HomeMy WebLinkAbout14.A. Amendment to the Subdivision Ordinance Regarding Park Dedication-Ord. No. 720-tabled 1/18
14.A.
CITY OF SHAKOPEE
MEMORANDUM
To: Mayor and City Council
Mark McNeill, City Administrator
From: Mark Themig, Parks, Recreation and Facilities Director
Meeting Date: February 1, 2005
Subject: Park Dedication Text Amendment
INTRODUCTION
At the January 18 meeting, City Council tabled the proposed text amendment to City
Code Chapter 12, Sec. 12.34, Parks and Dedication. City Council as asked to remove
this item from the table, and if you concur, move its adoption or provide direction.
BACKGROUND
The Parks and Recreation Advisory Board has been working on revisions to the park
dedication ordinance that would address the inequity the city has in a land and cash
dedication scenario. In addition, the Advisory Board recommended that we clarify what
land value is used in determining the annual park dedication fee, and require payment of
park dedication fees at time of recording the final plat. The attached report to the
Planning Commission provides background on the issues.
The Planning Commission had an introduction to the proposed text amendment at their
December 2004 meeting, and a formal public hearing at their January 6, 2005 meeting. I
sent both electronic and written notices to the more active developers that would be
impacted by the proposed change (see attached). No developers contacted me nor
attended either of the Planning Commission meetings.
Although the Planning Commission hacl spirited discussion about park dedication in
general, they recommended approval of the proposed text amendment to City Council.
DISCUSSION
At the January 18th City Council. meeting, Council expressed concerns reg~lrding the
proposed text amendments. As I recall, the two primary concerns were related to the
proposed clarification in what land value is used to calculate the annual park dedication
fee, as well as the proposed change in requiring payment of park dedication fees at the
time of recording the final plat. I have provided additional information that was not
included in your January 18th packet.
Land Value and Impact
The proposed change to the text would clarify what land sales are used to determine the
value of the land that establishes the cash contribution each year. As it is currently
written, the cash contribution is based on the "average undeveloped land value in the
City". The proposed text clarifies that it is based on the "average fair market value of
undeveloped land that is, or under the City's adopted comprehensive plan, may be
served by municipal sanitary sewer and water service".
As I recall from the last meeting, the concern was that a developer in the rural residential
areas of Shakopee might be unfairly burdened by this clarification. However, we are
seeing examples of land outside of the urban service areas that are actually selling for
more than the value that was used to calculate the 2005 park dedication fee, which is
$115,810. On the reverse, there are examples of land selling within the urban service
area that is higher than this value.
In working with Mr. Thomson in developing the proposed text, we discussed using the
actual value of the sale of the land that is being developed in order to calculate the park
dedication fees and credits. His opinion was that this would be too subjective and could
be challenged because developers would be assessed different park dedication costs
based on the value of the land.
The question of whether or not rural residential developments are being unfairly
burdened by this language should also be viewed as part of the density of the
developments. Since the fee is based on the number of residential units being platted,
those developments in rural residential areas will be likely be paying less per
development than those in the urban service areas because their densities are usually
lower.
Finally, one option that the Planning Commission discussed to help determine the land
value (under either the existing or proposed text) would be to have an appraiser conduct
an analysis of recent land sales on behalf of the city. This might be a worthwhile
consideration in the event the city would ever be challenged. I would anticipate that this
work might cost somewhere in the $5,000-$10,000 range, which is a relatively small
compared to the amount of fees we anticipate collecting in the upcoming years.
Determining When Park Dedication Fees are Due
The proposed text amendment also requires payment of fees at time of recording the
final plat. As I recall from discussion at the last meeting, the issue was what impact this
would have to developers. Mr. Leek noted that most developments go through the
preliminary plat process for the overall development, then phase in development by
submitting more than one final plat. Under the proposed text amendment, the only park
dedication fees that would be due would be for those units that are being platted with
that phase of the final plat. The remaining park dedication fees would be payable with
subsequent final plats.
