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6.9. SR 10-20-2003Item # 6.9, MEMORANDUM TO: FROM: DATE: SUBJECT: Mayor and City Council Michele McPherso ,~Director of Planning October 20, 2003 Case No. CU 03-27 Request by Karla Donner for Interim Use Permit for Fitness Facility Request The applicant requests that the City Council consider an Interim Use Permit to allow a fitness facility in the Business Park District. Attachments · Location Map · Applicant's Narrative · Site Plan · Floor Han · Permitted and Conditional Uses - Business Park District · Draft September 8, 2003 EDA Minutes Location Great River Energy Industrial Building - Elk River Business Park 17834 Industrial Cirde Zoning/Land Use BP, Business Park District / LI, Light Industrial Memo to Mayor and City Council/CU 03-27 October 20, 2003 Page 2 Overview The applicant is proposing to lease 5,000 square feet within the Great River Energy industrial building located within the Elk River Business Park south of Home Depot for a 24/7 fitness center. Fitness centers are not a permitted or a conditional use when the zoning is Business Park and the underlying land use is Light Industrial. They are, however, a conditional use if the zoning is Business Park and the underlying land use is Highway Commercial. As the Commission is aware, this scenario does not exist within the Business Park Zoning Districts scattered throughout the City. In order for this use to be considered, we have determined that it could be allowed as an Interim Use, provided there is an end date and it does not create adverse impacts to adjacent uses. This process was used to allow the gynmastics facility that is also located within this building. Analysis Fitness centers typically are located in commercial areas; hence the provision in the Business Park District to allow fitness centers when the underlying land use is Highway Business. The Commission has in the past discussed the purpose of the Business Park District, which is, of course, to attract higher paying industrial jobs. If the Interim Use Permit is granted, the fitness center will occupy space that could have potentially occupied by an industrial or manufacturing companies providing jobs consistent with the goals of the Business Park District. As with the gymnastics facility, this use is neither compatible nor consistent with the goals of the Business Park District. Staff would therefore, recommend against granting approval of the Interim Use Permit to locate the fitness center within the Business Park District. An alternative to the Interim Use Permit request, considering the types of uses the property owner desires to locate within the building, would be to rezone the northerly portion of the Business Park area to Highway Commercial and to re-guide it as Highway Business. This would resolve the conflicts that the owner and the City are having with the types of tenants the owner is attempting to locate within the building. Economic Development Authority Review This request was reviewed by the Economic Development Authority at their September 8, 2003 meeting. The Authority recommended denial of the interim use, but did not agree with staff's recommendation that the owner consider a land use and zone change for the north half of the business park area. Planning Commission Action At the September 23, 2003 meeting, the applicants were in attendance to speak to the issue of the interim use. They requested that a period of five years be allowed. Several Planning Commissioners spoke regarding the "depressed" industrial market and felt that this would allow the owner to use the building without permanent impact to the business park. S:kPLANNING\Case Files\2003\CU 03-27 Donner\ 10-20 CC memo.doc Memo to Mayor and City Council/CU 03-27 October 20, 2003 Page 3 The Planning Commission voted 4-3 to recommend that the interim use be granted for a period of three years from the Council approval date, should it be approved. Recommendation Staff recommends that the City Council deny the Interim Use Permit request for the fitness center as it is not compatible or consistent with the purpose and intent of the Business Park District. S:kPLANNING\Case Files\2003\CU 03-27 Donner\ 10-20 CC memo.doc Location Map Case Number. CU 03-27 DONNER ANYTIME FITNESS August 20, 2003 City of Elk River 13880 Highway 10 Elk River MN 55330 I would like to review and smnmarize the benefits to the commumty, area businesses and the current and future tenants of the Elk River Business Park in opening an Anytime