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HomeMy WebLinkAbout7B Klingberg/Staber Concept 4646 Dakota Street S.E. Prior Lake, MN 55372-1714 STAFF REPORT AGENDA ITEM: SUBJECT: PREPARED BY: PUBLIC HEARING: DATE: 7B DISCUSSION OF A CONCEPT PLAN FOR THE DEVELOPMENT OF A PORTION OF THE KLINGBERG AND ST ABER PROPERTIES JEFF MATZKE, PLANNER _YES X NO-N/A NOVEMBER 24, 2008 INTRODUCTION Bradford Development of Mankato has submitted a concept plan for development of the Klingberg/Staber Properties. This site is approximately 3.5 acres (net) in size, and is located along the south face of County Road 21, East of West Avenue and west of Duluth Avenue. The property is vacant and largely wooded land. The site are zoned C-3, Specialty Business (Downtown District), and designated as C-TC, Town Center on the 2030 Comprehensive Plan Land Use Map. The developer has submitted a concept plan for the development of this site with a three-story building with 57-59 senior housing units. DISCUSSION . The purpose of this item is to discuss the concept development of the site, and to allow the Planning Commission to voice any particular concerns or ideas about the proposed development. For your reference, the C-3 Zoning District and Senior Care Overlay District Ordinance have been attached to this report as well as a market study conducted for the Prior Lake area. This discussion is for informational purposes only. This concept plan, along with any Planning Commission comments will be forwarded to the City Council. For discussion purposes, the staff has identified the following issues: Land Use: · The developer is requesting the implementation of a Senior Overlay District on the property. Does the development meet the criteria for the Senior Care Overlay, particularly the proximity to support facilities? Access I Traffic: · What modifications to traffic patterns will the development generate for West Avenue? Is a traffic study necessary? . With the expansion of County Road 21 additional right-of-way along the northern boundary of this property may be required as well as right-of-way along West Avenue for future turn lanes. 1:\08 files\08 concepts\klingberg-staber property\p~cltyofpriorlake.com Phone 952.447.9800 / Fax 952.447.4245 · Access may be difficult for the remaining C-3 property to the east unless provided through this development. Will an access agreement/easement be drafted to provide access betweeh the properties? Design: · Grading on the south cannot be greater than 4:1 slopes or 3:1 slopes near wetland or ponding areas. The grades on the south side of the property appear greater than these requirements. In addition, would the developer and adjacent property owner to the east consider grading the hill at the southeast corner of the property? · The developer is suggesting the use of the Senior Care Overlay District to allow for possible modifications to the C-3 Zoning Ordinance. In accordance with the provisions of the Senior Care Overlay District what modifications to the underlying C-3 Zoning District and/or Elderly Housing land use is the developer requesting? . A tree inventory has not been submitted as part of the concept application. The developer will want to take advantage of preserving any large significant tree areas. Wetlands: . How will the proposed development impact existing wetlands? Once wetland delineations have been submitted, staff will determine impacts and necessary modifications. Stormwater: . The project will be required to meet all stormwater management rules in affect at the time of the application submittal. This may include stormwater rate, volume, and quality. . Additional ponding may be required near the northwest corner of the property in the future as part of the County Road 21 expansion. ACTION REQUIRED: No formal action is required at this time. The Planning Commission should provide the developer with any comments or concerns about this concept plan. Neither the Planning Commission's nor the City Council's comments will be binding and the developer should not rely on any statements made by individual Planning Commissioners or Council Members. Any future plans must be processed with the appropriate hearings and public participation. ATTACHMENTS: 1. Location Map 2. Concept Plan and Market Study 3. C-3 Ordinance & Senior Care Overlay District Ordinance 1:\08 files\08 concepts\klingberg-staber property\pc report. doc 2 SENIOR HOUSING COMPLEX CONCEPT PLAN \\\' .l. !J - \ \ ( - ( I ~ I;-- ~ - \\ ~ Ids 7 ~ f--- ;...