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5.10. SR 06-03-1996~ty of iver TO: FROM: DATE: SUBJECT: Item 5.10. MEMORANDUM Planning Commission Steven B. Ach, City Planner~ June 6, 1996 Discuss Ordinance Amendment Regarding Commercial and Industrial Development Prior to City Water and Sewer Background On May 20, 1996, the City Council followed the Planning Commission's recommendation and tabled indefinitely a request by the City of Elk River to amend the zoning ordinance, allowing commercial and industrial development within the urban service area prior to city water and sewer. This issue was also discussed by the City Council, Planning Commission and Chamber of Commerce representatives earlier this year. The issue at hand is a fundamental component of the recently adopted comprehensive plan to effectively manage the growth of the community. The growth management strategy is to allow development with the incremental extension of city water and sewer. Proposed Trucking Businesses Along 171st Avenue Over the past several months, the City has been meeting with LeFebvre and Morrell Trucking to discuss the possibility of developing two parcels along 171st to accommodate the relocation of both these trucking firms. The location which these trucking businesses would like to relocate is within the City's urban service boundary. However, since city utilities are not immediately available, the current ordinance would not allow development at this time. In order to accommodate LeFebvre and Morrell in relocating to 171st Avenue, the current ordinance would need to be amended to allow development within the urban service district prior to city water and sewer. Another option would be to amend the zoning ordinance in such a way to allow development of the two trucking operations without opening the entire urban service area 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425 Memo to Mayor and City Council Page 2 June 6, 1996 to development prior to water and sewer. Staff is currently in the process of researching options for the council to consider that would accommodate the two trucking businesses while preserving the integrity of the current ordinance. Analysis The issue of allowing development prior to water and sewer is a comprehensive matter which goes beyond prepaying trunk assessments or requiring hook up to utilities when ultimately available. To broaden the Council's understanding of this issue, I have attached a couple of articles on growth management. This is an important issue to become familiar with because so many communities are adopting this practice and it is receiving increased attention as communities experience issues associated with growth. Planning Commission Recommendation The Planning Commission will not have the opportunity to revise their "official" recommendation on the ordinance due to the inability to publish a legal notice for this issue. However, the Commission did discuss the issue at the May 28th meeting (see attached memo and draft minutes). The Planning Commission may have a representative at the Council meeting to answer questions. Conclusion Staff will be prepared to discuss this topic further and answer questions for the City Council at Monday night's meeting. If there are any questions prior to the meeting, please feel free to contact me at 441-4902. A public notice has also been sent to the Star News to be published in the paper on June 5th, advertising for the City Council's public hearing to consider this ordinance amendment on June 17th. That evening staff will have available for the Council to consider an ordinance amendment that will be tailored based on Council's direction from Monday night's meeting. s:XcouncilXoa96-xxx.doc Planning Commission Minutes May 28, 1996 DRAFT DRA Staff report by Steve Ach. Over the past several months, the City has been meeting with LeFebvre and Morrell Trucking to discuss the possibility of developing two parcels of land along 171st to accommodate the relocation of both of the trucking operations. The location of which the two trucking businesses would like to relocate is within the City's urban service boundary. However, since city utilities are not immediately available, the current ordinance would not allow development. In order fo allow this development to occur, the City Council will need to either amend the city ordinance allowing development prior to city water and sewer, or make some other special provision for LeFebvre and Morrell Trucking without amending the entire ordinance. Even though the Planning Commission has requested that the ordinance amendment be tabled indefinitely, State Statutes have provisions allowing the City Council to fake action following the elapse of 60 days from the date of reference of the amendment without a report by the Planning Commission. Commissioner Minton commented that the Planning Commission has discussed this and the main concern with Commissioner Minton was that the City Attorney was not able to design a firm commitment on the part of the builders to hook up water and sewer. If that can not be done Commissioner Minton would consider this a difficult thing to do. Commissioner Minton stated he does not want to see these two businesses move some place else. Commissioner Minton sees them moving from their current place to 171sf and eventually going someplace else within the City where there won't be sewer and wafer. Chair Dillon stated it is not the intention of the two business not to hook up to sewer and water. Commissioner Minton stated these businesses are land intensive businesses which have a very high assessment rate. Chair Dillon stated the trucking businesses are looking for the proximity to Highway 10. We have discussed this before to not allow development is to not allow the people who own the property to develop it