Fitness Center at 10734 Industrial Circle, Elk River. Our research indicates that the local fitness clubs are gender specific and do not have the variety of services that the health minded public demands. The closest full service fitness cemer is a minimum of eight miles away and fimess centers that offer 24-hour availability are up to 20 miles away. Due to this lack of availability in Elk River of fitness centers that cater to all ages and genders, it is our intent to offer a full service center that provides 24-hour availability and the supporting services for the families in the surrounding community and employees of the Elk River Business Park. The club will become an integral part of the Community's healthy life style. We will provide a web site to the membership with additional information about lifestyle choices, member services, and fitness center programs and events. We will also work closely with community organizations and businesses to create custom programs that will support Senior Citizens, area families, and local business employees in staying physically active. With our enormous wealth of experience and traimng we will provide services that will make Elk River a healthier place to live and work. Our major goals are to provide a safe and fun environment for our membership. State of the art security employing a digital camera system and 24-hour secure access will provide a safe environment and the employment of a variety of work out equipment and programs will provide the fun. A sampling of the equipment we will have available follows: Free Weights Treadmills · Stationary Bikes · EXF Cross-Trainers · Cardio-Theatre · Strength Equipment · FREE Fitness Orientation · Locker Room Facilities It is our intention to develop an active membership in this location and at a later time to open a larger more comprehensive center to serve Elk River and surrounding communities. Sincerely, Karla Donner, Franchise Owner 812 Marion St. Isanti MN 55040 § 30-1293 ELK RIYER CODE (19) Ministorage. (20) All uses allowed as a conditional use in the I-1 zone. (e) Architectural standards. No provisions of section 30-938 except subsection 30-938(2) per- raining to exterior building finish and subsection 30-938(3) pertaining to roofing standards applies to this district. (Code 1982, § 900.12(15)) Sec. 30-1294. BP business park district. (a) Purpose. (1) The business park district is established to encourage a planned, integrated envi- ronment for certain industrial, office, and commercial uses which are compatible with and complement each other as well as the surrounding land uses. The under- lying land use designation within the dis- trict may vary and may be either light industrial or highway business. Develop- ment within the business park district will correspond with the land use desig- nation. Industrial and office uses are al- lowed where the land use designation is light industrial, and commercial uses are allowed where the land use designation is highway business. (2) It is the intent of this section that devel- opment reflect common themes using com- patible architectural design and consis- tency in signage, landscaping, and hghting. It is also the intent tb encourage busi- nesses which generate a high number of jobs per square foot rather than predom- inantly warehouse type uses. (b) Permitted uses. Permitted uses in the BP district are as follows: (1) Permitted uses allowed when the under- lying land use is light industrial are as follows: a. Light manufacturing. b. Research and development laborato- ries. c. Government, business, and profes- sional offices. (2) d. Mail order operations. e. Telecommunication operations. f. Sherburne County fair. g. Warehouse space not exceeding 50 percent of the entire building. h. Showroom space. i. Repair and maintenance, excluding auto repair. Permitted uses allowed when the under- .1.ying land use is highw.ay business are as follows: Health athletic clubs. b. Personal service establishments. c. Financial institutions. (c) Accessory uses. Accessory uses in the BP district are as follows: (1) Off-street parking lots or facilities. (2) Private recreational facilities. (3) Public shelters and essential services. (4) Retail sales, provided the following condi- tions are met: a. The retail sales activity shall not be located in an administrative office facility, but shall be located within a business, the principal use of which is not commercial sales. ~b. The retail sales activity shall not occupy more than 15 percent of the gross