HomeMy WebLinkAbout4a - Highpointe Crossing OP-LDR FLU Amendment
STAFF REPORT
DATE: July 28, 2025
Public Hearing
Regular/Motion
TO: Lake Elmo Planning Commission
FROM: Nathan Fuerst, AICP, Senior Consulting Planner
AGENDA ITEM: Highpointe Crossing/OP-LDR Comprehensive Plan Amendment
REVIEWED BY: Jason Stopa, Community Development Director
Sophia Jensen, Senior Planner
CORE STRATEGIES:
☒ Vibrant, inclusive, connected community ☐ Efficient, reliable, innovative services
☐ Responsive, transparent, adaptive governance ☐ Balanced Finances now and future
☒ Managed Growth ☒ Resilient Infrastructure
INTRODUCTION:
The City’s Planning Commission reviewed and recommended approval of the Highpointe
Crossing Preliminary Plat and Open Space Planned Unit Development (OP PUD) in July 2024.
The City Council approved the Highpointe Crossing Preliminary Plat and OP PUD in September
of 2024. Since that time, Rachel Development (the “Developer”) found that the community
septic system proposed for the Highpointe Crossing project cannot meet criteria established for
such systems by the State of Minnesota. The primary issue is the soils that are present on site.
After reevaluating the available options to continue with this development, the Developer
discussed the possibility of bringing public sewer forward to serve the property, and the Council
has found that option to be a preferred alternative to large lots with individual septic systems.
In order to serve this property with public sewer, the City must amend its comprehensive plan to
add this property to the MUSA (Metropolitan Urban Service Area). In consideration of how to
best fit this project into the City’s Future Land Use guidance, and at the City Council’s direction,
staff have recommended that a new Future Land Use category be created to support this type of
development. The Developer has produced an amendment request accordingly.
The proposed amendments have implications beyond just this one project. If approved, the new
future land use category may be used elsewhere in the City were found appropriate. If the
Comprehensive Plan Amendments requested by the Developer are approved, the Highpointe
Crossing development could be constructed in a manner largely consistent with how it was
originally proposed.
ISSUE BEFORE PLANNING COMMISSION:
Should the City of Lake Elmo amend its 2040 Comprehensive Plan to add the Highpointe Crossing
property into the MUSA and create a new Future Land Use Category called OP-LDR?
GENERAL INFORMATION:
Applicant: Rachel Development, 4180 Napier Court, NE, St. Michael, MN 55376
Property Owner: Allan Eberhard, Caroline M. Eberhard Trust, 1320 Ryan Ave. W. Roseville, MN
55113
Location: 2298 Inwood Avenue N, Lake Elmo (PID#: 2102921320001)
Request: Comprehensive Plan Amendment
Deadline: Application Complete – 6/27/2025
120 Day Deadline – 10/25/25
REVIEW AND ANALYSIS:
To connect the Highpointe Crossing development to the sanitary sewer system, several amendments will
be required to the City’s Comprehensive plan. First, the City must consider how future land use guidance
will be amended for this new form of sewered development. Second, a MUSA Map amendment would be
required to sewer this property along with review of a physical connection to the regional sanitary sewer
system along Inwood Avenue to the south of this project area.
Purpose for new Future Land Use Category
The city is exploring new development design types to better meet the goals of future rural
development. While the city has open space development (septic) available in rural areas, the
challenges with soil types and septic systems failing have led to projects either being abandoned
during the development approval process or seeking to be converted to sewer years after the
development has been built. Some developers with poor soils will convert their planned
community septic project to individual septic because the likelihood of failure is lower. This results
in larger lot (1-2 acre) open space developments. The city believes that many of these issues could
be solved by creating an Open Space Low Density Residential (Sewered) development.
This new future land use category would blend existing Open Space Planned Unit Developments
(septic) with Low Density Residential (sewered). The lot sizes and densities would be similar to
the existing LDR with open space requirements the same as an existing OP-PUD. The main
difference is that the open space would be a network of publicly owned parkways with ped/bike
trails, fields of prairie grass, and woodland preserves. This is consistent with the goal of retaining
aspects of Lake Elmo’s rural character and promoting a nature-based approach to development.
