Recommend Cash Contribution Rates for Park Dedication and Trail Fees for 2014.

Description of Park Dedication and Trail Fees
Any time new development occurs within the city of Ramsey, the subdivision or parcel 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).

Dedication is calculated based on the size of a development and the density, as well as residential versus commercial/industrial 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' is critical 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 – however, the last several years there have been no increases to Park Dedication nor 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 is useful, development fees must respond to a legitimate need associated with the change in land use (increased densities) and thus the next section is what actually informs Park Dedication and Trail Fee rates.

Lastly, park land and 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, with the forecast improvements often out-pacing revenue from Park Dedication and Trail Fees.

As mentioned above, Park Dedication and Trail Fees have been 'static' for several years. This reflected depressed land values and little development activity associated with the Great Recession.  As these trends are reversing, and new 'demand' for parks and trails is at the same time being created by increased development - it is appropriate for the Commission to recommend to City Council the aforementioned rate structure for 2014, and thus the purpose of this case.

N/A

Staff recommends amending the cash Park Dedication rate per residential unit approximately 5 percent from $2,475 (existing rate) to $2,600 - with no increase for the commercial/industrial subdivision of land.

Trail Fees are recommended to be increased from $600 to $700 per residential dwelling unit, again with no proposed changes to commercial/industrial land uses.

 Motion to recommend to City Council a 2014 cash Park Dedication rate per residential unit of $2,600 - with no increase for the commercial/industrial subdivision of land.

-and-

Trail Fees to be increased from to $700 per residential dwelling unit, with no proposed changes to commercial/industrial land uses above the 2013 rates.