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Parks and Recreation Board – July 25, 2022

8-5: DRAFT 2022-23 Commuter Commercial Parkland Fee Calculation Methodology Worksheet — original pdf

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DRAFT 2022-2023 Commuter Commercial Parkland Fee Calculation Methodology In 2022 the City Council approved Ordinance XXXXXXXXXX which created a formula to determine the commercial fees required in-lieu of parkland dedication. The Ordinance requires an annual adoption of the parkland dedication fees during the annual fee schedule process. The fee calculation methodologies are established in Β§ 25-X-XXX The below 2022-2023 fees reflect the Council approved calculation methodology to be adopted annually. Several of the variables in the formula are static from year to year, including the square feet per person and the operations hours. Some of the variables will be reevaluated each year based on publicly available data, such as the occupancy rate and the percent commuter workforce, as well as the fees-in-lieu of parkland land dedication and park development. The only variable in the above formula that is unique to the new development is the total square feet of the development. Variables Calculation Factor Description Parkland Level of Service Service Population / Park Acres Fee In-Lieu of Land 96.70 Service Population per 1 acre Park Acres City Population 10,086.32 Park Acres (excludes Metro and District Parks) Parkland Cost Factor $365,653.44 per acre 975,321 (2021 Population) Current City Population Average land cost of acres purchased over the last five years Park Development 4,046.98 Service Population per park Facilities Level of Service Service Population / Number of Developed Parks Number of Developed Parks City Population Park Development Cost Factor 241 975,321 (2021 Population) $1,423,928.42 Count of all developed parks Current city population Cost of developing one Neighborhood Park Functional Population Office Employee Density 300 sq ft /person Office Occupancy 0.92 Office Operation Hours 0.238 Retail Employee Density 550 sq ft / person Retail Occupancy Retail Operation Hours 0.95 0.375 U.S. Green Building Council estimate of the square feet per person in LEED BD+C: New Constructionv4 - LEED v4. Appendix 2. Default occupancy counts Austin area occupancy rates derived from the Chamber of Commerce 'Austin Area Profile' reflecting occupancy by use in Q2 2021 Office use occurs 5 out of 7 days of the week, and 8 hours a day, equal to 23.8 percent (40 hours out of 168 hours a week) operation