-: \~ j L-1 ~ ~ ~ D4/(or4 Sr '" /J I S~ -'- ~ ,.-- f------ ~I-- E4GL.~ - I--r----r--r--- CR.~~k 4 II IV) I f7 S€ ~ - .... '''U'UL >3, "" ~ I I I I m ~r-- I I I W 'I T-- I I ~ I CJ) II I II, 1 w ~ p .-. ....." .. ~ I ~T SE w I - L I I I I I ~ I I I 1111 - ~ rn:rJIII1lIIIJ f--- MJ II I '- ~ l,;A t:'=i ~I~ - ) N -- + u ~II~ - - Feet 1\ ____ ,-, I~ ---- o 125 250 500 750 1,000 i~rN~V I:: :; ;~O~i: f] By ______ II I ...t" June 18, 2008 Mr. William Jaffa Executive Director Scott County Community Development Agency 323 Naumkeag Street Shakopee,MN 55379 RE: Potential Demand for Adult, Independent Senior Housing in Prior Lake, Minnesota Dear Mr. Jaffa: As requested, Maxfield Research Inc. has completed a very preliminary assessment of the potential demand for market rate, adult, independent senior housing (rental) that would be located on a site in Prior Lake, Minnesota. As we understand, you are considering the potential development of adult/few services senior housing in the community. Our initial assessment indicates that the defined Prior Lake Market Area could support 59 units of adult/few services housing that would be targeted to meet the needs of independent, older adults and seniors. Because there is additional independent senior housing in many of the communities that surround Prior Lake, we have limited the draw area for this product, but have allowed that a higher proportion of seniors with moderate incomes may move to Prior Lake and seek out this type of housing. Weare not aware of any pending senior developments in Prior Lake at this time, although new senior housing has recently opened in the community (Shephard's Path). Prior Lake enjoys a strong reputation in Scott County as a highly desirable residential location. We believe that the community will continue to attract a wide variety of residents and that seniors currently living in Prior Lake will want to remain and that others in the surrounding area will choose Prior Lake as a residence to take advantage of conveniently located goods and services and the amenity provided by the Lake. We defined a Market Area for adult/few services senior housing in Prior Lake that includes the communities of Prior Lake, Savage, Spring Lake Township and Credit River Township. We estimate that this Market Area will account for approximately 60% ofthe potential draw for the proposed housing product. The remaining 40% of demand will come from outside of this area from senior households that consider Prior Lake to be a highly desirable community and are looking for the features and amenities that would be offered by the proposed development. We have projected that a higher proportion of target households would come from outside of the defined Market Area because of Prior Lake's current high quality reputation in the market and high level of desirability in the Twin Cities Metro Area. 615 1st Avenue NE, #400, Minneapolis, MN 55413 (612) 338-0012 (612) 904-7979 www.maxfieldresearch.com Mr. William Jaffa Scott County CDA June 18, 2008 Page 2 The 40% of demand from outside of the Market Area includes prospective residents who have previous ties to the area or parents of adult children currently living in the draw area who would move there to be closer to their families. We also believe that Prior Lake has a regional appeal for seniors from other locales who would move to Prior Lake because of its current qualities and characteristics. As shown on Table 1, since 2000, the number of households in the Market Area has increased by just over 35%. Population increased by 35%. Both of these increases are significant and reflect growth rates for the past eight years that is substantially higher than that of the Twin Cities Metro Area. Over the next five years, from 2008 to 2013, strong growth is projected to continue with the overall population forecast to increase by 17% and overall households expected to also increase by 17%. A review of senior population and household growth trends reveals that adult households age 55 and over are projected to increase in the Prior Lake Market Area by 2,241 households over the next five years (2008 to 2013). This is a growth rate of 48.4%. Those age 65 and over are projected to increase by 979 households or 53.4%. Senior households age 75+ are projected to increase by 249 households or 44.1 %. The significant growth projected among households age 55 to 64 suggests that a portion of this group may want their aging parents to live in closer proximity to them, creating an additional segment of the