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1997 Comprehensive Plan -Adopted January 1997COMPREHENSIVE PLAN Planning Tactics � Il �' a li tli) i'�' � �CI�' ���`. I1 IDe� elo��r� er t � �,im�� �t�r 1: JANUARY 1997 INTRODUCTION CREDITS PLANNING PROCESS PROFESSIONAL PERSPECTIVES -1 .. COMMUNITY VIEWS CHECKLIST UITY M COMPREHENSIVE PLAN NAC Planning Tactics lily"�Ilt(Ili" ' 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 1 �". 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. OTSEGO COMPREHENSIVE PLAN UPDATE PLANNING TACTICS 5 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. OTSEGO COMPREHENSIVE PLAN UPDATE PLANNING TACTICS 0 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 �_. 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. OTS EGO COMPREHENSIVE PLAN UPDATE PLANNING TACTICS 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 OTS EGO 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. OTS EGO COMPREHENSIVE PLAN UPDATE PLANNING TACTICS 13 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 OTSEGO 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 15 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 PLANNING TACTICS 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. COMPREHENSIVE PLAN UPDATE PLANNING TACTICS 17 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. yi COMPREHENSIVE PLAN UPDATE PLANNING TACTICS 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 PLANNING TACTICS 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 PLANNING TACTICS 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 • i� Ip J Iv ■tiw i��l 1�� .�li IIi �id � III ri Vey. It Otsego Prairie Park f 4 1Ivy it r�''. R AI „/ i,1 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 PLANNING TACTICS 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. COMPREHENSIVE PLAN UPDATE PLANNING TACTICS 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 COMPREHENSIVE PLAN UPDATE PLANNING TACTICS 27 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. OTS EGO COMPREHENSIVE PLAN UPDATE PLANNING TACTICS 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 PLANNING TACTICS 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. OTSEGO COMPREHENSIVE PLAN UPDATE PLANNING TACTICS 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 PLANNING TACTICS 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 PLANNING TACTICS 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 PLANNING TACTICS 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 PLANNING TACTICS 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. OTSEGO COMPREHENSIVE PLAN UPDATE 0 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 COMPREHENSIVE PLAN UPDATE 5 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. OTSEGO COMPREHENSIVE PI.A.N UPDATE INVENTORY 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 OTSEGO COMPREHENSIVE PLAN UPDATE 7 INVENTORY 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. OTSEGO COMPREHENSIVE PLAN UPDATE INVENTORY 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 OTSEGO COMPREHENSIVE PLAN UPDATE INVENTORY 0 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 OTSEGO COMPREHENSIVE PLAN UPDATE 10 INVENTORY 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 OTSEGO COMPREHENSIVE PLAN UPDATE INVENTORY 11 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 COMPREHENSIVE PLAN UPDATE 12 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 OTSEGO COMPREHENSIVE PLAN UPDATE INVENTORY 13 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 INVENTORY 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 COMPREHENSIVE PLAN UPDATE `)0 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. OTSEGO COMPREHENSIVE PLAN UPDATE INVENTORY 23 N A T U R A L E N V I R ON MEN T OTSEGO COMPREHENSIVE PLAN UPDATE INVENTORY 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. OTSEGO COMPREHENSIVE PLAN UPDATE INVENTORY 27 N ATURAL LNVIRON M E N T OTSEGO COMPREHENSIVE PLAN UPDATE INVENTORY 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, OTSEGO COMPREHENSIVE PLAN UPDATE INVENTORY 01 OTSEGO N A T U R A L E N V IRONMENT COMPREHENSIVE PLAN UPDATE 32 INVENTORY 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. OTSEGO COMPREHENSIVE PLAN UPDATE 35 INVENTORY OTS EGO NATU RAL ENVI RONIvIENT COMPREHENSIVE PLAN UPDATE 36 INVENTORY 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 COMPREHENSIVE PLAN UPDATE 39 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 m 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 0 N N W �Gd 6 _ III a ug III III It I It X III <o i€ Vic• Y� "ggNO S., i I O I' er-. If. 1 0 NIT IN J << d a aaaa dz ddodY ++ �"��+�>, t'C L ..N___, _a_y ___ '•- II -- r� f I I Icc jl _ �i 1 ��144 � _ 4zv. I I y. III r 4 1 y 31II' 1 _ � Jh, 11 ' s. 11 gi 7pc*77 1. I Ot r / ado rj !:Li;ppp� ,. nl���- ¢ :/ +---\ eIII IN s O [[ y ,Li IN it NO 1 II !� \\ tog y - y. \I ( \ 1 f - l f ¢� 0 a D z L w > N z w w a 0 U I _.. �, NINE W'dbw IN Eno w I III It INNS Li It 7 In 1 . \. e , , I f I 1 I t I I 59 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. OTSEGO COMPREHENSIVE PLAN UPDATE NVENTORY 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. OTSEGO COMPREHENSIVE PLAN UPDATE INVENTORY 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. OTSEGO COMPREHENSIVE PLAN UPDATE INVENTORY 74 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. OTSEGO COMPREHENSIVE PLAN UPDATE INVENTORY 77 OTS EGO COMPREHENSIVE PLAN UPDATE INVENTORY 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 f� 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. OTSEGO COMPREHENSIVE PLAN UPDATE INVENTORY Ltm 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 L 0 IL Q 0 a u ro a 10.4 v u .a ✓ a Z � Q W ZZ° W g in n.Z0N 0< w �ZZ� a O w m Noo it IL J Q B� u >, u ro L p o � a 0 4 a ro w � ro � c a ro C N C a� E:� 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 INVENTORY ;! 1 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. OTS EGO COMPREHENSIVE PLAN UPDATE 91 INVENTORY OTSEGO C O ICI M U N I T 1� FAG I L I T I E S COMPREHENSIVE PLAN UPDATE � NVENTORY 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 INVENTORY 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 INVENTORY 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 INVENTORY 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. OTSEGO COMPREHENSIVE PLAN UPDATE 100 INVENTORY 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. OTSEGO COMPREHENSIVE PLAN UPDATE 101 INVENTORY 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. OTS EGO COMPREHENSIVE PLAN UPDATE 102 INVENTORY 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. COMPREHENSIVE PLAN UPDATE 103 INVENTORY 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 OTSEGO COMPREHENSIVE PLAN UPDATE INVENTORY 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 h ? 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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 126 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 127 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 INVENTORY 128 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 OTSEGO COMPREHENSIVE PLAN UPDATE INVENTORY I A' OTSEGO 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. OTS EGO COMPREHENSIVE PLAN UPDATE 133 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 COMPREHENSIVE PLAN UPDATE 136 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 N U O Qx�Q�( � J Q OZILI ZOI+Im N O z (L o D wx F Z W Z /y oQW� o LL Z �z�� Q Dow Ow m _N O z IL W � � ods 11001 mat dd� a Q f" ;4gotaggiagal ad, too 4 WryI old a I trill '' r.a 4too •rot, Lylof"..H l fir• 1 ':• wn`,I ;�� 4 . i ` M• �,. `� L f' ! 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G0 V 'K MXI to lotis NO Ma Iddig it It �g Lot 0 at Not + t.. // ro 1 �4� J tlj. ii N F�� M c,it N� t) �1 (C� add —, 1 Vivo ON to goo or, V.A . 111 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 °- I I t` Q P_ tx ea SaaeY x �gJ►�' F F -�- Z � Q W o o o ir a oaa W W J N a O w �m �oZ Ilk m O jr Z � ro N C O � O � ca ro ro c O1 N C N C a, � H