HomeMy WebLinkAbout2002 [06] Jun 03Page 1 of 8
Pursuant to due call and notice thereof, the Planning Commission for the City of St. Joseph met in regular
session on Monday, June 3, 2002 at 7:05 p.m. in the St. Joseph City Hall.
Members Present: Chair Gary Utsch. Commissioners Mike Deutz, S. Kathleen Kalinowski, Marge
Lesnick, Jim Graeve, Kurt Schneider. Council Liaison AI Rassier. Administrator /Clerk Judy Weyrens.
Others Present: Jerry Hettwer, Mike Miller, Joe Miller, Scott Miller, Gary Schroeder, Joanne Foust,
Cynthia Smith-Strack, and Ted Schmid
Approve Agenda: Rassier made a motion to approve the agenda as presented; seconded by
Lesnick and passed unanimously .
Approve Minutes: Kalinowski made a motion to approve the minutes of March 4, 2002; seconded
by Lesnick.
Discussion: After review of the minutes it was determined the minutes of March 4, 2002 were
incomplete.
Utsch tabled approval of the March 4, 2002 minutes to the July 1, 2002 meeting.
Kalinowski made a motion to approve the minutes of March 26, 2002 as presented; seconded by
Lesnick.
Discussion: Graeve questioned the wording of schedule of allowances in relation to the R-3
Zoning District. Weyrens reported City Attorney John Scherer is reviewing the proposed
modifications to the R-3 Zoning District, including the schedule of allowances. When Scherer
submits his opinion it will be presented to the Planning Commission and City Council. Graeve
would like for future reference, the need for special allowances and what they are designed to
accomplish.
The motion passed unanimously.
Kalinowski made a motion to approve the minutes of April 9, 2002 as presented; seconded by
Lesnick.
Ayes: Utsch, Kalinowski, Deutr, Rassier, Lesnick, Schneider.
Nays: None Abstain: Graeve Motion Carried: 6:0:1
Kalinowski made a motion to approve the minutes of May 6, 2002 as presented; seconded by
Rassier.
Discussion: Graeve requested the minutes reflect the alternatives given to Bohlen as his request
was denied.
The motion passed unanimously.
Diamond Ener~c y Variance and Special Use Request Chair Ustch called the public hearing to order and
stated the purpose of the hearing is to consider a variance to allow remodeling to the building located at
601 West County Road 75, St. Joseph MN 56374 without meeting the exterior building material
requirements as stated in St. Joseph Code of Ordinances Section 53.22 B-2 Highway 75 Business
District. Subdivision 7 (c) Building Exteriors.
Section 53.22, Subdivision 7 (c) states that acceptable exterior building materials shall include brick,
stone, tip-up concrete panel, decorative concrete block or glass. Wood siding, plastic, and other
combustible material not listed as acceptable shall not be used for building exteriors. Architecturally
approved steel is acceptable provided that at least 50% of the building (excluding windows and doors)
consist of brick, stone, tip-up concrete panel and / or decorative concrete block. Any building undergoing
renovation, repair, or an addition, so as to require the issuance of a building permit, shall be brought into
conformance with this subsection at the time of repairs, renovation, or addition are completed.
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Realtor Jerry Hettwer spoke on behalf of the property owner. Hettwer stated Diamond Engery is currently
located at 819 - 19th Avenue NE and is in the process of relocating the business to 601 West County
Road 75. Diamond Energy is a sheet rock company that is looking for a larger facility to store supplies
and provide office space.
The property is currently zoned B-2 Highway 75. Hettwer clarified that when the existing building at 601
West County Road 75 was constructed the property was zoned Industrial. When the building constructed
in 1995 it met all the requirements of the zoning district including securing a special use permit. The
property was zoned General Business in 1997 and again rezoned in 1999 as Highway Business. Hettwer
stated that the proposed use for Diamond Energy is similar in nature to the existing use. It is his
understanding that a special use permit is needed as minor remodeling, including the construction of a
bathroom and office space will require the issuance of a building permit. Therefore, the building must
conform to the Ordinance requirements.
Hettwer presented the following site plan details:
Site Size 2.47 Acres
Building Steel Frame
Construction
Building Size 80' x 120'; 21,600 square feet
Comprised of an office space of 2,400 square feet and 19,200
square feet of warehouse area.
Loading Facilities 2 docks
Parking Area: 11,200 square feet - 22 parking spaces
Signage Details are not available at this time but all signage will conform to
the regulations as stated in the St. Joseph Code of Ordinances
There being no one present wishing to present testimony on the proposed variance and special use
permit, Chair Utsch closed the hearing at 7:23 PM.
