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HomeMy WebLinkAbout10A - Gateway Redevelopment PUD O� PRION U 4646 Dakota Street SE Prior Lake, MN 55372 f 50"t, CITY COUNCIL AGENDA REPORT MEETING DATE: MARCH 9, 2015 AGENDA#: 10A PREPARED BY: DAN ROGNESS, COMMUNITY& ECONOMIC DEVELOPMENT DIRECTOR PRESENTED BY: DAN ROGNESS AGENDA ITEM: CONSIDER APPROVAL OF RESOLUTIONS RELATING TO "GATEWAY RE- DEVELOPMENT": 1) AMENDIING THE 2030 COMPREHENSIVE LAND USE PLAN FROM C-CC COMMUNITY RETAIL SHOPPING TO R-HD RESIDEW TIAL URBAN HIGH DENSITY; 2) APPROVING A PRELIMINARY PLANNED UNIT DEVELOPMENT PLAN; AND 3)APPROVING AN ORDINANCE AMEND- ING THE OFFICIAL ZONING MAP TO REZONE FROM C-2 GENERAL BUSI- NESS TO PUD PLANNED UNIT DEVELOPMENT DISCUSSION: Introduction The purpose of this agenda item is to consider a request from Dominium to de- velop a PUD project consisting of 165 senior rental units on a 2.5-acre site located easterly of Trunk Highway 13 on Gateway Street and Jordan Avenue. This pro- ject requires a Comprehensive Land Use Plan amendment and a Rezoning. The final development will be owned by Prior Lake Leased Housing Associates I, LLLP. History On February 2, 2015 the Planning Commission adopted a resolution authorizing the City staff to accept and process an application from Dominium for a Prelimi- nary PUD Plan for a project less than 10 acres. On February 17, the Planning Commission held a public hearing and further recommended an amendment to the Comprehensive Plan, approval of the Preliminary PUD Plan, and a rezoning to PUD. One person spoke at the public hearing in opposition to the project due to its large size on a small site and its significant height of four stories. Current Circumstances Dominium has a purchase agreement on a 2.4-acre commercial site currently owned by Wells Fargo. This site has a 23,650 square foot 1-story building that is 48%vacant. Existing business in the Gateway Center include McGeez Closet, Pizza & Pasta, Aprilia Dance Studio, and Prior Lake Shoe Service. Dominium's proposed redevelopment project will include a 4-story, 165-unit senior (55+) in- dependent-living, rental apartment building with associated underground and sur- face parking. The unit mix includes 124 1-bedroom, 8 2-bedroom, and 33 3- bedroom units, all as affordable to households at/below 60% of area median household income ($34,860 for 1-person; $39,840 for 2-person). Rent levels ap- proximately $933/month for a 1-bedroom, $1,120/month for a 2-bedroom, and $1.293 for a 3-bedroom unit. Dominium is also proposing to purchase property from the adjacent lot to the east that has an office building. That purchase of approximately 0.1 acre would bring Phone 952.447.9800 / Fax 952.447.4245/www•.cityofpriorlake.com the total development site up to 2.5 acres. Dominium may also purchase the car wash property on the corner of Jordan and 160th Street. If successful, then Do- minium may dedicate that property as park in order to meet the City's 10% park dedication requirement. Staff would work with Dominium on a plan to demolish the building and develop that space into a small park with trails and landscaping. The plan and zoning amendments are necessary in order to accommodate this type of project on a small redevelopment site. The High Density Residential land use in the 2030 Comprehensive Plan states, "Net densities between 7.1 and 20 units per acre may be allowed, where developments with higher density and those with a mix of housing styles will primarily be realized in Planned Unit De- velopments". Therefore, the application includes three proposed actions: 1. Amend the 2030 Comprehensive Land Use Plan from Community Retail Shopping (C-CC) to Residential Urban High Density (R-HD). 2. Approve a Preliminary PUD Plan for a 165-unit multi-family senior rental housing project. 3. Amend the Official Zoning Map from General Business (C-2) to Planned Unit Development (PUD). Conclusion Staff has evaluated this application based upon the following information as re- quired by city code: PHYSICAL SITE CHARACTERISTICS: Total Site Area: The area of the amendments consists of approximately 2.5 acres; additional property is being acquired from the lot to the east. Vegetation: The site is nearly void of vegetation, and it is probably at 95% im- pervious surface. Wetlands: The site is subject to the provisions of the State Wetland Conserva- tion Act; no identified wetlands currently exist within this property. Access: Access to the site is from a completed adjacent local street, Gateway Street and nearby access from Trunk Highway 13. Utilities: Municipal sewer and water services are in place for this site. 2030 Comprehensive Plan Designation: This property is designated for Com- munity Retail Shopping (C-CC) uses on the 2030 Comprehensive Plan Land Use Map and zoned as General Business (C-2). Adjacent Land Use and Zoning: Existing Use Land Use Designation Zoning North Commercial Offices C-CC C-2 Community Retail Shopping General Business South Commercial(Carwash) C-CC,Community Retail Shopping General Commercial Residential(Multi-family) R-HD, Urban High Density High Density Residential East Commercial Office C-CC C-2 Community Retail Shopping General Business West Commercial(Veterinarian) C-CC C-2 Community Retail Shopping General Business 2 BUILDING CHARACTERISTICS: Dominium as submitted a Preliminary PUD Plan that includes the following de- sign elements: 1. Unit Mix — 165 total, including 124 1-bedroom, 8 2-bedroom and 33 3- bedroom units. 