11-19-07 PCITEM 3-1
NORTHWEST ASSOCIATED CONSULTANTS, INC.
4800 Olson Memorial Highway, Suite 202, Golden Valley, MN 55422
Telephone: 763.231.2555 Facsimile: 763.231.2561 planners@nacplanning.com
PLANNING REPORT
TO: Otsego Planning Commission
FROM: Daniel Licht, AICP
RE: Otsego — Minnesota Native Landscapes (MNL)
REPORT DATE: 15 November 2007
NAC FILE: 176.02
BACKGROUND
The City of Otsego has annexed 52.6 acres of land from Monticello Township at the end
of 77th Street, west of Jalger Avenue. The annexation area consists of two parcels; a
22.4 acre parcel abutting the 77th Street right of way owned by Michael and Alice
Helfert, which is developed with one single family dwelling (see Exhibit A) and a second
30.2 acre parcel abutting the west side of the Helfert property and is being purchased
by Minnesota Native Landscapes (MNL). The 30.2 acre parcel is a landlocked parcel
currently owned b� Mrs. Elieen Shierts who also owns 126.8 acres north of the MNL
parcel fronting 85t Street.
The annexation was initiated by the property owners in response to the City's concerns
about MNL developing a landscape seed and restoration business on their parcel that
would utilize 77th Street in Otsego for access. The City's issue with the use of 77th
Street by the business was that the street is already in poor condition and truck traffic
generated by MNL would accelerate the need for major road repairs. The property
owners were in favor of the annexation as Otsego's development controls are more
flexible at addressing the unique issues related to the proposed development than those
of Wright County. The applications being considered in relation to the annexation are:
Comprehensive Plan amendment to include the annexation area within the West
Sewer District and guide the parcels for future industrial use.
Zoning Map amendment rezoning the annexation area from A-1 District to A-2
District
PUD -CUP to allow for indirect access to a public street, administrative
subdivision of a parcel not fronting a public right-of-way and lot areas less than
20 acres within the A-2 District.
ANALYSIS
Comprehensive Plan. The Comprehensive Plan does not address extra territorial
land use due to the area of the City and available undeveloped land supply. The
annexation of land from Monticello Township was unexpected and a result of the unique
issues impacting 77th Street. As such, it is necessary to establish a future land use and
sewer staging plan for the annexation area.
The area of Otsego west of CSAH 19, south of 80th Street and north of 1-94 is guided for
commercial and industrial uses (except for Kittredge Crossings). The future land uses
guided in this area is intended to be an opportunity to expand local employment,
increase the City's tax base and take advantage of visibility from 1-94 via existing
accesses at CSAH 37 and CSAH 19 or the planned Kadler Avenue/Future CSAH 37
interchange. The annexation area abuts the north side of 1-94 and both parcels have
good visibility. MNL's proposed use is considered to be an agricultural business, but
one that would compatibly exist within an industrial area. It is recommended that the
annexation area be designated for industrial use on the Future Land Use Plan.
Development of the MNL site is expected to utilize an on-site septic and well. However,
the City Engineer has made a preliminary analysis for extension of sewer to the
annexation area. The annexation area can be served in the future off of the trunk sewer
lines that will be extended northwest of Kittredge Crossings and then south to the area
south of 1-94. As such, City staff recommends that the annexation area be included in
the West Sanitary Sewer Service District.
Zoning. In accordance with Section 20-50-4 of the Zoning Ordinance, parcels annexed
to the City are zoned A-1 District. The City treated development of a use similar to that
of MNL off of Oakwood Avenue as an agricultural use with respect to site development
standards and requiring only administrative approvals for site and building plans. We
recommend the same approach apply to the proposed MNL site. As such, both MNL's
proposed business and existing residence on the Helfert property would both be
allowed as permitted uses within the A-1 District. A rezoning to A-2 District and a PUD -
CUP is proposed to address the following issues:
Access. 77th Street currently dead ends at the Helfert property. Wright County
was going to require MNL to create a 66 foot wide parcel connecting their 30.2
acre site to the end of 77th Street. Otsego's approach is to require dedication of
an 80 foot wide right-of-way easement from the end of 77th Street across the
Helfert property and to the north line of the MNL parcel. This right-of-way will
allow for construction of a future industrial street that could eventually be
connected to 85th Street through the remainder of the 126.4 acre Shierts
property. Construction of a public street within the right-of-way will be deferred
until either the MNL parcel or Helfert parcel are rezoned to an industrial district
for sewer and water or the City otherwise determines a need for the street. In the
interim, MNL will construct and maintain a 20 foot wide gravel driveway to use for
access to their property and the Helfert property.
