2.1. SR 02-19-1996':ty of
iver
FROM:
DATE:
SUBJECT:
MEMORANDUM
Mayor & City Council
Planning Commission
Steven B. Ach, City Planner~~
February 19, 1996
Growth Management
Introduction
With the recent adoption of the Comprehensive Plan, which included an
expanded urban service area, the city needs to revisit and assess its current
growth management policies and ordinance requirements to make sure these
policies and ordinances will implement the adopted Comprehensive Plan.
The City of Elk River's 1988 and recently adopted 1995 Comprehensive Plan
endorsed a basic growth management strategy to develop from the central
core outward in an orderly manner.
This approach is the typical development pattern any city or region will
adopt to achieve managed growth. Simply put, as utilities, streets, and other
infrastructure is extended by either a city initiated project or developer
driven, development occurs accordingly. From a public policy standpoint,
this development pattern utilizes strong planning principles, prudent fiscal
management, and minimizes early investment in additional public services.
What does the ordinance say today regarding controlling commercial
and industrial development?
The current zoning ordinance states that "All commercial and industrial
development within the urban service area must hook up to city water and
sewer". However, prior to expanding the urban service area down East
Highway 10, this requirement only affected vacant commercial and industrial
(Business Park) zoned property along West Highway 10, industrial property
along Proctor Avenue (north of public works facility), and some commercial
property along Highway 169 (Hillside Estates, Earl Hohlen). However, now
that the urban service area has been expanded down East Highway 10,
several vacant commercial and industrial properties are subject to this
ordinance.
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · (612) 441-7420 ° Fax: (612) 441-7425
Memo to City Council and Planning Commission
February 19, 1996
Page 2
What ordinances are in place controlling the growth of residential
development?
The intent of the ordinance for all property zoned residential within the
urban service area is to have these areas developed as urban sized lots
(10,000-14,000 square feet). What is not clearly stated in the ordinance is the
minimum lot size if a property owner wanted to subdivide residential
property prior to city water and sewer. As staff has stated in the past, under
these conditions, the minimum lot size should be kept as large as possible (10
acres) to provide for the efficient extension of utilities at a later date.
The second problem that currently exists is that the newly expanded urban
service area between County Road 12/13 is zoned Rla. This zoning
designation allows a minimum lot size of 2-1/2 acres. Assuming this area
will ultimately be developed with city water and sewer, the zoning and/or
minimum lot size will have to be increased for the reasons stated above.
In no way are these proposed increases in the minimum lot size suggesting
that no one can subdivide their property. This merely is an attempt to
manage the subdivision of land and preserve the opportunities for either the
city or landowner (developer) to extend utilities in an efficient manner.
Why not allow commercial and industrial development to occur prior
to having city water and sewer available?
First of all, it is important to highlight the size and geographic area of the
urban service boundary. If commercial and industrial development had no
boundaries, there would be no management to this growth pattern.
Development could occur in a scattered/random pattern throughout the entire
urban service district. Secondly, it should be made clear that commercial and
industrial development can occur without city water and sewer. This has
happened along east Highway 10 for years. It is also happening along
Highway 101 between Rogers and Elk River as well as though the City of
Ramsey. However, this type of development can be different than what may
be found in a sewer and water area. If development without water and sewer
was to occur, several questions would need to be asked:
· How difficult will it be for the city or landowners to extend utilities
at a later date given the existing business that may be in place?
· Why would property owners near the edge of the urban service
district have any interest in developing with city water and sewer?
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Memo to City Council and Planning Commission
February 19, 1996
Page 3
· What happens to commercial and industrial property values if
development was to occur throughout the entire urban service
district?
· Are there any long term affects upon the integrity of the entire
commercial and industrial base?
· What is the impact to the tax base if industrial development cannot
happen until city water and sewer is available?
· What are the costs to the city and development community to
redevelop underutilized properties when; and if, water and sewer is
extended?
· Will development without water and sewer compromise long range
planning and transportation needs since these developments may
be perceived as temporary and located outside of the urban core?
· Without water and sewer, will available land be more attractive to
less intense commercial and industrial uses?
· Why would a property owner (developer) request water and sewer if
their development could be constructed without water and sewer?
· Will public safety (i.e. fire and police) be compromised by having
buildings built with provisions for future sprinkling or other public
safety needs when water and sewer finally "gets there"?
· What happens to the existing inventory of commercial and
industrial if development is allowed to continuously extend out
away from the core?
