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Planning Commission Packet - May 26, 2026 Planning Commission Regular Meeting & Work Session Agenda Tuesday, May 26, 2026 6:30 PM Elk River City Hall ▪ Regular meeting in Council Chambers ▪ Work Session meeting in Council Chambers immediately following regular meeting 1. CALL MEETING TO ORDER 2. CONSIDER AGENDA 3. CONSIDER MINUTES 3.1 DRAFT Minutes - April 28, 2026 4. PUBLIC HEARINGS An opportunity for the public to express their opinions and raise questions pertaining to the agenda item. All comments become part of the official public record. For this reason, all comments must be made at the podium so they can be heard and recorded. Comments may also be provided in writing. There will not be deliberations, discussions, or answers to questions until the hearing is closed. It is important to be courteous and allow each presenter to comment before adding additional testimony. 4.1 Ordinance Amendment and Conditional Use Permit: Data Center, Michael Margulies - 19178 Industrial Blvd NW 4.2 Conditional Use Permit: Habitat for Humanity build site, ISD 728 - 900 School St NW 4.3 Ordinance Amendment: Oakwater Ridge PUD Standards Related to Signage, Capstone Homes 4.4 Ordinance Amendment: Business Park Zoning, Onyx Strategic Partners 4.5 Ordinance Amendment: Business Park Zone, Lift PT 5. GENERAL BUSINESS Items in which the information is presented by city staff or consultants, then deliberation and action occur. General Business items are not opportunities to receive or provide public input. However, the presiding officer may, at its sole discretion, solicit public feedback. 5.1 Resolution 26-01: Approving the Sale of Public Property to O'Brien Holdings, LLC 6. COUNCIL LIAISON UPDATES 7. MOTION TO ADJOURN REGULAR MEETING 8. WORK SESSION Work Sessions are less formal meetings to encourage dialog. Official action or votes are not typically taken. At the conclusion of a discussion, a simple consensus provides staff direction for execution of the item. This portion of the agenda is audio recorded but not video recorded or broadcast. Work Sessions are open to the public; however, visitors who wish to provide input must be invited by the presiding officer, assume a seat at the discussion table and provide their full name and address for the official record. 8.1 Concept Review: Subdivision and Commercial Development along Highway 10 Page 1 of 114 The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity 9. MOTION TO ADJOURN Page 2 of 114 Meeting of the Planning Commission Held at the Elk River City Hall Tuesday, April 28, 2026 Members Present: Chair Perry Beise, Commissioner Eric Johnson, Commissioner Dennis Booth, Commissioner Dornan Bland, Commissioner Anthony Kaba, Commissioner James Lang, Councilmember Jennifer Wagner Members Absent: Commissioner Robert Rydberg Staff Present: Senior Planner Chris Leeseberg and Recording Secretary Katie Porath 1. CALL MEETING TO ORDER Pursuant to due call and notice thereof, the meeting was called to order at 6:30 p.m. 2. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was recited. 3. CONSIDER AGENDA Moved by Commissioner Johnson and seconded by Commissioner Booth to approve the agenda. Motion carried 6-0. 4. CONSIDER MINUTES Moved by Commissioner Johnson and seconded by Commissioner Booth to approve the following consent items as outlined in their respective staff reports. Motion carried 6-0. 4.1 DRAFT Minutes - March 24, 2026 5. PUBLIC HEARINGS 5.1 Conditional Use Permit: Habitat for Humanity build site, ISD 728 - 900 School St NW Mr. Leeseberg presented the staff report. Moved by Commissioner Johnson and seconded by Commissioner Booth to continue the public hearing to May 26, 2026. Motion carried 6-0. Page 3 of 114 Planning Commission Minutes April 28, 2026 --------- Page 2 of 3 6. GENERAL BUSINESS There was no general business. 7. COUNCIL LIAISON UPDATES Councilmember Wagner updated the Commission that the request by Sherburne County to change their land to Business Park zoning was approved at the last council meeting. 8. MOTION TO ADJOURN REGULAR MEETING Moved by Commissioner Johnson and seconded by Commissioner Booth to adjourn the meeting. Motion carried 6-0. The regular meeting adjourned at 6:32 p.m. Chair Beise called the work session to order at 6:32 p.m. 9. WORK SESSION 9.1 Concept Review: Ordinance Amendment for the Business Park, Lift PT - 11110 Industrial Cir NW Mr. Leeseberg presented the staff report. Chair Beise commented that the ordinance currently permits chiropractic as an accessory use. Commissioner Bland asked why certain items have been removed from the ordinance. Mr. Leeseberg responded that gyms typically ask for taller ceilings. Commissioner Kaba asked if six spots was sufficient parking. Kelsey Fransen, applicant, owner of Lift PT, responded that only one patient is seen at a time and there is limited staff on site, therefore six spots is more than enough. The Planning Commission was supportive of the concept. Commissioner Johnson commented that staff should look into changing chiropractics as accessory use. Councilmember Wagner asked if the item needed to also go to the City Council. Mr. Leeseberg will talk to the applicant and explain her options to have a concept review by the City Council or submit an application for an Ordinance Amendment. 10. MOTION TO ADJOURN Moved by Commissioner Johnson and seconded by Commissioner Booth to adjourn the meeting. Motion carried 6-0. The meeting adjourned at 6:41 a.m. Page 4 of 114 Planning Commission Minutes April 28, 2026 --------- Page 3 of 3 Minutes prepared by Katie Porath. ___________________ Perry Beise, Chair ___________________ Justin Dunford, City Clerk Page 5 of 114 The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity Request for Action To Planning Commission Item Number 4.1 Meeting Date May 26, 2026 Prepared By Zack Carlton, Community Development Director Item Description Ordinance Amendment and Conditional Use Permit: Data Center, Michael Margulies - 19178 Industrial Blvd NW Reviewed by Chris Leeseberg Action Requested Open the public hearing, receive public comment, and continue the hearing to June 23, 2026. Background/Discussion The applicant, Michael Margulies, has submitted two land use applications in support of a proposed data center at 19178 Industrial Blvd NW. The property is located within the city's I-1 (Light Industrial) zoning district and is approximately 3.23 acres in size. The property includes an existing 62,000 SF industrial building that had been in operation until late last year. The applicant proposes modifying the existing building to house a data center. Proposed changes include demolishing 5,000 SF of the building to improve the loading dock area and adding cooling equipment along the south-west corner of the building. The data center proposes closed loop cooling, which does not require large volumes of water, but instead uses cooling equipment to keep the computers at a safe operating temperature. Submitted applications include an ordinance amendment to add data centers as an allowed use within the zoning district and a Conditional Use Permit (CUP), anticipating that the use would require a CUP for zoning approval. Ordinance Amendment Application As data centers are not currently allowed in the I-1 zoning district, an ordinance amendment is required. This process gives the city an opportunity to proactively establish development standards for data centers anywhere within the district. Examples of standards that may be included are limiting their size, maximum energy use, cooling system, noise mitigation, and buffering requirements. The city is not required to add data centers as an allowed use, and the amendment process is designed to give our elected and appointed officials an opportunity to review the benefits and challenges before making a final decision. Conditional Use Permit Application The CUP is where the city reviews a specific project for a specific site. The application is reviewed against established standards within the ordinance. As a part of this process, the city can include specific conditions of approval to address potentially negative impacts of a project. These conditions must directly relate to the Page 6 of 114 proposed project. With this particular application, city staff and city officials will be reviewing the project against the standards established with the ordinance amendment and the CUP process. Public Hearing The city recognizes that data centers have raised important questions and concerns in our region and across the state. The city is seeking input from the public as we review these applications. A public hearing is an important step in this process and staff would like to collect questions and comments from the community to help inform the decision-making process. As data center technology is rapidly changing and can be technical at times, staff will review the feedback alongside the specific details of these applications. On June 23, 2026, the planning commission will review staff's findings and recommendations before making their formal recommendation to the City Council. Financial Impact None. Mission/Policy/Goal Appropriately govern in an ever-changing environment. Attachments 1. Location Map 2. Applicant's Narrative 3. Floor plan 4. Site Renderings 5. Presentation 6. Planning Commission, ERMU Data Centers Page 7 of 114 Page 8 of 114 19178 Industrial Blvd NW – Conditional Use Permit Narrative Applicant seeks a Conditional Use Permit under Section 30-651 et. seq. of the Elk River City Code to allow 19178 Industrial Blvd NW (the “Property”) to be used as a data center (the “Proposed Use”). Property Description and Use. The Property is a 3.223 acre parcel of land currently improved with two connected