ITEM 4.3TPC
The Planning Company
PLANNING REPORT
3601 Thurston Avenue
Anoka, MN 55303
763.231.5840
TPC@PlanningCo.com
TO: Otsego Planning Commission
FROM: D. Daniel Licht, AICP
REPORT DATE: 26 March 2019
ACTION DATE: 10 May 2019
RE: Otsego — Insurance Auto Auctions; Sketch plan
TPC FILE: 101.01
BACKGROUND
ITEM 4.3
Insurance Auto Auctions has submitted a concept plan for development of 100 acres located
west of Kadler Avenue south of 80th Street. The proposed use is for an auto auction facility
involving total -loss vehicles due to accidents or theft recovery. The facility includes
construction of a 9,750 square foot building and outdoor areas for vehicle drop off, load out,
and outdoor storage that would be developed in two phases. The proposed development is to
be reviewed as a sketch plan in accordance with Section 10-5-1.13 of the Subdivision Ordinance
to provide comment to the developer as to the acceptability of the land use and public
improvements required for the proposed development. A public hearing to consider the
proposed sketch plan has been noticed for the Planning Commission meeting on 1 April 2019 at
7:OOPM.
Exhibits:
■ Site Location Map
IAA narrative dated February 22, 2019
Layout plan dated 3/8/19
ANALYSIS
Comprehensive Plan. The Comprehensive Plan guides the subject site for future industrial
uses consistent with the City's economic development goal to attract, retain, and expand
business to diversify the tax base and increase employment. The proposed auto auction site
with outdoor storage would be considered to be an industrial use. The City's growth
management plans have been established to recognize that the land uses designated on the
Future Land Use Plan are to develop over time in a staged manner concurrent with logical
extension of infrastructure. This approach maximizes utilization of streets, utilities and other
City services before making additional expenditures in expansion. In the interim, agricultural
land uses are to be maintained until such time as the criteria for urban development have been
met. These criteria include the consideration for rezoning outlined in Section 11-3-2.F of the
Zoning Ordinance for Zoning Map amendment and conditions defining premature subdivisions
outlined in 10-6-1.13 of the Subdivision Ordinance.
Zoning. The subject site is zoned A-1, Agriculture Rural Service District consistent with the
interim land use policies of the Comprehensive Plan. The future land uses guided by the
Comprehensive Plan are to be implemented under the allowed uses and performance
standards of the 1-2, General Industrial District of the Zoning Ordinance.
The proposed auto auction use involves the wholesale resale of used, damaged, and destroyed
vehicles with outdoor areas for drop off, load out, and storage. Section 11-86-2.P of the Zoning
Ordinance allows wholesale businesses within the 1-2 District as a permitted use. Open and
outdoor storage is allowed as an interim use within the 1-2 District subject to the performance
standards of 11-86-3.0 of the Zoning Ordinance.
The proposed development would require application for a Zoning Map amendment to rezone
the subject site from A-1 District to 1-2 District based upon (but not.
limited to) the criteria established by Section 11-3-2.F of the Zoning Ordinance. Application for
an interim use permit is required to allow the proposed outdoor storage element of the facility
subject to (but not limited to) the criteria established by Section 11-4-2.F of the Zoning
Ordinance
As an interim use, the outdoor storage can be allowed conditioned upon a termination date as
provided for in Section 11-5-4 of the Zoning Ordinance:
A. The date or event stated in the interim use permit.
B. Upon violation of conditions under which the interim use permit was issued.
C. Upon change in the City's zoning regulations that renders the use nonconforming.
D. The redevelopment of the use and property upon which it is located to a permitted or
conditional use as allowed within the respective zoning district.
The IAA narrative describes the tax and employment benefits of the proposed use. While
adding tax base and jobs to the City is positive from an economic development standpoint, the
scale of the benefits related to the proposed use are not significant in context with the area of
the subject site. The proposed use should be viewed as interim from the standpoint that it is
appropriate at this point in time given the extent of industrial demand but should be phased
2
out overtime as such demand increases. City staff recommends that approval of an interim use
permit would be conditioned on a termination date not more than 20 years from the date of
approval.