if they chose. Chair Dillon stated discussion was made regarding this issue at a joint Planning Commission and City Council meeting and the Council knows where the Planning Commission is. CONSULTANTS IN PLANNING, ZONING, DEVELOPMENT ECONOMICS AND LANDSCAPE ARCHITECTURE DEFINING GROWTH MANAGEMENT Growth Management is a term that we,all use, but rarely define. Webster says that manage is 'to handle, direct, or control in action or use." Growth is "development from a simpler to a more complex stage." Hence, ,growth man- agement can be defined as directing or controlling urban devel- opment from simpler to more complex stages. Sounds simple, doesn't it? But whose values determine the direction? In the end, perhaps growth management is best understood as direct- ing the location, timing, and nature of development desired by a community's citizens in a manner which protects valuable natural, built, social, and financial assets. Growth management is not a new idea. For example, suburban Brooklyn Park, MN developed a growth management system back in thc late 1960's that became a model for other commu- nities in the region. The system divides thc community into blocks about one mile square in size. Each block is assigned a target development release date. Thc "tri,~,,cr" for releasing each block is a decline in thc number of vacant residential lots to a two-year supply. This time lag allows the city to provide water and sewer service and to upgrade roads. The planned construction of a new major highway has precipi- tated a reevaluation of the Brooklyn Park system and how it should apply rtl the new development the highway will gener- ate. After reviewing several alternatives, including elimination of the block release system, Camiros has recommended con- tinuing the timed release of blocks of land for housing, but shift- ing scheduling priorities and designating the highway corridor as a single block to be reteased upon highway completion. "This allows us to pretty much keep the current system which has a high level of credibility," says Deputy Community Development Director Scott Clark. It is within the context of growth suburbs like Brooklyn Park that growth management is most frequently mentioned. How- ever, growth management can be applied to inner cities and other fully developed communities. Camiros Principal Ioyce Levine IN THIS ISSUE... Protecting the Future 2 On the Drawing Board 3 Planning for Transit Oriented Development 4 Staff News 5 TI~e BrookJyn Park, MN growth management program has served as a ~odei since the Jare 1900's. 411 S. Wells St., Chicago, IL 1,O{~07 (312! 9'2'2-t 211 22 E. Washington St.. Indianaoolis, IN 46204 (31D 263-6967 217 S. Hamilton St.. Madison. WI 53703 ~0,'~1 25'~-53f~0 5547 Grand Ave. South. Minneapolis. MN 55419 1612) 827-7501 CAM I I~.OS Growth Mana§ement - continued from page 1 is currently working on a growth management model for use in mature cities. The model focuses on urban evolution and takes into account sunk costs such as existing infrastructure. "Every community manages some kind of growth, even if it occurs as redevelop- ment,'' says Levine. Through its work in communities such as Brooklyn Park; Urbandale, IA; Schaumburg, IL; and Aurora, CO, Camiros has learned some important lessons about growth management: It forces community decision-makers to set clear priorities and understand the consequences of their decisions. Its potential problems--inflated land values, liti- gation, and economic exclusion---can be overcome through careful analysis, good planning and zon- ing, and an understanding of the local culture. It requires effective planning tools, including re- alistic growth projections, meaningful community goals and development policies, an understanding of public finance, capital-improvement programs, intergovernmental coordination, and analyses of impacts on the community's environment, fi- nances and cash flow. 13-58 THE LAW OF ZONING AND PLANNING § 13.11 policy realm of selecting projects that address proper developmentM purposes. § 13.11 Urban Infill Strategies Cities can offer a variety of ~eehniques and incentives for stimulat- ing development of infill land. This term refers to vacant or under. utilized parcels ha otherwise built-up urban areas.~ These sites can result from poor access to public facilities, physical or environmental limitations, or lack of market attractiveness., Communities where active growth controls and impact fees are applicable to urban frin~ areas offe~-'~g~h_her market potential for infilling than those Without _growth guidane~ or with ~tensive preservieing.~ Inf'fll strategies generally incorporate a package of techniques that fit the particular needs of each community. Techniques for en- couraging infiLling include reducing delays in project review, en- core'aging performance-based code requirements, and comprehensive review of zoning regulations.4 Site-speeiRe tech- niques haelude tax abatement, density bonuses, downzoning, and correcting infrastructure problems. S ~ See Ileal Estate Research CorPOration, InfilI Development Strate. gie. z I (1982). See also Smart, Bowles, Garland, Porter, & Start, Making In~il Projecu Work 3 (1985'). This study of implemented infill projects utilized a genera] ~lefinition for infill site characteristics: 'limited in size to a few acres and located in an area where the surrounding deveJopment is at least 15 to 20 years old. The bulk of the property has · been vacant or grossly underutilized for at least five years, so that the cost o~' new improvements wil] far e~ceed the value of any existing {rnprovement~ These sites may range from abandoned inner-city property to highly valuable land in any older built- up suburb or small town.' Id. ' Id. at 1, 5-10. 