HomeMy WebLinkAbout9A Four Corners South Fee To Trust Report
Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com
4646 Dakota Street SE
Prior Lake, MN 55372
CITY COUNCIL AGENDA REPORT
MEETING DATE: SEPTEMBER 04, 2018
AGENDA #: 9A
PREPARED BY: FRANK BOYLES, CITY MANAGER
PRESENTED BY: FRANK BOYLES
AGENDA ITEM:
CONSIDER APPROVAL OF A RESPONSE TO THE DEPARTMENT OF
THE INTERIOR, BUREAU OF INDIAN AFFAIRS REGARDING THE
PROPOSED FEE TO TRUST APPLICATION KNOWN AS FOUR
CORNERS SOUTH
GOAL AREA
AND
OBJECTIVE:
Desirable and Sustainable Development
1. Intentional Land Use Planning that Facilitates Commercial
Development for an Expanded Taxbase.
DISCUSSION: Introduction
The purpose of this agenda item is to request city council approval of a
response letter to the Bureau of Indian Affairs regarding four parcels known
as Four Corners South.
History
The Shakopee Mdewakanton Sioux Community (SMSC) has acquired fee
title to 50.63 acres in Prior Lake: PID 254340010, 259280110, 254340020
and 254340021.
A copy of the SMSC Application to the Bureau of Indian Affairs to place this
property in trust was previously shared with members of the city council and
is also attached herewith.
Since the SMSC is seeking to place these parcels in Trust with the Federal
Government the Bureau of Indian Affairs (BIA) is requesting impact
information from the city. Impact upon local government is one of seven
criteria the BIA examines prior to deciding whether to place land into trust.
On June 29, 2018, the United States Department of the Interior, Bureau of
Indian Affairs (BIA) sent a “Notice of (non-gaming) Land Acquisition
Application” to Scott County, Minnesota Department of Transportation, the
Governor’s Office, and the SMSC. On July 24, 2018, I sent a letter
requesting a 30-day extension which the BIA accepted confirming that our
response would be due on September 14, 2018. Our next meeting is
September 17, 2018, so tonight is the last opportunity for city council input
unless a special council meeting is scheduled.
Current Circumstances
The Four Corners South application for Fee to Trust involves 50.63 acres
PID 254340010, 259280110, 254340020 and 254340021 located in the City
of Prior Lake.
2
This property is located 2303 140th Street NW (PID 254340010 and
259280110), 14082 Wilds Path NW (254340020 and 254340021).
The four parcels are depicted on the map attached to the SMSC application.
They include three vacant parcels, one at the southwest corner of CR42 and
CR83 and two on the southeast side. Also included is the convenience store
originally developed by Kwik Trip and more recently purchased by the
SMSC.
The specific information sought by the BIA includes:
• Property Taxes. The property taxes levied by the City of Prior Lake
on these parcel for 2017:
Parcel # 2017
254340010 $8,000.34
259280110 $7,688.52
254340020 $5,650.61
254340021 $1,205.76
• Assessments. There are no existing assessments on these
properties.
• Services. The City provides all police services, joint powers
assistance for fire services sewer, water and storm water facilities to
these properties.
Zoning. Parcel 254340010 is zoned as C-2 (General Business),
259280110 is zoned for A (Agricultural), 254340020 is zoned for C-
2 and 254340021 is also zoned for C-2.
• The Agricultural Use District is to protect existing agricultural
investments until such time as public utilities may be extended and
there is a need for additional urban development. It is also intended
to provide for larger lots to ensure that the feasibility of future urban
development is not compromised.
• The General Business Use District as the name implies is for
business uses as specified in City Code Section 1102.1101 and
Subsection 1102.1300. The two sections set forth a considerable
number of eligible business uses.
Conclusion
The staff has prepared the attached draft response for the city council to
approve or amend if desired.
ISSUES: The draft responses prepared by the staff are responsive to the information
requested by the BIA. The response also addresses the following:
3
1. The Tribe will work with the county for any additional right of way
acquisition required.
2. For the Shamrock parcel, the Tribe intends to utilize city trunk sewer
and water lines to serve this property and will pay city related
development fees estimated to be $245,000.
3. For the O’Loughlin parcel the Tribe will evaluate all options and may
decide to use city sewer and water or its own.
4. The Tribe may construct a trail along Wild’s Path NW to County Road
42.
5. Wild’s Path will be jointly maintained by the City and Tribe under the
terms of an existing or yet to be written maintenance agreement
which would include both the street and the storm water pond.
6. The Meadow View Neighborhood on the west of County Road 83 has
only one way in and out. The Tribe intends to extend Brookmere
Boulevard to provide an outlet at County Road 83 and will work with
the city to provide appropriate screening between the residential and
commercial properties.
7. The office space to be built on Four Corners would be available for
lease by both Tribal and non-Tribal. The staff had sought a revision
in the application that would limit the lease to members of the Tribe
since that appeared to be the stated need. The Business Council
elected not to make that change and the language in the proposed
letter to the BIA sets forth the city’s position.
FINANCIAL
IMPACT:
The commitments proposed above will help utilize already installed city
infrastructure. The city receives annual contributions from the city to defray
many of our costs associated with the provision of police services. However,
if non-Tribal Businesses are allowed to lease office space on these
properties, the city will be at a competitive disadvantage as we must comply
with state laws with respect to calculations of property value and taxation,
but the Tribe does not.
ALTERNATIVES: 1) Motion and second to approve the city’s response regarding the Four
Corners South application either as proposed or as modified by the city
council.
2) Take other action as appropriate.
RECOMMENDED
MOTION:
Alternative 1.
Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com
4646 Dakota Street SE
Prior Lake, MN 55372
September 5, 2018
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 – Four Corners
South
Pursuant to the Notice of Non-Gaming Land Acquisition Application (“Application”) for the Four
Corners South Parcels 254340010, 259280110, 254340020 and 254340021 dated June 29, 2018
and the 30-day extension invoked by the City on July 24, 2018, the City of Prior Lake submits the
following response no later than September 14, 2018:
I. INFORMATION REQUESTED BY BIA:
In answer to specific questions asked by the BIA in the notice dated June 29, 2018:
a. Property Taxes. The property taxes levied by the City of Prior Lake on these parcels for
2017:
Parcel # 2017
254340010 $8,000.34
259280110 $7,688.52
254340020 $5,650.61
254340021 $1,205.76
b. Assessments. There are no existing assessments on this property.
c. Services. The City provides all police services and joint powers assistance for fire
services to this property.
d. Zoning. Parcel 254340010 (Kwik Trip), 254340020 (Shamrock) and 254340021
(Shamrock) are zoned C-2 General Business Use District which includes most business
uses found in an urban city. Parcel 259280110 (O’Laughlin) is zoned A Agricultural Use
District which reserves the land for agricultural uses until and if rezoned to another urban
development use.
Regional Director, Midwest Regional Office
U.S. Dept. of the Interior, Bureau of Indian Affairs
____________________________
Page 2
II.SEWER, WATER AND STORM WATER UTILITIES AND STREETS:
City utilities are installed adjacent to the subject parcels so the city made an
investment in these parcels which should be reimbursed. The SMSC and City have
agreed that the following will occur with respect to the utilities:
1.The Tribe will work with Scott County for any additional right of way acquisition
required.
2.For the Shamrock parcels (254340020 & 254340021), the Tribe intends to utilize
city trunk sewer and waterlines to serve this property and will pay city related
development fees estimated at $245,000.
3.For the O’Laughlin parcel (259280110) the Tribe will evaluate all options and may
decide to use city sewer and water or it’s own.
4.The Tribe may construct a trail along Wild’s Path NW to County Road 42.
5.Wild’s Path will be jointly maintained by the city and tribe under a yet to be written
maintenance agreement which will include both street and storm water pond.
6.The Meadow View Neighborhood on the west of County Road 83 has only one
way in and out. The Tribe intends to extend Brookmire Boulavard to provide an
outlet at County Road 83 and will work with the city to provide appropriate
screening between the residential and commercial properties.
III.POSITION WITH RESPECT TO THIS APPLICATION:
The City supports this transfer of this Property into trust for the following reasons:
a.The application as submitted provides for the lease of commercial building space to
any individual, partnership or corporation. We hold no objection to this application so
long as the Tribe accomplishes 1 through 6 as set forth above and is focused upon
leasing to Tribal owned commercial business only.
Should non-Tribal businesses be included, while providing revenue diversification for
the SMSC, these non-Tribal businesses would have less interest in occupying adjacent
non-Trust land within the city. This would create an economic advantage for the SMSC
at the economic expense of the adjacent municipality in pursuing non-Tribal
commercial business diversification on taxable properties.
Thank you for consideration of our comments and please contact me if there are any
questions.
Regional Director, Midwest Regional Office
U.S. Dept. of the Interior, Bureau of Indian Affairs
____________________________
Page 3
Sincerely,
Kirt Briggs
Mayor, City of Prior Lake
cc: City Council Members
Business Council Members
Tribal Administrator
WRITTEN REQUEST FOR
TRUST ACQUISITION
FOUR CORNERS SOUTH
The Shakopee Mdewakanton Sioux Community submits this written request to the United
States, Secretary of the Interior, to acquire fee land owned by the Community to be held in
trust for the Community and to declare such trust land a part of the Shakopee Mdewakanton
Sioux Community’s Reservation.
November 2017
TABLE OF CONTENTS
1. INTENT OF APPLICATION ......................................................................................... 1
1.1. INTRODUCTION ............................................................................................................ 1
1.2. REQUEST FOR TRUST ACQUISITION ............................................................................. 1
2. DESCRIPTION OF LAND ............................................................................................. 1
2.1. TABLE 1, FOUR CORNERS SOUTH PARCELS INFORMATION........................................... 1
3. STATUTORY AUTHORITY FOR THE ACQUISITION .......................................... 2
3.1. STATUTORY AUTHORITY ............................................................................................. 2
4. NEED OF THE TRIBE FOR THE ADDITIONAL LAND ......................................... 3
4.1. ECONOMIC DEVELOPMENT AND DIVERSIFICATION ...................................................... 3
4.2. SELF-DETERMINATION ................................................................................................. 3
4.3. INDIAN HOUSING ......................................................................................................... 3
5. PURPOSE FOR WHICH THE LAND WILL BE USED ............................................. 5
5.1. ECONOMIC DEVELOPMENT .......................................................................................... 5
5.2. SELF-DETERMINATION AND SOVEREIGNTY .................................................................. 6
5.3. INDIAN HOUSING ......................................................................................................... 7
6. IMPACT ON THE STATE AND ITS POLITICAL SUBDIVISIONS RESULTING
FROM THE REMOVAL OF THE LAND FROM THE TAX ROLLS .............................. 7
6.1. TABLE 2, FOUR CORNERS SOUTH PARCELS TAX BREAKDOWN ................................... 8
6.2. TABLE 3, PERCENT OF PROPERTY TAXES ON COUNTY, CITY & STATE REVENUE ........ 8
6.3. TABLE, 4 INTERGOVERNMENTAL AID .......................................................................... 9
6.4. TABLE 5, TRIBAL CONTRIBUTIONS TO SCOTT COUNTY ECONOMY (IN MILLIONS) ..... 10
7. JURISDICTIONAL PROBLEMS- POTENTIAL CONFLICTS OF LAND USE .. 10
8. ADDITIONAL RESPONSIBILITIES THAT MAY ACCRUE TO THE BUREAU
OF INDIAN AFFAIRS ........................................................................................................... 11
