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07-22-98 PCJUL-20-1998 07:43 NAC 2 595 9837 P.02i10 NORTHWEST ASSOCIATED CONSULTANTS INC COMMUNITY PLANNING - DESIGN - MARKET RESEARCH MEMORANDUM TO: Otsego Mayor and City Council Otsego Planning Commission FROM: Daniel Licht / David Licht DATE: 17 July 1998 RE: Otsego - Comprehensive Plan: Agricultural area growth options FILE NO.: 176.14 At the last Comprehensive Plan workshop on 8 July 1998, staff was directed to contact surrounding communities regarding their policies for development in unsewered agricultural areas_ Staff was also directed to prepare a range of growth options to be considered for the agricultural area in Otsego. This memorandum outlines the results of the community survey and presents six growth options for discussion at the Comprehensive Plan workshop meeting scheduled for 22 July 1998. Vacant Land Demand In considering a development strategy for the agricultural area, the first question that needs to be discussed is the likelihood and timing of sewer extension to the area over the life of this Comprehensive Plan. The answer to this question will address if agriculture is a permanent use of the area or it is an interim use, until sewer is ultimately available. The rate of development in City of Ostego and surrounding region is a critical factor that must be considered. To date, the Comprehensive Plan has been drafted assuming that the majority of new development in Otsego would occur within the sanitary sewer service district. The growth projections utilized for the design of this first phase of sewer service extension in the community anticipated that approximately 875 new households would be added to the community over the next 20 years. Eighty percent of those new households were projected to develop within the sanitary sewer service district. Based upon a residential density of 2.5 units an acre, approximately 423 acres of land will conservatively be 5775 WAYZATA BOULEVARD. SUITE 555 ST. LOUIS PARK, MINNESOTA 5541 6 PHONE 612-595-9636 FAX 612-595-9837 E-MAIL. NACO WINTERNET.COM JUL-20-1998 07:44 NAC 612 595 9837 P.03i10 absorbed by new residential, commercial and industrial development over the next 20 years within the sanitary sewer service district. The projected absorption rate within the sanitary sewer service district is equal to approximately 21 acres per year. The projected development over the next 20 years is equal to approximately one third of the potential total development within the sanitary sewer service district. The Urban Service Area Reserve, where development is to expand into when the Sanitary Sewer Service District becomes saturated, has an area of approximately 4,000 acres. Likewise, the City of Albertville Comprehensive Plan includes projections for the absorption of vacant land within that community. Prepared in 1995, the projections anticipate that Albertville has enough vacant or agricultural land that would be converted to urban uses to support development through the year 2020. These projections were prepared prior to the detachment/annexation of land from Otsego and former Frankfort Township to Albertville, which added developable land to Albertville's vacant land supply. The projected development in Albertville will likely require expansion of their existing treatment plant. The St. Michael Comprehensive Plan indicates that the majority of new growth in the City will occur to the east of Albertville and to the south of the existing developed area. The St. Michael Comprehensive Plan anticipates that approximately 3,000 acres of agriculture or undeveloped land will be absorbed over the next +/- 25 years_ In response, St. Michael is also planning for expansion to their existing sewer treatment facilities. Development in Ostego, Albertville and St. Michael could occur at a faster rate than anticipated over the next 20 years. However, the projections outlined above indicate that there is no demand, in terms of vacant land supply, for development of the agricultural area of Otsego. The size of the agricultural area, as currently defined, is approximately 7,340 acres. The anticipated development in both Otsego and Albertville does not approach absorbing this much land, not even considering areas already planned for urban development. Community Survey Staff contacted the communities of Corcoran, Elk River, Greenfield Hassen Township, Monticello Township, St. Michael and Sherburne County regarding the density allowed in unsewered agricultural areas, minimum lot size standards in these areas and feedlot regulations. The results of this survey are presented below. 