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HomeMy WebLinkAbout2.b. Discussion of Comprehensive Planning IssuesEXECUTIVE SUMMARY City CouncilWork Session Meeting:June 13, 2016 AGENDA ITEM:Discussion of Comprehensive AGENDA SECTION: Planning IssuesDiscussion PREPARED BY:Kim Lindquist, Community Development AGENDA NO. 2.b. Director,Kyle Klatt, Senior Planner ATTACHMENTS:Maps, Application MaterialsAPPROVED BY: ddj RECOMMENDED ACTION: Discussion Item SUMMARY Staff is embarking on the latest update to the Comprehensive Plan, required by the Metropolitan Council. The first neighborhood meeting occurred on May 25 and focused on whether public utilities should be planned for future extension into the transitional residential and rural residential areas in the North Central portion of the City. The second meeting was June 1, and presented the idea of future development in the southeast portion of the City and what would be appropriate land uses. A small task force comprised of SE residents and property owners will be set up to provide some options to the larger neighborhood, Planning Commission and City Council. At the City Council meeting on May 9, SKB Environmental and their partner Enerkem made a presentation about a municipal solid waste facility and gasification/refinery to be located in the northeast portion of the City, outside of existing Heavy Industrial lands. While the first two processes will prompt community input and decisions will evolve over the next several months as further input is obtained, the normal decision making process for SKB is not the same. There are few neighbors in the area to state objections or profess support. The lack of public engagement doesn’t mean that there isn’t an important land use issue associated with the decision and also future implications associated with the project. There are two critical issues which are broader than the site plan related items such as noise, traffic, or aesthetics. These relate to expansion of the Heavy Industrial zoning and extension of the General Industrial Guide Plan designation and putting the site into the MUSA, potentially prematurely. A broader decision-making process for the northeast industrial area of Rosemount should be considered. DISCUSSION Presently there are three industrial land uses: Business Park, Light Industrial and General Industrial. The zoning associated with the three land uses are listed as the following: (2030 Comprehensive Plan, Chapter 7 Land Use pg. 70-72) Guided: Business Park Zonin g: Appropriate zoning is Business Park. Limited Secondary Zoning is General Commercial near intersections of major roads with Light Industrial adjacent to industrial planned areas. Guided: Light Industrial Zoning: Appropriate zoning is Light Industrial. Limited Secondary Zoning is Business Park, Commercial, or residential planned areas; General Industrial adjacent to general industrial planned area. Guided: General Industrial Zoning: Appropriate zoning is General Industrial. Limited Secondary Zoning is Light Industrial adjacent to other land uses, Heavy Industrial shall be provided sparingly and only to allow the development or improvement of the four heavy industrial businesses. “HeavyIndustrialzoning is limitedto developed areas of the fourheavy industrialbusinesses. The City doesnot desire to expand the number of heavy industrial business beyond four, but it does desire the four businesses to redevelop and expand as needed to stay economically viable. If any of the four heavy industrial businesses desire to expand its Heavy Industrialzoning district, a Planned Unit Development master planfor the business expansion must first be approved. The Planning Unit Development master planshall concentrate the heaviest uses to the center of the site; provide a transition of the lesser intensity uses to the perimeter of the site, and ensure the efficient use of the existing heavy industrial property or prevent premature expansion of the zoning district. The rezoning of the additional property toHeavy Industrialshall only occur immediately prior to an expansion of thebusinessper its approved Planned Unit Development master plan.” The four Heavy Industrial uses as the time of the 2030 Comprehensive Plan adoptions were Flint Hills Refinery, CF Industries, Continental Nitrogen, and Dixie Petro Chemical. The Plan also states: “Rosemount has become increasingly concerned about its image within the region due to the heavy industrial uses on the east side of Rosemount and the proliferation of low tax base industrial sites requiring large amounts of outdoor storage, such as truck terminals and junk car parts providers. Within the last five years, the City has changed its general industrial zoning to limit the amount of outdoor storage and require a minimum building size and has implemented a heavy industrial zone that will allow the existing heavy industrial uses to invest in their businesses but discourage a proliferation of new heavy industrial uses.” (Chapter 4 Economic Development p25) The excerpts from the adopted Comprehensive Plan are provided as it gets at the crux of the land use issue associated with the SKB proposal and surrounding neighborhood. The issue of expanding Heavy Industrial uses beyond the 2030 Plan is similar tothe discussion regarding FHR and the impact of that use on the surrounding development pattern in the last Comprehensive Plan update. At that time, staff spent a