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2. PCSR 04-24-2007Kiver MEMORANDUM TO: Planning Commissioners FROM: Jeremy Barnhart, Planning Manager DATE: Apri124, 2007 SUBJECT: Consideration of land use change for property south of 175th street. Requested Action 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 designation that would accommodate the proposed use, possibly open space, which allows private recreational facilities. It is important to note that this is not a formal request to amend the land use plan, and should the PC and/ or CC agree to formally review the request, the PC and CC are not obligated to approve a formal application. The Concept review is beneficial for the Planning Commission and City Council (to be aware of major developments being contemplated), staff (to understand the PC and CC concerns, and desires with the project), and the applicant (to get an understand 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. The 240,000 square foot facility, which 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 80 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-1a. 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 facilities. No changes axe proposed to the wetland complex to the south. Additionally, a written description of the project is attached, prepared by Mr. Draeger. 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. The 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. Memo To: Michael Draeger From: Jeremy Barnhart, Planning Manager CC: Scott Clark, Community Development Director Terry Maurer, City Engineer Date: April 20, 2007 Re: Proposed Indoor entertainment facility Planning Staff has completed its prelimniary 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 Coiruiussion at their Apri124, 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 Commission 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 permits may be necessary or required, including an EAW, 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 prelunuiary 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 improvements are necessary. b. An access directly onto Tyler Street will be necessary, likely due west of the SW corner of the building. c. The access onto 175 off the NW corner is too close to the intersection of Tyler and 175t''. This will need to be removed. d. An interior circular road will be necessary to pull the vehicles out of the parking lot and fiuinel 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 nature that can guide the Ciry 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 architecture 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. Architecture and materials should be commensurate with this stature. Additional comments will be forthcoming as direction from the Council is received. If you would like to discuss these processes fi~rdier, please contact me. I can be reached at 763/ 635-1034. Sincerely, --~ d Jeremy Barnhart, AICP Planning Manager • Page 2 Description of Proiect Narrative A typewritten narrative explaining your request in detail should include, 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 Signage -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 Executive 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 ayear-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/Inline Skate Park: Approximately 40,00 consisting of multiple ramps, quarter pipes, rail slides Park will be evaluated and reconfigured on a regular highest level of safety, excitement and participation. 0 sq. ft. of Skate Park and ahalf-pipe. The basis to maintain the CONFIDENTIAL - BELOW32, 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 Oueruiew CONFIDENTIAL- BELOW32, Inc. Introduction BELOW32, Inc. is a company steeped in traditional business principles, bui 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 anon-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. 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