Planning Commission Meeting - February 5, 2025
https://www.applevalleymn.gov/492/Meeting-Agenda-Packets
1. CALL TO ORDER 0:55
2. APPROVE AGENDA 1:03
3. CONSENT AGENDA 2:22
4A. MIXED USE BUSINESS CAMPUS ZONING DISTRICT ORDINANCE 3:05
4B. APPLE VALLEY TECHNOLOGY PARK 34:29
6A. REVIEW OF UPCOMING SCHEDULE AND OTHER UPDATES 3:35:11
7. ADJOURN
Based on the context provided and the dialogue within the transcript, here is the formatted version with speaker names identified.
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**[0:00] [Music]**
**[0:55] Chair Kurtz:** Good evening. I call the February 5th, 2025, Apple Valley Planning Commission meeting to order. First item of business is the approval of the agenda. Any changes from staff?
**[1:05] Tim Benetti (Community Development Director):** Good evening, Chair, members of the Commission. For tonight, per the applicant's request, we are pulling Item 5A, the Rockport LLC Mixed Business Campus Comp Plan Amendment. That will be forwarded to a future meeting to be determined later. Thank you.
**[1:27] Chair Kurtz:** Commissioners, can I have an approval?
**[1:30] Commissioner Scanlan:** I recommend approval of the agenda.
**[1:32] Commissioner Sandell:** Second.
**[1:43] Chair Kurtz:** Approval made by Commissioner Scanlan, second by Commissioner Sandell. Any questions? If not, all in favor say "Aye." (Group: Aye). Motion passes. So, before approving tonight's agenda, if anybody is here in regards to the on-sale liquor text amendment, that has been cancelled for tonight. So, I'm announcing that the public hearing for the on-sale liquor text amendment has been cancelled. The application for this request has been withdrawn. All other public hearings set for tonight's meeting will proceed as shown on the agenda. The next item of business is the approval of the consent agenda.
**[2:30] Chair Kurtz:** Consent agenda items are considered routine and will be enacted with a single motion without discussion unless a Commissioner or a citizen requests to have any item separately considered. It will then be moved to the land use action items for consideration. Can I get a motion of approval?
**[2:48] Commissioner Scanlan:** Madam Chair, recommend approval of the consent agenda.
**[2:50] Commissioner Halas:** Second.
**[2:53] Chair Kurtz:** Motion made by Commissioner Scanlan, seconded by Commissioner Halas. Any questions? If not, all in favor say "Aye." (Group: Aye). Oppose, "Nay." Motion carries. That brings us to our public hearings. We have two public hearings tonight. The first one is going to be on Mixed Use Business Campus zoning, and that will be Tim Benetti. So, I will now open the public hearing for agenda item 4A. The Affidavit of Publication for the notice of public hearing is available for inspection in the planning department. Everyone wishing to speak at this public hearing should be sure to fill out the attendance roster in the back, including your name and address, so that accurate records can be maintained. We will begin the procedure with a brief presentation by City staff, followed by a presentation by the petitioner of the hearing. Upon the conclusion of the presentation, City staff will ask to comment on the proposal's conformance with pertinence regulations and policies. After that, comments will be taken from the general public. Mr. Benetti.
**[4:03] Tim Benetti:** Thank you, Madam Chair, members of the Commission. Before you tonight is actually a City-generated request for a creation of a new Mixed Use Business Campus ordinance or district. This is the public hearing that was as announced. I'll go through a very quick presentation and then you can have the comments right after. [Presentation details regarding M-UBC District and 2040 plan]. We are requesting this amendment to Chapter 155 of City code to establish the M-UBC. This district will incorporate a mix of permitted, conditional, and accessory uses...
**[15:36] Commissioner Scanlan:** Madam Chair. Tim, so essentially what we're doing is just, like you said, this isn't specifically for the Rockport site, in the fact that this is going to be an outline of a set of standards for any larger parcel of land within the City of Apple Valley, correct? And then we're going to simplify... dealing away with the percentages and the conceptual outline we had previously with the 2040 plan?
