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2 Mendota Hts Ind Dist Memo 10-22-15Stantec MEMORANDUM Date: October 23, 2015 To: Mendota Heights Planning Commission and City Council From: Phil Carlson, AICP, and Katrina Nygaard, Consulting Planners RE: Mendota Heights Industrial District Redevelopment Study MENDOTA HEIGHTS INDUSTRIAL DISTRICT Mendota Heights has applied for a grant from the Dakota County Community Development Agency (CDA) for an Industrial District Redevelopment Area Plan. Mendota Heights' city staff has developed a planning process with Stantec and real estate subconsultants from Cushman - Wakefield to research and analyze key information and engage key stakeholders to develop a vision for the District's future. In order to develop a comprehensive, grounded redevelopment plan, the team began by assembling and analyzing various types of information. This memorandum summarizes that research. These findings include the characteristics of the district and specific information about properties within the District, such as age of buildings, vacancy rates, and land values. Other important systems such as the local market, the MSP Airport and regional transit are included to provide additional context. We conclude with a discussion of the future of industrial districts across America, suggesting the opportunities and challenges the District may face in the future. This analysis will guide idea generation and planning for the entire District as the project develops. About the District The Mendota Heights Industrial District is located in the southwestern corner of the City, bordered by 1-494 on the south, Highway 55 on the east, and Fort Snelling State Park on the west (see Figure 1). Highway 13 bisects the northern portion of the district. The District is a contiguous 425 acres, or 6.6% of the city, and is a large source of employment within Mendota Heights. The City estimates that forty people per acre are employed in this district. No new industrial areas within Mendota Heights are planned for the community. District Purpose Mendota Heights' Zoning Code notes the purpose of the Industrial District is to attract high quality industrial uses to the community. Hospitality and restaurant uses are considered as well, to support the area's large employment base. Mendota Heights' 2000 Comprehensive Plan includes the goal to support these uses as well as office uses to ensure stable employment in the city. Stantec Mendota Heights Industrial District Redevelopment Study Memorandum October 22, 2015 District Regulations The following sections outline specific regulations to properties within the Mendota Heights Industrial District including permitted and conditional uses and site requirements. Permitted Uses According to Mendota Heights' zoning code, uses permitted within the Industrial District include processing, fabrication, storage, manufacturing and wholesaling of a variety of materials and products. Other compatible non -manufacturing uses, such as business parks, research and development and trade schools (without housing), are also permitted in the district. Additionally, accessory uses necessary to the function of the primary uses, such as off street parking and fences, are also permitted. See Appendix A for a complete list of permitted uses. Conditional Uses Mendota Heights also allows an array of conditional uses within the Industrial District, to be allowed through a conditional use permit. Often, these uses support the primary uses of the district and include services and accessory retail. Appendix A also has a complete use of conditional uses. Site Requirements All uses, conditional and permitted, are required to adhere to landscaping, site and building maintenance requirements to ensure a clean and orderly environment. In order to ensure consistent design, adequate off street parking and appropriate screening, many conditional uses within the District are also subject to special site requirements. Parcel and Property Analysis In order to better understand the characteristics of the Mendota Heights Industrial District, staff worked to analyze parcel size, age of buildings, building and tenant types, vacancy rates, and land values. The following sections and Figures 2-7 illustrate these patterns within the district. Property Parcel Size Property parcel sizes in the Mendota Heights Industrial District range from .09 to 19.53 acres. However, the average parcel size is 3.25 acres. The majority of parcels are less than four acres, 69 percent of parcels within the district. Although there are 91 small parcels (less than four acres), often buildings span multiple parcels to achieve the necessary square footage. Table 1 and Chart 1 summarize the parcel size within the district. As illustrated in Figure 2, many of the larger parcels (six or more acres) are located in the northern part of the district. Currently, there are two very large parcels of undeveloped land in the district, one along Highway 55 and the other along Interstate 494. 2 Stantec Mendota Heights Industrial District Redevelopment Study Memorandum October 22, 2015 Table 1: Parcel sizes in the Mendota Heights Industrial District Parcel Size Number of Parcels Percent of Parcels Up to 2 Acres 51 38.9% 2 to 4 Acres 40 30.5% 4 to 6 Acres 23 17.6% 6 to 8 Acres 8 6.1 8 or more Acres 9 6.9% Chart 1: Parcel Size 7% d ria 18`70 3(ffa When Constructed ■Up to2Acres 2 to 4 Acres 4to6Acres 6 of 8 Acres 8 or more Acres Buildings throughout the industrial district range in age from very recently built to over fifty years old. The oldest properties in the district were built in the late 1940s and early 1950s and are typically residential properties. The oldest property is a vacant greenhouse which was built in 1925. The most recent buildings were constructed in 2014. Nearly thirty percent of buildings were constructed in the 1990s, the largest construction period in the district's history. Between 1980 and 1999, 64 properties were constructed, comprising nearly half (48.9%) of all properties in the district. Table 2 and Chart 2 summarize this data. As illustrated in Figure 3, properties constructed in the 1960s and 1970s tend to be located along Highway 13 on the western side of the district, whereas properties developed in the 2000s tend to be located near Highway 55 and Interstate 494, in the southeastern corner of the district. 3 Stantec Mendota Heights Industrial District Redevelopment Study Memorandum October 22, 2015 Table 2: Year built for properties within the Mendota Heights Industrial District Decade Built Number of Properties Percent of Properties Before 1960 11 8.4% 1960-69 7 5.3% 1970-79 14 10.6% 1980-89 25 19.1% 1990-99 39 29.8% 2000-09 8 6.1% 2010- Present 2 1.5% Chart 2: Decade Built a�® 307 Building Type 270 ■ Before 1960 ■ ➢960-69 ■ 1970-79 ■ 1980-89 ■ 1990-99 2000-09 2010- Present Properties within the Mendota Heights Industrial District can be divided by building type, depending on their use. The following building types are: Bulk Warehouse: Very large buildings (50,000 square feet or more) that are typically used for regional distribution. These properties need access to major arterial roads or highways due to a large volume of truck traffic. Convenience Store: Small scale retail, often selling a variety of products including food and beverages. These properties are often associated with gas stations. Flex: Buildings that can be used either for office or industrial purposes and can easily transition between either of those uses. These tend to be smaller in square footage than other industrial properties. Hotel: Temporary lodging for visitors. Land: Vacant, undeveloped property. Land can be previously undeveloped rural land, infill development in urban areas, or redevelopment of past properties. Office: Single or multi -tenant property used for professional offices. Office Warehouse: Industrial property that combines warehousing space with offices. Public Works: City of Mendota Heights Public Works facility. 4 Stantec Mendota Heights Industrial District Redevelopment Study Memorandum October 22, 2015 As shown in Table 3 and Chart 3, flex and bulk warehouse are the most common building types within the district. Together, these types comprise nearly sixty percent of all buildings in the district. Offices are also common within the district (19.1% of parcels). There are a few small-scale commercial and institutional uses within the district including the Courtyard Minneapolis- St. Paul and the Fairfield Inn and Suites, a Super America, a greenhouse, and the Mendota Heights Public Works facility. As illustrated in Figure 4, office properties and hotels tend to be located along Interstate 494. There is a large cluster of bulk warehouse properties located along Highway 55. Flex properties are located in the central and western portions of the district. Table 3: Building types in the Mendota Heights Industrial District Building Type Number of Parcels Percent of Parcels Bulk Warehouse 35 26.70 Convenience Store 1 0.7% Flex 39 29.8% Greenhouse 8 6.1% Hotel 3 2.30 Land 17 12.90 Office 25 19.1% Office Warehouse 2 1.5% Public Works 1 0.7% Chart 3: Building Type V 40 ° 30 (3 m20 Q Z 10 0 a Tenant Type Developed properties with in the Industrial District are either single or multiple tenant properties. The district is predominantly home to single tenant properties with 73 properties, or 55.7 percent, being single tenant. Table 4 and Chart 4 summarize tenancy in the district. Figure 5 illustrates the distribution of single and multiple tenant properties throughout the district. 