These are just a few of many questions related to this subject.
Unfortunately, the answers are difficult and certainly contain two points of
view. These questions should be explored to fully understand the dynamics
of this issue.
How can commercial and industrial property be utilized prior to
water and sewer being available?
One option to consider is allow interim uses without water and sewer as a
conditional use permit in either the commercial or industrial district. State
Statutes allow cities to issue conditional use permits for interim uses under
certain guidelines. These guidelines may include issuing a permit for a
temporary use for a limited number of years upon which it would expire.
Certainly, attaching a sunset date to uses could present a problem if these
uses are expiring prior to the property having access to water and sewer.
Although the interim use or temporary use seems like a reasonable approach,
there are some pitfalls. The first question that always comes up is "what is
temporary"? Temporary may have several different meanings depending
upon whom you're talking with. For example, I learned the other day that
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Memo to City Council and Planning Commission Page 4
February 19, 1996
School District has had temporary buildings out in front of their high school
for the past 15 years. I've also heard "temporary" discussed as one or two
years; so the point is, it is very difficult to define temporary and even more
difficult to come up with a finite list of uses that could be considered as
temporary. Therefore, from an administration standpoint, the whole concept
of temporary becomes very subjective and difficult to interpret, as well as
enforce.
The most common method used by cities to identify allowable uses prior to
city water and sewer is to allow uses commonly found in a low density
residential or agricultural zoning district. These cities will have properties
that are presently not served with city water and sewer, zoned as a holding
district or, in Elk River's case, Rla or A-1. This method of establishing a
zoning designation, along with a specific list of allowable uses, clearly
identifies how property, whether it be residential, commercial or industrial,
can be used prior to city water and sewer.
The difficulty Elk River has is that a majority of the property is currently
zoned for its ultimate use. Therefore, trying to implement the system
described above may be very difficult given our current situation. The option
Elk River may wish to pursue is amending the zoning ordinance to identify
certain uses such as those found in the A-1 or Rla zoning district, that can be
used on properties zoned commercial and industrial that do not have city
water and sewer.
Can there be a compromise to allow development prior to water and
sewer?
Compromise on this particular issue goes beyond having a property owner or
developer waive their rights to future assessments and guaranteeing hook up
to utilities when available. These arrangements are well intended when
executed, however, for some reason, be it time, change of property owners, or
whatever, inevitably the City Council is confronted with an emotional and
difficult issue. It is at this point that all previous bets are off and reality
takes over. At this point, property owners and City Council are sitting across
the table from one another discussing the actual costs and hardships that
may result.
Summa~
Growth management is a proven method throughout the country that cities
have adopted in order to reduce public costs, managed traffic, preserve
farmland, protect against environmental problems, and simply maintain a
quality of life for the community. Although growth management is viewed as
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Memo to City Council and Planning Commission Page 5
February 19, 1996
a sound public policy, it may also burden property owners along the way.
This issue is very important to the residents of Elk River, development
community, and affected property owners. Therefore, an open discussion and
exchange of information is a good platform to begin formulating decisions to
achieve the goals for the entire City of Elk River.
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Ways to Selectively
Influence Growth
G. Curtis Branscome
The concept of "selective growth" sug-
gests that you can fine tune a local
economy. I disagree. My thesis is that
the local economy is like the national econ-
omy and is not susceptible to fine tuning.
You (:an do some things to heat up the econ-
omy, but you cannot predetermine how "hot"
it is going to become. You can do some
things to cool down the economy, but you
cannot predetermine how cold it is going to
get.
Playing the growth/no-growth game is like
playing Russian roulette. You never know
when you are going to shoot yourself in the -
head. Growth takes on a life of its own, and
developers often do not recognize when the
cycle is over. Overbuilding results, and you
end up with the Denver experience of this de-
cade-millions of square feet of "see
through" office buildings. Conversely, if a
community has the reputation of being a no-
growth area and then changes its mind, the
courting of the development community is a
long and hard process.
The growth/no-growth choice is a political
one, and either choice requires political sup-
port if it is to be maintained. Political support
for either position may change significantly
based on the economy.
l~/l local government that cares to
influence what happens in its community
still has a powerful tool to use in its zoning
powers, g~
Local governments may be able to influ-
ence growth, but they cannot control growth.
It cannot be turned on and off like a spigot.
