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HomeMy WebLinkAbout09(B) - Resolution Determining a Commercial Marina Expansion Does Not Meet the Threshold for Environmental Review per Minn. Rule 4410.4300, Subp. 25 Report ITEM: 9B CITY COUNCIL AGENDA REPORT MEETING DATE: June 23, 2026 PREPARED BY: Casey McCabe, Community Development Director PRESENTED BY: Casey McCabe AGENDA ITEM: Resolution Determining a Commercial Marina Expansion Does Not Meet the Threshold for Environmental Review per Minn. Rule 4410.4300, Subp. 25 RECOMMENDED ACTION: Approval of a resolution determining a commercial marina expansion at 3950 Green Heights Trail does not meet the threshold for environmental review per Minn. Rule 4410.4300, Subp. 25. BACKGROUND: The Minnesota Department of Natural Resources (DNR) issued a Transferred-Amended Public Waters Work Permit #1988-6299 to JKL Docks, LLC \[Captain Jack’s\] on April 5, 2007 related to a commercial marina on Upper Prior Lake at 3950 Green Heights Trail SW (PID 251020221). This permit was amended on April 10, 2008 to allow for a 20-foot dock extension. There is a discrepancy on the 2008 amended permit as the letter provided by the DNR identifies a previously approved City of Prior Lake Conditional Use Permit and previous DNR permits allowing for a total of 81 boat slips; however, Attachment A of the amended permit identifies a dock configuration which provides mooring spaces for approximately 98 watercraft. On April 10, 2015, Lakers Holdings LLC dba Charlie’s on Prior purchased the subject property and assumed the DNR dock permit. In the spring of 2018, Charlie’s on Prior installed a commercial marina occupying approximately 44,129 square feet of surface area for the mooring of approximately 76 watercraft and the dock remained in a similar configuration for several years. In September 2023, Lakers Holdings LLC purchased an adjacent parcel to the east of the subject property (Lot 19, Green Heights First Addition) which had historically been utilized as a private docking facility for five to six watercraft. The adjacent parcel was combined with the subject property in December 2024 via quit claim deed; this action extended the shoreline of the Charlie’s on Prior property by approximately 70.85 feet. In the spring of 2024, Charlie’s on Prior installed a commercial marina occupying approximately 55,742 square feet of surface area for the mooring of approximately 97 watercraft. The dock was adjusted in the spring of 2025 and occupied approximately 63,829 square feet of surface area for the mooring of approximately 97 watercraft. Current Circumstances Earlier this year, Charlie’s on Prior applied to the DNR for an amendment to the previously approved dock permit to account for the additional shoreland added with the combination of the adjacent parcel, to resolve the discrepancy between the identified number of boat slips and the dock configuration exhibit on the amended permit, and to clarify the dock dimensions, configuration and number of approved boat slips. City of Prior Lake | 4646 Dakota Street SE | Prior Lake MN 55372 Item 9B Page | 2 Minnesota Administrative Rules 4410.4300, Mandatory EAW Categories, identifies projects that require an environmental assessment worksheet (EAW) based on meeting or exceeding a specific threshold. This rule includes Subp. 25, Marinas, which states, for construction or expansion of a marina or harbor that results in a 20,000 or more square foot total or a 20,000 or more square foot increase of water surface area used temporarily or permanently for docks, docking, or maneuvering of watercraft, the local governmental unit is the RGU \[responsible government unit\]. Minnesota Administrative Rules 4410.4300, Mandatory EAW Categories, Subp. 1. B. includes a three-year lookback rule and states, if the proposed project is an expansion or additional stage of an existing project, the cumulative total of the proposed project and any existing stages or components of the existing project must be included when determining if a threshold is met or exceeded if construction was begun within three years before the date of application for a permit or approval from a governmental unit for the expansion or additional stage but after April 21, 1997, except that any existing stage or component that was reviewed under a previously completed EAW or EIS need not be included. The DNR has indicated to city staff that they will not issue an amended dock permit for Charlie’s on Prior until the City of Prior Lake, as the RGU, makes an official environmental review determination based on Minnesota Rules 4410.4300, Subp. 25. Conclusion City staff has discussed this with the City’s EAW consultant at WSB. Neither city staff nor WSB staff feel this project should require an EAW based on the information below.  