Workshop Item: 2 - Bryan K. Schafer, Planning and Community Development Director
Title
LAND USE ISSUE (ISD 916 - 95th AVENUE/I35W BUSINESS PARK)
Background
At the September 13th City Council workshop the representatives from ISD 916 made a presentation to the City Council about their interest in locating in Blaine and specifically their development of a school at 95th Avenue and I35W. In summary, ISD 916 is an Intermediate Public School that provides special education to ten or more east/north metro school districts. Their proposal is to purchase 11 acres on the south side of 95th Avenue (United Property) across 95th Avenue from Eagle Brook Church and Arrowhead Electric.
The Council discussion centered on whether the City was supportive of a land use amendment or rezoning to allow the school at the site. Currently the PBD zoning does not allow a public K-8 school. The PBD has been amended twice in the past 5-6 years to accommodate Post Secondary Education (MN School of Business and Rasmussen College) and then to accommodate a Church (Eagle Brook Church).
Towards the end of the September 13th workshop discussion, the City Council was interested in finding out more information on a number of development related questions. Below is a short summary and response on those topics. Attached are a number of maps that help provide additional background.
Issues
Loss of key corporate office location:
· In the past 10 years (since 2003) the City has seen the construction of five (5) office/industrial buildings in the 100,000 square foot or larger category. They are Infinite Campus, Aveda office/warehouse, Parametric Technology, CSM multi-tenant and United Property multi-tenant. |
· Staff has identified 27 other Blaine locations within 1.5 miles of I35W that could accommodate a building of that size and type. Thirteen of those are on land that could be built in the next 1-3 years with the remaining 14 sites more in the 3 years or longer timeframe. These areas are shown on the map attachments. |
· There is also another 60+ acres of additional land in the Northeast Area guided for this type of development to provide for future (20+ years) office/industrial growth. |
Possible lower employment numbers with a public school:
· ISD 916 indicates a start-up of 88 jobs on site with quick migration to over 135 jobs within a few years. · With the five office industrial buildings mentioned above, two uses (Infinite Campus and PTC) have employment numbers that are higher than the school with each having well over 200 employees. · The other three projects have building employment numbers (45-90 each) that are less than the proposed school and more typical of multi-tenant industrial. |
As a public school the property would be tax exempt and therefore would not pay typical property taxes.
· The amount of taxes the City retains or collects from a 100,000 square foot office/industrial use can vary depending on a number of factors including school district, amount of office finish, age of building, etc. |
· Placing ISD 916 at a different location in Blaine would likely remove that other 10-11 acre parcel from development that would normally pay property taxes. Assuming the lowest density use of LDR (Single Family) we compared the 95th Avenue site to an 11 acre area in the Willowbrook Development. This 11 acre area contains 35 single family homes that were all built since 2007. |
· Below is a tax payment comparison of three different land use types: |
Site |
Bldg. Size |
2013 Value |
2012 Est. Taxes |
City's Share |
Ind/Office (High Finish) - PTC |
106,00 SF |
$8,804,000 |
$325,338 |
$38,748 (11.9%) |
Ind/Office/Warehouse |
98,000 SF |
$5,400,000 |
$207,610 |
$24,727 (11.9%) |
(Low Finish) - United 95th Ave |
|
|
|
|
Multi-Tenant |
|
|
|
|
Resd. Single Family (35 Lots) |
35 Homes |
$9,335,200 |
$88,684 |
$30,806 (34.7%) |
Average Value = $266,750 |
Note: The amount of Estimated 2012 Taxes Paid (3rd Column) does not include any special school levy money.
· ISD 916 recognizes that they contribute to the need for adequate public safety and maintenance of roads, trails and parks; all of which they will use for their students and staff. Based on that benefit they are proposing to make an annual development association payment of $15,000 to partially offset the increased demand for public services.
If the City Council is supportive of accommodating ISD 916, what land use process would the City use?
· Staff is recommending that the City Council direct the applicant/property owner to apply for a rezoning from PBD to DF (Development Flex) and incorporate all of the development standards into the required Conditional Use Permit.
Attachments
Letter From ISD 916
Letters of Support (Centennial, Spring Lake Park, Moundsview School Districts)
Site Plan (2)
Maps (Other 100,000 SF Projects and Other Potential Sites)
Tax Comparison Parcels