10.2. SR 06-07-2021it ci
Elk*
River
Request for Action
To
Item Number
Mayor and City Council
10.2
Agenda Section
Meeting Date
Prepared by
Work Session
June 7, 2021
Zack Carlton, Planning Manager
Item Description
Reviewed by
Concept Review: MMPA Zoning and Land Use
Cal Portner City Administrator
Amendment
Reviewed by
Action Requested
Review the proposed project and provide the applicant with informal, non -binding, feedback.
Background/Discussion
The applicant, Minnesota Municipal Power Agency (MMPA), owns
approximately 300 acres of property along the northern edge of the
city. They also own another adjacent 85 acres over the city limits in
Livonia Township. MMPA is looking at development opportunities
for this parcel and has proposed a rezoning and land use amendment
to allow industrial development.
The proposal rezones the property to I-3 (General Industrial), which
allows a range of industrial uses that do not require city services. As
this property is well outside the urban service area, the uses are limited
to those that do not require sewer/water, and the I-3 district reflects
those limitations. The target industries include energy intensive and
high -paying manufacturing and technology -oriented uses — data
centers are of primary focus. The applicant's narrative describes
characteristics of data centers and their fit within the community.
Comprehensive Plan
The Comprehensive Plan guides this property for
mining/development reserve and rural residential uses, which matches
the zoning and adjacent land uses. The applicant also references
multiple locations within the Comprehensive Plan that support their
desired development as an industrial/job creator.
Considerations
While the use does meet some of the goals of the Comprehensive Plan, the City Council should consider the
following:
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional
service, and community engagement that encourages and inspires prosperity.
P I I E I 1 0 IY
NATURE
Updated. August 2020
1. The I-3 zoning district does not currently allow data centers, but the district does allow a variety of intense
industrial uses (see attached ordinance) and should the property be rezoned; those uses would be allowed
by right (permitted or conditional).
2. To allow data centers, the use would need to be added through an ordinance amendment process. The
applicant also notes the possibility of an overlay district that could be used to limit the uses on the site.
Such an overlay does not exist now but could be created as part of a formal application.
3. Industrial uses may not be compatible with the existing residential users to the east — large lot residential
and agricultural uses, or the city's long term growth plans for the area, which also include urban residential
uses. While the city does have numerous locations where industrial uses are near residential areas, those
have been in place for some time and are not being introduced.
4. Traffic from industrial uses typically includes larger and more frequent vehicle trips (manufacturing and
warehousing). The adjacent city street is designed to handle larger trucks as two gravel mines are
immediately adjacent the subject parcel, and there are acceleration and deceleration lanes on Highway 169.
The City Council should consider the full impacts, both positive and negative, in reviewing the proposed concept
application.
Financial Impact
None
Mission/Policy/Goal
■ Support the growth and development of the city.
■ Address changing needs within the community.
■ Provide industrial and job creating opportunities.
Attachments
■ Location Map
■ Applicant's Narrative
■ I-3 Zoning Ordinance
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Case No: CR21-03
El, -
River
t4MW1t
WnneWa MiArn 6pal Power Agency
MMPA Project Narrative
Concept Review - Project Narrative
Minnesota Municipal Power Agency Parcels 75-102-2000, 75-
102-3201, 75-103-1105, and 75-103-1400
Action Requested:
Review the proposed project and provide the applicant with informal/non-binding
feedback.
Project Background:
Proposed zone change to allow development opportunities that align with the
Minnesota Municipal Power Agency's goal to support economic development in
member communities.
Minnesota Municipal Power Agency (MMPA)
The Minnesota Municipal Power Agency (MMPA) is a Joint Action Agency with twelve
member communities including the City of Elk River.
MMPA is the wholesale power supplier to its member communities including the City
of Elk River. We have developed rate structures and acquired land and land rights in
our member communities to support our economic development objectives.
MMPA supports economic development in our member communities. As a result, we
have relationships with economic development staff and city management. A
representative of each community sits on MMPA's Board and understands the Agency's
desire to promote economic development for our members.