2 JUL-20-1998 07 45 NAC 612 595 9837 P.04/10 The results of the survey indicate that, for the most part, surrounding communities limit the density of development outside of areas planned for immediate residential development to at least 4 units per 40 acres. Greenfield and Sherburne County allow for higher residential densities in area planned for unsewered residential development. The City of Elk River allows the highest density of the communities surveyed both outside and within their urban service area. It should be noted that Corcoran, Greenfield and Hassen Township are all within the Twin Cities Metropolitan area and are therefore subject to Regional Blueprint Development Guide, prepared by the Metropolitan Council, as required by State Statutes. The Regional Blueprint outlines that Greenfield is to remain in Permanent Agriculture, Corcoran is to remain almost all Permanent Rural and Hassen Township is half within the Permanent Agriculture Area and Permanent Rural Area. The Regional Blueprint states that density in the Permanent Agriculture Area is to be 1 unit per 40 acres, while the Permanent Rural Area is to have a gross density of 1 unit per 10 acres. Special attention should also be given to the plans prepared for St. Michael and Monticello Township as these areas are directly adjacent to Otsego's Agricultural area. The western half of St. Michael is planned for continued agricultural use for at least the next 25 years. Residential density of 1 per 40 is allowed in the agriculture area to ensure that development does not occur in an inefficient and unplanned manner or interfere with Density in unsevered Areas Minimum Residential Feedlot Regulation Lot Size 1:10 w/ access from paved 2 acres (both) CUP required Corcoran road 1:30 w/ access from unpaved road Elk River Equal to minimum lot size outside Urban Service No specific regulation Area: 2.5/10 acres. Inside Urban Service Area: i /10 acres. Greenfield 1:11 Agriculture 2.5 acres Under consideration 1:6 Residential Hasson Twp. 1:20, Rural Agriculture - 4 acres No regulations planned for residential Monticello Twp. 1:40 (4:40 in OAA) 1 acre in 1:40 Wright Co. Ordinance 10 acres in 4:40 St. Michael 1:40 2 to 5 acres CUP Sherburne Co. 1:40 in agriculture area 1:5 in wooded areas 5 acres (west'A) 2.5 acres (east 'rs) CUP - studying additional regulation The results of the survey indicate that, for the most part, surrounding communities limit the density of development outside of areas planned for immediate residential development to at least 4 units per 40 acres. Greenfield and Sherburne County allow for higher residential densities in area planned for unsewered residential development. The City of Elk River allows the highest density of the communities surveyed both outside and within their urban service area. It should be noted that Corcoran, Greenfield and Hassen Township are all within the Twin Cities Metropolitan area and are therefore subject to Regional Blueprint Development Guide, prepared by the Metropolitan Council, as required by State Statutes. The Regional Blueprint outlines that Greenfield is to remain in Permanent Agriculture, Corcoran is to remain almost all Permanent Rural and Hassen Township is half within the Permanent Agriculture Area and Permanent Rural Area. The Regional Blueprint states that density in the Permanent Agriculture Area is to be 1 unit per 40 acres, while the Permanent Rural Area is to have a gross density of 1 unit per 10 acres. Special attention should also be given to the plans prepared for St. Michael and Monticello Township as these areas are directly adjacent to Otsego's Agricultural area. The western half of St. Michael is planned for continued agricultural use for at least the next 25 years. Residential density of 1 per 40 is allowed in the agriculture area to ensure that development does not occur in an inefficient and unplanned manner or interfere with JUL-20-199e 07 45 NAC 612 595 9e37 P.05i10 continued agriculture_ According to Wright County Planning, the area of Monticello Township abutting Otsego is planned for long term continued agriculture. As such, density in the Township outside of the Orderly Annexation Area with the City of Monticello and a few unique areas, is limited to 1 unit per 40 acres. The minimum lot sizes required by the various communities were almost all within the 1 to 5 acre range for residential uses. The exception is Monticello Township, which requires a 10 acre residential minimum lot size within the 4 per 40 area. Again, this district is primarily within the DAA with the City of Monticello. Finally, regulations on feedlot operations varied from no regulation to requiring approval of a conditional use permit for new or expanded feedlots. In this regard, Otsego's existing feedlot regulations may be considered more restrictive. A number of communities were in the process of possibly developing new feedlot regulations. Also, a number of communites that were contacted indicated that they had not had much issue with feedlots to date. Growth Options Staff has prepared a number of growth options for the agricultural area. The growth options outlined below were developed based on a number of factors including potential availability