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6.8. SR 06-18-2007 REQUEST FOR ACTION To City Council Agenda Section Communi Develo ment Item Description Discussion Regarding Commercial Recreation Uses in the Business Park Meeting Date une 18, 2007 Item Number 6.8. Prepared by erem Barnhart, Plannin Reviewed by Scott Clark, Community Development Director Reviewed by Action Requested Direction to authorize City Attorney review, finalize draft, and draft resolution regarding amendments to the zoning ordinance and zoning definitions. Background/Discussion Staff has received a Conditional Use Permit (CUP) request for an existing gymnastics/ dance studio to relocate to the Business Park (BP) Zoning District. The use, currently in the C-l zoning district, is a conditional use as a Commercial Recreational use. Commercial Recreation is not a permitted or conditional use in the BP Zoning district. The applicant believes that their use is a vocation, technical, or trade school, a conditional use permit in the BP, but not permitted in the C-l zoning district. A brief history related to this request: April 1 0, 2006, the applicant approached the City Council with a desire to put a Dance Studio in the Business Park zoning district. The Council directed staff to develop options for expansion of the use into other areas of the community. The project was known as the "Briggs Proposal". May 8, 2006, community development staff discussed the issues, including commercial and industrial inventory, economic policy goals, and recommended the Planning Commission review revisions to the ordinance. The applicant did not attend this discussion, and did not contact staff until March 2007. March 21, 2007, staff received a building permit to fInish space in the BP zoning district. Staff informed the applicant, Pat Briggs, that staff was unable to issue the permit for a use that is not a permitted or conditional use. May 8, 2007, Staff initiated an ordinance amendment, reviewed by the Planning Commission. The amendment suggested Commercial Recreation as a permitted use in the Business Park zoning district. After discussion, the Commission requested additional information and the tabled the item until their workshop. May 29,2007, Staff received the CUP application for a Dance studio. Although the applicant does not state which use they believe they are, it is understood that they were applying under a vocation, technical, or trade school based on their arguments that they are teaching a skill and that is the closest use for consideration. After discussing it with the City Attorney, staff returned the application because the City could not act on it; interpreting a dance studio as not a use consistent with a technical, vocational, or trade school. June 1,2007, the applicant stated their intent to appeal. Both the City Attorney and staff have instructed him on the formal procedure to appeal; to date, no formal appeal has been received. May 22, 2007 PC workshop, the Commission directed staff to expand the definitions, to better reflect the use and placed various "recreation" uses in the C-1 and C-3 zoning districts. June 12,2007 PC meeting, after holding a second public hearing, the Commission is forwarding a recommendation below. Attachments · CC April 1 0, 2006 minute excerpt · CC May 8, 2006 minute excerpt · PC May 8, 2007 minutes · Letter to Briggs RE building permit March 27, 2007 · Letter to Pitts RE CUP application May 31, 2007 Overviewl Analysis Of the existing definitions, a dance studio/ gymnastics facility best fits as Commercial Recreation. However, Commercial Recreation could be applied to a wide range of uses, many of which may not be appropriate in all districts. Commercial Recreation (driving ranges, soccer complexes, volleyball leagues, etc) is currently permitted in the C-1, C-3, and unplatted 1-1 zoning district. During their meetings in May and June 12th, the Planning Commission discussed the appropriateness of these uses and after breaking down Commercial Recreation into three categories, delegated them to zones they felt most appropriate, based on access needs, intensity of use and adjacent uses, and building needs. After much discussion, the Planning Commission is recommending three new definitions and amending a fourth. The Commission also recommends allowing certain "entertainment" uses in the Commercial zoning districts, but preserve the industrial for industrial uses. There was concern that larger entertainment uses shift the character of the district and development from its intended use. New text proposed to the existing ordinance is underlined, and text from an existing ordinance to be deleted would be struck through. Proposed Ordnance amendments: Sec 30-1, Definitions Prysical Recreation or Training. Means a business that provides physical exercise, training or recreation equipment and/ or space for use on site. Health and fitness centers, dance studios, gymnastics etc shall be considered examples of such use. Training or self improvement shall be an important component of the activity, and differentiate it from Commercial Recreation uses, where sport is the predominate