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Item 3.5 Ordinance 2025-05 Amending the Subdivision Ordinance and Approving Summary Publication Request for City Council Action DEPARTMENT INFORMATION ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE: Planning City Planner Licht 28 July 2025 PRESENTER(s) REVIEWED BY: ITEM #: Consent Assistant City Administrator/Human Resources Hille 3.5 – Subdivision Ordinance STRATEGIC VISION MEETS: THE CITY OF OTSEGO: X Is a strong organization that is committed to leading the community through innovative communication. Has proactively expanded infrastructure to responsibly provide core services. Is committed to delivery of quality emergency service responsive to community needs and expectations in a cost-effective manner. Is a social community with diverse housing, service options, and employment opportunities. Is a distinctive, connected community known for its beauty and natural surroundings. AGENDA ITEM DETAILS RECOMMENDATION: City staff recommends the City Council approve an Ordinance amending the Subdivision Ordinance. ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED? No No BACKGROUND/JUSTIFICATION: City staff initiated a review of Title 10, Chapter 2 of the City Code, this section establishes application procedures within the Subdivision Ordinance. This review was undertaken initially to respond to recommendations from the City Attorney to include language outlining an appeals process to the District Court should a subdivision application be denied by the City Council. However, our office is recommending a more comprehensive rewriting of the chapter to provide clarity on the subdivision review process and to have such processes reflect current City practices. We are also recommending adoption of provisions requiring review of common interest community (condominium) subdivisions, which are not currently addressed by the Subdivision Ordinance but are subject to City approval. • Submission Requirements. The Subdivision Ordinance establishes procedures for subdivision applications. The current provisions require applicants to submit multiple paper copies of application information for City staff review. However, the City currently accepts and encourages application information to be submitted electronically. The proposed amendments eliminate the requirement for hard copies of information to be submitted. The proposed amendment also revises the number of days for City staff to inform an applicant if the application is complete to be the 15 days as required by Minnesota Statutes 15.99. • Appeals. The Zoning Ordinance was amended in 2020 to respond to the Minnesota Supreme Court decision related to appeals of zoning decisions in the case of Schultz v. Town of Duluth, which upheld a city’s authority to enact, via the City Code, to set a limit on the time to appeal a City’s zoning decisions to the district court. The City Attorney recommends amending the Subdivision Ordinance to enact the same time limit to appeal City decisions related to subdivision applications. • CIC Plats. Condominium forms of ownership are subject to the provisions of the City’s development regulations. The Subdivision Ordinance currently does not address review and approval of condominiums even though these have the effect of subdividing property. City staff is proposing to add a review process for City approval of condominiums to allow opportunity to verify compliance with the Zoning Ordinance and Subdivision Ordinance. The proposed review process for condominium applications would follow that of final plats requiring a recommendation of the Planning Commission only if referred by the Zoning Administrator prior to City Council consideration. The proposed amendments were considered by the Planning Commission at their meeting on 16 June 2025. The Planning Commission had no comments in review of the proposed amendments and voted to recommend City Council approval. SUPPORTING DOCUMENTS ATTACHED: • Ordinance 2025-05 • Summary of Ordinance 2025-05 POSSIBLE MOTION PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES: Motion to adopt Ordinance 2025-05 amending Subdivision Ordinance procedures and approve publication in summary form. BUDGET INFORMATION FUNDING: BUDGETED: N/A N/A 1 CITY OF OTSEGO COUNTY OF WRIGHT STATE OF MINNESOTA ORDINANCE NO.: 2025-05 AN ORDINANCE AMENDING SUBDIVISION ORDINANCE PROCEDURES. THE OTSEGO CITY COUNCIL ORDAINS: Section 1. Section 10-5-1 of the Subdivision Ordinance (Filing and Review Procedures – Preapplication Meeting) is hereby repealed in its entirely and amended to read as follows: 10-5-1: SKETCH PLAN REVIEW: A. Prior to the preparation of a preliminary plat, a subdivider is encouraged to meet with the proper City staff in order to be made aware of all applicable ordinances, regulations, and plans in the area to be subdivided so that the subdivider may demonstrate that the proposed subdivision will provide for consideration of adjacent land uses and community facilities that would serve it. B. The subdivider shall submit electronic files of the sketch plan to the Zoning Administrator illustrating the proposed layout of streets within the proposed subdivision and adjacent to or connecting with abutting development, lots, proposed parks and open space, unique land characteristics, general topography, 100-year flood plain, wetlands, major drainage patterns, and written data including the approximate number of lots, typical lot area, width, and depth, and what zoning amendments, conditional use permits, or variances would be required. C. The subdivider may request that the Zoning Administrator refer the sketch plan to the Planning Commission and City Council for review and informal comment. D. Referral to the Planning Commission and City Council: 1. The subdivider shall prepare a request for sketch plan review, as provided within this title, which shall be filed with the Zoning Administrator on an official application form. 2. The application shall be accompanied by a fee as provided in section 3-1-2 of this Code. 3. Public Hearing: Upon receipt of the completed application, the City Clerk shall set a public hearing for review of the preliminary plat to be held by the Planning Commission: a. Notice of the hearing shall consist of a description of the property proposed to be subdivided and of the request shall be published in the official newspaper at least ten (10) days prior to the hearing. 