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8.0. EDSR 10-08-2001 �j Item 8. River 13065 Orono Parkway Elk River,MN 55330 MEMORANDUM TO: Economic Development Authority FROM: Michele McPherso Director of Planning DATE: October 2, 2001 SUBJECT: Consider Amendment to Business Park District Standards Regarding Uses Attachments • Existing language - Business Park District • • Proposed language - Business Park District • October 2, 2001 Letter from Brookstone, Inc. Overview In 1995,the City created the Business Park District to encourage a higher level of industrial development. The district's purpose statement and uses clearly indicate the City's desire to promote high value buildings and the creation of jobs. The development agreement with Brookstone, Inc. was executed in 1999. Analysis The current language limits warehouse uses to 30%of a permitted use unless a conditional use permit is granted. Mr.Martens,representing Brookstone,Inc.,has expressed a concern with this limitation as well as the lack of showroom and repair as uses in the district. Staff has been working with Mr.Martens regarding an ordinance amendment to allow uses more typical of the current industrial market within the Business Park District,however, there is a need to maintain the overall purpose of the district which is to encourage businesses which generate a high number of jobs per square foot,rather than predominantly warehouse-type uses. The changes proposed to the Business Park District would allow: • Phone:763.441.7420 Fax:763.441.7425 www.ci.elk-river.mn.us Memo to EDA re Business Park Standards October 8,2001 Page 2 • 1. Warehouse space up to 50%of the entire building or 50%of an individual tenant space in a multi-tenant building. 2. Showroom uses. 3. Repair and maintenance uses excluding auto repair. Also proposed are definitions for warehouse and office/showroom uses. Mr.Martens has submitted a letter outlining his position regarding the language proposed by staff. Specifically, under the conditional use permit amendment, he would like to see a higher percentage allowed than 65 percent and he would also like to aggregate the warehouse space in a building and eliminate the analysis of individual tenants in a multi-tenant building. Staff continues to be concerned that the intent of generating high numbers of jobs in the Business Park District is being "watered down" even by the language proposed by staff. Recommendation Staff requests that the Economic Development Authority review the attached information and provide direction to staff regarding the amendments to the Business Park District. • • S:\PLANNING\MICHMC\MEMOS\EDABPstandards.doc Existing Lsng uag® 16. B-P Business Park District (Existing Language) STATEMENT OF PURPOSE: The Business Park District is established to encourage a planned, integrated environment for certain industrial, office, and commercial uses which are compatible with, and compliment each other as well as the surrounding land uses. The underlying land use designation within the district may vary, either light industrial or highway business. Development within the Business Park district will correspond with the land use designation. Industrial and office uses allowed where the land use designation is light industrial, and commercial uses allowed where the land use designation is highway business. It is the intent of this ordinance that development reflects common themes using compatible architectural design and consistency in signage, landscaping, and lighting. It is also the intent to encourage businesses which generate a high number of jobs per square foot rather than predominately warehouse type uses. A. Permitted Uses i. Permitted uses allowed when the underlying land use is light industrial: a. Light Manufacturing . b. Research and development laboratories c. Government, business, and professional offices d. Mail order operations e. Telecommunication operations f. Sherburne County fair ii. Permitted uses allowed when the underlying land use is highway business: a. Health athletic clubs b. Personal service establishments c. Financial institutions B. Accessory Uses: i. Off-street parking lots or facilities ii. Private recreational facilities • iii. Public shelters and essential services iv. Retail Sales provided the following conditions are met: a. The retail sales activity is not located in an administrative office facility, but is located within a business, the principle use of which is not commercial sales. b. The retail sales activity shall not occupy more than fifteen (15%) 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 is related and subordinate to the principle use. d. No sign identifying or promoting that retail sales occur within the building shall be visible from outside