HomeMy WebLinkAbout10B - Busacker Annexation
CITY COUNCIL AGENDA REPORT
16200 Eagle Creek Avenue S.E.
Prior Lake, MN 55372-1714
MEETING DATE:
AGENDA #:
PREPARED BY:
NOVEMBER 3, 2003
lOB
JANE KANSIER, PLANNING COORDINATOR
AGENDA ITEM:
CONSIDER APPROVAL OF A JOINT RESOLUTION FOR
ORDERLY ANNEXATION BETWEEN THE CITY OF PRIOR LAKE
AND SPRING LAKE TOWNSHIP PURSUANT TO MINNESOTA
STATUTES 414.0325.
DISCUSSION:
History: Tradition Development, on behalf of Lavina Busacker, the owner
of a total of 10.90 acres of land located in Spring Lake Township, has filed a
request to annex this property. The purpose of the annexation is to allow the
development of this property.
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.
The property owners have met with the Spring Lake Township Board to
discuss this request. The Township Board approved and signed a joint
resolution on March 13, 2003 (see attached). The Board did not attach any
conditions to the resolution.
The property owners are now requesting that the City Council sign the joint
resolution and forward it to the Minnesota Office of Boundary Adjustment.
ISSUES:
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. In this case, the area is
adjacent to the City limits along its north boundary. Municipal sewer and
water will be extended in 170th Street to this site as part of the City project in
2004.
www.cityofpriorlake.com
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CONCLUSION:
FISCAL IMPACT:
ALTERNATIVES:
If both the City and the Township agree to the joint resolution, the resolution
is forwarded to the Minnesota Office of Boundary Adjustment for review. If
we are unable to reach agreement on the joint resolution, the City could
annex the property by resolution upon receipt of a petition by the property
owners. This method of annexation does not require approval of the
Township but does require a public hearing by the Office of Boundary
Adjustment. This method is not as cooperative in nature to the joint
resolution process.
It must also be noted that this property is not included on the City's
Comprehensive plan or Zoning Map. If the City Council agrees to annex the
property, either the City Councilor the applicant must initiate an amendment
to the Comprehensive Plan Map to include this area.
This property is adjacent to 170th Street behind County Market. As part of
Phase III of the ring road project, properties receiving benefit from the
extension of sewer and water and the construction of the ring road are to be
specially assessed.
Since this property was not part of the City at the time the ring road phase III
project was initiated, it has not been included in the special assessment
calculation or notices. Staff considered amending the joint resolution to
memorialize the responsibility of the property owner to pay special
assessments and waive their right to appeal. Since such an amendment
would require readoption of the joint resolution by the Townboard, problems
could be created for the larger annexation awaiting approval.
So, instead of amending this joint resolution, the staff has notified the
property owner (see attached letter) and her attorney of our intent to reassess
or reapportion approximately $78,000 in special assessments against the
property as permitted by State law, or in the alternative, to include these fees
as part of a subsequent development agreement for this property. Similar
action will be taken for other properties which benefit from this project, but
which are not to be annexed into the City until a later date.
Approval of the joint resolution is the most cooperative method of
annexation for this property. Development of the property should occur
within the City limits, since sewer and water service are available to serve
this site.
Budf!et Impact: Approval of the annexation will allow the development of
the property within the City limits, which will increase the City tax base.
The City Council has three alternatives:
1. Approve the Joint Resolution as submitted.
2. Approve the Joint Resolution with modifications.
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RECOMMENDED
MOTION:
REVIEWED BY:
3. Authorize further examination of the annexation by ordinance process.
The staff recommends adoption of Alternative #1.
A motion and second to approve the Joint Resolution as submitted is
required. The fully executed document will be forwarded to the Minnesota
Office of Boundary Adjustment for their 30-day review and comment
period.
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JOINT RESOLUTION
CITY OF PRIOR LAKE AND SPRING LAKE TOWNSHIP
AMENDING THE ORIGINAL ORDERLY ANNEXATION AGREEMENT
DOCKET #A-2148(OA)-2
A RESOLUTION ANNEXING PROPERTY FROM SPRING LAKE TOWNSHIP INTO
THE CITY OF PRIOR LAKE
CITY OF PRIOR LAKE RESOLUTION #
WHEREAS, this Joint Resolution designates an area in need of orderly annexation;
provides for the conditions for its annexation; designates that no consideration by the
Minnesota Office of Boundary Adjustment is necessary, but the Office may review and
comment, but shall, within 30 days, order the annexation in accordance with the terms of
this resolution; and reflects that the City of Prior Lake and Spring Lake Township hereby
jointly agree to the following:
1. That the fol/owing described property in Spring Lake Township is subject to
annexation pursuant to Minnesota Statutes 414.031 and the parties hereto designate
this area for orderly annexation, to wit:
That part of government lotS, section 11 , Township 114, range 22 Scott county,
Minnesota, lying west of the east 28 feet east of the following described line:
Beginning at a point on the north line of said Government lot 5, distant 225 feet
east of the northwest corner; thence southerly parallel with the west line of said
government lotS to the shoreline of Crystal Lake and there terminating.
