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HomeMy WebLinkAboutAgenda - 01-16-1996 - X-D 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: January 16, 1996 Action Agenda Item # SUBJECT: REPORT-DEDICATION/PAYMENT-IN-LIEU PROVISIONS DEPARTMENT: PLANNING PUBLIC HEARING: Yes X No ATTACHMENTS: INFORMATION CONTACT: Planning Director 1/11/96 Memorandum Planning Director X2592 TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 967-9251 Durham 688-7331 Mebane 227-2031 PURPOSE: To receive a report on the dedication/payment-in-lieu provisions of the Orange County Subdivision Regulations. BACKGROUND: At the Board of Commissioners June 26, 1995 meeting, a status report was presented concerning Concept Plans approved in the Stoney Creek basin area. The Board directed staff to study the dedication/payment-in-lieu provisions of the Subdivision Regulations and prepare amendments, if needed, for public hearing. At its December 9, 1995 goal-setting retreat, the Board of Commissioners reinterated its desire to have the provisions addressed as soon as possible. The attached report identifies the statutory basis for enacting such provisions, the origins of the current standards, and concerns about the application of the standards. If the Board wishes to proceed with amendments to the provisions, the Board could utilize the following schedule: • February 5, 1996 Board of Commissioners considers notice of public hearing. • February 6, 1996 Recreation&Parks Advisory Council receives report on proposal • February 19, 1996 Planning Board receives report on proposal • February 26, 1996 Public hearing conducted • March 5, 1996 Recreation&Parks Advisory Council prepares recommendation • March 18, 1996 Planning Board prepares recommendation • April 1, 1996 Board of Commissioners considers proposal for decision i 2 Changes through which to address the concerns identified in the attached report will be covered in a separate memorandum to be distributed to the Board. RECOMMENDATION: As the Board decides. 3 MEMORANDUM: TO: ORANGE COUNTY BOARD OF COMMISSIONERS JOHN LINK, COUNTY MANAGER GEOFFREY GLEDHIL4 COUNTY ATTORNEY FROM: MARVIN COLLINS,PLANNING DIRECTOR DATE: JANUARY 11, 1996 SUBJECT: REPORT- DEDICATION/PAYMENT-IN-LIEU PROVISIONS COPIES: BOB JONES,RECREATION & PARKS DIRECTOR At the Board of Commissioners June 26, 1995 meeting, a status report was presented concerning Concept Plans approved in the Stoney Creek basin area. The Board directed staff to study the dedication/payment-in-lieu provisions of the Subdivision Regulations and prepare amendments, if needed, for public hearing. At its December 9, 1995 goal-setting retreat, the Board of Commissioners reiterated its desire to have the provisions addressed as soon as possible. This report identifies the statutory basis for enacting such provisions, the origins of the current standards, and concerns about the application of the standards. If the Board wishes to proceed with amendments to the provisions, the Board could utilize the following schedule: • February 5, 1996 Board of Commissioners considers notice of public hearing. • February 6, 1996 Recreation&Parks Advisory Council receives report on proposal • February 19, 1996 Planning Board receives report on proposal • February 26, 1996 Public hearing conducted • March 5, 1996 Recreation&Parks Advisory Council prepares recommendation • March 18, 1996 Planning Board prepares recommendation • April 1, 1996 Board of Commissioners considers proposal for decision Changes through which to address the concerns identified in this report will be addressed in a separate memorandum to be distributed to the Board. Enabling Legislation Authorization to enact dedication/payment-in-lieu provisions through Subdivision Regulations is contained in G.S. 153A-331. On June 10, 1991, the General Assembly approved a local act (Senate Bill 623, Chapter 246) which permitted Orange County to define immediate (service) areas in terms of the Master Recreation & Parks Plan. Also of significance was the provision which permitted the County to acquire and develop recreational areas using payment-in-lieu funds. The provisions of that statute, including those contained in the local act, are listed below, with pertinent sections highlighted in boldface type. 4 G.9 153A-331. Contents and requirements of ordinances A subdivision ordinance may provide for the orderly growth and development of the county;for the coordination of streets and highways within proposed subdivisions with existing planned streets and highways and with other public facilities, for the dedication or reservation of recreation areas serving residents of the subdivision and residents of the immediate area within which the subdivision is located, and of rights-of-way or easements for street and utility purposes including the dedication of rights-of-way pursuant to G . 