The Fayetteville Planning Commission on July 14 determined that a developer may satisfy parkland dedication requirements by paying a fee in lieu rather than dedicating land for a proposed 324-unit multifamily project near West Van Ash Drive.

Jesse Masters, the planner on the item, said the ordinance normally requires a developer to dedicate either 6.48 acres of land or pay a fee in lieu; for this 19.01-acre site a fee would be $308,448 under the ordinance’s formula (chapter language cited in the staff report). Parks and Natural Resources staff had recommended accepting a fee, but the Parks, Natural Resources and Cultural Affairs Advisory Board voted 2–5 in favor of land dedication, arguing the parcel’s market value exceeds the fee. Masters said the city attorney’s prior legal interpretation has indicated that when a developer chooses to pay the fee, the city should generally defer to that choice.

Robert Rhodes, attorney for the developer Thompson and Thrift and on behalf of property owners, referenced city attorney guidance and urged the commission to accept the developer’s choice to pay the fee. "If the developer chooses to pay a fee in lieu of dedication, the city must abide by that choice," Rhodes said, citing the attorney memo.

Jack, representing Parks and Recreation staff, explained why land valuation can exceed the fee set by the ordinance and said the city is finishing a park impact fee study intended to address that mismatch.

On a motion by Commissioner Garlock, seconded by Commissioner Payne, the commission voted to determine in favor of the applicant’s request to pay the fee in lieu to satisfy parkland dedication requirements and approved the staff-recommended conditions. The roll call recorded unanimous support for the motion.

Key project details provided to the commission: the site is zoned CS (Community Services) and was rezoned in April; the developer’s preliminary plan calls for 324 multifamily units on roughly 19.01 acres; the parks board recommended land dedication, while staff recommended accepting the fee. The commission’s determination allows the developer to pay $308,448 rather than dedicating about 6.48 acres of land for parks under existing ordinance calculations.

Next steps: the fee-in-lieu option will be applied during the development entitlement process; Parks staff will continue work on a park impact fee study that could change future valuation methods for required dedications.