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6.5. SR 01-22-2002City ~ RAver MEMORANDUM Item # 6.5. TO: FROM: DATE: SUBJECT: Mayor and City Council Michele McPherso ,~, Director of Planning January 22, 2002 Case No. OA 01-09 Request by the City of Elk River to Amend Business Park District Permitted and Conditional Uses Request The City Council is asked to consider an amendment to the Business Park District standards to establish definitions for warehousing and showrooms and to allow showroom space, repair/servicing of equipment, and increased warehouse space. Attachments · October 2, 2001 Brookstone, Inc. letter regarding warehouse amendment · Existing Business Park District language · Proposed Business Park District · Ordinance Number 02- Overview In 1995 the City created the Business Park District to encourage a higher level of industrial development. The district's purpose statement and uses clearly indicate.the City's desire to promote high value buildings and the creation of jobs. In 2001, the Planning Commission recommended and the City Council adopted revised business park building design standards to continue to encourage high value building construction, but to allow more choices in acceptable building materials. Brookstone, Inc., in its conversations with staff, has continued to express a concern with the limitation on warehouse uses within the Business Park District. Staff, the City Attorney, and Brookstone, Inc. have prepared the proposed language for consideration by the Planning Commission. The proposed language was reviewed by the Economic Development Authority at their October 8th, 2001 meeting. Memo to Mayor and City Council/OA 01-09 January 22, 2002 Page 2 Analysis The current language limits warehouse uses to 30 percent of the permitted use unless a conditional use permit is granted. Mr. Martens, representing Brookstone, Inc., has expressed a concern with this limitation as well as the lack of showroom and repair as permitted uses in the district. Staff has been working with Mr. Martens regarding an ordinance amendment to allow uses more typical of the current industrial market within the Business Park District, however, there is a need to balance this with the overall purpose of the district which is to encourage businesses which generate a high number of jobs per square foot, rather than predominantly warehouse uses. The changes proposed to the Business Park District would allow: (1) (2) (3) Warehouse space up to 50 percent of the entire building Showroom uses Repair and maintenance uses excluding auto repair Also proposed are definitions for warehouse and office showroom uses. The letter submitted by Mr. Brookstone expresses his position. The Economic Development Authority directed staff to allow aggregation of warehouse space in a multi-tenant building, however, capped the maximum amount of warehouse space in any building at 65 percent. Planning Commission Action The Planning Commission first reviewed this request at their October 23, 2001 meeting. At that time, consideration of the request was tabled in order to allow further research by staff. The Commission requested that the key industrial brokers review the revised language and that other cities' ordinances be reviewed for similar language. Staff completed the requested research and made no changes to the proposed language. The Planning Commission conducted a public hearing regarding the ordinance change at its December 18, 2001 meeting. Mr. Martens, Mark Huus from Amcon Construction, and EDA President Jeff Gongoll spoke in favor of the proposed language change. The Commission voted unanimously to recommend approval of the request to the City Council. Recommendation Staff and the Planning Commission recommend that the City Council approve the proposed language. S:\PLANNING\Case Files\12 19 01 Oa01-09CC.DOC Tuesday, October 02, 2001 Ms. Catherine Mehelich Dkector of Economic Development City of Elk P, iver 13065 Orono Parkway PO Box 490 Elk River, Minnesota 55330 BROOKSTONE, 1NC. 7400 Metro Blvd., Edina, M~nnesoXa 55439 6 I2,837.9167 phone 612.837.8010 fax Dear Cathy: Furtller to numerous discussions with the City of Etk River's planning director, Michele McPherson, and our scheduled appearance before the EDA of the City of Elk River on Monday, October 8~, I am writing this letter to state the position of the Elk River Business Park owners with regard to the proposed modifications to file permitted and condition~ use sections of the B-P Business Park District. Our response to date has been based upon concerns we have had with the limitation on the amount of warehouse space in our office/warehouse buildings. We appreciate the opportunity to work together with you on this issue and to present our point of view to various approval groups. While we clearly understand the City's deske to maximize job growth and job opportunities within the city, from the very beginning, we envisioned both build-to-suit and multi-tenant office/warehouse buildings. While not in any way a fu'm plan, a conceptual plan showing buildings ranging from 30-60,000 square feet were laid out in the various parcels as we worked our way through the approval processes. Throughout the Twin Cities, office/warehouse buildings are a mix of, to one degree or another, finished and unfinished spaces. The finished spaces and these are generally all permitted uses under your zoning by4aws, include offices, showroom and laboratory and other highly finished work areas. The unfinished areas, that is the warehouse portion of the office/warehouse term, include pure warehousing and distribution, shipping and receiving facLlities, light manufacturing, repair and maintenance, vehicular