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HomeMy WebLinkAbout10A Annex Svoboda PropertyZ j PRIOR N U 4646 Dakota Street SE 7 4r,1 VWso 1P Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: JANUARY 3, 2011 AGENDA #: 10A PREPARED BY: DANETTE M. PARR, COMMUNITY DEVELOPMENT & NATURAL RESOURCES DIRECTOR PRESENTERS: DANETTE M. PARR JANE KANSIER, BUILDING & TRANSPORTATION DIRECTOR STEVE ALBRECHT, PUBLIC WORKS DIRECTOR AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING ANNEXA- TION 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 The City of Prior Lake and Spring Lake Township entered into an Orderly Annexation Agreement in 1972. Areas within the Orderly Annexation Area were not subject to any annexation schedule. Township officials and proper- ty owners in the area designated for Orderly Annexation wanted predictabili- ty regarding when their property would come into the City. In 2003 the City and Township terminated the 1972 Orderly Annexation Agreement and en- tered into a new Orderly Annexation Agreement ( "OAA" or "Agreement "). The 2003 OAA divides the land in the Orderly Annexation Area, approx- imately 3,000 acres, into Sub -Areas and each Sub -Area has a correspond- ing year when annexation is anticipated. (See Paragraph 5 of the OAA.) The majority of land areas scheduled to be annexed in 2003 and 2004 were brought into the City of Prior Lake in the year provided for in the Agreement. In order to be eligible for annexation, sewer and water had to be "within 150 feet of any boundary to the legally described Area in the year of annexation" or annexation was delayed. The subject property, Sub -Area 4. 1, was sche- duled for annexation in 2004 but since "sewer and water [were] not within 150 feet of any boundary to the legally described property the annexation of Sub -Area 4.1 was delayed. When the OAA was being negotiated the elected City and Township officials recognized they could not anticipate all contingencies that might occur and that the annexation of a particular Sub - Area could be delayed. The Orderly Annexation Agreement provides for ex- ceptions to the designated year of annexation if sewer and water is not available. Paragraph 5.1 provides: The year of annexation for all [Sub] -Areas set forth [in Paragraph 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. The Exceptions provided for in Paragraph 5.1 addressed the Townships need for predictability about when to expect the annexation of a particular Sub -Area and the City's concern that the schedule for when sewer and wa- ter would be extended was subject to unforeseen contingencies. Current Circumstances The subject property is subject to annexation by resolution. The OAA re- quires the resolution contain the following two statements: 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. If the Council approves the resolution to annex Sub -Area 4.1 staff will meet with the owners of the subject property to discuss what will oc- cur; including the extension of sewer and water, what steps are necessary to protect the City's well -head protection area and the economic development potential for the property. ISSUES: Since 2004, the subject site has increasingly become a 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 groundwa- ter and ultimately drinking water contamination. After annexation of the sub- ject property, City sewer and water will be extended to the site. The City will work with the property owners to further assist in creating safeguards to pro- tect 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. 2 Enforcement: Currently, Scott County is responsible for administering the zoning requirements and Conditional Use Permits for all property in the Or- derly Annexation Area which includes this site. Previously, the site has had enforcement issues related to the outdoor storage and use ofthe site. If the site is annexed into Prior Lake, the City will be able to work directly with the business owners as enforcement issues arise. 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 ade- quate 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 ex- pressed our intent to annex this property and they did not appear to have any concerns. In fact in a recent letter from the Spring Lake Township Clerk (at- tached) the request is made to annex this parcel together with numerous ad- ditional parcels included in the annexation agreement. It appears that the clerk is seeking to have the city provide sewer services to the properties along the north west shore of Spring Lake whose septic systems are failing. Just as with the Vergus and South Shore projects, the City desires to assist the township in connecting the properties to the available sewer, but it is the township and not the City who is responsible for financing and administering the project. FINANCIAL The Orderly Annexation Agreement has three provisions relating to property IMPACT: tax phasing for this Area. Section 6.5 provides that "Areas scheduled for an- nexation between 2004 and 2007 will be subject to [property tax] phasing regardless of the year of annexation. This property is in a Sub -Area 4.1 and was scheduled for annexation in 2004 and although the annexation will not occur until 2011, Paragraph 6.5 mandates the Property Tax Phasing sche- dule set out in Paragraph 6.3 of the Agreement. There are no other pay- ments provisions in the OAA applicable to this site or Area. In addition to the financial impact described above, approval of the annexa- tion will allow the City to work with the property owners to ultimately limit fi- nancial impacts that could result if the Wellhead Protection Area were con- taminated from the site. It's noteworthy that these efforts may ultimately have a financial impact related to the cost the City may incur as a result of staff time and legal fees for potential enforcement. However, the potential for redevelopment of the site could increase the City tax base when it occurs. 