Item 3.2 BancorITEM 3_2
TPC
The Planning Company
PLANNING REPORT
3601 Thurston Avenue
Anoka, MN 55303
763.231.5840
TPC@PlanningCo.com
TO: Otsego Planning Commission
FROM: D. Daniel Licht, AICP
REPORT DATE: 15 July 2021
120 -DAY DATE: 18 September 2021
RE: Otsego—The Bancorp Group, Inc.; Comprehensive Plan amendment
TPC FILE: 101.02
BACKGROUND
The Bancorp Group, Inc., on behalf of owner LTH Kalland LLC, has submitted a concept plan for
development 119 single family lots and a lot for expansion of Kaleidoscope Charter School.
The property IS located west of Labeaux Avenue (CSAH 19) and south of 80th Street comprised
of Lots 1 and 2, Block 2, Dara Glen and two unplatted parcels totaling 78.95 acres. The 2012
Comprehensive Plan guides the property for industrial land uses. The developer is applying for
an amendment of the 2012 Comprehensive Plan Future Land Use Plan map to guide the
property for Low Density Residential and Institutional Land Uses to allow for development of
the proposed concept plan. A public hearing to consider the application has been noticed for
the Planning Commission meeting on 19 July 2021.
Exhibits:
■ Site location map
■ Developer's narrative
■ Kaleidoscope Charter School Findings of Fact and Decision
■ Concept Plan
■ Future Land Use Plan map
ANALYSIS
Comprehensive Plan. The Comprehensive Plan is intended to serve as a guide to residents,
property and business owners, and developers in planning for potential developments based on
the City's goals and expectations for future growth. The Comprehensive Plan also provides a
basis for the Planning Commission and City Council to evaluate development requests and how
they relate to the community's vision for Otsego. Amendment of established, geographic land
use designations is to be approved only when it can be demonstrated by those making the
request that the modifications are in the best long-term interest of the community and
consistent with the policies of the Comprehensive Plan. Short-term market potential is not
justification to amend the Comprehensive Plan to allow uses or activities not guided for. The
City also implements 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.
Future Land Use. The Future Land Use Plan consists of both narrative text and graphic
illustration of anticipated land uses to occur in Otsego over time in consideration of
forecasted growth and the Urban Service Staging Plan for provision of necessary
supporting infrastructure and services. The property has been guided for industrial
development since 2004. LTH Kalland LLC acquired the property from Shamrock
Development, Inc. on 7 June 2019 with the understanding that the Comprehensive Plan
guides the property for future industrial land use.
The goal of the Future Land Use Plan is to provide for development of a cohesive land
use pattern that ensures compatibility and functional relationships among activities.
The property abuts areas guided for residential uses to the south within Kittredge
Crossings. The areas east of the property are guided for future Commercial
development abutting Labeaux Avenue (CSAH 19). The area west of the property
extending to Kadler Avenue is planned for future Industrial development. The Future
Land Use Plan guides the property north of 80t' Street for future Office Park uses.
Kaleidoscope Charter School acquired its current property from Shamrock Development,
Inc, and was approved for construction in 2008 as a transitional land use between
Kittredge Crossings and planned industrial development of the property.
Expansion of Kaleidoscope Charter School as shown on the concept plan would be
consistent with the findings adopted by the City Council approving the initial school
facility and would be allowable under the current industrial land use guided for the
subject site. Consideration of an amendment to allow residential land use within the
subject site as shown on the overall concept plan as presented with residential land uses
would establish an area of residential use between industrial and commercial land uses
having an arrangement not consistent with the desirable pattern for land uses
transitioning in intensity. However, expansion of Kaleidoscope Charter School and a
change to residential use only south of future 77' Street using the major collector street
as a physical barrier to transition to industrial uses would be acceptable.
2
The Comprehensive Plan promotes industrial development in order to create more
employment opportunities and expand the tax base within Otsego as part of a growth
management and economic development strategy. Attracting, retaining, and expanding
businesses and industry is a priority of the Comprehensive Plan. Opportunities for
development of industrial land uses is more site specific than residential development
dependent upon access to utility and regional transportation infrastructure, as well as
level site conditions free of wetlands or other physical barriers.
