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1997-03-25 Planning Comm MinutesCITY OF MENDOTA HEIGHTS DAKOTA COUNTY, MINNESOTA PLANNING COMMISSION MINUTES MARCH 25, 1997 The regular meeting of the Mendota Heights Planning Commission was held on Tuesday, March 25, 1997, in the City Hall Council Chambers, 1101 Victoria Curve. The meeting was called to order at 7:30 p.m. The following members were present: Dwyer, Koll, Friel, Betlej and Duggan. Commissioners Lorberbaum and Tilsen were excused. Also present were Public Works Director Jim Danielson, Planning Consultant Meg McMonigal, Administrative Assistant Patrick Hollister and Senior Secretary Kim Blaeser. ELECTION OF OFFICERS Commissioner Friel moved to re-elect Mike Dwyer as Chair and Ultan Duggan as Vice Chair. Commissioner Koll seconded the motion. AYES: 5 NAYS: 0 Commissioner Duggan moved approval of the February 25 Minutes with corrections. Commissioner Betlej seconded the motion. AYES: 4 NAYS: 0 ABSTAIN: 1, DWYER Mr. Jonathan Yanta, Koll Real Estate Services Company, was present to discuss a request to build two office buildings and an office/flex building on the Tousignant property in the northeast corner of 1-35E and 1-494. Mr. Yanta introduced Mr. Daniel Gleason, of Koll Real Estate Services Company and Mr. James Resop, of Resop Real Estate. Mr. Yanta explained that the proposed planned unit development is located i off of 135E between Mendota Heights Road and 1-494. He stated that the property is owned by the Tousignant Family Limited Partnership and is currently under contract to purchase by Moen Leuer Construction Company. Mr. Yanta stated that Mr. Mark Leuer was unable to attend tonight's meeting. Mr. Yanta explained that the property has ponding in the approximate center of the property and to enhance this feature, they are proposing a high-end office/corporate use on the east end of the property and a high profile office/flex uses on the west end of the property with the ponds as a buffer between them. Mr. Yanta stated that pond in the center of the property creates an aesthetically pleasing atmosphere. Mr. Yanta explained that they would like to construct two three story office buildings and a one story "office -service area" building. The office buildings would each be about 100,000 square feet and the "office service" building would be about 120, 000 square feet. In response to a question from Chair Dwyer, Mr. Yanta explained that the difference between the office building and the "office -service" building is that the ceiling for the "service area" space is 14 feet. He stated that this building type would accommodate medical/technical companies. He stated this building type would be attractive to companies who wish to move to a one level building. Mr. Yanta stated that all three buildings would have office quality exterior materials, such as brick with ribbon class. Chair Dwyer inquired if the loading docks would be hidden from casual view. Mr. Yanta stated that the service area will be well hidden from the school and highway system. He stated that there will not be a lot of service vehicle traffic. In response to a question from the Commission, Mr. Yanta explained that there proposals will need to be sent soliciting tenant space. In response to a question from Chair Dwyer, Planner McMonigal explained that the Tousignant property is zoned R-1 and that it is guided in the City's Comprehensive Plan as Limited Business Planned Unit Development (LB - PUD), which is analogous to the B-1 zoning designation. Commissioner Friel inquired if the applicant's request is consistent with the Planned Unit Development Ordinance. Planner McMonigal stated that "office/flex" is not listed as permitted use. She explained that offices of general nature where 2 the operations do not include retail sales or warehousing from the site is a permitted use. She stated that there is room for interpretation by the City. Planner McMongial submitted photographs of one story office/flex space buildings within the Twin Cities area. She stated that these buildings offer a variety of uses. She noted that the loading docks are well hidden. She informed the Commission that her office utilizes this type of space and that it works well. She further informed the Commission that while this offers a good mixture of uses, parking appears to be a problem. Regarding marketing, Mr. Gleason informed the Commission that today's market needs this product. He stated that the Twin Cities has experienced a 10-15 year low with vacancy rates and that one level office buildings are less expensive. He pointed out that these buildings do not offer common areas such as conference rooms which adds more square footage and more expense to tenants. He explained that United Properties offers a similar product within Mendota Heights. He explained that they intend to provide parking as per the City's ordinance requirements. Mr. Gleason stated that the proposed buildings with 14 foot ceilings will not accommodate warehouse users. Commissioner Koll inquired about financing. Mr. Yanta stated that they intend on getting a lead tenant and then pursue the financing. Mr. Yanta explained that the office/flex space will be constructed with up front financing and that tenants will be pursued later. Commissioner Koll inquired about other Moen Leuer developments in the'Twin Cities area. Mr. Yanta