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031698 CC Ws AgP . . . CITY OF SHOREWOOD CITY COUNCIL WORK SESSION MONDAY, MARCH 16, 1998 5755 COUNTRY CLUB ROAD COUNCIL CHAMBERS 7:00 P.M. AGENDA 1 . CONVENE WORK SESSION A. Roll Call B. Review Agenda 2. DISCUSSION OF LAND CONSERVATION ISSUES AND CITY'S INVOLVEMENT 3 . ADJOURN No official action is taken at Work Sessions. CITY OF SHOREWOOD CITY COUNCIL WORK SESSION MEETING MONDA Y, l\'lARCH 16, 1998 COUNCIL CHAl\1BERS 5755 COUNTRY CLUB ROAD 7:00 P.M. . MINUTES 1. CONVENE CITY COUNCIL WORK SESSION Mayor Dahlberg called the meeting to order at 7:07 p.m. A. Roll Call Present: Mayor Dahlberg; Councilmembers O'Neill and Garfunkel; Planning Commissioners Kolstad and Champa; Administrator Hurm; Planning Director Nielsen Absent: Councilmembers Stover and McCarty B . Review Agenda The agenda was approved as presented. 2. DISCUSSION OF LAND CONSERVATION ISSUES AND CITY'S INVOLVEMENT Administrator Hunn distributed handouts relative to protecting the community's natural resources. The group then viewed a video tape relative to "Keeping Open Spaces for Tomorrow." . Dean Riesen, 20030 Excelsior Boulevard, President and General Partner of Carlson Real Estate Company, spoke relative to conservation contribution and easements. Mr. Riesen distributed a handout to the group relative to this issue. Mr. Riesen stated a conservation easement was utilized in the Harbor Woods development in Plymouth. He explained this particular parcel was irregularly shaped. Half of the property was guided for multi family and half for single family residential. All of the surrounding property had been developed years prior. The City ultimately allowed higher density on the single family portion of the property. In addition, a portion of the multi family space was utilized for single family. A donation of a conservation easement was made on the remaining property which was designated multi family. This allowed a substantial tax deduction equal to the full market value minus the value of the property with the conservation easement. Mr. Riesen stated the property has minimal value given the perpetual conservation easement which was placed on it. He felt this experience was positive for the city, the property owner and the surrounding neighborhood. Mr. Riesen reviewed the IRS guidelines relative to conservation contributions and easements. He also reviewed various conservation purposes. Mayor Dahlberg inquired whether stonnwater management would qualify as a conservation purpose. Mr. Riesen felt stonnwater management would qualify as a purpose. . . . . CITY COUNCIL WORK SESSION MINUTES MARCH 16, 1998 . PAGE 2 Commissioner Champa inquired what would happen to the easement in the event the property were sold. Mr. Riesen stated this becomes a part of the deed, is permanent and cannot be revoked. In exc~ange for a tax deduction, the property owner would lose development rights to the property and It would have to be left in its natural state. These rights do not expire at any point in the future. Mayor Dahlberg inquired whether the property owner would still have the ability to mow and maintain the property. Mr. Riesen explained a provision such as this could be included in the easement document. The property could be sold, however, the easement would stay with the property and the new owner would not be able to do anything contrary to the easement. Nielsen inquired whether the City could at some point release the development rights since the City is the beneficiary of the easement. Mr. Riesen explained to qualify for the IRS tax deduction, the City would have to give up the right to reverse this. Mr. Riesen felt one of the most important pieces of the conservation easement to be the educating of property owners and the willingness of the City to assist property owners through the process. Councilmember O'Neill stated this is one tool and he felt a variety of tools should be made available to address an assortment of situations which exist in Shorewood. Mayor Dahlberg felt the two most valuable tools to be conservation easements and land acquisition. Councilmember O'Neill felt there to be other options available as well. Mayor Dahlberg felt the City could help residents understand and apply the tools which are available. Commissioner Champa felt the tools must be marketed to the community to determine whether there is an interest in this type of program. Mayor Dahlberg suggested the programs could be made known to the community and anyone wishing to utilize one of the tools available could receive assistance from the City. Mr. Riesen suggested targeted marketing may be appropriate. Mayor Dahlberg felt a good communication strategy would be for someone such as himself to go through this process publicly. Councilmember O'Neill noted the Park Commission would like to obtain more park land and one way to achieve this would be for the neighborhoods to purchase the property, giving the frrst option to the City in the event they wish to sell the property at some point in the future. Mayor Dahlberg raised the issue of the golf course and stated his belief everyone would like to see the corporation which owns the golf course benefit to the fullest possible market driven extent. He felt there may be tools available in which the City could plan in advance for what might happen with the golf course in the future. Mayor Dahlberg explained as property values in Shorewood increase, there will be a point at which the property will be worth more developed than being utilized as a golf course. He suggested the Planning Commission review the matter. Hunn noted