4.4 ERMUSR 05-14-2024Elk River _ -
Municipal Utilities UTILITIES COMMISSION MEETING
TO:
FROM:
ERMU Commission
Mark Hanson — General Manager
MEETING DATE:
AGENDA ITEM NUMBER:
May 14, 2024
4.4
SUBJECT:
Utility Line Extensions in Urban Services Area
ACTION REQUESTED:
Commission direction on maintaining the "both or neither" practice of extending water and
sewer utility lines to new developments.
BACKGROUND:
It has been a longstanding practice for the City of Elk River (City) and Elk River Municipal
Utilities (ERMU) to only extend water and sewer utilities to new developments if both services
can be provided. In practice, if either service could not be provided, regardless of reason (cost,
elevation, distance, etc.) then neither service would be provided. The practice was most
recently reviewed in a combined City Council/ERMU Commission meeting in January 2023. The
outcome of the discussion was to continue the practice of only providing sewer and water
services if both services could be extended.
The discussion at the combined meeting focused on a proposed 500-unit development by
Capstone Homes in the far northwest corner of the proposed expanded urban services area.
Due to the existence of a nearby sanitary force main, the city was able to provide sanitary
sewer service to the proposed development, but the site would have required the construction
of approximately five miles of new trunk water main. A five -mile trunk line with no other users
creates significant safety and financial risks, so ERMU informed the developer it was not able to
extend the trunk line. Since water service could not be provided, the City Council and ERMU
Commission decided against providing the sanitary service. Upon hearing this decision,
Capstone Homes decided against pursuing the development.
DISCUSSION:
Recently, another developer, Twin Cities Land Development (TCLD), has expressed interest in
the same site. TCLD has proposed a 105-unit development with lot sizes ranging from
approximately one to eight (1-8) acres. Unlike the Capstone proposal, the larger lot sizes of the
TCLD proposal allow for individual (private) water and sewer systems. Although the lots are
sized to permit the installation of septic systems, TCLD has requested a hybrid system where
water service is provided by private well, but sanitary service is provided by the City's sanitary
sewer system (see attached TCLD concept plan and overlay).
Page 1 of 2
140
Since the TCLD proposal does not require municipal water services, city staff will be asking their
Council if they would be open to providing city sewer services to the Ranch Road Development
even if ERMU is not extending the trunk water line to the development. In anticipation of the
question being asked by the Council, city staff would like to know if the ERMU Commission
would support extending sewer, but not water, to the development.
ERMU staff will share the Commission's major discussion points and final direction with city
staff for inclusion in their May 20, 2024, council report.
ATTACHMENTS:
• TCLD Ranch Road Development Concept Plan
• TCLD Ranch Road Development Overlay
Page 2 of 2
141
Ranch Road Development
Acreage Lots in Elk River - Concept Plan
The team at Twin Cities Land Development (TCLD) is pleased to propose a concept for a new residential
neighborhood along Ranch Road in Elk River, MN.
PROJECT SUMMARY
The Ranch Road Development proposes:
- —105 new construction, for -sale homes (across —217 gross acres)
- A range of lot sizes for buyers to choose from (min 1 acres to 8+ acres)
Our understanding is that alternative concepts for development at this location have been considered in the past,
and that the City has generally indicated a desire for lower density housing within this area of the City. We agree
that this is the highest and best use for this land, considering the beauty of the existing land and the surrounding
community context. We are confident that there is very strong builder/home-buyer demand for larger acreage
residential lots in Elk River.
The overall layout of the neighborhood is designed to showcase and preserve the existing natural resources - a
winding rural road and a new public trail will allow connections to nature and neighbors. The project proposes
dedication of land to the City, which could be used to expand and enhance public access to the existing Burr Oak
Park.
DEVELOPMENT GOALS
Through the development at Ranch Road, TCLD aims to achieve mutually desired community benefits for both
existing and new residents in Elk River. Through the creation of a new, thoughtfully crafted residential
neighborhood, Ranch Road Development strives to bring to life the City's vision for the Ranch Road Corridor in
the following ways:
1. Residential Land Use: Encourage residential development with a variety of housing types that fosters high -
quality, livable neighborhoods, supports the established character of the area, and fosters greater housing
choice. Ranch Road Development is positioned between the more traditional Windsor neighborhood and
surrounded by agricultural / rural land. The project proposes a mix of lot sizes that will provide a
complementary buffer and transition between the existing uses. Ranch Road Development will help to expand
the range of housing options available in the City of Elk River and provide much -needed new home -ownership
opportunities. The neighborhood design allows for a range of price points and considers that many
homebuyers today wish to be part of a community with a strong sense of place while also providing a sense
of independence and open private space.
2. Parks / Connectivity: City comprehensive plans indicate a desire for new residential neighborhoods to
provide new trail connections. Elk River's Trails Master Plan indicates a desire for regional trail connections
in this general area of the City that can promote walkability and connect residents to public parks. Ranch Road
Development proposes a new public trail that will connect new residents as well as existing area residents to
the existing Burr Oak Park. In addition, the project proposes two areas of park land dedication totaling ^3
acres to expand the existing park area. We believe parks and trails are critical amenities for the community
and are pleased to support this public interest.
