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Steering Committee 07-14-1994 0/o / I • ,0 kk MEETING OF THE ELK RIVER STEERING COMMITTEE HELD AT ELK RIVER CITY HALL THURSDAY, JULY 14, 1994 Members Present: Chairman Minton, Committee Members: Hank Duitsman, Pat Dwyer, Dick Hinkle, Merry Sipe, Marly Glines, Mary Eberley, Mary McDevitt, Lloyd Barthel, Arnie Engstrom, Bill Birrenkott, and Keith Holme Members Absent: Committee Members Chris Kreger, Dave Anderson, Mark Lucas Staff Present: Steve Ach, City Planner; Bill Rubin, Economic Development Coordinator 1. Call Meeting To Order Pursuant to due call and notice thereof, the meeting of the Elk River Steering Committee was called to order at 7:02 p.m. by Chairman Minton. 2. Consider Steering Committee Agenda • ARNE ENGSTROM MOVED TO APPROVE THE JULY 14, 1994 STEERING COMMITTEE AGENDA. DICK HINKLE SECONDED THE MOTION. THE MOTION CARRIED 12-0. 3. Consider Steering Committee Minutes PAT DWYER MOVED TO APPROVE THE APRIL 27, 1994, STEERING COMMITTEE MINUTES. MARY EBERLEY SECONDED THE MOTION. THE MOTION CARRIED 12-0. The following corrections to the May 25, 1994 Steering Committee Minutes were noted: 3. Paragraph 4, should read "Chairman Minton emphasized the importance of the industrial sector because it gives us the biggest tax base for the community." 4. Change the word "Conclusion" to "Summary"; and, add the word, "acres" after "25" in the first line after "Summary" MARY EBERLEY MOVED TO APPROVE THE MAY 25, 1994, STEERING COMMITTEE MINUTES AS AMENDED. PAT DWYER SECONDED THE MOTION. THE MOTION CARRIED 12-0. 4. Response to Letter from Tony Emmerich Chairman Minton asked that the letter from Jay Johnson of Tony Emmerich • Homes be entered into the Steering Committee record, along with the staff's response prepared by Steve Ach. Steering Committee Minutes Page 2 July 14, 1994 • IPPipien) 5. Introduction of Commercial Development 5.1. General Information on Commercial Retail Sales, Construction, and Tax Impacts 5.2 Evaluation of Existing Commercial Districts Steve Ach reviewed the following exhibits: Exhibit A - Retail Sales and Effective Buying Income for Sherburne County (1988-1992) Medium household income, retail sales and buying power has increased over the years. Exhibit B - Elk River Retailers 1992 Retail Sales Gross retail sales broken down by Standard Industrial Classification (S.I.C.) codes Exhibit C - 1988-1992 Retail Sales in Sherburne County/Elk River/Percent of County Sales Discrepancies can occur due to reporting factors (i.e., mailing address/business address). Exhibit D - 1992 Retail Sales Estimate Summary memo of Exhibits A, B, and C, prepared by Bill Rubin • Exhibit E- Residential/Commercial/Industrial Construction Value 1988-1993 1994 expected to increase significantly, due to Elk Park Center, Hillside Crossings, and surrounding commercial activity. Exhibit F- Commercial and Industrial Contribution to City's Tax Capacity Commercial and Industrial contribute $3.85 million in taxes, representing 44.5% of tax capacity. Importance of both industrial and commercial for a community should not be under estimated. Exhibit G-Taken from Growth Management Study for City of Lakeville This study illustrates how industrial and commercial property positively benefit a community's tax base. Net result would be similar in Elk River. Industrial and commercial generate a majority of revenue for cities and school districts. Single family development demands more services (expenditures) and contributes less tax revenue. Chairman Minton noted that the net impact of commercial in the Lakeville study was nearly twice as much as industrial, indicating commercial was more important. Gary Santwire stated that he felt that it would be true in considering tax dollars only, but if you are considering places for people to work who live here, that would a different category. Dick Hinkle stated that this information does not mention the value of industrial in creating new jobs. • Steering Committee Minutes 8 r-.e 3 July 14, 1994 a fCJ i .j • 5.3 Inventory of Commercial Property- Exhibit H Steve Ach explained the following breakdown of commercial property in Elk River: Total acres zoned Commercial: 873 acres C 1/Central Commercial - 55 acres C2/Office District- 56 acres C3/Highway Commercial - 662 acres Planned Unit Development 140 acres Total Acres Developed 469 acres Total Acres Vacant 404 acres - Restrictive Areas -27 acres TOTAL NET ACRES AVAILABLE FOR DEVELOPMENT- 377 ACRES Cecilia Scheel questioned what "restrictive areas of development" meant. Steve Ach explained that