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*1k of <br /> TO: PLANNING COMMISSION MEMBERS <br /> River FROM: STEPHEN ROHLF, B & Z ADMINISTRATOR <br /> DATE: JUNE 27 , 1989 9 <br /> SUBJECT: DISCUSSION OF PARK DEDICATION FEES <br /> FOR COMMERCIAL AND INDUSTRAIL <br /> DEVELOPMENT <br /> At the latest joint meeting of the Planning Commission and City <br /> Council, staff was directed to initiate Park Dedication Fees for <br /> Commercial and Industrial Development. Section 1008 .18 titled, <br /> "Dedication of Land or Contribution of Cash for Public Purposes" <br /> found on page 297 of the Elk River Code of Ordinances, already <br /> enables the City to collect park dedication for commercial and <br /> industrial development . Therefore, an ordinance amendment is <br /> not required for us to collect this fee, only an resolution <br /> establishing the fee. <br /> There are basically two ways for the City to collect this fee. <br /> First , is a flat fee per unit or lot . This is how we currently <br /> collect residential park dedication . This fee would be <br /> established by resolution by the City Council and when it needs <br /> to be changed a new resolution would have to be passed. <br /> (40 The second way to collect this fee is a percentage of the raw <br /> land value. To stay consistent in estimating the raw land value, <br /> if this approach is used, staff would recommend that the assessed <br /> value set by the County Assessor 's Office be used. <br /> I 've talked to Dick Fursman, Economic Development Coordinator for <br /> the City and we are both in agreement that the amount of Park <br /> Dedication that is charged for Commercial and Industrial <br /> development must not be so excessive as to hinder these types of <br /> development . If the percentage method is used , 10% has been <br /> found reasonable by the courts . I am not recommending that we <br /> charge 10% , but I 'm certainly recommending that we do not charge <br /> more than 10 percent . My personal preference is the pre unit <br /> charge , which enables staff to tell a potential developer up <br /> front what this fee will be. The attachments to this memo show <br /> park dedication fees from various cities to give the Planning <br /> Commission a feel for what should be charged. <br /> This is a discussion item for the Planning Commission . Staff <br /> felt is was appropriate that the Planning Commission give the <br /> Council recommendation on how the fee is charged and how much <br /> that fee is . Staff will take the Planning Commission 's <br /> recommendation and put it into resolution form and present it to <br /> the Council on July 17 , 1989 . <br /> 720 Dodge Avenue N.W., Elk River, Minnesota 55330 (612) 441-7420 <br />