REQUESTED ACTION
Offer and pass a motion consistent with your wishes regarding the proposed Ordinance
No. 720, an Ordinance Approving the Text Amendment Modifying City Code Sec. 12.34.
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CITY OF SHAKOPEE
Memorandum
CASE LOG NO.: 05009 }"
TO: Mayor and City Council
Mark McNeill, City Administrator
FROM: R. Michael Leek, Community Development Director
SUBJECT: Amendment to City Code Chapter 12, Sec. 12.34, PARKS AND
DEDICATION
MEETING DATE: January 18, 2005
INTRODUCTION:
The Parks and Recreation Advisory Board (pRAB) and the Planning Commission have recommended
an amendment to that portion ofthe City Code that establishes park dedication requirements.
DISCUSSION: ,
Attached to this report for the Council's information is a copy of the report provided to the Planning
Commission regarding the proposed text amendment. The most significant changes proposed are;
. The elimination of deferral of payment to the time of building permit application; and
. Clarification ofthe definition of fair, market value for purposes of calculating equivalent cash
dedication.
PLANNING COMMISSION RECOMMENDATION:
The Planning Commission reviewed this request at their December 9, 2004 and January 6, 2005
meetings, and by unanimous vote, recommended approval of the request as presented by the PRAB
and Mr. Themig.
ALTERNATIVES:
1. Approve Ordinance No. 720, an ordinance approving the text amendment modifying City Code
Sec. 12.34 as presented.
2. Approve Ordinance No. 720, an ordinance approving the text amendment modifying City Code
Sec. 12.34 with revisions.
3. Deny the text amendment.
4. Table the matter for additional information.
ACTION REQUE.STED:
Offer and pass a motion approving Ordinance No. 720, an ordinance approving the text amendment
modifying City Code Sec. 12.34 as presented.
ORDINANCE NO. 720. FOURTH SERIES
AN ORDINANCE OF THE CITY OF SHAKOPEE, MINNESOTA, AMENDING CHAPTER
12, SEC. 12.34. PARKS AND DEDICATIONS
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THE CITY COUNCil OF THE CITY OF SHAKOPEE. MINNESOTA, ORDAINS:
Sect 1- That City Code Chapter 12, Sec. 12.34, PARKS AND DEDICATIONS
is hereby amended by adding the language which is underlined, and deleting the
language that is struck through.
SEC. 12.34. PARKS AND DEDICATIONS.
Subd. 1. Purpose. The City Council recognizes it is essential to the health, safety and
welfare of the residents of the City of Shako pee that the character and quality of the
environment be considered to be of major importance in the planning and development of
the City. In this regard, the manner in which land is developed and used is of high priority.
The presentation of land for park, playground, public open space purposes and trails as it
relates to the use and development of land for residential, commercial and industrial
purposes is essential to the maintaining of a healthful and desirable environment for all
residents of the City. We must not only provide these amenities for our citizens today, we
must be mindful of our future citizens.
The City Council should recognize that demand for park, playground, public open space
and trails within a municipality is directly related to density and intensity of development
permitted and allowed within any given area. Urban type developments mean greater
numbers of people and higher demands for park, playground, public open space and
trails. To disregard this principle is to inevitably over-tax existing facilities and thus
diminish the quality of the environment for all residents.
Subd. 2. Standards for Accepting Dedication of land for Public Purposes. It should
be the policy of the City of Shakopee that the following standards and guidelines for the
dedication of land for park, playground, and open space purposes (or cash contribution in
lieu of such dedications) in the subdividing and developing of land within the City shall be
directly related to density and intensity of each subdivision and development.
A. As a prerequisite to subdivision approval, subdividers shall dedicate land
for parks, playgrounds, public open spaces and trails and/or shall make a
cash contribution to the City's park fund and trail fund as provided by this
section.
