6.2.a PCSR 04-28-2020Request for Action
To Item Number
Planning Commission 6.2a
Agenda Section Meeting Date Prepared by
Public Hearings April 28, 2020 Chris Leeseberg, Senior Planner
Item Description Reviewed by
CommonBond Elk River Housing Limited Zack Carlton, Planning Manager
Partnership – 19522 Holt St. NW
Reviewed by
Land Use Amendment from Highway Business to
High Density Residential, Case No. LU 20-02
Action Requested
Recommend, by motion, amending the Comprehensive Plan to
change the land use from Highway Business to Residential.
Background/Discussion
The subject property, located southwest of the intersection of
th
Highway 169 and 197 Avenue, is currently zoned Planned Unit
Development (PUD) and has an underlying Land Use of Highway
Business.
The applicant is proposing a 60-unit multi-family residential
apartment building in the Elk Ridge Center commercial
development. In order to compete this project, the applicant will
need an amendment (LU 20-02) to the Land Use plan, need to plat
(P 20-05) the property, and receive a Conditional Use Permit (CU
20-07) to establish a residential PUD.
The underlying land use must support the proposed residential use,
and an amendment to the Comprehensive Plan from Highway
Commercial to Residential is required. The commercial
development is surrounded by single-family homes and a religious
institution.
The city has limited opportunities for developable commercial land
near the Highway 169 corridor and this project, if approved, will
impact that limited inventory.
Excerpt from the Comprehensive Plan
The Highway Business land use ranges from moderate to high intensity forms of commercial development in Elk River.
Businesses in this category may be the largest both in terms of size and traffic generation while also providing services and
convenience types of business. Market orientation tends to be regional in nature. Development orientation tends to be toward
regional highways. Future Highway Business developments should be located within the Urban Service Boundary and
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional
service, and community engagement that encourages and inspires prosperity
adjacent to regional highways with both visibility and access. Examples of Highway Business uses include discount retailers,
grocery, restaurants, automotive sales and service, general merchandise, and professional services.
The Highway Business land use follows the Highway 169 and Highway 10 corridors. An important planning issue is
providing options to accommodate increased demand for retail and service opportunities that meet access, visibility, and size
requirements.
The City Council, in 2019, reviewed a concept plan for this project and generally supported the project
through a resolution that was used in an application for state funding. The resolution did not bind the
city to future approvals of the project but outlined the process for review.
Public Hearing
Staff received a letter of support (attached) and two phone calls. One business owner wanted to make
sure the project followed the same stringent design standards their business was required to and was
generally opposed to commercial land being removed for a residential use. An adjacent homeowner
expressed concerns about lighting on the side adjacent to the single-family homes.
Financial Impact
None
Statutory Review Period
Per State Statute §15.99, the required 60-day review period ends on June 23, 2020. The applicant received
a 60-day extension letter.
Council Meeting
If acted on, this item will go to the May 18, 2020, City Council meeting.
Attachments
Location Map
Applicant’s Narrative
Existing/Proposed Exhibit
Support Email received April 16, 2020
CommonBond Communities is pleased to propose Elk Ridge Lodge – a new construction, affordable
apartment building located at 19522 Holt Street Northwest within the existing Elk Ridge Shopping Center.
The proposed project includes 60 apartments with 120 stalls of surface parking. The property will have on-
site management and maintenance staff and will include amenities such as on-site washers/driers, a high-
quality exterior play area, oversized closets and on-site storage. The building itself will be attractive and
finished with high-quality exterior materials as further described below.
The location is highly desirable and supportive to CommonBond’s planned development as it is near
numerous services, amenities and jobs, all of which will be utilized by our future residents. The location of
these services in the immediate of vicinity of the site, including groceries and child care, makes the location
absolutely stellar for multifamily housing. This addition of housing to the property will also enhance the
vitality of the existing commercial uses, by adding users and developing one of the last outlots for this
shopping center.
