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Home My WebLink About10-04-2016 Minutes MINUTES OF PLANNING AND ZONING COMMISSION OCTOBER 4 2016 7:00 PM The meeting was called to order at 7:00 pm by Chair Szurek. Commission Members present- Buesgens, Schill, Hoium, and Szurek Member Absent: Fiorendino Also present were Elizabeth Holmbeck (Planner), Keith Dahl (Economic Development Manager), and Shelley Hanson (Secretary) along with Council Liaison, John Murzyn. Motion by Buesgens, seconded by Hoium, to approve the minutes from the meeting of Sept 6th, 2016. All ayes. MOTION PASSED. OTHER BUSINESS CASE NUMBER:2016-1001 APPLICANT:Hy-Vee, Inc. DEVELOPMENT:Central Valu Center LOCATION:4300 Central Avenue NE, Columbia Heights, MN 55421 REQUEST:Approval of the Conformity of the Tax Increment Financing Plan to the Comprehensive Plan and Adoption of Resolution 2016-PZ05 Dahl explained to members that Hy-Vee has requested public financial assistance from the Columbia Heights Economic Development Authority (EDA) for the redevelopment of the property located at 4300 Central Avenue NE (Subject Property). In Columbia Heights, the EDA is the authority authorized to exercise Tax Increment Financing (TIF) powers, however the EDA may not exercise any TIF powers without prior approval from the City Council. The City Council has scheduled a public hearing to approve the modification and establishment of the proposed TIF district for October 24, 2016 at approximately 7:00 PM. Before or at the time of approval of a TIF district, the City Council shall make certain findings pursuant to Minnesota State Statue 469.175. One specific finding that is required before City Council approval is that the Planning and Zoning Commission review and determine if the TIF plan conforms to the general plan for development or redevelopment of the City as a whole. Thus, the Planning and Zoning Commission will need to approve a resolution that ensures the proposed TIF plan conforms to the Comprehensive Plan for the City. Dahl summarized the Plan with the members. Dahl explained that originally Hy-Vee wanted to redevelop the entire building but couldn’t come to terms with the existing tenants in the north end of the building, so they had to modify their plan to do a renovation of the current building which is more expensive. Once they started the renovation process they found contamination behind the walls and under the floors of the retail space. They must now dig down into the soils under the building and remove the contamination. This is why they are now asking for financial assistance as this will increase their cost to redevelop this site. If they could have razed the entire building, they wouldn’t have asked for any financial assistance. Dahl told members that staff is working on grant applications to assist them with some of the clean -up costs, and Hy-Vee is also applying for additional financial assistance options to help with the additional costs. P & Z Minutes Page 2 Oct. 4, 2016 ZONING ORDINANCE The Subject Property is located in the General Business Commercial Zoning District (GB) along Central Avenue. The 10.14 Acre site is adjacent, on the north and south side, to Limited Business Zoning Districts (LB), One and Two-Family Residential Zoning Districts (R-2A), and Built as Duplexes Residential Zoning Districts (R-2B). However, the property to the west is zoned as Public and Open Spaces (PO) and the properties to the east, across Central Avenue, are designated as GB. COMPREHENSIVE PLAN Currently, the existing use along Central Avenue between 43rd and 45th Avenue NE is home to auto-oriented, big box stores with large front loaded parking lots. Given the frequent transit services along Central Avenue, the Comprehensive Plan guides the Subject Property for transit-oriented, mixed-use development that accommodates a front loaded building along Central Avenue with off-street parking located behind. The development should also provide an enhanced pedestrian environment that incorporates landscaping and façade features in an effort to increase pedestrian activity. The Comprehensive Plan also discusses the opportunity for the City to pursue funding for redevelopment, such as grants and evaluation of financial tools, such as Tax Increment Financing or Tax Abatement to attract redevelopment specific to the desired needs of the community. The modification and establishment of the proposed TIF plan will result in the renovation of an underutilized commercial retail center and the attraction of a new grocery store, Hy-Vee. Hy-Vee’s Site Plans were previously approved by the Planning and Zoning Commission on September 6, 2016. The approved Site Plans propose that development will incorporate vegetation (canopy trees, understory plants, and evergreens) throughout the property in a concentrated effort to create an aesthetically pleasing environment for pedestrian activity to increase. The typical distance for a pedestrian to choose to walk rather than drive is in the range of a quarter