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8.0. EDSR 10-11-2004 ITEM # 8. 4110 City of Elk River MEMORANDUM TO: Economic Development Authority FROM: Catherine Mehelich, Director of Economic Development DATE: October 11, 2004 SUBJECT: Consider Recommendation to City Council on Land Use Amendment and Zone Change - Elk River Business Park Attachments • Site Plan—Tractor Supply and Maxsun Furniture • Preliminary Plat • Staff Memo from Director of Planning, Michele McPherson • 2001-2004 Economic Development Dept. Inquiry/Prospect Summary Report Background In order to allow for the construction of two retail prospects, the owners of Elk River Business Park, Fischer Sand& Gravel/Associated Investors of Elk River, have requested the following actions: • Land use amendment to change the land use of certain property from LI (Light Industrial) to HB (Highway Business) • Rezone certain property from BP (Business Park) to PUD (Planned Unit Development) • Preliminary Plat Approval of Elk River Crossing 5th Addition Issue The Planning Commission will hold public hearings on the three actions listed above at its October 26th meeting. As in the past, the EDA is requested to provide comment and a recommendation to the Planning Commission and City Council with regard to the proposed change from Business Park/Light Industrial. Representatives from the property owners will be at the meeting to discuss the proposed project. Proposed Project • The proposed Preliminary Plat is attached for review. The proposal combines the northeast parcel of Elk River Business Park Lot 1,Block 1 (5-acres) with the southern portion of Elk Elk River Business Park EDA Meeting October 11,2004 Page 2 of 3 • River Crossing PUD and subdivides them into two new lots. The new plat would allow for the construction of two separate retail showroom buildings,Tractor Supply and Maxsun Furniture. Access would be from both 179`h Avenue (customer traffic) and Industrial Circle (deliveries). Analysis and Recommendation Based on the EDA's mission to be the "Light Industrial Hub of the Northwest Metro", staff recommends that the EDA recommend denial of the land use amendment and rezoning for the following reasons: • The proposed project would remove 5-acres of readily available land for light industrial development. In 1996 the EDA and City Council strategically identified and rezoned areas for Business Park/Light Industrial use. With the exception of Mulvaney Point, all other Business Park land in Elk River does not have the infrastructure necessary to allow for development in a short period of time. The attached memo from Director of Planning,Michele McPherson provides information related to the recent Comprehensive Plan discussions surrounding the Elk River Business Park. • While the economy has slowed since 2001, neighboring cities have experienced a boom in industrial development. This is primarily due to those cities owning their own industrial/business parks. In an effort to make the privately-owned business • parks competitively priced with neighboring communities, the City has actively marketed the Elk River Business Park and provided Tax Rebate (Abatement) Financing to write-down the cost of land to industrial users. The attached Economic Development Department Inquiry/Prospect Tracking Report indicates a relatively constant amount of light industrial prospects that vary in project size over the past 3 and half years. The market is experiencing an upturn, as noted in last month's prospect report. • The proposed project interferes with the intent of the Business Park zone for light industrial uses. During the 2000 Strategic Industrial Marketing Plan process, Duckor &Associates was told by several light industrial interviewees that they chose to not locate in Elk River due to the perceived amount of retail/service businesses in the original industrial park areas of Elk River. • The East Elk River development and construction of Twin Lakes Road was with the purpose and intent of creating areas for light industrial development,including Elk River Business Park and the EDA's purchase of the Brown property. The Contract For Private Redevelopment between the EDA and the owners of Elk River Business Park, dated July 30, 1999, defines the "Business Park Project" as follows: "..the development of approximately 200,000 square