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HomeMy WebLinkAbout2013-02-06 MINUTES (SPECIAL MEETING)CITY OF COTTAGE GROVE WEST POINT DOUGLAS WORKSHOP A Joint meeting of the City Council, Planning Commission and Economic Development Authority MINUTES February 6, 2013 Pursuant to due call and notice thereof, a special meeting of the City Council, Planning Commission, and Economic Development Authority was held at Cottage Grove City Hall, 12800 Ravine Parkway South, Cottage Grove, Minnesota 55016 on the 6th day of February, 2013. Members Present: Myron Bailey, Mayor Justin Olsen, Council Member Jen Peterson, Council Member Derrick Lehrke, Council Member Dave Thiede, Council Member Craig Patterson, EDA Member Ramona Westerberg, EDA Member Paul Poncin, EDA Secretary/Treasurer Maureen Ventura, Planning Commission Member Ken Brittain, Planning Commission Member Lise' Rediske, Planning Commission Member Neal Heurung, Planning Commission Member Members Absent: Laura Maciejewski, EDA Member Jim Rostad, Planning Commission Chair Elijah Harter, Planning Commission Member Brian Pearson, Planning Commission Member Chris Reese, Planning Commission Member Randall Wehrle, Planning Commission Member Staff Present: Ryan Schroeder, EDA Executive Director Danette Parr, Economic Development Director Robin Roland, Finance Director Jennifer Levitt, Community Development Director John Burbank, Senior Planner John McCool, Senior Planner Craig Woolery, Public Safety Director Laura Bolstad, Economic Development Specialist West Point Douglas Workshop - Minutes February 6, 2013 Page 2 Others Present: Kevin Kielb, Bolton & Menk Corrine Heine, Kennedy & Graven Tony Jurgens, former EDA Member I. Welcome Mayor Bailey welcomed everyone to the meeting. He clarified that the purpose of the meeting is to brainstorm options to encourage development / redevelopment along the West Point Douglas corridor and to seek feedback as a part of formulating a workplan going forward. II. Corridor Backqround Economic Development Director Parr outlined the objectives of the meeting. She reviewed the issues that need to be discussed, including current land uses and permitted land uses, the financial implications in relation to the corridor, challenges, potential for incentives, vacant land and structures, and how to best direct resources. She also introduced the survey for all to complete after the meeting to make sure that everyone has the opportunity to provide their input on the direction of the corridor. Senior Planner McCool outlined the geographic boundaries and zoning history of the study area. He explained that planned business districts were opened up to new uses in March 2012 to bring the zoning into compliance with the City's long term comprehensive plan. In addition, Economic Development Director Parr pointed out that a plan for the Langdon area was already created in conjunction with the Red Rock Corridor planning process. Economic Development Director Parr then reviewed the current land uses in the corridor. Land use by percentage of land area: 28% Commercial, 20% Public Facilities,19% Agricultural, 17% Residential, 10% Vacant B-2 Land, 3% Industrial, and 3% Private Utility. III. Buildinqs, Vacancies, & Potential Economic Development Director Parr reported that the current nonresidential structures have 266,649 sq. ft. gross floor area, and staff has calculated the potential for an additional 411,672 square feet of commercial space on three of the vacant parcels (TCF, St. Paul Land Resources, and Bootenhoff properties, totaling 41 acres cumulatively). She explained that the width and depth of the sites vary, with 550 generally the largest lot depth in the study area. The gross floor area of vacant space in non-residential structures within the study area is approximately 57,857 gross square feet of floor area. This is approximately 22 percent of the total gross floor area of all existing commercial structures within the study area. Without the former Rush, Cottage Grove Motors and Majestic Ballroom buildings, the amount of vacant floor space is reduced from 57,857 square feet to 23,622 square feet, which is a 10.2 percent vacancy rate within the study area. Redeveloping the former Rush (17.62 acres), former Cottage Grove Motor (3.04 acres) and the former Majestic Ballroom (9.27 acres) sites could potentially provide 269,406 square feet of floor area (based on commercial uses). The Building Official and Planning staff have reviewed the former Rush/Rodeo and Majestic Ballroom sites (information included in the packet), as well as a memo and tracking log of Public Safety calls to the two sites since closings. West Point Douglas Workshop - Minutes February 6, 2013 Page 3 Council Member Olson asked if City staff have had any recent conversations with the school district regarding whether they