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City of Lakeville
Community & Economic Development
Memorandum
To: Mayor and City Council Members
Justin Miller, City Administrator
From: David L. Olson, Community and Economic Development Director
Copy: Gary Schmidt, Director of Reliever Airports – MAC
Paul Oehme, Public Works Director
Daryl Morey, Planning Director
Zach Johnson, City Engineer
Date: May 28, 2019
Subject: Request for Orderly Annexation Agreement for Airlake Airport
In January of 2018 the City Council approved a petition from the Metropolitan Airports Commission
(MAC) to annex 118 acres of Airlake Airport property previously located in Eureka Township described
as the South Runway area. Minnesota Statutes allow cities to annex by ordinance up to 120 acres of
land that is contiguous to the City when petitioned by the property owner. A single property owner is
only allowed to petition to annex a maximum of 120 acres of land within a 12-month period.
After the 118 acre annexation was approved last year, Eureka Township notified the City that it would
be in the best interest of the Township, MAC, and the City to pursue an Orderly Annexation
Agreement. The Eureka Township Board discussed this approach at their May 13 meeting and
unanimously voted to pursue an Orderly Annexation Agreement/Resolution for the portion of Airlake
Airport between Highview Avenue and Cedar Avenue and north of 225th Street. This area is shown in
yellow on the attached map; showing the area proposed to be annexed which totals 176.89 acres.
There are areas of Airlake Airport located east of Cedar Avenue, south of 225th Street and west of the
railroad tracks that are proposed to remain in Eureka Township.
The Metropolitan Airports Commission considered this issue at their meeting on May 20th. Attached is
a copy of the approved resolution in support of the annexation of the portion of Airlake Airport
Property north of the 225th Street and east of Highview Avenue and west of Cedar Avenue. MAC has
agreed to reimburse the Township and the City for any legal expenses incurred in the preparation and
review of an Orderly Annexation Agreement. MAC is finalizing plans to extend sewer and water
services to the South Runway area that was annexed in 2018. This work would be completed this year.
MAC is also planning to extend sewer and water services and construct a public restroom building in
the North Runway area that is included in the proposed Orderly Annexation Area. Staff recommends
pursuing an orderly annexation agreement with Eureka Township for the portion of the Airlake Airport
located between Highview Avenue and Cedar Avenue and north of 225th Street.
COUNCIL ACTION REQUESTED:
A consensus from the City Council as to whether to pursue an orderly annexation agreement with
Eureka Township for the above described area of Airlake Airport.
223 LITTLE CANADA ROAD EAST - SUITE 200 SAINT PAUL, MINNESOTA 55117
TELEPHONE 651-224-3781 FACSIMILE 651-223-8019
www.kellyandlemmons.com
Kelly & Lemmons, P.A.
A T T O R N E Y S A T L A W
Chad D. Lemmons
chadlemmons@kellyandlemmons.com
Real Property Law Specialist, Certified by the Real
Property Section of the Minnesota State Bar Association
Gary Schmidt (Email: Gary.Schmidt@mspmac.org)
Metropolitan Airports Commission
January 18, 2018 VIA E-MAIL
RE: Airlake Airport
Dear Mr. Schmidt,
The Eureka Town Board feels it would be in the best interest of the Township, MAC and the
City of Lakeville to discuss a plan of Orderly Annexation of the airport property by the City.
Orderly Annexation grants all parties the ability to guide any further annexation in a direction
that benefits everyone. It allows Lakeville and MAC to focus on creating a long term plan for
providing sewer and water service to the airport, while at the same time safeguarding the interest
of Eureka.
As you know, Orderly Annexation requires the joint agreement of Eureka and Lakeville.
However, given that the goal is to provide Airlake Airport with sewer and water, MAC has an
important role to play.
Please contact me at your earliest convenience.
Respectfully yours,
KELLY & LEMMONS, P.A.
