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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 , 1 � _ a: ID + +} + y vw 13 _ 1 C , w G= • 3 NN enb�4MP'a�L N eny en�weH -. fisd Fox W mad e. ndr o. uj U gay/ t d ♦ f r +1 cc lu d�yihyfq,+ xA h '+ a i O cc some N any uol6u'xal G - N eny 00;0 yfix - _ r c Q Y. tI. s F t i Y, T� !f -' * e Ill LA 31a w, cc O F ' ell O �Y (� 44 L F. A � A r €- A W �f 110 r• g! fwxisting Narkir (50+spaces ,, f,> c .F • �'�;ap f I N e], t� C U) o @ C) L O W W m p N T N N ,C N 7 A ' O E u Q O = c, (D O W " . NW LL Qa cn N F1 N @ ili I d co O N a- cc CD CL Ln ik M c Jir r ON L 1,. . 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