6.a Discussion on amending Park Dedication Requirements for Subdivisions
Memorandum
To: Scandia Planning
Commission
Reference: Park Dedication Requirements—
Potential Ordinance Amendment
Copies To: Neil Soltis, City
Administrator
Brenda Eklund, City Clerk
Project No.: 16623.000
From: Sherri Buss, RLA AICP,
Planner
Routing:
Date: February 7, 2018
The City Council had a recent discussion about funding for park improvements and the City’s
park dedication requirements. The park dedication requirements are Section 12 of the
Subdivision Ordinance (Chapter 3 of the Development Code).
Council members questioned why the City had granted exemptions or deferments from park
dedication for lots created in some recent subdivisions, including:
A outlot that was created as part of a subdivision. The subdivision conditions stated that
the outlot may not be developed for residential use. The conditions stated that if the
outlot were developed for residential use in the future, the City could require payment of
the park fee at that time.
A minor subdivision that created a new vacant parcel and a parcel with the existing
home. The park dedication fee was charged to the vacant parcel, but not to the parcel
with the existing home. The fee for the new vacant parcel was deferred until the owners
apply for a building permit (typically the fee must be paid prior to filing the final plat).
Lots created that are 20 acres or larger in size with at least 500 feet of road frontage.
The Subdivision Ordinance specifically exempts such parcels from the typical
subdivision process and requirements. (Chapter 3 of the Development Code, Section 1.5
(1).
The Council also discussed a sentence in the current ordinance that states that “A developer
may request a deviation from the presumptive requirements based upon the anticipated impact
of that particular subdivision. The request must be made as part of the application for a final
plat approval.” A copy of the ordinance with the phrase highlighted is attached.
The City Administrator asked the Attorney to reflect on the three examples, and recommend
whether the park dedication fee could be charged in these cases. The Attorney’s memo cites
the State Statute that allows Cities to charge park fees for development, and interprets the
intent of the statute for each example:
Park Dedication Requirements Page 2 February 13, 2018
Scandia Planning Commission
1. Minn. Stat. 462.358, subd. 2c requires an “essential nexus” between park dedication
fees and the “municipal purpose” sought to be achieved by the fees. The fees also must
bear a “rough proportionality” to the need created by the proposed subdivision or
development. In the case of the outlot, there is no need or municipal purpose created
by the subdivision, since the outlot is not eligible to be developed. Requiring park
dedication fees from that outlot would violate the essential nexus requirement, since
there is no municipal purpose to receive fees for future park improvements from a lot
that will never create any burdens or demands. This conclusion also seems consistent
with Section 12.1 of the Subdivision Ordinance, which lays out the purpose and findings
for park dedication requirements. Also, for phased developments that include outlots,
the Ordinance at Section 12.5(3) allows the developer to decide whether to pay the
entire park dedication fee or exclude the outlots, with payment due when the outlots
are replatted for future phases. If a non-phased outlot is replatted or resubdivided in
the future, then it would probably become eligible for park dedication fees, depending
on what the project is. But fees at the time it is deemed to be an outlot, in my view,
does not fall under the intent of the statute.
2. I agree, these larger lots created under Section 1.5(1) of the Subdivision Ordinance are
not applicable to park dedication fees based on the current ordinance language. One
rationale for this is perhaps these larger subdivided lots are going to be agricultural
lands, thereby not creating much if any further demand on the parks system. And,
these subdivisions are exempt from all requirements in Chapter Three, which would
include issues related to premature subdivisions, lot line adjustments, minor
subdivisions, etc., not just park dedication and park dedication fees.
3. Again, requiring a parks dedication fee to be paid by an existing house does not comport
with the underlying state statute, and certainly the City’s S ubdivision Ordinance. What
is the municipal purpose for charging park dedication on a house that has existed for
some time? What if the house is 100 years old? I don’t see how we could make a
finding that the house is creating demands on the municipal park system such that a fee
should be extracted. Under Section 12.1 of the Subdivision Ordinance, “[n]ew
development creates the need for new parks, open spaces and trails…” For the new
subdivided lots, certainly park dedication would be required. And yes, if the house is in
a newer development, there is likely a park dedication fee that has already been
received, which is then specifically exempted from the requirements.
