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HomeMy WebLinkAbout07-15-2004 Planning Commission Meeting Packet111/ VII. Public Hearings: • Adjournment CITY OF OAK PARK HEIGHTS PLANNING COMMISSION Thursday, July 15, 2004 Estimated Times 7:00 I. Call to Order: II. Approval of Agenda III. Introduction of New Commissioner — Warren Wasescha N. Approve Minutes of June 10, 2004 (1) V. Department / Commission Liaison/ Other Reports: A. Commission Liaison: B. St. Croix Crossing Update: C. Other: 7:15 VI. Visitors /Public Comment: This is an opportunity for the public to address the Commission with questions or concerns regarding items not on the agenda. Please limit comments to three minutes. IX. Old Business: A. Re- establish Council Representation Schedule (5) X. Informational: A. Next � -- Meeting: August 12, 2004 Regular Meeting @ 7:00 p.m. B. Council Representative: July — Vice Chair Runk August -- To Be Filled A. Bahr Construction, LLC: To consider request conditional use permit allowing house relocation from 14990 60 St. N. to 15431 58t St. N. (2) B. Xcel Energy — A.S. King Plant (MERP) Rehabilitation: To consider requests for conditional use permit for placement of pollution control devices, allow fill for flood barriers and Variance to height and setback requirements. (3) VIII. New Business: A. Corblick - -15471 58 St. N.: Property Subdivision (Combining of Lots). (4) CITY OF OAK PARK HEIGHTS ENCLOSURE PLANNING COMMISSION MEETING MINUTES Thursday, June 10, 2004 Call To Order: Chair Dwyer called the meeting to order at 7:00 p.m. Present: Vice Chair Runk and Commissioner Oswald. City Administrator Johnson, City Planner Richards and Commission Liaison McComber. Approval of Agenda: Chair Dwyer, seconded by Commissioner Oswald, moved to approve the Agenda as presented. Carried 5 -0. Approve Minutes: Commissioner Dwyer, seconded by Vice Chair Runk, moved to approve the Minutes of May 13 2004 as amended. Carried 3 -0. Department /Commission Liaison Reports /Other Reports: A. Commission Liaison: B. St. Croix Crossing Update: Commission liaison McComber reported that information meetings will be held June 15, 2004 at the Hudson Sr. High School and June 21, 2004 at the Stillwater Junior High School. Both meetings are proceeded by an open house at 5 p.m., with the presentation beginning at 6 p.m. It was noted that the meetings are question /answer sessions and that there would be no comment or testimony taken. C. Other: Visitors /Public Comment: There were no visitors to the meeting other than those present for items upon the published Agenda. Public Hearings: A. Larry Phillips — 5272 Stagecoach Trail, N.: To consider a request for zoning district amendment of variance from city ordinance 401.15.A.7- Destroyed Non - conforming Use, allowing reconstruction of single family dwelling within an I, Industrial Use zoning district. City Planner Richards reviewed the June 3, 2004 planning report regarding the request, noting that a fourth option had been suggested by Commission Liaison McComber for consideration should it be determined that the residential use of the property should continue. Richards noted the suggested option as the rezoning the property, along with the adjacent business property, vacant land and residential properties on Stagecoach Trail be rezoning to RB, Residential Business Transitional zoning. It was noted that should this option be selected, the applicant's request would need to be delayed in order to work through the related issues and notify the other property owners. Richards provided an issue analysis and recommended conditions for approval, should the Commission wish to recommend approval of the request. Chair Dwyer opened the hearing for comment. Larry Phillips — 5272 Stagecoach Trail, N. briefly stated the situation he was in and expressed his preference to the 4th option presented. Mr. Phillips explained why he felt the current zoning was inappropriate and how he believed rezoning the property would allow him to rebuild his home, make in conforming and allow him to have the investment in his home protected. Planning Commission Minutes June 10, 2004 Page 2 of 6 Chair Dwyer inquired as to the property zoning at the time of purchase. It was determined that the property zoning was the same as it is presently and that Mr. Phillips was aware of it at the time of purchase. Mr. Phillips asserted that the home had been used as a tri -plex and that with its reconstruction it would be turned into a single- family residential dwelling. There being no other visitors to the hearings, Vice Chair Runk, seconded by Commissioner Oswald, moved to close the public hearing. Carried 3 -0. Discussion ensued as to the status of area being zoned Industrial since at least the 1970's, option 4 area inclusions and comprehensive plan and zoning text amendment requirements, option 2 variance options possible with a condition extending time frame to allow compliance and actions establishing precedence with a zoning change. It was noted that with a variance the property could still be sold and a single family residential dwelling and could still be erected should Mr. Phillips choose not to rebuild at the site for himself. Chair Dwyer clarified with Mr. Phillips his desire to have the property rezoned so he can build a single family home within the time needed to allow an architect to design it and to get it constructed. Vice Chair Runk, seconded by Commissioner Oswald, moved to recommend City Council approval subject to the June 2, 2004 Planning Report conditions as amended: A. Denial of the rezoning from I, Industrial to R -1, Single Family Residential District based upon the following findings: 1. The surrounding zoning districts to the subject property are 0, Open Space Conservation and I, Industrial. 2. The Comprehensive Plan for the City of Oak Park Heights designates the land use for this area as Highway Business /Warehouse. 3. Rezoning the subject site from I, Industrial to R -1, Single Family Residential District would constitute a spot zoning, which is not permitted under Section 401, the Zoning Ordinance of the City of Oak Park Heights. B. The Planning Commission of the City of Oak Park Heights recommends that a variance from Section 401.15.A.7 of the Zoning Ordinance to allow a single family residence to be constructed on the subject site subject to the following findings of fact: 1. The subject site has existed as a single-family property before the City of Oak Park Heights designated a Highway Business /Warehouse Comprehensive Plan land use designation or zoned the property industrial. 2. Use of the property for industrial purposes is limited and difficult by the size of the lot and the access /site lines for the property. 3. The hardship and need for the variance was created by a fire which constitutes a special condition or circumstance not resulting from the actions of the property owner. C. The Planning Commission of the City of Oak Park Heights recommends the variance from Section 401.15.A.7 of the Zoning Ordinance with the following conditions: Carried 3 -0. Chair Dwyer, seconded by Vice Chair Runk, moved to recommend City Council direct the Planning Commission to conduct a planning study, including a Comprehensive Plan and zoning analysis, for that area along Stagecoach Trail North currently zoned I, Industrial; B -W, Business/Warehouse; and R -2, Low and Medium Density Residential. Carried 3 -0. 4. Use of the site for a single - family residence is a reasonable use of the property. 5. The 2004 Minnesota Legislature enacted legislation effective after the date of the fire which favors reconstruction of pre - existing nonconforming structures that are more than 50 percent destroyed. 1. The property is reconstructed exclusively as a single - family dwelling. Planning Commission Minutes June 10, 2004 Page 3 of 6 2. The well and septic system will be tested with results forwarded to the City before issuance of a building permit. If a new well or septic system is required for the property, they shall be constructed and operational before a Certificate of Occupancy is issued by the Building Official. 3. All setbacks of the applicable zoning district shall be complied with for a new structure. 