3 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. RWIT nti• 4 f� P p RI� /F U � U 4646 Dakota Street SE sso��' Prior Lake, NW 55372 RESOLUTION 11 -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 Township of Spring Lake are parties to an Orderly Annexation Agreement identified as MBA Docket No. OA -967; and WHEREAS, Paragraph 5 in the Orderly Annexation Agreement identifies and designates land within the Orderly Annexation Area (designated as "sub- areas ") by number and provides for the annexation of sub -areas in a given year subject to the availability of sewer and water services; and WHEREAS Paragraph 5 of the Orderly Annexation Agreement further provides that property identified as Sub -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 within 150 feet of any boundary of the legally described Area; and WHEREAS, City sewer and water service was not within 150 feet of Area 4.1 in 2004, therefore the date of annexation was automatically extended for 8 years pursuant to operation of Section 5.1 of the OAA or until sewer and water was with 150 feet of the Sub -Area 4.1 ; and WHEREAS, City sewer and water is now available to extend to the Sub -Area 4.1 and annexation is required by the OAA and timely; 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 legally described properties, to wit: 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. 2. No action by Spring Lake Township or consideration by the Director of the Office of Strategic and Long Range Planning or its successor agency is required to effectuate this annexation. 3. 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 this resolution. 4. 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. Pursuant to Paragraph 6.5 of the Orderly Annexation Agreement the annexation of Sub -Area 4.1 is subject to property tax phasing in accordance with the schedule set out in Section 6.3 a -d. 3. Sub -Area 4.1 -4.4 were designated for annexation in 2004. No other remuneration or payments by the City apply to this annexation. 4. The City of Prior Lake approves the annexation of the aforementioned property, legally described above and in Exhibit 3 of the Orderly Annexation Agreement, from Spring Lake Township into the City of Prior Lake. 5. 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 3rd DAY OF JANUARY 2011. YES NO M ser M ser Erickson Erickson Hedberg Hedber Keeney Keene Soukup Souku Frank Boyles, City Manager 2 §4 / !E ! « ate„ !`!! \ ; \� |!! ! !) §4 a3 / j A Sc f 8'. .2 15 §, +l•a!,- f TOW ' I-I I SPAGIous LIVING. December 15, 2010 Frank Boyles, City Manager City of Prior Lake 4646 Dakota Street SE Prior Lake, Minnesota 55372 RE: Orderly Annexation Agreement Dear Frank: 20381 Fairlawn Avenue Prior Lake, MN 55372 Phone: (952) 492 -7030 Fax: (952) 492 -7722 www.springlaketownship.com RECEIVED f ,'E: a 2 0 2010 The Spring Lake Township Board has had an opportunity to meet with our Township Attorney to review and discuss outstanding issues with the Orderly Annexation Agreement, the map that you provided, and the memo from your City Attorney concerning the interpretation of paragraph 5.1 of the Agreement. After this review we do not believe that the conclusion reached by your City Attorney's strained interpretation of paragraph 5.1 can be sustained. The Agreement is clear that if municipal sewer and water services are available within 150 feet of any boundary of a scheduled annexation area the properties shall be annexed by.the City. Based on the map that you provided, Areas 4.1, 6.1, 6.2, 8.3 and 10.3 (this calendar year) are required to be annexed to the City or Prior Lake. Because the City has not annexed these properties, we believe that the City is in breach of the Agreement. Notwithstanding the City's breach, the Township Board has indicated that it is willing to work with the City to negotiate an appropriate amendment to the Agreement. In the interim, we believe that annexation of properties in Area 6.2 should occur immediately. There are significant health and safety issues concerning the failing septic systems in this area, which warrant immediate annexation into the City and the appropriate public improvement project for the installation of municipal services. It may be worthwhile to schedule a meeting with our appropriate representatives to address these matters further. Thank you for your attention to this matter. Very truly yours, Kathy tels Clerk C: Glenn Kelley Bob Bauer, Severson Sheldon et al