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City Council Minutes 05-20-1997 JointMINUTES SPECIAL JOINT MEETING MONTICELLO CITY COUNCIL/MONTICELLO TOWNSHIP BOARD Tuesday, May 20, 1997 - 7:30 p.m. Monticello Township Hall City Council Members Present: Bill Fair, Clint Herbst, Brian Stumpf, Roger Carlson, Bruce Thielen City Council Members Absent: None Township Board Members Present: Franklin Denn, Ted Holker, Ted Kopff, Ken Scadden, Charles Holthaus Township Board Members Absent: None Moderator: Pat Sawatzke A special joint meeting of the Monticello City Council and Monticello Township Board was held for the purpose of reviewing the urban service area boundaries within the orderly annexation area (OAA). Opening statements began with Mayor Bill Fair noting that the need for reviewing the urban service area arose from two township land owners who requested that their land be included in the urban service area on the southeast border of the city in order to proceed with annexation. The area defined as the urban service area was established in the OAA based on the 1989 city boundaries and where urban services were available at that time. A joint resolution between the City and the Township specified conditions that land must meet in order to be annexed. Mayor Fair stated that significant portions of the urban service area have developed since 1989 and that city services had been extended and oversized to accommodate further growth. It was the Mayor's view that because parcels adjacent to the city limits now meet the criteria for inclusion in the urban service area, the boundaries should be adjusted at this time. He stated that since the properties proposed to be developed by Orrin Thompson Homes and Bridgeland Development met the criteria of the urban service area, not adjusting the boundaries to include these properties would jeopardize the goals of the land use guide plan. Mayor Fair then reviewed the eight planning goals as noted in the OAA Land Use Guide Plan and emphasized that the plan and corresponding maps are guides to help define the urban service area and should be amended as influenced by growth. He presented 20 supporting reasons to amend the southeast urban service area, noting that if the urban service area boundaries were not adjusted to include the land which has been proposed for development, growth may occur in a different form which may not be compatible with the land use guide plan. The Mayor also reported that if modifications to the urban service area were to be considered, the Page 1 Special Joint Council Meeting - 5/20/97 City's ability to serve areas should be the starting point for those modifications. In conclusion, it was Mayor Fair's hope that an immediate agreement could be made on the two parcels currently proposed for development in addition to beginning the process of reviewing the entire urban service area. Franklin Denn, Monticello Township Board Chair, began his opening remarks by reviewing the history of the township, which originally encompassed 42 square miles. He also reviewed the history of annexations, noting that considerable area remains within the OAA that has not been developed. At the time the nuclear plant was annexed by the City, which gave the City a tremendous tax base and was contested by the Township Board, an agreement was reached that the City and Township should share the benefits from that tax base. Chairman Denn stated that the Township was concerned about the adverse effects annexation had on the township and that they would work with the City when it was necessary to annex areas to eliminate sprawling development. Township Board member Ted Holker added that considerable acreage has been annexed into the city, such as Hawk's Bar, Gould Brothers Chevrolet, D & D Bus Company, Halliger's Farm, 160 acres for the Klein Farms development, and the Krautbauer property. He stated that all of the properties annexed were within the urbanization area but has caused a steady erosion on the township. Discussions began with comments on the supporting reasons given by Mayor Fair for annexation of the two properties requesting development. Township Board member Ted Holker stated that he disagreed with reason #4 regarding the upscale housing proposed by Orrin Thompson Homes, as the houses being built in the city do not pay their fair share. It was his view that industrial and commercial development was needed rather than additional housing. Mayor Fair noted that the median valuation of homes was significantly higher in the township than in the city. Because the land proposed for development by Orrin Thompson Homes was wooded with rolling hills, upscale housing was being proposed, which would help to increase the city's tax base. Councilmember Herbst stated that the discussion should include the entire urban service area and not only the two parcels being proposed for development. Moderator Pat Sawatzke then requested that the group focus on the discussion items presented by the Township Board. 