4. The property shall be in compliance with floodplain regulations, and shall be subject to review and approval of the City Engineer and Middle St. Croix Watershed District. 5. A building permit shall be issued for a single-family structure on the subject site no later than July 1, 2005 and the structure shall be completed with a certificate of occupancy issued by July 1, 2006. B. Doom & Thorbus Automotive Consultants: To consider request for conditional use permit allowing outdoor sales and storage of used automobiles at 14389 59th St. N. City Planner Richards reviewed the June 3, 2004 planning report as to the request as it relates to the request, provided an issue analysis and recommended conditions for approval, should the Commission wish to recommend approval of the request. Chair Dwyer opened the hearing for comment. Rose Kelly —14385 59th St. N. stated that her driveway backs out onto 59th St. N. and that she is concerned about more traffic backing out onto the roadway. She feels that there area lot of cars at the site already with the existing business. Planning Commission Minutes June 10, 2004 Page 4 of 6 Kevin LaCasse - introduced himself as the principle of the agency that owns the building. He stated that the business is an automotive brokerage business and that the number of vehicle on site at any time is very limited. He pointed out that another tenant in the same site as an office use could easily generate more vehicle traffic and increase the number of needed parking without having to go through a public hearing process. He addressed the screening requirement and clarified what material is being required and confirmed that a wooden screen would likely be acceptable. Charles Simonet - 5888 Olene Ave. N. inquired as to the location of the screening placement and expressed that he felt there wasn't any room for one. He is concerned about parking and increased traffic flow, especially large trucks being parked in the roadway of Olene Ave. N. while they are being loaded or unloaded and blocking residential access. He stated that he is not in favor of approval. David Thorbus — the applicant stated that State Licensure of his business requires 5 parking spaces and that while he may occasionally utilize all 5 that would not be the norm for his business operation. He pointed out that his business does not utilize truck delivery of vehicles, that he does not keep a large inventory and does not currently know for certain that he will be storing his inventory on site, in the outdoor conditions. The business operation is a retail sales business with vehicles shown by appointment and at most there may be one person at the office. Vice Chair Runk, seconded by Commissioner Oswald, moved to close the public hearing. Carried 3 -0. Discussion ensued as to both observed and anticipated tenant parking and traffic at the site, marking of facility parking spaces, total parking space requirements for the entire building with notation that the building is in compliance, snow plowing and related issues. Vice Chair Runk, seconded by Chair Dwyer, moved to recommend City Council approval, subject to the June 3, 2004 Planning Report conditions as amended: 1. All cars sold outside shall be shown by appointment only. 2. There shall be no advertising of the business that would invite the public to view the inventory on site. 3. There shall be no special event advertising devices such as business, flags, or prices on windows used on site. 4. All cars shall be presentable and in full operable condition. 5. One two foot by three foot wall sign shall be allowed for the operation, subject to review and approval of City staff. 6. No more than five for sale cars shall be kept on site at any given time. Planning Commission Minutes June 10, 2004 Page 5 of 6 7. No automobile repairs shall be done in the parking lot for the operation. 8. There shall be no exterior storage of automobile parts, accessories, or related items on site. 9. All noise created from the operations shall be in conformance with Section 401.15.B.11 of the Zoning Ordinance. 10. The sales operation shall not be operated between the hours of 10:00 PM and 6:00 AM. 11. The property owner shall work with the adjacent single family owner to determine if any additional screening or landscaping is necessary in their side yard to screen the commercial building and parking area. The property owner shall develop a screening/landscaping plan subject to review and approval of the City staff. The approved screening /landscaping plan shall be installed 90 days following City Council approval of the conditional use permit. 12. The property owner shall develop a plan to screen the trash dumpsters, subject to review and approval of City staff. The approved screening plan shall be installed 90 days following City Council approval of the conditional use permit. 13. One additional disability accessible stall shall be designated near the rear of the building, subject to review and approval of the City staff. 14. The tenant may designate up to five parking spaces for exclusive use of the auto sales business. Carried 3 -0. Chair Dwyer, seconded by Commissioner Oswald, moved to recommend City Council direct that the Oak Park Heights Police Department and Public Works Department review the site and make a recommendation on street parking and loading access for 59th Street North, Olene Avenue North, Olinda Avenue North and 60th Street North. Carried 3 -0. New Business: A. Planning Commissioner Appointment: Chair Dwyer stated that two highly qualified candidates applied for the commission vacancy and were interviewed. He extended thanks to both applicants for applying. Chair Dwyer, seconded by Commissioner Oswald, moved to recommend that the City Council appoint Warren Wasescha to the Commission seat for a 3 year term. Carried 3 -0. Old Business: A. Re- establish Council Representation Schedule: Chair Dwyer, seconded by Commissioner Oswald, moved to table this matter to the July meeting, when the new Commissioner is on board. Carried 3 -0. Informational: A. Next Meeting: July 8, 2004 7:00 p.m. — Regular Meeting B. Council Representative: June — Commissioner Liljegren July — Vice Chair Runk Adjournment: Commissioner Oswald, seconded by Vice Chair Runk, moved to adjourn at 8:28 p.m. Carried 3 -0. Respectfully submitted, Julie '. Hultman Co nity Development Approved by the Planning Commission: Planning Commission Minutes June 10, 2004 Page 6 of 6 PLANNING REPORT TO: Eric Johnson FROM: Dan Petrik/Scott Richards DATE: July 8, 2004 RE: Oak Park Heights Conditional Use Permit for Bahr Construction to move one . 9 -- 58 house from 14990 60 Street North to 15431 58 Street North. FILE NO: 798.02 — 04.09 BACKGROUND Rodney Bahr, has requested a conditional use permit to allow for an existing The applicant, R y q y detached single family home to be relocated onto a vacant lot at 15431 58 th Street North. The lot is within the R -1 District, Single Family Residential. Adjacent to this lot is another vacant lot (15403 58 by th Street North) also owned b the applicant. He has indicated that future plans for this is lot may include new home construction or the relocation of another home. Attached for reference: Exhibit 1: Exhibit 2: Exhibit 3: Exhibit 4: NORTHWEST ASSOCIATED CONSULTANTS, INC. 5775 Wayzata Boulevard, Suite 555, St. Louis Park, MN 55416 Telephone: 952.595.9636 Facsimile: 952.595.9837 planners @nacplanning.com Site Plan Grading Plan Landscape Plan Building Foundation Plan ENCLosuRe 2 ISSUES ANALYSIS Comprehensive Plan - The Comprehensive Plan Land Use Map designates the lot for single The neighborhood containing residential use. g 9 the lot is an older area of mostly one and two-story homes. . Immediate) across the street from the vacant lot are two single --story homes dating from the 195 pp 0s and 1960s. The applicant has cleared the site of previous structures and trees in anticipation of the move. • Zoning - The zoning map designates the lot as R -1, Single - Family Residential. The lot and site plan meet the following requirements for this district: minimum lot size- 10,400 square feet, minimum lot width of 80 feet, front setback of 30 feet, side