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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 06/04/2013 - PUBLIC HEARING AND FIRST READING OF ORDINANCE NO.DATE: June 4, 2013 STAFF: Ginny Sawyer Ed Holder, Poudre School District AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 17 SUBJECT Public Hearing and First Reading of Ordinance No. 080, 2013, Authorizing Amendments to the Intergovernmental Agreement Between the City and Poudre School District Pertaining to the Land Dedication and In-Lieu Fee Requirements Contained in Such Agreement. EXECUTIVE SUMMARY Since 1998, the City of Fort Collins has collected a fee-in-lieu of land dedication for both Poudre School District and Thompson School District. These fees allow a residential developer to pay a school site fee to the School Districts rather than dedicate a parcel of land to the District for development of future schools. The ability of the school districts to require land dedication is authorized under Colorado Law. Fees are reviewed every two years and in 2011the Poudre School District reduced fee amounts by 11 percent. This ordinance will increase the amount of the fees the district receives by 6.9 percent. The school district is requesting an increase in the fees collected because of an increase in land values and cost per acreage. This fee amount was reviewed and approved by the Poudre School Board in February 2013. Thompson School District will not be adjusting fees in 2013. BACKGROUND / DISCUSSION In April 1998, the City of Fort Collins and Thompson and Poudre School Districts entered into Intergovernmental Agreements regarding land dedication for new developments, including a provision for fees-in-lieu of land dedication. Poudre School District has asked that the amount of the fees be increased to reflect the current cost of acquiring school sites. Thompson School District has not requested a change. The City’s Intergovernmental Agreement (IGA) with Poudre School District allows for periodic updates to the fees and land dedication requirements. Since adoption of the IGA, fees have been adjusted in 2001, 2006, and 2011. Fees are based on a number of factors including school site size, student population projections, enrollment capacities of each type of school (elementary, junior high and high schools), and the cost of developed land within the school district. Site sizes and enrollment capacities are set by School District policy. School Districts in Colorado are allowed by State law to either require school site dedications from residential developers or collect a fee-in-lieu of such land dedication. The calculation of this fee must be closely tied to the cost of land to be dedicated, as well as the factors listed above. This fee increase is at the request of PSD and is based on a land value analysis performed for the District in late 2012 (Attachment 2). The effect of the proposed change in per dwelling unit costs would be as follows: Poudre School District Fee per dwelling unit: Current Fee Revised Fee 1-4 attached dwelling units $1,600 $1,710 5 or more attached dwelling units $ 800 $ 855 June 4, 2013 -2- ITEM 17 The Intergovernmental Agreement requires that the City conduct a public hearing prior to any changes in the fee or land requirement. The Poudre School District Board has reviewed its methodology for this program and requested that the City Council approve this revision. The detailed methodology for calculating the fees are provided in Exhibits A and B of the Ordinance. FINANCIAL / ECONOMIC IMPACTS The proposed Ordinance will not have a financial impact on the City of Fort Collins because the fees are collected on behalf of Poudre School District. Revenues from the fees will pass through City accounts and will not affect City revenue limits under Article X, Section 20. This Ordinance implements a fee increase requested by Poudre School District. The increased fee will raise the cost of residential development in the community collected at the time of building permit by $110 per single family unit Multi- family unit fees (over 5 units) are increased by $55 per dwelling unit. This is a 6.9% increase. