Agenda - Council Work Session - 05/28/2013

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CC Work Session 4. 1. Meeting Date: 05/28/2013 Submitted For: Patrick Brama By: Patrick Brama, Administrative Services Title: RECEIVE INFORMATION & UPDATE: 15153 Nowthen Blvd Property Development Background: General Background The City was approached by Connexus Energy in the fall of 2012 regarding the development of City owned land located at 15153 Nowthen Boulevard; known as the Old Municipal Center Site ("Subject Property"). The Subject Property is 21.24 acres in size and is currently zoned Public/Quasi-Public. The City is considering two general development scenarios for the Subject Property: data center and single family residential. The City completed a feasibility study on said development scenarios in early 2013. The next step in the process to develop the Subject Property is to consider the appropriate land use and zoning. Staff was directed to conduct a public open house regarding a potential zoning amendment and future development of the Subject Property in April 2013. Purpose of Case • Receive feedback from the April public open house (including other public input) • Receive updated site concept plans and feasibility study (mitigated to address public input) • Receive EDA input regarding the future development of the Subject Property • Receive timeline from Staff (see attached) Detailed Background Connexus Energy identified the Subject Property as the best available data center site in the entire County of Anoka in the fall of 2012; and, proposed the City partner with their organization to pursue development of the Subject Property for a data center user(s). Previous to receiving Connexus Energy's proposal, the City Council identified the Subject Property as surplus City owned land; as it is unneeded for current or future City functions (summer of 2012). Both the EDA and City Council directed Staff to pursue the proposed partnership with Connexus Energy in the fall of 2012. However, a number of key development issues would need to be resolved before either the EDA our City Council were able to pledge their full support for a data center development. Major items included: a feasibility study (cost -benefit analysis) and Zoning/Comprehensive Plan Amendment for the Subject Property. The EDA and City Council were both interested in how the proposed data center use would fit in with surrounding properties. Feasibility Study In early 2013, the EDA and City Council reviewed a feasibility study for the development of the Subject Property. Said study compared three general development scenarios: a single data center user, two data center users and a single family residential development. In summary, said study identified a data center development to be considerably more beneficial to the City than a single family residential development from a financial standpoint. The following sections of this case will discuss compatibility with surrounding properties from a land use perspective. Additionally, a data center development provided the City with a funding source for the City's new Fire Station #2. NOTE: Fire Station #2 is temporarily located on Subject Property. Attached to this case is the feasibility study. Upon review of said feasibility study, Staff was directed to move forward with identifying a zoning solution for the Subject Property. Staff was directed to conduct an open house prior to formally bringing forward a zoning