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HomeMy WebLinkAboutIV.B - Industrial Lot Sale Review - Creek Rental HEDRA Memorandum To: HEDRA From: John Hinzman, Community Development Director Date: March 14, 2019 Item: Preliminary Review of Potential Lot Sale – Creek Rentals LLC – Lot 3, Bock 2, Hastings Industrial Park No 7 – Spiral Blvd (2.58 acres) REQUEST: Review and provide comment on a future potential lot sale and land credit within the Industrial Park. HEDRA comments along with additional information will be brought forward for formal action at a future date. The applicant will be in attendance at the meeting to provide further information. Specific items for discussion include:  Sale and partial land credit for a business and mini storage facility  Allowance of a credit for relocation of approximately 1,000 cubic yards of City owned fill located on the property to another location. Chad Smurawa of Creek Rentals LLC is seeking to acquire Lot 3, Block 2, Hastings Industrial Park No. 7. For a mini storage facility. The 2.58 acre property is located at the southwest corner of Spiral Blvd and Voyageur Pkwy. BACKGROUND INFORMATION: Comprehensive Plan Classification: The property is guided for Industrial Use per the 2030 Comprehensive Plan. The proposed use as a business and mini storage facility is consistent with the Comprehensive Plan. Zoning Classification: The property is zoned I-1 – Industrial Park. Business and mini storage uses are not expressly identified uses, but align most closely with warehouse and storage uses which are permitted uses within district. Existing Condition: The site contains approximately 1,000 cubic yards of clean fill which is used by the City. The fill would need to be relocated prior to development. The remaining site is flat and treeless. The lot was rough graded for development in 2006. Adjacent Zoning and Land Use: The following land uses abut the property: Direction Existing Use Zoning Comp Plan North Spiral Blvd Vacant – Future Industrial I-1 – Industrial Park Industrial East Vacant – Future Apartments R-3 – Medium High Density Residential Medium Density Residential South Stormwater Pond Vacant – Future Industrial I-1 – Industrial Park Industrial West Vacant – Future Industrial I-1 – Industrial Park Industrial BUSINESS SUBSIDY ANALYSIS: Property Size 2.58 acres Property Market Value $173,072.59 ($1.54 per s.f.) Estimated Building Value $1,102,038.42 Construction Credit $110,203.84 (10% of building value) Cash Due Upon Transfer $62,868.75 (market value less construction credit Justification for Subsidy:  Increased tax base of over $1 million.  Conversion of tax exempt property to a tax paying entity.  Creation of 0.5 new living wage jobs. Land Credit Requirements: 1. Complete construction of a 12,000 s.f. business storage building and 36,000 s.f. of mini storage buildings building with an estimated value of at least $1,102,038.42 within one year of executed agreement. 2. Payment of $62,868.75 upon transfer of the property. The cash payment may be further reduced upon relocation of the City fill stockpile to an alternative location. 3. Remain in business in Hastings for at least five years from the date of occupation. 4. Obtain Site Plan approval for construction of the business and mini storage buildings. 5. If the above requirements are not met, the owner must repay the City a prorated share of the subsidy. CONCEPTUAL SITE PLAN REVIEW: Creek Rentals has submitted a conceptual site plan and architectural information for review. The following comments serve to guide future site plan development and are based on the information received and property characteristics. Site Plan Approval Site Plan approval through the Planning Commission and City Council will be necessary prior to executing of the Land Credit Agreement. Use: The business storage and mini storage units are considered a permitted use within the I-1 Industrial Park District. Zoning Setbacks: Setbacks in the I-1 District are not specified. It appears the lot provides adequate room for construction of the proposed building and associated parking consistent with adjacent setbacks. Access and Circulation: Access and circulation appear acceptable. All access would be provided through a singular entrance to Spiral Blvd. Parking: Parking for business and mini storage units is not expressly identified within the Zoning Code. Users typically park in front of the units. The concept plan will need to be further reviewed to ensure adequate parking is provided. Architectural Building Elevations: Architectural Elevations will need further review to ensure that they are consistent with the Zoning Code. The applicant has submitted pictures of potential buildings that have brick and metal exteriors. Landscape Plan: A Landscape Plan will need to be submitted. Grading, Drainage & Utility Plans: Grading, Drainage and Utility Plans will be reviewed by the Public Works Department. ATTACHMENTS:  Location Map  Letter from Applicant  Concept Plan LOCATION MAP Mini‐Storage Facilities of the Past        • No Landscaping • No Entrance Signing • Gravel Driveways • Poorly Maintained Grounds Grounds • Low Slung 'Commercial' Building • No Building Overhangs • Steel Building Design ‐ Lack Quality Exerior  Finishes Building • Unattractive Grey Steel Fence • No Electronic Access Entrance Gate • No Security System • Poorly Lit  Security Our Neighborhood Self‐Storage Development               Community Investment   Financial Investment (exclusive of land) anticipated  at $1,500,000    Local Ownership   Well Maintained  Landscape including  Boulevard Trees   Modern Exterior  Finishes including  Brick and Metal  Modern, Attractive  Low Profile  Entrance Sign   Attractive Gated  Entrance with Black  Front Security Fence  Asphalt Driveways  with LED Lighting    Business Storage  Units with Large  12’x14’ ft. doors    24 Hour Camera  and Site Security   System  Warm, Attractive  ‘Neighborhood’  Friendly Feel