Loading...
HomeMy WebLinkAbout2020-01-27 PACKET 06.3. STAFF REPORT CASE: CUP2020-004 ITEM: 6.3 PUBLIC MEETING DATE: 1/27/20 TENTATIVE COUNCIL REVIEW DATE: 2/19/20 APPLICATION APPLICANT: APPRO Development, on behalf of Leafline Labs REQUEST: An amendment to their existing conditional use permit to allow construction of a 133,726 square foot addition the existing 43,700 square foot facility, which would consist of a greenhouse and a link to the existing facility, as well as a new access road encircling the greenhouse. SITE DATA LOCATION: 8235 97th Street South ZONING: I-2, General Industry GUIDED LAND USE: Industrial LAND USE OF ADJACENT PROPERTIES: CURRENT GUIDED NORTH: Industrial Industrial EAST: Industrial Industrial SOUTH: Industrial Industrial WEST: Industrial Industrial SIZE: Addition = 133,276 square feet DENSITY: N/A RECOMMENDATION Approval, subject to the conditions stipulated in this staff report. COTTAGE GROVE PLANNING DIVISION Planning Staff Contact: Emily Schmitz, Senior Planner; 651-458-2847; eschmitz@cottagegrovemn.gov Application Accepted: 12/30/19 60-Day Review Deadline: 2/28/20 City of Cottage Grove Planning Division  12800 Ravine Parkway South  Cottage Grove, MN 55016 Planning Staff Report Leafline Labs Planning Case No. CUP2020-004 January 27, 2020 Proposal Leafline Labs, LLC, has submitted an application requesting an amendment to its current Site Plan and Conditional Use Permit (Resolution 2014-088) to allow for the construction of an approx- imate 134,000 square foot addition to the existing 43,700 square foot facility at 8235 97th Street South. The proposed addition is comprised of a greenhouse and a building link to the existing facility, as well as a new access road encircling the greenhouse. Location Map Review Schedule Application Received: January 2, 2020 Acceptance of Completed Application: January 2, 2020 Planning Commission Date: January 27, 2020 Tentative City Council Date: February 19, 2020 60-Day Review Deadline: March 2, 2020 Background The existing Leafline Labs facility was approved and constructed on the site in 2014, following Minnesota’s legalization of the production and use of cannabis for some medical purposes in May 2014. Leafline Labs was selected as a manufacturer by the Minnesota Department of Health (MDH) as one of two licensed medical cannabis producers in Minnesota. The current facility houses growing and processing functions for the company’s medical cannabis products. Planning Staff Report – Case No. CUP2020-004 Leafline Labs, LLC – CUP Amendment January 27, 2020 Page 2 of 10 The approved site plan in 2014 planned space on site for a future expansion. Leafline Labs is now preparing to increase its production capacities in response to recent expansions to the State’s medical cannabis program. The proposed greenhouse will provide additional growing space; all processing functions will continue to take place within the existing facility. Planning Considerations Land Use The parcel at 8235 97th Street South is located within the Cottage Grove Business Park and is zoned I-2, General Industry. Pharmaceutical manufacturing is a conditionally permitted use within this zoning district. Existing Conditions During Phase I of development of this site, the entire parcel was graded anticipating future growth. A tree inventory was conducted, and any trees removed were mitigated. A gravel pad was in- stalled in the area of the future Phase II expansion. The proposed expansion, therefore, does not require mass site grading or alteration to the existing landscape. Building Materials The City’s Zoning Code Title 11-6-13C, Nonresidential Structures, requires all new structures to use a minimum of 65 percent Class I materials. These materials include glass and window panels, brick, and natural stone. This requirement results in high quality development and the use of materials that will resist deterioration. The applicant has indicated that the proposed greenhouse will be a prefabricated structure (Venlo Greenhouse, manufactured by DeCloet) with glass walls and roof panels. The proposed structure material would meet the Class 1 materials standard within the zoning code. DeCloet (Venlo) Greenhouse Image Planning Staff Report – Case No. CUP2020-004 Leafline Labs, LLC – CUP Amendment January 27, 2020 Page 3 of 10 The building link between the two structures will also be required to be constructed with precast wall panels that match the existing building’s colored rock-face concrete masonry block material. Proposed materials will be required to be reviewed and approved by the Community Development Department prior to the issuance of a building permit. Proposed Building Materials Parking Ordinance requirements for parking on