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PC Staff Report Concept Plan Review 6-21-05 CITY OF CHANHASSEN 7700 Market Boulevard POBox147 Chanhassen, MN 55317 Administration Phone: 952.227.1100 Fax 952.227.1110 Building Inspections Phone 952.227.1180 Fax: 952.227.1190 Engineering Phone 952.227.1160 Fax 952.227.1170 Finance Phone: 952.227.1140 Fax 952.227.1110 Park & Recreation Phone: 952.227.1120 Fax: 952.227.1110 Recreation Center 2310 Coulter Boulevard Phone: 952.227.1400 Fax: 952.227.1404 Planning & Natural Resources Phone 952.227.1130 Fax: 952.227.1110 Public Works 1591 Park Road Phone 952.227.1300 Fax 952.227.1310 Senior Center Phone 952.227.1125 Fax: 952.227.1110 Web Site WI'iW.ci .chanhassen. m n. us w MEMORANDUM TO: Planning Commission FROM: Lori Haak, Water Resources Coordinator 6~. DATE: June 21, 2005 W RE: GE/Osmonics Concept Plan Review PURPOSE The purpose of this concept plan review is to consider the requests of a potential buyer of the GE/Osmonics property with respect to variances from the requirements of the Bluff Creek Overlay District (Article XXXI of the Chanhassen City Code). BLUFF CREEK OVERLAY DISTRICT Bluff Creek is entirely within the City of Chanhassen. It provides a unique blend of habitat, vegetation and recreational opportunities through the center of the city. In December 1996, the City of Chanhassen adopted the Bluff Creek Natural Resources Management Plan (BCNRMP). The plan was the culmination of several years of study and planning focused on protecting the natural and recreational resources provided by the Bluff Creek corridor. The BCNRMP recommended the establishment of a primary zone (the creek, riparian wetlands, associated steep slopes, native vegetation) and a secondary zone (other undeveloped portions of the watershed) as a tool to help protect the creek's natural resources. The primary and secondary zones were mapped at that time using aerial photography to provide staff and the public with a general idea of where the zones would lie. In December 1998, the Bluff Creek Overlay District portion of City Code (Article XXXI) was adopted (Attachment 1). The incorporation of the BCNRMP into the code allowed the City to move ahead with the plan's recommendations for open space preservation and density transfer. In addition, it solidified the criteria for primary and secondary zone delineation, requirements for setbacks, and open space requirements. Generally, properties within the Bluff Creek Overlay District are subject to the following requirements: The City 01 Chanhassen . A growing community with clean lakes, quality schools, a charming downtown, thriving businesses, winding trails, and beautiful parks A great place to live, work, and play. GE/Osmonics Concept Plan Review June 21, 2005 Page 2 of 5 1. A conditional use permit (CUP) is required prior to all subdivision, site plans, land alteration and building within the Bluff Creek Overlay District. 2. Bluffs must be preserved as set forth in Article XXVIII of City Code. 3. Density transfer can be used to cluster development in areas where the location of the primary zone makes portions of the site unsuitable for development. 4. Natural habitat areas within the primary zone must be preserved as open space. 5. The primary zone must be 100 percent open space. 6. All structures must be set back at least 40 feet from the primary zone. 7. The first 20 feet of the setback from the primary zone cannot be disturbed. City Code provides for the community development director to make a determination of the primary and secondary zone boundaries. The applicant may submit additional information to assist the City in making the determination. The community development director's boundary determinations can be appealed to the City Council. BACKGROUND The Minnesota Department of Transportation (MnDOT) and its contractor, the Zumbro River Constructors (ZRC), are working on the final design for the Trunk Highway 212 corridor and wetland mitigation areas. In order to accommodate wetland mitigation within Chanhassen, MnDOT has been working with the City and the owners of key parcels along Bluff Creek to provide off-site mitigation (that is, replacement of wetlands impacted by the TH 212 project in areas that are outside of the TH 212 corridor). Two off-site wetland mitigation sites (OF-l and OF-5) have been preliminarily designed by MnDOT (Attachment 3). The major property owners affected by the proposed mitigation sites are GE/Osmonics, General Mills, Independent School District 112 