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4.1 Norhart Apartment Concept Request for City Council Action DEPARTMENT INFORMATION ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE: Planning City Planner Licht 24 October 2024 PRESENTER(s) REVIEWED BY: ITEM #: City Planner Licht Assistant City Administrator Hille City Engineer Wagner 4.1 – Norhart STRATEGIC VISION 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: The Planning Commission recommended support for a proposed multiple family and commercial development of the Richard Lefebvre property. ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED? No Yes BACKGROUND/JUSTIFICATION: Norhart has submitted a PUD Concept Plan for development of a multiple family building as the first phase of a mixed-use development located between TH 101 and Parrish Avenue (CSAH 42) north of 90th Street (CSAH 39). The subject site consists of three parcels having an area of 33.69 acres. PUD Concept Plan applications are processed in accordance with Section 11-36-4.C of the Zoning Ordinance to provide comment to the developer as to the acceptability of the land use. The City requires that PUD Concept Plan reviews include a public hearing before the Planning Commission so that surrounding property owners have an opportunity to be informed about the project and ask questions or provide comment. The PUD Concept Plan process does not provide the developer approvals to move forward with construction. Subsequent applications will be necessary that require Planning Commission review and City Council approval and which include a public hearing. A public hearing to consider the PUD Concept Plan application was held by the Planning Commission at their meeting on 15 August 2022. The Planning Commission tabled discussion of the PUD Concept Plan to allow the developer to complete a traffic study for the proposed development that had already been initiated. The traffic study has been received and reviewed by City staff, Wright County Highway Department staff, and provided to the City of Elk River. The developer has also provided an alternative site plan for the proposed development based on comments by Planning Commission members at the meeting on 15 August 2022. The Planning Commission consider the application again, including the additional information received, at their meeting on 17 October 2022. The Planning Commission chair allowed additional public comment with regards to the new information that was being considered. Minutes of the 15 August 2022 Planning Commission meeting and draft minutes of the 17 October 2022 Planning Commission meeting are attached. The Planning Commission discussed the PUD Concept Plan from a high-level perspective focusing on the density of the residential use and location of the apartment building within the site. Secondary to this discussion were issues related to PUD District flexibilities requested by the developer for building height, off-street parking, and minimum floor area requirements, although the Planning Commission emphasized a preference to adhere to established requirements. Following discussion, the Planning Commission voted 4- 0 to recommend support for Alternative 2 of the PUD Concept Plan subject to the comments outlined in the Planning Report Addendum dated 14 October 2022 with the following amendment: 3. The density of development for the multiple family land use shall not exceed one dwelling unit per 2,000 square feet unless approved by the City Council as a PUD Development Stage Plan. It is emphasized that a vote by the City Council on this PUD Concept Plan is not an approval to proceed with development. If the developer elects to move forward, they must submit applications for 1) a Zoning Map amendment, 2) PUD Development Stage Plan, and 3) preliminary and final plat. These applications required a public hearing to be held by the Planning Commission to allow public questions and comments before a recommendation is provided to the City Council and a decision made to approve or deny a request. SUPPORTING DOCUMENTS ATTACHED: ▪ Planning Commission minutes of August 15, 2022 ▪ Draft Planning Commission minutes of October 17, 2022 ▪ Planning Report dated 12 August 2022 ▪ Planning Report Addendum dated 14 October 2022 POSSIBLE MOTIONS PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES: Motion to support Alternative 2 of the PUD Concept Plan for Norhart (Richard Lefebvre property) subject to the comments outlined in the Planning Report Addendum dated 14 October 2022, as amended by the Planning Commission. Motion to not support the PUD Concept Plan based on a finding that the request is inconsistent with the Comprehensive Plan and recommendations of the 2018 Multiple Family Housing Study. BUDGET INFORMATION FUNDING: BUDGETED: NA Minutes of the Otsego Planning Commission October 17, 2022 Page 2 Corey Tanner, 7952 Palmgren Avenue, asked about how many jobs this building will create. Mr. Anderson said 15-20 full and part time jobs. Mark Nystrom, 9565 Park Ave, asked if businesses will bring in tax revenue. City Planner Licht explained yes the businesses developed in the City pay property taxes. Chair Offerman closed public comments 7:13 pm. Commissioner Foster asked if this store would be similar to Maple Grove, Minnetonka and Monticello. Mr. Anderson said those were older stores and this building is a newer model that is larger. Commissioner Jones asked what the hours of operation would be and how the loading operation works. Mr. Anderson said store hours are from 9am to 8pm. Mr. Anderson said one truck delivers daily from a distribution center, with an exception of specific vendors. Mr. Anderson said trucks or trailers are not parked at the stores. Mr. Anderson said deliveries are typically unload before the stores open. Commissioner Jones said she was concerned about truck maneuvering when cars are in the parking lot but that the operation plan addresses that issue. Commissioner Stritesky motioned to approve site and building plans upon Lot 1, Block 28, Parrish Meadows for ALDI Inc., subject to the following conditions as stated in the staff report. Seconded by Commissioner Foster. All in favor. Motion carried. 