HomeMy WebLinkAbout6.r. Amendment to the 2017 Schedule of Rates and Fees – Park Dedication Fees
EXECUTIVE SUMMARY
City Council Regular Meeting: June 20, 2017
AGENDA ITEM: Amendment to the 2017 Schedule of
Rates and Fees – Park Dedication Fees
AGENDA SECTION:
Consent
PREPARED BY: Dan Schultz, Parks and Recreation
Director AGENDA NO. 6.r.
ATTACHMENTS: Summary of the Land Value Market
Study
APPROVED BY: LJM
RECOMMENDED ACTION: Motion to approve resolution amending the 2017 Schedule of
Rates and Fees.
ISSUE
The Parks and Recreation Commission recently reviewed and subsequently recommended that the City
adjust our parks dedication collection methods and residential dedication fees. The review was done in part
because of a complaint we received from a developer who was bringing forward a high density
development project. The developer felt it was unfair to charge a one-bedroom apartment the same parks
dedication as a four-bedroom home. The City currently collects the same dedication fees for all unit types.
The topic of parks dedication collection methods is being addressed with a different agenda item.
With regards to the parks dedication fees that we collect, they were last studied and adjusted in 2010. Our
current fees are listed in Table A. Because staff is recommending we change our parks dedication
collection methods to have different collection requirements for low, medium and high density
developments, staff is recommending we do the same for the dedications fees.
Both the Commission and City Council recommended that we hire a consultant to prepare a Value Market
Study to help us set our parks dedication fees because they are based on land values. The Land Value
Market Study showed that there is a clear difference in land prices for varying types of density levels. With
that being said, staff is recommending that we set a per acre parks dedication fee for low, medium and
high density developments.
Staff is recommending that the City amend the 2017 Fees and Fee Policy for the parks dedication fees and
use the fees listed below in Table B. The Parks and Recreation Commission had a different
recommendation, see Table C, but staff believes the fees in table B are more development friendly.
TABLE A
Current Fees
density units/acre dedication per unit land value per acre cash dedication/unit
All densities N/A .04 acres per unit $85,000 $3,400
TABLE B
Staff’s Proposed Fees
density units/acre dedication per unit land value per acre cash dedication/unit
Low density 1 to 5 units/acre .04 acres per unit $85,000 $3,400
Med density 6 to 12 units/acre .03 acres per unit $95,000 $2,850
High density 12 to 30 units/acre .02 acres per unit $125,000 $2,500
TABLE C
Parks Commission Proposed Fees
density units/acre dedication per unit land value per acre cash dedication/unit
Low density 1 to 5 units/acre .04 acres per unit $85,000 $3,400
Med density 6 to 12 units/acre .03 acres per unit $105,000 $3,150
High density 12 to 30 units/acre .02 acres per unit $145,000 $2,900
BACKGROUND
The City of Rosemount recently hired Evergreen Land Services to conduct a Land Value Market Study to
assist the City with setting our parks dedication fees. At the City’s request, Evergreen has gathered land
sales information within the City of Rosemount and surrounding communities and prepared a market
study analysis. The market study is based on sales that are considered market qualified. Transactions that
appeared to be between related parties, older contract for deeds that were finalized, or sales influenced by
atypical market motivations were excluded from this study.
SUMMARY
Staff is recommending that the City Council consider amending our fees and fee policy to adjust our parks
dedication by adopting the fees as listed below:
Low density Residential $85,000 per acre/$3,400 per unit
Med density Residential $95,000 per acre/$2,850 per unit
High density Residential $125,000 per acre/$2,500 per unit
CITY OF ROSEMOUNT
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2017 - _____
A RESOLUTION AMENDING THE
2017 SCHEDULE OF RATES AND FEES
WHEREAS, the City Council has reviewed the 2017 Schedule of Rates and Fees and recognizes the need to
amend certain rates and fees for 2017; and
THEREFORE, BE IT RESOLVED by the City Council of the City of Rosemount, that the 2017 Schedule of
Rates and Fees shall be amended as shown;
IV. PARK DEDICATION FEES
A. Park Dedication Fees
Park dedication fees are outlined in City Subdivision Ordinance and City Ordinance No.
XVII.103 and .107 which state:
In all new residential subdivisions, the City shall require that a sufficient portion of such land
be set aside and dedicated to the public for parks, playgrounds or other public use exclusive
of property dedicated for streets and other public ways. It shall be presumed that a sufficient
amount of land has been dedicated for parks and playgrounds for the present and future
residents of the subdivision, if the subdivider dedicates at least 1/25 of an acre per dwelling
unit that can be constructed in the subdivision. The City upon consideration of the particular
type of development proposed in the subdivision may require larger or lesser amounts of land
be dedicated if the City determines that the present and future residents of the subdivision
would require greater or lesser amounts of land for such purposes. The City shall determine
whether cash in lieu of land dedication is more appropriate. The amount of cash dedication
shall be determined by multiplying the number of acres otherwise required to be dedicated by
the average value of comparable undeveloped land set by resolution by the City Council.
In all new commercial and industrial subdivisions, it shall be presumed that a sufficient
amount of land has been dedicated to serve the needs of the resident and working population
if the sub divider dedicates at least ten percent (10%) of the land in the subdivision for parks,
recreation and usable open space. The City upon consideration of the particular type of
development proposed in the subdivision may require larger or lesser amounts of land to be
dedicated if it determines that the present and future residents of the subdivision would
require greater or lesser amounts of land for such purposes. The City shall determine
whether cash in lieu of land dedication is appropriate. The amount of cash dedication shall
be determined by multiplying the number of acres otherwise required to be dedicated by the
average value of comparable undeveloped land set by resolution of the City Council.
Land Values for the dedication of land and/or cash contribution:
New residential subdivision $85,000 per acre
Low density Residential $85,000 per acre/$3,400 per unit
Medium density Residential $95,000 per acre/$2,850 per unit
High density Residential $125,000 per acre/$2,500 per unit
Commercial subdivision $90,000/acre
Industrial subdivision $50,000/acre
Business Park development $85,000/acre
ADOPTED this 20th day of June, 2017, by the City Council of the City of Rosemount.
William H. Droste, Mayor
ATTEST:
Clarissa Hadler, City Clerk