The main features of the proposed OP-LDR district are listed below.
• This category is only found within areas planned to be the City’s MUSA boundary.
• Density must be between 2-3 units per acre.
• Housing must be primarily single-family housing but may contain a small percentage rear-
loaded townhomes/twinhomes to meet density requirements. (Staff are looking to propose
a specific maximum percentage of 10% townhome units in a future zoning ordinance
amendment.)
• Open Space must be a minimum of 50% of the gross land area. Wetlands are allowed and
encouraged to be within open space areas. Areas within the OHWL of lakes are not allowed
to count towards open space areas.
• Open Space areas must be publicly accessible parkway amenities with ped/bike trails and
conservation areas with either native prairie or woodlands. Open space would be netted out
for density calculations and must be restricted in perpetuity from future development.
Amending the MUSA Boundary
As the proposed OP-LDR future land use category would be only permitted within MUSA areas,
any property that is proposed with this guidance must be planned for public sewer. Location within
the existing MUSA boundary means that sewer capacity has been planned for a certain property.
If properties outside of the MUSA are proposed for OP-LDR guidance, then a corresponding
application for expansion of the MUSA will be required. City staff generally seek to discourage
one-off requests to modify the public sewer system in favor of more comprehensive analysis and
planning.
Given the challenges described above, the Developer has proposed to expand the City’s MUSA
boundary (Map 3-7 in the City’s 2040 Comprehensive Plan) to allow for the Highpointe Crossing
project to be served by public sewer. The City’s staff and engineering team have coordinated to
discuss capacity in both the City’s system, locally, and at the City’s connection to the Metropolitan
Council’s regional sewer system. An engineering analysis is ongoing and will be expected to be
completed prior to a City Council review of the request.
Conformance with Metropolitan Council Regional Policy
City staff have met several times with Metropolitan Council (Met. Council) review staff to ensure
that the amendments will work within applicable regional policies. Impacts of this amendment on
the City’s conformance with the Met. Council’s policies are summarized generally, and then more
specifically to the Highpointe Crossing project.
Generally, the new OP-LDR future land use category will decrease density in sewered areas. For
the purpose of tracking citywide compliance with Met. Council policy, land in the MUSA is
assumed to develop at the lowest possible densities. Staff have proposed that, to reduce the impacts
of this new category, density be kept at a minimum of 2 units per acre in this new category.
Additionally, to allow for the open space areas to be netted out of a development’s net acreage,
Met Council policies require that the land areas be publicly owned and accessible.
If the proposed amendments were approved, the Highpointe Crossing project will reduce Lake
Elmo’s citywide net density from 3.15 to about 3.11 units per net acre. The Developer will need
to amend the development plan in order to increase the net density of the project from about 1.8 to
a minimum of 2.0 units per net acre. The Met Council requires that any new roadways and ponding
areas needed for the development count toward net acreage, even if the ponds are located within
the open space areas. This must be accounted for by the Developer in a future amendment to the
Highpointe Crossing Preliminary Plat.
Anticipated application of the OP-LDR District
As stated in this report, the new future land use category is intended to provide the City with
another option for areas that are more rural in nature to develop with public utilities. Given the
effect that this category will have on citywide density, it is anticipated that this new district will
be used strategically in locations where it can serve as a compliment to surrounding development,
and as a transition to areas of more dense sewered development.
Given the cost of sewer extensions, this category is not anticipated to be located in areas north of
Stillwater Boulevard where the public sewer system is further away. The Cost of sewer extensions
in Lake Elmo has historically been the responsibility of private developers.
Summary of Proposed Amendments to the 2040 Comprehensive Plan
• Amendment to Chapter 3, Land Use, to add definition of the new future land use category
and required main features of the OP-LDR.
• Amendment to Future Land Use map (Map 3-3) for the Highpointe Crossing property to
be changed from RSF to OP-LDR.
• Amendment to the MUSA boundary (Maps 3-2, 3-3, 3-4, and 3-7) for the Highpointe
Crossing property to be added to the City’s sewered areas within the current development
decade.
