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12-01-08 PCITEM 3.1 NORTHWEST ASSOCIATED CONSULTANTS, INC. 4800 Olson Memorial Highway, Suite 202, Golden Valley, MN 55422 Telephone: 763.231.2555 Facsimile: 763.231.2561 planners@?nacplanning.com PLANNING REPORT TO: FROM: RE: REPORT DATE NAC FILE: BACKGROUND Otsego Planning Commission Daniel Licht, AICP Otsego — Van Vleet; Preliminary/Final Plat 24 November 2008 ACTION DATE: 15 December 2008 176.02 — 08.16 Walter and Cynthia Van Vleet own a lot and outlot at the southwest corner of Oday Avenue and 96th Street legally described as Lot 6, Block 2 Hylo Acres and Outlot A Hylo Acres 3rd Addition respectively. The platted lot is developed with a single family house and the outlot is undeveloped. The property owners are proposing to combine the two parcels into a single lot to make the property more usable. Because the request involves combination of a platted lot and an outlot, it is necessary to process a preliminary and final plat. Section 21-3-3.A of the Subdivision Ordinance allows for concurrent processing of preliminary and final plat applications for simple subdivisions. The property owners are also requesting vacation of existing drainage and utility easement along the common lot line between the platted lot and outlot. A public hearing to consider the request is noticed to be held at the Planning Commission meeting on 1 December 2008 at 7:00 PM. Exhibits: A. Site location B. Aerial photo C. Hylo Acres (Lot 6, Block 2) D. Hylo Acres 3rd Addition Final Plat (Outlot A) ANALYSIS Comprehensive Plan. The Comprehensive Plan guides the two lots for low density residential uses as part of the Long Range Urban Service Area. The combination of the platted lot and outlot to make a larger residential parcel (developed with the applicant's existing home) is consistent with the Future Land Use Plan. Zoning. The two parcels are zoned R-2, Residential Long Range Urban Service District (Large Lot). The existing single family dwelling is an allowed use within the R-2 District. Lot Requirements. The table below summarizes the required minimum lot area and lot width required in the R-2 District. Both of the existing parcels have less than the required minimum lot area and are non -conforming. The combined lot exceeds the minimum lot requirements of the R-2 District. Setbacks. No information was submitted regarding the location of existing structures on the property. The combination of the two parcels effects the designation of yards on the subject site. Based on aerial photo information, there appear to be no setback encroachments as a result of the preliminary/final plat. Property Line Min. Lot Area Min. Lot Width Min. Lot Depth Required 2.50ac. 150ft. 150ft. Lot 6, Block 2 1.16ac. 185ft. 265ft. Outlot A 1.55ac. 354ft. 199ft. Combined Lot 2.56ac. 185ft. 565ft. Setbacks. No information was submitted regarding the location of existing structures on the property. The combination of the two parcels effects the designation of yards on the subject site. Based on aerial photo information, there appear to be no setback encroachments as a result of the preliminary/final plat. Property Line Yard Setback North Front 35ft. East Front 35ft. South Rear 50ft. West Side 1 Oft. Easements. Section 21-7-15 of the Subdivision Ordinance requires a 10 foot easement at the perimeter of platted lots, which may overlay lot lines when there is an easement on both sides. The final plat for Hylo Acres does not show a perimeter easement on the platted lot, whereas there is an easement at the perimeter of Outlot A. The preliminary/final plat to be submitted to combine the two parcels will need to show a five foot drainage and utility easement along the south and west lot lines and 10 feet along the north and east lot lines. As there is an existing drainage and utility easement along the north line of Outlot A, the property owners have requested vacation. With the combination of the two parcels and dedication of easements at the perimeter of the lot, there is no public purpose for maintaining the easement in this location. Right -of -War The two existing parcels abut Oday Avenue and 96th Street. The portion of 96t Street abutting the existing platted lot appears to exist by prescriptive easement versus platted right-of-way. The preliminary/final plat to be submitted to combine the two existing parcels must provide for 33 feet of right-of-way for 96th Street consistent with the right-of-way dedicated for the street with Hylo Acres 3rd Addition. 