5.3.B. SR 05-14-2007
City of
Ell( --
River
REQUEST FOR ACTION
To
Ci Council
Agenda Section
Worksession
Item Description
Request for Land Use Amendment Concept Review: Michael
Draeger, BELOW32 for Indoor Ski Facility Proposal
Meeting Date
Ma 14,2007
Item Number
5.3.B.
Prepared by
erem Barnhart, AICP
Reviewed by
Scott Clark, Community Development
Director
Reviewed by
Action Requested
Direction on a potential land use amendment for property on 17 5'h Avenue.
Background/Discussion
The applicant is in the early stages of site design for a large scale, intense land use proposed for property
east of Twin Lakes Parkway and south of 175'h Avenue. Because the project will include a significant
amount of preparation on his part, including traffic and soils analysis, etc., staff suggested he approach
the Planning Commission and City Council with a concept, to gauge the Council's interest in the project,
and to identify potential "red flag" concerns held by staff, the Planning Commission, and City Council.
To build the project as discussed, formal applications will need to be made for the following:
1. Land Use Amendment (fo change the land use from high density residential to another land use
and incorporate the property into the urban services district)
2. Subdivision
3. Rezoning
4. Conditional Use Permit (Likely, depending on rezoning)
Financial Impact
None
Attachments
. Staff memo to Mr. Draeger dated April 27, 2007
. Staff memo to Mr. Draeger dated May 9, 2007
. Executive Summary ofBELOW32
. Indoor Ski Facility Concept and Layout
Overview/ Analysis
The Planning Commission (PC) and City Council (CC) are asked to consider a potential change to the
City's land use plan, reclassifying an area guided for high density residential to a designation that would
accommodate the proposed use, possibly open space or a commercial, which allows private recreational
facilities.
It is important to note that this is not a formal request to amend the land use plan, and the PC and CC
are not obligated to approve a formal application once received. The Concept review is beneficial for the
Planning Commission and City Council (to be aware of major developments being contemplated and
provide initial feedback), staff (to understand PC and CC concerns, and desires with the project), and the
applicant (to get an understanding of the major issues observed by staff, PC, and CC). Following input
regarding the concept plans, staff will work with Mr. Draeger towards development of a proposal that
meets Council's stated and published goals.
The Proposal
City staff has been approached by Michael Draeger with a proposal to build a large scale, indoor ski,
snowboard and recreational facility. See attached narrative description. The 240,000 square foot facility
would include 50,000 square feet of complimentary retail and eating establishments, a 130' high indoor
ski hill, ice rinks, and other features, would be located in approximately 60 acres south of 175" and east of
Twin Lakes road, northeast of the future train station. The property is currently guided for high density
residential and zoned R-la. The property is not currently within the urban services district, although with
the existing guided land use, it appears that the expansion of the district to include the subject property
was anticipated.
A conceptual layout of the approximately 80 acres of gross land area shows a hotel on the west edge of
the proposed development, the main entertainment venue in the middle, and two 45 unit, 3 story
residential buildings on the east side. A large parking lot serves the facility. No changes are proposed to
the wetland complex to the south.
The site was chosen by the applicant due in part to the transportation network (proximity to the train
station, Highways 10 and 169). Elk River is desired due to it's proximately to two population centers
(Twin Cities and St. Cloud).
The concept review is purposely general, more detailed information will be necessary as part of formal
submittal for land use change. This will include environmental, utility, parking, and traffic impacts,
architecture of the building, landscaping, etc.
Again, the request is to understand interest in changing the existing land use to accommodate a land use
that was not anticipated at the time the Comprehensive Plan was drafted.
Planning Commission Reaction
The Planning Commission reviewed the concept review, and had some comments and concerns to be
addressed as part of the formal center. A complete synopsis, prepared for the applicant, dated April 27,
2007 is attached. The focus of the concerns was twofold:
. Is this the best location for it, and
. What are the infrastructure impacts (streets, utilities) and demands.
