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5a. Amendment to Chapter 18, Section 18-79 City Code Parkland Dedication Requirements 11 CITYOF 1 CHANHASSEN ' 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 (612) 937 -1900 • FAX (612) 937 -5739 Hcaon by City Adngnbl�Dr 1 — MEMORANDUM 1 TO: Don Ashworth, City Manager ° 1g kb %Witted Id odttitrilam FROM: Todd Hoffman, Park and Recreation Director We Submitted to cotM DATE: February 18, 1993 1 SUBJ: Amendment to Chapter 18, Section 18 -79 of the City Code Concerning Parkland Dedication Requirements 1 In addition to establishing 1993 park and trail dedication fee rates, the aforementioned section 1 of the City Code is in need of updating. As such, I have elected to wait and address these issues simultaneously. These amendments are important in that the development of Chanhassen is progressing. Vacant lands are disappearing and land costs are rising. It is the intent of this section of City Code to provide a means by which the planned acquisition of parkland (open space) can occur. Portions of the city's current ordinance and the current park and trail fee rates are lagging behind what is necessary to get the job done. The city is coming up short. Residents 1 and the community as a whole would eventually suffer if corrective actions are not taken. Parkland dedication, the granting of trail easements, and park and trail fees are a one time 1 commitment of the affected parties. The acquisition of a parkland, the creation of trailways, or the preservation of open space or natural lands, on the other hand, is an eternal action. We must remind ourselves that vacant land is the first and irreplaceable essential for parks. I have attached correspondence to and from City Attorney Knutson in this regard. This correspondence addresses Subparagraphs A, J, and L of Section 18 -79 of the City Code, and as 1 an addition to this section, Item T. The following explanations are given for these proposed amendments: Subparagraph A: Simply a clarification adding "trail fund" to the description. Subparagraph J: The existing subparagraph fails to address those situations when land in lieu of dedication fees, or a combination thereof, is desired as a part of a commercial/industrial development. The standards of 10% of market value or 10% of gross land is consistent with current practices. 1 1 Lt./ PRINTED ON RECYCLED PAPER 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 I Mr. Don Ashworth February 18, 1993 1 Page 2 Subparagraph L: This amendment is necessary to eliminate the designation of a dollar 1 amount for the trail fee as part of the ordinance. Retaining this designation requires that an amendment to the ordinance be passed each time a change in the fee is desired. The new subparagraph allows the trail fee, in addition to park fees, to instead be established 1 by annual resolution. Addition of Subparagraph T: The desire to see a functional trail system in Chanhassen I is high. Subparagraph T puts into action the city's Comprehensive Trail Plan by seeing to it that the trails represented under this plan become reality. The time honored I argument that trail "x" does not need to be constructed because, at present, it does not go anywhere no longer holds water. This short sighted (looking just 2, 3 or 4 years down the line) thinking wields great harm upon the future of the city's non - motorized I transportation system. Incremental improvements in and of themselves do not amount to anything, but combine these increments over a ten year period of time, and the city will really have something. Good analogies of this concept are numerous. Saving a little I every day and watching that savings grow is a good example. But if you wait for that one day to make "the big investment," that day never comes. I Recommendation Approval of the first reading of the subject ordinance amendment is recommended. I Attachments I 1. Letter to Roger Knutson dated February 2, 1993. 2. Letter from Roger Knutson dated February 3, 1993, and proposed amendments. 3. Existing Section 18 -79 of the City Code, Parkland Dedication Requirements 1 1 1 1 1 1 I CITYOF CHANHASSEN I : to 4 oir l ,0 0 ._ 1 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 (612) 937 -1900 • FAX (612) 937 -5739 1 MEMORANDUM 1 TO: Roger Knutson, City Attorney FROM: Todd Hoffman, Park and Recreation Coordinator I DATE: February 2, 1993 1 SUBJ: Parkland Dedication Requirements ' 1 First Question: Do we amend the ordinance or simply pass a resolution? I Amendment of the Ordinance: Subsection (1) references $138.00 as the city's trail fee. This fee has been increased by resolution on occasion since this writing. If this is cause for concern and you recommend adoption of a new ordinance, I offer the following proposed changes. The changes are in bold print. Section 18 -79. Parkland Dedication Requirements. 