setback of 10 feet and rear setback of 30 feet. Conditional Use Permit - The Zoning Ordinance, Section 401.15.J., requires that the relocation of apy building or structure over one hundred and twenty (120) square feet onto another lot within the City be subject to review and approval of a conditional use permit. In evaluating the requested conditional use permit, Section 401.03.A., of the Zoning Ordinance directs the Planning Commission and City Council to consider the possible adverse effects of the proposed use, with their judgment based upon, but not limited to the following factors: a. Relationship to the specific policies and provisions of the municipal Comprehensive Plan. b. The conformity with present and future land uses of the area. c. The environmental issues and geographic area involved. d. The impact on character of the surrounding area. e. The demonstrated need for such use. f. Traffic generation by the use in relation to the capabilities of streets serving the property. g. The impact upon existing public services and facilities including parks, schools, streets, utilities and the City's service capacity. Comment: Grading according to the submitted grading plan will cause much of the runoff from the relocated structure and its lot to flow onto the property immediately to the south (despite arrows indicating otherwise). The City Engineer must review and approve the grading plans prior to construction. The character of the surrounding community is influenced by mature vegetation and foundation plantings. Landscape plans for the relocated home blend into that of the surrounding homes. p Landscape plans should be approved by the City Arborist. Aside from drainage and landscaping concerns, staff has evaluated the above criteria and feels that the applicant's project meets these requirements. Performance Standards - Additional comments and criteria for review of a conditional use permit specific to the relocation of a structure as specified in Section 401.15.J. of the Zoning Ordinance are as follows: a. Upon relocation, the building shall comply with the applicable requirements of the Uniform Building Code in effect in Oak Park Heights. Comment: The submitted building foundation plan shows the garage doors facing north, whereas site plans show the garage doors facing east. Revised building plans must be submitted showing the proper garage orientation. The building plans are subject to review and approval of the City's Building Official. 2 1 1 b. The ro osed relocated building shall comply with the character of the neighborhood in P P g which it is being relocated as determined by the City Council. Comment: The neighborhood consists of mostly one and two -story residential structures of Com g mixed age and sty house le. The proposed h is a one -story home with attached garage and will not be at variance with the existing neighborhood character. c. The relocated house will not result in a depreciation of neighborhood or adjacent property values. Comment: The lot reviousl contained buildings that were in poor repair. The proposed P Y house will have a new foundation and be a improvement to the lot and surrounding houses. d. The relocated structure shall be similar to the market valuation of adjacent principal structures as determined by the City Assessor. Comment: According to information provided by the City Assessor, the estimated 9 timated market P value of the house to be moved is $180,500 at its current location at 14990 60 th Street North. Homes in this area are generally newer and of higher value than homes in the village area where the house is to be moved. The estimated market values of houses in the village area range from $115,400 to $168,600. Occupancy - The relocated structure shall be ready for occupancy within eight (8) months p Y from the date of location on the site. Comment: The applicant will be required to complete the project within eight months. Performance Security - A performance security shall be provided to the City as specified in Section 401.08 of the Ordinance. Comment: The applicant will be required to provide the specified security. CONCLUSIONS /RECOMMENDATIONS neighborhood at 58 Street North. a positive addition to the lot and nei The relocated house will be p 9 Based on the issues outlined in this report, staff recommends approval of the requested conditional use subject to the following conditions. 1. Upon relocation, the building shall comply with the applicable requirements of the Uniform Building Code subject to approval of the City's Building Inspector. 2. A P erformance security is provided to the City as specified in Section 401.08 of the Ordinance. 3 3. The relocated structure is ready for occupancy within eight months from the date of location on the site. 4. A site plan showing landscape improvements approved by the City Arborist. 5. Approval of a grading plan by the City Engineer. 6. 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NQ RTHWEST ASSOCIATED CONSULTANTS, INC. 57 75 Wayzata Boulevard, Suite 655, St Louis Park., MN 55418 Telephone: 95 .5$5.963 Facsimile: 952.585.9837 p1anners%nacpIanning com PLANNING REPORT TO: Eric Johnson FROM: Scott Richards DATE: July 9, 2004 RE: FILE NO: 798.02 - -04.08 BACKGROUND Ronald Elsner, representing Xcel Energy, has made application for a conditional use permit for improvements in the River Impact District, a conditional use permit for land reclamation and grading, and variances from height requirements for the Allen S. King Generation Plant. The applications are to accommodate a 382 million dollar plant upgrade that would install state of the art pollution control equipment at the King plant and replace existing cooling tower structures. The plant is located on Highway 95, adjacent to the St. Croix River. The MERP project started in 2004, with completion expected in 2007. The peak of construction will be in 2006 and early 2007. At the time of peak construction, up to 300 construction workers could be involved in the project. The property is zoned 1, Industrial District in which power generating plants are a permitted use. The King plant is also in a River Impact District which requires a conditional use permit for construction activities. A conditional use permit is also required for the fill that will be added to install flood control devices. The variance is required for building height. Attached for reference: Exhibit 1: Exhibit 2: Overall Site Plan Power Plant Equipment Layout Diagram ENCLOSURE "3 Oak Park Heights — Xcel Energy/A.S. King plant: Metro Emissions Reduction Project (MERP) to install state of the art pollution control equipment and cooling tower replacement Exhibit 3: Exhibit 4: Exhibit 5: Exhibit 6: Exhibit 7: Exhibit 8: Exhibit 9: Exhibit 10: Exhibit 11: Exhibit 12: Exhibit 13: ISSUES ANALYSIS Cooling Tower Site Plan Conceptual Elevation of New Cooling Tower Roadway Construction Site Plan Construction Parking Plan Power Plant Perspective (After Construction) Project Timeline Tree Inventory and Maps Application Description from Xcel Letter and Scope of Project from Xcel Letter on Tax Implications Letter from Eric Johnson on Tax Implications Comprehensive Plan. The Comprehensive Plan designates the area as industrial land use. The power plant and its accessory structures are recognized as industrial land uses consistent with the maps and policies of the plan. Zoning Ordinance. The site is zoned 1, Industrial District in which power plants and accessory structures are a permitted use. The King plant is also located in the River Impact District. Section 401.34 of the Zoning Ordinance requires a conditional use permit for significant development/redevelopment within the River Impact District. A conditional use permit is also required for land reclamation and grading under Section 308.08 of the City Code. That provision of the Code indicates that movement of more than 25 cubic yards of material per acre requires submittal of plans and a conditional use permit review. The height variance is required to vary from the 45 foot height requirement specified under Section 401.15.0.2 of the Zoning Ordinance. The setbacks proposed for the plant upgrades are consistent with the Zoning