B. land to be dedicated shall be reasonably suitable for its intended use and
shall be at a location convenient to the people to be served. Factors used
in evaluating the adequacy of the proposed park and recreation areas shall
include size, shape, topography, geology, hydrology, tree cover, access
and location.
C. The Parks and Recreation Advisory Board shall recommend to the
Planning Commission and City Council the land dedication and cash
contribution requirements for proposed subdivisions.
D. Changes to the density of plats shall be reviewed by the Parks and
-, . Recreation A~M~pry. ~9~rcl. f9r,E~,g9,Q,~jg~.(9JiQn Rfparkd~dicatiqQ . ~('lg, ~~~h
contribution requirements':" """.-,.',.. '. '. c-- no . . '""' .,. ..
E. When a proposed park, playground, recreational area, school site or other
public ground has been indicated in the City's official map or
Comprehensive Plan and is located in whole or in part within a proposed
plat, it shall be designated as such on the plat and shall be dedicated to the
appropriate governmental unit. If the subdivider elects not to dedicate an
area in excess of the land required hereunder for such proposed site, the
City may consider acquiring the site through purchase or condemnation.
F. Land conveyed or dedicated to the City shall not be used in calculating
density requirements of the City zoning ordinance, and shall be in addition
to and not in lieu of open space requirements for planned unit
developments.
G. When private open space for park and recreation purposes is provided in a
proposed subdivision, such areas may be used for credit, at the discretion
of the City Council, against the requirements of dedication for park
purposes, provided the City Council finds it is in the public interest to do so.
H. The City, upon consideration of the particular type of development, may
require larger or lesser parcels of land to be dedicated if the City
determin!;9s that present or future residents would require greater or lesser
land for park and playground purposes.
I. In residential plats, the City of Shakopee shall have a standard of one (1)
acre of park land for every seventy-five (75) people. Thus, one (1) acre of
land shall be conveyed to the City as an outlot warranty for every seventy-
five (75) people the platted land could house based on the following
population calculations:
Single-family detached dwelling lots 3.0 persons per lot
Duplex-Twin homes 3.0 persons per dwelling unit
Apartments, Townhouses, Condominiums,
other multiple family dwelling units 1 person per bedroom
J. In plats other than residential, the City hereby finds that, as a general rule,
it requires that an amount of land equal to 10% of the undeveloped land
proposed to be subdivided be dedicated or reserved to the publiC for public
use for parks, playgrounds, trails, wetlands or open space. Should the land
to be dedicated have greater fair market value than the average fair market
value in the plat, the City shall only be authorized to require dedication of
an amount of land equal to 10% of the fair market value of all the property
being platted.
:t. K. In lieu of park land don::ltiondedication, the City may require an equivalent
cash donation dedication based upon average undeveloped land value in
the City the average fair market value of undeveloped land that is. or
under the City's adopted comprehensive plan. mav be served by
1 'f municipal sanitary sewer and water service. The cash dedication
"~'f~1~.'tr'7,~,\"<",,.,,"~~g!,Jir~mEmt shallbE:l.E:l~tClRIi~hedannua\lY by the qity..CQunci.I:... --......."..,...
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L. In lieu of trail donation, trail construction, or trail easement dedication, the
City may require a cash donation for the trail system. The cash dedication
requirement shall be established annually by the City Council. Dedication
for trails in the form of cash shall apply only to residential plats.
M. The City may elect to receive a combination of land and cash....., land and
devclopment land for park use. The fair market value of land the City
wants and the value of the development of land shall be oalculated. That
amount shall be oubtraeted from the oash contribution required by
subsection K above. The remainder shall be the eaoh contribution
requirement. The city shall determine the amount of land dedication it
reauires. and. the cash contribution shall be. calculated based on the
percentaae of unmet land dedication.
