2023-02-08 WS, Closed Exec. & Council Meeting Packet

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transfer that fee to other parties or wait until the time of building permit before collecting the fee. The City ordinance governing this question has changed throughout the years since fees were first collected on the “left” parcel of this property but the law always allowed for collection of the fee at times other than when the property was subdivided. ANALYSIS: The law allows for collection of a park dedication fee by the party who subdivides the property or by others in the chain of ownership. No park dedication fees have been paid for the parcel in question. When the Buyer’s developer asked for a building permit, this park dedication fee appeared on the permit and was paid. Prior to his purchase of the property, the Buyer’s closing company asked the City only to disclose whether there were any pending assessments against the property. The City accurately answered that question in the negative. Had the Buyer or his representative ask the City whether there were any unpaid fees on the property the City would have answered in the affirmative by disclosing the unpaid park dedication fee. Had the Buyer or his representatives properly conducted their pre-sale due diligence, this unpaid park dedication fee would have been apparent to them. This failure of pre-sale due diligence may leave the Buyer with recourse for collection of this fee from the Seller or the Buyer’s closing company. Accordingly, this fee was duly imposed and accurately collected by the City. I do not recommend offering the Buyer a refund. CURRENT CITY ORDINANCE § 153.15 GENERAL. Subdivision design shall comply with the following general design standards: (B)Land dedication. In all subdivisions, ten percent of the gross area subdivided shall be dedicated for public recreation space, with this ten percent being in addition to property dedicated for streets, alleys, easements, or other public ways. No areas may be dedicated for public use until the areas have been approved as being suitable and needed for the public health, safety, convenience and/or general welfare. If the city decides that real property dedication is not needed, or less than 10% of the real property is needed for dedication, the subdivider shall be required to pay a Park Dedication fee as per the schedule in effect at the time of Preliminary Plat approval in lieu of such dedication. The payment of the fee shall be due in conjunction with the recording of the plat. By agreement, the city may allow the subdivider to delay payment of Park Dedication Fees to the time of the building permit issuance on each lot. However, the agreement must hold the subdivider ultimately responsible for the payment of those fees if not paid by the builder. An escrow or other security may be required to secure those funds. For multi- family projects, each unit will be construed to be the equivalent of a “lot”. For group- living situations such as group homes, nursing homes and the like, each bed will be construed to be the equivalent of one-half (½) lot. For redevelopment of parcels which have previously dedicated land or paid a Park Dedication Fee, the existing number of lots or units shall be subtracted from the number of new lots or units in the proposed redevelopment to calculate the fees owed. 2