05-05-2014 Park Commission Packet

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November 2011 Park Fee Analysis Update P. 2 2001 Ranee Establishment Because of the vastly differing land values in Orono, the application of the general 8% park dedication requirement would result in properties with lower values paying less than the $4,630 average and properties with higher values paying more than the $4,630 average. The Cash Contribution was established at the fair market value of the 8% of land that would have otherwise been contributed. The establishment of a minimum and maximum park dedication fee amount is needed to address the requirement for rough proportionality between the park dedication fee and the impact of residential development on the park system. The initial differential from the average was set in 1998 at plus/minus $1000 or approximately ±25%, yielding a range of fees from $2,900 to $4,900. In December 2000 the average value was $4,428 per unit and, with a range of $3100 minimum to $5300 maximum per dwelling unit, or 70% to 120% of the $4,428 value. The equivalent scenario for December 2001 (incorporated into the 2002 Fee Schedule) was (0.70 x $4630) to (1.20 x $4630) or a range of $3250 minimium to $5550 maximum per dwelling unit. This represented an increase of approximately 4.8 % over the then current fee range, falling between the 3-4% inflation rate and the 7% increase in value of non-lakeshore lands. 2011 Analysis & Update The core basis for establishing a rough proportionality between the park dedication fee and the impact of residential development on the park system has not changed since 2001. It remains the City's philosophy and policy that the currently -existing park system has been paid for by the existing population, and the proportionate share of the projected cost of the City's park system to provide for future needs for park development as a result of future population increases should be borne by new residential units. Orono's Park Dedication Fees have not increased since 2002. Factors to be taken into account in this update include additions to the Orono park system since 2001; changes in value of the existing system over time; changes to future projected acquisition costs; revisions to the Parks CIP relative to acquisitions; and revised population projections as established in the 2008-2030 Orono Community Management Plan. Park System Additions. The following are additions to the Orono park system since the 2001 Analysis: 1. In 2004 the City acquired Lot 63, Tonkaview Gardens as an addition to Saga Hill Park that contains a portion of the ravine area, in exchange for Lot 58, Tonkaview Gardens, which abuts Wildhurst Trail. This was essentially an even exchange, in which the City benefitted by gaining control of the environmentally -sensitive ravine area and eliminating the potential need to allow a driveway access to be developed in Garden Lane to serve Lot 63 if developed residentially. Because Lot 58 abuts Wildhurst Trail, the costs of an excessively lengthy driveway could be avoided by the private owner. No dollar -value attributed to this exchange. 2. In 2005 the City purchased the Big Island Veterans Camp via a financial package that included $1.4 million in available City park funds, $1.6 million in Orono HRA Public Project Revenue Bonds, a $2 million grant from the State of Minnesota and $850,000 from the Minnehaha Creek Watershed District in exchange for a conservation easement over the property. Total direct outlay - — --by the -City -was -$3 000;000. Value of the—acquisition-in-2005-was-$5 850 000. 3. In 2003 approximately 1,900 lineal feet of public trails were developed within the Stonebay residential/commercial development, with an approximate value at that time of $38,000. Approximately 1,500 lineal feet of public trail remain to be constructed within Stonebay, at a current (2011) estimated cost of $25 per lineal foot or $37,500.