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HomeMy WebLinkAbout9.b. General Industrial District to Heavy Industrial District Rezoning, 06-46-ZAAGENDA ITEM: Case 06 -46 -ZA General Industrial District to Heavy Industrial District Rezoning AGENDA SECTION: New business PREPARED BY: Jason Lindahl, A.I C.P Planner AGENDA NO. ATTACHMENTS: Rezoning Ordinance, 9 -26 -06 PC Minutes, 9 -26 -06 PC Staff Report, Comments from CF Industries and Flint Hills Resources, Rezoning Map, Letter to Joan Schneider and Charles Koehnen of 12255 Rich Valley Boulevard regarding Notice of the Public Hearing APPROVED BY: RECOMMENDED ACTION: Motion to approve an Ordinance rezoning portions of the properties owned by CF Industries, Continental Nitrogen, Dixie Petro Chemical, and Flint Hills Resources from GI General Industrial to HI Heavy Industrial as illustrated on the attached map, subject to the following condition 1. City Council Approval of an Ordinance Amendment Creating the New HI Heavy Industrial Districts. 4 ROSEMOUNT City Council Meeting Date October 17, 2006 SUMMARY Applicant Property Owner(s) Location Area in Acres Comp Guide Plan Desig: Current Zoning Proposed Zoning Planning Commission Action: Packet page 180 of 207 CITY COUNCIL EXECUTIVE SUMMARY City of Rosemount Selected Parcels North of 140 Street, South of 120`" Street, East of Blaine Avenue (County Road 71) and West of the Mississippi River 1,521 Acres GI General industrial GI General Industrial HI Heavy Industrial Recommended Approval 5 on September 26, 2006 This item was initiated by staff for the purpose of rezoning selected parcels from GI General Industrial to 1-II Heavy Industrial in coordination with the industrial distncts text amendment process The selected properties are located north of 140 Street, south of 120` Street, east of Blaine Avenue (County Road 71) and west of the Mississippi River These properties were selected based on the criteria outlined by the Planning Commission which requires the property be currently zoned GI General Industrial and contain an existing building or structure conducting a Heavy Manufacturing use his memo will review the proposed rezoning to insure it is (1) consistent with the goals and policies of the Comprehensive Plan, (2) compatible with surrounding present and future land uses, (3) will bang the subject properties closer to compliance with the zoning ordinance, and (4) will not intensify the use of the property placing additional burden on the City's utilities PLANNING COMMISSION ACTION The Planning Commission held a pubhc hearing to review this item during their September 26, 2006 meeting Minutes of that meeting are attached for your reference During the meeting, representatives from CF Industries, Flint Hills Resources and Technical Erectors presented comments to the Comnussion. CF Industries reiterated their desire to have their entire property rezoned to Heavy Industrial Similarly Flint Hills requested that additional portions of their property be rezoned to Heavy Industrial. Mr. George Psihos of Technical Erector, Inc stated his desire to meet with staff to discuss the best use of his property and if it could also be rezoned to Heavy Industrial Chairman Messner thanked the representatives of these businesses for their continued interest and involvement in this process but explained that it was the Commission's intention to primarily discuss land currently zoned industrial, which doesn't preclude any property owner from requesting a rezoning at a later date. In addition to the comments from these businesses, Joan Schneider and Charles Koehnen of 12255 Rich Valley Boulevard protested the Commission holding the public hearing based on fact that they had not received a nonce of the meeting in accordance with State law and City policy Staff explained that the normal noufication procedure was followed for this public hearing Staff offered to review the files with Ms. Schneider the next day to determine why she had not received a notice of the meeting. Ms Schneider rejected this offer and demanded that staff determine why she had not received a notice before continuing the meeting. Chairman Messner noted their objection but stated that the Comission would continue with the public hearing and directed staff to review the files to determine if the property had been on the notification hst If not, a detertrunauon would be made whether the Commission should hold a second public hearing The next day it was determined that Ms Schneider and Mr Koehnen did not receive a notice of the meeting because their property is located outside of the required 350 foot notification area (see attached letter). BACKGROUND The Planning Comnussion held public hearings to review the associated text amendments during their July and August meetings. At the conclusion of the August hearing, the Commission unanunously recommended the City Council approve these text amendments In coordinanon with the text amendment, staff recommends rezoning selected properties from GI General Industrial to HI Heavy Industrial (see attached map). These properties were selected for rezoning based on the cntena outlined by the Commission dunng the text amendment process, which include: 1. The subject property is currently zoned GI General Industrial. 2. The subject property contains an existing building or structure used for Heavy Manufacturing Applying these criteria, staff recommends rezoning selected portions of property owned by CF Industries, Continental Nitrogen, Dixie Petro Chemical, and Flint Hills resources from GI General Industrial to HI Heavy Industrial While a portion of Flint Hills property does not contain an existing building or structure used for Heavy Manufacturing, staff finds that this land should also be rezoned to Heavy Industrial to provide adequate buffer area for the refinery's flame towers as well as allows a reasonable future expansion area Packet page 181 of 207 2 The boundaries for this rezoning are consistent with those that were reviewed by the Planning Commission during the August and September meetings with the exception of the inclusion of the CF Industries barge terminal area. While the barge terminal area is located within the Floodplain of the Mississippi River, staffs finds it plays an essential role in the operation of the CF Industries and warrants inclusion in the Heavy Industrial district. Both CF Industries and Flint Hills have requested additional portions of their property be rezoned Heavy Industnal as compared to the staff recommendation. With CF Industries they would like the property immediately east of the arca proposed for Heavy Industrial to also be rezoned Heavy Industrial. Currently this area is zoned General Industrial but is guided in the approved Comprehensive Plan as Agriculture. The designation of Agriculture was reaffirmed through the 42/52 land use study conducted by the City in 2004 and approved by the Council in 2005 The designation of