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HomeMy WebLinkAboutPC 10.27.22 Minutes for the Planning Commission Meeting of Thursday, October 27, 2022 Chair Kleissler called the meeting to order at 7:00 pm. PRESENT: Andress, Arcand, Derr, Kleissler, Petty ABSENT: Lessard STAFF: Bryan Bear, City Administrator Max Gort, Associate Planner Pledge of Allegiance. Approval of Minutes for the Planning Commission Meeting of September 22, 2022 Commissioner Arcand made a motion, seconded by Commissioner Petty to approve minutes for the meeting of September 22, 2022. Ayes: Andress, Arcand, Kleissler, Petty Abstain: Derr Motion carried. Public Hearing: TPP, LLC, c/o Summit Management, LLC – Site Plan, Comprehensive Plan Amendment, Zoning Amendment, CUPs, Variance, and Minor Subdivision for Apartments and Manufactured Home Community Expansion Staff provided a background on the proposal to expand the existing manufactured home community, named Hugo Estates, and to construct a 54-unit apartment building. Several land use applications were submitted for the two parcels that were purchased for this project. The first was to change the land use designation in the Comprehensive Plan from Medium Density Residential (MD) and Industrial (IND) to High Density Residential (HD). The second was to rezone the properties from Low Density Multi - Family Residential (R-4) and General Industrial (I-3) to Medium Density Multi-Family Residential (R-5). Two conditional use permits were requested to allow for the apartment use and for the manufactured home community use respectively. A variance was requested to for the apartment building to reach 39 feet in height, where a maximum of 35 feet is required by ordinance. A minor subdivision was requested to have the apartments on a separate parcel from the manufactured home community. The site plan for the properties shows an approximately 19,500 square foot three story apartment building with detached garage parking. The building is located on the western portion of the site and the parking lot is on the east side of the building. Further to the east, the site plan shows for an addition of 16 “double-wide” manufactured homes with attached garages on the front. Generally, the October 27, 2022 PC Minutes Page 2 site plan proposal meets requirements in the City Code and Comprehensive Plan. Staff recommended approval of the variance for the building’s height, finding that there are practical difficulties in meeting the ordinance standard. Staff will be working with the applicant to change aspects of their site plan before the permitting process such as landscaping, lighting, trails and sidewalks, building architecture, and stormwater management. Generally, staff was of the opinion that the applicant’s proposal keeps with the vision of the comprehensive plan, and recommended approval of the applications for Hugo Estates apartment building and manufactured home community expansion. Members of the applicants’ development team were in attendance and addressed the Planning Commission. Erin Lambert, owner of Hugo Estates and Daniell e Hoffman, attorney with Summit Management gave a presentation detailing the background of the company’s management of the manufactured home community and their vision to expand. The presentation showed renderings of the apartment building and new manufactured homes. The presenters reiterated their goals for the project, and that conversations are happening with the Hugo Good Neighbors Food Shelf to create pedestrian access to Francesca Avenue. Additional members of the development team in attendance were introduced: David Majchrzak of Cole Group Architects, Bryan Miller of Larson Engineering, and Jaime Scheerz of Summit Management. Commissioner Arcand asks how many trees along the north property line bordering the Peloquin Industrial Park will remain. Lambert responds that as many as possible will remain, but some will be taken out per the landscape plan. Commissioner Arcand asks if the manufactured home community expansion will be allowed. Associate Planner Gort responds that the zoning amendment applicat ion is to allow for the manufactured homes to be built on the parcel at a higher density. City Administrator Bear adds that other plans have been proposed for this parcel in the past, but this one is the best in staff’s view. Commissioner Andress asks how wide the road extending to the manufactured homes will be, and whether emergency vehicles will be able to perform their duties. Mr. Miller responds that the road will be wider than a typical driveway at 30 feet. Commissioner Andress asks a follow up quest ion about storage for snow removal, and Mr. Miller points to the green space between the manufactured homes and stormwater pond. Bear points out that the illustration on-screen at this time was not completely to scale and did not show the rendered drawing all the way to the east end of the property. Chair Kleissler asks about the adjacent residential development at Oneka Lake Reserve and its respective park dedication, whether the park will remain if the Hugo Estates expansion doesn’t go through. Bear responds that Oneka Lake Reserve is zoned and approved for townhome development, but implementation is dependent on a developer’s