HomeMy WebLinkAbout2A, Concept Review 1300 Grey Fox Road - Salvation Army Proposal ,-SRZEN HILLS
Request for Council Action 2A
Prepared By: Meagan Beekman, City Planner Work Session Date: February 13,2012
Concept Review—1300 Grey Fox Road-Salvation Army Proposal
Budgeted Amount: Actual Amount: Funding Source:
NA NA NA
Discussion Topic:
The Council is being asked to review the submitted concept proposal by the Salvation Army and provide
feedback on the proposed use at 1300 Grey Fox Road. Representatives of the Salvation Army will be
available the evening of the work session to provide additional details about their program and answer
questions from the Council.
Supporting Documents:
1. Memorandum from Meagan Beekman, City Planner, dated February 13,2012.
2. Application and Supporting Materials.
,,-AVEN HILLS
MEMORANDUM
DATE: February 13, 2012
TO: Honorable Mayor and City Councilmembers
Patrick Klaers, City Administrator
FROM: Meagan Beekman,City Planner
SUBJECT: The Salvation Army Adult Rehabilitation Center (ARC)
Applicant: The Salvation Army, 10 West Algonquin Road
Property Location: 1300 Grey Fox Road
Request: Concept Review
Requested Action
The applicant has requested a concept review to redevelop the property at 1300 Grey Fox Road.
They are proposing to reuse the existing warehouse building, and to construct a new building that
would be the location of the site's housing and administrative functions. They are requesting
feedback from the Council on their concept in order to determine their interest in moving
forward with a formal application.
Concept PUD Review Process
The concept review process is an opportunity for the City Council to provide comments,
questions, concerns, and suggestions regarding the proposed development options. A concept
review is considered advisory and is nonbinding to the City and applicant (Section 1320.14 Subd
4 of the Zoning Code). No formal action can be taken at a work session. A formal application
will be subject to the full review process, including a public hearing with Planning Commission
and City Council review.
City of Arden Hills
City Council Work Session for February 13, 2012
P.•IPlanningl Planning Cases12012U2-004-1300 Grey Fox Road-Salvation Army Concept Review103-07-12-CC Work Session Report-
Concept Review.docx
Page 1 of 4
Background
The property at 1300 Grey Fox Road is zoned I-Flex. It is currently vacant, but was previously
owned and operated by Eastside Beverage as a distribution center and warehouse. The property
is approximately 6.6 acres in size and has an 84,912 square foot building on it. There is also a
rail spur on the property.
The Salvation Army is requesting a concept review of a proposal to allow the reuse of the
existing building at 1300 Grey Fox Road as a mixed-use, live-work facility. The applicant is
proposing to retain and renovate the existing 84,912 square foot structure, utilizing it as a
warehouse and processing facility for goods going to and from Salvation Army retail stores. The
Salvation Army would take advantage of the existing rail spur to transport goods throughout the
region.
In addition to the warehouse/processing use, the applicant is proposing a residential component
that would allow 130 selectively-chosen volunteer beneficiaries to live and work at the site as
part of the Adult Rehabilitation Center (ARC). The ARC program beneficiaries are men who
reside on site and participate in a 6-8 month residential and work rehabilitation program. The
beneficiaries work in the processing center, and participate in educational, spiritual, and
counseling programs on site. The beneficiaries are not permitted to have vehicles. The
Salvation Army does not accept beneficiaries into the program that have criminal records that
include criminal sexual convictions, arson, or mental illnesses which require treatment in a
licensed medical treatment center.
There would be an additional approximately 50 to 60 full-time professional, administrative, and
support staff working at the site. As part of this use, the Salvation Army would propose to
construct a new building that would accommodate the facility's administrative and housing
needs. The total cost of improvements to the site is estimated at over$14 million.
The Salvation Army has submitted a detailed letter describing their concept, their interest in the
property, images of similar facilities, as well as two possible scenarios for the configuration of
the building as a single or a multi-story addition (Attached). As part of the plan, the applicant is
proposing to make landscaping enhancements to give the site a campus-like operational setting
and also to construct 70-80 additional parking spaces for the Salvation Army's employees and
visitors.
Possible Review Process
Presently, the Zoning Code does not allow residential uses within the I-Flex Zoning District.
Land uses that are not specifically identified in a city's zoning code as permitted or conditional
City of Arden Hills
City Council Work Session for February 13, 2012
P:WlanningWlanning Cases12012U2-004-1300 Grey Fox Road-Salvation Army Concept Review103-07-12-CC Work Session Report-
Concept Review.doex
Page 2 of 4
uses are considered prohibited. In order to accommodate the applicant's request to allow a
residential facility at the proposed site, the City would need to amend its Zoning Code. The
processing/warehousing facility is a permitted use in the I-Flex District.
