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HomeMy WebLinkAbout9B -Annexation of the Land commonly known as Svoboda PropertyPRlp~ /~ ~' v rn 4646 Dakota Street SE `~rivNSSO`~~' Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: NOVEMBER 15, 2010 AGENDA #: 9B PREPARED BY: DANETTE M. PARR, COMMUNITY DEVELOPMENT 8~ NATURAL RESOURCES DIRECTOR PRESENTER: DANETTE M. PARR AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION DIRECTING STAFF TO PROCEED WITH ANNEXATION OF THE LAND COMMONLY KNOWN AS THE SVOBODA PROPERTY DISCUSSION: Introduction The following report is for the purpose of annexing approximately 8.6 acres of land to the City of Prior Lake from Spring Lake Township. The subject land is located south of CR 21, west of Revere Way, and northeast of the Deerfield Industrial Park (map attached). The site is the current location for three industrial users who collectively utilize office space in a single story building and an adjacent contractor's yard with outdoor storage. History In 2003, the State of Minnesota approved an Orderly Annexation Agreement (OAA) between the City of Prior Lake and Spring Lake Township. The OAA established a schedule for annexation of approximately 3,000 total acres of land located in Sections 4, 10, 11 and 12, Spring Lake Township. The majority of land areas scheduled to be annexed in 2003 and 2004 were brought into the City of Prior Lake as indicated in the agreement. However, in cases where utilities were not yet available to a specific OAA area, the anticipated annexation was delayed. In the case of the subject property, which was scheduled to be annexed in 2004 (as detailed in Section 4.1 of the OAA), the utilities were not yet available from the adjacent Deerfield Industrial Park. For that reason, the site was not annexed into the City of Prior Lake in 2004. Section 5.1 of the Orderly Annexation Agreement addresses what occurs if a property scheduled for annexation in a given year is not annexed, as was the case with this property. Section 5.1 provides: The year of annexation for all Areas set forth above [in Section 5] shall be extended if sewer and water service is not within 150 feet of any boundary to the legally described area. The extension shall be effective until the latter of the following two situations occurs: (1) sewer and water is within 150 feet of the Area, or (2) eight years has elapsed. If eight years elapses and sewer and water is not within 150 feet of the Area, the Area will, without further action by the Township or City, be eliminated from this OAA. Current Circumstances The property in question is located within the Spring Lake Orderly Annexation Area. Under Minnesota Statutes, a request for annexation may be initiated by resolution of either the Township Board or the City Council, or by joint resolution of both bodies. This property was in an Area subject to annexation pursuant to paragraph 5 b of the OAA in 2004. Sewer and water service was not available in 2004. as provided for in Section 5.1 of the OAA and therefore the date by which annexation had to occur was extended by 8 years (2012). If sewer and water is not available to serve the site within the 8 year extension period provided for in Section 5.1 the Area would drop out from the Orderly Annexation Agreement. Section 5.2 of the Orderly Annexation Agreement provides for annexation by resolution for those Areas set out in Section 5 and depicted in Exhibit 2 to the OAA. Section 5.2 states that "the CITY shall pass a resolution...and the resolution shall state that: a. No action by Spring Lake Township or consideration by the Director of Strategic and Long Range Planning or its successor agency is required to effectuate the annexation; and b. The Director of the Office of Strategic and Long Range Planning or its successor agency may review and comment, but shall, within 30 days, order the annexation in accordance with the terms of the resolution. Conclusion Approval of the resolution is consistent with the Orderly Annexation Agreement. Prior to annexation taking place, staff will meet with the subject property owners to discuss the process and answer any questions they may have. ISSUES: Since 2004, the subject site has increasingly become an area of concern in relation the following areas: Wellhead Protection: The subject site is within the Wellhead Protection Area. The industrial nature of the site raises concerns related to groundwater and ultimately drinking water contamination. After annexation of the subject property, the site will have City sewer and water extended. The City will work with the property owners to further assist in creating safeguards to protect the Wellhead Protection Area. Economic Development: The site is located along the CR 21 corridor and serves as a gateway into the City. Once annexation takes place, if the EDA and Council find it appropriate, the City may want to focus on assisting with the redevelopment of this high visibility site. Enforcement: Currently, Scott County is responsible for administering the zoning requirements and Conditional Use Permits for all property in the Orderly Annexation Area which includes this site. Previously, the site has had enforcement issues related to the outdoor storage and use of the site. If the site were annexed into Prior Lake, the City could work directly with the business owners as enforcement issues arise. 