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HomeMy WebLinkAbout7D Whitney-Credit River Township Annexation Report 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: JULY 16, 2018 AGENDA #: 7D PREPARED BY: CASEY MCCABE, COMMUNITY DEVELOPMENT DIRECTOR PRESENTED BY: CASEY MCCABE AGENDA ITEM: CONSIDER APPROVAL OF AN ORDINANCE ANNEXING APPROXIMATELY 9.35 ACRES OF PROPERTY IN SECTION 7, CREDIT RIVER TOWNSHIP PURSUANT TO MINNESOTA STATUTES 414.033, SUBD. 2 (3) AND A RESOLUTION ADOPTING THE SUMMARY OF ORDINANCE AND ORDERING THE PUBLICATION OF SAID SUMMARY DISCUSSION: Introduction The purpose of this agenda item is to consider approving an application to annex approximately 9.35 acres of land to the City of Prior Lake from Credit River Township. The subject property is located north of CSAH 21 and east of 170th Street East, adjacent to the Welcome Avenue Industrial Park. History Leira Properties LLC has petitioned the City of Prior Lake to annex approximately 9.35 acres of land in Section 7 of Credit River Township pursuant to Minnesota Statutes 414.033, Subd. 2 (3). The property is adjacent to the City of Prior Lake southeastern limits and generally in the northwest corner of Credit River Township. Current Circumstances Under Minnesota Statutes 414.033, Subdivision 2 (3), a municipal council may by ordinance declare land annexed to the municipality if : 1) the land abuts the municipality; 2) the area to be annexed is 120 acres or less, 3) the area to be annexed is not presently served by public wastewater facilities or public wastewater facilities are not otherwise available, and 4) the municipality receives a petition for annexation from all the property owners of the land. Except as provided for by an orderly annexation agreement, (no orderly annexation agreement exists for this property) this clause may not be used to annex any property contiguous to any property previously annexed under this clause within the preceding 12 months if the property is owned by the same owners and annexation would cumulatively exceed 120 acres. The method of annexation by ordinance does not require approval of the township or Chief Administrative Law Judge but does require a public hearing by the City Council. City staff has provided 30-days written notice by certified mail to the Credit River Township Board and to all owners of land adjacent to the property in question. A draft copy of this report was submitted to the Credit River Township Board for information on Friday, July 6, 2018. During the application review, city staff and Annexation Task Force members identified a few potential issues that should be addressed prior to making a recommendation to the City Council related to the annexation request. The primary issues related to future intersection improvements at CH21/Revere Avenue, including the future extension of Revere Avenue to 170th Street; future land use and zoning designations; and wellhead protection area and timing of the utility connections. The City Attorney has prepared the attached Agreement for Annexation of Whitney Property in Credit River Township to address the comments raised by city staff and Annexation Task Force members. It is staff’s recommendation the City Council approve the annexation of this parcel conditioned upon the property owner entering into the Agreement for Annexation with the City of Prior Lake. The Prior Lake Economic Development Authority (EDA) reviewed the annexation request during their July 9, 2018 meeting and by a vote of 3-0-2, the EDA, “recommends that the City Council approve the annexation request, including recommended amendments, if any, to the agreement for annexation subject to the execution of that agreement by the property owner prior to the public hearing.” Conclusion The property in question, which is in the Prior Lake – Savage School District and is occupied by an approximate 5,000 square foot metal building, meets the criteria for annexation under Minnesota Statutes Section 414.033, Subdivision 2 (3). The land abuts Prior Lake, the area to be annexed is less than 120 acres, the area to be annexed is not presently served by public wastewater facilities and public wastewater facilities are not otherwise available, and the City of Prior Lake received a petition for annexation from the owner of 100% of the property. There are several reasons the City Council should consider approval of the annexation request, including: ➢ An opportunity to secure right-of-way for a future extension of Revere Avenue to 170th street; ➢ The ability to ensure protections for future development in the wellhead protection area; ➢ The diversification of the