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3.0. SR 05-18-1998'ity of River MEMORANDUM TO: FROM: DATE: SUBJECT: Mayor and City Council Steve Ach, City Planne~~ May 18, 1998 Review of Elk River Mall PUD Attachments · Excerpts from original PUD Excerpts from Amendment No. 2 and Amendment No. 3 to the Elk River Plaza Planned Unit Development Agreement · Copies of the R3, R4, C1, C2 and C3 zoning ordinances · Site plan of mall Overview Last month, Living Waters Church requested a conditional use permit to operate a church revival in the Elk River Mall. The church was proposing to utilize the vacant Video Update space on a temporary basis until they could find an alternative site. The City Council raised some concerns regarding the future of the mall and what uses would be most appropriate for the mall and deferred action on the conditional use permit request. Following the Council meeting, I contacted Jack Sheedy who has a direct relationship with operation of the mall and invited both him and representatives from Sherer Brothers to attend the Council meeting to discuss the future of Elk River Mall. PUD Agreement The original planned unit development agreement was signed on the 21st of December, 1984, between the City and Barthel Construction, Inc. The PUD agreement had several sections, one of which related to the types of uses that would be allowed at the mall. The PUD agreement is slightly different from the PUD agreements used today in that it lists both the allowed uses (either permitted or conditional), and also lists specific uses that are not allowed. The agreements today just list those uses which are allowed and if it is not listed, it therefore is not permitted. It is my understanding the PUD 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425 requirement shall be for sanitary sewer laterals, which shall be installed for each parcel of the Development before occupancy of that phase. (02) To be Installed by City or Developer - Certain public' ut ~ties and improve~nts have been installed by the City ave been asses~d. Certain other utilities and vements will ~ installed by Developers.' Before the or Developer/ commence work on any public utilities or improvements, th~ Developers shall file with the City cash, or a letter of,~redit, or other financial .guarantee acceptable to/the City, in an amount equal to that set ~rth in Exhibit F or that required by the City from time time foD"later parcels of the Development. This financial/guarantee shall secure performance of Developer's ltiOn to properly install and pay for improvements .~d by Developers or to secure payment of amounts ~d against the Subject Land for construction of the ~sted improvements and shall not be released until the ~sments.are paid. The Developers shall execute and iver Exhibit F to the City prior to the initiation of ~onstruction activities on any parcel of the Property. / (03) Waterline - In addition to all other easements, the Developers shall grant to the City an easement through the Subject Land for the purpose of a City waterline which will pass through the Development. The precise location of this easement will be at the City's reasonable discretion and the easement will be granted when requested by the City. 8.) Development of Commercial Areas - (01) Commercial Uses - (a) The use of parcels A, B, C, F, and G (as shown on Exhibit B), shall be restricted to those uses which are principal or conditional uses in the C-l, C-2 and C-3 commercial zones, with the following exceptions: Principal uses Not Allowed: 2. 3. 4. 5. 6. 7. 9. 10. 11. Multifamily dwellings Professional offices Business offices and public buildings Hospitals and mental health centers Parking ramps Taverns and hotels Motor vehicle service stations servicing vehicles with more than two (2) axles Auto repair shops Storage facilities Drive-in theaters Outdoor amusement centers conditional Uses Not Allowed: 1.Those conditional uses permitted in the R-4' District. 2. Those principal uses permitted in the R-3' and R-4 Districts- (b) The use of Parcel L shall be restricted to a hardware and related items retail sales store. (02) Ma%nte- - ........ hall orovide evidence of Association - The Deve~o~=~ ~ = intenance of ~atisfactory provision for control and ma commonly owned areas in the parcels jointly used Orcommercial use. If reciprocal easement and designated fOrreements provided prior to issuance of maintenance ag .... :-~-ctor= to the City in its sole ~ermits are un~au~ = .......... 's building = the Developers shall create an u~k_~ ~or the discretion, association before any building permits are ~u=u ~ commercial parcels. Prior to the filing of the owner's association documents or easement and maintenance agree- ments with Sherburne County, they shall be submitted to the City Attorney for review and compliance with this Agreement so as to ensure satisfactory control, ownership, and maintenance. 9.) Assessments - The parties mutually agree that all public improvements installed by the City related to the Development shall be assessed pursuant to the procedures specified in Chapter 429 of Minnesota Statutes. 