3.0 PCSR 06-27-2006cty or
Elk•
River
Elk River Planning Commission -Work session
To:
Planning Commission
From: Jeremy Barnhart, AICP
Planning Manager
Re uest
Staff requests direction regarding the West Oaks development.
Attachments
Item # 3
•Staff report • Base map
•Submittal elevations • Post development correspondence
Overview
The Final Plat for West Oaks was approved by the City Council in September, 2003. The first phase
included single family homes, with phases allowing the construction of the attached family units
coming in the years after, (7/04 2nd phase, 11/04 Std phase, and 6/05 4th phase). Through the plan
review phase, one and two story buildings were presented, although no specific location information
was included in the formal approval. Elevations of both buildings were presented, attached.
Construction on the project has started, there are currently 2 single story buildings and 4 two story
buildings completed. The developers desire to pull building permits on several additional buildings,
and intend to build single story buildings on the remaining lots. The developers have noted that they
will build 2 story buildings when the market suggests a need. The permitted use category does not
designate between one and two story buildings.
Staff has suggested that the height of the buildings continue the pattern that had been established:
single story buildings located within the center area, and the two story buildings be located on the
outside. The developer has asked staff to reconsider.
In Staffs opinion, the character of all neighborhoods is driven, in part, by the effect of the
streetscape. Open space, landscaping, building materials, sidewalks, and lighting all work toward
developing the streetscape. In attached family developments, the streetscape is dominated by large
buildings with reduced front and side yard setbacks. Understanding this character, and the end
product of a proposal is part of the development review process. Staff believes an understanding of
the streetscape is important, and asked the developer to develop a master plan to identify the final
build out of the project.
Staff desires Planning Commission direction on the master plan. Further information will be
provided at the meeting.
Planning Department Mission: the orderly development of a livable and sustainable Elk River community.
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River
13065 Orono Parkway
Elk River, MN 55330
Roger Derrick
Cottage Homesteads at West Oaks, LLC
7300 Metro Boulevard #360
Edina, MN 55439
RE: West Oaks Master Plan
Roger,
Thank you for submitting the master plan as we discussed on May 26~. It is important
that the City understands the context of the project, including the building massing, as
this has an impact on the streetscape and the ultimate feel of the neighborhood. The
master plan will be used in the review of future plats, to be compared to the original
approved project.
The project was originally laid out to preserve pockets of natural resources, which serve
to break up long rows of housing. It seems important that these individual rows of
housing, within as definable area, be consistent in mass and scale. Your master plan and
supporting narrative suggests that all un-built units will be single level. Generally, staff
supports this intention. However, after a review of the neighborhood, buildings 4, 5,
and 12 should be 2-story, based on the existing homes built next door. This will create a
pleasing streetscape pattern while being flexible to the current market conditions. When
you resubmit for replatting, staff will recommend that the master plan includes the
changes outlined above.
If you have any questions, please feel free to contact me. I can be reached at
763.635.1034. I look forward to working with you.
Sincerely,
Jeremy arnhart, AICP
Planning Manager
Cc: Scott Clark, Community Development Director
Phone: 763.635.1000
Fax: 763.635.1090
wwwci.elk-river.mn.us
Cottage Homesteads at West Oaks, LLC
Cottage Homesteads at West Oaks, LLC
7300 Metro Boulevard #360
Edina, MN 55439
952.830.0161
Fax: 952.831.1215
June 13, 2006
Jeremy Barnhart
City of Elk River
13065 Orono Parkway
Elk River, MN 55330
Dear Jeremy,
I am in receipt of your letter regarding our master plan that you asked us to submit for West
Oaks. Your letter states that staff generally supports our building one-level townhomes and
recognizes the need "to be flexible to the current market conditions," however, you are requiring
two-story townhomes on building pads 4, 5, and 12. This requirement would pose an extreme
hardship on us.
Our lender, who had agreed to finance all 122 townhomes, now wants out of the loan because of
the slow sales of the first 18 two-story units that we had constructed. They have already funded
additional building lots that have not yet been built on and want those mortgages paid off as well.
The only way to do that is to refinance the project with another bank. As you know, we have
replatted four building pads, to fit one-level units. Two of those buildings have already been
built. We are anticipating construction on the other two later this month. While there are very
few buyers looking for two-stories at this time, and they expect deep discounts, there seems to be
more activity in the one-level market. Our sales people have taken orders for one-level units in
buildings four and five.
We bought West Oaks from George Sanford who had previously developed all of the lots.
George told me that the approvals he obtained from the city did not designate any particular
building or number of units to be two-story. Our contract calls for us to take down lots from him
over a period of time. The last phase to the west is not to be built on until we have taken down
most of the other lots.
Here is our situation at this time: we have owned the property for nearly two years and have
already paid out more than $250,000.00 in interest to George Sanford and $289,000.00 to the
bank. Before the end of this month, we are obligated to pay an additional $94,000.00 in interest.
Interest keeps accruing daily. Ordinarily, sales activity pays the interest payments but that has
not occurred in this case. In addition to interest payments coming due, we also are required to
pay George Sanford quarterly principle payments of about $150,000.00. We need to keep
building and selling townhouses in order to maintain the viability of this project. At this time,
the market tells us that one-level townhomes are viable and two-stories are not. We have another
lender who, while not interested in refinancing the entire project, is willing to finance one-level
buildings, a few at a time. As previously mentioned, we have customers who want to buy in
buildings four and five. We can't afford to turn them away and leave three of our prime building
sites unbuildable until someday in the future when the two-story market may come back.
Nobody knows when that will happen. In conclusion, I would like you to reconsider your
proposed requirement that buildings 4, 5 and 12 be constructed with two-story townhouses
instead of one-level. Thank you for your consideration.
rely,
R Derri
Cottage Homesteads at West Oaks, LLC