1997 Comprehensive Plan -Adopted January 1997COMPREHENSIVE
PLAN
Planning Tactics
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JANUARY 1997
INTRODUCTION
CREDITS
PLANNING PROCESS
PROFESSIONAL PERSPECTIVES
-1
..
COMMUNITY VIEWS
CHECKLIST
UITY M
COMPREHENSIVE
PLAN
NAC
Planning Tactics
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JANUARY 1997
NORTHWEST
ASSOCIATED
COMMUNITY PLANNING
2 January 1997
TO: Otsego Mayor and City Council
LTANTS
MARKET RESEARCH
RE: Otsego -Comprehensive Plan Update: Tactics Study Report
FILE NO: 176.14
Ladies and Gentlemen:
With the beginning of the new year and the seating of a new City Council, the submission
of the Comprehensive Plan Update Tactics Study report is well timed. This document
provides two critical perspectives which the new Council should take into account as it
undertakes its work and decision -making in the months ahead.
Presented herein are the "community views" which reflect the opinions and concerns of
City officials and staff. Also provided is a "professional perspective" which attempts to
highlight fundamental issues and recommends a number of immediate actions for the
Council to consider.
This report needs to be throughly read and digested, especially on the part of the Mayor
and City Council. To this end, representatives of our office are hopeful that we can meet
with you in the near future to discuss the Tactics study and the balance of the
Comprehensive Plan Update process and work.
Respectfully yours,
NORTHWEST ASSOCIATED
e
LTP�,NTS, INC.
David R. L�t`ht, AICP
President
pc: Otsego Commissions and Committees
Otsego Staff and Consultants
Robert W. Kirmis, AICP
Senior Planner
5775 WAYZATA BOULEVARD, SUITE 555
ST. LOUIS PARK, MINNESOTA 554 16
PHONE 6 1 2-595-9636 FAX 6 12-595-9837
TA B L E O F C O N T E N T S
Introduction.............................................................................................. 1
Credits..................................................................................................... 2
PlanningProcess.................................................................................... 5
CommunityViews.................................................................................... 9
Introduction................................................................................... 9
Background................................................................................... 9
Comments/Opinions/Objectives................................................... 11
Comparisonto 1991..................................................................... 27
Conclusion..................................................................... 0 a 0 0 0 a 0 0 0 a 0 028
Professional Perspectives....................................................................... 29
Introduction................................................................................... 29
CommunityDivision...................................................................... 29
SanitarySewer............................................................................. 30
Agricultural Preservation ..........................................................Boom 32
Moratorium and Deadline............................................................. 33
Checklist................................................................................................... 34
OTSEGO
COMPREHENSIVE PLAN UPDATE
PLANNING TACTICS
INTRODUCTION
I N T R O D U C T I O N
A number of factors have led the Otsego City Council to a decision to update the City's
1992 Comprehensive Plan. The addition of property from Frankfort Township and the
detachment of property to the City of Albertville is one very important reason for pursuing
a Comprehensive Plan Update. Another factor suggesting the need for a plan revision is
the near total developed status of the City's immediate urban service area and the
question if the boundary of this area should be increased. Questions have also surfaced
on the future of lands abutting the City of Albertville and the coordination of development
which is projected in that community. Paramount, however, is the sewer issue and the
potential for City -owned treatment and collection facilities which differs from that upon
which the current Comprehensive Plan is based. All the foregoing issues point to an
uncertainty which needs to be resolved through a comprehensive re -look at the
community.
This report, which is part of the initial data gathering phase of the planning process, is
intended to set the stage for the work which lies ahead. In this regard, a number of points
identified in this document require discussion and a consensus on direction before the
planning process can proceed into the actual plan preparation effort. It is therefore critical
that this report be reviewed and discussed in detail at the earliest opportunity.
In the material which follows, those persons contributing their opinions and insights to this
report are first identified. This is followed by a summary of the planning process which is
being undertaken. This information will hopefully provide an understanding on the part
of all parties who are to be involved. The third section of the report conveys the
"community views" which were gained through an individual interview process. This
material provides a listing of topics which City leaders believe to be the primary matters
which the Comprehensive Plan needs to address. Of note is that this chapter also
compares the topics raised as part of the 1989 Tactics study to that of the current study.
The fourth section is entitled "Professional Perspectives". A presentation is made those
items which the professional planner considers to be the fundamental issues to be
resolved as well as several recommendations for immediate action. The final section of
the report identifies the major issues and objectives which were raised in the 1989 Tactics
study and the progress made on these topics.
The need for all involved parties to critically review and consider the information herein
provided is again emphasized.
OTSEGO
COMPREHENSIVE PLAN UPDATE
PLANNING TACTICS
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�".
CREDITS
C R E D I T S
So as to insure a City's growth management program and its Comprehensive Plan
component are truly reflective of the community's interests and objectives and is
responsive to constituent concerns, the work must be directed from the outset by the views
and opinions of officials, citizens, and property owners. As one of the initial phases of
Otsego's current Comprehensive Plan Update, a very broad cross-section of individuals
were consulted to gain this local perspective and orientation. It is believed that these
individuals provided the needed local insight and direction which was being sought. This
information, when combined with the pending community survey and technical community
inventory, will form the basis for plan formulation.
The following are the individuals who contributed their time and comments which made this
Planning Tactics report possible.
OTS EGO
Mayor
Larry Fournier
City Council Members
Suzanne Ackerman
Mark Berning
Vern Heidner
Virginia Wendel
Planning Commission
Jim Kolles
Arlene Nagel
Richard Nichols
Bruce Rask
Ing Roskaft
Carl Swenson
Park and Recreation Committee
Tom Baillargeon
Economic Development Authority Advisory Committee
Liz Wilder
Leroy Lindenfelser
Heritage Preservation Committee
Joy Swenson
COMPREHENSIVE PLAN UPDATE
PLANNING TACTICS
2
C R E D I T S
City Staff
Elaine Beatty, City Clerk/Zoning Administrator
Phyllis Cokely, Finance Director
Judy Hudson, Deputy Clerk
Carol Olson, Secretary
Jerry Olson, Building Official
Larry Koshak, City Engineer
Andrew MacArthur, City Attorney
Our sincere appreciation is offered to the foregoing individuals for their valued
participation and opinions.
OTS EG O
COMPREHENSIVE PLAN UPDATE
PLANNING TACTICS
3
PLANNING PROCESS
COMPREHENSIVE PLANNING PROCESS
VISIONING / PLA
t
PLANNING INVENTORY
Social - Physical - Economic - Financial
Profile
POLICY PLAN
Inventory Issues M4
Analysis � Summary
am; �
Goals &
Policies
PROGRAMS -PLANS - PROJECTS
IMPL
ATION
P LAN N I N G PRO E S S
The City government of Otsego serves to maintain and enhance the living and working
environment of the residents and labor force. This is accomplished by providing basic
services plus establishing an organized setting in which day-to-day activities take place.
Central to this management function is the structuring and ordering of change which will
take place plus the programming of policies which guide performance and actions of both
the private and public sectors. The primary tool which the City has to accomplish these
responsibilities is the Comprehensive Plan.
The Comprehensive Plan Update which was budgeted for 1996 and 1997 is responsive
to the advanced current and future management needs of the City. Besides addressing
the typical land use concerns, transportation, community facilities and services, economic
development, and natural environment are primary topics which will also be included.
Such coverage provides a truly "comprehensive" perspective of the physical environment
which the City serves to direct.
The completion of a Comprehensive Plan follows a basic problem solving process. This
process is graphically depicted on the diagram immediately preceding this chapter. In
essence, this process is a progressive, step-by-step decision -making effort. It begins with
problem identification. Subsequently, problem resolutions are formulated. Next, actions
necessary for achieving these solutions are selected. Finally, work efforts necessary to
accomplish the stated ends are programmed and pursued.
While simplistic in its basic form, the comprehensive planning process currently being
undertaken by Otsego is a highly detailed and complex work effort. Moreover, it is
important that all involved understand this process and the various aspects of which it is
comprised. It is only through such an appreciation that the logic and purpose of the
various elements of work and effort become meaningful and can therefore contribute to
a useful end product.
The first phase of the current Otsego Comprehensive Plan Update involves data gathering
and evaluation. Two specific sub -tasks will comprise this phase of work. The first task,
represented by this report, is termed "Planning Tactics". As the name implies, this task
involves basic organization of the process to be followed, as well as an educational
function directed at informing participants of the purpose, content, and scope of the
undertaking. The Planning Tactics also serves to provide an initial community based focus
for the planning effort. Through individual meetings with City officials, staff, resident and
business persons, a perspective of community concerns and desires are identified. These
locally based opinions are intended to direct work efforts and attention to those matters
which are viewed of primary importance to and by the community. Such an orientation to
the plan is critical if the final product is to be meaningful and responsive and result in a tool
which will be used as a decision -making guide.
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PLANNING TACTICS
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P L ANN ING P R O C E S S
The second task of Phase I is the technical data base inventory. This will involve the
assembly of all relevant factual information generally organized on the basis of social,
physical, and economic matters. This data base is a staff and consultant responsibility
which provides a statistical and historic perspective of the community. As such, it serves
as another source of problem and opportunity identification, as well as a basis upon which
to orient plans and proposed actions. Due to budget directives and recent City Council
membership changes, which postponed the initiation of the Planning Tactics work, the
Inventory work has already begun.
Upon completion of data and background assembly, Phase II of the process will involve
analysis of information and the summarizing of resulting issues and opportunities. This
summary establishes direction for the planning effort as well as criteria upon which the
final planning effort can be evaluated.
Phase III of the comprehensive planning process constitutes actual plan formulation.
There are three sub -components of this phase. The first and fundamental plan element
is the "Policy Plan". This will include a statement of ends or goals to be achieved. The
means whereby these are accomplished will then be defined in specific objective and
policy statements intended to guide and direct both public and private actions. The Policy
Plan is viewed as the "heart" of the Comprehensive Plan which is being prepared. The
standards and criteria offer City decision -makers the basis upon which to evaluate and
program actions. Moreover, the policies provide flexibility plus ongoing applicability. As
events change or unanticipated situations arise, the Policy Plan provides ongoing
guidance which is not always the case with static graphic or map type plans.
The Concept Plan is a second plan element. This will be an initial, graphic interpretation
of the Policy Plan which sets forth in general terms the physical layout and gung graphic
principals for development. Along with the Policy Plan, the Concept Plan adds flexibility
to the Comprehensive Plan and related decision -making. Such plans can be readily
adapted to most matters which come before the City and therefore offer a long lasting
reference.
The final and most detailed plan element will be the Development Framework. Founded
upon and directed by the Policy and Concept Plans, the Development Framework will
organize the physical aspects of Otsego into four categorical plans: natural environment;
land use; transportation; and community facilities and services. A key element also
guiding the Development Framework and notably the Land Use Plan is economic base
data. Such perspective aids in providing realistic and practical assignments of land use
by type and also allows for proper phasing of development and land absorption.
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PLANNING TACTICS
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P LAN N I N G PROCESS
So as to make the categorical plans more direct and meaningful, the final portion %J the
Development Framework will be a chapter termed Planning Districts. The community will
be geographically divided into neighborhoods. Within these sub -areas of the City, the
natural environment, land use, transportation, and community facilities and services plans
are combined and consolidated. This allows for a quick summary and comprehensive
picture of actions and directions which are to take place in any given area of the City.
The final portion and phase of Otsego's Comprehensive Plan Update will be the
programing of implementation efforts. Based upon discussions with City officials, projects
and actions will be prioritized as a means to organize and focus work which will lead to
accomplishing the plans which have been formulated and approved. The initial
implementation program is intended as an example which should be periodically reviewed
and updated by the City as part of the ongoing practice of growth management.
The diagram on the following page organizes the various phases and tasks of the Otsego
Comprehensive Plan Update into a time schedule of activities. While technical work is not
anticipated to cause problems, community review and consideration may require additional
time beyond that which has been allotted. If such a situation proves to be the case,
adjustments to the schedule should be made. Such possible action and the allocation of
additional time for communication and participation is suggested if necessary, in order to
build the broadest possible basis of support for the plans which are prepared. Through
community -wide awareness and support of the Comprehensive Plan, accomplishing the
ends it sets out to achieve will be substantially enhanced.
A final note needs to be made regarding the continuing nature of the comprehensive
planning process and specifically, the Otsego Comprehensive Plan Update. Planning is
ongoing as is change. As a result, it can be expected that as special issues or subjects
arise, detailed plans expanding upon the base provided by the Comprehensive Plan will
be necessary. Furthermore, as time progresses and situations change, the
Comprehensive Plan should be updated and amended on an incremental basis to insure
it is responsive as well as reflective of City policy. If continually approached in such a
fashion, the plan will remain current and the central, vital core of Otsego's growth
management program.
OTS EGO
COMPREHENSIVE PLAN UPDATE
PLANNING TACTICS
CITY OF
OTSEGO
COMPREHENSIVE PLAN UPDATE
PRELIMINARY PROJECT SCHEDULE
Sept.
Oct.
Nov.
Dec.
Jan. I
Feb.
Mar. jApril
May
I June I
July
Aug.
PLANNING
=_ '_ =
•
TACTICS
m
•
INVENTORY
=8
{
T
y
DEVELOPMENT
FRAMEWORK
POLICY PLAN
CONCEPT PLAN
mr
•
DISTRICT PLANS`
■
•
IMPLEMENTATION
1996
1997
Consultant Work
Community Review
� Preliminary Report
• Final Report
0
Public Hearing
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r.
COMMUNITY VIEWS
C O M M U N I T Y V I EWS
INTRODUCTION
The current Comprehensive Plan updateunique situation, given the relatively short
period of time since the last update which took place in 1989 through 1991. While a
primary purpose of the Planning Tactics process is to identify current community issues,
concerns and objectives, having conducted a similar study only five years prior offers an
opportunity for comparison and an evaluation of how community views have changed.
Also of note, is the fact that the 1989 Planning Tactics Report and its findings provides
insight into actions which were proposed and subsequently undertaken.
So as not to loose focus, however, the first portion of this Chapter will be devoted to the
comments and opinions of various City leaders and staff which were received through the
interviews conducted in October and November of 1996. As part of the second portion of
this Chapter, a comparison of current issues and objectives will be made with those
generated in 1989.
BACKGROUND
As demonstrated by past comprehensive planning work completed by Otsego, the success
of a plan is highly dependent upon the plan being responsive to the issues and objectives
of the community. In such cases, the plan is more commonly relied upon for direction and
decision -making. Achieving a positive result mandates community and public official
involvement from the beginning of the process. The planning tactics procedure is one of
several means whereby such input is accomplished. Occurring simultaneously with the
initiation of other work, the planning tactics effort focuses and directs the plan toward
specific community concerns from the outset of the activity.
In proceeding along the lines of the fundamental planning process as discussed above,
as well as in the preceding chapter, interviews with community representatives and
officials were conducted on 30 October and 15 November 1996. The twenty individuals
who were interviewed are cited in the Credits Section of this report.
In order to conduct comparisons, the framework for comments from the community
representatives was generally the same as that utilized in 1989. Prior to the individual
interviews, an outline was provided for the purpose of allowing each person to organize
their thoughts and comments. This outline structured possible comments in the following
format:
OTSEGO COMPREHENSIVE PLAN UPDATE
PLANNING TACTICS
C O M MU N I TY VIEWS
A. Natural Resources/Environmental Protection
1. Storm drainage
2. Prime agricultural preservation
3. Pollution
B. Land Use
1. Agricultural
2. Residential
a. Housing type
b. Rate of growth
3. Commercial
4. Industrial
5. Institutional (public/semi-public)
C. Transportation
D, Community Facilities and Services
E. Economic Development
F. Public Finance (Tax Base/Service Costs)
The above listing was also utilized as it is the anticipated format for the balance of the
Comprehensive Plan update. It therefore will also be the primary structure for the
presentation of Tactics Study findings which follow.
As will be noted later in this Chapter, the current Tactics Study produced several selected
issues with which a majority of the participants were preoccupied. The following, however,
were considered to be the most significant and fundamental issues currently confronting
the City.
A. Sanitary Sewer Service
B. Agricultural Preservation
As such, these matters will be major concerns as part of the Comprehensive Plan update.
This is, however, not to over -shadow other matters which were addressed and are also in
some cases related and are significant factors shaping the future of Otsego. As a result,
all the issues raised will be addressed within the context of the outline provided above.
Finally, prior to proceeding with a review of the comments received within the context of
the various topic areas, some additional explanations and qualifications are required. In
the paragraphs which follow, the comments which were received have been generalized
so as not to credit any one individual with a particular statement or opinion. It should be
OTSEGO COMPREHENSIVE PLAN UPDATE
PLANNING TACTICS
C O M M U N I T Y V I EWS
noted, however, that there was a general lack of consensus among those interviewed on
the sanitary sewer service and agricultural preservation issues noted above. While such
disagreement is not totally uncommon, it does raise some concern. Note should also be
made that the focus of the discussion and hence this chapter of the Tactics Report is
negative, dwelling on the problems of the community. This negative theme and
characterization of the community should not be interpreted as the prevailing opinion of
the City. To the contrary, the community leadership and staff view Otsego as a unique and
quality living environment. The objective in identifying Otsego's problems is to insure that
these matters are properly addressed and resolved so that the benefits offered are
maintained and increased.
The identification of each and every issue raised as part of the interviews with community
representatives also is not attempted by this report. Such would be beyond the scope and
purpose of this effort. The issues which are raised are a broad categorization of topics
receiving attention. Identifying and dealing with this more basic framework of concerns will
facilitate the organization of responses and the preparation of plans dealing with specific
and individualized community concerns.
COMMENTS/OPINIONS/OBJECTIVES
1. Primary Issues
A. Sanitary Sewer Service
Undoubtedly, the primary issue of discussion among interview participants relates
to the issue of sanitary sewer service in the community. This is not to say, however,
that a general consensus on the issue was offered. In fact, a general
disagreement as to the need, timing and location of such service was conveyed.
The provision of possible sanitary sewer service obviously has far reaching
environmental, land use, and financial impacts. As such, discussions of service
possibilities were interconnected to varied topical categories. As in the case of the
1989 Tactics interviews, a primary concern of nearly every person interviewed was
the threat of ground water pollution due to septic system failure. Evidence exists
that such occurrence is a realistic situation due to community soil conditions, water
tables, and development densities. While the density of City development (i.e., one
acre lot sizes) offers some advantages, it also serves to intensify the potential
pollution problem and escalate possible correction costs.
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COMPREHENSIVE PLAN UPDATE
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11
G OMMU NITY VIEWS
Recognizing these concerns, the City, as part of its inal Comprehensive Plan
effort has focused and directed its development within a service area consistent
with possible sanitary sewer extension from the City of Elk River. Following the
adoption of the 1992 Comprehensive Plan, however, Otsego was advised by the
City of Elk River that excess sewer capacity would not be made available to the
City. Resultantly, the unavailability of such service has rendered a basic premise
and growth strategy of the City's existing Comprehensive Plan invalid.
In response to this condition, City officials have begun investigating an alternative
source of sewage treatment. Specifically, the City Council has initiated efforts with
former Frankfort Township and the City of Dayton regarding the possible
construction of a waste water treatment facility in the southeastern area of the
community.
Beyond the treatment facility issue is the need to resultantly define the placement
of truck facilities for optimum service capability and lateral extension, system
funding methods, and the formulation of regulations necessary for system
installation and operation. To some extent, these issues have been addressed in
a feasibility report which has been prepared.
As noted previously, the sanitary waste issue is seen as the highest priority concern
of the City. Such issue identification has a direct relationship to several other high
priority issues which have been identified including ground water contamination,
increased tax base, and land use diversification.
Such an emphasis on providing sanitary sewer service is considered highly
appropriate, given the fact that a "do nothing" approach could be catastrophic in
terms of general public health as well as on an individual financial basis.
Related to the issue of sanitary sewer (and water) service was the need to establish
a strong and diversified tax base in the City. Currently, the predominant agricultural
and single family residential uses in the commuity provide limited financial
resources from which the City can draw upon to respond to the needs of its
residents. Thus, an urgent need was conveyed to strengthen the City's tax base
through the pursuit of commercial and industrial land uses.
While it was generally conveyed that sanitary sewer service is needed in the
commuity a great difference of opinion was offered in terms of how, where and
when such service should be provided. Specific opinions include: 1) a single
treatment facility in the southeast area of the City; 2) a single treatment facility in
the central portion of the City; 3) numerous package treatment plants scattered
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COMPREHENSIVE PLAN UPDATE
PLANNING TACTICS
C O M MU NITY VIEWS
throughout the City. Such lack of consensus presents an obstacle to the City
comprehensive effort and the geographical delineation of future sanitary sewer
districts.
B. Agricultural Preservation
A basic premise of the City's initial Comprehensive Plan effort was the preservation
of prime agricultural lands within the community. Consistent with such community
philosophy was the adoption of a land use plan and various policies which
specifically encourage the preservation of prime agricultural lands within the
community.
Since the plan's adoption, question has been raised as to the appropriateness of
the long term preservation of the City's prime agricultural lands. Such sentiments
were brought to the forefront in the City's recent consideration of its animal feedlot
regulations which currently prohibit the establishment of new animal feedlots within
the City.