Regional and national economies have tre-
mendous influence on what happens in local
development--probably more influence than
local government policies have.
G. Curtis Branscomc is city managcr of Decatur, Georgia.
Another valid generalization is that growth
and development do not reduce the local tax
burden. Obviously, putting a large General
Motors plant in a small city makes a differ-
enee. In general, however, densely developed
communities have significant tax burdens.
More services may be generated, and they
may be more sophisticated services than be-
fore local growth, but you usually do not find
lower taxes.
The city of Decatur tries to use an eco-
nomic development program to selectively in-
fluence growth in the city. The program's six
elements include available land, adequate in-
frastrueture, attractive business and develop-
ment environment, skilled labor supply, re-
duction of front-end costs and risks, and.
provision of capital at reasonable cost.
Available Land
It is fairly obvious that if you want growth
and development to occur, you have to have
land available for it. This may appear to be
an uncontrollable eiement. You either have
land or you do not. It is difficult to create
new land and hard to make it disappear.
There are ways to control the availability
of land. The adoption and enforcement of
flood plain ordinances reduce available land
in the flood plains. The acquisition of land for
parks and open space reduces the land avail-
able for development. A few years ago, there
was discussion of residential development of a
fairly steep hillside above a flood plain, devel-
opment that the city determined was not de-
sirable. Fortunately, the city was able to buy
the property at a reasonable price and desig-
nate it as open space. Purchase of land is the
ultimate in land use control, but it usually is
too expensive an option for a local govern-
ment.
The best way that local government has to
influence the availability or' land is through
zoning. Decatur's selective growth strategy is
based on a firm commitment to the preserva-
tion of its residential neighborhoods and a
6 PM August 1988
limitation on the land zoned for commercial
or office use. As a matter of land use policy,
office zoning is limited to the area inside the
Commerce Drive loop around the downtown
section.
At the entrances to Decatur from unincor-
porated DeKalb County on major thorough-
fares like Clairemont Avenue or Scott Boule-
vard, development changes from strip
commercial to residential. In what can be
seen as a modern planning and zoning mir-
acle, the Scott/Clairemont intersection, with
about 25,000 cars per day traveling on both
streets, does not have a single gas station. As
a defensive measure, about 20 years ago gas
stations were removed from the zoning code
as a permitted use in any zoning district .in
Decatur.
Also about 20 years ago, the city commis-
sion decided that some older residential areas
with small single-family houses that were not
being well maintained should be encouraged
to redevelop as high-density single-family
houses--as townhomes or cluster housing.
Large tracts of these single-family houses
were rezoned, and land was made available
for this type of development. Many of those
areas have come back strong as single-family
neighborhoods, and in the past five years the
high-density single-family zoning has been re-
moved from three major neighborhoods.
Work now being done on the future land use
plan is focusing on how much more of this
high-density zoning should be reversed.
Church Street in Decatur was recently
widened to improve access from the interstate
system to downtown Decatur. Before the wid-
erring, this street was primarily residential.
Pressure is now predictably on for strip com-
mercial zoning along this four-lane thorough-
fare. The first rezoning application has been
successfully denied, and the city commission
is pledged to maintaining the residential char-
acter of this street.
A local government that cares to influence
what happens in its community still has a
powerful tool to use in its zoning powers.
Doom and gloom planners and the lawyers
for developers will try to convince you that
the courts have stripped local governments of
any real authority in this area. What the
courts have really done is to pin us down so
that we cannot be arbitrary and capricious. If
we do our homework, do our research, and
prepare our cases to demonstrate the reasons
for our decisions, we still can use zoning pow-
ers effectively.
Another important factor affecting the
availability of land is the development of in-
frastructure. Development is encouraged by
the availability of good roads and adequate
water and sewer service and, conversely, is
discouraged by the lack of these items. These
are powerful tools to decide what land gets
developed, and local government policy can
determine how they are used.
Adequate Infrastructure
Anyone who reads in thc newspapers about
water shortages and sewer tap moratoriums is
familiar with the importance of these utilities.
The primary tool used in the selective growth
strategy in Decatur has been developing or
not developing transportation facilities. The
Commerce Drive loop around downtown De-
catur, completed in 1973, has caused most
major development in the past 10 years to fo-
cus on this street. Tying this into the inter-
state system with the Church Street widening
should give more impetus to this area where
development is seen as being desirable.
On the other hand, Decatur has vigorously
fought the construction of another east-west
thoroughfare through the city for 25 years.
