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2b. Park Dedication FeesCITYOF CHANHASSEN PO Bcx 147 C!!arXlaser~ MI,i 5531 Administration P%r,e 952227 l lRO Building Inspections Ph0rle: 952 227 !180 Fax 952227 Engineering Phone 952 227 1160 Fa× 952 227 1i70 Finance Phcac 952227 ~ !40 Fax: 952 227 ! 110 Park & Recreation Phone 952 2271120 Fax 952227 1110 Recreation Center 2310 Co/ter Bouievird Phone: 952227 1400 Fax: 952 2271404 Planning & Natural Resources Phone 952227! 130 Fax: 9522271110 Public Works 1591 Park Road Phoe 952227 1300 Fax 952 227 1310 Senior Center Phorlc: 952227 1125 Fax: 952227 !110 Web Site MEMORANDUM TO: FROM: DATE: Todd Gerhardt, City Manager Todd Hoffman, Park & Recreation Director December 31, 2003 SUB J: Adoption of Ordinance, Chapter 4, Chanhassen City Code, 2004 Park Dedication Fees ACTION REQUIRED A simple majority vote of City Council members present is required to adopt the amendment. BACKGROUND City Code Section 18-79 specifies that park dedication fees be established annually by the City Council. Park dedication fees are based on the fact that new housing, commercial and industrial developments generate increased demand for recreational offerings in a community. Chanhassen's standard for providing parkland that accommodates "active" play is one acre for every seventy-five residents. SUMMARY Establishment of the park fee rate is based upon the actual value of raw land in the community. Land values in Chanhassen have risen steeply over the past 10-15 years. Current prices range from $70,000 to $100,000+ per acre for all classes of undeveloped lands. I used the value of $70,000 per acre in establishing my recommendation. Residential Single Family/Duplex Units: In Chanhassen an average of 2.92 occupants reside in each single family home. Rounding this to 3 occupants per home, we gain 75 new residents for every 25 new homes constructed. Applying our standard of I acre of parkland for every 75 residents, the City must obtain another acre of parkland or increase the capacity for activity on an existing parcel of land to accommodate these new residents. That new acre of land will cost a minimum of $70,000, which translates to a park dedication fee of $2,800 per home ($70,000/25 homes). This is a $400 increase over the 2003 fee of $2,400 per home. 2004 Park Dedication Fees January 12, 2004 Page 2 Multi-Family/Apartment Units: Using an average of 2 occupants per dwelling, we gain 75 new residents for every 32.5 new multi-family housing units. Using the same calculation as above results in a park dedication fee of $2,154, which is rounded up to $2,200 per unit. This is a $200 increase over the 2003 fee of $2,000 per unit. Commercial/Industrial: Commercial and industrial properties are charged a park dedication fee established at a rate of 10% of the land value. Using $70,000 per acre, our Commercial/Industrial park dedication fee should be $7,000 per acre, which is the same as the 2003 rate. RECOMMENDATION Staff is recommending that the City Council adopt the attached ordinance for Chapter 4 of the Chanhassen City Code. ATTACHMENTS I. Ordinance Amending Chapter 4, Chanhassen City Code, 2004 Park Fees 2. City Council Minutes dated January 27, 2003 3. Resolution establishing 2003 park dedication fees 4. 2003 League of Minnesota Cities Park Dedication Fee Survey CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA ORDINANCENO. AN ORDINANCE AMENDING CHAPTER CHANHASSEN CITY CODE, THE CITY COUNCIL OF THE CITY OF CHANHASSEN, MINNESOTA ORDAINS: Section 1. Section 4-30 (c) 4 of the City Code, City of Chanhassen, Minnesota, is hereby amended to read as follows: 2004 Park Fees (varies with land use) - 100% of the fees are paid at time of final plat. Park Dedication Fees: Single-Family/Duplex Multi-Family/Apartment units Commercial/Industrial $2,800.00/dwelling $2,200.00/dwelling $7,000.00/acre Section 2. This ordinance shall be effective