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4.1 Coborns Expansion Request for City Council Action DEPARTMENT INFORMATION ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE: Planning City Planner Licht 22 January 2024 PRESENTER(s) REVIEWED BY: ITEM #: City Planner Licht City Administrator/Finance Director Flaherty City Engineer Wagner 4.1 – Coborn’s Expansion STRATEGIC VISION MEETS: THE CITY OF OTSEGO: 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: City staff recommends the City Council approve a Conditional Use Permit amendment and site and building plans. ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED? No Yes, and was held by Planning Commission 2 January 2024. BACKGROUND/JUSTIFICATION: Coborn Realty Company LLC has submitted plans for expansion of the retail grocery store building located at 15700 88th Street (Lot 1, Block 1, Parkview Retail). The proposed expansion adds 8,068 square feet of area to the south side of the existing 42,460 square foot principal building. The motor fuel facility is unaffected by the proposed building expansion. The expansion requires amendment of the Conditional Use Permit approved on 12 November 2019 that governs the property in accordance with Section 11-4-4 of the Zoning Ordinance, as well as site and building plan review. A public hearing to consider the proposed building expansion was held by the Planning Commission meeting at their meeting on 2 January 2024. The property owner west of the subject site spoke with concerns about noise from the loading area adjacent to her property. The public hearing was closed. In discussing the noise issue, the Planning Commission recommended establishing a fire lane in the area and limiting the hours for delivery vehicles. The Planning Commission had no other concerns and voted to recommend approval of the application. Findings of Fact and Decision consistent with the recommendation of the Planning Commission are presented for consideration by the City Council. No Site Improvement Performance agreement will be required; the landscaping to be installed on Outlot D, Parkview Retail will be addressed through a SIPA with the concurrent application for development of Outlot C, Parkview Retail. The recommended hours for limits on service delivery vehicles are 6:00AM to 10:00PM consistent with those for solid waste collection. SUPPORTING DOCUMENTS ATTACHED: • Planning Report dated 27 December 2023 • Findings of Fact and Decision POSSIBLE MOTION PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES: Motion to approve a Conditional Use Permit amendment and site and building plans for Lot 1, Block 1 Parkview Retail, subject to the conditions as stated in the Findings of Fact and Decision. BUDGET INFORMATION FUNDING: BUDGETED: Fund 701 – Development Escrows N/A 3601 Thurston Avenue Anoka, MN 55303 763.231.5840 TPC@PlanningCo.com 1 PLANNING REPORT TO: Otsego Planning Commission FROM: D. Daniel Licht REPORT DATE: 27 December 2023 60-DAY DATE: 2 February 2024 RE: Otsego – Coborn’s; Expansion TPC FILE: 101.02 BACKGROUND Coborn Realty Company LLC has submitted plans for expansion of the retail grocery store building located at 15700 88th Street (Lot 1, Block 2, Parkview Retail). The proposed expansion adds 8,068 square feet of area to the south side of the existing 42,460 square foot principal building. The motor fuel facility is unaffected by the proposed building expansion. The expansion requires amendment of the PUD-CUP approved on 12 November 2019 that governs the property in accordance with Section 11-4-4 of the Zoning Ordinance, as well as site and building plan review. A public hearing to consider the proposed building expansion has been noticed for the Planning Commission meeting on Tuesday, 2 January 2024 at 7:00PM. Exhibits:  Site Location Map  Building Elevations  Site Plan ANALYSIS Comprehensive Plan. The subject site is guided by the 2023 Comprehensive Plan for commercial land uses. The existing grocery store is within the primary commercial area of Otsego and provides retail goods and services that are consistent with the policies of the Comprehensive Plan. Expansion of the existing store increases the retail capacity of the business and furthers the City’s economic development goals. Item 3.2 2 Zoning. The subject site is zoned B1, Retail Business District, which allows the existing retail grocery store and it’s expansion as a permitted use. The accessory motor fuel facility is allowed by a Planned Unit Development - Conditional Use Permit. The proposed building expansion is subject to consideration of an amendment of the PUD-CUP and site and building plan review. Surrounding Uses. The subject site is surrounded by existing and planned land uses shown in the table below and the existing commercial use of the property is generally compatible with the area. There have been issues related to noise from the loading dock at the northwest corner of the building affecting the existing single family home to the west. A fence and plantings for screening the area were completed in 2023 and the adjacent property owner is also installing a fence to mitigate this issue. The proposed expansion of the principal building will not cause compatibility issues with surrounding properties. Direction Land Use Plan Zoning Map Existing Use North Commercial PUD District Retail, restaurant, office East Commercial B-1 District PUD District Bank SuperTarget South Commercial HD Residential B-1 District R-7 District