1. WHAT ARE THE NEEDS OF THE CITY Councilmember Herbst stated that his understanding of the purpose of the meeting was to discuss the entire urban service area and that annexation of specific parcels would not be discussed. Page 2 Special Joint Council Meeting - 5/20/97 Mayor Fair stated that the City must look at full use of its infrastructure due to the expense of installation and oversizing to allow for future growth, which was addressed in the City's comprehensive plan. In addition, very little commercial and industrial land is available for development, which would likely need to be discussed with the Township Board in the future. The Mayor also noted that the city needs population growth for its labor force and a housing mix to accommodate the growing population. 2. WHAT IS THE COUNCIL'S VISION FOR THE CITY Township Board member Ted Holker requested that each Council member state their idea of what the city should look like in the future so that the Township has a better idea of where they will be in the future. Mayor Fair noted that the City's vision is noted in the comprehensive plan, which is meant to help the City guide growth. How the city grows depends somewhat on decisions made by land owners; however, if proposed growth conflicts with the comprehensive plan, then the City should not allow it to move in that direction. Councilmember Carlson agreed with the Mayor and noted that he was very open to updating the OAA. When reviewing the current OAA, it was Carlson's view that due to the growth of the city, there is no longer adequate land available for residential development. Councilmember Thielen added that the city should grow in an orderly fashion. It was his view that the procedure for reviewing the orderly annexation area could be simplified, perhaps by establishing criteria that dictates when a specific amount of acreage is available for development, then the boundaries should be considered for adjustment. Councilmember Herbst stated that he would like to see the city grow in a compact fashion. It was his view that problems in the past were the result of developers purchasing land outside the city limits and then petitioning for annexation. He suggested that the City send a strong message that, although the marketplace and land owners would dictate what gets developed, the City would have the final say in determining how the city would grow. Councilmember Stumpf stated that much of the vacant land is being utilized, and it was his hope that the City and Township could review the urban service area and readjust the boundaries if necessary. Councilmember Thielen then requested that the Township Board members give their vision for the city since they are also a part of the community. Page 3 Special Joint Council Meeting - 5/20/97 Ken Scadden agreed with Councilmember Herbst that the City should identify what properties would be allowed to develop so that developers would purchase those properties rather than agricultural land. It was his view that there was plenty of land available for development to the south and west of the city, which would keep the city compact rather than growing only in one direction. Mayor Fair pointed out that the City does not own the land to the south and west and cannot control when it develops; however, since there are two parcels in the southeast that are ready for development, they should be included in the discussion of adjusting the boundaries. Ted Kopff stated that if development occurs as land owners request, then developers, rather than the Council, plan the city's growth. Councilmember Stumpf then reminded the group that the request for amending the urban service boundaries in the southeast was denied pending discussion between the City and Township regarding the urban service area boundaries and requested that discussion focus on the whole area. Franklin Denn stated that it should be everyone's goal to develop a compact city. Councilmember Thielen agreed but noted that it wouldn't be realistic to think that the city could be developed with straight boundary lines. In addition, he stated that because services can be provided cheaper in some areas than in others, the cost of providing those services would somewhat dictate what areas develop. Ted Holker agreed that the city is going to grow but that it should grow in ways that benefit the city. Mayor Fair concurred and noted that one reason for allowing development of the upscale housing proposed by Orrin Thompson is to help spread the tax base, which would help pay for infrastructure. He stated that as areas expand, other areas begin to meet the criteria for urban services and results in requests for development. Councilmember Carlson compared Monticello's growth to that of Elk River, which for many years concentrated mainly on housing and very little commercial; however, during the past two years, commercial development has increased dramatically because the population has grown enough to accommodate the needs of commercial enterprise. He stated that people want to live in Monticello, and Council must decide if they will be allowed to move here or will be turned away. 3. WHAT ARE THE PROJECTED POPULATION INCREASES OF THE CITY Moderator Pat Sawatzke noted that mid -growth projections were 6,390 for the year 2000, 7,940 for the year 2010, and 9,580 for the year 2020. Page 4 Special Joint Council Meeting - 5/20/97 Concerns were expressed by Council members that if the city does not have a mix of housing available, the township will experience pressure for scattered housing; and without growth, the city's services may deteriorate. It was estimated in the comprehensive plan that in order to help pay for available services, homes must be in the $135,000 range or above. 