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ITEM 5.1TPC The Planning Company MEMORANDUM TO: FROM: DATE: RE: TPC FILE: BACKGROUND 3601 Thurston Avenue Anoka, MN 55303 763.231.5840 TPC@PlanningCo.com Otsego Planning Commission D. Daniel Licht, AICP 11 February 2020 Otsego —Comprehensive Plan; Multiple Family Uses 011311111 5_1 The City Council has requested that City staff provide information as to possible actions that the City may consider with regards to the City's land use controls to address recent requests for multiple family development from a community -wide perspective. This effort is being initiated in response to contacts made by several developers interested in possible multiple family developments for parcels not presently guided by the 2012 Comprehensive Plan or zoned for allow for multiple family dwellings. The Planning Commission discussed multiple family land uses at their meeting on 3 February 2020. The Planning Commission considered possible amendments to the Future Land Use Plan, Zoning Map, and Zoning Ordinance as to the amount, location, and performance standards for multiple family dwellings in Otsego. The information outlined herein presents the information related to multiple family dwellings as discussed by the Planning Commission. Exhibits: ■ Land Use Concept graphic ■ Future Land Use Plan map ■ Existing Multiple Family Opportunity Sites map ■ Potential Multiple Family Opportunity Sites map ■ Recommended Land Use Plan Amendments map ■ Potential Multiple Family Sites #1-10 (10 pages) ANALYSIS Housing Goals and Policies. The 2012 Comprehensive Plan establishes the following goals and policies related to development of housing in the community. Goals are defined as outcomes that will ultimately result in achieving the kinds of living, working, and recreational environment that is desired in Otsego and policies are courses of action that lead to achievement of stated goals. Together the goals and policies of the 2012 Comprehensive Plan serve as to inform and guide land use decision making. Goal: The City shall provide housing opportunities for persons of all ages and income levels that allow them the ability to maintain residence within Otsego throughout the various stages of their lives. Policies: ■ Maintain a balance in the availability of quality housing choices throughout the City based on benchmarks established by the City's Land Use Plan and Housing Plan; the City shall periodically define the type and amount of new housing that is to be built to maintain consistency with established benchmarks. ■ Recognize the need to develop of a variety of twin homes, townhouses, and multiple family dwellings to supplement conventional single family homes giving due consideration to local market demands and desired community character. ■ Guide areas for medium and high density residential land use so as not to be concentrated in any one area of the community or over such acreages at any one location as to create potential land use compatibility, transportation, utility or service delivery issues. ■ Promote development of twin homes, townhouses and multiple family dwellings adjacent to areas targeted for commercial development to provide ancillary market support. Multiple family dwellings are potentially allowed uses within areas guided by the Future Land Use Plan or medium -to -high density residential use, as well as single family villas and townhouses. Development of multiple family uses are important in Otsego from a housing and also economic development perspective. Multiple family uses provide housing opportunities for those persons just entering the work force that either do not desire, need, or resources for a single family dwelling, for those in the labor force whose income levels do not allow for acquisition of a single family dwelling, and those empty nest or senior households transitioning away from single family dwellings due to preference, income, or reasons to do with physical limitations. The Comprehensive Plan also addresses the Future Land Use Plan as a long-range planning document that is based on community priorities and not reactive to short term market trends The Planning Commission expressed concern that the current interest in development of multiple family dwelling units is to be addressed in accordance with the City's established growth management and land use policies so as not to add supply in excess of demand or not within the desired proportion of residential dwelling unit types: Goal: Develop a cohesive land use pattern that ensures compatibility and functional relationships among activities. Policies: ■ Encourage provision of a balanced variety of development types to satisfy the needs, desires and income levels of all people while preventing an oversupply of any one type of development. Implement an interim land use plan to prevent an over -allocation of land zoned for any particular use in excess of actual demand or service capacities as the Land Use Plan is a general long-term, suggested land use pattern for the City intended to develop over time. The Interim Land Use Plan of the 2012 Comprehensive Plan states that until a parcel is deemed appropriate for development of a higher intensity land use as guided by the Future Land Use Plan, rural land uses and 1 dwelling unit per 40 acre density will be maintained under the A-1, Agriculture Rural Service District