Item 4.1 M1 Mixed Use District3601 Thurston Avenue
Anoka, MN 55303
763.231.5840
TPC@PlanningCo.com
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MEMORANDUM
TO: Otsego Planning Commission
FROM: D. Daniel Licht
DATE: 25 November 2024
RE: Otsego – Zoning Ordinance; M-1 Mixed Use District
TPC FILE: 101.01
BACKGROUND
The City completed a study in 2018 to evaluate allowance and performance standards for multiple
family housing to consider supply and demand, land use compatibility, transportation and City services.
The recommendations of the 2018 Multiple Family Housing Study were subsequently incorporated
within the goals, policies, and plans of the 2023 Otsego Comprehensive Plan.
The 2023 Otsego Comprehensive Plan establishes a Mixed Use Land Use category to allow retail, service,
and office uses together with high density residential uses at locations designated on the Future Land
Use Plan. The Mixed Use land use category is recommended to be implemented by establishing a new
zoning district that sets forth specific requirements and performance standards for this type of
development. There is also the option to utilize PUD, Planned Unit Development Districts to approve
mixed use developments. However, two proposals for mixed use developments failed to receive City
Council approval based on deviations from what was intended to be the City’s allowed intensity and bulk
for mixed use development.
City staff has drafted a proposed Zoning Ordinance amendment to establish the M-1, Mixed Use District,
as recommended by the Comprehensive Plan. The proposed ordinance reflects the discussions held
during the 2018 Multiple Family Housing Study, 2023 Otsego Comprehensive Plan, and review of the
two prior development proposals. The Planning Commission will discuss the draft Zoning Ordinance
amendment at their meeting on 2 December 2024.
Exhibits:
Draft ordinance
Future Land Use Plan map
Item 4.1
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ANALYSIS
Allowed Uses. The uses to be allowed in the M-1 District are generally the same as those allowed in the
B-1, Retail Business District. The range of retail, service, and office businesses reflects that the district is
intended to be primarily a commercial zoning district that allows for high density residential housing.
Reflecting a more dense, urban development character, automotive oriented uses, including excluding
drive through facilities, are not allowed.
Multiple family dwellings are to be allowed as a conditional use subject to additional performance
standards addressing exterior materials, land use compatibility adjacent to existing or planned low
density residential development, off-street parking, and site access for pedestrians and vehicles.
The Planning Commission should discuss if townhouses should also be allowed as a residential dwelling
in areas planned for mixed use development.
Lot Requirements. Lots within the M-1 District will be required to be a minimum of one acre in area
and 200 feet in width, which is the same requirements as applied to lots within the B-1 District.
There is an additional minimum lot area requirement of 1,500 square feet per dwelling unit required for
multiple family housing. The proposed minimum lot area per unit requirement corresponds to the 22
dwelling units per acre guided by the 2023 Otsego Comprehensive Plan for multiple family uses within
areas guided for mixed uses. This is approximately twice the density allowed for areas guided for high
density residential uses by the Comprehensive Plan.
Minimum setbacks are also to be the same as required within the B-1 District. There is a requirement
for a 35 foot setback from any residential district. The paragraphs below describe that a greater setback
is required for multiple family residential uses abutting certain residential districts.
Building Height. The maximum height of principal buildings in the M-1 District is proposed to be five
stories or 65 feet. This is one story higher than the existing multiple family buildings within the City and
the recommendation of the 2018 Multiple Family Housing Study to allow multiple family buildings
within the R-7, Residential High Density District to a height of four stories or 48 feet. The additional
height is intended to allow either mixed commercial and residential uses within the same building or
additional housing units for stand-alone residential buildings consistent with the more intensive
development character of Mixed Use land uses guided by the 2023 Otsego Comprehensive Plan relative
to areas guided for High Density Residential Land use. City staff is also proposing to amend the height
provisions of the R-7 District as recommended by the 2018 Multiple Family Housing Study.
