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HomeMy WebLinkAbout9B - SMSC Fee to Trust Response (YMCA Property) O� P 'J,iV 4646 Dakota Street SE Prior Lake, MN 55372 `�rtNxEso'�� CITY COUNCIL AGENDA REPORT MEETING DATE: FEBRUARY 9, 2015 AGENDA#: 9B PREPARED BY: FRANK BOYLES, CITY MANAGER PRESENTED BY: FRANK BOYLES AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION APPROVING COMMENTS REGARDING THE CITY'S POSITION ON THE PROPOSED FEE TO TRUST APPLICATION OF THE SMSC FOR APPROXIMATELY 87 ACRES FORMERLY KNOWN AS THE YMCA PROPERTY DISCUSSION: Introduction The purpose of this agenda item is to receive direction from the City Council regarding which comments are to be submitted to the BIA regarding the fee to trust application by the SMSC for the former YMCA properties. History As the City Council is aware, the Shakopee Mdewakanton Sioux Community (SMSC) purchased the 80 +/- acre YMCA property together with another seven acre parcel to the immediate east (see attached graphic). The SMSC is seeking to place both properties in Trust with the Federal Government. On December 18, 2014,the United States Department of the Interior, Bureau of Indian Affairs (BIA) sent a "Notice of (non-gaming) Land Acquisition Application" to Scott County, City of Shakopee, Minnesota Department of Transportation, the Governor's Office, and the SMSC (see attached). This notice should also have been sent by certified mail to the City of Prior Lake. Upon being contacted by the city, the BIA on January 20, 2015 notified the city officially regarding this fee to trust request. Under the terms of the letter the city has 30 days or until February 19, 2015 to respond. Under the terms of the notice the city may request an additional 30 day extension if the need for additional time is demonstrated.. At the January 26, 2015 meeting the City Council discussed this request. A copy of the draft minutes on this subject is attached for City Council information. The council asked that the letter address: 1.) The information requested by the BIA, 2.) The city's position and comments with respect to this request, and 3.) The city's longer term concerns with respect to the currently in place process. The response is intended to address each. Current Circumstances This application for Fee to Trust involves three parcels:the 80.34 acre YMCA parcel, a 7 acre YMCA parcel,-both in Prior Lake and a 6 acre West Mazario parcel in Shakopee. Phone 952.447.9800/Fax 952.447.4245/www.cityofpriorlak-e.com The subject parcels are adjacent to and contiguous to existing SMSC lands. Quoting from the BIA letter: "The trust acquisition of this land will promote culturally based educational activities for members of the SMSC that involve the protection, development and preservation of property, wildlife and natural resources of the Community. Natural areas within the county are a diminishing resource and are vital to maintain Dakota culture which is closely linked to the environment." The letter goes on to say that, "...the purpose for seeking your comments regarding the proposed trust land acquisition is to obtain sufficient data that would enable an analysis of the potential impact on local/state government, which may result from the removal of the subject property from the tax roll of the local jurisdiction." The specific information sought includes (for the 80.34 acre Prior Lake parcel): • Annual amount of property taxes currently levied on the subject property and allocated to the City of Prior Lake. $0 property taxes were levied in 2013 or 2014 against this property. • Any special assessments, and amounts thereof, that are currently assessed against the property to support our organization. $0 special assessments in 2013 or 2014. • Any governmental services that are currently provided to the property by your organization. Fire (shared with Mdewakanton Fire) and Police. • If subject to zoning, how the intended use is consistent or inconsistent with the zoning. The land is guided in the City's 2030 Comprehensive Plan as R-LD (urban low density)which anticipates 0-4 dwelling units per acre. The zoning is agricultural. Conclusion The staff has prepared a response (attached) to the BIA for City Council review based upon direction you provided. ISSUES: The City Council asked for a copy of the responses to this trust request already submitted by Shakopee and Scott County. They are attached for information. The City Council has a number of possible actions it can take. One action is do nothing. The BIA will proceed with the process and act upon the application based upon the available information. 