Several interview participants felt that the current animal feedlot restrictions create
a degree of uncertainty for community farmers. In an effort to "recoup" lost
agricultural use rights, an increase in residential development rights within
agricultural zoning districts was suggested (i.e., four per forty development rights).
The Tactics interviews revealed a relative split of opinion in terms of the need to
preserve and protect agricultural activities within the City. Many of those persons
inteviewed stressed that agricultural uses should continue to be preserved and
protected and that urban development should not be allowed to infringe upon such
activities.
In contrast, many persons interviewed felt that the long term preservation of
agricultural activities in the City is not a realistic growth management approach and
that such uses should only be viewed as a temporary or interim uses until such time
as development occurs. This is not to say that growth staging efforts should be
abandoned or disregarded.
This different of opinion and conveyed degree of "agricultural uncertainty" will need
to reach consensus as the Comprehensive Plan effort proceeds.
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C O M M U N I TY V I EWS
2. Other Issues
Aside from the primary issues of sanitary sewer service and agricultural presentation,
several additional items of issue were cited by interview participants. For organizational
purposes, these items have been categorized as follows:
A. Natural Resources/Environmental Protection
The vast majority of environmentally related comments related to that of community
septic systems and their potenital for failure. While the recently adopted "point of
sale" ordinance has been viewed as highly positive, it was indicated that further
efforts are needed to address septic system (and ground water contamination)
concerns. Specific suggestions included the placement of additional monitoring
wells in the City and commuity education efforts in the area of septic system
maintenance.
Another area of concern of many persons interviewed related to natural
resource/environmental protection was that of storm drainage. While addressed
to some degree, such problems continue to exist as a result of the community's
continued transition from a "rural" to an urban area. Since the adoption of Otsego's
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COMPREHENSIVE PLAN UPDATE
14
PLANNING TACTICS
C O M M U N I T Y V I EWS
initial Comprehensive Plan, the City has taken several steps to address its storm
drainage plan. These include the mandatory preparation of grading and drainage
plans (as part of subdivision applications), storm water impact fees, and finally, the
preparation and adoption of a community storm drainage plan. While all of these
steps are considered highly positive, interview participants expressed concern over
the ability of the City to implement its storm water plan due to a lack of funding.
B. Lancl Use
Various aspects of land use were a predominant concern of those taking part in the
interview process. Otsego's need and ability to accommodate future growth was
a topic universally raised by all inteview participants. While diverse opinions were
provided, it was generally concluded that the City will undoubtedly receive
significant growth pressures in the future. In this regard, the City is considered to
be at a "crossroads" in terms of its land evolution.
So as to provide adequate coverage of the land use matters raised, they will be
comprehensively addressed and to such end have been divided into agricultural,
residential; commercial; industrial; institutional sections.
OTS EG O
1) Agricultural
Interview participants were almost evenly split in their opinions of
maintaining the City's rural character and preserving agriculture. While
numerous interview participants believe Otsego should continue to be a
"rural" community and several others believe that it is inevitable that Otsego
will transform into an "urban" community and should be planned accordingly.
Several interviewed participants believe that agricultural uses should be
considered temporary and that financial investment (i.e., large scale
feedlots) should be discouraged. This position was reflected in the City
Council's recent adoption of an amendment to its animal feedlot regulations.
Such amendment prohibits the establishment of new animal feedlots (greater
than ten animal units) within the City.
Other interview participants, however, feel that the basic premise of the
City's initial Comprehensive Plan of preserving agriculture remains valid and
that nothing has physically occurred to warrant a change from such position.
In this regard, it was suggested that the western one-half of the community
(west of Nashua Avenue) continue to be reserved for long term agricultural
use.
COMPREHENSIVE PLAN UPDATE
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PLANNING TACTICS
OTS EGO
C OMMU NITY VIEWS
This difference of opinion (in long term community vision) is considered a
critical issue which for which some degree of consensus must be reached
for the Comprehensive Plan effort to proceed.
2) Residential
A common topic of discussion of all persons interviewed was that of housing.
Strong feelings were voiced that additional upscale housing should be
pursued. Such opinion reflects a position that an overabundance of low end
housing choices currently exist in the community. Such opinion was further
accompanied by notations of the tax advantages of higher income housing.
In terms of location, several persons interviewed suggested that such
"upscale" homes be encouraged in the City's river corridor areas.
Specifically, it was suggested that such housing type be promoted in the
area north of County Road 39 and west of Nashua Avenue.
To increase the density of such high end development and its assumed tax
advantages, suggestion was made to reduce the minimum lot size
requirement in the Wild and Scenic District from 2.5 acres to 2 acres.
Another related suggestion was that golf course development be
encouraged as a means of attracting "upscale" residential development into
the City.
Many comments received were related to the City's current lack of housing
choices. Due in part to a lack of sanitary sewer service, housing choices
within the City are curently limited to single family detached units. So as to
accommodate the needs of all persons, it has been suggested that
alternative housing choices (i.e., multiple family) be pursued.
An additional item of issue was that of property maintenance. While a vast
majority of community residents take great pride and in the maintenance and
upkeep of their properties, a number abuse the situation by literally creating
junk yards. While such situations are regulated by City ordinances,
enforcement of such ordinances continues to be a problem.
COMPREHENSIVE PLAN UPDATE
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16
C OM MUNITY VIEWS
3) Commercial
A wide variety of comments were received during the interviews on
commercial development. Central to such comments were, however, an
indication that sanitary sewer (and water) service is needed to attract large
scale, high quality commercial development. Such uses were viewed as
desirable for both their contributions to the City's tax base and in response
to the commercial business needs of area residents.
Some difference of opinion was offered in regard to the pursuit of such
developmentI While several interview participants felt the City should take
a proactive approach to attracting commercial uses, others held an opinion
that the market will dictate when the timing for such development is
appropriate and that a reactive approach should be taken.
In terms of location, it was generally indicated that the County Road 42 and
County Road 39 intersection area should continue to be the retail "center"
of the community. Some comments were made, however, that the Highway
101 corridor and County Road 19 area north of Albertville should also be
considered for commecial development if opportunities arise.
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OTSEGO
C O M M U N I T Y V I EWS
Many persons interviewed were highly supportive of the City's current
performance standards for commercial development and stressed the need
for continued high quality development.
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OTS EGO
C O M M U N I T Y V I EWS
4) Industrial
As in the case of commercial development, interview participants offered
varied comments on industrial uses.
Of primary issue was the City's need to provide sanitary sewer service to
attract such development. In this regard, it was indicated that such service
to the Highway 101 corridor area should be considered a high priority.
In terms of location four primary areas were cited where industrial uses
should be encouraged: 1) the Highway 101 corridor between County Roads
39 and 42; 2) the Otsego Industrial Park (in southwest corner of the City); 3)
the former Frankfort Township territory east of Highway 101; and 4) the
County Road 37/19 intersection area north of Albertville.
The topic of industrial development will be further commented upon as part
of the economic development subsection of this chapter.
COMPREHENSIVE PLAN UPDATE
PLANNING TACTICS
19
C O M M U N I T Y V I E W S
5) Institutional
Faces comprising this aspect of land uses will for the most part be
addressed under the commuity facilites portion of this chapter.
C. Transportation
Generally speaking, positive comments were received regarding the City's street
system. The recent upgrade of the Highway 101 corridor is viewed as highly
positive and an enticement for future business location (and associated tax base).
In regard to maintenance, no major problems on either state, county, or local
roadways within the City were cited by interview participants.
While most aspects of the City's street system were viewed as positive, some
concerns were cited in regard to excessive vehicular speeds on City roadways and
the need for signalization at the 85th Street/Odean Avenue intersection.
Related to the City's street network, is the pedestrian transportation system. In this
regard, comment was made that convenient and safe pedestrian crossings need to
be provided at primary roadway intersections.
In terms of traffic volumes, some comments were received regarding the County
Road 19 corridor. Specific comments was offered regarding the impact that a
significantly sized retail center within Albertville (at k94/County Road 19
intersection) may have upon existing traffic volumes of the corridor.
Additional comments were offered in regard to 70th Street which is proposed for
future upgrade in the Wright County Transportation Plan. Such future upgrade
should not go unrecognized in the future planning efforts.
D. Community Facilities
Aside from sanitary sewer service, a very broad range of subjects comprise
community facilities. The additional elements which comprise this public
responsibility are individually addressed below.
OTSEGO
11 Water Service
While sanitary sewer service was the topic of major discussion, comments
were also offered by inteview participants in regard to public water service.
COMPREHENSIVE PLAN UPDATE
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20
OTS EGO
C O M M U N I T Y I E W S
Like sanitary sewer service, public water service is viewed as desirable in
enticing commecial/industrial development to the City (due to fire code/water
usage requirements). In this regard, specific suggestion was made that the
City pursue the acquisition of a site for future water tower construction.
2) Public Buildings
The vast majority of inteview participants expressed positive comments in
regard to Otsego's City Hall and its ability to accommodate its City
government activities. Some negative comments were, however, received
regarding the City maintenance building. Specific concern was voiced over
the quality of the structure and the example it sets for the commuity.
While not critical at this point, several persons interviewed expressed a need
to investigate the establishment of a City police department and a joint fire
hall substation (with the City of Elk River). Also indicated was a need for a
community library, and swimming pool.
While not debating the issue of need, some interview participants expressed
concern over the City's ability to finance addiitonal commuity facilities.
In terms of future planning, it was suggested that a Comprehensive Plan for
City Hall site be prepared which identifies the future location of City buildings
(i.e, post office, library, etc.).
While likely out of the City's control, some persons interviewed expressed
an opinion that a City post office should be pursued as a means of
establishing a community identity.
COMPREHENSIVE PLAN UPDATE
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21
OTS EGO
C O M M U N I T Y V I E W S
3) Parks and Recreation
While the physical recreational facilites and programs are generally a matter
of pride and compliment, some concern was voiced by interview participants
that provided opportunities exceed current need. In contrast, other persons
interviewed felt that a need exists for addiitonal recreational programs within
the City.
Although the Prairie Park and Otsego County Park were recognized as
having adequate physical facilities some concern was cited in regard to the
accessibility of such parks and the need for smaller, more easily accessible
neighborhood parks. Other persons interviewed, however, felt that no
additional parks within the City are necessary at this time and that larger
residential lot sizes (i.e., one acre) provide ample land area for recreation.
COMPREHENSIVE PLAN UPDATE
22
PLANNING TACTICS
i P v
i
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■tiw i��l 1�� .�li IIi �id � III ri
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Otsego Prairie Park
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G O M M U N I T Y V I EWS
6) Historic Preservation
While limited opportunities exist within the City, the importance of preserving
the community's heritage was stressed by a number of persons interviewed.
In this regard, it has been suggested that the City (and Heritage
Preservation Committee) continue its historic preservation efforts.
E. Economic Development
Without exception, all persons inteviewed expressed a need to expand the City's
tax base and highlighted the Interstate 94 and Highway 101 corridor areas as prime
opportunities for such tax base to be established.
Conflicting opinions were offered as to whether sanitary sewer and water service
should be pursued at this time to entice development. Several persons interviewed
held a position that the "market" will dictate when development should occur and
that the City should simply wait until such demand exists. Others felt that such
service should be pursued immediately.
OTS EGO
COMPREHENSIVE PLAN UPDATE
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24
C O M M U N I T Y V I EWS
The majority of interview participants feel that the City should demand high quality
development even if such positon results in the loss of some development
proposals.
Also related to the issue of economic development is the number of home
businesses within the community which have outgrown their residential properties
and could otherwise potentially contribute to the City 's tax base. In this regard, it
was suggested that an opportunity area be povided for possible business
relocations. Also noted by interview participants was a concern over the lack of
code enforcement imposed on home businesses (illegal outdoor storage, etc.).
F. Administration/Public Finance
OTS EGO
1) Staffing
Numerous comments were received from elected officials and city staff in
regard to City administration. Several persons interviewed believe that City
staff has insufficient personnel and is in need of a designated administrator.
In terms of staff and consultant performance, a mix of views was indicated
ranging from strong support to terminating the employment of all those
involved.
2) Commissions/Committees
As in the case of City staff, varied opinions were offered in regard to the
performance of the City's elected and appointed officials. Most persons
interviewed cited general communication problems and a lack of role and
responsibility understanding as areas where improvement is desired. Also
cited as a problem was an over -reliance on consultants by City officials.
Others felt such experts were not utilized to the extent needed with too much
reliance on volunteer efforts.
Nearly all persons interviews felt that City taxes are excessive. In response
to such sentiment, a broadening of the City's tax base and imposition of
"user fees" were suggested as means of addressing the problem. A number
of interview participants also suggested that farms be protected from
increased taxation.
COMPREHENSIVE PLAN UPDATE
25
PLANNING TACTICS
OTSEGO
C OMMU NITY VIEWS
4) Development Regulations
Generally speaking, interview participants expressed satisfaction with the
City's development regulations. Some concerns which were cited, however,
included dissatisfaction with the length and expense of the City's
development process. Additional concern was expressed over "excessive"
park dedication fees.
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26
C O M M U N I T Y V I E W S
COMPARISON TO 1991
While the majority of the topical issues raised in the 1991 Tactics report continue to be a
focal point among community representatives, there were also several topics which were
identified in 1991 but received little or much less attention in the current study. The
following is a listing of such topics.
Topics Common to 1991 and 1996 Interviews
Unchanged Views
• Pursuit of sanitary sewer service/ground water contamination concerns.
• Correction/management of storm drainage.
• Need for diversified and increased tax base.
• Enforcement of property maintenance requirements.
• Need for planned and managed growth.
• Need for easily accessible neighborhood parks.
• Establishment of a community identity.
Changed Views
• Need to preserve agricultural lands.
Topics Identified in 1991 But Not 1996 Interviews
• Need to upgrade Highway 101.
• The desire for a new City Hall.
• The establishment of independent community control.
OTSEGO
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C O M M U N I T Y V I E W S
• MSA funding.
The need to establish inter -community relations.
Undoubtedly, a reason for some items not reoccurring as part of the current discussion are
advancement or resolution of problems previously identified. Incorporation, for example,
has allowed the City to qualify for MSA funds. Additionally, the recent completion of the
Highway 101 upgrade has eliminated the previous desire to improve the roadway.
One issue of extreme interest relates to the preservation of prime agricultural lands. While
such preservation was considered an utmost priority in the 1991 interviews, such
continued preservation has been questioned in the current 1996 interviews. These
differences in viewpoint likely relate to the continued influence of urban development and
evolution of the City.
CONCLUSION
The extent and scope of comments and discussions offered by individual City official and
staff interviews speaks positively for the community and the attention given to the desired
improvements. There is an evident appreciation of the problems which Otsego confronts.
Simultaneously, there is an equal commitment to resolving issues and preparing for an
improved future. Of particular note is a general lack of consensus regarding sanitary
sewer service and agricultural preservation issues. In order for the Comprehensive Plan
to proceed and function as intended, general agreement on these issues will be
necessary.
These insights and objectives are of major benefit at the outset of the Comprehensive Plan
Update project. Directions as to what needs to be addressed and what is to be achieved
are now at least partially defined. This information, when combined with the technical
analysis of the City, will yield an extremely sound foundation upon which plans will be
formulated.
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COMPREHENSIVE PLAN UPDATE
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PROFESSIONAL PERSPECTIVES
P R O FES S 1 O NA L P E R S P ECTI V ES
INTRODUCTION
While the major thrust of the Tactics study is to draw out the major issues and concerns
which are perceived by community officials, it also provides opportunity for limited
"editorial" comment on the part of the professional planner. This added "insight" hopefully
will assist in providing some sense of organization and directions to community leaders as
they consider and attempt to resolve the long range future of the City.
At this level of effort attention will not be given to detailed problems nor will solutions to
problems be offered. The focus of concern is rather the broad based, more philosophic
matters which must be confronted as a basis for the Comprehensive Plan which is to
evolve from the process. In this regard, it is evident that the community itself has
recognized and placed an emphasis on two of the primary issues which are shared by the
planner. These are whether or not public sewer will be provided and whether or not
agricultural preservation will continue to be pursued. These topics, while independent, are
also highly related. From a professional perspective, there is, however, a third area of
concern. This is the matter of the continuing and increasing separation and conflict of
philosophies and attitudes within the community.
COMMUNITY DIVISION
While it is not uncommon for a community in the stage of growth and development
currently experienced by Otsego, to witness division of goals and outlook, it must be
recognized that this lack of a common or agreed upon direction works toward a failure to
achieve any form of positive result. In the meantime, however, decisions continue to be
made with a lack of focus. As such, it is likely that mistakes will be made and obstacles
will be created which hamper the City from realizing the goals and objectives which are
hopefully, eventually agreed upon. Moreover, this community split results in a reactionary
posture and management by crisis. Time is devoted to solving immediate problems while
the long term picture is lost.
The primary and most fundamental issue which Otsego needs to pursue is the re-
establishment of a "team" approach and a focus on community rather than individual
interests. While some apparently believe that the introduction of a City Administrator is
a cure all for the present situation, it is suggested that this solution will fall far short of
expectations. Undoubtedly, a City Administrator is a needed element in the staffing
organization of the City. The community, however, must look to itself to resolve the
divergent philosophies which currently hinder the governing progress. The Mayor and City
Council need to take command and resolve the course which the City is to take into the
future. Moreover, the commissions and committees which serve the Council and
OTSEGO COMPREHENSIVE PLAN UPDATE
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P R OF E S S I ON A L P E R S P E CT IV E S
community need to recognize, adhere to, and support the Mayor and CQuncll in the
direction which is selected. Too frequently in the past, the various groups have worked
at odds or at least in different directions. It is, however, only through a combined team
approach that the community will again be able to forge ahead and resolve the many and
complicated issues which is presently confronts.
SANITARY SEWER
In general, the need to provide public sewer does not appear to be a matter of controversy
in and of itself. What is at issue is the means whereby and when this public service is to
be provided.
While under the jurisdiction of Wright County, the decision was made to urbanize the
eastern portion of the Otsego community. The approval of plats in the 1960s, allowing one
acre residential lots, signaled an irreversible change in character of the community. The
implications and consequences of this major decision were likely not well understood at
the time. Since this initial, very monumental decision and the continuation of the urban
platting with its relatively high densities, there has been mounting concern over the
potential of ground water contamination and pollution. During the 1980s, this issue
continued and fostered attempts to provide some type of public protection in the event of
a public health crisis. The incorporation of Otsego was at least partially based upon the
fact that the community would be better able to prepare for and, if necessary, respond to
a pollution crisis as a City rather than as a Township.
As pointed out previously in this report, the City's 1991 Comprehensive Plan was partially
founded upon the pollution concern Cl" attempted to address establishing sewer
availability in the Highway 101/CSAH 42 corridor as a "staging area" for possible extension
into the one acre residential plats of the City in the event that a health hazard became
reality. The City 's first Comprehensive Plan anticipated that sewer treatment services
would be provided by Elk River.
As the Elk River sewer treatment option initially proved unfeasible, a new treatment
alternative was pursued in conjunction with the City of Dayton and Frankfort Township and
is now being considered. Partially providing a further complication to the resolution of the
sewer issue is the potential for renewed discussions with the City of Elk River for such
service. In this regard, it is however important to note that the basic plan of providing a
"staging area" for possible extension into the developed urban areas of the community
continues to be a fundamental premise of the proposals which have been and are under
discussion.
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30
P R OF E S S I ON A L P E R S P E C T IV E S
Given the reoccurring focus of the sewer options and related plans which have or are
being considered, it seems appropriate to reiterate the basic concerns which are the heart
of the matter. Most evident and prominent is the assumption that the potential exists for
widespread septic system failures in the urban platted areas. As time passes, this
potential increases. Such a situation poses a major potential public health problem. Tied
directly to the public health problem is, however, also the potential of a financial crisis for
the individual property owner in the urbanized area of the community. If the community
is caught unprepared, the cost of correcting a major septic system failure event would
generate highly significant expense. This could pose the potential financial ruin of
homeowners and/or render the property near useless. The City, as a whole, would also
face financial jeopardy. The focus of planning efforts to date has therefore been to make
available a public sanitary sewer treatment and collection system in close proximity to the
threatened area. While such precaution would not eliminate health or financial concerns,
the impact would be lessened dramatically.
Although not viewed as the primary reason or objective, not to be overlooked is the
potential of economic development opportunities created by a public sewer system. This
spinoff benefit, combined with the access and visibility afforded by Highway 101, provides
Otsego with the opportunity to diversify and expand its tax base. The long range
advantages would be the lessening of the tax burden carried by residential and farm
properties.
It is believed that the point in time has now been reached when the Otsego community is
at a major crossroads in terms of its future. A basic decision on whether or not to proceed
with public sewer is now on the table. Regardless of the course of action taken, there are
risks and financial consequences. All of these factors on both sides of the issue must be
carefully considered and no conclusion will be easily reached. At present, the public
health threat remains. There are major costs both with or without public sewer. The future
character of Otsego hangs in the balance. It would also appear there is little room for
"middle" ground. If a public sewer option is not pursued, it would seem advisable for the
community to halt platting. Perpetuation of the one acre subdivisions simply increases the
potential for eventual widespread septic system failure. Also, a larger "urban" lot of 2.5
acres, for example, is a poor utilization of land and increases the cost of City and school
services. A non-public sewer option is also not without further consequences.
