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Home My WebLink About9A Annexation Report 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: OCTOBER 24, 2016 AGENDA #: 9A PREPARED BY: DAN ROGNESS, COMMUNITY & ECON. DEVELOPMENT DIRECTOR PRESENTER: DAN ROGNESS AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION ANNEXING PROPERTY FROM SPRING LAKE TOWNSHIP INTO THE CITY OF PRIOR LAKE BY ORDERLY ANNEXATION (DOCKET #OA-967) DISCUSSION: Introduction The purpose of this agenda item is to consider annexing two sub-areas into the City of Prior Lake from Spring Lake Township. The subject land is lo- cated within Area 8.1 and 10.3. Land uses in Area 8.1 include large residen- tial lots and agricultural land (7 parcels), and uses in Area 10.3 include a large-lot residential subdivision (23 parcels). History The City of Prior Lake and Spring Lake Township entered into an Orderly An- nexation Agreement in 1972. Areas within the Orderly Annexation Area were not subject to any annexation schedule. Township officials and prop- erty owners in the area designated for Orderly Annexation wanted predicta- bility regarding when their property would come into the City. In 2003, the City and Township terminated the 1972 Orderly Annexation Agreement and entered into a new Orderly Annexation Agreement (“OAA” or “Agreement”). The 2003 OAA divides the land in the Orderly Annexation Area, approxi- mately 3,000 acres, into Sub-Areas and each Sub-Area has a corresponding year when annexation is anticipated (see 2003 map in Attachment 1). 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. Other sub-areas were scheduled in subsequent years, but since sewer and water were not within 150 feet of any boundary, annexations were 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 OAA provides for exceptions 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 2 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 Township’s need for predictability about when to expect the annexation of a particular sub-area as well as the City’s concern about when sewer and water would be extended subject to unforeseen (market) conditions. Most recently in 2012, the City annexed Areas 6.1 (80 acres), Area 6.2 (180 acres) and Area 8.3 (50 acres). Current Circumstances The city’s Annexation Committee is recommending the following two sub-ar- eas be forwarded to the City Council for review and action: 1. Area 8.1 – Approximately 179 acres located west of CSAH 17 and north of 170th Street; this area has 7 parcels. 2. Area 10.3 – Approximately 68 acres located east of CSAH 17 along 165th Street; this area has 23 parcels. City staff sent a memo to the township and a letter to all property owners within Areas 8.1 and 10.3 (see Attachment 2). On Thursday, October 13, Rogness attended a Spring Lake Town Board meeting that included a dis- cussion of the City’s proposed annexation. The Board directed its attorney to draft a letter to the City Council requesting the following: (1) do not annex Area 10.3 until 2018, which is the 8-year timeline; (2) do not annex Area 8.1 since the City and Township will be renegotiating the OAA in 2017; and/or (3) allow only the southern portion of Area 8.1 to be annexed if the City decides to annex Area 8.1. The Township’s letter is included as Attachment 3, in- cluding a petition from residents in the Autumn Acres subdivision, Area 10.3. The properties are subject to annexation by resolution. The OAA requires 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 The Orderly Annexation Agreement also requires that sewer and water ser- vice be located within 150’ of any boundary of an Area to be annexed. Ap- proval of the resolution is consistent with the Orderly Annexation Agreement. If the Council approves the resolution to annex Areas 8.1 and 10.3, staff will continue to communicate the process with all property owners in these areas. Pending the outcome of this proposed annexation, Katy Gehler will present to the City Council a road maintenance agreement with the Township based on those areas being annexed at a subsequent meeting. ISSUES: The corresponding city property tax will become effective in 2018, which will approximately double the existing township tax (assuming no market value increase). Upon annexation, all property will automatically be zoned R-1. 