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HomeMy WebLinkAbout05(G) - Ordinance Amending Shoreland Impervious Coverage and Lake Classifications Report ITEM: 5G CITY COUNCIL AGENDA REPORT MEETING DATE: October 27, 2026 PREPARED BY: Paul Moretto, Planner PRESENTED BY: Casey McCabe, Community Development Director AGENDA ITEM: Ordinance Amending Shoreland Impervious Coverage and Lake Classifications RECOMMENDED ACTION: Approve an ordinance amending Prior Lake City Code Section 10-439 relating to impervious surface standards for residential shoreland planned unit developments and Section 10-434 relating to the classification of protected waters, and approving the official ordinance summary for publication. BACKGROUND: City staff is proposing amendments to Sections 10-439 and 10-434 of the Prior Lake City Code relating to impervious surface standards for shoreland planned unit developments (PUDs) and the classification of protected waters. Shoreland PUD Impervious Surface Standards For shoreland PUDs, the development area within the shoreland district is divided into multiple tiers by locating lines parallel to the ordinary high water level (OHWL) over the entire property within the 1,000 ft. OHWL overlay district. The shoreland tier dimensions differ in width based on the classification of the waterbody where the development is proposed. City Code Section 10-439 currently limits impervious surface coverage to 25 percent within each individual shoreland tier for both residential and commercial PUDs. This requirement is more restrictive than the recommendations in the Minnesota Department of Natural Resources (DNR) model Shoreland Ordinance, which requires a maximum of 25 percent impervious coverage for all development property within the shoreland overlay district but does not apply the same limitation of 25 percent coverage per tier. Prior Lake’s more restrictive shoreland regulations can create challenges for residential development. The tier-based density provisions are intended to encourage development farther from the shoreline, providing opportunities to preserve open space and reduce shoreline impacts. However, roads, sidewalks, driveways, and other infrastructure necessary to serve residential development can consume a substantial portion of the impervious surface allowance within an individual tier. As a result, the existing requirement limiting the maximum impervious to 25 percent per tier, opposed to 25 percent of the entire development area within the shoreland overlay district, can restrict a development's ability to accommodate dwelling units otherwise permitted under the tier-density calculations. The proposed amendment would establish a maximum impervious surface coverage of 25 percent for the entire residential PUD project site within the Shoreland Overlay District, rather than applying the limitation separately to each tier. This would provide flexibility in distributing impervious surfaces while maintaining the overall 25 percent limitation. City of Prior Lake | 4646 Dakota Street SE | Prior Lake MN 55372 Item 5G Page | 2 The amendment does not change the maximum number of dwelling units permitted under the shoreland tier-density calculations, the restrictions on transferring density toward the shoreline, shoreline setbacks, open-space requirements, shore and bluff impact zone protections, or stormwater management requirements. The existing tier-based impervious surface standards for commercial PUDs would remain unchanged. Shoreland PUDs would continue to be subject to Planning Commission review and City Council approval. Protected Waters Classification The proposed amendment to Section 10-434 would add three unnamed public water basins to the City's list of protected waters. The Minnesota Department of Natural Resources (DNR) identified basins 70018600, 70015300, and 70016900 as Natural Environment Lakes that should be included in the City's shoreland ordinance. The addition of these lakes is an administrative update to the City's protected-waters inventory and does not change the proposed impervious surface standards. DNR Review The City submitted the proposed amendment to the DNR on October 2, 2026. In a letter dated October 5, 2026, the DNR granted conditional approval, finding the proposed amendment substantially compliant with state shoreland rules. The DNR required the City to identify the three additional public water basins as a condition of their preliminary approval and the city is required to submit the adopted ordinance and documentation following City Council action. Final DNR approval is required before the ordinance amendments become effective. Planning Commission Recommendation On October 19, 2026, the Planning Commission held a public hearing to consider the proposed amendments. Following the public hearing, the Planning Commission recommended approval of the amendments to Sections 10-439 and 10-434 on a vote of 4-0. Staff recommends that the City Council approve the proposed ordinance amendments and the official ordinance summary for publication. FINANCIAL IMPACT: No direct financial impact to the City is anticipated as a result of the proposed ordinance amendments. ALTERNATIVES: 1. Motion and a second, as part of the consent agenda, adopting an ordinance amending Sections 10-439 and 10-434 of the Prior Lake City Code and the official ordinance summary for publication. 