these areas were wetlands, floodplain areas, or properties that would not meet minimum setback requirements and could not be developed. Gary Santwire asked how many restricted and developed acres were in each of the four commercial areas. Steve Ach stated that those numbers have been calculated but he did not have them available, but indicated most of the available commercial area is C-3/Highway Commercial. He explained that the C-1/Central Commercial area is located in the . downtown and is fairly limited. C-2 is in the corridor on Main Street between Highways 10 and 169, and north along Jackson. C-3 is located along east Highway 10 and up Highway 169. Steve explained that using a high absorption rate of 14 acres per year, the City would have approximately 27 years worth of commercial property. Using a low rate of 2 acres per year, there would be approximately 188 years worth of commercial property. He noted that these numbers could change dramatically when big projects such as Elk Park Center are developed. Pat Dwyer indicated that a large portion of undeveloped commercial land located along the Highway 10 east corridor would be used if sewer and water were available. He stated that if a large user wanted to locate there, they would be unable to because of the lack of utilities. Gary Santwire questioned whether or not Elk Park Center is considered developed. Steve Ach stated that the majority is considered developed with the exception of the free-standing lots between Freeport Avenue and Highway 169 and the 3 lots at the north end of the development. Steve Ach explained the graph attachment to Exhibit H, which shows the new commercial development from 1988 to 1993. He estimated there will be approximately 75 to 100 acres of new commercial development in 1994. • 6. Overview of Commercial Districts Steering Committee Minutes Page 4 July 14, 1994 PRAYED 6 Steve Ach reviewed the four commercial zoning designations in effect as follows: 6.1. Central Commercial Cl district, basically the downtown area, approximately 55 acres of property 6.2. Office District C2 district, primarily the East Main Street corridor, some along the west side of Jackson extending north from the downtown area, also the courthouse property, all totaling approximately 56 acres. 6.3. Highway Commercial C3 district, the most intensive commercial district, has a broader category of permitted and conditional uses, 622 acres. 6.4. Planned Unit Development PUD district, primarily consisting of Elk Park Center, Hillside Crossing, Barrington, and Elk River Mall. Chairman Minton questioned whether the PUD at Highway 10 and Waco was industrial or commercial. Steve Ach stated that the land use plan map suggests approximately 2 acres are Highway Business while the balance is Light Industrial. Mike Boelter asked what is the current zoning of Custom Motors and Wapiti Park. Steve explained that Custom Motors property is zoned I-1, Light Industrial, and Wapiti Park is currently zoned residential. Chairman • Minton noted that Wapiti was grandfathered into the current zoning. 7. Downtown Commercial Area 7.1. Inventory of Existing Land Use Bill Rubin provided a map (see exhibit J) and explained uses currently operating in the downtown area. 7.2. Challenges and Opportunities in the Central Business District Bill Rubin explained information in Exhibit J and K, emphasizing the value of a vibrant Central Business District (CBD) and the importance of reinvesting in the CBD. He discussed some of the challenges and obstacles encountered in redevelopment, and the City's/HRA's/EDA's role. He stated that revenue sources must be identified to provide assistance and/or incentives in order for redevelopment to occur. 8. Discussion of Goals and Policies for Commercial Development Steve Ach reviewed the current Growth Management Plans goals and policies, as outlined in his memo to the Steering Committee dated July 14, 1994. He stated the Steering Committee needs to determine if these goals and policies are still valid, and to make the necessary deletions or additions, based on the group's findings. In conclusion, Steve indicated he feels the City of Elk River is in a good position to II attract quality development. As Elk River's residential base continues to expand commercial development will naturally follow. The City's challenge will be to manage this commercial growth. Steering Committee Minutes Page 5 July 14, 1994 • aFPI() FEL) Steve Ach suggested that the Steering Committee may wish to consider the following issues in evaluating the current goals: • Establish