8. SR 12-11-1995ry of
lk� River
ITEM 8.
MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
Mayor and City Council
Steven B. Ach, City Plannerllo( �
December 11, 1995
Comprehensive Plan
I. Urban Service Boundary
At the last meeting to discuss the Comprehensive Plan, a considerable
amount of discussion centered on expanding the urban service area.
Understandably, residents and business owners alike were all concerned
about the cost of utilities and how individual property owners would be
impacted by an expanded urban service area. Unfortunately, the exact costs
associated with extending trunk utility has not been determined at this time.
• Preliminary analysis has indicated the costs associated with extending
utilities could be supported by the affected properties; however, this will need
to be further researched and confirmed prior to a project taking place. If it is
determined at the time of a project that the utilities cannot be extended in a
cost effective manner, the likelihood of the project taking place at that time
will most likely be diminished.
At the last Council meeting it appeared as though several residents were
under the impression that if their property was included in the urban service
area, they would be immediately affected and assessed for some future utility
project. Until there is a project, property owners will not be affected by an
expanded urban service area. Furthermore, generally those residents
directly benefiting from a utility extension will be assessed, not the entire
urban service area. At Monday night's meeting, I will present to the City
Council some scenarios explaining how utilities could be extended
throughout this eastern area over time.
Once again, it should be emphasized that the urban service area is projected
to accommodate growth for many years. Historically, the rate at which
utilities have been extended is a direct result of requests from developers.
Generally speaking, if the property owners are not petitioning to have
utilities extended, the Council has had no reason to proceed with a project.
• (There has been and will continue to be exceptions to this scenario.) It is
13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • (612) 441 -7420 • Fax: (612) 441 -7425
Comprehensive Plan Page 2
December 11, 1995
• envisioned that the County Road 12 and 13 corridors would develop over time
at the request of landowners (developers). This pattern of growth will be
very similar to the western area of the City as well as the Meadowvale
Heights, Nord and Brady property.
II. Why Should There Be An Expanded Urban Service Area?
First of all, if the City Council does not envision there ever being the need to
expand the City's urban limits, the boundary does not have to be changed. If
the urban service boundary is not adjusted to accommodate long term growth
at an urban density, the result will be a large "belt" around the City's urban
core of 2 to 2 -1/2 acre lots. Again, if this is the pattern of growth the City
Council desires, there is no need to expand the urban district.
However, as presented to the Steering Committee and Planning Commission,
there are some downsides to this low density pattern of development. It has
been documented in several studies and various articles that this pattern of
growth is "inefficient" and burdensome on the City' ability to provide services
and utilities in a cost effective manner. This is not to suggest that the entire
City of Elk River needs to develop at an urban density. What I would
encourage the Council to consider is trying to achieve a land use and density
mix that will benefit the City as a whole along all lines of concern including
• property taxes, commercial opportunities, providing employment
opportunities and maintaining the sense of community within the City, etc.
If the urban service area is not expanded, commercial and industrial areas
could still be developed; however, based on requirements set forth in the
State Building and Fire Codes, there will be restrictions on the type and size
of businesses that can be developed. For example, it may not be economically
feasible for an industrial or commercial company to construct a large facility
which is required to be sprinkled. The cost involved to provide an on -site
system to meet the sprinkling demands may be too costly or unacceptable to
the City's fire chief. Therefore, the benefit of providing city water and sewer
for commercial and industrial development allows a maximum use of the
property, does not restrict the size or type of use, and provides greater
environmental protection for businesses that may misuse their septic systems
by disposing of materials improperly.
Another benefit to identifying the ultimate service area at this time is to
inform current and new residents of the City's plans to manage growth. Elk
River will continue to have growth pressures applied by residential,
commercial and industrial developers. The challenge before the City Council
is to manage this inevitable growth in a cost effective manner while
maintaining the characteristics unique to Elk River. With these pressures
and constantly changing conditions, it is important a long range plan be
adopted so the City can plan for development and not react.
s:council:complan
Comprehensive Plan
December 11, 1995
Page 3
• III. What Are the Costs Associated With Development?
Attached to this memo are summaries from reports along with articles that
discuss the costs and revenues associated with development. The following
sources of information are included for the Council's review:
• Executive Summary - A summary of a report by Resource Management
Consultants, Inc., entitled: "Development in Wright County - The
Revenue /Cost Relationship ";
• Article by Lee Ronning of the Land Stewardship Project - "Farm Land's
Top Yield Isn't Residential Taxes ";
• Excerpt from a report by the Environmental Quality Board, entitled: "A
Question of Balance and Managing Growth in the Environment ";
• Excerpt from a book by Randall Arendt, entitled: " Rural By Design ";
• An Executive Summary along with Impact Analysis for each zoning
district from a study done by the City of Lakeville, entitled: "Growth
Management Strategies for the City of Lakeville ".
• In summarizing these articles, the following points should be highlighted:
• The costs of growth for low density development are higher than growth
at a higher density.
• Quote: "It is fiscally sound to concentrate growth around areas with
existing infrastructure and discourage growth on large lots and farming
areas."
• Relatively high density development close to existing urban infrastructure
provides less expense locally and to the state over the long term.
Residential projects that consume large amounts of land often costs
communities more than they give back in property taxes.
• The small clusters of one and two acre residential lots interspersed with
agricultural areas have contributed to uncontrolled development and
imposes a significant financial and environmental problem for Otsego.
• Large lot residential zoning, often enacted by communities that would like
to preserve open space such as wood land and farm land is to a large part
responsible for the high levels of land consumption experienced by
communities.
s:council:Complan
Comprehensive Plan
December 11, 1995
Page 4
• • Studies have shown that the net public cost resulting from low density or
"sprawl" development are considerably greater than those resulting from
higher density or "cluster" development for the same number of dwelling
units. Put simply, it costs more to run school buses and emergency
vehicles, to repair roads, and to collect garbage when homes are spread
out over more miles of roads than when houses are located more closely
together as in a typical 19th century town.
• For every $1.00 of revenue collected from:
- residential land, $1.25 is spent on services;
- industrial and commercial land, $.19 is spent on services.
• The net public costs were approximately three times higher ($2,200.00 per
unit) where the density was one unit per 5 acres than where the density
was 4.5 units per acre ($700.00 per unit).
• Lower valued homes tend to have a negative fiscal impact.
• Higher valued homes tend to have a positive fiscal impact.
• The higher the density of housing the more return; however, there are
• diminishing returns, after a certain point, in market value and density.
• Twin homes, quads, townhomes and high value homes provide the best
fiscal investments in housing.
• Scattered development puts an enormous strain on the City's operating
capital budgets and negatively impacts commercial areas trying to
establish service areas.
If the City Council is interested in reading any of these reports in their
entirety, I'll be happy to provide the Council a complete copy of those reports.
IV. What Type of Development Guidelines Will There Be For Property
Within The Urban Service Area?
One of the fundamental elements of the Comprehensive Plan is to manage
growth in an orderly manner and to encourage growth from the central city
outward. In order to allow this growth to occur along with the extension of
utilities, certain growth control policies will have to be adopted for property
within the urban service area to allow the efficient extension of utilities.
Although no specific guidelines have been adopted at this time, future
ordinances will have to address the minimum lot size which property can be
subdivided without water and sewer. For example, it may be determined
that the minimum lot size prior to receiving water and sewer will be 10 acres.
Generally speaking, the larger the lot sizes, the greater the flexibility
s:council:Complan
Comprehensive Plan
December 11, 1995
Page 5
property owners will have to subdivide their land when water and sewer is
available. This in turn creates a greater efficiency for the property owner to
help offset the costs of city water and sewer. Furthermore, the larger the lot
sizes, the easier it becomes to extend utilities in an orderly fashion without
involving numerous landowners who may not be interested in receiving
utilities at that time.
Several residents at the last Comprehensive Plan meeting expressed concern
about not being able to do "anything" with their property until sewer and
water is made available. Within the areas that are designated for residential
development, property owners will be able to subdivide their land to the
minimum lot size, whichever that may be, and utilize their property as a
residential use and other uses associated with that particular zoning
designation. On the other hand, the commercial and industrial districts are
not as clearly defined and will need further discussion to formulate some
reasonable guidelines.
V. Can Overlay Plats Be Utilized In Subdivisions Prior To Sewer And
Water?
The general concept behind overlay plats is to allow the subdivision of land
into slightly larger lots which can then be re- subdivided in the future when
water and sewer is made available. I believe this particular concept works
much better in rural areas that are envisioned to stay rural where the
minimum lot size may be larger today than it will be 10 or 15 years down the
road. Some of the problems associated with this concept within future urban
districts include the following:
The parties (Council, developers, staff) who were originally involved in
establishing the overlay district are often not a part of the actual
implementation when sewer and water is finally made available. This
leaves confusion for future councils and staff and a lot of flexibility for
debate on the intent of the overlay plat.
As overlay plats develop with numerous homes and property owners that
have invested in well and septic systems, there is the likelihood that even
though there is an overlay plat that allows further subdivision, the
property owners may flat out have no interest in utilities. This simply
sets up a scenario where, although it has been planned to serve an area,
the property owners enjoy their slightly larger lot and do not have any
interest in the sewer and water.
• The use of overlay plats within the future urban service district may
become more predominant than one or two isolated cases. Therefore,
further straining the efficient extension of public utilities, and possibly
s:council: Complan
Comprehensive Plan
December 11, 1995
Page 6
working counter - productively to manage and slow growth from the central
core of the City.
VI. Restricted Areas For Development
At Monday night's meeting, a brief presentation will be made, highlighting
the wetland, woodland and floodplain areas that are scattered throughout
the eastern area of Elk River. These natural areas may create some
challenges for extending water and sewer; however, will also act as natural
amenities for residential development. There are maps available in the
Comprehensive Plan that highlight these restricted areas. I will be providing
some colored maps at Monday night's meeting to facilitate in the discussion
on this issue.
VII. Cluster Development
Attached is some information on cluster development. Cluster development
is a subdivision technique the City should consider because of the benefits it
has to offer. The illustrations included as part of the attached information
gives a straightforward explanation to the idea behind "clustering". If the
Council has any further questions on this concept, I will be happy to answer
them at Monday night's meeting.
• It should be made clear the Council will not be asked Monday night to adopt
a specific clustering concept. The Comprehensive Plan suggests "exploring
the clustering concept" and determine through an ordinance amendment the
specific elements involved to allow clustering development. This ordinance
amendment will be brought before the Planning Commission and City
Council at a later date.
