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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 originally platted in 1991 by the City in order to effectuate the purchase oftlie City facilities site north of Kelley Parkway. The plat created Lot 1 north ofKelley Parkway, Lot 2 south ofKelley 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, 1 can find no mention of park dedication or equivalent fees in the 1991 subdivision file, for either Lot 1 or Lot 2. My assumption is that since Lot 2 was not immediately being developed 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 S8,125/$ 13,875 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 of min/max park fees for the 2.56 acre proper.y is from a low of (2.56 X $8,125) = $20,800 to a high of (2.56 x $l 3,875) = $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 $35,570. The City Assessor should be consulu J to determine the Fair Market Value of the undeveloped laud to determine the actual park fee amount due. II. Sewer/Water Units & Con ection Charges In 1967 when sew erai. vatcr was initially brought to the Highway 12 area, this property was part of an undivided 76 acre parcel stretching from Willow Drive to Old Crystal Bay Road. The 76 acres w as assessed for front footage and three (3) sew-cr and water umts. In 1983 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 12/OCBRd was created for a library site, the owners formally gave 2 of the original 3 units to Hennepin County as part of the sale of that site. About that same time. Highway 12 area sewer capacity of 116 units 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 project since the parcel was vacant, but the costs of that excess capacity would have been due upon development. f'