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04. Housing Development Discussion1 | P a g e Date: April 28, 2026 To: Scandia Economic Development Authority From: Greenlee Dahle, Consultant City Planner T.J. Hofer, Consultant City Planner Re: Development Scenario for Housing City staff have prepared a memo to summarize the current barriers to development of housing in Scandia. COMPREHENSIVE PLAN & FUTURE LAND USE Comprehensive Plan Goals Scandia’s 2040 Comprehensive Plan includes goals and policies that provide the basis for development strategies in the community. General goals from the Land Use, Housing, and Water Resources sections include, but are not limited to:  Preserve the rural, agricultural character of Scandia through zoning regulations, ordinances, and site design standards.  Manage land use to prevent the premature demand for extension of urban services and in ways that allow existing service levels to meet service needs.  Ensure a variety of lot sizes to create affordable development opportunities to best meet the needs of residents and businesses in Scandia.  Support a variety of housing types and densities for residential uses in and surrounding the Village Center and other areas where appropriate.  Expand life-cycle housing opportunities for residents at all points of life.  Encourage a range of housing choices that fit with the character of the community.  Ensure financial and environmental accountability for installation, maintenance, remediation, and management of any permitted private wastewater system. Community Designation Scandia has two Community Designations from the Metropolitan Council; Diversified Rural for most of the city and Rural Center applied only to the Village Center area. This designation was requested by the city as part of the 2040 Comprehensive Plan and approved by the Metropolitan Council in 2019. 2 | P a g e Under Thrive MSP 2040, Rural Centers are typically expected to plan for average residential densities of 3-5 units per acre. However, when approving Scandia’s 2040 Comprehensive Plan, the Metropolitan Council explicitly acknowledged Scandia’s limited wastewater capacity and historic development patterns, so a lower density than average for Rural Centers was approved. Future Land Use Density Village Neighborhood and Village Mixed Use areas are guided at 1 unit per 2.5 acres. Sector Representatives have indicated to staff that they would not support an expansion of the current land area designated Rural Center. Scandia’s Rural Center density cap (1 unit per 2.5 acres) is unique within the seven county metro. The majority of Scandia is planned and zoned as General Rural at 4 units per 40 acres, which is the average development density in Diversified Rural areas. Wastewater Scandia is not included in the long-term service area extension of the wastewater system from the Metropolitan Council as of the most recent 2050 plans. This limits the City’s ability to plan for long-term water and sewer connections to all areas of the community. The city has no future plans to own and operate a public water and sewer system. As an alternative, cities can allow community- or HOA-owned, shared septic systems. In previous conversations with Washington County Subsurface Sewage Treatment System (SSTS) staff they would not directly discourage the use of community septic systems but highlight several issues with long-term maintenance responsibility and risks of emergencies like a break or system failure. Incremental systems that serve a portion of units in larger development are more feasible than individual systems in some cases. Individual septic systems have higher individual development costs and are further limited by site constraints on smaller lots. 3 | P a g e UNIFIED DEVELOPMENT CODE The City’s Unified Development Code (UDC) regulates zoning, land use, subdivision, and development. Where higher density allowances exist, the UDC provides standards for development. 153.200 Zoning Districts  Base Zoning Districts control residential density.  Density is calculated on a quarter-quarter section (40 acres) basis.  Most zoning districts allow a maximum of: o 4 units per 40 acres, or o 1 unit per 2.5 acres in Village districts.  Higher density zoning districts (Village districts) must organically expand from the current area and cannot “leapfrog” development.  Lot averaging, open space conservation, and Planned Unit Developments (PUD) do not increase the maximum density, but redistribute units within the same density cap. 153.300 Allowed Uses  Duplex, triplex, fourplex, townhomes, multi-family dwellings, and attached residential units are not broadly permitted by right in rural zoning districts.  Where allowed, these uses require: o Conditional Use Permit (CUP), and/or o Rezoning to a different Zoning District or PUD.  Single-family detached housing is the predominant permitted residential use outside Village districts.  