Park Dedication Obligations and Credit for the Development Agreement for the Riverstone Addition

For the last several months, the specifics of Park Dedication (land, cash or improvements to the proposed mini-park) for the proposed Riverstone Subdivision has been discussed between Capstone Homes and the City.  There is strong consensus on providing credit for the land needed for the greenway trail and the associated improvements.  There remains to be clear consensus on aspects of Capstone's proposed mini-park, commonly known as Outlot C.

Due to no agreement on the matter of Outlot C, Staff brought the matter to the Council work session on April 25th, 2017 in light of the long-standing policy "...to favor larger, accessible neighborhood and community public parks with quality amenities and improvements, and provide trail connections between them, over smaller, pocket parks with few to no 'destination' improvements."  This discussion was intended to address whether the City should consider full, partial, or no Park Dedication credit for Outlot C proposed by the Developer. (Please see case 2.2 of the April 25th work session for additional information).  The outcome of the above work session topic was to address the policy itself.  This occurred as part of a joint meeting between Council and the Park and Recreation Commission meeting on May 9th, 2017.

The aforementioned joint meeting and policy review was conducted using examples of past precedent relating to Planned Unit Developments and private park spaces. Additionally, Outlot C was the subject of much discussion on whether it was necessary (as a park—public or private), and if so, to what degree might Park Dedication credit be offered. The consensus reached was "to create an interim exception [to the policy] that would allow for negotiations on this development case for a trail system and trail wayside park area that would be accessible and inviting." 

Following the joint meeting, Staff prepared alternatives for Park Dedication relating to Outlot C which was the subject of considerable discussion at the Park and Recreation Commission meeting on May 11th, 2017.  These alternatives are now synthesized as the 3 alternatives relating to Outlot C below.  (Please see the draft May 11th meeting minutes for important details from the Commission's discussion.)

Note:  Following Council direction on which alternative should be the basis for crafting the Park Dedication for the Riverstone Subdivision, Staff and Capstone Homes will come into agreement on the remaining details within a draft Development Agreement.  This Development Agreement will be appurtenant to the Preliminary Plat that the Park and Recreation Commission will recommend at their regular meeting on June 9th, 2017.  (City Council is anticipated to consider the Preliminary Plat on June 13th, 2017.)

The alternatives below relate to the Park Dedication consideration for Outlot C. Outlot D will be developed as a landscaped and irrigated park-like area for the residents of the Riverstone Subdivision—the Developer is NOT requesting park Dedication for Outlot D. Additionally, the Development Agreement will provide full credit for the 14' foot greenway trail easement and the associated construction costs. 



Alternative 1.    Outlot C — Not Credit Eligible
Matches Existing Parks and Trail Plan and Park Development Policy — Staff can continue to support this alternative, as it is believed that Capstone may develop the mini-park without Park Dedication credit, thus serving their development, and accordingly not impact the City’s General Fund budget operational cost for park maintenance.  However, if the mini-park is owned by the homeowners association, the public may be excluded.  There can be a tangible benefit to a ‘recreational node’ near the future Lake Itasca Greenway.

(The Park and Recreation Commission generally supports this alternative)


Alternative 2.    Outlot C  — Primarily Credit Eligible
This is the May 11, 2017 Staff Recommendation—provided the mini-park development ‘unique’ (nature-based play) and ancillary to greenway trail (either contiguous, or effective and safe pedestrian crossing of adjoining street). No land credit for the mini-park area is calculated under this alternative, as the Developer is requesting the mini-park and deviation from the Park Plan and Park Development Policy.  The land dedication for the mini-park (approximately one acre), is thoroughly consistent with the requirements of Planned Unit Development (PUD), which is the land use mechanism under which the Riverstone Subdivision is to be developed.
 

Outlot C 'park'	Park Ded. credit
Nature Based Playground	$100,000
Landscaping, irrigation (with H2O feature for play area)	$100,000
Pavilion	$50,000
Parking (parallel to street)	$4,620
On-street pedestrian safety treatments (50% Park Ded. 50% Developer	$5,000
Benches (4)	$7,680
Drinking fountain and mister w pet attachment	$8,000
Water and sewer services/stubs (Developer expense)
Sidewalk(s) parallel to street (Developer expense)
Total not-to-exceed Park Dedication credit amount	$275,300

Max Credit = $275,300 (if other improvements are desired by the developer E.g. monument/sign, these shall be at the developers expense).

The Development Agreement (DA) shall specify that the park shall be developed as a Stage I improvement and be substantially complete by August 1st 2018.  Additionally, all improvements and specifications shall be pre-approved by the City, with the Developer bearing all costs of bidding, administration, permitting (if any) as well as construction administration. The park construction agreement (specified within the DA) will be a reimbursable project, with the developer paying all cash Park Dedication owed, with the City issuing associated payment for each improvement as they are completed and accepted—for a total not-to-exceed amount of $275,300.

(Staff supports this alternative.  The Park and Recreation Commission may support this alternative)



Alternative 3. Outlot C — Full Park Dedication credit consistent with Capstone's April Park Dedication memo (attached).

(The Park and Recreation Commission does not support this alternative. Staff does not support this alternative)


 

This case determines the disposition of Park Dedication as a development fee.

Staff recommends that Alternative 1 or 2 be selected as the framework to fulfill Park Dedication Obligations and Credit for the Development Agreement for the Riverstone Addition

Motion to direct staff to proceed with alternative ______ as the framework to fulfill Park Dedication Obligations and Credit for the Development Agreement for the Riverstone Addition