10.1. SR 07-07-2014 City of
Elk=' Request for Action
River
To Item Number
Mayor and City Council 10.1
Agenda Section Meeting Date Prepared by
Work Session July 7, 2014 Jeremy Barnhart,Deputy Director, COD
Item Description Reviewed by
Development Fee Review Cal Portner, City Administrator
Reviewed by
Action Requested
Receive information related to fees charged to developers and provide staff direction.
Background/Discussion
A developer recently voiced concern with city costs associated with the development of his project,the
Kia car dealership and associated Plat of Jabez, Second Addition. A City Councilmember requested a
review of the fees.
The city charges fees for various services encumbered as part of a development. The fees are established
by the Council and are intended to defray the costs created by the development to avoid having general
taxpayers subsidize new development.
Using the Kia dealership as an example,the property owner requested preliminary and final plat approval,
plus Conditional Use Permit approval for the car dealership. The improvements required as part of the
plat included the extension of a public street adjacent to the property, and improvement of associated
storm water treatment facilities.
The Kia Dealership Fees spreadsheet attached applies development fees to the Kia dealership in three
cities,including Elk River. The cities were chosen because the developer has operations in each city and
presumably,these are the fees being compared in his statements. Amounts in bold indicate the highest of
that category.
The 10-City Fee Comparison compares 10 peer cities. The Building Fee Comparison looks strictly at the
building permit related fees, for several types of permitted improvement. The challenge with any fee
comparison is that not all fees translate directly and all cities do things a bit differently. Fees do not
include any special assessments or other information not included in the published fee schedule.
Financial Impact
None
Attachments
• KIA Dealership Fees
• 10-City Fee Comparison
• Building permit comparison
P a w E A E U a r
NaA f RE]
KIA Dealership Fees
Assumptions: 2.8 acres,3.7 SAC units,18,419 sf,$1,984,000 valuation)
Elk River Monticello Plymouth Notes
Development review process
Platting applications (preliminary,final,
escrow) $ 2,050.00 $ 2,350.00 $ 2,500.00
Conditional use permit application $ 275.00 $ 200.00 $ 500.00 All assume the collection of one escrow
Review fee total $ 2,325.00 $ 2,550.00 $ 3,000.00
Development Agreement fees (negotiated individually) Development Agreement fees are based
on applying established fees to the KIA
development in each city
Assumes 79.87 hours. Monticello and
Plymouth examples apply number of
1 Escrow deposit(DA) $ 6,788.72 $ 8,146.74 $ 4,792.20 hours times the appropriate staff rate
Plymouth charges a utility rate to surface
water management.$35.9 per month,for
2 Surface Water Management fee $ 3,603.00 $ 9,086.00 N/A the subject parcel.
3 Seal Coating $ 1,750.00 N/A N/A
Monticello does not require park
dedication for non residential
development,Plymouth charges$8,000
Park dedication $ 20,843.00 None $22,400.00 per com/industrial acre.
Development subtotal $ 32,984.72 $ 17,232.74 $27,192.20
Building permit
All are based on the UBC fee schedule.
Monticello adds 6%,Plymouth adds
Permit fee $ 9,204.00 $ 9,756.24 $ 9,892.75 additional flat fee
State surcharge $ 893.64 $ 893.64 $ 893.64 Establihsed by the state
Plan Check $ 5,982.60 $ 6,341.56 $ 6,430.29 percentage based on the permit fee
Building dept subtotal $ 16,080.24 $ 16,991.44 $ 17,216.68
Utility fees
SAC $ 16,650.00 $ 14,911.00 $ 9,194.50
Monticello calls it Trunk Water Charge,
Plymouth applies an inflated SAC unit to a
combination of Water and Sewer
WAC $ 11,894.91 $ 8,387.90 $ 8,270.00 connection charges
Utility fee subtotal $ 27,975.15 $ 25,379.34 $25,486.68
Project total $ 79,365.11 $ 62,153.51 $ 72,895.56
Adjusted total(comparing like costs)
vs.Monticello $ 56,772.11 $ 62,153.51
vs.Plymouth $ 74,012.11 $ 72,895.56
1 Elk River collects escrow through the DA to pay engineering and inspection services. The amount is 10%of the construction
costs.ER charges$85/hour. Monticello charges$102-$142 per hour
2 Surface Water Management Fee is currently the primary method for funding surface water management operations.Plymouth uses
a per month fee(Stormwater Utility Fee),for this project,that fee would be about$35.50 per month.
