City Council Meeting Date: March 10, 2020
To: Mayor and City Council
City Administrator
From: David E. Bennett, City Engineer
Title
Consider Resolution Approving a Reduction in Park Dedication for Fifth Street Lofts.
Body
Action Requested:
The Northfield City Council approves Resolution approving a reduction in Park Dedication for Fifth Street Lofts.
Summary Report:
This item was before Council on February 18, 2020 and postpone until March 10. The developer is requesting a 50% reduction in park fees for this project. The developer has indicated the project invests $13,300,000 in the downtown and will increase the property values/property taxes by 580%. In addition, the developer has said independent market research firms often use a rule of thumb that a household has been shown to spend between $15K-$20K in the community resulting in an economic impact of over a $1,000,000.
The Developer believes that Northfield City Code allows for a full waiver of park fees related to this project, however understanding park needs the developer is requesting a 50% reduction.
Rebound Stencil Development has requested Council consider a 50% reduction in park fees for this redevelopment project. Northfield City Code, Chapter 34, Section 5.2.6 establishes certain park dedication requirement for this project. With a project of this type, land dedication is not an option for the developer due to the compact nature of the proposed redevelopment of this site. Therefore, City Code allows for a Cash-in-Lieu requirement for park dedication.
The Cash-in-Lieu amount is dedicated based on the Estimated Market Value as indicated by the County Assessor. For residential development such as this project, the cash-in-lieu requirement is 10% based the projects density. A table summarizing the fees is summarized below:
2019 Market Values
Northfield City Code, Chapter 34, Section 5.2.6 (C) provides for waiver reduction of park land dedication or cash-in-lieu of ...
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