11-26-2001 Council Packet - Laserfiche WebLink

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roi •••'»•« NOV 2 6 2001 CiU ur uiiuiMU REQUEST FOR COUNCIL ACTION Dale: November 15,2001 Item No.: Department Approval: Name: Michael P. Gaflron Title: Planning Director Adminiitrator Approval:Agenda Sectloa: Zoning Item Description: 112640/2641 Orono Ambor, 2060 \Va>7ata Boulevard • Request for Delayed Pa>-ment of Park Fees for Office Site The Dunbar subdivision created a 2.68>acrc commercial lot for office use (Lot I) and a 4-acre senior housing lot (Lot 2). Park fees for Lot 2 \%-erc deferred for as long as the |>roperty remains in use for senior housing, and will be forgiven at the end of the 25->car TIF period if there is no default at that time. The City intends to recoup the senior housing park fees through its share of the TIF proceeds in >cars 21 -25. The $35.510 commercial pork fee for Lot I is due. by ordinance, at the lime of subdivision. Administratively it is more efficient t<^ collect the fee from the developer up front than to attempt to collect it individually from builders or property owners at a later date when a home is constructed. Dunbar is requesting (hat payment of (he commercial park fee for Lot 1 be deferred until the time Lot I is developed, which might be in 2002 but could be 2003, depending on the ultimate use of that site. As previously noted to Council, the office market has dried up, and a number of alternate uses for the site arc being contemplated. Any commercial (i.e. non-residential) use of Lot 1 would have a park fee based on the commercial fee schedule, currently $ 13.250 per acre regardless of the type of commercial use. 1 lowever. if Lot 1 ultimately was u.scd for a residential u.sc such as assisted-living senior housing. the park fee would be charged at the residential rate per dwelling unit, resulting in a dilTeamt amount than the commercial fee. Dunbar has indicated a willingness to accept a short 2-year window for the deferral, and he will execute whatever promissory note or contract we might ask for. Staff Recommendation Staff recommends that the $35,510 commercial park fee for Lot 1 be deferred for a period nut to exceed 2 years from the date the plat of Orono Ambar is filed with Hennepin County. The current amount of S35.510 is based on the lot si/e of 2.68 acres and a commercial pork fee per the 2001 fee schedule of $13,250 per acre. The amount due shall be adjusted to coincide with the commercial per-acre fee in effect on the dale payment is made. Further, it must be paid in full before any permit for construction of a non-residential building on Lot 1 is issued. If residential use of Lot I ultimately occurs, the amount of the park fee shall be adjusted accordingly during the PUD amendment process. COUNCIL ACTION REQUESTED Approve deferral of commercial park fee for Lot I of the plat of Orono Ambar per staff recommendation, and authorize staff to execute an agreement with the Developer per the terms stated above.