feet, and the provision for development of an additional 100,000 square feet, of light industrial building space • on the Business Park Property, together with all of the roadways,parking facilities, F:\SHRDOC\EDA\TIF\TIF19\10.11.04 eda.doc Elk River Business Park EDA Meeting October 11,2004 Page 3 of 3 • walks,landscaping,utility and other onsite improvements necessary in connection with and in order to facilitate development of the Business Park Property." As part of the agreement a Development Schedule was based upon full build-out of the Elk River Business Park. City Attorney,Peter Beck will be at the EDA meeting to answer questions related to the 1999 Development Agreement. • • F:\SHRDOC\EDA\TIF\TIF19\10.11.04 eda.doc • • i . . - , _____ . . - . . _ 2 1 16 ® � A D 9 D n . • /J I I y 0 ti9 /tim O _, I a r, b. . ,,..,,,_..,...._,..___ Ij 1 / I----i ( --I\ ,-. " m 7°• CI 1 ri 2a ►—' I Z � w7n DRIVE�IN Cn I• ! •P o / v (.0 / ,7, or D K / w 7 Z DOCKS . / — 7-ti I— 1 I > r l / /T n I -2 / / 1 / / / alo -co / 7-4 lir 1 n ! . / / / m 1111 I� _ 'f�s<, / ss)� ° 1/ • m NT iV O x TR D u c F, N �I Ifi\ z N�—I FNT JL J / _ . . ,- __ . . 7_y )ii. „7.--) ,,, STREET // i' ' �'L70 tl / Eit I rig ,,1,1! ilrigs. („ ,Tp' A R L C A H M i P T E E R c T r s 6,3 ra U) 1 1k • • • N I— W Z Z W .co W Z ZO W =2 ....7J CC 3 2^ U tt �i IR ! , ' !I w oy.I �— NZ8 YO gNC —' --- -- u w L�zw wo G10 N mry i5�'hM nI <N X Z O J �VI �� i I )i I 3 moo_ 1 La oaz mo w �od :z LL il ! o om r ( I 0 -°o Z ! 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I ) / ',,,'''-- rrr1/ Ici W / Cr) r♦ u,O I/ / I J ci 11] • to Oco , (I r♦/ / I I m mea cow `M� _ I L i t Z i Urn _ __(.___\___(.___\_ — — _- °co _/ re;'46L t - WZ BAl.LZ 00N r_y `., y I/ rY^ / 11� HMON L _ 90'£9Z d I o !0 �F\p•SAN 1,--- I— t' t 'J) ° 1t = L) 1 I os Ti 1.0 o oma I \ / --' I NN1/ / RD / I / / (-r_ � 01b / V 6, b I yS$/ 3� as � ‘•\‘•\`'3- `/ X0A/ / I / • L i 1 / 09 �p X60 / O Ino / I 00 2/ / I ry:8 215 / I o; 4=45°12,39 __ `Orn J z 3„19b,17Z°ION Item # 8 i1k ity River MEMORANDUM TO: Economic Development Authority FROM: Michele McPherson;'Uirector of Planning DATE: October I I, 2004 SUBJECT: Land Use and Zone Change — Elk River Business Park Associated Developers of Elk River and Elk River Business Park are proposing to replat lots located in Elk River Crossing and Elk River Business Park in order to provide lots for two retail facilities,Tractor Supply and Maxsun Furniture. In order to accommodate these retail • uses, the lot in Elk River Business Park,which is guided Light Industrial and zoned Business Park,must be re-guided to Highway Business and rezoned to Planned Unit Development. During the 18-month Comprehensive Plan update process, Hoisington-Koegler, Inc., the City's consultant,identified three future land use plans. They were: the Current Plan concept;the Market Trends concept;and the Guided Growth concept. In the Current Plan concept, the area in question was identified as Light Industrial;however,the Guided Growth and Market Trends concepts identified this area as Highway Business. Strong discussion during the review of the Draft Comprehensive Plan indicated a desire on the part of the City to maintain the Light Industrial land use designation for this site. As the Authority is aware,the City recently adopted the update of the Comprehensive Plan. The Plan, after much discussion,identified this area to be guided Light Industrial. This is the only area in the City with infrastructure in place to site an industrial prospect. Recommendation Given the fact that the Comprehensive Plan was recently adopted (August 16,2004),and has not yet even been distributed, staff recommends that the land use designation remain as Light Industrial. • S:\PLANNING\Case Files\2004\P 04-22 E R Crossing 5th\EDA memo 10-11-04.doc ./i tifk ---1 fl'( ., River 13065 Orono Parkway Economic Development Department Elk River,MN 55330 Inquiry/Prospect Tracking Report 2001 2002 2003 Jan-Aug'04 Total Inquiries 75 48 75 67 Commercial 30 17 29 21 Industrial 45 31 46 41 Light Industrial NA 21 34 20 Heavy Industrial NA 10 12 4 Distribution/Warehouse NA NA NA 3 Commercial-Service NA NA NA 14 Other NA NA NA 5 Nature of Light Industrial Inquiry • Lease Space 12 6 10 6 Land/Building 28 13 9 13 Other (info/$) 5 2 11 1 Light Industrial Size Small (Less than 10,000-sf) 16 5 5 8 Medium (10,000-sf to 29,000-sf) 10 13 9 5 Large (30,000-sf+) 13 6 6 5 Other (spec/info) 6 3 11 2 Active Prospects 10 7 6 9 Located in Elk River,cumulative 2 1 3 6 NA/Unknown 29 10 19 Located Site Elsewhere 7 5 3 2 Big Lake 2 1 Ramsey 1 Other 5 4 2 2 • Phone:763.635.1000 Fax:763.635.1090 F:\S HRDOC\EDA\PROSPECT\2004 Inquiries\2001.2004summaryrpt.doc www.ci.elk-rivermn.us ..J11/ • City of Elk River MEMORANDUM TO: EDA Subcommittee Members Incubator Advisory, Finance and Marketing FROM: Catherine Mehelich, Director of Economic Development DATE: October 5, 2004 SUBJECT: EDA Meeting - October 11, 2004 to Consider Adoption of the 2004-2007 Economic Development Strategic Plan Attachments • Staff memo dated October 11, 2004 to the EDA • In March and May 2004 the EDA subcommittees participated in two work session discussions for the Economic Development Strategic Plan Update. Jim Brimeyer facilitated the work sessions. Additional participants included the EDA, City Council, HRA, and city staff. The EDA will consider adoption of the attached 2004-2007 Economic Development Strategic Plan at its regular meeting on October 11, 2004 at 5:30 P.M. at Elk River City Hall. Members of the various EDA subcommittees are welcome to attend to provide any additional input on the priority issues and strategies identified within the Plan. If you cannot attend the EDA meeting and wish to provide additional input,please contact me at 763/635-1041 or provide your comments in writing via email at cmehelich@ci.elk- river.mn.us The EDA appreciates the participation of its subcommittees in developing the 2004-2007 Economic Development Strategic Plan. • City of Elk River MEMORANDUM TO: Economic Development Authority CC: EDA Subcommittee Members Incubator Advisory, Finance and Marketing FROM: Catherine Mehelich, Director of Economic Development 17 DATE: October 11, 2004 SUBJECT: Consider Adoption of 2004-2007 Economic Development Strategic Plan Attachments • • Discussion Notes from the 2004 Strategic Plan Work Sessions • 2004-2007 Economic Development Strategic Plan Background The Economic Development Strategic Plan provides a framework for the Commissions to work within and focuses staff energies on those priority areas important to the economic health of the City. The original Strategic Plan was adopted in May 1997 with participation from a variety of community leaders. The Strategic Plan was modified in 1999 by the EDA, HRA and City Council to reflect a reorganization of priority issues In March and May 2004 the EDA participated in two work session discussions for the Economic Development Strategic Plan Update. Jim Brimeyer facilitated the work sessions. Additional participants included the City Council, HRA, and EDA subcommittees Incubator Advisory, Finance,Marketing, and city staff. Discussion notes from the work sessions are attached. 2004-2007 Priority Goals and Strategies Following is a comparison of the 1999 issues and those issues most recently modified by the committee: 1999 Issues 2004 Issues 1. Industrial Base 1. Industrial Development 2. Business Retention & Growth 2. Central Business District (CBD) • • 3. Marketing Strategy 3. Transportation 4. Develop/Redevelop East Hwy 10 4. Commercial Development and the Central Business District 2004-2007 Economic Development Strategic Plan EDA Meeting October 11,2004 Page 2 of 2 41) The 2004-2007 Strategic Plan was modified since the July EDA meeting in which the EDA provided input on Transportation and Commercial Development strategies. Staff will provide a brief presentation of the priority goals and strategies identified in the attached 2004-2007 Economic Development Strategic Plan. The strategies are the action steps which allow staff to move forward to complete research on various issues and bring information and recommendations back to the EDA, HRA and City Council regarding such issues as appropriate. If there are specific action steps that a majority of the EDA Commissioners are in disagreement with, then these steps should be removed from the Plan. . Action Requested Staff recommends that following the EDA's feedback on the modified Plan and its strategies, that the EDA then consider adoption of the modified 2004-2007 Economic Development Strategic Plan. Following the EDA's adoption of the Plan the HRA and City Council will be asked to consider the modified Plan