2 Park and Trail Dedication. The proposed preliminary/final plat does not result in establishment of additional development rights. As such, park and dedication requirements do not apply to the application. Preliminary/Final Plat. The applicant must submit a final plat in the form required by Section 21-6-3 of the Subdivision Ordinance. The final plat is subject to review and approval by City staff prior to being released for recording. RECOMMENDATION The request to combine two parcels into one lot and vacate existing drainage and utility easement conforms to the requirements of the Zoning Ordinance and Subdivision Ordinance. Our office recommends approval of the applications as outlined below subject to any comments from other City staff. POSSIBLE ACTIONS Decision 1 — Preliminary/Final Plat A. Motion to approve a preliminary/final plat combining Lot 6, Block 1 Hylo Acres and Outlot A Hylo Acres 3`d Addition and vacation of existing drainage and utility easement subject to the following conditions: The applicant shall submit a final plat in the form required by Section 21-6- 3 of the Subdivision Ordinance, subject to review and approval of City staff. 2. The final plat shall provide drainage and utility easements at the perimeter of the lot as required by Section 21-7-15 of the Subdivision Ordinance. 3. The final plat shall provide 33 feet of right-of-way for 96th Street, subject to review and approval of the City Engineer. B. Motion to deny the application based on a finding that the request does not comply with the Zoning Ordinance and/or Subdivision Ordinance. C. Motion to table. C. Mike Robertson, City Administrator Judy Hudson, City Clerk/Zoning Administrator Andy MacArthur, City Attorney Ron Wagner, City Engineer Warren and Cynthia Van Vleet, applicant Ron Black, applicant's attorney SUBJECT SITE CITY OF OTSEGO ON THE GREAT RIVER ROAD a BASE MAP DATA PROVIDED BY Hakanson FAndersonitl .■. AssOC.,InC. PREPARED OCTOBER 2001 NOTE: THIS MAP IS FOR PLANNING PURPOSES ONLY AND SHOULD NOT BE USED FOR EXACT MEASUREMENT. SCALE; CYI M I! N TH Wright County, MN beaconTM Date Created: 11/23/2008 Map Scale: 1 in = 183 ft Last Data Upload: 11/22/2008 4:10:55 AM ., rua9�.w:afaxezic.kztuep'.: tfid"C0. my.a.mav�l7as�n, .. -.i .SRbC^A Fia"h..':.tli'% ... ;:r�F:,�i .+�1 'td,•,';.. 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ITEM 3-2 NORTHWEST ASSOCIATED CONSULTANTS, INC. 4800 Olson Memorial Highway, Suite 202, Golden Valley, MN 55422 Telephone: 763.231.2555 Facsimile: 763.231.2561 planners@nacplanning.com MEMORANDUM TO: Otsego Parks and Recreation Commission Otsego Planning Commission FROM: Daniel Licht, AICP DATE: 28 October 2008 RE: Otsego — Subdivision Ordinance; Park and Trail Dedication NAC FILE: 176.08-08. BACKGROUND The City Council has directed City staff to annually review the park and trail dedication requirements in Section 21-7-18 of the Subdivision Ordinance, which must be established by 1 January of each year. The purpose of this review is to ensure and demonstrate that there is a nexus between the cash fee in lieu of land accepted by the City for park and trait acquisition and development purposes is representative of the costs incurred as required by Minnesota Statutes 462.358, Subd. 2c and case law from Dolan v. Tigard. The City completed a detailed study in 2003 of park and trail development costs including land acquisition, land preparation and construction, the relationship between housing density and park land needs, community facility needs and fees for commercial and industrial development. Since that initial 2003 study, the City has annually adjusted the park and trail dedication fee paid in lieu of land dedication to account for changes in land value or construction costs. Exhibits: A. Section 21-7-18 B. Draft ordinance amendment ANALYSIS Current Fee. The City's current residential park and trail fee in lieu of land for residential development was adopted to be effective 1 January 2008. The fee is based on the following cumulative factors stated on a per residential unit basis: Land acquisition: $1,600.00 Neighborhood park development: $ 801.00 Community center development: $ 822.00 Future trails construction: $ 57.00 TOTAL $3,280.00 For 2007, park and trail dedication fees in lieu of land for commercial and industrial subdivisions were established at $7,000.00 and $3,500.00 per gross acre, respectively, based on 2003 land values. Land Cost. The land values component of the City's current park and trail fee is based on an estimated cost of approximately $60,000 per gross acre dating back to 2004. With the down turn in the residential development market, land values are expected to have fallen. However, no sales of developable properties guided for residential land use have been recorded within the sanitary sewer service district. Wells Fargo has foreclosed upon the developer owned lots and outlots within the Martin Farms development and is offering the parcel planned for single family lots at $28,300/acre. The Wright County Assessors office indicates that they're recommended land value for developable residential property for 2009 will be $32,000/acre. Based on this information, an adjustment to the land value