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2018-090 Park Dedication and Park Development ProgramsDate: July 20, 2018 Report No. 2018-090 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Update on Parks and Recreation Department’s (PARD) Park Dedication and Park Development programs EXECUTIVE SUMMARY: PARD began the process of assessing its Park Dedication and Park Development programs, known respectively as 915 and 916 funds, in December 2017. The department has been analyzing and mapping available funds for use on current projects. With the assistance of Technology Services and the Finance Department, PARD is also evaluating process improvements for recording and allocating future funds. A major component of the project is the review of the existing ordinance (98-039). In addition to addressing outdated information and incorporating present needs, the ordinance must be updated to comply with legal standards set specifically for park dedication and development type funds. Dr. John Crompton with the Department of Recreation, Park and Tourism Sciences at Texas A&M University has been engaged to lead PARD through the process of revising the current ordinance. Dr. Crompton specializes in marketing and financing in parks, leisure management, tourism, and conservation. He has worked with other municipalities to develop policies tailored for the community and meeting legal standards. Stakeholder and staff meetings will be held in August with an initial draft of the revised ordinance planned by the end of September. Meetings and presentations will continue to be held until a final draft is prepared and approved. Current funding is being used to complete several capital projects and maintenance repairs including the development of Vela Athletic Complex, Industrial Park, Sequoia Park trail, the rebuilding of the American Legion Hall, and updates to Wiggly Field. BACKGROUND: The City of Denton assesses park land dedication and park development fees on all new residential developments. The requirements, criteria, and process for both park land dedication and development fees are outlined in Ordinance 98-039 approved on February 17, 1998. Park dedication is reinforced in Chapter 22, Article III, Section 22-33 to 22-42 of the Code of Ordinance. The purpose of the park dedication and park development programs is to provide recreational areas in the form of neighborhood and community parks as part of the planning and development of property and subdivisions. New residential development generates a need for additional park amenities. Neighborhood and community parks are intended to serve people in the areas near them. The park dedication and park development programs are established with the intent of conveying the cost of a new park to the developer and new homeowners responsible for creating the demand for new park amenities. By ordinance, the programs apply to residential subdivisions with five or more lots, tracts, sites or parcels for the purpose of developing residential dwelling units. The land dedication and use of development fees are restricted to one-half mile to one mile from the related development. Date: July 20, 2018 Report No. 2018-090 Specific formulas are outlined in the ordinance to assess the park dedication requirement and the park development fee. The park dedication requirement is based on a park standard of 2.5 acres per 1,000 population. It prescribes a fixed number for persons per unit in single family and multi-family homes. The number of homes in a new development is used to calculate park land needs. Provisions are included to accept privately owned and maintained park areas, a constructed parks, a fee in lieu of land dedication, and a combination of land and fee. Any proposed private or constructed park must meet specific criteria to qualify for credit. A payment of fee in lieu of park land dedication is calculated on the value of land per acre and the acreage of dedication requirement. The fee is allocated to the acquisition of park land. Park dedication is imposed at the time of preliminary plat approval and is due prior to release by the City of any final plat. Park development fees are based on an assumed cost for the development of a five acre neighborhood park and apportioned into fixed costs between single family and multi-family dwellings. The fee funds neighborhood park improvements directly benefitting the dwelling units paying the fee. The development fee is imposed at the time of the building permit application and must be paid prior to the issuance of the permit. All fees in lieu of park land dedication and all park development fees must be expended within 10 years of the date of receipt. Funding can be used on acquisition and development of neighborhood parks. If the funds are not expended in the established timeframe, the developer is entitled to a refund of the amount deposited together with accrued interest. The developer must request the refund within a year of entitlement or the right shall be waived. DISCUSSION: On December 5, 2017, PARD presented an overview of the 915 and 916 programs to Council. Challenges in spending the allocated funds such as the distance parameter requirements and administrative complexities related to recording and tracking funds were discussed. Additionally, the legal requirements set by court case precedent were also outlined. Council provided direction to move forward with staff’s recommendation of performing a comprehensive review and update of the current ordinance through a professional service contract. A detailed analysis of population, park acreage, park type, and park usage trends is being performed to develop an updated method of assessing and applying the park dedication and park development programs. CONCLUSION: Staff is working with Technology Service and the Finance Department to implement an improved process for allocating and spending current park dedication and park development funds. The collection of information needed to develop an updated method of assessing and applying the park dedication and park development funding is on-going. The professional services of Dr. John Crompton with Texas A&M University have been secured. Meetings are scheduled to begin in August and a final draft of a revised ordinance is expected by the end of the year. In the interim, PARD evaluates current park dedication and development funds in the process of preparing financing options for park projects. Park development funding has been allocated for the development of Vela Athletic Complex, Industrial Park, Carl Young Sr. Park restrooms, the American Legion Hall rebuild, Sequoia Park trail, pavilion roof repairs, and upgrades to Wiggly Date: July 20, 2018 Report No. 2018-090 Field. Park dedication funds were recently used for the purchase of property at 700 Audra Lane to complete the Mack Park footprint. ATTACHMENT(S): Exhibit 1 Scope of Services STAFF CONTACT: Laura Behrens Assistant Director of Parks and Recreation Laura.Behrens@cityofdenton.com COLLEGE OF AGRICULTURE AND LIFE SCIENCES RECREATION, PARK & TOURISM SCIENCES Agriculture and Life Sciences Building 600 John Kimbrough 2261 TAMU College Station, Texas 77845 Tel. 979.845.7324 Fax. 979.845.0446 http://www.rpts.tamu.edu Proposal by Dr. John L Crompton for development and presentation of a new Park Dedication and Development Fee Ordinance for the City of Denton. The Consultant will deliver the following services: 1. Visit Denton sometime after August 15 that is convenient to the city to collect information, consult with staff and meet with any stakeholders the city deems appropriate. 2. Within two weeks after the initial visit, submit a draft ordinance for the city’s review and amendment. 3. After receiving the city staff’s feedback, present the draft to the city’s Park and Recreation Advisory Board to receive their feedback. 4. Meet with representatives of the development community to receive their feedback. 5. Present the draft to the city’s Planning and Zoning Committee to receive their feedback. 6. Meet with individual city council members as needed to solicit their concerns and feedback. 7. Formally present the proposed ordinance to the city council for them to act upon it. In return for these services, the city of Denton will make a contribution of $18,000 to the Department of Recreation, Park and Tourism Sciences at Texas A&M University in three installments of $6,000 payable after Stages 2, 6 and 7. The City of Denton will pay the consultant’s reasonable travel expenses from College Station to Denton. The authorizing officer for this contract at Texas A&M is: Dr. Scott Shafer, Head, Department of Recreation, Park and Tourism Sciences, Texas A&M University, College Station, Texas 77843-2261