the building. C. Conditional Uses: i. Conditional uses allowed when the • underlying land use is light industrial: a. Any permitted use which involves more than 30% warehouse space b. Vocational, technical and trade schools c. Loading areas/overhead doors when located in front yards d. Above ground storage tanks ii. Conditional uses allowed when the underlying land use is highway business: a. Hotels and motels b. Licensed day care facilities c. Retail shops and stores which compliment and serve the Business Park subject to the standards set forth in 2 (j ) below. d. Motor vehicle specialty service stations e. Loading areas/overhead doors when located in front yards • f. Multiple tenant buildings g. Restaurants (Class I) . ProposE)d Lelnouao 16. B-P Business Park District STATEMENT OF PURPOSE: The Business Park District is established to encourage a planned, integrated environment for certain industrial, office, and commercial uses which are compatible with, and compliment each other as well as the surrounding land uses. The underlying land use designation within the district may vary, either light industrial or highway business. Development within the Business Park district will correspond with the land use designation. Industrial and office uses allowed where the land use designation is light industrial, and commercial uses allowed where the land use designation is highway business. It is the intent of this ordinance that development reflects common themes using compatible architectural design and consistency in signage, landscaping, and lighting. It is also the intent to encourage businesses which generate a high number of jobs per square foot rather than predominately warehouse type uses. A. Permitted Uses i. Permitted uses allowed when the underlying land use is light industrial: a. Light Manufacturing • b. Research and development laboratories c. Government, business, and professional offices d. Mail order operations e. Telecommunication operations f. f. Sherburne County fair g. Warehouse space not exceeding fifty percent (50%) of the entire building or an individual tenant' s space in a multi-tenant building h. Showroom Space i. Repair and maintenance, excluding auto repair ii. Permitted uses allowed when the underlying land use is highway business: • a. Health athletic clubs ib. Personal service establishments c. Financial institutions B. Accessory Uses: i. Off-street parking lots or facilities ii. Private recreational facilities iii. Public shelters and essential services iv. Retail Sales provided the following conditions are met: a. The retail sales activity is not located in an administrative office facility, but is located within a business, the principle use of which is not commercial sales. b. The—retail sales activity shall not occupy more than fifteen (15%) 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 is related and subordinate to the principle use. d. No sign identifying or promoting that retail sales occur within the building shall be visible from outside the building. C. Conditional Uses: i. Conditional uses allowed when the underlying land use is light industrial: a. Any permitted usc which involves more than :'0` ware ouce space Warehouse space exceeding fifty percent (50%) of the total building floor area or individual tenant space in the case of a multi--tenant building, up to a maximum of sixty-five percent (65%) b. Vocational, technical and trade schools c. Loading areas/overhead doors when located in front yards d. Multiple tenant buildings e. Above ground storage tanks . ii. Conditional uses allowed when the underlying land use is highway business: a. Hotels and motels b. Licensed day care facilities c. Retail shops and stores which compliment and serve the Business Park subject to the standards set forth in 2 (j ) below. d. Motor vehicle specialty service stations e. Loading areas/overhead doors when located in front yards f. Multiple tenant buildings g. Restaurants (Class I) Warehouse space shall mean the space used for storing merchandise or commodities . The area occupied by the act of shipping or receiving merchandise shall not be included in the floor area calculation for warehouse space. • Office/Showroom space shall mean space that is utilized primarily for the display of products manufactured. Such space may or may not be finished. OCT Q 4 2001 BROOKSTONE,INC. • �= ; 7400 Metro Blvd.,Suite 212 Edina,Minnesota 55439 612.837.9167 phone 612.837.8010 fax Tuesday, October 02, 2001 Ms. Catherine Mehelich Director of Economic Development City of Elk River 13065 Orono Parkway PO Box 490 Elk River, Minnesota 55330 Dear Cathy: Further to numerous discussions with the City of Elk River's planning director, Michele McPherson, and our scheduled appearance before