Otsego Municipal Board Filings I-55 OrderI-55 Otsego
BEFORE THE MUNICIPAL BOARD
OP THE STATE OP MINNESOTA
STATE 0)MINNESOTA
DEPARTMENT OF 51AIE
FINO
UEC24 1990
John W.Cazey
Kenneth P.Bette
shirley J.Mihelich
Michelle Bogenrief
Wes Wittkowski
chair
commissioner
Vice Chair
Ex-Officio Member
Ex-Officio Member
ZN THB MATTBR OP THE PETITION POR THE )
INCORPORATION OP THE TOWN OP OTSEGO )
PURSUANT TO MINNESOTA STATUTES 414 )
AMENDED
P1NDINGS OP PACT
CONCLUSIONS OP LAW
AND ORDER
The above-entitled matter came on for hearing before the
Minnesota Municipal Board pursuant to Minnesota Statutes 414,as
amended on August 15,1990 in the Town Hall of the Town of Otsego,
Minnesota.The hearing was oonduoted by Terrence A.Merzitt,
Executive Director,pursuant to Minnesota Statutes 414.01,
Subdivision 12.Also in attendanoe were John W.Carey,chair,
Kenneth P.Sette,Vice Chair,and County Commissioners Wes
Wittkowski and Michelle Bogenrief,Ex-officio members of the Board.
The Town of Otsego appeared by and through William Radswill,
Attorney at Law.There were no other appearances of record.
Testimony was heard and records and exhibits were received.
After due and careful consideration of all evidence,together
with all records,files and proceedings,the Minnesota Municipal
Board hereby makes and files the following Findings of pact,
Conclusions of Law,and Order.
FINDINGS OP PACT
1.On May 22,1990 a copy of a petition for incorporation
t
An Equal Opportunity Employer Phone:(612)296-2428
STATE OF MINNESOTA
MUNICIPAL BOARD
165 Metro Square Building
121 East Seventh Place
St.Paul,Minnesota 55101-2142
December 20,1990
Seoretary of State
c/o Donna ScottStateOffioeBuildingSt.Paul,MN 55155
Re:Munioipal Board Dooket Number:I-55 Otsego -AMENDED ORDER
The amendment to the order of the Minnesota Munioipal BoardmakesnochangesinthepopulationoftheCityofOtsego.
Official date of the Amended Order is December 18,1990.
Ark ~./I ion4,4-Patricia D.LundyAssistantDirector
PDLtry
Enclosure
cc:Jerome P.Silkey,Asst.Dir.Local Govrt Services Division
Department of Revenue
10 Riverpark Plasa7thPloor
R.Thomas Gillaspy,Ph.D.State Demographer
200 Capitol Square Building STATE OF MINNESOTA
DEPARTMENT OF STATE
FILED
DEC84 1990
4Lda
oF State
hy the Otsego Town Board was file4 with the Minnesota Municipal
Board.The petition contained all of the information required hy
statute,including a description of the territory for
incorporation,which is as follows:
Sections 10 lip 12 13'4'5@ 22s 23'4w 25@ 26 27w34,35,and 36,Township 121,Range 24,Wright County,Minnesota.
Sections 7,10,11,14,15,16,17,18,19,20,21,22,23,25,26,27,28,29,30,31,32,33,34,the NorthHalfoftheNortheastQuarter,the North Half of the
Northwest Quarter,the Southwest Quarter of the NorthwestQuarteran4theWestHalfoftheSouthwestQuarterof8ection35,Government Lot 1,Government Lot 2,
Government Lot 3,the Northwest {}uarter of the Northwest
Quarter,the East 20 acres of the South 60 rods of theSoutheastQuarteroftheSoutheast{}uarter and that partofsaidSoutheastQuarteroftheSoutheast{}uarter lyingSouthoftheNortherlylineofInterstate'Highway No.94ofSection36,Township 121,Range 23,Wright County/Minnesota.
Nore particularly described as follows:
Sections 7.10 .11 .14 .15 .16 .17 .18 .19 .20 .21 .22 .23 .25 .26.27.28.29,30.31.32~33 34,35 and 36,Township 121,gange 23,Wrimht County,Minnesota.
