3.0. SR 10-11-1993
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ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
TO: MAYOR & CITY COUNCIL
FROM =
PATRICK DWYER,. CHAIRr BUSINESS PARK
WILLIAM RUBIN, ECONOMIC DEVELOPMENT
TASK FORCE~J)
COORDINATO~yL
.DATE: OCTOBER 7, 1993
SUBJECT: STATUS REPORT - BUSINESS PARK TASK FORCE;
REVIEW OF FUNDING SOURCES
INTRODUCTION
On Monday,October 11, 1993, the Elk River City Council will
hear an update from Pat Dwyer,.. Chair, EDA Business Park Task
Force. Following the update, discussion will. then shift to
potential funding sources to accomplish land acquisition and
infrastructure improvements. ..
The City Council will then be asked to provid~
with~pecific direction on how to best
activities.
the Task
accomplish
Force
these
BACKGROUND
I. Task Force Created
Through action at i1;.sMay lOUl mee.ting, the Elk River EDA
created. a Task Force to research the concept of developing
additional Business Park/Industrial Park areas. Members
of the Task Force include: EDA President Jeff Gongoll,
EDA Vice-President Pat Dwyer,EDA Commissioner (and City
Councilmernber) John Dietz, Ed Cunningtqn, Tesc.om
corporation (representing the Elk .Ri,ver Area Chamber of
Commerce), and Dick Gongoll, Larry Toth, Cliff Lundberg,
and carol Mi.lls (all representing the EDA ReSearch and
Development committee). Staff representatives included:
Economic Development Coordinator Bill Rubin, and City
Planner Steve Ach. Subsequently, the Task Force was
expanded. to include Mayor Hank Duitsman. Pa.t Dwyer wa.s
named Chair of the Task Force.
Pursuan1;. to the action of May 10th, the Task.Force is
required to report back to the EDA within nine months.
II.
Initial Meeting
The Business park Task Force conducted its inaugural
meeting on Ju.rte 29, 1993. At that meeting, the following
. topics \vere explored and discussed =
-Overview of existing industrial sites
P.O. Box 490 · 13065 Orono Parkway- Elk River,MN 55330~1743 -(612) 441-7420 - Fax: (612) 44h7425
Equal Opportunity Housing and Equal Opportunity Employment .
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(location, ownership, occupancy, utility
improvements, etc.)
- Potential sites for future. industrial/business parks
- Development-ownership options
- Current property owner
-Private land developer
- Public-private joint venture. (EDA and developer)
- Public/Quasi-public joint venture (EDA and
Utility Company)
- PU}:)lic initiative (EDA or City)
- Overview of EDA Powers
- power to study economic development needs
- Power to acquire property
- Power to lease or sell property
- Power to develop and improve land
- Power to issue bonds
- Funding Sources
improvements)
( land
acquisition
and/or site
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- Contract.for Deed
Revenue or G.O. Bonds
Improvement Bonds (Chapter 429)
Tax Increment Funds .
US Economic Development ~dministration Grant
Rural Electrification Administration Grant/Loan
Utility Company Grant/Loan
III. Second Task Force Meeting
The second meeting of the Business Park Task Force was
held on July 27, 1993. EDA Task Force members reviewed
potential park locations, including a careful examination
of:
- Specific sites
- Ownership
- Zoning
- Estimated acreage
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A likely concept coming from the Task Force included the
development of two separate business park/industrial
areas. One area would likely continue to possess the
City's light industrial (I-I) zoning designation with
moderate development regulations for the typical metal
fabricator or tool and die shop. A second area would
likely be zoned B-P/Business Park, or, B-C/Business
Campus. Within this zone, certain industrial, office, and
limited commercial uses which are compatible with and
compliment each other would be encouraged. The B-P zone
would likely result in higher architectural standards
regarding elements such as landscaping or exterior
building finishes.
.
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IV.
The final item of discussion at the July 27th Task Force
meeting was another review of potcI).tial financing programs.