mile. Within the quarter mile radius around the Subject Property, there is approximately 1000 residential housing units zoned as R-2A and R-2B. If you take the average household size in Columbia Heights, which is roughly 3.15, and multiply it by the number of residential housing units within the quarter mile radius, you find 3,150 residents have the potential to increase the pedestrian activity in the surrounding area. In conclusion, granted that the approved Site Plans for Hy-Vee are not consistent with the transit-oriented, mixed-use development the Comprehensive Plan guides for, the proposed TIF plan will generate roughly 450 jobs within the community. That is 77% of the expected jobs Columbia Heights is supposed to accommodate for between 2000 and 2030. For these reasons and more, the proposed Central Valu Center TIF District is consistent with the Comprehensive Plan for Columbia Heights. DESIGN GUIDELINES The request and approval for the Planning and Zoning Commission to review and determine the proposed TIF district is in compliance with the City’s Comprehensive Plan isn’t subject to Design Guidelines. SITE PLAN The request and approval for the Planning and Zoning Commission to review and determine the proposed TIF district is in compliance with the City’s Comprehensive Plan isn’t subject to a Site Plan. FINDINGS OF FACT The request and approval for the Planning and Zoning Commission to review and determine the proposed TIF district is in compliance with the City’s Comprehensive Plan isn’t subject to Findings of Fact. P & Z Minutes Page 3 October 4, 2016 Questions/Comments from members: Buesgens asked if there was contamination under the parking lot also. Dahl said he is not sure about this, but wouldn’t be surprised . Hy-Vee will take care of the testing necessary to determine this. She then asked about the asbestos found behind the existing wall coverings. Buesgens wondered if they would have to renovate the current tenant spaces also. Dahl explained that they are not opening up or exposing any of the asbestos in those spaces, so no remediation would be needed in those tenant spaces. Hoium stated that anyone that would develop this property would have to deal with the contamination issues, so it must be taken care of at some point. Schill asked who currently owns the building. Holmbeck stated that Brixmoor is still the owner of record but Hy-Vee is under contract to purchase the property. They are under a time frame to close on the sale and need to get all the financial details in place in order to close. Szurek asked what time frames were left on the leases of the current tenants. Dahl said Frattalone’s Hardware is under 10 years, Meineke has approximately 2 years left, and the Dollar Tree has approximately 6 or 7 years left. Questions from the Public: No one had any further questions. Motion by Hoium, seconded by Buesgens, to adopt Resolution 2016-PZ05, a resolution by the Columbia Heights Planning and Zoning Commission Finding that a Modification to the Downtown Central Business District (CBD) Revitalization Plan for the CBD Redevelopment Project and the Plans for Establishment of the Central Valu Center TIF District conform to the General Plans for the Development and the Redevelopment of the City of Columbia Heights. All Ayes. MOTION PASSED. PLANNING COMMISSION CITY OF COLUMBIA HEIGHTS, MINNESOTA RESOLUTION NO. 2016-PZ05 RESOLUTION OF THE COLUMBIA HEIGHTS PLANNING COMMISSION FINDING THAT A MODIFICATION TO THE REDEVELOPMENT PLAN FOR THE DOWNTOWN CENTRAL BUSINESS REDEVELOPMENT PROJECT AND A TAX INCREMENT FINANCING PLAN FOR THE CENTRAL VALU CENTER TAX INCREMENT FINANCING DISTRICT CONFORM TO THE GENERAL PLANS FOR THE DEVELOPMENT AND REDEVELOPMENT OF THE CITY. P & Z Minutes Page 4 October 4, 2016 WHEREAS, the Columbia Heights Economic Development Authority (the "EDA") and the City of Columbia Heights (the "City") have proposed to adopt a Modification to the Redevelopment Plan for the Downtown Central Business Redevelopment Project and a Tax Increment Financing Plan for the Central Value Center Tax Increment Financing District therein (together, the "Plans") and have submitted the Plans to the City Planning Commission (the "Commission") pursuant to Minnesota Statutes, Section 469.175, Subd. 3, and WHEREAS, the Commission has reviewed the Plans to determine their conformity with the general plans for the development and redevelopment of the City as described in the comprehensive plan for the City. NOW, THEREFORE, BE IT RESOLVED by the Commission that the Plans conform to the general plans for the development and redevelopment of the City as a whole. Dated: October 4, 2016 _______________________________________ Chair ATTEST: ___________________________________ Secretary Holmbeck told members that staff has received an application for the November meeting which is currently st being reviewed. She reminded members that the meeting would be held on November 1. The meeting was adjourned at 7:20 pm. Respectfully submitted, Shelley Hanson Secretary