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01-26-2016 PC MIN ity of Elk �, Meeting of the Elk River Planning Commission River Held at the Elk River City Hall Tuesday,January 26, 2016 Members Present: Chair Eric Johnson, Commissioners Andrew Crook,Jeremy Johnson,Jill Larson-Vito,Mark Konietzko and Brad Thiel Members Absent: Commissioner Garrett Christianson Staff Present: Planning Manager Zack Carlton,Senior Planner Chris Leeseberg and Sr. Administrative Assistant Debbie Huebner 1. Call Meeting to Order Pursuant to due call and notice thereof,the meeting of the Elk River Planning Commission was called to order at 6:30 p.m.by Chair Eric Johnson. 2. Pledge of Allegiance The Pledge of Allegiance was recited. 3. Consider January 26, 2016, Planning Commission Agenda Moved by Commissioner Johnson and seconded by Commissioner Konietzko to approve the January 26,2016,Planning Commission agenda. Motion carried 6-0. 4.1 Consider December 22, 2016, Board of Adjustments Minutes Motion by Commissioner Johnson and seconded by Commissioner Larson-Vito to approve the December 22,2015, Board of Adjustments meeting minutes. Motion carried 6-0. 4.2 Consider December 22, 2016, Regular Planning Commission Meeting Minutes Motion by Commissioner Larson-Vito and seconded by Commissioner Johnson to approve the December 22,2015, Regular Planning Commission meeting minutes. Motion carried 6-0. 5.1 Briggs Properties - 17432 Zane Street NW • Land Use Amendment to change the land use from FAST—The Point, to Highway Commercial, Case No. LU 16-01 Public Hearing • Conditional Use Permit to operate a hotel, Case No. CU 16-01 Planning Commission Minutes Page 2 January 26,2016 Zack Carlton presented the staff report. Mr. Carlton reviewed the criteria required in order to grant a Conditional Use Permit. Staff recommended denial of the land use amendment, stating that the request is not consistent with the comprehensive plan and the use is not compatible with surrounding properties. Staff also recommended denial of the Conditional Use Permit, citing that conditions #2, #3 and #7 cannot be met. Commissioner Johnson stated that he had a potential conflict of interest on this item and excused himself from discussion and voting on this item. Chair Johnson opened the public hearing. Mark Weston,Briggs Companies, 19021 Freeport Street NW, stated that she met with Zack Carlton to discuss the possibility of operating the hotel as it currently is,as an extended stay, by requesting an interim use permit. She stated that would allow them time to acquire the property to the south needed to convert the use to an apartment building. Chair Johnson asked what the time frame would be for the interim use. Ms.Weston stated five years. Commissioner Larson-Vito asked if they are operating as an extended stay hotel,when the online site for the business states it is an apartment building. Ms.Weston stated they have been operating as an extended stay hotel since 2011. Chair Johnson asked staff if Briggs Companies could submit a new application for an interim use permit. Mr. Carlton stated that an interim use permit would allow some flexibility,and could allow the use to continue,with additional inspections as an apartment building. Pat Briggs, 19021 Freeport Street NW, discussed the proposed changes by MnDOT to Highway 10 and impacts on the subject property. He asked if the proposed changes were a 20-year plan. Mr. Carlton stated yes, a 20+ year plan. Mr. Briggs stated that MnDOT contacted him and he met with them approximately three months ago regarding another property. He stated that MnDOT told him there is some opposition to the FAST Plan. Mr. Briggs stated that the site is the former Americ-Inn and he took it over in 2011, operating as an extended stay hotel. He stated that in working with previous city staff,the goal was for the property to be zoned R4 and he was moving toward that goal. He discussed the loss of the nearby property sale to Skeeter Boats,which he felt would have funded the R4 apartment building project. Mr. Briggs stated that he felt there are misconceptions about the extended stay use. He stated that other hotels and motels in the city have cooking facilities, such as the Landmark Hotel on Main Street. Mr. Briggs stated that there are also extended stay hotels in Maple Grove which all have cooking facilities. Mr. Carlton noted that the City of F1k River's ordinance does not allow them. Mr. Briggs questioned the