within the Sewer Service Districts or at a maximum of 1 dwelling unit per 10 acres within the Urban Service Expansion Areas. The Planning Commission indicated support for continued use of the Interim Land Use Plan strategy to control the pace of development for multiple family land use uses so as not to represent not more than approximately 10 percent of the available housing stock within the City. Demographics. The 2012 Comprehensive Plan included a demographic profile of the City based on 2010 Census data. The US Census Bureau prepares an annual estimate of population and household data that projects changes occurring in the City since the prior census. City staff has used the American Community Survey data to provide a brief summary of demographic changes in Otsego since sewer and water utilities were first constructed supporting increased development beginning in 2000. Population and Households. Development in Otsego has resulted in increases in population and households since 2000. The rate of growth from 2000 to 2010 was 267 households per year notwithstanding the significant drop in new construction occurring between 2008 and 2010 when less than 100 new homes were built each year. Since 2010, the rate of growth has occurred at a slower pace of 154 new households per year. The recent 5 year average for residential construction has been increasing to the rate of 248 dwelling units per year with 300 new dwelling units added in both 2018 and 2019. 3 Otsego has a relatively large household size figure at 2.9 persons per household. Demographic trends nationally and within the Twin Cities Metropolitan Area are moving to smaller household sizes with 2.8 or fewer persons per household common for suburban communities. The nature of Otsego's development character oriented toward entry level and move -up single family dwellings brings an influx of young and growing families to the community juxtaposed with in place aging of the existing population consistent with national and regional trends. ■ Household Characteristics. The characteristics of the households within Otsego are consistent with that of a growing suburban community with housing consisting primarily of single family dwellings. Population, Households and Household Size Year Population Households Persons Per Household 2000 6,389 2,062 3.08 2010 13,571 4,736 2.86 2018 17,323 5,975 2.90 Source: U. S. Census 2000 and 2010; Minnesota State Demographer Otsego has a relatively large household size figure at 2.9 persons per household. Demographic trends nationally and within the Twin Cities Metropolitan Area are moving to smaller household sizes with 2.8 or fewer persons per household common for suburban communities. The nature of Otsego's development character oriented toward entry level and move -up single family dwellings brings an influx of young and growing families to the community juxtaposed with in place aging of the existing population consistent with national and regional trends. ■ Household Characteristics. The characteristics of the households within Otsego are consistent with that of a growing suburban community with housing consisting primarily of single family dwellings. Families make up more than three-quarters all households and those with children are just over 40 percent of all households in 2000, 2010, and 2018 data periods. There is a trend over this period of a slight decrease in the percentage of total households of families with children reflecting larger societal changes towards people waiting longer to have children and having fewer children. Population by Age. The table below summarizes changes in Otsego's population by age group since 2000 when significant development initiated with availability of sewer and water utilities. The largest demographic age group in Otsego is the labor force representing more than 60 percent of the population during each of the data periods. rd Household Type 2000 2010 2018 %Total HH %HH W/ Children %HH W/Out Children %Total HH %HH W/ Children %HH W/Out Children % Tota l HH %HH W/ Children %HH W/Out Children Family Married 71.0% 40.4% 30.6% 62.9% 34.6% 28.3% 66.3% 33.3% 33.1% Family 1 parent 10.2% 6.4% 3.6% 12.3% 7.9% 4.4% 14.6% 7.9% 6.6% Subtotal 81.2% 46.8% 34.2% 75.2% 42.5% 32.7% 80.9% 41.2% 39.7% Nonfamily Households 18.8% 0% 18.8% 24.7% 0% 24.8% 19.1% 0% 19.1% Total HH 100.0% 46.8% 53.2% 100.0% 42.5% 57.5% 100.0% 41.2% 58.8% Source: US Census 2000, 2010; US Census ACS 2018 Families make up more than three-quarters all households and those with children are just over 40 percent of all households in 2000, 2010, and 2018 data periods. There is a trend over this period of a slight decrease in the percentage of total households of families with children reflecting larger societal changes towards people waiting longer to have children and having fewer children. Population by Age. The table below summarizes changes in Otsego's population by age group since 2000 when significant development initiated with availability of sewer and water utilities. The largest demographic age group in Otsego is the labor force representing more than 60 percent of the population during each of the data periods. rd School age children are the second largest demographic at approximately 30 percent of the population reflecting the character of both Otsego's household profile and housing inventory oriented towards traditional single