Surrounding Uses. The table below summarizes the existing and planned land uses
surrounding the subject site:
Direction
Land Use Plan
Zoning Map
Existing Use
North
Industrial
A-1 District
Agriculture
Rural residential
East
Industrial
A-1 District
Agriculture
Rural residential
South
Industrial
A-1 District
1-2 District
Rural residential
Bury Industrial Park
West
Industrial
A-1 District
Agriculture
The area surrounding the subject site is primarily rural. Industrial development as guided by
the Comprehensive Plan is occurring to the south from 70th Street to the north. Transitioning
from existing rural land uses to future industrial land uses will require sensitivity in site design
for existing residential homes. Furthermore, uses involving outdoor storage to the extent
proposed on the subject site require screening to minimize visibility of the vehicles from public
right-of-way and adjacent properties to maintain desired community aesthetics.
Building Requirements. The site layout illustrates a 9,750 square foot building to be
constructed on the subject site. The submitted information does not include any additional
details regarding the proposed building. Section 11-17-4.E of the Zoning Ordinance requires
that the building consist of a minimum 75 percent masonry materials such as rock face block or
precast concrete panels. Building plans indicating compliance with the exterior material
requirements of the Zoning Ordinance will be required to be submitted with a future
development application.
Outdoor Storage. Performance standards applicable to the proposed outdoor storage area are
outlined in Section 11-86-3.0 of the Zoning Ordinance:
The storage area is landscaped, fenced, and screened from view of neighboring uses and
abutting residential districts.
Storage is landscaped and screened from view from the public right-of-way.
Comment: The sketch plan indicates that an 8 foot high solid fence is to be provided
along the front of the subject site parallel to Kadler Avenue (and on the three sides of
the residential exception parcel). No construction details are provided regarding this
fence, which must utilize weather resistant materials.
3
A 6 foot chain link fence will be used along the south, west, and north lot lines. The IAA
narrative includes a photo of a chain link fence with vinyl slats as a typical installation for
their facilities. Vinyl slats deteriorate over time and are not accepted for security. A six
foot height of the fence would likely not provide effective screening. This fence should
be considered as serving security purposes only.
The sketch plan also illustrates evergreen trees planted in two staggered rows in the
front yard along Kadler Avenue (and the south, west, and north lot lines of the
residential exception parcel). The height of the proposed trees is not indicated. The
trees must be at least 6 feet in height as required by 11-19-2.13 of the Zoning Ordinance
or of sufficient height to provide effective screening.
The proposed fences and screening are such as to provide for maximum effect from
Kadler Avenue. The Planning Commission may comment on the adequacy of the
proposed screening and should address the need to extend screening along a portion of
the north and south lot lines.
3. The storage area is blacktopped or concrete surfaced.
Comment: The sketch plan indicates that the outdoor storage area is to be surfaced
with reclaimed asphalt millings. This surface will overtime compact and would prevent
dust issues within the site.
City staff is concerned that the proposed surface is not impervious. The discussions
with IAA and the submitted narrative describe that the vehicles processed at the auction
are dropped off, storage, and loaded out in an as -is condition. The various fluids have
not been removed and there is potential for leaks from damaged vehicles while within
the subject site. Fluid leaks raise concern for potential environmental contamination.
To this end, City staff recommends:
■ The surface of the outdoor storage area be surfaced with asphalt or concrete.
A stormwater containment plan provided to prevent environmental
contamination of ground water or stormwater drainage facilities.
The property owner as a condition of the interim use permit is to maintain
substantial insurance, a security bond, and hold harmless agreement with the
City against environmental hazards or any and all environmental claims.
4. All lighting shall be hooded and so directed that the light source shall not be visible from
the public right-of-way or from neighboring residences.
Comment: Section 11-16-6.0 of the Zoning Ordinance establishes performance
standards for exterior lighting to minimize impacts to adjacent properties and public
M
rights-of-way. The developer will be required to prepare photometric lighting plan
detailing the type, location, height, and intensity for all proposed exterior lighting. The
photometric lighting plan is subject to review and approval concurrent with the zoning
applications to develop the proposed use.
5. The storage area does not take up parking space or loading space as required for
conformity to this title.
