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MEMORANDUM
TO:
FROM:
DATE:
SUB J:
Todd Gerhardt, City Manager
Kate Aanenson AICP, Community Development Director
June 28, 2004 C}~,.
Discussion Regarding Properties in the Rural Service District
DISCUSSION
Last October the staff proposed changes to the following sections of the code
(changes are shown in a strikethrough/bold format):
"Section 2-31. Special Assessments for Certain Services.
In addition to any other method authorized by law, the city council may, by
~sotmion ordinance, order the performance of any of the services or work
enumerated in Minnesota Statutes section 429.101, subdivision 1. The
performance by the city of any of the foregoing services or work shall constitute
a special benefit for which a special assessment for the collection of the cost
thereof may be levied against the property."
State statute, section 429.101 requires that these assessments be done by
ordinance.
"Sec. 2-32. Urban and Rural Service Districts.
(a)
The city is divided into an urban service district and a rural service district,
constituting separate taxing districts for the purpose of all municipal
property taxes except those levied for the payment of bonds and judgments
and interest thereon. The urban service district includes all properties within
the Carver County limits in the city except those set forth by ordinance as
the rural service district. The rural service district shall include only such
unplatted lands, which need not be contiguous to one another, as in the
judgment of the council at the time of adoption of the ordinance are rural in
character, and are not developed for commercial, industrial or urban
residential purposes, and for these reasons are not benefited to the same
degree as other lands by municipal services financed by general taxation.
The council finds that only property put to the following uses is rural in
character: A parcel on which ninety (90) percent of the tillable land is used
for growing corn, grain, or sfeed crops; a parcel where the principal use is
Rural Service Districts
June 28, 2004
Page 2
raising poultry, cattle, sheep, or swine; a parcel which is enrolled in the
Federal Conservation Reserve Program. "Rural in character" specifically
does not include property served by public sewer or water, tree farms,
nurseries, hobby farms, and property whose principal use is residential. A
dwelling on land that does not qualify for taxation under the state
agricultural property tax law shall be considered urban residential.
(b) The city council finds that as of~,,~ v,~...~,~,~'T ..... t,~ ~,,~ ~ !99<~ June 28, 2004, the
parcels identified on a list dated NeYem~er !3, !995 June 28 2004, entitled
"Rural Service District" on file with the city clerk are in the rural service
district.
(c) Whenever any parcel of land included in the rural service district is platted,
in whole or in part, or whenever application is made for a permit for the
construction of commercial, industrial or urban residential building or
improvement to be situated on such parcel or any part thereof, or whenever
such building or improvement is commenced without a permit, the council
shall make and enter an order by resolution transferring such platted or
improved parcel from the rural service district to the urban service district.
(d)
In the judgment of the council, the ratio that exists between the benefits
resulting from tax supported municipal service to parcels in the rural service
district to parcels in the urban service district iso,~,~vo;v*" w,-,/~n~ seventy-five (75)
percent, plus any municipal property taxes levied for payments of bonds and
judgments, and interest thereon."
The change to 75 percent was approved by resolution on November 27, 2000.
However, it was not codified as part of the city code. Many of the properties
listed in 1995 have been or are being developed and, therefore, are being
removed from the list. Staff is recommending that all the properties within the
2000 Metropolitan Urban Service Area (MUSA) be removed from the list.
Last fall the staff submitted the recommendations to the Rural Service Task
Force, consisting of Steven Berquist, Gayle Degler, Willard Johnson and A1
Klingelhutz, from 1995 for their opinion on these changes. The Rural Service
Task Force recommends that those properties within MUSA that are still
primarily farmed be retained under the rural service designation. They reason
that these properties are undeveloped and therefore are not benefited to the same
degree as other lands by municipal services financed by general taxation as
developed properties are. When these properties are developed, then they
should and will be removed from the rural service district. The list as proposed
by the Task Force members is as follows and is included as part of the
resolution:
Rural Service Districts
June 28, 2004
Page 3
PID Number
Owner
25.0020200
25.0220100
25.0220700
25.0220800
25.0221300
25.0221400
25.0230200
25.0230300
25.0230400
25.0230500
25.0230700
25.0231600
25.0232200
25.0232300
25.0242400
25.0242410
25.0242420
25.0242600
25.0242900
25.0253900
25.0260600
25.0262000
25.0262100
25.0340400
25.0350100
25.0350110
25.0350500
25.0361800
25.0361900
25.1550020
Harold Noterman
Charles W. Mattson *
Charles W. Mattson *
Dean & Lois Degler
Aurora Investment, LLC
Gayle & Lois Degler
State of Minnesota (formerly the Holasek property)
Fox Properties, LP
Dorsey & Dorsey
Jeffrey A. & Terri L. Fox
James A. Curry *
James A. Curry *
William J. & Vicky L. Goers *
Town & Country Homes (formerly Bruce Jeurissen property)
State of Minnesota (formerly Al & M. J. Klingelhutz property) *
James A. Curry *
Al & M. J. Klinglehutz *
Klingelhutz Development Co. *
Lawrence C. & Elizabeth Klein
David R. Teich
Gilbert P. & Margaret C. Laurent
Severin H. Peterson
John Klingelhutz
Fenway LP
Emerald Ventures, LLC
Emerald Ventures, LLC
Harold F. Hesse
Darrill Peterson, et al
Darrill Peterson, et al
Timothy A. & Dawne M. Erhart
The following properties have or are being removed from the previous list dated
November 13, 1995, amended January 19, 1996, amended November 27, 2000:
25.0083310
250083320
25.0090300
25.0091700
25.0092800
25.0101700
25.0136010
Westwood Community Church (formerly Heritage
Development of MN, Inc.)
Gregory J. & Claire R. Erickson
John P. Savaryn Estate (Pulte Homes - Arboretum Village)
John. P. Savaryn Estate (Pulte Homes - Arboretum Village)
Mills Properties, Inc. (Pulte Homes - Arboretum Village)
Theodore F. & Marlene M. Bentz
Andrew A. Freseth & Lynda W. Williamson
Rural Service Districts
June 28, 2004
Page 4
25.0160300
25.0163100
25.0232100
25.0351200
Gateway Partners (Arboretum Business Park)
Minnesota Landscape Arboretum (formerly Gateway Partners)
James D. Wilson
Rain Snow or Shine (formerly Chester Teich property)
Staff recommends that the properties in the list which have an asterisk (*)
behind them, and listed below, also be removed from the list since they are in
the Metropolitan Urban Services Area and are, or can be, served by sewer and
water service. The code states that "Rural in character" specifically does not
include property served by public sewer or water, tree farms, nurseries, hobby
farms, and property whose principal use is residential.
25.0220100
25.0220700
25.0230700
25.0231600
25.0232200
25.0242400
25.0242410
25.0242420
25.0242600
Charles W. Mattson
Charles W. Mattson
James A. Curry
James A. Curry
William J. & Vicky L. Goers
State of Minnesota
James A. Curry
A1 & M. J. Klinglehutz
Klingelhutz Development Co.
RECOMMENDATION
This item requires a public hearing. Before this item would appear before the
Council notices would be sent to affected property owners.