4-0. This will go to the City Council meeting next Monday November 14, 2022 at 7 PM. 4.2 Norhart PUD Concept Plan City Planner Licht presented the Planning Report. Marybeth Wise and Mike Salt of Norhart were present as the applicant and updated the Commissioners with a presentation. Chair Offerman allowed public comments at 7:49 pm. Dan Sly, 9501 Parrish Avenue, asked how the number of dwelling units would change if this is approved with the density allowed by the Comprehensive Plan and asked if the new alternative includes the undeveloped land. James Mulcare, 9560 Parkington Avenue, questioned the building location in Alternative noting the noise level from traffic on TH101. Minutes of the Otsego Planning Commission October 17, 2022 Page 3 Mark Nystrom, 9565 Park Avenue, is concerned about the amount of traffic that already goes through this area and the increased traffic that will come with building an apartment. Ryan Dunlap, 7787 Marlow Avenue, asked commissioners to listen to the citizens. Michael Yoakam, 15703 93rd Circle, concerns about traffic and not for the idea of forcing a building which stated would make traffic worse. He also mentioned if the commissioners make exceptions for this builder would be a disservice to the former builders that followed the comprehensive plan. Mr. Sly asked commissioners to not allow a PUD. Jake Denman, 14760 92nd Circle, concerned with the idea of building when “we know it’s going to fail”. He is not in favor in making a bad problem worse. He wants to know the update on the parking usage stating that parking on the street does not sound like an ideal situation. Corey Tanner, 7952 Palmgren Avenue, said the City doesn’t have a housing supply issue and would like to see a plan for future transportation improvements before building more. Tom Brooke, 10520 97th Street, asked where snow would be stored so as to not decrease the amount of parking spaces. Dan Fietek 15117 87th Street, asked what is the City’s motivation for approving development. Larry Fries, 8467 Parell Avenue, commented about existing traffic congestion on Parrish with people turning around in private driveways or making u-turns that would be made worse with the proposed development. James Mulcare, 9560 Parkington Avenue, suggested the City buy the land for a park. Julie Frys, 8467 Parell Avenue, asked Commissioners if they have considered law enforcement, fire stations and schools. Max Farrard, 15364 96th Street, asked if the City has an regulations for subsidized housing or criminal activity by apartment residents. Minutes of the Otsego Planning Commission October 17, 2022 Page 4 Chance Nelson, 9193 Parrish Avenue is concerned for the safety of pedestrians and timeframe for the construction of a trail along Parrish Avenue. Chair Offerman closed public comments at 8:07 pm. City Planner Licht addressed the concerns about traffic related to the traffic study and noted that streets within the development would have sidewalks on both sides. Chair Offerman clarified that the traffic study is for the current growth no matter what is built on this lot. He commented about the multiple traffic points and making it safer for all. Commissioner Stritesky asked about the trips/day volumes after TH101 road construction is over. City Planner Licht explained that traffic is likely to decrease to 2016 to 2021 volumes. City Planner Licht said that traffic generated by the proposed development would be dispersed to both Parrish Avenue and Quaday Avenue. Commissioner Offerman commented that the County has a 5-year Capital Improvement plan to schedule future improvements. City Planner Licht explained the purpose for the 2018 Multiple Family Housing Study to guide development that is appropriate for Otsego. City Planner Licht commented about the density of the project being greater than recommended by the Multiple Family Housing Study. Chair Offerman said he would like to see the density comply with the Multiple Family Housing Study and other apartment developments. Commissioner Stritesky agreed. City Planner Licht said a snow removal plan would be reviewed if this moved to a PUD Development Stage Plan application. City Planner Licht said that with the concept plan, the developer is looking for a high- level response as to where Commissioners are willing to consider flexibility. City Planner Licht commented that Otsego has three school districts with ISD 728 being the largest and that the City coordinates closely with the district about the growth occurring in the City, which is one of four growing cities in the School District. City Planner Licht explained the City’s contract for police services with the Wright County Sheriff Office. Minutes of the Otsego Planning Commission October 17, 2022 Page 5 City Planner Licht said this property is withing the Elk River Fire district and the Elk River Fire Department has said they can protect this type of building. City Planner Licht added that the City Council is completing a study to deploy an Otsego fire station. City Planner Licht said that the City has adopted an ordinance regarding rental housing that includes apartment requiring maintenance of these properties and regular inspections. City Planner explained that development occurs as a result of the private market where developers and land owners make agreements and the City is responding to that activity through its Comprehensive Plan and development regulations. Chair Offerman commented that the City has a Parks System Master Plan that does not direct the City to acquire the property for a park. City Planner Licht said that the City can require dedication of a portion of the property for park purposes and would use this authority to acquire the portion of the property along the Mississippi River. Commissioner Stritesky asked about the parking and if the amenities are open to the public. The reply was it is just for the residents who live there, not for the public. Chair Offerman said he does not support the increase in density