10.) Park Trail and Pond Dedication - The Developers will contribute an amount equal to ten percent (10%) of the fair market value of all residential land included in the Development to the City's park fund. The fair market value of land will be determined by an independent fee appraiser selected by the City. The ten percent (10%) contribution for each residential phase of the Development shall be paid as a condition to final approval of that phase of the Development and prior to any construction on that phase. 11.) Sidewalks - Concrete sidewalks, in such widths and in such locati--on as r~quired by the City's applicable ordinance in effect at the time of final plat approval, shall be constructed for lands within the Development contemporaneously with the improvement of streets. The City will consider reasonable exceptions to sidewalks as each parcel is presented for approval, and decisions as to said exceptions shall be within the sole discretion of the City. 12.) Stkeet Lights - The Developers agree to provide and the City ~grees to accept a street lighting system for each parcel pursuant to the applicable ordinance and Council policy in effect at the time of the final approval. 5. EXHIBIT D to ELK RIVER PLAZA PLANNED DEVELOPMENT AGREEMENT PHASING AND USE PLAN Phase I: Construct all Buffers as shown on the Landscape Plan The following Parcels may be develOped in any order during Phase I: Parcel A: ~groSs leasable square foot shopping center. Use of Parcel A will be limited to those retail sales and service establishments permitted in the C-l, C-2, and C-3 zoning districts. No business, professional, or other office use will be permitted on Parcel A. No building on Parcel A will exceed 35 feet in height. Provided that the spaces used solely for grocery supermarket purposes, the shopping center may be expanded by 10,000 gross leaseable square feet as depicted in Exhibit B. Access to Parcel A will be via Freeport Avenue and the private drive to be constructed between Parcel A and Parcels B and C. Documents to permanently establish the existence and maintenance of said private drive shall be received and approved by the City Attorney and shall be recorded. This private drive must be completed prior to occupancy of Parcel A. Parking on Parcel A shall include 329 spaces located as shown on the Site Plan. No building shall be occupied until the parking facilities shown have been completed. Parcel B: 5,000 square foot restaurant. The restaurant on Parcel B shall not exceed 35 feet in height. Access to Parcel B will be via Freeport Avenue and the private drive to be constructed between Parcel A and Parcels B and C. Documents to permanently establish the existence and maintenance of said private drive shall be received and approved by the City Attorney and shall be recorded. This private drive must be completed prior to occupancy of Parcel B. Parking on Parcel B shall include 45 spaces Parcel C: Parcel D: located as shown on the Site Plan. No building shall be occupied until the parking facilities shown have been completed. 2,000 square foot bank facility. The bank on Parcel C shall not exceed 35 feet in height. Access to Parcel C will be via Freeport Avenue and the private drive to be constructed between Parcel A and Parcels B and C. Documents to permanently establish the existence and maintenance of said private drive shall be received and-approved by the City Attorney and shall be recorded. The private drive must be completed prior to occupancy of Parcel C. Parking on Parcel C shall include 30 spaces located as shown on the Site Plan. No building shall be occupied until the parking facilities shown have been completed. Housing units allowed pursuant to R-3 zoning but not to exceed 128 housing units. All housing units which are situated proximate to the westerly property line shall be single-family houses, townhouses, duplexes or four- plexes, and no building shall contain more than 12 housin~ units. No building on Parcel D shall exceed 45 feet in height. Access to parcel D shall be via Freeport Avenue and private drives and maintenance of said private drives shall be received and approved by the City Attorney and shall be recorded. No continuous private drive shall be allowed along the westerly property line. The private drives must be completed prior to occupancy of Parcel D. Each housing unit in Parcel D shall have one enclosed parking space and one additional parking space as shown on the Site Plan. No building on Parcel D shall be occupied until the parking facilities shall have been completed. Any multiple-family dwellings which would be constructed on Parcel D would have to be constructed on the easterly most portion of Parcel D and immediately adjacent to Freeport Avenue. Parcel D shall be developed in such a fashion that either the entire low density strip on the western border of parcel D be // / / / Parcel E: Parcel F: constructed, or in the event that the parcel is phased, that the entire phase from west to east be constructed rather than simply having apartment buildings being constructed first, and the lower density dwellings be constructed later on in the development process- 60 housing units. All housing units on Parcel E shall be constructed in one building as shown on the site Plan. This building shall not exceed 50 feet in height. Access to Parcel E will be via the private drive shown on the site Plan. Documents to permanently establish the existence and maintenance