MMPA proposes to develop 386 acres on the north side of the City of Elk River to allow
development of general industrial uses including datacenters. 301 acres of the site is
within the City limits of Elk River. The remaining 85 acres abuts the northern City limits
in Livonia Township.
MMPA's development concept seeks to offer ahigh tech industrial development
environment targeting uses consistent with technology -oriented and high -paying
employment in support of Elk River'sjob creation goals.
Proposed Project:
MMPA proposes a zoning change to allow General Industrial (1-3) uses that will be a
benefit to the city. Current zoning for the parcels is R1 a — Single Family Residential and
CRT - Commercial Reserve Transition and does not provide the needed flexibility for
long-term economic development that MMPA envisions. As described within this
project narrative, the 1-3 - General Industrial zoning allows a range of uses that align
with the MMPA's goals and respond to the goals and policy direction outlined within
the Comprehensive Plan.
Page 1 of 7
MMPA
WnneWa MiArn 6pal Power Agency
MMPA Project Narrative
Project Location:
The subject property includes four parcels totaling 300.75 acres located in the northeast
corner of Section 2, Township 133 N, Range 26 W, and the northwest corner of Section
3, Township 133 N, Range 26 W. The parcels are currently vacant, each including a
combination of wooded vegetation, open fields, wetlands, and vacant outbuildings.
The western half of the subject property is currently zoned CRT - Commercial Reserve
Transition and the eastern half of the subject property is zoned R1 a — Single Family
Residential. Development Reserve and Residential are identified as future land uses for
the subject property according to February 20, 2015 Land Use Map. Future land use
guidance will be updated as part of the Comprehensive Plan Update.
Adjacent uses vary from large lot residential and open space to mining operations to
the southwest. Additionally, the existing landfill and identified expansion area is located
to the west of US 169.
The location of the subject property is an ideal location for the proposed use for a
number of reasons. Regionally, the City of Elk River is well positioned with major
transportation connections via US Highway 169 and US Highway 10. Additionally, the
relationship to surrounding economic hubs provides proximity for customer base and
further economic growth. Locally, the subject property is well suited in relationship to
the surrounding land uses. Higher intensity uses to the west include the landfill and
mining operations, and the proposed use provides a lower intensity transition to the
east. Additionally, the use increases the use of US Highway 169 as a commercial
corridor.
Project Narrative:
Description/scope of proposed project
MMPA supports the City of Elk River in implementing its Strategic Vision to promote
and encourage the expansion of jobs and business growth within the city.
The 1-3 - General Industrial district is intended to provide shovel ready sites for energy
intensive uses and to promote the addition of high -paying manufacturing and
technology -oriented employment.
The 1-3 - General Industrial district will targetjob creation, improved tax base, and
efficient development costs. The proposed project will be structured to encourage
intensive, efficient, environmentally responsible use of land and create strong business
environments in the Elk River community.
Page 2 of 7
t4MWIt
i1�n^ ota Municipal Flower Ane —
MMPA Project Narrative
MMPA owns and develops land for the benefit of its member communities, including
Elk River.
The Minnesota Municipal Power Agency (MMPA) owns 386 acres of land it proposes to
develop. 301 acres of which is within the City limits of Elk River. The remaining 85 acres
abutting the northern City limits in Livonia Township.
Current zoning for the parcels is Residential (R1-a) and Commercial Reserve Transition
(CRT) and does not support the long-term economic development that MMPA
envisions.
1-3 Permitted Uses:
Section 30-1294.b of the Zoning Ordinance identifies the permitted uses of the 1-3
General Industrial district. The permitted uses include specific uses such as business
offices and research and development. Conditional uses include a broader range of uses
from heavy manufacturing to foundry, casting, or forging metals. At this time, some of
the high-tech industries that are desirable are not allowed as a permitted or conditional
use (e.g., Datacenters). A text amendment may be required to achieve the desired use.
Aside from the alignment with the overall purpose of the 1-3 district, it is also desirable
as uses are not required to connect to city water or sanitary services.