and the City of Chanhassen. In order to secure the rights to mitigate wetland on these properties, the City is working on MnDOT's behalf to gain wetland easements from each property owner. Each of the property owners has different concerns about the amount of property that would be encumbered by the easement, as well as the effects of the mitigation project and the easement on future development or use of the property. To that end, the City is meeting with the property owners individually in an attempt to resolve some of these concerns in a timely fashion. MnDOT has indicated they would like to have an idea as to whether each property owner is seriously considering participation in the mitigation projects by July 1, 2005; however, construction of the projects will likely not commence until Fall 2005 at the earliest. OFFSITE MITIGATION AREA OF-l The offsite mitigation area known as OF-l is located behind the General Mills facility in the southwest corner of Coulter Boulevard and Audubon Road, north of the railroad GE/Osmonics Concept Plan Review June 21, 2005 Page 3 of 5 tracks. The majority of the area proposed for wetland mitigation is owned by General Mills and GE/Osmonics. A small portion of the western edge of the site is owned by the City of Chanhassen. In this location map, the horizontal dashed area represents the mapped Bluff Creek Overlay District primary zone; the other shaded area represents the mapped secondary zone. Approximate primary zone boundaries were drawn by City staff in December 2004 using aerial photography during a site visit (solid line on Attachment 4). Following further discussion and at the request of General Mills, City and MnDOT staff flagged and GPSd the primary zone boundary on the General Mills and GE/Osmonics properties in March 2005 (line with dots on Attachment 4). MnDOT's preliminary proposal (Attachment 5) does not include a large amount of excavation to create new wetland. Through vegetation management and minor changes in hydrologic patterns, MnDOT proposes to create areas that are suitable for the establishment of six different natural communities within the easements on the OF-l site. These include oak woodlands and mesic hardwood forests on the slopes, leading down to riparian wet meadow, mixed emergent marsh, floodplain forest and wet meadow communities in the low portions of the sites. Low flows from Bluff Creek would be diverted through a pipe to augment the hydrology of the wetland areas and grade stabilization structures would be installed in the creek to keep the creek from carving a deeper ravine for itself. Final design of OF-l is the responsibility of ZRC and will be completed once easements are secured. Both MnDOT and the City will have input on ZRC's final design; however, it is not likely that ZRC will substantially deviate from MnDOT's preliminary design. Staff Perspective Ci ty staff is supportive of MnDOT's proposal for the use of these areas for wetland creation, vegetation restoration and creek meandering for several reasons: 1. The wetlands that will be impacted by the construction of TH 212 are very beneficial for water resources, aesthetics and wildlife. Staff would like to see these GE/Osmonics Concept Plan Review June 21, 2005 Page 4 of 5 benefits preserved within the City. The mitigation plans, as proposed, will keep many of the benefits within Chanhassen. 2. The proposed project is consistent with the intent of the Bluff Creek Watershed Natural Resources Management Plan (December 1996) and Article XXXI of Chanhassen City Code regarding Bluff Creek Overlay District. 3. The proposed project does not include financial contributions from the City of Chanhassen for easement acquisition or construction purposes. If the proposed projects are not completed by MnDOT, the City will likely spend local dollars to complete the projects in the future. The 1996 plan estimated costs of $131,000 for these two projects: $48,000 for an emergent marsh restoration on Site 2C (General Mills and GE/Osmonics) and $83,000 for a creek and wetland restoration on Site 2D (Independent School District 112 and City of Chanhassen). The actual costs for these projects would likely be greater now, as the recent Bluff Creek remeandering project north of OF-5 was awarded at $114,000. This did not include costs for native vegetation restoration. 