the site are based on the mix of uses contained in the existing and proposed buildings. The existing building houses office, manufacturing, and ware- housing activities. Parking requirements per the City’s Zoning Code Title 11-3-9 are 1 space per 250 square feet of office space, 1 space per 400 square feet of manufacturing space, and 4 spaces plus 1 space per 2,000 square feet of warehousing. The existing building’s mix of uses entails a requirement of approximately 111 spaces. The applicant was permitted in 2014 to provide only 102 spaces with Phase I of the development, while providing proof of parking for additional spaces that would allow the project to meet City requirements. The applicant additionally provided proof of parking for an additional 102 spaces to meet the facility’s peak demand. The proposed addition is approximately 133,640 square feet, of which 4,400 square feet will con- tain staff stations and restrooms and 129,200 square feet will be greenhouse operations. Parking requirements for the non-greenhouse portion of the addition, calculated at the manufacturing rate of 1 space per 400 square feet, contribute 11 spaces to the site’s required total. Given that the primary activity in the proposed greenhouse is growing, it is determined that the appropriate rate of parking for the greenhouse is equivalent to the ordinance requirement for warehousing, rather than that for manufacturing. The greenhouse thus contributes 65 additional required spaces, bringing the total required parking on the site for Phases I and II to 187 spaces. The following figure depicts the approximate distribution of uses within the site used to calculate parking requirements. Final square footage has been adjusted from that depicted in this floor plan to better reflect project dimensions as built and as currently proposed. Office space parking rates were applied to the area shown in purple, manufacturing rates to the area shown in green, and warehousing rates to the areas shown in light blue and orange. Planning Staff Report – Case No. CUP2020-004 Leafline Labs, LLC – CUP Amendment January 27, 2020 Page 4 of 10 Approximate Area of Operations (existing building), Phases I and II The current proposal does not include installation of additional parking spaces but does include proof of parking for an additional 195 spaces, bringing the site’s total possible parking capacity to 297 spaces, exceeding the City’s required 187 spaces for Phase I and II combined. The applicant has maintained space on the site to accommodate future parking spaces up to and exceeding City requirements and has provided evidence that its current parking provisions meet peak de- mand. The applicant’s proposed parking scenario is determined to satisfy the intent of the City’s parking ordinance to ensure adequate off-street parking for new development. Utilities The subject property is located within the Metropolitan Urban Service Area (MUSA). Prior to the release of the building permit, public drainage and utility easements shall be dedicated over all surface water storage, cross site conveyance routes, and underground water utility infrastructure. Development Fees Development fees for the site were paid at the time of initial development. The proposed expan- sion does not trigger additional development fees. Traffic/Access The facility currently employs 31 staff members on a single shift. Leafline Labs estimates that the expansion will require the addition of 45 employees in a second shift, and eventually an additional 32 employees. Thus, peak employee traffic to and from the site is estimated to reach a maximum of approximately 108 trips per day, with no more than approximately 75 employees present at any one time. In addition to employee traffic, the applicant anticipates 2 company transit vehicle trips per day and 3 to 6 delivery service trips serving the site daily. Planning Staff Report – Case No. CUP2020-004 Leafline Labs, LLC – CUP Amendment January 27, 2020 Page 5 of 10 The site’s two current access roads from 97th Street will be preserved. The proposed addition includes the extension of the site’s internal access road around the perimeter of the new structure for fire safety purposes. This access road is required to be paved. Proposed Access Road Surface Water Management/Grading Surface water management infrastructure installed at the time of the 2014 development of the site was sized to accommodate maximum possible future site development, including the full buildout of the site’s parking capacity. The proposed expansion does not fully exhaust this maximum ca- pacity, and therefore does not cause any additional stormwater management infrastructure to be required beyond the existing