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CAMPBELL KNUTSON Professional Association Attorneys at Law Thomas J. Campbell Roger N. Knutson Thomas M. Scott Elliott B. Knetsch Joel J. Jamnik Andrea McDowell Poehler Soren M. Mattick John F. Kelly Henry A. Schaeffer, III Alina Schwartz Amy Schutt 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, MN 55121 (651)452-5000 Direct Dial: (651) 234-6219 Cellular: (651) 470-0756 Fax: (651) 452-5550 E-mail: jjamnik@ck-law.com October 10, 2014 To: Arden Hills City Council and City Administrator From: Joel Jamnik Subject: Park Land Dedication and Fees At recent Council meetings, an issue was raised regarding park land dedication and park fees for the TCAAP area. Development brings new residents and employees to a city which impacts existing public infrastructure, or requires additional infrastructure, such as streets, utilities, parks and drainage systems. Minnesota State law (§ 462.358) authorizes cities to require as part of subdivision approval that “a reasonable portion of the buildable land, as defined by municipal ordinance” be dedicated to the public for these purposes, including parks, recreational facilities, playgrounds, trails, wetlands, or open space. The requirements must be adopted by ordinance following notice and hearing. The city may choose to accept a cash fee as set by ordinance for some or all of the new lots created in the subdivision, based on the average fair market value of the unplatted land no later than at the time of final approval. The fair market value determination was revised by the 2013 legislature to be an annual city determination based on tax valuation or other relevant data, such as appraisal. The appraisal can take into account the planned extension or provision of city sewer and water extensions and other services. In establishing the portion to be dedicated or preserved or the cash fee, the regulations shall give due considerations to the open space, recreational or common areas and facilities open to the public that the applicant proposes to reserve for the subdivision Cash payments received must be used only for the acquisition and development or improvement of parks, recreational facilities, playgrounds, trails, wetlands, or open space based on the approved park systems plan. Cash payments must not be used for ongoing operation or maintenance of parks, recreational facilities, playgrounds, trails, wetlands, or open space. There must be an essential nexus between the fees or dedication imposed and the municipal purpose sought to be achieved by the fee or dedication. The fee or dedication must bear a rough proportionality to the need created by the proposed subdivision or development. Ownership of the land by the County does not hinder the City’s authority to require dedication or payment as a condition of subdivision approval. The current expected dedication of less than 20 acres from the 427 acre parcel is well within safe limits from previous cases and other city requirements given and anticipated development densities.