Ledios Engineering, LLC & Shakopee Public Utilities have submitted a Rezoning application to rezone property at 2022 Colburn Drive (located east of Colburn Drive and west of County Highway 69/Old Brick Yard Road) from Highway Business (B-1) Zone to Light Industry (I-1) Zone. The purpose of this request is based on their desire to construct an over-height utility structure (electrical distribution substation) at this site. Overheight electrical distribution substations are allowed as a conditional use within the I-1 Zone (and not allowed in the B-1 Zone).

This property was recently annexed into the City. The zoning designation of Scott County at that time was Commercial, which is what the City zoned it. Staff stated in the annexation report that based on discussions between the City and Jackson Township at their August, 2020 joint meeting, properties would be changed when development is proposed for the property, with that zoning to be consistent with the 2040 approved guiding.

Since that annexation, a developer has proposed a project which requires rezoning to the Light Industry Zone. This property is guided Mixed Employment Center, which lists light/advanced manufacturing, warehousing & distribution and office as primary uses of that guiding. Rezoning to Light Industry is generally consistent with that guiding.

The City did receive a public comment from property owners located in the general vicinity of this proposed rezoning (see attached letter). They reference concerns with the proximity to a residential neighborhood, and felt that there wasn't proper notice for this project. Staff did notify in writing property owners within 500 feet of the property and installed a 4' by 8' sign on the property noticing public meetings. The authors of this public comment do live outside the 500 foot mailed notice area, but did provide public comment on the City's website in advance of the Planning Commission public hearing (the website featured a public notice and powerpoint on the proposed project as well). Regarding the proposed location of this substation, the property was zoned commercial when in the Township, and is adjacent to a contractor's business, with residential across the street. At the Planning Commission meeting, a SPUC representative shared that there will be minimal traffic on this site, that the proposed structures will be less than 1/2 the height of the adjacent Xcel towers, and they would be providing extensive landscape screening around the perimeter of their site.

Rezoning Considerations
The City Council may grant a zoning ordinance amendment when it finds that one or more of the following criteria exists:

1. The original zoning ordinance is in error.
2. Significant changes in goals in community goals and policies have taken place.
3. Significant changes in city-wide or neighborhood development patterns have occurred.
4. The comprehensive plan requires another provision.

Staff believe that several of these criteria would be met with this proposal; therefore, staff support the requested rezoning.