VIII. Land Use Plan
Monday night, the City Council will be asked to adopt the Comprehensive
Land Use Plan which sets forth the long range land use of property
throughout the City. As discussed later in this memo under "Necessary
Actions ", at a later meeting rezonings will have to be brought forward to the
City Council so that the land use plan and zoning map are consistent with
each other.
As a follow -up at the last Council meeting, Mr. Hetland made it known that
his property at 165th and Highway 10 had the land use changed to Light
Industrial. Staff has researched this and Mr. Hetland is correct that land
use has been changed; therefore, the land use plan map will be changed
accordingly to reflect this previously approved land use plan amendment.
IX. Necessary Actions
is Once the Comprehensive Plan is adopted, there will be several "necessary
actions" that need to take place to implement the Comprehensive Plan.
s:council:Complan
is
Comprehensive Plan
December 11, 1995
Page 7
These necessary actions are listed at the end of each section of the Plan (i.e.,
residential, commercial, industrial, utilities). Some of the immediate actions
the Council can expect to discuss in the next two to three months include:
• Hold a public hearing on the Park and Recreation Plan
• Hold a public hearing on the Transportation Plan
• Hold a public hearing to consider rezonings to comply with the
Comprehensive Land Use Plan
• Review development standards for properties within the urban service
district (i.e., lot size, interim uses).
• Consider "cluster" development ordinance
• Initiate a focus study on the downtown area
• Study the commercial corridor between 193rd and 197th.
Implementation of the Comprehensive Plan will be an ongoing effort. As
mentioned at the beginning of this process, the Plan is not static. It will have
to be amended occasionally as the times and conditions change within the
City.
In closing, if the City Council has any questions prior to Monday night's
meeting, please feel free to contact me at 441 -4902.
s:council: complan
D
•
EXECUTIVE SUMMARY
Py
This study assesses the revenues and costs connected
with growth at different densities in various sections of
Wright County, Minnesota. In particular, the cost /revenue
relationship of growth near existing infrastructure such as
water, sewers, storm sewers and paved roads is compared with
growth in rural areas that lack established infrastructure.
Three residential development scenarios were chosen for the
study :
1) a relatively high- density* development of 50 units
of rental apartments, condominiums and single fam-
ily homes in the City of Buffalo. The units oc-
cupy a little over five acres.
• 2) a subdivision of 50 units of single family wo
three and four bedroom homes, each on one acre, in
the Township of Otsego. The units occupy 50 acres.
3) 50 units of two, three and four bedroom homes, each
on seven and one -half acres, in -the Township of
Silver Creek. The units occupy 375 acres.
The units for the Buffalo City scenario are connected to
city water and sewers. The Townships of Otsego and Silver
Creek contain no established infrastructure; therefore, the
units use wells and septic systems.
* "relatively high density" in this case does not approach
the density of highrise development found in major metro-
politan areas. Rather it includes a mixture of detached
houses on 1/4 acre lots, semi- detached townhouses and
small apartment buildings. These densities are compatible
with the character of many small cities and towns in Min -
nesota.
i
• In each case, the residential county, city, township and
school district costs are compared with local revenues col-
lected to support these costs. The findings of this study
illustrate:
1)
the costs of growth for low density development
in the Townships of Otsego and Silver Creek
are extremely high when county, city, township
and school district costs and revenues are
considered. The average per unit revenue /cost
deficit for Otsego is $485.85. For Silver
Creek, the per unit deficit is $499.22.
2)
the costs of growth are much lower for a
relatively high density subdivision in the City
of Buffalo with established infrastructure.
The average per unit revenue /cost deficit is
$114.62.
3)
the differences will be even more marked in the
near future. Otsego and Silver Creek face sub -
stantially higher capital costs within the next
•
two to three years (sewage treatment, water and
added schools for Otsego and added schools and
roads for Silver Creek). Buffalo City's infra -
structure will be adequate for the next decade.
4)
besides proving the least .cost effective, the
Silver Creek scenario used up more -land and con-
tributed to the decimation of farmland. Higher
density development in the City of Buffalo pre-
served land without threatening existing farmland
or forestland.
•
In sum, higher density development close to existing
,urban infrastructure proved less expensive than low density
development in areas with no established infrastructure. The
differences are exacerbated in the near term zince the Town-
ships of Otsego and Silver Creek face sharply higher capital
investment within the next two to three years. On the other
ii
• hand, Buffalo's capital costs can be expected to remain
•
stable for the next ten years.
This study underlines the fact that it is fiscally sound
to concentrate growth around areas with existing infrastruc-
ture and to discourage growth on large lots in farming areas.
State support of farmland preservation is a fiscally practi-
cal method to achieve these goals. It enables farmers to re-
sist selling their land for large tract development. As a
second step, it encourages less expensive settlement around
existing infrastructure. Over the long term, farmland pres-
ervation protects an invaluable resource and it helps to pro-
tect farming counties from the onslaught of unplanned growth.
iii
•
•
SUMMARY
It is apparent that relatively high density development
close to existing urban infrastructure proves less expensive
locally and to the state over the long term.
Although three bedroom homes have somewhat higher costs
in Buffalo than in Otsego and Silver Creek, it must be
remembered that the capital costs of infrastructure are al-
ready figured into the Buffalo city budget. We have also
figured capital costs for school construction into the Buf-
falo budget. New additions to the school will be financed by
bond issues that have already been issued. In addition,
state contribution to the City of Buffalo budget will double
next year because of the city's growth. Therefore, long term,
local costs for the City of Buffalo budget can be expected to
decrease or at least remain steady.
Otsego, on the other hand, must still face the costs of
establishing infrastructure and over the next five years will
face new school costs as well. Silver Creek's added school
costs within two to three years will take the township's av-
erage per unit cost even higher in relation to Buffalo than
it is now. The new costs will also mean that two and three
bedroom homes in that township will become a much larger fis-
cal burden than if the homes were built in the City of Buf-
falo.
42
•
As more and more homes are added in Silver Creek, some
roads will be added. Upkeep of these roads will cost $4,400
a year, and added school bus routes will cost $2.19 a mile.
In studying the effects of growth in three communities
-- in the City of Buffalo at a relatively high density, close
to infrastructure; in Otsego, on one acre near an established
population center; and in Silver Creek,on 7 1/2 acres in a
rural area, it became apparent that the revenue /cost rela-
tionship is healthiest in Buffalo. In addition to current
figures, over the long term, both Otsego and Silver Creek can
be expected to have sharply higher local costs, while
Buffalo's can be expected to remain relatively steady, at
. least over the next decade.
Of major importance as well, is the fact that when
houses are put on 7 1/2 acre lots, as is true in Silver
•
Creek, 375 acres of land are used for a 50 unit development.
Five acres are used Buffalo for 50 units when housing is de-
veloped close to infrastructure and at higher density.
It is especially important to Minnesota right now to
find the least expensive way to provide service's. Minnesotans
now pay more in property taxes than they do in income taxes.
The pressure on the state to increase state aids for property
tax relief grows yearly. Already these aids cost $3 billion a
43
• year and comprise 65 percent of the state budget.* In
1990 -91, state aid to localities will rise over six percent.
The most logical way to assure that these costs do not
•
continue their steep ascent is to make sure that growth
progresses at a rate that is affordable both to the state and
to the locality.
This study underlines the fact that it is fiscally sound
to concentrate growth around areas with existing infrastruc-
ture and to discourage growth on large lots in farming areas.
State support of farmland preservation is a fiscally practi-
cal method to achieve these goals. It enables farmers to re-
sist selling their land for large tract development and as a
second step encourages less expensive settlement around ex-
isting infrastructure. Over the long term, it preserves an
invaluable resource and it helps to protect farming counties
from the onslaught of unplanned growth.
*these figures are included in a 1/20/89 column in the Min -
neapolis Star Tribune by Minnesota Governor Rudy Perpich.
44
•
on
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CCE(09 Si0 Tlf�'
()NE DvT A SALE
W i4a
I?
SPECIAL
c Revenues per square foot. an important measure,
store was a respccmble 5221. By contrast, the department
stores of May Department Store CO.. St. Louis,
tion- recorded sales per foot of 5179 (though its Lord &
d Taylor division stood at S212). Dillard Department
,ly go Stores Inc., Little Rock. generated sales per foot of
$142.
the And one could probably credit the sale - bonanza
ran And
with blunting the penetration of Nordstrom
une Inc. th tWashington. g D C market in the lat retailer 980s,
to a
st lit- it romped all over local, established chains there.
last
l W9
Dayton's has done a credible job detending its turf.
Still. Nordstrom Inc. has won over a lot of local
customers. Nationally, it recorded sales per square
foot of 5381 in 1993. Importantly, it has accom-
Forum
FannIand's top
isnIt residential taxes
By Lee Ronning
Arguments for saving fertile
farmland from being destroyed by
urban sprawl often centbr on the
environmental and social impacts of
rampant development patterns. But
for better or worse. it's the financial
bottom line that carries real weight
with decision - makers. As a result,
the envhonmental and social havoc
by specific land uses. On average,
farmland adds twice as mine t to
loc tax bases as It eman k
loin serTvuesices according to the study.
Using data gathered from the
Minnesota Department of Revenue.
Office of State Auditor and the
Minnesota Department of
Education, the anal sis found that
in those three communities, or
every Z in taz revenue
generated y residcn-
tta eve opment, on
average S 1.04 was
spent to provt a ser-
vices such as sewers
an s_trcots. Arco ing
to a study conducted in
Wright County by the
Minnesota Department
of Agriculture, the fur-
ther away from exist-
ing infrastructure
development is locat-
ed, the more costly it is
to provide services.
We conducted the
&rce- community study
A providing the kind of
bottom -line information
lready been well -docu-
mented in other states. we hope
this data will help city officials bet-
ter evaluate the impact of land use.
decisions on municipal and school
district finances.
The three communities studied
were chosen because they represent
cities undergoing various stages of
development within 25 miles of the
Minneapolis -St. Paul downtown
area. Independence is growing
FORUM to page 9
That wasstt ie conclusion of a
study recently conducted by the
Land Stewardship Project and the
American Farmland Trust in three
metro -area communities:
Farmington, Lake Elmo and
Independence.
Entitled, Farmland and the Tact
Bill: The Cost of Communih=
Services in Three Minnesota Cities,
the study traces the flow of rev -
enues and expenditures generated
Stuart A Chamblin 111288.2135
an a .
