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HomeMy WebLinkAbout2004-07-24 CC Meeting Packet EnclosureMeeting Date: July 27th, 2004 Enclosed are four items: Oak Park Heights Request for Council Action Agenda Item Title: Xcel Energy MERP CUP/Variance/Grading Time Required: 10 minutes Agenda Placement: New Business Originating Department/Req,Eric J son C Administrator Requester's Signature Action Requested: Co i. -r and A Background/Justification (Please in e any previous action, financial implications including budget infor ion and recommendations). 1. Memo from Eric Johnson - regarding tax base impacts 2. Scott Richards Planning Commission Memo 3. City Council Resolution 4. Planning Commission Resolution ENCLOSURE 08 ***please also bring your materials as distributed to the Planning Commission*** City of Oak Park Heights 14168 Oak Park Blvd N.• Box 2007 • Oak Park Heights, MN 55082 * (651) 439.4439 • Fax 439 -0574 July 22, 2004 TO: City Council Members FROM: Eric Johnson, City A RE: Estimate Tax Impacts of t ME M • Oak Park Heights. Xcel Energy has made application for a conditional use permit for improvements Alien 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 temparar 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 +IA 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+1-. 3) Xcel has stated, June 28 2004 memo that these figures include that a pp roxi- 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 MEEK' 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. 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 -off) 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. The tax income of the Alien S. King Plant today adds $354,000 +1- to the City General Fund, which is approximately 18.5 percent of the City's total General Fund revenue. This figure has experienced a significant decline over the past decade. In 1994 the taxes paid by Xcel Energy (a majority of which is the actual Plant) to Oak Park Heights was approximately 56 percent of the City's total tax capacity, today it less than half of this figure. This decline has generally been due to three primary factors: 1) change in state law on how such plant are taxed - class rate compression; 2) the creation of a pollution-control exemption from the payment of personal property tax; and 3) depreciation of equipment. Accordingly the City has requested clarifications from Xcel as to their expectation that the boiler and turbine rehabilitation/replacements as to be included within the MERP - will not qualify for such 272.02 tax exemption nor will they seek such exemption. These replacements were required to be completed, regardless of the balance of the MERP as both items had exceeded their anticipated lifespan. And that with such upgrades, the Plant would be able to operate at its anticipated capacity. Admittedly, while the new facilities may be more efficient, these (in our opinion) in of themselves do not meet the definition of Pollution Abatement as required. Xcel has supplied the City with a letter, dated July 6 2004 indicating that it anticipates that the boiler and turbine would in fact be taxable. Building Permits The City will be required to expend significant hours and engage the services of outside consultants to review and approve the building permits that would be required to construct the proposed facilities. Each structure will require City approval. Please note that the revenues derived from the building permit applications will be significant and will, at a minimum, fully cover City costs per structure and will be implemented as authorize by City Ordinances and State Law. XceI E 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 sked to further clarify the tax implications of the MERP project for the surrounding din 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 l 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 the governing agency. • help I appreciate rec3ate the hel and advice we continue to receive from Oak Park Heights in support of this project if you have a questions uestions and concerns about the property tax or the MERP p roject, please feel free to contact me. Sincerely, re Mark J. Fritsch Director Alien S. King Generation Plant 1103 King Plant Road Bayport, Minnesota 55003 -1000 EXHIBIT 12 -1 " 4 1 ) x June 28, 2004 City of Oak Park Heights, MN Mayor, Council Members, Management and Staff 14168 Oak Park Boulevard No. P.O. Box 2007 Oak Park Heights, MN 55082 -2007 Dear City of Oak Park Heights Representatives, 1103 King Plant Road Bayport, Minnesota 55003 -1000 ] would like to take a moment of your time to share with you information regarding the positive impact the Metro Emissions Reduction Project (MERP) will have on the surrounding areas we serve and particularly the City of Oak Park Heights. Our MERP communication effort strongly addressed the positive environmental changes that will be occurring as a result of the project, but as a p ower plant host city we are aware of your concern regarding the direct benefit that you