PLANNING COMMISSION AND ENVIRONMENTAL POLICY BOARD (EPB): Review Status of Mississippi River Corridor Critical Area (MRCCA/Critical Area) Rulemaking Process by the Minnesota Department of Natural Resources (DNR) as Directed by the 2013 Minnesota Legislature

(Anticipated Start Time = 6:30 p.m.)

The purpose of this case is to seek consensus on a Statement of Policy document related to the Mississippi River Corridor Critical Area Rulemaking Project.

In 2013, the Minnesota Legislature authorized the Minnesota Department of Natural Resources (DNR) to commence rulemaking related to the Mississippi River Corridor Critical Area (MRCCA) (the "Critical Area"). The intent is to update existing regulations found in Minnesota Statute Chapter 116G. The Critical Area extends from Ramsey's western border south down to Hastings, stretching nearly seventy-two (72) miles and encompasses approximately thirty (30) governmental subdivisions across the metro area. It is noted that these regulations presently exist. The rulemaking process proposes to update these existing rules.

The Critical Area is an overlay district that establishes minimum development standards intended to provide protections for the Mississippi River including, but not limited to, stormwater management, bluff stabilization, and protection of scenic qualities. Minnesota Statute Chapter 116G establishes the district and requires that local government units with land use and zoning authority adopt ordinances in substantial compliance with the Statute. The local ordinance must be approved by the DNR. The local unit of government is responsible for administration and enforcement. The City adopted its original ordinance in circa-mid 1980s. A majority of Ramsey is currently classified as 'Rural Open Space' under existing rules. There are a number of existing lots and future development scenarios under the City's Comprehensive Plan that conflict with this designation.

The rulemaking project originally commenced in 2009. However, the legislative timeframe expired, and updated rules were never adopted. The 2013 Legislature revised the original scope for rulemaking and authorized a new rulemaking project. Since some time has lapsed since the 2009 process, Staff is seeking policy direction on how to approach participation in the rulemaking process. As there have been a number of years since the last discussion on this rulemaking process, this is an opportunity to bring new members up to speed on the process, and ensure that Staff brings the proper policy message forward in discussions with the DNR. One potential positive outcome is to establish land use districts that are more compatible with existing development and planned future development under the Comprehensive Plan. However, there is an opportunity that additional lawful, non-conforming structures are created due to revised rules such as setbacks. Staff will need to fully analyze the impacts to Ramsey once the final version of the draft rules are available.

The League of Minnesota Cities and Metro Cities (both organizations working with local governments) held an introductory meeting with DNR staff and local communities. A second follow up meeting is scheduled for October 24, 2013.

Per City Council direction, the City held a collaborative public process for Ramsey residents on Monday, September 16, 2013 to identify key issues, resources, barriers, and alternatives. The intent was not to formulate support or opposition to the draft rules; the intent of the process was to identify key policy topics to help formulate the City's policy stance. This was also an opportunity to identify where questions still remain to determine if certain concerns could or could not be mitigated moving forward.

The unedited comments received from that process were forwarded to the DNR on October 11, 2013 in preparation for a Local Government Officials Meeting on October 24, 2013. NOTE: this was not an official statement of policy on behalf of the City; this was feedback available to date. The purpose of tonight's discussion is to formulate this official policy statement. The DNR will be hosting public Open Houses later this Fall/Winter, whereby the City will have a better understanding of the final draft rules anticipated to be forwarded to an official Rulemaking process. Key topics discussed at Ramsey's process included the following:
 

• Retain ability to maintain local control over land use decisions
• Retain ability to perform vegetation management
• Retain ability to perform erosion control management (i.e. rip-rap at water line)
• Seek funding opportunities to assist property owners with erosion control issues
• Ensure that lawful, non-conforming ("grandfather") rights are maintained

DNR Staff met with City Staff on Thursday, September 25, 2013. The DNR held meetings individually with each of the impacted communities. The intent of the meeting was to (as outlined by the DNR):
 

• Meet the staff who develop plans and administer the Critical Area ordinance
• Provide an overview of and answer questions about the rulemaking process
• Review the district map(s) for each community
• Go over the draft rules and identify opportunities to improve them
• Review current Critical Area ordinances
• Review the bluff maps that have been developed – these are for informational purposes only and are not part of the rulemaking

At the September 25, 2013 meeting (in addition to the October 11, 2103 written response), Staff forwarded the comments received from Ramsey Residents to DNR Staff and discussed opportunities and issues Ramsey currently has with the overlay district as well as the draft rules.

Metro Cities and the League of Minnesota Cities are co-sponsoring a meeting for Staff and Elected/Appointed Officials on Thursday, October 24, 2013 to update corridor communities on the progress of the rulemaking process and review updates to draft rules. In order to prepare for the October 24 meeting, the DNR called for current feedback by October 11, which Staff did respond with current materials. Due to timing, Staff was not able to schedule the Joint Meeting with Planning Commission and EPB prior to the Metro Cities/League of Minnesota Cities Meeting on October 24. Please note: the official comment period has not begun, and the City will be able to comment and respond officially. The Official Comment Period is anticipated to be open during November and December, 2013.

There is the potential of lawful, non-conforming lots created with the existing rules; however, a number of existing lawful, non-conforming lots could become conforming lots with rule changes. The DNR has prepared a comparison chart, which is attached to this case. One opportunity with the current rulemaking process would be to change existing lawful, non-conforming lots to conforming lots through revised land use districts. It should be noted that a number of protections are granted to property owners that constructed structures lawfully prior to an ordinance being adopted, which are classified as lawful, non-conforming (that being that an existing structure now does not conform to a new rule that did not exist when the structure was constructed). The City derives it's powers to protect lawful, non-conforming uses and structures under Minnesota Statute 462.357. Staff is working on potential ability to further strengthen these protections based on resident feedback.

Additional information on the rulemaking process can be found at www.cityoframsey.com/shoreland.

The Official Comment Period is anticipated to open in November, 2013 and run through December, 2013.

Participation in the Rulemaking Project is being handled as part of normal Staff duties.

The Community Development Department is the responsible party (Development Services Manager).

The desired outcome is to seek consensus on a Statement of Policy related to the Mississippi River Corridor Critical Area Rulemaking Project.