3 PCSR 05-25-1995 -17
ity of
1k River
MEMORANDUM
TO: Steering Committee
FROM: Steven B. Ach, City Planner
DATE: May 25, 1995
SUBJECT: Agenda Items
Review Committee's Decision on Industrial Development
Attached is a map illustrating the Steering Committee's recommendation to
expand the industrial opportunities along the East Highway 10 corridor. If
this map accurately illustrates the Committee's intent for the East Highway
10 corridor, staff asks that this be confirmed at Thursday night's meeting.
Commercial Development
• Included in the Steering Committee's packet is a copy of minutes (Exhibit B)
from the July 14, 1994 Steering Committee meeting where commercial
development was first discussed. In addition, backup information previously
distributed at Steering Committee meetings has been included for discussion
purposes. (Exhibit C)
The following is a brief description of the existing commercial areas and
where they are generally located throughout the community:
• Highway 169 Corridor - The Highway 169 corridor is obviously the most
intense and heavily developed commercial within the City. The primary
zoning found along this corridor is either C-3 (Highway Business) or a
PUD which has been developed with more control, however, maintaining
the characteristics of a highway business development. A couple of issues
that may be discussed in regards to this corridor are: (1) how far north
should commercial extend? (2) are there any particular areas that should
be considered for rezoning to accommodate highway commercial
development?
• West Highway 10 Corridor - Highway 10 as it extends west out of the
• downtown area does not currently have a significant amount of
13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • (612) 441-7420 • Fax: (612) 441-7425
Memo to Steering Committee Page2
May 25, 1995
• commercial development. The current zoning along this corridor indicates
that West Highway 10 will not be developed as a regional type commercial
as Highway 169; rather, the commercial will be more community and
neighborhood-oriented. Examples of this is at the intersection of Highway
10 and Proctor where there is a convenience/gas facility as well as another
at the intersection of Orono Road and Highway 10. As it has been
discussed before, the Business Park allows for commercial development;
however, the purpose of this commercial is to serve the businesses and
residents within that area.
• East Highway 10 Corridor - The East Highway 10 corridor presently does
not have City water and sewer, which may be one reason the development
activity is not as intense as Highway 169. The present zoning of C-3
would allow for similar development activity as Highway 169 once City
water and sewer is extended. One of the issues along this corridor that
has been discussed is the image and appearance of development. With the
proper zoning and development standards, the City will be able to guide
development and maintain an attractive corridor.
• The Downtown - Also attached to the Committee's packet is information
compiled by the Economic Development Coordinator, Bill Rubin,
regarding issues facing the downtown. Much discussion has taken place in
• the past regarding this area of the City and I think we all recognize the
importance of the downtown and the opportunities that it presents for the
City and its residents. A lot of attention has been given to the downtown
recently and with the formulation of various groups to look at various
issues, a new course can be charted for the downtown. The Riverfront
Corridor Committee is one example that is exploring the development of a
riverfront pathway and to begin opening up the downtown to the river.
Projects such as this river pathway serve as springboards to additional
studies and projects to enhance the downtown area.
One issue the Steering Committee may want to make a recommendation on
is identifying the boundaries of the downtown. Attached is a map illustrating
one concept of the boundaries based on various conversations and ideas from
several individuals that may be considered as the limits for the
"core downtown". (Exhibit D) From this core area certain design standards
and common themes can be extended along East Main Street, Jackson Road
and 3rd Street.
Other Issues
• The Committee may wish to identify certain areas that should be
• considered for commercial development.
s:planning:sc:5-25memo
Memo to Steering Committee Page3
May 25, 1995
• • Design standards within commercial areas have been an issue from
previous meatiness that may require additional attention.
• Establishing new commercial zoning districts such as neighborhood or
community commercial. These districts would be located in areas where
regional commercial may not be appropriate.
Schedule of Upcoming Meetings
Attached is a list of issues left to discuss. (Exhibit E) The dates that were
tentatively scheduled are no longer valid; therefore, dates for future meetings
need to be updated. I would ask that the Committee bring their calendars
Thursday night to schedule future meetings.