Next Steps after Adoption
Amending the City’s 2040 Comprehensive Plan is the first step in a longer process to modify land use
policy allowing for this new type of lower intensity sewered development. Below are next steps that the
City will need to take to support this requested amendment:
1. Complete a sewer capacity analysis in the southwest corner of the community to better
understand future alignment of a forcemain connection from Highpoint Crossing to the
City’s nearest connection.
2. City Council review and approval of the proposed request, with information from the sewer
system analysis.
3. Met Council approval of the comprehensive plan amendment.
4. Zoning Ordinance amendment to create a new zoning district and requirements
corresponding to the proposed OP-LDR future land use category and other standards as
identified.
5. Amendment to the Highpointe Crossing Preliminary Plat and OP-PUD
REVIEW COMMENTS:
This proposed comprehensive plan amendment request has been sent to adjacent or affected
jurisdictions as follows: City of Oakdale, City of Oak Park Heights, City of Stillwater, City of
Woodbury, Baytown Township, Grant Township, West Lakeland Township, VBWD, SWWD, and
Washington County.
At the time of writing this report, no adjacent or affected jurisdiction comments have been
received.
PUBLIC COMMENTS:
A notice regarding the public hearing on the Planning Commission’s July 28 agenda has been
posted in the City’s official paper and sent to residents surrounding the subject property.
At the time of writing this report, no public comments have been received.
FINDINGS:
Staff propose the following findings for approval.
1. That the applicant has submitted a request to the City of Lake Elmo to amend the
Comprehensive Plan in accordance with the procedures as established by the Lake Elmo
Planning Department and the Lake Elmo Planning Commission; and
2. That the Applicant has submitted a request for amendments to land use guidance to permit
addition of a new future land use category, proposed to be called Open Space Low Density
Residential (OP-LDR), which is be served by municipal water and sewer utilities.
3. That the request is to amend the Future Land Use Map to change the subject property from
Rural Single Family (RSF) to Open Space Low Density Residential (OP-LDR); and
4. That the request also includes revision to the MUSA boundary established on Maps 3-2, 3-3,
3-4, and 3-7; and
5. The new OP-LDR future land use category would further goals towards creating new
opportunities for land development that are consistent with the rural characteristics of the
community; and
6. That the proposed amendment is consistent with the overall goals and objectives of the Lake
Elmo Comprehensive Plan.
RECOMMENDED CONDITIONS FOR APPROVAL:
Staff recommend a condition that if the City approves the comprehensive plan amendment, that
the amendment is not in effect util approved by the Met Council.
OPTIONS:
The Planning Commission generally has the following options with respect to this request:
1. Recommend Approval
2. Recommend Approval with modifications or conditions to the amendment(s)
3. Recommend Denial
4. Table
RECOMMENDATION:
Comprehensive Plan Amendments require a 4/5 vote of the City Council to be approved.
Staff are generally supportive of the requested comprehensive plan amendments as they have
been discussed previously and are consistent with guidance from the City Council. The proposed
amendments appear to be compatible with both existing development patterns and goals
established by the comprehensive plan. A sewer study will provide the necessary information on
availability of sewer system capacity and alignment of a required sewer connection.
Staff recommend that the Planning Commission hold a public hearing for this item and consider
the following recommendation to the City Council for approval:
“Move to recommend the City Council approve the requests from Rachel Development, for
Comprehensive Plan amendments with the findings and conditions proposed by staff”
ATTACHMENTS:
• Applicant Narrative
• Highpointe Crossing Location Map
• Met Council Net Residential Density Calculation Guidelines
• Lake Elmo Future Land Use Map
• Lake Elmo 2040 Comprehensive Plan – Link Only
4180 Napier Ct NE Michael, MN 55376
Office: 763.424.1500
www.racheldevelopment.com
2298 Inwood Ave N – Comprehensive Plan Amendment Narrative
To: City of Lake Elmo
From: Rachel Development, Paul Robinson – Development Director
Date: 6/27/2025
A - Submittal Documents:
1. Narrative
2. Sketch Plans
B - Development Property:
• Owner
o Caroline M Eberhard Trust - Allan Eberhard is the Trustee.