family homes. Seniors represent a much smaller segment of the population in Otsego, but one that has increased since 2010. Prior to availability of municipal sewer and water utilities, there were no options for housing other than traditional single family homes; availability of these utilities has made possible construction of townhouses and multiple family dwellings, including senior oriented facilities such as Guardian Angels Riverview Landing. The table above also shows the general trend of an aging population. Between 2000 and 2018, the median age in Otsego has increased from 32 to 35 years of age. Each of the demographic categories each also show a trend towards an older population with the percentage of school age and labor force populations decreasing and retired aged people increasing. Within the largest labor force category there is also a shift from the younger range of ages to the older 45-64 subset. It may be expected that the trend to an older overall population in Otsego will continue as the initial households that moved to the City starting in 2000 continue to age in place. The aging of the Otsego population brings opportunities in terms of housing for single family villa, townhouse, and multiple family options that may be desirable to an older demographic allowing them to stay within the community. With opening of Guardian Angels Riverview Landing, the 2020 census may show the percentage of retired age persons remaining in Otsego increasing. Availability of these housing options may also serve to attract other older persons to Otsego from other places including those that move to be closer to children already living in Otsego. Population By Age Group Age Group 2000 2010 2018 School Age Under 18 32.5% 30.9% 29.1% Labor Force 18-24 7.7% 6.7% 5.4% 25-44 34.2% 35.2% 33.6% 45-64 21.4% 21.5% 23.8% Subtotal 63.3% 63.4% 62.8% Retired 65-74 2.6% 3.9% 7.2% 75-84 1.4% 1.4% 0.8% 85+ 0.2% 0.3% 0.1% Subtotal 4.2% 5.7% 8.1% Total 100.0% 100.0% 100.0% Source: US Census 2000, 2010; US Census ACS 2018 The table above also shows the general trend of an aging population. Between 2000 and 2018, the median age in Otsego has increased from 32 to 35 years of age. Each of the demographic categories each also show a trend towards an older population with the percentage of school age and labor force populations decreasing and retired aged people increasing. Within the largest labor force category there is also a shift from the younger range of ages to the older 45-64 subset. It may be expected that the trend to an older overall population in Otsego will continue as the initial households that moved to the City starting in 2000 continue to age in place. The aging of the Otsego population brings opportunities in terms of housing for single family villa, townhouse, and multiple family options that may be desirable to an older demographic allowing them to stay within the community. With opening of Guardian Angels Riverview Landing, the 2020 census may show the percentage of retired age persons remaining in Otsego increasing. Availability of these housing options may also serve to attract other older persons to Otsego from other places including those that move to be closer to children already living in Otsego. Housing Needs. The need for various types of housing in a community is based on the demographic profile of its households as well as the City's economic development goals. Population and household needs for housing will change over time and the various stages of life. Alignment of a community's demographic profile and housing need is based on the concept of life cycle housing outlined below: Life Cycle Housing Life Cycle Demographic Housing Type of Stage Characteristics Preferences Housing Entry -Level Age early 20s, often Limited tenure, prefer to Apartments Households single, no children rent, shared households First-time Age mid-20s to 30s, Interim tenure, prefer to Single family Homebuyer single and married purchase entry level Single family villa households, some single family dwellings or Townhouse households with children rent larger apartments Apartment with amenities Move -Up Age late 30s to 40s, Larger single family Single family Homebuyer single and married homes households, most with multiple children Empty Age 50s to 60s, 1 or 2 Prefer to own smaller Single family Nesters person households lots and dwellings with Single family villa without children at lower maintenance Townhouse home including HOA options Independent Age 60s to 70s, 1 or 2 May consider renting, Single family Seniors person households desire lower cost and Single family villa without children at maintenance, may be Townhouse home seasonal residents Apartment Seniors Age 70s and older, 1 or 2 May consider renting, Townhouse Needing person households desire lower cost and no Apartment Assistance without children at maintenance, health Assisted living home, 1 or more within services desirable, may Secondary dwelling household may have move in with relatives mental or physical limitations requiring assistance 0 Existing Dwelling Units. The existing supply of housing within Otsego is primarily single family dwellings divided between those having rural utility services and those connected to municipal sewer and water utilities representing almost 72 percent of the housing inventory at the end of 2019 as shown in the table below. The percentage of single family dwellings reflects both community preference and that opportunity for development of townhouse and multiple family dwellings in Otsego were not available before the City established the East Wastewater Treatment Facility in 1998 and the West Wastewater Treatment Facility in 2004. 