City Council Meeting Date: December 3, 2024
To: Mayor and City Council
City Administrator
From: Mikayla Schmidt, City Planner
Jake Reilly, Community Development Director
Title
Consideration of the Second Reading of Ordinance No. 1071 Amending Chapter 34 - Land Development Code Related to Industrial and Agricultural Land Uses.
Body
Action Requested:
The Northfield City Council approves the second reading of Ordinance No. 1071 Amending Chapter 34 - Land Development Code Related to Industrial and Agricultural Land Uses.
Summary Report:
Council Discussion & Recommendation
Much of the Council discussion regarding the text amendments related to considering the range of uses possible in the I1-B Industrial zoning district relative to the oral and written comments from residents, neighbors, and customers of adjacent and adjoining natural and structured recreational opportunities at Planning Commission public hearings. The council also asked questions regarding language associated with performance standards for uses, including data processing centers, that were cited as a concern by multiple constituencies. Some of those concerns included the carbon footprint of data processing centers generally as well as concerns related to how data processing facilities make use of water, energy, and potential to produce sound, light, and vibrations. The council also discussed - and reiterated - the policy intent and the long-held understanding of a policy direction to diversify the tax base, in part through identifying new land within the city limits to zone for commercial and industrial uses, being the primary goal of the council regarding economic development initiatives. The Councilmembers clearly stated support for ensuring growth sectors could locate in Northfield and that those new businesses meet as many goals as possible associated with sustainable development while not sacrificing the potential for increased tax capacity.
At the November 26, 2024, regular meeting of the City Council a motion was made by Council Member Ness, seconded by Council Member Holmes, to approve the first reading of Ordinance No. 1071 Amending Northfield City Code, Chapter 34 - Land Development Code: Article 2. Zoning Districts and Use Regulations, Article 3. Site Development and Article 9. Definitions retaining the language referring to Data Processing Facilities.
Planning Commission Public Hearing, Discussion, & Recommendation
The City of Northfield Planning Commission recommended a map amendment (Resolution 2024-009) to rezone approximately 535 acres owned by St. Olaf College and David Sorem to I1-B Industrial. The Planning Commission also recommended text amendments (Resolution 2024-010) to update Chapter 34 - Land Development Code of the City’s Code of Ordinances. The text amendments recommended by the Planning Commission include amendments responding to:
1) Stated interest in refining land development code regulations to provide clarity to both staff and developers regarding design guidelines and standards specific to industrial users; and
2) The adoption of the Northwest Area Business Park Alternative Urban Areawide Review (2023) and related renewed interest from developers and site selectors; and
3) MN Session Law Chapter 63, which legalized adult-use cannabis and established a regulatory framework over the cannabis industry through the State of Minnesota’s Office of Cannabis Management. The Office of Cannabis Management (OCM) is expected to begin licensing cannabis businesses in early 2025.
The Planning Commission held a public hearing on October 30, 2024, on the map amendment and, due to a notice error, a continuation of that public hearing on November 21, 2024. A public hearing on the text amendments took place at that same November 21, 2024, Planning Commission meeting.
The City of Northfield has been planning for the development of the Northwest Area for more than 15 years. This planning is consistent with the adopted Comprehensive Plan (2008), the 2006 Comprehensive Economic Development Strategy and the City’s adopted Strategic Plan (2021) related to tax base growth. The City Council passed Ordinance 1065 on August 5, 2024, that temporarily prohibited new or expanded development, planning, and zoning applications and permissions in this area through the end of December 2024 and directed staff and the Planning Commission to review code provisions for a recommendation and action before the end of 2024.
Resolution 2024-010 from the Planning Commission retains most of the staff-proposed limited update to the existing I1-B: Industrial zone. The Commission voted 5 to 1 (Kuhlmann) to remove language associated with data processing facilities. The remaining recommended amended text considers changes in building materials and technology, energy efficiency and environmental and economic sustainability to provide guardrails that meet those stated and adopted planning goals and provide clear guidelines and standards for potential industrial users interested in building in Northfield, as well as changes in state law regarding recreational cannabis licensing, production, and use. Related changes to the A-S Agriculture Special Use District, CD-S College District Special Use District, and the removal of the ED-F district are also retained in the Commission’s recommendation.
The Land Development Code is proposed to be updated in 2025, including amendments that may be needed to implement the Future Land Use map that will be adopted with the 2045 Comprehensive Plan.
Staff Recommendation:
Staff recommends second reading of Ordinance No. 1071 amending Chapter 34 - Land Development Code related to Industrial and Agricultural Land Uses.
Alternative Options:
N/A
Financial Impacts:
There are long-term financial impacts associated with industrial uses, both positive and negative.
Tentative Timelines:
February 15, 2024: Planning Commission initiates discussions related to orderly growth and development for economic vitality in the NW area
April 22, 2024: Economic Development Authority considers similar issues
May 16, 2024: Planning Commission revises interim ordinance; requests Council response
June 24, 2024: EDA passes resolution supporting staff and Planning Commission interim ordinance recommendation
July 9, 2024: Council considers interim ordinance recommendation
August 5, 2024: Interim ordinance in effect
August 15, 2024: Planning Commission asked to provide guidance on performance standards and design guidelines for industrial users
October 10, 2024: Draft language to Planning Commission and Council
October 30, 2024: Public hearing on zoning map amendment for Northwest Area properties
November 21, 2024: Planning commission public hearing and potential recommendation on text and/or map amendments and continuation of public hearing on zoning map amendment for Northwest Area properties
November 26, 2024: Council First reading of text and map amendments
December 3, 2024: Second Reading of text and map amendments
December 11, 2024: Summary Publication of text and map amendments
January 10, 2024: Zoning and text amendments take effect.
Q2 2025: Land Development Code update process begins