Ordinance setbacks specified in Section 401.15.C.1. The project is also subject to the Shoreland Regulations which specify a 100 foot setback from the ordinary high water level and a 30 foot setback from the top of a bluff. The addition to the cooling towers will be the structural elements closest to the ordinary high water level and the top of bluff. The new cooling tower will be in approximately the same location as the existing structure and is setback at least 40 feet from the top of the bluff and 140 feet from the ordinary high water level. Proposed Project. The MERP project involves rehabilitation of the King plant to reduce emissions and modification of selected plant equipment to extend the life of the plant at approximately original capacity. The scope of the project is to add emission control equipment and rehabilitate existing electric generation equipment to return the King plant to its original design capacity. The new air quality control system includes selective catalytic reduction for nitrogen oxide (NO) control, flue gas scrubbers for control of sulfur dioxide (S02) emissions, and 2 Emission Reduction Sulfur Dioxide, S02 91% Nitrous Oxide, NOX 89% Particulate Matter 20% Mercury 20% fabric filters for control of particulate matter. With these modifications, the King plant will reduce current annual air emissions by the following amounts: The rehabilitation also includes steam turbine replacement, steam generator repairs and modifications, circulating water system modifications, coal handling upgrades, auxiliary electric system upgrades, and other equipment rehabilitation to extend the life of the plant, making the emission control upgrades cost effective. The scope of the work and timeline is found as Exhibit 9. The project is expected to be completed in June of 2007. At the peak of construction, there will be approximately 300 employees, contractors, and trade personnel working at the King plant. Parking/Traffic. The plant currently has adequate parking for the current operations and the Administration Trailer Complex that will be installed this Summer. . The submitted plans indicate 316 temporary parking stalls that will be installed to accommodate the construction workforce. Xcel will need to work with Andersen Corporation, MnDOT and the City as the project progresses to analyze any traffic concerns on Highway 95 that could occur from workforce shift changes at this construction site and at Andersen. Lighting. Any lighting of the construction site and of the temporary parking lots will need to be in compliance with the Zoning Ordinance and subject to review and approval of City staff. Tree Protection /Replacement and Landscaping. The submittals include a tree inventory and maps indicating the trees to be removed. The tree removal and replacement aspect of this project subject to review and approval of the City Arborist. No additional landscaping is proposed for this project. The existing trees adjacent to the St. Croix River will remain to provide partial screening of the cooling towers to the river. Tax Implications. The applicants have provided information related to the tax implication for the MERP project. That information is found as Exhibit 12. Eric Johnson, City Administrator, has addressed the tax issues in his letter found as Exhibit 13. Design Guidelines. The Design Guidelines specify that all structures requiring a building permit require design review. The power plant and the existing accessory structures were not built subject to the Design Guidelines standards. The power plant 3 and cooling towers are industrial structures constructed of specific materials appropriate to the function of the plant. Variations to the Design Guidelines may be allowed by the City Council. Due to the unique construction required for the cooling towers and the power plant upgrades, the Design Guidelines should not be enforced for the proposed structures. Conditional Use Permit — River Impact District. The overall MERP improvements for the King plant are subject to conditional use permit approval. The Planning Commission should consider the conformity, environmental issues and impacts of the proposed project in making its recommendation. The conditional use permit criteria, found in Section 401.03.A.7 of the Zoning Ordinance, are found as follows: 1. Relationship to the specific policies and provisions of the municipal Comprehensive Plan. 2. The conformity with present and future land uses in the area. 3. The environmental issues and geographic area involved. 4. Whether the use will tend to or actually depreciate the area in which it is proposed. 5. The impact on character of the surrounding area. 6. The demonstrated need for such use. 7. Traffic generation by the use in relation to capabilities of streets serving the property. 8. The impact upon existing public services and facilities including parks, schools, streets, and utilities, and the City's service capacity. 9. The proposed use's conformity with all performance standards contained herein (Le., parking, loading, noise, etc.). Due to the location of the King plant in an industrial area, the importance of the facility to the area and the Metro region as a whole, and the goal of the current project to improve the emissions from the facility, the project is consistent with the above criteria. Conditional Use Permit — Land Reclamation. As part of the project, significant new berms are being added on site to provide flood control for the plant and accessory structures. The conditional use permit is required as a means of review for this degree of fill and change to the existing grade. The addition of the berms will protect the plant and Xcel's significant investment in the site. The same criteria for conditional use permit approval should be reviewed for this request. The grading and drainage plans shall be subject to review and approval of the Corps of Engineers, Department of Natural Resources, and the City Engineer. Variance — Building Height. As indicated, the building height requirement is 45 feet within the 1, Industrial District. The existing power plant, stack and cooling towers exceed this limit. The City granted a variance in 2000 to allow for the construction of the cooling towers that will remain on site. Exhibit 1 indicates the proposed heights of the various elements of the rehabilitation project. The tallest element of the rehabilitation project for the plant would be 199 feet. The cooling tower would be 68 feet. 4 Section 401.04.A.4 of the Zoning Ordinance states that a variance from the terms of this Ordinance shall not be granted unless it can be demonstrated that: a. Undue hardship will result if the variance is denied due to the existence of special conditions and circumstances which are . peculiar to the land, structure, or building involved and which are not applicable to other lands, structures or buildings in the same district. 1) Special conditions may include exceptional topographic or water conditions or, in the case of an existing lot or parcel of record, narrowness, shallowness, insufficient area or shape of the property. 2) Undue hardship caused by the special conditions and circumstances may not be solely economic in nature, if a reasonable use of the property exists under the terms of this Title. 3) Special conditions and circumstances causing undue hardship shall not be a result of lot size or building location when the lot qualifies as a buildable parcel. b. Literal interpretation of the provisions of this Ordinance would deprive the applicant of rights commonly enjoyed by other properties in the same district under the terms of this Ordinance or deny the applicant the ability to put the property in question to a reasonable use. c. The special conditions and circumstances causing the undue hardship do not result from the actions of the applicant. d. Granting the variance requested will not confer on the applicant any special privilege that is denied by this Ordinance to other lands, structures or buildings in the same district under the same conditions. e. The request is not a result of non - conforming lands, structures or buildings in the same district. f. The request is not a use variance. g. The variance requested is the minimum variance necessary to accomplish the intended purpose of the applicant. h. The request does not create an inconvenience to neighboring properties and uses. The hardship in this case would be the necessity to design the structures to this height for the proper functioning of the power plant. A power plant is a specialized industrial facility that requires the heights proposed. The plant cannot be constructed at the 45 foot height limitation. The design of the power plant and the cooling tower mandates the height of the proposed improvements, which is determined as a special condition that necessitates the approval of the variance. 