5 ac c`` ee ,ac �•o 0151 to 0 Tenant Type Developed properties with in the Industrial District are either single or multiple tenant properties. The district is predominantly home to single tenant properties with 73 properties, or 55.7 percent, being single tenant. Table 4 and Chart 4 summarize tenancy in the district. Figure 5 illustrates the distribution of single and multiple tenant properties throughout the district. 5 Stantec Mendota Heights Industrial District Redevelopment Study Memorandum October 22, 2015 Table 4: Tenant Types in the Mendota Heights Industrial District Tenant Type Number of Parcels Percent of Parcels Single Tenants 73 55.7% Multiple Tenants 42 32.1% Chart 4: Tenant Type Vacancy Rate a Single Tenant FItiple Tenant N/A Vacancy rates within the Industrial District are generally very low: 92 properties, or 70.2 %, are currently totally occupied (0% vacant); only 23 properties, or 11.4 %, have more than 20% vacancy rates. Table 5 and Chart 5 summarize vacancy rates for properties in the district. As illustrated in Figure 6, properties with available space are concentrated along Interstate 494 and in the southern part of the district. Land in the northern part of the district is almost entirely occupied; with only four properties north of Mendota Heights Road have any vacant space. Table 5: Vacancy rates in the Mendota Heights Industrial District Vacancy Rate Number of Parcels Percent of Parcels No Vacancy 93 70.4% Up to 10% vacant 4 3.1% 10% - 20% vacant 12 9.2% 20% - 30% vacant 6 4.6% 30% - 40% vacant 1 0.7% More than 40% vacant 15 11.3% 151 Stantec Mendota Heights Industrial District Redevelopment Study Memorandum October 22, 2015 Chart 5: Vacancy Rate Land Value ■ No Vacancy ■ Up to 10% vacant * 10% - 20% vacant 20% - 30% vacant 30% - 40% vacant ! ore than 40% vacant Land Value in the Mendota Heights Industrial District ranges from $0.81 per square foot to $16.31 per square foot. Despite this range, the majority of properties are $4 to $5 per square foot. The median and average value of land per square foot in the district also falls in this range at $4.00 and $4.11 respectively. Table 6 and Chart 6 summarize property values in the district. As illustrated in Figure 7, land along Interstate 494 is the highest in value, with almost all of the properties in that area (76.9%) being valued at $5 or more per square foot. This pattern may be attributed to higher visibility and access along 1-494 than elsewhere in the district. Lower valued properties tend to be located in the northern parts of the district or on small, oddly shaped parcels. Table 6: Property values per square foot in the Mendota Heights Industrial District Property Value(per square foot Number of Parcels Percent of Parcels Up to $1 2 1.5% $1 to $2 4 3.0% $2 to $3 11 8.4% $3 to $4 33 25.2% $4 to $5 59 45.0% $5 to $6 6 4.6% Over $6 13 9.9% 7 Stantec Mendota Heights Industrial District Redevelopment Study Memorandum October 22, 2015 Chart 6: Property value per square foot Ln v L 60 a o 40 L v E 20 Z 0 Up to $1 $1 to $2 $2 to $3 $3 to $4 $4 to $5 $5 to $6 Over $6 Mendota Heights and Regional Market Analysis A team of real estate specialists from Cushman -Wakefield developed a series of market snapshots for Mendota Heights and the Minneapolis- St. Paul Region. These snapshots illustrate the strength of the region and improvements to the local economy. Appendix B includes these full snapshots. Across the Twin Cities, business continues to grow. Net employment numbers have increased, unemployment rates have decreased and vacancy rates are well below the historical average. Average asking rents are predicted to increase over the next year as vacancy levels decline. This regional economic growth is summarized below: Employment: 1.891 Million Unemployment rate: 3.57% Labor participation rate: 79.8% which is one of the highest rates in the country Percent of major industries with positive job additions: 81.8% The industrial market is also strong, both regionally and nationally. Like other sectors, it is projected that rents will continue to increase, while vacancy continues to decrease. Across the US, all major regions are experiencing industrial growth. While industrial rents are slightly lower in the Mendota Heights area than elsewhere in the MSP Region, vacancy continues to decline, suggesting growth in the area. Local and national rates and rents for industrial properties are compared in Table 7. Table 7: Industrial Market Summary Mendota Heights (SE Twin Cities Region National Twin Cities Region) Vacancy Rate 8% 9.3% 7.3% Average Asking Rent $4.11 $4.70 $5.42 (per square foot E:3 Stantec Mendota Heights Industrial District Redevelopment Study Memorandum October 22, 2015 While office vacancy rates are slightly higher across the US than industrial vacancy rates, these properties are also increasing in occupancy and in asking rents. Because this category is much broader, including offices in industrial areas and business parks to towers in America's downtowns, there is a large variation in average asking rent. Despite this range, growth in this sector is expected both at a local and national level. Table 8 summarizes local and national rents and vacancy rates for the office sector. Table 8: Office Market Summary Mendota Heights (SE Twin Cities Region National Twin Cities Region) Vacancy Rate 18.2% 14.2% 14.2% Average Asking Rent $12.73 $14.79 $22.92 (per square foot Airport Safety Zones The Mendota Heights Industrial District is located just across the Minnesota River from the Minneapolis- St. Paul International Airport (MSP). The airport is an important feature in the community and internationally, servicing over 400,000 flights and 35 million passengers in 2014. MSP is the 15th busiest airport in the United States and the 44th busiest airport in the world'. The Metropolitan Airport Commission (MAC) has developed safety zones and set regulations to ensure the safety of air travel in the area. Safety zones within the Mendota Heights Industrial District include zones B and C, both located at the far eastern edge of the district. Within these zones, certain height and land use restrictions apply2. See Figure 8 for the exact location of the airport safety zones within the Mendota Heights Industrial District. Transit Transit options within the Mendota Heights Industrial District are limited. Metro Transit, the regional transit authority, serves the district through one regular and two limited service routes. The routes are listed below: Route 446: Connects Mendota Heights to the 46th Blue Line LRT station in Minneapolis. This bus runs approximately every 30 minutes during normal weekday hours. Route 415: Connects riders from the Mall of America to Mendota Heights. This bus only runs East during the weekday morning rush period and West during weekday the afternoon rush period. Route 436: Connects riders from the 46th Street LRT station in Minneapolis to Eagan via Mendota Heights. This bus only runs South during the weekday morning rush period and North during weekday the afternoon rush period. ' http://www.mspairport.com/about-msp/statistics.aspx 2 Refer to Section V.6.3 of MSP Zoning Ordinance for specific regulations Stantec Mendota Heights Industrial District Redevelopment Study Memorandum October 22, 2015 As illustrated in Figure 9 on the following page, increased transit development is planned for the greater Twin Cities region: however, these routes will not connect to the Mendota Heights Industrial District. The closest regional transit routes will continue to be the Blue Line LRT, the Red Line express bus, as well as proposed bus rapid transit (BRT) lines in St. Paul, Richfield and Bloomington. High speed rail connecting the Minneapolis -St. Paul Metro to Rochester is also currently being studied. This 100 -mile project would connect the MSP Airport and/or downtown St. Paul to medical and research facilities in Rochester, traveling at speeds of over 150 miles per hour. While the rail alignment may pass near the Mendota Heights Industrial District, only one intermediate stop along the line, in Southern Dakota County, is currently being considered. The Olmstead County Regional Railroad Authority and Minnesota Department of Transportation are currently working with the Federal Railroad Administration to create a Phase 1 Environmental Impact Statement. Studies to determine the feasibility of the project are expected to take approximately six years. Survey of Strengths/Weaknesses A survey was sent by city staff to owners, tenants, and property managers in the District. While there are many strengths in the District, such as its location and access, a lack of supporting services present an opportunity for the area. Like any aging development, deteriorating infrastructure and challenges associated with redevelopment are perceived as threats. Figure 10, SWOT analysis - short for Strengths, Weaknesses, Opportunities and Threats - summarizes the responses. The Future of Industrial Parks The future of industrial uses and industrial parks is often unclear and being pulled in numerous different directions, depending on the local economy, needs of the surrounding community and general market trends. The following trends are taken from research on the future of industrial parks in America and Western