05/07/2001 Park Board Packet - Laserfiche WebLink

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• 3. Vacant lot sales within the developments of Cedar Creek 3`d Addition, Behm's Century Farm 5th Addition and Highland Meadows West ranged from $40,942 to $45,706 per lot with an average vacant lot sales price of $42,995 dollars. • For the purpose of estimating future land costs to acquire the parkland identified by the Comprehensive Park and Trail Plan, the figure of $28,000 per acre was used. This figure approximates the average sales price of raw land within the MUSA for the City of Lino Lakes. Pursuant to State Statute, the City can collect park dedication based upon the value of land at the time of final plat. It is our opinion that value should include raw land value plus the profit from lots created by final plat approval. The land value at final plat should comprise the value of the lot and profit less improvement costs. Residential developers were contacted to identify lot improvement costs (assuming an 80 foot wide lot), associated with single - family subdivisions. Typical improvement costs for single - family developments consist of utilities, roads, grading, engineering, area connection charges and fees, which approximate 48% of the total vacant lot sales price. The analysis assumes a minimum of 20% profit for the developer. The following table illustrates the valuation difference between raw land value (preliminary plat) and land value at the time of final plat: Table 4 The application of park dedication at the time of final plat, based upon the value of 10% of the project (lots + profit), results in an equitable dedication policy that is superior to the current dedication based on raw land value (at the time of preliminary plat). The existing method treats developers differently based upon whether a cash or land dedication is taken by the City. The current cash dedication policy requires a developer to give up a percentage of the raw land value of the project at the time of preliminary plat. The developer that gives a land dedication is impacted to a greater degree because they give up land value plus future profit. Whereas the developer who pays a cash dedication at the time of preliminary plat looses only raw land cost. This situation treats developers inequitably based upon whether they are required to dedicate and or cash. Using the land value at the time of final plat will result in an equitable treatment of developers in that the same value will be applied regardless of whether cash or land is required. RESIDENTIAL PARK DEDICATION ANALYSIS • Exhibit D "Lino Lakes — Park Trail Facilities Chart" identifies the park sites pursuant to the 1992 Comprehensive Park and Trail Plan. The name and address of each park 8 Lino Lakes Park Dedication Analysis LAND VALUE AT FINAL PLAT RAW LAND VALUE Total Lot Sales Price Development Costs Per Unit Cost/Lot Value at Final Plat $43,320 - 22,100 $21.220 (Lot Cost + Profit) $ 28,000 p /acre Or $14,000 p /lot Park Dedication Requirement (10 %) $2,100 per unit $1,400 per unit The application of park dedication at the time of final plat, based upon the value of 10% of the project (lots + profit), results in an equitable dedication policy that is superior to the current dedication based on raw land value (at the time of preliminary plat). The existing method treats developers differently based upon whether a cash or land dedication is taken by the City. The current cash dedication policy requires a developer to give up a percentage of the raw land value of the project at the time of preliminary plat. The developer that gives a land dedication is impacted to a greater degree because they give up land value plus future profit. Whereas the developer who pays a cash dedication at the time of preliminary plat looses only raw land cost. This situation treats developers inequitably based upon whether they are required to dedicate and or cash. Using the land value at the time of final plat will result in an equitable treatment of developers in that the same value will be applied regardless of whether cash or land is required. RESIDENTIAL PARK DEDICATION ANALYSIS • Exhibit D "Lino Lakes — Park Trail Facilities Chart" identifies the park sites pursuant to the 1992 Comprehensive Park and Trail Plan. The name and address of each park 8 Lino Lakes Park Dedication Analysis