component of the City's park and trail fee is required: Estimated Required Per Acre Single Family Per Unit Cash Raw Land 10% Land Cash Density Dedication in Value Per Dedication Contribution Lieu of Land Acre $32,000 x 10% _ $3,200.00 / 2.5 $1,280 Commercial and industrial land values along the TH 101 corridor have increased greatly based on in place and new residential homes, new development creating accumulative market attraction and the just completed improvements to TH 101. The current cash fee in lieu of land for commercial and industrial is reflective of land values equal to $70,000 an acre for commercial property and $35,000 an acre for industrial property. Recent commercial land sales and appraisals done as part of the TH 101 and CSAH 42 improvement projects suggests minimum commercial property values of approximately $350,000 per acre for commercial land and approximately $100,000 per acre for industrial land. The City could justify an increase in the commercial and industrial cash fee in lieu of land for park and trail dedication as the current fees are approximately two percent of the land value of commercial property and four percent of industrial land values. However, from an ecori.-)mic development standpoint, City staff would 2 recommend that the commercial and industrial cash fees in lieu of land for park and trail dedication not be changed. Construction Cost. The City undertook construction of three new neighborhood parks in 2006 and a conceptual design for a park within Wildflower Meadows based on facilities and site designs intended to define a typical neighborhood park. The adjusted average cost for these parks in 2008 was $643,953.00 based on information published by the Engineering News -Record Construction Cost Index. The change in the Engineering News -Record Construction Cost Index between the October 2007 and October 2008 is a 7.2 percent increase in construction costs for a current estimated development cost of 690,318.00. Each neighborhood park guided by the Comprehensive Plan is anticipated to serve an approximate one square mile area. Assuming an average density of 2.5 dwelling units per acre within residential areas of the City based on existing development and established development regulations, there are approximately 804 households per square mile. As such, the cost per dwelling unit for neighborhood park construction based on the current typical park facility design and construction costs is $859.00. Community Facilities. Research was also done in the 2003 analysis regarding the cost for construction of a community center similar to that built by Monticello, Maple Grove, Becker and Elk River. The assumed cost of a similar facility for Otsego was $14,800,000 based on that data. Under park and trail dedication requirements, the City has included that portion of the cost for a community center to be borne by new residents moving into the community. The 2000 Census identifies Otsego as having 2,062 households. The 2004 Comprehensive Plan projects the City to have a household count of 21,471 by 2040 based on a growth rate of 400 to 600 new households per year. The initial community center portion of the park dedication cash fee in lieu of land was therefore set in 2003 at $690.00 reflecting the anticipated cost of a community center and 2040 household estimate. The adjusted 2008 fee was set at $822.00. It is recommended that this element of the park and trail dedication fee be changed to a broader community facilities category. Funds collected for community facilities may be used to develop a future community center building as well as acquire land and develop the two additional community parks shown on the 2004 Comprehensive Plan Future Parks and Trails Plan map and/or continue development of remaining facilities shown on the Prairie Park master plan. The costs for acquisition and development of the future community facilities are comparable to that of the initial community center estimates. As such, we recommend that the community facilities portion of the park and trail dedication fee be adjusted by the ENR Construction Cost Index factor of 7.2 percent to $880.00 Trails. The 2008 cash fee in lieu of land included a trail construction element to account for full buildout of the remaining trail system. The City constructed 1,980 feet of new trail along 75th Street between Ohland Avenue and Odean Avenue in 2008, so the remaining trails on the 2004 Comprehensive Plan Future Parks and Trails Plan map is 73,990 feet. The 2008 cost estimate for the construction of trails as part of street projects or stand-alone construction is $17.41 a linear foot. To determine a cost factor for future trail construction the following equation is used: 72,01 Oft. x $17.41 /ft. / 21,079 households = $59.48 / dwelling unit RECOMMENDATION Our office recommends that the park and trail