HomeMy WebLinkAboutIV.B - Onyx Property Sale - REMOVED FROM CONSIDERATION
HEDRA Memorandum To: HEDRA
From: John Hinzman, Community Development Director Date: March 12, 2020 Item: Approve Preliminary Land Credit Sale and Concept Plan – Onyx Industrial Properties – Lot 10, Block 2, Hastings Industrial Park No 7 – 2951 Lightbourn Court
REQUEST: Onyx Industries is seeking to acquire Lot 10, Block 2, Hastings Industrial Park No. 7. The 1.16 acre property is located at 2951 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 $34,907.21. Preliminary approval will reserve the property through development of the development agreement.
2) Concept plan review to construct a 10,700 s.f. industrial manufacturing building. Conceptual Plans have been provided. Final Site Plan approval will be necessary prior to execution of the land credit agreement. RECOMMENDATION:
Approval of the land credit and concept plan is recommended. The City Council will consider similar action at the March 16th meeting. BACKGROUND INFORMATION:
Onyx Industries: Onyx Industries is a manufacturer of products for industrial machinery that are used to
immediately communicate machine state to plant personnel through a visually color coded industrial indicator light. These devices are commonly used to optimize plant floor productivity. They also engineer electrical control systems for custom machinery. Onyx has outgrown their existing building at 2347 Commerce Drive in Hastings. Further information can be found at https://stack-lights.com/. Proposed Building: Onyx plans to construct a 10,700 s.f. (76’ x 140’) building with 18-20’ high walls. The building would be a two unit facility, with Onyx being in one side and a tenant in the other.
The building includes office space and finished mezzanine space above offices. The building would contain 7,600 s.f. of manufacturing space (3,800 s.f. per side). The building would be
of post frame construction with an attractive design presentation to the street. Comprehensive Plan Classification: The property is guided for Industrial Use per the 2040 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. Fabricating and manufacturing of goods is a permitted use in the I-1 District. Existing Condition: The site is flat, vacant, treeless, and stubbed with City utilities. 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 Stormwater Pond Vacant – Future Industrial I-1 – Industrial Park Industrial
East Vacant – Future Mini Storage I-1 – Industrial Park Industrial
South Lightbourn Court I-1 – Industrial Park Industrial
West Crossfit I-1 – Industrial Park Industrial
BUSINESS SUBSIDY ANALYSIS:
Property Size 1.16 acres
Property Market Value $77,707.21 ($1.54 per s.f.)
Estimated Building Value $428,000 (10,700 s.f. @ 40 s.f.) Construction Credit $42,800 (10% of building value)
Jobs Credit N\A
Cash Due Upon Transfer $34,907.21 (market value less credit)
Justification for Subsidy:
• Retention of existing business
• Increased tax base of over $400,000
• Conversion of tax exempt property to a tax paying entity. Land Credit Requirements: 1. Complete construction of a 10,700 s.f. industrial manufacturing facility within one year of executed agreement.
2. Payment of $34,907.21 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 industrial manufacturing building.
5. If the above requirements are not met, the owner must repay the City a prorated share of the subsidy. CONCEPTUAL SITE PLAN REVIEW
Onyx 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. 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 have not been defined, however a singular access from Lightbourn
Court is expected. Parking: 11 parking spaces are shown on the concept plan. 18 spaces would be required based on the following calculation:
Use Size Calculation Total Parking
Office 3,100 s.f. 1 space per 300 s.f. 10.3
Warehouse 7,600 s.f. 1 space per 1,000 s.f. 7.6
17.9 Architectural Building Elevations: Architectural Elevations will need further review to ensure that they are consistent with the Zoning Code. The applicant has provided photos of an existing building that represent how
the building will look. 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
/
5 February 2020
HEDRA, City of Hastings
101 4th Street E.
Hastings MN 55033
RE: Onyx Industries Development, 2951 Lightbourn Court
To the HEDRA Council,
The purpose of this correspondence is to introduce the plans of Onyx Industries to expand in Hastings specifically at 2951
Lightbourn Court. Onyx is proposing to build an industrial manufacturing facility on this now empty lot. I would like to
request your review of our proposal for participation in the City of Hastings Land Credit Program.
Onyx Industries is a manufacturer of products for Industrial Machinery that are used to immediately communicate machine
state to plant personnel through a visually color coded industrial indicator light. These devices are commonly used to optimize
plant floor productivity. Onyx Industries also engineers electrical control systems for custom machinery. We design, build and
deploy electrical controls systems for OEM’s and other clients who build machinery. This often involves programming PLC’s,
Motion Systems and User Interfaces tailored for use on custom equipment. We have experienced good growth the last 4 years
and see this continuing as we penetrate new markets and clients.
It is our intention to position ourselves better for growth. A building designed for manufacturing will enhance our efficiency.
Build Concept Summary
Our new building concept is based loosely on the Mass Finishing Inc. facility in Howard Lake MN. Onyx Industries builds
controls systems for MFI. Images of their building are included. The size, layout, and simple efficiency of their facility (with
some modifications) works well for our needs. To summarize the goals of the build:
●10,700 square foot facility on a 76x140 perimeter
●18-20’ high walls
●Asymmetrical 2-Unit facility (owner occupancy in unit 1, tenant in unit 2).
●3 Offices, 1 lunchroom/conference room, reception area, mens/womens rooms per unit
●Finished Mezzanine above offices
●Post Frame Construction with attractive design presentation to the street view
●200A 3~ Power at each Unit
●Manufacturing Floor approximately 50x76 for each unit
●10-15 parking spaces depending on layout
Please see the attached concept layouts of the building, the building superimposed on the 2951 Lighthouse Court Lot, and also
images of Mass Finishing’s Building where we have gotten inspiration for our build concept.
Thank you for your review of this initial proposal. We look forward to the opportunity to continue to grow in and with the City
of Hastings.
Best Regards,
Lee Clore
Owner & Controls Designer
Onyx Industries
2347 Commerce Drive
Hastings, MN 55033 USA
651.260.7115 ph
www.onyx-industries.com
lee@onyx-industries.com
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