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HomeMy WebLinkAboutItem 3 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 ^-.^ / I + \ ^4 \ Metropolitan Airports Commission r ? + 5 \^ ^/"'4''<,npiB ^' 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