Accessory dwelling units are allowed for all lots within the city. For commercial or industrial uses, additional conditions and standards must be met. 153.400 Character and Building Standards Density & Subdivision The UDC regulates lot size and width by Base Zoning District and generally does not permit more than one principal structure on one parcel of land, unless otherwise authorized. Permitted subdivision types include:  Conventional Subdivision  Lot Averaging  Open Space Conservation Conventional Subdivision (G-R) 4 | P a g e  PUD Lot averaging and open space conservation do not allow additional units, only redistribution. Bonus density is detailed within the UDC, but Sector Representatives from the Metropolitan Council have indicated to staff that the bonus density allowed in the UDC should not be allowed. Staff intend to propose an amendment to the UDC to clarify in the near future. Open Space Conservation requires rezoning to OS-PUD. Wastewater Additionally, each lot must demonstrate the ability to support an individual sewage treatment system, or community system meeting MPCA and Washington County requirements. Community systems require long-term ownership and maintenance entities, financial guarantees, and development agreements. As a result, small lots and attached units are difficult to serve with compliant septic systems. Historically, the City has been reluctant to accept shared or privately managed systems, or to establish a municipal sewer system. Streets and Access Subdivisions are required to build streets to City Engineering Standards and dedicate right-of-way for public use. Private streets are prohibited in new subdivisions. Dead-end streets require additional improvements such as cul-de-sacs or turnarounds. Compact development often relies on private drives or shared access, which are not permitted, increasing infrastructure costs and reducing design flexibility. Landscaping, Screening, and Buffering Major residential subdivisions are required to submit a landscaping plan and a tree inventory. In areas with significant trees or woodlands, the UDC applies preservation and replacement standards that increase development cost when significant trees or woodlands are removed. These standards are intended to protect the community’s natural resources and serve as a screening and buffering measure between adjacent land uses. Lot Averaging w/ Landscaping Buffer Lot Averaging (AG-C) Conventional Subdivision 5 | P a g e 153.500 Administration Under Table 153.500.010-1, higher density residential developments require discretionary review, which may include:  Zoning Amendments  Comprehensive Plan Amendments  Conditional Use Permits (CUP)  Variances  Minor Subdivisions  Major Subdivisions  Major Site Plan Review There is no administrative pathway to approve additional residential density or housing types not permitted by-right. These developments are subject to Planning Commission and City Council action. 153.500.080 prohibits variances for density: No variance may be granted… to allow for an increase in the residential density in the land use designation as guided in the City’s adopted Comprehensive Plan. This is a limitation placed on variances by state statute and cannot be changed by the city. Section 153.500.090 is also clear that CUPs do not authorize additional density or smaller lots. This applies to PUDs as well. DEVELOPMENT SCENARIOS Laurel Ridge The proposed housing development “Laurel Ridge” was ultimately approved by the Scandia City Council in 2024, but the total units were reduced from 13 lots in the concept plan, to eight lots in the final plat. This plan still raised density concerns, largely generated by public opposition once the unit count was understood. These concerns were generally expressed as concerns about traffic and driveway access spacing. Proposed Plan: Final Approved Plan:  13 lots 8 lots  ~2.5-acre parcels ~4.4 acre lots  Single-family detached homes Single-family detached homes 6 | P a g e Proposed Plan Final Approved Plan 7 | P a g e Planning Commission Planning Commission discussions have consistently focused on compatibility with surrounding rural development patterns, particularly where a proposal introduces a more compact or clustered form of housing. In past reviews, including Laurel Ridge, the Planning Commission has raised questions such as:  Whether additional vegetative buffers or landscape screening are to buffer higher density development from larger-lot rural residential uses.  How visual separation (tree preservation, berms, setbacks, open space placement) can be used in higher density development.  Whether buffering (separation between developments) requirements should be codified or remain discretionary and site-specific.  How buffering interacts with other constraints, such as septic placement, stormwater facilities, and reduced buildable area. While buffering and screening can improve compatibility, these standards also:  Reduce net buildable area,  Limit septic system layout,  Limit higher unit counts, and  Increase developer cost per unit. Discussion The following questions are intended to guide EDA discussion and help frame future recommendations to City staff, the Planning Commission, and City Council. 1. What would be considered an acceptable lot size for life-cycle housing in Scandia? 2. Would an average lot size of one acre be acceptable in Scandia? a. More development like Oakhill Cottages? Cottage development builder owns septic system. b. Community organization ownership vs individual living on 1-1.5 acre lots. 3. Are the current residential density limits achieving the City’s long-term goals? 4. If flexibility is desired, what kind of flexibility should be allowed? 5. Is the City willing to reconsider its position on shared or managed private wastewater systems? 6. Should buffering and screening standards be clarified in code for higher density development? If yes, how much is “enough”? Attachments 1. Future Land Use Map 2. Zoning Map 3. Thrive MSP 2040 Land Use Policies Page - 1 Committee Report Business Item No. 2019-257 Community Development Committee Meeting date: September 16, 2019 For the Metropolitan Council meeting of October 9, 2019 Subject: The City of Scandia 2040 Comprehensive Plan, Review File 21979-1 Proposed Action That the Metropolitan Council adopt the attached Advisory Comments and Review Record and take the following actions: Recommendations of the Community Development Committee 1. Authorize the City of Scandia to place its 2040 Comprehensive Plan into effect. 