•
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EXHIBIT B
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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
dPpzispet ..)5. Introduction of Commercial Development
5.1. General Information 0
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 .e 3
July 14, 1994 pp
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
Cl/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
40. 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
Jule 14, 1994
Appooriii
• 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
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
FAN WEI
• 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 Pa e 6
July 14, 1994 O T1
U vt
• railroad, or walls with walking bridges over the tracks. Robert Dare, business U
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 l, 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 Pai92 7
July 14, 1994 1011.1.7i7EFT
• 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
Ana 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
111
Transportation Plan.
Steering Committee Minutes Page 8
July 14, 1994
1713 rL1 PIFi
t)IU
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.
Resp ctfully submitted,
Z
y/"-"(„c (�j� -cam
Debbie Kleckner
Recording Secretary
•
EXHIBIT C
ELK RIVER CENTRAL BUSINESS DISTRICT (CBD)
, �
REVIEW/DEFINE CBD BOUNDARIES
Elk River's CBD is perhaps best defined as a core area at, say, Main
Street and Jackson Avenue. The core area has multiple extensions
from it. These extensions include:
• The East Main Street office corridor which connects the CBD
with the highway commercial uses at U.S. Highway 169;
• The Railroad Drive/3rd Street NW area; and,
• The Jackson Avenue corridor - which runs north/south from
U.S. Highway 10 to School Street.
Each corridor has its own unique characteristics. For example, the
East Main corridor is primarily single family residential that is
currently undergoing a transformation into office uses. This has
required the displacement or demolition of the single family uses prior
to the construction of the offices. The city/HRA has played an active
role by way or redevelopment grants to ensure that this corridor
emerges as planned. The Railroad Drive/3rd Street area is
characterized by existing commercial/governmental/medical uses.
Redevelopment opportunities exist in this area to connect it with Gates
Avenue. The Jackson Avenue corridor perhaps represents an emerging
zone which may connect the CBD to the Elk Park Value Center and
other Highway 169 users. The east side of Jackson is a mix of
commercial and residential uses. The west side has some vacant
commercial sites as well as a potential redevelopment site where
Morrell Transfer exists.
Barriers or constraints to development in the Elk River CBD include:
• The Mississippi River;
• A river crossing (Otsego bridge);
• U.S. Highway 10; and,
• The railroad tracks.
While these features present challenges to the CBD, Elk River is in an
enviable position when compared to other "suburban" communities
that are currently exploring initiatives to establish a central focus or
an identity. Capitalizing on the CBD's strengths will be a key to
• ensure the long-term success of this critical area.
II. EXISTING USES IN THE CBD
Existing uses were identified at a previous Steering Committee
meeting. Please refer to a handout on this topic in the agenda packet.
In addition, a color coded map identifying the various uses in the CBD
will be available at Thursday's Steering Committee meeting.
The Elk River CBD is anchored by financial institutions, drug stores,
automotive, professional, hospitality, medical providers, and a wide
array of service providers. While the retail base of the community has
clearly shifted toward Highway 169, the CBD remains an excellent
area for the previously-identified uses. Preserving the CBD's existing
base and expanding on it represent both challenges and opportunities
in Elk River.
III. PRESERVATION OF CBD'S CHARACTER
111 A fundamental role of a city is to preserve its character - be it
historical, cultural, recreational, etc. Elk River's CBD stands in
contrast with other CBD's relative to its historical perspectives. Given
the lack of true historical buildings in the CBD, the city and the
respective property owners should not overlook the other
characteristics which help create a sense of place in the CBD. These
characteristics include signage, lighting, sidewalks, streetscapes,
landscaping, etc.
IV. PARKING ISSUES
Municipal lots are maintained in Jackson Square, the former railroad
property running parallel with U.S. Highway 10, the lot behind
Kemper Drug and Champion Auto, and the lot along Railroad Drive.
Two of these lots were improved in recent years by the HRA. The lot
behind Kemper Drug is scheduled for improvements this year. It is
likely that the Railroad Drive lot will be improved in 1996.
It is not practical to expect existing businesses at the CBD core (Main
and Jackson) to provide off-street parking. However, as one moves out
from the core, some minimal parking standards should be required for
each use. Moving out even further, perhaps commercial users are
• required to meet or exceed the city's off-street parking standards.
As future opportunities are presented, the city/HRA should consider
adding to its inventory of off-street parking lots in the CBD.
