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HomeMy WebLinkAbout20090420 - VIII-B-1Memo To: Mayor Hicks and City Council From: John Hinzman, Planning Director Date: April 20, 2009 Subject: Preliminary Land Credit Sale and Concept Plan -Red Wing Dental Arts -Lot 7, Block 2, Hastings Industrial Park No. 7 -Lightbourn Court REQUEST Gary locco of Red Wing Dental Arts seeks to acquire Lot 7, Block 2, HASTINGS INDUSTRIAL PARK NO. 7. The 1.0 acre property is located on the northwest corner of Lightbourn Court and 31 st Street East. The following actions are requested: 1) Preliminary approval of a land credit for property acquisition. Land credits would exceed the cost of the property, allowing the land to be sold for one dollar. Preliminary approval will set the property aside while complete plans and a formal development agreement are drafted and submitted far final approval. 2) Concept plan review to construct a +/- 6,048 manufacturingloffice building. Mr. locco has provided preliminary floor plans and elevations. Final Site Plan approval will be necessary prior to execution of the land credit agreement. RECOMMENDATION HEDRA recommended preliminary approval of the land credit application at the April 9, 2009 meeting with limited discussion. BACKGROUND INFORMATION Red Wing Dental Arts Red Wing Dental Arts is afull-service dental laboratory, with facilities in Red Wing and Cottage Grove. The laboratory produces dentures, partials and restorations. Gary locco serves as President of Red Wing Dental Arts as well as Managing Partner of Labboy Enterprises, LLC the proposed property owner. Please see their web site http://www.labboy.cam for further information. Red Wing Dental Arts- Land SalelConceptual Site Plan Review City Council Meeting -April 20, 2009 Page 2 Comprehensive Plan Classification The use conforms to the 2020 Comprehensive Plan. The subject property is classified I, Industrial. Zoning Classification The subject property is zoned I-1, Industrial Park. Manufacturing and offices are permitted uses in the I-1 district. Adjacent Zoning and Land Use The following land uses abut the property: Direction Existing Use Zoning Comp Plan North Vacant I-1 -Industrial Park I -Industrial East Lightbourn Court Vacant I-1 -Industrial Park I -Industrial South 31St Street DNR Land Marshan Twp Marshan Twp West Midwest Products I-1 -Industrial Park I -Industrial Existing Condition The existing site is flat and treeless. The lot was rough graded for development as part of the Lightbourn Court improvements in 2006. BUSINESS SUBSIDY ANALYSIS Summary Land credit for 1.0 acres valued at $295,833 to construct a 6,048 s.f. manufacturing and office building at a cost of $425,000 and create 14 jobs at no less than $13.00 per hour. Market price of land is $71,874 (1.0 acres x $1.65 per s.f.). Land could be sold for one dollar subject to meeting land credit requirements within five years. Justification for Subsidy • Increase tax base by selling currently tax private entity. • Creation of 14 new living wage jobs. • Promised jobs equate to 14 jobs per acre, jabs per acre. exempt property owned by the City to a exceeding the minimum benchmark of 3 • Building coverage and parking will exceed the 20 percent minimum lat coverage objective. • Proposed use serves as a good transitional use between more intensive industrial development and nearby residential areas. Red Wing Dental Arts- Land SalelConceptual Site Plan Review City Council Meeting -April 20, 2009 Page 3 Land Credit Calculation HEDRA amended the Land Credit Calculation at the April 9, 2009 meeting. Credits are determined as follows: • Amount of Subsidy: $71,873 (value of 1.0 acres less $1.00) • Estimated Building Credit in Five Years: $42,500 = ($425,000 * 10%} • Estimated Payroll Credit in Five Years: $253,333 = ($570,000 payroll / $27,000) z $12,000 • Total Estimated Credits: $295,833 = ($42,500 + $253,333) • Estimated Balance Due in Five Years = $0 Land Credit Requirements 1) Complete a 6,048 s.f. building with an estimated cost of at least $425,000 within one year of executed agreement. 