intend to move their bus storage facility on West Point Douglas. Economic Development Director Parr replied that she was not aware of their long term plans. Council Member suggested that this question should be raised at the meeting with them on Friday. Economic Development Director Parr and City Administrator Schroeder agreed that would be a good idea. Planning Commissioner Heurung stated that he works for the school district, and he is aware that they currently do not have enough space for busses. As a result, the district is subcontracting bus service to two other companies. Economic Development Director Parr pointed out that there are five nonconforming residential structures in the corridor. The residential structure on the Acorn Mini Storage site, however, has a conditional use permit. Economic Development Director Parr highlighted the properties that the City owns in the corridor, which is comprised of the Public Works facility property and parcels that the EDA has acquired over time for redevelopment as a part of the Langdon effort. IV. Corridor Advantages & Challenqes Economic Development Director Parr said that she has recently contacted a number of commercial real estate brokers to get their perspective on the corridor. She summarized the brokers' feedback on the corridor's advantages & challenges. Corridor Advantages: 1. "Great visibility to Hwy 61" 2. "Good traffic counts along Hwy 61" 3. "Rail service in close proximity" (beneficial for some land uses) 4. "Good Access" (based on land use) Corridor Challenges: 1. "The Market is still rebounding — due to CG's location, it will still take a bit to get development activity to begin." 2. "Zoning — we tend to get inquiries from non PB and B-2 type uses (more industrial in nature or auto related) 3. "Depth and configuration of certain parcels can be tough" 4. What's around us currently" —"People have a hard time envisioning what it could be because of what is or isn't already here" 5. "The rail isn't desirable next to commercial/retail/office" V. Access Improvement Options Community Development Director Levitt explained that part of the challenge with the corridor is the road access to it. For that reason, Bolton & Menk was hired to create a traffic study of the corridor. At the South end of the corridor she reviewed the planned roadway extension that will make West Point Douglas come to a tee at the newly aligned 100 St, which would then connect to a folded diamond interchange at County Rd 19 and Hwy 61. West Point Douglas Workshop - Minutes February 6, 2013 Page 4 Traffic patterns outlined in the West Point Douglas Traffic Study: 65% trips are generated from the North 20% 80th 10% Grange 35% from the Hwy 61 35% of trips are generated from the South. 15% from Jamaica 20% from Hwy 61 The traffic study evaluated the level of service provided by the two signalized intersections in the corridor to ensure that there will not be a failed condition in the short, mid, and long term. The study found that there is a good level of service being maintained for the nearly 23,000 that use 80 St. The study found no issues with the signalized intersections. Community Development Director Levitt reviewed current traffic patterns, planned road improvements to connect West Point Douglas to Innovation Rd, and three alternatives to improve access to the study area. Option A: Diamond Interchange from Hwy 61 between 80 St and Jamaica Ave - Would provide full ingress and egress access - The footprint of the entrance and exit ramps would consume homes near East Point Douglas and West Point Douglas Land (number of homes not yet calculated), which would be expensive and would reduce the amount of land that could be developed. - Does not conform with the City's comprehensive plan - MnDot would likely not allow full interchanges so close together. - Study determined that Option A is not a viable option Option B: Slip Ramp from southbound Hwy 61 exit ramp, merging traffic in right lane onto West Point Douglas just North of 80' St - Would involve land acquisition & possible contamination issues - Would enable ingress from southbound 61 - Would not solve egress problems - Would not enhance access from northbound Hwy 61 or 80 St/ Grange Ave - Would save 64 seconds travel time - 5,400 vehicles would benefit from Option B— only southbound traffic from Hwy 61 (35% of trips) -$2.5M Cost (Does not include land acquisition or any environmental costs) Option C: Add a slip ramp lane from Southbound Hwy 61 entrance ramp. Slip ramp would curve to form a tee with West Point Douglas, allowing the traffic to turn North or South onto West Point Douglas. - Would not improve egress - Would save 29 seconds travel time - 10,140 vehicles would benefit from Option C— all traffic accessing West Point Douglas from the North (Hwy 61, 80 St, & Grange - 65% of