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ARDEN HILLS CITY COUNCIL – SEPTEMBER 28, 2020 10 Community Development Manager/City Planner Mrosla stated the Applicant was making the request in case they had a tenant with such needs. Councilmember McClung indicated he had some concerns with this request. He reported he had a much higher vision for this site. He feared that the City was not a big winner with this development given it was a highly visible piece of property in Arden Hills. Councilmember Holmes requested the Applicant speak to the Council regarding the concept plan. She clarified that the remaining 15% of the building just had to be non-warehousing/non- wholesaling. Dan Salzer, the Applicant on behalf of the proposal at 4200 Round Lake Road, explained the proposed building was based on market knowledge and market experience with this product type. He believed this building fit with the goals of the Comprehensive Plan for Light Industrial. He discussed how office/warehouse buildings functioned and noted the office footprint was diminishing. He stated his goal was to provide a building that was trending with market demands. He commented the average office space in the building to the north had only 10.73% office space. He indicated this building was being built without a known tenant and his goal was to use high finishes. His goal was to convert the pond to underground storage in order to create more parking. He commented at the end of the day he just needed the flexibility within the space. Councilmember Holden asked if technically, only 7% of the building would be office/R&D space because the building would be two stories. Community Development Manager/City Planner Mrosla stated this was correct. Councilmember Holden explained the City used input from local businesses when drafting the Comprehensive Plan language in order to attract strong businesses. She expressed concern with allowing only 7% of the building to be office/R&D space. Mr. Salzer reported if a tenant requires the installation of a second floor this would require a mezzanine and the gross square footage of the building would be increased. He commented on how light industrial spaces are used today and noted a mix of uses was most desirable. He stated it was public knowledge that he just purchased the Deluxe campus in Shoreview. He discussed how Deluxe was changing the way they operate. He explained he was not asking for a maximum of 85% of warehouse but rather that this would be the minimum. He stated this would provide him with the flexibility to meet the needs of his future tenants. He indicated his goal was to find job- oriented businesses for this building. Councilmember Holden asked how many square feet would be included within 15% of the tenant space. Community Development Manager/City Planner Mrosla commented this would be about 37,000 square feet. Councilmember Holden questioned if the 15% was “finished” could wholesaling be completed in this space.