HomeMy WebLinkAbout17 - Establishing the Fair Market Value Per Acre for Assessing In Lieu Park Dedication Fees - Staff MemoCITY OF NEWPORT BEACH
COMMUNITY DEVELOPMENT DEPARTMENT
100 Civic Center Drive
Newport Beach, California 92660
949 644-3200
newportbeachca.gov/communitydevelopment
Memorandum
To: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
From: Seimone Jurjis, Assistant City Manager
Date: October 8, 2024
Re: Agenda Item No. 17 — Resolution No. 2024-75: Establishing the Fair
Market Value Per Acre for Assessing In Lieu Park Dedication Fees
The incorrect resolution was previously used for the agenda packet. Attached to
this memo is the corrected resolution, which outlines a phased approach to
implementing the park in lieu fee increase.
The fee will increase in two phases:
1. Six months after the resolution's approval, the fee will be raised to $48,987.
2. One year after the resolution's approval, the fee will be further increased to
$59,575.
RESOLUTION NO. 2024-75
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 (FEE IN LIEU OF
DEDICATION) OF THE NEWPORT BEACH MUNICIPAL
CODE AND RESCINDING RESOLUTION NO. 2020-95
WHEREAS, Chapter 19.52 (Park Dedications and Fees) of the Newport Beach
Municipal Code ("NBMC") establishes a parkland dedication standard of five acres per
thousand population expected to reside in new residential subdivisions in the City of
Newport Beach ("City");
WHEREAS, Section 19.52.050(B) (Determination of Land or Fee — In Lieu Fee)
of the NBMC 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) (Determination of Land or Fee — Both
Dedication and Fee) of the NBMC 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 (Fee in Lieu of Dedication) of the NBMC
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, one commercial
industrial property, and one mixed -use property in the City have established an average
value of $5,343,100 as the fair market value per acre;
WHEREAS, said fair market value would establish an In Lieu Park Dedication Fee
of $59,575.57 per new residential unit created by an approved subdivision;
Resolution No. 2024-
Page 2 of 3
WHEREAS, Resolution No. 2020-95 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 rescinded; and
WHEREAS, the City Council has reviewed the appraisal reports and determines
the average fair market cost per acre to be appropriate.
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as
follows:
Section 1: The amount of $5,343,100 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 $59,575 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 (Park Dedications and Fees) of the NBMC.
Section 3: The In Lieu Park Dedication Fee established herein shall be phased -
in as follows. Six months following the approval of this resolution, the fee shall be set at
$48,987 per unit; and one year following the approval date of this resolution, the fee shall
be set at $59,575 per unit.
Section 4: The recitals provided in this resolution are true and correct and are
incorporated into the operative part of this resolution. This resolution supersedes and
replaces Resolution No. 2020-95 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.
Resolution No. 2024-
Page 3 of 3
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.
Section 7: This resolution shall take effect immediately upon its adoption by the
City Council, and the City Clerk shall certify the vote adopting the resolution.
ADOPTED this 8th day of October, 2024.
Will O'Neill
Mayor
ATTEST:
Leilani I. Brown
City Clerk
APPROVED AS TO FORM:
CITY TTORNEY'S OFFICE
c
aron C. Harp
City Attorney