will enjoy. There will be several changes occurring at King plant including remodeling and improving much of the existing equipment, adding new operating equipment, as well as the new environmental equipment that will serve the plant. Over the past many years, King plant's management and employees have appreciated the close and positive working relationship we have had with the City of Oak Park Heights. As Director of the A. S. King Plant, ] feel a strong commitment to continuing and strengthening this relationship. To meet this goal 1 feel it is important to share information, as it exists, regarding the tax base revenue the city of Oak Park Heights may anticipate receiving following the completion of the •MERP project at the A. S. King plant. This letter provides an estimate of the property tax revenues from the King plant reflecting the impact of the MERP project. The actual property tax could be different from this estimate if, for example, actual project costs are different from current estimates. Estimated total property tax from the King plant for 2005 (based on taxable value at 1/02/04) = $2.0 M The MERP project started in 2004 and will be complete in 2007, with most of the project costs failing in the years 2005 — 2007. The work affects the property taxes paid in the years 2006 through 2009, but the effect on 2006 taxes is minimal. the period from 2006 to 2009, estimated property tax from King is projected overt p to increase from about $2.0 M paid in 2006 to about $4.2 M paid in 2009. If the actual ro'ect cost is less, the property tax amount will be less. For p � in 2009 would be about at 10% less project cost, property tax payable i example, p � S M. Also, these tax figures reflect XceI Energy's estimate that about half of the total value of the MERP project would qualify for pollution control tax exemption. The MPCA makes the final determination of what equipment qualifies as pollution control tax exempt. information with you 1 ho In sharing this info y hope 1 have addressed some of your questions and concerns. However, 1 want you to be aware that as our process moves forward we remain available to address your questions and comments. Sincerely, aG. Mark J. Fritsch Director, Alien S. King Generation Plant CITY OF OAK PARK HEIGHTS, MINNESOTA PRINCIPAL T S (Ten Largest Taxpayers) Taxes Payable i (UNAUDIThD) Percent of Percent of Total Net Total Tax Market Market Tax Capacity Property Taxpayer value Value Capacity Value Classification Northern States Power Oak Park Partners Wal -Mart Stores Inc K -Mart Corporation Oak Ridge Place Port of Sunnyside Oak Park Associates Greenbrier Partners Stillwater Ford Lincoln Mercury Routson Investments Totals SOURCE: Washington County Auditor - Treasurer Taxation Division. 74 $79,920,200 38.9% $3,676,328 56.9% Public Utilities 9,836,400 4.8% 450,874 7.0% Commercial 2,588,000 1.3% 117,448 1.8% Commercial 1,940,700 0.9% 87,672 L4% Commercial 2,451,000 1.2% 83,334 1.3% Res. over 3 units 1,415,700 0.7% 63,523 LO% Commercial 1,656,0W 0.8% 56,304 0.9% Res. over 3 units 942,000 0.5% 32,028 0.5% Res. over 3 units 693,000 0.3% 30,278 0.5% Commercial 635,000 0.3% 27,610 0.4% Commercial $102,078,000 49.7% $4,625,399 71.5 %n NOTES: (1) This list is based only on parcels paying more than $15,000 net tax ( If a taxpayer has property consisting of more than one classification, only one is shown. Table 5 CITY OF OAK PARK HEIGHTS, MINNESOTA DRINCIPAL TAXPAYERS (Ten Largest Taxpayers) axes Payable in 2003 (UNAUDITED) Percent of Percent of Total Net Total Tax Market Market Tax Capacity Property Value Value Capacity Value Classification Taxpayer Xcel Energy Inc $79,770,000 19.6% $1,593,668 VSSA Housing 24,159,000 5.9% 356,714 Prudential Insurance Co. of America 10,215,3 00 2.5% 203,556 SC MaII LLC 10,237,500 2.5% 203,250 Menards, Inc 8,043,800 2.0% 160,126 Wal -Mart Real Estate Business 6,086,400 1.5% 120,978 W.A.T.E. Enterprises, Inc. 4,382,000 1.1% 86,890 aduenz Dealership Properties LLC 4,155,100 1.0% 81,602 Stillwater Ford, Lincoln - Mercury 3,698,400 0.9% 73,218 Jerden LLC 3,008,500 0.7% 57,920 $2,937,922 49.2% Totals $153,756,000 Total City $406,640,800 70 37.8% SOURCE: Washington County Auditor - Treasurer Taxation Division. $5,974,543 NOTES: (1) This list is based only on parcels paying more than $2,000 net tax (2) If a taxpayer has property consisting of more than one classification, only one is shown. Electric Utilities Res. over 4 units 3.4% Commercial 3.4% Commercial 2.7% Commercial 2.0% Commercial 1.5% Commercial 1.4% Commercial 1.2% Commercial Commercial 6.0% 1.0% Table 5 RE. NORTFIWEST A$$OCIATED COM5lI1.TAF13'S, INC. BACKGROUND Exhibit 1: Exhibit 2: 6775 Wayzata Boulevard, Suite 555, St Louis Park, MN 55416 T+ lephon ; 952,596.9636 Facsimile: 952 95.983 7 plannersanacplanning,com PLANNING REPORT TO: Eric Johnson FROM: Scott Richards DATE: July 9, 2004 FILE NO: 708.02 — 04.08 Ronald Elsner, representing XceI 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 Alen 8. 