N.Fair market value shall be determined ac' of the time of filing the final plat in
accordance ,....ith the following order of.preferenoe:
1.the prioe the cubjeet land Gold for 'Nithin the. pact year;
2.based on the average fair market value of undeveloped City residential
property by zoning classification, served by major City utilities;
:km appraisal performed for or on behalf of the City 'Nithin the past year;
4.an appraisal performed for or on behalf of the subdivider \uithin the past
yeaf:-
Tho fair market value determination shall exclude any value added to such
land within the past year for improvements serving such land.
o.N. Planned unit developments with mixed land uses shall make cash and/or
land contributions in accordance with this section based upon the
percentage of land devoted to the various uses.
P-.-O. Park and trail cash contributions are to be calculated based on the fees in
place at the time of the final plat approval.
~P. The cash contributions for parks and trails shall be deposited in either the
City's park development fund or multi-purpose pedestrian fund and shall be
used only for park acquisition or development and trail acquisition and
development.
RrQ. If a subdivider is unwilling or unable to make a commitment to the City as to
the type of building that will be constructed on lots in the proposed plat, the
land and cash contribution will be a reasonable amount determined by the
City Council.
SrR. WetlgQg,,,.RPndimt areas"..drail1ag~W.gy~ ....a9E~21~d",.~x,Jb,~J~~tytT~;Rc~.n.,n.gt.8~:.
considered in the park land'candlor cash. contribution totheCity. .. .. .... . .
+.s. When a proposed trail has been indicated in the City's official
Comprehensive Plan Map, and it is located in whole or in part within the
proposed plat, it should be designated on the plat and should be dedicated
to the City. If the subdivider elects not to dedicate an area in excess of the
land required for a trail, the City may consider acquiring it through
condemnation.
u..T. Required land dedication andlor payment of fees in lieu of land dedication
shall be required at the time of recordina the final platsubdi'lision approval.
HO'Ne'ler, at the requeot of any party submitting a plat, tho council may, at
it's exclusive discretion, enter into a contractual agreement with said
Developer to 0110..... said payment to be deferred until a building permit or
permits are issued for the lots in said plat. Any such deferment shall be in
accordance vJith the park dedication feeo in effect at the time of ioouance of
the building permit(s).
Section 2 - Effective Date. This ordinance becomes effective from and after its.
passaae and publication.
Adopted in session of the City Council of the City of Shakopee.
Minnesota held the day of .2005.
Mavor of the City of Shako pee
ATTEST:
City Clerk
Published in the Shakopee Vallev News on the day of .2005.
CITY OF SHAKOPEE
MEMORANDUM
To: Planning Commission
Michael Leek, Community Development Director
From: Mark Themig, Parks, Recreation and Facilities Director
Date: November 29, 2004
Subject: Park Dedication Ordinance Text Amendment
INTRODUCTION
The Parks and Recreation Advisory Board is recommending text amendments to Section
12.34 of the City's code relating to park dedication. The proposed text amendments:
. Change the formula for how credits are calculated in a land and cash contribution
scenario.
. Clarify that the park dedication fee is based on the average fair market value of
undeveloped land that is, or under the City's adopted comprehensive plan, may be
served by municipal sanitary sewer and water service.
. Clarify that park dedication is calculated at time of final plat approval. This proposed
change also eliminates the ability to defer park dedication payment until building
permit.
BACKGROUND
In late 2003 and early 2004, the Parks and Recreation Advisory Board reviewed
development proposals where the developer wanted.to meet park dedication
requirements through a combination of land and cash contributions (Riverside Fields,
Church Addition, Valley Creek Crossing). While the combination of land and cash was
generally acceptable, the formula in the ordinance creates an equity issue.
As the ordinance is written, the city can require a park land dedication, cash contribution,
or combination of land and cash. The land dedication and cash contribution are
straightforward:
land Contribution
Section 12.34, Subd. 2.1. and 2.J.