The Comprehensive Plan designates three areas for industrial development within
Otsego located on either side of 1-94 within the West Sewer District, adjacent to the
south segment of TH 101 within the East Sewer District, and an area within the Urban
Service Expansion area in central Otsego. Utilities are generally available to the
planned industrial areas within the sewer districts. The central industrial area has been
designated as a long-range development area for when a planned interchange at 1-94
and Nabor Avenue and a roadway connection between CR 137 and the interchange is
completed. The table below indicates the percentage area of land guided within the
City for industrial and residential land uses:
Land Use
Acres
Percentage
City Area
Industrial
Sewer Districts
1,365ac.
7.2%
11.5%
Urban Service Expansion Area
800ac.
4.3%
Residential
10,046ac.
53.19/.
There is 920 acres of land within the current West Sewer District guided for future
residential land uses, the majority of which is planned for single family dwellings. Based
on an assumed net density of 2.5 acres, this is potential for up to 1,840 residential
dwellings. The City has averaged 275 new single family dwellings and 319 total new
dwellings annually over the last five years. For the last three years, the average number
of new dwellings has been 320 single family dwellings and 390 total dwellings annually.
Absorption of the current undeveloped residential land within just the West Sewer
District at the current average annual rates of new residential construction would take
approximately five years. The area of land guided for industrial uses within the Sewer
District is also many years of supply. This information emphasizes that recognizing the
Future Land Use Plan is a long-range vision for how Otsego is to develop, there is no
imperative for the City to change the guided land use of the property.
■ Transportation Plan. The property abuts 80th Street on the north and Kalland Avenue
terminates within the portion of the subject site. The layout of 77th Street and Kalland
Avenue for the proposed concept plan reflects the Wright County Long Range
Transportation Plan and Transportation Plan element of the Otsego Comprehensive
Plan:
o The concept plan illustrates construction of 77th Street from Labeaux Avenue
(CSAH 19) west through the subject site to the west line of the property.
Kalland Avenue would be extended north through the subject site to intersect
801h Street. A roundabout as recommended by City staff is shown at the
intersection of 77th Street and Kalland Avenue.
o Access to CSAH 19 is to be limited based on spacing requirements for a minor
arterial roadway. The City and Wright County have agreed that 73r6 Street, 77th
Street, and 85th Street will be intersections (likely roundabouts) with full turning
movements for each leg. Existing 80th Street is currently a full intersection at
Labeaux Avenue (CSAH 19), but will be restricted to three-quarter (no left turns
from 80th Street onto CSAH 19) or right-in/right-out intersection in the future.
o The Transportation Plan designates 77th Street as a major collector street
extending west of Labeaux Avenue to Kadler Avenue. A potential compatibility
issue caused by the residential uses shown on the concept plan is that traffic,
including semi -truck traffic, from the industrial land uses planned to the west of
the subject site using 77th Street will bisect the neighborhood travelling to or
from CSAH 19. The arrangement of the proposed residential land uses between
planned industrial and commercial land uses inconsistent with the policy of the
Comprehensive Plan that major streets are to border not divide neighborhoods.
o Extension of Kalland Avenue with connection to Labeaux Avenue via 77th Street
as shown on the concept plan would benefit the area transportation system by
providing an alternative to 70th Street for access to the Kittredge Crossings
neighborhood.
■ Parks System Master Plan. Acquisition of land for City park purposes is guided by the
Parks System Master Plan as an element of the 2012 Comprehensive Plan.
Neighborhood parks are to be between five to 20 acres in areas to serve an area
approximately one-half mile in diameter. Kittredge Crossings Park is within 2,300 feet
of walking distance from the south line of the property. The Parks Master Plan also
acknowledges that school facilities serve a public park function.