city’s tax base through additional commercial development opportunities; ➢ The ability to enhance the entrance to the city through commercial development and redevelopment; and ➢ Capitalizing on the investment in public utilities available to serve this area. Right-of-Way: The intersection of Revere Avenue (CH87) and CH21 has long been identified by city and county officials as an intersection in need of functional and safety improvements. The City of Prior Lake has been collecting an escrow from developments within the Deerfield Business Park where developers provide a payment, referred to as ‘CH21 Turn Lanes Construction Charge’, for future improvements to the CH21/87 intersection. The Deerfield Business Park share was determined as a 50% share of the estimated $250,000 cost of the CH21/87 turn lane improvements. To date, the city has collected approximately $100,000 for future improvements to this intersection. As the city’s industrial park grows and the annexed land to the south on Revere Avenue develops, this intersection will be a key egress and access point on CH21 when first entering the city. Wellhead Protection: A Wellhead Protection Area (WHPA) is the Minnesota Department of Health approved surface and subsurface area surrounding a public water supply well or well field that supplies a public water system, through which contaminants are likely to move toward and reach the well or well field. The subject site is within a City of Prior Lake WHPA. The current and future uses of the site raises concerns related to groundwater and ultimately drinking water contamination. If this property were annexed, Prior Lake city code, public works design manual and zoning ordinances would alleviate some of the concern surrounding development in the WHPA with the regulations related to permitted and conditional uses, imperious surface requirements, storm water controls, etc. Since such controls will ultimately impact Prior Lake today and as a city of 38,000 in the future, it is desirable that the city regulate this important public health issue. Economic Development: The subject property would provide additional commercial property, which is needed in the City of Prior Lake. Prior Lake has approximately 35 acres of vacant shovel-ready commercial property and approximately 25 acres of vacant shovel-ready business park and industrial property. According to the 2017 Commercial and Industrial Demand Analysis completed for Scott County by Maxfield Research, Prior Lake has a demand for an additional 1.3 million square feet of retail, office and industrial development by the year 2040; this level of development will require approximately 140 acres of land to accommodate the projected demand. This subject site is contiguous to both the Welcome Avenue Industrial and Deerfield Business Parks and a logical addition to the two. Entry to City: The site is located along the CH21 corridor and serves as a gateway into the city. The addition of this parcel to the City of Prior Lake would provide the city an opportunity to coordinate the types of land uses and architectural standards through the zoning ordinance to ensure a high quality commercial development as a focal point as residents and visitors enter and leave the community. Once annexation takes place, if the EDA and Council find it appropriate, the city may want to focus on assisting with the redevelopment of commercial/industrial properties near the CH21/Revere Avenue intersection. Available Utilities: The city has water, sanitary sewer and storm sewer services available within approximately 200 feet of the subject property. Utilities were installed in the Welcome Avenue area in recent years and the utilities were sized in such a way that the city has capacity to serve this property. Costs associated with connecting the site to city services will be the responsibility of the property owner or future developer. Connection to city services would be required prior to any further development of the property. Zoning: This property is not included on the City’s Comprehensive Land Use Plan Map or Zoning Map. If the City Council approves the annexation, the property will automatically be classified as R-1, Low Density Residential on the City Zoning Map in conformance with Subsection 1101.801 of the city code. Eventually, either the City Council or the petitioner must initiate an amendment to the Comprehensive Plan Map to include this area. The Agreement for Annexation addresses the appropriate land uses for this property. JPA: The city and township have enjoyed years of cooperation in numerous venues, perhaps most significant is fire service. This