2. Remove this item from the consent agenda for additional discussion. ATTACHMENTS: 1. Proposed Ordinance Amendment and Official Summary 2. DNR Conditional Approval Letter dated October 5, 2026 3. Maps of Additional Protected Water Basins Revised 09/26/2024 Ecological and Water Resources 1200 Warner Road St. Paul, MN 55106 October 5, 2026 Paul Moretto Planner, City of Prior Lake 4646 Dakota Street SE Prior Lake, MN 55372 Re: Conditional Approval of Prior Lake Shoreland Ordinance Amendment Dear Paul: Thank you for sending your proposed shoreland ordinance amendment to the DNR for conditional approval review. I am pleased to inform you that the proposed amendment is substantially compliant with the statewide rules (MR 6120.2500 – 6120.3900) and hereby approved, provided the conditions of approval in this letter are met. Ordinance Evaluation We have reviewed the following sections that you propose to amend received on October 2, 2026 for compliance with state shoreland rules. Our conditional approval only applies to the specific sections listed below. Section 10-439 Planned unit developments (PUDs) Subsection (d) Paragraph (3) Sub-paragraph (b) Conditions of Approval The following conditions must be met before the DNR will issue final approval: 1. Reference the three public water basins in the city’s shoreland ordinance; Water Body Name Public Waters ID Number DNR Classification unnamed 70018600 Natural Environment unnamed 70015300 Natural Environment unnamed 70016900 Natural Environment 2. No conditions on the proposed wording for Section 10-439(d)(3)b of the Prior Lake City Code 3. Return the attached “Ordinance Processing Checklist” and documents identified on the checklist Revised 09/26/2024 Next Steps Following are the steps for completing and receiving final DNR approval for your amendment: 1. Revise the amendment based on the conditions listed above. 2. The city council adopts the amendment. 3. Email the completed Ordinance Processing Checklist (attached) and the documents identified on the checklist within 10 days of city council adoption to: a. David De Paz (David.depaz@state.mn.us) b. Ordinance.review.dnr@state.mn.us 4. We will review the amendment adopted by the city council for consistency with the above conditions. 5. If the adopted amendments are consistent with the conditions, I will send you a “final approval” letter. State rules require DNR final approval of shoreland ordinances and amendments for those ordinances to be effective. A shoreland ordinance is an important land use regulation that helps to protect surface water quality, near shore habitat, and scenic character of Minnesota’s public waters. We appreciate your efforts to protect these resources for all present and future Minnesotans. David De Paz is available to assist with ordinance technical guidance and to consult with you on other land and water-related projects. Sincerely, Michael A. Larson Central Region Manager Attachments: Proposed Ordinance with DNR comments Ordinance Processing Checklist c: David De Paz, DNR Area Hydrologist Ordinance.review.dnr@state.mn.us Draft ordinance amendment ORDINANCE NO. 126-______ AN ORDINANCE AMENDING PRIOR LAKE CITY CODE SECTION 10-439 RELATING TO IMPERVIOUS SURFACE STANDARDS FOR SHORELAND PLANNED UNIT DEVELOPMENTS The City Council of the City of Prior Lake, Minnesota, ordains: Section 1. Section 10-439(d)(3)b of the Prior Lake City Code is hereby repealed and replaced in its entirety with the following: b. Be designed and constructed to effectively manage reasonably expected quantities and qualities of stormwater runoff in accordance with city PWDM requirements. For residential PUDs, impervious surface coverage for the entire project site shall not exceed 25 percent. For commercial PUDs, impervious surface coverage within any tier shall not exceed 25 percent of the tier area, except that 35 percent impervious surface coverage may be allowed in the first tier of general development lakes with an approved stormwater management plan and consistent with section 10-436. Section 2. This ordinance shall become effective from and after its passage and publication according to law. WHAT IS BEING DONE: Strike and add section: b. Be designed and constructed to effectively manage reasonably expected quantities and qualities of stormwater runoff in accordance with city PWDM requirements. Impervious surface coverage within any tier shall not exceed 25 percent of tier area, except that for commercial PUD's 35 percent impervious surface coverage may be allowed in the first tier of general development lakes with an approved stormwater management plan and consistent with section 10-436. For residential PUDs, impervious surface coverage for the entire project site shall not exceed 25 percent. For commercial PUDs, impervious surface coverage within any tier shall not exceed 25 percent of the tier area, except that 35 percent impervious surface coverage may be allowed in the first tier of general development lakes with an approved stormwater management plan and consistent with section 10-436. 