Enforcement of the City's current ordinance on annual or biannual septic system
functioning will likely become a responsible necessity. On the other hand, proceeding with
a public sewer system is near totally dependent upon the national and regional economy
over which the City has no control. It is primarily through new development that a system
will be financed. A public sewer will also bring more rapid growth which, and although
concentrated, will have many community impacts.
OTS EG O
COMPREHENSIVE PLAN UPDATE
PLANNING TACTICS
PROFESSIONAL P E R S PECTIVES
In summary, there is no turning back of the clock. The character of the community and
associated contamination concerns resulting from past development decisions cannot be
ignored. Undoubtedly costs associated with corrections of these concerns will continue
to escalate. No decision in the history of Otsego, with the exception of the initial approval
of plats having one acre lots, is as monumental as this question now being posed by the
public sewer issue. In contrast to the initial platting decision, the ramifications of public
sewer are however more evident and force differing views which will be difficult to mediate
and resolve. The task ahead, regardless of the outcome, will be one which no one enjoys
and will demand strong leadership and resolve on the part of City officials.
AGRICULTURAL PRESERVATION
As part of the 1991 Comprehensive Plan, agricultural preservation was a clearly defined,
high priority objective of the community. Over time, this basic principal has, however,
been eroded by incremental modifications to community regulations. For example,
allowing the transfer of development rights from sections of property lacking street frontage
has served to increase the number of non -farm related residences in the rural area. Some
contend that the new feedlot ordinance also signals a loss of economic viability of farm
operations.
The issue of agricultural preservation is most certainly a matter which can be addressed
in and of itself. It must be recognized, however, that the issue is also directly tied to the
public sewer decision. If public sewer is in fact pursued, the community will have to
channel a majority, if not all, of the housing development into urban areas in order to help
insure the financial success of the system. To do otherwise would be counter productive
and financially questionable.
Beyond the question of public sewer is, however, the financial costs of allowing
development at even a 4 per 40 density throughout the City. A determination on this type
of development approach is a decision to be made by the community. In considering such
action, it will be critical, however, to analyze the anticipated accelerated servicing costs
associated with such an approach. Again, the issue of community versus individual
interest will weight heavily as well as the long range versus short range perspective.
OTSEGO COMPREHENSIVE PLAN UPDATE
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32
P R OF E S S I O NA L P E R S P E CT IV E S
MORATORIUM AND DEADLINE
It is clear to most that further work on the Comprehensive Plan cannot proceed until the
issue of public sewer is resolved. The decision on this fundamental matter will largely
dictate the direction of the Comprehensive Plan and City's future. Until this decision is
made, therefore, no further work on the Comprehensive Plan should be undertaken.
From a professional perspective, however, besides halting work on the Comprehensive
Plan, it is recommended that consideration be given to also placing an immediate
moratorium on any and all platting and land division in the community for anything except
agricultural and possibly commercial and industrial uses. The need for this very significant
action is based upon the potential of creating additional problems or having development
run counter to what may be the direction eventually established for the long term of the
community.
A second action which is considered necessary on the part of the City Council is to set a
firm deadline for a decision on whether or not public sewer will be provided in the near
term future. It is in no one's best interest or the interest of the City as a whole to continue
the uncertainty which has and continues to exist relating to possible public sewer. The
community will be far ahead by a determination on this matter and subsequently being able
to direct actions and decisions accordingly. It is suggested that 31 March 1997 be
delineated as the deadline. While this date may push the question, such is seen as
advisable and should allow ample time for consideration of all alternatives and options,
including the possible renewed discussions for sewer service with Elk River.
OTSEGO COMPREHENSIVE PLAN UPDATE
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33
CHECKLIST
C H E C K L I S T
As part of the 1989 Tactics report a topical listing was included whihc idented various
issues confronting the community. Such topical listing was intended to help focus attention
and serve as a checklist of work assignments and accomplishments. So as to monitor the
City's progress in these areas, the list has been reiterated below and supplemented with
comments regarding the status of the various issues. In review of this material, the reader
is advised that the topics are cited in no specific order and there is no intended or implied
priority.
Issue
Comment
Preservation of agricultural/farming areas.
Some measures enacted but a
lack of community consensus
exists.
Limitation on new subdivisions spreading beyond
Addressed through adoption of
borders of existing urban development.
Comprehensive Plan and
Zoning/Subdivision Ordinances.
Prohibition of scattered development in prime
Enforced through implementa-
agricultural areas,
tion of Comprehensive Plan
policy/ordinances.
Environmental protection/erosion control.
Addressed through mandatory
plan submission/City drainage
plan.
Floodplain protection.
Addressed through Floodplain
Ordinance.
Enhanced legal status and powers.
Provided through incorporation.
Ability to charge developers for costs directly or
Implemented through
indirectly generated by their projects,
development applications/fee
responsibilities.
Increased local control over development
Provided through incorporation/
approvals.
adoption of ordinances.
Updated and detailed Comprehensive Plan.
Adopted in 1991.
Development regulations which more adequately
Addressed through adoption of
address urban problems and standards.
Zoning and Subdivision
Ordinances.
OTSEGO COMPREHENSIVE PLAN UPDATE
PLANNING TACTICS
C H E C K L I S T
State and Federal grants.
Efforts continuing.
Public sanitary sewer.
Efforts continuing.
Public water system.
Under limited study.
Improved storm drainage controls and systems.
Addressed through implementa-
tion of grading/drainage plans.
Paved streets in urban residential areas.
Required for new
developments.
Predetermined major road network providing for
through movement.
Addressed through adoption of
City Transportation Plan.
Limitation of property access onto major roads.
Addressed through implementa-
tion of adopted policy.
Highway 101 upgraded to four lanes.
Project completed.
Improved County road 39/Highway 101
intersection.
Completed.
Minimize cukde-sac street development.
Address through subdivision
review and requirements.
Updated street and public works equipment.
Efforts continuing.
Expansion of the County park.
55 acre expansion completed.
Parks with ballfields and other active recreational
facilities.
Constructed within Prairie Park.
Bike paths and trails.
Efforts continuing.
New Town Hall and meeting facilities.
Completed.
A senior citizens/community center.
No action.
A post office in the town.
No action.
Library facilities within the town.
No action.
An elementary school within the town.
Completed.
Increased police and fire service.
Service provided as demand
dictates.
OTS EGO
COMPREHENSIVE PLAN UPDATE
PLANNING TACTICS
C H E C K L I S T
Establishment of churches and community
Christ Lutheran Church
organizations,
expansion planned.
Increase property maintenance controls and
City has increased enforcement
enforcement,
of property maintenance
controls, more needs to be
done.
Limitations on outside storage and home
Ordinances adopted to address
occupations.
concerns.
Housing redevelopment/rehabilitation.
No action.
Improved manufactured housing park development
Comprehensive standards
standards.
included in adopted Zoning
Ordinance.
Increased tax base and economic development.
Highly limited advancement.
A "centralized" commercial or downtown area.
Efforts continuing.
Wider variety of shopping facilities.
No action.
Closer availability of basic medical services.
No action.
Creation of industry and employment.
Limited establishment of new
industry employment centers.
Improved communications with Wright County and
Improved communications,
surrounding communities.
City newsletter.
Implemented.
Signing identifying the town.
Partially completed.
OTS EGO
COMPREHENSIVE PLAN UPDATE
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36
C H E C K L I S T
SUMMARY
The preceding paragraphs were seen as major work efforts confronting Otsego in 1989.
To a significant degree, many issues have been satisfactorily addressed. Such list should,
however, be considered an ever changing compilation of community priorities which should
be updated as new problems arise and/or on a yearly basis. In this regard, the information
provided in this Tactics report may be considered a starting point for such work effort. The
very critical point in this regard is to get the process and program moving before existing
problems intensify or are realized and the means to resolve such situations is compounded
and complicated.
OTS EGO
COMPREHENSIVE PLAN UPDATE
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37
N TROD U C T I ON
The Otsego City Council has recognized the need to update its 1992 Comprehensive Plan
to fully respond to ongoing changes which have been experienced to date, and the
increased demands that growth has placed upon public facilities and services.
The purpose of the Otsego Inventory is to identify the type, amount and pattern of growth
that has taken place within the City. To this end, a thorough inventory of existing
conditions has been conducted. This inventory encompasses four general categories of
information. The first category, entitled the Social Profile, contains population information
as it relates to growth, age characteristics, education, occupation and income level.
The second area of inventory is summarized under the Physical Profile section. This
information includes physical characteristics including natural environment, land use,
transportation, and communities facilities.
The third area of inventory data is the Economic Profile which consists of population,
household and employment trends and projections, housing market potentials, and
commercial market potentials.
The fourth area of inventory data is the Fiscal Analysis, which involves a fiscal examination
of the City including revenues and expenditures.
OTSEGO
COMPREHENSIVE PLAN UPDATE
L'
INVENTORY
r
0
S O C I A L P R O F I I. E.
SUMMARY
■ Population growth in Otsego has varied considerably since 1960, with rapid growth
occurring in the 1970s and moderate growth during the 1960s and 1980s, Growth
during the first half of the 1990s has increased above the rate experienced from
1980-1990, but not at levels experienced during the 1970s,
■ Household growth in Otsego has closely followed population growth patterns. As
with population, household growth has increased during the first half of the 1990s,
■ Trends in household size since 1970 suggest a declining number of persons per
household. This is largely reflective of an increase in young individuals and
married couples without children, as well as empty nester parents.
■ Otsego is afamily-oriented community with over 50 percent of the households
having at least one child.
■ Otsego's population is aging. Since 1980, the City's largest age group, labor force
age persons (20-64), increased as a percentage of total population, while the
school age group (0-19) and retired age group (65+) decreased. This again reflects
an increasing number of individuals and married couples without children and
empty nester parents.
■ The majority of Otsego's population is employed in service, precision craft or repair,
or labor industries. The percentage of persons employed in these industries
I
ncreased since 1980, while the percentage of professional or administrative
employed persons decreased. The percentage of persons employed in the farm,
forestry, and fishery occupations remained relatively stable.
■ Otsego is a bedroom community with the majority of the population traveling 30
minutes or more to work.
■ Otsego's per capita and median family income profile is generally lower than those
of adjacent communities. This is reflective of several factors, including occupation
characteristics, age characteristics and housing affordability.
■ While declining, Otsego's average household size is significantly higher than that
of Wright County.
OTSEGO
COMPREHENSIVE PLAN UPDATE
3
INVENTORY
S O C I A L P R O F I L E
POPULATION GROWTH
The trends in population growth for Otsego, surrounding communities and Wright County
are illustrated by the table on the following page. Each of the communities shows positive
population growth. This growth may be attributed in part to the following:
• Continued expansion of regional growth of the Twin Cities Metropolitan Area has
caused increases in population in Otsego, surrounding communities, and Wright
County in general.
• The proximity of the northeast Wright County area to the Twin Cities Metropolitan
Area allows individuals to live in Otsego and surrounding communities, while
maintaining convenient access to metropolitan employment centers and social
activities.
• Otsego and surrounding communities benefit from the availability of Interstate 94,
which serves as a major connecting route to the Twin Cities Metropolitan Area.
Population growth has varied significantly since 1980, following a decade long cyclical
pattern of rapid then slow growth. From 1960 to 1970, Otsego's population increased at
a relatively slow pace of 45 individuals per year, from 1,080 to 1,526 persons. The rate
of growth increased significantly during the 1970s, at a rate of 329 individuals per year.
Growth during the 1980s returned to a pace similar to that experienced during the 1960s,
at an annual rate of 45 individuals. Growth in the first half of the 1990s has again
accelerated, with the population increasing at a rate of 168 persons per year. Part of this
recent growth may be explained by the addition of former Frankfort Township residents,
following an annexation of Township land during 1996.
In comparison with surrounding communities, Otsego's current growth rate is among the
lowest. It should be noted that Albertville and especially St. Michael's recent growth
figures may also be inflated due to the annexation of Frankfort Township that occurred
during 1996.
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INVENTORY
S O C I A L P R O F I L E
POPULATION GROWTH 1960 -1995
Population
Otsego
Albertville
Dayton
Elk River
Frankfort
Twp
Rogers
St.
Michael
Wright
County
1960
11080
279
456
1,763
11651
378
707
291935
1970
11526
451
517
21252
1,372
544
11021
38,933
1980
41769
564
41070
63785
21170
652
1519
581681
1990
51219
11251
41443
112143
21935
698
2,506
68,710
1995 Est.
61229'
21220'
41979
13,286
N/A
1,204
6,629'
77,232
Average Annual Population Growth
Over a period
from
Otsego
Albertville
Dayton
Elk River
Frankfort
Twp
Rogers
St.
Michael
Wright
County
1960A 970
45
18
6
48
-279
17
31
899
1970-1980
329
11
355
453
798
11
50
1,975
1980A 990
45
69
37
436
765
5
99
13002
1990-1995
168
163
89
429
N/A
84
687
1,420
Percentage Growth
Over a period
from
Otsego
Albertville
Dayton
Elk River
Frankfort
Twp
Rogers
St,
Michael
Wright
County
1960A 970
41.2
61.6
13.4
27.7
-20.3
43.9
44.4
30.1
1970-1980
212.5
25.0
687.2
2012
58.2
1909
48.8
50.7
1980A 990T�
9.4
121.8
9.2
64.2
35.3
7.1
65.0
17.1
Effective (Compounded) Growth Rates
Over a period
from
Otsego
Albertville
Dayton
Elk River
Frankfort
Twp
Rogers
St.
Michael
Wright
County
1960A 970
3.51
4.91
1.26
2040
-1.86
3.70
3.74
2.66
1970A 980
12.06
2.26
22.91
11.60
4.69
1.82
4.05
4.18
1980-1990
.90
8.29
088
5.10
3.06
.68
5.13
1.59
1990-1995
3.60
12.16
2.30
1.77
N/A
11.52
21.48
2037
' 1996 Estimate following annexation of Frankfort Township area
Source: U.S. Census, 1960, 1960, 1980, 1990, Minnesota State Planning -Demographers Office, City of Otsego,
Northwest Associated Consultants, Inc.
OTSEGO
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INVENTORY
S O C I A L P R OF I L E
HOUSEHOLD GROWTH
Household growth in Otsego is illustrated in the table below. The number of households
in Otsego increased most significantly during the 1970s, This compares to a 14 percent
increase during the 1980s and a 19 percent increase from 1990 to 1995.
Otsego's average household size evidences a continuing trend toward smaller families.
Young married couples are waiting longer to have children and having fewer children than
as typical i wn the past. Otsego's current household size average of 3.24 is higher than
that of general Wright County, which is 2.98.
HOUSEHOLD GROWTH 1970 - 1995 Est.
Population
Households
Household
Size
1970
11526
N/A
N/A
1980
41769
11397
3.41
1990
51219
11588
3.27
1995 Est.
61116
1, 890
3.24
SOURCE: U.S. Census 1970, 1980 and 1990,
State Demographer
The 1990 Census provides a demographic illustration of the households in Otsego, as
illustrated on the table on the following page. As shown on the table, Otsegofamily-
oriented community comprised largely of married couples and single parent households
with children. In 1990, only 14.2 percent of the households in Otsego were non -family
households.
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S O C IAL P R O F I L E
1990 HOUSEHOLD TYPES
Total # of
Percent
HH w/
Percent
Families
Percent
HH
Total HH
Children
Total HH
w/o Child
Total HH
Family -Married
11181
74.4
720
45.3
461
29.0
Couple
Family -Male
74
4.7
47
3.0
77
1.7
Householder
Family -Female
108
6.8
65
4.1
43
2.7
Householder
Total Families
11363
85.8
832
52.4
581
36.4
Non -Family
225
14.2
N/A
N/A
N/A
N/A
Households
Total
11588
Households
SOURCE: U.S. Census 1990
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S O C I A L P R OF I L E
AGE DEMOGRAPHICS
The 1990 Census includes age statistics for Otsego and surrounding community residents.
The 28.3 median age in Otsego represents the average of the community sample. As
shown below, St. Michael has the lowest median age (26.8), while Hanover exhibited the
highest (32.6). The 1990 Otsego median age has increased by 4.3 years since 1980,
supporting that the community as a whole is growing older.
1990 MEDIAN AGE
Otsego
28.3
Albertville
26.2
Dayton
29.3
Hanover
3206
Frankfort Township
28.8
Elk River
28.9
Rogers
29.6
St. Michael
26.8
Wright County
30.0
SOURCE: U.S. Census 1990
The table on the following page divides Otsego's population by age group. The labor force
age group (ages 20 to 64) is the largest age group within Otsego, accounting for just over
60 percent of the 1990 population. The next largest age group is the school aged group
accounting for 35 percent of the 1990 population.
Since 1980, the percentage of the population represented by persons of the labor force
age group has increased, while the school age and retired groups have decreased. The
labor force age group represents individuals between the ages of 25 to 64. These trends
reflect not only an aging in -place population, but also an influx of individuals and married
couples who are young and just beginning to have children or who are empty nester
parents, whose children have grown and moved out of the family home.
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S O C 1 A L P R O F I L E
POPULATION ACCORDING TO AGE GROUP
Age Group
1990
Percent
1980
Percent
School Age
04
483
755
5-9
604
410
10-14
505
468
15-19
387
409
Sub -Total
11979
35.0
21042
43.0
Labor Force
20-24
311
442
25-34
11043
11032
d
3544
969
556
45-54
442
271
55-64
684
160
Sub -Total
31449
60.9
27461
51.9
Retired
65+
233
4.1
260
5.4
TOTAL
51661
100.0
41763
100.0
SOURCE: U.S. Census 1990, 1980
Otsego's age characteristics and trends are important considerations in planning for the
community due to the demands these various age groups have for services. As shown
in table above, the largest number of children in the school age group is between the ages
of 5 to 9 (605), who are just entering into the education system at the elementary level.
This, along with 484 children aged 0 to 4, suggests that the planning for future parks,
trails, recreation programs and schools is critical.
The retirement age population illustrates a trend of decline. This may be a result of retires
moving to the sun belt areas, or to high and mid density residential living environments
and care centers, where the specific needs of this age group can be accommodated.
There are no such facilities in Otsego due primarily to the lack of sewer and water service
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S O C I A L P R O F I L E
to support higher density residential development. As such, Otsego's retired age
population will likely stabilize or continue to decline until such time as sanitary sewer and
water service is available.
EDUCATION
The current education levels of Otsego residents age 18 and over is detailed below.
Approximately 82 percent of Otsego's residents have attained a high school diploma or
higher education and approximately 7 percent have attained a college bachelors degree
or higher. For comparison purposes, 80 percent of the population in Wright County has
obtained a high school diploma and approximately 11 percent have received a college
bachelors degree or higher.
1990 EDUCATION LEVELS AGE 18 AND OVER
Level Attained
Otsego
Percent
Wright
County
Percent
> 9th Grade
192
5.6
31814
8.2
9th to 12th
(no diploma)
437
12.8
51457
11.8
High School Graduate
11520
44.3
20,171
43.6
Some College
(no degree)
720
21.0
81149
17.6
Associate Degree
321
9.4
3$40
7.7
Bachelors Degree
198
5.8
31881
8A
Graduate Degree
39
1.1
11229
2.7
TOTAL
31427
100.0
46,241
100.0
% High School Grad or
Higher
---
81.6
---
80.0
% Bachelors Degree or
HIGHER
---
6.9
SOURCE: U.S. Census 1990
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S O C 1 A L P R OF I L E
OCCUPATION
Information from the 1990 and 1980 Census regarding employment characteristics of
Otsego residents is provided below. The most common occupation in 1990 for Otsego
residents was operators, fabricators and labors, as it was in 1980. Overall, the percentage
of Otsego residents in professional and administrative positions has decreased since
1980, while the service industry employment increased. Individuals in the farm, fishing
and forestry category decreased only slightly from 1980 to 1990, which would suggest
fairly stable agricultural operations within Otsego during the 1980s,
OCCUPATIONS
1990
1980
Number
Percent
Percent
Managerial and Professional
1580
[Number
161
Executive, Administration and Managerial
235
157
Professional
176
197
Technical, Sales and Administrative Support
24.0
25.5
Technical
89
55
Sales Occupation
204
143
Administrative Support
365
341
Service
15.5
805
Private Household
16
Protective Service
15
27
Other
294
157
Farm, Forest, Fishing
102
3.7
84
387
Precision Product, Craft and Repair
536
19.6
334
15.8
Operators, Fabricators and Laborers
25.9
27.5
Machine Operators, Assemblers, Inspectors
333
373
Handlers, Equip, Cleaners, Helpers, Laborers
183
130
Transportation & Material Moving
193
122
SOURCE: U.S. Census 1990
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SOC IAL PROFFI LE
Census profiles regarding travel to work statistics is provided below. Such profiles suggest
that Otsego is a bedroom community, meaning that residents are likely to commute to jobs
in the Twin Cities from their homes in Otsego. According to the 1990 Census, over half
of Otsego's population commuted 30 minutes or more to work.