2. Revise the community designation for the Village Center portion of Scandia, as shown in Figure 3, from Diversified Rural to Rural Center. 3. Advise the City to implement the advisory comments in the Review Record for Surface Water Management. Community Development Committee Summary of Committee Discussion/Questions Senior Planner Corrin Wendell presented the staff’s report to the Committee. There were no representatives from the City in attendance. Councilmember Vento asked about the mining uses within the City. Community Development Director, Lisa Barajas responded that mining in Washington County is largely made up of sand and gravel extraction and contributes to the local supply of materials for construction activities. Mining has been a part of the community for decades and continues to be. The Community Development Committee unanimously recommended approval of the proposed action with no questions or discussion at its meeting on September 16, 2019. Page - 2 | METROPOLITAN COUNCIL Business Item No. 2019-257 Community Development Committee Meeting date: September 16, 2019 For the Metropolitan Council meeting of October 9, 2019 Subject: City of Scandia 2040 Comprehensive Plan, Review File 21979-1 District(s), Member(s): District 12, Francisco J. Gonzalez Policy/Legal Reference: Metropolitan Land Planning Act (Minn. Stat. § 473.175), Minn. Stat. § 473.513 Staff Prepared/Presented: Corrin Wendell, Senior Planner (651-602-1832) Angela R. Torres, Local Planning Assistance Manager (651-602-1566) Division/Department: Community Development / Regional Planning Proposed Action That the Metropolitan Council adopt the attached Advisory Comments and Review Record and take the following actions: Recommendations of the Community Development Committee 1. Authorize the City of Scandia to place its 2040 Comprehensive Plan into effect. 2. Revise the community designation for the Village Center portion of Scandia, as shown in Figure 3, from Diversified Rural to Rural Center. 3. Advise the City to implement the advisory comments in the Review Record for Surface Water Management. Page - 3 | METROPOLITAN COUNCIL Advisory Comments The following Advisory Comments are part of the Council action authorizing the City of Scandia to implement its 2040 Comprehensive Plan (Plan). Community Development Committee 1. As stated in the Local Planning Handbook, the City must take the following steps: a. Adopt the Plan in final form after considering the Council’s review recommendations as contained in the body of this report. b. Submit one hard copy and one electronic copy of the Plan to the Council. The electronic copy must be submitted as one unified file. c. Submit to the Council a copy of the City Council resolution evidencing final adoption of the Plan. 2. The Local Planning Handbook also states that local governments must formally adopt their comprehensive plans within nine months after the Council’s final action. If the Council has recommended changes to the Plan, local governments should incorporate those recommended changes into the Plan or respond to the Council before “final adoption” of the comprehensive plan by the governing body of the local governmental unit. (Minn. Stat. § 473.858, subd. 3) 3. Local governments must adopt official controls as identified in their 2040 comprehensive plans and must submit copies of the official controls to the Council within 30 days after the official controls are adopted. (Minn. Stat. § 473.865, subd. 1) 4. Local governmental units cannot adopt any official controls or fiscal devices that conflict with their comprehensive plans or which permit activities in conflict with the Council’s metropolitan system plans (Minn. Stat. §§ 473.864, subd. 2; 473.865, subd. 2). If official controls conflict with comprehensive plans, the official controls must be amended within 9 months following amendments to comprehensive plans (Minn. Stat. § 473.865, subd. 3). Environment Committee 1. The Council-approved Comprehensive Sewer Plan becomes effective only after the Plan receives final approval from the local governmental unit’s governing body. After the Plan receives final approval from the City and the Comprehensive Sewer Plan becomes effective, the City may implement its Plan to alter, expand, or improve its sewage disposal system consistent with the Council-approved Comprehensive Sewer Plan. 2. A copy of the City Council resolution adopting its 2040 comprehensive plan, including its Comprehensive Sewer Plan, must be submitted to the Council. Page - 4 | METROPOLITAN COUNCIL Background The City of Scandia is located in the northern part of Washington County. It is surrounded by the communities of Chisago Lake Township, Franconia Township, Farmington Township, Marine on St. Croix, May Township, Hugo, Forest Lake, and Chisago City. The City submitted its 2040 Comprehensive Plan (Plan) to the Council for review to meet the Metropolitan Land Planning Act requirements (Minn. Stat. §§ 473.851 to 473.871) and the Council’s 2015 System Statement requirements. Review Authority & Rationale Minn. Stat. § 473.175 directs the Metropolitan Council to review a local government’s comprehensive plan and provide a written statement to the local government regarding the Plan’s: • Conformance with metropolitan system plans • Consistency with the adopted plans and policies of the Council • Compatibility with the plans of adjacent governmental units and plans of affected special districts and school districts By resolution, the