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Home My WebLink About#04 - Development of 180 AcresSTAFF REPORT DATE: June 9, 2020 DISCUSSION AGENDA ITEM: Development of 3M Property (Section 16) and Sewer from Oakdale SUBMITTED BY: Kristina Handt, City Administrator BACKGROUND: As part of the City’s settlement of its lawsuit against 3M in 2019, the city received roughly 180 acres of land located along Ideal Ave near the public works facility and on both the north and south side of CSAH 14. In November, the City Council approved an application to the Washington County CDA to study the area for development and get cost estimates for public infrastructure to the area. ISSUE BEFORE COUNCIL: What are the next steps with respect to the development of the 3M property? PROPOSAL DETAILS/ANALYSIS: The city contracted with HKGI and Focus to complete the review and development potential of the 180 acres. Included in your packet is the final report. We have referred to the area as Section 16 simply because that it is the section it is located in the City. The reports includes the three different concept plans we reviewed earlier this year along with more details regarding use by acres, size of potential buildings, number of jobs and housing units. In addition, there are a couple of infrastructure exhibits, cost estimates, REC counts and sewer flow information that was shared with Oakdale. Also included in your packet is a letter from the City of Oakdale in response to my request last year asking if they would consider providing sewer service to the property. Their letter highlights 5 concerns/conditions: • Lake Elmo would Pay for the cost of a specific study to confirm the impacts and capacity of the Oakdale sewer system • Lake Elmo would pay for the cost of a rate study to determine a utility rate that covers the cost of operations, depreciation, and a rate of return on investment. The Council was also interested in identifying terms that would be in effect should Lake Elmo decide to abandon service from Oakdale. • The cities would agree to a pro-rated participation in the cost to reconstruct/relocate the lift station based upon projected flow. • Lake Elmo would provide information on the timing of expected residential development of the area to be served, as well as the schedule for the eventual build-out of all the properties. There is an uneasiness with the traffic, noise, and visual impacts of business park/industrial developments so near the imminent 200+ acre Willow Brooke residential development on the west side of Ideal Ave. Should the land use concepts for the properties in Lake Elmo become reality, Oakdale would expect extensive landscape screening and buffering for those developments along Ideal Ave. • For any of the matters identified above to be initiated, the City of Lake Elmo must give its municipal consent for Washington County’s proposed improvements along Ideal Ave (CSAH 13). FISCAL IMPACT: The city contribution for public sewer lines and oversizing as described in the report is estimated at $772,000. This does not include any costs related to the Oakdale requirements and assumes the developer would build all infrastructure internal to the sites. The costs related to the Oakdale requirements are unknown at this time. As the report points out, an alternative would be for Lake Elmo to provide sewer service from the WONE interceptor on I94 which is estimated to cost $6.8 million. If the property develops as assumed in Concept A, there are an estimate 426 RECs which would translate to $1,704,000 in WAC, SAC and connection charges for each the water and sewer fund. Also, the sale price of the property is undetermined at this point. ATTACHMENT: • Section 16 Master Plan Development • Letter from Oakdale • Oakdale Staff Report PAGE 1 of 3 MEMORANDUM Date: May 9, 2020 To: Kristina Handt, City Admiistrator Re: Section 16 Master Development Plan From: Jack Griffin, P.E., City Engineer The Section 16 Master Development Plan was prepared by HKGi and FOCUS Engineering to