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OAH NO. 2-0330-19762-BA |
STATE
OF
OFFICE OF ADMINISTRATIVE HEARINGS
FOR THE MUNICIPAL BOUNDARY ADJUSTMENT UNIT
|
In
the Matter of the Petition of the City of pursuant
to Minnesota Statutes 414.031 |
FINDINGS OF
FACT, CONCLUSIONS OF LAW, AND ORDER |
The above entitled matter came on for an
evidentiary hearing before Administrative Law Judge Raymond R. Krause at 2:00 p.m.
on August 18, 2008 at
J. Brad Person, Baxter City Attorney, appeared
on behalf of the Petitioner, City of
STATEMENT OF
ISSUE
The
issue in this proceeding is whether the Petition for Annexation should be
granted based on the factors set out in statute.[1] The ALJ finds that the Petition should be
granted.
Based
upon all of the testimony, exhibits and the record in the proceeding, the
Administrative Law Judge makes the following:
FINDINGS OF
FACT
Procedural
History
1.
On May 2, 2008,
the City of Baxter filed a resolution of its City Council with the Chief
Administrative Law Judge seeking the annexation of approximately 66.87 acres of
property located in West Crow Wing Unorganized Territory pursuant to Minn.
Stat. § 414.031, subd. 1(a)(1). The
resolution, which was dated March 18, 2008, proposed for annexation the area
described as follows:
Cheri Brooks
[Street Address Redacted]
That part
of the Southwest Quarter of the Southwest Quarter (SW1/4-SW1/4) of Section
Thirty-one (31), Township One Hundred Thirty-four (134), Range Twenty-eight
(28), described as follows: Beginning at
the Southwest corner of said Section 31; thence Easterly along the South line
of said Section a distance of 1100 feet to the place of beginning; thence North
200 feet parallel to the West line of said Section; thence Easterly 200 feet
parallel to the South line of said Section; thence South parallel to the West
line of said Section to the South line of said Section; thence Westerly along
said Section line to the place of beginning. Subject to mineral reservations of
record;
Stephen and Julie Dabill
[Street Address Redacted]
The West
200 feet of the South 544.50 feet of the East Half of the Southwest Quarter of
the Southwest Quarter (E1/2-SW1/4-SW1/4) of Section Thirty-one (31), Township
One Hundred Thirty-four (134), Range Twenty-eight (28);
Kip
[Street Address Redacted]
The East
165 feet of the East Half of the East Half of the Southwest Quarter of the
Southeast Quarter, Section Thirty-one (31), Township One Hundred Thirty-four
(134), Range Twenty-eight (28);
Dorothy Dixon, Dennis Dixon and Sharon Petterson
[Street Address Redacted]
The
Southwest Quarter of the Southeast Quarter, Section Thirty-one (31), Township
One Hundred Thirty-four (134), Range Twenty-eight (28); EXCEPT the West Half of
the East Half, ALSO EXCEPT the West Half of the Southwest Quarter of the
Southeast Quarter, AND EXCEPT the East 165 feet of the East Half of the East
Half of the Southwest Quarter of the Southeast Quarter;
John Ferguson
[Street Address Redacted]
The West
150 feet of the West Half of the Southeast Quarter of the Southwest Quarter
(W1/2-SE1/4-SW1/4) of Section Thirty-one (31), Township One Hundred Thirty-four
(134), Range Twenty-eight (28);
Bruce and Angela Kruchten
[Street Address Redacted]
The East
Half of the Southwest Quarter of the Southwest Quarter (E1/2-SW1/4-SW1/4) of
Section Thirty-one (31), Township One Hundred Thirty-four (134), Range
Twenty-eight (28), except the West 200 feet of the South 544.50 feet of the
East Half of the Southwest Quarter of the Southwest Quarter, and except the
South 200 feet of the East 200 feet of the West 1300 feet of the Southwest
Quarter of the Southwest Quarter;
Edward Meyer, Beverly Meyer and Ruby Meyer
[Street Address Redacted]
The East
Half of the West Half of the Southwest Quarter of the Southeast Quarter
(E1/2-W1/2-SW1/4-SE1/4) of Section Thirty-one (31), Township One Hundred
Thirty-four (134), Range Twenty-eight (28);
Darlene Schermann
[Street Address Redacted]
The East
Half of the East Half of the East Half of the Southeast Quarter of the
Southwest Quarter (E1/2-E1/2-E1/2-SE1/4-SW1/4) of Section Thirty-one (31),
Township One Hundred Thirty-four (134), Range Twenty-eight (28);
AND
The West
Half of the West Half of the Southwest Quarter of the Southeast Quarter
(W1/2-W1/2-SW1/4-SE1/4), Section Thirty-one (31), Township One Hundred
Thirty-four (134), Range Twenty-eight (28);
Redman Inc.