/s/ Chad D. Lemmons
Chad D. Lemmons
CDL/tab
OF&A 05/06/2019
Business Item 3.3.
Page 1 of 3
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TO:
FROM:
SUBJECT:
DATE:
Operations, Finance and Administration Committee
Gary Schmidt, Director - Reliever Airports (612-726-8135)
Resolution in Support ofAirlake Annexation
May 1, 2019
FOR ACTION
Summar
The City of Lakeville and Eureka Township have expressed interest in an orderly annexation
agreement for the remainder ofAirlake Airport property extending west of Cedar Avenue and north of
225th Street. The annexation process would bring the affected Airlake Airport property into the
municipal boundary of Lakeville. A resolution of support will demonstrate the Metropolitan Airports
Commission's (MAC) preference as the sole impacted property owner for the annexation to be
completed.
Annexation will allow the developed areas of the airport to eventually be served by municipal
sewer and water. These services are highly desired on the airport and will advance MAC'S
mission to provide the best airport experience.
Fiscal Im act
D No Impact Operating Budget D CIP D Other
It is common practice for the property owner to reimburse the city or township for legal
expenses and fees incurred in the orderly annexation process. The estimated costs for drafting
a joint resolution, preparing the necessary documents and completing the process through the
Office of Administrative hlearings for the State of Minnesota is $4,000.
Action Re uested
1. Recommend that the full Commission adopt the attached Resolution in support of an
orderly annexation of certain properties at the Airlake Airport into the City of
Lakeville.
2. Authorize the Executive Director/CEO or his designee to execute the Resolution on
behalf of the Commission and any necessary documents for the orderly annexation
process between Eureka Township and the City of Lakeville.
3. Authorize the reimbursement to the City of Lakeville and Eureka Township for legal
expenses and fees related to an orderly annexation.
OF&A 05/06/2019
Business Item 3.3.
Page 2 of 3
Back round
For environmental purposes and in large part because of groundwater contamination near the
Lake Elmo Airport, the Metropolitan Council directed MAC to get all of our airports served by
sanitary sewer and water services where feasible. MAC subsequently adopted a policy for
sewer and water installation at the Reliever Airports to reduce our exposure for contamination
throughout the airport system.
Prior to 2018, most of the Airlake Airport was located within Eureka Township. The township
has no municipal sewer and water systems in place or any plans to provide such services.
However, contiguous to the Airlake Airport, the City of Lakeville has municipal sewer and water
systems available. For nearly twenty years, MAC has unsuccessfully attempted to negotiate
annexation to allow sewer and water access to the airport from the City of Lakevitle.
In 2017, MAC petitioned the City of Lakeville to annex 118 acres of airport property into the
city. The City of Lakeville adopted an ordinance annexing that real property in January of 2018
and received an "Order Approving Annexation Ordinance" from the Chief Administrative Law
Judge in March of 2018. During the annexation process, MAC made it known to both the City of
Lakeville and Eureka Township that MAC intended to continue petitioning for annexation until
the developed areas of the Airlake Airport were in the City of Lakeville.
Recently, Eureka Township and the City of Lakeville have expressed an interest in cooperatively
pursuing an orderly annexation of the remaining airport property located west of Cedar Avenue
and north of 225th Street into the City of Lakeville
Prior Related Actions
Commission authorized a petition to the City of Lakeville in October of 2017 requesting
approximately 118.7 acres of the Airlake Airport property be annexed by ordinance into the
City of Lakeville.
Applicable Legal Authority
Minnesota Statutes § 414.0325 authorizes townships and cities to provide for an orderly annexation
process of unincorporated areas that are determined to be in need of orderly annexation. MAC, as the
property owner, can petition for annexation into the City of Lakeville.
Anal sis
There are no practical alternatives for MAC to meet its environmental responsibility of
providing municipal sewer and water services to the remaining developed areas of the airport.
Attachment:
Attachment 1 - Resolution No. 2333