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8.2.A. PRSR 12-14-2005Item # 8.2.A. I~I~~C•7:7~\.1~1~1u1 TO: Parks and Recreation Commission FROM: Bill Maertz, Parks and Recreation Director DATE: December 14, 2005 SUBJECT: Request by Metro Plains to be Charged 2004 Park Dedication Rates Request Consider request by Metro Plains Development to calculate park dedication rates for the Bluffs of Elk River and Jackson Place at the 2004 rate. Background Both the Blufs of Elk River and Jackson Place received platt approval in 2005. Metro Plains Development has requested that park dedication for the two downtown projects be calculated at 2004 rates. Metro Plains has written a letter stating that they had a verbal agreement with Pat Klaers and Michelle McPherson, agreeing to freeze park dedication rates at the 20041eve1. In this letter, MetroPlains states that: The minutes from the October 13, 2004 Park Commission meeting indicate that a request to freeze rates was not presented to the Park Commission when dedication for the Bluff block was considered. Any understanding between city staff and Metro Plains requires a review by the Park Commission followed by City Council action. If park dedication fees for the two projects is charged at the 2004 rate, the fees will total $217,800. At the 2005 rates the fees will total $277,200, a difference of $61,200. To put this in perspective, the 5% park dedication fee increase, approved by the City Council on December 5, will generate approximately $50,000 in 2006. The 2006 parks capital improvement budget includes $660,000 for construction of Rivers Edge Commons. The development of this park will be a direct benefit to Metro Plains as they market the Bluff and Jackson Blocks. Recommendation Calculate park dedication fees at the 2005 rates. The 2004 rate freeze, referenced in Metro Plains' letter was never reviewed by the Park Commission, nor approved by the City Council. Attachment • Letter from Metro Plains METRO ~ ~_ -~-.~_=~-~ CE\'ELOPAIENT Pf.JPE RTIES bIT\.\G Ert~ENT November 9, 2005 °` ~:~_ Ms. Catherine Mehelich 13065 Orono Parkway Box 490 Elk River. MN 55330 RE: T iic Blufs Uf Ek iu' : C: and Jackson Place Park Dedication Fees Dear Ms. Mehelich: The Bluffs of Elk River has started construction and Jackson Place is preparing to start construction. Payment of Park Dedication Fees is one of the requirements of the Building Permit Application. The Bluffs of Elk River and Jackson Place are prepazed to submit payment of Park Dedication Fees at the 2004 rate. The 2004 rate was approved as a result of a serious of meetings and discussions held with staff, including you, Michelle McPherson, and Pat Klaers. Jackson Place, as pazt of its financing approval, originally had requested from the City considerations relating to Land Acquisition Price, SAC; WAC, and Pazk Dedication Fee. These requests were critical in being able to secure approval from the Minnesota Housing Finance Agency because they illustrated the City's commitment to participating in the Housing Tax Credit Pt'ograin and the affordable housing component of Jackson Place. The conclusion of these discussions was that all but the Park Dedication Fee would be considered as part of the Development Agreement. Further discussions on the Park Dedication Fee focused on the timing and sequencing related to the complexity of this development and the interrelationship of Jackson Place and The Bluffs of Elk River. W e eventually concluded that it would be appropt'iate for the Park Dedication Fee to be frozen at the 2004 rate. The Bluffs of Elk River had requested consideration from the Park Board and staff that the donation of land be accepted in lieu of cash for the Patk Dedication fee. The land in question was the parcel between the buildable area of The Bluffs and the Mississippi River, primazily the wild and scenic area. This request was reviewed, discussed, azid eventually' denied in favor of cash for the Park Dedication Fee. Again. as paz-t of this final discussion, the Park Dedication Fee was agreed to be frozen at the 2004 rate. This decision was reached in early 2005. It was approved by both Michelle McPherson and Pat Klaers. i)i'i"•.C l'. U±LG-4 G.T838 - ~ _i:: GJ LG4G.8947 ~. , i'. N'N'R'.MET 0.0PL\INSC OhI - iG00 UNIVERSITY AVENUE -SUITE ?I? $T. PAUL, hIN JJ 10~-38?i The team of the City of Elk River and MetroPlains has worked and continues to v<~ork tluough issues that eventually will lead to the successful revitalization of downtown Elk River. Both The Bluffs of Elk River and Jackson Place are preparing for various closings based upon these approvals. We have passed the threshold of making significant changes that affect the base economic assumptions of both of these projects. The financing for both of these projects is very complicated and has been tnonths in the process of receiving approvals from various ftnance committees, bank boazds, syndicators, tax increment financing committees, etc. We therefore request that the City honor the prior approval of calculating the Park Dedication fees at the 2004 rates. We also ask that no other fees be required at the Building Permit Application, other than the Standard Surface Water Management fee. Sincerely, Laverne Hanson, Jr. cc: Scott Clark John Etrigo G:~EIk River Both~[v1DU Pazk Dedication Fees Mehelich 11-09-OS Park & Recreation Commission Minutes October 13, 2004 Page 3 Mr. Maertz shared that there was an article in the Star News about the Rain Garden at Lake Orono and that he is still working on getting a cost for the project. Mr. Maertz shared that the drab 10-year CIP budget is 2.4 million dollars and focuses on replacing aging structures and developing existing parkland. Mr. Maertz stated the land acquisition potential costs are 8-10 million dollars. 8.1. Community Events• 3~a Annual Family Fright Night Director of Pazks and Recreation, Bill Maertz shared with the Commission that they aze still in need of volunteers for the Family Fright Night. Comtissioner Polston-Hork shared that her family will be volunteering again this year. Comtissioner Polston-Hork stated that there is a meeting on Tuesday, October 19, 2004 at 7pm held at Lions Park Center for anyone interested in volunteering. Case No. AS 04-20 -Bluff Block Commission discussed the developers reques[ for park dedication for Otttlot A of the Bluff Block. Commissioner Niziolek would like to see a place to park bikes and go to the establishments. MOVED BY COMMISSIONER KUESTER AND SECONDED BY COMMISSIONER POLSTON-HORK TO ACCEPT THE STAFF RECOMMENDATION TO RECOMMEND TO THE CITY COUNCIL CASH DEDICATION FOR THE PRELIMINARY PLAT OF BLUFF BLOCK MOTION CARRIED 6-0. 8.3. Major Park Use -Woodlands Fellowship Church Director of Parks and Recreation, Bill Maertz shared with the Commission a request from Woodlands Fellowship Church for the use of Lions Park for a church fall festival on October 31, 2004. The fall festival will have a petting zoo, tractor pulled hayrides, and they are expecting up to 500 people attending. Commissioner Polston-Hork shazed that she was concerned about having a tractor pulling the hayride since they do not allow motorized vehicles on the trail. Commissioner Nystrom asked if they could use horses to pull the hayride. Commission directed Mr. Maertz to contact the group and encourage them not to use a tractor to pull the hayrides. 8.4.A. Skatepazk Director of Pazks and Recreation, Bill Maertz shared with the Commission that Recreation Manager Michele Bergh attended a skatepazk meeting in the Cities discussing issues with skatepazks. Mr. Maertz shazed that other cities have found that fences do not prevent problems with the park. Mr. Maertz shared that a staff person who works with the kids at the park would provide positive reinforcement.