2. Common Areas — lobby, office, salon, library, social, fitness, club room, theater and cards. 3. Height—4 stories (50' 6"). 4. Parking — 170 total, including 121 underground and 49 surface. 5. Setbacks—front = 30 feet; rear= 25 feet; west side = 25 feet; east side = 15 feet; parking setback = 10 feet. 6. Exterior — pitched/gable roof design; balconies; stone lower face; hardy board upper face; extensive windows. In comparison, the High Density Residential (R-3) Use District standards require a maximum height of four stories, front setback of 50 feet, rear setback of 25 feet, and side setbacks of 25 feet. These conventional standards may be exceeded in a planned unit development (PUD). Conclusion Comprehensive Land Use Plan Amendment: As identified above, this pro- posed Residential Urban High Density land use adjoins existing similar land use to the south and southeast. In fact, further high density exists on the southeast corner of 160th Street and Franklin Trail that includes the Scott County CDA's senior public housing units (4-story on back side). Preliminary PUD Plan and Official Zoning Map Amendment: The Zoning Ordinance requires findings to support that the City and its residents will benefit by creating a process which permits Planned Unit Development District that will allow for greater flexibility in the development of a parcel or property by tailoring the development to the site and neighborhood. Such benefits include, but are not limited to: (1) Provides a flexible approach to development which is in harmony with the purpose and intent of the City's Comprehensive Plan and Zoning Ordinance; Response: Housing goals and objectives in the Comprehensive Plan support providing opportunities for a variety of affordable high-quality housing, and maintaining a choice of and encouraging development of quality residential environments. (2) More creative, efficient and effective use of land, open space and public facilities through mixing of land uses; Response: A mix of more high-density housing with the surrounding commercial uses will expand the mix of land uses in the Gateway area. (3) Create a sense of place and provide more interaction among people; Response: This additional high-density housing project will provide a strong residential focus in the Gateway area, allowing more opportunities for interaction between residents and 3 businesses, including the core downtown area that is % mile from this location. (4) Increase economic vitality and expand market opportunities; Response: This project will add considerable short-term (1 year) construction jobs, and the estimated new 200+ residents will increase market opportunities for local businesses. (5) Support long-term economic stability by strengthening the tax base, job market and business opportunities; Response: This project's total development cost is nearly $32 million dollars with an expected county estimated market value of $16.5 million; the current market value of the commercial property is $1.75 million. (6) Increase transportation options, such as walking, biking or bussing; Response: By adding 200+ new residents in this area, new bus/van routes are likely, and these independent living residents will likely be walking to nearby parks and downtown. (7) Provide opportunities for life cycle housing to all ages; Response: This housing is affordable to seniors (55+) with incomes at/below 60% of the area median ($34,860 for 1-person; $39,840 for 2- person); initial rent levels are $933/month for 1-bedroom, $1,120/month for 2-bedroom, and $1,293 for 3-bedroom units. (8) Provide more efficient and effective use of streets, utilities, and public facilities that support high quality land use development at a lesser cost; Response: More high-quality housing units concentrated at a higher density in one location makes more efficient use of existing street, sewer and water infrastructure. (9) Enhanced incorporation of recreational, public and open space components in the development which may be made more useable and be more suitably located than would otherwise be provided under conventional development procedures. The PUD district also encourages the developer to convey property to the public, over and above required dedications, by allowing a portion of the density to be transferred to other parts of the site; Response: On-site green space, including walking trails and patios, are provide on this site, thereby replacing a commercial site that was nearly 95% impervious with building and blacktop parking lot. (10) Preserves and enhances desirable site characteristics and open space, and protection of sensitive environmental features including, but not limited to, steep slopes, wetlands, and trees. Where applicable, the PUD should also encourage historic preservation, re-use and redevelopment of existing buildings; Response: Redevelopment is occurring without preservation; however, the future long-term viability of this building for commercial use is uncertain based on recent history of vacancies and bank ownership. 