Dunkin Parkview Grand West Commercial A-1 District Rural Residential Lot Requirements. Section 11-75-7.A and B of the Zoning Ordinance requires lots within the B1 District to be a minimum of one acre in area and 200 feet in width to a public street. The subject site complies with the minimum lot requirements of the B1 District. Setbacks. The proposed expansion of the principal building shifts the south wall of the existing building 60 feet to the south. The south wall of the expanded building will be 178 feet from the south lot line, exceeding the 30 foot minimum setback requirement established by Section 11- 75-7.C of the Zoning Ordinance. No other setback measurements are affected by the proposed building expansion. Exterior Materials. The exterior finish materials of the proposed building expansion are consistent with that used on the existing structure including precast concrete panels with a brick like finish, brick, glass windows, and metal canopies. The exterior materials comply with requirements of the approved PUD-CUP and Zoning Ordinance. Building Height. The proposed building is 31 feet in height to the high point of the flat roof at the building entrance on the south elevation and the main roof section is 24 feet in height. The height of the proposed building expansion complies the 35 foot height allowed within the B1 District specified in Section 11-75-8.A of the Zoning Ordinance. 3 Hours. The Zoning Ordinance does not limit hours of operation for retail businesses allowed as a permitted use within the B1 District. Motor fuel facilities are limited unless extended by the City Council, which was approved to allow for 24 hour operation with the PUD-CUP. Concerns about the hours for grocery goods delivery by the adjacent property owner to the west continue to be addressed as an operational issue. Vehicle Access. The subject site has one right-in/right-out access to 90th Street (CSAH 39) and two accesses to 88th Street. The approved PUD-CUP allows for shared access to 90th Street (CSAH 39) and 88th Street by the subject site and Outlot C and Outlot D, Parkview Retail. Pedestrian Access. There is a trail abutting the subject site on the south side of 90th Street (CSAH 39) and west side of Parrish Avenue (CSAH 42). A side walk is located along the north side of 88th Street abutting the subject site. There are sidewalk connections from the principal building to the trails and sidewalk at the perimeter of the site allowing for pedestrian access. Off-Street Parking. Section 11-21-8 of the Zoning Ordinance requires retail uses to provide one off-street parking stall for each 200 square feet of net floor area calculated as follows: Gross Area Net Area Required Stalls Existing Building 42,460sf. 38,214sf. 191 Proposed Expansion 8,068sf. 7,261sf. 37 Subtotal 50,528sf. 45,372sf. 228 Retail Building 15,034sf. 13,530sf. 68 Total 65,562sf. 58,902sf. 296 The proposed site plan provides for 300 parking stalls within Lot 1, Block 2 and Outlot D, Parkview Retail, which exceeds the number required by the Zoning Ordinance for the grocery store (including the accessory motor fuel facility). The site plan also illustrates proposed development of Outlot C with a 15,034 square foot retail building expected to be submitted for separate zoning and subdivision approvals that would provide an additional 30 parking stalls. The 330 parking stalls shown on the site plan exceeds the 296 off-street parking stalls required by the Zoning Ordinance for all of the existing and proposed uses within Block 2. Parking stalls are designed as 9 feet by 18 feet accessed by drive aisles that are a minimum of 24 feet wide. The dimensions of the parking area complies with the provisions of Section 11- 21-7.B of the Zoning Ordinance. The parking area is surfaced with concretre and surrounded by concrete curb as required by Section 11-21-7.C and Section 11-21-7.D of the Zoning Ordinance, respectively. Construction plans for expansion of the off-street parking area are to be subject to review and approval of the City Engineer. 4 An ingress/egress and cross parking easement must be recorded over Lot 1, Block 2, Outlot C, and Outlot D, Parkview Retail to allow for the shared access and parking of the uses shown on the site plan. Loading. There are two loading berths facing north on the northwest corner of the building. The location of the loading area allows for delivery by semi-tractor/trailer to enter the site from 88th Street and exit to 90th Street (CSAH 39). The loading area is lower than the grade of the drive aisle to the west and a screening fence and landscaping is provided on the west side of the loading area. Additional loading areas are provided along the north side of the building west of the loading berths. These loading areas are to be screened from view of 88th Street by re-installation of an existing fence, subject to approval of the Zoning Administrator. Drive Through. There is an existing drive through service window on the south elevation of the building. As part of the building expansion, the access to the drive through is to be modified to facilitate easier vehicle circulation and a canopy is to be added over the vehicle space adjacent to the service window. E-Commerce Area. The site plan illustrates construction of a canopy over six parking stalls with wider pedestrian accesses between the stalls for e-commerce pickup. Plans for the canopy have not been submitted. We recommend that the canopy be similar to that of