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Memo- Hennepin County Public Works PropertyMemorandum I. Purpose of Memo II. Overview JK03097A PLANNING & ECONOMIC DEVELOPMENT To: The Honorable Mayor and City Council Copy; Steve Mielke, City Manager From: Jim Kerrigan, Planning & Economic Development Director Date: March 4, 1997 Subject: Hennepin County Public Works Property At the January 14 work session, there was a discussion concerning future reuse of the Hennepin County Public Works property. As part of this meeting, officials from SuperValu detailed an office /warehouse project that they would like to construct on this property. The Council concluded their discussion by requesting some additional information on the SuperValu proposal. This has now been prepared, and the item has been placed on the March 11 Council work session agenda. As previously detailed, Hennepin County is now under construction of their new public works facility in Medina. They have stated their present schedule should have them in their new site in the mid to latter part of 1998. In previous discussions, staff has been told that the county will probably put the property up for sale through a sealed bid process sometime in the latter part of 1997. In the previous discussion of the SuperValu proposal, there was a concern expressed by the Council that the project would be primarily warehouse; however, a few Council members stated they might be interested if SuperValu's development on the county property would help to facilitate a redevelopment of the 28 -acre north annex property (former Red Owl operation). Attached is a schedule that has been prepared by SuperValu identifying when they would envision vacating this property and therefore making it available for possible redevelopment. In meeting with SuperValu, they have stated they are eager to receive direction from the Council on whether there is interest in their project for the county property. Representatives will be at the March 11 meeting to provide more detail and answer questions concerning their project. III. Primary Issues to Consider 1. SuperValu Proposal Attached is a site plan prepared by SuperValu for their project on the Hennepin County property. The specifics of this project would involve the following: o Approximately 450,000 square feet of warehouse space and 50,000 square feet of office and employee facilities (there would be the possibility that the warehouse space would be expanded westerly on the site at some future date) o The warehouse space would have a height of approximately 45 feet o Exterior material would probably be tip -up, textured concrete panels o Dock doors would be located along the entire north and south parameters of the building o Truck traffic would enter and exit the site from the north; automobile traffic would be oriented to the south o SuperValu has stated that they would do extensive berming and landscaping to separate the truck - loading area on the south from the adjacent neighborhood o The estimated construction costs would be $20 to $25 million In considering the SuperValu proposal, the Council needs to be aware of the following: o The project as proposed would be, for the most part, warehouse space, which would create limited jobs for the City and generate less property taxes than some of the other projects that have been discussed for this site. o If SuperValu cannot accommodate their future growth needs in Hopkins, they may be forced to look at relocating all or a portion of their operation out of Hopkins. This would result in a loss of 1,230 jobs for the City, of which 133 are Hopkins residents. o The Park Valley neighborhood appears to be supportive of SuperValu locating on this property. In the past, SuperValu has done a good job of buffering their development from residential properties and dealing with traffic issues and concerns. JK03047A 3K0304'A Also, as detailed previously, if SuperValu constructs on the county property, they have stated that they would vacate their use of the north annex property and put it up for sale, which could possibly result in redevelopment of the site. Attached is the following information, which has been prepared in response to a previous Council request concerning redevelopment of this property: O A memo from Nancy Anderson concerning redevelopment alternatives based on both industrial and business park zoning O A memo from Jim Benshoof of Benshoof and Associates, Inc., providing a preliminary analysis addressing the alternatives for improved access to the site The Council needs to understand that by placing the north annex property on the market for sale, there are two scenarios that could occur: o A buyer would utilize the existing buildings, with possibly some improvements O A buyer would demolish the existing buildings and redevelop the site based on the zoning in place at the time 2. What actions have been previously taken by the City /HRA concerning this parcel? O In September 1994 City staff met with representatives of SuperValu, who expressed an interest in moving their warehouse operation north of Excelsior Boulevard to this location; however, they later notified the City that they were not interested in constructing on the subject property. o In January 1995 the City /HRA entered into an option agreement with Hennepin County for the purchase of the subject property. The purchase price established in this agreement was $4.5 million. The City /HRA was required to provide a $225,000 option payment. O Staff met with the Park Valley neighborhood to discuss various redevelopment options. Overall, the majority of people seemed to be in favor of some type of office /manufacturing /industrial use. There were concerns about any increase in traffic to the south of the subject site, especially trucks. O In early 1995, Hoisington Koegler Group, Inc., completed an analysis of redevelopment concerning this property. Within their report they detailed a variety of recommendations they felt should be implemented in conjunction with any redevelopment project. O Staff was authorized to prepare a request- for - qualifications (RFQ) to .determine developer interest. Eight developers responded to the RFQ. Five developers were interviewed by the HRA. Most of these developers stated IV. Conclusion Based on existing circumstances, the county will probably put their Hopkins property up for sale some time toward the latter part of this year or early 1998. They have stated there have already been a number of interested developers, who have contacted them. It is anticipated that many of the groups who JK03041A that, based on the option purchase price of $4.5 million, they would require some public subsidy. o Staff secured an appraisal of the subject property. The value as determined by this appraisal is $2.65 million. o In June 1996 the HRA terminated the option agreement with Hennepin County. 