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Item 4.2 Zachman Meadows Enviromental Assessment3601 Thurston Avenue Anoka, MN 55303 763.231.5840 TPC@PlanningCo.com 1 MEMORANDUM TO: Otsego Planning Commission FROM: D. Daniel Licht DATE: 17 April 2025 RE: Otsego – Zachman Meadows; Environmental Assessment Worksheet TPC FILE: 101.02 BACKGROUND The City Council approved a preliminary plat for Zachman Meadows on 22 April 2024 consisting of development of 159 single family homes and 222,000 square feet of industrial building space on 67.46 acres located at the north of 70th Street and east of Kadler Avenue. The final plat for Zachman Meadows was approved by the City Council on 12 August 2024. The developer has acquired an additional 12.12 acres north of Zachman Meadows and is planning a second phase of the development with 44 additional single family dwellings. The combination of the approved Zachman Meadows with the second phase being planned by the same developer exceeds the thresholds for mandatory Environmental Review through preparation of an Environment Assessment Worksheet as set forth by Minnesota Rules Section 4410.4300, Subp. 32. The Planning Commission will hold a public hearing at their meeting in 21 April 2025 to consider the Environmental Assessment Worksheet. Exhibits: EAW dated March 11, 2025 (https://www.otsegomn.gov/299/Public-Notices) Responses to Comments, Findings of Fact and Conclusions, and Record of Decision ANALYSIS Environmental Review is an information gathering process to assess the potential environmental effects of a proposed development and recommend avoidance or mitigation measures to be implemented during the development process. Environmental Review is not an approval process, but the information gathered is meant to inform decision making for zoning and subdivision actions and governmental permitting. Environmental Review allows the City and government agencies involved in the development review process to make more informed decisions on projects and gives the public an opportunity to participate and provide input to decision makers. Item 4.2 2 The requirements for Environmental Review are laid out in Minnesota Statute Chapter 116D and Minnesota Rules Chapter 4410, which describes:  when Environmental Review is required  who conducts the Environmental Review  procedures for conducting the Environmental Review, and  criteria that must be used for making decisions for Environmental Review documents The developer prepared an Environmental Assessment Worksheet that has been reviewed and approved by City Staff. In accordance with Minnesota Rules 4410.1500, the Environmental Assessment Worksheet was distributed to persons and agencies on the official Environmental Quality Board distribution list and published on the City website. A notice of Environmental Assessment Worksheet availability was published in the Environmental Quality Board Monitor on 18 March 2025, initiating a 30- day comment period. A press release was submitted to the City’s official newspaper, the Elk River Star News, and published on 15 March 2025. The comment period ended on 17 April 2025. The City received written comment letters from _______________ agencies, which are attached. None of the comments recommended preparation of an Environmental Impact Statement (EIS). Responses to comments are generally confined to substantive issues that “address the accuracy and completeness of the material contained in the Environmental Assessment Worksheet, potential impacts that may warrant further investigation before the project is commenced, and the need for an Environmental Impact Statement on the proposed project.” (Minnesota Rules Section 4410.1600). Some comments included general remarks, recommendations, or permit requirements. Such comments are noted for the record. Minnesota Rules Section 4410.1700, Subp. 2 requires the City to determine the need for an Environmental Impact Statement within 30 days of the close of the comment period. The developer has prepared a response to the comments received regarding the Environmental Assessment Worksheet and findings of fact regarding the need for preparation of an Environmental Impact Statement as required by Minnesota Rules Section 4410.1700, Subp. 7. The draft responses have been reviewed by City staff and City staff recommends approval. Upon approval by the City Council, the Environmental Assessment Worksheet Comment Responses will be forwarded to the respective agencies, the Environmental Quality Board Distribution List and the Environmental Quality Board to complete the Environmental Assessment Worksheet process. A declaration that an Environmental Impact Statement is not to be required does not entitle the developer to the proposed project. The proposed development remains subject to approval of applications including, but not limited to, a Zoning Ordinance amendment, preliminary plat, and final plat. The developer is working to complete the information required for these applications for consideration at future Planning Commission and City Council meetings. A public hearing with notice mailed to surrounding property owners within 350 feet is required for these applications, which will be conducted by the Planning Commission. RECOMMENDATION City staff recommends that the Planning Commission find that the Zachman Meadows development and planned second phase does not have potential significant environmental effects and that preparation of an Environmental Impact Statement not be required. 