HomeMy WebLinkAboutPUBLIC HEARING - 2018-11-26 - REZONING - PET2018-10-01-08 - 39000 SEVEN MILE RD
CITY OF LIVONIA
PUBLIC HEARING
Minutes of Meeting Held on Monday, November 26, 2018
______________________________________________________________________
A Public Hearing of the Council of the City of Livonia was held at the City Hall
Auditorium on Monday, November 26, 2018.
MEMBERS PRESENT: Laura Toy, President
Jim Jolly, Vice President
Scott Bahr
Brian Meakin
MEMBERS ABSENT: Brandon Kritzman
Kathleen McIntyre
Cathy White
OTHERS PRESENT: Mark Taormina, Director of Economic Development
Paul Bernier, City Attorney
Bonnie J. Murphy, Certified Electronic Recorder, CER-2300
The Public Hearing was called to order at 7:00 p.m. with President Laura Toy presiding.
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This is a Public Hearing relative to Petition 2018-10-01-08, submitted by 18 Street
Development, L.L.C., to rezone the property located on the north side of Seven Mile
Road between the I-275/96 Expressway and Haggerty Road (39000 Seven Mile Road)
in the Southwest ¼ of Section 6, from M-1 (Light Manufacturing) to PO-1 (High Rise
Professional Office – Maximum 6 Stories).
The City Clerk has mailed a notice to those persons in the area affected by the
proposed changes, and all other requirements of Ordinance No. 543, the Zoning
Ordinance, have been fulfilled.
The Public Hearing is now open for comments. Please state clearly your name and
address before making your comments. There were 16 people in the audience.
Toy: I’m going to turn this over to Mr. Taormina who is our Director of Planning.
Taormina: Thank you, Madam President. Again, this is a request to rezone property
that is located at the northwest corner of I-275 and Seven Mile Road. The
change of zoning would be from M-1, Light Manufacturing, to PO-1, High
Rise Professional Office.
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This site is a single parcel, it’s 35 acres in size and includes roughly 2,000
feet of frontage along I-275 as well as 460 feet on Seven Mile Road.
There is an existing 290,000 square foot industrial building currently
located on the property, that is occupied by A123 Systems, a developer
and manufacturer of phosphate batteries. As everyone knows, A123 has
announced that it will be vacating the site next year. A change of zoning
would allow for the future possible development of the site for office
purposes under the Professional Office Zoning classification as permitted
in waiver uses in an OS Zoning District, including professional and general
offices are allowed.
The buildings in a PO-1 District are required to be over two-stories in
height, with the maximum height of six stories. Immediately abutting this
property to the north is an oil well that is operated by West Bay
Exploration. Immediately to the west is the Paragon Entertainment
complex that includes the AMC 20 Theaters as well as the Hyatt Place
Hotel, J. Alexanders, Bahama Breeze is now B.J.’s Restaurant. Then to
the south is Seven Mile Crossing, that’s across Seven Mile Road but there
is an existing high-rise office complex, three buildings, and then
immediately to the east as previously indicated is the expressway.
A little bit about the history, the M-1 Zoning was established in 1967, that
was done by the Planning Commission. In 1985 the site was developed
as the headquarters of CBS Fox Video which later became Technicolor
and they produced VHS tapes and other entertainment media. The
building was the repurposed in 2009 as a battery production facility for
A123.
The existing building does comply with the PO District regulations with
respect to all yard setbacks and maximum ground coverage by principle
building. And the Future Land Use Plan designates the site for office
purposes so the proposed change of zoning is consistent and compatible
with the Future Land Use Plan. The Planning Commission is
recommending approval of the zoning change. Thank you.
Toy: Thank you very much, Mr. Taormina. Council, any questions from Mr.
Taormina? Councilman Meakin.
Meakin: Thank you, Madam President. Mark, is this the same ownership of the
existing commercial building?
Taormina: I’m sorry, that has filed this Petition?
Meakin: Yes.
Taormina: No, and I’ll allow them to describe it, it’s an agent on their behalf.
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Meakin: Thank you.
Toy: Councilman Bahr.
Bahr: Mark, what is the history, you said this was zoned this way in 1963, is that
what you said?
Taormina: 1967.
Bahr: ’67. Was this back then, the only M-1 zoning here or we have a lot of M-1
zoning?