building decisions which include the park. Chair Kleissler opened the Public Hearing at 7:34 PM John Peloquin, owner of the neighboring Peloquin Industrial Park, asks about the stormwater management plan and whether the water will be draining to the industrial park and its drainage ditch. October 27, 2022 PC Minutes Page 3 Mr. Peloquin stated that Public Works Director Scott Anderson reviewed the ditch and its shallow level, which causes Mr. Peloquin to be concerned about the ditch flooding. Mr. Miller stated that runoff from the apartment is brought into the retention pond, which is sized for a certain storm event and that any overflow would be directed to the ditch, but additional runoff would not be directed to the ditch. Bear stated that the city stormwater requirements manage sites for volume and rate control, but that the comment from Mr. Peloquin is well taken and will be directed to the Public Works department. Commissioner Arcand asks for clarification on whether the water within the stormwater pond recharges the aquifer. Bear states that the retention pond is designed to recharge groundwater stores, and that in a large storm event the pond is designed to slowly release water into drainage ditches. Chair Kleissler asks if revisions to the site plan which have not been finalized are concerning to staff. Ms. Hoffman responded that staff’s conditions are agreeable, and that some revisions are already in progress. Commissioner Petty asks where pedestrian access to Francesca Avenue through the Food She lf property will be. Ms. Hoffman pointed to the location of a sewer easement which is being considered, and Bear states that there is no city property involvement, and therefore the applicant will be working exclusively with the food shelf to create any pedestrian access. Sandra Beck, of 6125 151st Street N, said that it sounded like trees would be cut down similarly to the plans of Oneka Lake Reserve, and was concerned with a lack of vegetation. Bear highlights the row of landscaping along the north end of the property line, and states their purpose as screening from the Peloquin Industrial Park. Commissioner Petty asked where the linear pond that staff recommended the removal of is located. Bear pointed it out on the site plan, but that it is a separate body from the ditch along Highway 61 that Mr. Peloquin was referencing. Stephanie Metzler, of 6119 151st Street N, states concern of trespassing from residents in the existing manufactured home community onto her property, and states that a wall had been proposed in the past. Ms. Metzler stated that residents had created a path to a portion of her property on the other side of the neighborhood’s stormwater pond, where they had been participating in illicit activity. Ms. Scheerz, who oversees operations within the community, states that this is the first they had been hearing of this concern and asked how recent it was. Ms. Metzler stated that the most recent occurrence was at the beginning of this summer. Ms. Scheerz stated that the operations staff will ta ke steps to prevent future occurrences and will explore options to address the issue with the new construction. No one else spoke. Chair Kleissler closed the Public Hearing at 7:48 PM October 27, 2022 PC Minutes Page 4 Commissioner Arcand believes the plan fits nicely with the surrounding area and provides a nice transition area between the residential community and the industrial park. Commissioner Derr stated that the aesthetic improvements in Hugo Estates under Summ it Management’s ownership have been noticeable. Chair Kleissler stated the proposal is a good use of the oddly-shaped property, and that the applicants did a nice job overall. No more discussion. Chair Kleissler recommended separate voting on each application. Commissioner Derr made a motion, seconded by Commissioner Petty, to approve the Comprehensive Plan Amendment. All ayes. Motion Carried. Commissioner Petty made a motion, seconded by Commissioner Andress, to approve the Zoning Amendment. All ayes. Motion Carried. Commissioner Petty made a motion, seconded by Commissioner Derr, to approve the two Conditional Use Permits. All ayes. Motion Carried. Commissioner Petty made a motion, seconded by Commissioner Derr, to approve the Variance. All ayes. Motion Carried. Commissioner Petty made a motion, seconded by Commissioner Derr, to approve the Minor Subdivision. All ayes. Motion Carried. New Business: Peter Stalland, Knute Development, LLC. – Sketch Plan for Oneka Commons Staff provided background on a sketch plan for a proposed use on a 92-acre property being developed into 8 parcels. The applicant, Peter Stalland, is requesting informal nonbinding comments on the plan to construct two 70-unit apartment buildings on a portion of property facing CSAH 8, and that is guided and zoned for Commercial use in the Comprehensive Plan and City Code. There are areas on the east side of the property which are guided for Mixed Use and are defined within the Downtown Plan, which are the only areas in the Comprehensive Plan which can handle significant density. The sketch plan has proposed extensions of Victor Path and Fenway Boulevard. In order to have the applicant’s proposed 20 units per acre with the apartment