Comment: The sketch plan illustrates an employee parking, drop off, and load out areas
in addition to outdoor storage areas. Further evaluation of the proposed use is required
to determine parking generation related to the number of off-street parking stalls to be
provided within the subject site in accordance with Section 11-21-8 of the Zoning
Ordinance. A site plan will be required with the development applications that must be
submitted for the proposed use detailing off-street parking areas in accordance with the
design standards established by Section 11-21-7 of the Zoning Ordinance.
Lot Requirements. Lots within the 1-2 District are subject to the following minimum lot
requirements:
Min. Lot
Min.
Setbacks
Max.
Area
Lot
Width
Bldg.
Cover
Kadler
Ave.
Side
Rear
Wetland
2.Oac.
200ft.
30ft.
20ft.
25ft.
40ft.
50%
The sketch plan complies with the lot requirements of the 1-2 District. All of the site elements
are setback 30 feet from Kadler Avenue (and the residential exception parcel) to provide for a
landscaped yard for buffering and screening. The 1-2 District does not establish a maximum for
impervious surface coverage, which will be dictated by stormwater treatment and rate control
needs.
Traffic. The subject site is accessed from Kadler Avenue. IAA indicates that traffic generation
for the facility will include car haulers and flatbed trucks related to the vehicle inventory and
employee vehicles. There is no projection as to traffic generated by those attending auctions or
details regarding the frequency of deliveries, auction events or regular operating hours. IAA
does provide a general projection of 200 to 250 vehicle trips per week (40 to 50 trips per day).
Kadler Avenue is planned as a future minor arterial roadway by the Transportation Plan, which
connects to 70th Street to the south. The City is working with MNDoT and the City of Albertville
regarding reconstruction of 70th Street. Kadler Avenue has been improved to a
commercial/industrial street from 70th Street to one-half mile north of 70th Street in
conjunction with the Bury Industrial Park. Kadler Avenue from the Bury Industrial Park to 801h
Street adjacent to the subject site is a rural section gravel roadway.
Kadler Avenue in its current condition abutting the subject site cannot accommodate traffic
generated by the proposed use. Provision of a adequate access for traffic generated by the
proposed use is one of the criteria that must be met under the Zoning Ordinance for approval
of a Zoning Map amendment and interim use permit and the premature subdivision criteria of
the Subdivision Ordinance. Kadler Avenue must be improved to Standard Plate 103 of the
Engineering Manual as a 46 foot wide urban section street with asphalt pavement and concrete
curb within an 80 foot right-of-way as a condition of any approval for the proposed
development. The City does not have improvement of this section of Kadler Avenue scheduled
as part of its Capital Improvement Plan for the next 10 years.
Advancing improvement of Kadler Avenue will make possible not only the proposed IAA
development but also open up properties on the east side of Kadler Avenue for guided
industrial development, which would advance the City's economic development goals. To this
end, IAA could undertake improvement of Kadler Avenue at their cost as a condition of
developing the subject site. Improvement of I<adler Avenue would include all costs related to
land acquisition to expand the current 66 foot wide right-of-way to 80 feet and construction of
the street section. It has not been the City's practice to assess the costs for the street
improvements required by the development to other potentially benefited properties and the
recent court decision involving the City of Woodbury means the City cannot agree to collect
future transportation infrastructure fees that could be rebated to the developer.
Utilities. The subject site is within the West Sewer District established by the Comprehensive
Plan. Trunk water facilities have been placed in Kadler Avenue that would provide for water
service for the proposed use. Sewer utilities are approximately 2,700 feet to the south of the
proposed building within the subject site and would need to be extended to serve the proposed
use.
The size of the sewer line needed to serve the proposed use is significantly smaller than the
planned trunk sewer line that would serve the subject site with a more intense use and
adjacent properties. The developer is proposing to install a temporary service line that would
be sufficient for the proposed use. In consideration of the 20 year limit recommended for the
interim use permit to allow the proposed use, such a temporary sewer line is acceptable.
Development of the subject site with industrial uses triggers payment of utility availability and
connection charges. Availability charges are based on the land area of the development and
connection charges are based upon estimated water demand for the actual use.
