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The Comprehensive Plan includes three large -acre community parks that have yet to be <br />developed/improved: Irish Avenue Park, Clearwater Creek Preserve and the Bernin <br />property. An additional community park is identified in the northwest corner of Hugo <br />where land would need to be acquired in addition to development of a park. Park <br />dedication fees collected may also be used to purchase land for and construct community <br />parks. <br />In summary, to serve the projected 2040 population, 12-36 neighborhood parks and 4 <br />community parks are guided to be constructed. Arcand Park can be used as an example <br />for a neighborhood park with a development cost of $800,000 and Lions Park for a <br />community park with a construction cost of $8 M. This could be used to estimate that <br />future park development, not including purchasing land, would cost $41.6 M to $60.8 M. <br />At the current park dedication rate, $30 M to $76.5 M would be collected in park <br />dedication to meet that need. <br />6. PARK DEDICATION HISTORY: <br />City Council minutes from 1985 through 1987 indicate that the park dedication fee was <br />$100 per unit at that time. In 1988, the park land dedication fee was $175 per single <br />family residential lot and $75 per dwelling unit over 2 (multi -family). In 1994, the fee <br />was increased to $500 per single family and $225 per multi -family unit. In 2002, $1,700 <br />was charged per residential unit and $1,800 per acre of commercial and industrial. The <br />required land dedication went from 7% to 10% in 2003. In 2005, significant changes <br />were made to the policy with the help of the Park Dedication Fund Subcommittee and the <br />fee was set at $2,400 per residential unit and per acre of commercial. <br />In 2010, changes were made to the Park Dedication Policy, but not the fee. The policy <br />was changed to include a sliding scale of land to be dedicated based on density of a <br />development. This allows the overall dedication to be in balance with the increased need <br />for parks created by the additional residents. The requirement for commercial and <br />industrial dedication was removed. Staff did not find approvals where commercial and <br />industrial developments were charged park dedication while that requirement was in <br />effect between 2002 and 2010. An appeal process was also added to the policy, in <br />keeping with state statutes. <br />7. PARK DEDICATION POLICY REVIEW: <br />After their review in September 2021, the Parks Commission did not recommend changes <br />to the Park Dedication Ordinance and agreed that it continues to serve the City of Hugo <br />well and is in keeping with Minnesota Statute 462.358: <br />• Funds collected are used only for purchasing park land or construction of new <br />park amenities through the use of the Special Park Fund. These funds are not <br />used for maintenance or operation. <br />-4- <br />Park Dedication Fee <br />November 15, 2021 <br />