definition of hotel in the zoning land use regulations and extended stay. Commissioner Larson-Vito stated there still is the discrepancy in what Mr. Briggs was saying his operation is and what his website states. Mr. Carlton stated that if a stay is past 7 days it is considered lodging and the city's ordinance does not allow it. Mr. Briggs stated that some Planning Commission Minutes Page 3 January 26,2016 stays are 90 days and some could be 2 -3 years. He felt his operation is convenient and provides a safe, secure environment at a low cost. Mr. Briggs discussed John Gergen's State Fire Marshal's report dated May 1,2014. Ms. Weston stated that their database does not have a record of receiving a phone call from the State Fire Marshal's office on May 1,2014,and that the conversation did not happen. Mr. Briggs noted that their records show that Ms. Weston was not in the office on that date and could not have received the call. Commissioner Larson-Vito asked for confirmation that representatives from The Briggs Companies were asserting that statements included in the May 1,2014,report were fabricated or inaccurate. Ms.Weston confirmed that statement. Mr. Briggs also stated that the conversation between Marla and the Fire Marshal,as described in the report, "did not occur." Mr. Briggs stated that he will be requesting a 5-year interim use permit to allow extended stay at his facility and he asked that the fee be waived, since he has already spent a considerable amount on the previous applications which have been withdrawn. Mr. Carlton stated that would be up to the City Council to determine if a fee can be waived. Motion by Commissioner Konietzko and seconded by Commissioner Thiel to recommend denial of the request by Briggs Properties for a Land Use Amendment to change the land use of property located at 17342 Zane Street NW,based on the following: 1. The proposed use is not consistent with the comprehensive plan. 2. The proposed use is not compatible with surrounding properties. Motion carried 5-0-1. Commissioner Johnson abstained. Motion by Commissioner Larson-Vito and seconded by Commissioner Thiel to recommend denial of the request by Briggs Properties for a Conditional Use Permit, based on the finding that#2,#3 and#7 of the criteria required for granting a Conditional Use Permit are not met. Motion carried 5-0-1. Commissioner Johnson abstained. 5.2 Rick Haugland— 21475 Highway 169 NW Mr. Leeseberg stated that this application is being postponed so the applicant can provide city staff additional information. Chair Johnson opened the public hearing and continued it to the February 23,2016 Planning Commission meeting. 5.3 City of Elk River— 19640 and 19660 Proctor Road NW Chris Leeseberg presented the staff report. He stated that he received several calls from property owners, asking what impact the rezoning would have on their property. Mr. Leeseberg stated that the rezoning would not impact other properties. Staff recommended approval of the request. Planning Commission Minutes Page 4 January 26,2016 Chair Johnson opened the public hearing. Beverly Putnam, 19571 Proctor Road, stated that she lives across the road, and just wanted to find out what was going on. Chair Johnson stated the action is more of a housekeeping nature, to make the use consistent with the comprehensive plan and adjacent uses also outside the Urban Service District. Motion by Commissioner Johnson and seconded by Commissioner Crook to recommend approval of the request by the City of Elk River Elk River to rezone 19640 and 19660 Proctor Road NW from Rlc to R1a Single Family Residential. Motion carried 6-0. 6. General Business - None 7.1 Attendance Policy Update Zack Carlton reviewed changes in the boards and commissions attendance policy which were recently approved by the City Council. 7.2 City Council Liaison Update Councilmember Burandt noted that the City Council voted 3-2 to approve the Dargis request to vacate a road right-of-way easement. Chair Johnson adjourned the regular meeting at this time to worksession (7:22 p.m.). 