at their upcoming meetings. • • F:ASHRDOC\EDA\STRATPLN\2004 Update\10.11.04 EDA.doc City of Elk River • Economic Development Strategic Plan 2004-2007 Work Session Notes PRIORITY ISSUE #1: INDUSTRIAL DEVELOPMENT What is the issue? - Type of development preferred - Manufacturing (value added, highway) - How to increase the tax base - How to increase the employment base Why an issue? - Nothing is happening - Not staying competitive Consequences of doing nothing: - May lose existing businesses - Continue to have empty business parks - The debate goes on.....and on.... VISION ALTERNATIVES Parks are filling in with "desirable businesses" What makes them desirable? - Job type - Benefit program - Career opportunities - Retirement plans - Household supporting wages - Diverse services/products - Quality construction - Utility costs are reasonable - Land costs are "affordable" BARRIERS • Cost of land • Offers from other cities ak • Reluctant owners (to sell land) • Ability to provide utilities on a timely basis F:\SI-IRDOC\LDA\STRATPLN\2004 Update\elkedaresultsUPDATE.doc PRIORITY ISSUE #1: INDUSTRIAL DEVELOPMENT • STRATEGIES Expand/grow existing businesses Reduce the cost of development - Land cost Utilities Use city-owned land - Make utilities available Have options available - Joint marketing with private owners - Designate several locations for businesses - Develop a "price point" policy Develop a more generous incentive program Provide an opportunity for owners to be part of the development 411 Consider City ownership of all parks, financed over a multi-year period Develop a program to purchase portions of private parks over time—with options to purchase additional land 4110 r:\SHRDOC\LDA\STRAT PLN\2004 Update\elkedaresultsUPDATE.doc • PRIORITY ISSUE #2: CENTRAL BUSINESS DISTRICT What is the issue? - Method to define the boundaries - Determining preferred uses Why is it an issue? - Area is divided—no connection - Lack of an overall plan - "Historical"issues Consequences of not addressing: - Lose ties to the City's past - Lose "historic" structures - No connection to the river - Lose "traditional" uses - Minimum opportunity for desirable redevelopment VISION/ALTERNATIVE New development/redevelopment - The Bluff Block - Jackson Square - Development north of the tracks - Long range plan for entire CBD Storefront rehabs Rear access to businesses Orientation toward the river Pedestrian orientation Service,boutique uses BARRIERS Lack of overall plan in "manageable chunks" May lose some existing businesses 4110 Physical separation (tracks, highway) of the area r:\SHRDOC\EDA\SI'RATPLN\2004 Update\elkedaresultsUPDATE.doc 4110 PRIORITY ISSUE #2: CENTRAL BUSINESS DISTRICT STRATEGIES Develop long rang plans with "manageable chunks" Develop list of"preferred" uses - Office - Mixed use - Residential - Specialty retail - Restaurants/bars Incentive programs developed Options for connecting the areas S • r:\SHRDOC\PDA\STRATPLN\2004 Update\elkedaresultsUPDATD.doc PRIORITY ISSUE #3: TRANSPORTATION What is the issue? - Increasing amount of traffic causing congestion - Local and regional connections - Transit (public) - Loss of available land for road systems as it becomes developed Why an issue? - Congestion at peak times - Specific areas of poor traffic flow daily - Lack of jurisdictional control and input on plans Consequences of doing nothing: - Development opportunities bypass Elk River - Customers/residents/businesses perceive traffic as problem in the community and leave Elk River - Public safety - MnDot plans could isolate/limit access to areas (e.g. downtown) VISION ALTERNATIVES 3-5 years 411) - Better traffic flow - Proactive planning and guiding of development based on various needs (industrial, commercial, residential, commuter,public safety, etc) - Alternative east-west route(s) to Hwy 10/160 BARRIERS • Limited availability of undeveloped land • Cost of infrastructure/operations • Time to plan/design/build • Cost of acquisition/relocation of existing properties • Roads with issues are not necessarily under the City's jurisdiction • Long term—MnDot Plan for Hwy 10—20 years • F: Update\elkedaresultsUPDATE.doc PRIORITY ISSUE #3: TRANSPORTATION • STRATEGIES Local proactive leadership role to generate improvements • require connections, service roads • limit development by land use(interim uses to