HomeMy WebLinkAboutIV.A - Amend Preliminary Land Sale - Creek Rentals
HEDRA Memorandum To: HEDRA
From: John Hinzman, Community Development Director Date: September 26, 2019 Item: Amend Approval of Preliminary Land Credit Sale and Concept Plan – Creek Rentals LLC – Lots 11-12, Block 2, Hastings Industrial Park No 7 – Lightbourn Court (2.45 acres)
REQUEST: Chad Smurawa of Creek Rentals LLC is seeking to acquire Lots 11-12, Block 2, Hastings Industrial Park No 7. The two lots total 2.45 acres in size and are located northeast of 31st Street and Lightbourn Court.
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 $38.219.88. Preliminary approval
will reserve the property through development of the development agreement. 2) Concept plan review to construct 14,000 s.f. of business storage building space and 30,000 s.f. of standard storage building space for a total of 44,000 s.f. of mini storage space. Conceptual Plans have been provided. Final Site Plan
approval will be necessary prior to execution of the land credit agreement. Earlier this year, HEDRA and the City Council authorized similar action on a 2.58 acre property located at 2030 Spiral Blvd. The former site contained a stockpile of top soil that needed to be removed prior to development. The City hoped to find an entity that
would either pay for acquisition and removal of the topsoil, or remove the top soil at no cost. The City put the project out to bid and did not receive any response. Further direct inquiries with contractors were also unsuccessful. RECOMMENDATION:
Approval of the land credit and concept plan is recommended. The City Council will consider similar action at the October 7th 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 two lots have been rough graded and are stubbed with utilities Adjacent Zoning and Land Use: The following land uses abut the property:
Direction Existing Use Zoning Comp Plan North Stormwater pond Vacant – Future Industrial I-1 – Industrial Park Industrial
East Recreational Trail Vacant – Future Apartments R-3 – Medium High Density Residential Medium Density Residential
South 31st Street Vacant – Agricultural Land Marshan Township Marshan Township
West Lightbourn Court
Midwest Dental
I-1 – Industrial Park
Industrial
BUSINESS SUBSIDY ANALYSIS:
Property Size 2.45 acres
Property Market Value $164,351.88 ($1.54 per s.f.) Estimated Building Value $1,261,3233.47
Construction Credit $126,132 (10% of building value)
Cash Due Upon Transfer $38.219.88 (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 14,000 s.f. of business storage building space and
30,000 s.f. of standard storage building space for a total of 44,000 s.f. of mini storage space with an estimated value of at least $1,261,323.47 within 18 months of executed agreement.
2. Payment of $38,219.88 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. 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 Lightbourn Court.
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