explained that Moen-Leuer has $11 million of product in the Twin Cities area. Mr. Gleason explained that the project will be completed in two phases with the off ice/flex phase beginning first. He explained that the total cost of the project will be between $25430 million. Commissioner Duggan stated that this is a lot of money. He noted his concern should Phase I not be rented. He further stated that he is concerned with what recourse the City has should the property become vacant and unsightly. Mr. Yanta responded that the market controls what phase will occur first. He stated that should a recession occur, may be development of the second phase will be postponed. Commissioner Duggan inquired if the applicant would be willing to develop the office building first and then building the office/flex building. Mr. Yanta stated that they would prefer to construct all three buildings right away but that the market is really asking for the office/flex building. He stated they are very confident that this space will be rented. 3 Mr. Gleason stated that they intend to approach an institution and place them on long term financing. He stated that they definitely need tenants on hand. Gleason stated that Moer-Lever has done this type of development before and that they work with banking institutions who provide funding for these developments. Chair Dwyer inquired about the applicant's suggestion about City assistance. Mr. Yanta responded that they want to adhere to what the City would like to see on this property. He stated that the City envisions corporate headquarters on this site. He pointed out that the viability of a corporate headquarters in this area is low. He pointed out that one corporate headquarter facility is constructed ever 5 to 6 years in this area. He stated that he believes that their proposed development will bring in a high tax base for the City. Mr. Gleason stated that the Mendota Heights does not have a lot of existing tenants who need to transfer a different building. He stated that tenants need to transfer from other cities. Mr. Gleason stated that they realize that the City envisions this area as a gateway to Mendota Heights. He pointed out that most corporations prefer their headquarters in an office park setting and the residential nature of the surrounding area and the presence of the two schools across the street make this site less attractive for a corporate headquarters use. Commissioner Betlej inquired about other Moen-Leuer developments. Mr. Yanta responded that Moen-Leuer has developed 323,000 square foot corporate facility across from Dundee in Plymouth. Betlej suggested that the Commission consider walking through one of their facilities. Commissioner Betlej stated that the City would like to have additional information regarding financing. Regarding City assistance, Commissioner Betlej stated that he does not believe that this area is targeted for Tax Increment Financing. Commissioner Betlej inquired about tenants. Mr. Gleason stated that they have been pursuing tenants from the east Bloomington area. He stated these tenants are looking for one level buildings. Betlej inquired if these tenants are looking for warehouse space. Mr. Gleason stated that they are trying to create a flexible environment for future tenants. He stated that they are trying to create office space for tenants who also need storage space. Commissioner Betlej inquired about signage. Mr. Gleason stated that they envision a monument sign and that each tenant will have its own signage S above their entry doors. He stated that a corporate headquarters will want its own signage and so a major tenant may have signage on the building which should be highly visible. Commissioner Betlej inquired about parking. Mr. Yanta responded 5 per 1,000 square feet of office space and 3 1/4 to 4 spaces per 1,000 square feet of office/flex space. Betlej suggested that the developer consider a higher parking ratio. Commissioner Duggan concurred with Commissioner Betlej. He inquired about how many tiers the parking ramp will be. Mr. Gleason that the ramp will hold 400 cars. Duggan noted his concern for how visible the ramp will be. Mr. Gleason stated that landscaping will be completed, such as a berm, to help hide the ramp. A discussion ensued regarding decreasing the size of the building which would then conform to the parking requirements within the City's ordinance. Commissioner Betlej stated that a more efficient plan is needed showing parking and landscaping around the parking ramp. Commissioner Betlej inquired if the ponding area is considered a wetlands area. Public Works Director Danielson responded that staff would review the City's Wetlands Map and if the property is determined to include a wetlands, the developer would need a wetlands permit if they wish to build within 100 feet of the water. Chair Dwyer expressed his concerns with the proposed development and how it might increase the volume of traffic on Mendota Heights Road. Dwyer noted his concerns for safety of students from St. Thomas Academy and Visitation. Dwyer inquired if the developer has completed a traffic study. Mr. Gleason responded no. Dwyer stated that the current traffic at Dodd Road and Mendota Heights Road is significant and that additional vehicle and truck traffic is a significant issue of concern. Commissioner Betlej pointed out that there