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9.C.1. PRSR 11-12-2003 r Item # 9.C.I. J city or k El River MEMORANDUM TO: Park and Recreation Commission J FROM: Michele McPhersdW D rector of Planning DATE: November 12, 2003 SUBJECT: Consider 2004 Park Dedication Fees Attachments • December 2002 Park Dedication Survey Each year at this time the Commission considers a recommendation to the City Council regarding park dedication fees for cash dedication purposes. The current fees are as follows: Residential $1,615 per dwelling unit Commercial $3,000 per acre Industrial $2,000 per acre In recent years there has been no change to the commercial and industrial rates, however the City has consistently increased the residential rate at 5 percent or slightly lower. An increase of 5 percent in the residential rate would result in a rate of$1,695.75 per unit, an increase of approximately$80.00. Staff would recommend,if the Commission is interested in continuing its past practice,that the amount be reduced to $1,695.00, a portion of which is dedicated to trail construction. Attached for your information is the 2002 park dedication survey that was completed on behalf of the Minnesota Recreation and Parks Association. Staff contacted the cities of Otsego,Ramsey, and St.Michael to determine what their current rates are: Otsego Ramsey St.Michael Residential $2100/unit $1800/unit $2000/unit Commercial $7000/gross acre 5% fair market value $3000/acre Industrial $3500/gross acre 5% fair market value $2000/acre Memo to Park and Recreation Commission November 12,2003 Page 2 As you can see from the table, even with a five percent increase,the City's fee will remain lower than it's neighboring communities. Trail Reimbursement On a related issue,the City has typically reimbursed developers for bituminous trail construction. The current rate of reimbursement is $10 per lineal foot of trail. It is staff's opinion that like sidewalks,trails that are required by the City should be a development cost borne by the developer and ultimately by new homeowners. Staff would recommend the Commission consider eliminating trail reimbursement to developers as part of its recommendation to the City Council. Recommendation Staff recommends that the Commission recommend the following park dedication cash rates to the City Council: Residential $1,695 per dwelling unit Commercial $3,000 per acre Industrial $2,000 per acre Staff also recommends that the Commission recommend the Council eliminate trail reimbursement to developers for the construction of bituminous trails in developments. 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