1996-02-08 Proposed Frankfort Annexation for Golf Course
MEMORANDUM
TO: GARY HALE, CITY ADMINISTRATOR; ALBERTVILLE CITY COUNCIL
FROM: MIKE COURI, CITY ATTORNEY
SUBJECT: PROPOSED FRANKFORT ORDERLY ANNEXATION AGREEMENT
DATE: FEBRUARY 8, 1996
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I have reviewed the proposed Frankfort orderly annexation
agreement and recommend that the City not sign the agreement in its
current form. While I strongly recommend orderly annexation
agreements as an efficient, cooperative annexation vehicle, several
provisions in this agreement are not necessary to the proposed
annexation.
The property proposed to be annexed is that portion of the
proposed Kenco Golf Course PUD which lies in Frankfort Township
(approximately 80 acres). To the best of my knowledge, the
Developer has not formally asked the City to annex this property
nor has the City requested that Frankfort allow this annexation.
Frankfort appears to be taking the ini tiati ve in addressing an
issue which it believes will arise in the near future.
Under current law, the City could annex the Kenco property by
ordinance if 100% of the property owners petition the city to annex
the property and if the annexations occur in 60-acre chunks or less
(i. e. the property can be annexed by passing two successi ve
ordinances, one annexing 60 acres and the other annexing 20 acres) .
The City must notice the Township of the proposed annexation and
hold a public hearing, but there is no Municipal Board hearing and
minimal expense. If annexed under the 60-acre law, the city will
have to share future taxes over the next five years with the
Township, but these taxes would be based upon the tax revenue the
City received at the time of the annexation, not the tax revenue
received from the development which occurs on the property after
the annexation.
As discussed in prior correspondence, the annexation agreement
between the City and Frankfort that was entered into in the mid-
1980's (which prohibits the City from annexing Frankfort property
until December, 1996) is most likely not enforceable, and therefore
should not prohibit the City from annexing under the 60-acre law.
The items in the proposed orderly agreement which I believe
present problems are as follows:
Paraqraph 8.
Frankfort is proposing a property tax sharing scheme
which would give Frankfort all of the tax revenue in the first
two years, followed by a declining percentage in each of the
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next 5 years. Tax sharing
period under this agreement.
under this agreement would
annexation taxes (i.e. after
would occur over a seven-year
Further, the tax revenue shared
be a percentage of the post-
development occurs).
Under the GO-acre law, the Frankfort would receive all of
the tax revenue in the first year, followed by a declining
percentage in each of the next 5 years, for a total of six
years, not seven. In addition, Frankfort's share would be
calculated based upon the pre-annexation taxes, and Frankfort
would recei ve no portion of the tax revenue that post-
annexation development generates.
I recommend that the City propose the tax sharing scheme
as would apply to a GO-acre annexation.
Paraqraph 9.
This paragraph would attempt to prohibit the City from
annexing any additional Frankfort property for a period of ten
years . Given the small amount of developable land in the
City, and the level of growth experienced in the area over the
last few years, this ten-year limitation would severely limit
the City's future growth options. Under the GO-acre
annexation law, no such prohibition would apply.
While the 10-year limitation is probably not enforceable
under current law, a recent bill introduced in the Legislature
would make these types of limitations enforceable in the
future. I recommend that the City delete paragraph 9 in its
entirety in any future discussions/drafts.
Paraqraph 10.
This paragraph would require the City to enter into an
agreement to serve Green Haven Estates with sanitary sewer.
The current language sets out none of the parameters of how
these services would be delivered or paid for, or why sanitary
sewer service should be extended to this area. Even if the
City decided that it did want to extend its services to
Frankfort, an agreement to this effect will undoubtedly be
very detailed, very complicated and will take a long time to
work out. One sentence in an orderly annexation agreement can
not hope to adequately address these issues. In addition,
Green Haven Estates has nothing to do with the proposed
annexation of the Kenco property, and need not be addressed as
part of this annexation agreement.
I recommend that the City delete paragraph 10 in its
entirety in any future discussions/drafts, and should address
this as a separate issue in separate discussions if the City
wishes to pursue joint services with Frankfort.
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If the recommended changes to paragraph 8 and the deletion of
paragraphs 9 and 10 are made to this agreement, I would recommend
that the City sign the agreement. In the interest of efficiently
addressing this matter, I would suggest that the City appoint two
of its Council Members and its City administrator to meet with two
members of the Frankfort Town Board and its clerk to discuss a
possible orderly annexation agreement. Because there are few
issues to discuss, I would expect that the City and Township will
know very quickly whether an agreement can be reached. If one
cannot be reached, it would be up to Kenco and the underlying
landowner to petition the City for annexation if they wish to bring
this property into the City.
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IN THE MATTER OF THE PETITION FOR Roman J. & Donna Mae Becker for
annexation, pursuant to Minnesota statutes 414.033, Subd. 2(3).
TO: Council of the City of Albertville, Minnesota, and
Minnesota Municipal Board
475 McColl Building
366 Jackson street
st. Paul, MN 55101-1925
PETITIONERS STATE: It is hereby requested by Roman J. & Donna Mae
Becker, the sole property owners, to annex certain property
described herein lying in the Town of Frankfort, to the City of
Albertville, County of Wright, Minnesota. The area proposed for
annexation is described as follows:
The West Half of the Northwest Quarter of Section 2, Township
120, Range 24, Wright County, Minnesota, except therefrom that
part lying south of the centerline of Wright County Highway
Number 118.
The population of the annexation area is O. Said property is
unincorporated, abuts on the city's west boundary, and is not
incl uded wi thin any other municipal i ty . The area of land to be
annexed is 59.6 acres, unplatted.
The reason for the requested annexation is single family
residential and golf course. All of the annexation area is or is
about to become urban or suburban in character. The area proposed
for annexation is not included in any area that has already been
designated for orderly annexation pursuant to M.S. 414.0325.
PETITIONERS REQUEST: That pursuant to M.S. 414.033, the property
described herein be annexed to and included within the City of
Albertville, Minnesota.
Dated: Signed:
D raJ -I- '/10 r
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