of sewer service to the area from the City of Albertvile and the need to plan for efficent extension of sanitary sewer lines, need to minimize agriculture and residential use confilict, and the needs of sustainable agricultural uses. The growth options that have been prepared represent a continum between likely sewered development of the area and maintaining permanent agriculture. It must be noted that the growth options provide only for possible future sewered development of the area. This is because the specifics of actually providing sewer service to the area have not been determined. Factors such as the ability to expand Albertville's existing treatment facility, the costs associated with such an improvement, and the need or ability to provide water service to the area are all unknown. The discussion at this stage, therefore, is more similar to planning for the Urban Service Area Reserve than planning the Sanitary Sewer Service District_ The following outlines briefly the factors considered in developing the growth options: Density. The density of development allowed in the agricultural area will have the greatest impact to achieving the desired goal for this area. If agricutulture is to be preserved, then the lowest possible density should be maintained so as to limit encroachment of residential uses that confilict with modern agricultural practice. However, even if agriculture is viewed as an interim use until sewer service can be extended, the density allowed in the area must be somewhat limited so as to allow rd JUL-20-1998 07:46 NAC 612 595 9837 P.06i10 for easy and efficent extension of service lines. A rural growth option provides an opportunity for an immediate increase in density for it anticipates the long term phase out of agriculture, but recognizes that sanitary sewer service is likely not immediately available. Rural growth options with large lot suburban developments do result in a less dense development pattern, which can increase service delivery costs. Minimum Lot Size. Minimum lot size requirements are provided for through the Zoning Ordinance. The Comprehensive Plan should outline if the minimum lot size standard in the agricultural area that should be established so as to maintain as much contiguous open land as possible for continued agriculture or if it should be established to allow for the greatest redevelopment opportunity. Again, this standard is dependent upon the view of agriculture as a permanent or interim use and the anticipated rate of development. Density Transfer. Transfer of development rights has the effect of allowing more residences to be developed in a given area. If the City's goal is long term agriculture preservation, then the Comprehensive Plan should be drafted to discourage density transfers and the Zoning Ordinance subsequently ammended. However, density transfers may be appropriate for rural character areas and could be maintained if that is direction of the community. Feedlot Regulations. The regulation of feedlot operations has an impact on the ability to sustain agriculture as a viable land use, according to farmers that spoke at the public meetings. Too stringent regulations makes it difficult for individual or smaller family farms to be competitive as an agriculture business. However, residential uses in rural areas often precieve the realistic characteristics of feedlot agricultural uses as a nusance or even a potential health safety issue. An agricultural preservation growth option would allow for the establishment of new feedlots and expansion of existing opertations, whereas a urban service growth option would not allow any new feedlots and prohibit expansion of existing ones. Growth options in the center of the spectrum of development may allow for expansions of existing opertations, but no new feedlots, etc. One important factor that should be considered growth scenario that anticipates continued agriculture would be reciprocal setbacks: That is new residences must be setback from exsiting feedlots as new feedlots would have to be setback from existing residences. 5 JUL-20-1998 07:47 NAC 612 595 9837 P.07i10 The growth options prepared for consideration are outlined in the table below. The growth options become slightly more restrictive in terms of protecting agricultural uses and limiting development moving left to right accross the columns. There is flexibility to alter the options to accomodate the community's goal for this area. However, caution must be excersied so as not to utilize a mix of concepts from opposite ends of the continum. The existing situation in the agricultural area is an example of plans and policies that support both continued agriculture (density, lot size standards) and development of residential uses in the area (feedlot ordinance, density transfer). AGRICULTURAL ARF.r4 GROWTH OPTIONS I - All of the presented options require implem Cation by Zoning Ordinance amendments. Any