HomeMy WebLinkAbout5.A.2. Comprehensive Plan Amendment to Guide Raceway Park Property for Industrial Use-Res. No. 7295 itrAl Consent Business 5. A. 2.
SHAKO'E,F;
TO: Mayor and City Council
Mark McNeill, City Administrator
FROM: Mark Noble, Planner II
DATE: 04/16/2013
SUBJECT: Comprehensive Plan Amendment to Guide Raceway Park Property for Industrial Use - Res. No. 7295
(B)
Action Sought
Approve a Comprehensive Plan Amendment to guide property known as Raceway Park for Industrial Use.
Introduction
Recovery Technology Solutions made application for a Comprehensive Plan Amendment to guide property for
industrial use. The subject property includes Raceway Park (located on the south side of Highway 101, west of
Bituminous Roadways and east of Titan Machinery). Attached are the applicant's narrative and concept plan for
this proposal (Exhibits B and C), for which they will utilize the easterly 10 acres of the approximately 20 acre
parcel. The nature of the operation is a manufacturing facility to recover asphalt oil from asphalt -based roofing
materials, with the process resulting in reuse of the products by a number of different industries, and the diverting
of a substantial amount of roofing materials from landfills.
The applicant intends to construct several buildings and tanks as part of their operation, and will include an exterior
storage area for material (see Exhibits B & C). Should this request be approved, a Minor Subdivision, Conditional
Use Permit, and building permits will need to be submitted and approved.
Findings
The criteria required for the granting of a Comprehensive Plan Amendment are listed below with proposed findings
for the Commission's consideration.
Criteria #1 That the original Zoning Ordinance is in error;
Finding #1 The original zoning ordinance is not in error. The property is zoned Heavy Industrial (1 -2) Zone, for
which the proposed business is a listed Conditional Use. The present use is a legal non - conforming use and is not
consistent with the current zoning. The existing zoning is compatible with several existing uses in this area and
provides for an opportunity to utilize the site for industrial activities, provided the comprehensive plan is amended
to be consistent with the zoning.
Criteria #2 That significant changes in community goals and policies have taken place;
Finding #2 Significant changes in community goals and policies that concern this property have taken place, as
there is a perception that this property would be better suited for industrial use than commercial development, the
demand is greater for industrial use in this vicinity, and with the current city code guidelines that shape
development and design performance standards, an industrial development could occur that could generally fit in
with the adjacent properties.
Criteria #3 That significant changes in City -wide or neighborhood development patterns have occurred;
or
Finding #3 Significant changes in development patterns have occurred for the subject property. Adjacent uses
include two heavy industrial developments (Bituminous Roadways and the Blue Lake Wastewater Treatment
Facility).
Criteria #4 That the comprehensive plan requires a different provision.
Finding #4 The Comprehensive Plan, as adopted by the Shakopee City Council, guides this property for
recreation use. The applicant is requesting an amendment of the Comprehensive Plan for industrial use of this
site.
Planning Commission Recommendation
The Planning Commission reviewed this request at its April 4, 2013 meeting, and recommended approval of the
Comprehensive Plan Amendment to the City Council by a 5 -0 vote. A copy of the staff reports to the Planning
Commission are attached for the Council's information.
Alternatives
1. Approve Resolution No. 7295, approval of a request to amend the Comprehensive Plan to guide this
property for Industrial use.
2. Do not approve Resolution No. 7295, a request to amend the Comprehensive Plan to guide this property for
Industrial use.
3. Offer a motion to table and request additional information from the applicant and /or staff.
Action Requested
Offer Resolution No. 7295, A Resolution of the City of Shakopee Approving a Request to Amend the
Comprehensive Plan to Guide Property for Industrial Use, and move its adoption.