The subject site is within the park service areas of both Kittredge Crossings Park and
Kaleidoscope Charter School meaning that acquisition of land for neighborhood parks
within the concept plan would not be a City objective. The City holds an easement over
the open field and use of the parking area west of the existing Kaleidoscope Charter
School building for park purposes with the intent of developing fields in the future for
organized play. Based on the Industrial use guided by the Future Land Use Plan for the
subject site, the only acquisition anticipated by the Parks System Master Plan from the
subject site would be land west of the existing Kaleidoscope Charter School property for
the purpose of expanding the playfield area.
C!
The proposed concept plan does not reflect the City's intended acquisition of additional
park land west of Kaleidoscope Charter School. The concept plan does illustrate several
park areas within the development including, a greenway trail corridor surrounding the
creek along the south line of the property. The developer indicates that these areas are
to be private parks maintained by a homeowners association.
The Subdivision Ordinance requires that wetland and wetland buffers be deeded to the
City as part of the stormwater system. To this end, the area surrounding the wetlands
and creek along the south line of the property would be acquired by the City with either
an industrial or residential development. The feasibility of a trail corridor within this
area would need to be further evaluated. With or without a trail, the area surrounding
the wetlands and stormwater basins within the outlot will be protected as permanent
open space creating separation between the property and Kittredge Crossings under
either and industrial or residential development scenario.
The concept plan illustrates trails along 77th Street and Kalland Avenue. A trail is
required by the Subdivision Ordinance on one side of 77th Street as a major collector
street. A trail on Kalland Avenue from 77th Street to Kaleidoscope Charter School as
shown on the concept plan is appropriate to provide access to the school facility and
Kittredge Crossings as part of the overall trail system. We would recommend the
concept plan be revised to change the trail shown north of 77th Street on Kalland
Avenue to a sidewalk on the east side of the street along the front of the single family
lots. A five-foot wide concrete sidewalk should also be provided from the northeast
corner of the 77th Street/Kalland Avenue intersection east to the east plat line to
connect to the sidewalk that would be required on that side of the roadway with the
guided commercial development of the parcel to the east.
Utilities. The subject site is within the West Sewer District established by the 2012
Comprehensive Plan serviced by the West Wastewater Treatment Facility. The W-WWTF has
only 550 Residential Equivalent Connections (RECs) of capacity available and the City has
initiated an expansion that is expected to be substantially complete by 2024. There are 403
residential dwellings preliminary plated, requesting preliminary plat approval, or preparing
plans for preliminary plat approval. With the land supply available to meet anticipated demand
for residential development and limits on capacity at the W-WWTF, approval of a the
Comprehensive Plan amendment to add even more residential land is premature.
Neighborhood Meeting. The developer hosted a neighborhood meeting at Kaleidoscope
Charter School on 14 July 2021. The property owner and Executive Director of Kaleidoscope
were present along with the City Planner and City Engineer, who were observing. Ten people
attended the meeting from Kittredge Crossings and the properties west of the subject site.
The developer reviewed the concept plan. Questions from those in attendance involved area
stormwater drainage and preservation of the creek and wetlands along the south line. The
developer and Kaleidoscope were also asked if their projects were connected, which was
addressed as the two projects not being dependent on the other.
RECOMMENDATION
The subject site has been guided for industrial development since the 2004 Comprehensive
Plan update. The request to amend the uses guided by the Future Land Use Plan is based on the
property owner's own short-term interest since acquiring the property in 2019 to develop the
subject site within the current market for residential land uses. However, the proposed
amendment is not consistent with the policies of the Comprehensive Plan related to land use,
economic development, and growth management. Consideration of an amendment to the
Future Land Use Plan adding more supply to the land available for residential development is
also premature given the existing acres available for residential development within the West
Sewer District that exceeds both the available capacity of the W-WWTF and the absorption rate
for residential construction within the entire City. City staff recommends that the application
to amend the Comprehensive Plan be denied for these reasons. The Planning Commission may
consider an alternative action to recommend approval of a Comprehensive Plan amendment
guiding the area south of future 77th Street for residential uses with industrial uses remaining
north of future 771h Street to address transition and compatibility issues of sandwiching
residential development between planned commercial and industrial development.