Off-Street Parking. The off-street parking requirements of the Zoning Ordinance currently do not
adequately address mixed use parking scenarios. For mixed use developments, there is typically an off-
set and overlapping ratio of peak parking demand that occurs throughout the day based on the
character of the residential, retail, service, and office uses. The City of Wayzata developed a standard
methodology for elevating the parking demand for mixed use development based on type of use,
weekday versus weekend, and time of day. City staff has reviewed this methodology and finds it to be a
functional tool for establishing parking requirements that would occur within the M-1 Districts,
reductions in parking requirements for multiple tenant commercial uses, and PUD, Planned Unit
Development Districts. This methodology is proposed to be added to Chapter 21 of the Zoning
Ordinance.
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Transition Requirements. M-1 District uses abutting areas guided for Low Density Residential and Low-
to-Medium Density Residential land uses are to be subject to additional limitations to ensure the
intensity of land use provides for a compatible transition. These provisions include:
Floor Area Ratio of 0.7 to provide greenspace within the development to limit the overall
intensity.
A minimum 50 foot landscape buffer yard between any residential element of a mixed-use
development and adjacent R-1, R-2, R-3, R-4, and R-5 District use.
Building height limited to 4 stories or 48 feet such that the multiple family use does not tower
over adjacent uses within R-1, R-2, R-3, R-4, and R-5 Districts.
CONCLUSION
The information outlined herein to establish the M-1 District and related performance
standards is provided for initial discussion by the Planning Commission. City staff is seeking
direction on the proposed language in advance of setting a public hearing to consider a
recommendation to the City Council to adopt the Zoning Ordinance amendment.
c. Adam Flaherty, City Administrator/Finance Director
Audra Etzel, City Clerk
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ORDINANCE NO.: 2024-XX
CITY OF OTSEGO
COUNTY OF WRIGHT, MINNESOTA
AN ORDINANCE AMENDING THE CITY CODE REGARDING ZONING DISTRICTS AND MIXED USES.
THE CITY COUNCIL OF THE CITY OF OTSEGO DOES HEREBY ORDAIN:
Section 1. Section 11-17-9.C of the Zoning Ordinance (General Yard, Lot Area and Building
Regulations - Minimum Lot Area Per Unit) is hereby amended to read as follows:
C. Multiple-family:
a. Residential Districts: Two thousand five hundred (2,500) square feet.
b. Mixed Use Districts: One thousand five hundred (1,500) square feet.
Section 2. Chapter 21 of the Zoning Ordinance (Off-Street Parking) is hereby amended to add the
following provisions:
11-21-13: MIXED USES. The minimum parking requirement for joint facilities that include office,
restaurant, retail, government, and/or multiple family residential uses within Mixed Use Districts
established by chapter 50 of this title are to be determined by the following calculation:
A. Multiply the minimum parking required for each individual use as required by section 11-21-8 of
this chapter by the appropriate percentage for each of the designated time periods set forth in
the following table:
Land Use Weekday Weekend
Time Periods
12:00
(Midnight)
-7:00A.M.
7:00A.M.
-6:00P.M.
6:00P.M.-
12:00A.M.
(Midnight)
12:00
(Midnight)
-7:00A.M.
7:00A.M.
-6:00P.M.
6:00P.M.-
12:00A.M.
(Midnight)
Office 5% 100% 5% 0% 10% 0%
Restaurant 10% 70% 100% 20% 70% 100%
Retail 0% 90% 60% 0% 100% 60%
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Land Use Weekday Weekend
Time Periods
12:00
(Midnight)
-7:00A.M.
7:00A.M.
-6:00P.M.
6:00P.M.-
12:00A.M.
(Midnight)
12:00
(Midnight)
-7:00A.M.
7:00A.M.
-6:00P.M.
6:00P.M.-
12:00A.M.
(Midnight)
Government 0% 100% 40% 0% 40% 25%
Multiple Family
Residential 100% 60% 100% 100% 75% 100%
B. Add the resulting sums for each of the designated time periods.
C. The minimum number of spaces required for the development shall be the highest sum among
the designated time periods.