review and identify the potential development opportunities for the 180 acres located in Section 16 and consisting of 3 separate parcels located both north and south of CSAH 14 and Ideal Avenue. The high‐level master planning effort is intended to provide guidance documents for understanding general street and block patterns, general lotting patterns for commercial/ light industrial uses, transportation access and traffic elements, stormwater management needs, and service needs for municipal water and sanitary sewer. SECTION 16 MASTER DEVELOPMENT PLANS HKGi prepared three Concepts to demonstrate potential land use and development patterns. Concept A was identified by the City Council as the generally preferred Concept that most accurately reflected the desired potential land uses. For the area north of CSAH 14, the Council expressed the desire to relocate the ball fields further away from the existing residential development to the north, by potentially switching the ball field locations with stormwater management/City Hall locations. The following documentation is attached: 1. Concept A Master Plan and Summary of Land Use. 2. Concept B Master Plan and Summary of Land Use. 3. Concept C Master Plan and Summary of Land Use. SECTION 16 INFRASTRUCTURE PLANS FOCUS Engineering identified the supporting infrastructure needs and plans for the subject parcels, including transportation access locations to Stillwater Boulevard (CSAH14) and Ideal Avenue, municipal watermain connection locations, and a sanitary sewer extension plan assuming connection to the Oakdale sewer system. TRANSPORTATION IMPROVEMENTS Access Management/Intersection Improvements. Site access locations are shown on the Concept Plans and were reviewed with Washington County to verify viable access points from CSAH 14 (Stillwater Boulevard) and CSAH 13 (Ideal Avenue). The construction of left and right turn lanes will be required as part of any development creating an access from CSAH 14 and CSAH 13. Depending upon traffic volume from the proposed developments, traffic control signals may also be required. Subarea 1:  A minimum of 2 access locations should be required as part of any development of this parcel. FOCUS ENGINEERING, inc. Cara Geheren, P.E. 651.300.4261 Jack Griffin, P.E. 651.300.4264 Ryan Stempski, P.E. 651.300.4267 Chad Isakson, P.E. 651.300.4285 PAGE 2 of 3  A single full access will be permitted along CSAH 14 about equal distance between the intersection of CSAH 14 with Ideal Avenue and Iris Avenue. Access spacing requires 1,320 feet along CSAH 14. The recommended location would be directly adjacent to the transmission easement.  A single full access will be permitted along CSAH 13 at 36th Street. This access is being planned and constructed as part of the CSAH 13 (Ideal Avenue) Phase 2 Improvements to be constructed in 2021.  Connection to the Wildflower Subdivision should be required if the adjacent land use is low density residential. Right‐of‐way currently exists within the Wildflower development for this future connection. Subarea 2:  A minimum of 2 access locations should be required as part of any development of this parcel.  A single full access will be permitted along CSAH 14 about equal distance between the intersection of CSAH 14 with Ideal Avenue and Iris Avenue. Access spacing requires 1,320 feet along CSAH 14. The recommended location would be directly adjacent to the transmission easement.  A single full access will be permitted along CSAH 13 at 32nd Street. Subarea 3:  A minimum of 2 access locations is recommended as part of any development of this parcel, however only 1 access may be possible due to various site constraints.  A single full access will be permitted along CSAH 13 at 31st Street.  