PLANNING REPORT CITY OF EAGAN. APPLICANT: Wyatt Sharing & Caring, LLC HEARING DATE: January 27, 2015

Transcription

1 PLANNING REPORT CITY OF EAGAN REPORT DATE: January 21, 2015 CASE: 12-CG APPLICANT: Wyatt Sharing & Caring, LLC HEARING DATE: January 27, 2015 PROPERTY OWNER: Gift of Mary, LLC APPLICATION DATE: December 17, 2014 REQUEST: Comprehensive Guide Plan Amendment PREPARED BY: Michael J. Ridley, AICP LOCATION: 3430 Hwy. 55 COMPREHENSIVE PLAN: SA-O/S, Special Area-Office/Service ZONING: A, Agricultural SUMMARY OF REQUEST The applicant is requesting a Comprehensive Guide Plan Amendment to change the land use designation from SA-O/S (Special Area-Office/Service) to SA-IND (Special Area-Industrial), upon approximately 33 acres located at 3430 Hwy. 55, south of Lone Oak Road and north of Hwy. 55, adjacent to the municipal border of Eagan and Inver Grove Heights. AUTHORITY FOR REVIEW The city s Comprehensive Guide Plan was prepared pursuant to Minnesota Statutes, Section As defined by statute, the Land Use Plan is a guide and may be amended from time to time as conditions change. The city s Guide Plan is to be implemented by official controls such as zoning and other fiscal devices. The creation of land use districts and zoning is a formulation of public policy and a legislative act. As such, the classification of land uses must reasonably relate to promoting the public health, safety, morals and general welfare. When a change to a city s Comprehensive Guide Plan is requested, it is the city s responsibility to determine if the change is in the best long-range interests of the city. The standard of review of a city s action in approving or denying a Comprehensive Guide Plan amendment is whether there exists a rational basis. A rational basis standard has been described to mean having legally sufficient reasons supportable by the facts which promote the general health, safety and welfare of the city.

2 Planning Report Wyatt Sharing & Caring, LLC. January 27, 2015 Page 2 BACKGROUND/HISTORY Zoning History The subject property is currently zoned Agricultural. The PD zoning was adopted in 2002 with approval of development plans for a mixed use project consisting of a school, community center, and athletic fields with on-site housing. The property was platted as a single parcel at that time, consolidating multiple parcels into one. However, the planned mixed use development did not come to fruition and upon expiration of the Planned Development Agreement in 2008 the City initiated and implemented a rezoning back to Agricultural. Comprehensive Land Use Guide Plan Ryland Homes submitted a Comprehensive Guide Plan Amendment application in 2014 requesting to change the land use designation from O/S Office/Service to LD Low Density Residential. The Advisory Planning Commission recommended denial of that application on October 28, The applicant subsequently withdrew the application before the request went before the City Council. The land use designation on this property is currently Special Area - Office/Service. The Special Area Plan guides future redevelopment away from residential use and toward office, commercial and institutional uses. The City s first Comprehensive Guide Plan was prepared in 1974 and designated the area as medium density residential (initially 6-12 units/acre and later 0-6 units/acre). The planning for transition of the area to commercial, office and institutional uses began with the adoption of the Rural Residential designation of the area in In later updates to the Comprehensive Guide Plan, the area was revised and incorporated into the Northeast Special Area. Surrounding Area The site is bounded on the north by Lone Oak Road and to the south by Hwy. 55, effectively separating this site from adjoining development to the north and south. South of Hwy. 55 is single-family residential development. The property to the north of Lone Oak Road contains some office uses and some vacant land. To the west is rural residential development consisting of single-family homes on large lots, zoned Agricultural and guided the same as the subject site Special Area with Office/Service. The east boundary of the site is also the municipal boundary between Eagan and Inver Grove Heights. The property in Inver Grove Heights is zoned Agricultural and Limited Industrial, and is guided Low-Medium Density Residential and Industrial Office Park. EXISTING CONDITIONS The land is wooded with gently rolling topography with areas of steep slopes, and contains some wetland areas. The site has a topographical change of over 90 feet. The northern one-third of the site generally slopes to the north and the southern two-thirds slopes to the south. An abandoned gas pipeline runs though the property from the northwest to the southeast. Access to the site is provided from both Lone Oak Road and a frontage road/highway 55.

