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7.b iv) Update on Shoreland Ordinance Memorandum To: Scandia City Council Reference: Scandia Draft Updated Shoreland Ordinance – Public Hearing and Update Copies To: Neil Soltis, City Administrator Brenda Eklund, City Clerk Project No.: 16623.000 From: Sherri Buss, RLA AICP, Planner Routing: Date: April 9, 2018 Background The Planning Commission has been working on updating the City’s Shoreland Ordinance during the past year. The Commission used the DNR’s new Model Shoreland Ordinance as the basis for the update, and modified the Model Ordinance to adapt to meet Scandia’s needs. A copy of the draft ordinance is attached to this memo, and is available on the City’s website. The Commission held a public hearing on the Draft Shoreland Ordinance at its meeting on April 3. The City sent copies of the draft ordinance to local lake associations a month before the public hearing to permit them to review and comment on the ordinance. The Commission received several written and verbal comments from lake association members about the ordinance at the public hearing. Most comments recommended that the City maintain or strengthen its current standards to protect the lakes in Scandia from potential impacts of development on adjacent parcels—in particular, potential development of the remaining large parcels adjacent to Big Marine Lake. Proposed Changes to the Shoreland Management Regulations The list below identifies some sections of the draft ordinance that include porposed changes from the draft ordinance or were of particular concern in the Planning Commission discussion and public hearing. 1. Section 2.1 – Jurisdiction. The Jurisdiction section language matches the DNR’s Model Ordinance language, which requires that the City regulate the shoreland areas of water bodies that are greater than 10 acres in size. However, Minnesota Statutes 103F (referenced in the Model language) also includes a list of the water bodies that the City must regulate, and this list includes all Types 3, 4 and 5 wetlands that are 2.5 acres in size or larger. Shoreland Model Ordinance Page 2 April 17, 2018 Update for Scandia City Council The City needs to decide if it wants to regulate only the Shoreland areas of water bodies that are larger than 10 acres, or also designate and regulate Shoreland areas around all Type 3, 4 and 5 wetlands that are 2.5 acres and larger. (Shoreland areas are 1,000 feet from the OHWL of lakes and wetlands) The City Administrator provided a map for this discussion at the public hearing that showed 1) the minimum group of Public Waters that the City must regulate based on the Model Shoreland Ordinance; 2) the Public Waters that the City currently regulates in its Shoreland Ordinance, which includes more water bodies than 1); and the Public Waters that the City would regulate in its Shoreland Ordinance if it added all of the Public Waters wetlands that are 2.5 acres in size or larger. The Planning Commission recommended that the City update the ordinance so that it would regulate all of the Public Waters and to have all other wetlands regulated only by the setbacks listed in Section 6.4B.. 2. Section 2.6 – Definitions. The definitions section was revised and graphic illustrations were added to help to explain items such as “bluffs” and “height of building.” The height of building definition is the same one that is used in the City’s Zoning Ordinance. Some definitions have been added, such as “accessory dwelling unit,” that are used in the Scandia Zoning Ordinance but are not in the state Model Ordinance. 3. Section 3.7 –Nonconformities. This section includes the regulations for nonconforming lots that are in Scandia’s Zoning Ordinance and in State Statutes, rather than reference the regulations, so that all of this information would be available in the ordinance. Item D is specific to shoreland areas. 4. Section 4.1 – Shoreland Classification System and Land Uses. This section updates the list of lakes and streams that are now classified by the State of Minnesota as “public waters” and are therefore subject to the Shoreland regulations, and shows their classifications. The list is consistent with the Planning Commission’s recommendation in item 1, above. 5. Section 4.1 – Land Uses – This section lists the land uses that are proposed to be allowed or permitted with a CUP in the Shoreland areas around Recreational Development Lakes and Natural Environment Lakes. The items in red type are different from the current City ordinance. 6. Section 6.0 – Lot Area and Width Standards – The Planning Commission requested that lake associations and the public review this section and provide comments on whether the City should continue to use its existing standards for lot area and width (shown in red type) or should adopt the DNR Model Ordinance standards (shown in black type). The DNR standards would allow smaller lots and higher densities on parcels that develop in the future around the lakes than the City’s standards. The Commission recommended that Scandia maintain the lot area and width standards of the current Shoreland Management ordinance in the updated ordinance. This is consistent with comments the Commission received at the public hearing, and Comprehensive Plan goals to protect surface waters in Scandia. Shoreland Model Ordinance Page 3 April 17, 2018 Update for Scandia City Council 7. Section 6.4 A– Placement Height and Design of Structures – The Planning Commission is requested that lake associations and the public review this section and provide comments on whether the City should continue to use its structure and septic system setbacks (noted on the table), or adopt the DNR Model Ordinance standards. The City’s setback requirements are higher for Natural Environment Lakes and streams than the DNR Standards. The DNR would allow the City to require smaller setbacks when lots are developed using the City’s 201 septic systems—the City’s current ordinance does not permit this. The Commission recommended that Scandia maintain the structure and septic system setback standards of the current Shoreland Management ordinance in the updated ordinance. This is consistent with comments the Commission received at the public hearing, and Comprehensive Plan goals to protect surface waters in Scandia. 8. Section 6.4 B– Wetland Setbacks – This is a new section that replaces the current requirement for a uniform 75’ setback from the boundaries of all wetlands (called “unclassified water bodies” in the ordinance). The draft ordinance would adopt the wetland buffer requirements that are used by local watershed districts as the required setbacks—higher quality wetlands would require larger setbacks than low quality wetlands. The section also exempts some small wetlands from the setback requirements—consistent with the Minnesota Wetland Conservation Act regulations. 9. Section 8.3 – Grading and Filling – This section sets the requirements for when grading and land alteration permits are needed. The thresholds in Shoreland areas would be lower than in non-Shoreland areas. The City has been concerned with changes that have occurred on some lots that have affected adjacent lots where permits were not required in the past. 10. Section 10.0 – PUDs – the draft ordinance would permit Planned Unit Developments (PUDs), and adopts the DNR’s standards for PUDs, which require dedication of a significant portion of shoreland area in exchange for higher densities in some parts of the PUD. City staff have attached a DNR handout that helps to explain the requirements for PUDs. Testimony at the Public Hearing supported adding the PUD section to provide an option to landowners for development of larger parcels that would require that 70% of the Shore Impact Zone and other natural resource areas be dedicated as permanent conservation areas in order to permit higher densities in areas to be developed farther from the lakeshore. Next Steps To Ordinance Adoption The DNR requires that the City submit its Draft Shoreland Ordinance for DNR review and comment prior to ordinance adoption by the Citt. The DNR will provide comments and may grant conditional approval of the ordinance if the draft is substantially compliant with the State’s shoreland regulations.. The City may adopt the ordinance after it addresses the DNR’s comments and receives conditional approval. Shoreland Model Ordinance Page 4 April 17, 2018 Update for Scandia City Council Staff submitted the draft ordinance with the changes recommended by the Planning Commission to the DNR on April 4. The DNR has up to 30 days to review and provide comments to the City.