3. Land Use Issues As stated previously, the property is zoned 1 -2, General Industrial, and the Comprehensive Land Use Plan details the majority of the site as office park, with the southern portion medium density residential. In meeting with the Park Valley residents, they have stated they are not supportive of residential, other than possibly single family, detached. The present zoning would allow for a variety of industrial uses. Some of the uses allowed under this zoning would probably be considered less than desirable; however, it is staffs opinion that because of the potential cost and desirability of this property, it will develop with the "higher end industrial" uses. Also, the business park zoning designation that is presently being considered by the Council could be placed on this site to help ensure that this would be the case. 4. Discussion with Hennepin County In mid - January, City staff met with county officials to discuss various issues regarding this project. The basic conclusion of this discussion was the following: o The county appears to be willing to try to work with the City to help facilitate a development o The county may be willing to consider some type of process to re- appraise the property; however, they still feel this at this time the property has a value of $2.50 per square foot o The County is not in favor of using tax increment on this property and stated they would probably place a covenant on the deed, restricting its use 3K0304'A responded to the HRA RFQ will probably submit offers on the property. SuperValu would also have the ability to make an offer at this time. In discussing alternatives, the Council needs to decide whether they wish to have the HRA again get involved in trying to facilitate a specific project, whether it be the SuperValu proposal or some other project. From the staffs perspective, it would only be recommended that the HRA supersede the County sale process as detailed above if there is a project the Council feels would have a very positive impact on the community and it is felt it would not occur without HRA involvement. If the HRA has an interest in a specific project, the next action would be to have the HRA authorize staff to initiate a process with the county and developer to facilitate the project. As part of this action, staff would also propose that a development agreement be negotiated detailing the following: O The project would be constructed in accordance with a submitted site plan and time schedule. O The developer should be required to make an up -front payment at the time the development agreement is executed to ensure that they are truly interested in proceeding with the project. (The county does not want to go through the effort of again negotiating an option with the HRA unless everybody is confident it will result in a project.) Finally, the developer would also be required to reimburse the HRA for the amount of the option payment and other costs incurred by the HRA in facilitating the transaction, i.e., legal costs, appraisal costs, etc. o The option would be transferred by the HRA once the developer had complied with all the terms of the development agreement necessary to actually facilitate construction of the development. O The project would not receive public assistance. • In the case of SuperValu, there should also be language detailing how the north annex property would be made available for development. V. Attachments O Letter, site plan, vicinity map, and planning schedule from SuperValu O Preliminary site analysis prepared by Hoisington Koegler Group, dated January 10, 1995 o Site Map O Memo from Nancy Anderson, dated February 11, 1997 o Memo from Jim Benshoof of Benshoof & Associates, Inc., dated March 3, 1997 Alternative Uses Hoisington Koegler Group Inc. 1< MEMORANDUM TO: Jim Kerrigan FROM: Mark Koegler DATE: January 10, 1995 SUBJECT: Hennepin County Public Works Site - Preliminary Analysis This memorandum contains a preliminary analysis of the Hennepin County Public Works site which currently comprises approximately 40 acres bounded by TH 169 on the east, 3rd Street South on the north and west, and 5th Street South on the south, This analysis was prompted by Hennepin County's decision to move the existing facility and a subsequent decision by the City of Hopkins to enter into an agreement with Hennepin County which essentially enables the City to explore development opportunities on the property over the next six month period. The methodology used in this analysis includes a three step approach. It reflects a decision on the part of the City to convert the site to a business park in the future. Although this decision may be construed as a "predetermined outcome ", this analysis effort will identify alternative land uses should such be appropriate. The first portion of the approach examines a listing of alternative uses of the property and cites the positive and negative aspects of each. Secondly, a detailed site analysis is presented in both narrative and graphic formats in order to objectively analyze the physical aspects of the property. Finally, this analysis highlights not only the recommendation of' the future use of the property but it also suggests a design framework which should be applied as specific development proposals are formulated. The Hopkins Comprehensive Plan that was adopted in 1989 called for the public works site to be redeveloped with offices on the northern half and attached housing on the southern half. The plan referenced the site's "visibility from and easy access to Highway 18" (now TH 169), and the fact that the property to the north is designated as a light rail transit (LRT) station site. As was mentioned previously, the initial assumption that forms the core of this analysis is that the preferred use of the property is a business park. If one were to look at the property with a blank slate, other uses that could be considered inckude: single - family residential, multi- family residential, retail, office and office warehouse, industrial, or a mix of uses. The 1989 plan called for a mixture of residential and commercial use of the property. Land Use - Environmental • Planning %Design Hennepin County Public Works Site Analysis Memorandum January 10, 1995 Page 2 During the course of upcoming meetings, Hopkins' staff is likely to be asked why this site is best suited for a business park rather than one of the other potential uses. The first part of providing an answer to that question involves an initial identification of factors that inherently make the site less desirable for other uses. The following observations are related to that topic: Residential Uses: The housing stock of the City of Hopkins contains a high percentage of attached units. The City is committed to having a diversified housing supply. Consequently, it may be suggested that the Hennepin County Public Works site is a suitable location for single - family homes which would provide additional balance to the housing supply. The site itself, however, is inherently unsuited to the construction of single - family homes. Only 20% of the perimeter boundary of the site abuts a single- family neighborhood. The vast majority of the site's perimeter abuts either commercial industrial buildings or freeway tight -of -way. Access to the area as well as abutting land uses creates an environment that is not conducive to the construction of new single - family homes. The 1989 Comprehensive Plan called for multi- family residential on the southem portion of the property. The strongest argument against the construction of multi- family residential has both a policy and physical component. From a physical perspective, multi- family housing could be built in the identified location and could be buffered from the surrounding negative influences. The focus of such a development, however, would be internalized creating another multi- family enclave that would not bolster a sense of overall community. Another physical disadvantage is that this site will play a role in the public's perception of the City of Hopkins due to its prominent location adjacent to TH 169. If housing of any form is constructed on the site, noise barriers similar to those that now exist on the east side of TH 169 would likely be constructed. Instead of potentially creating a positive image of the community as viewed from TH 169, the additional noise wall would only create another section of urban freeway canyon. From a policy perspective, Hopkins currently has a high percentage of multi- family housing opportunities and therefore, a redevelopment parcel of this magnitude can be used for a more appropriate purpose. Retail Uses: The Hennepin County Public Works site is large enough to