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2001-11-13 AUAR/EAW ROBERT L. HOFFMAN GERALD H. FRIEDELL EDWARD J. DRISCOLL JOHN D. FULLMER FRANK I. HARVEY CHARLES S. MODELL CHRISTOPHER J. DIETZEN LINDA H. FISHER THOMAS P . STOLTMAN MICHAEL C. JACKMAN JOHN E. DIEHL JON S. SWIERZEWSKI THOMAS J. FLYNN JAMES P. QUINN TODD I. FREEMAN GERALD L SECK JOHN B. LUNDQUIST DAYLE NOlAN * JOHN A. COTTER * PAUL B. PLUNKETT ALAN L. KILDOW KATHLEEN M. PICOTTE NEWMAN GREGORY E. KORSTAD GARY A VAN CLEVE * TIMOTHY J. KEANE MICHAEL W. SCHLEY TERRENCE E. BISHOP GARY A RENNEKE CHRISTOPHERJ. HARRISTHAL KENDEL J. OHLROGGE BRUCE J. DOUGLAS WILLIAM C. GRIFFITH, JR. JOHN R. HILL PETER J. COYLE LARRY D. MARTIN JANE E. BREMER JOHN J. STEFFENHAGEN MICHAEL J. SMITH ANDREW F. PERRIN FREDERICK W. NIEBUHR LARKIN, HOFFMAN, DALY & LINDGREN, LTD. ATTORNEYS AT LAW WILLIAM G. THORNTON DOUGLAS M. RAMLER LYNN M. STARKOVICH ANN M. MEYER STEPHEN J. KAMINSKI THOMAS F. ALEXANDER DANIEL T. KADLEC PAUL H. MCDOWALL ADAM S. HUHTA * ALEYA R. CHAMPLIN JAMES M. SUSAG * DANIEL J. BALLlNTINE JOHN A MACK JEFFREY D. CAHILL SEAN D. KELLY SONYA R. BRAUNSCHWEIG JOSEPH J. FITTANTE, JR. JONATHAN J. FOGEL CYNTHIA M. KLAUS MARK D. CHRISTOPHERSON NEAL J. BLANCHETT TAMARA O'NEILL MORELAND JAMES A. MCGREEVY, III THOMAS A. GUMP * TODD A. TAYLOR CHRISTOPHER J. DEIKE GENEVIEVE A. BECK MARLA M. ZACK DIONNE M. BENSON JEREMY C. STIER CHRIS M. HEFFELBOWER 1500 WELLS FARGO PLAZA 7900 XERXES AVENUE SOUTH BLOOMINGTON, MINNESOTA 55431-1194 TELEPHONE (952) 835-3800 FAX (952) 896-3333 OF COUNSEL JAMES P. LARKIN * JACKF. DALY D. KENNETH LINDGREN ALSO ADMITTED IN WISCONSIN November 13,2001 Ms. Linda Goeb City Administrator City of Albertville 5975 Main Avenue NE P.O.Box9 Albertville, Minnesota 55301-0009 VIA EMAIL and US MAIL Dear Ms. Goeb: Recently, Contractor Property Developers Company ("CPDC") met with City of Albertville staff to discuss its concept for a mixed-use planned development ("Project") on the 94-acre Vetsch property ("Property") east of County Road 19 and south of 70th Street NE. The Project requires a change in land use for a portion of the Property and related PUD zoning and subdivision approvals. The Project also requires preparation of a mandatory environmental assessment worksheet ("EA W") under state law. An EA W was previously prepared for CPDC's Towne Lakes development, which is currently under construction on the 85-acre Balfany property. During our meeting with City staff, the alternative of an Alternative Urban Areawide Review ("AUAR") for approximately 200 acres of undeveloped land north ofl-94, south of 70th Street NE and east and west of County Road 19 was discussed ("North Albertville AUAR"). The AUAR was suggested as a method of addressing cumulative traffic impacts and areawide shoreland issues. The AUAR would substitute for project-specific EA Ws that would otherwise be required under state law. On November 5, 2001, City staff presented the concept ofa North Albertville AUAR to the City Council. The City Council directed staffto prepare an AUAR scope of work and schedule for consideration at the November 19 City Council meeting. The purpose of this letter is to express CPDC's concerns about the scope, timing and cost of the North Albertville AUAR and to express its preference for a project-specific EA W for its proposed Project on the Property. LARKIN, HOFFMAN, DALY & LINDGREN, LTD. Ms. Linda Goeb November 13,2001 Page 2 As described below, CPDC believes that the City's traffic and environmental impact concerns can be comprehensively addressed in a properly structured EA W. CPDC's concerns about the North Albertville AUAR concept are: 1. Scope. To meet state requirements, the proposed North Albertville AUAR must be a complex document with a level of analysis comparable to a full environmental impact statement ("EIS"). It would likely involve two or more development scenarios for over 200 acres of land with different land use plan designations and development issues. Although City staff could develop some of the background information required for the AUAR, cooperation ofthe multiple private parties within the AUAR project area would be essential. CPDC is concerned that this process has the potential for unforeseen and unintentional delays. Through its work with the City, DNR, Wright County Soil and Water Conservation District and Army Corps of Engineers on the first phase of Towne Lakes, CPDC believes its development team has a sound working knowledge of the traffic and environmental impact issues related to its proposed Project on the Property. This invaluable, practical experience will enable it to "hit the ground running" in working with the City to prepare an EA Won the Project. Preliminary environmental studies have been done on the Property and the same may not be the case for other undeveloped properties within the North Albertville AUAR project area. Finally, as we discussed with the City Engineer, Albertville does not have a qualifying comprehensive plan. This means that it is not eligible to prepare an AUAR unless it receives approval ofthe EQB Chair. Although this is not an insurmountable obstacle, it is a complicating factor with the potential for further delay. In addition, certain types and sizes of industrial development that do not meet the definition of "light industrial development" in EQB Rules, Pt. 4410.360, subp. 1 may not be reviewed through an AUAR. Some of the property within the potential geographic scope of the proposed North Albertville AUAR is guided or zoned industrial and, depending on the type of development proposed, may not be eligible for environmental review under the AUAR format. 