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HomeMy WebLinkAbout2019-07-22 PACKET 07.City of Cottage Grove Planning Commission June 24, 2019 A meeting of the Planning Commission was held at Cottage Grove City Hall, 12800 Ravine Park- way South, Cottage Grove, Minnesota, on Monday, June 24, 2019, in the Council Chamber and telecast on Local Government Cable Channel 16. Call to Order Chair Khambata called the Planning Commission meeting to order at 7:00 p.m. Members Present: Evan Frazier, Tony Khambata, Taylor Mills, Derek Rasmussen, Jerret Wright, Roger Zopfi Members Absent: None Staff Present: Jennifer Levitt, City Administrator John M. Burbank, Senior Planner Emily Schmitz, Senior Planner Steve Dennis, City Councilmember Approval of Agenda Frazier made a motion to approve the agenda. Wright seconded. The motion was approved unanimously (6 -to -0 vote). Open Forum Khambata asked if anyone wished to address the Planning Commission on any non -agenda item. No one addressed the Commission. Chair's Explanation of the Public Hearing Process Khambata explained the purpose of the Planning Commission, which serves in an advisory capacity to the City Council, and that the City Council makes all final decisions. In addition, he explained the process of conducting a public hearing and requested that any person wishing to speak should go to the microphone and state their full name and address for the public record. Public Hearings and Applications 6.1 Stan Koch & Sons Trucking — Case CUP2019-025 Planning Commission Minutes June 24, 2019 Page 2 of 9 Stan Koch & Sons Trucking, Inc. has applied for an amendment to their existing conditional use permit for the expansion of a legal nonconforming use to permit the storage and park- ing of trucks, cars, semi -tractors, semi -trailers, portable pump systems, and portable com- mercial generators on their property located at 9450 Ideal Avenue South. Burbank summarized the staff report and recommended denial based on the findings listed in the staff report. Frazier asked if the applicant's response to ordinance criteria was in response to the findings of the Technical Review Committee. Burbank explained that as part of the application, appli- cants are requested to provide responses to conditional use permit criteria. Ann Steingraeber, attorney with Winthrop & Weinstein, 225 South Sixth Avenue, #3500, Minneapolis, representing, Bob Buss, Business Manager of Stan Koch & Sons Trucking, stated that they disagree with the recommendation of denial in the staff report. She explained that this property has been used as a truck terminal since 1987. The 1987 conditional use permit is fairly vague and only approves a truck terminal without any specifics about what that means. They want to clarify through this conditional use permit exactly what can be stored on the site, which currently includes trucks, trailers, and semi -tractors, and adding cars, portable pump systems, and portable commercial generators. This application was prompted by a re- quest from a potential tenant, United Rentals, to utilize this property for storage of some of the items that they use. She clarified that it appears the City's Technical Review Committee was under the impression the proposed tenant would have customers coming onto the site regu- larly to rent these items; however, the property would just be used for storage as it has been used since 1987. The only two items that would be stored by United Rentals would be the portable pump systems and the generators. She stated that she verified with United Rentals general counsel that everything they use is contained within trailers, and there is no accessory equipment that goes with the items that will be stored on site. Steingraeber responded to some of the comments in the staff report. She noted that it would be easier for the City to monitor what is stored on site if the items are visible. She reported that Stan Koch & Sons is willing to significantly invest in landscaping for this property if the conditional use permit is granted. She responded to concerns about increased traffic stating that United Rentals expects that likely there would be two to three trucks leaving early in the morning to deliver items and the same in the afternoon returning items. They do not anticipate customers will come to the property as all rental is done online or via phone. Khambata asked if there would be any circumstance in which a customer would come to the site. Steingraeber responded that they operate thousands of sites throughout the country, and while people driv- ing by might pull in, items cannot be rented from the site, it must be done either online or through calling their office. Khambata asked if customers would be able to pick up their equip- ment onsite even if they rented it online. Steingraeber responded no, adding that their general counsel clarified that if this is a requirement of this city, they will make sure their team or third - party contractors deliver items. Khambata stated that he believes if customers were allowed on site, it would blur the line on what constitutes retail. Steingraeber answered that they tried to have a representative from United Rentals attend tonight's meeting, but they are based in Connecticut and nobody could make it here. However, they clarified that they understand retail