Posted: 4/24/07
Office building on Vista Drive clears final hurdles
By Charlie Warner
Argus News Editor
It appears as if itís "full speed ahead" for a 3,500 square-foot commercial building to by erected by K Properties, LLC at 425 Vista Drive in Caledonia. Local developers George Kittleson and sons Sam and Willie, plan to construct a 50 by 70 foot building just east of Subway Sandwiches along Highway 44 that could house up to three service-type businesses.
Before the new building could become a reality, the Kittlesons had several hurdles to clear on both the city and county levels.
Receiving city approval
On Monday, April 16, the Caledonia City Council approved a request for property tax abatement and five variances following two public hearings held during a special council meeting. The first public hearing was to consider a request for property tax abatement on the proposed improved property.
According to figures provided by city staff, the pre-developed estimated market value of the property was $36,700 with a property tax of $984 per year. The projected new market value was estimated at $212,900, with a projected property tax of $6,336 per year.
Because both the city and the county will realize a substantial increase in the amount of property taxes derived once the project is completed, abatements are approved to help encourage development and improvements.
The amount of tax abatement approved by the city can not exceed $5,000 over its 10-year span, while the county abatement can not exceed $8,500.
The council also had five zoning variances to consider. Because the project includes a parking lot with 14 parking stalls, a 47-foot setback variance was needed for the north (front) property line. A 35-foot variance was required on the south property line, as well as on the east property line. A fourth setback variance (five feet) was also required on the west property line.
The fifth variance required had to do with parking stall dimensions. According to city Zoning Administrator Mike Gerardy, a city ordinance, which has been on the books since 1982, requires all parking stalls to be 10 feet wide and 25 feet long.
"Vehicles are somewhat smaller now than they were back in ë82 when that ordinance was approved," Gerardy noted. The plans call for parking stall dimensions nine feet wide and 18 feet long.
The 70 by 50-foot building would be wood frame construction with brick veneer. It will be set back on the lot, to line up with the existing commercial building (Subway Sandwiches).
The only concern registered by adjoining property owners was that the arborvitaes, located on the east property line would not be removed. The property owners to the east felt the large shrubs would act as a privacy screen, especially at night with headlights from cars entering and exiting the facility.
It was noted that Shapes, currently located at 311 West Main Street, has signed a commitment to lease space in the new building and is considering offering 24-hour service to its members, utilizing pass cards.
County approves abatement
The Kittlesons submitted a property tax abatement request to the Houston County Board on April 17. The proposed project had been reviewed by the joint Caledonia-Houston County Finance Committee and Joyce Iverson, who serves as EDA director for both the city of Caledonia and Houston County.
Iverson explained the process the Kittlesons had gone through with the city of Caledonia and the joint finance committee.
Commissioner Tom Bjerke asked if enough parking would be provided, or if off-street parking might be an issue.
George Kittleson replied their design met zoning guidelines for number of parking stalls per square foot of office space. Kittleson added they are planning on having three businesses located in the building and each business would have its own entrance.
Commissioner Dave Corcoran, who is a member of the joint finance committee, said one of the reasons the committee supported the project was the fact at least two of the businesses interested in signing lease agreements were looking to move out of the area if they couldnít find better locations.
Commissioner Larry Graf asked if the business moves would mean more open buildings in downtown Caledonia. Iverson responded one of the potential occupants is currently located in the old school mall, and the other is in an old building downtown.
A motion by Bjerke and seconded by Corcoran to approve the property tax abatement request was unanimously approved.
A starting date
Kittleson indicated construction of the new building would commence right away. Originally, he planned to have the project completed by July 1. Weather permitting, that just might happen, he added.
Caledonia Argus
314 West Lincoln St.
P.O. Box 227
Caledonia, MN 55921-0227
507/724-3475
E-Mail: editor.argus@ecm-inc.com