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PLA 04/17/2013 CITY OF FRIDLEY A G E N D A PLANNING COMMISSION MEETING WEDNESDAY, APRIL 17, 2013 7:00 P.M. ====================================================================== LOCATION: COUNCIL CHAMBERS FRIDLEY MUNICIPAL CENTER, 6431 UNIVERSITY AVENUE NE CALL TO ORDER: ROLL CALL: APPROVE PLANNING COMMISSION MEETING MINUTES: March 20, 2013 ACTION ITEM 1. : Consideration of Adjustment to Boundary of TIF Redevelopment Project Area. 2. RECEIVE THE MINUTES OF THE MARCH 7, 2013, HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION MEETING. OTHER BUSINESS: ADJOURN PLANNING COMMISSION MEETING March 20,2013 Vice Chairperson Oquist called the Planning Commission Meeting to order at 7:03 p.m. MEMBERS PRESENT: Brad Dunham, Tim Solberg, Brad Sielaff, Dean Saba, Jack Velin, and Leroy Oquist MEMBERS ABSENT: David Kondrick OTHERS PRESENT: Stacy Stromberg,Planner Scott Hickok,Community Development Director Scott Wiestling, Finn Daniels Architects Tom Salmi-Sydalek, Industrial Equities Justin Foell, 6005 Gardena Circle NE Lee Bachman, Bachman's, 8200 University Avenue Approval of Minutes: February 20, 2013 MOTION by Commissioner Solberg to approve the minutes as presented. Seconded by Commissioner Sielaff UPON A VOICE VOTE, ALL VOTING AYE, ACTING CHAIRPERSON OQUIST DECLARED THE MOTION CARRIED UNANIMOUSLY. PUBLIC HEARING 1. Consideration of a Special Use Permit, SP #13-04, by Scenic Sign Corporation for Sam's Club, to allow an electronic gas pricing sign on the canopy at the gas station, generally located at 8150 University Avenue NE. MOTION by Commissioner Saba to open the public hearing. Seconded by Commissioner Sielaff. UPON A VOICE VOTE, ALL VOTING AYE, ACTING CHAIRPERSON OQUIST DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING WAS OPENED AT 7:04 P.M. Stacy Stromberg, Planner, the petitioner, Bob Gruber, of Scenic Sign Corp., who is representing Walmart, the owner of the Sam's Club at 8150 University Avenue, is requesting a special use pen-nit to allow an electronic gas pricing sign to be installed on the east side of the canopy that is over the existing gas pumps. Ms. Stromberg stated the proposed electronic gas pricing sign will be 12.5 square feet in size. An existing 18.99 square feet of Sam's Club sign already exists on the canopy for a total of 31.49 square feet of signage on the east side of the canopy. Ms. Stromberg stated the subject property is zoned C-3, General Shopping as is the Bachman property to the north. The properties west and south are zoned industrial and the property to the east is a McDonald's that is zoned C-2, General Business. The property is located on the corner of 81'Avenue and University Avenue Service Road. The existing warehouse building was constructed in 1986. Planning Commission March 20, 2013 Page 2 of 14 Ms. Stromberg stated a permit was issued last year to do a major remodel of the existing building,which included construction of a new canopy area in the front of the building for loading of merchandise. A special use permit was issued in 2012 to allow motor vehicle fuel dispensing service. As a result, the existing kiosk building and six fueling pumps that are covered by a canopy,were constructed. Ms. Stromberg stated the petitioner received sign permit approval also in 2012 to install the Sam's Club signs on the canopy. At that time, Sam's Club wasn't sure what they were going to need for a gas pricing sign. They have since decided to go with an electronic changeable gas pricing sign, which requires a special use permit. Ms. Stromberg stated electronic changeable signs are an approved special use in any zoning district, except residential, provided the message doesn't change more often than once every 45 seconds. The sign also needs to be in conformance with the sign requirements for the zoning district, in which the property is located. Ms. Stromberg stated the subject property is zoned, C-3 General Shopping, which requires that wall signs cannot exceed 15 times the square root of the length of the wall. The maximum allowed signage on the east side of the canopy is 140 square feet. An existing 18.99 square foot Sam's Club sign already exists on the canopy and the new electronic gas pricing sign is 12.5 square feet. The total sign area for both signs is 31.49 which is well under what code would allow for signage. Ms. Stromberg stated City staff has not heard from any neighboring property owners. Ms. Stromberg stated City Staff recommends approval of the special use permit as electronic changeable signs are an approved special use in the commercial zoning district, provided the sign complies with Code requirements, subject to stipulations. Ms. Stromberg stated City Staff recommends that if the special use permit is granted, the following stipulations be attached: 1. The petitioner shall obtain sign permit and current sign erector license prior to installing any signage on site. 2. Message on L.E.D. sign shall not change more often than authorized under Section 214.07 of the Fridley City Code. 3. Message on L.E.D. sign shall never flash or have motion that may distract vehicular traffic in the area. 4. Per Section 205 of the Fridley City Code, this Special Use Permit will become null and void one year after the City Council approval date if work has not commenced or if the Petitioner has not petitioned the City Council for an extension. Commissioner Sielaff asked whether the sign will only be used as a gas price sign? Ms. Stromberg replied,yes. MOTION by Commissioner Saba to close the public hearing. Seconded by Commissioner Sielaff. UPON A VOICE VOTE, ALL VOTING AYE, ACTING CHAIRPERSON OQUIST DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING WAS CLOSED AT 7:08 P.M. Planning Commission March 20, 2013 Page 3of14 Vice Chairperson Oquist stated this is pretty straightforward. He asked whether the petitioner has seen the stipulations? Ms. Stromberg