necessary amendments would be undertaken following completion of the Comprehensive Plan update. Each of the growth options is described below. Urban Service Area Reserve. This option represents the most rapid phase out of agricultural use in anticipation of sanitary sewer service. A residential density of 4 units per 40 acres would be established so as to maintain the area as relatively undeveloped until sanitary sewer service would be available. A 10 acre minimum lot size for residential uses would be established so as to absorb as much of the existing agricultural land as possible. In conjunction with the development of residential uses, the development of new feedlots or expansion of existing feedlots would be prohibited. Urban ng Rang Rural Rural ,agriculture Agriculture Service Reserve Agriculture Reserve Preserve Area Service Reserve eserve Area esery Density :40 40 4:40 1:40 / 1:40 1:4 gh r 4:40 (Co.Rd_) Mn. Lot 10 cre/ abs 'on 2.5 acre 2.5 acre 2.5 0 cre 2.5 acre Size b on (mi ax) (m{ max) d Density n!a n/a 4:40 1:40 14 0 Transfer Feedlot No ei o ne No new New feedlots N feedl is w f ots Ord. fee ots ar fe dots b t feedlots but or or and ex nsi n imited limited expansions ansion expansio s of Asti a ansion expansion I allowed I allowed ! allowed f edl r gistration reciprocal reciprocal reciprocal n ciproca setbacks! setbacks/ setbacks I setbacks regi alio registration registration registration - All of the presented options require implem Cation by Zoning Ordinance amendments. Any necessary amendments would be undertaken following completion of the Comprehensive Plan update. Each of the growth options is described below. Urban Service Area Reserve. This option represents the most rapid phase out of agricultural use in anticipation of sanitary sewer service. A residential density of 4 units per 40 acres would be established so as to maintain the area as relatively undeveloped until sanitary sewer service would be available. A 10 acre minimum lot size for residential uses would be established so as to absorb as much of the existing agricultural land as possible. In conjunction with the development of residential uses, the development of new feedlots or expansion of existing feedlots would be prohibited. JUL-20-1998 07:47 NAC 612 595 9837 P.08i10 Long Range Urban Service Area Reserve. This option anticipates that the extension of sanitary sewer service to the area is not going to occur in the near future, but does provide for a transition away from existing agricultural uses. In that sanitary sewer service would likely not be readily available, the City could consider a possible higher density in the area. However, a higher density may ultimately make sewer extension to the area in the long term difficult by not allowing for easy redevelopment. This option would also likely increase the City's service delivery costs in the short term because of the less efficient pattern of development. Again, so as to phase out existing agricultural uses, the minimum lot size should be set so as to absorb an entire 40 acre parcel at maximum density. Consideration could be given towards allowing limited expansion of existing feedlots to allow continued use until such time as the property developed. Rural Reserve. Sustained agricultural uses would be considered a consistent use in a rural area and desired to continue under this growth option. So as to ensure that agriculture was a viable land use, a density of 4 units per 40 acres coupled with a minimum lot size standard intended to maintain large contiguous parcels would be suggested. The ability to transfer development rights at a density of 4 units per 40 acres would continue as exists today. With regard to feedlots, no new feedlots would be allowed, but provisions supporting limited expansions should be enacted. Additionally, the concept of reciprocal setbacks would be included as part of a revised feedlot ordinance. Rural Agricultural Reserve. The distinguishing element between this growth option and the Rural Reserve is that the Comprehensive Plan would be drafted to support the development of new feedlots in the area. As the allowance of new feedlots would suggest limiting the number of new residences in the area, a density of 1 unit per 40 acres is suggested along all local roads. Properties adjacent to paved County roads would be suggested to develop at 4 units per 40 acres. Density transfer would continue to be supported, however, only at a density of 1 unit per 40 acres. Reciprocal setbacks would also be encouraged as part of a revised feedlot ordinance. Agriculture Reserve. This growth option suggests that sanitary sewer service is unlikely to be provided to the area within the planning period and that agriculture should be the dominant land use. So as to encourage new residential development in the community to occur in the existing developed areas or sanitary sewer service district, a density of 1 