INFORMATION #3 08-18-1997City of
River
MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
Mayor & City Council
Joni Pearson, Secretary-Administration
August 18, 1997
Suburban Development
For your information, Councilmember Holmgren has requested that the
attached articles be included in the August 18, 1997, Council packet
distribution. These articles are from the August 12, 1997, edition of the Star
Tribune regarding suburban development and its effect on family farm life.
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425
Aerial photos provided by MA,c~HUF~
.. ;~. The 101-acre Krueger Tree Farm, about'three miles west of
the St. Croix River, was mostly surrounded by other farm
1991 fields in 1991, although grading had been done in the area
that would become a Target-Cub Foods shopping complex,
across Hwy. 36. The home of Al and Elaine Krueger and
their fields of trees were in the 64 acres along Hwy. 36. They and all of the pre-
vious owners had preserved the 37-acre woods in the southern portion of the
property.
Decreasing farm acres
Here, county by county, are the
number of farm acres that were
lost to suburban development
between 1990 and 1996 in 14
counties that generally are
recognized as being part of the
metro area.
Scott ~.
Hennepin ~
Anoka ~
Polk (Wis.) ~
St. Croix (Wis.) ~
Dakota ~
Washington ~
Carver ~
Sherburne ~
Isanti ~
Wright ~
Chisago · 3,838
Pierce (Wis.) I :L709
Ramsey I ::L558
Total: ......... ;. &S~,T&5 acres
Source: Minnesota and Wisconsin
Revenue Depadments.
partment expanded Hwy. 36 to a
four-lane divided highway. The
old road became the frontage
road, which was torn up this
summer to make room for anoth-
er expansion of Hwy. 36 and for
an expanded Hwy. 5.
The Kruegers knew their trees
were more expensive, but they
gave their customers service.
They wrapped the trees for
people and tied them to the tops
of their cars. They gave Tootsie
Rolls to the children and tree or-
naments to the parents -- small
wooden birds one year, glass rein-
deer another.
Nell remembers the hard work
of taking care of the trees during
the summer, "shearing" them with
machete-like knives as they grew
so they'd be the right shape at
Christmas. "It was so tedious,
dealing with the heat and the deer
flies," he said. "Christmas was the
high point."
Tree traditions
Christnms was \vhen
everybody came home
and the friends who had
grown up with the Krue-
gets came back for the
By '1996, the farm had been sold and sewer and water
1996 lines had been run through the property to the new
Stillwater Area High School (1), permitting the construction
of streets and 77 homesites in the 37-acre woods (2) and
to the Wal-Mart Store (3). The lines were also extended to the area where a
Menards store (4) is currently under construction and to where a Rainbow
Foods store and a strip mall complex (5) are being built. The Target-Cub Foods
complex (6) north of Hwy. 36 in Stillwater had been operating for two years.
Westward expansion by S. tillwater, Oak Park Heights
As the population has increased, Stillwater and Oak Park Heights have steadily
. moved their city limits westward through annexation.
· Stillwater will absorb 1,800 acres of Stiliwater Township by the year 2010. It can
go no farther west than Manning Road, the boundary for the city of Grant. T~e last
parcel to be annexed will be the lO0~acre Bergmann Garden Center, the family-run
farm whose annexation may be an echo of the urbanization of the Krueger Tree Farm
a mile away. But a city official said the Bergmann farm will not be annexed until the
family is ready to stop farming:
· Oak Park Heights can expand no farther westthan Manning Road, the boundary
for the city of Lake Bmo. Neighbors are fighting over a proposal that Oak Park
Heights annex 235 acres of Baytown Township between Hwy. 5 and the Lake Elmo
city limits. Eight landowners who control three quarters of the land want sewer and
water service, but 24 other owners want to preserve what is left of their rural '
neighborhood. Baytown Township also opposes the annexation and wants instead to
merge with Lake Elmo.
Stillwater
expansion
land
MINNESOTA
~' ~!,U Sfillwater Twp.. ~.,
Grant
Lake Elmo Twp.
