04-13-1998 Council Packet - Laserfiche WebLink

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r S ■ • « COUNCIL MEETING APR 13 1998 CITYOFORONO REQUEST FOR COUNCIL ACTION DATE: April 9, 1998 ITEM NO: Department Approval: Name Ron Moorse Title City Administrator Administrator Reviewed:Agenda Section: City Administrator's Report Item Description: Park Dedication Fees for Residential and Commercial/Industrial Property Resolutions Residential Park Dedication Requirement The City's park dedication ordinance calls for minimum and maximum park dedication requirements to be set by Council resolution. The minimum and ma.\imum dedication requirements for residential property is set 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 determined the proportionate share of the projected cost of the City's park system to be borne by new residential units is an average of $3,900 per dwelling unit. The calculation of this amount is as follows: Projected households at full development Current number of households Number of households to be added 3,660 2.970 690 Projected households to be added is 19% of the total projected households (690/3660). The additional 19% of households should pay 19% of the projected value of the City's park system which is $14.5 million. 19% of $14.5 million is $2.75 million. $2.75 million to be paid by 690 new households => $3,985 per household. Because of the vastly differing land values in Orono, the application of the general 8% park dedication requirement would result in properties with lower values paying less than the $3,900 average and properties with higher values paying more than the $3,900 average. The establishment of a minimum and maximum park dedication fee amount is needed to address the requirement for rough proportionality between the park dedication fee and the impact of residential development on the park system.