4.1a PCSR 04-28-2015Request for Action
To
Item Number
Planning Commission
14.1a
Agenda Section
Meeting Date
Prepared by
Planning Items
Aril 28, 2015
Chris Leeseber , Park Planner - Planner
Item Description
Reviewed by
Request by Morrell Companies for Zone Change -
Lot 1, Block 2, Natures Edge Business Center from
Jeremy Barnhart, Deputy Director, CODD
Reviewed by
Business Park to Planned Unit Development
(PUD), Case No. ZC 15 -02 — Public Hearin
Action Requested
Recommend, by motion, approval or denial of the Zone Change as proposed.
If the Planning Commission gives a recommendation of approval, staff suggests the following conditions:
1. A Land Use Amendment shall be approved before the rezoning can be recorded.
Overview
The property is currently zoned Business Park and requires a zoning change to allow the applicant to
expand their operations as proposed.
Background /Discussion
Per city staff recommendation, the applicant is requesting a rezoning of the subject property to PUD, to
coincide with the existing PUD zoning on their adjoining property.
The use is not consistent with the City Council approved Comprehensive Plan or the Focused Area
Study. The FAST identifies the subject property area as Station Area Village.
Station Area Village — FAST Excerpt
The area immediately adjacent to the Northstar station is envisioned as vibrant mixed -use district. As intensification of
development occurs over time, this district will include vertical mixed -use at the primary intersection to the transit station.
Residential uses are envisioned north of the station on both sides of Twin Lakes Parkway and adjacent to the park and ride
lot. Long term, housing could develop in conjunction with a parking structure as development intensifies and ridershp
increases. Ofce is along Twin Lakes Parkway south of the transit station, with larger mid -rise buildings framing the street
and smaller building further from Twin Lakes Parkway. The development is organized to promote internal circulation for
streets and drives and easy pedestrian navigation. Connections between sidewalks, trails and publicgathering places are vital
to maintaining the success of commercial uses and attracting residents to the district. The character of Twin Lakes Parkway
is distinctly urban throughout the entire district combining an attractive, comfortable streetscape, while still functioning as a
collector roadway. The round -a -bout at the re- aligned intersection of 171 st and Twin Lakes Parkway facilitates the turning
movements of the projected traffic volumes. Along the street storefronts and business occupy the ground level, while amenities
such as broad sidewalks and outdoor plazas with benches and landscaping and properly scaled lighting create a safe and
comfortable environment for pedestrians. Trails along the wetland edges tie to with sidewalks and outdoor platia r
On- street parking exists for small segments of Twin Lakes Parkway in front of retail uses. In general, parking and
P 8 W E 8 E 8 8 Y
NATUREI
loading areas should be located internal to the larger development blocks utilitiing shared or district parking to maximise
development along the street frontage and further distance buildings from the rail line noise. In addition, extensive landscape
buffers should be planted and maintained on both sides of the rail line for noise attenuation. A strategic approach for
stormwater allows for building orientation toward both natural amenities and internal stormwater treatment systems,
bringing increased value to development.
A Land Use Amendment will be required to change it to industrial.
Pending direction from the Planning Commission and City Council, the, city staff will initiate a Land Use
Amendment on the applicant's behalf that would be reviewed by the Planning Commission on May 26,
2015 and then the City Council on June 1, 2015.
Financial Impact
None
Attachments
Location Map
Applicants Narrative
Station Area Village Exhibit
N: \Departments \Community Development \Planning \Case Files \ZC \ZC 15 -02 Morrell \ZC 15 -02 sr PC.docx
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Case No: ZC 15 -02, CU 15 -08, EV 15 -04 River
Project Narrative- Rezoning - Morrell Companies
Detailed description /scope of project. What is being proposed?
Background of Company
Morrell Companies is a family owned business which has been located in Elk River since 1962. Larry and
Arlyce Morrell started the business as a common carrier trucking company, and after recognizing the
growth potential of the business, opened an aggregate division in 1974. Throughout the years,
numerous additional divisions were formed to haul concrete products, recycling material and heavy
equipment. With this growth, the entire family became involved in the family business in a variety of
capacities, and this involvement as allowed for continued growth and expansion.
Morrell Companies was originally located on the corner of Jackson & School Street. Because of its
proximity to the nearby schools, the city began working with the Morrell's to explore potential sites for
relocation. In 1984, Larry Morrell expressed interest in purchasing city owned property along 17111 and
HWY 169. Throughout the late 80s and early 90s, countless discussions were had between the Morrell's
and the city to determine the best option for relocation within the city.
