HomeMy WebLinkAboutIV.D - Report HEDRA - Quality One Woodwork
HEDRA Memorandum
To: HEDRA
From: Eric Maass, Economic Development Coordinator
Date: April 8, 2021
Item: Approve Preliminary Land Credit Sale and Concept Plan – Quality One Woodwork, LLC – Lot 1
Bock 3, Hastings Industrial Park No. 7 - (1.8 acres) and Outlot B, Hastings Industrial Park No. 2
– (0.23 acres).
REQUEST:
Quality One Woodwork LLC is seeking to purchase Lot 1 Bock 3, Hastings Industrial Park No. 7 - (1.8
acres) and Outlot B, Hastings Industrial Park No. 2. The following actions are requested:
1) Preliminary approval of a land credit for property acquisition. Land credits would reduce the
price of the land to $1.00. That figure is based on a construction credit of $350,000.00.
Preliminary approval will reserve the property through development of the development
agreement.
2) Concept plan review to construct a building totaling 50,000 SF. Quality One Woodwork
would construct a building addition that would include primarily warehousing space as well as
some production space. The structure would be similar in nature to the building that the business
currently occupies. A conceptual plan has been submitted. Final Site Plan approval will be
necessary prior to execution of the land credit agreement.
RECOMMENDATION:
Staff recommends approval of the land credit and concept plan for the proposed building addition. The
City Council will consider similar action at its meeting on April 19, 2021 meeting.
While no building would be constructed on the parcels to be sold, those parcels are necessary
to facilitate the building expansion to support parking and stormwater requirements. Staff
analyzed the proposed total building square feet after expansion (150,000) and total proposed
property ownership (535,987 sf) and the company would achieve 28% building coverage
meeting the 20% building coverage minimum required to utilize the land for a dollar public
subsidy program.
BACKGROUND INFORMATION:
History:
Quality One Woodwork considered an expansion in 2018 however the available workforce at that time
limited their ability to execute on that expansion. The business has experienced strong growth through
the covid-19 pandemic as a result of strong residential renovation and building market. The business
currently has a purchase option on PID 19-32006-03-010.
Comprehensive Plan Classification:
The property is guided for Industrial and Utility Use per the 2040 Comprehensive Plan. The proposed use
as a business is consistent with the Comprehensive Plan.
Zoning Classification:
The property is zoned I-1 – Industrial Park. A woodworking production and warehousing facility such as
this would be permitted within the I-1 Industrial Park district provided all materials, goods, and products
are stored indoors and any outdoor storage of vehicles or equipment would require to be screened. This
project would be required to go through the formal site plan entitlement process.
Existing Condition:
The proposed site is flat with a few trees. 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 Industrial Property I-1 – Industrial Park Industrial
South Multifamily housing. R-3 PRD Medium Density
Residential
West Industrial Property – Minnesota
Coaches
I-1 – Industrial Park Industrial
Site Plan:
Red parcels = Quality Woodwork parcels
Blue parcels = City owned parcels
Yellow outline = proposed building expansion
BUSINESS SUBSIDY ANALYSIS:
Ownership: City City Quality One Woodwork
PID 19-32006-
03-010
PID 19-32001-
00-021
PID 19-32001-06-041 / 19-
32001-06-030
Property Size 1.80 acres 0.23 acres 2.91 acres
Property Market
Value ($1.54/SF)
$120,748.32 $15,404.62
Estimated
Building Value
$3,500,000
Construction
Credit
$350,000 (10% of building
value)
Jobs Credit N/A N/A N/A
Cash Due Upon
Transfer
$1.00 (construction credit
exceeds market value)
Justification for Subsidy:
1. Conversion of tax-exempt property to a tax paying entity.
2. Large expansion of an existing employer.
3. Creation of an estimated 25 full time employment opportunities.
Land Credit Requirements:
1. Complete construction of a building that is at least 50,000 square feet with an appraised value of
at least $3,500,000.00 within one year of executed agreement.
2. Payment of $1.00 upon transfer of the property.
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
Quality One Woodwork 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.
Use:
The proposed use is a permitted use within the I-1 Industrial Park. The total amount of building coverage
would occupy 28% of the total proposed acreage after acquisition of the city owned land.
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 as proposed.
Parking:
Parking for the proposed business will be required to conform with City Ordinance 155.09 Parking and
Loading Requirements. Staff will review for adherence to parking requirements at the time of site plan
review.
Architectural Building Elevations:
Elevations submitted are similar in nature to the existing structure that is being added onto and appears
acceptable. Architectural Elevations will be officially reviewed to ensure that they are consistent with the
Zoning Code at the time of site plan application.
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
• Site Plan Sketch & Building Elevations
LOCATION MAP
Spiral Blvd
E 31st St.
Commerce Dr.
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Lot 1
Outlot B