Loading...
HomeMy WebLinkAbout02/20/2013PLANNING COMMISSION AGENDA February 20, 2013 7:00 P.M. Apple Valley Municipal Center 7100 — 147th Street West This agenda is subject to change by deletion or addition to items until approved by the Planning Commission on the date of the meeting. 1. CALL TO ORDER 2. APPROVAL OF AGENDA 3. APPROVAL OF MINUTES OF JANUARY 16, 2013 4. CONSENT ITEMS --NONE-- 5. PUBLIC HEARINGS A. Cobblestone Lake South Shore 8 Addition — Consideration of an amendment to the 2030 Comprehensive Plan Land Use Map, rezoning, and subdivision to allow for the development of 29 single-family lots and two (2) outlots on approximately 8 acres. (PC13-06-PZS) LOCATION: Northwest corner of Cobblestone Lake Parkway and Elm Creek Lane PETITIONER: South Shore Development Inc. B. Home Depot Temporary Outdoor Garden Center C.U.P. — Consideration of amendments to their existing temporary outdoor garden sales conditional use permit (C.U.P.) to allow for the expansion of the temporary sales area. (PC13-07-C) LOCATION: 15101 Flagstaff Avenue PETITIONER: Home Depot U.S.A., Inc. C. Sign Ordinance Amendments for Drive-Thru Menu Boards — Consideration of amendments to the sign ordinance to allow for additional drive-thru menu boards for restaurants providing drive- up window service. (PC13-08-0) LOCATION: City-wide PETITIONER: City of Apple Valley 6. LAND USE/ACTION ITEMS --NONE-- 7. OTHER BUSINESS A. Ordinance Amendment Related to Driveways. B. Hanson Concrete Market Analysis. C. Review of upcoming schedule and other updates. 8. ADJOURNMENT NEXT PLANNING COMMISSION MEETINGS Wednesday, March 6, 2013 Regular Scheduled Meeting -Public hearing applications due by 9:00 a.m. on Wednesday, February 6, 2013 - Site plan, variance applications due by 9:00 a.m. on Monday, February 25, 2013 Wednesday, March 20, 2013 Regular Scheduled Meeting - Public hearing applications due by 9:00 a.m. on Wednesday, February 20, 2013 - Site plan, variance applications due by 9:00 a.m. on Monday, March 11, 2013 NEXT CITY COUNCIL MEETINGS 7:00 P.M. 7:00 P.M. Thursday, February 28, 2013 Regular Scheduled Meeting 7:00 P.M. Thursday, March 28, 2013 Regular Scheduled Meeting 7:00 P.M. Regular meetings are broadcast live on Charter Communications Cable, Channel 16. Agendas are also available on the City's Internet Web Site http://www.cityofapplevalley.org. 1. CALL TO ORDER Members Absent: 2. APPROVAL OF AGENDA 4. CONSENT ITEMS - -NONE-- 5. PUBLIC HEARINGS - -NONE-- CITY OF APPLE VALLEY PLANNING COMMISSION MINUTES JANUARY 16, 2013 The City of Apple Valley Planning Commission meeting was called to order by Chair Melander at 7:00 p.m. Members Present: Tom Melander, Ken Alwin, Tim Burke, Keith Diekmann, Paul Scanlan, David Schindler and Brian Wasserman. Staff Present: Community Development Director Bruce Nordquist, City Attorney Sharon Hills, City Planner Tom Lovelace, Planner Kathy Bodmer, Planner Margaret Dykes, Assistant City Engineer David Bennett and Department Assistant Joan Murphy. Chair Melander asked if there were any changes to the agenda. MOTION: Commissioner Scanlan moved, seconded by Commissioner Diekman, approving the agenda. Ayes - 6 - Nays - 0. 3. APPROVAL OF MINUTES DECEMBER 5, 2012. Chair Melander asked if there were any changes to the minutes. Commissioner Scanlan requested a comment on page 3 be rephrased. Chair Melander asked if there were any other changes to the minutes. Hearing no further comments he called for a motion. MOTION: Commissioner Burke moved, seconded by Commissioner Alwin, approving the minutes of the meeting of December 5, 2012, as amended. Ayes - 5 - Nays — 0. Abstained — 1 — Diekmann. CITY OF APPLE VALLEY Dakota County, Minnesota Planning Commission Minutes January 16, 2013 Page 2 of 5 Commissioner Schindler arrived at 7:03 p.m. 6. LAND USE/ACTION ITEMS A. Chick-fil-A Restaurant — Consideration of a conditional use permit, variances, and site plan building permit authorization to allow for construction of a 4,559 sq. ft. Class II restaurant with a drive-thru. LOCATION: Southeast corner of 153rd Street West and Cedar Avenue PETITIONER: Chick-fil-A, Inc. and SVH Realty, Inc. City Planner Tom Lovelace presented the request of the petitioner for the restaurant and included the zoning, site plan, landscape plan, grading and utilities, building elevations, and lighting plan. He stated the petitioner eliminated a parking space and added another table to enhance the outdoor dining area. An auto turn exhibit was provided for the route deliveries would use to maneuver at the site. He reviewed the set-back variance request on the south side of the property and stated staff felt there was not a practical difficulty. He stated staff recommended denial of a setback variance. He said gaining additional land so the south side of the property would meet the setback requirements. He reviewed the signage requests and did not recommend a monument sign on the north side of the property nor a sign variance for the additional menu board as requested. Jason Hill, Chick-fil-A, provided additional information. Discussion followed. MOTION: Commissioner Diekman moved, seconded by Commissioner Burke to recommend approval of a conditional use permit (CUP) to allow for a Class II restaurant on Lot 2, Block 1, CUB FOODS ADDITION. Ayes - 7 - Nays - 0. MOTION: Commissioner Diekman moved, seconded by Commissioner Burke to recommend approval of a variance to allow for a Class II restaurant to be located closer than 1,000 feet from an institutional or residential use subject to the following findings: a. The residential use is located along the west side of Cedar Avenue, an A Minor Expander road with a 150-170 foot right-of-way and a traffic volume of approximately 35,000 vehicle trips per day. b. A sound wall has been constructed along the west side of Cedar Avenue, just south of 153rd Street West. c. Cedar Avenue and the sound wall will act as a barrier and mitigate impacts generated from the Class II restaurant on the residential uses located on the west side of Cedar Avenue. Ayes -7- Nays -0. 7 CITY OF APPLE VALLEY Dakota County, Minnesota Planning Commission Minutes January 16, 2013 Page 3 of 5 MOTION: Commissioner Diekman moved, seconded by Commissioner Burke to recommend approval of the site plan/building permit authorization to allow for a 4,559 square foot Class II restaurant on Lot 2, Block 1, CUB FOODS ADDITION in accordance with the development plans dated December 17, 2012, subject to the following conditions: a. A building setback variance shall be granted from the required 50-foot setback requirement to allow for the building to be located 32 feet from the west property line, subject to the finding that the recent acquisition of an additional 20 feet of right-of-way at the intersection Cedar Avenue and 153rd Street West. b. A building setback variance shall be granted from the required 40-foot setback requirement to allow for the building to be located 31 feet from the north property line, subject to the finding that the recent acquisition of an additional 15 feet of right-of-way at the intersection Cedar Avenue and 153rd Street West. c. Revisions shall be made to the south property line or building footprint to bring the building into conformance with the minimum required building setback of 15 feet from the south property line. d. The trash enclosure shall be located on the restaurant's premises in accordance with Section 50.02(A) of the Apple Valley City Code. e. A variance from Section 154.04(J)(1) shall be denied due to the finding that the proposed variance request does not meet the conditions as identified in section 154.07(F) of the Apple Valley City Code. f. The City Engineer shall approve the grading and utility plans prior to issuance of building permit, subject to the plan revisions in accordance with the City Engineer's comments contained within this report. g. Drip-style irrigation shall be utilized to water the spruce and arborvitae trees in the far southwest corner of the site. h. All onsite signage shall be in conformance with Chapter 154 of the Apple Valley City Code. Ayes - 7 Nays - O. MOTION: Commissioner Diekman moved, seconded by Commissioner Burke to recommend approval of a building setback variance from the required 50-foot setback requirement to allow for the building to be located 32 feet from the west property line, subject to the finding that the recent acquisition of an additional 20 feet of right- of-way at the intersection Cedar Avenue and 153rd Street West. Ayes - 7 - Nays - 0. MOTION: Commissioner Diekman moved, seconded by Commissioner Burke to recommend approval of a building setback variance from the required 40-foot setback requirement to allow for the building to be located 31 feet from the north property line, subject to the finding that the recent acquisition of an additional 15 feet of right- of-way at the intersection Cedar Avenue and 153rd Street West. Ayes - 7 - Nays - 0. CITY OF APPLE VALLEY Dakota County, Minnesota Planning Commission Minutes January 16, 2013 Page 4 of 5 MOTION: Commissioner Diekman moved, seconded by Commissioner Burke to recommend that the City Council direct staff to prepare amendments to Chapter 154 of the Apple Valley City Code to allow for a menu board for each drive-thru lane for a restaurant providing drive-up window service. Ayes - 7 - Nays - 0. B. Leach Garage Variance 2013 — Consideration of a variance to increase the maximum size permitted for a detached garage from 750 sq. ft. to 1,344 sq. ft. (PC12-41-V) LOCATION: 8460 — 133rd Street Ct. PETITIONER: Thomas C. Leach Planner Kathy Bodmer reviewed the request of the petitioner to construct a 28' x 48' detached garage to store the equipment he owns and uses on the property that does not fit in the existing garage. She stated the petitioner was willing to reduce the size of the building to 26' x 48' for 1,248 sq. ft. to meet staff recommendations. Dr. Thomas Leach provided additional information and stated he would revise his plans to meet the guidelines in the City Code for accessory buildings on residential property. MOTION: Commissioner Burke moved, seconded by Commissioner Alwin to recommend approval for a 750 sq. ft. variance for a detached garage with the following conditions: 7. OTHER BUSINESS 1. The 1,248 sq. ft. detached garage shall be located in the rear yard in the location depicted as "Site 1" on the Site Plan. 2. All setbacks requirement shall be met. 3. All building height requirements shall be met. 4. All other City Code and Building Code requirements shall be met. 5. Total area of all garages shall not exceed the footprint of the house. Ayes - 7 - Nays - 0. A. TCF Bank Sketch Plan — Review of a sketch plan that proposes a 2,500 sq. ft. bank building with three drive-up lanes. LOCATION: Northeast corner of an existing 8-acre lot that is currently occupied by the Mount Olivet Assembly of God Church, 14201 Cedar Avenue. PETITIONER: TCF Bank and Mount Olivet Assembly of God Planner Margaret Dykes reviewed the sketch plan for a TCF Bank to be located on the Mount Olivet Assembly of God Church at 14201 Cedar Avenue. She stated the property is guided "INS" (Institutional) in the 2030 Comprehensive Plan, which allows for public and religious facilities. Commercial uses are not permitted in this designation. Any new lot for the bank would require an amendment to the Comprehensive Plan from "INS" to "C" (Commercial). She reviewed the site plan, elevation drawings, grading and landscape plans as well as pedestrian access. CITY OF APPLE VALLEY Dakota County, Minnesota Planning Commission Minutes January 16, 2013 Page 5 of 5 Michael Kraft, HTG Architects, addressed the Commission. Discussion followed. B. Review of upcoming schedule and other updates. Community Development Director Bruce Nordquist stated that the next Planning Commission meeting would take place Wednesday, February 6, 2013, at 7:00 p.m. 8. ADJOURNMENT Hearing no further comments from the Planning Staff or Planning Commission, Chair Melander asked for a motion to adjourn. MOTION: Commissioner Alwin moved, seconded by Commissioner Schindler to adjourn the meeting at 8:14 p.m. Ayes - 7 - Nays - 0. Re.ectfu11y Submitted, an Murphy, Planning ' epart ent Assistant Approved by the Apple Valley Planning Commission on CITY OF APPLE VALLEY PROJECT SUMMARY Agenda Item 5A COBBLESTONE LAKE SOUTH SHORE 8 ADDITION Applicant: South Shore Development, LLC Case Number: PC13-06-PZS Application Date: January 16 2013 Staff Reviewer: Thomas Lovelace Meeting Date: February 20, 2013 Petition for: Purpose: Comprehensive Plan Amendments • Rezoning • Subdivision by Plat For your consideration is a request by South Shore Development, LLC for an amendment to the 2030 Comprehensive Plan Land Use map, rezoning, and the subdivision by plat of two existing outlots totaling approximately 7.98 acres, located in the northwest corner of Cobblestone Lake Parkway and Elm Creek Lane. The applicant is requesting amendments to the 2030 Comprehensive Plan Land Use Map that would redesignate the property from "MD" (Medium Density Residential/6-U units per acre) and "P" (Parks and Open Space) to "LD" (Low Density Residential/3-6 units per acre). The rezoning request would change the current zoning designation of "PD-703/zone 8" (Planned Development), which allows for sand and gravel mining to "PD-703/zone 2", which allows for single family dwellings as a permitted use. The final request is for approval of subdivision by plat of the Outlots H and I, COBBLESTONE LAKE COMMERCIAL 3 ADDITION into 29 single family lots and two (2) outlots. Access to the platted lots will be via a public street that will intersect Cobblestone Lake Parkway. The residential lots will vary in size from 7,200 sq. ft. to 11,261 sq. ft., which meet or exceed the minimum lot area and lot width requirements. Summary of Issues: Approval of the rezoning and subdivision will be subject to approval by the Metropolitan Council of the proposed amendments to the 2030 Comprehensive Plan Land Use Map. The Assistant City Engineer has recommended several revisions to the preliminary plat, and grading and utility plans as outlined in his attached memo dated February 14, 2013. Revisions should be made to those plans in accordance with Assistant Engineer's recommendations. The applicant is proposing to incorporate approximately .25 acres of Outlot I into Lots 2-5 of the proposed 8 Addition approximately .06 acres of the existing Outlot H would be incorporated into Outlot A of the new subdivision, which the applicant would dedicate to the City for public park purposes. The applicant is meeting with the Parks and Recreation staff regarding the proposed park land dedication changes and will be presenting the proposed changes to the Parks and Recreation Advisory Committee at their March 7, 2013, meeting. Outlot 1, COBBLESTONE LAKE COMMERCIAL 3 ADDTION currently has a park, sidewalk, trail, drainage and utility and temporary construction easement over the property. Vacation of the easement will be necessary before any property is incorporated into the proposed development's residential lots. Staff is recommending revisions to their landscape plan as outline in this report. Recommended Action: Open the public hearing, receive comments and close the public hearing. It is the policy of the Planning Commission not to act on a public hearing item the night of the public hearing. Property Location: Legal Description: Comprehensive Plan Designation Zoning Classification Existing Platting Current Land Use Size: Topography: Existing Vegetation Other Significant Natural Features Adjacent Properties/Land Uses COBBLESTONE LAKE SOUTH SHORE 8 ADDITION PROJECT REVIEW Northwest corner of Cobblestone Lake Parkway and Elm Creek Lane Out lots H and I, COBBLESTONE LAKE COMMERCIAL 3 ADDITION "MD" (Medium Density Residential/6-12 units per acre) and "P" (Parks and Open Space) "PD-703/Zone 8" (Planned Development) Platted as outlots Vacant 7.98 acres Relatively flat None None NORTH SOUTH EAST WEST Existing Conditions Cobblestone Lake Park Comprehensive Plan Zoning/Land Use Single Family Dwellings Comprehensive Plan Zoning/Land Use Future Parkland Comprehensive Plan Zoning/Land Use Parkland with Trail Comprehensive Plan Zoning/Land Use "P" (Parks and Open Space) "PD-703/zone 7" (Planned Development) "LD" (Low Density Residential/3-6 units per acre "PD-703/zone 2" (Planned Development) "P" (Parks and Open Space) "PD-703/zone 7" (Planned Development "P" (Parks and Open Space) Development Project Review "PD-703/zone 7" (Planned Development) Comprehensive Plan: The property currently has two Comprehensive Plan Land Use Map designations. Out lot H is guided "MD" (Medium Density Residential/6-12 units per acre) and Out lot 1 is guided "P" (Parks and Open Space). "MD" land uses include townhomes, other attached single-family dwellings, and low-rise apartments and condominiums at densities that range between six to twelve units per acre. This designation fits with the "M-4", "M- 5", "M-6" (Multi-Family) and "PD" (Planned Development) zoning districts. Property with the "P" designation includes all existing parks, playfields, trail corridors and golf courses; and property intended for future park purposes such as Out lot 1, COBBLESTONE LAKE COMMERCIAL 3 ADDITION° The applicant is requesting an amendment to the 2030 Land Use Map that would re-designate most of Out lot H, COBBLESTONE LAKE COMMERCIAL 3 ADDITION and approximately the west half of Out lot 1 to "LD" (Low Density Residentia1/3-6 units per acre), with the proposed single family development having an overall density of 3.6 units per acre. The 2030 Comprehensive Plan describes Low Density Residential as areas intended to create, preserve, and maintain the places to live that define the primary character and identity of Apple Valley. A variety of housing types may be built in the "LD" areas including single-family detached dwellings, duplexes, twin homes, townhomes, and other types of low density attached housing that range between three to six units per acre. Most single-family residential neighborhoods are zoned "R-F, "R-2", "R-3", and "R-CL". "R-5", "M-F, "M-2", and "M-3", and "PD" districts are eligible for this land use category provided that the performance standards are met. Livable Communities impact: The proposal will add 29 market-rate single family dwelling units to the City's existing housing stock, which is consistent with the Livable Communities Act. Zoning: Outlot H is currently zoned "PD-703/zone 8" (Planned Development), which allows for sand and gravel mining as a permitted use. Zone 8 was established as a temporary zone within this planned development in 2001 in order to allow the existing property owners the ability to continue mining certain areas of the development site until such time as the mining material was exhausted or development happened. It was expected that when one of these events occurred, the property would be rezoned consistent with the development proposal. The property identified to be used for the single family development is proposed to be rezoned "PD-703/zone 2", which allows for single family, two-family, and six-unit townhouse dwellings as permitted uses. The planned development ordinance's minimum lot area requirements for single family lots in zone 2 are 4,800 sq. ft. for an interior lot and 7,500 for a corner lot. The residential lots will vary in size from 7,200 sq. ft. to 11,261 sq. ft., which meet or exceed the minimum requirements. Outlot I is zoned "PD-703/zone 7", which is a zoning classification that allows for public and private open space, including the Cobblestone Lake storm water pond. Any portion of Outlot A of the proposed subdivision not contained within Outlot 1 will need to be rezoned to "PD-703/zone 2". Preliminary Plat: The preliminary plat indicates the subdivision of two outlots (Outlots H and I, COBBLESTONE LAKE COMMERCIAL 3 ADDITION) into 29 single-family lots and two outlots. Outlot A will be dedicated for public park purposes and Outlot B will be private open space that will be maintained by a homeowners association. The City's subdivision code requires that a plat include drainage and utility easements, a minimum of ten (10) feet wide, which shall abut the street right-of-way (r-o-w) and shall be centered on the rear and side lot lines. The preliminary utility plan indicates easements around the perimeter of each lot in accordance with the code. Access to the proposed lots will be via a public street that will be constructed on platted road right-of-way (r-o-w) that will have a width of 52 feet. On-street parking will be restricted to one side of the street in accordance with the planned development ordinance. Engineering staff has reviewed the preliminary plat has reviewed the proposed plat and has the following comments: • The applicant has indicated numerous horizontal curves on the roadway. The curvature of the roadway shall be adjusted providing a minimum horizontal curve of 100 feet. • On Cobblestone Lake Pkwy, an additional parking stall on the north side of the parkway shall be eliminated for sight distance at each entrance. • The easements on Lot 19, Block 1 shall be reviewed in further detail based on utility stubs that are utilized. Recreation Issues: The Cobblestone Lake Park Land Sketch shows Outlot I, COBBLESTONE LAKE COMMERCIAL 3 ADDITION as future public park and is part of the development's overall park dedication requirement. The applicant is proposing to incorporate approximately .25 acres of Outlot 1 into Lots 2-5 of the proposed 8 Addition approximately .06 acres of the existing Outlot H would be incorporated into Outlot A of the new subdivision, which the applicant would dedicate to the City for public park purposes. The applicant is meeting with the Parks and Recreation staff regarding the proposed park land dedication changes and will be presenting the proposed changes to the Parks and Recreation Advisory Committee at their March 7, 2013, meeting. Outlot I currently has a park, sidewalk, trail, drainage and utility and temporary construction easement over the property, therefore any forfeiture of property in Outlot I for residential development will require the vacation of the 2 easement. Dedication of the future park land to the east, north and west of the 8 Addition development site as well as along the west, and north edges of Cobblestone Lake was part of the review of the COBBLESTONE LAKE SOUTH SHORE 6 ADDITION residential development proposal in 2010-11. At that time a separate application was submitted by South Shore Development to vacate a park, sidewalk, trail, drainage and utility and temporary construction easement over the park land in order to incorporate approximately .18 acres of the park land into the residential subdivision in exchange for .16 acres located adjacent to the east of the easement area which would become part of the parcel that is now legally described Out lot A, COBBLESTONE LAKE SOUTH. SHORE 6 ADDITION. Also, during the City's final review of the South Shore 6 Addition, the applicant requested that the .5 acres of property now legally described as Outlot I not be dedicated for public park purposes. Because the City was reluctant to give up its rights to this property without a development, approval of the vacation and 6 Addition final plat was contingent upon the park, sidewalk, trail, drainage and utility and temporary construction easement remaining over Outlot I. Therefore, this issue will be need to be revisited as this proposal moves forward and will likely be discussed at the March 7 Parks and Recreation Advisory Committee meeting. Grading Plan: The site is relatively flat and has been graded as part of the sand and gravel reclamation. The site will be mass graded for development, which will include grading for the streets, utilities, and building pads. Engineering staff has reviewed the submitted grading plans and his comments are provided in the attached memo. Availability of Municipal Utilities: Municipal utilities to serve the proposed development will be available by means of extensions of existing watermain, storm sewer, and sanitary sewer lines located in the Cobblestone Lake Parkway South right-of-way. All public utilities and streets to serve this development will be designed by the City. The City's Assistant Engineer has reviewed the utility plan and his comments are included in the attached memo. Landscape Plan: As is typical with other single-family residential development in the city, no overall landscape plan has been submitted. The subdivision code does require, at a minimum, the planting of one (1) tree per lot. That tree shall be placed five to seven feet inside the property line. The applicant is proposing to plant a minimum of one deciduous tree per lot in accordance with City code. The plan identifies one Marshalls Ash tree per lot, two Black Hills spruce trees and one Prairie Fire Crabapple tree in each corner of the street intersections, and 14 Northwoods maples in the boulevard area along the north side of Cobblestone Lake Parkway South. Staff has reviewed the proposed landscape plan and has the following comments: Planting of all ash tree species is strongly discouraged due to the potential of emerald ash borer infestation. The proposed ash trees should be replaced with another suitable shade tree species such as swamp white oak or honeylocust. Planting Northwoods maple trees near driveways or sidewalks may result in concrete damage caused by their flattened root system. • There are four Black Hills spruce trees proposed to be planted at the intersections of the proposed street and Cobblestone Parkway. The spruce trees should be located in a manner that will not restrict visibility as they mature due to retaining foliage year round and will not extend over and restrict the public sidewalk in the future. These spruce trees should be planted a minimum of twenty feet from the public sidewalk. Street Classifications/Accesses/Circulation: Access to the proposed lots will be via a public street that will intersect with Cobblestone Lake Parkway, a divided street with a raised median; and Elm Wood Lane, which will be a full intersection. In order to allow for full access to and from the proposed development from the most westerly street intersection it will be necessary to remove a portion of the raised median in Cobblestone Lake Parkway South. Also, construction of the proposed street intersections will cause the removal of a minimum of four (4) recessed parking spaces located along the north side of Cobblestone Lake Parkway South, three (3) spaces at the west intersection and one (1) space at the east intersection. All vehicular access to the dwellings units within the development will be from Street A. The proposed width of Street A will be 26 feet wide paved driving surface, which is typical for this planned development but is 6 feet less 3 Attachments: Assistant City Engineer's Memo Site information Map Landscape Plan Location Map Preliminary Plat Street Profiles Existing Comprehensive Plan Map Erosion and Sediment Control Plan Details Zoning Map Erosion and Sediment Control Details Park Land Sketch Title Sheet Grading/Drainage Plan COBBLESTONE LAKE 6 ADDITION Existing Conditions Map Utility Plan 2011 Easement Vacation Plan than a typical local street. This will require that on-street parking will be limited to one side of the street only, which is also typical for this planned development. Staff has not identified any outstanding issues with the traffic circulation within the proposed subdivision, Pedestrian Access: Sidewalks, 5 feet wide, are proposed along both sides of Street A which will intersect with the existing sidewalks along Cobblestone Lake Parkway South. This should provide good pedestrian circulation within the proposed development as well as providing connections to other areas within the Cobblestone Lake development. Public Hearing Comments: Open the public hearing, receive comments and close the public hearing. It is the policy of the Planning Commission not to act on a public hearing item the night of the public hearing. 