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Item 3.1 Comprehensive Plan3601 Thurston Avenue Anoka, MN 55303 763.231.5840 TPC@PlanningCo.com 1 MEMORANDUM TO: Otsego Planning Commission FROM: D. Daniel Licht DATE: 17 July 2025 RE: Otsego – Comprehensive Plan TPC FILE: 101.01 BACKGROUND City staff is initiating discussion of several Comprehensive Plan topics as possible amendments of the 2023 Otsego Comprehensive Plan. The topics for review include a change to the Urban Service Staging Plan for Southwest Otsego, change to the Interim Land Use Plan policies for the Urban Service Reserve Area, and minor adjustments to future roadways identified on the Transportation Plan map. The Planning Commission will consider these items at their meeting on 21 July 2025. Exhibits: Urban Service Staging Plan Map; existing/draft Transportation Plan Map; existing/draft ANALYSIS Urban Service Staging Plan. The 2023 Comprehensive Plan establishes the sequence of urban development expansion within the City. The staging of development includes designation of Sewer Districts where City sewer and water are to be made immediately available; Urban Service Expansion Areas where utilities will be extended to once the sewer districts are nearly fully developed; a Long Range Urban Service Area where the historic pattern of subdivision of acreage lots served by on-site private utilities; and a permanent Rural Residential Preserve Area along the Mississippi River. There is an area at the extreme southwest corner of Otsego, abutting the west and south boundaries of the City, consisting of approximately 160 acres that is included in the designated West Sewer District. Sewer (and water) utilities are not currently available to this area of the City, or any of the area south of Interstate 94. The land in this area has been subdivided into irregular shaped parcels between one and 19 acres in area with an average area of 6.3 acres. Furthermore, the area includes extensive wetlands and significant topography changes. Item 3.1 2 These factors make it unlikely the area will be proposed for development with urban services even when extended to the area. Rather, urban services would likely only be extended to the area to serve existing development in the case of environmental need. This situation is similar to that of the area in Northeast Otsego, which is designated as Long Range Urban Service Area. City staff is recommending that the Urban Service Staging Plan be amended to designate the Southwest Otsego area as Long Range Urban Service Area as well. This amendment would allow potential opportunities for further subdivision and development of large lot rural residential dwellings based on the policies set forth Comprehensive Plan. Interim Land Use Plan. As described above, the Urban Service Staging Plan provides for orderly expansion of development served by City utilities. The 2023 Comprehensive Plan further establishes an Interim Land Use Plan to address land use and development within the designated Urban Service Expansion Area until such time as the Sewer District is expanded to allow for the land uses guided by the Future Land Use Plan. Densities of one dwelling unit for each 10 acres of land are allowed in the Urban Service Expansion Area until the Sewer District is expanded. The Interim Land Use Plan further prescribes that development that is allowed within the Urban Service Expansion Area prior to extension of utilities is to be clusters of lots not larger than 2.5 acres in area. The purpose of these limitations is to maintain contiguous large tracts of land that may be more easily divided with extension of utility and street corridors and to avoid scattered concentrations of residential development that decreases the efficient delivery of City services. We would note that allowance of residential lots between 1.0 and 2.5 acres in area can also be problematic in terms of future development. The lots can be difficult to incorporate into abutting new urban development and can create compatibility issues if that urban development is not also residential. Access to these 2.5 acre lots can also be problematic if the lot is not incorporate as part of the surrounding development as many of the roadways used to access them today are planned as future collector or arterial streets. The Planning Commission expressed interest in reviewing options to allow for larger rural residential lots within the Urban Service Area as part of discussing a recent application for a subdivision. In those areas within the Urban Service Area that are more distant from the current sewer district, there may be opportunity to allow