a neighborhood commercial zoning district • Establish an intermediate type commercial district somewhere between the office district and highway commercial • Planning and redevelopment efforts for the downtown area Chairman Minton posed the following questions for Steering Committee: • Is there enough commercial property in the City? • What characteristics should it have? • Are the current commercially zoned areas in the right place? • If not, where should they be? Jim Mulroy, representative of the Downtown Development Corporation, stated that if the people in the position to do something about the downtown are interested, something could be accomplished. Bill Rubin noted some of the challenges to the downtown area are the highway, the river, limited access to the river, and the railroad tracks. Arne Engstrom commented on the restrictions in redevelopment, including costs, • working with old buildings and limited parking. Bud Houlton commented that Kraus-Anderson previously presented some very interesting plans for the downtown area, but they were found to be cost prohibitive. Further, he felt the plans for the "hole in the ground" will be helpful. Gary Santwire stated that a redevelopment proposal for the vacant site downtown was denied by the Council. Pat Dwyer explained that was partially due to changes in the T.I.F. laws. Mary Eberley questioned the availability of funds for historical redevelopment. Pat Dwyer replied there is a very high demand and very little money available. Chairman Minton said that a historic theme has been suggested for the downtown, using the river and older buildings. Discussion followed regarding this concept. Opinions varied as to historic value of existing buildings. Jim Mulroy informed the Committee that he has received many positive comments on the downtown from customers since the street lights and sidewalks were added. Denny Gorman, resident, remarked that he was strongly in favor of using the semi- rural flavor idea in the downtown area. This idea has been successful in communities with a natural resource such as a river or lake, and Elk River has that. • Stan Chase, business owner, commented that the railroad tracks were definitely a barrier in developing the downtown. He suggested building a tunnel for the Steering Committee Minutes apoalitwa July 14, 1994 • railroad, or walls with walking bridges over the tracks. Robert Dare, business owner, felt the railroad may be an asset in the future for providing mass transit opportunities to Minneapolis and St. Paul. Pat Dwyer noted the downtown area has been studied over and over, but the same problems remain, such as cost of redevelopment and parking. Service- oriented businesses will likely locate in downtown, but some type of redevelopment project will be required. Steve Johnson, business owner, commented that it has been past practice to reinvest commercial tax dollars in residential projects. He suggested that a portion of the City's taxes be set aside to reinvest in its downtown. Discussion followed regarding the T.I.F. program. Bill Rubin informed the Committee that there are many positive attributes in the downtown area. There are no boarded up buildings downtown, it is clean, and the recent landscaping and expansion projects in the downtown are attracting attention. Also, Elk River is unique in that it has an actual "Main Street" . Discussion followed regarding boundaries of the downtown. Don Heinzman explained that business owners north of the railroad tracks do not seem to feel they are a part of the downtown and questioned the definition of "downtown". • Bill Rubin referred to the map outlining the central business district, including the C-1, Central Business District, the core downtown area, and areas complimenting the downtown such as the East Main Street corridor. Bill stated that the defining the downtown would likely be an internal issue. Hank Duitsman stated that some commercial tax dollars do go back into the downtown by providing police and fire protection, and other services, indicating that he hopes a plan for the downtown can be agreed upon so that some type of funding can be provided in the future. Arne Engstrom emphasized if money is not available to invest now, the City can create a theme by using the mechanics of the ordinance to regulate construction and remodeling in the downtown area. Margo Foster expressed her concern that retail in the downtown area not be limited to a service district that would coexist with retail. Pat Dwyer agreed there are retail uses that would be compatible. The concept