The West
Half of the East Half of the Southwest Quarter of the Southeast Quarter
(E1/2- W1/2-SW1/4-SE1/4) of Section
Thirty-one (31), Township One Hundred Thirty-four (134), Range Twenty-eight
(28).
2.
On May 22, 2008,
a Notice of Hearing was issued by the Office of Administrative Hearings and
duly published by the Brainerd Dispatch
for two successive weeks, on May 30, 2008 and June 6, 2008.
3.
The hearing was
opened on June 26, 2008 and was continued to August 18, 2008.
4.
On July 8, 2008,
a Notice of Reconvened Hearing was issued by the Office of Administrative
Hearings and duly published by the Brainerd
Dispatch for two successive weeks, on August 1, 2008 and August 8, 2008.
5.
The Reconvened
Hearing was conducted on August 18, 2008 and the hearing record closed on
August 18, 2008.
Population
6.
According to a
2006 census, the population of Baxter in 2006 was over 7,500.[2]
7.
Baxter’s
population was approximately 1,000 in 1960.
Baxter is growing and is expected to continue to grow, possibly to 12,000
by the year 2030.[3]
8.
There are eight
homes and one business in the subject area.[4]
Physical
Features Generally
9.
Baxter is located
in central
10.
Baxter has
abundant groundwater resources and a high groundwater table, except in the area
near the
11.
Almost all of
Baxter is flat to gently rolling sandy soil.
Because of the makeup of the soil, fertilizers and pesticides from
improper lawn management practices and malfunctioning sewer systems can easily
pollute the groundwater.[7]
12.
Highway 371 bypasses
downtown Brainerd and skirts the eastern boundary of Baxter. This bypass has transformed Baxter to being
the retail, housing and resort gateway to the lakes region of Central Minnesota
with major intersections created between highway 371 and County Roads 48, 210
and 77; and Excelsior Road.[8]
13.
The subject area
consists of two rectangles totaling 66 acres.[9] The eastern portion is surrounded on all four
sides by City property. The western
portion is bounded on three and a half sides by City property.[10]
14.
The southern
boundary of the subject area is
Physical
Development, Planning and Intended Uses for Subject Area
15.
Although
16.
The City of
Transportation
17.
Traffic at the
intersection of
18.
The Minnesota
Department of Transportation has an access management plan for Highway 371 from
Woida Road to the City limits in Nisswa which includes working with local
governments to close accesses and build frontage and backage roads.[15]
19.
Baxter’s 2007
Comprehensive Plan recommends promoting policies and projects that encourage
local traffic to stay off high-speed roads, including use, when possible, of
frontage and backage roads.[16]
20.
Some proposed
backage roads will pass through the subject area.[17]
21.
22.
The north 33 feet
of
23.
The City is
permitted to designate 20% of its roads as “state aid collector roads.” Roads with this designation receive funding
from the state for construction and maintenance. Because approximately 33 feet on the north
side of
24.
If the annexation
is successful, Baxter will receive significantly more funding from the state
for construction and maintenance of
Land Use
Controls, Planning and Comprehensive Plans
25.
The City land
surrounding the eastern part of the subject area is zoned C2, which is the
highest density commercial zoning. The City
land surrounding the western part of the subject area is zoned R2 and R3, which
are medium density and multiple family zoning.
South of Woida Road, the City land is zoned R1, which is low-density
residential.[22]
26.
The County zoning
for the eastern parcel of the subject area is for large, single-family
residential and agricultural use; the zoning for the western parcel is for
rural residential, agricultural and residential use.[23]
27.
As part of its
2008 Alternative Urban Areawide Review (AUAR), the City of
28.
If the County
maintains zoning authority over the subject area, it poses a problem of
inconsistency and a lack of a cohesive plan.
These kinds of zoning conflicts can create islands within the City whose
uses are inconsistent with the uses surrounding them. Proper zoning and effective enforcement
require the subject area to be brought within the City’s zoning authority.[25]
Government
Services
29.
Both Baxter and
the subject area contract with the City of
30.
The subject area
is currently served by the
31.
There has been a
water main on
32.
