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Item 4.4 Northstar Riverwood0 otS'Y.F 0 MINNESOTA g DEPARTMENT INFORMATION Request for City Council Action ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE: Planning City Planner Licht 8 March 2021 PRESENTER(s) REVIEWED BY: ITEM #: City Planner Licht City Administrator/Finance Director Flaherty City Attorney Kendall 4.4 — Northstar Riverwood STRATEGIC VISION MEETS: THE CITY OF OTSEGO: Amendment. Is a strong organization that is committed to leading the community through innovative communication. IS A PUBLIC HEARING REQUIRED? Has proactively expanded infrastructure to responsibly provide core services. Held by Planning Commission on 16 February 2021 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. zoned PUD, Planned Unit Development District and undeveloped areas of the site adjacent to the Is a distinctive, connected community known for its beauty and natural surroundings. AGENDA ITEM DETAILS RECOMMENDATION: City staff recommends the City Council consider the application for a PUD Development Stage Plan Amendment. ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED? No Held by Planning Commission on 16 February 2021 BACKGROUND/JUSTIFICATION: Northstar Regional (Northstar) is a mental health provider that operates residential and out-patient treatment services at their Riverwood Campus located at 10990 95th Street (CSAH 39). The property is zoned PUD, Planned Unit Development District and undeveloped areas of the site adjacent to the Mississippi River are also within the Mississippi Wild Scenic Recreational River District established in accordance with Minnesota Rules. A PUD District amendment and PUD Development Stage Plan was approved by the City Council on 13 April 2020 allowing the residential and outpatient treatment program occupying three existing buildings on the Riverwood Campus. Northstar is proposing to expand the residential treatment program to utilize a fourth existing building (to be known as East Side House) on the property for patient intake. The Department of Building Safety issued a building permit for remodeling of the building on 16 December 2020. However, use of the East Side House building as part of the residential treatment program requires approval of a PUD Development Stage Plan amendment. The property owner, Little Tree Properties, LLC and Northstar have submitted application for a PUD Development Stage Plan amendment to allow use of the East Side House for the residential treatment program. A public hearing was held at the Planning Commission meeting on 16 February 2021 to consider the request. The public hearing was closed and the Planning Commission voted 7-0 to recommend City Council approval of the application. The Planning Report reviewing the request has been updated to address the additional information presented at the public hearing and City staff prepared findings -of -fact and decision for approval of the application for consideration at the City Council meeting on 22 February 2021 The City Council reviewed the application at their meeting on 22 February 2021. Dr. Hal Baumchen and Northstar CEO Jason Vanderscoff were present via Zoom to provide information and address questions and comments of the City Council. The City Council tabled the application to their meeting on 8 March 2021 and directed City staff to prepare findings of fact and decision to deny the request. SUPPORTING DOCUMENTS ATTACHED: I Findings of Fact and Decision (Approval) Findings of Fact and Decision (Denial) POSSIBLE MOTIONS PLEASE WORD MOTION AS YOU WOULD LIKE ITTO APPEAR IN THE MINUTES: Motion to approve a PUD Development Stage Plan for Little Tree Properties LLC and Northstar Regional Riverwood Campus subject to the conditions as stated on the findings of fact and decision as presented. -or- Motion to deny the application for a PUD Development Stage Plan for Little Tree Properties, LLC and Northstar Regional Riverwood Campus in accordance with the findings of fact and decision as presented. BUDGET INFORMATION FUNDING: BUDGETED: N/A 0 CITY Ot�ego MINNESOTA V APPLICANT: Little Tree Properties LLC / NorthStar Regional 17 Feb 21 FINDINGS & DECISION (APPROVAL) PUD Development Stage Plan APPLICATION: Request for amendment of the PUD Development Stage Plan governing the Northstar Riverwood Campus. CITY COUNCIL MEETING: 8 March 2021 FINDINGS: Based upon review of the application and evidence received, the Otsego City Council now makes the following findings of fact: A. The legal description of the properties is Lot 1, Block 1, Riverwood Conference Center, City of Otsego, Wright County, Minnesota. B. The property lies within the Rural Residential Preserve Area and is guided for commercial uses by the 2012 Otsego Comprehensive Plan, as amended. C. The property is zoned PUD, Planned Unit Development District in accordance with the Ordinance adopted by the City Council on 9 September 1991 and most recently amended on 13 April 2020. D. The applicant is proposing an amendment to the PUD Development Stage Plan approved on 13 April 2020 to use of the "East Side House" building as part of the 245 G residential and outpatient treatment facility licensed by the Minnesota Department of Human Services. E. The Planning Commission and City Council must take into consideration the possible effects of the request with their judgment based upon (but not limited to) the criteria