POSSIBLE ACTIONS
A. Motion to recommend approval of a resolution amending the Comprehensive Plan
guiding the subject property for Low Density Residential and Institutional land uses as
presented on the concept plan.
B. Motion to recommend the application for a Comprehensive Plan amendment be denied
based on a finding that the request is inconsistent with the policies of the 2012
Comprehensive Plan.
C. Motion to table.
C. Adam Flaherty, City Administrator/Finance Director
Audra Etzel, City Clerk
Ron Wagner, City Engineer
David Kendall, City Attorney
Ce
Site Location Map
Overview
Legend
Roads
— CSAHCL
— CTYCL
— MUNICL
— PRIVATECL
---- TWPCL
Highways
Interstate
— State Hwy
— US Hwy
City/Township Limits
❑ c
❑ t
Parcels
Torrens
The Bancor Group, Inc
June 1, 2021
Dan Licht, City Planner
City of Otsego
13400 90th Street NE
Otsego, MN 55330
Dear Mr. Licht,
Below is our narrative for our Comprehensive Plan Amendment request and concept plan review.
Request:
B ancor
tL
Request for Comprehensive Plan Amendment to change the guide plan from Industrial to Low Density
Residential.
Property Information:
• Acres — 85 acres
• Comprehensive Plan Guiding
o Industrial
• Current Zoning
o Primarily A-1— Rural Agricultural
0 5 Acres in two parcels Zoned 1-2 General Industrial
Concept Plan:
• 119 Single Family Units
• 10 acre parcel for future school expansion
• Neighborhood connected by trails system to 4 pocket parks
• Includes two minor collector connections:
o An extension of Kalland to 80" Street
o An extension of 77th street from CR 19 to Kalland and to west boundary.
Background:
The Bancor Group is a primarily single-family residential development group. We have completed
project both large and small from 6 units to over 1,000. Our communities have accommodated
everything from starter homes up to multi -million -dollar Lake Minnetonka homes. No matter what
product range we are in, our desire is to design neighborhoods that make sense and that we can be
proud of. We believe that this location next to and around the school is a great location for a single-
family neighborhood and we outline our rationale for a guide plan change below.
1
The Bancor Group, Inc
Banco -,r
tri
We are aware that there may be a sewer capacity restriction in this area for the near future. Staff has
told us that the process for expanding sewer has started but that the exact date is not yet known, they
were thinking it could be 2024. We are aware of this and if the Comprehensive Plan Amendment is
passed that we would plan on a Plat Approval in mid to late 2022, construction in 2023 where sales
would not get rolling until 2024. This is a rough timeline that we can refine as we know more.
Rationale for Request:
1. General Oversupply of Industrial Land
City has almost 2,000 acres currently guided industrial. Of that area about 340 acres are
currently zoned and roughly 270 acres are developed as industrial. Leaving 20% of the existing
land zoned for industrial available as well as 85% of all areas guided for industrial available for
future development. Overall, the City has developed 13% of its total inventory of land guided
and zoned for industrial uses. If you look along 194 in Rodgers, St. Michael and into Maple Grove
you will see similar situations where there are significant areas of available and guided industrial
land inventory.
In comparison 80% of the area guided for Low Density Residential is currently zoned low density
residential or has been developed into some type of residential use. While there is still some
supply of residential land, on a percentage basis, it is limited in comparison to the amount of
land available for industrial uses.
2. Residential in this location is more compatible with school and surrounding uses
While schools have at times been located in industrial areas, they are generally located in and
more suited to residential areas. We have a letter of intent from the school regarding their
desire to purchase 10 acres for a school expansion. We believe the school is an important City
asset and that facilitating this change in the guiding and accommodating the school's expansion
helps to keep a vibrant asset in the community.
Kaleidoscope Charter School has been supportive of our effort to rezone the land to residential
because they understand the positive impact such a move would have on their program.
Additionally, a developed neighborhood surrounding the school would also allow Kaleidoscope
to be more integrated with the community and the city.