3 POSSIBLE ACTIONS A. Motion to recommend the City Council adopt findings that the Zachman Meadows development does not have potential significant environmental effects in accordance with recommendations of the Environmental Assessment Worksheet. B. Motion to table. c. Adam Flaherty, City Administrator/Finance Director Audra Etzel, City Clerk Ron Wagner, City Engineer David Kendall, City Attorney Responses to Comments, Findings of Fact and Conclusions, and Record of Decision for Zachman Meadows Environmental Assessment Worksheet Responsible Governmental Unit (RGU) Proposer City of Otsego 13400 90th St. NE Otsego, MN 55330 D. Daniel Licht Phone: (763) 441-4414 ddl@planningco.com Landform, on behalf of Boyd Dollansky, LLC 105 5th Ave S, Suite 513 Minneapolis, MN 55401 Kendra Lindahl Phone: (612) 638-0225 klindahl@landform.net TABLE OF CONTENTS INTRODUCTION ........................................................................................................................................... 1 EAW NOTIFICATION, DISTRIBUTION, AND COMMENT PERIOD ............................................................ 1 COMMENTS RECEIVED .............................................................................................................................. 1 RESPONSES TO COMMENTS .................................................................................................................... 1 RECORD OF DECISION .............................................................................................................................. 2 Appendix A: Comments Submitted to City of Otsego Appendix B: City of Otsego Negative EIS Need Declaration Resolution Appendix C: Zachman Meadows Environmental Assessment Worksheet Zachman Meadows EAW 1 Findings of Fact and Conclusions, Response to Comments, and Record of Decision INTRODUCTION Boyd Dollansky, LLC (Proposer) proposes to expand an existing mixed-use development in Otsego (RGU). The project will include 159 single family homes and 222,000 sq. ft. of commercial space for car condos on 67.46 acres. The first portion of the project was approved in 2024 and is actively under construction. Phase two of the project is the addition of 12.12 acres north to the approved development and will add 44 new single-family villa homes. The Project would include development on the current agricultural land and a portion of wetlands and woodland. Construction of the project is ongoing with completion anticipated in the Fall of 2026 for both Phase one and Phase two. EAW NOTIFICATION, DISTRIBUTION, AND COMMENT PERIOD In accordance with Minnesota Rules 4410.1500, the Environmental Assessment Worksheet (EAW) was completed and distributed to persons and agencies on the official Environmental Quality Board (EQB) distribution list. The EQB published notice of availability of the EAW in the EQB Monitor on March 18, 2025, initiating a 30-day comment period that concluded on April 17, 2025. A public notice was published in the official City newspaper, the Elk River Star News. Appendix A includes copies of the comment letters and Appendix C includes the EAW. COMMENTS RECEIVED The following comment letters or emails were sent to the City of Otsego: Email 1: Minnesota Department of Transportation Email dated March 13, 2025, from Tom Cruikshank, Principal Planner, District 3 Email 2: Minnesota Pollution Control Agency Email dated April 9, 2025, from Chris Green, Project Manager Environmental Review RESPONSES TO COMMENTS The following information and clarifications are provided in response to all EAW comments received during the 30-day comment period. Comments responses are provided in italicized text. Email 1: Minnesota Department of Transportation Email to indicate they have no comments on the EAW. Email 2: Minnesota Pollution Control Agency Comment 1: Wastewater: A wastewater design flow estimate is provided for the 159 residential units identified for the Project. A wastewater design flow estimate should also be provided for the proposed commercial development type which is identified as a 222,000 sq. ft. building area. Response: Noted. The wastewater projections for the commercial buildings was erroneously left off the initial table and calculations. The corrected calculation is as follows: Zachman Meadows EAW 2 Findings of Fact and Conclusions, Response