PC Meeting Date: August 15, 2024
To: Members of the Planning Commission
From: Jake Reilly, Community Development Director
Mikayla Schmidt, City Planner
Mathias Hughey, Associate City Planner
Title
Discussion of Industrial Use-Specific Design and Performance Standards.
Body
Action Requested:
No formal action requested. Staff will facilitate a discussion related to standards and guidelines for industrial districts.
Summary Report:
As demonstrated in multiple adopted plan documents, studies, evaluations, and reports over the decades, the City of Northfield tax base comprises mostly single-family homes and other residential structures. Property taxes are the primary mechanism by which municipalities and other local units of government are funded in Minnesota.
The State of Minnesota sets property tax rates through a legislative process, and has a robust and fairly complicated property tax system. Residential-use property is taxed at a lower rate than commercial/industrial-use property, which fall under the same tax rate classifications. Property taxes are generally seen as more “regressive” in that the burden is greater on lower wage-earners (or those on a fixed income) while income taxes are, “progressive” in that the tax impact increases as the wage goes up.
How land is used and where those uses are located in relationship to people, goods, and services is an important consideration in comprehensive planning. As the city works through the 2045-horizon comprehensive plan alongside a focused initiative to diversify the tax base in the city by taking a data-driven approach, the Planning Commission has a role in guiding that work. After adopting an Alternative Urban Areawide Review (AUAR) for the Northwest Area of the city, currently zoned AS - Agricultural Services, site selectors have been expressing more interest in the site and several land owners in the area are willing participants in that conversation. The 2008 adopted Comprehensive Plan identifies that area as a proposed industrial and/or commercial use. The two scenarios in the AUAR reflect that intent. A link to the AUAR is included as an attachment.
Further, the existing industrial areas of the City do not have particularly strong guidelines for site development, design elements, consideration of sustainability concerns, or compatibility with surrounding uses. In an effort to focus recruitment efforts for potential new and/or expanded industrial uses citywide, and to ensure those recruitment efforts can be effective and can accurately reflect the current strategic and comprehensive goals of the city related to expanded/diversified tax capacity and tax base, climate change mitigation, resiliency, and economic success, staff are seeking input from Planning Commissioners on updated criteria for industrial uses, particularly regarding design and performance standards.
Alternative Options:
Alternatives will be shared during the meeting.
Financial Impacts:
At this time this is a staff-driven effort and therefore no additional funds are anticipated to be spent on evaluating or writing code language. However, there are long-term financial impacts associated with industrial uses, both positive and negative.
Tentative Timelines:
August 15, 2024 - Initial discussion of industrial use district with Planning Commission
September 2024 - Draft language to planning commission and council
October 2024 - Public hearing at planning commission on draft language
November 2024 - Planning commission decision on text and/or map amendments
December 2024 - Council decision on text and/or map amendments
Q1 2025 - New industrial use regulations in place.