OAH 15-6051-16937-BA

 

STATE OF MINNESOTA

OFFICE OF ADMINISTRATIVE HEARINGS

 

FOR THE MUNICIPAL BOUNDARY ADJUSTMENTS UNIT

 

In Re Petition for Incorporation of Columbus Township (I-68)

and

Petition by Forest Lake to Annex Certain Portions of Columbus Township (A-7371)

 

FINDINGS OF FACT,

CONCLUSIONS

AND ORDER

 

The above-entitled matter initially came on for hearing before Christine M. Scotillo, Executive Director, Municipal Boundary Adjustments, on October 5, 2005, at Columbus Town Hall, 16319 Kettle River Boulevard, Forest Lake, Minnesota pursuant to In Re Petition for Incorporation of Columbus Township (I-68).  The hearing was continued to allow for the gathering of additional evidence.

Another hearing was held before Ms. Scotillo, on December 5, 2005, at Forest Lake City Hall, in the Council Chambers, 220 Lake Street North, Forest Lake, Minnesota pursuant to Petition by Forest Lake to Annex Certain Portions of Columbus Township (A-7371).  The hearing was continued to allow for the gathering of additional evidence.

The matters were consolidated, and the hearing on both matters was reconvened before Administrative Law Judge Beverly Jones Heydinger on Monday, April 24, 2006, at Columbus Town Hall, 16319 Kettle River Boulevard, Forest Lake, Minnesota.  The hearing continued four subsequent days and ended on April 28, 2006.  Public testimony was heard on the evening of April 25, 2006, at Columbus Town Hall; about 60 people signed the Hearing Register, and 38 persons offered comments on the record.[1]  At the conclusion of the hearing on April 28, 2006, the parties and the Administrative Law Judge toured Columbus and Forest Lake to view the area.

Following the hearing, the parties submitted written memoranda, reply memoranda, and proposed findings of fact, conclusions of law, and order.  The transcript was received by all parties on May 9, 2006.  The final written reply memorandum was received on May 30, 2006, and the record closed on that date.

John J. Steffenhagen, Esq., and William C. Griffith, Esq., of the firm of Larkin Hoffman Daly & Lindgren, Ltd., 1500 Wells Fargo Plaza, 7900 Xerxes Avenue South, Minneapolis, MN 55431-1194, appeared representing Petitioner Columbus Township (Columbus).

Christopher M. Hood, Esq., and Brandon M. Fitzsimmons, Esq., of the firm Flaherty & Hood, P.A., 525 Park Street, Suite 470, St. Paul, MN 55103, appeared representing Petitioner City of Forest Lake (Forest Lake).

STATEMENT OF THE ISSUES

1.               Whether the Petition for Incorporation of Columbus Township (I-68) be granted or denied based upon the factors set out in Minn. Stat. § 414.02[2]; and

2.               Whether the Petition by Forest Lake to Annex Certain Portions of Columbus Township (A-7371) be granted or denied based upon the factors set out in Minn. Stat. § 414.031.

The Administrative Law Judge concludes that the Petition for Incorporation of Columbus Township (I-68) should be granted.  The Administrative Law Judge further concludes that the Petition by Forest Lake to Annex Certain Portions of Columbus Township (A-7371) should be denied.

Based on the evidence in the hearing record, the Administrative Law Judge makes the following:

FINDINGS OF FACT

Procedural History of this Proceeding

          On August 12, 2005, property owners in Columbus filed a petition with the Minnesota Office of Administrative Hearings - Municipal Boundary Adjustments (“OAH-MBA”) requesting incorporation of all of the Town of Columbus.

1.               Columbus is located in Anoka County, Minnesota.  Its boundaries are legally described as:

Sections 25-36, Township 33 N, Range 22 W

Sections 1-36, Township 32 N, Range 22 W[3]

2.               A small portion of land lies within East Bethel’s boundaries and abuts Coon Lake.[4]

3.               On September 6, 2005, the Executive Director of OAH-MBA set on for hearing on October 5, 2005, the Petition for Incorporation of the Township (I-68) (the “Incorporation Petition”).  Notice of the hearing was published in the Forest Lake Times.

4.               On September 27, 2005, Forest Lake filed a Notice of Appearance with OAH-MBA to appear and participate in the proceedings on the Incorporation Petition.[5]

5.               The hearing on the Incorporation Petition was opened on October 5, 2005, and continued to an indefinite date pending completion of the agency review process and delegation for further evidentiary hearing.

6.               On October 18, 2005, the Director referred the Incorporation Petition to the Administrative Law Division of OAH.

7.               On October 26, 2005, Forest Lake filed a resolution with OAH-MBA petitioning OAH-MBA to annex approximately 655 acres of unincorporated property located in Columbus (the “Annexation Area”).  The Annexation Area is described as follows:

All that part of Sections 13, 24, 25, and 36 in the Township of Columbus, Anoka County, Minnesota, lying easterly of the right of way of Interstate Highway 35 E and Interstate Highway 35.[6]

8.               On November 9, 2005, the Executive Director of OAH-MBA set on for hearing on December 5, 2005, the Petition by Forest Lake to Annex Certain Portions of The Township (A-7371) (the “Annexation Petition”).  Notice of the hearing was published in the Forest Lake Times.

9.               On November 10, 2005, the Director referred the Annexation Petition to the Administrative Law Division of OAH.

10.           On November 10, 2005, the Chief Administrative Law Judge ordered that the proceedings and hearing on the Incorporation Petition and Annexation Petition be consolidated.

11.           On November 29, 2005, Forest Lake filed an amended resolution with OAH-MBA amending the vote by which its City Council adopted the Annexation Petition and incorporating by reference the Annexation Petition.[7]

12.           The Administrative Law Judge conducted prehearing conferences with the parties on December 8, 2005, February 13, 2006, and April 17, 2006.

13.           Columbus and Forest Lake each published a Notice of Reconvened Hearing in the Forest Lake Times on April 6, 2006, and April 13, 2006.[8]

14.           Columbus is bordered by Ham Lake, Linwood Township, Wyoming Township, Forest Lake, and Lino Lakes.  Forest Lake is located in Washington County.  It is bordered by New Scandia Township, May Township, Hugo, Lino Lakes, Columbus, Wyoming Township, and Chisago Lake Township.  Forest Lake abuts the entire eastern boundary of Annexation Area.[9]

15.           The boundaries of Columbus are rectangular and have been in place for nearly 150 years.  The eastern boundary also forms a portion of Anoka County’s eastern boundary.[10]

16.           Both Columbus and Forest Lake are part of the seven-county Twin Cities Metropolitan Area.[11]  Columbus became an “urban township” in 1963; Forest Lake became a city in 1974.[12]

17.           For the purposes of this proceeding, the “I-35 Corridor” is defined as approximately three square miles of land within Columbus on both the east and west sides of Interstate Highway 35, within the existing Municipal Urban Service Area (MUSA). The I-35 Corridor is approximately one mile wide and three miles long.  On the east side of I-35, it includes the Annexation Area, and on the west side of I-35, it includes the strip of land about one-half mile wide running between the freeway and the Rice Creek Chain of Lakes Regional Park Reserve.  The I-35 Corridor is located at the developing edge of the seven-county metropolitan area in Anoka County, and is strategically located for growth and development just north of the intersection of I-35E and I-35W.[13]

18.           The property owners who filed the petition for annexation are generally located in the northeast portion of the I-35 Corridor, east of I-35, and next to the boundary with Forest Lake.[14]


Factors for Incorporation, Minn. Stat. § 414.02, subd. 3, and Annexation, Minn. Stat. § 414.031, subd. 4 (a).

Present population and number of households, past population and projected population growth of the subject area and adjacent units of local government.

Population

19.           The population of the seven-county Twin Cities metropolitan area grew by over 850,000 people between 1970 and 2000.  Most of this growth occurred outward from free standing communities and along major transportation corridors such as Interstate Highway 35 (I-35), Interstate Highway 94, and State Trunk Highways 169 and 61.  Between 2000 and 2030, population of the seven-county Twin Cities metropolitan area is projected to grow by nearly 1 million people.[15]

20.           Washington County grew by about 55,000 people between 1990 and 2000.  Anoka County grew by over 54,000 during that same period.  Between 2000 and 2030, Anoka County’s population is projected to grow from 298,084 to 410,760 (38%), while Washington County’s population is projected to grow from 201,130 to 342,620 (70%).[16]

21.           According to the United States Census Bureau, six of the top 100 fastest growing counties in the United States from 2000 to 2005 are located in and around the Twin Cities Metropolitan Area, including Isanti County (ranked 97th) and Chisago County (ranked 99th).  Chisago and Isanti Counties lie immediately north of Columbus and Forest Lake.[17]

22.           According to the records of the state demographer, Columbus is the 13th most populous of the 1,790 townships located in the State of Minnesota and the fourth most populous in the metropolitan area.  In 2000 its population was greater than 709 of the 853 cities in the State of Minnesota.[18]

23.           Between 1970 and 2000, Columbus’s population grew by 1958 people (98%), and Forest Lake’s population grew by 8,243 people (133%).  In 2004, the estimated population for Columbus was 4,120, exceeding the Metropolitan Council’s 2010 forecast, with 44 people in the Annexation Area and the same or fewer on the west side of I-35 Corridor.[19]  In 2004, Forest Lake’s estimated population was 16,800.[20]

 Population Growth (1970-2004)[21]

 

1970

1980

1990

2000

1970-2000

% Change

1970-2000

2004

(est.)

Columbus Township

1,999

3,232

3,690

3,957

1,958

98%

4,120

Linwood Township

1,004

2,839

3,588

4,668

3,664

365%

 

Wyoming Township

1,262

2,313

2,967

4,379

3,117

247%

 

Ham Lake

3,327

7,832

8,924

12,710

9,383

282%

 

Lino Lakes

3,692

4,966

8,807

16,791

13,099

355%

 

Forest Lake*

6,197

9,927

12,523

14,440

8,243

133%

16,800

Hugo

2,669

3,771

4,417

6,363

3,694

138%

 

Anoka County

154,712

195,998

243,688

298,084

143,372

93%

 

Washington County

83,003

113,571

145,896

201,130

118,127

142%

 

 

 

 

 

 

 

 

 

Twin Cities Metro

1,874,612

1,985,873

2,288,721

2,642,062

767,450

41%

 

*City and Township combined.