Section 3. Section 11-50-1 of the Zoning Ordinance (Zoning Districts – Districts Established) is
hereby amended to add the following rows after R-MH, Residential Mobile Home Park District and before
Business Districts rows:
Mixed Use Districts:
M-1 Mixed Use District
Section 4. Section 11-68-8 of the Zoning Ordinance (R,7, Residential High Density District – Lot
Coverage, Height, and Bulk) is hereby amended to add the following rows after R-MH, Residential Mobile
Home Park District and before Business Districts rows:
C. All principal buildings shall be limited to a maximum height of three (3)four (4) stories or thirty
five feet (35')forty eight feet (48’).
Section 5. Chapter 70 of the Zoning Ordinance (Reserved) is hereby amended to read as follows:
CHAPTER 70
M-1, MIXED USE DISTRICT
Section
11-70-1: Purpose
11-70-2 : Permitted Uses
11-70-3: Interim Uses
11-70-4: Uses by Administrative Permit
11-70-5: Accessory Uses
11-70-6: Conditional Uses
11-70-7: Lot Requirements and Setbacks
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11-70-8: Maximum Building Height
11-70-1: PURPOSE: The purpose of the M-1 District is to provide for development of commercial
areas with opportunity for incorporating multiple family dwellings within areas guided by the
Comprehensive Plan for Mixed Uses.
11-70-2: PERMITTED USES: The following are permitted uses in a M-1 District:
A. Adult uses, principal and accessory.
B. Banks and other financial institutions.
C. Brew on premises.
D. Brewpubs.
E. Commercial recreational uses, indoor only.
F. Essential services other than transmission pipelines and transmission or substation lines in excess
of thirty three (33) kV and up to one hundred (100) kV.
G. Fitness centers and health clubs.
H. Funeral homes and mortuaries.
I. Governmental and public related utility buildings and structures, City of Otsego only.
J. Hotels.
K. Instructional classes.
L. On-site and off-site service businesses.
M. Offices, general and medical.
N. Parks, trails, play fields, playgrounds, and directly related buildings and structures, City of Otsego
only.
O. Pawnshops.
P. Private clubs or lodges serving food and beverages.
Q. Personal wireless service antennas located on a public structure, as regulated by Section 33 of
this Chapter.
R. Retail sales.
S. Restaurants (not convenience type).
T. Tattoo parlors.
11-70-4: USES BY ADMINISTRATIVE PERMIT: Subject to applicable provisions of this Section,
performance standards established by this Chapter, and processing requirements of Section 11-8-2, the
following are uses allowed in a M-1 District by administrative permit as may be issued by the Zoning
Administrator.
A. Open or outdoor sales, rental or display as an accessory use in association with an allowed
principal use provided that:
1. The area so occupied shall not exceed ten (10) percent of the principal building.
2. No storage or display of merchandise shall be permitted in required rear, side or front
yards and shall be limited to the area of the customer entrances.
3. The outdoor sales, rental or display area shall be included in the calculations for parking
spaces required for the use and shall not occupy space required for parking as stipulated
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by Section 21 of this Chapter, except as may be exempted for cause by the Zoning
Administrator.
B. Temporary, outdoor promotional events and sales provided that:
1. Promotional Events.
a. Such activity is directed towards the general public and includes grand openings,
carnivals, craft shows, flea markets, mechanical and animal rides and displays of
materials that are typically not sold or serviced on the site.
b. The event shall not exceed the period specified in the administrative permit and
in no case shall exceed three (3) consecutive calendar days per event.
c. There shall be no more than two (2) promotional events per calendar per year
per property.