Editor. Kevin Maler 288 -2102
Middspeed projects cdKW- AM Nes 2118 -2108
Sud repotw, Svc m Euity 2&1104
,ldwteinG Marle� Mad�t �°��, Aetot
Volume 12, Number 37
February 17. 1 995
Director of Advertising Sales;
Mark Neulahr 288 -2123
Senor Account hwei C lot i ka-
Accow &=Wver Jolene K 8dt Nta&- Haupt nldacl
HeAk�.I d Johnson, ovia Aare
Business Mvitwout A=aunt Enuthe: fturten Tubbs
Ad•adyer Cowd'uutor Ross Pouet 288.2136
FORUM
irom page 8
?slowly, while Lake Elino is•experi-
-encing moderate growth and
Farmington is being developed
rapidly.
Perhaps the must ironic finding
of this study is that sprawling resi-
deniiafrr ee effo ments can- resu 1 in
less funding for schools. In
Minnesota, state aid is used to hold
down property taxes. Because this
aid is usually distributed based on
population or school enrollment, it
increases the share of education
funding attributable to the residen-
tial sector. Minnesota's school aid is
dependent on the total property val-
uation of a school district. as well as
being a function of enrollment, thus
school districts receive less slate aid
per student as growth occurs and
properly tax bases expand.
Normally, the expanded tax base
source
to
ser-
:found. This analysis points out that
Minnesota's tax structure makes it
very difficull to determine who is
'paying the true costs of sprawling
residential development and who is
benefrlting from it.
And it notes that farmland protec-
tion may be financially beneficial not
only because of its contribution to the
tax base, but also because it holds
down property tax valuation. Lower
property tax valuation leads to more
state aid, which reduces the share of
local government costs paid for by
local residents and property owners.
The lax revenue as compared to
Cost of services ratios this anal sis
moorts are simi at to those found in
revenue from Fes
men[ was lost wl
delivering public services
— from . marls, sewers and parking
lots to education and public safety
— was considered. A study released
Iasi year by Utah Slate University's
economics department found that
for every $1 in revenue collected by
residential r art tax revenue in
One o t fat states counties, I. 7 in
services was being provided.
ese studies come at a It=
when sprawling growth is destroy-
ing Minnesota's farmland at an
alarming rate. The 20 -county
growth corridor from St. Cloud to
the Twin Cities to Rochester is the
fastest-'growing metropolitan area
from the northern plains to the east -
em seaboard. The seven - county
Twin Cities metropolitan area has
lost 235 square miles of agricultural
Enid to urbanization since 1970.
Since 1980, most of that growth has
occurred in second -ring suburbs.
The Twin Cities area is the third
least dense y populalod metropolitan
region in tie country, but one of the
fastest growing geographically. The
amount o metro -area an evoted
to urban land uses has increased by
42 percent since 1970, almost dou-
ble the 22 percent population
growth rate during this same period.
These trends are accelerated by
an all too common attitude that
farmland is property that is "vacant'
or "wasted;' until i( sprouts subdivi-
sions. But ag acres fuel a powerful
econbmic engine in the region.
Despite rapid urbanization in these
counties, metro-area agricultural
activity produced more than 5500
million worth of farm output and
generated 7,000 jobs in 1990.
Nationally, 56 percent of agricultur-
al production comes from counties
on the edge of cities.
Farmland and the Tux Bill con-
cludes (hat Minnesota and metro-
area communities should continue ti
support existing farmland proteclion
programs such as Ntetropolitan
Agricultural Preserves and Green
Acres. For ecotionric and environ-
mental reasons, the study recom-
mends exploring other techniques Ic
retain this valuable resource base,
such as purchase of conservation
easements.
The statistics reported in this
study will justify such measures.
Perhaps even more importantly,
they will help put to rest The fallacy
dial the most valuable crop farnilam
can produce is residential taxes.
Lee Running is program director of the
Land Stewardship Project in Marine Oi
St Croix.
•
Otsego: Unplanned Growth
• The, experience of Otsego illustrates the effects of poorly managed growth. A
township until 1990, the city is struggling with the financial and environmental
problems resulting from unplanned residential growth.
Before passage of the Wright County comprehensive plan in 1978,.Otsego Town-
ship was developed in a shotgun manner, with small clusters of one and two acre
residential lots interspersed within agricultural areas. Uncontrolled development.
poses significant financial an environment pro ems for Otsego. Rapid urban-
zatlon resulted in serious flooding a.nd drainage problems requumg the township
to issue more than $450,000 in bonds to remedy these troubles.
Sewage treatment remains a paramount concern of local officials. The permeable
soil conditions,. relatively high housing densities and proximity of wells to on -site
sewage systems in northeast Otsego heighten the threat of ground -water contami-
nation. However, payments for a municipal sewage treatment system would equal
nearly a third of the city's annual budget. Sewage treatment alone would require
about a 50 percent increase in township taxes, on top of a one -time utility assess-
ment. Assessments would be high, given the relatively large road frontages of the
one- and two -acre lots.
• Otsego shows what can happen when growth occurs without planning or an
attempt to preserve farmland. The costs are often felt decades later. Even when
good planning is applied, it can be too late to check the environmental problems
and prevent the high costs of remedial action.
is
`Ru,eA-t-
CHAPTER
17
/r
The Economics of
Preserving Open Space
ELIZABETH BRABEC
OVERVIEW U44 THE REAL COSTS OF ibic
Within the American economy, open land is com-
monly seen as an unused and wasted resource,
one that will reach its full potential only if it is de-
veloped and put to a "productive" use. This atti-
tude is often accompanied by strong opposition to
open space preservation and clustering efforts.
But, as communities become increasingly devel-
oped, as traffic grows heavier, and as open lands
steadily dwindle away, the intrinsic values of such
natural areas become more apparent to larger
numbers of people.
This chapter cites a growing body of evidence that
open space preservation and concurrent resource
conservation are both economically and socially
beneficial for many communities. For example,
studies have shown that clustered developments
with significant open space preservation areas tend
to increase local property values.
Among the most common issues involving the
value of open space are:
• requirements for clustering development and
retaining a significant percentage of open space;
• requirements for public parkland setasides
within PUDs and subdivision developments;
• municipal budgets for the acquisition of
parkland and natural areas; and
• the acquisition, development, and protection
of greenways through a community.
SPRAWLING DEVELOPMENT
Across the country, when people are asked where
they would prefer to live, work, shop, and recre-
ate, they invariably select communities or neigh-
borhoods that have an abundance of trees, open
spaces, and uncluttered pedestrian ways. These
preferences translate into clear economic terms: if
a community is to succeed in attracting new resi-
dents and businesses, it must be concerned about
its appearance, physical character, livability, and
"feel."
Residents should be concerned not only about
the number, type, and density of new subdivi-
sions, but also about the effects those developments
will produce on their townscape, the surrounding
rural landscape, and their local "sense of place."
Although new subdivisions can be designed to pre-
serve a variety of open spaces, these advantages
are generally not realized, and communities typi-
cally receive very conventional "cookie- cutter" lay-
outs of just more houselots and more streets. After
several decades of metho 'caliewing and
approving scores o such subdivisions, communi-
ties area le to see the negative effects and higher
costs of s raw development and the con-
comitant loss o o en space. These costs may be
grouped into two types, those felt by the commu-
nity a-s a whole, and those accruing to the local gov-
ernment (often termed "fiscal impacts ").
280
THE COSTS OF
ENVIRONMENTAL DEGRADATION
The economic impacts of development, both pos-
itive and negative, extend much farther than is
commonly appreciated. For many years research-
ers have been concerned about the land, air, and
water pollution effects of low - density develop-
ment. Our present land- consumptive system of
development increases air and water pollution
with both ecological and economic consequences.
While it is difficult to quantify the total economic
impact of the loss of open lands (because the
effects form an interconnected network affecting
industries as diverse as farming, fishing, and
tourism), those losses can be substantial.
Land Consumption
Very few communities have escaped the effects
of strip development and large -lot subdivisions.
It sometimes seems to occur overnight: where
there was a farm field yesterday, today stands a
Burger King, a 7- Eleven, or a Wal -Mart. The pace
has been sometimes fast and sometimes slow, but
relentless, to the point where it is often accepted
as inevitable.
Large -lot residential zoning, often enacted by
communities that would like to preserve open
space such as woo an and farmland, is to a large
Fart—responsible for the hi h levels of land con -
sump ion experience by those communities. In
Maryland, where half of the new construction oc-
curs on agricultural parcels, 73,700 acres of farm-
land were converted to developed uses between
1985 and 1990 (Greer, 1991). A similar acreage of
woodland was also taken for suburban expansion.
By the year 2020, it is estimated that an additional
700,000 acres of open land in the state will be
covered with development. What this means for
local woodland wildlife habitats and for the lo-
cal farming economy are that both are seriously
threatened. In many suburbanizing areas agricul-
ture has ceased to be viable because large, con-
tiguous tracts of farmland are no longer available,
and support services have become nonexistent
(these issues are discussed in greater detail in
Chapter 18).
The Economics of Preserving Open Space 281
Water Pollution
Conversion of land to development affects local
water supplies through the pollution of rivers,
streams, bays, and groundwater. As land is devel-
oped, the area of impervious surface increases,
thereby reducing the volume of water infiltrating
into the soil. Consequently, more water flows off -
site and into rivers and streams. This runoff, com-
monly called non -point source pollution, carries
with it sediment and such pollutants as fertilizers,
pesticides, and motor oil.
Apart from the substances normally recognized
as pollutants, soil erosion can cause serious water
quality degradation. One study by the Maryland
Department of Natural Resources in the Gunpow-
der Falls Basin, a watershed of the Chesapeake
Bay, shows that forestland produces about 50 tons
of sediment per square mile per year. In contrast,
land stripped for construction contributes 25,000
to 50,000 tons per year. This sediment enters the
tributaries of the Chesapeake carrying nutrients
and pollutants that are slowly killing the bay
(Ebenreck, 1988).
How is this pollution likely to affect the econ-
omy? The Chesapeake Bay is an excellent example
of the network of economic impacts related to
open space preservation. The Office of Research
within the Maryland Department of Economic and
Employment Development estimated the value of
Chesapeake Bay to the economies of Maryland
and Virginia at $678 billion (in 1989 dollars). Of
this amount, $31.6 billion is generated annually
from commercial fisheries, activities for the ports,
ship and boat building, ship repair, and tourism
specific to the bay. Water pollution is seriously
harming the commercial fisheries upon which the
regional economy depends, for both the fishing
and tourism industries. The report states that:
Should water quality decline, marine vegetation
continue to die, wetlands be destroyed, and water-
fowl and animal habitats vanish, then that portion
of total land values around the Bay will decline as
well.