OTSEGO
TRAVEL TIME TO WORK
Time Traveled
Number
Percent
Less than 5 minutes
68
2.5
5 to 9 minutes
143
5.3
10 to 14 minutes
346
12.8
15 to 19 minutes
290
10.7
20 to 29 minutes
431
16.0
30 - 39 minutes
525
1905
40 to 59 minutes
576
21.3
60 to 89 minutes
118
4.4
90+ minutes
34
1.3
Worked at Home
167
6.2
TOTAL
21698
100.0
SOURCE: U.S. Census 1990
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INVENTORY
S O C I A L P R O F I L E
INCOME
Census information regarding income statistics of Otsego and surrounding communities
is illustrated in the following table.
1990 INCOME
Per Capita
Income
Median Family
Income
Otsego
$12,256
$391912
Albertville
12,450
401202
Dayton
15,981
451086
Frankfort Township
14,407
401000
Hanover
141265
46,182
Rogers
14,459
461023
St. Michael
131186
40,192
Elk River
14,616
431057
Wright County
12,687
36,981
SOURCE: U.S. Census 1990
As noted above, Otsego's 1990 per capita and median family incomes are the lowest of
the communities surveyed. Otsego's median family income, however, is higher than the
Wright County average. These statistics may be attributed to the younger age of Otsego's
residents, who are just entering the work force and becoming established. The
predominance of service and/or laborer occupation characteristics of Otsego residents,
as well as a housing stock of low to moderately priced units, including manufactured
housing may also be factors
The numbers and percentages of individuals and families for whom poverty status was
determined in 1990 are illustrated on the following page. The average poverty threshold,
determined by the Federal Government in 1989, for unrelated individuals was $6,310 and
$12,674 for a family of four. These persons may require public assistance in order to meet
their housing needs. As such, they are an important consideration in the comprehensive
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S O C I A L P R OF I L E
planning process. The percentage of Otsego residents determined to be below the 1989
threshold was significantly higher than other nearby communities, with the exception of Elk
River. The percentage of low income persons and families is lower than that of Wright
County, however.
1990 LOW INCOME POPULATION
Individuals
Percent
Families
Percent
Otsego
209
400
49
3.6
Albertville
35
208
5
196
Dayton
97
202
20
106
Frankfort Twp,
77
206
17
282
Hanover
17
246
3
260
Elk River
770
700
184
601
Rogers
24
304
2
1.2
St, Michael
77
311
11
117
Wright County
41615
658
956
503
SOURCE: U.S, Census 1990
OTSEGO COMPREHENSIVE PLAN UPDATE
I NVENTORY
`L!
N A T U R A L E N V I R O N M E N T
SUMMARY
■ Otsego is divided into distinct topographical areas ranging from fairly hilly in the
southeastern and northwestern portions of the City to nearly level areas in the
remainder of the City.
■ General soil types within Otsego tend to correlate with the overall topography of the
City. Some soils within Otsego have limited potential for development. Therefore,
when questionable areas become an issue, reference should be made to the Wright
County Soil Survey in conjunction with soil testing.
■ Significant numbers of on -site septic systems have either failed or required upgrade
since 1990. Such failures raise ground water contamination concerns.
■ Soil suitability for farming has been broken down into three soil categories by the
United States Department of Agriculture. The majority of soils located in Otsego
are made up of one of the three important agricultural soil types.
■ Otsego contains a number of wetland and marshy areas which serve as ponding
areas for storm water runoff. Otsego has experienced problems with storm water
runoff in the past and it is anticipated that these problems will continue unless a
comprehensive storm water management plan is pursued.
■ Areas identified within the 100 year floodplain boundary follow the course of the
Mississippi River.
■ Large tree and vegetation massings lie within areas along the Mississippi River, the
Crow River, and around areas with marshes and wetlands.
OTSEGO
COMPREHENSIVE PLAN UPDATE
15
I�ATU RAL. ENVI RON ME NT
TOPOGRAPHY
The overall topography of Otsego can be roughly characterized as fairly hilly in the
southeastern and northwestern "corner" of the City and fairly level throughout the
remainder.
The areas with steeper slopes are denoted on the following map. These areas generally
contain slopes of 12 percent or more. There are three areas near 85th and Nashua
Avenue that also have slopes of 12 percent or greater.
While these steeper slopes should be considered in all development, they represent a very
small area when compared with the total acreage count within Otsego.
Development upon slopes that exceed 12 percent must be sensitive to the preservation
of the natural vegetation and stabilization of slopes to present erosion. Erosion results in
loss of valuable top soil and diminished water quality. Erosion is also a problem that is
prevalent wherever agricultural crop production is taking place, particularly in areas of
steep slopes. The potentially serious problems resulting from erosion should be
addressed within the framework of the Comprehensive Plan.
OTSEGO COMPREHENSIVE PLAN UPDATE
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IV A T U R A L E N V I R O N M E N I
SOILS
While it should be recognized that any large scale mapping of soil suitability for farmlands,
urban development, or any other use results in an extremely generalized graphic
statement. It does serve to illustrate some of the inter -relationships for general planning
purposes. When referring to a specific parcel of land, more detailed information is
required.
Soil Suitability for Urban Development
Soil types commonly found in Otsego have been grouped into three cohesive categories
(as illustrated on the following map) to facilitate identification and simplify discussion
regarding their distinctions.
The following list of applicable soils were obtained from the 1980 U.S. Geological Survey
and correspond to the soil types as illustrated on the following soils map.
1. Hayden-Dundas-Peat Association. This soil association is located primarily in the
City's southwestern corner, making up roughly two-thirds of the soils in Otsego.
The association is gently rolling and has many flats and depressions. High
susceptibility to front heave, high shrink -swell potential and normally high seasonal
water table severely limit the use of these soils for most types of urban
development.
2. Hayden -Lester -Peat Association. This association occurs in the strongly rolling
and hilly areas along the northern and eastern part of Otsego. These sots have
moderate to severe constraints for use as building sites because of this shrink -swell
potential, the front heave potential and the problems with the slopes.
3. Esterville-Hubbard-Kadena Association. This association primarily borders the
Mississippi River with nearly level or undulating slopes. The major obstacle to
urban development is the rapid permeability of the soils. There is a high hazard of
pollution to underground water supplies when these soils are used for on -site sewer
absorption fields. Steep slopes also result in limitation to urban development.
OTS EGO
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INVENTORY
OTSEGO
COMPREHENSIVE PLAN UPDATE
20
I NVENTORY
NATU RAL ENVI ROIN ENT
Urban development has primarily been concentrated in the northeast corner of the City
and in spot locations throughout the remainder of Otsego. Soils information should always
be utilized as an integral part of the planning and development process. Therefore, when
questionable areas are an issue, inquiry should be made regarding more specific soils
information within.the Wright County Soil Survey. Soil testing procedures, however, will
clearly provide the best information, when deemed necessary.
A significant number of on -site septic systems have either failed or been in need of
upgrade since 1990. Such failures raise concern in regard to ground water contamination
and related public health concerns. According to the City Building Inspector,
approximately 10 percent of the total ± 1,500 private septic systems within the City have
failed since 1990. Further, approximately 60 percent of the existing homes inspected and
sold in the City in the same period have required replacement. The following map
identifies the locations of septic system failures since 1990.
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N A T U R A L E N V I R ON MEN T
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N AT O R A L E N V I R O N M E N T
To address these concerns, the City has taken several steps, including adoption of a "point
of sale" ordinance that requires system certification at the time of property sale and the
placement of monitoring wells in various locations to insure that water quality remains at
acceptable levels.
Soil Suitability for Farmlands
The information contained on the Farmlands Map was taken from a map produced by the
United States Department of Agriculture, Soil Conservation Service for Wright County.
The soil types, as illustrated on the Farmlands Map, were broken down into three different
generalized categories as described below:
1. Prime farmlands are prime and unique farmlands that have the best combination
of physical and chemical characteristics for producing food, feed, fiber, and oilseed
crops.
2. Additional farmland of State-wide importance are farmlands that have significant
State-wide importance for the production of food, feed, fiber, and crops. Generally,
additional farmlands of State-wide importance include those that are nearly prime
farmland but have soil limitations that are difficult to overcome. These soils
typically produce high yields of crops when treated and managed according to
acceptable farming methods. Some may produce higher yields than prime farmland
if conditions are favorable.
3. Additional farmland of local importance are additional farmlands in the production
of food, feed, fiber, forage, and oilseed crops, even though these lands are not
identified as having national or State-wide importance. Where appropriate, these
lands are to be identified by the local agency or agencies concerns. In places,
additional farmlands of local importance may include tracts of land that have been
designated for agriculture by local ordinance. This category should not be used
without approval of the State Soil Scientist.
Predominant soil types within Otsego are composed of prime farmlands and additional
farmland of State-wide importance. Policy regarding the long term preservation of
agricultural land has been subject to considerable debate recently and should be
addressed within the Development Framework portion of the Comprehensive Plan.
It should be noted that the farmlands map represents a broad generalization and as such,
should be used only to discuss the relationships between other, more specific
development factors such as soil types and topography, etc.
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N ATURAL LNVIRON M E N T
OTSEGO COMPREHENSIVE PLAN UPDATE
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TURAL ENVI RONMENT
WETLAND/PONDING AREAS
Otsego contains a number of wetland, marshy areas and depressions which serve as
ponding areas for excess storm water runoff during certain seasons of the year. These
areas are valuable for their role in flood water retention, ground water recharge, nutrient
assimilation, livestock watering, and aesthetics. Also, they provide a natural habitat for
waterfowl and other wildlife. The wetland areas adjacent to Rice Lake and Odell Avenue
provide a valuable natural habitat for wildlife and fowl and as mentioned in the Community
Facilities section, these areas have been designated by the Department of Natural
Resources as protected natural environment wetland areas.
The marshes, wetlands and ponding areas also provide a natural system for managing
storm water runoff. Storm water drainage in Otsego has been handled primarily by natural
drainage swales and by man-made ditches located along the City's streets and roads.
Otsego has, however, experienced major drainage problems in the past, primarily in the
form of storm water overflow. These drainage issues may become more pressing as
additional development takes place. A Comprehensive Storm Water Management Plan
has been developed by the City. Such plan includes implementation strategies to control
seasonal drainage problems. A storm water impact fee is also required of new
development to fund future storm water improvements.
The City has also adopted the 1991 Wetland Conservation Act. The act's primary purpose
is to regulate development in a manner that results in no net loss in wetland acreage. This
requires urban development to design subdivisions that 1) avoid wetlands; 2) minimize
impact if some intrusion on the wetland is necessary; and 3) mitigate wetlands that are
impacted.
F�OODPLAIN
Also noted on the following map are the areas identified within the 100 year flood zone
according to the National Flood Insurance Program. It is apparent from the map that areas
within the 100 year flood boundary follow the course of the Mississippi River. Otsego's
Floodplain Overlay Zoning District was created for the purposes of protecting public health
and safety and to minimize property damage and pollution from flood waters. Boundaries
for the Floodplain District are illustrated on the following map and are outlined on Federal
Flood Insurance maps. The standards contained in this district mimic those of the model
floodplain ordinance developed by the Department of Natural Resources (DNR) in
conformance with the Floodplain Zoning Act,
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N A T U R A L E N V I R O N M E N T
In addition to the Floodplain District, Otsego has an established a Wild and Scenic River
Overlay Zoning District. This district is graphically outlined on the zoning map. The
purpose of this district is to protect and preserve the scenic, recreational, natural and
historical values of the Mississippi River in Wright County by carefully controlling
development of this river corridor consistent with the State Wild and Scenic River Act and
Minnesota Regulations NR 78-81. It should be noted that the Minnesota Department of
Natural Resources is currently in the process of re-examining the State's Wild and Scenic
requirements. In this regard, some regulatory changes applicable to the City of Otsego
may occur in forthcoming years.
VEGETATION
The existing natural vegetation within the City is identified on the following map. Within
Otsego, areas having flatter topography contain relatively few massings due to its
continuing farm utilization. The large tree massings appear to be interspersed within areas
located along the Mississippi River or are scattered throughout the City in selected areas.
While vegetation clearly provides a unique character and adds substantially to the existing
desirable qualities of Otsego, the majority of land in the City is void of significant tree
massings.
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OTS EGO
NATU RAL ENVI RONIvIENT
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La N D U S E
SUMMARY
■ Physical barriers restrict access to Otsego and serve to isolate the community.
Entrance points into Otsego are generally controlled by surrounding communities.
■ The pattern of land use in Otsego reflects the influence of older agricultural land
use patterns with extending pressures of residential development.
■ Residential development is dominated by conventional single family detached
homes and manufactured homes. At this time, there are no multiple family
apartment -type dwellings within the City of Otsego.
■ Commercial land use is quite limited consisting of .6 percent of Otsego's total land
use and is primarily concentrated along principal and minor arterials (along
Highway 101 and County Road 39).
■ Presently, Otsego has very limited industrial activity. Any additional commercial
and industrial development will be closely tied to the provision of future urban
services (i.e., sanitary sewer).
■ Otsego is currently governed by the Otsego City Zoning and Subdivision
Ordinances, adopted in 1992.
OTSEGO
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INVENTORY
aLindmoLMAEROM
PHYSICAL BARRIERS
Natural environmental features such as bodies of water or abrupt changes in topography,
as well as man-made elements of urban development, often act as influences which can
construct land use and access. In dividing and distinguishing subareas within a
community, such barriers become a vital consideration for logical planning.
Physical barriers in Otsego are found in the form of waterbodies (the Mississippi River),
railroad tracks, and major roads. As illustrated on the following map, such physical
barriers have been identified throughout the City. As further illustrated, however, these
barriers exhibit varying degrees of impact based on their proximity and relationship to
existing development. Both the Crow River to the south and the Mississippi River to the
north and east isolate Otsego from neighboring areas due to the limited number of bridges
available for crossing. The presence of Highway 101 on the eastern edge of the City
intensifies the isolation of the City's eastern and western halves. The City of Albertville
isolates the southwest corner of the City of Otsego.
Physical barriers have both positive and negative aspects. On the positive side, barriers
serve to define cohesive areas and to lend structure to the arrangement of land uses, often
separating uses which would otherwise generate conflict. On the negative side, barriers
may artificially constrain development, and in separating developed areas, produce
problems of access between related land uses.
Parcels of land currently utilized for agricultural production can be considered potential
development barriers for future subdivision and urban expansion. Farm production is a
primary industry in Otsego with agriculture pursuits consuming nearly 79 percent of all land
located throughout the City. The existence of these activities will influence future land use
planning. Policies related to long term agricultural preservation will need to be addressed
within the Development Framework portion of the Comprehensive Plan.
The impact of physical barriers in less developed areas should be approached with an
awareness of the potential positive and negative impacts of existing (or planned) barriers
on expected development. Land use patterns which can take advantage of potential
beneficial aspects, while mitigating negative impacts, should be encouraged.
OTSEGO COMPREHENSIVE PLAN UPDATE
INVENTORY
MEMEMIMM
URBAN/RURAL SERVICE AREA
The City of Otsego has been subdivided into "urban" and "rural" service areas. Such
designations are intended to define preferred areas of the City where urban services (i.e.,
urban development densities, snow plowing, neighborhood parks, etc.) and the
continuation of agricultural uses may occur. The urban service area, as identified on the
following map, has been further subdivided into an "immediate" service area and a "long
range" urban service area.
Currently, 3,074 acres of land exist within the immediate urban service area. Nearly 84
percent of this area is already developed. Approximately 492 acres of developable vacant
land exists throughout the immediate urban service areas. The majority of such vacant
land is comprised of small scattered parcels.
Approximately 3,935 acres is designated as long range urban service area. Scattered
development has occurred in this area but most of the land is either vacant or continues
to be used for agricultural purposes.
The urban service area boundaries have been based on a premise that future sanitary
sewer service would, at some future point, be extended from the City of Elk River. Since
the adoption of the present Comprehensive Plan, Elk River has officially indicated that
such service is not to be made available to the City of Otsego. As such, the urban/rural
service area boundaries will need to be re-examined as part of the Comprehensive Plan
Update effort.
OTSEGO
COMPREHENSIVE PLAN UPDATE
43
INVENTORY
OTS EGO
LAN D U S E
COMPREHENSIVE PLAN UPDATE
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INVENTORY
LAN D 11 S E
EXISTING LAND USE
Patterns of land use presently existing in Otsego and uses still developing are influenced
by several important factors such as major road access, proximity to the City of Elk River,
and the Mississippi River.
Otsego's historic development pattern demonstrates a concentration of growth that has
occurred in close proximity to the City of Elk River. The highly concentrated
urban/suburban growth is located in the northeast quarter of the City where access to Elk
River and major road systems are convenient. Both Otsego and Elk River have
experienced similar population growth patterns suggesting that Otsego's proximity to Elk
River and major road systems are interrelated. The location of major transportation routes
has affected the growth patterns in both communities, with Otsego and Elk River becoming
'bedroom" communities for commuters working in the Metro Area and Elk River. Further
expansion in the northeast corner of the City, however, should be closely monitored to
guarantee expansion takes place in an orderly manner and is consistent with sanitary
sewer planning efforts. Future land use patterns are highly dependent upon the results
of the City's sanitary sewer planning efforts which at this time are inconclusive.
In spite of the City's urban expansion, Otsego remains highly agricultural with 79 percent
of the City still in cultivation or involved in some other farm activity.
In August of 1996, approximately 640 acres of former Frankfort Township located south
of 60th Street and east of Highway 101 was annexed to Otsego. Further, approximately
410 acres of land were detached from Otsego and annexed to Albertville.
The following map graphically illustrates the distribution and extent of a variety of land use
types in Otsego, including the recently annexed Frankfort Township territory. A statistical
breakdown of uses observed in Otsego is provided in the following table.
The following land use table and existing land use map correspond closely with the
existing zoning breakdown table and zoning maps that follow. Similarities observed
between existing land use and existing zoning districts are primarily due to the reactionary
zoning methods practices by the City. Appropriate zoning designations are only assigned
as parcels become platted or as development takes place. As illustrated on the land use
map, some areas rezoned remain either temporarily or permanently vacant in the form of
undeveloped lots or outlots.
OTSEGO COMPREHENSIVE PLAN UPDATE
INVENTORY
OTS EGO
LAN D U S E
COMPREHENSIVE PLAN UPDATE
INVENTORY
0r�
LAND USE BREAKDOWN
Acreage
Percent
of Total
Residential
2,822
14.0
Commercial
122
.6
Industrial
16
.1
PSP
.8
Parks
E16
.4
Vacant Platted
252
1.3
Public Right -of -Way
800
4.0
Railroad
18
1
Rural/Agriculture
151866
78.7
TOTAL
20,152
100.0
SOURCE: Northwest Associated Consultants, Inc. 1996
Rural/Agriculture Land Use
The most predominant land use in Otsego is agricultural farming activities, comprising
78.7 percent of the City's total acreage. Based on the Wright County Soit Survey, much
of Otsego can be considered prime agricultural land.
A wide variety of farm types exist in Otsego. This is the result of a mixed pattern of land
suitability as well as a changing economy relative to urban markets. The distribution of
predominant farm types is illustrated on the following map. Dairy cattle farming is
concentrated in the west and central portions of the City, while crop farming predominates
throughout. Production of beef cattle and hogs are more limited and are concentrated in
pocket areas between areas of crop and dairy farming. While scattered throughout the
community, the majority of hobby farms in Otsego are located near the southeast corner
of the City, proximate to 70th Street.
OTSEGO COMPREHENSIVE PLAN UPDATE
INVENTORY
m
LAND USE
Recognizing the impacts associated with such uses, the City recently adopted new animal
feedlot regulations. These regulations prohibit the establishment of new animal feedlots
and allow existing feedlots to "double" in size (animal units).
Farm sizes are largest in the northwestern areas of the City, ranging up to 200+ acres.
Somewhat smaller acreages are found in the central and western districts, with
predominantly 40 to 120 acre operations throughout the remainder of Otsego. The hobby
farms which are concentrated in the southeastern corner of the Township range from 50
to 70.7 acres.
Residential development has consumed land previously utilized for agricultural purposes.
The sporadic residential development pattern tends to interrupt the homogeneous pattern
of agricultural activities.
OTSEGO COMPREHENSIVE PLAN UPDATE
I NVENTORY
52
Residential Land Use
Residential land use occupies nearly 14 percent of Otsego's total land area. The
predominate residential type is single family homes and manufactured homes. Over 87.3
percent of Otsego's housing stock has been built since 1970. While the majority of
housing stock is structurally sound, various neighborhoods have a need for improvement
and/or maintenance to enhance the general character of the area. Another prevalent
problem is lack of uniform control of outdoor storage within residential neighborhoods. Of
specific issue is outdoor storage relating to unscreened junk, recreational vehicles,
commercial vehicles and equipment and the number of accessory buildings.
Without public sewer being available, Otsego's residential development has been limited
to low density with lot sizes ranging from one to ten acres in size. The primary
concentration of development has occurred in large subdivisions located in the
northeastern portion of the City. The subdivisions platted in the northeast area of the
community in the mid 1970s reflects Otsego's strong growth during the period. New
subdivisions include resubdivision requirements that would allow for future public sewer
if made available.
