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3.7 Coborns Erbert and Gerberts Request for City Council Action DEPARTMENT INFORMATION ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE: Planning City Planner Licht 11 March 2024 PRESENTER(s) REVIEWED BY: ITEM #: Consent City Administrator/Finance Director Flaherty 3.7 – Coborn’s; Erbert & Gerbert’s 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. ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED? No Yes, was held by Planning Commission 6 March 2024 BACKGROUND/JUSTIFICATION: Coborn Realty Company LLC is proposing to add a convenience food use with drive through service within the retail grocery store building located at 15700 88th Street (Lot 1, Block 1, Parkview Retail). The proposed convenience food will be located within the space previously occupied as a pharmacy and utilize the drive through service window on the north elevation of the building. The proposed convenience food use requires amendment of the Conditional Use Permit initially approved on 12 November 2019 and amended recently on 12 February 2024 for an expansion of the principal building. A public hearing to consider the proposed convenience food use was held by the Planning Commission at their meeting on 6 March 2024. Mr. Tom Bruce of Rice Companies was present as the applicant. The resident to the west of the site spoke during the public hearing regarding outdoor storage on the west side of the building. City staff said that screening this area is a condition of approval of the existing Conditional Use Permit and we will follow up with the owner as construction is completed on the building expansion. There were no other public comments, and the public hearing was closed. The Planning Commission had no other concerns and voted to recommend approval of the application. Findings of fact consistent with the recommendation of the Planning Commission are presented for consideration by the City Council. No Site Improvement Performance agreement will be required. SUPPORTING DOCUMENTS ATTACHED: • Planning Report dated 2 March 2024 • 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 for Lot 1, Block 1 Parkview Retail to allow a convenience food restaurant with drive-through service, subject to the conditions stated by the Findings of Fact and Decision as presented. BUDGET INFORMATION FUNDING: BUDGETED: Fund 701 – Developer Escrow 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: 2 March 2023 60-DAY DATE: 8 April 2024 RE: Otsego – Coborn’s; Convenience Food CUP Amendment TPC FILE: 101.02 BACKGROUND Coborn Realty Company LLC is proposing to add a convenience food use with drive through service within the retail grocery store building located at 15700 88th Street (Lot 1, Block 1, Parkview Retail). The proposed convenience food will locate within the space previously occupied as a pharmacy and utilize the drive through service window on the north elevation of the building. The proposed convenience food use requires amendment of the Conditional Use Permit initially approved on 12 November 2019 and amended recently on 12 February 2024 for an expansion of the principal building. A public hearing to consider the proposed building expansion has been noticed for the Planning Commission meeting on 6 March 2024. Exhibits:  Site Location Map  Site Plan ANALYSIS Zoning. The subject site is zoned B1, Retail Business District, which allows the existing retail grocery store. The proposed convenience food use is allowed with approval of a Conditional Use Permit subject to the performance standards established by Section 11-75-6.A of the Zoning Ordinance. Consideration of the Conditional Use Permit by the Planning Commission is to be based upon, but not limited to, the criteria established by Section 11-4-2.F of the Zoning Ordinance: 2 1. The proposed action's consistency with the specific policies and provisions of the Otsego Comprehensive Plan. Comment: 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. Inclusion of a convenience food use within the principal building provides a sought-after business in the community furthering the City’s economic development goals. 2. The proposed use's compatibility with present and future land uses of the area. Comment: The subject site is surrounded by existing and planned land uses shown in the table below. The existing commercial use of the property is generally compatible with the area. The location of the convenience food use within the principal building and drive through being on the north elevation will avoid any potential compatibility issues with the proposed use and 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 3. The proposed use's conformity with all performance standards contained within the Zoning Ordinance and other provisions of the City Code. Comment: The proposed use complies with the provisions of the Zoning Ordinance. 4. Traffic generation of the proposed use in relation to capabilities of streets serving the property. Comment: 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 proposed use. 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 subject site is located within the East Sewer District where the City anticipates development of urban uses meaning that the City has adequate utility infrastructure and other public service capacity to accommodate the expanded use. 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 existing principal building complies with the setback requirements established by Section 11-75-7.C of the Zoning Ordinance. Occupancy of the proposed use within the existing building does not involve expansion of any exterior wall and will not affect compliance with setback requirements. Hours. The Zoning Ordinance does not limit hours of operation for convenience food uses allowed as a conditional use within the B1 District. The grocery store is open 6:00AM to 10:00PM and it is expected that the convenience food use would operate within these hours. 