08-06-2008 - Laserfiche WebLink

Home Browse Search

Select Senior Living Staff Report August 6, 2008 Page 3 Depreciation The question of depreciation is a difficult one to answer with any quantifiable certainty. Most studies that examine property value impacts of development generally find little correlation between a well designed and constructed project and subsequent property values. While property values may not depreciate as a result of the development, one can argue that quality of life for the existing residents that would be adjacent to the project could be negatively impacted. From the perspective of tax base and market values, the rezoning would promote a substantial increase in market value at the site, increasing from the present approximate valuation of $321,000 to an estimated $12,000,000. Demonstrated Need for Such a Use The applicant desires to rezone the property to allow for senior housing. This type of housing is under-represented in the City’s housing demographic, and is becoming in high demand state-wide. The primary housing option now in the City is single family detached with higher-density rental housing and manufactured homes second and third respectively. There are currently three senior housing buildings in Mounds View, but none offer assisted living or memory care units. The requested rezoning to R-4, high density residential, would not be out of character for the County Road 10 corridor and would not be inconsistent with the Comprehensive Plan. The city has anticipated a mix of housing and commercial / office development in this area. The proposed development that would be permitted via the requested rezoning would increase the market value of the subject area from $321,000 to over $12,000,000. While enhanced market value is desirable, the Commission needs to determine if the potential density allowed by the proposed change would be too intensive for the subject area. It is the belief of the applicant that this type of housing is in demand and that it would be a positive addition to the City’s housing stock. MAJOR SUBDIVISON DISCUSSION (Preliminary Plat Review): Select Senior Living has submitted an application for a major subdivision of three parcels on the northwest corner of County Highway 10 and Groveland Road. The proposed 2.38 acre subdivision would replat the three lots into one parcel. Comprehensive Plan: The Comprehensive Plan Future Land Use Map designates the block on the north side of County Road 10, between Spring Lake Road and Groveland Road as Mixed Use Planned Unit Development, intending for a combination of housing and commercial uses. Park Dedication Requirements: The Subdivision Code indicates that any subdivision of land is subject to a park dedication fee. The dedication imposed is intended to mitigate public costs to the parks system associated with land development. The fee shall be reasonable and based on the extent of the development. Due to the increased intensity of the new development by adding 96 new residential units (although the actual increase in park usage by these residents would more than likely be minimal), the recommended fee amount would be equal to 10% of the market value of the land. To establish the market value, staff uses Ramsey County determined land values as the basis for dedication computation.