The balance of the City displays a sporadic development pattern with small clusters of
residential lots interspersed within agricultural areas. This pattern of development
interrupts the contiguous pattern of farming activities and encumbers the previously
segregated agricultural uses.
Otsego's manufactured home subdivisions are concentrated within the east central part
of the City in three subdivisions and in the Riverbend Manufactured Home Park.
Remaining mobile homes are scattered throughout the Township on single parcels. There
are three manufactured home subdivisions located in Otsego: Vasseurs Oak Grove
Estates, 1 st-4th Additions; Walesch Estates, 1st and 2nd Additions; and Praught's
Addition, The Riverbend Mobile Home Park is the only mobile home park in Otsego and
is located near the intersection of Highway 101 and River Road. The older manufactured
home subdivisions show signs of deterioration with regard to both structural and site
appearance.
The City Zoning Ordinance governs the land use and placement of manufactured home
structures on land within the community. Currently, manufactured homes are only allowed
in existing manufactured home subdivisions, manufactured home parks, or in other areas
by conditional or special use permit.
OTSEGO COMPREHENSIVE PLAN UPDATE
INVENTORY
55
LAND IJSE
Medium/High Density Residential Land Use
Medium and high density type residential land use, in the form of townhomes and
apartment buildings, have not developed within the City. Multiple family housing is closely
tied to urban service (sanitary sewer and water) and is not anticipated unless such urban
service becomes available.
Public and Semi -Public Land Use Patterns
A limited amount of land area in Otsego is devoted to public and semi-public uses
(approximately .8 percent of Otsego's total acreage). This use category includes parks,
governmental buildings, churches, cemeteries, and semi-public utilities (telephone,
electricity, etc.).
Commercial Land Use Patterns
Commercial land use consists of only .6 percent of the total land use in Otsego with the
greatest concentration of commercial land use in Otsego located around principal and
minor arterials. Development along Highway 101 (intersections of County Roads 42 and
36), and the County Road 39/42 intersection area encompasses the most intense and
diverse commercial activity with the bulk of Otsego's retail and service commercial land
use.
For the most part, commercial land use is typified by individual establishments oriented to
major intersections or to residential developments in the form of "convenience commercial"
operations. The County Road 39/County Road 42 intersection has the highest
concentration of commercial land use and includes a child care center, a video rental
store, a liquor store, a veterinary clinic, a convenience grocery store, a commercial
recreation facility, and a branch bank. Commercial use also includes a conference center
development located on County Road 39 near the Island View and Arrowhead Estates
subdivisions. Other commercial development includes a gas station food market located
at the County Road 42 intersection of Highway 101 and varied commercial uses included
as part of the recent Frankfort annexation.
Also to be noted is the existence of home businesses in the community. It is estimated
that over 200 such businesses currently exist within Otsego in scattered locations. In
many cases, such businesses have been illegally established and have "outgrown" their
residential surroundings.
OTSEGO
COMPREHENSIVE PLAN UPDATE
INVENTORY
Industrial Land Use Patterns
Industrial uses represent .1 percent of the total land area. The majority %J industrial uses
are located adjacent to Highway 101 within the recently annexed Frankfort territory. Some
of the light industrial uses included in such annexation were: cabinet production, floor
covering, home insulation, farm equipment, and others. A partially developed industrial
park also exists in the southwest corner of the City. Currently, a trucking business is the
only occupant of the park, which is known to have questionable soil conditions (for sewage
treatment).
Future expansion of industrial land uses along the Highway 101 corridor will be largely
dependent upon the future availability of urban services in the City.
Undeveloped Land
The undeveloped land identified in the land use breakdown table (as illustrated on the
Land Use Map) has been subdivided for development, but remains vacant. The
immediacy of the prospects for development on these parcels varies considerably and are
closely tied to the current climate in the housing market, interest rates, sanitary sewer and
water availability, and other variables. Certain identified parcels within Meyer Addition,
Island View Estates and other areas have been platted for some time without complete
development, however, as the housing market variables change, residential concentrations
are more likely to be "filled in".
ZONING
Otsego is currently governed by the Otsego City Zoning and Subdivision Ordinances
adopted in 1992. Development applications are reviewed by the Planning Commission
and subject to approval by the City Council. The zoning map is revised and maintained
at the City level, with zoning changes generally taking place upon development
completion. This continually updating approach has produced a somewhat reactive
ordinance structure and development pattern. Instead of attaining cohesive land use
patterns that are consistent with the goals of the City, the zoning districts have been
subject to expansion and establishment as development takes place without regard for
future land use patterns.
OTSEGO COMPREHENSIVE PLAN UPDATE
I NVENTORY
57
L A N D U S E
The following map illustrates the current arrangement of zoning districts as of December
1996. It should be noted that the existing zoning map illustrates only those districts that
are currently established within Otsego. An approximately statistical breakdown of the
amount and proportion of land zoned for various uses is provided in the following table.
A description of all zoning districts follows the zoning area table.
1996 ZONING BREAKDOWN
Zoning
District
District
Classification
Acreage
Percent
of Total
Zoning
Type
Acreage
Percent
of Total
A-1
Agricultural Rural Service
16,172
80.3
Agriculture
16,365
81.3
A-2
Agricultural Long Range
Urban
193
1.0
R-1
Residential -Long Range
Urban Service
11227
6.1
Residential
3,321
16.4
R-2
Residential -Immediate
Urban Service (large lot)
395
2.0
R-3
Residential -Immediate
Urban Service
1,699
8.3
13-3
General Business
239
1.2
Business
239
1.2
I-1
Limited Industrial
37
.2
Industrial
95
.5
I-2
General Industrial
58
.3
PUD
Planned Unit Development
132
.6
PUD
132
.6
Total
201152
100.0
20,152
100.0
SOURCE: Northwest Associated Consultants, Inc. 1996
OTSEGO
COMPREHENSIVE PLAN UPDATE
INVENTORY
Z
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Rural/Agricultural Districts
A-1 Zoning District
The A-1, Agricultural -Rural Service District was established for the purpose of preserving,
promoting, maintaining and enhancing the use of land use for commercial agricultural
purposes, to prevent scattered and leap -frog urbanization and non -farm growth, to protect
and preserve natural resource areas, and to stabilize increases in public expenditures for
such public services as roads and road maintenance, police and fire protection, and
schools. The majority of land within the City is zoned A-1, Agricultural Rural Service.
A-2 Zoning District
The A-2, Agricultural Long Range Urban Service District was established for the purpose
of providing suitable areas of the City to be retained and utilized for low density residential,
open space, and/or agricultural uses and to prevent rapid urbanization and provide
economy in public expenditures. These are isolated district designations which lie on
periphery of urban development areas.
Residential Districts
R-1 � Residential -Long Range Service District (River Frontaael
This district provides suitable areas for low density residential uses within selected areas
of the Mississippi River corridor. Project densities for the R-1 District are limited to a
maximum one dwelling unit per two and one-half acres.
Otsego's R-1 Zoning Districts are primarily located in the northern edge of the City along
river frontage areas. Smaller R-1 Districts are scattered along the eastern edge of the
City.
R-2 Residential -Immediate Urban Service District
This district is established to provide for areas of the City where low density residential
development can take place and where urban services can be provided. The properties
are large in size and would commonly overlay sensitive areas of the community. Minimum
lot sizes for the R-2 District are limited to two and one-half acres.
OTSEGO COMPREHENSIVE PLAN UPDATE
INVENTORY
01
LA N D U S E
Otsego"s R-2 Districts are scattered throughout the City, along INC 85th Street, NE 81 st
Street, and in smaller areas along CSAH 37 and the western corner of 95th Street.
R-3 Residential -Immediate Urban Service District
This district provides for low to medium density single family detached dwelling units and
directly related, complementary uses in the immediate urban. Lot sizes within the R-3
District are limited to a minimum of one acre.
A large, contiguous area of the City, having an R-3 District zoning designation, is located
in the northeastern part of the City. Smaller R-3 District areas are scattered throughout
the City.
R-4, Residential -Urban Single Family District
An R-4 District is established to allow for high density single family dwelling units within
public or semi-public sewered areas of the community at a relatively dense urban scale.
There are currently no R4, Urban Single Family Districts located in Otsego.
R-5, Single and Two Family District
The major purpose of the district is to allow for high density single family dwelling units and
to introduce, on a restricted basis, two family dwelling units and directly related,
complementary uses in areas of the City which have publicly controlled sanitary sewer
service.
There are currently no R-5 Zoning Districts located in Otsego.
R-6 Townhouse�Quadraminium�and Two Density Multiple Family District
The purpose of the R-6 District is to provide for low to moderate density through the
mixture of one and two unit medium density dwellings and directly related, complementary
uses.
There are currently no R-6 Zoning Districts located in Otsego.
R-7� High Density District
This district is established to provide high density
complementary uses
OTS EGO
There are currently no R-7 Zoning
housing and directly related
Districts located in Otsego.
COMPREHENSIVE PLAN UPDATE
62
I NVENTORY
L A N D U S E
R-MH, Manufactured Housing Residential District
The purpose of the R-MH District is to provide a separate district for manufactured housing
parks, distinct from other residential areas. Such district designation includes specific
design/operational standards for such uses. While the City does have a manufactured
home park, there are no R-MH Districts in the City (park established prior to City
ordinances).
R-B Residential/Business District
This district is intended to provide for a transition in land use from residential to low
intensity business and allows for the intermixing of such uses.
There are currently no R-B Zoning Districts located in Otsego.
Business/Commercial Districts
B-1, Neighborhood Business District
This B-1 District is intended to provide for the establishment of integrated neighborhood
centers for convenient, limited office, retail or service outlets which deal directly with the
customer for whom the goods or services are furnished. The BA District is further
intended to provide for a transition between residential and commercial development.
There are currently no B-1 Zoning Districts located in Otsego.
B-2, H�hway Commercial District
The purpose of the B-2 District is to provide for and limit the establishment of motor vehicle
oriented or dependent high intensity commercial and service activities.
There are currently no B-2 Zoning Districts located in Otsego.
13
-3 General Business District
The purpose of the 13-3 District is to provide specifically for the regulation of high intensity
commercial uses located within the Central Business District of the City and other intense
commercial areas of the City. Small areas of 13-3 District are located along the County
Road 42/County Road 39 intersection.
OTS EGO
COMPREHENSIVE PLAN UPDATE
63
INVENTORY
L A N D U S E
B-W,Business/Warehousing District
The purpose of this district is UPIrovide for the establishment of wholesale and retail trade
of large volume or bulk commercial items, storage and warehousing. The overall character
of the BM District is intended to be transitional in nature, thus industrial uses allowed
within this district shall be limited to those which can compatibly exist adjacent to
commercial and lower intensity activities.
There are currently no B-W Zoning Districts located in Otsego.
B-C, Business Campus District
This district is established to allow business office, wholesale showrooms, and related
uses in an environment which provides a high level of amenities, including landscaping,
preservation of natural features, architectural controls, pedestrian trails, and other
features.
There are currently no B-C Zoning Districts located in Otsego.
Industrial Districts
I-1 Limited Industrial District
It is the intent of this district to provide for the establishment of industrial development in
a well planned manner. It is further the intent of this district to accommodate the eventual
relocation of existing home extended businesses within the community.
At this time, Otsego has two areas that are designated I-1 District. A small area at the
intersection of Highway 101 and CSAH 37 and an area included in the recent Frankfort
Township territory annexation.
I-2 General District
This district is established to provide areas suitable for the location of general industrial
activities which have adequate and convenient access to major streets and provide
effective controls for "nuisance" and pollution characteristics. It is further the intent of this
district to encourage industrial development in a compact and orderly manner.
Currently, a small area southwest of Interstate 94 is the only portion of the City to which
an I-2 zoning designation has been applied.
OTSEGO COMPREHENSIVE PLAN UPDATE
INVENTORY
L A N D U S E
Special Districts
INS Institutional District
The INS District is intended to provide a specific zoning district for facilities devoted to
serving the public. It is unique in that the primary objective of uses within this district is the
provision of services, frequently on a non-profit basis, rather than the sale of goods or
services. It is intended that uses within such a district will be compatible with adjoining
development and they normally will be located on an arterial street or thoroughfare.
The City Hall, Christ Lutheran Church, Otsego Elementary School and VFW recreational
fields are the only INS zoning properties in the City.
PUD, Planned Unit Development District
The purpose of the PUD, Planned Unit Development District is to provide for the
integration and coordination of land parcels as well as the combination of varying types
of residential, commercial and industrial uses.
Otsego's PUD Districts are located in small isolated areas throughout the City and have
been applied to properties with unique circumstances. Riverwood Conference Center is
part of one such PUD.
Shoreland Management Overlay District
The purpose of this district is to reduce the effects of overcrowding, to prevent polluting
waters of the community, to provide ample space on lots for sanitary facilities, to minimize
flood drainage, to maintain property values, and to maintain natural characteristics of
shorelands and adjacent water areas by controlling lot sizes, placement of structures on
lots, and alteration of shoreland areas.
Wetlands Overlay District
The purpose of this district is to insure that the wetland resources within the City of Otsego
are protected and conserved. Wetland resources serve to provide food, shelter and
habitat for fish and wildlife, store surface runoff and reduce flooding damages, replenish
subsurface water surplus, provide outdoor recreation areas, and enhance the natural
beauty of landscape within the City.
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65
L A N D U S E
FP, Floodplain Overlay District
The Floodplain District is created for the purpose of protecting the public health and safety
and to minimize property damage and pollution from flood water. Boundaries for the
Floodplain Districts are outlined on the Federal Flood Insurance Map. The Floodplain
District is further subdivided into two sub -districts (Floodway and Flood Fringe are
identified below).
Floodway District
This includes the channel of a river or stream and those portions of
floodplains which are required to carry and discharge the regional flood.
District includes those areas designated as floodway on the Floodway
Floodway Map.
Flood Fringe District
the adjoining
The Floodway
Boundary and
This district includes the area outside of the floodway, but is subject to inundation by the
100 year regional floods. The Flood Fringe District includes those areas designated as
floodway fringe on the Flood Boundary and Floodway Map.
WSRR Wild and Scenic Recreational River District
The purpose of this district is to protect and preserve the scenic, recreational, natural and
historical values of the Mississippi River in the City of Otsego by carefully controlling
development of this river corridor consistent with the State Wild and Scenic River Act and
Minnesota Regulations.
As illustrated on the existing zoning district map, Otsego's Wild and Scenic River District
is located along the edge of the Mississippi River.
The Shoreland Management Overlay Districts are located on the zoning map.
Heritaae Preservation District
The purpose of this district is to safeguard the heritage of the City, to promote, preserve
and continue use of historic sites and structures for the education and general welfare of
the people of the City. Currently, no properties within the City have been designated as
historic sites (through a zoning action).
OTSEGO COMPREHENSIVE PLAN UPDATE
INVENTORY
OAJO
LAN D U S E
ZONING ORDINANCE
The current Zoning Ordinance includes the most up-to-date development standards and
requirements in the City. The City's 1991 Comprehensive Plan was partially founded upon
ground water pollution concerns associated with on -site septic systems. With this in mind,
the ordinance attempted to establish sewer in the Highway 101/CSAH 42 corridor as a
"staging area" for possible sanitary sewer extension. Otsego has no public water and
sewer service at present, however, the City is investigating the feasibility of such a system
either exclusively by the City or by providing a joint utility system with Dayton. Additionally,
some preliminary discussions have taken place regarding the possibility of extending
sanitary sewer from the City of Elk River.
OTSEGO COMPREHENSIVE PLAN UPDATE
INVENTORY
MJM
L A N D U S E
AGE OF STRUCTURES
Patterns of structure age in Otsego reflect a pattern in which a considerable amount of
fairly new development has taken place. New development has created a core along
Highway 39 in the northwestern portions of Otsego. New residential development has also
spread to several other locations to the northwest near the Mississippi River and in
scattered locations throughout the City. The table below does not reflect the total structure
age for developments in areas that were recently annexed from Frankfort Township.
Census and building permit information presented in the following table indicates that
roughly 12.7 percent of Otsego's housing units were constructed prior to 1970, while about
87.3 percent have been constructed since 1970. Although structure age considered by
itself is not necessarily a determining factor, it is often the case that the older portions of
a community correspond to those areas in which substandard facilities, failing septic
systems, and physical deterioration constitute a problem.
OTS EGO
HOUSING UNITS BY YEAR STRUCTURE BUILT
Year Built
Number
Percent
of Total
1990
- 1995
951
35.1
1980
- 1989
327
12.1
1970
- 1979
11084
40.1
1960
- 1969
144
5.3
1950
- 1959
45
1.7
1940
- 1949
6
.2
1939
or
earlier
149
5.5
TOTAL
21706
100.0
SOURCE: Building Permit
Info., U.S.
Census 1990
COMPREHENSIVE PLAN UPDATE
INVENTORY
L A N D U S E
LAND AND STRUCTURE VALUE
The way in which individuals seek to use land for various purposes is signantly
influenced by the land value structure in a particular area. With respect to land use
planning, land value structure indicates whether a proposed location of certain uses or
groups of uses is feasible in terms of land cost and whether or not the use as well as the
intensity of use are in the best interest of the community. Land value structure is also
useful to community officials in determining tax base distinction. The table below shows
the housing values of single family homes within Otsego.
1990 VALUE OF OWNER OCCUPIED
HOUSING UNITS
Value
Number
Percent
0 - $491999
36
4.0
$50,000 to $99,999
744
83.0
$1001000 to $149,999
90
10.0
$150,000 to $199,999
21
2.3
$2001000 to $299,999
5
.6
$300,000 and over
1
.1
TOTAL
897
100.0
SOURCE: 1990 U.S. Census
As shown above, the vast majority (83 percent) of homes within Otsego are valued
between $50,000 and $99,999. While this indicates that the City has a relatively healthy
apportionment of affordable homes geared toward low end moderate incomes, it also
provides a relatively narrow range of single family housing values in the community.
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71
OTSEGO
L A N D U S E
COMPREHENSIVE PLAN UPDATE
INVENTORY
T R A N S PORT A T I ON
SUMMARY
■ The Minnesota Department of Transportation has developed the functional
classification system for the City's streets and highways based on anticipated usage
from five to ten years in the future.
■ Traffic volumes on Otsego's streets and highways is increasing along with
population and development.
■ Wright County is proposing a realignment of the CSAH 37/19 intersection in
Albertville. Such improvement is anticipated to be completed in 1997. This
roadway realignment will affect traffic patterns in Otsego, particularly along County
Road 19, Additionally, Wright County has identified an extension of 70th Street (to
provide a direct connection between Highway 101 and County Road 19) as an
issue which should be subject to further study.
■ The Burlington Northern rail line bisects the southwestern corner of Otsego and in
close proximity to I-94. This line serves primarily the NSP nuclear power plant in
Monticello which is scheduled to close in 2010.
■ There is no intra-city bus service in Otsego.
OTS EGO
COMPREHENSIVE PLAN UPDATE
73
(NV ENTORY
T RAN S PO R TA T 1 O N
ROAD AND HIGHWAY NETWORK
While the City of Otsego does contain a number of transportation modes, the primary
emphasis in this section will be placed upon the street and highway network. The
significance of these existing and developing networks in terms of economic, social and
recreational considerations makes them a central concern for comprehensive planning.
FUNCTIONAL CLASSIFICATION
The streets and highways within Otsego are classified as federal, state, county, or local
roadways. The functional classification system for the City's streets and highways,
developed by the Minnesota Department of Transportation, is based on anticipated usage
from five to ten years in the future, and is constructed consistent with standards for
functional classifications described in the functional classification table. This classification
system will have considerable impact on funding assistance and design criteria for future
network improvements, especially in regard to state and county funding and administration.
The following classifications are identified by the City.
Principal Arterials
Principal arterials function as major transportation arteries. They serve to connect large
population centers to cities in other portions of the state. These roadways are designed
for high speed movements and for high vehicle volumes, including commercial traffic and
are intended to serve longer trips. The only principal arterial roadway within the City of
Otsego is Highway 94.
Minor Arterials
Minor arterials also place more emphasis on mobility than on providing land access. Minor
arterials typically connect cities and other major activity centers to each other and to the
principal arterials. They may also provide relief for congestion on parallel principal
arterials. The minor arterial roadways within the City of Otsego are Highway 101, CSAH
39, and the segment of CSAH 42 east of Highway 101, to the intersection of County Road
30.
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T R A N S PO R T A T I O N
Major Collectors
Major collectors are roadways which place emphasis on both mobility and land access.
Major collectors typically connect neighborhoods within and between sub -regions. Major
collector roadways within the City are CSAH 42 west of Highway 101, CSAH 37 continuing
on Odean Avenue and County Road 36.
Minor Collectors
Minor collectors provide service between major collectors and minor arterial streets to
provide critical connections to sub -regions to relieve local streets of heavy traffic, but also
provide for limited direct lot access when necessary. Minor collector streets within the City
include 85th Street from CSAH 42 to Ohland Avenue, Ohland Avenue from 96th Street to
85th Street, Page Avenue from CSAH 39 to 85th Street.