A secondary access is recommended from CSAH 6 (Stillwater Boulevard) at the southeast corner of the parcel, with the access proposed directly adjacent to the transmission easement (approximately 735 feet from Helmo/Ideal Avenue). To construct this access, right‐of‐way will need to be obtain across the adjacent property to the south. PUBLIC SANITARY SEWER The Concept Plans propose land use strategies that require municipal sanitary sewer. However, the Subarea parcels are not located within the current Municipal Urban Service Area (MUSA) for Lake Elmo and therefore are not planned for sewered development. Furthermore, these parcels are not located near the existing sanitary sewer system or planned MUSA areas. As part of this master development planning process, a sanitary sewer infrastructure plan was developed as shown on the Infrastructure Exhibits. The plan requires the City to amend its 2040 Comprehensive Plan to include Subareas 1‐3 in its MUSA boundaries. The plan further contemplates two sewered options, one connecting to Oakdale either as a permanent connection or interim temporary connection; the second option includes a lift station and forcemain from Subarea 3, along Inwood Avenue to I94 where the sewer would discharge to the Met Council WONE Interceptor. Infrastructure Exhibit B, I‐94 WONE Connection shows the proposed lift station/forcemain plan for a Lake Elmo direct connection to the Met Council interceptor system through the WONE Interceptor at I‐94. Estimated sewer flows were generated from the proposed land use summaries and estimated jobs to be generated (see attached Sewer Flow Estimate Exhibit). Subarea 1:  Sanitary sewer service would be provided as shown on Exhibit A, following Sewer Route B. Sewer Route B is the preferred and ultimate sewer alignment and provides for gravity sewer service to all of Subarea 1 and 2. This route follows the lower topographic areas and allows for a reasonable depth jacking underneath CSAH 14.  Sewer Route A provides a phasing option should development within Subarea 1 need to be initiated along the west side of the parcel along CSAH 13. However, Sewer Route A would need to be constructed in addition to Sewer Route B as Route A does not provide sufficient sewer depths to serve the entire parcel. PAGE 3 of 3 Subarea 2:  Sanitary sewer service would be provided as shown on Exhibit A, Sewer Route A/B. Gravity sanitary sewer would extend from the Oakdale Lift Station located at Helmo Avenue and extend north along CSAH 13 to 32nd Street.  From 32nd Street, the sewer would be routed internal to Subarea 2 as part of the development improvements and would be required to be extended to the south boulevard of CSAH 14 near the location shown on Exhibit A. Subarea 3:  Sanitary sewer service would be provided as shown on Exhibit A, Sewer Route A/B. Gravity sanitary sewer would extend from the Oakdale Lift Station located at Helmo Avenue and extend north along CSAH 13 to the Union Pacific Railroad.  Gravity sanitary sewer service can be provided through this trunk main for a limited area as depicted on the Infrastructure Exhibits.  A new lift station/forcemain will be needed to serve the remaining portions of Subarea 3 as shown on Exhibit B, Oakdale Connection. The forcemain would connect the trunk sanitary sewer at 31st Street and CSAH 13. Budgetary Costs  High level preliminary cost estimates were prepared for the various sanitary sewer options, alignments and segments. These costs are prepared to provide context for the anticipated development costs to amend the Comprehensive Plan to revise its MUSA boundaries. Further cost development will be required as the land use planning and development efforts evolve.  Subarea 1‐3 Cost Estimates are presented on the enclosed attachments, assuming connection to the Oakdale sanitary sewer system. Costs do not include any work that may be required to revise or improve any component of the Oakdale sewer system including the lift station located at Helmo and CSAH 13.  