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02-23-2016 PC MIN :ity of ElkMeeting of the Elk River Planning Commission River Held at the Elk River City Hall Tuesday, February 23, 2016 Members Present: Vice-Chair Konietzko, Commissioners Andrew Crook,Jeremy Johnson,Jill Larson-Vito and Brad Thiel Members Absent: Chair Eric Johnson, Commissioner Garrett Christianson Staff Present: Planning Manager Zack Carlton, Senior Planner Chris Leeseberg and Sr. Administrative Assistant Debbie Huebner I. 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 Vice Chair Konietzko. 2. Pledge of Allegiance The Pledge of Allegiance was recited. 3. Consider February 23, 2016, Planning Commission Agenda Moved by Commissioner Johnson and seconded by Commissioner Thiel to approve the February 23,2016, Planning Commission agenda with the following change: Remove Items 5.1 and 5.2—Election of Chair and Vice Chair Motion carried 5-0. Election of officers will be conducted at the March 22,2016 meeting. 4.1 Consider January 26, 2016, Planning Commission Minutes Motion by Commissioner Johnson and seconded by Commissioner Larson-Vito to approve the January 26,2016, Planning Commission meeting minutes. Motion carried 5-0. 6.1 Cornerstone Auto Elk River— 17219 U.S. Highway 10 • Conditional Use Permit for building additions—Case No. CU 16-04 Chris Leeseberg presented the staff report. Staff recommended approval of the request with the 9 conditions listed in the report. Planning Commission Minutes Page 2 February 23,2016 Vice Chair Konietzko opened the public hearing. There being no comments from the public,Vice Chair Konietzko closed the public hearing. The Planning Commission stated the proposal was consistent with previously reviewed master plans for the property and had no concerns. Motion by Commissioner Johnson and seconded by Commissioner Larson-Vito to recommend approval of the request by Cornerstone Auto Elk River for a Conditional Use Permit for building expansions with the following conditions: 1. The Conditional Use Permit shall not be recorded until all applicable conditions have been substantially completed. 2. The authorized use shall not begin until the Conditional Use Permit is recorded. 3. If the authorized use ceases for more than six months, the Conditional Use Permit shall expire. 4. The Conditional Use Permit is not a building permit and the applicant must apply for and receive approval of required building and sign permits before construction may begin. 5. The building shall meet all building and fire codes. 6. The Fire Chief shall verify the location of all fire hydrants, and may require additional hydrants necessary to preserve the health and safety of the residents. 7. All comments in the Stormwater Coordinator Memo dated February 3,2016 shall be addressed. 8. All sources of artificial lights shall be so fixed,directed,designed or sized that the minimum subtotal of their illumination will not increase the level of illumination on any nearby residential property by more than 0.1 footcandle in or within 25 feet of a dwelling or by more than 0.5 footcandle on any part of the property. 9. All comments in the Minnesota Department of Transpiration memo dated February 18,2016 shall be addressed. Motion carried 5-0. 6.2 Lake State Recycling— 19131 Industrial Blvd. NW • Conditional Use Permit to allow recycling operation, Case No. CU 16-05 Mr. Leeseberg presented the staff report. Staff recommended approval of the request with the 14 conditions listed in the report. Vice Chair Konietzko asked why staff was reducing the number of trees required by ordinance. Mr. Leeseberg stated that it is not uncommon to reduce the number of trees required for an existing business site,versus a new site. Vice Chair Konietzko opened the public hearing. Planning Commission Minutes Page 3 February 23,2016 John Rittel, applicant, 19131 Industrial Blvd. NW, stated that the area mentioned by staff has an approved surface, since crushed asphalt was put in last fall. Mr. Leeseberg noted that Condition #9 addresses this issue if the applicant wished to expand into the grassy area. Motion by Commissioner Johnson and seconded by Commissioner Crook to recommend approval of the request by Lake State Recycling for a Conditional Use Permit to allow a recycling operation at 19131 Industrial Blvd. with the following conditions: 1. The Conditional Use Permit shall not be recorded until all applicable conditions have been substantially completed. 2. The authorized use shall not begin until the Conditional Use Permit is recorded. 3. If the authorized use ceases for more than six months,the Conditional Use Permit shall expire. 4. The Conditional Use Permit is not a building permit and the applicant must apply for and receive approval of required building and sign permits before construction may begin. 