replied,yes. MOTION by Commissioner Dunham approving Special Use Permit, SP #13-04, by Scenic Sign Corporation for Sam's Club, to allow an electronic gas pricing sign on the canopy at the gas station, generally located at 8150 University Avenue NE with the following stipulations: 1. The petitioner shall obtain sign permit and current sign erector license prior to installing any signage on site. 2. Message on L.E.D. sign shall not change more often than authorized under Section 214.07 of the Fridley City Code. 3. Message on L.E.D. sign shall never flash or have motion that may distract vehicular traffic in the area. 4. Per Section 205 of the Fridley City Code, this Special Use Permit will become null and void one year after the City Council approval date if work has not commenced or if the Petitioner has not petitioned the City Council for an extension. Seconded by Commissioner Velin. UPON A VOICE VOTE, ALL VOTING AYE, ACTING CHAIRPERSON OQUIST DECLARED THE MOTION CARRIED UNANIMOUSLY. PUBLIC HEARING 2. Consideration of a Transit Oriented District(TOD)Master Plan TOD#13-01, by Industrial Equities,LLP,to allow the construction of an office/warehouse building,and a future office and multifamily housing development,generally located at 5601 East River Road NE. MOTION by Commissioner Velin to open the public hearing. Seconded by Commissioner Saba. UPON A VOICE VOTE, ALL VOTING AYE, ACTING CHAIRPERSON OQUIST DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING WAS OPENED AT 7:09 P.M. Ms. Stromberg stated John Allen of Industrial Equities LLP, is requesting a Transit Orientated District (TOD) Master Plan for the property located at 5601 East River Road. This property is zoned C-3, General Shopping; however, because it is within the TOD Overlay District, a TOD Master Plan needs to be approved by the.City Council before development can start on this site. Ms. Stromberg stated the petitioner is asking for TOD Master Plan approval for the subject property to allow a phased project. Phase 1 will consist of the construction of a (1) level speculative office/warehouse building along the east side of the property. Proposed additional phases could include two (5) level professional office buildings with underground parking, a connected (2) level common core and a parking structure; and a 120 unit multi-family/senior housing development with underground parking. Planning Commission March 20, 2013 Page 4 of 14 Ms. Stromberg stated the TOD Overlay zoning allows for a mixed use development without requiring conversion of the underlying commercial zoning. Ms. Stromberg stated the subject property is located on the northeast corner of Interstate 694 and East River Road. It is bordered by the railroad tracks to the east and an industrially zoned property to the north. The property was zoned M-2, Heavy Industrial from the late 1950's until 2009. The property as originally developed in 1969,when an office/warehouse building was constructed. Ms. Stromberg stated in 1969, the site served as the headquarters, research, and production facility for LaMaur Inc., who manufactured toiletries and cosmetics. Several additions were added to that original building, which eventually made the building approximately 450,000 square feet in size. In 1999, Tiro Industries, Inc., purchased the property from LaMaur Inc., and they were in business at this location until May of 2005. Since the time it was known that Tiro Industries, Inc. would be vacating the building, the owners had very little success in attracting industrial tenants to occupy the building and believed that, with industrial trends changing and manufacturing users few,the property would be much more attractive to tenants as a commercial property. Ms. Stromberg stated Tiro Industries Inc., sold the property to JLT Group in 2005; and JLT Group applied for a rezoning from M-2, Heavy Industrial to C-3, General Shopping. The owners did not have a commercial tenant identified to occupy the site; however, they were asking the City Council to consider the rezoning so they could market the site to potential commercial buyers. Once a user or users were identified for the site, the rezoning was to come back to the City Council for second reading of the ordinance. Ms. Stromberg stated the City Council approved the first reading to rezone the property in September 12, 2005 and set a 24-month timeframe for the rezoning to come back for second reading. After the 24- month timeframe had expired, an 18-month extension was approved to give the owner additional time to come before the City Council for second reading. The Council eventually approved a commercial/retail master plan for the site with the commercial rezoning in February of 2009. Once that was approved, if the plan varied in overall footprint size by 10 percent or more, it would come back to the City Council for further review. Otherwise the Master Plan that was approved, including a portion of the 57th Avenue extension, was the plan that was to be built. Ms. Stromberg stated market indicators soon made it clear that this site and approved master plan would need to be re-evaluated. The window closed on the sale of the land to the interested retailer. Instead, Sam's and Walmart rebuilt their stores in Fridley, both in their current location. Subsequent to that decision, the market for big box completely dried up; and real estate investment/analyst folks began to predict at least a 10-15 year dry spell before the market would come back to large retail centers like the one envisioned. Too many centers did not make it and are now sitting empty, needing to be refilled or re- purposed. Also, without certainty of when a 57th Avenue connection may happen, the market looking at this site was very limited. Ms. Stromberg stated the property owner filed for bankruptcy and eventually the bank holding the mortgage on this site insisted that the land price be reduced and