24.           Between 2000 and 2030, the Metropolitan Council projects that Columbus’s population will increase by 723 people (18%). Forest Lake is projected to grow by 19,760 people (137%) during that same period.[22]

 Projected Population Growth (2000-2030)[23]

 

 

2000

2010

2020

2030

Change

2000-2030

% Change

2000-2030

Columbus Township

3,957

4,000

4,240

4,680

723

18%

Linwood Township

4,668

4,920

5,000

5,400

732

16%

Wyoming Township

4,379

5,252

6,320

7,265

2,886

66%

Ham Lake

12,710

15,200

15,200

15,200

2,490

20%

Lino Lakes

16,791

22,500

26,300

30,700

13,909

83%

Forest Lake

14,440

21,700

27,800

34,200

19,760

137%

Hugo

6,363

19,100

29,000

40,000

33,637

529%

Anoka County

298,084

355,170

393,010

410,760

112,676

37%

Washington County

201,130

244,732

296,693

342,620

141,490

70%

 

 

 

 

 

 

 

Twin Cities Metro

2,642,062

3,028,102

3,376,723

3,608,000

3,608,000

36%

 

25.           In its September 2005 system statement, the Metropolitan Council revised Forest Lake’s projected population, household, sewered development, and wastewater flow projections because of the City’s increased rate of growth and plans to increase orderly development.[24]

26.           Forest Lake is projected to grow much faster than Columbus, largely because of the natural conditions in Columbus that inhibit development, and the differences in the Comprehensive Plan for each of them, as reflected in the Metropolitan Council’s designation of Forest Lake as a Rural Developing Community and Columbus as a Diversified Rural Community.[25]

Households

27.           The Metropolitan Council projects that more than 470,000 households will be added within the seven-county Metropolitan Area between 2000 and 2030.[26]

28.           Anoka and Washington Counties accounted for nearly 30% of the building permits issued in the metropolitan area for 2004.  The Metropolitan Council projects that between 2000 and 2030, the number of households in Anoka County is projected to grow from 106,428 to 163,610 (about 54%), while the number of households in Washington County is projected to grow from 71,462 to 138,117 (about 93%).[27]

29.           From 1990 to 2000, the number of households in Columbus grew by 199 (18%).  During the same time, Forest Lake’s number of households grew by 1,009 (23%).  Between 2001 and 2005, 89 new homes were built in Columbus and 1,491 new residential units were built in Forest Lake.  In 2004, there were an estimated 1,388 households in Columbus and 6,526 households in Forest Lake.[28]

30.           Between 2000 and 2030, Columbus is projected to add 422 more homes (32%), and Forest Lake is projected to add 8,267 more homes (152%). The Metropolitan Council indicates that the projected household growth for Columbus’s “Developing” area along the I-35 corridor, which includes the Annexation Area, will occur at urban densities.[29]

Household Growth (1990-2000)[30]

 

1990

2000

Change 1990-2000

% Change 1990-2000

Columbus Township

1,129

1,328

199

18%

Linwood Township

1,146

1,578

432

38%

Wyoming Township

934

1,438

504

54%

Ham Lake

2,720

4,139

1,419

52%

Lino Lakes

2,603

4,857

2,254

87%

Forest Lake*

4,424

5,433

1,009

23%

Hugo

1,416

2,125

709

50%

Anoka County

82,437

106,428

23,991

 

Twin Cities Metro

875,504

1,021,456

145,952

 

* City and Township combined.

 


 

Projected Household Growth (2000-2030)[31]

 

 

2000

2010

2020

2030

Change 2000-2030

% Change

2000-2030

Columbus Township

1,328

1,450

1,600

1,750

422

32%

Linwood Township

1,578

1,820

1,950

2,090

512

32%

Wyoming Township

1,438

N/A

N/A

N/A

N/A

N/A

Ham Lake

4,139

5,100

5,300

5,500

1,361

33%

Lino Lakes

4,857

7,100

8,600

10,100

5,243

108%

Forest Lake

5,433

8,500

11,100

13,700

8,267

152%

Hugo

2,125

7,200

11,100

15,600

13,475

634%

Anoka County

106,428

134,980

154,880

163,830

57,402

54%

Washington County

71,462

93,949

116,834

138,117

66,655

93%

Twin Cities Metro

1,021,456

1,213,800

1,386,200

1,513,100

491,644

48%

 

31.           The I-35 Corridor, along with areas south and east of County State Aid Highway (CSAH) 23 (Lake Drive) in Columbus, is located in Traffic Analysis Zone (TAZ) 18 as designated by state and local transportation officials.  As of 2000, there were 306 jobs available in TAZ 18.  By 2030, there are expected to be 650 jobs available in TAZ 18, over a 112% increase in available jobs.  The remainder of Columbus is predicted to have an increase in jobs of 174 by 2030.  Forest Lake is predicted to have an increase of 4,041 jobs between 2000 and 2030.[32]

Classification by the Metropolitan Council

32.           Columbus is classified by the Metropolitan Council as a Diversified Rural Community, with characteristics of a Developing Community.  In general, Diversified Rural Communities have large-lot residential development, development of parks, open spaces, green corridor connections, and limited development that serves the region.  The Metropolitan Council would anticipate Columbus, as a Developing Community, to develop along the I-35 Corridor.[33]  The area in Columbus west of the I-35 Corridor is designated by the Metropolitan Council as “Permanent Rural.”

33.           Sixteen cities within the Twin Cities Metropolitan Area are, like Columbus, designed as diversified rural by the Metropolitan Council.[34]  Examples include East Bethel, Oak Grove, Greenfield, Independence, Afton, Dellwood and Lakeland.[35] Columbus’s 2000 population is greater than ten of those cities.[36]  An additional 13 cities within the Twin Cities Metropolitan Area are classified dually, diversified rural and urban or partially urban.[37]

34.           The Columbus Comprehensive Plan was approved by the Metropolitan Council in 1999, including the development of the I-35 Corridor for commercial/industrial use.  The Plan was approved, along with designation of the I-35 Corridor as part of the 2010 MUSA, eligible for regional sewer service.[38]  Columbus is expected to submit a comprehensive plan update by 2008.[39] 

35.           Forest Lake is classified by the Metropolitan Council as a Developing Community, with some area designated as Diversified Rural for development after 2030.[40]

36.           The Forest Lake Comprehensive Plan was reviewed initially in March 2000.  Following annexation of Forest Lake Township in 2000, a combined Comprehensive Plan was submitted in May 2004.  The accompanying map showed existing land use, with the area adjacent to and east of the proposed Annexation Area as either “conservancy,” with a density of 1 dwelling per 20 acres or “rural residential,” with a density of 1 dwelling per 5 acres.[41]  Forest Lake’s 2004 Comprehensive Plan and 2005 Amendment do not address either portion of the I-35 Corridor, or anticipate extension of urban services to the adjoining portions of Forest Lake.  The Metropolitan Council anticipates that Forest Lake will submit a new plan by 2008.[42]  The area in Forest Lake immediately to the east of the northern half of the I-35 Corridor is largely “Permanent Rural,” with a small area of established development.  East of the southern half of the I-35 Corridor is designated as part of the “Urban Reserve,” for development after 2040.[43]

37.           At the present time, development is beginning in the I-35 Corridor.  There is little development immediately to the west of the I-35 Corridor in Columbus, in part because of the intervening Rice Creek Chain of Lakes, a protected area, and, similarly, little development immediately east of the Corridor because of an intervening wetland on the western boundary of Forest Lake.[44]

38.           The map of the MUSA staging areas reflects that much of the surrounding area, including large portions of Columbus and eastern Forest Lake, will remain Permanent Rural through 2040 and beyond, in part because of its natural environment and also to preserve areas for future growth.[45]

39.           Forty-seven townships remain in the seven county metropolitan area.  Three townships remain in Anoka County:  Columbus, Burns and Linwood.  Columbus has the fourth largest population of townships in the metropolitan area.  Only three metropolitan area townships reported more total expenditures in 2004.[46]

40.           As a result of the development throughout the surrounding area, including Forest Lake, Columbus is suburban in character, and the I-35 Corridor is in the process of developing for urban commercial/industrial use.  Development of sewer and water in an orderly manner is required to assure the health, safety and welfare of the surrounding area.

Quantity of land within the subject area; the natural terrain including recognizable physical features, general topography, major watersheds, soil conditions and such natural features as rivers, lakes and major bluffs.

41.           Columbus contains 31,000 acres, 48 sections of land.[47]  The natural terrain in Columbus is generally flat to rolling and predominant natural features include wetlands and surface waters, interspersed with upland wooded areas.  About two-thirds of the land in Columbus (over 20,000 acres) is covered with wetlands, lakes and adjacent floodplain areas.  Little of this land is likely to be developed.  The remaining land in Columbus, about one-third of the area, is suitable for commercial, institutional, residential, and agricultural land uses.[48]

42.           The Carlos Avery Wildlife Management Area is approximately 23,000 acres; 9,733 acres are in Columbus.  It is the largest natural recreational area in the Twin Cities Metropolitan Area and offers bird watching, wildlife viewing, hiking, cross-country skiing, snow shoeing, fishing, and hunting.[49]  As population densities increase in the surrounding area, the fragility and importance of the area as a natural resource also increase.  The Metropolitan Council intends to work with Columbus and Anoka County to conserve, protect and enhance this area.[50]

43.           Columbus has worked closely with the Minnesota Department of Natural Resources (DNR) for several decades to manage and protect the natural resources of the community, including portions of the Carlos Avery Wildlife Management Area, Lamprey Pass Wildlife Management Area, the Rice Creek Chain of Lakes Regional Park Reserve, and the Houle Wildlife Management Area.[51]  Some of the significant natural resource areas are outside of the presently protected areas but adjacent to them.  Crossways Lake, Howard Lake, Little Coon Lake and portions of Higgins Lake, Mud Lake, Coon Lake and Rondeau Lake are located in Columbus.[52]

44.           There are three watersheds in Columbus:  Rice Creek, Sunrise River and Coon Creek.  Very wet organic soils, fine sand and little upland occupy much of the western half of Columbus.  Most of the existing residential development is located in the eastern half of Columbus and has sandy, well-drained soils, and some forested areas and wetlands.  The soils in the I-35 Corridor range from well-drained sandy soils to poorly-drained loamy soils, generally surrounded by larger wetlands.[53]

45.           Forest Lake has 22,711 acres, including 3,000 acres of wetlands, lakes and floodplain.[54]

46.           There is a portion of the Lamprey Pass Wildlife Management Area on the west side of Forest Lake and the Hardwood Creek Wildlife Management Area in the southeast.  The predominant physical feature is Forest Lake (2,250 acres), and nearby Sylvan Lake. Clear Lake and a portion of Mud Lake are located on the western side of the city, near the Columbus border.[55]

47.           There are six soil types in Forest Lake.  Much of the soil is wet on a high water table or percolates slowly.  Forest Lake lies within two watersheds, Forest Lake and Rice Creek.  Part of the city, particularly near the lakes and Hardwood Creek, is within the 100-year floodplain.[56]

Present pattern of physical development, planning, and intended land uses in the subject area including residential, industrial, commercial, agricultural, and institutional land uses and the impact of the proposed action on those uses.

48.           The current land use designations in the I-35 Corridor and the adjoining area of Forest Lake are shown in Exhibit 1 at 37, Figure 11.  The figure shows the portions of the I-35 Corridor in Columbus designated for commercial/industrial development and the adjacent wetlands.  It also shows Forest Lake’s plans for development to the east of its border with Columbus.

49.           Approximately 37 percent of the acreage within Columbus is publicly owned, largely as parks and state wildlife management areas, including the Carlos Avery Wildlife Management Area which occupies 31% of Columbus.[57]  Approximately another third is wetlands, lakes and adjacent floodplain.[58]

50.           About 8,580 acres, 28%, of Columbus is developable.  Although scattered throughout the township, the developable acres are predominantly located through the central area, along CSAH 23 (Lake Drive), Kettle River Boulevard, and in the I-35 Corridor.[59]   Development is limited by the natural terrain. The historical development pattern occurred in the central third of Columbus, and most residential development exists in this area, along three major roads, Lake Drive, Kettle River Boulevard and CSAH 18.  These residences are served by private sewage systems, and residential development is limited to five acres.[60]

51.           Because of its natural limitations and the necessity of preserving the natural resources, land in Columbus outside of the I-35 Corridor is not expected to be developed at urban levels.  The Metropolitan Council does not anticipate that sewer service will be installed outside of the corridor, and has classified the rest of the township as permanent rural.[61]  Neither Columbus nor Forest Lake anticipate that the portions of Columbus outside of the I-35 Corridor, and outside of the current MUSA line, will be developed at urban services in the foreseeable future.