Europe. The future of the Mendota Heights Industrial District may follow some of these trajectories or continue to serve the current tenants and their needs. Further engagement with key stakeholders will illuminate which paths are most feasible for the area. Read more about each of these trends in the attached articles in Appendix B. Trend l: Large warehousing facilities are needed. With the increase of e-commerce and online shopping, large distribution centers are increasingly important. Consumers, particularly residents of large cities, are expecting quick delivery of a variety of goods. Trend 2: Flexibility is critical. The economy is changing and traditional manufacturing and processing are often completed overseas. Facilities should be easily converted from single to multiple tenants or have the opportunity to expand if necessary. Trend 3: Sustainability is key. Throughout Western Europe, eco -industrial parks are gaining popularity. These developments feature a number of environmentally friendly measures including cleaner processes, less traffic congestion, water management, and increased E Stantec Mendota Heights Industrial District Redevelopment Study Memorandum October 22, 2015 recycling. These sites also tend to provide jobs to local residents and training programs to young adults. Trend 4: Telecommuting and transit. Traditional travel and work patterns are changing. Many Americans are now able to work from home or remotely, especially in office settings. Similarly, automobile ownership is down among young people and transit ridership in the Twin Cities is the highest it has been since the 1950s. Ensuring that workplaces are flexible and easily accessible to employees is becoming increasingly important. Trend 5: The "Third Industrial Revolution'. New technology has enabled the shift in production from 'mass production to mass customization'. With 3D enhanced design and production, such as 3D printers. Additionally, production has become much easier and more accessible to all people, changing the dynamic between traditional producers and consumers. This may reduce the need for large, separate, dedicated industrial parks in favor of numerous scattered production sites. Trend 6: Decline and reuse. Many industrial sites around the US have become derelict and obsolete. These spaces are being reused as parks and gathering spaces, taking on new meanings to the communities surrounding them. Gas Works Park in Seattle and Fresh Kills Park in New York are examples of this industrial redevelopment. 47 65 77 62 55 13 51 36 RK 55 M! Property Parcel Size Figure 2 Industrial Zoning District Redevelopment Plan 0 1,000 2,000 Feet N Source: Dakota County October 2015 0 Up to 2 Acres 2 to 4 Acres 4 to 6 Acres 6 to 8 Acres = 8+ Acres 10/13/2015 City of MjMendota Heights V:\1938\active\193803260\GIS\Projects\Parcel Size.mxd Year Built Figure 3 Industrial Zoning District Redevelopment Plan 0 1,000 2,000 Feet N Source: Dakota County October 2015 0 1925 - 1959 0 1990 - 1999 0 1960 - 1969 0 2000 - 2009 10/20/2015 0 1970 - 1979 = 2010 - 2014 city of 1980 - 1989 No Data Mj Mendota Heights V:\1938\active\193803260\GIS\Projects\Year Built.mxd Building Type Figure 4 Industrial Zoning District Redevelopment Plan ,\ 0 1,000 2,000 Feet N Source: Dakota County October 2015 Flex 0 Hotel 0 Land 0 Office 0 Greenhouse Convenience Store 0 10/14/2015 Office Warehouse 0 Bulk Warehouse city of 0 Public Works M Mendota .j Heights V:\1938\active\193803260\GIS\Projects\Building Type.mxd Building Tenant Type Figure 5 Industrial Zoning District Redevelopment Plan 0 1,000 2,000 Feet N 0 <all other values> 0 Single Tenant 0 Multiple Tenant 0 Open Land 10/14/2015 City of MjMendota Heights Source: Dakota County October 2015 V:\1938\active\193803260\GIS\Projects\Building Tenant Type.mxd Vacancy Rate Figure 6 Industrial Zoning District Redevelopment Plan ,\ 0 1,000 2,000 Feet N Source: Dakota County October 2015 Open Land No Vacancy =Up to 10% Vacant 0 10% to 20% Vacant 20% to 30% Vacant 0 10/20/2015 30% to 40% Vacant ® More than 40% Vacant city of Mendota Heights V:\1938\active\193803260\GIS\Projects\Vacancy Rate.mxd Parcel Land Value Industrial Zoning District Redevelopment Plan ,\ 0 1,000 N Source: Dakota County October 2015 Figure 7 Up to $1 per Squarefoot 0 $4 to $5 per Squarefoot 0 $1 to $2 per Squarefoot $5 to $6 per Squarefoot 10/13/2015 0 $2 to $3 per Squarefoot Over $6 per Squarefo( City of 2,000 Feet 0 $3 to $4 per Squarefoot M Mendota Heights V:\1938\active\193803260\GIS\Projects\Land Value.mxd Airport Safety Zones Figure 8 Industrial Zoning District Redevelopment Plan ,\ 0 1,000 2,000 Feet N Source: Dakota County October 2015 MSP Safety Zone B 10/13/2015 Q MSP Safety Zone C City of 0 Project Properties Mendota Heights V:\1938\active\193803260\GIS\Projects\Airport Safety Zones.mxd le 4 r ir e r� �r f irl qfdl& F"P* r r r qr • s 96 ij ` r MW jL ® 4yr� ti's r F e 4"a err � -1�af� � Jr�,.Y - ��` a3A2r �•,fes �ef _• 1. a` JA' f .� j �i !y i f �� s -�. i�'1,.' .,• g - f Jam. Stantec Mendota Heights Industrial District Redevelopment Study Memorandum October 22, 2015 Figure 10: Redevelopment Study SWOT Analysis KEY: Property Owner Tenant/User Broker/investor/'Property Manager Source: Com piled from stakeholder survey responses 21 STRENGHTS Regional location WEAKNESSES Limited opportunity for physical growth Airport access Lack of retail services in the area Freeway access Lack of restauarants in the area Lower/reasonable tax rate Lack of sidewalks in the area Quality city services Market competitiveness Market area Vacancy Outdoor storage Zoning limitations (land uses) Diversified tenants Limited access from 1-494 to STH 55 Professional image Airport noise Labor force access Semi -truck traffic Zoning flexibilty Traffic congestion Large corporate users in the market Limited new development opportunities Executives living in Mendota Heights Not enough manufacturing businesses Wide range of industrial -users Disadvantages compared to the rarest metro submarkets OPPORTUNITES Lack of regional recognition THREATS Retail service/restaurant uses Com petition/incentivesfrom other cities improved market may attract more industrial users Outsourcing to companies outside of LISA or MN Great location may drive rates up Vacancy Additional green space Deteriorating roadways Improved access to 1-494 to STH 55 Lack of land to develop amenities Redevelopment of older sites Ability to get skilled workforce Maintain low taxes Perception of lack of amenities Fair tax rate Growth -restricting regulations Ability to attract high-density office Users Unneccessary regulations Niche development Perception that industrial users are not desired Market as a destination for businesses Source: Com piled from stakeholder survey responses 21 Stantec Mendota Heights Industrial District Redevelopment Study Memorandum October 22, 2015 Appendix A Permitted Uses The processing, fabrication, storage, manufacturing or wholesaling of one or more of the following uses is permitted: Aeronautic and automotive testing equipment. Apparel. Appliances. Artificial limbs. Automobile painting, upholstering, tire recapping and major repair when conducted within a completely enclosed building. Bakery goods. Batteries. Boats. Bus terminals and maintenance garage. Cabinet shops. Camera and photographic supplies. Canvas products. Ceramic products using kilns fired only by electricity or gas. Cigarettes and tobacco products. Clocks, watches and jewelry. Cork and cork products. Drugs, cosmetics, pharmaceuticals and toiletries. Electric motors, generators, transformers and other electric components. Electronic products. Engraving and printing. Furniture. Heating, washing, cooling, drying, cleaning appliances. Ice, cold storage plants, bottling works. Laundries. Machine shops. Metal polishing and plating. Monument works. Musical instruments. Office equipment. Paint manufacturing. Paper products from previously processed paper. Research laboratories. Rubber and synthetic rubber products. Sheet metal work, ornamental iron, welding, and stamping. Shoes, boots, footwear. Sporting equipment. Television, radio. Tools, hardware and small metal products. Video equipment. 