Graeve stated that he is unfamiliar with Diamond Energy and requested the property owners to give a
brief summary of the company. Owner representative Mike Miller presented the following facts about
Diamond Energies:
^ The business is currently located at 819 - 19'h Avenue NE and has been in existence since 1987
^ Current Pay Scale $ 12.50 t0 26.50 per hour
^ The company owns 14 vehicles which will be parked on the site each night
^ Diamond Energies is comprised of 26 employees
Graeve questioned Miller if there are any potential safety hazards with their business. Miller reported that
Diamond Energy only warehouses insulation and it is mainly fiberglass. In addition to fiberglass
insulation they also carry Styrofoam and fiberglass pipe covering, fiberglass blanket and board for duct
insulation. None of these products pose a safety hazard.
Rassier made a motion to recommend the City Council adopt the following findings,
recommending approval of the Special Use Permit. The motion was seconded by Deutz.
Page 3 of 8
Resolution of finding
The request of Diamond Energy for a Special Use Permit came before the Planning Commission at a
public hearing held on June 3, 2002. The purpose of the hearing was to consider issuance of a Special
Use Permit to allow industrial warehousing in a Highway 75 Business Zoning District.
St. Joseph Code of 52.22 subdivision 4 (c) allows for industrial and office warehousing.
That part of Lot 9, AUDITOR'S SUBDIVISION NUMBER 4, a duly recorded plat in Stearns County,
Minnesota, which lies east of the west 186.50 feet thereof, north of the northerly right of way line of County
Road Number 75 (formerly U.S. Trunk Highway Number 52) and west of a line drawn due south from a point
which is 800.00 feet due west of a point on the west line of SCHNEIDER'S ADDITION, a duly recorded plat
in said county and state, distant 800.00 feet northerly of the intersection of said west line with said northerly
right of way line of County Road Number 75. Together with an easement for ingress and egress over that
part of the south half of the northeast quarter of Section 9, Township 124, Range 29, Stearns County,
Minnesota, which lies within 33 feet on each side of the following described line:
Commencing at a point on the west line of SCHNEIDER'S ADDITION, a duly recorded plat in Stearns
County, Minnesota, distant 800.00 feet northerly of the intersection of said west line with the northerly right
of way line of County Road Number 75 (formerly U.S. Trunk highway Number 52); thence due west for
800.00 feet; thence due south to a line drawn parallel with and 33.00 feet northerly of the north line of Lot 9,
AUDITOR'S SUBDIVISION NUMBER 4, a duly recorded plat in said county and state, this being the point of
beginning of the line to be described; thence westerly along said parallel line to its intersection with the west
line of the east half of said Section 9; thence deflect to the left along a tangential curve, having a radius of
80.00 feet and a central angle of 53' 00" for 74.00 feet; thence southwesterly on tangent to said curve in the
northerly right of way line of said County Road Number 75 and there terminating.
The request has been submitted by Diamond Properties Partnership, 819 19th Avenue NE, St. Joseph MN
56374.
Notice of this matter was duly served and published.
In consideration of the information presented to the Planning Commission and its application to the
Comprehensive Plan and Ordinances of the City of St. Joseph, the Planning Commission makes the
following findings:
The proposed use is consistent with the standards for granting a Special Use Permit, as
stated in St. Joseph Code of Ordinances No. 52.9
Therefore, based on the above findings, the Planning Commission makes the following recommendation:
Approval of the Special Use Permit to allow Industrial warehousing a Highway Business Zoning
District.
Variance, regarding exterior reouirements: Hettwer stated the building contains a small amount of brick
that is placed on the south and west sides of the building. The Commission discussed the parking area
and questioned if the additional parking will be paved. Hettwer stated that there is a significant area that
is already blacktopped and the property owner does not intend on surfacing an additional area.
Graeve questioned if the property owners would be agreeable to planting trees on the west side of the
building to provide for some aesthetics. Hettwer stated the property around the building is already
landscaped with shrubbery and decorative rocks. In addition, the property contains trees on the east side
of the building. Graeve stated that placing trees on the west side of the building would help reduce the
visibility of the large building and parking area. In addition it may provide some relief for dust control.
Hettwer stated that Diamond Energy is considering leasing a portion of the facility, as they do not need
the entire building at this time. The Commission questioned if a variance is needed as the modifications
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to the building are all interior and minor in nature. Weyrens clarified that the Ordinance requires all
building permits in the Highway Business Zone be approved by the Planning Commission. Deutz
questioned if by granting a Special Use Permit for industrial warehousing any company could lease the
building without first securing a Special Use Permit. Weyrens stated that special use permits are non-
transferable. Therefore, she would believe that each use would require a Special Use Permit. Weyrens
agreed to research clarification on this matter and report back to the Planning Commission.