Local Roadways
All other roadways that do not fall into the functional classification discussed above are
local roadways. Their primary function is to provide property access. Typically these are
city -owned roads.
TRAFFIC VOLUMES
The growth of population within the City has been accompanied by increases in the
volume of traffic carried by streets and highways. The following map shows traffic volumes
for major thoroughfares in Otsego for 1988 and 19923he 1996 traffic volumes will be
published by MnDOT in Spring of 1997. In almost every case, the 1992 volumes show
a significant increase over the 1988 volumes. While these increases are quite substantial
along certain linkages, the average annual growth rate in traffic volume is roughly 5
percent over the four year period.
The pattern of traffic shown on the following map indicates the City's most dominant
circulation routes occur at its periphery. With development occurring south of CSAH 39
in the northeastern part of the City, increased volumes have occurred in part of this area
from Nashua Avenue intersection to CSAH 42.
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77
OTS EGO
COMPREHENSIVE PLAN UPDATE
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T R A N S P O R T A T I ON
ROADWAY FUNCTIONAL CLASSIFICATION SYSTEM
CHARACTERISTICS
Characteristic functional Class
Principal Arterial
Interstate freeway Other Principal Arterial Minor Arterial Collector Local Street
System Mileage Suggested federal upper limits for interstate and
other principal arterials combined: urban 10%
Percent of Travel Suggested federal limitations for (nterslae
(VMT) freeways and other principal arterials combined:
40-65%
Intersection
Parking
Large Trucks
Management Tools
Vehicles Carried
Posted Speed Limit
Right-oi-way
Transit
Accommodations
Grade separated
h►»
No restriction
Ramp metering,
preferential treatment
for transit, interchange
spacing
Desirable; grade
separated, Minimum:
high -capacity controlled
at grade intersections
None
No restriction
Ramp metering,
preferential treatment
for transit, traffic signal
progression, staging of
reconstruction,
Intersection spacing
Suggested federal
limitations for principal
arterials and minor
arterials combined:
urban 15-25%
Suggested federal
limitations for principal
arterials and minor
arterials combined:
65 80%
Traffic signals and
cross street slops
Suggested federal
limilations: urban
5 10%, rural 20-35%
Suggested limitations:
5 10%
4-way stops and
some traffic signals;
local street slops
Suggested federal
limitations; urban
65 80%, rural 63-75%
Suggested federal•
limitations: 1 M0%
As required
Restricted as necessary Restricted as necessary Unrestricted
Restricted as necessary Restricted as necessary Permitted as necessary
7railic signal
progression, land
access management,
preferential treatment
for transit
Urban; 25,000-150,000 15,000-100,000 5,000-30,000
Rura1:5,000-50,000 2,500-25,000 1,000.10,000
Urban: 45-55
Rural Legal limit
300'
Priority access and
movement for transit
vehicles In peak
periods where needed
Source: Metropolitan Council
OTS EGO
40-50
Legal limit
100'•300'
Priority access and
movement for transit
vehicles in peak periods
where possible and
needed
30-45
Legal limit
150'
Preferential treatment
where needed
Number of lanes,
traffic signal timing,
land access
management
1,000-15,000
250-2,5000
30.40
35-45
60'-100'
Cross sections and
geometries designed for
use by regular route
buses
Intersection control,
cut -de -sacs, diverters
Less than 1,000
Less than 1,000
Maximum 30
Maximum 30
50'-80'
Normally used as bus
routes only in
non-residential areas
COMPREHENSIVE PLAN UPDATE
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INVENTORY
T R A N S PORT A T I ON
IMPROVEMENT PLANS
Until recently, the area of Highway I U I in the northeastern corner of Wright County had
been an area of high congestion. This roadway has recently been upgraded to four lanes
to accommodate the high traffic levels. As a result of such improvement, many City roads
were terminated as cukde-sacs to control road crossings along Highway 101. Existing
County roads continue to provide road crossings on Highway 101. This upgrade will
influence the pace and location of development within Otsego.
The Wright County Highway Department has plans to improve certain segments of County
roads within the City of Otsego and surrounding communities over the next two years. The
County is proposing a roadway realignment of the CSAH 37 and 19 intersection in
Albertville. The ramp is anticipated to be completed in 1997. This roadway realignment
will affect traffic patterns in Otsego.
While not specifically programmed, Wright County has also noted that an extension of
70th Street, to provide a direct link between Highway 101 and County Road 19, is an
improvement that should be subject to further study.
Other street improvements recommended are adding off-street pedestrian and bike paths
along CSAH 39. Many intersection improvements along Highway 101 have been identified
as seen on the following map. No definite plan has been scheduled for these
improvements.
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T R A N S PORT A T I ON
RAIL FACILITIES
The Burlington Northern rail line bisects the southwestern corner %J Otsego and in close
proximity to 1-94. Burlington Northern operates only one train per month at speeds
between 25 mph and 50 mph. This line serves primarily the NSP nuclear power plant in
Monticello. This plant, which is scheduled to close in 2010, may have a bearing on the
long term future of this rail facility. In this event, serious consideration should be given to
transforming the right-of-way into a recreational corridor for use by pedestrians and
bicyclists. This would require collaboration with several surrounding communities through
which the rail line runs.
AIRPORT FACILITIES
As shown on the following map, Otsego lies proximate to a number of airport facilities.
Minneapolis -St. Paul International serves as the region's major airport by providing area
residents with air access to national and international markets. Other area airports serve
primarily to relive the major airport and serve corporate and small aircraft and
accommodate the recreational needs of area residents.
BUS SERVICE
Commercial passenger bus service is not provided within either Otsego or the City of
Albertville. However, Greyhound Bus Lines does provide passenger service to the City
of Elk River, which lies just north of Otsego on Highway 101. Similar to air service, the
majority of Otsego bus travel needs are provided by the larger population centers which
surround the City (i.e., St. Cloud, Buffalo, Minneapolis),
SENIOR CITIZEN TRANSPORTATION
Wright County Human Services provides a senior citizen transportation service on a
County -wide basis. Drivers are area residents who volunteer their time and private vehicle
for door-to-door ride service.
OTSEGO COMPREHENSIVE PLAN UPDATE
INVENTORY
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C O M M U N I T Y F A C I L I T I E S
SUMMARY
■ The Otsego County Park and the Prairie Park are currently the only parks within the
City. Play areas provided by the new Otsego Elementary School, constructed in
1994, and the VFW fields also supplement the City's recreational needs.
■ The Mississippi River borders Otsego on the north and east. This section of the
river is part of a canoe route designated by the Department of Natural Resources.
■ In 1993, a new Otsego City Hall was constructed west of Nashua Avenue and north
of 85th Street. This hall is utilized for City administration and community
gatherings.
■ Police protection is provided by the Wright County Sheriff on a contract patrol
basis. In case of emergencies, the 911 number provides direct contact and 24 hour
on -call officers at the County Sheriff's Department.
■ The City of Otsego contracts with four fire departments -Albertville, Elk River,
Monticello and Rogers Volunteer Fire Departments.
■ The City of Otsego is served by three independent school districts. These include
St. Michael -Albertville 885, Elk River 728, and Monticello 882.
■ A waste water treatment facility study has been prepared for Frankfort Township
(former), City of Otsego and Dayton which examines the feasibility of providing
sanitary sewer service to the said jurisdictions. The study proposes to provide the
east part of the City to be served with a trunk sewer facility, a collection system in
the area of TH 101 and CSAH 42. Alternatively, preliminary discussions with the
City of Elk River have begun concerning the possible extension of sanitary sewer
service to the City of Otsego.
■ Storm water drainage is handled primarily by naturally occurring drainage swales
and ponding areas and by ditches constructed along Otsego's roadways. The City
has experienced major problems during seasonal thaws and rainfalls.
OTSEGO
COMPREHENSIVE PLAN UPDATE
INVENTORY
COM M U N IT FACI I_ITI ES
The Otsego County Park and Prairie Park are currently the only parks within the City. As
illustrated on the following Community Facilities Map, Otsego County Park covers roughly
85 acres and is located west of Great River Road (CSAH 42), along the Mississippi River.
The park includes such amenities as picnic areas with shelters, limestone trails, a play
field, a tot lot, toilets, and canoe access. Park amenities are provided with no entrance
fees. In 1993, the County Park was expanded by 55 acres. The expansion plan included
the extension of the existing trail system, and the park's prairie restoration project.
Prairie Park, which lies adjacent to the City Hall property, consists of approximately 69
acres of park land. A large portion of this area is prairie restoration. Three softball
diamonds, one soccer field, two volleyball courts, and a number of picnic areas also exist
in the park. A trail system is also part of the park plan which connects to activity centers
in the City. An ice skating rink was constructed in 1994 proximate to the Otsego City Hall.
Tentative plans exist to relocate the former Otsego Town Hall on this property and convert
the structure to a historic museum.
Play areas and fields provided by the new Otsego Elementary School, constructed in
Otsego in 1994 and VFW fields, also supplement the City's recreational needs.
A Comprehensive Park, Trail and Recreation Plan was adopted by the City in 1992. This
plan identifies possible future park land development areas. The Citys Subdivision
Ordinance imposes park and trail dedication requirements as part of the subdivision
approval process intended to fund park maintenance/improvements.
WATERWAYS
The Mississippi River borders Otsego on the north and east. This section of the river is
part of a canoe route designated by the Department of Natural Resources. There are
public accesses to the Mississippi River located at the northern end of Kadler and Nashua
Avenues, The City owns the roads, but no surrounding land. Boats can be launched, but
there is little room for off-street parking and related recreational facilities. As stated
earlier, there is a carry -in canoe access to the Mississippi River in the Otsego County
Park.
A segment of the Crow River borders the recently annexed Frankfort Township territory.
OTSEGO COMPREHENSIVE PLAN UPDATE
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C O M M U N I TY FA C I L IT I E S
Wildlife Management
Wildlife management areas are located around Rice Lake and near 67th Street and Odell.
These areas are owned by the State of Minnesota and managed by the Department of
Natural Resources,
Trails
A paved shoulder marked as a bicycle route parallels Wright County Road 42 between the
City of Dayton and Highway 101. Otsego's only sidewalk exists on the west side of Parrish
Avenue, running for a half -mile south of the Mississippi. It crosses the river and provides
a pedestrian connection between the Cities of Otsego and Elk River.
The Comprehensive Parks and Trail Plan has identified future pedestrian and bike trail
areas throughout the City.
Trails should be planned to connect activity centers such as local parks, the school, VFW
fields, the Otsego County Park, City Hall, and commercial areas. Paved shoulders on
County Road 39 should be identified as a bike trail.
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OTSEGO
C O ICI M U N I T 1� FAG I L I T I E S
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C ®M M U N I TY r A G I L I T I E S
PUBLIC FACILITIES
Government Buildings
In 1993, a new Otsego City Hall was constructed west of Nashua Avenue and north of 85th
Street. This hall is utilized for City administration and community gatherings (i.e., wedding
receptions). Space exists for future facilities (fire hall, post office, etc.) should the need
arise.
Police Protection
Otsego currently contracts with the Wright County Sheriff's Department for police
protection and enforcement. One patrolman is assigned to Otsego on a daily basis with
Bight hour patrol service. The Sheriff's Department provides other police protection
services available by them.
Fire Department
The City of Otsego contracts with four fire departments -Albertville, Elk River, Monticello
and Rogers Volunteer Fire department. Properties to the west of Nashua Avenue are
serviced by the Albertville Volunteer Fire Department. Properties to the east of Nashua
Avenue are serviced by the Rogers Volunteer Fire Department,
OTSEGO COMPREHENSIVE PLAN UPDATE
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95
C O M M U N I TY F A C I L I T I E S
SCHOOLS
Otsego residents are served by three independent school districts. These include St.
Michael -Albertville 885, Elk River 728, and Monticello 882. These school district
boundaries, as they currently exist, are illustrated on the following map. District 728
covers the largest portion of Otsego and significant but smaller portions of the community
are served by Districts 882 and 885.
Districts 728, 882 and 885 serve considerable areas outside of Otsego and have all of the
District's facilities located outside of Otsego boundaries. The facilities that serve Otsego
are illustrated on the following table and indicate the current 1989 enrollments. It should
be noted that preliminary discussions have taken place regarding the adjustment of the
School District boundaries as they presently exist. Thus, changes in the boundary
depictions may be subject to change in the near future.
Growth in student population in the Otsego area has increased since the 1980s. In 1990,
31.9 percent of the population was between 5-24 years old in the "school age" category,
with pre-schoolers of between 24 years of age making 8.5 percent of Otsego's population.
Monticello School District 882 has experienced a surprisingly constant rate of growth in
student population. There is a need for additional building capacity for the middle school
aged children. It is likely that the high school will need to be updated or replaced in the
near future due to its age.
According to a representative of the Elk River School District, the district is experiencing
major problems of overcrowding within their schools, in particular at the junior and senior
high schools. Otsego Elementary School was constructed in 1994 to accommodate the
high increase in the elementary school population in the City of Otsego. District 728 has
tried unsuccessfully in two referendums to gain monetary approval for construction of new
schools.
The St. Michael -Albertville School District is not experiencing overcrowding to the extent
of that incurred by the Elk River School District. The most dramatic increase is within the
junior high school, where enrollment has increased significantly in recent years. As a
result, District 885 is now considering expanding the junior high school.
Increasing enrollment projections in Districts 728, 882, and 885, coupled with school
capacity concerns, will impact the anticipated enrollment needs of Otsego. If Otsego's
growth trends continue with increases in the school age population, the issues surrounding
school capacities and district enrollment will need to be incorporated in the comprehensive
planning process.
OTSEGO COMPREHENSIVE PLAN UPDATE
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C O M M U N I TY FA C I L I T I E S
SCHOOL DISTRICT STATISTICS
1995
Enrollment
District 885-St. Michael -Albertville (SMA)
SMA Primary School
516
SMA Elementary School
608
SMA Middle School
361
SMA Senior High School
587
TOTAL
21072
District 728-Elk River
Handke Elementary School
283
Lincoln Elementary School
646
Parker Elementary School
618
Rogers Elementary School
576
Zimmerman Elementary School
771
Meadowview Elementary School
659
Otsego Elementary School
643
Sauk Junior High School
960
Vanden Berge Junior High School
933
Elk River Senior High School
11605
TOTAL
77694
District 882-Monticello
Pinewood Elementary East/West
11700
Monticello Middle School
800
Monticello High School
900
TOTAL
31400
SOURCE: School Districts 885, 728, and 822
OTS EGO
COMPREHENSIVE PLAN UPDATE
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C O M M U N I T Y F A C ILI T IES
SANITARY SEWER SYSTEM
The City's Subdivision Ordinance includes provisions for future sanitary sewer service
within the community. Where structures are to be placed on large or excessively deep lots
which are subject to potential replat, the preliminary plat must indicate a logical way in
which the lots could possibly be resubdivided in the future to allow for future services on
these subdivisions. Ground water contamination and pollution issues have currently
become serious enough to require immediate attention. These are currently being
addressed through mandatory septic system pumping, a point of sale ordinance, and City
monitoring of ground water quality. Continued growth pressure will increase the need for
immediate attention of these issues.
An area waste water treatment facilities study was prepared by Bonestroo, Rosene,
Anderlik and Associates for Frankfort Township, City of Otsego and Dayton. The study
proposes to provide the east part of the City to be served with a trunk sewer facility, a
collection system in the area of Highway 101 and CSAH 42. Alternatively, preliminary
discussions have also taken place regarding possible extension of sanitary sewer service
from the City of Elk River. The establishment of a sewer plan is a paramount issue in
devising a growth strategy for the community.
STORM DRAINAGE
Storm water drainage is handled primarily by naturally occurring drainage swale and
ponding areas and by ditches constructed along Otsegos roadways. The current system
of storm water drainage has proven inadequate in the past. The City has experienced
major problems during seasonal thaws and rainfalls.
A storm water drainage report was prepared in 1995 by Hakanson Anderson Associates
Inc. as an aid of development applications and as a framework under which existing
drainage problems can be evaluated. From such report, a storm sewer policy was
developed, where drainage districts delineation was defined, and needs for surface water
runoff control were identified. The City policy developed has resulted in the establishment
of storm water impact fees (required as part of subdivision approval) to help fund future
storm water improvements.
Additionally, the Otsego Creek Authority has been established for the purpose of
regulating the use of the tributary including, but not limited to, clean up, monitoring, and
easement establishment.
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E C O N O M I C P R O F I L E
SUMMARY
■ The nature of Otsego's future development potential depends to a great extent on
the availability of sewer and water. Additionally, growth will be influenced by local
regional and national economic and social trends.
■ Over the last ten years, Otsego has issued an average of 44 building permits for
new home construction per year. Building permit data suggests a surge in
residential growth during the early 1990s, however, since 1993, there has been a
steady decline. Such decline is, however, likely a result of a lack of large tracts of
"developable" land within the immediate urban service area.
■ Otsego's population is projected to increase between 6,305 and 6,530 by the year
2000 and between 7,450 and 7,898 by the year 2010. Based upon the Wastewater
Treatment Facilities Plan, which assumes the availability of sewer and water,
population is anticipated to increase within the sewer service area from 1,080 in
1996 to 2,330 in 2016. Such estimate is, however, considered to be conservative.
■ Under the traditional growth strategy, the projected 2010 residential land demand
with overage is between 959 and 1,142 acres.
■ Under the traditional growth strategy, the projected 2010 commercial and industrial
land demand with overage is 54 acres. Otsego's commercial and industrial land
demand is limited due to the lack of sewer and water, a trade area that is restricted
by competitive facilities, physical barriers, limited trade area population and a large
commuter population.
■ Projecting for future commercial and industrial land demand for Otsego is difficult
to predict given the uncertainty of the availability of sewer and water, and the
upgrade of Highway 101 to a four -lane highway.
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E C O N O M I C P R O F I L E
POPULATION AND HOUSEHOLD PROJECTIONS
Background and Methodology
The nature of Otsego's future development potential depends to a great extent on the
availability of sewer and water. Additionally, growth will be influenced by local, regional
and national economic and social trends. Growth is limited locally by a City's ability to
provide residents and businesses with public services. Regional trends that impact
growth, include the growth rate and patterns of the Twin Cities Metropolitan area. National
trends influencing growth in Otsego include mortgage rates, and gasoline prices which
influence residential development and commuter populations.
Otsego's population has grown steadily over the past 10 years. With the availability of
municipal services being uncertain, the City's development and growth will remain rural
and suburban in nature. The provision of municipal services such as sewer and water
would, however, allow for greater development densities than are currently allowed and
likely escalate growth rates.
The population and land absorption projections are intended to outline the service and
land use demands the City of Otsego may expect in the future. Using these projections,
the City may establish strategies for providing future services. Through proper planning,
the City can manage and stage improvements in a fiscally responsible manner, insuring
financial solvency and environmental quality concurrently. The role of population
projections in this planning is central. As such, the provision of accurate projections is a
primary focus of this report as is support of municipal service policy development.
Due to the range of variables that will shape the future development within the City, in
particular the issue of sewer and water availability, three development scenarios will be
discussed within this section. These three scenarios are described as follows:
• No Growth. So as to proliferate ground water pollution concerns resulting from
continued unsewered development, the no growth strategy encourages infill
development of existing plats, and no further division of lands is allowed.
• Traditional Growth. This strategy is a continuation of the City's current
development philosophy which is to permit growth on a phased basis, providing for
a logical extension of urban growth and related community services.
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E C O N O M I C r R 0 F I L E
• Rapid Growth. The third development strategy assumes that the City will be
benefitted with sewer and water capabilities. This strategy shall also encourage
growth on a phased basis with a logical extension of urban growth and related
community services.
Local Growth
Due to the lack of available public sewer and water, local growth in Otsego is limited.
Such sewer service would allow for more intense urban land and densities. As shown
below, the City issued building permits for a total of 445 residential dwelling units between
1986 and 1995. However, the building permit data does suggest a decline in the
residential development from 1993 through 1995.
OTS EG O
BUILDING PERMIT SUMMARY
Single Family
Commercial
Industrial
Total
1986
30
-
-
30
1987
31
-
-
31
1988
30
-
-
30
1989
28
-
-
28
1990
54
1
-
55
1991
34
2
-
36
1992
71
-
-
71
1993
112
-
-
112
1994
38
3
-
41
1995
17
1
1
19
Total
445
7
1
453
86-95
Average
44.5
.7
.1
45.3
SOURCE.
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E C O N O M I C P R O F I L E
Population Projections
The projections below are based upon the building permit data shown above, as well as
data included in the Physical/Social Profile of the Inventory. As such, these projections
reflect current development trends in the community, the ability to annex additional land,
and current land use policies. In the event of any significant changes in City Policy or
development influences, these projections need to be revised to reflect the changing
situation.
The table below projects Otsego's future household and population growth through the
year 2010. In projecting this growth, the number of residential units added to the City's
existing housing stock is converted to households by applying the City's residential
occupancy rate of 98.9 percent (U.S. Census, 1990) The resulting household figure is
converted to a population estimate by multiplying it by the median household size for the
years 2000 and 2010.
