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HomeMy WebLinkAbout2019-05-29 PC Minutes City of Cottage Grove Planning Commission May 29, 2019 A meeting of the Planning Commission was held at Cottage Grove City Hall, 12800 Ravine Park- way South, Cottage Grove, Minnesota, on Wednesday, May 29, 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. Roll Call Members Present: Evan Frazier, Tony Khambata, Taylor Mills, Derek Rasmussen, Jerret Wright, Roger Zopfi Members Absent: None Staff Present: Christine Costello, Acting Community/Economic Development Director Emily Schmitz, Senior Planner Matt Wolf, Economic Development Specialist Steve Dennis, City Councilmember Approval of Agenda Frazier made a motion to approve the agenda. Mills 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 ca- pacity 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 T-Mobile Generator for 81st Street Water Tower – Case CUP2019-018 T-Mobile Central LLC applied for a conditional use permit to allow the addition of 207.23 square feet of ground space to accommodate a new backup generator at the 81st Street Water Tank, 8520 81st Street South. Planning Commission Minutes May 29, 2019 Page 2 of 10 Schmitz summarized the staff report and recommended approval subject to the conditions stipulated in the staff report. Khambata stated that he believes the proposals fits with the current use. Pierre Giguere, 1928 Aldrich Avenue South, Minneapolis, explained that the generator would run in only two situations, which would be once a month for 30 to 45 minutes for maintenance reasons and if there was a severe prolonged power outage. Mills asked about noise levels when the generator is running during an emergency. Giguere responded that there is some noise when it is running. He explained that if it was running fully at 170 feet, it would be at a decibel level considered to be what is heard in a normal urban environment, such as a dishwasher. He noted that the closest property to the site is about 200 feet away. Rasmussen asked how tall the generator would be sitting on the concrete pad, and how it would compare to the five-foot fence. Giguere responded that the pad would be at ground level and the fence would most likely be taller than the generator. Khambata opened the public hearing. No one spoke. Khambata closed the public hearing. Mills made a motion to approve the conditional use permit subject to the conditions in the staff report. Wright seconded. Motion passed unanimously (6-to-0 vote). 6.2 Calarosa 4th Addition – Case PP2019-019 U.S. Home Corporation, dba Lennar, has revised their preliminary plat for the Calarosa subdivision. The revised preliminary plat proposes to replace 6 quad buildings (24 dwelling units) approved in the Calarosa 3rd Addition final plat with 6 town home buildings that would have 6 units each for a total of 36 dwelling units. Calarosa 4th Addition will be located east of 63rd Street and south of 61st Street. Costello summarized the staff report and recommended approval subject to the conditions stipulated in the staff report. Paul Tabone, Lennar, 16305 36th Avenue North, Suite 600, Plymouth, stated that he would answer any questions. Khambata asked for background on how the market has changed and what prompted Lennar to ask for this revision. Tabone responded that currently they are building quad homes in two communities, Cottage Grove and Rogers. What they have found in the market is that people do prefer single-level living, however they are getting feedback that the quad homes are priced a little bit above what people are willing to pay. There is a certain portion of the demographic that would live in a single-level home that would also live in a two-level plan. Lennar’s back- to-back and row townhomes continue to do well in the marketplace even with stairs, so they are trying to diversify the options. The quad homes are more age targeted for retired people Planning Commission Minutes May 29, 2019 Page 3 of 10 or those living alone, and the townhomes appeal to young professionals and families, so the development would cover both ends of life cycle housing. Khambata asked if that is a similar demographic to their single-family product but at a lower price point. Tabone responded yes, but he noted that as far as price, they will be comparable. The lower priced quads start about $270,000 and go up to about $300,000, and the townhomes would be in that same price range but would have a couple hundred square feet extra in size. Khambata opened the public hearing. Wayne Johnson, 7862 62nd Street South, stated that he was on the City Council when the original decision was made to change the zoning for the Calarosa development. He stated that he was against the decision at that time. This development is in in his community, so he has a first-hand view of why he believes this does not fit. He noted that on May 15, which was the day the public hearing notice was published, there was a workshop with the City Council and area builders to discuss how the city could help them, find out their concerns, and what they are seeing in the marketplace. The response was that houses in Woodbury were getting bigger or staying the same but the lots were smaller so the homes are more affordable. However, Lennar did not report during that workshop that the quad homes were not selling and they wanted to change to townhomes. He stated that as County Commissioner for Washington County, he sits on a committee that looks at how to bring affordable housing into communities. He noted that Cottage Grove has a lot of area to make planned communities with townhomes to address those issues. He