HomeMy WebLinkAboutResolution 2016-51 COR16-006 Findings of Fact Resolution Park DedicationCity of Corcoran
County of Hennepin
State of Minnesota
RESOLUTION NO. 2016 -51
Motion By: Hank
Seconded By: LaFave
July 14, 2016
A RESOLUTION APPROVING FINDINGS OF FACT FOR AN ORDINANCE AMENDING THE
TEXT OF CHAPTER 9 OF THE CORCORAN CITY CODE,
ENTITLED CORCORAN SUBDIVISION ORDINANCE
WHEREAS, the City of Corcoran initiated an amendment to update the Subdivision Ordinance
requirements for the dedication of land for park, trail and open space purposes; and
WHEREAS, the dedication requirements established by Section 955.020, Subd. 6 of the City
Code were reviewed in 2011 and based on the City's adopted Comprehensive Plan, and the
projected costs for acquisition and construction of the planned park system; and
WHEREAS, the City has updated the land values and construction cost assumptions on which
the dedication requirements are based, and calculated the proportionate share of park system
costs that shall be contributed by new developments to ensure that park dedication
contributions are fair and adequate to fund the planned park system; and
WHEREAS, the results of this analysis are summarized in Exhibit A, attached; and
WHEREAS, amendments to the Subdivision Ordinance incorporate revised dedication
requirements for the various land use categories of the Comprehensive Plan, clarify how
dedication will be calculated for partial dedications of land and mixed land use developments,
and include language regarding the determination of fair market value to reflect 2013 changes
to Minn. Stat. Section 462.358, Subd. 2b; and
WHEREAS, amendments to the 2016 Fee Schedule will also be necessary to adopt new park
dedication fees to be paid in lieu of land dedication;
WHEREAS, the Planning Commission has reviewed the proposed amendments to the
Subdivision Ordinance at a duly called public hearing and recommends approval;
NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF
CORCORAN, MINNESOTA, that it should and hereby does approve the Subdivision Ordinance
text amendment based upon the finding that the proposed amendments would be consistent
with State law, City policies and the City's Comprehensive Plan, and compatible with other
provisions of the City's Subdivision Ordinance and Zoning Ordinance.
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City of Corcoran
County of Hennepin
State of Minnesota
VOTING AYE
® Guenthner, Ken
❑ Keefe, Mike
® LaFave, Tonya
® Hank, Pat
® Thomas, Ron
RESOLUTION NO. 2016 -51
VOTING NAY
❑ Guenthner, Ken
❑ Keefe, Mike
❑ LaFave, Tonya
❑ Hank, Pat
❑ Thomas, Ron
July 14, 2016
Whereupon, said Resolution is hereby declared adopted on this 14th day of July 2016.
Kenneth Guenthner - Mayor
ATTEST:
/l1 - jouoa( .
Jessica Beise— City Clerk /Administrative Services Coordinator
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City Seal
City of Corcoran
County of Hennepin
State of Minnesota
RESOLUTION NO. 2016 -51
EXHIBIT A
Summary
Calculation of Park Dedication Requirements
July 14, 2016
Park dedication requirements are based upon the cost of acquiring and constructing the Parks
and Trails system envisioned by the City of Corcoran's Comprehensive Plan. The share of land
to be dedicated within new subdivisions, or cash to be paid in lieu of land dedication, is
apportioned based on the expected demand generated by the new residents of the community.
Park System Costs
The components of park system costs are land and park construction costs. The assumptions
on average land value are based upon consultations with the City Assessor.
Table 1: Land Value Assumptions
2011 Assumption 2016 Assumption
Land Use Land Value per Acre Land Value per Acre
Non -MUSA Residential $ 20,000 $ 10,000
Low and Medium Density Residential $ 80,000 $ 80,000
(MUSA)
High Density Residential and $ 100,000 $125,000
Commercial /Industrial
In 2011, the cost of acquiring and developing the planned park system was estimated as
$42,474,750. In 2016, the cost estimates were updated using the new land value assumptions,
the Turner Construction cost index, and recent trail planning estimated from Hennepin County.
The 2016 cost estimate for the park system is $60,216,200.
Park System Demand
New residential development is expected to create 95% of the need for park and recreational
land and facilities in Corcoran. Projected demand for parks and trails was estimated for each
type of land use, based on the density and type of dwelling units expected to be developed in
each land use category of the Comprehensive Plan. Rural /Ag Residential and Low Density
Residential developments are assumed to be single family detached dwellings (average
household size of 2.8 persons) and the remainder area assumed to be attached dwellings
(average household size of 1.9 persons.)
