HomeMy WebLinkAboutItem 4 a.pdfMemorandum
To: Mayor and City Council
Steve Mielke, City Administrator
From: Brett Altergott, Parks & Recreation Director
Date: November 1, 2013
Subject: 2014 Park Dedication Fees
ITEM 4 - a
City of Lakeville
Parks & Recreation
The City Council, at its June 4, 2012 meeting, approved an amendment to the City Ordinance
related to Park Dedication Fees. The ordinance changed (a) the land dedication percentages
for residential land uses and (b) the cash contribution requirements for residential properties.
The basis of changes was delineated in a Park Dedication analysis dated May 15, 2012
prepared by Dan Licht, President, The Planning Company.
The Park Dedication Fees cash contributions for residential properties recommended in the
2012 report and subsequently approved by the City Council were based on changes in the
estimated market values as determined by the Dakota County Assessor's Office. According to
the Dakota County Assessors Fair Market Value for Taxes Payable 2014, there is a 2%
reduction in residential values when compared to 2012. A list of the parcels and changes in
valuation are attached.
Based upon the analysis and methodology outlined in The Planning Company report, park
dedication fees in lieu of land should be reduced to reflect the changes in market conditions
between 2012 and 2014. The following exhibit illustrates the current fee and proposed fee
for a single family lot, townhome and multi - family complex:
Current fees Proposed Fee
Single Family Lot $3,532/lot $3,462/lot
Townhouse $2,403/du $2,355/du
Multiple Family $1,824/du $1,788/du
Park Dedication Fee Review Process
The Park Dedication Fees for residential properties will be reviewed in the fall of each year.
The fees will to be based on the changes in estimated market values as established by the
Dakota County Assessor. It is our expectation that Park Dedication fees will increase in 2015
consistent with the improving market conditions.
Commercial and Industrial property values vary based on number of factors including but
not limited to prevailing economic conditions, location, size and zoning. As such staff
recommends park dedications fees for commercial and industrial properties be established
on an appraisal consistent with that used to establish the current fees. Staff recommends
undertaking an appraisal at such time as there appears to be changes in market conditions
and /or improvement in commercial - industrial activity.
Recommendation
City Council approval of a 2% reduction in park dedication fees in lieu of land effective
January 1, 2014 as follows:
Single Family $ 3,462/lot
Townhouse $ 2,355/du
Multiple Family $1,788/du
Property number
22- 00200 -76 -011
22- 00800 -01 -011
22- 00900 -52 -010
22- 01200 -02 -010
22- 01700 -02 -010
22- 01700 -25 -020
22- 01700 -75 -020
22- 01800 -06 -012
22- 02000 -01 -022
22- 02000 -01 -040
22- 02000 -79 -011
22- 02100 -30 -011
22- 02100 -50 -010
22- 02300 -75 -013
22- 02600 -05 -010
22- 02700 -26 -010
22- 02800 -30 -020
22- 11995 -00 -060
22- 38200 -00 -030
22- 41600 -00 -030
Residential
Assessors Est. Market Value
Taxes Payable
2014
NA
NA
742,300
871,900
1,393,400
NA
698,300
NA
829,000
NA
850,700
380,500
1,590,100
630,300
453,100
2,482,100
339,900
NA
NA
215,600
2012
1,271,800
272,900
757,400
889,700
1,421,800
540,500
712,600
1,803,200
845,900
546,500
868,000
388,200
1,622,600
643,200
462,300
2,532,800
346,800
1,260,500
390,300
220,000
Decrease
NA
NA
-2.0%
-2.0%
-2.0%
NA
-2.0%
NA
-2.0%
NA
-2.0%
-2.0%
-2.0%
-2.0%
-2.0%
-2.0%
-2.0%
NA
NA
-2.0%