5. The building shall meet all building and fire codes. 6. Hours of operation shall be limited to 8 a.m. -10 p.m. Monday through Friday. 7. All product break down must occur within the building. 8. The outdoor storage area shall be completely enclosed with a six foot tall privacy fence. Chain link fencing with vinyl slats is not permitted. 9. There shall be no storage of any materials and/or products on the property outside of the outdoor storage area. 10. Materials shall not be stacked higher than six (6) feet in the outdoor storage area unless in an enclosed dry van. 11. If the outdoor storage area is to be increased more than 10,000 square feet, an amendment to the conditional use permit shall be required. 12. No more than three dry vans shall be used for storage. 13. A landscape plan showing the 15 trees shall be provided to include in the City Council staff report. 14. All sources of artificial lights shall be so fixed,directed, designed or sized that the minimum subtotal of their illumination will not increase the level of illumination on any nearby residential property by more than 0.1 footcandle in or within 25 feet of a dwelling or by more than 0.5 footcandle on any part of the property. Motion carried 5-0. 6.3 Modern Construction of Minnesota— Lot 4, Block I, Mississippi Ridge 2nd • Conditional Use Permit to establish Planned Unit Development for multi-use building— Case No. CU 16-02 Zack Carlton presented the staff report. He stated that staff has concerns regarding parking, storm water runoff, the Wild&Scenic ordinance requirements. He noted that the Parks and Recreation Commission determined that the benefit of the land exchange proposed by the applicant was not of equal benefit,and that a larger area further to the south has been identified as a better location for adding bluff lands to the park system. Mr. Carlton stated Planning Commission Minutes Page 4 February 23,2016 that the Parks Commission desired a trail and easement along the river at this location. Mr. Carlton stated that staff was recommending denial of the request,but that the Planning Commission could continue the request for another month to address some of the issues which were raised. Commissioner Larson-Vito asked if the DNR letter is binding for the city. Mr. Carlton stated no, that their recommendations should be taken into consideration, similar to the Planning Commission's recommendations,but they are not binding. Commissioner Johnson asked how this project compared to The Bluffs regarding height and setbacks. Mr. Carlton stated that The Bluffs has a zero setback,but is not comparable, since The Bluffs building is located in a historic downtown setting. He noted the DNR typically recommends approval of redevelopment projects within existing downtown or historic areas. He stated that the current standards would apply for new development in an open area. Edward Retel, 7171 Yale Street NW,Mississippi Ridge Homeowner's Association representative,asked how or why does the applicant show acquiring land from the city or the homeowners'association,if they are not sure if they would be willing to give it up. He stated it seemed strange to base a proposal on land he does not own. Mr. Carlton explained where the property Mr. Retel was referring to was located, stating the applicant proposes 40 parking stalls in this area as public or private for the rest of the retail needs. He also clarified that the city is not proposing to acquire the land,but that the property was identified on plans submitted by the applicant,and that it would be the applicant's responsibility to negotiate with adjacent property owners. Jesse Hartung, 633 Main Street, Granite Shores, stated that the drawing is just a proposal at this time and acquisition would need to be negotiated. He stated that it appears parking is the biggest issue. He stated they are currently at 219 stalls and would be well over the requirement,including on street parking. He stated that that would equate to 2 stalls per residential unit and 4 stalls each for the commercial units. He noted that Granite Shores is at 1.75 stalls per unit. Mr. Hartung stated that in touring other similar facilities, only 1 space per tenant is required. He stated that Elk River Food Co-op is interested in leasing a portion of the commercial space and has stated there would be ample parking for their business. Mr. Hartung stated the his engineers have calculated that the Yale Street extension currently has adequate stormwater capacity, and agreed that there would be a need for additional storm water retention. Mr. Hartung stated that he felt the DNR was a little misled regarding the bluff setback, since there is at