Planning Commission - Regular Meeting

Pullman, here. Hoff, here. Klein, here. Pearson, here.

Thank you. Moving on to the minutes from the August 11th meeting. Any issues or corrections? Otherwise, I'll entertain a motion to approve.

I make a motion to approve.

Second. We have a motion and a second. All in favor say aye. Aye. Opposed, same. All right. Minutes are approved. Are there any visitors to be heard about issues that are not on the agenda?

That's you guys. Yeah, if you want to step up.

Yep.

I guess I'm here with Phil Teese. He's our grant manager and I'm the general manager and CEO of K-Legger Services. So just kind of wanted to introduce ourselves a little bit with the project going on and answer maybe some questions you might want to have. You know, a few questions here and there, but we're happy to be in town looking to work with the development corp on getting the ground and everything to where it needs to be. And we'll probably be in front of you guys here in a few months with the conditional use and stuff. So just wanted to introduce ourselves and say we're excited about being here in town and hopefully be part of the community and stuff we have and we'll fill if you have anything to use.

Yeah, just, you know, we're here to answer some questions, I guess, from, you know, nothing prepared. We just kind of stopped in, but... We kind of want to get things moving here this fall before it gets really cold here this winter. So we just want to make sure that we can answer any questions and keep the process moving, I guess.

Is this soybean processing?

Yes, the High Lake soybean processing plant over on Fegan Park.

Yeah, so if you, I guess, just, I've heard about it, obviously, and I've seen a couple things on it, but if you want to just give, like, a high-level overview of what you have planned.

Yeah, so currently we had a meeting in Dale Rapids here with Pioneer out at Sue, a Pioneer dealer, last week. We had a good turnout with producers. So we're looking to hopefully procure about 50,000 acres. So that'll maybe give us about two to three million bushels of our high lake soybeans that we need to process for the dairies. So then we also, with this facility, it adds a 90 cent premium to the growers, to the farmers in the area. And then also adds a value added commodity to the dairies as well as cheapens up their rations. So win-win for the farmers and for the dairies. And we're looking at the plants going to be around $8 to $10 million is what is coming in for the budget. And we're looking to add probably six to eight jobs. to the community starting. And we're looking now to start advertising for some jobs shortly in the community. And then we have some other people that are, I feel is going to be here quite a bit, kind of ramrodding the project and kind of be the face here. And then we're looking to add some local people as well as the year progresses, but we want to be operational by September of 27.

Is this a special soybean that has to be planted? And is the difference for the $0.90 incentive, is that because the beans don't get as many bushels per acre as maybe the others?

No, it's a Ohio Lake. It's an IP product, so it's a specialty bean that can't go anywhere else. So it helps to incentivize farmers into planting it. Okay. and also has a higher oil content than regular commodity beans that currently are sold around the area.

Do those beans then go from the field to like the elevator to you? Like what's the process from the farmer itself?

Yeah, some have to store some at home. So they'll have to store some at home. We will be able to take, we're going to have 500,000 bushels of storage currently at the facility and then farmers will have to bring them in as we need it or as they contract it through us. so in terms of truck traffic it'll be just like grain trailers like your typical from the farm i mean the harvest would be busier and then we're going to process about it'll be about 20 000 a day yeah you would expect like 10 to 20 trucks outbound per day yeah excluding part you know harvest is gonna be a little busier but sure product or live bottoms And we'll have more of those numbers in front of you when we come. But we got that all mapped out and what that's going to look like.

Is it something that's added to an existing forge for them? Like is it something you add to like corn silage or is it a standalone product that they use?

Yeah, so it's replacing basically a fat product that most dairymen use already. So it's replacing some higher cost ingredients that are imported from Malaysia or Canada or wherever the case is. So it's a locally sourced fat product that they can basically replace, you know. imported products and the cost savings. And then there's also the output, better butterfat content improvement, herd health, milk production output, all those intangible things that we don't really have good data on yet, but our customers have indicated that there's other benefits.

Do you have any other operations in South Dakota, any other processing plants?