the IRS places limits on the use of deductions so that in any single year, the taxpayer can claim a deduction for an amount only up to 30 percent of the taxpayer's adjusted gross income. Excess deduction amounts can be carried forward over the next five years. He pointed out this could be beneficial to people with a $40,000 or $50,000 deduction. Mayor Dahlberg pointed out for a property owner who is many years away from retirement, they would receive the net present value of the funds at this time, however, they must be disciplined and committed to investment. CITY COUNCIL WORK SESSION MINUTES MARCH 16, 1998 . PAGE 3 Councilmember O'Neill noted there had been discussions in the past relative to holding a referendum to ascertain whether the residents would be in favor of paying an additional tax for the next couple of years which would allow the City to purchase green space. He felt a referendum . should be canied out as quickly as possible. Mayor DabIberg noted his agreement stating his belief the residents of Shorewood are interested in preserving as much green space as possible of what is remaining. Mayor Dahlberg suggested formulating a committee which would address this issue and formulate a plan as quickly as possible. Mr. Riesen felt possible a CPA as well as other professionals should be included on this committee. Mayor Dahlberg felt the Planning Commission could work with staff to develop the makeup of the committee. He explained his management objective in this regard would be to speed up the process as much as possible. Hurm reminded the Comprehensive Plan must also be taken into consideration and a determination made whether this matter fits into that plan. Mayor Dahlberg felt the residents could immediately be educated on this process through articles in the Sun Sailor as well as the monthly newsletter. In addition. he would be willing to publicly work through the process himself as an example to the citizens. Hurm inquired if the City were to reject the idea of an easement being donated to the City. would the property owner have the option of donating .an easement to an entity such as the Park Foundation. Mr. Riesen noted this would be another option. Hurm stated the City may want to establish some criteria in this regard. Mayor Dahlberg did not feel the current Council would reject any conservation easement which would be offered. Nielsen pointed out the City would not incur any costs through the conservation easement process. Commissioner Kolstad suggested looking at ways to change the zoning ordinances to maintain the . characteristics of Shorewood through the use of green space, setbacks and percentage of hardcover among other things. Mayor Dahlberg stated the Planning Commission will need to research this matter and provide recommendations for the consideration of the Council. Mayor Dahlberg felt the issues which need to be addressed by staff and the Planning Commission include fine tuning the ordinance, coordinating the changes with the Comprehensive Plan as well as the committee which is being established and its efforts. Mayor Dahlberg felt setting up a small committee and beginning the planning of an educational process should take place as soon as possible. Mr. Riesen stated he would be happy to volunteer as the chair of the committee which is to be established. Mayor Dahlberg expressed his appreciation to Administrator Hurm for his interest and work on this issue. . ... . . . CITY COUNCIL WORK SESSION MINUTES MARCH 16, 1998 - PAGE 4 3. ADJOURNMENT Garfunkel moved, O'Neill seconded to adjourn the City Council Work Session Meeting at 8:55 p.m. :Motion passed 3/0. RESPECTFULLY SUBMITTED, Cheryl WaIIat, Recording Secretary TimeSaver Off Site Secretarial, Inc. YOR . . . To: Mayor and City Council James C. Hurm, City Administrator From: Date: March 4, 1998 Re: Council Work Session on Greenspace - Monday, March 16 Tasks: There seems to be three major tasks ahead in considering what Shorewood should do regarding land conversation: 1 . Determine a vision and reasonable goals for what it is we want to accomplish in Shorewood (including what type of land should be preserved and in what priority). 2. Learn what tools are available to local governments in general for land protection. 3 . Determine which tools we are willing to utiliZe and resources we are willing to tap (time and funds) in utilizing these tools. Vision & Goals: The City Council needs to establish a vision for what it is we hope to accomplish. According to Metro Greenprint, a publication of the DNR, much of what is left of our natural resources could disappear with more than 600,000 residents expected to settle in the metropolitan area over the next two decades. Such a loss would compromise the region's quality of life, because natural areas provide a wide range of benefits prized by residents. Shorewood's work can be collaborative with other metropolitan area open space and conservation efforts in attempting to assure high quality of our ecological infrastructure. To begin discussion, consider the following statement: "To actively encourage the preservation of Shorewood's rich natural heritage and to set aside open land for the enjoyment of generations to come. " The following is a list of goals / objectives which could be considered for a land protection program: .' .< 1. Using a variety of voluntary, incentive-based protection tools as well as acquisition of land or conservation easements to encourage landowners to protect natural areas and important open spaces. 2. Involving citizens in the management and restoration of natural areas, greenspace, and open space. 