Memo - Park Improvement FundingPublic Works Department
Memorandum
To: Honorable Mayor and Members of the City Council
From: Steven J. Stadler, Public Works Director
Copy: Mike Mornson, City Manager
Date: February 6, 2012
Subject: Park Improvement Funding
The Park Board is concerned about the funding forecast for the Park Improvement Fund.
Unless additional revenue is found it will be increasingly difficult to fund park projects and
continue to meet residents' expectations in regards to the condition of the parks. Many of
the structures and much of the play equipment is 20+ years old - upgrades or
replacements will be needed within the next 10 years. Even with the relatively recent large
infusion of funds via the Excelsior Crossings and MarketPlace and Main developments
($380,475) and the projected $80,000 in 2012 from the Klodt redevelopment, the fund
could run out in 2013. The possible options to increase funding for future park
improvements are:
- Increase park dedication fees
- Park renewal referendum (1989 park system improvement referendum - $3.5 M)
- Supplement park dedication fees from general tax levy
Park Dedication Fees
A recent survey of what area city's are charging developers in park dedication fees reveals
that our residential fee of $800/unit (greater than 3 units) is the lowest and is just over one-
half the second lowest fees of $1,500/unit (Fridley and St Louis Park). St Louis Park also
charges a $225/unit fee for a trail dedication fund. The average residential fee based on
the City of Roseville, November 2011 survey of 24 area cities was $3,933/unit. The Cities
of Edina and Minnetonka charge $5,000/unit.
Our policy for commercial redevelopment is 5% of fair market value of the land. For
instance on the Excelsior Crossings project we received about $10,000 per acre as the 31
acre site was valued at about $200,000 per acre. According to the city assessor, the
range of commercial property values is $10-$20/SF and industrial $5-$7/SF. For instance,
the Mayon Plastics site is assessed at $20/sf, or $745,820 for the site land value. The
park dedication fee from this site redevelopment would be $37,000. The average fee
based on the Roseville survey results is about $8,000/acre. However, there are several
communities that have fees higher than 5% FMV — Maple Grove, Maplewood, Shoreview
and Mounds View.
The Park Board would like the City Council to consider an increase in our residential fees.
It doesn't seem unreasonable to raise our fees to a level closer to the $3,933/residential
unit average.
Park Renewal Levy Referendum
It is not unusual for cities to periodically put together a park renewal program with an
associated referendum -approved levy. Hopkins' previous park renewal levy was in 1989;
the $3.5 M levy was used for construction of the Pavilion, Maetzold Field improvements
and new play equipment at several parks.
If City Council is interested, the Park Board could put together a proposed park renewal
program for future year consideration. We could also consider including a related
question in the upcoming 2012 City-wide resident survey, i.e. something like: "Would you
be in favor of the concept of a new multi-year tax levy with the sole purpose of improving
city park facilities and play equipment?" There would have to be some background
information on park needs (age of structures, play equipment, lighting, etc.) that would go
into that question, as well.
Staff and Park Board member/s will be present to discuss and answer questions.
Atchs:
1. Park Improvement Fund Working Capital report
2. Roseville survey results
PARK CAPITAL IMPROVEMENTS FUND (301)
1/23/2012
Actual
Actual Actual Projected Projected
Projected Projected
Projected
2009
2010 2011 2012 2013
2014 2015
2016
Working Capital Beginning Year
357,936
246,523 232,628 108.071 38,152
(7,467) (83,541)
(64,377)
Revenues:
Taxes (from matured Park Bonds) 0
0 1,346
Interest
4,740
1.520 1,236 1,081 382
(75) (835)
(1,931)
Dedication fees
0
0 0 80,000 20,000
20,000 20,000
20.000
Hennepin County Youth Grant
150,000
Grant - Twins Community Fund
30,000
Donations - general
2,526
1,000 0 1,000 1,000
1,000
Donations - benches
700
Transfer in - close out debt fund
2,981
Total Revenues
7,966
2,520 5,163 262,081 21,382
20,925 19,165
18,069
Expenditures:
C.I.P. Projects
119,379
16.414 122,721 120,000 60,000
90,000 0
Maetzold Field Improvements
205,000
Skate Park
7,000 7,000 7,000
7,000
Ice Arena
Total Expenditures
119,379
16,414 129,721 332,000 67,000
97,000 0
0
Working Capital Year End
246,523
232,628 108,071 38.152 (7,467)
(83,541) (64,377)
(46,308)
2019 Proiecfs
4,175
Admin costs for General Fund personnel
66,412
Shady Oak Beach Play Area Renovation - total due
3,948
Shady Oak Beach Play Area Renovation - 2f3rds to be billed to Mtka
19,420
Valley Park Basketball Courts - done, this is actual cost
3,716
Miscellaneous Park Improvements - Cottageville Park water line and grills for parks
25,050.