one-story concrete block and metal sided buildings with a total foundation area of 63,190 square feet. The buildings were constructed in phases during the period 1978-1997. The Property is in an entirely industrial area of the City and there are no residential properties located within 500 feet of any boundary of the Property. It has been used for industrial and manufacturing purposes since 1978. Zoning Status. The Property is currently zoned L-1 (Light Industrial). By separate application, Applicant is seeking to amend the Elk River City Code Section 30-1293(d) to add data center use as a conditional use in the L-1 (Light Industrial) Zoning District. Exterior Modifications. Applicant does not intend to make any modifications to the exterior modifications to the exterior of the buildings or to the site except to demolish approximately 5,000 square feet of the building to create a more efficient loading dock area. Proposed Use. The Proposed Use is a 58,000 square foot data center to be leased to one or more data center operators. Employment. The Proposed Use will create approximately 100 construction jobs during the period of construction for repurposing the building. The construction will take approximately six to nine months. Repurposing construction will commence in Summer, 2026. Upon commencement of operations, the Proposed Use will employ approximately 40 persons divided among three eight-hour working shifts. It is expected that no shift will have more than ten employees on site. Parking. The Property currently has 72 parking stalls. City Code does not have a specific parking requirement relative to data centers. City staff suggests that Elk River City Code Section 30-903(11) (Warehouse/Manufacturing) and specifically Section 30-903(11)(a) provides the best guidance for parking for this use. Section 30-903(11)(a) requires the following parking: “… one parking space for each two employees on the major shift or one parking space for each 2,000 square feet of floor area, whichever is greater, plus one space for each company motor vehicle when customarily kept on the premises.” Page 9 of 114 2 The likely maximum number of employees during the major shift is 10, thereby requiring 20 parking spaces. Alternatively, assuming approximately 58,900 square feet of floor area, the parking requirement would be 29 spaces. Therefore, current available parking is more than double the required parking. Satisfaction of Conditional Use Permit Requirements. Elk River City Code Section 30-654 sets forth the standards that must be met in order for a Conditional Use Permit to be issued. The Property and the Proposed Use satisfy all of the required standards. Specifically, the Proposed Use: 1. Will not endanger, injure or detrimentally affect the use and enjoyment of other property in the immediate vicinity or the public health, safety, morals, comfort, convenience or general welfare of the neighborhood or the City; 2. Is consistent with the Elk River Comprehensive Plan; 3. Will not impede the normal and orderly development and improvement of surrounding vacant property; 4. Will be served adequately by and will not adversely affect essential public facilities and services including streets, police and fire protection, drainage, refuse disposal, water and sewer systems, parks and schools; and will not, in particular, create traffic congestion or interference with traffic on adjacent and neighboring public thoroughfares; 5. Will not involve uses, activities, processes, materials, equipment and conditions of operation that will be detrimental to any persons or property because of excessive traffic, noise, smoke, fumes, glare, odors, dust or vibrations; 6. Will not result in the destruction, loss or damage of a natural, scenic or historic feature of major importance; and 7. Will fully comply with all other requirements of this Code, including any applicable requirements and standards for the issuance of a license or permit to establish and operate the proposed use in the city Page 10 of 114 Page 11 of 114 Page 12 of 114 Page 13 of 114 Page 14 of 114 Ordinance Amendment and CUP Michael Margulies Page 15 of 114 Ordinance Amendment §Ordinance Amendment to allow data centers in the I-1 (Light Industrial Zoning District). §Conditional Use requiring separate application. §Also impacts all I-2 Districts §Data centers are not currently allowed in any district §Existing two are legal non-conforming. §City can include standards for new data centers through this process. §Size, cooling, noise mitigation, screening, lighting, setbacks, etc. Page 16 of 114 Page 17 of 114 Conditional Use Permit §Proposal for a data center at 19178 Industrial Blvd §Approximately 60,000 SF existing building. §33 MW max load §Closed loop cooling §40 full-time employees for the 24-hour operation §Closest residence approximately 930 feet away §Applicant is preparing a noise study, ready for June 23, 2026, PC meeting. Page 18 of 114 Page 19 of 114 Page 20 of 114 Page 21 of 114 Page 22 of 114 Page 23 of 114 Action Requested §The commission will not act on this application tonight. (approve or deny) §Open the public hearing and receive comments and questions from the public. §Staff will document comments and note questions about data center standards and this project. §Return with additional information and findings at the next meeting. §Do not close hearing, continue to June 23, 2026. Page 24 of 114 City Council Meeting §The City Council will also hold a public hearing to receive feedback and questions on June 15, 2026. §City Council action (approve or deny) is planned for July 6, 2026. Page 25 of 114 ERMU §Mark Hanson, ERMU General Manager, will provide additional information related to the electrical demand and infrastructure. Page 26 of 114 Page 27 of 114 Potential Data Center at 19178 Industrial Blvd NW May 26, 2026, Planning Commission 8/13/2018 Mark Hanson, P.E. General Manager Page 28 of 114 2 Capacity: •Project will utilize exiting, underutilized capacity on distribution system. •Capacity needs beyond underutilized capacity will be restored at Developer’s expense. Distribution: •New feeders will be installed to carry 30 of the 33-megawatt load. •The remaining 3 megawatts will be carried by an existing feeder. Cooling: •A closed-loop cooling system is required. •Once filled, no additional water will be used for cooling. Infrastructure Impacts Page 29 of 114 3 Low Risk: •100% of all direct costs must be paid upfront by the developer. •ERMU will not perform work until estimated costs have been paid. •Monthly energy charges must also be pre-paid. Rate Stabilization: •Project represents a 50-60% increase in energy usage from one customer. •Higher revenues: •Help spread out overhead costs. •Fund operating reserves. •Increase revenue transfer to city as a payment in lieu of taxes. Financial Impacts Page 30 of 114 The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity Request for Action To Planning Commission Item Number 4.2 Meeting Date May 26, 2026 Prepared By Zack Carlton, Community Development Director Item Description Conditional Use Permit: Habitat for Humanity build site, ISD 728 - 900 School St NW Reviewed by Chris Leeseberg Action Requested Recommend, by motion, approval of the CUP allowing construction of an outdoor classroom space at Elk River Highschool, subject to the following conditions: 1. The applicant must submit documentation describing the standards against which the state is reviewing the space. 2. Commercial building permits will be required for the improvements. 3. The fencing along the north, east, and south faces must be 100% opaque. 4. The applicant must submit an updated site plan showing how the parking lot will be updated (striped) to address the changes to parking and circulation. 5. Staff approval of all updated plans, ensuring full compliance with state building and fire codes. Background/Discussion The school district is working with Habitat for Humanity to establish an outdoor classroom at the high school. This space supports the technical education program and provides students with an opportunity to construct a home throughout the school year. Students will be able to experience all phases of the construction process and at the end of the year, the home will be transferred to a residential parcel and conveyed to Habitat for Humanity. The proposed site is on the east side of the parking lot, behind the school and along Jackson Ave. The school plans to include an 8-foot fence around the construction site, and it will include a tool shed, electrical service, propane tank, construction materials and equipment, and the house that is being constructed that year. The proposed location impacts the existing parking and traffic circulation in the parking lot. The city has spoken with ISD 728 staff, and they are preparing a plan to address these impacts, which will likely require restriping on the east side of the parking lot. The city and school district are also working together to ensure the project complies with all state standards related to standard commercial building codes and educational/classroom spaces. Regarding inspections of the home itself, the school will coordinate all relevant inspections with the state rather than the city. Applicable Regulations The issuance of a Conditional Use Permit can be ordered only if the use at the proposed location: Page 31 of 114 1. Will not endanger, injure or detrimentally affect the use and enjoyment of other property in the immediate vicinity or the public health, safety, morals, comfort, convenience or general welfare of the neighborhood or the city. Construction activities within the project area will largely be limited to school hours and only during the school year. Some of the more technical aspects of the home building process (plumbing, electrical, etc.) will be completed by professionals, and that may occur outside the regular school day. With the proposed location in a parking lot and at least 500 feet from the nearest home, staff do not see a need to impose specific conditions to satisfy this standard. 