To minimize the amount of the availability charges, IAA is proposing to plat the subject site as a
lot that includes the building, drop off, and load out areas and an outlot encompassing the
outdoor storage area. The developer would pay availability charges at the time of final plat
approval for the lot. Availability charges would not typically be paid for the outlot. City staff
recommends that the plat approval include a stipulation that the availability charges applicable
to the outlot be required to be paid in accordance with the City's fee schedule in effect 20 years
0
from the date of the plat approval. This condition is to be used in combination with the term of
the interim use permit to encourage amore intensive redevelopment of the subject site.
Connection fees for sewer and water use would be determined by the Building Official based on
the plans for the proposed building and estimated water usage.
Stormwater Management. As noted above, stormwater management is a crucial issue for
development of the proposed use.
In addition to concerns about water quality, a stormwater management plan is required
that provides for rate control such that the rate of stormwater leaving the site is the
same as exists in a predevelopment condition.
■ The property owner has delineated existing wetlands within subject site. Section 11-16-
5.F of the Zoning Ordinance outlines required wetland protection measures including
avoidance, required buffers, and required setbacks. In platting the subject site, the City
will require that any wetlands and wetland buffers be platted as a separate outlot(s) to
be deeded to the City in accordance with Section 10-8-10.D of the Subdivision
Ordinance.
■ The subject site is within the Otsego Creek watershed and a stormwater impact charge
based on the net developed area of the subject site.
All grading, drainage, and erosion control issues are to be subject to review and approval of the
City Engineer.
Environmental Review. The proposed development would convert 100 acres of cultivated
fields to an industrial land use. Minnesota Rules 4410.4300, Subd. 36.A requires that an
Environmental Assessment Worksheet (EAW) be prepared for any land use conversion involving
80 acres or more. IAA must prepare an EAW for review and approval by City staff. The EAW is
to be processed in accordance with Minnesota Rules 4410.1500 to 4410.1700. The City will
receive comments regarding the potential for environmental effects caused by the proposed
development and the City Council will be the Responsible Government Unit (RGU) for
determining if an Environmental Impact Statement is to be required.
RECOMMENDATION
IAA has proposed an industrial use that if allowed on an interim basis advances the City's
economic development goals. Support for the proposed use must be conditioned on a number
of stipulations and obligations on the part of IAA to address the current lack if infrastructure
needed to support the proposed use as well as operational considerations of the proposed use.
If the Planning Commission supports the proposed use, City staff has recommended conditions
that be included in such a motion below.
7
POSSIBLE ACTIONS
A. Motion to support of the IAA sketch plan subject to the following conditions:
1. The proposed development shall require the following applications:
a. Zoning Map amendment rezoning from A-1 District to 1-2 District.
b. Interim use permit allowing outdoor storage.
C. Site and building plan review.
d. Preliminary plat.
e. Final plat.
2. The developer shall prepare an EAW for review and approval by City staff to be
processed in accordance with Minnesota Rules 4400.1500 to 4400.1700.
3. An interim use permit allowing the proposed outdoor storage use shall
terminate 20 years from the date of approval in accordance with Section 11-5-4
of the Zoning Ordinance.
4. The exterior finish of all buildings shall comply with Section 11-17-4.E of the
Zoning Ordinance.
5. The outdoor storage area shall be landscaped and screened from view of
adjacent properties and the public right-of-way as determined by the City
Council.
6. The outdoor storage area shall be surfaced with asphalt or concrete subject to
approval of the City Engineer.
7. Off-street parking shall be provided in accordance with Chapter 21 of the Zoning
Ordinance.
8. All exterior lighting shall comply with Section 11-16-6 of the Zoning Ordinance.
9. The developer shall provide at their cost for right-of-way acquisition and
construction of Kadler Avenue between the north line of the Bury Industrial Park
and 80th Street in accordance with Standard Plan 103 of the Engineering Manual,
subject to review and approval of the City Engineer.
10. Utilities:
a. The developer shall be responsible at their cost for extension of temporary
sewer service to the subject site.
b. The developer shall pay utility availability charges for any platted lots at the
time of final plat approval in accordance with the City Code and fee
schedule in effect at that time.
