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ARDEN HILLS CITY COUNCIL WORK SESSION—NOVEMBER 16, 2015 3 Community Development Director Hutmacher indicated that Park A is a small park on the west side of the spine road between the commercial and office area, and Park B is located by the water treatment facility. It was noted the Town NH park is along the pedestrian corridor and the two parks in the Hill area are combined in this table. Mayor Grant asked how the cost per acre was calculated. Stacie Kvilvang noted that while the improvement and financing costs listed in the table are approximately $8 million, her initial estimate was closer to $9 million and that the City had settled on $7 million. She said she is concerned $7 million may be too little if costs come in higher. The table includes $7 million in park development costs and approximately $1.2 million in financing costs. Stacie Kvilvang stated that to determine the per acre cost, she took the total land value of approximately$66 million and broke it out based on residential, office, retail, and commercial. She used the initial model from Ramsey County as far as what they were anticipating for land sale proceeds and the fair market value. The land dedication percentage would be based on an actual sale price. Stacie Kvilvang discussed the three fee structure scenarios: Land Dedicated r Land Dedicated& Scenariot .the Land r Park Develop Developmen Park Development ' Both Fees Imposed Fee Paid Fee Paid Park Dedication Fees $ 8,206,135 $ 8,272,272 $ 12,254,732 Land Acquisition $ 0 $ (3,413,709) Park Improvements $ (8,206,135) $ (8,206,135) $ (8,206,135) Over/(Under) $ - $ 66,136 $ 634,887 Per Unit Residential Fee $ 4,293 $ 2,900 $ 2,900 In Scenario 1, commercial and residential pay a park development fee but there is no land dedication fee. To reach the total needed for improvement and financing costs of$8.2 million, the residential park development fee would have to be approximately $4,300 per unit. This scenario does not work well as this formula nets 32 dedicated acres while the City has planned for 24 dedicated acres. In addition, it puts the burden on residential units to pay significantly more. Because the ordinance gives the City discretion on whether to accept cash or land, the City is able to avoid Scenario 1. In Scenario 2, the County or developer dedicates residential land and commercial pays a total land dedication fee of 10% of the land value. In this example, the residential park development fee is reduced to $2,900. She said this figure is common in the metro area and meets the City's goals. In Scenario 3, the City receives no dedicated land from the County or developer and so the City must purchase the land. The City would charge a land dedication fee for both residential and commercial and there also would be a park improvement fee. Mayor Grant asked what figures were used.