2. Will be consistent with the comprehensive plan. The property is guided for public/institutional uses, supporting school operations. The use supports education in the trades, which will support the growth and development of the community. Staff do not see a need to impose specific conditions to satisfy this standard. 3. Will not impede the normal and orderly development and improvement of surrounding vacant property. As there are no vacant properties in the area, the site is already developed, and the proposed use does not require changes that would limit future development options for adjacent parcels, the proposed use will not impede the normal and orderly development and improvement of surrounding vacant or developed properties. Staff do not see a need to impose specific conditions to satisfy this standard. 4. Will be served adequately by and will not adversely affect essential public facilities and services including streets, police and fire protection, drainage, refuse disposal, water and sewer systems, parks and schools; and will not, in particular, create traffic congestion or interference with traffic on adjacent and neighboring public thoroughfares. The proposed use is a generally low-intensity educational use that will not generate excessive traffic. Adequate onsite parking is provided, and traffic access will not cause congestion or interfere with adjacent public roadways. The site is adequately served by existing public facilities and services, including streets, police and fire protection, drainage, refuse disposal, water, and sanitary sewer systems. Maintaining clear internal circulation of the site is of concern and staff have included conditions of approval to ensure the site continues to function efficiently for staff, students, and visitors. 5. Will not involve uses, activities, processes, materials, equipment and conditions of operation that will be detrimental to any person or property because of excessive traffic, noise, smoke, fumes, glare, odors, dust or vibrations. The proposed use will not involve activities, materials, or conditions of operation that would be detrimental to persons or property due to excessive traffic, noise, smoke, fumes, glare, odors, dust, or vibrations. While the use of power tools is expected, this will occur during normal business operations and the site is not immediately adjacent to any residential areas. Staff do not see a need to impose specific conditions to satisfy this standard. 6. Will not result in the destruction, loss or damage to a natural, scenic or historic feature of major importance. No additional impervious surfaces are proposed, and all work will take place within the existing parking lot. The proposal will not result in the destruction, loss, or damage to any natural, scenic, or historic feature of major importance. Staff do not see a need to impose specific conditions to satisfy this standard. 7. Will fully comply with all other requirements of this Code, including any applicable requirements and Standards for Page 32 of 114 the issuance of a license or permit to establish and operate the proposed use in the city. Staff and the school district have been in communication regarding permitting and the application of building codes to the site. As this is a unique operation, we have not finalized the process, but believe we are comfortable recommending approval of the project subject to the conditions outlined. Staff have recommended several conditions to ensure compliance with city code requirements. Financial Impact None. Mission/Policy/Goal Explain how this meets the city's mission, current policies and/or council goals Attachments 1. Location Map 2. Applicant's Narrative 3. Site Plan 4. Presentation Page 33 of 114 Page 34 of 114 Legal Description of Property That part of the Northwest Quarter of the Northwest Quarter of Section 34, Township 33, Range 26, Sherburne County, Minnesota, described as commencing at the northwest comer of said Section 34; thence South 00 degrees 02 minutes 29 seconds West, assumed bearing, along the west line of said Northwest Quarter of the Northwest Quarter 289.00 feet to the point of beginning of the land to be described; thence North 89 degrees 23 minutes 09 seconds East, parallel with the north line of said Northwest Quarter of the Northwest Quarter 180.00 feet; thence South 00 degrees 02 minutes 29 seconds West, parallel with said west line of the Northwest Quarter of the Northwest Quarter 230.00 feet; thence South 89 degrees 23 minutes 09 seconds West, parallel with said north line of the Northwest Quarter of the Northwest Quarter 180.00 feet to said west line of the Northwest Quarter of the Northwest Quarter; thence North 00 degrees 02 minutes 29 seconds East along said west line of the Northwest Quarter of the Northwest Quarter 230.00 feet to the point of beginning. The narrative is your opportunity to describe, promote, and sell your proposal to the Planning Commission and/or City Council before the meeting(s). Please fill in the following information explaining your request in detail (type N/A if not applicable). Describe the scope of your project (what is being proposed)? For example: we are proposing the construction of a new daycare facility or, to allow for a motor vehicle sales office with motor vehicle repairs in X-square feet of the existing building. The District is working with Habitat for Humanity to construct a house on the High School site. The construction will be part of the CTE curriculum for the students. The District is looking to install an 8' high, fenced in area, along Jackson Ave NW, that will contain the construction site. Within the fenced in area will be a shed, electrical service, propane tank, materials, scaffolding, and the house under construction. When the house is complete, it will be moved off site and the next project would start Hours of Operation 7:00AM-5:00PM Monday- Friday Number of Employees Six Number of parking stalls required by ordinance: City Ordinance Section 30- 903 outlines these requirements. None Number of existing and proposed parking stalls None Page 35 of 114 If screening, not associated with outdoor storage, is being proposed, what will it consist of? Fence slats if required What are the proposed building materials? The required building materials vary from zoning district to zoning district. Chain link fenced area to contain a home under construction that will be moved when complete Is outdoor storage being proposed? If yes, detail what is being stored, how much/many, and what is the proposed screening? City Ordinance Section 30- 807 outlines these requirements. There will be a small storage shed within the fenced area to store tools and equipment. Building materials will be stored within the fenced area. Page 36 of 114 Page 37 of 114 Conditional Use Permit ISD 728/ Habitat for Humanity Page 38 of 114 Page 39 of 114 Background §Construct an outdoor classroom space to support a residential construction class. §Fenced area where home will be built §Footings, storage shed, equipment, and home. §Creates an outdoor classroom. Page 40 of 114 Page 41 of 114 CUP §Staff and applicant working together on final layout §Building code application §Education, commercial, and residential standards §Impacts to the parking and circulation §Screening §Staff’s analysis finds all standards for approval of a CUP have been met, subject to the included standards to address the concerns. Page 42 of 114 Action Requested §Recommend, by motion, approval of the CUP with the conditions outlined in the memo Page 43 of 114 City Council Meeting §This item will go to the June 1, 2026, City Council meeting. Page 44 of 114 The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity Request for Action To Planning Commission Item Number 4.3 Meeting Date May 26, 2026 Prepared By Zack Carlton, Community Development Director Item Description Ordinance Amendment: Oakwater Ridge PUD Standards Related to Signage, Capstone Homes Reviewed by Chris Leeseberg Action Requested Recommend, by motion, approval of an ordinance amendment establishing standards for marketing and development signage within the Oakwater Ridge development. Background/Discussion Development of the first phase of the Oakwater Ridge subdivision is underway and the developer, Capstone Homes, is looking to begin marketing their project. In support of their efforts, the developer is hoping to install a series of signs on the landscaped berm running along Highway 10. The ordinance limits development signs to 64 square feet, but due to the location along a major highway, the developer has a desire to increase the size of the signs, up to 192 SF. As the request is above and beyond what is otherwise allowed under the ordinance, the applicant has submitted an application for an ordinance amendment to update the development standards for their Planned Unit Development (PUD). As this is a deviation from the ordinance, inclusion of the desired signing standards within the PUD is the appropriate method with which to review the request. The request for temporary marketing signs includes up to two (2) large signs up to 12-feet tall and 16-feet wide (192 SF) with the desired locations at the north and south ends of the landscape berm. They are also requesting up to four (4) smaller marketing signs up to 8-feet by 8-feet (64 SF), also located along the landscaped berm. In total, this could allow up to six (6) temporary marketing signs along the nearly 1-mile