7.4. SR 04-29-1996r'ity of
Item 7.4.
'ver
TO:
FROM:
DATE:
SUBJECT:
MEMORANDUM
Mayor & City Council f~/~
IIZ/
Pat Klaers, City Administr~6r
April 29, 1996 /
Trucking Business Prospects for 171st
Avenue
At the 4/15/96 City Council CIP Worksession, it was indicated that the
improvement of 171st Avenue, along with the Highway 10
acceleration/deceleration lanes, was a high priority and could be
accomplished in 1996 if one or two trucking businesses were to locate along
this street. This project will end up being in the $450,000 range and 171st
Avenue has now been added to our MSA system to allow the use of municipal
state aid funds for this project. The long range plan is to have 171st Avenue
signalized and connected on the east side of the railroad tracks, up north
through the "Snake Trail" to County Road 12.
At a 4/23/96 staff meeting with the owners/representatives of the two
trucking firms in question, this city commitment to improving 171st Avenue
was clearly conveyed. In the discussion of the Elk River proposal and
Highway 10 transportation issues, it was stated what incentives other
communities are offering these trucking firms to locate in their city. Staff
was requested to get a response from the City Council as to what else could
be offered from the city as financial incentives to entice the companies to
locate along 171st Avenue in Elk River. Suggestions from the trucking firms
for these "what else" items include:
Free SAC and WAC fees when utilities become available...the city
has only offered free SAC/WAC fees once in recent memory and this
was over ten years ago for a school.
· Reduced or no future trunk sewer and water assessments
· It was understood by the trucking firms that the city would pay for
the signal and not charge out any expenses to any landowners.
· It was understood that the city would pay landowners a fair market
price for right-of-way needed for any street project.
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425
Whether or not the city would pay fair market price for any balance
of the land not used by the trucking firms...I indicated that the city
would be interested on the north side of 171st as this could be a
future industrial lot, but had less interest in the south side of 171st
as this was wetlands and a treed area.
A septic system request whereby the businesses would not have to
construct a septic system, but the septic water/waste would go into a
tank. The city is then being asked to finance the disposal of the
waste (mostly truck washing water) into the treatment plant...This
saves the businesses the capital outlay expenses for a septic system,
but puts the city in the difficult position of not charging for the
disposal into the treatment plant.
The major issue, and one that the city has very little control over, is the
traffic patterns in this vicinity along Highway 10 and the timing of the future
signal. It was noted that no new jobs are being created in either operation
and that both firms are simply relocating. Accordingly, no TIF assistance is
available.
One of the trucking firms is in more of a hurry to do something in 1996 than
the other firm and the timeframe for the permitting process was reviewed. It
was noted that this is a 60-90 day process and includes a conditional use
permit. Discussion took place regarding the current ordinance that does not
allow development in the urban district without sewer and water being
available and the fact that this issue is currently under review. It should be
noted that the Planning Commission took no action and tabled the ordinance
issue at its 4/23/96 meeting so that it can be evaluated during a worksession.
I indicated to both trucking firms that I will give them a verbal response as
to the City Council comments and position on their requests by Friday, May
3, 1996. At this time it is hard for staff to recommend providing anything
else for the trucking firms other than the improvement of 171st Avenue.
This is not as much as what other communities are offering, but it is not far
from the other offers.
council:trkgfrms