9. INFORMATION REGARDING 516 DM 6, APPENDIX 4, NATIONAL
ENVIRONMENTAL POLICY ACT AND 602 DM 2, LAND ACQUISITIONS:
HAZARDOUS SUBSTANCES DETERMINATIONS ....................................................... 11
9.1. PHASE I ENVIRONMENTAL SITE ASSESSMENT ........................................................... 11
9.2. NATIONAL ENVIRONMENTAL POLICY ACT ................................................................ 11
9.3. PHASE I ARCHEOLOGICAL SURVEY ........................................................................... 11
9.4. ENDANGERED SPECIES ACT ....................................................................................... 12
10. REFERENCES ........................................................................................................... 13
11. APPENDIX A, BUSINESS AND GENERAL COUNCIL RESOLUTIONS .......... 1
12. APPENDIX B, REAL ESATE DOCUMENTS .......................................................... 1
Page ii of 20
12.1. COUNTY PROPERTY CARDS ......................................................................................... 1
12.2. PROPERTY TAX STATEMENTS (2017, 2016, 2015) ....................................................... 1
12.3. OWNERSHIP DOCUMENTS ............................................................................................. 1
12.3.1. SMSC Deed_KwikTrip_WD_Doc_780802_08-16-2007 .................................... 1
12.3.2. SMSC Deed_Shamrock_QCD_Doc_780934 -8-17-2007 ................................... 1
12.3.3. SMSC Deed_ OLoughlin2_WD_Doc_8675656 10-20-2004 .............................. 1
12.3.4. SMSC to U.S in Trust—Draft Warranty Deed .................................................... 1
12.4. B4_ALTA SURVEY ..................................................................................................... 1
12.4.1. B4_Four Corners SE_ALTA_07-15-2016 .......................................................... 1
12.4.2. B4_Four_Corners_SW_ALTA_07-13-206 ......................................................... 1
12.4.3. B4_Four Corners_SE_CIP_07-15-2016_Signed ............................................... 1
12.4.4. B4_Four Corners_SE_LDR_07-15-2016_Signed .............................................. 1
12.4.5. B4_Four Corners_SE_SECTION_EXHIBIT_07-15-2016 ................................. 1
12.4.6. B4_Four Corners_SW_SECTION_EXHIBIT_07-15-2016 ................................ 1
12.5. B5_TITLE COMMITMENTS FOR FOUR CORNERS SOUTH ............................................... 1
12.5.1. B5_Four_Corners_SE_TC_ORTE742922_2016-01-26 ..................................... 1
12.5.2. B5_Four_Corners_SW_TC_ORTE742923_2016-01-26 .................................... 1
12.6. B6_SUPPORTING DOCUMENTS .................................................................................... 1
12.6.1. B6_Four_Corners_SE_ORTE742922 and ORTE42923_Doc_A148466 ........... 1
12.6.2. B6_Four_Corners_SE_ORTE742922_Doc_A591784 ....................................... 1
12.6.3. B6_Four_Corners_SE_ORTE742922_Doc_A609828 ....................................... 1
12.6.4. B6_Four_Corners_SE_ORTE742922_Doc_A624072 ....................................... 1
12.6.5. B6_Four_Corners_SE_ORTE742922_Doc_A694085 ....................................... 1
12.6.6. B6_Four_Corners_SE_ORTE742922_Doc_A704376 ....................................... 1
12.6.7. B6_Four_Corners_SE_ORTE742922_Doc_A780801 ....................................... 1
12.6.8. B6_Four_Corners_SE_ORTE742922_The Wilds North 2nd Addition .............. 1
12.6.9. B6_Four_Corners_SE_ORTE742922_The Wilds North 4th Addition ............... 1
12.6.10. B6_Four_Corners_SE_ORTE742922_The Wilds North .................................... 1
12.6.11. B6_Four_Corners_SW_ORTE742923_Doc_A537266 .................................. 1
12.6.12. B6_Four_Corners_SW_ORTE742923_Doc_A703703 .................................. 1
12.6.13. B6_Four_Corners_SW_ORTE742923_Doc_ A148466 ................................. 1
12.6.14. B6_City of Prior Lake_Kwik Trip CUP_2005 ............................................... 1
12.6.15. B6_Disclaimer of Interest Meadow View of Prior Lake ................................ 1
13. APPENDIX C, ENVIRONMENTAL COMPLIANCE DOCUMENTS ................. 2
13.1. C1_FARM POLICY PROTECTION ACT_EXEMPTION LETTER_11/2017 .......................... 2
13.2. C1_SMSC_BAT SURVEY REPORT_NLEB_2015 ........................................................ 2
13.3. C2_FOUR_CORNERS_SE_KWIK-TRIP_PHASE I ESA_2007 ........................................ 2
13.4. C2_FOUR_CORNERS_SW_PHASEI_ESA_2011 .......................................................... 2
13.5. C3_KWIK-TRIP_PHASE 1 ARCH_2009 ........................................................................ 2
13.6. C3_O'LOUGHLIN2_PHASE 1 ARCH_2009 ................................................................... 2
13.7. C3_SHAMROCK_PHASE 1 ARCH _2009 ....................................................................... 2
13.8. C4_FOUR CORNERS SOUTH_NEPA_THPO_2017 ...................................................... 2
13.9. C5_FOUR_CORNERS_SW_WELL_417559_1991 ......................................................... 2
13.10. C5_FOUR_CORNERS_SW_WELL_SEALING_1992 ................................................... 2
13.11. C5_FOUR_CORNERS_SW_WELL_SEALING_218073_2004 ..................................... 2
13.12. C5_UNDERGROUND STORAGE TANK STATUS_2017 ............................................... 2
Page iii of 20
13.13. C5_ USFW CONSULTATION .................................................................................... 2
14. PLATES ......................................................................................................................... 2
14.1. PLATE 1, REGIONAL LOCATION MAP ........................................................................... 2
14.2. PLATE 2, SUBJECT PARCEL LOCATION MAP ................................................................ 2
14.3. PLATE 3, CITY OF PRIOR LAKE 2030 ............................................................................. 2
14.4. PLATE 4, FOUR_CORNERS_SW_CONCEPT_PLAN_2016 ............................................. 2
14.5. PLATE 5, FOUR_CORNERS_SE_CONCEPT_PLAN_2016 ............................................... 2
Page 1 of 20
1. INTENT OF APPLICATION
1.1. Introduction
This document constitutes a formal written request by the Shakopee Mdewakanton Sioux
Community of Minnesota (hereinafter “the Tribe”) for the United States of America to acquire
approximately 50.63 acres of land in trust for the Tribe and declare that land to be a part of the
Tribe’s reservation. The Tribe is a federally recognized Indian Tribe organized under Section 16
of the Indian Reorganization Act (“IRA”). 82 Fed. Reg. 4915 (Jan. 17, 2017).