infrastructure. Existing Storm Basin Locations Planning Staff Report – Case No. CUP2020-004 Leafline Labs, LLC – CUP Amendment January 27, 2020 Page 6 of 10 Tree Preservation/Landscaping A tree inventory was completed at the time of initial development (approved landscaping plan dated 4/10/2015), identifying 409 qualifying trees on the site, of which 201 were removed and 208 preserved. Under the tree preservation ordinance at that time (Title 11-6-6), this level of removal was determined to exceed the permitted removal threshold. The excess removed trees were required to be mitigated with 82 replacement trees. Additionally, the landscaping ordinance at the time (Title 11-6-5), which has since been amended, required that the site, with an area of 914,394 square feet, excluding stormwater basins, be planted with 127 overstory deciduous trees and 119 coniferous trees. Under the terms of the landscaping ordinance at that time, preserved trees could be counted toward landscaping require- ments at a rate of 1 preserved tree to 2 required trees. The 208 preserved trees were determined to account for up to 416 required new trees. The applicant has fulfilled the City’s landscaping requirements with the large number of trees remaining on the site, along with the installation of new shrubs. Nonetheless, the requirement of 82 new trees in mitigation of the excessive tree removal re- mained. At the time of the present application for Phase II of the development, the number of new tree plantings proposed between both phases of development totals 108. The proposed new trees, in addition to the 30 proposed additional shrubs, are determined to satisfy the tree preser- vation requirements of the ordinance when the original site plan was approved in 2014. Lighting City ordinance limits the amount of light that can be emitted from an industrial or commercial property to no more than 1.0 foot-candle measured at the property boundary. The applicant has submitted a photometric study that calculates the foot-candles at 10 feet from the greenhouse structure. The average foot-candle within the 10-foot offset from the exterior walls and ceiling peak is an average between 6.1 and 3.0 foot-candles. The applicant will be required to submit a photometric plan indicating the foot-candles at the property line to ensure light emitting from the property meets the zoning code standard of no more than 1.0 foot-candle at the property line. The applicant has indicated the greenhouse will not be continuously lit and will not exceed the maximum luminosity at the property lines. Lighting within the greenhouse is proposed to be limited to between the hours of 4:30 a.m. and 10:00 p.m. as the plant growth cycle requires a strict 12 hours on and 12 hours off to maximize plant production. Odor Mitigation As a part of the approval in 2014, the applicant indicated they would provide appropriate odor mitigation control systems as well as an odor mitigation plan. The systems they installed included a carbon filter within their exhaust system to avoid noxious odors or creating dangers to people within the vicinity. The odor mitigation plan requires monitoring of odor in three locations: within the exhaust stack, just outside the building, and at the property line. The mitigation plan also allows the City the ability to take odor measurements at any time within the facility or property. In the City’s letter dated February 3, 2016, the applicant is required to notify the City if a nasal ranger reading is above 2 dilution-to-threshold (D/T, odor concentration in the air) or “a just noticeable odor” is detected at either location 2 or 3 on the below monitoring location map. If a nasal ranger reading is at or above 4 D/T, the property owner is required to replace the carbon filters as a part of the carbon filtration system. Planning Staff Report – Case No. CUP2020-004 Leafline Labs, LLC – CUP Amendment January 27, 2020 Page 7 of 10 Monitoring Location Map Operations within the greenhouse structure will only include growing of the plants. A part of this process requires the greenhouse to be vented in order to let in cool or dry air or to release humid air. This is a common practice (“venting”) in the cultivation of marijuana plants within greenhouse structures allowing for the creation of environmental control to produce the best growing condi- tions. This process includes the sporadic release of air through roof and side vents with fans. The applicant has indicated the odor within the greenhouse is minimal compared to the odor created during the processing of the plant, which will take place only within the existing building. The applicant is proposing installation of a high-pressure fogging system, which