support retail activity. The principal drawback of using the site for retail purposes is access and visibility. Although the 1989 Comprehensive Plan touted the site's location, a closer look reveals that the Comprehensive Plan may have been somewhat overly optimistic. Both access and visibility pose concerns at the present time as well as into the near future. These concerns generally focus on the fact that the site is detached from direct access to a major roadway and visibility is hindered by existing development and the TH 169 bridge that crosses County Road 3. These issues are further referenced in the site analysis portion of this memorandum. Hennepin County Public Works Site Analysis Memorandum January 10, 1995 Page 3 Office. Office/Warehouse and Industrial: For discussion purposes, these three uses have been combined because in most redevelopment that occurs today, they tend to become integrated. Appropriate industrial uses of this site would include be smaller scale, clean operations. Such uses are commonly integrated into one overall campus business park that also may feature pure office uses as well as office/warehouse and office/showroom elements. As a category of land use, this is the preferred alternative for the Public Works site due to access, visibility and adjacent land uses The size of the Public Works site creates the opportunity to establish a business park that is attractive from the exterior as well as one having interior amenities. Designed as a campus type of environment, the development could be built in manner that creates a positive impression when viewed from TI-1 169. As such, it could become a signature of the community, similar to but not certainly of the same scale as the 8400 Tower area in the City of Bloomington or the Carlson Tower in the City of Minnetonka. • Further evidence of the site's potential for development as a business park was documented during the data collection phase of the County Road 3 Corridor Study. As a part of that planning effort, representatives from two of the Twin Cities major development companies reviewed sites along the corridor and provided their perspective on appropriate future use. At that time, both commented that if the Hennepin County Public Works site was not used by Supervalu, it had a strong potential as a business park site. `�v >� C„ jS Mixed Uses: There are a variety of mixed use scenarios that could be implemented on the site. The inherent disadvantage of any mixed use combination relates to the identified disadvantages of the individual specific uses noted. For example, adding a residential component still creates both the physical and policy concerns. A retail component still creates access and visibility concerns. Site Analysis In examining the physical characteristics of the Hennepin County Public Works site, issues can be summarized in a number of categories including access, adjacent land uses, visibility, existing edge treatments, buffer areas, existing roadways, existing regulations, and possible future development of an LRT station immediately north of the property. The following is an overview of each of these factors. Additionally, they are depicted on the site analysis graphic: Access: At the present time, primary access to the site occurs from the north on 3rd Street South and another access connects to 5th Street South. These access points adequately meet Hennepin County's current needs since they channel the County's truck traffic to one primary location while affording automobile access for employees and visitors at alternative entrances. Trucks are prohibited from using Second Avenue South which is posted with signage. Visibility: Visibility into the Public Works site currently ranges from excellent to non - existent depending on the location of the viewer, Observations on the visibility of the site include: Hennepin County Public Works Site Analysis Memorandum January 10, 1995 Page 4 ▪ Northbound along TH 169, visibility into the site is excellent. The roadway grade is at an elevation that is very close to the current County office building providing expansive views of the property. Because of the visibility of the site from this location, drivers have ample opportunity to exit at County Road 3 to access the property. • Along 5th Street South and 3rd Street South, visibility into the site is excellent due to flat grades in the area and lower speed limits on local streets which allow drivers ample time to see the property and find suitable entrance locations. ▪ Along County Road 3 regardless of the direction of travel, a relatively narrow window of opportunity exists to see into the site. This window extends approximately 500 feet both east and west along County Road 3 from the center of the CR 3 and 5th Avenue North intersection. On the west side of the intersection, the view into the area is obscured by the Knox Lumber building. On the east, the site can be viewed over the top of the open storage area for the truss manufacturer but the buildings located immediately east of the storage area completely obstruct the view. ■ Approaching the site on 2nd Avenue South from the south, it is not visible until reaching a point approximately 300 feet south of the connection to 5th Street South. At this point, drivers reach the crest of the hill that rises consistently from its starting point at the intersection of 7th Street South and 2nd Avenue South. ▪ Approaching the site from the north along TH 169, visibility into the site begins as non- existent and gradually improves as a driver continues to the south. The view into the property from the north (heading south) begins approximately at the point where TH 169 crosses County Road 3. At this location, a driver whose destination is the Public Works site has only one opportunity to exit at 7th Street South/ TH 169. Unless a driver is familiar with the location, there is no view into the site from the north that would allow exiting at County Road 3 and accessing the site from the north via 5th Avenue North. Adiacent Land Uses: The nature of the land uses surrounding the Hennepin County Public Works site is predominately commercial and industrial. Such uses include the warehouse building and the Supervalu entrance west of the site, Knox Lumber and GRC to the north, and an office building immediately southeast of the site. Additionally, the entire eastern frontage abuts TH 169 which is an intermediate arterial freeway which had a 1992 ADT of 69,000 vehicles. Approximately three quarters of the southern boundary of the site abuts a residential neighborhood. Portions of the neighborhood are separated from 5th Street South by Buffer Park (appropriately named). Five residential lots have direct side lot line exposure to 5th Street South and the Public Works site. Hennepin County Public Works Site Analysis Memorandum January 10, 1995 Page 5 Existing Edge Treatments: The Hennepin County Public Works building is relatively open around the edges, with portions of the boundaries controlled by chain link fencing around the storage yard areas and along the TH 169 right -of -way. Some screening occurs from opaque slats inserted into the fencing at the corner of 3rd Street South and 5th Street South. Beyond the limits of the fence slats, large deciduous shrubs provide additional screening during leaf -on conditions. Buffer Areas: The only significant buffer area that provides some mitigation from the views into the Public Works site as well as from noise generated on the site is Buffer Park which separates 5th Street South from homes located on Valley Drive. Redevelopment of the Public Works site will need to consider additional buffering for the entire neighborhood area located to the south. Existing Roadways: The observations noted in this memorandum focus principally on land use and physical