Mark Noble
Planner II
Attachments: comp plan resolution
PC report
applicant narrative
conceptual site plan
RESOLUTION NO. 7295
A RESOLUTION OF THE CITY OF SHAKOPEE APPROVING A REQUEST TO AMEND
THE COMPREHENSIVE PLAN TO GUIDE PROPERTY FOR INDUSTRIAL USE
WHEREAS, Recovery Technology Solutions, applicant, and JCH Properties of MN, LLC,
property owner, have requested the reguiding to allow industrial use of the property; and
WHEREAS, the subject property is legally described as:
That part of the southwest quarter of Section 2, Township 115 North, Range 22 West, lying south of
Highway 101 and North of the Railroad, except the easterly 100 feet, except the easterly 20 acres
lying west of the eastlery 100 feet and except the westerly 13.87 acres; and
WHEREAS, notices were duly sent and posted, and a public hearing was held before the
Planning Commission on April 4 2013, at which time all persons present were given an
opportunity to be heard; and
WHEREAS, the City Council heard the matter at its meeting on April 16, 2013; and
NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Shakopee
hereby adopts the following findings of facts relative to the above -named request:
Finding #1 The original zoning ordinance is not in error. The property is zoned Heavy Industrial
(I -2) Zone, for which the proposed business is a listed Conditional Use. The present
use is a legal non - conforming use and is not consistent with the current zoning. The
existing zoning is compatible with several existing uses in this area and provides for
an opportunity to utilize the site for industrial activities, provided the comprehensive
plan is amended to be consistent with the zoning.
Finding #2 Significant changes in community goals and policies that concern this property have
taken place, as there is a perception that this property would be better suited for
industrial use than commercial development, the demand is greater for industrial use
in this vicinity, and with the current city code guidelines that shape development and
design performance standards, an industrial development could occur that could
generally fit in with the adjacent properties.
Finding #3 Significant changes in development patterns have occurred for the subject property.
Adjacent uses include two heavy industrial developments (Bituminous Roadways
and the Blue Lake Wastewater Treatment Facility).
Finding #4 The Comprehensive Plan, as adopted by the Shakopee City Council, guides this
property for recreation use. The applicant is requesting an amendment of the
Comprehensive Plan for industrial use of this site.
1
GOAL #1
Growth and expansion of that portion of Shakopee served by public services shall be controlled and
focused to maintain the City's fiscal soundness consistent with other community -wide goals.
This area is presently served by public services and extension of services to this particular parcel
shall be controlled consistent with City policies.
GOAL #2
Any future annexation shall be undertaken in an orderly, fiscally sound manner. Property in
annexed areas shall be treated fairly relative to taxes and the provision of service.
The property is already within the city limits, and development of this land shall be treated fairly
relative to taxes and the provision of services.
BE IT FURTHER RESOLVED, that the request to amend the Comprehensive Plan by
reguiding to allow industrial use of the property is hereby approved.
Adopted in adj. regular session of the City Council of the City of Shakopee, Minnesota held
this day of , 2013.
Mayor of the City of Shakopee
Attest: ,
Julie Linnihan, City Clerk
2
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CITY OF SHAKOPEE
Memorandum
CASE NO.: 13 -010
TO: Shakopee Planning Commission
FROM: Mark Noble, Planner II
SUBJECT: Comprehensive Plan Amendment to Guide Property for Industrial Use
MEETING DATE: April 4, 2013
REVIEW PERIOD: February 22, 2013 — June 21, 2013
SITE INFORMATION
Applicant: Recovery Technology Solutions
Property Owner: JCH Properties of Minnesota, LLC
Location: 6528 County Road 101 East
Current Zoning: Heavy Industry (I -2) Zone
Adjacent Zoning: North: Heavy Industry (I -2) Zone /Agricultural Preservation (AG) Zone
South: Heavy Industry (I -2) Zone
East: Heavy Industry (I -2) Zone
West: Heavy Industry (I -2) Zone
Comp. Plan: Commercial
Lot Size: 19.65 Acres
Attachments: Exhibit A: Site Location /Zoning
Exhibit B: Applicant Narrative
Exhibit C: Concept Plan
Exhibit D: Shakopee Fire Dept. Memorandum
Exhibit E: SPUC Memorandum
Exhibit F: Scott County Environmental Health Memorandum
INTRODUCTION
Recovery Technology Solutions made application for a Comprehensive Plan Amendment to guide
property for industrial use. The subject property includes Raceway Park (located on the south side
of Highway 101, west of Bituminous Roadways and east of Titan Machinery). Attached are the
applicant's narrative and concept plan for this proposal (Exhibits B and C), for which they will
utilize the easterly 10 acres of the approximately 20 acre parcel. The nature of the operation is a
manufacturing facility to recover asphalt oil from asphalt -based roofing materials, with the process
resulting in reuse of the products by a number of different industries, and the diverting of a
substantial amount of roofing materials from landfills.
