January 2022 - Parks & Recreation - 18

FINANCE FOR THE FIELD
FINANCE FOR THE FIELD
The Trend of Expanding the Scope of
Parkland Dedication Ordinances
By John L. Crompton, Ph.D.
C
ourts have consistently endorsed and enhanced the principle of communities
passing the costs of growth through to new residences that
created the costs. The enhancements have led to the emergence of
" new normals " manifested by expansion of the types of parks that are
eligible, inclusion of development fees, and inclusion of reimbursement clauses.
Figure 1 below shows a continuum of the evolution, extension and expansion
of parkland dedication ordinances that has occurred over the past half century.
Ad Hoc Agreements
Before the tax revolt of the late
1970s, many cities believed they
could achieve more parkland by fostering
developer good will through
negotiating ad hoc agreements than
by mandating it be dedicated. This
approach meant the parkland being
secured depended on the economics
of a development, a developer's
sense of noblesse oblige, local needs,
and the aggressiveness and expertise
of elected representatives and city officials
in negotiating with developers.
However, developers frequently are
represented by specialist lawyers and
consultants whose expertise typically
far exceeds that of local city planners,
so taxpayers are disadvantaged.
Although a goal of negotiated
agreements is to prevent friction
with developers, it often creates
friction. A principle of good governance
is " horizontal equity, "
which requires that equals should
be treated equally. Since negotiated
" donations " are determined
on a case-by-case basis, it is likely
this principle will be breached
with substantially different levels
of dedication being exacted for
similarly situated developments.
The need for a more sustainable
vehicle became apparent in fast
growth cities when the political climate
and legislative actions emanating
from the " tax revolt " of the late
1970s and early 1980s made raising
taxes for acquisition and development
of park facilities infeasible
in many communities. This stimulated
the widespread enacting of
parkland dedication exactions.
Neighborhood
Land Dedication
The earliest approach to replace
negotiation with a fixed formula
imposed " mandatory dedication "
of land for neighborhood parks
Figure 1: Continuum Showing the Evolution and
Expansion of Parkland Dedication Ordinances
1
2
Ad Hoc
Negotiated
Agreements
18 Parks & Recreation |
Neighborhood
Parkland
Dedication
3
Fee-in-Lieu of
Land
4
Land-in-Lieu of
Fee
(Figure 1, stage 2). Developers
were required to deed a specified
amount of land on their site for a
park. However, requiring the dedication
be in the form of land meant
the size of the acquired land was
determined by the size of the developer's
project. Because most projects
involved a relatively small acreage,
only small, fragmented spaces
were provided. They offered limited
potential for recreation and were
relatively expensive to maintain.
Fee-in-Lieu of Parkland
This limitation encouraged cities to
broaden their ordinances to require
developers to pay a fee-in-lieu of the
fair market value of the land that
otherwise would have been dedicated
(Figure 1, stage 3). This meant the
dedication was no longer confined
to a developer's subdivision, because
fees could be spent off-site. The shift
to a cash option also enabled cities to
expand ordinances beyond acquiring
land, so funds could be used to
develop improvements on parkland
and/or to renovate existing parks.
Parkland-in-Lieu of Fee
Some communities have elected to
require payment of fees to be the default
norm, and land-in-lieu of a fee
5
6
Dedication
Beyond the
Neighborhood
J ANUAR Y 2 0 22 | PARK S ANDRECRE AT ION . OR G
Development Fee
January 2022 - Parks & Recreation

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