4. The proposed mitigation would enhance the habitat, hydrologic and diversity functions within the Bluff Creek Overlay District. GE/OSMONICS SITE PROPOSAL The owners of the GE/Osmonics site are primarily concerned with the ability of future users to develop more of the western portion of the property. The western and southwestern portions of the property are within the Bluff Creek Overlay District primary zone. Land within the primary zone cannot be disturbed and all structures (including buildings and parking) must maintain a 40-foot setback from the primary zone. In addition, the first 20 feet of that setback cannot be graded. The concept plan under consideration (Attachment 7) has been submitted by a potential buyer of the site. The buyer wishes to determine whether or not the Planning Commission would consider granting variances for alterations within and encroachment into the primary zone (Section 20-1563) and decreased setbacks from the primary zone (Section 20-1564). The precise extent of the variances has not yet been determined. The current proposal involves enlarging the developable area to accommodate additional industrial development. This would be accomplished by allowing encroachment into the primary zone along the northern property line and along the western edge of the property and, for setback purposes, employing the northern property line and the edge of wetland buffer as the primary zone boundary. The applicant has also proposed constructing a storm water pond in a small wetland basin near the center of the property, with mitigation occurring adjacent to existing wetland in the southwest portion of the property. Staff Perspective In consideration of the benefits of the entire OF-l mitigation project to the habitat, hydrologic characteristics and vegetative diversity of the Bluff Creek corridor and in GE/Osmonics Concept Plan Review June 21, 2005 Page 5 of 5 exchange for the easement required for wetland mitigation purposes, there may be benefits to permitting encroachment in this instance. City Approvals Required Under the current proposal, the developer would need to secure the following from the City prior to development of the site: 1. Conditional Use Permit (CUP) for development within the Bluff Creek Overlay District and potentially for development within floodplain; 2. Subdivision; 3. Rezoning of the western portion of the site from Agricultural Estate District (A2) to Industrial Office Park (lOP); 4. Site Plan; 5. Wetland Alteration Permit for construction of a storm water pond within a wetland; and 6. Variances, if necessary. RECOMMENDATION Staff requests that the Planning Commission provide staff and the developer direction on proceeding with development of the parcel, specifically if there may be support for encroachment into the primary zone and/or variances from setback requirements. ATTACHMENTS 1. Article XXXI of Chanhassen City Code, Bluff Creek Overlay District. 2. Ordinance 394 Amending Chapter 20, Article XXXI of Chanhassen City Code, Bluff Creek Overlay District 3. Map of off-site wetland mitigation sites OF-l and OF-5 4. GPS boundary of Bluff Creek Overlay District Primary Zone 5. Draft Vegetation Establishment Plan for OF-I, dated 12/8/04 6. Letter from L. Homeland and G. du Monceaux, dated June 10,2005 7. Concept land development plan for Audubon Corporate Park, undated cc: Liv Homeland Greg du Monceaux G:\ENG\Lori\Planning\GE-Osmonics Concept Plan 062105.doc ARTICLE XXXI. BLUFF CREEK OVERLAY DISTRICT Page 1 of 4 ARTICLE XXXI. BLUFF CREEK OVERLAY DISTRICT Sec. 20-1551. Purpose. The Bluff Creek Watershed Area and the development within it have a major influence on environmental quality in the city and the region. Development within the corridor must be designed with utmost sensitivity to the environment and the development pattern must be of a quantity and quality other than what might occur in the absence of specific standards. The purpose of the district is to: (a) Protect the Bluff Creek Corridor, wetlands, bluffs, and significant stands of mature trees through the use of careful site design, protective covenants, sensitive alignment and design of roadways and utilities, incorporation of natural features, landscaping, techniques outlined in the city's surface water management plan, and the practices delineated in the city's Best Management Practices Handbook. (b) Encourage a development pattern that allows people and nature to mix spanning multiple ecosystems. Development in the corridor should be ecologically designed and built around natural features such as trees, wetlands, and bluffs. Significant natural features should impact development rather than development impacting significant natural