Agriculture is found in the 2020 Comprehensive Plan adopted in 2000 and also shows up in the 2000 Update adopted in 1993. However, both documents recognized that portions of this area are zoned Industrial It appears from old files that the City never fully implemented the General Industrial recommendations of the 2020 Comprehensive Plan in that there is an inconsistency between the General Industrial zoning district boundaries and the General Industnal land use designations Staff expects to begin the process of implementation, along with the parcel by parcel review of the area that recently received Comprehensive Plan Amendment approval along County Road 42, later this year based upon direction of the Council It is expected that at that time there will be a policy discussion relating to the eastern property owned by CF Industries. Flint Hills has expressed interest in the City zoning property in the southern portion of their property, adjoining the railroad to Heavy Industrial so it is consistent with the remaining portion of their property. There are two issues associated with this request. In one case, the property is zoned General Industrial but is not currently guided General Industnal. Although, through the 42/52 Land Use study, the land use recommendation is for General Industrial Because this area was not part of the Comprehensive Plan amendment (north of 140 south of the rail line) the land use designation remain Agriculture We have consistently shown this area for rezoning and have published and noticed this change It is up to the City Council whether they choose to rezone this property during the current process or wait until the property owner requests a Comprehensive Plan amendment. The other area of interest by Flint Hills is just east of the railroad, north of the 140"' Street area In that case the property is not currently zoned or guided General Industnal, although it is designated General Industrial in the 42/52 Land Use Study As the Council is aware, the 42/52 Land Use Study made land use recommendanons for all properties within the City outside of the previous MUSA. The intention was to show what is intended for future growth and land use although it was not intended that the entire Plan would be implemented immediately but over time. This second area was not part of the notification process for rezoning and would need to be rezoned during a separate process. While other property owners within the existing GI District have verbally expressed a desire to be rezoned Heavy Industrial, no official requests have been filed In discussion with these property owners staff found these requests did not meet the original selection criteria outlined by the Planning Commission and, in some cases, would also require a Comprehensive Plan amendment As a result, these requests were not part of this rezoning proposal Packet page 182 of 207 Rezoning When considering this or any other rezoning request, there are four key criteria for the City to weigh. These criteria and staff's findings for each are outlined below. Based on this information, staff recommends approval of the rezoning proposal For your reference, State Statute requires rezonings from residential to commercial or industrial be approved by a two- thirds majority of the City Council All other rezonings require only a majonty vote for approval, which is what is required in this case. Consistency with Comprehensive Plan. Staff finds the proposed rezoning is consistent with the goals and policies of the Comprehensive Plan With the exception of the discussion above all the subject properties found to the attached map are zoned and guided GI General Industrial Rezoning these properties from GI General Industrial to the new HI Heavy Industrial district simply moves these properties from one industrial zoning district to another. According to the Comprehensive Plan, land guided General Industrial is uniquely suited for industrial uses that require large sites and extenor storage and are served by arterial, rail, and barge transportation systems By comparison, 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 charactensncs, these uses require large areas and setbacks as well as significant screening and are not compatible with residential uses or high concentrations of people Policies outlined in the Comprehensive Plan relevant to rezoning the subject properties to HI Heavy Industrial include: 1 Require that planning for industrial developments minimize environmental impacts, land use conflicts, and visual accessibility from the surrounding properties and public streets and highways. 2. Maximize land use compatibility by requiring larger setbacks, buffering, screening, and landscaping at the edges of industrial areas and along major streets and highways. Compatibility with Present and Future Land Uses. Based upon the Comprehensive Land Use Plan and the 42/52 Comprehensive Lind Use Plan, staff finds rezoning the selected properties from GI General Industrial to HI Heavy Industrial will be compatible with surrounding present and future land uses. With the exception of the western border of the Flint Hills site, the properties designated to be rezoned Heavy Industrial are surrounded by properties zoned and /or guided for General Industrial use This is consistent with the amended GI General Industrial zoning district which calls for the General Industrial District to be the preferred transition district between the Heavy Industrial District and adjacent land uses In addition, it should be noted that while the land west of the Flint Hills site is zoned and guided AG Agricultural, Flint Hills owns this land and is on record that this area is to serve as a long -term buffer between the refinery site and the remainder of the community. Packet page 183 of 207 Conformance with New Zoning Standards The key challenge in creating the HI Heavy Industrial district was to balance the need to create a new zoning district that would accommodate the existing refining and chemical processmg industries with the City policy to raise the performance standards and upgrade new developments coming into the community It should be noted that some aspects of the properties designated to be rezoned Heavy Industrial are currently non- conforming and may not comply with all of the new performance standards found within the HI District However, it is staffs belief that none of the uses will be made nonconforming by either the Heavy Industrial or General Industrial text amendments. As a result, staff finds rezoning these properties from GI General Industrial to HI Heavy Industrial will bring them closer to compliance with the use and performance standards of the new ordinance as well as implements the City's policies regarding industnal development Under Minnesota law, existing non conforming developments at the time of the adoption of these changes are "grandfathered in This means that the structures associated with