The Total Estimated Preliminary Costs for the Lift Station/Forcemain to I94 WONE Interceptor is $6.8 M. PUBLIC WATER SUPPLY Municipal water supply is available immediately adjacent to all three Subarea parcels. As part of any development project the developer will be required to connect to the existing city trunk watermain and extend water into and throughout the development site. The potential and likely water connection points are depicted on the Concept Plans and Infrastructure Exhibits and include two connection points for each Subarea. The watermain distribution lines will need to be looped within each Subarea wherever reasonably feasible, and watermain stubs will be required to the adjacent properties to allow for the continued extension of the watermain system. STORMWATER MANAGEMENT All three Subareas are located within the jurisdiction of the Valley Branch Watershed District (VBWD). Any new development within these areas will therefore be subject to storm water management meeting VBWD and City rules. Each Concept Plan accounts for storm water management and depicts potential locations based on the general site topography. Between 10‐15% of the developable areas will need to be reserved for stormwater management. As part of the CSAH‐13 Phase 2 Improvements, Washington County is currently proposing a storm water basin for the County project to be located on the northwest corner of Subarea 1. This basin is not shown on the Concept Plans or accounted for in the land use summaries. Also, due to the general topography, Subarea 1 is likely to be bisected through the middle of the parcel to accommodate storm water flow from the west to east side of the parcel. LAKE ELMO SECTION 16 DEVELOPMENT MASTER PLAN - CONCEPT A MAY 8, 2020 CONCEPT A LAND USE ACRES Industrial / Business Park 70.75 Commercial 7.50 City Hall / Public Work 9.00 Low Density Residential 24.25 Community Park 17.75 Open Space 30 Stormwater 20.00 TOTAL 179.25 200’0’400’800’1200’N CITY OF LAKE ELMO SECTION 16 MASTER DEVELOPMENT PLAN Project No. 2019.130 Land Use Acres F.A.R. Jobs/S.F. Housing Units Community Park 17.75 Industrial / Business Park 22 287,500 719 Commercial 7.5 65,300 261 City Hall / Public Works 9 Low Density Residential 24.25 72.75 Open Space 9.75 Stormwater 12.5 Industrial / Business Park 33.75 441,000 1,764 Open Space 15.75 Stormwater 5.25 Industrial / Business Park 15 196,000 784 Open Space 4.5 Stormwater 2.25 924,500 3267 65,300 261 73 ASSUMPTIONS F.A.R. Jobs/S.F. Housing Units Industrial / Business Park 0.3 400 ‐ Commercial 0.2 250 ‐ Single Family Residential ‐ ‐ 3 CONCEPT A SUMMARY ACRES Community Park 17.75 Industrial / Business Park 70.75 Commercial 7.50 City Hall / Public Works 9.00 Low Density Residential 24.25 Open Space 30.00 Stormwater 20.00 TOTALS 179.25 Area 1 Area 2 Area 3 ASSUMPTIONS CONCEPT A Industrial / Business Park Totals: Commercial Totals: Residential Unit Totals: LAKE ELMO SECTION 16 DEVELOPMENT MASTER PLAN - CONCEPT B MAY 8, 2020 200’0’400’800’1200’N CONCEPT B LAND USE ACRES Industrial / Business Park 98.00 Commercial - City Hall / Public Work 11.00 Low Density Residential - Community Park 16.25 Open Space 30.5 Stormwater 23.5 TOTAL 179.25 Stormwater0.25 Acres Stormwater0.25 Acres CITY OF LAKE ELMO SECTION 16 MASTER DEVELOPMENT PLAN Project No. 2019.130 Land Use Acres F.A.R. Jobs/S.F. Housing Units Community Park Industrial / Business Park 64.25 839,600 2,099 Commercial City Hall / Public Works 11 Single Family Residential Open Space 12 Stormwater 15.5 Industrial / Business Park 33.75 441,000 1,103 Open Space 15.75 Stormwater 5.25 Community Park 16.25 Open Space 2.75 Stormwater 2.75 1,280,600 3202 0 0 ASSUMPTIONS F.A.R. Jobs/S.F. Housing Units Industrial / Business Park 0.3 400 ‐ Commercial 0.2 250 ‐ Single Family Residential ‐ ‐ 3 CONCEPT B SUMMARY ACRES Community Park 16.25 Industrial / Business Park 98.00 Commercial 0.00 City Hall / Public Works 11.00 Low Density Residential 0.00 Open Space 30.50 Stormwater 23.50 TOTALS 179.25 Area 1 Area 2 Area 3 ASSUMPTIONS CONCEPT B Industrial / Business Park Totals: Commercial Totals: Residential Unit Totals: LAKE ELMO SECTION 16 DEVELOPMENT MASTER PLAN - CONCEPT C MAY 8, 2020 200’0’400’800’1200’N CONCEPT C LAND USE ACRES Industrial / Business Park 71.00 Commercial 9.75 City Hall / Public Work 11.25 Low Density Residential 14.00 Community