We believe multifamily represents the highest and best use for the site, especially given it has been marketed
by the current owner for a number of years without another viable development opportunity. We further
believe multifamily will continue to be the highest and best use after the planned reconstruction of nearby
Highway 169 interchanges. Please note that the property has been actively listed for sale for a number of
years by the existing, experienced owner/developer, which is Hempel Companies.
Elk Ridge Lodge will add users and a visually prominent and attractive building to a parcel that has not until
now attracted a viable development proposal. The proposed circulation contemplates directing traffic to the
southern portion of the site, taking advantage of a less-utilized point of access from Holt Street, mitigating
impacts to existing ingress/egress on the northern end of the site. Further, access will not occur from Irving
Street Northwest, ensuring neighboring uses are not impacted by the proposed project.
Additionally, the development will build upon the attractive aesthetic already in place at the shopping center,
with following elements included: faux stone and brick masonry, fiber cement board siding, and high-quality
landscaping. The design intent is to match and build upon the existing aesthetic of the Elk Ridge Lodge
Shopping Center and its design guidelines.
Elk Ridge Lodge will be owned and managed by CommonBond. CommonBond is a Saint Paul-based non-
profit affordable housing provider founded in 1971. CommonBond owns and operates properties in
Minnesota, Wisconsin and Iowa, with our largest presence being in the Twin Cities metro. The following are
several hallmarks of CommonBond’s ownership and management philosophy:
• Long-term owner: CommonBond has sold just one property in its nearly 50 years of existence,
demonstrating deep investment in long-lasting relationships with the communities in which it works.
Such an ownership strategy also informs our high-quality design and construction standards;
• Attentive, Resident-Focused Manager: CommonBond manages all 100-plus properties that it owns,
providing consistency and continuity of service for its residents, neighbors and the community as a
whole. Such a management philosophy leads to us to have extremely high resident satisfaction rates
and to be invited back into communities for successive developments.
The project is been awarded its required financing is expected to close and commence construction in fall
2020, a with a project completion approximately 12 months thereafter.
The following addresses specific questions required of the Conditional Use Permit narrative:
1. What is being proposed?
The project will include a new construction, 60-unit apartment building with 120 surface parking stalls.
2. How is the request consistent with the City of Elk River Comprehensive Plan?
The proposed project will require an amendment to the Comprehensive Plan. As described above, the project is located
in a commercially zoned area, but the area has failed to garner any viable commercial proposals after many years of
marketing and development proposals by its owner/broker, Hempel Properties. We believe multi-family housing is the
highest and best use of the property.
3. Hours of operation.
As the proposed project is residential, the property will be in continuous use. The rental office will establish regular
business hours at a later date. Typical business hours are weekdays and some evenings and weekends.
4. Number of employees.
The proposed project will have a site manager, site maintenance technician and site caretaker.
5. Number of parking stalls, existing and additional.
The proposed project will have 120 (2/unit) new surface parking stalls (there are no existing parking stalls). This
deviates from the required parking of 150 spaces (2.5/unit) and none of the stalls are proposed to be enclosed.
CommonBond has developed similar sites and found that this quantity and type of parking works well for our
residents. A small portion of the parking (17 square feet) will be within the 25’ foot buffer for the stormwater pond.
The pond has a retaining wall at this location, so there will not be a direct hydraulic connection between the parking
and the pond, and we propose planting a dense groundcover between the parking lot and the stormwater pond.
6. Is there proposed screening of the site.
There will be a trees along the east side of the building to provide screening from Holt Street. There is existing
vegetative screening on the west side of the side along Irving Street. There is existing vegetative screening and a berm
along the south edge of the site between the proposed building and residential area.
7. Proposed building materials.
The proposed building materials comply with the design standards. The building will have a continuous and consistent
elevation, that uses a variation of materials, colors, and textures in combination to provide visually interesting
appearance. The building materials will also be consistent with other buildings in the area.
8. Signage.
There will be one monument sign that will be 5’- 2” long x 1’- 0” deep x 6’- 2” tall. It will be located at the entrance
to the parking lot. The sign will be an illuminated and painted aluminum cabinet that sits atop masonry to match the
building.
9. Is there outdoor storage?
The proposed project will not include any outdoor storage.