1 (a) As a prerequisite to subdivision approval, subdividers shall dedicate land for I parks, playgrounds, public open spaces and trails and /or shall make a cash contribution to the city's park fund and trail fund as provided by this section. (j) In plats other than residential plats, either a cash donation equal to ten (10) percent of the fair market value of the undeveloped property or ten (10) percent of the gross area of land being platted or a combination thereof, shall be paid I conveyed to the city. (1) In lieu of a trail donation, trail construction or trail easement dedication, the I city may require a cash donations for the multipurpose pedestrian trail system. The cash dedication requirement shall be established annually by the City Council. 1 For each lot or dwelling unit $138.00 Il 1 A. I LO PRINTED ON RECYCLED PAPER r 1 Mr. Roger Knutson February 2, 1993 1 Page 2 In addition, it would prove to be of great value to add a subsection which reads: I Subdividers of land abutting streets that have been designated in the city's Comprehensive Trail Plan for the installation of a trail shall be required to construct the 1 trail. An appropriate trail fee credit shall be granted in consideration of this construction. Or Pass a Resolution: If we decide to let the current ordinance stand, fees will be raised by I resolution. 1 1 1 1 1 1 1 1 1 1 1 1 1 1 CAMPBELL, KNUTSON, SCOTT & FUCHS, PA. 1 At tome\ • .0 1_.1« F 1 February 3, 1993 1 Mr. Todd Hoffman Chanhassen City Hall 690 Coulter Drive, Box 147 Chanhassen, Minnesota 55317 RE: Subdivision Ordinance Amendment Concerning Trail and Land Dedication Dear Todd: Enclosed please find the subdivision ordinance amendment you requested concerning trail and land dedication requirements. Please call if you have questions or comments. Very truly yours, ( CAMPBELL, TSON, SCOTT & FUCHS, P. . BY: Roger N. Knutson RNK:srn Enclosure 1 1 1 RECEIVED 1 t 0 4 1993 01- OF CHANHASSEN 1 • " l t l ,`ri ( i'.ir 1' i,'. • I _ 1 CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA ' ORDINANCE NO. AN ORDINANCE AMENDING CHAPTER 18 OF THE CHANHASSEN CITY CODE CONCERNING SUBDIVISIONS ' THE CITY COUNCIL OF THE CITY OF CHANHASSEN ORDAINS: ' Section 1. Subparagraphs (a), (j), and (1) of Section 18 -79 of the Chanhassen City Code are amended to read: 1 (a) As a prerequisite to subdivision approval, subdividers shall dedicate land for parks, playgrounds, public open spaces and trails, and /or shall make a cash contribution ' to the City's park fund and trail fund as provided in this section. (j) In plats other than residential plats, either a cash ' donation equal to ten percent (10 %) of the fair market value of the undeveloped property or ten percent (10 %) of the gross area of land being platted or a combination ' thereof, shall be conveyed to the City. (1) In lieu of a trail donation, trail construction, or trail 1 easement dedication, the City may require a cash donation for the trail system. The cash dedication requirement shall be established annually by the City Council. ' Section 2. Section 18 -79 of the Chanhassen City Code is amended by adding subparagraph (t) to read: (t) Subdividers of land abutting streets that have been designated in the City's Comprehensive Trail Plan for the installation of a trail shall be required to dedicate the land for the trail to the City and construct the trail. 1 An appropriate trail fee credit shall be granted. Section 3. This ordinance shall be effective immediately upon its passage and publication. PASSED AND ADOPTED this day of , 1993, by the City Council of the City of Chanhassen. ATTEST: 1 Don Ashworth, Clerk /Manager Donald J. Chmiel, Mayor 1 (Published in the Chanhassen Villager on , 1993). 3013 02/03/93 1 § 18.78 CHANHASSEN CITY CODE ( areas, facilities for sewage disposal, which meet applicable city ordinance require- , ments for individual sewage disposal systems must be provided. (9) A system that will adequately accommodate the surface water runoff within the subdivision, as required by this chapter, shall be provided. (10) Street signs of standard design approved by the city shall be installed at each street intersection. Regulatory signs shall be installed as required. ' (11) Where any proposed plat adjoins a natural lake, pond, river or stream, including streams which flow only intermittently, the city may require that a strip of land running along all sides thereof which are contiguous to such lake, pond or stream, be dedicated to the city for public use, or subject to a perpetual easement in favor of the city for the purpose of protecting its hydraulic efficiency and natural character and beauty. There shall also then be granted to the city the right of ingress to and egress from the dedicated land. (12) All utility lines for telephone and electrical service shall be placed underground or where this is not feasible shall be placed in rear lot line easements when carried on overhead poles. (c) Prior to the city signing the final plat and prior to the construction of any improve- ments, the developer shall provide the city with a letter of credit or cash escrow to insure that all improvements required by this chapter will be installed and paid for at no city expense. For improvements to be installed by the developer, the developer is obligated to install and complete all such improvements at his own expense and under the supervision and inspection of the city For improvements which the city agrees to install, the developer shall pay the cost of such improvements through payment of