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Home My WebLink AboutItem 03.cCity of Lakeville Planning Department Memorandum To: Mayor and City Council From: Daryl Morey, Planning Director Copy: Dave Olson, Community and Economic Development Director Date: January 21, 2016 Subject: January 26, 2016 City Council Work Session – CSAH 70 Escrow Discussion Background At their November 16, 2015 meeting the City Council approved the preliminary plat of Interstate First Addition located in the southeast quadrant of CSAH 70 and Highview Avenue. The property is being platted for the construction of a new Interstate Power Systems truck repair, storage, office, limited retail sales facility. At the November 16th Council meeting, the applicant (Jack Matasosky, Appro Development) and business owner (Travis Penrod, Interstate Power Systems) questioned the City’s requirement to submit a cash escrow for the future upgrade of CSAH 70 with the final plat. They questioned the cash escrow requirement given that the future upgrade of CSAH 70 is not currently planned. They also questioned whether any other industrial plats along CSAH 70 were required to submit the future upgrade escrow. The City Council directed staff to research plats approved along CSAH 70 to determine if the future upgrade fee had been collected, prior to their consideration of the Interstate First Addition final plat. Analysis Associate Planner Frank Dempsey has researched the plat files for all Industrial and Corporate Campus zoned properties approved in the last 20 years in the CSAH 70 corridor area, which also includes plats adjacent to Dodd Boulevard (CSAH 9), Cedar Avenue (CSAH 23), and Hamburg and Highview avenues, which are local collector streets. The results of Mr. Dempsey’s research are included in the attached memo dated December 23, 2015. As pointed out in Mr. Dempsey’s memo, the cash escrow for future street upgrade is a requirement of the Subdivision Ordinance. His research indicates that the future street upgrade escrow has not been collected in the past 20 years for plats abutting CSAH 70, mainly because the improvements were not planned for the immediate future. 2 Recommendation Because CSAH 70 is unique in that its traffic is more regional in nature and because it may be reclassified in the future as a principal arterial, an option to collecting a cash escrow with the final plat would be to assess benefitting properties at the time of the CSAH 70 improvement project. Assessing benefiting properties would potentially reduce the need for debt financing as well as reduce the tax burden on Lakeville property owners as a whole. Staff would have to work with the City Attorney’s office to determine how to implement an assessment for a County road improvement project. Language may be needed in the final plat development contract acknowledging the future assessment. Dave Olson and I will be present at the work session to answer questions related to this agenda item. Attachments: • December 23, 2015 memo prepared by Associate Planner Frank Dempsey • November 16, 2015 City Council meeting minutes 1 City of Lakeville Planning Department Memorandum To: Daryl Morey, Planning Director David Olson, Community and Economic Development Director From: Frank Dempsey, Associate Planner Date: December 23, 2015 Subject: Industrial Plat Research - Street Upgrade Cash Escrows At the direction of the City Council, staff has completed research on the collection of the future street upgrade cash escrow for industrial and office related plats approved in the County State Aid Highway (CSAH) 70 corridor area. The City Council directed this research when they approved the preliminary plat of Interstate First Addition at their November 16, 2015 meeting. Dakota County requires that cities with populations greater than 5,000 participate in 45% of the cost of County highway construction projects. The street upgrade cash escrow has been collected for industrial, commercial and residential developments at the time of plat approval when they abut County Roads as a means of paying a portion of the City’s 45% percent share. Due to Lakeville’s recent rural past, Dakota County highways have been of rural design without the adequate right-of-way to accommodate future improvements need to accommodate increasing amounts of traffic. As development occurs, cash escrows have been collected to help off-set the direct public funding of completing the future improvements solely through debt financing or through ad valorem taxes. Section 10-5-3-1 reads as follows: As a condition of plat approval, when property being platted is adjacent to an existing collector road, highway, or substandard streets which need improvement, the developer shall dedicate land for the widening or improvement and shall post a cash escrow acceptable to the city for the cost of the improvement. This provision shall only apply when the need for the improvement is caused by the plat or surrounding development. The following includes information for each noted Industrial or Corporate Campus zoned property that received final plat approval in the past 20 years that abuts a County State Aid Highway (CSAH) or a local collector street in the CSAH 70 corridor area. The research indicates the final plats that abut CSAH 70 for the most part have not paid the future street upgrade cash escrow due to other street improvements being constructed and paid for by the developer as a result of conditions imposed by Dakota County. In most instances, the final plats were not required to pay the future street upgrade cash escrow but 2 were identified to be assessed in the future at the time that Dakota County initiated the road improvement project and the costs were identified. CSAH 70 is unique in that its traffic is more regional in nature and that the corridor may be classified in the future as a principal arterial road. CSAH 70 (215th Street) Airlake Development Addition (1995) • Property is abuts CSAH 50 and CSAH 70 • 33.7 acres/zoned I-2 plat • J & E Manufacturing • The development contract states that CSAH 70 will not be upgraded for many years. No escrow was collected. Future upgrades were not collected for the portion of the plat abutting CSAH 50 since that portion of CSAH 50 was paid for with MNDOT turn- back funds. Airlake Development 2nd Addition (1996) • Property abuts CSAH 