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ITEM 2.1OTSEGO PLANNING COMMISSION MEETING ITEM 2.1 OTSEGO CITY HALL MAY 6, 2019 7:00 PM Call to Order. Chair Black called the meeting to order at 7:00 PM. Roll Call: Chair Pam Black; Commissioners: David Thompson, Vern Heidner, Richard Nichols, and Alan Offerman; Absent: Commissioners: Jim Kolles, Roger Mord, and Aaron Stritesky; City Council: CM Tom Darkenwald. City Staff: City Planner Daniel Licht and Administrative Assistant Kelly Thelen. 1. Announcements: None. 2. Consider the following minutes: 2.1 April 15, 2019 Planning Commission Meeting_ Commissioner Thompson requested to amend the minutes on page five last paragraph and add "asked" between his name and about. Commissioner Offerman motioned to approve as amended. Seconded by Commissioner Heidner. All in favor. Motion carried. 3. Public Hearing Items: 3.1 Harvest Run East: (Per applicant this was continued from April 15) A. Zoning Map amendment rezoning from A-1 District to R-4 District and R-5 District. B. PUD -CUP related to lot requirements. C. Preliminary Plat. D. Vacation of existing drainage and utility easement. City Planner Licht presented the Planning Report. Applicant, Heather Lorch and Stephen Bona, Capstone Homes, Inc., 14015 Sunfish Lake Blvd NW, Suite 400, Ramsey were present. Ms. Lorch provided a PowerPoint presentation. Ms. Lorch said that Capstone is proposing a memorial to Faye Jacobs by naming the trail for her remembrance, which is supported by her family. Ms. Lorch commented on the neighborhood meeting April 2, 2019 with conversation about homes being offered and a common concern of the neighbors was the winter runoff and flooding. Chair Black opened the Public Hearing at 7:15 PM. Minutes of the Otsego Planning Commission May 6, 2019 Page 2 There were no public comments. Chair Black brought the discussion to the Planning Commission members at 7:16 PM. Commissioner Heidner questioned the driveway easement for the lot within Riverpointe Addition. City Planner Licht stated the easement is private between the two property owners and the City's intent is only to provide access to the lot from a public street within the proposed preliminary plat. Commissioner Heidner asked about the alignment of 581h and 59th Street at Quenroe Avenue. City Planner Licht answered that the Engineering Review include a condition that these streets intersect Quenroe Avenue at 90 degrees. Commissioner Heidner stated his concern about 57th Street having been resurfaced and potential for damage due to heavy construction traffic. City Planner Licht responded that the City Engineer manages the construction entrances with the final plat. Commissioner Heidner requested a condition be added restricting construction traffic from using 57th Street and 58th Street. Chair Black remarked about bus access into cul-de-sac streets and is concerned with multiple cul-de-sacs in Harvest Run East having a similar issue. City Planner Licht stated that the that the design for the cul-de-sac streets is adequate for school buses, garbage trucks, and fire engines. Commissioner Thompson said signage should be placed on the industrial land to the north so future residents are aware it will not be homes. City Planner Licht said the developer could be encouraged to provide information to buyers regarding the land use to the north, but signage cannot be required since it is under separate ownership. Commissioner Thompson questioned the front setbacks listed in the planning report. City Planner Licht said that the front yard setback for the R-5 District lots is 25 feet for the house and 30 feet for the garage face. Chair Black reopened the Public Hearing at 7:25 PM. Kevin Brenny, 16824 57th Street, stated his concern about construction traffic going through on 57th Street and Quilley Avenue. Mr. Brenny stated there are many young families and children in neighborhood so he is worried about the construction trucks going through. Mr. Brenny also pointed out his house is one that has water drainage issues in their backyard and would like it fixed. Chair Black closed the public hearing at 7:27 PM. Minutes of the Otsego Planning Commission May 6, 2019 Page 3 Commissioner Offerman asked about the process for the developer regarding the proposed memorial to Faye Jacobs. City Planner Licht said the Heritage Preservation Commission identifies possible historic names to the Parks and Recreation Commission, which then makes a recommendation to City Council for approval. Commissioner Thompson motioned to recommend approval of a Zoning Map amendment rezoning the subject site from A-1 District to R-4 District based on a finding that the request is consistent with the criteria outlined in Section 11-3-2.F of the Zoning Ordinance. Seconded by Commissioner OfFerman. All in favor. Motion carried. Commissioner Heidner motioned to recommend City Council approval of a vacation of existing drainage and utility easements and a PUD- CUP/preliminary plat for Harvest Run East, subject to the 11 conditions as amended to include: 12. Construction traffic shall be restricted from use of streets within Autumn Woods and Wokson Hills until such time as the second lift of asphalt is placed on streets within the plat. Seconded by Commissioner Thompson. All in favor. Motion carried. 