SUPPLEMENTAL INFORMATION Spot Zoning Land Values Traffic Safety

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1 SUPPLEMENTAL INFORMATION Spot Zoning Land Values Traffic Safety January 31, 2014

2 FOREWORD The purpose of this document is to provide a base of information to spur and support discussion relating to four concerns raised by the OMC Study Group: (1) spot zoning (2) land values (3) traffic (4) safety. This information is not intended to assume a certain position of the OMC Study Group. Lastly, discussion points included in this document are the final four discussion points raised by the OMC Study Group at the initial scoping meeting in December. If OMC Study Group members would like to discuss additional concerns, please contact Patrick Brama the City would be glad to facilitate additional meetings. DEFINITIONS: Subject Property: Nowthen Boulevard, 20.5 acres, Two Parcels, City Owned Land Page 2 of 10

3 SPOT ZONING Several residents indicated using the Subject Property for a data center would be considered spot zoning. City staff had a chance to review a potential data center development, located on the Subject Property, with the League of Minnesota Cities (LMC), the City s Planning & Zoning Division, the City Attorney and a number of metro cities experienced with data centers developments located adjacent to residential areas. Considering the follow factors, City staff does not believe the proposed data center development is a violation of spot zoning: 1. Large size of the Subject property, 20.5 acres. (spot zoning is concerned with small parcels) 2. City is developing the Subject Property for a rational use and a public purpose (fire station funding, economic development, removal of tax exempt property, removal of substandard buildings, low impact user proposed) 3. Previous/anticipated use was either an middle school or municipal center complex (both higher impact users than a data center) 4. City would enforce strict land use regulations to ensure a data center use would transition/be compatible with surrounding properties. (compatible site layout, compatible building design, mitigation of traffic and noise concerns, use of CUP, etc.) 5. City would pass a Comprehensive Plan Amendment before moving forward with a Zoning Amendment. SPOT ZONING DEFINED: Rezoning of a lot or parcel of land to benefit an owner for a use incompatible with surrounding land uses that does not further the comprehensive plan. Allowing for a use in a residential area that has excessive noise, glare and traffic would be a concern. Staff has the following comments: NOISE: State imposed noise pollution regulations exist for all Minnesota cities. Specific standards exist for residential areas. The Subject Property would be regulated by the State (MPCA) identically to any other use located adjacent to a residential area (including single family residential). Lastly, the City is considering requirement of various additional noise mitigation measures to avoid any potential noise issues from a data center (hours of operation for generators, proper screening, CUP, etc.). GLARE: In summary, all exterior lighting for a data center will require review and approval by the City (staff, Planning Commission and City Council approval). The review Page 3 of 10

4 and approval process is based on a required photo metrics plan (lighting plan included in a formal site plan review process). Because surrounding properties are residential, no light bulbs emitting 150 watts or greater will be allowed to freely shine to adjoining properties. Said 150+ watt light bulbs will need to be aimed away from residential properties and towards the ground. See City Ordinances, Zoning Code, Section , Paragraph E2, for details. Considering existing City light pollution regulations, the proposed large building setbacks and the nature of data centers (desire to be physically hidden) a data center would not produce significant light pollution. TRAFFIC: A data center would produce significantly less traffic than any previous or proposed use of the Subject Property (residential, municipal center campus, elementary school, etc.). Traffic resulting from a proposed data center would only take place on internal, private, roads. Road access to the Subject Property would come from County State Aid Highway (CSAH 5), not existing residential roadways. STAFF NOTES: spot zoning is not addressed in State Statute; it is a part of case law and planning literature only. Appendix A includes legal information and case law regarding spot zoning. Appendix B includes additional information related to zoning in Minnesota. Page 4 of 10

5 PROPERTY VALUES A number of residents indicated the establishment of a data center development on the Subject Property will significantly reduce the value of adjacent/nearby properties. City staff had a chance to review this concern with the City Attorney (Ratwik, Rosak & Maloney P.A.) a Residential Appraiser (Anonymous), a Commercial Broker (Anonymous), the City s real estate broker (CBRE) the Anoka County Assessor and the League of Minnesota Cities (LMC). Below is a list of summarized comments. Appendix C include formal opinions from the City Attorney and CBRE. This accusation is very subjective and very challenging to quantify. A large number of variables effect the value of property; and, they change over time; and, they change based on perspective. Brokers/experts the City contacted were unable to make a firm quantified opinion related to this acquisition. A substantial quantity of case law exists related to this accusation. In general, Courts have consistently ruled against Cities that have made landuse regulation decisions based solely on this accusation. Most case law indicates this accusation is subjective, unclear and lacks legal basis. This accusation likely cannot legally standalone there must be a cause of action (for example, spot zoning). Appendix D includes legal information and case law regarding land values. Understanding what base comparison surrounding property owners are utilizing to determine perceived changes in value is important. Examples of valuation comparisons are listed below with general comments. COMPARING X USE OF SUBJECT PROPERTY TO A POTENTIAL DATA CENTER DEVELOPMENT. X.1 Large Open Space/Minor City Use Subject Property was not anticipated or zoned for a large public open space or a park. This is an insufficient and irrelevant comparison. X.2 Single Family Residential Subject Property was not anticipated or zoned for said use. This comparison is subjective and arbitrary. X.3 Municipal Campus/Middle School Subject Property was anticipated or zoned for said use. This comparison is subjective and arbitrary. However, this comparison is the most relevant. Page 5 of 10

