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City Council Resolution 2026-27 (EAW Response - Tech Park with letter)CITY OF MONTICELLO WRIGHT COUNTY, MINNESOTA CITY COUNCIL RESOLUTION NO. 2026-27 A RESOLUTION ON EXEMPTION REGARDING CITIZEN PETITION FOR AN ENVIRONMENTAL ASSESSMENT WORKSHEET (EAW) FOR MONTICELLO TECH/MONTICELLO INDUSTRIAL PARK WHEREAS, on March 9, 2026, the Minnesota Environmental Quality Board (EQB) received a citizen petition requesting the preparation of an Environmental Assessment Worksheet (EAW) for what the petition deems the "Monticello Tech LLC/Scannell Data Center Project"; and WHEREAS, on March 9, 2026, the EQB forwarded the petition to the City of Monticello (the "City"), having determined the City is the Responsible Governmental Unit (RGU) for purposes of determining the need for an EAW regarding the project described in the petition; and WHEREAS, the area identified in the petition as the Monticello Tech/Monticello Industrial Park Project ("Monticello Tech") (approximately 505 acres) and the development scope described therein have already undergone a comprehensive environmental review via the Alternative Urban Areawide Review (AUAR) process; and WHEREAS, Minn. R. 4410.3610, subp. 1, permits a local unit of government to use an AUAR instead of an EAW to review anticipated residential, commercial, warehousing, and light industrial development and associated infrastructure in a particular geographic area within its jurisdiction as a valid substitute form of environmental review to the standard EAW; and WHEREAS, the City Council of Monticello previously reviewed the Draft AUAR, responded to public and agency comments, and officially approved and adopted the Final AUAR and the associated Mitigation Plan for the Monticello Industrial Area via Resolution 2026-02 on January 26, 2026; and WHEREAS, the adopted Final AUAR analyzed a "worst -case scenario" for development and comprehensively evaluated environmental impacts, including traffic and transportation, water resources, cultural resources, and cumulative potential effects; and WHEREAS, to date no specific project proposal or application has been submitted to the City regarding the use or development of the Monticello Tech site, and the AUAR process is designed to evaluate the impacts of a scenario rather than a specific building permit application. Any future specific project must comply with the conditions of the adopted 238774v2 Mitigation Plan; and WHEREAS, the AUAR process includes built-in safeguards for future development. Per Minn. R. 4410.3610, subp. 7, the AUAR must be updated if specific future project proposals exceed the development assumptions or impact thresholds studied in the adopted AUAR; and WHEREAS, if a specific project proposal exceeds the development assumptions or impacts studied in the adopted AUAR, the City will utilize the update procedures under Minn. R. 4410.3610, subp. 7, rather than the EAW petition process. Furthermore, the AUAR must be updated every five years until full build -out. These mechanisms ensure continued environmental oversight without the need for an EAW at this time; and WHEREAS, pursuant to Minnesota Rules 4410.3600, subp. 2, projects reviewed under an accepted alternative review procedure, such as an AUAR, are exempt from environmental review under parts 4410.1100 to 4410.1700 (the EAW petition process); and WHEREAS, pursuant to Minnesota Rules 4410.3610, subp. 2.A, specific residential, commercial, warehousing, and light industrial development projects within the boundaries of an adopted AUAR are exempt from environmental review so long as the project complies with the conditions of the adopted Mitigation Plan; and WHEREAS, the City of Monticello reviewed the petition and applicable state regulations and have determined Monticello Tech is exempt from conducting the requested EAW on the grounds that the necessary environmental review has already been completed and adopted. NOW THEREFORE, BE IT RESOLVED by the City Council of Monticello, Minnesota: 1. Exemption. The City Council hereby affirms Monticello Tech is exempt from conducting an EAW as requested in the petition for an EAW for Monticello Tech received on March 9, 2026, because the environmental review for the subject area has already been completed and adopted via the AUAR process. 2. Findings of Fact. The City Council adopts the findings in the letter attached hereto as Exhibit A in support of this exemption, including but not limited to the following: a. The City exercised its legal authority under Minn. R. 4410.3610 to use the AUAR process. b. The Final AUAR and Mitigation Plan were adopted on January 26, 2026, more than a month prior to the receipt of the petition. c. The project is exempt from the standard EAW petition process under Minn. R. 4410.3600, subp. 2 and Minn. R. 4410.3610, subp. 2.A. 238774v2 d. Future specific projects within the AUAR boundary are subject to the safeguards and update procedures outlined in Minn. R. 4410.3610, subp. 7, rather than the EAW petition process. 3. Direction to Staff. The City Administrator is directed to provide the written notification of this decision, attached hereto as Exhibit A, and resolution to the petitioner's representative, the project proposer, and the Environmental Quality Board (EQB) within five (5) working days, in accordance with Minnesota Rules 4410.1100. Adopted by the City Council of the City of Monticello, Minnesota this 13t" day of April, 2026. MONTICELLO CITY COUNCIL i � 1 • • • .M a,• ATTEST: 238774v2 EXHIBIT A April 14, 2026 Petitioner's Representative Andrew S opher 5944 Badger Street Monticello, MN 55362 Sarah Lerohl Environmental Review Program Minnesota Environmental Quality Board 520 Lafayette Road North St. Paul, MN 55155 sarah.lerohl@state.mn.us RE: Notice of Decision — Exemption from EAW Requested in Petition for an Environmental Assessment Worksheet (EAW) regarding Monticello Tech, LLC. Dear Mr. Sopher, The City of Monticello ("City") acknowledges receipt of the citizen petition requesting an Environmental Assessment Worksheet (EAW) for