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Template Updated 4/14 <br />Request for Action <br /> <br /> <br />To <br />Mayor and City Council <br />Item Number <br />9.3 <br />Agenda Section <br />Work Session <br />Meeting Date <br />December 21, 2015 <br />Prepared by <br />Zack Carlton, Planning Manager <br />Item Description <br />Park Dedication Fee <br />Reviewed by <br />Michael Hecker, Parks and Recreation Director <br />Reviewed by <br />Cal Portner, City Administrator <br /> <br />Action Requested <br />Provide direction on the preferred method to calculate park dedication. <br /> <br />Background/Discussion <br />At the November 16, 2015, City Council meeting, staff outlined potential impacts to the Park Dedication <br />Fee by studying estimated present day valuations of a variety of projects from the past 10 years. The <br />study assumed a flat 10% fee for commercial and industrial plats and a scaled fee of 10-16% for <br />residential plats, based on density. The findings of the study show a reduction in park dedication fees <br />collected, but ensures the city complies with state law. <br /> <br />The City Council directed staff to provide an update to the Parks and Recreation Commission and receive <br />feedback regarding the proposed changes. Staff presented information about the various options for <br />collecting park dedication fees during their December 9, 2015, regular meeting. The commission <br />understood the need for changes to the park dedication fee structure, and recommended completing an <br />appraisal study to establish a fair market value, at least for the residential land classes. <br /> <br />Staff will review the options available for one, establishing a fair market value of specified land classes, <br />and two, identifying the collection rate to apply to each of the land classes. Staff is seeking direction for <br />both, but the question that should be answered during the discussion is how to establish the fair market <br />value. If an appraisal study is desired, the city will solicit bids and hire a consultant to complete the study. <br />If direction is to use the County Assessor’s value, additional studies or discussion regarding fair market <br />value is not required. <br /> <br />Financial Impact <br />If directed, an appraisal study will cost between $3,500 and $10,000, which can be paid for with Park <br />Dedication Funds. Follow-up studies will also need to be completed every 3-5 years to re-establish the <br />fair market values of each land class. <br /> <br />Attachments <br /> Parks and Rec Staff Report dated December 9, 2015 <br />