235 acres
in dispute
Oak Park Hts.
Star Tribune graphic
was starting to kill the trees closest
to the road. Development was
coming closer from Stillwater and
from St. Paul.
' Elaine said she cringed the da~
she saw the farmhouse on 'the
other side of Hwy. 36 being
burned down for a new devel-
opment.
"That was a really bad day for
me. I knew ours would be next."
That farm eventually became the
site of a new Target and Cub
Foods complex.
The Kruegers said the bell
started tolling on their farm when
the Stilhvater area school board
decided in the late 1980s that a
pie a day," Elaine said. And they
didn't get just ham sandwiches --
they got ham dinners.
In the 1980s the Kruegers began
selling trees for hmdscaping in
housing developments, com-
mercial areas and new golf
courses. The Kruegers' trees are
everywhere. They line some of the
streets in Stillwater. They are in
Woodbury at the Wedgewood Golf
Club. "And there are six right
there," A1 said, pointing to a line of
Colorado spruce in front of the
house across the street from their
new home in Stillwater.
Their tree farm became more
and more popular as more and
new high school was
............................................................................. ' needed because of all of
The Kruegers "didn't know what to the people moving to
central Washington
do .... They didn't want to fight county.
By 1990, school district
the school.' officials were analyzing
annual tree sale. Some
who started working four properties. The Still-
there when they were in -- Lee Ronning, Land Stewardsh~Project water Township Board
grade school .returned .............................................................................. told them they couldn't
every year right through have the favored site. So
more people moved to the area,
built houses, played golf and cel-
ebrated Christmas. In 1988, they
made a profit for the first time.
Their business had nearly dou-
bled since 1980.
The traffic on Hxw. 36 also had
increased dramatically. Commut-
ers were moving to Wisconsin and
using HWY. 36 and the Stillwater
bridge to get there. The exhaust
from the passing cars and trucks
by lune of that year, they were
talking to lawyers for Violet Kern,
the widow of Oscar (Bud) Kern
and owner of 130 acres of land
that was part of his great-grand-
father George Kern's homestead.
"It was a matter of the school
wanting that area," Violet Kern
said. "I had the land and had to
decide what to do with it. My hus-
band always said it wasn't going to
stay a farm forever, so I decided to
college.
People were promoted through
the ranks. They started by direct-
ing cars to parking spots in the lot.
Then they became "branch man-
agers'' -- Al laughed -- in charge
of cleaning up the branches. Some
operated the machine that baled
the trees into compact netting.
Others were sales people. Others
handed out the Tootsie Rolls.
"We fed them all, 30, 35 pco-
subdivide. I figured my husband
would be proud to know that part
of the farm went for education
purposes."
David Wettergren, the receptly
retired school superintendent,'
said the Kern property was choice
because the price of $1.3 million
was right, the highway system
around it was good and the loca-
tion was almost exactly in the
middle of the district.
By July 1990, the district had an
option to buy the Kern property,
and it had a problem. The only
way it could get essential sewer
and water lines to the site was to
have Oak Park Heights annex the
400 acres between the existing city
limits and the proposed school
site.
But the city would not annex
the land unless the property own-
ers filed a petition with the Min-
nesota Municipal Board to seek
the annexation. Violet Kern, of
course, agreed. So did Elmer
Haase, who owned the land east of
the Kruegers.
Couldn't fight the school
That left the Kruegers. The un-
derground lines would run right
throUgh the middle of their farm.
Elaine remembers feeling "boxed
in" because she thought .if they
didn't agree to sign, the right-of-
way for the underground pipes
would be taken by eminent do-
main. So they signed.
Lee Ronning of the Land Stew-
ardship Project (LSP), a farm
preservation group, who talked to
the Kruegers about that time,
said: "They were bewildered.
They didn't know what to do."
The Kruegers, she said, "are
the kind of people you think of
when you think of good, hard-
working people. These wonderful,
kind people wanted to be good
members of the community.
