PLANNING REPORT CITY OF EAGAN REPORT DATE: January 17, 2018 CASE: 02-CG-04-12-17 APPLICANT: TJ Design/Costco HEARING DATE: PROPERTY OWNER: MG Eagan LLC APPLICATION DATE: REQUEST: Comprehensive Guide Plan Amendment PREPARED BY: Pamela Dudziak LOCATION: Southeast corner of I-494/I-35E interchange COMPREHENSIVE PLAN: MO, Major Office ZONING: PD, Planned Development SUMMARY OF REQUEST TJ Design, on behalf of Costco, is requesting approval of a Comprehensive Guide Plan Amendment from Major Office (MO) to Retail Commercial (RC), to allow a members-only retail use on Lot 1, Block 1, Blue Gentian Corporate Center. The site consists of approximately 18.1 acres and is located east of Hwy 55 and north of Blue Gentian Road, southeast of the I-494/I- 35E interchange. AUTHORITY FOR REVIEW The city s Comprehensive Guide Plan was prepared pursuant to Minnesota Statutes, Section 473.864. 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.
Page 2 BACKGROUND/HISTORY The site was rezoned from Business Park (BP) to Planned Development (PD) in 2008. The development and use of the subject site is governed by a Planned Development Agreement dated September 2, 2008, which allows a 261,000 s.f. multi-story office building with underground and structured parking. The property was platted at that time to consolidate multiple parcels. Prior to the 2008 development plan approval, a TIF District was created over the area to facilitate redevelopment and the removal of blighted structures and obsolete uses from the property that were inconsistent with the Business Park zoning at that time. To date, the property remains vacant and the approved office development has not been constructed. Land Use History The City s first Comprehensive Land Use Map was adopted in 1974 and shows the site designated for Industrial land use. At that time, there were several residential homes present with zoning designations of Single-family (R-1) and Agriculture (A). In 1988, the land use designation shows Commercial Planned Development (CPD), a designation which remained until 1996, when it changed to Business Park (BP) for consistency with the newly adopted Business Park zoning ordinance. With the 1998 Comprehensive Guide Plan Update, the City was required to create consistency between the land use and zoning designations of the property. At that time, the Special Area small area plan was adopted, which acknowledged existing residential uses as conforming, and established a long-term vision to transition the entire Special Area from a variety of scattered uses to a more cohesive business and industrial park. The TIF District to facilitate the redevelopment within the Special Area was approved in 2008 and certified in 2009, and the Major Office (MO) land use designation followed the approval of the current Planned Development for multi-story office use, and was applied to the property in the 2010 Comprehensive Plan Update which eliminated the Special Area designation. Zoning History The site was rezoned to Planned Development in 2008 with the approval of development plans for the Blue Gentian Corporate Center. PD remains the current zoning, with the PD Agreement identifying multi-story office as the approved use. Before 2008, the property consisted of three different zoning designations -- Business Park (BP), Agriculture (A), and Single-family (R-1) -- applied to various parcels that now comprise the subject site.
Page 3 EXISTING CONDITIONS The property is currently vacant. Access to the site is from Blue Gentian Road. There are wooded areas on the property and significant slopes, especially along the northern boundary. A wetland is present north of the property. Access to the site is available from Blue Gentian Road. SURROUNDING USES The following existing uses, zoning, and comprehensive guide plan designations surround the subject property: Existing Use Zoning Land Use Designation North I-494/I-35E Right-of-Way Right-of-Way South Office BP, Business Park SA, Special Area East Office BP, Business Park SA, Special Area West Hwy. 55/I-35E Right-of-Way Right-of-Way EVALUATION OF REQUEST Description of Proposal - The applicant is proposing a change in the land use designation of this 18.1-acre site from to MO, Major Office to RC, Retail Commercial to allow for construction of a members-only retail warehouse with liquor sales, a motor fueling station, and a tire center. The action to be considered in this application is whether to allow the change in land use from Major Office (MO) to Retail Commercial (RC) for the 18.1 acre site. If the amendment application is considered favorably, specific development plans will be reviewed at the time of a future development application for PD Amendment. Therefore, the submitted conceptual development plan illustrates the intended development, but is not part of the action before the City at this time. The narrative speaks to design details such as lighting, landscaping and building finish, and mechanical equipment screening which would be required and evaluated as part of a future PD Amendment application. Applicant s Narrative The applicant s narrative describes the proposed retail operations and site development concept. The tire center is about 5,300 s.f. and is accessed through the main building. The tire center provides for tire sales and installation with five service bays. Overhead doors for access to the bays face the south. The liquor pod occupies approximately 8,600 s.f. of the building. According to the narrative, it is anticipated that the development would employ approximately 200 to 250 people both full and part time. The submitted narrative indicates the fueling station includes an 8,127 square-foot canopy, with fueling capacity for 24 cars at a time. Eight stacking lanes feed the pumps, which are automated and self-serving for Costco members only. An attendant would be present to assist