ALSO:
Sections 10,11,12,13,14,15,22,23,24,25,26,27,34 andtheNorthHalfoftheNortheastQuarter,the North Hair or theNprthwestQuarter,the Southwest Quarter of the Northwest QuarterandtheWestHalfoftheSouthwestQuarterofSection35,Government Lot 1,Government Lot 2.Government Lot 3,theNorthwest{}uarter of the Northwest Quarter.the East 20 acres ofthesouth60rodsoftheSoutheastQuarteroftheSoutheastQuarterandthatpartofsaidSoutheastQuarteroftheSoutheastQuarterlyingsouthofthenortherlylineofInterstateHighwayNo.94 of Section 36,all in Township 121,Range 24,WrightCounty,Minnesota.
2 ~Due,timely and adequate legal notice of the hearing was
puhlished,served and filed.
3 ~The area subject to incorporation (hereinafter referred
to as Otsego)is unincorporated,an4 approximately 19,023 acres in
sise inolu4ing platted an4'nplatted lands.Otsego abuts the
Cities of Elk River,Dayton,and Albertville and the Towns of
Montioello,Eig Lake,Hassen and Prankfort.
Otsego has soils of the Hayden-Dundas Peat Association,
the Hayden-Lester-Peat Association,and the Esterville-Hubbar4-
Wadena Association.
The latter two types of soils are where the majority of
development has occurred,and both types oi soils have moderate to
severe limitations for development thzough the use of on-site
septic systems.
5 ~Otsego is adjacent to the Mississippi River.Also
located within Otsego are Rice Lake an4 an unnamed lake located at
Odell and 67th Street,both aze designated as protected by the
Department of Hatural Resources,hereinafter referred to as DER.
6.The general topography of Otsego is characterised as
fairly hilly in the southeastern an4 northwestern portions and
fairly level throughout the rest of the town.
7.Otsego has a population of approximately 5,835 base4 on
the Otsego Comprehensive Plan inventory complete4 in February,
1990.The Minnesota State DemographerIs Office presently estimates
Otsego's population as 6,i72.OtsegoIs population in 1970 was
1,526,in 1980 it was 4,769 and it is projected to be 6,310 by
1995,6,780 by 2000 and 7,900 by 2010.The population grew by an
estimated 1,066 people from 1980 to 1990 and approximately 6,755
from 1960 to 1990
8.Otsego has the approximate amount of land in the
following categoziesc 1i871 acres in residential useg 169 acres
in institutional use,49 acres in commercial use,no industrial
use,15,085 acres in agricultural use,552 acres in vacant lands,
18 acres in railroad use,780 aores in public rights-of-way,and
499 acres in lakes and rivers.
9.Otsego presently provides its residents with storm sewer,
soli4 waste collection and 4isposal,street improvements and
maintenance inoluding snowplowing,administrative services,fire
protection through a contraot the City of Elk River and City of
Albertville Pire Departments,and police proteotion through .a
contract with the Wright County Sheriff's Office.
10.Otsego presently has no central sanitary sewer or water
systems.Both services aze provide4 by private individual systems.
The River Bend Mobile Home park near Highway 101 an4 River Road has
a econsolidated"semi-public private sewer systems the treatment
facility is maintained by the park owner,although Otsego has some
joint responsibilities for the system's operation legally assigned
by the Minnesota pollution Control Agency.
Otsego has ha4 its engineer commence a preliminary study
of the sanitary sewage system needs of Otsego.
The City of Elk River has indicated a willingness to
contract with Otsego over the next ten years for Elk River~s excess
capacity of 300,000 gallons of flow of sewage per day.Prior to
the conclusion of the ten years it is anticipate4 that new studies
will have been completed focusing on the most economical and
efficient method of serving Otsego.Access to this oapaoity can
be utilised by a sewer line extended either under the river or
using the county 42 bridge located in the northeastern portion of
Otsego,and immediately southwest of Elk River.The cost of a lift
station an4 force main under the Mississippi River is estimated at
$100,000.It is antioipate4 that between 1,000 to 1,500 homes will
be servioe4 by this oapacity.There are no specifio plans yet as
to the distribution of this service.
11.Presently Wright County,hereinafter referred to as «the
county,«provides land use controls for Otsego.
The County has a soning ordinance,subdivision
regulations,capital improvements program and bu4get,fire code/
shoreland ordinance,floodplain ordinance,wild and scenic rivers
ordinance,an4 sanitation ordinanoe.