stated that the townhomes will not blend into the community due to size and height and the building materials in the pictures do not look like what is being used for the quad homes. Johnson stated that this will to have a long-term effect on the whole City, not just this neighborhood. He expressed concern that other builders will try to change ap- proved plats to add townhomes, that will still fit within the zoning so the City would have no way to deny that change. He stated the Council originally approved the zoning change with a planned development overlay that regulated what the houses would look like and where the single family and quad home would be located. He strongly believes that if Lennar had come in with this plan originally, it never would have been approved. He believes the original ap- proval was wrong and is asking that the Planning Commission deny this application. He stated that the Commission has to look at whether this decision makes Cottage Grove better or worse. He believes the townhomes will change the feel of the whole area. He stated that he doesn’t want Cottage Grove to become Woodbury, with houses on one street and townhouses on the next street. He stated that he is strongly against this proposal, he hopes the Commis- sion sees the reasons why, and that they look at the big picture of how this can affect the City beyond this one neighborhood. Chris Reese, 7801 62nd Street South, voiced concerns about this proposal and that he highly disapproves of this. He believes they found a loophole and that this proposal is out of place. He worries that the townhomes would become rental properties. He is also concerned about the amount of parking. He noted that where the townhomes are proposed is the highest ele- vation in the development and would become the focal point. Cathy Behr, 7712 60th Street South, stated that she chose to make an investment by buying in her neighborhood and that she serves on the homeowners association. She does not think this option bodes well for the landscape and curb appeal and doesn’t fit with the original plan. She stated that this does not fit into the neighborhood and asked the Planning Commission to not approve this revised plat. Planning Commission Minutes May 29, 2019 Page 4 of 10 Christine Lentz, 6049 Idsen Avenue South, stated that she just purchased a villa in the Calarosa development and paid extra to live on the pond but did not pay to live in a neighbor- hood with townhomes. She showed the Commission the brochure they received from Lennar that only showed quad homes, villas, and single-family homes. They would not have moved into the neighborhood if they knew there would be townhomes. Stacy Ekholm, 7762 60th Street South, stated that she has lived in the Pinecliff neighborhood for almost seven years, and enjoyed living in a semi-rural area. She understands that devel- opment happens but the Calarosa has already impacted their lifestyle. She stated that there have been issues with the construction crews including driving too fast, dropping cigarette butts, and littering. She stated that Lennar should look at how they are marketing and building the quad homes if they aren’t selling instead of changing to townhomes. She expressed con- cern about increased traffic through their neighborhood. Dennis and Carol Horan, 8001 63rd Street South, stated that they live in the first quad that was built. He expressed concern about the number of people living in each townhome unit, parking, traffic, change of demographics, whether the townhomes would be incorporated into the quad home HOA, the difference in price between the quads and townhomes, possibility of the townhomes becoming rental properties, parking, the view of the townhomes, and Lennar asking for more townhomes in the future. He asked when this proposal would go to the City Council. Khambata responded at their June 19 meeting. Cheryl Rowley, 7702 60th Street South, stated that she lives in the Pinecliff neighborhood and considered buying one of the villas in Calarosa but won’t if the townhomes are built. She stated that she is opposed to the townhomes as they were not initially part of the development. She thinks replacing the quad homes with townhomes shows poor planning. Peter Cooley, 7826 62nd Street South, voiced his opposition to the change from quad homes to townhomes for the same reasons that have already been voiced. He noted that no one has yet testified in favor of the proposal. Drew Hoops, 6365 Homestead Lane South, stated that his family enjoys walking through the Pinecliff neighborhood, but with the increase in traffic they are more hesitant about that. Nikki Thommes, 7855 62nd Street South, stated that she is not in favor of the townhouses. She stated that Pinecliff neighborhood and the new area look nice. She noted that the town- homes will be right next to the park, which serves over 200 homes with limited equipment. She expressed concern about traffic on Ideal Avenue, which kids have to cross to get to the park. Rick Lentz, 6049 Idsen Avenue South, moved into his home 10 days ago. He stated that when they were looking for a house, they met with Lennar representatives who sold him a product with a map showing what the development is going to be. He is against the proposed plan. James McKenna, 8039 63rd Street South, read from his letter that he sent to the City, which was part of the Planning Commission packet, expressing his opposition to the revised plat. No one else spoke. Khambata closed the public hearing. Khambata stated that City staff will respond to questions raised during the public hearing. Planning Commission Minutes May 