frontage with Highway 10. Due to the extended frontage along the highway, and along with the speed of traffic along the corridor, staff supports the requested amendment for temporary marketing signage. However, to minimize sign clutter, staff recommend a minimum of 500 feet between marketing signs. Additionally, all temporary marketing signs must meet the ordinance setback standards and must be removed within 60 days of the city's acceptance of the public improvements in the final phase of the development. When the final phase is reviewed by the City Council, staff will also include a condition to retain an additional escrow related to their removal. The developer has also asked to add PUD standards related to a permanent development sign. The requested sign is 36-feet long and 4-feet tall (144 SF) and is limited only to text with the development name "Oakwater Page 45 of 114 Ridge." The proposed sign also includes significant landscaping to compliment the entrance to the development. Financial Impact None. Mission/Policy/Goal Support the growth and development of the community. Attachments 1. Location Map 2. Ordinance Amendment Text 3. Entry-Berm Landscape Exhibit 4. Presentation Page 46 of 114 � 't ' r �.... • � , ...,,. • J_ .. .. � "'"' Project Location Map Capsto11e PUD Amendment Case No: OA 26-05 Page 47 of 114 Sec. 30-1604. Oakwater Ridge. (a) Legal description. The following described property located within the City of Elk River, Sherburne County, Minnesota is hereby zoned PUD, Planned Unit Development: That part of the following described parcels: Those parts of the West Half of the Northeast Quarter and the Southeast Quarter of the Northeast Quarter, all in Section 14, Township 32, Range 26, Sherburne County, Minnesota, which lies Southwesterly of the Southwesterly Right of Way line of U.S. Highway No. 10 and Northwesterly of the Northwesterly Right of Way line of Kelley Farm Road N.W., both Right of Way lines per the recorded plat of Minnesota Department of Transportation Monumentation Plat 71-M2 AND Government Lot 1, Section 11, Township 32, Range 26, Sherburne County, Minnesota AND Southeast Quarter of Southwest Quarter, Section 11, Township 32, Range 26, Sherburne County, Minnesota AND Government Lot 3; Government Lot 4; and that part of the Northeast Quarter of the Northwest Quarter, all in Section 14, Township 32, Range 26, Sherburne County, Minnesota, which lies Southwesterly of the Southwesterly Right of Way line of U.S. Highway No. 10 per the recorded plat of Minnesota Department of Transportation Monumentation Plat 71-M2 Which lies southwesterly and southerly of the following described line and its southeasterly and northwesterly extensions: Commencing at the East Quarter corner of Section 14, Township 32, Range 26; thence North 89 degrees 22 minutes 02 seconds West, assumed bearing, along the South line of the Northeast Quarter of said Section 14, a distance of 386.11 feet; thence North 22 degrees 56 minutes 43 seconds East, 210.03 feet to the point of beginning of said line to be described; thence North 48 degrees 37 minutes 16 seconds West, 1115.25 feet; thence northwesterly 684.15 feet along a tangential curve, concave to the Northeast, having a radius of 22972.93 feet and a central angle of 01 degree 42 minutes 23 seconds; thence North 46 degrees 54 minutes 53 seconds West, tangent to the last described curve, 878.66 feet; thence northwesterly 1018.51 feet, along a tangential curve, concave to the Northeast, having a radius of 7846.18 feet and a central angle of 07 degrees 26 minutes 15 seconds; thence North 39 degrees 28 minutes 38 seconds West, tangent to the last described curve, 317.40 feet; thence northwesterly 157.33 feet along a tangential curve, concave to the Southwest, having a radius of 267.00 feet and a central angle of 33 degrees 45 minutes 42 seconds; thence North 73 degrees 14 minutes 20 seconds West, tangent to the last described curve, 59.05 feet; thence Page 48 of 114 northwesterly 196.22 feet, along a tangential curve, concave to the Northeast, having a radius of 333.00 feet and a central angle of 33 degrees 45 minutes 42 seconds; thence North 39 degrees 28 minutes 38 seconds West, tangent to the last described curve, 305.98 feet; thence North 89 degrees 53 minutes 25 seconds West, 312.85 feet; thence North 58 degrees 18 minutes 20 seconds West, 92.34 feet; thence North 25 degrees 31 minutes 23 seconds West, 236.52 feet; thence North 89 degrees 55 minutes 44 seconds West, 89.41 feet; thence westerly 34.42 feet, along a tangential curve, concave to the South, having a radius of 303.00 feet and a central angle of 06 degrees 30 minutes 34 seconds; thence North 33 degrees 53 minutes 06 seconds West, not tangent to the last described curve, 372.53 feet to the North line of said Government Lot 1 and said line there terminating. (b) PUD development standards. The property shall be subject to the following standards. (1) Uses. a. Permitted uses. 1. Residential, single family. 2. Residential facilities (one to six persons). 3. State licensed residential facilities or a housing with services establishment registered under chapter 144D serving six or fewer persons, a licensed day care facility serving 12 or fewer persons, and a group family day care facility licensed under Minnesota Rules, parts 9502.0315 to 9502.0445 to serve 14 or fewer children shall be considered a permitted single family residential use of property for the purposes of zoning, except that a residential facility whose primary purpose is to treat juveniles who have violated criminal statutes relating to sex offenses or have been adjudicated delinquent on the basis of conduct in violation of criminal statutes relating to sex offenses shall not be considered a permitted use. b. Accessory uses. 1. Accessory dwelling units. 2. Residential occupations. 3. Structures, accessory. 4. Towers (less than 60 feet in height). 5. Signs (as permitted in section 30-851 et seq.). c. Conditional uses. 1. Kennels, private. (2) Lot size. Page 49 of 114 a. The PUD permits lot sizes as follows: Lot Type Unit Count Minimum Lot Width Minimum Lot Depth Typical Lot Area Min. 50' Single- Family Lots 170 50'—0" 130'—0" 6,760 SF Min. 65' Single- family Lots 293 65'—0" 130'—0" 7,800 SF Min. 75' Single- family Lots 48 75'—0" 130'—0" 10,000 SF Min. 100' Single-Family Lots 20 100'—0" 130'—0" 20,000 SF _______________ (3) Setbacks. a. Single family lots. 1. Primary structures. 50' and 65' Wide Lots Front Setback 25'—0" Side Setback 7'—6" Rear Setback 30'—0" Corner Front Setback 25'—0" 75' Wide Lots Front Setback 30'—0" Side Setback 7'—6" Rear Setback 30'—0" Corner Front Setback 30'—0" 100' Wide Lots Front Setback 30'—0" Side Setback 10'—0" Rear Setback 30'—0" Corner Front Setback 30'—0" 2. Accessory structures. Front Setback Same as Principal Structure Side Setback 5'—0" Page 50 of 114 Rear Setback 5'—0" Corner Front Setback Same as Principal Structure 3. All properties are limited to two detached structures. 4. Total garage space (attached and detached) shall be limited to 1,200 SF. 5. All other setbacks shall be consistent with the relevant section of the city code. (4) Additional design standards: a. Driveways width is established in the table below, and is measured at the curb line. 50' Lot Width 65' Lot Width 75' Lot Width 100' Lot Width Driveway Width 16 feet 20 feet 30 feet 30 feet b. Driveways must be setback 5'—0" from side property lines. c. Attached garages must be at least 440 square feet in size (20 x 22). d. Internal monotony code. 1. Homes shall not repeat the same front elevation and primary exterior color combination within the block described below. i. A block for the purposes of applying the monotony code includes the two adjacent homes on the same side of the street, and the three closest homes across the street. e. Landscape requirements. 1. Lots 65-feet and wider must include two trees in front yard. One tree must be an overstory tree, and the second can be ornamental, evergreen or overstory. 2. The 50-foot parcels must plant at least one overstory tree in the front yard. f. Properties within the Wild and Scenic River district must comply with standards described in city code, beginning with section 30-2071. 1. Riparian lots will be permitted a dock in accordance with state regulations. Page 51 of 114 g. Signage 1. Temporary Marketing Signs i. Large Format Signs: Up to 2 temporary marketing signs, each not to exceed 12 feet in height by 16 feet in width (192 square feet per face). ii. Secondary Signs: Up to 4 temporary marketing signs, each not to exceed 8 feet in height by 8 feet in width (64 square feet per face). iii. All temporary marketing signage shall be removed within 60 days of the City’s final acceptance of the public improvements for the final phase of the Oakwater Ridge development. iv. Temporary signs allowed under this ordinance shall be no closer than 500-feet between signs. 