Third Task Force Meeting
The third Business Park Task Force meeting was held on
August 31st. Topics for discussion included:
- Funding sources for business park activities
- Land acquisition
- Infrastructure improvements
- City sources and/or city participation
- Strategies to acquire sites
- New B-P/Business Park zoning designation
(in the interest of time, discussion on this topic
was delayed until the next meeting)
V. Fourth.Task Force Meetinq
The Task Force met again on September 14th.
included:
Topics
- Continue discussion on fundingsourcesior Business
Park (land acquisition and infrastructure
improvements)
The list of potential funding sources was expanded
from a previous meeting to include:
Housing and Redevelopment Authority (HRA) Funds
EDA Funds
Revenue Bond
G.O. Bond
Portion of EDA1s annual levy
Excess levy (reverse referendum)
Improvement Bonds (Chapter 429)
City internal financing
Grants/lo.an
US EDA
Utility Company
Contract for Deed
Tax Increment Financing
TIF Districts No. 1 and No. 3
Creation of new TIFDistricts
- Strategies to acquire sites
- New B-PBusiness Park zoning designation
VI. Fifth Task Force Meetinq
The TaskForce had its fifth meeting on October 7th.
the meeting, Task Force members:
At
- reviewed and prioritized potential funding sources,
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- reviewed general sites within the community for
additional industrial/business parks, and
- reviewed a new B"""P/Business Park zoning designation.
The Task Force recommends the following ..items for
consideration by the City Council:
a. Funding Sources
i. Land Acquisition - Amend TIF Plans No. 1 and No.
3 to enable TIF funds from Districts No. 1 and
No.3 to be used in the acquisition of land for
additional industrial/business parks. Available
funds from Districts No. 1 and No.3' are
estimated at $43G,00 to $435,GOO.
Supplemental funds for the purchase of land may
include accessing a portion of the EDA1s fund
balance, and/or requesting a grant-loan from a
quasi-publiC entity such as a utility company.
Another'potential source of funds is through the
Housing and Redevelopment Authority (HRA);
however, the historical mission of an HRA is that
of addressing areas that are in need of
redevelopment.
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ii. Infrastructure Improvements - Two likely options
are available for the construction of roads and
the ,installation of utilities. 'they include the
sale of bonds via Minnesota Statutes, Cha~ter
429, or, an application to the U.S. Economic
Development Administration (USEDA). 'the EDA has
grant funds available for infrastructure costs in
support of industrial park projects. However,
these grant funds are finite, and at best, the
grant would cover 70 to 80 percent of the costs.
b. Potential Sites
The Task Force recommends that the City
consider two general areas as potential sites
industrial/business park. These areas are:
Council
for an
i. Several contiguous sites lying immediately west
of the fairgrounds and east of Waco Street; and
ii. An area east of
Burlington Northern
part of the City.
U.S. Highway 10
Railroad along
and the
the eastern
c.
Business Park Zone
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The Task Force recommends that the City Council
consider ,creating a newB-P business park zone. This
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zone would likely replace
Development (PUD) designation
property west of the fairgrounds.
light industrial (I~l) zoning
used within the development along
the community.
the Planned
currently
The City's
designation
the eastern
Unit
on the
current
would be
part of
The B-P district is intended to encourage a planned,
integrated environment for certain industrial,
office, and limited commercial uses which are
compatible with and compliment each other .as well as
the surrounding land uses. The end product results
in a "business campus" development. Architectural
standards are higher than those currently found in
the light industrial district.
The TaskForce recommends that the City Council refer
this matter to the Planning Commission for review and
comment.
ACTION REQUESTED
Following a presentation by Task Force Chair Patrick
Dwyer, the City Council will be asked to consider the use
of funds from TIF Districts No. 1 and No.. 3 for the
acquis~tion of one or more sites in tIk River for
additional industrial/business park developments.
Financing the infrastructure costs may be done by way of
Chapter 429 or by way of a grant to the USEDA.
In addition, the City Coulicil is asked to concur with the
Task Force recommendation of a business park development
in the western pa:rt of the community and a light
industrial development in the eastern part of the
community. Lastly, the City Council is asked to refer the
proposed business park zoning district to the Planning
Commission for review and study.
Enclosures:
Inventory of existing industrial sites
One page summary of funding sources
Zoning map and Comprehensive Land Use map
Draft of B-Pzoning district
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D Elk River Industrial Park
City of Elk River
(612) 441-7420
. t>.
