4.1. SR 06-26-2000Tity of
River
MEMORANDUM
Item #4.1.
TO:
FROM:
DATE:
SUBJECT:
Mayor and Council
Pat Klaers, City Administrator
June 26, 2000
Brookstone Development
On Tuesday, June 20, 2000, Finance Director Lori Johnson and I met with
Rick Martens, president of Brookstone Inc., regarding their financial
obligations for the business park project. The issues discussed included park
dedication fees, surface water management (SWM) fees, and the possible
payment of these fees over time.
Based on the discussion of City Council at its last meeting, I believe I heard
the majority indicate that a compromise on at least the park dedication fee
amount was appropriate and that payment of the fees over time was
acceptable. The Park and Recreation Commissioners' strong feelings regarding
the full payment of park dedication fees make this a sensitive topic. It is very
important for the city to keep the volunteer Park and Recreation
Commissioners enthusiastic about enhancing the park system.
From the staff point of view, full collection of the SWM fee at the time of
platting is very important. The reasoning for this position is that this is an
existing fee and an error was made in documenting the amount of the fee.
Accordingly, if the fee is reduced, or allowed to be paid over time, a clear
precedent would be established. On the other hand, the park dedication fee for
industrial/business park properties is new and this preliminary plat was done
prior to the fee being established. Evidently clear information on this fee was
not provided to the developer in a timely fashion. In fact, if the developers had
been present when the council considered this new fee, they may have been
successful in obtaining some concessions from the city. Nonetheless, we will
not have this type of situation again, so I don't believe allowing a reduced fee
or payment over time for the park dedication obligation will set a precedent.
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425
The request from the developer was for both the park dedication fee and the
SWM fee to be paid over time and that the $64,000 park dedication fee be, at a
minimum, reduced in half.
Recommendation
It is recommended to the City Council that the entire $28,000 surface water
management fee be paid at the time of platting (In general terms, this amount
is based on 32 acres of land and $876 per acre).
It is further recommended that $32,000 in park dedication fees be paid
beginning with the development of the second lot and that the fee be paid
when building permits are issued.
The SWM and park dedication fee recommendations are acceptable to Mr.
Martens.
Finally, it is recommended that the city transfer $32,000 from its general fund
cash balance to the parks capital project reserve in order for the Park and
Recreation Commission to be made whole for the entire $64,000 that it would
have received if things had gone according to the ordinance.
s: \ council \ brookstn.doc