storage, and research and testing. On some occasions, the unfinished area is upgraded to include air conditioning, a higher level of lighting, etc. and in some cases, whether for manufacturing or warehousing, is left in a more warehouse form. While manufacturing is generally a part of most business parks, given that approximately 16% of overall employment in this Country is accounted for by the manufacturing sector and given further the significant amount of manufacturing that has moved overseas, the dominant use in the unfinished portion of office/warehouse buildings is not manufacturing but ati of the other industrial uses mentioned above. The finish percentages for office and showroom spaces are generally higher in locations within close proximity to downtown areas and major metropolitan landmarks suSh as airports, major shopping facilities, and also at locations having some commercial aspect to them. This location does not offer the proximity to major landmarks but it does have a commercial aspect to it given the exposure of at least some portion of tile buildings to highway 169 together with the adjacency to the retail development to the north. However, generally, the kinds of office/warehouse buildings envisioned for this location would not be finished greater than 25-40%. This leaves 60-75% of unfinished space and our concern is with limiting the use of this space in such a manner that we are unable to effectively market this properts,. Also, these are aggregate numbers. In individual tenant spaces, unfinished areas will range from 0 to 100%. We have always felt that your building codes could much more effectively regulate the issues at hand and meet your goals by requiring some 'kind of public hearing approval for buildings that are clearly designed as distribution buildings. For example, our fu'st building is an 18' clear height with bay sizes of less than 5,000 square feet. Tile NAIOP definition of distribution is far outside those parameters. A distribution building would be in the clear height range of 24'-32' and have bay sizes ranging from 8-15,000 square feet with much greater depth than our first building has or that we anticipate having for other future buildings. If you deem it necessary to place percentage limitations on the amount of warehouse space, then we would request the following: We would like to see tile 50% limitation on warehouse space be viewed in aggregate for any particular building rather than on an individual tenant basis. This would allow more flexibility on our part with regard to marketing and indMdual tenant negotiations. The goals of the City would simply be established and achieved on an overall square footage basis rather than on an individual square footage basis. We would also like to raise the maximum percentage of warehouse allowed under the conditional use section from 65% to a higher number and simply not preclude an approval, for example, of a build-to-suit for a company that Elk River desires to attract to its community and under a specific percentage limitation would be precluded from doing so. We have written this letter in the spirit of working together with the City of Elk River in a positive and collaborative manner based upon the intent established when the development agreement was first negotiated and entered into. Our requests, we believe, do not deviate from those goals and are more in synch with market in general and also for this site, specifically. We are hopeful of a positive response when we meet before the EDA on October 8~' and subsequent meetings with the planning commission and city council. If any additional information is required, please call me. ...ry truly, R/chard V. Martens President RVM/bb Cc: 'Michele McPherson - City of Elk River Jim Winkels - Partner, Elk River Business Park, LLC Liza Robson - Partner, Elk River Business Park, LLC Tony Gleekel - Siegel, Brill, Greupner, Duffy & Foster, P. A. 16. B-P Business Park District (Existing Language) STATEMENT OF PURPOSE: The Business Park District is established to encourage a planned, integrated environment for certain industrial, office, and commercial uses which are compatible with, and compliment each other as well as the surrounding land uses. The underlying land use designation within the district may vary, either light industrial or highway business. Development within the Business Park district will correspond with the land use designation. Industrial and office uses allowed where the land use designation is light industrial, and commercial uses allowed where the land use designation is highway business. It is the intent of this ordinance that development reflects common themes using compatible architectural design and consistency in signage, landscaping, and lighting. It is also the intent to encourage businesses which generate a high number of jobs per square foot rather than predominately warehouse type uses. A. Permitted Uses i. Permitted uses allowed when the underlying land use is light industrial: a. Light Manufacturing b. Research and development laboratories Co Government, business, and professional offices d. Mail order operations e. Telecommunication operations f. Sherburne County fair ii. Permitted uses allowed when the underlying land use is highway business: a. Health athletic clubs b. Personal service establishments c. Financial institutions B. Accessory Uses: i. Off-street parking lots or facilities ii. Private recreational facilities iii. Public shelters and essential services iv. Retail Sales provided the following conditions are met: a. The retail sales activity is not located in an administrative office facility, but is located within a business, the principle