2 b. Written notification of the public hearing shall be mailed at least ten (10) days prior to the hearing to all property owners within three hundred fifty feet (350') of the property in question. c. A copy of the public hearing notice and a list of the property owners and addresses to which the public hearing notice was sent shall be attested and made a part of the records of the proceeding. d. Failure of a property owner to receive said public hearing notice shall not invalidate any proceedings as set forth in this chapter, provided a bona fide attempt has been made to comply with the notice requirements of this chapter. 4. Technical Reports: 1. The Zoning Administrator shall instruct City staff, including but not limited to, the City Planner, City Engineer, Building Official, and City Attorney, and other agencies as appropriate, to prepare technical reports and provide general assistance in preparing a recommendation on the requested action to the City Council. 2. The City shall have the authority to request additional information from the applicant concerning the proposed subdivision and its operational factors or impact, or to retain expert testimony with the consent and at the expense of the applicant concerning operational factors or impacts, when said information is to be declared necessary to establish performance conditions in relation to all pertinent sections of this title. 3. Failure on the part of the applicant to supply all necessary supportive information may be basis for denial of the request. 5. Planning Commission Recommendation: 1. The Planning Commission shall conduct the required public hearing to be held for consideration of the sketch plan. 2. The applicant or a designated representative thereof shall appear before the Planning Commission at the public hearing in order to answer questions concerning the proposed subdivision. 3. The Planning Commission shall report its informal comments to the City Council after the close of public hearing; if the Planning Commission has not acted upon the sketch plan within sixty (60) days after opening a public hearing, the City Council may act on the sketch plan without the Planning Commission's recommendation. 6. City Council Action: 1. Upon receiving the comments of the Planning Commission, the request shall be placed on the agenda of the City Council; the reports and comments of the official record of the Planning Commission shall be entered in and made part of the permanent written record of the City Council meeting. 3 2. The City Council shall have the option to schedule and hold a public hearing if deemed necessary and shall make a record of any informal comments it considers relevant to protect the public health, safety, and welfare. 3. The City Council shall provide informal comment within one hundred twenty (120) days following receipt of an application completed in compliance with this title unless an extension of the review period has been agreed to by the applicant and the City. 7. Informal Comment. The comments provided by City staff, the Planning Commission and City Council in review of a sketch plan application are not binding upon either the subdivider or the City and provide no entitlement to approval of a subdivision application under this title; said comments are intended only to provide the subdivider guidance in preparation of an application for preliminary plat as to the proposed subdivision compliance with the polices, plans, regulations, and standards established by the official controls of the City. Section 2. Section 10-5-2 of the Subdivision Ordinance (Filing and Review Procedures – Preliminary Plat) is hereby repealed in its entirety and amended to read as follows: 10-5-2: PRELIMINARY PLAT: A. Application: 1. The subdivider shall prepare a request for preliminary plat, as provided within this title, which shall be filed with the Zoning Administrator on an official application form. 2. The application shall be accompanied by a fee as provided in section 3-1-2 of this Code. 3. An application shall also be accompanied by electronic copies of a preliminary plat and supportive information in conformity with requirements of section 10-7-2 of this title. 4. The applicant shall submit a current Abstract of Title or Registered Property Certificate, along with any unrecorded documents, an Opinion of Title, and a legal description of the property to be subdivided. 5. The preliminary plat shall be considered as being complete for review only when there is compliance with all of the information requirements and the appropriate fees and escrows have been submitted. B. Public Hearing: Upon receipt of the completed application, the City Clerk shall set a public hearing for review of the preliminary plat to be held by the Planning Commission: 1. Notice of the public hearing shall consist of a description of the property to be preliminary platted and of the request shall be published in the official newspaper at least ten (10) days prior to the hearing. 2. Written notification of the public hearing shall be mailed at least ten (10) days prior to the 4 hearing to all property owners within three hundred fifty feet (350') of the property in question. 3. A copy of the public hearing notice and a list of the property owners and addresses to which the public hearing notice was sent shall be attested and made a part of the records of the proceeding. 