6.5a PCSR 03-28-2017E lls
River
Request for Action
To
Item Number
Planning Commission
6.5a
Agenda Section
Meeting Date
Prepared by
Public Hearing
March 28, 2017
Chris Leeseberg, Senior Planner
Item Description
Reviewed by
Beaudry Oil /Truck Shop — 620, 634 Quinn Ave. &
Zack Carlton, Planning Manager
623 & 633 Proctor Ave.
Reviewed by
■ Zone Change from C4 Community Commercial
to I2 Medium Industrial, Case No. ZC 17 -03
Action Requested
Recommend, by motion, an ordinance to rezone certain property from C4 (Community Commercial) to
I2 (Medium Industrial).
Background /Discussion
Case No. ZC 17 -03
The property is zoned I2 (Medium Industrial) and C4 (Community Commercial) and the applicant is
seeking preliminary plat approval (P 17 -03) and a Conditional use Permit (CUP) to operate a bus, truck
and implement storage, maintenance and repair facility (CU 17 -08). The proposed project is comprised
of four parcels. The northern two parcels are currently zoned I2 (proper zoning for the proposed
project) and the southern two parcels are zoned C4 (improper zoning for the proposed project).
The applicant is requesting the two C4 zoned parcels be changed to an I2 zoning.
Applicable Regulation
In revieaving a proposed amendment, consideration
shall be given to existing conditions within the area
directly and indirectly affected by the proposal, the
conservation of property values, the use to which the
property affected is being devoted at the time, and
relevant provisions, if any, in the land use plan.
The property is surrounded by Industrial
and Commercial zoned properties, the same
as the subject property, with many of them
containing legal non - conforming residential
structures. The proposed Zone Change is
consistent with the above standards for
approval.
Existing Proposed
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Analysis
Comprehensive Plan
The property has a land use designation of Mississippi Connections (Plan). The Plan states: Proctor and
,Quinn Avenue area is a relatively small area with a variety of incompatible land uses including both residential and heavy
industrial. Highavay 10 improvements will include Proctor Drive intersecting with Higbway 10 via an overpass. This
overpass will extend to the north, over the railroad tracks. This long elevated road will create a unique opportunity for the
property in the area, altering visibility and access. Due to the area' proximity to the train tracks and Highway 10 traffic,
the Plan suggests business park uses and employment centers.
Strategies of the Plan are:
1. i�ork with the development community to idenfift and explore market opportunities and the feasibility of
redeveloping the area as a whole.
2. ilork with interested property owners in the development of a master-Plan prior to rezoning the parcels.
3. Establish opportunities to construct community directional signage andgatervay signage along Proctor Avenue.
Staff has been, and continues to, work with the applicant on draft master plans for the block, but no
agreement has been reached. The southernmost five parcels eventually lose direct access to Proctor
Avenue and will only be accessible from the west via a cul -de -sac.
Financial Impact
None
Statutory Review Period
Per State Statute 15.99 the required 120 -day review period ends on June 27, 2017.
Attachments
• Location Map
• Applicants Narrative
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Project Narrative- Rezoning — Truck Shop
Detailed description /scope of project. What is being proposed?
BACKGROUND OF COMPANY
Beaudry Oil & Propane is a local, family owned business that has been in the petroleum business since
1981. Founded by Ken and Carrie Beaudry, it began with one truck and one employee; today Beaudry
Oil employs over 50 full time employees. In 1987, the company started delivering propane, and over the
years, has added lubricant products, their own brand of diesel and oil, and propane cylinder exchange.
Today, Beaudry Oil is a leading fuel company that delivers millions of gallons of petroleum across the
state of M N.
Truck Shop is a division of Beaudry Oil, and is 100% owned and operated by Ken Beaudry. Established
on February 20, 2017, this business will provide minor repair for Beaudry Oil & Propane fleet (not open
to the public), which includes oil changes, replacing tires, changing brakes, minor service, light
maintenance, cleaning and detailing.
Their new facility is anticipated to generate nearly $11,000 in additional revenue each year upon project
completion.
PROPOSED PROJECT
Mr. Beaudry is proposing a redevelopment project on four sites immediately west of Beaudry Oil on CR
1/ Proctor:
• 634 Quinn (owns)
• 620 Quinn
* 633 Proctor
• 623 Proctor (owns)
Pending approval, Mr. Beaudry intends to acquire the two remaining properties; he has purchase
agreements pending for both properties. He intends to build an approximately 7,216 sf facility to
operate a light maintenance facility for his existing company fleet
The facility will be used for minor repair for Beaudry Oil & Propane fleet (not open to the public), which
includes oil changes, replacing tires, changing brakes, minor service, light maintenance, cleaning and
detailing. There will be no heavy motor overhauls or outside storage. Per the city on 1- 11 -17, this use
falls under "bus, truck and implement storage, maintenance and repair ", which is a conditional use in
the 1 -2 zoning district. The goal is to get vehicles in and out of the facility as quickly as possible.