In 1996, both Morrell Companies and LeFebvre Trucking expressed their interest to the city in relocating
their businesses to their current locations off of 171" Avenue. Discussion at the 4 -15 -96 City Council
work session resulted in the support of upgrading 17155 Avenue to MSA standards, using MSA funds,
indicating it would be a "significant factor in enticing the two businesses, especially Morrell, to locate in
this area" (4 -15 -96 City Council Minutes). City Council authorized the sale of the property to the
Morrell's on 6- 30 -97.
In the beginning of 1999, Morrell Companies moved into a new 36,000 square foot facility, located at
10752 17151 Ave NW, which has provided them an even greater ability to serve their customers, while
providing enough room for expansion. In the early 2000s, Todd, Terry and Trent Morrell transitioned
into leadership positions within the company, with their mother and father stepping down to work in
the company on a part time basis. Morrell Companies is now a full service carrier which offers a vast
variety of standard and specialized transportation services. They have been at this location for over
fifteen years, and choose to continue to expand their operations and create new jobs for the Elk River
community. Last year, their current facility paid $91,054 in taxes, and they have contributed a total of
$927,606 in taxes since 2003.
Their new facility is anticipated to generate $34,200 a year in property taxes, bringing their total tax
contribution to over $125,000 annually.
Proposed Project
Morrell Companies has seen consistent growth over the years, and would like to purchase Lot 1, Block 2
of Elk River's Nature's Edge Business Center to expand their operations. The 4.08 acre parcel is adjacent
to their current facility and is the perfect location to expand their existing facility. Terry Morrell, one of
the owners of the company, is proposing to build a 13,824 square foot facility. The facility will provide a
wash facility, light duty maintenance and office space for the growing company. The building is
positioned on the property to maximize safety of the business for all drivers, customers and employees.
They currently employ 123 full -time equivalent jobs (105 FTE, 35PTE) with an average hourly wage of
$28 and anticipate hiring 8 new employees, paying an average of $23.21 an hour, within the next two
years, as a direct result of this expansion.
On March 24, 2014, the Morrell project team met with staff to discuss the site plan and solicit initial
comments. Per this meeting, as a result of the added flexibility requested per the site plan, Morrell
Companies have included the following added features to enhance the project per staff comments:
® The building setback has been increased from 10' to 15'. Morrell has laid out various scenarios,
and while the 10' setback is ideal for facility optimization, the change was made to better suit
staff comments. Moving the building any further east would prevent the business from
operating.
• Morrell Companies is proposing to add a total of 33 trees to the entire western /northern
portion of the property; 17 overstory, nine ornamental and eight coniferous. Approximately 573
feet of the project perimeter includes existing mature trees. There is a proposed rain garden
and 3' of shredded mulch included around the new plantings. Additional details can be found
on the attached landscape plan.
• Staff suggested providing screening for the mechanicals on the rooftop; after extensive research
and discussion with the builders, it was determined that screening often results in tears in the
roof membrane, leaking, etc. The rooftop units will be carefully positioned to minimize visibility
from the road. Current proposed placement will be screened by the roof height if standing on
Twin Lakes Road (west of building).
• Staff expressed concern over the proposed milling overlay. Please see attached pictures of
asphalt millings used in a local commercial parking area /yard. The base would consist of 6"
recycled gravel and then 6" of asphalt milling. Asphalt millings may be used to construct, or
repave, needed roadway or vehicle use areas such as parking lots if such application is
performed when the material is sufficiently hot to make the asphalt pliable to bind the millings
particles on application. This process is similar in consistency and performance to an integral
asphalt -paved surface such as a road. Rolling the surface will not only serve to permanently
rebind the milling particles into the hot asphalt matrix to prevent erosion but also will ensure a
flat paved surface suitable for vehicular use. With Morrell Companies relationship with local
asphalt company's, these "hot millings" will be easily obtainable for this project.
• Energy efficiency building initiatives
c Discussions are currently taking place with Connexus Energy to include several energy
efficient building initiatives, including, but not limited to: solar program, solar panels,
LED lighting, optimal lighting control system (custom rebate), electrical car charging
stations
• Monument sign for Nature's Edge Business Center
a Being located on the north end of Nature's Edge Business Center, the site of Morrell's
proposed expansion is a perfect location for an entrance sign into the park. Discussions
with the city indicated there is a concept sign (not yet designed) for the southern end of
the park; Morrell Companies would like to construct a sign to complement the city's
sign, and is open to working out an agreeable solution to the design, timing, placement
and construction of the sign.