C. Payment of utility availability charges for any outlot for which an interim
use permit is approved allowing outdoor storage shall be due 20 years
from the date of final plat approval in accordance with the City Code and
fee schedule in effect at that time.
d. Utility connection charges shall be paid at the time a building permit is
issued in accordance with the City Code and fee schedule in effect at that
time.
e. All utility issues are subject to review and approval of the City Engineer.
11. Stormwater management:
The property owner as a condition of the interim use permit shall maintain
substantial insurance, a security bond, and hold harmless agreement with
the City against environmental hazards or any and all environmental
claims, subject to review and approval of the City Attorney.
b. A stormwater containment plan shall be required to prevent
environmental contamination of ground water or stormwater drainage
facilities.
C. Wetlands and wetland buffers shall be platted within outlots and deeded
to the City,
d. All grading, drainage, and erosion control issues are subject to review and
approval of the City Engineer.
B. Motion to not support the IAA sketch plan based on a finding that the request is
inconsistent with growth management policies of the Comprehensive Plan.
C. Motion to table.
Adam Flaherty, City Administrator/Finance Director
Tami Loff, City Clerk
Andy MacArthur, City Attorney
Ron Wagner, City Engineer
Jay Bajgert, IAA
Jim Waters, Otsego Farms LLP
10
IAA -Site Location Map
Overview
Legend
Roads
— CSAHCL
CTYCL
— MUNICL
— PRIVATECL
— TWPCL
Highways
— Interstate
— State Hwy
— US Hwy
City/Township Limits
n
❑ t
❑� Parcels
Adam Flaherty
City Administrator
City of Otsego
13400 90th Street NE
Otsego, MN 55330
February 22, 2019
Re: Insurance Auto Auctions, Inc. — Sketch Plan Narrative
WSB Project No. 013519-000
Dear Mr. Flaherty:
Attached please find an application and sketch plan for a proposed development of a 100 -acre parcel
located southwest of the intersection of Kadler Ave. NE and 80th St. NE. These documents have been
prepared by or on behalf of Insurance Auto Auctions, Inc. ("IAAI"). IAAI requests that this item be
considered at the City's March 18, 2019 planning commission meeting.
In addition to the attached, and to follow up on initial conversations with the City of Otsego staff, please find
outlined below additional information regarding the proposed development that may be of use to you in
your review.
Overview and Operations of IAAI:
IAAI works in partnership with a variety of sellers, including insurance companies, dealerships, rental car
companies and fleet lease companies to facilitate the sale by auction of total loss, theft -recovered and other
vehicles which have reached the end of their useful life. Vehicles are sold quickly and efficiently, with 50%
of IAAls business being conducted via the internet. IAAI has consistently expanded its business. In the past
10 years IAAI has added over a hundred facilities, currently employs over 1,800 people, and has
approximately 180 facilities in the United States and Canada.
After receiving vehicles from its customers, IAAI begins the process of auctioning the vehicle, by inspecting,
imaging and placing the vehicle in its inventory. Vehicles are not dismantled; no parts are removed from
the vehicles, nor is any maintenance done on the vehicles. The vehicles are sold in the same condition as
when they arrive.
IAAI follows strict regulatory compliance at federal, state and local levels, including regular environmental
audits. IAAI has best management practices for dealing with the rare spillage or leakage from a vehicle,
which is outlined in more detail below.
Economic/Tax Base Information
The proposed development will provide the city with a significant increase in tax revenues for the site
compared to the existing agricultural use. Development values of this site are summarized below:
Estimated Cost for Improvements to Property $17,000,000
Land Value $3,500,000
Total Value $20,500,000
Insurance Auto Auctions, Inc. I Two Westbrook Corporate Center, I0th Floor I Westchester, IL 60154 IT 708.492.7000 1 F708.492.7078
IAA-Auctions.com I IAAI.com
City of Otsego
February 22, 2019 /MAPage 2 K.