52.           Commercial and light industrial land uses have developed in Columbus along Lake Drive north of the border with Lino Lakes, running through the center, upland corridor of Columbus.  The corridor along Lake Drive ranges in width from about one-half mile to less than one-quarter mile.[62]  There are about 200 acres of land available for commercial and light industrial development within that corridor.  Businesses along Lake Drive include several that require extensive storage for products, materials or equipment, with relatively few employees.  Such businesses do not typically require or request sewer or water service.[63]

53.           During the mid to late 1990’s, the Columbus Comprehensive Plan was updated to meet the Metropolitan Council’s mandatory planning requirements, and it conforms with the Council’s Regional Blueprint and Regional Growth Strategy.[64]

54.           Columbus’s Comprehensive Plan established the I-35 Corridor as a public utility district, and obtained designation of the area as part of the Municipal Urban Service Area (MUSA).  MUSA designation allowed Columbus to develop sanitary sewer access to the I-35 Corridor and to pursue an urban level of development within the corridor.[65]  Columbus is one of only three townships within the MUSA to operate public utilities.[66]

55.           During the development of Columbus’s Comprehensive Plan and thereafter, Columbus spent several years developing detailed engineering plans to stage the installation of municipal utilities and a detailed land use plan, including zoning classifications and regulations, to manage growth at urban levels within the I-35 Corridor.[67]

56.           The I-35 Corridor contains approximately 800 acres that can be developed at urban densities.  Barely half of that land is vacant and available for immediate development; about half of the developable acres are located in the Annexation Area.[68]  There are approximately 28 single-family homes or farmsteads in the I-35 Corridor, about equally divided between the two sides of the interstate.[69]

57.           Development is spreading up I-35 into the area of Columbus and Forest Lake as population grows in the area.  Development at an urban level of service is consistent with orderly and contiguous development because of the exposure and transportation access provided by the interstate highway and the existing interstate highway interchange at CSAH 23.[70]  Because of its proximity to an existing interstate exchange, the I-35 Corridor is well-suited to commercial and industrial development.  It is only a mile in width, bisected by the interstate.  Noise generated by the interstate makes the area unattractive for residential development.[71]

58.           Since 2000, several major developments have occurred in the I-35 Corridor.  On the west side, Gander Mountain developed a 100,000 square foot outdoor recreation retail facility, the necessary approval has been given and development begun for a harness track on approximately 160 acres, Coates Trailer Sales developed a site for retail sales and repair of recreational vehicles and trailers, and Crystal-Pierz Marine acquired a site to sell boats and equipment.  On the east side, Ziegler Caterpillar, LLC, has acquired an 80-acre site to construct a major facility for the sales, rental and repair of construction equipment, to be constructed in 2006, and Forest Lake Arctic Cat and Trailerland operate commercial sales and repair businesses.[72]

59.           The oldest part of the City of Forest Lake includes a commercial business district and residential neighborhoods along the lakeshore and near the original downtown.  Commercial development is concentrated along Highway 61 (Lake Street) north from Trunk Highway 97 (Scandia Trail) to just north of Broadway Avenue, and east of the intersection of Highway 61 and Highway 8.  Commercial development is also concentrated around the I-35 interchange with Broadway.  The commercial land use near I-35 includes auto dealerships and large retail stores.  Light industrial use has developed along I-35 south of the Broadway interchange.[73]

60.           The northwestern portion of Forest Lake is developing rapidly, and future growth is likely to extend toward the Columbus border north of the I-35 Corridor, along Trunk Highway 2.[74]  Because of its rapid growth, the Metropolitan Council considers Forest Lake to be a freestanding growth area which is expected to grow outward, particularly toward the south, in an orderly fashion.[75]

61.           Although there are areas of dense development, much of Forest Lake is still undeveloped or at low densities.  Agriculture and wetlands dominate the southern half of Forest Lake, and the northeastern portion.  Scattered throughout the agricultural area is low-density, residential development served by individual sewage treatment systems.  In its 2004 Comprehensive Plan, Forest Lake reported that 59% of its land was classified as agricultural or vacant.[76]

62.           A thin band of wetlands separates the northern portion of the I-35 Corridor from residential development in Forest Lake.  It includes the 78-acre Houle Wildlife Management Area, and a portion of the Lamprey Pass Wildlife Management Area which extends into the I-35 Corridor.  Forest Lake has designated this land along the northern two thirds of the Annexation Area as “conservancy,” with no scheduled development[77] because of its environmental sensitivity.  A portion of the land to the east of the northern half of the I-35 Corridor is included in the existing MUSA or 2020 MUSA.[78]

63.           Approximately 10,450 acres, or 46%, of Forest Lake is developable with large contiguous areas in the southwest quadrant reserved for development as part of the 2040 Urban Reserve.[79]  Most of this land was part of Forest Lake Township prior to its annexation in 2000 into the City of Forest Lake.

64.           Since 2000, development has extended towards the south and west of the original city.  Planning is underway for a large new development, Headwaters, in the former township, adjacent to Highway 61 and extending west toward Columbus.[80]

65.           Forest Lake has worked with Washington County to develop a master plan for growth in the southwestern portion.  The Southwest Development Area Alternative Urban Areawide Review (AUAR) was completed in September 2005, the City Council approved an amendment to Forest Lake’s Comprehensive Plan on February 6, 2006, and that amendment is subject to the review and approval of the Metropolitan Council.  The western edge of the area included in the Comprehensive Plan amendment abuts a small section of the I-35 Corridor.  However, that area is planned for parks and recreation, and not for residential, commercial or industrial development.  The effect of the plan is to reallocate the areas designated for parks and recreation and relocate the area designated as public/industrial.  It does not appear to altar the timing of development south of the midpoint between 200th Street North and 190th Street North.[81]  The plan amendment does not extend utilities into the area adjoining the southern portion of the I-35 Corridor.[82]

66.           The Southwest Development Area AUAR states:  “Planned commercial/industrial development in Columbus Township would be adjacent to conservancy and park areas in the development scenarios.  These open space and recreational areas will provide a buffer from the commercial/industrial development in Columbus Township to planned residential areas in the AUAR area.”[83]

67.           In its 2004 Comprehensive Plan, Forest Lake compared land use trends from 2000 to 2020, and projected that in 2020 it would have an increase from 5.8% to 16.1% in Rural Residential Land, a decrease from 59% to 12.6% in Agriculture/Vacant, an increase in Urban Residential (including Multiple Family and Mobile Home) from 9.3% to 21.3%, and an increase in the Commercial/Industrial land use from 2.4% to 7.4%.  Forest Lake also projected that the increased Conservancy land and most of the 2,786 acres designated for Future Urban Residential would remain agriculture/open space until 2020 and beyond.[84]

68.           In 2005, Forest Lake amended its Sewer Policy Plan, revising the acres to be served and projected flowage.  However, this amendment did not project utility staging into the area immediately adjacent to the I-35 Corridor.[85]

69.           Forest Lake will submit an amendment to its Comprehensive Plan in 2008, requesting an extension of the MUSA line south of 190th Street, but leaving the southern portion of the City that adjoins the Annexation Area part of the 2040 urban reserve.[86]

The present transportation network and potential transportation issues, including proposed highway development.

70.           CSAH 23 (Lake Drive) runs through the center of Columbus to the I-35 interchange and becomes Trunk Highway (TH) 97 going east into Forest Lake.  CSAH 23 also connects with County Road 62 (Kettle River Boulevard), which runs north to connect with CSAH 18, which in turn becomes CSAH 2 (Broadway Avenue).  Broadway Avenue intersects with I-35 and is heavily developed as it runs east into the downtown area of Forest Lake.  CSAH 19 also connects CSAH 23 and CSAH 18 in the center of Columbus.  CSAH 21 (West Freeway Drive) serves as a frontage road along the west side of I-35 within the I-35 Corridor. The I-35 interchange with CSAH 23 and TH 97 is at the northern border of the I-35 Corridor.  I-35W and I-35E merge within the Corridor, but there is no interchange at that point.  Because of extensive public waters and wetlands, it is unlikely that major new roadway corridors will be developed in Columbus.[87]

71.           At the present time, the east side of the I-35 Corridor is served by Hornsby Street which connects at the north with TH 97 and serves as frontage road for the northern part of the eastern portion of the corridor, south to 145th Avenue.[88]

72.           I-35 is classified as a principal arterial.  Five county roads serve Columbus.  Three are classified as minor arterials (CSAH 19, CSAH 18, CSAH 23) and two are classified as county collectors (County Road 62 and CSAH 21).[89]

73.           For several years, Columbus staff has fully participated in area highway corridor studies, including analysis of current highway use, future development and potential improvements.[90]  In particular, Columbus staff has participated in discussion of improvements to the I-35 interchange and frontage roads, including the CSAH 21 intersection with CSAH 23 west of the I-35 interchange,[91] relocation of the current park-and-ride facility, and the redesign of the Hornsby Street intersection with TH 97, just east of the I-35 interchange.  Staff has also worked with other cities to review CSAH 14 and the minor arterial network to reduce pressure on the interstate system, and to plan improvements to I-35 between I-694 and Hinckley.[92]  Columbus has retained a professional planner and engineer to assist with its transportation planning,[93] and assembled updated traffic information to develop the Harness Race Track Environmental Assessment Worksheet.[94]

74.           Two principal arterial roads serving Forest Lake are I-35 and U.S. Highway 8.  Minor arterial roads include U.S. Highway 61 and TH 97.  Highway 61 runs parallel to I-35, and TH 97 and U.S. Highway 8 run east and west, intersecting with both Highway 61 and I-35.  Other minor arterials include CSAH 2 (West Broadway), County Highway 83 (SW 11th Avenue) from I-35 to U.S. Highway 61, CSAH 34 (SE 11th Avenue), and three additional segments.[95]  In its 2004 Comprehensive Plan, Forest Lake did not project development of any additional minor arterial roads.[96]

75.           Columbus and Forest Lake participated with Anoka County, Washington County, the Minnesota Department of Transportation (MnDOT), Metropolitan Council and the Town of Scandia to develop a detailed plan for improvements to TH 97 and portions of parallel east-west roadways.[97]  Columbus is working with MnDOT to redesign the Hornsby Street intersection with Trunk Highway 97, near the east I-35 interchange ramps.[98]

76.           Forest Lake and MnDOT own an airport with a single 2,725-foot turf runway.  At the present time, take-offs and landings are visual, and there are no runway lights.  Forest Lake has plans to improve the airport and the adjoining area, but it is not currently designated as one of the “reliever airports” to the Minneapolis-St. Paul International Airport.[99]

Land use controls and planning presently being utilized in the subject area, including comprehensive plans, policies of the Metropolitan Council; and whether there are inconsistencies between proposed development and existing land controls.