2 Minnesota Statute 414.0325 lists the criteria to be used to determine if an area should be annexed. This criteria includes: (a) the subject area is now or is about to become urban or suburban in character and that the annexing municipality is capable of providing the services required by the area within a reasonable time; or (b) the existing township form of government is not adequate to protect the public health, safety, and welfare; or (c) annexation would be in the best interests of the subject area. The Orderly Annexation Agreement also requires that sewer and water service be located within 150' of the area to be annexed. Based on the concerns outlined above and the fact that City has services available to the site, staff believes the criteria are met. Upon annexation, the site will automatically be zoned R-1 (this is the case for all annexed land) and will need to be rezoned. The site is included on the City 2030 Comprehensive Land Use Plan Map as C-HG (Hospitality General Business). In a recent meeting with Spring Lake Township representatives we expressed our intent to annex this property and they did not appear to have any concerns. FINANCIAL The Orderly Annexation Agreement has three provisions relating to IMPACT: property tax phasing for this Area. Section 6.5 provides that "Areas scheduled for annexation between 2004 and 2007wi11 be subject to [property tax] phasing regardless of the year of annexation. This property is in an Area scheduled for annexation in 2004 and although the annexation will occur in 2010, the OAA requires the City to comply with the Property Tax Phasing schedule set out in Section 6.3. There are no other payments provisions in the OAA applicable to this site or Area. In addition to the financial impact described above, approval of the annexation will allow the City to work with the property owners to ultimately limit financial impacts that could result if the Wellhead Protection Area were contaminated from the site. The potential for redevelopment of the site will increase the City tax base when it occurs. Costs associated with connecting the site to City sewer and water will be the responsibility of the property owners. Grant funds received by the City may be available to assist the property owners in defraying costs. ALTERNATIVES: 1. Approve the Resolution as submitted. 2. Approve the Resolution with modifications. 3. Defer this item and direct staff to provide additional information. RECOMMENDED Staff recommends adoption of Alternative #1. MOTION: iew by' Fra yle ity Manager 3 /~ PRIp~ H O U ~ ~~INNESO~/ 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 10-xxx A RESOLUTION ANNEXING PROPERTY FROM SPRING LAKE TOWNSHIP INTO THE CITY OF PRIOR LAKE (DOCKET #OA-967) Motion By: Second By: WHEREAS, The City of Prior Lake and the Town of Spring Lake are parties to an Orderly Annexation Agreement identified as MBA Docket No. OA-967; and WHEREAS, The Orderly Annexation Agreement designates land identified by number and depicted on a map attached as Exhibit 2 to the OAA and provides for annexation in a given year subject to the availability of sewer and water services; and WHEREAS, Property identified as Area 4.1 on Exhibit 2 and legally described in Exhibit A to the OAA provides for annexation of said land in 2004, subject to the availability of sewer and water service with 150 feet of any boundary of the legally WHEREAS, described Area; and City sewer and water service was not with 150 feet of Area 4.1 in 2004, therefore the date of annexation was automatically extended for 8 years WHEREAS, pursuant to operation of Section 5.1 of the OAA for 8 years or until sewer and water was with 150 feet of the Area; and City sewer and water is now available to extend to the Area and annexation is required by the OAA and timely; and WHEREAS, No consideration by the Director of Strategic and Long Range Planning is necessary. The Director may review and comment, and shall, within 30 days, order the annexation in accordance with the terms of this resolution; and WHEREAS, Pursuant to the Orderly Annexation Agreement between the City of Prior Lake and Spring Lake Township (Docket #OA-967), the City of Prior Lake states: 1. That the following described property in Spring Lake Township is subject to annexation pursuant to Minnesota Statutes 414.0325 and hereby requests annexation of the following described properties, to wit: SEE ATTACHED EXHIBIT A 2. That there is no change in electrical service provided for the subject annexation, therefore, State Statute 414.0235, Subd. 1 A, is not applicable. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. The annexation of the Area, designated as 4.1, is subject to property tax phasing in accordance with the schedule set out in Section 6.3 a-d. No other remuneration or payments by the City apply to this annexation. 3. The City of Prior Lake approves the annexation of the aforementioned property, legally described in Exhibit A to the Orderly Annexation Agreement, from Spring Lake Township into the City of Prior Lake. 4. The staff is hereby directed to forward this resolution to Minnesota Municipal Boundary Adjustment for review and comment within 30 days. PASSED AND ADOPTED THIS 15th DAY OF November, 2010. YES NO M ser M ser Erickson Erickson Hedber Hedber Keene Keene Millar Millar Frank Boyles, City Manager EXHIBIT A-LEGAL DESCRIPTION (2004 Orderly Annexation Area noted as 4.1 on the OAA Map) Condominium No 1009, according to the recorded plat thereof, Scott County, Minnesota. And also Registered Land Survey No 98, according to the recorded plat thereof, Scott County, Minnesota. And also that part of the Northeast Quarter of the Northeast Quarter of Section 12, Township 114, Range 22, Scott County, Minnesota, lying Northeasterly of Condominium No. 1009 and Registered Land Survey No. 98, according to the recorded plats thereof in said County.