• Applicant
o Rachel Development – Paul Robinson, Development Director
Eberhard Property
2298 Inwood Ave
2298 Inwood Ave N – Lake Elmo – Comprehensive Plan Amendment Request
June 27, 2025
Page 2
2
• Property
o Address – 2298 Inwood Ave N, Lake Elmo Mn 55042
o Current Zoning – Rural Residential (RR)
o Current Land Use Plan Guiding – Rural Single Family (RSF)
C - Introduction:
In August 2024 the City Council reviewed and approved a 65 lot OP-PUD plan for the Eberhardt
property(shown below). That plan was dependent on the State of Minnesota approving a community
septic system. As we explained in a follow up narrative and at the City Council Work Session on June 10,
2025, we were not able to get a community septic system approved by the state due to the soils on site
and more stringent testing required by the state for these types of systems.
Therefore, at the June 10, 2025, work session, we presented two ways we could continue without a
community septic system. One was to pursue a large lot rural development with individual septic
systems and another was to create a new land use that would allow City sanitary sewer service to OP-
PUD’s. The general direction from the City Council was to pursue the Comprehensive Plan Amendment,
creating a new land use that would allow for City sanitary sewer service to be provided to OP-PUD’s.
2298 Inwood Ave N – Lake Elmo – Comprehensive Plan Amendment Request
June 27, 2025
Page 3
3
D – Proposed Comprehensive Plan Land Use
Based on a staff recommendation the new land use would be called Open Space - Low Density
Residential (OP-LDR). Below is a DRAFT of the possible language for that district.
Open Space – Low Density Residential (OP-LDR) – This land use is intended to allow residential
developments to use the Open Space Planned Unit Development process to design and
develop neighborhoods that include 50% open space and develop the remaining property at
urban residential densities between 2.0 and 3.0 units per acre with City Sanitary Sewer. These
developments may or may not be adjacent to existing MUSA areas. The OP-PUD code will
require certain buffers from adjacent uses. In most cases the costs for providing sanitary sewer
to these areas will be the responsibility of the developer unless the City or surrounding
properties receive potential benefits as determined by the City.
We initially asked the Council for a density range between 1.5 units/acre to 2.5 units/acre. The OP-PUD
as approved would come in at 1.87 units/acre. City staff wanted a minimum of 2.0 units/acre. To get to
that density we need to either shrink the lots, change the product type, or use a combination of both.
Shrinking the lots constrains the backyard areas and could cause issues on lots with hardcover. We
already increased the hardcover per lot to 50% in the OP-PUD as approved.
Another option would be to replace the villas on the north side of the road with twinhomes. This would
increase the unit count by 7 units but also allows us to increase the overall open space and remove
three villa lots that were separated from the rest of the neighborhood.
Concept sketches for these two options are included on the following pages. We are okay with either
option. Option A is a partial twinhome plan and Option B is the reduced lot area plan. For Option A, the
partial twinhome plan, we number of units increases from 65 to 72 and this plan would likely need a
55% hardcover allowance for the twinhome lots. On Option B, the reduced lot plan, we think we would
need to increase the hardcover allowance for all the lots to around 55% to make sure we can still build
the proposed villas(same size home as planned for the approved PUD but now on smaller lots).
I think we probably prefer Option A, the partial twinhome plan. This plan allows the open space area to
be maximized by eliminating three villas units that block unobstructed views into the open. It also
allows us to include two product types which help provide a broader mix of housing options.
The twinhome plan takes up less area for the homes but would need a smaller lot size minimum of
around 6,500 sf for the twinhomes. The twinhomes as mentioned above may also need some additional
hardcover. Otherwise, the standards for the twinhomes are the same as the standards approved for the
65 lots Highpointe Crossing PUD.
2298 Inwood Ave N – Lake Elmo – Comprehensive Plan Amendment Request
June 27, 2025
Page 4
4
72 Lot OP-PUD Plan – Partial Twinhome Plan
2298 Inwood Ave N – Lake Elmo – Comprehensive Plan Amendment Request
June 27, 2025
Page 5
5
65 Lot OP-PUD Plan – Reduced Lot Area
2298 Inwood Ave N – Lake Elmo – Comprehensive Plan Amendment Request
June 27, 2025
Page 6
6
E- PUD Standards/Open Space/Density
While the specifics on the zoning and lot standards are not necessarily part of the Comprehensive Plan
amendment, we wanted you to know that they would be similar with some slight variation, yet to be
finalized, to the standards in the approved PUD.