The County adopte4 a comprehensive land use plan in May,
198S ~
The County planning and land use focuses on development
in rural settings.While the land use plan is sufficient for rural
settings,compliance with the plan in Otsego tends to create
problems for an urbanised or urbanising area.
Approximately 10 to 1A of the County<s work in building
permits and code enforcement occur in Otsego.Since Otsego is
urbanizing and the County code refleots a rural
perspective,approximately 60-70%of the co4e violations occur in
Otsego.
12.Otsego has an offioial map and a capital improvements
program and budget.The official map was adopted December,1985
and the capital improvements program and budget were adopted in
1990 ~
Otsego contracts for the services of a planner.
Otsego now requires all plats in the town to include a
split of each lot,so that the lot can be divided if sanitary sewer
is available.Building is limited to one side of the lot.Many
of the lots previously subdivided in the town are not able to be
subdivided.
Zoning an4 Subdivision Ordinances and a comprehensive use
plan are prepared for otsego,and are in the process of heing
adopted and implemented.Otsego has held a hearing for the
adoption of the State Building Code.
Municipalities have the authority to charge developers
user fees to offset the cost of evaluation of zoning or subdivision
requests.
If Otsego is incorporate4,it may receive approximately
$5,000 from DER for the development of shoreland ordinances.
13.Otsego has experienced 4evelopment pressures within the
last ten to twenty years,changing the basio character of parts of
Otsego from rural to urban an4 suburban.
The urbanisation of portions of Otsego have created
pressures on the un4eveloped portion of the town,which presently
should remain in agricultural production.The use of land controls
suite4 for urban development is viewed as a method to protect the
agricultural portion of Otsego while shaping and controlling the
development of the urban or suburban portion of Otsego.
18.Otsego is served by Monticello School District 882 in the
northwestern portion of the town,St Michael-Albertville school
District 885 primarily in the southern central portion of the town,
and Elk River School District 728 in the remainder of the town.
Distziot Ho.728 serves the majority of Otsego an4 serves the vast
majority of the urban and suburban portions of Otsego.
District Mo.728 is oonsi4ering construoting a middle
school and/or an elementary school in the northeastern portion of
Otsego.The location is based on the population increase and the
desire to locate buildings so that they can be accessed most
efficiently by the school~s population that is being served.
15.Otsego has several business establishments located
primarily along County Road No.39 an4 along State Highway No.101.
The number of suoh establishments has steadily increased in the
past few years.
16.Otsegols population,assessed valuation,and residential
and oommeroial construction is anticipated to continue to grow.
17.There are approximately 9'miles of interstate,county/
an4 township roads in Otsego.Approximately one half of Otsego's
roads are gravel an4 the remainder are sealed.
It is antioipated that State Highway Number 101 will be
upgraded from a two-lane to a four-lane divided highway in 1994.
Highway 101 is locate4 in the eastern portion of Otsego.It
provides access from Elk River into the Hinneapolis/St.Paul
metropolitan area.
18 'etween 1984 and 1988 traffic oounts on various streets
throughout Otsego have generally increased.Some counts have
increased by as muoh as over 5,500 cars per day.The traffic count
increase corresponds generally to the population increase within
Otsego.It is oalculated that the increase in traffic volume is
approximately 7.5%over that four-year period.
Interstate Highway 94 an4 Highway 101 are classified as
primary arterials allowing for high speed access from otsego to the
metropolitan area.
19.The population of Otsego tends to be a bedroom community
8
with employment outside of Otsego for most residents,resulting in
increasing transit needs.
20.The fire insurance rating for Otsego is 9.
21.There aze presently no known pollution sources,but given
the soil conditions and the development within particularly the
northeastern portion of Otsego,it is anticipated that without
central sanitary sewer,there will be negative environmental
impacts.Surface water runoff has flooded areas,causing problems
with the performance of the on-site septic systems.
22.The Cities of Elk River,Dayton and Albertville have
indicated no opposition to the purposed incorporation and have
in4ioated no willingness to annex portions of Otsego and service
them with the necessary municipal services.The uzbanised portions
of Otsego are not ad]acent to either Dayton or Albertville.The
Town of Monticello is already an oversise4 township.
23.Otsego~s assessed valuation for 1990 is approximately
$108,923,100.The assessed valuation for the platted and unplatted
areas respectively is approximately 568,596,100 an4 $60,327,000,
respectively.