the development referred to as Monticello Tech/Monticello Industrial Park ("Monticello Tech"). The petition was received by the Environmental Quality Board (EQB) on March 9, 2026, and subsequently forwarded to the City, designated as the Responsible Governmental Unit (RGU), on the same date. This letter serves as the City's formal Notice of Decision regarding the citizen petition for an Environmental Assessment Worksheet (EAW) regarding Monticello Tech. This decision was affirmed by resolution of the City of Monticello City Council, a council that meets only on a periodic basis, on April 13, 2026. After a thorough review of the petition, the procedural history of the subject area, and applicable state regulations, the project area is exempt from environmental review. The City's decision is based on the following Findings of Fact and Conclusions of Law below. Findings of Fact 1. Prior Completion of Environmental Review: The geographic area and development scope identified in the petition as Monticello Tech (approximately 505 acres) has already undergone comprehensive environmental review via the Alternative Urban Areawide Review (AUAR) process. This process serves as a substitute form of environmental review to the standard EAW and EIS process. 2. Adoption of the Final AUAR: On January 26, 2026, the City Council of Monticello officially approved and adopted the Final AUAR and the associated Mitigation Plan via 238774v2 Resolution 2026-02. 3. Timing: The Final AUAR and Mitigation Plan were adopted more than a month prior to the City's receipt of the petition for an EAW on March 9, 2026. 4. Scope of Analysis Already Completed: The adopted Final AUAR analyzed a "worst -case scenario" development scenario and comprehensively analyzed the environmental impacts raised under such a scenario, including but not limited to: • Traffic and Transportation: A full analysis of intersection capacity and safety. • Water Resources: Analysis of water appropriation, wastewater, and stormwater management. • Cumulative Potential Effects: An evaluation of how this project interacts with other regional developments. 5. Future Environmental Protections: The AUAR process is designed to evaluate the impacts of a scenario rather than a specific building permit application. Any future specific project must comply with the conditions of the adopted Mitigation Plan. Moreover, the AUAR process includes built-in safeguards for future development. Per Minn. R. 4410.3610, subp. 7, the AUAR must be updated if specific future project proposals exceed the development assumptions or impact thresholds studied in the adopted AUAR. If a specific project proposal exceeds the development assumptions or impacts studied in the adopted AUAR, the City will utilize the update procedures under Minn. R. 4410.3610, subp. 7, rather than the EAW petition process. Furthermore, the AUAR must be updated every five years until full build -out. These mechanisms ensure continued environmental oversight without the need for an EAW at this time. Legal Basis for Exemption The exemption is grounded in the Minnesota Environmental Policy Act (MEPA) rules, which prevent duplicative environmental reviews once an alternative review process is complete. Authority to Use Alternative Review: Minnesota Rules 4410.3610, subp. 1, governs the AUAR process and explicitly states: A local unit of government may use the procedures of this part instead of the procedures of parts 4410.1100 to 4410.1700... to review anticipated residential, commercial, warehousing, and light industrial development and associated infrastructure in a particular geographic area within its jurisdiction... By adopting Resolution 2026-02, the City exercised its legal authority to use the AUAR process instead of the standard EAW petition process outlined in part 4410.1100. Because the City has already completed and adopted the environmental review for this specific geographic area under Rule 4410.3610, the petition requesting an EAW under Rule 4410.1100 is legally inapplicable. The environmental review for this area is complete. 238774v2 Exemption from EAW Petitions: Minn. R. 4410.3600, subp. 2 states: If the EQB Exemption from EAW Petitions accepts a governmental unit's process as an adequate alternative review procedure, projects reviewed under that alternative review procedure shall be exempt from environmental review under parts 4410.1100 to 4410.1700... Because the AUAR process is an EQB-accepted alternative, the standard EAW petition process (governed by parts 4410.1100) does not apply to this project now that the AUAR is adopted. Exemption of Specific Projects: Upon completion of the AUAR review, specific development projects within the boundaries that are consistent with the development assumptions and mitigation plan are exempt from review under parts 4410.1100 (the petition process). Minn. R. 4410.3610, subp. 2.A clarifies "residential, commercial, warehousing, and light industrial development projects and associated infrastructure within the boundaries" of an AUAR "are exempt from review under parts 4410.1100 to 4410.1700 ... as long as the approval and construction of the project complies with the conditions of the plan for mitigation..." Since the AUAR was adopted via Resolution 2026-02 on January 26, 2026, specific development projects within the boundaries that are consistent with the Mitigation Plan are legally exempt from the EAW petition process. Conclusion The City officially adopted the Final AUAR and Mitigation Plan via Resolution 2026-02 on January 26, 2026. This action completed the necessary environmental review for the subject area satisfying the requirements of MEPA. Consequently, the project is exempt from the standard EAW petition process under Minnesota Rules. The AUAR serves as the valid, completed substitute form of environmental review for this area. Therefore, based on the adoption of the AUAR, the project is exempt from conducting an EAW as requested in the petition by the City on March 9, 2026. Sincerely, Rachel Leonard City Administrator City of Monticello 238774v2