22 Stantec Mendota Heights Industrial District Redevelopment Study Memorandum October 22, 2015 The following non -manufacturing uses are also permitted: Business and professional offices. Landscaping and building design and construction. Railroad spurs and sidings. Scientific research, investigation, testing and experimentation. Trade schools and colleges or universities, without accessory housing. Warehousing. Water softening units. Conditional Uses Accessory, enclosed retail sales Accessory structures. Adult daycare. Airports, truck and freight terminals, team tracks and open sales lots. Athletics, participative. Automobile and other vehicles of transportation sales when conducted entirely within a building. Essential service structures. Massage therapy services to the general public for purposes of a teaching program accredited by the National Certification Board For Therapeutic Massage And Bodywork and the Accrediting Commission Of Career Schools And Colleges Of Technology as an accessory use to trade schools, colleges, and universities in which no fee is charged for the services. Motel and hotel. Motor fuel stations subject to the requirements of section 12-1 D-13-3 of this chapter. Outdoor storage and display of materials and equipment accessory to landscaping and building design and construction Radio, television or transmission towers. Ready mix concrete and concrete products plants. Restaurants (full service dining, not drive-in or convenience/fast food type). Retail sales and service complexes. Trade schools, colleges, and universities with accessory housing for the students of the school only. 23 (3 Stantec Mendota Heights Industrial District Redevelopment Study Memorandum October 22, 2015 Appendix B - Snapshots of Local and National Economy and Industrial Sectors (Separate attachments) 24 Stantec Mendota Heights Industrial District Redevelopment Study Memorandum October 22, 2015 Appendix C - Articles on the Future of Industrial Parks 25 10/15/2015 The View From E.CON: The Future of Industrial Real Estate Is E-commerce I NAIOP NA10P COMMERCIAL REAL ESTATE DEVELOPMENT ASSOCIATION Home/ Development Magazine /Development Magazine Summer 2014 /Business/ Trends / The View From E.CON: The Future of Industrial Real Estate Is E-commerce BUSINESS - TRENDS The View From E.CON: The Future of Industrial Real Estate Is E-commerce By: Julie D. Stern, managing editor, Development Summer 2014 The expanding world of e-commerce is rapidly and forever changing the way that goods are bought and sold — as well as how they are transported, stored and distributed. Brick -and -mortar retailers are adopting multichannel distribution models, many "pure play" e-commerce retailers are growing exponentially while also expanding into physical storefronts, and the warehousing and logistics industries are innovating and adapting to gain and maintain market dominance. Industrial developers, owners and investors who can provide the types of facilities that e-commerce needs will survive and thrive during the next decade. But forecasting and understanding those needs is no easy task. Almost 300 industry members gathered at NAIOP's inaugural E.CON —the E-commerce Conference, subtitled "Industrial Real Estate in an On -demand World," in Phoenix on March 27 and 28 to learn more about the impacts of e-commerce and the opportunities they present for commercial real estate. As NAIOP Chairman Jean Kane noted in her welcome to the conference, "The speed at which e-commerce orders are processed and goods are transported through a variety of channels is changing industrial facilities — how we're building them, how we're operating them, how we're managing them." http://www. naiop.org/enIM agazi ne/2014/Sum m er-2014/Busi ness-TrendsIThe-View-From- EC ON .aspx?p=1 1/10 10/15/2015 The View From E.CON: The Future of Industrial Real Estate Is E-commerce I NAIOP Keynote speaker and supply chain guru Dr. Jim Tompkins, CEO of Tompkins International, kicked off NAIOP's inaugural E.CON conference, which focused on "industrial real estate in an on -demand world." Gudenschwager Photography Inc. The Pace of Change Supply chain guru Dr. Jim Tompkins, CEO of Tompkins International and a recognized authority on e-commerce, kicked off the conference by addressing the pace of change now taking place in the retail world. "It's my view thatthe pace of change in 2013 is 10 times greater in retail than itwas 10 years ago. In the last decade, the rate of change in retail has been multiplied by 10. And [the rate of change in] 2014 is going to be substantially greater than 2013." "Industrial real estate in an on -demand world," Tompkins continued, means that "you need to develop the capability to identify land, buy it, do the environmental stuff, get it permitted, get it built, get it commissioned, put in the equipment and be ready to go... in 30 days!" While that's clearly impossible, "you need to anticipate, to come up with the plans, well in advance of what you needed to do in the past," he said, adding that "the dude that's got the building wins the business." What trends will have the biggest impacts on industrial real estate in the coming months and years? Tompkins cited two: omnichannel and "get local" (GL). He described how customer retail connectivity is evolving from single -channel sales (in a store or online) to multichannel, cross-channel and finally personalized omnichannel sales (where the channels are invisible, the sales process feels the same no matter how customers interact with the retailer, and each customer has a unique experience with that retailer). Providing a personalized omnichannel experience, he said, can result in sales figures as much as four times higher than single -channel retail sales. Rene Circ, director of industrial research for PPR/CoStar, moderated a panel titled "Getting a Grip on the New E-commerce Marketplace," at which Garrick Brown, director of research, Cassidy Turley Northern California; Chris Caton, vice president, research, Prologis; and Maria Sicola, executive managing director and head of Americas research, Cushman & Wakefield, discussed how retailers are adapting to today's omnichannel world. Gudenschwager Photography Inc. http://www. naiop.org/en/M agazi ne/2014/Sum m er-2014/Busi ness-TrendsIThe-View-From- EC ON .aspx?p=1 2/10 10/15/2015 The View From E.CON: The Future of Industrial Real Estate Is E-commerce I NAIOP What does all that have to do with real estate? It is having a huge impact on distribution channels, as retailers move from using distribution centers (DCs) that supply goods to stores, to using combined distribution and fulfillment centers (DCs/FCs) that can supply those goods both to stores and to consumers placing orders online. Those facilities create valuable synergies and allow retailers to maximize their real estate, labor, automation and technology expenditures. Thus many traditional DCs now are being converted to DCs/FCs and new mega-DCs/FCs and FCs are being built. The locations of those DC/FCs and FCs will be critical to their success. That's where GL comes in. "Getting local is probably the largest trend that will occur in 2015 that people are thinking about in 2014 that they couldn't even begin to think about in 2013," stated Tompkins. What does GL mean? Customers in major U.S. cities have very different expectations for service than those in small towns and rural areas. For many retailers, future sales — and profits — will be dependent on how quickly goods can be delivered to customers in major metro areas, Tompkins asserted: "the quicker you deliver, the more you're going to sell." Increasing speed of delivery means creating a quicker supply chain in which goods have less distance to travel from FC to customer — which is what GL is all about. The bottom line, according to Tompkins, is that: DCs, FCs and DCs/FCs should be located in highly populated areas; Speed of delivery drives revenue; The network of DCs, FCs and DCs/FCs is complex and changing; and Third -party logistics providers (3PLs) have a different role to play than they have had in the past. Location and End User Needs Tompkins' comments were echoed by many of the conference's more than two dozen other speakers throughout the next day and a half. At a session titled "The End User's Perspective on Site Selection," industry experts stressed the importance of location and end user needs. It quickly became clear that while retailers want new fulfillment centers that can become operational as quickly as possible, most are not looking for speculatively built properties. Questions from E.CON attendees sparked riveting discussions. Gudenschwager Photography Inc. "Every end user has different specific needs," noted session moderator Scott Belfer, senior vice president at CBRE Inc. and a leader in the firm's e-commerce group. Executives from retailers Newegg Inc. and The Home Depot agreed that build -to -suit projects make the most sense for their businesses, as did Doug Armbruster, senior vice president and regional marketing director for developer IDI Inc. http://www. naiop.org/en/M agazi ne/2014/Sum m er-2014/Busi ness-TrendsIThe-View-From- EC ON .aspx?p=1 3/10 10/15/2015 The View From E.CON: The Future of Industrial Real Estate Is E-commerce I NAIOP All ofthe panelists noted that they expect these specialized facilities to take longerto build than a traditional warehouse or distribution center. But the need for additional time to complete complex internal buildouts puts developers under increased pressure to complete construction of the base building as quickly as possible. Mark Holifield, senior vice president for The Home Depot, estimated that it can take more than a year to get a new Home Depot FC up and running. Kunal Thakkar, senior vice president of operations for e-commerce retailer Newegg, noted that the technology alone can take five to eight months to install. (Panelists at other sessions concurred, and several noted that installing servers and material handling systems can take as long as building construction.) To speed up Newegg's ability to start producing at a new facility that IDI began building in Indianapolis last year, the developer is completing the FC in phases, launching an area for bulk shipments in April while aiming to have its individual fulfillment capacity up and running in August. In terms of location, panelists noted the importance of locating facilities within a two-day delivery radius of major population centers and near parcel delivery and other transportation hubs. The availability of transit service for employees also is becoming important, added Holifield. Jon DeCesare, president of World Class Logistics Consultants, moderated a panel on