6.0. PRSR 08-02-1989 Y -
TO: PARK AND RECREATION COMMISSION
City a ,
FROM: STEPHEN ROHLF, B & Z ADMINISTRATOR
`Elk :
River
DATE: JUNE 27 , 1989 S 6
SUBJECT: DISCUSSION OF PARK DEDICATION FEES
FOR COMMERCIAL AND INDUSTRIAL
DEVELOPMENT
The Elk River Code of Ordinances has a provision for collecting
park dedication fees for commercial and industrial development,
as well as residential development. Currently, the City is only
collecting park dedication fees for residential developments .
At this time, the residential fee is $350 .00 per dwelling unit .
A single-family house would be considered one unit; a 24 unit
apartment building would be considered 24 units.
At a joint meeting of the Planning Commission and the City
Council, both groups agreed that park dedication fees should be
collected for commercial and industrial development as well .
Attached to this memo are some examples of what other communities
charge for park dedication fees .
This fee needs only to be established by resolution of the City
Council. However, staff has been asked to get a recommendation
from both the Planning Commission and the Park and Recreation
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Commission. The Planning Commission has reviewed this subject
and their recommendation is as follows:
1 . That park dedication fees for commercial and industrial
development should be charged on a per unit basis.
2 . A unit is considered one acre.
3 . Commercial and industrial lots will be considered to be a
minimum of one unit (a one-half acre commercial or
industrial lot would still be charged one unit for park
dedication fees) .
4 . The charge per unit should be $2,000 .
5 . Commercial and industrial lots over one acre in size would
be charged proportionately (a 11 acre commercial or
industrial lot would be charged 15 units equaling $3 ,000 in
this example) .
It is important that the City collect these fees to acquire and
develop an ' adequate park system. However, it is also important
that we do not over charge with these fees and discourage
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720 Dodge Avenue N.W., Elk River, Minnesota 55330 (612) 441-7420
.r a
Page 2
Park and Recreation Commission
Park Dedication Fees
development, especially industrial development which aids the
City' s tax base. What has been proven reasonable to charge in
court is 10% of the raw land value of the parcel . With the
Planning Commission' s recommendation, commercial and industrial
property in Elk River would be worth $20,000 per acre of raw
land. This is certainly true for commercial property but
possibly not for industrial .
After the Park and Recreation Commission gives their
recommendation, staff will pass both the Planning Commission ' s
and your recommendation on to the Council for approval of a
resolution establishing the fee.
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