site characteristics. They do not include an analysis by a qualified traffic engineer. Despite this fact, general comments on the roadway network are offered. The roadway system currently serving the Public Works site appears to have adequate width to handle two full lanes of tuck and automobile movement. The roads on the north and west sides of the site are and will continue to be heavily used by Supervalu trucks in moving products between their various locations in the area. Vehicles entering the area from 5th Avenue North will continue to be periodically detained at the railroad crossing. Light Rail Transit (LRT): The Hennepin County Regional Railroad Authority has retained existing railroad right -of -way north of the site for future construction of an LRT line and station. (See Attachment A) The timing of construction of LRT in this area is unknown but can be reasonably expected to be at least 10 years away. Therefore, it becomes a future consideration in establishing redevelopment plans for the Public Works site. Conclusions and Comments Although this review of the Hennepin County Public Works site is preliminary in nature not having included traffic, market, and financial analyses, it supports a conclusion that the Public Works site should be developed as a business park. Such a park would likely include office buildings, office warehouse/showroom facilities and clean, light industrial uses such as assembly operations and similar uses without outside storage requirements. The following comments pertaining to this potential use are offered for consideration: • Development Pattern: Development of a business park on the Public Works site needs to emphasize "park ". The development pattern should include entrance treatments, landscaping and other features that would create an attractive environment both internally and when viewed from the surrounding roadway network. The City of Hopkins should work with the developer to ensure that the entire 40 acre parcel is designed as one project area rather than as a collection of differing individual elements. Hennepin County Public Works Site Analysis Memorandum January 10, 1995 Page 6 ▪ Building Materials and Height: Since the Public Works site lies within a quadrant of one of materials Hopkins' most significant intersections, buildings need to be constructed Building s around the that will both minimize maintenance and will be aesthetically pleasing. periphery of the site should be single story to relate to the scale of the surrounding land uses and taller structures could be more centralized on the property. While the market is not likely to support an office tower at this location, a 3 to 5 story office building may be a realistic component of a business park project. If such a building is included in a business park redevelopment plan, it could be located northeast of the center of the site enhancing the visibility of the site when viewed prior to and on the bridge southbound on TH 169. ■ Existing Zoning Regulations: In order to guide the development of a business park on the Public Works site, it may be necessary to consider some modification of the existing Zoning Ordinance. A cursory review of the Business and Industrial classifications indicates that possibly either a new category would need to be created or a mechanism such as a conditional use permit should be required in order to control such a development. ■ Edge Treatment: The periphery of the business park area should be attractively landscaped and building orientations within the development should consider views from adjacent streets. For example, service corridors and loading dock areas should be screened from the adjacent ja �� street system and/or oriented in a manner that they do not face the surrounding development will need to provide a. buffer for the single - family neighborhood to the south. Such a buffer can be accommodated as a green space in a variety of ways including berrning, landscaping and expanded building and parking setbacks. Trail Connections: Consideration should be giv Jt providing pedestrian and/or bicycle • connections between Buffer Park and the Valley ie neighborhood to the Hennepin Parks regional trail that presently terminates at the Park and Ride lot at 8th Avenue. A trail connection could be accommodated around the periphery of the business park site or could be included as part of an internal circulation system passing through the site. ■ Access and Entry Points: Access to the site and entry points into the property are likely to be one of the more debated aspects of the redevelopment of the Public Works site. At the present time, the Hennepin County facility has a driveway access off of the south end of the property at the juncture of 5th Street South and 2nd Avenue South. Second Avenue South is posted as a truck prohibited route. A business park occupying 40 acres will require multiple access points. The existing access to the south serves the property well by providing a connection to the 7th Street South/rH 169 interchange. A developer may find that this connection is essential to the development of a business park. Assuming that an access is needed on the south end to make a direct ; onn7cction to the interchange, changes to the existing roadway system could be made to of the existing neighborhood. It may be possible to extend 2nd Avenue South to the noz Oia G Hennepin County Public Works Site Analysis Memorandum January 10, 1995 Page 7 through the Public Works site and connecting to 5th Avenue. Such a roadway would need to be done in a manner that minimizes the bisecting of the business park area. In conjunction with the construction of this roadway, 5th Street South from 5th Avenue South to 2nd Avenue South could be vacated and the street could be removed. The combination of these improvements could enhance accessibility to the Public Works site while further separating the existing residential neighborhood. If this improvement were to occur, it is presumed that the business park would desire to allow truck traffic to use 2nd Avenue South. This issue may still be controversial with residents in the area whose property backs up to 2nd Avenue South, even though they are currently separated by a significant berm and planting of conifers. A more detailed traffic analysis of this alternative would need to be completed as part of redevelopment site planning efforts. If access to the south is determined to be unworkable, the only alternative is to have an access point or multiple access points along either the north or west sides of the property. • Licht Rail Transit: The Hennepin County Regional Railroad Authority recently confirmed that construction of an LRT line and station as proposed immediately north of the site is at least 10 years away. Whether it is an LRT station or other possible use, the truss manufacturing business needs to be relocated. It currently is a visual blight on the entire area and establishes a negative image. Realizing that the political and financial realities of LRT are far from reality, the potential of an LRT station site as proposed should be reflected in redevelopment plans for the Public Works site. Plans for example, should accommodate pedestrian and vehicular circulation from the station site to the business park. LRT would present access opportunities for reverse commuter employees for business park uses. The content of this site analysis memorandum is preliminary and observation oriented. The information contained herein, does solidly support the development of a business park on the Hennepin County Public Works site. Furthermore, it meets a number of the primary goals identified in the 1989 Comprehensive Plan including: ■ Protect the residential neighborhoods. ▪ Improve deteriorating and/or obsolescent industrial or commercial areas. ▪ Bolster the image and character of the community. ■ Maintain fiscal health and an acceptable balance between service quality and property tax rates. If you have questions pertaining to any of the information in this memorandum, please feel free to contact me. CITY OF HOPKINS Hennepin County, Minnesota ORDINANCE NO. 97 -795 AN ORDINANCE ADDING A BUSINESS PARK DESIGNATION TO THE ZONING ORDINANCE That the Hopkins Zoning Ordinance No. 515 -570 be, and the same is hereby amended by, amending and adding the following sections: Section 541 -- Zoning: business park 541.01 Business Park. The purpose of the Business Park District is intended to allow for business and industrial operations. The performance standards for this district are intended to establish and maintain high quality site planning, architecture, signage and landscape design to create an attractive and unified development character. 