2) Create 14 new jobs at no less than $13.00 per hour within five years of receiving a certificate of occupancy for the building. 3) Remain in business in Hastings for at least five years from date of occupation. 4) If the above requirements are not met, the owner has to repay the City a prorated share of the subsidy. CONCEPTUAL SITE PLAN REVIEW Red Wing Dental has submitted a floorplan and architectural elevations. A concept site plan has yet to be submitted. The fallowing comments serve to guide future site plan development and are based on the information received and property characteristics. Site Plan Approval Site Plan approval through the Planning Commission and City Council will be necessary prior to execution of the Land Credit agreement. Use Construction of a +/- 6,048 s.f. manufacturingloffice facility for manufacturing of dental products and associated office space. Red Wing Dental Arts- Land SalelConceptual Site Plan Review City Council Meeting -April 20, 2009 Page 4 Zoning Setbacks Setbacks in the I-1 District are not specified. It appears the lot provides adequate room for construction of the proposed building and associated parking consistent with adjacent setbacks. Access and Circulation The property is located at the corner of Lightbourn Court and 31St Street. Mr. locco has indicated a preference fora 31St Street entrance. Adjacent properties have multiple accesses on different streets. Parking The site must provide 21 parking spaces based on preliminary estimates. Parking for office uses is calculated at 1:300 s.f. All parking and driveway areas must be constructed of bituminous surfacing and concrete curb and gutter. Parking Lot Setback Parking lot setback will need to be further examined upon site plan submittal. Architectural Building Elevations Architectural elevations need further examination. Industrial warehouse and manufacturing buildings require a combination totaling 75% of Class 1 and 2 materials (per the zoning ordinance) on front facades. The proposed brick and glass are listed Class 1 materials, the proposed Smartside Siding (a treated engineered wood siding) might not be considered as a Class 1 or 2 material. Landscape Plan & Berming A landscaping plan will need to be submitted Grading and Utility Plans A grading and utility plan will need to be prepared as part of Site Plan approval. Stormwater Drainage A stormwater drainage plan will need to be prepared as part of Site Plan approval. ATTACHMENTS • Location Map • Site & Building Plans • Application for Land Credit Print Pre~-ie«- Dal~o>ta Count-, MN Pagz 1 of 1 a~en~~+: F ~' ~ rt ~J ~1 i ~ i y ~~ ~ r_ ~. ~ ~ f{{ ~~ ~ ~ ` FF ~.' +~ 6 -5 tin, gy I ~ M • ~ ~ d 1 _ ~Y -~ W .. ~' ~~ L. ~~ E - y ~, fi~ ~! ;.;. ~ . ~T ~'. . kY - ~. Proposed Site 9, i ~~~ ~'~ i •T r w ~e 5~t . y - p1r ~, ~~ i~ ~, xi9 , ' F- ~ ~ ,~ -V't _', 'f'- 1~ - ';~ -' l~ i ~~' ,~~ .. S°= ~V 'i ; Disclaimer Map and parcel data are believed to be accurate, but accuracy is not Map Scale guaranteed. This is not a legal document and should not be substituted for a title search, ~ inch = 378 feet appraisal, survey, or for zoning verification. httli: 'gis.co.daltota.mn.us «zb~itz'clakotanzt~is printPravie«-.asp1?PrintOptData=Dalcota L... ~ 3 2009 -_- - ~- - - - ! >I a ~ - ~. V - --- - -- - ~.. i. I ~ ~~ ~ ~~ ~~~I ~ I ~ - J I i J ~ i ~. ~d O 1 ~; k ~_- _ _-. -. V i i y ;~ ~ - ~ 1_ i _ 1_ I-- -~ ~ i~ _ ,, ~ ~t ~ ~ ~ ~ w+ _ ~ ~^ ~ 3 ~ _ ~I ~~ ~ ~~, -~ - ~~ ~~~, I~~ ~ _ _ 1 I i '. `~.. __ ~L_O _T1 I T ~ O ~~ i ~.J i ~- ~ ~ ~ ~i, ~ f I _ III ,. z ~ ~ ti ~ I~~, u `v',, __~ _ ''~ r ~- I - ~' I II ~ ~ - -- ~ . ~` i 1 ~; ~ro I I M ~? 'vy 4 Fl I Lb _r __ -- -- 9i 3 ,, z ~'~ Ii I I I ~, ~ i ~. ~i,'. i i ~~i i ~ I !~ I~~ iij ~, '' !" ~' II, l_ z L c ~I 1J _ ~ . ,y 7 3, ~ u ~ d ~ ~ __ ~~~ / I~~ . ~~, i~ ,~ I ~ _; ,, 1 I ~ 1 i~ -~ !~~ ~ ~ - ~_ ~~~ -~ W1I I ~ ~ `~ ~- ~ i _ I E~~J _ i~ it 11 ~ -~ Iii ~ -_ ;~ ~ II ICI ~~i ~ I ~ ~ '`i ,,, ' `'~ \,lil_~~ i~ - I ! 1 I_ _!. April 2, 2009 John Hinzman City Of Hastings Dear John, Enclosed please find our land subsidy needs some areas filled in with inform. of the land. We are looking at Lot 7 0~ As we discussed an the phone, it ~e as of yet, such as legal description Court. Please contact me with any questions ~Empressbe~~t,~,La!b~ - , , ~~dic~` 1 9 provisiona & diagnostic resin ESTHETIC E~rr~~cit~ica~l `~~~It.