Based upon a review of available aerial photographs, this project does not meet the requirements for a mandatory EAW under Minnesota Administrative Rules, 4410.4300, Subp. 25, Marinas, as the marina expansion from 2018 (44,129 square feet of surface area) to 2025 (63,829 square feet of surface area) represents a total increase of 19,700 square feet of surface area, which is less than the 20,000 square feet needed for a mandatory EAW.  The Three-Year Lookback Rule identified in Minnesota Administrative Rules 4410.4300, Mandatory EAW Categories, Subp. 1. B. exempts this marina expansion from a mandatory EAW as the marina expansion has been in place for more than three years.  The acquisition of the adjacent parcel that had historically been utilized as a private docking facility for five to six watercraft and incorporation of the previous docking facility into the subject property’s commercial marina, along with Charlie’s on Prior private investment in shoreline restoration on the subject property, has improved the environmental conditions along the shoreline of Upper Prior Lake. City staff is recommending the City Council, as the RGU, approves the attached resolution determining the commercial marina expansion at the subject property does not meet the threshold for environmental review per Minn. Rule 4410.4300, Subp. 25 and the City of Prior Lake will not order an environmental review/EAW. FINANCIAL IMPACT: No financial impact. ALTERNATIVES: 1. Motion and second to approve a resolution determining a commercial marina expansion does not meet the threshold for environmental review per Minn. Rule 4410.4300, Subp. 25. Item 9B Page | 3 2. Motion and second to deny the resolution determining a commercial marina expansion does not meet the threshold for environmental review per Minn. Rule 4410.4300, Subp. 25 and order an EAW be completed. 3. Provide direction to staff and continue discussion at a future meeting. ATTACHMENTS: 1. Resolution 2. 2007 DNR Transferred – Amended Public Waters Works Permit 3. 2008 DNR Amended Permit 4. Aerial Photos 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 26-___ A RESOLUTION DETERMINING A COMMERCIAL MARINA EXPANSION DOES NOT MEET THE THRESHOLD FOR ENVIRONMENTAL REVIEW PER MINN. RULE 4410.4300, SUBP. 25 Motion By: Second By: WHEREAS, the Minnesota Department of Natural Resources (“DNR”) issued a Transferred- Amended Public Waters Work Permit #1988-6299 to JKL Docks, LLC (Captain Jack’s) on April 5, 2007 related to a commercial marina on Upper Prior Lake at 3950 Green Heights Trail SW, Prior Lake, Minnesota 55372 (PID 251020221) (“Subject Property”); and WHEREAS, the DNR approved an amendment to Permit #1988-6299 on April 10, 2008 related to a 20-foot dock extension (“Amended Permit”); and WHEREAS, there is a discrepancy on the Amended Permit as the letter provided by the DNR identifies a previously approved City of Prior Lake Conditional Use Permit and previous DNR permits allowing for a total of 81 boat slips; however, Attachment A of the Amended Permit identifies a dock configuration which provides mooring spaces for approximately 98 watercraft; and WHEREAS, on April 10, 2015, Lakers Holdings LLC dba Charlie’s on Prior (hereinafter “Charlie’s on Prior) purchased the Subject Property; and WHEREAS, in the spring of 2018, Charlie’s on Prior installed a commercial marina occupying approximately 44,129 square feet of surface area for the mooring of approximately 76 watercraft; and WHEREAS, in the spring of 2020, Charlie’s on Prior installed a commercial marina occupying approximately 45,040 square feet of surface area for the mooring of approximately 76 watercraft; and WHEREAS, on September 29, 2023, Lakers Holdings LLC purchased an adjacent parcel to the east of the Subject Property legally described as Lot 19, Green Heights First Addition (”Adjacent Parcel”); and WHEREAS, prior to the Adjacent Parcel being acquired by Charlie’s on Prior, the Adjacent Parcel had historically been utilized as a private docking facility for five to six watercraft; and