What are the reasons /purposes for the proposed Zone Change?
The property is currently zoned Business Park, and would require a zoning change to allow the Morrell's
to expand their operations. Their current property is zoned PUD, and per staff's recommendation, a
rezoning to PUD is required to expand their operations.
What has changed to warrant the Zone Change?
On March 15, 2015, the Elk River EDA and City Council approved entering into a purchase agreement
(contingent upon rezoning and CUP approval) with Morrell Companies.
How is the request consistent with the City of Elk River Comprehensive Plan?
The zoning change request is consistent with the Comprehensive Plan in the following ways:
• This project will grow in a manner that preserves the qualities of the "small town" heritage, by
maintaining connectivity within the city through permitting an existing Elk River business to
expand to an area adjacent t its current location, where it's been for over 15 years.
• The project will make Elk River a complete place through attracting employment opportunities
and goods and services needed by the community and creating opportunities for people to live
and work in Elk River
• The Comprehensive Plan indicates that three aspects of Elk River's future require particular
attention: expanding the tax base, attracting jobs and encouraging redevelopment. This project
will address the first two aspects, as well as develop a city owned property which has been
vacant for over two years, bringing it onto the tax rolls.
• The Plan also indicates that property taxes remain the largest source of revenue for the City and
that retaining and attracting livable wage jobs has been an ongoing objective for the city; this
project will generate additional revenue, retain 123 jobs and create new jobs for the city. While
not listed in the comprehensive plan, Morrell Companies should be included within the top 20
employees of Elk River; employing more than the bottom twelve employers on the list.
• The project fully supports the Economic Development Strategic Plan as outlined in the
Comprehensive Plan: "Attract new businesses and support existing businesses to increase the
city's industrial tax base, commercial base and employment base."
• The project supports the 1711t FAST through supporting its employment focus by leveraging key
assets (Morrell Companies) that are embedded in the community to reinforce Elk River as a
regional hub for small to medium size firms in the NW metro region."
• This project supports the following objectives as outlined in the Implementation Section (p. 130)
in the Comprehensive Plan:
o Set retention of existing businesses and industries as a priority of the city's economic
development plan
Coordinate with businesses and industries to explore opportunities for the city to stand
out as a leader in sustainable business and community development
c Continue to promote and encourage the expansion of jobs and business growth within
the city
How compatible is it with surrounding properties?
Morrell Companies is located in an area of Elk River which the following, compatible businesses are
located: LaFebvre Trucking, Navco Trucking, Preferred Powder Coating, Sportech, Alliance Machine,
Medical Extrusion Technologies, Cornerstone Auto Resource Center, etc. Their proposed project will be
built not only to complement their existing facilities, but will be using building materials to complement
surrounding existing buildings.
What are the benefits to the City?
In addition to retaining a family owned businesses that has been in the Elk River community for 50
years, a substantial increase in tax base, the sale of a city owned parcel, and creation of jobs, the
attached economic impact study indicates that this project will, at minimum:
• The new jobs created will create five indirect and induced jobs paying an average of $36,628
annually, or $17.61Jhr.
• Increase consumer expenditures by $316,019 annually
• Bring 7 new residents to Elk River
• Bring 17 residents to Sherburne County
Current employment creates 76 indirect and induced jobs; a total of 199 people are currently employed
in the local economy because of Morrell Companies. Without these 199 jobs, 106 less people would live
in Elk River, and 266 less would live in Sherburne County
Community Involvement
In June of 2014, Morrell Companies donated transportation for Kaleb's Tree House, for the Make -A-
Wish- Foundation; six- year -old Kaleb has a life threatening blood condition, and his big wish is to have his
own treehouse, similar to the one in the movie The Sandlot.
They also have contributed to the new Minnesota Viking's Stadium through the transportation of the
monster crane; this is the 3`d largest of this type of crane in the world, and Morrell Companies handled
the transport with flying colors. The MN Vikings have photos of the crane and trucks on their webpage.
Lastly, Morrell Trucking donates money, dumpsters and miscellaneous equipment to the Sherburne
County Fair on an annual basis.
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