~i_i~~~-~;_, a w ao 00 A INFORMATION FOR LAND PRICE SUBSIDY AGREEMENT 1. Name, address, phone of developer (the persons or entity that will be the owner of the land} Gary Iocco Labboy Enterprizes, LLC 1434 Old West Main Street, Red Wing, MN 55066 65 I-388-4464 2. Developer's type of entity (corporation, partnership) recorded with the Secretary of State Limited Liability Carp. 3. Developer's Federal Tax ID number 4. Full names and title {president, etc.) of those signing agreement for the developer Gary Iocco, Managing Partner 5. Property: the acreage and legal description of the city property to be sold (2.1): 6. The market value of the property to be acquired (3.2) 7. The agreed purchase price .(3.2) 8. Difference between purchase price and market value of the property, the subsidy (3.8): 9. Date to which payment is deferred (3.8) 10. Casts to be paid before or at closing (3.4, 3.5} (examples listed, note any changes} a. By City: Title update or abstract continuation Boundary survey of parcel Deed Tax Conservation Fee b. By developer: 4 Purchase price Title insurance commitment Survey for elevations & site plan Environmental phase I if required Attorney and consultant fees for agreements, financial reviews and applications Recording fees far deed mortgage & development agreement 11. Proposed size and market value of buildings to be constructed on the property(2.2) 6048 Square Feet, $425,000.00 12. Proposed annual payroll (increase over existing) on the property in five years (2.2) $570,000.00 13. Estimation of credits (3.8) See examples in summary. a. construction credit example b. jobs credit example 14. Job and wage goals to be reported to Minnesota Department of Trade & Economic Development. (3.9) to comply with Business Subsidy Act. a. Number of new jobs created by the business two years from occupancy: 12 b. Hourly wage of new jobs to be no less than: Entry Ievel $10.00 We barely hire entry level, other wages $15.00-24.00 per hour 15. Construction (4.3) a. Building construction costs (include parking lots, not land): $425,000.00 b. Approximate beginning and completion dates of construction and all site work: We yvould like to start construction by June 1, 2009 if all permits have been obtained 16. If the developer is not the same entity as the business which will occupy the building and provide the job creation, provide the following for each tenant: a. Business name Red Wing Dental Arts b. Address and phone Same as developer c. Names and titles of owners of the business Same d. Type of entity recorded with state e. Tax ID number of business. 41-1314441 f. Nature of the business (what product, process, material) Dental laboratory g. Percent of building space to be occupied by business 100 h. Number of the jobs given above (14) that this business be responsible for: 17. Recent history of the business or if new, the owner's experience in the business and/or resume (Use separate page and business letterhead if available). 18. Business references, contact person and phone number: a. banker Bruce Downey, Gateway Bank, Mendota Heights, MN 651-209-4800 b. supplier c. customer 20. Project finances a. Uses of funds b. Sources of funds 6 fees $ soft costs $ construction $ equipment $ Totals: $ $425,000.00 21. List all lenders, contact persons, phone numbers Bruce Downey, Gateway Bank 651-209-4800 22. List all sources and amounts of public assistance including land, government loans and grants (including those you have or may apply far) Hastings Land subsidy program 23. The developer will have to provide business financial records to a consultant hired by the City. The information will be confidential to full extent the law provides. 24. Any lawsuits or actions pending against the developer, busines(s) or partners? No 25. Name, title, signature of person providing the above information. Gary Iocco ,1V~anaging partner Labboy, LLC and President Red Wing Dental Arts date developer's cash $ loans (by lender} $ public funds (not land) $ 7 i