cash fee in lieu of land for residential subdivisions paid on a per dwelling unit basis as set forth by Section 21-7-18.1 of the Subdivision Ordinance be established at $3,280.00 for 2008 (rounded to the nearest $10.00) as shown below. This fee is $200.00 lower than the fee for 2007 based on lower estimated land values, which offset 7.2 percent inflationary increases in development costs the City may expect to incur. Land acquisition: $1,280.00 Neighborhood park development: $ 860.00 Community Facilities: $ 880.00 Future trails construction: $ 60.00 TOTAL $3,080.00 The Parks and Recreation Commission, Planning Commission and City Council may also consider increases to the commercial and industrial cash fees in lieu of land based on rising land values. An increase to these fees must also be balanced against the effect to the City's economic development goals. POSSIBLE ACTIONS A. Motion to recommend approval of an ordinance amending the Subdivision Ordinance establishing park and trail dedication fees for 2009. B. Motion to recommend denial of the proposed amendment. C. Motion to table. C. Mike Robertson Judy Hudson Brad Belair Andy MacArthur Ron Wagner 4 21-7-18: PUBLIC SITES AND OPEN SPACES (PARK LAND DEDICATION): A. As a prerequisite to final plat approval, and at the sole determination by the City, applicants and/or developers shall dedicate a reasonable portion of the buildable land within a proposed subdivision for parks, playgrounds, public open spaces or trails and/or shall make a cash contribution to the City's Park and Multi -Purpose Trail Funds roughly related to the anticipated effect of the plat on the park and trail system. The amounts listed in this section are the City's best estimate of the dedication or cash contribution needed to offset the effect on those systems. The requirement may also be met with a combination of land and cash if approved by the City Council. B. The land dedicated for parks and trails shall be in addition to property dedicated for streets, alleys, easements, or other public ways. Land to be dedicated shall be reasonably suitable for its intended use as determined by the City and shall be at a location convenient to the public to be served._ Factors used in evaluating the adequacy of proposed park and recreation areas shall include size, shape, topography, geology, hydrology, tree cover, access and location. C. The applicant shall confer with City Staff and the Parks and Recreation Committee at the time the preliminary plat is under consideration, to secure a recommendation as to the location of any property that should be dedicated to the public, such as parks, playgrounds or other public property. The preliminary plat shall show the location and dimensions of all areas to be dedicated in this manner. Such -contribution requirement recommendation (s) will be sent to the Planning Commission for review and comment and subsequently to the City Council for their approval. D. When a proposed park, playground, recreational area, or other public ground has been indicated in the City's official map or Comprehensive Plan and is located in whole or in part within a proposed plat, it shall be dedicated to the appropriate governmental unit. If the applicant elects not to dedicate an area in excess of the land required hereunder for a proposed public site that the City feels is in the public interest to acquire, the City may consider acquiring the excess land through purchase or condemnation. E. Land area conveyed or dedicated to the City shall not be used in calculating density requirements of the City Zoning Ordinance and shall be in addition to and not in lieu of open space requirements for planned unit developments. F. Where private open space for park and recreation purposes is provided in a proposed subdivision, such areas shall not be used for credit against the requirement of dedication for park and recreation purposes, unless the City Council finds it is in the public interest to do so. G. The City, upon consideration of the particular type of development, may require that a lesser parcel of land should be dedicated due to particular features of the development. In such cases, a cash contribution shall be required above the land dedication to insure that compensation is received for the full amount of the impact on the City's park and trail system. H. Land dedication. In all new residential subdivisions where land dedication is to be required, ten (10) percent of the buildable area subdivided, plus an additional percentage of the buildable area subdivided with a development density less than two and four -tenths (2.40) dwelling units per acre. For new residential subdivisions with a density or portion there of equal to or greater than two and four -tenths (2.40) dwelling units per acre shall be dedicated for public parks, trails, or open space consistent