They didn't want to fight the
school."
With the land across HWY. 36
already cleared for development,
the Kruegers and everyone else
knew that development would
follow the sewer and water lines
out to the school.
They were right. ^ Wal-Mart
store was built in 1992, when the
first sewer lines were put in, on
what had been the Haase farm.
Across Hwy. 36, construction
started on the Target and Cub
Foods complex in 1993. The city's
new water tower to serve the de-
veloping area was built on one
acre in a corner of the Kruegers'
land.
Seeing all that coming, A1 and
Elaine Krueger had to' decide
what to do.
As long as they operated the
tree farm, they would be protected
from increased property taxes and
assessments caused by de-
velopment. But if they sold, stay, I0
years later, they would have had to
Turn to TREES on A7
IN DEVELOPer'S ATH
Star Tri3une Photo by M~e Zerby
The Krueger Tree Farm has been divided Into a housing development On the
left and a Menards store on the right. A few pine trees grace the remain-
lng land, which is still classified as agricultural for property tax purposes.'
.DeveloPment along highwaY
leads to a farm's farewell
pay higher commercial p~operty
taxes rather than agricultural rates
for the preceding three years. And
they would have had. to pay sewer
and water hookup charges for any
subdivided lots.
The family ~ituation was an-
other factor. Their five kids.were
grown and long gone. Al, who is
now 71, had retired from Ander-
sen in 1983 and had a pension. He
was worried about those potential
assessments. "I didn't want a ,big
lien on the property,' he said.
Even if it was time to get out of
the tree-farming business, they
didn't want to see the land that
had been part of their lives for so
many years just carved up and
paved over.
The Kruegers thought about
donating 'the 37 acres ,of oak
woods to a preservation group or
to the school. But Al said none of
the nonprofit groups could afford
to build a fence around it. The new
school eventually turned the
adjoining part of the woods that
the Kern family had saved into. an
· environmental learning center.
While four of the Kruegers' chil-
dren supported their parents'
decision to sell, Nell wanted them
to donate the woods to the school
because it would lose part of its tax
base to Oak Park Heights, whose
City Council wants to annex the
land. And Baytown Township
would rather merge with Lake
Elmo.
The Minnesota Municipal
Board will decide the issue.
Rick Packer, a project manager
with Arcon Development Inc., one
of the developers of the Krueger
property and a member of the
Metropolitan Council, said he has
little sympathy.for those who con-
tend the area should not be devel-
oped. With a growing population
in the metropolitan area, housing
has to be built somewhere, and it
has to be accompanied by expan-
sion of commercial enterprise
such as shopping centers and gov-
ernment services such as schools
for the people who live there, he
said.
"Those Washington County
cities and townships could have
said, 'We don't want to grow.' If
that happened~ the schoo! would
have gone elsewhere. The prob-
lem- if you want to call it a prob-
lem- wouldn't go away, it would
go elsewhere," Packer said.
Barbara O'Neal, mayor of Oak
Park Heights when the land was
and use it as a tax ......... .. ..................... ;. annexed for the
write-off. His wife, ,
Debbie, wanted them ~l~you ha~l
to donate the whole ~
100 acres to be used as your druthers~ '
a pa~rk,. :. ............ ,, '" you'd still be
· - :oeooie said It ......
wasn't our decision'to lgPgng there,
make, but we still own but yOU
our feelings about it,"
She has since criti- up your mind
cized the developers t~nd time goes
and the city for the
way the 64-acre pot- on."
tion was cleared and
school, said that devel-
opment of the Hwy. 36
corridor . "was
inevitable."
Steve Russell, Still-
water's, community
development director,
agreed: "We're the ser-
vice area for people
who are moving to the
rural areas of Wash-
ington County and
Wisconsin."
But Ronning of the
the house and trees -- Elaine. Krueger Land Stewardship Pro-
burned. She appeared ject said if there were
at a City Council meet-
ing recently to revisit
complaints that City Administra-
tor Mike Robertson said already
had been answered.