of said private drive shall be received and approved by the City Attorney and shall be recorded. The private drive must be completed prior to occupancy of Parcel E. Ail housing units in Parcel E shall have one covered parking space and one additional parking space as shown on the Site Plan. No housing units in Parcel E shall be occupied until the required access and parking facilities shown have been completed. Retail establishments permitted in the C-l, C-2, C-3 zoning districts shall be permitted, but only to the extent that the City Council determines that the proposed uses and buildings are consistent with the downtown redevelop- ment plan and all other plans and ordinances referred to in Section 2 hereof and not to exceed a total building size of 45,000 Gr°ss leasable square feet for all buildings constructed on Parcel F. The following uses shall be prohibited: Professional or other office uses; taverns; truck stops; new or used car or implement sales; auto repair shops; enclosed storage and warehousing; public garage; drive-in theaters; outdoor amusement and recreation centers; liquor store and truck terminal. No building shall exceed 35 feet in height. Access to Parcel F shall be via private drives approved by the City Council. Documents to permanently establish the existence and maintenance of said private drives shall be received and approved by the Phase II: City Attorney and shall be recorded. The private drives must be completed prior to the occupancy of Parcels F and L. Parking spaces on Parcels F and L shall be as required by city ordinances in effect at the time of the City Council review of site and building plans for the Parcel. No building shall be occupied until the parking facilities shown have been completed. Parcel L: Hardware and related items retail sales store not to exceed 8,000 square feet. If, and only if at least 50 units of housing have been constructed and occupied on either of Parcels D and E and the shopping center on Parcel A is constructed and 90% occupied, the shopping center on Parcel A may be expanded into Parcel G by an additional 42,000 gross leasable square feet. Uses on Parcels A and G shall be as set forth above for Phase II, Parcel A. Access to the shopping center expansion on Parcels A and G shall be via an additional private drive off Freeport Avenue and a "right on/right-off" access drive to Highway 169, as shown on the Site Plan. Documents to permanently establish the existence and maintenance of said private drive shall be received and approved by the City Attorney and shall be recorded. The private drive must be completed prior to occupancy of Parcel G. Parking for the Shopping Center expansion shall include 220 spaces located as shown on the Site Plan. The Shopping Center expansion shall not be occupied until the access and parking facilities shown on the Site Plan have been completed. 5873- AMENDMENT NO. 2 tO ELK RIVER PLAZA DEVELOPMENT AGREEMENT CITY OF ELK RIVER, SHERBURNE COUNTY, MINNESOTA THIS AMENDMENT NO. 2 is made as of the 16thday of ~x~x-Sn9 March, 1987, by and between the CITY OF ELK RIVER, Sherburne County, Minnesota (the City), and ELK RIVER SHOPPING CENTER COMPANY, a Minnesota partnership, Ninth Avenue Northeast and Mississippi River Boulevard, Minneapolis, Minnesota 55413; and BARTHEL CONSTRUCTION, INC., 21370 John Milless Drive, Rogers, Minnesota 55374; and KENNETH A. BARTHEL, 21370 John Milless Drive, Rogers, Minnesota 55374 (collectively, the Developers). W I T N E S S E T H: WHEREAS, on December 24, 1984, the parties hereto entered into Elk River Plaza Planned Development Agreement; and WHEREAS, during 1985, the Elk River City Council approved the further subdivisions of the Property, said subdivision known as Elk River Plaza Second Addition and Presidential Estates; and WHEREAS, on October 6, 1986, the Elk River City Council approved an amendment to permit the substitution of an office building for sixty (60) units of multi-family housing on Lot 3, Block 1, Elk River Plaza Second Addition; and WHEREAS, on March 16 , 1987, the City Council appr'oved an expansion of the Elk River Plaza Shopping Center, as originally authorized; NOW, THEREFORE, it is hereby agreed by and between the parties here as follows: 1.) The Elk River Plaza Planned Development Agreement is hereby amended to allow the construction of a maximum sixteen thousand (16,000) square foot single-story office/retail building with twenty percent (20%) green area, excluding the following uses: (01) All-night convenience stores; (02) Gas service stations; (03) (04) (05) Indoor and outdoor recreational facilities; Parking ramps; Taverns and bars; (06) Hotels; (07) Laundromats; (08) Theatres; (09) Adult book stores; (10) Restaurants; (11) Department stores. provided that a site plan be submitted to the Planning Commission and Council for review and approval and that signage lettering be consistent with other signage within the Elk River Plaza Planned Development. 2.) The final landscaping of building plans for each lot in Elk River Plaza and Elk River Plaza Second Addition must be submitted for approval by the Elk River City Engineer prior to any construction on any part thereof. 3.) The words, phrases, terms, and conditions used herein shall be interpreted the same as those used in the Elk River Plaza Planned Development Agreement. 