trips) -$3.5M Cost (Does not include land acquisition or any environmental costs) - More cumbersome that Option B(more turns) - Would involve dealing with wetlands, land acquisition, and a retaining wall. West Point Douglas Workshop - Minutes February 6, 2013 Page 5 Option D: Bridge crossing pond from Hadley to W. Point Douglas. - Likely RR Crossing Abandonment at Belden Blvd, which would negatively impact nearby businesses. - Challenging to deal with a pond that has a DNR impact classification. - Bridge over the Hamlet Park Pond would not fit the park atmosphere that had been planned for the area. - Determined that Option D is not a viable option. Planning Commissioner Heurung asked whether the estimates of the number of trips per day that options B and C would impact are based on current or projected traffic levels. Kevin Kielb with Bolton and Menk answered that the number trips per day on West Point Douglas is currently 3,100, and with full build-out of the area the number of trips per day are projected to be 15,000. The numbers given for the quantity of trips per day that each option would impact were based on that future projection. Council Member Olson pointed out that it is difficult to project future traffic patterns without knowing how the land will be used as it is developed. He also said that when retail businesses evaluate site access they look at ease of use rather than the actual amount of drive time. Council Member Thiede asked if the signage directing traffic to West Point Douglas could be improved. Community Development Director Levitt stated that the existing signage is the maximum allowed within the law. Planning Commission Member Brittain pointed out that people in Cottage Grove know how to get to West Point Douglas, but the important thing is that it is perceived as being inconvenient to access. EDA Member Patterson asked about the possibility of doing both option B and C, and the group discussed what that would entail. Former EDA Member Jurgens asked who we are trying to accommodate with these solutions—traffic from Hwy 61, Cottage Grove citizens or people already on 80 St? Discussion of priorities and the best interchange to accommodate those priorities followed. Council Member Olsen asked about the prospect of waiting to complete West Point Douglas access improvements until the Sieben Bridge needs to be redone at some point in the future. Community Development Director Levitt agreed that it would be far more cost effective to wait until the existing bridge needs to be expanded, but she stated that the bridge at County Road 19 is a higher priority for the City right now because it has more deficiencies than the Sieben Bridge. Senior Planner Burbank asked if the similarity between Option C and the interchange in Woodbury at Radio Drive and Hudson Rd might make it easier to get MnDOT approval. Community Development Director Levitt explained that it would be a non-standard pattern, so MnDOT may not approve it. It would likely require over $100k for the necessary modeling, but MnDOT could still say no. Mayor Bailey provided more context about how Woodbury's interchange was approved, and he suggested that the City look at how successful or unsuccessful Woodbury's interchange has been to evaluate whether it would be worth the cost. The group further discussed the advantages and disadvantages of the various proposals, as well as other factors that would impact their success (e.g. congestion, egress problems, school busses, traffic crossing paths, etc.). West Point Douglas Workshop - Minutes February 6, 2013 Page 6 VI. Funding for West Point Douqlas Improvements A. Road and Utility Improvements Community Development Director Levitt outlined the three phases of funding for potential road and utility improvements on West Point Douglas Rd. Adjacent property owners would pay a large portion of the cost of those improvements. Phase -1, Belden Boulevard to Jamaica Avenue, approximately 10,560 LF in length. Estimated Cost : $ 3,376,507.00 Phase -2, Jamaica Avenue to Islay Avenue, approximately 1,665 LF in length. Estimated Cost: $ 577,296.00 Phase -3, Islay Avenue to 96 Street, approximately 1,614 LF in length. Estimated Cost: $ 752,749.00 B. Access Improvements For access improvements the City would use a tiered tax assessment system because the improvement is not immediately adjacent to the property owners. In this three tiered system, the properties closest to the improvement would pay the highest proportion of the cost. EDA Member Westerberg described the negative impact the cost of the Jamaica roundabouts assessment has had on her landlord, and she cautioned that another expensive assessment would be difficult for businesses on West Point Douglas to bear. Council Member Thiede suggested that light industrial or showroom/warehouse uses be