2. Entrance Monument Sign i. One (1) permanent entrance monument sign is permitted at the primary project entrance. The shall be no larger than 36- feet long by 4-feet tall and only include text with the development name “Oakwater Ridge.” ii. Construction shall consist of LP Smart Side, Stone, Masonry, or decorative metal to ensure long-term durability and aesthetic consistency with the PUD theme. (5) Any standard not specifically described within this section shall remain consistent with the City of Elk River Code of Ordinances. (c) Development plans. The PUD shall be developed in accordance with the following plans, as amended from time to time, on file at city hall. Plan A—Elk River Specht Farm Master PUD Exhibits updated in accordance with City Council action on April 7, 2025. (Ord. No. 25-05, § 1, 4-7-2025) Page 52 of 114 SYMBOLCODEQTYBOTANICAL NAME COMMON NAME SIZE CONTAINERTREESSM23Acer saccharum 'Bailsta'Fall Fiesta Sugar Maple2" Cal. B&BFM10Acer x freemanii `Sienna`Sienna Glen Maple2" Cal. B&BRB 21Betula nigraClump Form, 2" Cal EquivalentRiver Birch Multi-Trunk 8` Ht.B&BHB18Celtis occidentalisCommon Hackberry2" Cal. B&BWO32Quercus bicolorSwamp White Oak2" Cal. B&BEL20Ulmus japonica x wilsoniana 'Morton'Accolade Elm2" Cal.B&B124SUBTOTAL:CONIFEROUS TREESBF 47Abies balsamea Balsam Fir6` Ht.B&BBH64Picea glauca densataBlack Hills Spruce6` Ht.B&BAP56Pinus nigraAustria Pine6` Ht.B&B167SUBTOTAL:ORNAMENTAL TREESSB5Amelanchier x grandiflora `Autumn Brilliance`Clump Form, 1.5" Cal EquivalentAutumn Brilliance Serviceberry7` Ht.B&BCA6Malus x `Prairifire`Prairifire Crabapple1.5" Cal.B&B11SUBTOTAL:GROUND COVERSSOD50,157 sfTurf Sod BluegrassKentucky BluegrasssodTIII759,702 sfType III - Native Seed MixRefer to notes for acceptable seeding methodsSeeding Rate 35 lb/acMnDOT Southern Shortgrass Roadside (SSR)seed809,859 sfSUBTOTAL:PLANT SCHEDULEELK RIVER 648-1 LAND, LLC14015 Sunfish Lake Blvd. NW, Suite 400Ramsey, MN 55303off:\jobs\9541 - 9560\9556 - specht farm - elk river\cad c3d\landscape\exhibits\9556_landscape_entry-berm.dwgSave Date:03/19/26Revisions:1. 03/26/26 - Seeding Specification Revised to Hydromulch Application#95563Print Name:Signature:Date: License #:Drawn:Designed:Date:I hereby certify that this plan, specificationor report was prepared by me or under mydirect supervision and that I am a dulyLicensed Landscape Architect underthe laws of the State of Minnesota03/18/26RJR03/18/26Ryan J. Ruttger, RLA56346RJROAKWATER RIDGE1ST ADDITIONElk River, MNENTRY / BERMLANDSCAPE EXHIBITL1Know what'sROakwater RidgeEntry / Berm Landscape ExhibitElk River, Minnesota–EXISTING GRADEGUY WIRE WITH WEBBINGFLAGGING- ONE PER WIREPLANTING SOIL MIXTURE (SEE SPEC.)MINIMUM 1/2 WIDTH OF ROOT BALL4"-6" SHREDDED BARKMULCHUNDISTURBED OR STABILIZEDSUBSOILNOTE: GUY ASSEMBLY OPTIONAL BUTCONTRACTOR ASSUMES FULLRESPONSIBILITY FOR MAINTAINING TREEIN A PLUMB POSITION FOR THEDURATION OF THE GUARANTEE PERIODGUY ASSEMBLY- 16"POLYPROPYLENE OR POLYETHYLENE(40 MIL) 1-1/2" WIDE STRAP (TYP)DOUBLE STRAND 10 GA. WIRE, 2-7"ROLLED STEEL POSTS (MnDOT 3401)@ 180° O.C. (SEE STAKING DIAGRAM)COORDINATESTAKING TO INSUREUNIFORMORIENTATION OF GUYLINES AND STAKES2. TRIM OUT DEAD WOOD AND WEAK AND/ORDEFORMED TWIGS. DO NOT CUT A LEADER. DONOT PAINT CUTS.4. PLACE PLANT IN PLANTING HOLE WITHBURLAP AND WIRE BASKET, (IF USED), INTACT.BACKFILL WITHIN APPROXIMATELY 12" OF THETOP OF ROOTBALL, WATER PLANT. REMOVETOP 1/3OF THE BASKET OR THE TOP TWOHORIZONTAL RINGS, WHICHEVER IS GREATER.REMOVE ALL BURLAP AND NAILS FROM TOP1/3 OF THE BALL. REMOVE ALL TWINE.3. SET PLANT ON UNDISTURBED NATIVE SOILOR THOROUGHLY COMPACTED BACKFILL SOIL.INSTALL PLANT SO THE ROOT FLARE IS AT ORUP TO 2" ABOVE THE FINISHED GRADE.6. WATER TO SETTLE PLANTS AND FILLVOIDS.5. PLUMB AND BACKFILL WITHBACKFILL SOIL.7. WATER WITHIN TWO HOURS OFINSTALLATION. WATERING MUST BESUFFICIENT TO THOROUGHLY SATURATEROOT BALL AND PLANTING HOLE.8. PLACE MULCH WITHIN 48 HOURS OFTHE SECOND WATERING UNLESS SOILMOISTURE IS EXCESSIVE.1. SCARIFY BOTTOM AND SIDES OF HOLEPRIOR TO PLANTINGPLANTREE WRAPBACKFILL MIXPAINTED FLUORESCENT ORANGEWHITE FLAGGING (TYP.)DOUBLE STRAND 12 GAUGE WIRE8" 2-PLY NYLON STRAPS8' STEEL TEE POST-4 INCHES HARDWOOD MULCHFROM TOP 1/3 OF THE BALLREMOVE BURLAP & ROPEUNDISTURBED SUBSOIL4 INCH DEEP SAUCERNOTE: SEE PLANTING NOTES FOR THE TYPE OF MULCH MATERIAL TO USE.12"3 REQUIRED AT 120SHEET 1/L2SHEET 2/L2SHEET 1/L3Page 53 of 114 3RB7BH5EL7AP5WO7BH3SM7AP3EL7BF3HB3AP5RB5WO9BH5BF5HB3AP5WO3AP5SM5BH3EL7AP5FM5SB3BF5BH5WO3AP3CA7SM5BF3EL5AP3RB7BH5HB7BFENTRY / BERMLANDSCAPE EXHIBITL2SHEET 2/L2SHEET 1/L2SHEET 1/L3ELK RIVER 648-1 LAND, LLC14015 Sunfish Lake Blvd. NW, Suite 400Ramsey, MN 55303off:\jobs\9541 - 9560\9556 - specht farm - elk river\cad c3d\landscape\exhibits\9556_landscape_entry-berm.dwgSave Date:03/19/26Revisions:1. 03/26/26 - Seeding Specification Revised to Hydromulch Application#95563Print Name:Signature:Date: License #:Drawn:Designed:Date:I hereby certify that this plan, specificationor report was prepared by me or under mydirect supervision and that I am a dulyLicensed Landscape Architect underthe laws of the State of Minnesota03/18/26RJR03/18/26Ryan J. Ruttger, RLA56346RJROAKWATER RIDGE1ST ADDITIONElk River, MNPage 54 of 114 7BH5FM3BF7WO3AP5BH3CA3BF5SM3EL3AP5AP5RB7BH5HB7BF3EL5BH3SM7AP5WO5RB7BFENTRY / BERMLANDSCAPE EXHIBITL3SHEET 2/L2ELK RIVER 648-1 LAND, LLC14015 Sunfish Lake Blvd. NW, Suite 400Ramsey, MN 55303off:\jobs\9541 - 9560\9556 - specht farm - elk river\cad c3d\landscape\exhibits\9556_landscape_entry-berm.dwgSave Date:03/19/26Revisions:1. 03/26/26 - Seeding Specification Revised to Hydromulch Application#95563Print Name:Signature:Date: License #:Drawn:Designed:Date:I hereby certify that this plan, specificationor report was prepared by me or under mydirect supervision and that I am a dulyLicensed Landscape Architect underthe laws of the State of Minnesota03/18/26RJR03/18/26Ryan J. Ruttger, RLA56346RJROAKWATER RIDGE1ST ADDITIONElk River, MNPage 55 of 114 Ordinance Amendment Capstone Homes for Oakwater Ridge Page 56 of 114 Page 57 of 114 Background §Capstone received approval of the Oakwater Ridge PUD earlier this year. §First phase is under construction – including berm §Desire to begin marketing the development §Asking for larger marketing signs along Highway §Also seeking approval of an entrance monument §As the PUD is silent on these signs and the topic was not previously addressed, signage reverts to ordinance. Page 58 of 114 OA Request §Marketing signs (ordinance is 64 SF) §2 large signs up to 192 SF – one at each end §4 smaller signs up to 64 SF – along the highway §All marketing signs need to be removed when public improvements with the last phase are accepted §Entrance monument sign (ordinance is 16 SF/8 feet) §One sign at 36 feet long by 4 feet tall (144 SF). §Sign included with landscaping along the berm. Page 59 of 114 Page 60 of 114 Page 61 of 114 Page 62 of 114 Staff Review §The project has nearly 1-mile of frontage along the highway. §With the high speed and length of frontage, additional signage (size and quantity) is appropriate. §Long term impacts are mitigated by requiring their removal upon acceptance of the final residential phase. §Flags and festoons are not permitted. §Entrance monument fits the scale of the project. Page 63 of 114 Action Requested §Recommend, by motion, approval of the ordinance amendment as outlined in the memo Page 64 of 114 City Council Meeting §This item will go to the June 15, 2026, City Council meeting. Page 65 of 114 The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity Request for Action To Planning Commission Item Number 4.4 Meeting Date May 26, 2026 Prepared By Chris Leeseberg, Senior Planner Item Description Ordinance Amendment: Business Park Zoning, Onyx Strategic Partners Reviewed by Zack Carlton Action Requested Recommend, by motion, approval of the ordinance amendment allowing Outpatient Medical Facilities in the Business Park (BP) zoning district. Recommend, by motion, denial of the ordinance amendment allowing Physical Recreation or Training and removing limitations on Warehouse Space in the Business Park (BP) zoning district. Background/Discussion The applicant is seeking an ordinance amendment to allow outpatient medical facilities, physical recreation or training uses, and remove limitations on warehouse space in Business Park zoning district. Over the past 15+ years, the BP ordinance has been amended several times in an effort to respond to evolving commercial market needs. In some cases, those changes were later reconsidered due to their impact on the availability and function of industrial land, leading the city to return to the original intent for the district. Physical recreation uses are often discouraged in industrial zoning districts because they can create land use conflicts, safety concerns, and operational limitations for industrial businesses. They also do not generate full- time employment in the way that other industrial uses generally do. Recreation users, particularly children and families, may be exposed to increased risks from vehicle conflicts, noise, fumes, or industrial processes. Industrial districts are typically designed for commercial vehicles rather than pedestrian-oriented activity. Recreation uses can introduce increased pedestrian traffic, parking demand, and peak visitation periods that interfere with industrial circulation patterns. Page 66 of 114 The Business Park zoning is also intended to preserve areas for manufacturing, processing, and similar employment-generating activities while limiting warehousing. Recreational uses are generally considered more compatible with commercial, mixed-use, and institutional areas. While staff are supportive of the request to allow outpatient medical facilities in the BP district, staff do not support allowing physical recreation type uses or removing the limit on warehousing space as it would impact the city’s limited industrial properties. Financial Impact None. Mission/Policy/Goal Appropriately govern in an ever-changing environment. Attachments 1. Narrative 2. Ordinance 26-__ 3. Presentation Page 67 of 114 Thursday April 23, 2026 City of Elk River Minnesota Planning Department 13065 Orono Parkway Elk River, MN 55330 RE: Business Park Zoning Amendment Request City of Elk River Planning and Zoning Department, As one of the building owners and the partner developer within the ownership group, I am officially submitting this letter of request expanding permitted uses within the “business park” designation for the City of Elk River. This request originated after we purchased the property at 18322 Joplin Street NW in Elk River, MN and found several high quality tenants / businesses that wanted to move into our current vacancy that were denied by the City based on restrictions and contradictions in their business park code currently. Typically, we have approached issues like this with a conditional use permit, for a specific space, or for the building in its entirety, where the City and planning commission review use and the condition/functionality of the space. But, after meeting with City staff, we were directed to submit for an overall amendment to the business park zoning, as staff’s preferred route for considering this issue. During our meeting with City staff, it was requested that we submit this letter noting the other locations in the Twin Cities metro where we own similar properties and proposed preferred language, noting approved uses and the entity holding that code currently. Thus, we have prepared this submission for consideration. As a partner group, we own commercial real estate throughout the Twin Cities. Over time, we developed a specialization in small bay industrial real estate properties and have focused significantly on that product type in the last few years. We currently own the following small bay industrial properties in the Twin Cities metro: 1. 