4.) Ail other terms and conditions of the Elk River Plaza Planned Development Agreement, as amended, shall remain in full force and effect and shall be binding upon the parties hereto, except to the extent clearly inconsistent with the terms and conditions of this Amendment No. 2. IN WITNESS WHEREOF, the parties have caused this Amendment No. 2 to be duly executed in their names and on their behalf on or as of the date first above written. ATTE ST: ~XO~X~kxx~k~R~ Patrick Klaers Its: Clerk-Administrator CITY OF ELK RIVER: By: ~-d~-~ ~3~." /~~.~ Estelle Gunkel Its: Mayor ~ENDMENT NO. 3 tO ELK RIVER PLAZA DEVELOPMENT AGREE~IENT CITY OF ELK RIVER, SHEKBURNE COUNTY, MINNESOTA THIS AMENDMENT NO. 3 is made effective the21st day of September , 1987, b~ and between the CITY OF ELK RIVER, Sherburne County, Minnesota (the City), and ELK RIVER SHOPPING CENTER COMPANY, a Minnesota partnership, Ninth Avenue Northeast and Mississippi River Boulevard, Minneapolis, Minnesota 55413; and BARTHEL CONSTRUCTION, INC., 21370 John Milless Drive, Rogers, Minnesota 55374; and KENNETH A. BARTHEL, 21370 John Milless Drive, Rogers, Minnesota 55374 (collectively, the Developers). W I TN E S S E TH: WHEREAS, on December 24, 1984, the parties hereto entered into Elk River Plaza Planned Development.Agreement, which agreement was amended by Amendment No. 1 effective December 31, 1985, and by Amendment No. 2, effective ~March 1~ 1987; and WHEREAS, the City Council on September 21, 1987, approved the Replat of Lot 3, Block 1 of'Elk River Plaza, Second Addition as Elk River Plaza, Third Addition. WHEREAS, on September 21, 1987, the Elk River City Council approved an amendment to the Elk River Plaza Planned Development Agreement to permit the development of Elk River Plaza Third Addition by the placement of the following improvements on the property: a 2,900 square foot office/retail building on Lot 1, Block 1, Elk River Plaza Third Addition; the placement of a 15,000 square foot retail building on Lot 2, Block 1, Elk River Plaza Third Addition, and the placement of a 3,200 square foot car wash building on Lot 3, Block 1, Elk River Plaza Third Addition; and NOW, THEREFORE, it is hereby agreed by and between the parties hereto as follows: 1.) The Elk River Plaza Planned Development Agreement is hereby amended to allow the construction of the following improvements: (01) A 2,900 square foot office/retail building to be located on Lot 1, Block 1, Elk River Plaza Third Addition; (02) A 15,000 square foot retail building on Lot 2, Block 1, Elk River Plaza Third Addition; and (03) A 3,200 square foot car wash building on Lot 3, Block 1, Elk River Plaza Third Addition. 2.) The following uses subject to the conditions set forth below shall not be allowed as part of the development authorized in paragraph 1 of this Amendment No. 3: (01) All-night convenience stores; (02) (03) Gas service stations; Indoor and outdoor recreational facilities; (04) Parking ramps; (05) Taverns and bars; (06) Hotels; (07) Laundromats; (08) Theaters; (09) Adult book stores; (10) Restaurants; (11) Department stores. 3.) It is further a condition of the approval of the authorized development that the same shall be completed in conformance with the attached site plan approved by the Planning Commission and City Council and that all signage lettering shall be consistent with other signage within the Elk River Plaza Planned Development. 4.) The words, phrases, terms, and conditions used herein shall be interpreted the same as those used in the Elk River Plaza Planned Developmen~ Agreement. 5.) All other terms and conditions of the Elk River Plaza Planned Development Agreement, as amended, shall remain in full force and effect and shall be binding upon the parties hereto, except to the extent clearly inconsistent with the terms and conditions of this Amendment No. 3. vi. Public parks, playgrounds and open space vii. Permitted home occupations in single family dwellings B. Accessory Uses i. Public shelters and essential services ii. Garages and sheds iii. Private recreational facilities C. Conditional Uses i. Conditional home occupations in single family dwellings ii. iii. iv. Metal skinned buildings Institutional usesf, L,~' Governmental buildings and facilities v. Licensed daycare facilities with 13 or more children in institutional buildings vi. Zero lot line development R-3 - Townhouses and Multiple Residential District STATEMENT OF PURPOSE: This District is intended to provide a residential area which allows a broad range of housing types (townhouses, apartments, etc.) of medium density multifamily units in areas served by public sanitary sewer, storm sewer, and municipal water. PUD recommended. A. Permitted Uses i. Single family dwelling ii. Two family dwellings iii. Townhouses and multiple family dwellings (12 units per structure maximum) iv. Model homes in compliance with Section 900.20, Subsection 13 v. Licensed daycare facilities for 16 or fewer children vi. Public parks, playgrounds and open space 9.26 vii. Permitted home occupations in single family dwellings B. Accessoz~ Uses i. Public shelters and essential services ii. Garages and sheds iii. Private recreational facilities C. Conditional Uses i. Mobile home parks ii. Metal skinned