Council may require a local government to modify its comprehensive plan if the Council determines that “the plan is more likely than not to have a substantial impact on or contain a substantial departure from metropolitan system plans” (Minn. Stat. § 473.175, subd. 1). Each local government unit shall adopt a policy plan for the collection, treatment, and disposal of sewage for which the local government unit is responsible, coordinated with the Metropolitan Council's plan, and may revise the same as often as it deems necessary (Minn. Stat. § 473.513). The attached Review Record details the Council’s assessment of the Plan’s conformance, consistency, and compatibility, and is summarized below. Review Standard Review Area Plan Status Conformance Regional system plan for Parks Conforms Conformance Regional system plan for Transportation, including Aviation Conforms Conformance Water Resources (Wastewater Services and Surface Water Management) Conforms Consistency with Council Policy Thrive MSP 2040 and Land Use Consistent, with proposed changes to Community Designations Consistency with Council Policy Forecasts Consistent Consistency with Council Policy 2040 Housing Policy Plan Consistent Consistency with Council Policy Water Supply Consistent Consistency with Council Policy Community and Subsurface Sewage Treatment Systems (SSTS) Consistent Compatibility Compatible with the plans of adjacent and affected governmental districts Compatible Thrive Lens Analysis The proposed 2040 comprehensive plan is reviewed against the land use policies in Thrive MSP 2040. To achieve the outcomes identified in Thrive, the metropolitan development guide defines the Land Use Policy for the region and includes strategies for local governments and the Council to implement. These policies and strategies are interrelated and, taken together, serve to achieve the outcomes identified in Thrive. Page - 5 | METROPOLITAN COUNCIL Funding None. Known Support / Opposition There is no known local opposition to the 2040 comprehensive plan. Page - 1 REVIEW RECORD City of Scandia 2040 Comprehensive Plan Review File No. 21979-1, Business Item No. 2019-257 The following Review Record documents how the proposed Plan meets the requirements of the Metropolitan Land Planning Act and conforms to regional system plans, is consistent with regional policies, and is compatible with the plans of adjacent and affected jurisdictions. Conformance with Regional Systems The Council reviews plans to determine conformance with metropolitan system plans. The Council has reviewed the City’s Plan and finds that it conforms to the Council’s regional system plans for Regional Parks, Transportation (including Aviation), and Water Resources. Regional Parks and Trails Reviewer: Colin Kelly, Community Development (CD) - Regional Parks (651-602-1361) The Plan conforms to the 2040 Regional Parks Policy Plan (RPPP) for the Regional Parks System element. Washington County is the Park implementing agency for Regional Parks System components in the City of Scandia, for which the Plan accurately describes the Regional Parks System components. Regional Parks, Park Reserves or Special Recreation Features located within the City include Big Marine Park Reserve (Figure 1). The Plan appropriately acknowledges State lands within the community, including William O’Brien State Park; Crystal Spring and Falls Creek scientific and natural areas; and Rutstrum Wildlife Management Area. Regional Transportation, Transit, and Aviation Reviewer: Russ Owen, Metropolitan Transportation Services (MTS) (651-602-1724) The Plan conforms to the 2040 Transportation Policy Plan (TPP). It accurately reflects transportation system components of the TPP and is consistent with Council policies regarding community roles, the needs of non-automobile transportation, access to job concentrations, and the needs of freight. Roadways The Plan conforms to the highway system element of the TPP. There are no metropolitan highways (principal arterials) within the City’s boundaries. The Plan accurately reflects the regional functional classification map of A-minor arterials. TH 97/Scandia Trail, TH 95/St Croix Trail, CSAH 3/Olinda Trail and CSAH 15/Manning Trail are all A-minor Connectors. The Plan also delineates one major collector (CR 91) and 13 minor collectors. The Plan identifies all the required characteristics of the City’s roadways, including existing and future functional class and existing and forecasted traffic volumes for minor arterials and collectors. These future forecasts are only slightly higher than today’s traffic volumes, so the Plans states there is no need to widen any roads or reserve right of way for future expansions. The City uses MnDOT and Washington County guidelines to manage access for its roads, depending on the jurisdiction of each road. The Plan also mentions the City is cooperating with MnDOT in the ongoing study of possible safety improvements to TH 97. Transit The Plan reflects that Scandia is a rural community located in Transit Market Area V. As such, it does not have any existing or planned scheduled transit service, but it does have Transit Link dial-a-ride service. Page - 2 | METROPOLITAN COUNCIL Aviation The Plan conforms to the aviation system element of the TPP. There is not an existing or planned airport within Scandia and currently no structures taller than 500 feet. The Plan does discuss notifying FAA of any structures 200 feet or higher proposed in the future and includes policies that protect regional airspace from such obstructions, although it also notes the unlikelihood of such a structure being proposed in Scandia. Bicycling and