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Item 6C City of Southlake, Texas M E M O R A N D U M March 24, 2008 To: Shana Yelverton, City Manager From: Steve Polasek, Director of Community Services nd Subject: Ordinance No. 483-M, 2 Reading, amending Section 7.05B of Article VII of the Southlake Subdivision Ordinance; providing an incentive to developers seeking to improve existing park facilities Action Requested: Council approval of Ordinance No. 483-M, to amend Section 7.05B of Article VII of the Southlake Subdivision Ordinance; providing an incentive to developers seeking the option of improving existing park facilities in lieu of park land dedication or payment of cash. Background: Following a Developer Workshop held in August of 2007 a series of meetings were held with several prominent Southlake developers regarding their concerns on the current Park Dedication requirements. While there was no disputing the average value proposed to be assigned ($120,000 to be presented to Council in nd conjunction with 2 Reading on April 1, 2008) the developers present did raise some other concerns and hoped to work with the City to explore options that might serve to help alleviate the impact on them while still meeting the needs of the City. Staff conducted four meetings (October-December) with a group of five developers during which they further expressed their concerns. Some of the concerns mentioned include: increased development costs, the decreasing amount of developable land within the City limits, reduction in the need for additional park land, and current development density restrictions. Following much discussion and consideration one option of mutual benefit is a proposal to allow the developer a twenty percent reduction in park dedication fee requirements for making improvements that will serve to immediately improve the condition of Southlake’s park system (ie. Installation of a pavilion, trail, landscape in an existing park). It should be noted that proposed improvement projects would still require the proper review and approvals as currently in place. The proposed twenty percent reduction provides developers with an incentive to address existing needs within our City in a manner that immediately benefits our park system. Costs of approved park improvements will be based on fair market value which will consist of either three cost estimates, three recent comparable prices, three written bids or a combination thereof. This proposed ordinance change will provide a more immediate impact on existing City parks through the addition of such amenities as benches, pavilions, and new trail sections. Changes to the ordinance may allow for the faster completion of amenity improvements and reduced administrative costs for the City during project completion. Additionally, the development community would benefit from the savings incurred from fee reductions and could also benefit from their ability to operate under economies of scale. For example, a developer who is already pouring concrete in their development may achieve a cost savings as compared to the established market value through use of their existing contracts and resources. Financial Considerations: The proposed Ordinance would provide a 20% reduction in park dedication fee requirements for approved projects by developers who seek to make improvements to existing parks in lieu of park land dedication or payment of cash. Park capital improvement costs will be based on City approved market value, to include either three cost estimates, three recent comparable prices, three written bids, or a combination thereof. No cap in project cost is recommended, rather, each proposed project should be reviewed on its own merit to include point of diminishing return. Citizen Input/ st Board Review: Approved by City Council on 1 reading at their March 17, 2008 meeting. Parks Board recommended approval (8-0) at their March 10, 2008 meeting Recommended ordinance amendments were discussed in Work Session with City Council at their February 19, 2008 meeting. Parks Board reviewed this as a discussion item at their February 11, 2008 meeting. Discussions held with Southlake development community at a series of four meetings conducted between October 4, 2007, and December 6, 2007. Legal Review: The City Attorney has reviewed the proposed ordinance. Alternatives: City Council consideration of proposed Ordinance No. 483-M. Supporting Documents: Supporting documents include: Proposed Ordinance No. 483-M  Staff Recommendation: Council approval of Ordinance No. 483-M, to amend Section 7.05B of Article VII of the Southlake Subdivision Ordinance; providing an incentive to developers seeking the option of improving existing park facilities in lieu of park land dedication or payment of cash. ORDINANCE NO. 483-M AN ORDINANCE OF THE CITY OF SOUTHLAKE, TEXAS AMENDING ORDINANCE NO. 483, AS AMENDED, THE SUBDIVISION ORDINANCE BY REVISING ARTICLE VII “PARK AND RECREATION DEDICATION REQUIREMENTS” TO AMEND SECTION 7.05 “ALTERNATIVES TO LAND DEDICATION” TO PROVIDE AN INCENTIVE TO DEVELOPERS CHOOSING THE OPTION OF IMPROVING EXISTING PARK FACILITIES IN LIEU OF PARK LAND DEDICATION OR PAYMENT OF CASH; PROVIDING A PENALTY CLAUSE; PROVIDING THAT THIS ORDINANCE IS CUMULATIVE OF ALL OTHER ORDINANCES; PROVIDING FOR SEVERABLILITY; PROVIDING FOR PUBLICATION; AND PROVIDING AN EFFECTIVE DATE. WHEREAS , the City of Southlake, Texas is a home rule city acting under its charter adopted by the electorate pursuant to Article XI, Section 5 of the Texas Constitution and Chapter 9 of the Local Government Code; and WHEREAS , the City has adopted Ordinance No. 483, as amended, as the Subdivision Ordinance for the City; and WHEREAS , the City Council has determined that in order to provide for adequate land for parks, recreation and open space, it is appropriate and in the best interest of the City to amend Ordinance No. 483, as amended, to authorize an incentive to developers for improvements to existing park land in lieu of payment of cash or park land dedication; and WHEREAS , the City Council has given published notice and held public hearings with respect to the amendment of the Subdivision Ordinance as required by law; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS: SECTION1. Article VII of Ordinance No. 483 of the City of Southlake, as amended, is hereby amended by to provide that Section 7.05 will read as follows: Section 7.05 Alternatives to Land Dedication: In any case where a dedication is required, the City Council shall have the right to accept the dedication as submitted for approval, or in the alternative, to refuse dedication of the same, and in lieu thereof to require payment of cash under the formula contained in this Section or to allow the developer to construct recreation or park improvements. The City may permit a combination of dedication, improvements and fees to be used to fulfill this requirement. A. Fee Payment: 1. Approval of Fee Payment: The City Council shall determine the acceptability of a developer’s payment of fees in lieu of the land dedication requirement of this section. 