Taormina: I’m not aware of any other M-1 zoned properties other than the historical
property that was located on Seven Mile Road immediately adjacent to the
site. Other than that you have to go a couple of miles to the south to find
the closest.
Bahr: I was just curious, thank you.
Toy: Thank you.
Meakin: Eight Mile had a lot of M-1 zoning on both our side as well as Farmington
Hills.
Taormina: Yes, further to the east, that’s correct, yes.
Meakin: Once you get past Farmington, it’s all M-1 right there.
Toy: Mark, is there any other buildings within that radius that are up to six
stories and if so, what is the tallest one, do you recall?
Taormina: You’d have to look across the highway for the six stories, I believe to the
south across Seven Mile Road are all four-story structures. Let me see,
Holiday Inn would be six, five or six. And then there is a petition involving
the property directly across the expressway that would include a six-story
hotel. And that’s a petition you’ll be seeing very shortly.
Toy: Great project in the New Year. We’re going to go to the Petitioner, sir.
Your name and address for the record, please.
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Kelly: Sure. Tom Kelly, 1621 18 Street, Denver Colorado.
Toy: Do you want to tell us a little bit?
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Kelly: Absolutely. Good evening. We believe PO-1 Zoning promotes the
highest and best use of the subject property. We have the property under
contract and are looking to figure out how to repurpose this and PO-1
Zoning gives us the flexibility of the short and the long term that we’re
going to need to be able to deliver a first class commercial development
on this site. We feel the highest and best use of the site is some form of
professional office and based on its proximity to the interstate and the
surrounding land uses, is really what attracted us to the site.
If you look at this image up here on the screen, if you start at the top which
is to the west, we feel that we are aligned with the current zoning and land
uses. To the west is C-2 Zoning with the AMC Livonia 20 theater, there’s
the Hyatt Place Hotel, and I’m not sure there’s other commercial uses
there. To the north you can see, immediately to the north is a PO Zoning
parcel, and on this further to the east across I-275 is OS and PO Zoning
and on those are the one five-story building height ranges. And then if
you look to the south across Seven Mile Road it’s also PO Zoning which is
the Seven Mile Crossing office development of three four-story buildings.
So looking at the surrounding land uses we believe that PO Zoning is
aligned with the current immediate zoning in the neighboring properties.
When we step back and look at the current zoning map for the City of
Livonia, you can see that the current industrial zoning of the subject
property is an island unto itself aside from the smaller give or take a one
acre parcel west of that that has a historic building on it. The properties
with industrial zoning are primarily located along the southern corner of I-
96 in the purple and peach colors that I’m sure you all know are the
commercial uses and that’s why when we look at the overall context of the
City of Livonia, we feel that we’re aligned with the overall zoning of the
City.
When you look at the City’s vision for Future Land Uses you can see that
the zoning request is also consistent with this vision, being an office
designation. The pink and red represent office and retail commercial
uses. The Future Land Use map is consistent with what we just saw in
the zoning map as industrial manufacturing uses are envisioned because
it’s very low at the southern boundary of I-96. So again, we feel we’re
aligned, not just from a zoning perspective with the Future Land Use Map.
The subject property as previously mentioned is 35 acres and due to the
size, it may have a multi-year phase development approach. This very
preliminary concept plan on the screen indicates a potential adaptive
reuse of some of the buildings, potentially all of the buildings and they may
be used under a short or long term basis along with future development on
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other portions of the site. We also at the same time considering
demolishing those buildings and start it from scratch.
The existing buildings range from one to three stories in height and to the
extent that we were to use any of the buildings that are under three stories
in height, we would seek a waiver from the City to allow to keep any
existing one to two-story structure.
I would like to point out that a portion of the existing structure which is the
large existing warehouse building on there is where they are currently
doing the manufacturing use. If we were to use any or all of that portion of
the building, we would not be doing any manufacturing, we’d be consistent
with the zoning but for the height being under three-stories and again, we
would seek a waiver if we were to contemplate using that through the City
but the manufacturing use could go away.
As we progress through the rezoning process, we’ll continue to refine our
development plan and we’ll be in a much better position to be able to
present a site plan and specific intended uses for what we’re going to do.