larger lot subdivisions without precluding long-term urban expansion. Within the Twin Cities Metropolitan Area, areas outside of the Municipal Urban Service Area (sewer district) are typically required to be a minimum of 10 acres in area as sufficient to allow a reasonable interim rural use while not precluding further urban development. On this basis, the Planning Commission may consider the following change to the Interim Land Use Plan: A-1 District A-2 District Permitted Conditional Lot Area Minimum 20ac. 20ac. 10ac. 1.0ac. Maximum -- -- 2.5ac. Minimum Lot Width 450ft. 450ft. 300ft. 150ft. 3 Subdivision of rural lots within the Urban Service Expansion Area would still require a Zoning Map amendment to A-2, Long Range Urban Service District and approval of a Conditional Use Permit to allow for a lot less than 20 acres in area and less than 450 feet in width. However, there would be the option to have a parcel between 10 acres and 20 acres that is not currently allowed. Criteria would be outlined as part of the Conditional Use Permit to ensure that the proposed subdivision remains consistent with the City’s growth management polices. We would recommend that allowance of the rural lot alternative been limited to Urban Service Expansion Areas E2, E3, E5, and W3, at least initially. This conservative approach to modifying the Interim Land Use Plan will allow the Planning Commission to gauge interest and evaluate the outcomes of allowing larger interim rural lots, without affecting areas more likely to develop in a 5-10 year timeframe. Within the designated Urban Service Expansion Area, the division of existing large tracts of land into residential lots less than 20 acres in area should be discouraged to facilitate future development and extension of utility and transportation corridors. Precaution should continue to be exercised with future development requests to avoid gaps between neighborhoods that interrupt the homogeneous pattern of urban services such as utilities, streets, trails, and park service areas. Properties are to remain zoned A-1, Agriculture Rural Service District until such time as a more intensive land use as guided by the Future Land Use Plan can be developed. The City may allow for a property to be zoned to A-2, Long Range Urban Service District that allows for interim development to occur in one of two ways: The first would be to subdivide parcels into lots not less than 10 acres in area as this area can allow for a wider range of rural residential land uses yet be feasibly planned for future resubdivision based availabity of City utilities. The second approach to interim rural development relies upon clustered subdivision designs intended to preserve the majority of a parcel for future development. The desired results of this approach areboth approaches to interim rural development is to maintain orderly community growth, discourage competition for capacity necessary to finance the cost of the municipal utility systems, and prevent development that is not continuous to existing urban areas. Because of the more immediate potential for utility availability for parcels adjacent to but outside of the Sewer Districts, only the clustered lot approach is to be utilized for Urban Expansion Areas E1, E2, E3, W1 and W2 to allow for interim rural development. Implementation of the amendment of the Interim Land Use Plan would also necessitate amendment of the Zoning Ordinance provisions for A-2 District lot requirements and conditional uses. 4 Transportation Plan. The City approved a preliminary plat for Amber Meadows located adjacent to McAllister Avenue north of 70th Street (CSAH 38) within the West Sewer District. The preliminary plat approval included a section design for improvement of McAllister Avenue. The Transportation Plan designates McAllister Avenue and 77th Street as a minor collector street corridor providing connection between 70th Street (CSAH 38) and Nashua Avenue. The section design for McCallister Avenue includes an expanded right-of-way with a landscape boulevard and trail along the west side of the roadway to provide a connection between the trail on the north side of 70th Street (CSAH 38) and the planned greenway park that will follow Otsego Creek and surround the large wetland complex north of Amber Meadows and Martin Farm and is east of Prairie Pointe. City staff recommends that the Transportation Plan be amended to designate McCallister Avenue and 77th Street between 70th Street (CSAH 38) and Nashua Avenue as a Parkway to provide for continuation of the section design approved with the Amber Meadows preliminary plat. We are also recommending that