**[16:24] Tim Benetti:** Commissioner Scanlan and members of the Commission, that request is being considered under a separate comprehensive plan land use guidance amendment. The district here that we're creating will still be consistent with that current 2040 plan...
**[17:12] Commissioner Melander:** Thank you, Madam Chair. Tim, yes, so basically, kind of for a point of clarification, it's—we're looking at a potential land use designation, a land use classification. In the context of the area that's the focus of an application tonight, you're basically converting what is a sand and gravel land use designation to something that can be open and made available for development, correct?
**[18:44] Tim Benetti:** Commissioner Melander, if you look at your screens... the intent is to turn that basically into a new Mixed Use Business Campus if it's applied for. Right now, sand and gravel would not allow for any type of commercial recreational use.
**[19:40] Commissioner Melander:** And kind of a follow-up question. This is the type of designation—an amendment that happens when a gravel pit has reached the end of its useful life? Now you're trying to make it open for reclamation and development?
**[20:19] Tim Benetti:** Yes, that is typically what happens on areas where when you see gravel pits being reclaimed, they get turned over into a potential development site.
**[21:28] Commissioner Melander:** One more follow-up question. As opposed to other areas which have been developed for residential uses... this is just focusing on more commercial purposes?
**[21:46] Tim Benetti:** Potentially, yes.
**[21:48] Sharon Hills (City Attorney):** Just for clarification, we're not talking about rezoning the sand and gravel right now. It is merely creating a zoning district in our code so it is consistent with the comp guide.
**[22:04] Chair Kurtz:** Thank you. Any other questions? If there are any residents who would like to speak at this public hearing, please come to the podium.
**[22:38] Cindy DeVries:** Thank you, Madam Chair and Commissioners. My name is Cindy DeVries. I live at 169 Strese Lane here in Apple Valley. I would like to ask that the definition of a data center be revised... that data centers can be all sizes... I'd like to see that amended to max those data centers out at 400 square foot in footprint, if I may.
**[23:23] Chair Kurtz:** Thank you. I should have given the applicant a chance to speak first. My apologies.
**[23:36] Matt Duffy:** Good evening, Planning Commission Chair. My name is Matt Duffy. I represent Rockport LLC. I want to clarify a couple of things on the record. Rockport LLC owns the land that is currently the gravel pit. AVR Inc. has been sold... it is now a tenant. For the record, Rockport is not in favor of the draft ordinance without the amendments it's requesting. We are trying to keep this property marketable and provide a development the City will be proud of.
**[28:51] Chair Kurtz:** Anything else? Any additional questions from the last meeting for Mr. Duffy? Thank you. Back to the public.
**[29:10] Lou Beerline:** Hi, Lou Beerline. I'm on 12450 Drennen Trail. I'd be really disappointed if the Valleywood Golf Course went down. I've got a lot of questions here. First is the water usage.
**[29:40] Chair Kurtz:** That’s the next hearing. This is just the zoning district.
**[29:43] Lou Beerline:** Okay, I'm ahead of myself. My concern is that data centers weren't in, and now you're saying they are. What am I as a taxpayer going to get out of having a data center there?
**[30:25] Chair Kurtz:** That will be on the second item.
**[30:35] Tess Fitzgerald:** Hi, my name is Tess Fitzgerald. I live at 5899 156th Way in Apple Valley. My property windows would look out to that area. I just wanted to voice my concern over having a data center there at all. I was told it was going to be housing. My concerns are about pollution... diesel pollution... and noise pollution.
**[31:25] Chair Kurtz:** Okay, you should be prepared for the next one then. Thank you. Anybody else in regards to this public hearing?
**[31:36] Commissioner Scanlan:** I have a question for Tim. Tim, with this request, should we be holding off on this until there's synergy with Item 5A that was pulled?
