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02-11-2003 CC MIN - SPECIAL-JOINTSPECIAL JOINT MEETING OF THE ELK RIVER CITY COUNCIL, ECONOMIC DEVELOPMENT AUTHORITY AND PLANNING COMMISSION HELD AT THE ELK RIVER CITY HALL TUESDAY, FEBRUARY I I, 2003 Council Members Present: Absent: Economic Development Authority Commission Members Present: Absent: Planning Commission Members Present: Absent: Staff Present: Also Present: Mayor IWdinzing, Councilmembers Dietz, Kuester, Motin, and Tveite. Councilmember Dietz left the meedng at 7:25 p.m. None Commissioners Gongoll, Dwyer and Koenig None Chair Pederson, Commissioners Anderson, Jenson, Lemke, Offerman and Ropp granz Director of Planning Michele McPherson, Senior Planner Scott Harl.icker, Planner Chris Leeseberg, Director of Economic Development Catherine Mehelich, Economic Development Assistant Heidi Hall, Recording Secretary Debbie Huebner Anita Duckor, Duckor and Associates Call Meeting To Order Pursuant to due call and notice thereof, the meeting of the Elk River City Council xvas called to order at 6:30 p.m. by Planning Commission Chair Mark Pederson. Introductions Director of Planning Nhchele McPherson introduced Anita Duckor of Duckor and Associates, facilitator for the joint meeting. The Councilmembers and Commissioners introduced themselves at this nme. Presentation - Anita Duckor Ms. Duckor reviewed photographs of the following types of Industrial/Business Park building designs with the group: 1. Class A Office/Business Park/Corporate Headquarters 2. Office Warehouse/Office Showroom 3. Mixed Use industrial/Office/Institutional/Retail 4. Distribution Center 5. Industrial Park Special Joint Meeting M. inutes Page 2 February 11, 2003 Ms. Duckor then discussed the Key Client Requirements by Development Type as sho~vn on Matrix I. EDA Commissioner Dwyer stated that he felt visibility is more important to other types of users than is shown on the matrix. Discussion followed regarding development costs. Ms. McPherson noted that the pdcing shown takes into account all aspects of buitdmg costs and is based on the fee schedule provided by the Uniform Building Code. Mayor Kdinzing stated that one issued that has not been addressed is the unique transportation issues in Elk River and N[N/DOT's future plans. Ms. McPherson reviewed the locations of Industrial and Business Park-zoned property listed on MatrLx 2 as follows: Elk Path Business Center, the Gagne property, Country Crossing, Mulvaney Point, Elk River Business Park, the Brown property, and Cascade Industrial Park. Ms. Duckor discussed each of these sites, which make up the City's land offerings to potential industrial clients. Ms. McPherson then reviewed the City's current building standards for the Industrial and Business Park zoning districts. Planning Commission Chair Mark Pederson noted that the Business Park standards were designed for the higher end user and have been modified to allo~v pre-cast concrete panel construction, which was previously excluded. Ms. Duckor stated that she did not feel there was anything wrong with the Business Park standards, but that the issue is providing a place for Industrial clients to locate. She stated that utilities need to be in place to attract industrial clients, and also the park dedication requirements need to be reviewed and revised. Ms. McPherson stated that the group needs to look at whether or not the City, with its own industrial park, is competing with the market. She stated that industrial clients have needs that are not being met by Elk River; and can the City meet those needs without competing with private developers. Ms. McPherson stated that there are four tasks which need to be accomplished: 1) review the e~sting Business Parks for appropriate zoning, 2) reviexv the current Business Park Standards, including areas guided for Highway Commercial, 3) determine if the e,,dsting regulations are in line with the City's goals, and 4) review the park dedication requirements for the Industrial zoning districts. Planning Commissioner Leo Offerman asked if the Business Park districts which allow retail should be treated separately, since it seems their needs would be different. Ms. McPherson stated that the retail allowed in these districts must complement and support the Business Park, such as copy centers, small restaurants, etc. She noted that in the case of the Elk River Industrial Park, a retail component would likely not be appropriate, since it is in close proximity to Elk River Crossing. Discussion followed regarding outside storage. Ms. Mehelich stated that outside storage is a primary issue. EDA Commissioner Jeff Gongoll asked what the next step would be to allow outdoor storage. Ms. McPherson stated that an ordinance would need to be drafted which would include criteria for the number of square feet of outdoor storage allowed and any screening requirements. Comm2ssioner Gongoll stated that he felt the number one issue is the lack of industrial-zoned property, and the second issue is the fact that the uses are very heavily restricted. He stated that the City needs to find other areas where industrial uses can be allowed. Commissioner Gongoll stated they also need to look at allowing outdoor storage. Chair Pederson stated that he feels the City needs look at more mLxed-use areas, and to zone Light Industrial and Business Park uses separately. He suggested that the Gagne property would be a good area for mLxed industrial uses. Councilmember Motin stated that a buffer from residential area needs to be maintained. Ms. Mehelich noted that the warehouse issue also should be looked at. Special Joint Meeting Minutes Page 3 February 11, 2003 Planning Commissioner Dana Anderson asked if the park dedication fee is the only fee under discussion. Ms. McPherson stated that other fees such as water, sewer and land use application fees are also required, but that the park dedication fee is the fee which is often waived by cities. Ms. Duckor stated that developers are against park dedication fees, but that SAC and *VAC fees are generally accepted as a part of doing business. Mayor Klinzing asked what the attraction was for industrial development in Big Lake. Ms. Duckor stated that land is being offered for free. She also noted that elected officials often are present in negotiations with potential clients. Discussion followed regarding the possibility of industrial development in the gravel mining district when mining is completed. Councilrnember Tveite noted that there is an area near County Road 33 which may be available in as litde as five years. Councilmember Motto stated that the slowed economy would impact development. Ms. Duckor stated that the City needs to maximize what it currently has to offer. She feels that the park dedication fee needs to be reviewed, and full infrastructure needs to be provided (sewer and water). Mayor I4&inzing stated that she is aware that other cities build the infrastructure and also give away land to attract industrial development. She stated that the City needs to look at what the barriers are for both the city-owned land and private land. She stated that the Highway 169 corridor should be to be looked at, as well. Ms. Duckor stated that the City needs to keep supporting industrial development, but they also need to offer another client base, in order to provide a healthy mix of industrial development. Mayor IGinzing asked if partnerships with private landowners could be developed. Ms. Duckor stated that the problem is that private developers usually have their own contractors. Ms. Mehelich stated that the City is currently exploring ways to develop better partnerships with private developers. Mayor IClinzing stated that she feels the Planning Commission, City Council and the EDA need to get involved in talking to property owners to t-md out what the issues are. Ms. Duckor concurred. Ms. McPherson stated that the Planning Commission could discuss some general parameters at their March workshop meeting. EDA Commissioner Dwyer noted that if design standards are too high, tenants are not willing to pay the rent that would be required to recover the construction costs. Councilmember Motin noted that having good design standards should lock down the price of land. It was the consensus of the group that representatives of the City Council, EDA and Planning Commission should meet with Industrial/Business Park land owners to discuss issues of Concern. There being no further business, Chair Pederson adjourned the meeting of the Elk River City Council at 8 p.m. Respectfully submitted, Debbie Huebner Special Joint Meeting Minutes February 11, 2003 Recording Secretary Page 4