buildings iii. Licensed daycare facilities for 17 or more children iv. Governmental buildings and facilities v. Institutional uses ~ vi. Boarding house vii. Mini Storage viii.Conditional home occupations in single family dwellings ix. Zero lot line development 9. R-4 - General Multiple Family Residential District STATEMENT OF PURPOSE: This District is intended to create, preserve, and enhance areas for multifamily use of higher densities for both permanent and transient families, in areas served by public sanitary sewer, storm sewer, and municipal water, with good accessibility to thoroughfares, public community centers, libraries, shopping centers and employment centers, and where such development fits the Growth Management Plan. PUD Recommended. A. Permitted Uses i. Single family dwellings ii. Two family dwellings iii. Townhouse dwelling (12 unit per structure maximum) iv. Multiple family dwellings 9.27 v. Model homes in compliance with Section 900.20, Subsection 13. vi. Licensed daycare facilities for 16 or fewer children vii. Public parks, playgrounds and open space B. Accessory Uses i. Public shelters and essential services ii. Garages and sheds iii. Private recreational facilities C. Conditional Uses i. Outpatient health care facilities ii. Boarding houses 6/1~i. Institutional uses ~ iv. Licensed daycare facilities for 17 or more children v. Governmental buildings and facilities vi. Mini Storage vii. Zero lot line development 10. C-1 - Central Business District STATEMENT OF PURPOSE: The Central Business District (CBD) is appropriate for retail, service, and commercial uses to serve the shopping and service needs of the residents and surrounding community as distinguished from highway service uses. The CBD is intended to encourage uses and designs that are consistent with the historic character of the CBD. Emphasis should be placed on pedestrian access and design standards with flexibility to preserve the historic character of the CBD. Uses should be designed to eliminate any nuisance or incompatibility with surrounding uses. A. Permitted Uses i. Governmental, business and professional offices ii. Financial institutions iii. Retail stores and shops 9.28 vi. Hotels vii. Restaurants, viii. Public parks ix. Sale of firearms Accessory Uses Personal service Establishments Outpatient health care facilities (Class I) i. Signs as permitted in Section 900.22 ii. Off-street parking facilities iii. Off-street loading facilities iv. Telephone booths v. Private recreational facilities vi. Public shelters and essential services Conditional Uses i. Nonprofit clubs, lodges or halls i ij~_L~ e~_D~_c~ a r~-~a c i 1 i t i e s ~-i. Institutional uses~ iv. Motor vehicle service stations v. Commercial parking lots and ramps vi. Residential dwellings (R-4 standards) vii. On-Sale liquor establishments viii.Commercial recreational facilities ix. Convenience store x. Funeral parlor xi. Restaurants, (Class II) xii. Governmental buildings and facilities xiii.Apartments subordinate to the principal use 9.29 xiv. Produce Markets xv. Therapeutic massage and sauna establishments 11. C-2 - Office District STATEMENT OF PURPOSE: The C-2 Office District is intended to buffer residential districts from arterial streets or from commercial districts and to provide a district which is compatible with and may reasonably adjoin residential districts. The Office District provides for the location and development of offices and other service and light commercial uses which are subject to more restrictive controls. A. Permitted Uses i. Governmental, business and professional offices ii. Outpatient health care facilities iii. Personal service establishments iv. Public parks B. Accessory Uses i. Signs as permitted in Section 900.22 ii. Off-street parking facilities iii. Off-street loading facilities iv. Telephone booths v. Private recreational facilities vi. Public shelters and essential services C. Conditional Uses i. Licensed daycare facilities ~ ii. Institutional uses~ iv. Financial institutions v. Funeral parlor vi. Boarding house vii. Governmental buildings and facilities 9.30 viii. Therapeutic massage and sauna establishments 12. C-3 - Highway Commercial District STATEMENT OF PURPOSE: The purpose of the C-3 highway commercial district is to recognize the need for commercial establishments on or serving with immediate access to major highways. Permitted land uses should take advantage of the highway access in a manner which other business districts are not afforded. In addition to retail and commercial uses, quasi-industrial and wholesale enterprises that do not meet an industrial setting and have considerable customer contact are acceptable in the highway commercial district. A. Permitted Uses i. Governmental, business and professional offices ii. Retail shops and stores iii. Personal service establishments iv. Nurseries, produce markets, and garden centers which may include outdoor display v. Convenience stores vi. Public parks vii. Financial Institutions viii. Sale of firearms B. Accessory Uses i. Signs as are permitted in Section 900.22 ii. Off-street parking facilities iii. Off-street loading facilities iv. Telephone booths v. Private recreational facilities vi. Public shelters and essential services C. Conditional Uses i. Enclosed light manufacturing with related retail sales ii. Car, RV and marine sales 9.31 iii. Nonprofit clubs, lodges, or halls iv. Licensed daycare facilities <V..