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Wednesday, January 29, 2025

More Fiction from the Grand Duchy of Eureka

The latest outrageous comment came last night at the roundtable joint meeting of your Board and Planning Commission. This time it was espoused by Board Chair Pete Storlie, demonstrating a lack of understanding of real estate values, township zoning, and the oversight roles of the State of Minnesota and the Twin Cities Metropolitan Council, not to mention local history, free enterprise, and resident opportunities already fulfilled.

This is why we are Eureka Township in Dakota County, Minnesota, not the independent nation of the Grand Duchy of Eureka.

It is noted, also, that not a single member of the Board or Planning Commission present countered the comment with any facts. Do you wonder why?

Master Storlie, referring to the ability to transfer or sell housing rights: “Transfers are a disaster.” He added it is terrible that a resident should have to pay $30,000 or even $5000 to get a housing right.

I wonder if gasoline is also free in the Grand Duchy?

Reality is based on facts, not an alternate universe of wishful generalizations.

For some two centuries of modern zoning in the United States, it has been recognized that land that can be built upon is more valuable than the same land if not buildable. Zoning enables both guiding planned development as well as protecting residential areas from undesirable development that can negatively impact property value and quality of life.

Pricing is a private negotiation between seller and buyer – Eureka has no role in the pricing, by design. The Township’s only responsibility is to accurately track who legally owns the right and where it is moved from and to when transferred. Eureka needs to be able to prove to Met Council that we are not illegally creating new housing rights without their authority.

By the way, tracking is the key quick reference benefit of the Eureka Property Database I created for Eureka, but for 2 full years now the Board won’t even discuss it after two years of interest and appreciation for the effort by earlier Board members.  

The reality is that the Met Council has told Eureka 4 times that I know since 2007 that they do not foresee Eureka being allowed a higher zoning density until 2040 because of the 380 unused housing rights currently still existing.

From 2014-2022, an average of only 3 new houses per year were built. I know the number has gone up slightly the past two years, but I do not have the actual numbers (since volunteers are shunned). This is a major reason Met Council does not want Eureka to go to higher zoning density.

This was the motivation to expand the cluster feature flexibility to be available to more property owners. It was renamed transfers to distinguish it from cluster term.

From 1990-2022, 60 housing right cluster/transfers have been done.  Each generally benefits 2 households each, such as a young family being able to build close to elderly parents to help them be able to enjoy their golden years at home rather than needing to move to assisted living in some city. My wife and I lived that opportunity, moving from out-of-state, for the benefit of her parents – cluster move #19 in 2000.

The 2013 expanded transfer feature that I led offset the gradual loss of simple clustering opportunities.   

The new features also opened the opportunity for as many as three families to benefit from one transfer 

1. the seller of land less valuable for not having a housing right, 

2. the seller of an unused housing right, and

3. a buyer wanting to build on the land not already having a housing right.   

The housing right seller gets money that may be needed for health reasons or retirement, while keeping land intact for their family.

Gee, what a disaster to allow housing right transfers to happen…

Tuesday, January 28, 2025

Those Who Wish on Distant Stars Can Trip on What is Right In Front of Them...

 It's about tax revenue - more than one way to skin this cat....

Here's another email sent to Board and PC.  Those stuck inside box don't see daylight. I see many of you don't want to take time to read my posts.  One learns more from facts than sweeping generalizations.  😃

I added bold to start of each paragraph.

Subject: Housing Right (and tax revenue) Opportunities Hidden from Interested Parties

Hi Liz,

 Please forward to all Board and PC members.  Thank you.

 Jeff

To All Board and PC Members:

A land owner in Eureka recently commented to me that they get requests almost weekly from interested parties pleading to buy one of their housing rights. Apparently at this time most remaining holders of unused housing rights are understandably saving them for younger family members or as part of their long-term retirement planning or emergency reserve.

In 2021, two property owners with a total of 5 housing rights made changes.  One family asked to be annexed by Lakeville.  What a shame they, for whatever reason, didn’t talk to anyone on the Board, PC, or clerks to learn they had a housing right worth at least $30,000 they could have sold before the annexation. Now it is goneI wonder why they didn’t talk to anyone first?