positive relationship should continue. City staff and Annexation Task Force members have discussed the option of entering in to a Joint Powers Agreement (JPA) with Credit River ISSUES: Township, wherein the City of Prior Lake would provide sewer and water services to this parcel, and potentially additional parcels, within the township for a fee. The thought was the city could secure the necessary right-of-way for a future Revere Avenue extension from CH21 to 170th Street, agree with the township on zoning and land use, as well as ensure the WHPA is monitored and the property would remain in Credit River Township. The staff does not believe that a JPA would adequately address the issues outlined above for the following reasons. The proposed intersection improvement will be critical in this area. The city has greater resources to assure that this important road improvement can take place when needed. From an economic development perspective, the JPA allows the property to remain in Credit River Township relying upon contractual public utilities from the city. The city has taken the position that city utilities will only be extended to property which is, or will be, within the city’s corporate limits; to do otherwise would not be equitable to Prior Lake residents whose property taxes, sewer and water rates and special assessments support all kinds of city infrastructure. Residents of other communities, understandably, do not provide such financial support. The city’s utilities are approximately 200 feet away from this property and are most appropriate to serve this area, rather than extending services from far away which is likely to be both expensive and protracted. This property should be zoned in a fashion consistent with the surrounding city property both for aesthetic, planning and financial reasons. For these reasons, neither the staff nor Annexation Task Force members supported the JPA option. It would be understandable for the township to be concerned about this annexation leading to additional property annexation by the city. While the action of a present council cannot bind a future council, it seems likely that the city’s only interest for future annexation would be the parcels to the immediate north of this property, totaling about 38 acres, for many of the same reasons articulated above. FINANCIAL IMPACT: Approval of the annexation will allow the development of the property within the City limits, which will increase the City tax base. Under Minnesota Statutes 414.033, Subdivision 12, the property will also be subject to tax feathering, as follows: Subd. 12.Property taxes. When a municipality annexes land under subdivision 2, clause (2), (3), or (4), property taxes payable on the annexed land shall continue to be paid to the affected town or towns for the year in which the annexation becomes effective. If the annexation becomes effective on or before August 1 of a levy year, the municipality may levy on the annexed area beginning with that same levy year. If the annexation becomes effective after August 1 of a levy year, the town may continue to levy on the annexed area for that levy year, and the municipality may not levy on the annexed area until the following levy year. In addition, pursuant to Minnesota Statutes § 414.036, staff is proposing that with respect to the property taxes payable on the subject property, the City of Prior Lake shall pay Credit River Township two times the amount of taxes that the township levied against the subject property in 2018, which totals $765.18. Both measures are intended to mitigate any financial impacts that this annexation could have on the township. ALTERNATIVES: 1. Motion and second approving an ordinance annexing the property, subject to the property owner entering into the Agreement for Annexation of Whitney Property in Credit River Township prior to the public hearing. 2. Motion and second authorizing the Mayor and City Manager to enter into the Agreement for Annexation of Whitney Property in Credit River Township and approving a resolution adopting the summary of ordinance and ordering the publication of said summary. 3. Motion and second to deny the ordinance annexing the property. 4. Motion and a second to table action and provide further direction to city staff. RECOMMENDED MOTION: ATTACHMENTS: Staff Recommends Alternatives Number 1 and 2. 