3 Planning Report Wyatt Sharing & Caring, LLC. January 27, 2015 Page 3 SURROUNDING USES The following existing uses, zoning, and comprehensive guide plan designations surround the subject property: Existing Use Zoning Land Use Designation North Office; vacant PD, Planned Development SA-MO, Special Area-Major Office East (Inver Grove Heights) Single-Family Residential; Industrial/Manufacturing A, Agricultural; I-1, Limited Industrial Low-Medium Residential; Industrial Office Park South Single-Family Residential R-1, Single-Family LD, Low Density Residential West Single-Family Residential A, Agricultural SA-O/S, Special Area- Office/Service EVALUATION OF REQUEST PROPOSAL The applicant is requesting an amendment to change the land use designation of this site within the Northeast Special Area from O/S, Office/Service, to IND, Limited Industrial with the intent to develop the property with office/warehouse uses consistent with I-1 zoning. The Concept Sketch Plan submitted with the application shows a configuration of three office/warehouse buildings that basically split the site north and south. Two buildings would be accessed via Lone Oak Road, across from Ames Crossing and the largest of the three buildings would be accessed from Highway 55 via the existing frontage road. The submitted narrative states the applicant is in general agreement with the established land use principals for the area, generally, and the subject site, specifically. The applicant believes the Comprehensive Plan description for Industrial Manufacturing, warehousing and goods movement/distribution better suits the site for the purposes of generating commerce and jobs. The applicant further notes that the pure office market is experiencing vacancy rates at over 20% while the office/warehouse market is at 6% in this submarket. The applicant also suggests that providing development flexibility that is still consistent with adjacent land uses will ensure the development of the site. It should be noted that at the present time, there is no adopted plan for a future street or trail network within this area, although the Northeast Special Area Plan identifies the need to develop a roadway plan for this area.

4 Planning Report Wyatt Sharing & Caring, LLC. January 27, 2015 Page 4 ENVIRONMENTAL IMPACTS Topography/Grading This 33 acre site is currently undeveloped and includes three single family homes at the southwestern portion of the site, and one at the northwest corner. The existing site is lightly wooded at the northern one-third and southern one-third of the property and more heavily wooded in the middle one-third. There are large variations in topography, and elevations range from 818 in the southeast corner to 910 in the east-central portion of the site. The middle one-third has the steepest slopes with grades up to 17%. The majority of the site would be disturbed for the installation of drives/parking, utilities, buildings, and storm water features. Trees/Vegetation Development of the site will be subject to the City s Tree Preservation Ordinance. The site has scattered areas of trees with a relatively even distribution of several species of trees including box elder, aspen, birch, black cherry, oak, ash, spruce, and cottonwood. A tree inventory will be required at the time of subdivision. Removal of significant trees beyond the Tree Preservation Ordinance allowable amount is subject to mitigation. Storm Drainage The entire site lies within Drainage District G (as designated in the City Storm Water Management Plan 2007). Currently, the northern portion drains to the northwest, then enters a swale and is directed to the southwest toward City pond GP-3, located approximately 350 feet west of the site on the north side of Highway 55. The southern portion currently flows to the south and enters both City ponds GP-3 and GP-3.5. This development proposes to construct a storm sewer system and stormwater retention ponds adjacent to the existing wetlands to accommodate the storm water runoff. There are a number of wetlands on site. In accordance with City Code 11.67, a Certified Wetland Delineator will need to prepare a delineation and assessment (via MNRAM) report for the wetlands. Any development will need to be in accordance with the State Wetlands Conservation Act, subject to the codified post-construction storm water requirements for storm water volume and pollutant control and subject to MN Department of Transportation storm water permit requirements for discharge to Highway 55 right-of-way. Water Quality Any development of the site will need to comply with Post Construction Requirements (City Code 4.33) for stormwater management and surface water quality. These regulations include: design standards for volume control and reduction; total phosphorus control; total suspended solids control; oil and grease control; and runoff rate control performance standards. They also provide for: minimization of impervious surface area and maximization of infiltration and retention; acceptable complementary stormwater treatments; pond requirements; regional ponding; and maintenance of private stormwater facilities. Airport Noise Compatibility The City of Eagan considered airport noise as a factor in its Comprehensive Guide Plan and has subsequently adopted an Aircraft Noise Zone Overlay District in the land use regulations of the City Code, in accordance with the Metropolitan Council s 2030

