Rezone-R-2 to I-1 Indust.September 18, 1984
•
Case No: 84 -28
Applicant: Paul Steiner
Location: 4.5 acres located in the Southwest corner of the South one -half of
the Southeast quarter of the Southeast quarter of Section 25, Town-
ship 117, Range 22.
Subject: Rezone from R -2 Residential to I -1 Industrial
STAFF FINDINGS AND COMMENTS: Kerrigan
1. The applicant is requesting the rezoning of approximately 4.5 acres located in
the southeast corner of the City from R -2 Low Density Multiple Family Resi-
dential District to I -1 Industrial.
2. The subject parcel is part of a larger, approximately 17.5 acre parcel the ap-
plicant is in the process of acquiring. This entire parcel is located in the
Nine Mile Creek Flood Plain except for a small portion of the subject 4.5
acres located in the southwest corner of the property.
3. If the applicant receives approval of the rezoning request, he intends on
building a warehouse structure on the 4.5 acres for which he is requesting
the rezoning. Such an undertaking will require both approval of a Conditional
Use Permit by the Planning and Zoning Commission and approval of the Nine Mile
Creek Watershed District Board of Commissioners. The remaining portion of 13
acres of the overall acquisition parcel would be donated to the City for park
purposes.
4. The subject parcel is bounded by County Highway 18 to the east and to the south
warehouse /industrial development which is part of the Opus development in Minne-
tonka. The property to the west is zoned R -2 Residential but for the most
part has very limited development potential as a large percentage is located
with the Nine Mile Creek Flood Plain. The property to the north is also
zoned R -2 and is presently under the ownership of Minneapolis Floral. This
parcel has the potential for construction of a substantial amount of housing.
However, it would have to be confined to a small portion of the overall parcel
which is high ground and out of the flood plain elevation.
5. It might be logical for the Commission to consider a rezoning of the entire
parcel being acquired by the applicant rather than only the portion to be re-
tained by the applicant for construction. As the majority of the parcel is
unbuildable,and will be donated for public purpose it is, for the most part,
not that important whether a portion of the overall parcel be retained as
residential or also be rezoned to I -1. Subsequent to any approval by the
Planning and Zoning Commission, the applicant would have to provide the City
a legal description of the subject parcel to be rezoned. It would be much
easier to describe and detail on a map the entire parcel being acquired in-
Ig stead of only a portion. Also, such action would provide less possible chance
of there being an argument of spot zoning.
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i Date: June 29, 1984
TO: Mayor & Council
FROM: William P. Craig, City Manager
SUBJECT: Paul Steiner's Proposed Development Plan
At his appearance July 3rd, Paul Steiner will be seeking to learn
your feelings toward a potential tax increment development in
south Hopkins, including the former city landfill. If you wish
to pursue the proposal, staff time will be assigned to draft the
necessary documents and (provided analysis shows the finances to
be feasible) submit them to you for approval. If you do not wish
to pursue it, development on a lesser scale might be expected on
the parcels.
The proposal itself is reasonably complex. The HRA would acquire
from James Hurley a portion of the 20 acre tract he owns at the
southeast corner of the city, for $65,000. Hurley would donate
the balance to the city (for tax purposes). The HRA would spend
a large sum on soil correction, fill, and water and sewer
connection (to Minnetonka), bringing the total expense to an
estimated $587,000. The black dirt /peat from this site would be
• conveyed to the former landfill, where it would be shaped into a
berm capable of supporting a quantity of screening vegetation.
Steiner proposes to purchase the improved former Hurley property
from the HRA for $225,000, and build a 75,000 square foot
office - warehouse structure.
At the same time, the HRA would be purchasing the Feltl house
located on the south side of 7th Street near 12th Avenue, for an
estimated $250,000. With improvements, the total site cost would
reach $325,000. Steiner proposes to pay $110,000 for it, and
build a 40,000 sq. ft. masonry office warehouse there, after
using the sand /gravel it sits on to prepare sites on the
landfill. He would purchase the whole landfill for 30 - 350 per
square foot from the city, provided an access street is built.
Thereafter he would build a series of steel office - warehouses
along a southwest extension of 7th Street.
Obviously the plan is complex, and it requires rezoning of some
parcels. Thus Mr. Steiner wishes to speak on it personally, and
answer any questions you might have. The numbers given above as
values are from his analysis; actual numbers for property bought
and sold are derived from HRA appraisals. The bottom line
decision faced by City Councils regarding tax increment projects
is the determination that the proposed development would not
• occur without public subsidy. Hindsight has shown that both the
downtown district and the Southwest Industrial district met this
test. There are arguments to be made that the proposed project
meets this test also, and Mr. Steiner will make them.
Respectfully submitted,
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53n, MI
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