5.5. SR 11-13-2006 - Laserfiche WebLink

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City of Elk River REQUEST FOR COUNCIL ACTION Agenda Section Meeting Date Worksession November 13,2006 Item Description 2007 Park Dedication Fees Item Number 5.5 Prepared by Bill Maertz, Parks and Recreation Director Reviewed by Introduction Request Council action for change in park dedication fees for 2007. Discussion State of Minnesota statute concerning park dedication fees requires that there be a "rational nexus" between park dedication and the long range plan for park capital spending. In order to gauge this rational nexus staff has reviewed Elk River's 10-year parks capital improvement plan in relation to park dedication revenue estimates. (see attached) Projections using the current park dedication fees, with 5% increases each year, indicate that there will be a shortfall of approximately $580,000 over the next ten years. Staff recommends changing the park dedication fee for residential to $3,600 per dwelling unit and changing commercial and industrial fees by 5%. Financial Impact 2006 Park Dedication Fees Residential $2940/ dwelling unit Commercial $6,300/ acre Industrial $2,100/ acre Proposed 2007 Park Dedication Fees Residential $3,600/ dwelling unit Commercial $6,615/ acre Industrial $2,205/ acre The proposed fee changes, along with annual 5% increases, will generate and additional $1,413,974 over the next ten years. This eliminates the $580,000 shortfall and provides additional funding for development of parkland not yet acquired. For example, the ten acre park planned for the Holzem property is not currendy budgeted for in the ten year CIP. This increase also ensures that there will be adequate funding for the $1,000,000 payment for Pinewood Golf Course in 2013. Attachments 10 year park capital improvement plan and park dedication revenue projections C: \Documents and Settings \ tallard\Local Settings \ Temporary Intemet Files \ OLKF\2007 Park dedication fees memo. doc