New home buyers, renters to pay more for parks

Here's one of those good news, bad news scenarios that will affect the pocketbooks of many current and future Yorba Linda residents.

Good news for owners of unimproved residential land: Appraised value for each acre has jumped 54 percent in two years, from $1 million to a bit more than $1.8 million.

Bad news for buyers and renters of newly built dwellings: Sale prices and rents almost certainly will increase due to significant jumps in park fees developers must pay the city.

The two are tied because state law allows cities to collect more money from developers to pay for new parks and renovate existing facilities when the value of vacant land zoned for residential use increases.

Latest appraisal obtained by the city in April put the value of unimproved residential land at $1,851,250 per acre, up from a March 2013 appraisal of $1 million. The new figure is backed by a city-hired consultant's 68-page report detailing methods and market data.

The city used a state-allowed formula to fix a new fee of $16,716 for each new single-family home, up from $9,030, and $10,718 for each new multi-family unit, up from $5,790, with the difference due to the average number of people per unit – 3.01 for single-family and 1.93 for multi-family.

The hike comes in two stages: Half to be collected with building permits issued before July 1, 2016, and the total amount after that date. Developers who've already applied for subdivision maps or other entitlements will pay the old fee, with consumer price index escalators due as building permits are issued.

Included in the formula is the standard set by the city for the number of acres of parkland needed, which was recently increased from two to three acres per 1,000 residents and is identified in the city's General Plan.

To comply with the updated standard, “the city needs to provide more parks and recreation facilities than is currently in place as demand...increases with new residential development,” noted a report from the city attorney's office.

The cash collected from developers is considered an “impact” or “in lieu” fee that is paid instead of donating actual land for new parks and facilities.

The current “in lieu” fund balance is $888,341, including $414,487 in restricted funds for equestrian use, according to a report from Mike Kudron, parks and recreation superintendent.

Kudron noted the recently updated Parks and Recreation Master Plan “reemphasizes that the city is 101 acres deficient” in neighborhood and community parks, and the new fees could generate $5.8 million, based on the number of future anticipated developments.

The state allows cities to levy “in lieu” fees under the Quimby Act for residential development requiring a subdivision map and under the Mitigation Fee Act for other residential projects. The council is expected to add a CPI increase to the fees starting in 2017 and conduct new land appraisals every five years.