WHEREAS, on December 16, 2024, Charlie’s on Prior recorded a Quit Claim Deed (Doc. No. T286558) to combine the Adjacent Parcel with the Subject Property to extend the shoreline length by approximately 70.85 feet; and WHEREAS, in the spring of 2024, Charlie’s on Prior installed a commercial marina occupying approximately 55,742 square feet of surface area for the mooring of approximately 97 watercraft; and 1 WHEREAS, In the spring of 2025, Charlie’s on Prior installed a commercial marina occupying approximately 63,829 square feet of surface area for the mooring of approximately 97 watercraft; and WHEREAS, in 2026, Charlie’s on Prior applied to the DNR for an amendment to the previously approved Amended Permit to account for the additional shoreland added with the combination of the Adjacent Parcel to the Subject Property, to resolve the discrepancy between the identified number of boat slips and the dock configuration exhibit on the Amended Permit, and to clarify the dock dimensions, configuration and number of approved boat slips; and WHEREAS, Minnesota Administrative Rules 4410.4300, Mandatory EAW Categories, identifies projects that require an environmental assessment worksheet (“EAW”) based on meeting or exceeding a specific threshold; and WHEREAS, Minnesota Administrative Rules, 4410.4300, Subp. 25, Marinas, states, for construction or expansion of a marina or harbor that results in a 20,000 or more square foot total or a 20,000 or more square foot increase of water surface area used temporarily or permanently for docks, docking, or maneuvering of watercraft, the local governmental unit is the RGU \[responsible government unit\]; and WHEREAS, Minnesota Administrative Rules 4410.4300, Mandatory EAW Categories, Subp. 1. B. states, if the proposed project is an expansion or additional stage of an existing project, the cumulative total of the proposed project and any existing stages or components of the existing project must be included when determining if a threshold is met or exceeded if construction was begun within three years before the date of application for a permit or approval from a governmental unit for the expansion or additional stage but after April 21, 1997, except that any existing stage or component that was reviewed under a previously completed EAW or EIS need not be included (“Three-Year Lookback Rule”); and WHEREAS, the DNR will not issue an amended dock permit for Charlie’s on Prior until the City of Prior Lake, as the RGU, makes an official environmental review determination based on Minnesota Rules 4410.4300, Subp. 25. 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. Based upon a review of available aerial photographs, the Prior Lake City Council determines this project does not meet the requirements for a mandatory EAW under Minnesota Administrative Rules, 4410.4300, Subp. 25, Marinas, as the marina expansion from 2018 (44,129 square feet of surface area) to 2025 (63,829 square feet of surface area) represents a total increase of 19,700 square feet of surface area, which is less than the 20,000 square feet needed for a mandatory EAW. 3. The Three-Year Lookback Rule identified in Minnesota Administrative Rules 4410.4300, Mandatory EAW Categories, Subp. 1. B. exempts this marina expansion from a mandatory EAW as the marina expansion has been in place for more than three years. 4. The acquisition of the Adjacent Parcel that had historically been utilized as a private docking facility for five to six watercraft and incorporation of the previous docking facility into the Subject Property commercial marina, along with the Charlie’s on Prior’s private investment in shoreline restoration on the Subject Property, has improved the environmental conditions along the shoreline of Upper Prior Lake. 2 5. As the RGU, the Prior Lake City Council determines the commercial marina expansion at the Subject Property does not meet the threshold for environmental review per Minn. Rule 4410.4300, Subp. 25. The City of Prior Lake will not order an Environmental Assessment Worksheet or additional environmental review to be completed for the commercial marina at the Subject Property. 6. The DNR may issue the amended dock permit for Charlie’s on Prior. rd Passed and adopted by the Prior Lake City Council this 23 day of June 2026. VOTE Briggs Braid Churchill Lake Hellier Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Jason Wedel, City Manager 3