3.2 Insurance Auto Auctions, Inc (IAAh A. Concept Plan for development of a 100 acre auto auction facility. City Planner Licht presented the Planning Report. Pete Willenbring, of WSB, introduced Steve Tibble and Jay Bajgert with IAA, along with Heather Nelson of WSB, were present as the applicants. Mr. Tibble said that IAA believes this is a good opportunity for this property and thinks it will kick off development of this area. Mr. Tibble said that cars come from insurance and dealer backlot or donation cars; every vehicle sells with an auction once a week. Mr. Tibble said IAA has 80 locations in the U.S. and Canada and employs 18,000 people. Mr. Tibble mentioned Tetra Tech preparation of Best Management Practices and insurance for sites for environmental concerns. Mr. Tibble said that the cars come to us from state tow facility within 3 to 12 days depending on the insurance company. The first stop in the process is the drop zone for imaging and inspections; if the cars leak, those vehicles are tested to contain leak before going to the storage yard. Once title comes from the insurance company, the car is to sell at auction, with 250 cars a week selling here. Mr. Tibble stated no parts are sold separately. Mr. Tibble said that all of the cars are sold to licensed dealers, with 35 percent sold internationally, through Minutes of the Otsego Planning Commission May 6, 2019 Page 4 live and internet auctions. Mr. Tibble added that the proposed use is not a junkyard, but a wholesale auto company with only outside storage and selling of vehicles. Ms. Nelson provided an overview of the sketch plan to include 72 acres of outdoor storage with 8 acres of buildings and the drop/loading zone. Lighting will only be provided for employee parking lots and the building perimeter. A single entrance and exit is proposed to Kadler Avenue. Screening along Kadler Avenue will be fencing and trees. The storage area surface is similar to a heavy duty roadway with 6 to 9 inches of compacted base, 2 to 4 inches of compacted millings mixed with asphalt emulsion, and a fog seal application to further seal the surface. Mr. Willenbring stated that IAA is constructing infrastructure and bringing jobs to the City. Mr. Willenbring said that the project could increase tax revenue by $250,000 and add 20 or more jobs. along with contributing $1,500,000 for Kadler Avenue improvements, and paying 100 percent of utility fees upfront. Mr. Tibble said with development of 100 acres and the related infrastructure spending, it is a large investment for IAA. Mr. Tibble said that there is a benefit to the City of having one entity on 100 acres and not many businesses smaller lots that would help spur industrial development in area. Chair Black reopened the Public Hearing at 8:00 PM. Doug Lindenfelser, 9364 95th Street, said that there are existing drain tiles for stormwater on west side of the property that need to be identified and maintained. Mr. Willenbring explained the stormwater drainage patterns for the site and identified areas that will be developed as stormwater basins. Mr. Lindenfelser added that the ditch at the northwest corner of the property needs to be cleaned out. Chair Black brought the discussion to the Planning Commission at 8:03 PM. Commissioner Heidner asked about the valuation information presented by the applicant and potential revenue to the City in taxes. Mr. Willenbring said the information on taxes is for the parcel after development using information for other similar parcels within the City. Commissioner Heidner stated he does believe the information it is a correct estimate of the value and potential tax revenue. City Planner Licht said the City Administrator used $5.5 million for property value generating $195,000 total taxes for entire property. Commissioner Heidner asked for the source of the $20 to 25 million improvement value. Mr. Tibble said the improvement costs is the estimate for site and street improvements. Commissioner Heidner replied that essentially IAA is building a $15 million parking lot. Minutes of the Otsego Planning Commission May 6, 2019 Page 5 Commissioner Heidner questioned how many cars will be stored at the site. Mr. Tibble said about 150 cars per acre when fully developed or 72 acres x 150 cars = 10,800 cars. Commissioner Heidner asked about the 4.6 turnover for inventory per year relative to estimated traffic. Mr. Willenbring said that tow trucks could haul multiple cars. Mr. Tibble said that the development will be constructed in two phases. Commissioner Heidner asked if the first phase is half of this site. Mr. Tibble replied yes. City Planner Licht added that the required EAW would include a traffic component to evaluate trip generation. Commissioner Offerman suggested they should be looking at the project like it is full from day one. City Planner Licht said as the developer is requesting approval for full build out and it should be evaluated as such. Commissioner Offerman asked about improvements