the motor fuel facility for consistency, subject to review and approval of the Zoning Administrator prior to issuance of a building permit. Pedestrian crossing striping is also recommended between the principal building and e-commerce area to promote employee and vehicle safety. Landscape Plan. The proposed site plan does not alter the landscaping installed on the subject site with the PUD-CUP approval. Although there are trees indicated on the site plan along the west property line, no additional plantings are proposed in this area. The landscaping along the west property line is a mix of existing vegetation on the subject site and adjacent property that provides screening of the motor fuel facility, off-street parking, and loading area. A landscape plan is required for the north and east lines of Outlot D to continue the plantings installed on Lot 1, Block 2 along 90th Street (CSAH 39) and Parrish Avenue (CSAH 42). The landscape plan is to include extension of irrigation as required by Section 5-2-3.C.2 of the City Code. The landscape plan is to be subject to review and approval of the Zoning Administrator. Signs. The PUD-CUP approval allowed wall signs up to 15 percent of the wall area on all four sides of the building with the area of individual signs limited to 100 square feet. Installation of new signs or relocation of existing signs as part of the proposed building expansion require a sign permit subject to review and approval of the Zoning Administrator in compliance with the provisions of Chapter 37 of the Zoning Ordinance. 5 Exterior Lighting. Section 11-16-6.C.1 of the Zoning Ordinance limits the intensity of light at the property lines to not more than 0.4 foot-candles. Light fixtures are required to have a 90 degree horizontal cut-off as required by Section 11-16-6.C.3 of the Zoning Ordinance. The height of freestanding light fixtures is limited to 25 feet by Section 11-16-6.C.4.a of the Zoning Ordinance. Plans submitted with application for a building permit must identify installation of any new exterior light fixtures and photometric plans to verify compliance with the Zoning Ordinance. Utility Plan. Sanitary sewer and water utilities are available and connected to the existing building. Any changes to the existing utility services will be subject to review and approval of the City Engineer. Additional Utility Connection Charges will be required to be paid at the time a building permit is issued for the expanded building area. Grading Plan. All grading, drainage, and erosion control issues are to be subject to review and approval of the City Engineer. SIPA. The further development of Lot 1, Block 2 and Outlot A, Parkview Retail requires the developer to enter into a Site Improvement Performance Agreement in accordance with Section 11-4-7 of the Zoning Ordinance. The SIPA is to be drafted by the City Attorney and is subject to approval of the City Council. RECOMMENDATION The proposed expansion of Coborn’s is a positive in terms of expanding retail services in Otsego and increasing overall commercial development. The proposed building expansion complies with the requirements of the Zoning Ordinance and conditions of the PUD-CUP governing the property. City staff recommends approval of the application subject to the conditions below. POSSIBLE ACTIONS A. Motion to recommend approval of a PUD-CUP amendment and site and building plans for Lot 1, Block 2 Parkview Retail subject to the following conditions: 1. The site and building shall be developed in accordance with the plans on file with the City as provided for by Section 11-9-4 of the Zoning Ordinance. 2. An ingress/egress and cross parking easement shall be recorded over Lot 1, Block 2, Outlot C, and Outlot D, Parkview Retail, subject to review and approval of the Zoning Administrator. 3. The e-commerce canopy shall be similar in design and construction to that of the motor fuel facility, subject to review and approval of the Zoning Administrator prior to issuance of a building permit. 6 4. A crosswalk shall be provided from the principal building to the e-commerce area, subject to review and approval of the Zoning Administrator. 5. Screening of all loading areas shall be subject to approval of the Zoning Administrator. 6. A landscape plan for the yards of Outlot D, Parkview Retail abutting 90th Street (CSAH 39) and Parrish Avenue (CSAH 42) shall be submitted and is subject to review and approval of the Zoning Administrator. 7. Installation of new signs or relocation of existing signs as part of the proposed building expansion shall require a sign permit subject to review and approval of the Zoning Administrator. 8. All exterior lighting shall comply with Section 11-16-6 of the Zoning Ordinance, subject to review and approval of the Zoning Administrator. 9. All utility plans shall be subject to review and approval of the City Engineer. 10. All grading, drainage, and erosion control issues are to be subject to review and approval of the City Engineer. 11. The developer shall enter into a Site Improvement Performance Agreement with the City as provided for by Section 11-4-7 of the Subdivision Ordinance as drafted by the City Attorney and subject to approval of the City Council. B. Motion to recommend the application be denied based on a finding that the request is inconsistent with the Comprehensive Plan and does not comply with the Zoning Ordinance. C. Motion to table. c. 