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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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