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. PUBLIC OUTREACH This action was reviewed and approved at the February 26, 2013 Poudre School District Board Meeting. ATTACHMENTS 1. PSD Board of Education Agenda Item Summary, February 26, 2013 2. Real Estate Analysis, November 16, 2012 3. PSD Board of Education Exhibit A and B 4. Intergovernmental Agreement between the City and PSD Poudre School District Board of Education Meeting Cover Sheet February 26, 2013 Meeting Print Agenda Item: Approval of the Land Dedication or Payment in Lieu Agreement Update Summary: Type of Communication: Type of Action Requested: Other Action Policy Facts: EL 2.8.9 submit to the Board all matters regarding which Board action is required by law, along with the Superintendent's recommendations and required policy compliance assurances. Background: Poudre School District currently has intergovernmental agreements regarding school site land dedication with Larimer County, the City of Fort Collins, the Town of Windsor, and the Town of Wellington. In even years, the District reviews the data used in determining land dedication and in-lieu payments described in these agreements. Board action is required to approve any recommended changes to the agreement. The only change being recommended is to increase the developed land value from $89,000 per acre to $95,000 per acre. All other criteria will remain unchanged. If approved, the current in-lieu payment of $1,600 per dwelling unit will increase to $1,710 for the next two years. Recommendation: The Superintendent recommends the Board of Education approve updating the School District Planning Standards and Methodology as presented in the attached Exhibits A & B for use in 2013 and 2014 for Intergovernmental Agreements concerning Land Dedications or Payments in Lieu of Land Dedications. ATTACHMENTS: Name: Description: Type: Insight_with_Exhibits_A_and_B- Payment_in_Lieu_of_Land_Agreement_Update.docx Insight -Payment In Lieu of Land Update Cover Memo Poudre School District Board of Education Agenda of Business/Work Session Meeting February 26, 2013 Page 48 of 53 ATTACHMENT 1 POUDRE SCHOOL DISTRICT INSIGHT TO: Nancy Wright, Superintendent of Schools FROM: Mike Spearnak, Director of Planning Design and Construction SUBJECT: Land Dedication or Payment in Lieu Agreements DATE: January 15, 2013 Executive Summary Poudre School District currently has school site land dedication agreements with Larimer County, the City of Fort Collins, the Town of Windsor, and the Town of Wellington. As part of these agreements, land is dedicated or a payment in lieu of land is paid based on “School District Planning Standards” adopted by the Board of Education. These standards include such factors as: student yields, enrollment capacities, site acreage requirements, and developed land costs. These standards are reviewed every two years, and were last updated in December of 2010. Based on the appraisal of developed land valuation supplied by Shannon and Associates, the 2010 update resulted in Board approval of the in-lieu payment of $1,800 per dwelling unit being reduced to $1,600 per dwelling unit. In November of this year, Shannon & Associates was again asked to review current data and provide an updated opinion regarding developed land valuation. The report concluded: “Based on this information and interviews with market participants, it is our opinion that residential land values are slowly appreciating. Based on the current information, it is reasonable to increase the existing $89,000 “interior tract land value per acre” to $95,000 per acre.” If approved, this will result in an increase from the current in-lieu payment of $1,600 per dwelling unit to $1,710 per dwelling unit. Since this review and update only happens once every two years, Staff recommends that the in-lieu payment adjustment, though minor, be approved to avoid a larger adjustment in the future. Staff Recommendation It is recommended that the Board of Education approve updating the School District Planning Standards and Methodology as presented in the attached Exhibits A & B for use in 2013 and 2014 for Intergovernmental Agreements concerning Land Dedications or Payments in Lieu of Land Dedications. Poudre School District Board of Education Agenda of Business/Work Session Meeting February 26, 2013 Page 49 of 53 Exhibit A Poudre School District 2013/14 School District Planning Standards i. Student Yield Per Dwelling Unit1 Category A 1 to 4 attached dwelling units Category B 5 or more attached dwelling units Elementary School 0.35 ½ Category A Middle School 0.10 ½ Category A High School 0.09 ½ Category A Total 0.54 students ii. School Facility Enrollment Capacities2 Elementary School 525 students Middle School 750 students High School 1,800 students iii. School Site Acreage Requirements2 Elementary School 15 acres Middle School 30 acres High School 80 acres iv. Developed Land Value for 20123 $95,000 1Average student yields for elementary, middle school, and high school based on information collected by Western Demographics, Inc. includes all residential dwelling types within the School District. 