4 Infiltration City of Apple Valley TO: Tom Lovelace, City Planner FROM: David E. Bennett, Asst. City Engineer DATE: February 14, 2013 SUBJECT: Cobblestone Lake South Shore 8 Addition Tom, following are comments I have on the Cobblestone Lake South Shore 8 Addition site plan dated January 16, 2013. Plat/Street Layout • The applicant has indicated numerous horizontal curves on the roadway. The curvature of the roadway shall be adjusted providing a minimum horizontal curve of 100 feet. • On Cobblestone Lake Pkwy, an additional parking stall on the north side of the parkway shall be eliminated for sight distance at each entrance. * The easements on Lot 19, Block 1 shall be reviewed in further detail based on utility stubs that are utilized. Site Grading & Storm Sewer • Lots 1-10 Block 2 shall have a minimum low opening of 928.0. • The existing storm sewer stubs to the site off Cobblestone Lake Parkway shall be utilized to collect water from the street and Out lot B. • Drainage and Utility easement shall be provided over the storm sewer in Out lot B. * The applicant shall be responsible for restoring all park areas that are disturbed. • EOF shall be identified on the plan Sanitary Sewer & Water Main MEMO Public Works Department • The west sanitary stub to the site shall be removed and a new connection shall be made in alignment with the west entrance. • The existing hydrant at the west entrance will need to be relocated. • The applicant hasn't provided storm water infiltration for the site. Water should be directed to the regional infiltration areas that were construction around Cobblestone Lake. To accomplish this, a 20 foot wide easement will need to be provided. This could occur somewhere between Lots 11-14 of Block 1. Also, to reduce the amount of storm sewer pipe and additional 20 foot wide easement could be provided between Lots 5 and 6 of Block 1. Public Infrastructure • The final design of public utilities and streets shall be performed by the City. , COBBLESTONE LAKE SOUTH SHORE 8TH ADDITION LOCATION MAP 111:.. 114 g wee,,,1401101117t; ionudINV COBBLESTONE LAKE SOUTH SHORE 8TH ADDITION EXISTING COMP PLAN MAP DESIGNATION "MD" (Medium Density Residential /6 -12 units per acre) and "P" (Parks and Open Space) i .. COBBLESTONE LAKE SOUTH SHORE 8TH ADDITION "PD- 703 /zones 7 and 8" (Planned Development) le rr 1 L. _ - ,, - v ass....,,awl a SiortrAvA 1 olliP mirtair 51"15041 Ai VP ry x} At t: wi 04 r r.: . k a II` 2 .. rw; -� ba694. � .: fi n! ..„, I Ig Di RAMO •-■ r2) t , XV 09-068(M) :3NOHd C.Mg NY 1.MiB 'On .S OOSZ Sd0A3AEIS 1 alTINION3 1 SONNVid ou 'fflH sewer 0 C\.2 .4 ‘.4 c Cr,:t io ON F4 • LLJ • L-I cir) • 0 , Z 0 • < 2 0 CJ) 00 00 z1/5,11 ..1.0 °T3 , fipur , 41"" 0 -i tcfg u l:d ' q 'C g„ .upo S,41 1.41 g£1,3 VIDS3NNIV, VNICE HI IOS 3111,13AV 331,V83 0089 DTI `INDUCTIRARG auoris HJflO aaJ IHRHS 111 VICS3NNI11 0 T1Y lcia NomUuv HIS aams Hmo.; 2NYJ moisnaHoD 4' ,i. - 11 .t,...• ''''''PliAw51 • V "." • • • • - , - •• ,^^""' 8 c/a sew ti7n--052(Zg6) , XVJ 17•1 :3N0Hd N 1S9 'O t "Oi ,1 .0 A OM SOAPS / S33N101\13 / SONNtrid o u '01 , 0 h — (7) 0 1 ; — -- .. VEMIS=80143.3.810230.5., • 5,499 VLOS3NNINI 'VNIC11 c HLS 3riN3AV 301 0089 OT1 `,L.K31ALIOrl1ASCE EHOHS HMOS S.HOLLICINOD ONLISIM V.LOM,1111 '01111 31d11 NOLLIGGV ILLS EMS HMOS ZW1 ERIMEMOD HL ON 9 - \ _ _ ; M OQ 6O 92 / 41.1922.22MPEr 4 .1_01LiC 5 L d2 - • • 21 nOZ A,P,X309-1,ZU »o xv i :3N0Hd CCM Nil 'Zi7 '41 .0 M CZ SO3AdOS / Sd33NION3 / SENNtild " 0 Ul sew z . . • 7 5.81 ti/B/L1 .1DI ,OPur' un Aq 'w co:pod. uo,,,,nedc !up, 1.11 A 'VNIC3 '1-11.`i0S 31,13AV OL.9 DTI `INNIAIdOIS.ARCE aucgis NOLLVIRIOANI aids VIOS3.1111 3TV Ildef NOLLIGUV 111$ ENS llJ±f1O 3 WJ NOISTIMIOD • " ' „.. • . co cr 0 t tta :XVJ 171 :3N0Hci ZCCSS `0Z1 .InS . Q8 •0 'M OC SdN3AgIS / S2NIDI\13 / g L JL jL IL J u 0- ,r 0 <c 0 gE105 00S3NNIN VN103 1-11.0 S 211N3AV 30N. DTI s ImaNdoria.Aaa auolis 80d Erld A.a-vicnnaud V.LOS3NNIN ').3171A Ylcide NOLLNICEV HL O PialOS DWI 1-1.1.2,10N 2177017 £0'6C 9.5 0 9- Nt„02, 420 22'213 11.1 I "9 00,5 gg LOW 1” 1 0", ' , e c - C.') s A 0 0029 Hmos SislaLSTIE1[103 CD =, D\ CD\ 0 ( r) 7 52 (.1 allonrvia) Et . 1-rv's . 1,10.1 .1011d) 4 100 0 00/ 20 P 0-1+Z0 qi l.,`,. a,f:.' •'A! ', .`�.�...,.ko-'�3A? ti: v � a'S ','i'-kg,.•,'.,,w,,,..'...,' SS Vi0S2.14.V , 0411 � j 3 � ' 1ll� J( os i 2J0 c F . : � ' , :. d IM OD ka # Ga 'Imam V1QS3NNIW 'ArIlliA � NOInUav FIN IONS H>Itf1OS y S.....7 +a.......4 #.s.. , ,..,,,,,. #'i.,...'.. "¢ -... .A'dic. F9. �: 3r,13AV 3ONV8J ( 0099 A ' •� 31ddV BIO1' IE00 ,, v%), .F .:��,a a. a' Y U 'S Y t� F i. ' DWG SNOISV 3a F idab,,,,,4a,,,,,, ,T,Vai,,,,3.� ,�2115k��'.'SaX.1�.'e ' . - .:..Y.';... 0 309 - G17z z _ li3 QVO PROJECT N0, `. 22241 -60 . g eN'6ea tl6�Et aloe ] } '3'd ''J ll301.0 0, • o;,0 0cu u E ry � g3o ay; Jo snto� eye Japan t �oualtca�oud pasuaop ,(jnp o' D uo�,rh�atlns a�a�lp I' lw Japan l'2'2 p a o ow ,tq pato��d soA, ,l�a�s u�jd sryl ? �b11» �q.1.4 I ??? ffi>i',:a�v�SSI`m' ]3i::S4 'i 1�'b ?E1•. '.c'$`fi' 1 068;Z66) , xV3 tt4S 068(Z46) :3N0Hd c£4'ss NYI 'ort 31irs z� �a u� +� ooga Sd0A3AJnS / Sd33NION3 / Sel3NNVld ;oiij '111 .., ,.,< : — . ., ... • • ,,,,,, ,,,,,,,....,,,,,, •,,,,,,,,,,.... : W.,,,v,t,,pg,y,•,,vy.,....,...,,,,p,,,,, , ,r VIDS,N. 'VNI103 mpos 311N3AY 3ONVad aces ,..,,,,, ! ic ,- E r3 CI ' zL /6 /LL aLYtt sMOtsve�zr ..,,,,, i 4 4,k4.114, CAD FILE 22241 -60ERD PROJECT NO. 22241 -60 `: g5 . 0 ' 41 "n/s/t1 '..,1 V/SS 'LLNaNdormAaa in101-IS 1-1,1110S a r: ',", i Aieb. ; i DTI .NIV: ' S'ilVIRCE 'IMOD INEIGIS V NOISOE 10.,4$8,0,, pt.., 7uTr4;2::' ', : VIOS2NINAN MITA 31ckiV . u. ait.. ,E)Lii Appao Aqs, i., ; NOILIGGlif ILL 1011g 111110E1 MI ERLSERITOO $1739-0613(ZS5) )(VA . 1 , 1 7 69-06B7S6) :3N0Hcl LE r■111 • On .S 317 'a,) WL 0056 alOAJAT)S Si]]NiON3 al3NNV1d u sq 4,7 d a va 1R fig .439,M9,179,X7 w H 4 1 4 N 1 g v ; m i ° 4 4 .' l i m :h 1 0 4 1 i A 0 ' .., 2 . 1h ‘. 1 i q N 11 ! g— iFi a Plc152 Z D I — mP'Oei,D9-1,,ZZ L'EZ6 \' - liZ6 0,, '6 Z6 VIOS3NNIN , imaR . 1411 DS 311.0 3DNIVU 0099 DTI Imam:la aaoHs 1-1,1,flOS Old aVNIVECI ONIGIVED AUVNIA112Ed 0I003NNIW 31ddt, 1\10111a0 FUR DOHS HM1O WI HOISTIEDIOD tag •XVA tr,D9-069(M) :3909d ISM 99 ,09oine 'OZI 31199 'Ztr 'Qd 013 '9 0000 Sel0A3AMS / S]]NlIDN3 / '°U 6 11 1 ; • SOW 0 fl fl - C if C) (n LL1 0 7/ t : ,",,!-:\ 1 i ' - - ---- , 0 , ' 7 ' 7/ ---T, ' , >4 ' 0 0J 00 00 0 C.1 0 ) 00 00 • VOdO O)ZL 0000. 90 ' 09 -00000 Es. 'oN bl /stll . �g~y VLOS3NNI,1 ',N103 ER .r DS 3nN3AV 301 O099 a?:1OHS HL.lOS MA.VAd d6:$2 d I 3lddV MI EalgaliE100 a "�` -� s.,' 5 3- .:e. ...T Vs,}A. �'3: , c. 5 CS '� t� Gl - Jivo -- �,._�ar. �ci3 .l �, .._, !'. X.: i.4R. hu "�Y i�.. `..` ,w "i�..°� iR.1�°^�3i�i'`�.G �^Y ki CAD FILE 11 22241-60U _r ; I)-Ltzz L 103rOLIcl ... , 4 , f <• a aNdOri1 . Cf '3'd U.000 '0 '}301` ,10.d ay; a o smo a .ra un �aau;bu- I o } cau P , j y o a ;a } hind AITI,;f>,L{1 .(.Q. �nttOlSSaj pasuaa('1 App a WO 1 }oq} puo aoicuuadnc }oanpl s V.1t0S3NN.W 'J,311V71 a ui �{ pa�oda.+dl � d NOILI W HL9 EONS IHJ lOS £ utd ap{; Avu; Ryiyaaa Rgaj, :i...ti.:: a .,i '^: "` r. ti .: : -y'_. A ''+ wv 4.�xe.L..N 3`*�... : •.fhdi' � `r. .. s: • h,' R' q`% L Y3Yab' �.' tii' �7�1�,` it�i1R$ �� �! 1C$= t� _'t}��.`i�S.e<tiY�ay.... 'iTi:R:°fi3 t zs- os9(zss) :acrd trboa- o68(z5s) :3NO1-1d agg NW rvsuan3 `QZl 3fS ©QSZ SdO) 3A 1f1S / S 33NION3 / S213NNdld ® s � � SSW rJ � h•Y l nn V Iy, y TNT cJ 1717M-0E43(M) :XVJ 14 :3NOHd LMS NP N ort auns '08 , 0 • 00g SLIO,C3AWS / S2,133NIDN3 / SONNVid 'IN saw \., uJ i— z \\. b C `VN103 `1-111)0S 3010)1 3DNV10 DOR9 NOLIJGUV 1119 MOUS HIM? 331r1 EaLSTIEMOD DTI `INaltidOrla. Aaa find adVOSUNTI VIOS3NNIN • “i6 ...• •. • . • • ,; \ z 0 0) z 0) a. 0 0 uJ 5 0 p,ccl z. anuis HIROS ?I\TNIIMEtid 31ckft, • I rl 4 6 6 2 = 111 11101 :11 1.0e0270 es.i`EX.autptrrsxare�s>. ;x,,rc- ai'<e?XE- �iL X.2?..'A'2$EC± "''.'.. �'R 'iv'Y.a:.aZa::.?.t'�yy`F.F -:?t '✓��I':;iel 6i4gg HiOS3NN]W ' 0.11 ' RUTS 103 ' HS 3t1N3AV 3: Ndd3 0099 3` `I.i c�C3'� as au0 S H3 flOS KU I mom ,Ma ms VIOS3NNIIN 'J,311Y 3°iddb ' 0 Q 0 0 , asap 7 x: ,i ^"� �� k :r..' t••nY'? z as5ti `r+";a x. �.r?P. `d+i SoyNS^#.'i�Ir.?t �afF'4 ?e ca_,Vr.- :,i"�:._'ivp' U Z 1 1.V1 'r:.t...... ..4`•�i�ts:. 1 SNOIS tA3U tix:n..Sea:Arsv,.k_=4 .:. :...,,`a�riF?+4.'.'.YSA`Ei , ..41 4` _.'..•�S CAD FILE 22241-60PRF PROJECT NO. 22241-50 .'`''i �egci�d7cr� : t san�'�tCS+M'a�tc ”Z9- 059(ZS6) :Xv.i ti •3NOHd Mg NH 'TAs.na 'on in M DOSZ 1£'826 £L'8Z6 r6Z6 1 60'Z£6 'szs i H 1Ad 00'0g-14 'A313 iAd 90 Z£ 21726 OAd OO'00+ I I 'A313 OAd i'1'Z26 1 1 1 2£'126 1 ! E 1 E 1 ■ £8'026 1 1 � I 3 1 1 I I89' 6Z6 I i 1 I ! I £1'626 1 t t ,Od HJEH i b£3 t-1-tr 'A313 S NIOd H I 69726 i tt f �l� 1 U j G? � 6 t W - 1 GO't£.+a - j l j tl 33i�1S N 11.0n sNOO 1 NU)38 I C 11) 0) O CA 0 co D 1 + 0 0 0 tD Io O co O to 0 O a 0 0 u0 0 0 lV O 0 N O O O 0 0 0 0 00'00 +0 • 1332115 + iibd 3/01 3N01S31880010 �1dz� z Z 0 a/ I'; — Mrs �adas —ltizaz STREET A - 1 , 29-062(6) , XV o9-051,(z96) :MOM LMS NI/ 'OZI atinS ' OOSZ Sa0A3A111S 1 a133NIDN3 1 SENNVId SALP1 gC9gc ,053.131 'Vt4103 HLIOS 311N3AV 33NIVW 0029 DTI I LLNEAldCY11ARa aaOHS HMOS 80J SITaaa VIOS3NNINI 3 NOIflUUV HU MOM HIflO DiV1 HOISEHEIOD -J ae F (c) a— = 0 0 0 0 iNdsz scgg.".,,,',11,2-7,77aa""r--7-17T; �.....a��:���f`a�sR'��..�as., s._..�E. e�iY's��'. ,'� .'� -.-... fi. ,..,:r� :. .�. ., i.., r�x... `eh. • .r .z frI,Z9- 069(56) :xb.I 14 - 069(296} :] OHd l._ :gg N 'mnlnsNEng 10Z1 J.InS ` Z� • I 'u0 'M 0052 SloAmms / S833NION3 / S 3NNV1d '3 I r 111 Qin 0 0 #o" g NVI `3T1L 3 f 1 `3AI26t1 J Mena TNV 1B U69l. DTI `ZNUYIdoria. act Soxs HnoS :11o,1 N4ItLIGGV HJ S ��IUI S H+LnOS f >IY1 RIOLLSUg8:0D ' l V�� 7 0 _ LIJ O (1) 1.1.1 co ( 0) 0 ti I I - tn cJ cd rJ Cc ' Q Q 0 0 0 11 0 do sc:rill11111111111111 & I tti 9-o6(/56) xvi t o(s) :1044 1c1 N1 nsg o AinS 'ZF 'AI 1.1 S80A3A1f1S SgENI9N3 1 SONNYld '3UI 18 sowe $ '( •t s' ,570 MORS IliMS 3,015353933 X20 1101 JO 3.00,00.00S 911761. \ 3,00.0. 11161 stIss vios3.01 .iunos Intaw 30.1.4 immananaa MONS ILLIOS Jirld VIOSNKIM 31ddY mounav ILL9 SHOHS HMOS 3)1r1 RNOISETIEIOD H51 I I 4c.:43 f i 9 ,4 . 44. 000r ad /SO ° . 01 w4pt 40, ixk / ilt11, ‘11141,„ M.gi, _ .44.P:90t,,wo C3S 11 • • . el • 4 , . • 3.oucoocit, ay » ... t 4 . 4 0 • 'go . . dl . 0 . . ; • 4 . i p • . • 4 .. d *. • * 7 . II: ii • f . •• . e 1 . . f p. • lii " r • : , 2141, ...... SO • c , 0 06 • • ii 4 . ' • * . 6 c• • % *: I : 4 4 . d 6 • . .4 • 4 . 4 • ' * . 0 4 I • • a 1.) • • •* , . : . . : 41 q 1 . •* : P. .° . • t *.... u ;*. • 4 : • *.. • 41, • • ..* • • . 0. • a 4 , • . • . .6 . , •. • * • f s • . 4 4 4 4 4 0 w . 0 • 4, ... 0 • .... HiflOS 3>ffl 11N01:7 0.1 'I-1M rt.-1p tr, JO 1854I 100,00.00S £9 1 ArrIrmgro 6 i r.Of 60 60DZi Li Li. 0 tr) Id :12 I :3 C). I 04 C) \10 LJ () '6 11'2. ------ ocyte is. 00'18 iS3m -- : 23 1S3M 00 rri ,;, IS3M 8 IS3M 00 1 L° s' 3 gs 1N 73 85 eora 101Id) 2 Hinos 8L176L }- 00'68 Hinos oo L >I 0 0 1 8 RLON ££Z8Z 3.9,30.00S .E ..„-e H1d0 00 HMOS 00'68 AI M..S1.6, OS 00'68 H1NON 06 6 trON C: roON Hinos cg7Lz , ) (6 ki J> • (\ DC- N011100V 1VION3WINOD 33,1 .01,318803 c 0 ,04 ;5 71 „. . , - 'O 3 sio JO 3N11 Al213 3 '0721 •Z' '1 1 , *I '9 • :',1-353 4 .7,' „ST., 00.68 Hinos 00 ,nos acne 6V201. 1-112:ON V_LAHs H \ v 1:111. Lel 1 1 F)41t 1:) HJSIOS - 1,180N 00 1.9 ?it _„ z Lciliii r,lzv) —, ° ,, „,,-5,„.,, ( 7 VP:cs , G c sik' k 1 \ , ' ' ) ) ; 712- ‘ ri 7,..-Vi,911€;54"'S I\ / / \\ - Hinos Cg7 LZ 160N SC ZSZ .3 81:46, Lc, ri) S >10018 LL1 HU4ON 91fZ0f7 „ Jo • 0 <C, (1■\+ D� ( C . 4 rf;° e ZI uJ '61 COBBLESTONE LAKE SOUTH SHORE 6TH ADDITION OU TLOT A CNNillilNiNi i O 1 1 f{ iFijfilhJ L'T {SL7 r l+kfN:Ith{1Nl4 I . BNNiI'r�+l+ll+ fI $ +Illll'Ilflf,` anicw 0 'L0flT00 0'40.000 \ o Agenda Item: Number: Staif Reviewer: Thomas J. Lovelace HOME DEPOT CONDITIONAL USE PERMIT Case PC13-07-C Applicant: Home Popotkl,54.;El00 23 2013 Application Date: January Meeting Date: February 2Q„ Petition for: Purpose: • Outdoor Display, Sales, and Outdoor Storage Conditional Use Permit The applicant is requesting approval of a conditional use permit (C.U.P.) to allow for the expansion of their temporary outdoor garden sales area in the southeast corner of the parking lot, the extension of the existing temporary sales area in front of the store and the addition of bulk storage areas along the east and south side of the garden center. The site is located at 15101 Flagstaff Avenue and is the current location of an 114,841 sq. ft. building materials store and 24,990 sq. ft. garden center. The applicant currently has a C.U.P. to allow for a temporary outdoor display and sales area from April 15 to August 1 of each year in a 12 ft. x 26 ft. area to the west of the garden center entrance and a 12 ft. x 43 ft. area to the east of the entrance. In 2011, the applicant also received approval of an interim use permit (I.U.P.) to allow for the establishment of two temporary outdoor garden sales areas from April 15 to June 15 until June 15, 2013. Approval of this C.U.P. would replace the I.U.P., therefore the C.U.P. should be subject to the terms and conditions set forth in the I.U.P. with the exception of the timeframe. Planned Development No. 679 allows for "outdoor display or sales of retail goods conducted by an occupant of a shopping center or freestanding building" and "outdoor storage of goods and merchandise provided said storage is oriented and screened as required by the City Council" as conditional uses within zone 2 of the planned development. Summary of Issues: The proposed expansion of the outdoor display area into the parking lot will require the temporary loss of 24 of the 467 parking spaces. The minimum number of parking required for this facility is 219. Therefore, the loss of 24 spaces should not have an adverse impact on the needed parking for this use. Under no circumstance shall material be placed in the east/west vehicle lane located in front of the store. The temporary selling center area will display a selection of assorted annuals, perennials, shrubs, trees and bagged soils. A wood picket fence will be used to delineate the area in the parking lot. The temporary live good and commodity bulk storage area along the east side of the garden will result in the loss of up to 13 parking spaces. This should not impact on the property. However they indicate that the area will encroach approximately 11 feet into the existing drive lane along the east side of the garden center. Public safety has expressed concerns about the ability to access that side of the building for emergency purposes. The proposed temporary selling area directly in front of the store and the temporary live goods and commodity bulk storage areas along the east side of the garden center will be blocking doorways to and from the center. This will create an increased hazard for occupants exiting the building. Therefore, the function of the means of egress system must be reevaluated to verify the proposed display and storage areas will not result in an increased hazard to the occupants. The bulk storage area along the south side of the garden center will be located in the pallet storage area and will encroach into the receiving dock's truck turnaround area. The applicant has not indicated where they are going to store pallets that would normally be located in that area or have shown how their delivery vehicles maneuver in and out of the receiving dock. The applicant has not provided any details on how or if the bulk storage areas will be screened. Recommended Action: Open the public hearing, receive comments and close the public hearing. It is the policy of the Planning Commission not to act on a public hearing item the night of the public hearing. Existing Conditions Property Location Legal Description Comprehensive Plan Designation Zoning Classification Existing Platting Current Land Use Size Topography Existing Vegetation Other Significant Natural Features Adjacent Properties/Land Uses HOME DEPOT CONDITIONAL USE PERMIT PROJECT REVIEW 15101 Flagstaff Avenue Lot 6, Block 1, HILLCREST ACRES "C" (Commercial) "PD-679/zone 2" (Planned Development Platted Location of Home Depot building materials store 15.09 acres Relatively flat with large storm water pond along south side of the property Trees, shrubs and grasses commonly associated with commercial building development None NORTH SOUTH EAST WEST Hillcrest Acres Multi-Tenant Buildings Comprehensive Plan Zoning/Land Use Orchard Pointe Townhomes Comprehensive Plan Zoning/Land Use Hillcrest Acres Multi-Tenant Building and Fischer Sand and Aggregate Mining Operation Comprehensive Plan Zoning/Land Use Discount Tire Store and Vacant Lot Comprehensive Plan Zoning/Land Use "C" Commercial Attachments: Approved Interim Use Permit Comprehensive Plan Map Approved Conditional Use Permits Zoning Map Location Map Site Plans "PD-679/zone 3" (Planned Development "MD" (Med. Density Residential/6-12 units per acre) Planned Development No. 679/zone 1 (Planned Development) "C" (Commercial) and "MBC" (Mixed Business Campus) "PD-679/zone 3" (Planned Development) and "SG" (Sand and Gravel) "C" Commercial "PD-679/zone 3" (Planned Development) Fence Photo CITY OF APPLE VALLEY RESOLUTION NO. 2011-57 A RESOLUTION APPROVING AN INTERIM USE PERMIT FOR THE HOME DEPOT TEMPO A * Y OUTDOOR G EN SALES AREA EXPANSION AND ATTACHING CONDITIONS THERETO WHEREAS, pursuant to Minnesota Statutes 462.357, the City of Apple Valley has adopted, as Chapter 155 of the City Code of Ordinances, zoning regulations to control land uses throughout the City, and EREAS, pursuant to Minnesota Statutes 462.3597, the City of Apple Valley has adopted within its zoning regulations the authority to grant interim use permits, and WHEREAS, pursuant to the City's zoning regulations, an "interim use" is a temporary use of property until a particular date, until the occurrence of a particular event, or until zoning regulations no longer permit it, and WHEREAS, approval of an Interim Use Permit for the Home Depot temporary outdoor garden sales area expansion has been requested by Home Depot U.S.A., Inc., and WHEREAS, review of the Interim Use Permit request to determine its conformance with the applicable regulations and performance standards has occurred at a public hearing held on April 6, 2011, and WHEREAS, the Apple Valley Planning Commission recommended approval of the Interim Use Permit request subject to certain conditions on April 6, 2011. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Apple Valley, Dakota County, Minnesota, that an Interim Use Permit for the Home Depot temporary outdoor garden sales area expansion within "PD-679/zone 2" (Planned Development) zoning district be approved subject to the following conditions: 1. The permit shall apply to property located at 15101 Flagstaff Avenue and legally described as Lot 6, Block 1, HILLCREST ACRES. 2. The interim use shall be conducted in conformance with the approved site plan, dated March 9, 2011. 3. Only live plant material shall be allowed in the temporary area located directly adjacent to the store. 4. Adequate clearance to and from all service doors and enter/exit doors into the store, in accordance to the city's building and fire codes, shall be maintained. ATTEST: 5. Live plant material and bagged soils shall be allowed in the temporary area located in the parking lot. 6. The area in the parking lot shall be delineated by a wood picket fence. 7. Material shall not be placed in the east/west vehicle lane located in front of the store. 8. The Interim Use Permit shall terminate on June 15, 2013, or until zoning regulations no longer permit it, whichever occurs earlier. 9. Compliance with the City Code, including but not limited to outdoor storage and display. 10. The Interim Use Permit may be revoked if the perrnittee does not comply with the terms of conditions #2 through #9 above. ADOPTED this 14th day of April, 2011. Pamela J. Gackstetter, City Clerk 2 map • REAS, pursuant to Minnesota Statutes 462.357 the City of Apple Valley has adopted, as Appendix A of the City Code of Ordinances, zoning regulations to control land uses throughout the City, and 1 REAS, said regulations provide that an outdoor garden center may be allowed within the confines of zone 2 of "PD-679" zoning district and in accordance with specific performance standards, as a conditional use, and 1 ,REAS, approval of a Conditional Use Permit for an outdoor garden center has been requested by Home Depot, and CITY OF APPLE VALLEY RESOLUTION NO. 2002-23 A RESOLUTION APPROVING A CONDITIONAL USE PERMIT FOR THE HOME DEPOT OUTDOOR G P EN CENTER ATTAC 1 G CONDITIONS THERETO 1 REAS, review of such Conditional Use Permit request to determine its conformance with the applicable regulations and performance standards has occurred at a public hearing held on February 6, 2002, and REAS, the Apple Valley Planning Commission recommended approval of such Conditional Use Permit subject to certain conditions on February 6, 2002. NOW, 1 REFORE, BE IT RESOLVED by the City Council of the City of Apple Valley, Dakota County, Minnesota, that a Conditional Use Permit for an outdoor garden center within a "Planned Development 679/zone 2" be approved subject to the following conditions: 1. The Conditional Use Permit shall apply to property legally described as Lot 6, Block 1, Hillcrest Acres (according to the preliminary plat). 2. Such operations shall be conducted in conformance with the site plan dated December 12, 2001, on file at the City Offices. 3. Such operations shall be conducted in conformance with the site plan dated December 12, 2001, on file at the City Offices. 4, Only goods and products related to gardening and/or landscaping, including Christmas trees, wreaths and garland, shall be allowed to be displayed in the outdoor garden center. 5. Such operations shall be conducted in a manner whereby the products displayed for sale are kept in neat, organized rows and the premises are kept free of trash and other debris. 1 ATTEST: 6. No outdoor public address (P.A.) system shall be allowed. 7. The Conditional Use Permit may be revoked for cause if the terms of (2), (3), (4), (5) or (6) preceding are not adhered to ADOPTED this 14th day of February, 2002. Mary E. elier, City Clerk CERTIFICATE 1, the undersigned, being the duly qualified and acting City Clerk of the City of Apple Valley, Dakota County, Minnesota, hereby certify that the foregoing is a true and correct copy of City of Apple Valley Resolution No. 2002-23, adopted by the City Council on February 14th, 2002, the original of which is in my possession. (SEAL) WITNESS my hand officially as City Clerk this • day of 2 Mary E. Mueller, City Clerk map FOR 10 CITY OF APPLE VALLEY RESOLUTION NO. 2002-24 A RESOLUTION APPROVING A CONDITIONAL USE PE HO 1 DEPOT TEMPO Y OUTDOOR DISPLAY ATTAC 11 0 CONDITIONS THERETO SALES 1 A. I REAS, pursuant to Minnesota Statutes 462.357 the City of Apple Valley has adopted, as Appendix A of the City Code of Ordinances, zoning regulations to control land uses throughout the City, and REAS, said regulations provide that an outdoor garden center may be allowed within the confines of zone 2 of "PD-679" zoning district and in accordance with specific performance standards, as a conditional use, and WHEREAS, approval of a Conditional Use Permit for a temporary outdoor display and sales area has been requested by Home Depot, and 1 REAS, review of such Conditional Use Permit request to determine its conformance with the applicable regulations and performance standards has occurred at a public hearing held on February 6, 2002, and REAS, the Apple Valley Planning Commission recommended approval of such Conditional Use Permit subject to certain conditions on February 6, 2002. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Apple Valley, Dakota County, Minnesota, that a Conditional Use Permit for a temporary outdoor display and sales area within a "Planned Development 679/zone 2" be approved subject to the following conditions: 1. The Conditional Use Permit shall apply to property legally described as Lot 6, Block 1, Hillcrest Acres (according to the preliminary plat). 2. Such operations shall be conducted in conformance with the site plan dated December 12, 2001, on file at the City Offices. 3. Such operations shall be conducted in conformance with the site plan dated December 12, 2001, on file at the City Offices; subject to the revision that shows an unobstructed path for pedestrians, a minimum of four (4) feet from the north parking lot curb to the temporary outdoor display and sale s area. 4. Temporary wrought iron fencing, similar to the garden center's fencing, shall be installed to delineate the temporary outdoor display and sales area. • 1 ATTEST: (SEAL) 5. Only live plant materials shall be allowed to be displayed in the temporary outdoor display and sales area. No bagged goods shall be displayed. 6. The temporary outdoor display and sales area shall be secured after business hours by means of the wrought iron fencing or all plant material shall be brought into the building or garden center. 7. The use of the temporary outdoor display and sates area shall be allowed from April 15 to June 15 and August 15 to October 1 of each year. 8. Such operations shall be conducted in a manner whereby the products displayed for sale are kept in neat, organized rows and the premises are kept free of trash and other debris. No pallets shall be used for display purposes. 9. No outdoor public address (P.A.) system shall be allowed. 10. The Conditional Use Permit may be revoked for cause if the terms of (2), (3), (4), (5), (6), (7), (8), or (9) preceding are not adhered to ADOPTED this 14th day of February, 2002. Mary E. i vr elfer, City Clerk CERTIFICATE • ma 3 1, the undersigned, being the duly qualified and acting City Clerk of the City of Apple Valley, Dakota County, Minnesota, hereby certify that the foregoing is a true and correct copy of City of Apple Valley Resolution No. 2002-24, adopted by the City Council on February 14th, 2002, the original of which is in my possession. WI SS my hand officially as City Clerk this day of oland, Mayor Mary E. Mueller, City Clerk •■• rt v, 1 ' 1 r ilrii , r7r,s•m : Tt,1111174 , 7157747M, • t nj ,t.aa if g.1 A IliTif 1,11.4 • 2. CITY OF APPLE VALLEY RESOLUTION NO. 2004-208 RESOLUTION APPROVING AMENDMENT TO CONDITIONAL USE PERMIT FOR HOME DEPOT OUTDOOR GARDEN CENTER AND ATTACHING CONDITIONS WHEREAS, pursuant to Minnesota Statutes 462.357 the City of Apple Valley has adopted, as Title XV of the City Code of Ordinances, zoning regulations to control land uses throughout the City, and WHEREAS, said regulations provide that an outdoor garden center may be allowed within the confines of a zone 2 of Planned Development No. 679 zoning district and in accordance with specific performance standards, as a conditional use, and WHEREAS, approval of a Conditional Use Permit for outdoor garden center for the Home Depot building materials sales store was approved by the Apple Valley City Council on February 14, 2002, by its Resolution No. 2002-23, and WHEREAS, approval of an amendment to the approved Conditional Use Permit for outdoor garden center to allow for propane tank display and sales of was requested by Home Depot, and WHEREAS, review of the amendment to the approved Conditional Use Permit request to determine its conformance with the applicable regulations and performance standards has occurred at a public hearing held on August 18, 2004, and WHEREAS, the Apple Valley Planning Commission recommended approval of the amendment to the approved Conditional Use Permit subject to certain conditions on October 6, 2004. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Apple Valley, Dakota County, Minnesota, that an amendment to the approved Conditional Use Permit for outdoor garden center to allow for propane tank display and sales within zone 2 of Planned Development No. 679 zoning district be approved subject to the following conditions: 1. The Conditional Use Permit shall apply to property legally described as Lot 6, Block 1, Hillcrest Acres. Such operations shall be conducted in conformance with the site plan dated October 9, 2004 on file at the City Offices. 3. Such operations shall be conducted in conformance with the City of Apple Valley Resolution No. 2002-23 on file at the City Offices. 4. A maximum floor area of 100 square feet shall be devoted to propane tank display and storage within the outdoor garden center. ATTEST: 67L Mary E. (SEAL) 5. All propane tanks shall be stored in locked steel-meshed cages that will be suitably anchored to the floor. 6. All propane tanks sales or exchanges shall be performed by a Home Depot staff person and shall be conducted in the outdoor garden center area. 7. "No Smoking" signage shall be properly installed to the satisfaction of the Apple Valley Fire Marshal. 8. "No Propane Tanks Allowed in Building/All Propane Tank Sales and Exchange in Outdoor Garden Center Only" signage shall be installed at all customer entrances. 9. The City shall be informed of management changes within 15 days of such change to provide an opportunity to review conditions with the new manager to ensure ongoing compliance. W. The Conditional Use Permit may be revoked for cause if the terms of (2) or (3) or (4) or (5) or (6) or (7) or (8) or (9) preceding are not adhered to. ADOPTED this 14th day of October, 2004. elier, City Clerk CERTIFICATE 2 I, the undersigned, being the duly qualified and acting City Clerk of the City of Apple Valley, Dakota County, Minnesota, hereby certify that the foregoing is a true and correct copy of City of Apple Valley Resolution No. 2004-208 adopted by the City Council on October 14th, 2004, the original of which is in my possession. WITNESS my hand officially as City Clerk this day of Mary E. Mueller City Clerk CITY OF APPLE VALLEY. RESOLUTION NO. 2004-209 RESOLUTION APPROVING AMENDMENT TO A CONDITIONAL USE PERMIT FOR HOME DEPOT TEMPORARY OUTDOOR DISPLAY AND SALES AREA AND ATTACHING CONDITIONS THERETO WHEREAS, pursuant to Minnesota Statutes 462.357 the City of Apple Valley has adopted, as Title XV of the City Code of Ordinances, zoning regulations to control land uses throughout the City, and WHEREAS, said regulations provide that an outdoor garden center may be allowed within the confines of a zone 2 of Planned Development No. 679 zoning district and in accordance with specific performance standards, as a conditional use, and WHEREAS, approval of a Conditional Use Permit for a temporary outdoor display and sales area for the Home Depot building materials sales store was approved by the Apple Valley City Council on February 14, 2002, by its Resolution No. 2002-24, and WHEREAS, condition no. 6 of the approved Conditional Use Permit for a temporary outdoor display and sales area allowed for the use of the temporary outdoor display and sales area from April 15 to June 15 and August 15 to October 1 of each year, and WFIEREAS, approval of an amendment to the approved Conditional Use Permit for a temporary outdoor display and sales area to change the time allowed for the use of the temporary . outdoor display and sales area to April 15 through August 1 of each year of was requested by Horne Depot, and WHEREAS, review of the amendment to the approved Conditional Use Permit request to determine its conformance with the applicable regulations and performance standards has occurred at a public hearing held on August 1 8, 2004, and WHEREAS, the Apple Valley Planning Commission recommended approval of the amendment to the approved Conditional Use Permit subject to certain conditions on October 6, 2004. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Apple Valley, Dakota County, Minnesota, that an amendment to the approved Conditional Use Permit for a temporary outdoor display and sales area to change the time allowed for the use of the temporary outdoor display and sales area from April 15 to June 15 and August 15 to October 1 to April 15 through August 1 of each year within zone 2 of Planned Development No. 679 zoning district be approved subject to the following conditions: • 1. The Conditional Use Permit shall apply to property legally described as Lot 6, Block 1, Hillcrest Acres. ATTEST: 2. Such operations shall be conducted in conformance with the site plan dated December 12, 2001, on file at the City Offices. 3. Such operations shall be conducted in conformance with the City of Apple Valley Resolution No. 2002-24 on file at the City Offices. 4. The City shall be informed of management changes within 15 days of such change to provide an opportunity to review conditions with the new manager to ensure ongoing compliance. 5. The Conditional Use Permit may be revoked for cause if the terms of (2) or (3) or (4) preceding are not adhered to. ADOPTED this 14th day of October, 2004. eller, City Clerk CERTIFICATE WITNESS my hand officially as City Clerk this day of (SEAL) 2 .1, the undersigned, being the duly qualified and acting City Clerk of the City of Apple Valley, Dakota County, Minnesota, hereby certify that the foregoing is a true and correct copy of City of Apple Valley Resolution No. 2004-209, adopted by the City Council on October 14th, 2004, the original of which is in my possession. Mary E. Mueller, City Clerk 4hd:._�-- 'A�YY�`a - - �J .Mai �� • ro� +h'Yr�h IS YF I- um..w- •--- �- -� +")A�4h .e..d+�/ mge 711 FIJGHT WAY STg coin* • r ia tz COMP PLAN MAP 151stSTW 0-54 5 3 tstt,fl",,. ,�'•+n s s tr Y t#, �,#sx jug qs s �Y' rte }^- ��r '# � #� sr sr�,. �.,t �..p� {sz�z+n#' {{ t3 3 ,.�JxJ �'u }#rte+ • #r'�z t r � � t3, t �� .< fit 3� S � }t�iL3� #�� 3#ss"3'^�' S' S 3 �,}�M'3'Y�� ,: z•• r �`t $ '� � �zv #'�Cx��> ##s m r, +� ss,.'3 �# t #s sl s�.z' s3s�s }S�^£�•� # ¢a�'�'�s�t��'ss�'#��.'�'r��^C t.��e • �'3 s���� }, s#?sz^'r� #x� t�#s�,�� �`s t s �,'3�q�j K s# •� ' �, ys�J�'h�y # zz �sz��.,�r s#�,s s ttt#t�.,� N� �• ssN^^,s{�,�� � "� s . �#�,JSS t �, �� s , # tt � #t r n., #s�.##z#s;' z}�� > �,t K£ z a r sst ,z s ! r � 3 �� F��# s,•# s �'� � � } i t a 4 I I I . 1 7; pinom; '! � Er' pr 0 U _ a) Q) O vi -0 1 ( = U 4, C 73 a-+ ® o C CU 'R . C. n7 :0 a) 3 c ra a) O. .2 0 U OD V ( 40 0. a) to .O Q C L . ® y ,. _ F. 0 -0 t CO +� a 1:2. C > E u 0 e� .� CO ■ N E e1 E c eV 0 N e- I o �► N i N 0 RI t OD > c C 1:3 d co . ni C 0 0 o at . cn vi m a C i © f° c C o. N 4- 3 do ad E 3 ° L c ° W 73 C in o -Y W a. E U a) � w a) 4 ., N N .k3"9.` *� �r13°,b :411a `c � "`.a ry 0 7 — P pox .7777' C ..M rY y .;yK Ell X 6 37 %n „',1 % ✓yyptcrvj�1Por ��u fcK' MM�YT•�! ^) yrfSY.a. City of App Valley MEMO Community Development Department TO: Planning Commission Chair and Commissioners FROM: Thomas J. Lovelace, City Planner DATE: February 15, 2013 SUBJECT: Public Hearing for Proposed Amendments to Menu Board Section of the City's Sign Regulations CASE NO.: PC13-08-0 AGENDA ITEM NO.: 5C Section 154.05(J) of the City of Apple Valley Sign Regulations City list the following conditions for granting a sign permit for menu boards: (1) A maximum of one menu board shall be permitted on a parcel of land with a restaurant providing drive-up window service. (2) The menu board shall be a maximum of 50 square feet in area and may be in addition to any other signs permitted by this chapter. The menu board shall be single-sided and oriented in such a manner so that the signs provide information to the patrons using the drive-through facility only, and do not provide supplemental advertising to pass-by traffic. (4) The menu board signage shall be completely enclosed within one sign area. (5) Order confirmation signage no greater than one square foot and incorporated into the drive-through speaker pedestal shall not be calculated as part of the menu board signage area. Order confirmation signage greater than one square foot shall be incorporated into menu board and calculated as part of said board's sign area. ( The Planning Commission is asked to consider amending conditions 1 and 2 of menu board section of the sign ordinance to read as follows: (1) Restaurants providing drive-up window service shall be permitted one menu board per drive-through lane up to a maximum to two menu boards (2) The menu board shall be a maximum of 36 square feet in area and may be in addition to any other signs permitted by this chapter. Staff has reviewed sign code regulations of our neighboring communities as well others in the metro area, and these proposed amendments would be generally consistent with those communities. Also, the proposed changes would accommodate the design standards that the restaurant industry has established with the inclusion of two drive-through lanes for a restaurant with drive-up window service. Staff Recommendation: Open the public hearing, take comments, and close the public hearing. If there comments the night of the public hearing, staff is recommending that Section 154.05(J)(1)(2) be amended to read as follows: (1) Restaurants providing drive-up window service shall be permitted one menu board per drive-through lane up to a maximum to two menu boards (2) The menu board shall be a maximum of 36 square feet in area and may be in addition to any other signs permitted by this chapter. APPLE VALEY SIGN CODE EXCERPT § 154.04 SIGNS REQUIRING A PERMIT. The following signs may be erected or maintained, as shown for each zoning district or land use, only after obtaining a permit from the city and payment of permit fees, providing the standards and restrictions in this section are met. (J) Menu boards. Menu boards subject to the following conditions: ( A maximum of one menu board shall: Permitted on a parcel of land with a restaurant providing drive-up window service. (2) The menu board shall be a maximum of 50 square feet in area arid may be in addition to any other signs permitted by this chapter. (3) The menu board shall be single-sided and oriented in such a manner so that the signs provide information to the patrons using the drive-through facility only, and do not provide supplemental advertising to pass-by traffic. (4) The menu board signage shall be completely enclosed within one sign area. (5) Order confirmation signage no greater than one square foot and incorporated into the drive- through speaker pedestal shall not be calculated as part of the menu board signage area. Order confirmation signage greater than one square foot shall be incorporated into menu board and calculated as part of said board's sign area. SIGN CODE EXCERPTS FROM VARIOUS METROPOLITAN COMMUNITIES CITY OF BLOOMINGTON The City Council finds that menu board signage for restaurants present unique communication needs and concerns. Therefore, the following standards apply to menu boards. (a) Number and Dimensions. (1) Primary Menu Board. One primary menu board not to exceed 36 square feet in sign area and not to exceed eight feet in height is allowed per order station up to a maximum of two primary menu boards. (2) Secondary Menu Board. One secondary menu board not to exceed 15 square feet in sign area and not to exceed six feet in height is allowed. ( Primary and secondary menu boards are allowed in addition to other permitted signs on site. No additional signage may be attached to primary and secondary menu boards that exceed the permitted area or height for the respective primary or secondary menu board. CITY OF BU SVILLE Signs accessory to drive-through service lanes are permitted in addition as allowed wall signs or freestanding signs provided the following conditions are met: 1. One sign is allowed per approved drive-through service lane. 2. No sign shall exceed thirty two (32) square feet in area. 3. No sign shall exceed eight feet (8') in height. 4. Signs with speakers or intercoms shall be designed and located in a manner to direct noise away from adjoining properties. (Ord. 1247, 9-20-2011) CITY OF EDEN P . , IRIE Menu Board Sign. One menu board sign per restaurant use with a drive-thru facility. Such sign shall not exceed 32 square feet in size nor greater than eight feet in height. Such sign is in addition to the free-standing or wall sign in the District. CITY OF LAKEVILLE Menu Signs: In addition to the freestanding sign allowed by chapter 23 of this title, convenience food uses may display menu signs related to drive-through facilities, provided that: (1) Not more than two (2) menu signs per drive-through lane are allowed. (2) The menu sign(s) shall be single sided with an area not to exceed fifty (50) square feet. ( The height of the menu sign(s) shall not exceed eight feet (8') including its base or pole measured from grade to the top of the structure. (4) The menu sign(s) shall not encroach into any principal building setback and shall be located directly adjacent to the drive-through aisle and oriented in such a manner so that the sign provides information to the drive-through patrons only and does not provide supplemental advertising to pass-by traffic and does not impair site visibility or obstruct circulation. CITY OF ROSEMOUNT In addition to the freestanding sign allowed by the sign ordinance, fast food uses may display menu signs related to drive-through facilities, provided that: a. Not more than one menu sign per defined drive-through aisle is allowed. b. Individual menu signs shall be single sided with an area not to exceed thirty two (32) square feet including both menu information and sign cabinet. c. The height of the menu sign(s) shall not exceed eight feet (8') including its base or pole measured from grade to the top of the structure. d. The menu sign(s) shall not encroach into any parking setback and shall be located directly adjacent to the drive-through aisle and oriented in such a manner that the sign provides information to the drive-through patrons only and does not provide supplemental advertising to pass-by traffic and does not impair visibility or obstruct circulation. Menu/order board signs. CITY OF WOODBURY (a) Number. Every business with a drive-through restaurant facility is allowed two menu/order board signs. (b) Area. The area of each sign shall not exceed 50 square feet. (c) Height. The height of the sign including the pole or base shall not exceed six feet from grade to the top of the sign. (d) Location. (1) All portions of the sign shall be at least 15 feet from the property line. (2) The sign shall be located adjacent to the drive-through aisle. ( The sign shall not be located as to impair the vision of the driver of a vehicle traveling either into, out of, or through the drive-through aisle. AGENDA ITEM NO.: 7A CITY OF Apple Valley TO: Planning Commission Chair and Commissioners FROM: Thomas J. Lovelace, City Planner DATE: February 15, 2013 CASE NO.: PC13 -12 -Z MEMO Planning and Development Department SUBJECT: Public Hearing for Amendments to Article 28, Appendix F of Chapter 155 of the Apple Valley City Code (Planned Development Ordinance No. 703) Related to Driveways in the Cobblestone Lake Development. The City Council, at their February 14, 2013, adopted a resolution to direct staff to set a public hearing for the March 20, 2013, Planning Commission meeting for the purpose of considering zoning ordinance amendments to Planned Development No. 703. The proposed ordinance amendments address two requirements for driveways in the planned development. The planned development ordinance currently prohibits driveways coming off of streets with raised center medians and restricts the width of a driveway within the road right -of -way to a maximum of 14 feet. Staff is proposing that consideration should be given to possible amendments that would allow driveways to come off streets with raised medians and to increase the maximum driveway width within the right -of -way. These proposed zoning amendments have arisen due to two issues. The first issue relates to a single - family lot located at the northeast corner of 158 Street West and Cobblestone Lake Parkway. The property is the former site of the development's sales office. The sales office, which is located in the southeast corner of the lot adjacent to 158 Street West was approved as a temporary use and was expected to be converted to a detached garage at the time of construction of a dwelling unit on the lot. The sales office had a small surface lot with driveway access off both Cobblestone Lake Parkway and 158 Street West, which has a landscaped median from Diamond Path to Cobblestone Lake Parkway. The driveway along 158 Street West was expected to be temporary and would be removed after the sales office ceased operations and a dwelling unit was constructed on the property. The lot is currently for sale and it has come to our attention that because of the likely orientation of the dwelling unit to Cobblestone Lake Parkway and with primary driveway access off that street, it may be difficult to utilize the former sales office as a garage without having direct driveway access to 158 Street West. The second issue relates to maximum driveway width within the right-of-way, which is currently 14 feet. The intention of this requirement was to lessen the visual impact of driveways along a street and incrementally increase the amount of available on-street parking, which due to the reduced street widths, is generally restricted to one side of public local streets in most of the residential areas of the development. Also, many certificates of survey that the City has received in the Cobblestone Lake development as part of building permit applications for single—family dwelling show a 16-foot wide driveway within the right-of-way. Staff will present possible amendments for consideration the night of the public hearing. Any proposed changes would not impact driveway widths on the portion of a lot outside of the right- of-way, which is subject to the requirements set forth in off-street parking design and maintenance section of the zoning ordinance. PLANNED DEVELOPMENT NO. 703 - ZONING 0 § A28-5 MINIMUM AREA STANDA (C) Residential Site Design: The following design elements shall be incorporated into Zone 1 of the planned development to assure an overall sense of harmony. (1) Residential areas shall be designed to emphasize human scale which shall include: (a) Sidewalks shall be installed along all public and private streets. If deemed appropriate by the city council, a separate pedestrian circulation plan may be substituted. (b) Local residential streets shall be designed narrow enough to discourage speeding, but wide enough to allow for on-street parking along one side. Local streets shall have a minimum right-of-way width of 52 feet and a paved driving surface width of 26 feet. (c) The "entry street," with access from Diamond Path, shall have a minimum right- of-way width of 87 feet and two paved driving surfaces 20 feet wide that will be separated by a 15-foot wide center median. (d) Enhancement of the pedestrian- friendly environment by minimizing the presence or appearance of garages whenever possible. (2) Driveways serving structures adjacent to streets with raised center medians 0 - 0 shall be prolitlialted. ( II 1 II II S AND REQUIREMENTS. INANCE EXCERPT The inaximum driveway width within the street right-of-way shall be 14 feet. (4) No dwelling unit shall be set back more than 25 feet from the front property line. (D) Building Design and Materials: The following design elements shall be incorporated into all site plans for buildings: (1) The main entrance to the primary dwelling unit shall face the street. (2) Entry features of all primary dwellings shall incorporate a front entry porch or stoop that shall be constructed in a manner that is harmonious with the primary dwelling. (3) All accessory structures shall incorporate the architectural design and exterior finish of the primary structure. (4) A building or group of buildings shall maintain a compatible relationship with the surrounding context of an area in regard to: City of Apple 11 TO: Planning Commission Members FROM: Margaret M. Dykes, Planner MEETING DATE: February 20, 2013 SUBJECT: Hanson Concrete Site Development Strategy The study is now complete and the consultant's findings are as follows: 1 S:\planning\2010 LCDA Applications\Hanson\McComb Report\PC memo 022013.docx MEMO Community Development Department In December 2010, the City received a $50,000 pre-development grant from the Metropolitan Council to hire a consultant to examine the market mix and economic feasibility of potential future users of the 80- acre Hanson Concrete site, northwest of the intersection of Johnny Cake Ridge Road and County Road 42. In 2010, the Hanson Concrete plant closed because the owner determined that it was no longer a viable operation. The property was put on the market, and recently the south 50 acres was sold to Menards. They have cleared the plant and all inventory from the site. A remaining north 30 acres remains available for purchase at this time. The 2030 Comprehensive Plan designates the site as "IND" (Industrial), and the property is zoned "I-2" (General Industrial). While the City continues to support industrial users on the property, it requested funds for the study to determine how the site could be intensified for high job-generating industrial rather than low job-generating users such as the former concrete plant. In 2011, the City retained the McComb Group, Ltd. (the "consultant") to complete the study. Specific objectives for the study included: • Increasing the mix and density of future industrial uses on the 80-acre site by a large user or multiple users capable of generating head-of-household jobs. • Identify future uses consistent with the 2030 Comprehensive Plan designated for high-job generating industrial uses that are compatible with surrounding industrial and business park uses. • Create a future plan based on an assessment of current market conditions, emerging new industrial segments, and other potential uses. • The Hanson property is one of the largest vacant properties offered for sale in Dakota County. The site has good access, but is not attractive to businesses with high truck volume due to the distance from freeways. • Because of surrounding retail, residential, parks, and schools, the site is no longer suited for heavy industrial uses. • There are many competing business parks in Dakota County with substantial vacant space to accommodate tenants seeking multi-tenant buildings. This may reduce demand for the creation of another business park on the Hanson property. • The medical office market continues to be strong, and aligns with Apple Valley's employment base. • Other key industries that align with Apple Valley's employment base include Bio Tech, Professional Services (insurance, software, financial business), Advanced Manufacturing, and Research & Development Centers. • There are approximately 27,000 employed residents in Apple Valley, but roughly 24,000 of them leave the City every day to work elsewhere in the Metro. Only 3,000 Apple Valley residents are actually employed in Apple Valley. Approximately 10,000 people from outside the City are employed in Apple Valley. • Apple Valley has a higher proportion of lower paying jobs than Dakota County, and more employees based in lower paying services jobs. The City should encourage industries with higher paying jobs on vacant properties, such as Hanson. • Encouraging development of the Hanson Site will need to take into consideration the new realities of business park development. Apple Valley must develop a marketing plan that attracts attention and stands out in the crowded development field. • Strategies that can be employed to encourage proper development by working with the current property owners could include: o Unified marketing effort directed at targeted business groups. • Assisting in planning the mixed-use development and dividing the site into development parcels within the site that could be sold to users and developers. • Place higher value, possibly multi-story buildings on 150th Street and one-story buildings on the north portion of the site. • Offer incentives for the targeted uses that could include tax increment financing, tax abatement, and special assessment districts. • Seek to encourage public/private partnerships with utility companies and other companies to reduce cost of occupancy in Apple Valley. Recommended Action: If the Planning Commission concurs, staff is recommending the following motion: • Accept receipt of the report entitled Hanson Concrete Development Strategy and acknowledge that the report may be used to generate future land use decisions and policies. Please Note: Due to its length, the report will be distributed to the Planning Commission and City Council only. A copy of the report is available for review in the Planning Department. If you would like a copy of the report, please contact Margaret Dykes at mdykes@ci.apple-valley.mn.us 2 S:\planning\2010 LCDA Applications\Hanson\McComb Report\PC memo 022013.docx w" o^Y f n Yj. ' 'S�ti �:< ?�a -�' .tii. - .. ,, .yr,•r.;ysy. •. . J r nn, HANSON CONCRETE SITE DEVELOPMENT ST TEGY Prepared for The City of Apple Valley and the Apple Valley EDA Prepared by McComb Group, Ltd. Economic Development Services, Inc. Grubb & E11isiNorthco Real Estate Services August 2012 © Copyright 2012 McComb Group, Ltd. Chapter TABLE OF CONTENTS Subject Page EXECUTIVESUMMARY •••••• OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO ••••••••••••••••• OOOOOOOOOOOOOOO •••••••••v Competitive Business Parks Multi-Tenant Office Buildings Multi-Tenant Office Showroom vi Multi-Tenant Office Warehouse vi Medical Office Buildings vii Vacant Land vii Broker Interviews vii Economic Base viii Employment ix Future Employment Marketing and Development Strategy xi INTRODUCTION-- OOOOO ••••••••••••• OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO •••••••••• OOOOOOOOOOOOOOOOO ..xv Report Purpose xvi HANSON CONCRETE SITE OOOOOOOOOOO OOOOO ............ OOOOO OOOOOOOOOOOOOOOOOOOOOOOOOOO ........... 