2
Lot Requirements. Access to the MNL parcel from 77th Street is to be provided
for by establishment of a permanent right-of-way easement across the Helfert
property. Although the right-of-way will be established as an easement and not a
platted parcel, the Helfert property is effectively divided. The City has
recognized that parcels divided by public streets as two separate parcels. The A-
1 District requires a minimum lot area of 20 acres of which the divided Helfert
parcels would not comply with. Rezoning the annexation area to A-2 District
allows for a minimum lot area of 1 acre and recognizes that the Helfert property
be allowed one development right on each parcel divided by the roadway
easement.
MNL Administrative Subdivision. MNL's acquistion of the Shierts property
within the annexation is outright purchase of the east 10.0 acres and a contract
for deed for the west 20.2 acres. For mortgage purposes, it is necessary for
MNL to divide the property into two parcels. The rezoning to A-2 District with a
PUD -CUP allows for the lot area less than 20 acres. Because the west parcel
acres will not abut the 77th Street right-of-way easement, subdivision of the
property requires approval of the PUD -CUP to allow a lot without frontage to a
public street. City staff believes that the lot split is appropriate given that the land
would revert to Ms. Shierts if the contract for deed is not satisfied. As the MNL
parcel is land locked and accessed through Mrs. Shierts other property, the
original condition would essentially restored. We recommend that a condition of
the PUD -CUP be a prohibition on issuance of a building permit upon the
proposed west parcel unless access to a public street is provided for to ensure
than any development of the site by other than MNL would have access as
intended by the Zoning Ordinance. MNL will need to submit a certificate of
survey and legal description of the proposed administrative subdivision, which is
subject to approval by the Zoning Administrator.
Development Contract. MNL and Helferts must enter into a development contract with
the City regarding dedication of the right-of-way easement, improvements to existing
77th Street and other conditions related to the annexation. The development contract
will be drafted by the City Attorney and is subject to approval by the City Council.
Criteria. The applications for a Zoning Map amendment and PUD -CUP are to be
considered based upon, but not limited to, the criteria outlined in Sections 20-3-2.F and
20-4-2.F of the Zoning Ordinance:
The proposed action's consistency with the specific policies and provisions of the
Otsego Comprehensive Plan.
2. The proposed use's compatibility with present and future land uses of the area.
3. The proposed use's conformity with all performance standards contained within
the Zoning Ordinance and other provisions of the City Code.
4. Traffic generation of the proposed use in relation to capabilities of streets serving
the property.
5. The proposed use can be accommodated by existing public services and
facilities and will not overburden the City's service capacity.
RECOMMENDATION
Our office recommends approval of the Comprehensive Plan amendment, Zoning Map
amendment and PUD -CUP for the MNL and Helfert properties as outlined below.
POSSIBLE ACTIONS
Decision 1 - Comprehensive Plan amendment
A. Motion to approve an amendment of the Comprehensive Plan including the
subject sites within the west sewer district and guiding the area for future
industrial use consistent with the policies of the Comprehensive Plan.
B. Motion to deny the application based on a finding that the request is inconsistent
with the policies of the Comprehensive Plan.
C. Motion to table.
Decision 2 - Zoning Map amendment
A. Motion to approve a Zoning Map amendment rezoning the subject sites from A-1
District to A-2 District consistent with the policies of the Comprehensive Plan.
B. Motion to deny the application based on a finding that the request is inconsistent
with the policies of the Comprehensive Plan.
Decision 3 — PUD -CUP
A. Motion to approve a PUD -CUP to allow indirect access to a public street and
subdivision, of a lot not fronting a public right of way and allowance of lot areas
less than 20 acres within the A-2 District, subject to the following conditions.-
Administrative
onditions:
Administrative subdivision of the MNL parcel shall require a deed
restriction on the westerly parcel prohibiting issuance of a building permit
unless direct access to a public right-of-way is provided. The
administrative subdivision shall be processed in accordance with Section
2 of the Subdivision Ordinance and approval of the Zoning Administrator.
2. A an 80 foot wide permanent public right-of-way easement shall be
dedicated centered 7 feet north of the existing centerline of 77th Street and
extending through the Helfert property to the north line of the MNL
property. Construction of an improved public street consistent with the
Ell
local industrial street standards of the Engineering Manual shall be
deferred until such time as the MNL or Helfert properties are rezoned to
allow a use guided by the Comprehensive Plan or the City Council
determines that a public need exists.
4. MNL shall construct and maintain a minimum 20 foot wide gravel or
asphalt driveway from the end of 77th Street to their site access until such
time as a public street is constructed within the public right-of-way.