floor area, or a maximum of 5,000 square feet of the occupied quarters, whichever is less. c. The retail sales activity shall be re- lated and subordinate to the princi- pal use. d. No sign identifying or promoting that retail sales occur within the building shall be visible from outside the build- ing. e. Freestanding retail shops and stores shall be limited to those which com- plement other uses within the busi- CD30:138 Economic Development Authority Minutes September 8, 2003 o Strategic Industrial Marketing Activities Update Page 2 in to the lis' Development Assistant Heidi Hall Ms. Hall reviewed the Product Competitive, Key Account/Leact Oene~-atlon, 13romot~ons ex: Advertising, Strategic Partnership, and Business Retention Strategies as outlined the EDA dated September 8, 2003. Ms. Hall provided two corrections available industrial lease space. School. Ms. Energy City, "sustainable" bull renewable through Energy City Hall. asked how the City became involved in promoting the Rogers explained that the new school is being promoted through of the fact that it is considered a "high performance" or and incorporates energy efficient capabilities with a Ms. Hall noted that there are other projects promoted ? Farm, and the Livonia Township Ms. Mehelich noted that staff schedule a tour of Cymbet with keynote speak Mark Sheffert. Manufacturers & Technology Week with the Chamber of Commerce to which will be followed by a luncheon event is being planned in recognition of 20-24). 6. Industrial Land Development Strate~ Director of Economic Development Cath Ehlers & Assodates. Mr. Inman discussed industrial/business park development costs dated September 8, 2003. Mr. Inman stated that if 1 his recommendations, that they then should meet the process of evaluating their cost of the land and that the EDA should determine if they prefer having RFP (Request for Proposals) would be appropriate. Mr. strategies that may be required in negotiations, such as introduced Sid Inrnan of outlined in the analysis of the .'d to the EDA in the staff report EDA was comfortable with two landowners to begin the process. He stated developer and if so, an explained various .M.s. Mehelich noted that option would be left open to negotiate a "~ cost when in direct competition with another city. X COMMISSIONER DWYER MOVED TO CONTINUE DISCUSSIONS WITH THE TWO LANDOWNERS WITHIN THE PARAME~RS SET FORTH IN THE EHLERS & ASSOCIATES PROPOSAL.~K COMMISSIONER KOENIG SECONDED THE MOTION. THENx MOTION CARRIED 6-0. ~ Case No. CU 03-27, Request for an Interim Use Permit for a Fitness Faciliw, Elk River Business Park Economic Development Authority Minutes September 8, 2003 Page 3 Director of Economic Development Catherine Mehelich stated that the EDA has ~,~~.~ requested to comment on a request for an Interim Use Permit for a fitness ty in Elk River Business Park. She noted that staff recommends denial of the request and suggests rezoning of the property to Highway Business, if the EDA x~x .~.~''> wished to allow this type of use in this location. ~;~ ~\X3 ....... O~ D~scuss~on followed regar&ng whether fitness facflines should be allowed ~n the Business Park zoning districts. Commissioner Klinzing noted that having a fitness facility in a business park may be looked at as an amenity. COMMISSIONER DWYER MOVED TO RECOMMEND DENIAL OF THE INTERIM USE PERMIT REQUEST FOR A FITNESS FACILITY IN ELK RIVER BUSINESS PARK. COMMISSIONER MOTIN SECONDED THE MOTION. THE MOTION CARRIED 4-2. Commissioner Koenig and Kuester opposed. COMMISSIONER KLINZING MOVED TO RECOMMEND THAT THE CITY COUNCIL, PLANNING COMMISSION AND STAFF STUDY THE ISSUE OF WHICH ZONING DISTRICT WOULD BE MOST APPROPRIATE FOR THE LOCATION OF FITNESS FACILITIES. COMMIISSIONER MOTIN SECONDED THE MOTION. THE MOTION CARRIED 6-0. COMMISSIONER KOENIG MOVED TO OPPOSE REZONING OF THE ELK RIVER BUSINESS PARK PROPERTY TO HIGHWAY BUSINESS. COMMISSIONER KUESTER SECONDED THE MOTION. THE MOTION CARRIED 6-0. ,~nsider Year 2004 Economic Development Budget Dir, e~or Economic Development Catherine Mehelich reviewed the proposed r~e~i:ion'~~004 EDA Budget. COMMISSIONESR~OTIN MOVED TO APPROVE THE 2004 BUDGET REVISIONS OUTLINF~ IN THE MEMO TO THE ECONOMIC DEVELOPMENT AUT~ITY DATED SEPTEMBER 8, 2003. COMMISSIONER DWYER SE'C~NDED THE MOTION. THE MOTI. ON CARRIED 6'0'- ~ 8. _Conside~ New Business Incubator T~an..t~.~p2~ CTrporation Economic Development Assistant Heidi Hall introduced Mr.'R~Henningsgard of itc 130 space. Mr. Henningsgard provided the Commission with information rega '