Page 4 with problems. Typical fueling station hours are from 5:00 a.m. to 10:00 p.m. daily. Fuel deliveries are typically two trucks per day and the fuel facility is specifically designed to avoid traffic and queuing conflicts with the warehouse. The Costco warehouse store hours are typically from 10:00 a.m. to 8:30 p.m. Monday through Friday, and Saturdays 9:30 a.m. 6:00 p.m. Deliveries occur between 3:00 a.m. and 2:30 p.m. with most completed before the store opens. Compatibility with Surrounding Area - The property is located adjacent to I-35E and I-494 to the north and Hwy. 55 to the west. Thus, the site has high visibility from three major roadways. Adjacent to the site are the Spectrum Commerce Center and Grand Oak Business Park to the south and east. The proposed change in land use introduces retail commercial use in an area consisting largely of office and industrial uses. The nearest retail commercial uses are about one mile southeast of the site on the north side of the Hwy. 55 and Hwy. 149 intersection. Sam s Club is also located less than a mile south of the subject site. Site Plan The conceptual site plan identifies an approximately 166,000 s.f. building with a motor fuel station. The retail building includes indoor cart storage area and liquor sales. The majority of parking on the west half of the property, and the store on the eastern half of the site. Access is proposed from Blue Gentian Road in two locations. As compared to the approved PD for multi-story office, the proposed building size is smaller (~166,000 s.f. compared to ~261,000 s.f.) and the amount of parking is less (733 stalls as compared to 1,192 stalls). Density The proposed building provides 166,000 s.f. upon 18.1 acres, resulting in a building coverage ratio of 21.1%. This ratio excludes the motor fuel station canopy, which is approximately 8,100 s.f. Parks and Recreation This property is subject to park and trail dedication requirements. Cash dedications are payable at the time of Building Permit at the rates then in effect. The 2018 rate for parks is $939 per 1,000 square feet of building and for trails, $1,289 per net acre. ENVIRONMENTAL IMPACTS Grading/Topography The site has a combination of open and heavily treed areas. Former Blue Gentian Circle loops through the center of the site and connects to Blue Gentian Road near TH 55. The site has large variations in topography with the former Blue Gentian Circle roadway being the breakpoint (ridge) through the property. North of Blue Gentian Circle slopes towards I-494, and south of Blue Gentian Circle slopes toward Blue Gentian Road. Elevations range from approximately 910 down to 860. Almost the entire site would be disturbed for grading, installation of utilities, and construction of the proposed parking lot and building.
Page 5 Wetlands Because the applicant is proposing no Wetland Alteration Activities grading activities would occur no closer than approximately 100 feet from the wetland area the applicant is not required to delineate or assess the wetland for classification by the City. This development is therefore not subject to any requirements of Section 11.67 of Eagan City Code. Tree Preservation The site does contain several wooded areas. A significant Tree Inventory and Tree Preservation Plan will be required with a future development application. As a singlelot commercial development, allowable removal would be 30% of existing significant vegetation. Proposed removal beyond that amount is subject to mitigation in accordance with the City s Tree Preservation Ordinance. Airport Noise Considerations - The City of Eagan considered airport noise as a factor in its Comprehensive Land Use Guide Plan. The Metropolitan Council has adopted land use compatibility guidelines which incorporate the 2007 Noise Policy Contours. Under these guidelines retail commercial is considered a compatible use within Noise Zone 4. INFRASTRUCTURE IMPACTS Storm Drainage The entire site lies within Drainage District F (as designated in the City Storm Water Management Plan 2007). The northern half of the site drains to the north toward I- 494 where it enters Pond FP-14, which is a public water (DNR#19012000) partially located in Mn/DOT right-of-way. Overflow from the pond drains westerly through a storm sewer system paralleling I-35E, where it ultimately discharges to the Minnesota River. Drainage from the south half of the site enters the storm sewer along Blue Gentian Road, where it drains easterly to City Pond FP-1 (O Neil Pond). Overflow from that pond drains via public storm sewer to FP- 14. The development of this property will be subject to the City Code 11.67, 4.34 stormwater requirements and to MN Department of Transportation storm water permit requirements for discharge to TH 55 right-of-way. Utilities The applicant s site plan did not include a utility plan. Sanitary sewer District N (as designated in the City s Comprehensive Sanitary Sewer Plan) serves the entire site. Sanitary sewer and water main of sufficient size, depth and capacity are available from Blue Gentian Road to the south for connection by this development. All existing water and sewer lines not utilized with this development should be abandoned in accordance with City standards. All existing well and septic systems on the site should be abandoned in accordance with Dakota County and City standards as part of this development. Telecommunications - In 2004, the Eagan Technology Task Force recommended that broadband and fiber optic telecommunications networks be expanded in the city wherever