If the Council indicates that they would be open to reviewing an application by the Salvation
Army, there are several options for processing their request. The Council could amend the
Zoning Code to allow residential facilities,which are distinct from multiple dwelling units, in the
I-Flex District, subject to the approval of a Master and Final PUD. Conditions could be added to
the Zoning Code that would effectively limit this type of use to this parcel only.
A second option would be to allow the residential facility use through an interim use permit
(IUP) process that expires if the Salvation Army ever were to sell the property. While the
Salvation Army is a reputable organization that successfully operates 120 similar facilities
throughout the United States, the same might not be true for other owner/operators of residential
facilities such as this. Going through an IUP process protects the City in the event that the
Salvation Army was to ever leave the site. Developers often do not prefer IUP's because they
can make financing difficult for a project. Banks tend not to want to finance projects that have
what they term "sunset provisions". Because the Salvation Army is entirely self funded, they
have indicated that they would be open to an IUP.
Discussion
One of the challenges that the Salvation Army has faced in their search for a new home has been
the unique nature of the combined uses on the site. The residential facility is an integral
accessory component to the larger industrial use of their distribution center. It has not been easy
to identify sites that can accommodate both needs.
From the City's perspective it is important that careful consideration be given before amending
the Zoning Code to allow a new use. Residential uses are not something that have been seriously
considered in the I-Flex District before. A large component of the site would be dedicated to
materials processing and warehousing, which is a permitted and appropriate use in this area.
As with all development projects, Staff has thoughts and concerns that would need to be
addressed prior to the City granting approval for an application. Traffic and parking are not
significant issues on this site, given the historical use of the parcel, and surrounding area, as
commercial/industrial. Though, with the added residential component to the site, a close look at
impacts on police and fire calls, and general safety and security at the site is warranted.
Furthermore, Staff would encourage a discussion about whether a residential facility impacts the
rest of the I-Flex District or the adjacent B-2 District.
City of Arden Hills
City Council Work Session for February 13, 2012
P:W lannin&lanning Cases12012W-004-1300 Grey Fox Road-Salvation Army Concept Review103-07-12-CC Work Session Report-
Concept Review.doex
Page 3 of 4
Requested Action
The Council is being asked to review the submitted concept proposal by the Salvation Army and
provide feedback on the proposed use at 1300 Grey Fox Road. Representatives of the Salvation
Army will be available the evening of the work session to provide additional details about their
program and answer questions from the Council.
Attachments
Application and Supporting Materials
City of Arden Hills
City Council Work Session for February 13, 2012
P:IPlanningOanning Cases12012112-004-1300 Grey Fox Road-Salvation Army Concept Review103-07-12-CC Work-Session Report-
Concept Review.docx
Page 4 of 4
The Salvation Army Minneapolis ARC
1300 Grey Fox Road; Arden Hills
Presentation Summary
February 71h, 2012
Background
The Salvation Army Adult Rehabilitation Center (ARC) is a mixed-use, live-work facility
comprising the following uses: Warehouse facility for donated household goods processing,
storage and distribution; residential living facility with ancillary educational, counseling
recreation, worship and dining facilities; and administrative and operational headquarters. There
are over 120 such facilities operated by The Salvation throughout the United States.
The resident beneficiaries are men who reside on site and participate in a 6-8 month residential
and work rehabilitation program which consists of a regular full time work in various aspects of
The Salvation Army ARC processing center operation and regular participation and instruction
in educational, counseling and spiritual programs. Individuals participating in the ARC program
do so voluntarily. Individual participants in the program find The Salvation Army ARC through
a variety of community referral sources. As a voluntary, non-licensed program, The Salvation
Army adheres to strict guidelines concerning the background and physical and mental condition
of its participants. Individuals who do not meet or adhere to these guidelines are referred to
other appropriate programs or service providers. The ARC receives no governmental funding
and does not operate under any governmental programs. The ARC sustains its operations
through the collection, processing and resale of donated goods.
The Minneapolis ARC currently operates at 900 4th Street in Minneapolis and has been at this
location since 1964. The current buildings are functionally and physically obsolete and no
longer meet The Salvation Army's operational needs.
1300 Grey Fox Road Property
The property at 1300 Grey Fox Road in Arden Hills has been identified and meets The ARC's
site location and facility requirement criteria. The property would be developed with the
following use components:
• Retaining and operating the existing 84,912 square foot warehouse processing facility in its
current or a partially renovated configuration to accommodate the use components. The
Salvation Army would continue use of the existing rail spur serving the site to transport
goods and material across its network of facilities, vendors and customers;
• Constructing a building addition with the following possible configurations:
Scenario A: An approximately 45,000 - 48,000 square foot multi-story addition to
the site to accommodate a multi-functional facility for administrative functions for
The Salvation Army's 50-60 full time professional and administrative staff,
classroom, worship, meeting room, recreation and dining and residential living for
130 beneficiaries. A conceptual site configuration is attached.