sales are not permitted and that is not their intention for this site. Planning Commission Minutes June 24, 2019 Page 3 of 9 Steingraeber stated that from her perspective as a land use attorney, this seems like a good opportunity for the City to improve this property. Currently the site is used as a truck terminal, which is a heavy industrial use. They are recommending that the use remain essentially the same, but there will be trailers stored on site, the company is willing to update the fire lanes and landscaping, and the use would be limited to the items listed in the application. Their client is hopeful that the City would be willing to allow the expansion of the use to this limited request. She noted that the industrial storage use would be staying the same, it is just clarifying the specific items that can be on the site. Robert Buss, Koch Companies, 4200 Dahlberg Drive, Suite 100, Golden Valley, MN, stated that the staff report noted that there would not be any parking lines; however, upon approval they would work with the tenant to have those areas lined out so there would be fire lanes. Khambata asked if there is currently a plan showing what the parking grid might look like. Buss responded no, but a fire lane, particularly around the building, would be laid out to meet the fire code. Steingraeber explained that they weren't laid out because the applicant wanted to go through the application process and would open to the City's recommendation for how the items would be stored. Khambata asked if they had a landscaping and screening plan. Steingraeber responded they had a site plan highlighting where landscaping could be im- proved. She stated that the landscaping team is in attendance to explain their concepts for how to improve the site. Frazier noted that the photo overview of the property showed there were no parking lines on the site. Buss stated that is correct currently. Frazier asked if that was a requirement of the 1987 approval. Buss explained that the parking lot was re -done last fall, but they did not stripe the lot pending the resolution of this application. Burbank stated that even if the use is not retail, there would still be exterior storage, which is prohibited, and automobile distribution facilities, which are not permitted in the 1-2 zoning dis- trict as this property is zoned. He stated that the City cannot approve uses that are not permit- ted within particular zoning districts, as advised by the City Attorney. Rasmussen stated that he does not see the use being offensive in the neighborhood, but does not like that there was no plan submitted for screening, landscaping, and parking lot layout. Mills asked for information from the landscaping team. Scott Folson, Curbside Landscape and Irrigation, 12490 Zinran Avenue, Savage, responded that the landscaping plan would include a variety of evergreen trees to provide screening year-round. They would plant a mixture trees, including Black Hills Spruce that grow to about 50 feet tall. Khambata asked how many of those trees they would be planting to achieve appropriate screening. Folson responded they could plant the trees about every 40 feet and because they have a 20 -foot spread, that would provide a solid screen. They could also offset the trees in areas that are wide enough, which would provide full screening. Khambata asked if they had put together any preliminary plans. Folson stated that he has not yet put together a design. Khambata opened the public hearing. No one spoke. Khambata closed the public hearing. Planning Commission Minutes June 24, 2019 Page 4 of 9 Mills asked what happens if the Commission denies the application. Burbank responded that when the application goes to the City Council, the applicant can provide additional explana- tions as well as a proposed landscaping plan. If the Council denies the application, they could pursue a zoning text amendment. Wright asked if this is denied based on zoning, what is the next course of action. Burbank responded they could withdraw the application and submit a new application to modify the zoning district to allow the particular uses they are looking for. He noted that staff would most likely not be in support of that given the purpose statement of the zoning district. They could also bring in future tenants that meet the current permitted uses, which would still be an amendment to the legal nonconforming use. They could bring in a user to the site that matches the performance standards of the allowed uses, which would only require a building permit if it is not a nonconforming use. Khambata stated that it appears at this point there are some big hurdles to overcome because of the items that are not allowed per the zoning designation. He stated that changing the zon- ing designation may be a more prudent way. He asked what objections there would be to rezoning the property to 1-3. Burbank stated that the 1-3 zoning designation would allow not only the automobile distribution yard but also would allow for heavier uses. Khambata asked if those other uses would not be in line with the comprehensive plan. Burbank stated that if they were to apply for a zoning text amendment to allow for those uses, then it could open up all those uses on other properties in that zoning district. This application will go to the City Council for