BAXTER — A Dondelinger petition for annexation by ordinance was approved by the city of Baxter Tuesday.

Dondelinger is proposing moving its General Motors dealership on Highway 210, its Hyundai dealership and its auto body and quick lube service in Brainerd to nearly 12 acres at the corner of Highway 371 and County Highway 77, or Pine Beach Road.

The previously contested annexation between Dondelinger and the city has been the subject of numerous closed sessions for the Baxter council.

In February, the city began looking at annexation options. City officials said they were concerned with the ability of a septic system to handle the proposed commercial development for an auto center.

With a high water table, sandy soil and ground water that moves from that wetland toward residential wells and Red Sand and White Sand lakes, Baxter officials said they were concerned about storm water at the proposed auto development and how a septic system would be able to treat it.

The land, in Unorganized Territory, was slated for service by a septic system and Crow Wing County approved a permit to allow the filling of 47,545 square feet, or nearly an acre, of wetland on the property. Baxter noted the development was proposing using a septic system when city sewer and water was just feet away from the nearly 12-acre site.

The city filed an annexation petition with the state Office of Administrative Hearing. Dondelinger filed a response, objecting to the city’s petition.

In a state document on the settlement agreement, the city and Dondelinger were both listed as wishing to settle the contested annexation subject to conditions.

The agreement notes Dondelinger will complete a minor subdivision in the county, subdividing the land into three lots to conform with the city of Baxter’s zoning standards. Dondelinger is also expected to file a subdivision application with the city.

The city is then responsible to process and approve a building permit, conditional use permit and utility hookups.

As part of the agreement, Dondelinger will create a utility easement and reserve a corridor for the possible future extension of Edgewood Drive as a backage road.

Dondelinger agreed to give the city a perpetual right to purchase the corridor at a fair market value.

The project includes a building permit fee, based on construction value, to be about $30,000 to $35,000. The development’s building project is estimated to be $5 million.

The developer will pay for connections to the city’s water and sewer systems. The platting of the property will not require road dedication or park fees as no new lots are being created within the city, the agreement stipulated.

With the agreement, Dondelinger will apply for a conditional use permit for the retail automobile facility. The annexation will be completed if the conditional use permit is granted.

The city is not requiring landscaped “bump out” areas at 10 parking stall intervals in the vehicle display area. With Dondelinger’s petition for annexation, the settlement agreement noted if conditions are met, the contested annexation proceeding will be dismissed and the city will annex the land.

RENEE RICHARDSON, senior reporter, may be reached at 855-5852 or renee.richardson@brainerddispatch.com. Follow on Twitter at www.twitter.com/Dispatchbizbuzz.