lot of time discussing the landholdings of FHR and the ability to provide residential development opportunities in the central portion of the City. Initially, FHR appeared to support some residential, perhaps rural residential along Akron Avenue, within and adjacent to their landholdings. Later, FHR’s position wasto not allow any residential development east of Akron Avenue. The City indicated they could not support such restrictions in land use; it was taking development opportunities from other property owners. The City ultimately guided some of the land east of Akron Avenue for residential but recognized that the impact of the refinery use would not promote residential closer to the plant. The City also indicated that not all of the FHR landholdings would be reguided to Heavy Industrial to allow expansion of the refinery use, which would further restrict development options in the area. The Heavy Industrial designation is “boxed” by Rich Valley th Blvd to the west, Hwy 52 to the east, the future alignment of 140Street to the south, and the City boundary to the north. There is a portion of Heavy Industrial zoned located east of Hwy 52 currently owned by FHR which was previously the Continental Nitrogen site. It was intentional that the Heavy Industrial zoning would be contained within the general industrial area “boxed” by the above perimeters with the landfill on the east. This would allow less impactful development to radiate from the General Industrial land use area to provide a transition to the more public areas along County Road 42 and the east end of Hwy 55 with the open space and river valley beyond. Similarly, staff has indicated to other potential users that any Heavy Industrial uses would need to stay within 2 the properties designated for that type of use. FHR is proposing an ammonia plant, and had previously requested that the plant be located on General Industrial zoned land. Staff directed them to the appropriate zoning district, Heavy Industrial so that the amount of HI lands would not be expanded. From a development standpoint, Heavy Industrial is often the least desirable land use. The zoning district indicates that the site should be large to allow noxious uses to be set back from public views and contain significant screening. Purpose andIntent: The purpose of the HI heavy industrial district is to provide for the establishment of uses that refine and store combustible or explosive materials or blend, store, and distribute chemicals or fertilizer. Such uses may include large unscreened outdoor structures or equipment that cannot be integrated into the building design or large scale outdoor storage. These uses typically generate noise, odor, vibration, illumination, or particulate that may be offensive or obnoxious to adjacent land uses. As a result of these characteristics, these uses require large areas and setbacks as well as significant screening and are not compatible with residential uses or high concentrations of people. Associated accessory, conditional, or interim uses are subject to the site and building standards of the GI district, except as noted below In the case of Rosemount, FHR is the largest heavy industrial business, and while paying a significant amount in taxes, due to immense landholdings, much of the development in Rosemount is not taxed because it is equipment rather than building. Additionally, the City Council and Port Authority have been interested in business attraction to increase tax base and employment within the community. The most recent inquiries from brokers and business owners wishing to relocate into Rosemount are industrial users such as another car salvage yard, a semi-truck repair and storage facility and a construction yard. In every instance the agents have indicated they thought these land uses were permitted due to the existing businesses in the community. In the case of the salvage yard, they wanted to locate west of SKB landfill. They felt the entire area was low in value due to the surrounding uses and were surprised the City would not allow a salvage yard on the site. Expansion of the General Industrial land uses coupled with Heavy Industrial zoning, will further this perception and will negatively impact the City’s ability to attract quality industrial and business park uses. Staff has also experienced comments from residential developers about the negative impact associated with views to the refinery from residentially zoned property. They have indicated issues associated with the views from residential lots and also noted that driving past the refinery to the neighborhood “makes a hard sell to mothers with kids.” The interest in tightening down the heavy industrial land to the borders of the 2030 plan are to reduce the negative impacts to other desired land uses in the community. While residential land uses would not be immediately adjacent to residential development, a 150’ smokestack and other refinery equipment will be visible for some distance. Significant truck traffic will be drawn to the area, affecting numerous city and county streets, reducing desirability. Residential development is important to the City to increase population which will drive additional commercial development, desired by existing and future residents. In January the City Council approved a PUD Concept for the western 1/3 of the SKB site, east of the landfill. At the time the property was designated for