outlined in Section 11-3-2.F of the Zoning Ordinance: 1. The proposed action's consistency with the specific policies and provisions of the Otsego Comprehensive Plan. Finding: The subject site is guided by the 2012 Comprehensive Plan for commercial uses. This land use designation is unique north of CSAH 39 and reflects the prior commercial lodging facility allowed under the provisions of a PUD District originally approved in 1991. The PUD District was amended in 2020 to allow for use of the property as a residential treatment program as a more viable long-term use. 2. The proposed use's compatibility with present and future land uses of the area. Finding: The East Side House is setback from the closest property lines eight feet to the east and 85 feet to the south. There are existing mature trees in the yards between the East Side House and property lines, but they provide a canopy and not screening. Provisions for the second story windows to be frosted and installation of privacy fencing along the east property line and surrounding the patio will provide screening to address potential compatibility issues. 3. The proposed use's conformity with all performance standards contained within the Zoning Ordinance and other provisions of the City Code. Finding: The use of the property is to comply with the requirements of the Zoning Ordinance, including applicable provisions of the approved PUD District. 4. Traffic generation of the proposed use in relation to capabilities of streets serving the property. Finding: The proposed use of East Side House as part of the residential treatment program will not increase the overall capacity of the program. As a result, the changes to the program to include East Side House is not expected to affect traffic generation. 5. The proposed use can be accommodated by existing public services and facilities and will not overburden the City's service capacity. Finding: The proposed use of East Site House for the residential treatment program will not affect the City's service capacities. The planning report dated 12 February 2021 and addendum report dated 17 February 2021 prepared by the City Planner, The Planning Company LLC, are incorporated herein. G. The Otsego Planning Commission conducted a public hearing at their regular meeting on 16 February 2021 to consider the application, preceded by published and mailed notice; based upon review of the application and evidence received, the public hearing was closed and the Planning Commission recommended by a 7-0 vote that the City Council approve the request based on the aforementioned findings. DECISION: Based on the foregoing information and applicable ordinances, the request is hereby APPROVED, subject to the following conditions: The conditions of the PUD Development Stage Plan approved by the City Council on 13 April 2020 remain in full force and effect unless specifically modified herein. The East Side House shall be constructed and operated as described by the plans and materials on file with the City except as specifically modified herein. Use of the property as a 245 G residential and outpatient treatment facility shall be limited to 160 persons, including not more than: a. 76 residential clients within the East Side House and Courtyard buildings. b. 84 outpatient clients with overnight lodging within the Bluff House building. 4. Northstar staff shall be present within the East House building at all times and video monitoring shall be provided for all common areas, stairwells, exterior doors or areas other than designated rooms designated on the submitted plans for sleeping or treatment. 5. Exterior access: Primary building ingress/egress to East Side House shall be via the secured vestibule through the door on the west elevation. b. The exterior door on the south and second door on the west elevation shall have fire exit alarm equipment installed and be used only for emergency exit. C. The exterior door on the north shall be used only for access to an outdoor patio to be shown on a revised site plan, which shall be enclosed by an 8ft. privacy fence, subject to review and approval of the Zoning Administrator. 6. The site plans shall be revised to relocate the outdoor patio to the west side of the building, subject to review and approval of City staff. 7. Off -Street Parking: There shall be a minimum of 121 off-street parking stalls in conformance with Section 11-21- 7 of the Zoning Ordinance. The number of required off-street parking stalls may be reduced subject to approval of the Zoning Administrator based on floor plans showing office and meeting room areas to be calculated at a ratio of one parking stall per 200 square feet. C. Plans for repaving the existing parking area and expansion drive aisle and parking area adjacent to the East Side House shall be subject to review and approval of City staff. 8. All exterior light fixtures for the East Side House shall comply with Section 11-16-6 of the Zoning Ordinance, subject to review and approval of the Zoning Administrator. 9. Windows within the second story sleeping rooms shall be frosted so as to be opaque, subject to review and approval of the Zoning Administrator. 10. An 8 -foot privacy fence shall be installed along the east property line from the existing privacy fence north to connect to the new maintenance building subject to review and approval of the Zoning Administrator. 