Development Business - Lori Johnson, City Planner
Title
Second Reading
Granting a Rezoning from I-2 (Heavy Industrial) to I-1 (Light Industrial) for 18.50 Acres at 10201 Xylite Street NE. (Case File No. 21-0007/LSJ)
Executive Summary
The City of Blaine is proposing to rezone the 18.50 acres immediately south of the Sanctuary 5th and 9th Additions from I-2 (Heavy Industrial) to I-1(Heavy Industrial).
Schedule of Actions
|
Planning Commission (Public Hearing) |
03/09/21 |
|
City Council (1st Reading) |
04/05/21 |
|
City Council (2nd Reading) |
04/19/21 |
Background
Staff report prepared by Lori Johnson, City Planner
The property in question is the 18.50 acres located directly south of the Sanctuary 5th and 9th Additions. This property is currently owned by Premier Banks and is zoned I-2 (Heavy Industrial) with a land use of HI (Heavy Industrial). Premier Banks obtained the property via foreclosure in 2019.
The Sanctuary residential neighborhood was developed in the early 2000s. The Sanctuary 9th Addition included these 18.50 acres as a remnant parcel in the plat in order to establish two additional residential lots on the 103rd Court cul-de-sac. The intent of the plat was to finish off that cul-de-sac, but leave the property in question as one large industrial lot. The developer and owner at the time believed he could develop this property with heavy industrial uses, so even though the properties were under the same original ownership, the subject property was not planned to be part of the Sanctuary residential development and therefore was not rezoned.
The property has approximately 12 acres of upland. A majority of the wetland is located along the north and northeast portion of the property.
Park Construction submitted a development proposal for this property in 2017. Park Construction intended to develop the property for offices, interior equipment storage and an outdoor contractor yard. The proposal essentially maximized the site by filling 2.5 acres of wetland on the north and west portions of the site. The project required a Conditional Use Permit (CUP) approval by the City Council. The CUP was denied by the City Council and the project did not move forward.
During the process, concerns were brought forward by the adjacent residential property owners, which generally focused on negative residential property value impacts, noise/odor and visual impacts due to extensive outdoor storage. Screening efforts were made by the developer in an attempt to mitigate these concerns. Discussion also occurred about the compatibility of I-2 zoning adjacent to residential property.
Historic Zoning
The property has been zoned I-2 since at least 1979. The Sanctuary neighborhood, directly north of the subject property, was historically zoned either industrial or agricultural up until the late 1990s/early 2000s when it was rezoned to R-1B to allow for residential development. Properties to the west, east and south have historically been zoned industrial.
The subject property is guided HI in the 2040 Comprehensive Plan which is consistent with the current zoning. Minnesota State Statute requires zoning and land use to be consistent regardless of the City’s future vision for a property. Maps are included that show the current zoning and 2040 Comprehensive Plan land use designations for the area.
The purpose of the I-2 district is to provide for the development of heavy industrial uses ranging from small to large-scale industry, with a need for outdoor uses and storage and related services. This district shall encourage the development of industrial uses accessible to major highways and utilizing city services of sanitary sewer, water, street, and storm drainage. Such heavy industrial areas should be located next to light industrial and airport districts and shall be free of hazardous or objectionable elements such as noise, odor, dust, smoke, glare, or other pollutants. The I-2 zoning district permits a variety of traditional industrial uses such as manufacturing, office, warehousing which is permitted in all industrial districts. I-2 zoning however allows more intensive uses and outdoor storage, which requires a conditional use permit.
There are two light industrial zoning districts identified as I-1 and I-1A. The purpose of these districts is to provide for the development of industrial uses ranging from small to large scale industry and related services. These districts shall encourage the development of industrial uses accessible to major highways and utilizing city services of sanitary sewer, water, street, and storm drainage. Such light industrial areas can be located next to heavy industrial, commercial, residential, and airport districts and shall be free of hazardous or objectionable elements such as noise, odor, dust, smoke, glare, or other pollutants. The I-1A zoning district allows minimal outdoor storage limited to a maximum of 50% of the total building footprint and requires appropriate screening. The I-1 zoning district allows no outdoor storage.