1. Location Map 2. Agreement for Annexation 3. Minnesota Statutes 414.033 1 CITY OF PRIOR LAKE ORDINANCE NO. 118-____ AN ORDINANCE OF THE CITY OF PRIOR LAKE, MINNESOTA ANNEXING LAND LOCATED IN CREDIT RIVER TOWNSHIP, SCOTT COUNTY, MINNESOTA PURSUANT TO MINNESOTA STATUTES § 414.033 SUBDIVISION 2(3), PERMITTING ANNEXATION BY ORDINANCE WHEREAS, a petition signed by the sole property owner, requesting that property legally described herein be annexed to the City of Prior Lake, Minnesota, was duly presented to the Council of the City of Prior Lake on the 16th day of July 2018; and WHEREAS, said property is unincorporated and abuts the City of Prior Lake on its southeastern boundary; is less than 120 acres; is not presently served by public sewer facilities or public sewer facilities are not otherwise available; and WHEREAS, said property is not located within a flood plain or shoreland area; and WHEREAS, said property is currently agricultural and annexation is requested to facilitate the extension of city services for the urban commercial/industrial development of the property; and WHEREAS, the City of Prior Lake held a public hearing pursuant to Minnesota Statutes § 414.033 Subd. 2b, on July 16, 2018, following thirty (30) days written notice by certified mail to the Town of Credit River (‘Town’) and to all landowners within and contiguous to the area legally described (herein or attached exhibit), to be annexed; and WHEREAS, provisions of Minnesota Statutes § 414.033 Subd. 13 are not applicable in that there will be no change in the electric utility service provider resulting from the annexation of the territory to the municipality. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PRIOR LAKE HEREBY ORDAINS AS FOLLOWS: 1. The City Council hereby determines that the property as hereinafter described abuts the city limits and is or is about to become urban or suburban in nature in that commercial or industrial uses being proposed for said property, the construction of which requires or will need city services, including public sewer facilities. 2. None of the property is now included within the limits of any city, or in any area that has already been designated for orderly annexation pursuant to Minnesota Statute § 414.0325. 3. The corporate limits of the City of Prior Lake, Minnesota, are hereby extended to include the following described property, said land abutting the City of Prior Lake and being 120 acres or less in area, and is not presently served by public sewer facilities or public sewer facilities are 4646 Dakota Street SE Prior Lake, MN 55372 2 not otherwise available, and the City having received a petition for annexation from all the property owners of the land, to wit: The West 919.00 feet (as measured at right angles) of that part of the North half of the Northwest Quarter (N ½ of NW ¼) of Section 7, Township 114, Range 21, Scott County, Minnesota, lying North of the Northerly right of way line of the Chicago, Milwaukee and St. Paul Railway Company, Scott County, Minnesota. (PID 049070010) The above described property consists of a total of 10 acres, more or less. Copies of the corporate boundary map showing the property to be annexed and its relationship to the corporate boundaries and all appropriate plat maps are attached as Exhibit A. 4. The City of Prior Lake, pursuant to Minnesota Statutes § 414.036, that with respect to the property taxes payable on the area legally described herein, hereby annexed, shall pay to the Town of Credit River as follows: a. Two times the amount in taxes that the Township levied against the property in 2018, the year of annexation. b. The City shall remit payment in two equal payments, the first payment is due by December 15th in the year the property is annexed, and the second payment is due by December 15th in the year following annexation. c. Property ID 049070010 had Town taxes of $382.59 payable in 2018; two times that amount equals $765.18, to be paid in two equal payments of $382.59 each. 5. That pursuant to Minnesota Statutes § 414.036 with respect to any special assessments assigned by the Town to the annexed property and any portion of debt incurred by the Town prior to the annexation and attributable to the property to be annexed, but for which no special assessments are outstanding, for the area legally described herein there are no special assessments or debt incurred by the Town of Credit River on the subject for which reimbursement is required. 6. Following the property owner entering into the Agreement for Annexation of Whitney Property Credit River Township, the City Manager of the City of Prior Lake is hereby authorized and directed to file a copy of this Ordinance with the Municipal Boundary Adj ustment Unit of the Office of Administrative Hearings, the Minnesota Secretary of State, the Scott County Auditor, and the Credit River Township Clerk. 