6.0. EDSR 02-11-2008ITEM 6.
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MEMORANDUM
TO: Economic Development Authority
FROM: Jeremy Barnhart, Planning Manager
DATE: February 11, 2008
SUBJECT: Gateway Business Park update
The EDA had directed staff to prepare the property known as Gateway for development, and chose
a layout in June, 2007. The direction given by the EDA was "to wait for the market development
before moving dirt, but have preliminary plans ready to go." June 11, 2007 minutes are attached for
reference.
Since then, the EDA has learned of an `anchor' user for the park, and have tabled the development
plans, pending completion of their internal planning.
Below are the major steps involved into developing Gateway as identified by staff. The steps
include:
1. Plat the property the City owns, including the street through the property. ($12,000)
2. Complete financial analysis for improvement projects anticipated: Streets, utilities, wetland
mitigation. Identify financing options for payment of these projects
3. Initiate 429 process, feasibility study.
4. Bid mitigation project
5. Prepare Street/ Utility plans
6. Bid Street/ Utility plans
7. Complete Streets/ Utility project
8. Prepare mitigation plans and platting documents with project(s)
Next steps
To remain consistent with the EDA's direction, Staff is preparing to take the following two steps:
1. Platting. Plat Gateway, with the main street and outlots. Staff feels comfortable with
this because the street location is largely fixed due to the gas main and connection points at the north
and south. Additionally, platting now will allow the city to identify and clear up any title concerns
that may come up. Staff will present the plat to the EDA before presenting to a public hearing as
C:\Users\dhuebner\AppData\Local\Microsoft\Windows\Temporary Internet Files\OLK87E4\EDA memo RE Gateway 2-11-08 (3).doc
soon as possible. Platting the outlots allows the property to be easily and quickly replatted to
buildable lots.
2. Financial Analysis. Staff has also begun the preliminary financial analysis, as an
understanding of the costs and financing sources will be necessary as the EDA reviews assistance
requests from potential users.
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MEMORANDUM
TO: Jeremy Barnhart, Planning Manager
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FROM: Rebecca Haug, Environmental Administrator ~~'
DATE: February 6, 2008
SUBJECT: Gateway Business Park Wetland Issues
As requested, staff met with Keith Grow, Board of Soil & Water Resources (BWSR) who
administers the Wetland Conservation Act (WCA) rules regarding the Gateway Business
Park for preliminary discuss regarding anticipated wetland impacts. During our meeting
with Keith, we were informed that the WCA will not approve applications for speculative
developments. This was brought up after asking what the possibility of impacting wetlands
without knowing the specific development proposal would be. For the City this means
specific development proposals must be identified prior to any wetland impacts being
considered for approval by the Technical Evaluation Panel (TEP).
However, the road infrastructure can go through the WCA process prior to having specific
development proposals identified. Please let me know if you need further clarification on the
WCA rules regarding Gateway Business Park.
MEETING OF THE ELK RIVER
ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, JUNE I I, 2007
Members Present: President Gongoll, Commissioners Dwyer, Farber, Klinzing, Motin, and
Zerwas
Members Absent: Commissioner Tveite
Staff Present: Director of Economic Development Catherine Mehelich, Planning
Manager Jeremy Barnhart, City Engineer Terry Maurer, and Recording
Secretary Jessica Miller
Call Meeting To Order
Pursuant to due call and notice thereof, the meeting of the Economic Development
Authority was called to order at 5:30 p.m. by President Gongoll.
Consider Agenda
MOVED BY COMMISSIONER KLINZING AND SECONDED BY
COMMISSIONER FARBER TO APPROVE THE AGENDA. MOTION
CARRIED 6-0.
3. Consider Consent Agenda
MOVED BY COMMISSIONER DWYER AND SECONDED BY
COMMISSIONER FARBER TO APPROVE THE CONSENT AGENDA AS
FOLLOWS:
3.1. MAY 14, 2007 MINUTES
3.2. CHECK REGISTERS
3.3. BALANCE SHEET
3.4. REVENUE/EXPENDITURE REPORT
MOTION CARRIED 6-0.
4. Open Mike
No one appeared for open mike.
Consider Gateway Business Center Development Concepts
Planning Manager Jeremy Barnhart explained that at the April 9, 2007 EDA meeting, staff
was directed to develop three conceptual layouts for discussion on the Gateway project. Mr.
Barnhart stated that the consensus of the EDA was that the park should have more of a
retail component. Mr. Barnhart reviewed the assumptions staff made in development of the
plans. Mr. Barnhart then presented the three options as follows:
Economic Development Authority Minutes
June 11, 2007
Page 2
O tion A
Includes a variety of lot sizes, including three big box lots (10-17 acres), three smaller
commercial lots, and 9.57 acre industrial parcel in the southeast. The plan includes aright-in
off of Highway 10. The smaller commercial lots are served via a `backage' road between
Highway 10 and Ulysses. Option A has the greatest impact to existing wetlands, and a big
portion of property west of Ulysses is used to mitigate these wetlands. An additiona111 acres
of wetlands would need to be mitigated elsewhere. Option A requires the mitigation of 12.14
acres (24.3 acres).