considered because access is not as big of an issue for them, so it would not require costly access improvements. He asked if those uses had been considered. Economic Development Director Parr stated that those uses are being seriously discussed. The commercial real estate brokers she spoke to expressed that showroom/warehouse and light industrial users were the type of businesses they anticipated attracting. Access would not be a problem for those uses, and the current zoning allows for it. Planning Commission Member Heurung agreed that it would be a better use of the corridor than uses like retail or entertainment that would create traffic problems. VII. Market Conditions Economic Development Director Parr explained the challenging market conditions the corridor faces. She gave examples of communities that have had success in developing a light industrial/showroom area, such as Oakdale. She shared how she had met with the County Assessor to discuss comparable properties, but unstable market conditions make it very difficult to compare properties to discern the tax implications of different uses. She directed the group's attention to the handout showing the price per square foot of each property in the corridor. She pointed out that the prices are fluctuating rapidly. In her conversations with real estate brokers, the brokers reported that commercial/retail development in the Corridor is challenging due to access, rail, proximity to the business/industrial park, and competition for commercial users in the same trade area. Many brokers and landowners associate the land with showroom/light industrial uses. Current property values may make infrastructure improvements challenging because the costs the assessments can become higher than the property values. West Point Douglas Workshop - Minutes February 6, 2013 Page 7 VIII. Further Discussion Mayor Bailey raised the following points: 1) Light industrial or warehouse/showroom space on West Point Douglas could be great options for BEC businesses as they graduate from the accelerator. There could be opportunity to provide assistance for their transition. 2) It's possible to make enhancements to light industrial with the streetscape we would develop. 3) High density housing surrounding commuter rail could areas that are more difficult to access. buildings so that they look nice be an option, especially in the Council Member Lehrke expressed his concern that high density housing would not be a viable option near commuter rail because of noise and other factors that are unattractive to potential residents. Senior Planner Burbank pointed out that there is further information on the potential for housing along the future commuter rail line in the Red Rock Corridor study. That study suggested light industrial or warehouse/showroom uses along West Point Douglas for a number of reasons. Planning Commission Member Ventura said that it is difficult enough to get new retail in our existing retail areas, so it would be a stretch to make retail work on West Point Douglas. Light industrial would be a better fit and would be more attractive to potential developers. Council Member Olsen suggested an entertainment venue or other destination venue could be more compatible in the corridor. EDA Member Westerberg suggested a hotel with a waterpark would be a destination that would draw people to the area. Economic Development Director Parr, Mayor Bailey, and Council Member Lehrke pointed out potential problems with locating a hotel right by the railroad. Planning Commissioner Brittain brought up the potential hazard of West Point Douglas retail competing with other commercial areas in the City. The City has several commercial/retail areas and more planned. He asked how much more retail the population can support. He suggested that over the long term it may make more sense to balance out retail in other areas with light industrial and warehouse/showroom in the West Point Douglas area, which would in turn make our existing and upcoming retail areas more attractive by increasing daytime numbers. Economic Development Director Parr said that the 2009 McCombs retail potential study projects the City's retail potential in terms of dollars of sales in retail sectors rather than in square footage, so that study does not address how much land should be planned for retail use. Council Member commented that the approach that Planning Commissioner Brittain suggested makes a lot of sense. West Point Douglas could be developed to have a compatible non-retail use (e.g. college or hospital) that would bring in employees that would in turn make the City's retail areas more attractive. Economic Development Director Parr encouraged everyone to submit a survey with their input on the corridor. Respectfully Submitted, Laura Bolstad Economic Development Specialist