12-09-2002 Council Packet - Laserfiche WebLink

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Fark System Analysis for Determining Park Fee (Rei^ewed and updated December 2001) The City’s park dedication ordinance calls for minimum and maximum park dedication fees to be set by Council resolution. The minimum and maximum dedication requirements for residential property are established based on the proportionate share of the cost of the City's park system to be borne by new residential units. Based on the City’s plans and policies regarding parks, open space and trails, staff has calculated the proportionate share of the projected cost of the City's park system to be borne by new residential units as of December 2001 is an average of $4,630 per projected new dwelling unit. The calculation of this amount is based on tlie accompanying table, and sununarized as follows: Summary Total Property Acquisition Intended Expected Park Development/Improvements (December 2000 value x I.0375**) “ Trails ^ « j Subtotal Added Parks Land/Items Since 1997-98 1997-1998 Existing Parks Value X 1.10 1998-2000 Value Increase x 1.07 2001 Land Value Inflation Factor S 6.474.000 Total Projected Parks Value **E*timaled average CPI inflation factor for December 2000 to December 2001 $ 5,874,000 799,000 3.424.000 $ 10,097,000 $ 1,966,000 S 18,537,000 • i. Dwelling units at full development per 2000-2020 CMP Current dwelling units per 2000 Census (2766 households / 95.1 % occupancy) Number of future dwelling units to be added 3,990 2.909 1,081 Projected » dwellings to be added is 1081/3990 = 27% of total projected dwellings. The added 27% of dwelling units should pay 27% of the projected value of the City’s park system. 27% of $18,537,000 is $5,004,990. $5,004,990 to be paid by 1,081 dwelling units is $4,630 per unit Ranee Establishment Because of the vastly difTcring 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 othcnvisc been contributed. The establishment of a minimum and ma.\imum park dedication fee ^ount 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 ptus'minus S1000 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 S3100 minimum to $5300 ma.\imum per dwelling unit, or 70% to 120% of the $4,428 value. The ^uivalcnt scenario for December 2001 would be (0.70 x $4630) to (1.20 x $4630) c. a range of $3250 ininlliiluin to $5550 maximum per dwelling unit. This represents an increase of approximately 4.8 % over the current fee range, falling between the 3-4% inflation rate and the 7% increase in value of non-lakeshore lands.