the EDA of the City of Elk River on Monday, October 8th, I am writing this letter to state the position of the Elk River Business Park owners with regard to the proposed modifications to the permitted and conditional use sections of the B-P Business Park District. Our response to date has been based upon concerns we have had with the • limitation on the amount of warehouse space in our office/warehouse buildings. We appreciate the opportunity to work together with you on this issue and to present our point of view to various approval groups. While we clearly understand the City's desire to maximize job growth and job opportunities within the city, from the very beginning, we envisioned both build-to-suit and multi-tenant office/warehouse buildings. While not in any way a firm plan, a conceptual plan showing buildings ranging from 30-60,000 square feet were laid out in the various parcels as we worked our way through the approval processes. Throughout the Twin Cities, office/warehouse buildings are a mix of, to one degree or another, finished and unfinished spaces. The finished spaces and these are generally all permitted uses under your zoning by-laws, include offices, showroom and laboratory and other highly finished work areas. The unfinished areas, that is the warehouse portion of the office/warehouse term, include pure warehousing and distribution, shipping and receiving facilities, light manufacturing, repair and maintenance, vehicular storage, and research and testing. On some occasions, the unfinished area is upgraded to include air conditioning, a higher level of lighting, etc. and in some cases, whether for manufacturing or warehousing, is left in a more warehouse form. While manufacturing is generally a part of most business parks, given that approximately 16% of overall employment in this Country is accounted for by the manufacturing sector and given further the significant amount of manufacturing that has moved overseas, the dominant use in the unfinished portion of office/warehouse buildings is not manufacturing but all of the other industrial uses mentioned above. The finish percentages for office and showroom spaces are generally higher in locations within close proximity to downtown areas and major metropolitan landmarks such as airports, major shopping facilities, and also at locations having some commercial aspect to them. 11111 This location does not offer the proximity to major landmarks but it does have a commercial aspect to it given the exposure of at least some portion of the buildings to highway 169 together with the adjacency to the retail development to the north. However, generally, the kinds of REAL ESTATE ADVISORY SERVICES,INVESTMENT AND DEVELOPMENT • office/warehouse buildings envisioned for this location would not be finished greater than 25-40%. This leaves 60-75% of unfinished space and our concern is with limiting the use of this space in such a manner that we are unable to effectively market this property. Also, these are aggregate numbers. In individual tenant spaces, unfinished areas will range from 0 to 100%. We have always felt that your building codes could much more effectively regulate the issues at hand and meet your goals by requiring some kind of public hearing approval for buildings that are clearly designed as distribution buildings. For example, our first building is an 18' clear height with bay sizes of less than 5,000 square feet. The NAIOP definition of distribution is far outside those parameters. A distribution building would be in the clear height range of 24'-32' and have bay sizes ranging from 8-15,000 square feet with much greater depth than our first building has or that we anticipate having for other future buildings. If you deem it necessary to place percentage limitations on the amount of warehouse space, then we would request the following: • We would like to see the 50%limitation on warehouse space be viewed in aggregate for any particular building rather than on an individual tenant basis. This would allow more flexibility on our part with regard to marketing and individual tenant negotiations. The goals of the City would simply be established and achieved on an overall square footage basis rather than on an individual square footage basis. • • We would also like to raise the maximum percentage of warehouse allowed under the conditional use section from 65% to a higher number and simply not preclude an approval, for example, of a build-to-suit for a company that Elk River desires to attract to its community and under a specific percentage limitation would be precluded from doing so. We have written this letter in the spirit of working together with the City of Elk River in a positive and collaborative manner based upon the intent