Likewise, some — though not all —major water -
related commercial economic activities are threat-
ened by further deterioration of the Chesapeake
282 Rural by Design: Maintaining Small Town Character
Bay.... Tourism —which includes recreational fish-
ing, boating, waterfowl hunting, as well as sight-
seeing —will also be adversely affected.
If we permit what can be generally described as the
"quality factor" to decline, we can expect the real
economic value of the Chesapeake Bay to decline as
well. Conversely, if we improve the quality of the
Chesapeake Bay, we can expect that its economic
value will rise.
Air pollution reduces property values. Two
studies from Chicago indicate that high levels of
particulate contamination depress real - estate val-
ues (Diamond, 1980; Smith, 1978). By looking at
the premiums paid for homes in various locations,
it was found that a reduction in air pollution par-
ticulates of 10 ug /m3 was worth $3,000, and a pre-
mium of $5,000 was paid for properties in the
areas of lowest air pollution.
Air Pollution FISCAL IMPACT ANALYSIS,
The provision of greenways and greenbelts in com- OR HOW MUCH DOES SPRAWL
munities function in two ways to reduce air pol- COST THE TAXPAYER?
lution. Trees and other vegetation in greenspaces
possess a large capacity for removing CO2, partic-
ulates and other pollutants from the air. In addi-
tion, when nearby development is clustered (as a
means of creating the greenspace), and when it is
designed in a mixed -use manner, the resulting
compact development form provides the base for
a concentration of services, thereby reducing the
• number of vehicle trips per day.
Sprawling development negatively impacts air
quality because it forces residents to drive to jobs,
schools, and services. Because many existing zon-
ing codes separate residential, commercial, and
industrial uses, it is no longer possible to walk to
a corner store in most new neighborhoods. Thus,
we have become totally dependent upon the pri-
vate automobile as our primary mode of transpor-
tation, even for our simplest everyday needs.
Studies have shown that each suburban house-
hold generates, on average, between 10 and 12
vehicle trips per day (Loudoun County Planning,
1990). Such numerous trips add substantially to
air pollution, particularly in areas already experi-
encing air quality problems. Under the federal
Clean Air Act, states are required to meet federally
mandated air quality standards. While significant
reductions in air pollution have been achieved, it
is clear that many areas of the United States (Cali-
fornia, for example) will be unable to meet air
quality standards without curtailing the presently
unrestricted use of cars in some metropolitan
areas (Air Review, 1986).
r �
L..J
Apart from the effects of parkland and green -
spaces on the value of surrounding property, a
community can determine the effect of open space
on the municipal coffers. This is done through a
process called "fiscal impact analysis," which is
a method of determining the costs of providing
public services to a municipality. The public costs
associated with development fall under five cat-
egories (The Nature Conservancy, The Hidden
Costs of Development):
• educating children;
• constructing and maintainin ublic facili-
ties, such as water and sewage acilities, solid
waste disposal, and parks;
• providing public services, such as fire and
.police protection, and health and welfare services;
• constru cting and maintaining roads and
Earking facilities; and
• administering ocal government. .
A number of studies have been undertaken to
determine the effects of various types of develop-
ment upon a municipality's cost outlays. These
studies have shown that the net public costs re-
sulting om low - density or "sprawl" develop -
n, ent are considerably greater than those resulting
from higher density or "cluster" development for
the same number of dwelling units. Put simply, it
costs more to run school buses and emergency ve-
ic es, to repair roads, and to collect garbage when
homes are spread out over more miles of roads
than when Vouses are located more closely to-
ret er, as in a typical nineteenth - century town.
23
1
In a study of the fiscal impacts of major land
uses in Culpeper County, Virginia, it was found
that "for every dollar of revenue collected from
residential land, $1.25 is spent on county services;
or every do lar collected from industrial /com-
mercial land, 19 cents is spent on services; simi-
larly, for every dollar collected from farm /forest/
open space, 19 cents is spent services." Farm/
torest /open space generates revenues of $1.9 mil-
lion and expenditures of $350,000. Even with the
deferral for current -use taxation, farm /forest/
open space land provides a net tax benefit to the
county (Vance and Larson, 1988).
In a study of development in DuPage County,
Illinois, it was found that new growth, both resi-
dential and nonresidential, resulted in higher taxes.
While most citizens and planners feel that nonres-
idential development will improve the tax base,
when looking at the long -term and regional im-
pacts, nonresidential development had more than
three times the impact on raising taxes of residen-
tial development. The study showed that commer-
cial and industrial development placed burdens
on public infrastructure and services that were not
being paid for by the increased value of the land
(Bergman, 1991).
In its study of Loudoun County, Virginia, the
American Farmland Trust (1986) found that net
public costs were approximately three times higher
($2,200 per dwelling) where the ensity was one
unit per five acres, than where the density was
4.5 units per acre ($700 per dwelling). The report
states:
Relatively low- density residential development
(one to five or more acres per dwelling unit) gen-
erates higher net public costs primarily because it
requires inefficient expenditures for public school
operating, instructional, and transportation ser-
vices, and also because it creates potentially higher
public liabilities for road maintenance and future
provision of public water and sewer services.
Low- density residential subdivisions, usually
located in rural areas, remove relatively large
amounts of land from agricultural uses while re-
quiring public services (education, health and wel-
fare, public safety, etc.), which are similar on a per
The Economics of Preserving Open Space 283
dwelling or per capita basis to those required by
high density subdivisions that convert far less land
from existing agricultural or other economic uses.
The Costs of Sprawl, a study commissioned by
the Council on Environmental Quality in the De-
partment of Housing and Urban Development
and the Environmental Protection Agency, found
that "better planning and higher density result in
lower economic, environmental, natural resource.
and, to some extent, personal and social costs for
a given number of welling units. Increased den-
sity is less expensive in terms of total costs and
even more so in terms of that portion of total costs
typically borne by the government" (Real Estate
Research Corporation, 1974).
A recent review and evaluation of the literature
conducted by the Urban Land Institute concluded
that "development spread out at low densities in-
creases the costs of NbRic facilities" (Frank, 1989).
The book loos at the range -of-costs induced by
sprawling development and suggests that houses
built in such sprawl may cost from 40 to 400 per-
cent more to service than comparable homes in
more compactly designed subdivisions.
THE VALUE OF OPEN SPACE
Open space preservation produces multiple eco-
nomic benefits: those to the community as a whole,
those to individual landowners, and those to de-
velopers. In terms of community benefits, open
space preservation can produce far - reaching ef-
fects on the local economy in its effect on the local
"quality of life." According to an annual survey of
chief executive officers conducted by Cushman
and Wakefield in 1989 (NPS, 1990), quality of life
for employees was the third most important fac-
tor in locating a business. According to a 1988 re-
port of the Governors' Committee on the Environ-
ment (NPS, 1990), the governors of five New
England states officially recognized open space as
a key element in the quality of life that brought
rapid economic growth and a multi - billion dollar
tourism industry to the region.
Through these studies we can see that "quality
of life" has a tangible, economic value that can be
EXECUTIVE SUMMARY M A-.f L Ct `i Z_
In 1991, the State Legislature changed the tax laws which froze the City levy limits and decreased
future property tax revenue. Lakeville needed to take action. On July 15, 1991, Lakeville's City
Council passed an interim ordinance which temporarily prohibits approval of new residential plats
and expansion or development of mobile (manufactured) home parks. This ordinance essentially
provides the City with a time -out to develop a means of managing growth in a fiscally responsible
manner. This fiscal impact study is the first action directed by the Council under the interim
ordinance. The results of this study will be used as a base to develop impact fees.
Fiscal impact analysis compares revenues and expenditures of various types of development to
arrive at an overall net impact. There was little factual data on what residential developments
actually contribute and cost the City's finances. In order to provide better fiscal impact data, a
number of sites were selected to represent various housing types and market values. The revenues
generated from property tax and intergovernmental aid are compared against expenditures on a per -
erson, per -acre or per -unit basis, in order to arrive at a net fiscal impact. Additionally, we
conducted a focus group with department heads to provide context and a broader perspective.
Also, we analyzed current service standards and new tax laws in order to provide an information
base for the next phase of the growth study.
As probably expected, lower value homes tended to have a negative fiscal impact. The high value
• homes had positive fiscal impacts. Senior housing, when not constructed with tax increment
financing, produces a net positive fiscal impact. In general, the higher the density of housing the
more the return, however, there are diminishing returns after a certain point in market value and
density. Twinhomes, quads, townhomes and high value homes provide the best fiscal investment in
housing.
The scattered development puts an enormous strain on the City's operating and capital budgets and
negatively impacts commercial areas trying to establish service areas. The 3600 ots that are in line
for development will act to randomly fill in the northern part of the City. Future planning should
be done in contiguous patterns.
Increasingly, City efforts will need to focus on redevelopment as the City ages. Mobile homes and
areas with aged housing stock, in particular, are major concerns of the Council and City staff. This
study finds that these areas have a significant negative fiscal impact. Remedies include focusing on
crime prevention and property maintenance.
Overall, the moratorium and subsequent growth studies emphasize prudent City management. The
City needs to be involved with other municipalities, counties and school districts in order to
coordinate growth in an environment of constrained resources. A Dakota County effort to conduct
similar studies is highly encouraged, because many cities would benefit.
Residential - Agricultural Area
This agricultural area is located southeast of Dodd Road. It is primarily in agricultural production with a small
scattering of single family homes.
Zoning:
R -A
Average Property Taxes: $1,227
School District:
Lakeville
Avg. # Children per Unit: 1.33
Avg. Market Value:
573,108
Avg. # People per Unit: 3.61
Average Unit Age:
30 Years
ANALYSIS:
Residential - agricultural areas do not fiscally stress the City. The net fiscal impact of the sample area is minimally
negative on a total and per acre basis. Police services are minimal. Sewer and water is not provided by the City and
other service demands are limited, e.g., snow removal, police, fire, school, etc.
RESIDENTIAL - AGRICULTURAL AREA
Annual operating School
Figures District
Expenditures
Revenues
..
