5. EDSR 06-11-2007
wer
MEMORANDUM
TO: Economic Development Authority
FROM: Jeremy Barnhart, Planning Manager9~
DATE: June 11, 2007
SUBJECT: Gateway Business Park
At their meeting on April 9t~, 2007, the EDA discussed the Gateway project and provided direction
to staff to develop three conceptual layouts for discussion. This memo discusses those options.
Direction. The consensus of the EDA was that the park should be more of a retail component.
Some members of the EDA felt that the plan should include a big box type commercial, similar to
the Wal-Mart/ Home Depot shopping center.
Assumptions. In the development of the plans, staff made the following assumptions:
1. Access to the site would be largely limited to a fizll access off of 171St, as an extension of
Ulysses street.
2. There is potential for a right in access off of Hwy 10, if the City can convince MnDOT that
the closing of several individual accesses balances out an increase of turning movements to
one location.
3. There is potential for right-in access off of 171St for a small portion of the Powell piece
(northwest corner of the site).
4. The gas main will not be moved or relocated.
5. City would follow its policy that wetlands can not be filled to create a building pad, although
wetlands could be filled for parking lots.
6. It is advantageous and preferred to mitigate as much as possible, wetlands on site, rather
than purchasing land elsewhere.
7. The success of the project relies on land owned by other parties and the assembly of these
large parcels maximizes the usable land in the area.
The three options are described below. Additionally, Staff has put together a spreadsheet using
rough numbers for purposes of comparing potential costs only. This spreadsheet is attached.
Option A. Option A includes a variety of lot sizes, including 3 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 Hwy 10. The smaller commercial lots are served via a `backage' road between Hwy 10 and
Ulysses. Option A has the greatest impact to existing wetlands, and a big portion of property west of
C:\Documents and Settingsljbarnhart\Desktop\Gateway\EDA memo RE Gateway 6-11-07.doc
Ulysses is used to mitigate these wetlands. An additional 11 acres of wetlands would need to be
mitigated elsewhere. Option A requires the mitigation of 12.14 acres (24.3 acres)
Option B. Option B shows 2 big box retail sites immediately adjacent to Hwy 10, sized 19-28 acres.
This plan provides more land for industrial sites, although any of the lots on any of the plans could
conceivable be converted to industrial uses, based on size. The plan also utilizes aright-in off of
Hwy 10. The plan has slightly reduced impact to the wetlands, requiring mitigation of approximately
9.64 acres (19.3 acres).
Option C. Option C includes small ancillary commercial lot in the NW corner, two big box lots
along Hwy 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, leaving very little
benefit to the property.
The EDA is asked to confirm the assumptions, confirm the desired end use is retail commercial, with
anchor tenants (possibly big boxes). Additionally, should the EDA desire a land use that is
inconsistent from that recommended by the market study, how long is it appropriate to wait before
shifting to alternative land uses.
The EDA is also asked for direction to begin discussion with adjacent property owners toward
purchase of their property.
C:\Documents and Settings\jbamhart\Desktop\GatewaylEDA memo RE Gateway 6-11-07.doc
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Message
Barnhart, Jeremy
From: Dan.Tveite@wellsfargo.com
Sent: Friday, June 08, 2007 10:58 AM
To: Barnhart, Jeremy
Cc: Mehelich, Catherine; Clark, Scott; Jeff@elkriverchamber.org
Subject: RE: Gateway concepts
My thoughts from yesterday's conversation:
Page 1 of 2
• Ideally, we look at this parcel in a comprehensive fashion incorporating city owned property and privately
owned property
. We need to reach out to the private land owners to verify their plans and to see if they are willing to work
with us. Given the long-term local presence and standing in the community of these owners, we need to
extend as much courtesy as possible.
• We should keep open the option of buying the private properties if the owners are amenable to selling at a
reasonable price.
• Even though the market survey wasn't optimistic about commercial/retail along highway 10, I still think the
highway offers an asset; maybe not today but down the road (i.e., 5 years) so t would want to keep an eye
towards this use fronting the highway.
• With the above parameters, my preference of the 3 options is B with the revision from "big box" to
"commercial" to allow ourselves as much flexibility to address potential users as possible. I also like this
option because of the industrial presence away from the highway and near the RDF plant.
. My statements are made under the assumption that we don't have any immediate pressure (either a
definitive proposal or even an inkling of possible developments) to bring this land online and thus should
keep our options as open as possible. Until we have some serious interest or a sense that the
development pressure is increasing, I wouldn't get the site prepared (i.e., bringing infrastructure into the
parcel) - again, I want to keep as much flexibility as possible.
Hope this helps.
I will be out of the office the afternoon of June 8 with no access to email or voicemail.
Thanks a lot!
Dan Tveite
Enterprise Sourcing, Contracts & Procurement
Phone - 612-316-1735
Fax - 612-316-3521
This email (including attachments) is covered by the Electronic Communications Privacy Act, l8 U.S.C. §§ 2510-2521, is
confidential and may be legally privileged. If you are not the intended recipient, you are hereby notified that any retention,
dissemination, distribution, or copying of this communication is strictly prohibited. Please reply to the sender that you have
received the message in error, then delete it. Thank you.