unit per 40 acres would be proposed and density transfers at the same density would be provided for as it is currently. Minimum and maximum residential lot sizes would also be provided so as to maintain contiguous parcels for agriculture. Feedlots would be allowed to develop and expand with protective reciprocal setbacks established 7 JUL-20-1998 07:4e NAC 612 595 9837 P.09/10 Agriculture Preserve. This concept supports the idea that agricultural land uses are a permanent land use in the community for the foreseeable future and that every protection for them should be provided and all reasonable opportunity to expand allowed. As such, a density of 1 unit per 40 acres would be established with minimum and maximum residential lots sizes to preserve contiguous parcels. The ability to transfer development rights should be discouraged to further limit residential development. Feedlots would be allowed to develop and expand with protective reciprocal setbacks established. City officials have the option of utilizing one or more of the growth options as part of the Comprehensive Plan for the agricultural area. Areas that are likely to be sewered first, such as areas abutting Albertville, could be designated under one of the urban service area reserve concepts; areas that are less likely to receive sewer in the near future could be designated as one of the rural or concepts; finally areas likely not to receive sewer and water in the conceivable future could be designated as one of the agricultural concepts_ This growth strategy assumes that any sewer service to the area would be staged from Albertville. Alternatives, such as privately constructed package systems could be proposed within the agricultural area. In that the location of these proposals cannot be anticipated, it is difficult to plan for them. As such, it is best to prepare the plan anticipating eventual extension for Albertville. Any proposals for a package system could be considered on a case by case basis. A request for a Comprehensive Plan amendment would need to be made part of any development application that included a package treatment plan. Again, Comprehensive Plan amendments are processed in a manner similar to rezoning requests with the costs of considering the amendment borne by the applicant. The Planning Commission and City Council must consider the commitments that have been made for development of the City's own sanitary sewer system. The financing of the City system is dependent upon a minimum number of hook-ups in order to achieve cash flow. Even in this positive economic climate, there is a limit to the market for new homes in the area. Under the current plan, Otsego must compete primarily with the adjacent communities of Albertville, Elk River, St. Michael, Rogers and other west Hennepin County communities for new construction to fund the sanitary sewer system. Allowing development that is connected to Albertville's system takes some of the market that could be paying for Otsego's sanitary sewer system. Further, those connection fees help fund an expansion of Albertville's treatment facility, subsidizing competitive development in that community. 8 JUL-20-1998 07:49 NAC 612 595 9837 P.10i10 City officials must also consider that the anticipated commercial and industrial development suggested for the Highway 101 corridor is dependent on the market factors outlined in the Comprehensive Plan. One of the primary location factors for commercial uses is population density of an area. Development of housing adjacent to Albertville strengthens the attractiveness of their commercial locations, which compete with those in Ostego along the Highway 101 corridor. Based upon the considerations outlined in this memorandum, our office would recommend that the area that may be identified as being possibly serviced with sanitary sewer from Albertville be established as an Urban Service Area Reserve. This designation would plan for the efficient extension of service lines into the area by phasing out existing agriculture with very low density residential uses in the interim. Until that area is defined, the agriculture area in Otsego should be designated as Rural Agriculture Reserve. The Rural Agriculture Reserve designation would subsequently be maintained for that area that is beyond what is determined to be Alberville's urban service area. This Comprehensive Plan strategy of a mixed growth plan for the agricultural area in Otsego offers the best opportunity to plan for potential sanitary sewer service from Albertville. Until the service area is defined and sanitary sewer service is actually available, the Rural Agriculture Reserve option would support agriculture as a viable use in the community, protect the City's financial commitments for a sanitary sewer and water system, and protect the City's service delivery capabilities. pc. Mike Robertson Elaine Beatty Andy MacArthur John Harwood 0 TOTAL P.10