11.2 SR 10-02-2023
Request for Action
To Item Number
Mayor and City Council 11.2
Agenda Section Meeting Date Prepared by
Work Session October 2, 2023 Zack Carlton, Community Development Director
Item Description Reviewed by
Park Dedication Fees Cal Portner, City Administrator
Reviewed by
Action Requested
Provide staff direction regarding updates to the city’s Park Dedication Fee.
Background/Discussion
In 2016, at the direction of legal counsel and in response to recent changes to state statute regarding park
dedication requirements, the City Council adopted an updated Park Dedication Ordinance and Fee. The fee is
based on several factors, including the Parks and Recreation Master Plan, housing density, and the market value of
undeveloped land. The market value can, and should, be updated periodically to adjust to the current market
demands and the economy.
The City Council reviewed an updated market study and a proposed fee schedule update in 2020 but did not
update the fee at that time. The proposed changes would have increased the park dedication fee for single-family
and townhome developments and reduced the fee for apartment projects.
We are reviewing changes to the 2024 fee schedule and would like direction from the Council regarding a possible
update to the Park Dedication Fee. Land values have increased significantly since 2020, and we would expect the
appraisal study and subsequent fee recommendations to follow that trend. The costs of park improvements and
development have increased, and the park dedication fee is one of the main revenue streams for those
improvements.
If the Council supports a fee schedule update, staff will solicit bids for a market study and bring a contract forward
for Council approval later this fall.
Financial Impact
An increase in the Park Dedication Fee will support continued growth and development of the city’s parks.
Mission/Policy/Goal
Provide high quality park and recreation amenities for residents.
Attachments
None
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional
service, and community engagement that encourages and inspires prosperity.
Updated: January 2023
Current Park Dedication Rates
Low Density 0.0846 x $ 16,855.00 = $ 1,425.93 cash dedication per residential unit
Med. Density 0.054 x $ 19,922.00 = $ 1,075.79 cash dedication per residential unit
High Density 0.0474 x $ 103,313.00 = $ 4,897.04 cash dedication per residential unit
2020 Park Dedication Calculations
Assumptions
2.82, 1.80, and 1.58 Average Household size for City of Elk River
0.03 Acres of park land per residentd as identified by the Parks
and Rec Master Plan
$ 41,164.00 Mean per acre value of low density residential land
$ 64,750.00 Mean per acre value of medium density residential land
$ 156,640.00 Mean per acre value of high density residential land
Land dedication requirement
Class HH Size Park/Res. Land Dedication Requirement
Low Density 2.82 x 0.03 = 0.0846
acres of land per residential unit
Med. Density 1.8 x 0.03 = 0.054
acres of land per residential unit
High Density 1.58 x 0.03 = 0.0474
acres of land per residential unit
Cash Dedication required
Class Land Req Land Value Cash Dedication Requirement
Low Density 0.0846 x $ 41,164.00 = $ 3,482.47
cash dedication per residential unit
Med. Density 0.054 x $ 64,750.00 = $ 3,496.50
cash dedication per residential unit
High Density 0.0474 x $ 111,557.00 = $ 5,287.80
cash dedication per residential unit
2024 Park Dedication Calculations
Assumptions
2.82, 1.80, and 1.58 Average Household size for City of Elk River
0.03 Acres of park land per residentd as identified by the Parks and Rec Master Plan
$ 41,164.00 Mean per acre value of low density residential land
$ 64,750.00 Mean per acre value of medium density residential land
$ 156,640.00 Mean per acre value of high density residential land
Land dedication requirement
Class HH Size Park/Res. Land Dedication Requirement
Low Density 2.82 x 0.03 = 0.0846 acres of land per residential unit
Med. Density 1.8 x 0.03 = 0.054 acres of land per residential unit
High Density 1.58 x 0.03 = 0.0474 acres of land per residential unit
Cash Dedication required Projections Only
Class Land Req
Land Value Cash Dedication Requirement
Low Density 0.0846 x
$ 56,806.32 = $ 4,805.81
cash dedication per residential unit
Med. Density 0.054 x
$ 89,355.00 = $ 4,825.17
cash dedication per residential unit
High Density 0.0474 x
$ 216,163.20 = $ 10,246.14
cash dedication per residential unit