There was a fair amount of comment suggesting that the City owned property south of the train station
(Gateway) would be a better fit.
Recommendation
Staff is requesting direction and identification of concerns and issues as the applicant prepares formal
application.
Respectfully Submitted
~~
Jeremy Barnhart
Planning Manager
Action
Motion by_
Second by _
Vote
Follow Up
City of Elk River
Memo
To:
From:
CC:
Date:
Re:
Michael Draeger
Jeremy Barnhart, Planning Manager
April 27, 2007
Summary of Planning Commission discussion
The following items were discussed by the Planning Commission at their meeting on April 24. The City
Council will receive these comments at their workshop review on May 14, 2007.
1. How does this project compare to the previously approved land use in terms of tax capacity, traffic and
utility needs, etc.
2. One Planning Commissioner felt that money should be earned near the train station, not spent
(Employment center)
3. Some had concern with the proximity to adjacent residential (to the south and east).
4. What are the expected traffic impacts to the area roads, intersections?
5. Can the utility and street infrastructure handle this change? What is the impact?
6. Architecture (what will it look like, specifics)
7. Location:
a. How much land do you need?
b. How close to the train station, traffic corridors
c. Expandability of ancillary, support businesses (Restaurants, shopping, etc.)
8. One Cormnissioner was cautious against changing the land use plan for this subject property, saying that
property owners had provided a significant voice during the development of that plan.
9. In addition to these comments and those previously disnibuted , Staff also was add:
a. The need or benefit of the residential within the parcel
b. Environmental impact with the water table, wetlands (feasibility of construction).
c. What are the actual amenities within facility (ice sheets, climbing walls, etc)
d. Timing and phasing of the project. Ski facility first, ancillary uses second
Additional comments will be forthcoming as direction from the Council is received. If you would like to
discuss these processes further, please contact me. I can be reached at 763/ 635-1034.
Sincerely,
~~
Jeremy Barnhart, AICP
Planning Manager
1
City of Elk River
I
Memo
To: Michael Draeger
From: Jeremy Barnhart, Planning Manager
CC: Scott Clark, Community Development Director
Terry Maurer, City Engineer
Date: May 9, 2007
Re: Proposed Indoor entertainment facility
Planning Staff has completed its preliminary review of your proposed indoor entertainment venue. The
conceptual information you have provided is in support of a Council review of your concept at their May
14, 2007 workshop meeting, and the Planning Commission at their April 24, 2007 workshop meeting.
To aid in your discussion with the City Council, Staff has prepared preliminary written comments; these are
intended to identify some issues, but should not be considered as complete comments for your project. As
more detailed plans and information come forward, staff will provide comment based on applicable city
ordinances and codes, and Planning Comntission and City Council direction from their review.
Please provide a written narrative of your proposal, for inclusion in the Planning Commission and City
Council packets. The narrative should include the following information, attached
It is suggested that you begin discussions with the City's Building, Fire, and utility departments to discuss
issues or comments they may have. Please contact me, and I can work with you to set those meetings up.
Please note that additional external penuits may be necessary or required, including an EA W, these will be
identified as part of the formal review. .
Land Use. applications. As we discussed, the proposed land use would require a land use amendment,
and the Planning Commission and City Council will be asked to focus on the land use aspect. The
following comments should be addressed as you prepare formal application. Prior to construction, a
preliminary and final plat was also be necessary, to consolidate the parcels.
Comments identified by Staff include:
Transportation:
a. A traffic impact study may be necessary to better understand the impact onto the adjacent street
network, and to determine if additional off site improvernents are necessary.
b. An access directly onto Tyler Street will be necessary, likely due west of the SW comer of the
building.
c. The access onto 175'" off the NW comer is too close to the intersection of Tyler and 175"'. This
will need to be removed.
d. An interior circular road will be necessary to pull the vehicles out of the parking lot and funnel to
the limited accesses.