preserve corridors) • make unpopular improvements to existing roads Alternative route(s) for East-West connections;partner regionally No bypasses Encourage service drives along areas of commercial development (eg East Hwy 10) Proactive planning in areas with redevelopment/development opportunity, consider transportation connections of area as part of the plan (eg Arrow Building Center, Cretex and Contour Mold area) Better accessibility for businesses along Hwy;redevelop accesses Utilize City's Transportation Plan • EDA role?? Identify transportation planning partners and roles Council Planning Dept/Commission Engineering EDA—as advocate (eg oppose bypasses, not in best interest of the city's economic growth) 1110 F:\SFIRDOC\EDA\STRATPLN\2004 Update\elkedaresultsUPDATE.doc PRIORITY ISSUE #4: COMMERCIAL DEVELOPMENT • What is the issue? - Appropriate locations for additional commercial development - Types of desired commercial development - No one wants to locate commercial on Hwy 10 (east/west) - Large retail or retail clusters require substantial sizes of land Why an issue? - Community interest in more options - No land left for development (nearest is gravel mines and East Hwy 10) Consequences of doing nothing: - Residents will shop where there are more options i.e. other cities - Land will develop as residential (less tax base) - Existing businesses may move to other cities with critical demand - Development opportunities will bypass Elk River for other communities VISION ALTERNATIVES - Identify the desired types and sizes of commercial development • - Develop planned commercial corridor(s) that provide development/redevelopment opportunities to guide future inquiries - A focus on Hwy 10, retain the existing commercial on Hwy 10 and add to compliment the area - Identify areas for desired commercial to go,what are the barriers to locating there now,how to get them where we want them BARRIERS • Limited availability of undeveloped land • Redevelopment/relocation costs • MnDot Transportation Plans (interchanges) • Timing of market demand and interest F:\SHRDOC\EDA\STRATPLN\2004 UpdatecelkedaresultsUPDATE.doc PRIORITY ISSUE #4: COMMERCIAL DEVELOPMENT STRATEGIES Focus area study of the gravel mining area to identify commercial sites. Identify areas for redevelopment and determine priorities. Provide incentives to lure desired businesses to locate in areas that the market is not interested in at this time. Explore/consider subsidy/incentives for desired uses and areas Consider for commercial overall or in certain areas What do other cities do? Eg Maple Grove redevelopment of gravel mines to retail,was TIF used? Consider the Chamber to market the areas Support the commercial areas identified in the Comprehensive Plan CoRd 33 &Hwy 169 Elk River/Ramsey border • Be proactive to designate large area for"shopping mall";market when ready for desired use Like "Arbor Lakes" —should be walkable and integrated • F:\SI-IRDOC\EDA\STRATPLN\2004 Update\elkedaresultsUPDATE.doc ' ,,mx 4,,:j,, ,. *,,,*„„,„: , ,Vr fi,-Z: .7',I'Lr-'. City f River 0 Elk ' IM:f 4..,,,,'-'4--,•::---n::,1,<I6,1,7--,.4,'",aWi,,,i':;-7:,...., :E2'1,;•.,...„,, "7-''''"mLL2k,t4,,,,,„,,A- :4,-, ...,,o),,x;DEI:EM: • - _ 2004-2007 Economic Development Strategic Plan • Revised October 2004 Revised November 1999 Original Plan Adopted May 1997 411 S RiverElk ia5' .. t.x1 Tc.3'tk rat;..>".._ <5,317r Y.>c,„a.,w.ein.x `A historic river community serving as a regional center. with a favorable location near the Twin Cities metropolitan area" Our mission is to actively participate in economic development by utilizing available resources to leverage viable and healthy investments in our community. Such investments will create diverse job opportunities as a result of a stable and growing business and industrial base. We will strive to provide quality services, maintain a favorable tax rate, supply full-cycle housing options for our residents, and foster an environment that will result in substantial growth of our local economy. Modification C.Ofll:flittee r :ate r w aZir I, City Council Economic Development Authority Housing and Redevelopment Authority EDA Business Incubator Advisory Committee EDA Finance Committee EDA Marketing Committee Facilitator: Jim Brimeyer, The Brimeyer Group r Major Issues and Goals , NA-71-1 'w Ama .1r.