The applicant intends to construct several buildings and tanks as part of their operation, and will
include an exterior storage area for material (see Exhibits B & C). Should this request be approved,
1
a Minor Subdivision, Conditional Use Permit, and building permits will need to be submitted and
approved.
Planning staff did receive comments from several reviewing agencies. The City Administrator
referenced whether there could be concerns with odor, noise emissions and outdoor storage of
materials. Planning staff stipulates that if this application is approved, the applicant will provide
more details of their operation in their CUP application; at which time staff will include conditions
that address these concerns.
Xcel Energy provided comments regarding services to the site. The applicant, Planning staff and
Xcel Energy staff have been in discussion on this matter, and this item will be addressed in more
detail at time of CUP review, when a site specific building layout is submitted for review.
Staff has also received memorandums from the City Fire Marshal /Inspector, SPUC, and Scott
County Environmental Health, which are attached to this report. The applicant has been made
aware of the comments in the memorandums, and will factor them into their site development plans
at time of CUP application submittal.
Scott County Engineering commented that the applicant will need to provide details regarding trip
traffic /traffic management at time of CUP submittal.
By definition, based on the location, the Heavy Industrial type use appears to be an appropriate fit,
with Bituminous Roadways adjacent to the east, and the Blue Lake Wastewater Treatment Facility
across the street. The Planning Dept. recommends that the Commission discuss whether this
property should be considered for a Comprehensive Plan Amendment, or whether they believe the
current Comprehensive Plan guiding is appropriate. If they believe that the existing guidelines are
appropriate or the application request is appropriate, they should forward the appropriate
recommendation to the City Council for their action.
FINDINGS
The criteria required for the granting of a Comprehensive Plan Amendment are listed below with
proposed findings for the Commission's consideration.
Criteria #1 That the original Zoning Ordinance is in error;
Finding #1 The original zoning ordinance is not in error. The property is zoned Heavy Industrial
(I -2) Zone, for which the proposed business is a listed Conditional. Use. The present
use is a legal non - conforming use and is not consistent with the current zoning. The
existing zoning is compatible with several existing uses in this area and provides for
an opportunity to utilize the site for industrial activities, provided the comprehensive
plan is amended to be consistent with the zoning.
Criteria #2 That significant changes in community goals and policies have taken place;
Finding #2 Significant changes in community goals and policies that concern this property have
taken place, as there is a perception that this property would be better suited for
industrial use than commercial development, the demand is greater for industrial use
in this vicinity, and with the current city code guidelines that shape development and
design performance standards, an industrial development could occur that could
generally fit in with the adjacent properties.
Criteria #3 That significant changes in City -vide or neighborhood development patterns
have occurred; or
Finding #3 Significant changes in development patterns have occurred for the subject property.
Adjacent uses include two heavy industrial developments (Bituminous Roadways
and the Blue Lake Wastewater Treatment Facility).
Criteria #4 That the comprehensive plan requires a different provision.
Finding #4 The Comprehensive Plan, as adopted by the Shakopee City Council, guides this
property for recreation use. The applicant is requesting an amendment of the
Comprehensive Plan for industrial use of this site.
STAFF RECOMMENDATION
After evaluating the request against the stated criteria for reguiding, staff recommends that the
Commission approve this request as the criteria for granting a change have been met.
ALTIERNATIVES
1. Offer a motion to recommend to the City Council the approval of the request to amend the
Comprehensive Plan to guide this property for Industrial use.
2. Offer a motion to recommend to the City Council that the Comprehensive Plan not be
amended to guide this property for Industrial use.
3. Offer a motion to continue the public hearing and request additional information from the
applicant.
4. Dose the public hearing, and offer a motion to table and request :additional information from
the applicant and /or staff.