2. That the City Council of the City of Prior Lake and the Board of Supervisors of Spring
Lake Township, upon passage and adoption of this resolution, and upon acceptance
by the Minnesota Office of Boundary Adjustment, agree to the annexation of the
aforementioned property into the City of Prior Lake.
3. 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 RESOLVED BY THE CITY COUNCIL OF THE CITY OF
PRIOR LAKE, SCOTT COUNTY, MINNESOTA, THAT: The City of Prior Lake approves
the proposed annexation of the aforementioned property from Spring Lake Township
into the City of Prior Lake.
Adopted by the City Council of the City of Prior Lake, Scott County, Minnesota, this _
day of ,2003.
Mayor
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ATTEST
Frank Boyles, City Manager
Motion by:
Second by:
YES NO
Haugen
Blombera
LeMair
Petersen
Zieska
NOW THEREFORE BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF
SPRING LAKE TOWNSHIP, SCOTT COUNTY, MINNESOTA, THAT: It hereby
approves the proposed annexation of the aforementioned property from Spring Lake
Township into the City of Prior Lake.
A~ted by the Township Board, Spring Lake Township, Scott County, Minnesota, this
1L- day of fY) tr/ (" A , 2003.
ATTEST: ~
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Spring Lake T ,,'ship Clerk
This instrument was drafted by:
City of Prior Lake
16200 Eagle Creek Avenue SE
Prior Lake, MN 55372
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Chair, ring Lake Township Board
Motion by: 5 fe t/( fJ,'f / S 0 Y\
Second by: f w; t' r1( 6t/..~",)
YES NO
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Location Map for
Busacker Annexation
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May 19, 2003
Thomas Miller
MILLER LAW OFFICE, P.A.
Oak Point Business Center, Suite 6
26357 Forest Boulevard
P.O. Box 807
Wyoming, l\1N 55092
RE: RING ROAD, PHASE 3 Il\1PROVEMENTS
CITY PROJECT NO. 02-06
Dear Mr. Miller: .
I received your letter dated May 13, 2003 regarding the property owned by Lavinia
Busacker that abuts the subject project. City staff met on Thursday, May 15 to discuss the
issues addressed in your letter and have the following responses to your three items:
1. Per the, City's special assessment policy, the Busacker parcel should be assessed
as a large tract or oversized residential parcel. In that case, the first 150 feet of the
- parcel will be assessed at the 40% rate for street and storm sewer improvements
, as 170th Street does provide access to the site. Using the proposed assessment rate
outlined in the Feasibility Report of $92.62/front foot, the estimated assessment
for street and storm sewer improvements would be $13,893.00. The remainder of
the frontage will be paid through the City's Collector Street Fund or Municipal
State Aid Funds.
2. The City requires developers to extend sewer and water to adjacent properties.
Therefore, we feel that the proposed assessment for sanitary sewer and water
main is supported. In this case the property across the street is sharing in tIle cost
of the utility extension, which is also beneficial to the Busacker property as they
don't have to bear the entire cost of the utility improvements. The proposed
assessment for sanitary sewer and water main would be $60.00/front foot
multiplied by the entire front footage of 1,067 feet equaling $64,020.00.
3. I believe that the information I have provided in Item 1 above will address the
concerns you have with the limitations imposed on the property due to the
topography. .
In summary, the total estimated assessment for the Busacker prope
almost half of the original $150,000 that we estimated. We hope that
16200 Eagle Creek Ave. S,E., Prior Lake. Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245
AN EQUAL OPPORTUNITY EMPLOYEE.
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be further reduced by working with the property owner to eliminate the retaining wall
planned along the east end of the property.
I look forward to hearing from you regarding this matter. If you have any questions,
please feel free to call me at (952) 447-9831.
Sincerely,
~w-MV~*
Sue McDermott, P.E.
City Engineer
CITY OF PRIOR LAKE
Cc: Frank Boyles, City Manager
Lavina Busacker
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Thomas F. Miller
Tom@MillerLawOffice.com
MILLER LAW OFFICE, P.A.
Oak Point Business Center, Suite 6
26357 Forest Boulevard
P.O. Box 807 Travis 0, Stottler
Wyoming, MN 55092 Travis@MillerLawOffice.com
(651) 462-0206
Fax (651 )462-3309
May 13, 2003
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Susan McDermott, PE
City Engineer
City of Prior Lake
16200 Eagle Creek Ave SE
Prior Lake, N1N 55372-1714
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Re: Busacker/Tradition Ventures
Our File No. 00-269-TFM
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Dear Ms, McDermott:
This letter is. a follow-up to our meeting on Monday, May 12; 2003 regarding real property
owned by Lavina Busacker, designated as parcel ID No. 119110250 (the "Property"). Based
upon our meeting and a review of the January, 2003 feasibility report prepared by you, it'appears
that Ms. Busacker's Property is proposed to. be the subject of an assessment for improvements to
Trunk Highway 131170thStreet which runs along the north boundary of the Property. The
project designation for this improvement project is 02-06. It is my understanding that the project
is proposed to be completed during 2003, however the issue of annexation of the Property by the
City is currently on hold.