4. Failure of a property owner to receive public hearing notice shall not invalidate any proceedings as set forth in this chapter, provided a bona fide attempt has been made to comply with the notice requirements of this chapter. C. Technical Reports: 1. The Zoning Administrator shall instruct City staff, including but not limited to, the City Planner, City Engineer, Building Official, and City Attorney, and other agencies as appropriate, to prepare technical reports and provide general assistance in preparing a recommendation on the requested action to the City Council. 2. The City shall have the authority to request additional information from the applicant concerning the proposed subdivision and its operational factors or impact, or to retain expert testimony with the consent and at the expense of the applicant concerning operational factors or impacts, when said information is to be declared necessary to establish performance conditions in relation to all pertinent sections of this title. 3. Failure on the part of the applicant to supply all necessary supportive information may be basis for denial of the request. D. Planning Commission Recommendation: 1. The Planning Commission shall conduct the required public hearing to be held for consideration of the preliminary plat. 2. The applicant or a designated representative thereof shall appear before the Planning Commission at the public hearing in order to answer questions concerning the proposed request. 3. The Planning Commission may recommend any condition of approval it considers necessary to protect the public health, safety, and welfare; provide consistency with the Comprehensive Plan; or ensure compliance with this title. 4. The Planning Commission shall make its recommendation to the City Council after the close of public hearing; if the Planning Commission has not acted upon the preliminary plat within sixty (60) days after opening a public hearing, the City Council may act on the preliminary plat without the Planning Commission's recommendation. E. City Council Action: 1. Upon receipt of the recommendation of the Planning Commission, the request shall be placed on the agenda of the City Council; the reports and recommendations of the official record of the Planning Commission shall be entered in and made part of the permanent written record of the 5 City Council meeting. 2. The City Council shall have the option to schedule and hold a public hearing if deemed necessary. 3. The City Council impose any condition of approval it considers necessary to protect the public health, safety, and welfare; provide consistency with the Comprehensive Plan; or ensure compliance with this title. 4. The City Council shall approve or disapprove the preliminary plat within one hundred twenty (120) days following receipt of an application completed in compliance with this title unless an extension of the review period has been agreed to by the applicant and the City. 5. If, upon receiving said reports and recommendations of the Planning Commission and City staff, the City Council finds that specific inconsistencies exist in the review process and thus the final decision of the City Council will differ from the recommendation of the Planning Commission, the City Council may, before taking final action, refer the matter back to the Planning Commission for further consideration. The City Council shall provide the Planning Commission with a written statement detailing the specific reasons for referral. This procedure shall be followed only one time on a singular action. 5. If the preliminary plat is not approved by the City Council, the reasons for such action shall be recorded in the proceedings of the Council and shall be transmitted to the applicant. If the preliminary plat is approved, such approval shall not constitute final acceptance of the design and layout. Subsequent approval will be required of the engineering proposals and other features and requirements as specified by this title to be indicated on the final plat. The City Council may impose such conditions and restrictions as it deems appropriate or require such revisions or modifications in the preliminary plat or final plat as it deems necessary to protect the health, safety, comfort, general welfare and convenience of the City. 6. The City Council reserves the right to decline approval of a preliminary plat if due regard is not shown for the preservation of all natural features, such as topography, trees, watercourses, scenic points, prehistoric and historical spots, and similar community assets which, if preserved, will add attractiveness and stability to the proposed development of the property. 7. All decisions made by the City Council regarding a preliminary plat shall be final, except that any aggrieved person shall have the right to appeal within thirty (30) days after delivery of the decision to the appellant, to the District Court in Wright County. Any person seeking judicial review under this section must serve the City and all necessary parties, including any landowners, within the thirty (30) day period defined above. F. Effect of Approval: 1. Following City Council approval of a preliminary plat, the applicant must submit a final plat to the City within one (1) year of preliminary approval unless otherwise specified as a condition of approval or provided for by a development contract otherwise approval of the preliminary plat shall be considered void. 2. The City Council may grant an extension of the preliminary plat approval of up to one (1) year, provided that: 6 a. The extension is requested in writing and filed with the Zoning Administrator at least thirty (30) days prior to the expiration of the initial preliminary plat approval. b. The request for extension states facts demonstrating that a good faith attempt has been made to complete subdivision. c. The circumstances related to the preliminary plat approval, including compliance with official controls, has not changed to such extent that the preliminary plat is no longer consistent or compliance with the requirements of the City. G. Amendment: A subdivider may propose an amendment to modify an approved