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Item No: 05A Meeting Date: May 5, 2021 Type of Business: Planning Case Planning Case: City of Mounds View Staff Report To: Planning Commission From: Jon Sevald, Community Development Director Item Title/Subject: Resolution 1133-21, Recommending Approval of Ordinance 976, Amending the Mounds View Municipal Code, Chapters 1114 and 115, Relating to Drive -In and Convenience Food Establishments Introduction: El Loro Restaurant, 2535 Mounds View Boulevard, has been vacant since 2017. The property is zoned B-4 Regional Business, which prohibits drive-thru restaurants. Paster Properties (owner) has had some interest from fast-food restaurants. The topic was discussed by the City Council's Development Committee, which favored allowing a drive-thru. This was further discussed during the City Council's April 5' Work Session regarding Development Opportunities and Constraints. The City's intent is to remove zoning constraints (when warranted) that may be prohibiting redevelopment opportunities. Discussion: Mounds View Square shopping center consists of three buildings; (1) the main L-shaped building, (2) El Loro; and (3) the Caribou Coffee/H&R Block/Little Caesars Pizza building. The main building and El Loro are zoned B-4. The Caribou building (formerly Hardee's) is zoned B- 3. The B-3 district allows drive-thru's as a Conditional Use Permit (CUP). The B-4 district prohibits them. For the El Loro site, there are two options; (1) amend the B-4 district to allow drive-thru restaurants, similar to the B-3 district; or (2) rezone the property from B-4 to B-3. The end result is the same, but the path differs. The original intent when Mounds View Square was developed in 1974 was for a traditional sit- down restaurant (e.g. Bridgeman's, Totino's, El Loro). Since this time, dining habits have changed, favoring fast-food restaurants (e.g. McDonalds, Subway), and fast casual restaurants (e.g. Chipotle, Noodle's & Company). In winter/spring 2020, there was a proposal to remodel El Loro into "Sota Tap House and Grill", but was pulled due to the pending Covid-19 pandemic. If requiring a Conditional Use Permit, the intent is for the Planning Commission/City Council to review the use of the drive-thru portion of the restaurant, such as, is there enough stacking space, and is there enough buffering of car headlights, etc. The same items are reviewed as part of a Development Review, required for new buildings or building expansions more than 10% or 10,000 sq ft. Thus, the CUP and Development Review process may duplicate each other at times. CUP's require a Public Hearing. Development Reviews do not. The proposed Ordinance Amendment removes duplicate language (# a - k), which refers to other sections of the City Code. In Staff's opinion, this provides a false -sense that the drive-thru must only comply with those regulations referenced, and not others. The Commission may also want to consider allowing Drive-Thru Restaurants as a Permitted Use, instead of a CUP.