V. RIVERFRONT INITIATIVES
The Mississippi River in Elk River's CBD is an overlooked asset. Work
is currently underway to explore and plan for the construction of a
pathway along the river in the downtown area. If successful, this
pathway may serve many purposes, including:
• Adding to the CBD's character;
• Reinforcing the community's sense of place;
• Creating a place for activity in the CBD; and,
• Establishing the basis for a showpiece in the city's multi-use
trail system.
Issues such as design, cost, phasing, and sources of funding are
unresolved with this proposed riverfront trail. However, in order to
reinforce the CBD's sense of place for the community and its residents,
a high priority should be placed on this project.
VI. REDEVELOPMENT OPPORTUNITIES
Numerous sites in the CBD and the surrounding area present
themselves as redevelopment opportunities. These sites include:
• Northwest corner of King and Main;
• Southeast corner of Lowell and Main;
• Highway 10 corridor from the Main Street/10 intersection to
the Proctor Avenue and 10 intersection;
• Jackson Avenue - Railroad Drive - 4th Street triangle;
• Southwest corner of Jackson Avenue and School Street;
• Railroad Drive/3rd Street towards Gates Avenue; and,
• East Main Street.
•
c �
Oiry of
L' ik
Rive' MEMORANDUM
TO: STEERING COMMITTEE
FROM: STEVEN B. ACH, CITY PLANNER,,e61.—
DATE: JULY 14, 1994
This next meeting will focus on commercial development in Elk River. Over
the past few years commercial activity has been brisk. With the addition of
road improvements to Highway 10 and Highway 101/169, Elk River has
become more accessible and attractive to prospective home builders and
future residents which in turn fuels the commercial growth. Unlike
industrial development, commercial activity follows growing markets that
occur along with residential growth. Elk River is in a fortunate position to
have the opportunity to take advantage of the strong commercial interest in
this area. The challenge will be to manage this activity and maintain a high
level of quality, project a positive image of the City, and enhance the City's
tax base.
The following is a brief description of agenda topics for the scheduled
meeting:
ITEM 5: RETAIL SALES ACTIVITY
Exhibits A through Exhibit G illustrate general information regarding
commercial activity. Exhibit A should not be a surprise because of the
growth in Sherburne County. Basically, since the median household income
has increased over the years, total retail sales and effective buying income
has followed a similar curve.
Exhibit B provides a breakdown of retailers within Elk River according to
their standard industrial classification (S.I.C.) code and associated gross
sales for 1992. Food stores ($ 35,890,525) followed by auto dealers/service
stations ($ 27,870,304) and general merchandising ($ 12,420,013) lead the
list according to gross sales. With the development of Elk Park Center and
other proposed general merchandising stores, this category should experience
and increase in upcoming years.
• Exhibit C gives a comparison of retail sales within Sherburne County as well
as Elk River's share of the County activity. The City's percentage of sales
P.O. Box 490 • 13065 Orono Parkway • Elk River, MN 55330 • (612) 441-7420 • Fax: (612) 441-742
Agenda Review Memo Page 2
Steering Committee Meeting
July 14, 1994
1110:
has decreased over the past five (5) years, however, with the development of
Elk Park Center, Hillside Crossing Commercial, and possibly the property at
Highway 169 and Main Street, Elk River's share is likely to increase in the
future years.
Exhibit D is a memo from Bill Rubin to the Economic Development Authority
explaining in more detail the preceding two exhibits and the overall retail
sales activity from 1992.
CONSTRUCTION ACTIVITY
Exhibit E illustrates commercial/industrial construction valuations since
1988. Last year, 9.5 million dollars worth of commercial/industrial
construction occurred in the community. 1994 is expected to be another
banner year for commercial construction. Elk Park Center, Hillside
Crossings, and surrounding commercial activity should certainly surpass last
year's numbers.
FISCAL IMPACT
• Exhibit F gives a perspective of commercial and industrial contribution to the
City's tax capacity. In total, $3.85 million in taxes representing 44.5% of the
City's tax capacity is generated by commercial and industrial development.
As discussed at the last Steering Committee meeting, both industrial and
commercial development provide a majority of taxes and job opportunities for
a community. The importance of these two land uses for a community should
not be under estimated.