3 Seal Coating Fee can be eliminated. It was a function of the old method to paying for and maintaining streets,since replaced with
franchise fee
10 Cities Fee Comparison
Elk River
Big Lake Ramsey Otsego Rogers Cottage Grove Chaska Monticello Plymouth
Preliminary Plat- $519
Preliminary Plat 2 parcels $75. 3 parcels Preliminary Plat App + $2.34/acre +
Plata application Preliminary plat $750; $5000 150•Major plat 500 2 parcels $75; 3 parcels Preliminary$500 500 + 350 ea. Preliminary lat A 10.34 lot + 1070
pp 275 plus 1500 p 150• 285 a 310 PUD app/$2,800 escrow• $ Y pp $10.34/
lot
(App + � p � escrow Final a 1500 escrow• � ' � pp' � Additional lot 10 000 $400/$15,000 escrow• rocessin fee• Final 2 350 2 500
escrow. Final Plat pp/� + 125 ea. base of final Final 500 app/$1,000 /� p g � ' � '
escrow 500 1000 minor plat 300 plat escrow. Final Plata Final Plat 200 Plat- 203 + 6.34 lot
� 275 CUP 275 � � p � lat escrow pp � � .� /
' escrow a 900 escrow p 200 10 000 escrow + rocessessin fee of
app/$900 � /� � p g
$620
Residential: 10% total Park Dedication:
gross area or cash Residential-
$3,712 per 712 Res 1' / $600/unit 600 unit- $3200/unit. $4682/unit
unit' $7,444 p p plus $3,348/du:er a apartments,TH's lus 300 Residential: Industrial Park Dedication- /Commercial Commercial/
Industrial 11% for. . - only in certain - 9884 ac.Trails: residential
acre commercial per bedrom above 1 st Commercial- Residential: $3500/unit; y $. / $6,500 per R
Park dedication 2500 per unit- p $ / Instances may require Residential- 379 sf. none for . p
2 485 per acre $ p See Attached bedroom;or 1 ac. Land for $7,000/gross acre; Commercial Y q $ / unit $8)000
acre $ p 10%land 10%of undevelo ed unit• 306 TH commercia ' $ '(per � industrial (tied to ever 75 ersons at rate of Industrial$3,500/gross 7000 acre• Industrial p ' $ er C I acre
Y persons $ / land or cash not to detached; 312 unit 1 or per
10%property 3.5 persons,or combination acre 5000 acre ' $ /
p p Y p $ /
value) of cash/land exceed 4% of fair TH attached•' industrial
market value of land $213/unit Apts;
and time of subdivision Commercial/Industrial
approval $1,137ac.
General staff work:
No set hourly fee - Actual cost
Administrative Consultant: 3% Actual costs for time staff person
Consultant Planner $30/hr. (no specific
Engineering fee$600 contractor bill Other spent by Planning, No fees other than $102-$142 hourly wage;
$85/ hour $1 35/hr. On-site engineering fees listed $134/hr.
staff hourly rate Hourly fee Professional Staff en g ineerin g'landscape application fees per hour $60/hr
Planner$50 services: 2.30 x$wage inspection fees $50 hr. other than survey review architect and/or legal inspections
s
$150 lot
consultants bill directly only
Y
$5225/unit g le Family Sin l - Residential:West draw
. area$386/unit;rest of
3135 for multi- $4300/unit; / 1062 per
$ 5 950 (see attached unit $ / cit 319 unit• $ p SAC $4,500 er unit tenant buildin s $21485 $ 2200 REC Commercial Industrial- y$. / $1,295/unit $41030 developable
p g fees $ / / Commercial Industrial p
neater than 4 ) 4300 first unit then / acre
g $ 1 352/acre;Mero
units 2100 add'1 units $ /
$ / SAC $2,485/unit
$3485/unit
$2100 /unit for
multi-tenant Residential:West draw
buildings neater Single Family- area$1275/unit;rest $3,832/unit;Met Trunk 3942 per
3 124.84 per g greater $3275/unit; / ' . Council Envlron. charge $ p
WAC $ ' p than 4 units. If $11177 750 (see attached unit fees 1566 REC $ / of cit 963 unit• g develo able
SAC unit $ $ ) $ / Commercial Industrial- Y� / ' . Services SAC - $21267/ p