541.02 Uses. Within the Business Park District, no building or land shall be used except for one or more of the following uses: a. Free standing office buildings for corporate, administrative, executive, professional, research, sales representatives' offices, or similar organizations. b. Manufacturing, production, processing, storage, servicing, repair or testing of materials, goods or products that is wholly contained within a building and which between office, tech, and light manufacturing occupies at least 60 percent of the gross floor area of the building and a warehouse use that occupies a maximum of 40 percent. c. Retail sale of products manufactured, warehoused or distributed on the premises where the retail floor area does not exceed 15 percent of the gross floor area or 3,000 square feet, whichever is less, of the building in which the sales area is located. If the business park is phased over a period of time, a plan for the overall site development shall be submitted for approval. 541.03 District standards. No building or land in the Business Park District shall be used except in conformance with the following: a) minimum lot size 1 acre (43,560 square feet) b) minimum lot width 100 feet c) building h:ight• maximum 45 feet building 'rights up to 80 feet maybe permitted with an increase of a two foot setback for each additional foot of building height abutting a residential district. d) minimum building setbacks 1) front yard 20 feet 50 feet abutting residential district 2) side yard 20 feet 50 feet abutting residential district 3) rear yard 20 feet 50 feet abutting residential district e) floor area ratio 1.00 0 minimum parking setbacks 1) front yard: 20 feet 50 feet abutting residential district 2) side yard: 10 feet 50 feet abutting residential district 3) rear yard: 10 feet 50 feet abutting residential district (If the development involves a parking structure, the building setbacks apply to the parking structure) g) lot coverage: Maximum lot coverage shall be 85 percent and shall be calculated to include buildings footprints; parking areas; driveways; loading, storage and trash areas and other areas covered by any impervious surface. 541.04. Parking and loading areas. Subdivision 1. Off - street parking and loading areas must conform to the requirements of Section 550 with the following additicnal requirements: Subd 2. Curbs. All parking and loading areas, aisles and driveways shall be bordered with raised concrete curbs approved by the City. Subd. 3. Loading docks. All loading docks shall be located on the interior of the site or shall be screened from the public right -of -way Subd. 4. Buffer. All off - street parking shall be screened by a planting buffer screen. This. buffer shall include a berm at a minimum height of three and one -half feet and landscaping adequate to screen the parking lot Subd. 5. Traffic. The project s::all be d °signed to minimize traffic impacts to any adjacent residential neighborhood. A traffic study may be required to demonstrate compliance with the requirement. 541. 05. Trash. The trash areas on the site shall be consolidated. Trash, recyclable materials, and associated handling equipment shall be stored within the principal structure or in an accessory structure, attached or separate from the primary structure, constructed of building material compatible with the principal structure. 541.06. Open Storage. Open storage areas shall be prohibited in the business park zoning district. , outdoor parking or storage of commercial tractors and trailers is also prohibitd. 541.07. Landscaping requirements. Subdivision 1. All open areas of a lot that are not used or improved for required parking areas and drives shall be landscaped with a combination of overstory trees, understory trees, shrubs, flowers and ground cover materials. The plan for landscaping shall include ground cover, bushes, shrubbery, trees, sculpture, fountains, decorative walks or other similar site design features or materials. The following table is a minimum value for bushes, shrubbery and trees: Project Value Minimum (Including building construction, Landscape Value improvements) Below $1,000,000 2% $1,000,000 - $2,000,000 - $20,000 + 1% of project value in excess of 51,000,000 $2,000,000 -- $3,000,000 $30,000 + .75% of project value in excess of $2,000,000 $3,000,000 -- $4,000,000 $37,500 + .25% of project value in excess of $3,000,000 over $4,000,000 1% Documentation showing an estimated dollar amount of landscaping shall be provided to the City prior to any approval. SI »bd. 2. Existing materials. In instances where healthy plant materials of acceptable species as determined by the City Forester exist on a site prior to its development, th= application of the standards in this subdivision may be adjusted by the City to allow credit for such material, provided that such adjustment is consistent with the intent of this ordinance. The City may permit the seeding of areas reserved for future expansion of the development if consistent with the intent of this ordinance. Subd. 3. Preservation. A reasonable attempt shall be made to preserve as many existing trees as is practicable and to incorporate them into the site plan. A plan shall be submitted to the City showing the step to be undertaken to preserve the existing trees. Subd. 4. Size. All new overstory trees shall be balled and burlapped or moved from the growing site by tree spade. Deciduous trees shall have a minimum caliper of 2 1/2 inches. Coniferous trees shall be a minimum of six feet in height. Ornamental trees shall have a minimum caliper of 1 1/2 inches. Subd. 5. Ground cover. All site areas not covered by buildings, sidewalks, parking lots, driveways, patios or similar hard surface materials shall be covered with sod or an equivalent ground cover approved by the City. This requirement shall not apply to site areas retained in a natural state. Subd. 6. Irrigation. In order to provide for adequate maintenance of landscaped areas, an underground sprinkler system shall be provided as part of each new development. A sprinkler system shall be provided for all landscaped areas except areas to be preserved in a natural state. The sprinkler system is required to have a sensor for an automatic shut -off to prevent the system from operating when it is raining. Subd. 7. Parking areas. Parking areas shall be landscaped and planted throughout the lot to the extent of at least 5% (excluding landscaping abutting the parking area and any public right -of -way) of the actual surfaced area. Subd 8. Internal plans. The landscape plan shall also show the pathway system both interior and exterior, width and materials, screening fences with details, lighting system, recreation features, if any. 540.08. Architectural Standards. It is not the intent of the City to restrict design freedom unduly when reviewing project architecture in connection with a site and building