77.           Both Columbus and Forest Lake have Comprehensive Plans, submitted to and approved by the Metropolitan Council.[100]  Both intend to submit revised plans by 2008.[101]

78.           In 1963, seven townships in Anoka County, including Columbus, began to exercise urban town powers pursuant to Minn. Stat. § 368.01.  Among those powers are the ability to establish and maintain sewers and waterworks, the power of eminent domain, and ability to establish a fire department.  Four of the seven townships have subsequently incorporated into cities.[102]

79.           Anoka County controls shoreland floodplain areas; Columbus is responsible for platting, building permits and inspections, conditional use permits, interim use permits and administrative services.  Incorporation would eliminate some overlap with the services provided by Anoka County.[103]  In the past five years, Columbus has updated its Zoning and Subdivision Regulations.[104]

80.           The current Columbus Comprehensive Plan was effective in 1999 and included the establishment of a public utility district within the I-35 Corridor, with MUSA designation.[105]  Columbus entered into a Joint Powers Agreement with what was at that time the Town of Forest Lake to allow sanitary sewer access from Columbus through the Town of Forest Lake to the Metropolitan Interceptor.  Thereafter, Columbus developed engineering plans to establish and stage municipal utilities, a detailed land use plan and zoning classifications and regulations to allow urban level of development within the I-35 Corridor.[106]  The new zoning regulations allow existing businesses to be expanded or modified and access public utilities as the utilities become available.[107]  Columbus also has an ordinance governing its sewer and water service.[108]

81.           Forest Lake has zoning ordinances that address six types of residential districts.  It updated its subdivision ordinances in 2000, and is attempting to develop one subdivision ordinance, combining the City’s ordinance with the ordinance enacted by the Township of Forest Lake, prior to its annexation.[109]  Because of its higher level of development, Forest Lake has more types of ordinances that could be applied within the I-35 Corridor.  However, Columbus has Light Industrial, Commercial Retail and Commercial/Showroom zoning regulations in place that can be applied within the I-35 Corridor, with the small portion in the Corridor that is within the Lamprey Pass Wildlife Management Area zoned for Rural Residential.[110]

82.           Columbus has conducted its affairs in a manner similar to a city for several years and has a professional staff familiar with and competent to administer city functions.[111]

83.           Columbus has developed its plans and development controls with the specific purpose of managing development in the I-35 Corridor.  Development of the corridor is consistent with its plans.  Forest Lake has the necessary zoning and development tools to handle development in the I-35 Corridor, but it has not included development of that area in its planning prior to receiving the Annexation Petition from a group of landowners.

Existing levels of governmental services being provided to the subject area, including water and sewer service, fire rating and protection, law enforcement, street improvements and maintenance, administrative services, and recreational facilities and the impact of the proposed action on the delivery of the services.

Sewer and Water

84.           Because of its terrain and sparse level of development, all of Columbus outside of the I-35 Corridor is served by Individual Sewage Treatment Systems (ISTS), and will be for the foreseeable future.  Columbus has adopted the rules promulgated by the Minnesota Pollution Control Agency that govern ISTS, and has supplemented the rules with additional requirements.[112]

85.           Columbus employs a full-time building official who is certified to inspect and review the design of septic systems and to inspect plumbing connections to the municipal sewer and water system.[113]

86.           In about 1996, in preparation for submission of its Comprehensive Plan to the Metropolitan Council, Columbus began to research and plan for development of the I-35 Corridor.

87.           In 1999, the Metropolitan Council approved sewer service in the I-35 Corridor, as part of its approval of the Columbus Comprehensive Plan, conditioned upon entering into a Joint Powers Agreement with the Town of Forest Lake (now part of the City of Forest Lake) to connect to the interceptor sewer located one and one-quarter mile east of the Columbus/Forest Lake boundary.  A Joint Powers Agreement was signed in 2000.[114]

88.           Columbus retained engineers and developed proposals to stage installation of sewer infrastructure in the I-35 Corridor; both sides of the corridor were planned as one unit.[115]  In the past five years, Columbus has invested heavily in the design and early phases of construction of a sewer and water system for the I-35 Corridor.  Its Board of Supervisors conducted public hearings and hired experts[116] to evaluate the feasibility, financing and implementation of public utilities in that portion of the township.

89.           Columbus received the “Final Report:  Sewer Cost Feasibility Study for Sanitary Sewer Service Within the I-35 Corridor” in July 2000.[117]

90.           Columbus and Forest Lake cooperated on two projects.  The first project was completed in 2000 and extended a shared-use gravity sanitary sewer from the interceptor to Fenway Avenue.  The second project extended a separate forcemain in 202nd Street from Fenway Avenue to Enfield Avenue.  Both of these projects are within Forest Lake.

91.           In 2004, Columbus began the last portion of the sewer project needed to serve the I-35 Corridor.  A main pumping station was installed in Columbus on Hornsby Street on the east side of the I-35 Corridor and along a forcemain to the intersection of Enfield Avenue and 202nd Street in Forest Lake.  The pumping station and forcemain will collect and pump 100% of the sewage generated in the I-35 Corridor to the metropolitan interceptor.  This system became fully operational in 2005 at a cost of $1,315,475, assessed proportionally across all buildable property in the I-35 Corridor.[118]

92.           Upon request, properties on the west side of the I-35 Corridor have been connected to the sanitary sewer system via pipes extended west from the main pump station, under I-35, and south along Freeway Drive, and assessed proportionally for the extensions and connection.[119]  Exhibit 88 depicts the existing sewer system and proposed extensions within the I-35 Corridor.  At the present time, none of the property owners in the Annexation Area have requested hook-up to the sewer.[120]  Columbus anticipates that sewer service will be expanded throughout the I-35 Corridor in stages, through 2015.[121]

93.           Forest Lake conceded that the sewer infrastructure in the I-35 Corridor is adequate, and that it would maintain it if annexation were granted.[122]

94.           Columbus assessed the trunk sewer cost at $1,556 per buildable acre and the costs for direct connection in the southwest portion of the I-35 Corridor were assessed at $5,462 per buildable acre.[123]

95.           Columbus has a public works supervisor who holds a Class D wastewater license to operate the system of gravity sewers and pumping station.  He is working on his Class C operator’s license, and other public works staff are also being trained to obtain necessary licensure.[124]

96.           At the present time, all of Columbus is served by individual water wells.  Properties outside of the I-35 Corridor will continue to rely on individual wells in the future.[125]

97.           In 2001, Columbus asked Forest Lake to participate in discussion about the development of a municipal water system, as contemplated by the joint powers agreement.  Forest Lake acknowledged the request but did not pursue discussion.[126]  Its engineers reviewed Forest Lake’s capacity to provide water service and concluded that the city would need to construct a new water treatment plant to provide service to Columbus at that time, which the city did not choose to do.[127]

98.           In 2003, Columbus approached Forest Lake about providing temporary water service to the west side of the I-35 Corridor while Columbus studied development of a water system, but Forest Lake denied Columbus’s request because it did not want to supply water on a short-term basis.[128]  At that point, Columbus retained an engineering firm to conduct a water feasibility study, which was completed in September 2003.[129]

99.           The water system was designed to serve both sides of the I-35 Corridor, with two interconnected loops.[130]

100.       Columbus conducted public hearings concerning the establishment of a municipal water system in January 2004,[131] and then started the process of locating a site for and constructing a test well.[132]  On June 23, 2004, Columbus received a petition from property owners along West Freeway Drive for full water service.  The Town Board ordered an engineering report and held another public hearing.[133]  Because of the apparent strong public support, Columbus moved ahead with plans to install a municipal well and pumphouse.

101.       Prior to incurring the cost for the land purchase and construction of the well, Columbus contacted Forest Lake again to discuss the possibility of operating a joint water supply.  However, on October 14, 2005, Forest Lake declined to pursue joint development because the Columbus incorporation petition was pending.[134]  Columbus moved forward with its plan to purchase land and contract for a well.

102.       The costs of the initial land purchase, well and pumphouse system, which is estimated to be $1,067,500, will be assessed proportionally across all buildable property in the I-35 Corridor, in the same manner as the sanitary sewer assessment.  Additional wells, elevated tanks and a treatment tank will be built as the I-35 Corridor develops, at an estimated cost of $4,385,00, to be assessed as a connection charge payable as new users connect.  Similarly, watermains that provide direct service to the property will be installed as petitioned, and assessed to the benefiting properties at a cost of $4,381 per buildable acre.  The total charges for installed service are $11,021 per buildable acre.[135]

103.       At the time of the hearing, the first water well was under construction and negotiations were underway for acquisition of property to install a second well and additional facilities, and approximately one and one quarter miles of watermain had been installed.[136]  The water system is expected to become operational by the end of 2006.  Columbus will contract with a licensed water system operator until the public works supervisor obtains the necessary water operator’s license.[137]  Although Forest Lake’s expert questioned the water well location, he did not believe that the Columbus water system presented any public health, safety or welfare issues.[138]

104.       Columbus has completed a Comprehensive Water Management Plan and has contracted with the Rice Creek Watershed District to prepare the Comprehensive Wetland portion of its Surface Water Plan.  It is estimated that the Watershed District will complete the Wetland portion in 2006, and that Columbus will complete the Surface Water Plan thereafter.  Columbus has allocated $19,000 to begin wetland monitoring.  Development in Columbus is subject to review by the respective watershed district.[139]

105.       Forest Lake has a developed water system that serves most of its residential neighborhoods. About 80 percent of Forest Lake residents have sewer service and 60 to 70 percent are connected to its water system.[140]  Forest Lake’s municipal water infrastructure comes within 1200 feet of the Annexation Area near its north end.[141]

106.       Forest Lake’s 2004 Comprehensive Plan included utility staging.  At that time, Forest Lake projected that utilities would be extended to an area extending south from 200th Street North about halfway to 190th Street North, toward Forest Lake’s western border, but stopping at the wetland to the east of the I-35 Corridor.  It included no plan to extend utilities to the Columbus border or to the I-35 Corridor.[142]  The Southwest Area AUAR is consistent with this plan.[143]

107.       Although Forest Lake recently amended its Comprehensive Plan, it did not propose to deliver water to the Annexation Area or the western portion of the I-35 Corridor, or to bring its utilities up to a point where the utilities could connect to the Columbus utilities.[144]  The Forest Lake City Council did not receive engineering reports concerning delivery of water to the Annexation Area prior to its vote to pursue annexation.[145]

108.       For the purposes of this proceeding, Forest Lake contracted for an engineering report that included a plan to provide water and sewer service to the Annexation Area, but did not include a plan for providing water and sewer service to the western portion of the I-35 Corridor.  Forest Lake would extend sewer service to the northern end of the Annexation Area as development occurs, connecting to the existing infrastructure installed by Columbus.[146]  Forest Lake foresees future development that could extend to the southern portion of the Annexation Area from the east.  At two points, the proposed extensions would stop at the east side of the Annexation Area because of the presence of wetlands.  The two southernmost extensions toward the Annexation Area would appear to be years away since the proposed trunk sewers would cross land for which there are no development plans.[147]

109.       The proposed lines south of 145th Avenue NE cannot be constructed until Forest Lake obtains an approved amendment to its Comprehensive Plan from the Metropolitan Council.  In order to reach the I-35 Corridor at this time, the amended plan would require “leap-frogging” over an area that is not currently planned for development and not currently within the MUSA.[148]

110.       Forest Lake relies on area charges to properties as they develop to cover its investment in infrastructure.  In Columbus more of the area-wide charges are assessed when the infrastructure is developed, regardless of when the property is connected.  Additional charges are tied to connection. [149]

111.       For the purpose of this proceeding, Forest Lake has proposed an extension of its water system to serve the Annexation Area, extending along TH 97 and south down Hornsby Street.  It has no plan to serve the western portion of the I-35 Corridor.[150]

112.       The parties disputed the relative costs per buildable acre in Columbus and Forest Lake for sewer and water, in part because the method of assessing and assigning the costs differ.[151]  Initially some of the property owners who petitioned for annexation to Forest Lake were mistaken about the costs of obtaining water from Forest Lake.  They later learned of the error but most of them continued to seek annexation, in part because they preferred Forest Lake’s method of allocating the water development costs.[152]