the industrial uses may be repaired, replaced, restored, maintained or improved "as is." However, any enlargements or expansions must meet the new performance standards (setbacks, screening, building materials and the like). Should the non-conforming structure be destroyed by fire or other peril, even by more than 50 of the market value, it may be rebuilt in its current condition if a building permit is applied for within 180 days. Availability of Utilities. Of the four businesses designated to be rezoned from GI General Industnal to I-II I Ieavy Industrial, only Continental Nitrogen is located within the current (2010) Metropolitan Urban Service Area (MUSA). While three of the four (Continental Nitrogen, Dixie Petro Chemical, and Flint Hills) have City water, none of the businesses have City sewer. To data, only Flint Hills has requested City sewer services As a result, staff finds that rezoning these properties from GI General Industnal to HI Heavy Industrial will not intensify these uses placing additional burden on the City's utilities CONCLUSION Staff recommends rezoning portions of the properties owned by CF Industries, Continental Nitrogen, Dixie Petro Chemical, and Flint Hills Resources from GI General Industrial to HI Heavy Industrial This recommendation is based on the finding that the subject properties meet the rezoning selection cntena outlined by the Planning Commission during the Industrial districts text amendment process which requires the property be currently zoned GI General Industrial and contain an existing building or structure conducting a Heavy Manufactunng use This recommendation is also based on the following four findings (1) that the rezoning is consistent with the goals and policies of the Comprehensive Plan, (2) is compatible with surrounding present and future land uses, (3) will bring the subject properties closer to compliance with the zoning ordinance, and (4) will not intensify the use of the property placing additional burden on the City's utilities Both CF Industries and Flint Hills have requested land outside staff's recommendation be rezoned Heavy Industrial These requests fail to meet the Planning Commission's original selection criteria and conflict with either the official Land Use Plan or the 42/52 Land Use Plan Given these inconsistencies, these areas were not included in either staff's recommendation or the official public notice. Subject to Council direction, staff expects to begin the process of Comp Plan implementation, along with the parcel by parcel review of the area that recently received Comprehensive Plan Amendment approval along Hwy 42, later this year It is expected that at that time there will be a policy discussion relating to the eastern property owned by CF Industries. Packet page 184 of 207 AN ORDINANCE AMENDING SECTION 11 -3 -2 OF THE ROSEMOUNT CITY CODE REZONING PORTIONS OF THE PROPERTIES OWNED BY CF INDUSTRIES, CONTINENTIAL NITROGEN, DIXIE PETRO CHEMICAL, AND FLINT HILLS RESOURCE FROM GI GENERAL INDUSTRIAL TO HI HEAVY INDUSTRIAL THE CITY COUNCIL OF THE CITY OF ROSEMOUNT, MINNESOTA, ORDAINS AS FOLLOWS: Section 1 Ordinance B, adopted September 19, 1989, entitled "City of Rosemount Zoning Ordinance," Section 11 -3 -2 (Zoning Districts Map) is hereby amended to rezone portions of the properues owned by CF Industries, Continental Nitrogen, Dixie Petro Chemical, and Fhnt I-hlls Resources from GI General Industrial to HI Heavy Industnal that are generally located north of 140 Street, south of the City's Northern Boundary, east of Blaine Avenue (County Road 71) and west of the Mississippi River, within the City of Rosemount as depicted on the map attached hereto and incorporated herein as Exhibit A Section 2. The Zoning Map of the City of Rosemount, referred to and described in said Ordinance No. B as that certain map entitled "Zoning Map of the City of Rosemount," shall not be republished to show the aforesaid rezoning, but the Clerk shall appropriately mark the said zoning map on file m the Clerk's office for the purpose of indicating the rezoning hereinabove provided for in this Ordinance and all of the notation references and other information shown thereon are hereby incorporated by reference and made part of this Ordinance. Section 3. This ordinance shall be effective immediately upon its passage and publication according to law. ENACIED AND ORDAINED into an Ordinance this 17 day of October, 2006 CITY OF ROSEMOUNT ATTEST: Amy Domeier, City Clerk Published in the Rosemount Town Pages this Packet page 185 of 207 City of Rosemount Ordinance No. B -173 Wilham H. Droste, Mayor day of 2006. EXCERPT FROM MINUTES PLANNING COMMISSION REGULAR MEETING SEPTEMBER 26, 2006 5.b. 06 -46 -ZA General Industrial District to Heavy Industrial District Rezoning. Mr. Lindahl presented this item This item was initiated by staff for the purpose of rezoning selected parcels from GI General Industrial to HI Heavy Industrial in coordination with the industrial districts text amendment process The selected properties are located north of 1 Street, south of 120" Street, east of Blame Avenue (County Road 71) and west of the Mississippi River Mr. Lindahl explained that the Planning Commission previously held public hearings to review the text amendments during then July and August meetings At the conclusion of the August hearing, the Commission unanimously recommended the City Council approve these text amendments. In coordination with the text amendment, staff now recommends rezoning selected properties from GI General Industrial to HI Heavy Industrial Mr Lindahl showed the Commission the selected properties on the map included in the staff report. The boundaries for this rezoning are consistent with those that were reviewed by the Planning Commission during the August meeting with the exception of the inclusion of the CF Industries barge ternunal area. While the barge terminal area is located within the Floodplain of the Mississippi River, staffs finds it plays an essential role m the operation of the CF Industries and warrants inclusion in the Heavy Industrial district. A copy of a letter from Joe and Julie Simones was provided to the Commission for their information. It contained concerns with .respect to land use change, which was not part of this public hearing. Chairperson Messner askedJg or "eommenE ifF f n e Commission. There were none. Chairperson Messner opened the public heating at 8:18 p m. Joan Schneider, 12255 Rich Valley Boulevard, Rosemount, Minnesota 55068, with husband, Charles Koehnen, approached the Comttiission and protested the hearing She stated she was not given any notice of the zoning changes or text amendments and their property is located across the road from Koch Refinery. They found out about the heanng by the pubhc notice that was published in the Rosemount Town Pages. She quoted City ordinance and objected to the proceedings because in her opinion no bona fide attempt was made to