occupancy. U.S. Green Building Council estimate of the square feet per person in LEED BD+C: New Constructionv4 - LEED v4. Appendix 2. Default occupancy counts Retail occupancy rates derived from NAI Partners report published in Q2 2021 Retail use occurs 7 days of the week, and an average of 9 hours a day for operation, equal to 37.5 percent (63 hours out of 168 hours a week) operation occupancy Industrial Employee Density 2,500 sq ft / person Industrial Occupancy 0.94 Industrial Operation Hours 0.708 Hotel Employee Density 1,500 sq ft / person Hotel Operation Hours 0.708 U.S. Green Building Council estimate of the square feet per person in LEED BD+C: New Constructionv4 - LEED v4. Appendix 2. Default occupancy counts Austin area occupancy rates derived from the Chamber of Commerce 'Austin Area Profile' reflecting occupancy by use in Q2 2021 Industrial use occurs 24 hours every day of the week, equal to 100 percent, but is capped to park operation hours from 5 am to 10 pm, 70.8 percent. U.S. Green Building Council estimate of the square feet per person in LEED BD+C: New Constructionv4 - LEED v4. Appendix 2. Default occupancy counts Hotel/motel use occurs 24 hours every day of the week, equal to 100 percent, as staff is necessary to maintain building operations but operations hours are capped at 70.8 percent to reflect park hours. Percent of Austin’s total workforce population that commutes into Austin from other Jurisdictions Commuter Workforce 0.58 A. Fee In-lieu of Land Formula STEP 1. Land Cost Per Service Population = Parkland Cost Factor/Parkland Level of Service πΏπ‘Žπ‘›π‘‘β€ˆπΆπ‘œπ‘ π‘‘β€ˆπ‘ƒπ‘’π‘Ÿ π‘†π‘’π‘Ÿπ‘£π‘–π‘π‘’ π‘ƒπ‘œπ‘π‘’π‘™π‘Žπ‘‘π‘–π‘œπ‘›β€ˆ = β€ˆ 365,653.44β€ˆπ‘π‘’π‘Ÿβ€ˆπ‘Žπ‘π‘Ÿπ‘’ 96.70β€ˆπ‘†π‘’π‘Ÿπ‘£π‘–π‘π‘’β€ˆπ‘ƒπ‘œπ‘π‘’π‘™π‘Žπ‘‘π‘–π‘œπ‘›β€ˆπ‘π‘’π‘Ÿβ€ˆπ΄π‘π‘Ÿπ‘’ β€ˆ = $3,781.32β€ˆ = β€ˆ$3,781.32 STEP 2. Land Cost Per Sq Ft = (Land Cost Per Service Population / Employee Density) X Occupancy X Operation Hours Office – πΏπ‘Žπ‘›π‘‘β€ˆπΆπ‘œπ‘ π‘‘β€ˆπ‘ƒπ‘’π‘Ÿβ€ˆπ‘†π‘žβ€ˆπΉπ‘‘ = ( ) Γ— 92%β€ˆ Γ— 23.8%β€ˆ Γ— β€ˆ58% = $1.6007 Per Sq Ft 3,781.32 300β€ˆπ‘†π‘“/πΈπ‘šπ‘π‘™π‘œπ‘¦π‘’π‘’ 3,781.32 550β€ˆπ‘†π‘“/πΈπ‘šπ‘π‘™π‘œπ‘¦π‘’π‘’ Retail – πΏπ‘Žπ‘›π‘‘β€ˆπΆπ‘œπ‘ π‘‘β€ˆπ‘ƒπ‘’π‘Ÿβ€ˆπ‘†π‘žβ€ˆπΉπ‘‘ = ( Industrial – πΏπ‘Žπ‘›π‘‘β€ˆπΆπ‘œπ‘ π‘‘β€ˆπ‘ƒπ‘’π‘Ÿβ€ˆπ‘†π‘žβ€ˆπΉπ‘‘ = ( Hotel – πΏπ‘Žπ‘›π‘‘β€ˆπΆπ‘œπ‘ π‘‘β€ˆπ‘ƒπ‘’π‘Ÿβ€ˆπ‘†π‘žβ€ˆπΉπ‘‘ = ( ) Γ— 95%β€ˆ Γ— 37.5%β€ˆ Γ— β€ˆ58%β€ˆ = $1.4206 Per Sq Ft 3,781.32 2,500β€ˆπ‘†π‘“/πΈπ‘šπ‘π‘™π‘œπ‘¦π‘’π‘’ ) Γ— 94%β€ˆ Γ— 70.8%β€ˆ Γ— β€ˆ58% = $0.5838 Per Sq Ft 3,781.32 1,500β€ˆπ‘†π‘“/πΈπ‘šπ‘π‘™π‘œπ‘¦π‘’π‘’ ) Γ— 70.8%β€ˆ Γ— β€ˆ58%= $1.0352 Per Sq Ft STEP 3. Fee in-Lieu of Land = Sq Ft of Development x Land Cost Per Sq Ft Office – Fee in-Lieu of Land = π‘†π‘žβ€ˆπΉπ‘‘β€ˆπ‘œπ‘“β€ˆπ·π‘’π‘£π‘’π‘™π‘œπ‘π‘šπ‘’π‘›π‘‘β€ˆ Γ— β€ˆ$1.6007β€ˆ Retail – Fee in-Lieu of Land = π‘†π‘žβ€ˆπΉπ‘‘β€ˆπ‘œπ‘“β€ˆπ·π‘’π‘£π‘’π‘™π‘œπ‘π‘šπ‘’π‘›π‘‘β€ˆ Γ— β€ˆ$1.4206 Industrial – Fee in-Lieu of Land = β€ˆπ‘†π‘žβ€ˆπΉπ‘‘β€ˆπ‘œπ‘“β€ˆπ·π‘’π‘£π‘’π‘™π‘œπ‘π‘šπ‘’π‘›π‘‘β€ˆ Γ— β€ˆ$0.5838β€ˆ Hotel – Fee in-Lieu of Land = Sq Ft of Development x $1.0352 B. Park Development Fee Formula STEP 1: Development Cost Per Service Population = Facilities Level of Service / Service Population π·π‘’π‘£π‘’π‘™π‘œπ‘π‘šπ‘’π‘›π‘‘β€ˆπΆπ‘œπ‘ π‘‘β€ˆπ‘ƒπ‘’π‘Ÿ π‘†π‘’π‘Ÿπ‘£π‘–π‘π‘’ π‘ƒπ‘œπ‘π‘’π‘™π‘Žπ‘‘π‘–π‘œπ‘› = 1,423,928.42β€ˆπ‘π‘Žπ‘Ÿπ‘˜β€ˆπ‘‘π‘’π‘£π‘’π‘™π‘œπ‘π‘šπ‘’π‘›π‘‘β€ˆ cos 𝑑 β€ˆπ‘“π‘Žπ‘π‘‘π‘œπ‘Ÿ 4,046.98β€ˆβ€ˆπ‘†π‘’π‘Ÿπ‘£π‘–π‘π‘’β€ˆπ‘ƒπ‘œπ‘π‘’π‘™π‘Žπ‘‘π‘–π‘œπ‘›β€ˆπ‘π‘’π‘Ÿβ€ˆπ·π‘’π‘£π‘’π‘™π‘œπ‘π‘’π‘‘β€ˆπ‘ƒπ‘Žπ‘Ÿπ‘˜ = β€ˆ$351.85 STEP 2: Development Cost Per Sq Ft = (Development Cost Per Service Population / Employee Density) X Occupancy X Operation Hours Office – π·π‘’π‘£π‘’π‘™π‘œπ‘π‘šπ‘’π‘›π‘‘β€ˆπΆπ‘œπ‘ π‘‘β€ˆπ‘ƒπ‘’π‘Ÿβ€ˆπ‘†π‘žβ€ˆπΉπ‘‘ = ( ) Γ— 92%β€ˆ Γ— 23.8%β€ˆ Γ— β€ˆ58% = $0.1489 Per Sq Ft 351.85 300β€ˆπ‘†π‘“/πΈπ‘šπ‘π‘™π‘œπ‘¦π‘’π‘’ 351.85 550β€ˆπ‘†π‘“/πΈπ‘šπ‘π‘™π‘œπ‘¦π‘’π‘’ Retail – π·π‘’π‘£π‘’π‘™π‘œπ‘π‘šπ‘’π‘›π‘‘β€ˆπΆπ‘œπ‘ π‘‘β€ˆπ‘ƒπ‘’π‘Ÿβ€ˆπ‘†π‘žβ€ˆπΉπ‘‘ = ( Industrial – π·π‘’π‘£π‘’π‘™π‘œπ‘π‘šπ‘’π‘›π‘‘β€ˆπΆπ‘œπ‘ π‘‘β€ˆπ‘ƒπ‘’π‘Ÿβ€ˆπ‘†π‘žβ€ˆπΉπ‘‘ = ( Hotel– π·π‘’π‘£π‘’π‘™π‘œπ‘π‘šπ‘’π‘›π‘‘β€ˆπΆπ‘œπ‘ π‘‘β€ˆπ‘ƒπ‘’π‘Ÿβ€ˆπ‘†π‘žβ€ˆπΉπ‘‘ = ( ) Γ— 95%β€ˆ Γ— 37.5%β€ˆ Γ— β€ˆ58% = $0.1322 Per Sq Ft 351.85 2,500β€ˆπ‘†π‘“/πΈπ‘šπ‘π‘™π‘œπ‘¦π‘’π‘’ ) Γ— 94%β€ˆ Γ— 70.8%β€ˆ Γ— β€ˆ58% = $0.0543 Per Sq Ft 351.85 1,500β€ˆπ‘†π‘“/πΈπ‘šπ‘π‘™π‘œπ‘¦π‘’π‘’ ) β€ˆ Γ— 70.8%β€ˆ Γ— β€ˆ58% = $0.0963 Per Sq Ft STEP 3. Park Development Fee = Sq Ft of Development x Land Cost Per Sq Ft Office – Park Development Fee = π‘†π‘ž 𝐹𝑑 π‘œπ‘“ π·π‘’π‘£π‘’π‘™π‘œπ‘π‘šπ‘’π‘›π‘‘ Γ— $0.1489 Retail – Park Development Fee = π‘†π‘ž 𝐹𝑑 π‘œπ‘“ π·π‘’π‘£π‘’π‘™π‘œπ‘π‘šπ‘’π‘›π‘‘ Γ— $0.1322 Industrial – Park Development Fee = β€ˆπ‘†π‘žβ€ˆπΉπ‘‘β€ˆπ‘œπ‘“β€ˆπ·π‘’π‘£π‘’π‘™π‘œπ‘π‘šπ‘’π‘›π‘‘β€ˆ Γ— β€ˆ$0.0543β€ˆ Hotel – Park Development Fee = β€ˆπ‘†π‘žβ€ˆπΉπ‘‘β€ˆπ‘œπ‘“β€ˆπ·π‘’π‘£π‘’π‘™π‘œπ‘π‘šπ‘’π‘›π‘‘β€ˆ Γ— β€ˆ$0.0963β€ˆ C: Total Parkland fee-in-lieu + Park Development Fee: Office – $1.6007 + $0.1489 = $1.7497 Per Sq Ft Retail – $1.4206 + $0.1322 = $1.5528 Per Sq Ft Industrial/Warehouse - $0.5838 + $0.0545 = $0.6382 Per Sq Ft Hotel - $1.0352 + $0.0963 = $1.1315 Per Sq Ft