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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 PUwEBEU AY 6, V5AWR 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 N: \Departments \Community Development \Planning \Case Files \ZC \ZC 17 -03 Truck Shop - Beaudry\4 - Planning Commission \ZC 17 -03 sr PC 3- 28-17.docx r �r 4 �* � o 7504 -0{s9�G�` �•' . �, ra ,f . �... _ - • Y rte. x ki 75°�iJ3 -04��� or 1 tlf 75:403-0050 iaTH S T Ntiti7 ON cur i if Case : P 17-03 Z 1- CU 17-08 i. T-1 S ' Elk" Riv 'r t S S i5 7�- 7W3•U0�i0 � 75-41 4-7-35W. I d .. iaTH S T Ntiti7 ON cur i if Case : P 17-03 Z 1- CU 17-08 i. T-1 S ' Elk" Riv 'r 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.