1.2. Request for Trust Acquisition
The Business Council of the Tribe, acting under the authority delegated by the General
Council (Appendix A), hereby requests the Secretary of the Interior to acquire the four land
parcels in trust for the Tribe, which consists of approximately 50.63 acres in Scott County,
Minnesota (referred to as the “Four Corners South”.) The Four Corners South parcels are
contiguous to existing trust lands (Appendix C.) The Tribe also owns adjacent fee land to the
north. The Tribe’s written request is an on-reservation acquisition under 25 CFR § 151.10.
2. DESCRIPTION OF LAND1
The Four Corners South parcels occupy the corner of the CSAH 83 (Canterbury Rd /
Mystic Lake Blvd) and CSAH 42 (140th St NW). The subject land lies within the jurisdictional
boundaries of the City of Prior Lake (“the City”), Scott County (“the County”), and the State of
Minnesota. The land lies 4.5 miles south of the historic residence area of the SAK PE band of
the Mdewakanton Dakota. The Four Corners South parcels comprise four individual parcels
Table 1.) The full legal descriptions are described on an ALTA Land Title Surveys by Bolton &
Menk, Inc., dated July 12, 2016 (O’Loughlin 2), and July 15, 2016 (Kwik Trip) and (Shamrock)
Appendix B). A warranty deed for the Four Corners South parcels contain a legal description
that matches each ALTA survey (Appendix B). The Tribe currently operates the Shakopee
Dakota Convenience Store 2, formerly a Kwik Trip gas station, on the 3.58 acre parcel in the
southern portion of the Four Corners South parcel.
2.1. Table 1, Four Corners South parcels information
Parcel Name Acres PID Municipality
Kwik Trip 3.58 254340010 Prior Lake
O’Loughlin 40.06 259280110 Prior Lake
1 Required under 25 C.F.R. § 151.9
Page 2 of 20
Shamrock 6.99 254340020 Prior Lake
254340021 Prior Lake
Total: 50.63
Data source: County property tax statements
3. STATUTORY AUTHORITY FOR THE ACQUISITION2
3.1. Statutory Authority
The Supreme Court recently confirmed that the fee to trust process “provides the proper
avenue” for an Indian Tribe “to reestablish sovereign authority over territory.” City of Sherrill v.
Oneida Indian Nation, 544 U.S. 197, 221 (2005). Section 5 of the IRA provides clear statutory
authority for acquisitions of land in trust for Indian Tribes. “Acquisition of land in trust for
Indian Tribes and individuals is authorized by the Indian Reorganization Act, 25 U.S.C. § 465.”
Georgiana Kautz v. Portland Area Director, BIA, 19 IBIA 305, 308 (1991). Under the IRA,
Indian Tribes can purchase land and request the Secretary of the Interior to place the land in trust
pursuant to §465. Chase v. McMasters, 573 F.2d 1011, 1015-16 (8th Cir. 1978); City of Sault
Ste. Marie, Mich. v. Andrus, 532 F. Supp. 157, 162 (D.D.C. 1980). Section 5 of the IRA, 25
U.S.C § 465, provides the statutory authority for this acquisition.
Regulations implementing § 465 are found at 25 C.F.R. Part 151. McAlpine v. United
States, 112 F.3d 1429, 1431 (10th Cir. 1997). While 25 U.S.C. § 465 vests the Secretary with
discretion to make trust acquisition determinations, that discretion is guided by the implementing
regulations and requires that the Secretary’s “final decision should be reasonable in view of its
overall analysis of the factors listed in section 151.10.” Ross v. Acting Muskogee Area Director,
BIA, 18 IBIA 31, 34 (1989); McAlpine v. Muskogee Area Director, BIA, 19 IBIA 2, 6 (1990).
This request is within the scope of the regulations governing trust acquisitions by the
United States, and fulfills the policy as articulated at 25 C.F.R. § 151.3(a) (1)-(3). First, statutory
authorization for the acquisition is found at 25 U.S.C. § 465, et seq., thus satisfying the
requirement of 25 C.F.R. § 151.3. Second, in accordance with 25 C.F.R. § 151.3(a)(1), the Tribe
owns this parcel in fee simple absolute. Third, as set forth in 25 C.F.R. § 151.3(a)(2), this parcel
is adjacent and contiguous to the Tribe’s reservation. Fourth, the Tribe’s request is necessary to
facilitate economic development, self-determination, and housing, 25 C.F.R. § 151.3(a)(3).
2 Required under 25 C.F.R. § 151.10 (a)
Page 3 of 20
4. NEED OF THE TRIBE FOR THE ADDITIONAL LAND3
4.1. Economic Development
Indian tribes are vulnerable when they rely too heavily on a single industry to support its
economy. The Tribe recognizes that its current economy is dependent primarily on a single
enterprise. Economic development is necessary to promote the long-term economic health of the
Tribe. The Dakota way is to allow for resources to be available in the future to sustain life for
seven generations to come. The Tribe seeks to foster diversity in its economy and have the
inalienable land base to continue that diversity for generations to come.
While most communities offer options for shopping and retail services, there is a shortfall
in providing Tribal members and its guest with basic neighborhood amenities. Residents are
spending their money outside of Tribal boundaries for purchasing daily goods such as clothing,
fast food, baby supplies, dry cleaning, personal care services such as hair salons, oil changes etc.