5 Planning Report Wyatt Sharing & Caring, LLC. January 27, 2015 Page 5 Transportation Policy plan, Appendix M (Land Use Compatibility Guidelines for Aircraft Noise). The subject site is located within Airport Noise Policy Zone 4 and the one-mile Zone 4 Buffer. A portion of the property along the western edge of the site is within Zone 4; the majority of the site is within the Zone 4 Buffer. Within Zone 4, industrial uses are considered compatible. INFRASTRUCTURE IMPACTS Streets/Access/Transportation Public street access is proposed via Lone Oak Road (CSAH 26) (a two-lane, undivided, minor arterial roadway) to the north, and a frontage road connecting to Trunk Highway 55 (a four-lane divided highway) to the south. The Trunk Highway 55 Access Management Plan, approved by the City Council and MnDOT in June of 1999, documents the closure, restriction, consolidation and other modifications to the public and private accesses along Highway 55. Access management is needed to preserve the main function of mobility on Highway 55, which is classified as a Principal Arterial (same as an interstate highway) in the Metropolitan Transportation System. The Plan also identifies future frontage roads necessary to provide and maintain adequate access locations to the adjacent parcels, and depicts a Highway 55 frontage road along the entire south edge of the site to the Eagan/Inver Grove Heights border. The concept plan for this proposed development does not include the extension of the frontage road to the east property line. With planned improvements at Highway 55 and Argenta Trail (County Road 63), discussions with Mn/DOT, Dakota County, and the City of Inver Grove Heights will be necessary to determine if the frontage road is still the preferred means to provide public street access to the properties between this parcel and Argenta Trail. If so, the developer should extend the frontage road to the east property line. Easements/Right-of-Way Sufficient right-of-way was previously dedicated for Lone Oak Road and Highway 55. There is a 40 foot gas pipeline easement running from the west-central portion of the site to the southeast corner of the site. This pipeline has been abandoned and the applicant can work with the gas company to remove the pipe and vacate the easement. Utilities Trunk and lateral water main and lateral sanitary sewer of sufficient size, depth, and capacity is available for connection and extension with development of the property. Sanitary sewer District N, as designated in the City s Comprehensive Sanitary Sewer Plan, serves the entire site. Sewer is available at the southwest corner, and water main is available at the northwest and southwest corners of the site. The water main should be extended from Highway 55 to Lone Oak Road, to the east property line along Lone Oak Road and be constructed to City standards for public water main and covered with public drainage & utility easement. The water main and sanitary sewer may need to be extended to the east property line if requested by the city of Inver Grove Heights. A utility extension to a municipal boundary is typically financed by the requesting party.

6 Planning Report Wyatt Sharing & Caring, LLC. January 27, 2015 Page 6 The existing structures should be removed at the time development commences. All well and septic systems within the development should be abandoned in accordance with City and County standards. COMPREHENSIVE LAND USE IMPACTS Land Use Designations Within the portion of the Northeast Special Area bounded by Lone Oak Road to the north and Hwy. 55 to the south, the eastern part is identified for O/S, Office/Service land uses. Limited Business, Neighborhood Business and Research and Development are zoning classifications that would be consistent with the O/S land use designation. Additional policies within the Northeast Special Area Plan state that the City will not support piecemeal development that would isolate existing residential uses, that rezonings would be supported in areas of sufficient size to provide a cohesive development, and that new development shall respond and strive to retain the natural features of the area.... While the subject site leap-frogs from development to the west, the 33 acre site is large enough to produce a cohesive free-standing development that will not undermine future development opportunities to the west. Density The Concept Sketch Plan shows three individual office/warehouse buildings on the 33 acre site totaling approximately 285,000 SF resulting in a building coverage of approximately 20%. The Industrial zoning allows a building coverage of 35%. Comprehensive Guide Plan Goals and Policies The City s Comprehensive Guide Plan incorporates goals and policies: General Land Use Policies These include several statements in regard to protecting natural site amenities and open spaces, managing storm water, creating accessible and connected developments, encouraging walking and bicycling, ensuring sidewalks and trails to connect community places and enable movement by walking and bicycling. Special Area Plan The site is located within the Northeast Special Area. The Northeast Special Area is bounded by the municipal border on the north and east sides, Hwy. 55 on the south side and Hwy. 149 to the east. The area between Lone Oak Road and Hwy. 55 had a separate Special Area plan until 2010 when the two were combined into the present Northeast Special Area in the 2030 Comprehensive Guide Plan. The Northeast Special Area Vision Plan provides statements to guide future development. These include long-term residential uses are not desirable due to the large amount of aircraft noise and high traffic volumes. Also, this area is a major entrance into the community, so any development should present an attractive entry image, especially along major roadways like Trunk Highway 55, and development south of Lone Oak

