By MaryHelen Swanson

The city of North Branch owns about 400 acres northwest of town on which is had intended to create an industrial and residential development.

But the cityís planning commission (PC) is thinking otherwise, at least where the housing development comes in.

Monday night, the PC voted unanimously (4-0) to deny an amendment to the cityís comprehensive plan which would allow a change in zoning in that area from planned industrial to two zones (LU2 and LU3) of residential areas.

This change is needed in order for the city to build what it calls ìworkforceî housing near the future proposed industrial area.

The history of the project called ESSBY
As explained by planning director Al Cottingham, about three years ago the city council began purchasing the land in that area, with a plan to provide an area for more industrial development.

At the time, the city was also working in partnership with other housing agencies to address the need for ìlifestyleî or affordable housing. A concept was developed that housing could be part of the whole plan for this area, affordable housing that would enable workers at the new industries to walk to work.

The city continued purchasing the land in that area until it amassed nearly 400 acres.

A concept plan was drawn up and neighborhood meetings were held, Cottingham continued to explain Monday night.

The preference was to limit the housing to south of 400th Street, but reality forced the plan to include single-family housing units north of 400th.

The city went out for proposals to create a development and there were five responses. Two made official proposals, Cottingham noted, and the city moved forward with the Heartland Group on the development of a concept plan for the property.
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Heartlandís concept included homes north and south of 400th.

The problem is that the city adopted a comprehensive plan in 2003 that went on the assumption that 400th would act as a buffer between the new industrial area and residential living.

Now that the city is considering residential development to the north of 400th, the concept will not fit into the cityís comp plan unless it is amended to include the rezoning.

If the amendment was approved, the new dilemma would be how many homes should be north and how many south of 400th.
If the amendment was recommended for approval by the planning commission, the city council would have to approve it with a super majority - 4/5th vote.

For the actual rezoning, the councilís vote could be a simple majority.

Task force offered report to council
City Administrator Joe Lynch brought more background to the discussion Monday night. He noted that a housing task force had studied the need for affordable housing and provided its findings in a report, but that report was never officially accepted by the council.

The affordable housing the task force was looking at fell in the $125,000-$140,000 range. It was a city goal to have 60 affordable units in the development.

It doesnít appear that homes could be built in that price range now. And it appears the number of homes may have to be punched way up. Why?

The cityís predicament
City finance director David Stutelberg reminded the PC members that the city is now in debt for land purchase in the ESSBY development (which is named for the initial of the property owners of the land purchased) to the tune of $7 million.

Add on to that another $3.5 million for street and utility improvements to the area and you have a city with a problem. If the city does not do 100 acres of residential development, there will be a big impact on city taxes, Stutelberg cautioned.

When one PC member asked how this could have snowballed to the point where itís at now, Lynch swiftly interjected that it did not snowball, it became a reality.

There is a need now to have a certain number of residential units now, he said.

Stutelberg noted that now the land in the ESSBY project will have to sell for $58,000 an acre. He also noted that 15 acres in the project will have to be set aside for a future interchange over I-35 on 400th.

Even with all this information, the PC members couldnít agree with the amendment to allow the eventual rezoning.

Member Kurt Liebenow felt it would be poor planning and he said it doesnít make sense to him. Doylene Voligny was concerned with residential so close to industrial. There was concern for vehicle accesses and at least one PC member felt it was creating a ìresidential island.î

The PCís recommendation will now go to the city council.
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The North Branch City Council will hold a regular worksession Wednesday, Aug. 17 at 6:30 p.m. and a special worksession Thursday, Aug. 18 at 6 p.m. The amendment issue is not a part of those agendas.

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