These options simply do not exist within Tribal lands due to, generally, a lack of diversification
in the Tribe’s economy and, specifically, a lack of developed lease spaces.
4.2. Self-determination
Historic United States’ and State of Minnesota policies weakened Dakota people by
making critical decisions for them that frequently resulted in the loss of Dakota land, assets, or
opportunities. Today, the United States supports the right of tribes to self-govern as described in
ratified agreements (i.e., treaties) between the federal government and Tribes and subsequent
Acts of Congress. The Tribe determines to secure inalienable lands to allow for economic
development and diversification to support an enduring economy.
4.3. Indian Housing
Communal living on the land is an essential component of Dakota culture and history.
Dakota people have suffered significantly from Indian policies that forced them from their lands
and away from each other. The separation of Dakota people from their relatives and land was an
important aspect in attempts to destroy Dakota culture. The Tribe recognizes the damage caused
by separation. Today, the need to live in close proximity with relatives on its own inalienable
land is imperative as the Tribe seeks to restore and sustain its culture. The provision of space for
housing has always been an inherent tribal function. Today, residency is a requirement of Tribal
membership. The Tribe has a set planning process for the establishment of Tribal housing.
3 25 C.F.R. § 151.10 (b)
Page 4 of 20
Residential land is held by the Tribe and is platted for residential land assignments. Enrolled
Tribal members are eligible for a Tribal land assignment at the age of 18; at this point they can
establish a new household. Approximately one-half of all enrolled members are under the age of
18. Demographic projections indicate this trend will continue into the foreseeable future.
As of July 26, 2016, the Tribe’s trust land base contains 294 residential lots. In order to
assist in planning for the long-term planning needs, the Tribe retained NFP Insurance Services
Minneapolis, Minnesota) to perform actuarial services. By 2050, the Tribe will need a total of
1097 housing units (NFP Insurance Services, 2013). The long-term projections take in account
the passing of Tribal members, which opens up existing land assignments for re-assignment.
Actual known demand will be for an additional 250 housing units by 2030. (Figure 1). The Tribe
needs to stay current with its supply and demand for Tribal member housing.
Figure 1—Additional Housing Demand. Actual demand based on current living
members who are under the age of 18 and will become eligible for establishing a household
when they turn 18.
The only option available for tribal residents at this time are single family homes located on one
acre lots. There’s been an expressed need by young adults and 55+ population for housing
options that allow more freedom than a single family option. For example, elders are looking for
higher service and low maintenance housing choices. The Tribe will need to provide additional
housing choices for the younger and older demographics.
Page 5 of 20
5. PURPOSE FOR WHICH THE LAND WILL BE USED4
5.1. Economic Development
In the government-to-government relationship between tribes and the federal
government, Indian tribes are increasingly pursuing strategies that enhance economic security
and build prosperity for their communities. The Tribe utilizes its financial resources to first and
foremost meet its responsibilities to the tribal residents. Economic development enables the
Tribe to create and maintain fire and ambulance services, health and child-care services,
educational assistance programs, cultural enhancement, natural resources, public infrastructure
and roads, health care, and numerous other human service programs for its community.
The Tribe purchased Four Corners South at fair market value with the intention of
economic development and diversification, as well as housing. The subject parcels are currently
designated as commercial and business office park use (City of Prior Lake 2030 Comprehensive
Land Use Plan) making it an ideal location for higher density mixed-use development. A Kwik
Trip convenience store was developed on the southeast Kwik Trip parcel in 1995, prior to the
Tribe’s ownership. The Tribe subsequently purchased the Kwik Trip parcel and the Kwik Trip
gas station was renamed the Shakopee Dakota Convenience Store.
Four Corners South lies at the southwest and southeast intersection of CSAH 83 and
CSAH 42. CSAH 83 was recently reconstructed to improve safety and traffic flow for commuter
and visitor traffic. The traffic volumes on the corner of CSAH 83 and CSAH 42 are consistent
with other local major intersections that support successful retail and service businesses. This
location is an ideal location for contiguous growth by directing development to areas where
roads, traffic, and utilities already exist.
Community members have expressed a need to have office space for small business
development. Lease space will be available to both tribal and non-tribal businesses. This Fee to
Trust request allows the Tribe to meet a small portion of economic development and
diversification through site-specific neighborhood retail development. The subject parcels are
ideally situated as part of a larger Planned Unit Development (PUD) to provide a comprehensive
set of compatible land uses.
4 25 C.F.R. § 151.10 (c)
Page 6 of 20
5.2. Self-determination and sovereignty
The Tribe cannot fulfil its long-term responsibilities as a sovereign government unless it has
jurisdiction over its own land required to meet those responsibilities. This trust acquisition
provides the Tribe with the greatest level of jurisdictional uniformity and surety. In this case,
some of the responsibilities are residential housing, economic development and diversification.
The Tribe provides these services at its own expense using Tribal government revenues and
resources. The governmental systems and infrastructure must be under the Tribe’s jurisdiction,
which is the government providing the service. The Tribe has the laws, regulations, staffing,
equipment, and resources necessary to meet its governmental obligations to Tribal members and
overall public safety. For example, the Tribe provides the following regulations, programs and
resources:
Public Health and Safety
o Building Inspection
The Tribe adopted 2015 Minnesota State Building Code. The
Tribe employs certified building officials and inspectors, and has a
well-defined operating permit program.
o Emergency Services
Mdewakanton Public Safety provides full-time, professional fire and
ambulance services 24 hours a day, seven days a week. The Tribe and
local cities also provide mutual aid to one another.
