PARK BOARD ITEM- Nate Monahan, Recreation Manager
Title
RECOMMENDATION FOR ESTABLISING 2017 PARK DEDICATION FEES FOR THE CITY OF BLAINE
Body
BACKGROUND:
Revenue for the capital improvement plan comes from park dedication fees required of all new residential, commercial and industrial development. Park dedication fees are adjusted annually by the percentage of increase in the fair market value of undeveloped land within the City with an annual increase not to exceed 10%. The Park Board recommended and the City Council approved a 10% residential and no increase for commercial, and 5% industrial increase for 2016 park dedication fees. The current park dedication fee structure is as follows:
• $3,744 per residential unit.
• $8,704per acre of commercial development.
• $6,093 per acre of industrial development.
Staff is recommending the Park Board consider another increase for residential park dedication fees for 2017 based on the following:
• Blaine still ranks 8th out of 13 in residential fees for metro cities in the attached 2016 Comparison for Park Dedication Fees. Residential park dedication fees have been near the bottom since surveys have been conducted by the Parks and Recreation staff. Blaine is ranked in the middle of the cities for commercial fees.
• The Planning Department estimates a continued increase in new housing permits and of greater importance new land development. Future parks, open space and trail development should keep pace with this growth through measured annual increases in park dedication fees.
The following table illustrates how increases from 1% to 10% would affect the 2016 park dedication fee structure.
|
Development |
Current |
1% |
2% |
3% |
4% |
5% |
|
Residential |
$3,744 |
$3,781 |
$3,818 |
$3,855 |
$3,892 |
$3,929 |
|
Commercial |
$8,704 |
$8,791 |
$8,878 |
$8,965 |
$9,052 |
$9,139 |
|
Industrial |
$6,093 |
$6,154 |
$6,215 |
$6,276 |
$6,337 |
$6,398 |
|
|
|
|
|
|
|
|
|
Development |
Current |
6% |
7% |
8% |
9% |
10% |
|
Residential |
$3,744 |
$3,966 |
$4,003 |
$4,040 |
$4,077 |
$4,114 |
|
Commercial |
$8,704 |
$9,226 |
$9,313 |
$9,400 |
$9,487 |
$9,574 |
|
Industrial |
$6,093 |
$6,459 |
$6,520 |
$6,581 |
$6,642 |
$6,703 |
Park Dedication Fee Discussion Point:
Should the City establish residential, commercial and industrial park dedication fees for 2017 that are the same, more, or less than 2016?
RECOMMENDED PARK BOARD ACTION
By motion, recommend the City Council to establish park dedication fees for 2017 with an increase of ____% for residential/unit, ____% for commercial/acre and ____% for industrial/acre.
OR
By motion, recommend the City Council to establish park dedication fees for 2017 with no increase.
ATTACHMENTS
2016 Comparative Park Dedication Fees