Proposed Use Description:
As stated, this proposed project is intended to support the MMPA's goal of supporting
economic development for its member communities. Though no specific developments
are currently identified for the subject property, the MMPA is pursing a zone change to
create shovel ready sites that would increase energy use within the MMPA system, while
also bringing new jobs to the community and serving as a catalyst for future economic
development.
The MMPA would like to purse a zone change to 1-3 — General Industrial for the subject
property to allow for the development of high tech industries (e.g., advanced
manufacturing and datacenters). MMPA recognizes that a change to 1-3 permits a range
of industrial uses, but these uses may not meet the primary development goals of
supporting economic growth and increasing power usage.
Though specific development details for high tech industries are unknown at this time,
the following table outlines the development details requested per the Concept Review
Application for datacenter developments as an example. For reference, four datacenters
located in the Twin Cities metro have been highlighted in Attachment A. These
examples provide a reference for the aesthetics and building materials generally found
in the datacenter industry.
Page 3 of 7
MMPA)k
WnneWa MiArn 6pal Power Agency
MMPA Project Narrative
The hours of operation for technology oriented, high energy
using industries will range from a standard business day to 24-
Hours of
hour operations. For example, datacenters generally operate
Operation
24/7 and have staff onsite at all times. During all hours of
operation, there are no specific emissions or nuisances (noise,
smell, etc.) emitted from the use.
The number of employees may vary by development type. For
Number of
the example of a datacenter, the number of onsite employees
Employees
will generally peak during normal business hours, with a
reduced number of employees onsite during the overnight
shift.
Number of
There are currently no parking stalls on site, and all parking and
parking stalls,
loading bays would be constructed with the proposed
existing, and
development. Parking and loading areas would be constructed
additional
to meet the City's parking requirements.
Any screening or security fencing will be determined with the
specific facility use. Datacenters and many high tech industries
Proposed
typiGally do not include outdoor storage that would warrant
Screening
any screening. Onsite backup generators are a common
element of datacenter developments which are typically
screened from view using similar exterior building materials.
Building materials for datacenter developments include high
quality materials and design. Specific materials would be
determined with the specific project, but building materials
Building
may include brick, stucco, concrete, steel, and glass. In
Materials
particular, the datacenter industry is considerate of
sustainability throughout many elements of the practice,
including the use of sustainable building materials throughout
the development process.
Signage
Monument signs, if any, would comply with city requirements.
Anticipated signage may be limited to the building fagade.
Outdoor
No outdoor storage is anticipated with datacenter or high tech
Storage
industry development. Outdoor storage for other industrial
uses would comply with city requirements.
Page 4 of 7
t4MW1t
i1�n^ ota Municipal Flower Ane —
MMPA Project Narrative
Consistency with the City of Elk River Comprehensive Plan:
The proposed development is consistent with the City of Elk River's comprehensive planning
objectives in a number of ways. Consistencies with both the current 2014 Comprehensive Plan
and 2020 Comprehensive Plan Update Existing Conditions Memorandum are identified in the
able below.
Comprehensive Plan Policy Consistency with Proposed Project
Encourage Industrial Historically, Elk River has enjoyed a diverse and strong
Development industrial base. This base thrives with a regionally
recognized labor force and business friendly posture.
(pg. 40, 2014 nsi Compreheve
Plan; pg. 21 & pg. Comprehensive
Opportunity and Desire to Expand Industrial Uses in the
20
Existing Conditions City.
Memorandum) There is a desire to increase land available forjob growth,
primarily light industrial uses, and business parks.
However, there is currently limited large lot industrial sites
available in the Citv. makina it essential for the
Comprehensive Plan to identify appropriate opportunities,
while also identifvina market constraints to this arowth.
The proposed project provides an opportunity to expand
industrial uses, while also serving as a catalyst for future
development potential.
Key Takeaways from the 2020 Existing Conditions
Memorandum
Trends in the industrial market indicate a demand for
additional space set aside for continued growth in this
sector:
Elk River has seen consistently affordable rents over the
years in the industrial sector making it an attractive
community for businesses looking for space in the
Minneapolis/St. Paul Region. However, there is limited
available space for additional industries to move in and the
County has lower vacancy than the Twin Cities Regional
Market.
