BACKGROUND
When a developer proposes a residential subdivision, the developer as part of the approval of that subdivision is required to dedicate either a percentage of the land for parkland or a cash-in-lieu payment that is equal to the fair market value of the unsubdivided, unimproved land. (76-3-621, MCA). The cash-in-lieu payment is restricted to use for acquiring or improving other neighboring parks that could serve the subdivision.
Using the undeveloped, unimproved land value for determining the cash-in-lieu is usually insufficient to make substantial improvements in neighboring parks that would serve the newly created subdivision
ACTION
The League will monitor legislation to change the formula for determining “fair market value” for cash-in-lieu payments to closer reflect the value of the post-subdivision, improved tracts.