Yep, so our current roasting facility that this will be kind of a mirror image of is in Parkston.

Parkston, okay.

And then we have a feed mill in Kaler, South Dakota. So our main business is hog feed. And then we also have a grain facility in Tabor, South Dakota.

Okay.

So it's our fourth community that we're servicing.

Okay, thank you.

And we do full, in our traditional business, we have grain merchandising, full service agronomy, highlight soybeans, and then we do have, we have a fleet of trucks that we do transportation for, for producers.

And we have about 85 employees that we currently have in our company. So not a big company, but, you know, decent sized.

One thing that, you know, we've kind of talked about a little bit, and I think, you know, you probably get questions on is, like, the smell of the process and stuff. I guess, can you just comment on that generally?

Yeah, I mean, I don't know if you can say a smell order, because that always gives a bad taste in people's mouths. But, yeah, it's like a roasted popcorn.

No.

It's, our facility in Clarkston is, I mean, it's right across the road. It's right in town. It's not in town. It's right outside of town. So, but, yeah, there is, it does have motor to it, yes.

It's not a, it's not an intense odor, it's like a popcorn smell. And I'd encourage anybody to come to our facility and see it.

So it'll be like a very similar, is it like an exact same? Here it's larger? Does that mean like a bigger area that the smell would

No, we can store more of our finished crop.

Okay, that's what I was just asking.

I didn't know if it was... The output should be the same.

That's what I was wondering.

Like in parks, you have 250,000 bush stories, we're going to have 500.

Gotcha.

Okay.

Thank you, guys.

Yeah, appreciate you stopping in.

Yeah. Want to stay hot?

Always good to see a Scotland face.

I know, Ben Pearson, long time man. I didn't recognize you at first. I'm like, God, it's Ben Pearson.

Thank you. Thank you.

Do you need us really more or is it good to go? No.

They don't have any more questions. I appreciate you stopping by. Okay. Thanks. Appreciate it.

See you.

Yeah, Phil is, or no, Phil's from Scotland originally. She is, yeah. All right, moving on to the agenda item. We have a conditional use request. Yes, we have a public hearing on conditional use request.

Mr. Crisp has submitted a conditional use permit for a mixed use of the property located at 1403 North Highway 77. It's currently zoned General Business B2. I'd like to convert the space that was used by Queston to two rentals. I have that right? And he's here to answer any questions or comment further on the permit.

I think I know where this is at. Is this out where like by the bus barn and that's neck of the woods?

Yep.

Yep.

Okay. Yeah. On your summary, Matt, it has converted into two rental apartments. In the application, it has two short-term apartments. When we talk about vacation rentals by owner, is that what we're talking about here? Or maybe, Mark, you'd like to expound on that. I'm just kind of curious if this is... What exactly is the nature of the rentals? Is it to... Obviously, it's other than a business.

When I applied for that, my daughter, Courtney, manages all the apartments. Sure. I just want to make them. Anyway, she has a lot of call for people who are building a house. their lease is up and the house ain't done and they need a two or three month place to stay in. And we just, we don't get into that. Yeah. And so anyway, I put on their short-term rentals. There's a real, there's a real need for it. Um, But I want to base this application on short-term rental. We get a baby boomer in here that wants to live with us for four, five, six years, and we certainly aren't going to say, no, you've got to get out.

No, I understand. I wanted to make sure it wasn't a vacation rental versus short-term.