2. Calculation of Fees: The City Council shall annually establish an acreage land value cost figure to be used in calculating park fees. This determination shall be based on a reasonable study and investigation performed annually, and may be performed by an independent registered land appraisal firm as to the average fair market value, as opposed to tax value, of acreage in the City. This figure shall be the acreage cost under which all park fees are calculated for the fiscal year. a. Residential Dwelling Unit Fees: Fees paid in lieu of dedication shall be based on the determined cost of one (1) acre of land divided by forty (40), for a resulting fee per residential dwelling unit. b. Non-Residential Development Fees: The fee payment alternative for non-residential development shall be calculated by dividing the determined cost of one (1) acre of land by fifty (50), for a resulting fee per non-residential acre cost, or prorated portion thereof. In the event the non-residential development is less than fifty (50) acres, the total acreage, net of perimeter right-of-way dedications, shall be divided by 50 to determine the prorated fee payment. 3. Collection of Fees: No building permit shall be issued nor shall any construction be allowed to begin until payment of any fees required by this section have been made, as specified in a Developer’s Agreement approved by the City, or other city documentation . B. Physical or Equipment Improvements to Parks 1. Compatibility with Park Master Plan or Capital Improvement Plan: A developer seek to improve existing facilities within municipal parks or improving dedicated park land in lieu of park land dedication or payment of cash, based on compatibility with, or recommendations contained in, either the Parks, Recreation and Open Space Master Plan or the City’s Capital Improvement Plan. 2. Market Value of Improvements: Upon City acceptance of proposed park improvements in lieu of park land dedication or payment of cash, all credits for improvements will be granted based on City approved market value (to include three cost estimates, three recent comparable prices, three written bids, or a combination thereof) of the work performed regardless of the actual cost incurred by the developer. The developer shall also be granted a twenty percent (20%) reduction in the developer’s park dedication fee requirements as an incentive to make needed improvements to existing park land. 3. Developers Agreement Required: Should this option be exercised, the municipality and the developer shall, prior to initiation of work on such improvements, enter into a Developers Agreement for credit of expenses for authorized park improvements. The Developers Agreement shall comply with the requirements set forth in Section 7.07 “Approval Process.” In no case shall the municipality be required to reimburse the developer if the developer chooses to improve park lands at an amount greater than required. A proposed Developers Agreement to provide facility improvements in lieu of dedication shall be submitted in writing with the application for any required Concept Plan or Site Plan. In the event that no Concept Plan or Site Plan is required, the proposed Developers Agreement shall be submitted with the application for the preliminary plat. Any improvements for which credit is requested must be submitted for approval by the City Council in a Developers Agreement. SECTION 2. Any person, firm or corporation who violates, disobeys, omits, neglects or refuses to comply with or who resists the enforcement of any of the provisions of this ordinance shall be fined not more than Five Hundred Dollars ($500.00) for each offense. Each day that a violation is permitted to exist shall constitute a separate offense. SECTION 3. This ordinance shall be cumulative of all provisions of ordinances of the City of Southlake, Texas, except where the provisions of this ordinance are in direct conflict with the provisions of such ordinances, in which event the conflicting provisions of such ordinances are hereby repealed. SECTION 4. It is the intention of the City Council that the phrases, clauses, sentences, paragraphs and sections of this ordinance are severable, and if any phrase, clause, sentence, paragraph or section of this ordinance shall be declared unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such unconstitutionality shall not affect any of the remaining phrases, clauses, sentences, paragraphs and sections of this ordinance, since the same would have been enacted by the City Council without the incorporation in this ordinance of any such unconstitutional phrase, clause, sentence, paragraph or section. SECTION 5. The City Secretary of the City of Southlake is directed to publish the proposed ordinance or its caption and penalty together with a notice setting out the time and place for a public hearing thereon at least ten (10) days before the second reading of this ordinance, and if this ordinance provides for the imposition of any penalty, fine or forfeiture for any violation of any of its provisions, then the City Secretary shall additionally publish this ordinance in as required by the Charter of the City of Southlake. SECTION 6. The City Secretary of the City of Southlake is authorized to publish this ordinance in book or pamphlet form for general distribution among the public, and the operative provisions of this ordinance as so published shall be admissible in evidence in all courts without further proof than the production thereof. SECTION 7. This ordinance shall be in full force and effect from and after its passage and publication as required by law, and it is so ordained. PASSED AND APPROVED ON FIRST READING ON THIS _____ DAY OF ________________, 2008. ___________________________________ MAYOR ATTEST: ___________________________________ CITY SECRETARY PASSED AND APPROVED ON SECOND READING ON THIS _____ DAY OF ________________, 2008. ___________________________________ MAYOR ATTEST: ___________________________________ CITY SECRETARY APPROVED AS TO FORM AND LEGALITY: ___________________________________ City Attorney Date:_______________________________ ADOPTED:_________________________ EFFECTIVE:________________________