immediately upon its passage and publication. PASSED AND ADOPTED this 12th day of January, 2004, by the City Council of the City of Chanhassen, Minnesota Todd Gerhardt, City Manager Thomas A. Furlong, Mayor (Published in the Chanhassen Villager on ) City Council Meeting - January 27, 2003 Councilman Peterson: Second. Mayor Furlong: A second. Any discussion on the motion? Councilman Labatt moved, Couucilman Peterson seconded to approve the preliminary and final plat for Old Village Hall Addition with Lot 2 becoming Outlot B, as depicted in plans prepared by Otto Associates, dated 9/12/02, revised 12/23/02, subject to the following conditions: 1. Revise the plat name to Old Village Hall Addition. 2. Record cross access agreement for Outlot B and the Re/Max site across Lot I. 3. Record a parking agreement for Outlot B against Lot 1. The property line between Lot I and Outlot B must be a minimum of ten (10) feet away from the existing Old Village Hall building. All voted in favor and the motion carried unauimously with a vote of 4 to 0. CONSENT AGENDA: Mayor Furlong: Why don't we move at this time to those items that were pulled off the consent agenda. Take them, well let's take them in order unless based upon discussion...move them around, l(a)(l). Park dedication fees. Councilman Lundquist. Councilman Lundquist: Mr. Mayor, the reason I asked for this one to be removed is these are fees that we typically, that we do charge to developers...developments and they go towards constructing new parks and trails and services for the community and staff recommendation, with all the follow-up comparisons to communities in the metro area, some of similar size or bigger size, vary in ranges. Staff's recommendation was that we have single family units that charge $2,200 a unit, multi at $1,800 a unit and commercial at $7,000. In looking at the back-up in the pages and the spreadsheets, in comparable communities to our's that have an extensive trail system and extensive parks and value that park and open space as much as Chanhassen does, I think that our, given the cost of our land that we need to acquire to build those, I'd like to see the fees go to the proposed residential single family at $2,400 a unit, multi at $2,000 a unit, and commercial to be left at staff recommendation, $7,000 an acre. Mayor Furlong: Okay. Any other discussion on this item? If not, I guess I will discuss with you with regard to your, the issue raised. My concern is, I certainly appreciate the concern is that these directly impact the price of the homes in our city and that is an issue. Home prices are rising and the more fees that the city imposes to the developer will be passed along with higher prices and that's a concern I have with this. Though at the same time our parks are important and we need to adequately fund them and maintain them so, I'm concerned about it and I just wanted to express that concern at this time and thc impact it has. If there's no other discussiou, do you want to make a motion in that regard? Councilman Lundquist: Motion to approve resolution establishing park dedication fees at residential single family/duplex $2,400 a unit, multi-family/apartment units $2,000 a unit, commercial/industrial properties, $7,000 an acre. And also that we amend Chapter 18, Article IV 19 City Council Meeting - January 27, 2003 of the Chanhassen City Code concerning parkland dedication requirements as detailed in the ordinance amendment page. Mayor Furlong: Okay. Is there a second to the motion? Councilman Peterson: Second. Mayor Furlong: Is there any other discussion on the motion? Resolution #2003-19: Councilman Lundquist moved, Councilman Peterson seconded that the City Council combiue park and trail dedication lees into one "park dedication" fee and establish the 2003 rates as follows: Residential Single Family/Duplex Uuits Multi-Family/Apartment Units Commercial/Industrial Property $2,400/unit $2,000/unit $7,000/acre Additionally, amend Chapter 18, Article IV of the Chauhassen City Code concerniug parkland dedicatiou requirements as detailed in the attached ordinance amendment. Ail voted in favor and the motion carried unanimously with a vote of 4 to 0. Mayor Furlong: Item l(a)(6). Councilman Labatt. Fee structure roi' vehicle lock-out. Councilman Labatt: i've had a problem with this since we discussed talking about it and I just wanted to pull it roi' separate consideration. I don't think we should be charging our residents who lock themselves out of their vehicle but. Mayor Furlong: Okay. Is there any other discussion on this matter? If there's not, is there a motion to, is there a motion? Councilman Peterson: Motion to approve. Mayor Furlong: Is there a second? Councilman Lundquist: Second. Mayor Furlong: Any discussion? Resolution #2003-20: Councilnmn Peterson moved, Councilman Lundquist seconded to approve charging $50 per incident for vehicle lock-out services provided by the City of Chanhassen. All voted in favor, except Councilmau Labatt who opposed, and the motion carried with a vote of 3 to 1. Mayor Furlong: Item l(b). Councihnan Lundquist. This is regarding approval of plans and specifications and authorize advertising roi- bids, City Center Commons. Councilman Lundquist: Thank you Mr. Mayor. The reason I asked for this item to be removed is for comment on what this item actually is and the significance of it. This is the park around our new library and the old bank building and all the areas surrounding it and quite a bit of effort and expensive design work and landscaping has gone into putting this park together. It looks like a fabulous design. It's really going to finish off the library and make it a great area fol' the 2O CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA DATE: ,)anuary 27, 2003 RESOLUTION NO: 2003-19 MOTION BY: Peterson SECONDED BY: Lundquist A RESOLUTION ESTABLISHING PARK DEDICATION FEES WHEREAS, City Code Section 18-79 specifics that park dedication fees be established annually by the City Council; and WHEREAS, the last time these fees were raised was in 2001; and WHEREAS, the park and trail fees, currently being assessed independently, will be combined into one park dedication fee. NOW, THEREFORE, BE IT RESOLVED that the Chanhassen City Council combine park and trail dedication fees into one "park dedication" fee and establish the 2003 rates as follows: Residential Single Family/Duplex Units Multi-Family/Apartment Units Commercial/Industrial Property $2,400/unit $2,000/unit $7,000/acrc Passed and adopted by the Chanhasscn City Council this 27th day of January 2003. ATTEST: T/odd Gerhardt, City Manager YES Thomas A. Furlong, Mayor NO ABSENT Furlong Labatt Lundquist Peterson NOlle Ayotte PARK DEDICATION COMMERCIAL/INDUSTRIAL CITIES 0 - 2,500 Excelsior 1,500/lot Spring Park na Sunfish Lake na Woodland na CITIES 10,000 Afton na 10% of land value Arden Hills 6-8% of land or 6-8% land of market value Centerville city has detail Circle Pines 10% of land value Corcoran 2,000 Dayton 3,000/acre Deephaven na Falcon Heights na Farmington land 5% based on apraisal Forest Lake 7% of land or 1,500/unit created na Ham Lake na Hugo 1,800 Independence 2%-10% depending on number of acres Jordan 10% of land or cash value Lake EImo 1,500/lot up to 3 lots Little Canada 10% land or 5% fair market value Mahtomedi 7% of gross area subdivided Mound 1,100 or 10% of mrkt value of land whichever less New Prague valuation x .0025 Newport na Norwood Young A 3,000 Oak Grove na Oak Park Heights varies per proposed project Qrono 8% minimum 8,125 + maximum 13,875 Osseo 500/per unit or lot Shorewood na St. Anthony na St. Francis 1,15011ot St. Michael 3,000/unit comm 2,000/unit industrial St. Paul Park na Victoria city has detail Waconia 3,300/acre Wayzata 3.5% of land value CITIES 10,000 - 20,000 Andover Anoka Champlin Chanhassen Columbia