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for the Development Agreement. As part of the Development Agreement review, the Developer has met with Staff to discuss the proposed final location and specifications of the trail. In an April 22, 2025 narrative letter to the City Council, Attachment A, the Developer proposes to make a financial contribution toward the cost of the trail in the amount of $90,000.00 in place of bearing the total expense of the 1,373-foot trail as referenced in Condition 28. The Developer also proposed that a portion of the Park Development and Park Dedication fees to be paid as part of the development project, totaling $1,223,500, be allocated toward the additional costs of the trail. The narrative notes that the trail could be constructed by Trident's contractor or by the City. Evaluation of Request As part of the City Council's January 13, 2025 approval, the Developer is required to pay residential dedication and park development fees as established in the City Code Subdivision Ordinance. The developer fee calculations are included in Resolution 2025-007, Attachment B, and memorialized in the Development Agreement. In the provided narrative, the Developer references these fees as potential sources to cover the cost of the trail extension in addition to the Developer's $90,000.00 proposed contribution. Condition 26 of the Resolution notes that "Residential dedication shall be a cash contribution in lieu of land and calculated based upon the fair market value of Lot 1, Block 1, as determined by an appraisal submitted to the City by the Applicant and paid for by the Applicant. Said appraisal must be made by an appraiser who is an approved member of the SREA or MAI, or equivalent real estate appraisal societies." As part of the Development Agreement drafting process, the Developer provided an appraisal for the fair market value of Lot 1, Block 1. The appraised fair market value for the Subject Property was $2,250,000.00. Based on the appraised value, the fair market value of 20% of the land that would otherwise be dedicated to the City is $450,000 and would be collected prior to the issuance of a building permit. Condition 27 states "Park Development shall be a cash contribution in lieu of land and calculated using the current per unit fee of $6,500, for a total park development fee of $773,500.00 based upon 119 units." The Park Development cash contribution would be collected prior to the issuance of a building permit. As referenced in the April 22 narrative, the Developer would pay a total of $1,223,500.00 in residential dedication and park development fees as part of the development. The Public Works Director/City Engineer has reviewed the narrative letter and the Developer's proposal and has provided the following response for the City Council's review: In response to Trident's proposal of $90,000 for 1,373-feet of bituminous trail which equates to $65.54 per linear foot. The estimated value does not account for actual site conditions, is not a trail that is constructed to be grade -separated and does not meet Municipal State Aid design standards (Snelling Avenue is a MSA street). Realistically, for new trail construction within a previously developed location you should expect existing infrastructure conflicts and include estimates for relocating, adjusting structures and grading. Page 2 of 4