the role of 3PL providers that featured speakers David Parks, managing director, FedEx Trade Networks, Lonny Warner, vice president of operations, technology and logistics services for Menlo Worldwide; and Bruce Welty, CEO of Quiet Logistics. Gudenschwager Photography Inc. Because technology and customer expectations are evolving so rapidly, even build -to -suit properties need to be flexible enough to adapt over time, panelists stressed. Armbruster advised developers to design new projects that are bigger, deeper, taller, and have stronger floors and more widely spaced columns than traditional DCs. New properties also should be expandable and well insulated, with smart lighting and temperature control systems. "Think future changes in environmental controls and stormwater requirements, notjust e-commerce needs," he advised. Because technology and consumer demands are changing so rapidly, Thakkar concluded, "you have to be flexible enough to cater to any changes right away." Vital Building Elements Panelists discussed changing site selection and building element requirements at several additional E.CON sessions. During one titled "Building Elements 101: Specific Factors to Accommodate E-commerce," Jim Condon, chief development officer for Seefried Industrial Properties, noted that "finding sites is especially important as it grows harder to line up desirable locations." http://www. naiop.org/en/M agazi ne/2014/Sum m er-2014/Busi ness-Trends/The-View-From- EC ON .aspx?p=1 4/10 10/15/2015 The View From E.CON: The Future of Industrial Real Estate Is E-commerce I NAIOP Once identified, he added, getting those sites entitled for DC/FC use early on helps speed up the development process. Condon also noted that in terms of the level of investment required for complex material handling systems, today's DCs/FCs are more like manufacturing facilities than traditional warehouses. "From an investment standpoint, you have to feel really good about the tenant being there for a long time." Philip Prassas, senior vice president, KTR Capital Partners, moderated a panel titled "Technological Advances to Manage E-commerce," atwhich Steve Johnson, principal, Johnson Stevens Consulting; Bryan Jensen, principal, St. Onge Co.; and Carlos Vega, western region sales manager, Dematic Corp., discussed the impacts of automation and other leading-edge technology on e- commerce fulfillment center designs and operations. Gudenschwager Photography Inc. Matt Brady, regional vice presidentlarchitect for Ware Malcomb, advised developers to ensure maximum flexibility as they plan for development, suggesting that buildings be designed so that they can be converted from single- to multitenant use or vice versa. He also urged developers to be aware of building code changes, such as one that has reduced the allowable distance that an employee has to travel to reach an exit. As e-commerce facilities get bigger, with more mezzanine levels, such code requirements become more challenging to meet. Building heights also are critical, Brady added, since they determine how many mezzanine levels can be accommodated. More e-commerce facilities are now being built with 40 -foot clear heights, which can accommodate an additional mezzanine level and thus significantly increase productivity. The larger staffs required by e-commerce facilities means these buildings have increased parking, power, HVAC, bandwidth (WiFi and fiber optics), lighting and security needs, noted several panelists at a session titled "E-commerce Logistics: The Role of 3PL Providers." Bruce Welty, CEO of Quiet Logistics, which provides fulfillment services for small luxury apparel companies, also commented on the importance of cleanliness. Painted floors and dust filters can make a real difference in keeping goods clean, he noted. High ceilings also are important, as much from the lender's perspective as the FC operator, Welty added: "Even Amazon has problems filling up the space above the racks ... but understand that if you don't have high ceilings, banks won't lend you money." Other speakers at the 3PL session focused on the importance of understanding and complying with global importlexport regulations and requirements and managing associated expenses. David Parks, managing director of FedEx Trade Networks, http://www. naiop.org/en/M agazi ne/2014/Sum m er-2014/Busi ness-Trends/The-View-From- EC ON .aspx?p=1 5/10 10/15/2015 The View From E.CON: The Future of Industrial Real Estate Is E-commerce I NAIOP spoke about the importance of understanding "what's prohibited where" in the rapidly growing arena of international e- commerce, the differences between international and domestic regulations and the importance of understanding total transaction costs which, for international e-commerce, include duties as well as shipping costs and taxes. Lonny Warner, vice president of operations, technology and logistics services for Menlo Worldwide, commented on the importance of speed in getting an FC up and running, noting that Menlo recently was able to take a 2 million -square -foot Amazon facility operational in 65 days (from taking the keys to the building to being able to ship product out); it did the same for three smaller facilities (365,000 to 695,000 square feet) in less than a month last summer. John DiVall, senior vice president of Liberty Property Trust, moderated a panel on investment in e-commerce properties. Gudenschwager Photography Inc. Process, Incentives and Taxes Security also plays a particularly important role in location decisions, noted 3PL session moderator Jon DeCesare, president of World Class Logistics Consultants: "Facilities in high crime areas are unattractive to shippers and 3PLs; ... that's one of the elimination factors." Panelists at a session titled "Process, Incentives and Taxes, Oh My!" discussed this and other additional site selection criteria. Brian Camp, a partner with ProVenture LLC, echoed DeCesare's comment about security, noting that "you may have $1 billion of inventory in a [FC] building," and adding that the location of parking as well as building entrances and exits are important elements in any security plan. On the transportation side, foreign trade zone (FTZ) status is becoming more important, noted panelist Curtis Spencer, president of IMS Worldwide Inc. FTZ, a federal program started in 1934 that is now in use in all states, allows federal taxes and fees to be lowered, eliminated or exempt from payment for businesses located within FTZs. (In Texas and Arizona, businesses located in FTZs also pay much lower state taxes.) A business located in an FTZ, Spencer noted, could save almost $800,000 a year in merchandise processing fees, making these zones extremely attractive to e-commerce players. Marcus Panasewicz, senior manager with Deloitte Tax LLP, commented on the types of incentives packages that states and municipalities are offering e-commerce facility developers and operators: "A lot of these are the same incentives you see all over the country for manufacturing operations: property tax abatements, sales and use tax exemptions or rebates" and provisions of infrastructure. Camp added that these incentives can be significant; for two recent Amazon fulfillment centers in Tampa and Lakeland/Winter Haven, Florida, the e-commerce titan received incentives worth about $7.5 million for roughly 374 jobs and $4.5 million for about 100 jobs, respectively, primarily in the form of property tax breaks and jobs incentives. http://www. naiop.org/en/M agazi ne/2014/Sum m er-2014/Busi ness-TrendsIThe-View-From- EC ON .aspx?p=1 6/10 10/15/2015 The View From E.CON: The Future of Industrial Real Estate Is E-commerce I NAIOP E.CON attendees enjoyed meeting and networking with colleagues at a welcome reception. Gudenschwager Photography Inc. In addition to the jobs they bring to an area, FCs also represent significant capital investments, Camp added, ranging from $10 million to $20 million in material handling equipment. Spencer took that example one step further, estimating that the value of the equipment in an e-commerce FC typically is at least as valuable as the building itself: "If it's a $50 million building, it's going to have $50 million worth of equipment." A regular DC, he noted, might have only $5 million worth of equipment. Panasewicz reminded attendees that developers and business owners often forget that they can get credits and incentives for that equipment, including income tax credits, property tax abatements and sales tax exemptions. But all of those need to be negotiated upfront and documented afterwards in a timely manner, something that many fail to do. Gopika Parikh, financial services credits and incentives leader for Ernst & Young LLP, added that incentives packages for e- commerce data centers typically are driven by capital expenditures, noting that 15 states have data center -specific incentives." Green (energy efficiency) incentives also can be layered with other types of incentives, she noted, resulting in incremental benefits. Investing in E-commerce The final E.CON session examined "The `Do's and Don'ts" of Investing in E-commerce." Moderator John DiVall, senior vice president with Liberty Property Trust, focused on underwriting, how some e-commerce facility transactions are structured and how developers exit out of e-commerce projects. Investors, he noted, are still struggling to get comfortable with the idea that what were once