features. The natural qualities of the corridor should be preserved to ensure sufficient habitat area for wildlife. (c) Promote innovative development techniques such as cluster development and open space subdivisions to measurably reduce the amount of impervious cover compared to traditional development practices resulting in significant portions of a site being retained as permanent, protected open space. (d) Foster the creation of a greenway connecting Lake Minnewashta Regional Park and the Minnesota River Valley. The greenway will serve as an uninterrupted pedestrian trail, bikeway system, and wildlife corridor affording opportunities for recreation, education, physical fitness and nonmotorized transportation. (e) Encourage cost effective site development. Open space design practices can reduce infrastructure engineering and construction costs because of lot configurations, shortened streets, and reduced utility runs. Long term cost savings can also be realized by the City of Chanhassen associated with infrastructure maintenance costs. (f) Implement the policies and recommendations found in the Bluff Creek Watershed Natural Resources Management Plan. The terms, definitions and appendices found in the management plan are incorporated herein. (Ord. No. 286, S 8, 12-14-98) Sec. 20-1552. Intent. The city intends that all development within the district including commercial, industrial and residential uses should blend into the natural environment while protecting Bluff Creek and sensitive land areas abutting and in the vicinity of the watercourse and its tributaries. The criteria by which new development in the district shall be judged are as follows: (a) Consistency with all provisions of the Comprehensive Plan which includes the Bluff Creek Watershed Natural Resources Management Plan, as amended from time to time; the surface water management plan; all provisions of the zoning ordinance and subdivision ordinance not specifically overridden by the provisions of this district; and all other applicable land use regulations. (b) Preservation of the natural conditions found in the primary zone and to the greatest extent possible, preserving significant resources and minimizing impacts in the secondary zone through cluster development and other practices which minimize the removal of vegetation, minimize site grading, and application of practices found in the city's Best Management Practices Handbook. (c) Creation of a suitable balance between the amount and arrangement of open space, http://libraryI2.municode.comlgateway .dl1/MN/minnesota/2613/2703/2734 ?f=templates$fn=document - fr... 6/1412005 ARTICLE XXXI. BLUFF CREEK OVERLA Y DISTRICT Page 2 of 4 landscaping, view protection, bluff protection, and vegetation protection and the design and function of manmade features. (d) Creation of an interconnected open space network that preserves migratory patterns for wildlife. (e) Creation of an interconnected open space network that provides recreational and educational opportunities for people. (Ord. No. 286, S 8,12-14-98) Sec. 20-1553. District application. The BCO district shall be applied or superimposed (overlaid) upon all zoning districts as contained herein as existing or amended by the text and map of this ordinance. The regulations and requirements imposed by the BCO District shall be in addition to those established for districts which jointly apply. Under the joint application of the districts, the more restrictive requirements shall apply. (Ord. No. 286, S 8,12-14-98) Sec. 20-1554. Conditional use permits. (a) A conditional use permit shall be issued by the city for all subdivisions, site plans, and prior the erection or alteration of any building or land within the BCO. (b) All lots of record in existence and parcels of land located within the Bluff Creek Overlay District on which a principal structure has been constructed prior to December 14, 1998, are exempt from requiring a conditional use permit. Further subdivision of the property will require a conditional use permit and shall comply with the Bluff Creek Overlay District. (Ord. No. 286, S 8,12-14-98; Ord. No. 364, S 1,1-12-04) Sec. 20-1555. Boundary delineation. (a) Generally. Primary and secondary zones shall be subject to the requirements established herein, as well as restrictions and requirements established by other applicable city ordinances and regulations. The Bluff Creek Overlay District regulations shall not be construed to allow anything otherwise prohibited in the zoning district where