preliminary plat. No changes in the approved plans, intensity or scope of the subdivision shall, however, be undertaken without prior approval of those changes by the City. Requests for amendment of a preliminary plat shall be processed according to section 10-5-2 of this chapter as the initial preliminary plat application and shall be subject to all requirements and standards of this title. Section 3. Section 10-5-3 of the Subdivision Ordinance (Filing and Review Procedures – Final Plat) is hereby amended to read as follows: 10-5-3: FINAL PLAT: A. Application: 1. After the preliminary plat has been approved, the subdivider shall prepare a request for final plat, as provided within this title, which shall be filed with the Zoning Administrator on an official application form. 2. The application shall be accompanied by a fee as provided in section 3-1-2 of this Code. 3. The Zoning Administrator may approve to process the applications for preliminary plat and final plat concurrently. 4. The final plat application shall not be considered complete unless the applicant has submitted construction plans as required by section 10-10-2 of this title approved and signed by the City Engineer. 5. The applicant shall submit a current Abstract of Title or Registered Property Certificate, along with any unrecorded documents, and an Opinion of Title. 6. The common interest community shall be considered as being complete for review only when there is compliance with all of the information requirements and the appropriate fees and escrows have been submitted. B. Technical Reports: 1. The final plat, including all information outlined in section 10-7-3 of this title, shall be submitted 7 as electronical files to the Zoning Administrator. 2. The Zoning Administrator shall instruct City staff, including but not limited to, the City Planner, City Engineer, Building Official, and City Attorney, and other agencies as appropriate, to prepare technical reports and provide general assistance in preparing a recommendation on the requested action to the City Council. C. Consistency with Preliminary Plat. The final plat shall strictly conform to the approved preliminary plat, including incorporation of all changes, modifications, and revisions required of the approved preliminary plat. D. Planning Commission Recommendation. Planning Commission review of a final plat application is not required; the City Council may refer the final plat to the Planning Commission for recommendation if it finds that the proposed final plat is substantially different from the approved preliminary plat or the requirements of the preliminary plat are not resolved. E. City Council Action: 1. The City Council shall take action on a final plat not more than sixty (60) days after the plat is filed with the City following receipt of an application completed in compliance with this title unless an extension of the review period has been agreed to by the applicant and the City. 2. Prior to recording of a final plat, the applicant shall execute a development contract, including establishment of required securities and payment of required fees and escrow monies, with the City as required by chapter 10 of this title. . 3. The subdivider and the designated representatives of the City shall sign the approved final plat within sixty (60) days of City Council approval unless otherwise specified as a condition of approval or provided for by a development contract otherwise approval of the final plat shall be considered void. 4. The City Council may grant an extension for execution of the final plat approval of up to one (1) year, provided that: a. The extension is requested in writing and filed with the Zoning Administrator at least thirty (30) days prior to the expiration of the initial final plat approval. b. The request for extension states facts demonstrating that a good faith attempt has been made to complete subdivision. c. The circumstances related to the preliminary plat approval, including compliance with official controls, has not changed to such extent that the preliminary plat is no longer consistent or compliance with the requirements of the City. d. The subdivider shall be responsible for providing securities based on current construction cost estimates and payment of city fees or cash escrows in accordance with the current fee schedule in effect at the time the final plat is recorded. 8 5. The City Clerk shall record the signed final plat, executed development contract, and any documents related thereto with the Wright County Recorder. 6. If the final plat is not approved, the reasons for such action shall be recorded in the official proceedings of the City and shall be transmitted to the applicant. 7. All decisions made by the City regarding a final plat shall be final, except that any aggrieved person shall have the right to appeal within thirty (30) days after delivery of the decision to the appellant, to the District Court in Wright County. Any person seeking judicial review under this ordinance must serve the City and all necessary parties, including any landowners, within the thirty (30) day period defined above. F. Amendment: A subdivider may propose an amendment to modify an approved final plat. No changes in the approved plans, intensity or scope of the subdivision shall, however, be undertaken without prior approval of those changes by the City. Requests for amendment of a preliminary plat shall be processed according to section 10-5-3 of this chapter as the initial preliminary plat application and shall be subject to all requirements and standards of this title. Section 4. Title 10, Chapter 2 of the Subdivision Ordinance (Procedures for Filing and Review) is hereby amended add the following section with subsequent sections renumbered accordingly: 10-5-4: COMMON INTEREST COMMUNITIES: Minnesota Statutes 515B.1-106 makes applicable the requirements and standards of the Subdivision Ordinance, Zoning Ordinance, and City Code to the common interest community form of property ownership subdivision; a proposed common interest community shall be subject to the following provisions: A. Application: 1. The subdivider shall prepare a request for a common interest community, as provided within this title, which shall be filed with the Zoning Administrator on an official application form. 2. The application shall be accompanied by a fee as provided in section 3-1-2 of this Code. 3. An application shall also be accompanied by electronic copies of a common interest community and supportive information in conformity with requirements of section 10-7-3 of this title. 