Lakeville OKs developer's refund request

It's no surprise that developers in Lakeville are asking the city to lower the fees they pay to buy land for parks in new home developments.

What's unusual, as the city begins to study park dedication fees, is that a City Council member has voted for a potential fee reduction sought by her father, a developer. Some see a potential conflict of interest for Council Member Colleen LaBeau, a veteran Realtor and daughter of longtime Twin Cities developer Jim Stanton.

Stanton sent the city a letter contending that park fees are unreasonably high and asking, if they are lowered, for a retroactive reduction on the $170,356 in park fees he will pay for his 37-lot Crescent Ridge single-family home development.

LaBeau joined her fellow council members in a 5-0 vote last Monday to approve Stanton's request that his park fee payment be placed in escrow until the city is done reviewing its park fee structure. If the fees drop, the council agreed that Stanton will receive a refund of the difference between the current rate of $4,747 per single-family lot and the new, lower park fee.

Council Members Matt Little and Kerrin Swecker said they have concerns about LaBeau's vote. Before the council's vote last week on the project, Swecker said she wondered if LaBeau would have a conflict in voting for her father's fee refund. "I was more concerned about the perception," Swecker said.

Asked about a conflict, LaBeau replied: "I don't make any money off what Jim [Stanton] does. I am more concerned about how do we make Lakeville a place with affordable lots for people to want to come and build," she said. "I definitely support any proactive moves that can stimulate housing."

LaBeau had consulted City Attorney Roger Knutson, who said she has no legal conflict in voting on her father's refund request or on reducing park fees.

Although other developers told the city earlier this year that its park fees are too high, Stanton is apparently the first to formally challenge park fee levels, said Park and Recreation Director Steve Michaud.

Michaud said the fee study will look at what other area cities charge developers for park fees and assess how much Lakeville's land values have dropped. He said state law and city codes govern park fee rates and that the standard fees are about equal to 10 percent of land costs. Stanton contended in his letter that the fees represent 33 percent of his land costs.

LaBeau hasn't talked to her father about the fees. "I told him I don't want to discuss it," she said.

Stanton, president of Shamrock Development in Coon Rapids, said his daughter "is pretty independent." However, he said before the council's vote Oct. 17 on Crescent Ridge that "I'm assuming she will abstain on my plat."

But he doesn't see a conflict in LaBeau voting to reduce park fees because "it affects the whole city. It's not unique to me ... she has no direct benefit," he said.

Administrator Steve Mielke said the study should be done by April, before the construction season starts, and returned to the council for a decision.

"Historically, Lakeville has been middle-of-road" on park fees, Michaud said. "For many years we were below what we could have charged."

He noted that the need for parks and athletic fields has in the past exceeded available park fees, and more park referendums are expected. He said voters approved park referendums in 1985 to sell $1.8 million in park bonds and in 1995 for $3.75 million in bonds.

Stanton said he has developed eight housing projects in Lakeville over about 25 years, as well as projects in Coon Rapids, Blaine and Minneapolis, where he lives.

"I don't think the developers are trying to short the city," he said. "They could cut the fees in half and still be ahead."