Rassier made a motion to recommend the City Council adopt the following findings
recommending approval of the variance on the exterior requirements. The motion was seconded
by Kalinowski and passed unanimously.
RESOLUTION OF FINDING
The request of Diamond Energy for a Variance on the exterior requirements came before the Planning
Commission at a public hearing held on June 3, 2002. The purpose of the hearing was to consider
issuance of a Variance to relieve the 50% exterior requirements as stated in St. Joseph Code of
Ordinance 53.22 .
St. Joseph Ordinance 53.22, Subdivision 7 (c) states that acceptable exterior building materials shall
include brick, stone, tip-up concrete panel, decorative concrete block or glass. Wood siding, plastic, and
other combustible material not listed as acceptable shall not be used for building exteriors. Architecturally
approved steel is acceptable provided that at least 50% of the building (excluding windows and doors)
consist of brick, stone, tip-up concrete panel and / or decorative concrete block. Any building undergoing
renovation, repair, or an addition, so as to require the issuance of a building permit, shall be brought into
conformance with this subsection at the time of repairs, renovation, or addition are completed
That part of Lot 9, AUDITOR'S SUBDIVISION NUMBER 4, a duly recorded plat in Stearns County,
Minnesota, which lies east of the west 186.50 feet thereof, north of the northerly right of way line of County
Road Number 75 (formerly U.S. Trunk Highway Number 52) and west of a line drawn due south from a point
which is 800.00 feet due west of a point on the west line of SCHNEIDER'S ADDITION, a duly recorded plat
in said county and state, distant 800.00 feet northerly of the intersection of said west line with said northerly
right of way line of County Road Number 75. Together with an easement for ingress and egress over that
part of the south half of the northeast quarter of Section 9, Township 124, Range 29, Stearns County,
Minnesota, which lies within 33 feet on each side of the following described line:
Commencing at a point on the west line of SCHNEIDER'S ADDITION, a duly recorded plat in Stearns
County, Minnesota, distant 800.00 feet northerly of the intersection of said west line with the northerly right
of way line of County Road Number 75 (formerly U.S. Trunk highway Number 52); thence due west for
800.00 feet; thence due south to a line drawn parallel with and 33.00 feet northerly of the north line of Lot 9,
AUDITOR'S SUBDIVISION NUMBER 4, a duly recorded plat in said county and state, this being the point of
beginning of the line to be described; thence westerly along said parallel line to its intersection with the west
line of the east half of said Section 9; thence deflect to the left along a tangential curve, having a radius of
80.00 feet and a central angle of 53' 00" for 74.00 feet; thence southwesterly on tangent to said curve in the
northerly right of way line of said County Road Number 75 and there terminating.
The request has been submitted by Diamond Properties Partnership, 819 19th Avenue NE, St. Joseph MN
56374.
Notice of this matter was duly served and published.
Inconsideration of the information presented to the Planning Commission and its application to the
Comprehensive Plan and Ordinances of the City of St. Joseph, the Planning Commission makes the
following findings:
St. Joseph Code of Ordinances 52.8 subd (a) states: "That there are exceptional or extraordinary
circumstances or conditions applying to the property in question as to the intended use of the
property that do not apply generally to other properties in the same zoning district. The
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exceptional or extraordinary circumstances must not be the result of actions taken by the
petitioner.
FINDING: This building was constructed under a different zoning classification and
requiring the property owner at this time to modify the exterior would create a
financial hardship. Additionally, the remodeling to the building is minimal and all
interior construction.
St. Joseph Code of Ordinances 52.8 subd. (b): "states that the literal interpretation of the
provisions of this Ordinance would deprive the petitioner of rights commonly enjoyed by other
properties in the same district under the terms of this Ordinance".
FINDING: The proposed use is consistent with the standard.
St. Joseph Code of Ordinances 52.8 subd.(c): "states that granting the variance requested will
not confer on the applicant any special privilege that is denied by this Ordinance to other lands in
the same district".
FINDING: The proposed use is consistent with the standard.
St. Joseph Code of Ordinances 52.8 subd. (d) "states that the proposed variance will not impair
an adequate supply of light and air to adjacent property, or diminish or impair established
property values within the surrounding area, or in any other respect impair the public health,
safety or welfare of the residents of the City".