least a 10-foot setback with the revised plan. Mr. Carlton stated that the DNR reviewed the application based on the original site plan. Mr. Hartung stated he found it discouraging that the Parks and Recreation Commission was not interested in the land swap for a park,but he was willing to provide the trail connection and easement they requested. Discussion followed regarding the storm water issue. Mr. Hartung stated he felt the benefits and increased tax base this project would create outweighed any costs to create adequate storm water retention. Planning Commission Minutes Page 5 February 23,2016 Discussion of the "green"rooftop proposal followed. Mr. Hartung stated that rainwater will be used on site and rainwater would be collected from any hard surfaces and used for irrigation. Vice Chair Konietzko asked if the project could be completed in phases. Mr. Hartung stated that he felt the stormwater for his site and the Yale Street extension could be contained and handled by the existing stormwater. Mr. Carlton stated that he cannot verify whether or not that is correct. Mr. Hartung stated that his engineers used the original documents for the Yale Street extension to do their calculations. He stated that even though the building is large, the green roof has not been taken into account. Mr. Carlton stated that the calculations used by the applicant's engineer were done under different requirements than are used currently. He explained that the storm water runoff cannot exceed the current conditions. He stated he is not saying the applicant's proposed plan cannot handle the stormwater,but staff does not know at this time. He stated that if the Planning Commission moves forward with a recommendation for approval, the issue can be looked at further. Mr. Carlton stated that the stormwater study was done as a comprehensive project,and not intended to be completed in phases. Mr. Carlton stated that the parking at Granite Shores is not a true comparison, since there are city-owned parking lots the residents and businesses of Granite Shores can utilize. He also noted that Elk River is more of a bedroom community,where people need their cars to drive to get to work. Vice Chair Konietzko asked if the 2.0 parking stalls per unit was based on the hope that the applicant could acquire the additional property. Mr. Hartung stated yes,but that if that was not possible, they would have to reconfigure the layout and the number of stalls may go down to 1.92. He noted that none of these numbers figure in the on street parking,which would be in addition to that provided on site. Commissioner Crook asked how much parking the Co-op is proposing to need. Mr. Hartung stated that the proposed restaurant will be small and they felt 25 spaces would be adequate. Mr. Carlton stated that the ordinance requires 45 spaces. Mr. Hartung stated that with 1.34 stalls available at Granite Shores,they have more parking than they need. He stated that the apartments are predominantly 1-bedrooms and will likely have 1 car per apartment. He stated that he felt that the future of transportation was that cars are on the way out, and he plans to implement the car-to-go concept,where residents could rent one of several cars to use when needed. Commissioner Thiel stated that he was reluctant to dismiss the parking issue. He stated he was not in favor of the proposal due to the issues of parking, stormwater, and the DNR's concerns. Commissioner Larson-Vito stated that having restaurants that you can walk to was a concern when she lived in an apartment. Planning Commission Minutes Page 6 February 23,2016 Mr. Hartung stated that the Focused Area Study (FAST)identified this area for high density residential with 3, 4 or 5 story residential buildings. He felt this proposal would fit in perfectly for what was proposed in the plan. Mr. Hartung stated that he lives and works in Elk River,but the project cannot be scaled back, and if it will not work on this site,he would be looking at other sites. Vice Chair Konietzko stated that he wants the project here,and is hopeful they can find a way to make it fit. Commissioner Johnson stated that the issues need to be nailed down prior to moving forward with this project. He stated he was not comfortable making a decision to approve when there are questions remaining, such as the land acquisition from the homeowner's association. Mr. Hartung stated that his goal is to get a shovel in the ground and that if the project is going to get hung up with the DNR,he is looking at other sites outside of the city to locate his project. He stated that his engineer has the correct storm water calculations and the project will not have the impact city staff is concerned with. He stated that he cannot do any more