Recommend 2021 Park Development Fees and Rates and Charges

Note: this case is a part of the city's annual Adoption of Rates and Charges, and relates specifically to a portion of development fees, pertaining to the subdivision of land. (The park reservations and facility rental fees are attached/included to this case as a point of reference, and are not needed to be addressed by the Commission.)

Description of Park Dedication and Trail Fees
Any time new development occurs within the city of Ramsey, the subdivision of land is evaluated for parks and trail needs. If park land is not needed, the City of Ramsey will accept cash in lieu of physical Park Dedication. The cash payment is then used for current/future park development. The same evaluation of the physical need versus a cash equivalent is true for both Park Dedication (land or cash) and Trail Fees (trail construction or cash).  However, it may be noted that sidewalks in the MUSA and trails along arterial roadways in the city, are required as essential infrastructure (no credit assessed against development fees).

Park Dedication is calculated based on the size of a development and the density, as well as residential versus commercial/industrial land use and rates; and is listed within the city’s annual Rates and Charges.

Purpose
The city recognizes that parks, trails, and open space are essential to the health, safety and welfare of the residents of the city and persons working in the city, and that the character and quality of the environment as well as recreational opportunities are of major importance - and therefore 'Park Dedication' and 'Trail Fees' are critical development fees in the planning and development processes of the city.  The city must not only provide these necessary amenities for our citizens today, but also be insightful to the needs of future residents.

Methodology and History
Rates for land dedication have remained fairly static for several decades – however there have been some minor changes now that greater densities are permitted; and there were formulaic changes for land uses that have demonstrable lower ‘demand’ for parks and open-space (E.g. memory care centers).

Additionally, the acreage/fee structure is reviewed by Council annually, for ‘cost of living’ adjustments each year as part of the Rates and Charges analysis – the last several years there have been minor increases to Park Dedication and Trail Fees.

Further, Ramsey’s rates are compared to similar suburban cities in the metropolitan area, as well as our immediate neighbors on an annual basis - however, while this may be useful, development fees must respond to a legitimate need associated with the change in land use (increased densities and park and trail users) and thus the following is what actually informs Park Dedication and Trail Fee rates.

In concluding, park land and park and trail improvements themselves are identified within the Parks Capital Improvement Plan – which is adopted each year by City Council. This plan is a reflection of community need (then, in corresponding development fees), with the forecast improvements often out-pacing revenue from both Park Dedication and Trail Fees.







 

Prior to adoption of the 2021 Rates and Charges Schedule, City Council will conduct a Public Hearing.  Park Dedication and Trail Fees are a part of this schedule and Public Hearing.

The new 'demand' for parks and trails is continues to increase with new residential development - thus the requirement for the Commission to recommend to City Council an appropriate rate structure for 2021 within the Rates and Charges Schedule, and the purpose of this case.

The most recent year (2019) development fees were adjusted, Staff did recommend an increase of 2% or less, in the following categories; cash Park Dedication per Residential Unit ($50), Commercial/Assisted Living Facilities ($100 per acre), and Industrial ($75 per acre). This was supported by the Park and Recreation Commission, and adopted by City Council in November 2018 as part of Rates and Charges for 2019.

Rates have not been increased since.  

Funding is not required for this case, rather Development Fees are required to off-set demand on the park and trail system from new development in the city.

As there have not been substantive changes (increases) in development activity trends, nor notable increases in the cost of constructing facilities (park and trail infrastructure), or significant additions to the Capital Improvement Plan, coupled with the uncertainty/impacts of Covid-19 on Ramsey's economy—staff is not recommending any changes to the development fee structure for 2021.  

Further, it may be noted that, Trail Development Fees were not recommended for an adjustment for either 2019 or 2020.  Staff supports maintaining the Trail Development Fee as static again for 2021.

Motion to recommend to City Council maintaining Park Dedication and Trail Fees at the existing rates, for 2021, to include the residential per unit fees - and including the per acre rates for the commercial/industrial subdivision of land.