FINDING: The proposed use is consistent with the standard,
St. Joseph Code of Ordinances 52.8 subd. (e) "states that the condition or situation of a specific
piece of property, or the intended use of said property, for which the variance was sought, is not
of so general or recurrent a nature as to make reasonably practicable the formulation of a general
regulation for such conditions or a situation".
FINDING: The proposed use is consistent with the standard.
Therefore, based on the above findings the Planning Commission makes the following recommendation:
Approval of the Variance request relieving the exterior requirements. Approval is recommended
with the following contingency:
The property owner will plant trees on the west side of the building.
Final Plat Northland Phase Six: Weyrens reported the Final Plat for Northland Six is for the first phase
only which includes approximately 54 homes. Since the preliminary plat included more than 100 lots, an
Environment Assessment Worksheet (EAW) must be completed. The EAW requires a thirty (30) day
comment period for interested persons to question environment issues. The thirty day period ends on
June 27, 2002. The City Council cannot take action on the plat until the comment period is ended. The
EAW process also requires that the City adopt a resolution of no impact at the completion of the comment
period. .
Deutz questioned why the Planning Commission is not approving the entire preliminary plat that was
presented to the Commission. The original plat contained 107 homes and the final plat for Northland Six
only contains 54 homes. Weyrens responded that the City allows developers to phase large plats. Once
the preliminary plat is approved it cannot be changed. All final plats must be consistent with the approved
preliminary plat which is kept on file in the City Offices. Ted Schmid stated that plats are developed in
phases for economic reasons including payment of property taxes.
Schmid stated that pockets of wetlands have been determined in the southeast corner of the plat.
Therefore, the final plat for Norhtland Six excludes five lots which are in a wetland area. Schmid stated
that he will delineate the area in question and include those lots in a future final plat. Schmid stated the
final plat before the Commission at this time includes all the revisions as requested by the Planning
Commission and City Council.
Page 6 of 8
Utsch questioned if access to County Road 2 for construction traffic is included in the Final Plat presented
at this time. Schmid reported that he does own the property and a gravel access will be provided to
County Road 2 at all times of construction. Weyrens reported that she has received a fetter from
Rothfork agreeing to the access to County Road 2. This agreement will become part of the Developers
Agreement.
When questioned as to the time line for construction, Schmid state that he plans to begin construction as
soon as possible this year. Phase two is scheduled for the Spring of 2003 and Phase three the spring of
2004.
Kalinowski made a motion to recommend the Council approve the final plat of Northland Phase
Six as presented with the following contingencies;
1. Approval of the City Engineer
2. Execution of the Developers Agreement including a provision for access to County Road
2.
The motion was seconded by Lesnick and passed unanimously.
Vic West -TIF District. Municipal Development Group: Cynthia Smith-Strack and Joanne Foust of
Municipal Development Group, Inc. approached the Planning Commission regarding the Tax Increment
Financing Plan (TIF) of Vic West Steel.
Smith-Strack stated that the City Council has authorized the preparation of a TIF Plan and Development
Agreement in conjunction with the Vic West Project. A required element of the preparation process is a
finding of fact certifying the proposed TIF District conforms to the City's Comprehensive Plan.
The project consists of the construction of a 67,000 square foot manufacturing facility, (7,000 sq ft of
office space and 60,000 sq. ft. production) on 10 acres of land located in the Buettner Business Park.
The single story facility will be constructed of steel and block materials with ceiling heights from 12'
(office) to 26' (production). Construction cost is estimated at 3.2 million with an additional $ 500,000 for
overhead cranes and $ 380,000 for land acquisition making the total project cost $ 3.8 million.
The building will be leased from the LLC by Vic West. Vic West plans to move into the facility in
December 2002. The project is anticipated to create 7 new jobs with wages of $ 12.00 through $ 14.00
per hour. TIF Assistance is requested in order to help the project move forward. Without the help of TIF,
Vic West will not move forward with the project as it would be cost prohibitive.
Utsch questioned the use of TIF and if it is necessary for the City to provide subsidy in the full amount
requested by Vic West. Smith-Strack stated that the TIF available through the City is the pay-as-you-go
method which provides no risk to the City. The property taxes are only recaptured by Vic West after they
pay their taxes and ten percent is retained by the City for administrative expenses. Utsch stated that the
City extended services to the Industrial Park to increase the tax base. If the taxes are captured by the
businesses for seven to nine years then the City is not receiving additional taxes. The businesses
utilizing TIF still receive City services and the City is not receiving any additional benefit. Smith-Strack
stated that the City will always have the building. Even if the company would leave after a period of time,
the building could be sold or leased to another party. Without TIF St. Joseph cannot compete with the
surrounding communities. Again Smith-Stract stated that the TIF policy adopted by the City of St. Joseph
does not include any risk to the City.
