HomeMy WebLinkAboutIV.A - Preliminary Land Credit - Creek Rentals
HEDRA Memorandum
To: HEDRA
From: John Hinzman, Community Development Director
Date: April 23, 2019
Item: Approve Preliminary Land Credit Sale and Concept Plan – Creek Rentals LLC –
Lot 3, Bock 2, Hastings Industrial Park No 7 – 2030 Spiral Blvd (2.58 acres)
REQUEST:
Chad Smurawa of Creek Rentals LLC is seeking to acquire Lot 3, Block 2, Hastings
Industrial Park No. 7. The 2.58 acre property is located at 2030 Spiral Blvd. The
following actions are requested:
1) Preliminary approval of a land credit for property acquisition. Land credits
would reduce the market price of the land to $62,868.75. Preliminary approval
will reserve the property through development of the development agreement.
2) Concept plan review to construct one business storage and three mini storage
buildings totaling 48,000 s.f. Conceptual Plans have been provided. Final Site
Plan approval will be necessary prior to execution of the land credit agreement.
Action follows preliminary discussion held at the March 14th Meeting.
RECOMMENDATION:
Approval of the land credit and concept plan is recommended. The City Council will
consider similar action at the May 6th meeting.
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.
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.
REMOVAL OF DIRT STOCKPILE
The City placed approximately 1,000 cubic yards of fill during grading of the Industrial
Park in 2006. Use of the fill for future City projects is desired. The cost of relocating the
existing stockpile to another city owned site is estimated to cost $56,000. The stockpile
must be removed from the site in order for future development to occur.
At the last HEDRA Meeting, Commissioners discussed a potential discount on the price
of the property in exchange for the removal of the dirt by the developer. Commissioners
spoke in opposition to the concept, preferring that City funds (not HEDRA funds) be
used to relocate the pile.
Options for removal of the stockpile have been discussed with the Public Works
Department. Relocation using city labor and resources is not desired; labor and
equipment have be allocated to more immediate issues. Funds to relocate the stockpile
have not been allocated.
Staff supports using proceeds from the sale of property to relocate the stockpile. The
$62,868.75 in proceeds from the sale would offset the $56,000 cost for relocation.
Development of the property would yield approximately $12,000 to $15,000 in City taxes
annually ($25,000 - $30,000 in total taxes). The cost of relocating the stockpile would
be offset by tax proceeds from development of the land within four years.
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