over 25,000 / Commercial Industrial $ / acre
3275 unit / $2,485/unit acre
$ / 2444 acre
gal/day-cost $ /
determined by
City Engineer
Ramsey,Rogers, Cottage Grove, Chaska, and Plymouth are Met Council cities. Met Council imposes land use and taxing authority over cities and propoerty owners,in addition to
those fees listed
2014 Buildin g Comparison Fee
Building Building HVAC Plumbing Reroof Garage
° Commercial Residential Commercial Commercial Residential Residential
L � L L L L L
3 0 s 5 $500,000 0 s $300,000 0 .5 0 .�p s $60,000 0 .�p 30 X 50
-j
s s
Maple Grove not allowed
Permit fee cost $5,585.69 2 $3,643.00 6 $950.00 7 $950.00 4 $105.00 0 in MG
St. Michael Erosion control$1,000.00(+) Valuation -
Permit fee cost 3 $5,905.75 4 $3,867.50 3 $900.00 5 $900.00 $150 min. 3 $935.33
Anoka
Permit fee cost $5,585.69 1 $3,642.69 5 $930.00 2 $718.75 1 $60.00 0 Value based
Otsego
Permit fee cost 6 $6,169.26 7 $3,914.83 2 $785.13 4 $785.13 $150.00 2 $619.25
Big Lake
Permit fee cost 7 $6,662.97 8 $4,335.47 8 $1,200.00 8 $1,200.00 5 $110.00 5 $814.00
Monticello
Permit fee cost 4 $5,905.84 5 $3,873.28 1 $780.00 3 $780.00 6 $120.43 6 $1,060.23
Ramsey
Permit Fee Cost 5 $5,953.64 6 $3,873.64 7 $1,020.00 1 $630.00 3 $99.00 4 $693.86
F k River
it fee cost 2 $5,590.00 3 $3,817.00 4 $930.00 6 $930.00 2 $80.00 1 $302.00
Otsego (detached only-
we only allow 1,000
attached which would
cost $530.37)
City of T
Ells MEMORANDUM
River
TO: Cal Portner, City Administrator
FROM: Jeremy Barnhart, Deputy Director, CODD
DATE: July 9, 2014
SUBJECT: Development fee comparison
At the Council meeting on July 7 h, an error was noted in the spreadsheet I prepared outlining the
costs associated with the review and development of the KIA dealership is three cities.
In computing the utility fee subtotal I inadvertently added the building permit fee subtotal to the
WAC fee.
While this had a minor impact on the Elk River fee total,it did lower the fees for Monticello and for
Plymouth.
You may recall the larger cost centers were related to park dedication,which we are studying, and
the SAC and WAC fees,which are reviewed annually and are established to cover costs.
Both spreadsheets are attached, titles original and revised. I regret the error.
Wftj RI1 @Y
C:A Users\jjohnson\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\SFWAYSNS\07 11 cx
KIA Dealership Fees (revised)
Assumptions: 2.8 acres,3.7 SAC units,18,419 sf,$1,984,000 valuation)
Elk River Monticello Plymouth Notes
Development review process
Platting applications(preliminary,final,
escrow) $ 2,050.00 $ 2,350.00 $ 2,500.00
Conditional use permit application $ 275.00 $ 200.00 $ 500.00 All assume the collection of one escrow
Review fee total $ 2,325.00 $ 2,550.00 $ 3,000.00
Development Agreement fees(negotiated individually) Development Agreement fees are based on
applying established fees to the KIA
development in each city
Assumes 79.87 hours. Monticello and
Plymouth examples apply number of
1 Escrow deposit(DA) $ 6,788.72 $ 8,146.74 $ 4,792.20 hours times the appropriate staff rate
Plymouth charges a utility rate to surface
water management.$35.9 per month,for
2 Surface Water Management fee $ 3,603.00 $ 9,086.00 430.80/yr the subject parcel.
3 Seal Coating $ 1,750.00 N/A N/A
Monticello does not require park
dedication for non residential
development,Plymouth charges$8,000 per
Park dedication $ 20,843.00 None $22,400.00 com/industrial acre.
Development subtotal $ 32,984.72 $ 17,232.74 $27,192.20
Building permit
All are based on the UBC fee schedule.
