PC Meeting Date: September 17, 2026
To: Members of the Planning Commission
From: Mathias Hughey, AICP, Interim City Planner
Scott Wapota, Community Development Director
Title
Discussion Related to Park Dedication Fees for Future Text Amendment
Body
Action Requested:
The Planning Commission is asked to discuss and provide feedback on a proposed approach for a text amendment
Summary Report:
Background
In December 2025, staff brought forward a proposed text amendment to introduce a fee to the park dedication provisions in the Land Development Code (LDC). The premise of that proposal was based, in part, on the understanding that Northfield’s park dedication fees were lower than many comparable cities. The recommendation from staff was based on bringing the fees in line with other communities.
The Planning Commission (PC) raised several concerns summarized as:
- Equity and affordability of housing
- Cost of development
- Long-term maintenance of parks
- Ease of administration
Links to the December 2025, and February 2026 PC meetings are included for reference.
Staff are seeking high-level policy direction from the PC, with the goal of bringing forward a proposal that balances competing priorities and tradeoffs associated with new development.
Current Policy
Requires a percentage of land to be dedicated for parks. Where a percentage of land cannot be dedicated, or where land dedication is at odds with the goals of providing parks, a fee-in-lieu is required. The amount of land required decreases as proposed density increases.
Successes of current policy include:
- Land dedication reflects parks plan still consistent with best practices
- Produces adequate land for parks
Shortcomings of current policy include:
- Does not provide funding to develop or install amenities within newly dedicated parks
o Development therefore funded by existing residents
- When fee-in-lieu is used, fees collected are inadequate to develop or install amenities
- Denser development produces smaller parks - apparent mismatch with increased demand
Basis for calculating fees:
Looking at the City Parks, Trail, and Open Space Plan, the Riverfront Enhancement Action Plan, and the 2022 Recreation Capital Investment Plan, there are 7 new neighborhood parks identified (within the priority growth areas), plus $40 million in new needs for the park system, and the build-out of Meadows Park as a neighborhood park as that area develops. The City Parks, Trail, and Open Space Plan also calls for a new neighborhood or mini-neighborhood park for every ¼ to 1/2 -mile service area - generally a walkable park for every new neighborhood.
The cost of developing a new neighborhood park ranges from $500,000 to $1,000,000, not including land acquisition.
Under hypothetical development scenarios of minimum density development, the cost per single-family household for initial development (not including land acquisition) of the associated neighborhood park is approximately $1,200 - $2,000.
When a proportional amount (20%) of the $40 million in new needs for community parks, athletic complexes, indoor recreation, and Riverfront Parks is allocated to future new housing units, there is an additional cost of $1,600 per unit. 20% is based on a low-density development scenario where the priority growth area produces approximately 5,000 new units.
Paths forward:
Staff have identified the following paths forward and would like the PC to provide direction on which is most aligned and any additional considerations or information they would need to be able to make a recommendation.
1. Moving to a flat fee-per-unit with no land dedication required
a. City could potentially give credit towards fee for land dedicated
b. Administratively, a clean option
c. Risk is not getting adequate new park land
d. Fee set based on need to acquire land
2. Adding a fee per unit in addition to land dedication
a. Fee-in-lieu would still be an option
b. Fee-in-lieu may still result in under-funding
3. No change
Additional considerations:
- Adjust the land dedication requirement to be flat (not sliding based on density), with the associated fee calculated on a sliding scale based on density
- Put the fee per unit into the administrative fee table (approved each year by council) to be easily updated based on inflation/construction costs
- Exempting affordable units based on City’s affordable housing policy (ex. deed-restricted units)
- Should the fee reflect the neighborhood plus community-wide improvements or only the neighborhood improvements?
- Staff are not proposing a change to the commercial or industrial park dedication fees at this time - should this be reconsidered?
Direction provided by the PC will be incorporated into the Zoning Code Update Process. That is, any text amendment implemented will be reflected in their policy intent in the updated LDC.
Alternative Options:
The Planning Commission could recommend not changing the fees at this time, or propose an alternative funding source for new park improvements.
Financial Impacts:
If an increase in park dedication fees occurs, there will be more funds available for new improvements to parks, trails, etc. as development occurs.
Tentative Timelines:
October 15, 2026 - formal discussion of text amendment and recommendation to council