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 i 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 ro erty is zoned 1, Industrial District in which power generating plants are a p p permitted use. The King plant is also in a .River Impact District which requires a s � � r ■ • r a r i 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: 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 Overall Site Plan Power Plant Equipment Layout Diagram Exhibit 3: Exhibit 4: Exhibit 5: Exhibit 6: Exhibit 7 : Exhibit 8: Exhibit 9: v 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 XceI • 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.C.2 of the Zoning Ordinance, The setbacks proposed for the plant upgrades are consistent with the Zoning Ordinance setbacks specified in Section 4O1.15.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 (SO2) 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 wilt 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 q 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 in project in making its recommehdation. The conditional use permit criteria, found n section 40'1.03.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. 8. The impact on character of the surrounding area. a 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 shalt 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 100 feet, The cooling tower would be 68 feet. 4 Section 40'l .04A4 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, g. 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 nonconforming lands, structures or buildings in the same district, f, The request is not a use variance, 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 M E RP 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. Alt 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 subjectto 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 and RESOLUTION NO. CITY COUNCIL UNCIL CITY OF OAK PARK HEIGHTS WASHINGTON COUNTY, MINNESOTA A RESOLUTION ESTABLISHING FINDINGS OF FACT AND RESOLUTION OF THE CITY COUNCIL THAT THE REQUEST BY XCEL ENERGY 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 AND IMPERVIOUS SURFACE COVERAGE REQUTREMENTS FOR THE ALLEN S. KING GENERATION PLANT BE APPROVED WITH CONDITIONS WHEREAS, the City of Oak Park Heights has received a request from Xcel Energy 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 and impervious surface coverage requirements for the Allen S. King Generation Plant; and after having conducted a public hearing relative thereto, the Planning Commission of Oak Park Heights recommended that the application be approved with conditions. The City Council of the City of Oak Park Heights makes the following findings of fact and resolution: 1. The real property affected by said application is legally described as SEE ATTACHMENT A and 2. The applicant has submitted an application and supporting documentation to the Community Development Department consisting of the following items: follows, to wit: SEE ATTACHMENT J3 3. The subject site is zoned 1, Industrial District in which power plants are a permitted use. The King plant is 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 is to be added to install flood control devices, and a variance from the Zoning Ordinance and St. Croix Bluff and Shoreland Ordinance is required for building height and impervious surface coverage requirements; and request; and 4. City staff prepared a planning report dated July 9, 2004 reviewing the 5. Said report recommended approval of the two conditional use permits and variances for building height, subject to the fulfillment of conditions; and 6. The Planning Commission held a public hearing at their July 15, 2004 meeting, took comments from the applicants and public, closed the public hearing, and recommended that the application be approved subject to the fulfillment of conditions, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL FOR THE CITY OF OAK PARK HEIGHTS THAT THE CITY COUNCIL APPROVES THE FOLLOWING: A. The application submitted by Xcel Energy 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 and impervious surface coverage allowances for the Allen S. King Generation Plant and affecting the real property as follows: SEE ATTACHMENT A Be and the same as hereby approved by the City Council of the City of Oak Park Heights subject to the following findings related to the request for the building height and impervious surface coverage variances: 1. A power generation plant is a unique structure in the City of Oak Park Heights with specific requirements for construction and operation. The design of the structure necessitates the building and structure heights requested for the proper functioning of the plant. 2. The plant stack and portions of the existing structure are constructed at heights that exceed the new structural elements proposed. The new structures will in no way exceed what exists today. 3. The power generation plant provides a public service as to providing clean, safe and dependable energy for the region. The purposes of the plant improvements are to provide state of the art pollution control devices and extend the life of the plant. 