proposed but is willing to consider flexibility on issues like building height, parking, or minimum floor areas. Commissioner Stritesky said he prefers the location of the building in Alternative 2, but would like to see apartments built in another part of the city if possible. Commissioner Stritesky said he favors adhering to the standards the City has adopted. Commissioner Foster stated he does not support the proposed development unless established City standards are met. Commissioner Foster commented that amenities available within the building may change over time. Commissioner Jones said she want the project to comply with the density allowances established by the City. Commissioner Jones also said there should be one garage stall for each unit. Commissioner Jones asked if they comply with what the Commissioners are asking would they still need a PUD. City Planner said that a PUD District may still be a preferred approach to address other development issues, including allowed commercial uses. Minutes of the Otsego Planning Commission October 17, 2022 Page 6 Commissioner Heider asked if 30 percent efficiency units is a maximum or a minimum. City Planner Licht said a maximum number of units allowed. City Planner Licht said any action by the Planning Commission is not an approval. The developer can decide to move forward with an application or not proceed with the development. Councilmember Darkenwald restated that this is a concept plan and the developer is looking for guidance. CM Darkenwald said that if the developer moves forward, additional applications would need to be submitted and public hearing would be required. CM Darkenwald said that City Council has the ability to approve or deny that request. Commissioner Stritesky motioned to recommend support for Alternative 2 of the PUD Concept Plan for Norhart (Richard Lefebvre property) subject to the conditions stated in the Planning Report, amended as follows: 3. The density of development for the multiple family land use shall not exceed one dwelling unit per 2,000 square feet unless approved by the City Council as a PUD Development Stage Plan. Seconded by Commissioner Jones. All in favor. Motion carried. 4-0. 5. Updates: 5.1 Updates on City Council actions. CM Darkenwald updated the Planning Commission on recent City Council actions. 5.2 Updates on future Planning Commission items. City Planner Licht updated the commissioners on possible future agenda items. 6. Adjourn. Commissioner Stritesky motioned to adjourn. Seconded by Commissioner Jones. All in favor. Motion carried. 4-0. Adjourned at 9:04 PM. Respectfully Submitted, By: ________________________ Bethany Benting, Deputy Clerk Minutes of the Otsego Planning Commission October 17, 2022 Page 7 TPC The Planning Company PLANNING REPORT 3601 Thurston Avenue Anoka, MN 55303 763.231.5840 TPC@PlanningCo.com TO: FROM: REPORT DATE: RE: TPC FILE: Otsego Planning Commission D. Daniel Licht, AICP 12 August 2022 Otsego - Norhart (Richard Lefebvre property); PUD Concept Plan 101.02 BACKGROUND Norhart has submitted a PUD Concept Plan for a 254 unit multiple family building as the first phase of a mixed-use development located between TH 101 and Parrish Avenue (CSAH 42} north of 90th Street (CSAH 39}. The subject site consists of three parcels having an area of 33.69 acres. PUD Concept Plan applications are processed in accordance with Section 11-36-4.C of the Zoning Ordinance to provide comment to the developer as to the acceptability of the land use. The City requires that PUD Concept Plan reviews include a public hearing before the Planning Commission so that surrounding property owners have an opportunity to be informed about the project and ask questions or provide comment. A public hearing to consider the PUD Concept Plan application has been noticed for the Planning Commission meeting on 15 August 2022 at 7:00PM. Exhibits: •Site Location Map •Multiple Family Housing Study site recommendations •PUD Concept Plan (13 sheets) ANALYSIS Comprehensive Plan. 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 related to housing. 1 TPC 3601 Thurston Avenue Anoka, MN 55303 763.231.5840 TPC@PlanningCo.com The Planning Company PLANNING REPORT -Addendum TO: Otsego Planning Commission FROM: D.Daniel Licht REPORT DATE: 13 October 2022 RE: Otsego -Norhart (Richard Lefebvre property); PUD Concept Plan TPC FILE: 101.02 BACKGROUND Norhart has submitted· a PUD Concept Plan for development of a multiple family building as the first phase of a mixed-use development located between TH 101 and Parrish Avenue (CSAH 42} north of 90th Street (CSAH 39}. The subject site consists of three parcels having an area of 33.69 acres. PUD Concept Plan applications are processed in accordance with Section 11-36-4.C of the Zoning Ordinance to provide comment to the developer as to the acceptability of the land use. The City requires that PUD Concept Plan reviews include a public hearing before the Planning Commission so that surrounding property owners have an opportunity to be informed about the project and ask questions or provide comment. The PUD Concept Plan process does not provide the developer approvals to move forward with construction. Subsequent applications will be necessary that require Planning Commission review and City Council approval and which include a public hearing. A public hearing to consider the PUD Concept Plan application was held by the Planning Commission at their meeting on 15 August 2022. The Planning Commission tabled discussion of the PUD Concept Plan to allow the developer to complete a traffic study for the proposed development that had already been initiated. The traffic study has been received and reviewed by City staff, Wright County Highway Department staff, and provided to the City of Elk River. The developer has also provided an alternative site plan for the proposed development based on comments by Planning Commission members at the meeting on 15 August 2022. The Planning Commission will consider the PUD Concept Plan, including additional information received, at their meeting on 17 October 2022. 1