But we’ll also at the same working through our diligence, working with
traffic engineers, understanding what the traffic flow is and conditions on
the adjacent roadways and incorporate that into our site plan and how our
traffic may impact and be able to optimize our ingress and egress points to
be able to maximize safety and optimize vehicular as well.
While we are too early in the process to show a site plan or specific
renderings I would like to provide you with examples of the projects that
we’ve embarked on throughout the country, give you context as to the
scale and quality of the commercial development we envision for this
property.
On the slide is an 80,000 square foot four-story professional office
building. Now, this is the 85,000 square foot four-story building and the
next slide is a 120,000 square foot four-story building.
This concludes my portion of the presentation but I’m happy to answer any
questions you may have.
Toy: Council, any questions for this gentleman? Councilman Meakin.
Meakin: Thank you very much for looking to do work here in Livonia. Have you
done work in the State of Michigan previously?
Kelly: No, I have not. Our company has done some work in Michigan but I never
have.
Meakin: Can you bring us up to date with what’s going on with A123?
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Kelly: Sure. They have a lease through May to occupy the building as a tenant
and then they’re relocating off premises.
Meakin: Have you been marketing that space currently?
Kelly: We are starting on this building, we’ve had numerous conversations and
we continue to have these discussions. We envision this to be a more
competitive development and are embarking on numerous conversations
at this point.
Meakin: You’re really not looking for it as a manufacturing facility?
Kelly: That’s correct.
Meakin: Thank you. And if I could through the Chair, Mark, there’s a number of tax
incentives that are involved with this property, do those stay or do those
go with the new development?
Taormina: Those go. The incentives were a combination of State and Federal
Personal Property Exemption and those would be revoked or disappear
once they vacate the site.
Meakin: Sir, you said your company has other properties in Michigan, where are
those?
Kelly: That was before my tenure at the organization, so I really don’t know the
specifics.
Meakin: Are you foreseeing issues having two office buildings?
Kelly: No. We would look to utilize the existing parking we have, but if we do we
may come to the City about some parking variances but at this time we’re
not far enough along in our development plan to be able to tell one way or
the other.
Meakin: So you haven’t even considered the parking at this point?
Kelly: Correct. I think this is going to be a multi-phase development, so I’m sure
it will be contemplated at some point, that’s my opinion on it. There are a
lot of variables right now and it may not be worth it.
Meakin: And are there any other contingencies you have on this property at this
time?
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Kelly: No. Just our, what we have is a preliminary contract and we would seek
to get our zoning approval as part of our contingency for our contract. If
we should not get it, or should we close on the property, we would put as
part of our process that the zoning be reverted back to its current zoning
or if we’re granted approval but don’t successfully close on the
transaction.
Meakin: Then I’ll go back to our Law Department, how do we do that?
Bernier: My understanding is if the Council approves the change which is being
requested, that will be it. I think if you want to go back to manufacturing
again to the M-1, then you’d have to open it up all over again and do a
whole new hearing.
Meakin: We can always hold it until they get the approval.
Bernier: Of course, between the First and Second Reading with no vote. But it can
actually go through the process then hold it instead of starting all over
again.
Estey: Let me interject, if I could. Steve Estey, Counsel for the Applicant from
Dykema. One of the things we discussed with Mark was offering a
conditional rezoning agreement. And as part of the conditional rezoning
agreement one of the conditions would be that if we did not close on the
property, the zoning would remain as the current zoning status. So that
was one method we were seeking to accomplish, but otherwise certainly
without that if you were to approve it, it would go to the new zoning absent
rezoning it back. So the Applicant is willing to enter into a conditional
rezoning agreement that would allow this property to revert or to remain in
its current zoning classification unless and until we close on the property,
if that’s something that Council would like to entertain.
Meakin: It could be advantageous to us to change the zoning to PO.
Estey: Correct.
Toy: Councilman Jolly, then Councilman Bahr.
Jolly: Thank you, Madam President. Mark, who currently owns this property?
Taormina: A company called – well, I’m not sure on the Holding, what the name of
the Holding Company is, but it’s Sterling Group.
Jolly: So this man is purporting to be the agent for the perspective buyer, is that
correct?
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Taormina: That is correct.
Bahr: It’s pretty typical for us with something like this to have a First Reading
and hold the Second Reading until we saw a site plan. Is a scenario like
that sufficient with what you’re looking to do with your conditional
contract?