final disposition. Khambata stated that these are non -permitted uses and they broaden the scope of the original conditional use permit, which was in response to an initial zoning change, so it was allowing the business to continue as it had been operating. This is different as they are trying to expand and bring in a different kind of tenant than what was originally permitted, although the original conditional use permit was vague, he believes it was pretty clear that it was meant to allow that business to continue to operate as it had been. He believes that the application should be denied and suggested that they could come back with a tenant that would be more conforming to the current zoning. Frazier made a motion to deny the amendment to the existing conditional use permit based on the findings in the staff report. Wright seconded. Motion passed unanimously (6 -to -0 vote). 6.2 Las Margaritas — Cases CUP2019-026, SP2019-027, & V2019-028 Stotko Speedling Construction, on behalf of Mopeca Real Estate, LLC, has applied for a conditional use permit to allow a restaurant with liquor to be located at 7164 East Point Douglas Road; a site plan review of exterior remodeling and patio; and a variance to mini- mum parking requirements. Burbank summarized the staff report and recommended approval based on the findings of fact and subject to the conditions stipulated in the staff report. Planning Commission Minutes June 24, 2019 Page 5 of 9 Rasmussen stated that he agrees with the staff report and doesn't feel that the 150 parking spaces are appropriate. The site appears to have adequate parking, although it is a little below ideal, but any business who comes into this space would face similar challenges. Khambata agrees, stating he believes that restaurants where a large portion of the square footage is the kitchen, the square footage formula skews negatively for them. He asked staff how to amend this issue for the future. Mark Simacek, Stotko Speedling Construction, 1303 Eddy Street, Hastings, stated that the presentation and staff report were thorough. He explained that the owners plan to maintain the landscaping as they do at their Hastings restaurant. He noted that if this was not Las Margaritas, the site would most likely be another restaurant that would face the same parking challenges. He believes it is prudent to approve the parking variance. Mills asked if the parking situation in Hastings is similar to what is proposed for this location. Leslie Castro, Las Margaritas, 2100 Vermillion Street, Hastings, stated that they had to close a couple entrances to their parking lot to be in accordance with MnDOT requirements. Khambata asked how many seats and parking spaces they have at the Hastings restaurant. Castro stated that she did not know, but their parking layout was approved by the City of Hastings. Wright believes the proposed parking will be a better situation than at their current restaurant. Khambata opened the public hearing. No one spoke. Khambata closed the public hearing. Khambata stated that from his perspective seeing that other long-term tenants in Cottage Grove have been operating on that 1 -to -3 model without any major complications, he believes it would be disproportionate for the City to adhere strictly to the square footage model. Mills made a motion to approve the variance based on the findings of fact and subject to the conditions in the staff report. Zopfi seconded. Motion passed unanimously (6 -to - 0 vote). Wright made a motion to approve the conditional use permit subject to the conditions in the staff report. Mills seconded. Motion passed unanimously (6 -to -0 vote). Zopfi made a motion to approve the site plan review and subject to the conditions in the staff report. Wright seconded. Motion passed unanimously (6 -to -0 vote). 6.3 Bailey Woods — Cases ZA2019-029 & PP2019-030 Pulte Homes has applied for a zoning amendment to change the zoning of property located on the north side of 65th Street and west of Highlands Hills Boulevard from R-2.5, Resi- dential, to R-3, Single Family Residential, with a Planned Development Overlay (PDO). Pulte Homes has also applied for a preliminary plat to be called Bailey Woods that would subdi- vide a 19.94 -acre parcel of land into a residential subdivision consisting of 41 single family homes and 1 outlot. Planning Commission Minutes June 24, 2019 Page 6 of 9 Schmitz summarized the staff report and recommended approval subject to the conditions stipulated in the staff report. Khambata asked if maintenance of the corridor along 65th Street would be required to be done by the individual homeowners or the City. Schmitz responded it would be the individual home- owners by covenant, but if it was not maintained, the City would complete the work and po- tentially assess the property owner for that work. Khambata asked if the developer has a plan in place to ensure that the water from the stormwater detention pond does not encroach on the existing homeowners. Paul Heuer, Pulte Homes, 7500 Flying Cloud Drive, Suite 670, Eden Prairie, provided back- ground on his company. He described the property they will be developing, which has woods, wetlands, and access issues that limit how they can develop it. They want to preserve the wetlands and the woods and connect to the existing trail corridor. He stated that