Walking The Plan is consistent with the Bicycling and Pedestrian chapter of the TPP. Existing and planned trails are discussed and mapped in the Parks chapter. There are no Regional Bicycle Transportation Network (RBTN) corridors within or near the City. Although the Plan states that the largely rural nature of the community is not conducive to pedestrian travel, it does have a discussion of pedestrian safety issues, especially those related to crossing TH 97, a 2-lane minor arterial. Freight The Plan is consistent with freight policies of the TPP. The Plan maps heavy commercial vehicle traffic counts but indicates that there are no manufacturing or distribution centers in the city, and that freight is not a major issue for the city. It does identify the CN railroad that runs along the eastern edge of the city which carries only a few trains per week. Transportation Analysis Zones (TAZs) The Plan conforms to the TPP regarding TAZ allocations. The City’s TAZ allocations for employment, households, and population appropriately sum to the Council’s citywide forecast totals for all forecast years. Water Resources Wastewater Service Reviewer: Kyle Colvin, Environmental Services (ES) – Engineering Programs (651-602-1151) The Plan conforms to the 2040 Water Resources Policy Plan (WRPP). It represents the City’s guide for future growth and development through the year 2040. The City is provided wastewater services through a combination of private and public communal wastewater treatment systems and individual Subsurface Sewage Treatment Systems or SSTSs. The Plan indicates continued wastewater services will be provided through these types of services through 2040. The Plan states that there are two private communal wastewater treatment systems and three publicly owned facilities within the City. All operate under a state permit. The Plan does not indicate a need for expansion at the private systems to accommodate the growth within areas served by these facilities. However, the Plan does states that all three of the Public systems are operating at near capacity, and that there are high nitrate issues with the Bliss Addition facility. The Plan states that the City is currently considering treatment options to mitigate the high nitrate issues associated with the Bliss Addition facility. The Plan does not propose nor anticipates requesting connection to the Regional Wastewater Disposal system within the 20-year planning period; therefore, the City is not required to submit for approval a formal Comprehensive Sanitary Sewer Plan. The Council does not have plans to provide wastewater services to the community within the 2040 planning period. Surface Water Management Reviewer: Jim Larsen, CD – Local Planning Assistance (651-602-1159) The Plan is consistent with Council policy requirements and in conformance with the Council’s WRPP for local surface water management. The Plan satisfies the requirements for 2040 comprehensive Page - 3 | METROPOLITAN COUNCIL plans. Scandia lies within the oversight boundaries of the Carnelian-Marine-Saint Croix, Comfort Lake – Forest Lake, and Rice Creek Watershed Districts (WDs). Scandia submitted a draft Local Water Management Plan (LWMP) update to the Council in May 2018. Council Water Resources staff reviewed and commented on the draft LWMP to the City and three WDs in a letter dated June 18, 2018. The LWMP was approved by the Carnelian-Marine-Saint Croix WD on March 20, 2019, the Comfort Lake – Forest Lake WD on March 4, 2019, and the Rice Creek WD on March 27, 2019. The Plan incorporates the City’s final draft LWMP in Appendix H. Advisory Comments We request that the City provide to the Council the date the City adopts the final LWMP, and a copy of the final adopted LWMP that will be included in the final Plan document that the City adopts. Consistency with Council Policies The Council reviews plans to evaluate their apparent consistency with the adopted plans of the Council. Council staff have reviewed the City’s Plan and find that it is consistent with the Council’s policies, as detailed below. Forecasts Reviewer: Paul Hanson, CD – Research (651-602-1642) The Plan includes (table on page 12) the Council forecast for the City. For reference, forecasts are shown in Table 1 below. Table 1. City of Scandia Forecasts Census 2010 Estimated 2017 Council Forecasts 2020 2030 2040 Population 3,934 4,049 4,260 4,630 4,950 Households 1,498 1,490 1,700 1,910 2,100 Employment 519 493 620 690 730 All forecasts tables throughout the Plan are consistent and the City has enough land guided to accommodate future household growth. Thrive MSP 2040 and Land Use Reviewer: Corrin Wendell, AICP, CD – Local Planning Assistance (651-602-1832) The Plan is consistent with Thrive MSP 2040 and its land use policies. The Plan acknowledges the Thrive community designation of Diversified Rural (Figure 2) for much of the City. The Plan proposes a community designation change for the Village Center area within the central part of the City to be classified as Rural Center (Figure 3) as described under the Rural Center section below. The Existing Land Use Map, Figure 4, shows that the existing land uses in Scandia are predominantly Undeveloped (41%), Agricultural (25%), and Single Family Detached (10.4%). Approximately 12.8% of the City is Open Water. The City is home to an historic village area, where most of the development of the community is located. Rural Center Thrive calls for Rural Center communities to plan for and stage development for forecasted growth through 2040 and beyond at overall average net densities of at least 3-5 dwelling units per acre. Rural Center communities