In order to anticipate a potentially stronger future growth rate, both slow growth and strong
growth scenarios have been calculated. The slow growth scenario calculations are based
on building permit data of the last ten years, minus the two strongest years of growth, in
order to eliminate any temporary fluctuations in the development trends. The strong
growth scenario conversely, includes building permit data of all of the last ten years, in
anticipation of a trend toward an increasing growth rate. Growth in Otsego will be based
upon the following factors:
POPULATION &HOUSEHOLD TRENDS AND
PROJECTIONS
1980
1990
1995 State
Dem. est.
2000
(slow)
2000
(strong)
2010
(slow)
2010
(strong)
Households
11397
11588
11890
11958
21028
21328
21468
H.H. Size
3.41
3.27
3.24
3.22
3.22
3.20
3.20
Population
41769
5,219
6,116
6,305
6,530
7,450
7,898
Source:
U.S. Census, 1980, 1990
State Demographer Estimate (1995)
Northwest Associated Consultants, Inc.
As tabulated above, Otsego's population is anticipated to continue to increase through the
year 2010 under both the strong and slow growth scenarios. Under the slow growth
scenario, Otsego can expect to add approximately 111 individuals per year, while the
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ILI
E C O N O M I C P R O F I L E
strong growth scenario estimates a population increase of approximately 134 individuals
per year. Otsego has an increasing number of young families with children, thus, the
average household size is anticipated to decrease at a rate slower than previous trends
indicate.
Residential Land Demand and Absorptions
The growth trends and projections discussed previously provide a foundation for projecting
land use demand for the next fifteen years. This demand will represent the future growth
of Otsego in terms of residential, commercial, industrial and public land use.
Again it must be noted that these projections may be influenced by trends beyond the
City's control, such as the availability of sewer and water, regional growth trends and
mortgage rates. In consideration of this, the projections contain an inherent degree of
uncertainty. However, given the function of the Comprehensive Plan to establish a basic
framework for accommodating future growth, the projections which follow provide the
necessary structure, if given reasonable flexibility. Again, three development scenarios
are examined for future residential, industrial and commercial growth.
Residential - No Growth
Under the no growth scenario, the City shall encourage infill development of land that has
already been platted for development. Under this development option, the City reduces
the potential for additional pollution within the City by limiting the number of additional on -
site septic systems, and preserves the City's existing agricultural land. Population of the
City would remain fairly constant, as virtually all of the platted residential land within the
City has been developed.
Residential -Traditional Growth (No Sewer)
Land absorption rates (the conversion of rural/vacant land to an urban use) were
developed for residential and public uses and a determination was made on how these
uses would impact the vacant/rural areas of the City. To anticipate possible fluctuations
in the future growth rate, both slow land demand and strong land demand scenarios have
been calculated. The projections are based upon the Traditional Growth scenario, with
no sewer and water.
OTSEGO COMPREHENSIVE PLAN UPDATE
INVENTORY
105
E C O N O M I C P R O F I L E
LAND DEMAND IN ACRES (Slow Growth)
Based Upon
"Slow Growth
Scenario
Residential
(1)
Public
Streets
Park
Total
1995-2000
185
14
27
14
240
2000-2010
370
27
55
27
479
(1) Based on one unit per acre
LAND NECESSARY (in acres) FOR "SLOW" GROWTH DEVELOPMENT
1995-2000
240
2000-2010
479
1995-2010
719
5 year "overage"
959
Sources: City of Otsego Building Permit Data, U.S.
Northwest Associated Consultants, Inc
Census, 1990,
LAND DEMAND IN ACRES (Strong Growth)
Based Upon
"Strong" Growth
Scenario
Residential
(1)
Public
Streets
Park
Total
1995-2000
220
16
33
16
285
2000-2010
440
33
66
33
572
(1) Based on one unit per acre
LAND NECESSARY (in acres) FOR "STRONG"
GROWTH DEVELOPMENT
1995-2000
285
2000-2010
572
1995-2010
857
5 year "overage"
1,142
Sources: City of Otsego Building Permit Data, U.S. Census, 1990,
Northwest Associated Consultants, Inc.
OTSEGO
COMPREHENSIVE PLAN UPDATE
106
INVENTORY
E C O N O M I C P R O F I L E
It should be noted that the preceding land demand calculations were based upon the
average development that has occurred over the past ten years, largely within the City's
immediate urban service area. However, the urban service area, as it currently exists, is
nearly fully developed. Thus, the immediate urban service area would need to be
expanded in order to develop at the pace that occurred over the last ten years.
Residential development is currently the most predominant urban land use within the
community. This trend is anticipated to continue into the next century. Based upon the
population projections calculated above the City of Otsego can anticipate a residential,
demand of between 719 acres and 857 acres by the year 2010. These projections include
land necessary for public buildings and facilities, streets, and parks. This calculation is
based upon the amount of land necessary to accommodate and provide services for the
projected growth.
In order to provide some adjustment "bounce" to accommodate any surge in growth, these
acreages have been increased by 30 percent. The anticipated land demand with overage,
therefore, is projected as between 959 acres and 1,142 acres.
As previously stated, the determination of the City's projected land absorption is important
in identifying the potential impacts of future growth upon the vacant and rural areas of the
City.
Residential -Rapid Growth (With Sewer)
Under the rapid growth scenario, growth is permitted on a phased basis, providing for a
logical extension services including sewer and water. Growth can be expected to increase
at a more rapid pace than expected under the Typical Growth scenario, as there would be
an increase in new development densities.
Population forecasts were developed for the City of Otsego within the June 1996
Wastewater Treatment Facilities Plan which was completed by Bonestroo and Associates
for the City of Otsego, the City of Dayton and Frankfort Township. These projections were
forecasts for population were confined to a "sewer service area" within the City of Otsego
as defined in the plan. This area is located along both the west and east side of Highway
101. The forecasts are as follows:
OTSEGO COMPREHENSIVE PLAN UPDATE
INVENTORY
107
Year
Existing
199&2006
200&2016
Ultimate
E C 0 N 0 M e C P R O F I L E
Population
1, 080
1, 700
2,330
3, 940
Land Demand
(In Acres)
Assumptions: 1. Residential growth confined to the
"sewer service area"
2. 20,000 square foot lots anticipated
The land demand calculations should be considered the maximum acreage necessary for
development as they do not take into account the development of multiple family dwellings.
Multiple family development would occur at roughly one unit per 2,000 to 4,000 square
feet. Therefore, the acreage necessary to support the projected increase in population
would be less.
Industrial Development
The City of Otsego has a limited amount of industrial development (16 acres total). The
majority of industrial areas are located east of Highway 101 in the southern portion of the
City. As described in the Physical/Social Profile, undeveloped industrially zoned lots also
exist within the "Otsego Industrial Park" in the southwest corner of the City. Development
of the vacant industrial areas are important for maintaining a sound tax base. Future
industrial growth in Otsego will be dependant on a number of variables including, but not
limited to the following:
• The availability of sewer and water.
• The (ity's position and policy on the promotion of the community for economic
development.
• The City's ability to compete with economic development in other nearby cities.
• The availability of land suited for future commercial and industrial development.
• The City's policy regarding the regulation of home businesses.
OTSEGO COMPREHENSIVE PLAN UPDATE
INVENTORY
Ilim
E C O N O M I C P R O F I L. E.
Locations for future industrial development should take into account the following
elements:
• The site should be reasonably level and offer adequate area for commercial and
industrial principal and accessory activities, such as parking, storage, shipping and
receiving, etc.
• The site should be flood free and have soils that are well drained and capable of
supporting heavy loads.
• The site should take advantage of available major transportation corridors to
provide access and visibility.
• The site should be protected from residential encroachment and other potentially
incompatible uses.
• The industrial areas should allow for further expansion to accommodate future
growth and markets.
Commercial Development
As the population of Otsego continues to grow, commercial development will likely
increase to meet the retail needs of residents. In forecasting future commercial land
absorption, several factors must be considered. These criteria give attention to trade area,
competitive locations, amount of existing commercial development and commercial uses.
The following paragraphs apply these general market criteria to Otsego to provide some
insight as to anticipated commercial land absorption and potential locations for commercial
land use.
Trade Area Potential
The trade area is the geographic area from which a commercial use attracts the majority
of its customers. The trade area concept assumes that all things being equal, people will
travel to the nearest commercial facility. In this light, travel distance is the major parameter
determining the trade area. Other factors influencing the size of a trade area include
location, size and type of competitive facilities, local travel patterns, physical barriers such
as parks, rivers, freeways, etc.
OTSEGO COMPREHENSIVE PLAN UPDATE
INVENTORY
109
E C O N O M I C P R O F I L E
The size of a trade area also depends on the type of goods or services being offered.
Convenience goods include day-to-day items which people do not typically comparison
price shop for such as food, prescription medication and gasoline. Shoppers goods
include items such as clothing and furniture for which people are willing to travel farther
to obtain a better deal. A convenience goods trade area is typically characterized as being
a one to two mile radius with an urban development setting. In a rural or suburban setting
where development and population is less dense, the convenience good trade area is
typically expanded to a three to five mile radius. Due to the nature of shoppers goods
sales, it must rely on larger trade area, typically this trade area is ten miles or greater
depending on the aforementioned trade area limiting factors.
Otsego's potential trade area is influenced by both established competitive commercial
locations and physical barriers.
Competitive Locations
In addition to Otsego's local commercial area, Otsego is also served by retail locations in
a number of surrounding communities. The trade area map on the following page
illustrates the locations of nearby established retail locations that compete for customers
within Otsego.
Elk River, Buffalo, Monticello, Maple Grove and Anoka have been identified as shopper
goods locations that draw from Otsego. Additionally, the Twin Cities regional shopping
centers also attract customers from Wright, Sherburne and Anoka Counties. These
communities offer a full variety of both convenience and shopper good facilities. The
larger selection of businesses, goods and service, as well as easy accessibility, expand
the commercial drawing power of these commercial locations.
Smaller convenience goods retail facilities exist within the Cities of Rogers, Big Lake,
Albertville, St. Michael and Dayton. These commercial locations are more limited in scale
and variety of retail facilities than the shopper goods locations. The convenience goods
locations compete in smaller trade areas for the day-to-day household and automotive
items. The trade area of the aforementioned communities encompass Otsego from various
directions.
OTSEGO
COMPREHENSIVE PLAN UPDATE
110
INVENTORY
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PhysicaarrierS
The Mississippi River, Crow River and Interstate 94 are physical barriers that influence the
commercial market potential of Otsego. The barriers restrict access into Otsego and result
in other competitive commercial locations to have a business interception advantage on
Otsego commercial locations. The concept of business interception is based on the
premise that consumers will not travel through a business district to obtain the same
product farther on. Consumers will follow traditional commuter routes and patronize a
business location that is in route and easily accessible rather than travel to an
inconvenient location.
The Mississippi River and Crow River serve to "channel" the traffic entering Otsego.
County Road 42 and State Highway 101 both run through Elk River before entering Otsego
on the north. Traveling east on County Road 36 leads into Dayton and subsequently, into
Champlin and Anoka. Dayton provides some marginal convenience goods competition,
however, Anoka offers a full range of retail goods and services. Rogers surrounds the k
94/Highway 101 interchange. To date, Roger's commercial development has been limited
to highway -oriented convenience goods. However, the Rogers interchange area offers
high visibility and accessibility for commuter traffic that will be attractive to future
commercial development when area market can support increase. Albertville surrounds
the k94/County Road 37 interchange. Like Rogers, Albertville hopes to take advantage
of the freeway access to promote future commercial growth.
In addition to the aforementioned communities, shopping facilities in Maple Grove,
Plymouth, Brooklyn Park and Brooklyn Center also offer convenient regional shopping
opportunities for commuters who live in Otsego and surrounding communities but work in
the Twin Cities,
Highway Commercial/Service
With the recent upgrade of Highway 101, through traffic to and from recreational areas in
northern Minnesota is anticipated to substantially increase. This gives Otsego an
expanding opportunity to capture an increasing amount of retail sales and service income.
A major factor influencing the amount of land required to meet the market need will be the
quality and standards imposed upon such developments. This potential and the resulting
development needs to be addressed as part of the Otsego Comprehensive Plan. These
considerations, however, need to be balanced with community benefits related to the City's
tax base and overall community quality.
OTSEGO
COMPREHENSIVE PLAN UPDATE
I`�
INVENTORY
EGONOMIG F�ROFI LE
Commercial and Industrial Land Demand and Absorptions
In projecting future commercial and industrial growth, the three previously mentioned
development scenarios are examined.
Commercial and Industrial - No Growth
Under the no growth scenario, the City shall encourage infill development of land that has
already been platted for commercial and industrial development. This again encourages
the preservation of agricultural lands and reduces the potential for pollution by eliminating
additional on -site septic systems. However, by limiting development, the City also reduces
the potential for an increased tax base which would result in further expansion of
commercial and industrial land.
Commercial and Industrial -Traditional Growth
Under the traditional growth strategy, growth has been permitted on a phased basis,
providing for a logical extension of urban growth and related community services.
Between the years 1986 and 1995, the City issued a total of eight building permits for new
commercial and industrial development. Of these permits issued, seven were issued for
new commercial development and one for an industrial use (Long Haul Trucking).
Based upon the building activity over the past 10 years, land absorption rates (the
conversion of rural/vacant land to an urban use) were developed for commercial and
industrial uses and a determination was made on how these uses would impact the
vacant/rural areas of the City.
OTS EGO
LAND DEMAND
(in acres)
Based Upon
Commercial/
Public
Streets
Park
Total
"Slow"
Industrial
Growth
(1)
Scenario
1995-2000
10
1
2
1
14
2000-2010
L� 20
1.5
3
1.5
26
(1) Based on one unit per 2.5 acres
COMPREHENSIVE PLAN UPDATE
114
INVENTORY
LAND NECESSARY (in acres) FOR COMMERCIAL AND INDUSTRIAL
DEVELOPMENT
1995-2000
14
2000-2010
26
1995-2010
40
5 year "overage"
54
Sources: City of Otsego Building Permit Data, U.S.
Northwest Associated Consultants, Inc.
Census, 1990,
Based upon the above projections, Otsego can anticipate between 40-54 acres of
commercial development through 2010. However, projecting future commercial and
industrial land demand for Otsego is difficult from the standpoint that the City is a bedroom
community with a limited amount of industrial and commercial development. Additionally,
the following factors will have a major influence future commercial and industrial
development:
• Availability of sewer and water.
• State Highway 101 has been improved to a 4-lane highway.
• Proximity to Interstate 94.
• Increased population in Otsego and surrounding cities.
Commercial and Industrial -Rapid Growth
Based upon the above mentioned factors, the predictability of future commercial and
industrial development is difficult. Therefore, in an effort to provide an alternative
commercial and industrial land demand projection, a number of surrounding cities were
surveyed to determine their industrial and commercial land demand projections through
the year 2010. Although not a scientifically based projection, a correlation of amount of
industrial and commercial land use in surrounding communities with Otsego may provide
an approximate estimation of what the City can anticipate in the future.
OTSEGO COMPREHENSIVE PLAN UPDATE
INVENTORY
115
INDUSTRIAL LAND DEMAND COMPARISON
CITY
1995-2000
(in acres)
2000-2010
(in acres)
Monticello
30
50
Delano
34
40
Albertville
28
51
Michael
10nkfort
Township
L
30
-
SOURCE: Northwest Associated Consultants Survey of Cities
On average, the above cities expect to develop 26.4 acres of industrial land between
1995-2000 and 47 acres from 2000-2010 for a total of 73 acres from 1995 to 2010. With
the possible extension of sewer and water, and the available land for development along
Highway 101 Otsego may experience similar growth of industrial uses within the next 15
years.
COMMERCIAL LAND DEMAND COMPARISON
CITY
1995-2000
(in acres)
2000-2010
(in acres)
Monticello
35
60
Delano
21
25
Albertville
35
69
Frankfort Township
19
-
St. Michael
16
St. Augusta
15
30
SOURCE: Northwest Associated Consultants Survey of Cities
On average, the above cities expect to develop 23.5 acres of commercial land between
1995-2000 and 46 acres from 2000-2010 for a total of 69 acres from 1995 to 2010. With
the extension of sewer and water, and the available land for development along Highway
101 Otsego may experience similar growth of commercial land within the next 15 years.
OTSEGO COMPREHENSIVE PLAN UPDATE
INVENTORY
F I S C A L A N A L Y S I S
SUMMARY
■ Otsego's total tax rate is comparable with a range assessed upon adjacent
communities. However, Otsego's local rate is among the highest surveyed. The
high local tax rate may be attributed to the high capital costs of a growing
community and reliance on property tax revenue.
■ Agricultural and homesteaded residential land uses represent the largest
percentage of the total market value of land in Otsego. This is reflective of the
current level of development and unavailability of sanitary sewer service in the
community.
■ Otsego obtains the majority of its revenue from property tax receipts. This results
in a high local tax rate that is necessary to generate sufficient revenues to cover the
increasing capital costs and service demands of the City.
■ The City's primary expenditure is currently for administration. As growth and
development continues, expenditure increases for public safety, and parks and
recreation can be anticipated to increase to meet demand.
■ Otsego has a per capita ratio of $152 based upon current population and debt
levels. This is a significantly low amount that suggests the City is in a favorable
position to finance future growth and development.
■ Commercial and industrial development generates a net surplus of property tax
revenue per acre (versus service expenditures). This is attributed to higher
property values and a higher tax capacity ratio.
■ Residential land use samples in Otsego demonstrate a net deficit of revenue from
property taxes per acre (versus service expenditures). This may be attributed to
lower construction values and a lower tax capacity ratio.
■ The preservation of existing agricultural land is positive despite a slight net deficit
of revenue from property taxes due to the low service demands of this use.
OTS EGO
COMPREHENSIVE PLAN UPDATE
117
INVENTORY
F I s G A L A N A L Y S 9 s
PROPERTY TAX RATE COMPARISON
The table below compares the property tax rates of Otsego with those %a several
surrounding communities. Otsego's total tax rate is toward the center of a range of tax
rates. However, the City's local tax rate is the second highest of those surveyed. This
high tax rate may be explained in part to the high capital costs of a growing community and
the City's dependence upon property tax revenue.
PAYABLE 1996 TAX RATE COMPARISON
County Local School Special Total Tax
Albertville 29.270 40.108 54.067 N/A 1230445
29.447 58.557 128.112
Dayton (Hennepin) 37.270 29.844 64.387 3.25 134.751
67.155 1370 519
54.530 1240894
Elk River 23.574 24.033 54.530 1.360 1030497
Hanover (Wright) 29.479 19.088 64.940 N/A 113.527
58.672 1076259
Hanover (Hennepin) 37.270 19.088 64.940 1.856 1230154
Monticello 29.499 18.509 60.110 2.463 1104581
Otsego 29.497 34.637 54.530 2.463 1210129
60.110 2.463 126,709
58.672 2.463 1250271
Rogers (Hennepin) 37.270 23.086 54.530 3.232 1186118
St. Michael 29.499 28.248 58.672 N/A 1160419
SOURCE: Wright County Assessor, Hennepin County Property Tax Department
OTSEGO
COMPREHENSIVE PLAN UPDATE
118
INVENTORY
The City is proposing a payable 1997 local tax of 32.207, a reduction of over two
percentage points. Overall, total tax rates for Otsego are lower, due to a reduction in the
County tax rate, as well as the City's local rate. School District 885 is also proposing to
lower its tax rate, further reducing the total tax rate for property within that School District.
TAX BASE COMPOSITION
The following table illustrates the relationship of land uses in Otsego in terms of market
value with those of other nearby cities. This table is highly reflective of the levels of
development in Otsego. The highest percentage of Otsego's total market value is within
homestead residential land uses, with the lowest percentage represented by independent
commercial or industrial development. It should be noted that home extended businesses
and occupations are not included within the industrial/commercial category below, as they
are not classified as commercial or industrial properties for tax purposes. Otsego also has
a low percentage of market value represented by non -homesteaded residential uses,
which are typically high or medium density rental units. Overall, this information reflects
minimal commercial and industrial development and the unavailability of sewer service
within the community.
TAX BASE COMPOSITION
Residential
Homestead
Residential
Non-
Homestead
Agriculture
Industrial/
Commercial
Other
Otsego
77.00
2.51
6.44
1.83
2.22
Albertville
70.95
13.60
2.89
%89
2.18
Dayton
77.57
2.63
10.55
6.83
2.41
Hanover
77.27
5.76
9.95
4.97
2A5
Monticello
23.07
5.85
.45
11.01
59.60
Elk River
59.30
9.56
7.05
17.15
6098
Rogers
42.80
3.84
6.07
44.70
2039
St. Michael*
77.81
9.02
1.43
8.20
1.55
SOURCE: League of Minnesota Cities
* Prior to consolidation/annexation resolutions regarding Frankfort Township
OTS EGO
COMPREHENSIVE PLAN UPDATE
INVENTORY
�I SCAI_ ANALYS I S
REVENUE/EXPENDITURE ANALYSIS
The tables on the following pages illustrate the City of Otsego's revenues and
expenditures for the year ended 31 December 1995.
