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ACTION COUNaLMEETINGJUL 1 1 1994CITYOFORONO <br />DATE: July 8. 1994 <br />ITEM NO.: ^ <br />Agenda Section: <br />Zoning <br />, 1000 Old Crystal Bay Road South <br />minary subdivision approval. The <br />}nceming the payment of the park <br />>r’s memo concerning this matter, <br />\ of the preliminary plat resolution <br />plat of FreiKh Lake of Orono 2nd <br />Date: <br />Mayor Callahan and Orono Councilmembers <br />Ron Moorse, City Administrator <br />July 8, 1994 <br />Subject: Melamed Subdivision Park Dedication Fee <br />Mr. Melamed has questioned the park dedication fee included in the final plat requirements. He <br />has indicated the existence of a park dedication fee was never discussed with him. He also <br />indicated that the price he offered for the property purchased from the City was based on his <br />understanding that it was inclusive of all costs of developing two lots on the property, with the <br />exception of the sewer unit fees. <br />Staff has responded to Mr. Melamed that the purchase price did give him the right to develop <br />the property with two lots. However, the costs related to actually subdividing the property were <br />his responsibilitv. As the subdivider, he is responsible for all costs of the subdivision. One of <br />these is the park dedication fee. <br />A chronology of events may assist the Council in understanding the staff s position. <br />1 Mr. Melamed submitted an offer for the purchase of the lot based on a <br />requirement that the lot not be subdivided for five years. This offer placed Mr. <br />Melamed in the position of having to pay a park dedication fee if he chose to <br />subdivide the property at the end of the five year period. <br />During the negotiations regarding Mr. Melamed’s offer, he requested that he be <br />allowed to create two lots in less than five years. During these negotiations the <br />City initiated the subdivision of the sewer plant property to create the one 4 acre <br />parcel for Mr. Melamed. The subdivision was initiated prior to the conclusion <br />of negotiations in order to expedite the construction of Mr. Melamed’s home. <br />The result of negotiations was that Mr. Melamed was allowed to create two lots. <br />Based on this result. City staff offered to reinitiate the subdivision application to <br />create two lots for Mr. Melamed. Mr. Melamed requested that the City follow <br />through with the initial one lot application because a reapplication would have <br />delayed the subdivision process, resulting in a delay in the construction of his <br />home. <br />If the City would have reinitiated the subdivision to create two lots for Mr. <br />Melamed, the City would have remained the subdivider, and Mr. Melamed would <br />not have been responsible for a park dedication fee. He also would not have been <br />responsible for the other subdivision costs he has incurred. However, when Mr. <br />Melamed made the decision to delay the creation of the second lot until after the <br />purchase was completed, he became the subdivider, responsible for the park <br />dedication fee.