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HomeMy WebLinkAbout08(A) - Resolution Adopting the Prior Lake Annexation Area Alternative Urban Areawide Review (2025-06) Report ITEM: 8A CITY COUNCIL AGENDA REPORT MEETING DATE: April 28, 2026 PREPARED BY: Christine Watson, Public Works Supervisor – Administration Alison Harwood, WSB LLC PRESENTED BY: Nick Monserud, Public Works Director/City Engineer Casey McCabe, Community Development Director AGENDA ITEM: Resolution Adopting the Prior Lake Annexation Area Alternative Urban Areawide Review (2025-06) RECOMMENDED ACTION: Adopt a resolution adopting the Alternative Urban Areawide Review for the Spring Lake Township orderly annexation area and adjacent areas in Prior Lake (2025-06). BACKGROUND: The City of Prior Lake entered into an updated Orderly Annexation Agreement with Spring Lake Township on September 10, 2024. In March 2025, the City determined that a study of the development needs of the area would be practical to adequately prepare for development and provide guidance for developers to understand how their project fits into the overall public infrastructure plans prior to development. Minnesota Rule 4410 also requires environmental review for certain types and sizes of projects, including those which could be proposed within the orderly annexation area of Spring Lake Township as well as adjacent areas within the City of Prior Lake. As an alternative to required environmental review of individual developments, the Rule includes a substitute environmental review process, the Alternative Urban Areawide Review (AUAR), which allows for review of large geographic areas based on one or more land use development scenarios. An AUAR can be used to evaluate how much development can be accommodated in an area without significant impacts on the environment or public infrastructure. The AUAR can also establish mitigation measures which will need to be completed as development progresses in order to minimize the potential for significant impacts. Staff determined that an AUAR was prudent for the study area and is an acceptable form of environmental review for future developments. The City ordered the preparation of an AUAR at their November 12, 2025 City Council meeting. The draft AUAR was prepared and distributed for agency and public comment from January 6 – February 5, 2026. The City received comments from 10 governmental agencies. The AUAR was revised as necessary based on the comments received and a final AUAR was distributed for a 10-day objection period on March 17, 2026. The City received no objections to the AUAR. One agency provided a comment. The comment, and the City’s response, is attached. No revisions to the final AUAR were necessary based on this comment. The AUAR study area encompasses approximately 2,730 acres located in the southwest corner of Prior Lake, Scott County, Minnesota (Figure 1). The study area includes the orderly annexation area of Spring Lake Township as well as adjacent areas within the City of Prior Lake. City of Prior Lake | 4646 Dakota Street SE | Prior Lake MN 55372 Item 8A Page | 2 Two development scenarios were studied (Table 1). Scenario 1 (Figure 2) is consistent with the land uses in the existing City’s comprehensive plan, and Scenario 2 (Figure 3) involves a higher density of residential development, based on anticipated requirements for the upcoming 2050 Comprehensive Plan update which will begin next year. Both scenarios also include varying amounts of retail, business park, and industrial development. Table 1: AUAR Development Scenarios Scenario 1 Scenario 2 Land Use* Comprehensive Plan (acres) (acres) Urban Low Density 1,780 1,485 Urban Medium Density 139 356 Urban High Density 0 42 Retail/General Business 180 143 Planned Industrial 413 334 Business Park 0 152 * Campbell Lake, existing rights of way, and the existing Spring Lake Ridge residential development total approximately 218 acres for both scenarios and do not contribute to the land use acres. Following adoption of the AUAR, the document will remain as a valid environmental review for developments within the study area for five (5) years. Developments that meet the assumptions of the development scenarios will not require individual environmental review. As development progresses, the mitigation plan will be reviewed, and applicable mitigation measures will be implemented to ensure potential significant impacts are avoided or mitigated. Upon expiration, the City may prepare an AUAR Update to extend environmental review coverage. ALTERNATIVES: 1. Motion and second to adopt a resolution adopting the Alternative Urban Areawide Review for the Spring Lake Township orderly annexation area and adjacent areas in Prior Lake (2025-06). 2. Motion and second to deny this item and direct staff on potential next steps. ATTACHMENTS: 1. Resolution 2. Figures 1-3 3. Agency Comments and Responses 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 26-xxx RESOLUTION ADOPTING THE ALTERNATIVE URBAN AREAWIDE REVIEW FOR THE SPRING LAKE TOWNSHIP ORDERLY ANNEXATION AREA AND ADJACENT AREAS IN PRIOR LAKE (2025-06) Motion By: Second By: WHEREAS, the City has entered into an updated Orderly Annexation Agreement with Spring Lake Township; and WHEREAS, the City has an adopted Comprehensive Plan that identifies growth and development in the orderly annexation area and adjacent areas of Prior Lake; and WHEREAS, the City recognizes the need to begin planning for development of the land in the orderly annexation areas and adjacent areas of Prior Lake; and WHEREAS, the City determined that an environmental review is prudent to develop the orderly annexation area and adjacent areas in Prior Lake; and WHEREAS, Minnesota Rule Part 4410.3610 provides for a substitute form of environmental review known as the Alternative Urban Areawide Review (AUAR); and WHEREAS, an AUAR allows for environmental review of development and associated infrastructure in a particular geographic area within a jurisdiction if the local government unit as an adopted Comprehensive Plan; and WHEREAS, the City of Prior Lake is the Responsible Government Unit (RGU) pursuant to Minnesota Rules Part 4410.3610 Subp. 1; and WHEREAS, the study area is approximately 2,730 acres in the southwest corner of the city; and WHEREAS, two proposed development scenarios have been identified to evaluate as part of the AUAR, each of which has varying amounts of residential, industrial, business park, and retail development; and WHEREAS, the City Council ordered the preparation of the AUAR on November 12, 2025; and WHEREAS, the draft AUAR was prepared and distributed per Minnesota Rules Part 4410.3610; and WHEREAS, comments received were considered and the AUAR was revised and distributed for a 10-day objection period; and WHEREAS, no objections were received. 