is used in greenhouse settings to naturally manage odor. Staff is recommending a condition of approval that an odor mitigation system be provided within the greenhouse and at any locations “venting” is taking place within the facility. Any complaint received regarding odor from the facility will require immediate response from the property owner to mitigate the nuisance. To date, City staff has not received any odor complaints related to the facility and the operations. Staff will continue to monitor the odor data provided bi- annually from the applicant. Public Hearing Notices The public hearing notice was published in The Bulletin and mailed to the 7 property owners within 500 feet of the property on January 15, 2020. Planning Staff Report – Case No. CUP2020-004 Leafline Labs, LLC – CUP Amendment January 27, 2020 Page 8 of 10 City Department Review The City’s Technical Review Committee reviewed the application, provided input, and made a favorable recommendation that the proposal be approved as requested. Recommendation That the Planning Commission recommend that the City Council rescind Resolution 2014-088 and approve an amended Conditional Use Permit and Site Plan for the addition of an approximate 129,200 square foot greenhouse and an approximate 4,400 square foot linking structure adjacent to the existing Leafline Labs pharmaceutical manufacturing facility at 8235 97th Street South, subject to the following conditions: 1. A dispensary facility is not proposed with this pharmaceutical manufacturing and processing or manufacturing facility. 2. The pharmaceutical manufacturer must be registered by the commissioner of Health as required in the 2014 Minnesota Session Laws – Chapter 311 – S. F. No. 2470. 3. A pharmaceutical manufacturing and processing facility shall be ventilated so that all odors cannot be detected by a person with a normal sense of smell at the exterior of the phar- maceutical manufacturing and processing facility or at any adjoining use or property. Grow- ing, manufacturing, or processing medical cannabis must comply with all applicable laws and shall not produce noxious or dangerous gases or odors or otherwise create a danger to any person or entity in or near the manufacturer’s facilities. The applicant shall provide to the City verification from a qualified industrial hygienist that the pharmaceutical manu- facturing and processing facility provides appropriate odor control systems so as not to produce any noxious or dangerous gases or odors or create any dangers to any person or entity in or near the pharmaceutical manufacturing and processing facility. An odor mainte- nance plan must be submitted to the City and approved by the City’s consultant. 4. Monitoring shall be conducted at the monitoring locations no less than bi-weekly and the data provided to the City twice annually. 5. Outdoor storage of containers, pallets, waste/recycle containers, etc. are prohibited. 6. All signage must comply with City Sign Ordinance regulations, and a building permit must be obtained prior to the installation of any signs. 7. All applicable permits (building, electrical, grading, mechanical, and right-of-way) and a commercial plan review packet must be completed, submitted, and approved by the City prior to the commencement of any construction activities. Detailed construction plans must be reviewed and approved by the Building Official and Fire Marshal. 8. Final drainage plans must be submitted to the South Washington Watershed District for review. A final utility plan must be submitted and reviewed prior to the issuance of a building permit. All conditions of the City’s review memo dated January 23, 2020 must be addressed prior to approval. Planning Staff Report – Case No. CUP2020-004 Leafline Labs, LLC – CUP Amendment January 27, 2020 Page 9 of 10 9. Irrigation shall be provided for all sodded and mulched landscaped areas. Irrigation must also be provided to each landscape island interior to the parking lot. The irrigation system shall consist of an underground sprinkling system that is designed by a professional irriga- tion installer to meet the water requirements of the site’s specific vegetation. The system shall be detailed on the landscape plan. A maintenance plan must be submitted to the City for approval for all other yard areas featuring prairie grasses and wildflowers. The grass area for that section of land abutting Renewal by Andersen’s private access road must be maintained. 