2Based on Poudre School District’s current educational specifications 3Average land value based on report prepared by Shannon and Associates dated March 14, 2006 and updated August 13, 2008, December 29, 2010, and November 16, 2012. Adjustments to occur every 2 years in the even year based on changes to the Larimer County Assessor’s “Residential Lot Classification”. Poudre School District Board of Education Agenda of Business/Work Session Meeting February 26, 2013 Page 50 of 53 Exhibit B Poudre School District 2012/13 School District Methodology Based on the School District Planning Standards contained in Exhibit A, calculation of land dedication or in-lieu payments uses the following procedures: 1. The student yield is determined by the number of attached dwelling units. (e.g. Category A, Elementary School = 0.35). 2. The amount of land required per student is calculated by dividing the acreage by the capacity. (e.g. Elementary School = 15 acres / 525 students = 0.029). 3. The acreage per dwelling unit is determined by multiplying the student yield by the per student land requirement. (e.g. 0.35 yield x 0.029 acres = 0.010) 4. To convert the land dedication requirement into in-lieu payments, the acreage per dwelling unit is multiplied by the developed land value. (e.g. 0.010 acres x $95,000 = $950.00) Summary The total land dedication or in-lieu payment per dwelling unit is: Category A 1 to 4 attached units Category B 5 or more attached units Land PILO1 Land PILO1 Elementary School 0.0100 acres $ 950 0.005 acres $475 Middle School 0.0040 acres $ 380 0.002 acres $190 High School 0.0040 acres $ 380 0.002 acres $190 Total 0.0180 acres $1,710 0.009 acres $855 To determine the land or in lieu payments for a proposed residential development, the per dwelling unit totals above would be multiplied by the total number of dwelling units in the development. (e.g. 300 single family units = 0.0180 x 300 = 5.4 acre dedication or $1,710 x 300 = $513,000 PILO) 1 PILO means “payment-in-lieu-of” land dedication Poudre School District Board of Education Agenda of Business/Work Session Meeting February 26, 2013 Page 51 of 53 S H A N N O N & A S S O C I A T E S REAL ESTATE APPRAISERS AND CONSULTANTS 215 W. Oak Street, Suite 501 Fort Collins, CO 80521 Phone (970) 482-1010 • Fax (970) 221-4444 shannonassc@shannonmai.com November 16, 2012 Ed Holder Poudre School District 2445 LaPorte Avenue Fort Collins, CO 80521 RE: A consulting assignment to update the Average Developed Residential Land Cost Used in the “Methodology for Calculating Land Dedication Requirements and In-Lieu Payments”, Fort Collins, CO. Dear Mr. Holder: Pursuant to your request, we conducted a consulting assignment regarding an update of a “model” that allows the Poudre School District to estimate the average developed residential land value used in the “Methodology for Calculating Land Dedication Requirements and In-Lieu Payments”. The function of this consultation is to provide the Poudre School District with an updated land value from our prior assignments in 2006 , 2008, and 2010. This report should not be considered an appraisal. This report is written in accordance with Standard 5 of the Uniform Standards of Professional Appraisal Practice (USPAP). To complete this analysis we:  Reviewed the 2006 and 2008 prior consulting assignments.  Reviewed the letter that Shannon & Associates provided on December 29, 2010.  Reviewed more recent sales.  