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REQUEST FOR COUNCIL ACTION <br />COUNCIL r/.-iiViXwi <br />{^Qy 9 1998 <br />ClWC;"CP.0>;0 <br />Date: November 4, 1998 <br />Item No.: / ^ <br />Department Approval: <br />Name: Michael P. Gaffron <br />Administrator Approval: <br />Title: Senior Planning Coordinatordinator / <br />Agenda Section: <br />Zoning <br />Item Description: Commercial/Industrial Park Fee - Administrative Procedure <br />List of Exhibits <br />A - Ordinance No. 173, Second Series <br />B - Resolution No. 4064 <br />Residential Park Fee Background <br />In April 1998 Council adopted an eunendment to the park dedication ordinance and a companion <br />resolution which established ma.ximum ($4900) and minimum ($2900) park dedication amounts per <br />dwelling unit when applying the 8% land dedication rule. This made perfect sense for single family <br />residential development. If ”8% of the Fair Market Value" is less than $2900, the park fee is set at <br />$2900. If "8% of the Fair Market Value" is more than $4900, the park fee is capped at $4900. If <br />"8% of the Fair Market Value" falls between $2900 and $4900, the 8% value is used. These figures <br />seemed to be reasonable, in that most single family lots created in Orono have a pre-development <br />Fair Market Value exceeding the $36,250 value that yields a $2900 park fee at 8%. As a result, few <br />if any lots would be paying a park fee of more than 8% of their value. <br />Commercial Park Fee: 10 Employees = 1 Residential Dwelling Unit <br />The amendment then went on to establish that commercial/industrial subdivision park dedication <br />requirements "will be tied to the residential dedication requirement by determining the number of <br />employees that is equivalent to a residential dwelling unit in terms of impact on the City's park <br />system." Resolution #4064 adopted April 13, 1998 establishes that ten (10) employees are <br />equivalent to one dwelling unit, and further establishes for commercial/industrial property the <br />minimum park dedication fee of $2,900 per 10 employees and a ma.ximum fee of $4,900 per 10 <br />employees. <br />The ordinance and resolution are worded such that the commercial/industrial park fee collected will <br />be based on a minimum of $2900 per 'dwelling unit equivalent' and a maximum of $4900 per <br />'dwelling unit equivalent'. It does nol say that the park fee will be capped at 8% of the Fair Market <br />Value.