Scenario B: An approximately 10,000 - 15,000 square foot single or multi-story
addition to the site to accommodate the administrative and chapel components of
the use along with interior renovation within the existing building for a two level
residential, classroom, recreation and dining operation. The 27+ foot interior wall
heights allow the building to be converted to multi-level interior use as presently
exists in a portion of the office space in the building.
In recent years, The Salvation Army has developed and redeveloped ARC facilities in other
locations throughout the country and the architectural concept and function that would be
pursued with the Arden Hills plan is reflected in the images attached (Kansas City, MO;
Omaha, NE; Romulus, MI).
In either of the above scenarios, architectural consistency and aesthetic enhancements to
the existing building and new structures would be incorporated into the design program.
• Outdoor open/green space environment to blend with a campus-like operational setting;
• Approximately 70-80 parking spaces for The Salvation Army employees, visitors and
guests will be sufficient for the parking needs of the use (50-60 employees with different
hours). The resident beneficiaries are not permitted to drive vehicles therefore no parking
for the residential program is necessary.
Site Considerations
The site meets The Salvation Army's criteria from several perspectives:
• A principally industrial use site to allow The Salvation Army to operate its processing
center. On an annual basis, the center will process some 14 million pounds of donated
household goods that will be sorted and distributed to The Salvation Army stores for
resale. Goods that cannot be resold will be recycled, sold in bulk or disposed. The
residential program and ancillary functions are integral yet accessory uses as the general
programmatic/site use functions are as follows:
Site Function,. r77 7777 j Iroz SF, A rox %o,4fSite` Tse;
Warehouse/Processing 84,912 64%
Administrative/Classroom/Support Functions 27,766 21%
Residential Program 19,833 15%
TOTALS 132,511 100%
• The proximity to convenient highway transportation networks supports the daily use
function of the warehouse and distribution operation (approximately 64 commercial
vehicle trips per day) and approximately ten semi-trailer truck deliveries per week;
• The property is "buffered" by a significant tree line along Snelling Avenue on the west,
railroad to the south and light industrial and office use to the north and east. This
locational setting provides a unique and suitable set of elements that would be conducive
to the use operation and avoid disruption to residential neighborhoods;
• The property is located within 4/10 of a mile from the Lexington Avenue shopping
district and transit. The close proximity to commercial services and transit access
provides convenience and appropriate proximity for this live-work use.
The Salvation Army and its real estate consultants have assessed the current zoning district (I-
Flex) and the considerations that would be involved in permitting the use under the current City
of Arden Hills code. The unique nature of the live-work operation of The Salvation Army ARC
will require modification and a specific zoning permit. Therefore, the potential path to the
necessary set of zoning actions that could be considered if the City of Arden Hills is interested in
supporting the use would include,but not be limited to, the following:
• Allowing a "residential facility" vs. a "residential use" in the I-Flex District. The
distinction with The Salvation Army ARC and its unique program is that its beneficiary
residents participate voluntarily and relatively short term (6-8 months). Therefore, while
the residential facility component is an element of the program, it is accessory to the
principal function of the property, yet integral in that in order to reside at the facility, one
must work within or as part of the ARC facility operation during residency;
• Placing durational and operational restrictions on the use through the Interim Use Permit
(IUP) procedure. The Interim Use Permit would provide a mechanism to specify and set
conditions specific to The Salvation Army as the IUP permittee. For example, hours of
operation, limitation on the number of residents, physical use conditions and permit
termination conditions would be specified. Because The Salvation Army is a self funded
organization that would own and operate the property long term, such conditions and
restrictions under an IUP and development agreement would be manageable. In addition,
other title restrictions could be considered as an IUP condition that would not allow
expansion of the use or operation of the use by any other organization other than The
Salvation Army or its affiliated business units;
• Site landscape and streetscape and architectural treatments would be considered by The
Salvation Army that would considerably enhance the site and adjacent right of way in
comparison to what may typically be delivered by another industrial use in this zone.
Economic Impact
The Salvation Army will make a substantial investment of over$14,000,000 into its ARC facility
project. The Salvation Army will employ 50-60 full time professional, administrative and
support staff at this location. The Salvation Army stores employ another 200+ full time, part
time and seasonal staff at its nine Twin Cities locations, with a combined annual payroll of
nearly $4 million. In addition, The Salvation Army will continue to provide a nationally
recognized and mission critical social and work force development service in the Twin Cities
region with an overall service impact approaching $10 million annually without governmental or
other outside funding support.
Summary
The Salvation Army ARC is proud of its service outreach within the Twin Cities metropolitan
region and has always strived and has found success in being an exemplary corporate citizen and
business operator. Given its excellent long term history of nearly 100 years of operation in the
Twin Cities and the need to replace its existing facility, The Salvation Army would like to work
collaboratively with the City of Arden Hills as a regional home and community partner on this
important investment, operational and business endeavor.
Attachments:
• Area and Site Location Maps
• Conceptual Site Plan Study Scenarios
• Similar Project Examples
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