Kelly: Would we have time to have the opportunity to talk about what the
schedule of the rezoning looks like and we may negotiate the land
purchase contract accordingly so we have the time to prepare the site
plans, submit it, and we will be able to talk about the specifics of the
property and project at that time and then move on to the Second Reading
before we move to close and be able to get our official zoning prior to our
closing.
Bahr: Through the Chair to Mark, do you know what the vacancy is in the office
space in that area right now?
Taormina: The vacancy has dropped significantly so we’ve seen a substantial
absorption in the office space in that particular area in the last year and a
half, I don’t have the number in front of me. Certainly if this ever becomes
a single purpose site and it does have significant attraction for corporate
users, so both sites with that kind of mass are difficult to find right now,
particularly along the expressway.
Bahr: Just thinking about the different directions this could go, we went by there
with the Haggerty Square with the upscale apartments going in there, is a
mixed use of this site a possibility?
Taormina: The answer is yes, it can be done under the PO Zoning. I’ll verify that but
I don’t see any obstacles to apply the Article 20 Planned Unit
Development Standards to this site in this case. We could see a mix of
uses under the PO Zoning classification, not something that I believe is
available under the M-1 but I’ll verify that prior to the voting meeting.
Bahr: Okay.
Meakin: If we’re offering conditional rezoning we aren’t limited by any classification
of zoning then, is that correct?
Taormina: I’m not sure I’m following your question.
Meakin: As a part of a conditional rezoning offer, we’re not limited to any
classification of zoning?
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Taormina: Well, we’re limited --- if what you’re suggesting is you could change the
classification to something less intense than PO-1, that option is still
available to you. I will tell you that as to the suggested conditional
rezoning agreement, this is precisely what Council did in the case of
Menard’s. So when Menard’s acquired the site on Middlebelt Road, it was
done with the understanding that the owner of the property, the underlying
owner at the time, said that unless they close on the property, he wanted
to retain the industrial zoning of that property. It was approved with that
conditional zoning and within a week or so prior to that approval, while the
zoning had not been effectuated, the closing occurred and once that
occurred then the zoning was set in place. So what we’re really seeking
to do exactly what we’ve done previously on the Menard’s site.
Toy: You said you were doing a traffic study?
Kelly: Yes, ma’am.
Toy: I’m going to go to the audience and get comments at this time. Anyone
wishing to address the subject matter on Item 1 that the Petitioner has
brought forward?
Gebhardt: Hello, Madam President, and Council members and Mayor and the fact
that the City of Livonia is the greatest city in the world. We do a great job
here.
Toy: We need your name and address.
Gebhardt: Joan Gebhardt, my address is 35248 Leon Street, Livonia, Michigan. I’m
here both as a resident and also as a Trustee at Schoolcraft College. And
at Schoolcraft College, I’m a volunteer like the members of the Planning
Commission are, so I thank them for all their work on this item.
I have a couple questions. Number one, I like the idea, Mr. Kelly, of a
traffic study because I don’t know about you but Eight Mile and 275 is a
traffic wreck and that’s moving south. And 275 and Seven Mile, it’s kind of
the same problem. You know, the traffic is backed up on the entrances
and exist of 275 and mile roads. Then Schoolcraft putting in the dome, we
were concerned about being a good citizen and so we worked on the flood
plane and we also worked on the traffic. And we petitioned Wayne County
to put a light there and we paid for Ring Road to go to Six Mile and Seven
Mile between those two areas. And so I think it’s really important to look
at the traffic there and when Mr. Kelly was talking I heard him talk about
Haggerty Road and I heard him talk Seven Mile Crossing, but he didn’t
talk about Schoolcraft College. And that is a big area and a variable that I
think would be considered because not just the traffic but also the safety
of our teens. So I’m concerned about that.
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I’m also concerned about what and Mr. Ventura questioned this during the
Planning Commission meeting, about redefining the development plan,
what’s going to go in there. And I realize that that hasn’t been set in stone
yet but as I looked at the website and you know someone I hope will
correct me if I’m wrong, that they talk about health care development. And
health care facilities or health care systems, facilities and physicians. So I
can only assume that that’s going to be what’s going in there is health
care. I don’t know that for sure but I would imagine that somebody like
Beaumont would love to come in and be the Petitioner for U of M there
also on the corner of Seven Mile and Haggerty.
