Plano raises park fees for developers in face of rising land costs rise, new state law

Developers planning new single-family or multi-family housing projects in Plano will face substantially higher park fees—a change city officials said is necessary due to rising land costs and new state legislation that restricts the city’s ability to require green space in new development projects.

At their July 28 meeting, Plano City Council members adopted an ordinance increasing the fees, citing both escalating land costs and the anticipated effect of Senate Bill 840, which takes effect in September and expands where multifamily and mixed-use development can be built.

Breaking it down

Park fees are one-time payments charged for each new residential unit to help fund public parkland, ensuring local green space keeps pace with population growth.

Plano’s park fee program was established in 1993, and the fees only go towards funding the purchase, development and improvement of public parkland, according to city documents.

Ron Smith, director of Parks and Recreation, said Plano is divided into 14 zones for park fees and that all fees collected in a zone must be used in the same zone.

“We know that Plano stands for [quality of life], and parks and recreation is a part of that quality of life,” Smith said.

Zooming out

Plano officials are preparing for SB 840 to go into effect, which requires cities to allow multifamily and mixed-use residential development in all nonresidential zoning districts, by holding discussions on how the city’s zoning and development regulations may need to adapt.

SB 840 limits Plano's ability to require open space, such as greenery and recreation areas, in new multifamily housing developments, according to city documents.

As a result, city officials are turning to park fees to ensure that public parkland can meet the anticipated rise in demand for these spaces, Planning Director Christina Day said.

“If we’re preempted by the state from requiring that open space percentage on the lot, what that means is it's driving more intense, more dense development,” Day said. “You’re going to have potentially less green space on the property, so that means people that live in these new developments will rely on public land for their amenities.”

What changed

The increased fees reflect both the impact of SB 840 and increases in land value:

• Single-family homes fees will rise from $2,065 to $5,691 per unit—a 176% increase
• Multi-family homes will rise from $1,443.66 to $4,359.86 per unit—a 202% increase

One more thing

Parks and Recreation Planning Board members recommended at their July 15 meeting that the city review their park fees again in two years, according to city documents.