8.1 Modern Construction of Minnesota— Lot 4, Block I, Mississippi Ridge Second Addition — Concept Review for proposal to construct a mixed use building (residential and commercial), Case No. CU 16-02 Zack Carlton reviewed Modem Construction of Minnesota's proposed development for a five-story structure with 92 residential units on the top four floors and leasable commercial spaces on the first floor. He explained that Mr. Hartung owns 11 acres along the Mississippi River and proposes a land exchange with the city for a city park. He asked the Planning Commission to provide input on the reduced parking,reduced setbacks,the location of the building on the bluff line, and stormwater concerns. Mr.Jesse Hartung,applicant representing Modern Construction,provided information regarding the proposed project including the use of sustainable materials and a new stud concept that is proposed to be used called T-stud,which provides energy efficiency and savings. He also discussed amenities to be included in the project such as a rooftop garden and a running track. Mr. Hartung stated he was not aware of the stormwater issue until recently. He noted that they currently do not meet the parking requirement and he is proposing 2 spaces per unit. Mr. Hartung stated that staff has been very supportive of the project and are working with him through the site issues. He noted that the ordinance requires 2.5 parking spaces per unit, Planning Commission Minutes Page 5 January 26,2016 and the biggest concern is the residential parking. He discussed a car sharing program that he is proposing and ways to add additional parking. He stated he did not feel the parking would be a problem, since 50 of the units are 1-bedroom units. He noted that there will also be some low income 1-bedrom units,renting at$600/month,which will allow them to qualify for Tax Increment Financing (TIF). Discussion followed regarding possible uses at park in this location, such as a boat launch. Also there was discussion of the possibility of creating overflow parking on the lots to the west. Commissioner Thiel stated that he is aware that the biggest issues with this type of housing are dog waste and parking. He stated he could only support the project if they can meet the code for parking. Mr. Hartung stated that the surface parking would be for the retail space and restaurant. Chair Johnson stated that he is supportive of the project and the public green space possibility along the river. He would like to see parking overflow identified on the plan. Mr. Hartung stated that he could do that. Mr. Hartung discussed the energy/green concepts that will be utilized in the project such as the T-studs,geothermal, solar, and car charging stations. He also discussed the concept of including utilities in the rent payment, such as electric, cable, and internet. Commissioner Johnson asked if it would be possible to purchase property from Spire Bank to provide additional storm water ponding. Mr. Carlton explained the land exchange the city has done with Spire. Mr. Hartung stated that the bank may consider providing the land, since they will be having 92 units of potential customers moving in across the street. Mr. Carlton stated that he could speak with the bank to see if there was any interest. Commissioner Larson-Vito stated she was in agreement the parking plan needed to be addressed. Commissioner Johnson asked if the street was wide enough for parking. Mr. Carlton stated yes, and there may be some opportunity for 45 degree angle parking. Discussion followed regarding present and future traffic patterns in this area. Chair Johnson asked if the Planning Commission could be updated on the Environmental Division and the Parks and Recreation comments on the project. Mr. Carlton stated yes, and the DNR's comments could be provided, as well. Commissioner Thiel stated that he had concerns regarding the parking and that the applicant needed to consider planning for guest parking. Mr. Hartung stated that he will work on the issues discussed before the Planning Commission's review of his application. Planning Commission Minutes Page 6 January 26,2016 Chair Johnson stated he would like to see the applicant meet the city's ordinances, since a variance could set a precedent for future applications. Mr. Hartung asked staff how much additional parking is needed. Mr. Carlton stated 61 spaces. Mr. Hartung state that an additional 20 above ground and 40 overflow could possibly be worked out. Mr. Carlton stated that Modern Construction's conditional use permit application will be reviewed by the Planning Commission at the February 23,2016,meeting. 9. Adjournment There being no further business, the meeting of the Elk River Planning Commission adjourned at 8:17 p.m. Minutes prepared . Debbie Huebner. Tina Allard City Clerk E nson Chair,Planning Commission