2019 Dwelling Units Development Dwelling Unit Type Number % Single Family (Rural) 1,8891 27.9% Single Family (Urban) 2,960 43.7% Single Family Villa 357 5.3% Mobile Home Park 199 2.9% Townhouse 1,069 15.7% Multiple Family 306 4.5% TOTAL 6,780 100.0% Notes: 1. Not included are dwellings on unplatted parcels 190 The table below summarizes the existing multiple family developments approved to date, as well as those sites zoned to allow for development of multiple family dwellings. The addition of the potential multiple family dwellings on sites currently zoned for development would increase the percentage of multiple family units to approximately 13 percent of the current housing inventory comparable with similar cities. However, single family, single family villa, and townhouse construction is expected to occur at least at the rate of the current 5 year average of 248 new dwellings per year based upon a much larger available land supply designated for low density residential uses such that the increase in the number of multiple family units as a percentage of overall housing would be offset by the ongoing addition of other dwelling types. Existing Multiple Family Development Development Zoning District # DU Notes Riverview Landing PUD 142 Senior only (including memory care) Riverview Landing Phase 2 PUD 268 Requires PUD Development Stage Plan Riverbend North PUD 164 To be built in 2 phases Kittredge Crossings Outlot E PUD 391 Requires PUD Development Stage Plan Kittredge Crossings 3dOutlot A PUD 1161 Requires PUD Development Stage Plan Great River Centre PUD 190 Pending Parkview Retail R-7 72 Pending TOTAL 991 Notes: 1. Based on gross area at 1 du/2,500sf. 7 Community Survey. City staff researched multiple family dwellings within surrounding communities with characteristics similar to that of Otsego's current development scenario as well as those closer to the Twin Cities Metropolitan Area that are indicative of the future character of development and housing in Otsego. The table below summarizes the existing percentage of multiple family dwelling units within each City. Multiple family dwelling units in Otsego as a percentage of total housing units is less than the other surveyed cities except St. Michael, which is in a similar position as Otsego in terms of development history. Multiple Family Community Survey City 2018 Multiple Family Area Multiple Family Population' % of Total % of Total Housing Unitsz Land Use 2,3 Brooklyn Park 81.679 24.0% 13,450ac. 8.0% Elk River 24,891 12.4%4 24,702ac. 4.4% Maple Grove 66,903 10.9% 22,453ac. 10.5% Otsego 17,323 4.5% 18,916ac. 4.9%4 Plymouth 78,351 24.0% 22,595ac. 2.8% Rogers 12,991 9.9% 15,353ac. 11.2 St. Michael 17,835 4.7%4 23,300ac. -- Notes: 1. Minnesota State Demographers Office 2. Data is City's most recent Comprehensive Plan unless noted 3. Includes high density residential and mixed use land use categories 4. Medium -to -High Density Residential land use that allows TH and MF dwellings 5. Data is US Census ACS 2018 5 -Year Estimates Profile for attached +5 units Potential Sites. The attached map and table below outlines potential sites that may be considered for development of multiple family dwellings based on the land uses guided on the Future Land Use Plan, proposals that the City has received for potential development of multiple family dwellings, and City staff's own review of the Future Land Use Plan. This analysis is focused on sites located within the existing west and east sewer districts. Additional opportunities for multiple family development should be evaluated further as part of a future Comprehensive Plan update. Development of each of these sites would require application for zoning and subdivision approvals. Either through a request for a Zoning Map amendment or PUD Development Stage Plan, the City would have the ability to control the timing of development related to housing inventory, compatibility with surrounding land uses, and the adequacy of the City's service capacity to accommodate the proposed use. This approach is consistent with the growth management policies of the City's Interim Land Use Plan. Potential Multiple Family Opportunity Locations Area PID Acres' Est. DU3 Comments/Recommendations 1(W) 118-800-262201 5.62 97 Area guided for office-warehouse uses; alignment of future street extensions problematic for guided use; recommend change in land use to low-density residential with high density residential south of Kittredge Parkway at Kadler Avenue. Proximity to planned industrial and commercial uses for employment. 2(W) 118-184-000080 11.7 203 Guided/zoned for office-warehouse uses; concept plan 118-184-000150 4.8 83 for development of townhouses on west portion of 118-184-000170 10.1 175 Outlot H approved by PC, apartment use on east portion would be considered; concept review for Outlot 0 ongoing; Use of Outslot 0 with townhouses would provide desired land use transition consistent with Comprehensive Plan policies and would provide market support for planned commercial uses to the east. 3(W) 118-192-000010 6.7 116 Outlots are encumbered by wetlands that may reduce 118-184-000050 2.3 40 number of potential dwelling units. 