activity. Commercial Recreation means non-governmental building, structure or open space, operated by a profit or non-profit entity open to the general public used for amusement and enjoyment. Such facilities may include bowling alleys, tennis courts and other leisure uses. Commercial Recreation, Indoor means Commercial Recreation occurring primarily indoors: bowling alleys, swimming halls, but excluding golf domes. Commercial Recreation, Outdoor means Commercial Recreation occurring primarily outdoors: golf driving ranges, volleyball courts, tennis. Golf domes shall be construed as Commercial Recreation, Outdoor. Districts Sec. 30-1022. C-1 central business district. The C-1 central business district is appropriate for retail, service, and commercial uses to serve the shopping and service needs of the residents and surrounding community, as distinguished from highway commercial uses. The central business district is intended to encourage uses and designs that are consistent with the historic character of the central business district. Emphasis shall be placed on pedestrian access and design standards with flexibility to preserve the historic character of the central business district. Uses shall be designed to eliminate any nuisance or incompatibility with surrounding uses. Conditional Uses Physical Recreation or training Sec. 30-1024. C-3 highway commercial district. The purpose of the C-3 highway commercial district is to recognize the need for commercial establishments on or serving with immediate access to major highways. Permitted land uses should take advantage of the highway access in a manner which other business districts are not afforded. In addition to retail and commercial uses, quasi- industrial and wholesale enterprises that do not meet an industrial setting and have considerable customer contact are acceptable in the highway commercial district. Conditional Uses Physical Recreation or training Commercial Recreation, Indoor Sec. 30-1294. BP business park district. (a) Purpose. (1) The business park district is established to encourage a planned, integrated environment for certain industrial, office, and commercial uses, which are compatible with and complement each other as well as the surrounding land uses. The underlying land use designation within the district may vary and may be either light industrial or highway business. Development within the business park district will correspond with the land use designation. Industrial and office uses are allowed where the land use designation is light industrial, and commercial uses are allowed where the land use designation is highway business. (2) It is the intent of this section that development reflect common themes using compatible architectural design and consistency in sign age, landscaping, and lighting. It is also the intent to encourage businesses, which generate a high number of jobs per square foot rather than predominantly warehouse type uses. Permitted uses Physical Recreation or training, if less than 5,000 square feet, provided the underlying land use is Mixed Use or Highway Business. Conditional Uses Physical Recreation or training, if 5,000 sq feet or greater, provided the underlying land use is Mixed Use or Highway Business. No Changes were proposed for the industrial zoning district. Recommendation Staff requests direction and support from the Council. With this support, staff will forward the draft to the City Attorney for his review and develop a formal ordinance and resolution for consideration at a future meeting. Respectfully Submitted Jeremy Barnhart Planning Manager Action Motion by _ Second by _ Vote Follow Up . . City Council Minutes April 10, 2006 Page 3 5.2. Mayor's Discussion of Briggs Proposal Mayor Klinzing explained that this item has to do with the issue of commercial property in the city and whether or not we have enough flexibility with the types of property and locations that will work for people. She stated the council in the past has struggled with whether or not a request fits into the proper zoning and whether or not council wanted to put those uses in that zone when council wanted the type of uses that should be in the office park zone. She stated the council did not want to cause a conflict. She stated the issues are - where do they go, how do we serve them, and possibly the rezoning of property behind the new furniture store to allow the use for a professional dance, studio. Pam Sitts of PS Dance Studio and Pat Briggs of Briggs Properties discussed with council some of the sites owned by Briggs Properties seeking advice for a location for a dance studio. Councilmember Motin stated that the council is trying to keep the business park area, the N orthstar Business Park, and the Gateway for light industrial use. He stated there is the Home Depot and the Maxsum Furniture Store but the furniture store was allowed with the idea that it would be the end of the commercial area. He stated that there may be other industrial locations that aren't as prime of a location where a studio could be located. Councilmember Farber agreed with not using prime industrial land for