3 . Restoring greenspaces, where needed, to improve their ecological health. 4. Linking up with existing neighboring city parks, open spaces and outdoor recreational amenities. 5. Involving the public in the planning, development, active management, and restoration of greenways and natural areas. The ~atural Resources goal and objectives are attached and should be reviewed at the work seSSIOn. The Council should also discuss the purposes for which land should be set aside: wetland, forest, open land for passive activity, or open land for active recreation. Tools: Land conservation / protection tools can be categorized in six major areas. They are listed below from what would be the least City involvement to greatest City involvement. Appendix D is attached to give a little more detail on various tools. 1 . Encourage private land conservation easements. 2. Assist residents' purchase of land for set aside through special assessment procedures. 3 . Use of various local land use controls: . Planned unit development . Clustering to preserve both natural areas and development rights . Preservation overlay zoning. 4. Special programs and designation (see Appendix D): . Transfer of development rights . Purchase of development rights . Registry programs . Special designations. 5. Assist a non-profit land conservation group become established to be responsible for acquisition, control and maintenance of land set-aside, City may need to provide some support and funding. 6. Outright purchase - would require use of current funds or a referendum to allow bonding for this purpose. Natural Resources Goal and Objectives ~ 0/0.1 Natural Resources Goal The City will establish guidelines and adopt regulations to ensure preservation and protection of the nattlral environment. Natural Resources Objectives 1 . Development which occurs is to be compatible with . features of the natural environment and preserve environmental features and natural amenities. 2. The natural and aesthetic quality of Shore wood's lakeshore is to be maintained and where feasible improved. 3 . Creative development design to ensure the protection and enhancement of those portions of the community containing unique physical features (e.g. topography, woodlands, etc.) is to be encouraged. 4. F{)rested areas and Natural wildlife habitats are to be provided protection to ensure against loss. 5 . The environmental balance between natural and man- made physical features is to be maintained through proper land use development policy. 6. Shorewood's trees 8l!d natural vegetation are to be presorted and protected against disease and destruction B:fld replaced when necessary. Shorewood's trees and vegetation are valuable assets and consideration is to be given to their preservation and protection. 7. All environmentally sensitive areas (e.g. wetlands, shorelands and floodplains) are to be protected. 8. PresertaUon of Area lakes' ecological systems wia respect to the lake or the lake areas being the primary naroral r.esource to me area are to be conserved and protected for future generations. .~.:-:->__~ l>~ .:.__ ': 1 ~-i(..:l L~~;....;~'~ 1\.'lr L.i.L i(.i ~T"\.)tt:Crl()I-i :\cidapreJ frl1111 i-\lllTlan, 1997) This appendix provides an overview of land protec- tion approaches a\'ailable to local units of government to consen'e natural areas and open space in their com- munities. Selection of appropriate tools will depend on quality of the habitat, ownership status, wishes of the landowner, and financial considerations. The tools in this matrix include both regulatory and \'oluntary, incentive-based approaches. Each tool pro- \'ides a different level ofland protection, ranging from Tool App'licability for Local Governments temporary to permanent and formal to informal. The best tools for land protection are those that protect an area's biological structure and ecological functions in perpetuity, and this longeHerm goal usually requires a combination of tools. Selection and implementation of a package of land protection tools often require cooperation and part- nerships among local officials, private landowners, tech- nical resource professionals,and nonprofits to succeed. Notes Transfer of Development Rights (TDR) In a TDR program, two zones are established in a given geographic area; a "sending" (preservation) zone and a "receiving" zone. Landowners with property in the sending zone may sell their (unused) development rights on the open market to land developers and brokers, who then use the purchased rights to increase their allowable building density in the receiving zone. · To work effectively, TDR programs require: 1) a high demand for housing or other development in the receiving zone, 2) capability of the administering government unit to set up and oversee the program on an ongoing basis, and 3) residents in receiving zone amenable to higher density. . Appropriate for large-scale effons where keeping land in private ownership is desirable. . Minnesota recently pass~d enabling legislation which allows for TDR programs. For information on TDR programs in Minnesota, contact The Land Stewardship Project (LSP) at (612) 653-0618, Purchase of Development Rights (PDR) A PDR program typically involves the purchase of development rights by a local government unit or nonprofit organization in order to accomplish protection of natural features, open space, or agricultural values. PDR programs are generally applied as parr of a formal program with specific criteria u:;ed to select acquisitions. A PDR program mas be viewed as a systematic use of con:;ervation easements. . PDR programs require: 1) the capability of the