Heights Hastings Hopkins Lino Lakes 10% of market value of land na 10,000/acre/comm 8,000/acre/industrial 7,000/acre in process of being set 1,200/ac Indus 1,500/ac corem based on valuation 2,175/acre 151 Mendota Heights Mounds View North St. Paul Northfield Prior Lake Ramsey Robbinsdale Rosemount Savage Shakopee Stillwater West St. Paul 10% raw load value 10% market value na na 3,550/acre city has detail 2 acres land per 100 lots/or dwelling units 90,000/45,000 7,000/acre 4,470/acre na nf CITIES OVER 20,000 Apple Valley Blaine Bloomington Brooklyn Center Brooklyn Park Burnsville Coon Rapids Cottage Grove Crystal Eagan Eden Prairie Edina Fridley Golden Valley Inver Grove Hgts. Maple Grove Maplewood Minnetonka New Brighton New Hope Oakdale Plymouth Richfield Roseville Shoreview South St. Paul St. Louis Park St. Paul White Bear Lake .00955 per employee @75-200,000 per acre 5,000/acre comm 3,400/acre Ind city has detail na 6,500/acre city has detail 3,350/acre city has detail 1,000/acre city has detail na 8% raw land value .023/sq ft determined by staff and city attorney na 6,500/ac comm 5,000/ac ind. 9% of the market value of the property 5,475/acre indus 5,700/acre commercial nf na 2,200/acre 6,400/acre na 4% assessed land value or 4,500/acre 10% of total area proposed for development na na na 2,500/acre PARK DEDICATION RESIDENTIAL CITIES 0 - 2,500 Excelsior Spring Park Sunfish Lake Woodland CITIES 10,000 Alton Arden Hills Centerville Circle Pines Corcoran Dayton Deephaven Falcon Heights Farmington Forest Lake Ham Lake Hugo Independence Jordan Lake Elmo Little Canada Mahtomedi Mound New Prague Newport Norwood Young A Oak Grove Oak Park Heights Orono Osseo Shorewood St. Anthony St. Francis St. Michael St. Paul Park Victoria Waconia Wayzata 1,500/lot na na nf 5,917/rr 2,650/Ag 6-8% of land or 6~8% of market value city has detail 10% of value of property 1,000 1,500/dwelling 10% of assessed lot value of new lots 800 12.5%/land based on appraisal 1,500/unit or 7% of land 2,100 1,8OO 2%-10% depending on number of acres .25% of estimate bldg cost 1,500/lot up to 3 lots 625/sgl faro lot 1,250/duplex 312.50/condo city has detail 1,100 or 10% of mrkt value of land whichever less valuation x .0025 ga 1,250 1,725/Iot or 10% dedication of land varies per proposed project 8% min 3,250 + maximum 5,550 500/per unit or lot 1,500/unit 750 850/Iot 2,000/unit na city has detail 4,400/acre 450 or 7% of land value up to 2,000 CITIES 10,000 - 20,000 Andover Anoka Champlin Chanhassen Columbia Heights Hastings Hopkins Linc Lakes 2,155/unit na 2,200/housing unit 2,000/unit for multifam apt units 2,400sgl fam dup in process of being set 750/unit? 9-15% 500 S.F. 200/unit NF 1,665/unit 152 Mendota Heights Mounds View North St. Paul Northfield Prior Lake Ramsey Robbinsdale Rosemount Savage Shakopee Stillwater West St. Paul 1,500/ea new lot )ess than acre/5% m.v. over acre 10% mv na na 1,685 city has detail 2 acres land per 100 lots/or dwelling units 45,000/acre 1,900/dwelling 2,660/sgl fam 2,200/unit for multi- fam and apts na nf CITIES OVER 20,000 Apple Valley Blaine Bloomington Brooklyn Center Brooklyn Park Burnsville Coon Rapids Cottage Grove Crystal Eagan Eden Prairie Edina Fridley Golden Valley Inver Grove Hgts. Maple Grove Maplewood Minnetonka New Brighton New Hope Oakdale Plymouth Richfield Roseville Shoreview South St. Paul St. Louis Park St. Paul White Bear Lake .00955 acre per resident@85- 100,000/acre 1,700/unit city has detail na 2,700/lot city has detail 1,117/unit sgl fam 950/unit 2 fam 750/unit muir fm city has detail 1,000/dwelling unit city has detail na 8% raw land value 1,500/Iot plat/subdivision 750/Iot split varies, 1,000/per new lot typically na 2,600/unit 1,530/sgl 2,430/dbl 1,125/mtr hm 1,215/twnhs 2,375/Iot sgl fam+10 units high density & multi-fro 1,000/unit na 1,000/unit 2,300/dwelling unit na 500/sgl faro 400/unit-twnhm/dup 350/multi lam 300 Da na Da 500/unit