plan. However, it is in the best interest of the City to promote high standards of architecture design and compatibility with surrounding structures and neighborhoods. a) architectural plans shall be prepared by an architect or other qualified person acceptable to the planning department and shall show the following: 1) elevations of all sides of the building; 2) type and color of exterior building materials; 3) typical floor plan; 4) dimensions of all structures; and 5) the location of trash containers and of heating, ventilation and air conditioning equipment. b) all buildings shall be finished on all sides with permanent finished materials of consistent quality. Major exterior surfaces of all primary structures shall be face brick, architectural concrete, glass, stucco, synthetic stucco, decorative block, or stone. Precast panels and concrete block may be acceptable if incorporated in a building design that is compatible with other development throughout the district. The determination if precast panels and concrete block are acceptable is in the sole discretion of the Zoning and Planning Commission and City Council. A wall surface may use wood, vinyl, or metal, as accent material, provided they are appropriately integrated into the overall building design. c) all rooftop or ground mounted mechanical equipment, satellite dish antennas, and exterior trash storage areas shall be screened with materials compatible with the principal structure. d) underground utilities shall be provided for all new and substantially renovated structures. e) accessory structures, either attached or detached from the primary structure, shall be constructed of identical materials, style, quality, and appearance as the principal structure. f) screen walls, and exposed areas of retaining walls shall be of a similar type, quality, and appearance as the principal structure. 540.09. Other information. The staff may require other information to complete the review of a business park. Other requirements may include a traffic study, lighting analysis, and a shadow analysis. All studies and analysis will be paid for by the applicant. 540.10. Lighting. A lighting/illumination plan shall be submitted for review. The lighting/illumination plan shall detail the type and quantity of the lighting on the site Plans for site lighting shall be coordinated with the landscape plan for developments within the subject area. Such lighting plans shall be designed to avoid any off -site glare from site lighting and any unnecessary light trespass. Maximum fixture height shall be compatible with the scale for the development and adjacent landscape features. Section 570 -Signs 570.54. Permitted signs: business park district. Subd. I. Business Signs. Each business other than those in multi - tenant buildings may have one wall business sign limited to flat wall sign, not extending more than 18 inches from the face of the building, except that such signage may extend from the face of the roof over a covered walk. Such wall business signage shall not exceed 15% of the area of the wall to which the signage is attached, to a maximum of 96 square feet. Subd. 2. Monument signs. Ur-2S other than those in multi- tenant buildings may have a monument sign that shall not exceed 80 square feet per surface area, and 15 feet in height, and is setback a minimum 20 feet from the property lines. Subd. 3. Multi -tenant business signs. Each tenant in a multi -tenant building may have a wall business sign limited to a flat wall sign, not extending more than 18 inches from the face of the building, provided that they are designed and arranged in accordance with a comprehensive sign plan for the entire multi -tenant building which has been prepared by, and submitted to the City by the owner and which has been approved by the City; further, the aggregate area of such signs shall not exceed 5% of the area of the wall to which they are attached. Subd. 4. Multi -tenant monument signs.. One monument sign shall be permitted for each multi -tenant building provided the surface area of the sign does not exceed 100 square feet per side, 15 feet in height, and is setback in no case less than 20 feet from the property lines. The area may be increased to a maximum of 150 square feet per side for developments of over 20 acres. Subd. 5. Canopies and Awnings. The design of canopies shall be in keeping with the overall building design in terms of location, size, and color. No canopies with visible wall hangers shall be permitted. Signage on canopies may be substituted for allowed building signage and shall be limited to 25 percent of the canopy area. Internally illuminated canopies must be compatible with the overall color scheme of the building. Subd. 5. Review. All signs for tenants in multi- tenant buildings shall be reviewed by the building ownership or management who shall provide a written endorsement at the time application is made for the sign permit; the endorsement shall indicate that the proposed signage has been found to be consistent with the approved comprehensive sign plan. Subd. 6. Flexibility. To provide reasonable flexibility in the sign regulations, set forth in this subdivision, the zoning administrator may, subject to the approval of the city council, approve an application for a sign that exceeds the number, size or height of signs permitted by these regulations where such exception would not be inconsistent with the intent of these regulations. New Definitions -- Section 515 515.07 Subd. 11 Architectural concrete: A building construction material consisting_of concrete that has a surface design_pattern, and texture that enhances the architectural design of the building and is available in a variety of colors. 515.07 Subd. 40. Decorative block: a building block of cast concrete and aggregate rock that has a split -rock, brick -like, burnished or ribbed texture on the side to be exposed, and is available in a variety of colors. 515.07 Subd. 56. Face brick a masonry building block or clay baked in a kiln until hard. 515.07 Subd. 106. Office: A use wherein services are performed involving predominantly administrative, professional or clerical operations. 515.07 Subd. 116. Plain concrete Klock: a building block of cast concrete that has no additional surface texturing. 515.07 Subd. 118. Precast panel: a building_ wall section of concrete poured into a form at the manufactures facility and shipped to the construction site for installation. 515.07 Subd. 144. Synthetic stucco: a nonbearing exterior wall cladding system providing both insulating value and finished exterior surface. 515.07 Subd. 150. Warehouse: (sce motor freight) Subd. 155. Warehousing and distribution: A use engaged in storage, wholesale, and distribution of manufactured products, supplies, and eauipment, but excluding_ bulk storage of materials that are inflammable or explosive or that create hazardous or commonly recognized offensive conditions. 570.01 Subd. 11. Sign - free standing: (see sign- pylon) 570.01 Subd. 13. Sign - monument: a sign whose base and structure are positioned primarily on the ground and are tvpically solid from grade to the top of the structure. 570.01 Subd. 16. Sign - pylon: A sign supported by one or more upright poles columns or braces placed in or on the ground and not attached to any building or structure. Other uses listed in 515.07 and 570.01 are to be renumbered accordingly. First Reading: January 7, 1997 Second Reading: January 21, 1997 Date of Publication: January 29, 1997 Date Ordinance Takes Effect: February 18, 1997 ATTEST: Terry Obermaier, City Clerk APPROVED AS TO FORM AND LEGALITY: City Attorney Sknature Date Charles D. Redepenning, Mayor -Ln SC•••a SCM -J 3 I-2 1 SUBJECT PROPERTY LOCATION MAP iii / / / /// /// // / Northern Region aUPERA LU 7Q Box .J rreaao,s ,.. 