29, 2019 Page 5 of 10 Zopfi asked the applicant to address some of the concerns raised by the residents, specifically regarding the marketing being done for the development. Tabone responded the marketing materials are based on the approved plan. He explained that when they submitted their plan- ning application, they conformed with the City’s typical application process, including meeting deadlines for submittal, which in this case was April 24, in order to be on the May Planning Commission agenda and the June Council meeting agenda. He understands the concerns raised by the neighbors but there is language in the homeowner association documents that allows them to change products, builders, configurations, landscaping, etc., which is provided to every customer at the time of sale. He noted that Cottage Grove is not the only community where they have changed product, lot configurations, and landscaping. He explained that they are facing an ever-changing marketplace. In the other city where they are building quads, sales have also been slow; however, that development also had townhomes approved at the same, noting that the townhomes are outselling the quads. Zopfi what percentage of the de- velopment needs to be sold before the homeowners are in charge of the HOA. Tabone re- sponded 75 to 80 percent of the homes before the HOA is turned over. Zopfi asked if the declarations currently restrict the percentage of homes in the development that can be rented at any given time. Tabone responded no, however, there is language about rentals stating that the owner is responsible for following all local ordinances and HOA policies, so if anything happens the owner gets fined. He responded to the concerns about additional cars, traffic, and parking that generally HOAs and the residents in them do a good job policing those issues. Zopfi asked how often meetings are being held. Tabone responded that he needs to check on that. Zopfi asked based on the small difference in price between the quads and the town- homes, why there is a need to add 12 more units. Tabone responded that the townhomes have an extra bedroom and a few hundred more square feet. What is being communicated to Lennar is that while the quads are selling, they are not as desirable as a three-bedroom, two- bath townhome. Khambata noted that he read the Calarosa master association rules, regulations, and bylaws and the townhome version of those documents. The pet restrictions, parking restrictions, ar- chitectural guidelines, and everything else remains the same. He noted that the pet restrictions are more stringent than the City Code. He reported that the 2017 U.S. Census data for Cottage Grove recorded 2.98 occupants per household. He then noted that adding 12 more units would be a 1.4 percent increase in relation to just those 88 units increasing to 100 units, so when you quantify that to the entire Calarosa development, it would be about a half percent increase in density. He asked how much of an increase in height there will be versus a single-family two-story. Tabone responded that he believes the two-story townhomes will be 24 feet in height, which is comparable to a two-story single-family house. Khambata asked about the height of the quad homes. Tabone stated 12 to 15 feet, but he would need to confirm that. He noted that the landscaping configuration, specifically for the villa home sites to the north of the proposed townhomes, is virtually the same. He noted that currently the villas would see the side entries of the quad units and with the change to townhomes, they would still see the side entries, but the buildings would be narrower. He also noted that there would be more open space with the townhomes as they have a smaller footprint. Mills asked when Lennar expects the HOA to be turned over to the homeowners. Tabone stated that at 80 percent buildout, but he has no timeline as it’s based on purchase and con- struction. Mills asked if it is 80 percent of all four phases or 80 percent of each phase. Tabone stated 80 percent of four phases, noting that there are three associations – the master, the villa, and the quad. The master encompasses the entire development and addresses parking, Planning Commission Minutes May 29, 2019 Page 6 of 10 pet restrictions, open space, monumentation, and landscaped areas. The two sub-associa- tions regulate snow removal, landscaping, and exterior maintenance of the villas and the quads. The intention would be put the townhome units into the quad HOA. Khambata asked how the cost structure changes when you increase the number of units that the HOA is going to be managing. Tabone stated that ideally it would go down, but it depends on the HOA and the amenities of what is in the community. Frazier stated that this will be a hard decision because there are so many people who came to the meeting to be involved in city government. He stated that a lot of the comments he heard included size, parking, and medium density, which are zoning ordinances set by the city, and Lennar must comply with those. The people testified sound hurt, concerned, and betrayed. However, the Planning Commission’s duty is to make decisions based on law and those deci- sions cannot be arbitrary and capricious. What the courts tell us is that if an application follows the city ordinances of the city and zoning guidelines, it should be approved. Based on what he has seen, this application does. He is sorry that this may not have been what Lennar told you was going to happen, and you may feel like they pulled the rug out from under you. The Plan- ning Commission doesn’t set policy; we have to make sure