established when the development agreement was first negotiated and entered into. Our requests, we believe, do not deviate from those goals and are more in synch with market in general and also for this site, specifically. We are hopeful of a positive response when we meet before the EDA on October 8th and subsequent meetings with the planning commission and city council. If any additional information is required, please call me. • • •rytruly, 14-4Richard V. Martens President RVM/bb Cc: Michelealhialitionity of Elk River • Jim Winkels—Partner, Elk River Business Park, LLC Liza Robson—Partner, Elk River Business Park, LLC Tony Gleekel-Siegel, Brill, Greupner, Duffy&Foster, P. A. • ^�/ City of Elk River MEMORANDUM TO: Economic Development Aut'rity FROM: Pat Klaers, City Administr• '. DATE: October 8, 2001 SUBJECT: Land of Lakes Choirboys Request For Donated Land and Business Park Property Worksession There are two main issues that need to be addressed at this worksession and each issue has a number of discussion points. This needs to be a worksession of the EDA and City Council as the land use and property ownership issues impact both groups. • There may not be sufficient time at the EDA meeting to discuss everything in as much detail as you would like. If this turns out to be the case then this discussion should be continued to the November EDA meeting. The October 8 City Council meeting is anticipated to last only about one and a half hours, so the EDA should feel free to meet a little longer than normal for their meeting. The first issue is that the city has had numerous requests for free land from very good and worthy organizations and these requests may continue as long as the city or EDA owns property. Most of the property that is available for development is business park (BP) property that is owned by the EDA. The City Council needs to hear the reaction of the EDA to the possible loss of BP property (south of Walmart/Home Depot) for "community" facilities. John Fitzgerald, Executive Director of the Land of Lakes Choirboys organization (and Executive Director of the Elk River Boys and Girls Club),has approached the city regarding a new facility for the Choirboys organization and the need for a site and free land for this project. The Choirboys are losing their current facility due to the MnDot interchange project on Highway 10 at the County Roads 14 and 15 intersection. The organization will receive funds for their loss, but these funds are not sufficient for both a facility and land.Additionally, the organization is having difficulty finding a site at a good location.John has approached the • city to see if there is anything that we can do to assist the Choirboys organization. . Mr. Fitzgerald has been a participant in the YMCA discussions and in the Center for Community Committee meetings (chaired by Don Heinzman) so he is aware of both the family/arts center and the YMCA proposals.As such,John knows that the city has offered the YMCA one of two sites and that the City Council has reacted favorably to the proposal from Director of Community Education Charlie Blesener for land for the family/arts center. In my discussions with John, I advised him that he has every right to come and present his request to the city, but that the only eight acre site we have is BP property east of Highway 169 that is owned by the EDA. This site was the Brown property that the city purchased with development fund money and which the EDA owns. By way of background information, five years ago,in 1996,the city made a commitment to the Minnesota Sports Federation (MSF) that it would give them land around the Lake Orono water tower (approximately six acres) for their facility provided that their financing was acceptable per analysis from our financial consultants. In the last year, the city has offered the same site to the YMCA along with an alternative site south of the Home Depot/Walmart area. This alternative site is EDA owned BP land. (The city advised MSF that if the YMCA selected the water tower site on the west side of Elk River then the city would work with MSF in order to locate a different site). Even more recently...the City Council reacted favorably to the request for land for the family/arts center. The number one location choice of this group would be the water tower site, but certainly they will accept any free land. The only other property available is BP property which the EDA owns. Finally,we are hearing a request from the Land of Lakes Choirboys organization for approximately eight acres of free land in order for them to locate their facility in Elk River. With this Choirboys request, there is only one site • of this size available and (again) this is the BP land out east. A question could