1-1 Site Environs 1-1 Access 1-2 Utilities 1-4 Zoning 1-4 COMPETITIVE BUSINESS PARKS 2-1 Multi-Tenant Office Buildings 2-1 Proposed Multi-Tenant Office Buildings 2-4 Multi-Tenant Office Showroom 2-5 Multi-Tenant Office Warehouse 2-7 Multi-Tenant Bulk Warehouse 2-10 Vacant Land 2-13 Medical Office Buildings 2-15 Apple Valley Medical Office Buildings 2-16 Multi-Tenant Medical Office Buildings 2-16 Proposed Multi-Tenant Medical Office Space 2-18 EMPLOYMENT AND ECONOMIC BASE 3-1 Employment by Industry 3-1 2007 Census of Business 3-4 Employment Profile 3-5 Employment Inflow and Outflow 3-6 Chapter Subject Page Demographic Characteristics 3-7 Work Location 3 -9 Residence Location 3 -9 Educational Attainment 3-10 Job Creation 3 11 Future Employment 3-13 Health Care 3 - 15 IV BROKER INTERVIEWS 4-1 V DEVELOPMENT STRATEGY RECOMMENDATIONS 5-1 Marketing and Development Strategy 5-2 APPENDIX A TABLE OF CONTENTS (continued) LIST OF TABLES Table Title Page i Change in Occupied Space: 2007 to 2011 and 2011 Vacancy Rate vi 1-1 Traffic Counts on Routes to Hanson Concrete; 2010 1-3 2-1 Change in Occupied Space: 2007 to 2011 and 2011 Vacancy Rate 2-1 2-2 Multi-Tenant Office Space: Total, Occupied, and Vacant Space; 2007 to 2011 2-2 2-3 Multi-Tenant Office Buildings Net Rent, Expenses, and Taxes by Class 2-3 2-4 Proposed Multi-Tenant Office Buildings 2-4 2-5 Multi-Tenant Office Showroom: Total, Occupied, and Vacant Space; 2007 to 2011 2-5 2-6 Multi-Tenant Office Showroom Buildings Net Rent, Expenses, and Taxes 2-7 2-7 Multi-Tenant Office Warehouse: Total, Occupied, and Vacant Space; 2007 to 2011 2-8 2-8 Multi-Tenant Office Warehouse Buildings Net Rent, Expenses, and Taxes 2-9 2-9 Multi-Tenant Bulk Warehouse: Total, Occupied, and Vacant Space; 2007 to 2011 2-11 2-10 Bulk Warehouse Buildings Net Rent, Expenses, and Taxes 2-12 2-11 Vacant Land: Apple Valley and Competitive Cities 2-14 2-12 Apple Valley Medical Office Buildings 2-16 2-13 Multi-Tenant Medical Office: Total, Occupied, and Vacant Space; 2007 to 2011 2-16 2-14 Multi-Tenant Medical Office Buildings 2-17 2-15 Proposed Multi-Tenant Medical Office Buildings 2-18 3-1 Employment by Industry; 2010: Apple Valley, Dakota County, and MSA 3-4 3-2 Apple Valley Establishments, Sales, Payroll, and Employees; 2007 Census of Business 3-5 3-3 Worker Profile: Age and Earnings; 2010 Apple Valley, Dakota County, and MSA 3-6 3-4 Labor Inflow and Outflow; 2009 Apple Valley and Dakota County 3-6 3-5 Labor Inflow and Outflow; 2009 Apple Valley and Dakota County by Age, Income, and Industry 3-8 3-6 Work Location of Apple Valley and Dakota County Residents; 2009 Top Ten Communities 3-9 3-7 Residence Location of Apple Valley and Dakota County Employees; 2009 Top Nine Communities 3-10 LIST OF TABLES (continued) Table Title Page 3-8 Employment Change and Job Creation Selected Industries: 2000 to 2007 and 2008 to 2010 3-11 3-9 Employment Change and Job Creation Health Care: 2000 to 2007 and 2008 to 2010 3-12 3-10 Employment Outlook; 2009 to 2019 Seven-County Minneapolis-St. Paul, MN 3-13 3-11 Employment Outlook; 2009 to 2019 Seven-County Minneapolis-St. Paul, MN 3-14 3-12 Health Care: Employment Outlook; 2009 to 2019 Seven-County Minneapolis-St. Paul, MN 3-15 LIST OF MAPS Map Title Page 1-1 Highway System Serving Apple Valley 1-2 2-1 Multi-Tenant Office Buildings 2-2 2-2 Multi-Tenant Office Showroom Buildings 2-6 2-3 Multi-Tenant Office Warehouse Buildings 2-9 2-4 Multi-Tenant Bulk Warehouse Buildings 2-11 2-5 Vacant Industrial and Business Park Land For Sale 2-13 2-6 Medical Office Buildings 2-15 LIST OF FIGURES Figure Title Page 1-1 Hanson Site and Environs 1-1 3-1 Employment Site, Growth and Concentration for the Top Ten Industries According to Employment Concentration, Twin Cities 3-1 3-2 Employment Size, Growth and Concentration for the Top Ten Industries According to Size, Dakota County — 2005-2010 3-2 3-3 Employment Size, Concentration and Wages for the Top Ten Industries According to Size, Dakota County 2010 3-3 3-4 Educational Attainment; 2011 3-10 iv EXECUTIVE SUMMARY The former Hanson Concrete Plant (Hanson Site) occupies an 80-acre site in Apple Valley. The property has been split into one 20-acre parcel north of 147 Street West and one 60-acre parcel south of 147 Street West. The site is zoned industrial, consistent with its former use for manufacturing concrete products. Now that the concrete plant has been decommissioned, the site should be rezoned to accommodate development that is more compatible with market demand and other nearby uses. The property to the south is guided Mixed Business Campus, which would be appropriate for the Hanson Site. Competitive Business Parks Apple Valley competes with other communities in Dakota County for office and business park development. Major business park building types include: office, office showroom, office warehouse, and bulk warehouse. Market conditions for these buildings have been weak since the great recession began in 2007. Changes in occupied space between 2007 and 2011, and 2011 vacancy rates are summarized in Table i. Apple Valley has experienced negative absorption in the office and office showroom categories; while office warehouse occupancy increased modestly. Vacancy rates are well above normal for all categories except office showroom. In the competitive cities, absorption has been negative except for office space. Office warehouse and bulk warehouse have been particularly weak. Vacancy rates are also well above normal. Absorption trends and vacancy rates are similar in the Southeast Market Area also. These market conditions indicate there is substantial vacant space to accommodate those tenants seeking space in multi-tenant buildings in Dakota County. Table i CHANGE IN OCCUPIED SPACE: 2007 TO 2011 AND 2011 VACANCY RATE (Square Feet) Apple Valley Competitive Cities Southeast Market Area Amount Vacant Amount Vacant Amount Vacant Office (9,548) 24.1 % 99,532 22.5 % 21,348 18.8 % Office Showroom (3,752) 5.0 (80,783) 27.9 (37,164) 23.2 Office Warehouse 7,564 26.9 (306,523) 17.4 (374,339) 17.3 Bulk Warehouse (448,007) 10.5 (517,390) 10.5 Source: United Properties and McComb Group, Ltd. Multi-Tenant Office Buildings In general, multi-tenant office space has experienced sluggish demand and high vacancy rates over the past five years. Apple Valley has a relatively small amount of multi-tenant office space (368,135 square feet), which hasn't changed since 2007. Occupied multi-tenant office space in Apple Valley fluctuated between 288,860 square feet and 271,987 square feet between 2007 and 2010 and ended the period at 279,312 square feet in 2011. Apple Valley's vacancy rate for multi-tenant space increased from 21.5 percent in 2007 to 24.1 percent in 2011. Occupied office space in competitive cities totaled over 2.0 million square feet in 2007 and increased moderately to 2.1 million square feet in 2011. During this period, the vacancy rate increased from 14.0 percent to 22.5 percent as total space increased by 246,600 square feet. Southeast Market Area communities' occupied space has ranged from 4.5 million square feet in 2007 to 4.7 million square feet in 2008, declined to 4.3 million square feet in 2010, and ended the period at 4.5 million square feet in 2011. During this period, the vacancy rate increased from 13.4 percent in 2007 to 21.6 percent in 2010, before declining to 18.8 percent in 2011. There are seven proposed multi-tenant office buildings with over 940,000 square feet of office space in the Dakota County study area. Eagan developers are most aggressive with four buildings proposed for a total of 564,000 square feet, Mendota Heights has two buildings proposed for a total of 280,000 square feet, and Burnsville has one 100,000 square foot building proposed. Multi-tenant office buildings tend to be located along the major freeway corridors in Dakota County including 1-35, I-35W, I-35E, 1-494, and TH-52. Apple Valley's commercial office buildings are located some distance from these corridors. Multi-Tenant Office Showroom Apple Valley has a limited amount of office showroom space (121,000 square feet), which remained constant between 2007 and 2011. Occupied space has ranged from 98.1 percent in 2007 to 100 percent in 2008 and 2009, 93 percent in 2010, and 95 percent in 2011 indicating a very healthy market. Occupied office showroom space in competitive cities has ranged from over 1.8 million square feet in 2007 to a peak of 2.0 million square feet in 2008, which was followed by a gradual decline to 1.8 million square feet in 2011. During this period, the vacancy rate increased from 11.9 percent to 27.9 percent, indicating weak market conditions. In the Southeast Market Area, occupied space increased from over 2.4 million square feet in 2007 to in excess of 2.6 million square feet in 2008, and then gradually declined to 2.4 million square feet. During this period, the vacancy rate increased from 10.3 percent to 23.2 percent, as almost 700,000 square feet was added to the market. Office showroom buildings are clustered in areas along I-35W, 1-94, TH-52, and CSAH 42 in Apple Valley. Multi-Tenant Office Warehouse Apple Valley multi-tenant office warehouse space totaled 61,594 square feet in 2007 and was fully occupied. Office warehouse space increased by 33,010 square feet to 94,604 square feet in 2008, but occupied space only increased by 10,473 square feet. The vacancy rate has remained high ending the period at 26.9 percent in 2011. Multi-tenant office warehouse space in competitive cities has declined from 6.2 million square feet in 2007 to 5.9 million square feet in 2011. During this period, vacancy increased from 741,000 square feet to over 1.2 million square feet with the vacancy rate increasing from 10.6 percent to 17.4 percent. vi In the Southeast Market Area, occupied office warehouse space decreased from over 6.9 million square feet to 6.6 million square feet; while vacancy increased from 10.7 percent to 17.3 percent. Occupancy in multi-tenant office warehouse buildings has decreased in Apple Valley and in all competitive market areas. Multi-tenant office warehouse buildings tend to cluster along TH-13 in Burnsville and Eagan and in the vicinity of the I-35E/I-94 interchange in Eagan and Mendota Heights. Medical Office Buildings Apple Valley has 13 medical office buildings that total over 220,000 square feet. Most of these are smaller professional buildings under 10,000 square feet in size. Only three buildings are relatively large--Health Partners Medical/Dental, Fairview Cedar Ridge Clinic, and Apple Valley Medical Center, which range in size from 40,000 square feet to 60,000 square feet and represent over 70 percent of the total medical office facilities in Apple Valley. The amount of medical office space in Apple Valley remained unchanged during the period 2007 through 2011. Occupied office space in multi-tenant medical office buildings in competitive cities increased from about 380,000 square feet in 2007 to 412,000 square feet in 2011. During this period, the vacancy rate declined from 13.9 percent to 9.6 percent. In the Southeast Market Area, occupied medical office space increased from about 1.3 million square feet to about 1.4 million square feet in 2011 and the vacancy rate declined from 15.2 percent to 13.3 percent. Medical office is the only category showing positive absorption in both the competitive cities and Southeast Market Area. Vacant Land The Hanson Site, at 80 acres, is one of the largest vacant properties offered for sale in Dakota County. There are three larger parcels--two in Lakeville and one in Farmington--which are not as well located as Apple Valley. In the fall of 2011, there were 128 vacant parcels offered for sale in Dakota County. Eighty-two of these parcels were less than 10 acres in size. Forty-one parcels were larger than 10 acres in size and could accommodate large users that would consider locating on the Hanson Site. In commercial listings, the Hanson Site was offered in two parcels of 60 and 20 acres. The larger parcel has been purchased by Menards. The distribution of vacant land parcels is different than the pattern of office buildings, office showroom, and office warehouse buildings. Most of Apple Valley's vacant land parcels are along CSAH 42 and are more conveniently located than those in competitive cities. Other vacant parcels are located along the TH-52/TH-55 corridor in Inver Grove Heights and Rosemount, and CSAH 50 and 1-35 in Lakeville. Many of these parcels are not as well located as the properties located in Apple Valley. Broker Interviews Nineteen commercial real estate brokers with a history of working within Dakota County were interviewed. Significant comments included: vii • Many respondents, when asked about long-term trends in the market related to Apple Valley and the Hanson Site, suggested a variety of uses ranging from headquarters office, light industrial, and multi-family. However, most respondents suggested light industrial that did not require immediate access to major transportation corridors. • Marketing to manufacturing, high technology, and larger companies has not been successful in the past. • Most respondents refer to Apple Valley as being off the main transportation corridors. • Apple Valley does not have any planned business and industrial parks like most cities. • Users that may find the area attractive in the next 10 to 15 years will be high technology firms as other parts of the Metro Area fill up. Survey respondents felt Apple Valley and the Hanson Site was appropriate for single purpose corporate high tech office uses that were not dependent on convenient truck access. Economic Base Demand for business park development is related to employment growth in those business categories that typically occupy office, office showroom, and office warehouse buildings. In 2007, according to the Census of Business, Apple Valley's employment of 13,714 represented 0.89 percent of the Minneapolis-St. Paul Metropolitan Statistical Area (MSA) employment. Those categories where Apple Valley's employment exceeded the average included Retail Trade (2.22 percent); Educational Services (2.10 percent); Arts, Entertainment, and Recreation (1.82 percent); Accommodation and Food Services (1.47 percent); Other Services excluding Public Administration (0.91 percent); and Public Administration (1.16 percent). Industrial categories where Apple Valley employment was below the Metropolitan Area average and that would be suitable for business park locations include Information (0.47 percent), Finance and Insurance (0.58 percent); Real Estate and Rental and Leasing (0.80 percent); Professional and Technical Services (0.39 percent); Management of Companies and Enterprises (0.06 percent); Administrative (0.23 percent); and Health Care and Social Assistance (0.68 percent). These categories provide ample opportunity for locations in Apple Valley. Apple Valley's business mix results in the City having a higher proportion (35.4 percent) of low income jobs ($1,250 per month or less) than Dakota County (25.0 percent) and the MSA (23.8 percent). As a result, Apple Valley has a smaller proportion (33.5 percent) of employees earning more than $3,333 per month than Dakota County (43.4 percent) and the MSA (46.0 percent). Much of this skewed income distribution is a result of the large number of jobs in retail, service, accommodation, and food service. Apple Valley had 26,849 employed residents in 2009. Those residents living and employed in Apple Valley totaled 3,094; while the remaining City residents (23,755) commuted to work outside Apple Valley. viii Employment in Apple Valley was 13,683 in 2009, with 10,589 of these employees commuting from outside Apple Valley. As indicated previously, Apple Valley residents working within the City totaled 3,094. Apple Valley residents employed in the City: O Tend to be younger and older than those in Dakota County. • Earn less money with 42.4 percent earning $1,250 or less, compared to 28.9 percent in Dakota County. O Have a smaller proportion of employees earning $3,333 per month (27.9 percent) than Dakota County (39.6 percent). O Hold jobs in service industries, 70.9 percent compared to 64.2 percent in Dakota County. • Goods-producing employment in Apple Valley is 3.6 percent compared to 14.3 percent in Dakota County. Apple Valley employers attract workers that live outside Apple Valley or Dakota County. Significant findings about this inflow worker include: O Apple Valley has a higher proportion of lower paid inflow workers than Dakota County. Workers in the $1,250 per month or less category were 33.8 percent compared to 22.7 percent in Dakota County. • Inflow workers with incomes over than $3,333 per month represent only 33.6 percent of the Apple Valley workers compared to 44.8 percent in Dakota County. O Apple Valley has fewer inflow workers employed in goods-producing industries than Dakota County. Almost three-quarters (71.8 percent) of Apple Valley inflow workers are employed in the all other services category compared to 56.2 percent in Dakota County. The truly significant differences are that jobs held by Apple Valley residents and inflow jobs are lower paying and more heavily concentrated in service industries than for Dakota County. This is a reflection of Apple Valley's large number of retail and service establishments. Apple Valley should seek to use its vacant and under developed land areas to encourage industries with higher paying jobs. Apple Valley and the MSA have a similar proportion of residents with graduate degrees (12.8 percent) compared to 10.9 percent nationally. In addition, more Apple Valley residents have bachelors and associates degrees (29.1 percent and 10.3 percent, respectively) than both the MSA and the United States. Employment Changes in employment from year to year can mask employment changes that are occurring within each individual industry category. Minnesota Department of Employment and Economic Development (DEED) prepares a report that keeps track of total employment, net job flows, job creation, new hires, separations, and turn over. What is in the job creation component of this ix database is significant. It identifies the number of employees hired to fill new job positions. This could be a new position in an existing company or employment by a new company. This information, contained in Table 3-8 on page 3-11 of this report, is available for 105 industries. This table indicates that within individual industry categories, the employment change may be negative, but job creation can be positive. Using Computer and Electronic Product Manufacturing from that table as an example, total employment between 2000 and 2007 declined by 217, but 1,272 new jobs were created in Dakota County. In the recessionary period that followed, total employment increased by 92 jobs and 297 new jobs were created. In the MSA, overall job creation was even more dramatic. Between 2000 and 2007, while total employment declined by 7,518 positions, 11,359 new jobs were created. In the period between 2008 and 2010, total employment declined by 6,483, and 4,773 jobs were created. The comparisons are similar for other categories. Health care is an obvious growth industry and is likely to continue to expand. Job creation in this category is closely related to total employment change. In Dakota County, Ambulatory Health Care employment increased by 2,552 between 2000 and 2007, as shown in Table 3-9 on page 3-12 of this report. Job creation represented 1,711 of that employment increase. In the more recent period, total employment change was 372 and job creation was 735. The relationship between employment changes in the MSA is even more dramatic. To the extent job creation is occurring in businesses that are growing or in new companies, this is an opportunity for business relocation or a new business location. Capitalizing on this information requires new approaches to business development to find ways to identify those businesses that are creating jobs. Future Employment Future estimates of employment in the Seven-County Metropolitan Area prepared by DEED indicate that total employment will increase from 1,685,500 employees in 2009 to 1,829,600 jobs in 2019, an increase of about 144,100 jobs, or 8.5 percent. These projections include full- and part-time jobs and not the number of employed persons. This information is the best available to indicate those business categories where employment is expected to increase, generating demand for additional office or manufacturing space. The Goods-Producing Domain is expected to decrease by 3.1 percent; while the Service- Providing Domain is expected to increase by 9.9 percent. Within the Service-Providing Domain, all industry categories except Information are estimated to have increased employment. It is the Service-Providing Domain that provides the greatest opportunity for employment growth in Apple Valley. The full list of business categories that are suitable for Apple Valley are contained in Table 3-11 on page 3-14 of this report. Health care employment is estimated to increase by 20.3 percent between 2009 and 2019. Estimated increases in employment in individual categories range from 11.6 percent to 55.8 percent. The fastest growing categories are Medical and Diagnostic Laboratories, Outpatient Care Centers, Offices of Physicians, Home Health Care Services, and Other Ambulatory Health Care Services, all of which are expected to grow at greater than 30 percent over the 10-year period. Marketing and Development Strategy The 80-acre Hanson Site is over one-half of the available business park land in Apple Valley. There are currently 39 parcels of land 10 acres or larger offered for sale in Dakota County competitive cities. These parcels total 1,225 acres, and the Hanson Site is the 3 largest. Though there are many alternative properties for development in the region, the Hanson Site is well located and suitable for more intensive development that could provide an opportunity for higher income jobs for Apple Valley residents and provide more balance to the City's job market. However, at the present time, there is little to distinguish the Hanson Site from the other parcels. This must be changed if development is likely in the near future. The strategy to encourage development of the Hanson Site will need to take into consideration the new realities of business park development. In the past, Dakota County has enjoyed generally solid growth in its office and business park development. This has changed. It's no longer sufficient to list property with a broker, install a sign, and hope that someone will call. The brokerage community tends to overlook Apple Valley because it does not have an established business park with developable sites. As a result, Apple Valley cannot rely on the usual land marketing procedures of the real estate industry which everyone else is using. Apple Valley must develop a marketing plan that it attracts attention and stands out in the crowded development field. This plan should capitalize on Apple Valley's many strengths including: • Apple Valley's residential lifestyle and attractive neighborhoods to reinforce the "close to home" business location criteria, which is important to many executives. • High level of educational attainment compared to the nation. • High concentration of scientific, technical, and professional service occupations compared to the nation. • Apple Valley's proximity to MSP International Airport (14 miles) and the international destinations served by Delta with direct flights or connections through Amsterdam. • U.S. headquarters of Uponor, the largest supplier of heating and cooling pipe in North America. • Utilize Apple Valley's significant retail presence to expand the presence of health care and medical services, both to individuals and other health care industry participants. Apple Valley needs to take control of marketing messages and implement a consistent marketing and development approach. Much of the available business park land in Apple Valley is in the hands of aggregate producers, which is nearing the end of its life cycle in Apple Valley. The Hanson Site and other aggregate mining parcels total about 300 acres. These owners are not business park developers. xi Aggregate landowners in Maple Grove faced a similar situation. The approach used in Maple Grove involved the landowner forming a development relationship with a capable developer to market the site and take down land as development opportunities arose. This created a monopoly situation where a potential business had to negotiate with the selected developer. In some cases, cities seeking to increase development have purchased land and developed a city sponsored business park. This approach creates an opportunity where any developer can purchase and develop a building with city help. The drawback is that the city has to buy the land and install infrastructure and issue bonds to pay the costs before land can be developed. This places the city in a position of considerable risk. The approach suggested in this report provides a less risky and more open approach. Apple Valley could establish a public/private to take an active role in marketing development opportunities on the Hanson Site and other vacant business park land in the City. This entity could provide general marketing for Apple Valley and be a focal point for development inquiries. The public/private partnership would also provide marketing and development planning services under contract for landowners. The partnership could operate with a limited staff and use subcontractors to provide specialized services such as marketing, advertising, research, local, national and international business recruitment, and other services. Business park property owners would authorize the partnership to market their property and pay a commission and marketing reimbursement fee when a property was sold. Additionally, the partnership could contract for and supervise platting and site design services. The objective is for the partnership to be a one stop development agency for the City and landowners. It would also create an open playing field for developers since it would be a facilitator bringing a potential tenant to Apple Valley and any developer could develop on land represented by it. Any developer or business seeking a site could purchase land from an Apple Valley landowner. This expands the number of developers that could consider Apple Valley as a location. The partnership promotes Apple Valley and its business parks, but does not incur the carrying costs or risk. The city also has the flexibility to use the professional and development resources that are suitable for each development opportunity. Strategies that can be employed to encourage proper development by working with the current property owners could include: • Unified marketing effort directed at targeted business groups. • Assisting in planning the mixed-use development and dividing the site into development parcels within the site that could be sold to users and developers. • Place higher value, possibly multi-story buildings on 150 Street and one-story buildings on the north portion of the site. • Offer incentives for the targeted uses that could include tax increment financing, tax abatement, and special assessment districts. xii • Seek to encourage public/private partnerships with utility companies and other companies to reduce cost of occupancy in Apple Valley. These partnerships may include installing infrastructure using incentives and working with suppliers and business partners that may have an interest in co-locating with Uponor. Apple Valley should focus on attracting companies within those business groups where the City has a competitive edge. The City should cooperate and use the resources of Greater MSP in support of its activities. Greater MSP has identified the key industries and business sections that are most important now and in the future. Those business categories that are compatible with Apple Valley and Dakota County include: Bio Tech Health Care Providers Health Care Payers Health Care IT Software/IT Insurance Apple Valley should also explore the potential for a Global Innovation Park focused on sustainability capitalizing on European leadership in this area. The Global Innovation Park would focus on incorporating advanced technology to reduce energy consumption, reduce carbon footprint, and other conservation related activities. This could include knowledge transfer of European techniques to the United States. Using a local company that has European connections, such as Uponor, could be a component of the Global Innovation Park. Uponor is widely recognized in green industry circles for its leadership in energy efficient heating and cooling systems, including geothermal and district heading technology. Minnesota was recognized as the fourth most sustainable state in the United States by Site Selection magazine in July 2011. A sustainable approach could strengthen marketing of the site and attract high quality tenants. Minnesota provides national leadership in energy related fields including Honeywell controls, Daikin McQuay industrial heating and cooling, and the glass cluster that stretches from Burnsville to Owatonna near 1-35. The opportunity to develop the site in a cost effective but sustainable manner should be pursued including transit links and possible LEED certification. Possible partnerships with Uponor and/or Xcel Energy should be explored. Professional and technical services related to health care are a growth niche well suited to the Twin Cities and Apple Valley. These are services that can be made available regionally, nationally, or globally. Examples of some services that demonstrate growth potential and are a good fit for the Hanson Site and area workforce include: • Medical services including, but not limited to: physician's offices, surgical centers, and diagnostic services. • Sophisticated medical reference laboratories and genetic testing. • Processing/production — drug compounding for generic drugs; pharmacies that handle monthly or quarterly refills by mail. Corporate Headquarters Professional Services R & D Centers Advanced Manufacturing Energy/Renewables Creative Services • Medical informatics/payment processing. These recommendations are consistent with objectives to create higher income jobs in Apple Valley, increase the community business diversity, and create high value buildings and tax base. xiv INTRODUCTION McComb Group, Ltd. was engaged by the City of Apple Valley to assist the Community Development department in preparing a market analysis to determine future business park users for the Hanson Concrete Plant site. Work tasks conducted as part of this engagement are summarized below. • The Hanson Concrete site was visited and evaluated to determine its suitability for business park development. Factors that were evaluated include, but were not limited to: location, current conditions, access, ingress/egress, visibility, utility and fiber optic services, pipelines, and relationship to adjacent uses. Site and community assets that enhance development, and potential impediments to site redevelopment were identified. • Existing business park locations in Dakota County were identified. This task updated the previous McComb Group inventory of space and identified multi-tenant office, office warehouse, and office showroom buildings. The amount of vacant land that was zoned industrial and asking prices were identified. This analysis focused on the cities of Apple Valley, Burnsville, Eagan, Farmington, Lakeville, Mendota Heights, Inver Grove Heights, and Rosemount, which contain the major competitive business parks. Total square footage, current occupancy, vacancy, and date constructed were identified. For multi-tenant buildings, net rent, operating expense, and property taxes were determined. This inventory focused on buildings of 20,000 square feet or larger. Business park buildings that are under construction, planned, and/or proposed were also identified including size and type of building. • Telephone interviews were conducted with economic development organizations and other resources familiar with business and industrial development activities in the Metro Area and Dakota County to identify Dakota County and Apple Valley strengths and weaknesses for business development. In addition, this task sought to identify business categories that are growing and/or may need new facilities, or that may be seeking to locate in Dakota County. • Employment trends in the Minneapolis-St. Paul Metropolitan Statistical Area (MSA), Dakota County, and Apply Valley were compiled for business park inclined employment categories to establish a relationship between employment in these categories and absorption of business park space. Employment growth forecasts for the MSA were obtained and evaluated for candidate industries for Apple Valley. • Developers and brokers active in the Dakota County area were interviewed to gain their perspective on strengths and weaknesses of Dakota County and Apple Valley, demand for space, market opportunities, and their impressions of Apple Valley and the Hanson Concrete site as a business park location. • Trend identification and strategy formulation focused on reviewing results of previous work tasks to identify: • Apple Valley and Dakota County strengths and how to capitalize on them. • Apple Valley and Dakota County weaknesses and determine if they can be mitigated or are unimportant for some businesses. • Which businesses or technologies can benefit from Apple Valley's strengths. • Which businesses or technologies have site and location criteria that are consistent with Apple Valley. • How Apple Valley and the Hanson Concrete Site can be more cost efficient than competitive sites. • If existing Apple Valley business can become a contributor to attractive businesses to Apple Valley. • How to engage the current owner in a plan to market and develop the site to the types of businesses identified in the research. The results of this task were utilized to develop an implementation strategy. • Based on the results of the market research tasks, the consultant team prepared an implementation strategy to capitalize on market demand identified for potential users. • The Apple Valley zoning code designation for uses suitable for the Hanson Concrete site were reviewed to determine if revisions are needed to attract the types of uses desired by Apple Valley. The objective was to have zoning designations that are attractive to a wide range of higher quality business park developments. This report contains the primary information needed to support the principal conclusions. However, in a report of this nature, it is not possible to include all of the information that was developed and evaluated. Any additional information will be furnished upon request. Report Purpose This report was prepared in accordance with our proposal dated August 31, 2011. This report was prepared with the understanding that the results of our work will be used by the client to develop and implement development strategies for the Hanson Concrete Site. xvi The former Hanson Concrete Plant (Hanson Site) occupies an 80-acre site in Apple Valley. The property has been split into one 20-acre parcel north of 147 Street West and one 60-acre parcel south of 147 Street West. The site is zoned industrial, consistent with its use for manufacturing concrete products. The site is bounded by CSAH 42 on the south, Johnny Cake Ridge Road on the east, Johnny Cake Ridge Park on the north, and Magellan Pipeline Company tank farm on the west, as shown in Figure 1-1. The site is currently occupied by an office building, garage, and large remnants of the former cement manufacturing plant. The site is generally level with a gravel surface. A depression, which could be a detention pond, is located in the northwest corner of the 60 acre parcel. The site is divided into two parcels by an existing jet fuel pipeline and right-of-way that bisects the site in an east by northeast direction. Source: City of Apple Valley. Chapter I HANSON CONCRETE SITE Figure 1-1 HANSON SITE AND ENVIRONS An extension of 147 Street, to be completed in 2012, will be located as shown on Figure 1-1. The area north of 147 Street contains about 20 acres. The Hanson Site currently has three access points: two from CSAH 42 and one from Johnny Cake Ridge Road. Site Environs The area south of the Hanson Site along CSAH 42 is undergoing transition from gravel mining to other uses. The southeast corner of CSAH 42 and Flagstaff Avenue was recently rezoned for retail use. The balance of the area south of CSAH 42 remains part of an active gravel mine operated by Fischer Sand & Aggregate. The area east of Johnny Cake Ridge Road, north of 1-1 CSAH 42 is occupied by a business park. Uponor's North American Headquarters and manufacturing plant occupies a major portion of this area. North of 147 Street, a new light industrial building is under construction by R.J. Ryan Construction. The area to the northeast is occupied by single family homes. The aforementioned Johnny Cake Ridge Park lies to the north of the Hanson Site adjacent to a high school situated to the west. West of the Hanson Site, the north half of the Magellan Tank Farm is currently vacant. A major portion of this site will lie north of the proposed 147 Street. Flagstaff Avenue is currently being extended north from 147 Street improving the area's access. Access The Hanson Site has excellent access by way of CSAH 42 which extends west from TH-52 in Rosemount to I-35E and I-35W to the west. Primary north/south access is provided by TH-77 (Cedar Avenue), which extends south from interchanges with I-35E, 1-494 in Bloomington, and TH-62 in Richfield. TH-77 is a freeway until it reaches 140 Street in Apple Valley. Johnny Cake Ridge Road is a major collector extending north from CSAH 42 to CSAH 32 in Eagan. Traffic counts in the vicinity of the Hanson Site in 2010, contained in Table 1-1, were 27,500 on CSAH 42 on the southern boundary and 7,900 trips on Johnny Cake Ridge Road on the east side of the site. Major freeways serving northern Dakota County include I-35E, TH-77, and TH-52. Each of these freeways are major river crossings, as shown on Map 1-1, and connect Dakota County and Apple Valley to Minneapolis, St. Paul, and the metro area north of the Minnesota and Mississippi Rivers. These routes provide convenient access to Apple Valley and the Hanson Site. yright 2012 McComb Group, Ltd Map 1-1 HIGHWAY SYSTEM SERVING APPLE VALLEY 14 ansonSite 0 0 $ 1 1 6 $t,44. 64, mile, 08/01112 Traffic counts on these highways in 2010 are contained in Table 1 -1. TH -77 is the major north/south route to Apple Valley, and CSAH 42 is the major east /west route. Both roads carry significant traffic volumes. Cedar Avenue south from I 35E South of 1-35E South of McAndrews North of CSAH 42 Table 1 -1 TRAFFIC COUNTS ON ROUTES TO HANSON CONCRETE; 2010 CSAH 42 east from 1-35 East of I -35W East of I -35E West of Cedar Avenue East of Cedar Avenue West ofJohnny Cake Ridge Road CSAH 42 west from TH 52 West of TH -52 East ofTH -3 West of TH -3 East of Diamond Path East of Pilot Knob West ofJohnny Cakre Ridge Road Location Count Source: Minnesota Department of Transportation. 73,000 55,000 46,500 52,000 28,000 28,000 3 5, 500 27,500 11,800 13,300 17,400 20,400 19,700 27,500 Traffic counts on Cedar Avenue south of I -35E were 73,000 declining to 46,500 north of CSAH 42. The Hanson Site is about 1.5 miles east of Cedar Avenue. Traffic counts on CSAH 42 east of TH -77 were 35,500 and 27,500 at the Hanson Site. The non - freeway segment of this route is about 2.5 miles. Access from I -3 5 W and I -3 5E to the west is by way of CSAH 42, an urban four lane road. The interchanges between I -3 5E and I -3 5 W with CSAH 42 occur 4.25 and 4.75 miles, respectively, to the west. Traffic counts on CSAH 42 between I -35W and I -35E were 52,000 in 2010. Traffic counts drop sharply to 28,000 trips east of I -35E and remain steady to Cedar Avenue three miles to the east. Traffic counts increase to 35,500 east of Cedar Avenue, and decline to 27,500 at the Hanson Site. TH -52 connects the metro area to Rochester and southeastern Minnesota and I -90. The TH -52 interchange with CSAH 42 is located eight miles to the east. Traffic counts on CSAH 42 west of TH -52 are 11,800 and increase to 13,300 east of TH -3. Traffic counts increase to 17,400 trips west of TH -3 and 27,500 at the Hanson Site. Apple Valley enjoys frequent bus service from the Apple Valley Transit Center at 155 Avenue on Cedar Avenue. Bus routes connect Apple Valley to Minneapolis, St. Paul, Bloomington, Burnsville, Eagan, Rosemount, and Lakeville. Transit service will soon be enhanced by the Cedar Avenue Bus Rapid Transit, which will provide high frequency service and connect to the Hiawatha LRT route at the Mall of America Transit Station. This will provide convenient access to MSP International Airport, the University of Minnesota, downtown Minneapolis, and connections to destinations on the Central Avenue LRT. The long distances from freeways are a deterrent to businesses with high truck volume. Access for employees is good since most Apple Valley employees live in surrounding communities or reverse commute from Minneapolis, St. Paul, and other communities north of the Minnesota and Mississippi Rivers. Utilities The Hanson site is served by City water and sewer. Natural gas is provided by CenterPoint. Electric service is provided by Xcel Energy. Conduit for fiber optic cable is being installed in the 147 Street ROW. Zoning The Hanson Site is currently zoned 1-2, which was consistent with its previous use. Hanson Concrete's predecessor developed the site in 1 965 when Apple Valley was a rural township without municipal services or hard surfaced roads. As the area grew and incorporated, it was natural to zone the Hanson Site 1-2 based on its use at the time. Over the past 50 years, development has occurred nearby which includes retail, parks and recreation, schools, residential, and increased traffic counts that suggest a more intensive, higher, and better use of the Hanson Site that is not dependent upon heavy truck traffic. When the 2030 Comprehensive Land Use Plan was completed in 2009, Hanson Concrete was fully operational producing reinforced concrete pipe, which generated heavy truck traffic both for receiving of raw material and delivery of finished products. Given the size of the facility, site, and capital investment, it was logical to maintain the site's 1-2 zoning. However, the facility has closed and been decommissioned. Had this change taken place at the time the Comprehensive Plan was updated, the Apple Valley community may have guided the site's use differently. The property to the south is guided Mixed Business Campus, which would be appropriate for the Hanson Site. Apple Valley competes with other communities in Dakota County for office and business park development. Major competitive cities include: Burnsville, Eagan, and Mendota Heights. Major business park building types include: office, office showroom, office warehouse, and bulk warehouse. Market conditions for these buildings have been weak since the great recession began in 2007. Changes in occupied space between 2007 and 2011, and 2011 vacancy rate are summarized in Table 2-1. Apple Valley has experienced negative absorption in office and office showroom; while office warehouse occupancy increased modestly by 7,564 square feet. Vacancy rates are well above normal for all categories except office showroom. In the competitive cities space absorption has been negative except for office space. Office warehouse and bulk warehouse have been particularly weak. Vacancy rates are also well above normal. These market conditions indicate that there is substantial vacant space to accommodate those tenants seeking space in multi-tenant buildings in Dakota County. Market conditions for each building type are described in the following pages. CHANGE IN OCCUPIED SPACE: 2007 TO 2011 AND 2011 VACANCY RATE (Square Feet) Office (9,548) 24.1 % 99,532 22.5 % Office Showroom (3,752) 5.0 (80,783) 27.9 Office Warehouse 7,564 26.9 (306,523) 17.4 Bulk Warehouse (448,007) 10.5 Source: United Properties and McComb Group, Ltd. MULTI-TENANT OFFICE BUILDINGS Chapter II COMPETITIVE BUSINESS PARKS Table 2-1 Apple Valley Competitive Cities Amount Vacant Amount Vacant The real estate industry maintains databases of multi-tenant buildings, since that is where most of the leasing activity occurs. This analysis is based on information obtained from United Properties, a Twin Cities area real estate company, augmented by information from the City of Apple Valley, Greater MSP, Commercial Real Estate Minnesota, and McComb Group, Ltd. Multi-tenant office space includes three classes of offices; Class A, usually 200,000 square feet or larger, constructed after 1980 with business amenities; Class B, older buildings, usually renovated and in good location; and Class C, older, not renovated building of any size in average to poor condition. Only buildings with 20,000 square feet of space are included. Apple Valley and surrounding communities multi-tenant office buildings are shown on Map 2-1. Table 2-2 contains total, occupied, and vacant multi-tenant office space for the years 2007 to 2011. , tv Cownght 2012 McComb Group, Ltd Apple Valley Total Space Occupied Space Vacant Space Vacancy Rate Competitive Cities Total Space Occupied Space Vacant Space Vacancy Rate South Airport Total Space Occupied Space Vacant Space Vacancy Rate Source: United P roperties Map 2-1 MULTI-TENANT OFFICE BUILDINGS Table 2-2 MULTI-TENANT OFFICE SPACE TOTAL, OCCUPIED, AND VACANT SPACE; 2007 TO 2011 2007 368,135 288,860 79,275 21.5 % 2,491,505 2,022,694 349,833 14.0 % 5,205,817 4,508,460 697,357 13.4 % 2008 368,135 278,002 90,133 24.5 % 2,638,757 2,145,471 374,308 14.2 % 5,481,231 4,719,341 761,890 13.4 % 2009 368,135 272,980 95,155 25.8 % 2,638,757 2,142,439 377,340 14.3 % 5,481,231 4,521,706 959,525 17.5 % 2010 368,135 271,148 96,987 26.3 % 2,738,099 1,984,137 634,984 23.2 % 5,580,573 4,376,309 1,204,264 21.6 % 2011 05, 368,135 279,312 88,823 24.1 % 2,738,099 2,122,226 615,873 22.5 % 5,580,573 4,529,808 1,050,765 18.8 % In general, multi-tenant office space has experienced high vacancy rates over the last four years. Apple Valley has approximately 368,135 square feet of multi-tenant office space, which hasn't changed since 2007. Multi-tenant vacant office space in Apple Valley fluctuated between 80,000 square feet and 97,000 square feet between 2007 and 2010 and dropped to 89,000 square feet by 2011. However, Apple Valley's vacancy rate for multi-tenant office space was 24.1 percent in 2011, which is similar to the trend of the prior four years. Competitive cities of Burnsville, Eagan, and Mendota Heights have seen an increase in multi- tenant office space over the past four years, increasing from 2.5 million square feet to over 2.7 million square feet. At the same time, vacancy rates increased from 14.0 percent in 2007 to 23.2 percent in 2010, declining modestly to 22.5 percent in 2011. South Airport submarket communities include the additional cities of Richfield, Bloomington, and St. Paul. This region had 5.2 million square feet of multi-tenant office space in 2007, which increased by 375,000 square feet resulting in a total of approximately 5.6 million square feet in 2011. Multi-tenant office space vacancy in this region increased steadily from 13.4 percent in 2007 to 21.6 percent in 2010, and declined to 18.8 percent in 2011. Rental rates, expenses, and taxes for multi-tenant office buildings are contained in Table 2-3. Average net rental rates by class for Apple Valley multi-tenant office buildings range between $10.67 per square foot and $18.00 per square foot, with an average of about $13.70 per square foot. Expenses range from $4.42 to $8.07, and taxes average $3.85 for Apple Valley multi- tenant office buildings. City/Class Inver Grove Heights B MULTI-TENANT OFFICE BUILDINGS NET RENT, EXPENSES, AND TAXES BY CLASS Rent Rate Table 2-3 Low High Expenses Taxes Buildings Apple Valley A $ 12.67 $ 18.00 $ 4.96 $ 3.91 4 B 10.67 13.35 8.07 4.01 4 C 14.00 4.42 3.43 1 Burnsville A $ 12.08 $ 16.17 $ 5.94 $ 4.21 6 B 11.28 13.08 5.74 3.35 19 C 10.48 13.00 5.64 3.21 4 Eagan A $ 14.18 $ 17.74 $ 6.46 $ 4.03 12 B 12.81 12.96 5.69 3.46 18 C 8.88 9.50 5.12 2.48 4 Mendota Heights A $ 12.25 $ 13.25 $ 7.39 $ 3.27 4 B 11.27 11.50 2.49 2.77 15 C 8.50 5.70 1.51 1 Lakeville A $ 13.32 $ 2.13 $ 4.71 6 B 14.69 16.55 4 C 16.00 1 $ 11.50 $ 13.00 $ 3.20 2 10.00 14.00 1 Source: GreaterMSP , United P ro p e rtie s Co mme rc ia 1 R e al Es ta te Minnesota. Burnsville has 29 multi-tenant office buildings ranging in size from 4,200 square feet to 141,600 square feet. Average rental rates by class range from $10.48 to $16.17 per square foot, with an average of $12.12 per square foot. Expenses range from $5.64 to $5.94 and taxes range from $3.21 to $4.21. Eagan has the largest concentration of commercial office buildings within the Dakota County study area. In total, Eagan has 34 commercial office buildings, with four buildings representing almost one-third of the total multi-tenant office space in Eagan. Multi-tenant office buildings in Eagan range from 5,675 square feet to 150,000 square feet with average rents ranging from $8.88 per square foot to $17.74 per square foot. Expenses range from $5.12 to $6.46 and taxes range from $2.48 to $4.03. Mendota Heights has 20 multi-tenant office buildings ranging in size from 3,072 square feet to 140,000 square feet. Average net rental rates by class range from $8.50 to $13.25 per square foot with the average rent for Mendota Heights commercial office buildings at $11.61 per square foot, the lowest average rental rate within the study area. Total expenses and taxes average about $6.82 per square foot with average expenses ranging from $2.49 per square foot to $7.39 per square foot, and average taxes ranging from $1.51 per square foot to $3.27 per square foot. Lakeville has over 140,000 square feet of office space, in 11 buildings. Average office building rent within Lakeville ranges from $13.32 to $16.55 per square foot, with an average of $14.27 per square foot, the highest average rent within the Apple Valley study area. Expenses average $2.13 and taxes average $4.71. Inver Grove Heights has over 32,000 square feet of office space and Rosemount has one office building with 13,000 square feet. Rent for office space in the Inver Grove Heights buildings averages between $10.00 and $14.00 per square foot. Additional data on these two communities' office inventory was limited. Rosemount has one office building developed in 2009 with net rent of $12.50 per square foot. Proposed Multi-Tenant Office Buildings There are seven proposed multi-tenant office buildings with over 940,000 square feet of office space in the Dakota County study area, as shown in Table 2-4. Table 2-4 PROPOSED MULTI-TENANT OFFICE BUILDINGS Square Net City/Building Feet Rent Eagan Waters Ridge Office Center 76,000 $ 17.50 Boulder Lakes Office I 48,478 13.50 Blue Getian Corporate Center 290,000 16.50 Cedar Grove Center 150,000 15.00 Burnsville Gateway Office Plaza II 100,000 $ 16.00 Mendota Heights 1111 Centre Pointe Blvd 130,000 $ 16.00 Signature Corporate Center 150,000 17.00 Source: Greater MSP , United Properties, CommercialRealEstate Minnesota. 2-4 Eagan developers are the most aggressive with four buildings proposed for a total of 564,000 square feet. Mendota Heights has two buildings proposed for a total of 280,000 square feet and Burnsville has one 100,000 square foot building proposed. Average rent for these buildings is estimated at about $16.00 per square foot. MULTI-TENANT OFFICE SHOWROOM Multi-tenant office showroom space is defined as buildings that typically offer smaller bay sizes and better than normal finishes and landscaping, typical clear height ceilings are less than 16 feet. Geographic areas for office showroom, office warehouse, and bulk warehouse differ from those for commercial office space. Competitive cities include: Apple Valley, Burnsville, Eagan, Farmington, Inver Grove Heights, Lakeville, and Mendota Heights. Regional data includes the additional cities of Bloomington, Lakeville, Mendota Heights, Oakdale, St. Paul, South St. Paul, West St. Paul, and Woodbury. Data for Apple Valley, competitive cities, and the South Airport Region total occupied and vacant multi-tenant office showroom space for the years 2007 to 2011 is shown in Table 2-5. In general, multi-tenant office showroom occupied space within all three areas has been declining over the last four years. Apple Valley Total Space 121,165 121,165 121,165 121,165 121,165 Occupied Space 118,813 121,165 121,165 112,723 115,061 Vacant Space 2,352 - 8,442 6,104 Vacancy Rate 1.9 % - % - % 7.0 % 5.0 % Competitive Cities Total Space Occupied Space Vacant Space Vacancy Rate Southeast Total Space Occupied Space Vacant Space Vacancy Rate Source: United P roperties. MULTI-TENANT OFFICE SHOWROOM TOTAL, OCCUPIED, AND VACANT SPACE; 2007 TO 2011 2007 2,124,705 2,485,946 1,872,210 2,014,958 252,495 470,988 11.9 % 18.9 % 2,736,490 2,454,366 282,124 10.3 % Table 2-5 2008 2009 2010 2011 3,147,388 2,638,771 508,617 16.2 % 2,485,946 1,931,698 554,248 22.3 % 3,113,618 2,514,893 598,725 19.2 % 2,485,946 1,835,745 650,201 26.2 % 3,168,618 2,468,975 699,643 22.1 % 2,485,980 1,791,427 694,553 27.9 % 3,147,422 2,417,202 730,220 23.2 % Apple Valley office showroom space remained constant at 121,000 square feet between 2007 and 2011. Occupied space for Apple Valley have fluctuated between 2007 and 2011. In 2007, Apple Valley's multi-tenant office showroom vacancy was 1.9 percent; data indicates that in 2008 and 2009 all office showroom space was occupied; and in 2010 reported vacancy reached 7.0 percent and decreased to 5.0 percent in 2011. Multi-tenant office showroom space in competitive cities totaled 2.1 million square feet in 2007 and increased to about 2.5 million square feet in 2011, representing an increase of 360,000 square feet. Occupied space in multi-tenant showroom buildings has steadily decreased since 2007. In 2007, 11.9 percent of multi-tenant office showroom space was vacant; steady increases occurred over the next four years with vacancy reaching 27.9 percent by 2011. In 2011, 694,000 square feet of multi-tenant office showroom space was vacant. The Southeast Region contained over 2.7 million square feet of multi-tenant office showroom space in 2007, which increased by over 400,000 square feet to 3.1 million square feet in 2011. At the same time, vacancy increased from 10.3 percent in 2007 to 23.2 percent in 2011. Multi-tenant office showroom buildings are shown on Map 2-2 and are described below. Map 2-2 MULTI-TENANT OFFICE SHOWROOM BUILDINGS Copyright 2012 McComb Grcip , Ltd, 05/10/12 Apple Valley has three multi-tenant office showroom buildings for a total of 121,165 square feet. The average rent for office space is $9.08 per square foot and $4.75 per square foot for warehouse space, as shown in Table 2-6. Total expenses average $4.50 per square foot. Vacancy within Apple Valley multi-tenant office showroom buildings is currently about nine percent. Burnsville has 19 multi-tenant office showroom buildings with a total of 936,641 square feet of space. The largest multi-tenant office showroom building in Burnsville is about 80,000 square feet and the smallest is about 20,000 square feet. Office space rent averages $8.93 per square foot. Warehouse space rents average $5.39 per square foot. Expenses average $2.14 per square foot, and taxes average $1.92 per square foot. Burnsville has the highest multi-tenant office showroom vacancy rate of the study area communities at 31.0 percent. Rent Rate Table 2-6 MULTI-TENANT OFFICE SHOWROOM BUILDINGS NET RENT, EXPENSES, AND TAXES City Office Whse Expenses Taxes Buildings Apple Valley $ 9.08 $ 4.75 $ 2.38 $ 2.12 3 Burnsville 8.93 5.39 2.14 1.92 19 Eagan 10.12 5.74 1.66 2.18 17 Mendota Heights 9.90 6.75 2.33 2.02 7 Lakeville 6.50 6.50 1 Source: Greater MSP, United Properties, Commercial Real Estate Minnesota Eagan offers the most multi-tenant office showroom space within the Dakota County study area. There are 17 multi-tenant office showroom buildings with a total of 1.1 million square feet of space. Building sizes range from 38,000 square feet to 116,000 square feet. Eagan multi-tenant office showroom building rent ranges average $10.12 per square foot for office space and $5.74 per square foot for warehouse space. The average office rent at $10.12 per square foot is the highest rate out of all of the study area communities. Expenses average $1.66 per square foot, and taxes average $2.18 per square foot. Current vacancy for Eagan's multi-tenant office showroom buildings is about 25 percent. Mendota Heights contains seven multi-tenant office showroom buildings, five of which are located in Mendota Heights Business Park. Mendota Heights Business Park contains 174,000 square feet of space, which is almost two thirds of the total office showroom space within Mendota Heights. Average office rents for Mendota Heights multi-tenant office showroom space ranges from $8.50 per square foot to $11.00 per square foot and warehouse space rent ranges from $4.75 per square foot to $9.90 per square foot. Expenses average $2.33 per square foot and taxes average $2.02 per square foot. Current multi-tenant office showroom vacancy for Mendota Heights is 11 percent. Lakeville has the newest multi-tenant office showroom building within the study area. Airlake South Creek Business Center was constructed