The feasibility report did not contain an estimate of theprop-osed assessment for the Property.
Additionally, my client and I have received various and differing figuring as to the assessments
ranging from $104,000.00 to $284,000.00. However, at our meeting, you indicated that, and I
will assume for purposes of this letter, the assessment amount would be approximately
$150,000.00 for all improvements i.e. street, sanitary sewer, stomi sewer, etc. Further, at our
meeting you suggested that a letter be prepared on behalf of my client proposing any reduction in
the .anticipated assessment and providing you with supporting facts and/or documentation for
consideration by the appropriate committees and ultimately the City Council for the City of Prier
Lake. This letter is in response to that suggestion.
By way of background, as I am sure you are aware, the City's ability to assess for public
improvements is, among other things, . limited to the benefit provided to the Property. .Moreover,
the benefit is measured by ,an increase in the value of the Property as a result of the
improvements in question. Based upon this analysis, it is my client's position that very little if
any of the improvements to be constructed by this project will benefit my client's Property. The
basis for this statement is as follows:
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Susan McDermott, PE
May 13, 2003
Page 2
1. As to the street improvement, I would initially point out that the street (Old Hwy
13/170th Street East) while running adjacent to the Property will not constitute frontage for any
of the lots proposed to be constructed within the Property. In this regard, I enclose for purposes
of your consideration a concept grading plan dated March 24,2003 (the "Grading Plan") and two
(2) drawings respectively showing the front streetscape (dated 4/8/03) and floor plans for the first
floor of the units proposed to be constructed in the Property. As you can see, the development in
question will be centered around and front on a new street to be constructed at the developer's
expense and thereafter dedicated to the City of Prior Lake as a new street constructed in
accordance with City standards and specification. Based upon the Grading Plan, it is clear that
there is in reality no "frontage" along l70th Street and my experience with attempted street
assessments for non-fronting streets is that such improvements provide marginal. benefit to
adjoining properties, if any. Clearly, since there are no separate driveways and similar frontage
related components present in this development (which is the highest and best use of the
Property), we would propose that the street component of the assessment be significantly
reduced or eliminated in its entirety.
2. As to the storm and sanitary sewer components of the improvement project, you
have indicated that no additional cost is being proposed for installing the sewer at a depth so as
to provide gravity feed accessibility.to the proposed development of the Property, In reviewing
the Grading Plan and the site itself, it is quite apparent that utilizing an overalI front footage
calculation based on the entire length. of the Property is inappropriate in this case and will
inevitably lead to. an assessment which cannot be justified under the principals of Minnesota
public improvement assessment law. As support for this I would urge you to revlew the
discussion set forth at number 1 above. Additionally, please note that the main lines themselves
will only run approximately 300 to 350 feet along the Property before access will be achieved via
the utilities to' be installed by the developer as part of this development project. Thereafter, all of
the units constructed within the development will access the lines installed by the developer as
part of its public improvement project and therefore, there is no additional benefit from the
remainder of the lines being constructed in 170th Street. Thus, because the underground
improvements provide only a limited benefit to the Property, it is our position that the sanitary
and storm sewer component should be significantly reduced.
3. Finally, as we discussed at our meeting, I believe the limitations imposed upon
the Property relating to its development must be considered. Referring to the Grading Plan, it is
evident that the developable portion of this Property roughly approximates a little more than half
of its actual size. This'issue is created by a combination of the environmental lake designation of
Crystal Lake, the City's shoreland management ordIDance, the City's setback and related
regulations and the overall topography of the Property. For this additional reason, I believe it
would be highly unlikely that an assessment at the level you have proposed will be supportable
and it is more likely that very. little, if any benefit, can be shown based upon a property value
increase analysis.
As we discussed, my client desires to sell her Property and has a proposed purchaser at this time~
However, prior to proceeding to execution of a purchase agreement, the issue of the amount of
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Susan McDermott, PE
May 13, 2003
Page 3
the assessment should be determined and agreed upon between the City and my client and
thereafter between my client and the proposed purchaser. Reaching agreement will also benefit
the City in that, I assume, if an acceptable level of assessment is agreed upon the parties will be
able to execute a waiver of assessment and thereby save the City a significant amount of cost and
more importantly risk in defending a challenge by my client against the assessment.
Therefore, for all of the foregoing reasons, on behalf of my client, Lavina Busacker, I
respectfully request that the proposed assessment be significantly reduced and thatthe arguments
made in this letter be considered by the appropriate City committees in this regard. I would"
propose that, once you have completed your discussions and received some feedback from the
City representatives, you provide me with a proposed assessment figure so that I can analyze it
and discuss the figure with my client and the proposed purchaser. It would be my hope that,
prior to consideration by the City Council, we could reach agreement at the staff level and with
my client' sconsent as to the level of assessment which could be levied without my client
exercising her right to appeal the assessment on procedural or valuation grounds.
I thank you for the opportunity to submit this letter on behalf of my client and I look fOlward to
your response thereto.
Very truly yours,
_ _ ~.. LER LAW OFF.ICE, P.-A.
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Thomas F.Miller
TFM:lt
Enclosure
cc: Lavina Busacker
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