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City Council Work Session Memo <br />Meeting Date: April 12, 2021 Public Hearing: <br />Agenda Item Number: A Consent Item: <br />Originating Department: Administration General Business: <br />Prepared by: Brad Larson, City Administrator <br />Action Requested: <br />Discuss a request by KSI, Inc. to expand the Post Office building located at 6100 McColl Dr. <br />Guiding Principle: <br />“Savage will provide high quality, innovative services to meet changing needs.” <br />Background: <br />The Savage Post Office was built in 1995. The City of Savage purchased the Post Office building <br />in 2012 to help keep a United States Post (USPS) Office presence in the City. The USPS downsized <br />their presence at the location, which left room for other renters/users of the Post Office building. <br />Starting in 2014 the City began renting the 4700 square feet of the Post Office building to KSI, <br />Inc. KSI, Inc. is owned by Bob Niederluecke, a Savage Resident. The business distributes hose <br />clamps, inserts and cable ties. KSI’s lease with the City of Savage was renewed in 2019 through <br />the end of 2021. <br />KSI contacted the City in February indicating they needed room to expand their business and <br />asked if there was interest in allowing KSI to add on to the South side of the Post Office Building. <br />The building is currently zoned C-1, Neighborhood Commercial. The C-1 zoning district does not <br />allow warehousing as a primary use, but it can be a secondary use if it is less than 30% of the <br />building area. KSI is interested in expanding the site 36 feet to the south, which would make up <br />approximately 3600 additional square feet. However, the expansion would likely be more, <br />because KSI is also interested in adding a mezzanine level for office space. This may also increase <br />the height of the addition. KSI’s current useable area of 4700 square feet is right at the allowable <br />30% of warehousing space for the building. An expansion would require the site to be rezoned <br />to BP, Business Park District. <br />The Economic Development Commission considered this request at their March 17 meeting, and <br />they recommended against rezoning the building. This in effect, would not allow the expansion <br />to move forward. While the EDC would like KSI to stay in Savage, they felt it would be more <br />appropriate for the private market to address the additional space needs. They were also <br />concerned the expansion could negatively affect the campus atmosphere the City has developed <br />with the Post Office, Fire Station, City Hall, and the Library.