24.The 1990 Tax Rate is as followers
The County:21.314
School District 6728.56.013
School District 8882:60.861
School District 6885:67.652
Otsegos 16 '56
25.The total bonded indebte4ness for Otsego is $540,000.
Otsego presently has over $1,300,000 in the hank.
25 'he levy by otsego is increasing,as is its assessed
valuation.
27 'tsego has expressed an interest in creating an
Urban/Rural Taxing Distriot if Otsego is incorporate4 so that the
taxes on the agricultural property are not burdensome,as municipal
services are provided where needed.
28.Otsego is projected to receive an estimated $250,000 to
300,000 in Minnesota State Highway Aids if incorporated.
Otsego presently allocates approximately 70%of its
budget for road and bridge matters.The infusion of those Aids
would not reduce that portion of the budget to $0,but it would
reduce some of Otsego~s present budget oosts.
29.If Otsego was incorporated,it would be able to keep the
park dedication fees which average approximately $13,000 a year.
This money coul4 be use4 for the acquisition or improvement of
local parks.Presently,park dedication fees are use4 by the
County for improvement of parks with a more county wide impact.
30.If Otsego is incorporated it will be eligible for Pederal
Highway funds in the area of approximately $20,000 per year.The
County aids would be reduced.
31.The name of the proposed City is Otsego.
32.The proposed city plan of government suitable for the
area to be incorporated is Optional plan ehe with a city council
of five members,oonsisting of four oounoilpersons an4 the mayor.
The maYor's term woul4 be two years long.
-10
33.Otsego's population is distributed enough throughout the
town so that the most suitable method of electing all four council-
persons is an at-large vote of Otsego's residents.The Town Board
favors this method of electing the counoilpersons.
34.There is now and will continue a need for ever increasing
governmental service in Otsego.The city form of government will
be better abls to protect the health,safety and welfare of the
Otsego residents.
35.Otsego can be best served as one city in the matter of
community planning,installation of thoroughfares,street
systems'ewer
and water systems,fire and police protection,recreational
an4 other vital and necessary community services.
Division of Otsego into a smaller community and the
attaching of portions of the town to other towns,may reduce the
population level needed to cgxalify for Minnesota State Highway
Aids.
36.The town form of government in Otsego is inadecpxate to
cope with the problems of urban and suburban growth and development
within the town and does not efficiently and eoonomically provide
the necessary services for the residents.
CONCLUSZONS OF LAW
1.The Minnesota Municipal Boar4 duly acquired and now has
jurisdiction of the within proceeding.
2 ~Incorporation is in the best interests of the Town of
Otsego.
3 ~Municipal government is presently reguired to protect ths
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public health,safety,and welfare in Otsego.
4.The Town of Otsego has portions of it that are now urban
or suburban or about to become so and there is no adjacent
municipality capable of providing the necessary services to those
portions oi the town.
5.The best interests of the area will be furthered by
incorporation.
6.The Minnesota Municipal Board should issue an order
approving the incorporation,and ordering an election of new
municipal officers.
0 R D B R
1.IT IS HEREBY ORDERED:That the Town of Otsego,more
particularly described in Pindings of Fact 1 herein,be and the
same hereby is incorporated into a city.
2.IT IS FURTHER ORDERED:That the city shall be named
Otsego.
3.IT IS FURTHER ORDERED>That the plan of government for
the new City of Otsego shall be Optional Plan ehe.The city
council shall have five members,consisting of four councilpersons
and the mayor.The mayor's term shall be two years.
4.IT IS FURTHER ORDERED:That the City of Otsego shall
elect all of its councilpersons and mayor at-large,and that there
are no wards within the City of Otsego.
5.IT IS PURTHER ORDERED:That the ordinances of the Town
of Otsego as well as the Land Use and Planning Controls of the
County of wright shall continue in effect within the former
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boundaries of the Town of otsego until repealed or replaced by the
governing body of the new City of Otsego.
6.ZT ZB FURTHER ORDERED:That the population of the new
City of Otsego is 6,472.
7.ZT IS FURTHER ORDERED:That all license privileges be
maintained as permitte4 by the Town inclu4ing the number of liquor
licenses already authorised by the State of Minnesota until
repealed by the governing body of the new City of Otsego.