The other owner sold two parcels with 4 housing rights to an entity committed to blocking any future development on the properties.  That Eureka owner missed out on at least $120,000 or more they could have gained prior to the property sale.  At least those housing rights still exist, but now revenue from the sale will go to an outside party, not the Eureka owner.  I wonder why they did not talk to anyone on the Board, PC, or clerks?

A third family heard by word of mouth about my role in creating the 2013 transfer feature and helping others.  They contacted me directly.  I helped them by doing the research and explaining their opportunities (at no cost). There were some complications that needed to be managed carefully and I helped guide them on those so when they came to the PC and Board, they had all the answers I knew they would need to smoothly get the needed permit approvals in a timely fashion.  They were very pleased that they could salvage a housing right for their family before their request to Lakeville for annexation was accepted by Lakeville.

I don’t wonder why the third party came to me instead of to a clerk, PC or Board member.  They told me.

If interested parties were introduced to the owner of the 4 still available housing rights, there could still be 4 more new houses built generating approximately $5000 each in property taxes, of which $4000 total would come to Eureka annually.  I have no doubt the new current owner would be delighted to accept the windfall for housing rights they have no intention of using themselves.

Instead of becoming aware of the current market situation, you all seem single-minded in pursuing Commercial or Industrial zoning in the hope of magically attracting big enough brick and mortar businesses that would actually contribute tax revenue above the revenue per acre currently in the Township. 

Even strip malls with small businesses have growing vacancies nation-wide due to the competition from big chains and especially Amazon.

I have looked up the taxes on 11 of the approximately 75 private businesses scattered around Eureka. All that I looked up involve out buildings, as no home businesses in Eureka are taxed commercially which is reasonable and fair.   Only 6 of the 11 that I checked are classified other than Residential Homestead by the Dakota County Assessor because the 5 operations are neatly contained in an accessory building that looks no different than my accessory building used for personal storage, no business activity.  Two of the 6 that are Commercial Preferred and Industrial Preferred are the two biggest operations in Eureka.  Yet all 11 are at or below average in tax revenue on a per-acre basis compared to the average Eureka home property.

Your initial draft map of Eureka showed Commercial/Industrial only (because it was said “worrying about buffer zones might take too long” at a joint roundtable meeting).  Obviously none of you were even aware that “spot zoning” is against the law in Minnesota, but there was more than one example of that banned practice on your random map.

 I hope you will listen and learn from the consulting firm you have hired on this subject.

 Jeff Otto

Monday, January 27, 2025

Town Board Neglect Could Cost YOU

Following is the email I just sent to the Eureka Board and Planning Commission members, my 4th reminder over the past 24 months of unfinished Ordinance update work to be completed. I have consistently offered to draft (and have done at no cost to Board) needed changes but now have been ignored and actually blocked from helping.

                                                                           January 27, 2025

Hi Liz,

 Please forward as information to all Board and PC members.  Thank you.

 Jeff

 

 To all Board and PC members:

The property owners of Eureka Township are at risk of authorized zoning-related opportunities being mishandled because unfinished Ordinance language updates have been left in a confused and self-contradictory state.

Ordinance Chapter  216 Subdivision of Land has duplicative and contradictory language to the more carefully constructed and vetted language in Chapter 240 Zoning.

Chapter 240 Zoning has confused and contradictory definitions left unfinished.

The definitions review that was dumped in the laps of then-new clerks in 2022 working to learn their responsibilities has clearly not been completed. It was unrealistic for the Board to hand off this responsibility to clerks who did not have the benefit of hearing discussions of which definitions had been vetted and the key language nuances involved.

Just in Chapter 240, there are definitions tacked on the end (Article X.240-64) that include inconsistent definitions already covered in Article III.240-9. There is even a question as to how and when 240-64 was added or moved (by General Code, perhaps?).

It appears the Board does not understand the practical limits of an outside firm to “review” Eureka language and intent. Instead, Boards continue to waste $995 a year to use GC’s overrated software because you don’t understand how simple and easy it is to link to Ordinance pdf files as had been done for a couple decades previously. Do you not wonder why there are only 3 other local governments in Minnesota, among the hundreds, that pay to use GC?