potential demand for senior housing in Prior Lake. Table 1 presents this information. Table 2 presents information on the incomes of Market Area older adult and senior households. As shown, as of 2008, there were an estimated 3,646 households age 55 and over that are estimated to have annual household incomes of at least $35,000 and would be age and income- qualified for the proposed development. Another 313 households age 55 and over that own their own homes but currently earn between $25,000 and $35,000 would also be potential candidates for the proposed housing if they sold their homes and invested a portion of the proceeds toward funding the cost of alternative housing. Household homeownership rates from the 2000 Census were applied by age group. These proportions were 77% of householders age 75+, 90% of householders age 65 to 74 and 94% of householders age 55 to 64. These proportions are applied to the moderate income household base, those that earn between $25,000 and $35,000 per year. MAXFIELD RESEARCH INC. Mr. William Jaffa Scott County CDA June 18, 2008 Page 3 TABLE 2 OLDER ADULT (55+) INCOME DISTRIBUTION PRIOR LAKE MARKET AREA 2008 & 2013 Sources: Claritas, Inc.; Maxfield Research Inc. MAXFIELD RESEARCH INC. Mr. William Jaffa Scott County CDA June 18, 2008 Page 4 Our analysis identified two adult/few services rental developments in the Prior Lake Market Area. These developments are age-restricted and provide housing for fully, independent seniors (those that do not need or want services). Older adult and senior households earning at least $30,000 annually would qualify for the proposed development based on an income allocation of 40% of income toward housing. The average home price in Savage and Prior Lake as of 2008 was $328,920. A more conservative average sale price for older homes, those 15 years and older, and excluding the highest priced sales is $258,800. A household with a home priced at the average sale price of $258,800 could obtain an additional roughly $800 per month that could be used toward housing costs. A household with an annual income of $15,000 who owns their home could afford senior housing by utilizing a portion of the proceeds from a home sale. Our demand analysis applies an estimated capture rate for each age cohort based on their projected propensity to move to alternative senior housing as well as our experience in this market with adult/few services senior rental developments. Historically, adult/few services developments, especially those that are affordable, have been well-received in the Twin Cities Metropolitan Area and have performed very well against other higher service levels (congregate, assisted living). Our demand analysis applied the following capture rates to each age cohort: 55 to 64 - 0.5% 65 to 74 -7.5% 75+ - 18.0% These capture rates were been developed by Maxfield Research Inc. and reflect our experience in Scott County and the Twin Cities market, the propensity of each age group to move to alternative housing and the general competitiveness of the market (i.e. available product choices) in the area in which the proposed development would be located. Our demand analysis results in total potential demand for 47 adult independent units as of 2008 and increasing to 72 units by 2013. The analysis segments the demand between ownership independent senior housing without services and independent rental senior housing without services (40% ownership and 60% rental). We have subtracted all units that are age-restricted with no services (rental and ownership) within their respective categories in the demand calculation. MAXFIELD RESEARCH INC. . . June 18, 2008 Page 5 Mr. William Jaffa Scott County CDA Table 3 presents our preliminary potential demand for age-restricted senior units in the Prior Lake Market Area. TABLE 3 PRELIMINARY MARKET RATE ADULTIFEW SERVICES HOUSING DEMAND PRIOR LAKE MARKET AREA 2008 & 2013 , 2013 2008 A e of Householder 55-64 65-74 75+ -- 107 185 179 94% 90% 77% -- 101 166 138 3,736 1,568 377 3,836 1,734 515 A e of Householder 55-64 65-74 75+ -- 63 127 123 x 94% 90% 77% -- 59 114 95 # of Households wi Incomes of $20,000 to $29,9991 (times) Homeownership Rate (equals) Potential Market (plus) # of Households wi Incomes of $30,000+1 (equals)Total Potential Market Base (times) Potential Capture Rate (equals) Demand Potential Total Market Rate Demand Potential + 2,573 ---2:J2. 