6.1. PRSR 12-09-2015 - Laserfiche WebLink

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CI of Request for Action ' ver To Item Number Mayor and City Council 9.2 Agenda Section Meeting Date Prepared by Work Session November 16,2015 Zack Canton,Planning Manager Item Description Reviewed by Park Dedication Fee Update Cal Portner,City Administrator Reviewed by Action Requested Provide direction on the preferred method to calculate park dedication. Background/Discussion At the October 19,2015,City Council Work Session,Rita Trapp of Hoisington Koegler Group,Inc. (HKGi)presented recommendations for changes to the city's park dedication fee. The proposed changes to the fee schedule are to ensure compliance with state statute by linking the fee to the fair market value of the property. Staff reviewed eight different options,based on land value,which could be used to establish the fee and decided to use the county appraised value due to the low cost(free),ease of administering, and is a generally accepted method in the planning and development community. The alternative techniques evaluated closely were an appraisal study completed by an outside firm to establish a value for different land classes or requiring the developer to pay for an appraisal prior to final platting. The first option was not preferred as it would cost the city between$3,500 and$10,000. The study can be paid for with park dedication fees,but it will need to be updated periodically (every 3-5 years) to verify the fee is still a fair valuation of the land. The second option was not recommended as it adds another cost(beyond the park dedication fee itself) and additional time to the development process. The presentation by HKGi indicated a likelihood that the amount of money collected by the updated fee would decrease,but the size of the decrease cannot be identified with certainty. Council directed staff to review park dedication fees that have been collected over the past few years to get an idea of how much lower the park dedication fees would be with the recommended approach of using the county assessed value. Staff reviewed 15 residential plats,five commercial developments, and six industrial developments from 2006 to present A couple of the projects never came to fruition and a few are projects in concept review or are vacant property. The 2015 county assessed land value was used for comparing the current per unit fee to the proposed percent of value fee. Comparison Spreadsheet Residential Using our current park dedication fee schedule process,we collect an average of 29%of the assessed value on residential properties. Staff's recommendation is to collect 10, 13, or 16% (based on density)of the value of the property being developed,or an equal portion of land for park purposes. Although this is 10 II IN lite IT Template rpdated 4/14 NATURE