Baldwin Township is a small but growing community in central Minnesota that, according to its website, has retained its “rural identity” as home to a little more than 7,000 residents.

It also is home to a decadeslong debate over boundaries, growth, sewers and taxes. Baldwin Township aspires to be a city amid fears it might otherwise lose a third of its land to the neighboring city of Princeton.

Officials on both sides of the border have accused the other side of misinformation. Princeton officials say the city won’t annex the township land, but Baldwin officials accuse the city of making covert efforts to do so in court. Meanwhile, Princeton officials accuse Baldwin Township officials of misleading residents about the true effects of annexation or incorporation as an independent city.

Baldwin Township Board Supervisor Jay Swanson said making the township into its own city will protect the residents’ way of life: houses on several-acre lots, open nature and neighbors barely in view.

“They want to see the rural character maintained,” Swanson said.

But Princeton Mayor Thom Walker questioned that. He said Baldwin’s reliance on septic tanks poses a threat to the city’s underground water supply. For property owners in the annexation area, Walker said they could see increased property values as Princeton allows for higher-density buildings and has a sewer system.

“We think that this is a legitimate spot for the city boundaries to end,” Walker said about the land the city could possibly acquire.

Princeton has annexed some township land in the past, but the parcels were smaller and the changes were requested by property owners. In 2021, the city studied the larger annexation idea and, at a meeting at the time, Walker said: “If Baldwin Township was truly wanting to be Baldwin City, they wouldn’t have parked all of their businesses right on our doorsteps. There is a reason why they are there because it’s cheaper and they wanted to be connected to the city of Princeton.”

An administrative law judge is weighing Baldwin Township’s request to incorporate as a city, and if so, what its boundaries should be.

The public comment period ended in late March, and the city and township must make their final comments by April 19, with the ruling to follow within 90 days, according to Kendra Schmit, the Office of Administrative Hearings spokesperson

Baldwin Township has had incorporation discussions and fears over annexation, according to Swanson, for as long as the 15 years he has been a town board supervisor.

The anxiety has real consequences for the township, Swanson said. Losing a third of the township and the revenue that comes with it could make it harder to pay back loans. The area in question includes Baldwin’s business district and local park, as well as around 900 homes and 2,500 people.

Baldwin Fire Chief and Town Board Supervisor Scott Case said annexation would shrink the township tax base and hurt services.

“All that tax money, which we have based our budgets on for the whole township, would go to the city of Princeton,” said Case, who also noted township residents might pay higher property taxes if they become part of Princeton.

Princeton’s push to gather more land into the city, meanwhile, is motivated by the effort to increase opportunities for development and ease risks associated with Baldwin Township’s septic tanks, according to the mayor.

Walker said Baldwin’s rural design stifles development near the city’s southern border because property owners can’t build higher-density buildings like apartments.

The rural reliance on septic tanks also worries Princeton officials who are concerned about leaks affecting the city’s underground water supply. If the city absorbs parts of Baldwin Township, properties now using septic tanks would be added to the Princeton sewer system on an “as requested and as needed” basis, according to Walker.

While Walker agreed residents may see an increase in their taxes, he added Baldwin residents also should expect increased taxes if the township becomes its own city.

Princeton City Administrator Michele McPherson said cities have to offer more services than townships, such as snow plowing and street maintenance, to abide by state laws, which increases costs.

Elizabeth Wefel, a lawyer with the firm Flaherty & Hood and annexation lobbyist for the Coalition of Greater Minnesota Cities, said the judge will consider the township’s available housing and projected growth while weighing the request to incorporate as a city. Other factors like environmental risks, sewer services, intended land use and the local government setup also will play a role in the decision, Wefel added.

Baldwin Township officials say Princeton has misled the public about its annexation goals by simultaneously saying there were no plans for annexation in public while calling for annexation in court.

“Why are we playing games here? I really don’t understand what’s going on,” Swanson said.

Meanwhile, the mayor of Princeton says the township officials have stirred up concerns.

“[Residents] would not have those concerns if not for the Baldwin Township supervisors sending out letters and making false claims about what would happen if they were part of the city,” Walker said.

Case, who lives in the potential annexation area, said he can only hope the judge favors keeping the Princeton-Baldwin border as is.

“The fact that we feel a sense of community of Baldwin is part of the thing that’s driving us,” Case said. “I would like [Baldwin to incorporate], but that is up to the administrative law judge.”

Jack O’Connor is a University of Minnesota student reporter on assignment for Star Tribune.