Debbie is passionate, even an-
gry, about what happened. "Peo-
ple say I'm vindictive," she said
in an interview. "I'm not. It's the
healing process."
Westward mardh
The development, westward
along the Hwy..36 corridor has
not stopped. There's the Menards
under construction on part of the
former Krueger land and a Rain-
bow Foods store and a strip mall
are being built just west of there.
Eight landowners who own
most of the 235 acres from HWY.
~ west to the border with Lake
Elmo are seeking annexation by
Oak Park Heights. so they can
hook up to the water and sewer
service and develop their land.
But 24 landowners who own
the rest of the land oppose the
annexation -- either because they
run companies that don't need
expensive municipal services or
because they want to protect what
they regard as a rural lifestyle. Bay-
tighter controls :on
development in the
metropolitan area, then that sub-
urban growth would not have
occurred and the commercial strip
along HWY. 36 and the new high
school would not have been
needed.
The question remains: If a
farm is surrounded by commer-
cial development, is there any
point in preventing it from being
developed?
"If you're talking about Plan-
ning 101 and concentric growth
and efficient use of the land, 'no.'
But if you're talking about quality
of life and aesthetics, 'yes,' "Ron-
ning said.
Al 'and Elaine Krueger have
lived through the pressures. But
they are tired of remembering it.
"If you had your druthers,
you'd still be living there, but you
.make up your mind and time
goes on," Elaine said.
--A home video of the Kruegers'
tree farm is available' online at
http://www, startribune, com. In
it, the family talks about the joys
and daily routine of running the
business.
The farm has "given us a
whole lot more than just
trees and land. It's given
us a lifestyle; it's given us a
way to structure and run
our own lives. It's given us
appreciation for the land
and appreciation for liv-
ing things .... And even
though the farm isn't there
in the future, a part of us
will always be there."
-- Nell Krueger, in family video
Star Tribune Photo by Mike Zerby
Al and Elaine Krueger, with their son Nell and his wife, Debble, stand on the site of the family's
former Christmas tree farm on Hwy, 36 near StillWater, "1 never planned on moving," Al
Krueger said. "1 always said they'd have to carry me out in a pine box with a few balsam
boughs. Times change. Never say never."
~hoto courtesy of the Krueger family
Al Krueger's grandfather Fredrick bought the farm
in 1883. He posed for a photo at the homestead,
3 miles west of the St. Croix River.
In"develoPmenfs path,, a farm folds
The transformation
of the Krueger
family's land - from
Christmas tree farm
to suburban
landscape - is a
story that's being
played across the
metro area.
By Dennis Cassano
Star Tribune Staff Writer
The home video shows the Krueger family work-
ing in the fields, nurturing and pruning the spruce
and balsam for sale at Christmas:
But in the background of that pastoral calm is the
never-ending din from traffic speeding by on Hvw.
36 just west of Stillwater.
The clash of images is profound, and the 'family
knew that all those cars meant the 101-acre Krueger
Tree Farm would be sold for development.
Now all that's left is the video. The 64 acres of
conifers and 37 acres of woods-- once a rural part of
Basqown Township -- are the site of a Menards store
and 69 upscale houses in the city of Oak Park
Heights.
The anguished decision by A1 and Elaine Krueger
in 1992 to sell the farm that had been in the Krueger
family for'more than 100 years is one that has been
made by thousands of families in the Twin Cities and
other growing metropolitan areas -- and will be
'made by many more.
From 1990 to 1996, more than 150,000 acres of
farm fields have become suburban lots, strip malls
and industrial sites in 14 counties that are part of the
extended Twin Cities metro area.
Turn to TREES on A6 .,...
Also on A6:
-- The farm's developer has fared well.
-- Changes along the Hwy. 36 corridor.
TREES j~'om A.I.
Family faces tough choices
as d velopment encroaches
The Kruegers know firsthand
how decisions by other people
and institutions create the urban-
ization -- some say sprawl -- that
ripples out to affect adjoining
landowners. And they know how
those decisions disrupt lives,
strain family bonds and reverber-
ate for years from one neighbor
to the next.