Baxter is
planning to add water mains between
33.
There are no
sewer lines currently running along
34.
If the parcels on
the subject area are annexed, they could be charged an assessment for
connecting to the new sewer lines. If
the area is not annexed the City would have to carry the cost until there could
be a future assessment for a future connection charge to the City sewer. Deferring the assessment would produce significant
additional costs for the City and would make it less likely that the City could
afford to add the sewer main at this time.[31]
35.
The subject area
and the City are already part of the same school district, District 181, so
annexation will not have an impact on school attendance or enrollment.[32]
Fiscal
Impact
36.
If the subject area
is annexed, the significance of the tax increase on each parcel within the
subject area would vary from about 33% to 80%.
The average increase would be approximately 57%.[33]
Adequacy of
Town Government to Deliver Services
37.
The City of
38.
Baxter’s first
comprehensive plan was created in 1973.[35]
39.
The comprehensive
plans have been developed over time with significant community and leadership
input, include public hearings and opportunities for public comment.[36]
40.
Baxter completed
an Alternative Urban Areawide Review (AUAR) process for North Baxter, an area
including the subject area. An AUAR is
an alternative form of environmental review that substitutes for either an
Environmental Assessment Worksheet (EAW) or an Environmental Impact State (EIS). The AUAR was completed with the cooperation
of
41.
Part of the
assumption underlying the annexation process, and agreed to by the City and the
County, was that the entire AUAR area would be annexed into the City in the
future, even though the City and County have no orderly annexation agreements.[38]
42.
The City of
43.
The City has
specific plans to extend both water and sewage systems past the subject area in
the near future.[40]
44.
The City also
plans to provide fire protection, law enforcement, street improvements, street
maintenance, administrative, recreational and building code services to the
subject area.[41]
45.
There is no
existing town government that can provide these services.
Previous
Annexation Agreements and Orders
46.
The City
presented no evidence of previous annexation agreements and orders.
Environmental
Problems
47.
There are two
areas of wetlands on the eastern portion of the subject area, and one small
area in the western portion. The
wetlands in the northeast corner of the subject area are a Department of
Natural Resources protected area. City
sewer connections would better protect the wetlands on the subject area than do
the current septic systems used on the subject area.[42]
Plans for
Providing Services within Reasonable Time after Annexation
48.
Because the
subject area is almost entirely surrounded by the City and the City already
provides many services, the subject area would have immediate access to City
services.
49.
Extending water
service into the subject area would be a fairly simple matter of stubbing curb
stops to the north side of
50.
Sewer service can
be extended into the subject area once a sewer main is constructed on
Whether
Services are Best Provided through Petition or Alternative
51.
Baxter and
52.
Although there is
no orderly annexation agreement,
53.
The residents of
the subject area did not participate in the public hearing or otherwise comment
on the petition for annexation.
54.
Special
assessments for water and sewage services in the subject area will assist the
City in being able to finance development that will benefit not only the
subject area but the City as a whole.[45]
55.
Bringing the
subject area into the City’s tax structure will contribute to the City’s budget
for its parks and trails and other services, many of which are already being used
by the residents of the subject area.[46]
56.
A single zoning
authority will promote better planning for the area including the subject area.[47]
Information
Gained Through Tour
57.
The subject area
is less than one half mile from (and in sight of) significant commercial
development at the intersection of Highway 371 and
58.
Commercial
development appears to be continuing to grow nearer to the subject area on
59.
Traffic
congestion prevents easy through traffic to and from other residential areas in
the vicinity. Additional frontage and
backage roads would be a significant relief to the current congestion.
CONCLUSIONS
1.
The
Administrative Law Judge has jurisdiction in this matter through the MBA under
Minn. Stat. §§ 414.09 and 414.031.
2.
The proper notice
of the hearing in this matter has been given.
3.
The subject area described
in Petition A-7626 is about to become urban or suburban in character.
4.
Annexation of the
subject area by the City of
5.
Annexation by the
City of
ORDER
1.
IT IS HEREBY
ORDERED that the Petition for Annexation be GRANTED.
Dated:
September 17, 2008
s/Raymond R. Krause
|
RAYMOND R. KRAUSE |
|
Chief Administrative Law
Judge |
NOTICE
This is the final administrative decision
in this case under Minn. Stat. §§ 414.031, 414.09. Any person aggrieved by
this Order may appeal to Crow Wing County District Court by filing an
Application for Review with the Court Administrator within 30 days of the date
of this Order. An appeal does not stay
the effect of this Order.