Option A Option B
Approved
PUD
Partial
Twinhome
PUD
Reduced
Lot Size
PUD
Villa Lots 64 35 64
Twinhomes 36
Homestead Lot 1 1 1
Total 65 72 65
Lot Minimums Approved
PUD
Partial
Twinhome
PUD
Reduced
Lot Size
PUD
Villa Lots
Area 11,200 sf 9,000 sf 9,000 sf
Width(setback) 70’ 70' 70'
Depth 160’ 130' 130'
Twinhomes
Area NA 6,500 sf 6,500 sf
Width(setback) NA 40' 40'
Depth NA 130' 130'
Lot Set-backs* Approved
PUD
Partial
Twinhome
PUD
Reduced
Lot Size
PUD
Villa Lots
Front 30’ 30’ 30’
Side 10’ 10’ 10’
Side (Street) 30’ 30’ 30’
Rear 20’ 20’ 20’
Twinhomes
Front NA 30’ NA
Between Homes NA 20' NA
Side (Street) NA 30’ NA
Rear NA 20’ NA
* Except homestead lot which, due to existing structures, has 20’ setbacks –
side, front, rear.
2298 Inwood Ave N – Lake Elmo – Comprehensive Plan Amendment Request
June 27, 2025
Page 7
7
Option A
Option B
Approved
PUD
Partial
Twinhome
PUD
Reduced
Lot Size
PUD
Density
Net Acres 34.83 33.8 33
Units 65 72 65
Units/Acre 1.87 2.13 2.00
Open Space
Gross Acres 78.24 78.24 78.24
Acres 49.01 49.7 50.4
% 63% 64% 64%
As shown above, to get to 2.0 units per acre or greater the lot areas need to be reduced, or the units
increased or some combination to get to 2.0 or greater units/acre. In all cases shown the open space
also increases.
Lot Set-backs* Approved
PUD
Partial
Twinhome
PUD
Reduced
Lot Size
PUD
Impervious %
Villas 50% 55% 55%
Twinhomes NA 55% 55%
As mentioned in the narrative, when the lots get reduced in size and the same home is placed on that
lot the hardcover percentage goes up. We are not looking to increase the overall amount of hardcover
as approved with the initial PUD, but the percentage could change to accommodate some of the smaller
lots. Above is our best guess at this time.
E – Impacts on the City
Transfer of Density
When changing the guiding as requested for the Eberhard Property into the Metropolitan Urban Service
Area(MUSA) for sewered development, it would be subject to the provisions and density calculations
required by the Met Council. That currently requires that the City meet an overall 3.0 units/acre on
average in the City (in the future the Imagine 2050 plan will require 3.5 units/ac).
2298 Inwood Ave N – Lake Elmo – Comprehensive Plan Amendment Request
June 27, 2025
Page 8
8
Currently, the City’s lowest density guiding is Low Density Residential which requires that project fall
between 2.5 - 4 units/acre. This is actually more restrictive than many similar cities across the
metropolitan area within the jurisdiction of the Metropolitan Council.
Currently the way the Met Council calculates net density requires ponding, right of way, and lotted area
to be included in the net density acres. Wetlands, buffers, and dedicated open space can be subtracted.
As shown above the approved Preliminary Plat for Highpointe Crossing when using the Met Council net
acre definition is 1.87 units/acre. For the Council discussion we showed how the City could
accommodate the Eberhard property without falling below the 3.0 units/acre. We assume that staff will
be providing this calculation and are therefore not repeating them.
F. Provision of Sanitary Sewer Service – City of Lake Elmo
2298 Inwood Ave N – Lake Elmo – Comprehensive Plan Amendment Request
June 27, 2025
Page 9
9
It is our understanding that there is a sewer service connection and future capacity at CR 10 and Island
Trail. That is about 1.78 miles from the Eberhard property south on Inwood, east on CR 10 to Island Trail
in the Inwood development as shown on the exhibit below. This would require a lift station with a
forcemain extended from the Eberhard Property to the Inwood Development. We were told that the
capacity for the connection will not be available until the downstream projects by the Metropolitan
Council for trunk expansion and lift station upgrade have been completed which is scheduled for some
time in the summer of 2026. We think we can work within that timeframe.
