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Item 3.3 Bancorp Group LLC.ITEM 3_3 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: 12 August 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, had submitted a concept plan for development the property located west of Labeaux Avenue (CSAH 19) and south of 801h 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 applied 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 was held by the Planning Commission at their meeting on 19 July 2021. The Planning Commission voted 6-0 to recommend the City Council deny the application. The developer has revised their concept plan to limit the request to amend the Comprehensive Plan to the area east of Kalland Avenue proposing Lots 1 and 2, Block 2 Dara Glen be developed as 11 single family lots. The balance of the property would remain guided for future industrial land uses as part of the amended request. As the revised request is consistent with the original application, it is not necessary to notice a second public hearing, but the matter is being returned to the Planning Commission for reconsideration. The Planning Commission will consider the revised Comprehensive Plan amendment request at their meeting on 16 August 2021. Exhibits: ■ Site location map ■ Developer's narrative dated August 12, 2021 ■ Concept Plan (Revised) 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 80th 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. The developer has indicated that expansion of Kaleidoscope Charter School 2 may be pursued regardless of the outcome of the Comprehensive Plan amendment request. The revised concept plan would limit residential land use within the subject site to the area between Kaleidoscope Charter School and the future commercial land uses guided to the east. Expansion of Kaleidoscope Charter School and a change to residential use only east of the school property and south of future 771h Street using the major collector street as a physical barrier to transition to industrial uses to the north and west would be acceptable. This arrangement of land uses would also provide for institutional and residential uses along both sides of Kalland Avenue between 73rd Street and future 77th Street consistent with the policy of the Comprehensive Plan to have like uses fronting a street with land use transitions at major intersections or along rear lot lines, which would minimize non-residential traffic on this segment of Kalland Avenue. Having single family lots east of Kaleidoscope Charter School is not unlike the arrangement of Prairie View Elementary school and the single family lots on the south side of 80th Street, which is also a minor collector street. Transportation Plan. The property abuts 80th Street on the north and Kalland Avenue terminates within the portion of the subject site abutting the proposed single family lots. 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 73rd 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 801h Street onto CSAH 19) or right-in/right-out intersection in the future. The layout of 77th Street and Kalland Avenue for the revised concept plan reflects the Wright County Long Range Transportation Plan and Transportation Plan element of the Otsego Comprehensive Plan. The developer's revised concept plan does not contemplate construction of 77th Street as part of the development of the proposed single family lots. Extension of Kalland Avenue with connection to Labeaux Avenue (CSAH 19) 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 and Kaleidoscope Charter School. The required timing of construction for 77th Street would need to be evaluated as part of zoning and subdivision applications for the revised concept plan involving the expansion of Kaleidoscope Charter School and/or the proposed residential land use. ■ 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 3 acknowledges that school facilities serve a public park function. The Parks System Master Plan does not guide acquisition of additional neighborhood park facilities within the area of the subject site, but does recommend consideration of land for playfield facilities either independent or in cooperation with Kaleidoscope Charter School 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. The existing park easement can be modified through agreement of the parties. If expansion of Kaleidoscope Charter School were proposed for development, the City would work with school officials to explore opportunities to collaborate on fields and open space. ■ Stormwater Management. The Subdivision Ordinance requires that wetland and wetland buffers be deeded to the City as part of the stormwater system. The feasibility of a trail corridor within the wetlands along the south line of the subject site would need to be further evaluated, but with or without a trail, the area surrounding the wetlands and stormwater basins within the area will be protected by the City as permanent open space creating separation between the property and Kittredge Crossings under any development scenario. Acquisition of the wetlands along the south line of the subject site would begin to enable the City to address upstream stormwater drainage issues on properties to the west as part of the Otsego Creek Stormwater District. 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. The proposed change of only the two existing industrial lots to 11 single family lots can be accommodated within the limited capacity of the W-WWTF facility remaining before the planned expansion is substantially complete in 2024. 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. The revised concept plan does provide for a more positive arrangement of land uses along Kalland Avenue between 771h Street and Kittredge Crossings that is consistent with the land use development concepts of the Comprehensive Plan, The Planning Commission may reconsider its recommendation regarding the requested Comprehensive Plan amendment based on the more limited area involved and the context of this area of the property relative to surrounding land uses and transportation. M POSSIBLE ACTIONS A. Motion to recommend approval of a resolution amending the Comprehensive Plan guiding Lots 1 and 2, Block 2 Dara Glen for Low Density Residential land uses as presented on the revised concept plan. 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 5 Site Location Map Overview Legend Roads — CSAHCL CTYCL — MUNICL — PRIVATECL — TWPCL Highways Interstate — State Hwy — US Hwy City/Township Limits ❑c ❑ t 0 Parcels Torrens The Bancor Group, Inc August 12, 2021 Otsego Planning Commission c/o Dan Licht, City Planner City of Otsego 13400 90th Street NE Otsego, MN 55330 Dear Planning Commissioners, We have made a significant change to our Comprehensive Plan Amendment request. An updated concept plan is attached with this brief narrative. Request: Banco --,r bL, Request for Comprehensive Plan Amendment to change the guide plan from Industrial to Low Density Residential. We have limited our request to the two industrial parcels east of the Kaleidoscope School. Property Information: • Acres — 5 acres • Comprehensive Plan Guiding o Industrial • Current Zoning o 1-2 General Industrial Concept Plan: • 11 Single Family Homesites o NOTE: 10 acre parcel for future school expansion still part of overall plan as are planned buffers between the industrial guised land and the school as shown. These area are no longer part of the Comprehensive Plan Amendment request. Background: Since the public hearing at the planning commission, we have evaluated with staff if there was a smaller more reasonable step towards a residential use in and around the school. We determined that there is a nice opportunity for a small area of single family homes to the east of the school as shown on our concept plan. Since these homesites are especially deep this allows us to incorporate a landscaped buffer along the back of the lots. This buffer helps provide a good transition from residential to commercial. As mentioned above we also intend to provide buffers adjacent to the school. 1 The Bancor Group, Inc Bancor r.-. bJo: The requested change from industrial to residential is only for the two smaller industrial lots east of the school leaving the larger industrial areas north and west of the school available for larger industrial users. While much less than our initial proposal, adding this residential area helps the front entry and approach into the school feel more like a residential area. We believe this is a much simpler request and look forward to discussing it with your further at your upcoming planning commission meeting. Paul Robinson VP, Land Development Manager J - ¥ U MIMJ c� \�\ 00 m k \\_ -P LM , . \ I �. § ( ° � § |§ ),)( / / |{�� \(\ k )\;; e a |!§| § ;E§[ !!§ s ! §(§� •\��tZt] ` ) °,�� [, § } \! §§_ !E ;;;E . § , ., f E .... .... .. U MIMJ c� \�\ 00 m k \\_ -P LM , . \ I �.