5 Federal and State Approvals. The plans for the project must be submitted to the applicable Federal and State agencies for approval including, but not limited to, the Corps of Engineers, Minnesota Pollution Control Agency, Department of Natural Resources, and others that apply. CONCLUSION AND RECOMMENDATION Based upon the preceding review, City staff recommends approval of the conditional use permits and variance for the MERP project at the King plant. Further, staff recommends that the Design Guidelines be waived for the structures proposed on the site. The approvals are subject to the following: 1. Xcel shall work with the Andersen Corporation, MnDOT, and the City as the work progresses to analyze any traffic concerns for Highway 95. 2. Xcel shall construct at least 300 parking stalls to accommodate construction personnel for the project. 3. All lighting at the construction site and temporary parking lots shall be in compliance with the Zoning Ordinance. 4. The tree removal and replacement shall be subject to review and approval of the City Arborist. No additional landscaping is required for the project. 5. The City will not require conformance with the Design Guidelines for the project. 6. The plans for the project must be submitted to and are subject to approval of the Corps of Engineers, Minnesota Pollution Control Agency, Department of Natural Resources, and others that may apply. 7. Xcel anticipates that the boiler and turbine will not be considered exempt for tax purposes under MN Statutes 272.02 or as amended. 8. Any other conditions of the City staff, Planning Commission and City Council. 6 2 j a a .. f.a g 511:8;;;Y.S ai 1 1 1 1 1 1 1 1 a 1 1 1 a 1 2 1 1 2 1 v 1 1 1 1 1 1 1 1 1 2 4 1 1 1 1 1 1 1 1 1 1 1 1 1 2 1 1 1 1 1 1 1 1 1 2 1 1 1 1 1 1 1 2 a 1 1 1 1 1 1 1 1 ' 1 s 1 1 •• 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 NOIi3flaiSNO3 1SV3 1 1 1 1 1 1 1 1 1 1 1 1 1 a 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 a 8 8 1 1 a Jj 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 3 3 8 1 1 1 1 ij • • • • 4 40,E 3 11.00 8—£0 • ...AO AAA. AA.. • A.A. ••■••A • • • Ali • 1 / 9 0 a a Pi z c2 (no 1— m V) 0 0 1— Er 0 0 Z LL k k • ••••••••••••••• •••••... • •••■••■•• •• • • • • • ....AAA • • • • • • . • • • • • ••• .••••• •• WOW' I '01! J. 13 WTI two !MOM I Z S Z lZ:R"s 6'10 90 Qr. 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XHIBIT 7 AMSPAIMin 0 0 2 2 x m a a CL 0 0 m 0 0 0 0 0 1. 1 i s E 0 0 0.h to d 0 U) U U cn E 0 Free No. Tree Type /Species Location DBH (in) Height (ft) 1 Poplar /aspen NW parking/laydown area 12 N/A 2 Poplar /aspen NW parking/laydown area 12 N/A Md -kr)`O[ Po plar /aspen NW parking/laydown area ! N.N N'''' N/A Conifer NW parking/laydown area 10 + 10 + Conifer NW parking/laydown area Conifer NW parking/laydown area 10 + Elm NW parking/laydown area N/A 8 Poplar Between warehouse and new road 13 N/A 9 Poplar Between warehouse and new road 17 N/A 10 Poplar Between warehouse and new road 18 N/A 11 Poplar Between warehouse and new road 13 N/A 12 Poplar Between warehouse and new road 14 N/A 13 Poplar Between warehouse and new road 12 N/A 14 Poplar Between warehouse and new road 17 N/A 15 Elm Next to warehouse 12 N/A 16 Elm Next to warehouse 12 N/A 17 Elm Next to warehouse 14 N/A 18 Elm Next to warehouse 17 N/A 19 Weeping Willow Between warehouse and new road 36 N/A 20 1 Weeping Willow Between warehouse and new road 28 N/A 21 Weeping Willow New haul road entrance from King Plant Rd. 45 N/A King Plant Tree Inventory EXHIBIT 9 �1 ? . : tD -> I cr co ■ ). co • r . • • LL C •Ire:._ N On It 11 It GY c . • (i) > 0<< Q jci:Q: Inc a3 0 C>� : _+x . 14 .fir W Oti / L - t t� t vi IP' i I x1 • . 7 t'' j t f • %4 'N O ii 4WD ) Pla. if 1 • ‚'2: •• !. •tom • •A•i .�• ..i. 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V 711.3 r %r It._t % 1 713.5 i 713.5 x 7 84.3 X 713.3 712.5 714.4 710.9 709.7 _ -x... 711.4 710.9 714,1 711.4 1J 712.7 7'13.`5 N \ \ 700,7 X 898.4 704.4 707.6 711.,1 897.1 705.8 691.8 X 891.8 711.7 X 712.1 x 689.4 Wow.. 683.1 684.7 �` \ '\ . \ , \ \\\\' 697.71 \,6 l i AT x , , \ •....- . \\111\‘ , f V 1 • ••lw \ V1 .fi . 1 1 ij 4 ! q iM 6 11 1 1 \\ \( t ‘\\ 1I J 1 •..••.. .698.7 j j i f I 4R1 � �'�> � 11 •��,\ � r.� �• !� f \ ' / ' V$ • 111111(1) W11 f f 1 10) :.� ji r ) /" 11 1 1)) �-- 01 . l i \1\11,1:.\.,\\\ L ti 704.4 i .1 705.3` 1 N 700,0 7109 • .s 699,8 701.4 697.9 TOTAL = 4.29 AC. ROADS - 36,575 S.F. GRAY. = 143,525 S.F. GRASS = 6921 S.F. k, 6929 t t q e ,.693.3 fi9.9 � x f 612.8 7 41 X d 690.3 f 'w 688.3 711.8 692.3 Age ■‘, x 684 691.4 G9?,6 891.4 ..�•r' - 690.7 ,.-, 6 x 691.3 x 691.8 r 7134,,. TEE n 5 601.9 H • X 1 092, 701 762, 7©4.3 Emission Reduction Sulfur Dioxide, S02 91% Nitrous Oxide, NOx 89% Particulate Matter 20% Mercury 20% Xcel Energy June 8, 2004 King Rehabilitation Introduction The Xcel Energy Metro Emissions Reduction Project (MERP) will install state -of -the -art pollution control equipment at the Allen S. King (hereafter, "King ") plant in Oak Park Heights to significantly reduce air emissions from this facility. MERP reflects our commitment to providing reliable energy to customers while reducing the environmental impact of generating that power. The package of additions and improvements at King, valued at $382 million, will be completed over the next three years. The scope of the project is to add emission control equipment and rehabilitate existing electric generation equipment to return the King plant to its original design capacity. The new air quality control system includes selective catalytic reduction for nitrogen oxide (NOS control, flue gas scrubbers for control of sulfur dioxide (S02 ) . emissions, and fabric filters for control of particulate matter. With these modifications, the King Plant will reduce current annual air emissions by the following amounts: The rehabilitation also includes steam turbine replacement, steam generator repairs and modifications, circulating water system modifications, coal handling upgrades, auxiliary electric system upgrades, and other equipment rehabilitation to extend the life of the Y plant, lant, makin the emission control upgrades cost - effective. Additional information on the scope of the project is included in Attachment 1. 1 EXHIBIT 10 Xcel Energy King Rehabilitation Project Details Scope of Work The scope of work for the King Plant includes the introduction of emissions reduction Th p equipment as well as ui P approximately replacement and modification of existing equipment to extend the p life of the plant at a its original capacity. See Attachment 1 for scope details. Schedule The strategic planning l� for the King Plant portion of the MERP began in October, 2003 � and the entire scope of work will be completed in June of 2007. Please see Attachment 2 for a schedule of the project milestones, including engineering and construction. Construction Personnel At the p eak of construction activities, there will be approximately 300 employees, contractors and trade ersonnel working at the King Plant. Some of these will be directly p contracted b y Xcel, others will be subcontracted through construction contractors and vendors whose scope includes erection of new equipment. Parking We estimate that we will need and provide approximately 300 temporary parking spaces to accommodate the p eak workforce for this project. Please see Attachment 3 for the conceptual parking arrangement. Lighting Plan Lighting added for this project will be in accordance with city standards and g g p requirements. June 