5. MNL shall enter into a development contract with the City to provide for an
overlay of existing 77th Street to a standard as approved by the City
Engineer within three (3) years from the date of a certificate of occupancy
being issued for a building upon the MNL parcel. Funds for completion of
the overlay based on a cost estimate plus inflation as determined by the
City Engineer shall be escrowed with the City by a Letter of Credit. The
project may be undertaken as a City project with costs plus interest
assessed to MNL as agreed upon within the development contract.
6. The Helfert property is limited to two (2) development rights, one north of
the 77th Street right-of-way and one south of the 77th Street right-of-way
unless a Zoning Map amendment consistent with the Comprehensive Plan
is approved.
7. MNL and the Helferts shall enter into a development contract with the City
regarding the conditions of annexation and the PUD -CUP subject to
approval by the City Council.
C. Mike Robertson, City Administrator
Judy Hudson, City Clerk/Zoning Administrator
Andy MacArthur, City Attorney
Ron Wagner, City Engineer
Joe Schaffer, MNL
Michael and Alice Helfert
Elieen Shierts
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ITEM 3_2
NORTHWEST ASSOCIATED CONSULTANTS, INC.
5775 Wayzata Boulevard, Suite 555, St. Louis Park, MN 55416
Telephone: 952.595.9636 Facsimile: 952.595.9837 planners@nacpianning.com
MEMORANDUM
TO: Otsego Planning Commission
FROM: Daniel Licht, AICP
DATE: 13 November 2007
RE: Otsego — Subdivision Ordinance; Park and Trail Dedication
NAC FILE: 176.08 — 07.04
BACKGROUND
The City Council has directed City staff to annually review the park and trail dedication
requirements in Section 21-7-18 of the Subdivision Ordinance. The purpose of this
review is to ensure and demonstrate that there is a nexus between the cash fee in lieu
of land accepted by the City for park and trail acquisition and development purposes is
representative of the costs incurred by the City in relation to new development as
required by Minnesota Statutes 462.358, Subd. 2c.
ANALYSIS
Current Fee. The City's current residential park and trail fee in lieu of land for
residential development was adopted to be effective 1 January 2007 and is $3,230 per
dwelling unit. The fee is based on the following cumulative factors stated on a per
residential unit basis:
Land acquisition: $1,600.00
Neighborhood park development: $ 770.00
Community center development: $ 800.00
Trails $ 60.00
TOTAL $3,230.00
For 2007, park and trail dedication fees in lieu of land for commercial and industrial
subdivisions were established at $7,000.00 and $3,500.00 per gross acre, respectively,
based on 2003 land values.
Land Cost. No change in residential land values of approximately $60,000 per gross
acre (cited originally in our office's 29 January 2004 memorandum) has been observed
by City Staff during 2004. Lennar Corporation offered to sell the City a parcel of land ofr
a potential park near the Riverpointe and River Place neighborhood at $90,000 per acre
but no action has been taken on the proposal. We do not recommend a change in the
land value component of the residential cash fee in lieu of land on this basis.
Commercial and industrial land values along the TH 101 corridor have increased greatly
over the last few years. These increases are reflective of continued residential growth
within the City, increases in commuter traffic through the City and MNDoT's plans to
upgrade TH 101 to a four lane freeway in 2006 to 2007. The current cash fee in lieu of
land for commercial and industrial is reflective of land values equal to $70,000 an acre
for commercial property and $35,000 an acre for industrial property. Recent
commercial land sales and appraisals being done as part of the TH 101 and CSAH 42
improvement projects suggests minimum commercial property values of approximately
$350,000 per acre for commercial land and approximately $100,000 per acre for
industrial land. Based on this information, the City could justify an increase in the
commercial and industrial cash fee in lieu of land for park and trail dedication as the
current fees are approximately two percent of the land value of commercial property and
four percent of industrial land values. However, from an economic development
standpoint, City staff would recommend that the commercial and industrial cash fees in
lieu of land for park and trail dedication not be changed.
Construction Cost. The City undertook construction of three new neighborhood parks
in 2006 based on facilities and site designs intended to define a typical neighborhood
park. The City also received a preliminary cost estimate for Roskaft Park to be
constructed in the Wildflower Meadows subdivision. The individual construction cost
estimates for these facilities and an adjusted average for the end of the third quarter of
2007 are shown below. The adjusted construction costs are based on information
published by the Engineering News -Record Construction Cost Index and indicate an
approximate 2.7 percent increase in construction costs between the third quarters of
2006 and 2007.
Beaudry Meadows:
$701,615.00
Zimmer Farm:
$601,964.00
Kittredge Crossing:
$634,128.00
Roskaft Park:
$638,103.00
Mean Cost:
$643,953.00
Each neighborhood park guided by the Comprehensive Plan is anticipated to serve an
approximate one square mile area. Assuming an average density of 2.5 dwelling units
per acre within residential areas of the City based on existing development and
established development regulations, there are approximately 804 households per
square mile. As such, the cost per dwelling unit for neighborhood park construction
based on the current typical park facility design and construction costs is $801.00.