11. A plan for security camera coverage of the East Side House shall be submitted and is subject to review and approval of the Zoning Administrator. MOTION BY: SECOND BY: ALL IN FAVOR: THOSE OPPOSED: ADOPTED by the City Council of the City of Otsego this 8th day of March, 2021. CITY OF OTSEGO By: Jessica L. Stockamp, Mayor Attest: By: Audra Etzel, City Clerk 4 0 OtCI�eooF MINNESOTA V APPLICANT: Little Tree Properties LLC / NorthStar Regional 23 Feb 21 FINDINGS & DECISION (DENIAL) PUD Development Stage Plan APPLICATION: Request for amendment of the PUD Development Stage Plan governing the Northstar Riverwood Campus. CITY COUNCIL MEETING: 8 March 2021 FINDINGS: Based upon review of the application and evidence received, the Otsego City Council now makes the following findings of fact: A. The legal description of the properties is Lot 1, Block 1, Riverwood Conference Center, City of Otsego, Wright County, Minnesota. B. The property lies within the Rural Residential Preserve Area and is guided for commercial uses by the 2012 Otsego Comprehensive Plan, as amended. C. The property is zoned PUD, Planned Unit Development District in accordance with the Ordinance adopted by the City Council on 9 September 1991 and most recently amended on 13 April 2020. D. The applicant is proposing an amendment to the PUD Development Stage Plan approved on 13 April 2020 to use of the "East Side House" building as part of the 245 G residential and outpatient treatment facility licensed by the Minnesota Department of Human Services. The Planning Commission and City Council must take into consideration the possible effects of the request with their judgment based upon (but not limited to) the criteria outlined in Section 11-3-2.F of the Zoning Ordinance: The proposed action's consistency with the specific policies and provisions of the Otsego Comprehensive Plan. Finding: The subject site is guided by the 2012 Comprehensive Plan for commercial uses. This land use designation is unique north of CSAH 39 and reflects the prior commercial lodging use allowed under the provisions of a PUD District originally approved in 1991. The PUD District was amended on 13 April 2020 to allow for use of the property as a residential treatment program involving remodeling of three buildings upon the subject site designated as the Courtyard Building, Bluff House, and Timothy's Restaurant as a more viable long-term use that is limited in scale and would be compatible with surrounding rural uses. The proposed use's compatibility with present and future land uses of the area. Finding: The proposed use of East Side House for the residential treatment program expands the number and area of buildings involved in the residential treatment program beyond the three buildings identified in the PUD Development Stage Plan approved on 13 April 2020. The East Side House is setback from the closest property lines approximately eight feet to the east and 85 feet to the south. There are existing mature trees in the yards between the East Side House and property lines, but they provide a canopy and not screening. The expansion of the residential treatment program to a fourth building and the proximity of the proposed East Side House to adjacent properties, specifically the east property line, would create compatibility issues between the subject site and surrounding rural and agricultural properties. The proposed use's conformity with all performance standards contained within the Zoning Ordinance and other provisions of the City Code. Finding: The use of the property is to comply with the requirements of the Zoning Ordinance, including applicable provisions of the PUD District and PUD Development Stage Plan approved by the City Council on 13 April 2020. The proposed expansion of the residential treatment program to the East Side House does not comply with the occupancy of only three buildings allowed by the PUD Development Stage Plan approved by the City Council on 13 April 2020. 4. Traffic generation of the proposed use in relation to capabilities of streets serving the property. Finding: The subject site is accessed from 95th Street (CSAH 39), which is designated by the Transportation Plan. The changes to the residential treatment program to include East Side House is not expected generate traffic beyond the capacity of CSAH 39. The proposed use can be accommodated by existing public services and facilities and will not overburden the City's service capacity. Finding: The proposed use of East Site House for the residential treatment program will not affect the City's service capacities. The planning report dated 12 February 2021 and addendum report dated 17 February 2021 prepared by the City Planner, The Planning Company LLC, are incorporated herein. G. The Otsego Planning Commission conducted a public hearing at their regular meeting on 16 February 2021 to consider the application, preceded by published and mailed notice; based upon review of the application and evidence received, the public hearing was closed and the Planning Commission recommended by a 7-0 vote that the City Council approve the request. DECISION: Based on the foregoing information and applicable ordinances, the request is hereby DENIED. 2 MOTION BY: SECOND BY: ALL IN FAVOR: THOSE OPPOSED: ADOPTED by the City Council of the City of Otsego this 8th day of March, 2021. CITY OF OTSEGO By: Jessica L. Stockamp, Mayor Attest: By: Audra Etzel, City Clerk 3