HomeMy WebLinkAbout13 - An Update to the Established Fair Market Value Per Acre for Assessing In -Lieu Park Dedication Fees - Staff MemoMemorandum
CITY OF NEWPORT BEACH
COMMUNITY DEVELOPMENT DEPARTMENT
100 Civic Center Drive
Newport Beach, California 92660
949 644-3200
newportbeachca.gov/communitydevelopment
To: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
From: Seimone Jurjis, Community Development Director
Date: November 9, 2020
Re: Item No. 13 — Resolution No. 2020-95: An Update to the Established
Fair Market Value Per Acre for Assessing In -Lieu Park Dedication
Fees
Staff has amended Resolution No. 2020-95 to follow the Government Code,
related to the In -Lieu Park Dedication Fees. Section 7 has been added and states
that, upon approval by City Council, the In -Lieu Park Dedication Fee will be
increased to $30,217 per unit on a date that is sixty (60) days from the adoption of
the Resolution.
Specifically, on page 3 of the Resolution, Section 7 now reads:
Section 7: This resolution shall be effective sixty (60) calendar days after its
adoption by the City Council, and the City Clerk shall certify the vote adopting the
resolution.
Attachment: Amended Resolution No. 2020-95
RESOLUTION NO. 2020-95
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH, CALIFORNIA, ESTABLISHING THE
FAIR MARKET VALUE PER ACRE TO BE USED IN
ASSESSING IN -LIEU PARK DEDICATION FEES
PURSUANT TO SECTION 19.52.070 OF THE NEWPORT
BEACH MUNICIPAL CODE
WHEREAS, Chapter 19.52 (Park Dedications and Fees) of the Newport Beach
Municipal Code ("NBMC") establishes a parkland dedication standard of five (5) acres per
thousand population expected to reside in new residential subdivisions in the City of Newport
Beach ("City");
WHEREAS, Section 19.52.050(B) requires the subdivider pay an in -lieu fee equal to the
value of land required for dedication for subdivisions containing 50 lots or less;
WHEREAS, Section 19.52.050(C) allows the decision-making body to require land
dedication, an in -lieu fee, or a combination of the two for subdivisions containing more than 50
lots;
WHEREAS, Section 19.52.070 establishes that when a fee is required to be paid in -lieu
of land dedication, that fee shall be equal to the acreage of land which would otherwise be
required to be dedicated, multiplied by the fair market value per acre as established by periodic
appraisal prepared by the City ("In -Lieu Park Dedication Fee");
WHEREAS, the City has retained a qualified appraiser to update and establish the fair
market value per acre;
WHEREAS, the results of the appraisals of two park sites and one commercial industrial
property in the City have established an average value of $3,675,000 as the fair market value
per acre;
WHEREAS, said fair market value would establish an In -Lieu Park Dedication Fee of
$38,400 per new residential unit created by an approved subdivision;
WHEREAS, Resolution No. 2007-30 previously established the fair market value per
acre to be used in computing In -Lieu Park Dedication Fee, and said resolution is to be hereby
superseded and replaced; and
WHEREAS, the City Council has reviewed the appraisal reports and determines the
average fair market cost per acre to be appropriate.
Resolution 2020-95
Page 2of3
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows:
Section 1: The amount of $3,675,000 is the fair market value per acre to be used in
assessing In -Lieu Park Dedication Fee pursuant to Chapter 19.52 (Park Dedications and Fees)
of the NBMC.
Section 2: The amount of $38,400 per new residential unit created by an approved
subdivision is the fair market value in assessing In -Lieu Park Dedication Fee pursuant to
Chapter 19.52 of the NBMC.
Section 3: The In -Lieu Park Dedication Fee established herein shall be phased -in
over three years following approval of this resolution. The fee, upon approval, shall be set at
$30,217 per unit; one (1) year following the approval date of this resolution, the fee shall be
set at $34,309 per unit; and two (2) years following the approval date of this resolution, the fee
shall be set at $38,400 per unit.
Section 4: The recitals provided above are.true and correct and incorporated into the
operative part of this resolution. This resolution supersedes and replaces Resolution No. 2007-
30 and any other resolution that conflicts with the fee amount, adjustments, and phase in
provided in the previous sections.
Section 5: The City Council finds the adoption of this resolution is not subject to the
California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity
will not result in a direct or reasonably foreseeable indirect physical change in the environment)
and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA
Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no
potential for resulting in physical change to the environment, directly or indirectly.
Section 6: If any section, subsection, sentence, clause or phrase of this resolution is,
for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity
or constitutionality of the remaining portions of this resolution. The City Council hereby declares
that it would have passed this resolution, and each section, subsection, sentence, clause or
phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences,
clauses or phrases be declared invalid or unconstitutional.
Resolution 2020-95
Page 3 of 3
Section 7: This resolution shall be effective sixty (60) calendar days after its adoption
by the City Council, and the City Clerk shall certify the vote adopting the resolution.
ADOPTED this 10th day of November, 2020.
Will O'Neill
Mayor
ATTEST:
Leilani I. Brown
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
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Aaron C. Harp
City Attorney