You are likely familiar with U.S. Supreme Court precedent that turns a skeptical eye
towards land or fee extractions made by municipalities from land developers. The
nexus and rough proportionality tests in state law come from those Supreme Court
decisions. So the burden is really on the municipality to show that park dedication fees
in this case are warranted, over and above what is already required by state law and
code. It would behoove the City to fall on the more conservative side of this ledger.
Park Dedication Requirements Page 3 February 13, 2018
Scandia Planning Commission
The Attorney’s comments suggest that the City may not charge park dedication fees for outlots
that will not be developed, or for lots with existing homes, but he noted that a change could be
considered to item #2. Based on his comments, the Planning Commission may consider a
couple of questions related to the Park Dedication ordinance, and recommend whether changes
should be made to the ordinance:
Should the Subdivision Ordinance section related to the 20-acre and larger lot sizes be
changed, so that these parcels are required to pay the park dedication fee? While some
of these larger parcels may be used for agriculture, most that have been developed
recently in Scandia have been developed with a single-family home. Residents of larger
parcels sometimes argue that they make little demand on local parks because their lot is
a “park,” but they may be trail or park facility users.
Should the “flexibility” sentence be removed from the ordinance? Some communities
have included this statement in their ordinances to allow developers of assisted living
communities or memory-care housing to request exemptions from the park dedication
fees, though the Scandia flexibility provision appears to be oriented toward “affordable”
housing and is not restricted to senior housing. Housing developers are generally aware
that the fees may be negotiated as part of the development approval process for unique
circumstances.
Do you see any other items that may need to be updated in the Park Dedication
ordinance?
The City has not changed its Park Dedication fee for about 10 years, since the ordinance
was last updated. The City Administrator reviewed the fees charged by neighboring
communities, and found that Scandia’s is comparable to those of its neighbors (spread
sheet attached).
If the Commission recommends some amendments to the ordinance, the City would schedule a
public hearing on the amendment(s) at the March Planning Commission meeting.
SECTION 1.0 PARK DEDICATION REQUIREMENTS
1.1 Purpose and Findings.
(1) Purpose. Pursuant to Minnesota Statutes, Section 462.358, Subdivision 2 (b), as amended and
this Chapter, all owners or developers, as a prerequisite to approval of a plat, subdivision or
development of any land, shall convey to the City or dedicate to the public use, a reasonable
portion of any such land for public use as streets, roads, sewers, electric gas and water
facilities, storm water drainage and holding areas or ponds, similar utilities and improvements
or parks, playgrounds, trails or open space, said portions to be approved and acceptable to the
City.
(2) Findings. The preservation and development of parks, trails and open spaces in the City of
Scandia are essential to maintaining our rural character, protect our natural beauty and
recognize our history. New development creates the need for new parks, open spaces and
trails which must be developed concurrently with development in order to implement the
Comprehensive Parks, Trails, Open Space and Recreation Plan and maintain the current level
of service and the quality of the environment for all. Therefore, new developments shall be
required to contribute toward the City’s park system in rough proportion to the relative burden
they will place upon the park system.
1.2 Dedication Required. In all developments, the owner of a subdivision shall, as prerequisite to
approval of a plat or minor subdivision, convey to the City land for the public use as parks,
playgrounds, trails or open space in an amount roughly proportional to the development’s share of
demands on the City’s park and trail system as set forth in this section. If the City determines that
land is not needed in the area of the proposed subdivision, the subdivider shall pay, in lieu thereof, a
cash contribution to the City, or a combination of land and cash dedication at the City’s discretion.
The dedication requirements of this chapter are presumptively appropriate. A developer may
request a deviation from the presumptive requirements based upon the anticipated impact of that
particular subdivision. The request must be made as part of the application for final plat approval.
A deviation may be considered if the development provides affordable housing to low and moderate
income persons, as defined by the Metropolitan Council.
(1) Calculation of Land Dedication Requirement
(A) Residential. In all new residential subdivisions, a minimum of 5% of the net area
subdivided shall be dedicated for public use. The net area shall be the gross area of
the subdivided property minus the area of wetlands, lakes and streams below the
ordinary high water mark. Land areas so conveyed or dedicated for park, playground,
trail and open space purposes shall be in addition to property dedicated for streets,
easements, drainage, ponding or other public ways, and shall be in addition to open
space requirements for open space conservation subdivisions pursuant to the Zoning
Code, as amended.