considered above -standard tenant improvements (Tis) in these types of facilities are rapidly coming to be viewed as standard. Jack Fraker, vice chairman and managing director of CBRE's capital markets and industrial practice, presented three brief case studies of e-commerce building sales. Cap rates for these sales, all in secondary and tertiary Southeastern U.S. markets, were plus or minus six; if they had been in Dallas or Los Angeles, he added, they might have been closer to five. Big pension fund http://www. naiop.org/en/M agazi ne/2014/Sum m er-2014/Busi ness-Trends/The-View-From- EC ON .aspx?p=1 7/10 10/15/2015 The View From E.CON: The Future of Industrial Real Estate Is E-commerce I NAIOP advisers, Fraker noted, who "for years were pure financially oriented acquisition officers and underwriters, now really buy into this supply chain story," and are extremely interested in e-commerce facilities. Other speakers agreed that major changes in how investors view e-commerce buildings have taken place during the past three or four years. "There has absolutely been a shift [in the way institutional investors look at e-commerce facilities]; it's the norm now," said Bo Mills, head of Western U.S. Industrial Capital Markets for JLL, adding that "if you're not buying e-commerce, you're probably not in the real estate business right now." E.CON Attendees Tour Macy's Fulfillment Center A tour of the Macy's and Bloomingdale's state-of-the-art, direct -to -consumer fulfillment center in Goodyear, Arizona, was a high point of E.CON for many conference attendees. The 1 million -square -foot facility, which opened in 2008 and was expanded by 360,000 square feet in 2013, contains 2 million square feet of operating space. It employs 800 year-round associates and as many as 3,500 workers during the busy fourth-quarter peak shopping season. After being welcomed to the facility by Macy's Vice President of Operations Leonard Velazquez and city of Goodyear Mayor Georgia Lord, participants got an up -close look at how this massive facility operates, from the receiving dock through various "back -of -store" storage areas, the "nerve center" (where employees monitor nine large screens displaying operations information), 17 miles of conveyor belts, more than 430 packing stations and an area where goods returned by customers are processed and clothing items steam -cleaned before being returned to stock. The center, which is the only one to serve the western part of the U.S. (the next closest facility is in Tennessee), receives 20 million units of merchandise per year via truck and processes orders from customers for almost all product types (everything but fine jewelry and large furniture). Watching many of those items — shoeboxes, polybagged shirts, toasters, bedding and more — zip by on the conveyor belts before being deposited onto tilt trays that dropped them into packing stations, where employees check and pack each order, was a fascinating experience. In addition to fulfilling e-commerce orders, the center also services Macy's stores in the Phoenix area and as far away as Las Vegas. During the busy winter holiday season, the facility operates 24/7 with three shifts and stocks 250,000 to 350,000 distinct items. It sits on a 25 -acre site within the 250 -acre Goodyear Crossing Industrial Park. The park is still being developed by Duke Realty, which built the Macy's center as well as an Amazon.com fulfillment center on the same street. On their way to and from the center, participants enjoyed a windshield tour of Goodyear's many other industrial parks, infrastructure and development sites narrated by tour organizer Harry Paxton, project manager for the city's economic development division's development services department and his associate Christian Green. http://www. naiop.org/en/M agazi ne/2014/Sum m er-2014/Busi ness-TrendsIThe-View-From- EC ON .aspx?p=1 8/10 10/15/2015 The View From E.CON: The Future of Industrial Real Estate Is E-commerce I NAIOP Are all e-commerce retailers chasing the holy grail of same-day delivery? The answer from E.CON is a resounding "no." While some customers in some markets will pay a premium to get some kinds of goods within a few hours, most customers in most places are willing to wait longer for most goods — particularly if it means paying a lesser or no delivery fee. Mark Holifield, senior vice president with The Home Depot, explained that while most Home Depot customers like having the option of two-day delivery (and professional customers already have the option of same-day delivery —which Home Depot fulfills from its stores), most currently chose the lower-cost option of third -day delivery. Research conducted by online retailer Newegg indicated that fewer than 10 percent of customers are interested in same-day delivery, a very small segment of the market. Same-day delivery is a bigger issue for pure play e-commerce retailers, Holifield noted, since most customers have the option of going to a store if they really need an item "same day." Keynote speaker Jim Tompkins framed the discussion of "how fast is fast" with the comment that it depends on many factors, including location, customer age and gender and, most importantly, product type. "Fast," for grocery deliveries, he noted, means same day; for luxury items, it means next day; for electronics, two days; for small kitchen appliances, three days; for larger appliances, four days; and for garden items, seven days. Customer expectations continue to increase, he added, noting that "fast for 2014 is next day to two days; fast for 2015 will be same day to next day." What does all of this mean for commercial real estate? Faster -than -two-day delivery for many products will require e-commerce retailers to set up more (but smaller) fulfillment centers in more urban areas, meaning that multistory facilities (like those Prologis and others already operate in Japan) may begin to make sense because of higher land costs. Related Links Outside the Box Industrial Strength Challenges in the 21st Century E-commerce, supply chain optimization, logistics, transportation infrastructure, and labor force availability. What do these terms mean and how do they impact industrial real estate? Find out how today's industrial users, investors, and developers are addressing these and many other challenges as they conduct business in the 21 st century. E -Commerce and How it Will Change Industrial Real Estate The global consumer shifttoward electronic -commerce, mobile device supported commerce, and social media supported commerce is changing how the retail and warehouse industries operate. This session provides you with a broad view of the new and growing logistics sector, and presents the new supply chain decisions, building types and site selection parameters http://www. naiop.org/en/M agazi ne/2014/Sum m er-2014/Busi ness-TrendsIThe-View-From- EC ON .aspx?p=1 9/10 10/15/2015 The View From E.CON: The Future of Industrial Real Estate Is E-commerce I NAIOP necessary to support the future explosive growth of this sector. From the Archives: Business / Trends Articles from the Previous Issue 10 Tips for Growing a Private, Non -Family -Owned Business Development Magazine Spring 2014 What does it take to nurture and grow a private, non -family commercial real estate development company? Brian Coulter, managing partner at The JBG Companies, a prominent investor, owner, developer and manager of real estate properties in the Washington, D.C, metropolitan area, described how his firm handles these challenges, at NAIOP's Development"3 conference. Back to the City: Deja Vu All Over Again Development Magazine Spring 2014 Through the rearview mirror of 2013, the demographic preferences that are shaping real estate's future are coming into clear view: The emerging millennial generation is creating a strong "back to the city" movement, with the baby boomer generation as its partner. http://www. naiop.org/en/M agazi ne/2014/Sum m er-2014/Busi ness-TrendsIThe-View-From- EC ON .aspx?p=1 10/10 iOS app Android app More Desktop Alerts Loa in Create Account October 15, 2015 AdChoioes C3 HOT ON THE BLOG Featuring fresh takes and real-time analysis from Samantha Power Amal Cloonev HuffPost's signature lineup of contributors Steven Tyler Jose Ramos-Horta Thomas Fisher Become a fan Professor and dean, College of Design at the University of Minnesota Cities in the Third Industrial Revolution Posted: 03/06/2014 12:36 pm EST I Updated: 05/06/2014 5:59 am EDT The Great Recession may well represent the start of what the economist, Jeremy Rifkin, has called "The Third Industrial Revolution." If the first industrial revolution of the 19th century ushered in the mechanization of hand labor, with the steam engine as its iconic technology, and the second industrial revolution of the loth century arose with the mass production and consumption of goods, with the assembly line as its icon, the third industrial revolution has emerged with computer -controlled fabrication technology, like 3D printing, that promises to overturn its predecessors. Now that we can 3D print automobiles, for example, what future does the automobile assembly line have? Unfortunately, too many of our economic development strategies and public policies seem to assume that the economy of the last century will continue. Why vie to attract large companies to a community when they remain the most vulnerable in the new economy, while