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Approved Chapter 26 of the City Code, which regulates the subdivision land, establishes park land dedication requirements for all new residential development. These requirements date back to the 1980's, however the fees never were imposed for commercial or industrial zoned property. While it is recognized that users of commercial and industrial zoned property benefit from the City's park system it became necessary to require a land and/or cash dedication at the time of subdivision. The attached Zoning Ordinance amendment establishes park land dedication requirements, in the form of land and/or cash contributions, for all newly subdivided commercial and industrial property. Much like the current residential dedication requirements, the proposed language requires ten percent of the total land being subdivided for dedication for parks, recreation, and usable open space. The City has the option to consider payment of a reasonable amount in lieu of land dedication where appropriate. The amount of land and/or cash contribution is based on the specific characteristics of the proposed subdivision and its intended use. Baker inquired who would determine if the applicant should give land or a cash dedication. Fernelius replied that the City would decide if the applicant can dedicate land or cash. Zisla asked how the amount of ten percent was decided. Gundlach replied the ten percent is based on what the residential applicants pay and a study done by Ingraham and Associates show that several cities in the area also charge ten percent. Zisla inquired if it was ten percent of the land area or ten percent of the market value. Gundlach replied that it's ten percent of the land being developed and if there is a cash dedication then it would be based off of the current market value. Zisla asked if in her research if she had uncovered anything that explains how the ten percent is related to the needs created by the use being developed on the property. Gundlach replied that she did not find anything in her research. Fernelius stated that New Brighton is one of the few cities that do not charge a commercial park dedication fee. He added that this ordinance would only take effect if the land is subdivided, which has not happened in the last two years that he knows of Northwest Quadrant will generate this fee, since it will be subdivided, and it will help pay for the public art that has been discussed at previous meetings. Schiferl replied that there should be a per unit charge for residential rather than a percentage base and it should be less for commercial. Fernelius replied that the City does have a fee per unit noted within the ordinance, but one is noted within the City's Fee Registrar. Zisla inquired how the City arrived at the fee for residential. Fernelius replied that the current fee is based on a survey of surrounding communities that was done by the former Parks and Recreation Director. Zisla replied that the amount of ten percent is arbitrary and the City needs to show how that money will be used. He added that just because surrounding communities are charging that price for the park dedication does not mean that New Brighton should with out showing the need for the support. Fernelius replied that he is not aware of any fee studies that have been done that relate to park dedication and the need for support,but staff would be willing to look into it more if directed by the Commission. Zisla replied that he is concerned with the need not of the C:ADocuments and Settings\igoepe 1ocal Settings\Temporary Internet Files\0I.K28\04-18 2006 MINUTI?S.dot