Fire Rating and Protection

113.       Fire protection in Columbus and Forest Lake and a portion of Wyoming Township is provided under the terms of a Fire Protection Agreement, entered into by those three governmental units, and operated by the “Forest Lake Area Joint Fire Board,” with representation from the three communities. There are two fire stations – one in Columbus and one in Forest Lake.  Forest Lake is responsible for the daily administration and management of the Fire Department’s approved budget, but ownership of equipment and allocation of costs is proportional to the members.  The allocation is determined by the market valuation that the property of each member bears to the total market valuation of all three.[153]  Neither Columbus nor Forest Lake anticipates that incorporation or annexation would affect the terms of the Fire Protection Agreement.[154]

114.       At the present time, the Insurance Service Organization (ISO) fire rating in Columbus and in the portions of Forest Lake not served by municipal fire hydrants is 7 or 10, depending on the distance of the property from the nearest fire station.  The fire rating in Forest Lake for areas served by municipal fire hydrants is 5.  It is anticipated that the fire rating in the I-35 Corridor will improve once a municipal water system is installed, whether operated by Forest Lake or Columbus.  The ISO rating is used for insurance underwriting and to calculate premiums.  Lower numbers indicate better fire protection.[155]

Law enforcement

115.       Columbus currently contracts with the Anoka County Sheriff for patrol coverage for eight hours a day, five days a week, generally from 3 p.m. to 11 p.m., from a base in Columbus, at a cost of $150,000 per year.  The Sheriff also provides a police liaison officer to the Columbus elementary schools and additional services when school is not is session.  At other times the Sheriff’s Department responds to calls, investigates crimes and patrols the area.  The Sheriff’s Department has 119 sworn officers, including 66 sworn officers in its patrol division, and responded to 1,770 calls for service in Columbus in 2005.  The County Sheriff and Columbus periodically review the terms of the contract, and the level of the contract can be increased as needed.[156]  If incorporated, Columbus will continue to contract for services from the County Sheriff.[157]

116.       Whether Columbus is incorporated or not, Anoka County will retain the authority to handle all criminal prosecutions within the three wildlife management areas located in Columbus, on behalf of the DNR.  If incorporated, Columbus would assume responsibility for criminal prosecutions in other parts of the city at a cost estimated to be between $12,000 and $24,000 per year.[158]

117.       Forest Lake has a full-time Director of Public Safety who is a licensed police officer, 21 full-time and eight part-time sworn officers, and three support staff.  The patrol division is staffed 24 hours each day and responded to 13,795 calls in 2005.  From time to time, Forest Lake officers drive through the eastern portion of the I-35 Corridor to check the rest stop on I-35 or to conduct business in that area.[159]  Forest Lake officers will respond to Mutual Aid calls in the I-35 Corridor upon request of the Anoka County Sheriff.[160]

118.       Annexation of the eastern portion of the I-35 Corridor would not significantly affect Forest Lake’s ability to provide police protection and would cost approximately $23,500 per year.[161]  There was no evidence concerning its ability to serve the western side of the corridor.[162]  Some increased Forest Lake staff time would be required to travel to the City of Anoka to book persons arrested in either portion of the I-35 Corridor and to attend Anoka County court proceedings.[163]

119.       Both the Anoka County Sheriff and the Forest Lake Police have the training and capacity to provide law enforcement to the I-35 Corridor.[164]

Street Improvements and Maintenance

120.       Columbus employs three full-time employees and two seasonal employees for public works including street maintenance, and maintains 50.53 miles of Township roads.[165]  Columbus has adopted engineering standards for road construction.  The public works staff, under direction of the Town Manager and with advice from the Public Works Committee, recommends capital improvements which exceed $5,000.  When its population reaches 5,000, Columbus will qualify for state aid for road maintenance.[166]

121.       Forest Lake currently provides street maintenance to 116 miles of city streets.  Its Public Works Department has a full-time director and maintenance shop employee, and the street maintenance staff includes eight full-time and four part-time employees.[167]  Forest Lake budgets an amount annually for maintenance and capital improvements to its road system.[168] Forest Lake could take over the responsibility for the streets in the Annexation Area without adding significantly to its staff or budget; no evidence was offered about the costs to take over the streets on the western side of the I-35 Corridor.[169]

122.       Hornsby Avenue in the Annexation Area is in poor repair, and Columbus is working with MnDOT and Anoka County to develop a plan to reconfigure its intersection with TH 97 and then improve the road.[170]  Lyons/Elmcrest is shared by Columbus and Forest Lake and serves a largely undeveloped area.  It is also in need of improvement.[171]  In general, Columbus maintains its rural roads well.[172]

123.       If the streets in the I-35 Corridor were included in Forest Lake, Forest Lake may be able to qualify for some slight increase in its municipal state aid, but would see a gross increase of about $39,755 in its street maintenance costs.[173]

Administrative Services

124.       Columbus employs a full-time town manager, town clerk, office assistant and building inspector, and a part-time treasurer.  It contracts for a city engineer and city planner, and assessment, audit, and legal services as needed.  Its general government budget for 2006 is $638,345, and its staff is supported by several commissions, boards and committees.[174]

125.       Columbus has a master plan to develop a new Public Works Building and Town Hall.[175]

126.       Because of its larger population and more dense development, Forest Lake has a larger city staff than Columbus.  It employs 57 full-time and 35 part-time employees,[176] and is supported by several commissions, boards and committees.[177]

127.       Forest Lake has seven employees who provide general governmental services, including financial services, and three full-time employees in the community development department.  It does not anticipate that it will need to increase staff if the Annexation Area is added to it.[178]  It is not clear whether annexation of the entire I-35 Corridor would require additional staff.  Forest Lake’s budget for general government is $1,423,007 for 2006.[179]

128.       Both Columbus and Forest Lake would see an impact on their governmental operations as a result of development in the I-35 Corridor, including land planning, infrastructure development and construction, building and site construction and expansion to meet new service requirements.  Although Forest Lake has a larger staff to absorb the increase, the Columbus staff has demonstrated its ability and capacity to manage the growth.[180]

Recreational Facilities

129.       Columbus operates four public parks and has three designated undeveloped sites.  The parks are maintained by the public works staff; no staff member is assigned exclusively to park maintenance.[181]

130.       Forest Lake operates 21 public parks.  It has one full-time and 15 part-time employees.[182]

131.       Youth sports programs in the area are operated by the Forest Lake School District.[183]  Columbus operates a senior center with a part-time coordinator and plans to enhance its facilities.[184]

132.       The parks in Columbus and Forest Lake are used by residents of both communities.[185]  Increased population in Columbus and Forest Lake will place additional pressure on the park system, but both communities have plans for park expansion.  Development of the I-35 Corridor is likely to increase employment, and employees may seek out recreational activities in the surrounding area, but neither Columbus nor Forest Lake project an increase in recreational facilities as a direct result of development of the Corridor.[186]  Forest Lake does anticipate developing additional community facilities, including a community center and recreational area as part of the Headwaters Development.[187]


Impact of Proposed Action on the Delivery of Services

133.       In 2004, the Columbus Board of Supervisors included funding for a study of incorporation in the 2005 budget, and an Incorporation Committee was formed in April 2005.  That Committee met with several county officials, its engineer, attorney, planner and a city finance specialist.  At the August 2005 Annual Meeting, residents requested that Columbus include money to pursue incorporation in the 2006 budget, and $100,000 was approved for that purpose.[188]  A fiscal analysis of incorporation was prepared,[189] and the Incorporation Report was prepared and presented to the Town Board on December 14, 2005.[190]  Columbus engaged in a deliberative, planned process to develop the I-35 Corridor and to pursue incorporation as a city.[191]  Its petition for incorporation was filed on August 10, 2005.

134.       A five member Board of Supervisors elected at-large currently makes decisions for Columbus.  Conversion to a city will not require a change in the number or method of electing local officials.  Columbus also has a seven-member Planning Commission, Park Board, Road and Bridge Committee and an Economic Development Committee that could continue to function.

135.       In the event that Columbus is incorporated, it will assume the cost of misdemeanor criminal prosecutions, estimated to be $12,000 to $24,000 per year, with offsetting revenue from collection of fines.[192]

136.       Columbus has exercised urban town powers since 1963.  In most respects it operates as a small city government, lacking only the powers of tax increment financing and municipal state aid (highway) funding.  If incorporated, it would assume shore-land management functions and tobacco and liquor licensing now performed by Anoka County.[193]  If Columbus incorporates, its sewer, water, fire protection, law enforcement street maintenance and administrative services will not be significantly affected.

137.       Columbus currently exercises jurisdiction over planning and zoning, under the supervision of the town manager, with the assistance of the town planner, pursuant to contract.  Columbus has an economic development committee that assists in marketing and promoting development in Columbus with a focus on the I-35 Corridor.  It currently has access to several types of economic development tools and would have access to tax increment financing in the event that it were incorporated.[194]

138.       Columbus employs a full-time building inspector to inspect and enforce the State Building Code.  Incorporation will not affect inspection or enforcement.[195]  If the I-35 Corridor were annexed to Forest Lake, the inspector’s duties would decrease, but it is not clear that a part-time inspector would be adequate to meet the needs of the balance of Columbus.

139.       Since the 1990’s, Columbus’s land use planning, zoning changes, development of the water and sewer infrastructure, and transportation planning have all focused on integrating services on both the east and west side of the I-35 Corridor and treating it as an integral unit.[196]

140.       Columbus has begun to successfully plan and implement the development of the I-35 Corridor.[197]  Incorporation will allow Columbus to continue to develop and implement long-range planning for the I-35 Corridor, as well as for other portions of the Township, and to assure that protection of its natural resources and additional residential and commercial development are carefully coordinated.  Columbus will not incur any unusual administrative or service delivery changes as a result of incorporation or by development of the I-35 Corridor.[198]

141.       Columbus has done the planning and has the resources to complete the development of utilities in the I-35 Corridor.  Annexation of all or a portion of the I-35 Corridor would undercut the systematic planning process that Columbus has undertaken.[199]

142.       Forest Lake has had no planned process to develop the Annexation Area or the I-35 Corridor, and no articulated explanation for its attempt to annex only the eastern portion of the Corridor.  In March 2005, the mayor of Forest Lake was contacted by landowners in the I-35 Corridor about whether Forest Lake might have an interest in annexation of that area.  The mayor and city administrator met with about six residents who asked a number of questions about city policies and practices, and the process for requesting annexation.  A second meeting was held in late March or early April.  Forest Lake provided information about taxes and its water system, and its long range plan.  In early August, a group of landowners in the Annexation Area notified Forest Lake of its intent to file a petition for annexation.[200] 

143.       Prior to receiving a petition from some residents of the Annexation Area in August 2005, Forest Lake had no plans to extend public utilities into the area, had conducted no public meetings addressing annexation, had not engaged Columbus or the surrounding communities in discussion of annexation, and had not included any discussion of the possible expansion into Columbus in its submissions to the Metropolitan Council.  Its evidence concerning the delivery of services to the western portion of the I-35 Corridor was incomplete.[201]

144.       Forest Lake has the capacity to take over the sewer development previously installed by Columbus and to expand it, but it has not discussed the timing of future development with the property owners or developed a staging plan.  Forest Lake has no reasonable plan or timetable to extend water service to the I-35 Corridor, and preliminary plans would require that the Metropolitan Council approve expansion of Forest Lake’s water service through an area that does not currently have MUSA designation.  There is no evidence that development of the I-35 Corridor is a priority for Forest Lake.  Its Capital Improvement Plan would require updating to address the additional roads and capital expenditures needed in the annexed area.[202]

145.       Annexation of the Annexation Area or the entire I-35 Corridor by Forest Lake would disrupt on-going services and implementation of the sewer and water system by Columbus.