to Comments, and Record of Decision - 220,000 SF (Total SF) / 6950 SF (SAC) = 31.65 = 32 SAC - 1 SAC= 175 GPD - Total Commercial Flow from Project = 32 x 175 = 5,600 gal/day Total project= 27,825 (Residential) + 5,600 (Commercial) = 33,425 gal/day (or 0.0334 MGD). This number, 0.0334 MGD is consistent with the Comprehensive Plan and does not exceed the existing capacity for the city. Comment 2: Watershed. With the impacts to wetlands, the Section 404 with the Army Corps is mentioned. If a Section 404 review is needed, the MPCA 401 Certification will also be required. Response: Noted. Phase one impacts have been processed and approved through proper agency permits and processes. Phase two may have potential impacts, and if so, then the appropriate permits will be applied for. This may include a MPCA 401 certification and a U.S Army Corp of Engineers Section 404 permit. Comment 3: Watershed. With the proximity to the wetlands, additional mitigation of stormwater will help ensure that landowners do not have flooding issues. Response: Thank you, this comment has been noted and added to design consideration. RECORD OF DECISION Based on the EAW, the Response to Comments and the Findings of Fact, City of Otsego concludes the following: 1. All requirements for environmental review of the Project have been met. 2. The EAW and the permit development processes related to the Project have generated information which is adequate to determine whether the Project has the potential for significant environmental effects. 3. Areas where potential environmental effects have been identified have included proper mitigative responses to be included within the final design of the Project. Mitigation will be required to be provided where impacts are expected to result from Project construction, operation, or maintenance. Mitigative measures will be required to be incorporated into Project design and have been or will be coordinated with state and federal agencies during the applicable permit process. 4. Based on the criteria in Minnesota Rules part 4410.1700, the Project does not have the potential for significant environmental effects. 5. City of Otsego makes a “Negative Declaration;” and 6. An Environmental Impact Statement (EIS) is not required. Zachman Meadows EAW C Findings of Fact and Conclusions, Response to Comments, and Record of Decision Appendix A: Comment Letters From:Cruikshank, Thomas (DOT) To:D. DANIEL LICHT; Kendra Lindahl, AICP Cc:Lind, Katherine (DOT); Erickson, Tad (DOT); Voss, Steven (DOT) Subject:MnDOT Reply_RE: Zachman Meadows EAW Date:Thursday, March 13, 2025 8:54:47 AM Attachments:image001.png image002.png image003.png image004.png image005.png image006.png image007.png image008.png image009.png D. Daniel and Kendra, MnDOT District 3 staff received this notice of an EAW for the Zachman Meadows. This project does not appear to have a direct impact on MnDOT highways or rights-of-way, thus we would not have any comment to provide on the EAW. Please reach out if you feel otherwise or need any other assistance. Thanks, Tom Cruikshank Principal Planner | District 3 3725 12th Street North, St. Cloud, MN 56303-2107 Phone: (320) 223-6526 I Cell: (320) 267-9859 Email: thomas.cruikshank@state.mn.us From: Lind, Katherine (DOT) <Katherine.Lind@state.mn.us> Sent: Thursday, March 13, 2025 8:38 AM To: Cruikshank, Thomas (DOT) <Thomas.Cruikshank@state.mn.us>; Voss, Steven (DOT) <steve.voss@state.mn.us>; Erickson, Tad (DOT) <Tad.Erickson@state.mn.us> Subject: FW: Zachman Meadows EAW The following Environmental Assessment Worksheet (EAW) has been forwarded for your District’s possible review and comment. The project website is here: Public Notices | Otsego, MN Any transportation or MnDOT right of way concerns the District may have should be provided directly to the Responsible Governmental Unit (RGU) indicated on the transmittal (see more information in the forwarded email below). This message may be from an external email source. Do not select links or open attachments unless verified. Report all suspicious emails to Minnesota IT Services Security Operations Center. Some people who received this message don't often get email from klindahl@landform.net. Learn why this isimportant Please note the comment period for this EAW closes on: April 17, 2025 Katherine Lind Environmental Review Specialist Minnesota Department of Transportation Central Office | Office of Environmental Stewardship (OES) 395 John Ireland Blvd, Mail Stop 620 St Paul, MN 55155 From: Kendra Lindahl, AICP <KLindahl@landform.net> Sent: Wednesday, March 12, 2025 12:52 PM To: Kendra Lindahl, AICP <KLindahl@landform.net> Subject: RE: Zachman Meadows EAW All, I send the EAW as an attachment and am now sending a second version with a link as the file was too large for some agencies: https://we.tl/t-VIz5VXzYv3 Kendra Lindahl, AICP​​​​ LANDFORM, Principal Planner Direct: 612-638-0225 From: Kendra Lindahl, AICP