6.C. PRSR 02-10-1999 ,ity of
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ver Item# 6.C.
MEMORANDUM
TO: Park and Recreation Commission
FROM: Stephen Wensman, Planner j
DATE: February 10, 1999
SUBJECT: Park Dedication Fees
Request
That the Park and Recreation Commission review park dedication fees.
Overview
Staff has researched park dedication fees in other cities. Previously, staff
surveyed 19 cities and found a variety of approaches to park dedication fees
with some greater than and some lesser than Elk River. Overall, Albertville
has the highest fees and the most comprehensive ordinance. Upon surveying
cities, there were no obvious method that were used to determine fees. The
cities surveyed have varying amounts of developable land and varying needs
for parks and park improvements.
The St. Cloud study of park dedication being conducted by SDU is likely to be
completed in April or May of 1999.
Attachments
• Resolution 95-87
• Park Dedication /Trail Fees 1Survey
• Development Scenarios 1 and 2
13065 Orono Parkway • P.O. Box 490 • Elk River,MN 55330 • TDD &Phone: (612) 441-7420 • Fax: (612)441-7425
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Elk •
River
Development Scenario 1- Urban Service
Assuming 100 acres @ 2.2 lots per acre (220 lots) ($10,000/acre)
Cost of 100 acres of raw land $ 1,000,000
Cost of raw land per lot $ 4,545
Development cost per lot (costs can vary):
Closing costs $ 50
Special assessments $ 12,000
Engineering $ 1,500
Park fees $ 650
Grading $ 1,000
Electric $ 420
S SAC $ 300
WAC $ 1,300
Surface water management $ 138
Plat fees $ 6
Carrying Costs $ 8
$ 17,371
Profit/lot (30-40% for bank financing) $ 10,000
Market Value of developed lot ($30,000-45,000) $ 31,917
Property value 10% land dedication (100x10,000x.10) $ 100,000
Market Value of 10% land developed (30000x220x.10) $ 660,000
220 lots
Park dedication at 650/unit $ 143,000
Park dedication at 1,100/unit $ 242,000
Park dedication at 1,250/unit $ 275,000
Park dedication at 3,000/unit $ 660,000
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13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • TDD&Phone: (612)441-7420 • Fax: (612)441-7425
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Elk •
River
Development Scenario 2- R1 a
Assuming 40 acres, 14 - 2.5 acre lots (14 lots) ($8,000/acre)
Cost of 40 acres of raw land $ 320,000
Development cost per lot (costs can vary):
Closing costs $ 50
Special assessments
Engineering
Park fees $ 650
Grading
Electric
III Septic Insallation Fee $ 60
Surface water management $ 69
Plat fees $ 36
Carrying Costs $ 250
$ 40,000
Profit/lot (30-40% for bank financing) $ 5,000
Average market value of developed 2.5 acre lot $ 45,000
Property value 10% land dedication (40x8,000x.10) $ 32,000
Market Value of 10% land developed (14x45000x.10) $ 63,000
14 lots
Park dedication at 650/unit $ 9,100
Park dedication at 1,100/unit $ 15,400
Park dedication at 1,250/unit $ 17,500
Park dedication at 4,500/unit $ 63,000
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13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • TDD &Phone: (612)441-7420 • Fax: (612)441-7425