5' 2 932 4300 January 10, 1997 Mr. Jim Kerrigan, Director Planning & Economic Development City of Hopkins 1010 First Street South Hopkins, MN 55343 Re: Hennepin County Property, Hopkins, Minnesota Dear Mr. Kerrigan: SUPERVALU appreciates this opportunity to express its interest in the above referenced property. First, I would like to provide a brief description of our operations in the City of Hopkins to help put our interest in perspective There are two primary functions within our Hopkins facilities. First are the offices of SUPERVALU's Northern Marketing region and second are the warehouse and distribution operations. The Northern Marketing region is one of seven regions within SUPERVALU's operations. The Northern region is responsible for providing services and support to our affiliated grocery retailers in the upper midwest. We provide products to our retailers from four distribution centers located in Fargo, ND, Bismarck, ND, Des Moines, IA and of course, the Hopkins distribution center. The regional office consists of approximately 300 employees. Functions within the regional office include product procurement. marketing, business development, advertising, accounting, real estate, engineering design. information services and human resources. The distribution operation in Hopkins is the largest within SUPERVALU, supporting annual sales of approximately $1.3 billion. We have approximately 700 employees involved in the warehousing and transportation functions. The volume of product handled has steadily grown over the years, and we project that growth to continue. The current distribution operations involve three different facilities in Hopkins. The main site at 101 Jefferson Avenue includes the dry grocery and frozen food product line, as well as, the fleet maintenance facility. Our perishable facility on 5th Street is where we distribute produce, meat, deli, bakery and dairy products. The facility north of Excelsior Boulevard (previous Red Owl distribution center) is used for overflow storage of grocery products, as well as, a shipping dock for large volume products. Currently, offices for the regional staff are located in all three facilities. Mr. Jim Kerrigan January 10, 1997 Page 2 Our primary interest in the Hennepin County site is to construct a facility to consolidate our dry grocery operations. The current buildings are too small to handle the projected volume, there are not enough dock doors to handle the inbound and outbound loads and the truck traffic is becoming very congested in and around the sites. Our plans would be to build a facility of approximately 500,000 square feet. Truck staging and parking areas would also be provided on this site. It would be our intent to acquire the entire site. The location, in proximity to our frozen food and perishable building, is very important to us. Many of our outbound loads consist of a combination of dry and perishable goods, thus we shuttle trucks between facilities to complete the loads. The farther we have to go from our existing facilities to meet our expansion needs, the less efficient our operations become. We are comfortable with the property's availability date assuming that we are under contract well in advance of that time. We estimate that the design, construction and preparation of the facility will require approximately eighteen months which suggests that the design and planning must begin before Fall, 1998. In summary, the continued success of our Hopkins distribution center requires that we consolidate our dry grocery operations into one, larger facility. Furthermore, we need to be operational in the new space within three years. The Hennepin County property located within the City of Hopkins is strategically placed in relationship to our existing facilities, and its size will accommodate our expansion needs. SUPERVALU is available to meet with the City and the County to arrange a transaction that will best meet the objectives of all parties. Further. we are prepared to complete that transaction as soon as possible. Please continue to work with Lloyd Johnson and Joe DeWit on this matter. However, I am available at any time to discuss SUPERVALU's Northern Region operations and future facility plans Again, thank you for this opportunity. Since ly, John Vegter Vice President, Logistics Northern region John Vegter Vice President Logistics Northern Region WPERLIAL PO Box 1451 Minneapolis, MN 55440 612 932 4372 March 3, 1997 James D Kerrigan City of Hopkins Planning & Economic Development Director 1010 First Street South Hopkins, MN 55343 Re: SUPERVALU Long Range Facility Planning Schedule Dear Jim, The following is a proposed schedule of events if SUPERVALU were successful in purchasing the Hennepin County Public Works property. These dates are tentative and subject to change, however, they are our best projections todate of how the project might come together. If you have any questions please call me at 932 -4372. Obtain control of site Begin site and facility design Bid construction work Begin construction Place North Annex Property on market for sale Complete construction Start-up DC operations in new facility Phase out North Annex operations North Annex vacated Sincerely, q Vegter ger t cc: Deb Carlson Lloyd Johnson Mike Daly Joe DeWit August, 1997 January, 1998 July, 1998 October, 1998 January, 1999 June, 1999 July, 1999 August 4 October, 1999 November, 1999 03/05/97 ❑. -'I? FAX 612 914 5850 PLMK situ 'tsIlllllllilllllllillllllllllllllllllllllllllllllllllllllllllilfllll 'OS '3AV 1H1 9 z 691 'AMH _.1i16161611116110(111111616661111110 1 1 1 L ZQZ- vmnne mm 1 1111111111111111111111111111111111111111111 If Ln cr In X I 1./.1 Z < /— CC CD • \ \ .1- 1,:t .' • • ‘• . — 0 \ • \ I I-- I = i m 1— tai w CC 4- H„Li I 1111 1 1 . L 'AMH OS 3Av 'ul a. 0 To: Jim Kerrigan From: Nancy Anderson Date: Tuesday, February 11, 1997 Subject: SuperValu North Annex property The following are some examples of the square footage for buildings that could be constructed on the SuperValu North Annex property: Size of site: 28 acres x 43,560 square feet = 1,219,680 square feet for the site Development with proposed business park ordinance Maximum building potential: Floor Area Ratio is 1.00 could build 1,219,680 square feet of building 40% maximum warehouse 487,872 square feet 60% minimum office, tech, light manufacturing 731,808 square feet Probable building constructed with proposed business park ordinance 30% building coverage for a total 365,904 square feet 40% maximum warehouse 146,361 square feet 60% minimum office, tech, light manufacturing 219, 543 square feet 40% building coverage for a total of 487,872 square feet 40% maximum warehouse 195,149 square feet 60% minimum office, tech, light manufacturing 292,723 square feet Industrial zoning Floor Area Ratio .60 Maximum building potential 726,000 square feet -- could be 100% warehouse tw► COUNTY SECOND - "T (14) 2 3 INDUSTRIAL ZONING 726,000 SQUARE FEET 27 26 (84 IM it on p 24 (82) 23 (8I) I(16) 6_ 11 8 1719 bi 10 I (65) 7' o 'tI (73)13 74) 434 k 1 1 l* s /5 (EXCELSIOR' WAVE.) 24 (82) • TI �1 6 1 90) N ( 10)12 171) 13 4 28 (83 t½,' (75)Id d i (74) , 30 (86 23(8( 22(8 h 21 (79) 4 1: (a) MEM COUNTY 'kV SECOIVO PROPOSED BUSINESS PARK ZONING 40% BUILDING COVERAGE 195,149 SQUARE FEET WAREHOUSE 292,723 SQUARE FEET OFFICE, TECH OR LIGHT MANUFACTURING 12 178113 (65) 7 (66) 8 (67) 9 ( 68) 10 ter f (56) f (78)IA a) h za(78) i� 19 c 5d la I 1 1 (EXCELSIOR' A vE .l • x2 31 (87), 30 (86 39 ( c+ 28 (88) 27 (f0) i2 26 (84 (7I) 13 M 25033 (7 1. 