3. Development here helps to provided needed transportation connectivity sooner
As mentioned earlier, there is ample supply of industrial land along the 1-94 corridor.
Development of this area as industrial could be many years off. With a guiding change, once the
sewer capacity is available, single family development here will provide need transportation
connections to CR 19 from Kalland as well extending Kalland to 80th Street to the north.
4. Great Development Plan
We think we are proposing a great development plan. One that uses and adds to the trails along
the two minor collector roadways to connect the neighborhood to each other, to the school and
to the four HOA maintained pocket parks proposed in the development.
The Bancor Group, Inc
Bancor
aL
5. Helps nearby commercial areas
It appears, based on the guide plan, that Otsego would also like to foster additional commercial
development in this area. Having some additional rooftop will increase the changes that this
area can support some additional commercial development.
Conclusion:
As a city grows and expands there are bound to be requests such as ours. While at first, they may
appear to be untimely, we ask you to consider the benefit to the city.
You have..
• two property owners who want to collaborate in creating an attractive neighborhood
• a proposed use that is more compatible with the adjoining school
• an opportunity to help the school to expand and remain a vital asset to the community
• additional residents to support local businesses and
• a change that will have little to no impact on the amount of future industrial/commercial
development in the city since 85% of the land guided industrial/commercial remains
undeveloped at this time.
We appreciate your reviewing our application and we look forward to hearing your thoughts.
Paul Robinson
VP, Land Development Manager
3
CITY OF
0T S E G 0
WRIGHT COUNTY, MINNESOTA
APPLICANT: KCS Building Company.
09-17-07
FINDINGS & DECISION
ZONING MAP APPROVAL
APPLICATION: Request for approval of a Zoning Map amendment rezoning land from 1-2 District to
INS District for development of a charter school facility.
CITY COUNCIL MEETING: 24 September 2007
FINDINGS: Based upon review of the application and evidence received, the City Council of the
City of Otsego now makes the following findings of fact:
The legal description of the property is Lot 1, Block 1 and Outlot A, Dara Glen Addition,
City of Otsego, Wright County, Minnesota.
The subject site is guided by the Comprehensive Plan for future Industrial uses within the
west Sanitary Sewer District.
The subject site is zoned 1-2, General Industrial District. The applicant is requesting a
rezoning to INS District for the purpose of developing a charter school facility.
Consideration of the application is to be based upon (but not limited to) the criteria set forth
by Section 20-3-2.F of the Zoning Ordinance:
The proposed action's consistency with the specific policies and provisions of the
official City Comprehensive Plan.
Finding: The Comprehensive Plan speaks to provision of facilities and services
necessary to support continued community growth. The development of additional
school facilities has been identified as an important need in Otsego. The proposed
charter school is an accredited educational program that will respond to the
educational needs of Otsego residents and the Elk River School District consistent
with the intent of the Comprehensive Plan.
2. The proposed use's compatibility with present and future land uses of the area.
Finding. The table below describes existinglplanned adjacent uses.
Direction
Land Use Plan
Zoning Map
Existing Use
North
Industrial
A-1 District
Single Family
Agriculture
South
Low Density Residential
PUD District
Single Family
Medium/High Density Residential
Multiple Family
East
Commercial
A-1 District
Single Family
Agriculture
West
Industrial
A-1 District
Single Family
A riculture
The proposed charter school will provide for an appropriate transition between
residential uses in Kittredge Crossing and industrial uses planned north of that
1
development. Existing trees and wetland areas along between the subject site and
Kittredge Crossings aid in buffering the residential and school uses and the proposed
use is anticipated to be compatible at this location with surrounding uses.
3. The proposed use's conformity with all performance standards contained in the
Zoning Ordinance (i.e., parking, loading, noise, etc.).
Finding: The proposed PUD-CUP/Preliminary and Final Plat will comply with
applicable requirements of the Zoning Ordinance, Subdivision Ordinance and
Engineering Manual except for flexibilities approved with the development plans.