Police service. Under Public Law 280, the State of Minnesota
possesses criminal jurisdiction on the Tribe’s Reservation. Even
though not legally required to do so, the Tribe has an agreement with
the City to provide police service. Per the agreement, the Tribe
compensates the City for the services they provide.
o Road Design
Road design will follow the Tribe’s Design Standard Manual. The
manual adopts MN/DOT Standard Specifications for Highway
Construction / Drainage Manual with modifications that further
restricts runoff generation.
o Civil infrastructure
Page 7 of 20
The Tribe’s Design Standard Manual covers water, sewer, lift station,
and other civil infrastructure requirements.
o Public Works
The Tribal Public Works department provides snow removal, street
cleaning service among others.
Natural Resource Management
o Surface Water Management
o National Pollution Discharge Elimination System (NPDES) Permit
Tribal U.S. Environmental Protection Agency (EPA) issued a
permit covering protection for surface waters for impacts that
may result from construction activities. This Tribal permit is
more stringent than the related permits held by the local
governments.
o Municipal Separate Storm Sewer System (MS4) Permit
Tribal EPA issued a permit to covering storm water discharge.
o Wetland Delineations
The Tribe retains certified wetland delineators, who assess
wetland for inventory and special projects.
5.3. Indian Housing
The Tribe will integrate townhomes or condos as part of a larger Planned Unit
Development (PUD.) The development will engage the community by allowing young adults
and older homeowners to have convenient access to shops, restaurants, a walkable neighborhood,
with convenient access to community gathering areas. The Tribe will provide common area
maintenance to ensure upkeep of landscaping and other common areas.
6. IMPACT ON THE STATE AND ITS POLITICAL SUBDIVISIONS RESULTING
FROM THE REMOVAL OF THE LAND FROM THE TAX ROLLS5
The property taxes paid on the Four Corners South parcels (Table 2), represents less than .1% of
the respective budgets of the County or the City (Table 3). In 2017, the property taxes the Tribe
paid on the Four Corners South parcels were $159,834. This amount is the full extent of tax
revenue loss resulting from the removal of the Four Corners South parcels from the tax rolls to
5 Required under 25 C.F.R. § 151.10 (e)
Page 8 of 20
the state and its political subdivisions. Evaluating the current level of tax payment is the proper
measure of tax impact.6 The Tribe will provide for all the proposed infrastructure and services
required by the proposed development, at no cost to the State or local governments.
6.1. Table 2, Four Corners South Parcels Tax Breakdown
Parcels Tax Scott County City of Prior
Lake
State Other*
2017 $159,834 $24,759 $22,545 $ 46,216 $66,313
2016 $155,118 $23,387 $20,657 $ 33,642 $77,431
2015 $152,714 $23,306 $20,348 $ 35,163 $73,896
2014 $156,952 $23,984 $18,561 $ 36,076 $78,330
Data Source: Scott County Property Tax Statements. * Includes school district, special taxing
districts, and non-school levies.
6.2. Table 3, Percent of Property Taxes on County, City & State Revenue
Year Scott County Revenue % of County
Revenue
City of Prior Lake
Revenue
of Prior Lake
Revenue
2017 $124,654,342 0.0199 $ 20,014,867 0.1126
2016 $131,394,923 0.0178 $ 20,127,566 0.1026
2015 $134,461,786 0.0173 $ 19,411,399 0.1048
2014 $133,717,657 0.0179 $ 17,735,118 0.1047
Data Source: State of Minnesota Auditors Office (2017)
The Tribe has proven to be a reliable partner in directly contributing an equitable share
towards government projects that the Tribe has an interest (Table 4). For three decades, the
Tribe has had contractual agreements with the City to provide emergency services on trust lands,
where nearly all Tribal development has been.
Perhaps more important, the Tribe has stepped forward to contribute to non-Tribal
government projects where a need has been identified but funding was not available, such as
improving the interchange on U.S. Highway 169 in Belle Plaine (Scott County) and improving
local recreational trails. The Tribe also provides governmental services to the surrounding
community like indoor ice facilities and composting; services typically funded through a local
tax levy. The Dakotah! Ice Center is the home ice arena for the Prior Lake High School hocke y
6 State of South Dakota v. U.S. Department of the Interior, 423 F.3d 790 (8th Cir. 2005). The
Eighth Circuit Court of Appeals upheld a determination that an annual tax loss of $2,587.02 is
not significant. Id. at 801-02.
Page 9 of 20
team and Prior Lake youth hockey. Through a mutual agreement, the cities of Prior Lake,
Shakopee, and Savage deposit residential yard waste at Tribe’s Organic Recycling Facility at no
cost. The Prior Lake-Savage School District 719 deposits its food waste disposal at a reduced
rate, allowing it to increase the amount of organic material its schools recycle.
6.3. Table, 4 Intergovernmental Aid
Table 3, Percent of Year Item Contribution
1996 Scott County Sirens $60,000
1996 Shakopee McKenna Road $242,095
1996 Prior Lake Fire Department Donation $49,668
1998 Scott County CR 42 Upgrade $300,000
1996-2004 Blue Lake Sewer Access $482,550
1996-2009 Blue Lake Wastewater Treatment $4,751,175
1996-2013 Prior Lake Police and Fire $5,928,992
1998-2000 Scott County CR 83 / 21 $443,805
1998-2003 Scott County CR 42 / 83 $2,525,546
1998-2017 Scott County Agreement $3,972,500
1999-2000 Shakopee Parks $70,233
2002 Prior Lake Skate Park $25,000.00
2004 Scott County Transit $5,000.00
2004 Shakopee SCALE Training Facility $247,386
2006 Prior Lake Ryan Park $450,000.00
2006 Highway Patrol defibrillators $62,814.00
2000, 2008 Scott County CR 83 Overlay $514,715
2006-2008 Scott County CR 82 Upgrade $1,664,276
2008-2009 Prior Lake/Spring Lake Channel Improvement $176,167
2011 Scott County CR42/17 $1,505,000.00
2012 Chiefs of Police Assoc. within Scott County training $17,000.00
2010-2013 Scott County CR 83 Upgrade (4 lane) $4,109,467
2013 General purpose grants to 5 cities and 1 county $900,000.00
2014 Trails grants to Scott County cities $350,000.00
2015 TH 169 Additional Lane $1,500,000.00
2015 Co Rd 83 $440,000.00
2013 -2015 Shakopee Police Agreement $255,000
2014-2017 City of Prior Lake Police and Fire $1,227,500.00
2016 Co Rd 83 ( 4 lane) $6,103,807.00
2016 City of Shakopee (Scale Training-Police) $229,604.00
2016 City of Shakopee (Donation/Large Grant) $250,000.00
2016 Prior Lake School District $125,000.00
2016 Shakopee School District $125,000.00
Total $39,109,300
Page 10 of 20
Data Source: Tribal accounting.
