Agenda - Planning Commission - 08/01/2013

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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. Additionally, a data center development provided the City with a significant funding source for the City's new Fire Station #2. NOTE: Fire Station #2 is temporarily located on Subject Property. 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 Comprehensive Plan and Zoning Amendment for the Subject Property; as the EDA and City Council were interested in feedback from surrounding property owners. The purpose of this step was to identify any issues the neighborhood would have with a Comprehensive Plan and Zoning Amendment. Public Open House On April 18, 2013 the City hosted an ("Open House") regarding the future development of the Subject Property. Nearly 250 surrounding property owners were contacted via direct mailings. - Summary- Comments were received from Open House attendees; additionally, Staff received written and verbal comments outside of the Open House. In total, the City received twenty-six (26) comments. Twenty-four (24) were in opposition of a data center development (92%) and two (2) preferred a data center development (8%). Additionally, Staff received a petition in opposition of a data center development, and in support of a residential development, from surrounding property owners on April 26. Said petition included 69 signatures and has not been reviewed or analyzed by Staff. - Inquiries- Common public inquiries included, but were not limited to, the use of the site as a school, park, or renovated Fire Station. There were also multiple inquiries as to whether the data center could be sited elsewhere in the community. - Opposition to Data Center - For those opposed to the data center concept, common comments included concerns with decreased property values, presence and view of a data center being undesirable, compatibility with the character of surrounding properties, noise, and long term risk/potential re -use of the site. - Support of Data Center - For those in opposition of a residential development, common concerns were centered around the high traffic impact of a residential development and the negative effect a residential development would have on the privacy of surrounding property owners (when compared to a data center). Attached to this case is extensive information attained through the public input process. Data Center Market Interest Over the past few months, Staff has received inquiries from national builders and commercial real estate agents, Connexus Energy and the State of Minnesota regarding the development of the Subject Property for a data center user(s). Staff hasnot worked directly with any data center prospects (i.e. end users). However, it is Staffs opinion there is a strong market for data centers and the Subject Property would attract development. NOTE: the City will not work directly with end users interested in utilizing the Subject Property until the City's Comprehensive Plan and Official Zoning Map is amended (data center or residential). Observations: