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7.5. SR 03-17-2014 City of Elk Request for Action River To Item Number Mayor and City Council 7.5 Agenda Section Meeting Date Prepared by Public Hearinj March 17, 2014 Zack Carlton—Planner I Item Description Reviewed by Ordinance Amendment: Great River Energy Zone Jeremy Barnhart,Deputy Director, CODD Change, Case No. ZC 14-01 Reviewed by Cal Portner, City Administrator Action Requested Approve,by motion,the Zone Change from R3 (Townhome District) to I1 (Light Industrial District) as proposed. Background/Discussion Great River Energy(GRE) proposes to change the zoning of the subject property from R3 (Townhome) to I1 (Light Industrial). This zoning amendment is consistent with the 2004 Comprehensive Plan. The GRE plant is located next to Elk River's Wastewater Treatment Facility. The city will be undergoing a facility expansion and the only location available is the GRE property. In 2007, the city and GRE entered into an agreement where among other considerations,the city agreed "to diligently pursue the rezoning to facilitate the transfer of property to the city." The zone change and subsequent conditional use permit are the result of that agreement. The subject property is a 5.51 acre parcel located between a multi-family residential development, a cemetery, and a commercial development. Public Hearing No one spoke during the public hearing, and no comments have been received for or against the application. Planning Commission The Planning Commission had no concerns and unanimously recommended approval. Financial Impact None Attachments • Planning Commission packet dated March 11, 2014 • Ordinance Amendment P a w E A E U s r NaA f RE] City of El Request for Action ,iVer To Item Number Planning Commission 7.3 Agenda Section Meeting Date Prepared by Planning Items March 11, 2014 Zack Carlton -Planner Item Description Reviewed by Request by GRE for Zone Change from R3 to 11, Jeremy Barnhart, Deputy Director, CODD Case No. ZC 14-01 —Public Hearing Reviewed by Action Requested Recommend, by motion, approval of the Zone Change from R3 (Townhome District) to 11 (Light Industrial District) as proposed. Background/Discussion Great River Energy (GRE) proposes to change the zoning of the subject property from R3 (Townhome) to 11 (Light Industrial) to be used as an outdoor storage area. This zoning amendment is consistent with the 2004 Comprehensive Plan. The GRE plant is located next to Elk River's Wastewater Treatment Facility. The city will be undergoing an expansion to the facility and the only place they can expand is into GRE property. In 2007,The City and GRE entered into an agreement where among other considerations, the city agreed "to diligently pursue the rezoning to facilitate the transfer of property to the city." This zone change and subsequent conditional use permit is the result of that agreement. The subject property is a 5.51 acre parcel located between a multi-family residential development, a cemetery, and a commercial development. Comprehensive Plan The subject property has a land use designation of Light Industrial (I1). The I1 category includes industrial uses that are lower in intensity of activity, including outdoor storage and an accessory use. The Planning Commission and City Council are considering an outdoor storage Conditional Use Permit concurrent with this application (CU 14-09). Background In 2010, GRE initiated, then withdrew an application to rezone the property. At that time, there was some concern on the part of the area property owners with industrial uses, in particular the uncertainty of what was planned. The corresponding conditional use permit outlines the plan, including project reach, and screening planned. Applicable Regulations In reviewing aproposed amendment, consideration shall begiven to existing conditions within the area directly and indirectly affected by the proposal, the conservation of property values, the use to which the property affected ' being devoted at the time, and relevantprovisions, if any, in the land use plan. PO W E R E 0 8 r NATUREI The comprehensive plan guides the property for industrial uses. The purpose of the comprehensive plan is to establish a framework and expectations as to the future use of land. In the review of the standards for a Zone Change as outlined, it appears that the request is consistent with all of these standards. Financial Impact None Attachments ■ Location Map ■ Applicants Narrative ■ 2007 agreement between the city and GRE. N:ADepartments\Community Development\Planning\Case Files\ZC\ZC 14-01 GRE\ZC 14-01 SR GRE PC 03-11-14.docx Ordinance, Section 30-933-936. In addition to the planned buffer of additional trees and fencing, the existing mature trees will not be disturbed north of the Vernon Cemetery Site which will provide an additional level of noise and visual buffer from the proposed development. Finally, according to Section 30-1292 of the Elk River Code of Ordinances, the 1-1 district shall serve as a transition between more industrial uses and residential and other business uses. This district is appropriate for manufacturing, warehousing, and similar industrial uses...These areas are intended to encourage the development of industrial uses which are clean, quiet, and free of hazardous or objectionable elements such as noise, odor, dust, smoke, glare, or