ITEM 4.3 Multiple Family HousingOtSeTY
goF
MINNESOTA30
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT
REQUESTOR:
MEETING DATE:
Planning
City Planner Licht
14 September 2020
PRESENTER(s)
REVIEWED BY:
ITEM #:
City Planner Licht
City Administrator/Finance Director Flaherty
4.3 — Multiple Family Housing
i11" d9*M16ATJRiIs]L4I
MEETS:
THE CITY OF OTSEGO:
X
Is a strong organization that is committed to leading the community through innovative
communication.
Has proactively expanded infrastructure to responsibly provide core services.
Is committed to delivery of quality emergency service responsive to community needs and
expectations in a cost-effective manner.
X
Is a social community with diverse housing, service options, and employment opportunities.
Is a distinctive, connected community known for its beauty and natural surroundings.
AGENDA ITEM DETAILS
RECOMMENDATION:
City staff recommends acceptance of the Planning Commission recommendations regarding multiple family
housing and direction to initiate updates of the Comprehensive Plan and Zoning Ordinance.
ARE YOU SEEKING APPROVAL OF A CONTRACT?
IS A PUBLIC HEARING REQUIRED?
No
No
BACKGROUND/JUSTIFICATION:
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 meetings on 3 February 2020, 18
February 2020, and 8 September 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 Planning Commission has recommended the
following actions related to multiple family housing:
1. 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 (2,000sf./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.
3. 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.
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.
The Planning Commission discussed how the changes to the Comprehensive Plan and Zoning Ordinance
would reduce potential sites for multiple family dwellings to avoid potential compatibility issues and
provide necessary direction to developers as to the number and location where the City plans for multiple
family dwellings. The consensus of the Planning Commission is to use the Multiple Family Housing Study
to establish a benchmark that not more than 10 percent of the dwelling units within the City are to be
apartment. This benchmark would be adhered to through the interim land use plan policies where each
development proposal requires a Zoning Map amendment, which allows the City broad discretion to
evaluate such requests.
The process to amend the Comprehensive Plan and Zoning Ordinance to implement the recommendations
of the Multiple Family Housing Study would include a public hearing with notice sent to effected property
owners as well as adjacent property owners within 350 feet. City staff would propose to undertake the
amendments to the Comprehensive Plan and Zoning Ordinance during the remainder of 2020.
The Planning Commission voted 6-0 to recommend approval of the Multiple Family Housing Study and
proceed with amendments to the Comprehensive Plan and Zoning Ordinance as outlined above.
SUPPORTING DOCUMENTS ATTACHED: I
■ Planning Report dated 25 August 2020
POSSIRLF MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE ITTO APPEAR IN THE MINUTES:
Motion to accept the recommendations of the Planning Commission related to multiple family housing and
direct the Planning Commission to initiate amendments to the Comprehensive Plan and Zoning Ordinance
to implement these recommendations.
RI IIIf;FT INFORMATION
FUNDING: BUDGETED:
NA
TPC
The Planning Company
MEMORANDUM
3601 Thurston Avenue
Anoka, MN 55303
763.231.5840
TPC@PlanningCo.com
TO: Otsego Planning Commission
FROM: D. Daniel Licht, AICP
DATE: 25 August 2020
RE: Otsego — Comprehensive Plan; Multiple Family Uses
TPC FILE: 101.01
BACKGROUND
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 meetings on 3 February
2020 and 18 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.
2
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.
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
1 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.
Household Type
2000
2010
2018
Total
HH
% HH
W/
Children
% HH
W/Out
children
%Total
HH
% HH
W/
Children
% HH
W/Out
children
%Total
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.
11
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.
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%
1 100.0%
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.
5
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
R
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
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
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 3`d Outlot A
PUD
1161
Requires PUD Development Stage Plan
Great River Centre
PUD
190
To be built in 2 phases
Parkview Retail
R-7
72
Under construction
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 Units'
Land Use','
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
S. 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.
8
Potential Multiple Family Opportunity Locations
Area
PID
Acres'
Est. DU3
Comments/Recommendations
1(W)
118-800-262201
5.61
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 3 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 5 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 1 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 4-6-4.1) 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.
RECOMMENDATION
The information outlined herein is provided for continued discussion with the Planning
Commission at their meeting on 8 September 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:
1. 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.
3. 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.
POSSIBLE ACTIONS
A. Motion to recommend City Council approval of the Multiple Family Housing study and
initiate implementation of the recommendations outlined therein.
B. Motion to table.
15
Adam Flaherty, City Administrator/Finance Director
Tami Loff, City Clerk
Ron Wagner, City Engineer
David Kendall, City Attorney
16
City of Otsego, Minnesota Comprehensive Plan
Land Use Concept
Design industrial areas
which allow for a variety of
lot sizes and building
arrangements
Heavy industrial uses
Infill existing areas with
new development --
Major transportation
facilities
Medium density
residential
Natural features can
provide excellent
buffers between
varying land uses
Transition to curvalinear
street patterns to respe_c
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
Natural Environment Plan
Page 59
Light industry and
business campus
Community Facilities
Utilize a positive transition of
compatible land uses between
commercial development
and residential neighborhoods
Minor Arterial
Low density residential
Establish recreational amenities in natural
areas which provide unique spaces for
residents while preserving the environment
i/ I
Mm;�go
•1
k � 19
}}�� � l
'<�I •� ■1 1%11 �' ��/%/ \ "•1 • Z1f��••1��11yy
�tlllll \IIP
`� P
Vol
MIAMI
�/�
,���_�
►qS1/ �Illi0 °%�1_
■.�I�E ���rgdll,��� III • _
•.•r o`er: _���
I"�,��., i
%1
/'1
MINE
r
�101
1
ingi
[
/
li
1
'��■�
�. _ -�. q:.^I
01M
�__ r fie. n'.