2,632 1,089 255 350 7.5% 18.0% x 0.5% 7.5% 18.0% 82 63 19 130 93 158 242 .. Adult Adult Rental O~ip Rental x 60% x 40% x 60% 95 97 145 + 63 + 32 + 48 158 129 194 91 78 91 67 51 103 x 0.5% 13 O~ip x 40% 63 (times) % for housing wlservices & wlo services (equals) Demand potential (plus) Demand from Outside Market Area (40%) (equals) Total Demand Potential (minus) Existing Competitive and Pending Units2 (equals) Long-term Demand (times Percent ca turable at Site + 42 105 78 27 1 2013 income-qualified figures adjusted for inflation ($34,999K or more + homeowners wi inc. of$22.5K - 34,999K) 2 Competitive existing and pending units include adult rental/ownership at 95% and 92% OCCup. (equilibrium). Source: Maxfield Research Inc. MAXFIELD RESEARCH INC. ..,~ Mr. William Jaffa Scott County CDA June 18, 2008 Page 6 Table 4 shows a suggested unit mix, sizes, and rents for an adult/few services development in Prior Lake, Minnesota. As shown on the table, we suggest that rents begin at roughly $850 per month for a one-bedroom unit and range to $1,450 per month for a two-bedroom plus den unit. We believe there is demand for an age-restricted independent building in the community. Township residents typically have larger residences with acreage and are more likely to prefer larger size units (i.e. two-bedroom and two-bedroom plus den units). We recommend that you offer a balanced mix of unit sizes to capture sufficient demand from both segments of the market. TABLE 4 PRELIMINARY SUGGESTED UNIT MIX/SIZES/RENTS SITE IN PRIOR LAKE June 2008 Unit Type lBR/lBA 1BR+Den/1.5BA 2BR/2BA 2BR+Den/2BA Total Preliminary # of Units % of Total 14 28.0% 12 24.0% 16 32.0% 8 16.0% 50 100.0% Square Feet 725 875 950-1,050 1,220-1,250 Rent $850-$895 $975-$1,050 $1,150-$1,200 $1,350-$1,450 Rent! Sq. Ft. $1.17-$1.23 $1.11-$1.20 $1.14-$1.21 $1.11-$1.16 Note: Rent includes water, sewer, and trash. Rents are quoted in 2008 dollars. Source: Maxfield Research Inc. If you have any questions or need additional information, please contact me. Sincerely, MAXFIELD RESEARCH INC. Vf!{'! tOf(L Mary C. Bujold President MAXFIELD RESEARCH INC. SECTION 11 06A SENIOR CARE (SC) OVERLAY DISTRICT SUBSECTIONS 1106A.100: 1106A.200: 1106A.300: 1106A.400: 1106A.500: 1106A.600: 1106A.700: 1106A.800: Purpose and Intent Definitions Permitted Uses Application Criteria Modifications Restrictive Covenant and Development Contract Administration 11 06A.1 00: PURPOSE AND INTENT. The intent in allowing Senior Care as an overlay district is to encourage the development of senior care facilities and to facilitate the development of such facilities. The Senior Care (SC) Overlay District is established for the purpose of allowing senior care facilities in close proximity to support services and complimentary land uses. It is the intent of this District to provide for flexibility in the siting and development of such facilities necessary to facilitate the development and construction of senior care facilities such as assisted living and congregate care developments. It is also intended to implement the housing goals and policies in the City's Comprehensive Plan. 1106A.200: DEFINITIONS. Assisted Living Facility. A residential facility providing a combination of housing, meals, support services, limited medical care and assistance with activities of daily living. Congregate Care Facility. A residential facility designed to accommodate independent living which also provides a variety of support services such as meals, laundry, housekeeping, transportation and social and recreational activities. Senior Care Facilities. A residential facility meeting the definition of elderly housing in subsection 1101.1000. Services available to residents cover a broad range of activities from social opportunities to medical care. The term includes assisted living and congregate care. It does not include nursing homes licensed by the State of Minnesota. (Amd. ord. 01-10, pub. 9/8/01) 1106A.300: PERMITTED USES. Land uses permitted in the SC Overlay District are senior care facilities, assisted living facilities and congregate care facilities. The specific details of these uses must be approved as part of the application for the overlay district. 