ACTION REQUESTED
Offer a motion to recommend to the City Council the approval of the request to amend the
Comprehensive Plan to guide this property for Industrial use, and move its approval.
s
Mark Noble
Planner II
H: \T3OAA- PC2013 \04-04 \13- 010_comp plan its.doc
Question 21— description of proposed facility
Recovery Technology Solutions ( "RTS ") is proposing the construction of a new $20 million
manufacturing facility in Shakopee, Minnesota to recover asphalt oil from asphalt -based roofing
materials. Materials include asphalt shingles and various oil -based flat - roofing materials. In the
process, shingles and flat -roof materials are broken down into their basic components (asphalt
oil, mineral granules, sand, and fiberglass) through an extraction and separation process. The
separated products will be sold back into the shingle manufacturing, paving and construction
industries. RTS' process will divert over 70,000 tons of roofing .materials from landfills each
year.
The proposed RTS Shakopee facility will create 20 -22 new jobs with an annual payroll of $1.3
million. This state of the art facility will serve as RTS' flagship facility and will be the training
center for future employees as RTS intends to implement as many as 50 such facility across
North America. The Shakopee facility will also host numerous visits from industry and
governmental officials interested in RTS' technology. RTS will centralize its corporate
management team and functions, and intends to establish a separate corporate headquarters in
Shakopee as well.
RTS is through its detailed design process and will operate its facility with minimal impact to its
neighbors. The main plant operations will be indoors and will utilize computer - controlled
technology. The proposed site is zoned heavy industrial and is adjacent to hot -mix. asphalt plant;
thus our process fits in with the current land use.
The proposed facility is to be constructed on the eastern ten (10) acres of the existing 19.65 acre
parcel. Attached is a generic rendering of the proposed facility and a generic facility site plan.
1
Otnest on 22 -- Criteria satisfaction
A comprehensive plan amendment for the property is requested to continue the existing zoning
(Heavy Industrial) rather than a change to commercial zoning as shown in the current
comprehensive plan.
The proposed manufacturing facility use on the property is not injurious to use or enjoyment of
other properties in the area — highway to the north, railroad to the south, aggregate pit/asphalt
plant to the east, and remainder of auto racetrack facility to the west — nor substantially diminish
or impair property values in the immediate vicinity.
There is no vacant property adjacent to the site and the proposed use will not impede the
redevelopment of the remainder of the auto racetrack facility to the west.
Adequate roads presently serve the site. Utility, drainage and other facility improvements will be
provided as part of the proposed manufacturing facility development.
The proposed use is consistent with present zoning for the property and the requested
comprehensive plan amendment would continue the existing zoning for the site.
City of Shakopee - Shakopee Fire Department
Staff Review
Case Number: 13010
From: Tom Pitschneider, Fire Marshal /Inspector
Date: 03/14/2013
Request: Comp .Plan Amendment
Staff Recommendation: Approve with Changes /Conditions Listed
Project Conditions
1. If applicable the applicant shall obtain a hazardous material generator license from
Scott County.
2. Applicant shall apply for a building permit with the City of Shakopee. This submittal
shall include a list of any hazardous materials and quantities to be used or stored at
the location and details what types of powered equipment will be utilized in the
buildings and their fuel supply type. (gas, gas /ethanol, diesel, compressed natural gas,
Liquefied natural gas, hydrogen, propane, hybrid or electric)
3. Applicant shall comply with appropriate Minnesota State Fire Code regulations that
relate to their operation.
4. Flammable /combustible liquid storage tanks shall comply with applicable codes and
shall be fisted. Separate permits are required for storage tank installations.
5. Minnesota State Building Code Chapter 1306 applies to new structures, additions to
existing structures and structures requiring a change of use as defined by the
Minnesota State Building Code.
Proiect Comments
1. • Proposed use includes several occupancy groups including: Group B (Business),
Group F (Factory) and Group S (Storage). (MSFC Chapter 2)
2. Water main and hydrant placement shall be based on Shakopee Public Utilities
requirements.
3. Fire apparatus access roads shall be provided in accordance with Minnesota Uniform
Fire Code Section 902.
•
4. Subject property is not within insurance Service Office (ISO) requirements for fire
department engine company coverage based on current or future fire station
placement. Requirements for ISO are an engine company within 1.5 miles.
5. Subject property is not within insurance Service Office (ISO) requirements for fire
department ladder company coverage based on current or future fire station
placement. Requirements for ISO are a ladder company within 2.5 miles.