"I never planned on moving,"
Al Krueger said. "I always said
they'd have to carry me out in a
pine box with 'a few balsam
boughs. Times change. Never say
never."
Al's grandfather, Fredrick Kru-
ger, bought the farm three miles
west of the St. Croix River from
the family of homesteader John
Many in 1883. Sometime later,
someone changed the spelling to
"Krueger." ,
Marry.and his neighbor to the
west, George Kern; had bought
their farms from the U.S~ govern-
ment in 1854, 17 years after the
Oiibwe and Dakota nationsceded
the land east of the Mississippi
Rib, er in treaties.
What is now Hwy. 36 may have
started as a trail or wagon road
serving Marry, Kern and other
farmers, who cleared most of the
oak and brush from their land to
raise crops and provide pasture
for their livestock.
Marty and later Fredrick Kru-
ger decided not to cut down the
37 acres'of oak woods onthe hill
at the southern edge of the farm.
Kern also kept the small woods
on his adioining land.
For 140 years, the
But that doesn't mean the de-
cision to sell is ever easy.
Shave'and a haircut
It took Al's grandparents three
months to haul their belongings
and nine children from Indiana
to their new farm by horse-draxxm
wagon back in 1883.
Family members looked for any
opportunity to make money to
support themselves. Al's father
gave shaves and haircuts to the
lumberiacks who came over to the
farm on Sunday afternoons from
the lumbering camp next door--
just east of where the Wal-Mart is
now.
He left the farm when he mar-
ried and bought another place a
mile and a half away in Lake Elmo,
where Al and his two brothers and
two sisters were raised.
One of Al's bachelor uncles,
John Krueger, took over the origi-
nal farm when Al's grandfather
died in 1903.
Al helped out on his dad's
farm arid started working at the
Andersen Corp. window factory
in nearby Bayport in 1947. He
and Elaine, who was working at
the county extension agent's of-
fice and at a restaurant, were
married in the fall of 1947.
Al's Uncle John, who had had
a stroke and had to move into a
nursing home, offered the farm to
'the newlyweds.
They bought it on a contract for
deed that included a provision
allowing Iohn to have "two acres
in'the northeast corner of the farm
or the southwest bed-
Kerns, the Martys and ................................. room of the house," Al
then the' Kruegers
hunted, hiked and 'tl/[Ze hod the
watched the deer and best of both
other wildlife in those IOoF/ds. We
woods.
"We had th'e best of IOere three
both worlds," Elaine }TtilesRolll
Krueger said. "We were
Krueger said.
"He thought he
niight get well and
wanted to have a place
to come back to," but
John died 'in 1951
without returning.
A! and Elaine
three miles from town, town~ but we moved to the farm in
the spring of 1948 and
but we had 37 acres of hod S7 acres of spent the next 46 years
woods the kids could
carflp in. It was great. It IOood$... It there, raising their
was a wonderful place IOO.$ a'
to live."
But the Kruegers wottdelfttl
don't live ~here any-. place to live."
more.
Now the woods are _'Elaine Krueger
family and creating a
tree farm that became
a community institu-
tion. Their Christmas
trees decorated the
homes of three
filled with 69 houses' generations of area
with values tanging ......... '.' ....................... families and have
from $200,000 to
$325,000 on lots of about one-
third acre, with room for eight
more homes.
On the other 64 acres where
the farmhouse once stood and
the Christmas trees once grew, a
Menards is under construction.
Some figure it was inevitable.
The area around the Krueger
farm has been growing rapidly in
this decade. The population of
the principal cities and townships
on the Hwy. 36 corridor has in-
creased by 3,800 people to an
estimated 33,862 -- nearly 13
percent -- from 1990 to 1996, the
Metropolitan Council estimates.