3 Id. at 8. '~ Id. at 12-13. s See id. at 14-15. Rural economic development has changed from the smokestack chasing of the '70s, or the industrial emphasis of the '80s, to an integrated and balanced approach for the '90s. Economic development is not something you meet to discuss on the third Tuesday of each month--it is a commu- nity attitude. Communities in greater Minnesota are facing many changes and Challenges in this decade, literally forcing new approaches to economic development. Demographics are changing and populations are shifting. Advancements in technology are revolutionizing just about every aspect of our lives. Our community identifies are threatened as schools combine, businesses restructure, and regional centers emerge. Problems abound related to labor force, housing, business development and struggling families. Youth are leaving the country,- side. Community leaders are looking for answers that strengthen their commu- nit), and pro~Sde hope for the furore through effective economic and community development. A healthy economic and community development attitude is a reality when the entire community is focused on a common vision for the future that balances economic potential, concern for people and social concerns, and the practice of good stewardship of natural resources. This balanced approach is often referred to as svatainable commu- nity development. Sustainable community development Historically, we have considered the various aspects of our community planning in isolation from one another. Economic development is carried out by one group. Human service activities Vision are handled by another..And others, such as emSronmental action groups, function at ),et another level. The sustainable community develop- ment approach brings all sectors together at the beginning of the planning process to define an overall vision, or communit7 attitude, from which specific plans are launched. The advantages of this method are man)'. It promotes civic responsibility among all community members. It engages and trains new leaders. Conflict is mini- mized as participants focus on building consensus around one x-ision. Emphasis on the wise use of the community's limited resources spurs creativity throughout the process. So how does sustainable community development planning work? It is really very simple. · Involve representatives £rom all sectors of the community in the design of t.he overall community vision for the future. Include people from business, local government, finance, education, churches, citizens group, youth, etc. Bring them together to answer the question: 'What do we want our community to be like in 10 or 20 years?" Give them an opportunity to discuss what community values they want to preserve, in terms of people, and economic and natural resources. · Develop and revise community plans according to that ~4sion. Ask: "Does this activity move our community closer to our vision for the future? Does it uphold what we value?" · When projects and activities are completed, take time to celebrate success and to acknowledge the volunteers that helped. Identify and learn from your mistakes. When community and economic development begins with a vision that focuses on how economics, human resources and the environment can complement and build on one another, development activities are impacted in several ways. First, business development efforts build on existing resources-local business people, banking and financial assets and parmership opportunities. The needs of the labor force and 8 I MINNESOTA CITIES / APRIL 1996 Development Creating Vision Celebrate commanee Stake Evaluate Holders Commu=~7 coo, e~ COMMUNITY V~o~-~ DEVELOPMENT ~=p~m~t PROCESS W~,~blish Plato Vision Strategies Goals Resource Task Problm~s Forces Planning families in the region are considered, along with sensim4ty to the community's overall environmental concerns. Barriers to development, such as inadequate housing and shortages of a qualified labor force can be more easiiy addressed within this context. Lack of housing, for example, can be addressed by the whole community, spurring more innovative and creative solutions. Labor force development can be tackled as a partnership between business and education, with a focus on · sustaining the overall community. Second, support for children and families can become a priority that crosses all sectors, from education, social serx~ce and religious groups, to business and ban'king. When the community focuses on its children as the leaders, business owners and labor force of the future, they become a primary resource that must be pro- tected, educated and nourished. The stresses facing today's families, then, become a community problem of high priority. Youth involvement in commu- nity actixfties can provide a training ground for good citizenship and build the ownership that will engage the next generation in sustaining and growing the community. Third, stewardship for the community's natural resources can become everyone's responsibility, with a cross section of people developing and enforcing plans and guidelines. When all viewpoints are considered early in the planning process, conflicts between development and environmental protection can be reduced, and solutions successfully achieved that preserve the quality, of life in the communit7. Initiative fund support The Central Minnesota Initiative Fund is a regional foundation based in Litfle Fails, Minnesota. Its mission is to strengthen communities, families and the labor force. Through its business financing programs, nonprofit grants, training and special initiatives, it has invested over $16 million in the 14 county region of Central Minnesota. The Initiative Fund assists communities with local development efforts through its Community Partnership Program. In this program, a combination of leader- ship training and grant funding is