project, they need to both locate to an area guided for Mixed Use in the Comprehensive Plan and demonstrate a mix of related uses on the same parcel. Since the applicant is proposing that each parcel be developed separately, staff is of the opinion that the sketch plan does not meet the definition of Mixed Use, and theref ore the existing land use and zoning designations should be followed when proceeding with this project. Staff recommended that the Planning Commission discuss the following topics: maintaining existing land use designation, considering alternative locations on the 92-acre property where an apartment project could be October 27, 2022 PC Minutes Page 5 located, and whether a large apartment complex could be integrated into a mixed -use development. Staff recalled comments received by the EDA which placed importance on preserving the existing commercial designations along CSAH 8. Commissioner Andress stated that the property features a very desirable corner with the intersection of CSAH 8 and TH 61, and that he would like to see a proposal that blends in well and achieves the goals of the Downtown Plan. Commissioner Petty stated that she is trying to visualize how the proposed apartments would look when viewed from CSAH 8. Bear stated that the discussion topics staff posed are to consider such issues. Commissioner Petty mentioned an apartment building in Forest Lake which is located very close to a frontage road, and has concerns about encroachment on major roadways. The applicant, Peter Stalland approached the Planning Commission stating that he wanted to give comments from a development perspective. Stalland stated that it is too expensive and risky to develop the property all at once, and believes that an apartment project is the best starting point for developing the whole property. Stalland showed the Commissioners a redesigned sketch plan, which had not been reviewed by staff, that shows the building orientation flipped and located closer to the corner of CSAH 8 and TH 61. Stalland stated that areas further to the southwest of the property wouldn’t work as well for the apartment project since the soil isn’t conducive to underground parking. Commissioner Arcand asks about the topography of the southerly areas on t he property which are guided for low-density residential. Stalland says that the necessary modifications would be too expensive to construct his desired product. Commissioner Arcand replies that he is not in favor of apartments being located right on CSAH 8, which he feels is better suited for commercial frontage. Chair Kleissler says that having standalone apartments on CSAH 8 would significantly disrupt the surrounding area. Commissioner Derr adds that the existing Rosemary apartments are located behind several commercial developments relative to the county highway. Commissioner Arcand states that a lot of time and energy was put into the Comprehensive Plan process, and that the decision to alter the plan should not be taken lightly. Commissioner Derr adds that the residents favored commercial use along the county highway during that process. Chair Kleissler asked the Commissioners to give feedback on the idea of incorporating the apartments in a Mixed-Use development. Commissioner Petty stated that she would not be in favor of a long wall encroaching on TH 61. Commissioner Arcand stated that he would not be pleased without commercial uses on the corner of CSAH 8 and TH 61. Stalland agrees with the Commissioners that small -scale commercial on that corner would be best, and that he would be interested in making Comprehensive Plan and zoning amendments although it is financially intensive. Commissioner Petty asks if the apartments could be moved to the south of the commercially designated areas along the county highway. Stalland responds that the option has been considered but the extension of infrastructure would be intensive. October 27, 2022 PC Minutes Page 6 Bear states that the frontage roads proposed on the sketch plan are hypothetical and can be moved in any number of configurations. Bear adds that the underlying zoning in areas guided Mixed-Use is commercial, that any project involving a residential use would require a zoning amendment, and a discussion would need to be had about the specifics of uses. Gort states that staff encouraged the applicant to factor in how any horizontal mixed -use buildings would relate to each other when designing a mixed -use plan, and Bear adds that the applicant may appreciate more feedback on the mix of uses. Commissioner Petty stated that she better understands the scope of the uses knowing that commercial buildings are incorporated and related to the apartments, recommending more detailed renderings. Commissioner Andress relates the concern about the apartments encroaching on the Hardwood Creek Trail to an example in White Bear Lake, and wants top make sure that the trail and highway aren’t dominated by the building. Commissioner Derr agrees that a rendering of the view from adjacent roadways would be useful, and that the land is set lower than t he road in some areas along CSAH 8. Commissioner Petty responds that the land isn’t as low on this property than on other stretches of the highway. Chair