6 Staff Comments (land values cont.): A data center is a lower impact use than either proposed/anticipated uses for the Subject Property (municipal center campus or middle school). Data centers yield significantly less traffic, significantly less employment, higher quality buildings and less noise than either proposed/anticipated uses. In general data centers want/desire to remain as low profile/hidden as possible from surrounding properties. For the reasons stated, it would be very challenging to support an accusation claiming a data center would have a negative effect on surrounding properties values in comparison to the proposed/anticipated uses (municipal center campus or elementary school). In an effort to mitigate this concern, Staff would emphasize the importance of quality land use regulations (including proper transitioning standards) and quality building design if the Subject Property were to be developed for a data center. Staff recommends the City update their comprehensive plan to reflect desired zoning before moving forward with either development scenario (residential or data center). Page 6 of 10

7 TRAFFIC A number of residents raised concerns relating to the traffic impact a data center development located on the Subject Property would have on surrounding/nearby properties. Some residents were concerned data center employees would drive carelessly through surrounding neighborhoods causing unsafe conditions for both pedestrians and children alike. This concern was reviewed with the City s engineering department, planning department, various data center users and various cities experienced with data centers. Below is a list of summarized comments. Data centers require an abnormally low quantity of employees in comparison to the size of a data center facility. A single data center typically ranges from total employees. If developed for a data center, the City would require access to the Subject Property from Nowthen Boulevard. A data center would not utilize existing residential roads for access to the Subject Property. After construction, data centers will generate minor truck traffic during weekday business hours. Cities experienced with data centers being located adjacent to residential areas have not reported any complaints related to traffic (Chaska, Elk River, Anoka). Based on engineer s estimations, a data center development would have significantly lower traffic impacts on surrounding properties than would a residential development. See below. Estimations: Data Center Development Residential Development Daytime vehicle trips per day 470 vehicle trips per day 4*per employee (12-24) 10*per household (47) Weekend 8-16 vehicle trips per day 470 vehicle trips per day 4*per employee (2-4) 10*per household (47) Access Nowthen Boulevard Helium Street (Potentially Nowthen Boulevard) Road Type Private Public Source, Traffic Estimations: Institute for Transportation Engineers (ITE), Trip Generation Manual. Page 7 of 10

8 Staff Note: In general, for safety reasons, Anoka County is interested in eliminating access points from Nowthen Boulevard, which includes access to the Subject Property. If the Subject Property was developed for a data center, the City would be an advocate for keeping access to the Subject Property from Nowthen Boulevard. Based off initial discussions with Anoka County and the City Attorney, the City is confident retaining access to Nowthen Boulevard will remain if the site was developed for a data center user. Page 8 of 10

9 SAFETY A number of residents made both specific and general comments related to how a data center could make the Subject Property, and the surrounding neighborhood, unsafe for children and pedestrians. Listed below are responses from City staff for both general and specific safety concerns raised by surrounding property owners. General Comments: Generally, the purpose of Ramsey s land use regulations is to protect the health, safety and welfare of the entire community. With that in mind, the City utilizes a number of approaches to ensure any development on the Subject Property will be safe (land use regulations, development review process, building code, maintenance enforcement, law enforcement, etc.). If a data center were constructed on the Subject Property, the City would work within the framework/sprit identified above. As stated, generally, a data center development is one of the lowest impact business type uses in the market. Data centers yield low traffic, low employment, low noise pollution, low light pollution and high quality buildings. Additionally, data centers want/desire to remain as low profile/hidden as possible from surrounding properties. Keeping in mind the City would pay close attention to any safety impacts a potential data center development would have on surrounding properties, it can be reasonably assumed, a data center will not create significant safety hazards. Specific Comments: Elimination of existing open space will force kids to play in roadways If the Subject Property was developed for a data center user, the City would be willing to consider dedicate a portion of the Subject Property for public open space. Hazardous Electric Magnetic Field EMF Staff discussed this item with Connexus Energy. If a data center were placed on the Subject Property, there would be no health or safety concerns regarding EMFs. Connexus Energy stated a power line required for a data center would not be of significant/abnormal size. A power line running to the Subject Property would have no different EMF than businesses located in the City s business parks, retail areas or The COR. A power line running to the Subject Property would be placed in road right of way (ROW). Furthermore, a common concern from residents regarding EMF from power lines is the potential for a mild humming noise. Because any power line run to the Page 9 of 10

10 Subject Property would be placed under ground, and would be of insignificant size, zero noise pollution would occur. Storm Water Ponding, Dangerous for Children Today a large stormwater pond is located on the south east corner of the Subject Property. Said stormwater pond is beyond adequate size to serve the entire Subject Property at full development. A data center development located on the Subject Property will not create demand for additional stormwater ponding. If fact, it is possible the existing stormwater pond may be reduced in size or reconfigured by a future developer. NOTE: a recent City improvement project that coincided with a roadway connection included a stormwater pipe that will allow stormwater to be directed towards other regional stormwater ponds. With the above information in mind, the City has not received complaints or concerns regarding safety due to the existing stormwater pond. Therefore, because the proposed data center would have a similar or smaller sized stormwater pond, it would be logical to anticipate the absence of safety issues to continue. Barbed Wire/Razer wire Fence The City in not aware of a data center surrounded by barbed or razor wire fencing in Minnesota. The City in not aware of any data center in Minnesota that includes perimeter fencing, of any type. The City does not typically require fencing around traditional stormwater ponding either. Significant Traffic Please see previous section for details. Traffic from a data center would be mild and directed to Nowthen Boulevard rather than residential roads (Helium Street). Page 10 of 10

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