Smith-Strack stated the Planning Commission needs to make a resolution of findings as to whether or not
the proposed TIF plan conforms to the standards of the St. Joseph Comprehensive Plan. Smith-Strack
presented the following statements with regard to the proposed TIF Plan and the Comprehensive Plan:
1. "Encourage and market commercial and industrial development compatible with the City and
that will support and diversify the local economy."
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Proposed project: The proposed project will generate an annual gross tax increment (increase in taxes)
of $ 73,423, thereby supporting and diversifying the local economy.
2. "Promote commercial and industrial development that is cost effective and sustainable."
Proposed project: Vic West Steel has been a member of the St. Joseph business community for
several years. The proposed development will allow the business to expand and function more
efficiently.
"Explore funding possibilities and financial incentive plans that will encourage commercial
and industrial development."
Proposed Project: The financial incentive plan includes the issuance of an Industrial Development
Bond, tax increment proceeds and participation in the Minnesota Investment Fund program. The
investment fund portion is a grant to the City which is, in tum, loaned at below market rates to the
Developer. The City is able to retain a percentage of the grant and all the interest for dedication to a
revolving loan fund. The local revolving loan fund will then be available as a financial incentive to other
businesses.
4. "The City will attractively encourage commercial and industrial development that helps
sustain the economic vitality of the City and enhances the standard of living."
Proposed Project: The project will allow a member of the business community to expand and remain in
the City. The project will result in an increase in the City's tax base and assist in the diversification of
the tax base.
Industrial development within the City will adhere to the environmental quality standards."
Proposed Project: The proposed site for the development is within the Buettner Business Pa-tc wherein
existing covenants require compliance with EPA and MPCA standards.
6. "The local EDA will explore funding possibilities and financial incentive plans that will
encourage commercial and industrial growth."
Proposed Project: The EDA has recommended the use of TIF to facilitate this project
7. The land use map included with the 1997 Comprehensive Plan indicates the proposed area
is zoned industrial.
Proposed Project. The project is industrial in nature (i. e. construction of a manufacturing facility).
Deutz made a motion to approve Resolution 2002-01; seconded by Kalinowski and passed
unanimously.
Resolution 2002-01
Finding Tax Increment Financing District 1-4 Conforms with the
General Plans for Development and Redevelopment
of the City of St. Joseph
WHEREAS, the City Council for the City of St. Joseph, Minnesota (the "City") has proposed to adopt a
Tax Increment Financing Plan for the Tax Increment Financing District No. 1-4 (the "Plan") and has
submitted the Plan to the City Planning Commission (the "Commission") pursuant to Minnesota Statutes,
Section 469.175, Subdivision 3, and
WHEREAS, the Commission has reviewed the Plan to determine its conformity with the general plans for
the development and redevelopment of the City as described in the comprehensive Plan for the City of St.
Joseph.
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NOW, THEREFORE, BE IT RESOLVED by the St. Joseph Planning Commission that the development
Plan of Vic West Steel conforms with the general plans for the development and redevelopment of the
City of St. Joseph as a whole.
Comprehensive Plan -Review of draft chapters: Cynthia Smith-Strack and Joanne Foust of Municipal
Development Group, Inc. approached the Planning Commission regarding the updating of the St. Joseph
Comprehensive Plan. Smith-Strack and Foust presented the Planning Commission with the draft of the
first three chapters of the revised Comprehensive Plan. The following information was presented:
Chapter One -Introduction
^ Purpose
^ Scope of Plan
^ Methodology
^ Community Strengths and Opportunities
Chapter Two -Community Characteristics and Setting
^ History of St. Joseph
^ Physical Profile Summary (Topography, Surface/Ground Waters, Soils, Woodlands and
Vegetation)
Chapter Three -Demographic Trends and Assumptions
^ Social Profile Summary
^ Population Growth -Historical and Future Projections
^ Household Growth
^ City of St. Joseph Population and Household Projection Assumptions
^ St. Joseph Population Characteristics
^ Employment Characteristics
Other Matters: The City Council and Planning Commission will be meeting in joint session to discuss
affordable housing. Deutz stated that he is part of the St. Joseph Beautification Committee and at that
same meeting he would like the opportunity to update the City Council and Planning Commission on the
beautification plans for College Avenue North and South.
Adiourn: Lesnick made a motion to adjourn at 9:15 PM; seconded by Rassier and passed
unanimously.
--...
Ju yrens
A mini trator Clerk