` X 1 11 Industrial Development • Attract new businesses and expand existing businesses to increase the city's industrial tax and job base 14 Central Business District (CBD) • • Undertake planning and activities that facilitate redevelopment in the Central Business District $1 Transportation • Advocate and support proactive planning for improvements to the local and area transportation system $4 Commercial Development • Encourage desired commercial development in identified areas • • I . IndustrialDevelopment rt Make available several location options for industries • Obtain joint development agreements for Elk Path Business Center and Elk River Business Park • Consider options to reduce landowner cost of development • Develop a "price point" policy • • Consider making current City/EDA-owned land available (Brown, Cargill) • Complete initial phase of roads and utilities in all parks • Consider a program to purchase portions of private parks over time — with options to purchase additional land • Consider unique attributes/vision for each park (ie. "Elk River Energy City Industrial Park", Northstar Corridor) 411 S I . Industrial Development N Continued LIT112111 WS: 14 Develop unique and more generous business incentive programs (TIF, Tax Rebate Financing, Micro Loans, etc.) U Maintain consistent marketing image as "The Light Industrial Hub of the Northwest Metro", materials and methods. 14 Maintain and build networks with banks, brokers, chamber, existing businesses, media, and others. U Maintain annual Business Retention & rapansion visits with participation from elected/appointed officials and Chamber, promote expansion incentive programs. U Maintain prospect/inquiry tracking and distribute semi- annual results to the EDA and Planning Commission. U Utilize DEED's Manufacturing Week to showcase existing firms. 14 Utilize GIS to manage data of industrial real estate 14 Maintain inventory of available industrial land/buildings 14 Maintain commitment to the Business Incubator Program • Identify developer and location for "next generation" incubator building • Explore continued program funding options • II, Central Business District (CBD) i;r1,7271MILS ACFZEDI 12 Complete long range master plan for guiding vision of the CBD; break down activities into "manageable chunks" rt Identify priority redevelopment areas tt Develop list of "preferred" uses, including: s Office • Mixed use • • Residential • Specialty retail • Restaurants/bars tt Consider incentive programs, in addition to Micro Loan, for commercial building rehabilitation tt Design connections (to river, businesses, Lions Park, schools, etc) • III . Transportation 11 ,i„s,,,. .,m; G,z, ZalIMI ,R `�Y5i,,>;...,s ., », PA,,.. B ,a t1,.,.. ,' E„ rt Undertake a local proactive advocacy role to generate improvements • Consider connections, service roads within developments ■ Limit development by land use (interim uses to preserve corridors) • Make necessary improvements to existing roads • Consider alternative routes for east/west connections (partner regionally) • • Object to any Hwy 10 bypass of Elk River • Encourage service drives along new commercial areas (e.g. East Hwy 10) tt Consider transportation improvements in areas with redevelopment/development opportunities tt Consider transportation connections/traffic flow for problem areas (e.g. Elk River Concrete and Contour Mold area) 14 Accessibility for businesses along Highways 10 and 169 • Support the City's Transportation Plan; support the Planning Dept and Engineering staff in the Plan's implementation. • ; '`,%:174,11 S IV. Commercial Development ',"`;'11,111 tillnWZZI1V3'N.112:, ,,,,',za-I',L:MISSIEL7:" afifiZt*e tt Consider focus area study of the gravel mining area to identify commercial sites U Consider development of commercial areas identified in the Comprehensive Plan • Co Rd 33 and Hwy 169 • Elk River/Ramsey border U Identify areas for redevelopment and determine priorities U Designate large area for "shopping mall" or clustering of retail that is pedestrian friendly and integrated U Utilize the Chamber of Commerce for marketing availability of commercial areas (land and building space) U Explore/consider neighborhood commercial (the "corner store") U Explore incentives to lure desired businesses to locate in areas that the market is not interested in at this time (e.g. Hwy 10)