136.66.10 or G.S. 136.66.11; and for the distribution of population and traffic in a manner that will avoid congestion and overcrowding and will create conditions essential to public health, safety, and the general welfare. The ordinance may include requirements that the final plat show sufficient data to determine readily and reproduce accurately on the ground the location, bearing, and length of every street and alley line, lot line, easement boundary line, and other property boundaries, including the radius and other data for curved property lines, to an appropriate accuracy and in conformity with good surveying practice. A subdivision control ordinance may provide that a developer may be required to provide funds to the county whereby the county may acquire and develop recreational land or areas to serve the development or subdivision, including the purchase of land which may be used to serve more than one subdivision or development within the immediate area. A subdivision control ordinance may define immediate area by reference to a comprehensive system of parks and recreation areas within the county. Dedication/Payment-In-Lieu Provisions Orange County's dedication/payment-in-lieu provisions were initially adopted by the Board of Commissioners on August 4, 1986 as Section IV-B-7-b, Recreation Sites, of the Subdivision Regulations. Section IV-V-7-b-6 requires that a payment-in-lieu be equal to the number of acres required to be dedicated multiplied by the fair market value of the land to be dedicated. Because of the linkage between "dedication" and "payment-in-lieu", the derivation of each element is discussed below. Dedication Formula Orange County's formula for the amount of land to be dedicated is contained in Section IV-B-7- b-2. At least one thirty-fifth (1135) of an acre shall be dedicated for each dwelling unit planned or provided for in the subdivision plan, except where land is located in the floodplain of a stream or river as indicated by the floodplain maps of the Federal Insurance Administration and/or is characterized by steep slopes (15% or greater), then at least one twentieth (1120) of an acre of such land shall be dedicated for each dwelling unit. Origin. The above formula was derived in part from the dedication/payment-in-lieu provisions of the Town of Cary, particularly the latter portion requiring a higher proportion of land dedication J a 5 where the land was characterized by floodplains and/or steep slopes. The purpose of the provision was to serve as a disincentive and insure, insofar as possible, that "high and dry" land would be made available for recreation purposes. The"1/35" standard was derived from the following formula: A=NxPxR where A= Area, in acres, of the land required to be dedicated for recreation purposes in the subdivision; N= Number of lots or dwelling units proposed in the subdivision; P= Population or average family size according to the latest decennial census for the township in which the subdivision is located; R= Ratio equivalent to 0.01050 or 10.50 acres of developed open space per 1,000 population as recommended by the National Recreation & Parks Association (NRPA) as the upper limit of the minimum standard for establishment of a "core" system of park lands, including the following: • Mini-parks, based on a standard of 0.5 acres per 1,000 population; • Neighborhood parks, based on a standard of 2.0 acres per 1,000 population; and • Community parks, based on a standard of 8.4 acres per 1,000 population. When the dedication/payment-in-lieu provisions were initially presented at public hearing on February 24, 1986, the Board of Commissioners asked that the formula be simplified to a single standard of so many acres per dwelling unit. The standard (1/35 or 0.285) was derived by multiplying the ratio equivalent of 0.01050 times 2.72 persons per household, the average household size according to the 1980 Census. The 1/35 standard was presented at a second public hearing on May 27, -1986 and subsequently adopted on August 4, 1986. Application. Since the adoption of the provisions in 1986 through FY 1994-95, Orange County has accepted dedication of approximately 30 acres of parkland through the dedication provision. All of this land is located in the Joint Planning Area along stream corridors which define and extend the greenway systems originating in Chapel Hill and Carrboro. Only one development application has been considered by Orange County in which land dedication could have occurred - the proposed University Station project. The developer has proposed to dedicate a 25-acre park site for the proposed Eno Community Park, however, a