the lots along 65th Street will be deeper to allow a berm and landscaping to help mitigate noise from the road in order to provide a backyard for the homes. The homes will be 50 feet wide with three - car garages ranging in size from 1,700 to 2,000 square feet, excluding basements. The price range will be from the high $300,000s to the high $400,000s. He stated that one of the City requirements is that all homes have some stone on the exterior; however, they would like to have a variety of facades. To provide that variety, they will have stone as an option. He ex- plained that Pulte has a monotony code, which is a map showing what exterior elevations were chosen of the 100 or so elevation options to ensure there isn't the same type of floor plan and facade immediately across the street, next door, or kitty corner. Their application is consistent with the City's comprehensive plan, utilizes the planned access points for the property, has modern lot and home widths and strong architecture, preserves wetland and woods, provides dedication of more open space than required, and includes highly energy efficient homes. Khambata asked if there would be additional vegetation on the deeper lots adjacent to 65th Street. Heuer displayed the landscape plan for the buffer area along those lots. Rasmussen asked if they are proposing to not meet City Code requirements for percentage of brick or stone on the homes. Schmitz responded the requirement is part of the East Ravine Master Plan, so the portions of the City not in that area, which includes this property, do not necessarily have to follow those requirements. Levitt explained that during the last 10 years, a lot of different trends in the home building marketplace have occurred. The East Ravine Master Plan was developed in the early 2000s, and now that the market is driving more crea- tive home styles with added architectural features and amenities that weren't thought of at that time. Staff does not feel there is any loss to the value of the homes. She noted that this is a planned development overlay, which provides flexibility to deviate from the code. The devel- oper will construct the trail, provide substantially more park and open space than required, preserve a lot of the wetland area, and have been very conscious of design, so staff is sup- portive of a planned development overlay. Khambata stated that his understanding is the original intent of the ordinance was that a por- tion of the facade of each new home would be brick to break up and add variety to the aesthetic of the neighborhood, so in this neighborhood they would be getting away from that singular building material and achieving variety through the use of several building materials. Levitt responded that was well summarized. Planning Commission Minutes June 24, 2019 Page 7 of 9 Zopfi asked based on the PDO and the density requirements could the applicant add other housing types, such as quad or twin homes to the development, and if so, how many units could be added to this plat without exceeding the four units per acre density. Levitt responded that the current density on this site is 2.06 units per acre. She noted that the land use is low density residential. The smallest lot size allowed would be a 55 -foot wide villa style product, but she feels comfortable that the applicant will stay with the 65 -foot wide lots because this subdivision will be developed in one phase. Heuer stated that once they get the preliminary and final plats approved, they are stuck with that lot size. He stated that when they record the final plat, the internal lots will all be 65 feet wide and the corner lots will be 80 to 85 feet wide, so they would need to build within those boundaries or they would have to come back before the City to ask for a re -plat. He stated that probably won't happen because this property is intended to be single family, it is next to a single-family neighborhood, and it is a small enough development that even if things didn't go well, they would continue on. Khambata asked about stormwater management. Levitt responded that the developer looked at the topography of the land and the actual opening in the vegetation to find a strategic way to place the stormwater basin to serve the site and provide both rate control and water quality. The developer has adhered to what is defined as the ordinary high water as it functions in relation to the adjacent parcels, and their plan has the appropriate emergency overflow. She stated that they have met all the City's stormwater guidelines. Khambata opened the public hearing. Debroah Ihns, 6508 Highland Hills Lane South, expressed concern about the lots being too narrow, continuity between the existing Highland Hills neighborhood and the proposed Bailey Woods development, house sizes, property values, and the homeowners association. Katie Karels, 6505 Highland Hills Lane South, asked how the berm is going to connect from the back of her property to the new development. Schmitz stated during construction they will utilize the current field access, and once that is removed, the berming will connect right to the property line, which is where the existing berm ends. Heuer stated that they try to stay on their own property to reduce disturbances to existing neighborhoods. He noted that there is an existing berm