Light Industrial and Business Park. The request was to create a campus type of development relating to recycling and reuse-the Resolution of approval specifically stated that “future development on the site…will be consistent with General Industrial or Light Industrial zoning standards and will meet the ordinance requirement for those districts.” Staff supported the proposal to General Industrial because of the recycling use on the site. However, there are numerous conditions associated with that land use, including using 10% of the land area for building. The current application of recycling plant and equipment repair reflect a site plan contrary to many of the ordinance standards. The site plan contains smaller, metal buildings with gravel parking and less landscaping with most of the trees 3 removed. Since the initial submittal some of the items have been addressed however the plan still does not comply with many of the ordinance criteria. Certainly, if the Council would approve the modified land use and zoning the ordinance high standards need to be enforced. Staff believes there are numerous site planning issues associated with placement of the MSW recycling facility and refinery in this portion of the City. There are issues about screening, landscaping, paving, views, noise, odors, significant truck traffic and infrastructure wear and tear. While some of these items can be mitigated to some extent, the concept of increasing the Heavy Industrial designation, broadening its scope will be more impactful. Perhaps the concept of re-guiding the area should be included as part of the larger update to the City’s Comprehensive Plan, where a more public vetting can occur rather than through a planning application process in a portion of the community where the future residents aren’t yet available to convey their thoughts. UTILITIES/MUSA EXPANSION Presently the site is adjacent to the landfill site. The landfill and lands to the west are located within the 2020 MUSA. The site and further to the east and south are located in the 2030 MUSA. Extension of utilities would be needed to permit urban development, which has cost implications for the City. Presently, the only site for development in the area is the first phase of the SKB development site. The Enerkem project would be the second phase and according to the presentation would need approximately 1 million gallons of water a day. They have indicated that they are investigating using a private well on the site, and could use a holding tank until public utilities become available. There has also been some discussion about using effluent from the Empire Treatment plant for some of the cooling water needs. The question of whether the site should be developed prior to installation of public utilities is something the City wrestles with often. In many areas of the City, property owners would like to develop their land, usually residential, but have to wait until the services are brought to their property. In some cases the City had extended the services and required the property owner to pay the cost. In other cases the City has extended the services and assessed benefiting properties. Recently, property owners on the west side of Bacardi Avenue were assessed when public services were installed to facilitate the Bella Vista residential development. Ironically, the eastern portion of Bella Vista cannot develop without access to utilities and a public road through the McMenomy property. Other private property owners are also waiting for the utilities to be extended through the McMenomy site before they are able to develop their property to urban standards. So, in some cases they must wait until orderly sequential development occurs. And in some cases, the City has told developers they would have to pay the cost of utility installation since they are “leapfrogging” over land designated for development. In the case of the SKB site, the Comprehensive Plan did not anticipate utilities until later, after other more eastern properties had developed. The SKB site would have benefitted from the GRE site development as would the residential properties south of County Road 42. The SKB service is planned as an extension from the GRE utility system. It is estimated that a significant financial investment is necessary to bring sanitary sewer to the SKB site because it would include the GRE project with extension. Based upon a preliminary analysis, the sanitary sewer extension to GRE would be approximately $ 4 million. The further extension to SKB would beanother $1.5 million. Unfortunately, the SKB property does not develop as intensely as that proposed for the GRE site, which was estimated at almost 1,000,000 square feet, which means that creation of a TIF District for the site would not produce enough revenue tosignificantly offset utility costs. Given the development in the area surrounding the SKB site, sanitary sewer extension does not appear to provide much benefit to other sites. If development was phased consistent with the recent east side utility study, which is complementary to the MUSA staging plan, the cost of sanitary sewer would be lessoned. It is due to 4 the fact that the SKB site relies on the extension of the sewer, and installation of lift station, to the GRE site which creates a $6.5 million cost. In talking to the City Engineer, utilities could be installed directly to the SKB site without installation