other pollutants." The GRE parcel stands as a buffer between the industrial facilities to the south, the business park to the east and the residential uses to the west. GRE's development will provide for a more attractive and efficient use of the currently vacant parcel while minimizing the aesthetic effects to residents and businesses. The intended storage use by GRE is also compatible with the clean and quiet industrial uses intended by the Zoning Ordinance. What are the benefits to the City? The City will benefit by allowing the Wastewater Treatment Facility to expand so that the facility can meet the necessary state guidelines while also allowing for a more efficient use of the GRE property. The City also benefits by reaching one of their goals which is to have their land use district be more compatible with their zoning districts by rezoning the expansion parcel from residential to industrial to match the land use plan. Additional Questions for the CUP Hours of Operation: The site operates from 7:00 a.m. to 3:30 p.m. Number of employees: 10 employees Number of parking stalls: No parking stalls are proposed Screening of the site: The majority of the existing trees along the eastern, western and northern portions of the site will be preserved. There is single family residential properties adjacent to the northwestern property line. A dense planting of coniferous, overstory and ornamental trees will be planted along this edge to provide a visual buffer between the storage area and the residences. This landscape screen will consist of approximately 64 trees mixed within the existing trees in an area, approximately 30' wide x 450' long, running north/south along the western property line. The typical screening section will stagger three rows of plantings within the 30' width to provide a dense landscape buffer. A majority of the additional planting within the buffer will be coniferous trees to provide year round screening. Proposed building materials &standards: No buildings are proposed for this site. Page 415 Great River Energy—Outdoor Storage Narrative w �� fad•.ems •♦ — �© wow ��■� Jim OWN ��■� a - 'Pori sir �. GREAT RIVER ENER G Y Outdoor Storage Project Narrative Project Description Great River Energy ("GRE") proposes to change the zoning classification of a portion of its Elk River Headquarters Generating Plant from R3 (Townhome District) to I1 (Light Industrial District). GRE has also applied for a Conditional Use Permit to request that the expansion parcel be used as an Outdoor Storage Area which is an allowable conditional use within the I1 Zoning District. The expanded GRE parcel contains approximately 5.51 acres. The project area includes storage areas and a crushed rock surface and a small detention pond to the east of the storage area. The total impervious area is 2.34 acres or approximately 42%of the site leaving 57%or 3.17 acres of the site as wooded landscape area. No development is proposed north of the Vernon Cemetery property leaving approximately 2.18 acres wooded and undeveloped as shown on the Site Plan. The proposed detention pond will contain all of the runoff for the storage area and there are no proposed utility extensions or buildings planned for this site. See the attached Grading and Utility Plans for all specific design details. An eight foot high chain link perimeter fence is shown on the site plan surrounding the storage area to secure the site. From the Landscape Plan and Illustrative Plan, you can see that 64 additional trees will be planted on-site to further screen the existing Vernon Estate homeowners from the storage area. The GRE Plant operates between the hours of 7:00 a.m. and 3:30 p.m. and the expanded storage area could have fork lifts or front end loaders moving materials during those hours. Reason/purpose of the zone change The Great River Energy Plant is located adjacent to the City of Elk River's Wastewater Treatment Facility as shown on the Vicinity Map. (See Figure 1) Recently,it was determined that additional land Page 11 S Great River Energy—Outdoor Storage Narrative is required so the City of Elk River can expand their existing treatment facility to meet new effluent permit limits from the MPCA and also accommodate growth. The new permit limits and planned growth will require N the City to expand existing processes and add new treatment processes. The existing wastewater treatment facility site is not large enough to accommodate the proposed improvements and = requires the City to expand their facility to the south to _ accommodate the new processes. The expansion of -� - - the Wastewater Facility will consume an area currently j used by GRE for their outdoor storage of materials. Therefore, GRE needs to construct another area on their site for outdoor storage. C What has changed to warrant the zone change? x GRE is requesting to expand their property use at this time due to the City's Wastewater Expansion Project -Figure I- Vicinity Map that is set to be constructed in the summer of 2014 which will eliminate their current outdoor storage area. Site Is the change consistent with the City of Elk River 0 Comprehensive Plan? The City of Elk River's Comprehensive Plan shows the v Industrial land use expansion project area for GRE as a part of a large industrial corridor along the east side of Highway 169. (See Figure 2) Industrial properties span from Main Street,just north of the expansion site,south to 165th Avenue NW. The site outlined near the northern edge of this industrial corridor has a future land use of Industrial and is consistent with the Comprehensive Plan. The proposed use also contributes to several of the overall goals and Vision outlined in the Comprehensive Plan; . fi Page 2 S Great River Energy—Outdoor Storage Narrative 1) Community and economic development policies will ite seek to attract employment opportunities and goods and services needed by the community. 