this use; that staff needs to work with Mr. Briggs; and that he is not ready to make a decision. Mayor Klinzing stated that this issue will not be resolved with the current ordinances and if the council is not interested in changing these ordinances that they could say no or can give . direction to staff to look at drafting potential changes. Council wishes to accommodate this dance studio. The majority of the council indicated that rezoning in light industrial may be difficult for council to approve. It was the consensus of council to have staff work with Mr. Briggs citing options that he has for development of property that he owns. Councilmember Morin would like staff to look at the potential to designate certain areas that are light industrial to be Tier I and Tier II and stated that he doesn't wish to open up all light industrial areas to be zoned for dance studios. 6.1. Pinewood Financing City Administrator Lori Johnson stated that this item has been discussed in the past and that council has received a letter from Dawn Polston-Hork on behalf of the Parks and Recreation Commission regarding their opinion on financing using the Park Dedication fund to finance Pinewood. She stated there are funds available in the Park Dedication fund, the RDF Reserve ($714,000), the Landfill Construction Debris fund ($193,000). She stated that the Park Dedication fund currently does not have enough cash to cover the full balance paid at closing because of improvements taking place this year. The amount that was paid at closing on Thursday was $300,000 for the down payment and $90,000 for the first year lease payment. She stated that she would like council to discuss where to charge those two upEront payments and the ongoing payments. . 5.5. City Council Minutes May 8, 2006 Page 5 5.4. Wedand Buffer Ordinance Environmental Administrator Rebecca Haug reviewed the draft wetland buffer ordinance. The purpose of this ordinance is to protect the remaining wetlands in the City of Elk River. The ordinance would require a 25 foot buffer strip from the delineated wedand boundary or the ordinary high water level of a storm water pond In this area, no mowing, clearing or removal of vegetation would be allowed A minimum of 20 feet from the wetland buffer setback would also be required. No structures would be allowed in this setback area. Fences and nature trails, at the City's approval, would be allowed This ordinance is intended for new construction of plats so any existing lots that abut a wedand would not be affected. The Council members gave suggested changes. TIlls item will be revised and placed on an upcoming Council agenda for approval. Councilmember Farber returned. Discussion on Briggs Proposal Community Development Director Scott Clark stated at the April 10, 2006 City Council work session, the City Council directed staff to review options regarding what was called the "Briggs Proposal." Issues discussed at that meeting were a concern that certain types of businesses (dance, gymnastics, music, etc.) have a difficult time in finding affordable commercial space to make their businesses profitable and converting some industrial property to commercial may be a method to create the necessary economics for this type of use to be profitable. Discussion also centered on concerns of converting scarce industrial property into commercial space and creating a tier type of zoning. Mr. Clark and Community Development Director Catherine Mehelich reviewed the staff report regarding the economic policy considerations, commercial and industrial inventory in .the City, and zoning issues. Staff is recommending that the Planning Commission review and revise the Business Park District ordinance. Council concurred 5.6. I.;and Use Financial Management Plan . 5.7. Community Development Director Scott Clark reviewed his staff report regarding entering into a Land Use Financial Plan (LUFP) with Ehlers and Associates. He stated in order to determine the appropriateness of land uses some type of financial management planning model needs to be developed to test future revenue generation to needed expenditure levels for a city built-out to a population of 36,000. He further explained the purpose, process, and costs associated with the proposed Plan. MOVED BY COUNCILMEMBER MOTIN AND SECONDED BY COUNCILMEMBER DIETZ TO APPROVE EHLERS' "LAND USE FINANCIAL PLAN DRAFT SCOPE OF WORK," DATED APRIL 26,2006, AND TO PROCEED WITH THE DEVELOPMENT OF THE PLAN AS PRESENTED. MOTION CARRIED 5-0. Street Department Temporary Office Discussion on this item was tabled until the June work session. MEETING OF THE ELK RIVER PLANNING COMMISSION HELD AT ELK RIVER CITY HALL TUESDAY, MAY 8, 2007 EXCERPT OF MINUTES: Members Present: Chair Stevens, Commissioners Anderson, Austad, Lemke, Scott, Staul and Westgaard. Members Absent: None Staff Present: Jeremy Barnhart, Planning Manger; Sheila Cartney, Senior Planner; Chris Leeseberg, Planner; Debbie Huebner, Recording Secretary 5.3. Request by City of Elk River for Ordinance Amendment Regarding Recreational Facilities in the Business Park Zoning District - Case No. OA 07-06 - Public Hearing Planning