Such a thoroughfare parallel to the railroad
corridor along the southern edge of downtown
would open up the southern part of the down-
town area to significant redevelopment. The
powers that be will never support such a
project, however, until they are convinced
that its impact on residential neighborhoods
really would be minimal.
Attractive Development and
Business Environment
Evcryonc, including hard-nosed developers,
wants to be wanted. A key to business reten-
tion is to let existing businesses know how
much they are appreciated. A key to attract-
ing development is to let developers know
they are welcome.
One problem is that there is a lot of money
to be made in development and it is often lo-
cal government decisions that determine just
how much profit is made. Developers tend to
be politically active and contribute to politi-
cal campaigns. They usually have their pro-
gram together and have the resources and ac-
ce,ss to sell it. Selective development calls for
finding the fine line between making develop-
ers feel welcome and letting them do what
they please. In my experience, most develop-
ers feel welcome only if they are allowed to
do what they please.
Recent newspaper articles have focused on
problems caused by builders' pits in Gwinnett
County and northern Fulton County. Builders
in these areas have been allowed to bury or-
ganic material from the construction site on
the site of the development. This material is
Playing the
growth/no-
growth game is
like playing
Russian
roulette.
not compacted, and it will decay. After a few
years, if the resident is lucky, a gaping hole
appears in his front yard. If he is unlucky, it
shows up under some part of the foundation.
Why should a developer be allowed to cut his
cost and pass that cost off' to some unsuspect-
ing homeowner or to the local government?
Decatur ordinances do not allow builders'
pits. One developer this past year decided he
would do it anyway. City officials told him to
quit. He kept doing it. They took him to
court. The judge fined him $1,000 and told
him the next time he was in court he would
be going to jail. City officials told him to
clean up the mess or the), would take him
back to court. He cleaned up the mess.
Developers are welcome in Decatur, but
they must play by the rules. Some developers
who do not like to play by the rules do not
feel welcome in Decatur.
Skilled Labor Supply
While the availability of skilled labor is im-
portant for economic growth, this area is not
subject to manipulation to influence growth
strategies in the Atlanta metropolitan area.
The region's skilled and highly mobile work
force can get to where the opportunities are.
Financial Inducements
Reducing front-end costs and risks and pro-
viding capital at reasonable cost are areas of
interest in Decatur. We have used these as
part of the selective growth strategy in terms
of low-interest loans to encourage rehabilita-
tion projects the city was interested in and to
get a development commitment for a new
downtown hotel that is an extremely high pri-
ority for the city.
Conclusion
I am not advocating a growth or a no-growth
or a selective growth policy; I am advocating
a rational growth policy. To have a rational
growth policy, you need to deafly articulate
your goals and your vision for the future.
What happens is too important to be left up
to the developers. Managers must be careful
that current development is not building in
costs that communities are going to be paying
for the next 30 years. While I do not believe
that we can fine tune control over the local
economy, I have discussed some tools that
can be used to influence what happens in our
communities.
There may well be a conflict between mak-
ing the maximum possible profit and doing
those things that provide for a good quality of
life for our communities in the future. We
are building the future of our communities.
The developers will be looking after the prof-
its. Who is going to be looking after the
future? PM
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8 PM August 1988
TO:
FROM:
SUBJECT:
ELK RIVER CITY COUNCIL/PLANNING COMMISSION WORKSHOP
CHAMBER OF COMMERCE DEVELOPMENT COMMITI'EE
DEVELOPMENT IN AREAS IMPRISONED BY URBAN SERVICE AREA
BOUNDARIES
SUGGESTIONS:
Commercial/Industrial Uses
1. Allow low-impact development with lot size determined by sewage flow and usable
acreage of lot. Consideration should be given to the type of effluent discharged as
well as the quantity.
2. Minimum one acre sites.
3. Two drainfield sites required - the areas to be determined by flow calculations.
4. Future assessment rights waived with deed covenants or another method so the
waiver is binding to seller and buyer.
Residential Uses
1. Minimum 5 acre parcels with re-development plan.
2. Two drainfield sites.
3. Future assessment rights waived with deed covenants or another method so the
waiver is binding to seller and buyer.
4. Possible PUD and a cluster development to facilitate future re-subdivision.
Note: Under current ordinance, NAPA, Saxon Motors, Furniture & Things Warehouse,
and building occupied by Custom Cutter Grinding could not be built.