special assessments. As security to the city for installation of the improvements or the payment of the special assessments, the developer shall be required to file a cash escrow or letter of credit in an amount and form acceptable to the city to cover the cost of all public improvements and special assessments. (Ord No. 33 - D, § 9, 2- 25 -85; Ord. No 33 -E, § 1, 12- 15 -86) Sec. 18-79. Park land dedication requirements. (a) As a prerequisite to subdivision approval, subdividers shall dedicate land for parks, playgrounds, public open spaces and trails and/or shall make a cash contribution to the city's park fund as provided by this section. (b) Land to be dedicated shall be reasonably suitable for its intended use and shall be at a 1 location convenient to the people to be served. Factors used in evaluating the adequacy of proposed park and recreation areas shall include size, shape, topography, geology, hydrology, tree cover, access and location. (c) The park and recreation committee shall recommend to the city council the land dedication and cash contribution requirements for proposed subdivisions. 1 (d) Changes in density of plats shall be reviewed by the park and recreation committee for reconsideration of park dedication and cash contribution requirements. Supp. No. 1 1012 1 SUBDIVISIONS § 18 -79 (e) When a proposed park, playground, recreational area, school site or other public ground has been indicated in the city's official map or comprehensive plan and is located in ' whole or in part within a proposed plat, it shall be designated as such on the plat and shall be dedicated to the appropriate governmental unit. If the subdivider elects not to dedicate an area in excess of the land required hereunder for such proposed public site, the city may consider acquiring the site through purchase or condemnation. (f) Land area conveyed or dedicated to the city shall not be used in calculating density requirements of the city zoning ordinance and shall be in addition to and not in lieu of open space requirements for planned unit developments. (g) Where private open space for park and recreation purposes is provided in a proposed 1 subdivision, such areas may be used for credit, at the discretion of the city council, against the requirement of dedication for park and recreation purposes, provided the city council finds it is in the public interest to do so. (h) The city, upon consideration of the particular type of development, may require larger or lesser parcels of land to be dedicated if the city determines that present or future residents would require greater or lesser land for park and playground purposes. 1 (i) In residential plats one (1) acre of land shall be conveyed to the city as an outlet by warranty deed for every seventy -five (75) people the platted land could house based upon the ' following population calculations: Single - family detached dwelling lots 3 0 persons Two - family dwelling lots 6 0 persons ' Apartment, townhouses, condominiums and other dwelling units, per bedroom 1.0 person (j) In plats other than residential plats, a cash donation equal to ten (10) percent of the fair market value of the undeveloped property shall be paid. (k) In lieu of a park land donation, the city may require an equivalent cash donation based upon average undeveloped land value in the city. The cash dedication requirement shall ' be established annually by the city council. (1) In lieu of a trail land donation, the city may require the following cash donations for 1 the multipurpose pedestrian trail system: For each lot or dwelling unit $ (m) The city may elect to receive a combination of cash, land, and development of the land for park use. The fair market value of the land the city wants and the value of the development of the land shall be calculated. That amount shall be subtracted from the cash contribution required by subsection (k) above. The remainder shall be the cash contribution requirement. (n) "Fair market value" shall be determined as of the time of filing the final plat in accordance with the following: (1) The city and the developer may agree as to the fair market value, or 1 Supp. No. 1 1013 1 § 18 -79 CHANHASSEN CITY CODE (2) The fair market value may be based upon a current appraisal submitted to the city by the subdivider at the subdivider's expense. (3) If the city disputes such appraisal the city may, at the subdivider's expense, obtain 1 an appraisal of the property by a qualified real estate appraiser, which appraisal shall be conclusive evidence of the fair market value of the land. I (o) Planned developments with mixed land uses shall make cash and/or land contribu- tions in accordance with this section based upon the percentage of land devoted to the various uses. 1 (p) Park and trail cash contributions are to be calculated at the time building permits are issued and shall be paid when the permit is issued by the person requesting the permit. I (q) The cash contributions for parks and trails shall be deposited in either the city's park and recreation development fund or multipurpose pedestrian trail fund and shall be used only for park acquisition or development and trail acquisition or development. 