Chapter 21.50 — PARK LAND DEDICATION OR FEES IN LIEU THEREOF

21.50.010 Findings and purpose.¶

The city council hereby finds that development of residential subdivisions has a significant effect on the use and availability of park and recreation space and facilities, and that the limited open space and recreation amenities provided by these residential developments are insufficient to meet the needs of the residents for open space and recreational facilities. The intent of this chapter is to require that such developments contribute their fair share toward the purchase, development, and/or improvement of park and recreational facilities. The provisions of this chapter are enacted pursuant to the Palo Alto City Charter and the Palo Alto Comprehensive Plan as well as Sections 66477 and 66479 of the Government Code of the State of California, as may be applicable.

(Ord. 4907 § 2 (part), 2006)

21.50.020 Definitions.¶

As used in this chapter:

"District Park" shall include, but is not limited to, a park that serves large areas of the City and contains a broad variety of facilities.

"Neighborhood Park" shall include, but is not limited to, a park of roughly two to 10 acres in size, intended to meet the recreation needs of people living or working within a one-half mile radius.

"Subdivision" shall mean the same as defined in Section 66424 of the California Government Code.

"Subdivider" shall mean a person, firm, corporation, partnership or association who proposes to divide, divides or causes to be divided real property into a subdivision.

"Subdivision map" shall mean any map filed pursuant to any proceedings for subdivision as defined in Title 21 of Palo Alto Municipal Code.

(Ord. 4907 § 2 (part), 2006)

21.50.030 Requirements for residential subdivisions.¶

As a condition of approval of any final subdivision map, the subdivider shall dedicate land, pay a fee in lieu thereof, or both, at the option of the city, for park or recreational purposes according to the following standards:

(a) Dedication of Sites. The subdivider shall be required to dedicate land for park and recreational facilities sufficient in size to serve the residents of the subdivision area. The park land to be so dedicated shall conform to locations and standards set forth in the Comprehensive Plan or a Coordinated Area Plan, if applicable. The slope, topography and geology of the site, as well as its surroundings, must be suitable for the intended park or recreation purpose. The amount of land to be provided shall be determined pursuant to the standards set forth in Sections 21.50.040 through 21.50.050 of this chapter establishing the formula for land dedication or for payment of fees in lieu thereof.

(b) Fees In Lieu of Land Dedication. A fee in lieu of land dedication hereunder shall be required when:

(1) When dedication is impossible, impractical, or undesirable as determined by the director of planning and community environment or the city council as appropriate; or

(2) When the proposed subdivision contains fifty parcels of land or less.

(c) Dedication and Fees Required. In certain subdivisions in excess of fifty parcels of land, a combination of land dedication and fee payment may be required. These shall be subdivisions in which a major part of the park or recreation site falling within the subdivision has already been acquired, and only a small portion of land is needed

from the subdivider to complete the park or recreation site, in which case the land needed shall be required for dedication, and a fee shall then be required in lieu of the additional land that would have been required to be dedicated under this chapter.

(d) Use of and Basis for In-Lieu Fees. The fees collected pursuant to this chapter are to be used only for the purpose of providing park or recreational facilities to serve the subdivision from which fees are collected in accordance with the service area requirements as shown in Table 1. Fees so collected shall be used to purchase land, buy equipment, construct improvements or rehabilitate a proposed or existing neighborhood park, district park, publicly owned conservation land, recreational open space, recreational facility, community gardening facility or combination thereof serving said subdivision. The fee so required shall be based on the fair market value of the land that otherwise would have been required for dedication.