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 Retail Space 49,786sf. 44,807sf. 225 Convenience Food 742sf. 668sf. 10 Subtotal 50,528sf. 45,475sf. 235 Retail Building 15,034sf. 13,530sf. 68 Total 65,562sf. 58,902sf. 303 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 illustrates the development of Outlot C with a 15,034 square foot retail building and an additional 30 parking stalls. The 330 parking stalls shown on the site plan exceeds the 303 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 concrete 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 the off-street parking area have been previously approved by 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. Secondary loading occurs via at grade service doors at the southwest corner of the building on the west elevation. The expectation is that the convenience food use will utilize the existing loading facilities of the principal building for deliveries. Drive Through. There is an existing drive through service window on the east elevation of the building that will be used by the convenience food use. The drive through has limited stacking space of four cars from the service window. Anecdotally, we have observed that drive through windows for sandwich convenience restaurants are not often as busy as full-menu convenience food uses. Exterior Lighting. The exterior lighting within the subject site was reviewed as part of the Conditional Use Permit amendment approved on 5 February 2024. The exterior lighting complies with the requirements of the Zoning Ordinance. Occupancy of the convenience food use within the existing principal building will not affect exterior lighting. Signs. The initial Conditional Use Permit approval allows 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 any new signs for the propose convenience food use will 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. SIPA. The proposed occupancy of the existing principal building does not involve site improvements or public improvements beyond those addressed by the 12 February 2024 Conditional Use Permit to expand the structure. As such, it is not necessary for the developer to enter into a Site Improvement Performance Agreement as may be required by Section 11-4-7 of the Zoning Ordinance. 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 Conditional Use Permit amendment for Lot 1, Block 1 Parkview Retail subject to the following conditions: 5 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. Installation of new signs for the proposed use shall require a sign permit subject to review and approval of the Zoning Administrator. 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. Adam Flaherty, City Administrator/Finance Director Audra Etzel, City Clerk Ron Wagner, City Engineer David Kendall, City Attorney Barb Williams, Building Technician Site Location Map 230 ft Overview Legend Roads CSAHCL CTYCL MUNICL PRIVATECL TWPCL Highways Interstate State Hwy US Hwy City/Township Limits c t Parcels 88TH STREET NEPARISH AVENUE NE (CSAH NO. 42)90TH STREET NE (CSAH NO. 39)EEEEGESSSSSSSSNO PARKINGNO PARKINGNO PARKINGNO PARKINGNO PARKING 1234PICKUP WINDOWMENU BOARD ANDORDER SPEAKERE-COMMERCEEXISTING HYDRANT TO REMAINCLEARANCE ARMPROPERTY LINESETBACK LINEEASEMENT LINELOT LINERETAINING WALLCONCRETE PAVEMENTNUMBER OF PARKING STALLSTRANSFORMERSITE LIGHTINGEXISTINGPROPOSEDFENCEXXHEAVY DUTY BITUMINOUS PAVEMENTNORMAL DUTY BITUMINOUS PAVEMENTTRAFFIC SIGNPOWER POLEBOLLARD / POSTCONCRETE SIDEWALKSITE LEGENDTGRAVEL5CURB AND GUTTERPOND NORMAL WATER LEVELTIP-OUT CURB AND GUTTER0'30' 60' 90'C:\USERS\WILL.HUSTON\DC\ACCDOCS\RCI\COBORN'S INC-\PROJECT FILES\OTSEGO, MN\2024 BUILDING ADDITION\CIVIL\CAD\EXHIBITS\COBORN'S - SK05.DWGX005OVERALL SITE CONCEPTCommon Ground AllianceCall 48 Hours before digging:811 or call811.comNEW RETAIL BUILDINGOTSEGO, MNOTSEGO OUTLOTREVISIONSNUMBERDATEProject Number: SRC23082.02.29.24NOTICE: This document ("Instrument ofService") was prepared by RiceCompanies, Inc. ("RCI") specifically forthe referenced project and is not intendedfor any other use. RCI retains allcommon law, statutory and other reservedrights, including copyrights. ThisInstrument of Service shall not be used onother projects, for additions to this projector for completion of this project by otherswithout RCI's prior written consent. Anyunauthorized use of this Instrument ofService shall be prohibited.Copyright Rice Companies, Inc. 2024. All rights reserved.320.252.0404RICECOMPANIES.COMWRHc......... 1 FINDINGS & DECISION CONDITIONAL USE PERMIT AMENDMENT/SITE AND BULDING PLAN REVIEW LOT 1, BLOCK 1 PARKVIEW RETAIL APPLICANT: Coborn Realty Company LLC APPLICATION: Request for a Conditional Use Permit amendment to allow a convenience restaurant with drive through service. CITY COUNCIL MEETING: 11 March 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 and amended on 12 February 2024 for the existing use of the subject site. E. The applicant is proposing to add a convenience food restaurant with drive through service window, is a conditional use within the B1 District; the proposed use 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 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. Inclusion of a convenience food use within the principal building provides a sought-after business in the community furthering the City’s economic development goals. 2 2. The proposed use's compatibility with present and future land uses of the area. Finding: The subject site is surrounded by existing and planned land uses shown in the table below. The existing commercial use of the property is generally compatible with the area. The location of the convenience food use within the principal building and drive through being on the north elevation will avoid any potential compatibility issues with the proposed use and 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 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 use complies 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 proposed 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 meaning that the City has adequate utility infrastructure and other public service capacity to accommodate the expanded use. G. The planning report dated 2 March 2024 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 6 March 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 7-0 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. 3 2. An ingress/egress and cross parking easement shall be recorded over Lot 1, Block 1, Outlot C, and Outlot D, Parkview Retail, subject to review and approval of the Zoning Administrator. 3. Installation of new signs for the proposed use shall require a sign permit subject to review and approval of the Zoning Administrator. (Remainder of page is intentionally left blank.) 4 ADOPTED by the Otsego City Council this 11th day of March, 2024. MOTION BY: SECONDED BY: IN FAVOR: OPPOSED: CITY OF OTSEGO __________________________________ Jessica L. Stockamp, Mayor ATTEST: __________________________________ Audra Etzel, City Clerk