1106A.400: ApPLICATION. The SC Overlay District may only be applied in the following use districts: R-2, R-3, R-4, C-2, C-3 and C-4. In residential use districts, the allowable dwelling unit City of Prior Lake 1106/p1 Zoning Ordinance density for a senior care facility may not exceed the allowable density in the underlying use district. In the Commercial Use Districts, except for the C-3 Use District, the maximum dwelling unit density shall not exceed 30 dwelling units per acre. In the C-3 Use District, the maximum dwelling unit density shall not exceed 50 units per acre. The development of a senior care facility is subject to all applicable requirements of the underlying use district except as modified according to the provisions of subsection 11 06A.600. (Amd. Ord. 00-24 - pub. 11/11/00) 1106A.500: CRITERIA FOR ApPLICATION OF THE SENIOR CARE OVERLAY DISTRICT. (1) Proximity to Support Facilities. The applicant for any senior care overlay district proposed for development shall demonstrate that the proposed site is readily accessible to health care facilities, retail shopping, religious institutions, public transportation and other supporting facilities and activities. The City Council, in its sole discretion, shall determine the adequacy and availability of such supporting facilities. The degree to which the senior dare facility is in close proximity to these services and facilities will determine the degree to which incentives for development will be granted. (2) Incentives. As an inducement to encourage the development of senior care facilities, the City Council may consider certain incentives. These incentives include increases in building height, decreased setbacks, increases in floor area ratios and ground floor area ratios, modification of landscaping requirements, fee waivers, relaxation of controls on architectural materials, relaxation of fencing regulations, relaxation of parking lot landscaping requirements and relaxation of proof of parking requirements. In the C-3 Use District, the City Council may also consider a relaxation of open space requirements due to the proximity to Lakefront Park. In the initial application, the applicant shall provide a schedule showing which incentives are being sought and supporting evidence which shows the justification for the incentives, including an analysis of the degree to which the criteria in subsection 11 06A.500(1) have been met. The City Council, in its sole discretion will determine which, if any incentives will be granted to a specific project. 1106A.600: MODIFICATIONS. In addition to the incentives outlined in subsection 1106A.500(2), modifications to the requirements of the underlying use district may be approved. Any modifications requested pursuant to this section shall be identified in the initial application. Any modifications shall be consistent with the goals and policies of the Comprehensive Plan and shall be approved upon a finding that the modification does not significantly adversely affect surrounding properties. Such modifications shall be approved as part of the SC Overlay District and shall be included in the resolution approving the SC Overlay District and in the development agreement required in subsection 11 06A. 700. 11 06A.700 RESTRICTIVE COVENANT AND DEVELOPMENT CONTRACT. (1) Restrictive Covenant. Upon approval of an SC Overlay District for a senior care facility, the applicant shall record a restrictive covenant on the property that states they type and extent of care to be provided and limiting occupancy of the facility to no more than 20% of the residents under the age of 55 years. City of Prior Lake 1106A1p2 Zoning Ordinance (2) Development Contract. The City and developer of an SC Overlay District shall execute a Development Contract which shall incorporate the resolution approving the SC Overlay District and all conditions set forth in the resolution. The Development Contract shall require the developer to provide an irrevocable letter of credit provided by a financial institution licensed in the State of Minnesota and acceptable to the City. The letter of credit shall reference the Development Contract and be in an amount sufficient to insure the provision or development of improvements called for by the Development Contract. 1106A.800 ADMINISTRATION. An application for SC Overlay District shall be processed and administered under the provisions of Section 1108.200 of this ordinance. This application shall include identification of the overlay district boundaries and specific site development details. The submittal requirements are included in Section 1108.205. (Ord. 00-20 - pub. 9/9/00) (THIS SPACE INTENTIONALLY BLANK FOR FUTURE AMENDMENTS) City of Prior Lake 1106A1p3 :ro-::-- ..:.,' -..,' ~,'., ....: i '1~""!l.'I"';;;'0-;\C="~ . ','. . '. .)~mi1fj!:I'+?";' 1~~a'l '.' . .... > - ,'.::::,>' ~:> "I" tOP'11 t ... "~ "'hi.""!," ~~\;. 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