1997-06-11 Sketch Plan Approval and Rezoning
-PIL 1
LAND DEVELOPMENT COMPANY
June 11, 1997
Planning Commission, City Council members, and City Consultants
c/o Mr. Gary Hale,
City Administrator
5975 Main Avenue NE.
Albertville, MN 55301
RE: Sketch j)Jan aDDroval and Rezonine of Center ~al(8 oarcel and Cedar Creek
Golf Course area from R-tA to pun
Dear Mr. Hale:
This letter serves to confirm our conversations regarding the goals for the submissions of
the preliminary plans for the golf course and housing project. Since initial plans were
submitted in 1995, concepts have evolved" Denials in 1996 were largely due to unknown
annexation issues and a sentiment that the golf course was not "real" or feasible, and a
request for a $3,00,000 letter of credit. Since that time, plans evolved to demonstrate the
conunitment to the project, and proposals to provide assurance that a course will get built
have been solidified. Specific actions which have taken place include the following:
1. Retain Williams Gill Golf Course Architects for further routing design;
2. Secure more options and purchase agreements on surrounding land parcels to
create the best routing alternatives possible;
3. Retain Continental Golf (Izatys, Wedgewood) for a lender ready market and
feasibility analysis for a 9 hole concept and an 18 hole concept;
4. Retain Rick Harrison consulting planners for master plan assistance and
creative neighborhood design;
, 5. Listen to concern of Council members regarding multiple faniily attached
housing within the golf course pockets, and maintain a maximum of SF
dwellings fronting tile project, with no lots having less than 80' width @ setback;
6. Assist NA C in their efforts to map balance of land, delineate all wetlands in
Albertville west of Highway 19 on our sites;
7. Locate expert management for a golf course facility, preliminary discussions
with Hollis Cavnel"'S group PLMG. (I-IoUis is tbe tournament Director for the Burnett
Senior Classic @ Bunker Hills and our partner on a ne" Blaine golf project);
13736 Johnson Street NE . Ham Lake, MN 55304 . 757.9816 · Fax: 757-4094
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The submitted project clearly meets everyone the 8 criteria (a.h) stated in the
Purpose section o:tthe PUD ordinance. This plan will provide an excellent golfing
experience, a vastly improved s'l\bdivision living experience, and an opportunity to
provide additional life cycle housing" Without a golf course, Albertville has zero reason
to attract any move up bllyel's. The value of paying $50,000 per lot to live on Mud Lake,
in the Elk River school district is dubious" The approval of the Meadows for Lyman
proves that a larger lot subdivision can be designed without an improvement in livability
or desirability,
The desirability to live in Albertville is be to be close to your school. By approving the
golf course and density transfers as proposed, the amenity to attract a reasonable share of
move up oriented home buyers along the golf course is achieved. Permits in the Parkside
Third development shows that buyers are willing to spend $115,00 to $170,000 within a
typical R~l subdivision bounded by wetlands to the north and B-3 zoning to the east.
It is important to remember that the bUilding pennit value and marketing prices of
builders is not the value of the subdivision 5 years from now" Very few buyers ever buy
the price leader, and most have the basement, third or fourth level, decks and landscaping
to complete at a future date. Even the least expensive house will be able to add $15,000.
Projected benefits of the golf housing blend are:
. Adding of new business, managed by successful entrepreneurs, to create a for profit
facility which only enhances the tax base and surrounding land values. The golf
Cll.lbhouse would have the ability to be a nlll service restaurantlbar and catering
facility to encourage tournaments, weddings, corporate outings and other promotional
events" This will require a liquor license"
. Restore and improve water quality holding capacities at 1/2 the pre developed rate (if
required interim measure is adopted). It is expected that up to 2 additional acres of
wetland mitigation will be able to be created after your approval of the concept. This
acreage would be found during the final design phase of the golf CO\lrse. The Center
Oaks plat as proposed created one acre of mitigation credit. The Cedar Creek North
Plat as proposed created one acre of mitigation credit.
. Greater diversity of age and buyer demographics and housing products, creating a
spreading of demand for school and other governmental functions. An entire
expansion of R~ lA lots, regardless of absorption speed, will tend to create solely
homes for families of similar age brackets, with a likely boom bust cycle for schools
and associated sel'vices; When your families in Albertville age" where will they move
to? St. Michael?
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. Greater open space preservation and creation which is permanent and usable for City
marketing of life styles, and business opportunities;
. Less cost to the City for long tenn and short term road and utility maintenance costs;
Guarantees to be within the PUD develoDment contract:
. Build all trails along Karsten Avenue 1 year after initial street construction, if
maintained by the City and placed on the trails plan.