3 FINANCIAL IMPACT: The Orderly Annexation Agreement has three provisions relating to property tax phasing. However, that provision does not apply to any sub-areas that are subject to annexation in 2008 or after. For those sub-areas 2008, 2009, 2010, etc., the payment from the city to the township shall be two times the amount of taxes that Spring Lake levied against the property in the preceding year of annexation. In this case, the total township tax for all 30 parcels pay- able 2016 is approximately $18,000, resulting in a total payment by the city over two years at nearly $36,000 (see Attachment 4). Costs associated with new streets, and connecting sites to municipal sewer and water, will be the responsibility of the property owners and city using the city’s assessment policy. ALTERNATIVES: 1. Motion and a second to approve a Resolution annexing property from Spring Lake Township into the City of Prior Lake by Orderly Annexation, in- cluding Areas 8.1 and 10.3, or as further modified by the Council. 2. Motion and a second to deny approval of a Resolution annexing property into the City of Prior Lake. 3. Motion and a second to table action and direct staff to provide additional information. RECOMMENDED MOTION: Alternative #1. ATTACHMENTS: 1. Original annexation map (2003 OAA) 2. Memo to the Township, including a letter sent to all property owners 3. Letter from Spring Lake Township (10/18/16), including petition from residents in Area 10.3 4. Township property taxes in Areas 8.1 and 10.3 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 16-XXX A RESOLUTION ANNEXING PROPERTY FROM SPRING LAKE TOWNSHIP INTO THE CITY OF PRIOR LAKE BY ORDERLY ANNEXATION (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 (“OAA”); and WHEREAS, Paragraph 5 of the OAA identifies and designates land within the Orderly Annexation Area (designated as “Sub-Areas”) by number and provides for the annexation of sub-areas in or after a given year subject to the availability of sewer and water services; and WHEREAS, City sewer and water is now available to Sub-Areas 8.1 and 10.3 making annexation appropriate pursuant to the OAA and Minnesota Statutes 414.0325; and WHEREAS, Pursuant to Paragraph 5.2 of the OAA, 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; and WHEREAS, Pursuant to Paragraph 5.2 of the OAA, 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; and WHEREAS, Tax reimbursement payments will be made by the City to the Township in accordance with Paragraph 6 of the OAA; and WHEREAS, City Code Subsection 1101.801 states “Land areas which may be added to the City by annexation, merger or other means shall be classified as R-1 (Low Density Residential) on the City Zoning Map upon annexation”; and WHEREAS, 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 City of Prior Lake approves the annexation of Sub-Areas 8.1 and 10.3 from Spring Lake Township into the City of Prior Lake. 3. The staff is hereby directed to forward this resolution to Minnesota Municipal Boundary Adjustment for review and comment and to order the annexation within 30 days. 2 4. Pursuant to City Code Subsection 1101.801 Sub-Areas 8.1 and 10.3 shall be zoned R-1 (Low Density Residential) upon annexation. This designation shall be in place until such time as the owner or developer of any of the annexed property makes application to request Comprehensive Plan Land Use Guiding and Zoning District designation. PASSED AND ADOPTED THIS 24th DAY OF OCTOBER, 2016 VOTE Hedberg Keeney McGuire Morton Thompson Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ ______________________________ Frank Boyles, City Manager SAND C REEK TO W NSHIP SPRING LAKE TOW NSHIP SHAKOPEE Lower Prior Lake Upper Prior Lake Spring Lake Howard Lake Campbell Lake Rice Lake Cleary Lake Spring Lake Regional Park Cleary Lake Regional Park S t e m m e r P r o p e r t y PRIOR LAKE 7 9 LOUISVILLE TOWNSHIP"!14 "!1 5 "!1 5 "!1 7 %g282 %g13 %g13 "!8 2 "!4 2 "!8 3 "!2 1 "!2 1 %g13 "!6 8 2008 8.12010 10.1 2014 14.2 2006 6.2 2006 6.1 2004 4.4 2012 12.1 2024 24.12024 24.2 2004 4.1 2004 4.2 2008 8.3 2004 4.3 2014 14.1 2008 8.2 2007 7.1 2010 10.2 2010 10.3 Urban Expansion Ar ea Not Included in Annexation 2024 24.3 2003 3.1 Township Boundary Township Parcels Property Not Included in Annexation Area Park / Recreation Area SMSC Property City of Prior Lake Annexation Areas 2004 2006 2008 2012 2024 2007 2014 2010 2003 Year of Proposed Annexation Corresponding Section of Annex. Agreement City of Prior Lake Minnesota 2003 N EW S PROPOSED ANNEXATION 1200 0 1200 Feet X:\Engineering\Annex\2003-annex-agreement.apr June 2003 This drawing is neither a legally recorded map nor a survey and is not intended to be used as one. This drawing is a compilation of records, information and data from various city, county and state offices and other sources. This document should be used for reference only. No representation is made that features presented accurately reflect true location. The City of Prior Lake, or any other entity from which data was obtained, assumes no liability for any errors or omissions herein. If discrepancies are found, please contact the City of Prior Lake. PRI OR LAKE / SPRI NG LAKE ANNEXATI ON EXHIBIT 2