be asked regarding whether or not all of these projects will really develop—but this may be a question for later in the process. Regarding the water tower site, the city is receiving more and more feedback that,in looking 20+ years in the future, there will be a premium need for this park and recreation land around Lake Orono and that we should preserve what we can as open space for future generations. Accordingly, the City Council needs to consider this issue and the possibility of none of these facilities being located at the water tower site. As you can see,land is in demand at good locations and with free land organizations can put more money into their facilities and make them bigger, better, and more functional, etc. The BP land has been secured for economic development (jobs and tax base),which makes the city more whole and complete;however, the organizations are requesting land to develop very significant cultural, recreational, educational, and/or social facilities that also help make the community whole and complete. I am not sure that the city or EDA should be giving land to the Choirboys organization,but I am also not sure how a distinction can be made between this organization, the YMCA, and the family/arts center. (Over the years, the city has provided"free" land to the Elk River Area Chamber of Commerce and the Elk River Boys & Girls Club by way of a long-term lease.) In dealing with the current requests, the city needs to know if the EDA supports providing BP • land to the YMCA, to the family/arts center, and to the Land of Lakes Choirboys organization.What is envisioned by some is a campus setting out east,whereby all or some of these facilities could be grouped together to serve the community. Besides dealing with this • immediate request, I think that the city and EDA need to put together a policy that will address future requests. Locating these facilities on BP property out east would reduce the inventory of land which the EDA owns by up to 50%. However, to offset this loss, the city has been working on a long- term (20 year) agreement with Cargill regarding their 1998 public improvement assessments, land use of their property, and a land donation to the city that may net us as much as 40-60 acres of developable property for BP projects. The exact amount of land is subject to some ongoing discussions and negotiations between Cargill and the Northstar Corridor group as it relates to the proposed maintenance facility. The property that the city would obtain is south of 171st Street next to Morrell Trucking. Additionally, the city is always exploring opportunities to enhance economic development and to obtain BP property much like what happened in the late 1990s when two west business park lots were purchased. This property is now the home of two office buildings. Furthermore, the city most recently indicated its desire to purchase another BP lot directly south and across the street of the Holiday Station. These type of efforts are likely to continue. The second issue and reason for this worksession deals with business park sites and development opportunities for the one and a half acre requests. This seems to be the majority of the requests which we are receiving and which there are no properties available. The East Business Park, controlled by Amcon, has lots for larger developments and plans for 50,000 square foot buildings so this area is not geared toward the smaller businesses. The West • Business Park is not scheduled to have one and a half acre lots available until further in its development scheme and this may be three to six years out. The Gagne property out west (and just east of the government center) on the service drive is ideal for one and a half acre development but the land price has been too high for the market. Under perfect conditions, the EDA would purchase this property and have about 10-12 lots of an acre and a half each for development. Issues regarding this situation include having money available for this acquisition. Another option for the EDA in order to fulfill this need may depend upon the decision about land donations. If the EDA property ends up to be only 20 acres of BP land, then a cul-de-sac could be constructed off of the new Twin Lakes Road and 10-12 lots that are an acre and a half each could be developed. This certainly seems reasonable and something to consider. In general,we have been holding this land until the West Park and the Amcon Park are further developed but we may need to do something now to address this development need. In the not to distant future,we should have Cargill property available to market but we have to see what is going to happen with the Northstar Corridor project. This land requires infrastructure improvements