Commercial-Industrial Park Dedication Memo from Steve R.

Home Browse Search

Justification Park land dedication fees are charged for residential development in order to ensure that there is the necessary land and/or funds dedicated to public parks. The same rationale can be applied for commercial/industrial park land dedication fees as well. Currently, the General Fund provides the majority of funding for capital projects through the park's non-fleet internal charge. Significant resources will continue to be necessary in order to responsibly repair, renovate, and maintain the City's existing park infrastructure in the coming years. In addition, the City will consider expanding its park system through the acquisition of the Baptist Seminary's Jones Lake property. The 27 acre parcel is equivalent to approximately fifteen percent of the City's current park land inventory. A commercial/industrial park land dedication fee could potentially assist in offsetting General Fund expenses in future years. All revenue would continue to be dedicated to Fund 403: Parks Capital Projects, which is reserved for park planning, renovation, acquisition, and development. MRPA Survey In 2003, the Minnesota Recreation and Parks Association conducted a Park Dedication Rates survey of its member cities (see attachment). Twenty-seven cities responded and of those, only Buffalo, Crosslake, New Brighton, and New Hope did not charge commercial/industrial park dedication fees. However, beginning in 2004, New Hope did approve the implementation of a C/I fee. If the City Code is revised to include commercial/industrial park land dedication fees, I recommend that the initial fee for commercial/industrial developments be $2,500 per acre. This is consistent with New Hope's fee, which has many of the same redevelopment issues facing the City. The average fee of the other responding communities is much higher, but the many of the communities are still experiencing growth and park land acquisition and development is a significant portion of their community's development. I would appreciate an opportunity to discuss my recommendation with you, Dan, and staff from the Community Development Department. If the decision is made to proceed, the Parks, Recreation, and Environmental Commission could review a formal proposal at their October meeting. It may also be advantageous to review this with the Economic Development Commission and Planning Commission prior to presenting a recommendation for City Council consideration. G:\DATA\FSC\WP\CORRESP\2004\Steve\C-1 park dedication.doc