the overlay district applies. (b) Boundaries; maps. The primary and secondary zones include land that is generally defined in this ordinance and in the Bluff Creek Watershed Natural Resources Management Plan. Boundaries as established by officially adopted city maps shall be prima facie evidence of the location and type of watershed zone. The official maps shall be developed and maintained by the planning department. The applicant shall provide appropriate technical information, including but not limited to a topographical survey, flora and fauna survey and soil data deemed necessary for the city to determine the exact watershed zone boundary. The community development director shall make a determination to maintain the officially designated watershed zone boundary or if the boundaries need to be corrected on city plans and maps based upon the data that is supplied. Data for watershed zone delineation shall be generated and provided by a qualified professional specializing in watershed management, environmental science or other related profession. The applicant may appeal the community development director's determination of the watershed zone boundary and type to the city council. (Ord. No. 286, S 8,12-14-98; Ord. No. 377, S 155,5-24-04) Sec. 20-1556. Impervious cover and slopes. To the greatest extent possible, all development shall minimize the amount of impervious surface by clustering development, using common access drives and utility corridors and minimizing building footprint size. Roads, walkways, bike trails, and parking areas must be designed parallel to natural contours with consideration to maintaining consolidated areas of natural topography and vegetation. Management of surface run-off caused by impervious cover shall be designed using practices delineated in the city's Best Management Practices Handbook. Within the secondary zone of the BeO District, areas with average slopes exceeding 25 percent shall be preserved in their natural state and maintained as permanent open space. Areas with average slopes less http://libraryI2.municode.comlgateway .dll/MN/minnesota/2613/2703/2734 ?f=templates$fn=document-fr ... 6/14/2005 ARTICLE XXXI. BLUFF CREEK OVERLAY DISTRICT Page 3 of 4 than 25 percent but greater than ten percent shall not exceed an impervious surface coverage of 25 percent. Impervious coverage for areas where average slopes are less than ten percent shall be governed by the underlying zoning district. (Ord. No. 286,98, 12-14-98) Sec. 20-1557. Bluffs. Bluffs shall be preserved as provided for under article XXVIII. (Ord. No. 286,98, 12-14-98) Sec. 20-1558. Site views. Through environmentally sensitive design such as "terrain adaptive architecture" (see Figure 1), landscaping and site planning, site views both to and from the BCO district shall be preserved and enhanced to the greatest extent possible so as to maintain views that reflect and protect the natural beauty of the BCO District. Special attention should be given to views that are highly accessible to the public such as scenic overlooks, ridges and trails. Clustering of development away from natural overlooks is encouraged. GRAPHIC LINK: Figure 1. "Published in APA PAS Report #466" (Ord. No. 286,98,12-14-98; Ord. No. 377, 9 156, 5-24-04) Sec. 20-1559. Density clustering. Density clustering shall be allowed as a tool to facilitate cluster development within the Bluff Creek Overlay District. Density clustering may be used in areas where portions of the site are unsuitable for development because of the location of the primary zone. Density clustering shall not be allowed for areas that are otherwise considered unbuildable due to wetlands, lakes and other areas not suitable for building purposes. In areas where density clustering is applicable, density may be transferred to unconstrained parts of the site within land included in the secondary zone, subject to the restrictions of this ordinance, and within land lying outside of identified zone areas. Additionally, the following conditions may qualify for density clustering: (a) Land slopes in the secondary zone that exceed 25 percent on average. (b) Land in the secondary zone containing stands of native trees. (c) Land with suitable natural habitat to endangered or threatened species or a fragile ecosystem. GRAPHIC LINK: Traditional Development Pattern GRAPHIC LINK: Cluster Development GRAPHIC LINK: Industrial Cluster Development (Ord. No. 286,98,12-14-98; Ord. No. 377, 9 157, 5-24-04) Sec. 20-1560. Standards and guidelines for