Overall Net
Per Acre Impact
1. �tite'.' -;`�1" -
FINDINGS:
This preservation of agriculture is fiscally sound for the City and school district. Very little operational costs are
incurred for maintaining productive agricultural land. The benefits of open space far outweigh the operational
costs.
Note: As of 1989 this area has a mixture of land classified as Green Acres and non -Green Acres under the
Minnesota Agricultural Property Tax Law.
•
17
Lake Villa Estates
This new housing represents upper- income single family housing which is built in one of the most attractive areas of
•the City and close to a man -made amenity, the golf course. These are executive homes of higher quality
construction and well blended into the landscape on larger lots.
Zoning: R -1
School District: Lakeville
Avg. Market Value: $189,047
Average Unit Age: 3 Years
ANALYSIS:
Average Property Taxes:
Avg. # Children per Unit:
Avg. # People per Unit:
$4,228
1.33
3.61
Lake Villa Estates turns an overall positive fiscal impact for the City. Police services are very minimal. It is mainly
serviced by the I -35 and Hwy. 50 business area and the Burnsville Center area. The higher value of these homes
compensates for the lower density.
FINDINGS:
This type of development consumes land area, but does not burden city finances. If possible, the City should make
efforts to encourage developers to replicate the quality of landscaping.
•
18
Woodridge Estates
This area represents upper- income single - family housing, which is in a heavily wooded and hilly area with no man-
•made amenities. It is located near the commercial area of I -35 and Hwy 50. These are executive homes of higher
quality construction and well blended into the landscape on larger lots.
Zoning: R -2 Average Property Taxes: $4,357
School District: Lakeville Avg. # Children per Unit: - 1.33
Avg. Market Value: S195,889 Avg. # People per Unit: 3.61
Average Unit Age: 5 Years
ANALYSIS:
Woodridge Estates turns an overall positive fiscal impact for the City. Police services are relatively high, primarily
alarms. It is mainly serviced by the I -35 and Hwy. 50 business area and the Burnsville Center area. The higher
value of these homes compensates for the lower density.
WOODRIDGE ESTATES
FINDINGS:
This type of development consumes land area, but does not burden city finances, excepting police. Police calls for
this area are primarilly for burglar alarms.
L�
19
School
Annual Operating
City
Figures
P$317,085 istrict
Expenditures
$44,497
g
Revenues
72,052
360,387
Net Impact
27,554
43,302
Overall
Net
70,856
Per Acre Impact
475 747
Overall Net per
1,222
-
_ .h .z
Acre
FINDINGS:
This type of development consumes land area, but does not burden city finances, excepting police. Police calls for
this area are primarilly for burglar alarms.
L�
19
Donnay's Valley Park Addition
Donnay's Valley Park Addition was built as a starter home area for moderate income residents. The houses are
Wh7ch arily single story ramblers. The initial quality of the homes is somewhat better than the slab -on -grade housing
was typical of housing construction in other communities during the 1960's and 1970's. It is rimaril
P Y a
middle -class neighborhood with relatively little non - homesteaded property.
Zoning:
R -2
School District:
Rosemount
Avg. Market Value:
573,424
Average Unit Age:
20 years
ANALYSIS:
Average Property Taxes:
Avg. # Children per Unit:
Avg. # People per Unit:
5806
1.33
3.61
Donnay's turns an overall negative fiscal impact for the City. Standard street and fire service is provided to this
area. Police service is primarily for crimes against people, such as assaults or domestic calls. It is mainly serviced
by the Apple Valley commercial area on Cedar avenue. Donnay's represents what current single - family housing
may look like in twenty years.
FINDINGS:
Lack of upkeep appears to be a critical factor in the somewhat lower value of these homes. Their affordability is
obtained through accelerated devaluation of the property. The City would do well, from a fiscal standpoint, to
make efforts to ensure property maintenance of these areas to protect its tax base and minimize police services.
Special Notes: Rosemount School District No. 196 has somewhat lower levies (1990 taxes, payable 1991) than the
other districts which would make other areas similar to Donnay's have an even greater negative impact.
•
20
Dodd Pointe
Dodd Pointe is single family development. The housing is fairly well constructed and is primarily two story,
Ohomesteaded property. The general condition of the housing could be described as being fairly solid but lacking in
andscaping and general maintenance.
Zoning: R -3
School District: Rosemount
Avg. Market Value: S87,778
Average Unit Age: 4 -5 Years
ANALYSIS:
Average-Property Taxes:
Avg. # Children per Unit:
Avg. # People per Unit:
$1,032
1.33
3.61
Dodd Pointe has an overall negative fiscal impact for the City. Standard street and fire service is provided to this
area. It is mainly serviced by the Apple Valley commercial area on Cedar Avenue. It represents 'a moderate income
housing development which may, in a relatively short period of time, become what Donnay's is today.
FINDINGS:
Property maintenance should be emphasized for this area. Additionally, this type of development can be an asset to
the City, but it should be carefully watched.
Special Notes: Rosemount School District No. 196 has somewhat lower levies than the other districts which would
make other areas similar to Dodd Pointe have an even greater negative impact.
is
21
Oak Shores 3rd Addition
This area has primarily owner - occupied twinhomes. The houses are well constructed and designed to blend into the
• landscape. The general condition of the housing could be described as very well maintained and attractive.
Zoning:
R -4 Average Property Taxes: $1,389
School District:
Lakeville Avg. ## Children per Unit: .74
Avg. Market Value:
556,371 Avg. ## People per Unit: 2.38
Average Unit Age:
12 Years
ANALYSIS:
Oak Shores 3rd Addition positively impacts the City finances. Standard street and fire service is provided to this
area. It is mainly serviced by the Apple Valley commercial area on Cedar Avenue. It represents a quality
twinhomes housing development which will likely retain its value for some time to come.
OAK SHORES 3RD ADDITION
Overall Net per (496)
Acre
FINDINGS:
This type of development conserves on land area and is of enduring quality. Although a negative fiscal impact, it is
relatively small in comparison to the other areas. If possible, the City should make efforts to encourage developers
to replicate the more positive aspects of this neighborhood.
•
1I
�s
Annual Operating
City
School
Figures
District
x1
Expenditures
$9,235
$55,541
.y ¢
r
Revenues
9,964
53,027
Net Impact
729
(2,514)
Overall Net
(1, 785)
Per Acre Impact
202
(698)
Overall Net per (496)
Acre
FINDINGS:
This type of development conserves on land area and is of enduring quality. Although a negative fiscal impact, it is
relatively small in comparison to the other areas. If possible, the City should make efforts to encourage developers
to replicate the more positive aspects of this neighborhood.
•
1I
Oak Shores 7th Addition
This area has quadra -plex housing built in the mid 1980's. The units are of moderate construction quality. The
,general condition of the housing could be described as fairly well maintained with sparse landscaping. Primarily
young families live in this type of housing.
Zoning: R -5 Average Property Taxes: $1,371
School District: Lakeville Avg. # Children per Unit: .63
Avg. Market Value: S38,167 Avg. # People per Unit: 2.33
Average Unit Age: 7 Years
ANALYSIS:
Oak Shores 7th Addition turns an overall positive fiscal impact for the City. It is mainly serviced by the Apple
Valley commercial area on Cedar Avenue. It represents a moderate quality four -plex housing development which
shows a good mix between density and market value. Also, this type of development offers affordable housing
which is not deteriorated nor overly dense.
OAK SHORES 7TH ADDITION
�;` , "•'
Annual Operating
City
School
Figures
District
Expenditures
$12,764
$66,755
Revenues
13,822
66,321
"
Net Impact
1,057 (434)
Overall Net
624
Per Acre Impact
352
(145)
Overall Net per
208
w�M
Acre
FINDINGS:
This type of development conserves on land area and provides affordable housing without major compromises on
space or safety. If possible, the City should make efforts to encourage developers to replicate the more positive
aspects of this neighborhood.
•
23
South Fork Apartments
This area has newly constructed apartment buildings through a tax increment financing project. It is located near
•the commercial area of I -35 and Hwy. 50 and provides a critical customer base for that commercial area. These are
nicely landscaped and maintained buildings. There are a large number of families living here while waiting or their
homes to be built. g
Zoning:
R-7
Average Property Taxes: $1,109
School District:
Lakeville
Avg. # Children per Unit: .62
Avg. Market Value:
527,916
Avg. # People per Unit: 2.33
Average Unit Age:
4 Years
ANALYSIS:
South Fork Apartments Addition turns an overall negative fiscal impact for the City and the school district. It is
mainly serviced by the I -35 and Hwy. 50 business area and the Burnsville Center area. When the tax increment
financing is not calculated into the revenues, this addition has a significantly smaller negative impact (almost none)
to the City. However, there is an overall negative impact to the school district. This TIF is approximately 20 years
in duration.
SOUTH FORK APARTMENTS (All Phases)
* Reference Appendix C for fiscal impact without TIF
FINDINGS:
Despite high concentration, the tax increment financing burdens City finances. The City should keep in mind,
however, that this area has contributed significantly to the success of the commercial area at Interstate 35 and
Highway 50. The losses in South Fork should be compared to the positive fiscal impact of the commercial
development. These areas fiscally balance each other. Tax increment financing generally should only be used for
construction of municipal infrastructure, such as roads, senior centers, etc. Overall site quality is exemplary.
is
24
Annual Operating
City
School
"
Figures
District
Expenditures
$144,663
$742,144
Revenues
112,698
613,931
Net Impact
(31, 965)
(128, 213)
Overall Net
(160,178)
op
Per Acre Impact
(924)
(3,706)
Overall Net per
(4,629)
Acre
* Reference Appendix C for fiscal impact without TIF
FINDINGS:
Despite high concentration, the tax increment financing burdens City finances. The City should keep in mind,
however, that this area has contributed significantly to the success of the commercial area at Interstate 35 and
Highway 50. The losses in South Fork should be compared to the positive fiscal impact of the commercial
development. These areas fiscally balance each other. Tax increment financing generally should only be used for
construction of municipal infrastructure, such as roads, senior centers, etc. Overall site quality is exemplary.
is
24
Lamplighter Apartments
This apartment complex located in downtown Lakeville has well maintained buildings and open areas. These units
•represent a high density rental development which is primarily serviced by the downtown commercial businesses.
Zoning: R -7 Average Property Taxes: $971
School District: Lakeville Avg. ## Children per Unit: .62
Avg. Market Value: S27,227 Avg. ## People per Unit: 2.33
Average Unit Age: 14 Years
ANALYSIS:
Lamplighter Apartments sustain an overall negative fiscal impact for the City and the school district. This type of
development fiscally stresses the operating budget of the City and school district by sheer numbers of residents.