in 2007 and it is the only multi-tenant office showroom building within Lakeville. This building is about 30,000 square feet and is fully occupied at this time. Rent for both office and warehouse is $6.50 per square foot. A second, 15,000 square foot Airlake South Creek Business Center building is currently proposed for Lakeville. MULTI-TENANT OFFICE WAREHOUSE Office warehouse space is defined as facilities with 16 to 20 feet clear height ceilings. Multi- tenant office warehouse space is shown in Table 2-7 for Apple Valley, competitive cities and the Southeast Region. Apple Valley multi-tenant office warehouse space has increased by 33,000 square feet from 61,000 square feet in 2007 to 94,600 square feet in 2011. Occupied space in these buildings increased to 75,136 square feet in 2010 and declined to 69,158 square feet in 2011. The vacancy rate was 26.9 percent in 2011. Vacant multi - tenant office warehouse space in 2011 was 25,000 square feet. Apple Valley Total Space Occupied Space Vacant Space Vacancy Rate Competitive Cities Total Space Occupied Space Vacant Space Vacancy Rate Southeast Total Space Occupied Space Vacant Space Vacancy Rate Source: United Properties. Table 2 -7 MULTI - TENANT OFFICE WAREHOUSE TOTAL, OCCUPIED, AND VACANT SPACE; 2007 TO 2011 2007 2008 2009 61,594 61,594 6,976,481 6,235,400 741,081 10.6 % 7,779,450 6,945,592 833,858 103 % 94,604 72,076 22,528 23.8 % 7,175, 899 6,141,834 1,034,065 14.4 % 8,017,221 6,827,952 1,189,269 14.8 % 94,604 68,983 25,621 27.1 % 2010 2011 94,604 75,136 19,468 20.6 % 94,604 69,158 25,446 26.9 % 7,212,599 7,212,599 7,175,899 6,176,595 6,011,487 5,928,877 1,036,004 1,201,112 1,247,022 14.4 % 16.7 % 17.4 % 8,053,921 8,053,921 7,941,131 6,834,728 6,695,987 6,571,253 1,219,193 1,357,934 1,369,878 15.1 % 16.9 % 17.3 % Multi - tenant office warehouse space in competitive cities has increased from about 7.0 million square feet to about 7.2 million square feet, an increase of 200,000 square feet. Between 2008 and 2010, an additional 36,700 square feet was reported; however in 2011, total multi- tenant office warehouse square feet did not include that additional space. Occupancy for these buildings has decreased since 2007. The vacancy rate has increased from 10.6 percent to 17.4 percent. The Southeast Region has seen a slight increase in multi - tenant office warehouse space since 2007, increasing from 7.8 million square feet to 7.9 million square feet in 2011. The peak of total office warehouse space was in 2009 and 2010, when 8.0 million square feet of office warehouse space was reported; however in 2011, total space decreased to 7.9 million square feet. Occupied space in these buildings has steadily decreased since 2007. In 2007, the vacancy rate was 10.7 percent and increased steadily to 17.3 percent in 2011. Total multi - tenant office warehouse vacant space was almost 1.4 million square feet in 2011. The office warehouse category also includes office research, office manufacturers and other types of similar uses. Office warehouse buildings are shown on Map 2 -3. Coitbt 2012 NI Map 2-3 MULTI-TENANT OFFICE WAREHOUSE BUILDINGS tj OttleeWarehouse i:s ' Sorer 2.92 Wee i4t cOomb Group, Ltd Apple Valley has three multi-tenant office warehouse properties totaling over 94,000 square feet. The average office rent for these buildings is $9.13 per square foot and warehouse rent average is $7.13 per square foot, as shown in Table 2-8. Expenses average $1.49 per square foot and taxes average $1.99 per square foot. Total vacancy for these buildings is estimated at 27 percent. City Rent Rate Table 2-8 MULTI-TENANT OFFICE WAREHOUSE BUILDINGS NET RENT, EXPENSES, AND TAXES Office Whse Expenses Taxes Buildings Apple Valley $ 9.13 $ 7.13 $ 1.49 $ 1.99 3 Burnsville 8.07 4.59 1.39 1.76 39 Eagan 8.46 4.45 1.25 1.72 51 Mendota Heights 9.45 4.50 1.54 1.45 5 Lakeville 7.84 4.89 1.22 1.29 5 Inver Grove Heights 8.25 4.25 0.77 1.08 2 Source: Greater MSP, United Properties, Commercial Real Estate Minnesota Burnsville has 39 multi-tenant office warehouse buildings with a total of 1.7 million square feet. These office warehouse buildings range in size from 36,000 square feet to 118,000 square feet, with the average being 45,000 square feet. Office rents average $8.07 per square foot and L 05115112 warehouse rents average $4.59 per square foot. Expenses average $1.39 per square foot and taxes average $1.76 per square foot. Average vacancy in Burnsville for office warehouse space is about 16 percent. Eagan has the largest total square footage of multi-tenant office warehouse space within the Dakota County study area, with 51 buildings and over 4.4 million square feet. There are two large business parks that contain almost 20 percent of the total square footage for Eagan: Corporate Square at 532,860 total square feet and Armstrong Business Center at 308,557 square feet. In total, 30 percent of the multi-tenant office warehouse buildings in Eagan are larger than 100,000 square feet. These 15 buildings represent 2.3 million square feet, or over 50.0 percent of Eagan's total multi-tenant office warehouse square footage. Average rent for office space is $8.46 per square foot and an average of $4.59 per square foot for warehouse space. Expenses average $1.25 per square foot and taxes average $1.72 per square foot. Overall office warehouse vacancy in Eagan is approximately 11 percent. Mendota Heights has five multi-tenant office warehouse buildings ranging in size from 48,000 to 150,000 square feet. Average office rent for these buildings is $9.45 per square foot and $4.50 per square foot for warehouse space. Expenses average $1.54 per square foot and taxes average $1.45 per square foot. The current vacancy rate is 11 percent in Mendota Heights. Lakeville contains over 179,000 square feet of multi-tenant office warehouse space in five buildings ranging in size from 12,960 to 93,210 square feet. Average office rent is $7.84 per square foot, while warehouse rent averages $4.89 per square foot. Expenses average $1.22 per square foot and taxes average $1.29 per square foot. According to available data, the vacancy rate for multi-tenant office warehouse space is currently at 2.0 percent, the lowest of all the study area communities. Inver Grove Heights has two multi-tenant office warehouse buildings: St. Paul Industrial Properties #16 and #17. In total, these two buildings contain over 124,000 square feet of office warehouse space. Average office rent is $8.25 per square foot and warehouse average rent is $4.25 per square foot with average expenses of $0.77 per square foot and taxes of $1.08 per square foot. Current office warehouse vacancy is 21 percent in Inver Grove Heights. MULTI-TENANT BULK WAREHOUSE Bulk warehouse is defined as facilities that have 21 foot or more clear height ceilings and are generally located near major transportation corridors. Multi-tenant bulk warehouse buildings are shown in Table 2-9. While Apple Valley does not have any bulk warehouse buildings, the state of the market in competitive cities is indicative of market conditions. Total multi-tenant bulk warehouse space declined in both the competitive cities and the Southeast Region between 2008 and 2011. The decline in competitive cities was almost 900,000 square feet or 18 percent. Vacancy rates increased between 2007 and 2010 and declined in 2011, only because total space declined. Competitive cities had a total of 4.6 million square feet of multi-tenant bulk warehouse space in 2007 and peaked with 4.8 million square feet in 2008, however in 2009, bulk warehouse space decreased to 4.4 million and further decreased to 3.9 million in 2011. Bulk warehouse vacancy for these cities also decreased between 2007 and 2011. Bulk warehouse vacancy was 13.4 percent in 2007 and increased to a high of 17.5 percent in 2010; however, in 2011 it decreased to 10.5 percent. Total vacant bulk warehouse space in 2011 was 417,000 square feet. 2-10 Competitive Cities Total Space Occupied Space Vacant Space Vacancy Rate Southeast Total Space Occupied Space Vacant Space Vacancy Rate Source: United Properties. opyn 2012 McComb Group, Ltd, 4,604,037 3,986,555 617,482 13.4 % 5,362,990 4,735,508 627,482 11.7 % Table 2-9 MULTI-TENANT BULK WAREHOUSE TOTAL, OCCUPIED, AND VACANT SPACE; 2007 TO 2011 2007 2008 2009 2010 2011 4,832,037 4,418,798 4,418,798 3,953,367 4,016,549 3,661,086 3,646,786 3,538,548 817,488 759,712 774,012 416,819 16.9 % 17.2 % 17.5 % 10.5 % 5,592,990 5,179,751 5,179,751 4,714,320 4,759,537 4,404,074 4,389,774 4,218,118 833,453 775,677 789,977 496,202 14.9 % 14.9 % 15.3 % 10.5 % Southeast Region had a total of 5.4 million square feet of bulk warehouse space in 2007, which increased to 5.6 million in 2008; however, bulk warehouse space declined to 4.7 million square feet by 2011. Bulk warehouse vacancy rates fluctuated between 11.7 percent in 2007 to 15.3 percent in 2010 to 10.5 percent in 2011. Bulk warehouse space totaled 4.74 million square feet in the Dakota County study area in 2011. Bulk warehouse buildings are shown on Map 2-4 Map 2-4 MULTI-TENANT BULK WAREHOUSE BUILDINGS Sulk Warehou 0 3 4 Sole 2 92 milvs 05/30/12 Rent Rate Table 2 -10 BULK WAREHOUSE BUILDINGS NET RENT, EXPENSES, AND TAXES City Office Whs e Exp enses Taxes Buildings Burnsville $ 6.86 $ 3.94 $ 1.48 $ 1.46 5 Eagan 6.85 4.38 0.92 1.47 18 Inver Grove Heights 7.95 1.29 0.51 2 Lakeville 3.75 3.75 0.68 0.71 2 Mendota Heights 8.63 4.13 0.72 0.98 2 Farmington 4.00 2.50 0.50 0.93 1 Source: Greater MSP, United Properties, Commercial Real Estate Minnesota Burnsville contains five multi - tenant bulk warehouse buildings for a total of 744,311 square feet of space. Building size ranges from 31,000 square feet to 413,000 square feet. Rent for office space averages $6.86 per square foot and warehouse space rent averages $3.94 per square foot. Expenses for these buildings average $1.48 per square foot and taxes average $1.46 per square foot. Burnsville's largest bulk warehouse contains 413,000 square feet and is currently vacant, which drives Burnsville's vacancy rate to 62 percent. Eagan has the largest inventory of bulk warehouse space with 18 bulk warehouse buildings that total 2,316,543 square feet. Five of the 18 buildings, or one - quarter, contain over 200,000 square feet. These five buildings represent over one -half of the total bulk warehouse space for Eagan. Average rent for Eagan's bulk warehouse buildings is $6.85 per square foot for office space and $4.38 per square foot for warehouse space. Expenses average $0.92 per square foot and taxes average $1.47 per square foot. Estimated bulk warehouse vacancy in Eagan is 13 percent, one of the lowest vacancy rates for the Dakota County study area. Mendota Heights, with two large bulk warehouse buildings, contains the second largest multi- tenant bulk warehouse space inventory within study area communities. In total, Mendota Heights has 575,000 square feet of bulk warehouse space. Office rent averages $8.63 per square foot and warehouse space rent averages $4.13 per square foot. Expenses average $0.72 per square foot and taxes for both buildings are $0.98 per square foot. Current vacancy for Mendota Heights bulk warehouse buildings is about 19 percent. Inver Grove Heights has two bulk warehouse buildings that total 556,542 square feet. The buildings range in size from 174,180 square feet to 3 82,3 62 square feet. Rent information was available for one of the buildings, office rent for this building was $7.95 per square foot, warehouse rent was not available. Available data shows expenses at $1.29 per square foot and taxes at $0.51 per square foot. Current vacancy is 52 percent driven by an 84 percent vacancy in one building. Lakeville has two large bulk warehouse buildings totaling over 400,000 square feet. Rent data was available for one building, which indicated that office rent and warehouse rent was $3.75 per square foot with expenses of $0.68 per square foot and taxes of $0.71 per square foot. Both of these bulk warehouse buildings are currently fully occupied. 2 -12 Farmington has approximately 145,000 square feet of bulk warehouse space in two buildings. Rental and expense data available for one of the buildings indicates that office rent is $4.00 per square foot and warehouse rent is $2.50 per square foot. Expenses are estimated at $0.50 per square foot and taxes were $0.93 per square foot. Current bulk warehouse vacancy in Farmington is about 44 percent. VACANT LAND The Hanson Site is one of the largest, but not the largest, vacant property offered for sale in Dakota County. There are, however, three larger parcels that are currently offered for sale: two in Lakeville and one in Farmington, which is not included in the competitive cities. In fall of 2011, there were 128 vacant parcels offered for sale. Eighty-two of these parcels were less than 10 acres in size. Forty-one parcels were larger than 10 acres in size and could accommodate large users that would consider the Hanson Site. Vacant parcels larger than 10 acres offered for sale are contained in Table 2-11 and shown on Map 2-5. The Hanson Site appears to be offered as two parcels of 60 and 20 acres. The larger parcel is offered at $2.00 per square foot and the smaller is offered at $4.75 per square foot. A 200-acre parcel in Lakeville is offered at $2.50 per square foot. Five other parcels in Apple Valley are offered for sale ranging in size from 10 to 21 acres at prices ranging from $3.00 per square foot to $8.50 per square foot. Map 2-5 VACANT INDUSTRIAL AND BUSINESS PARK LAND FOR SALE 0 2 3 4 t4;', Stec 2 92 mites 2-13 pyright 2012 McComb Group, Ltd.. 02122112 Table 2-11 VACANT LAND: APPLE VALLEY AND COMPETITIVE CITIES Property Asking Price Acres $ P/SF APPI ,E VALLEY 1 Hanson Concrete $6,969,600 60.0 $ 2.00 2 Northstar Concrete Co 4,138,200 20.0 4.75 3 Apple Valley Golf Course Neg. 21.9 NA 4 Eagle Rdg Bus Prk/Patina 2,442,408 - 4,477,748 18.7 3.00 5 Cobblestone Lake 4,480,146 12.1 8.50 6 145th St W 2,024,800 10.9 4.25 7 Fischer M arketp lace Neg. 10.0 NA Subtotal 153.6 BURNS VILLE 8 12200 River Ridge Blvd $8,700,000 28.8 S 6.93 EAGAN 9 NW of Yankee Doodle & I-35E Neg. 24.6 NA 10 1501-1545 Yankee Doodle Rd $8,300,000 23.9 $ 7.97 11 S. Robert Trail & Diffley Rd. 3,920,400 20.0 4.50 12 1501 Yankee Doodle Rd 4,181,760 12.0 8.00 Subtotal 80.5 INVER GROVE HEIGHTS 13 NE of 70th St E & S Robert Trail $2,010,000 39.6 $ 1.17 14 8011 Courthouse Blvd 599,000 32.5 0.42 15 Hoovestol Parcels I & II 1,592,118 - 2,634,513 34.4 1.06 - 1.76 16 Robert Corners 3,920,400 20.0 4.50 17 2574 90th St E 699,900 19.4 0.83 18 Diffley Rd & S Robert Trail 3,267,000 15.0 5.00 19 SE of Yankee Doodle Rd & Argenta Trl 775,000 9.3 1.92 Subtotal 170.1 RO S EMO UN T 20 Rosemount Business Park $9,801,000 - $11,979,000 50.0 $4.50 - $5.50 21 JJT Business Park 5,869,710 35.0 3.85 22 13273 Pine Bend Trail Neg. 26.3 NA 23 Endres Processing Land 2,532,358 16.6 3.50 24 NW of Co Rd 46 and Biscayne Ave 2,286,900 15.3 3.43 25 NW of CR 42 & Biscayne 1,350,000 14.9 2.08 27 Doyle Path E & Hwy 55 420,000 13.2 0.73 Subtotal 171.4 MEND 0 TA HEIGHTS 27 0 Commerce Drive Neg. 10.3 NA LAKEVILLE 28 Airlake Industrial Park $21,780,000 200.0 $ 2.50 29 I-35 & 205th St Neg. 132.6 NA 30 First Park Lakeville Neg. 50.0 NA 31 Airlake Station 11,434,500 42.0 6.25 32 Lakeville Commerce Center 1,646,565 41.3 0.91 33 18950 Kenwood Trail 2,500,000 37.7 1.52 34 SE of Hwy 70 & Highview Ave 3,857,000 25.0 3.54 35 Jurel Way & Kenwood Trail 1,750,000 17.7 2.27 36 NW of Dodd Rd & Cedar Ave 5,401,440 15.5 8.00 37 Lakeville Land Site 3 3,273,100 15.0 5.00 38 SEQ 190th St & Dodd Rd 700,000 12.4 1.30 39 7900 Lakeville Blvd 1,845,200 10.6 4.00 40 Kenwood Trail N of 185th 699,000 10.1 1.59 Subtotal 609.9 Total 1,224.7 So urces: M NCA R, Loo pnet, Greater M SP and Showcase. 2-14 Eagan had four parcels ranging in size from 12 to 24.6 acres offered at prices ranging from $4.50 to $8.00 per square foot. Three of the Eagan sites are well located in the vicinity of I-35E and Yankee Doodle Road. Inver Grove Heights had seven parcels ranging in size from 9.3 to 39.6 acres with prices ranged from $0.42 to $5.00 per square foot. Five of the parcels are offered at less than $2.00 per square foot. Rosemount has seven parcels offered for sale ranging in size from 13.2 to 50 acres at prices of $0.73 to $5.50 per square foot. Three parcels are in the vicinity of CSAH 42 and TH-3 and three others are in the Pine Bend area. Site 21 is listed as retail/general with no nearby residential. Lakeville has 13 parcels ranging in size from 10 to 200 acres with offering prices of $0.91 to $8.00 per square foot. Five sites are in the vicinity of Air lake Industrial Park and three are near 1-35. There are numerous parcels of well located land available along limited access freeways in Dakota County that will be more attractive to businesses that desire convenient truck access. The Apple Valley sites along CSAH 42 are more convenient than sites located in Central Lakeville, Inver Grove Heights, and Rosemount. MEDICAL OFFICE BUILDINGS Apple Valley has 13 medical office buildings, 12 of which are single tenant and one--Apple Valley Professional Building--is multi-tenant. This building is competitive with other Dakota County multi-tenant medical buildings. Medical office buildings are shown on Map 2-6. Map 2-6 MEDICAL OFFICE BUILDINGS j__j Office Medical Pro•mr$ Ofke Merkel 0 i 2 ;e r= 1,97 inaes • Copyright 2013 McComb Group, Ltd 01 2-15 Apple Valley Medical Office Buildings Apple Valley medical office buildings total over 220,000 square feet, as shown in Table 2-12. Most of these are smaller professional buildings under 10,000 square feet. Only three are significant relative to potential business park demand for Apple Valley. These are Health Partners Medical/Dental, Fairview Cedar Ridge Clinic, and Apple Valley Medical Center. These three buildings, with 40,000 square feet to 60,000 square feet, represent over 70 percent of the total medical office facilities in Apple Valley. Source: United P roperties Building Table 2-12 APPLE VALLEY MEDICAL OFFICE BUILDINGS Apple Valley Professional Building 1974 13,120 Dakota Pediatric Clinic 1974 2,731 Advanced Chiropractic 1979 4,561 Health Partners M ed/Dent Clinic 1981 41,713 Apple Valley Medical Center 1986 61,634 Biewald Orthodontics 1990 7,917 Fairview Cedar Ridge Clinic 1994 55,836 M edical/Dental Office 1996 2,428 Brite Smiles Dental 1997 3,734 Shelley Wakefield DDS 1998 5,463 Bakken Professional Building 2000 9,465 Dalseth Dental 2001 5,375 Apple Valley Eye Clinic 2003 6,720 Total 220,697 Source: Dakota County. Co Star Group Mncar, and McComb Gro up, Ltd. Multi-Tenant Medical Office Buildings Occupied space in multi-tenant medical office buildings in competitive cities has increased modestly; while vacancy rates declined from 13.9 percent in 2007 to 9.6 percent in 2011. In the Southeast Region, occupied space in multi-tenant medical office buildings increased by 97,500 square feet, while the vacancy rate decline from 15.2 percent to 13.3 percent between 2007 and 2011. While this performance is low, it is better than any other business park category in the submarket. Apple Valley Total Space 13,120 Competitive Cities Total Space 441,088 Occupied Space 379,714 Vacant Space 61,374 Vacancy Rate 13.9 % Southeast Total Space 1,530,245 Occupied Space 1,297,821 Vacant Space 232,424 Vacancy Rate 15.2 % Table 2-13 MULTI-TENANT MEDICAL OFFICE TOTAL, OCCUPIED, AND VACANT SPACE; 2007 TO 2011 2007 2008 2009 2010 2011 13,120 13,120 422,819 361,901 60,918 14.4 % 1,561,342 1,335,709 225,633 14.5 % 2-16 455,619 390,864 64,755 14.2 % 1,609,061 1,372,541 236,520 14.7 % Year Square Opened Feet 13,120 13,120 455,619 405,351 50,268 11.0 % 1,609,061 1,393,700 215,361 13.4 % 455,619 411,814 43,805 9.6 % 1,609,061 1,395,352 213,709 13.3 % Apple Valley Professional Building net rent is approximately $20.00 per square foot with expenses and taxes totaling $9.00 per square foot. Burnsville provides over 90,000 square feet of multi-tenant medical office space in two buildings, Oak Ridge East Professional Building and Ridgepoint Medical, as shown in Table 2- 14. Rent for Ridgepoint Medical ranges from $16.00 per square foot to $17.00 per square foot with expenses of $8.68 per square foot and taxes of $4.63 per square foot. This building has a vacancy rate of almost 30 percent, while Oak Ridge East Professional's vacancy rate is 5.3 percent. MULTI-TENANT MEDICAL OFFICE BUILDINGS Name APPLE VALLEY Apple Valley Professional Building 13,120 BURNSVILLE Oak Ridge East Professional Bldg Ridgepoint Medical Subtotal EAGAN 1215 Town Centre Dr Town Centre Plaza 1121 Town Centre Subtotal LAKEVILLE Cedar Ave Prof Building Lakeville Professional Plaza Subtotal Table 2-14 2-17 Total Sq. Ft. 52,391 38,199 90,590 32,800 44,383 18,900 96,083 25,000 16,000 41,000 INVER GROVE HEIGHTS Inver Grove Heights Prof Building 53,500 TOTAL 294,293 Source: Greater MSP , United P ro perties , Co mmercialRealEs tate Minnesota Eagan has the most multi-tenant medical office buildings within the Dakota County study area with three buildings totaling over 96,000 square feet. These buildings range in size from 18,900 to 44,383 square feet and are all located in the same area on Town Center Drive. Average rent is about $15.25 per square foot with expenses ranging from $2.74 per square foot to $3.91 per square foot and taxes ranging from $2.79 per square foot to $4.80 per square foot. Lakeville has two multi-tenant medical office buildings for a total of 41,000 square feet. Rent for each of these buildings is $16.00 per square foot. Both of these buildings were built in the early 2000's. Vacancy in 2011 was 18.6 percent for the Cedar Avenue building and 23.7 percent for Lakeville Professional Plaza. Inver Grove Heights has one multi-tenant medical office building, a 53,500 square foot building with rent of $18.50 per square foot, expenses of $4.34 per square foot, and taxes of $3.10 per square foot. Vacancy in 2011 was 34.4 percent. Proposed Multi-Tenant Medical Office Space There are three proposed multi-tenant medical office buildings within the Dakota County study area: a 45,000 square foot building in Lakeville, 24,000 square feet in Mendota Heights, and 9,700 square feet in Rosemount. Estimated rent ranges from $19.50 per square foot to 22.50 per square foot. PROPOSED MULTI-TENANT MEDICAL OFFICE BUILDINGS LAKEVILLE Lakeville Medical Office Name MEND 0 TA HEIGHTS Mendota Hts Specialty Care Cntr Table 2-15 Total Sq. Ft. 24,000 45,000 RO S EMOUNT Rosemount Village Medical Office 9,700 Source: Greater MSP , United P roperties, Co mmercialRealEstate Minnesota 2-18 Chapter III EMPLOYMENT AND ECONOMIC BASE The demand for business park development is related to employment growth in those business categories that typically occupy office, office showroom, and office warehouse buildings. This chapter addresses employment trends in Apple Valley and Dakota County and the types of businesses that choose to locate in Apple Valley. Employment by Industry Compared to the nation, the seven-county metropolitan area has a high concentration of corporate headquarters companies. This sector, described as the Management of Companies and Enterprises in Figure 3-1, is also relatively large compared with other sectors in the Twin Cities metro, and it demonstrated competitive growth compared to the nation — growing nearly 100 percent faster than similar types of companies during the period 2005 to 2010. The Computer and Electronic Product Manufacturing sector, another large and highly concentrated sector in the Twin Cities metro area grew much more slowly than other firms in this sector nationally during this same time period. Other industry sectors in the Twin Cities that are highly concentrated compared to the nation grew at a rate close to the national average. Figure 3-1 ce c Corn puter and Electronic 4.) c 0 E 0 a. E tu -200% Employment Size, Growth and Concentration for the Top Ten Industr es According to Employment Concentration, Twin Cities 3.6 Product Mfg I. National employment concentration -150% -100% Q uarterly Census of Employment and Wages 2005-2010 ISPs, Search Portals, & Data Processing Fabricated Metal Produc Manufacturing Lessors, Nortfirtancial Intantlible Assets Miscellaneous .0 Manufacturing Air Transportation Publishing Industries Fina cial Investment & Related Activity -60% (Irk 60% 100% 160% Competitive Grovvth 2005-2010 Figure 3-2 reveals that two of the 10 most highly concentrated industry groups in the seven- county metro also show up as significant in Dakota County — Computer and Electronic Product Manufacturing, and Publishing Industries. The Publishing Industry segment is nearly seven times (6.71 percent) more concentrated in Dakota County than it is in the nation and it demonstrated stronger growth than the nation during the 2005 to 2010 timeframe (24 percent). Average employment in the sector employer was 6,796 in 2010. Thomson Rueters/West, located in Eagan, is a significant employer in this industry group. Employment in the Computer and Electronic Product Manufacturing averaged 2,991 in Dakota County in 2011, but employment in this sector is not located in Apple Valley. Three other strong segments in Dakota County — Truck Transportation and Wholesalers (Durable and Non-Durable) are concentrated in areas with access to the interstate system. Figure 3-2 0 0 eg 5 Cred inter R iated 4 0% Employment Size, Growth and Concentration for the Top Ten Industries According to Size, Dakota County - 2005-2010 Computer and Electronic Prod uct Mfg -200% Professional and technical Services Nursing and Residential 4 Care Facilities Specialty Trad Contractors Truck Transportation Merchant Wholesalers, Nondurable Goods Merchant Wholesalers, Durable Goods Competitive Growth 2005-2010 stdes 100% Economic Development Services, Inc./Quarterly Census of Employment and Wages, 2005-2010 Two large industry segments in Dakota County that are less dependent on the interstate system, Professional and Technical Services with an average annual employment of 7,821 in 2010 and Ambulatory Health Care Services with average annual employment of 6,720 in 2010, are also shown in Figure 3-2. Figure 3-3 reveals that the wage rate in Professional, Technical, and Managerial Services in 2010 is one of the highest in the county. In fact it averaged $75,608. Another sector less dependent upon good interstate access, Ambulatory Health Care Services had an average wage of $50,128 in 2010, as shown in Figure 3-3. 