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Home My WebLink About4. City Council Direction to Staff on MUSA ., , � , . f, z�� o ' osemaun� PMONE 1612)423-�att 2H75•�45tn Street West.Rosemount,Minnesota MAYOR Eaware B. 1ACWetromy FAX (6t2)d23-5203 Mading Atldress: . P.O. Box 510.Rosemount,Minnesota 5506B-O570 C�UNCILMEM9EaS Shena Ktassen Jamas tReol Staats Matry Wii�cox Denms Wiooermann ApMiN1S'•AATCR Steonan.;ifk TO: Mayor E.B. McMenomy Council Memi�ers: Klassen, Staats, Willco;c, Wipper:naan n � FROM: Stephan Ji1K, Citv Aciministratar � DATy: l�iay 2 2, 1 9?2 � Rr: Property Held by the Kell y Trust I thought tha� in preparation for discussion on the Comprehensive Guide Plan and s�ecifically the Rural Residential issue some review of the Kelly and Daly prope:�y would be in order. The Kelly T�ust represents heirs of the Ha�nm Founda�ian. T�e Trust owns szveral acreages in the metropolitan arza an� are � noted for their success �in• challenging the City of Bloomington' s attempt to gain control of their property for const�uction o� the Mall o� Ame�ica. A number of the prope�ties ara use3 as sheep pasture. ' sneep farming is pursued bv t:�e T�ust as a business activity, a:zd at present grazing is the Trust' s desired use for their hol�ings in r2ose:nount. In Rose�ount the i�elly Trust owns appro:�i�atnly 4Q0 acres i:� Section 19 (t�e Birger farm area) and approximately 15� acres in Section 20 (the Daly farm araa) . The majority of the B1?"y^2� farm is zoned R-1 Single Family Residen�ial. A small por�'_o:� -- now the si�e of the elementarv school and park -- was �rev:.ouslv zoned R:� Multi�?e Residential. An�oroxim�tely 90 acr�s in the northwest cor�er of the Birger far� is zcned AG Agriculture. The Daly farm portion is zoned Agriculture. _ The 1990 Land Use Plan designates all of the Birger �arm {excent park and open space areas) as medium aensity resider.�ial. T:�e 2000 Land Use Plan also designates the Daly farm for medium density residential development. It is the intent of state enabling legislation that land use plans be consistent with - zoning ordinances. However, since long range plans often designate land uses that are staged and thus may not re�lect underlying zoning, the Minnesota Su�re:ne Court has heid that where any discrepancies mav exist the zoni�g designation prevai?s. ��ver��tvig s �om:s�a `(.. C f� C�osemeunt t� , , iCell �y Bac:cg=cunc page 2 At present the representatives of the Kelly Trust have in�icated their desire to sell both of the properties f�r developme�t. Staff has had several mee�ings with one potential buyer, the Duffrin development firm. History of the P=operty 1971 to 1973 Original se=�er plan crea�ed when MWCC took over included plans for how all of west Rosemount could be serve�. by sewe�. Mid 1970s La�ge developers such as Mickelson and Ed Dunn put out feelers for the City s reaction to urban aensity development in t'�e northwes�ern par� of the City. The City incicated at tha� time that leapfrog develapment would not be approved and that the areas along CR 38 wherz not available for immediate utili�v serve. ' Late 1970s Mickelsan a:�d Dunn proceed with developme:�t of larce lot unsewered �pla�s in Micke?son' s 1st and 2nd and Rose�ount Hil?s' 1st and 2nd. U;�date of the preszn� Guide P1an began in 1978. Orrin Thompson' s (U.S. Home Corp. ) proposal for urban deve?o�mer:� in Section 19 (Country .Hills) was presented. At this point the current urban and rural residential boundaries are estab?is:�ec and a utili�y feasibility s�udy done for Sections 19 & 20. 1981 Current (1990) Comprehensive Guide Plan adopted. An EAW process an3 final PUD agreement for U.S. Home le� to the inclusion of all of Section 19 in the designated MUSA. Part of the PUD approval also include•� the rezoning of Section 19 for residential development. This is the existing zoning. i 985 U.S. Home dropped its option on part of Section 19, l�aviag 400 of the 670 acres on the market. � � . . i�zll •y Backg_ounc . Page 3 1986 � Kelly trust purcnases the balance ( 400 acres) of Section 19 . Comprehensive Guide Plan Amendment #5 removes the ma;ori�y o= undeveloped property (about 800 acres) f=om the designated MUSA and transfers it to an undesignated ML'SA landbank. The Kelly property is one of the properties so transferred. 1987 Kelly Trust purcnases the Daly farm. 1988 to the Present Late in i988 the City Council and District 196 agree to t'�e concept of the joint use/development of a school anc park complex. Shannon Pa�;s Public Improvements Feasibility Study was or3ere� bv the City Council in January of 1989. City Council d�scussed the possibility of downzoning the urban residential portions of the property to rural residential. The Kelly Trust indicated it would sue should such an action be taken. Discussion on t'�e downzoning is dr��ped and the Shannon Paric street anc utilitv � pro�ect is or3ered on a split vote. Shannon School . The location for Shannon School was selecte3 bv the City and School District 196 after the o=iginal site selected by the school dist_ict (-�ahere Amber-woo� is currently located) met wi�n considerable opposition due to the lack of City utiliLies in the area and