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
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/
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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.