4. WHAT SHOULD THE CRITERIA BE FOR EXPANDING THE URBAN SERVICES LINE 5. HAS THIS CRITERIA BEEN MET 6. DEVELOP A PROCEDURE FOR CHANGING THE URBAN SERVICES LINE WHEN APPROPRIATE Councilmember Stumpf noted that when boundaries would be expanded would depend on the area and how much growth had been experienced in any particular area, which would occur quicker in some portions of the city and slower in others. He noted that the southeast area is very close to requiring review of the boundary lines, and the southwest area appears to be developing much slower. Councilmember Bruce Thielen suggested that it may be easier for the group to discuss the entire urban service area if broken down into smaller areas for discussion purposes. It was also noted that the criteria should be the same for all areas, even if broken into segments for discussion, but may be implemented differently. In discussing the current inventory of vacant land within the city limits, it was noted that much of the land available for development would not draw the upscale homes that the city needs for a good housing mix. Ted Holker noted that the comprehensive plan states that development should be encouraged to the south and southwest. He asked if the City had plans for new utility lines in this area. Mayor Fair and Councilmember Carlson answered that no land owner is interested in developing the property in the southwest area; therefore, the City could not justify extending lines to the area at this time. In addition, it was noted that the comprehensive plan also addresses the southeast area, which must be discussed when proposals are brought before the City. Holker suggested that the City could control the growth by defining specific areas for development of houses and industry, which would eliminate land owners dictating where the city will grow. Councilmember Herbst added that the City could dictate growth in the southwest by not allowing development in the southeast. This may not result in the type of housing desired by the City, but once the additional area in the current urban service area was developed, the Township and City could move on with discussions regarding boundary adjustments. Moderator Pat Sawatzke then noted that it was near the agreed closing time for the meeting. Page 5 Special Joint Council Meeting - 5/20/97 Councilmember Stumpf suggested that the City set another meeting date to discuss the urban service area boundary lines. Councilmember Herbst suggested that the City Planner have a map available at the next meeting showing the current inventory of housing and parcels available for development. Mayor Fair expressed his concern that the City and Township must look at current development pressures as well as long-term plans for future development. He stated that it was his intention to instruct City staff to place the item of amending the urban service boundaries for the Orrin Thompson Homes and Bridgeland Development parcels on the agenda for the May 27 Council meeting. It was his view that if a resolution could not be made on those two proposals, it would be very difficult to agree on amendments to the entire urban service area. In addition, the Mayor stated that he would also be proposing to the Council that the City serve the Township with a 60 -day written notice of withdrawal from the joint urbanization plan resolution; however, if the Township could agree to modifications of the southeast boundary to accommodate the two parcels proposed for development, the 60 -day notice would be withdrawn, and the Township and City could continue discussions on long-term plans for development. Councilmember Bruce Thielen stated that he would much prefer to set another meeting date to continue discussions and ask the Township to discuss the two parcels in question amongst themselves and address it at the next meeting. Franklin Denn expressed his disappointment with being given an ultimatum on annexation of the parcels in the southeast area since the meeting was scheduled to discuss the entire urban service area. Moderator Pat Sawatzke brought the meeting to a close by asking if the boards would like to set a date now for a future joint meeting or discuss it separately prior to scheduling a second meeting date. It was the consensus of Council to select a few possible dates at its meeting on May 27 and forward them to the Township Board for selection of a date that would work within their schedule. Moderator Pat Sawatzke then adjourned the meeting. KAre'h Doty Office Manager Page 6