that the land would then be sold. This opened the door to many potential prospects, the majority of which wanted to purely develop industrial warehouse alone. We had a large developer who indicated they placed an offer on the property contingent on City approval of two large industrial warehouses to fill the site. After evaluating their use Planning Commission March 20, 2013 Page 5 of 14 against the TOD overlay, staff made it known to the developer that they could not support a purely industrial warehouse proposal. Ms. Stromberg stated John Allen and his Industrial Equities Group were then successful in negotiating purchase of the property and have committed to working with the City and the development market to bring a mix of uses and TOD design to the site to make the project work for all. He met several times with staff and proposed the current development of a mixture of uses. Ms. Stromberg stated an extremely important aspect to what develops on this site also has to do with the Northstar Transit Tax Increment Finance District; that the Minnesota Legislature has allowed the City of Fridley the Authority to create. This development will be within that district and would be the first project to produce increment for infrastructure improvements in the Transit TIF District. The City Council will hold a public hearing on May 6,2013, regarding the creation of that district. Ms. Stromberg stated the petitioner has submitted a TOD Master Plan request for the property located at 5601 East River Road. The property is approximately 27 acres in size, and the TOD Master Plan was developed with the City's desire to extend 57`h Avenue from Main Street through the subject property to East River Road. In order to allow for the 57th Avenue extension, 68,921 square feet of land area will need to be dedicated as right-of-way easement from this property. This square footage does not include the land area for the 57`h Avenue extension that is owned by US Corrugated which is north of the subject property. Multiple easements on the property, including sanitary sewer and Xcel Energy easements, limit how the site can be master planned. The petitioner envisions the property developing with three main development areas. Ms. Stromberg stated the first area that will be developed is along the BNSF railroad tracks on the east side of the property. The petitioner is proposing to construct a 134,192 square foot one-story office- warehouse building. The front of the building will face the newly constructed "development parkway" that will run north and south through the subject property. The service yard for deliveries will face the railroad tracks and a landscape buffer will be installed between the railroad tracks and the buildings service yard to provide the necessary screening required from this rail right-of-way. The petitioner believes that constructing a high quality industrial building to provide a screen between the BNSF railway and the rest of the development area;will attract high class office and residential tenant prospects. Ms. Stromberg stated this office/warehouse development will have 269 parking stalls. The building will be constructed of precise concrete panels with a uniform rib texture and smooth band striping with a 32- foot clear height inside. The aluminum framed glass windows will extend to 14 feet above grade and full height glass will accent the corner and center entries along with brick detailing and matching aluminum- edged canopies. Ms. Stromberg stated there are two remaining"schematically planned" development areas, which would include a professional office development and a multi-family/senior residential housing project. Ms. Stromberg stated for the purpose of this application,the petitioner has submitted a site plan showing what the potential could be for these two areas and he is currently marketing this site to parties in the hopes to achieve the proposed uses. The manufacturing/office building will begin construction as soon as this year, while the petitioner searches for potential users to achieve the mixed-use dense, development the City is looking to have on this property. If the following "schematically planned" developments do not occur as proposed in the submitted site plan, the petitioner will come back before the Planning Planning Commission March 20, 2013 Page 6 of 14 Commission and the City Council for a TOD Master Plan amendment. Further review may be triggered by a 10 percent change in the total building's footprint square footage or a change of use. Ms. Stromberg stated the first "schematically planned" development could include two (5) level, 150,000 square foot professional high quality designed office buildings with a 2-story common core element that connects the two office buildings and underground parking. The buildings will be positioned to align with the south-western edge of the property which abuts the off-ramp from Interstate 694. This building will also be connected to a 4-level parking structure, 1-level below grade, 1-level at grade and 2- levels above grade. A total of 1,311 parking stalls will accommodate this development. Ms. Stromberg stated the second "schematically planned" development could include a 3-4 story, 120 unit multi-family or senior housing development with underground parking for 112 stalls and at grade parking for another 88 stalls. The building design will be of a high quality finish to comfortably co-exist with the professional office buildings adjacent to it. This building will be positioned to align with the corner of East River Road and the future 57`h Avenue extension. Ms. Stromberg stated all areas within the development proposed include extensive landscaping with required storm ponding elements. The remaining development area will need to be seeded, mowed and maintained until development occurs. Ms. Stromberg stated the petitioner envisions this development occurring whether