4646 Dakota Street SE Prior Lake, MN 55372 CITY OF PRIOR LAKE ORDINANCE NO. 126-___ AN ORDINANCE AMENDING PRIOR LAKE CITY CODE SECTION 10-439 RELATING TO IMPERVIOUS SURFACE STANDARDS FOR SHORELAND PLANNED UNIT DEVELOPMENTS AND AMENDMENTS TO SECTION 10-434 ADDING UNNAMED LAKES The City Council of the City of Prior Lake, Minnesota, ordains: Section 1. City Code Chapter 10 – Zoning, Article IV. – OVERLAY DISTRICTS, Division 2. SHORELAND REGULATIONS, Section 10-439 Planned unit developments (PUDs), subsection (d)(3)b is hereby deleted in its entirety and replaced with the following: b. Be designed and constructed to effectively manage reasonably expected quantities and qualities of stormwater runoff in accordance with city PWDM requirements. For residential PUDs, impervious surface coverage for the entire project site shall not exceed 25 percent within the shoreland overlay district. For commercial PUDs, impervious surface coverage within any tier shall not exceed 25 percent of the tier area, except that 35 percent impervious surface coverage may be allowed in the first tier of general development lakes with an approved stormwater management plan and consistent with section 10-436. Section 2. City Code Chapter 10 – Zoning, Article IV. – OVERLAY DISTRICTS, Division 2. SHORELAND REGULATIONS, Section 10-434 Designation of types of land use, subsection (a) is hereby amended by adding to the table of classified lakes the following waterbodies: The following additional unnamed public water basins are classified as Natural Environment Lakes: DNR ID No. 70018600, DNR ID No. 70015300, and DNR ID No. 70016900. Section 3. Summary approved. The City Council hereby determines that the text of the summary marked “Official Summary of Ordinance No. 126-___” a copy of which is attached hereto clearly informs the public of the intent and effect of the ordinance. The City Council further determines that publication of the title and such summary will clearly inform the public of the intent and effect of the ordinance. Section 4. Filing. A copy of the ordinance shall be filed in the office of the City Clerk. This copy shall be available for inspection by any person during regular office hours. Section 5. Publication. The City Clerk shall publish the title of this ordinance and the official summary in conformance with State Statute and City Code requirements with notice that a printed copy of the ordinance is available for inspection by any person during regular office hours at the Office of the City Clerk. Section 6. Effective date. This ordinance shall take effect upon its passage and the publication of its title and the official summary and Minnesota Department of Natural Resources final approval. th Passed by the City Council of the City of Prior Lake this 27 day of October 2026. ATTEST: _________________________ __________________________ Jason Wedel, City Manager Kirt Briggs, Mayor Official Summary of Ordinance No. 126-___ AN ORDINANCE AMENDING PRIOR LAKE CITY CODE SECTION 10-439 RELATING TO IMPERVIOUS SURFACE STANDARDS FOR SHORELAND PLANNED UNIT DEVELOPMENTS AND AMENDMENTS TO SECTION 10-434 ADDING UNNAMED LAKES The following is the official summary of Ordinance No. 126-___ passed by the City Council of Prior th Lake on October 27, 2026. Prior Lake City Code Section 10-439, Planned unit developments (PUDs), was amended to establish a maximum impervious surface coverage of 25 percent of the entire project site within the shoreland overlay district for residential shoreland planned unit developments, rather than applying the limit separately to each shoreland tier. The amendment retains the existing tier-based impervious surface coverage requirements for commercial planned unit developments. Prior Lake City Code Section 10-434, Designation of types of land use, was amended to identify three additional unnamed public water basins, DNR ID Nos. 70018600, 70015300, and 70016900, as Natural Environment Lakes. A printed copy of the ordinance is available for inspection by any person during regular office hours in the Office of the City Clerk at Prior Lake City Hall, 4646 Dakota Street SE, Prior Lake, MN 55372. Page 2 of 2 Lakes Exhibit: Unnamed Lake: 77016900 Unnamed Lake: 70018600 Unnamed Lake: 70015300