Rancho Palos Verdes City Council
   

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL

FROM: DIRECTOR OF PLANNING, BUILDING & CODE ENFORCEMENT

DATE: SEPTEMBER 16, 2003

SUBJECT: PARKLAND DEDICATION FEES FOR FINAL PARCEL MAP NO. 26692 (Applicant: Mahmood Forouzesh).

Staff Coordinator: Ryan Luckert, Assistant Planner

RECOMMENDATION

Accept the parkland dedication (Quimby) fee for Final Parcel Map No. 26692, pursuant to the City’s parkland dedication fee formula in the amount of $41,135.50.

BACKGROUND

On May 27, 2003, the Planning Commission conditionally approved Tentative Parcel Map No. 26692 thereby allowing a 2-lot subdivision. Pursuant to the City’s subdivision ordinance, a subdivider shall dedicate land, pay a fee in lieu thereof, or a combination of both, at the option of the City, for park and recreational purposes when a subdivision is approved. Furthermore, the ordinance states that if there is no park or recreational facility designated in the City’s General Plan to be located in whole or in part within the proposed subdivision to serve the immediate and future needs of the residents of the subdivision, the subdivider shall, in lieu of dedicating land, pay a fee equal to the land prescribed for dedication. Since there is no park or recreational facility located, or proposed to be located within the approved subdivision, the Planning Commission as part of the conditions of approval, required the applicant to pay a parkland dedication (Quimby) fee in lieu of land dedication. In accordance with the City’s subdivision ordinance, the fee must be paid prior to approval of the final map and shall be determined by the City Council.

SITE AND PROJECT DESCRIPTION

The applicant received Planning Commission approval to subdivide an existing 24,454 square foot vacant parcel located at 7455 Via Lorado with an average slope of 24.7-percent. Parcel 1 will be a vacant parcel containing a lot area of 12,227 square feet, and Parcel 2 will also be vacant and will include a lot area of 12,227 square feet. Pursuant to the subdivision ordinance, the amount of land to be dedicated shall be based on the number of parcels created through the subject subdivision. However, if there is an existing dwelling unit that will remain on one of the new parcels, said parcel shall be exempt from the parkland calculation. Both parcels are subject to the parkland dedication fee since both parcels are currently vacant.

CODE CONSIDERATION AND ANALYSIS

Pursuant to Section 16.20.100 of the City’s Municipal Code, where a fee is required to be paid in lieu of land dedication, the amount of such fee shall be based upon the "fair market value" of the amount of land, which would otherwise be required to be dedicated. Furthermore, the Development Code states that the "fair market value" of the land at the time of the filing the parcel map shall be determined by the City Council using one of four alternative methods. These methods are: 1) tax assessor valuation, if the land has been assessed within one year; 2) sale price of land, if sold within the last five years; 3) the sale of comparable properties; or 4) a land appraisal.

Since the property in question sold approximately 14 months ago, the sale price of the land is being used as the method to determine the property’s fair market value. The applicant submitted the attached "Buyer Closing Statement" from the escrow office to show that the 24,454 square-foot vacant lot was purchased by the subdivider on June 12, 2002 for $805,000. Staff independently verified this transaction by consulting the L.A. County Assessor’s data. Furthermore, in accordance with the City’s Development Code, the inflation rate established by the Consumer Price Index (CPI) for each year subsequent to the sale must be added to the sales price of the property. Staff has used the average CPI rate (shown in attachment) for the second half of 2002 (2002 half 2) and the first half of 2003 (2003 half 1) to calculate the subject property’s current "fair market value" as follows:

July 1, 2002 – December 31, 2002 = 1.9% CPI

January 1, 2003 – July 31, 2003 = 2.5% CPI

(half 2 of year 2002 (1.9%)+ half 1 of year 2003 (2.5%) / 2) = 2.2% (average)

$805,000 x 2.2% = $822,710

Using this adjusted sale price as a market value ($822,710), Staff calculated the per-acre value of the .56-acre property as $1,469,125 per acre (.56 acre at $822,710 = 1.0 at $1,469,125). Based upon the market value, the calculation for the Quimby park fee for this project is as follows:

Market Value of the subject property (per acre) $1,469,125 / acre

Multiplied by: Parkland Dedication requirement 0.0140 acre per dwelling unit

Multiplied by: Number of Parcels 2 parcels

Equals: $41,135.50

Thus, Staff recommends that the total amount of $41,135.50 be paid in lieu of land dedication since Staff believes that the dedication of 0.028 acres of land (.0140 x 2) in this area is not feasible. Staff consulted with the applicant regarding the fee and he has indicated that he will pay it prior to final map recordation.

CONCLUSION

Based upon the discussion above, Staff recommends that the City Council accept the parkland dedication (Quimby) fee of $41,135.50.

ALTERNATIVES

The following alternatives are available for consideration by the City Council:

  1. Accept the parkland dedication (Quimby) fee of $41,135.50 (Staff’s recommendation); or,
  2. Identify any issues or concerns with the proposed appraisal or fee calculation, provide Staff and/or applicant direction to use an alternate method for determining the parkland dedication fee, and continue the item to a future agenda.

Respectfully submitted:

Joel Rojas, aicp

Director of Planning, Building

and Code Enforcement

Reviewed,

Les Evans

City Manager