Existing or potential environmental problems and whether the proposed action is likely to improve or resolve these problems.

146.       There are no known environmental problems in Columbus.  The Town provides on-going monitoring of Individual Sewage Treatment Systems (ISTS), and has adopted standards that exceed the Minnesota Pollution Control Standards.  There have been no recent failures of ISTS in Columbus.  Its restrictions on lot size and cooperation with the DNR have aided in the protection of its natural resources and wetland management.[203]  In conjunction with the Rice Creek Watershed District, Columbus is developing a surface water management plan.[204]  New development requires the approval of the affected watershed district.  Neither incorporation nor annexation is likely to improve or resolve existing or potential environmental problems in the I-35 Corridor or in Columbus.

147.       There are some identified potential environmental hazards within the AUAR area to the east of the I-35 Corridor in Forest Lake.  There is no evidence that those potential hazards would affect the I-35 Corridor or other portions of Columbus.[205]


Fiscal impact on the subject area and adjacent units of local government, including present bonded indebtedness; local tax rates of the county, school district, and other governmental units, including, where applicable, the net tax capacity of platted and unplatted lands and the division of homestead and nonhomestead property; and other tax and governmental aid issues.

148.       Columbus uses a general fund and special revenue funds for key service areas.  Sanitary sewer and water systems will operate as separate enterprise funds, which enables Columbus to set user charges to meet its costs.  Both Columbus and Forest Lake have adequate fund balances to meet future operating and investment demands, manage cash flow, respond to unexpected expenditures and increase financial stability.[206]

149.       Since 2001, both Columbus and Forest Lake have had a steady increase in their property market value and tax capacity, which forms the basis for generating property tax revenue.  Property tax is based on the estimated market value of the property, and the conversion of that value to the tax capacity value, which is dependent upon the class of property.  Columbus has developed the I-35 Corridor in order to increase the amount of commercial and industrial property and diversify its tax base.[207]

150.       At the present time, the tax rate in Columbus exceeds the tax rate in Forest Lake.[208]

151.       If the Annexation Area were annexed to Forest Lake, its tax base would increase by less than 1 percent; Columbus would lose 3.4 percent of its tax base.[209]  There was no evidence of the impact of annexation of the entire corridor, but it would be a significantly greater loss to Columbus.

152.       Springsted Incorporated conducted a fiscal analysis for Columbus of the impact of incorporation, including a detailed analysis of the potential fiscal impact.  It concluded that, if incorporated, Columbus would:

a.                      Lose about $20,000 of county road aid, but could qualify for state highway aid funds when its population increased to 5000;

b.                      Be required to assume the annual costs of prosecution of crimes, currently covered by the county, and estimated to be  $12,000 to $24,000 per year;

c.                       Be eligible to collect fee and fine revenue of approximately $15,000 annually;

d.                      Be eligible for local government aid from the state, approximately $24,720 annually; and

e.                      Property taxes would likely decrease from 5.98% to 8.49% in the first year following incorporation (largely because of the elimination of one-time incorporation costs).[210]

153.       Moody’s Investors Services has assigned Columbus an A3 credit rating and expects its financial position to remain sound “due to prudent management, growing property tax and fee revenues, and the maintenance of favorable reserves;”[211] Columbus has General Fund reserves estimated to be 84% of General Fund revenues.[212]  White Bear Township is the only other township in the metropolitan region that has a bond rating. 

154.       As recently as 2003, Forest Lake’s bond rating was BAA2, a lower level than the current Columbus rating.[213]  Forest Lake currently has an A1 credit rating, two steps higher than the Columbus rating.  This could allow Forest Lake to borrow money at more favorable rates than Columbus.  Columbus has bonded indebtedness of $5,386,218, from bonds issued in 2003, 2004 and 2005, largely to fund the development of the sewer system, water system and some road improvements.  Several of the bonds will be paid in whole or part from special assessments.[214]

155.       Both Columbus and Forest Lake have additional capacity to incur debt to support public improvements.[215]  Columbus has retained Springsted Incorporated to assist its future debt planning, and evaluate future financing options.[216]

156.       At the time of the hearing, Forest Lake had no plan for assuming any of the Columbus debt obligation or for compensating Columbus for its investment in infrastructure.[217]  If Forest Lake annexes all or a portion of the I-35 Corridor it would obtain the improvements financed by the bonds and the properties that have benefited from the investment in infrastructure. The properties in the Annexation Area represent 44% of the total assessments from the 2004A Bonds that financed the trunk sanitary sewer system.  Similar issues are raised about payment of some of the bonds issued in 2005.[218]  In the event that annexation were ordered, it would be necessary to calculate a reasonable method for reimbursing Columbus for its investment and receiving current and deferred assessment income.[219]

157.       Loss of the Annexation Area to Forest Lake could increase Columbus’s property tax rate by 3.17% to 7.7% in 2007.[220]  Annexation would increase Forest Lake’s property tax by less than one percent in the same year, but decrease the taxes of persons living in the annexation area.[221]  There is no evidence of the effect of annexation of the entire I-35 Corridor.  In its analysis of the proposed annexation, Forest Lake assumed that the western portion of the I-35 Corridor would be developed and provide an increased tax base for Columbus, and based its estimate of lost tax base on annexation of only the eastern portion.[222]  However, its expert conceded that if both sides of the I-35 Corridor were annexed, the loss of tax base to Columbus and increase to Forest Lake would be greater because more of the property on the west side has been developed.[223]

158.       In the short term, the benefit to Forest Lake from revenues from taxes and state aid in the Annexation Area will be offset by increased costs to serve the area.[224]  Forest Lake has not analyzed the revenues and expenses for the I-35 Corridor as a whole.  Neither Columbus nor Forest Lake could predict with any degree of certainty what the increased tax base would be in the I-35 Corridor over the next 20 to 40 years as the water and sewer infrastructure is completed and commercial and industrial development occurs, but both parties anticipate that there will be significant growth.[225]  In general, the overall tax base in both Columbus and Forest Lake is likely to increase because of the growth in the metropolitan area.

159.       At the present time, Columbus does not expend a great deal to provide the I-35 Corridor with police, fire, recreation, street maintenance or other services, and thus will not realize much savings, nor will Forest Lake incur significant expense, if the I-35 Corridor is annexed in whole or in part.[226]  As the area develops, costs will increase, regardless of whether the area is annexed, incorporated or remains as it is.  The speed of development, rather than the type of governance, is more likely to affect the costs.

160.       Columbus has the resources necessary to efficiently and economically operate as a city.[227]

161.       The proposed incorporation or annexation would have no direct impact on the County, School District or other taxing districts.[228]  Annexation is not likely to alter the facility needs of the School District, but development in the I-35 Corridor will increase the tax base.[229]  There was no conclusive evidence that either annexation or incorporation would speed that development.

162.       The nearby cities of Lino Lakes and Hugo are not likely to be directly affected by either annexation or incorporation because they do not provide services or derive income from the I-35 Corridor.  Annexation or incorporation may decrease the likelihood that either of those cities would annex a portion of Columbus in the future.[230]

163.       Both Columbus and Forest Lake are financially stable and have the financial capacity to adequately and effectively deliver services.[231]  Forest Lake has greater resources because of its greater size, but there are also has several areas within the city where development is occurring that are competing for its resources.

164.       Columbus would lose tax base and infrastructure, as well as the benefits of its comprehensive planning, if Forest Lake annexed either the Annexation Area or the I-35 Corridor.

Relationship and effect of the proposed action on affected and adjacent school districts and communities.

165.       Schools in Columbus and Forest Lake are not expected to be affected by either annexation or incorporation.

166.       Several surrounding communities have expressed support for Columbus incorporation, including Anoka County, East Bethel, Linwood Township, Hugo, Wyoming Township, Ham Lake, and Blaine.[232]

167.       Anoka County opposes annexation of the Annexation Area to Forest Lake.[233]

168.       Neither incorporation nor annexation is likely to have an effect on the City of Lino Lakes.[234]


Whether delivery of services to the subject area can be adequately and economically delivered by township government or would be best provided through incorporation, annexation or another type of boundary adjustment.

169.       For the past 25 years, Columbus has increasingly functioned as a small city, and not as a township.  It has taken over virtually all aspects of local government and hired a professional staff to manage its affairs.  It has conscientiously complied with regulations concerning protection of the abundant natural resources in its area and enacted its own regulations to enhance and protect those resources and its rural character.  Although Columbus has retained the township form of government to this point, it has in effect operated as a city.  If incorporation were denied, Columbus could continue to exercise its stewardship of the area, but would be susceptible to continued encroachment of and annexation by the surrounding cities.  By incorporating, Columbus will be better able to commit to long-range planning for development within its boundaries and the protection of its natural resources.[235]

Applicability of the State Building Code.

170.       Columbus complies with the State Building Code and employs a full-time building inspector to administer it.[236]  Neither incorporation nor annexation will affect its applicability.

Additional Factors Applicable to Proposed Annexation, as set forth in Minn. Stat. § 414.031, subd. 4.

Plans and programs by the annexing municipality for providing needed governmental services to the subject area.

171.       Prior to the time that the City Administrator and Mayor met with some property owners in March 2005, Forest Lake had not done any analysis of proposed annexation.  Thereafter, prior to filing the petition for annexation, it did a “quick and dirty” study of its ability to provide services to the annexation area.[237]  In response to the Petition for Annexation, Forest Lake has developed some plans to serve the Annexation Area.  Because of Forest Lake’s size and financial stability, the relatively small size of the Annexation Area and the entire I-35 Corridor, it is likely that Forest Lake could plan for and provide services to the area.  However, it does not have a timeline, budget or capital plan to do so.  Police Chief Quiring, Mr. Ruff and Mr. Gravel all testified that they were not aware of any specific plans to serve the Annexation Area.[238]   

172.       There was no evidence that Forest Lake discussed the proposed annexation of a portion of Columbus with Anoka County or Washington County or neighboring communities.[239]

If only a part of the township were annexed, the ability of the remainder of the township to continue or the feasibility of it being incorporated separately or being annexed to another municipality.

173.       There is no justification for annexing just the Annexation Area to Forest Lake.  The I-35 Corridor is being planned and developed as one area, and the freeway is the unifying feature rather than a natural boundary.  On both sides of the I-35 Corridor, wetlands provide a buffer to residential neighborhoods, as reflected in Forest Lake’s plan for a conservancy or parks and recreation to the east of the I-35 Corridor, and the natural boundary created by the Rice Creek Chain of Lakes on the west side.

174.       If the entire I-35 Corridor were annexed to Forest Lake, Columbus could be incorporated, but it would lose the benefits of the planning it has completed and the potential commercial/industrial tax base in the Corridor.  Although Columbus would still have a small amount of developable commercial/industrial land along Lake Drive, it would have less incentive to manage and develop that land in a manner that complemented the I-35 Corridor and the surrounding residential areas because of its small size and development potential. 

175.       Although Columbus could continue to provide a rural level of service in the short-term, as the population and development increase in several adjoining communities, pressure will continue to grow on the road system, recreational facilities, and developable land in Columbus.  Without the I-35 Corridor, Columbus will have little additional tax base to support the demand for increased services required by the increasingly urban and suburban development of the entire region. 

