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Page 3 <br />The City's discretion in approving or denying a site plan is limited to whether or not the <br />proposed project complies with the Comprehensive Plan and Zoning Ordinance requirements. If <br />it meets these standards, the City must then approve the site plan. <br />4. CONTEXT: <br />A. Surrounding Land Use and Zoning <br />The properties to the north is zoned Central Business (C-1) and Central Residential (CR-3) and is <br />and are occupied with single family homes. The property to the east is occupied by Egg Lake. <br />The property to the south is zoned Central Business (C-1) and is occupied by the Dominos Pizza <br />Building. The property to the west across Highway 61 is zoned Central Business (C-1) and is <br />occupied by the Hugo Feed Mill, single family home, and City Hall. All of the properties <br />surrounding the property are classified as Mixed -Use (MIX) on the 2040 Comprehensive Plan <br />and are in the downtown plan. <br />B. Natural Characteristics of Site <br />The site is vacant and generally flat. There are existing mature trees on the property. The site is <br />adjacent to Egg Lake and there are wetlands between the property and Egg Lake. <br />5. ANALYSIS: <br />A. Planned Unit Development (PUD) <br />The use of the PUD zoning allows the developer zoning ordinance flexibility to create a master <br />planned development. The PUD zoning is tied to a specific PUD general plan that is proposed <br />with this application. <br />The applicant is requesting approval of a PUD for the development. PUD's offer enhanced <br />flexibility to develop a site through the relaxation of zoning district standards. The use of the <br />PUD zoning also allows for a greater variety of uses, internal transfers of density, construction <br />phasing and a potential for lower development costs. In exchange for this enhanced flexibility, <br />the city has the expectation that the development plan will result in a significantly higher quality <br />and more sensitive proposal than would have been the case with the use of other, more standard <br />zoning districts. <br />In exchange for the proposed PUD, the applicant is proposing: <br />• Exceeding the landscape ordinance requirements. <br />• Preservation of existing large trees on the property. <br />• Public trails along Egg Lake with trails easements to extend the trail to the north and south. <br />Staff believes that the layout of the proposed PUD general plan exceeds the City's standards for <br />commercial developments. The applicant has offered a more creative and efficient approach to <br />