8, 2004 Tree Protection and Replacement It is o project's intention to minimize the roj ect's impact to the tree population on the King site. while we don't anticipate having to remove "significant" trees — as defined by the But , p „ City of Oak Park Heights' "Landscape Guidelines for Developers" (3/1/2002) — some ty g .. impact. act may be inevitable. We will work with you at a future date to mitigate any impact. P y X.Eflergy - December 11, 2003 Dear Dr. Haar, Burl W. Haar Egecuriye Secretary Minnesota. Public Utilities Commission 121 Seventh Place East, Suite 350 St Paul, MN 55101-2147 RE: SETTLEMENT AGREEMENT EMISSIONS REDUCTION PROPOSAL DOCKET No. E002/M- 02 -633 414 Nicollet Mall Minneapolis, Minnesota 55401-1993 On behalf of Northern States Power Company d /b /a Xcel Energy, the Minnesota Department of Commerce, the Office of the Attorney General — Residential Utilities Division, the Minnesota. Pollution Control Agency, Minnesota. Chamber of Commerce, Northstar Steel, Izaak Walton League of America — Midwest Office, Minnesotans for an Rnergy- Efficient Economy, Suburban Rate Authority and the Sierra Club (collectively, "Parties', please find the attached Settlement Agreement proposed for the Commission's consideration and approval in this docket. The Parties recommend that the Minnesota Public Utilities Commission approve the Proposed Plan filed by Xcel Energy on July 26, 2002 in this proceeding, subject to the terms of this Settlement Agreement. • The Parties agree that the Plan achieves significant environmental benefits that are not otherwise required by law at a cost that is significant but not unreasonable, consistent with the requirements of Minn. Stat 216B.1692. Specifically, the Commission can find that the Plan and the rate rider, subject to the terms of the attached Agreement, meet the requirements of Minn. Stat. 216B.1692, subd. 5. Under this provision, the Commission may approve a rate rider that: (1) Allows the utility to recover the costs of qualifying emissions reduction projects net of revenues attributable to the pr jest. Provision 23 of this Agreement provides a mechanism and requirements for crediting revenues to the rate rider in compliance with this requirement EXHIBIT 11 (2) Allows an 4 return on investment associated with quagving emissions at the level established in the public utility's lastgeneral rate case. Provisions 8 -12 address rate of return, providing, among other things, a sliding-scale approach to encourage effective management of Plan implementation. This incentive return is an important provision for ensuring the overall reasonableness of the costs of Plan. (3) Allocates project costs appropriately between wholesale and retail customers. Provision 16 provides for appropriate jurisdictional allocations. (4) Provides a mechanism far recovery above cost, ofnecessay to improve the overall economics of the qualiffingprojects to ensure implementation. Provision 9 addressing Construction Work in Progress provides for recovery of the return on CWIP during the construction period of the Plan. This treatment provides for recovery of costs in a way different than traditional ratemaking. Given the magnitude of the Plan and the length of the construction period, this treatment of CWIP is needed to ensure implementation of the Plan. (5) Recovers costs from retail customer classes in proportion to class energy consumption. Provisions 31 and 32 address rate design and satisfy this requirement. (6) Terminates recovery once the costs of the gatali�ing pmmjectr have been frilly recovered Provision 28 provides the elimination of the rate rider in the first rate case after all three plants have come into service. The statute ftirther provides conditions under which the Commission may not approve a rate rider, including whether the project is required bylaw or as a part of any corrective action. Such conditions do not apply to the Plan, as evidenced by the December 29, 2002 Report of the Minnesota. Pollution Control Agency. Finally, the statute provides that Commission may not include in the rider any costs that are not directly allocable to:the reductions of emissions. This requirement likewise does not apply to the Plan. The Minnesota. Legislature removed any ambiguity on this point with its passage of 2003 Laws of Minnesota, First Special Session, Chapter 11, Article 3, Sec. 12 at 1687 -88, which states that all costs related to the Company's primary proposal in this proceeding are eligible for recovery through the rate rider. This Agreement provides rate terms that protect ratepayers while facilitating implementation of the Plan. Subject to these terms, the Plan and rate rider meet the statutory requirement of achieving significant environmental benefits with consumer costs that, while significant, are not unreasonable. The Parties thus recommend that the Commission approve the Plan, subject to the terms of this Agreement The Parties look forward to presenting this Agreement to the Commission. We are available to respond to any questions the Commission or its staff may have. We appreciate the Commission's consideration of this Agreement, and look forward to resolution of this proceeding. Sincerely, OF TORY AFFAIRS (612) 330-6125 Attachment c. Service List ATTACHMENT 1 KING PLANT REHABILITATION PROJECT SCOPE OF PROJECT This project focuses on reducing emissions and sequentially refurbishing the existing plant equipment for additional life at a capacity similar to the unit's original design rating. Emissions reductions will be achieved by means of air quality control system (AQCS) equipment consisting of a selective catalytic reduction ( "SCR ") reactor for control of NO emissions, a spray dryer absorber C'SDA") lime -based semidry flue gas desulfiirization ("FGD") system for control of S0 emissions, and a pulse -jet cleaned fabric filter CPJkk") for control of particulate matter. The boiler, turbine, and other balance of plant systems will be repaired or replaced as necessary to extend their useful life and support the operation of the new AQCS equipment The plant will be modified in accordance with the scope of work described herein. The Sections that follow describe the major aspects of the project. While this document outlines many specifics of the project, it is not an exhaustive list of all details. The limits of the scope of work will be as defined during detailed design. The scope of work to be conducted on each of the components and/or systems discussed herein is assumed to include all work (design, manufacturing, fabrication, delivery, installation, and commissioning) necessary for reliable and efficient operation of a full and complete installation in accordance with all applicable local, state, and federal codes and regulations. AQCS EQUIPMENT UPGRADES The new AQCS equipment for the rehabilitated steam generator will consist of a SCR reactor for control of NO emissions, a lime-based semidry FGD system for control of SO missions, and a Pjr14' for control of particulate matter. NO Control The flue gas leaving the economizer section of the steam generator will be directed to a new SCR reactor. The SCR reactor includes the reaction vessel, support structure ('including foundations and /or piling as may be required), access platforms, walkways, stairs, and lighting. The SCR system consists of an ammonia injection grid ( "AIG ") located upstream of the reactor SCOPE OF PROJECT King Plant Rehabilitation Project Page 2 of 7 and two or more layers of titanium-vanadium-tungsten based catalysts located inside the reactor. Ancillary equipment includes catalyst change out handling equipment (lifting devices and their controls, as well as support structures) and reagent (ammonia) receiving, handling, storage, preparation, and delivery systems. Existing Electrostatic Precipitators Pending results of a condition assessment of their internal components, the existing ESPs are intended to be re -used with minor upgrades. Required modifications include installation of equipment necessary to improve electrical sectionalization, replacement of existing discharge electrodes and their support system with a current rigid discharge electrode design, and stiffening