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improvements. The problem with this method is that park dedication cannot be <br />determined until a building footprint is established via a site plan and building permit <br />after the subdivision is approved. The current procedure runs contrary to State Statutes <br />for park land dedication with subdivision approval. Staff is recommending the proposal <br />to establish a charge per acre of platted commercial /industrial land consistent with State <br />Statutes (which enable Cities to collect park dedication at the time of platting), as <br />opposed to the current square foot charge. The acreage charge can be calculated at <br />the time of subdivision or development, similar to the methodology used to calculate <br />residential park dedication. <br />In order to translate the existing square footage standard to an acreage standard staff <br />has assumed a commercial /industrial building site coverage of 30 %, which is typical for <br />this type of development. The City currently charges $200 per 1,000 square feet of <br />commercial /industrial building area. To translate the square footage standard to an <br />acreage standard, the following formula was used: <br />1 acre (43,560 square feet) x 30% building coverage = 13,068 _ 1,000 (current sq. ft. <br />standard) = 13.068 x $200 (current park dedication charge) = $2,614 (acreage charge) <br />The current square footage charge of $200 dollars per 1,000 square feet of <br />commercial /industrial developments is equal to $2,614 dollars per acre. <br />This acreage charge for commercial /industrial property compares favorably to similar <br />park dedication fees charged by other communities. The following table illustrates the <br />current commercial /industrial park dedication charges applied by various municipalities: <br />City <br />Commercial Fee <br />Industrial Fee <br />Notes <br />Blaine <br />2,864 <br />2,511 <br />Fixed rate per acre <br />Rate increases 3% per year <br />Coon Rapids <br />3,350 <br />3,350 <br />Fixed rate per acre <br />Centerville <br />0 <br />0 <br />No charge for C/I development <br />Hugo <br />1,350 <br />1,350 <br />Fixed rate per acre <br />Lino Lakes <br />2,614 <br />2,614 <br />Fixed rate per acre (proposed) <br />ISSUE 3 — REVISED RECOMMENDATION FOR RESIDENTIAL DEDICATION <br />If the City collects park dedication fees for commercial /industrial subdivisions as <br />identified herein, it is anticipated that $3,398,200 dollars will be generated. (This figure <br />represents the amount of vacant commercial /industrial land within the City less <br />wetlands). Upon full development of the City, the 1,300 net acres of <br />commercial /industrial land will generate of park dedication (based upon the current fee <br />of $2,614 dollars per commercial /industrial acre of land). This dedication serves to <br />reduce the burden on residential property as shown below: <br />Total Park & Trail System Cost <br />$22,965,399 <br />50% of Total System Cost to be paid by existing development <br />$11,482,700 <br />3 of 4 <br />