Tuesday, July 29, 2014

Parkland dedication - Whitebirch Village



As cities grow and gain in population the need for parkland and park improvements increase.  Under Minnesota statutes cities are authorized to require parkland dedication from developers at the time of establishing a new subdivision.  The provision in law allows a city to require either land or cash donation as a condition of development.  Through the subdivision ordinance the city requires 10 percent of the land area or 10 percent of the value of the land in a cash dedication fee.  

Whitebirch Village is in the process of development.  As we worked through the utility issues an easement was needed to cross the golf course for sewer access to a lift station.  Sometimes minor easements are given at no cost but with a larger or longer easement, property owners seek compensation.  An easement does encumber the property.  Negotiating for the easement resulted in a “trade” of parkland dedication for the easement.  

Normally an easement for sewer purposes is paid for from the sewer fund.  Given the trade for an easement it was recognized that the parkland dedication fee was not available for park improvements.  It was recognized that the sewer fund should provide the dedication fee to the park improvement fund.  The parkland dedication requirements for Whitebirch Village amounted to $20,141.62.  The council approved a transfer of funds from the sewer fund to the park improvement fund.  This makes the park improvement fund whole given the trade for the easement to accommodate the sewer line across the golf course.