of the ESP shell as required for the balanced draft conversion. SO and Particulate Matter Control The flue gas leaving the ESPs will be directed to two 50 percent capacity semidry FGD absorber modules and one 100 percent capacity PJr'r. Lime slurry may be combined with a slurry of recycled solids from the fabric filter to form the reagent slurry. The reagent slurry is injected in the absorber where the lime reacts with the flue gas SO The reaction products, unreacted reagent, and fly ash suspended in the gas stream are then collected by the fabric filter. The PJFF is a multicompamnent fabric filter using tubular filter bags to remove the FGD byproducts and fly ash from the flue gas. Each compartment contains several hundred individual filter bags. The clean flue gas leaving the fabric filter is directed to two new induced draft fans. The flue gas is then sent to the two inlet breechings of the existing chimney. Scope of work includes design, fabrication, and installation of spray dryer absorbers, fabric filters, lime systems (receiving, storage, handling, preparation, and delivery), reagent slwry (preparation, storage, hand]ing, and delivery), and scrubber bp- product (transportation, storage, handling, and shipping) systems. Balanced Draft To accommodate the additional draft requirements resulting from the installation of the SCR and AQCS equipment, the unit will be converted to balanced draft operation. The unit would be converted to balanced draft operation by installing ID fans and making the appropriate changes to the steam generator and connecting ductwork. Balanced draft modifications include the design, fabrication, delivery, and installation of Induced Draft fans, motors, foundations, controls, dampers, inlet and discharge ductwork, and electrical supply equipment STEAM TURBINE GENERATOR The existing steam turbine generator is the unit that was originally installed when the plant was constructed. The existing steam turbine and the existing exciter have reached the end of their respective useful lives, and will be replaced. The existing generator will be re -used. Steam Turbine replacement scope includes entire new High Pressure, Intermediate Pressure, and Low Pressure sections; foundation modifications as necessary to receive the new machine; new steam chest, control valves, and EHC (electro-hydraulic control) system, as well as piping replacements, additions, or modifications as required to connect the new turbine to the existing HP steam system. The new Exciter will be of a brushless design. STEAM GENERATOR SCOPE OF PROJECT King Plant Rehabilitation Project Page 3 of 7 The existing steam. generator (boiler) is a supercritical, constant pressure, cyclone-fired unit designed by Babcock & Wilcox ("B&W") and put into operation in 1968. The steam generator MCR was reduced due to a switch to low sulfur coal in the 1970s. Several options to return the boiler to its original design steam flow have been proposed. The following work is currently contemplated: replacement of the fumace floor and support system, replacement of the studded portion of the lower furnace sidewalls, installation of new cydone burners and re- entrant throats, stiffening as may be required by the Balanced Draft conversion, installation of new secondary air dampers, installation of a rear wall arch, and potential addition of reheat and/or superheat surface as may be necessary to control steam temperatures. Dismantling of the SCOPE OF PROJECT King Plant Rehabilitation Project Page 4 of 7 lower portions of the furnace will necessitate temporary relocation and /or petmanent modification or replacement of the existing bottom ash slag tank and handling system. BALANCE-OF -PLANT EVALUATION The major balance -of -plant ( "BOP ") equipment was reviewed to determine which components will require repairs or replacement as part of the rehabilitation. Key portions of the balance of plant scope of work to be conducted are as follow: Auxiliary Power System Portions of the existing plant electrical system will be inspected, cleaned, and repaired as required for long-term. reliable service. Portions of the system will be refurbished and upgraded with new solid -state protective relays. The Main Transformer outlet connection to the plant substation will be relocated; relocation to include replacement of towers and conductors. Additional 115 kV to 4160 volt substations, motor control stations, and other . electrical equipment will be required to power the new AQCS, SCR, Cooling Towers, and Balanced Draft equipment, controls, and related devices. Verification of the electrical system capacity and condition will be required during detailed design when all new loads have been confirmed. Distributed Control System A microprocessor -based Distributed Control System ( "DCS ") will entirely replace the existing plant control system. An Emerson `Ovation' system will replace the existing Bailey `Net 90' controls. Ovation is the standard DCS system within the Xcel coal plant fleet. The DCS will include control, information, and historian functions, as well as performance monitoring and cptimizati.on functions. Cooling Tower and Circulating Water System The current cooling water system is a once-through system with inlet and discharge canals. The plant heat rejection scheme is to be studied as part of the environmental permitting process. It is likely that a hybrid system will result. The anticipated hybrid system SCOPE OF PROJECT King Plant Rehabilitation Project Page 5 of 7 would provide operation in two modes: `Once 'Through' cooling, as currently configured, and `Closed Loop' cooling using newly installed mechanical draft cooling towers. Scope of work will include design, fabrication, and installation of new mechanical draft cooling towers and basins, modification and /or replacement of existing circulating water piping modification, relocation, and /or replacement of the existing circulating water pumps; and modification or replacement of the intake screens. Potential modification of the inlet and discharge canals may include design, fabrication, and installation of weirs and /or gates for closed loop operation. Final configuration details are pending based on the terms of the water -use permitting process. Cold Reheat (CRH) piping The Cold Reheat (CRH) piping is a section of the high-energy steam piping system connecting the boiler and the turbine. The existing CRH pipe has reached the end of its metallurgical life, and will be replaced. Scope of work includes design fabrication, and installation of pipe, hangers, anchors, attachments, instnunenta.tion (pressure, temperature, and flow), insulation, and lagging. Other Balance -of -Plant Equipment and Systems Following is an indicative listing of other systems and equipment that - will require inspection, rehabilitation, or replacement Additional details will be developed during detailed engineering design. Coal Handling system Scope of work includes a comprehensive study of existing equipment and systems. Improvements will address operating efficiency and control /reduction of ground level fugitive dust. Ash Handling system The existing Ash Handling system will be modified as required to integrate its operation Condensate system Auxiliary Cooling Water sps_tem Demineralized Water system These systems, each of which is critical to plant operation, will be inspected, adjusted; repaired, or replaced as necessary to insure long term, reliable operation. SCOPE OF PROJECT King Plant Rehabilitation Project Page 6 of 7 with the newly installed scrubber by- product handling system. High - energy �.