"In residential plats, the City of Shakopee shall have a standard of one (1) acre
of park land for every seventy-five (75) people. Thus, one (1) acre of land shall
be conveyed to the City as an outlot warranty for every seventy-five (75)
people the platted land could house based on the following population
calculations:
. Single-family detached dwelling lots 3.0 persons per lot
. Duplex-Twin homes 3.0 persons per dwelling unit
. Apartments, Townhouses, Condominiums,
other multiple family dwelling units 1 person per bedroom
In plats other than residential, the City hereby finds that, as a general rule, it
requires that an amount of land equal to 10% of the undeveloped land
proposed to be subdivided be dedicated or reserved to the public for public use
for parks, playgrounds, trails, wetlands or open space. Should the land to be
dedicated have greater fair market value than the average fair market value in
the plat, the City shall only be authorized to require dedication of an amount of
land equal to 10% of the fair market value of all the property being platted."
(The city typically hasn't required land dedication for commercial/industrial
plats.)
Cash Contributions
Section 12.34, Subd. 2.K.
"In lieu of park land donation, the City may require an equivalent cash donation
based upon average undeveloped land value in the City. The cash dedication
requirement shall be established annually by the City Council."
Each year, the Parks and Recreation Advisory Board reviews recent land
transaction sales and recommends a fee that is based on those transactions
(See Attachment B).
The land value becomes an issue when the City is requesting a combination of land and
cash. Current ordinance provides for a credit to a developer when a combination of land
and cash is provided (Section 12.34, Sub 1):
land and Cash Contributions
K. "In lieu of park land donation, the City may require an equivalent cash donation
based upon average undeveloped land value in the City. The cash dedication
requirement shall be established annually by the City Council.
M. The City may elect to receive a combination of cash, land and development land
for park use. The fair market value of land the City wants and the value of the
development of land shall be calculated. That amount shall be subtracted from
the cash contribution required by subsection K above. The remainder shall be
the cash contribution requirement.
N. Fair market value shall be determined as of the time of filing the final plat in
accordance with the following order of preference:
1. the price the subject land sold for within the past year;
2. based on the average fair market value of undeveloped City residential
property by zoning classification, served by major City utilities;
3. an appraisal performed for or on behalf of the City within the past year;
4. an appraisal performed for or on behalf of the subdivider within the past year.
The fair market value determination shall exclude any value added to such land
within the past year for improvements serving such land."
DISCUSSION
The problem with the formula in the ordinance is that the fair market value of the land
that the credit is based on is typically higher than the average undeveloped land value
used to calculate the park dedication fee. In other words, the developer is getting credit
for the land they dedicate at a higher price than the value of the land used to calculate
the cash contribution.
Proposed Changes
In order to address the inequity between "fair market value" used for the credit and
"average undeveloped land values" used to calculate the park dedication fee amount,
the Parks and Recreation Advisory Board reviewed a text amendmentthat uses the
average undeveloped land values for calculating the credit a developer receives.
One option that we considered was using the actual purchase price of the land for
calculating the park dedication fee. In working with City Attorney Jim Thomson, he
indicated that tying the park dedication fee to the purchase price of the land was too
subjective and could be challenged because developers would be assessed different
park dedication costs based on the value of the land.
After further work with Mr. Thomson, we are proposing a text amendment that bases the
cash contribution on the percentage of unmet land dedication. For example, if a
developer was required to provide ten acres of land, but they only provided six acres
(60% of their requirement), the remaining cash contribution would be 40% of the total
cash contribution required.
The following are two examples to illustrate the current formula and the proposed
changes. These illustrations are based on the 2004 park dedication fees:
Illustration 1
. 80 acre development with fair market value of the land based on sale price = $150,000
. 200 single-family units
. Total number of acres of park land that could be required:
200 units X 3 people per unit /75 people per acre = 8 acres of park land
. Advisory Board requests 6 acres of park land with the balance in cash.