provide her nonce Mr. Lindahl responded that staff published the pubhc notice and mailed notices to residents within the area. Mr. Koehnen stated that this was not the first time they had not been noticed on City proceedings. Chairperson Messner stated that their objection was noted. Ms. Schneider stated that they were objecting to the public hearing and the proceeding could not continue unless proof was provided that a bona fide attempt was made to provide notice Chairperson Messner requested to review what ordinance Ms. Schneider was referring to Mr. Lindahl stated that staff followed procedure m providing notice. Ms. Lindquist reviewed the ordinance and stated there was a bona fide attempt. Ms Schneider rephed that she wanted her objection to the public heanng to go on record and she would follow up on any future violations of giving proper notices. Packet page 187 of 207 EXCERPT FROM MINUTES PLANNING COMMISSION REGULAR MEETING SEPTEMBER 26, 2006 Chairperson Messner stated again that her objection was on the record and duly noted He also stated that he did not have any records in front of him of what notices were provided Ms Schneider demanded that Mr. Lindahl retrieve the file from his office Chairperson Messner stated that if in fact a bona fide attempt had not been made, then the public hearmg would have to be rescheduled. In the meantime, the Commission intended to continue with the current pubhc heanng. Commission Schultz asked Ms. Schnieder if she had received any notices in the past, and Ms. Schnieder replied that she had but not for many years. It was later determined that Ms. Schnieder and Mr. Koehnen did not receive a public notice of the meeting because their property is outside the required 350 foot notification area John Holland, Flint Hills Resources, 12555 Clark Road, Rosemount, Minnesota, approached the Commission to express his thanks for the text amendments'and rezoning going to City Council together and explained the reason for his company's desire to have their property zoned heavy industrial with respect to future expansion plans. Todd Phelps, Leonard Street Deinard, 150 South Fifth Street, Suite 2300, Minneapolis, Minnesota 55402, representing CF Industries, Inc., together with Torn Mollet of CF Industries, Inc approached the Commission and requested that the entire CF Industries campus be rezoned heavy industrial and presented a diagram t6 support his request Mr. Phelps stated that Large portions of land would be unuseable if not rezoned heavy industrial. He also stated that at the City Council work session, it was indicated that all of the CF land would be rezoned heavy industnal, but this current hearing showed only part of the land being rezoned Mr Phelps requested that the rezoning procedure be set aside until the 2008 Comprehensive Plan was finalized He stated that CF Industries is an outstanding corporate citizen that purchased acreage within the City of Rosemount with the intent to use it, not to leave lafge spaces of land unuseable. Staff responded to Mr Phelps by apologizing i€ liege was confusion during the work session regarding this item but disagreed with the statement that staff indicated during the work session that all of the CF land would be rezoned to Heavy Industrial Staff presented the same map at the work session that they did during this meeting and it illustrated only a portion of the CF site being rezoned to Heavy Industrial There were no further pubhc comments. MOTION by. Schwartz to close the Public Hearing. Second by Howell. Ayes All Nays None. Monon approved. Pubhc hearing was closed at 8:41 p m Chairperson Messner requested any follow up discussion on the item from the Commission members. Packet page 188 of 207 EXCERPT FROM MINUTES PLANNING COMMISSION REGULAR MEETING SEPTEMBER 26, 2006 Chairperson Messner reviewed the areas owned by Flint Hills Resources that they would like zoned heavy industrial and compared these areas on the comprehensive plan map, the 42/52 comp plan map, and the zoning map One area in question is not actually zoned industrial but was guided industrial in the 42/52 land use study Chairperson Messner stated that it was originally the Commission's intention to only discuss land zoned industrial, which doesn't preclude anybody at a later date from requesting a rezoning He stated that delaying this process until the comprehensive plan is completed could be a two year delay Mr Todd Phelps, Leonard Street Demard, 150 South Fifth Street, Suite 2300, Minneapolis, Minnesota 55402, representing CF Industries, Inc approached the Commission again and stated CF Industries' entire site is currently zoned general industrial and a portion is inconsistent with the current comprehensive plan He then wondered if it was any more inconsistent to rezone the property heavy industrial at this time Chairperson Messner further reviewed CF Industries' property and how it related to the current comprehensive plan and zoning map. Ms. Lindquist stated that the rezoning did not extend far enough to include all of CF Industries' property because a portion of it is designated as flood plain Walter Rockenstem, Faegre Benson, 2200 Wells Fargo Center, Minneapohs, Minnesota, representing Flint Hills Resources approached the Commission and stated that it is important that the Commission forward this matter on to the City Council,and not watt until the Comprehensive Plan is complete George Psihos, President of Technical Erectors, Inc ,31Q Excelsioi,$oulevard, Minneapolis, Minnesota, and also located on Doyle Path in Rosemount, approached the Commission and stated he is interested in markeung his Rosemount property One of his concerns is whether or not the property will be zoned GI or HI as there are certain restrictions to each classification Mr. Pathos stated he would appreciate the opportunity to discuss options with the City in the future. Chairperson Messner askedahe,Commissie4fir any questions or comments Commissioner Schultz moved to make a motion. Chairpersdri Messner first wanted to say that he t the small portion,by the railroad owned by Flint Hills Resources could be included in the rezoning MOTION by Comtmssioner Schultz 'to recommend the City Council approve rezoning portions of the properties owned by CF Industries, Conunental Nitrogen, Dixie Petro Chemical, and Flint Hills Resources from GI General Industrial to HI Heavy Industrial as illustrated on the attached map, subject to the following condition: 1. City Council Approval'of the Zoning Text Amendment Creating the New HI Heavy Industrial Districts Mr. Lindahl stated that this item will be moved to the City Council on October 17, 2006, for approval. Chairperson Messner will follow up with Mr Lndahl the morning of September 27, 2006 on the objection that was raised by Joan Schnieder Packet page 189 of 207 Second by Howell. Ayes: All Nays. None. Motion approved. AGENDA ITEM: Case 06 -46 -ZA General Industrial District to Heavy Industrial