4(W) 118-800-252200 22.6 393 Potential access limitation if 80th Street restricted to right-in/right-out; recommend guiding parcel for low-to- medium density residential. 5(W) 118-197-000030 25.9 451 Planned with Martin Farms for townhouse uses; 118-197-000050 20.3 353 recommend guiding east parcel for low-to-medium density residential uses (townhouses). 6(E) 118-500-274103 4.4 76 Abuts existing/planned low-to-medium density 118-500-274104 5.3 92 residential development without direct access to Quaday Avenue. Recommend amending to low-medium density residential. 7(E) 118-500-263200 13.6 585 Playfield owned by VFW; TH 101/CSAH 42 interchange 118-500-263201 20.0 problematic for commercial; abuts existing HD residential TH to south; recommend amend for mixed use development. 8(E) 118-260-001010 3.5 60 Guided/zoned for commercial. TH 101/CSAH 39 118-260-001020 2.5 43 overpass limits visibility and access not good for retail uses; Recommend guiding for mixed use commercial or high density residential use. 9 (E) 118-500-151100 40.3 702 Utilities are % mile south; portions of property are within floodplain; recommend guiding parcel (and property to the south) for mixed uses including low-medium, medium-to-high, and commercial uses to provide market support for area. 10 (E) 118-500-341100 39.9 4504 Requires extension of sewer west of TH 101 including 118-500-341101 1.1 construction of regional lift station; Quaday Avenue 118-500-341103 1.2 must be extended south of 70th Street (CSAH 38). 118-500-341105 13.0 Notes: (W) = West Sewer District / (E) = East Sewer District 1. Based on gross area unless noted 2. Estimated net area 3. 1 du/2,500sf. 4. Based on preliminary discussions with developer The issue of allowing multiple family land uses within commercial zoning districts has been requested by several property owners and developers of specific commercially zoned properties including Waterfront East, Riverbend North, Great River Centre of Otsego, and Kittredge Crossings. The Planning Commission supports establishing a new mixed use land use category and zoning district that allows for development of retail, service, and office uses mixed with high density residential use and subject to performance standards specific to that district. Establishment of a zoning district both in terms of location and performance standards is a legislative act for which the City has a great degree of discretion in defining. This approach has the benefit of clearly communicating to property owners, surrounding residents, and developers where the City intends to allow for multiple family dwellings together with commercial land uses within a single project area. Multiple family development may also be allowed for by PUD Districts where the City has also broad discretion in establishment of a PUD District acting in a legislative capacity to define the land uses allowed and the performance standards those land uses are required to meet. This authority allows the City to ensure that the PUD District and proposed land use will be compatible within the context of the site and supported by adequate transportation and utility infrastructure. Waterfront East, Riverbend North, Great River Centre of Otsego, and Kittredge Crossings are all PUD Districts that have been established or modified to allow for development of multiple family dwellings within planned commercial developments. However, because the PUD District is typically established in response to a proposal for development of a specific site, there can be a concern about consistency from PUD District to PUD District. Furthermore, establishment of a PUD District to allow a use otherwise not guided by the Comprehensive Plan or allowed under the current conventional zoning district designation may challenge the expectations of surrounding property owners as to the character of development that is to occur in the area. It is recommended that this approach be used only on a case-by-case basis for those developments with unique circumstances or a demonstrated community benefit. Performance Standards. Whereas the location for development is determined by the Comprehensive Plan and Zoning Map, the character of a land use is defined by the performance standards the City adopts as part of the Zoning Ordinance. Once established, compliance with these performance standards is an administrative review function to verify compliance. Multiple family residential land uses are allowed by the Zoning Ordinance within the R-7 District. The City may also establish a PUD District allowing for multiple family residential uses with performance standards based upon those required in the R-7 District and subject to modification on a project -by -project basis. Performance standards are best established as technical requirements where no interpretation is necessary and the requirement is applied consistently from property to property to address the basic functionality of a development, including the following: ■ Minimum Lot Area. The Zoning Ordinance requires multiple family uses to provide a minimum of 2,500 square feet of lot area per dwelling unit. The composition of the dwelling units within a development will have a direct effect on the intensity of the land use but this performance standard applies regardless of the mix of efficiency, 1, or 2 