Table 1

PARK SERVICE AREA AND SIZE

PARK SERVICE AREA AND SIZE
PARK TYPE	SERVICE AREA	DESIRABLE SIZE
Mini Park	0 to 1/2 Mile	1/2 to 2 Acres
Neighborhood Park	1/2 Mile	2 to 10 Acres
District Park	Entire City	15 to 50 Acres
Publicly Owned Conservation Land/Recreational Open Space	Entire City	N/A

(Ord. 4907 § 2 (part), 2006)

21.50.040 Land requirement.¶

In accordance with the Palo Alto Comprehensive Plan, it is hereby found and determined that the city of Palo Alto currently provides neighborhood, district park, recreational facilities, and open space to its residents at a ratio of five acres per thousand residents. The public interest, convenience, health, welfare and safety require that five acres of property for each one thousand persons residing within the city of Palo Alto be devoted to public park and recreational facilities.

(Ord. 5005 § 1, 2008: Ord. 4907 § 2 (part), 2006)

21.50.050 Density formula.¶

In calculating dedication and in-lieu fee requirements under this chapter, the following table, derived from the density assumptions of the Comprehensive Plan, shall apply:

Table 2

DENSITY FORMULA

DENSITY FORMULA
Dwelling Density	Density of Persons Per Dwelling Unit	Acreage Requirement Per Dwelling Unit within Subdivision
Single Family	2.44	.0122
Multi Family	1.68	.0084

(Ord. 5005 § 2, 2008: Ord. 4907 § 2 (part), 2006)

21.50.060 Procedure.¶

(a) Payment of fees: Any fee due under this chapter shall be paid as set forth in Chapter 16.64 of this code.

(b) Land dedications. At the time of the filing of the final or parcel map, the subdivider shall dedicate the land to the city by a grant deed or other form acceptable to the city attorney.

(Ord. 5400 § 18 (part), 2016: Ord. 4907 § 2 (part), 2006)

21.50.070 Calculation of fair market value.¶

(a) At the time of submission a final subdivision map for approval, the city shall, in those cases where a fee in lieu of dedication is required either in whole or in part, determine the fair market value of the land in the proposed residential development, and this determination shall be used in calculating the fee to be paid. If the developer objects to the fair market value, the city, at developer's expense, shall obtain an appraisal of the property by a qualified independent real estate appraiser, agreed to by the city and the developer, and the value established by said appraiser using standard recognized appraisal techniques to establish fair market value will be accepted as the fair market value of the land in the proposed development. Alternatively, the city and the developer may agree as to the fair market value.

(b) The fair market value per acre of land for the purposes of the calculation in § 21.50.080 is $5.7 million per acre.

(Ord. 5521 § 2, 2021: Ord. 5400 § 18 (part), 2016: Ord. 5005 § 3, 2008: Ord. 4907 § 2 (part), 2006)

21.50.080 Calculation of requirement.¶

For the purpose of the formula established by this section, the following definition shall apply:

A = the park land dedication acreage required per dwelling unit within the proposed residential development for park and recreational facilities as set forth herein and in Section 21.50.050 of this chapter.

B = the number of new dwelling units in the proposed residential development.

C = the fair market value per acre of land in the proposed residential development.

F = the in-lieu fee required.

L = the land required for dedication.

The following formula shall be used in calculating the land required for the dedication under this chapter:

A x B = L

The following formula shall be used in calculating the in-lieu fees required to be paid under this chapter:

A x B x C = F

(Ord. 4907 § 2 (part), 2006)

21.50.090 Commencement of development.¶

Any fees collected for these purposes shall be committed within five years after payment of such fees or issuance of building permits on one-half of the units of the residential development, whichever occurs later. (Ord. 4907 § 2 (part), 2006)

21.50.100 Exclusions.¶

This chapter shall not apply to the following subdivisions:

(a) Commercial or industrial subdivisions.
(b) Nonresidential condominium units.
(c) Projects or stock cooperatives which consist of the subdivision of air space in an existing apartment building

which is more then five years old when no new dwelling units are added.

(d) Parcel maps for a subdivision containing less than five parcels and not used for residential purposes.
(e) A project with a maximum of two dwelling units that exist on a property if, at the time the subdivision is approved, the existing units are to remain on the property.
(f) 100% affordable housing projects.
(Ord. 4907 § 2 (part), 2006)