is a lack of public transportation available to the community. He stated that because there is a lack of public transportation, developers in Mendota Heights are forced to create more parking for tenant/truck use. He suggested that the City work with the Metropolitan Transit Authority to help provide more public transportation to the City. Commissioner Friel asked for clarification as to what office/flex space is. He inquired if this includes UPS/Mail Boxes etc and printing companies. He stated that this type of space offer different kinds of uses, maybe retail in nature. He stated that this type of use will generate traffic apart from regular employee traffic. He stated that traffic studies need to be demonstrated to prove that additional traffic is not a concern in this area. Mr. Gleason stated that additional work needs to be completed regarding A traffic studies. Mr. Yanta stated that they will need to focus on the type of tenant that will blend in with park. Planner McMonigal informed the Commission that the B-1 zoning does not allow retail sales but does allow office. Commissioner Friel stated that there is room for interpretation. A discussion ensued regarding warehouse/storage space. Planner McMonigal stated that a primary business who requires warehouse space belongs in a different zoning district. In response to a question regarding land ownership, Mr. James Resop, of Resop Real Estate, informed the Commission that the Tousignant family has owned this property for many years and that currently, the property is owned by 20 different owners. Commissioner Duggan inquired about Moen-Leuer's commitment to the project. Mr. Yanta responded that they will need to review the property's footprint and that parking is a real issue. Mr. Gleason stated that Moen- Leuer Development is committed to be successful and delivering a product that is conducive to the City and also to market demands. Commissioner Duggan noted his concerns for safety within the parking ramp. He inquired about security. Mr. Yanta stated that they would work with the City on this issue. Commissioner Duggan suggested that the developer consider reducing the size of the project. He stated that the proposed three story building is large, especially because it sits on top of a hill. Mr. Yanta stated that they want to work with the City and adhere to their guidelines. Mr. Yanta concurred and stated that these guidelines need to be reasonable. In response to a question regarding exterior building materials, Mr. Gleason stated that the materials will consist of brick with ribbon class. He stated that color has not been discussed but that it will blend in with the surrounding area. Commissioner Duggan inquired about the overall height of the structure. Mr. Gleason responded 35 to 40 feet. Chair Dwyer inquired about the site lines from St. Thomas Academy. Mr. Gleason responded that the proposed development will be a barrier to St. Thomas Academy. Commissioner Duggan inquired about the color of the parking ramp. Mr. Gleason stated standard white or vanilla. Commissioner Duggan suggested that the developer submit information on proposed lighting of the ramp area and proposed security ideas for the ramp. Mr. Yanta and Mr. Gleason stated that they are trying to find a combination for what works well for the City as well as what works well for the owners of the property. Mr. Yanta stated that they realize that parking is an issue and that the PUD ordinance guidelines need to be adhered to. He further stated that landscaping is an issue along with building materials. He stated that they will do their best to keep the City's interest at heart. He stated that more specific plans are needed and that they intend to work more on the ponding area and drainage. He stated that a traffic study needs to be completed because they anticipate an additional 1,200 to 1,300 trips a day on Mendota Heights Road. Chair Dwyer suggested that the developer drive through this area during rush hours both in the morning and afternoon. Commissioner Duggan suggested that the developers read through the PUD ordinance several times. Mr. John Greving, Headmaster of St. Thomas Academy, expressed concerns for additional traffic on the site and parking lot security. The Commission inquired about the future of the triangle shaped parcel to the est of the Tousignant property and the future of the parcel to the east owned by Visitation. Mr. Resop stated that a developer had the triangle piece on a purchase agreement for a hotel, but that he had not heard from the developer for quite a while. Mr. Gleason stated that he had contacted Visitation and that they informed him they are not interested in selling or developing their land any time soon. Mr. Greving inquired about construction timelines. Mr. Yanta stated that the office/flex is proposed to begin construction in 4 to 6 months with a completion in January of 1998. He stated the second phase could begin in 18 months. DISCUSS ATTENDING LAND USE PLANNING WORKSHOP The Commission acknowledged receipt of information regarding a workshop on Land Use Planning. MISCELLANEOUS Regarding the Tousignant property, Commissioner Friel suggested that this land may be better suited a park land. VA There being no further business, the Planning Commission adjourned its meeting at 9:35 p.m. Respectfully, Kimberlee K. Blaeser Senior Secretary F.*]