70 • 10.23 acres/zoned I-2 • The future CSAH 70 upgrade escrow was not collected since improvements were many years in the future. Assessments for future improvements will be determined at the time of the future improvement project. A right turn lane was installed by the developer at Grenada Avenue as required by Dakota County. DHY Addition (1997) • Property abuts CSAH 70 and Holyoke Avenue • 8.7 acres/zoned I-1 • The future CSAH 70 upgrade escrow was not collected since improvements were many years in the future and would be initiated by Dakota County. Progressive Rail 1st Addition (1998) • Property abuts CSAH 70 and Highview Avenue • 21.1 acres/zoned I-2 • The future CSAH 70 upgrade escrow was not collected since improvements to CSAH 70 were not proposed for many years and were not is not in the Dakota County CIP. A right turn lane was constructed on CSAH 70 at Highview Avenue. Grenada Business Park (1999) • Property abuts CSAH 70 • 6.5 acres/zoned I-2 • The future CSAH 70 upgrade escrow was not collected since improvements to CSAH 70 were not proposed for many years. A west-bound right turn lane was constructed on CSAH 70 at Grenada Avenue. 3 Acorn Tappe 1st Addition (2001) • Property abuts CSAH 70 and Highview Avenue. (Future Interstate 1st Addition lot) • 28.71 acres/zoned I-2 • The future CSAH 70 upgrade escrow was not collected since improvements to CSAH 70 were not proposed for many years. A right-turn lane was constructed for east-bound CSAH 70 at Heath Avenue. Airlake Development 5th (2002) • Property abuts CSAH 70 • 34.7 acres/zoned I-1 • The future CSAH 70 upgrade escrow was not collected since improvements to CSAH 70 were not proposed for many year. The Developer submitted a cash escrow for the future construction of Humboldt Road. Airlake Development 6th (2002) • Property abuts CSAH 70 and future Humboldt Raod • 21.5 acres/zoned I-1 • Future CSAH 70 upgrade escrow was not collected since improvements to CSAH 70 were not proposed for many years and assessments to the property for future improvements would be determined at the time of the improvement project. Significant street improvements to CSAH 70 was funded by the developer and shared by the City which included CSAH 70 and Holyoke Avenue intersection improvements. The developer also funded the construction of additional pavement and an east-bound right turn lane and a west-bound left turn lane as well as lane tapers east and west of the site along CSAH 70. Clemmer 1st Addition (2004) • Property abuts CSAH 70 and future Humboldt Road • 7.55 acres/zoned I-1 • The future CSAH 70 cash escrow was not collected because improvements were not anticipated for many years and assessments for future improvements would be determined at the time of the improvement project. Creekside Business Park (2005) • Property abuts CSAH 70 • 14.6 acres/zoned I-1 • The developer dedicated 33 feet of CSAH 70 right-of-way and realigned Humboldt Road • The future CSAH 70 upgrade escrow was not collected Airlake South Creek Business Park (2006) • Property abuts CSAH 70 and CSAH 23 • 6.76 acres/zoned I-2 • The future CSAH 70 and 23 cash escrows were not collected. 4 Chadwick Commercial (2006) • Property abuts CSAH 70 • 9.6 acres/zoned CC • The developer dedicated the entire right of way and construction of 214th Street frontage road • The future CSAH 70 cash escrow was not collected Chadwick Commercial 2nd (2006) • Property abuts CSAH 70 • 4.5 acres/zoned CC • The developer dedicated the entire right of way and funded the constructed the 214th Street frontage road • The future CSAH 70 cash escrow was not collected CSAH 9 (Dodd Blvd) First Park Lakeville 2nd Addition (2008) • Property abuts CSAH 9 • 18 acres/zoned I-1 • The future street upgrade and trail construction escrow was collected for CSAH 9 FedEx Lakeville (2015) • Property abuts CSAH 70 and CSAH 9 • 46 acres/zoned I-1 • The future street upgrade and trail construction escrow was collected for CSAH 9. The future street upgrade escrow was not collected for CSAH 70, however, significant CSAH 70 turn-lane and by-pass lane construction was funded by the developer CSAH 23 (Cedar Avenue) Fulford Group 1st Addition (2015) • Property abuts CSAH 9 and CSAH 50 • 40 acres/zoned I-2 • The future street upgrade and trail construction escrow was not required along CSAH 23 since no future improvements are planned. Future street upgrade and trail construction escrow will be collected along CSAH 50 when the outlot abutting CSAH 50 is platted into lots and blocks 5 Hamburg Avenue Grist Mill 2nd Addition (1996) • Property abuts Hamburg Avenue (City Minor Collector Street) • 27 acres/zoned I-2 • Seven feet of right of way was dedicated for Hamburg Avenue to accommodate future street and sidewalk improvements. No future upgrade escrow was collected for Hamburg Avenue Arden Kitchens Addition (1997) • Property abuts Hamburg Avenue (City Minor Collector Street) • 16.1 acres/zoned I-2 • Seven feet of additional right of way was dedicated for Hamburg Avenue. No future upgrade escrow was collected for Hamburg Avenue Highview Avenue Empire Builder Investments 1st Addition (1998) • Property abuts Highview Avenue (City Minor Collector Street) • 19.6 acres/zoned I-2 • Additional right of way was dedicated for Highview Avenue and included an active street improvement assessment. A right turn lane was constructed by the developer for eastbound CSAH 70 but the plat did not about CSAH 70. No future road or trail upgrade escrows were collected for Highview Avenue. Airlake Development 3rd Addition (1999) • Property abuts CSAH 70 and Highview Avenue (City Minor Collector Street) • 53.8 acres/zoned I-2 • This is the outlot (Outlot A) proposed for Interstate 1st Addition. The future street upgrade and trail construction escrows were not collected for this outlot but it was determined these escrows would be collected at the time the outlot is final platted into lots and blocks. Outlot A was subsequently final platted as Outlot B, Acorn Tappe 1st Addition; the future street upgrade escrow was not collected for Outlot B at that time. Right-of-way dedication was included along Highview Avenue with the final plat. The future street improvement escrow for Highview Avenue was not collected since there was an active Highview Avenue street upgrade assessment in place at that time. G:/Dempsey/PropertiesPlansStudiesInfo