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Home My WebLink About1991-05-20; City Council; 591-10; Park-In-LieuPARKS & RECREATION COMMISSION - AGENDA BILL AB# .EPT. TITLE: PARK-IN-LIEU (INFO) RECOMMENDED ACTION: Accept and file. ITEM EXPLANATION: Recent Council action approved an increase in Park-In-Lieu fees. Refer to the attached City Council agenda bill (Exhibit 1) for detailed information. Essentially the increase in fees are as follows: NW QUADRANT NE QUADRANT SW QUADRANT SE QUADRANT OLD 87,000/AC 87,000/AC 87,000/AC 109,000/AC NEW 175,000/AC 175,000/AC 175,000/AC 175,000/AC EXHIBIT: 1. City Council Agenda Bill on Park-In-Lieu Fees CITY OF CARLSBAD — AGENDA BILL AB« /'./3V MTG 4/23/91 DEPT. FIN TITLE: PARK-IN-LIEU FEES DEPT. HlS^- CITY ^TTY\[JTr^ PITY MGR~^> RECOMMENDED ACTION: Adopt Resolution No.9/*l33 establishing the value of land in each park quadrant for the purpose of computing fees in-lieu of land dedication for park purposes. ITEM EXPLANATION: Chapter 20.44 of the Carlsbad Municipal Code establishes the rules for the § dedication of land for recreation purposes as allowed by the Subdivision Map Act. Under this chapter, the City may require that, "as a condition of approval of a final map or parcel map, the subdivider shall dedicate land, pay a fee in lieu thereof, or both, at the option of the City, for park purposes..." The dedication of land is based on a formula that specifies that "three acres of property for each one thousand persons residing within this City shall be devoted to local parks and recreation purposes." The code also contains the standard number of people per dwelling unit type used to calculate the dedication requirement. As an example, let's assume that a developer is going to build 100 single-family detached houses. The code indicates that the City assumes that 3 people will live in each house, giving a population increase of 300 people. Since we require three acres per 1000 population, we can compute the amount of land this development would be required to dedicate (or pay fees hi lieu of dedication) to the City. i POPULATION 100 units X 3 people per dwelling unit = 300 people DEDICATION REQUIREMENT 3 acres X (300 people/1000 population) = .9 acres The developer must dedicate .9 acres of land or pay a fee to the City equal to the value of .9 acres of land so the City can acquire land elsewhere to meet the park needs. It becomes clear that in cases where the City does not desire the dedication of land, it is necessary to collect the appropriate fee to ensure that sufficient funds will be available to purchase land at a future date. Section 20.44.080 provides the method by which the Council may set the value of land for the purposes of computing these fees. The Code allows the Council to set the value of park land to the current market value for similar land in each quadrant of the City. The market value may be established by the City Manager through a wide variety of methods including an informal survey of real estate professionals or other method that can assure a reasonable accurate value can be established. 32 Page Two of Agenda Bill No. 11, I3H The staff has from time to time attempted to conduct both formal and informal surveys of the real estate market in Carlsbad through appraisers, brokers and agents. In each case, the results have been inadequate for fee setting purposes. However, we now have what we believe to be a valid indicator of the value of vacant land in the southwest quadrant due to the recent acquisition of Alta Mira Park through a condemnation process. The City paid $175,000 per acre for 30 acres of park land near the Alta Mira development in January 1991. Although the Alta Mira Park land is located in the southwest quadrant, staff is asking Council to use this purchase as a benchmark for land values in all quadrants of the City. In past surveys, the value of land in the northeast, southeast and southwest quadrants have been similar while values of land in the northwest quadrant tend to be generally higher. Since there is currently no estimate that will better represent land values in the northwest quadrant, staff is recommending using this value until a more appropriate value can be established. The effect of implementing the recommended fees will be as follows: City of Carlsbad Park-ln-Lieu Fees Recommended Revision Current Park-ln-Lieu Fee Schedule Quadrant NW NE SW SE Value of Land Per Acre 87,000 87,000 87,000 109,000 Fee Per Single Family Dwelling 783 783 783 981 Proposed Park-ln-Lieu Fee Schedule Value of Land Per Acre 175,000 175,000 175.000 175.000 Fee Per Single Family Dwelling 1.575 1,575 1.575 1,575 Change Amount | Percent 792 101.15% 792 101.15% 792 101.15% 594 60.55% The fee paid by a developer building a single family house in Carlsbad will increase from $783 to $1,575 per unit in three of the four quadrants, while the fee will increase from $981 to $1,575 per unit in the northwest quadrant. This represents a fee increase of about 101% for most of Carlsbad, and an increase of about 61% in the