the environmental impact such develvpment would have on the site' s wooded hills. The site on the Kelly Trus� and U.S. Home pr�perties met the sc:�ool district' s c�iteria and provi3ed an opnortunitv to co-locate school and park �acilities. T:�e s'�e was iden�ified in the Comprehensive Guide Plan and the U.S. Home PUD as a community park. Park plans were in the five-year CIP prior to the joint use proposal with the sc:�ool district: Access to the site was available through the Country Hills developmen�, but access from County Road 38 viz Shannon Parkway was a priority for the school district. Late in 1988 the City Council and School Boar3 agreed to the concept of the joint use/development of a school and park complex. At that point the City negotiated a "pre-dedication ag:eement" with the Kelly Estate for approximately 20 acres of land. The school district agreed to purchase 13 . 5 acres of lan� for the school site. The City negotiate3 with t?�e ��strict "pay" tne City for any land that could be jointiv acquired and utilized. This was to result in a $52,500 r�imbursement to the City form the school district. •. � y - . Itail y Bac:cground Page 4 rinancing of the project in 1989 (ahead of the schedule established by the CIP) was possible due to several factors: 1 ) Portions of the 1992, 1992, and 1993 CIP ex�enditures were already in the CIP "reser;re, " 2 ) The City would receive $�2,000 from the school district for land acquisition, 3) The City would receive and unanticipated $33,000 in per:nit fees from deve�opme:�� of the school, and 4) The City would receive anothe= $33,004 iz "excess" connection charges due t� the diff�rence bet�een locating the school on ten acrzs and the development of singie family homes on that same site. Park Pre-dedication Agreement in or3er to meet the school dis�ric�' s schedule a "pre- dedication" agreement was negotiated with the Ke11y Trus� to secure approximately 20 ac�es of land for the park at Shannon Elementary School. The dedication was base� on an amount af land egual to 4� of t�ze proposed developable residen�ial units within t:�e total a_�a (which included the �aly farm portion of the property) based 'on the formula: Total acreage x no. of un:ts/acre x .04 = Dedic��ion Or: 547.01 x 2 x .04 = 43.76 acres Since th� f�rmula is baszd on va:ia�les, tze actua? decica�ion required will be calculated at t:�e time o� development, pursuant to the Code and Ordinances in effect at the time such devesopment occurs. Thus additional par:� dedica�ions wiil be made based on the lev�l of previously dedicat�d 2J acres. This would also appear to require the City to reimburse the Kelly Trust for any portion of the pre-de3icated prope�tg not requir=_d should development occur at a density be�ow t�at which would trigger its dedication. Pending Assessments Against the Property Based on the extension of utilities along Shannon Parkway in the Country Hills subdivision and �he R-1 Single Family ResidentiaZ - zoning of the Kelly property, the feasibility study for stre��s and utilities to serve the park included the provision of utilities through the Ke11y Trust portion of Shannon Parkway. Pending assessments against the Rally pronerties for the street and utilities are $32,615 for the parcel south of Shannon Ele�►entar� and $277,365 for the remainder of the pranerty. There are no assess�ents against the Daly fa�m por�ion of the proper�� for this pro�ect. T:�ese assessments were levied against the property base3 on t:�e present zcning of R-1 wh�ch would a�low the use o� the utili�ies and i:nprovements for such developme:�t. I� dow.^.zoning to RR or AG ., > , Kell y Back�round , Page 5 is done the property owner would not have �enefit from t:�e improvements and the City may be liable for paymen� of those assessments. � Zoning Change for Property The process necessary to consider the change from "urban residential" to "rural r�sidential" on the Birger far.n is an amendmer.t to the Zoning Or3inance. The amendment would be required to change the current zoning from R-1 to RR. An amendment to the Zoning Ordinance may be initiated by the Planning Commission, requested. Amendments to the Zoning Ordi:�ance re�uire approval by two-thi�3s vot� of the Ci�y Counci�. If a zoning change was suc�essful the Citv woul� ini�iate a change in the guide plan for consis�ency bet;aeen the two documents. The legal implications of a change in either the guide plan or zoning ordinance depend upon the impact of the particul.ar landowner involved. In this case, we arz rei�rring to the c:�ange in the value of property owned by the Kelly Trust. The Kelly Trust is opposed to the down z�n:ng of their property and would file suite against the City to pav damages for the taking of propertJ {�he loss of a higher use o� �he propertJ. ) Cit� staff was asked to discuss options for devei�pment of t`�e � Kelly property allowi�g for gr�a�z� open s�ace, large lot ghase in, deve;.opment of a transition zone, etc. . , T�is has not been done because the �ielly Trust is simply marketing the prooert� for develo�ment by ot:zers leaving these discussions to new owne_s/dzvelopers. 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