Park Shelter Roofs - Maetzold, Harly Hopkins, Central
7.000
Skate Park improvements
129,721
2012 Projects
55,000
Valley Park Play Equipment
45,000
Cottageville Park play equipment
10,000
Miscellaneous Park Improvements
7,000
Skate Park improvements - Yr 1 of new 3 yr agreement
127,000
2093 Projects
60,000
Oakes Park Play Equipment
7,000
Skate Park improvements - Yr 2 of 3 yr agreement
67,000
2094 Projects
45,000
Park Valley Play Equipment
45,000
Hilltop Park Play Equipment
7,000
Skate Park improvements - Yr 3 of 3 yr agreement
97,000
2095 Projects
none - Depot Recreation Area - all funding OGU or grants
2016 Proiecfs
none
-
Comparative Park Dedication Data
Prepared for: The Roseville Parks and Recreation Commission
Data current - November, 2011
City
Residential
Commercial
Andover
$2,935 per unit
$8,956p er acre or 10% FMV which ever is less
Blaine
$2,435 per unit
$7,163 per acre
Brooklyn Center
None
None
Brooklyn Park
$4,600 per unit
$7,600 per acre
Burnsville
$2,860 per unit
$16,000 per acre
Chanhassen
$5,800 per unit
$12,500 per acre
Champlin
$4,284 per unit
$8,160 per acre
Cottage Grove
$4,200 per unit
4% FMV
Eden Prairie
$6,500 per unit
$11,500 per acre
Falcon Heights
FMV equal to 8-10% Land Value
FMV equal to 10% Land Value
Fridley
$1,500 per lot
$1,000 per acre
Inver Grove Hts.
$4,011 per unit -
$6,000 per acre
Lakeville
$4,747 per unit
$7,693 per acre
Little Canada
$2,600 per unit
5% FMV
Maple Grove
$4,875 per unit
$11,000 per acre
Maplewood
$3,540 per unit
9% FMV
Mounds View
10% FMV
10% FMV
Plymouth
$6,500 per unit
$8,000 per acre
Richfield
None
None
Roseville
$3,000 per unit
5% FMV
Shakopee
_
$5,340 per unit
$6,930 per acre
Shoreview
10% FMV
10% FMV
St. Louis Park
$1,500 per unit
5% FMV
Woodbury
$3,500 per unit
$6,000 per acre
AVERAGE
$3,933 per unit
$8,464 per acre
January 2012 survey of park dedication fees — cash contribution only
Citv Residential Development Commercial/Industrial Development
Hopkins $1,000/unit 5% of fair market value (FMV) of land
,$800/unit (greater than 3 units)
Maple Grove (FMV of residential property/acre) X
10% divided by average residential
development density (units/acre)
St Louis Park $1,500/unit
+ $225/unit trail dedication fee
7.5% of FMV of land
5% of FMV of land
Golden Valley 1 % of FMV of land 1 % of FMV of land
Edina $5,000/unit $7,100 per buildable acre
Minnetonka Single Family: $5,000/per lot Office/industrial: $7,000 per acre
Multi family: $5,000 per unit Commercial: $8,000 per acre
Plymouth Max of $6,500 per unit Max of $8,000 per acre