Laserfiche WebLink
Page 2 <br />Commercial and Industrial Dedication Rate <br />The City currently has a park dedication rate of ten(10)percent for commercial and industrial properties.As <br />was noted in at the June City Council Workshop,the park dedication survey HKGi completed this spring found <br />communities had park dedication rates ranging from two(2)to ten(10)percent with half using 10%.It is <br />recommended that the rate be maintained at 10%at this time. <br />Method of Cash in lieu Dedication <br />The fol lowing table was developed to provide an overview,as well as the pros and cons of each potential <br />method for collecting cash in lieu of a land dedication. <br />Method ON ciN ice% Pray oils <br />Set based on Use the fees set by other Easy to implement • May not be reflective ofreal <br />neighboring communities as the basis for • Ensures City is estate market <br />communities the fee in Elk River competitive Potential for legal challenge <br />as does not meet state <br />statute requirements <br />County Assessors Use estimated market value of • Easy to identify Lags behind marketplace so <br />Value the land for fee collection Generally accepted may collect too much or too <br />method little <br />Appraisal Study Hire an appraisal firm to More accurate to • Study estimated to cost <br />conduct a study evaluating the market conditions 5,000 to$15,000 depending i <br />average market value of vacant • Established fee that on the number of classes and <br />properties by dass.The study developers can be firm selected <br />would take about 2 to 3 certain of Potential for market lag <br />months to complete and could depending on the frequency <br />be paid for from park that City conducts study f <br />dedication.This would be used <br />to set the fee amounts. <br />Require appraisal Require that the developer • Establishes fee at Adds time to development <br />at time of submit an appraisal as part of exact land value process <br />development the final platting process.Fee • Reflects each unique • Additional cost for developer <br />collection would then be based situation one firm estimated an i <br />5 <br />on that value. appraisal to cost$2,500+for i <br />commercial/multi-family i <br />projects <br />Sale Price of Require that the developer • Relatively simple to • May not include value gained <br />Property provide the sale price of the implement through entitlement process <br />property and use that value for Sale may have occurred a <br />fee collection. significant time ago i <br />Potential for developers to <br />manipulate <br />Negotiation Require that each park Uncertainty for Potential to be challenging to <br />dedication fee be agreed to developers come to an agreement <br />through negotiation between Starting point will still need <br />the developer and the City. to be established <br />Staff time <br />Potential for legal challenge <br />i