Agenda - Planning Commission - 03/01/2012

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Orderly annexation agreements often include other provisions that address the loss of taxes that townships will experience --for example, a city may reimburse a township the amount of tax revenue yielded by an annexed parcel, with the reimbursement generally phased out over a period of io or more years. Sauk Rapids Annexation agreements can include zoning standards that establish a logical transition from rural to urban land use as utilities are extended. One such arrangement is between of the city of Sauk Rapids, a small city bor- dering the Mississippi River in the St. Cloud metropolitan area, and its two adjoining townships, Sauk Rapids and Minden. The agreements establish joint,planning boards and zoning ordinances for each township. Both ordinances include clear statements of purpose: "to maintain orderly and controlled development which does not conflict with •the existing development plans of the City of Sauk Rapids nor the desire within the Township to preserve an agricultural and rural character." Essentially, the areas will remain in agricultural zoning, at a density of one unit per 40 acres, until the city is ready to annex them. The agreements stipulate that the joint planning boards will not sup- port rezonings to nonagricultural uses prior to annexation, and those parcels already zoned for nonagricultural use will require an- nexation prior to any further development. Sauk Rapids Community Development Director Todd Schultz explains that agree- ments with Sauk Rapids Township go back to the late 198os and have remained highly effective. "The city has never forcibly an- nexed anyone, except for some township 'islands' within the city that were absorbed about 25 years ago," says Schultz. In Sauk Rapids annexations require a pe- tition by the property owner or developer and approval of either the city or the township. This approach tends to result in numerous small annexations rather than a smaller number of city - initiated annexations of larger tracts of land. One might expect that this would create a patchwork or leapfrog pattern of annexa- tions. Not when municipal sewer and water services are involved. Schultz explains that "economics plays a huge role —if city sewer and water aren't available, the developer must pay for the extension of services, including to any properties in between the parcel to be annexed and the city boundary. This adds an element of risk, which most developers aren't willing to take. Therefore, annexations tend to be contiguous." Relations with Minden Township have been more contentious, perhaps because the annexation area includes a narrow band of preexisting large -lot residential and com- mercial development bordering State Highway 23. These areas are zoned consistently with existing land uses, with design standards for commercial building materials and screening. Because the joint planning board that man- ages the annexation area requires a unani- mous vote for any zoning change, it has been hard to reach agreement on the Level of new development in this area. As is common with this kind of fringe development, it is increas- ingly difficult for the city to extend utilities to this area in a cost- effective way. Sartell The neighboring city ofSartell is surrounded by (and surrounds, in some locations) LeSauk • Township. Under an orderly annexation agree- ment dating from the 19805, both areas are under the jurisdiction of a joint planning board—which also serves as the city plan- ning commission—with equal representation from both jurisdictions. However, according to Planning DirectorAnita Rasmussen, AICP, this arrangement didn't serve the city especially well —the township board members had little interest in city issues, and overlapping county jurisdictions (the city straddles a county line) created greater confusion. The agreement is planned to change in 2012, reverting back to a city -only planning commission. Sartell's primary challenge, however, is the fragmented nature of city/township boundaries. Substantial portions of the town- ship bordering the Mississippi River are devel- oped at urban densities with inadequate wells and septic systems, but the cost of extending city utilities to these areas is more than what could be recouped by property assessments. The Coalition of Greater Minnesota Cities, an advocacy organization, has identified an $11 million shortfall, far beyond what the city can subsidize. The lesson may be that orderly annexation agreements do not necessarily guarantee an orderly annexation process. Mankato A similar approach is used by the city of Mankato, a regional center on the Minnesota River, and three adjacent townships, as well as Blue Earth County. The city uses different ap- proaches with each township, based on devel- opment patterns and township preferences. The city's agreement with Mankato Township, negotiated in 1998, applies to an area within two miles of the city boundary where the city has subdivision review authority. The agree- ZONINGPRACTICE 1.12 AMERICAN PLANNING ASSOCIATION I page 3