�nd hangers In addition to the CRH work described above, the balance of the high energy piping systems will be inspected, adjusted, repaired, or replaced as necessary to insure reliable operation. Feed-water system In addition to the inspection, adjustment, repair, or replacement of the feedwater piping, pumps and drives, and heaters, the #15B heater has reached the end of its useful life, and will be replaced. Auxiliary Boiler. Rework of the furnace bottom will necessitate the relocation of the egisiting Auxiliary Boiler. Based on results of a recent condition assessment, economics favor replacement of the Aux Boiler when compared to dismantling, relocating and reassembling the existing Aug Boiler. Fire Protection System The configuration of the existing fire protection system will be reviewed in light of the other modifications and upgrades made to the plant equipment. The fire protection SCOPE OF PROJECT King Plant Rehabffitation Project Page 7 of 7 system will be replaced, modified, and/or upgraded in accordance with recommendations and requirements of Xcers property insurance carrier. • x ce l E ne rgysM July 6, 2004 Mayor, Council Members, Management and Staff City of Oak Park Heights 14168 Oak Park Boulevard North P.O. Box 2007 Oak Park Heights, Minnesota 55082 -2007 Dear City of Oak Park Heights Representatives: 1 have been asked to further clarify the tax implications of the MERP project for the surroundin g areas we serve and particularly the City of Oak Park Heights. Based on what we know now, Xcei Energy anticipates all the boiler and turbine project costs would be taxable. The tax information in the letter 1 sent you dated . June 28, 2004, is based on the boiler and turbine costs not qualifying for a tax exemption. Please keep in mind that the Minnesota Department of Revenue is p p the governing agency. 1 appreciate the help and advice we continue to receive from Oak Park Heights in support of this project. if Y ou have additional questions and concerns about the property tax or the MERP project, please feel free to contact me. Sincerely, 9- r-(1,,3 Mark J. Fritsch Director Alien S. King Generation Plant 1103 King Plant Road Bayport, Minnesota 55003 -1000 EXHIBIT 12 Enclosure 13 was unavailable at time of deliver and will be distributed under separate cover as soon as possible. City of Oak Park Heights 14168 Oak Park Blvd N.• Box 2007 • Oak Park Heights, MNY6$ 439 -4439 • Fax 439 -0574 July 13, 2004 TO: Planning Commission FROM: Eric Johnson, City A RE: Estimate Tax Impacts o Oak Park Heights. Xcel Energy has made application for a conditional use permit for improvements Allen S. King Generation Plant. The applications are to accommodate a $382 million dollar plant upgrade that would install state of the art pollution control equipment. This project is generally known as the MERP (metropolitan emission reduction project) project. The MERP project to begin in 2004, with completion expected in 2007. The peak of construction will be in 2006 and early 2007. At the time of peak construction, up to 300 temporary construction workers could be involved in the project. To fund this project for Xcel Energy (an INVESTOR OWNED UTILITY - for profit), on December 18 2003 the Minnesota Public Utilities Commission approved a "rate rider" allowing Xcel Energy to pass the costs of this MERP project to its customers, Xcel has submitted documentation that makes the following statements relative to the tax implication to Oak Park Heights: 1) The estimated current Property Tax from the AS King Plant is $2 million. Of this amount the City receives $360,000 +/- and is 18 percent of the City's General Fund Revenue. 2) The MERP upgrade will add approximately and addition 2.2 million dollars to the total Property Tax, bringing the total to $4.2 million. Of this amount the City would then receive 756,000+/ -. 3) Xcel has stated, June 28 2004 memo that these figures include that approxi- mately one -half of the project would qualify for the Pollution Exemption as allowed in - 272.02* Xcel further comments that this final determination is subject to review by the Minnesota Pollution Control Agency and also the Dept of Revenue. Further, Xcel's letter of July 6 expressly states that they anticipate that the BOILER AND TURBINE would not qualify for the Exemption, These are the largest elements of the MERP project Should these estimations become reality in 2007 + /- the MERP project would indeed a tax base win for the City of Oak Park Heights, the School District and Washington County. However, the City has not been given a guaranty from Xcel that the BOILER and TURBINE or any other portion of the project will remain taxable. EXHIBIT 13 To date, the City Council has passed resolutions generally supporting the proposal, (03- 12 -61), but has significant concerns on the future of the A.S. King Plant's role in our community as a large taxpayer. This concern is relevant as this tax benefit was demonstrated and represented to Oak Park Heights as a massive incentive (trade-ofi) to allow such plant to be constructed in our community. Accordingly our residents must live with the following impacts - such as: View of such plant in our waterway - depreciating values, Impact on skyline - depreciating values, Coal dust, train noise, long -term remediation (environmental) issues, Significant acreage that cannot be developed due to proximity to Plant, Increased security risk, In effect, if the tax dollars were not being generated in the magnitude that they currently are, the A.S. King Plant facility has limited benefit to the Oak Park Heights community. The taxes being generated should at the very least be considered as fair and equitable compensation for the social, economic and environmental costs to Oak Park Heights and its residents for hosting this facility. Should a plant of this magnitude be proposed today, such development would more than likely not proceed due to local opposition and would certainly not occur without specific development agreements guaranteeing to the host community specific benefits as would be incorporated into an appropriate Development Agreement. *Minnesota Statute 272.02 grants personal property tax exemption to Utilities for the installation of equipment that is directly related to 'Pollution Abatement" However, this exemption has been applied broadly by the Department of Revenue upon the application of IOUs (Investor Owned Utilities) and have included items such as buildings, safety equipment and parking lot paving because of their roles in the overall pollution control effort - even through these are only tangentially related to pollution abatement - at best. City of Oak Park Heights 14168 Oak Park Blvd N.• Box 2007 • Oak Park Heights, MN 55082 • (651) 439 -4439 • Fax 439 -0574 June 10` 2004 Mr. Doug Corblick 15471 58 Street North Oak Park Heights, MN 55082 RE: Property Subdivision (Combining Lots) ENCLOSURE � 4 Dear Mr. Corblick, Per Y our request, the City has no objection to the property at 15471 58 Street North being joined with the vacant abutting parcel to the south and subject to the following items: 1. The resulting lots appear to conform to all zoning standards and setbacks. Non - conforming structures as a result of the split will not be allowed and must be corrected upon written notice from the City. 2. This property has not been part of a minor subdivision within the past five years. • 3. The new property description shall be : LOTS 6 AND '7, BLOCK 1, OAK PARK ADDI'T'ION, WASHINGTON COUNTY, MINNESOTA. 4. This new lot/parcel shall be single and indivisible. 5. Proof of ownership of both lots must be provided to Washington County and the City (copy of deed). This letter along with your Certified Survey should suffice for your filing with Washington County. After you have filed yo s ocuments with Washington County, please provide the City with copies of the as regi d doc egards, Eric A. Johnso City Admit is s j for Cc: ark Vierling Scott Richards Planning Commission Meetings are the 2nd Thursday of each month Public hearin g items are required to be submitted 30 days in advance of the • scheduled meeting date. This date is located in the 2 nd column. Meeting Date Public Hearing Submittal January 8 Decembe 1n nnW .. June July August September October November 10 8 12 9 14 4 December 9 05 January 13 * Note: PLANNING COMMISSION 2004 Regular Meeting Dates Council Representation Schedule May 12 June 10 July 14 August 11 September 15 October 6 November 10 December 15, 2004 ENCLOSURE 15 Council Representative Commissioner Liljegren Commissioner Runk Commissioner Commissioner Oswald Commissioner Dwyer Commissioner Liljegren Commissioner Commissioner Runk November date changed from regular rotation due to government holiday on November 11th - City offices are closed.