are to strive for higher-density commercial uses and compatible higher-density residential land uses in the commercial core of the community to ensure efficient uses of existing infrastructure investments. Page - 4 | METROPOLITAN COUNCIL The Plan updates some of the guided land use categories from the 2030 plan (Figure 5). The Plan supports the Village Center, the social and economic heart of the City. The Plan encourages a vibrant Village Center and surrounding residential neighborhoods while utilizing existing infrastructure, and guiding development and redevelopment in an orderly manner. The Plan encourages infill development in vacant or underutilized lots in this area. The Village Center is served by an existing public communal wastewater system and has historic development patterns consistent with the capacity available through that local system. The Plan expands the Village Neighborhoods and Village Mixed Use categories with guiding densities at 1 unit per 2.5 acres continuing the previous guiding land use from the 2030 Comprehensive Plan. The Plan directs growth in the community to the Village Area, but acknowledges the capacity constraints of the local utility system, and so has chosen to limit overall development density. While the Village Center area guided densities are less than the 3 units per acre set for Rural Center communities, the Village Center area proposed for Rural Center designation does have the characteristics of historic Rural Centers throughout the region, with a historic downtown that supports small businesses, public spaces, and civic buildings accompanied by integrated residential uses in a more walkable built environment. Given previous development patterns and the limited capacity for the local community system to accommodate higher density development opportunities, Council staff find that the Plan is consistent with Council land use policies. No regional wastewater service is contemplated for the City in this planning period, and the City is responsible for the maintenance and operations of the public communal wastewater system. Diversified Rural Thrive describes Diversified Rural communities as communities that contain a variety of agricultural and non-agricultural land uses. These areas both protect rural, agricultural lands while offering potential for future development. Development density in Diversified Rural areas average 4 units per 40 acres. In the future, Diversified Rural communities could face land use incompatibilities should future development occur and urbanization expand. Some communities with the Diversified Rural designation are included in the Long Term Service Area for the regional wastewater system, but Scandia is not identified as being served by the regional wastewater system in the WRPP. The Plan is consistent with density policies for the Diversified Rural community designation. Rural Mixed Use District The Plan describes a new Rural Mixed Use district west of Big Marine Lake to permit additional density. The implementation of this land use category is contingent upon infrastructure repairs or upgrades and would require a comprehensive plan amendment. This new land use category is intended to allow for single-family residential development connected to the Big Marine Store rural commercial area. Single family residential is guided at a maximum density of 4 units per 40 acres. Some civic buildings, small commercial, and parks and recreation uses will also be allowed. The City anticipates that the Rural Mixed Use District will have roughly 85 percent residential uses and 15 percent commercial or civic uses. Improvements to the existing community septic system serving this area are necessary to permit higher density in this area. Until that occurs, new development will be limited in this area. The Plan maintains densities at 4 units/40 acres in this area, consistent with the Diversified Rural Community Designation. Agricultural Preserves The Plan also shows the Agricultural Preserves Overlay for the continuation of the Agricultural Preserves Program in the City. This overlay is intended to encourage the continuation of agricultural production through ensuring the availability of the Program to qualifying agricultural landowners. Parcels enrolled in the Agricultural Preserves Program and located within the Agricultural Preserves Overlay are guided at a maximum density or 1 unit per 40 acres, consistent with the statutory program requirements. Page - 5 | METROPOLITAN COUNCIL Housing Reviewer: Hilary Lovelace, CD – Housing (651-602-1555) The Plan is consistent with the 2040 Housing Policy Plan. As of 2016, the City has more than 1,500 homes including 30 multifamily units and more than 1,400 single-family homes. Approximately 150 homes are rented. More than 550 housing units are currently affordable to households earning under 80% of Area Median Income (AMI). Nearly 220 households earning 80% of AMI or below are paying more than 30% of their income toward housing costs. Notably, there are 16 units affordable to households with income at or below 30% AMI and more than 80 cost burdened households with incomes at or below 30% AMI. The Plan identifies existing housing needs including senior housing and assisted living, affordable housing, and maintaining existing housing units. The City currently has 40 publicly subsidized homes for seniors. The City does not have an allocation of affordable housing need in the 2021-2030 decade as it is not expected to experience any sewer-serviced growth. The housing implementation plan component of the Plan describes that the City will consider TIF, housing bonds, and tax abatement