The following addresses specific questions required of the Land Use Amendment Applicaiton
narrative:
1. Detailed description/scope of the project.
The proposed project will include a new construction, 60-unit apartment building with 120 surface parking stalls built
on an existing outlot of the Elk Ridge Shopping Center. The building will be three stories in height plus a pitched
roof. The building’s access will be provided by existing connections from the Elk Ridge Shopping Center and will
additionally include a landscaped trail connection to the existing trail on Irving Street.
2. What is being proposed?
The project will include a new construction, 60-unit apartment building with 120 surface parking stalls.
3. What are the reasons/purposes for the proposed Land Use Change?
The proposed project is located in a commercially-zoned area, part of the existing Elk Ridge Shopping Center. The
proposed project will be residential in use, therefore requiring a land use change.
4. What has changed to warrant the Land Use Change?
Market conditions no longer make a commercial use feasible at this location. The project location is one of the last
developable outlots in the Elk Ridge Shopping Center and was initially conceived to be junior box retailer or pad retail
development. After many years of active marketing by the property owner, Hempel Companies, no viable commercial
projects emerged. Additionally, the location is highly conducive to residential use, which will further make the existing
commercial uses viable by adding additional users.
5. How is the request consistent with the City of Elk River Comprehensive Plan?
The proposed project will require an amendment to the Comprehensive Plan. As described above, the project is located
in a commercially zoned area, but the area has failed to garner any viable commercial proposals after many years of
marketing and development proposals by its owner/broker, Hempel Properties. We believe multi-family housing is the
highest and best use of the property.
6. How is it compatible with surrounding properties.
The proposed project is compatible with surrounding properties by integrating into existing access through the site, by
complimenting and building upon the existing design aesthetic of the site, by not requiring any shared parking from
other uses by adequately parking on-site and by developing a landscaped trail connection to the existing trail along
Irving Street.
7. What are the benefits to the City.
The proposed project will benefit the city by putting vacant land into a productive, tax paying use; by enhancing the
value of neighboring commercial uses by adding new site users; and by adding to much-needed affordable housing supply
for the community for which there is a great shortage.
The following addresses specific questions required of the Easement Vacation narrative:
1. Detailed description/scope of the project.
The proposed project will include a new construction, 60-unit apartment building with 120 surface parking stalls built
on an existing outlot of the Elk Ridge Shopping Center. The building will be three stories in height plus a pitched
roof. The building’s access will be provided by existing connections from the Elk Ridge Shopping Center and will
additionally include a landscaped trail connection to existing trail along Irving Street.
2. What is the purpose of the Easement Vacation? What is being proposed?
The easements to be vacated are drainage and utility easements. The subject easements were entered into when the
project was initially conceived as a junior box retailer or pad retail development. Now that the project includes a
multifamily use, these easements locations are no longer appropriate.
3. How is the request consistent with the City of Elk River Comprehensive Plan?
The proposed project will require an amendment to the Comprehensive Plan. As described above, the project is located
in a commercially zoned area, but the area has failed to garner any viable commercial proposals after many years of
marketing and development proposals by its owner/broker, Hempel Properties. We believe multi-family housing is the
highest and best use of the property.
4. What has changed to warrant the Easement Vacation?
The subject easements were entered into when the project was initially conceived as a junior box retailer or pad retail
development. Now that the project includes a multifamily use, these easements locations are no longer appropriate.
5. How is it compatible with surrounding properties.
The proposed project is compatible with surrounding properties by integrating into existing access through the site, by
complimenting and building upon the existing design aesthetic of the site, by not requiring any shared parking from
other uses by adequately parking on-site and by developing a landscaped trail connection to existing trail along Irving
Street.
6. The DNR must be notified and provide comment if adjacent to water.
Not applicable.
7. What are the benefits to the City.
The proposed project will benefit the city by putting vacant land into a productive, tax paying use; by enhancing the
value of neighboring commercial uses by adding new site users; and by adding to much-needed affordable housing supply
for the community for which there is a great shortage.