northwest quadrant. The Code provides relief for anyone who believes that the fees set by the City are unreasonable or excessive. Anyone who objects to the fee as imposed "...may, at their own expense, obtain an appraisal of the property by a qualified real estate 93 Page Three of Agenda Bill No. appraiser approved by the City, which appraisal may be accepted by the City council if found to be reasonable." The property to be appraised would be park property within the quadrant of the City in question. Park fees paid to the City under this chapter are restricted to use on park land acquisition and development within the quadrant in which they were collected. Interest earned on these funds is retained within the park quadrant and is restricted in the same manner as the original fee revenue. Staff is recommending the adoption of the new fee schedule described above. Staff is also intent on establishing a proper value for park land in all quadrants and will take advantage of any opportunity to return to Council to adjust these fees as new benchmarks become available. FISCAL IMPACT: The Park-In-Lieu fee is an important part of the City's park acquisition program. The City should maintain a fee schedule that is sufficient to meet the demand for park land under Chapter 20.44 of the Municipal Code and the Growth Management program. At this time, these park standards are being met. As the value of property continues to increase, it is necessary to increase the Park-In- Lieu fee schedule to keep pace. Although the park acquisition program is currently meeting the standards, the City would fall short in the future without this type of action on a regular basis. Park fees have not been adjusted for several years due to a considerable amount of uncertainty related to rinding a fair and equitable method of valuing park property. The City has had ordinances requiring appraisals of property, surveys and informal valuations all of which have some weaknesses. The real estate community is hesitant to go public with estimates of the value of vacant properly, whether in connection with a formal appraisal or an informal survey. Although this delay in setting fees has had some effect on the Park fund balances, this effect is mitigated by the reduced rate of development brought on by the Growth Management Program. In addition, the largest amount of development has taken place in areas where credits exist for prior dedication of park land. In these cases, no fee is payable because the City had previously accepted park property. Park fees will yield approximately $5.2 million between now and buildout under the existing fee schedule, and about $10 million using the recommended fees. EXHIBITS: 1. Resolution No 9/- 133 establishing the value of land in each park quadrant for the purpose of computing fees in-lieu of land dedication for park purposes. 94 1 RESOLUTION NO. 91-133 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, ESTABLISHING THE VALUE OF 3 PARKLAND IN EACH QUADRANT OF THE CITY FOR USE IN CALCULATION OF PARK-IN-LIEU FEES4 5 WHEREAS, Section 20.44.080 of the Carlsbad Municipal Code establishes 6 the procedure for determining the value of park property used in computing park- 7 in-lieu fees, and8 a . WHEREAS, the City Council may from time to time revise said property 10 values through the procedures described in the above section of the Municipal 11 Code, and 12 WHEREAS, the City has determined the values of property within the four 13 quadrants of the City as required in Section 20.44.080 of the Municipal Code. 14 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of 15 , g Carlsbad, California, as follows: 17 1. That the above recitations are true and correct. 18 2. The property values for the purpose of computing park fees for park quadrants shall be as shown below: 20 Park Quadrant Quadrant Amount 21 1 Northwest Quadrant $175,000 22 2 Northeast Quadrant 175,000 3 Southwest Quadrant 175,000 4 Southeast Quadrant 175,000 24 3. The fees paid by residential development shall be as shown in Exhibit 25 . A attached hereto.26 27 /// 28 /// EXHIBIT "A" CITY OF CARLSBAD PARK-IN-LIEU FEES BY TYPE OF DWELLING UNIT Park-in-Iieu Type of Dwelling Quadrant, Fees Single Family detached and Duplex 1 $1,575 2 1,575 3 1,575 4 1,575 Attached Single Family (4 units or less attached) 1 $1,313 2 1,313 3 1,313 4 1,313 Attached Multiple Family (more than 4 units) 1 1,050 2 1,050 3 1,050 4 1,050 Mobile Homes 1 919 2 919 3 919 4 919 Quadrant 1 = Northwest Quadrant 2 = Northeast Quadrant 3 = Southwest Quadrant 4 = Southeast 96 4. Revised park fees shall be effective 60 days after adoption of this 2 resolution. 3 4 PASSED, APPROVED, AND ADOPTED at a regular meeting of the City 5 Council of the City of Carlsbad, California, held on the 23rd day of April 6 _, 1991, by the following vote, to wit: 7 AYES: Council Members Lewis, Kulchin, Larson & Nygaard 8 9 NOES: None 10 ABSENT: Council Member Stanton 11 JLAUDE ArLEWIS, Mayor 13 ATTEST: ALETHA L. RAufENKRANz7city Cleric ^ 15 16 (SEAL) 17 18 19 20 21 22 23 24 25 26 27 28