10 bedroom units within the building. Dwelling units with more than 2 bedrooms require an additional 300 square foot of lot area for each such apartment. Section 11-68-7 of the Zoning Ordinance also provides a schedule of allowances for reductions in minimum lot area requirements for multiple family developments based on a number of factors that can reduce the lot area per unit requirement to 1 dwelling unit per 2,000 square feet: o For each parking space provided under the living area of a building or underground, subtract three hundred (300) square feet. o If an adjacent site is zoned A-2, R-1, R-2, R-3, or R-4 residential use, add three hundred (300) square feet per unit for that portion of any building within two hundred feet (200') of said district. o If an adjacent site is zoned for commercial, industrial or institutional use, subtract three hundred (300) square feet per unit for that portion of any building within two hundred feet (200') of said district. o For each unit containing bedrooms in excess of two (2), add three hundred (300) square feet. o The maximum allowance which maybe subtracted under these allowances is five hundred (500) square feet per unit. The bulk of a proposed multiple family building is also limited by provisions established in Section 11-68-8 of the Zoning Ordinance. The floor area ratio (FAR) of a multiple family building is limited to 70 percent of the lot area (FAR = floor area/lot area). Building coverage within the R-7 District is also limited to 30 percent leaving 70 percent of the lot available for surface parking and open spaces. ■ Floor Area. Section 11-17-6 of the Zoning Ordinance requires the following minimum floor area for each multiple family dwelling unit to ensure an adequate living area: Multiple Family Dwelling Unit Minimum Floor Area Requirements # of Bedrooms Min. Floor Area Efficiency 500sf. 1 Bedroom 700sf. Each bedroom more than 1 +80sf. Senior Housing Efficiency 420sf. 1 Bedroom 520sf. 11 Building Height. Developers have indicated to City staff that building height is a crucial element in the financial feasibility of multiple family developments in that it is more cost effective to increase the size of a proposed building vertically than horizontally due to the higher costs of land and to expand the building foundation. Multiple family buildings within the R-7 Districts are allowed to be up to three stories or 35 feet in height. The Zoning Ordinance provides for a conditional use permit process whereby the height of a building within any zoning district can be increased above the district limit by increasing the front and side yard setbacks five feet for every additional story above the district limit. The existing conditional use permit for height increases above the district limit allows developers flexibility to propose additional building height. The current Zoning Ordinance standards allow for appropriate building heights and flexibility through a conditional use permit to accommodate proposals for increased building heights where appropriate. Off -Street Parking. The Zoning Ordinance requires 2.0 off-street parking stalls per multiple family dwelling unit to accommodate both residents and guest parking. As with the existing minimum lot area requirement, this performance standard does not account for variations in the number of bedrooms within each dwelling unit, which may be expected to have a corresponding effect on parking demand. City staff has found examples from other cities for establishment a graduated scale of parking requirements for multiple family uses based on the number of bedrooms per apartment, parking spaces for common areas, and guest parking. Consideration could be given to the number of required parking stalls for multiple family uses being based on bedrooms per unit using Institute of Transportation Engineers parking demand studies to ensure provision of adequate parking stalls based on the functional demands of the specific development. There is no requirement in the Zoning Ordinance for enclosed parking stalls as part of the off-street parking requirement for each multiple family building, which other cities require. Underground parking stalls are incentivized by a reduction in minimum lot area per unit rather than being a requirement as described above. However, a requirement for one enclosed parking stall may be appropriate from a land use efficiency standpoint, as well as a desirable amenity for multiple family housing in the City. ■ Exterior Materials. The Zoning Ordinance requires multiple family buildings to provide minimum of 50 percent of each exterior wall with a brick, stone, or stucco/EIFS finish. No elevation of a multiple family building may use more than 25 percent materials that are not brick, stone, stucco, or cement/wood fiber board. 