However, this population mass is beneficial to the downtown commercial area and industries in Air Lake Industrial
Park. Providing snow removal and infrastructure is minimal on a per capita and per acre basis due to the high
concentration of the population. However, operational costs of police, schools and other services required by the
residents are a proportion of unit density.
LAMPLIGHTER APARTMENTS
FINDINGS:
This density has a negative fiscal impact. The City should keep in mind, however, that this area may contribute to
the success of future downtown commercial development and provide housing for lower income industrial and
service- sector workers of Lakeville. The City should make efforts to encourage developers to concentrate on lower
density rental development.
25
Fairfield Terrace Senior Apartments
Fairfield Terrace, a high density senior rental development, was built with tax increment financing. It is located in
downtown Lakeville, adjacent to the central business district. The buildings and open areas are well designed and
carefully maintained.
Zoning:
R -7
Average Property Taxes: S64
School District:
Lakeville
Avg. # Children per Unit: 0.0
Avg. Market Valuer
527,450
Avg. # People per Unit: 1.04
Average Unit Age:
6 Years
ANALYSIS:
Fairfield Terrace Senior Apartments have a negative fiscal impact for the City. However, without tax increment
financing, these apartments would have a positive fiscal impact. For schools, Fairfield Terrace turns a positive
fiscal impact, regardless of TIF. Police services are primarily medical. Downtown businesses serve the senior
residents. Only the land was included in the TIF, which expires in 20 years. Future senior developments could
utilize the in -place senior center. Operational costs of police and other services are lower than other high density
apartments because the number of residents per unit is significantly lower in senior housing.
xcicrcnce Appenaut c, for nsmi impact without TIF
This type of development has the potential to be fiscally positive for the City and school district when not financed
with TIF. The City should keep in mind that this area may contribute to the success of future downtown
commercial development. The concentration of seniors may reduce the service area, thus reducing provision costs
to the City. Demand for senior rental housing far exceeds supply.3 There may be added demand from residents of
adjacent agricultural areas and the City of Lakeville as the population continues to age. The City should not only
make efforts to encourage senior rental development, but also encourage innovative designs and differing densities
to serve the diverse needs of seniors.
•
'Erickson, Robert. Meeting July 22, 1991
26
FAIRFIELD
TERRACE SENIOR HOUSING
r
Annual Operating
City
School
AW,
Figures
District
Expenditures
$5,707
$0
Revenues
3,571
878
Net Impact
(2,125)
878
Overall Net
(1,257)
Per Acre Impact
(2,925)
1,203
Overall Net per
(1,722)
Wi
•. :!
Acre
FINDINGS:
xcicrcnce Appenaut c, for nsmi impact without TIF
This type of development has the potential to be fiscally positive for the City and school district when not financed
with TIF. The City should keep in mind that this area may contribute to the success of future downtown
commercial development. The concentration of seniors may reduce the service area, thus reducing provision costs
to the City. Demand for senior rental housing far exceeds supply.3 There may be added demand from residents of
adjacent agricultural areas and the City of Lakeville as the population continues to age. The City should not only
make efforts to encourage senior rental development, but also encourage innovative designs and differing densities
to serve the diverse needs of seniors.
•
'Erickson, Robert. Meeting July 22, 1991
26
Country View Mobile Home Park
Country View is a typical mobile home park for the City of Lakeville. It provides low cost, owner - occupied
housing for lower income residents. The homes vary in value from $3,000 to 525,000. The homes are primarily
owner occupied.
Zoning:
R -M
School District:
Farmington
Avg. Market Value:
521,772
Average Unit Age:
Variable
ANALYSIS:
Average Property Taxes:
Avg. # Children per Unit:
Avg. # People per Unit:
5469*
1.07
2.83
Country View turns an overall negative fiscal impact for the City. Police service is primarily for crimes against
people, such as assaults or domestic calls. It is mainly serviced by the Apple Valley commercial area on Cedar
Avenue. It represents a typical mobile home park for the City. Though it may be in better condition than other
parks in the area, it does represent what future parks would look like.
FINDINGS:
Safety is a major issue in these areas. The mobile homes provide housing affordability through lower quality
construction and smaller lot sizes. The City would do well, from a fiscal standpoint, to make efforts to minimi�r
police services through crime prevention programs possibly financed by the mobile home park owner.
Special Notes: Mobile home parks are responsible for the construction and maintenance of their own roads.
C,
27
Commercial and Industrial Areas
The commercial area is located on I -35 and Highway 50. The industrial properties are in the Air Lake Industrial
WPark located southeast of the City. Both areas are near full development and in somewhat stable financial
ituations.
Zoning: B-4 and I -2
School District: Lakeville
Industrial Market Value/Acre: $178,010
Commercial Market Value/Acre: $330,233
ANALYSIS:
Commercial and industrial development provides solid positive net fiscal impacts. Standard street and fire service is
provided to this area. Police services are very minimal. This particular commercial area represents current
suburban development. The commercial area includes Mills Fleet Farm, which is a'tax increment financed project.
Industrial properties mainly contain light industry.
FINDINGS:
IINDUSTRIAL
COMMERCIAL
rating
City School
District
City School
District
es
rNetImpact
$120,819 NA
$88,583 NA
188,926 547,972
136,258 395,209
68,108 597,972
47,675 395,209
Over all Net
616,080
442,884
Per Acre Impact
626
5,037
11109
91191
Overall Net per Acre
5,663
10,300
Commercial and industrial developments are primary sources of revenue for the City and school districts. Excess
revenues from commercial and industrial developments balance the costs of lower value residential developments.
Residents provide labor and customers. The City should promote a proper mix of commercial/industrial with
affordable residential development.
•
28
Banks: Downtown and 135
One bank is in downtown Lakeville, the other is located at I -35 and Hwy. 50.
•
Zoning: B -4
School District: Lakeville
Downtown Market Value: 5725,000
I -35 Market Value: $350,000
ANALYSIS:
At the request of the Economic Development Commission, the downtown bank and the I -35 Bank are compared.
They wanted to know how two fundamentally different commercial areas compare. The net fiscal impact of these
sample areas is positive on a total and per acre basis. Police services are primarily for money escort and costs are
nominally recovered through fees.
r:
FINDINGS:
:DOWWNTOWN
I35
Operatin1,284
School
District
City
School
District
tures 3
rNetImpact
NA
$2,088
NA
s
20,240
3,082
8,939
20,240
994
8,939
Net ,695
9,933
e Impact
26,116
1,247
11,216
Overall Net per
12,463
The downtown bank has twice the positive returns because its building value is considerably higher. Downtown
development should be encouraged; as the desirability of the property increases, so will the market value and tax
base. Also, residential developments should be encouraged which are serviced by Lakeville commercial properties
in order to balance the costs of maintaining residential development.
•
29
pmNwM=M=
1 0
•
7 1 ari
-gym
number of lots 148
road length 10.850 lin. ft.
lot area 20.000 sq. ft. min.
open space 30.3 acres
FIGURE 7. A COMPARISON OF CONVENTIONAL (A) AND
CLUSTER (B) SUBDIVISIONS
l/
0
vpcn aF— /n
3.6 acres ,
open space
4.4 acres
_ Y
C
•
•
•
•
Reprinted by permission
of Land Development.
Copyright NAHB.
1201 15th Street, NW
Washington, D.C. 20005
With each passing year, we Ameri-
cans consume ever - increasing
quantities of land for each new
home, office, and store we build. In
southeastern Pennsylvania, for exam-
ple, the amount of land consumed for
development increased by 32 percent
between 1970 and 1990 while the pop-
ulation decreased by 3 percent. During
that same period, land consumption in
metropolitan Chicago increased by 46
percent while the population increased
by just 4 percent. The greater Seattle
area gained 36 percent more residents
but used up 87 percent more land to
accommodate them.
"If American policy makers had de-
liberately set out to construct the most
wasteful, inefficient and land -con-
sumptive pattern of development pos-
sible, they could have hardly been
more success ul " write
_sRAnUll
Arendt in Rural by Design, a treatise on
building real communities rather than
sprawl. As former planning director of
the Center for Rural Massachusetts and
now at the Natural Lands Trust in
Pennsylvania, Arendt has spent years
lecturing on techniques to accommo-
date development in rural areas with-
out destroying the areas' character.
Arendt has now put his ideas in book
form to aid local planners —both lay
and professional —in maintaining the
special identity of their communities.
Arendt emphasizes that sprawl is
the direct result of conventional plan-
. But if
standards and enforce those
BOOK REVIEW
Coster the kind of development they
want. For example, even something as
seemingly unalterable as the design of a
McDonald's restaurant can be changed
if the municipality stands firm.
Freeport, Maine, insisted that the local
McDonald's retain a farmhouse for its
proposed restaurant and display only a
modest sign. As Arendt's photographs
demonstrate, the fast -food giant not
only complied with the town's wishes
but also demonstrated some unusual
creativity in the process.
Arendt strongly recommends that
municipalities conduct a build -out
analysis to show exactly how their com-
munity will look under current zoning
regulations. Residents are usually
amazed to fin tat, when fully imple-
mented, their local zoning wipes out the
scenic landscapes and open space they
cherish a— nd replaces such features with
waIF--to-wall sprawl. Only when the
public is confronted with the inevitable
results of conventional zoning can resi-
dents be persuaded to plan more astute-
ly for the future, Arendt suggests.
Americans need to start building
pedestrian- oriented towns again, the
author says, a tradition that was ar ely
aban oned after the 1920s. Arendt de-
e prmcip es that guided com-
munity design in the late 1800s and
early 1900s and notes that such archi-
tects as Andres Duany and Tony Ne-
lessen are reviving these principles.
"What people yearn for these days," he
writes, "is not another wave of `real es-
tate developments,' but rather the
chance to live in a real human settle-
ment with a sense o p ace and a sense
of belonging." In addition to describ-
ing t� he physical elements of a real
town, Arendt includes model village
design standards from counties in Vir-
ginia and Maryland. He argues that
municipalities should resurrect the
the layout of streets and location of
ublic sc paces_,
In a chapter on affordable housing,
Arendt notes that home prices have
_ buildin¢ lots are much larger than ever I
oerore. nunaing iess c2LL1UVdYa11c
homes on smaller lots can significantly
reduce housing costs, Arendt argues.