for projects that offer units affordable at or below 80% AMI. The Plan also indicates that the City will refer residents to housing assistance programs offered by Minnesota Housing and the Washington County CDA. The City states that they will work with groups and stakeholders to develop actions plans to meet the need for multi-generational living. Water Supply Reviewer: Brian Davis, ES – Water Supply Planning (651-602-1519) The Plan is consistent with WRPP policies related to water supply, including the policy on sustainable water supplies, the policy on assessing and protecting regional water resources, and the policy on water conservation and reuse. Because the community does not own/operate a municipal community public water supply system (PWS), no local water supply plan is required. Community and Subsurface Sewage Treatment Systems (SSTS) Reviewer: Jim Larsen, CD – Local Planning Assistance (651-602-1159) The Plan indicates that there are 1,426 individual SSTS, two private Community Wastewater Treatment Systems, and three small publicly-owned and operated Community Wastewater Treatment Systems in the City. The three latter facilities, historically referred to as “201 facilities” are operated and maintained by the City in accordance with City Ordinance No. 189. Washington County manages all aspects of SSTS installation, inspection, and maintenance management for the City. County SSTS Ordinance 206 (Development Code Chapter 4) is consistent with Minnesota Pollution Control Agency Chapter 7080- 7083 Rules and Council 2040 Water Resources Policy Plan requirements. Special Resource Protection Solar Access Protection Reviewer: Cameran Bailey, CD – Local Planning Assistance (651-602-1212) The Plan is consistent with statutory requirements (Minn. Stat. 473.859) and Council policy regarding planning for the protection and development of access to direct sunlight for solar energy systems as required by the Metropolitan Land Planning Act (MLPA). The Plan includes the required solar planning elements. Aggregate Resource Protection Reviewer: Jim Larsen, CD – Local Planning Assistance (651-602-1159) The Plan indicates, consistent with the Council’s aggregate resources inventory information contained in Minnesota Geological Survey Information Circular 46, the presence of viable aggregate resources in Page - 6 | METROPOLITAN COUNCIL the City. The Plan identifies the extent and location of the resources within the City. The City utilizes an Aggregate Mining Overlay District within its zoning ordinance to oversee aggregate extraction operations. Plan goal and policy statements call for preservation of sensitive resource areas, allowance for the safe and orderly extraction of aggregate resources prior to transitions to other uses of other areas where viable resources are present, and restoration with native vegetation following resource extraction. Historic Preservation Reviewer: Corrin Wendell, AICP, CD – Local Planning Assistance (651-602-1832) The Plan appropriately addresses historic preservation within the City. The Plan preserves and augments the community character and history in the community as well as identifies that the City will continue to review and modify, as necessary, the ordinances as they relate to the preservation of significant historic resources. Plan Implementation Reviewer: Corrin Wendell, AICP, CD – Local Planning Assistance (651-602-1832) The Plan includes a description of and schedule for any necessary changes to the capital improvement program, the zoning code, the subdivision code, the SSTS code, and the housing implementation program. The Plan, with supplemental materials, describes the official controls and fiscal devices that the City will employ to implement the Plan. Specific implementation strategies are contained in individual chapters of the Plan, with capital improvements planning detailed in the appendix. Compatibility with Plans of Adjacent Governmental Units and Plans of Affected Special Districts and School Districts The proposed Plan is compatible with the plans of adjacent jurisdictions. No compatibility issues with plans of adjacent governmental units and plans of affected special districts and school districts were identified. Documents Submitted for Review In response to the 2015 System Statement, the City submitted the following documents for review: • June 14, 2018: Scandia 2040 Preliminary Plan • December 26, 2018: Scandia 2040 Comprehensive Plan • February 26, 2019: Revisions to surface water management plan, wastewater, land use, housing, and parks and trails • May 13, 2019: Revisions to land use and wastewater • June 4, 2019: Revisions to land use • June 24, 2019: Revisions to land use • July 1, 2019: Revisions to land use and wastewater • July 22, 2019: Revisions to land use Attachments Figure 1: Location Map with Regional Systems Figure 2: Thrive MSP 2040 Community Designations Figure 3: Proposed Community Designations Figure 4: Existing Land Use Figure 5: 2040 Planned Land Use Page - 7 | METROPOLITAN COUNCIL Figure 1. Location Map with Regional Systems Page - 8 | METROPOLITAN COUNCIL Figure 2. Thrive MSP 2040 Community Designations Page - 9 | METROPOLITAN COUNCIL Figure 3. Proposed Community Designations Source: Bolton & Menk Page - 10 | METROPOLITAN COUNCIL Figure 4. Existing Land Use Page - 11 | METROPOLITAN COUNCIL Figure 5. 