(B) Non-Residential. Park dedication for non-residential development will be negotiated
between the city and the developer. The land area to be dedicated, or the fee in lieu,
will be based on an evaluation of the potential need for parks, trails and open space
generated by the subdivision and whether or not there is land within the development
needed and/or planned for a park or trail in the Comprehensive Plan.
(2) Cash in Lieu of Land Dedication. The amount of cash to be paid in lieu of land dedication
shall be based on the fair market value of the land to be subdivided at the time of final plat
approval, multiplied by the percentage of land required to be dedicated in Section 12.2 (1),
above. Fair market value shall be determined as follows:
(A) The city and the developer may agree as to the fair market value; or
(B) The fair market value may be based upon a current appraisal submitted to the city by
the subdivider at the subdivider’s expense. The appraisal shall be made by appraisers
who are approved members of the SREA or MAI, or equivalent real estate appraisal
societies.
(C) If the city disputes such appraisal the city may, at the sudivider’s expense, obtain an
appraisal of the property by a qualified real estate appraiser, which appraisal shall be
conclusive evidence of the fair market value of the land.
(D) The developer may pay a cash fee of $3,000 for each residential unit created as the
presumptive fair market value of the land for which cash is paid.
(E) Cash and Land Combination. The city, upon consideration of a particular
development, may require that a lesser parcel of land should be dedicated due to
particular features of the development. In such cases, a cash contribution shall be
required in addition to or in lieu of the land dedication in order to ensure that the
development contributes to the park system in rough proportion to its impact.
1.3 Suitability of Land to be Dedicated.
(1) Any land to be dedicated as a requirement of this Chapter shall be reasonably adaptable for its
proposed use and shall be at a location convenient to the people to be served. Factors used in
evaluating the adequacy of proposed park and recreation areas shall include size, shape,
topography, geology, tree cover, access and location.
(2) Land conveyed or dedicated pursuant to provisions of this Chapter shall be located outside of
drainage ways, floodplains and ponding areas after the site has been developed.
(3) Subdividers shall be responsible for making certain improvements to the land dedicated for
park, playground, trail and public open space purposes including, but not limited to, finished
grading and ground cover for all park, playground, trail and public open spaces within their
developments. No credit toward the required dedication shall be given for this work.
1.4 Standards for Location.
(1) The Park and Recreation Committee shall make a recommendation to the Planning
Commission prior to preliminary plat approval, as to the location and type of park facility
required for each development. The Park and Recreation Committee shall consider the City
Parks, Trails and Open Space Plan, other resources, and factors of density and site
development in making its recommendation.
(2) Where a proposed park, playground, trail, open space or other recreational area that has been
indicated on the official map and/or Comprehensive Plan is located in whole or in part within
a proposed subdivision, such proposed sites shall be designated as such and shall be dedicated
to the City.
1.5 Procedures.
(1) When land is to be dedicated to satisfy the park dedication requirement, separate lots or
outlots shall be indicated on the plat drawings. Such lots or outlots shall be deeded to the city
prior to issuance of any building permits within the plat.
(2) When a cash fee is to be paid in lieu of land dedication, the fee shall be paid prior to the city’s
release of the signed final plat for recording.
(3) For plats that include outlots for future development or are developed in phases, the subdivider
may pay the city either, 1) the required park dedication for the entire subdivision, including
the outlots or future phases, or 2) the required park dedication excluding such outlots or future
phases. The park dedication requirement shall be satisfied when such outlots are replatted or
final plats are approved for future phases, as provided in the development agreement.
(4) Cash in lieu of land contributions shall be deposited in the City’s Parks Capital Improvements
Fund and shall be used only for acquisition and development or improvement of parks,
recreational facilities, playgrounds, trails, wetlands, or open space.
1.6 Private Open Space. Open space privately owned and maintained shall not be given credit for
parkland dedication. Where private open space for park, playground, trail, open space or other
recreation purposes is provided in a proposed subdivision, and such space is to be privately owned
and maintained by the future residents of the subdivision, the standards for open space conservation
subdivisions as provided in Chapter 2, Section 6.6 of the Development Code shall be met.
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