CURRENT FORMULA: Calculation for credit given to developer under current ordinance and
2004 fee:
Cash contribution that could be required: 200 units X $3,615/unit =$723,000
Fair market value for 6 acres being requested: 6 acres X $150,000/acre =$900,000
Result = $900,000 credit for 6 acres would exceed cash requirement, so the developer is
not required to provide any cash.
PROPOSED FORMULA: Calculation for credit given to developer under proposed ordinance
change and 2004 fee:
Cash contribution that could be required: 200 units X $3,615/unit =$723,000
% of park dedication met 6 acres being provided out of 8 acres required =75%
Remaining contribution: 25% of $723,000 =$180,750
Result = $180,750 cash contribution to meet full requirement.
Illustration 2
. 150 acre development with fair market value of the land based on sale price = $150,000
. 440 single-family units
. Total number of acres of park land that could be required:
440 units X 3 people per unit /75 people per acre = 17.6 acres of park land
. Advisory Board requests 10 acres of park land with the balance in cash.
CURRENT FORMULA: Calculation for credit given to developer under current ordinance and
2004 fee:
Cash contribution that could be required: 440 units X $3,615/unit =$1,590,600
Fair market value for 10 acres being requested: 10 acres X $150,000Iacre =$1,500,000
Result = $90,600 cash contribution required to meet full requirement.
PROPOSED FORUMLA: Calculation for credit given to developer under proposed ordinance
change and 2004 fee:
Cash contribution that could be required: 440 units X $3,615/unit =$1,590,600
%of park dedication met: 10 acres being provided out of 17.6 acres required =56.8%
Remaining contribution: 43.2% of $1,590,600 =$687,139
Result = $687,139 cash contribution to meet full requirement.
We are also proposing two other text amendments to the ordinance:
. Sect. 12.34, Subd. 2.K.: Clarifies that park dedication fee is based on the average
fair market value of undeveloped land that is, or under the City's adopted
comprehensive plan, may be served by municipal sanitary sewer and water service.
This text change clarifies what land values are used to calculate park dedication
requirements.
. Sect. 12.34, Subd. 2.U.: Clarifies that park dedication is calculated at time of final
plat approval.
This text change clarifies when park dedication is calculated, consistent with state
statute. In addition, we are proposing to remove the ability for developers to defer
payment of park dedication fees until building permits are issued. By removing this
condition, we will have better accountability for park dedication revenue, and be able
to begin using that revenue immediately for park development.
Attachment A contains the proposed changes.
REQUESTED ACTION
The Planning Commission is asked to conduct a public hearing on the proposed text
amendment, and make a recommendation to City Council.
SHAKOPEE
PARKS & RECREATION,
NATURAL REsOURCES, AND FACILITIES
To: Tollefson Development
Ryland Homes
College City Homes
Centex Homes
Associated Capital Corporation
Noecker Development
Link Construction
From: Mark Themig, Director
Date: December 6, 2004
Subject: Proposed Changes in Park Dedication
Attached are staff reports on two proposed changes to park dedications:
. The first sets the 2005 park dedication fee. The proposed fee will be considered at
City Council's December ih meeting.
. The second is a text amendment recommendation from the Parks and Recreation
Advisory Board that attempts to deal with the inequity in a land and cash dedication
scenario. This proposed text amendment would also eliminate the ability for a
developer to request delaying payment of park dedication fees until building permit
application.
This amendment will be discussed at the December 9th Planning Commission, and at
a public hearing before the Planning Commission tentatively set for January 6, 2005.
This mailing is intended to notify the more active residential developers with projects
proposed or being considered in Shakopee. If you feel that any builders you work with
need to know about this information, please feel free to forward them a copy or have
them contact me at 952-233-9514.
COMMUNITY PRIDE SINCE 1857
1255 Fuller Street. Shakopee, Minnesota. 55379-1351.952-233-3830. FAX 952-233-3831
www.ci.shakopee.mn.us . parks@ci.shakopee.mn.us