Ranch Road Development —Concept Plan 4.17.24
142
3. Thoughtful Utility Design: Evaluate the pros/cons of septic versus municipal sewer service.
Rural developments typically include individual wells and septic systems. The proposed concept plan has
been sized in a manner that will support this traditional well/septic rural configuration. However, based on
preliminary engineering review and analysis of the 2023 Feasibility Report prepared by WSB for the City of
Elk River, we propose that there is a unique opportunity to provide homebuyers with a hybrid utility
model; each lot can be served by individual wells for water service, yet can connect to Municipal Sewer via
the existing Windsor Lift Station (as described in the Feasibility study through the Northwest Expansion area
findings).
This hybrid well/sewer configuration has been successfully executed in many communities and provides an
appealing option for both homebuyers as well as municipalities. New lots would contribute Sewer Extension
Costs and SAC Fees, providing the funding to support long-term maintenance — providing City control over
the system's function. Homebuyers will benefit from the efficiencies and peace of mind that municipal sewer
services provide, while retaining the sought-after rural feel and character that come with well -water and
acreage lots. TCLD is seeking City feedback and interest in this proposed hybrid utility model.
We sincerely appreciate your time, and all feedback, suggestions, or questions that the City may be able to
provide. We look forward to the opportunity to collaborate with you to bring a shared vision to fruition for
the Ranch Road Corridor.
Thank you,
CCWLa_1 D uh`_�
Twin Cities Land Development
Ranch Road Development —Concept Plan 4.17.24
143
TWIN CITIES
LAND DEVELOPMENT
ABOUT US
The TCLD team has experience in every facet of Twin Cities real estate development, investment, and
management. The project team has developed thousands of single-family and multi -family lots, establishing
itself as the most prominent locally owned lot developer in the Twin Cities.
As a trusted residential developer, our track record speaks for itself. Over the years, we have successfully brought
numerous projects to life, earning a reputation for integrity, reliability, and exceptional results. Our diverse
portfolio showcases our ability to adapt to evolving market trends and deliver projects that stand the test of
time. Learn more at: www.TCLandDev.com .
LOCAL DEVELOPMENT EXPERIENCE
• Phruo T
{tr'+tlr� Fr S�
4•tle AnG+.ri
gig�ndfu A•'
Coon RaP,dQ" baa„e�
�nlaw. r
J
rookl P k t) /
6 Yn ar r:a,rr wnrr
MnrS'CSP Grure 0 LI 9rarlakr
pa-n n„i Hraels
.,
Phpr,wph �sr.,ee tl
',var�mp j� MirSnAapolis � ' .;'raw, .. apnrrs
welere
s i n,s ran 51 Paul Monln„ � Q
r.Wua
M'nneYonka rre 5, rmd Wood6�
urrr ki Edina
.Li�::::.5 f i[iCn Prapr ^W � In.fi f.r:riRnrF,�li�
Lam, r: Project Lots
ax Burr svdie 1 Forest Hill Farms 35
Rafe �a l 2 Pleasant Creek 44
Apple vskr
3 Headwaters 54
_ 4 Prairie Village 70
STerritory 25
6 Pines at Elm Creek 58
7 Boulder Ponds 99
8 Adelaide Landing 324
9 Orono Preserve 39
10 Brayburn Trails 255
11 Glen View Farm 141
12Oakwood Ponds 210
13 Mill Pond 93
14 G atewa y 16
15 Woods of Medina 16
16 Lexington Waters 272
17 Anton Village 335
18 Evanswood 365
19 Brayburn Trails East 146
20 Trott Brook Crossing 275
City
Forest Lake
Prior Lake
Forest Lake
Hugo
Prior Lake
Plymouth
Lake Elmo
Hugo
Orono
Dayton
Woodbury
Bla ine
Blaine
Grant
Medina
Bla ine
St. Michael
Maple Grove
Dayton
Ramsey
Status
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Active
Completed
Active
Active
Active
Active
Completed
Active
Active
Active
Active
Active
Active
Ranch Road Development —Concept Plan 4.17.24
144
s` aouT12tTZao -
\ 4 ahl I 22 13 24 25
'•. - y • �"
d I CD
�0o � X,2; $6 I
1 ' I Ix
1$
\12 12 u3w �,16A
- �� J❑` A ,U Q v
� 1
• 6 13� l 1V �1 3
fj
Ic
.:_4>: - 2.< 3 p o Li�
a a •� ,. II � � "soM
ootnd z� ' i ceder
❑ rv.. t \ 1 111 1\ i�1 _I • W
.Q vs !
i� r �• ' T �r _i �" v 16 n
CA
15
r
•? ''
oz :>
•Y
20
wet
JI
MUM
r ; <� '�;��j�-.j. .:� .ai� .!. M,7'� � •Jam'
forks - GIS Division P :.` '� % .'; ?�.% s_