HomeMy WebLinkAbout2.A. Commercial Frontage Road c T T
EXECUTIVE SUMMARY
CITY COUNCIL
City Council Work Session Date: November 14, 2012
AGENDA ITEM: Commercial Frontage Road AGENDA SECTION:
Discussion
PREPARED BY: Kim Lindquist, Community Development AGENDA NO.
Director, Andy Brotzler, City Engineer
2,
ATTACHMENTS: Aerial with Road Overlay APPROVED BY:
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RECOMMENDED ACTION: Information Item
ISSUE
In August, City staff discussed with the Council the idea of allowing a private developer to construct
public and private utilities as a part of the development process. The developer would install all
supporting infrastructure west of Business Parkway,although it was intended that a public road and
public utilities would be extended east of Business Parkway,intersecting with Biscayne Avenue in the
future.
More recently, staff was informed that the business looking at the property east of Business Parkway is
concerned about future access for the property.This is the same access issue raised several years ago
when a big box user was investigating the site. Ultimately all the eastern sites would be access by a
frontage road that would run along the northern property line, adjacent to the existing single family
homes. Initially it was not intended that this road, 149th Street,would be constructed until additional
development occurred. However, that thinking has recently changed and is the subject of this
discussion.
A gas station indicated interest in Warren Israelson's property, east of Business Parkway until they
were informed that in the future,Dakota County would be modifying the Business Parkway/County
Road 42 intersection to a 3/4 intersection.What that means is that the intersection would not allow left
turn movements out of Business Parkway unto County Road 42. The change is consistent with the
County Road 42 corridor study adopted by the County.The property owner indicated that businesses
are uncomfortable about the access change when there is no guarantee for the timing of construction
of 149th Street.This means heading east from the commercial center would be prohibited and
therefore less attractive for the consumer.Additionally, this could result in commercial traffic
funneling through the northern neighborhood, as people look for an eastward route.
Staff is investigating the ability to construct 149th Street now, or in the near future, to accommodate
and hopefully accelerate future commercial development.At the Council meeting on November 5,
2012,the Council approved designation of 149th Street as an MSA road. Staff will be submitting the
request which would allow the City to use the MSA allocation for construction. It would be possible
to finance the public utility work through existing City utility funds.
One issue is that there are two land owners who are impacted by the potential road construction.The
first,Warren Israelson,has potential development and has an incentive to provide right of way free of
charge.The other owner,to the east,is TCF Bank who got the land after a turnback from the
previous owner. They aren't interested in encumbering the property further as their goal is to market
the property and sell.This leads staff to believe that TCF would not agree to dedication of land and
also special assessment for public infrastructure construction; the typical way to finance sewer and
road improvements.
Because of the difficulty in obtaining property owner agreement, the uncertainty about timing for
County Road 42 access modifications, and the Council's strong desire to attract commercial
development east of Hwy 3, staff believes this may be a time when public assistance for economic
development is considered. It appears unlikely that private development would initiate the entire
frontage road construction given the existing landowners and the continuing soft commercial market.
Staff believes construction will actually spur development by decreasing the financial investment
needed for development,and reducing uncertainty, similar to what occurred when Akron Avenue was
built. In this instance staff is questioning whether it makes sense of use MSA funds for all road
construction and subsidize the utility work also.
The idea of using MSA funds for road construction that will provide an economic development
incentive is not new although rarely if ever used in this community. Staff does not take this
recommendation lightly and in the future each case must be weighed against the goals of the Council
and community and the ability for financing and equity. In this instance,additional encouragement
from the City may be needed to draw commercial to the site. The access issues associated with the site
are beyond the scope of the City to address and creative solutions are necessary to prompt near term
growth. It is of course hoped that the increase in residential development in the east will continue to
foster more commercial development along County Road 42,an increased population brings increased
demands.
CONCLUSION
At this time staff is requesting direction from the Council regarding financing of 149th Street,a
commercial frontage road that would link Business Parkway and Biscayne Avenue. Staff is
suggesting that MSA funds could be used to construct the road and utility funds to complete
necessary public utilities to make the properties more receptive to development. This would be
predicated on receiving the right of way at no cost from the adjoining property owners as they
would receive benefit due to the road construction.
If the Council is agreeable to this solution, after staff is notified that the proposed road has been
designated an MSA route,the Council will be asked to allow the City Engineer to begin design of
the infrastructure. It would be expected that the next Council action needed would occur around the
first of the year,2013.
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A 701 Xenia Avenue South,Suite 300 IMPROVEMENT PROJECT
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INFRASTRUCTURE ENGINEERING PLANNING CONSTRUCTION MINNESOTA /
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