There are two other areas in Blaine where I-2 zoning exists adjacent to residential properties. Those areas are located off West Lakes Pkwy/Cloud Drive and 125th Avenue, and Xylite Street and 85th Avenue. In these instances, the I-2 properties had existing uses prior to the homes being built so the homeowners had a general idea of what existed prior to purchasing their homes.
In 2020, Premier Banks had been working with Walter’s Refuse and Recycling who was looking at purchasing the site. They would have utilized the southern portion of the site for a new building and outside storage. The buyer had discussions with staff about a potential buffer between their use and the residential neighborhood. This would have required some type of Economic Development Authority (EDA) assistance in order to make the project financially feasible. Walter’s decided not to proceed, so nothing was brought forward for the City Council/EDA to consider.
Premier Banks has been marketing the property since the previous potential buyer declined their interest. Staff has spoken with several interested parties, which include uses that would meet the I-1 or I-1A zoning and uses that would require the I-2 zoning.
On January 20, 2021, the City Council discussed the future of the property at a workshop. After a discussion on the merits of the current I-2 (Heavy Industrial) zoning of the property and the merits of a zoning change to I-1 (Light Industrial), the City Council indicated they would be supportive of processing an application to consider a zoning change to I-1 (Light Industrial).
As this is a city-initiated zoning application and corresponding land use amendment, the City Council made a formal motion on February 17, 2021 to refer this rezoning and land use amendment to the Planning Commission for their review and recommendation.
The proposed zoning of the property is I-1 (Light Industrial) and the proposed land use of the property is LI (Light Industrial). Based on the City Council’s discussion on this issue at their workshop, the following rationale is provided in support of the rezoning and land use amendment:
1. Given this site’s proximity to the residential homes to the north, the heavy industrial uses of the I-2 (Heavy Industrial) zoning district and corresponding land use of HI (Heavy Industrial), are not compatible with, or conducive to, the welfare of the residential neighborhood.
2. The I-1 (Light Industrial) zoning and the LI (Light Industrial) land use provides the opportunity for the property to be developed with no outside storage uses, and uses that are more compatible with the residential neighborhood to the north.
3. The light industrial development market is strong right now in Minnesota and there are likely to be interested developers that do not need the heavy industrial uses of the current zoning district and land use classification.
Strategic Plan Relationship
Not applicable.
Board/Commission Review
The Planning Commission voted unanimously to approve the rezoning. One resident from the Sanctuary neighborhood spoke at the public hearing in support of changing the zoning to I-1 Light Industrial.
Financial Impact
Not applicable
Public Outreach/Input
A public hearing notice for the Planning Commission meeting was sent to property owners within 350 feet of the property boundaries.
Staff Recommendation
By motion, approve the ordinance.
Attachment List
Zoning and Location Map
Zoning Map
Land Use Map
Draft Planning Commission Meeting Minutes 3/9/21
Body
THE CITY OF BLAINE DOES ORDAIN: (Added portions are underscored and deleted portions are shown with overstrike.)
Section 1. The Official Zoning Map of the Zoning Code of the Municipal Code of the City of Blaine is hereby amended to change the zoning classification of the following described property:
Outlot A, THE SANCTUARY 9TH ADDITION
Section 2. The above described property is hereby rezoned from:
[I-2 (Heavy Industrial]
to
I-1 (Light Industrial)
Section 3. The City Manager is hereby directed to make the appropriate changes in the Official Zoning Map of the City of Blaine to reflect and show the changes in zoning classification as set forth above.
INTRODUCED and read in full this 5th day of April, 2021.
PASSED by the City Council of the City of Blaine this 19th day of April, 2021.