of entrances to the downtown businesses and shops facing the river was discussed. Mr. Dare expressed his concern for the deteriorating riverbank, noting that 12 to 15 feet have eroded away since his business located there. Marlon Glines indicated he did not feel either of his businesses were part of the downtown, one being north of the railroad tracks and the other on East Main Street. He agreed that the downtown area is appropriate for service-oriented businesses and specialty retail, and that people would be more likely to spend time walking around in the downtown area. • Steering Committee Minutes Pe 7 July 14, 1994 AP • WEB Chairman Minton asked for a consensus of the Steering Committee to continue this discussion at a meeting with the downtown group. Chairman Minton feels that people move to the Elk River area because of the semi-rural atmosphere, "where city and country flow together". He also discussed negative comments from local residents made at Planning Commission meetings regarding the large scale development that is occurring in Elk River. Gary Santwire asked whether or not it would be in the best interest of the City to force existing commercial areas to be absorbed, rather than create another spot of commercial north on Highway 169. Mr. Santwire suggested the Committee consider deleting some of the commercial zoning in the Comprehensive Plan and adjust/fine tune what we have. Hank Duitsman stated that it is the intention of the Committee to first inventory the land uses and then identify areas where zoning may be inappropriate and to adjust it accordingly. Another area of concern is to identify arterial roads, and where they should be since there is a close relationship between transportation and land use decisions. Chairman Minton noted that design standards in commercial areas can be used to keep the semi-rural atmosphere. The PUD (Planned Unit Development) concept was discussed. Steve Ach 4111 explained that a similar result can be accomplished by setting a high level of development standards in the City's existing zoning ordinance. Steve Ach and Bill Rubin agreed that PUD's can become administratively cumbersome, citing the Elk River Mall as an example. Marlon Glines stated that PUD's can offer special amenities that make it unique when use correctly. The neighborhood commercial zoning district concept was discussed. A resident expressed his opinion that the City should use extreme caution in proposing such a district; there are areas where it would be strongly opposed. Steve Ach explained the value of small convenience center in a residential district, providing such services as gas and groceries, dry-cleaning, hair styling, etc. Marlon Glines suggested the Committee provide more categories limiting the types of uses within a specific commercial zoning district. Chairman Minton reported that Don Strei had contacted him regarding the idea of a business/office district near the Courthouse. Steve Ach replied the proposed business park zoning would provide opportunities around the Courthouse for clean industrial, office and limited retail; all of which comprise the business/office district. Chairman Minton stated that a letter was received from Franklin Outdoor Advertising which offered ideas for a uniform sign ordinance for commercial and industrial zones. He also noted that each member of the Committee has been given a copy of the Surface Water Management Plan and Comprehensive • Transportation Plan. Steering Committee Minutes Page 8 July 14, 1994 APPROWB • A consensus was reached to table the Commercial Development Discussion to a later date. Don Heinzman announced that the Promotion Committee of the Downtown Development Corporation will be launching a focus group study for making the downtown more attractive. The following upcoming meeting dates were noted: July 28, 1994, 4:45 p.m., Community Room at the First National Bank - Next meeting of the Downtown Development Corporation. August 8, 1994, after the regularly scheduled EDA meeting (approx. 8 p.m.) will be a workshop session for the EDA, City staff, and the Utilities Commission, to discuss business park issues. A second workshop will be used to discuss downtown redevelopment issues. Downtown Development Corporation and Promotion Committee representatives are invited to participate. August 25, 1994, 7:00 p.m., Steering Committee Meeting Next Topic of Discussion: Northern Residential/ Agricultural Area of the City The meeting adjourned at approximately 9:40 p.m. 411 Respectfully submitted, /` Debbie Kleckner Recording Secretary •