4. Traffic generation by the proposed use in relation to the capabilities of streets serving
the property.
Finding: The subject site has access points to public streets and is within a quarter -
mile of collector streets to appropriately distribute and accommodate traffic generated
by the proposed development.
5. The proposed use can be accommodated by existing public iervices and facilities
and will not overburden the City's service capacity.
Finding: The applicant will construct trunk sanitary sewer and water utilities that will
provide service to the subject site. As the subject site is within the City's defined
growth area, the development can be accommodated within existing City services.
E. The Planning Report dated 29 August 2007 prepared by the City Planner, Northwest
Associated Consultants, Inc_, is incorporated herein.
The Engineering Review dated 29 August 2008 p repared by the City Engineer, Hakanson
Anderson Associates, Inc, is incorporated herein.
G. The Otsego Planning Commission conducted a public hearing attheir regular meeting on 4
September 2007 to consider the application, preceded by published and mai led notice; upon
review of the application, and other evidence, the public hearing was closed and the
Planning Commission recommended by a 6-0 vote that the City Council approve the request
based on the findings outlined above.
DECISION: Based on the foregoing information and applicable ordinances, the application is
hereby APPROVED.
MOTION BY: CM Vern Heidner
SECOND BY: CM Jessica Stockamp
ALL IN FAVOR: Mayor Larry Fournier; Councilmembers: Vern Heidner,
Jessica Stockamp, Mark Thorsted and Tom Darkenwald
r
THOSE OPPOSED: NONE
ADOPTED by the Otsego City Council this 24th day of September, 2007.
CITY OF OTSEGO
B4arryKe�r,
Mayor
AtteskAf
J d H s i, Zoni-ng,"�dmi"n'istratorICity Clerk
DEVELOPMENT DATA SUMMARY
• OVERALL TOTAL LOTS -119 /OVERALL DENSITY -1.51 LOTS/ACRE (GROSS)
• FUTURE SCHOOL EXPANSION AREA -10.0 ACRES
• OVERALLTOTAL SITE ACREAGE -78.8 ACRES
• EXISTING ZONING -AS AGRICULTURAL- RURAL SERVICE AREA& L2- GENERAL INDUSTRIAL DISTRICT
• PROPOSED ZONING -R -4 -URBAN SF DISTRICT
• ROADWAY LAYOUT GENERATED BASED ON CITY'S TRANSPORTATION PLAN.
R4 RESIDENTIAL - URBAN SF DISTRICT (LAND USE GUIDE - LD RESIDENTIALI
• LOT AREA: 12,000 SQ. FT.
• LOT WIDTH MIN.: INTERIOR 75 & 65 FEET; CORNER 1D0 FEET
• LOT DEPTH MIN.: 100 FEET
• FY SETBACK: ARTERIAL/MAJOR COLLECTOR: 65 FEET FROM R -O -W & 130 FEET FROM CENTERLINE
• LOCAL STREET: 35 FEET FROM R•O•W & 65 FEET FROM CENTERLINE
• SY SETBACK: INTERIOR 10 FEET; CORNER, AS REQUIRED FOR FRONT YARD
• RY SETBACK: INTERIOR 20 FEET; THROUGH LOT, AS REQUIRED FOR FRONT YARD
WETLANDS /SHORELAND
• 20 -FOOT BUFFER WITH A 40 -FOOT BUILDING SETBACK
EASEMENTS
• D/U EASEMENT 10 FEET WIDE ON SIDE AND REAR
ROADWAYS
• LOCAL RESIDENTIAL STREET -60-FOOT R -O -W / 28 -FOOT PAVEMENT
• MINOR COLLECTOR- 66 -FOOT R -O -W / 36 -FOOT PAVEMENT
• MSA COLLECTOR - 80 -FOOT R-O.W / PER MSA RULES FOR URBAN OR SUBURBAN STREET
• CUL -DE -SAC -MAXIMUM LENGTH IS 500 FEET, MINIMUM LENGTH IS 150 FEET
CA
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Sidewalk
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