EDSR MEMORANDUM 01-06-1997 ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
•
MEMORANDUM
TO: Economic Development Authority
Paul T. Steinman, Director of Economic
Development
DATE: December 31, 1996
SUBJECT: Strategic Planning
I. PURPOSE OF MEMO
The purpose of this memo is to describe the process and activities
which will be undertaken at the EDA meeting on January 6th
regarding the industrial base action plan for strategic planning.
• II. OVERVIEW
The Strategic Planning Task Force, at its last meeting, attempted to
undertake the process of action planning on the first of four prioritized
strategic issues - Industrial Base. After some discussion by the Task
Force, it was determined that it would be appropriate for the EDA to
step into the strategic planning process and complete an action plan
for the industrial base issue. Such action plan, as directed by the Task
Force, is to include the following key component:
• expand the number of acres of land zoned I1/l2 or Business
Park to approximately 300.
It may be necessary for the EDA to hold one more meeting in January
in order to complete its action planning tasks. The HRA will be
undertaking the process of action planning on the Downtown
Redevelopment strategic,issue at its meeting on January 27th. The
Task Force will then be meeting on February 5th to pull the final pieces
of the strategic plan together.
Staff will have available at this meeting the estimates for construction
of improvements in the western business park area. It is not
•
P.O. Box 490 • 13065 Orono Parkway • Elk River, MN 55330-1743 • (612) 441-7420 • Fax: (612) 441-7425
Equal Opportunity Housing and Equal Opportunity Employment
Strategic Plan Memo
December 31, 1996
Page 2
ioanticipated however, that a great deal of discussion will occur
regarding the cost implications of the potential purchase of business
park properties. As staff has indicated, the purpose of this meeting is
to map out specific areas where industrial opportunities can occur, and
proceed with action planning which will likely include rezoning and
other processes in order to accommodate industrial development in
these areas. Other implementation steps will include negotiation of
joint development and marketing agreements,and a financial analysis
of business park property including cost to purchase, improve, etc.
This information will then be brought back before the EDA and City
Council to be used to address the question of whether to pursue the
purchase of property in the business park area.
III. PRIMARY ISSUES TO CONSIDER
The.EDA has the following primary issues to consider for discussion at
this time:
• What are the criteria to be used to identify appropriate
industrial sites?
The criteria which staff has used to identify options for
industrial sites include the following:
- utility availability - present (0-1 year) and future (1-5
years)
- 'current zoning/land use
-, surrounding land uses
- market potential
transportation/access
- topography
- soil conditions (i.e. wetlands)
For the purposes of this exercise, ownership of these possible
industrial sites was not considered to be an appropriate
criteria.
• What are the industrial sites which staff has
identified?
Staff has included in your packet a zoning map with the
identified Urban Service Boundary (USB) and proposed
transportation corridor connecting County Road 13, 12, and
Highway 10. (If not attached to this memo, copies will be
Strategic Plan Memo
December 31, 1996
Page 3
410 made available for viewing at the meeting.) This map also
identifies eight specific areas within the USB which may be
zoned appropriately to allow industrial development. These
areas are identified in orange on the enclosed zoning map.
The proposed transportation corridor connecting County
Roads 13, 12, and Highway 10, is integral to creating
industrial opportunities in areas 3, 5, 6, and 7.
In total, the eight areas identified as potential industrial
opportunities equal approximately 440 acres. Obviously, all
these areas are not immediately available for development.
However, areas 1, 2, and 4 could be made available as soon as
rezoning would occur. Those areas which are dependent upon
the transportation corridor being constructed may not be
available with utilities until the next one to five years. Two
major factors affecting construction of the transportation
corridor include the timing of the housing development on the
Waddy Schultz property, and also the commercial
development of the Earl Hohlen property. If these two
projects were to begin within the next year, it is feasible the
• transportation corridor could be constructed up to
approximately 1/2 mile south of County Road 12, allowing
areas 5 and 6 to be available for development.
• What is the recommended phasing approach?
Planning and Economic Development staff have discussed a
phasing concept which includes the following:
- Phase I (0-5 years) - current west business park
property including Areas 1, 2, & 4 and industrially
zoned areas outside the USB at intersection of
Highway 10 and Edison Street
- Phase II (3-7 years) - Areas 3, 5, & 6
— Phase III (7-10 years) - Areas 7 & 8
- Phase IV (15-25 years) - industrially zoned gravel
mining area
Strategic Plan Memo
December 31, 1996
Page 4
• • What is a breakdown of the 11/12 and BP zoned
properties?
Current:
Zoning Inside USB Outside USB
I1_ 698 acres 150 acres
I2 132 acres 484 acres
BP 23 acre 0 acres
Total 1,064 acres 634 acres
Of that which is currently zoned I1 and lies within the USB
approximately 250 acres is owned by Cargill.
Future (possible) within the USB, as indicated on the
attached zoning map:
Area 1 65 acres
Area 2 16 acres
Area 3 33 acres
Area 4 8 acres
• Area 5 25 acres
Area 6 18 acres
Area 7 85 acres
Area 8 190_a
Total 440 acres
Excluding the mining excavation areas on north 169, the
following I1/12, or BP zoned properties are currently vacant or
in transition and available for industrial development with
some qualifications:
• 2 acres Elk River Industrial Park immediately
available
• 100 acres Business Park west immediately available
or within a reasonable time period for a large
industrial user
• 15 acres Industrial Hardfacing Area - no services
available
• 20 acres Rail 10 Industrial Park - no services
available
• 50 acres Business Park - east - no services available
Strategic Plan Memo
December 31, 1996
Page 5
• 130 acres Southeast Highway 10 (Edison
Street/Highway 10) - no services planned
Of the approximately 317 total vacant/transitional acres, only
about 100 are available immediately or at least improvements
have been physically planned and are capable of serving the
area (Business Park - west) within a reasonable time period.
IV. CONCLUSION
In conclusion, it is important to note that the attached zoning map
which identifies possible industrial opportunities is for discussion only
at this time. Recommendations from the EDA will go to the Strategic
Planning Task Force and be included as part of the overall strategic
plan which will, in its final form, be presented to.the City Council.
Upon acceptance by the City Council, implementation will begin which
will, in this case, likely involve a number of zoning changes to
accommodate the industrial opportunities as discussed. If
Councilmembers on the EDA are not in favor of supporting certain
zoning changes as initiated by the EDA and Task Force, then those
issues should be brought out at this time for further discussion.
• V. ATTACHMENTS
• Zoning map indicating options for industrial property and urban
service boundary
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