3-2 Figure 3-3 8 2 - Employment Size, Concentration and Wages for the Top Ten Industries According to Size, Dakota County 2010 Nursing a Care $10,000 $20,000 $30, Average Annual Wage Merchant Wholesalers, Durable Goods Truck Transportation Specialty Trade Ambulatory Health Contractors Care Services $60,000 $70, Economic Development Services, Inc./Quarterly Census of Employment and Wages, 2010 Insurance Carriers & Related Activities d Residential acilities Merchant Wholesalers, Professional & Nondurable Goods Technical Service 90,000 Employment by industry in Apple Valley, Dakota County, and the Eleven-County Minneapolis- St. Paul Metropolitan Statistical Area (MSA) is shown in Table 3-1 for 2010. Apple Valley employment was 13,714 in 2010 or 0.89 percent of the MSA employment and 8.16 percent of Dakota County's employment. This table highlights in yellow those business categories where Apple Valley's share of employment is above that of the MSA and Dakota County. For example, Retail Trade employment in Apple Valley is 2.22 percent of the MSA employees in that category, two and one-half times the rate for all employees. Apple Valley Retail Trade employment is also double the percentage for Dakota County's total employment. This is not unexpected given the large retail concentration that exists in Apple Valley. The other categories where Apple Valley's proportion of employment is above the MSA and Dakota County include Educational Services; Arts, Entertainment, and Recreation; Accommodation and Food Services; Other Services; and Public Administration. Health Care and Social Assistance employment is about 25 percent below the MSA percentage, but similar to the Dakota County percentage. Areas where Apple Valley employment is below the MSA and Dakota County averages include Information, Finance and Insurance, Management of Companies and Enterprises, and Administrative. Table 3-1 EMPLOYMENT BY INDUSTRY; 2010 APPLE VALLEY, DAKOTA COUNTY, AND MSA Apple Dakota % of % of Industry Valley County MSA MSA Dakota Co Total, All Industries 13,714 168,087 1,532,801 0.89 % 8.16 Manufacturing 530 17,728 156,470 0.34 2.99 Wholesale Trade 154 9,085 74,988 0.21 1.70 Retail Trade 3,384 20,897 152,728 2.22 16.19 Transportation and Warehousing 93 13,035 60,496 0.15 0.71 Information 190 8,476 40,816 0.47 2.24 Finance and Insurance 600 9,564 103,190 0.58 6.27 Real Estate and Rental and Leasing 222 2,890 27,579 0.80 7.68 Professional and Technical Services 378 7,894 95,972 0.39 4.79 Management of Companies and Enterprises 35 2,622 62,461 0.06 1.33 Administrative 202 6,830 89,678 0.23 2.96 Educational Services 2,633 14,047 125,174 2.10 18.74 Health Care and Social Assistance 1,472 17,651 216,331 0.68 8.34 Arts, Entertainment, and Recreation 507 2,726 27,854 1.82 18.60 Accommodation and Food Services 1,771 13,726 120,326 1.47 12.90 Other Services, Ex. Public Admin 473 NA, 52,136 0.91 NA Public Administration 785 5,323 67,409 1.16 14.75 Source: M innesota Department of Employment and Economic Development. 2007 Census of Business Apple Valley business establishments identified in the 2007 Census of Business are contained in Table 3-2. This table contains number of establishments, sales, payroll, and paid employees for the pay period including March 12, 2007. The largest employment categories are Ambulatory Health Care Services and Manufacturing. Businesses that would typically occupy business park type buildings are highlighted in yellow and demonstrate the diversity of Apple Valley's business base. Professional, Scientific, and Technical Services is the largest category with 156 establishments. Legal Services include 12 legal offices and six Other Legal Services with a total of 95 employees. Architectural, Engineering, and Related Services are represented by 10 establishments. Computer System Design and Related Services has 55 establishments. Custom Computer Programming Services has 34 establishments and 15 establishments providing Computer System Design Services. Management, Scientific and Technical Consulting Services includes 32 establishments with 28 of those firms engaged in Management Consulting Services. Advertising, Public Relations, and Related Services account for 10 establishments. Administrative and Support is represented by 45 establishments with 41 of those offering Administrative and Support Services. Seven establishments offer Business Support Services. Ambulatory Health Care Services is a significant category with 72 establishments including Offices of Physicians, Dentists, Other Health Practitioners, Chiropractors, and Mental Health Practitioners. The 2007 Census of Business demonstrates that Apple Valley has important clusters of establishments in Manufacturing, Professional and Management Services, and Ambulatory Health Care. App le Valley Source: U.S. Census Bureau. Table 3-2 APPLE VALLEY ESTABLISHMENTS, SALES, PAYROLL AND EMPLOYEES 2007 CENSUS OF BUSINESS Number of p aid Annual employ ees for p ay Sales Pay roll period including Industry # Est ($1,000) ($1,000) March 12 31-33 Manufacturing 16 D $27,556 551 42 'Wholesale trade 33 $106,513 8,025 170 423 Merchant wholesalers, durable goods 18 27,786 3,524 78 424 Merchant wholesalers, nondurable goods 15 78,727 4,501 92 54 Professional, scientific, and technical services 156 D I) e 5411 Legal services 18 12,101 5,298 95 54111 Offices of lawy ers 12 7,972 4,361 72 54119 Other legal services 6 4,129 937 23 5412 Accounting tax preparation, bookkeeping and payroll services 15 3,410 1,236 62 5413 Architectural, engineering, and related services 10 D D b 5415 Computer systems design and related services 53 21,895 8,097 113 541511 Custom computer programming services 34 10,222 4,045 69 541512 Computer systems design services 15 D D b 5416 Management, scientific, and technical consulting services 32 8,252 2,854 66 54161 Management consulting services 28 7,456 2,570 61 5418 Advertising, public relations, and related services 10 7,139 1,880 32 54194 Veterinary services 4 5,932 2,598 80 56 Administrative and support 45 19,772 7,277 291 561 Administrative and support services 41 D D e 5614 Business support services 7 D D b 621 Ambulatory health care services 72 98,306 33,375 786 6211 Offices of phy sicians 10 30,577 11,946 326 621111 Offices of physicians (except mental health specialists) 8 D D e 6212 Offices of dentists 26 44,286 13,766 232 6213 Offices of other health practitioners 28 10,494 3,306 95 62131 Offices of chiropractors 17 3,079 852 36 62133 Offices of mental health practitioners except physicians) 6 2,731 823 21 Employment Profile Worker age and earnings in Apple Valley differ from Dakota County and the MSA, as shown in Table 3-3. Apple Valley has a higher proportion of workers 29 or younger (28.7 percent) and a lower proportion of workers age 30 to 54 (52.4 percent). Workers age 55 or older (18.8 percent) are slightly higher than Dakota County or the MSA. The difference between Apple Valley and Dakota County and the MSA is even greater in job earnings. Jobs paying $1,250 or less represent 35.4 percent of Apple Valley jobs compared to 25.0 percent in Dakota County and 23.8 percent in the MSA. Jobs earning in the middle category ($1,251 to $3,333 per month) are similar in all three areas. Jobs paying $3,333 or more per month are 33.5 percent of Apple Valley jobs compared to 43.4 percent in Dakota County and 46.0 percent in the MSA. The proportion of Dakota County jobs paying $3,333 per month or more is 30 percent higher than Apple Valley. This is a reflection of Apple Valley's high concentration of employment in retail trade as well as the MSA's strength in corporate headquarters facilities. Total All Jobs Source: U.S. Census Bureau. Table 3-3 WORKER PROFILE: AGE AND EARNINGS; 2010 APPLE VAT J ,EY, DAKOTA COUNTY, AND MSA Apple Valley Dakota County MSA Number Percent Number Percent Number Percent 13,644 100.0 % 167,433 100.0 % 1,668,911 100.0 % Jobs by Worker Age Age 29 or younger 3,922 28.7 % 42,088 25.1 % 413,777 24.8 % Age 30 to 54 7,153 52.4 96,823 57.8 965,514 57.9 Age 55 or older 2,569 18.8 28,522 17.0 289,620 17.4 Jobs by Earnings $1,250 per month or less 4,827 35.4 % 41,928 25.0 % 397,624 23.8 % $1,251 to $3,333 per month 4,250 31.1 52,766 31.5 502,779 30.1 More than $3,333 per month 4,567 33.5 72,739 43.4 768,508 46.0 Employment Inflow and Outflow Labor inflow and outflow, shown in Table 3-4, reports the number of workers who commute into and out of Apple Valley and Dakota County and those that live and work in each area. This data was compiled by the United States Census Bureau for 2009. Table 3-4 LABOR INFLOW AND OUTFLOW; 2009 APPT F, VAT T ,EY AND DAKOTA COUNTY Apple Valley Dakota County Characteristic Number Percent Number Percent Labor Force Inflow and Outflow Living in the City/County 26,849 100.0% 210,811 100.0% Living and Employed in the City/County 3,094 11.5% 77,711 36.9% Living in the City/County but Employed Outside 23,755 88.5% 133,100 63.1% Employment Inflow and Outflow Employed in the City/County 13,683 100.0% 164,524 100.0% Employed and Living in the City/County 3,094 22.6% 77,711 47.2% Employed in the City/County but Living Outside 10,589 77.4% 86,813 52.8% Source: U.S. Census Bureau. Labor force inflow and outflow identifies work location based on employee's home location. Only 11.5 percent of the Apple Valley labor force both live and work in the city. Dakota County, on the other hand due to its size, has more residents (36.9 percent) that both work and live in Dakota County. Employment inflow and outflow identifies the number of employees that both live and work in Apple Valley and Dakota County and the number that work in Apple Valley or Dakota County and those that live outside these areas. Apple Valley has 13,683 people that are employed, 22.6 percent of them live and work within Apple Valley; while the remainder (77.4 percent) work in Apple Valley and live outside of the city. In Dakota County, almost half of the employees (47.2 percent) live and work within the county and the others work in Dakota County and live outside of the county. A large portion of Apple Valley residents (88.5 percent) commute to jobs outside the city; while 77.4 percent of the Apple Valley employees live outside the city. Demographic Characteristics Labor inflow and outflow are also shown by demographic characteristic for both Apple Valley and Dakota County in Table 3-5. This data breaks down the outflow, inflow, and interior jobs by age, income, and industry. Interior jobs represent employees that both live and work in either Apple Valley or Dakota County. Interior Apple Valley residents employed in the city: • Tend to be younger and older than those in Dakota County. • Earn less money with 42.4 percent of the employees earning $1,250 per month or less compared to 28.9 percent in Dakota County. Apple Valley has a smaller proportion of employed residents earning $3,333 per month than Dakota County-27.9 percent and 39.6 percent, respectively. • Hold jobs in service industries, 70.9 percent compared to 64.2 percent in Dakota County. Goods producing employment in Apple Valley is 3.6 percent compared to 14.3 percent in Dakota County. Outflow jobs represent residents of Apple Valley or Dakota County that are employed outside those areas. Significant findings include: • The age distribution of outflow jobs is similar for Apple Valley and Dakota County. • The distribution of worker earnings is similar for Apple Valley and Dakota County. • The distribution of workers by industry is generally similar in Apple Valley and Dakota County. Inflow jobs represent workers that live somewhere else, but work in either Apple Valley or Dakota County. Significant findings include: • Apple Valley (30.0 percent) has a larger proportion of workers age 29 or under than Dakota County (25.8 percent). • Apple Valley has a higher proportion of lower paid inflow workers than Dakota County. Workers in the $1,250 per month or less and the $1,251 to $3,333 per month categories totaled 76.2 percent compared to 51.6 percent in Dakota County. • Apple Valley has fewer inflow workers employed in goods producing industries than Dakota County. Almost three-quarters (71.8 percent) of Apple Valley inflow workers are employed in the all other services categories compared to 56.2 percent in Dakota County. Table 3-5 LABOR INFLOW AND OUTFLOW; 2009 APPI E VALT EY AND DAKOTA COUNTY BY AGE, INCOME, AND INDUSTRY Apple Valley Dakota County Job Characteristic Number Percent Number Percent By Age Workers Aged 29 or younger Outflow 5,649 23.8% 32,538 24.4% Inflow 3,176 30.0% 22,423 25.8% Interior 846 27.3% 20,095 25.9% Workers Aged 30 to 54 Outflow 13,949 58.7% 79,764 59.9% Inflow 5,610 53.0% 51,061 58.8% Interior 1,606 51.9% 44,087 56.7% Workers Aged 55 or older Outflow 4,157 17.5% 20,798 15.6% Inflow 1,803 17.0% 13,329 15.4% Interior 642 20.7% 13,529 17.4% By Income Workers Earning $1,250 per month or less Outflow 5,203 21.9% 28,332 21.3% Inflow 3,576 33.8% 19,724 22.7% Interior 1,311 42.4% 22,440 28.9% Workers Earning $1,251 to $3,333 per rnonth Outflow 6,651 28.0% 36,349 27.3% Inflow 1,311 42.4% 22,440 28.9% Interior 919 29.7% 24,486 31.5% Workers Earning More than $3,333 per month Outflow 11,901 50.1% 68,419 51.4% Inflow 3,560 33.6% 38,917 44.8% Interior 864 27.9% 30,785 39.6% By Industry Workers in the "Goods Producing" Industry Class Outflow 2,837 11.9% 14,562 10.9% Inflow 609 5.8% 17,088 19.7% Interior 110 3.6% 11,088 14.3% Workers in the "Trade, Transportation, and Utilities" Industry Class Outflow 5,507 23.2% 28,532 21.4% Inflow 2,379 22.5% 20,958 24.1% Interior 790 25.5% 16,756 21.6% Workers in the "All Other Services" Industry Class Outflow 15,411 64.9% 90,006 67.6% Inflow 7,601 71.8% 48,767 56.2% Interior 2,194 70.9% 49,867 64.2% Source: U.S. Census Bureau - Local Employment Dynamics (On The Map). The truly significant differences are that interior jobs and inflow jobs are lower paying and more heavily concentrated in service industries than for Dakota County. This is a reflection of Apple Valley's large number of retail and service establishments. Apple Valley should seek to use its vacant and under-developed area to encourage industries with higher paying jobs. Work Location Apple Valley and Dakota County residents generally work in the same cities, as shown in Table 3-6. The largest proportions of Apple Valley and Dakota County residents work in Minneapolis, 12.2 and 11.7 percent, respectively. Apple Valley ranked second as a work location for city residents. Other cities where Apple Valley residents work include: Eagan (9.6 percent), Bloomington (8.8 percent), and Burnsville (8.6 percent). Almost 70 percent of Apple Valley residents are employed in 10 communities. WORK LOCATION OF APPLE VALLEY AND DAKOTA COUNTY RESIDENTS; 2009 TOP TEN COMMUNITIES Minneapolis 3,271 12.2 % 24,756 11.7 Apple Valley 3,094 11.5 9,041 4.3 Eagan 2,582 9.6 19,353 9.2 Bloomington 2,350 8.8 15,021 7.1 Burnsville 2,296 8.6 13,543 6.4 St. Paul 1,672 6.2 22,005 10.4 Edina 1,116 4.2 6,873 3.3 Lakeville 856 3.2 7,462 3.5 Eden Prairie 671 2.5 4,991 2.6 Minnetonka 567 2.1 N/A N/A Hastings N/A N/A 5,422 2.6 All Other Locations 8,374 31.2 82,342 39.1 Source: U.S. Census Bureau. Residence Location Work Location Table 3-6 Apple Valley Dakota County Count Share Count Share Apple Valley and Dakota County generally draw their employees from the same cities, as shown in Table 3-7. Of the top 10 cities where Apple Valley workers reside, Dakota County accounts for 64 percent. Minneapolis, St. Paul, and Bloomington account for 9.4 percent of the workers. The top nine communities account for about half of Dakota County workers. Table 3-7 RESIDENCE LOCATION OF APPT F VALLEY AND DAKOTA COUNTY EMPLOYEES; 2009 TOP NINE COMMUNITIES Residence Location Apple Valley 3,094 22.6 % 10,618 6.5 % Lakeville 1,477 10.8 10,961 6.7 Eagan 1,285 9.4 12,568 7.6 Burnsville 1,091 8.0 10,626 6.5 Rosemount 760 5.6 4,240 2.6 Farmington 566 4.1 4,264 2.6 Minneapolis 528 3.9 7,770 4.7 St. Paul 421 3.1 10,969 6.5 Bloomington 329 2.4 Inver Grove Heights 199 1.5 5,834 3.5 All Other Locations 3,934 28.7 81,266 49.4 Source: U.S. Census Bureau, OnTheMap Application and LEHD. Educational Attainment Apple Valley Dakota County Count Share Count Share Apple Valley and the MSA have similar proportions of residents with graduate degrees (12.8 percent) compared to 10.9 percent nationally, as shown in Figure 3-4. More Apple Valley residents have bachelor's and associate's degrees, 29.1 percent and 10.3 percent, respectively, than both the MSA and United States. Figure 3-4 Apple Valle 11 County Metro Area US 0% Less than H.S. Some College Bachelors Degree 10% Educational Attainment, 2011 20% 30% 40% 50% 6 High School Diploma On y ki Associate Degree Graduate Degree *NO* . '"1.24fig.arz4441.014.. 1111111110 60% 70% 80% 90% 100% Job Creation Changes in employment from year to year can mask employment changes that are occurring within each industry category. Minnesota Department of Employment and Economic Development (DEED) prepares a report that keeps track of total employment, net job flows, job creation, new hires, separations, and turnover. What is significant in this database is the job creation line, which indicates employees hired to fill a new job position. This could be a new position in an existing company or employment by a new company. This information is available from 2000 to 2010 for 105 industries. Industries in this report were reviewed and are contained in Table 3-8, and those that represent companies that could consider Apple Valley as a location were selected for evaluation. Table 3-8 EMPLOYMENT CHANGE AND JOB CREATION SELECTED INDUSTRIES: 2000 TO 2007 AND 2008 TO 2010 Industry Computer and Electronic Product Manufacturing Dakota County (217) 1,272 92 297 Minneapolis/St. Paul MSA (7,518) 11,359 (6,483) 4,773 Miscellaneous Manufacturing Dakota County (284) 400 (167) 87 Minneapolis/St. Paul MSA (1,165) 4,425 1,261 1,412 Publishing Industries (Except Internet) Dakota County 548 432 165 45 Minneapolis/St. Paul MSA (1,044) 4,131 142 853 Data Processing, Hosting and Related Services Dakota County (310) 251 (42) 40 Minneapolis/St. Paul MSA (4,329) 2,424 (1,388) 513 Other Information Services Dakota County 416 145 (23) 29 Minneapolis/St. Paul MSA (37) 1,059 (136) 328 Insurance Carriers and Related Activities Dakota County 1,370 960 (227) 586 Minneapolis/St. Paul MSA 6,309 11,530 1,607 2,642 Professional, Scientific, and Technical Services Dakota County 4,042 3,228 (3,194) 1,401 Minneapolis/St. Paul MSA 1,535 43,843 (6,267) 16,331 Management of Companies and Fnterpris es Dakota County (1,475) 954 (991) 716 Minneapolis/St. Paul MSA (24,245) 23,035 (9,871) 9,231 Administrative and Support Services Dakota County 1,866 3,348 (1,200) 2,003 Minneapolis/St. Paul MSA (4,170) 43,354 (8,782) 25,375 * Second Quarter. Source: Minnesota Department of Employment and Economic Development. 2000-2007 2008-2010* Employment Job Employment Job Change Creation Change Creation The objective was to determine change in total employment during the period 2000 to 2007, which began with the peak of the previous economy cycle and ended with the peak of the last economic cycle. The second period, from 2008 to 2 quarter 2010, included the great recession. Using Computer and Electronic Product Manufacturing as an example, total employment between 2000 and 2007 declined by 217, but 1,272 new jobs were created by that industry category in Dakota County. During the recessionary period, total employment increased by 92 jobs and 297 new jobs were created. In the MSA, job creation was even more dramatic. Between 2000 and 2007, total employment declined by 7,518 positions, while 11,359 new jobs were created. Between 2008 and 2010, total employment declined by 6,483, and 4,773 jobs were created. The comparisons are similar for the other categories. Health care is an obvious growth industry and is likely to continue to expand. Job creation in this category is closely related to total employment change, as shown in Table 3-9. Ambulatory Health Care is the overall category for individual categories in the table. In Dakota County, employment increased by 2,552 between 2000 and 2007. Job creation represented 1,711 of that employment increase. In the more recent period, total employment change was 372 and job creation was 735. The relationship between employment change in the MSA is even more dramatic. Industry Table 3-9 EMPLOYMENT CHANGE AND JOB CREATION HEALTH CARE: 2000 TO 2007 AND 2008 TO 2010 Ambulatory Health Care Services Dakota County 2,552 1,711 372 735 Minneapolis/St. Paul MSA 17,913 17,185 1,255 7,858 Offices of Physicians Dakota County 444 442 439 164 Minneapolis/St. Paul MSA 5,785 5,532 (553) 2,258 Offices of Dentists Dakota County 340 436 (157) 134 Minneapolis/St. Paul MSA 1,084 2,947 (267) 1,048 Offices of Other Health Practitioners Dakota County 473 368 84 170 Minneapolis/St. Paul MSA 1,578 3,001 542 1,250 Medical and Diagnostic Laboratories Dakota County 18 33 6 13 Minneapolis/St. Paul MSA 184 248 169 139 * Second Quarter. Source: Minnesota Department of and Economic Development. Employment Job Employment Job Change Creation Change Creation To the extent that job creation is occurring in businesses that are growing or in new companies, this is an opportunity for a business relocation or a new business location. Capitalizing on this 3-12 2000-2007 2008-2010* information requires a new approach to business development that find a way to identify those businesses that are creating jobs. Future Employment Future estimates of employment in the Seven-County Metropolitan Area (Metro Area) by NAICS categories were prepared for the period 2009 through 2019 by the Minnesota Department of Employment and Economic Development (DEED). These estimates project total employment to increase from 1,685,505 in 2009 to 1,829,604 in 2019, an increase of 144,099 or 8.5 percent, as shown in Table 3-10. These projections include full- and part-time jobs and not the number of employed persons. This information is the best available to indicate those business categories where employment is expected to increase generating demand for additional building area. Estimates are prepared for industrial categories by North American Industrial Classification System Code (NAICS) to the seven-digit level. The Goods-Producing Domain is expected to decline by 3.1 percent; while the Service-Providing Domain is expected to increase by 9.9 percent. Construction is the only bright spot in the Goods-Producing Domain, estimated to increase 18.2 percent. Within the Service-Providing Domain, all categories except Information, are estimated to have increased employment. It is the Service-Providing Domain that provides the greatest opportunity for employment growth in Apple Valley. Table 3-10 EMPLOYMENT OUTLOOK; 2009 TO 2019 SEVEN-COUNTY MINNEAPOLIS-ST. PAUL, MN 2009 2019 NAICS Estimate Year Projected Year % Total Code Title Employment Employment Change Change 0 Total, All Industries 1,685,505 1,829,604 8.5 144,099 101 Goods-Producing Domain 216,653 210,006 (3.1) (6,647) 1011 Natural Resources and Mining 3,664 3,513 (4.1) (151) 1012 Construction 51,280 60,617 18.2 9,337 1013 Manufacturing 161,709 145,876 (9.8) (15,833) 102 Service-Providing Domain 1,389,934 1,527,660 9.9 137,726 1021 Trade, Transportation and Utilities 297,920 302,383 1.5 4,463 1022 Information 40,236 38,843 (3.5) (1,393) 1023 Financial Activities 132,755 142,315 7.2 9,560 1024 Professional and Business Services 250,931 289,249 15.3 38,318 1025 Education and Health Services 338,755 402,320 18.8 63,565 1026 Leisure and Hospitality 148,501 162,615 9.5 14,114 1027 Other Services 74,461 80,225 7.7 5,764 1028 Public Administration 106,375 109,710 3.1 3,335 Source: Department of Employment and Economic Development. Future employment growth in business categories suitable for a business park in Apple Valley are contained in Table 3-11 and represent a wide variety of businesses. These categories represent businesses or industries that would be suitable for business park location in Apple Valley and represent a wide range of business types. Employment in these categories is expected 3-13 to grow from 370,537 to 426,599 in 2019, a 15 percent increase. Businesses in these categories are likely to be seeking additional space in the future. Apple Valley has clusters of businesses in some of these categories, as was shown in Table 3-2. NAICS Code Title Manufacturing 3252 Resin, Rubber, and Synthetic Fibers 187 221 18.2 % 34 3254 Pharmaceutical & Medicine Manufacturing 3,089 3,650 18.2 561 3345 Electronic Instrument Manufacturing 23,886 25,875 8.3 1,989 3359 Other Electrical Equipment & Components 628 700 11.5 72 3391 Medical Equipment and Supplies Mfg 14,301 16,600 16.1 2,299 3399 Other Miscellaneous M anufacturing 3,316 3,800 14.6 484 Wholesale Trade 425 Electronic Markets and Agents/Brokers 19,796 22,020 11.2 2,224 Transportation and Warehousing 4885 Freight Transportation Arrangement 2,053 2,267 10.4 214 Information 5112 Software Publishers 5,132 6,100 18.9 968 518 ISPs, Search Portals, & Data Processing 6,165 7,413 20.2 1,248 5182 Data Processing and Related Services 6,165 7,413 20.2 1,248 519 Other Information Services 1,138 1,553 36.5 415 Finance and Insurance 5241 Insurance Carriers 36,641 37,400 2.1 759 5242 Insurance Agencies, Brokerages & Support 13,495 15,920 18.0 2,425 Real Estate 5311 Lessors of Real Estate 9,306 10,544 13.3 1,238 5312 Offices of Real Estate Agents & Brokers 3,608 4,263 18.2 655 5313 Activities Related to Real Estate 8,958 10,703 19.5 1,745 533 Lessors, Nonfinancial Intangible Assets 1,150 1,490 29.6 340 Professional and Technical Services 5411 Legal Services 15,354 16,423 7.0 1,069 5412 Accounting and Bookkeeping Services 10,852 12,350 13.8 1,498 5413 Architectural and Engineering Services 14,731 16,500 12.0 1,769 5415 Computer Systems Design and Rel Services 25,003 31,020 24.1 6,017 5416 Management & Technical Consulting Svc 11,799 19,300 63.6 7,501 5417 Scientific Research and Development Svc 5,737 6,742 17.5 1,005 5418 Advertising and Related Services 8,388 8,690 3.6 302 5419 Other Professional & Technical Services 8,661 11,244 29.8 2,583 Management 55 Management of Companies and Enterprises 62,471 66,800 6.9 4,329 Administrative and Support Services 5611 Office Administrative Services 3,441 3,982 15.7 541 5613 Employment Services 35,347 42,960 21.5 7,613 Education 6114 Business, Computer & Management Training 1,256 1,310 4.3 54 6115 Technical and Trade Schools 977 1,023 4.7 46 6116 Other Schools and Instruction 5,366 7,505 39.9 2,139 6117 Educational Support Services 2,140 2,818 31.7 678 Count 33 33 Total 370,537 426,599 15.1 % 56,062 Source: Department of Employment and Economic Development. Table 3-11 EMPLOYMENT OUTLOOK; 2009 TO 2019 SEVEN-COUNTY MINNEAPOLIS-ST. PAUL, MN 3-14 2009 2019 Estimate Year Projected Year Total Employment Employment Change Change Health care is an area that is expected to grow rapidly during the 2009 to 2019 period, as shown in Table 3-12. The estimated increases in employment in this category range from 11.6 percent to 55.8 percent. The fastest growing category is Medical and Diagnostic Laboratories. Other categories with significant growth prospects are Offices of Physicians, Home Health Care Services, and Ambulatory Health Care Services; all of which are expected to grow at greater than 30 percent over the 10-year period. Health Care NAICS Code Title Ambulatory Health Care Services 6211 Offices of Phy sicians 6212 Offices of Dentists 6213 Offices of Other Health Practitioners 6214 Outpatient Care Centers 6215 Medical and Diagnostic Laboratories 6216 Home Health Care Services 6219 Other Ambulatory Health Care Services 622 Hospitals 623 Nursing and Residential Care Facilities 6231 Nursing Care Facilities 6232 Residential Mental Health Facilities 6233 Community Care Facility for the Elderly 6239 Other Residential Care Facilities Total Source: Department of Employment and Economic Development. Table 3-12 HEALTH CARE EMPLOYMENT OUTLOOK; 2009 TO 2019 SEVEN-COUNTY MINNEAPOLIS-ST. PAUL, MN 2009 2019 Estimate Year Projected Year Total Employment Employment Change Change 26,286 34,760 32.2 9,528 11,670 22.5 6,627 7 15.5 6,687 10,372 55.1 1,398 2,178 55.8 10,929 14,732 34.8 4,617 6,135 32.9 53,917 61,648 14.3 43,571 50,006 14.8 20,281 22,771 12.3 13,630 15,212 11.6 7,559 9,293 22.9 2,101 2,730 29.9 207,131 8,474 2,142 1,030 3,685 780 3,803 1,518 7,731 6,435 2,490 1,582 1,734 629 249,164 20.3 % 42,033 Chapter IV BROKER INTERVIEWS Over 35 commercial real estate brokers with a history of working within the study area were contacted. Nineteen respondents were interviewed. The responses and questionnaire are found in Appendix A. A summary of the findings are as follows: • Eighteen of the 19 respondents, which included one developer, have worked in the Apple Valley area. • Eleven respondents stated they had worked with the City of Apple Valley and had a good or very good experience. • Many respondents, when asked about trends in the market in the next 15 years related to Apple Valley and the Hanson Site, suggested a variety of uses ranging from headquarters facilities, light industrial, and multi-family. However, most respondents suggested light industrial that didn't require immediate access to major transportation corridors as the best use. • Retail has been successful, and if allowed more retail would locate in Apple Valley. However, marketing to manufacturing, high technology, and larger companies simply has not been successful in the past. Most respondents continued to refer to Apple Valley being off the main transportation corridors and a few felt real estate taxes were higher in Apple Valley than the surrounding area. • Apple Valley differs from other areas of Dakota County in that the city seems secondary to Burnsville for retail and Eagan for large successful companies. It is evident that the city does not have any planned business and industrial parks like most cities. • Users that may find the area attractive in the next 10 to 15 years will be high technology as other parts of the south metro fill up. In addition, the commute will continue to be more costly and time consuming to go downtown even though BRT is coming. People will need to find a way to live closer to where they work. • Some brokers suggested that the fastest way to develop the site is allow more "big box" retail developments along County Road 42. The north end of the site could develop into multi-family housing. • The strong consensus of brokers regarding value, if all 80 acres were purchased by one party, was $2.50 per square foot. If developed by multiple users the value would range from $5.00 to $7.00 per square foot along County Road 42 to $1.00 to $3.00 per square foot moving to the north end of the site. Survey respondents felt Apple Valley and the Hanson Site was appropriate for single purpose corporate office high tech uses that were not dependent on convenient truck access. Chapter V DEVELOPMENT STRATEGY RECOMMENDATIONS The 80-acre Hanson Site is over one-half of the available business park land in Apple Valley. There are currently 39 parcels of land 10 acres or larger offered for sale in Dakota County competitive cities. These parcels total 1,225 acres, and the Hanson Site is the 3 largest. Though there are many alternative properties for development in the region, the Hanson Site is well located and suitable for more intensive development that could provide an opportunity for higher income jobs for Apple Valley residents and provide more balance to the City's job market. However, at the present time, there is little to distinguish the Hanson Site from the other parcels. This must be changed if development is likely in the near future. The strategy to encourage development of the Hanson Site will need to take into consideration the new realities of business park development. In the past, Dakota County has enjoyed generally solid growth in its office and business park development. This has changed. It's no longer sufficient to list property with a broker, install a sign, and hope that someone will call. The brokerage community tends to overlook Apple Valley because it does not have an established business park with developable sites. As a result, Apple Valley cannot rely on the usual land marketing procedures of the real estate industry which everyone else is using. Apple Valley must develop a marketing plan that it attracts attention and stands out in the crowded development field. This plan should capitalize on Apple Valley's many strengths including: • Apple Valley's residential lifestyle and attractive neighborhoods to reinforce the "close to home" business location criteria, which is important to many executives. • High level of educational attainment compared to the nation. • High concentration of scientific, technical, and professional service occupations compared to the nation. • Apple Valley's proximity to MSP International Airport (14 miles) and the international destinations served by Delta with direct flights or connections through Amsterdam. • U.S. headquarters of Uponor, the largest supplier of heating and cooling pipe in North America. • Utilize Apple Valley's significant retail presence to expand the presence of health care and medical services, both to individuals and other health care industry participants. Apple Valley needs to take control of marketing messages and implement a consistent marketing and development approach. 