**[32:05] Sharon Hills:** They are totally independent. State law requires the City to have their zoning code consistent with the comp guide. We have to have a zoning provision that creates the district.
**[33:06] Chair Kurtz:** If there are no further comments, I will close this public hearing. Unless there is a Commissioner who would like to make a motion tonight?
**[33:28] Commissioner Scanlan:** Madam Chair, I recommend approval of the proposed ordinance amending Chapter 155 by adding new section 155.310 entitled "Mixed Use Business Campus District (M-UBC)" and adding definitions.
**[33:55] Commissioner Halas:** Second.
**[33:57] Chair Kurtz:** Motion made by Commissioner Scanlan, seconded by Commissioner Halas. Any discussion? If not, all those in favor signify by saying "Aye." (Group: Aye). Motion carries. We have one more public hearing tonight. We will now open the public hearing for agenda item 4B. We will begin with a presentation by City staff. Mr. Alex Sharp.
**[35:27] Alex Sharp (City Planner):** Thank you, Madam Chair. [Detailed presentation on the Technology Park proposal, site plans, and setbacks]. Staff is not recommending that the Planning Commission take action at this time. We are looking to take the public testimony and then at a later date provide additional answers. [Discusses massing, building heights, and traffic]. At this point, my counterpart Evan will be taking over briefly to go into our sanitary and water usage.
**[58:51] Evan (City Engineering Staff):** Good evening, Madam Chair, Commission members. [Discusses 2040 comp plan water utility chapter]. The City has 20 wells... our current maximum day demand is 15.5 million gallons a day. This area is proposing to use 1.5 million gallons per day on a peak flow. The project is proposing a 1 million gallon per day difference from our comp plan projections. What we have stated to the applicant is that they need to reduce their water demand or provide additional treatment plant mitigation.
**[1:07:30] Alex Sharp:** Thank you. I’m going to jump back into the landscape plan. [Discusses tree counts, trails, and building elevations]. The tallest building in Apple Valley right now is Wings Financial at 87 feet. These would not become the tallest building. [Concludes presentation]. I will stand for any questions.
**[1:31:28] Chair Kurtz:** Alex, you did a phenomenal job. Thank you. My first comment is: this area was going to be a development to bring in strong economy and employment. What happened to medical offices? And my biggest concern is the water usage. We've had summers with droughts where we couldn't water our plants. Why Apple Valley?
**[1:36:08] Commissioner Halas:** I know Rosemount and Farmington are looking at data centers also. Are we coordinating with those locations? Are we drawing off the same aquifers?
**[1:37:40] Commissioner Scanlan:** Alex, I have a few things here. Will there be a sidewalk along Johnny Cake? The truck entrance off 152nd seems like a sharp turn. Fire egress into a gated facility needs looking at. And what is the phasing plan?
**[1:43:02] Commissioner Melander:** Quick question, Alex. When you're making reference to generators, are we talking about backup diesel generators or others?
**[1:43:18] Alex Sharp:** Chair Kurtz, Commissioner Melander, what has been expressed is that these would be backup generators in the event of a power outage.
**[1:43:48] Commissioner Melander:** I want to echo the concerns on thoroughness. I'm curious how many people are employed at Health Partners relative to the footprint of this new development? Is 200 jobs in the best long-term interest of our community? I'd also like to see a tax analysis.
**[1:50:00] Commissioner Pruitt:** I want to echo the discussion about water usage and power supply. Hopefully the applicant can address the impact of emissions and e-waste, and the longevity of data centers.
**[1:50:45] Chair Kurtz:** Let's bring up the applicant.
**[1:51:12] Drew Johnson (Oppidan Investment Co.):** Thank you, Alex, members of the Commission. Drew Johnson, Oppidan Investment Company. With us today is John from Dakota Electric, our civil engineers from Kimley-Horn, and Penny Design Group architects. [Presentation on project summary, jobs, and tax revenue]. We are projecting $4.7 million in property taxes at full build. Regarding water, the majority of the year, water isn't being used in the cooling system—only fans and outside air.
