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MINUTES OF ORONO COUNCIL MEETING OF JANUARY 8, 1990 <br />PARR DEDICATION FEES CONTINUED 1 • <br />Councilmember Callahan questioned whether using the fair <br />market value was the most satisfactory way to proceed? <br />Mr. Flint said, "Obviously the taxes that we assess every <br />year are based on fair market value. Frankly, the staff favored <br />the existing system where you just pull a number off based on the <br />number of units and the size of the lots. There were two reasons <br />for going with the percentage approach. One was that seemed to <br />be the most common approach that was used by the other cities, <br />and the second was that it automatically adjusts for inflation. <br />I think that it is more difficult to administer because fair <br />market values are in the eye of the beholder. However, we do <br />assess our taxes, City -wide, based on fair market value every <br />year. <br />Callahan said, "I wasn't thinking of it in that sense. The <br />tax assessment, we don't do; some professional does it and it is <br />set. It does open up, the way that it is now proposed, a fight <br />about the fair market value every time someone wants to <br />subdivide. I was wondering whether the Park Commission felt it <br />would come out just as well if it were, say, 10% of the taxed <br />value or some other method ". <br />Mr. Flint reiterated that fair market value is most commonly <br />used. • <br />Callahan asked whether it would be the fair market value <br />before or after development occurred? <br />Mr. Flint replied, "It is basically before the development <br />because of the costs that go into development, such as streets, <br />sewer, etc. However, it is taking the development into account. <br />In other words, that 10 acres in a back lot out behind someone's <br />farm is worth less than 10 acres that are centrally located and <br />has a higher value for potential development ". <br />Mr. Alan Carlson, 3125 Fox Street, said that he is a <br />resident of Orono and a person involved in the subdivision <br />process. Mr. Carlson said that he had some comments from both <br />perspectives. He thanked the Park Commission for the time they <br />put into drafting this and he thanked City staff for their <br />efforts. <br />Mr. Carlson said, "I agree with the recommendation that the <br />fee (Park fee) should be increased, the fees are probably too low <br />and Orono certainly should have a good park system. However, I <br />don't think that from this material that we know, or that the <br />Council knows what the right fee is. I would like to suggest <br />that the matter be tabled for some specific fact finding on that <br />right fee. As Diann said, we can't say that 10% is the right <br />fee. I would like to suggest 3 things in connection with that: is <br />One, from my review of the materials, I believe that the fee <br />schedule will develop much more money than is projected in the <br />materials submitted by the Park Commission. Also, I do not think <br />3 <br />