Sent: Wednesday, March 12, 2025 12:38 PM To: Kendra Lindahl, AICP <klindahl@landform.net> Subject: Zachman Meadows EAW All, The City of Otsego prepared the EAW for Zachman Meadow EAW. Boyd Dollansky, LLC (Proposer) proposes to expand an existing mixed-use development in Otsego (RGU). The project will include 159 single family homes and 222,000 sq. ft. of commercial space for car condos on 67.46 acres. The first portion of the project was approved in 2024 and is actively under construction. Phase two of the project is the addition of 12.12 acres north to the approved development and will add 44 new single family villa homes. Construction of the project is ongoing with completion anticipated in the Fall of 2026. The public comment period ends on April 17, 2025. Please direct any comments to me at klindahl@landform.net. Kendra Lindahl, AICP​​​​ LANDFORM, Principal Planner Direct: 612-638-0225 Aerial Operations / Civil Engineering ​Land Surveying / Landscape Architecture / Urban Planning 105 5th Ave. S, Ste. 513, Minneapolis, MN 55401 ​Phone: 612‑252‑9070 Fax: 612‑252‑9077 NOTICE: All drawings, specifications, instruments of service, and other documents, data, or information of any kind, including all electronic files and data ("Documents") attached to or "linked" from this E-mail are protected by copyright pursuant to U.S. and international copyright laws. Your use of the Documents is controlled and restricted by the terms of use. By downloading the attached files or by accessing the links contained in this E-mail message, you are agreeing to the terms of use. COPYRIGHT © 1994-2025 LANDFORM. ALL RIGHTS RESERVED. NOTICE: indicated professional registrations are for the state in which the office is located; to obtain information about other state licenses, please contact Human Resources at 612-252-9070. Landform®, SensiblyGreen® and Site to Finish® are registered service marks of Landform Professional Services, LLC. April 9, 2025 VIA EMAIL Daniel Licht, City Planner City of Otsego 13400 90th Street Northeast Otsego, Minnesota 55330 ddl@planningco.com RE: Zachman Meadows – Environmental Assessment Worksheet Dear: Daniel Licht Thank you for the opportunity to review and comment on the Environmental Assessment Worksheet (EAW) for the Zachman Meadows project (Project) located in Wright County, Minnesota. The Project consists of Boyd Dollansky, LLC (Proposer) proposing to expand an existing mixed-use development in Otsego (RGU). The Project will include 159 single-family homes, and 222,000 sq. ft. of commercial space for car condos on 67.46 acres. The first portion of the Project was approved in 2024 and is actively under construction. Phase two of the Project is the addition of 12.12 acres north to the approved development and will add 44 new single-family villa homes. Construction of the Project is ongoing with completion anticipated in the Fall of 2026. Regarding matters for which the Minnesota Pollution Control Agency (MPCA) has regulatory responsibility and other interests, the MPCA staff has the following comments for your consideration. Wastewater • A wastewater design flow estimate is provided for the 159 residential units identified for the Project. A wastewater design flow estimate should also be provided for the proposed commercial development type which is identified as a 222,000 sq. ft. building area. Watershed • With the impacts to wetlands, the Section 404 with the Army Corps is mentioned. If a Section 404 review is needed, the MPCA 401 Certification will also be required. • With the proximity to the wetlands, additional mitigation of stormwater will help ensure that landowners do not have flooding issues. We appreciate the opportunity to review this Project. Please be aware that this letter does not constitute approval by the MPCA of any or all elements of the Project for the purpose of pending or future permit actions by the MPCA. Ultimately, it is the responsibility of the Project Proposer to secure any required permits and to comply with any requisite permit conditions. If you have any questions concerning our review of this EAW, please contact ,e by email at chris.green@state.mn.us or by telephone at 507-476-4258. Daniel Licht Page 2 April 7, 2025 Sincerely, Chris Green This document has been electronically signed. Chris Green, Project Manager Environmental Review Unit Resource Management and Assistance Division CG:rs Attachment cc: Amy Timm, MPCA Miranda Nichols, MPCA Nicole Peterson, MPCA Lauren Dickerson, MPCA Innocent Eyoh, MPCA Deepa deAlwis, MPCA Julie Henderson, MPCA David Sahli, MPCA Dan Card, MPCA Zachman Meadows EAW D Findings of Fact and Conclusions, Response to Comments, and Record of Decision Appendix B: City of Otsego Negative EIS Need Declaration Resolution Zachman Meadows EAW E Findings of Fact and Conclusions, Response to Comments, and Record of Decision Appendix C: Zachman Meadows Environmental Assessment Worksheet