to County Road 42. However, this would require installation of two lift stations, which is undesirable from a capital and maintenance cost perspective. It is not recommended. Water access for the first phase of the SKB project is available at the site. The concern is raised with the second phase, should the Council approve the Enerkem project. The amount of water anticipated for its operation is extensive, and would deplete the“excess water” available for other development anticipated in the community. SKB had indicated that they could install a private well for their operations but staff has two concerns. One, this area is designated for public utilities and therefore private service investments should not be encouraged. It may be economically difficult to convert the site to public utilities when they became available. The other issue relates to the discussions about water use in the Metropolitan area and the depletion of groundwater aquifers. For example, there has been a lot of discussion and research to assess groundwater replenishment and using surface water (river water) for local needs. There have been some discussions about requiring cities to install surface water treatment plants rather than ground water treatment plants so the aquifers aren’t negatively affected. A surface water plant is significantly more expensive than the groundwater treatment facilities. Staff is concerned that cities will have new regulations placed upon them, but private businesses with private systems would not have the same regulatory standards. For example, FHR uses private wells which more than double the amount of water used by the entire City. Unfortunately, the City is unable to regulate their use and its impacts on the communities’ system. It appears that future regulations or initiatives will be implemented at the local or regional governmental level and it is unclear there will be any regulations applied to private users. Staff is concerned about having other heavy water users on private systems due to the future regulatory uncertainty and potential impacts on the rest of the community. Staff has discussed with the Council provision of services for other projects with the cost front-ended from the City’s Core Funds. Repayment would occur through payment of charges at the time of benefiting property development. However, that means the City will be carrying costs until fully reimbursed. Due to the shape of the City, long on the east/west axis, and due to impediments to orderly development; Umore and FHR landholdings, we are potentially facing large capital investments for infrastructure in other areas of the community. The City has discussed installation of utilities for business park development along the east side of Umore. It is estimated the sewer and water costs would approximate $3.6 million, which would be reimbursed over time, as additional development occurs. Staff is working with Umore, DEED, and Greater MSP on a proposal for a new user. Umore also continues to market the northeastern 160 acres of their complex. The City has indicated we would be partners in infrastructure installation when a user comes forward. However, the Core Funds cannot front end the amount of utility installation necessary for all the potential projects mentioned above. Prioritization of financial resources needs to take place. CONCLUSION This memorandum is to raise several policy issues associated with the Enerkem/SKB proposal introduced to the Council at a previous worksession. There is not presently an application for this phase of site development, only the first phase, immediately east of the landfill site. However, given the amount of discussion with various agencies and elected officials about the Enerkem project, staff felt it was important to bring some of the policy issues to the forefront. The update to the City’s Comprehensive Plan has just begun. There are three small area planning areas that will be investigated over the next year. These plans will include several public comment opportunities. Staff 5 believes that a more robust public process should also be facilitated should the Council wish to entertain the SKB/Enerkem project. Reguiding of the property to a General Industrial land use and the needed rezoning to Heavy Industrial, is a departure from the currently adopted plan implementation strategy for development on the east side. Further, staff would anticipate having a more substantive discussion with the Council about the provision of utilities for future development on the east side. We have discussed several areas of potential development; all which require significant utility investment. A prioritization for utilizing financial resources should be devised. A policy discussion regarding availability of utilities, who pays, and the concept of allowing private systems when the long term plan for public infrastructure should also be reviewed. These discussions will provide the basis for goals and objectives within the Comprehensive Plan and will assist staff and the Planning Commission in carrying out the priorities of the City Council. 6 .mxd elopment\\Planning File\\SKBCompPlanAmendment-15-45 CPA Path: T:\\GIS\\City\\Maps\\Departmental Maps\\CommunityDev elopment\\Planning File\\SKBZoningAmendment-15-44 RZ.mxd Path: T:\\GIS\\City\\Maps\\Departmental Maps\\CommunityDev A nq = \ \O W =o�W=p=An d. �000ad li lull � \ IfI N 00 � / O / 1 / III �m M IL' M s 11