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express reservations. <br />The general issues related to any developer's fee are as follows: <br />Capital versus Operations - Generally dedication fees <br />are for capital expenditures only, it is expected that <br />operational expenditures would be handled by existing <br />tax base for the portion of operations used by the <br />current users and new tax base for the use by the new <br />development. <br />Costs Soj.j^_t - To the extent that any new <br />TacTillty Is soley”^for use by new development, the total <br />should be paid by the developers. However, for those <br />facilities which there is service to both current <br />development and new development and necessitated by both <br />it is felt the issue relates as to how that is split. <br />(It is assumed that costs for current users would either <br />be through general tax base or some type of assessment.) <br />How Constructed and Paid - <br />Construction - Either built by the developer or by <br />contract and construction under City auspices. <br />Financing - Privately - Either paid privately by the <br />developer and financed in either private sales or <br />mortgage costs. <br />“ Payment can either be through <br />developer's payment up front or an assessment. <br />An issue of r^ark dedication fee for Orono is that at current <br />zoning standards the community is 70-80% developed and the letter <br />questions the fairness of paying for a suostantially increased <br />park systems by the 20-30% of tiie land that is left undeveloped <br />awaiting to be subdivided. <br />Rationale for Par< Dedication - Subdivision represents the <br />intensification of land use in the community. Minnesota statutes <br />that allow for park dedication at subdivision time recognizing <br />that new units create a potential impact on the park system. <br />The use of park land falls into three catagories. <br />Ooen Scace - This element recognizes the benefit to a <br />city of areas which are not built on. In the dense <br />urban environment of central cities, such open space is <br />critical and in many of the redevelopments done in the <br />central cities they work to free up open space for small <br />parks and plazas. In a suburban area because of the <br />larger sized lots this is not as critical an issue. <br />Passive Park Space - This represents the element for <br />utilization as shown on the Comprehensive Plan that <br />1