use of which is not commercial sales. b. The retail sales activity shall not occupy more than fifteen (15%) of the gross floor area, or a maximum of 5,000 square feet of the occupied quarters, whichever is less. c. The retail sales activity is related and subordinate to the principle use. d. No sign identifying or promoting that retail sales occur within the building shall be visible from outside the building. C. Conditional Uses: i. Conditional uses allowed when the underlying land use is light industrial: a. Any permitted use which involves more than 30% warehouse space b. Vocational, technical and trade schools c. Loading areas/overhead doors when located in front yards d. Above ground storage tanks ii. Conditional uses allowed when the underlying land use is highway business: a. Hotels and motels b. Licensed day care facilities c. Retail shops and stores which compliment and serve the Business Park subject to the standards set forth in 2(j) below. d. Motor vehicle specialty service stations e. Loading areas/overhead doors when located in front yards Multiple tenant buildings Restaurants (Class I) 16. B-P Business Park District STATEMENT OF PURPOSE: The Business Park District is established to encourage a planned, integrated environment for certain industrial, office, and commercial uses which are compatible with, and compliment each other as well as the surrounding land uses. The underlying land use designation within the district may vary, either light industrial or highway business. Development within the Business Park district will correspond with the land use designation. Industrial and office uses allowed where the land use designation is light industrial, and commercial uses allowed where the land use designation is highway business. It is the intent of this ordinance that development reflects common themes using compatible architectural design and consistency in signage, landscaping, and lighting. It is also the intent to encourage businesses which generate a high number of jobs per square foot rather than predominately warehouse type uses. A. Permitted Uses i. Permitted uses allowed when the underlying land use is light industrial: a. Light Manufacturing b. Research and development laboratories Co Government, business, and professional offices d. Mail order operations e. Telecommunication operations fair Sherburne County h. Sbow~ oom Space Repair and maintenance, excluding repair ii. Permitted uses allowed when the underlying land use is highway business: a. Health athletic clubs b. Personal service establishments c. Financial institutions B. Accessory Uses: i. Off-street parking lots or facilities ii. Private recreational facilities iii. Public shelters and essential services iv. Retail Sales provided the following conditions are met: a. The retail sales activit~ ~ not located in an administrative office facility, but is located within a business, the principle use of which is not commercial sales. b. The--retail sales activit~ shall not occupy more than fifteen (15%) of the gross floor area, or a maximum of 5,000 square feet of the occupied quarters, whichever is less. c. The retail sales activity is related and subordinate to the principle use. d. No sign identifying or promoting that retail sales occur within the building shall be visible from outside the building. C. Conditional Uses: i. Conditional uses allowed when the underlying land use is light industrial: maximum of b. Vocational, technical and trade schools c. Loading areas/overhead doors when located in front yards e. Above ground storage tanks ii. Conditional uses allowed when the underlying land use is highway business: a. Hotels and motels b. Licensed day care facilities c. Retail shops and stores which compliment and serve the Business Park subject to the standards set forth in 2(j) below. d. Motor vehicle specialty service stations e. Loading areas/overhead doors when located in front yards f. Multiple tenant buildings g. Restaurants (Class I) Warehouse space shall mean the space ~sed for storin~ merchaNd, ise cor~nodities. The area occupied b,~' the ach of ship?inq o~{. receivi'.'~,~ merchandise shall_ not be Jnc].nded i~ the floor ,a~.ea ,'.~,~-iicuiatior~ f~r warehouse space. Office/Showroom space shai! nLean SP~Ce ~Na~ i'.~ ~Ni~Jiixed primarily the display of products mannfac'i' ire i. ~uch space may o~'~ '~2_ay ~'~ot be finished. ORDINANCE 01 - CITY' OF ELK RIVER AN ORDINANCE OF THE CITY OF ELK RIVER AMENDING SECTION 904 OF THE CITY CODE OF ORDINANCES Case No. OA 01-09 The City Council of the City of Elk River does hereby ordain as follows: Section 1. Section 900.12(16) titled, "Business Park", of the City of Elk River Code of Ordinances shall be amended read as follows: A. Permitted Uses g. Warehouse space not exceeding fifty percent (50%) of the Co ho entire building. Showroom space. i. Repair and maintenance, excludinq auto repair. Conditional Uses a. .... ~ pcrmittcd use ...... ~~ acrs ................... c space, a. Warehouse space exceeding fifty percent (50%) of total building floor area up to a maximum of sixty-five (65%) the Warehouse space shall mean the space used for storing merchandise or commodities. The are occupied by the act of shipping or receivinq merchandise shall not be included in the floor area calculation for warehouse space. Office/Showroom space shall mean space that is utilized primarily for the display of products manufactured. Such space may or may not be finished. Section 2. That this ordinance shall take effect upon publication as provided by law. Passed and adopted by the City Council of the City of Elk River this 22nd day of January, 2002. Attest: Stephanie Klinzing Mayor Sandra A. Peine City Clerk