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Commercial Park Fee - Administrative Procedures <br />November 4, 1998 <br />Page 2 <br />A commercial parcel developed to accommodate a large number of employees could end up paying <br />significantly more tlian 8% of its Fair Market Value. The same parcel developed for use by only a <br />small number of employees could end up paying significantly less than 8%. Following are some <br />examples of how this works: <br />Example 1 <br />If a $200,000 property will accommodate 50 employees, this is the impact equivalent of 5 dwelling <br />units (5 DU's). <br />Park Fee Based on 8% of Fair Market Value = 8% of $200,000 = $16,000 <br />Minimum Park Fee Based on 5 DU Equivalents = 5 x $2,900 = $14,500 ( 7.25%) <br />Maximum Park Fee Based on 5 DU Equivalents = 5 x $4,900 = $24,500 (12.25%) <br />In this case the 8% fee falls between the minimum and maximum, and we would presumably collect <br />$16,000. <br />Example 2 <br />If the same $200,000 property will accommodate 100 employees, this is the impact equivalent of 10 <br />dwelling units. <br />Park Fee Based on 8% of Fair Market Value = 8% of $200,000 = $16,000 <br />Minimum Park Fee Based on 10 DU Equivalents = 10 x $2,900 = $29,000 (14.5%) <br />Maximum Park Fee Based on 10 DU Equivalents = 10 x $4,900 = $49,000 (24.5%) <br />We would have to raise the park fee from $16,000 to the $29,000 minimum, and the developer <br />would pay a 14.5% park fee. <br />Example 3 <br />If the same $200,000 property will accommodate only 10 employees, this is the impact equivalent <br />of 1 dwelling unit. <br />Park Fee Based on 8% of Fair Market Value = 8% of $200,000 = $16,000 <br />Minimum Park Fee Based on 1 DU Equivalent = 1 x $2,900 = $2,900 (1.45%) <br />Maximum Park Fee Based on 1 DU Equivalent = 1 x $4,900 = $4,900 (2.45%) <br />In this case, we would have to lower the park fee to the maximum allowable $4,900.