There is ooportunity to stav comaetitive in the reaion b
increasina available industrial land lesoecially larae lots). In
addition, Elk River is also at the crossroads of US Highway 10
and US Highway 169 making it well -positioned to attract
major industries looking for access to the region.
Page 5 of 7
t4MWIt
i1�n^ ota Municipal FIO er Ane —
Comprehensive Plan Policy
MMPA Project Narrative
Consistency with Proposed Project
MMPA's development concept is supportive of the City's
needs. The development concept addresses this market
demand for large lot sites suitable for targeted industrial
growth and enhance the City's competitiveness in the
region.
MMPA's development concept seeks to attract high -value,
environmentally conscious industrial use that limits the
potential for adverse impacts on adjacent land uses.
Preserve and maintain the As Energy City, Elk River seeks to promote sustainable
environment and energy efficient forms of development.
(pg. 7, 2014 Comprehensive MMPA is committed to providing its members with clean,
Plan) renewable energy. The Agency's portfolio of renewable
resources supports meeting the Minnesota Renewable
Energy Standard (RES) and customer demand for
renewable energy.
The proposed project includes planning for potential
significant solar energy resources and is supportive of
MMPA's clean energy commitment.
MMPA seeks to preserve and protect wetland areas
MMPA seeks to create and maintain a naturally vegetated
buffer sufficient to preserve the value and function of
regionally -significant wetlands on and abutting the
proposed project site.
Complement existing uses,
The subject parcel is currently zoned as combination of
protect the natural
Residential (R1-a) and Commercial Reserve Transition (CRT).
environment, and respect
The parcel is located proximate to the City's landfill and to
surrounding
active mining operations. Both of which are expected to
neighborhoods.
continue operations for the foreseeable future.
(pg. 43, 2014 Comprehensive
The proposed development seeks to change the current
Plan)
zoning classifications.
MMPA intends for the proposed development to be a
community asset of greater value for Elk River than would
otherwise be derived from the zoning identified in the
City's current Land Use Plan.
Page 6 of 7
t4MW1t
i1�n^ ota Municipal Flower Ane —
MMPA Project Narrative
Comprehensive Plan Policy Consistency with Proposed Project
Expanding the Tax Base -
The current Comprehensive Plan identifies expanding the
Support the City's goal of
tax base and attracting jobs as key aspects of Elk River's
job creation
future require particular attention and action by the City.
(pg. 123-126, 2014
MMPA's concept seeks to encourage intensive and efficient
Comprehensive Plan)
use of land for industrial development resulting in
correspondingly higher tax capacity value and market value
stability.
High quality jobs, Retaining jobs in the community
MMPA's development concept seeks to offer a large -site
Industrial environment targeting uses consistent with
technology -oriented and high -paying employment.
Planning Tools and Opportunities:
The project narrative describes the proposed development direction for the subject
parcels. It is understood that future applications may come before the City of Elk River
to pursue needed zone change, land use plan amendments, etc. as development is
pursued. Based on the discussion of the concept review with the Planning Commission
and City Council, the direction for these applications will be determined. This will
include the determination of the proper zoning district, land uses, and other available
tools. For example, tools that may be developed to manage development for the
specific growth area. An overlay is a tool that could be explored for the US 169 corridor
or the northern business park. This tool could be used to regulate and manage the uses
and development regulations within a defined area.
Following discussions with the Planning Commission at the May 2St" Hearing, the
following tools or development options were discussed:
Text amendment to the 1-3 District to allow high tech industries.
Overall district that would provide additional regulations for the surrounding areas
Development of a new zoning district that could be used to regulate uses and
development standards for the subject property and surrounding uses as warranted.
