March 2010 - Parks & Recreation - 49

in the park dedication requirement. Before the increase, the developer could build 100 units on the
land and sell them for $150,000 each. Based upon
the cost of construction and required profit, she was
willing to pay $2 million for the land. As a result of the
new ordinance, the builder concludes she now has to
charge $151,000 per unit due to the increased cost.
However, if the developer can now sell the houses for
$151,000 each, why did she not charge that price before the imposition of the fee? In fact, the market for
comparable housing limits her to selling the houses
for $150,000 each; thus, she will not be able to sell
them for $151,000. As a result, the builder is only willing to pay $1.9 million for the land, so she is able to
reduce costs and maintain her profit margin.

Tapping the Resources
The unrealized potential of parkland dedication is
surprising given its ability to shift the tax burden
of maintaining existing service levels away from

existing residents to those new residents who create
the need for additional amenities. In most communities, parkland dedication ordinances are under the
purview of planning departments since they constitute a component of a city's subdivision regulations.
Their unrealized potential suggests that many park
and recreation directors have not taken a proactive
role in the development and promotion of these ordinances. This is unfortunate given that many agencies are struggling to find resources to expand and/
or renovate their park systems. Parkland dedication
ordinances offer a mechanism for doing this, but
the field's leaders in a community must be centrally involved in advocating for the improvement and
enhancement of these ordinances if their great potential is to be realized.

John L. Crompton is a Distinguished Professor
Department of Recreation, Park and Tourism Sciences
Texas A&M University.

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