Any party may submit a written request for
an amendment of these Findings of Fact, Conclusions of Law and Order within 7
days from the date of the mailing of the Order.[48]
However, no request for amendment shall extend the time of appeal from these
Findings of Fact, Conclusions of Law, and Order.
MEMORANDUM
This is a petition for annexation of an
unorganized territory in
Analysis
of Statutory Factors
Annexation of township property by a city
is governed by Minn. Stat. § 414.031.
In arriving at a determination in such a case, sixteen factors are to be
considered. The following discussion
relates these factors to the evidence in this hearing record.
A. Present population and number of
households, past population and projected population growth of the annexing
municipality and subject area and adjacent units of local government.
The population of Baxter is over 7,500. The City has been growing for many years and
is projected to increase to a population as large as 12,000 by 2030. Construction of the Highway 371 bypass has
brought not only traffic, but a leading role in retail, housing and resort
amenities to Baxter, making the growth projections credible.
B. Quantity of land within the subject area
and adjacent units of local government; and natural terrain.
The petition delineates a subject area of 66
acres, almost entirely surrounded by City land.
The land within the subject area, like the land surrounding it, is flat
to gently rolling with sandy soil. Some
of the land is suitable for residential and commercial building; however, there
are significant portions of the larger area containing wetlands. The water table is high, and, combined with
the sandy soil, the risk of groundwater contamination is noteworthy.
C. Degree of continuity of the boundaries
between the annexing municipality and the subject area.
The subject area is contiguous with, and
almost completely surrounded by, the City.
D. Present pattern of physical development,
planning, and intended land uses in the subject area.
The City is developing and growing in a
manner that attempts to incorporate values of sustainability, open space and economic
development. For example, the plan to
build frontage and backage roads and to limit access to Highway 371 is meant to
encourage an environment that is friendly to pedestrians and bicyclists as well
as to making the highway an efficient bypass.
Unless the subject area is annexed, the City will face limitations in
developing
In addition, the City’s development
requires more sewer and water lines, some of which will cross land within the
area of the subject area. The City is
planning for growth based on stepped zoning which will permit land use to
change gradually over a distance, enhancing compatibility of neighboring
uses.
E. The present transportation network and
potential transportation issues.
Highway 371 is a major arterial route in
the area. To best utilize the highway
and still maintain the character of the City, it is important to both limit
access in the form of intersections and build supporting arteries which are
more accessible. This will require
routing some roads through the subject area.
F. Land use controls and planning presently
being utilized in the annexing municipality.
Baxter has a history of utilizing a
Comprehensive Plan and continues to do so. In addition, the City has worked with
G. The impact of the proposed annexation on
the delivery of government services.
The proposed annexation is likely to have
a positive impact on the delivery of government services. Neither the population nor the area of the
subject area is large enough to drain already-existing resources. Annexation will make it more feasible to
expand water and sewer services; and will ease the City’s financial burden in
renovating
H. The implementation of previous annexation
orders.
There are no other previous annexation
orders that impact this matter.
I. Existing or potential environmental
problems.
The environmental issue of most concern is
potential groundwater contamination in Baxter and the surrounding areas. Between the numerous lake and wetlands, the
high water table and the sandy soil, the lakes are at risk from groundwater
contaminants. An up-to-date municipal
sewage system which eliminates the need for private septic systems is one good
method of safeguarding the groundwater in the area.
J. Plans and programs by the annexing
municipality for providing needed and enhanced governmental services to the
subject area.
The subject area will receive both water
and sewer service if the annexation occurs.
K. Analysis of the fiscal impact.
Annexation will have a fairly significant
fiscal impact on the residents of the subject area because area taxes will
increase, in the most costly case, about $618, utilizing 2008 values. In addition, there will be assessments for water
and sewer connections. These residents
have had the opportunity to avail themselves of many City resources such as
parks, libraries and local transportation planning over the years without
paying for them. The fiscal impact on
the City will be positive, both as a result of increased taxes and assessments;
and the increased state payments for the maintenance and construction on
L. Effect on
Both the subject area and Baxter are in
the same school district. No impact on
the district is anticipated due to annexation.
M. Adequacy of town government to deliver
services to the subject area.
The City is well equipped to deliver
services to the subject area. Connection
of water lines to the nearby water main is fairly simply accomplished; and
annexation will make installation of a nearby sewer main affordable for the
City. While the sewer in particular will
take some time, the City is enthusiastic and ready to proceed.