Table 2: Expected Population Density by Land Use Category
Land Use Category HH Size Units /Acre Persons /Acre
Rural /Ag Residential
2.8
0.1
0.28
Low Density Residential
2.8
3
8.40
Medium Density Residential
1.9
5
9.50
Mixed Residential
1.9
8
15.20
High Density Residential /Mixed Use
1.9
10
19.00
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City of Corcoran July 14, 2016
County of Hennepin
State of Minnesota
RESOLUTION NO. 2016 -51
Table 3 shows the maximum population at full build -out of the City at the minimum densities
projected by the Comprehensive Plan
Table 3: Expected Population at Build Out
Land Use Category Acres
Persons
per Acre
Population
Rural /Ag Residential
1,240
0.28
347
Low Density Residential
2,716
8.40
22,814
Medium Density Residential
147
9.50
1,397
Mixed Residential
555
15.20
8,436
High Density Residential /Mixed Use
386
19.00
7,334
Mixed Residential
15.20
21,561
40,328
Each new resident's proportionate share of the park system is the cost of the park system
($57,205,390 after deducting the 5% share for non - residential development) divided by the
population served (40,328) to equal the per capita share: $1,418.
The per capita share was multiplied by the number of persons per acre to determine the park
dedication that must be contributed for each acre of land to be developed. Comparing that
amount to the value of the land yields the new percentage of land value to be dedicated in each
land use category, shown on Table 4.
Table 4: Proposed Dedication by Land Use Category
Land Use Category
Persons
per Acre
Dedication
per Acre ($1,418
per capita)
Land Value
per Acre
% Land
Value
Rural /Ag Residential
0.28
397
$
10,000
4%
Low Density Residential
8.40
11,915
$
80,000
13%
Medium Density Residential
9.50
13,476
$
80,000
15%
Mixed Residential
15.20
21,561
$
80,000
24%
High Density Residential /Mixed Use
19.00
26,951
$
125,000
19%
For Commercial /Industrial Development, the % of land value was calculated by dividing its
share of park costs (5% of the total cost, or $3,010,810) by the total acres of land (728) to yield
the contribution per acre ($4,135.) This is approximately 3% of the land value ($4,135 divided by
$125,000 per acre.)
Table 5 compares the total potential dedication based to the projected cost of the park system.
This table demonstrates that the dedication requirements are necessary and sufficient to fund
the park system anticipated by the Comprehensive Plan.
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City of Corcoran
County of Hennepin
State of Minnesota
RESOLUTION NO. 2016 -51
Table 5: Potential Park Dedication Cash Value Compared to Total Cost
July 14, 2016
Cash in Lieu of Land Dedication
If the City determines that land is not needed in the area of a proposed subdivision, a cash fee
in lieu of land dedication may be required. For residential developments, the cash in lieu of land
fee has been calculated based on the per capita share of park system costs as calculated
above ($1,418.) The fee for single family units shall be $1,418 X 2.8 (the average household
size) or $3,970. The fee for multi - family units shall be $1,418 X 1.9, or $2,694.
The City will annually update its estimate of land values, as required by state law and as
provided by the amended ordinance. The cost estimates and the park dedication formula and
fees will be updated and amended as necessary.
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% Land
Land Use Category
Acres
Dedicated
Land Value
Cash Value
Rural /Ag Residential
1,240
4%
$ 10,000
496,000
Low Density Residential
2,716
15%
$ 80,000
32,592,000
Medium Density Residential
147
17%
$ 80,000
1,999,200
Mixed Residential
555
27%
$ 80,000
11,988,000
High Density Residential /Mixed Use
386
22%
$ 125,000
10,615,000
2,730,0
Commercial and Industrial
728
3%
$ 125,000
00
Total Potential Value of Land or Cash in
Lieu
$ 60,420,200
Approximate Cost of Park System
$ 60,216,200
Difference:
$ 204,000
Cash in Lieu of Land Dedication
If the City determines that land is not needed in the area of a proposed subdivision, a cash fee
in lieu of land dedication may be required. For residential developments, the cash in lieu of land
fee has been calculated based on the per capita share of park system costs as calculated
above ($1,418.) The fee for single family units shall be $1,418 X 2.8 (the average household
size) or $3,970. The fee for multi - family units shall be $1,418 X 1.9, or $2,694.
The City will annually update its estimate of land values, as required by state law and as
provided by the amended ordinance. The cost estimates and the park dedication formula and
fees will be updated and amended as necessary.
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