~ Institutional_ use~~%~ vi. ~E-q~-~~a--l~businesses vii. Commercial recreational facilities viii.Auto repair shops ix. Shopping centers x. 0n-sale liquor establishments xi. Governmental buildings and facilities xii. Veterinary clinics xiii. Car Washes xiv. Restaurants (Class II) xv. Motor vehicle service stations xvi. Motor vehicle specialty shops xvii.Therapeutic massage and sauna establishments xviii.Lumber Yard xix. Pawnshops (250 foot setback from any residential zone and 500 foot setback from schools, parks, daycare centers, churches and other pawnshops, measured from the property line) xx. Hotels and motels xxi. Restaurants (Class I) 13. C4 - Neighborhood Commercial STATEMENT OF PURPOSE: The purpose of the C4-Neighborhood Commercial district is to provide land use opportunities to attract convenience retail stores, and personal service establishments. It is intended that this district primarily serves surrounding residential neighborhoods and businesses within the immediate area. Neighborhood Commercial districts shall be located adjacent to collector or arterial streets so that traffic.does not impact local streets. In order for development to occur within this district, public sanitary sewer, storm sewer, and municipal water must be available and hooked up in order to occupy the particular business. 9.32 ELK RIVER CITY COUNCIL 13065 Orono Parkway Elk River, MN 55330 Council Members: A conflict in my schedule precludes my attending the 5:00 P.M. meeting Monday May 18, 1998 to discuss the Elk River Mall. Please accept these written thoughts and the presence of Jack Sheedy and Larry Leitschuh in my absence. USES During 1988 and 1989 there were several meetings between representatives of the mall ownership and representatives of the Elk River Administration. The meetings were culminated at the City Council Meeting of October 16, 1989 when the Council considered a motion to amend the PUD Agreement to allow business and professional offices at the Elk River Mall. The Amendment was to allow "not to exceed 10,000 square feet for a four year period" with all restrictions lif[ed after four years. The motion passed 4 - 0. Subsequently a chiropractic office, an insurance office, a tax office, a dance studio and a tailor shop have leased space at the mall as a result of this amendment. We have presented leasing opportunities to numerous business and office users, but we have not been successful with all our proposals. MARKETING Our Company has retained a Real Estate Management and Leasing Company (Jack Sheedy & Associates, Inc.) with representatives having over 60 years of real estate experience. Since Hagen vacated the County Market space, the Company has made contacts with the following organizations and businesses concerning the leasing of space: Burlington Coat Factory Burlington, New Jersey Cherokee Equipment % Rademacher Companies Best Buy Company Eden Prairie, MN Astrup Drug Austin, MN Circuit City Stores, Inc. Richmond, Virginia Rick Wondra of Wayzata Boat Works Rick Foster Health Club Kohl's Department Store Menomonee Falls, Wisconsin Frank's Nursery Detroit, Michigan Marshall's Department Store Kansas City', Missouri Minnesota Fabrics Bloomington, MN T.J. Maxx Framingham, Mass. Chuck Ripka (Local) Roller Rink Northern Hydraulics Burnsville, MN Little Ceasars Nick Bandescu Minnesota Sports Federation A1 Mundt Living Waters Church Bob Pullar River of Life Evangelical Free Church Jim Schroer TLC & Company, Inc. Daycare Sports Bar/Restaurant Jack Ditter New China Caf6 The Gym (Health Center) JoAnn Fabrics UB. Tan (Tanning Parlor) Medical Health Center Teachers Credit Union Jacob's Trading Sylvester's Fashion Outlet Blaine, MN Old Country Buffet Buffet's Inc. Eden Prairie, MN Walgreen's Drug Deerfield, Illinois Kevin Heikes Furniture Store Hutchinson, MN Michael's Stores Irving, Texas Elk River School District Main Street Music Sean McElhone Western Staff Services Elk River, MN Ducat Furniture Cambridge, MN Medical Service Group Northco Broadway Pizza U.S. Premis (Training Center) Gene Eckstein (Billards) ECM Publishing Dialysis Center Children's Dental Office Holiday Sports Hearing Aid Cemer Professional Kanste Snyder Drug Homeplace, Inc. Paper Warehouse LifeTime Fitness During this period we were very close to a deal the JoAnn Fabrics, but their requirements for improvements to the County Market space combined with the rent that they were willing to pay, made the lease proposals unacceptable to both parties. At that time Mr. Sheedy approached the Economic Development Department of the City and requested TIF assistance for the store conversion to rentable space. Mr. Sheedy was told this was not possible for this kind of activity, even though we knew other communities were using these funds. We were also told it would be "unfair" competition to local retailers. The deal went away! CITIZENSHIP When we built this mall in the mid eighties, we were required by the administration then in place to orient the mall away from the highway. We all know that that was a mistake and future retail developers were not required to do the same. Yet, we have remained good stewards to the community