701 1st Street, Farmington MN 55042 2. 1200 Mendelssohn Avenue N, Golden Valley MN 55427 3. 13-17 77th Avenue NE, Fridley MN 55432 4. 15861 Lincoln St NE, Ham Lake MN 55304 5. 15903 Lincoln St NE, Ham Lake MN 55304 6. 10650 County Road 81, Maple Grove MN 55369 7. 10731 - 10803 93rd Avenue North, Maple Grove MN 55369 8. 9274 Wellington Lane, Maple Grove MN 55369 9. 6301 Welcome Avenue, Brooklyn Park, MN 55429 10. 6317 Welcome Avenue, Brooklyn Park, MN 55429 The tenant mix is similar at all of our small bay industrial properties and is primarily comprised of: 1. Small residential and commercial contractors Page 68 of 114 Zoning Amendment Application April 23, 2026 2. Insurance, real estate and other professional service-based companies 3. Cleaning companies 4. Lab and science-based technical service providers 5. Light auto users (detailing, tinting, mechanical install) 6. Transportation, shipping and logistics 7. Heavy auto users (auto body) The majority of our buildings have some form of Industrial designation. Similar buildings to the one we purchased in Elk River exist throughout the Twin Cities in business park designations with specific language we are submitting for review. Below are two examples we are submitting for consideration as building code codified by other local jurisdictions. Our aim would be to establish appropriate zoning language or an ideal process that allows for greater flexibility from a building ownership standpoint, getting the most ideal users in the building, while also maintaining appropriate review and approval from a City governance standpoint. We believe the following uses would be ideal for our building and other business park designated buildings in the City, as noted directly in an amended code or subject to review / approval through a CUP process: 1. CrossFit/Gym 2. Martial Arts 3. Chiropractor Clinic/medical (with CUP) 4. Athletic Training (baseball/softball) 5. Landscaping with outdoor storage capacity in the back lot 6. General office/warehouse (construction/trades) Through this application, we request the following City codes be considered for adoption by the City of Elk River: The City of Eagan, Minnesota’s business park district code is relatively restrictive, requiring many uses to go through a conditional use permit process. Their code is written as: “BP Business Park District. Purpose. The Business Park BP District is intended to accommodate development of low intensity office, light industrial and supporting commercial service uses that may be suitable in relative close proximity to non-industrial development. More intensive industrial uses which require either outdoor storage or high truck traffic or both are excluded. The performance standards for this district are intended to establish and maintain high quality site planning, architecture, signage and landscape design to create an attractive and unified development character. Permitted uses. Within any BP district no structure or land shall be used except for one or more of the following uses or uses deemed similar by the council: Adult establishments. Financial institutions and banks (without drive-through facilities). Freestanding satellite dishes, subject to the regulations thereof elsewhere in this chapter. Office and office buildings. Office/warehouses and office/showrooms. 2 Onyx Strategic Partners 330 2nd Ave S #370, Minneapolis, MN 55401 Page 69 of 114 Zoning Amendment Application April 23, 2026 Processing, packaging, cleaning, storage, assembling, servicing, repair or testing of materials, goods or products, when wholly contained within a building and which meet and maintain all applicable standards established by the state. Public utility tower mounted antennae, subject to the regulations thereof elsewhere in this chapter. Public utility uses. Research laboratories, when wholly contained within a building and which meet and maintain all applicable standards established by the state. Technical, vocational and business schools. Cannabis microbusiness (indoor cultivation only). Cannabis mezzobusiness (indoor cultivation only). Cannabis cultivator (indoor only). Cannabis manufacturer. Cannabis wholesaler. Cannabis testing facility. Cannabis event organizer (office use only). Medical cannabis combination business (indoor cultivation only). Conditional uses. Within any BP district no structure or land shall be used except for the following uses or uses deemed similar by the council and only by a conditional use permit: Coffee kiosks, subject to the regulations thereof elsewhere in this chapter. Daycare facilities. Elementary and middle schools. Financial institutions and banks with drive-through facilities. Health care facilities. Health and fitness clubs. Hotels and motels. Restaurants—Full service and casual and any outdoor dining area in conjunction therewith, subject to the regulations thereof elsewhere in this chapter. Retail sales of any product, goods or material produced at or directly related to the principle use on site, provided the following conditions are met: The retail sales are subordinate to the principle use. The gross floor area used for the retail sales is more than 15 percent but not more than 30 percent of the total gross floor area of the principle building if a single user/occupant or of the principle user's occupied space if within a multiple-user structure. The retail sales are owned and operated solely by the principle user/occupant of the subject site. The site can accommodate the minimum parking requirement for both the retail and principle use components as set forth elsewhere in this chapter. Permitted accessory uses. Coffee shops and cafeterias located within the principal structure. Garages or similar structures used to store vehicles and equipment. Parking and loading as regulated herein. Retail sales of any service or any product, goods or material produced at or directly related to the principle use on site, subject to the following: The retail sales are subordinate to the principle use. 3 Onyx Strategic Partners 330 2nd Ave S #370, Minneapolis, MN 55401 Page 70 of 114 Zoning Amendment Application April 23, 2026 The gross floor area used for the retail sales is not more than 15 percent of the total gross floor area or 3,000 square feet, whichever is less, of the principle building if a single user/occupant or of the principle user's occupied space if within a multiple-user structure. The retail sales are owned and operated solely by the principle user/occupant of the subject site. Temporary outdoor event, cultural/entertainment event, and outdoor food sales, subject to regulations thereof elsewhere in this chapter. This language and the CUP approach for anything that falls outside of those parameters, is acceptable to our group. This would allow for greater flexibility from an ownership standpoint while welcoming the City’s review as prospective tenants go through the CUP process, without amending and codifying the business park zoning with every use that could be a great fit for the building and the community. As a second example, we would like to submit the City of Blaine’s I1, light industrial, language for consideration. The City of Blaine has seen significant private investment in development in the last decade and has evolved their code to address any concerns that have arisen from the community regarding these buildings and their tenants. Their code is written as follows: Sec. 121-20. - Permitted uses. The following are permitted uses in the Light Industrial (I-1) District: (1) Manufacturing uses: manufacturing, compounding, processing, packaging, storage, treatment, or assembly of products and materials within a structure, except for rendering/slaughtering/refining facilities, cannabis cultivation and cannabis manufacturing. (2) Warehousing. (3) Wholesale businesses. (4) Business and professional offices, not including medical. (5) Engraving shops. (6) Machine shops. (7) Printing and publishing. (8) Repair services, except for businesses related to passenger vehicles and trucks. (9) Service uses of blue-printing, duplicating, mailing, and graphic arts. (10) Research and design laboratories. 