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 adopts the Alternative Urban Areawide Review for the proposed study area including the Spring Lake Township Orderly Annexation Area and adjacent areas in the City of Prior Lake. th Passed and adopted by the Prior Lake City Council this 28 day of April 2026. VOTE Briggs Braid Churchill Lake Hellier Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Jason Wedel, City Manager C:\\Users\\hsimon\\AppData\\Local\\Temp\\Report Attachment - 20260428 Adopt Annexation Area AUAR - RESO_677052\\Report Attachment - 20260428 Adopt Annexation Area AUAR - RESO.docx 2 1 Figure 1 – Project Location 2 Figure 2 – Scenario 1 3 Figure 3 – Scenario 2 Agency Topic/AUAR Section Comment Response Land Use The AUAR covers over 2,500 acres, historically the northwestern quarter of Spring Lake Twp. Most of this land was not previously considered as Prior Lake urban reserve during Met Council’s Imagine 2050 forecasts preparation. Prior Lake intends to address this future land supply in a Plan Amendment or the 2050 Plan Update which will include a forecast adjustment. At the time of a next Plan Amendment or Plan Update, Met Council will use its Imagine 2050 forecast as a start point, and will recommend adding to the Prior Lake forecast as much as +1,800 jobs (either scenario); as well as +2,900 households (scenario 1) or +3,400 households (scenario 2). Council staff advise a discussion of forecasts and TAZ allocations of growth during the City’s preparation of a 2050 Plan Update. The City will consult with MetCouncil to discuss forecasts and TAZ growth allocations during the preparation of a 2050 Plan Update. Water Resources/Section 12b When the information becomes available, please provide a staging table and map showing Scenario 1 and 2 forecasts by decade. The City will plan to include additional detail related to staging within the upcoming 2050 Comprehensive Plan. Met Council Metropolitan Council (Regional Office & Environmental Services) 390 Robert Street North, Saint Paul, MN 55101-1805 P 651.602.1000 | F 651.602.1550 | TTY 651.291.0904 metrocouncil.org An Equal Opportunity Employer March 30, 2026 Casey McCabe, Community Development Director City of Prior Lake 4646 Dakota Street SE Prior Lake, MN 55372 RE: City of Prior Lake – Final Alternative Urban Areawide Review – Prior Lake Annexation Area Metropolitan Council Review File No. 23168-2 Metropolitan Council District No. 4 Dear Casey McCabe: Council staff has conducted a review of this Final Alternative Urban Areawide Review (FAUAR) and Mitigation Plan to determine its accuracy and completeness in addressing regional concerns. Council staff commented on the draft AUAR in its February 4, 2026, letter. The study area encompasses 2,512 acres located in southwest Prior Lake around Campbell Lake extending southwest to the intersection of Highway 79 and Highway 282. The FAUAR proposes two scenarios. The two scenarios primarily differ in the type and number of residential units and in the breakdown of the area’s industrial/business districts. The staff review has concluded that the FAUAR addresses previous comments and is complete and accurate with respect to regional concerns and raises no major issues of consistency with Council policies. The Council does not object to the FAUAR; however, staff offers the following comments for your consideration: Item 10: Land Use (Todd Graham, 651-602-1322) The AUAR covers over 2,500 acres, historically the northwestern quarter of Spring Lake Twp. Most of this land was not previously considered as Prior Lake urban reserve during Met Council’s Imagine 2050 forecasts preparation. Prior Lake intends to address this future land supply in a Plan Amendment or the 2050 Plan Update which will include a forecast adjustment. At the time of a next Plan Amendment or Plan Update, Met Council will use its Imagine 2050 forecast as a start point, and will recommend adding to the Prior Lake forecast as much as +1,800 jobs (either scenario); as well as +2,900 households (scenario 1) or +3,400 households (scenario 2). Council staff advise a discussion of forecasts and TAZ allocations of growth during the City’s preparation of a 2050 Plan Update. Item 12: Water Resources- Wastewater (Roger Janzig, 651-602-1119) When the information becomes available, please provide a staging table and map showing Scenario 1 and 2 forecasts by decade. Page - 2 | March 30, 2026 | METROPOLITAN COUNCIL This will conclude the Council’s review of the FAUAR. The Council will take no formal action on the FAUAR. If you have any questions or need further information, please contact MacKenzie Young- Walters, Principal Reviewer, at 651-602-1373 or via email at MacKenzie.Young- Walters@metc.state.mn.us. Sincerely, Angela R. Torres, AICP, Senior Manager Local Planning Assistance CC: Tod Sherman, Development Reviews Coordinator, MnDOT - Metro Division Deb Barber, Metropolitan Council District No. 4 Judy Sventek, Water Resources Manager MacKenzie Young-Walters, Sector Representative/ Principal Reviewer Reviews Coordinator N:\CommDev\LPA\Communities\Prior Lake\Letters\Prior Lake 2026 Prior Lake Annexation Area FAUAR-NoObjections 23168-2.docx