•
Mar, 19. 2013 3:21PM No. 5047 P. 5
•
S A OP E PUBLIC UTILITIES COMMISSION
"Lighting the Way.- Yesterday, Today and Beyond"
MEMORANDUM
TO: Shakopee Community Development Department
PROM: Joseph D. Adams, Planning and Engineering Direct() •. '.
..!
SUBJECT: STAFF REVIEW RECORD COMMENTS for:
Comp Plan Amendment reguiding Commercial to Industrial for RTS
CASE NO: 13010
DATE: 3/19/13
COMMENTS:
Municipal water service is available subject to our standard terms and conditions. These
include, but are not limited to: installing a lateral water main distribution system in
accordance with utility policy, paying the associated inspections costs, granting any
necessary easements, paying the Trunk Water Charge, and paying the Water Connection
Charge.
Applicant should contact Shakopee Public Utilities directly for specific requirements
relating to their project.
Note:
1. Site not in SPUC's electric service territory (Xce1 Energy).
2. Current Water Connection Charge rate: $4,504.00 per equivalent
SAC unit, ± 10.6 cents per sq. ft. for industrial use only.
Post Office Box 470 . 255 Sarazin Street ® Shakopee, Minnesota 55379 -0470
(952) 445 -1988 ® Fax (952) 445 -7767
www. s hakopeeuti liti_ es . c om
:., SCOTT COUNTY
•
COMMUNITY DEVELOPMENT DIVISION
. ENVIRONMENTAL HEALTH DEPARTMENT
GOVERNMENT CENTER
200 FOURTH AVENUE WEST
SHAKOPEE, MN 55379 -1220
MEMORANDUM
TO: Mark Nobel, Project Manager
FROM: Steve L. Steuber, Environmentalist it
DATE: March 20, 2013
SUBJECT: Comp Plan Amendment regarding commercial to industrial
PID# 27- 902021 -0
i l
Thank you for the opportunity to review the proposed Comp Plan Amendment regarding
commercial to industrial for Recovery Technology Solutions (RTS).
In reviewing the application for RTS, there are five stacks listed on the site plan for this
facility. There is not any information about what type of emissions might be expected from
this type of operation. ! suggest that the City of Shakopee consult with the Air Quality
Division of the MPCA in order to develop a long -range plan for assessing and monitoring air
emissions from this facility.
The business shall comply with the Scott County Hazardous Waste Management Ordinance
and the Solid Waste Management Ordinance: therefore they will need to obtain any
applicable licenses and manage all wastes in accordance with applicable federal, state and
county regulations.
Depending on the scope of the project, this business may require an Environmental Review
before proceeding with any specific development proposal according to the Environmental
Quality Board (EQB): Minnesota Rules, Chapter 4410.
And finally there seems to be some confusion on whether the current business is connected
to city sewer. We recommend that a requirement for this business is that they connect to city
sewer.
rts
RECOVERY TECHNOLOGY SOLUTIONS
SHAKOPEE PROJECT OVERVIEW
April 4, 2013
1
RTS Background
rt Recovery
Technology
Solutions
RTS identified Shakopee site for its recovery business in January 2013
The Shakopee site is ideal for RTS' process as it offers logistics, supplier,
customer and labor benefits
RTS' business model redirects waste tear -off shingles and roofing materials
from landfills
RTS' recovered asphalt oil and solids will be reused in the shingle manufacturing
and paving industries
RTS will use patented technology developed by Crown Iron Works, a Minneapolis
based process engineering firm
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2
RTS Staff Overview
RTS Corporate Headquarters
RTS will relocate its corporate office to Shakopee
Close proximity to future recovery facility site
Corporate support such as HR, Engineering, Finance, and Marketing will be
managed at the corporate headquarters
Anticipate addition of 30 employees over the next 3 years as RTS constructs 40
to 50 facilities across North America
RTS Recovery Facility Staffing Plan
RTS will create 20 -22 new full -time jobs at its proposed recovery facility
Annual Salaries
Plant Personnel # & Wages
Plant Manager 1 $ 100.000
Office Administrator' 1 35,000
Maintenance Technician 1 80,000
Lab Technician 1 50,000
Plant Operators 16 660,000
Total Salaries & Wages 20 $ 925,000
Total Benefits and Taxes $ 400,000
Total Annual Payroll $ 1,325.000
Average Operators Hourly Wage $19.83 its
3
RTS Investment
Construction Costs
RTS will invest approximately $20 million in the Shakopee facility
(Dollars in millions)
Process Equipment $ 6.3
Construction Costs 9.7
Working Capital & Land 1.0
Start -up Costs 1.5
Contingency 1.5
Total $ 20.0
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Shakopee Project
Y The '10 acre Shakopee, MN site is corcasn a:,o, Park rears a„ao.� (r'Ma ,
located approximately 20 miles from Grove i;:►
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Minneapolis m.o.. Ho,'^^*, c,,, w , Y!, >l2
Canals rs)�
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The Shakopee site provides RTS with vs e ,,, r %
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the following benefits: �`*"" StLc,�s
t k St Paul uu:4,r„oca - -
. Located near Crown's 1.,4.H,,,,..0,4 itooaow
headquarters; allowing easy c , .4 %ides <-,a.