of Elk River. We have maintained our property in first class fashion, when most would have deferred maintenance to save money. We have only rented to tenants that provide a contribution to the community, not sleazy operators or non-family oriented businesses. We have abided by all our agreements with the City, the banks and our tenants. In short, we have been good solid citizens to the Elk River community, without any financial return. Our lease proposals have been at below market lease rates ($4.50 to $6.50 net). We have even overlooked, in several cases, the financial credibility of the prospects and have been burned in our efforts to add tenants to the mall. And during this period we have not been collecting rent for the County Market space and are presently not collecting rent on the Pamida space. I am disappointed by the notion that we have not tried to succeed. Rather we have gone above and beyond to maintain and enhance a property disadvantaged from its beginning. We have also tried to do this only once asking for T.I.F. assistance. CONCERNS We have recently completed long and complicated negotiations with the purchasers of the GTI theaters. Once again, we have done what is in the best interest of the community and tried to limit our losses along the way. Next we must move forward on strengthening the North half of the mall. We need support and understanding from the Community of Elk River, not new barriers erected and uninformed second guessing as to our efforts to stem the ongoing losses. I am concerned about rumors that other potential retail developers may be receiving government aid on new projects while we continue to struggle to fill our space at below market rates. If these rumors are true, they provide the unfair competition mentioned above. We, the pioneers in the Elk River Mall business, could use some type of assistance to leverage our ongoing investment and efforts to correct the physical limitations of the Mall, and to reposition it for the success it de'serves. Mr. Sheedy will be available to discuss this letter and will speak on my behalf, answering any of the Marketing and Use questions. Highest Regards, Peter L. Scherer City Council Minutes October 16, 1989 Page 5 5.5 00UNCILMEMBER KROPUENSKE MOVED TO DENY THE REQUEST FOR ANEXTENSION OF PRELIMINARY PLAT FOR'REPLAT ~5, BARRINGTON PLACE PUD REQUESTED BY JAMES PETERSON AND T~E 'FIRST NATIONAL BANK~' COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CRkRRIED'4-0. " Consider Conditional Use Permit to Amend the Elk River Plaza Planned Unit Development Agreement to Allow Professional and Business Offices in the Elk River Mall/Public Hearin8 Steve Rohlf, Building and Zoning Administrator, stated that Equitech, the current mall managers of the Elk River Mall, have requested a conditional use permit to amend the Elk River Plaza Planned Unit Development Agreement to allow Professional and business offices in the Elk River Mall. He indicated that the amendment would be to Lot 4, Block 2, Elk River Plaza 1st Addition, and also Lots 1 and 2, Elk River Plaza 2nd Addition, which include County Market, the theater, Pamida, and the remainder of the Mall. Steve Rohlf indicated that the Planning Commission addressed this item and reviewed the seven standards necessary to approve a conditional use. Peter K~mball, Planning Commission Representative, indicated that the Planning Commission noted that~ the Elk River Mall is the only commercial area in Elk River which prohibits the use of business and professional offices, and further that this could not ~ontinue to be justified. Representative Kimball noted that the public hearing, which the Planning Commission held, carried testimony for both sides of the issue. Mr. Kimball indicated that the Planning Commission's recommendation was to allow 10% of the area leasable space which would include County Market to Pamida and everything in between as offices, and further that after three years all restrictions on offices would be lifted. Steve Rohlf, Building and Zoning Administrator, indicated that one of the original reasons for eliminating professional and business offices in the Elk River Mall was to assure that these types of uses would remain in the downtown area and also because these types of uses were not viewed as compatible with the shopping center. Vice Mayor Schuldt opended the public hearing. Mr. Jack that he 10% of period. Sheedy, the Regional Director of Equitech Properties, stated does support the Planning Commission recommendation of allowing the leasable area to be leased as office space for a three year Ed Orwell, of Jean's Hallmark in the Elk River Mall, indicated that he would prefer that the Council keep the Mall area as a retail center. Mr. Orwell stated that if the City Council is going to consider approval of the request, he would also like the Council to consider the following: 1. That County Market square footage not be included in the total square footage amount being considered for leasable office space. That the movie theater and Pamida not be included when considering the square footage for leasable office space. He indicated that both of these are on separate parcels and further that they are not attached to the mall. City Council Minutes October 16, 1989 Page 6 3. That a minimum of