HomeMy WebLinkAboutItem 04City of Lakeville
Community & Economic Development
Memorandum
To: Economic Development Commission
From: David Olson, Community and Economic Development Director
Copy: Justin Miller, City Administrator
Kati Bachmayer, Economic Development Specialist
Date: August 27, 2019
Subject: Presentation on City Development Fees
City Administrator Justin Miller will be participating in a panel discussion at a meeting of the Sensible
Land Use Coalition on September 18th. The topic of the session is “Priced Out – Cities Response to
Affordable Housing.” Housing First Minnesota (the new name for the Builders Association of the Twin
Cities) earlier this year released a report titled “Priced Out: The True Cost of Minnesota’s Broken
Housing Market” that attempted to document the impact of regulatory pressures and the impact
these regulations are having on the affordability of new housing construction in Minnesota.
Justin will be one of four City representatives speaking at the Sensible Land Use Coalition meeting to
give the cities’ response to information contained in the Housing First Report. He will review with the
EDC Lakeville’s response to this report. Attached is a recent article on this issue from the StarTribune
and information on development fees in Lakeville that Justin will be presenting.
This is an informational agenda item and thus no action is needed. Questions and comments from
EDC members are encouraged.
O N A $4 1 5 K H O U S E , 4 .1 % O F T H E
P R I C E , O R $1 7 K * I N C I T Y F E E S ,
P R O V I D E S N E W H O M E O W N E R S :
PARK DEDICATION
$4294
Construction of new parks and trails
STORM WATER MANAGEMENT
$2332
Keeps storm water in the right place &
protects wetlands, rivers & streams
WATER CONNECTION
$4100
Funds water towers, treatment facilities
& wells needed for a growing city
NEW ROADS INSPECTED
$1110
Developers build the roads, but the City inspects &
monitors construction to ensure they are built correctly
SANITARY SEWER CONNECTION
$825
When you flush, that stuff needs to travel through
pipes to regional treatment facilities
TRAFFIC CONTROL,
STREET SIGNS & MAP FEES
$140
New streets need signs & street lights; data is shared with
map applications so friends & family can find your home
$3271*
Average 15-20 inspections to ensure
house is built safely & to code
BUILDING INSPECTION
*Complete details on reverse side
ESTIMATED CITY FEES ON
A NEW $415K HOUSE
Permit valuation is based on average new home built in 2019.
Development phase data is based upon 11 plats currently under development (456 units).
$3271
HOUSING AFFORDABILITY INSTITUTE HOUSINGAFFORDABILITYINSTITUTE.ORG58
BUILDER B
LAKEVILLE, MN | 2,500 SQ FT | $402,990 SALES PRICE
For the City of Lakeville in the south metro, Builder B provided
information on a phased development, with the costs of
infrastructure paid at the initial phase allocated across the lot
in the nal development. This development included a private
pool for the Homeowners Association, which added $5,614 to
the home.
Per the agreement with the city, the developer was responsible
for the standard improvements of streets and utilities within
the development, as well as osite improvements to a local
road, which cost $2,614 per home. Trails were also included
in the development agreement and the developer was given
partial credit for park fees already paid. Oversizing sewer and
water lines added $8,923 per home.
HOME PRICE TOPLINES $402,990.00
LAND COSTS $99,271.00
ADMINISTRATION $59,128.00
CONSTRUCTION $220,412.00
PROFIT $24,179.00
LAND COSTS $99,271.00
Raw $29,086.00
Necessary Improvement $48,638.00
Other Improvements $21,990.00
INFRASTRUCTURE $27,260.00
Met Council Fees $6,585.00
Trunk & Connection Fees $1,232.00
In-Dev Infrastructure $8,966.00
Area Wide Improvements $2,614.00
Grading $7,863.00
ENGINEERING $12,876.00
Plan/Design $12,786.00
Other
Wetland
STORMWATER $9,034.00
Construction Stormwater $4,000.00
Permanent Treatment $5,034.00
GREEN SPACE $9,695.00
Park Dedication $3,781.00
Tree Preservation/Landscape $300.00
Other Open Space $5,614.00
CONSTRUCTION $220,412.00
Labor & Materials $209,593.00
Permitting $10,819.00
CODE & REQUIREMENTS
CHANGES SINCE 2015 $10,200.00
BUILDING CODE $2,950.00
Window Fall Protection $450.00
Basement Rocking $1,000.00
Passive Radon $1,500.00
Misc.
PLUMBING CODE:
BACKFLOW PREVENTER $250.00
ENERGY CODE $7,000.00
Rating & Testing $1,000.00
Ext. Foundation Insulation $2,000.00
Balanced Ventilation $2,500.00
Rigid Ducting $1,500.00
CITY INSPECTION/REVIEW $7,830.00
Building Permit Fees
(Less SAC & WAC) $7,234.00
Plan Review $596.00
Inspections (10)
HOME OVERVIEW
Bedrooms 4
Bathrooms 38
Basement Unnished
Garage Stalls 3
Eciency Rating (HERS) 51
Lot Size 0.20 Acres
TOTAL HOME COSTS
Construction Administration
Land Costs Prot
23.90%
15.41%
54.69%
6%
REGULATORY COSTS 20.78%
ADMINISTRATION $59,128.00 PROFIT $24,179.00
APPENDIX C: COMPARATIVE ANALYSIS
Not required
No recognition of
credits to developers
=$83,741?
How is this
calculated?
Doesn't add
up.
*City comments highlighted below