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HomeMy WebLinkAboutIV.B - Industrial Park Sale - Simply Secure HEDRA Memorandum To: HEDRA From: John Hinzman, Community Development Director Date: November 12, 2020 Item: Approve Preliminary Land Credit Sale and Concept Plan – Simply Secure Storage – Lot 3, Bock 2, Hastings Industrial Park No 7 – 2030 Spiral Blvd (2.58 acres) REQUEST: Chad Smurawa of Simply Secure Storage 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 $62,776.52. Preliminary approval will reserve the property through development of the development agreement. 2) Concept plan review to construct six storage buildings totaling 45,420 s.f. Simply secure would construct two mini storage buildings and four business storage buildings. Conceptual Plans have been provided. Final Site Plan and Special Use Permit 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 December 7th meeting. BACKGROUND INFORMATION: History: The Commission reviewed a concept plan for sale and development at the October 8th meeting. Mr. Smurawa received similar approvals for development on the subject property in 2019, but relocated the facility to Lightbourn Court due to the presence of a clean fill stockpile. The stockpile has since been removed and Mr. Smurawa seeks to expand his storage facility to a second lot. 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 allowed upon Special Use Permit approval of the City Council. Existing Condition: 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 $1,102,960.74 Construction Credit $110,296.07 (10% of building value) Cash Due Upon Transfer $62,776.52 (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. Land Credit Requirements: 1. Complete construction of a 28,740 s.f. business storage building and 16,680 s.f. of mini storage buildings building with an estimated value of at least $1,102,960.74 within one year of executed agreement. 2. Payment of $62,776.52 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 and Special Use Permit 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 require approval of a Special Use Permit by the City Council. 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 Existing Site Proposed Site Simply Secure Storage 3001 Lightbourn Court Hastings Industrial Park Invested in Hastings • Partnered with Hastings very own legend Ron Guck to install 4 Birdhouses onsite • Donation to expanded Hastings Family Service Food Shelf • Certified ‘Bee Friendly’ onsite habitat • Participant in 2020 City of Hastings Trick or Treat Event • Proud Chamber of Commerce Member What’s Next? Consideration to purchase Lot 3 in Hastings Industrial Park • Original site approved for Simply Secure Storage • Invest approximately $1,400,000 in Lot 3 • Fulfill original plan to construct business storage…Lot 11 not conducive to construction of business storage • Business units of this type do not exist in East Metro • Business storage on Lot 3 will serve as berm between eastern zoned future apartments Current Site Update • 24,000 sq. ft. constructed on Lot 11 • Construct additional 12,000 sq. ft. in spring 2021 on Lot 11 • Additional $350,000+ investment in spring 2021 • $1,000,000+ already invested in the site with taxes payable in 2021 • We delivered on our commitments A Few More Things… • Eric, Vanessa and I are hands on owners. We take pride in our projects and intend to continue to maintain a business that the neighborhood is proud of • Warm neighborhood reception…We have gotten to know many neighbors as we work onsite. Neighbors that frequent the trails have complimented us on the aesthetics of our project/landscape...a few have asked me for shrub suggestions! • Thank You for the warm Hastings Welcome and for giving us the opportunity to be part of the community! Click Below to Take a Virtual Tour of Simply Secure Storage (Press ‘Ctrl’ button click and click on picture below to launch Virtual Tour) FIELD VERIFY ALL SITE DIMENSIONS AND BEARINGS Chad Smurawa Site Plan IN D I V I D U A L S T O R A G E IN D I V I D U A L S T O R A G E BU S I N E S S S T O R A G E BU S I N E S S S T O R A G E BU S I N E S S S T O R A G E BU S I N E S S S T O R A G E