n McChesney Industrial Park 0,,01
... (612) 441-3374 )! ~
as Rail 10
... (612) 441-6272
In R.R. Industrial Park
iii (612) 427-6100
D AR-MON Industrial Park
Numerous owners; contact the City of Elk River
(612) 441-7420
For iriformation on other industriallY-zoned sites,
contact City Hall
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CITY SOURCES/CITY PARTICIPATION
RE:
ELK RIVER BUSINESS PARK FINANCING CONCEPTS
*Tax
Increment Financing (TIF)
- Access funds for existing TIF Districts to purchase
land and/or improve property
- Recapture funds through:
a) cash sales; or b) creating new TIF Districts
- Reuse TIF Funds for other phases
*EDA Levy
- Use a portion of the EDA's annual levy to acquire
land and/or make improvements
- Excess Levy (reverse referendum)
*HRA
- Historically, the HRA is an urban renewal agency
- Possible partner (i.e. co-developer with EDA)
*Minnesota Statutes, Chapter 429
Enables cities to bond for infrastructure
improvements, subject to the 20% threshold. That is,
20% of the bond issue must be used for street, water,
sewer, etc., costs. Staff is exploring the merits of
utilizing the balance of a bond issue for, say land
purchases
*Grants
- U.S. Economic Development Administration
*Funds available for infrastructure costs
*Does not fund 100% of costs
* Finite grant pool
- Utility Companies
*Possible co-developer, or;
*Cash grant to underwrite a portion of the costs
*Internal Financing
Access funds from various City accounts
- Funds are finite
- Funds need to be repaid
*Borrowed Funds
- Via Contract for Deed
- Via 5 year mortgage against the land
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PROPOSED B-P ZONE
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1. B-P Business Park
STATEMENT OF PURPOSE: The Business Park District is
established to encourage a planned, integrated environment for
certain industrial, office, and limited commercial uses which
are compatible with and compliment each other as well as the
surrounding land uses.
The development may reflect common themes using compatible
architectural design and consistency in signage, landscaping,
and lighting.
a. Permitted Uses -
i. Light manufacturing (not more than 30%
warehouse) including, but not limited to the
compounding, processing, packaging, treatment, or
assembly of products and materials.
ii. Research and development laboratories
iii. Governmental, business, and professional offices
iv. Mail order operations
v. Telecommunication operations
vi. Financial institutions
vii. Outpatient health care facilities
viii.personal service establishments
ix. Health and athletic clubs
x. Restaurants (Class I)
b. Accessory Uses -
i. Off-street parking lots or facilities
ii. Private recreational facilities
iii. Public shelters and essential services
c. Conditional Uses -
i. Light manufacturing (more than 30% warehouse)
ii.
Hotels and motels
iii. Licensed day care facilities
e
e
e
iv.
Zero lot line developments
v. Retail shops and stores which compliment the
Business Park
vi. Vocational, technical, and trade schools
vii. Motor vehicle specialty service stations
viii. Multiple buildings on a lot
ix. Above ground storage tanks
2. STANDARDS
a. Minimum lot size - three (3) acres.
b. Building setbacks (minimum)
i. Front Yard - Thirty-five (35) feet, or one-half
(1/2) the total building height whichever is greater.
11. Side Yard - Twenty (20) feet, or one-half (1/2)
the total building height, whichever is greater.
111. Rear Yard - Twenty (20) feet, or one-half
(1/2/) the total building height, whichever is
greater.
iv. All setbacks shall be determined from the
planned Right-of-Way (ROW), as designated in the
City, County, or State Transportation Plan, and
normally defined in the subdivision regulations.
c. Parking Lot Setbacks (minimum)
i. Front Yard - Thirty-five (35) feet.
ii. Side Yard - Twenty (20) feet.
iii. Rear Yard - Twenty (20) feet.
iv. All setbacks shall be determined from the
planned Right-of-Way (ROW), as designated in the
City, County, or State Transportation Plan, and
normally defined in the subdivision regulations.
d.
Loading Spaces/Overhead Doors
i. Loading spaces/overhead doors shall be located
primarily in designated rear yards and secondarily in
designated side yards. Overhead doors will be
permitted in front yards under unusual circumstances,
as approved by the Zoning Administrator.
.
11. Loading spaces and overhead doors should be
designed to be compatible with the principle
building. Architectural techniques should be
employed to reduce visual impacts from adjacent
properties and roadways.
e.
Refuse Enclosures
i. Refuse enclosures should be primarily located
in designated rear or side yards and shall be
constructed of similar materials as the principle
building.
f. Roof-Top Equipment
All roof-top equipment shall either be:
i. Screened from the eye level view of adjoining
properties by use of exterior wall(s); or,
11. Painted to match or complement the building
structure; or,
iii. Incorporated into an architectural design, as
approved by the Zoning Administrator.
e
g.
Architectural Standards
i. Major exterior surfaces of all walls shall be
face brick, stone, glass, stucco, architecturally
treated concrete cast in place or pre-cast panels,
decorative block, wood, or architectural metal, or
approved equivalent, as determined by the Zoning
Administrator. Wood and metal may be used, provided
that they are appropriately integrated into the
overall building design and not placed in areas which
will be subject to damage associated with heavy use.
e