for 70th Street between Kadler Avenue and CSAH 19. City Planner Licht said that 70th Street is shared by City of Albertville and Otsego and added that the two cities are working on reconstruction of the street section this fall. Commissioner Nichols asked about extension of temporary sewer with construction of Kadler Avenue. City Planner Licht explained the location of the trunk sewer lines for this area and the use of temporary connection for the proposed facility. Commissioner Offerman said his biggest concern is screening for the adjacent residential developments to the east of Kadler Avenue. City Planner Licht replied that the undeveloped land immediately east of Kadler Avenue is guided for office and industrial uses. Commissioner Offerman commented about the similar auto auction facility located off of CSAH 81 in Dayton and noted how is it not screened because there is no residential area close by. Commissioner Heidner said the site will need to be screened on all sides. Commissioner Heidner added he is having a hard time with the concept of a vehicle that has been totaled being stored and the likelihood of having another business nearby for selling parts because in the pictures included hoods up on the several cars pictured. Commissioner Offerman stated whether the cars come and go they are still sitting there. Commissioner Offerman agrees with the benefits of improving Kadler Avenue�and industrial area, but still wondered if this is the highest and best use for the property. Commissioner Heidner said that if Kadler Avenue is improved there will be more traffic on the north stretch of Kadler Avenue and on 80th Street. Commissioner Heidner added that with the current condition of 701h Street, some drivers would use 80th Street. Minutes of the Otsego Planning Commission May 6, 2019 Page 6 Commissioner Offerman questioned the anticipated traffic for the weekly auctions. Mr. Tibble responded the preview day is Tuesday for the auction Wednesday with probably 40 buyers coming in and 250 buyers on internet; pickup is 3 or 4 days after the auction. Commissioner Heidner recounted the 250 cars a week estimate and wanted to know if that include the trips by the buyers because he is counting 80 trips for buyers. Mr. Tibble said that the 250 trips per week figure did not count the buyers traffic. Commissioner Thompson commented that 50 vehicles daily coming to the facility is not all individual cars, but with a carrier or flatbed. Mr. Tibble agreed that a 3 car tow truck or 4 car carrier would be used also. Commissioner Heidner asked how cars are moved into and out of the storage area. Mr. Tibble explained the storage of the vehicles and use of a loader to move the cars. Commissioner Heidner wanted to make sure it does not damage or cause leaks to other cars when being moved. Mr. Tibble agreed there would be no damage. Commissioner Offerman wanted to know the location of the next closest facility to Otsego. Mr. Tibble stated in St. Paul. Commissioner Offerman followed up by asking where the next closest facility is that would be similar to an area like Otsego. Mr. Tibble replied Sioux Falls, South Dakota. Commissioner Offerman would like to see what the facility looks like. Mr. Tibble added Seattle, Washington and Houston, Texas also are similar locations. Commissioner Nichols wanted to hear fencing requirement of the Zoning Ordinance restated. City Planner Licht read the Zoning Ordinance requirement and explained the proposed fencing with an 8 foot fence and trees along Kadler Avenue and 6 foot chain link fence on the other three sides. Commissioner Offerman would like a screen from the south either with vinyl slats or a solid fence. City Planner Licht replied chain link with vinyl slats is not sufficient for screening, but that the Planning Commission can add stipulation requiring additional fencing and/or screening. Commissioner Heidner asked if this the would be the largest facility for IAA. Mr. Tibble answered there are facilities larger than this. Commissioner Heidner suggested to table this discussion tonight to wait for more information about other IAA facilities as an example. Commissioner Offerman would like aerial photos or other facilities that are similar areas to be consistent with the proposed facility. Chair Black returned to the public for additional comment at 8:28 PM. Minutes of the Otsego Planning Commission May 6, 2019 Page 7 Randy Hermann,14282 91St Street Northeast, said he is concerned about the stormwater issues, but not visual aspect. Mr. Hermann also asked that if loader is used in frost conditions, will the surface last for time of the interim use permit. Chair Black closed the Public Hearing at 8:29 PM. Commissioner Nichols asked about the area surrounding the facility in Seattle. Mr. Tibble said the facility is surrounded by an apartment complex, two sides to neighborhoods, and a condo complex. Mr. Tibble continued that it is 142 gross acres with 65 acres currently built out. Commissioner Nichols questioned how long the facility has been open. Mr. Tibble replied 1 year. Commissioner Offerman asked City Planner Licht for a summary of additional