Met with Jody Masters, chief residential land appraiser, with the Larimer County Assessor’s office. Our sales research and discussions with the Assessor’s office indicated that a significant amount of the bank owned residential subdivision land is now owned by developers and new home starts are up significantly from 2010. The current market relative to the market in 2010 is showing some vibrancy and appreciation in activity and sale prices. ATTACHMENT 2 SHANNON & ASSOCIATES Page 2 Real Estate Appraisers & Consultants Client/Function The function of this consultation is to provide the Poudre School District with a methodology for deriving a method of developing land value for building permit contributions to Poudre School District. As part of this function we have provided a current developed land value as a component of this analysis. According to the Uniform Standards of Professional Appraisal Practice (USPAP), Code of Professional Ethics, Appraisal Consulting is defined as: "The act or process of developing an analysis, recommendation, or opinion, where an opinion of value is a component of the analysis leading to the assignment results." General Information According to Mr. Holder (PSD Construction Manager), the Poudre School District uses a formula to calculate a “cash in-lieu fee” that is charged when a residential building permit is issued within the Poudre School District. This fee is collected for the Poudre School District by the governmental jurisdiction issuing the permit. The fee is designed to cover the costs of constructing new schools in the Poudre School District based on a growing student population. The Poudre School District estimates that each new dwelling unit generates the following additional land demand: Typically, additional land for new school construction is located in those areas that are experiencing new residential development activity. Since the school is often competing with developers for land in these areas, it is reasonable to assume that the Poudre School District will pay “fair market value” for their land purchases. The current land cost estimate, used by Poudre School District is based on “developed land value”, which includes streets, utilities, curb and gutters installed around the site. Development costs to the Poudre School District are essentially interior site infrastructure. Often this type of land is found within a subdivision as an undeveloped or "interior tract". School Type Land Needed (in acres) School Type Land Needed (in acres) Elementary 0.01000 Elementary 0.00500 Junior High 0.00400 Junior High 0.00200 High 0.00400 High 0.00200 Total 0.01800 Total 0.00900 1 to 4 Attached Units 5 or More Attached Units SHANNON & ASSOCIATES Page 3 Real Estate Appraisers & Consultants Land Development Stages Land costs for residential development parcels vary on a number of factors. Location is the most obvious factor. Another significant factor is the level of “entitlements” that the development parcel has obtained from the local government. Entitlements are simply the extent of land approvals that the parcel has obtained. The following table details the stages of development that a typical development parcel must pass through on its way from vacant land to approval as finished residential home sites. SHANNON & ASSOCIATES Page 4 Real Estate Appraisers & Consultants Residential Land Development Stages Degree of Development Comments Unannexed These are properties that lie outside of city limits within the county. Typically these properties have less development potential, or must be annexed as part of developing the property. Properties that lie on the fringe of a municipal area are often annexed into the city limits as part of the development process. Annexed Typically, parcels that lie within a municipality will be allowed to be developed to a higher density than those in unincorporated areas. Final Plat Approval This is significant achievement for a development parcel and can take months/years to obtain from the local government. This final plat approval provides developers with a legal right to develop the property per a detailed plan that spells out the number of lots, street layout, and almost every detail of the subdivision. This level of “entitlement” significantly reduces the risk/time of developing the parcel and developers are typically willing to pay a significant premium for parcels that have obtained final plat approval. Developers commonly refer to this level of entitlement as “paper lots”. Improved Subdivision At this stage, the streets, sidewalks, curb and gutter, utilities, streetlights have been installed. The only remaining task is to construct homes. This phase is called “finished lots”. Sometimes developers will have larger tracts within a finished subdivision that they did not put the streets or infrastructure in the initial construction phase. These interior tracts are typically have all of the exterior streets with utilities around these parcels. Often, such interior sites need to obtain more detailed and final entitlements prior to building anything within them. Land at this stage of development is less expensive and actually more appropriate for school sites because schools do not need all the small residential lots with utility lines to each of them. SHANNON & ASSOCIATES Page 5 Real Estate Appraisers & Consultants Subdivision Land Values The following tables are residential land sales from our initial 2006 valuation. General Location Development Stage Area Sale Date Sales Price Land Area AC Price Per Acre E/S WCR 15, ½ mi S of WCR 72 Raw Land - Un-Annexed Windsor Jun-05 $848,000 105.00 $8,076 NEC & SEC WCR 21 & WCR 70 Raw Land - Un-Annexed Windsor Jun-05 $2,542,500 291.20 $8,731 6312 E Harmony Rd Raw Land - Annexed Fort Collins Oct-04 $2,885,460 292.50 $9,865 SE N CR 54 & CR 11 Raw Land - Annexed Fort Collins Nov-05 $868,210 85.50 $10,155 1949 E Douglas Rd Raw Land - Annexed Fort Collins Oct-05 $1,000,000 80.00 $12,500 NEC E Prospect & N CR 5 Raw Land - Un-Annexed Timnath Mar-05 $5,000,000 377.50 $13,245 6625 County Road 9 Raw Land - Annexed Wellington Sep-04 $1,300,000 97.50 $13,333 NEC & NWC WCR 17 & WCR 62 Raw Land - Un-Annexed Windsor Jul-05 $4,165,000 282.00 $14,770 283 N County Road 3 Raw Land - Un-Annexed Fort Collins Jan-05 $1,040,000 64.98 $16,005 NE Hwy 1 & CR 60 Raw Land - Un-Annexed Wellington Apr-05 $1,900,000 113.75 $16,703 LCR 3 & CR 26. Raw Land - Annexed Windsor Jun-05 $5,800,000 306.51 $18,923 6113 E County Road 36 Raw Land - Annexed Fort Collins Dec-05 $11,253,900 375.00 $30,010 LCR 35 & LCR 3 Raw Land - Annexed Timnath Dec-05 $11,253,900 373.30 $30,147 NWC WCR 17 & WCR 64 Raw Land - Annexed Windsor Apr-05 $2,825,280 92.13 $30,667 LCR 9 E of Westchase Rd Raw Land - Annexed Fort Collins Dec-04 $1,042,800 27.00 $38,622 Bellweather Farm Paper Lots - Annexed Fort Collins Nov-05 $924,000 14.30 $64,615 Park Meadows Paper Lots - Annexed Wellington Mar-05 $4,765,000 70.00 $68,071 Columbine Estates Paper Lots - Annexed Wellington Aug-05 $10,778,000 133.00 $81,038 The Meadows - Outlot C Interior Tracts - Annexed Wellington May-04 $1,511,000 16.15 $93,560 Park South – 2 nd Interior Tracts - Annexed Fort Collins Oct-03 $1,000,000 10.42 $95,969 Van de Water Interior Tracts - Annexed Loveland Listing $2,943,000 29.43 $100,000 Rigden Farm Outlot Interior Tracts - Annexed Fort Collins Listing $2,744,280 25.00 $109,771 Buffalo Creek Finished lots - Annexed Wellington Aug-04 $1,072,400 4.61 $232,625 The Meadows Finished lots - Annexed Wellington Jan-05 $850,000 3.05 $278,689 The Meadows Finished lots - Annexed Wellington Nov-04 $750,000 2.67 $280,479 Poudre Heights Finished lots - Annexed Windsor Jul-04 $1,178,500 4.20 $280,595 Buffalo Creek Finished lots - Annexed Wellington Aug-05 $932,400 3.31 $282,118 Knolls – Wellington South Finished lots - Annexed Wellington May-05 $1,101,059 3.84 $286,749 Vista Grande Finished lots - Annexed Fort Collins Nov-05 $2,880,000 8.25 $349,091 Clydesdale Park Finished lots - Annexed Fort Collins Aug-05 $4,100,000 10.57 $387,997 Interior Tracts: Min: $93,560 Max: $109,771 Avg: $99,825 Med: $97,985 Count: 4 2006 Residential Development Land Sales Analysis SHANNON & ASSOCIATES Page 6 Real Estate Appraisers & Consultants The following table shows residential land sales since our 2008 update through 2010. General Location Development Stage Area Sale Date Sale Price Land Area AC Price Per Acre W 71st St Raw Land- Annexed Loveland Sep-10 $800,000 122.00 $6,557 10428 County Road 7 Raw Land- Un-annexed Wellington Apr-08 $1,100,000 94.09 $11,691 County Road 50 Raw Land- Un-annexed Laporte Mar-08 $405,000 27.50 $14,727 W 50th St @ N. Taft Ave. Paper lots- Annexed Loveland Jun-10 $1,850,000 124.00 $14,919 County Road 4 @ Hasse Ct Raw Land- Un-annexed Berthoud Mar-08 $900,000 54.00 $16,667 4308 Kechter Rd Raw Land- Un-annexed Fort Collins Jun-08 $3,079,000 128.00 $24,055 8353 E US Hwy 34 Raw Land- Un-annexed Loveland May-08 $2,663,600 88.79 $29,999 SW Frontage Rd Raw Land- Annexed Fort Collins Aug-10 $800,000 23.44 $34,130 2850 E