Adopt Resolution #21-147 Confirming Vision and Land Use Policy Direction and Economic Development Framework for West Armstrong Retail Area

Note - this is an introductory topic, the first time the City Council is reviewing in detail. The City Council should not feel obligated to take any action (aside from authorizing Staff to obtain quotes for design services for an areawide infrastructure and road redesign and reconstruction plan due to an expiring TIF District). Staff is comfortable in bringing this topic through a series of meetings. Ordinarily, Staff would have scheduled this for Work Session Discussion, but that calendar is full and an important expiration date for TIF District 14 is expiring at the end of November. 

The purpose of this case is to confirm previous policy direction, most recently established/confirmed in the City's 2040 Comprehensive Plan Update, that establishes a land use vision for the area generally north of Highway 10, west of Armstrong Boulevard, south of Bunker Lake Boulevard and east of the new Bunker Lake Industrial Park. This case is structured as a discussion with an opportunity to have a conversation about policy direction and ask clarifying questions. Nothing in this case approves any project or binds any particular policy direction. These conversations are important for Staff to help interpret policy direction for Applicants and Stakeholders. 

Land Use Planning Framework

The necessary policy direction can generally be summarized by the following policy questions.

1. Does the City desire to maintain the current redevelopment and revitalization vision long-term?
2. In implementing this vision, especially in the interim, does the City desire to focus zoning review on those items that are protected by lawful, non-conforming statutes and limit interim uses that are not protected and would further deviate or otherwise detract from the longer-term vision?

This district is current envisioned as a redevelopment area. The area west of Armstrong and east of Ferret Street is guided for redevelopment for retail uses and is the location of the new West Armstrong Retail Center. The area west of Ferret Street and east of the new Bunker Lake Industrial Park is guided for industrial redevelopment. The current uses can generally be characterized as significant outside storage (primary use) and again/under-utilized buildings.

Additionally, Staff has been fielding a number of zoning inquiries. Additionally, the City needs to make certain decisions about pavement management/road reconstruction and potentially scattered site acquisition to preserve the redevelopment vision. 

Finally, Staff has spent a significant amount of time enforcing zoning codes, public nuisance codes and building safety codes in this area through our code enforcement program. The number of public nuisance complaints the City receives continues to increase, especially as additional investment in new buildings are being made. 

Economic Development Framework

With a land use vision framework in place, the City's Economic Development Authority assists in implementing said vision. Their recommendations to achieve our vision are listed in the 'Recommendations' section below. There are 3 major components to the economic development framework (including confirming the work of the Planning Commission's land use vision work).

1. Future Land Use Planning/Zoning/Non-Conforming Uses
2. Economic Development Tools to Facilitate Cleanup/Blight Removal and Redevelopment
3. Infrastructure and road redesign and reconstruction plan

Notification is not required. 

This case specifically focuses on the land use planning and vision for the area. The City's Economic Development Authority (EDA) will be discussing potential scattered-site acquisition(s) and other economic development tools to implement the vision. The Public Works Committee will discuss potential road reconstruction, extension and utilities to facilitate redevelopment and encourage private reinvestment in the area. 

Economic Development staff is seeing an increased demand for industrial property for development.  43 acres of land in Bunker Lake Industrial Park is under contract for development by a private developer and only 25 acres of land (owned by PSD, LLC) remain for development.  Developing a plan to bring more industrial land online (approximately 25 acres west of Ferret Street, north of Hwy 10) to satisfy the demand should position Ramsey nicely over the next 5-7 years.  Economic Development Staff believes that Ferret St and its northerly extension would serve as a good buffer for the industrial use from the current COR zoning to the east.

Staff assumes, given the recent approval of the Comprehensive Plan, that the broad vision for the area will remain a redevelopment and revitalization vision with half redeveloping as retail and half redeveloping as residential. However, since most of the uses existed prior to the current vision and zoning, many of the uses are protected by lawful, non-conforming statutes. With those protections in place, those previous uses are generally easy to review. However, Staff has observed a noticeable increase in zoning requests that are less desirable and are not protected by lawful, non-conforming (most notably significant outdoor storage). 

This case is being handled as part of normal Staff duties. 

Potential Funding Sources to implement the vision include, but are not limited to the following.

1. EDA Fund
2. Anoka County HRA (Housing and Redevelopment) Fund
3. TIF District 14 (Tax Increment Financing)
4. Assessments (commercial/industrial properties for redevelopment purposes/not a standard pavement management program project)

The Planning Commission met on April 8, 2021 and recommended approval of the below policy statements, until the Planning Commission and City Council can meet in a joint work session to address the COR.
 

1. The City desires to maintain the current redevelopment and revitalization vision long-term.
2. In order to implement this vision, especially in the interim, the City desires to focus zoning review on those items that are protected by lawful, non-conforming statutes and limit interim uses that are not protected and would further deviate or otherwise detract from the longer-term vision.

The EDA met on April 8 and May 13 to discuss these policies as it relates to economic development plans and tools.
 

• Does the EDA support making more industrial zoned property with sewer and water infrastructure available? Yes, The EDA recommends making more industrial land available. The EDA Also reconfirms that the property to the west of Ferret St be zoned Industrial and the land East of Ferret Street be zoned COR. (It should be noted that this zoning is also the consensus of the Planning Commission)
• Would the EDA support using TIF/EDA/HRA dollars to prepare plans and specs for roads and utilities? Yes, The EDA recommends use of TIF/EDA/HRA dollars to prepare plans and specs for road and utilities. The EDA preference is to use TIF for this if possible.
  • TIF would be an eligible funding source is funds are expended prior to November 28, 2021
• Would the EDA support using TIF/EDA/HRA dollars to extend utilities, rebuild roads and extend Ferret Street north to Bunker Lake Boulevard? Yes, The EDA recommends the City to lead the infrastructure project and to use TIF/EDA/HRA dollars.
  • TIF would be an eligible funding source is funds are expended prior to November 28, 2021
• Is the EDA interested in purchasing properties with blight and zoning issues (tied to recent zoning requests)? No. The EDA is not interested in acquiring blighted properties that would be zoned retail. Rationale behind this decision was that the City already owns many of COR / Retail zoned properties. The EDA was supportive of utilizing City tools if needed for demolition and site preparation to help private projects get to the finish line.
• Is the EDA interested in purchasing strategically located properties to help facilitate this redevelopment project (i.e, locations for regional storm water)? Depends. The EDA would be supportive of acquiring properties zoned industrial if it was needed to facilitate redevelopment.

Motion to recommend that the City Council adopt the following policy statements. 
 

1. The City desires to maintain the current redevelopment and revitalization vision long-term.
2. In order to implement this vision, especially in the interim, the City desires to focus zoning review on those items that are protected by lawful, non-conforming statutes and limit interim uses that are not protected and would further deviate or otherwise detract from the longer-term vision.

Motion to adopt Resolution #21-147 approving economic development framework for West Armstrong Redevelopment Area and direct Staff to obtain quotes for design engineering services for an areawide infrastructure and road redesign and reconstruction plan due to an expiring TIF District).  (NOTE: this step is simply to obtain quotes to bring back for further discussion - it does not obligate any expenses)