City of Oak Creek

Common Council Report

Meeting Date:  August 6, 2007

(held June 5, 2007)

Item No.: 8

Recommendation:  That the Council adopt Ordinance No. 2458 rezoning the properties at 9950, 10068, and 10108 S. 27th Street from M-1, Manufacturing, PUD and B-4, Highway Business District with an OO - Office Overlay District to the M-1, Manufacturing PUD (Planned Unit Development) District with an OO - Office Overlay.

Background:  Liberty Property Trust is requesting that the properties at 9950, 10068, and 10108 S. 27th Street be rezoned from the existing M-1 (PUD), Manufacturing/OO, S. 27th Street Office Overlay District, and B-4, Highway Business to M-1 (PUD), Manufacturing with the OO, Office Overlay District.  The new PUD would replace the existing zoning designations and allow for the development of the Liberty Corporate Preserve at Oak Creek, a Class “A” office and industrial park within the 27th Street corridor along an extension of Reinhart Drive between Southbranch Blvd. and Oakwood Road.  The development consists of five buildings totaling approximately 300,000 square feet, which includes a one-story office building, two warehouse/distribution buildings, a multi-tenant retail building, and a restaurant site.

Since the developer is requesting TIF financing for this development, they will be required to enter into a TIF Finance Development Agreement with the City.  This document is currently being prepared, and will be reviewed by the Council at a future meeting.  Since the TIF financing is critical to this development, it would be proper to hold the public hearing this evening, but to withhold action on the rezoning ordinance until the TIF Finance Development Agreement is also on the Council agenda for consideration. 

The developer plans to make this development the first “green” business park in Wisconsin.  The primary buildings will be Leadership in Energy and Environmental Design (L.E.E.D) certified, which means the buildings must be environmentally sustainable and have energy efficient construction and operational practices.

The Planned Unit Development would allow for some flexibility from the existing zoning and overlay district requirements.  Staff feels that given the significant amount of wetlands present on site as well as the mixed use nature of this development that a PUD is appropriate.  The deviations from the zoning ordinance include are identified as Exhibit B in the attached proposed conditions and restrictions.

The applicant has submitted a general development plan which provides a general layout of streets, parking, buildings, driveways and stormwater facilities.  Once the PUD is adopted development within its boundaries will need to follow the general development plan.  Any major deviations from this plan would require an amendment to the PUD, however the PUD should be flexible enough to allow for minor deviations, which could be approved by the Plan Commission during site plan review. 

There is an officially mapped connection from S. Reinhart Drive to S. 27th Street that runs east-west through the middle of this property.  This development will relocate that street to the south end of the property in accordance with the S. 27th Street Corridor Plan.  This will open additional acres for development while still providing the necessary access to S. 27th Street.  The road will be aligned with W. Wheaton Way in the City of Franklin. Since the official map being amended is contained on Liberty’s property an amendment to the official map is not required.

The applicant has applied for a Developer-funded Tax Incremental Finance District as part of the recently adopted TIF #7 to fund the required infrastructure to serve this project. The City is in the process of drafting a finance development agreement for the TIF request, which was recently discussed at the May 1, 2007 Common Council meeting.  A separate development agreement is also being drafted to regulate the construction of the proposed public improvements.

If the rezoning is approved, the applicant will be required to return to the Plan Commission for review and approval of site, building, landscaping and lighting plans prior to the issuance of building permits.

Attached as supplemental information to this report are the following documents:

Notice of Public Hearing

Proposed Ordinance 2458

Proposed Planned Unit Development Conditions and Restrictions

Proposed General Development Plan

Common Council report and minutes of May 1, 2007

Plan Commission minutes of May 8, 2007

Gruen, Gruen & Associates analysis

Liberty Property Trust – PUD application statement

Fiscal Impact:  Based on the parameters of the proposed TIF finance development agreement, the taxes generated by this 24.5 million dollar development would be sufficient to reimburse the developer for the eligible costs, and still provide the City with additional increment after the fifth year for use in other TIF-eligible projects.

Prepared by: Doug Seymour, AICP Director of Community Development

Respectfully submitted, Patrick DeGrave City Administrator

Fiscal Review by:

Beverly A. Buretta, CMC

City Clerk