01-22-1990 Council Packet - Laserfiche WebLink

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i MINUTES OP OROHO COUNCIL MEETING OP JANUARY 8« 1990 ii:**»PARK DEDICATION PEES CONTINl- that we have any finding showing how much is needed. As far as the money that would be a developers concern, what somebody did was to analyze wnat the fee would be under our present system and what it would be under the 10% system. As Mr. Flint indicated, 10% is apparently 10% of the value at the time of preliminary plat application, taking into account its value at subdivision. So, its an amorphous position, ifs not the prior tax value, and it’s not what it will be after the roads go in, ifs what it is taking into account the fact that ifs about to be turned into something like a 17-lot subdivision. It s going to cause a bit of a problem with the Council having to come up with that value. It seems that some other cities have taken care J procedure. So assuming we can get by that, the issue j-s *"“ch money will that generate. What the Park Commission did is look at the old value and then looked at 4 recent subdivisions. I would suggest, from being involved with the last transactions in the City, involving large parcels these values that were placed on these 4 p j. low. They are low by a factor of 3 or 4. As they (the P Commission) note here, in one case, the old fee would have been $1,000.00 and would go to 518,000.00. In another case it g from $1,000 to $8,000, from $2,000 to $11,000, and from 51,200 to $5,000.00. I suggest from my knowledge of the values of these properties, that if the Park Commission would have had a chance to talk to a few people involved in this, you will find tha these values are far in excess of what they thought they You are going to generate perhaps 3 or 4 times more you thought you were. For example, there was one pr p ^ ,j Orono, Foxbend, that recently paid their f®®' J $3,400.00. I would suggest that under the 10% fee, they ''°cl have paid about $100,000.00. This is a •^“9®,^*'®^®®®®' ®J think that you should take into account the ^J probably going to develop a lot more money than Jh® Park commission thought it would develop. I'm ®ure that we that kind of money. I would like to see some kind ®f on how we are going to use this kind of money and how much is needed before I would want to see us take that kind of money from the residents. s;/Sfi‘“£" moved back down to the property owner. It gets "'®^®<^. ^jV® in Orono who owns that Pr®P®^'^yhe i^fellow who owns it is going to subdivide it himself going to sell it to a developer. The developer i® to take I look at what the public is going to pay for t*'®. ®"f decides what his risks are, how much he has to ,^^® for in order to come out right. So, once again, property owner who is going to pay that fee. I sugge is the property owners in fact that own the 2-acre or 5-acre H