development application was not approved, and the dedication did not occur. Recently, five conceptual plans have been approved for the property which comprised the University Station project site, and one plan has proceeded to the point of receiving preliminary 6 plan approval. The difficulty with the dedication provision is that unless a project is large enough, e.g., of University Station site, or moderate sized subdivisions occur adjacent to each other, there is little opportunity to acquire, through dedication, a single large parcel or collection of smaller, contiguous parcels on which to develop a park. The other difficulty is that, even if dedications were proposed and accepted, the facilities; e.g., playgrounds, courts, etc., would still need to be constructed using other funding sources. Payment-In-Lieu Formula As noted previously, Section IV-V-7-b-6 of the Subdivision Regulations requires that a payment- in-lieu be equal to the number of acres required to be dedicated multiplied by the fair market value of the land to be dedicated. Fair market value is determined by dividing the tax appraisal of the property at last re-evaluation by the current year assessment ratio. As an example, if the appraised value of,a 50-acre tract to be subdivided was $150,000, and the assessment ratio was 95% of fair market value, then the estimated fair market value would be $157,895 ($150,000/0.95) or $3,158 per acre. If the subdivision was to consist of 50 lots, the dedication requirement would be 1.43 acres(50 x 1/35), and the payment-in-lieu would be $4,516 ($3,158 x 1.43) or $90 per lot. Origin. As originally proposed, fair market value was to be determined by an appraisal of the acreage required, after development of the subdivision and with the required improvements (e.g., playgrounds, courts, etc.). The appraisal was to be prepared at the applicant's expense, and, if disagreement arose over the value, a committee comprised on the applicant's appraiser, an appraiser appointed by the County, and a third selected by the other two was to decide the appropriate value. As was the case with the "dedication" provision, the Board of Commissioners asked that the payment-in-lieu provision be simplified as well. The result was the provision described above. Application. Since the adoption of the provisions in 1986 through FY 1994-95, Orange County has collected $130,528 from 1,713 lots, or an average payment of$76 per lot. Collection of these funds has come from the following park service areas: Cheeks Community Park $ 2,030 1.56% Northern Hillsborough Community Park $ 781 0.60% Little River Community Park $ 2,642 2.02% Bingham Community Park $ 4,918 3.77% Cedar Grove Community Park $ 4,010 3.07% Eno Community Park $ 4,838 3.71% Bingham District Park $10,397 7.97% Chapel Hill District Park $38,501 29.50% Northern District Park $28,782 22.05% Cheeks District Park $33,628 25.75% The park service areas referred to above are shown on the accompanying map and represent the "immediate neighborhood'that each park is to serve. As defined in Section II, Definitions, of the Subdivision Regulations, the immediate neighborhood is a subdivision or area of the county • a 7 which distinguishes it from other subdivisions or areas by virtue of its location within the service area of a park site or sites as shown on the adopted Recreation Element of the Comprehensive Plan (e.g., Master Recreation & Parks Plan) or the Joint Planning Area Land Use Plan for Chapel Hill, Carrboro, and Orange County. The Recreation Element designates four (4) district park sites and six (6) community parks sites. The Joint Planning Area Land Use Plan designates a comprehensive system of parks and open spaces designed to serve the residents of the more urbanized towns of Chapel Hill and Carrboro. The significance of the "service areas" or "immediate neighborhoods" is that payments-in-lieu are earmarked to pay for land acquisition and/or facilities associated with the park (service area) from which the funds were collected.. The Master Recreation &Parks Plan recommended a minimum size for community parks of 25 acres and 75 acres for district parks. A survey of land sales in calendar years 1994 and 1995 indicated that the average price per acre for 25-acre tracts was $5,900, while the average price per acre for 75-acre tracts was $2,090. By comparing the payments collected with the average prices projected for 75-acre ($156,750) and 25-acre ($147,500) tracts, it is obvious that one difficulty with the payment-in-lieu provision is that the funds collected do not begin to cover the cost of the park site, much less the facilities to be provided in association with the sites. r 8 _ - "Z' s" • F C!k - IDS- 00-00 a ,.► T d _ s► Cam- .�+ CL� � s.-- . ,w