10. All site lighting must meet City Code requirements. All light fixtures must be downward directed with cut-offs and be architecturally designed to match the overall design for the building. The specifications of all light fixtures must be provided by the City with the appli- cation for a building permit. A photometric plan must be submitted to the City prior to the issuance of a building permit indicating light measure at the property line. 11. Lighting within the greenhouse is permitted between the hours of 4:30 a.m. and 10:00 p.m. Lighting at the site property lines shall not exceed 1.0 foot-candles at any time. 12. The grading and erosion control plan for the site must comply with NPDES II Permit re- quirements. Erosion control devices must be installed prior to commencement of any grading activity. Erosion control must be performed in accordance with the recommended practices of the “Minnesota Construction Site Erosion and Sediment Control Planning Handbook” and the conditions stipulated in Title 10-5-8, Erosion Control During Construc- tion, of the City’s Subdivision Ordinance. 13. The applicant must provide the City with an as-built survey of all private utilities prior to issuance of a certificate of occupancy. 14. The property owner must allow City personnel to enter upon the property to maintain, re- pair, and inspect all public utility systems that exist on the property. Flushing the fire hydrant internal to the site is the City’s responsibility. 15. All mechanical and odor suppression equipment and trash enclosures must be screened as required in City Code Title 11, Chapter 6, Section 3, Solid Waste Storage and Title 11, Chapter 6, Section 4, Screening Requirements. 16. All landscaping improvements must comply with the City’s landscaping and tree preserva- tion regulations as required in City Code Title 11, Chapter 6, Section 5, Landscaping Re- quirements, and City Code Title 11, Chapter 6, Section 19, Tree Preservation. Installation of landscaping shall occur in a timely fashion and be consistent with an approved plan. A letter of credit in the amount of 150 percent of the landscape estimate shall be submitted to the City as required by City Code Title 11, Chapter 6, Section 5(I) prior to the issuance of a building permit. The financial guarantee shall be in effect for one year from the date of installation to ensure the installation, survival, and replacement of the landscaping improve- ments. The property owner must continue maintenance of all the landscaping im- provements as shown on the approved landscaping plan dated December 27, 2019. Planning Staff Report – Case No. CUP2020-004 Leafline Labs, LLC – CUP Amendment January 27, 2020 Page 10 of 10 17. Final architectural plans, lighting details, and exterior construction materials and colors must be reviewed and approved by the Community Development Department prior to the issuance of a building permit. 18. Exterior building materials for the proposed linking structure must be similar to the principal structure’s exterior color, design, texture, and exterior building materials. The proposed greenhouse must comply with the architectural performance standards stipulated in City Code Title 11, Chapter 6, Section 13. Materials must be reviewed and approved by the Community Development Department prior to the issuance of a building permit. 19. All conditions and requirements of the Contract for Private Development By and Between Cottage Grove Economic Development Authority and Leafline Labs, LLC dated September 9, 2014, must be complied with. Prepared by: Emily Schmitz Senior Planner Attachments: Site Plan Dated January 2, 2020 Landscape Plan Dated December 27, 2019 Utility Plan Comment Letter Dated January 23, 2020 Odor Mitigation Plan Dated July 17, 2019 and Greenhouse Supplement 20303131!4;45;19!QN Op/EftdsjqujpoEbuf 451(!.!1# 51(!TFUCBDL QM 230410312:!9;41;33!BN Op/EftdsjqujpoEbuf 451(!.!1# 51(!TFUCBDL QM To: Ben Peters Appro Development From: Amanda Meyer, PE Assistant City Engineer CC: Ryan Burfeind, PE City Engineer Date: January 23, 2020 Subject: Leafline Labs Utility Plan Review This memo summarizes the review comments of the Utility Plan submitted by Appro Development on January 17, 2020. 1. Provide clear delineation of existing vs proposed utilities. 2. Show all existing utilities on the property and beyond the property line. 3. Provide rim and invert elevations for sanitary sewer structures. 4. Provide size, material, slope, and length of sanitary sewer. 5. Provide watermain valve locations. 6. Provide watermain material type. 7. Provide size and material of proposed water service. 8. Provide hydrant lead information for proposed hydrant. 9. Include applicable City Details for the proposed utility work. 10. Show all drainage and utility easements. 11. Provide proposed grading plan. 12. Provide details regarding the proposed parking lot/driveway work (dimensions, typical section, etc). 20403131!3;49;16!QN Op/EftdsjqujpoEbuf