8.5. SR 10-06-2014 City of
Elk Request for Action
River
To Item Number
Mayor and City Council 8.5
Agenda Section Meeting Date Prepared by
General Business October 6, 2014 Jeremy Barnhart,Deputy Director, COD
Item Description Reviewed by
Ordinance Amending Fee Schedule to Remove Cal Portner, City Administrator
Park Dedication Fees Reviewed by
Action Requested
Adopt,by ordinance, an amendment to the 2014 Master Fee Schedule to remove park dedication fees.
Background/Discussion
Section 30-327 of the city code establishes the parameters of Park Dedication.
In subparagraph a, a 10% of the platted land requirement is established. In subparagraph b,the cash in
lieu of requirement is established, and allows the Council to establish the fair market value by resolution.
In subparagraph f, fair market value is defined, and requires it to be determined in the same manner as
the county assessor for tax purposes. This provided an opportunity for an independent third party to
establish the FMV without appraising the property for every development.
Historically, the City Council has established a Park Dedication Fee as part of the annual fee schedule.
This fee is currently$3,712 per dwelling unit, $7,444 per commercial acre, and$2,485 per industrial acre.
The difference reflects the costs of the raw land in these areas, due in part to value added by existing
infrastructure (highways,water and sewer improvements, and area park amenities).
As shown on the attached spreadsheet, for three most recent platting projects,the Park Dedication Fee
imposed by the fee schedule is inconsistent with the fair market value formula established in
subparagraph f.
The city is nearing completion of the Parks Master Plan, and included within that scope is an examination
of the park dedication requirements. Until this master plan has been approved, staff suggests that the
park dedication fee identified by the fee schedule be removed, and the park dedication fee (where cash is
deemed appropriate) be imposed at a rate equal to 10% of the county-assessed value of the unplatted
parcel. The Parks Master Plan is expected to be completed in December.
This would impact any plat requiring cash donation,but not yet released for recording. These plats
include Coachman's Ridge, Natures Edge Business Center,DHJ Plat, and Heritage Maples. Once these
plats are released, there is no opportunity to go back and acquire additional Park Dedication, should the
formulas change.
P a w E R E U 6 Y
Template Updated 4/14 INIM UREI
Financial Impact
$450,457.68, the estimated difference between the 10% value and the fee schedule rates for the 5
identified plats.
Attachments
• Park Dedication Summary Sheet
• Ordinance
N:APublic Bodies\Agenda Packets\10-06-2014\Final\x8.5 sr park dedication fee.docx
Net 10%
Project
Total Net Area Residential County County (Sec 30-327-
Per Fee Financial
Area Platted Units Value Value f) Schedule Impact
Prestigous Woodland Hills 2nd 37.2 13.2 13 $17500.00 $ 62,380.65 $ 6,238.06 $ 48,256.00 $ 42,017.94
Natures Edge Business Center 46.16 32.7736 $ 33,500.00 $ 23,785.00 $ 2,378.50 $166,306.02 $163,927.52
Coachmans Ridge 3.19 2.19 52 $208,400.00 $143,070.85 $ 14,307.08 $193,024.00 $178,716.92
Heritage Maples 3 3 20 $ 9800.00 $ 98,000.00 $ 900.00 $ 74,240.00 $ 64,440.00
DHJ 0.31 0.31 1 $ 23,586.96 $ 2,356.69 $ 3,712.00 $ 1,355.31
$450A57.68
Fee schedule fees
Residential (per unit) $3,712.00
Commercial (per acre) $7,444.00
Industrial (per acre) $2,485.00
Stfikethfoughs to be removed
Underlines to be added
WA
City of
Elk -�-�
River Ordinance 14 -
An Ordinance Amending the 2014 Master Fee Schedule to Remove the Park
Dedication Fee of the City of Elk River, Minnesota, City Code
The City-Council of the City of Elk River does hereby ordain as follows:
SECTION 1. That the 2014 Master Fee Schedule of the City of Elk River Code of Ordinances
shall be amended as follows:
PARK DEDICATION FEE
Park dedication fees shall be as outlined in Elk River City Code, Section 30-327.
f indtistfi $2,485/acre
SECTION 2. That this ordinance shall take effect October 6, 2014, and be published as provided
by law.
John J. Dietz,Mayor
ATTEST:
Tina Allard, City Clerk
P 0 w I R I D 0
ATUR
Last Updated March 2014 IN ]