Agenda - Planning Commission - 08/01/2013

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At full build out, a data center development would have significantly lower traffic impact on surrounding properties than would a residential development. It is estimated a data center development would create 64-96 vehicle trips per day and a residential development create 470 trips per day (at full build out). It is proposed, a data center development would attain road access exclusively from Nowthen Boulevard; and that a residential development would attain road access to Helium Street. The City did receive a response from the Anoka County Highway Department on the preliminary sketches. Anoka County's response was that they desire to eliminate the access onto Nowthen Boulevard, as the current alignment interferes with future turn lanes and restricted turn movements. Staff is working with County Staff to clarify and explore all options. Staff would have a more formal answer as part of the formal amendment process. Spot Zoning Several residents indicated using the Subject Property for a data center would be considered "spot zoning." NOTE: "spot zoning" is not addressed in State Statute; it is a part of case law and planning literature. Staff had a chance to review the Subject Property with the League of Minnesota Cities, the City's Planning Division, and the City Attorney. Considering the follow factors, Staff does not believe the City is in violation of "Spot zoning": large size of the Subject property, the City is using the property for a rational use, there is a public purpose for developing the Subject Property, the previous/anticipated use of the Subject Property was for either a school/municipal center complex, the City would enforce strict land use regulations to ensure a data center use would transition/be compatible with surrounding properties and the City would pass a Comprehensive Plan Amendment before moving forward. Property Values Nearly all residents indicated the establishment of a data center development would reduce the value of their homes; and therefore is undesirable. It is possible the establishment of a data center development would reduce the value of surrounding properties. However, it is also possible the establishment of a data center development could sustain or even increase the value of surrounding properties; depending on the quality of the project and the required screening/land use regulations (when compared to the alternative). This item is subjective. Staff had a chance to review this item with the League of Minnesota Cities and the City Attorney. Most case law indicates this conclusion is subjective and unclear. Staff would recommend the City update their comprehensive plan to reflect the desired zoning before moving forward with either development scenario (residential or data center). Risk/Market Failure A number of residents are concerned that a data center development will eventually fail; and, that another type of user would eventually take over. Said user may not work well with surrounding properties. Like any business, the risk of a data center development failing is real. The City does not have the ability to mitigate this risk. However, in the event a data center user failed, the City does have the ability to regulate the next user. It is likely, an office type reuse would fit in best with surrounding properties. The City has the ability to control the use of the Subject Property through land use regulations; in this case, a Planned Unit Development (PUD) or an Overlay District. Use of Subject Property for a Park Several residents indicated the City should develop the entire Subject Property into a park. If a data center project was located on the Subject Property, Staff would recommend the Council consider dedicating a piece of land for public open space (programming to be determined). Staff has reflected this recommendation in the revised site concept plans.