Page 7 of 7
Existing Datacenters in the Twin Cities Metro
Stream - Chaska
Address: 1708 West Creek Lane, Chaska, Minnesota
Website: https://www.streamdatacenters.com/datacenters/minneapolis-i/?gclid=CjOKCQjwvYSEBhDjARIsA-
JMn0liOa_IPs1fsOmFTOgPcBBnfSCPWaTgdfMJFuLla93oTnWc1 Ekvi_LkaArQoEALw_wcB&gclsrc=aw.ds
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Flexential - Chaska
Address: 3500 Lyman Blvd, Chaska, Minnesota
Website: https://www.flexential.com/data-centers/mn/minneapolis/chaska-data-center
Existing Datacenters in the Twin Cities Metro
DataBank MSP2 - Eagan
Address: 3255 Neil Armstrong Blvd, Eagan, Minnesota
Website: https://www.databank.com/data-centers/minneapolis/msp2/
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One Neck - Eden Prairie
Address: 10290 W 70th Street, Eden Prairie, Minnesota
Website: https://www.oneneck.com/datacenter-colocation/minneapolis
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PROPERTY LOCATION
MMPA Concept Review
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MMPA Concept Review
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■ Conceptual Development Area
Conceptual Development Area -
Livonia Township
■ Wetland Areas
Conceptual Site Access
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CONCEPTUAL DEVELOPMENT SITING
MMPA Concept Review
1
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Sec. 30-1294. - 1-3 general industrial district.
(a) Purpose. The 1-3 district shall serve as a general industrial zone to provide area for industrial
development not requiring municipal water and sewer. This district is appropriate for manufacturing,
warehousing, and similar industrial uses because of access to warehousing. These areas are intended
to encourage the development of industrial uses which are clean, quiet, and free of hazardous or
objectionable elements such as noise, odor, dust, smoke, glare, or other pollutants. These industries
shall be compatible with each other and with surrounding land uses.
(b) Permitted uses. Permitted uses in the 1-3 district are as follows
(1) Bottling and distribution.
(2) Business offices.
(3) Manufacturing, light.
(4) Motor vehicle repair shops.
(5) Research and development facilities.
(6) Warehouse spaces.
(7) Wholesale businesses.
(c) Accessory uses. Accessory uses in the 1-3 district are as follows:
(1) Parking lots.
(2) Retail sales, provided:
a. The retail sales activity is not located in an administrative office facility, but is located within
a business, the principal use of which is not commercial sales.
b. The retail sales activity does not occupy more than 15 percent of the gross floor area of the
occupied quarters.
c. The retail sales activity is accessory to the principal use.
d. No sign identifying the retail sales is visible from the outside of the building.
(3) Signs (as permitted in section 30-851 et seq.).
(4) Structures, accessory.
(d) Conditional uses. Conditional uses in the 1-3 district are as follows:
(1) Animal and poultry processing.
(2) Bus, motor vehicle, and implement storage, maintenance and repair.
(3) Chemical storage/bulk storage of fuel, e.g., petroleum.
(4) Concrete/asphalt products and processing.
(5) Commercial recreational facilities.
(6) Foundry, casting, or forging metals.
(7) Government facilities.
(8) Grain and feed elevators and mills.
(9) Kennel, commercial.
(10) Landscaping contractor yards.
(11) Manufacturing, heavy.
(12) Meat or fish packing.
(13) Ministorage.
(14) Outdoor storage (accessory to principal use).
(15) Railyards.
(16) Recycling processing centers.
(17) Salvage yards.
(18) Sexually -oriented land uses.
(19) Single-family residential dwelling units accessory to principal uses, provided that:
a. The nature of the principal use of the property makes it necessary or highly desirable from
both the property owner's and the city's perspective to have a 24-hour-a-day caretaker or
security person reside on the property.
b. The proposed dwelling unit is designed for and will be used exclusively by caretakers or
security personnel responsible for the security of the property and the principal use thereof.
c. The proposed dwelling unit will be occupied by no more than two persons, neither of whom
may be under 18 years of age.
d. There shall be only one dwelling unit per lot or, if one principal use is located on several
adjoining lots, per principal use.
e. The proposed dwelling unit will not exceed 800 square feet in size and will be located within
a building serving the principal use of the property which is no less than 10,000 square feet
in size.
f. The principal use of the property is not of such a nature that it would be dangerous or
hazardous to residents of the proposed dwelling unit.
g. The proposed dwelling unit meets all other requirements of this Code and the Minnesota
Uniform Building Code for occupancy as a dwelling unit by a single family. The city council
may, if it finds it necessary to do so for the protection of the health, safety and welfare of
persons who may occupy the proposed dwelling unit, impose additional reasonable
requirements or conditions on the construction and use of the dwelling unit.
h. The conditional use allowing such a dwelling unit in an industrial zone is deemed to be unique
to the principal use of the property and the ownership of the property and the principal use.
Any conditional use permits granted under this section shall therefore automatically expire if
the principal use of the property changes or the ownership of either the property or the
principal use of the property changes.
(20) Truck terminals.
(e) Architectural standards. No provision of section 30-938 except subsection 30-938(2) pertaining to
building finish and subsection 30-938(3) pertaining to roofs applies to this district.
(Ord. No. 10-12, § 3, 8-2-2010; Ord. No. 12-11, § 8, 7-16-2012; Ord. No. 18-03, § 8, 3-19-2018)
Editor's note— Ord. No. 18-03, § 8, adopted March 19, 2018, renumbered § 30-1295 as § 30-
1294.
Minnesota Municipal Power AgencyConcept Review
Background Redefine 169 impacts?Truck entrance/exits to 169Abuts existing gravel minesGuided for CRT and Rural ResidentialData Center3 District-IIndustrial uses Potential land
use change and rezoning
Considerations Possible 169 Redefine concerns Traffic, fumes, noise, aesthetics, etc.Compatibility with nearby propertiesDifferent zoning (new district?)Limit with overlay (new ordinance)by
right (permitted and conditional)3 district allows a variety of potential undesirable uses allowed -I
Action Requested guide a possible future application. binding, feedback to -Provide the applicant with informal, non
1 May 25, 2021Elk River, MinnesotaConcept Review
2 in our member communities.Supports economic development Elk River. member communities including Wholesale power supplier to its the City of Elk River. member communities including
Joint Action Agency with twelve Who is MMPA?
3 and MMPA Industrial uses that will benefit the City of Elk River MMPA proposes a zoning change to allow General •Economic DevelopmentSupports MMPA its member communities, including
Elk River.MMPA owns and develops land for the benefit of •City of Elk River.MMPA owns 386 acres on the north side of the •
4 development drivercommunity asset and economic to be a MMPA intends for the proposed development •envisions for the site. MMPA term economic development the longCurrent zoning does
not support •development ready site.MMPA desires a zone change to create a PurposeConcept Review
5 economic growth.industrial use to position Elk River for continued value, environmentally conscious -Attract highGenerate new business, jobs, and investment.•paying employment.-oriented,
high-Target uses consistent with technology•impacts on adjacent land uses. Development concept that limits adverse •Proposed Development Concept
6 No city water/sewer required•Limited traffic generator•Drive economic development•Data Centers•tech Industries-High•Target Industries
7 LocationSubject Property Township.acres is in Livonia The remaining 85 limits of Elk River. is within the City 301 acres of the site
8 District.Transition (CRT) Commercial Reserve mining operations, and City’s landfill, active Parcel located near the ContextSubject Property
9 Subject Property
10 Conceptual Site Plan
11 Residential•Reserve/MiningDevelopment •2015 Land Use Land Use Alignment
12 Topography and Wetlands•EnvironmentalOnsite well and septic•Extension of power utilities•UtilitiesTraffic generation varies by use•Exiting turn lanes on US 169•Proposed access from
Baldwin Street •Transportation Site Considerations
13 region.Enhances the City’s competitiveness in the •the City’s Comprehensive Plan. MMPA’s development concept is supportive of sites suitable for targeted industrial growth. lot -Addresses
market demand for large•Supports Elk Rivers’ Strategic Vision
14 development in our member communities. MMPA actively supports economic •with clean, renewable energy.MMPA is committed to providing its members •development. sustainable and energy
efficient forms of MMPA supports the City’s goal to promote Supports Elk Rivers’ Strategic Vision
15 Appropriate Land Use•New Zoning District•Overlay District•Additional Zoning Tools•uses (I3, PUD, I2)Appropriate Zoning Districts and/or allowed •Guidance-Concept Review
16