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Memo - Park Dedication MEMO To: From: Date: City Council & Park Board Nancy Anderson Subject: August 25, 2005 Park Dedication I. BACKGROUND The City requires that when a lot is re-platted or platted for new development a park dedication is required. The state statue allows a city to have land dedicated for public use or a cash payment in lieu of dedicated land. The theory for park dedication is that with new construction there is more stress on existing park and public facilities, and if there is land available, new public space should be created, and if there is not a land donation, the existing public space can be improved. II. STATUTORY/ORDINANCE REQUIREMENTS. The statutory requirements can be summarized as follows: 1. The parkland dedication requirements and the methodology used to arrive at the requirement must be established by ordinance. 2. The city may accept either land or an equivalent amount in cash, based on the fair market value of the land, 3. Any cash payments received must be separately accounted for and used only for the purposes for which they were obtained, 4. Any cash payment may not be used for ongoing "operation or maintenance." 5. The city must "reasonably determine" that the land or cash payment is needed to meet the increased demands of the new subdivision. 6. There must be an "essential nexus" between the fees or dedication and purpose sought to be achieved by the fee or dedication, and the fee or dedication must bear a "rough proportionality" to the need created by the proposed subdivision or development. The Hopkins ordinance for park dedication requires a fee or land when there is a plat or replat and the land allows for development or redevelopment. The following are the requirements: Proposed density percentage of land to be dedicated 0-5 units 6-10 units 11-16 units 16 plus Commercial, Industrial and other subdivisions 10 percent 11 percent 12 percent 13 percent 5 percent Cash in lieu of land dedication Single family $1000,00 per unit Multiple units $800,00 per unit Because Hopkins does not have land to create new parks, the City has taken cash for new developments to improve existing facilities. III. EXAMPLES Thermotech was not required to pay a park dedication fee because the new lots that were created were not buildable lots, Each had an existing building. In contrast Mike Halley will be required to pay a park dedication fee for the second phase of Oak Ridge Place because there will be a new buildable lot created, but the property that Eisenhower Community Center is located on is not required to pay a park dedication because a new buildable lot was not created. Mathwig Development was required to pay a park dedication on the former Hopkins House site and the Starbucks coffee site because both sites have either redevelopment or new development. Minnetonka has similar requirements to Hopkins regarding park dedication fees. Minnetonka's ordinance states the following: "". shall apply to all new development, redevelopment, lot combinations/redivision meant to facilitate development, redevelopment, and expansion of commercial, office, or industrial buildings." IV. OTHER CITIES' PARK DEDICATION ORDINANCES Eden Prairie 1. The owner of land being subdivided shall dedicate to the public for public use as parks, playgrounds or public open space a reasonable portion of the land up to 10% thereof, as determined by the City to be in the public interest and necessary for such uses. 2. At the City's option, the subdivder shall contribute an equivalent amount in cash in lieu of all or a portion of the land which the City may require such owner to dedicate pursuant to subdivision 1 hereof in accordance with the schedule to be set by resolution of the Council. Edina As a result of approval of the plat or subdivisions, then as to such plat or subdivision, a reasonable portion of the land therein shall be dedicated to the public or preserved for conservation purposes or for public use as parks, playgrounds, trails, wetlands or open space, provided that, at the option of the City, the owner or owners shall contribute to the City an amount of cash equal to the fair market value of the land otherwise required to be so dedicated or preserved, or dedicate and preserve a part of such land and contribute the balance of such land value in cash. Minnetonka The owners of and being subdivided shall dedicate to the city a reasonable portion of the land for use as public parks, playgrounds, trail or open space, Generally, the reasonable portion should not be less than 10 percent of the total land in the proposed subdivision. The city may determine the location and configuration of any land dedicated, taking into consideration the suitability of the land for it intended purpose and future needs of the community for park, playground, trail, or open space property. At the city's option, the subdivision must contribute an amount in cash, in lieu of all or a portion of the land required under subdivision 1, according to the following fee schedule. Lakeville As a condition of subdivision approval, subdividers shall dedicate a portion of any proposed subdivision for conservation purposes or for public use as parks, recreational facilities as defined and outlined in Minnesota statutes section 471.191, playgrounds, trails, wetlands, or open space; provided that the city may choose to accept an equivalent amount in cash for part or all of the portion required to be dedicated based on the fair market value of the land at the time of final approval. V. CONCLUSION Some of the improvements that have taken place because of the park dedication fees are the stage in Downtown Park and Burnes Park play equipment. Improvements in the future with the use of park dedication fees are Valley Park Improvements in 2006, $40,000 for parking addition, and $45,000 for hockey rink upgrade, Recently the park dedication fees and land requirements were reviewed with metro cities and were found to be comparable. The City Council also has the discretion to waive the park dedication fee. The City's ordinance has the following section: "The City Council, at its discretion, may waive or reduce the requirement of this section when the subdivision includes a City-assisted development or redevelopment area or achieves some other public purpose and the requirements would create a financial hardship for the project."