The next exhibit was taken from a Growth Management study for the City of
Lakeville. The analysis illustrates how industrial and commercial positively
benefited a community's tax base. Even though these numbers reflect
Lakeville's situation, the net result would be similar in Elk River. Generally
speaking, commercial and industrial development are "gainers" for cities and
school districts. These two land uses generate a majority of revenue for the
cities and school districts. On the other hand, single family development
demands a considerable amount of services (expenditures) and contributes
less tax revenues.
INVENTORY OF COMMERCIAL PROPERTY
• Exhibit H gives a breakdown of commercial property within the City.
Acreage for each zoning district has been calculated along with a calculation
memo.steering
Agenda Review Memo Page 3
Steering Committee Meeting
July 14, 1994
•
of total developed and vacant property. The last chart highlights commercial
activity over the past five (5) years whereby an absorption rate can be
calculated and projections for future commercial development needs can be
made.
ITEM 6: OVERVIEW OF COMMERCIAL DISTRICTS
The City has four (4) commercial zoning designations in affect. The
designations are as follows:
A. Central Commercial (C1)
B. Office District (C2)
C. Highway Commercial (C3)
D. Planned Unit Development (PUD)
CENTRAL COMMERCIAL DISTRICT
The downtown commercial area is a very important and vital part of the
community. Because of the issues associated with the downtown, this area
•{ will be discussed separately under Agenda Item 7.
OFFICE DISTRICT
The Office District is basically set up to accommodate governmental, business
and professional offices, and other financial related businesses. The two
identifiable office corridors extend east and north out of the downtown area.
The first is along Main Street between Highway 10 and Highway 169.
Recently, development activity has included removing single family homes
and constructing new low profile office space along the Main Street corridor.
This corridor has a considerable amount of potential to become a high quality
corridor, both visually and in terms of its location. East Main Street also
provides the link between downtown and the Highway 169 commercial
corridor.
The second office corridor is along the west side of Jackson extending north
from the downtown area. This area has a few office buildings on the south
end, however, is primarily undeveloped at this time.
Some issues that may be associated with both of these identified office
corridors include:
• • Development standards
memo.steering
Agenda Review Memo Page 4
Steering Committee Meeting
July 14, 1994
•
• The conversion of land use from existing single family residential to
commercial uses.
• Providing adequate off-street parking to serve the development of office
space.
• Maintaining the integrity of these office corridors without allowing office
uses to escape to the Highway 169 corridor.
HIGHWAY COMMERCIAL
The Highway Commercial zoning district is the most intensive commercial
district. This zoning district is primarily found along the Highway 10 and
Highway 169 corridors. The purpose of this zoning district is to provide high
impact commercial uses that typically require access onto the highway
system and may provide commercial opportunities for a broader area than
the City of Elk River. Issues associated with this district include the
following:
• Development standards.
• Avoiding the appearance of strip commercial along the major corridors.
• How far north along Highway 169 and east and west along Highway 10
should the Highway Commercial district extend.
• Re-evaluating some of the uses that are currently allowed within the C3
district that may be more appropriate in other zoning districts (i.e., light
industrial).
PLANNED UNIT DEVELOPMENT
The Planned Unit Development zoning district should be established at the
time a development proposal is made. Because of the permits required, the
City has greater control reviewing PUD projects. Elk Park Center is one
example of a commercial PUD development. Under the right conditions, a
Planned Unit Development can be used to benefit both the developer and the
City in achieving a quality project.
Issues associated with PUD's:
• Use Planned Unit Development where appropriate.
• Establish Planned Unit Development's that can be administered
effectively.
• Planned Unit Development's should provide flexible standards while at
• the same time creating a project that has overall qualities greater than a
typical development.
memo.steering
Agenda Review Memo Page 5
Steering Committee Meeting
• July 14, 1994
AGENDA ITEM 7
Please refer to Exhibits I-L for additional information.
ITEM 8: GOALS & POLICIES FOR COMMERCIAL DEVELOPMENT
The current Growth Management Plan lists the following goals and policies:
1. Goal:
Encourage the development of a quality community which
retains a semi-rural atmosphere while providing necessary
commercial development to serve a growing residential
population.