Manager Jeremy Barnhart explained that this request is in response to a building permit request to f111ish a tenant space for a commercial recreation business (dance studio/ gymnastics facility) in the Business Park zoning district. He explained that this type of use is permitted as a conditional use in the C-l and C-3 zoning district, and in the 1-1 zoning district as a conditional use, provided the property is not platted. The Commission is asked to consider whether or not additional zoning districts should permit this type of use as a permitted use or conditional use, specifically the Business Park district. Mr. Barnhart reviewed four options for the City consider, ranging from making no amendment to allowing the use as an accessory use with restrictions on the size of the facility. He asked that the Commission make a determination whether the use is appropriate or not, and if not, where it should be permitted. Staff recommends Commercial Recreation not be permitted within the Business Park Zoning District. Should the Planning Commission and City Council feel the use is appropriate, Staff would recommend a Commercial Recreation use be classified as an accessory retail use, for the purposes of space allocation, and preservation of business park character, with no more than 15% (5,000 sq ft) of the occupied quarters being used for the Commercial Recreation. Vice-Chair Scott opened the public hearing. Pat Briggs, of Briggs properties and owner of the subject property - Provided background information regarding his business interests in the community, and history of his request to locate the PS Dance Studio in his existing facility in the Elk River Business Park. He stated that a former staff person agreed that the use could be allowed with no conditional use permit, since it would be utilizing less than 15 percent of the total occupied space of the building. He stated that he has a signed lease with his dance studio client and was ready to move forward with a building permit to finish the space, when he was told the use was not allowed under the current zoning. He stated that 75 percent of the building is leased and has created 52 jobs. He stated that he spoke with the Mayor and she suggested the item be discussed in a City Council workshop. He felt that staff's interpretation is incorrect and had concerns with the defmition being applied to the proposed use. Planning Commission Minutes May 8, 2007 Page 2 Mr. Barnhart explained that staff is looking for direction from the Commission whether or not they feel the use is appropriate in the Business Park zoning district. Mr. Briggs stated that he felt the use could be addressed as a conditional use permit under the education venue, such as vocational, technical and trade schools, as discussed with the Community Development Director. He stated that clients receive school credits for attending and costs are deductible, according to the IRS. He stated that other cities such as Chanhassen, Ramsey and Plymouth, allow the use in business park zoning districts. Mr. Briggs stated he would like to rent out the space, and that has spent 1 1fz years in meetings for this issue. He stated he would like to submit the application per the Planning Commission's and Council's recommendation, whether it be as a vocational, private recreational, or commercial recreational use. Mr. Briggs stated that since the building has a site line to Highway 169, the use could also be considered a personal service establishment as an underlying commercial use in the Business Park. Commissioner Staul asked if Mr. Briggs felt the use was not a commercial recreational use. Mr. Briggs stated yes, and stated that the use is open to the general public, but that the dancing is private with professional dancers as instructors. Commissioner Staul as if the students are professional dancers. Mr. Briggs stated that they are students and their only reason to be there is to be instructed, and felt that the use could be defmed as a personal service. Commissioner Staul asked if the use was deemed to be permitted as a commercial recreational use, would Mr. Briggs still have an issue. Mr. Briggs stated no, but that he felt the defmition needs to be clarified. Mr. Barnhart stated that the question is whether or not the use is appropriate and if so, should it be included in all three uses within the Business Park zoning district, and whether or not limitations on the size of the use should be imposed? There being no further public comment, Vice-Chair Scott closed the public hearing. Mr. Barnhart stated that staff request direction from the Planning Commission regarding a possible text amendment, which may include new defmitions, and whether or not the use should require a conditional use permit. Commissioner Westgaard stated that he felt more discussion is needed regarding a definition for the proposed use and he was not comfortable making a recomm~ndation tonight. He stated that questions need to be answered regarding what is educational, what is recreational, and where the use is appropriate. He felt the use could be a twist on words and up to interpretation. He stated