There's just a lot of short-term need for people or they bought a house and they can't get in it, but they sold there and they got to get out. You know, that sort of thing. But I don't want to base this application on just that. We really do target baby boomers, and we have a lot of baby boomers. So anyway, the reason I'm applying for this is Quest Church occupied two spaces in that building. And Quest Church had an opportunity to rent or buy or whatever it is that they're doing with the Old Baptist Church. And good thing for them, you know, much more fitting for what they need. So anyway, we've sat there and, you know, off and on trying to rent it out and everything. And the problem since COVID, if you drive up and down our streets, the dentist built a new building. and he didn't own the current building that he was in, and of course he built space on it to lease out. It's currently been sitting there empty now for, I don't know, four years. The old dentist building, other than the headhunters that are in there, the old dentist space has been sitting there empty for, I don't know, four years. The old video store that was on the north end on that side of Highway 115 sat empty for years. I think there's like a secondhand store that kind of finally went in there. You take Carrie Karst in her new buildings on the north side. She had an empty space and she just recently rented it to a Chinese massage therapist or something like that. Since COVID, the worst thing in the world you can own in this town is commercial property. We're down $50,000 on this building. And with what's happened with my health and that building and other things, I have to stop the bleeding. And so we're here to apply. Our business is apartments. Our business is doing well. There's more and more need for apartments all the time. And so that's why we're here. I've got to stop the bleeding. You know, we get the right tenants in there. Nobody will ever even know the difference. And the building happens to kind of be set up, you know, it has four individual front doors. So, you know, we can do it to where anybody can pretty much have their own front door.

Okay, good. Thank you. Mm-hmm.

Any other questions or comments? No. I'll entertain a motion to approve. A motion to approve.

I'll second.

We have a motion and a second. All in favor say aye. Aye. Opposed say. Motion carries.

In the meeting?

Just about. Just about.

It's been a few years since I've been here. Boy, have we changed this tree.

It's just getting more gray, Mark. That's the only thing. The only thing that's changed is it's getting more gray.

I think you just said we're getting older.

That's all good.

All right.

Thanks, guys.

Yep. Yep. Thanks, Mark. All right. On to old business, the VRVO discussion.

Yeah, so this is coming about from the last meeting when we had a resident come in asking about looking at adding VRBO as an approved thing for the community. In your packet, I attached three different options. done some communicating with Seacog about this, and he provided us with three options, one from Canistota, one from LEED, and one from Sioux Falls. Having a conversation with him about this, talking a little bit with Steve today about this, we really like what Sioux Falls has done. That's the last, I think the last two pages of those three documents where it is, sorry, the last four. It's a permit process. So basically anybody who would like to do the VRBO would have to prove that they have all the required state sales tax, things with the state, all of those things. Are you living here? If not, who's going to care for things like show these checklist items? And then there's a permit fee. They apply for it, and then it's approved here. And then they're off and running. kind of feel like that might be the most appropriate thing for our community. I don't know that we're going to have a huge rush of people that want to do this. So we thought that this would be a good way to introduce it. If we do start seeing that we've got a lot of folks applying and asking for a permit, we could entertain maybe a little bit stricter ordinance. But that's kind of where we're leaning towards is more of a permit process.

Just Trying to read through, and I can't find it yet, but how, when they, so it looks like a $50 permit.

Right.

Does it say in here how long it lasts? Like, is that an indefinite permit to do it? Is it an annual? Yeah.

I know on the Canistota, they specify every year.

That's what I was wondering. I think it would be good.

If Sioux Falls doesn't have that, we could add that too.

Yeah, I just think it would be a good thing to add just so that, you know, if you do have one that is a problem, that they have to come again the next year and say, hey, I'd like the permit. And then at least at that point, I mean, obviously, hopefully you can address some things in between, but at a minimum...

on an annual basis you can kind of reassess whether you want to allow it i think that that just makes sense i mean we've got the annual permit for golf carts pet license peddler license all the things so i would figure that this would fall similar process okay there is oh i'm sorry no but then say there is something in here too about um a certain number of nuisance violations or anything looks like that there where you could there's a revocation process that you could take it away

I really like that.

Within the year, I would assume, that if there's a problem property. Yeah, I think Canistota, they only had like one that they would go in front of, but I think Sioux Falls was... Don't mess with Canistota. Yeah, three or four. We really like the Sioux Falls one. Yeah. The only thing I like about Canistota, and I don't know what your thoughts are, they had a limit. And I know it's not going to go rampant and stuff like that, but it's... Do you hate to it'd be nice to start out with something or are you thinking to start off with nothing and see how it goes and then see if we need to put some type of a cap on it or a limit on it?

