Discussion:
Park Dedication Fees
Development is increasing within the city and many of the city fees are under review. The current park dedication fees have not been revised since 2005. Revisions to the fees have been recommended over the last 10 years however the fees remain unchanged. There is a potential for a number of higher density housing projects which have encouraged the city to review the park dedication fees. In many studies the city's park dedication rate is higher then average for both single family ($5,340/unit) and multi-family ($4,450/unit) residential housing development and below average for commercial/industrial ($6,930/acre) development.
The park dedication fees collected are used to construct new parks within the city for the residents of Shakopee to enjoy. The city also wants to encourage development or redevelopment that offers the residents nice places to live and work. To find the balance between the fees needed to construct the park system and encouraging development, data was collected from a number of metropolitan cities including 10 cities that have been designated as comparable cities to Shakopee.
After reviewing the data collected staff and the PRAB is recommending that the fees for single family ($5,340/unit) and townhouses ($4,450/unit) remain unchanged and the fee for commercial/industrial development increase from $6,930/acre to $11,000/acre. The increase to the commercial/industrial fee is calculated utilizing a formula that the city has used in the past to determine this fee. The formula averages current land sale prices divided by a dwelling per unit amount of 2.5 multiplied by 10%. The cost per dwelling unit is then multiplied by 2.5/acre to get the per acre price. ($110,000/acre/2.5 DUA *10% = $4,400*2.5 DUA = $11,000/acre).
The recommended changes to the multi-family fees are based on the kind of units being proposed:
Market Rate units with less than 60% 1BR and studios $4,450/unit (unchanged)
Market Rate units with more than 60% 1BR and studios $2,225/unit
Projects in redevelopment areas will be discussed as part of the Redevelopment TIF.
The reduced rate for projects that have more then 60% 1BR and studios is based on the fact that typically 1-2 people are living in each smaller unit, versus 2-6 people living in 2 or 3 bedroom units. Projects in redevelopment areas are unique to the City of Shakopee and relate only to the downtown district or possible Canterbury Park area. These area have a number of challenges and higher costs of development due to reduced space and existing facilities and infrastructure. The City Council has the ability to negotiate the park dedication fees for Redevelopment TIF projects.
City Code Revision
Minor revisions to City Code Section 150.65, Parks and Dedications are recommended to clarify the expectations of the developer pertaining to trail development and the calculation of park dedication fees. As part of any development it has been required that the developer construct all public trails. The developers have complied with this requirement in the past. To make it clear to developers moving forward the requirement has been added to the City Code.
In addition, in calculating park dedication fees or land to be dedicated all wetland, ponding and city accepted drainageways and utility easements were deducted. The ordinance states in item B.10 that "Buildable" park land must be dedicated. Wetlands and ponding are not considered buildable park land and are therefore are still removed from the calculation however land that has a drainageway and/or utility easement through it is still buildable parkland. Drainageways and utility easements have therefore been removed as a deduction to the park dedication calculation.