Monticello adds 6%,Plymouth adds
Permit fee $ 9,204.00 $ 9,756.24 $ 9,892.75 additional flat fee
State surcharge $ 893.64 $ 893.64 $ 893.64 Establihsed by the state
Plan Check $ 5,982.60 $ 6,341.56 $ 6,430.29 percentage based on the permit fee
Building dept subtotal $ 16,080.24 $ 16,991.44 $ 17,216.68
Utility fees
SAC $ 16,650.00 $ 14,911.00 $ 9,194.50
Monticello calls it Trunk Water Charge,
Plymouth applies an inflated SAC unit to a
combination of Water and Sewer
WAC I $ 11,894.91 1 $ 8,387.90 1 $ 8,270.00 connection charges
Utility fee subtotal $ 28,544.91 $ 23,298.90 $ 17,464.50
Project total $ 79,934.87 $ 60,073.08 $ 64,873.38
Adjusted total(comparing like costs)
vs.Monticello $ 57,341.87 $ 60,073.08
vs.Plymouth $ 74,581.87 $ 64,873.38
1 Elk River collects escrow through the DA to pay engineering and inspection services. The amount is 10%of the construction costs.ER
charges$85/hour. Monticello charges$102-$142 per hour
2 Surface Water Management Fee is currently the primary method for funding surface water management operations.Plymouth uses a per
month fee(Stormwater Utility Fee),for this project,that fee would be about$35.50 per month.
3 Seal Coating Fee can be eliminated. It was a function of the old method to paying for and maintaining streets,since replaced with
franchise fee
KIA Dealership Fees (original)
Assumptions: 2.8 acres,3.7 SAC units,18,419 sf,$1,984,000 valuation)
Elk River Monticello Plymouth Notes
Platting applications (preliminary,final,
escrow) $ 2,050.00 $ 2,350.00 $ 2,500.00
Conditional use permit application $ 275.00 $ 200.00 $ 500.00 All assume the collection of one escrow
Review fee total $ 2,325.00 $ 2,550.00 $ 3,000.00
X11 1 l 1J 1 1 J J J �JJJJ J J J �JJ �J, J J J�J �J J J� lJ
J l Development Agreement fees are based
on applying 1 i established fees to the KIA
development in each city
Assumes 79.87 hours. Monticello and
Plymouth examples apply number of
1 Escrow deposit(DA) $ 6,788.72 $ 8,146.74 $ 4,792.20 hours times the appropriate staff rate
Plymouth charges a utility rate to surface
water management.$35.9 per month,for
2 Surface Water Management fee $ 3,603.00 $ 9,086.00 N/A the subject parcel.
3 Seal Coating $ 1,750.00 N/A N/A
Monticello does not require park
dedication for non residential
development,Plymouth charges$8,000
Park dedication $ 20,843.00 None $22,400.00 per com/industrial acre.
Development subtotal $ 32,984.72 $ 17,232.74 $27,192.20
Jill 11 VIII"1�J J J J
All are based on the UBC fee schedule.
Monticello adds 6%,Plymouth adds
Permit fee $ 9,204.00 $ 9,756.24 $ 9,892.75 additional flat fee
State surcharge $ 893.64 $ 893.64 $ 893.64 Establihsed by the state
Plan Check $ 5,982.60 $ 6,341.56 $ 6,430.29 percentage based on the permit fee
Building dept subtotal $ 16,080.24 $ 16,991.44 $ 17,216.68
SAC $ 16,650.00 $ 14,911.00 $ 9,194.50
Monticello calls it Trunk Water Charge,
Plymouth applies an inflated SAC unit to a
combination of Water and Sewer
WAC $ 11,894.91 $ 8,387.90 $ 8,270.00 connection charges
Utility fee subtotal $ 27,975.15 $ 25,379.34 $25,486.68
Project total $ 79,365.11 $ 62,153.51 $ 72,895.56
Adjusted total(comparing like costs)
vs.Monticello $ 56,772.11 $ 62,153.51
vs.Plymouth $ 74,012.11 $ 72,895.56
1 Elk River collects escrow through the DA to pay engineering and inspection services. The amount is 10%of the construction
costs.ER charges$85/hour. Monticello charges$102-$142 per hour
2 Surface Water Management Fee is currently the primary method for funding surface water management operations.Plymouth uses
a per month fee(Stormwater Utility Fee),for this project,that fee would be about$35.50 per month.
3 Seal Coating Fee can be eliminated. It was a function of the old method to paying for and maintaining streets,since replaced with
franchise fee