That is kind of where I'm leaning is just to kind of see where we hold this permit process out, see how many we get. And if we need to come back and say, all right, we need to. 20, 15, whatever that number is. Or, I mean, if you guys want me to put in there, we're going to do a permit, but we're only going to have X number of permits available per year. Oh, I don't know.

They had four. I think they had four in there, wasn't it? Yeah, four. I didn't know what the thought process was. You always hear the negative side of VRBOs, that they raise up the values. It's impossible for somebody to buy a starter home because the VRBOs buy them all out and stuff. But I don't see that.

From conversations with Nick at Seacog, we're not seeing that on the east side of the state. That's a Black Hills problem. They're trying to control that. He's not even hearing that coming out of Sioux Falls for a million.

I figured that was the case. So the only other thing is because I'm really slow and ignorant. I could not tell the difference of residential rental unit versus a short-term rental unit besides... It almost looked like residential rental unit could be not necessarily for somebody staying in there. I don't understand.

I think the real difference is the residential rental would be somebody who owns a home and then rents it out to a family that they live in there for a year, two years, like they have a rental lease for the short term. It does say it changes like the folks don't stay in there for more than 14 days at a time.

Right. What's the residential rental unit then?

That would be somebody who, if I owned a home and then just rented it out to another family for a year, two years.

So basically the rental properties that are around. The rental properties that we have in town. Yeah. So that's what I was thinking it was, but I was thinking, why would that be? You're lumping that in then? Yeah.

It looks like a residential rental unit can be a short-term rental unit as well.

Yeah, I was just curious about the difference. So it's basically rental houses, and don't we already have something? I'm curious, do we have something on the books about rental houses and upkeep and that stuff? And if not, then I'm even more of a fan of this because of, We know some rental properties not too far or in the neighborhood and stuff that they are not keeping them up and stuff. Well, let me look.

So outside of the...

that annual permanent thing i mean are you looking for like is there anything else that you want me to put into the formal i mean we'll do the same thing as we did the other ones i'll take your feedback i'll create the more formal thing and then october will be our our big one because all of these kind of touch the same ordinance areas so we're doing it all so do we

approve and then it goes to the council to approve, or does it just go straight to the council?

It goes to here first for your recommendation, and it still goes to the council regardless of... Yeah, I knew they signed it, that's why I didn't know. Yeah, I'm not currently seeing anything in there that has anything with rental properties. We don't even have a definition that I'm seeing. So I think those probably just fall under the R1 residential. Now we've got specifics on hotel, motel, but nothing on residential rental. So we could clean that up a little bit with this if we wanted.

I mean, the Kanesota and the Sioux Falls were both, I thought, both very similar. One was more succinct than the other.

One's 45 miles, one's 50 miles. I thought the Kanesota must have followed Sioux Falls up to a point.

Yeah, I think what is appealing to the Sioux Falls one, again, the permit process, it's, you know, we can change the rates with resolutions versus having to update ordinances and go through all of that process versus, hey, this is the hardcore ordinance of it.

Okay. So maybe just kind of keep looking it over a little bit and just let you know if we see anything in the meantime that we'd want to make sure to get in there. Absolutely.

Yep. If you want to take a little bit longer and look at those and have more thoughts, yeah, definitely let me know. And I said I'll bring the more formal published document in October. But I at least wanted to get some initial thoughts and the direction you'd like me to go.

Okay. Yeah, I think, I guess, does everybody kind of agree that this viewpoint looks good in that direction?

Yep.

Okay. Anything else on that, or is that good?

That was it.

That was it. Any new business?

New business? No, we didn't. As I mentioned earlier, we talked about the sign ordinances, the ADUs. Since they're all touching the same area of our codebook, we're kind of doing all of this at one time in October. Okay.

No officer report, other reports and updates. No meeting chair report, so I'll entertain a motion to adjourn. So moved. Second. We got a motion and a second. All in favor say aye. Aye. Opposed say aye. Motion carries.