12 The requirement encourages use of high durability materials for long-term maintenance and also to encourage an attractive exterior through high-quality materials and a variation on materials for each wall. These standards also require a higher quality exterior finish for multiple family buildings than are required for townhouse uses, which only require a minimum of 25 percent brick or stone on the front elevation. Rental Housing License. The City in 2006 adopted licensing requirements for rental housing within the City. At the time, dwelling units in Otsego consisted only of single family detached dwellings and townhouse dwellings. The US Census Bureau's 2019 American Community Survey estimates that 10.2 percent of the City's housing inventory are rental occupied. Multiple family developments in the form Guardian Angels Riverview Landing and Riverbend North caused the City to update Title 4, Chapter 6 of the City Code regulating rental housing to make modifications to adapt the City's rental housing performance standards to multiple family dwellings, as well as on-going administration of rental housing licensing. ■ Applicability. Section 4-6-2 of the City Code makes rental of any dwelling unit subject to the performance standards and licensing requirements of the City Code. The application of these requirements to the defined term of rental dwelling unit makes each single family, two-family, townhouse, or multiple family dwelling offered for rent subject to regulation including issuance of a license. Memory care or similar service type residential facilities are exempt from the provisions of the rental housing requirements of the City Code (including licensing). ■ License. Section 4-6-4 of the City Code establishes a requirement for a license to be issued by the City to operate a rental dwelling. The intent of the licensing requirement is to provide the City documentation and point of contract for the owner of the rental dwelling and to ensure that the rental dwelling is operated in accordance with established performance standards at the time of the initial license and on an on-going basis. Licenses are issued for a 1 year period and must be renewed by the property owner. Performance standards. Sections 4-6-7 (Maximum Density), 4-6-8 (General Provisions), 4-6-9 (Basic Standards for Equipment and Facilities), and 4-6-10 (Minimum Standards for Light and Ventilation) of the City Code establish minimum requirements for rental dwelling units. The writing of these standards is such so as to be applicable regardless if the rental dwelling is a single family, two-family, townhouse, or multiple family dwelling. Inspections. Section 4-6-4.D of the City Code requires an inspection by the Department of Building Safety prior to issuance of an initial rental license as well as for each renewal. The intent of the initial inspection is to ensure that the rental dwelling complies with the performance standards adopted as part of the City Code. 13 Inspection for renewal of a rental housing license is required every 3 years for single family dwellings and townhouses. For multiple family buildings, a rotating schedule of inspections of individual dwelling units within multiple family buildings is established. Common areas are inspected annually as part of this schedule. This approach allows the City the opportunity to inspect each rental dwelling unit on a regular schedule while also entering the building on an annual basis to evaluate overall maintenance. Section 4-6-5.A of the City Code establishes circumstances under which the City may require additional inspections outside of the license renewal process to ensure the rental unit is being operated in accordance with the requirements of the City Code. CONCLUSION The information outlined herein is provided for continued discussion with the Planning Commission at their meeting on 18 February 2020. City staff is seeking a recommendation from the Planning Commission to the City Council to initiate possible amendments to the Future Land Use Plan, Zoning Map and Zoning Ordinance as to the amount, location, and performance standards for multiple family dwellings in Otsego. Our office recommends that these specific actions be considered: Amend the Land Use Plan to establish a separate land use category for high density residential uses that allows for development of back-to-back townhouse or multiple family dwellings at a density of up to 21 dwelling units per acre (2,OOOsf./du) to be implemented under the existing R-7 District standards. 2. Amend the Land Use Plan to establish a land use category for mixed uses that allows for development of commercial land uses, row and back-to-back townhouses, or multiple family dwellings at a density of up to 21 dwelling units per acre (2,OOOsf./du) or higher under a new zoning district by conditional use permit to ensure land use compatibility and adequate utility and transportation infrastructure. Amend the Future Land Use Plan map for the portion of PID 118-800-262201 south of the extension of Kittredge Parkway to Kadler Avenue at 73rd Street from office use to medium -to -high density residential uses. 4. Guide Outlot H and Outlot 0, Kittredge Crossings for medium -to -high density residential land uses allowing development of townhouses and/or multiple family residential uses for Outlot H and single family villa, twin home, or townhouse uses for Outlot 0. Development of these land uses is subject to a PUD Development Stage Plan application to ensure proper land use intensity, site design, and compatibility with existing surrounding land uses. 14 5. Amend the Future Land Use Plan for PID 118-800-252200 from medium -to -high density residential uses to low-to-medium density residential land uses to allow for development of small lot single family dwellings, twin homes or row townhouses more compatible with existing development to the south and east. 6. Amend the Future Land Use Plan map to change the planned land use of PID 118-197- 000030 and PID 118-197-000050 from medium -to -high density residential uses to low- to-medium density land uses to allow for development of small lot single family dwellings, twin homes or row townhouses consistent with the original concept plan for Martin Farms. 