Utilities:
a. Storm water will need to be retained on site. Earlier, it was discussed that the water would be
retained to support the interior snow making needs. More specifics on this will need to be reviewed. At
minimum, there should be no net increase of water leaving the site.
Landscaping:
a. Additional green space should be introduced to the parking lot and the site in general.
Parking:
a. Additional information will be necessary to better understand the parking demands for the
project How many square feet do you anticipate for food, retail, etc. Is there any other projects of similar
narure that can guide the City on the review of the parking needs.
b. Due to the large size of the parking lot, clear and defined pathways to the entrances will be
necessary.
Architecture:
Please be prepared to comment on the proposed architecrure and materials of the building.
Previous discussions have indicated that the building will be approximately 130 feet tall. If this entire
height is above ground, this would represent a significant visual impact on the city skyline. Architecrure
and materials should be commensurate with this starure.
Additional comments will be forthcoming as direction from the Council is received. If you would like to
discuss these processes further, please contact me. I can be reached at 763/635-1034.
Sincerely,
9:>~
Jeremy Barnhart, AI CP
Planning Manager
. Page 2
Description of Proiect Narrative
A typewritten narrative explaining your request in detail should inciude, but not limited to, all
the following applicable information:
o Detailed description/scope of project. What is being proposed?
o Hours of Operation
o Number of Employees
o Number of parking stalls, existing and additional
o Is there proposed screening of the site?
o Proposed building materials (How do they comply with applicable design standards)?
o Sign age - How many? What type? Locations?
o Is there outdoor storage? What is being stored? How much? Proposed screening?
o What are the impacts to the site? Percentage of tree removal, amount of grading, etc?
o Was is the anticipated project timeline? Groundbreaking, business opening, etc?
o What are the reasons for the proposed Ordinance Amendment?
o What is the purpose of the Easement Vacation?
o What has changed to warrant the Land Use and/or Zone Change?
. How is the request consistent with City of Elk River Comprehensive Plan?
. How compatible is it with surrounding properties?
o Why the rezoning of a development to PUD is being requested?
. What are the benefits to the City?
. Page 3
EX8CutivB Summary
Michael Draeger, the Founder of BELOW32, Inc. recognized a phenomenally
strong and growing trend appearing on Alpine Ski slopes internationally:
Snowboarding. He also recognized the unique challenges of accommodating
both Alpine Skiing and Snowboarding on the same site. His study and reflection
on this challenging opportunity lead him to conceive of a design and an operating
strategy for an indoor facility which could effectively and profitably accommodate
the needs of both sports. The current project (as discussed below) is an
explanation of and expansion on those original ideas.
BELOW32, Inc. was formed to design, build and operate a year-round, indoor
skiing, snowboarding, skate-boarding and climbing facility that will also provide a
unique food and retail experience to young people, their families and friends.
Building of the initial facility will be supported by state-of-the-art snowmaking
technology and related facility management systems. It should be noted that
early attempts to implement the concept of indoor snow-related recreation proved
difficult to make profitable. Today, due to new marketing opportunities, advances
in snow making technology and the more favorable installation and operations
costs, it seems highly probable that a new operation, strategically placed in a
high traffic area and operated by experienced management will quickly become a
very profitable business.
BELOW32, Inc. has identified just such an opportunity and is proceeding to
secure the funding to launch a facility in the Minneapolis/St. Paul area and the
Las Vegas area of Nevada.
Construction cost for the facility is estimated at $30 million and will take
approximately 18 months to complete.
The facility will provide:
. Skiing/Snowboarding: Approximately 4-5 acres of snow surface consisting
of a competition half pipe, multiple spines, tabletops and quarter pipes. Slope
will be serviced by a chairlift for uphill transportation and real snow will be
produced and maintained utilizing proven, existing technology. The slope will
be evaluated and reconfigured on a regular basis to maintain the highest level
of safety, excitement and participation.