7 Planning Report Wyatt Sharing & Caring, LLC. January 27, 2015 Page 7 Road will require a roadway plan to create a functioning circulation system and to consolidate accesses. The following policies are contained in the Northeast Special Area Plan: The City expects the study area to develop as business park, research and development and neighborhood business uses. Existing residential uses are considered transitional. The City will not support rezoning that would result in piecemeal; lot-by-lot redevelopment or leap-frog development that would result in isolation of existing residential uses. New development shall respond and strive to retain the natural features of the area including wetlands and mature vegetation. Due to the area s proximity to the airport and the fact that single family uses are considered transitional, the City shall discourage any additional residential development, including further subdivision of any of the existing residential property. New development within the study area shall incorporate sound attenuating construction techniques as suggested by the Metropolitan Council. New Business Park and Research and Development uses will utilize materials and design features consistent with City Code standards and compatible with the Laukka-Beck Planned Development to the north. In 2005, a land use study of Northeast Eagan was undertaken, and recommended the area north of Lone Oak Road be retained for non-residential uses and included the key findings of which the following may be considered applicable to the area south of Lone Oak Road as well. These findings are reiterated in the Northeast Special Area Plan. The City of Eagan discourages residential development in areas directly affected by aircraft noise. Airport noise makes this area incompatible with housing. (Zone 4 and Zone 4 Buffer) It is in the best interest of the City to retain the area for commercial/industrial development. It is a policy matter for City officials to determine whether the requested change from Office/Service to Industrial is reasonable given the City s general vision for the area. Compatibility The vision for future development of this area has remained consistent since the adoption of the 1994 Rural Residential small area plan. Future development of low-density residential uses was determined to be incompatible in this area because of the airport flight paths and noise impacts. Office, institutional and neighborhood commercial uses were identified as uses that would be appropriate and compatible with the surrounding area and infrastructure.

8 Planning Report Wyatt Sharing & Caring, LLC. January 27, 2015 Page 8 Commercial development in the area began with the Oakview Center Planned Development in 1999 east of the intersection of Hwy. 55 and Lone Oak Road. In keeping with City policies, ongoing commercial development has proceeded in an eastward fashion, with the Cerasis (2007) and Benerotte (2013) office buildings. From a zoning standpoint, exterior building material standards differ between zoning categories. Zoning districts compatible with Office/Service require a higher percentage of Class I finish materials (65%) versus zoning districts compatible with the IND land use designation which require 65% of two different Class I or Class II materials. The City Code states: New constructed buildings shall incorporate the classes of materials as follows: 1. Buildings within LB, NB, CSC, RD and BP zoning districts shall use at least two Class I materials and the building must be finished with at least 65 percent Class I materials, not more than 35 percent Class II or Class III materials, and not more than ten percent Class IV materials. 2. Buildings within GB, I-1 and I-2, zoning districts and located 800 feet or less from a county, state or federal right-of-way shall use at least two different Class I or Class II materials and the building must be finished with at least 65 percent Class I or Class II, not more than 35 percent of Class III and Class IV materials; in no case shall Class IV materials exceed ten percent. Physical Suitability The subject site has varied topography with areas of steep slopes, woodlands and wetlands. Any development will be subject to City ordinances in regard to tree preservation, wetland protections, stormwater management and water quality. The physical suitability for the existing O/S land use or proposed Industrial land use varies with the type and scale of development. Where large footprint buildings may be better suited to flat open sites, creative design will be necessary in order to maintain the site s integrity and natural features. Land Supply Overall, 291 acres (1.4%) are presently designated O/S and 1,844 acres (8.6%) in the City currently have the IND land use designation. Almost all of the Office/Service land is located between Lone Oak Road and Highway 55 within the Northeast Special Area. Taking 33 acres out of the Office/Service land supply would reduce the available land for Office/Service development by 40%. Changing 33 acres from O/S, Office/Service, to IND, Industrial, would not have a significant impact on the allocation of total land in the Industrial land use category. It is fair to note that office and a limited amount of retail/service are both also permitted uses in the Industrial zone.

9 Planning Report Wyatt Sharing & Caring, LLC. January 27, 2015 Page 9 PARKS AND RECREATION SYSTEM Parks The site is within Park Service District 1 (PSD 1). The subject site is on a geographic island in terms of its proximity to the balance of the Eagan and the parks system. The closest existing neighborhood park is Bur Oaks Park. Due to the area s proximity to the airport, the fact that single family uses are considered transitional and the City stated position is to discourage any additional residential development, including further subdivision of any of the existing residential property there is no need for a park facility in this area. Trails The City trail plan includes an extension of the City trail within the Lone Oak Road corridor immediately to the north of the site. A connection to this trail would allow access to the City wide trail system. An additional segment extending to the 149/55 intersection would also provide access to the existing trail system. In 2010, Dakota County adopted a Greenway Plan which identifies a future Greenway trail in Inver Grove Heights, within ¼ mile to the east of the subject site. The future development of the Greenway Trail corridor may support the need and creation of additional connector trails. SUMMARY OF FINDINGS General Considerations The applicant is requesting a change in land use designation from Special Area/Office Service to Special Area/IND, for approximately 33 acres currently zoned Agricultural and located between Lone Oak Road and Hwy. 55, adjacent to the municipal border between Eagan and Inver Grove Heights. The property contains four existing single-family homes. An abandoned gas pipeline (and easement) runs through the property from northwest to southeast. The Northeast Special Area Plan identifies the need to develop a roadway plan for the area between Lone Oak Road and Hwy. 55. At present, there is no adopted plan for a future street or trail network within this area. Environmental Impacts A majority of the site would be disturbed for the installation of buildings, drives/parking areas, utilities, storm water features and retaining walls may be necessary in some areas to accommodate any development. Development of the site is subject to the City s Tree Preservation Ordinance (Sec , Subd. 12.1).