Employment Benefits to the Community:
This development will consist of 20-22 dedicated employees in addition to local leadership comprised of
Branch Manager (BM), Yard Manager/Supervisor (YM/YS), Office Supervisor (OS) and sometimes
Assistant Branch Manager (ABM)
Salaries for 20-22 employees (these are averages based on location) $38.9K per employee plus
benefits
Salaries for leadership (not including bonuses or benefits)
o Branch Manager Average Salary: $96.2K (for this size branch)
o Yard Manager or Yard Supervisor average Salary: $52.8K
o Office Manager Average Salary: $51 K
Lighting and Security:
The only exterior lighting at the site is located at the building. The remainder of the site is not lit. The site
utilizes heat sensitive infrared security cameras that are effective at monitoring for security purposes in low
light or no light conditions.
Traffic:
IAAI proposes to construct two access points off Kadler Ave NE. The access points would be spaced 500 -
feet apart in accordance with City requirements. Traffic in and out of the facility will include car haulers,
flatbed tow trucks and employee vehicles. IAAI anticipates that when the site is fully developed, there would
be approximately 200-250 weekly trips to and from the site on average.
Screening:
RAI will meet the City of Otsego's screening requirements for this development, if required. IAAI can avail
itself of a wide variety of screening options to meet such requirements. Attached is a photo of a recent
development depicting our typical chain link fence with vinyl slats.
Setbacks
IAAI will meet the City of Otsego's screening and setback requirements for this development.
Environmental Protection:
As stated above, no reclamation, repair, dismantling, or salvage of vehicles is conducted on the property.
Accordingly, leaks, spills, fumes, and odors from the site will rarely occur. In rare circumstances, a vehicle
that has been damaged may leak while it's being stored, but IAAI implements best management practices
for addressing these issues, including the following: visual inspection of vehicles upon intake and while in
inventory, proper handling and storage of vehicles, and training of personnel, preventive maintenance of
stormwater infrastructure, and regular inspections of storage areas and any other area in which hazardous
materials are present.
All IAAI facility employees receive routine training on the management of any conditions which may occur,
and IAAI has an ongoing relationship with Tetra Tech EM, Inc., a national environmental consulting and
compliance firm to assist with any significant issues, should they happen to occur. IAAI follows a specified
set of standards to ensure high quality operations, which are outlined in its Environmental Best
Management Practices Manual. In addition, IAAI carries a pollution liability policy with significant limits,
which is issued by Chubb, which covers all of its locations throughout the US and Canada.
Insurance Auto Auctions, Inc. I Two Westbrook Corporate Center,10th Floor I Westchester, [LBO 154 IT 708.492.7000 IF 708.492.7078
IAA-Auctions.com I IAAI.com
City of Otsego
February 22, 2019 /MAPage 3
K.
Kadler Ave NE Road Improvements
It is understood that the City would require improvements to Kadler Ave NE in connection with this
development and the dedication of such improved road as a right of way. IAAI is amenable to discuss
providing an improved, dedicated right of way as required to facilitate this project. IAAI will work with the
City and adjacent property owners to accomplish the road improvements.
It is further understood that based on initial conversations that improvements to Kadler Ave would be funded
by this development. We would be receptive to further discussions on this topic.
Thank you for your consideration of the information enclosed. We anticipate further discussion of the project
with you.
Sincerely,
Insurance Auto Auctions
Jay Bajgert
Real Estate Project Manager
Insurance Auto Auctions, Inc. I Two Westbrook Corporate Center, 10th Floor I Westchester, IL 60154 I T708.492.7000 IF 708.492.7078
IAA-Auctions.com I IAAI.com
1
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CURB AND GUTTER
ROW LINE
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® BITUMINOUS PAVEMENT —4C— PROPOSED STORM SEWER PIPE
0 RECLAIMED ASPHALT MILLINGS SURFACE PROPOSED EVERGREEN TREE, 25' ON CENTER
WETLAND
i=_gin ® PROPOSED CATCH BASIN
L=jlj STORMWATER PONDS p PROPOSED FLARED END SECTION
40' WIDTH DRAINAGE SWALE
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WSB PROJECT NO.:
013519-000
SCALE:
DESIGN BY:
1':100'
PW
PLAN BY:
CHECK BY:
LC
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75' PROPOSED ROW
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0 100 200
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WSB PROJECT NO.:
013519-000
SCALE:
DESIGN BY:
1':100'
PW
PLAN BY:
CHECK BY:
LC
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