five years or more be considered as opposed to three years. Steve Rohlf indicated that County Market up to the theaters is on one lot and the theater and Pamida are both on separate lots. However, the lots all these businesses are located on are part of the request. Donna their they mall. will Market should be included allowed for office space. Gallagher, representing Equitec Properties, stated that it is not intention to put all professionals in the Elk River Mall, and that have had only one request from a Chiropractor to be located in the She further indicated that County Market is opening a deli which open into the mall area and therefore, she indicated that County when considering the total square footage Cindy Hanlon, of the Elk River Mall Hallmark, indicated that Equitec Properties is the Mall's third manager and their concern is if another manager should take over Equitec's position, they may feel differently than Equitec and consider putting more professional office space in the mall than Equitec is planning to do. Mr. Robert Peterson, new owner of Dick's Main Tap, indicated that there is a possibility of the downtown area being redeveloped and thereby creating more office space. There being no further comments from the public, Vice Mayor Schuldt closed the public hearing. The Council discussed the preferrable amount of square footage to be allowed for office space in the Elk River Mall. COUNCILMEMBER KROPUENSKE MOVED TO ALLOW A CONDITIONAL USE PERMIT TO AMERrD T~ ELK RIVER PLANNED UNIT DEVELOPMENT AGREEMENT TO ALLOW BUSINESS AND PROFESSIONAL OFFICES' ON LOT 4, BLOCK 2, ELK RIVER PLAZA FIRST ADDITION AND LOTS 1 AND 2, ELK RIVER PLAZA SECOND ADDITION, NOT TO EXCEED 10,000 SQUARE FEET FOR A FOUR YEAR PERIOD AND THAT THE RESTRICTIONS ON OFFICES BE ELIMINATED AFTER THE FOUR YEAR PERIOD. COUNCILMEMBER HOLMGRER~ SECONDED THE MOTION. Vice Mayor Schuldt stated that the reasoning for not allowing professional and business offices in the Mall was to help the downtown area and the Mall area. Vice Mayor Schuldt further stated that with the influx of people coming into the Elk River area he felt there would be ample customers for the businesses in the Mall and further that in the years to come there will be ample businesses to fill the Mall and the downtown area. He stated that due to the compromise and the square footage made by,the Council he would be in favor of the motion. THE MOTION CARRIED 4-0. City Council Minutes October 16, 1989 Page 7 5.6 Consider Conditional Use Permit Triple S Investment/P.H. Steve Rohlf, Building and Zoning Administrator stated that Triple ~ Investment is requesting a conditional use permit to amend the Elk River Planned Unit Development Agreement to allow professional and business offices on Lot 5, Block 1 of the Elk River Plaza Second Addition. Mr. Rohlf indicated that currently the Big Wheel Auto is located within the building. Mr. Rohlf stated that the owners of the building indicated that they are having trouble renting the spaces which are not occupied by the Big Wheel Store. Mr. Rohlf further indicated that the Planning Commission reviewed the matter according to the seven standards for granting a conditional use permit and recommended approval. Vice Mayor Schuldt opened the public hearing. There being no one for or against the matter, Vice Mayor Schuldt closed the public hearing. COUNCILMEM~ER KROPUENSKE MOVED TO APPROVE THE CONDITIONAL USE PERMIT REQUESTED BY TRIPLE S INVESTMENT TO ALLOW PROFESSIONAL AND BUSINESS OFFICES ON LOT 5, BLOCK 1, OF THE ~ RIVER PLAZA SECOND ADDITION. COUNCII~ER DOBEL SECONDED THE MOTION. THE MOTION CARRIED 4-0. 5.7 Consider Administrative Subdivision Request by Tim Smith/P.H. Steve Bjork, Zoning Assistant, stated that Tim Smith is requesting an administrative subdivision to create four lots in the R-lb Zone. He further noted that Mr. Smith was before the Council in June requesting a similar subdivision and that in order to grant the subdivision, a variance would have had to be granted from the lot width requirement in the R-lb zone. He noted that the Council denied the lot width variance and therefore, the administrative subdivision was not approved. Since that time the applicant has obtained additional frontage on County Road 35 to meet the lot width requirement for all lots being proposed on County Road 35. Mr. Bjork noted that staff has a concern with Lot C. He indicated that it appears that Lot C may be unbuildable and, therefore, staff will be recommending a perc test on this lot prior to the administrative subdivision being recorded with the County to assure that the lot being created will be a buildable lot. Vice Mayor Schuldt opened the public hearing. There being no one for or against the matter, Vice Mayor Schuldt closed the public hearing. COUNCILMFJtBER HOLMGREN MOVED TO APPROVE THE ADMINISTRATIVE SUBDIVISION P, EQEU~TED BY TIM SMITH TO SUBDIVIDE TWO EXISTING INTO FOUR LOTS WITH %"HE FOLLOWING STIPULATIONS: THAT A~ FUTURE DEVELOPM~ OF LOT D WILL REQUIRE IMPRO~NT TO 190TH AVENUE NW. THAT THE APPLICANT SHALL PROVIDE THE CITY WITH A PERC TEST FOR LOT C AND THAT LOT C SHALL HAVE A LOCATION FOR A BUILDING SITE AND ON SITE SEWAGE DISPOSAL SYSTEM. THAT THE APPLICANT MUST RECEIVE APPROVAL FROM THE COUNTY FOR ALL PROPOSED DRIVEWAYS ONTO COUNTY ROAD 35.