the minor collector street designated on the Transportation Plan from the Mason Avenue and 83rd Street intersection to Nashua Avenue be realigned to abut Otsego Creek and the wetland complex. This minor collector street segment is also proposed to designated as a Minor Collector Parkway to utilize the section design approved with Amber Meadows making the roadway part of the greenway corridor. The proposed changes to the Transportation Plan map in this area also reflect extension of the north minor collector street to intersect Nashua Avenue at future 77th Street intersection with the south minor collector street being turned to intersect the north minor collector street based on the north minor collector street segment being more likely to carry greater traffic. One other minor amendment proposed to the Transportation Map: Changing McAllister Avenue between 60th Street (CR 137) and 70th Street (CSAH 38) from Residential Major Collector to C/I Major Collector based on the planned industrial uses abutting the east side of this street segment. CONCLUSION The Planning Commission will review the proposed amendments of the 2023 Comprehensive Plan at their meeting on 21 July 2025. City staff is seeking comments on the proposed amendments and direction to proceed with noticing a public hearing to consider adoption of the changes to the Urban Service Staging Plan, Interim Land Use Plan, and Transportation Plan. c. Adam Flaherty, City Administrator/Finance Director Audra Etzel, City Clerk Ron Wagner, City Engineer 456738456738 456742 456742 456742 456742 456736 456739 456739456739 456719 456719 §¨¦9 4 456737 456718 ")137 456738 ")137 TRANSPORTATIONPLAN00.45 0.90.225 Miles É LEGEND C/I MAJOR COLLECTOR PROPOSED C/I MINOR COLLECTOR PROPOSED RESIDENTIAL MAJOR COLLECTOR PROPOSED RESIDENTIAL MINOR COLLECTOR PROPOSED MINOR ARTERIAL PROPOSED PARKWAY PROPOSED PRINCIPAL ARTERIAL FUTURE MINOR ARTERIAL DISCLAIMER:This product is for informational purposes and may not have beenprepared for, or be suitable for legal, engineering, or surveyingpurposes. Users of this information should review or consult theprimary data and information sources to ascertain the usabilityof the information. K:\cad_eng\PROJECTS\GIS\TPC\Otsego\Comprehensive Plan 2012\Transportation Plan COMPREHENSIVE PLAN 2023 ADOPTED: AMENDED: Res 2023-52, 14 August 2023 456738456738 456742 456742 456742 456742 456736 456739 456739456739 456719 456719 §¨¦9 4 456737 456718 ")137 456738 ")137 TRANSPORTATIONPLAN00.5 10.25 Miles É LEGEND C/I MAJOR COLLECTOR PROPOSED C/I MINOR COLLECTOR PROPOSED RESIDENTIAL MAJOR COLLECTOR PROPOSED RESIDENTIAL MINOR COLLECTOR PROPOSED MINOR ARTERIAL PROPOSED PARKWAY PRINCIPAL ARTERIAL FUTURE MINOR ARTERIAL DISCLAIMER:This product is for informational purposes and may not have beenprepared for, or be suitable for legal, engineering, or surveyingpurposes. Users of this information should review or consult theprimary data and information sources to ascertain the usabilityof the information. K:\cad_eng\PROJECTS\GIS\TPC\Otsego\Comprehensive Plan 2012\Transportation Plan COMPREHENSIVE PLAN 2023 ADOPTED: AMENDED: Res 2023-52, 14 August 2023 DRAFT !!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!W2 E5 E2 E3 456738 456742 456742 456736 456739 456719 §¨¦9 4 456737 456718 E4 456738 W1 ")137 ")137 E1 W3 URBAN SERVICESTAGING PLAN00.5 10.25 Miles É LEGEND Rural Residential Long Range Urban Service Area Urban Service Expansion Area Sew er District K:\cad_eng\PROJECTS\GIS\TPC\Otsego\Comprensive Plan 2012\Urban Service Staging Plan DISCLAIMER:This product is for informational purposes and may not have beenprepared for, or be suitable for legal, engineering, or surveyingpurposes. Users of this information should review or consult theprimary data and information sources to ascertain the usabilityof the information. COMPREHENSIVE PLAN 2023 ADOPTED: AMENDED: Res 2023-52, 14 August 2023 !!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!W2 E5 E2 E3 456738 456742 456742 456736 456739 456719 §¨¦9 4 456737 456718 E4 456738 W1 ")137 ")137 E1 W3 URBAN SERVICESTAGING PLAN00.5 10.25 Miles É LEGEND Rural Residential Long Range Urban Service Area Urban Service Expansion Area Sewer District K:\cad_eng\PROJECTS\GIS\TPC\Otsego\Comprensive Plan 2012\Urban Service Staging Plan DISCLAIMER:This product is for informational purposes and may not have beenprepared for, or be suitable for legal, engineering, or surveyingpurposes. Users of this information should review or consult theprimary data and information sources to ascertain the usabilityof the information. COMPREHENSIVE PLAN 2023 ADOPTED: AMENDED: Res 2023-52, 14 August 2023 DRAFT