Harmony Rd Raw Land- Annexed Fort Collins Nov-08 $1,000,000 28.30 $35,336 1750 Mountain River Rd Interior Tract- Un-annexed Berthoud Sep-10 $427,000 6.30 $67,778 4305 E Harmony Rd Interior Tract- Annexed Fort Collins Jun-08 $1,500,000 19.76 $75,911 137 W Willox Ln Interior Tract- Annexed Fort Collins Jul-09 $898,000 10.28 $87,354 Timberline Rd Interior Tract- Annexed Fort Collins Oct-09 $580,000 6.36 $91,195 Krison Rd Interior Tract- Annexed Fort Collins Dec-09 $562,500 4.91 $114,562 Pond View Ct & Hidden Pon Dr Finished Lots Fort Collins Feb-10 $900,000 5.49 $163,934 4709 Prairie Vista Dr Finished Lots Fort Collins Jun-10 $1,655,000 9.98 $165,832 5203-5240 Horizon Ridge Dr Finished Lots Windsor Apr-10 $6,071,378 36.26 $167,440 TBD Hahns Peak Dr Finished Lots Loveland Aug-10 $850,000 4.79 $177,453 5369 Carriage Hill Ct Finished Lots Timnath Apr-10 $1,672,000 9.31 $179,592 4600-4614 Horizon Rdg Finished Lots Windsor Apr-10 $2,341,353 11.25 $208,120 Interior Tracts: Min: $67,778 Max: $114,562 Avg: $87,360 Med: $87,354 Count: 5 2010 Residential Development Land Sales Analysis SHANNON & ASSOCIATES Page 7 Real Estate Appraisers & Consultants The following table shows residential land sales since our 2010 update through 2012 We note the following:  Our measure of value for this consulting assignment is for interior residential tracts.  The 2006 table shows interior tract sale prices per acre ranging from about $94,000 to $110,000 (median price per acre about $98,0000); we concluded $100,000 per acre.  The 2008 value conclusion was $100,000 per acre; no change from 2006.  The 2010 table shows interior tract sale prices per acre ranging from about $68,000 to $114,000 (median price per acre about $87,000); we concluded $89,000 per acre.  The 2012 table shows the interior tract sale price per acre ranging from about $51,000 to $154,000; the median price per acre is about $95,000.  The median price per acre from 2010 to 2012 is up about 9%.  The Larimer County Assessor was applying an 11% downward market adjustment for residential land for years 2009 to 2011. Property Address Development Stage Area Recording Date Sale Price Land Area AC Price Per AC 3268 County Road 3 Raw land- Unannexed Loveland 10/28/2011 $190,000 36.7 $5,177 8353 W US Hwy 34 Raw land- Unannexed Loveland 5/7/2012 $666,000 88.8 $7,501 Turnberry Rd @ Richard''s Lake Rd Raw land- Annexed Fort Collins 3/29/2012 $854,390 82.5 $10,354 610 W County Road 16 Raw land- Unannexed Loveland 2/3/2012 $525,000 39.3 $13,376 E CR 402 Raw land- Unannexed Johnstown 7/26/2012 $225,000 14.9 $15,121 4980 Getaway Dr Raw land- Unannexed Berthoud 8/9/2011 $670,000 35.6 $18,820 1640-1648 E Douglas Rd Raw land- Unannexed Fort Collins 7/18/2012 $780,000 35.0 $22,286 SEQ Vine/Taft Hill Rd Raw land- Unannexed Fort Collins 2/27/2012 $1,050,000 37.5 $28,037 721 N County Road 17 Raw land- Unannexed Berthoud 9/1/2011 $330,000 10.0 $33,000 W 64th St Finished lots Loveland 6/18/2012 $1,330,000 40.2 $33,076 2309-2311 Kechter Rd Raw land- Unannexed Fort Collins 10/11/2012 $1,480,000 28.8 $51,389 4155 Highplains Dr Raw land- Unannexed Berthoud 7/22/2011 $2,060,000 35.9 $57,430 2218 Sopris Cir Finished lots Loveland 9/9/2011 $425,000 6.6 $64,787 SWC Kechter & Strauss Cab Rd Finished lots Fort Collins 2/10/2012 $2,352,000 29.7 $79,192 1003-1050 Linden Gate Ct Finished lots Fort Collins 7/22/2011 $400,000 4.4 $90,090 Summerfields Pky Finished lots Timnath 5/9/2012 $682,000 7.4 $92,789 Boise Ave and 1st St Finished lots Loveland 5/11/2012 $460,000 4.5 $102,222 NWC Redwood/nokomisCt Interior tract- Annexed Fort Collins 12/22/2011 $230,000 4.5 $51,111 1750 Mountain River Rd. Interior tract- Un-annexed Berthod 9/1/2010 $427,000 6.3 $67,778 6732 S Timberline Rd Interior tract- Un-annexed Fort Collins 1/31/2012 $4,000,000 33.0 $121,396 3500 E 15th St Interior tract- Annexed Loveland 1/6/2012 $696,900 4.5 $154,867 NWC Drake/Timberline Rd Finished lots Fort Collins 4/5/2012 $3,550,000 16.1 $220,497 Campfire Dr Finished lots Fort Collins 7/30/2012 $3,093,100 11.5 $268,498 255 Urban Prairie St Finished lots Fort Collins 3/27/2012 $3,654,000 3.6 $1,020,670 Interior Tracts: Min: $51,111 Max: $154,867 Avg: $98,788 Med: $94,587 Count 4 2010-2012 Residential Land Sales SHANNON & ASSOCIATES Page 8 Real Estate Appraisers & Consultants  The Larimer County Assessor is currently not applying any market adjustments, up or down, for residential land.  