2. Outdoor Sales.
a. Such activity is directed towards the general public and include warehouse sales,
sidewalk sales, inventory reduction or liquidation sales, distressed merchandise
sales, seasonal merchandise sales, and licensed transient merchant and transient
product merchant sales.
b. The following specific standards shall apply to all proposed temporary outdoor
sales activities allowed by this paragraph and by City Code business licensing
provisions in addition to other applicable building and safety code requirements
as determined by the Zoning Administrator.
(1) The maximum total time for temporary outdoor sales activities shall be
the period specified in the administrative permit and, in no case, shall
exceed sixty (60) days per calendar year per property.
(2) There shall be no more sales activities than those specified in the
administrative permit and, in no case, shall there be more than ten (10)
sales activities per year per property.
(3) Sales activities may be conducted within a required yard provided the
area is paved and the activity does not interfere with parking, traffic
circulation or emergency vehicle access. Temporary sales on unpaved
landscaped areas is prohibited.
c. General Standards:
(1) The event shall be clearly accessory to or promoting the permitted or
conditional use approved for the site. Only merchandise which is
normally manufactured, sold, or stocked by the occupant on the subject
premises on a regular or seasonal basis shall be sold and/or promoted.
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(2) Tents, stands, and other similar temporary structures may be utilized,
provided they are clearly identified on the submitted plan and provided
that it is determined by the Zoning Administrator that they will not impair
the parking capacity, emergency access, or the safe and efficient
movement of pedestrian and vehicular traffic on or off the site.
(3) The submitted plan shall clearly demonstrate that adequate off-street
parking for the proposed event can and will be provided for the duration
of the event. Determination of compliance with this requirement shall
be made by the Zoning Administrator who shall consider the nature of
the event and the applicable parking requirements of this Chapter.
Consideration shall be given to the parking needs and requirements of
other occupants in the case of multi-tenant buildings. Parking on public
right-of-way and streets is prohibited; except that parking on local streets
may be allowed on Saturday and Sunday only, provided that the
petitioner arranges for traffic control by authorized enforcement officers,
as approved in writing by the Zoning Administrator, at the petitioner’s
expense.
(4) Signage related to the event shall be in compliance with the temporary
sign standards of this Chapter and shall be allowed for the duration of the
event. Special signage for purposes of traffic direction and control may
be authorized by the Zoning Administrator; the erection and removal of
such signage shall be the responsibility of the applicant.
(5) The approved permit shall be displayed on the premises for the duration
of the event.
11-70-5: ACCESSORY USES: The following are permitted accessory uses in a M-1 District:
A. Commercial or business buildings and structures for a use accessory to the principal use but such
use shall not exceed thirty (30) percent of the gross floor space of the principal use.
B. Off-street parking as regulated by Section 21 of this Chapter.
C. Off-street loading as regulated by Section 22 of this Chapter.
D. Radio and television receiving antennas including single satellite dish TVROs three and one-half
(3.5) meters or less in diameter, short-wave radio dispatching antennas, or those necessary for
the operation of electronic equipment including radio receivers, federal licensed amateur radio
stations and television receivers, as regulated by Section 33 of this Chapter.
11-70-6: CONDITIONAL USES: The following are conditional uses in a M-1 District subject to the
procedures set forth in and regulated by Section 4 of this Chapter.
A. Convenience food restaurants without drive through facilities, provided that:
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1. The architectural appearance and functional plan of the building and site shall not be so
dissimilar to the existing buildings or area so as to constitute a blighting influence within
a reasonable distance of the lot.
2. At the boundaries of a residential district, a strip of not less than five (5) feet shall be
landscaped and screened in compliance with Section 19 of this Chapter.
3. Each light standard island and all islands in the parking lot landscaped or covered.
4. Parking areas shall be screened from view of abutting residential districts in compliance
with Section 16 of this Chapter.
5. Parking areas and driveways shall be curbed with continuous curbs not less than six (6)
inches high above the parking lot or driveway grade.
6. Vehicular access points shall be limited, shall create a minimum of conflict with through
traffic movements, shall comply with Section 21 of this Chapter and shall be subject to
the approval of the City Engineer.
