Park Dedication Fees exist to ensure that new development contributes its fair share toward the park infrastructure needed to serve additional residents. They are intended to help fund parkland, trails, playgrounds and recreational amenities needed for new growth.
At the October 26th Shorewood City Council meeting, Planning Director Griffiths proposed reducing “Park Dedication Fees” for new subdivisions which are assessed to developers. He asked the council to approve a reduction of fees from $7,500 to as low as $563 per lot without providing a reasonable, evidence-based justification for such a substantial reduction.
The crux of his proposal apparently hinged on a 2023 City of Burnsville lawsuit from a developer claiming that park development fees were unsubstantiated. The Supreme Court of Minnesota ruled in favor of the City of Burnsville. (Puce vs. The City of Burnsville, Minnesota Supreme Court · September 28, 2023 · Case No. A21-0895)
Mr. Griffiths along with Attorney Shepherd claimed that cities around the metro are being threatened by developers, but when asked could not name any. Mr. Griffiths also claimed that many cities around the metro are changing their policies with regards to park dedication fees. But when asked he again could not name any–so we did some digging on our own. Here’s our result:
The proposed change could potentially shift $650,000 in park development costs directly to taxpayers while jeopardizing future park improvements. When Council Member DiGruttolo asked how these proposed new fees would impact the budget, Griffiths stated the finance director told him there would be no impact since the city doesn’t budget for park development fees. DiGruttolo was quick to point out to Griffiths that there is currently $75k in the budget for 2027 and $15k in the budget for 2028.
Conclusion: A proposal with potentially significant financial consequences was brought before the City Council without adequately addressing the legal, financial, and policy questions it raised. Staff was not able to explain what evidence supports the change, what other cities were doing, and who would ultimately pay for the difference. Taxpayers could be left picking up the tab because staff failed to do their homework. That’s not good financial management nor good governance. When fees are reduced or eliminated, the question is straightforward: Who makes up the difference?
Council Members DiGruttolo and Sanschagrin voted against the proposal to change the fee, resulting in a 2–2 tie that defeated the proposal (council member Maddy was not present for the vote).
