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2 Development Opportunities on City-Owned Land | Lake Elmo, Minnesota <br />Executive Summary <br />The City of Lake Elmo, Minnesota, owns <br />approximately 180 acres of undeveloped <br />land on the city’s western edge. This acreage, <br />the result of a 2019 settlement with 3M <br />Corporation, is spread across three parcels and <br />sits at an important intersection for the city. <br />In an effort to identify the best path forward <br />for potential development of this site that <br />would provide flexibility to meet market <br />demands and tax revenue to the City of Lake <br />Elmo (the City), the City turned to the Urban <br />Land Institute Minnesota district council (ULI) <br />for insights and guidance. <br />ULI, using its trusted and objective technical <br />assistance panel (TAP) program, convened <br />a panel of real estate professionals to study <br />the site, interview stakeholders, and provide <br />the City with a set of recommendations <br />it can use as it determines how to best <br />approach development of the site. Those <br />recommendations, which address each of the <br />three parcels, are outlined below. <br />Guiding Principles <br />To help set the stage for a thoughtful <br />evaluation of the study site, the panel first <br />outlined the following principles to help guide <br />its work and shape its recommendations: <br />• Use the site to maximize community benefit, <br />enhancing the city’s fiscal strength, jobs, <br />services, housing options, and more. <br />• Maintain the image and character of Lake <br />Elmo through development at the site. <br />• Establish design and performance <br />standards to help guide future <br />development in a manner that will align <br />with the community’s character. <br />• Preserve flexibility by addressing <br />development incrementally and working <br />across the three parcels in phases. <br />• Remain ready and responsive to the <br />market by incorporating near-term and <br />long-term actions. <br />• Build internal staff capacity to help guide <br />this and future development initiatives. <br />• Define the city’s sustainability and <br />resilience goals and create programs to <br />support those goals. <br />• Integrate open space and trails at the site <br />to enhance community connectivity. <br />• Effectively manage the transition of the <br />site from farmland to development with a <br />focus on open communication and easing <br />community concerns. <br />Market Feasibility <br />The study site is spread across three parcels: <br />Parcel 1, to the south, holds nearly 21 acres; <br />Parcel 2, the center property, is over 51 acres; <br />and Parcel 3, to the north, is comprised <br />of over 102 acres. The panel created the <br />following development framework, which is <br />designed to allow for maximum development <br />flexibility through a phasing solution that <br />should support the site build-out with market- <br />viable uses. <br />Start with Parcel 1. With sewer access <br />already available at this site, this is the most <br />market-ready of the three parcels and could <br />work well for a heavy industrial user that may <br />also need outdoor storage space. Roadway <br />access will need to be addressed at the site, <br />but the panel believes the site might work <br />well for a 250,000 square foot industrial <br />building or two 115,000 square foot buildings. <br />This site could also be a good location for <br />approximately 100-150 units of workforce <br />housing or could serve as the location for an <br />expanded re-located Public Works facility. <br />Address Parcel 2 in the next phase. With <br />the addition of roadway access and sewer <br />connectivity, which will need to tunnel under <br />a Union Pacific rail line, Parcel 2 could be a <br />good location for light industrial users. With <br />room for an estimated five 100,000 square <br />foot buildings, the site could fit a number <br />of users comfortably. A utility easement <br />runs through the site, north and south, <br />and will need to be considered. Trail and <br />greenway connectivity is possible at this site, <br />particularly along its eastern edge, where an <br />existing tree line could buffer the uses. The <br />panel also considered the potential for a rail <br />spur on this or Parcel 1, which would add to <br />the industrial marketability of the sites. It is a <br />topic that should be raised with Union Pacific. <br />Consider a mix of uses for Parcel 3. Much <br />like Parcel 2, designs for this parcel will need <br />to account for the utility easements running <br />through the site, and connecting to sewer <br />will require tunneling underneath 34th Street. <br />Roadway access at this parcel, particularly <br />along 34th Street, could create new corner <br />opportunities that would be attractive to <br />potential retail tenants. The southwest corner <br />of this parcel is already occupied by the City’s