Presentation on theme: "59th Annual California & Pacific Southwest Recreation And Park Training Conference Are You Getting Enough Park Funding? March 9, 2007 Gerard van Steyn,"— Presentation transcript:
59th Annual California & Pacific Southwest Recreation And Park Training Conference Are You Getting Enough Park Funding? March 9, 2007 Gerard van Steyn, President Blair Aas, Senior Planning Consultant SCIConsultingGroup 4745 Mangels Boulevard Fairfield, CA 94534 Phone 707.430.4300 Fax 707.430.4319 www.sci-cg.com
2 Understanding Our Audience Does your agency currently receive Quimby in-lieu fees for land acquisition? Are your agencys Quimby exactions based on 5 acres per 1,000 residents? Does your agency receive additional fees for building parks and recreation facilities on parkland from Quimby exactions? Are your agencys park development fees (not including Quimby fees) over $6,000 per home? Does your agency also establish annual taxes or assessments on new housing projects to pay for operating, repairing and replacing at least 5 acres of parks per 1,000 additional residents? Are these annual levies over $200/year per home?
3 Understanding Our Audience If your hand is still up, why are you here? (Notice from legal team: Previously disclosed rates are for example only, are low estimates, and may not be adequate.)
4 Learning Outcomes Understand the relationship between Quimby in-lieu fees and park impact fees and how to evaluate whether your agency is receiving the appropriate level of fees from new development for additional parkland and park development. Explore fee rate alternatives, including the justification of fees from commercial and industrial development and advantages of development agreements. Learn about the clear opportunity for funding ongoing operational, maintenance, repair and replacement costs associated with new residential developments.
5 About the Quimby Act Govt. Code § 66477 Subdivision Map Act Does not apply to single-lot development, commercial or industrial subdivisions Provides for... Land dedication (if subdivision exceeds 50 parcels) Fees in lieu of land dedication (if subdivision is 50 or less parcels) Combination of both land dedication and fees for park and recreational purposes Intended to help ensure adequate parkland, (but ironically is most often an inadequate funding source) Imposed by Counties/Cities only (on behalf of a park agency)
6 More about the Quimby Act Factors that determine parkland dedication/in-lieu fee amounts 1)Developed parkland-to-population ratio Based on existing ratio (So if your agency has less than 5 acres/1,000 population, you are probably stuck with an insufficient standard) Minimum - 3 acres per 1,000 population Maximum - 5 acres per 1,000 population maximum 2)Household size (population density) standard 3)Fair market value of land (But is it really fair?) Proposed Number of Units by Housing Type X Average Household Size by Housing Type X Park Acreage Standard 1,000 Population
7 About Park Impact Fees Govt. Code § 66000 / Mitigation Fee Act Impact fees are levied against new development to cover the cost of building/providing park and recreation facilities needed to serve residential and non-residential development Can be used to fund additional parkland acquisition not covered by Quimby May be used instead of or to supplement Quimby in-lieu fees Imposed by County/City only (on behalf of a park agency) Requires nexus findings – Park Impact Fee Nexus Study Typical park development impact fees: $4,500 to $15,000 per single-family home
8 Park Impact Fees Possible Cost Components Land acquisition costs (including open space and trails) Park development costs (including trails) Community use facility construction costs (community centers, senior centers, teen centers, gymnasiums, etc.) Aquatic facility construction costs Support facility construction costs Administrative facilities Maintenance facilities Nexus study and master planning costs Park impact fee administrative costs (City/County and/or District) Important note: Fees cannot include nor be spent on maintenance or operational costs
9 Park Impact Fee Nexus Study Nexus Requirements Reasonable Relationship Purpose of the Fee Use of Fee Revenues Impact Relationship Benefit Relationship Proportionality
10 Now That Its Built, How Do You Run It? Question: Now that your agency have fees for parkland acquisition and the complete development of parks and recreation facilities, how do you maintain them? Answer: Its only fair that new homeowners and businesses pay the unfunded costs of maintaining parks and recreational facilities built for them. Plus, first-rate, well maintained and safe parks and recreation facilities are one of the most important public amenities that affects the desirability of the community, and property values.
11 Funding On-Going O&M and R&R Costs Annual special tax or assessment on new homes will/should fund: 1. Maintenance and Operation 2.Repairs 3.Future Capital Replacements Typical funding mechanisms: Mello-Roos Community Facilities Districts Benefit Assessment Districts Need City/County to include in the projects conditions of approval Typical rates: $100 to $300 plus per year per home No sunset Annual CPI increase
12 Funding Parklands, Park Development and Ongoing Maintenance/Operation 1. Does your agency collect ONLY Quimby in-lieu fees from new residential development projects? Consider also establishing park impact fees to include park and recreational facility construction costs and other associated costs, rather than just land acquisition costs.
13 2. Is your agencys Quimby park acres per 1,000 population standard NOT EQUAL to your agencies desired goal (5+ acres/1,000)? Consider also establishing park impact fees to fund that portion of your agencys parkland goal that is not being met with Quimby exactions. Funding Parklands, Park Development and Ongoing Maintenance/Operation
14 Funding Parklands, Park Development and Ongoing Maintenance/Operation 3. In the method for calculating your agencys Quimby in-lieu fee, how is fair market value of land determined? If it is a fixed amount, does it need to be updated? Fair market value for developable parkland changes considerably over time and needs to be annually reviewed. Typically your County or City determines this value, or just asks the developer who will pay the fees. Often it is well below the actual fair market value (what you will have to pay to buy land). You should get to know who determines the value and introduce them to your cousin Guido (or at least be nice to them).
15 Funding Parklands, Park Development and Ongoing Maintenance/Operation 4. Are all the possible cost components included in your agencys park impact fee? Consider including land acquisition costs; park development costs; construction costs for community use facilities, aquatic facilities, and administrative / maintenance facilities; and any costs associated with your park impact fee program.
16 Funding Parklands, Park Development and Ongoing Maintenance/Operation 5. Does your agency collect park impact fees on new commercial / industrial development projects? A growing employee population also places demands on your agencys park facilities and should bear some of the burden of park improvement and ongoing maintenance costs.
17 Funding Parklands, Park Development and Ongoing Maintenance/Operation 6. Are your agencys park development fees outdated and/or has your agencys park and recreation plans, or community expectations significantly changed to warrant increased fees so you can fund what is desired? Consider a new park impact fee nexus study to reflect any changes in cost estimates, master plan goals or any new capital projects since your fee was last updated.
18 Funding Parklands, Park Development and Ongoing Maintenance/Operation Will your agency generate enough revenue from new development to fully recover on-going operation/maintenance and repair/replacement costs associated with the development? Consider establishing annual Mello-Roos CFD special taxes or Landscape and Lighting special assessments from new development projects to fully fund these costs.
19 Funding Parklands, Park Development and Ongoing Maintenance/Operation 8. Does your agency have developers of upcoming residential subdivisions that could provide turn key park(s) in lieu of paying Quimby in-lieu fees or park impact fees? Consider the mutual benefits of development agreements with developers of large subdivisions.
20 Funding Parklands, Park Development and Ongoing Maintenance/Operation 9. Does your agencys park impact fee ordinance allow for annual inflationary adjustments to reflect changes in land acquisition costs and/or park facility construction costs? Upon adopting a park impact fee ordinance, consider including a provision to allow automatic annual escalations based on the change in an appropriate cost index.
21 Funding Parklands, Park Development and Ongoing Maintenance/Operation What have you learned today and how can it help you?
22 Q & A / Group Discussion SCIConsultingGroup 4745 Mangels Boulevard Fairfield, CA 94534 Phone 707.430.4300 Fax 707.430.4319 email@example.com@sci-cg.com