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ITEM 2.1TPC3601 Thurston Avenue N, Suite 100 Anoka, MN 55303 Phone: 763.231 .5840 Facsimile: 763.427.0520 TPCPPlanningCo.cor-n PLANNING REPORT TO: Otsego Planning Commission FROM: Daniel Licht, AICP RE: Otsego —Arbor Creek 3rd Addition; PUD -CUP amendment REPORT DATE: 10 June 2014 TPC FILE: 101.02 BACKGROUND KHovnanian Homes has acquired 27 of the 151 single family lots final platted within Arbor Creek 3rd Addition east of MacIver Avenue and has a purchase agreement for the remainder of the lots to be closed upon with phased buildout of the subdivision. The Arbor Creek 3rd Addition Final Plat was approved by the City Council on 30 June 2005. The original developer had initiated site grading and utility improvements but stopped work on the project as the economic recession resulted in a decline in the new housing market. KHovnanian Homes is requesting an amendment to the PUD -CUP approved with the preliminary plat to allow a reduction in the required setback from MacIver Avenue to expand the number of their current house plans that may be built upon the lots abutting that collector street right-of-way. A public hearing has been noticed for the Planning Commission meeting on 16 June 2014. Exhibits: A. Site Location B. House plan matrix C. Landscape Plan ANALYSIS Setback. The Zoning Ordinance establishes a 65 foot setback for front yards abutting arterial and collector streets as designated by the Transportation Plan within the Comprehensive Plan. MacIver Avenue along the west side of the KHovnanian Homes lots is designated as a residential collector street by the Comprehensive Plan currently and at the time it was constructed. Section 20-16-3.D of the Zoning Ordinance establishes that on a through lot (having streets along both the front and rear lot lines) both yards are subject to front setback requirements. The 65 foot setback requirement was carried forward from the Wright County Zoning Ordinance when Otsego incorporated and adopted its own Zoning Ordinance. Under Wright County jurisdiction, the 65 foot setback would most often apply to a lot split where the front yard faces a major roadway such as a County Road. In a platted subdivision where access to the major roadway is limited to local street intersections, the 65 foot setback is applied to corner or through lots. In both scenarios, the intent of the setback is to create physical separation between the residential use and high volume of traffic on the abutting roadway. The City expanded on the buffer function of the setback adopting minimum landscape requirements for yards abutting arterial and collector streets on 14 October 2014. Building Envelope. Lots 1-7, Block 4, Lots 1-10, Block 7 and Lots 1-6, Block 13 within Arbor Creek 3rd Addition abutting the east side of MacIver Avenue are through lots with a depth of 150 feet. Based on a 65 foot setback from MacIver Avenue and a 35 foot setback from Mackenzie Avenue, the depth of the building envelope is 50 feet. Khovnanian Homes intends to offer 13 home plans within Arbor Creek 3rd Addition. Of these 13 plans, only one has a depth less than 50 feet that could be constructed on the lots abutting MacIver Avenue within the required setbacks. Lot 48, Block 7 is a corner lot with a side yard abutting MacIver Avenue with a width of 150 feet and 75 foot wide building envelope within required setbacks that can accommodate all of Khovnanian Homes' proposed house plans. In order to expand the number of their current house plans that could be built upon the through lots abutting the east side of MacIver Avenue, Khovnanian Homes is requesting a reduction in the 65 foot setback through a PUD - CUP amendment. The PUD -CUP approach allows a means to approve flexibility from the performance standards of the Zoning Ordinance while maintaining consistency with the intent of the initial requirement. Khovnanian has noted that all 13 house plans could be accommodated by reducing the setback from MacIver Avenue to 40 feet. City staff noted a concern that the only other time the required buffer yard setback has been reduced was for the Zimmer Farms subdivision. A 50 foot setback along the east side of MacIver was required for Zimmer Farms as the right-of-way for MacIver Avenue was shifted east of centerline to provide the minimum width for a collector street in consideration of existing right-of-way dedicated on the west side of the road within the City of Albertville. A 50 foot setback