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WS – Item 9 WORK SESSION STAFF REPORT Work Session Item No. 9 Date: June 6, 2016 To: City Council From: Michael Grochala, Community Development Director Re: United Properties 35E Distribution Center/TIF request Background United Properties has submitted a request for rezoning to Planned Unit Development, Development Stage Plan Approval and Preliminary Plat approval for the 56 acre Clearwater Creek Business Park. The proposed plat includes one 30-acre lot for a proposed distribution center and two outlots for future development. The Planning and Zoning board will be holding a public hearing for the proposal on June 8, 2016. Staff has been working with United Properties regarding construction of a warehousing/distribution facility along 35E for the past six months. This has been previously discussed with EDAC, Planning & Zoning board and City Council due to both its economic development potential and zoning related site issues. Based on revisions to the site plan the proposed distribution facility is approximately 402,552 square feet in area. The applicant is proposing to pursue a rezoning to Planned Unit Development to allow for design flexibility related to the proposed storage of semi- trailers on the site. By rotating the building (dock doors facing north/south) a number of zoning issues have been addressed. Development of the site will require the extension of 21st Avenue, from Commerce Avenue to approximately 2,100 feet south. Extension of the street includes the crossing of Clearwater Creek and filling and mitigation of floodplain areas adjacent to the creek. 21st Avenue is planned to be extended to Cedar Street, further to the south, in the Comprehensive Plan. The project proposes to dedicate right of way for the entire length of the roadway. The proposed project is valued at approximately $18,000,000. Due to costs associated with the street extension, floodplain mitigation and necessary soil corrections, the developer is requesting public assistance in the form of Tax Increment Financing (TIF). Staff is currently reviewing the application and possible establishment of an Economic Development District. An Economic Development District could provide for up to nine years of increment. A review and recommendation regarding Tax Increment Financing will be brought to the City Council for consideration in July.