and overall this project is 5 years away except for a lot or two right on 171 Avenue. Regarding acre and a half lots without sewer and water,we currently have a request for a • subdivision of industrial property down in the southeast part of the city off of Jarvis Street. If this development moves forward then there will be a more than adequate inventory of sites for this type of development. • East Business_ , Park I-- \\ , East Business , viv MAIN Park Stats 1: , i\�``\ . _1E \ '-';=7,,,'-`,,,,---)1`, -;,,'-':.),\N-', i'yy7 N y \ e tair- Zoning: , ' , - i ,�' ` ' r I Business Park -\-11'. - '<' \t B. & ,� . \ Light Manufacturing 1-i ?, , vv ,t -------- -Office ' ( 4 k I is I_R&D � t i`° ✓ Acreage: ` k 85 Acres q. `,, \ } , k: i , , I I:_ \s , ' , t..,1 -4-:'_;;4'''''-'..', ,-- I Price: Negotiable: Build to z, - Suit ,,, - I 1 rt ,a i • Location: k 1 ', - - i` Northeast quadrant of }` ' 2- Highways 169 and 10 � � / 4 -- I, `: - 7 --- V Access: q _ Hwy 10 & 169 via Ty- - _ 1 fi ler Street ' s " i -:'-----/ , - — — ' 1. � to.. 1PROPOSm NORTHSTAR CORRIDOR Utilities: , - RAIL DEPOT sITE t saSewer ' ,� I Water y I ,;,�\, 1 'j �• ` J Electric i \�' ` ® — Gas �° + ,,�a 1iist, AVENUE �---7-L------------TA — Fiber Optic Elk River's East Business Park is located at the northeast quadrant Contact: of Highways 169 and 10. Brookstone, Inc., in partnership with Economic Development Amcon, is constructing build-to-suit owner occupied and multi- Department tenant office/warehouses in Phase I, which is subdivided into 763-441-7420 seven three - six acre lots. Phase II is owned by the City of Elk River and is currently unplatted. • The Light Industrial Hub of the Northwest Metro • West Business Park West Business Park Stats am = COA94ERCIAI — oning: a � td7 rnr 9FERHURNE ,444, t d Business Park ' -Light Manufacturing IT 4'`" 'F° " ` W'` -Office w waa.i GOVERNMENT CENTER -R&D Acreage: 79ACRESn 100 Acres Price: $1.50/sf- Industrial COUNTY ROAD x.30 $7/sf- Commercial • Location: U.S. Highway 10 Elk River's West Business Park is located on the west side of the city along U.S. Highway 10. The park is ideal for both small and Access: large scale development. Utilities, including water, sewer, electric, Highway 10 via Business Center Dr. gas, and fiber optic cable, are locate within the park. Access to the park and Highway 10 is simplified with controlled intersections Utilities: and a nine ton frontage road. Although the majority of the Sewer Water property is zoned for light industrial and office development, Electric several opportunities exist for commercial development as well. Gas Fiber Optic All parcels in the West Business Park are privately owned. Contact: Economic Development Department 763-441-7420 • The Light Industrial Hub of the Northwest Metro 4jiAKts LAND of LAK • 4 . CHOIRBOYS OF MINNESOTA, INC. C OJRBO's --J 'Minnesota s Singing Boys FOUNDED 1976 P.O. BOX 74- ELK RIVER, MN 55330 (763) 263-8880 September 24,2001 CRAIG CARMODY-ANDERSON Elk River Mayor Founder/Conductor Elk River City Council Members& JOHN D.FITZGERALD.JR. Economic Development Authority Members Executive Director FRANCIS D .STOCKWELL RE: The Land of Lakes Choirboys Artistic Director MARY JO BUETTNER Dear Mayor&Members of the City Council and EDA; Administrative Assistant The Land of lakes Choirboys has been a part of this community for over twenty- Board of Directors five years. During that time the choir has touched the lives of hundreds of young i e °and thousands of family members and residents of this°area and surround ng com 4u sties. PAUL OLSEN President It is with sadness that I must report_that just as our program is larger, stronger and better than it has ever been, are told by the State of Minnesota that our facilities SANDRA WEICHT and land are to be taken to accommodate the construction of an overpass. SY .. It is for this reason that the Board of Directors and staff of the Land of Lakes Di rs Choirboys would like to petition an audience with you to respectfully request eight to ten SAM BENTLEY acres of land from the City of Elk River so that we might remain here and not only JACK HOLMES h rebuild a better Choir facilitybut additional space that would be useable for this JOHN IN FRED OSS community at large. JACK M CONNIE ROSENDAHL Our plans would be to construct a building with office,meeting, storage and two JOHN C.WEICHT large practice areas so that our program can continue to grow. In addition we would Artistic Consultant create a commons area(with a kitchen)and a performance area that would accommodate four hundred to four hundred and filly people. Our new facility would provide this PROF.WOLFGANG POWISCHER community with a medium sized performance and meeting space to fill the gap between European Tour Coordinator the new large theater being constructed at the High School and their present soon to be GISELA TIEBE remodeled small theater. (Our request would also provide some common parking area for use by the Early Childhood Development and Arts Center). We believe that with your helpful donation of land we would then have the ability to start and complete this project in a timely fashion with the funds that will be paid to us by the State,the collateral and future sale of our remaining land(unusable as a Choir School)and a Capital Campaign of arts related foundations. We thank you in advance for your time and consideration of this project and hope that we are able to present this opportunity to you. ' .ectfidly Jack -, i �Imes • Bo. d President A NON-PROFIT CORPORATION • Visit us on the web at www.erstarnews.com • IA 11‘dnesday, March 7, 2001/ Elk River Star News / 13. Nall Ili if Roadproject nv spurs choir' tó ....._..„i„.„,,, . , ,,,,, \��{ ��� ,ft.y t i ,. T fid' •.,;„..,,,, N k` seek :‘t, new home 4 , i sar, Ir � � @ � t `' J '-',.",,,'..,1"'' , ,r "-.,'``,"'41‘,"'01,, \,rte ��S1 4 ,r ',,tootoo ,, �', ''' 7� ill , by Joni Astrup k kVA \ nWeAWaae. Wt&- "yam Associate editor ',-,0 Fl r' 1, $"z jl$t'q ,,,,, r, 1� ,,,.{, ,Wka�, , a, , The Land of Lakes �,,t., , 4i.',64,340kr1``F4t b � ,, �. "�_.' „ '�' ' s ma ,�.x, . Choirboys is looking for a >', ,a * \` , , �m � The Land of Lakes Choirboys is headquartered now at new home. , „iit, Highway 10 and County Road 15. It will be moving to Its current building at ”" ____.,__-'-,401F,°' ,r''' make way for an interchange. (Photos by Joni Astrup) Highway 10 and County ' Road 15 in Big Lake e, .' 4. `u,,k. Township ,willbe removed Risser said MnDOT staff Work could begin this fall A county road will be to make way for an inter- is reviewing the historical on another interchange change, moved slightly west to significance of the build- In another area inter- - Construction on the new avoid impacting Bailey ings. A consultant is work- , change project,' construc- t Station Cemetery. diamond interchange is ing on • that as well. Both tion could possibly begin scheduled to begin'in 2002, buildings have been'some- this fall on a diamond according to Roger;Risser, Fitzgerald said the build- what modified from •their interchange at Highway Minnesota Department of ing is poured concrete. original condition,he said. 169 and. County Road 9 Transportation (MnDOT) Moving it is not considered In another matter, the between Zimmerman and project manager, an option. county road will be moved Princeton, according o John Fitzgerald, the Fitzgerald said they don't about 150 feet to the west Risser of MnDOT. choir's executive director know yet how much they to avoid impacting the Under the plan the county and general;prefect, said will be paid for their prop- Bailey Station Cemetery,' road would go over the they have about 13 months erty. which is located south of highway. before they have to get out. Besides the choirboys Highway 10. The cemetery The only building affected "We are just looking at building, the Wingard craft was founded •in 1873. •is a seasonal fruit stand at every option we can," he store at the southwest cor- The interchange project is the southeast corner of the said. "If anybody has any ner of the intersection will estimated to cost $8 mil- intersection. It will be relo- suggestions,we're open." ' also have to be removed, lion. It could be completed cated. The • Land of Lakes according MnDOT's Risser. in 2002,with good weather The interchange is expect- Choirboys owns 12.7 acres The craft store is open in and no delays. ed to open in the fall of of land at its current loca- the spring and fall. The The county road will go 2002. The project is esti- tion. On the site is an old Wingards have no plans at over Highway 10 when the mated to cost $8 million. schoolhouse that is the this time to open the store interchange is finished. choir's headquarters. in a new location. I Iii, ., :, .... . . ; _ , A , 1 1 .., I1 1 1 I ��, 1 ii - , I - � ► — li „ -:,- ,---7--Z---- — ;, _ titigt 11 i -i / J !' 