or not 57`h Avenue is extended from Main Street to East River Road. He wanted to design the development showing the 57`h Avenue extension; however, he has stated that he does not feel that it is needed to make this development a success. The site has also been analyzed by staff and the petitioner's consultant to ensure that traffic flow will work on this site with and without the 57"' Avenue extension and that the "development parkway"will connect to the extension when it's constructed. Ms. Stromberg stated the Planning Commission and City Council will recall that in 2011, the Transit Oriented Development (TOD) Overlay District was approved. The subject property is within the TOD Overlay District. See map to the right, for the TOD district boundaries. Ms. Stromberg stated the purpose for the adoption of the TOD Overlay is to: A. Implement code requirements that will encourage dense, mixed use, pedestrian-friendly development within a one-half mile of the Northstar Commuter Rail Station in Fridley. B. Create multi-modal connections to the Fridley Northstar Commuter Rail Station that allow for safe access to the station no matter what means of transportation someone uses. C. Create a neighborhood.identity with the Northstar Station that promotes the use of mass transit, human interactions, safety and livability. D. Reduce automobile dependency by locating a variety of land uses within a half mile of the train station. E. Provide life cycle housing for people of different income levels and housing space needs within one half mile of the train station. Ms. Stromberg stated the proposed development is the City's second TOD Overlay Master Plan request that aims to achieve the desires the City set forth when creating this district. As a result,the project needs to comply with the TOD standards that were designed to enhance the pedestrian scale and safety of any particular development. The TOD Overlay allows for flexibility when designing a redevelopment project Planning Commission March 20, 2013 Page 7 of 14 that encourages dense, mixed use, pedestrian-friendly developments. It was also created to minimize the use of the automobile by allowing reduction in parking requirements, if certain conditions can be met and sidewalks are constructed. Ms. Stromberg stated, as set forth above, the proposed project will include the construction of several new buildings that will offer a mix of uses, such as an office/warehouse building, a professional multi- story office building and a multi-level residential building. The petitioner is very interested in designing the project to TOD standards as the criteria will enhance the development, through use of high quality building materials and design, as well as enhance pedestrian site circulation through installation of sidewalks which will provide better access to public transportation such as the Northstar Commuter Rail and the Metro Transit bus system. Ms. Stromberg presented a table showing the TOD development regulations and how the petitioner plans to comply with them. Ms. Stromberg stated the petitioner has designed a good project that overall achieves what the City was hoping for with a TOD development. The proposed office/warehouse building will be backed up towards the railroad, with an architectural design and concept that will enhance the property. The "schematically planned" 5-story office building with an attached parking structure and multi-family/senior housing building encourages the dense, mixed used development that the City was looking for on this site. The site circulation and connections to existing walkways/bikeways will enhance the multi-modal opportunities for this property and Fridley as a whole. Constructing additional connections and landscaping features/amenities within the future developments on the site will only continue to enhance this project. Ms. Stromberg stated the amount of building square footage on this site will require the petitioner to complete an Environmental Assessment Worksheet (EAW). The petitioner's consultants are working on completing that document now,which will include a traffic analysis. Ms. Stromberg stated staff received comments from the Minnesota Department of Transportation,which recommends that a traffic study be completed due to the volume of new trips to this location and the proximity of the Interstate 694 and East River Road interchange. Ms. Stromberg stated City Staff recommends approval of the TOD Master Plan Amendment with stipulations as it meets the purpose of the TOD Overlay District; and the proposed uses meet the goals highlighted in the 2030 Comprehensive Plan. The stipulations are as follows: 1. The property shall be developed in accordance with the master site plan, A100 by Finn Daniels Architects dated,2/15/13. 2. The office/warehouse building shall be developed in accordance with the architectural office/warehouse exterior elevations sheet, A300, by Finn Daniels Architects dated, 2/15/13. 3. The petitioner shall obtain all necessary permits prior to construction. 4. The petitioner shall meet all Building code,Fire code,and ADA requirements. 5. The petitioner shall ensure that the proposed free-standing signs meet code requirements and shall obtain a separate sign permit prior to installation. 6. Landscape plan to be reviewed and approved by City Staff prior to issuance of building permit. 7. The petitioner shall receive Mississippi Watershed Management Organization approvals prior to issuance of a building permit. Planning Commission March 20, 2013 Page 8 of 14 8. City engineering staff to review and approve grading, drainage and utility plans prior to issuance of building permits. 9. The petitioner shall pay all water and sewer connection fees prior to issuance of a building permit. 10. Drip irrigation shall be installed in all median and walkway planting areas and a plan shall be reviewed and approved prior to issuance of a building permit. 