176.       Incorporation will allow Columbus to continue to develop as a rural residential area, which will help protect the boundaries of the large wildlife management areas and maintain a level of development consistent with their intended uses including hunting, and protect critical habitat and wetlands.[240]

177.       There will be little effect on Forest Lake if the annexation is denied except for the loss of the potential tax base from future development of commercial/industrial land within the I-35 Corridor.  Its Comprehensive Plan does not rely upon or plan for the development of the Annexation Area, the I-35 Corridor, or the land immediately contiguous to it.  Its plans for commercial/industrial development are centered along I-35 north of SW 11th Avenue, along West Broadway, and along Highway 61, and not along I-35 south of Trunk Highway 97, which it has planned for conservancy or park land.  Although it may face pressure to develop west into Columbus along Broadway Avenue, it is not proposing to annex that land and apparently has no immediate plans to do so.[241]

178.       There is no evidence to support annexation of the Annexation Area, the I-35 Corridor, or the balance of Columbus to any other city.

Degree of Contiguity of the Boundaries of the Subject Area and Adjacent Units of Local Government

179.       Columbus’s current boundaries have been in place for 150 years, and its eastern border is also the eastern border of Anoka County.  The Annexation Area abuts a portion of the western border of Forest Lake, and a small strip of wetland runs along the east side of the border.  Forest Lake’s initial position was that I-35 was a natural boundary on the western side of the Annexation Area.  Although it has not entirely abandoned that position, Forest Lake now asserts that the western edge of the I-35 Corridor is a clear, recognizable border, and that annexation should include the entire I-35 Corridor.  The western edge of the I-35 Corridor borders the Rice Creek Chain of Lakes Wildlife Management Area.

180.       I-35 cuts through both Columbus and Forest Lake; it does not follow either boundary, and both communities have planned for and developed land on both sides of the highway.  Because the sewer and water infrastructure has been planned to serve both sides of the corridor, I-35 is not a natural boundary.

181.       There is no single clear delineation between the two communities.  The location of the I-35 freeway interchanges, shared mailing address, school system, fire protection and road system minimize the perceived significance of the geographical boundary.

Public Comment

182.       Most residents who testified at the public hearing were satisfied with the services that Columbus is providing to them, including fire and police protection, administrative services and road maintenance.  Most were satisfied that Columbus has planned appropriately for the development of the I-35 Corridor, and they have confidence in their paid staff and the appointed boards, commissions and committees to continue to provide the necessary level of oversight for future development.  Many would like to preserve the present, historical boundaries of Columbus and object to any annexation by Forest Lake.  They would like to continue to plan and guide development for all of Columbus.[242]

183.       Some citizens informally contacted persons who owned land within the I-35 Corridor to determine who supported incorporation and who supported annexation.[243]  The results of their efforts are reflected on Public Exhibit 11, which is roughly consistent with the other public testimony offered, and with Exhibit 578, Figure 1.5.[244]  Persons favoring annexation generally own property east of the freeway north of 145th Avenue, in the northern end of the annexation area, and in proximity to the land to be developed as a harness racing track.[245]

184.       Some residents of Columbus and Forest Lake did not support incorporation.  In some instances, these residents do not believe that the Columbus Town Board has fairly and dispassionately considered whether annexation is appropriate, and others believe that Forest Lake can better serve the I-35 Corridor because it has more highly developed and staffed city services.[246]  One speaker opposed both incorporation and annexation at this time, believing that Columbus in not likely to increase in population to the point that it can benefit from economies of scale, and that with additional time for reflection, the better result could be annexation of portions of the township to East Bethel, Forest Lake or Lino Lakes in order to obtain those economies.[247]

185.       Because Forest Lake has not formally proposed annexation of the entire I-35 Corridor, it is uncertain which property owners on the west side of the corridor favor annexation, incorporation or neither one.   Some individuals who originally petitioned Forest Lake for annexation no longer support annexation.[248]

186.       Although there has been no referendum on incorporation, there is strong public support for it in Columbus, as reflected by the large number of postcards of support filed with the Columbus Town Clerk.[249]

Based on these Findings of Fact, the Administrative Law Judge makes the following:

CONCLUSIONS

1.               The Administrative Law Judge has jurisdiction in this matter through  the Office of Municipal Boundary Adjustments, pursuant to Minn. Stat. §§ 414.01, 414.02, 414.031 and 414.12 and the assignment by the Director of the Municipal Boundary Adjustments Unit to the Office of Administrative Hearings.

2.               Proper notice of the hearing in this matter has been given.

3.               The Town of Columbus is about to become urban or suburban in character.  Columbus is in the process of developing the I-35 Corridor for commercial and industrial use characteristic of urban development.  The remainder of Columbus is suburban, and incorporation is necessary to protect the open space and rural residential areas from encroachment and to assure appropriate land use planning.  Incorporation will assure sound urban development of the I-35 Corridor and the preservation of open space, and assure that municipal services are available throughout Columbus as needed. [250]

4.               Municipal government is required to protect the public health, safety and welfare of Columbus.[251]

5.               Incorporation is in the best interests of Columbus.[252] 

6.               Annexation of the east side of the I-35 Corridor, or the entire I-35 Corridor, by Forest Lake is not in the best interest of the subject area and would create undue hardship on the remainder of Columbus.  [253]

7.               Neither the Annexation Area nor the I-35 Corridor would be better served by Forest Lake.[254]

8.               The increase in tax revenues for Forest Lake would bear a reasonable relationship to the monetary value of the benefits conferred upon the area included in the Annexation Petition.  However, it cannot be determined on this record if the increase in tax revenues for Forest Lake would bear a reasonable relationship to the monetary value of the benefits conferred upon the entire I-35 Corridor.[255]  Moreover, continued development in the I-35 Corridor will increase the taxable value of the property, but it cannot be determined from this record whether the future increase in revenues for Forest Lake would exceed the reasonable value of benefits conferred on the I-35 Corridor if annexation were granted.

9.               Both Columbus and Forest Lake have the capacity to serve the I-35 Corridor, but Forest Lake does not have a plan to do so if annexation is granted.[256]

10.           No adjustment of the Columbus boundaries is necessary.[257]

11.           These Conclusions are arrived at for the reasons set out in the following Memorandum, which is incorporated into these Conclusions by reference.

Based upon these Findings of Fact and Conclusions, and for the reasons set forth in the accompanying Memorandum, the Administrative Law Judge makes the following:

ORDER

IT IS HEREBY ORDERED THAT:

1.               The Petition for Incorporation (I-68) of Columbus Township is GRANTED;

2.               Incorporation shall be effective upon the election and qualification of the new City Council as set out in paragraph 3 of this Order;

3.               The form of government shall be “Optional Plan A.”  An election shall be held not less than 45 days nor more than 60 days of the effective date of this Order to elect a mayor and four council persons at large who shall serve until January 1, 2007.  Elizabeth Mursko shall be the acting clerk for the election and she shall prepare the official ballot.  Affidavits of candidacy shall be filed not more than four weeks and not less than two weeks before the date of the election.  The polling place shall be Columbus Township Hall and the Election Judges shall be appointed from those serving in the last Town election.  The hours of the election shall be 7:00 a.m. to 8:00 p.m.; 

4.               An election of a mayor and four council members shall be held on November 7, 2006.  The mayor and two city council members shall be elected for a two-year term commencing January 1, 2007, and two city council members shall be elected for a four-year term commencing January 1, 2007.  Thereafter the city council members shall be elected for four year terms;

5.               In all other respects, the elections shall be conducted in conformity with the provisions of the Minnesota Statutes concerning the conduct of municipal elections insofar as applicable;

6.               The ordinances of Columbus Township, as well as the Land Use and Planning Controls and other ordinances, and all license privileges, shall remain in effect within the boundaries of Columbus  until repealed or replaced by the new governing body of the City of Columbus;

7.               Upon incorporation, all money, claims, or properties including real estate owned, held or possessed by the former Columbus Township, and any proceeds or taxes levied by Columbus Township, collected and uncollected, shall become the property of and inure to the benefit of the newly incorporated City with full power and authority to use and dispose of for such public purposes as the council deems best subject to claims of the creditors.  This will include cash reserves and fund balances of the Township and all public property and equipment held by Columbus Township.[258]

8.               Columbus Township’s outstanding indebtedness, if any, will become the financial obligation of the newly incorporated City. [259]

9.               The Petition by Forest Lake to Annex Certain Portions of Columbus Township (A-7371) is DENIED;

10.           The Order Denying Motion to Dismiss and accepted the Petition by Forest Lake to Annex Certain Portions of Columbus Township, issued April 10, 2006, is reaffirmed and incorporated herein;

11.           This Order is effective July 21, 2006.

Dated:  July 6, 2006

 

                                                                      s/Beverly Jones Heydinger

BEVERLY JONES HEYDINGER

Administrative Law Judge

                                                                     

 

Reported:     Transcript Prepared

                    Kirby A. Kennedy & Associates

 

NOTICE

          This Order is the final administrative order in this case under Minn. Stat. §§ 414.02, 414.031, 414.07 and 414.09.  Any person aggrieved by this Order may appeal to Anoka 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, and Order within seven days from the date of the mailing of the Order pursuant to Minn. R. 6000.3100.  However, no request for amendment shall extend the time of appeal from these Findings of Fact, Conclusions and Order.

MEMORANDUM

          This proceeding was commenced by Columbus Township when it filed a petition for incorporation.  The City of Forest Lake opposed incorporation, and filed a petition to annex the eastern portion of the I-35 Corridor, referred to as the Annexation Area.  As the hearing in this matter progressed, however, it became apparent that the planning for the entire I-35 Corridor and services to it should be managed by one town or city.  In its post-hearing submissions, Forest Lake argued for annexation of the entire I-35 Corridor.

          Taking into account the factors set forth in Minn. Stat. §§ 414.02 and 414.031, and the goals promoting municipal development set forth in Minn. Stat. § 414.01, subd. 1b, it is apparent that, on balance, Columbus’s petition for incorporation should be granted and Forest Lake’s annexation petition should be denied.

          The goals for the extension of municipal government are to assure that urban services are planned and contiguous to developing areas, that areas are developed only as needed, and are designed to protect the stability of land use.  Although there is a presumption that open space and rural residential uses can be protected by an unincorporated township, the goals emphasize the integrity of land use planning and efficient local government.  In this case, although much of Columbus will retain its rural residential level of development, that level of development is dictated in large part by the type of terrain, and not by its distance from the rapidly developing communities around it.  Incorporation will help Columbus maintain the integrity of its expansive area of natural resources and plan development in a way that will help protect those resources for the metropolitan area as a whole.  In addition, it is undisputed that development is moving rapidly north along I-35, and that there is substantial pressure to develop that portion of Columbus at urban densities.  That pressure was acknowledged in the Metropolitan Council’s designation of the I-35 Corridor in Columbus as part of the MUSA, eligible for connection to the metropolitan sewer interceptor.

          Another goal expressed in statute is to form a municipality when it has the necessary resources to operate economically and efficiently.[260]  Columbus has steadily developed the resources to function as a municipality.

Columbus is about to become urban or suburban in character.

The parties are in agreement that the I-35 Corridor is now or is about to be urban or suburban in character and should receive municipal services in order to protect the public health, safety and welfare of the area.[261]  The metropolitan area is growing rapidly, and pressure from that growth is affecting Columbus because of its proximity to both Minneapolis and Saint Paul, and other rapidly expanding communities such as Forest Lake, as well as its location along I-35. 

