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Item 4.4 Mixed Use District3601 Thurston Avenue Anoka, MN 55303 763.231.5840 TPC@PlanningCo.com 1 MEMORANDUM TO: Otsego Planning Commission FROM: D. Daniel Licht DATE: 16 April 2025 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 discussed the draft Zoning Ordinance amendment at their meeting on 2 December 2024. Based on direction from the planning Commission, City staff has noticed a public hearing for 21 April 2025 to consider amendment of the Zoning Ordinance to establish the M-1, Mixed Use District. Exhibits: Draft Ordinance Future Land Use Plan map Item 4.4 2 ANALYSIS Definitions. The proposed ordinance amendment includes adding a definition of Floor Area Ratio. Floor Area Ratio is the gross floor area of a building divided by the area of lot. Floor Area Ratio limits are used in the R-7 District and proposed for multiple family uses within the M-1 District that abut single or two- family zoning district to control the bulk of a structure so as to provide scale compatibility within the area. M-1 District: The following paragraphs describe the provision of the proposed M-1 District:  Comprehensive Plan. The purpose of the M-1 District is to implement the recommendations of the Comprehensive Plan for developments combining commercial and high density residential land uses. Properties within the City planned to develop with mixed uses subject to the provisions of the M-1 District are designated on the Future Land Use Plan map of the Comprehensive Plan.  Allowed Uses. The allowed uses within the proposed M-1 District mirror those of the B-1, Retail Business District with the following changes: o Minor auto repair is not allowed. o Convenience restaurants are not allowed drive through facilities. o Multiple family dwellings are allowed as a conditional use with the following additional performance standards when abutting a single or two family zoning district:  Floor Area ratio is limited to 0.7.  A 50 foot principal building setback and landscape buffer yard is required. o There must be a minimum of one enclosed parking space below the principal building for each multiple family unit with one or more bedrooms.  Lot Requirements. The minimum lot area and lot width requirements within the M-1 District are one acre and 200 feet, respectively. Mixed use or standalone multiple family developments will require a minimum of 1,500 square feet of lot area per dwelling unit. The effective minimum lot area requirement would be one acre or 1,500 square feet per dwelling unit, whichever is greater. This allows for 29 multiple family units and commercial uses within a one acre site or a larger site for 30 multiple family units or more.  Building Materials. Standalone or mixed use buildings that include multiple family uses are to provide for the same exterior finish as required for commercial buildings. This includes 65 percent brick, stone, or glass as the primary material for both quality and aesthetic purposes. Applying the same requirement for multiple family and mixed use building will ensure compatibility with surrounding commercial uses district and appropriate transitions to adjacent residential areas. 3  Building Height. The M-1 District is intended to allow both standalone commercial or multiple family buildings or buildings combining commercial and multiple family uses. The proposed height limits for the M-1 District provide that commercial or mixed use buildings would allow for buildings up to five stories in eight or 82 feet. The proposed height accommodates taller ceilings for first floor commercial space and more typical 12 foot ceilings for residential units above the first floor. The proposed building height also allows for either a flat or pitched roof. If the Planning Commission wishes to limit the overall height of the structure, the allowed building height in feet can be lowered to effectively mandate use of a flat roof. The proposed height for a standalone multiple family building would be accommodate four story multiple family building up to 54 feet. The proposed height is based on 12 feet of height for each story and the ability to accommodate a flat or pitched roof.  Zoning Map. Zoning districts are designated on the Zoning Map illustrating the establishment of allowed uses and performance standards for specific properties. The Interim Land Use Plan polices of the Comprehensive Plan that direct the Zoning Map is only to be amended to align with the Future Land Use Plan only when a development proposal is presented and approved by the City Council. As such, the Zoning Map is not to be amended at this time to zone properties to M-1 District. Off-Street Parking. The Zoning Ordinance must be amended to establish provisions for determining off- street parking requirements for mixed uses. Prior mixed use developments have been evaluated on a case-by-case basis. A methodology established by the City of Wayzata was reviewed by City staff and found to provide for an appropriate basis to evaluate the parking demand for mixed use developments where the commercial and residential uses therein will have parking needs based on the off-setting peak parking periods of the respective uses and not the cumulative total of the number of spaces required for each use calculated separately. City staff recommends incorporating this approach for calculating parking requirements for mixed use developments within Chapter 21 of the Zoning Ordinance. R-7 District Height. The 2018 multiple family housing study recommended increasing the allowed building height within the R-7, Residential High Density District to accommodate four story multiple family building. Based on 12 feet of height for each story and the ability to accommodate a flat or pitched roof, the allowed building height should be a minimum of 48 feet and up to 54 feet. Allowing a building height up to 54 feet will allow for either a flat or pitched roof. RECOMMENDATION City staff requests the Planning Commission review the proposed Zoning Ordinance amendment and make recommendations to the City Council for approval. POSSIBLE ACTIONS A. Motion to recommend approval of a Zoning Ordinance amendment regarding zoning districts and mixed uses as presented. B. Motion to table. 