2)Providing community facilities that meet the needs of Elk River residents 16 Commerical 8 Industrial Zoning 3) Rezone property to a zoning district compatible ' with a land use plan category to 4)Locate industrial development next to adequate transportation systems 5) Ensure capacity is reserved for potential high demand industrial or office uses that may provide positive economic development opportunities to the community. 6) Support collaborative solutions for local facility needs Is the proposed use compatible with surrounding properties? Vernon Estates is located along 1st Street NW and the Vernon Cemetery are zoned R3 and are located to the north and west of the proposed site. The nearest townhome is approximately 180'from the proposed site improvements. The Carson Business Park,which is zoned C3,is located to the east of the site and the Great Figure 3 -Current Zoning Map— Commenzal River Energy Plant and Elk River Wastewater Treatment �'Industrial Corridor Facility are located to the south of the site and are zoned I1. (See Figure 3 &4) The proposed expansion site is compatible with the C3 existing C3 uses within the Carson Business Park which PUD include the back side of three commercial buildings,20' GRE-Expansion Site 30 parking stalls, and Carson Court NW. The proposed site is also compatible with the existing Wastewater Treatment Facility and the rest of GRE's existing plant. The Vernon Cemetery and Vernon Estates are uses that need to be provided with an appropriate level of buffer to be compatible. As you can see from the Landscape Plan, Tree Preservation Plan, and Illustrative Plan, a 30'wide x 450'long buffer with approximately 64 new trees will be established to buffer the outdoor storage area from both northern uses. The buffer will follow the guidelines established in Elk River Zoning Figure 4 -Surmunding Zoning Map Page 3 5 Great River Energy-Outdoor Storage Narrative Signage— how many, sizes, locations, type: No signs are proposed for this site. Outdoor storage: The following is a list of potential equipment stored on-site. The quantity of these items can go up and down as they are used during the course of a year. ■ transformers, pole anchor assemblies, circuit breakers, wire, control building foundations, substation control foundations, switches, pole top assembly kits, circuit switcher, 8'x8'x8' aluminum building, crossarms in various lengths up to 40', braces, spare hardware, metering sets, and aluminum crates. Page 515 Great River Energy—Outdoor Storage Narrative AGREEMENT This Agreement is entered into this ti ,O day of 2007, by and between Great River Energy, a Minnesota cooperative corporation,with its rtncipal office at 17845 East Highway 10,Elk River,Minnesota 55330 (the Cooperative),and the City of Elk River,a political subdivision with its principal office at 13065 Orono Parkway NW, Elk River, Minnesota,55330 (the City). ! WITNESSETH WHEREAS, the Cooperative wishes to develop and operate a 150-200 megawatt simple- cycle electric generation facility fueled primarily with natural gas with fuel-oil back-up (the Project) and a site under serious consideration is adjacent to GRE's existing 230 kV substation and RDF fired generating plant located in the City of Elk River in Sherburne County(the Property);and j WHEREAS,the Cooperative has represented to the City that: ; A. The Project will provide significant electric reliability benefits to the City and the 5 surrounding region,. The project is environmentally benign as it will utilize natural gas as its primary fuel and it will operate fbr peaking or emergency power; and ! s B.. Prior to construction the Project will need to be granted a Certificate of Need '. j and a Site Permit from. the Minnesota Public Utilities Commission, and an Air C i Permit from the Minnesota Pollution Control Agency;and C.. For the Project to be economically viable in the City, the Cooperative must have I the Minnesota Legislature enact legislation (the Legislation).that would exempt j electric generation equipment to be installed at the Property from taxation as personal property;and D. Even with the exemption contained in the Legislation, the Cooperative has projected that the Project if constructed and operated,would generate taxes of 1 approximately $310,000 annually attributable to the Project's real property and transmission and gas pipeline infer i�ect�ons;and f E.. In order to maximize the probability of having the Legislation enacted, the ' Cooperative has requested and received a resolution of support for the Project t from the City because without the resolution, the Legislature may not enact the 1 Legislation;and i R. Despite City support for the Project and Legislation, GRE may elect not to construct the Plant at the Property„ i WHEREAS, the City is willing to honor the Cooperative's request and provide support ! for the Legislation as set forth in this Agreement in consideration of the promises of the Company set forth herein., i i I and for the good NOW, THEREFORE, in consideration of the foregoing premises and valuable consideration,the receipt and sufficiency of which is hereby acknowledged, it is agreed as follow: 1.. Recitals„ The foregoing recitals are true and correct and hereby made a part of this Agreement. 