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Y 33 SOUTH SIXTH STREET MINNEAPOLIS, MN 55402-3796 PLANT 612 343-2800 M O O T Y FAX: 612 333-0066 WEB SITE: www.gpmlaw.com CONFIDENTIAL/ ATTORNEY CLIENT PRIVILEGE TO: Mayor Stephanie Klinzing Members of the City Council FROM: Peter Beck, City Attorney Re: Proposed Cargill Settlement Date: July 10, 2000 BACKGROUND • Cargill has operated its animal nutrition center("ANC") since 1958 on approximately 980 acres in the southeastern area of the City. Attached is a map indicating the location of the Cargill property. Most of Cargill's land is in crops, although Cargill does have a number of animals in a series of buildings located along 165th Street. In recent years, a number of factors have come together to cause some conflict between Cargill and the City. During the City's comprehensive planning efforts, Cargill opposed including any of its land within the city's urban services area (i.e., the area to which utilities are proposed to be extended). In response to this input, the portion of Cargill's property to be placed in the urban services area was reduced, but a significant amount of Cargill's land remained in the urban services area because of the City's desire to provide for urban services and development in the East Highway 10 corridor. In response to this decision, Cargill placed approximately 70 acres of its property along and south of 171st Street into a conservation easement with the Minnesota Land Trust. About this time, Cargill proposed to develop an approximately 30,000 square foot office building on the north side of 165th Street. Because the zoning ordinance does not allow commercial or industrial development in the urban services area until utilities are available, Cargill was not able to proceed with this building. Finally, Cargill objected to the assessment of a portion of its property as part of the East Highway 10 public 110 improvement project, and filed an appeal of this assessment in Sherburne County District Court. This appeal is still pending. r,.... D. ...,-r AAnn-ry MnnTv R. RFNNFTT P A ATTORNFYS AT LAW �,.• July 10, 2000 connect to water and sewer if they were to be come available after development of the building. 4. The City will consider zoning ordinance amendments to clarify Cargill's zoning status. 5. Cargill will relocate the conservation easement from its existing location toa location agreed to by the Minnesota Land Trust and the City. V/' 6. Cargill will give the City 60 net acres (up to a total of 80 gross acres) along and south of 171St Street for a future Business Park. The City will have the right to develop 25 acres along 171st Street immediately; the balance of the Business Park could not be developed for 5 years. 7. Cargill will give the City the necessary right-of-way for a road corridor connecting 171St Street and 165th Street between Highway 10 and the Burlington Northern tracks. Cargill will also give the City a 50 foot right of way for utilities through • Cargill's property south of 165th Street. 8. Cargill will give the City the necessary right-of-way for the proposed 175th Street improvements, and the City will not assess Cargill for such improvements. 9. Cargill will acknowledge the potential for future improvements to 165`h Street and a future road connection between 165th Street North to the Fillmore Street area. The intent of this agreement is to preserve the City's ability to provide for appropriate development in the Highway 10 corridor,to protect Cargill from encroaching urban development with respect to the remainder of its property, to provide Cargill with the opportunity to develop its property if it desires to, and to address as many issues that might arise in the future as we can foresee. I encourage the City Council to review this document very carefully and ask as many questions as needed to be sure everyone understands it. SIGNIFICANT ISSUES The following are my list of the most significant issues for the City Council to consider as they decide whether to approve this agreement: 1. Section VI.A sets forth five things which the City intends not to do to • Cargill. Please review this section very carefully, to ensure that you are comfortable expressing these items as the City's intent. _ , \ \ / 173RD \ \ I AVENUE---1--:,./..,e,.._ 2 11 12 2 - il .3, 1 61, 4,i1 libit\ 1- p . 4 11 It 3 4 ,,, 1 ii.c 44 1" ()Tral B OuTLOT 17 ._,1 .,AV NU ! \ 11 1 11 I , .:nIm.oilmg. izrmae.,iti it 170TH AVE. Mid 1._gti1-5At1,.k1.,t5}v•Aa.1,''1:'•,:-i:i414 •1::,1,i:.--,I121 ''D°,D4sIo_T'cii.N 11 P i1 II • II rigillto ''' - ','-' :,=,._,,,?L, .::,..,-,-;,•:,JA:5m7....4,,,..11 11111111lb likbp,!,,,i6a,,, ...:::45,,mxtigto ,:s. ,',.:.A. ,,:,,,,,•:;:':] :!',iitfi-lf:: _ Iff.IIIIIN$ 11177'41, Di VA ,-...41t,kkitai:'..1•::'-'4.,asi,'''','•-- ---- ""‘,-4',-(-,r.;,.,-...:114,1,-6,.-.,,A4- -Fe:-; w 116911.mmIll --::'-'.1.;-4-,.arlii ariP-kii:t9T.ttR,IRI-1;',7g2-ii;l; ----:-.7:--;:•,. 1 ---' 1 F-'z-ff .,-;2$ iT,N,.. qt Ms :45mile 60.0 NET ACRES ., . •s\ • lkii$0,Vi..4.N.WAtIT:f.,,ki:r*,-- ,,,:-.111-...,•!,,We.i,-,11,,,,,''.,.-4,-71,-,,t1 5 15 MmuUMm I 'I' . . 40, :I: , : . 600' ..: . IF , 1 GRAPHIC SCALE AVENUE 1 1‘ < 165TH 1 - 1.325 ENERGY PARR ORM CITY OF ELK RIVER . •,.1 0 B USINESS PARK PROPERTY _ ; •rE BY RD,SION DESCRIPTION (6,2)644-4199 4.ENC4NEIR UNDER 1NE LAWS OF THE likee Howard R.Green Company CONSULTINGENGINEERS -..... ... ,... 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