11. All lighting in the development shall be shielded and downcast. Lighting shall be provided through free-standing lighting which shall adequately illuminate the sidewalk. 12. All crosswalks shall be installed using a colorized pavement pattern when connecting the sidewalk on each side of a driveway. A minimum of two colorized crosswalks shall be incorporated that connect the office/warehouse building to the rest of the development and shall be installed with the construction of the "development parkway." All connections shall be accessible. 13. The petitioner shall receive and file at Anoka County an access agreement from the neighbor at 5851 East River Road for the portion of the proposed 57`h Avenue extension that extends onto their property. 14. Additional walkways shall be incorporated on the proposed future professional office development and multi-family/senior housing development to ensure internal circulation and adequate connections to existing mass transit opportunities. Plan to be reviewed and approved by City staff prior to issuance of a building permit. 15. Additional outdoor amenities and landscaping shall be installed on the multi- family/senior housing development portion of the project. Plan to be reviewed and approved by City staff prior to issuance of a building permit. 16. Building fagade on the proposed future professional office development and multi- family/senior housing development shall comply with TOD requirements. 17. The "development parkway" with medians and landscaping shall be installed as part of the construction of the office/warehouse building. 18. The second median within the "development parkway" shall be eliminated or a surmountable curb shall be installed to allow ingress and egress for truck traffic and the cul-de-sac on the south end of the "development parkway" shall also be redesigned to accommodate for truckibus traffic. 19. The petitioner shall maintain, through sod or seed and mowing, the remaining development area after construction of the office/warehouse building until development occurs. 20. The furthest east driveway shall be removed when 57`h Avenue is extended from Main Street to East River Road;this removal shall not constitute a taking. 21. The petitioner shall complete an environmental assessment worksheet (EAW), which shall include a traffic study. The recommendations found in these documents shall be adhered to by the petitioner. The City will determine if an environmental impact statement (EIS) is required upon completion of the EAW. If an EIS is required the developer shall provide a complete EIS in accordance with MN State Rule 4410. 22. If the square footage of the footprint of any of the buildings proposed changes by more than 10 percent at that phase of the development or the proposed building use changes, a TOD master plan amendment shall be required. 23. A Development Agreement outlining the Developer's obligation to install utilities, etc., will be prepared by the City and shall be signed by the Petitioner prior to issuance of a building permit for the office/warehouse building. Planning Commission March 20, 2013 Page 9 of 14 Vice Chairperson Oquist asked if where are the plans at to extend 57`h Avenue? Scott Hickok, Community Development Director, replied they are continuing the planning process on that. In fact it appears an underpass will be the likely preferred solution to extending 57`h Avenue. Timing of that is going to be the critical piece. It is a very expensive project and will not happen without the concurrence of BNSF, and the timing of the installation will have to do with when they will allow the City to get under there. It will require federal funding and state and various other levels of governmental funding which will happen through a series of applications the City makes when those funding cycles happen. It is the City's goal to do that and it's a priority. Very realistically it may be five years or even longer before any sort of an extension could happen. In the stipulation where it talks about taking out the easternmost driveway on the site plan, they will see that it does allow trucks to get out right now on the alignment that would eventually be depressed as an underpass. That is where that piece would come out at such time as they do the underpass and then they have Plan B routing for the trucks that allow them to circulate in and circulate out onto that development parkway rather than going out onto the 57`h Avenue extension. Vice Chairperson Oquist stated he remembers the last time a couple of years ago there was quite a bit of discussion from the neighbors to the north in regard to that intersection. There was concern because they also have truck traffic. Is that still a question? Mr. Hickok replied, staff has talked to the developer about that. In the presentation they called the property to the north, U.S. Corrugated; it is now "Capstone." U.S. Corrugated had negotiated with the previous property owner and, although staff is not certain exactly where that negotiation ended because that development did not happen, they are not certain whether they consummated any sort of an agreement. However, each of these properties depends on the other for access. Capstone depends on this project because they drive across it to get into their southern end. This project depends on Capstone for that little triangular piece that cuts across where 57`h Avenue extension would be. The developer is aware that they need to work out some sort of arrangement. Staff is very optimistic this can all work quite well. As far as the truck information goes, additional truck analysis will be necessary. Staff does know that turning movements and so forth were designed to work here and, in their discussion with the previous owners (U.S. Corrugated), they were not using the docks on the other end and did not anticipate much of a turning movement going across 