G - Closing
• We believe that the approved OP-PUD plan fulfilled a number of goals of the City. All of those
are still accomplished and do not change if a same or similar PUD is approved with the primary
difference being city sanitary sewer service versus a community septic system.
• This Highpointe Crossing neighborhood will still…
o Protect over 60% of the property as open space in a conservation easement.
o Restore the open space from what is today 80% corn and soybeans to native prairie.
o Buffer the site from surrounding development by 200’ – No other OP development has
ever done this. While the buffer is 200’ the distance from our homes and the nearest
homes will be greater than a football field.
o Treat storm water including the use of a water reuse system to lower the burden on the
City water system by reducing the amount of good, treated water that is used to water
lawns.
o Provide trails, landscaping and theming to make this neighborhood different and
special.
oooooooooo
oooooooooo
6
694 PLAT OF PRAIRIE RIDGE
PARK HEIGHTS PARK
TABLYN PARK
InwoodAvenueNorth13
6
ArcGIS Web Map
Parcels
DNR Protected Waters ID
MNWASH24_Property_458568E170808N.sid
Red: Band_1
Green: Band_2
Blue: Band_3
7/22/2025, 8:42:13 AM
0 0.2 0.40.1 mi
0 0.35 0.70.17 km
1:19,409
NET RESIDENTIAL DENSITY LOCAL PLANNING HANDBOOK
Net density is important in ensuring the region’s orderly and efficient growth, and to provide essential services that
benefit the metro area. Communities and land within the Metropolitan Urban Service Area (MUSA) receive a higher
level of regional services and investments than those in the Rural Service Area, such as regional wastewater services,
regional highways, transit service, the Regional Parks System, and programs that support redevelopment. In return,
the Council expects jurisdictions in the MUSA to plan for and build the higher levels of development that economically
support those regional services.
The region is able to provide cost-effective infrastructure and services when it is able to anticipate where, when, and
to what extent growth will occur. The Council establishes overall density expectations for communities based on
their Community Designation with additional expectations near transit stations. Density thresholds are based on an
understanding of future regional growth, market demand in different parts of the region, existing development patterns
and redevelopment opportunities, existing planned land uses in local comprehensive plans, and regional policies to
support the concentration of higher density growth around transit stations.
Setting minimum average densities for new development
provides communities with the flexibility to determine which
areas in their community are best suited for higher or lower
density development under the framework of meeting that
overall minimum on available developable lands.
HOW DO WE CALCULATE NET DENSITY?
The Council measures minimum net density to support forecasted growth by taking the minimum number of planned
housing units and dividing by the net acreage. Net acreage does not include land covered by wetlands, water bodies,
public parks and trails, public open space, arterial road rights-of-way, and other undevelopable acres identified in or
protected by local ordinances such as steep slopes.
NET RESIDENTIAL DENSITY GUIDELINES
What can be netted out from Gross Acres Important notes What cannot be netted out
Wetlands and Water Bodies Defined as public waters and
wetlands consistent with state
delineation practices, buffers may
also be included*
Setbacks from water bodies,
storm ponds, NURP ponds
Public Parks and Open Space Must be public or in permanent
open space (federal, state, regional,
local) or land held in perpetual open
space in an open space easement.
Privately held conservation
easements, private parks,
private trails
Arterial Road Rights-of-Way Arterial roads are part of the
metropolitan highway system
Arterial Road Right-of-Way
Local road rights-of-way
that are not part of the
metropolitan highway system
Other areas that are protected from
development by local ordinances
Floodplains, steep slopes, bluffs
*Areas protected or removed from development by local ordinance can be netted out
Metropolitan Council
390 Robert Street North
Saint Paul, MN 55101
metrocouncil.org
Main: 651.602.1000
TTY: 651.291.0904
Public Information: 651.602.1500
public.info@metc.state.mn.us
LOCAL PLANNING HANDBOOK
July 2015
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Oakdale
Inwood Avenue North10th Street North
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Eagle Point BoulevardLakeOlson
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ke
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