2040 Planned Land Use LAND USE POLICIES BY COMMUNITY DESIGNATION 161 RURAL CENTERS: Serving the rural areas as small town centers of commerce Rural Centers are local commercial, employment, and residential activity centers serving rural areas in the region. These small towns are surrounded by agricultural lands and serve as centers of commerce to those surrounding farm lands and the accompanying population. Although smaller in scale than urbanized communities, Rural Centers provide similar development patterns and locally accessible commercial services for the surrounding area. Orderly and Efficient Land Use COUNCIL ROLE • Partner with local jurisdictions to work toward the orderly expansion of Rural Centers in a manner that efficiently uses infrastructure and guides growth where infrastructure capacity exists while preserving prime agricultural soils and surrounding low-density residential uses. • Consider long range potential for improvements to regional infrastructure to support expected growth at average residential densities of at least 3-5 units per acre or more. • Encourage innovative approaches to development where existing infrastructure and capacity are able to support increased residential densities. • Attain a balance of urban and rural uses to retain the viability of the agricultural economy and direct growth towards Rural Centers as is appropriate. • Partner with local communities to improve land use patterns to reduce carbon emissions. COMMUNITY ROLE • Plan for forecasted population and household growth at overall average densities of at least 3-5 units per acre. • Strive for higher-density commercial uses and compatible higher-density residential land uses in the commercial core of the community to ensure efficient uses of existing infrastructure investments. • Work with adjacent jurisdictions to execute orderly annexation agreements where forecasted growth exceeds land capacity within existing city boundaries. • Work to focus forecasted growth in areas with existing infrastructure capacity to protect existing farm land and prime agricultural soils for the long term. • Adopt ordinances that coordinate development with infrastructure availability. • Identify areas that will accommodate post- 2040 growth forecasts and implement strategies to preserve these areas for future growth. Plan for necessary infrastructure improvements. THRIVE MSP 2040 LAND USE POLICIES BY COMMUNITY DESIGNATION 162 RURAL CENTERS Natural Resources Protection COUNCIL ROLE See policy discussion on Natural Resources Protection in the “Land Use Policy” section. COMMUNITY ROLE See policy discussion on Natural Resources Protection in the “Land Use Policy” section. Housing Affordability and Choice COUNCIL ROLE See policy discussion on Housing Affordability and Choice in the “Land Use Policy” section. COMMUNITY ROLE • Designate land in the comprehensive plan to support household growth forecasts and address the community’s share of the region’s affordable housing need through development and redevelopment at a range of densities.• Use state, regional, and federal sources of funding and/or financing and development tools allowed by state law to facilitate the development of new lifecycle and affordable housing.• Plan for future staged growth through 2040 and beyond to accommodate a variety of housing choices based on local needs. LAND USE POLICIES BY COMMUNITY DESIGNATION 163 RURAL CENTERS Water Sustainability COUNCIL ROLE See policy discussion on Water Sustainability in the “Land Use Policy” section. COMMUNITY ROLE See policy discussion on Water Sustainability in the “Land Use Policy” section. Access, Mobility, and Transportation Choice COUNCIL ROLE • Plan regional infrastructure consistent with a rural level of service. • Explore transit links to urban areas based on demand and the availability of resources.• Plan transit facilities to better incorporate alternative mode connections for facilities serving locations where commuters have to travel greater distances to complete their trip. COMMUNITY ROLE • Plan for and construct an interconnected system of local streets, pedestrian facilities, and bicycle facilities.• Plan and develop local trail connections to the regional parks and trails system where appropriate. THRIVE MSP 2040 LAND USE POLICIES BY COMMUNITY DESIGNATION 164 RURAL CENTERS Economic Competitiveness COUNCIL ROLE • Encourage communities to support a range of housing opportunities for those interested in a more rural lifestyle. • Support the development of workforce housing to provide nearby housing options for employees of local employers. • Convene interested partners to further strategies toward increasing regional competitiveness and include discussion of how Rural Center communities can contribute to the region’s overall economic growth. COMMUNITY ROLE • Consider best practices for providing housing opportunities to support local employment and community needs. • Consider identifying key intersections that accommodate connections between rail and highway infrastructure that could serve an intermodal purpose. • Consider how land uses adjacent to key intersections could provide access for trucking, freight, barge, shipping, or warehousing purposes that may strengthen or bolster the local economy. • Consider how local efforts to focus economic development strategies along existing commercial centers (historic downtowns or commercial corridors) can contribute to the region’s overall economic competitiveness through enhanced integration of local and regional planning efforts. • Identify important multimodal intersections, alternative freight routes, key intersections, and other existing opportunities that may contribute to local and regional economic competitiveness. Building in Resilience COUNCIL ROLE See policy discussion on Building-in Resilience in the “Land Use Policy” section. COMMUNITY ROLE See policy discussion on Building in Resilience in the “Land Use Policy” section.