New home starts in Larimer County are up significantly in 2012 relative to years 2010 and 2011. Based on this information and interviews with market participants, it is our opinion that residential land values are slowly appreciating. Based on the current information, it is reasonable to increase the existing $89,000 “interior tract land value per acre” to $95,000 per acre. Applying $95,000 per acre to the Poudre School District's land demand per student (see page 2) indicates the following development fees: Should you have any addition question regarding the information herein, please feel free to call. Respectfully Submitted, Shannon & Associates Donald J. Shannon, MAI, SRA Colorado-CG01313438 David Bowes, Associate Colorado-CG100013986 School Type Land Needed (in acres) Value Per Acre Fee/Dwelling Unit School Type Land Needed (in acres) Applied Value Per Fee/Dwelling Unit Elementary 0.01000 $95,000 $950 Elementary 0.00500 $95,000 $475 Junior High 0.00400 $95,000 $380 Junior High 0.00200 $95,000 $190 High 0.00400 $95,000 $380 High 0.00200 $95,000 $190 Total 0.01800 $95,000 $1,710 Total 0.00900 $95,000 $855 1 to 4 Attached Units 5 or More Attached Units ATTACHMENT 3 ATTACHMENT 4 ORDINANCE NO. 080, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING AMENDMENTS TO THE INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY AND POUDRE SCHOOL DISTRICT PERTAINING TO THE LAND DEDICATION AND IN-LIEU FEE REQUIREMENTS CONTAINED IN SUCH AGREEMENT WHEREAS, on April 21, 1998, the City entered into an intergovernmental agreement with the Poudre School District, which agreement provides for the dedication of land by developers in the City to said school district for the construction of new schools needed to offset the impacts of their development, or, in the alternative, for the payment of a fee in-lieu of such dedication (the “School Agreement”); and WHEREAS, the requirements imposed upon developers pursuant to the School Agreement have been embodied in the Chapter 7.5 of the City Code; and WHEREAS, Section 7.5-48(d) of the City Code states, in essence, that the amount of the in- lieu fee to be paid by developers is to be established by the School Agreement and is to be equal to the fair market value of the property that could otherwise be required to be reserved for future dedication to the school district; and WHEREAS, Section 7.5-51(b) of the City Code calls for review by the City Council, at least every two years, of the land dedication and in-lieu fee schedule requirements attached to the School Agreement as Exhibit “A” (pertaining to school district planning standards) and Exhibit “B” (methodology for calculating the in-lieu fee); and WHEREAS, Section 1 of the School Agreement states that the school planning standards (Exhibit “A”) should be reviewed annually by the school district and the City and adjusted by mutual agreement as needed, and paragraph 5(a) of such agreement states that both the standards and methodology are to be updated annually; and WHEREAS, the School Agreement, as well as Section 7.5-51(b) of the City Code, require that a public hearing be held by the City before any changes in the amount of the in-lieu fee; and WHEREAS, the Poudre School District has adopted proposed revisions to Exhibits “A” and “B” to the agreement with the City and have requested that the City Council approve the same; and WHEREAS, after a public hearing regarding the proposed changes, the City Council believes that the proposed revisions to said Exhibits “A” and “B” are in the best interests of the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the amended Exhibits “A” and “B” of the Poudre School District Agreement, which Exhibits are attached hereto and incorporated herein by this reference, are hereby approved by the City Council. Section 2. That the Mayor is hereby authorized to execute, on behalf of the City, addenda to the School Agreements reflecting the amendments authorized by this Ordinance. Introduced, considered favorably on first reading, and ordered published this 4th day of June, A.D. 2013, and to be presented for final passage on the 18th day of June, A.D. 2013. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 18th day of June, A.D. 2013. _________________________________ Mayor ATTEST: _____________________________ City Clerk