Chapter 216 Subdivision of Land has definitions contradicting the more carefully vetted definitions in Chapter 240.9.

There was already a property change request that was more than a simple lot split that the PC and then Board didn’t know how to handle, in part because the new updated form created in the Fall of 2022 had not been adopted by the Board.

216 Subdivision also refers to a form that does not exist because the 2022 form was designed to easily handle all types of land boundary changes as described in Chapter 240 Zoning and aligned with the reporting requirements of Dakota County.

This is the fourth time I have brought this need for finishing work to be done in both 240 and 216.  Neither the PC nor the Board have even had any discussion on this need identified the 3 previous times.

I have been the primary author of the unique housing right transfer features and, based on observing and understanding examples since 2013, realized what improvements could be made to clarify how to handle unusual circumstances. The Board abruptly terminated this update, and blocked me from continuing, as it neared completion in early 2023.

The proper recognition of Grandfathered protection of housing rights only occurred in 2010 when I was Board Chair, despite approximately 200 properties being in this category since April 12, 1982.

It is apparent and proven that I have the most complete and practical understanding of what makes Eureka zoning special for the benefit of property owners.  I have devoted hundreds of unpaid volunteer hours to property research and analyses, creating language and related forms, and directly helping resolve individual situations for the benefit of property owners.

Why won’t you allow me to again provide, at no cost, draft language for your review and implementation?  It has now been two full years of Board and PC neglect, this being the fourth time I have reminded everyone of some of the unfinished issues

The only conclusion is that there is a lack of Board and PC understanding of current language issues, let alone how to fix them. This is a clear responsibility of any town board. Why not you?

Jeff Otto

 


Thursday, January 23, 2025

IMPORTANT MEETING ON JANUARY 28

 At 7:00 p.m. on January 28, the Board will be holding a special meeting to “discuss results from the open house” which was held concerning possible new land use zoning. 

Both the WSB planner and the Township attorney will be there to lend their expertise  

You are urged to attend, whether in person or via Zoom. The link for Zoom is available on the Eureka website. The former address eurekatownship-mn.us will take you to the new website address of eurekamn.gov. Either way. 

It is vital that all Eureka citizens are informed about their Board’s proposed actions. These actions, if okayed by the Met Council, would result in significant property use changes for landowners. 

The Met Council releases systems statements every five years. The systems are areas such as sewer and water services, transportation, housing, parks, etc. These projections forecast out to 2050. You can access more information at the Council’s websites. 

Please attend! Thank you!

Monday, January 6, 2025

YOU HAVE TO WALK BEFORE YOU CAN RUN…



You should be aware by now that the current Town Board and Planning Commission have been pursuing major changes to our zoning. 


I’ve watched the sausage being made, and it sure isn't pretty. I've seen and heard decisions made on an “I think this area could be zoned commercial/industrial. What do you think, fellow Commissioner/Supervisor?” basis. As in "give it your best guess." Or, "this would be an area to make high density for housing, don't you think?" These ideas would affect many people's properties, people who in many cases don't want these changes. 

I don’t think this effort is even founded on sound planning principles and facts. There has been no appreciation shown for what has come before regarding interactions between the Township and the Metropolitan Council or the Township and professional planners already covering these topics. The thought seems to be we can do all this without Council oversight or even recognition of what its reaction to different such ideas has been to date and over many years.  Any data or recommendations from past studies have been dismissed out of hand if they are even acknowledged at all. 

To my knowledge, there has been NO DISCUSSION at this time with the Metropolitan  Council. There has been no mention that the Council may not go along with what this Board wants to do. In my opinion, this has been presented all along as easily doable. Many people might not be conversant with this topic. We live in the seven-county metropolitan area and are subject to Council oversight whether anyone likes it or not.



I and many others have been concerned by the lack of consideration shown to past efforts. We've had excellent professional assistance with a significant investment of time by many and, of course, Township funds, but the current officials don't seem to want to even hear about it. 

Which leads us to the “walk before you run” perspective. I’ll give you just a couple examples of actions that might indicate that a thoughtful, informed basis might be lacking. One thing a Board must NEVER do is be “arbitrary and capricious.” It must have a sound rationale for its actions or it exposes the Township. 