single-family attached or cluster-home PUDs. Single-family attached, cluster, zero lot line, and similar dwelling types shall only be allowed on sites designed for low, medium or high density residential uses by the City of Chanhassen Comprehensive Plan. (Ord. No. 286,98,12-14-98) Sec. 20-1561. Natural habitat preservation. (a) Natural habitat areas within the primary zone shall be preserved as permanent open space. Any development that occurs shall be directly related to the development of a continuous greenway along the creek from the Minnesota River to Lake Minnewashta as outlined in the Bluff Creek Watershed http://IibraryI2.municode.com/ gateway .dI1lMN/minnesota/2613/2703/2734 ?f=templates$fn=document - fr... 6/14/2005 ARTICLE XXXI. BLUFF CREEK OVERLA Y DISTRICT Page 4 of 4 Natural Resources Management Plan. (b) Where possible, any disturbances of natural habitat areas within the secondary zone shall be avoided. Any alterations to the natural habitat within the secondary zone shall adhere to the practices delineated in the city's Best Management Practices Handbook. (Ord. No. 286, S 8,12-14-98; Ord. No. 377, S 158, 5-24-04) Sec. 20-1562. Natural habitat restoration plan. If natural habitat areas located within the secondary zone will be disturbed during any stage of development, the applicant shall submit a detailed plan identifying the resources that will be disturbed and a corresponding restoration and/or mitigation plan. Such restoration might include wetland mitigation and replanting of habitat significant to endangered and threatened species. (Ord. No. 286, S 8,12-14-98) Sec. 20-1563. Open space requirements. Open space shall comprise 100 percent of the area located within the primary zone. The city will establish the boundary for the primary zone using data provided by the applicant. (Ord. No. 286, S 8,12-14-98) Sec. 20-1564. Structure setbacks. All structures shall be set back a minimum of 40 feet from the primary zone. No disturbances of the site shall occur with the first 20 feet of such setback. (Ord. No. 286, S 8,12-14-98; Ord. No. 364, S 2,1-12-04; Ord. No. 377, S 159,5-24-04) http://libraryI2.municode.coml gateway .dlllMN/minnesota/2613/2703/2734 ?f=templates$fn=document - fr... 6/14/2005 CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA ORDINANCE NO. 394 AN ORDINANCE AMENDING CHAPTER 20, ARTICLE XXXI CHANHASSEN CITY CODE, BLUFF CREEK OVERLAY DISTRICT THE CITY COUNCIL OF THE CITY OF CHANHASSEN, MINNESOTA ORDAINS: Section 1. Section 20-1564 of the City Code, City of Chanhassen, Minnesota, is hereby amended to read as follows: ( a) All structures shall be set back a minimum of 40 feet from the primary zone, except as specified below. No disturbances of the site shall occur within the first 20 feet of such setback from the primary zone boundary. (b) On parcels ofland located within the Bluff Creek Overlay District on which a principal structure has been constructed prior to December 14, 1998: (1) The minimum setback from the primary zone shall be the existing principal structure setback, if less than 40 feet. (2) If the existing principal building or structure setback is less than 40 feet and greater than or equal to 20 feet, then the first 50 percent of the established primary zone setback shall remain undisturbed. (3) If the existing principal building or structure setback is less than 20 feet there shall be no grading or alterations beyond the existing setback. Section 2. This ordinance shall be effective immediately upon its passage and publication. PASSED AND ADOPTED this 25th day of April, 2005, by the City Council of the City of Chanhassen, Minnesota Todd Gerhardt, City Manager Thomas A. 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BO~I1dary: This1ine ~:rther ~efjnl~s;a;.P9rtjci~,()f!he .si~e;~(J1)e'prote~ted.an,.dalsu: carde,~':'!WP t~~;t)ty.~; . ~ . '. foot (20.0') buff~(zones. .' ',. . ~ :' <'-". ',:. :':.: :r.""~"<:::.'."', ,-d:, .,>,.' "",~ J' ..,....'''_ :):'~::..: :' '.' "("_ ).." ":";,.'i"', '",.:'., . :~'..:,,'. ,.'. ~'.' . .' '.'. PURPOSE OF THIS APPLICATION.,.. ,> q' .'., '<'" ..' . . .,,, .,' . ,'" ..... .:' :" The"p'~rpQ:~e oitlii~;~~~li~ati6~,i~: tri/~~d !~ .~~Y~tb~~"F~4~fi~es. sQnie :0f:t~e.',si~e t~$):riiijd~~ :;in .~i~~k. .: ::;' ::;:~i::: .' .......:?<',~~~~~~~~b~il~~rl'l~i~i!~l~~!;I~~:i~t!fJ~.K':j';~~ , ':~, ',., twelye:.(121 ,acre,&, of' the:: siJ~~" tn~, J~u,ff:'Cr~e:\<.,Bl')~X)dlliy. rlfue,']Jc 'llie,:s:~trie"line as)~e,<.ri~~thetl}t ^~.: "; ;::':'-: " . 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