from MacIver Avenue for the Khovnanian Homes' lots in Arbor Creek 3rd Addition would provide enough depth within the building envelope to accommodate at least 10 of the 13 house plans the builder intends to offer. Based on the City's previous actions along this roadway, Khovnanian Homes is requesting a 50 foot setback from MacIver Avenue. To offset the reduction in the setback along MacIver Avenue, Khovnanian Homes has submitted a revised bufferyard landscape plan. It had been their intent to replace 73 of the 93 black hills spruce trees planted around 2005 with initial construction of Arbor Creek 3rd Addition that are dead or damaged with new plantings five to six feet tall. 2 Khovnanian Homes has revised this plan again to provide new plantings that are nine to 10 feet tall and supplement those evergreen trees with additional plantings both in the bufferyard and at the neighborhood entries from MacIver Avenue. The taller evergreen trees and additional plantings provide for a more immediate and complete landscape screen for the yards abutting MacIver Avenue and is consistent with the intent of the Zoning Ordinance for the residential bufferyards. Criteria. The Planning Commission is to evaluate the PUD -CUP amendment request based upon (but not limited to) the criteria outlined in Section 2-4-2.F of the Zoning Ordinance: The proposed action's consistency with the specific policies and provisions of the Otsego Comprehensive Plan. Comment.- The policies of the Comprehensive Plan establish that residential neighborhoods are to be protected from adverse environmental impacts such as noise, air and visual pollution by locating major roadways at the boundaries of neighborhoods and mitigation through site planning. The 65 foot setback and residential bufferyard requirements established by the Zoning Ordinance for lots abutting arterial and collector streets serve to implement these policies. The proposed reduction in the required setback from Maclver Avenue and enhanced bufferyard landscaping for the subject lots in Arbor Creek 3�d Addition is consistent with the policies of the Comprehensive Plan and intent of the Zoning Ordinance regulations. 2. The proposed use's compatibility with present and future land uses of the area. Comment. The proposed 50 foot setback from MaclverAvenue and enhanced landscaping within the bufferyard will be sufficient to mitigate potential environmental impacts associated with the traffic on Maclver Avenue now and in the future. 3. The proposed use's conformity with all performance standards contained within the Zoning Ordinance and other provisions of the City Code. Comment: The lots comply with all requirements of the Zoning Ordinance except as proposed to be modified by the PUD -CUP amendment. 4. Traffic generation of the proposed use in relation to capabilities of streets serving the property. Comment. The proposed PUD -CUP amendment will not 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. 3 Comment: The proposed PUD -CUP amendment will not affect the City's service capacities. RECOMMENDATION The requested PUD -CUP amendment to reduce the setback for lots in Arbor Creek 3rd Addition abutting the east side of MacIver Avenue from 65 feet to 50 feet with enhanced landscaping expands housing choices and maintains the intent of the City's residential bufferyard requirements. Our office recommends approval of the application as outlined below. POSSIBLE ACTIONS A. Motion to approve the PUD -CUP for Arbor Creek 3rd Addition subject to the following conditions: The setback from MacIver Avenue for Lots 1-7, Block 4, 1-10, Block 7 and Lots 1-6, Block 13, Arbor Creek 3rd Addition shall be fifty (50) feet. 2. The developer shall install landscaping within the yards abutting MacIver Avenue in accordance with the submitted landscape plan and the requirements of Section 20-16-7.C.2 of the Zoning Ordinance. 3. The developer shall provide a security with each phase of the buildout of Arbor Creek 3rd Addition for the installation of landscaping in accordance with the submitted landscape plan. 4. The developer shall warranty the plantings installed in accordance with the landscape plan as healthy and alive for a period of two (2) years from the date of installation. B. Motion to deny the request based on a finding that the application is inconsistent with the policies of the Comprehensive Plan and intent of the Zoning Ordinance. C. Motion to table. C. 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