PURPOSE
(1) consider directing staff to rezone Lot 1 Block 1, and Outlot B, of Alpha Plat**, to allow for a business park and quasi-public uses.

(2) consider updating the previously completed Bolton & Menk infrastructure analysis to account for the change to Lot 1 Block 1 of Alpha Plat, and the change to the Pearson parcel.

**Alpha Plat = generally is the Hageman Holdings land located northwest of the new Armstrong Interchange, about 175 acres in gross size, about 131 acres of gross business park land (proposed).  Lot 1 Block 1 is the former Legacy Christian Academy site (about 88 acres gross.  Attached is the PLAT for reference.

BACKGROUND
Please see attached case write up from November 07, 2016.

 

OBSERVATIONS
(1) consider directing staff to rezone Lot 1 Block 1, and Outlot B, of Alpha Plat, to allow for a business park and quasi-public uses. 

This action will secure the proper zoning to allow for Ramsey's future business park.  This is critical first step to securing a new business park.  Staff recommends this step be taken as soon as reasonably possible (as it can take up to four months--and staff is working with three prospects considering the new business park now).  The new proposed business park is roughly 131.51 acres gross, and about 110 acres w/o national wetland inventory. 

Staff believes the proposed business park meets the long term needs of Ramsey (it's large enough), is ideally located (setback far from rail line, includes a natural barrier from adjacent residential, access to Hwy 10/169 via an interchange), and is owned by a community partner that is willing to support the city's vision (Hageman Holdings).  Staff has connected with Hageman Holdings several times recently (including an in-person meeting on 11/22), and over the past few years.

It should be noted, staff and Hageman Holdings are proposing a new zoning district (perhaps E3 Employment district).  This district would be similar to our traditional business park districts (E1 and E2) with the following exceptions: little/ no outside storage allowed, little/ no unpaved areas allowed, shielding of pollution creating activities required (noise/ light), allow use of schools, and allow use of churches. 

Staff will recommend the Planning Commission be charged with drafting a zoning amendment (i.e. creation of a new zoning district).  The zoning amendment application will be made by the Ramsey EDA (will be about a $5,000-$8,000 cost, and will take 3-4 months).

Hageman Holdings would like to allow for quasi-public uses, such as a school or church, on their site.  Although Hageman Holdings is no longer committed to said uses, they don't want to close the door on the option--in the event it comes back.  At this point, PACT Charter School is still considering the Hageman Holdings site for a High School Campus.  NOTE: PACT Charter is looking for about 15-30 acres.
 

(2) consider updating the previously completed Bolton & Menk infrastructure analysis to account for the change to Legacy Christian Academy parcel, and the change to the Pearson parcel.

CapStone Homes has a purchase agreement in place with Pearson Properties for roughly 90 acres of land.  CapStone wishes to complete a residential development.  This is a major change in forecasted land use, in the previously completed Bolton & Menk Infrastructure study.  Additionally, the city wishes to convert the former Legacy Christian Academy site (Hageman Holdings) to a business park (i.e. rezone).  This is also a  major change in forecasted land use, in the previously completed Bolton & Menk Infrastructure study. 

As a result of the two major changes outlined above, staff will recommend the Bolton & Menk Study be updated to ensure proper arterial infrastructure is being planned.  It should be noted, if the city was not involved with the business park discussion, this would still be staff's recommendation (for CapStone to complete an updated study).  The cost to refresh the study is estimated between $5,000-$15,000 and would be shared with CapStone Homes (50:50).  The city has dollars available in TIF Account #1 to complete this study.

Digging further into this subject, the discussion of cost-share and assessments for the proposed arterial infrastructure needs to be resolved.  It should be noted, the former Legacy Christian Academy site (Lot 1 Block 1) was proposed to be assigned zero assessments in the original Bolton & Menk study.  Moving forward, staff anticipates that to change.  The City approved a development agreement with Hageman Holdings for a school site, with access only coming from Bunker Lake Boulevard (east side of Legacy site).  No access along the remainder of Bunker and Puma was needed by Legacy.  Now, that the former Legacy site is being rezoned for a business park, access along all of Bunker and Puma will be needed.  As a result, staff anticipates the assignment of new assessments on the west side of the former Legacy site (Hageman Holdings).

Staff has discussed this situation with Hageman Holdings.  Generally, Hageman Holdings is concerned.  They are currently paying significant assessments for the existing infrastructure that was extended from Armstrong, down Bunker, and up Puma (to Alpine).  As we know, they completed those improvements for the anticipated Legacy Christian Academy development.  As part of the Legacy development, Hageman Holdings completed a development agreement and plat (and development fees) with the City.  Hageman Holdings is willing to support the City's business park initiative, they are a willing seller (at a competitive price), and they are willing to have the property rezoned.  However, they are not willing to take on more assessments.  If that was a requirement of them supporting the new business park, they would continue sitting on their land until a developer came forward, willing to take on additional assessments.

With this in mind, the city should anticipate the need to pick up the cost of new assessments on Hageman Holdings property, as a result of the new business park initiative.  If the city is not comfortable with that general discussion, they should consider stepping back from this conversation now.  In order to have a constructive conversation on assessments, staff believes the Bolton & Menk Study needs to be updated.  This will help us better understand what financial obligation will come back to the city.  At this point, staff's very preliminary estimation is $700K-$1.6M.  The EDA has roughly $2.1M available (EDA Fund, Loan Fund, and County HRA).
 

(2) direct staff to work with CapStone Homes to update the previously completed Bolton & Menk arterial infrastructure analysis.

NOTE: staff will require a 50:50 cost share.  This work shouldn't take more that 30-60 days (i.e. done by March 2017). This will cost about $5,000-$15,000 total.  City will fund via TIF Account #1.  Once this work is completed, the City can have a robust policy discussion RE assessments/ cost-share for arterial infrastructure in the future business park.