1 (r) If a subdivider is unwilling or unable to make a commitment to the city as to the type of building that will be constructed on lots in the proposed plat, then the land and cash I contribution requirement will be a reasonable amount as determined by the city council. (s) Wetlands, ponding areas and drainage ways accepted by the city shall not be consid- ered in the park land and/or cash contribution to the city. (II (Ord. No. 85, § 2, 3- 14 -88) Editor's note — Section 2 of Ord. No. 85, adopted Mar. 14, 1988, amended the Code by adding a new § 18-78 thereto. Inasmuch as there already existed a § 18 -78, the editor has III designated the new provisions as § 18 -79. Cross references —Parks and recreation, Ch. 14; neighborhood park acquisition and improvement, § 14 -31 et seq.; official maps, § 15 -20 et seq. I 1 1 1 1 1 Supp. No. 1 [The next page is 1063] 1014 1 b C ITYOF - � CHANHASSEN 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 (612) 937 -1900 • FAX (612) 937 -5739 MEMORANDUM ' TO: Don Ashworth, City Manager FROM: Todd Hoffman, Park and Recreation Coordinator / V DATE: February 18, 1993 SUBJ: Approve Resolution Establishing 1993 Park and Trail Fees As previously explained, this issue is married to the proposed ordinance amendment in the same regard, and thus is not being addressed until now. The amended ordinance specifies that park and trail fees shall be established annually by City Council by resolution. For reasons expressed in my remarks concerning the ordinance amendment, the city's park and trail fees are in need of revision. The attached park dedication survey (courtesy of the City of Maple Grove) was completed in December 1992. Eight of the nine city's surveyed have fees higher than Chanhassen's. It is clear that all these cities are larger than Chanhassen, however, population does not enter into the calculation of these fees. Land values are the driving force. The rate of growth and value of land is very similar among all cities being compared. Park and trail fees are based upon the premise that the development which is creating the need for parks, open space, and trail systems should be responsible for satisfying those needs. The city's standard for this need is one acre of active parkland for every 75 persons, thus a 100 -acre residential development creates on average 75 acres for home sites at 2.5 homes per acre, with an average of 3 persons residing in each home. This development brings with it 563 new residents and they expect to have 7.5 acres of park to recreate in. Using a standard land cost of $20,000 per acre, the development of this land has to produce $150,000 in park fee revenues. Thus, each home needs to be assessed $800 in park fees. Trail fees are assessed at one -third the park rate, or in this example, $267 (the current trail fee is $167). This is one case study of the premise on which the city's park and trail dedication fees are founded. Obviously, there are many more examples of this same principle which using a myriad of different costs and numbers can be quantified. However, the results are similar and they point to the fact that the city's current fees are not producing the revenues needed to get the job done. Fees for multi- family units are established following the same criteria. Fees for commercial /industrial property are based on 10% of the land costs, which in recent times has to, PRINTED ON RECYCLED PAPER r 1 1 1 1 1 1 1 1 1 1 1 1 1 Mr. Don Ashworth February 18, 1993 1 Page 2 departed the $25,000 per acre figure and has topped $30,000 per acre. In addition to these 1 increasing costs, the necessity for the city to pay sales tax on purchases has resulted in lost purchasing power exceeding $10,000 annually in the area of park development. 1 Recommendation 1 It is recommended that the City Council establish the 1993 park and trail dedication fees as follows: Residential Single Family/Duplex Units $600.00/ unit Multi - Family /Apartment Units $525.00 /unit Commercial/Industrial Property $3,000 /acre 1 Trail Dedication Fees One -third of the cost of park dedication fees These fees are conservative in nature compared to the case study example, and are in the median range of the nine cities reporting on the survey. The current fees are: Residential Single Family/Duplex Units $500.00 /unit Multi- Family /Apartment Units $440.00 /unit Commercial/Industrial Property $2,500 /acre Trail Dedication Fees One -third of the cost of park dedication fees and have not been raised since December 1991. -- il City of 1 WMapleGmve 1 9401 Fernbrook Lane, Maple Grove, Minnemga 55369 G12 420.40( )( 1 i FACSIMILE TRANSMISSION \ \_iriiiiiiimio 1 _ . _ ......- --_... — Y :AX # 420 -7966 � TO: NAME C � Lik . - . ' ►ti ��• DATE 1 c � ADDRESS , PAGES TO FOLLOW, ' I COMPANY, _ FAX # FROM NAME U. Ira. r - 0 " `C TIME SENT DEPARTMENT C ;-3\2 S .0 , INITIAL t '', I MESSAGE _ /f � r r . ;r rr f r{,j r f f y Jl ,+ r, ::.f: rsf r f "r * x ::: •- r Y, �J . r r ' � Note to Facsimile r r fir - lr.: '''' '.rr %r- -! J� , . r !.: r ter•.^ 1, rfl•� . •rlf Operator: j r f:. 4 ., l r �'' " f " d r err j f • ' ' ; f j ^ •''. '.f..:7 y'' f rr ,�;f ` f ;" j ; f • . 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