2 The City Council could respond but limit its response solely to the four questions the BIA asked in its notification. The City Council could remain neutral about this request but express longer term concerns about the process. The City Council could oppose this fee to trust request and send a letter to the BIA reflecting that sentiment. The draft response the staff has provided is based upon our interpretation of the City Council's comments at the January 26, 2015 meeting. Those draft minutes are part of tonight's packet if council members with to refer to them. With respect to the attached draft response the City Council could make whatever revisions they wish at the meeting and direct that the revised document be sent;or direct that the staff to make modifications and then, distribute them to councilors for comment, receive input and send the final draft to the BIA by the deadline. Another alternative is to ask for a thirty day extension from the BIA and ask for additional information,conduct a work session or discuss this topic during the February 23rd City Council meeting. FINANCIAL Depending upon City Council action. IMPACT: ALTERNATIVES: 1) Motion and second to approve the response to the BIA as written. 2) Motion and second to approve a modified response to the BIA and direct staff to prepare and solicit input on the revisions prior to mailing it. 3) Take no action. RECOMMENDED As determined by the City Council. MOTION: 3 O� PR1 ti U 4646 Dakota Street SE Prior Lake, MN 5 53 72 �rNNES��P February 10, 2015 United States Department of the Interior Bureau of Indian Affairs Midwest Regional Office Attn: Regional Director 5600 West American Boulevard, Suite 500 Bloomington, Minnesota 55437 Re: Shakopee Mdewakanton Sioux Community Fee to Trust Application Dear Ms. Rosen: Pursuant to the Notice of Non-Gaming Land Acquisition Application ("Application") dated January 20, 2015,the City of Prior Lake submits the following response. On January 15, 2015 the City of Prior Lake became aware of an application filed with the BIA by the Shakopee Mdewakanton Sioux Community("SMSC") to transfer approximately 93.34 acres of land ("Property") into trust and to declare it part of the SMSC reservation.A majority of the Property,approximately 87.34 acres,is located within the City of Prior Lake. The SMSC subsequently emailed a copy of the application to the City. The City immediately contacted the BIA and was given thirty days to comment from the receipt of notice dated January 20, 2015. I. INFORMATION REQUESTED BY BIA: In answer to specific questions asked by the BIA in the notice dated January 20, 2015: a. Property Taxes. The Property has been tax exempt for a number of years due to ownership by the YMCA, a tax exempt organization. b. Assessments. There are no existing assessments on the Property. c. Services. The City provides police services to the Property. The City has also provided and maintained access to the Property over Pike Lake Trail. The City and SMSC cooperatively provide fire services to the Property. Phone 952.447.9800/Fax 952.447.4245/www.cityofpriorlake.com Regional Director, Midwest Regional Office U.S. Dept. of the Interior, Bureau of Indian Affairs February 10, 2015 Page 2 d. Zoning. The Property is zoned agricultural and is guided urban low density (0 to 4 dwellings per acre). II. POSITION WITH RESPECT TO THIS APPLICATION: The City does not object to the transfer of this Property into trust but does have a number of comments: a. Outlet Channel. An outlet channel which provides drainage for the region runs through the Property. Although there is an easement and cost sharing agreement relating to the outlet channel between the SMSC,City of Prior Lake,City of Shakopee and the Watershed District the easement does not appear to be recorded against the Property.An amendment to the easement correcting the legal description of the unrecorded easement is recorded. The SMSC should be required as part of this application to file the original easement with the County Recorder/Registrar of Titles, as applicable, of Scott County. The City is concerned that the transfer of the Property to trust will negatively affect the easement if (i) the easement is not recorded and (ii) the BIA does not accept the easement as part of the transfer of the Property into trust. The entire region relies on the easement for drainage and the City encourages the BIA to ensure the survival of the easement if it takes the Property into trust. b. Use of ProperM. The Property has been used as a natural area available to the citizens,including in particular the use of the Property as a YMCA camp for children, many of whom are from the inner-cities of the metropolitan area, who otherwise may not have access to natural areas. SMSC has used the facilities and natural areas for supporting various youth programs. The SMSC has verbalized its intent to continue the YMCA lease,however there is no assurance that such use will continue. The City requests that the BIA consider the importance of this natural area to all citizens and the impact if the SMSC changes the use of the Property. III. CONCERNS WITH RESPECT TO FUTURE APPLICATION: a. Cumulative Effect. The SMSC has actively been purchasing