7. All lighting shall be hooded and so directed that the light source is not visible from the
public right-of-way or from an abutting residence and shall be in compliance with Section
16 of this Chapter.
8. The entire area shall have a drainage system which is subject to the approval of the City
Engineer.
9. The entire area other than occupied by buildings or structures or plantings shall be
surfaced with blacktop or concrete which is subject to the approval of the City Engineer.
10. All signing and informational or visual communication devices shall be in compliance with
the provisions of Section 37 of this Chapter.
B. Day care facilities as regulated by Section 30 of this Chapter.
C. Essential services involving transmission pipelines and transmission or substation lines in excess
of thirty three (33) kV and up to one hundred (100) kV.
D. Governmental and public utility buildings and structures; other than City of Otsego.
E. Manufactured Home Parks, provided, that:
1. The minimum area required for a manufactured home park designation shall be twenty
(20) acres.
2. The following minimum lot requirements are satisfactorily met:
a. Lot area: Nine thousand (9,000) square feet.
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b. Lot width: Sixty feet (60').
c. Lot depth: One hundred feet (100').
3. The following principal structure setbacks are satisfactorily met:
a. Front yard:
Road Class Setbacks
From Centerline
Setbacks From
Right-Of-Way Lines
Principal arterial/minor arterial 130 feet 65 feet
Collector street 130 feet 65 feet
Local street 65 feet 35 feet
From cul-de-sac right-of- way n/a 35 feet
Where a lot is located at the intersection of two (2) or more roads or highways which
bound two (2) or more sides of the lot, no building shall project beyond the front yard line
of either road.
b. Side yards: Ten feet (10').
c. Rear yard: Twenty feet (20').
4. Accessory buildings, uses and equipment comply with the applicable provisions of
section 11-18-2 of this title.
5. The total ground area of all residential buildings does not exceed a lot coverage of thirty
percent (30%).
6. All residences be limited to a maximum height of one story or twenty five feet (25').
7. The manufactured home park is developed in accordance with the City subdivision
ordinance and all public improvement requirements incorporated therein.
8. A storm shelter is provided in compliance with Minnesota Statutes. The City may require
additional measures as determined necessary to safeguard the health and safety of
persons occupying the manufactured home park. Such measures may include, but shall
not be limited to, screening and/or landscape berms. All emergency storm protection
measures shall be subject to City Council approval.
9. The manufactured home park shall comply with Minnesota Statutes section 327.20 et
seq., or all applicable City ordinances, whichever is the more restrictive.
F. Multiple family dwellings within a stand-alone or mixed-use building, provided that:
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1. Minimum Lot Area: The lot shall comply with the following minimum requirements,
whichever is greater:
a. The minimum lot area required by Section 11-70-7.A of this title.
b. The minimum lot area per unit required by Section 11-17-9 of this title for
multiple family dwellings or senior housing.
c. Buildings on lots abutting a R-1, R-2, R-3, R-4, or R-6 district shall not exceed a
floor area ratio of seven-tenths (0.7).
2. Design and construction standards for principal and accessory buildings shall be as
specified by Section 11-17-4.D.1 of this title.
3. Building Height: Building height shall be as set forth in Section 11-70-8 of this title, except
that principal buildings on lots abutting a R-1, R-2, R-3, R-4 or R-5 district shall be limited
to four (4) stories or forty eight feet (48') in height, whichever is less.
4. Buffer Yard: A yard abutting a R-1, R-2, R-3, R-4 or R-5 district shall provide for a minimum
fifty (50) foot setback for all structures, off-street parking, or outdoor recreation areas to
be landscaped in accordance with the specifications established by Section 11-19-3.B of
this title.
5. Off-Street Parking:
a. The total number of off-street parking space shall be provided in accordance with
Section 11-21-13 of this title.
b. A minimum of one (1) space enclosed below the principal building for each unit
with one (1) or more bedrooms.