There is no evidence that development will occur only on the eastern side of I-35 in the Annexation Area, and clear evidence that the two sides of the I-35 Corridor are being developed together.  Forest Lake failed to show the logic of dividing the eastern portion of the system from the western portion.  Its expert stated only that the freeway constituted a reasonable boundary for orderly extension of Forest Lake.[262]  Apparently, based on the evidence presented at the hearing, Forest Lake has abandoned that position and now asserts that the entire I-35 Corridor should be planned and developed by one community, annexed to Forest Lake.  Its Planning Report, submitted by John Shardow, stated:

The planning and intended land uses in the annexation area, the fact that trunk sewer lines and a lift station are located within the annexation area, and the location relative to transportation access suggest that it is now, or will become, urban or suburban in character.  Further, the annexation area is also isolated from all other development in Columbus Township….[263] 

It is clear that this statement applies equally to the entire I-35 Corridor since the western portion is not isolated from the Annexation Area and both have transportation access.

Outside of the I-35 Corridor, Columbus is developing as a suburb, a small community within easy commuting distance of a larger city, Forest Lake, and in this instance, within commuting distance of the major cities of Minneapolis and Saint Paul.  Because of its topography and proximity to large protected natural resources, Columbus will have little medium or dense residential development in other parts of the township within the next 30 years.  However, the growth in the surrounding communities will increase the pressure on Columbus’s transportation network, and increase the pressure to develop larger scale, denser residential development in proximity to its protected areas and near its borders.  By incorporating, Columbus will reinforce its commitment to controlling and regulating that development in a manner consistent with its classification as a diversified rural area, and enhance its continued participation in collaborative planning for the rapidly growing area. 

Mr. Shardlow testified that a suburb is an area that is now or about to become connected to urban services, specifically sewer and water, and other areas that are defined by large residential lots, not connected to sewer and water should be more appropriately defined as exurban.[264]  However, he acknowledged that Columbus is within commuting distance of the Twin Cities, and that Lino Lakes to its south is suburban.[265] 

Protecting the stability of unincorporated area not presently needed for more intensive uses.

Columbus is required by the Metropolitan Council to plan for its growth precisely because of its location and problems created by unplanned development.  The I-35 Corridor and the area surrounding Columbus is presently needed for intensive development, and this is likely to extend inside the Columbus borders.  By assuming urban town powers, Columbus has engaged in planning as a city, and its detailed zoning and land use regulations, as well as its participation in regional planning efforts, reflect this.

Arguably Columbus could continue to operate as it currently does, using its powers as an urban town. But it will be better able to plan and invest in infrastructure if it is incorporated and attains equal footing with the surrounding communities.  Incorporation does not prevent annexation by another community.  However, if Columbus is incorporated, it is more likely that the surrounding communities will plan cooperatively, and annexation efforts will proceed with greater thought, consultation and planning.

Incorporation will protect the integrity of land use planning.

The goals for municipal development favor thoughtful planning.  In this case, Columbus began to plan for incorporation with the submission of its Comprehensive Plan in 1999, and its initiation of an incorporation study in 2004.  It has steadily moved ahead to put into place the administrative and financial systems required to assume status as a city, and it has concrete plans and a timeline for development of the I-35 Corridor.  In contrast, although Forest Lake already has administrative systems in place, it had no plan at all for the Annexation Area until it was approached by a group of landowners in 2005.  At the time the Annexation Petition was filed, Forest Lake commissioned studies to create a record for this proceeding.  However, the studies were not developed as a guide for planning, did not include a timeline for implementation, and did not address compensation to Columbus for its investment in infrastructure.[266]  Its lack of thorough, thoughtful planning is reflected by its change of position after the hearing to seek annexation of the I-35 Corridor as a whole.

Consideration of the factors set forth in Minn. Stat. §§ 414.02, subd. 3 and 414.031, subd. 4.

Each of the factors is detailed in the findings of fact and was fully considered in reaching the decision to incorporation of Columbus.  Certain aspects are emphasized here.

Present population and number of households, past population and projected population growth for the subject area.

          The population is growing rapidly in both Anoka and Washington Counties, and particularly in Forest Lake.  The population of Columbus is growing more slowly, in large part because of the natural barriers preventing development.  However, it is clear that the booming growth of the surrounding area is having an impact on Columbus.

Although its population may continue to grow slowly, the demands to participate in regional planning are likely to increase.  For example, pressure for improvements to I-35 and TH 97, and regional planning for the entire 1-35 Corridor north to Hinckley, required city-like planning and participation, and Columbus responded.  Those demands will increase as urban development intensifies in the surrounding area.  Similarly, significant growth in population throughout the area will increase the pressure on the protected natural resources in Columbus, requiring increased cooperation and planning among state, county and local governments.

Quantity of land within the subject area; the natural terrain including recognizable physical features, general topography, major watersheds, soil conditions and such natural features as rivers, lakes and major bluffs.

          One of the distinguishing features of Columbus is the vast expanse of wildlife management areas, lakes and wetlands.  In order to protect these natural resources, development must be limited and carefully controlled.  There is very little area in Columbus except the I-35 Corridor that can be developed for commercial and industrial use.  Forest Lake has sufficient land to allow for its growth.  It does not need to annex any portion of the I-35 Corridor to meet its needs.

Present pattern of physical development, planning, and intended land uses in the subject area including residential, industrial, commercial, agricultural, and institutional land uses and the impact of the proposed action on those uses.

          Columbus is now, and will remain, largely rural residential because of its natural characteristics.  However, the increasing traffic along I-35 virtually assures that the pressure for development in the corridor will continue.  Columbus has a plan to meet that demand through the design and implementation of public utilities to the entire corridor.   The balance of Columbus will experience pressure at its margins from surrounding communities. Incorporation will further Columbus’s efforts to cooperate in the planning and controlled development of the entire area.   Annexation to Forest Lake will do nothing to protect the land in Columbus that is outside of the I-35 Corridor, will remove the one portion of Columbus that is likely to generate significant commercial and industrial tax base, and decrease both the incentive and resources for continued planning and involvement.  Because the utilities have been planned for the I-35 Corridor as a whole, there is no rationale for annexing the eastern portion to Forest Lake.  That would simply leave Columbus with a smaller and incomplete system to manage, without any apparent benefit to the subject area.

Prior to the filing of the annexation petition, Forest Lake had no plans to extend urban services to the border of the Annexation Area within the timeframe of its Comprehensive Plan or within its proposed plan amendment for the Headwaters development.  Although Forest Lake has the capacity to develop such a plan, it does not have a timeline to implement it.  The uncertainty caused by annexation would upset the on-going planning and development within the I-35 Corridor.  The balance of Forest Lake would not be affected by annexation.

It is obvious from the maps of the area that the I-35 Corridor is somewhat isolated from the rest of the township because of the large wetlands west of the corridor.  However, it is also clear that the traffic moves across the wetlands on the existing roads, and that Columbus has focused its development efforts within the corridor for the past several years.  The corridor’s isolation is less significant because Columbus has no immediate plans to provide sewer and water to the other parts of the township.  Although this isolation might support annexation of the entire corridor, Forest Lake has not analyzed or planned to serve the western side of the corridor.[267]  To meet those demands, Forest Lake could do little more than take over and expand the Columbus system.

The present transportation system and potential transportation issues, including proposed highway development.

          Both Columbus and Forest Lake are involved in planning to increase capacity and decrease congestion of the road system, particularly at the intersections with I-35.  Columbus does not anticipate developing new major roads because of the natural limitations presented by its terrain.  Forest Lake will develop new roads outside the Annexation Area to accommodate new residential development.  Regardless of incorporation or annexation, there is a need to address reconstruction of Hornsby Avenue, which serves the Annexation Area, and its intersection with TH 97.   Columbus has begun working with other agencies to do the necessary planning.  Once Columbus attains a population of 5000, it may be able to access state highway aid funds for which it does not presently qualify.  However, in light of the relatively small amount of additional money that would be available to Forest Lake for Hornsby Avenue redevelopment, it is not a significant factor in the decision to grant incorporation or deny annexation.


Land use controls and planning presently being utilized in the subject area, including comprehensive plans, policies of the Metropolitan Council; and whether there are inconsistencies between proposed development and existing land use controls.

          Both Columbus and Forest Lake have approved Comprehensive Plans and adequate zoning regulations in place.  Both expect to file amended plans with the Metropolitan Council in 2008.  There are no apparent inconsistencies between the proposed development and existing land controls.   If annexation were granted to Forest Lake, it would be required to amend its Comprehensive Plan to deliver utilities to the I-35 Corridor.

Existing levels of governmental services being provided to the subject area, including water and sewer service, fire rating and protection, law enforcement, street improvements and maintenance, administrative services, and recreational facilities and the impact of the proposed action on the delivery of the services.

          The existing level of governmental service is set forth in detail in the Findings of Fact and will not be restated here.  Overall, Columbus is currently providing the level of service typical of a small city, and Forest Lake is providing the level of service typical of a larger city.  Incorporation will not significantly impact the delivery of services.  If annexation were granted, it is likely that Forest Lake could deliver services to the Annexation Area, but it would hamper Columbus’s efforts to provide utilities only on the western side of the corridor.  Although the size of the I-35 Corridor is not large, Forest Lake did not offer evidence of the effect annexation of the entire Corridor would have on its delivery of services or on Columbus.  Some services, including fire protection and schools, will not be affected by either annexation or incorporation.

Much of the focus at the hearing was on the relative ability of the two communities to plan, install and operate sewer and water to the Annexation Area.  Although Forest Lake criticized Columbus for the length of time it had taken to plan and implement the system, Forest Lake also claimed that development in the western side of the I-35 Corridor had been premature and had not promoted the highest and best use for the land.[268]  Although at this time, the infrastructure only serves property owners on the west side of the I-35 Corridor, Columbus is in the process of establishing infrastructure to serve both sides so that service can be installed as the property owners request it.  It has not yet received requests to extend services to the Annexation Area.  Forest Lake witnesses conceded that it was premature to install services in the Annexation Area until property owners requested them.  Both Columbus and Forest Lake expect that the rate of development will speed up in the next few years as the infrastructure is completed.

Forest Lake also criticized the lack of planning for the southern portion of the Annexation Area, but its own plan for that area would take many years to implement.  The two communities may wish to cooperate to develop the southern portion of the Annexation Area and the southwestern portion of Forest Lake.  But because of its proximity to the interstate highway, it is quite likely that the demand for development within the southern portion of the Annexation Area will occur well before the extension of Forest Lake to its adjoining boundary.  The Annexation Area falls in the 2010 MUSA boundary, but Forest Lake’s plans to extend sewer and water from the 2040 urban reserve to the east would require a MUSA adjustment.  Although the MUSA line can be revised, it is apparent that Forest Lake’s current development plans call for extension of services into the adjoining area well after 2010.

Forest Lake also criticized the method that Columbus employed to allocate the costs to install water and sewer.  Although there may be a difference of opinion about the best way to handle the assessment of the costs, the evidence was clear that Columbus has managed its finances properly, that it has the necessary revenue stream to meets its obligations, and that it is fiscally stable.  It is up to the voters of Columbus to decide if its elected officials have proceeded in their best interest.  There is no basis to conclude that Columbus assessed the costs in a manner that was fiscally irresponsible.

Because it is a larger city, Forest Lake has a larger staff and more financial resources.  Its competent, professional staff could undoubtedly rise to the responsibility of serving the I-35 Corridor if required to do so.  It has greater experience with urban development, with the operation of public utilities and with delivering city services.  Because the I-35 Corridor is relatively small, it is likely that over time,