9.1. SR 03-16-2015City of
Elk
River
Request for Action
To
Item Number
Mayor and City Council
9.1
Agenda Section
Meeting Date
Prepared by
Worksession
March 16, 2015
Zack Carlton, Planner I
Jeremy Barnhart, Deputy Director, CODD
Item Description
Reviewed by
Concept Review: Proposed Skeeter Boat Dealership
Chris Leeseberg, Park Planner /Planner
on Saxon Motors Site
Reviewed by
Cal Portner, City Administrator
Action Requested
Provide informal, nonbinding feedback on the proposed redevelopment of 17354 Zane Street.
Background /Discussion
Dave Markquart, owner of Skeeter Boat Center, is seeking feedback for his proposed redevelopment of
the Saxon Motors Site. Mr. Markquart currently owns two Skeeter Boat dealerships, Ramsey, MN and
Chippewa Falls, WI. The Ramsey location will be relocated to this site. The dealership is a retail fishing
boat business selling high -end fiberglass boats with maintenance and repair work occurring on site.
The applicant's goal is to utilize this site as a long term home to grow his business and redevelop a
blighted site into a community asset. The project will include expanded green space, a large number of
trees, and a half acre pond along the eastern edge of the parcel. The pond is a key feature of the site and
will be planted with native vegetation and stocked with fish. It also significantly reduces the impervious
surface area of the site and serves key marketing efforts by providing buyers with a chance to test out
some of the boats features on site.
Analysis
Land Use and Zoning
The property is currently zoned C -3 (Highway Commercial) where marine sales are classified as a
Conditional Use. The applicant will need to apply for a Conditional Use Permit (CUP) before
development could begin.
The underlying land use of the site is High Density Residential as identified in the FAST Study and
Comprehensive Plan. This land use does not support the current proposal and a land use amendment will
need to be approved before a CUP can be granted. The land use designation is based on the limited
access, (which will be reduced further when the intersection of 173 Td Avenue and Highway 10 is closed),
and high visibility. The visibility supports and helps the proposed use, but the access limitations may hurt
the location in the long -term. The applicant is aware of the limitations and future access changes and is
not concerned, as he feels his business is destination driven.
Site Plan
Access to the site from Zane Street will be from the existing driveway on the south end of the property.
The access on the north side will be removed and replaced with vegetation and screening.
P a w E R E U a r
NaA f RE]
The area north of the building will be used for boat storage and includes berming and vegetation for
screening the storage. The pond is approximately 0.5 acres in size and will be up to 15 feet deep. The
south half of the site will be used for boat display and customer parking.
Landscaping
City ordinance requires the installation of 68 trees for a parcel of this size (2,600 foot perimeter divided
by 40, plus three more), half of which can be satisfied by existing trees on site. The submitted site plan
includes 51 trees, satisfying ordinance requirements.
Lighting
Lighting will be upgraded to more energy efficient fixtures and the number of fixtures will be significantly
reduced. City ordinance requires that commercial parking lots are lit to a minimum of three footcandles.
A photometric plan showing compliance with the requirements will be required for future applications.
Building
The entire building will be updated and remodeled. The building will be used for office space, boat
display, maintenance, and repair work. The applicant is also exploring the possibility of renting out a
portion of the building for office uses. Facade improvements are proposed for the east side of the
building where boat display and sales will primarily take place.
Parking
The current plan includes a total of 152 parking spaces. Of these, 63 are dedicated to vehicle parking and
89 for boat parking. The required number of parking spaces will be determined based on architectural
plans and identified uses within the building.
Tax Increment Financing
The applicant intends to submit an application to establish a redevelopment Tax Increment Financing
District to complete the project. A critical component in establishing a redevelopment district is a finding
that the structures within the district are substandard. The applicant has financially facilitated the
inspection. That report, and the discussion offered by the City Council, will help inform the applicant's
decision making.
The last redevelopment district was to facilitate the downtown projects in 2006.
In addition to the possible land use changes, the Council is asked for feedback regarding their appetite for
a redevelopment district for the property.
Financial Impact
None
Attachments
• Location Map
• Applicants Narrative
• Site Plan dated February 20, 2015
• Site Renderings dated February 20, 2015
• Staff Comment Letter dated March 11, 2015
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C ase No: CR 15 -01 l i e
Concept Review
17354 Zane St NW, Elk River
Background
Dave Markquart Enterprises, LL[ signed a contingent offer to purchase 17354 Zane 3tNVV from Sun Rae
Apartments, LL[ on February 19, 2015. Zane Street would become home for Skeeter Boat Center (3B[),
currently with locations in Ramsey, and Chippewa Falls, VV|. Its Minnesota location would move 5 miles
up the road to occupy the Elk River location. Dave Markquart is from the Eau Claire/Chippewa Falls, VV|
area and owns both Skeeter Boat Center (90%) and Dave Markquart Enterprises (100%), a real estate
company. Skeeter Boat Center is a retail fishing boat business selling primarily high end Skeeter
fiberglass fishing boats powered by Yamaha outboard motors. 3B[ offers a full range of fishing boat
services, including used boat sales, marine maintenance/repair and fishing boat parts and accessories.
