Recommend 2026 Park Development Fees

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. 

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 [land]. The cash payment is then used for current/future park development within the city. 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 that new development brings.

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 in the urban areas; 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 City Council annually, for ‘cost of living’ adjustments each year as part of the Rates and Charges analysis. In earlier years there have been minor increases to Park Dedication and Trail Fees, and there were no increases adopted for 2020, 2021 nor 2022. For 2023 Council increased certain Park Dedication and Trail Fees based upon the Park & Recreation Commission's recommendation—for year 2024 and 2025 there were no increases (over those adopted for 2023).

Further, Ramsey’s rates are sometimes compared to similar suburban cities in the metropolitan area, as well as our immediate neighbors  - however, while this may be useful, development fees must respond to a legitimate need associated with the change in land use (increased residents, greater densities and more 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 following a recommendation by the Commission. This plan is a reflection of community need (then also, presumably in corresponding development fees)—with the forecast improvements sometimes outpacing anticipated revenue from both Park Dedication and Trail Fees.







 

Prior to adoption of the 2026 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.

|As indicated above, during detailed and comprehensive discussions on Park Dedication and Trail Fee cash contribution rates in both 2021 and 2022, the Park & Recreation Commission recommended increases that were adopted by City Council for calender year 2023—and again, there were no increases adopted for 2024 or 2025. The attachment to this case shows the current rates and schedule in effect today.

 

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—for the development of new park and trail improvements, (not maintenance, which is funded by the General Fund Levy).

Staff Recommends no change to the Park Dedication or Trail Fees for 2026, as represented in the attached [partial] 2025 schedule of development fees.
  

 

Motion to recommend to City Council Park Dedication and Trail Fees for 2026, based upon discussion.