4.3.
Economic Development Authority (EDA)
- Meeting Date:
- 11/14/2019
- By:
- Sean Sullivan, Community Development
Title:
Consider Alternative Land Use Options for Northwest Quadrant of The COR
Purpose/Background:
Purpose:
The purpose of this case is to seek broad policy direction on potential land uses at the northwest quadrant of The COR from a real estate management perspective. This 30 Acre Parcel is currently guided as a mix of housing and retail. Staff has had inquiries from at least four housing developers interested in medium density housing. Over the past several years, there has been very little interest from retail developers due to location and access. It should be noted that the City has approximately 100 acres of land guided and generally shovel ready for retail development. Any potential change to this node will still leave a significant amount of area guided for a variety of retail developments.
Background (Site History):
Recently the City of Ramsey has received feedback from potential developers and CBRE that this area is not a viable retail site without access from Armstrong Boulevard and/or Bunker Lake Boulevard. City Staff has received a few iterations of development layouts that do not include retail options on the site or greatly reduces the retail footprint.
The retail landscape and how development occurs is changing reducing the number of power centers and new large format retailers. Ramsey is located in between two major retails hubs, Elk River/Ostego and Coon Rapids, which makes it difficult to recruit a large format retail user on a site like this that doesn't have visibility from Highway 10. Ramsey also sees retail competition from Andover as well. With a changing retail market, many of these retail centers have vacant retail space to fill, adding to the competition for Ramsey.
Staff believes that this site does have some retail potential in the future, but it could take many years to come to fruition. Staff is looking for some feedback from the EDA on its willingness to be flexible with the land use for this parcel and whether the use could be entirely residential in nature.
Background (Access):
The City has a Joint Powers Agreement with Anoka County that outlines available additional access points from Armstrong Boulevard and Bunker Lake Boulevard. Anoka County has indicated that there are some possibilities for additional, restricted access along these roadways. The most viable additional access is a "Right In" only option could potentially be added between Zeolite St and Armstrong Boulevard on Bunker Lake Boulevard with a distance of at least 800 feet from the stoplight. The City and Anoka County will soon begin working on preliminary design in 2020 for the Bunker Lake Boulevard improvement project to 4 lanes. The City will have clarity on allowable access during that process.
The purpose of this case is to seek broad policy direction on potential land uses at the northwest quadrant of The COR from a real estate management perspective. This 30 Acre Parcel is currently guided as a mix of housing and retail. Staff has had inquiries from at least four housing developers interested in medium density housing. Over the past several years, there has been very little interest from retail developers due to location and access. It should be noted that the City has approximately 100 acres of land guided and generally shovel ready for retail development. Any potential change to this node will still leave a significant amount of area guided for a variety of retail developments.
Background (Site History):
Recently the City of Ramsey has received feedback from potential developers and CBRE that this area is not a viable retail site without access from Armstrong Boulevard and/or Bunker Lake Boulevard. City Staff has received a few iterations of development layouts that do not include retail options on the site or greatly reduces the retail footprint.
The retail landscape and how development occurs is changing reducing the number of power centers and new large format retailers. Ramsey is located in between two major retails hubs, Elk River/Ostego and Coon Rapids, which makes it difficult to recruit a large format retail user on a site like this that doesn't have visibility from Highway 10. Ramsey also sees retail competition from Andover as well. With a changing retail market, many of these retail centers have vacant retail space to fill, adding to the competition for Ramsey.
Staff believes that this site does have some retail potential in the future, but it could take many years to come to fruition. Staff is looking for some feedback from the EDA on its willingness to be flexible with the land use for this parcel and whether the use could be entirely residential in nature.
Background (Access):
The City has a Joint Powers Agreement with Anoka County that outlines available additional access points from Armstrong Boulevard and Bunker Lake Boulevard. Anoka County has indicated that there are some possibilities for additional, restricted access along these roadways. The most viable additional access is a "Right In" only option could potentially be added between Zeolite St and Armstrong Boulevard on Bunker Lake Boulevard with a distance of at least 800 feet from the stoplight. The City and Anoka County will soon begin working on preliminary design in 2020 for the Bunker Lake Boulevard improvement project to 4 lanes. The City will have clarity on allowable access during that process.
Notification:
Notification is not required for this case.
Observations/Alternatives:
Staff wants to be able to react and to guide developers on potential projects on this parcel. Staff understand that changing the use from Retail to Residential will likely have pricing implications for the site. Currently, the site is listed for $6.00/SF with a mix of retail and residential envisioned. Two developers have recently explored multiple development scenarios on this site.
Some common development considerations have emerged during these discussions.
Staff understands that the community has invested greatly in creating the vision for The COR. This case is simply a high level policy discussion and a report back on feedback from the development community. As the City has done before, the broader question on approach is important to discuss.
- Mix of residential and retail
- Residential only
Some common development considerations have emerged during these discussions.
- Fill and soil corrections
- Wetlands and stormwater management
- Retail market conditions/pro-forma
- Residential market conditions/pro-forma
- Costs of public infrastructure
Staff understands that the community has invested greatly in creating the vision for The COR. This case is simply a high level policy discussion and a report back on feedback from the development community. As the City has done before, the broader question on approach is important to discuss.
- Is the City willing to wait a longer period of time to achieve the desired vision?
Funding Source:
This case is being handled as part of normal Staff duties.
Recommendation:
Based on discussion.
Action:
No action is being requested.
Attachments
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Sean Sullivan (Originator) | Sean Sullivan | 11/06/2019 09:36 AM |
| Brian Hagen | Tim Gladhill | 11/07/2019 02:11 PM |
- Form Started By:
- Sean Sullivan
- Started On:
- 11/01/2019 12:34 PM
- Final Approval Date:
- 11/07/2019