Page 6 possible. Any development of the site should include the installation of fiber optic cable, or a conduit for future installation, in its construction plans. Water Quality The applicant s site plan does not show how stormwater management and water quality requirements will be addressed. This proposed new development is located in extreme north-central Eagan, where stormwater discharge leaves the City of Eagan in the public storm sewer system, crosses into Mendota Heights following Interstate 494 to the west, discharging into regional basin HP-1 before overflowing into the Minnesota River Valley. Any development will need to comply with the City of Eagan s Post Construction Stormwater Management Requirements (City Code 4.34) for stormwater management and surface water quality, including Runoff Rate Control and 1.1 Volume Control. 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. Streets/Access/Circulation Public street access is proposed from Blue Gentian Road, a two lane collector roadway along the south edge of the site. Traffic/Parking Analysis For consideration of a Comprehensive Guide Plan Amendment, the applicant provided a trip generation and parking supply comparison for the site. The review involved estimating trip generation potential and required parking supply for the project site s approved land use (office) and comparing that to the trip generation potential and proposed parking supply for the project site s proposed land use (Retail Commercial). A copy of the study is included in the exhibits to this report. To summarize the study, when compared to the approved office development plan, the proposed development plan is anticipated to result in: A net decrease in AM peak-hour trip generation potential for inbound and outbound trips. A decrease in PM peak-hour, peak-directional trip generation potential (outbound). The decrease in the peak-hour, peak-directional trips is expected to benefit the peak hour operating conditions of the transportation system as compared to the approved land use. An increase in PM peak-hour off-peak directional trip generation potential (inbound). A net reduction in parking supply. Traffic Study If the Comprehensive Plan Amendment is approved, the applicant will be required to perform a more detailed and larger scale traffic study to determine any impacts to the surrounding roadway system, any necessary improvements (ie. access modifications, driveway alignment with surrounding properties, median extensions, turn lanes, striping
Page 7 modifications, traffic signal and intersection improvements, etc.), and be responsible to perform those improvements. Mn/DOT Plat Review Requirements Mn/DOT performed a plat review and provided a summary of their findings and requirements dated January 10, 2018 (see attached). To summarize, Mn/DOT is requesting the following items: Fix ALTA survey discrepancies Provide access controls Perform a detailed and expanded traffic study Any access into the site should not be any closer than 500 feet form TH 55 Provide a pedestrian connection between the bus stop in front of the property into the development Obtain a Mn/DOT drainage permit and right-of-way permit Future Greenway Corridor A future greenway corridor and trail is anticipated in this area. The development should be designed to accommodate these future improvements. Proposed 2018 Pavement Management Improvements - As part of the City s Pavement Management Program, Blue Gentian Road and Blue Water Road are both currently scheduled for mill and overlay improvements in 2018 (City Project 1265). The condition of the roads currently have a Pavement Condition Index (PCI) of 36, which is in the low end of the range considered for this type of improvement. If the proposed development moves forward, the City may delay the overlay until after the site improvements are complete. All benefitting properties will be assessed for the improvements after they are complete. Easements/Permits/Right-of-Way The development should be responsible for obtaining permits from applicable regulatory agencies, prior to building permit approval. Former Blue Gentian Circle right-of-way within the proposed plat was previously vacated by the City. A portion of the Blue Gentian Road/Circle public right-of-way remains east of the development, with the development s private drive being shown within this right-of-way. The developer should enter into an agreement with the City providing for the private maintenance of this drive within public right-of-way. Public drainage and utility easements only currently exist along Blue Gentian Road and a portion of the west property line. Standard drainage and utility easements around the perimeter of the property, adjacent to rights-of-ways, and over public utilities should be dedicated with the development. Financial Obligation At this time, a pending assessment in the amount of $49,212 is shown for this parcel for the proposed 2018 mill and overlay improvements (City Project 1265 Blue Gentian Road & Blue Water Road).
