08.b Interim Moratorium Ordinance Prohibiting Development Greater that Permitted by UDC for VN DistrictsECKBERG LAMMERS MEMORANDUM
To: Scandia City Council
From: Eric D. Larson, City Attorney
Date: August 10, 2023
Re: Interim Moratorium Ordinance Prohibiting Development Greater that Permitted by
Unified Development Code (UDC) for Village Neighborhood Zoned Districts.
MORATORIUM – INTERIM ORDINANCE
The City’s Planner identified discrepancies between Scandia’s 2040 Comprehensive Plan and the
City’s Zoning Code regarding density requirements in the Village Neighborhood, Village Historic
Core, and Village Commercial district (these Unified Development Code (UDC) groups are
together referred in the UDC as "Village Districts"). The potential conflict was discovered and
identified by the City Planner in his review of the Laurel Ridge Concept Plan.
Accordingly, at the Tuesday, June 20, 2023 City Council meeting, the City Council passed a
moratorium pursuant to Minnesota Statutes section 462.355 respecting any developments in
Village Districts greater in density than permitted by Scandia’s Unified Development Code
(UDC). The moratorium was passed in order to provide City staff and the City Council time to
evaluate and better understand this potential conflict and make appropriate corrective actions.
Under Minnesota Statutes section 462.355, Subd. 4, in order for the moratorium to apply to
pending housing proposals, such as the Laurel Ridge proposed housing development, the City
Council must hold a public hearing. The public hearing has been duly noticed for Tuesday, August
15, 2023.
The moratorium passed by the City Council on Tuesday, June 20, 2023, was appropriate
because, separate from the proposed Laurel Ridge development, the tension between the
Comprehensive Plan and the UDC merits review. Revision (amendment) of one or both
instruments should occur to bring them into clear conformance as to density requirements and
expectations for a Village Neighborhood zoned district.
Attorney Jacob W. Steen from the Larkin Hoffman law firm sent a letter, dated August 9, 2023, to
the Mayor and City Councilmembers arguing that the City may not as a matter of law extend the
moratorium to Mitch Johnson and Continuum Development Group LLC’s housing project,
referenced above as the “Laurel Ridge Concept Plan”. In this Report, I am not going to engage in
a full legal analysis and rebuttal as if briefing the matter for court. In short, I disagree with attorney
Steen’s conclusion. The City may lawfully impose the moratorium. Section 462.355, Subd. 4,
expressly permits an interim moratorium ordinance for pending housing proposals.
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Noteworthy, the Laurel Ridge property has not been rezoned. One major error in attorney Steen’s
letter is the implicit presumption of rezoning. Nothing in the record can or should presume a
rezoning result. The Laurel Ridge Concept Plan project does not meet the property’s current
zoning, thus the need for a rezoning for the plan to proceed.
Furthermore, rezoning decisions are not affected by the moratorium. It should be underscored that
whatever decision is made here by the City Council, the decision is not a rezoning decision in any
manner. In other words, when and if the Laurel Ridge property is rezoned, then and only then does
a moratorium become a factor as to the development because the moratorium applies to Village
Districts.
RECOMMENDATIONS
Respecting the moratorium, as the Scandia City Attorney, my recommendation is that the City
Council make its determination based on its legislative and policy decision-making judgment and
not based on any legal arguments raised by attorney Steen.
Since the decision should be policy and legislatively based, the Scandia City Attorney makes no
recommendation as to whether the moratorium should be extended to pending housing projects,
such as the proposed Laurel Ridge development proposal.
Thus, if the City Council has any major concerns respecting the density development in the Laurel
Ridge Concept Plan, then the City Council’s means of addressing those concerns is to extend the
moratorium to pending housing proposals. Alternatively, the Council may decide not to adopt the
current draft Interim Moratorium Ordinance; in such case, the moratorium enacted on Tuesday,
June 20, 2023 remains in effect but the Laurel Ridge housing proposal would not be subject to the
moratorium.
Attachment:
Interim Moratorium Ordinance No. 2023-09 Prohibiting Development Greater that Permitted by
Unified Development Code (UDC) for Village Neighborhood Zoned Districts
CITY OF SCANDIA
WASHINGTON COUNTY, MINNESOTA
ORDINANCE NO. 2023-09
AN INTERIM ORDINANCE OF THE CITY OF SCANDIA, WASHINGTON COUNTY,
MINNESOTA, PROHIBITING UNDER MINNESOTA STATUTE 462.355,
SUBDIVISION 4,
IN VILLAGE DISTRICT ZONING DISTRICTS, DEVELOPMENT GREATER IN THE
MAXIMUM DENSITY THAN PERMITTED UNDER SCANDIA’S UNIFIED
DEVELOPMENT CODE
THE CITY COUNCIL OF THE CITY OF SCANDIA, WASHINGTON COUNTY,
MINNESOTA DOES ORDAIN:
Section 1. The purpose of this interim ordinance is to protect the planning process and the
health, safety, and welfare of the City of Scandia for the following reasons:
a. The City’s Planner has identified discrepancies between Scandia’s 2040 Comprehensive
Plan and the City’s Zoning Code regarding density requirements in the Village
Neighborhood, Village Historic Core, and Village Commercial district (these Unified
Development Code (UDC) groups are together referred in the UDC as "Village Districts"),
where the 2040 Comprehensive Plan describes higher densities than permitted by the UDC.
b. The City therefore, needs time to evaluate and make revisions to either the 2040
Comprehensive Plan, the UDC, or both.
Section 2. Therefore, pursuant to Minnesota Statutes, Section 462.355, subdivision 4, City
Staff is directed to conduct a study to gather information and make a recommendation to the
Council to determine if the City of Scandia official controls as defined in Minn. Stat. §462.352,
subd. 15. need to be amended.
Section 3. As a result, pursuant to Minnesota Statutes, Section 462.355, subdivision 4, for and
within all V-N zoned districts, any and all new or proposed uses, developments, or subdivisions
including pending housing proposals within the city for existing Village Districts or proposed
rezoning to a Village District zoning district involving the development of real estate greater than
the maximum density set forth in the City’s Unified Development Code are prohibited for a period
of up to twelve (12) months from the effective date of this ordinance or until the ordinance
regulating such uses become effective or until the Council rescinds this Interim Ordinance,
whichever occurs first.
Section 4. This interim ordinance shall be in full force and effect from and after its passage
and publication according to law.
Passed and adopted by the City Council of the City of Scandia, Washington County, Minnesota,
this 15th day of August, 2023.
__________________________
Christine Maefsky
Mayor
Attest:
(Seal)
_________________________
Kyle Morell
City Administrator