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Page 2 The applicant is requesting PUD flexibility on the following: • Shoreland ordinance regulations o Minimum Building setback from ordinary high water(OHW) level of Egg Lake o Maximum impervious surface o Maximum Dock size over the OHW level of Egg Lake o Maximum building height • Parking regulations o Minimum side yard setback for parking lot o Minimum parking requirements • Minimum rear yard setback requirement In exchange for this flexibility, the developer is: • Landscape plan and exceeds ordinance standards • Design standards and architecture that exceeds ordinance standards • Creating a main street atmosphere in the Central Business District • Public access to Egg Lake 2. LEVEL OF DISCRETION IN DECISION-MAKING The City has relatively high level of discretion in approving a PUD. A PUD must be consistent with the City's comprehensive plan. The City may impose reasonable requirements in a PUD not otherwise required if the City deems it necessary to promote the general health, safety, and welfare of the community. The City's discretion in approving or denying a preliminary plat is limited to whether or not the proposed plat meets the standards outlined in the subdivision regulations in the City Code. If it meets these standards, the City must approve the preliminary plat. 3. CONTEXT: A. Surrounding Land Use and Zoning The properties to the north is zoned Central Business (C-1) and Central Residential (CR-3) and is and are occupied with single family homes. The property to the east is occupied by Egg Lake. The property to the south is zoned Central Business (C-1) and is occupied by the Dominos Pizza Building. The property to the west across Highway 61 is zoned Central Business (C-1) and is occupied by the Hugo Feed Mill, single family home, and City Hall. All of the properties surrounding the property are classified as Mixed-Use (MIX) on the 2040 Comprehensive Plan and are in the downtown plan. 2