N. Analysis of whether necessary government
services can best be provided through the proposed action or another type of
boundary adjustment.
The City and
O. If only a part of a township is annexed,
the ability of the remainder to continue or the feasibility of it being
incorporated or annexed to a different municipality.
The subject area is not part of an
organized township. Annexation of the
area into the City will not have any impact on the functioning of
P. Information received by Administrative
Law Judge from tour.
A brief tour of the subject area is
sufficient to reinforce the rationale for annexation. The subject area is bordered by Baxter on
almost all sides. Commercial development
is creeping toward the subject area. Big
box retailers, fast food restaurants and gas stations are within walking
distance. The area has already become
urban in nature and the traffic issues require that coordinated planning be
done, as Baxter is attempting to do. Furthermore,
Annexation
Standard
Based upon an analysis of the factors, Minn. Stat. § 414.031 allows annexation
upon a finding;
That the subject area is now, or is about
to become, urban or suburban in character;
That municipal government in the area
proposed for annexation is required to protect the public health, safety, and
welfare; or
That annexation would be in the best
interest of the subject area.
The subject area meets the first and third
of these criteria. The public health
reasons which would support annexation – better ground water protection due to
more comprehensive sewer systems; and better water pressure due to construction
of a water loop – are certainly important goals. There was no evidence that annexation is
required to achieve these goals, so the Administrative Law Judge finds that
that standard is not met.
The subject area has become urban in
character. As the City grows all around
it, the subject area will be surrounded by increasing residential population,
commercial activity and traffic. The
subject area is nearly completely surrounded by a part of the City in which
growth is planned. There is no buffer
zone between the City and the subject area.
All of the evidence points to continued growth in the City. To the extent that the subject area has
maintained a non-urban character up to this point, that is not likely to last
long.
Finally, the subject area would be better
served if it shared in the City’s water and sewer facilities; and if it were
more fully integrated into the life of the City. To permit residents of the subject area to
continue to use City amenities without contributing financially to them; and to
hamper development by maintaining an artificial separation between the City and
the subject area, will foster division and resentment that will benefit neither
the residents of the subject area nor the City itself.
Conclusion
Baxter has clearly engaged in long-term
planning for its growth and development.
It has included community members and the larger
R. R. K.
[1]
[2]
Hearing Exhibit 12 (Ex. 12), City of
[3]
[4] Ex. 13, Proposed Tax Comparisons for Affected Parcels.
[5] Ex. 12, page 4.
[6]
[7]
[8] Ex. 12, pages 4-5.
[9] Factual Information report supplied by Baxter City Officials to the Municipal Boundary Adjustments Office, dated July 22, 2008, page 1.
[10] Ex. 1; Testimony of Trevor Walter.
[11]
[12] Hearing Ex. 3; Test. of T. Walter.
[13] Hearing Ex. 12, page 6.
[14] Test. of T. Walter.
[15] Test. of T. Walter.
[16] Hearing Ex. 12, page 24.
[17] Hearing Ex. 2; Test. of T. Walter.
[18] Test. of T. Walter.
[19]
[20] Test. of T. Walter.
[21]
[22] Ex. 6; Testimony of William Deblon.
[23] Ex. 7; Test. of W. Deblon.
[24] Ex. 8, Test. of W. Deblon.
[25] Test. of W. Deblon.
[26] Test. of T. Walter.
[27] Test. of T. Walter.
[28] Test. of T. Walter; Ex. 3.
[29] Test. of T. Walter; Ex. 4.
[30] Test. of T. Walter; Ex. 5.
[31] Test. of T. Walter.
[32] Test. of T. Walter.
[33] Ex. 13; test. of T. Walter.
[34] Ex. 12, page 1.
[35]
[36]
Ex. 12, test. of
[37] Ex. 9 and Ex. 11, page 2.
[38] Ex. 11, page 3.
[39] Test. of T. Walter; Factual Information report (Factual Information report) supplied by Baxter City Officials to the Municipal Boundary Adjustments Office, dated July 22, 2008, page 5.
[40] Test. of T. Walter; Factual Information Report, page 4.
[41] Factual Information Report, page 4.
[42] Test. of T. Walter; Ex. 5.
[43] Test. of T. Walter, Ex. 4.
[44] Test. of T. Walter.
[45] Test. of T. Walter; Ex. 4 and 5.
[46] Test. of T. Walter.
[47] Test. of W. Deblon.
[48]