access to technical support 0
t ., r,<.., - *
Close proximity to suppliers of »,,E
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feedstock
Shakopee Site F agan . •
. Close proximity to cus tomers of ' , a p rt *.
P Y Q F3utnsY„ie , . : ., ,. anAr *a ■
recovered oil and solids
A.pp,e tey Pose- ,...,t Hastrogs
• Access to strong /growing labor 1>rnr l ate
market '" /
. Access to required utilities .� . •
. Major highway access with rail /\ Landfill
potential ® Transfer Station
O Shingle Manufacturer
Construction anticipated to begin in 0 Oil Refinery
03 2013 IN HMA Producer
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RTS Facility
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Technology Overview
Crown Iron Works Company ( "Crown ") is the global leader in solids -to- liquid extraction
technologies
The Crown asphalt extraction technology was originally developed in the 1970's and an
extraction facility ran during that time at a 75 tons per day ( "tpd ") rate
RTS has exclusive use of the technology in North America
Crown extraction technology operating in 400+ facilities worldwide
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RTS Operations
P State of the art, computer - controlled technology
r Fire protection; foam system and fire hydrants
✓ 20 -24 trucks per day; 7am -5pm / 5 -6 days per week
P Noise well below allowable limits; studies conducted by third party
✓ No odors detected from plant; studies conducted by third party
r Regulated by Part 70 Air Permit, below Environmental Quality Board thresholds
r Outdoor storage will not be visible; enclosed by privacy fence
P High wattage outdoor lighting not necessary, all plant operations indoors
P Experienced management team with a combined 70 years of operational experience
No lost -time accidents
No environmental violations
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8
RTS Management Team
y Strong management team with significant experience in business development; including
permitting, financing, construction and operations
Experience in building multi - million dollar renewable energy projects under budget and ahead of
schedule
Tom Branhan Andrew Czech Dan Wattenhofe ll Ron Harnack
CEO & President VP of Business Development Controller Plant Manager
• 30 years experience in •15 years experience in business •22 years experience in •9 years experience in plant
constructing, operating and development, finance and accounting, finance, treasury, management, plant start -up,
growing large renewable energy operations in both public and project management and IT in process safety management,
and chemical plant businesses private company settings the manufacturing, environmental health and
construction and retail safety, and preventative
• Prior CEO and President of •Founder and developer of RTS industries maintenance
Glacial Lakes Energy (8 years), business since the inception of
a 325mmgy operation the company •Worked with Founders of RTS •Prior Production & Maintenance
to analyze the business in its Manager at NEDAK Ethanol
• Management experience in •Prior Director of Finance and early stages
multi -site operations, sales, Business Development of Global •Columbia Pacific Bio- Refinery
marketing, capital expenditure, Ethanol, a management •Prior Corporate Controller of
project management, company operating 160mmgy RTI Remmele Engineering, a •Poet Energy Start -up Specialist
production and fiscal manufacturing and engineering directing 7 plant start -ups and
management •Piper Jaffray firm with $130m in annual training for Barr Rosin Dryer
revenues "in- series" operations
•Procter & Gamble •University of St. Thomas, MBA
•Deltak, LLC •University of Kansas, BA and
•Studied mechanical engineering •University of North Dakota, MA
at the University of Cincinnati BBA •University of Minnesota, MBA
and BS
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