02-12-1998 Council Work Session - Laserfiche WebLink

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TO:Mayor and City Council FROM:Ron Moorse, City Administrator DATE:February 9,1998 SUBJECT: Park Dedication Ordinance Amendment In recent years. Supreme Court rulings have placed restrictions on dedication requirements cities can place on land subdividers. One of those restrictions is that the amount of a park dedication must be roughly proportional to the impact of the proposed development on the City's park system. The City's current 8% park dedication requirement does not in itself meet the Supreme Court test of rough proportionality. Because of the vastly differing land values in Orono, the 8% park dedication requirement could result in park dedication requirements that are either significantly greater than or significantly less than the amount which is roughly proportional to the impact of the proposed development on the City's park system. It is recommended that the current park dedication ordinance be amended to retain the 8% park dedication requirement, but to indicate that the dedication required cannot be greater than the amount that is roughly proportional to the projected impact of the proposed development on the City's park system. This can be accomplished by placing a cap on the amount of the park dedication to ensure the dedication amount will not be greater than the proportional impact of the development on the City's park system, and by setting a minimum park dedication amount to ensure that properties with lower value contribute their roughly proportional share toward the City's park system. T!' s maximum and minimum park dedication amounts can be determined each year based on an updated projection of the cost of the City's park system and the piop« rtionate share of these projected costs to be borne by new dwelling units in Orono. An amendeu ,wk dedication ordinance that reflects these proposed changes is attached for Council review. 1998 Park Dedication Determination The current projected value of the City's park system is $14.5 million. It is projected that approximately 700 new households will be added to the City when the City is fully developed. TTiis is approximately 19% of the total projeeted households in the City. Based on the new households paying 19% of the projected cost of the City's park system, the average park dedication amount should be approximately $4,000 per household or dwelling unit. Beeause some park dedication amounts w'ill be less than the $4,000 per dwelling unit amount based on the 8% contribution, some park dedication amounts can be greater than $4,000 to meet the average $4,000 park dedication amount. It is recommended that a maximum and minimum park dedication amount be set on either side of the $4,000 average to maintain rough proportionality of the park dedication amounts across the vastly differing property values in Orono, For 1998, it is reconunended the maximum park dedication amount be set at $4,900 per dwelling unit and the minimum park dedication amount be set at $2,900 per dwelling unit. DEDICAHAtTM 1