Approximately 224 sf will be used for office, and there will be approximately 1,600 sf of mezzanine for
storage on the northern quarter of the building. There will be three overhead doors on the west end of
the building, and three on the east. The proposed facility will be a block building, and approximately
20' -22' high. The new facility is anticipated to generate nearly $11,000 in additional revenue each year
upon project completion, in addition to creating five new jobs averaging $23.20/'RECEIVED
FEB 2 7 2017
Truck Shop owner, Mr. Beaudry, and project team, met with City Engineer Justin Femrite, and County
Engineer, Adam Witter, on January 23, 2017 to discuss future road improvements and the proposed
project, Both indicated their support in moving the project forward through the development process
based on preliminary sketches.
What are the reasons /purposes for the proposed Zone Change?
The proposed project is comprised of four parcels; the northern two parcels are currently zoned 1 -2
(conforms to proposed project) and the southern two parcels are zoned C4 (does not conform with
proposed project). All four parcels are guided Mississippi Connections; on 2- 17 -17, staff indicated the
project fit within the guided land use.
What has changed to warrant the Zone Change?
The proposed project only needs a partial rezone to conform to the city ordinance. There has been
numerous discussions regarding the final design of road improvements in the proposed project area
(Quinn, 6 th Street, CR 1 /Proctor). A meeting with both city and county engineers on 1 -23 -17 resulted in
their support for the project to move forward in the development process.
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:
• The project will make Elk Rivera complete place through attracting employment opportunities
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 jabs and encouraging redevelopment. This
project will address all three elements through the redevelopment of four parcels and four
existing, non- conforming residential properties built in the early 1930s.
• The Plan also indicates that property taxes remain the largest source of revenue far the City and
that retaining and attracting livable wage jobs has been an ongoing objective for the city; this
project will generate additional revenue through the tax base more than doubling, and create
five new jobs for the city, averaging more than $23 /hr
• Brings two existing, non - conforming parcels into conformity
• Supports the goal of redevelopment: "the city should explore more aggressively the practice of
redevelopment ... the stated and practiced posture of the community to allow for and promote
the reuse of substandard parcels ... the city should seek to remove obstacles to redevelopment"
• Supports to "foster a pro - business atmosphere That provides incentives and other opportunities
for new and existing business growth" — this project will be utilizing the HRA Rehabilitation
Forgivable loan to offset increased project costs due to demolition of four existing, non-
conforming properties
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."
+ This project supports the following objectives as outlined in the Implementation Section (p. 130)
in the Comprehensive Plan:
o Meets the vision of "to be the light industrial hub for small to medium -size firms in the
NW Metro region"
o Continue to promote and encourage the expansion of jobs and business growth within
the city
How compatible is it with surrounding properties?
The proposed Truck Shop project is compatible to its surrounding properties, and is located:
• Immediately East of Cretex Concrete Products; this parcel is over 65 acres, zoned 1 -2, guided
Industrial
• South of several properties currently zoned I -2, guided Mississippi Connections
What are the benefits to the City?
In addition to the creation of a new business which will support a family owned businesses that has
been in the Elie River community for over 35 years, the city will benefit in the following ways:
• The redevelopment of four, existing non - conforming residential homes; three which are
substandard
• The creation of a minimum of five, full -time permanent jobs for local citizens, with base hourly
wages ranging from $16- $28 /hr.
• New jobs provide higher wage levels to the community & will add value to current workforce
skills
• Average hourly wage (w /o benefits) of $23.20/hr; with benefits is $27.20/hr
• The injection of approximately $1,200,000 in private investment to revitalize a highly visible site
along CR1 in close proximity to US HWY 10
• The tax base will more than double; current taxes on the four parcels = $6,982/yr
• Estimated taxes upon project completion will be $17,500 /yr
Community Involvement
Beaudry Oil, Truck Shop and their employees is a company that believes in using their resources to
support and impact the local community. They participate in local events, sit on a variety of local
committees and boards (i.e.: Elk River Area Chamber of Commerce) and support local organizations such
as Timber Bay, Young Life, Three Rivers Community Foundation, CAER, MN Teen and Adult Challenge,
Fellowship of Christian Athletes and more.