10 Planning Report Wyatt Sharing & Caring, LLC. January 27, 2015 Page 10 There are a number of wetlands on site. A wetland delineation and assessment will need to be prepared by a qualified professional, and development the site is subject to State Wetlands Conservation Act. Development of the site will need to comply with Post Construction Requirements (City Code 4.33) for stormwater management and surface water quality. There are large variations in topography with elevations ranging from 818 to 910, and areas of steep slopes with grades up to 17%. The site is located within the Airport Noise Policy Zone 4 and the one-mile Zoned 4 Buffer. Industrial uses are considered compatible within Zone 4, and the one-mile Zone 4 Buffer. Infrastructure Impacts Street access is available via Lone Oak Road to the north, and a frontage road connecting to State Hwy. 55 to the south. Sufficient right-of-way dedication for Lone Oak Road and Hwy. 55 appears to have been previously satisfied. The Trunk Highway 55 Access Management Plan (1999) identifies frontage roads along the entire south edge of the site to the Eagan/Inver Grove Heights border. The existing gas pipeline through the site has been abandoned; the pipeline easement remains. Trunk and lateral water main and sanitary sewer are available for connection and extension with development of the property. All well and septic systems within the site should be abandoned in accordance with City and County standards at the time of development. All existing structures should be removed at the time of development. Comprehensive Land Use Impacts SA/IND, Special Area/Limited Industrial is a land use category that provides for manufacturing, warehousing and goods movement/distribution. Industrial zoning provides for office and a limited amount of retail service as permitted uses.

11 Planning Report Wyatt Sharing & Caring, LLC. January 27, 2015 Page 11 The City s Comprehensive Guide Plan incorporates themes of sustainability, active living and connectivity. Goals and policies relative to the request are contained in several sections of the Comprehensive Guide Plan, including the Northeast Special Area Plan. It is a policy matter for City officials to determine whether the conclusions of the 2005 Northeast Eagan Land Use Study are applicable today for the area south of Lone Oak Road. Exterior building material standards differ between zoning categories. Zoning districts compatible with Office/Service require a higher percentage of Class I finish materials than zoning districts compatible with the IND land use designation. The proposed amendment would reduce the underutilized Office/Service land supply by 40%. Park and Recreation System The site is located within Park Service District 1 (PSD 1), with the closest neighborhood park being Bur Oaks Park. Due to the area s proximity to the airport, the fact that single family uses are considered transitional and the City stated position is to discourage any additional residential development, including further subdivision of any of the existing residential property there is no need for a park facility in this area. The City trail plan includes an extension of the City trail within the Lone Oak Road corridor immediately to the north of the site. A connection to this trail would allow access to the City wide trail system. An additional segment extending to the 149/55 intersection would also provide access to the existing trail system. The parcel is located within ¼ mile the proposed Dakota County Greenway Trail system within Inver Grove Heights east of the subject site. ACTION TO BE CONSIDERED To recommend approval of a Comprehensive Guide Plan Amendment to change the land use designation from SA-O/S (Special Area-Office/Service) to SA/IND (Special Area/Industrial) upon approximately 33 acres located at 3430 Highway 55, south of Lone Oak Road and north of Highway 55, adjacent to the municipal border between Eagan and Inver Grove Heights.