that tapers down at the property line; the new berm will taper back up to the next lot. Karels expressed concern about the appearance of having a divot between the two lots. Heuer stated that he would meet with Karels to discuss options about connecting directly to their berm. Heuer then responded to Ihns' questions, explaining that the homes they are proposing would be similar in size to the homes in Highland Hills, but would be deeper and narrower. They will have the same side yard setbacks. The values of these homes will be very comparable to the existing neighborhood. He then noted that the Highland Hills HOA has legal documents rec- orded against the properties in the development that specify what properties are within their HOA; this property is not within that HOA. The Highland Hills HOA will continue to operate as it has been. In Bailey Woods, the individual homeowners will be maintaining their own yards. Heuer stated that Pulte did not develop Highland Hills, so the homes would look a different. Ihns stated that she is not concerned about the value of the homes; she is more concerned that the homes will be crammed into a small space. She also noted that there are no weaving roads, just a road that goes in a circle. Heuer stated that it is a complicated discussion to talk Planning Commission Minutes June 24, 2019 Page 8 of 9 about why lots have narrowed. Over time the costs related to development increased at a much quicker rate than their incomes for a variety of reasons. There are issues with housing affordability starting in the metro area. The solutions are very complex. Narrower lots and homes have been the only easy solution, but the issue is only going to get more difficult to resolve. He explained that they are not doing this to the neighboring properties; it is what the market is doing to them. Karels stated that by doing the development this way, all they are doing is adding to the prob- lem because the lot sizes are below the minimum in the adjacent neighborhood. There will be no continuity, and the homes will be completely different. She disagrees with the widths of the lots, suggesting that removing one lot and spreading out the remaining lots could make a big difference. No one else spoke. Khambata closed the public hearing. Khambata stated that he drove through the Highland Hills neighborhood in preparation for this application. He saw that the lots are wider than what is being proposed, but the houses would be no further apart. From a density perspective, the developer is moving a side room to the back of the house. He would be more concerned if they wanted to go from a 15 -foot side yard setback to a five-foot side yard setback, but the side yard setbacks that they are proposing are already in accordance with the existing neighborhood. There are other newer neighborhoods in Cottage Grove who have already applied this cost-saving measure. The houses are more diverse, but are not closer together, just narrower and deeper. He believes this is in keeping with market trends and is what is going to sell. He noted that the developer is going to give some land back to the City and keep this portion of the community in step with the green space and the trail system already in place. He stated he is in support of the application. Zopfi made a motion to approve the zoning amendment and preliminary plat subject to the conditions in the staff report. Frazier seconded. Motion passed unanimously (6 -to -0 vote). Approval of Planning Commission Minutes of May 29, 2019 Frazier made a motion to approve the minutes of the May 29, 2019, Planning Commis- sion meeting. Wright seconded. Motion passed unanimously (6 -to -0 vote). Reports 8.1 Recap of June 2019 City Council Meetings Levitt provided a summary of actions taken at the City Council meetings on June 5 and June 19, 2019. Dennis explained the cost factors that help to set housing prices and some ways developers have to bring those prices down including developing on smaller lots to get more houses in the development. Planning Commission Minutes June 24, 2019 Page 9 of 9 8.2 Response to Planning Commission Inquiries None 8.3 Planning Commission Requests Khambata requested that the restaurant parking ordinance be discussed and possibly amended. Levitt responded that staff would look at that ordinance, noting that it was discussed in the past, and the Planning Commission recommended leaving the ordinance as written. However, given the marketplace and the constraints on various sites, staff would bring this topic back to the Planning Commission, including ordinances from other communities. Frazier asked for an update on the 2040 Comprehensive Plan. Levitt explained that the City submitted our comprehensive plan to the Metropolitan Council, who provided a response to our submittal on issues that need to be addressed. It is anticipated that the comp plan would be back before the City Council for formal adoption in late August. Mills announced her resignation from the Planning Commission because she is moving out of the City of Cottage Grove. Dennis and Commission members thanked Mills for her service to the City as a member of the Planning Commission. Adjournment Mills made a motion to adjourn the meeting. Wright seconded. Motion passed unani- mously (6 -to -0 vote). The meeting was adjourned at 9:05 p.m.