6. An internal site pedestrian circulation system consisting of sidewalks with a minimum
width of five feet (5') shall be defined and appropriate provisions made to protect such
areas from encroachments by parked cars or moving vehicles clear of any obstacles or
impediments.
G. Micro-distilleries with tasting rooms.
H. Parks and recreational areas owned or operated by private entities or public bodies; other than
the city of Otsego.
I. Personal wireless service towers and antennas not located on a public structure, as regulated by
Section 33 of this Chapter.
J. Theaters and other places of assembly; provided, that the site shall be served by a public street
of sufficient capacity to accommodate traffic which will be generated by the use.
K. Veterinary clinics and animal kennels, provided that:
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1. All areas in which animals are confined are located indoors and are properly
soundproofed from adjacent properties.
2. Animal carcasses are properly disposed of in a manner not utilizing on site garbage
facilities or incineration and the carcasses are properly refrigerated during periods prior
to disposal.
3. An animal kennel is permitted as a use accessory to the veterinary clinic provided that:
a. An indoor exercise area shall be provided to accommodate the periodic exercising
of animals boarded at the kennel. No outdoor exercising of animals shall be
permitted.
b. A ventilation system shall be designed so that no odors or organisms will spread
between wards or to the outside air and will be capable of completely exchanging
internal air at a rate of at least twice per hour. Air temperature must be
maintained between sixty degrees (60°) and seventy five degrees Fahrenheit
(75°F).
c. A room separate from the kennel area shall be provided of sufficient size to
adequately separate animals that are sick or injured from healthy animals.
d. Indoor animal kennel floors and walls shall be made of nonporous materials or
sealed concrete to make it nonporous.
e. Animal wastes shall be flushed down an existing sanitary sewer system or
enclosed in a container of sufficient construction to eliminate odors and
organisms and shall be properly disposed of at least once (1) per day.
f. All state health department and Minnesota pollution control agency
requirements for such facilities are met.
11-70-7: LOT REQUIREMENTS AND SETBACKS: The following minimum requirements shall be
observed in a M-1 District, subject to additional requirements, exceptions and modifications set forth in
this Chapter.
A. Lot Area: One (1) acre.
B. Lot Width: Two hundred (200) feet
C. Setbacks:
1. Front yard:
Setbacks Setbacks
From From Right-
Centerline of-Way Lines
10
65 feet 30 feet
Where a lot is located at the intersection of two (2) or more streets or highways which
bound two (2) or more sides of the lot, no building shall project beyond the front yard line
of either street.
2. Side yards: Ten (10) feet, unless if abutting a Residential District: Thirty-five (35) feet.
3. Rear yards: Twenty (20) feet, unless if abutting a residential district: Thirty-five (35) feet.
11-70-8: MAXIMUM BUILDING HEIGHT:
A. Principal building: Five (5) stories or sixty-five (65) feet, whichever is less.
B. Accessory building: Per Section 11-18-2.F of this Chapter.
Section 6. This Ordinance shall become effective immediately upon its passage and publication.
(Remainder of page intentionally blank – signature page to follow)
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ADOPTED by the Otsego City Council this ___ day of ________, 2024.
MOTION BY:
SECONDED BY:
IN FAVOR:
OPPOSED:
CITY OF OTSEGO
__________________________________
Jessica L. Stockamp, Mayor
ATTEST:
__________________________________
Audra Etzel, City Clerk
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FUTURE LAND USE PLAN00.510.25
Miles É
K:\cad_eng\PROJECTS\GIS\TPC\Otsego\Comprensive Plan 2012\Future Land Use Map
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LEGEND
Planning Districts
Rural
Rural Residential
LD Residential (Large Lot)
LD Residential
LMD Residential
MHD Residential
Mixed Use
Commercial
Office
Industrial
Light Industrial
Public/Quasi Public
COMPREHENSIVE PLAN 2023
ADOPTED:
AMENDED:
Res 2023-52,14 Aug 23
Res 2024-52, 22 Jul 24