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HomeMy WebLinkAbout2.a. Parks Dedication - SKB Environmental Metals Recycling Facility and Maintenance Shop EXECUTIVE SUMMARY City Council Work Session: August 6, 2018 AGENDA ITEM: Park Dedication Fee - SKB Environmental Metals Recycling Facility AGENDA SECTION: Discussion PREPARED BY: Dan Schultz, Parks and Recreation Director AGENDA NO. 2.a. ATTACHMENTS: Letter from SKB Environmental APPROVED BY: LJM RECOMMENDED ACTION: None, discussion only. ISSUE SKB Environmental recently received approval of a 52 acre Planned Unit Development for a Metals Recycling Facility and Maintenance Shop. As part of their development, they subdivided their property. When property is subdivided, staff reviews the plans for parks dedication (cash or land) payment as identified in the City’s Subdivision Ordinance. The SKB property being subdivided was zoned as industrial, thus the parks dedication fees were collected based on the Subdivision Ordinance and City’s fee policy. The Subdivision Ordinance calls for a collection of 10% of the total area being developed or cash in-lieu of the land at a rate of $50,000 per acre as identified in the City’s fee policy. Staff recommended the developer pay a cash in-lieu of land dedication in the amount $260,000 (10% of 52 acres is 5.2 acres multiplied by $50,000 per acre). SKB Environmental has submitted a letter (attached) requesting to pay their parks dedication fees at a later date or through some sort of payment plan because they did not know about the fees, thus they had not included the parks dedication fees in their 2018 project budget. Their letter also asks that the City consider providing them with some relief of an unspecified portion of the parks dedication fees due to the environmental benefits of the intended recycling use on the site, and the amount of preserved and created green space. Staff from the Parks and Recreation Department supports allowing SKB to pay their parks dedication fees on this project any time prior to July 1, 2020. The Parks and Recreation Department staff does not support a reduction in their fees as requested by SKB Environmental. Staff finds that the business being proposed for the site does not positively impact the City’s attempts to provide additional recreation facilities for our residents and the green space being preserved and/or created with this project does not add a benefit to the City’s public parks system. As previously noted, subdivision of the land is what triggers the payment of the park dedication fee. Should additional development occur on the site in the future, there would be no ability to acquire additional fees at that time, regardless of the impact of the future use. Finally, the amount of open space provided on the site is a function of the applicant’s development plan and is not related to any regulatory requirements for provision of open space. Using the lack of development density to justify a park dedication fee reduction could lead to other property owners underutilizing their property, which is contrary to the goals of the City Council. SUMMARY Staff is requesting the City Council review the attached letter submitted by SKB Environmental and provide direction to staff on how to collect the parks dedication on this project.