mom■
��
/'
/'
`fI�II�,I���-
0
otc,".1 0
RINNa6eTA g
COMPREHENSIVE PLAN 2012
ADOPTED: 10 December 2012
AMENDMENTS:
Resolutlon 201"4 adopted 26 Oetober 2016
Resolutlon 2017.20 adopted 10 March 2017
Resolutlon 201849 adopted 23 July 2018
Resoiutlon 201"1 adopted 10 Oeeember 2018
TPC a ese a, FUTURE LAND USE DISCLAIMER
This product is for informational purposes and may not have been
prepared for, or beo suitable inform
legal, enlneevis , or surveying
Purposes. Users of NUinformatione to review thmnsuRthe
uka primary tlata aM Informatlon sources [o ascertain the usability
Hakanson Existing Multiple Family Opportunity Sites aMInformstion.
Anderson
2
1
3 4 5
0
LEGEND
OPlanning Dlstrids + Commercial
MD(HD Resldenlial
Olfm • Warehouse
10
ot10 NNESOTA
COMPREHENSIVE PLAN 2012
ADOPTED: 10 December 2012
� 9
AMENDMENTS:
Resolution 20156t adopted 13 March 2 17
ReiS
solution 101T.20 adopted 13 Mach r 20
Resolution 201a49 adopted 23 July 2015
Resolution 2019dt adopted 10 December 2019
I
6
� 7
m
TPC DISCLAIMER
FUTURE LAND USE Tht9 product is for Inormational purposes and may not have been
0 oss o.s t prepared for. orhe shiinfrmable W legal, engineering, or lr��Sft Users of R
� pdmary date and in ols atop ssource to ation sho scertahoconsul
the usability
I� � Hbr Potential Multiple Family Opportunity Sites of thelnformation. ""
o Afgo
HINN ES OTA
COMPREHENSIVE PLAN 2012
ADOPTED: 10 December 2012
AMENDMENTS:
Reaolutlon 201564 adopted 26 October ZO75
Resolution 201T-20 adopted 10 Mamh 2017
Resolution 2018. adopted 20 July 2018
Resolution 2018A1 adopted 1f December 2018
TPC c oa FUTURE LAND USE DISCLAIMER:
This product Is for informational purposes and may not have been
prepared for or be suitable for legal, hould.,I-or sulveyl th
purposes. Dears of fora information should review or oonsuk the
sorer primary data and inbnnelion sources to ascerteh the usabliy
Recommended Land Use Plan Amendments of#*InfermatIon.
Ande—
Potential Multiple Family Site #1
Overview
Legend
Roads
— CSAHCL
— CTYCL
— MUNICL
— PRIVATECL
— TWPCL
Highways
Interstate
— State Hwy
US Hwy
CitylTownship Limits
❑ c
❑ t
❑Q Parcels
NWI(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
❑0 Parcels
[ NWI(DNR)
Potential Multiple Family Site #3
61
�
�.I 198800262102'- -
-
- r
Surrounding Land Uses
3-, t •-
Direction
Lend Use Plan
ZoningMap Existing Use
North
Industrial
A-1 District Undeveloped
Institutional
INS District School
East
Commercial
A-1 District Undevelo ed
South
LO/MD Residential
PUD District Twin homes
West
WResidential
PUD District Single famil
118800262106
118254000.0,10 1118254001'010
1181920000�10��
A TQ
KAHLER CIR
N .�
- r
_T4TiH.ST-JNE
73,RD.L-N�LNE L] 'DFBI
i '1I .1 I
kWj-N KALLAND.CIR.NE
_ r
1184840001601118,1;84000150
® 148293000010 ; 118184
118184000080.
148298000010
Overview
Legend
Roads
— CSAHCL
— CTYCL
— MUNICL
— PRIVATECL
— IWPCL
Highways
Interstate
— State Hwy
— US Hwy
City/Township Limits
a C
t
❑� Parcels
NW I (DNR)
Potential Multiple Family Site #4
Overview
Legend
Roads
— CSAHCL
— CTYCL
— MUNICL
— PRIVATECL
— TWPCL
Highways
Interstate
— State Hwy
US Hwy
City/Township Limits
❑ c
❑ t
ED] Parcels
[ NWI(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
U 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
U Parcels
NWI(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
NWI (DNR)
Potential Multiple Family Site #9
Overview
Legend
Roads
— CSAHCL
CTYCL
— MUNICL
— PRIVATECL
— TWPCL
Highways
Interstate
— State Hwy
— US Hwy
City/Township Limits
❑ c
El t
Parcels
NW I (DNR)
Potential Multiple Family Site #10
Overview
Legend
Roads
— CSAHCL
— CTYCL
— MUNICL
— PRIVATECL
— TWPCL
Highways
Interstate
State Hwy
US Hwy
City/Township Limits
c
t
Parcels
NWI(DNR)