with the parking. Mr. Hartung asked that the Planning Commission make a recommendation and move the application along to the City Council. Motion by Commissioner Johnson and seconded by Commissioner Larson-Vito to recommend denial of the request by Modern Construction of Minnesota for a Conditional Use Permit to establish a Planned Unit Development for a multi-use building. Motion carried 4-1. Commissioner Crook opposed. Mr. Carlton stated that the DNR would like to do a site visit so that they have a better understanding of what is being proposed, and where the bluff line actually is located. Commissioner Crook stated that he believed the issues can be worked out and that he felt the parking was adequate. 6.4 Briggs Companies— 17432 Zane St NW • Interim Use Permit for Extended Stay Hotel, Case No. CU 16-07 Mr. Carlton presented the staff report. Mr. Carlton reviewed the nine conditions which must be met in order to allow the interim use requested. Staff recommended denial of the request based on the finding that conditions #4 and#7 cannot be met. Commissioner Larson-Vito stated that it is her understanding the city oversees rental licenses, and asked if the Minnesota Department of Health oversees extended stay motels and hotels. Mr. Carlton stated yes, and that they license the facilities. Commissioner Johnson stated that he would abstain from discussion and voting on this issue due to a potential conflict of interest. Vice Chair Konietzko opened the public hearing. Planning Commission Minutes • P 7 February 23,2016 Pat Briggs,applicant, 19021 Freeport St. NW, stated he was present with his associate,Jim Thears. Mr. Briggs discussed existing business projects he has completed in Zimmerman, Big Lake,and Elk River. Mr. Briggs discussed his plan to expand the Elk River Lodges site to include 60 high density residential units by acquiring property to the south of the existing site. Mr. Briggs discussed his difficulty moving forward with his plans when the Saxon site sale fell through. He stated that he could covert the building to apartments without expanding,but it would not be the project he has envisioned. He stated he would like to do an all"green"building similar to what Modern Construction was proposing. Mr. Briggs discussed his request for a five-year Interim Use Permit (IUP), stating that it would take at least a year to obtain financing, complete the land acquisition and then he would need to hire an architect and develop construction plans. He stated that he would be able to provide assurance of the termination of the IUP,by basing certain events on a particular date. Commissioner Larson-Vito asked if Mr. Briggs would be agreeable to a condition that the IUP could not be extended. Mr. Briggs stated yes. Vice Chair Konietzko asked if there could be some type of benchmarks put in place to assure that plans were moving along. Mr. Briggs stated that he has already paid the rental license unit fees to the city. Commissioner Larson-Vito asked if there was a lodging license required,as well. Mr. Briggs stated that he was told the rental fees and rental licensing was processed by the city. Commissioner Larson-Vito stated that she would like some sort of proof that a lodging license from the State was not required. Mr. Carlton stated that he would obtain that verification. There being no further public comment,Vice Chair Konietzko closed the public hearing. Commissioner Larson-Vito stated that she was open to approving the IUP,with specific benchmarks in place to ensure that the project was moving forward. She also stated she would like clarification on whether or not there are State licensing requirements or who has licensing jurisdiction. Vice Chair Konietzko concurred. Commissioner Crook stated he would also like to see benchmarks in place,along the 5-year IUP term. Commissioner Theil stated he was not sure a 5-year term for the IUP was appropriate, since the applicant has already been operating for a while. Vice Chair Konietzko stated he was comfortable with the time line, since projects like this do take time. Commissioner Crook asked the applicant where he was at in the process. Mr. Briggs stated that his contracts for option to purchase the property to the south were about to expire, so he would have to go back and re-negotiate new contracts to acquire the property. He stated that three years would not be enough time. Commissioner Larson-Vito stated that the applicant needs to stay in communication with staff during the IUP term,regarding the benchmarks put in place. Mr. Briggs noted that the Planning Commission Minutes Page 8 February 23,2016 city has the option to remedy the situation if he does not comply by shutting down his business. Commissioner Thiel suggested some type