**[2:28:04] Commissioner Halas:** Just a quick question in regards to generators. We haven't talked about the fuel. Can you expand on that?
**[2:28:22] Drew Johnson:** They are Tier 4 diesel generators. Tier 4 relates to emissions—it’s the California truck equivalent with a sound enclosure.
**[2:29:45] Commissioner Scanlan:** With the diesel fuel, how is that stored?
**[2:30:11] Drew Johnson:** There are belly tanks under each generator designed to run for half a day at a time.
**[2:42:18] John Beier (Dakota Electric):** Madam Chair, members of the Commission. I'm John Beier, VP of Energy and Member Services for Dakota Electric. We would be designing for a 300-megawatt facility. All the transmission and distribution infrastructure needed to serve this will be paid for by the client. This load will not be hooked up if we cannot serve it safely, reliably, and affordably.
**[2:50:25] Resident 1 (Male):** I’ve been a resident for over 40 years. I'm concerned about the water usage with 10 other possible data centers in Dakota County. Who is overseeing the cumulative effect? It feels like the Wild West.
**[2:55:01] Cindy DeVries:** I've been living here for over 30 years. This was intended to be a job creation zone. 200 jobs for 800,000 square feet is a big compromise. What happens when the next heat wave comes? Who gets priority for water—residents or the data center?
**[3:02:07] Dave McKenzie:** I live at 643 131st Street Court. The comp plan envisioned 4,000 to 5,000 jobs for this area. This proposal only provides 200. It’s a bad precedent to abandon the retail along County Road 42.
**[3:08:31] Rachel Merchant:** I live at 13015 Emery Place. I’m concerned about fire department training for this type of facility. And the sound—if you’ve ever sat at Neisen’s patio and heard that car wash, it's obnoxious. How loud will this be?
**[3:10:37] Brad Blackett:** I live at 457 Reflection Road. What are the fire suppression systems? What chemicals are used to snuff out an electrical fire? And where would that runoff go?
**[3:16:15] Mo Ghami:** I live in Farmington, but I was an Enterprise Data Center architect. Meta’s data center in Rosemount uses significantly less water because of their cooling design. If Meta is doing it, other developers should too.
**[3:25:58] Eduardo Torrens:** I live at 15603 Fairfield Drive. I’m not against development, but why that location? As a resident, that whole area will be fenced and closed to the public.
**[3:27:22] Kathy Johnson:** I’m the president of the Coalition for Responsible Data Center Development. There are at least 10 of these mega-campuses coming into Dakota County. My challenge to you is to look at the reality in other states where they are saturated.
**[3:30:37] Martin Matranga:** I live at 4760 138th Street West. This is right under an approach for MSP runways. Will there be any electromagnetic interference affecting aircraft navigation?
**[3:32:02] Julie Murray:** I live at 4684 138th Street West. I implore you to do your research on the longevity and health data regarding these centers.
**[3:33:23] William Griesbach:** I live on 157th Street. The annual vs. peak water numbers don't quite seem to match up. I'd hope for more clarity on that.
**[3:34:10] Commissioner Scanlan:** Madam Chair, I would recommend that we not close the public hearing tonight and let it carry through.
**[3:34:25] Chair Kurtz:** That was already my decision. I’m going to keep the hearing open until next time. Staff will work on formal answers to these questions.
**[3:35:15] Tim Benetti:** Your next meeting will be Wednesday, February 19th. I’d also like to announce that this will be the last meeting of our city planner, Alex Sharp, as he is taking another job with another community.
**[3:36:29] Chair Kurtz:** I hear no motion, Alex, so you’ve got to stay! We will miss you dearly. You've done a great job. Good luck to you.
**[3:36:55] Commissioner Scanlan:** Motion to adjourn.
**[3:37:05] Commissioner Melander:** Second.
**[3:37:10] Chair Kurtz:** All in favor say "Aye." This meeting is adjourned.
**[3:37:23] [Music]**