Skeeter is a luxury boat brand with package prices typically ranging from $30-$80,000 apiece.
Markquart is also 50% owner in their family auto dealership business which is the largest Auto
Dealership Group in NVVWisconsin. Annual sales total over $110 million. The Markquart Dealership
Group currently employs over 230 full and part-time employees. Dave Markquart Enterprises, LLC
currently has $10million in real estate holdings.
Skeeter Boat Center was founded by Dave Markquartin January of2009. 38[ started byleveraging
Markquart Auto Dealership resources with 1 employee (plus owner), no customers, and a vvobsito.
Since 2009, Skeeter Boat Center has grown to be the 3 d largest Skeeter dealer in the country (out of
165) through internet/social media marketing, specializing in meeting the needs of fishermen, and
personalized service. Skeeter Boat center currently employs 17 team members 15 full time and 2part-
time. Its long standing goal is to become the largest Skeeter dealer in the country.
Proiect Scope
Skeeter Boat Center's goal is to find a long term home from which to grow and prosper while turning a
blighted community property into a community asset. The Zane 3tNVV location offers 3B[the
opportunity to store more boats inside and expand its growing service and accessories business with
increased service capacity when compared to its current location in Ramsey. 3B[ needs quality,
attractive and unique facility to attract luxury boat buyers and quality staff members as it continues to
grow.
3B['s customer base is comprised ofoutdooranon. They appreciate green space, trees and the
enjoyment of"p|ayin8"innature. A key feature in this project would bo "the pond." The pond would
serve multiple purposes. The first is environmental. Installing the pond immediately significantly
reduces the enormous blacktop lot in front of the facility. |t would bo built with aquatic plants native to
area like roods and cat tails. Appropriate landscaping and trees would create an integrated, natural fooi
The pond would be stocked with gamefish, including bass, pan fish and saugers. The second function
would be business efficiency. Having a pond on premise would significantly reduce the amount oftrips
our technicians need to make to neighboring rivers and lakes to water test boats for delivery and repair.
Pond access would save everyone time. And finally, the pond would bea key to our marketing efforts.
It would boa very unique feature that would attract customers. Our sales staff would use the pond tn
demonstrate boat features on the water like stability and accessory functionality (we would use o|ontrin
trolling motor, not main motor to move about the pond). The pond would allow ustn hold electronics
1
demonstrations and seminars. We'd also bo able to hold customer events like "Teach a kid to Fish" to
create public good will. Having "the pond" would make Skeeter Boat Center in Elk River a very special
place to shop fishing boats, probably unlike any in the country.
Economic Impact
Skeeter Boat Center would be relocating its staff from Ramsey to Elk River. SBC currently employs 8
staff members. Seven full time, and 1 part time. 3B[ would anticipate expanding its service staff byfive
full time staff members within two years. 2/3of our jobs pay over $50,000 per year. Additionally, there
is room for a separated office suite on the second floor. | don't have an agreement, but | have engaged
our social media marketing vendor with whom we do a lot of business about renting that space. Their
lease isupin February of2017. They currently employ 5 people and are looking to expand to about 8'9
people which would bo maximum capacity for that space. Most of their employees make over $50,000.
And if they would choose not to come, I believe we could attract another renter with jobs quite easily.
Skeeter Boat Center and its rental customer would be able to generate at least 18-20 quality jobs within
two years ofopening.
Skeeter Boat Center b a destination business. Customers find us on the intornot and then drive to our
location. VVo sell boats all over the Midwest, so that means frequent long distance travel to test drive
boats and take delivery. Our customers often need hotels, and frequently take a break atarestaurant
while shopping for boats, or staying overnight.
Community Impact
Skeeter Boat Center would blend into the neighborhood with the addition of the pond and significant
troo*oapin8on the property. 3B[ doesn't require bright stadium lighting like a car dealership solight
poles will bo reduced from 45to about D3 for the purpose of security, accent and ingress/egress lighting.
The boat storage areas would be surrounded by evergreens or woods ensuring screening 360 days a
year. The facility would be reconstructed with energy efficient improvements using available local
programs and incentives. Since SBC is a destination business, it is not reliant on retail traffic off Hwy 10.
Therefore the anticipated closing of the closest southerly entrance to Hwy 10 is inconsequential.