Park 22.50 Open Space 31.5 Stormwater 19.25 TOTAL 179.25 Stormwater0.25 Acres CITY OF LAKE ELMO SECTION 16 MASTER DEVELOPMENT PLAN Project No. 2019.130 Land Use Acres F.A.R. Jobs/S.F. Housing Units Community Park 22.5 Industrial / Business Park 38.5 503,100 1,258 Commercial 9.75 84,900 340 City Hall / Public Works 11.25 Single Family Residential Open Space 9.25 Stormwater 11.5 Industrial / Business Park 32.5 424,700 1,062 Open Space 17 Stormwater 5.25 Low Density Residential 14 42 Open Space 5.25 Stormwater 2.5 927,800 2320 84,900 340 42 ASSUMPTIONS F.A.R. Jobs/S.F. Housing Units Industrial / Business Park 0.3 400 ‐ Commercial 0.2 250 ‐ Single Family Residential ‐ ‐ 3 CONCEPT C SUMMARY ACRES Community Park 22.50 Industrial / Business Park 71.00 Commercial 9.75 City Hall / Public Works 11.25 Low Density Residential 14.00 Open Space 31.50 Stormwater 19.25 TOTALS 179.25 ASSUMPTIONS CONCEPT C Area 1 Area 2 Area 3 Industrial / Business Park Totals: Commercial Totals: Residential Unit Totals: LAKE ELMO SECTION 16 DEVELOPMENT MASTER PLAN - INFRASTRUCTURE EXHIBIT A MAY 8, 2020 200’0’400’800’1200’N Power line Easement Pipe line Easement Power line Easement Existing Water Tower Existing Water Main Proposed Water Connection/Stub Gravity Sewer (Private Development) Trunk Gravity Sewer Alignment - Route A (Alternate Subarea 1 Phasing) Gravity Sewer (Private Development) Trunk Gravity Sewer Alignment - Route B(Service to Subarea 1-3) Existing Lift Station (Oakdale) Future Development Area LAKE ELMO SECTION 16 DEVELOPMENT MASTER PLAN - INFRASTRUCTURE EXHIBIT B MAY 8, 2020 80’0’160’320’640’N 80’0’160’320’640’N SUBAREA 3 SEWER PLAN FOR OAKDALE CONNECTION SUBAREA 3 SEWER PLAN FOR I-94 WONE CONNECTION Future Sewer Force Main Existing Water Tower Existing Water Main Proposed Water Connection/Stub Gravity Sewer (Private Development) Trunk Gravity Sewer Alignment - Route A (Alternate Subarea 1 Phasing) Gravity Sewer (Private Development) Trunk Gravity Sewer Alignment - Route B(Service to Subarea 1-3) Existing Lift Station (Oakdale) Future Lift Station Future Development Area Future Sewer Force Main Existing Water Tower Existing Water Main Proposed Water Connection/Stub Gravity Sewer (Private Development) Trunk Gravity Sewer Alignment - Route A (Alternate Subarea 1 Phasing) Gravity Sewer (Private Development) Trunk Gravity Sewer Alignment - Route B(Service to Subarea 1-3) Existing Lift Station (Oakdale) Future Lift Station Future Development Area SECTION 16 DEVELOPMENT MASTER PLANCITY OF LAKE ELMO, MINNESOTAFOCUS PROJECT NO. 2019.130SUMMARY OF BUGETARTY COSTS ‐ PUBLIC SANITARY SEWER TO SUBAREAS 1‐3DATE: MAY, 2020ROUTE B: OAKDALE LIFT STATION TO SUBAREA 1‐3TOTAL ESTIMATED COST: $1,295,000.00Pros: Preferred sewer alignment for gravity service to Subarea 1Cons: Phasing requirements: Subarea 2 needs to develop to serve Subarea 1TOTAL COSTS ‐INTERNAL SUBAREA 2: $610,000.00Internal Subarea 2 costs by developer improvementsCITY OVERSIZE COSTS ‐INTERNAL SUBAREA 2: $87,000.00City oversize contribution to developer improvementsNET TOTAL ESTIMATED COST: $772,000.00TBD: City Project or Developer ProjectROUTE A: SECONDARY/ALTERNATIVE SUBAREA 3 PHASING PLANTOTAL ESTIMATED COST: $498,000.00Pros: Allows for southwest Subarea 1 development prior to Subarea 2Cons: Cost is in addition to Route B SECTION 16 DEVELOPMENT MASTER PLAN CITY OF LAKE ELMO, MINNESOTA FOCUS PROJECT NO. 2019.130 SUMMARY OF BUGETARTY COSTS ‐ PUBLIC SANITARY SEWER TO SUBAREAS 1‐3 DATE: MAY, 2020 ROUTE A & B: SEGMENTS 1‐7 Oakdale Lift Station to Subareas 2 and 3 Total Estimated Cost: $556,000.00 Includes Roadway Crossing at Helmo and Stillwater Blvd Total Linear Feet: 1,600.00 Includes UPRR Crossing Cost per linear foot: $348.00 Assumes no roadway disturbance/restoration ROUTE B: SEGMENTS 8‐9 Preferred Sewer Alignment to Subarea 1 (through Subarea 2) Total Estimated Cost: $610,000.00 Includes Roadway Crossing at CSAH 14 Total Linear Feet: 2,720.00 Developer Cost vs. City Sewer Oversizing Costs Cost per linear foot: $225.00 City Oversize Cost: $87,000.00 ROUTE B: SEGMENT 10 Preferred Sewer Alignment to Subarea 1 Total Estimated Cost: $129,000.00 Includes Roadway Crossing at CSAH 14 Total Linear Feet: 250.00 Cost per linear foot: $516.00 ROUTE A: SEGMENTS 8‐10 Secondary/Alternative Subarea 1 Phasing Plan Total Estimated Cost: $498,000.00 Service to southwest Subarea 1 only Total Linear Feet: 1,452.00 Includes Roadway Crossing at CSAH 14 Cost per linear foot: $343.00 CITY OF LAKE ELMO SECTION 16 MASTER DEVELOPMENT PLAN Project No. 2019.130 SECTION 16 MASTER DEVELOPMENT PLAN ‐ SANITARY SEWER FLOW ESTIMATES ESTIMATING METHOD #1 CONCEPT 1 # OF JOBS EQ. RECs HOUSE UNITS TOTAL RECs EST. SEWER FLOWS (gpd) Subarea 1 980 98 73 171 46,784 Subarea 2 1,764 176 0 176 48,334 Subarea 3 784 78 0 78 21,482 TOTALS 3,528 353 73 426 120,000 274 GPCD PEAK FLOW (GPM)300 4.0 PEAK HOUR SECTION 16 MASTER DEVELOPMENT PLAN ‐ SANITARY SEWER FLOW ESTIMATES ESTIMATING METHOD #2 CONCEPT 1 ACRES NET ACRES EST. SEWER FLOWS (gpd) Subarea 1 102.75 74.00 65,120 Subarea 2 54.75 30.75 27,060 Subarea 3 21.75 13.75 12,100 TOTALS 179.25 118.50 104,000 880 G/ACRE INDUSTRIAL PEAK FLOW (GPM)300 4.0 PEAK HOUR COUNCIL MEMORANDUM To: Honorable Mayor and City Council From: Brian Bachmeier, Public Works Director/City Engineer Date: April 14, 2020 Subject: Sewer Service Request from Lake Elmo Background Last fall, the City of Lake Elmo became the owner of 180 acres of property east of Ideal Avenue and north/south of CSAH 14. The property was previously owned by 3M and was zoned rural residential. Lake Elmo is evaluating three options to change the future land use to a combination of industrial, commercial, residential, and open space. The City of Lake Elmo submitted a letter requesting if Oakdale has the ability to serves this area with sanitary sewer service (letter attached). It is appropriate for the Oakdale City Council to consider that request. Lake Elmo Concepts 2 Municipal Sanitary Sewer Service Needed to Serve the Area This change in land use requires municipal water and sanitary sewer service. Lake Elmo has the ability to provide water to this area, however this area is more than three miles away from their existing downtown sanitary sewer system. Oakdale has an existing sanitary sewer system south of CSAH 14, which includes a lift station at the intersection of Ideal Avenue and Stillwater Boulevard. The City of Lake Elmo is therefore requesting the feasibility of Oakdale providing sanitary sewer service to the 180 acres being developed in Lake Elmo. 3 The projected sanitary sewer flows from the three concept plans range from 280 to 305 gallons per minute. According to our 2040 Comprehensive Sanitary Sewer Plan, there is approximately 50 gallons/minute of reserve capacity in the existing lift station beyond what is needed to serve the existing and full development of vacant land in the service area (Oakdale Market Place, and Crestview Farms). The capacity of the lift station would have to be increased to serve the Lake Elmo area. This lift station needs rehabilitation due to age/condition. It also needs to be relocated as it is too close to the Ideal/Stillwater intersection and will interfere with any traffic control changes that may be needed at the intersection (signals, or a roundabout). It is in our C IP for 2021. This would be an opportunity for a joint project between Oakdale and Lake Elmo. Staff Comments If the Council is supportive of providing service to this area it is suggested that Lake Elmo: • Cover the cost of a specific study to confirm the impacts and capacity of the Oakdale sewer system. • Cover the cost of a rate study to determine a utility rate that covers the cost of operating, depreciating, and a reasonable rate of return on investment. • Agree to participate in the cost to reconstruct/relocate the lift station prorated based on projected flows. The Council may also want to consider: • Compatibility of proposed land uses on the border. • Agreement and participation in Washington County’s CSAH 13 (Ideal Avenue) Phase 2 project.