7. Amend the Future Land Use Plan map to change the planned land use of PID 118-500- 274103 and PID 118-500-274104 from medium -to -high density residential uses to low- to-medium density land uses to allow for development of small lot single family dwellings, twin homes or row townhouses consistent with the development of Emerson Pointe and planned development to the north and west. 8. Amend the Future Land Use Plan map to change the planned land use of PID 118-500- 263200 and PID 118-263-000201 from future commercial to mixed use to allow for development of retail, office and/or high density residential uses. 9. Amend the Future Land Use Plan map to change the planned land use of PID 118-260- 001010 and PID 118-260-001020 from future commercial to mixed use to allow for development of retail, office and/or high density residential use of one or both lots based on access and visibility issues that limit commercial opportunities. 10. Amend the Future Land Use Plan map to change the planned land use of 118-500- 151100 (as well as the parcels to the south that are north of Otsego Waterfront) from future commercial to mixed use to allow for development of retail, office and/or high density residential use of one or both lots based on distance from the CSAH 39 and CSAH 42 intersection and existing low density residential uses to the west of CSAH 42. 11. Amend Section 21 of the Zoning Ordinance to establish a minimum requirement of 1 garage stall below the principal building for multiple family dwellings as well as dimensional requirements for enclosed garages. Adam Flaherty, City Administrator/Finance Director Tami Loff, City Clerk Ron Wagner, City Engineer David Kendall, City Attorney 15 ;t- y j City of Otsego, Minnesota Comprehensive Plan Land Use Concept Design industrial areas which allow for a variety of U sizes and bung arrangements Heavy industrial uses Infill existing areas wi new development - Major transportation facilities Medium density residential Natural features can provide excellent buffers between varying land uses Light industry and business campus Utilize a positive transition of compatible land uses between commercial development and residential neighborhoods Transition to curvalinear street patterns to respec natural features Utilize large lot platting along natural features and integrate recreations facilities where appropriate - Provide pedestrian connection from residential and recreation areas to the commercial core Community Facilities Natural Environment Plan Page 59 Minor Arterial Low density residential Establish recreational amenities in natural areas which provide unique spaces for residents while preserving the environment r�2 0 0 I0, ■ WO IN ■ IN Potential Multiple Family Site #1 Overview Legend Roads CSAHCL — CTYCL — MUNICL — PRIVATECL — TWPCL Highways Interstate — State Hwy — US Hwy City/Township Limits ❑ c ❑ t Parcels NW I (DNR) Potential Multiple Family Site #2 Overview Legend Roads — CSAHCL — CTYCL — MUNICL — PRIVATECL — TWPCL Highways Interstate State Hwy — US Hwy City/Township Limits ❑ C ❑ t Parcels NWI (DNR) Potential Multiple Family Site #3 Overview Legend Roads — CSAHCL CTYCL — MUNICL — PRIVATECL — TWPCL Highways Interstate — State Hwy — US Hwy City/Township Limits ❑ c ❑ t U Parcels NW I (DNR) Potential Multiple Family Site #4 Overview Legend Roads — CSAHCL CTYCL — PRIVATECL — TWPCL Highways Interstate — State Hwy — US Hwy City/Township Limits ❑ C ❑ t Cl Parcels L. NWI(DNR) Potential Multiple Family Site #5 Overview Legend Roads — CSAHCL — CTYCL — MUNICL — PRIVATECL — TWPCL Highways Interstate — State Hwy — US Hwy City/Township Limits ❑ c ❑ t Parcels NW I (DNR) Potential Multiple Family Site #6 Overview Legend Roads — CSAHCL CTYCL — MUNICL — PRIVATECL — TWPCL Highways Interstate — State Hwy — US Hwy City/Township Limits ❑ c ❑ t ❑, Parcels NW I (DNR) Potential Multiple Family Site #7 Overview Legend Roads CSAHCL CTYCL — MUNICL — PRIVATECL — TWPCL Highways Interstate — State Hwy — US Hwy City/Township Limits ❑ c ❑ t ED] Parcels NW I (DNR) Potential Multiple Family Site #8 Overview Legend Roads — CSAHCL — CTYCL — MUNICL — PRIVATECL — TWPCL Highways Interstate State Hwy — US Hwy City/Township Limits ❑ C ❑ t ❑❑ Parcels NW I (DNR) Potential Multiple Family Site #9 Overview Legend Roads CSAHCL CTYCL — MUNICL — PRIVATECL — TWPCL Highways Interstate — State Hwy — US Hwy City/Township Limits ❑ c ❑ t Parcels NW I (DNR) Potential Multiple Family Site #10 "- X118500274300 - 7ALL.ItiCT MW Aii�ij 118500352200 azo.. 110170000010 _ t �: Overview Legend Roads -- CSAHCL — CTYCL — MUNICL — PRIVATECL — TWPCL Highways Interstate State Hwy US Hwy City/Township Limits ❑ c ❑t Parcels NW I (DNR) Surrounding Land Uses Direction Land Use Plan Zoning Map Existing Use 8500U North MD/HD R-6 District Townhouse R-5 District Undeveloped East 1460ft- — — TH 101 South MD/HD Residential R-3 District Rural Single family Industrial A-1 District ' ; West • LD Residential A-1 District Undeveloped Overview Legend Roads -- CSAHCL — CTYCL — MUNICL — PRIVATECL — TWPCL Highways Interstate State Hwy US Hwy City/Township Limits ❑ c ❑t Parcels NW I (DNR)