12 HOLIDAY LN ROLLING HILLS DR LOUIS LANE WATERS RD LONE OAK DRIVE Location Map WY. NO.149 Project Name: Wyatt Sharing and Caring Request: Comprehensvie Guide Plan Case No: 12-CG C.S.A.H. NO. 26 (LONE OAK RD.) STATE HOLIDAY LN COURTHOUSE LN TRUNK HWY. NO. 55 Subject Site JOYCE CT STATE TRUNK HWY. NO. 149 RANDOM RD RITA CT SALLY STATE TRUNK HWY. NO CIRCLE CHAPEL LANE Lone Oak Rd BORCHERT LN WREN LN CHAPEL LANE ROLL LN. Yankee Doodle Rd 35E North Park Park HILLSIDE CT H KUTOFF CT ILLSIDE DR ROLLING HILLS DR Bur Oaks Park ROLLING 77TH HILLS DR RED OAK CT RED OAK DR RED OAK DR STREET ROLLING RED OAK DR ROLLING HILLS DR HILLS PL ROLLING HILLS CT WEST BLACK OAK DR OAK DR BLAC K ROLLING HILLS CR Diffley Rd Cliff Rd Map Area Extent Legend PARCELS Buildings Parks City Boundary Feet ,000 2,000

13 Ames Crossing Road HW Y5 5 CO. RD. 26 Lone Oak Road rive Louis Lane HW Y 55 HW Y 55 Hop ed Wyatt Sharing and Caring This map is for reference use only. This is not a survey and is not indtended to be used as one. Aerial photo-spring Feet

14 City of Eagan, Minnesota Application for a Comprehensive Plan Amendment (CPA) 3430 Highway

15 Project Snapshot Applicant: Jim Deanovic Request: Comprehensive Plan Amendment Map and minor text changes Location: 3430 Highway 55 Eagan, MN Existing 2030 Land Use: PID: Proposed 2030 Land Use: Legal: Lot 1 Block 1 Gift of Mary Existing Zoning: Acres: Proposed Zoning: I-1 Introduction & Background Office Service Limited Industrial Agricultural (A) The Subject Site is located in the northeast corner of the City and has been the subject of various development proposals over the past several decades. While multiple development groups have attempted to obtain entitlements and develop the site, ultimately, the land use approvals and eventual development has yet to occur. As a result of the failed development attempts, the site continues to be largely vacant but continues to be a desirable site for certain land uses. One of the previous development proposals included platting of the Subject Property that ultimately resulted in a Final Plat being recorded at the County. As such, some of the utility and infrastructure easements have already been dedicated as shown on the attached Exhibit 1. The Plat included the dedication of an additional 135 along the northern boundary of the site adjacent to Lone Oak Road (CSAH 26). This dedication is depicted on the attached plat, and has been excluded for the development area for purposes of this application. Our Team intends to modify the Plat described as Lot 1 Block 1 Gift of Mary including review and modification of easements located on the Subject Property to more accurately reflect and accommodate the proposed uses, if approved, which are not the same as those planned for in the existing Plat. Our Team is in agreement with the City s Northeast Special Area Plan which identifies this area of the community as being best suited for commercial, retail and light industrial uses. However, we believe that the site s current guiding of Office Service is not the highest and best use for the site, and would instead propose to re-guide the site for Limited Industrial uses. The subsequent sections of this Application will address the details regarding our proposed use of the site and what amendments to the Comprehensive Plan would be necessary in order to accommodate the proposed use. EAGAN, MN 3430 HWY 55 COMPREHENSIVE PLAN AMENDMENT 2

16 Comprehensive Guide Plan & Zoning The Subject site is approximately 33 acres and is included in the City s Northeast Special Area Plan which is a subsection of the City s 2008 Comprehensive Plan. Through special study of the area, the City has concluded that this area of the City, which contains approximately 400 acres overall, is best suited for commercial, retail and light industrial uses. As described in the plan, the City recognizes that the area, due to the airport zones and contours, that residential uses are not desirable in this location and as such uses that bring commerce and jobs to the City would result in the highest and best use of the area. Additionally, the Northeast area is bound generally by I-494, TH 55/149 and Lone Oak Road (CSAH 26) which provides excellent visibility and access to businesses that may choose to locate in this area. While we are in agreement about the general land use principles proposed for this area, we do believe that changing the designations on the Subject property will ultimately be more marketable and result in the development of this site. If the changes as highlighted below were to be accepted, we believe that the development of site will continue to be consistent with the Northeast Special Area Plan, and that the ultimate goal of bringing jobs to this area of the community will be achieved. The following summary of the changes is explained further below. Existing Land Use and Site Conditions As previously described, the Owner of the subject property at one time intended to develop the site and as such a Final Plat was recorded on the property. A frontage road running parallel to Highway 55 was constructed as part of that process which provides primary access to the Subject property. Since the development never materialized, the existing homestead on the property has remained and at this time the site would be considered a large lot single family use. The existing home is oriented towards Highway 55 and is accessed from a driveway which connects to the frontage road. There are also 4 accessory buildings on the Subject property, three of which are accessed from the frontage road, and one which is accessed and located on the north side of the site and is connected to Lone Oak Road (CSAH 26) via a U-shaped double access driveway. Additionally, the site is heavily vegetated and includes several wetland areas including wetlands (and potentially stormwater retention area) adjacent to both the CSAH 26 and Highway 55 rights-of-way. Existing Land Use Designation in 2008 Land Use Plan and Existing Zoning District The Subject site is guided for Office/Service uses per the official Land Use Map as depicted on Exhibit 2, which is defined in the Comprehensive Plan as, Offices and lower intensity service and retail businesses, including medical clinics, day care centers, banks and dry cleaners. Based on this description, it is our understanding that light industrial uses including warehousing, truck bays, and other higher intensity uses would be excluded from this designation and associated zoning districts. The existing zoning of the Subject property is Agricultural (A) as depicted on Exhibit 3, which is consistent with the current underutilized and largely vacant nature of the site. As described above, there are no active agricultural activities on the site, and thus the current zoning is really a holding district, and that re-zoning of the property would be a necessary step in any development of the Subject property. EAGAN, MN 3430 HWY 55 COMPREHENSIVE PLAN AMENDMENT 3