5-1 Marketing and Development Strategy Much of the available business park land in Apple Valley is in the hands of aggregate producers, which is nearing the end of its life cycle in Apple Valley. The Hanson Site and other aggregate mining parcels total about 300 acres. These owners are not business park developers. Aggregate landowners in Maple Grove faced a similar situation. The approach used in Maple Grove involved the landowner forming a development relationship with a capable developer to market the site and take down land as development opportunities arose. This created a monopoly situation where a potential business had to negotiate with the developer. In some cases, cities seeking to increase development have purchased land and developed a city sponsored business park. This approach creates an opportunity where any developer can purchase and develop a building with city help. The drawback is that the city has to buy the land and install infrastructure and issue bonds to pay the costs before land can be developed. This places the city in a position of considerable risk. The approach suggested in this report provides a less risky and more open approach. Apple Valley could establish a public/private entity to take an active role in marketing development opportunities on the Hanson Site and other vacant business park land in the City. This entity could provide general marketing for Apple Valley and be a focal point for development inquiries. The public/private partnership would also provide marketing and development planning services under contract for landowners. The partnership could operate with a limited staff and use subcontractors to provide specialized services such as marketing, advertising, research, local, national and international business recruitment, and other services. Business park property owners would authorize the partnership to market their property and pay a commission and marketing reimbursement fee when a property was sold. Additionally, the partnership could contract for and supervise platting and site design services. The objective is for the partnership to be a one stop development agency for the City and landowners. It would also create an open playing field for developers since it would be a facilitator bringing a potential tenant to Apple Valley and any developer could develop on land represented by it. Any developer or business seeking a site could purchase land from an Apple Valley landowner. This expands the number of developers that could consider Apple Valley as a location. The partnership promotes Apple Valley and its business parks, but does not incur the carrying costs or risk. The city also has the flexibility to use the professional and development resources that are suitable for each development opportunity. Strategies that can be employed to encourage proper development by working with the current property owners could include: • Unified marketing effort directed at targeted business groups. • Assisting in planning the mixed-use development and dividing the site into development parcels within the site that could be sold to users and developers. • Place higher value, possibly multi-story buildings on 150 Street and one-story buildings on the north portion of the site. * Offer incentives for the targeted uses that could include tax increment financing, tax abatement, and special assessment districts. • Seek to encourage public/private partnerships with utility companies and other companies to reduce cost of occupancy in Apple Valley. These partnerships may include installing infrastructure using incentives and working with suppliers and business partners that may have an interest in co-locating with Uponor. Apple Valley should focus on attracting companies within those business groups where the City has a competitive edge. The City should cooperate and use the resources of Greater MSP in support of its activities. Greater MSP has identified the key industries and business sections that are most important now and in the future. Those business categories that are compatible with Apple Valley and Dakota County include: Bio Tech Health Care Providers Health Care Payers Health Care IT Software/IT Insurance Corporate Headquarters Professional Services R & D Centers Advanced Manufacturing Energy/Renewables Creative Services Apple Valley should also explore the potential for a Global Innovation Park focused on sustainability capitalizing on European leadership in this area. The Global Innovation Park would focus on incorporating advanced technology to reduce energy consumption, reduce carbon footprint, and other conservation related activities. This could include knowledge transfer of European techniques to the United States. Using a local company that has European connections, such as Uponor, could be a component of the Global Innovation Park. Uponor is widely recognized in green industry circles for its leadership in energy efficient heating and cooling systems, including geothermal and district heading technology. Minnesota was recognized as the fourth most sustainable state in the United States by Site Selection magazine in July 2011. A sustainable approach could strengthen marketing of the site and attract high quality tenants. Minnesota provides national leadership in energy related fields including Honeywell controls, Daikin McQuay industrial heating and cooling, and the glass cluster that stretches from Burnsville to Owatonna near 1-35. The opportunity to develop the site in a cost effective but sustainable manner should be pursued including transit links and possible LEED certification. Possible partnerships with Uponor and/or Xcel Energy should be explored. Professional and technical services related to health care are a growth niche well suited to the Twin Cities and Apple Valley. These are services that can be made available regionally, nationally, or globally. Examples of some services that demonstrate growth potential and are a good fit for the Hanson Site and area workforce include: • Medical services including, but not limited to: physician's offices, surgical centers, and diagnostic services. • Sophisticated medical reference laboratories and genetic testing. 5-3 Processing/production — drug compounding for generic drugs; pharmacies that handle monthly or quarterly refills by mail. • Medical informatics/payment processing. These recommendations are consistent with objectives to create higher income jobs in Apple Valley, increase the community business diversity, and create high value buildings and tax base. Appendix A Optional Broker/Developer Name: Firm: Phone: I am assisting McComb Group, Ltd who has been retained by the City of Apple Valley to study and explore reuse of 80-acre Hanson Concrete Site located at Johnny Cake Ridge Road and CR 42 (150 St.) 1.5 miles east of Hwy 77 (Cedar Ave). The City's goal is to create a development that generates head-of-household employment opportunities. We would greatly appreciate it if you would take a few moments to complete the attached survey and return via email to bmaus@northco.com at your earliest convenience. Thank you. Are you a commercial broker or developer? • 18 broker responses • One developer response Appendix A BROKER SURVEY HANSEN CONCRETE SITE Have you worked in what you consider the Apple Valley and surrounding market as noted on the attached map? • 18 said yes. • Yes. Our Land Services Team is very active within the City of Apple Valley and surrounding market with over 40 active listings both raw land and industrial/office properties. • No Have you ever worked with the City of Apple Valley and how would you characterize your experience? • Seven said no • We have worked with the City of Apple Valley on our listing located on the northeast corner of Johnny Cake Ridge Road and Upper 147 Street West. This site is approximately 12.76 acres in size and is across the street to the northeast of the Hanson site. We were recently successful on a sale of approximately a 2.36 acre site. In order to complete the transaction we worked with the City 147 deaUngvvbhthe extension of Upper ��/ West to Johnny Cake Ridge Road, for the Buyer to gain access into the site. The City of Apple VaIley was very cooperative and easy to work with due to their stance on the importance of job creation. • Yes • Yes. Have sold light industrial property in Apple Valley and had a very good experience with the City. • Yes. It was OK. • Yes. Apple Valley is "Top Shelf" great to work with • Yes. The City has been very helpful • Yes. The City is very good to work with. • Yes, good! • Yes, fine. • Yes, great! • Limited experience with the City of Apple ValIey but no issues. � Yes, good. What trends do you see in the market over the next 15 years that we should keep in mind as we consider reuse of the site? • lex buildings — Transition to multi-family • Over the next 15 years, we would fully expect that the existing vacancy that is plaguing the industrial and office sectors would be absorbed leading companies to start to look at expansion/new development once again. • We believe there is a potential for Headquarter facilities and build to sult for owners. Rental market will continue to be challenging. • We see an increase in office and light industrial use. • There will be increasing demand for a mix of housing and retail • Don't see much opportunity for tech development. Residential and retail work. Nice location for small business but there is plenty of retail. • Retail is well developed. Office is tough in AV. Could be a corporate site. � The industrial market is shallow We assume it will remain so especially in Apple Valley because it is away from the main transportation corridors. • The problem for Apple Valley to continue to focus on is they are not adjacent to the m jor transportation corridors. They need to do whatever they can to improve this. • Infrastructure and roads are a limiting use for the property. Businesses with no semi trucks. Good location for technology businesses. Data centers and fiex buildings. No housing or retail. Could be a good corporate campus site with • More retail but not for some time. That's down the road a ways. • It's a good location. Retail could go there but not for awhile. Reuse shouldn't be heavy industrial. Better suited for light industrial. • | have noidea • 1 see a combination of residential and mixed use development. • Apple Valley is a shallow office & industrial market and will see very limited development. • A shift away from conventional office space. In your experience, what has succeeded or not succeeded in the Apple Valley area? Why or why not? • It is pretty ev ifyou are at the County Road ar Avenue intersection on a Saturday afternoon what has seen its share of success in Apple Valley. The County Road 42 corridor that spans approximately 12 miles from east Apple Valley to Savage is one of the state's largest retail corridors. This is the "go-to" area for shopping amongst residents from all over the south metro. Apple Valley has taken advantage of this centralized location and made this area an attraction for residents to come and shop. • We don't see a real high percentage as high tech users but that is a market to explore. • Apple Valley is more difficult because the taxes are higher than the balance of Dakota County. • Apartments work well in Apple Valley. Manufacturing is a challenge. • Sort of a tough location because Apple Valley and the site are not close to the main transportation corridors. � The City needs to understand how to work with smaller businesses of many different kinds. The north end ofthe City is difficult. � If it's right on 42, retail is the best. • ln this case Iarger users will be more successful. • Ingress/egress remains an issue as AV does not have convenient access to m 'or interstate arteries. • Apple Valley has been successful at housing and retail. How does Apple Valley differ from other areas of the metro area/Dakota County? Why? • Site is very flat Apple Valley is "transportation challenged". Any heavy use would have a problem if there were an impact on the transportation system • To branch offfrom the Iast question ofwhat Apple Valley has DONE to experience success, the answer to this question is what Apple WILL DO to experience future success. What makes Apple Valley stand out and differ from Eagan and Burnsville is the amount of potential growth that will be available in the years to come. Eagan and Burnsville are primarily built out to capacity with their industrial/office parks and retail hubs. • Apple ValIey has more retail than other areas except Burnsville Center. Real competition is Rosemount and Lakeville. • Apple Valley hasn't planned this area and the gravel mining area well. • We just don't see much industrial because access is not convenient. • Apple Valley is similar to much of Dakota County. • The main difference is being away from the main transportation corridors. • Apple Valley seems more limiting on commercial than Eagan. • Apple Valley is a strong "Hub" after Burnsville and Eagan. The City is advanced and can process and handle sophisticated clients. • Apple Valley is further out. Density is less than Burnsville and Eagan. 1 think of it as a sub region compared to others. • The City lacks organized office and industrial business parks. A wide variety of development has occurred randomly throughout the City. • Very strong retail market because of residential density and income. What assets do this area of the metro offer that might define a niche for the site? • Best use is a campus type site • |f| am looking at the Site itself, its location is the biggest asset being located on the corner ofCounty Road 42 andiohnny Cake Ridge Road. The County Road 42 traffic is a m jor asset to this area and any company or companies that locate on the Hanson Concrete Site will understand the visual recognition they will receive. At this Iocat workers will also be in close proximi to the variety of restaurants and shopping Iess than one mile away. When looking at this area of the metro, I cannot help to think of the incredible educational school systems, city park and recreational facilities, MVTA Bus Transit, and of course, The Minnesota Zoo. • Retail proximity, traffic and exposure. Potential for heavy industrial outside storage. • Strong retail trade area. Over the next 10-15 years what types of users might find this site attractive? • Non "Smoke stack" type uses • In the Iast 1 — 2 years we have seen multiple requirements for raw land to accommodate Iarge distribution facilities. This area is used to seeing Iarge trucks in and out from Fischer Gravel, so we definitely see this as that kind of opportunity here. Industrial/Office/Showroom users would all be Iogical candidates to go on this site, in addition to the few large box retailers currently not in Apple Valley market. The main thing for the City to do in order to see this site develop is to keep an open mind and to have patience. Companies will get creative and this is certainly not an overnight project. � We think the most demand in the future for Apple Valley will be single and multi- family development. • The site will attract retail and/or industrial users. It is also ideal for residential development. Given the size of the site, it could be considered for a corporate campus but unless there is something unique about the requirement, current market conditions suggest this would be several years out. There is too much existing space to be absorbed within the inner tier markets. • Non-traditional industrial uses, retail & housing. This is an 80 acre site which creates some challenges as well as opportunities. What types of users might find a large infill parcel attractive? � Regarding challenges, 1 think the pipe line and the tank farm nearby are a problem. 1 understand there was a recent spill at the tank farm. � Best use is retail especially along CR 42. � Lifeworks or ProAct type user (sheltered workshop for disabled). The site is best for owner/users rather than speculative or multi-tenant users. � Big box retail. High density residential. Heavy industrial. Bringing the various factors together - size of parcel, location and a cooperative city — what opportunities would you suggest that the City explore? • The Site lends itself well to industrial, office and retail users and is located on a well traveled hard corner. In addition the site is quite large. We would suggest exploring a plan to incorporate all of the above uses in different capacities in order to absorb the land while providing varying employment and amenities that will attract land while providing varying employment and amenities that will attract employers. Other than this, obvious incentives such as Tax Incremental Financing or Tax Abatement would help lure different companies to the site that may be weighing a few different options. The ability to subdivide and sell smaller parcels would be an advantage, as well as, providing flexible zoning so as to not discourage users from considering the site. • Possible location for office/warehouse users. • I think the prospect of high finish development is remotely possible but I would suggest concentrating efforts on more likely prospect of developing the site for retail, residential or continued heavy industrial. • Leave as is, let the market dictate the use. The site is served by water, sewer and Xcel Energy. The soils are consistent with the surrounding gravel mining area. The site is flat. What do you think the land is worth per square foot? O The site will be difficult to sell to one buyer therefore, if it is broken up and sold as multiple parcels the average price would be about $4/sf • Depending on the end use, size of site, and any possible improvements completed prior to a sale, we believe the land is worth $2 - $10psf (per square foot) • As one parcel - $2.50 to $2.75/sf • $2.50 to $2.75/sf O Retail would expand there. As a non-retail use I don't know. Taxes are an issue. • It depends on the use but - $2.50 a square foot. • 80 acres - $2.50/sf • Top price if the front 20 acres were purchased $6 - $7/sf. For the whole parcel as one sale. Hard to say. • $2.50 to $3.00/sf • Front half is best for retail and worth $5 - $7/sf. The back half is worth $0 - $3/sf • $5 - $6 /sf for retail along 42 and if sold as one parcel I think it's worth about $2.50 /sf. • $2.50 /sf is a good asking price but the seller should be willing to take less because a parcel that size will be on the market for a long time. • I really don't know what the value should be. • It really depends on the use. I don't think there should be multi - family on the site and the way it is it will take a long time to develop. • $2.50 is an OK price. I can imagine a very nice industrial park. • $3 /sf • This depends on what is allowed. • $1.00 - $3.00 depending on use /user City of Apple ll Valley TO: FROM: MEETING DATE: SUBJECT: Planning Commission Members Margaret M. Dykes, Planner Also attached for the record is a letter from Menard, Inc. responding to the report. MEMO Community Development Department February 20, 2013 Amended Recommendation to Item 7B - Hanson Concrete Market Analysis Attached for your consideration is an amendment to the recommendation action for the Hanson Concrete Site Development Strategy report. The report recommends the City work with the current property owners to encourage development opportunities to create higher income jobs for Apple Valley residents and provide more balance to the City's job market. Staff would like to emphasize that no land use actions are being taken by the Planning Commission. The Hanson report has provided information about the employment picture in Apple Valley; it recommends the City take a more assertive approach to help property owners market the land for uses that generate higher-paying jobs than currently exist. To clarify the City's desire to work with the property owners on development of the site, staff would like to include the following action in its recommendation in addition to the one in the staff memo included in the Commission's packet: • Direct staff to work with the property owners to identify land use opportunities for redevelopment planning for the subject properties. February 20, 2013 Bruce Nordquist Community Development Director City of Apple Valley 7100 147 Street W Apple Valley, MN 55124 Dear Bruce- Re: Hanson Concrete Site Development Strategy City of Apple Valley, Minnesota VIA E -MAIL DELIVERY bnord uist ci.a .mn.us am in receipt of the Hanson Concrete Site Development Strategy (The "Study") prepared by the McComb Group, Ltd. relative to the former Hanson Concrete Plant Property (The "Property"), the bulk of which is now owned by Menard, Inc. It is my understanding the Study is being presented to the Planning Commission on Wednesday evening, February 20 but that no action will be taken at that time. Menard, Inc. is compelled to object to the conclusions of the Study, as it is apparent to us the Study lays the ground work for the ultimate change in land use and change in zoning district designation for the Property to Mixed Business Campus. We oppose this change for a number of reasons. 5101 MENARD DRIVE • From a land use perspective, the Study indicates the Property is similar to compatible with the Fischer property to the south, which is guided Mixed Business Campus by the City of Apple Valley 2030 Comprehensive Plan. Currently, Mixed Business Campus is limited to the south side of CR 42. One could just as easily conclude that the Property is similar to / compatible with the immediately surrounding industrial land uses or would comprise a natural extension of the retail uses located nearby to the west. Along those lines, we believe the Property would constitute a wonderful location to replace our existing store. • The market will be flooded with Mixed Business Campus guided land with the addition of the Property to the Fischer property to the south. • Mixed Business Campus is not currently a zoning district designation under the City of Apple Valley Zoning Ordinance. We cannot support a change in land use guidance for the Property without knowing what that leaves us with. • Being a vertically integrated company with numerous manufacturing, fabrication and warehousing needs, Menard, Inc. wants to retain the ability to construct a concrete block and/or truss plant on the property, among other potential manufacturing and warehousing possibilities. EAU CLAIRE, WI 54703-9625 PHONE (715) 876-5911 FAX (715) 876-2868 1 • We are disappointed in the lack of input afforded Menard, Inc. The McComb Group managed to talk to 18 commercial brokers regarding the Property; why not reach out to us as the property owner for the last six months and discuss our vision for the Property as well? Again, I understand that no action will be taken by the P1anning Commission following the presentation of the Study to them on the evening of the 20' . That being said, Mixed Business Campus is not the only land use that would be appropriate for the Property. The Study does very little in the way of examining other land uses and why they either would or would not be appropriate for the Property. From our perspective, the Study looks and feels like an effort to legitimize the City's desire to distance itself from retail or industrial uses on the Property. I will be available this evening in the event staff or members of the Planning Commission have any questions for me. I would appreciate your incorporation of Menard, Inc.'s objections to the Study into the record. As always, I may be reached at (715) 876-2810. Sincerely, Cc: Tom Lovelace, tlovelace@ci.apple-valley.mn.us Theron Berg Thomas O'Neil Real Estate Acquisitions Menard, Inc. 5101 MENARD DRIVE EAU CLAIRE, WI 54703-9625 PHONE (715) 876-5911 FAX (715) 876-2868