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r( To; From: Date: Subject: Janice Gundlach, City Planner Mike Gaffron, Planning Director April 8,2004 Application #04-2984 Professional Properties of Orono - Medical Office Development Fees Analysis Site address: 2745 Kelley Parkway Legal description: Lot 2, Block 1, City of Orono Addition Lot area: 2.56 acres I. Park Dedication . This lot was orieinallv platted in 1991 bv the City in order to effectuate the purchase ofthe City facilities site north of Kelley Parkway. Theplat created Lot 1 north ofKel ley Parkway, Lot 2 south of Kelley Parkway, and the 60* road corridor separating the two lots. Lot 2 was not purchased by the City but was retained by the seller of the site. Bill Gagne. Lot 2 was expected to be developed commercially under the B-6 standards. Although the 1991 City Fee Schedule required an 8% dedication of land (or fee equivalent) for commercial development, I can find no mention ofpark dedication or equivalent fees inthel991 subdivisionfile, for either Loti or Lot2.Myassumption is that since Lot2was not immediately being dev eloped and was created merely as a remnant parcel for future use, no park fee was charged. The current 2004 City Fee Schedule establishes a Park Dedication requirement of 8% of the land or equivalent in fees, and establishes a minimum/maximum fee of S8,l 25/Sl 3,875 per acre. The County has assessed this property at a value of $541,000 although the purchase record indicates a January 2003 sale at $400,000. Using the lower value of $400,000 the park dedication fee requirement would be 0.08 x $400,000 = $32,000. The range ofmin/max park fees for the 2.56 acre property is from a low of (2.56 X $8,125)=$20,800 to a high of (2..56 x $ 13,875) = $35,520. If the $541,000 taxable market value is used, the parke fee would be 0.08 x $541,000 = $43,280, which exceeds the fee cap, so the fee would then be $35,520. The City Assessor should be consulted to determine the Fair Market Value of the undeveloped land to determine the actual park fee amount due. II. SewerAV ater Units & Connection Charges In 1967 when sewer and water v as initially brought to the Highw ay 12 area, this property was part of an undivided 76 acre parcel stretching ftom Willow Drive to Old Crystal Bay Road. The 76 acres wa.s assessed for front footage and three (3) sewer and water units. In 1 983 a sewer system upgrade project was completed (1983-1 Orono-Long Lake-Medina project) which provided some additional capacity for properties in the Highway 12 area. In 1984, at the time the Dental Office site on the comer of 1 2/OCBRd was created for a library site, the owners formally gave 2 ofthe original3 units to Hennepin County as partofthesaleofthatsite. About that same time. Highway 12area sewer capacityof 1 16units attributable to the 1983-1 upgrade, was reallocated by parcel, and 17 units were allocated to the 76 acre parcel. These 17 units were not assessed for that proj ect since the parcel was vacant, but the costs of that excess edacity would have been due i^>on development II