17 Proposed Amendment to Land Use Designation and Corresponding Zoning District As shown in the Project Snapshot and in Exhibit 2, our Team is proposing to re-guide the Subject property from Office/Service to Limited Industrial. The City s Comprehensive Plan describes Limited Industrial Uses as, Manufacturing, warehousing and goods movement/distribution. If the land use amendment were to be granted, we would proposed to re-zone the property from Agricultural to I-1, Limited Industrial District (See Exhibit 3). Proposed Project We are proposing to develop the site with a mix of light industrial uses as depicted on the Concept Plan attached as Exhibit 4. We believe that designing the site holistically makes the most sense, but also believe that in order for this quantity of space to be absorbed by the market that there must be flexibility in the types of uses and users that would be allowed on the site. Additionally, the positioning of this site with dual frontage on Highway 55 and Lone Oak Road (CSAH 26) provides an opportunity to the City to continue it s efforts in developing the Northeast Special Area with uses that promote commerce and jobs. Necessary infrastructure including regional sewer is in place, which makes this site a great place to start and continue development efforts in the area. The following information details our Proposed Project as shown on the concept plan. Based on our preliminary review of the market and evaluation of the site we believe that the site can accommodate up to approximately 295,000 square feet of office, warehouse and goods movement/ distribution facilities. The current site plan essentially breaks the development up into a north half and a south half. The development on the north half of the site would be accessed from CSAH 26, while development of the south half would be accessed from Highway 55. Development of these two areas would not be connected by internal roads, and therefore would disperse traffic from the site. On the north half of the site we are proposing to construct two buildings which are identified on the attached concept as Building A and Building B. These buildings would be accessed from a single driveway which would connect to CSAH 26 and would be aligned with the Ames Crossing Road intersection to the north. Parking lots would be designed to provided maximum flexibility to potential users of the facilities, ensuring adequate parking is available to tenants and customers. Truck bays and garage areas would be located behind Building A and to the east of Building B shielding the trucking and garage bays from adjacent roadways. Building C is the largest building proposed and would be located on the south portion of the site and accessed from the frontage road along Highway 55. The parking areas would be designed to accommodate a variety of potential tenant types again providing flexibility to respond to market demands. All truck bays and garages would be located behind the building, providing screening of these areas from the frontage of Highway 55. EAGAN, MN 3430 HWY 55 COMPREHENSIVE PLAN AMENDMENT Stormwater management facilities including ponding would be designed across the site holistically, and would be placed near and adjacent to existing wetland and lowland areas. The current layout of the buildings would necessitate ponding areas along both Highway 55 and CSAH 26 rights-of-way with potential additional ponding in the central portion of the site. 4