4. The applicant shall submit a current Abstract of Title or Registered Property Certificate, along with any unrecorded documents, an Opinion of Title, and a legal description of the property to be subdivided. 5. The common interest community shall be considered as being complete for review only when there is compliance with all of the information requirements and the appropriate fees and escrows have been submitted. B. Technical Reports: 1. Electronic files shall be submitted to the Zoning Administrator of the following information regarding the common interest community, including: 9 a. All information outlined in section 10-7-3 of this title as determined applicable by the zoning administrator. b. Proposed declaration and bylaws prepared in accordance with Minnesota Statutes 515B, as may be amended. 2. The Zoning Administrator shall instruct City staff, including but not limited to, the City Planner, City Engineer, Building Official, and City Attorney, and other agencies as appropriate, to prepare technical reports and provide general assistance in preparing a recommendation on the requested action to the City Council. C. Planning Commission Recommendation. Review of a common interest community application by the Planning Commission is not required; the City Council may refer the common interest community application to the Planning Commission for recommendation if it determines such review is necessary. D. City Council Action: 1. The City Council shall take action on a final plat not more than sixty (60) days after the plat is filed with the City. 2. If accepted, the common interest community shall be approved by resolution, providing for the acceptance of all agreements for basic improvements, public dedication and other requirements as indicated by the city council. 3. If disapproved, the basis for any refusal to approve a common interest community shall be set forth in the proceedings of the council and reported to the person or persons applying for such approval within ten (10) days of the city council’s action. 4. All decisions made by the city council regarding a common interest community shall be final, except that any aggrieved person shall have the right to appeal within thirty (30) days after delivery of the decision to the appellant, to the District Court in Wright County. Any person seeking judicial review under this section must serve the City and all necessary parties, including any landowners, within the thirty (30) day period defined above. D. Special Assessments: When any existing special assessments which have been levied against the property described shall be divided and allocated to the respective units in the proposed common interest community, the Finance Director shall estimate the clerical cost of preparing a revised assessment roll, filing the same with the County Auditor, and making such division and allocation, and upon approval by the council of such cost, the same shall be paid to the City Clerk before the common interest community approval. E. Recording: 1. If the common interest community is approved by the City Council, the subdivider shall record it with the Wright County Recorder within sixty (60) days after said approval or approval of the common interest community shall be considered void, unless a request for time extension is submitted in writing and approved by the City Council; the subdivider shall, immediately upon recording, furnish the City Clerk with evidence of the recording. 10 2. No building permits shall be let for construction of any structure on any lot in said common interest community plat until the City has received evidence of the common interest community plat being recorded by the Wright County. F. Amendment: Amendments to the declaration of an existing common interest community or further subdivision of units within an existing common interest community may be proposed at any time and shall be processed according to section 10-5-4 of this chapter as the initial common interest community application and shall be subject to all requirements and standards of this title. Section 5. This Ordinance shall be effective upon its passage and publication according to law. (Remainder of page intentionally blank signatures follow) 11 ADOPTED by the Otsego City Council this 28th day of July, 2025. MOTION BY: SECONDED BY: IN FAVOR: OPPOSED: CITY OF OTSEGO __________________________________ Jessica L. Stockamp, Mayor ATTEST: __________________________________ Audra Etzel, City Clerk 1 CITY OF OTSEGO COUNTY OF WRIGHT STATE OF MINNESOTA SUMMARY OF ORDINANCE NO.: 2025-05 AN ORDINANCE AMENDING SUBDIVISION ORDINANCE PROCEDURES. NOTICE IS HEREBY GIVEN that on July 28, 2025, Ordinance 2025-05 was adopted by the City Council of the City of Otsego, Minnesota. NOTICE IS FURTHER GIVEN that the ordinance adopted by the City Council amends Subdivision Ordinance addressing application procedures related to submission requirements, appeals, and CIC plats. ADOPTED by the Otsego City Council this 28th day of July, 2025. CITY OF OTSEGO Jessica L. Stockamp, Mayor ATTEST: Audra Etzel, City Clerk Pursuant to Minnesota Statutes 412.191, Subd. 4 and 331A.01, Subd.10, this Ordinance is published in summary form. Complete copies of the ordinance are available for inspection by contacting the City Clerk, Otsego City Hall, 13400 90th Street NE, Otsego, Minnesota 55330 during regular office hours.