57`h Avenue. They.have not had that same discussion with Capstone but, in staff's observations of it,they use the building very much the same way their predecessor did. Vice Chairperson Oquist asked how are they going to get to the Northstar terminal from this property? Will there be walkways? Ms. Stromberg replied,there will be connections made. There currently is a sidewalk on the west side of East River Road. Mr. Hickok stated, yes. It is a bit of a circuitous route right now. In order for them to get to the station, they could cross at the signal light and then take the trail along the west side up to the signal at 6151 Avenue to cross. Vice Chairperson Oquist stated they have to make sure that is maintained and plowed so they can actually walk it. Planning Commission March 20, 2013 Page 10 of 14 Mr.Hickok stated they do also believe that through future TOD developments there will be a more direct routes created which would not make people have to take such a circuitous route across East River Road only to come back across again when they get to the station. Of course with the underpass there will be pedestrian/bikeway links as well. Also, there is bus route there. Train and bus will be important access there. Commissioner Saba asked whether there has been any thought of building a pedestrian walkway over East River Road? Especially if there is senior housing put in. Mr.Hickok replied, not at this time. There are audible crossing signals at 6151. They anticipate that same kind of audible crossing signal device will be an important feature at some point in the future. Hopefully their first pedestrian/bikeway crossway will be at University and 615`. Commissioner Sielaff asked regarding"level speculative office". What does that mean? Ms. Stromberg replied, it is just a general term that staff uses when the exact type the users inside the space are not known but will be of an industrial nature, with a mixture of office, warehouse, and potentially manufacturing. Commissioner Sielaff asked then how much can they change? Scott Hickok replied, the users, though speculative, have to meet the code. Since this is a TOD and essentially a planned unit development, they would expect this would be technical and industrial type users. They do have the good benefit of having two other John Allen projects in Fridley and know he is very careful in his tenant selection. The term he uses is "blue chip" tenants, ones he knows are going to be long-term tenants and will coincide with the other tenants in the building. Not only would it meet the zoning requirements of the TOD, but he is an owner who makes sure the tenants are able to happily co- exist within a complex. He typically finds tenants who are very long-term tenants. Oftentimes they are a very technical type of tenant that have precision-type industries and type of thing you would not want to move often. One of the John Allen buildings exists right now is along 73`d behind the Holiday/Taco Bell. Also, down on Main Street where the Guardian Industries building had once been,just south of Reviva is a complex that has two buildings. Very nice looking buildings. This building is going to be even a step up in terms of additional glass and higher quality exterior materials. Vice Chairperson Oquist asked, what kind of timing of they talking about for the phases of this development? Mr. Hickok replied the piece that is most known to John Allen and the City right now is that first building because he would be ready to do it as soon as the EAW/EIS is done and the Planning Commission and Council's approval. As far as the office and residential buildings, Mr. Allen has been speaking with some very interesting prospects, and he would be ready to go with those as soon as he has a prospect ready to fill the locations. He does believe that the corner, for example, is a world headquarters type location. Vice Chairperson Oquist asked the petitioner whether they have any problems with the stipulations? Scott Wiestling, Finn Daniels Architects, stated, no. They have had several discussions with staff and were ready for those. They know there are some issues to resolve yet before they bring the master plan Planning Commission March 20, 2013 Page 11 of 14 before them. It seems a lot of the multi-family housing developers they work with are interested in this parcel. It is a great location, close to downtown. He presented some color sample showing the color scheme they would be using. Commissioner Sielaff asked whether there were any financing issues? Mr. Wiestling replied, he does not believe so. The TIF will play a part of that. That question is really outside of his realm. Commissioner Velin asked if they were looking at senior multi-family units? Mr. Wiestling replied, they are marketing the site right now to different developers who develop that type of housing. Not sure if it would be senior or could be more of affordable housing. He is having some of those developers do some diligence and find out which would be served by this project. Commissioner Sielaff asked how does this fit in with the City's comprehensive plan? Mr. Hickok replied, this matches well as the comprehensive plan guides this property as redevelopment district. Staff anticipated in the language that redevelopment district in this area would likely mean a mix of uses that could include residential, commercial, or industrial office. The zoning (the TOD overlay) on this property also matches in well with that redevelopment district. It is kind of a multi-tiered zoning. Justin Foell, 6005 Gardena Circle, stated he has the same concerns regarding how people are going to be able to walk to the Fridley station on East River Road. Even on a nice spring day like today the trail remains partially plowed. This being a transit oriented development project he wants to reinstate the purpose and suggest that, before it gets approved, that there is a plan