2
Community Center. Research was also done in the 2003 analysis regarding the cost
for construction of a community center similar to that built by Monticello, Maple Grove,
Becker and Elk River. The assumed cost of a similar facility for Otsego was
$14,800,000 based on that data. Under park and trail dedication requirements, the City
has included that portion of the cost for a community center to be borne by new
residents moving into the community. The 2000 Census identifies Otsego as having
2,062 households. The 2004 Comprehensive Plan projects the City to have a
household count of 21,471 by 2040 based on a growth rate of 400 to 600 new
households per year.
The initial community center portion of the park dedication cash fee in lieu of land was
therefore set in 2003 at $690.00 reflecting the anticipated cost of a community center
and 2040 household estimate. The adjusted 2007 fee was set at $801.00. Using ENR
CCI for the period between the third quarter of 2006 when the 2007 fee was calculated
and the third quarter of 2007 reflecting current prices, a 2.7 percent adjustment is
required. The cost per household for construction of a future community center should
be set at $822.00 for 2008.
Trails. The 2007 cash fee in lieu of land included a trail construction element to
account for full buildout of the remaining trail system. Approximately 1.79 miles or
9,450 linear feet of trail were constructed in 2007 along CSAH 42 and within the Great
River Center. The Future Parks and Trails Plan map included in the 2004
Comprehensive Plan identifies15.8 miles or 83,440 linear feet of future trails yet to be
constructed. The 2007 cost estimate for the construction of trails as part of street
projects or stand-alone construction is $16.24 a linear foot. To determine a cost factor
for future trail construction the following equation is used:
73,990ft. x $16.24/ft. / 21,079 households = $57.00 / dwelling unit
CONCLUSION
Our office recommends that the park and trail cash fee in lieu of land for residential
subdivisions paid on a per dwelling unit basis as set forth by Section 21-7-18.1 of the
Subdivision Ordinance be established at $3,280.00 (rounded to the nearest $10.00) for
2008 as shown below. The proposed 2008 park and trail dedication fee is $50.00 or 1.5
percent higher than the 2007 fee. This increase reflects adjustments in the mean park
development costs, 2007 trail construction and inflationary construction costs.
Land acquisition: $1,600.00
Neighborhood park development: $ 801.00
Community center development: $ 822.00
Future trails construction: $----57.00
TOTAL $3,280.00
3
The Planning Commission and City Council may also consider increases to the
commercial and industrial cash fees in lieu of land based on rising land values. An
increase to these fees must also be balanced against the effect to the City's economic
development goals.
C. Mike Robertson
Judy Hudson
Andy MacArthur
Ron Wagner
4
ORDINANCE NO.: 2007 -
CITY OF OTSEGO
COUNTY OF WRIGHT, MINNESOTA
AN ORDINANCE AMENDING THE SUBDIVISION ORDINANCE OF THE CITY OF
OTSEGO PERTAINING TO PARK AND TRAIL DEDICATION.
THE CITY COUNCIL OF THE CITY OF OTSEGO DOES HEREBY ORDAIN:
Section 1. Section 21-7-18.1.1 of the Otsego Subdivision Ordinance is hereby
amended to read as follows:
1. Residential Development: $3,280.00 per dwelling unit.
Section 2. This Ordinance shall become effective 1 January 2008 upon its
passage and publication according to law.
MOTION BY:
SECOND BY:
ALL IN FAVOR:
THOSE OPPOSED:
ADOPTED by the Otsego City Council this 26th day of November, 2007.
CITY OF OTSEGO
L:0
Larry Fournier, Mayor
ATTEST:
Judy Hudson, Zoning Administrator/City Clerk
Future Community Park Needs:
5 to 8 acres per 1000 population
2040 Population = 59,045
295 to 472 acres
Existing Prairie Park = 52 acres
Additional Land Required = 243 to 420 acres
Recommended Community Park area = 50 to 100 acres
Two community parks are guided on the Future Parks and Trails Plan.
Assume two 100 acre parcels or 200 acres to be acquired.
Current residential land value of $60,000/acre
Total acquisition costs of $12,000,000.
Options for calculating a community park impact fee
Community park land acquisition cost spread across all year 2040 households =
12,000,000 / 21471 households = $559/household
Community park land acquisition cost spread across new households 2006 to 2040:
12,000,000 / 16997 households = $706/household
Neighborhood park land acquisition: $1,600.00
Neighborhood park development: $ 801.00
Community center development: $ 822.00
Community park land acquisition: $ 706.00
Future trails construction: $--a7.00
TOTAL $3,986.00