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.