to be a sidewalk constructed on the east side of East River Road from 57`h up to 61". There is definitely going to be an issue. People will be walking in East River Road up to the development to get to the sidewalk. Vice Chairperson Oquist stated something like that really needs to be considered particularly when they get to the multi-family and the office complexes. Probably not so much the warehouse unless it turns into a lot of office space. They need to keep the foot traffic on the east side of East River Road. MOTION by Commissioner Velin to close the public hearing. Seconded by Commissioner Saba. UPON A VOICE VOTE, ALL VOTING AYE, ACTING CHAIRPERSON OQUIST DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING WAS CLOSED AT 7:50 P.M. MOTION by Commissioner Dunham approving Transit Oriented District(TOD)Master Plan TOD #13- 01, by Industrial Equities., LLP, to allow the construction of an office/warehouse building, and a future office and multifamily housing development, generally located at 5601 East River Road NE with the following stipulations: 1. The property shall be developed in accordance with the master site plan, A100 by Finn Daniels Architects dated,2/15/13. 2. The office/warehouse building shall be developed in accordance with the architectural office/warehouse exterior elevations sheet, A300, by Finn Daniels Architects dated, 2/15/13. Planning Commission March 20, 2013 Page 12 of 14 3. The petitioner shall obtain all necessary permits prior to construction. 4. The petitioner shall meet all Building code,Fire code, and ADA requirements. 5. The petitioner shall ensure that the proposed free-standing signs meet code requirements and shall obtain a separate sign permit prior to installation. 6. Landscape plan to be reviewed and approved by City Staff prior to issuance of building permit. 7. The petitioner shall receive Mississippi Watershed Management Organization approvals prior to issuance of a building permit. 8. City engineering staff to review and approve grading, drainage and utility plans prior to issuance of building permits. 9. The petitioner shall pay all water and sewer connection fees prior to issuance of a building permit. 10. Drip irrigation shall be installed in all median and walkway planting areas and a plan shall be reviewed and approved prior to issuance of a building permit. 11. All lighting in the development shall be shielded and downcast. Lighting shall be provided through free-standing lighting which shall adequately illuminate the sidewalk. 12. All crosswalks shall be installed using a colorized pavement pattern when connecting the sidewalk on each side of a driveway. A minimum of two colorized crosswalks shall be incorporated that connect the office/warehouse building to the rest of the development and shall be installed with the construction of the "development parkway." All connections shall be accessible. 13. The petitioner shall receive and file at Anoka County an access agreement from the neighbor at 5851 East River Road for the portion of the proposed 57`" Avenue extension that extends onto their property. 14. Additional walkways shall be incorporated on the proposed future professional office development and multi-family/senior housing development to ensure internal circulation and adequate connections to existing mass transit opportunities. Plan to be reviewed and approved by City staff prior to issuance of a building permit. 15. Additional outdoor amenities and landscaping shall be installed on the multi- family/senior housing development portion of the project. Plan to be reviewed and approved by City staff prior to issuance of a building permit. 16. Building fagade on the proposed future professional office development and multi- family/senior housing development shall comply with TOD requirements. 17. The "development parkway" with medians and landscaping shall be installed as part of the construction of the office/warehouse building. 18. The second median within the "development parkway" shall be eliminated or a surmountable curb shall be installed to allow ingress and egress for truck traffic and the cul-de-sac on the south end of the "development parkway" shall also be redesigned to accommodate for truck/bus traffic. 19. The petitioner shall maintain, through sod or seed and mowing, the remaining development area after construction of the office/warehouse building until development occurs. 20. The furthest east driveway shall be removed when 57`h Avenue is extended from Main Street to East River Road; this removal shall not constitute a taking. 21. The petitioner shall complete an environmental assessment worksheet (EAW), which shall include a traffic study. The recommendations found in these documents shall be adhered to by the petitioner. The City will determine if an environmental impact Planning Commission March 20, 2013 Page 13 of 14 statement (EIS) is required upon completion of the EAW. If an EIS is required the developer shall provide a complete EIS in accordance with MN State Rule 4410. 22. If the square footage of the footprint of any of the buildings proposed changes by more than 10 percent at that phase of the development or the proposed building use changes, a TOD master plan amendment shall be required. 23. A Development Agreement outlining the Developer's obligation to install utilities, etc., will be prepared by the City and shall be signed by the Petitioner prior to issuance of a building permit for the office/warehouse building. Seconded by Commissioner Saba. UPON A VOICE VOTE, ALL VOTING AYE,ACTING CHAIRPERSON OQUIST DECLARED THE MOTION CARRIED UNANIMOUSLY. 3. Receive the Minutes of the February 7, 2013, Housing and Redevelopment Authority Commission Meeting. MOTION by Commissioner Saba to receive the Minutes. Seconded by Commissioner Solberg. UPON A VOICE VOTE, ALL VOTING AYE, ACTING CHAIRPERSON OQUIST DECLARED THE MOTION CARRIED UNANIMOUSLY. 