with the following table: Density: Land Units Per Buildable Acre DedicationPercentage 0.00 > 2.39 du/acre 10% 2AD > 4.79 du/acre 13% 4.80 > 7.99 du/acre 17% 8.00 du/acre and over 20% 2. In all commercial or industrial subdivisions where land dedication is required, ten (10) percent of the buildable area of the land being subdivided shall be dedicated for public parks, trails, or open space. When a subdivision is proposed, the Developer shall make a dedication of land for public park use, or the City may require a fee in lieu of such land dedication as follows, which are the City's best estimate of the effect of the subdivision on the City's park system: 1. Residential Development 2. Commercial Development $3,280.00 per dwelling unit. $7,000.00 per gross acre. 3. Industrial Development: $3,500.00 per gross acre. J. All land proposed for trail dedication shall be subject to the recommendations of the Parks and Recreation Commission and the approval of the City Council. Such lands must also correspond and conform with the City's Comprehensive Parks and Trails plan. K. The City may elect at its sole discretion to receive land, a cash fee in lieu of land, or a combination of cash, land, and development of the land for park use. The potential cash donation generated by the dedicated land and/or the value of the development of land shall be calculated. That amount shall be subtracted from the cash contribution required by the Subsection I above. Planned unit developments with mixed land uses shall make cash and/or land contributions in accordance with this Section based upon the percentage of land devoted to the various uses. M. Park cash contributions are to be calculated and established at the time of final plat approval. The Council may require the payment at the time of final plat approval or at a later time under terms agreed upon in the development agreement. Delayed payment may include interest at a rate set by the City. N. Cash contributions for parks and trails shall be deposited in either the City's Park Fund or multi-purpose trail fund and shall only be used for park acquisition or development, and trail acquisition or development as determined by the City. Additionally, said funds may be utilized anywhere within the City park and trail systems. O. Wetlands, ponding areas, and drainageways accepted by the City may not be considered in the park land and/or cash contribution to the City. P. Property being replatted with the same number of lots and same number of dwelling units shall be exempt from all park land dedication requirements. If the number of lots or the number of dwelling units is increased, or if land outside the previously recorded plat is added, then the park land dedication and/or park cash contributions shall be based on the additional lots and on the additional land being added to the plat. If the additional land does not create additional lots, then each one-third (1/3) acre added shall be considered a new lot for purposes of calculating the dedication requirements. Q. When land is dedicated and deeded to the City for park purposes, it shall be the responsibility of the City to maintain such dedicated property. R. Land dedication to the City shall be in the form of lots or outlots with approved lot and block numbers. S. If the applicant or developer does not believe that the estimates contained in this section fairly and accurately represent the effect of the subdivision on the park or trail system of the City, the applicant or developer may request that the City prepare in depth study of the effect of the subdivision on the park and trail system and an estimate of that effect in money and/or land. All costs of such study shall be borne by the developer or applicant. If the developer or applicant requests the preparation of such a study, the request must be made at the time the development application is submitted. No application for development that is submitted shall be deemed complete until the requested study has been completed and a determination is made as to the appropriate amount of land or money necessary to offset the effects of the subdivision. 11 ORDINANCE NO.: 2008 - CITY OF OTSEGO COUNTY OF WRIGHT, MINNESOTA AN ORDINANCE AMENDING THE SUBDIVISION ORDINANCE OF THE CITY OF OTSEGO PERTAINING TO PARK AND TRAIL DEDICATION. THE CITY COUNCIL OF THE CITY OF OTSEGO DOES HEREBY ORDAIN: Section 1. Section 21-7-18.1.1 of the Otsego Subdivision Ordinance is hereby amended to read as follows: 1. Residential Development: $3,080.00 per dwelling unit. Section 2. This Ordinance shall become effective 1 January 2009 upon its passage and publication according to law. MOTION BY: SECOND BY: ALL IN FAVOR: THOSE OPPOSED: ADOPTED by the Otsego City Council this 8th day of December, 2008. CITY OF OTSEGO BY: Jessica Stockamp, Mayor ATTEST: Judy Hudson, Zoning Administrator/City Clerk