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Memorandum
To: Mayor, City Council & Interim City Administrator
From: Brett Altergott, Parks & Recreation Director
Date: September 25, 2014
Subject: 2015 Park Dedication Fees
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 2015, there is a 9.2%
increase in residential values when compared to 2014. 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 increased to reflect the changes in market conditions
between 2014 and 2015. The following exhibit illustrates the current fee and proposed fee
for a single family lot, townhome and multi -family complex:
Current fees Proposed fees
(2014) (2015)
Single Family Lot $3,462/lot $3,781/lot
Townhouse $2,355/du $2,572/du
Multiple Family $1,788/du $1,952/du
Park Dedication Fee Review Process
The Park Dedication Fees for residential properties are reviewed in the fall of each year. The
fees are adjusted based on the changes in estimated market values as established by the
Dakota County Assessor. It was our expectation that Park Dedication fees would 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
Staff is recommending City Council approval of a 9.2% increase in park dedication fees in lieu
of land effective January 1, 2015 as follows:
Single Family
$ 3,781 /lot
Townhouse
$ 2,572/du
Multiple Family
$1,972/du
Residential
Assessors Est. Market Value
Taxes Payable
Property number
2015
2014
2015-2014
22-01200-02-010
951,900
871,900
9.2%
22-01700-75-020
762,500
698,300
9.2%
22-02000-01-022
905,100
829,000
9.2%
22-02000-79-011
928,800
850,700
9.2%
22-02100-30-011
415,400
380,500
9.2%
22-02100-50-010
1,736,200
1,590,100
9.2%
22-02300-75-013
688,200
630,300
9.2%
22-02600-05-010
494,700
453,100
9.2%
22-02700-26-010
2,710,100
2,482,100
9.2%
22-41600-00-030
235,400
215,600
9.2%
22-02800-75-016
1,001,300
917,100
9.2%
22-02800-75-050
1,565,300
1,433,700
9.2%
22-02700-26-010
2,710,100
2,482,100
9.2%
22-02700-25-010
1,804,300
1,652,500
9.2%
22-02100-78-020
95,200
87,200
9.2%
22-02100-50-010
1,736,200
1,590,100
9.2%
22-02100-76-020
799,800
732,400
9.2%
22-02100-02-010
794,000
727,200
9.2%
22-01600-80-011
520,500
476,600
9.2%
22-01600-51-010
554,500
507,900
9.2%
22-01500-51-010
464,900
425,800
9.2%
22-01500-26-023
1,095,700
1,003,500
9.2%