So my question is I would hope that the Council would take this all into
consideration for both the traffic study and the safety study. I like the idea
about the condition zoning because I think that that needs to be done first,
the traffic and safety study before we get to that second meeting.
I also am going to be watching this closely because whether we go down
Haggerty Road bumper to bumper right now from Six Mile to Eight Mile, or
whether if we try to get off 275 at Seven Mile or Eight Mile, it’s a headache
and I’m concerned about the traffic and the safety. Thank you very much.
Toy: How many students do you presently enroll on your Livonia campus?
Gebhardt: We have to mesh those figures because we have full-time students who
are now getting certificates and degrees. We also have quite a few senior
citizens who come to the area in our CEPD, Continuing Education Course,
and those senior citizens fight over whose going to get into the arthritis
yoga classes and they stand in line to see who will get into their swimming
class, so I’m not just talking about young students here, like 18 year olds,
I’m talking about senior senior citizens who complain about there’s not
enough parking spots for the handicapped seniors that are there.
Toy: So about 9,000?
Gebhardt: Oh, at least. We have 9,000 just in our full-time students.
Toy: So at any given day or time other than maybe Saturdays and Sundays,
you have a whole load going over there?
Gebhardt: Different times that we experience more traffic than others, like 8:00 a.m.
really is difficult, but it’s also real difficult to cross the street at U of M too
at that time, that’s when they’re really busy. So that traffic study I think is
really important and you know the zoning right now is in abeyance for a
while until an official study is done.
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Toy: Thank you for coming here tonight. But it is a concern and as you alluded
to, I think Councilman Bahr mentioned it, we do have a facility going in it
looks like with some kind of more retail down that way. Thank you for
stepping up to the plate here.
Gebhardt: Thank you.
Toy: Anyone else wishing to comment on this petition?
Jolly: Yes. In response to what Ms. Gebhardt said, typically we have held
Second Reading until we have a site plan? I think we have oftentimes
considered but not demanded a traffic study be done.
Meakin: There has been traffic studies done from the other group as well and
previous studies on Haggerty as well. So there’s been a number of traffic
studies and there’s plans Ring Road on this side as well. These are all
considerations that have been addressed and we’ll continue to address.
Gephardt: If I can, Madam President, in this discussion it brought up a question in my
mind. Like I told you at Schoolcraft, we developed the Ring Road so that
we could go between Six and Seven and not even get on Haggerty. I’m
assuming that this development, where 123 was, they could get out both
on Seven Mile and on Haggerty just going around like the back door. But
is there a back door where that new development is going to be?
Meakin: They’re looking at that as well because they want that road to get to Eight
Mile without going out on Haggerty.
Gebhardt: And those people trying to get out of Costco like me, that there isn’t some
light there, it’s crazy trying to turn left or go south on Haggerty and that’s
the area that we’re talking about, correct?
Meakin: Correct.
Gephardt: Thank you.
Toy: You’re very welcome. To the Petitioner, anything else before we move
forward?
Kelly: No, ma’am.
Toy: Just one other comment, you said you don’t have a user in mind, correct?
Kelly: We don’t have any specific agreements with anybody at this time.
Toy: But you’re talking to folks?
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Kelly: We’re talking to quite a few, yes.
Toy: Okay, fine.
Meakin: Madam President?
Toy: Yes, please, go ahead.
Meakin: I’m going to offer an approving resolution just to move this forward to the
next process because it’s going to take some time to change the zoning.
If we can help you in any capacity, with leads or something like that,
potential businesses that may move in, we’d be happy to help you with
that. Anything we can do to help you. This is exciting information and we
want to make it a success.
Kelly: I appreciate that. And we’re working hard to get some more potential
agreements in place and we would certainly welcome that opportunity to
meet with you and the Mayor to help with our tenants.
Meakin: But you’re adding two more buildings and you’re hearing some concerns
already with the traffic at Seven and by adding two more buildings and
you’re adding more office space, there’s going to be more presence and
more cars.
Kelly: We’re looking to address it and addressing our uses and how that may
impact it.
Meakin: Best of luck to you.
Kelly: Appreciate it.
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Toy: And that will be heard on Monday, December 17. Thank you very much.
As there were no further questions or comments, the Public Hearing was declared
closed at 7:31 p.m.
SUSAN M. NASH, CITY CLERK