4 Onyx Strategic Partners 330 2nd Ave S #370, Minneapolis, MN 55401 Page 71 of 114 Zoning Amendment Application April 23, 2026 (11) Data center. (12) Uses not explicitly enumerated in this section as permitted uses, but closely similar thereto as determined by the zoning administrator, provided these uses are not explicitly mentioned as permitted or conditional uses elsewhere in the ordinance. (Code 2004, pt. 3, § 31.02; Ord. No. 91-1264, 9-19-1991; Ord. No. 20-2447, 7-20-2020; Ord. No. 22-2514, 12-19-2022; Ord. No. 25-2572, § 31.02, 1-22-2025) Sec. 121-21. - Accessory uses. The following accessory uses are allowed in the Light Industrial (I-1) District: (1) Dwelling for watchman (not to exceed 500 square feet) and limited to one person. (2) Retail sales, incidental to manufacturing, of products manufactured, assembled, or warehoused on the premises, provided no more than ten percent of the building is used for retail space. (3) Coffee shops/cafeteria for employees. (4) Recreational facilities for employees. (5) Day care related to employee. (6) Cars, vans, pickup trucks, and utility trailers no longer than 15 feet in length parked outside and used by employees or visitors in the normal course of the business operation parked in the side and rear yard outside of the required parking stalls. (Code 2004, pt. 3, § 31.03; Ord. No. 20-2447, 7-20-2020; Ord. No. 22-2514, 12-19-2022) Sec. 121-22. - Conditional uses. The following are conditional uses in the Light Industrial (I-1) District: (1) Commercial nurseries/greenhouses. (2) Online purchase pick-up location. (3) Heliports. (4) Passenger vehicle service, major repair, including painting, body work and dismantling, 5 Onyx Strategic Partners 330 2nd Ave S #370, Minneapolis, MN 55401 Page 72 of 114 Zoning Amendment Application April 23, 2026 exclusive of auto reduction yards. Storage of vehicles shall be screened with 100 percent opaqueness. (5) Outdoor storage of passenger vehicles or vans, other than those specified in section 121-21(6), provided such storage shall be screened with 100 percent opaqueness. Such outdoor storage shall be related specifically to a permitted or approved conditional use. (6) Two or more buildings on same lot, provided such buildings relate to one permitted or conditional use. (7) Building over 50 feet from ground level. (8) Indoor vehicles sales showroom. (9) Zero lot line, with shared access or parking. (10) Principal adult uses, as defined and licensed under chapter 22, article II. (11) Indoor commercial dog kennel with or without dwelling for night watchperson. (12) Personal care, health care, recreation, fitness, or education related commercial services. Sites must be able to demonstrate adequate on-site parking. Uses must be destination based and not generate traffic volumes measurably above the range normally expected by the other allowed I-1 uses. With the exception noted in section 121-21(3), general retail sales is not permitted under this section. (13) Brewer taproom as associated with and on the same site as a licensed brewery. (14) Ground-mounted solar as an accessory use. We appreciate the opportunity to submit this code for consideration and engage in this process. We’re looking forward to further review and working through the details in the weeks to come. Highest Regards, Jessica Houlihan CEO, Onyx Strategic Partners 6 Onyx Strategic Partners 330 2nd Ave S #370, Minneapolis, MN 55401 Page 73 of 114 Strikethroughs to be removed Underlines to be added Ordinance 26 - ____ An Ordinance Amending Chapter, 30, Section 30-1295, BP business park district, of the City of Elk River, Minnesota, City Code The City Council of the City of Elk River does hereby ordain as follows: SECTION 1. That § 30-1295, BP business park district, of the City of Elk River Code of Ordinances shall be amended to read as follows: Section 30-1295. BP business park district. (a) Purpose. (1) The business park district is established to encourage a planned, integrated environment for certain industrial, office, and commercial uses, which are compatible with and complement each other as well as the surrounding land uses. The underlying land use designation within the district may vary and may be either light industrial or highway business. Development within the business park district will correspond with the land use designation. Industrial and office uses are allowed where the land use designation is light industrial, and commercial uses are allowed where the land use designation is highway business. (2) It is the intent of this section that development reflect common themes using compatible architectural design and consistency in signage, landscaping, and lighting. It is also the intent to encourage businesses, which generate a high number of jobs per square foot rather than predominantly warehouse type uses. (b) Permitted uses. Permitted uses in the BP district are as follows: (1) Business offices. (2) Mail order operations. (3) Manufacturing, light. (3)(4) Medical facilities, outpatient. (4)(5) Research and development facilities. (5)(6) Sherburne County Fair. (6)(7) Office/showroom spaces. (7)(8) Warehouse spaces (not exceeding 50 percent of the entire building). SECTION 2. That this ordinance shall take effect upon adoption and be published as provided by law. Passed and adopted by the City Council of the City of Elk River this 15th day of June 2026. ______________________________ John J. Dietz, Mayor ATTEST: _______________________________ Justin Dunford, City Clerk Page 74 of 114 Ordinance Amendment Onyx Strategic Partners Page 75 of 114 Background §Requesting the allowance of the following uses in BP: §Health care facility, outpatient §Same as the next item (Lift PT) §Physical recreation or training and §Removing limitations on warehouse space Page 76 of 114 Background §Over the past 15+ years, the BP ordinance has been amended several times §In an effort to respond to evolving commercial market needs §In some cases, those changes were later reconsidered due to their impact on the availability and function of industrial land §Leading the city to return to the original intent for the district Page 77 of 114 Background §Physical recreation uses often discouraged in industrial §Create land use conflicts §Safety concerns §Operational limitations for industrial businesses §Do not generate full-time employment in the way that other industrial uses generally do Page 78 of 114 Background §Recreation users (children/families) may be exposed to increased risks from vehicle conflicts, noise, fumes, or industrial processes Page 79 of 114 Background §Industrial districts are designed for commercial vehicles rather than pedestrian-oriented activity §Recreation uses can introduce increased pedestrian traffic, parking demand, and peak visitation periods that interfere with industrial circulation patterns Page 80 of 114 Background §BP zoning is intended to preserve areas for manufacturing, processing, and similar employment-generating activities while limiting warehousing §Recreational uses are generally considered more compatible with commercial, mixed-use, and institutional areas Page 81 of 114 Background §Staff are supportive of the request to allow outpatient medical facilities in the BP district §It supports health care offices, some of which are currently operating in the Business Park district §The PC were supportive of the amendment at their work session Page 82 of 114 Background §Staff do not support allowing physical recreation type uses or removing the limit on warehousing space as it would impact the city’s limited industrial properties Page 83 of 114 Action Requested §Recommend, by motion, approval of the ordinance amendment allowing Outpatient Medical Facilities in the BP zoning district §Recommend, by motion, denial of the ordinance amendment allowing Physical Recreation or Training and removing limitations on Warehouse Space in the BP zoning district Page 84 of 114 City Council Meeting §If acted on, this item will go to the June 15, 2026, City Council meeting Page 85 of 114 The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity Request for Action To Planning Commission Item Number 4.5 Meeting Date May 26, 2026 Prepared By Chris Leeseberg, Senior Planner Item Description Ordinance Amendment: Business Park Zone, Lift PT Reviewed by Zack Carlton Action Requested Recommend, by motion, approval of the ordinance amendment allowing Outpatient Medical Facilities in the Business Park (BP) zoning district. Background/Discussion The applicant, a physical therapy and performance training practice (Lift PT), is seeking an ordinance amendment to the Business Park (BP) zoning district to allow Outpatient Medical Facilities. The ordinance currently does not permit traditional medical or rehabilitation facilities, but similar facilities already exist within the district and could fit into smaller industrial buildings within the city. Over the past 15+ years, the BP ordinance has been amended several times in an effort to respond to evolving commercial market needs. In some cases, those changes were later reconsidered, as they impacted on the availability and function of industrial land, leading the city to return to its original intent for the district. While they are proposing to utilize space at 11110 Industrial Cir, directly east of Spectrum High School, any amendment to the ordinance will affect all properties located in BP zoning districts. Staff are supportive of the request as it supports health care offices, some of which are currently operating in the Business Park district and the Planning Commission, at its April 28, 2026, work session, were supportive of the amendment. Financial Impact None Mission/Policy/Goal Appropriately govern in an ever-changing environment. Attachments Page 86 of 114 1. Ordinance 26-__ 2. Presentation Page 87 of 114 Strikethroughs to be removed Underlines to be added Ordinance 26 - ____ An Ordinance Amending Chapter, 30, Section 30-1295, BP business park district, of the City of Elk River, Minnesota, City Code The City Council of the City of Elk River does hereby ordain as follows: SECTION 