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Council is aware that Minnesota Statutes requires that an increase in park dedication fees <br />must comply with the "Nexus Test." 'The requirement of the Statute establishes that a <br />municipality most reserve and use a reasonable portion of the fee for a related public <br />purpose such as parks, recreational facilities, streets, roads, sewer or storm water <br />improvements and cannot be excessive beyond the scope of [lie intended improvements. <br />The Statute also prevents cities from redirecting or transferring the funds for other uses <br />and the funds collected through dedicated fees must be used for their intended purpose. <br />Based on St. Anthony's use of current park dedication fees the City is in compliance with <br />the Statute (100% of the monies are going to park and public improvements). However, <br />the current fee structure is much lower than the fair market or average fee charged <br />In addition, staff contacted Jerry Gilligan from Dorsey & Whitney. Iie indicated that <br />given the amount that the City has paid in park improvements, the costs necessary to <br />maintain those parks and our current fee structure the City can easiIy justify an increase <br />in fees. <br />Recommendation: <br />Council amend ordinance Section 1500, Subsection 12 (Park Dedication Fees). A lac <br />schedule is as follows: <br />Single Family <br />Duplex <br />Townhouse Development <br />Mobile Monne <br />Multi Family Apartment/Condo <br />$1,500 Emit <br />$1,800 Unit <br />$2,000 Unit <br />$1,000 Unit <br />$1,500 Unit <br />ConnrnerciaUlndustrial $4,000 per Acre <br />