2. Timing. The North Albertville AUAR would take substantially longer to prepare and process than an EA Won CPDC's proposed Project on the Property. An EA W takes less time to prepare because it involves a smaller geographic area, one development scenario, and less detail than either an AUAR or a full EIS, although cumulative impacts for traffic and infrastructure may still be addressed. An EA W is essentially a one-step procedure that involves a 30-day comment period and a decision by the responsible governmental unit on the need for an EIS within 3 to 30 days after the end of the 30-day comment period. In comparison, an AUAR generally takes substantially longer to prepare than an EA W LARKIN, HOFFMAN, DALY & LINDGREN, LTD. Ms. Linda Goeb November 13, 2001 Page 3 because of its broader geographic scope, number of development scenarios, and the greater level of analysis mandated by state law. An AUAR is a two-step process that involves circulation of a draft document for review and comment, followed by preparation of a final document and a mitigation plan. CPDC's consultants advise that it is rare for the entire AUAR process to take less than five to six months, and longer preparation and processing times are not unheard of even in seven county metropolitan area communities that have prepared more than one AUAR document. Given these factors, CPDC is concerned that the timetable for AUAR preparation and processing may not accommodate CPDC's timetable for preparation and processing of land use, zoning and subdivision approvals for its proposed Project on the Property. CPDC hopes to have City approval of necessary zoning and subdivision approvals for the Project by early summer 2002. CPDC recognizes that it will take a substantial amount of time to address City concerns regarding its proposal, but it is confident that these concerns can be addressed within this time frame. Assuming a fair amount of time to reach agreement with the City on a concept plan for environmental review, CPDC believes that the EA W format and procedure are much more likely to accommodate its development timetable than the North Albertville AUAR. 3. Cost. City staff proposes to recover the cost of the North Albertville AUAR by charging the cost back to development on a per-acre basis. CPDC is concerned that this may result in substantial additional costs over and above those related to preparation of a project- specific EA W. This is due not only to the greater complexity and magnitude ofthe AUAR, but also to the fact that CPDC anticipates that it will also be responsible for coordination and monitoring costs of its own development team, over and above its proportionate share of City consultant costs. Structuring Project-Specific EA W to Address Cumulative Traffic Impacts. To address the City's concerns about cumulative traffic impacts of future planned development north ofl-94, CPDC proposes that the City traffic engineer prepare a more comprehensive traffic impact analysis of the cumulative impacts of its proposed Project and other planned development north ofl-94 for inclusion in a CPDC project-specific EA W. This type of analysis is encouraged in EQB rules and would give the City the necessary information to evaluate the need for public improvements to accommodate proposed development. The same level of cumulative traffic impact analysis that would be done for the North Albertville AUAR could conceivably be included in the EA W. As a general proposition, CPDC believes that the type of environmental impacts related to proposed development north of 1-94, including shoreland and wetland issues, are more appropriately addressed in a project-specific EA W as opposed to an AUAR. This is because site-specific grading, drainage and utility plans must be prepared to fully analyze these types of environmental impacts. Some generic area-wide LARKIN, HOFFMAN, DALY & LINDGREN, LTD. Ms. Linda Goeb November 13,2001 Page 4 AUARs are prepared before such site-specific detail is ever developed. Thus, it is highly unlikely that the proposed North Albertville AUAR would be a proper vehicle for a one-stop resolution for all DNR shoreland and WCA and Corps wetland issues related to the proposed Project and other development in the area. CPDC is excited about working with the City on its next phase of development. We hope this information is helpful to you in evaluating the environmental review options for the proposed Project and other planned development in the area. Sincerely, ~~~ Linda H. Fisher, for LARKIN, HOFFMAN, DALY & LINDGREN, Ltd. cc: Homer Tompkins, CPDC Jay Liberacki, CPDC Fran Hagen, Westwood Professional Services Corey Meyer, Westwood Professional Services Rob Bouta, Westwood Professional Services Pete Carlson, SEH Michael Couri, Couri & MacArthur Alan Brixius, NAC 719000.1