1. That § 30-1295, BP business park district, of the City of Elk River Code of Ordinances shall be amended to read as follows: Section 30-1295. BP business park district. (a) Purpose. (1) The business park district is established to encourage a planned, integrated environment for certain industrial, office, and commercial uses, which are compatible with and complement each other as well as the surrounding land uses. The underlying land use designation within the district may vary and may be either light industrial or highway business. Development within the business park district will correspond with the land use designation. Industrial and office uses are allowed where the land use designation is light industrial, and commercial uses are allowed where the land use designation is highway business. (2) It is the intent of this section that development reflect common themes using compatible architectural design and consistency in signage, landscaping, and lighting. It is also the intent to encourage businesses, which generate a high number of jobs per square foot rather than predominantly warehouse type uses. (b) Permitted uses. Permitted uses in the BP district are as follows: (1) Business offices. (2) Mail order operations. (3) Manufacturing, light. (3)(4) Medical facilities, outpatient. (4)(5) Research and development facilities. (5)(6) Sherburne County Fair. (6)(7) Office/showroom spaces. (7)(8) Warehouse spaces (not exceeding 50 percent of the entire building). SECTION 2. That this ordinance shall take effect upon adoption and be published as provided by law. Passed and adopted by the City Council of the City of Elk River this 15th day of June 2026. ______________________________ John J. Dietz, Mayor ATTEST: _______________________________ Justin Dunford, City Clerk Page 88 of 114 Ordinance Amendment Lift PT Page 89 of 114 Background §Requesting the allowance of the following uses in BP: §Health care facility, outpatient Page 90 of 114 Background §We just discussed the BP ordinance history with the last item Page 91 of 114 Background §Staff are supportive of the request to allow outpatient medical facilities in the BP district §It supports health care offices, some of which are currently operating in the Business Park district §The PC were supportive of the amendment at their work session Page 92 of 114 Action Requested §Recommend, by motion, approval of the ordinance amendment allowing Outpatient Medical Facilities in the Business Park (BP) zoning district. Page 93 of 114 City Council Meeting §If acted on, this item will go to the June 15, 2026, City Council meeting Page 94 of 114 The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity Request for Action To Planning Commission Item Number 5.1 Meeting Date May 26, 2026 Prepared By Zack Carlton, Community Development Director Item Description Resolution 26-01: Approving the Sale of Public Property to O'Brien Holdings, LLC Reviewed by Brent O'Neil Chris Leeseberg Action Requested Approve, by motion, a resolution finding the sale of a portion of Lot 1, Block 1, Northstar Business Park to be consistent with the Comprehensive Plan. Background/Discussion The city developed the North Star Business Park in 2005 to support industrial growth in the community. Many of these lots have been sold and developed over the years, but the city has continued to market the last available parcel in the development. The city recently agreed to sell a portion of this remaining lot to an adjacent industrial user to support expansion of their current industrial operation. The proposed sale is expected to close later this year. However, in advance of the sale, the Planning Commission must review the sale of public property for consistency with the city's Comprehensive Plan. The proposed use of a light manufacturing facility is an allowed use in the FAST (C) zoning district and the area is guided for Business Park uses in the Comprehensive Plan. The adopted plans support the proposed use of the property and staff recommend adopting the attached resolution, finding the proposed use of the property to be consistent with the Comprehensive Plan. Financial Impact None. Mission/Policy/Goal Support the growth and development of the community. Attachments 1. Resolution 26-01 Page 95 of 114 City of Elk River Planning Commission Resolution 26-01 A Resolution of the Planning Commission of the City of Elk River concerning the conveyance of property located within the district to O’Brien Holdings, LLC or another affiliate of Crystal Distribution, Inc. WHEREAS, the City of Elk River, Minnesota (the “City”) and the Economic Development Authority for the City of Elk River, Minnesota (the “Authority”) have previously established Municipal Development District No. 1 (the “Project”) within the City, pursuant to Minnesota Statutes, Sections 469.090 through 469.1082, as amended; and WHEREAS, the Authority owns certain parcels located in the City and legally described in Exhibit A attached hereto (the “Development Property”) and is prepared to convey the Authority Parcels to O’Brien Holdings, LLC (the “Developer”); and WHEREAS, the Developer proposes to acquire a portion of the Development Property from the Authority for purposes of constructing an approximately 40,000 square foot expansion to the Developer’s manufacturing building on the Development Property and other property owned by the Developer; and WHEREAS, Minnesota Statutes, Section 462.356, subdivision 2 requires that the Board of Commissioners of the Elk River Planning Commission (the “Planning Commission”) review the proposed acquisition or disposal of publicly owned real property within the City prior to its acquisition or disposal, to determine whether in the opinion of the Planning Commission, such acquisition or disposal is consistent with the comprehensive municipal plan; and WHEREAS, the Planning Commission has reviewed the proposed conveyance of the Development Property to the Developer, and has determined the proposed conveyance for the proposed development is consistent with the City’s comprehensive municipal plan; and WHEREAS, the Planning Commission’s review of the conveyance of the Development Property relates solely to compliance with Minnesota Statutes, Section 462.356; and NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Elk River Planning Commission that the proposed conveyance of the Development Property is consistent with the comprehensive plan for the City and conforms to general plans for development or redevelopment of the City as a whole. Passed and adopted this 26 day of May 2026. Page 96 of 114 Perry Beise, Chair ATTEST: Justin Dunford, City Clerk Page 97 of 114 EXHIBIT A LEGAL DESCRIPTION The property located in the City of Elk River, Sherburne County, Minnesota legally described as: That part of Lot 1, Block 1, NORTHSTAR BUSINESS PARK, Sherburne County, Minnesota, lying southerly and easterly of the following described line: Commencing at the Northeasterly corner of said Lot 1; thence southeasterly on a curve along the Southwesterly right-of-way line of Twin Lakes Road an arc distance of 196.58 feet, said curve concave to the northeast, having a radius of 880.21 and a delta angle of 12 degrees 47 minutes 45 seconds, to the point of beginning of said described line; thence southwesterly to a point on the Westerly line of said Lot 1, 477.16 feet northwesterly of the Northwest corner of said Lot 2 and there terminating. Page 98 of 114 The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity Request for Action To Planning Commission Item Number 8.1 Meeting Date May 26, 2026 Prepared By Zack Carlton, Community Development Director Item Description Concept Review: Subdivision and Commercial Development along Highway 10 Reviewed by Chris Leeseberg Action Requested Discuss the conceptual subdivision to support commercial development near the intersection of 165th Ave and Highway 10. Background/Discussion The trust representing the owners of two unique lots on the east side of Highway 10 has submitted a concept plan for a subdivision. The lots in question have existing billboards that limit their development potential. City ordinance requires billboards to be removed when a parcel is dedicated to a new use or platted onto their own legal-conforming lot. However, the billboards on the subject site are subject to a permanent easement, making it very difficult for a landowner to remove them. In order to create a developable commercial lot, the landowner must plat each billboard on its own legal- conforming lot, leaving the buildable parcel behind the billboards lots and a right-of-way to provide access to each lot. This configuration creates a significant amount of unusable space due to the city's performance standards, and may not further the city's development goals in this location. The alternative solution could be the creation of a PUD that allows the billboards to remain in place and include them as an allowed accessory use on a parcel. The Planning Commission should review both design options and provide the applicant with non-binding feedback. Financial Impact None. Mission/Policy/Goal Meet changing needs - agile. Attachments 1. Location Map 2. Concept Plans 3. Presentation Page 99 of 114 Page 100 of 114 Page 101 of 114 Page 102 of 114 Page 103 of 114 Page 104 of 114 Page 105 of 114 Page 106 of 114 Concept Review Specht Trust Page 107 of 114 Page 108 of 114 Background §Platting concept to address ordinance requirements for billboards. §Plats create a single lot for each billboard, along with access, leaves a buildable parcel for commercial use. Page 109 of 114 Page 110 of 114 Page 111 of 114 Page 112 of 114 Action Requested §Provide the applicant with informal feedback on their conceptual project. Page 113 of 114 Page 114 of 114