9.1. SR 10-19-2015 �i
Elk Request for Action
River
To Item Number
Mayor and City Council 9.1
Agenda Section Meeting Date Prepared by
Work Session October 19, 2015 Michael Hecker, Parks and Recreation Director
Item Description Reviewed by
Park Dedication Fees Cal Portner, City Administrator
Reviewed by
Action Requested
Discussion of Park Dedication Ordinance language.
Background/Discussion
Based on City Council direction in June 2015, staff worked with HKGi to update the city's Park
Dedication ordinance.
This work provided includes potential approaches for the determination of Park Dedication and
recommended revisions to the City Code.
HKGi Planner Rita Trapp will lead a presentation with City Council on recommendations and updates to
the city's Park Dedication Ordinance
Financial Impact
N/A
Attachments
■ HKGi Update Memo on Park Dedication
P 0 W I R 1 0 0
Template Updated 4/14 INATUREJ
Hoisington Koegler Group Inc.
fflim
To: Elk River City Council and City Staff
From: Rita Trapp AICP
Subject: Update on Park Dedication Study
Date: October 14, 2015
As was directed at the June 15th City Council Work Session, HKGi has been working with City Staff on
evaluating potential approaches for the determination of park dedication and recommended revisions to
City Code Sections regarding park dedication.
Park Dedication Rates
Residential Dedication Rate
As was identified in the initial park dedication review,the City currently has one park dedication rate for all
residential densities.Given the difference in need and impact of the various types of residential development,it
is recommended that the City use a graduated system for its park dedication rate.As shown in the previous
PowerPoint presentation,the residential park dedication rates in other communities vary between 10%and
20%with a few outliers in some communities.
The following table was developed to illustrate the amount of park land needed to serve medium and high
density housing developments and the corresponding percentage of park dedication that would need to be
required to meet this need.The analysis uses the National Recreation and Park Association standard of 10 acres
per 1,000 people. It also assumes that medium density projects like townhomes have 2.25 people per unit and
multifamily projects like apartments have 1.75 people per unit.
DevelopmentDensity Acres of Dedication
Type of (units per Parkland Rate
People
Townhome Kliever Lake Fields 17.3 4.8 83 187 1.9 11%
Townhome Trout Brook Condominium 21.9 5.3 116 261 2.6 12%
Townhome Woods at ER Station 34.7 8.6 298 671 6.7 19%
Multi-Family Coachman Ridge 4.8 24 116 203 2 42%
Staff recommends that the City establish a park dedication rate based on density ranges rather than zoning
districts.This is recommended because different densities can occur within the same zoning district. The
following chart shows Staff's recommendation based on the analysis and comparisons with other communities.
Density7 units per Acre Park Dedication Rate
Low Under 4 units/acre 10%
Medium 4 to 7 units/acre 13%
High More than 7 units/acre 16%
123 North Third Street,Suite 100,Minneapolis,MN 55401-1659
Ph(612)338-3800 Fx(612)338-6838 www.hkgi.com
Page 2
Commercial and Industrial Dedication Rate
The City currently has a park dedication rate of ten(10) percent for commercial and industrial properties.As
was noted in at the June City Council Workshop,the park dedication survey HKGi completed this spring found
communities had park dedication rates ranging from two(2)to ten(10) percent with half using 10%. It is
recommended that the rate be maintained at 10%at this time.
Method of Cash in Lieu Dedication
The following table was developed to provide an overview, as well as the pros and cons of each potential
method for collecting cash in lieu of a land dedication.
Method Overview
Set based on Use the fees set by other • Easy to implement • May not be reflective of real
neighboring communities as the basis for • Ensures City is estate market
communities the fee in Elk River competitive • Potential for legal challenge
as does not meet state
statute requirements
County Assessors Use estimated market value of • Easy to identify • Lags behind marketplace so
Value the land for fee collection • Generally accepted may collect too much or too
method little
Appraisal Study Hire an appraisal firm to • More accurate to • Study estimated to cost
conduct a study evaluating the market conditions $5,000 to$15,000 depending
average market value of vacant • Established fee that on the number of classes and
properties by class.The study developers can be firm selected
would take about 2 to 3 certain of • Potential for market lag
months to complete and could depending on the frequency
be paid for from park that City conducts study
dedication.This would be used
to set the fee amounts.