District Rezoning AGENDA SECTION: Public Hearing PREPARED BY: Jason Lindahl, A.I.C.P. Planner AGENDA NO. 5 b. ATTACHMENTS: Location Map, Comments from CF Industries and Flint Hills Resources, Draft copies of the GI General Industrial, HI Heavy Industrial Districts, Draft Definition Changes, Draft Rezoning Map Illustrating Additional Rezoning Requests APPROVED BY: RECOMMENDED ACTION: Motion to recommend the City Council approve rezoning portions of the properties owned by CF Industries, Continental Nitrogen, Dixie Petro Chemical, and Flint Hills resources from GI General Industrial to HI Heavy Industrial as illustrated on the attached map, subject to the following condition: 1. City Council Approval of the Zoning Text Amendment Creating the New HI Heavy Industrial Districts 4 ROSEOLINT Packet page 190 of 207 PLANNING COMMISSION Planning Commission Meeting Date: September 26, 2006 Tentative City Council Meeting Date October 17, 2006 EXECUTIVE SUMMARY SUMMARY Applicant Property Owner(s). City of Rosemount Location Selected Parcels North of 140 Street, South of 120 Street, East of Blaine Avenue (County Road 71) and West of the Mississippi River. Area in Acres 1,521 Acres Comp Guide Plan Desig• GI General Industrial Current Zoning: GI General Industrial Proposed Zoning. HI Heavy Industrial This item was initiated by staff at the direction of the City Council for the purpose of rezoning selected parcels from GI General Industrial to HI Heavy Industrial in coordination with the industrial districts text amendment process The selected properties are located north of 140t Street, south of 120t Street, east of Blaine Avenue (County Road 71) and west of the Mississippi River. These properties were selected based on the criteria outhned by the Planning Commission which requires the property be currently zoned GI General Industrial and contain an existing building or structure conducting a Heavy Manufacturing use This memo will review the proposed rezoning to insure it is (1) consistent with the goals and policies of the Comprehensive Plan, (2) comparable with surrounding present and future land uses, (3) will bring the subject properties closer to compliance with the zoning ordinance, and (4) will not intensify the use of the property placing additional burden on the City's utilities. BACKGROUND The Planning Commission held public hearings to review the text amendments during their July and August mceungs. At the conclusion of the August hearing, the Commission unanimously recommended the City Council approve these text amendments. In coordination with the text amendment, staff now recommends rezoning selected properties from GI General Industnal to HI Heavy Industrial (see attached map) These properties were selected for rezoning based on the criteria outlined by the Commission during the text amendment process, which include: 1. The subject property is currently zoned GI General Industnal. 2 The subject property contains an existing building or structure used for Heavy Manufacturing (see attached) Applying these cntena, staff recommends rezoning selected portions of property owned by CF Industries, Continental Nitrogen, Dixie Petro Chemical, and Flint Hills resources from GI General Industrial to HI Heavy Industrial. The boundaries for this rezomng are consistent with those that were reviewed by the Planning Commission during the August meeting with the excepuon of the inclusion of the CF Industries barge terminal area While the barge terminal area is located within the Floodplain of the Mississippi River, staffs finds it plays an essential role in the operanon of the CF Industries and warrants inclusion in the Heavy Industrial district. Both CF Industnes and Flint Hills have requested additional portions of their property be rezoned Heavy Industrial as compared to the staff recommendation With CF Industries they would like the property immediately east of the area proposed for Heavy Industrial to also be rezoned Heavy Industrial Currently this area is zoned General Industrial but is guided in the approved Comprehensive Plan as Agriculture The designation of Agriculture was reaffirmed through the 42/52 land use study conducted by the City in 2004 and approved by the Council in 2005. The designation of Agriculture is found in the 2020 Comprehensive Plan adopted in 2000 and also shows up in the 2000 Update adopted in 1993. However, both documents recognized that portions of this area are zoned Industnal However, it appears from old files that the City never fully implemented the General Industnal recommendations of the 2020 Comprehensive Plan in that there is an inconsistency between the General Industnal zoning district boundaries and the General Industnal land use designations Staff expects to begin the process of unplementauon, along with the parcel by parcel review of the area that recently received Comprehensive Plan Amendment approval along Hwy 42, later this year based upon direction of the Council It is expected that at that time there will be a pohcy discussion relating to the eastern property owned by CF Industries. Flint Hills has expressed interest in the City zoning property in the southern portion of their property, adjoining the railroad to Heavy Industrial so it is consistent with the remaining portion of their property. There are two issues associated with this request In one case, the property is zoned General Industrial but is not currently guided General Industrial, although, through the 42/52 Land Use study, the land use recommendation is for General Industrial Because this area was not part of the Comprehensive Plan amendment (north of 140 south of the rail line) the land use designation continues to remain Agriculture. We have consistently shown this area for rezoning and have published and noticed this change. It is up to the Planning Commission whether they choose to rezone this property during the current process or wait until the property owner requests a Comprehensive Plan amendment. Packet page 191 of 207 2 The other area of interest by Flint Hills is just east of the railroad, north of the 140 Street area. In that case the property is not currently zoned or guided for General Industrial, although again is designated in the 42/52 Land Use Study for General Industrial. As the Commission is aware, the 42/52 Land Use Study made land use recommendations for all properties within the City outside of the previous MUSA The intention was to show what is intended for future growth and land use although it was not intended that the entire Plan would be implemented immediately but over time. This second area was not part of the notification process for rezoning and would need to be rezoned during a separate process. While other property owners within the existing GI Distract have verbally expressed a desire to be rezoned Heavy Industrial, no official requests have been filed In discussion with these property owners staff found these requests