4. The slight increase in impervious surface coverage will not negatively impact the drainage patterns or water quality of stormwater runoff from the site. Further, the City Council of the City of Oak Park Heights approves the conditional use permits and variances for the Alien S. King Generation Plant with the following conditions: 2 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. The City of Oak Park Heights reserves its right to collect tax revenue and/or fees on any and all improvements implemented on this site as allowed by law. The City further reserves its right to collect tax revenues and/or fees that occur or would otherwise be recalculated on this project resulting from any statutory amendments or legislative changes. 9. Any other conditions of the City staff, Planning Commission and City Council. ATTEST: Approved by the City Council of the City of Oak Park Heights this 27th day of July 2004. Eric A. Johnson, City Administrator David Beaudet, Mayor 3 A RESOLUTION ESTABLISHING FINDINGS OF FACT AND RECOMMENDING TO THE CITY COUNCIL THAT THE REQUEST BY XCEL ENERGY 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 AND IMPERVIOUS SURFACE COVERAGE REQUIREMENTS FOR THE ALLEN S. KING GENERATION PLANT SHOULD BE APPROVED WITH CONDITIONS WHEREAS, the City of Oak Park Heights has received a request from Xcel Energy 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 and impervious surface coverage requirements for the Alien S. King Generation Plant; and after having conducted a public hearing relative thereto, the Planning Commission of Oak Park Heights makes the following findings of fact: 1. The real property affected by said application is legally described as SEE ATTACHMENT A 2. The applicant has submitted an application and supporting documentation to the Community Development Department consisting of the following items: follows, to wit: and and request; and A RECOMMENDING RESOLUTION OF THE PLANNING COMMISSION CITY OF OAK PARK :EIGHTS WASHINGTON COUNTY, MINNESOTA SEE ATTACHMENT B 3. The subject site is zoned 1, Industrial District in which power plants are a permitted use The King plant is 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 is to be added to install flood control devices, and a variance from the Zoning Ordinance and St. Croix Bluff and Shoreland Ordinance is required for building height and impervious surface coverage requirements; and 4. City staff prepared a planning report dated July 9, 2004 reviewing the 5. Said report recommended approval of the two conditional use permits and variances for building height, subject to the fulfill m ent of conditions; and 6. The Planning Commission held a public hearing at their July 15, 2004 meeting, took comments from the applicants and public, closed the public hearing, and made the following recommendation: NOW, THEREFORE, BE IT RESOLVED BY THE PLANNING COMMISSION FOR THE CITY OF OAK PARK HEIGHTS THAT THE PLANNING COMMISSION RECOMMEIDS THE FOLLOW/NG: A. The application submitted by xcel Energy 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 and impervious surface coverage allowances for the Alien S. King Generation Plant and affecting the real property as follows: SEE ATTACHMENT A Be and the same as hereby recommended to the City Council of the City of Oak Park Heights for approval subject to the following findings related to the request for the building height and impervious surface coverage variances: 1. A power generation plant is a unique structure in the City of Oak Park Heights with specific requirements for construction and operation. The design of the structure necessitates the building and structure heights requested for the proper functioning of the plant. 2. The plant stack and portions of the existing structure are constructed at heights that exceed the new structural elements proposed. The new structures will in no way exceed what exists today. 3. The power generation plant provides a public service as to providing clean, safe and dependable energy for the region. The purposes of the plant improvements are to provide state of the art pollution control devices and extend the life of the plant. 4. The slight increase in impervious surface coverage will not negatively impact the drainage patterns or water quality of stormwater runoff from the site. Further, the Planning Commission recommends to the City Council of the City of Oak Park Heights the conditional use permits and variances for the Alien S. King Generation Plant with the following conditions: 1. )(eel shall work with the Andersen Corporation, MnDOT, and the City as the work progresses to analyze any traffic concerns for Highway 95. 2 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 P lans 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. Recommended by the Planning Commission of the City of Oak Park Heights this 15th day of July 2004. ATTEST: Eric A. Johnson, City Administrator 3 John Dwyer, Chair