Policies:
• Guide the type and location of development to achieve an
IIorderly development pattern consistent with the semi-rural
character of the community.
• Provide for a Planned Unit Development approach which,
through the use of site design standards, allows for a mix of
compatible commercial and residential development in
appropriate areas.
2. Goal:
Maintain and encourage the continuation of a well designed
employment and business opportunity in close proximity to the
community.
Policies:
• Direct future commercial development to those sites which
support and strengthen the existing downtown area.
• Limit development of strip or scattered site commercial and
industrial operations along the City's major roadways.
• Allow commercial expansion only in close proximity to existing
services.
•
memo.steering
Agenda Review Memo Page 6
Steering Committee Meeting
July 14, 1994
• To evaluate all proposals for commercial and industrial
development to determine impact on municipal and natural
systems.
3. Goal:
Preserve, maintain and/or strengthen the physical and visual
qualities unique to the community.
Policies:
• Adhere to controls as to the size and placement of signage and
landscaping for commercial and industrial applications within
the City limits.
While evaluating the current goals, the Steering Committee may want to
consider some of the following issues:
• Consider establishing a neighborhood commercial zoning district which
• allows uses that are convenience oriented and compatible with the
residential areas.
• Consider establishing a commercial zoning district that would fall
between the office district and highway commercial zone. This district
would allow an intermediate type commercial district in locations where
the most intensive highway commercial zones are not appropriate yet
provide exceptional retailing opportunities for uses other than office.
• Consider what planning or redevelopment efforts could occur to maintain
vitality in the downtown area.
•
memo.steering
ITEM NO. 4
• INVENTORY QP.CQMMERCIAL PROPERTY
.................................................................................................................................................................................................................................
..................................................................................................................................................................................................................................
0 C1/ Central Commercial - 55 Acres
0 C2/ Office District - 56 Acres
0 C3/ Highway Commercial - 622 Acres
0 Planned Unit Development
(Business Park) - 140 Acres
TOTAL ACRES DEVELOPED • 469 ACRES
• TOTAL''ACRES VACANT 404 ACRESIiigg
0 Restrictive Areas for Development - 27 Acres
• TOTAL 27 ACRES
TOTAL NET ACRESAVAILABLEFOR.DEVELOPMENT 377 ACRES
..:HIGH.ABSORPT10iN RATE • 377 ACRES ..
14 AC/YR
Years Worth of Commercial Property 26.9 Years
'LOW>ABSORPTION RATE 377 ACRES
=- 2 AC/YR
Years Worth of Commercial Property 188.5 Years
Page 1 of 2
•
TOTAL ACRES WITHIN CURRENT URBAN
SERVICE AREA 375 ACRES
0 Developed - 227 Acres
0 Vacant - 148 Acres
0 Restricted - 10 Acres
0 NET AVAILABLE ACRES - 138 ACRES
TOTAL ACRES OUTSIDE CURRENT URBAN
SERVICE AREA 499 ACRES
0 Developed - 242 Acres
0 Vacant - 257 Acres
0 Restricted - 17 Acres
i 0 NET AVAILABLE ACRES - 240 ACRES
Page 2 of 2
•
N. 1/2 S.A . 1/L SEE. 37 T. 33
•
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EXHIBIT E
• TENTATIVE SCHEDULE
FOR UPCOMING STEERING COMMITTEE MEETINGS
March 9 URBAN SERVICE AREA
(completed) -East Highway 10
-Service District East
-Possible Modification to the
North
(Conclude Urban Service Area)
March 23 TRANSPORTATION
& April 6 -North East-West Route
(completed) -Hwy. 169 & 10 Corridor
-Future Collectors/Arterials
April 20, May 4 COMMERCIAL/INDUSTRIAL
& May 25 -Location
• (Industrial completed) -Redevelopment
Opportunities
HOUSING
-Mix of Housing/
Land Use
-Housing Maintenance
-10 Acre Minimum Lot Size
PARKS & RECREATION
LAND USE PLAN/ZONING MAP
REVIEW GOALS & POLICIES OF
COMP PLAN
PLANNING COMMISSION PUBLIC
HEARING
411 CITY COUNCIL PUBLIC HEARING
s:planning:sc:schedule