"Attractive but modestly scaled homes
built on relatively compact lots during
the 1920s and 1930s can be found in
every part of the country, providing
numerous examples of how pleasant
but affordable neighborhoods could be
created again," he writes. "The impor-
tance of requiring developers to ro-
vide sidewalks and to plant deciduous
street trees... cannot be overstated."
Numerous photographs and drawings
illustrate Arendt's points. The author
also discusses the use of accessory
dwellings as well as Vermont's unique
program that links affordable housing
with land conservation.
In rethinking how we might guide
growth, Arendt reaches back to the
ideas of early 20th century planner
Benton MacKaye, who foresaw the rise
of roadside strip development. Arendt
embraces MacKaye's proposal to re-
strict development along highways and
to center it in towns surrounded by
clearly defined open space. He notes
that MacKaye's approach, which the
Maine Planning Office unsuccessfully
floated as recently as 1987, could be
implemented through a transfer- of -de-
velopment rights scheme that would
free most highway frontage from de-
velopment and place it in carefully se-
lected nodes along the way.
Most developers will li re
with Arendt's contention that conven-
tial street widths. Widths of 18 to 20
See OOK REVIEW, page 34
Land Development/Winter 1995 27
•
L PA
•
•
BOOK REVIEW
Continued from page 27
feet make perfect sense for residential
areas with i e traffic, Arendt says, and
even enhance safety by encouraging
motorists to slow down.
For those determined to build iso-
lated developments in rural areas,
rendt provides a wide selection of
c ustering techniques that retain as
much open space as possible while pre-
serving scenic views. Colored drawings
with aerial views of alternative devel-
opment patterns illustrate how the
same amount of construction can vary
widely in its impact on the landscape.
Builders should find Arendt's chap-
ters on open space design, including
greenways and buffers, of particular in-
terest. By encouraging the clustering of
homes–through density bonuses, mu-
nicipalities can e open land
capes, ower t e cost ot building and
amtaimng subdivisions, an Lenriance
e value ot completed developments.
Arendt cites a growing o y of evi-
ence to note that housing clustered
around-common open space or green -
ways is cost -e ective to build and ap-
preciates more rapidly in value than
omes on conventional lots.
The book is nothing if not thor-
ough. It contains chapters on virtually
every kind of commercial and residen-
tial development —from in -fill con-
struction to subdivisions in the most
rural areas. Separate chapters offer case
studies of 40 outstanding residential
and commercial projects dating from
1914.to the present. The liberal use of
photographs, drawings, and maps sup -
ports the presentation.
Methods for preserving farmland,
scenic roads, and open space are de-
scribed at length. Separate chapters by
Dodson and Reid discuss creative ways
to cluster development to ensure the
preservation of rural areas. A down-
town redevelopment plan for Edgar -
town on Martha's Vineyard illustrates
ways to accommodate new develop-
ment without destrovinQ an historic
34 Land Development /Winter 1995
town's timeless character.
A chapter by Brabec makes the eco-
nomic case for preserving open space.
Citing numerous studies that date from
Frederick Law Olmsted in the 1850s to
the present, Brabec argues that open
space pays for itself in terms of reduced
demand for government services, in-
creased tourism, and an improved qual-
ity of life. Yaro, executive director of the
Regional Plan Association of New York,
devotes a brief chapter to regional plan-
ning initiatives, examining statewide ef-
forts such as Oregon's plan and site -
specific regulatory bodies such as the
Cape Cod Commission.
Rural by Design is far more read-
able than most tomes on planning,
and its credibility is underscored by
myriad references to specific efforts
across the country to conserve open
space. It is accompanied by a lengthy
bibliography. For people committed
to designing better communities than
we have seen in the last 50 years, Ru-
ral by Design is a valuable reference
work. IS
Thomas Hylton, a Pennsylvania
J ournalist, won a Pulitzer Prize for
editorials advocating the preservation of
farmland and open space in Chester
County, Pennsylvania.
Looking toward a rural future
sign expert discusses ways farms & subdivisions can coexist
development more attractive
toy000 sq Pr
and residential subdivi-
s
acre lots rather than sprawling two, three
For these kinds of develop-
Farrnlmd
sions need not be mutually
or four acre home sites. He said although
of an area, told the crowd of more than
exclusive. In fact, open fields,
some people associate this kind of
creeks and woodlots can add the kind of
"cluster h ous_in�g" with overcrowding and
monetary and cultural value to an area
lack^ o� pnouvacy, if done right these kinds
that large lawns never will, said the
of developments can offer a ' eher
keynote speaker at the Oct. 4 Landmark
Juality of life than traditional projects. He
Series lecture in St. Paul, Minn.
showed slides of housing developments
"I think there's something tremen-
that had tossed out designs based on the
dously wrong in our society when the
grid system of planning along straight
only thing we can get out of a subdivision
lines, and instead identified natural areas
is house lots and streets," Randall Arendt,
present and built around them, using
a nationally recognized expert on
trees, fields and streams as boundaries.
designing residential communities that
Ian one Pennsylvania county. a devel-
integrity of the area. Before progressive
oper took a 300 -acre farm and
only cleveioped lialt of it by
building quarter -acre lots. He
called the development "Farm
View" and the homes soon
outsold those on a neighboring
ZP
evelo�ment that was based
sprawling one -acre lots.
A Wisconsin ho—m--e—b-7rer
has declined to construct
homes on the banks of a river.
Those properties would have
sold for a great deal of money,
but once the river front
property was gone, only those
lucky early buyers would have
access to the waterway.
Instead, he built the homes
away from the river, leaving its
banks accessible to everyone.
In the end, that general
A sketch in Arendr's book, Connecticut River Design accessibility made the overall
Manual for Conservation and Development,
development more attractive
showing development that preserves open spaces. and valuable to home buyers,
said Arendt.
For these kinds of develop-
preserve the rural and ecological inte;n y
ments to become more common, several
of an area, told the crowd of more than
ngs must happen said a author of
300 people. The lecture was presented by
more an pu lications, including
the Land Stewardship Project's 1000
Rural by Design: Maintaining Small
Friends of Minnesota.
Town Character, ap;ii Designing Open
Arendt, who is vice president of
Space Subdivisio First of all, local
Conservation Programs for the Pennsyl-
units of government must set maximum
vania -based Natural Lands Trust, said
lot sizes so that developers are not
increasingly developers across the
tempted to fill space inefficiently. In a
country are recognizing that people move
metropolitan area, those lot sizes should
into an area for more than "lawns too
be one acre or less, in rural areas, aone-
large to mow and too small to p ow
home - per -40 -acre limit would be more
Homeowners like to be next to farm
desirable to maintain the farming
S, woodlands an o en areas, a said.
integrity of the area. Before progressive
o provide those areas, deve opers
zoning ordinances can be passed,
most bLuld the homes in more compact
however, communities must see what will
spaces, opting, for example, for quarter- happen if inefficient growth continues.
Arendt often does this by drawing up
maps for communities based on current
zoning laws and extrapolating into the
future. These "coming attractions" maps
help communities envision what will
happen to their open spaces if they
continue to allow sprawling development
to occur.
In addition, engineers, developers and
landscape architects must work together
as teams to create these developments.
Local governments, housing associations
and even private, nonprofit groups such
as land trusts must work together to
preserve and manage the open spaces and
farmlands in the vicinity of these devel-
opments.
"You need a combination of creative
and engineering skills," he said. "Engi-
neers can't expect to practice landscape
architecture."
Finally, communities must be identi-
fied that are willing to experiment with
these kinds of developments so that
models can be set up for others to look at
and learn from, said Arendt.
A model in the making
At a LSP's 1000 Friends of Minnesota
workshop following Arendt's talk,
participants talked about the need for a
model community in the Twin Cities area.
Local developer Robert Engstrom
presented information on a proposal he
has brought before city officials in Lake
Elmo, Minn., for just such a model
project.
If approved, the development would
involve building homes on half of a 226 -
acre farm and using conservation
easements to preserve the other half
permanently. Engstrom said he hopes to
encourage the establishment of natural
prairie and alternative farming enterprises
such as community supported agriculture
on the undeveloped part of the property.
"I think timing is everything," said
Engstrom. "There is a citizenry that wants
a diversity of housing and wants to
preserve the rural life - style." O
• . •
The Landmark Series is a public affairs fo-
rum presented by Minnesota Landmarks, in as-
sociation with the Saint Paul League of Women
Voters. For information on obtaining a VHS tape
of Arendt s talk, call (612) 292 -3285.
The Arendt program was supported by: St.
Paul Companies, Northwest Area Foundation,
Saint Paul Pioneer Press, US West, Citizens
League, Keystone Productions, Saint Paul Foun-
dation, Minneapolis Foundation and Emma B.
Howe Memorial Foundation.
The Land Stewardship Letter 7
C 3B
FRIDAY, DECEMBER 1, 1995
SUBURBS
Lake Elmo
says cluster
housing will
i
p reserve area
JIM BROEDE STAFF WRITER
A year ago, Ma IF YOU GO
rine on St. Croix Lake Elmo
sent developers a residents will get
message: Like it or to voice views on
not, cluster the clustering and
homes in yoyr new
subdivisions on half tanning
Issues
the land and keep Issues at a public
the remainder as meeting at 8:30:
permanent open a.m. Saturday at
space. . City Hall,.3800
It was the first Laverne Ave. N.
time a community
in Minnesota had ever imposed such a
requirement.
Now, Lake Elmo is expected to be- .
come , the second to make clustering the
rule.
"There seems to be a consensus on our
city council to head in the direction of
mandatory cluster housing," Lake Elmo
city administrator Mary Kueffner said.
But the details, such as the minimum
allowable size of a lot, must still be
worked out."
Officials in the city of 6,000 residents
want to determine once and for all if
cluster housing has widespread public
support.
"We think it does," Kueffner said, "be-
cause people keep telling us that they-
want Lake Elmo's rural character pre-
served, and cluster housing will help us
I! do that."
Lake Elmo residents will have an op-
portunity to voice views on clustering
and other planning issues at a public
•
SAINT PAUL PIONEER PRESS
meeting at 8:30 a.m. Saturday at City
Hall, 3800 Laverne Ave. N.
Washington County — where the cities
of Lake Elmo and Marine on St. Croix
are located — has promoted the cluster-
ing on an optional basis in the county's
nine, mostly rural townships.
But county planners say incentives are -
needed to make clustering more palat-
able to developers.
