DUNEDIN — City commissioners have preliminarily approved discounts and incentives aimed at encouraging residential developers to build in the downtown.
At issue is Dunedin’s Land Dedication Ordinance, or LDO. Since the mid 1970s, the ordinance has required owners of new residential developments containing five or more units to either include green space for their residents or contribute to a city fund for future parks. The fee is based on the property’s value.
But as downtown property values increase, the city has received complaints that developers are discouraged from building there due to high LDO fees and little space for parkland in their projects.
The city staff has proposed that developers in downtown’s Community Redevelopment Area receive an automatic 50 percent discount on LDO fees, bringing the rate more in line with fees assessed elsewhere in the city. Developers could earn up to another 35 percent in discounts if they meet certain requirements. Those include adding a mixed-use element such as retail or a restaurant, using high-quality building materials or including open space such as a fountain, plaza or courtyard with benches.