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The cash dedication fee is established by multiplying the land dedication and the fair market value of the land. The fair market value for the current update was established with an appraisal study from. Patchin, Messner, Dodd, & Brumm. The study identified the average fair market value of three residential land classes in communities similar to Elk River. The fee, as included in the fee schedule, is described below: Low Density (<4 DU/ acre) $1,425.93/dwelling unit Medium Density (4 to <7 DU/ acre) $1,075.79/dwelling unit High Density (>7 DU/ acre) $4,897.04/dwelling unit The appraisal study will be completed every five years, or as market conditions warrant, to ensure consistent application of a fair land valuation. Specialized Housing Uses Staff recognizes and anticipates an increase in the development of facilities providing 24/7 care, such as assisted living, nursing, or memory care facilities, and that the park dedication impacts resulting from these facilities are not the same as other housing types. Staff views these types of facilities similar to commercial (service) or office uses, and recommends using the commercial dedication rates for these facilities. The dedication rate for facilities with a mix of independent and 24/7 care units will dedicate the proportionate share of the different uses. The same practice will be applied to other mixed -use facilities, commercial and residential uses for example. Commercial and Industrial Uses Current land dedication rates for commercial and industrial rates utilize a flat 10% rate, and cash rates are established annually in the fee schedule. The current proposal modifies both rates and is tied to the county assessed value of the property. Commercial and office uses will dedicate 8% o of the buildable land, or 8% of the county assessed value of the property. Industrial uses will dedicate G%a of the buildable land, or G%Q of the county assessed value of the property. The fee, as included in the fee schedule, is described below: Commercial Industrial 8% of county assessed value G% of county assessed value Financial Impact The proposed changes to the cash dedication rate will result in an overall decrease in the total amount of money collected. The goal of this update is to be in compliance with state statute, and reviews by the City Attorney and others show that this goal has been met. Attachments ■ Ordinance Amendment for Section 30-327 — Redlincd Copy • Ordinance Amendment for Section 30-327 — Clean Copy ■ Residential Park Dedication Calculations N:1Puhlic Bodieslrlgenda Packets\07-05-20141Final\7'.1 sr Park pedication.docx