doing little to foster the creative start-ups that represent the greatest potential for growth? Why continue to build infrastructure as if people will still commute between where they live and work when the new economy will see increasing numbers of people living, working, and making things in the same location? And why zone districts based on single uses when the third industrial revolution will require a much more flexible and interactive mix of activities? Some cities have recognized and begun to respond to these changes. Philadelphia has created new industrial -commercial and industrial - residential mixed-use zoning aimed at attracting new economic activity. Minneapolis is working on an innovation district with technology hubs intended to serve new third -industrial entrepreneurs. And one or two have begun to prepare for a post -automotive age, planning parking garages for example, with flat floors and higher ceilings so that they can easily convert to other purposes when that time comes. These activities will have environmental and social benefits. It will lower our dependence on fossil fuels, and decrease the public health threats that commuting long distances create. But the economic benefits will force these changes. Dependent upon rapid innovation, the new economy will increasingly require that we maximize the interactions among diverse people and enterprises, in more walkable communities and denser, mixed-use, and mixed -income neighborhoods. Similarly with higher -ed, while universities have begun to recognize the value of interdisciplinary, collaborative education and have embraced ideas like empathy and inclusivity, most academic departments still represent disciplinary monocultures, and most curriculums still remain a mass -production way of educating students. Rifkin rightly argues that schools must create a more "distributed and collaborative educational experience," in which students acquire not only disciplinary depth, but also interdisciplinary breadth in how to annly knowledge to the grand challenges we face. But the world will need to go beyond such small steps. The third industrial revolution represents a shift from mass production to mass customization, and the ability to create products tailored to individual needs and services adaptable to particular situations will demand that the public sector do the same. This does not mean that everything is negotiable or that no rules apply. But it does mean that mass-produced policies that get applied to places without regard to their social, environmental, or aesthetic consequences will no longer stand. Cities that remain stuck in the last century, tied to the old economy, will stay there. Thomas Fisher is Dean of the College of Design, at the University of Minnesota. Follow Thomas Fisher on Twitter: www.twitter.com/UofMDesin MORE: Third Industrial Revolution Minnesota Jeremy Rifkin 3D Printing Economy Economic Development Minneapolis Environment Socie Thomas Fisher Philadelphia Higher Education College of Design This Blogger's Books and Other Items from... LEthics for Architects: 50 hf Dilemmas of Professional Practice (Architecture Briefs) by Thomas Fisher Designing To Avoid Disaster: The Nature of Fracture -Critical Design by Thomas Fisher Huffington Post Search Advertise I Loa In I Make HuffPost Your Home Page I RSS I Careers I FAQ User Agreement I Privacy I Comment Policy I About Us I About Our Ads I Contact Us Archive amazonoom. 7z INOIE "M tl BOOKSTORES Copyright ©2015 TheHuffingtonPost. cam, Inc. I "The Huffington Post' is a registered trademark of T heH uffington Post. cam, Inc. All rights reserved. 2015© Part of AOL Tech 10/15/2015 European Commission - Research: Environment - A sustainable future for Europe's industrial parks European Commission > ... > News & Documents > A sustainable future for Europe's industrial parks A sustainable future for Europe's industrial parks `nportant legal notice English Contac Search When successfully run, Europe's industrial and technology parks play a key role in the urban economy, providing vital employment and a place for enterprise and innovation to flourish. Unfortunately, they can also be dreary, unfriendly places that suffer from problems such as poor environmental management, traffic congestion and pollution. These issues have a negative effect on people who work in industrial parks and live nearby. An EU -funded research project called ECOPADEV aims to give such areas a sustainable future by providing town planners with the tools they need to develop more eco -friendly industrial parks.Europe's town and cities have had to grow rapidly over the past century to accommodate more and more people looking for work and a better quality of life. Now about 80 per cent of Europeans live in urban areas — but this has put pressure on local resources, including those industrial spaces where businesses are supposed to grow and prosper. Rather than enhancing quality of life, many of Europe's industrial parks are growing and operating in an unsustainable fashion. They are often run-down spaces, marked by social and environmental problems caused by poor planning decisions. Often local authorities lack the information to steer these parks to a more sustainable future. An inability to innovate and develop can leave industrial areas vulnerable to economic change. Unemployment is likely to become a problem as investment dries up and the best firms leave to look for better places to operate from. The resulting stagnation is likely to have a detrimental impact on nearby residential areas and the entire local urban region. Top (htti)://ec.euroi)a.eu/comm/research/environment/newsanddoc/#top) () The `Eco -Park' concept Bilbao Technology Park played a key role in the ECOPADEV project The ECOPADEV project aimed to change this situation by encouraging urban planners to transform these areas into 'eco' industrial parks. "The 'eco -park' concept seeks to ensure that industrial development in urban areas brings a range of economic, social and environmental benefits to the local community," explains project coordinator Marian Ibarrondo. Eco -parks are run in ways that enhance the relationships between different actors — including municipalities, businesses and the local community — and that optimise the sustainable use of resources. Initiatives to cut down on waste, pollution and traffic congestion are likely to be top of the agenda for those involved in managing more sustainable industrial areas. There are benefits for businesses as well — closer relations engendered by the eco -park ethos could allow for benchmarking activities and improve commercial contacts within a park. A well-run park is also likely to provide good quality recycling facilities, offer good links to local schools via provision of internships and summer jobs, and be sensitive to community needs, for example by offering open -days and training to local people. The project began work by defining and collecting data that could act as indicators of sustainability. This included drafting a set of indicators for eco -efficiency covering issues such as waste generation and reduction, renewable and non-renewable energy use, CO2 emissions and vehicle use. The ECOPADEV team fed this information into a web -based tool that it designed and built for use by Europe's urban planners. "Our software tool can be used by any town hall or municipality to check if an industrial area is being run sustainably — the tool then provides information that can be used to improve those levels of sustainability," explains Ms Ibarrondo. The tool was tested successfully in three technology parks in Bilbao, Spain, Tampere, Finland and Almada in Portugal. Information about the particular industrial park under scrutiny is gathered via use of a questionnaire. Users submit answers about a range of subjects such as: environment; health and safety; production processes; energy and sustainable buildings; transport; quality of life issues and community connections; and human resources. Top (htti)://ec.euroi)a.eu/comm/research/environment/newsanddoc/#top) () Partnerships for sustainability Turning industrial spaces into more eco -friendly areas is a complex job because so many issues have to be addressed. The 14 -strong ECOPADEV consortium included experts in environmental issues; health & safety; human resources and marketing; energy efficiency in the built environment; sustainable building construction; traffic management; and information technology. "It is important to stress that the eco - park concept is not simply about environment — to deliver change we focus on a range of issues and certainly teamwork is essential," says Ms Ibarrondo. "If parks are to be successful everyone has to be working towards the same goals and objectives." Of course it is sometimes difficult to reconcile the needs of businesses, local communities and local authorities. The project was acutely aware of this and responded by defining procedures to resolve "conflicts of interest" between different actors which might be involved in the sustainable development of a city. ECOPADEV has defined procedures which can be used to solve such conflicts that can be accessed via the project's extra -net communications system. The system is designed to promote the exchange of information and experience between groups. It also offers scope to develop international contacts useful to eco -park development and sustainability, and