The Tribe has a sustained record of contributing to the local economy. The Tribe is the
largest employer in the County, and many of its employees are also City and County residents.
The income of these employees is an integral part of the County’s economy. In addition, the
Tribe also purchases goods and services from Scott County-based vendors, which positively
impact the health of the local economy (Table 5).
6.4. Table 5, Tribal Contributions to Scott County economy (in Millions)
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Vendor
payments
in Scott
County
8.2 $ 9.4 $9.4 $12.3 $17.7 $15.3 $ 9.5 $11.9 $10.2 $6.8 $ 9.6
Payroll
paid to
Scott
County
residents
53.8 $54.1 $51.7 $56.9 $62.5 $70.6 $65.1 $72.4 $69.5 $70.2 $77.4
Data source: Tribal accounting and payroll. Data includes payments and payroll from all
Tribal enterprises and government activities. Numbers are rounded.
7. JURISDICTIONAL PROBLEMS- POTENTIAL CONFLICTS OF LAND USE7
The Tribe purchased Four Corners South at fair market value with the intention of
economic development and diversification, as well as housing. Future classification of CSAH 42
roadway will change from a minor arterial to a ‘principal arterial’ roadway (2030
Comprehensive Plan, 2011.) Therefore, any right-of-way access permits are following greater
spacing requirements as a principal arterial. The goal of the designation as a principal arterial is
to carry longer trips at higher speeds with minimal land access.8 The typical characteristics for
minor arterial access is 1,000-10,000+ average daily traffic. The current traffic count on CSAH
42 is 6900. While access type and spacing of ¼ of a mile may have been permitted under a minor
arterial/collector, upgrading the functional class to a principal arterial respectively would create
greater spacing needs or elimination of a type of access altogether.
7 Required under 25 C.F.R. § 151.10 (f)
Page 11 of 20
The subject land is best suited with a north access point 1/4 mile to the southwest
intersection as previously allowed under the minor arterial classification. The Tribe and Scott
County are currently in discussions on finding a middle ground that are acceptable to
transportation planners and the Tribe. The goal for transportation planners and the Tribe is to
balance mobility and safety with a reasonable level of accessibility to support economic
development.
The Kwik Trip parcel is currently a rate user on City of Prior Lake sanitary sewer and
water. The O’Loughlin and Shamrock parcels have the potential to be serviced as a rate user of
City of Prior Lake utilities or through an extension of tribal utilities.
8. ADDITIONAL RESPONSIBILITIES THAT MAY ACCRUE TO THE BUREAU OF
INDIAN AFFAIRS9
The Tribe anticipates minimal additional responsibilities that may accrue to the BIA.
Anticipated activities include recording plats during this phased development and including new
roadways in their inventory.
9. INFORMATION REGARDING 516 DM 6, APPENDIX 4, NATIONAL
ENVIRONMENTAL POLICY ACT AND 602 DM 2, LAND ACQUISITIONS:
HAZARDOUS SUBSTANCES DETERMINATIONS10
9.1. Phase I Environmental Site Assessment
Pinnacle Engineering completed a Phase I Environmental Site Assessment of the
O’Loughlin parcel in August of 2011. Braun Intertec Corporation completed a Phase 1
Environmental Site Assessment for Kwik Trip in June of 2007. There are no recognized
environmental conditions on either report (Appendix C.) The Kwik Trip parcel has five active
Underground Storage Gas Tanks; the storage tanks are compliant and monitored by the
Minnesota Pollution Control Agency.
9.2. National Environmental Policy Act
A change in land use is proposed for Four Corners South. A draft environmental
assessment accompanies this document (Appendix C.)
9.3. Phase I Archeological Survey
Bolton and Menk, Inc. completed Phase I Archeological Reconnaissance Surveys of the
Four Corners South parcels and the recommended Finding of Fact is “No Historic Properties
9Required under 25 C.F.R. § 151.10 (g)
10 Required under 25 C.F.R. § 151.10 (h)
Page 12 of 20
Affected” (Appendix C.) The Tribe’s Cultural Resources Department agreed with this finding
and determined a Finding of No Significant Impact for placing this parcel into trust (Appendix
C.)
9.4. Endangered Species Act
The U.S. Fish and Wildlife Service lists the Northern Long-Eared Bat (“NLEB”) as
endangered and present in Scott County (USFWS, 2015.) In 2015 the Tribe hired West, Inc.
Cheyenne, Wyoming), national respected bat experts, to perform a bat survey of all Tribal land
holdings. Acoustic surveys were conducted from July 13 - August 14, 2015. Five sites were
surveyed throughout SMSC lands. The nearest location with confirmed NLEB is at SMSC-6,
nearly 1.8 miles to the northeast in a dense forest cover (West, Inc. 2015.) (Appendix C.) Four
Corners South does not contain Northern Long-eared Bat habitat. There is no tree clearing
activities within 0.25 miles of a known NLEB hibernaculum.
Page 13 of 20
10. REFERENCES
Scott County, Minnesota Auditor Office. 2017. City and County Financial Database.
http://www.auditor.state.mn.us/
West, Inc. 2015. Shakopee Mdewakanton Sioux Community Bat Survey Report.