did not meet the original selection criteria outhned by the Planning Comnussion and, in some cases, would also require a Comprehensive Plan amendment As a result, these requests were not part of this rezoning proposal Rezoning When considering this or any other rezoning request, there are four key criteria for the City to weigh These criteria and staff's findings for each are outlined below. Based on this information, staff recommends approval of the rezoning proposal For your reference, State Statute requires rezonings from residential to commercial or industrial be approved by a two- thirds majority of the City Council. All other rezomngs require only a majority vote for approval, which is what is required in this case. Consistency with Comprehensive Plan. Staff finds the proposed rezoning is consistent with the goals and policies of the Comprehensive Plan. With the exception of the discussion above all the subject properties found m the attached map are zoned and guided GI General Industrial Rezoning these properties from GI General Industrial to the new HI Heavy Industrial district simply moves these properties from one industrial zoning district to another. According to the Comprehensive Plan, land guided General Industnal is uniquely suited for industrial uses that require large sites and exterior storage and are served by arterial, rail, and barge transportation systems By comparison, 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 chenucals 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 compauble with residential uses or high concentrations of people. Policies outlined in the Comprehensive Plan relevant to rezoning the subject properties to HI Heavy Industrial include• 1. Require that planning for industnal developments minimize environmental impacts, land use conflicts, and visual accessibility from the surrounding properties and public streets and highways. 2. Maximize land use compatibility by requiring larger setbacks, buffering, screening, and Packet page 192 of 207 landscaping at the edges of industrial areas and along major streets and highways. Compatibility with Present and Future Land Uses Based upon the Comprehensive Land Use Plan and the 42/52 Comprehensive Land Use Plan, staff finds rezoning the selected properties from GI General Industrial to HI Heavy Industrial will be compatible with surrounding present and future land uses. With the exception of the western border of the Flint hills site, the properties designated to be rezoned Heavy Industrial are surrounded by properties zoned and /or guided for General Industrial use This is consistent with the amended GI General Industnal zoning district which calls for the General Industrial District to be the preferred transition district between the Heavy Industrial District and adjacent land uses. In addition, it should be noted that while the land west of the Flint Hills site is zoned and guided AG Agricultural, Fhnt Hills owns this land and is on record that this area is to serve as a long -term buffer between the refinery site and the remainder of the community Conformance with New Zoning Standards. The key challenge in creating the HI Heavy Industrial dismct was to balance the need to create a new zoning district that would accommodate the existing refining and chemical processing industries with the City pohcy to raise the performance standards and upgrade new developments coming into the community It should be noted that some aspects of the properties designated to be rezoned Heavy Industnal are currently non- conforming and may not comply with the all of the new performance standards found within the HI District However, it is staff's behef that none of the uses will be made nonconforming by either the Heavy Industrial or General Industrial text amendments. As a result, staff finds rezoning these properties from GI General Industrial to HI Heavy Industrial will bring them closer to compliance with the use and performance standards of the new ordinance as well as implements the City's policies regarding industrial development. Under Minnesota law, existing non conforming developments at the time of the adoption of these changes are "grandfathered in." This means that the structures associated with the industrial uses map be repaired, replaced, restored, maintained or improved "as is." However, any enlargements or expansions must meet the new performance standards (setbacks, screening, building materials and the like). Should the non conforming structure be destroyed by fire or other peril, even by more than 50% of the market value, it may be rebuilt in its current condition if a building permit is apphed for within 180 days Availability of Utilities. Of the four businesses designated to be rezoned from GI General Industrial to HI Heavy Industrial, only Continental Nitrogen is located within the current (2010) Metropolitan Urban Service Area (MUSA) While three of the four (Continental Nitrogen, Dixie Petro Chemical, and Fhnt Hills) have City water, none of the businesses have City sewer. To data, only Flint Hills has requested City sewer services As a result, staff finds that rezoning these properties from GI General Industrial to HI Heavy Industrial will not intensify these uses placing additional burden on the City's utilities. CONCLUSION Staff recommends rezoning portions of the properties owned by CF Industries, Continental Nitrogen, Dixie Petro Chemical, and Flint Hills Resources from GI General Industrial to HI Heavy Industrial This recommendation is based on the finding that the subject properties meet the rezoning selection criteria outlined by the Planning Commission dunng the Industrial districts text amendment process which requires the property be currently zoned GI General Industrial and contain an existing building or structure conducting a Heavy Manufacturing use 1 his Packet page 193 of 207 4 recommendation is also based on the following four findings: (1) that the rezoning is consistent with the goals and policies of the Comprehensive Plan, (2) is compatible with surrounding present and future land uses, (3) will bring the subject properties closer to compliance with the zoning ordinance, and (4) will not intensify the use of the property placing additional burden on the Citt's utilities. Both CF Industries and Flint Hills have requested land outside staff's recommendation be rezoned Heavy Industrial. These requests fail to meet the Planning Commission's original selection criteria and conflict with either the official Land Use Plan or the 42/52 Land Use Plan Gwen these inconsistencies, these areas were not included in either staff's recommendation or the official public nonce. Subject to Council direction, staff expects to begin the process of Comp Plan implementation, along with the parcel by parcel review of the area that recently received Comprehensive Plan Amendment approval along Hwy 42, later this year It is expected that at that