HomeMy WebLinkAboutReport HEDRA - Miller Electrical
HEDRA Memorandum
To: HEDRA
From: Eric Maass, Economic Development Coordinator
Date: March 11, 2021
Item: Consider Preliminary Concept Plan – Miller Electrical –Lot 1 Bock 2, Hastings Industrial
Park No. 7 - (2.0 acres).
REQUEST:
Sam Ruotsinoja of Miller Electrical is seeking to purchase Lot 1, Block 2, Hastings Industrial
Park No. 7 through the Land For A Dollar program. The following actions are requested:
1) Concept plan review to construct a building totaling at least 17,000 Square Feet.
Miller Electrical would construct one building that would include both office (3,000 sq ft)
and garage/warehouse space (14,000 sq ft). A conceptual plan has been submitted. Final
Site Plan approval will be necessary prior to execution of the land credit agreement.
RECOMMENDATION:
Staff does not have a recommendation at this time pending HEDRA feedback on possible
requirements for lot coverage as well as existing expansion space within the current Miller
Electrical building and the potential for development of the southern half of the current site.
BACKGROUND INFORMATION:
History:
Miller Electrical is currently located at 2911 Enterprise Drive which has a 20,328 square foot
building on it. Miller Electrical currently leases out a portion of that building.
HEDRA has not considered this specific project in the past. Miller Electrical has previously
developed two buildings within the industrial park and is looking to develop a new building to
accommodate company growth.
Comprehensive Plan Classification:
The property is guided for Industrial and Utility Use per the 2040 Comprehensive Plan. The
proposed use as a contracting service business is consistent with the Comprehensive Plan.
Zoning Classification:
The property is zoned I-1 – Industrial Park. The electrical contracting business would be considered
a permitted use in the I-1 district . This project would be required to go through the formal site plan
entitlement process.
Existing Condition:
The proposed site is flat and the lot was previously rough graded for development.
Adjacent Zoning and Land Use:
The following land uses abut the property:
Direction Existing Use Zoning Comp Plan
North Vacant – Future Industrial I-1 – Industrial Park Industrial
East Vacant – Future Industrial I-1 – Industrial Park Industrial
South Industrial Property I-1 – Industrial Park Industrial
West Industrial Property I-1 – Industrial Park Industrial
Property Acquisition Options:
Lot 1 Block 2 Lot 1 Block 2 (reduced to 1.5 acres)
Property Size 2.0 acres 1.5 acres
Property Market
Value ($1.54 per S.F)
$134,164.80 $100,623.60
Estimated Building
Value
TBD TBD
Construction Credit 10% of building value 10% of building value
Jobs Credit TBD TBD
Cash Due Upon
Transfer
Market value less
construction and jobs credit or
$1.00 if Land For A Dollar
Program based on HEDRA
feedback.
Market value less construction and
jobs credit or $1.00 if Land For A
Dollar Program based on HEDRA
feedback.
Possible Justifications for a Business Subsidy:
• Conversion of tax-exempt property to a tax paying entity.
• Growth of jobs including office staff and shop employees. A specific amount has not
been set.
Land Credit Requirements:
1. Complete construction of a building of a specified size and appraised value within one
year of executed agreement.
2. Payment of remaining market value due upon transfer or $1.00 upon transfer of the
property. If $1.00 then the terms of the remaining balance and credits would be
memorialized in the development agreement.
3. Remain in business in Hastings for at least five years from the date of occupation.
4. Obtain all required zoning entitlements and approvals for construction of the business.
5. If the above requirements are not met, the owner must repay the City a prorated share of
the subsidy.
CONCEPTUAL SITE PLAN REVIEW
Miller Electrical. has submitted a conceptual site plan 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.
Architectural Building Elevations:
Buildings constructed on a corner lot have added requirements for higher level architecture/materials
along building sides that face public right of way.
The applicant has submitted a black and white image of an example building found online that is
similar to the type of building they envision constructing. Architectural Elevations will need further
review to ensure that they are consistent with the Zoning Code.
Use:
The proposed use is a special use within the I-1 Industrial Park. As proposed the building would
occupy 19.5% of the 2.0 acre parcel.
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 for the building proposed on Lot 1 Block 2.
Parking:
Parking for the proposed business must conform with City Ordinance 155.09 Parking and
Loading Requirements. Staff will review parking conformance during site plan review.
Landscape Plan:
A Landscape Plan will need to be submitted and conform to ordinance requirements.
Grading, Drainage & Utility Plans:
Grading, Drainage and Utility Plans will need to be submitted and reviewed by the Public Works
Department.
ATTACHMENTS:
• Location Map
• Letter of Intent from Applicant
• Sketch Site Plan
• Example Building Elevation
LOCATION MAP
Current Site And Expansion Opportunity
Lot 1
Spiral Blvd
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Letter of Intent
Sketch Site Plan
Example Building Elevation