administering government unit to set up and oversee the program on an ongoing basis, and 2) a funding mechanism to finance the acquisitions of development rights. . Appropriate for large-scale effofts where keeping land in privatt ownership is de:;irable. . The Land Stewardship Project is spearheading a conservation project in Washington-Chisago counties which employs the use of PDRs, TDRs, conservation easements, and acquisition, Contact LSP at (612) 653-0618. ,..."ppiicabiiity for Local Governments '... b~ 01::5 Registry Programs Registry programs are a way to acknowledge and encourage the voluntary protection of natural features by private citizens, Landowners make a non-binding agreement to protect their land by enrolling in a registry. In turn, they are provided with information and technical assistance regarding appropri- ate conservation practices for their particular site. . Local governments may either start their own registry program (if they have qualified natural resource staff) or may instead educate citizens about the availability of registry programs offered by other governmem agencies or private, non-profit conservation organizations. . The MN Chapter of the Nature Consen'ancy admini:;rcrs a regisrry program. ComactLisa Mueller. Land Protection Specialist. at (612) 331- 0733. . "Friends of the Minnesota Valley" administers a Heritage Registry for landowners in the Lower Minnesota River Valley. Call (612) 858-0706. Special Designation High quality natural areas may qualitY for special designation under a state or federal program such as the National Register of Historic Places or the state Scientific and Natural Areas Program, administered by the DNR. Special designation generally requires public access to land. . Special designation may increase legal protection and potential for financial support for acquisitions and management of selected sites. . With sites appropriate for special designation, an outside agency may be imerested in acquiring the property and managing it for protection of its natural features. This allows the local community to benefit from protection of a site without being obligated for the cost of acquisitions or management. . Appropriate options only for natural areas with features of state/national significance. · If a natural area has historic or cultural significance, call the State Historical Preservation Office, (612) 296-5434. · To find out whether a natural area might qualify for designation as a state Sciemific and Natural Area, call (612) 297-2357. Outright Purchase Also known as "fee simple acquisition," the outright purchase of land gives a local government unit full conrrol over all rights to a property. . Outright purchase by a unit of government requires: 1) a determination that the land serves a public purpose. Natural areas can be said to serve public purposes (e.g., flood comrol. enhancement of air . and water quality) even when public access to a site is not feasible, desirable, or practical; 2) necessary funding to finance the purchase. Acquisition may be financed through general revenue funds, bond referenda, lend-lease programs, special taxation, and government grams, trust funds, and matching programs. Cost of acquisitions may be reduced by use of "bargain sale," in which the seller agrees to sell at below market value (the difference is recognized by the IRS as a charitable comribution for the seller's income tax purposes): and 3) fl!1anci:d and sraffing resources ru ., . ! ~"rU\'h..l~" f(lf SHe n1~ln~t!lcr:1('nr and ::1:\:;, fcc:;\" c< · Washington County used a lease- purchase arrangement to finance an acquisitions of park land in the St. Croix Valley. For information, contact Dave Engsrrom, County Commission, at (612) 430-6215. . The DNR administers a matching grant program to assist local governments with acquisitions of natural and scenic areas. · The Trust for Public Land (TPU is a nonprofit land consen'ation organization that applies its expertise in negotiation, public finance. and law to help local governmems acquire public open space. Contact TPL at (612) 338-8494. ... Tool Applicability for Local Governments Notes Perpetual Conservation Easements Conservation easements achieve a number of goals: These easements are legally binding agreements made between a landowner and a qualitYing organization. in which permanent limits are placed on a property's use and development. I) they protect natural and open space \'alues of public land available for sale; 2) they provide permanent protection of required open space in develop- ments; 3) they promote voluntary conservation by landowners; 4) they provide protection for highly sensitive ateas on public land; 5) they ensure ptivate ownership rights. Easements may be sold or -.lonared by a landowner; a local government lTIay require an easement to protect a natural or open space area; easements can keep land in pri\'ate ownership and on the tax roles. Official Land Use Controls Zoning and subdivision ordinances are the most common tools used by local go\'ernments; many land use controls fail to address the protection of high quality natural ateas on public and pri\'ate land; a preservation overlay :one is a t1exible tool which supplements existing zoning; open space zoning mandates or encourages protection of blocks of open space in subdivisions. St. Cloud is in the process of drafting a ~sensitive natural areas overlay zone ordinance" to protect environmentally important areas; developets that employ open space :oning may receive density bonuses for dedicated open space in a subdivision, which may be managed by a homeowners organization. "