U.S. Fish and Wildlife Service. 2017. Endangered Species in Minnesota: County
Distribution of Federally-Listed Threatened, Endangered, Proposed, and Candidate Species.
https://www.fws.gov/midwest/endangered/lists/minnesot-cty.html
Scott County, Minnesota. 2017. Property GIS & Land. Land Records.
http://www.county.scott.mn.us/
Scott County, Minnesota Auditors Office. 2017. City and County Financial Database.
http://www.auditor.state.mn.us/
Department of the Interior, Bureau of Indian Affairs. 2017. Indian Entities Recognized
and Eligible to Receive Services from the United States Bureau of Indian Affairs. 82 Fed. Reg.
4915 (Jan. 17, 2017).
Treaty with the Sioux-Mdewakanton and Wahpakoota Bands, 1851.
http://digital.library.okstate.edu/kappler/vol2/treaties/sio0591.htm#mn2
Bureau of Indian Affairs. Frequently Asked Questions-Why Tribes Exist Today in the
United States, 2017. https://www.bia.gov/frequently-asked-questions
United States Census Bureau. American Community Survey, 2014.
https://www.census.gov/newsroom/facts-for-features/2015/cb15-ff22.html
Appendix D, Functional Classification Criteria and Characteristics and MN DOT Access
Guidance. https://metrocouncil.org/Transportation/Planning-2/Key-Transportation-Planning-
Documents/Transportation-Policy-Plan/The-Adopted-2040-TPP-(1)/Final-2040-Transportation-
Policy-Plan/2040-TPP-Appendix-D-Functional-Class.aspx
Programmatic Biological Opinion on Final 4(d) Rule for the Northern Long Ear Bat and
Activities Excepted from Take Prohibitions. U.S Fish and Wildlife Service. January 5, 2016.
Page 1 of 20
11. APPENDIX A, BUSINESS AND GENERAL COUNCIL RESOLUTIONS
12. APPENDIX B, REAL ESATE DOCUMENTS
12.1. County Property Cards
12.2. Property Tax Statements (2017, 2016, 2015)
12.3. Ownership documents
12.3.1. SMSC Deed_KwikTrip_WD_Doc_780802_08-16-2007
12.3.2. SMSC Deed_Shamrock_QCD_Doc_780934 -8-17-2007
12.3.3. SMSC Deed_ OLoughlin2_WD_Doc_8675656 10-20-2004
12.3.4. SMSC to U.S in Trust—Draft Warranty Deed
12.4. B4_ALTA Survey
12.4.1. B4_Four Corners SE_ALTA_07-15-2016
12.4.2. B4_Four_Corners_SW_ALTA_07-13-206
12.4.3. B4_Four Corners_SE_CIP_07-15-2016_Signed
12.4.4. B4_Four Corners_SE_LDR_07-15-2016_Signed
12.4.5. B4_Four Corners_SE_SECTION_EXHIBIT_07-15-2016
12.4.6. B4_Four Corners_SW_SECTION_EXHIBIT_07-15-2016
12.5. B5_Title Commitments for Four Corners South
12.5.1. B5_Four_Corners_SE_TC_ORTE742922_2016-01-26
12.5.2. B5_Four_Corners_SW_TC_ORTE742923_2016-01-26
12.6. B6_Supporting Documents
12.6.1. B6_Four_Corners_SE_ORTE742922 and ORTE42923_Doc_A148466
12.6.2. B6_Four_Corners_SE_ORTE742922_Doc_A591784
12.6.3. B6_Four_Corners_SE_ORTE742922_Doc_A609828
12.6.4. B6_Four_Corners_SE_ORTE742922_Doc_A624072
12.6.5. B6_Four_Corners_SE_ORTE742922_Doc_A694085
12.6.6. B6_Four_Corners_SE_ORTE742922_Doc_A704376
12.6.7. B6_Four_Corners_SE_ORTE742922_Doc_A780801
12.6.8. B6_Four_Corners_SE_ORTE742922_The Wilds North 2nd Addition
12.6.9. B6_Four_Corners_SE_ORTE742922_The Wilds North 4th Addition
12.6.10. B6_Four_Corners_SE_ORTE742922_The Wilds North
12.6.11. B6_Four_Corners_SW_ORTE742923_Doc_A537266
12.6.12. B6_Four_Corners_SW_ORTE742923_Doc_A703703
12.6.13. B6_Four_Corners_SW_ORTE742923_Doc_ A148466
12.6.14. B6_City of Prior Lake_Kwik Trip CUP_2005
12.6.15. B6_Disclaimer of Interest Meadow View of Prior Lake
Page 2 of 20
13. APPENDIX C, ENVIRONMENTAL COMPLIANCE DOCUMENTS
13.1. C1_Farm Policy Protection Act_Exemption Letter_11/2017
13.2. C1_SMSC_Bat Survey Report_NLEB_2015
13.3. C2_Four_Corners_SE_Kwik-Trip_Phase I ESA_2007
13.4. C2_Four_Corners_SW_PhaseI_ESA_2011
13.5. C3_Kwik-Trip_Phase 1 Arch_2009
13.6. C3_O'Loughlin2_Phase 1 Arch_2009
13.7. C3_Shamrock_Phase 1 Arch _2009
13.8. C4_Four Corners South_NEPA_THPO_2017
13.9. C5_Four_Corners_SW_well_417559_1991
13.10. C5_Four_Corners_SW_well_sealing_1992
13.11. C5_Four_Corners_SW_well_sealing_218073_2004
13.12. C5_Underground Storage Tank Status_2017
13.13. C5_USFW Consultation
14. PLATES
14.1. Plate 1, Regional Location Map
14.2. Plate 2, Subject Parcel Location Map
14.3. Plate 3, City of Prior Lake 2030
14.4. Plate 4, Four_Corners_SW_Concept_Plan_2016
14.5. Plate 5, Four_Corners_SE_Concept_Plan_2016
O’Laughlin
Parcel
259280110
Kwik Trip Parcel
254340010
Shamrock Parcels
254340020 & 254340021