can be used by local authorities to disseminate their policies. Top (htti)://ec.euroi)a.eu/comm/research/environment/newsanddoc/#top) () European impact The project's ethos and objectives complement the European Union's commitment to the UN's Local Agenda 21 initiative, which was developed specifically to stimulate local policies for sustainable development through the building of partnerships between local authorities and the communities they serve. ECOPADEV is also in step with the EU's sustainable development strategy, which was signed in 2001. The project's desire to improve the https://ec.europa.eulresearchlenvi ronm entlpri nt.cfm?fi I e=lcom m/research/envi ronm ent/newsanddoclarticle_3892_en. htm 1/2 10/15/2015 European Commission - Research: Environment - A sustainable future for Europe's industrial parks urban environment, reduce transport congestion, promote energy efficiency and cut waste and emissions reflects many of the strategy's key priorities. The project finished in 2005 but its partners continue to disseminate the results and promote use of the web -based tool. ECOPADEV was presented globally, last September, at a conference in China that was organised to discuss eco -parks and sustainable development. Links -D Proiect website (http://www.ecoL)adev.net/) link 1 -D The EU's sustainable development strateav (http://ec.euror)a.eu/environment/eussd/) link2 -o Local Aaenda 21 (http://www.un.ora/esa/sustdev/documents/aaenda2l/index.htm) link3 o Presentation of Eco -park concept (http://cordis.euroL)a.eu/sustdev/environment/ev030504 oralpresentations.htm) link4 Contact -D Marian Ibarrondo ECOPADEV coordinator Director of Innovation Parque Tecnologico de Bizkaia 48170 Zamudio Spain Tel: +34 944 039 500 Fax: +34 944 039 510 E-mail: mibarrondo@pargue-tecnologico.net(ma ilto:mibarrondo@parque-tecnolog ico.net) www.r)araue-tecnoloaico.net(httr)://www.r)a raue-tecnoloaico. net/) links Page URL: http://ec.europa.eu/comm/research/environment/newsanddoc/article_3892_en.htm Links: 1. http://www.ecopadev.net/ 2. http://ec.europa.eu/environment/eussd/ 3. http://www.un.org/esa/sustdev/documents/agenda2l/index.htm 4. http://cordis.europa.eu/sustdev/environment/ev030504_oralpresentations.htm 5. http://www.parque-tecnologico.net/ https://ec.europa.eulresearchlenvi ronm entlpri nt.cfm?fi I e=lcom m/research/envi ronm entlnewsanddoclarticle_3892_en. htm 2/2 Top 10 Reused Industrial Landscapes Advancements in ecology and environmental studies have been particularly prevalent over the past few years. We recycle waste on a daily basis in the hopes of preventing past mistakes, because decades ago we did not understand the full extent of pollution. In the spirit of reusing waste, we have adapted contaminated sites to become useful once again through many means of cleansing and renovating the soil and surrounding structures. Here is a list containing some industrial landscapes that, helped along by Mother Nature and man, have become core to the surrounding communities, remembering the past while embracing the future. 10. Concrete Plant Park — Bronx, New York Concrete Plant Park; credit: Malcolm Pinckney -NYC Parks The Concrete Plant Park was once a concrete batch mix plant located on the southern side of the Bronx River, along the western shore. The park is surrounded by large bridges and is cut off from the mainland by an Amtrak line. Community is at the heart of this renovation, as it is packed with chess tables, a beautiful waterfront, a boat launch, and a busy bike trail — all you need for a lazy Sunday. 9. Rincon Park — San Francisco #I "Creative Commons Rincon Park and Cupid's Span in the Embarcadero, San Francisco, California, USA" by Dewet is licensed under CC BY 3.0 Rincon Park, located just underneath the Bay Bridge, is truly a memorable park due to its large sculptural bow and arrow in the center created by Claes Oldenburg and Coosje van Bruggen. A past of industrial and commercial use left the waterfront with low levels of contamination. After renovation, this park gives visitors a base to view some of the iconic aspects of San Francisco, such as San Francisco Bay, The Bay Bridge, and views across to Oakland. With open green space, walled seating, and the surrounding bustling area, this park shows it does not have to be large to make an impact! 8. Glass Beach — Fort Bragg, California e Creative Commons A beach in the industrial section of Hanapepe, Kauai called "Glass Beach" due to tons of smooth glass pebbles on the beach" by Travis.Thurston is licensed under CC BY 3.0 Glass Beach is situated in Fort Bragg. After years of being the site of dumped glass, this beach has morphed into a very interesting result, as Mother Nature shows us her power. The beach is littered with smooth glass pebbles, creating a beautiful and colorful park. 7. Thames Barrier Park — London, England IF "Creative Commons Thames Barrier Park" by Matt Kieffer is licensed under CC BY 2.0 jo Thames Barrier Park was an industrial site for chemical and dye works, leaving the soil and groundwater contaminated. Today, it is a very different site, with weaving hedges representing the site's dockland heritage. The park has strong contrasting diagonal lines, dividing up a rectangular park running toward the river. The park not only caters to tourists, but also welcomes the community surrounding the park, as it boasts a playground, fountain plaza, and a basketball court. There is a strong historical theme throughout this park, strengthened by the choice of vegetation and its location close to the docks. 6. Ayalon Park — Tel Aviv, Israel "Creative Commons Ayalon Park" by Israel Peled is licensed under CC BY 3.0 Ayalon Park, named after the Ayalon Valley that lies at its feet, was the site of Israel's largest landfill. This project turns 16 million cubic meters of waste into a 2,000 -acre park, bursting with eco -friendly amenities such as a biological waste treatment plant, a garden waste recycling system, a battery collection facility, and many more ecological facilities. This project is set to continue until 2020. 5. Landschaftspark — Duisburg Nord, Germany Rather than reject this park's polluted past, Latz and Patner embrace and accept its industrial history by using the remaining structures and cleansing the remaining contaminated soil through phytoremediation. The existing and past uses were carefully considered as they chose different uses for the remaining structures. Old concrete walls were morphed into a rock climber's ambition and an old gas tank transformed into scuba diving pools, with the former steel mill creating the main square. 4. Trail of the Coeur d'Alenes — Silver Valley, Idaho Trail of the Coeur d'Alenes is a rail trail running through Silver Valley in Idaho. This trail was a positive outcome from the remaining residue left behind from the area's silver mines. After the removal of the rails, the 73 -mile track was transformed into a bike and hike trail with stunning sights along the paths. This trail won the 2006 EPA Region 10 Phoenix Award for achievement of excellence in brownfield redevelopment. "Creative Commons Trail of the Coeur d' Alenes" by Robert Ashworth is licensed under CC BY 2.0 3. Alumnae Valley — Wellesley College, Washington This 13.5 -acre campus site was transformed into a beautiful and lavish green valley consisting of various sections all coming together to create a unified landscape. The site was an environmental concern as lead paint, oil, and coal -tar was found on site. After decontamination, the college started a seven-year construction, altering the 175 -space car park into a sloping, lush valley embracing the college within. See more here 2. Westergasfabriek Culture Park — Amsterdam, Holland by Gustafson Porter Westergasfabriek Culture Park; ; credit: photo courtesy of Gustafson Porter In the late 19th century, two coal gas factories were built in Amsterdam along the waterways. By the time both factories ceased production in 1967, the site was heavily polluted. During the clean-up phase, they found tar, minerals oils, asbestos, and cyanide. Now stands a stunning 14 -hectare city park designed by Gustafson Porter. This park stirs all the senses using the variety of spaces within, boasting marsh ponds, wildflower meadows, large open green spaces, and waterside decks. This park runs in conjunction with Bretten Zone, a 10 -kilometer stretch of waterways that encourage amphibians, reptiles, and fish to move freely within the waterways, another outstanding accomplishment that only adds to this park. 1. Freshkills Park — Staten Island, New York New York has made a leap forward, dealing with the iconic landfill on Staten Island and turning it into a new park for New York City. Freshkills Park is a 2,200 -acre park, symbolizing renewal and restoration within New York. The area is divided into various terrains; 45 percent of the site is wetlands, open waterways, and unfilled lowland areas, creating a difficult and challenging space to consider. This space redefines New York parklands by introducing the community to the surrounding ecology. This short list of industrial landscapes portrays the reuse of these hazardous sites and how they were turned into town attractions. They creatively engage in their industrial past while promoting a change for the future. These are proof of our leap forward into environmental studies in the hope of protecting our already stunning landscapes. Article written by Lisa Tierney.