land within and surrounding the City of Prior Lake and transferring that property to trust. The cumulative effect of multiple transfers of property within and surrounding the City into trust is significant. The SMSC has indicated that it currently owns approximately 4122 acres in the Prior Lake/Shakopee area and that 1844 of those acres are held in trust. In Prior Lake,the amount is 1886 total acres owned of which 960 acres are in trust. The SMSC has informed the City of its intent to transfer all property it owns into trust. The continuation of trust transfers includes a substantial amount of property and will have an extensive impact on the City's tax revenue, planning, operations Regional Director, Midwest Regional Office U.S. Dept. of the Interior, Bureau of Indian Affairs February 10, 2015 Page 3 and ability to provide necessary services. The City requests that the BIA consider the cumulative impact of trust transfers on the City of Prior Lake as shown below: Trust Request Total Acres Total Acres in Total Acres Total Acres in Date / Name Owned (PL) Trust (PL) this Request Trust After This Request PL 1/20/15 1886 960 87 1047 YMCA The City appreciates the BIA's consideration of these matters and encourages the BIA to contact the City if it has additional questions. Respectfully submitted, Kenneth L. Hedberg Mayor,City of Prior Lake cc: Charlie Vig, Chair,SMSC ,.. --w. _. :u_.__�_�._ -„. ,.. _ _...�, _: _ � �F. � bye. •� �t�*; y � t •.:�m, ; •ri-�. �,w"a ^rn � , A� h�I�V� >,i ��41�gi� 1. . r all f Mariano a. i � a _ t ;�r ! /.. fir/ W•R- �v d' ! .,yy. * 7 YMCA ' zt z� �& ��� . �..�`.:- i' „r d °' .rte.` � ,'^ ,`:e' .'” .,t`,•','�r'z '` ' �,`_ .>t � ✓r�"a.3 b kF '� _ - r. .+ r r t SHAKOPEE MDEWAKANTON SIOUX COMMUNITY N Subject Parcel Mdewakanton Cab hd6 ka Parcel Fee to Trust Request SMSC Fee Land Plate 2 Subject Parcel Location SMSC Trust Land Source:SMSC Spatial Data,Scott County GIS Miles Non-SMSC Land 0 0.05 0.1 0.2 United States Department of the Interior BUREAU OF INDIAN AFFAIRS Midwest Regional Office Norman Pointe II TAKE PRIDE 5600 West American Boulevard,Suite 500 INAMERICA Bloomington,MN 55437 IN Rrpix Rar_a To: Division or Fee to Trust TR-4609-P5 NOTICE OF (NON-GAMING) LAND ACQUISITION APPLICATION Pursuant to the Code of Federal Regulations,Title 25,INDIANS,Part 151.10,notice is given of the application filed by the Shakopee Mdewakanton Sioux Community of Minnesota to have real property accepted"in trust"for said applicant by the United States of America. The determination whether to acquire this property"in trust"will be made in the exercise of discretionary authority which is vested in the Secretary of the Interior,or his authorized representative,U.S.Department of Interior. To assist us in the exercise of that discretion,we invite your comments on the proposed acquisition. In order for the Secretary to assess the impact of the removal of the subject property from the tax rolls,and if applicable to your organization,we also request that you provide the following information: (1) If known,the annual amount of property taxes currently levied on the subject property allocated to your organization; (2) Any special assessments,and amounts thereof,that are currently assessed against the property in support of your organization; (3) Any governmental services that are currently provided to the property by your organization;and (4) If subject to zoning,how the intended use is consistent or inconsistent with the zoning. We provide the following information regarding this application: Applicant Shakopee Mdewakanton Sioux Community of Minnesota Legal Land Description/Site Location: Parcel 1 (YMCA-80.34 acres): The South Half of the Northwest Quarter(S 1/2 NW 1/4)of Section 23,Township 115 North, Range 22 West, of the Fifth Principal Meridian, Scott County, Minnesota. (PID No. 259230100) AND The South 200 feet of the Bast 33 feet of the North Half of the Northwest Quarter(N1/2 NW 1/4)of Section 23,Township 115 North, Range 22 West, of the Fifth Principal Meridian, Scott County, Minnesota. (PID No.279230020) Parcel 2 (YMCA-7 acres): Outlot C,Titus lst Addition, according to the recorded plat thereof, and situate in Scott County, Minnesota.