ume there will be a policy discussion relating to the eastern property owned by CF Industries. Packet page 194 of 207 LEONARD STREET AND DEINARD September 6, 2006 Charles L. LeFevere, Esq Kennedy Graven, Chartered 470 U.S. Bank Plaza 200 South 6th Street Minneapolis, MN 55402 -1458 Dear Charlie: SEP 7 2006 RE: CF Industries City of Rosemount Zoning Issues Our File No. 52478.00024 150 SOUTH FIFTH STREET SUITE 2300 MINNEAPOLIS, MINNESOTA 55402 612- MAIN 612-333.1637 EL% TIMOTHY J. KEANE 612 -335 -7192 DIRECT TIM.I EANE [@LEONARD.COM Thank you for taking the time to speak with me last week regarding the proposed text amendments to the Rosemount zoning ordinance that were recommended by the Rosemount Planning Commission on August 22, 2006. As I mentioned, we represent CF Industries, Inc. "CFI and we are concerned that these amendments will have a profound negative affect on CFI s current operations and its ability to operate its present operations and expand in the future. I am writing to ask for an in- person meeting with you and the City Administrator to discuss CFI's concerns. By way of background, CFI owns approximately 382 acres between Pine Bend Trail and the Mississippi River (the "Pine Bend Terminal" or "Terminal Attached is a map prepared by our planner, Tim Erkilla, with Westwood Professional Services, which depicts the various parcels that comprise the Pine Bend Terminal. The Pine Bend Terminal has operated since 1965 and has been operated by CFI since 1972. The Pine Bend Terminal is a unique, intennodal bulk commodity transport and warehouse resource benefiting the greater agricultural community. The Pine Bend Temunal transports bulk commodities, primarily crop nutnents, from nver -bound barges to surface -bound transport by truck or rail. The CFI Terminal transfers hundreds of thousands of tons of product from river to surface transportation annually. The Terminal includes several miles of conveyor belt systems and rail yards. The crop nutrients transported through this facility are essential to the agricultural industry of the Upper Midwest. We have been working with the Rosemount Planning Department since April 2006, and unfortunately, we still have many unresolved concerns regarding the process and the substance of the proposed text amendments. LAW OFFICES IN MINNEAPOLIS MANKATO ST. CLOUD WASHINGTON, D.C. 3523447 1 Packet page 195 of 207 A Professional Assorantion WNW W LEONAKD.COM Charles L. LeFevere, Esq. September 6, 2006 Page 2 1. Process Issues. We understand Rosemount is undertaking a review of its Comprehensive Plan. Notwithstanding the Plan update, the City appears intent on adopting these industrial text amendments before completing its review and potential revision of the Comprehensive Plan As you know, the Comprehensive Plan is the guide to the zoning code —not the other way around. It seems Iogical that procedurally, the City would first review its Comprehensive Plan and then amend its zoning code so that the code is consistent with the plan. Here, the City is reversing this customary process. 2. Map Amendment Timing. The text amendments are proceeding without processing amendments to the zoning map. We have been told the City will revise the zoning map after it adopts the text amendments. This creates a couple of critical issues: First, CFI will not know what zoning classification its property will Of ever) be rezoned to. It seems logical that the text amendments and the revised zoning map should be processed concurrently so that the property owners have a better understanding of how the text amendments will affect their property. Moreover, both the text amendments and the revised zoning map should be driven by the revised Comprehensive Plan —not vice versa. Second, CFI's present use is permitted in the new "Heavy Industrial" zoning classification but not in the "General Industrial" classification. If the text amendments are adopted by the City Council without simultaneously adopting a revised zoning map (showing the Pine Bend Terminal as "Heavy Industrial CFI will be legally nonconforming in its use unless and until the zoning map is revised. It is illogical and contrary to statutory planning requirements to create this artificial nonconformity and uncertainty for CFI and Rosemount's other industrial businesses. 3. Potential District Conflicts. Although not technically a part of the text amendment process, a map has been circulated by planning staff showing part of the Pine Bend Terminal as "Heavy Industrial" and part as "General Industrial Attached is a copy of this map. This maps conccros CFI for several reasons: First, CFI acquired and improved the Pine Bend Terminal with the intent that it could expand its business on its own property. As currently drafted by planning staff, CFI would not be able to expand its business without having to rezone its own property. Second, if the Pine Bend Terminal falls within multiple zoning classifications, it will create unreasonably large setbacks between zoning classifications. As currently drafted, the setbacks are 300 in the Heavy Industrial district and 75 feet in the General Industrial. Consequently, this would create large artificial 375 foot setbacks in the middle of the Pine Bend Terminal between parcels owned by CFI. 4. Setback Issues. Likewise, there is no exception in the text amendments for setbacks between adjacent parcels owned by a single landowner. Again, this would create large internal setback areas between multiple adjacent parcels owned by CFI. In order to expand across its own parcels, CFI would need to seek setback variances from the City. This is an unnecessary, expensive, time consuming and overly burdensome process. 3523447 1 Packet page 196 of 207 Charles L. LeFevere, Esq. September 6, 2006 Page 3 5. Setback Nonconformities. The text amendments (and the proposed zoning map) do not take into account CFI's operations with respect to the Mississippi River. Again, the setbacks in the text amendments (and as show on the maps), would create legal nonconforming uses with respect to CFI's nver -front barge terminals. These terminals are an integral part of CFI's operations. 