Otsego obtains the majority of its revenue from property tax receipts. Conversely1 Otsego
has a relatively low amount of inter -governmental aid. This reliance on property tax
revenue results in a high property tax rate assessed against property in Otsego. The high
tax rate is necessary to generate sufficient revenues to cover the City's increasing capital
costs and service demands.
OTS EGO
COMPREHENSIVE PLAN UPDATE
I
INVENTORY
1995 REVENUES
Total
Percent
Property Tax
$355,472
5309
Intergovernmental Aid:
$176,963
26.8
LGA
$631070
HACA
97,442
Recycling Grant
61075
Police Aid
7,972
Other
21354
Licenses/Permits:
$55,470
8.4
Business Licenses
$5,162
Dog
185
Building Permits
40,271
Septic Permits
31375
Wetland Review
750
Franchise Fee
51727
Charges for Service:
$21,161
12
General
$12,119
CUP/Variance
21848
Subdivision
11625
Zoning Ordinance
11150
Access/Septic
21580
Maps/Copies/Miscellaneous
839
Fees:
$25,008
18
Recreation Fees
$343
Old/Hall/House Rent
8,975
City Hall Rent
151690
OTS EGO
COMPREHENSIVE PLAN UPDATE
121
INVENTORY
F I S C A L A N L Y S I S
Other Revenue:
$13,018
2.0
Clean Up Day
$31531
Refunds and Reimbursements
91220
Other Revenue
267
Interest Earnings:
$12,390
1.9
TOTAL
$659,752
100.0
SOURCE: City of Otsego
The City's primary expenditure is for administration, which accounts for approximately 48
percent of Otsego's total expenditures. The second highest expenditure is for streets and
street maintenance. The expenditure levels in these categories may be anticipated given
the level of development in Otsego to date. As growth and development continues within
the City, service demands for items such as public safety and parks and recreation can be
expected to increase.
OTS EGO
COMPREHENSIVE PLAN UPDATE
122
INVENTORY
� I S C A L A N A L Y S I S
1995 EXPENDITURES
General
Road/Bridge
Park Dev.
Total
General
Government
$4999151.34
461%
Mayor and Council
$36,452900
Administration
186,011.87
Finance
57,304539
Assessing
191148081
Legal
681016640
Planning
Commission
31244085
Planner
51,872,37
EDA
71678514
City Hall/Peavey
74,427047
Public Safety
$118,810.66
11.1%
Police
931075804
Building Inspector
251735062
Public Works
$92,337.65
8.6%
Engineering
501759094
Street Lighting
101342029
Recycling
31,235142
Community
Services
$29,551.82
18%
District 728 Rec,
211281023
Park Maintenance
81278,59
Other Capital
Outlay
$3,25155
.3%
OTSEGO
COMPREHENSIVE PLAN UPDATE
123
INVENTORY
F I S C A L A N A L Y S I S
Streets and Roads
$2360107.20
22.1 %
Personal Services
$80,876199
Supplies
49,206088
Other Services/
Charges
261502660
Contractual Services
54,944020
Capital Outlay
24,576553
Park Reserve
$90,379.00
8.4%
Engineering
$17,441500
Capital Outlay
721201000
Gas and Oil
0
Supplies
0
Miscellaneous
645.00
Printing/Pub.
92.00
TOTAL
$1,0691595.20
SOURCE: City of Otsego
OTSEGO
COMPREHENSIVE PLAN UPDATE
124
� NV ENTORY
The table below
December 1995.
FI SCAL ANJALYS IS
is a description of Otsego's current bonded indebtedness as of 31
CITY OF OTSEGO
BONDEDINDEBTEDNESS
31 DECEMBER 1995
Bond
Year of
Maturity
Outstanding
Balance
General Obligation Improvement bonds of 1987 and
1991
2003
$370,000
General Obligation Water Revenue Bonds of 1994
2004
$194,000
Capital Lease for City Hall
$384,000
TOTAL
$9481000
SOURCE: City of Otsego
The accepted benchmark for healthy municipal bonded debt is $2,500 per capita. Beyond
this figure, the sale of additional bonds is difficult as creditors will consider the City a
possible financial risk. The interest rate for the sale of additional lands will be significantly
higher than they would be for a City considered financially stable.
Based upon Otsego's current population and debt levels, the City has approximately $152
of debt per capita. This is a significantly low amount which suggests that the City is in a
good position to finance future growth and development.
OTSEGO COMPREHENSIVE PLAN UPDATE
INVENTORY
125
F I S C A L A N A L Y S I S
SERVICE DEMAND/REVENUE ANALYSIS
To determine what types of development are beneficial Cl"d what types are a financial
drain to the City, a study and comparison of tax revenues versus City public service
expenditures for various land uses in Otsego was conducted. This study uses a model
that calculates revenues and expenditures on the basis of one acre of development and
provides a financial cost/benefit comparison for various land uses.
It is important to note that this study is intended to be a planning tool that illustrates an
acre to acre cost analysis comparison of land uses and not an overall City budget analysis.
This study is intended to support the assumptions made regarding various land use types
and the extent to which the tax revenue generated balances the service expenditure
demands for the various land use types. Decisions related to land use planning should
not be made solely on the basis of this analysis, but with all of the influencing factors
considered.
One Acre Analysis
The first step in this analysis is to establish an equitable standard for the land use
comparison. For the purpose of this model, all land uses are compared on the basis of
one acre of development. To be specifically noted is that no medium and high density
residential uses currently exist in the City (reflective of lack of sanitary sewer service).
Thus, no tax generation calculations for such uses have been conducted.
To illustrate the land absorption and intensity of each land use, the study calculates the
average number of lots per acre, units per acre, and persons per acre as an initial starting
point. This information is found in the following table. A step-by-step calculation was
applied to each land use as presented below:
1. Determine average lot size and lots per acre based on a random sample of
neighborhoods.
2. Determine lineal feet of lot frontage per acre based on random sample of
neighborhoods and zoning standards.
3. Multiply the number of lots per acre by the number of units per lot to determine the
maximum number of units per acre.
4. Multiply the number of units per acre by the number of occupants per unit to
determine the maximum number of persons per acre. The number of persons per
unit is first determined using U.S. Census data and Metropolitan Council statistics.
OTSEGO
COMPREHENSIVE PLAN UPDATE
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INVENTORY
F I S CAL A N A L Y S I S
Study Area
To facilitate a comparison of tax revenue generation, a range of fully developed property
types, ages and values were selected. The study properties are identified in Table 1
below and on the map which follows.
OTSEGO
TAX GENERATION SAMPLES
MANUFACTURED HOME PARK USES
No. of
No. of
Total
Total
Lots
Units
Acres
Frontage
Riverbend Mobile Home
Park, Lots 1-30
Northern Block
30
30
4.6
21100
Sample Total
30
30
1 4.6 2,100
SINGLE FAMILY RESIDENTIAL USES
No. of No. of Total Total
Lots Units Acres Frontage
Island View Estates
Blocks 24 26 26 26.6 61730
Great River Acres 1 st
Block 2 19 19 68.0 51050
Walesch Estates 1 st
Blocks 1 and 2 23 23 3206 31920
Country Ridge
Blocks 7-10 31 31 33.6 61070
Sample Total 79 79 160.8 21 J70
COMPREHENSIVE PLAN UPDATE
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INVENTORY
F I S CAL A N A L Y S I S
COMMERCIAL USES
No. of
No. of
Total
Total
Lots
Units
Acres
Frontage
Mississippi Shores 6th
Block 1
3
3
3.8
11150
Mississippi Shores 7th
Block 1
1
2
1.8
350
MRD Commercial Park
Lot 1, Block 2
1
1
3.8
300
PID # 262101
1
3
1.8
450
Sample Total
6
9
11.2
2,250
INDUSTRIAL USES
No. of
Lots
No. of
Units
Total
Acres
Total
Frontage
Otsego Industrial Park
Lot 2, Block 2
1
1
6.3
260
PID # 263408
1
1
2.0
290
Sample Total
2
2
8.3
550
AGRICULTURAL USES
No. of
No. of
Total
Total
Lots
Units
Acres
Frontage
W 1/2 of NW Quarter,
Section 23, Range 24
1
1
99.0
11750
W 1/2 of NE Quarter,
Section 34, Range 23
1
1
80.0
11320
NE Quarter of
Section 29,��Range 23
1
1
160.0
21680
Sample T,dtal
3
3
339
5,750
SOURCES: Northwest Associated Consultants, Inc.
Metropolitan Council
State Demographer
OTSEGO COMPREHENSIVE PLAN l.1PDATE
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F I S C A L A N A L Y S I S
CHARACTERISTICS PER ACRE
Manufactured
Single Family
Commercial
Industrial
Agricultural
Home Parks
Residential
Lots Per Acre
605
049
055
024
0009
Units Per
615
A9
680
.24
0009
Acre
Persons
21 A
1659
905
1005
A
Per Acre
Lineal Feet
Lot Frontage
45605
13504
20009
6613
1700
Per Acre
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F I S C A L A N A L Y S I S
COMPREHENSIVE PLAN UPDATE
130
INVENTORY
F I S C A L A N A L Y S I S
SERVICE EXPENDITURES PER ACRE
The table on the following page illustrates total City service expenditures for each of the
land use types. To be specifically noted is that such expenditures are exclusive to the City
of Otsego and do not include School District or County service costs. Expenditures were
calculated by taking the 1995 service costs which are paid through the City's general
revenue fund and dividing it by a standard service unit. The standard service unit is
determined on the basis of the service's delivery characteristics as detailed below.
Government Administration
Total general governmental administration, excluding individual licensing and permits, 6s
typically handled on a City-wide basis with services (taxation, finance, planning, insurance,
etc.) directed toward property owners. Therefore, the standard service unit cost is
calculated on a per lot basis.
Public Safety and Building Inspection
Law and code enforcement and emergency services are generally distributed by means
of patrolling and service calls. Based on these general characteristics, a per unit service
cost was established.
Streets
Street services can be directly correlated with the street system that serves individual land
uses. To distribute the demand for this service in an equitable fashion, the service unit is
based upon the amount of lineal street frontage per lot. For those properties with more
than one frontage, this service unit was calculated to include only those frontages to which
access is permitted. Because the manufactured home park streets are privately
maintained, no service expenditures have been applied.
Community Services
The service use of City park and recreation facilities and programs typically serves
individual people, including residents, non-resident employees and visitors. As such, the
service expenditure unit for these services was calculated on a per capita basis.
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INVENTORY
F I S C A L A N L Y S I S
ANNUAL SERVICE EXPENDITURES PER ACRE
Manufactured
Single
Commercial
Industrial
Agricultural
Home Parks
Family
Residential
Government Admin
($243/lot)
$1,580
$119
$134
$58
$2
Police ($45/unit)
$293
$22
$36
$11
$.41
Building Inspection
($12.50/unit)
$81
$6
$10
$3
$A 1
Streets
($68/lineal foot)
NA
$92
$137
$45
$12
Recycling ($15/lot)
$98
$7
$8
$4
$.14
Community Svcs.
($3.75/person)
$79
$6
$36
$39
$.04
Other -Capital
Outlay ($1.60/unit)
$10
$.78
$1.28
$.38
$.0144
TOTAL
$2,141
$330
$362
$160
$15
The information above illustrates that the land uses with the greatest density of lots, units
and persons per acre demand the greatest service expenditures, as may be expected. As
such, the manufactured home sample generates the greatest demand by a significant
margin due mainly to the high concentration of units and lots of that type of development.
Conversely, agricultural land use with its sparse lots and units per acre creates a low
service demand per acre.
STATE PROPERTY TAX CLASSIFICATIONS BY LAND tJSE
The table below provides State of Minnesota tax classification rates for the various land
use samples. Such rates represent percentages used to calculate taxable value to which
property tax rates are applied for specific land use types including agricultural, single
family, multiple family, and commercial/industrial. As can be expected, tax rates for non-
agricultural homesteads (1-2 percent of market value) are significantly less than those
applied to multiple family (2.3 - 3.4 percent), and commercial/industrial (3.0 - 4.6 percent).
While not particularly applicable to Otsego at this time, it is interesting to note that the
rates for multiple family uses are purposely escalated in recognition of greater service
OTSEGO COMPREHENSIVE PLAN UPDATE
INVENTORY
Mia
F I S C A L A N A L Y S E 5
demands. This system essentially operates as a tax subsidy for homesteaded residential
properties, by lowering the portion of the property's value to which the property tax rate is
applied. As such, a residential property would generate less property tax revenue than a
similarly valued commercial or industrial property. The purpose of this system is to make
home ownership a more financially feasible housing option.
Ctrs Fc ;c�
COMPREHENSIVE PLAN UPDATE
135
I NVENTORY
OTSEGO
TAX CAPACITY CALCULATION
Class Use Rate
1a Non -Agricultural Homestead:
1st $72,000 of market value 1.00%
Over $72,000 of market value 2.00%
2a Agricultural Homestead:
House Garage and One Acre:
1st $72,000 of market value 1.00%
Over $72,000 of market value 2.00%
Remainder of Property:
1 st $115,000 of market value 045%
Over $115,000 of market value 1.00%
1 st 320 acres 1.00%
Over 320 acres 1.50%
3a Commercial/Industrial:
1st $100,000 - limited to one parcel/
entity/county 3.00%
Over $100,000 or additional parcel 4.60%
4b(1) I Residential Non -Homestead: I
3 units or less 2.30%
4c � Manufactured Home Parks � 2.00%
4b(2) I Unclassified Manufactured Homes I 2.30%
SOURCE: Wright County Assessors Office
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INVENTORY
F I S C A L A N A L Y S I S
PROPERTY TAX REVENUE
The table below represents 1995 tax revenues for the various land use samples on a per
acre basis. This table illustrates the discrepancies between revenue generation of various
land uses.
1995 PROPERTY TAX REVENUE PER ACRE
Use
Tax Capacity
Units/
Tax Cap.
Taxes Per
Taxes Per
Parcels
Per Unit
Unit
Acre
Manufactured
Home Park
$24,592
199
$123658
$42.80
$278
Single Family
Residential
$11572,756
1,642
$957483
$328089
$161
Commercial/
$1,914 - C
Industrial
$117,420
17
$61907006
1 $2,392039
$574 - 1
Agricultural
$245,903
404
$608567
$210082
$2
SOURCE: Wright County Assessor
As illustrated above, commercial and industrial land uses generate the greatest property
tax revenues per acre. Those revenues may be attributed in part to higher property values
per acre due to higher construction and land costs, as well as higher tax capacity
calculation rates.
Agricultural and single family uses generate the lowest revenues per acre. As with
commercial and industrial development, these revenues may be related to property value
and tax capacity calculation rates. Both of these factors tend to be lower for agriculture
and single family uses.
OTSEGO
COMPREHENSIVE PLAN UPDATE
137
INVENTORY
SURPLUS/DEFICIT PER ACRE
Below is a comparison of the land use service expenditures versus the tax revenues to
demonstrate the economic efficiency of the various land uses.
TOTAL ANNUAL PROPERTY TAX REVENUE/EXPENDITURES PER ACRE
Land Use
City Property
Tax Revenues
Total City
Expenditures =
Surplus/
Deficit
Manufactured
Home Park
$278
$2,141
- $1,863
Single Family
Residential
$161
$320
- $159
Commercial
$1,914
$362
+ $1,552
Industrial
$574
$160
+ $414
Agricultural
$2
$15
- $13
SOURCE: Northwest Associated Consultants, Inc.
Commercial and industrial properties product a net surplus of property tax revenues. The
above table illustrates that single family and manufactured housing in Otsego generate a
net deficit of property tax revenue on a per acre basis. This deficit can be attributed,
especially in the case of manufactured housing, to the high service expenditures due to
the concentration of dwellings related to lower property values and also lower tax capacity
rates.
Commercial and industrial properties, however, generate net surpluses of property tax
revenues. This revenue is explained by the relationship of their service expenditures to
the development's typically higher property values and higher tax capacity rates. It should
be noted that these samples are independent commercial and industrial properties located
in commercial and industrial zoning districts. Home extended businesses are not
classified as commecial or industrial properties for taxing purposes. Thus, the higher
non-residential tax capacity ratio is not utilized. Also, home extended businesses typically
lack the added value of an independent commercial or industrial structure in that these
uses occur primarily in residential or agricultural type acccessory structures. Therefore,
home extended businesses would not be anticipated to generate revenue similar to the
commercial samples of this analysis. Rather, these uses would be expected to produce
revenues from property taxes more in character with that of a single family residential use.
OTSEGO COMPREHENSIVE PLAN UPDATE
INVENTORY
Im
Agricultural land uses generate a slight deficit of property tax revenue. However, this
relatively low amount is viewed as almost insignificant and is not perceived to be a burden
to the City. To the contrary, the maintenance of agricultural land uses is viewed as
positive because while these uses do not generate surplus revenue for the City, they also
Jo not demand a significant amount of service expenditures.
It should be stressed that not all types of residential land uses are deficit producers.
Similar analyses completed for other communities have demonstrated that higher value
single family units, as well as high density multiple family structures, consistently generate
net surplus property tax revenues. A higher value home may contribute a greater amount
of property tax revenue while not demanding greater service expenditures of a lower
valued dwelling per acre. Multiple family structures have been found to generate net
surplus of property tax revenues per acre due to higher construction costs and a higher
tax capacity ratio, despite higher service demands due to the increased density.
Land uses that create a net deficit of property tax revenue are unable to cover the cost of
service demands on the basis of property tax revenue alone. In order to fund these
deficits, the City must use alternative services of revenue such as inter -governmental aid
and charges for services or raise property tax rates and service fees to account for the
service demands. Increases in the rates or service charges would negatively impact the
continued future growth in Otsego. The development of land uses that generate a net
surplus of revenue from property taxes can assist the City to fund service expenditures for
those land uses that do not "pay their own way".
Alternative revenue sources are valuable in order to reduce the property tax burden.
However, Otsego's ability to generate these revenues is dependent upon a number of
factors beyond the control of the City, such as the availability of state and federal funds
and the ongoing rate of development in the community. These factors may be influenced,
to a greater extent, by issues of the national economy than by actions of local
governments.
To date, there has been minimal development of uses shown to generate net revenue
surplus of property tax revenue in Otsego. This fact, coupled with Otsego's current
reliance upon property tax revenue for funding cited previously, has resulted in Otsego's
high local tax rate. The development of additional land uses that generate a net surplus
of revenue to balance deficit generating land uses is essential. The development of
revenue generating land uses will improve the City's financial position and ensure that
future growth and development occurs in a fiscally responsible manner.
OTS EGO
COMPREHENSIVE PLAN UPDATE
139
I NVENTORY
OTSEGO
F I S C A L A N A L Y S T S
COMPREHENSIVE PLAN UPDATE
140
INVENTORY
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Characteristic
System Mileage
T R A N S P O R T A T I O N
ROADWAY FUNCTIONAL CLASSIFICATION SYSTEM
CHARACTERISTICS
Principal Arterial
Interstate Freeway Other Principal Arterial
Suggested federal upper limits for interstate aril
other principal arterials combined: urban 10%
Percent of Travel Suggested federal limitations for interstae
(VMT) freeways and other principal arterials combined:
41M5%
Intersection
Parking
Large Trucks
Management Tools
Vehicles Carried
Posted Speed Limit
Right-oi-way
Transit
Accommodations
Grade separated
None
No restriction
Ramp metering,
preferential treatment
for transit, interchange
spacing
Desirable; grade
separated. Minimum:
high -capacity controlled
at grade intersections
None
No restriction
Ramp metering,
preferential treatment
for transit, traffic signal
progression, staging of
reconstruction,
intersection spacing.
Functional Class
M
inor Arterial
Suggested federal
limitations for principal
arterials and minor
arterials combined:
urban 15=25%
Suggested federal
limitations for principal
arterials and minor
arterials combined:
65 80%
Traiic signals and
cross street stops
Collector Local Street
Suggested federal
limitations: urban
5 10%, rural 20-35%
Suggested limitations:
5 10%
4-way stops and
some traffic signals;
local street stops
Suggested federal
limitations: urban
65 80%, rural 63-75%
Suggested federal•
Ilmitatlons:l0-30%
As required
Restricted as necessary Restricted as necessary Unrestricted
Restricted as necessary Restricted as necessary Permitted as necessary
Traffic signal
progression, land
access management,
preferential treatment
for transit
Urban:25,000-150,000 15,000.100,000 5,000-30,000
Rura1:5,000-50,000 2,500-25,000 1,000-10,000
Urban:45-55
Rural: Legal limit
300'
Priority access and
movement for transit
vehicles In peak
periods where needed
Source: Metropolitan Council
40-50
Legal limit
100'-300'
Priority access and
movement tar transit
vehicles to peak periods
where possible and
needed
30-45
Legal limit
150'
Preferential treatment
where needed
Number of lanes,
traffic signal timing,
land access
management
1,000-15,000
250-2,5000
60'-100'
Cross sections and
geometries designed for
use by regular route
buses
Intersection control,
cut-de•sacs, tliverters
Less than 1,000
Less than 1,000
Maximum 30
Maximum 30
50'-80'
Normally used as bus
routes only in
non-residential areas
OTSEGO COMPREHENSIVE PLAN UPDATE
INVENTORY
1111 oil
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