Example 1: There was a recent application for an ag exempt zoning approval. If the applicant meets the State STATUTORY requirements, there is no building permit required nor inspections performed. 

The cost for an ag exempt application is a $25 fee based on Clerk time and a $25 fee to cover a Planning Commissioner check of the stakes for the building and Ordinance setbacks which do still apply. To permit similar structures under the Building Code can easily cost thousands of dollars--part of which goes to the Township. 

Under the Minnesota State statute, the land upon which the ag-exempt structure will be placed must be taxed as ag by, in our case, the Dakota County Assessor. It must have been in ag production for at minimum the year preceding the application. There is a section of the application the applicant uses to check off at least ONE (and all) ag uses of the property. The public is not allowed in the structure which is the reason the Legislature gave farmers a financial break on permitting and inspections. (The Building Code exists to ensure our safety.) Only employees or lessees, no public, are allowed to use the building. There are certain Ordinance setbacks required including distances from neighbors’ residences to reduce problems with noise, dust, odors, etc. 

The application that came before the Deputy Clerk and Commission had NO agricultural uses checked. I believe I heard at the meeting that the Township attorney was consulted, and he agreed that this property did NOT qualify at the time for this exemption. The property was taxed for two uses, one of which was ag as this property had originally been part of a family farm, later divided. However, the property had not been used recently for ag production, but for the other use listed. It was recommended that the property owner go through the usual process involved with the Building Code, assuming he wanted the building built in the coming construction season. Otherwise, ag production is required first.

The BOARD went ahead to approve the ag exemption

Supervisor Ceminsky said if he bought a farm, he should (automatically) get the exemption. Unfortunately, if that farm were not active, he would have to put it into ag production for a minimum of one year and THEN ask for the ag exemption. The statute requires this.  



Supervisor Novacek said he thought this property was “on the edge.” What “edge” might that be? You either meet the requirements or you don’t. If you don’t, you do not receive the exemption or, at the very least, must put the application on hold for a year while you get the property back into ag production. A simple hayfield can qualify.



The person representing the application, not the property owner, stated he had come a long way to represent the owner, and the zoning approval should be given. Why, he even said that probably in “the next three years or so” the ag production would return. The statute doesn’t refer to any nonbinding promises as sufficient of course; it requires ag production for at least the preceding year. No matter how far one has come to represent the landowner.

Yet the Board accepted that argument and granted the exemption. 

To give credit where credit is due, Supervisor Pete Storlie had it right this time during the discussion. 


Example 2: Each Board that is elected has a duty to enforce not only the Ordinances and obey any superseding laws such as state statutes, but also to enforce such items as CUPs and IUPs, and to the point here, settlement agreements resulting from litigation actions.

Having been  involved in this matter with other Board officials at the time, I was aware of the settlement agreement provision on a certain property that required maintaining berm plantings. There is a landscape plan that was part of the agreement. It is in the files at Town Hall. It specifies locations and specific types of trees. The opposite side to the Township in this agreement agreed to this detail. Recognizing at the time, that trees can die or become diseased, I had asked for a provision stating these plantings must be maintained (such that any dying or dead trees should be replaced according to the landscape plan).



In time for the spring planting season last year, I brought this matter before the Board in April through means of public comment. The Board did not discuss this outside of Chair Pete Storlie stating, "I would have to see that agreement."

Nothing happened. So, in time for the fall planting season, I brought this matter up to the Board again in August of last year. I referred to Storlie's comment from April and inquired whether he had asked the Clerk to show him the agreement, including the landscaping plan. There was no response to this. A simple drive by the property would reveal the trees that obviously need replacing, and there are many of these screening trees that qualify for replacement. All that was said was, "Thank you, Nancy." No discussion by the Board on this duty of theirs during public comment time. The Chair had spoken and that appeared to be that. The others on the Board didn't seem to understand that they could ask for discussion later in the meeting or simply didn't care to.

Yet their duty remains. It remains unfulfilled. Your taxpayer dollars paid for attorney advice in the lawsuit and in coming to the agreement. The Board should want to avoid “nonfeasance.” MN Statute defines this term. 

To walk without stumbling might be considered a requirement before running with major zoning changes.