"I could see Lake Elmo offering incen-
tives," Kueffner said. "Now we allow for
six homes per 20 acres in.our residential
estates zone. But we might tell develop-
ers, `We'll allow eight or nine homes if
you cluster and set aside half of your.
land as permanent open` space. "
The open space might take several dif-
ferent forms.
"It could be put in a land trust," Kueff-
ner said. "But another option is to turn it
over to a homeowners association for a
shared -use purpose. For instance, owners ;
of the homes on the developed half might_ .
choose to pasture horses on the open:
space half, and even build a stable."
Kueffner also envisions imaginative_
developers - proposing clusters of varied
sized lots in a single development.
"We might have a mix, of lots of 3/4 -
acre to 5 acres tucked around a wetland
or other natural amenity," she said. "You
might call it a `way to listen to the
land.' "
City Council Member Rita Conlin says
she's committed to cluster housing.
"Now we have to find a way to make it
work," she said. "The major issue to re-
solve is one of density. How many homes
do we allow on the developed half of the
property'" .
Council Member Steve DeLapp wants
assurances that the open space will re-
main open forever.
"I want the development rights surren-
dered," he said, "and the property placed
in a land trust."
Mayor Wyn John added, "Clustering
makes sense. The big question is whether
we can make it work and persuade devel-
opers to get behind ' it."
Lake Elmo's planning commission rec-
ommended that the city impose a resi-
dential development moratorium of up to
six months while the city drafts new
rules pertaining to cluster housing.
Without a moratorium, commissioners
said, some developers may rush in and
try to get approval for new subdivisions.
under the old rules.
The city council is expected to vote on
the moratorium proposal at a meeting at
7 p.m. Tuesday at City Hall.
"We think it does
(have public -
support) because
people keep telling
us that they want
Lake Elmo's rural
character
preserved, and
cluster housing will
help us do that."
MARY KUEFFNER
CITY ADMINISTRATOR
� A,(
Ylk
Rio
INIME OJIMION
MEMORANDUM
ver TO: Mayor and City Council
FROM: Stephen Rohlf, Building and
Zoning Administrator
r"
DATE: December 6, 1995
SUBJECT: Conservation Partners Grant
Program to Study Lake Orono
City Staff has been working with the Lake Orono Improvement Association
for several months researching the problem of sedimentation into Lake Orono
and exploring the possibility of dredging the lake. Staff has facilitated
meetings for the Lake Orono Improvement Association that included
representatives from the Department of Natural Resources, US Army Corp of
Engineers, Soil and Water Conservation District, and Minnesota Pollution
Control Agency.
• The Lake Orono Improvement Association understands that their first step
has to be to identify and quantify the sedimentation problem into the lake.
To that end, city staff has cooperated with them in applying for a
Conservation Partners Grant through the Department of Natural Resources
to study sedimentation and other contaminants in the lake. This study
would augment studies being conducted on the Elk River watershed by the
Sherburne Soil and Water Conservation District in conjunction with the Elk
River Watershed Association Joint Powers Board.
Attached to this memo, is a copy of the grant application as proposed by city
staff and the Lake Orono Improvement Association. The details of the study
are contained in the grant application. The grant is a matching grant, so
local funds have to be raised. The last page of the grant application is a
breakdown of what agencies other than the DNR will be contributing to the
study.
Staff is proposing that the city's portion of the study be funded by the landfill
surcharge monies the city collects. We feel the proposed study would be a
legitimate expenditure for the landfill surcharge fund, according to State
statute. Staff plans to carry on with this grant application unless directed
• otherwise by the City Council.
c12 -6/b stever
13065 6rono Parkway • P.O. Box 490 • Elk River, MN 55330 • (612) 441 -7420 • Fax: (612) 441 -7425
C,
Research/Monitor Lake Orono Water Quality
ITEM 1- APPLICATION SUMMARY
Project
Title: Research/Monitor Lake Orono Water Quality
Location: County- Sherburne Section/Township /Range- 30- 33/33/26
Legislative District 19B
Total Cost: $ 24,000 Grant Requested: $ 10,000
Sponsoring Private Organization
Organization Name: Lake Orono Improvement Association
Contact Person: Patrick Plant
Title: President
• Address: 13184 Island View Drive
•
City: Elk River State: MN Zip: 55330
Telephone: (612)441 -6339
Minnesota Tax Identification Number: N/A
Federal Employer Identification Number: N/A
Cooperating Local Government (if any)
Government Name: City of Elk River
13065 Orono Pkwy
Elk River, MN 55330
Contact Person: Stephen Rohlf, Building and Zoning Administrator
Telephone: (612) 441 -4904
I1- 28sr/bz/stever
•
is
ITEM 2- PROJECT NARRATIVE
1.0 INTRODUCTION
Orono Lake (MDNR ID# 71 -13) is an approximately 300 acre lake located
within the City of Elk River. Orono Lake is an impoundment of the Elk River
and is located in the lower portion of the Elk River watershed. The Elk River
has a watershed of approximately 387,840 acres of drainage. Lake Orono's
immediate watershed is approximately 9,250 acres. The trophic status of
Orono Lake is eutrophic/hypereutrophic based on the limited number of data
points reported (MPCA, 1985).
Concern has been expressed by the City of Elk River and the Lake Orono
Improvement Association that runoff from the drainage area is resulting in
the lake being filled in at an unacceptable rate creating shallow areas which
have become a hazard to recreational use, degrades fish habitat, and adds to
nuisance levels of algae during the open water periods. A request to the
Minnesota Department of Natural Resources to remap Orono Lake to help
determine the rate of sedimentation will be made in the near future.
2.0 PROJECT TASKS
The goals of the proposed project are to ultimately dredge portions of Orono
Lake to enhance the publics use of the water body, to identify the critical
loading areas within the drainage area, and to identify methods to reduce
loading to acceptable levels. Therefore, the tasks included in the proposed
project are as follows:
TASK I. Watershed Review - A comprehensive review of existing
information on both Orono Lake and the Elk River drainage
area above the lake, will be conducted. In addition to the review
of the existing information, a review of suspected areas of
concern will be conducted. Information obtained in this task
will assist in identifying the critical areas which will require
monitoring.
11- 28sr/bz/stever
• TASK II. Monitoring Plan - A monitoring plan will be developed to
evaluate loading to Orono Lake. Monitoring will be conducted
'over a period of one year. Components of the monitoring plan
will include, but are not limited to, the following:
• Inflow /Outflow Water Quality Monitoring
• Inlet Bed Load Monitoring
• In -Lake Sedimentation Rate Monitoring
• Sediment Analysis
• Analysis of Other Contaminates
The plan for the inflow and outflow monitoring will include a
monthly grab sample at an estimated five stations. The first
monthly grab sample will be conducted just prior, during, and
just after peak flow during spring run -off 1997, the suspected
largest sedimentation loading period. In addition to the grab
sampling, six storm event samples will be collected through the
one year monitoring period. Parameters which will be included
in the inflow and outflow monitoring include nutrients and
suspended solids.
• Inlet bed load monitoring stations will be located at major
tributaries to Orono Lake. It is anticipated that a minimum of
four bed load monitoring stations will be established. In -lake
sediment rate monitoring stations will be established at five
locations within the lake. Both the sediment rate and bed load
monitoring stations will be inspected quarterly during the
monitoring period.
The sediment analysis will be conducted to determine disposal
options for the anticipated dredging of Orono Lake.
The resulting data from the monitoring plan will produce a
nutrient budget for Orono Lake and document the necessary
improvements to the drainage area so that the dredging of
Orono Lake will not have to be an on -going activity.
TASK III. Monitoring - Monitoring of the inflows, outflow, sediment
loading, and in -lake monitoring, will be conducted over a period
of one year as well as analysis of sediment.
TASK IV. Mapping and Calculating Past Sediment Rate - Contour lines
is will be digitized off the original lake map and new lake map
from the DNR so that the volume of sediment deposited since
11- 28sr/bz/stever
• the original map can be computed. Available United States
Department of the Interior Geological Survey, sediment
discharge data and typical erosion- sediment yield values will be
used to back calculate a sedimentation rate.
TASK V. Restoration Options - Once the monitoring data has been
reviewed, restoration options will be identified to improve the
quality of both the tributaries to Orono Lake and the lake itself.
The restoration options will include a combination of best
management practices (BMP's) and structural devices such as
inlet sediment traps and wet detention ponds to reduce the
loading of nutrients and sediments. Costs associated with the
restoration options will be provided. Additionally, costs
associated with the dredging and disposal of the spoils will be
identified.
TASK VI. Funding Assistance - Sources for funding of the selected
restoration options will be identified.
The proposed project is designed to augment investigations within the upper
watershed of the Elk River by the Sherburne Soil and Water Conservation
• District (SWCD). The proposed project and the activities of the SWCD will
identify drainage areas which may have excessive nutrient and sediment
loading. Additionally, the proposed project will identify potential projects
which will reduce the loading of nutrient and sediments to Orono Lake.
•
The Lake Orono Improvement Association has met with representatives of
the US Army Corp of Engineers, MPCA, DNR, Sherburne SWCD, Sherburne
County Board, and the City of Elk River, regarding the project on 10/10/95.
State Representative, Bruce Anderson, was in attendance. Another meeting
with this same group to develop an action plan and discuss the permitting
process for the total project is scheduled for 12/12/95.
11- 28sr/bz/stever
•
ITEM 3- COST BREAKDOWN
Completion Date Activity Description Cost
4/96 Watershed Review Literature and physical
review of watershed
characteristics $ 800
4/96 Monitoring Plan Develop monitoring plan $ 300
4/97 Water quality Conduct water quality
monitoring and sediment monitoring $16,500
9/97 Mapping and Digitize contour lines
calculating past of original and new lake
sedimentation map and use other existing
rate information to calculate past
sedimentation rate $ 4,000
is 7/97 Restoration Identification of projects
Options to improve water quality $ 1,800
9/97 Funding Options Identification of potential
funding sources for
restoration options $ 600
Total $24,000
•
11- 28sr/k/stever
•
•
ITEM 4- LOCAL MATCH
Donor Name Description Amount
SWCD Technical Support $ 1,500
City of Elk River Field Services/
Technical Support /Cash $ 5,500
Orono Lake Association Field Sampling Assistance $ 3,000
Sherburne County Technical Support /Cash $ 4,000
Total $14,000
11- 28sr/bz/stever
•
DECEMBER 7, 1995
WE DO NOT WANT AND WE DO NOT NEED CITY SEWER AND WATER SERVICES FOR
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