4 c. Adam Flaherty, City Administrator/Finance Director Audra Etzel, City Clerk Ron Wagner, City Engineer David Kendall, City Attorney 1 ORDINANCE NO.: 2025-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 11-2-2 of the Zoning Ordinance (Definitions) is hereby amended to add the following definition alphabetically: FLOOR AREA RATIO: The floor area, not including enclosed areas below grade or garage space, in square feet of all the several floors of buildings on a lot, divided by the area of said lot in square feet. Section 2. Section 11-17-4.D of the Zoning Ordinance (General Yard, Lot Area and Building Regulations – Building Type and Construction) is hereby amended to read as follows: D. Commercial, Office, Mixed Use, And Institutional Uses: The exterior of commercial, office, mixed use, and institutional buildings shall include a variation in building materials and forms to be distributed throughout the facade and coordinated into the design of the structure to create an architecturally balanced appearance and shall comply with the following requirements: 1. Business Districts (Except B-4 District)B-1, B-2, B-3, and M-1 Districts: a. The exterior building finish shall be composed of at least sixty five percent (65%) grade A materials; not more than thirty five percent (35%) grade B materials and not more than ten percent (10%) grade C materials. b. All sideselevations of the principal and accessory structures are to have essentially the same or coordinated harmonious exterior finish treatment. 2. B-4 District Uses And All Institutional Uses Regardless Of Zoning District: a. For any facadeelevation facing a public right-of-way, the exterior building finish shall be composed of at least sixty five percent (65%) grade A materials and/or integral color architecturally precast concrete panels with a form liner, tooled, natural stone veneer, brick face and/or cast stone type finish, not more than thirty five percent (35%) other grade B materials and not more than ten percent (10%) grade C materials. b. For all other facadeselevations, the exterior building finish shall be composed of a minimum of ninety percent (90%) grade A and grade B materials and not more than ten percent (10%) grade C materials. 2 Section 3. Section 11-17-9. 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 4. 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 or mixed use developments within other districts as may be allowed by 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% 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. 3 Section 5. 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 6. Section 11-68-8.C 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 7. 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 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. 4 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 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. 5 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. (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. 6 (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: 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 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. 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 8 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: 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. 9 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: 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 10 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 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: Ten (10) feet; unless if abutting a residential district: Thirty-five (35) feet. 11-70-8: MAXIMUM BUILDING HEIGHT: A. Principal building: 1. Commercial-Only or Mixed Use Buildings: Five (5) stories or eighty two (82) feet, whichever is less. 11 2. Multiple Family-Only Buildings: Four (4) stories or fifty four (54) feet, whichever is less. B. Accessory building: Per Section 11-18-2.F of this Chapter. Section 8. This Ordinance shall become effective immediately upon its passage and publication. (Remainder of page intentionally blank – signature page to follow) 12 ADOPTED by the Otsego City Council this ___ day of ________, 2025. MOTION BY: SECONDED BY: IN FAVOR: OPPOSED: CITY OF OTSEGO __________________________________ Jessica L. Stockamp, Mayor ATTEST: __________________________________ Audra Etzel, City Clerk 456738456738 456742 456742 456742 456742 456736 456739 456739456739 456719 456719 §¨¦94 456737 456718 EF137 456738 FUTURE LAND USE PLAN00.510.25 Miles É K:\cad_eng\PROJECTS\GIS\TPC\Otsego\Comprensive Plan 2012\Future Land Use Map DISCLAIMER: This product is for informational purposes and may not have been prepared for, or be suitable for legal, engineering, or surveying purposes. Users of this information should review or consult the primary data and information sources to ascertain the usability of the information. 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