4 14, _ 24 (82J (73)14 ( 23 (81) (74) e 22 (8 ti 2 ! (79) (7831$ h 20 (78) Mir ••■• r i COUNTY ( t� S ! - - - - � /5 SECOND PROPOSED BUSINESS PARK ZONING 30% BUILDING COVERAGE 146,361 SQUARE FEET WAREHOUSE 219,543 SQUARE FEET OFFICE, TECH OR LIGHT MANUFACTURING I151 _ I_ 14) 2 3 4 5 6) 6 7 rot a a7) 9 `°I 10 — I (65) 7 21 (66) 8 p (67) 9 m NI (77) 19 ley 50I W BENSHOOF & ASSOCIATES, INC. TRANSPORTATION ENGINEERS AND PLANNERS 7301 OHMS LANE, SUITE 500 / EDINA, MN 55439 / (612) 832 -9858 / FAX (612) 832 -9564 March 3, 1997 REFER TO FILE. 97- 11 MEMORANDUM To: Tim Kerrigan, City of Hopkins From: James A. Benshooffe Re: Preliminary Comments Regarding Access Opportunities and Constraints for Super Valu Annex Site PURPOSE You recently indicated to us that Super Valu may be interested in developing a new facility on the Hennepin County site and, in the process, vacating their existing "annex" site on the north side of Excelsior Boulevard and east of Highway 169. To assist City staff in addressing this possible scenario, you asked us to review access opportunities and constraints for the Super Valu annex site. The idea is that possible access arrangements for the site would have a significant influence on the type(s) of uses that could be developed on that property. In the context of the preceding points, the purpose of this memorandum is to offer preliminary comments on possible access arrangements for the Super Value annex site. As further development planning occurs for this property, additional traffic studies could be performed to establish a specific access solution that effectively serves the development and that meets the needs of the City, County, and Mn/DOT. CURRENT EXCELSIOR BOULEVARD IMPROVEMENT PLAN The Excelsior Boulevard improvement plan approved by the City in 1994 includes the following changes to Excelsior Boulevard in the vicinity of the annex site: a) Construction of a new roadway between Excelsior Boulevard and Milwaukee Street at the location of the east ramp intersection for Highway 169. This roadway would change the intersection of Excelsior Boulevard and Highway 169 from a T intersection to a four -way intersection and would involve a new at -grade crossing of the railroad tracks. The prime purposes of this new roadway are: 1) to provide an adequate connection between the annex site and the main Super Valu facilities on the south side of Excelsior Boulevard and 2) to improve the overall access for the Super Valu facilities on the south side of Excelsior Boulevard. Mr. Jim Kerrigan -2- March 3, 1997 b) Closure of St. Louis Street between Excelsior Boulevard and Jackson Avenue. The purpose of this closure is to resolve the difficulties experienced at the current flat angle intersection between Excelsior Boulevard and St. Louis Street. c) Closure of Milwaukee Street east of the new connection between Milwaukee Street and Excelsior Boulevard. With this new connection to Excelsior Boulevard, the segment of Milwaukee Street to the east is no longer needed. Further, closure of this segment would be beneficial in eliminating the existing difficulties at the current flat angle intersection of Milwaukee Street and Excelsior Boulevard. d) Extension of Jackson Avenue south of the railroad tracks to Excelsior Boulevard. The purpose of this extension is to provide an effective full access point on Excelsior Boulevard to replace the awlcward % access arrangement that presently exists at St. Louis Street and Excelsior Boulevard. POTENTIAL REVISIONS TO iRAFFIC NEEDS AND CRITERIA If Super Valu were to develop a new facility on the Hennepin County site and vacate the annex site, the traffic needs and criteria that formed the basis for the previously described Excelsior Boulevard improvement plan would be significantly changed. Two major changes are as follows: a) The need for a connection between Milwaukee Street and Excelsior Boulevard at the east ramp intersection with Highway 169 would be substantially reduced. Super Valu's operations would be concentrated south of Excelsior Boulevard, and their vehicles no longer would need to cross Excelsior Boulevard between sites north and south of this roadway. b) Needs may be experienced for improved access between Excelsior Boulevard and the annex site. Super Valu's existing use of the property for warehousing and distribution purposes does not require access arrangements that are as direct and convenient as the access required by some other candidate uses for the property. POTENTIAL ACCESS REVISIONS TO EXCELSIOR BOULEVARD CORRIDOR PLAN TO SERVE SUPER VALU ANNEX SITE We have developed preliminary comments on possible access arrangements based on the points previously described and on application of pertinent transportation engineering principles. Our preliminary recommendations are shown on Figure 1 and are summarized below: a) Eliminate the planned roadway connection between Milwaukee Street and Excelsior Boulevard at the east ramp intersection of Highway 169. Strong needs for this connection no longer would exist if Super Valu's operations are concentrated south of Excelsior Boulevard. Elimination of this connection would be beneficial in terms of preserving higher levels of traffic service for existing movements at the intersection of Excelsior Boulevard and the east ramps for Highway 169 and in terms of avoiding the additional vehicle /train conflicts that would be created with a new at -grade crossing. Mr. Jim Kerrigan -3- March 3, 1997 b) Extend Milwaukee Street east to a new intersection with Jackson Avenue just south of Excelsior Boulevard. This extension would be needed to provide adequate accessibility between Excelsior Boulevard and properties south of this roadway. We recognize that residents along Jackson Avenue south of Excelsior Boulevard may be sensitive to truck traffic using Milwaukee Street to access Excelsior Boulevard at the existing Jackson Avenue location. We believe that several design and traffic control alternatives are available to accommodate the truck traffic on Milwaukee Street, without causing adverse impacts on the neighborhood. c) Construct, if needed, a 3 /4 access intersection on Excelsior Boulevard just west of the existing St. Louis Street intersection Similar to the existing St. Louis Street intersection, this new access would accommodate all movements, except Ieft turns from the north to the east. If the annex site were developed as a single overall use, this access could be a private driveway. On the other hand, if the site were subdivided into multiple parcels for development, it would be preferable for this' access to be a public street that either would extend north to 2n Street or east to Jackson Avenue. It is suggested that this access accommodate 3 of the 4 possible movements, and not full access, in order to preserve adequate spacing of traffic signals on Excelsior Boulevard and in order to minimize disruption to traffic flow on Excelsior Boulevard. With the above access arrangements, we believe that the annex site would have excellent accessibility to complement its high visibility from Highway 169 and Excelsior Boulevard. In addition to the previously mentioned % access point on Excelsior Boulevard, the site would have access on 2" Street and Jackson Avenue, with Jackson Avenue being extended south to include a new signalized intersection on Excelsior Boulevard. We welcome any questions or comments that you or other participants may have regarding the points expressed in this memorandum. Also, we are available to provide any follow -up assistance that may be needed. 3/4 ACCESS IS EITHER A PRIVATE DRIVEWAY. IF ONE DEVELOPMENT OCCUPIES THE ENTIRE SITE. OR IS A PUBLIC STREET EXTENDED TO 2ND ST. OR JACKSON AVE. REMOVE STREET NUMEROUS LAYOUT AND TRAFFIC CONTROL OPTIONS FOR THIS INTERSECTION TO SERVE PROPERTIES TO WEST AND SOUTH, WITHOUT CAUSING ADVERSE IMPACTS ON THE NEIGHBORHOOD wT TO 5CAJJC TRAFFIC der SIGNAL CONTROL CITY OF HOPKINS W p BENSHOOF & ASSOCIATES, INC. 1RMSPCRTAllp1 ENQNEERS AND PLANNERS TRAFFIC CONSIDERATION REGARDING POTENTIAL DEVELOPMENT ON SUPER VALU ANNEX SITE FIGURE POTENTIAL TRAFFIC CONCEPT