he would like more information before providing a recommendation. Mr. Barnhart stated that issue can be broken into pieces consisting of: 1) determining whether or not the use is appropriate for this zone; 2) whether or not the use is commercial recreation; 3) where does this type of use fit; and 4) is the use a vocational! educational use or for enjoyment. Commissioner Staul asked if the dance studio on Railroad Drive was a permitted or conditional use. He stated he felt the commercial recreation definition as it currendy exists is too broad and some of the uses would not be acceptable in the Business Park zoning district. He stated that commercial recreation needs to be defined and suggested that other cities be surveyed regarding this issue. Commissioner Lemke asked if the Commission was bound by any past Council action. Mr. Barnhart stated that there is some history on this issue, and that there have been changes in Planning Commission Minutes May 8, 2007 Page 3 the Council since that time. Commissioner Lemke stated that there is some confusion on this issue and he would like to study it further at a workshop. Mr. Barnhart noted that uses other than commercial recreation would create more employment in the Business Park zoning, and some of these types of uses would not be appropriate, such as a bowling alley or a dirt bike racing facility. Commissioner Anderson concurred that this issue should be studied further in a workshop setting. He stated that this is the ftrst time the Planning Commission has heard about Mr. Brigg's issue and they are not prepared to address it until the use is better deftned. He stated he supports filling empty business park space and the upgrading of uses. MOTION BY COMMISSIONER WESTGAARD AND SECONDED BY COMMISSIONER STAUL TO TABLE THE REQUEST BY THE CIYT OF ELK RIVER FOR AN ORDINANCE AMENDMENT REGARDING RECREATIONAL FACILITIES IN THE BUSINESS PARK ZONING DISTRICT, CASE NO. OA 07-06. MOTION CARRIED 6-0. 13065 Orono Parkway Elk River, MN 55330 March 27, 2007 Mr. Pat Briggs Briggs Properties 11110 Industrial Orcle NW Elk River, .MN 55330 RE: Building permit- tenant space 121 Mr. Briggs, The City has received a building permit to finish space within the Elk River Business Park. On the building permit, the space to be improved is identified as space H. Based on our understanding of your use, and the permitted zoning for the subject property (currently zoned BP), it does not appear that your proposed use is permitted within the BP zoning district as a permitted or conditional USe. The Gty allows "Private Recreational Facilities" as an accessory use; however, your proposed use does not fit within that category. Because of this, Staff is unable to process and issue the permit. However, in 2002, a similar use successfully argued for an interim use based on a vocational, technical, or trade school. Please note that Staff does not support this use as a vocational school and that the majority of the Council has changed, and similar approval is not guaranteed. Please feel free to contact me should you have any questions, or would like the necessary applications forms forwarded to you. I can be reached at 763/ 635-1034. Sincerely, ~~ Jeremy Barnhart, AICP Planning Manager CC: Bob Ruprecht, Building Official Scott Oark, Community Development Director 13065 Orono P:ttkway Elk River, MN 55330 May 31, 2007 Pamela Sitts 604 Railroad Drive Elk River, JvIN 55330 VIA US MAIL RE: Conditional Use Pemrit application Ms. Sitts, Thank you for your application for a Conditional Use Permit to operate a dance studio in Elk River. I'm sorry there has been some misunderstanding regarding your use. Mr. Briggs approached the City in March for a building permit to finish your tenant space. I :informed him that a dance studio is not a permitted or conditional use, and that an ordinance amendment would be necessary. See the attached letter dated March 27, 2007. I am returning your application, along with your application fee of $1,500 because the City Council does not have the authority to approve a conditional use in this zone for your use, at this time. You may file a formal appeal of this decision per section 30-634 by completing the appropriate application, obtainable at the Elk River City Hall. Alternatively, you may be aware that City Staff, in an effort to resolve this issue, has initiated an ordinance amendment to consider a physical training or recreation use as permitted or conditional use in several zoning districts, including the BP zoning district The City Planning Commission is currently reviewing possible language along those lines; the next meeting is scheduled to be held June 12, 2007 at 6:30, where the Planning Commission will continue their discussion. The Planning Commission will ultimately forward a recommendation to the City Council, possibly on June 18th. I hope to see you at one of the upcoming public meetings. If you have any questions or would like to discuss this in the mean time, please contact me at 763/ 635-1034. Sincerely, ~ g~ ~AlCF ~~=er Ene. CC: Pat Briggs, Property Owner Scott Oark, Community Development Director Peter Beck, Gty Attorney.