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Approved Lastly, collection of park dedication from commercial and industrial property in the future is mostly planned in conjunction with redevelopment of the Northwest Quadrant. The excerpts from the Park, Recreation & Trails Strategic Plan attached to the report specifically identify needs related to the Northwest Quadrant. Those needs include development of a park north of I-694 at Old Highway 8, trail connections for NWQ to Long Lake Regional Park, and implementation of public art. Zisla stated that the general community need has been shown,but the City has not shown how the industrial area will generate an enough park use that they should be charged a ten percent fee. Fernelius reported that the six acre park on the east side and the two acre park on the west side would be paid for with this park dedication fee. The former Parks and Recreation Director based the ten percent fee largely on surveys that he had completed. He added that the Council does have the discretion within the ordinance to lower the fee. Zisla replied that the number is arbitrary and is based on things that the City needs and not on the need of the office/industrial sites. He added that since the City currently owns the land for the Northwest Quadrant, they should be able to carve out the areas intended for the parks and not convey them to the developer. Baker inquired if staff had a chance to see what revenue the residential park and dedication fee generates, compared to what the anticipated collection would be for the commercial park dedication fee. Fernelius replied that on the west side there will be close to 700 units of housing and the developer has agreed to pay$1050.00 per unit. The City is obligated to reinvest half of the fee collected directly back into the Northwest Quadrant, with the rest going into the Park Dedication Fund. The east side could have up to 450 units of housing, which would pay a park dedication fee of$1500.00 per unit based on the 2006 Fee Schedule. The proposed ordinance would apply to the office units that are on the outside parameter of the development and he is willing to come back to the next meeting with numbers for this area. O'Keefe asked if the Park Dedication for residential is already included in the City Code. Fernelius replied that it is. O'Keefe inquired why the developer for the west side is paying a lower dedication than what is in the City Code. Fernelius answered that when the developer's agreement was negotiated, $1050.00 was the required fee per unit at that time. Schiferl inquired if the park dedication fee could be use for capital costs or operational costs. Fernelius replied that it can be used only for capital costs. Schiferl asked when there is dedication, what is the intent of the time period for that dedication or is it left open. Fernelius replied that the Council has the discretion to decide how and when they would like to spend the money collected. Schiferl then inquired if the City owns, for the most part, all the land that will be used for the commercial and industrial uses in the Northwest Quadrant. Fernelius replied that was correct, however it has not been decided on who will subdivide the property on the east side. Baker asked if the City will retain ownership of the six acres that will become the park or will it go to the developer and then be granted back to the City. Fernelius replied that the City would remain the owner through out full development of the Northwest Quadrant. Baker stated that the City Page 2 of 13