2. Responsibility for Legislation. The Cooperative will be responsible for all of i its own costs, expenses, and activities related to obtaining the.Legislation from the Minnesota Legislature. Except as set forth in Section 3 below, the City will not have any responsibility for preparing,lobbying for, or otherwise t, pursuing the Legislation. 3.. City Commitment. The City agrees that it will provide confirmation of its support for the Project,to the legislators representing constituents residing in the City and any other legislators inquiring of the City, If Legislation is enacted, the City agrees to support the Cooperative in defending against any attempt to repeal the Legislation.. 4.. In-lieu Payments., The Cooperative shall make a $375,000 annual in-lieu payment to the City for the first five years of plant operation. The first { annual in-lieu payment shall be due one year from the date the Project is approved for commercial operation. The remaining four payments shall be paid on or before the same date in subsequent years, provided the Cooperative continues to receive the benefits of the personal property tax exemption. 5,. Other payments., The Cooperative shall make an annual in-lieu.payment to eats k the City of$0.20 per megawatt hour generated by the Project for five y n. The calculation shall be based on the actual generation of lant operatic, g p produced in the previous calendar year and such payment shall be made at the same time as the payment described in Item #4 above,. A maximurn annual cap of 35,000 will apply to this payment., � G.. Other Considerations.. The City needs to obtain not less than 14 acres of Cooperative property located adjacent to the City's wastewater treatment facility (Exhibit 1).. The Cooperative agrees to provide not less than 1A acres of land to facilitate future expansion of the wastewater treatment facility, the fi precise size and length of the land to be agreed on by the parties., The land to be provided will-be cunveyed-to-Ce-C ty-within--one ye2t of the-City's — notice to Cooperative on its need for the land, The City shall not give this notice until four years after the date of this Agreement, unless within those four years the City determines that it will be necessary to expand its wastewater treatment facility earlier to meet the City's needs and there is no feasible or prudent alternative to expand on the Cooperative land. The transfer of this land requires the Cooperative to relocate some outdoor equipment storage to another location on its property which is northeast of the wastewater treatment fatality (Exhibit 2).. This new storage location will require re-zoning and improvements to support that activity., The Cooperative and the City will diligently,pursue the re-zoning to facilitate the transfer of property to the City.. ' r i � I I 1, 9 T Public Infrastructure Upgrades., GRE will be responsible for paying directly for all infrastructure required for the construction and operation of the Project including water,wastewater,and roads. 's. 8., Provision Relating to Payment and Reimbursement. All amounts required to be paid hereunder shall be paid,without deduction or offset,prior notice or i demand, in lawful money of the United States of America at the address set forth in the opening paragraph of this Agreement or to any other address as designated by the City in writing., 9., Condition Precedent. The obligations of the Cooperative under this Agreement axe expressly conditioned upon passage of the Legislation by the Minnesota Legislature and the Legislation remaining in full force and effect and the Project being constructed and commercially operable at the Property.. j 10,. Representing of Parties. Each of the parties hereto represents to the other party that the execution, delivery, and performance by each patty has been duly authorized by all necessary action and constitutes the legal, valid, and binding obligation of each patty enforceable against such party in accordance { with its terms.. j 1L Acknowledgements by Cooperative., 'The Cooperative acknowledges and 1 agrees that other than supporting the Project in all respects: (a) no promises or commitments of any type or kind have been made by the City with respect ` to providing financial assistance to the Project whether by loan, grant,bond � ! i 6 issuance,or otherwise;(b)the Cooperative wall need to obtain all permits and f' approvals for the Project required by applicable law, including all City approvals and permits,and all environmental approvals and permits,and that no promises have been made by the City with respect to waiving or j modifying any applicable permitting requirements; (c) no promises or commitment have been made by the City with respect to the assessed j valuation of the Property or the Project or any of the facilities ancillary j thereto; and (d) no promises or commitments have been made by the City with respect to purchasing electricity from the Project or constructing, recruiting, or supporting any other electrical generation facilities within the City 12.. urisdiction.. In the event of any litigation between the parties hereto with respect to the subject matter of this Agreement (whether or not expressly covered by this Agreement) each of the parties agrees to the exclusive Jun-&-C on o the matter in-&e state-courts located-in the-C-i"nd-waives any arguments that such forum is not convenient. 