-----Original Message-----
From: Barnhart, Jeremy [mailto:jbarnhart@ci.elk-river.mn.us]
Sent: Thursday, June 07, 2007 9:18 AM
To: Tveite, Dan
Cc: Mehelich, Catherine; Clark, Scott
Subject: Gateway concepts
6/8/2007
MEETING OF THE ELK RIVER
ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, APRIL 9, 2007
Members Present: President Gongoll, Commissioners, Dwyer, Farber, Zerwas (5:35 p.m.),
Klinzing, Motin, and Tveite (5:40 p.m.)
Members Absent: None
Staff Present: Director of Economic Development Catherine Mehelich, Assistant
Director of Economic Development Heidi Steinmetz, Community
Development Director Scott Clark, City Engineer Terry Maurer, Planning
Manager Jeremy Barnhart, Finance Director Tim Simon, and City Clerk
Tina Allard
1. 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.
2. Consider Agenda
MOVED BY COMMISSIONER FARBER AND SECONDED BY
COMMISSIONER KLINZING TO APPROVE THE APRIL 9, 2007 EDA
AGENDA. MOTION CARRIED 5-0.
Consider Consent Agenda
MOVED BY COMMISSIONER KLINZING AND SECONDED BY
COMMISSIONER MOTIN TO APPROVE THE CONSENT AGENDA AS
FOLLOWS:
3.1. MARCH 12, 2007 MINUTES
3.2. CHECK REGISTERS
3.3. BALANCE SHEET
3.4. REVENUE/EXPENDITURE REPORT
MOTION CARRIED 5-0.
Open Mike
No one appeared for Open Mike.
Ms. Mehelich stated TIF District 15 has reached its term and the EDA needs to decertify the
District in accordance with statutory requirements.
Economic Development Authority Minutes
April 9, 2007
Page 2
MOVED BY COMMISSIONER DWYER AND SECONDED BY
COMMISSIONER MOTIN TO ADOPT RESOLUTION 07-01 APPROVING THE
DECERTIFICATION OF TAX INCREMENT FINANCING DISTRICT N0.15
WITHIN DEVELOPMENT DISTRICT NO. 1 IN THE CITY OF ELK RIVER.
MOTION CARRIED 5-0.
6. Other Business
Mr. Clark noted that information on a proposed road alignment for TH 10 from a
Mn/DOT representative was personal opinions of that person and not what is being
proposed by Mn/DOT.
Adiourn to Worksession for Discussion on Gateway Business Center Development
Grant Martin, Maxfield Research, Inc., provided an explanation of the study his firm
completed for the Gateway Business Park. He reviewed the methodology used by his
company. He stated the Park has limited market use for office and retail based on access and
visibility to TH 10. Mr. Martin stated he found industrial demand for the site. He
recommended 40 acres dedicated to owner-occupied industrial space and 20 acres for multi-
tenant lease space. He stated the focus of the study was for the city-owned property.
Mr. Barnhart stated he is looking for direction on the type of land uses the EDA would like
to see for the Park.
Commissioner Mortin stated the access issues for this Park are not any different then the
Wal-mart location.
Mr. Clark stated there could be some retail in the Park but questioned how much the EDA
would like to see.
Commissioner Gongoll stated the surrounding properties need to be considered for
development of the Park.
Commissioner Klinzing concurred. She stated people shouldn't have to go through industrial
properties to get to commercial properties.
Commissioner Tveite stated if the EDA wants retail it may need to wait until there is more
of a demand.
Commissioner Farber concurred.
Commissioner Dwyer concurred. He questioned if the train station was considered in the
study.
Mr. Barnhart stated he has spoken to a couple of the property owners and they are looking
to put in commercial/retail.
Commissioner Gongoll stated the consensus of the EDA is to see more of a retail
component in the Park. He stated he would like to see a higher level of architectural
standards, some high-tech infrastructure, and a different name for the Park.
Economic Development Authority Minutes Page 3
April 9, 2007
Ms. Mehelich questioned the types of retail the EDA would like to see.
Commissioners Moon and Klinzing stated they would like to see a big box retail area similar
to the Wal-mart area in Elk River.
Commissioner Gongoll stated he could see it as a small boutique neighborhood center.
Mr. Barnhart created a sample drawing of the land uses the EDA is requesting.
Mr. Maurer stated there will be some constraints to the site due to wetlands and gas lines.
Ms. Mehelich questioned how Maxfield Research, Inc., considered the viability of developing
retail in this proximity from the rail station.
Mr. Martin stated the key feature they considered for the rail station is walkability. He stated
if a site can be walkable, you will keep people there to utilize the retail; but once they are in
the car they can go arrywhere. He stated the city shouldn't count on rail as a draw for retail.
Commissioner Motin disagreed with the walkability component. He stated people coming
home at the end of night don't walk and shop and they don't have time in the morning to
shop. He stated commuters plan their trips to the rail station to within five minutes of an
available train. He stated it is not walkable from the rail station to the Gateway Business
Park.
Ms. Mehelich stated people catching the train will come and go in short time frames limited
to the train's arrival. She questioned the support of retail businesses for the non-commuter
times throughout the day. She noted initially there will be limited train trips from the station.
Mr. Clark noted there will be competition with Elk River Station and their retail
development.
Ms. Mehelich questioned if the study area scope was broadened to include adjacent private
parcels for development, would that improve the market opportunity for retail.
Mr. Martin stated it would but the city would need to improve the access to the southern
portion of the site.
Adjournment
The meeting of the Elk River Economic Development Authority adjourned at 6:30 p.m.
Tina Allard
City Clerk
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