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� ` � � r � April 11, 2005 Item Description: Update re Park Dedication Fees for SuperTarge# L BACKGROi1ND The City Attorney wrote a legal opinion interpreting state law and the City Code respecting park dedication fees. (See attached legal opinion.) The opinion describes certain factors that weigh in any decision about applying park dedication requirements to the redevelopment of an existing business on an existing site. This legal opinion concludes by urging an individual- ized assessment cf each situation in light cf the new impacts it creates on our Park system. I�. ANALYSIS In light of the City Attorney's legal opinion, staff took into consideration the following factors as Target replaces a smaller store with a bigger store: • The anticipated increase in Target employees, customers and sales transactions. � The increase in building square footage. • The increase in the size of the overall development site. • The fact that the e�sting Target was grandfathered because it started operating before Park Dedication Fees were required of anyone. • The fact that throughout its e�stence Target has been paying property taxes to Roseville to support City services. • The likelihood that new Target customers and new Target employees would create a greater demand on the park system in Roseville. Based on this analysis, City Manager Neal Beets and Parks & Recreation Director Lonnie Brokke met with Target representatives and discussed a park dedication fee that was 20%of the fee that would apply if this were a new business on a new site in Roseville. Under the City Code, the fee for a new Target on a new site in Roseville would be $300,000; 20%cf that sum is $60,000. I�I. UPDATE Target has informed us that they will pay the City $60,000 in Park Dedication fees. As provided under the City Code, this money will be deposited in the Parks and Recreation Dedication Fund. Under the Code, this money can only be used for capital improvements to the Parks system; it cannot be used for operating expenses. --��1 � � � f '� � f r L�I_ .