information that the Planning Commission is requesting by tabling the discussion. City Planner Licht said that additional information is to be provided regarding facilities in areas similar to Otsego including, Sioux Falls, Seattle, Houston, and the non -IAA location in Dayton, with the main concerns for surfacing, surrounding land uses, area of facility, and screening requirements. Commissioner Offerman asked about enforcement of the IUP termination date. City Planner Licht specified after the term limit expires, the right to the use ceases and they must vacate site. City Planner Licht added the property owner has right to request and extension of the use, but approval is not guaranteed. Commissioner Heidner said no business has been in Otsego for 35 years. Commissioner Thompson added there is a need for vehicles to go somewhere and insurance company to assess vehicle. Commissioner Heidner agreed but is concerned because it is a huge facility; if half size not as big a concern. Commissioner Nichols asked Commissioner Heidner to explain further. Commissioner Heidner said that the City gets tax money from tax revenue them and could be better use for it later. Commissioner Heidner said this use may also causing the need for other streets to be built. Commissioner Nichols said that the lot could sit empty for 35 years. Commissioner Offerman added does it have to be 35 years. Commissioner Nichols motioned to table. Seconded by Commissioner Heidner. All in favor. Motion carried. Commissioner Offerman asked if the public hearing will be renoticed. City Planner Licht said the information regarding the next discussion of the request will only be posted on the City website. Minutes of the Otsego Planning Commission May 6, 2019 Page 8 CM Darkenwald asked how the requested information will be gathered. City Planner Licht said that City staff will coordinate with developer on the information to be presented so as to meet the Planning Commission's expectations. 3.3 Parrish Meadows: A. Zoning Map amendment rezoning from A-1 District to R-6 District. B. PUD-CUP/Preliminary Plat. City Planner Licht presented the Planning Report. Applicant, Collin McGlynn, 1603 Jarvis Street, Elk River, and William Hass, 24735 100th St NE, Zimmerman, WH Diversified, present. Mr. McGlynn agreed with report and ready to answer questions if have any. Chair Black opened the Public Hearing at 8:47 PM. No comments made. Chair Black brought the discussion to the Planning Commission members at 8:48 PM. Commissioner Offerman commented on the landscaping for detached villas around house and along about Parkington Avenue. City Planner Licht replied that Parkington Avenue will be landscaped with a residential buffer yard on the west side and the east side will be done when the commercial lots develop. Commissioner Heider commented on the street connections to the west and north asking if the one to the west could be eliminated. City Planner Licht responded that 87th Street exists and will provide a connecting street for neighborhood access and emergency vehicles. City Planner Licht also explained the existing property boundaries in the area mean that the lot widths cannot be shifted to gain an additional lot if one or both of the street connections is eliminated. Chair Black returned to the public for additional comment at 8:54 PM. Kevin Lefebvre, 8585 Parrish Avenue, said that shifting Parkington Avenue to the east may be getting close to his house that will remain on the south commercial lot. City Planner Licht explained where Parkington Avenue is to be shifted. Mr. Lefebvre asked if there is any landscaping on east side of road to his house. City Planner Licht replied the landscaping on the east side would be installed when lot developed with commercial uses. Chair Black closed the public hearing at 8:56 PM. Minutes of the Otsego Planning Commission May 6, 2019 Page 9 Commissioner Thompson asked for a sign identifying a future fire station on the City parcel. City Planner Licht answered City Council recently finished a Fire Service study and that it may be possible to post a sign once the staging for fire station locations is determined. Commissioner Offerman motioned to approval of a Zoning Map amendment rezoning the subject side from A-1 District to R-6 District and B-3 District based on a finding that the request is consistent with the criteria outlined in Section 11-3-2.F of the Zoning Ordinance. Seconded by Commissioner Nichols. All in favor. Motion carried. Commissioner Offerman motioned to recommend City Council approval of the Parrish Meadows PUD-CUP/preliminary plat, subject to the 11 conditions. Seconded by Commissioner Thompson. All in favor. Motion carried. 4. Update on City Council actions. CM Tom Darkenwald updated the Planning Commission on recent City Council actions. 5. Update on future Planning Commission Agenda items. City Planner Licht updated the commissioners on possible future agenda items. 6. Adjourn. Commissioner Offerman motioned to adjourn. Seconded by Commissioner Nichols. All in favor. Motion carried. Adjourned at 9:04 PM. Pam Black, Chair ATTEST: Kelly Thelen, Administrative Assistant