4. Receive the Minutes of the January 7, 2013, Environmental Quality and Energy Commission Meeting. MOTION by Commissioner Velin to receive the Minutes. Seconded by Commissioner Sielaff. UPON A VOICE VOTE, ALL VOTING AYE, ACTING CHAIRPERSON OQUIST DECLARED THE MOTION CARRIED UNANIMOUSLY. OTHER BUSINESS: Ms. Stromberg stated the Islamic University Special Use Permit and the Pet Vet Special Use Permit that were before the Planning Commission in February were both approved by the City Council. She also stated that the next meeting is scheduled for April 17, 2013. Mr. Hickok stated there have been some questions about what is the building being remodeled next to Ashley Furniture. It is Furniture Mart, which is under the same umbrella of ownership as Ashley Furniture. Their desire is to make a furniture plaza basically with a couple of different furniture options. The commission is probably also noticing a lot of activity at the Fridley Market site where Cub Foods is. This spring there is a lot of fun stuff that is going to be happening. The front portion of that building, 50 feet or more, will be coming off and then the exterior skin will be going on. On the highway side the Cub Foods end looks pretty complete now, and the color scheme carries on down the building. As they get more tenants identified, there will be more architect to go on that end of the building and then surrounding the building there is going to be some interesting features. The owners may also be ready to start construction on both tenant buildings along 57`h Avenue this summer. Planning Commission March 20, 2013 Page 14 of 14 Commissioner Velin stated McDonald's is going in one. Mr.Hickok replied,yes,McDonald's is one of those two buildings. Commissioner Saba asked what is happening with the old Gander Mountain space? Mr. Hickok stated, the City Liquor store is in part of it. The liquor store is in its new location, and the City has been told there is potentially a tenant that would wrap around the liquor store and put some life and excitement on the back of the building facing the highway. Vice Chairperson Oquist stated he has been approached by a couple of the neighbors stating the resurfacing of Hackmann Circle, that whole area, was poorly done. It is literally like driving on a gravel road because the pea rock did not seal and a lot of it is up on the boulevards. The people are kind of getting upset about it. It needs to be addressed and resurfaced. Mr. Hickok replied the best thing to do is have a spokesperson call Jim Kosluchar. The City will be out when weather provides. ADJOURN MOTION by Commissioner Saba adjourning the meeting. Seconded by Commissioner Solberg. UPON A VOICE VOTE, ALL VOTING AYE, ACTING CHAIRPERSON OQUIST DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE MEETING ADJOURNED AT 7:57 P.M. Respectfully submitted, y� } Denise M. Johnson Recording Secretary r ACTION ITEM rJ FRIDLEY PLANNING COMMISSION CITY OF FRIDLEY APRIL 17, 2013 Date: April 10, 2013 To: Scott Hickok, CD Director From: Paul Bolin, Acting Executive HRA Director Subject: Adjustment to Boundary of TIF Redevelopment Project Area The 2007 and 2008 Minnesota legislative sessions gave the City of Fridley the ability to create a Transit TIF District and to pool tax increment from 3 existing districts to pay for public improvements around the Northstar Station Area. The boundaries of the Northstar Transit Station District, were defined by the legislature and include the properties on the following map. g , ray City of 0 - _ 1� Fridley ,�_aq���fF i Northstar Transit -1 1 �._lrl Station District " r TIF District#22 ' z - owaas ar � x to +e ■—r4 to { j ,. -- Because of the poor economy in 2008, the Housing and Redevelopment Authority decided to wait until development was likely to happen in order to maximize the number of years tax increment could be collected. John Allen's proposal for the former JLT site is the type of project the Authority had been waiting for. The increment generated by this new development will allow the Authority to assist redevelopment in the Northstar Transit TIF area. At the time that the City and Authority adopted its first TIF District, the City and Authority created a single project area a nd a single g development p P rogram. This means that every time a new TIF District is created, it is done inside the program. This allows the Authority to spend its resources anywhere within the Redevelopment Project Area (outlined in Blue on the map below) and not just within the specific tax increment district. CITY OF r FRIDLEY Redevelopment Project Areas and Tax Increment Financing Districts f 1 i✓t� 411Iv o i { ttJ al ( t i . L r t e t L' n x ll t Lv{� t LEGEND Exlsmg TIF District E=sting Redevelopment Project Area i 1 Water f=eature v The existing boundary of the Redevelopment Project Area, does not include 3 of the parcels the MN Legislature allowed in the Northstar Transit Station TIF District. The discrepancy is shown on the maps below. Statute requires a review by the Planning Commission, to determine that the inclusion of the parcels are in keeping with the City's overall development goals. A public hearing, before the City Council, is also required to change the boundary of the existing Redevelopment Project Area. The three parcels (labeled 2, 3, and 4 below) include a large vacant property owned by the HRA and two (2) eleven unit apartment buildings. Inclusion of these parcels will make them eligible to use TIF funds for future improvements. Existing Boundary New Boundary Parcels 2,3&4 added — 2 ~� rrrrrrrr � ! 26 37 F , 3 —{E 1 27 _ 39 § —1 40 41 1, 26 V I 16 1 43 17 18 i 30 45 45 Recommendation: Staff recommends that the Planning Commission approve a resolution, adjusting the boundary of TIF Project Area #1 to include all parcels in the Northstar Transit Station District. A public hearing and final action on this item will take place before the City Council on May 6, 2013.