6. Use Conformity Issues Finally, assuming that Pine Bend Terminal is ultimately rezoned Heavy Industrial, the permitted uses in the Heavy Industrial are defined too narrowly. They will create legal a legal- nonconforming use with respect to part of CFI's current operations and prohibit CFI's planned future expansion. Under the current definition, CFI may only "...blend, store and distribute chemicals or fertilizer." There are significant problems with this narrow limitation: First, many of CFI's products do not require "blending Consequently, the text needs to be written in the disjunctive —not conjunctive —by using the word "or" rather than "and Second, CFI handles bulk matenals in addition to chemicals and fertilizers. CFI stores and distnbutes a number of substances that would better be classified as "bulk materials" such as aggregates. We again request the storage and distribution of "bulk materials" should be added as a permitted use. The text amendments and the proposed zoning map pose great concerns to CFI. We believe as currently presented, the text amendments and proposed zoning map will profoundly and adversely affect CFI's ability to operate and expand its facilities to meet the needs of the marketplace. CFI has carefully and responsibly operated an important, bulk, intermodal transfer facility in Rosemount for over 40 years. We respectfully and sincerely request a meeting to discuss these concerns. Please contact me at (612) 335 -7192 to let me know your availability. Sincerely, LEONARD, STREET AND DEINARD Professional Association TJK: Encl. cc: Scott Dohmen (via email), CFI Tom Mollet (via email), CFI Bill Droste, (via email), CFI Todd M Phelps, (via email) Leonard, Street and Deinard Tim Erkkila (via email), Westwood Professional Services Paul Cassidy (via email), Leonard, Street and Deward 3523447.1 Packet page 197 of 207 FLINT HILLS RESOURCES Pine Bend Refinery September 6, 2006 Jason Lindahl, AICP Planner Community Development Department City of Rosemount 2875 145th Street West Rosemount, MN 55068 -4997 Dear Jason: Flint Hills Resources, LP appreciates the thorough approach you have taken to the proposed changes in the City's industrial zoning ordinances We especially value the creation of a new Heavy Industrial (HI) District to acconmiodate the Pule Bend Refinery and other heavy industrial users. As we proceed to City Council consideration of these ordinance changes, Flint Hills makes two requests of vital importance to the ongoing operation and future expansion of the Refinery First, Flint Hills asks that the City Council not adopt the proposed ordinance changes (either the new HI District ordinance or changes to the General Industry (GI) District ordinance) until the ordmance rezoning properties to the HI District can be adopted simultaneously If the zoning ordmance amendments are adopted first, then Flint Hills and other heavy industries may become legal nonconforming users in the GI Distnct and, if that happens, may not be able to expand their businesses until their properties are rezoned to the III District. Flint Hills has 30 -plus projects under construction, scheduled, and planned over the next 6 months, many arguably involving Refinery expansion Flint Hills cannot afford uncertamty about whether these projects can proceed. Second, Flint Hills asks that the City rezone property owned by Flint Hills just north of 140th Street and west of Blaine Avenue (South Parcels) to the HI District The South Parcels ale shown on Exhibit A Land Use Comp Plan attached. (As you know, several of these parcels have not been shown as rezoned to the HI District on the preliminary rezoning maps distributed at Planning Commission meetings.) Flint Hills makes this request now because rezoning these Parcels necessitates notice of a minor Comprehensive Plan change for South Parcels at the same time the City notices the HI rezoning ordinance to avoid delays in the rezoning process The South Parcels are currently guided AG- Agriculture and m one case GI- General Industrial as also shown on -Paeketpage- QB o Re: Rosemount Industrial Districts Zoning Process HAND DELIVERED DIANE S.KOEBELE DIRECTOR NORTHEPN TIER PUBLIC AFFAIRS P.O. Box 54596 Saint Paul, MN 55164 -0596 651 437 0560 Fax 651 437 0868 Jason Lmdahl, AICP September 6, 2006 Page 2 Exhibit A. They are currently zoned a mix of AGP- Agricultural Preserve, GI- General Industrial, and AG- Agriculture as shown on Exhibit B ZornngMap Exhibit C Industrial Districts (Draft) shows the rezoning requested by Flint Hills The current zoning, the zoning requested by Flint Hills, and the preliminary rezoning maps prepared by City staff all conflict with the Land Use Conip Plan, so a Comprehensive Plan change should lie completed with the rezoning. Why does Flint Hills continue to seek an HI District designation for the South Parcels? Early in this industrial dnstnct zoning process, City staff asked Flint Hills to identify the expected future limits of the Pine Bend Refinery and not to overreach as it did so. City staff also asked that the Refinery boundary be kept east of Rich Valley Boulevard and Blaine Avenue Flint Hills understood these limits would be respected in the subsequent industrial district zoning process So Flint Hills carefully considered this request and provided a map that included the South Parcels and did not show any Refinery development west of Rich Valley Boulevard or Blaine Avenue. To keep the Pine Bend Refinery east of Rich Valley Boulevard and Blame Avenue, Flint Hills must be able to expand south onto the South Parcels. If you have any questions concerning these requests, please call me. Sincerely, Diane S. Koebele Dnector, Northern Tier Public Affairs DSK/nm cc• Kim Lindquist Janne Verbrugge Packet page 199 of 207 P 4 ROSEMOUNT September 27, 2006 Ms. Joan Schmeder 12255 Rich Valley Blvd. Rosemount, MN 55068 Dear Ms. Schnieder, This letter is in response to your concerns about the public hearing noaficanon for the Heavy Industrial rezonuigs that took place on September 26, 2006. We have reviewed the parcel information, and based upon the GIS information from the County, found that your property is outside of the noaficanon boundary The City's ordinance (11- 10- 11B4.) states that amendments to the zoning ordinance requite notification to all property owners within 350' Your property is appro:umately 403' from the Flint Hills property that was being rezoned. I have also informed the Planning Commission and City Council of our findings. Given that the Planning Commission recommended the Council approve the Heavy Industrial rezonings, this item will be scheduled for the City Council meeting on October 17, 2006. If you have any other quesnons, contact me at 651- 322 -2020. KimT,indquist, Coinmumty Development Director Cc Mayor and City Council Jamie Verbrugge, City Administrator Jason Messner, Planning Commission Chair COMMUNITY DEVELOPMENT SPIRIT OF PRIDE AND PROGRESS Rosemount City Hall 2875 145th Street West Rosemount, MN 55068 -4997 Packetpage203o1f2Ar1 -423 -4411 TDD /TTY 651 423 -6219 Fax 651- 423 -5203 www n Tosemount mn.us Industrial Districts FILE /snap2 /sharel /GIS /City /Maps/Departmental Maps /CommumtyDevelopment/ 4 ROSEMOUNT Industrial GI General Industrial HI Heavy Industrial j IP Industrial Park Other I RR Rural Residential 1 AG Agricultural AGP Agricultural Preserve PI Public /Institutional ing WM Waste Management FP Flood Plain 1W Water July 2006 MINNESOTA FILE /snap2 /sharel/GIS /City /Maps /Departmental Maps /CommunityDevelopment/ Industrial GI General Industrial HI Heavy Industrial IP Industrial Park Other RR Rural Residential AG Agricultural AGP Agricultural Preserve PI Public /Institutional WM Waste Management i FP Flood Plain W Water October 2006