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CITY COUNCIL MEETING: 22 January 2024 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 property is Lot 1, Block 1, Parkview Retail. B. The property lies within the East Sewer District and is guided for commercial uses by the 2023 Otsego Comprehensive Plan. C. The property is zoned B1, Retail Business District. D. The proposed existing use of the property is as a retail grocery store with accessory motor fuel facility; retail stores are a permitted use within the B1; motor fuel facilities are allowed as a conditional use within the B1 District subject to the provisions of Chapter 4 of the Zoning Ordinance; a conditional use permit was approved by the City Council on 12 November 2019 for the existing use of the subject site. E. The applicant is proposing expansion of the principal building, which requires consideration of an amendment of the approved Conditional Use Permit in accordance with Section 11-4-4 of the Zoning Ordinance. F. The Planning Commission and City Council must take into consideration the possible effects of the proposed conditional use amendment with their judgment based upon (but not limited to) the criteria outlined in Section 11-4-2.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 2023 Comprehensive Plan guides the subject site for commercial land uses. The proposed expansion provides for increased delivery of retail goods and services to the Otsego market consistent with the Future Land Use Plan of the Comprehensive Plan. 2 2. The proposed use's compatibility with present and future land uses of the area. Finding: The proposed use is within an area to be developed with commercial uses. To the south is additional commercial development and a transitional multiple family dwelling use. To the west is an existing rural residential use planned to redevelop with commercial uses. Screening is provided to the west and limitations on operations will buffer the existing residential use from potential impacts related to the subject site until such time as that property may be redeveloped. 3. The proposed use's conformity with all performance standards contained within the Zoning Ordinance and other provisions of the City Code. Finding: The proposed site and building plans comply with the provisions of the Zoning Ordinance. 4. Traffic generation of the proposed use in relation to capabilities of streets serving the property. Finding: The subject site is accessed from 90th Street (CSAH 39) and Parrish Avenue (CSAH 42) via 88th Street. The Transportation Plan designates CSAH 39 and CSAH 42 as minor arterial streets, which have adequate capacity to accommodate traffic generated by the expanded use. 5. The proposed use can be accommodated by existing public services and facilities and will not overburden the City's service capacity. Finding: The subject site is located within the East Sewer District where the City anticipates development of urban uses such as the proposed motor fuel facility. The City has adequate utility infrastructure and other public service capacity to accommodate the expanded use. G. The planning report dated 27 December 2023 prepared by the City Planner, The Planning Company LLC, is incorporated herein. H. The Otsego Planning Commission conducted a public hearing at their regular meeting on 2 January 2024 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 5-0 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: 1. The site and building shall be developed in accordance with the plans on file with the City as provided for by Section 11-9-4 of the Zoning Ordinance. 2. An ingress/egress and cross parking easement shall be recorded over Lot 1, Block 2, Outlot C, and Outlot D, Parkview Retail, subject to review and approval of the Zoning Administrator. 3. The e-commerce canopy shall be similar in design and construction to that of the motor fuel facility, subject to review and approval of the Zoning Administrator prior to issuance of a building permit. 4. A crosswalk shall be provided from the principal building to the e-commerce area, subject to review and approval of the Zoning Administrator. 3 5. Screening of all loading areas shall be subject to approval of the Zoning Administrator. 6. A landscape plan for the yards of Outlot D, Parkview Retail abutting 90th Street (CSAH 39) and Parrish Avenue (CSAH 42) shall be submitted and is subject to review and approval of the Zoning Administrator. 7. Installation of new signs or relocation of existing signs as part of the proposed building expansion shall require a sign permit subject to review and approval of the Zoning Administrator. 8. All exterior lighting shall comply with Section 11-16-6 of the Zoning Ordinance, subject to review and approval of the Zoning Administrator. 9. All utility plans shall be subject to review and approval of the City Engineer. 10. All grading, drainage, and erosion control issues are to be subject to review and approval of the City Engineer. 11. A 20-foot wide fire lane shall be posted along the west curb line, subject to review and approval of the Emergency Services Director. 12. Allowed hours for semi-tractor/trailer and service vehicle deliveries shall only occur between the hours of six o'clock (6:00) A.M. and ten o'clock (10:00) P.M. ADOPTED by the Otsego City Council this 22nd day of January, 2024. MOTION BY: SECONDED BY: IN FAVOR: OPPOSED: CITY OF OTSEGO __________________________________ Jessica L. Stockamp, Mayor ATTEST: __________________________________ Audra Etzel, City Clerk