7. That this Ordinance shall be in full force and effect and final upon the date this Ordinance is approved by the Office of Administrative Hearings. Passed and adopted by the Prior Lake City Council this 16th day of July 2018. ATTEST: City Manager Mayor A summary of this ordinance was published in the Prior Lake American on the 21st day of July 2018. 3 EXHIBIT A 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 18-___ A RESOLUTION APPROVING THE SUMMARY OF ORDINANCE 118-_____ AND ORDERING THE PUBLICATION OF SAID SUMMARY Motion By: Second By: WHEREAS, In accordance with Minnesota Statute, the City Council held a public hearing regarding the petition from all property owners, requesting that PID 049070010, totaling approximately 9.35 acres in Credit River Township be annexed to the City of Prior Lake on July 16, 2018; and WHEREAS, The City Council has considered the petition and city staff reports pertaining to the annexation; and WHEREAS, On July 16, 2018, the City Council adopted Ordinance 118-____ annexing approximately 9.35 acres of land on the southeastern boundary of the City of Prior Lake to facilitate the extension of city services for the commercial/industrial development of the property; and WHEREAS, Minnesota Statutes requires publication of an Ordinance in the official newspaper before it becomes effective; and WHEREAS, WHEREAS, Minnesota Statutes also allows the publication of a summary of an ordinance if the City Council finds that the summary is an accurate representation of the Ordinance; and The City Council desires to publish a summary of the ordinance annexing PID 049070010, totaling approximately 9.35 acres in Credit River Township, and has determined the publication of a summary of this ordinance will meet the intent of the statute. 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. Ordinance No. 118-____ is lengthy. 3. The text of summary of Ordinance No. 118-____, attached hereto as Exhibit A, conforms to M.S. § 331A.01, Subd. 10, and is approved, and publication of the title and summary of the Ordinance will clearly inform the public of the intent and effect of the Ordinance. 4. The title and summary shall be published once in the Prior Lake American in a body type no smaller than brevier or eight-point type. 5. A complete text of the newly amended City Code will be available for inspection at City Hall or in the Document Center on the City of Prior Lake website after July 17, 2018. 2 Passed and adopted by the Prior Lake City Council this 16th day of July 2018 VOTE Briggs McGuire Thompson Braid Burkart Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Frank Boyles, City Manager 3 Exhibit A SUMMARY ORDINANCE NO. 118-___ AN ORDINANCE OF THE CITY OF PRIOR LAKE, MINNESOTA ANNEXING LAND LOCATED IN CREDIT RIVER TOWNSHIP, SCOTT COUNTY, MINNESOTA PURSUANT TO MINNESOTA STATUTES § 414.033 SUBDIVISION 2(3), PERMITTING ANNEXATION BY ORDINANCE The following is only a summary of Ordinance No. 118-____. The full text will available for public inspection after July 17, 2018 by any person during regular office hours at City Hall or in the Document Center on the City of Prior Lake Website. SUMMARY: The corporate limits of the City of Prior Lake, Minnesota, are hereby extended to include the following described property, said land abutting the City of Prior Lake and being 120 acres or less in area, and is not presently served by public sewer facilities or public sewer facilities are not otherwise a vailable, and the City having received a petition for annexation from all the property owners of the land, to wit: The West 919.00 feet (as measured at right angles) of that part of the North half of the Northwest Quarter (N ½ of NW ¼) of Section 7, Township 114, Range 21, Scott County, Minnesota, lying North of the Northerly right of way line of the Chicago, Milwaukee and St. Paul Railway Company. (PID 049070010) This ordinance shall become effective from and after its passage and publication. Passed by the City Council of the City of Prior Lake this 16th day of July 2018. ATTEST: _________________________ __________________________ Frank Boyles, City Manager Kirt Briggs, Mayor Summary Ordinance to be published in the Prior Lake American on the 21st day of July 2018. ADELMANN ST SE EA G L E C R E E K A V S EWELCOME AV SEScott County GIS Ü 6025 170th Street East Annexation Location Map UP PER PR IO R LA K EGD(90 4) SPR I NG L AK EGD(91 2.8 ) LO WER P RI O R LA KEGD(90 4) MY ST ICLAK ENE BLI N DLAK ERD(94 8.7 ) AR TI CLAK ENE(90 6.7 ) MA RK LE YLAK ERD( ) HO WAR D LA KENE(95 7.3 ) CR YST AL LA K ENE(94 3.3 ) RI CE L AK ENE(94 5) CLE AR Y LA KENE CA MP BE LLLAK ENE(N ot E stab. ) Scott County GIS SUBJECT PROPERTY SUBJECTPROPERTY