that the application follows the ordinances of the City. This application meets density, parking, and other requirements. For these reasons, he feels it is his duty to vote for this application. Frazier hopes that Tabone takes the testimony he heard tonight back to Lennar to let them know that Lennar customers are not happy. Mills stated that her view of her role on the Commission is to hear concerns and apply deci- sions fairly. She received a packet when she started on the Planning Commission that had language about making decisions protecting the health and safety of our community. She heard a lot of concerns about traffic, playground, and bus routes and she more information on how to evaluate those safety concerns. She believes the Commission should make this deci- sion so there aren’t undue burdens on our citizens. She also stated that the 2040 comprehen- sive plan, which the Planning Commission is supposed, covers life cycle housing, from young professional first-time home buyers through retirement housing. Speaking as a young profes- sional, she can’t afford a $290,000 townhouse without someone living with her to help with the payments. She asked when looking at density, does the Commission take into account that many young professionals have student debt and lower starting salaries and need rent out a bedroom. She is having a hard time with the staff recommendation for approval as she has a lot more questions after hearing from the residents. Costello explained that the Planning Commission can choose to vote whichever way they feel is necessary, and that recommendation goes to the City Council on June 19, where they will make that final decision. Responses to issues raised, including traffic and safety, will be pro- vided to the Council. The City Council is the final decision maker; the Planning Commission is the recommending body. She then explained the process for applications for the Planning Commission, which is based on Minnesota statutes. The statute requires notification of all property owners within 350 feet; however, the City of Cottage Grove mandates 500 feet for notification of neighboring property owners. Regarding density, people moving into a commu- nity are not asked if they are a young professional or if they have kids, so density is based on something more general. Planning Commission Minutes May 29, 2019 Page 7 of 10 Mills asked if the Commission can look at changing the ordinances about the garages and other issues that were brought up. Costello stated that there is always room for improvements and that is a process staff wants to look at for changes. Wright stated that the Commissioners are not coming to the meeting with their vote deter- mined. He explained that if the townhomes go through, it will be within the City’s regulations. What the Commission does not always get is perspective and a lot of times you don’t under- stand the impact development occurs, especially when you were sold something different than what you thought. Khambata stated that the public comment period has closed, and additional comments can be raised at the City Council meeting on June 19. He stated that he read a lot of information on the HOA and relying on his expertise in the real estate industry, he does not agree with what Lennar is doing. However, the documents indicated that there could be changes to the devel- opment. Although he agrees with the homeowners regarding this application, the Commis- sion’s mandate is not to take sides based on our emotions, it is to look at this property with this application. In this case they are following the rules. Although emotionally he might be inclined to vote no on this application, the reality is that is not his purview. His purview is to listen to the facts and make sure they align with current ordinances and zoning regulations. When the association gets turned over to the residents, they can change and tighten the reg- ulations for the development. Rasmussen stated that the residents provided some good input. He noted that Lennar does have the flexibility to make changes. He believes there is a need for different housing types in the city, and he prefers to see a mix of housing types in neighborhoods. He understands the concern of going from fourplexes to six-unit townhomes as the buyer is likely to change. He does not believe that there will be a huge visual change between the two types of structures. He thinks that it fits and flows with the overall neighborhood. Frazier made a motion to approve the preliminary plat subject to the conditions in the staff report. Zopfi seconded. Motion passed on a 4-to-2 vote (Mills, Wright). 6.3 Glengrove Industrial Park 8th Addition – Case PP2019-021 The City of Cottage Grove has applied for a preliminary plat for Glengrove Industrial Park 8th Addition, which will create one industrial lot located north of 100th Street and west of 9900 Jamaica Avenue South. Wolf summarized the staff report and recommended approval subject to the conditions stipu- lated in the staff report. Khambata asked if this is the continuation of the previously approved plat. Wolf responded initially the 9.21 acres purchased by Renewal was meant for a parking lot for trailer storage. As they continue to see growth and expansion, they need more space for warehouse, trailer storage, office space, and light manufacturing. They looked at options throughout the nation but liked what Cottage Grove had to offer, so they decided to expand here. Opus is purchasing the property to develop a building that will fit Renewal by Andersen’s needs. Planning Commission Minutes May 29, 2019 Page 8 of 10 Rasmussen asked if the retention pond that is planned for Outlot B will be for the total devel- opment, including the part that is not being built on right away. Wolf explained that Outlot B will serve both Lot 1, Block 1, which will be developed by Opus, and Outlot A, which could be developed in the future, to allow for more developable area, which the City is working with Opus proactively Opus to develop that retention, which creates greater marketability of the site. Khambata opened the public hearing. No one spoke. Khambata closed the public hearing. Frazier made a motion to approve the preliminary plat subject to the conditions in the staff report. Mills seconded. Motion passed unanimously (6-to-0 vote). 6.4 Renewal by Andersen – Cases SP2019-023 & V2019-024 Opus Design Build, LLC has applied for a site plan review of a new 350,000 square foot warehouse, manufacturing facility, and office facility that will be located north of 100th Street and west of Renewal by Andersen, 9900 Jamaica Avenue South. Opus Design Build, LLC also applied for a variance to allow a link to connect the new facility to the adjacent existing Renewal by Andersen facility with a zero lot line setback, a variance for reduced required landscaping, and a variance allowing loading docks to face 100th Street. Wolf summarized the staff report and recommended approval subject to the conditions stipu- lated in the staff report. Eliza Chlebech, representing Renewal by Andersen, 9900 Jamaica Avenue South, stated that they are excited about the future growth of their business in Cottage Grove that will bring 125 new jobs to the area where they have their flagship manufacturing facility. Phil Cattanach, Senior Director Real Estate Development, Opus Group, 10350 Bren Road West, Minnetonka, explained that they are supporting Renewal by Andersen in their efforts to grow their business. He stated that staff has been outstanding to work with. He noted that he would answer any questions. Khambata asked what the reason is for the variance to the number of deciduous and conifer- ous trees. Cattanach responded that they want adequate landscaping to provide screening and greenery that would be established to have long-term growth. He noted that there is room to plant another 100 trees on the site but that would hinder their success due to inadequate spacing for growth. He stated that they are trying to apply a pragmatic approach that will be successful in consultation with their landscape architect. Khambata asked if there is still a plan to place a berm between the main collector and the parking lot to help raise the shrubbery up to screen the loading docks from the main road. Cattanach responded that is the intent and it should be shown in the plan. Zopfi asked if the transitway would be an open street. Cattanach responded that it is an en- closed structure that will provide connectivity between the existing Renewal by Andersen Planning Commission Minutes May 29, 2019 Page 9 of 10 facility into the new proposed facility to allow for the movement of manufactured goods into the new facility for the secondary stage of process and shipment. Rasmussen asked if the transitway crosses a private street and if there is a bridge or skyway across that road. Cattanach explained that it is an at-grade connection and won’t block any traffic. Rasumussen noted that it looked on the plans as if it crossed a private road. Costello explained that there was previously an access to go behind the building to get to the other parking lot but that will be removed and realigned to accommodate the transitway. Khambata opened the public hearing. No one spoke. Khambata closed the public hearing. Rasmussen made a motion to approve the site plan subject to the conditions in the staff report. Wright seconded. Motion passed unanimously (6-to-0 vote). Mills made a motion to approve the variance to landscaping requirements, 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 variance to side yard setback requirement for the proposed transitway based on the findings of fact and subject to the conditions in the staff report. Zopfi seconded. Motion passed unanimously (6-to-0 vote). Zopfi made a motion to approve the variance to allow loading docks to face a public street based on the findings of fact and subject to the conditions in the staff report. Wright seconded. Motion passed unanimously (6-to-0 vote). Approval of Planning Commission Minutes of April 22, 2019 Frazier made a motion to approve the minutes of the April 22, 2019, Planning Commis- sion meeting. Wright seconded. Motion passed unanimously (6-to-0 vote). Reports 8.1 Recap of May 2019 City Council Meetings Costello provided a summary of actions taken at the City Council meetings on May 1 and May 15, 2019. Dennis announced that Commissioner Schuler submitted her resignation from the Planning Commission, and he thanked her for her service during her tenure. He provided an update on the International Council for Shopping Centers convention that City representatives attended in Las Vegas to promote Cottage Grove to potential businesses. He stated that they met with approximately 50 to 60 different entities, and one of the things they were hearing from a lot of the different companies was that Cottage Grove is on their radar. Planning Commission Minutes May 29, 2019 Page 10 of 10 8.2 Response to Planning Commission Inquiries None 8.3 Planning Commission Requests Mills thanked staff for all their hard work putting together the staff reports. Adjournment Mills made a motion to adjourn the meeting. Zopfi seconded. Motion passed unani- mously (6-to-0 vote). The meeting was adjourned at 9:43 p.m.