ST ANDREWST ANDREW
April 16, 2020
City of Elk River
13065 Orono Parkway
Elk River, MN 55330
Attn: City Councilmembers
RE: Elk Ridge Lodge
Letter of Support
Dear Planning Commission Members,
I am providing this statement in regards to the land use approvals requested by CommonBond related to Elk Ridge
Lodge at the Elk Ridge Shopping Center. CommonBond has a purchase agreement with us for this site and is proposing
to develop an approximately 60-unit, new construction multifamily apartment building.
We are eager to work with CommonBond on this project. I understand that some may have concerns about rezoning
this site from commercial to residential, but in our opinion, the site’s highest and best use is fulfilled by CommonBond’s
proposal. We say this with great confidence, as our firm has developed properties across all commercial product types
in our nearly 20 years of existence. Simply put, we would not be looking to sell this property if we saw a demand for a
commercially-oriented use – as we would develop it ourselves. We shared this feedback with the City Council when the
project was first reviewed in May 2019 and continue to feel this way.
We have marketed the site for 15 years for a variety of different commercial uses including junior box retail and medical
office, but failed to receive any feasible interest or purchase offers. We believe the market is clearly indicating that a
commercial use for the site is not likely any time in the near or distant future. We also believe that even after the
planned reconstruction of Highway 169 intersections, this will continue to be the case. This is because as the site is
tucked so far back from the highway, it does not have sufficient visibility to garner commercial/retail interest. The
remaining developable land in the shopping center, totaling approximately 3.49 acres, is a far better candidate for
commercial development as it is much closer to and more visible from the highway and we will continue to pursue those
types of users earnestly.
We also consider CommonBond’s proposed use to be highly additive to our existing property as it will add a highly
visible, multi-story structure with a design consistent to the already developed parcels, providing the area greater
visibility and a stronger sense of place. I know that CommonBond has made design enhancements since its initial
application to strengthen the visual connection and consistency with the neighboring buildings. The project will help
provide the live-work-play element that is so critical to successful mixed-use developments. The proposed
Commonbond development will also be complimentary and add residents and potential customers to the site, which will
make the current businesses that much more viable and sustainable. Finally, we believe the development will also be
accomplished in manner that improves circulation within the existing drive network of the site.
Thank you for the opportunity to provide our feedback for your consideration. Please feel free to contact me with any
questions at ben@hempelcompanies.com or 612-355-2608.
Sincerely,
Ben Krsnak
Hempel Companies
28 April 2020 Via Email Only
City of Elk River
13065 Orono Parkway
Elk River, MN 55330
Attn: Planning Commission Members
RE: Elk Ridge Lodge Apartments
Information for April 28, 2020 Planning Commission Meeting
Dear Planning Commission Members,
With this letter I am pleased to provide additional information regarding our proposed Elk Ridge Lodge
Apartments development, located at 19522 Holt Street Northwest. We are providing this information in
writing to ensure our perspective is provided as the electronic format required due to Covid-19 prohibits
the normal Planning Commission conversations. We sincerely welcome feedback from Commission
Members, staff and neighbors; my contact information is provided below.
Introduction to CommonBond and Project Overview
CommonBond Communities is a Saint Paul-based nonprofit affordable housing developer and operator.
We were founded in 1971 and currently own and operate more than 7,000 homes in Minnesota,
Wisconsin and Iowa. Two of the hallmarks to our approach and success have been:
1. Long-term Ownership: In our nearly 50 years of existence, we have only sold one property.
2. Self-Management: We manage all of the properties we own, ensuring direct accountability and
responsiveness to the communities in which we work.
These attributes also make us great neighbors and community stakeholders, which is why we are so
often invited back by cities as partners to create more high-quality housing developments. We are
proud of our reputation and look forward to bringing our community-focused approach to the City of Elk
River with our proposed project.
We believe our proposal reflects significant additional value and vitality for this area as we will transition
a vacant parcel into a productive use. The inclusion of a residential use into the shopping center will add
new life to the area, and remove an unsightly vacant lot. We understand there has been some concern
regarding changing the land use from commercial to residential. An important consideration is
1080 Montreal Ave
Saint Paul, MN 55116
commonbond.org
www.commonbond.org
28 April 2020
Page 2 of 3
the fact that the property has been marketed as commercial for 10 years-plus without a viable proposal.