11 Integration, This Agreement constitutes the entire agreement among the parties with respect to the subject matter hereof'and supersedes all other r: agreements and understandings, both written and oral, between the parties with respect to the subject matter hereof, and may be executed simultaneously in several counterparts, each of which shall be deemed an original and all of which together shalt constitute one and the same instrument,. No amendment or termination of this Agreement shall be effective unless the same shall be done in writing signed by all parties hereto,. 1 14.. Ass i anent. This agreement shall be binding upon each of the parties hereto and their respective permitted successors and assigns.. The Cooperative may .not assign its rights or delegate its duties hereunder without the express L i i1 ' I written consent of the City, which consent shall not be unreasonably withheld, except that the Cooperative may assign its rights or delegate its duties to an affiliate,an affiliate of one of its partners or to the purchasers of all or substantially all of its assets without the consent of the City;provided, however, that any such assignment shall not relieve the Cooperative of any liability hereunder unless the City expressly agrees to such release,in writing, upon written request of the Cooperative which release shall not be unreasonable withheld, and provided, further, that the assignee shall assume, i in writing,in form acceptable to the City, all obligations of the Cooperative hereunder, 15, Severabilitv., The invalidity of unenforceability of any one or more phrases, sentences, clauses, or sections of this Agreement shall not affect the validity or enforceability of the remaining portions of this Agreement, i IN WITNESS WHEREOF,the parties hereto have executed this Agreement as of the date first above written., G RIVE4ERGL C ' By' .. Its: Uc C•e- �-e �-�` ! CITY OF ELK RIVER f UL_ i By:—,°� l Its:Mayor By: r ..- Its:City Clerk i f i i j t 1 t j I l i i i WA Stfikethfoughs to be removed Underlines to be added City of Elk -�-� River Ordinance 14 - An Ordinance Amending the City of Elk River Zoning Map to Rezone Certain Property from R-3 Townhouse/ Multiple Family Residential to 1-1 Light Industrial Case No. ZC 14-01 The City Council of the City of Elk River does hereby ordain as follows: SECTION 1. That the duly adopted Zoning Map of the City of Elk River is hereby amended to rezone the property described on attached Exhibit A from Townhouse/ Multiple Family Residential (R-3) to Light Industrial (I-1). SECTION 2. That the rezoning approved by this Ordinance is based on the following findings: 1. THE REZONING IS CONSISTENT WTH THE CITY OF ELK RIVER LAND USE PLAN ADOPTED AS PART OF THE CITY OF ELK RIVER COMPREHENSIVE PLAN. SECTION 3. That this Ordinance shall take effect and be in full force from and after the date of its publication. Passed and adopted by the City Council of the City of Elk River this 17th day of March,2014. John J. Dietz,Mayor ATTEST: Tina Allard, City Clerk Pow € R19 0 ATUR Last Updated March 2014 IN ] to be removed Underlines to be added Exhibit A That part of the Southeast Quarter of the Southeast Quarter (SE1/4 of SE1/4) of Section 34, Township 33, Range 26, Sherburne County,Minnesota, described as: Commencing at a point on the North line of said Southeast Quarter of the Southeast Quarter (SE1/4 of SE1/4) a distance of 66.00 feet, as measured at right angles, east of the northwest corner thereof;thence east along said North line for a distance of 176.00 feet; thence south parallel with the West line of said Southeast Quarter of the Southeast Quarter (SE1/4 of SE1/4) for a distance of 506.00 feet to a point to be hereafter known as Point "A" for the purposes of this description;thence west parallel with said North line of the Southeast Quarter of the Southeast Quarter (SE1/4 of SE1/4) for a distance of 176.00 feet to intersect the East line of the West 66.00 feet, as measured at right angles, of said Southeast Quarter of the Southeast Quarter (SE1/4 of SE1/4), said point of intersection also being the actual Point Of Beginning of the land to be hereby described;thence return east along said parallel line to said Point "A"; thence southeasterly parallel with the westerly line of the right of way of U.S. Highway No. 169 for a distance of 840.84 feet, more or less, to intersect the South line of said Southeast Quarter of the Southeast Quarter (SE1/4 of SE1/4) thence west along said South line for a distance of 424.29 feet, more or less, to the southeast corner of said West 66.00 feet of the Southeast Quarter of the Southeast Quarter (SE1/4 of SE1/4) thence north along said East line of the West 66.00 feet for a distance of 797.17 feet, more or less, to the Point Of Beginning P a w E R E R R Y YAVR Last Updated March 2014 lt ' I