Twenty customers a day visiting Skeeter Boat Center to shop for a boat or to service a boat would be a
lot. That would be far less traffic driving past the neighboring condominiums than if the property was
converted to multi-family housing. VVo believe Skeeter Boat Center would in fact become an asset to
the Elk River community.
TIF Request
My offer to purchase includes a contingency on receiving a TIF package from the city and county for
restoring blighted property. The county assessor has visited the property and determined it to be
blighted. However, the state has specific rules for determining if a facility is sub-standard and thereby
could qualify for T|F. Jeremy is helping us work through the state assessment process. Photos ofthe
property in its current condition are including with the renderings of the proposed reconstruction and
site plan for your review.
2
TIF Request — Continued
The county assessor has adjusted the property valuation and property taxes downward for both 2016
and D317 based on the property's blighted condition. Ho has also projected the property taxes for this
property, if redeveloped, to be $50 per square foot based on comps in the area. |n meetings and
conference calls discussing the project, he has stated that he would favor recommending TIF to the
county board. Here is an overview of the property valuation and taxes provided by county assessor via
17354 Zane St NW, Elk River
Property Tax Review 2015 2016 2017
Property Valuation less $20,000 for small lots $730,000 $505,000
Property Vm|mmtimmAssmmmimgUmmprmvemmemts - $1,200,000
less $20,000 for small
Property Taxes if Remains C-3 $29,200 $20,100
Property Taxes if Rezoned Multi-Family - $11,000
rates are about half mfcommercial rates
Property Taxes if Planned Improvements Made $48,000
As you can see by the projected taxes, there would bo more revenue for the school and state ifthe
property were to remain commercial and be redeveloped. It would take a multi-family project twice as
big to generate the same tax revenues.
Summary
Our goal is to create a long term home for Skeeter Boat Center while becoming an asset to the Elk River
community. Would you be willing to amend the land use plan from multi-family back to commercial to
enable aT|Fapplication? Would you support a TIF application for the purpose of restoring a blighted
property that has been empty for over 6 years into a community asset?
Respectfully submitted,
DavoMarkquart
uxvnor
Skeeter Boat Center
Dave Markquart Enterprises
c
1 000 N Halsted Street - Ste 205
Chicago, Il llinois 60642 -4251
It] 312.664.5388 [fl 312.664.5338
Site Plan
1. Boat Parking
2. Customer Parking
3. Employee Parking
4. TruckTrailers
5.
Boat Hoist
6.
Dock
7.
Pond-.5 acres
8.
Ornamental Black Steel Fence
9.
Chain Link Fence
10.
Pavilion
11.
Existing 33,902 sq. ft. Building
Notes:
All ideas, designs, arrangements, and plans indicated orrepresented bythis
Project Name
Proj No 325.01
Skeeter Boat Center
drawing are owned by and the property of Ideation Studio Inc., and were
created, evolved and developed for use on and in connection with the
17354 Zane Avenue NW
Skeeter Boats
pate 20FEB2015
specific project None of the ideas, designs, arrangements, and plans shall be
used by a disclosed to any person, firm or corporation for any purpose
Elk River, MN 55330
Scale v128 ° -rT
Drawing Name
Drawn By BD
whatsoever without written permission of Ideation Studio Inc. Written
dimensions on these drawings shall have precedence over scaled
Site Plan
Site Plan
Sheet 1 Of 1
Revision / Issue/ Addendum
dimensions and conditions shown on these drawings. Shop details must be
submitted to this office for approval before preceding with construction.
100 0 N Halsted Street - Ste 205
Chicago, IIIIinois 60642-4251
[t] 312.664.5388 [f] 312.664.5338
Notes:
All ideas, designs, arrangements, and plans indicated or represented by this
Project Name
Proj No 325.01
Skeeter Boat Center
drawing are owned by and the property of Ideation Studio Inc., and were
created, evolved and developed for use on and in connection with the
17354 Zane Avenue NW
Skeeter Boat Center
Date 20FEB2015
specific project. None ofthe ideas, designs, arrangements, and plans shall be
used by or disclosed to any person, fine or corporation for any purpose
Elk River, MN 55330
Scale N/A
Drawing Name
Drawn By BD
Exterior Rendering
whatsoever without written permission of Ideation Studio Inc. Written
dimensions on these drawings shall have precedence over scaled
South Exterior Rendering
Sheet 1of1
Revision /Issue /Addendum
dimensions and conditions shown on these drawings. Shop details must be
submitted to this office for approval before preceding with construction.