While preventing urban sprawl
has become a national concern
and preserving open space in
new developments is a common
practice in many places, includ-
ing the Twin Cities metro area,
not all desirable sites can be pro-
tected. Because of its location,
the Krueger farm was not the sort
of place that should be preserved,
said Tom Daniels, a nationally
recognized figure in the preserva-
tion effort.
Daniels-- director of the Agri-
cultural Preserve Board of Lan-
caster County, Pa., a county that
is trying to prevent urban sprawl
from using up farmland -- saw
the Krueger place during a trip to
Minnesota earlier this year.
"When you have commercial
development all around you, with
a major highway going by, the
signals are pretty strong that the
land should be developed," he
said in a recent inlcrview.
graced the governor's
residence. Their trees won blue
ribbons at the State Fair.
But that did not happen right
away. When they moved to the
farm, they had a tractor and a
manure spreader, but little furni-
ture, no electricity and no run-
ning water. They warmed the first
floor with an oil-burning heater
in the middle of the living room,
and the house reeked of fuel oil.
They had to haul oil into the
house in five- gallon cans a cou-
ple of times a day.
They got electricity on Dec. 15,
1948. It was such an important
landmark that Al still remembers
the date': That also was the )'ear
Neil was born.
David was born in 1951. That's
the year they got indoor plumbing.
It Was like that. The important-
dates in the life of the family
coincided with the important
dates in the history of the farm.
Al and Elaine planted their
first 500 trees for soil conserva-
tion purposes in 1949 and anoth-
er 500 in 1950.
In 1954 they cut their first tree
for their own Christmas celebra-
tion. The next year they cut one for
themselves and one for a neigh-
bot.
Then, with traffic increasing on
the two-lane road that was to
become Hwy. 36, "we realized we
had location, location, location,"
Elaine said, and in 1957 the)' de-
cided to establish a Christmas tree
farm.
Sure enough, just three years
laler, the Minnesota Highwai' De-
MONDAY, AUGUST 11 · 1997
Developer does well on farm deal ,
would have a market value of
Tlre~Krueger farm was on the
market for more thaa~ a year before "There comes a time When the demographics
developer Uob Brackey bo~,gl~rit are right for development''''
in 1994 for nearly $2 milbon.
Brackey, owner of Brac's Auto
Parts Inc., in St. Paul, sold the 37-
acre woods ahnost iminediately
for an upscale housing project to
Arcon Development Inc. The price
was $1.1 million; Arcon also paid
another $357,137 for water and
sewer hookups. I1~ that transaction
Brackey recovered slight!y more
titan half of what he is paying over
several years for the entire 101
acres.
Brackey also sold nearly 12
acres to Menards for nearly $1.8
million in Au§ust 1995.
Rick Packer, Arcon Development Inc.
"You can rest assured that he
did very well. And we did, too,"
said Rick Packer, a project man-
ager with Arcon and a member of
the Metropolitan Council.
Brackey, who refused to b'e in-
terviewed for this article, contin-
ues to do well on property taxes.
He still owns 49 acres of the for-
inet Krueger farm, and the Wash-
about $2.6 million and would be
taxed about $110,000.
Packer said Arcon Develop-
ment expected that it would take
three years to sell most of the 77
lots in the 37-acre housing devel-
opment, but the demand for lots is
so high that it has taken just two.
ington County Assessor's office "Ther'e comes a time when the
still classifies it as agricultural demographics are right for devel-
property. Including the house that opment," Packer'said..
was torn down last year, the 49 ' Although built in the former
acres has a market value for prop- woods and advertised as "wood-
e rty tax purposes of $ l 10,000, and
he will pay $1,810 in 1997 property
taxes, county records show.
If the land were classified as
vacant commercial property, it
ed lots," Packer acknowledged
that' by the time the streets and
utilities are pUt in, "you don't have
much of a woods left."
~ Dennis Cassano'
Star Tribune Photo by Mike Zerby
The 77 lots in this 37-acre development on the former Krueger property are
advertised as "wooded," but once streets and utilities are put in, "you don't
have much of a woods left," said Rick Packer, project manager.