18 Compatibility with Surrounding Area The Proposed project is consistent with the City s future plans for development in the Northeast area which promotes uses that are focused on jobs and non-residential uses. The Proposed project would help achieve the goals and objectives as stated within the Northeast Special Area Plan by bring diversity in users to the area that are focused on commercial and light industrial development. One of the most desirable aspects from a light industrial perspective of the site is it s proximity and visibility to highways which makes it a perfect site for warehousing, distribution and supporting office uses. By essentially bisecting the site between a north half and south half, the intensity of the uses will be split and traffic impacts divided between Highway 55 and CSAH 26 which should help mitigate some of the potential traffic impacts as a result of developing this site with more intensity than envisioned in the City s current plan. With respect to adjacent land use and zoning designation, attached Exhibits 2 and 3 demonstrates that the Proposed project would be consistent and similar to adjacent land use designations not only in the City of Eagan but in the City of Inver Grove Heights as well. Guided land uses in the area north of Highway 55 include Industrial Office Park, Business Park, Retail/Commercial, Major Office and Office Service. While some medium and low density residential uses do existing in proximity to the site, the majority of this area has been guided for land uses which promote jobs and commerce. Ultimately, we believe that our Proposed project, and the necessary re-guiding is more marketable than simply developing the site with office uses because it brings greater flexibility and diversity to the area providing options to potential users. Based on this we have concluded that re-guiding the site to Limited Industrial would afford the most flexibility and marketability of the site long term and that the site characteristics warrant this change. We believe that the light industrial use, and Proposed project is consistent with the area and site characteristics which are summarized in the following: The site is in excess of 30-acres with dual frontage on CSAH 26 and Highway 55 - the accessibility and visibility of the site is ideal for warehousing, distribution and supporting office facilities. There is no transit adjacent to the site, which reduces the desirability of the site for pure office users. Current trends in the market suggest that corporate users and pure office users are looking for spaces with proximity to mass transit to attract workers. This site is not accessible to the regional transit system which makes it an unlikely candidate for an office campus. The Subject property is not adjacent or connected to the City, County or regional park system which makes it less desirable for pure office or residential uses. Warehousing, distribution and supporting office users are less reliant on transit services and are more concerned with accessibility to the highway system. The City adopted a TH 55 access management plan which identified Louis Lane and TH 55 as a full access intersection. Louis Lane is the access into the frontage road, and the site. This makes getting on and off of TH 55/149 easy, and desirable. EAGAN, MN 3430 HWY 55 COMPREHENSIVE PLAN AMENDMENT 5

19 Our Team is interested in developing the site and getting spaces filled with new tenants that will become valuable business members of the community. The following tables demonstrate the quantity of existing office space in the Burnsville/Eagan/Apple Valley (BEA) Submarket and associated absorption rates: Year YTD 5-Yr Average Absorption SF Absorbed -24,910 40, , ,344 47,273 BEA Base SF Q3 14 Vacant SF Q3 14 Avail.SF Years to Absorb (Vacant) Years to Absorb (Available) 2,491, , , *Information collected and compiled by CBRE The above tables demonstrate that it would take approximately 10.5 years to absorb the currently vacant office space based on the 5-Year average of absorption for the submarket. As for available space, it looks to be approximately 11.2 years to absorb the available office space in the submarket. As supported in the tables above, the existing pure office market in Eagan is currently over developed with high vacancy rates at 20.5%, as opposed to office warehouse which is at 5.9%. Current vacancy rates suggests greater opportunities existing in the office warehouse market, and that flexibility in uses on the site will play a significant role in the overall marketability of the site. Flexibility is what the market demands of this site. While it is a well positioned site with infrastructure in place, it still has challenges. The flexibility to respond to the market, while remaining consistent with adjacent land uses will ensure the actual development of the site. The Proposed project is consistent with the City s desire to avoid residential development in the MSP Noise Exposure Zones and Buffer area. EAGAN, MN 3430 HWY 55 COMPREHENSIVE PLAN AMENDMENT 6

20 EAGAN, MN 3430 HWY 55 COMPREHENSIVE PLAN AMENDMENT Exhibit 1: Existing Plat 7

21 City of Eagan Inver Grove Heights Major Office (MO) Low-Medium Density Comprehensive Plan Land Use Plan - City of Eagan and Inver Grove Heights Property within 660 of Site Proposed Amendment Land Use Plan - City of Eagan Re-Guide site from OS to LI Office Service (OS) Medium Density (MD) Major Office (MO) Office Service (OS) Low Density (LD) SITE SITE Limited Industrial (LI) Industrial Office Park (IOP) Low-Medium Density Exhibit 2: Land Use EAGAN, MN 3430 HWY 55 COMPREHENSIVE PLAN AMENDMENT Medium Density (MD) Industrial Office Park (IOP) Low Density (LD) 8 Feet ,240

22 City of Eagan Inver Grove Heights PD A Zoning Map City s of Eagan and Inver Grove Heights Property within 660 of Site Proposed Zoning City of Eagan Re-Zone from A to I-1 Agricultural (A) R-3 PD Agricultural (A) SITE R-1 SITE I-1 Limited Industrial A A EAGAN, MN 3430 HWY 55 COMPREHENSIVE PLAN AMENDMENT Exhibit 3: Zoning Map A R-3 R-1 9 Feet ,240

23 10 EAGAN, MN 3430 HWY 55 COMPREHENSIVE PLAN AMENDMENT Exhibit 4: Concept Plan