provided over a two-year period to help community leaders with visioning and planning that guide development activities. Here are some examples: · The Waverly Area Visionary Empow- erment (WAVE) Project is concen- trating on enhancing the quality of life for citizens. New community signs have been erected, a local newsletter is in publication, and downtown improvements are under wa),. They are now planning a historical museum honoring Hubert H. Humphrey. · The Hewitt Revitalization Group is working in five areas: supporting What do growth and development really mean? PAULWILSON According to our current mindset, economic development is usually assumed to mean the same thing as economic growth; the result is expanding resources. But is that assumption necessarily correct? Growth means an increase in size or number. Development, on the other hand, means bringing something to a fuller or better state. A society can certainly grow without developing. Consider economist Herman Daly's example of a steady-state library. The stock of boo 'ks is constant but not static. As a book wears out or becomes obsolete, it's replaced by a newer or better one. The quantity of boo 'ks does not grow, and the quali~' of the library actually improves. The library develops without growing. Sustainable development of human culture means improving the quality of human life while living within the carrying capacity of supporting ecosystems. What is sustained is not a rate of growth, but rather a level of physical resource use. What is developed is the capacity to convert those physical resources into improved goods and services for satis ,fying human needs, without degrading the supporting systems. Ir Reprinted by permission from. *¢'~-glng Direction: 'l'ow~rd SUStmnable Culture,' cop,~t J~uary 1996 b.v Nm'tMo~ R~lx~ . A N~ of ~i~ A'orthza~ Ar~ MINNESOTA CITIES / APRIL 1996 9 businesses and economic develop- ment~ community projects, cultural activities, housing development, and youth involvement This community of under 300/s emphasizing an intergenerational approach, with senior citizens and youth leading the effort. Renovation of an old school building will bring together govern- ment offices, historical preservation, cultural enhancements, and access to telecommunications. $ The cornmunities of Onanaia, Isle, and the Mille Lacs Band of Ojibwe are working with area schools and businesses to improve applied technology education opportunities for students and adults in the area. Local dtizens are involved through community meetings. The Cenr. ral Minnesota Initiative Fund believes that local people are the key resource in identifying needs, solving problems, and creating positive change for communities and families. The energy and commitment from local people has enabled the Fund to leverage significant financial support from The McKnight Foundation, the Department of Trade and Economic Development, and a variety of other foundations and public and private donors that benefit the region.. Accepting the challenge There are tremendous opportunities for community leaders to accept the challenges ahead and to direct the changes we are facing toward common goals for Minnesota communities. The quality of life we hold so dear in rural Minnesota can be preserved and strengthened as we work together with a positive attitude for community and economic development, l' Kathy Gaalswyk is executive director of the Central Min,,esota Initiative Fund, a regional foundation based in Little Falls which serves the 14 counties of Genital Minnesota. The Initiative F.u.nd focuses on strengthening commu- roues, families and the labor force. It has distributed over $16 m~llion in business development loans and nonprofit grants since its ~nception in 1986. For more information, call (320) 632-9255. 10 · May 30, 1996 Mayor Hank Duitsman City of Elk River 13065 Orono Parkway P.O. Box 490 Elk River, MN 55330 Elk RiverArea Chamber of Commerce Dear Mayor Duitsman and City Council Members: The Elk River Area Chamber of Commerce is committed to the economic development of Elk River. The retention and expansion of existing businesses is as important to those efforts as the recruitment of new business and industry. Experience shows us most business growth occurs from a community's existing businesses; it is a more difficult and, in many cases, costly process to "woo and win" a new business to locate here. There are presently two local companies that want to relocate their trucking operations within Elk River: LeFebvre & Sons, Inc. and Morrell Transfer, Inc. They are both "home grown", family-owned businesses that between them provide jobs to over 100 employees, as well as providing the tax base so important to the economic vitality of our community. We feel sure you are all aware of the competition that exists in the market with surrounding communities vying for businesses such as these two that Elk River is presently fortunate to have. Big Lake or other cities may have made attractive offers, but it is our understanding Morrell and LeFebvre prefer to keep their businesses here. We know there are challenges in meeting the requests of these companies related to the framework of the Growth Management Plan and the new Urban Service District where the property proposed for the relocations lies. While we respect both the issues and the challenges, the purpose of this letter is to encourage the staff and council to work with these two companies in all ways possible to enable them staying in Elk River. On behalf of the Chamber's Board of Directors, thank you for your attention to this request. If we can be of any assistance, please call me at 441-3110. Sincerely, Jackie F. Schuelein Executive Vice President 509 Highway 10 · Elk River, Minnesota 55330-1415 · (612) 441-3110 "Building a Better Community Together"