O tion B
Shows two big box retail sites immediately adjacent to Highway 10, sized 19-28 acres. This
plan provides more land for industrial sites, although any of the lots on any of the plans
could conceivably be converted to industrial uses based on size. The plan also utilizes a
right-in off of Highway 10. This plan has slightly reduced impact to the wetlands, requiring
mitigation of approximately 9.64 acres (19.3 acres). Any access off of Highway 10 would
require MnDOT approval.
O tion C
Includes small ancillary commercial lot in the NW corner, two big box lots along Highway
10, and 5-9 acre commercial sites on the east side of Ulysses. A 12-acre industrial site is
located in the SE corner. There is minimal impact to wetlands (1.1. acres) requiring only the
creation of 2.2 acres. This plan effectively requires the acquisition of the Weicht property.
President Gongoll indicated that Commissioner Tveite was unable to attend the meeting but
provided his comments via email. President Gongoll shared these comments. He stated that
Commissioner Tveite's preference is Option B with the revision from "big box" to
"commercial" to allow the city as much flexibility as possible to address potential users.
Commissioner Tveite also prefers Option B because of the industrial presence away from
the Highway and near the RDF plant. President Gongoll explained that Commissioner
Tveite would like to the city to reach out to private land owners to verify their plans and see
if they are willing to work with the city on land acquisition. Commissioner Tveite also noted
in his email that even though the market survey wasn't optimistic about commercial/retail
along Highway 10, he believes the highway offers an asset down the road (i.e., 5 years) and
he would want to keep an eye towards this use fronting the highway.
President Gongoll concurred with Commissioner Tveite's comments.
Commissioner Klinzing stated that Option B best reflects what she would like to see. She
believes the area will be valuable for commercial and likes the size of the lots.
Commissioner Motin questioned if staff could check with Cargill and see if they are
interested in developing their portion of the neighboring property in the future. He stated
that he was leaning towards Option A but has no problem with Option B.
President Gongoll indicated that he believes the best option is for the city to have
discussions with the property owners to see if they are interested in selling. He stated that if
the city owns the property then the city has the flexibility of when the property is developed.
Mr. Barnhart stated he felt that single ownership was necessary for the efficiency of the
development. He noted that if the city purchasing the neighboring land is not an option, the
city may want to consider selling their property to a neighboring landowner in order to
create a larger parcel.
Economic Development Authority Minutes Page 3
June 11, 2007
------------------------------------------
Mr. Barnhart verified that the EDA indicated a preference for the land layout in option B.
He indicated that based on the EDA's direction, staff will begin discussions with
neighboring property owners regarding land acquisition.
Commissioner Motin noted that staff should also initiate discussions with Cargill. He added
that he is not interested in the city land being bought out unless strict development
restrictions are placed on the land in order to control project quality.
Mr. Barnhart questioned the EDA's timing goal for opening of the Gateway project.
President Gongoll stated that the roads and utilities could be constructed and the market
could dictate the rest., but agreed that these improvements not be made by spring 2008. The
EDA concurred to wait for the market/development before moving dirt, but have
preliminary plans ready to go.
6. Update on Downtown Redevelopment Plan Taskforce
Director of Economic Development Catherine Mehelich provided an update on the
Downtown Redevelopment Plan Taskforce meeting. Ms. Mehelich explained that at the last
meeting, a large group visioning took place. She reviewed the proposed timeline as follows:
^ June 25 - Taskforce's first review of draft plan
^ July - Taskforce's final review of draft plan
^ August -Plan distributed to boards and commissions for comment
^ September -Three open houses held to gain public input
^ October/November -Taskforce review input received from boards/commissions
and public
^ December - HRA and Council adoption of plan
Ms. Mehelich outlined a few of the items identified by the Taskforce as part of the plan:
1. Revitalize and strengthen residential housing areas adjacent to the downtown.
2. Enhance the connection to the river.
3. Redefine core downtown from the traditional retail focus to improve economic success.
Look at other market opportunities like residential and specialized commercial to
strengthen the area.
4. Identify different land uses for north of Highway 10 to help maximize the market
opportunities but not compete with the southside of Highway 10 and the core
downtown.
Other Business
Ms. Mehelich indicated that Alliance Machine, 17520 Tyler Street, is having an open house
on June 13 from 1:30 to 5:30 p.m. to celebrate their new building.
Adjournment
There being no other business, President Gongoll adjourned the meeting of the Elk River
Economic Development Authority at 6:14 p.m.
Minutes prepared by Jessica Miller.
Economic Development Authority Minutes
June 11, 2007
Page 4
Tina Allard
City Clerk