Page 8 Based upon a study by City staff of the financial obligations collected in the past and proposed use for the property, utility related Trunk and Lateral fees and previous roadway assessments that were not previously collected, and AUAR Mitigative Traffic Improvement fees, will be collected with any development of this property. COMPREHENSIVE LAND USE IMPACTS Land Supply The proposal shifts 18.1 acres of land from the Major Office land use category to Retail Commercial. The City is considered fully developed, with more than 95% of the City s land developed. In recent years, the City has seen increased retail commercial development, particularly in Cedar Grove with the outlet center, and at Yankee Doodle and Pilot Knob Roads with Central Park Commons. Major office developments have continued to occur elsewhere, particularly in the northeast and northwest portions of the City (e.g. Prime Therapeutics, White House Custom Colour, Viking Lakes, and Summit Orthopedics). Land Use Designations The current Major Office (MO) designation was applied to the property in 2010, acknowledging approved development plans for a multi-story office building on the site. The proposed Retail Commercial (RC) designation provides for a variety of retail related land uses. Shopping centers, supermarkets, drugstores, department stores, convenience center/gas stations, restaurants, hotels and other businesses offering goods and services are examples of uses allowed in this category. Neighborhood Business (NB), Commercial Shopping Center (CSC), and General Business (GB) are identified as corresponding zoning districts within the Retail Commercial land use designation. Compatibility Compatibility considerations vary with the type and scale of development. Larger commercial developments should include unifying design elements and greater buffering when adjacent to lower intensity residential uses. Access Needs Retail Commercial uses tend to generate substantial amounts of customer traffic. Visibility and convenient access is also important. According to the City of Eagan s Comprehensive Guide Plan, these uses should be located along arterial or collector roads, and larger development and certain uses such as hotels also benefit from close proximity to freeway access. The subject site has high visibility along two major arterial roadways, I-494 and I-35E. However, access to the site from those points of visibility is not direct. Drivers must access Blue Gentian Road from Hwy. 149 or Hwy. 55. Hwy. 55 has no nearby interchange with either I-35E or I-494, and Hwy. 149 interchange is ½-mile from the site and is not visible to the site.
Page 9 Physical Suitability According to the City of Eagan s Comprehensive Guide Plan, commercial developments are most suitable on flat, open sites with few physical constraints, to accommodate larger building footprints and high parking needs. The subject site has some physical constraints, with some significant topography and wooded areas. SUMMARY/CONCLUSION The applicant is proposing to amend the land use designation of the 18.1 acre site from Major Office (MO) to Retail Commercial (RC) to allow a members-only retail warehouse including a motor fueling station, tire center and liquor sales. The property has been approved for multistory office since 2008, and such development has not come to fruition. The site has high visibility from three major roadways (I-494, I-35E, and Hwy. 55). Some physical constraints are present in terms of topography and trees. Access is from Blue Gentian Road which connects to Hwy. 55 and Hwy. 149. The applicant submitted a generalized traffic study addressing peak traffic times for the proposed Retail Commercial use as compared to the existing approved Major Office use. A more detailed traffic analysis would be required with specific development plans to determine traffic impacts and possible improvements to the surrounding roadway system. Municipal utilities are present to serve the development. Any development of the site would be subject to park and trail dedications, and should accommodate a future greenway and trail corridor. A tree inventory also would be required, and mitigation applies for tree removal in excess of the allowable amount. The acceptability of the proposed Comp Guide Amendment and the proposed use is a policy matter for City officials. The Comp Guide Amendment also is subject to review and approval by the Metropolitan Council, after which the request is returned to the City for final action. It is the City s policy to withhold final action on implementation of a land use change until it is accompanied by specific development plans. In this case, specific development plans would be required in the form of a PD Amendment application, which would go through public hearing with the Advisory Planning Commission, and then to the City Council. ACTION TO BE CONSIDERED To recommend approval of a Comprehensive Guide Plan Amendment to change the land use designation from MO, Major Office to RC, Retail Commercial upon approximately 18.1 acres located southeast of the I-494 and I-35E interchange.