of cash escrow be required. Mr. Carlton stated that a monetary value could be set in the event conditions are not met. Commissioner Crook asked what would be a reasonable amount. Mr. Briggs stated that the occupants in the building have 30-day contracts and if the IUP expired without a project underway,the city has the effective remedy to shut him down. He stated that he does not have the funds to put up an escrow, since the improvements he made to bring the property in compliance drained his cash flow. He stated that he currently had to finance operating capital so that he could move forward with his plans. He stated that possible benchmarks could be 1) a redevelopment application submitted in 12 months,and 2) application for a building permit in 36 months. He stated that he has already submitted a survey,and paid the rental fees. He stated he did not want to set up benchmarks he can't meet. He stated he was willing to waive any future opportunity to request an extension of the IUP. Discussion followed regarding extensions for other Interim Use Permits in the city. Mr. Leeseberg noted that River of Life withdrew their application for an extension of their IUP. He also noted that a condition was placed on the most recent LeFebvre IUP, to not allow future extensions. Motion by Commissioner Larson-Vito and seconded by Commissioner Crook to recommend approval of the request by Briggs Companies for an Interim Use Permit for an extended stay motel,with the following conditions: 1. Licensing requirements/jurisdiction for city and state need to be determined. 2. A schedule is to be determined, listing benchmarks of progress toward 5-year plan of high density residential project. Staff and the applicant will agree on terms. 3. No extensions of the 5-year IUP will be allowed). Motion carried 3-1-1. Commissioner Thiel opposed. Commissioner Johnson abstained. 6.5 City of Elk River— Lots I and 2, Block I, Fox Haven Commercial Addition • Rezone property from C-4 Community Commercial to C-3 Highway Commercial — Case No. ZC 16-03 • Conditional Use Permit for auto body repair facility, Case No. CU 16-03 - Withdrawn Mr.Leeseberg presented the staff report. Vice Chair Konietzko opened the public hearing. Rick Kubicka, 18614 Lander Dr. NW, stated that he lives across the road from the 2 lots under discussion. He expressed his concern with excessive traffic and safety of the children getting on the bus at this location. He asked staff what additional uses would be permitted with the C3 zone change. Mr. Leeseberg reviewed the list of permitted and conditional uses Planning Commission Minutes Page 9 February 23,2016 in the C3 zoning district,and provided Mr. Kubicka with the list. Mr. Leeseberg explained that if a request came in for a use that was a conditional use,the property owners within 350 would be notified of the public hearing. He added that if the use proposed were a permitted use,it would only require staff review and approval. There being no further public comment,Vice Chair Konietzko closed the public hearing. Motion by Commissioner Larson-Vito and seconded by Commissioner Johnson to recommend approval of the request by the City of Elk River to rezone Lots 1 and 2, Block 1,Fox Haven Commercial Addition,from C4 Community Commercial to C3 Highway Commercial, based on the following findings: 1. The rezoning is consistent with the comprehensive plan. 2. Existing conditions in the area are commercial. The motion carried 5-0. 6.6 Rick Haugland - 21475 Highway 169 NW Rezone property from CRT Commercial Reserve Transition to C3 Highway Commercial — Case No. ZC 16-01 Mr. Leeseberg explained that the applicant has withdrawn their conditional use permit application and will reapply for the conditional use permit. Vice Chair Konietzko opened the public hearing. There being no public comment,Vice Chair Konietzko closed the public hearing. Mr. Leeseberg noted that when the revised applications come in, the requests will be re- advertised and public hearing notices sent out. 7. General Business Mr. Carlton stated that has been Commissioner Jeremy Johnson's last Planning Commission meeting. He thanked Commissioner Johnson for his years of service on the Commission. 8.1 City Council Liaison Update Councilmember Burandt stated that interviews for various boards and commissions positions were completed. She noted that Eric Johnson was reappointed to the Planning Commission and a new commissioner,Mike Nicholas,was appointed,as well. 9. Adjournment There being no further business, the meeting of the Elk River Planning Commission adjourned at 8:52 p.m. Planning Commission Minutes Page 10 February 23,2016 Minutes prepared b Des bie Huebner. rr "A" eii — a Allard City Cle / I,,k Konietzko ice Chair,Pla '►g Co ' 'ssion