I would reference the letter of support provided by Hempel Companies, the shopping center manager
and land owner, in support of this assertion. Additionally, there is a larger commercial lot available
within the shopping center that will remain available for commercial development. This lot is
considered a more prime location as it benefits from better visibility from Highway 169, and is closer to
the other shopping center retailers. Hempel continues to market this site for commercial uses.
Additionally, the proposal will allow the City to provide much-needed additional affordable housing
opportunities. The “Comprehensive Housing Needs Analysis” commissioned by the City in December
2015 recommended the development of 120-140 new affordable housing units. This was based off of
an extremely tight market, with just 1.3% of affordable rental units being vacant as of the report date.
Our more recent market studies have affirmed this high demand with current data. Finally, the
proposed affordable housing provided by this project is supported by the City’s Comprehensive Plan,
which states, “Affordable housing is important to a strong economy and a healthy community…” and
“…the lack of affordable housing [for] people of all ages and incomes causes families stress, dampens
productivity and stifles job growth.”
Staff Comments
We concur and agree with the staff comments found in the report, including the addition of seven more
trees and the addition of site fencing. We will also continue to work with staff to ensure that the final
architectural design complements the existing shopping center design guidelines. We appreciate staff’s
suggestions and feedback to-date and their recommendation of approval for our proposal.
Public Comments
In reading the staff report and attached written public comments, we observed the following themes:
traffic, lighting and design. We appreciate these important concerns, and have worked to address them
in our development project. Our specific responses to each of these are provided below.
• Traffic: We recognize there is concern in transitioning the current vacant lot to a developed use of
multifamily housing.
o As you know, the parcel is currently zoned commercial, making a commercial/retail
development a permitted use for this site. Such a use would result in far more vehicular
traffic than that of our proposed multifamily apartment property. In fact, the staff report
concludes a commercial use at this property would generate 1,000-2,000 trips per day,
versus the 360 anticipated from our proposed building.
o The site design will route all traffic – residents, visitors and service vehicles – to the existing
access off of Holt Street Northwest, not Irving Circle Northwest. As such, impacts on
surrounding residential streets are expected to be de minimis, if any. Further, impacts on
Holt Street Northwest will be moderate as residents will come to the site from the north and
south, and not just one direction.
28 April 2020
Page 3 of 3
• Lighting: We recognize the one concern raised regarding lighting potentially affecting a neighboring
home.
o The orientation of the parking lot – on the far side of the site and screened by the proposed
building – will, to a great extent, mitigate any lighting impacts.
o The additional site fencing and landscaping requested by staff will further mitigate any
lighting impacts.
o We are happy to work with staff to provide a photometric study to further refine the design
and ensure any site lighting does not present a nuisance to the neighboring property owner.
• Design: One respondent provided feedback on the design of the property, wanting to ensure the
design quality and aesthetic matched the existing properties in the shopping center.
o Since this comment was made, our design has significantly changed, including the addition
of a substantial amount of cultured stone, architectural millwork and other details. While
we believe these changes are responsive to this comment, we will continue to work with
staff to meet the design guidance of the area.
We believe our proposal, which has secured highly competitive financing, represents a very unique and
desirable opportunity for the City of Elk River. All of us at CommonBond take pride in, and are
committed to, being part of the community and good neighbors. And it’s important to us that those
who choose to live in a CommonBond housing community feel good about their choice. We are
confident that we will provide quality homes, and be long-term, responsive and friendly neighbors.
We respectfully request the Planning Commission’s recommendation for approval by the City Council.
Please contact me with any questions or concerns at 651-265-4735 or andy.hughes@commonbond.org.
Sincerely,
Andrew Hughes
Director of Acquisitions & Development
CommonBond Communities
Stable Homes. Strong Futures. Vibrant Communities.
An equal opportunity & affirmative action organization