8.IT IS FURTHER ORDERED:That upon incorporation all
money,claims or properties including real estate owned,held or
possessed by the former town,an4 any proceeds or taxes levied by
such town,collected and uncollected,shall become the property of
the new City of Otsego with full power and authority to use and
dispose of for such public purposes as the oouncil deems hest
subject to claims of the creditors.This will inolude cash
reserves/fund balances of the town and all public property an4
equipment held by the town.
9.ZT ZS FURTHER ORDERED:That the town~s outstanding
indebtedness,prior to incorporation,will be the financial
obligation of property owners within that former tax district.
10 'T ZS FURTHER ORDERED:That the first election of
officers for the new City of Otsego shall be held on the 6th &ay
of November,1990.Any person eligible to vote at a township or
municipal election within the area of the new municipality is
eligible to vote at suoh election.
11.ZT ZS FURTHER ORDERED:That the hours of the election
shall he from 7:oo a.m.to S:co p.m.
12.ZT IS PURTHER ORDEREDs That the polling place an4
election judges for the election of officers shall he as follows:
Polling Places The Town Hall of the Town of Otsego
Blection Judges and Alternate Election Judges:Elaine Beatty,
Sharon Berning,Joy Swenson,Judy Silverness,June Penstrag
Arlene Lindenfelser,Kelly Bistodeau,Germaine Beaudry,Judy
Ro&en,Marion Alexander,Olive Holies,Judy Blesi,J'ean
Shanyo,Ju4y Vetch,Julia Berning,Catherine Sa4owski,Kathy
Lewis,Norm preske,Karen pouliot,JoAnn Martin,Judy Hudson,
Judy Holsta4,David Cecka,and Diane Fearson
13.ZT ZS PURTHER ORDERED>That the Acting Clerk for
election purposes shall he J'erome Ferrault.
14.ZT ZS FURTHER ORDERED<That the Acting Clerk shall
prepare the official election ballot.Affidavits of candidacy may
he file4 hy any person eligible to hold municipal office not more
than four weeks and not less than two weeks before the election.
The two persons receiving the two highest number of
votes for councilperson,will he elected to terms ending January
1,1995.The persons receiving the third an4 fourth highest number
of votes for councilperson will he elected to terms ending January
1,1993.The ballot shall he compose4 so that each voter shall he
permitted to vote for four persons for councilpersons at-large and
one person for mayor.
ln all other respects,the election shall he conducted
in conformity with the provisions of the Minnesota Statutes
-14-
concerning the conduot of municipal eleotions insofab as
applicable.
15.ZT ZS FURTHER ORDERED:That the incorporation shall be
effeotive on November 15,1990.
16.IT ZS FURTHER ORDERED.:That the first meeting of the
city of Otsego Council shall be called by the mayor in accordance
with the procedures met forth in Minnesota Statutes as soon as
praoticable.
17 'T ZS FURTHER ORDERED:That the Minnesota Municipal
Board retains jurisdiction for the purpose of determining the
population of the newly incorporated municipality,if the present
'population determination is found to be incorrect and for the
purpose of conducting a supplementary hearing to be held by the
board to determine whether a special levy should be authorized to
meet increased costs due to the incorporation.
18 'T IS FURTHER ORDERED:That the effective date of this
order is september 21,1990.
IT IS FURTMER ORDERED:That the effective date df this amor u:Il
order is December 18.1990.
Dated this 21st day of September,
1990 ~
MINNESOTA MUNICIPAL BOARD
165 Metro Square BuildingStFaultMH5501~~
~~
SRtWKerrenceA.M rzitt
Executive Director
Amended Order Dated this 18th day of December,
1990.
MINNESOTA MUNICIPAL BOARD
165 Metro Square Building
51.5 1,115 55101
JSNmi 0,
Executive Director
Z-BS Otsego
MEMORANDUM
Zn approving the incorporation,the Board notes that the
witnesses at the hearing affirmed and reaffirmed the petitioner's
desire to create a Rural Service Taxing District for those portions
of the new City of Otsego which remain in agricultural production.
The Board is confident that those affirmations will he put into
practice.
The Board is also confident that the new City of Otsego
will not only develop a land Use plan which will address the issues
that have oreated long-standing concern,hut will also implement
the plan so that the document is an integral part of the on-going
4 1 p at ot th ctty f at g~f Z(+g