Kleissler stated that she would like to see commercial uses closer to the roads with the apartments further back, but is still concerned with the apartment wall aligning with Highway 61, suggesting there may be a way of moving the “L” shape line away from the highway. Gort responds highlighting the Multifamily Design Guidelines requiring articulated facad es, stating that a wall along the highway would not be flat. Commissioner Arcand asks about Stalland’s plans for the commercial uses considering his professional focus on apartment development. Stalland points to architectural consistency across the prop osed buildings, which would enable his real estate broker Bill Lentsch, who was also in attendance, to more easily sell the commercial uses. Commissioner Arcand asks Lentsch about his interest in the commercial uses. Lentsch stated that he receives several inquiries about commercial development, but there is some difficulty in creating solid plans without existing infrastructure. Commissioner Arcand asks why the reluctance is still there today, and Lentsch stated that City staff has been encouraging development of the entire 92-acre property at once. Lentsch recalled the AUAR and grant money he received, but ultimately declined since the funds were too large for him to properly use. Furthermore, Lentsch stated that remodeling the floodway per terms outlined by FEMA was difficult, and that stormwater management for the entire property would be difficult, which ultimately led to interest falling off from potential developers. Commissioner Petty said that the applicant’s architectural rendering looked nice. Commissioner Arcand stated that the existing land use fits well on the corner parcel, and asks staff when the percentage of commercial to residential uses is to be decided. Bear responds that a lot of discretion can be given to the Planning Commission during the process, reiterating the challenge of October 27, 2022 PC Minutes Page 7 rezoning and changing land use designation in the Comprehensive Plan. Bear stated currently, the highest allowed density for residential use is 12 units per acre, but that may need to change considering market trends demanding higher density, as well as a changing appetite in the community. Stalland asks if a new ordinance would need to be created with a rezoning of the property. Bear states that in an area designated for mixed-use, rezoning to a PUD district is usually anticipated. However, in areas guided for commercial use, there is no zoning district to allow 20 units per acre. Stalland asks about the Metropolitan Council’s guide for density within the City, and Bear responds that the city - wide goal is 3 units per acre, and that the city needs to demonstrate how that goal is achieved when allowing a 20 unit-per-acre project. Commissioner Petty asks for clarification on how the mixed-use area could be extended. Bear states that he’s heard some discussion around apartments in the mixed-use area, and that depending on where the extended frontage road ends up in the final plans that some options to the south may be available. Chair Kleissler asks the commissioners how they feel about a jump in density. Bear states that this won’t be the last time that an apartment project with this density w ill be requested, and that the Planning Commission may want to consider an approach to high -density apartments in the future. Stalland states that the market is heavily demanding more multifamily housing, and that the cost of utilities can’t justify construction at 12 units per acre. Chair Kleissler asks if the applicant is requesting any further specific feedback. Stalland states that he wants to know if they’re interested in higher density and if they can give him a preferred location. Commissioner Arcand states that his first choice for a location would be on Oneka Parkway but further away from CSAH 8. Chair Kleissler says that the location in the sketch plan is her least favorite, but not sure about a favorite. Commissioner Petty states that she is comfortable with a density of 20 units per acre, but that the Planning Commission and City need to be strategic about where it is placed. Commissioner Arcand states that he wants to consider how the “rural feel” of Hugo can preserved with high density. Bear replies that high-level questions like that start with the Comprehensive Plan, and that the discussion shouldn’t be had without interest from the Planning Commission. Lentsch asks the commissioners what they have heard from the community in terms of what they would like to see in commercially-designated areas. Several commissioners respond that the number one item is restaurants, with some demand for smaller retail uses like drug stores. October 27, 2022 PC Minutes Page 8 Old Business Bear mentions that Commissioner interviews have been scheduled during November, and that new Planning Commissioners may be involved soon. Chair Kleissler asks for meeting dates in November and December. Gort responded with the dates on November 10th, December 8th, and December 22nd. Adjournment Commissioner Petty made a motion, seconded by Commissioner Arcand, to adjourn the meeting at 9:03 PM. All ayes. Motion Carried. Respectfully Submitted, Max Gort, Associate Planner