. Have driving range open within 2 years of grading start;
. Have the first nine holes open within 3 years of grading start;
. Withhold Phases 3 and up of each neighborhood from final plat approval until a golf
course achieves the grow in period" (It is common belief that a developer only truly
profits when the last quarter of lots can be sold" This guarantees delivery of a facility
in order to "profit" from the lot and borne sales portion of the development.) At about
25 lots per phase this represents $2A7S,000 dollars of value in lot sales withheld at
$33,000 for 75 lots.
. Pilot will grant to the City an open space easement over a portion of the golf course to
be held in escrow at a title company for release back to Pilot when the golf course is
operational. This protects the City from the land becoming more housing if the golf
course failed to materialize after safety feature 1.
. The property is currently cropped and will be cropped continuously until the change
over to golf occurs.
. Fee structure of the golf course will offer a discount to residents of Albertville per 18
hole golf round.
Tradeoff.s r~uested bv Pilot to enable oroiect to occur:
. Transfer 12 to 14 units of density from Cedar Creek South to create a small pocket of
town homes as a transition between the R-5 zoning and the single family coving
concept, north of proposed 63rd Street. .
. Transfer the 8 units of housing possible on Center Oaks southwestern upland to the
balance of the Center Oaks SF project; ( See concept D for Welter - Center Oaks)
. Transfer SF density of Cedar Creek South and Welter R-1A concept to MF
Townhome parcels as identified. This transfer creates no net increase in density over
what the comprehensive guide plan density would be for the projects developable
acreage and represents a decrease from the potential R-IA concepts C & D.
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. Vacate Kadler with 51. Michael. Approve long cul de sac to build "exclusivitv to
peninsula area" sunounded by golf. If access mandated to Hwy. 118, agree~ent by
Albertville to plow road to Hwy. 118 reg~ess of political boundary. " . r
. Approve a blend of lot sizes to SF neigh~rhoods starting no less than R.l size and
allowing some 80 foot lot widths at setback with 10' side yard setbacks and3\)'
minimum front yard setbacks. The Cove concept creates lnany greater setbacks than.
30' in order to enhance the street appeal. }
. Approve the coving concept fer subdiyision use under. the PUD approval prQ~ess.
Refer to Planning COmnllssidn conditions of amoval for lot size mix. ~
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. Amend trunk sewer area charges for all land witpin the master plan to be apPortioned
per developable acre. Order plans and specs fo{the Lift station referenced in the area
charges ordinance of $500 per acre to determine exactly the cost. Amend ordinance
or this project to pay as we go to final plat for th~ lift station fees. No lots, no
demand. To date, Kenco, Pilot, Feneis, Little Mountain, and others have furnished
100 acres of fees for lift station escrow at $500 per acre or $50,OQO, more than enough
to finish drawings and create a bid for 1998 work. \,<, .
. Hold any residual park dedication fees level regardless of time of final plat in
exchange for Pilot building the golf course as an open space amenity, land dedication
in excess of 5% and potential constmction of trails along Collector streets at the time,
of road construction, fina1lift,''-
. Hold code and ordinance criteria for the project current with 1997 requirements.
. Approve Phase One of the Center Oaks proposal for 1997 grading and road
construction. Without approval by late August, work is not likely to yield paved
streets, meaning no more lots until July of next year.
We are projecting the following schedule:
June 18 - Submit entire package for consideration by PC in July & early Au~gp6(
July 5, 19. Planning Conunission review of package for Concept approval/ ~-
approval of Center Oaks Ph~se One .r~, il
August 4, 18 - City Council meetings to disbuss and approve concept and p~.__~ plans
and enter into PUD I Development agreement negotiations. Approve \
grading pennit for center Oaks Golf Course working drawings begin... . .
September'; - Pipe work for Karsten and Jenda starts. ~
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Sept. 15,29 - Approve PUD Agreement, Grading start and ground breaking for Golf
course driving range clubhouse area.
~f the golf course project is rejected this timet Pilot will move to implement the Concepts
Cand D in your packets. The chance to create something exciting does not always occur
not repeat itself. Please work with us to mutually benefit from the plans of an excellant
team. Please contact us with any questions you may have at any time. Thank you in
advance for your comments and consideration.
s;a;r
Donald Jensen
Land Development Director & Consultant to Center Oaks
Attachments: Gill Metno, Feasibility study, routing studies,TownHome study,sketch plan of entire
.project with notes,
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