100 0 N Halsted Street - Ste 205
Chicago, IIIIinois 60642-4251
[t] 312.664.5388 [f] 312.664.5338
Notes:
All ideas, designs, arrangements, and plans indicated or represented by this
Project Name
Proj No 325.01
Skeeter Boat Center
drawing are owned by and the property of Ideation Studio Inc., and were
created, evolved and developed for use on and in connection with the
17354 Zane Avenue NW
Skeeter Boat Center
Date 20FEB2015
specific project. Noneoftheideas, designs, arrangements, and plans shall be
used by or disclosed to any person, fine or corporation for any purpose
Elk River, MN 55330
Scale N/A
Drawing Name
Drawn By BD
Exterior Rendering
whatsoever without written permission of Ideation Studio Inc. Written
dimensions on these drawings shall have precedence over scaled
North Exterior Rendering
Sheet 1of1
Revision /Issue /Addendum
dimensions and conditions shown on these drawings. Shop details must be
submitted to this office for approval before preceding with construction.
xwer
13065 Orono Parkway
Elk River, MN 55330
March 11, 2015
Dave Markquart
Dave Markquart Enterprises
Box 1528
Eau Claire, WI 54702
RE: Comment Letter,
VIA EMAIL: dave@skeeterboatcenter.com
Concept Review — Boat Sales in C -3 Zoning District
Dear Mr. Markquart,
Staff conducted a review of the plans submitted on February 23, 2015. The following comments and
recommendations are intended to identify some issues, but should not be considered as complete
comments for your project. As more detailed plans and information are submitted, staff will provide
comments based on applicable city ordinances and codes.
The property is currently zoned C -3 (Highway Commercial) where marine sales are classified as a
conditional use. However, the underlying land use guiding development for the parcel is high density
residential. As a Conditional Use Permit (CUP) is required to operate a business of this type, the
land use must support the proposed use. In this case, the land use does not support the use and a
land use amendment will be required before a CUP can be approved. These two processes may be
completed concurrently.
Site Plan
1. The current site plan identifies 63 vehicle and 89 boat parking spaces for a total of 152
spaces. This will require 10 parking lot islands per city ordinance, which is satisfied in the
current site plan.
2. Please submit floor plans identifying the area of each space and use. This information will be
used to accurately calculate the minimum number of required parking spaces.
3. Please re- design the parking in the southwest corner of the lot to better support vehicular
circulation and parking access.
4. A grading plan will be needed to verify proposed grades and slopes for the screening around
the boat storage area. Slopes shall not exceed 3:1 without city approval.
5. City ordinance requires the installation of 68 trees for a parcel of this size (2,600' perimeter
divided by 40, plus three more), half of which can be satisfied by existing trees on site. The
submitted site plan includes 51 trees, satisfying ordinance requirements.
Phone: 763.635.1000
Fax: 763.635.1090
www.ci.elk-river.ran.us
P 0 W E R E 0 0 Y
Ir
NA "I .0
6. The landscape plan submitted with following applications must identify plant species and
sizes.
7. The proposed eight foot fence along the property lines will require a permit.
8. Ordinance requires that all commercial parking lots are lit to a minimum of three
footcandles. A photometric plan showing compliance with the requirement as a part of any
future application will be required.
9. The pavilion is located within the 25 foot front yard setback for accessory structures. Please
submit a plan relocating the structure outside of the setback.
10. Planted areas will need to be irrigated. Areas devoted to native, or natural plantings need not
be irrigated
Engineering and Environmental
11. Depending on the full scope of the proposed project, Stormwater Management requirements
may be needed under redevelopment. If Stormwater Management is required, will the existing
pond be used, the new proposed pond, or will another device be used for stormwater
treatment?
12. If the proposed project will disturb equal or greater than 1 acre, an NPDES permit will be
required.
13. To what depth will the pond be excavated, and how will this impact the groundwater level at
the location of the pond?
14. How will the pond's slopes be retained to prevent sedimentation in the basin?
15. Lots within the Shoreland District should not exceed 25% impervious surface. What will the
final amount of impervious surface be? If the impervious surface exceeds 25 %, a stormwater
management plan will be required.
16. Any proposed vegetation in and around the pond should be native. Typha latzfolia (Narrow
Leaf Cattail) and Phragmites australis (Reed Canary Grass) are considered invasive and will not
be allowed on site.
17. Will there be a landscape plan for the vegetation on the back lot?
This letter will be provided to the City Council as a starting point for the concept review discussion.
Please be prepared to discuss your comments and concerns during the meetings. Contact me with
any questions.
Sincerely,
Zack Carlton, Planner I
City of Elk River
zcarlton@E1kRiverMN.gov
SkeeterBoats
Concept Review
Meadowvale Road
Background
Re-develop Saxon Motors Site
Marine Sales and Service
Land use amendment
CUP for boat sales