Require appraisal Require that the developer • Establishes fee at • Adds time to development
at time of submit an appraisal as part of exact land value process
development the final platting process.Fee • Reflects each unique • Additional cost for developer
collection would then be based situation —one firm estimated an
on that value. appraisal to cost$2,500+for
commercial/multi-family
projects
Sale Price of Require that the developer • Relatively simple to • May not include value gained
Property provide the sale price of the implement through entitlement process
property and use that value for • Sale may have occurred a
fee collection. significant time ago
• Potential for developers to
manipulate
Negotiation Require that each park • Uncertainty for • Potential to be challenging to
dedication fee be agreed to developers come to an agreement
through negotiation between • Starting point will still need
the developer and the City. to be established
• Staff time
0 Potential for legal challenge
Page 3
Method Overview Pros1
Allow developer Allow developer to select • Provides more legal • Will end up with lowest
to select from whether they want to use the protection as amount of park dedication
options park dedication fee or submit developers have possible. Impact depends on
an appraisal opportunity to select options provide.
preferred option
Require"higher" List multiple options and • Best potential to • Potential for legal challenge
of multiple require the one with the maximize park remains if options are not
options highest park dedication dedication with the based on market realities
amount be selected least amount of • Adds time and cost to
effort by City developer
City Staff and HKGi did attempt to quantify the difference between the various methods. However,the City
does not have enough example appraisals to do such a comparison. If such a comparison is desired,the City
may want to consider conducting an appraisal study as was described in the third option.Such a study would
cost between$5,000 and$10,000 and take two to three months to complete.
City Staff has considered all of the options and recommends that the City Council use the County Assessors
Value to estimated market value of the land for the collection of cash in lieu of the land dedication. Staff
recommends this method as it is the easiest to administer and is generally accepted in the planning and
development community.
Recommended City Code Revisions
Once direction is received from the City Council regarding the industrial park dedication, residential park
dedication,and methodology for the cash dedication, proposed ordinance amendments will be developed.City
Staff did review all of the references to park dedication to identify any additional changes needed.This review
identified the following needs:
1) As shown below the section regarding the use of the cash dedication specifically references the
payment of funds for trails.The City does not have a trail fee, nor does it intend to require fees
for trails.Thus, it is recommended that the sentence be struck to eliminate any confusion.
Sec.30-327. -Dedication of land or contribution of cash for public purpose
(e) Use of cash contributions. Any monies paid to the city in lieu of park dedication shall
be placed in a special fund and used only for the acquisition of land for parks,
playgrounds, trails, and public open space; for the development of such areas and sites;
and for debt retirement in connection with land previously acquired or developed for
such public purposes. Any monies specifically paid to the city for trails shall be used only
for the acquisition of land for trails and for the development of such land.
2) Currently the City Code requires that as part of the development process the Parks and
Recreation Commission advise the City Council on the acquisition of land.The vision identified in
the recent Parks and Recreation Master Plan is that the City will be emphasizing larger,
community parks rather than smaller, neighborhood parks over the next 20 years.To support
that vision, it is anticipated that more park dedication will be collected through the cash fee
rather than through land acquisition. Because the Parks and Recreation Master Plan provides
Page 4
clear direction regarding when park land is the preferred form of park dedication, Staff is
recommending that all references requiring Parks and Recreation Commission involvement in the
platting process be removed. Staff will continue to make a recommendation regarding park
dedication to the City Council and will use the Park and Recreation System Master Plan as a guide.
3) As shown below,the Open Space Preservation Plats requirements include specific provisions for
park dedication. Staff has reviewed that section and recommends that it be stricken.The
approach for park dedication for these plats will be the same as other residential plats.
Sec.30-515
(4) Park dedication fee requirements. Park dedication fee requirements shall be based
upon the total number of house lots platted if fees are paid in lieu of land.
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