. Skateboard/In line Skate Park: Approximately 40,000 sq. ft. of Skate Park
consisting of multiple ramps, quarter pipes, rail slides and a half-pipe. The
Park will be evaluated and reconfigured on a regular basis to maintain the
highest level of safety, excitement and participation.
CONFIDENTIAL - BElQW32, Inc.
. Climbing Walls: The facility will have climbing walls for rock and ice climbing
experiences. A variety of structures will be available to test individuals of all
ability levels. The construction will allow for the changing of "routes" to keep
the experience fresh and exciting.
. Complementary Services: Services, such as rental equipment for all
activities, will allow beginners to sample new sports while still catering to the
needs of customers with advanced skills. Lesson programs will be focused on
customers of all ages and skill levels. Retail food outlets and vending,
catering to the taste of today's young customers and their families, will be an
integral part of our plan. The facility will also provide a venue for special
events featuring clinics with professional experts, equipment seminars,
swaps, and group meetings and conferences.
. Ice Rink: We are currently discussing the feasibility and fit of including
sheet(s) of ice to our design.
. Strategic Alliances with Manufacturers: BELOW32, Inc. will utilize all
aspects of the industry to maintain the leadership role in technology and
products within each recreational sport. Our strong relationship with
manufacturers will ensure top quality involvement with the best the industry
has to offer.
CONFIDENTIAL - BELOW32, Inc.
The Concept
The indoor snow sports business is expanding rapidly in many countries around
the world, and to date there are no indoor facilities in the U.S.
BELOW32, Inc. intends to build and operate the first year-round indoor snow
sports facility in the United States.
In addition to skiing and snowboarding, the venue would offer a skateboard park,
climbing walls of rock and ice as well as a uniquely enjoyable entertainment
experience.
BELOW32, Inc.'s vision is to build and successfully operate the first and the
finest indoor snow-related facility in the United States, with opportunities for
developing future operations at strategic locations throughout the country.
CONfiDENTIAL - BElOW32, Inc.
Industry OvurviBw
CONFIDENTIAL - BELOW32, Inc.
Introduction
BELOW32, Inc. is a company steeped in traditional business principles, but
revolutionary in its approach to be the preeminent indoor/outdoor sports venue in
the United States.
. Customer Service
. Accessibility
. Value
The concept materialized out of the Founder's twenty-five plus years of
experience as a sports enthusiast and Ski Area General Manager. His
investigation of the concept feasibility resulted in the creation of BELOW32, Inc.
What he found was startling in its overall context, but not surprising based on
changing recreational customer needs and objectives. Mr. Draeger then
assembled a team to direct the BELOW32, Inc. concept to its present position in
the overall plan.
Ski Industry
The Alpine Ski Industry is currently a non-growth industry, consisting primarily of
small, family oriented businesses (although corporate consolidation is now
occurring, e.g. American Ski Corp.). Alpine Ski areas have ignored fundamental
business principles and customer service issues, and created adversarial
relationships while driving up customer per visit dollars. In the past, ski areas
have ignored snowboarding, the fastest growing segment in the industry, just as
they have ignored the demographics of the paying customers, their needs,
wants, and ability to spend. Even though the industry and its customers are
diametrically opposed, Alpine Skiing is now, and will continue to be, a viable
winter sports activity, despite reduced or static participation and growth.
Snowboarding, however, has experienced explosive growth in recent years. Ski
Areas are now trying to capitalize on growth segments with minimal success.
(Destination resorts are doing a reasonable job in this regard; while local and
regional facilities lag far behind.) Understanding the customer is still a foreign
concept to most operations. Most facilities are not customer friendly, challenging
or aesthetically appealing to the major growth segments of recreational sports.
The recreation business continues to concentrate on operations rather than
promotion, customer service, aesthetics and value pricing. The process and
preparation requires updating to create the ultimate facility and the total customer
satisfaction guests demand.
CONFIDENTIAL - BELOW32, Inc.
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