(PID No.250700330) Parcel 3(West M.azario-6 acres): That part of the North Half of the Northwest Quarter of Section 23,Township 115 North, Range 22 West of the 5th P.M., Scott County, Minnesota. (PID No. 279230017) Proiect Description/Proposed)rand Use: The Midwest Regional Office is under consideration of application for the transfer of real property held by the Shakopee Mdewakanton Sioux Community of Minnesota to be transferred in trust for the benefit of the Shakopee Mdewakanton Sioux Community of Minnesota. The subject parcels are contiguous to existing trust and reservation lands. Trust acquisition of this land will promote culturally based education activities for tribal members of the Shakopee Mdewakanton Sioux Community of Minnesota that involves the protection,development and preservation of property, wildlife and natural resources of the community. Natural areas are a diminishing resource within the County,and are vital to maintaining Dakota culture which is closely linked with the environment. As indicated above,the purpose for seeking your comments.regarding the proposed trust land acquisition is to obtain sufficient data that would enable an analysis of the potential impact on local/state government,which may result from the removal of the subject property from the tax roll and local jurisdiction. This notice does not constitute,or replace,a notice that might be issued for the purpose of compliance with the National Environmental Policy Act of 1969. Your written comments should be addressed to the Bureau of Indian Affairs office listed at the top of this notice,. Any comments received within thirty days of your receipt of this notice will be considered and made a part of our record. You may be granted one thirty day extension of time to furnish comments,provided you submit a written justification requesting such an extension with in thirty days of receipt of this letter. Additionally,copies of all comments will be provided to the applicant for a response. You will be notified of the decision to approve or deny the application. If any party receiving the enclosed notice is aware of additional governmental entities that may be affected by the subject acquisition,please forward a copy to said party. A copy of the application,excluding any documentation exempted under the Freedom of Information Act, is available for review at the above address. A request to make an appointment to review the application, or questions regarding the application,may be directed to Diane Baker,Supervisory Realty Specialist, Division of Fee to Trust,at(612)725-4586. Sincerely, r Regional Director cc: By Certified Mail—Return Receipt Requested To Interested Parties: Frank Boyles 9171 9690 0935 0036 0703 19 Prior Lake City Manager 4646 Dakota St. SE Prior Lake,MN 55372-1714 cc: Regular Mail Honorable Charlie Vig Chairman Shakopee Mdewakanton Sioux Community 1330 Sioux Trail NW Prior Lake,MN 55372 Mr. Stanley Ellison,Land Manager Shakopee Mdewakanton Sioux Community 2330 Sioux Trial NW Prior Lake,MN 55372 January 8, 2015 United States Department of the Interior Bureau of Indian Affairs Midwest Regional Office Attn: Regional Director 5600 West American Boulevard, Suite 500 Bloomington, Minnesota 55437 Re: Shakopee Mdewakanton Sioux Community Fee to Trust Application Dear Ms. Rosen: Pursuant to the Notice of Non-Gaming Land Acquisition Application("Application") dated December 18, 2014 (received by the County on December 22, 2014). Scott County submits this response to the request by the Shakopee Mdewakanton Sioux Community to have approximately 93.34 acres of land(Parcel ID Numbers 259230100, 279230020, 250700330, and 279230017), currently owned by SMSC, and placed in trust. In response to the specific requests within the Notice: • The three YMCA parcels (Parcel ID Numbers 259230100, 279230020,and 2507003302014)are currently exempt and the amount of property taxes levied on the Mazario parcel by Scott County in 2014 was$555.53. • Scott County does not have any special assessments currently assessed against the properties. • Scott County currently provides law enforcement services, correctional services, prosecutorial services, and transportation(roads and transit) services to the Subject Parcels. Many in coordination or conjunction with the City of Shakopee. • Scott County does not exercise land use or other zoning controls over the Subject Parcels,but does have some environmental regulatory function. If you require any clarification or information on these comments, please feel free to contact me at any time. Thank you for your timely consideration of these comments. Respectfully submitted, Gary L. Shelton,Administrator Scott County Minnesota SHAKOPEE January 8,2015 Diane K. Rosen, Regional Director United States Department of the Interior Bureau of Indian Affairs Midwest Regional Office Norman Point II 5600 West American Boulevard,Suite 500 Bloomington, MN 55437 Re:Application to place the YMCA property(PID Nos. 259230100 and 250720330)in trust for the Shakopee Mdewakanton Sioux Community(SMSC) Dear Ms. Rosen: The City received notice of this application on or about December 18, 2014. This letter is to inform you that the City of Shakopee does not object to,or have any specific comment on the proposed trust application at this time. i' Should you have any questions regarding this letter or related matters, please contact Acting City Administrator Kris Wilson at(952)233-9312. Sincerely, bl Mayor cc:Shakopee City Council COMMUNITY PRIDE SINCE 1857 1 �Hb9zii�'s'6 t��1 Sc t�tfl :¢.�9l alcbj�ec lulinnesota • 55379-1351 • 952-233-9300 FAX 952-233-3801 • ww w.ShakopeeMN.gov