2b. Park Dedication FeesCITYOF
CHANHASSEN
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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