4 (11) High quality of design compatible with surrounding land uses, including both existing and planned; Response: This site and building will be developed with all aspects of high quality, including building exteriors, landscaping, lighting, parking and green space. Section 1108.600 of the Zoning Ordinance identifies the following policies for amendments to the Official Zoning Map: • The area, as presently zoned, is inconsistent with the policies and goals of the Comprehensive Plan, or the land was originally zoned erroneously due to a technical or administrative error, or • The area for which rezoning is requested has changed or is changing to such a degree that it is in the public interest to rezone so as to encourage redevel- opment of the area, or • The permitted uses allowed within the proposed Use District will be appropri- ate on the subject property and compatible with adjacent properties and the neighborhood. This area is being viewed transitioning from a mix of more commercial than resi- dential land uses (north of 160th Street and west of Franklin Trail) to a stronger high-density residential mix with commercial. In other words, there is an ex- change of 165 living units for 23,650 square feet of commercial space. ISSUES: The "good times" of the Gateway commercial area occurred when a grocery store, a car parts store, and a drugstore were in business. Since each of these retail operations left, the building has remained partially vacant, suggesting that commercial is not the correct classification of this area. The developer has done considerable research regarding the city market. They found that the city boasts a large population of young growing families and active seniors. It is their expectation based upon 40 years of market experience that seniors who want to stay in Prior Lake will move from their single family dwellings into this housing. The vacated single family housing will then likely become occupied by young families. The result will be a more robust market for the downtown area and population living conveniently close to both Memorial and Lakefront Parks. The key question is whether this proposed high density residential development of 165 units at 4 stories fits well into the Gateway neighborhood as part of a mixed use commercial and residential district. Is the impact to the neighborhood and to the city as a whole positive in relationship to a change from a commercial to residential land use at this location? The staff believes the answer is affirmative on both counts, and the Planning Commission concurred with its 4-0 recommendation to proceed with the plan amendment and PUD. ALTERNATIVES: 1. Motion and a second to approve a resolution amending the 2030 Com- prehensive Land Use Plan from Community Retail Shopping (C-CC) to Residential Urban High Density (R-HD). 2. Motion and a second to approve a resolution approving a Preliminary PUD Plan to be known as "Gateway Redevelopment". 5 3. Motion and a second to approve an ordinance amending the Official Zon- ing Map from General Business (C-2) to Planned Unit Development (PUD). 4. Motion and a second to table action and ask City staff to provide additional information as requested by the Council. 5. Motion and a second to deny one or more amendments based on findings of fact. RECOMMENDED Alternatives#1, #2 and#3 MOTION: ATTACHMENTS: 1. Location Map 2. Amended Comprehensive Land Use Plan Map and Official Zoning Map 3. Preliminary PUD Plans 6 Or� R OUrn 4646 Dakota Street SE �INNESO Prior Lake, MN 55372 RESOLUTION 15-xx A RESOLUTION AMENDING THE 2030 COMPREHENSIVE LAND USE PLAN FROM C-CC COMMUNITY RETAIL SHOPPING TO R-HD RESIDENTIAL URBAN HIGH DENSITY FOR PROPERTY ON GATEWAY STREET Motion By: Second By: WHEREAS, Dominium has applied to the City of Prior Lake to amend the 2030 Comprehensive Land Use Plan for property at 5119 Gateway Street SE ("Parcel") in order to allow a proposed multi- family senior rental housing project; and WHEREAS, The City Council desires to amend the Comprehensive Land Use Plan Map of the 2030 Comprehensive Plan in order to re-guide the land use on this Parcel from Community Retail Shopping (C-CC) to Residential Urban High Density(R-HD); and WHEREAS, The 2.5-acre Parcel will be rezoned to a Planned Unit Development(PUD) in order to allow a residential development at a higher density than what is allowed in the High Density Residential (R-3) Use District; and WHEREAS, After a public hearing was held on February 17, 2015, the Planning Commission recommended approval of the proposed amendment to the Comprehensive Land Use Plan. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. The City Council of Prior Lake approves an amendment to the 2030 Comprehensive Land Use Plan (Figure 3.2), amending the Parcel (Lot 2, Block 1 and a portion of Lot 1, Block 1, Gateway Center 1St Addition)from Community Retail Shopping (C-CC)to Residential Urban High Density(R-HD), subject to Metropolitan Council approval, and authorizes city staff to submit such amendment to the Metropolitan Council. PASSED AND ADOPTED THIS 9th DAY OF MARCH, 2015. VOTE Hedberg Keeney McGuire Morton Thompson Aye ❑ ❑ ❑ ❑ ❑ Nay ❑ ❑ ❑ ❑ ❑ Absent ❑ ❑ ❑ ❑ ❑ Abstain ❑ ❑ ❑ ❑ ❑ Frank Boyles, City Manager O� PR 0 UU 4646 Dakota Street SE ` ,rNTa-soft' Prior Lake, MN 55372 RESOLUTION 15-xx A RESOLUTION APPROVING A PRELIMINARY PLANNED UNIT DEVELOPMENT PLAN TO BE KNOWN AS "GATEWAY REDEVELOPMENT" Motion By: Second By: WHEREAS, The Prior Lake Planning Commission conducted a public hearing on February 17, 2015 to consider an application from Dominium for a Preliminary Planned Unit Development(PUD) Plan for Gateway Redevelopment, consisting of a 165-unit senior rental housing development; and WHEREAS, Notice of the public hearing on said Planned Unit Development has been duly published and posted in accordance with the applicable Minnesota Statutes and Prior Lake Ordinances; and WHEREAS, All persons interested in this issue were afforded the opportunity to present their views and objections related to the Preliminary PUD Plan of Gateway Redevelopment for the record at the Planning Commission hearing; and WHEREAS, The Planning Commission and City Council have reviewed the Preliminary PUD Plan according ^ to the applicable provisions of the Prior Lake Zoning and Subdivision Ordinances and found said Planned Unit Development to be consistent with the provisions of said ordinances; and WHEREAS, The Prior Lake City Council considered an application from Dominium for a Preliminary PUD Plan of Gateway Redevelopment on March 9, 2015,and adopts the following findings in support of Subsection 1106.200 of the City Code: (1) Provides a flexible approach to development which is in harmony with the purpose and intent of the City's Comprehensive Plan and Zoning Ordinance; Finding: Housing goals and objectives in the Comprehensive Plan support providing opportunities for a variety of affordable high-quality housing, and maintaining a choice of and encouraging development of quality residential environments. (2) More creative, efficient and effective use of land, open space and public facilities through mixing of land uses; Finding: A mix of more high-density housing with the surrounding commercial uses will expand the mix of land uses in the Gateway area. (3) Create a sense of place and provide more interaction among people; Finding: This additional high-density housing project will provide a strong residential focus in the Gateway area, allowing more opportunities for interaction between residents and businesses, including the core downtown area that is Y2 mile from this location. (4) Increase economic vitality and expand market opportunities; Finding: This project will add considerable short-term (1 year) construction jobs, and the estimated new 200+ residents will increase market opportunities for local businesses. (5) Support long-term economic stability by strengthening the tax base,job market and business opportunities; Finding: This project's total development cost is nearly $32 million dollars with an expected county estimated market value of $16.5 million; the current market value of the commercial property is $1.75 million. (6) Increase transportation options, such as walking, biking or bussing; Finding: By adding 200+ new residents in this area, new bus/van routes are likely, and these independent living residents will likely be walking to nearby parks and downtown. (7) Provide opportunities for life cycle housing to all ages; Finding: This housing is affordable to seniors (55+) with incomes at/below 60% of the area median ($34,860 for 1-person; $39,840 for 2-person); initial rent levels are$933/month for 1-bedroom, $1,120/month for 2-bedroom, and $1,293 for 3-bedroom units. (8) Provide more efficient and effective use of streets, utilities, and public facilities that support high quality land use development at a lesser cost; Finding: More high-quality housing units concentrated at a higher density in one location makes more efficient use of existing street, sewer and water infrastructure. (9) Enhanced incorporation of recreational, public and open space components in the development which may be made more useable and be more suitably located than would otherwise be provided under conventional development procedures. The PUD district also encourages the developer to convey property to the public, over and above required dedications, by allowing a portion of the density to be transferred to other parts of the site; Finding: On- site green space, including walking trails and patios, are provide on this site, thereby replacing a commercial site that was nearly 95% impervious with building and blacktop parking lot. (10) Preserves and enhances desirable site characteristics and open space, and protection of sensitive environmental features including, but not limited to, steep slopes, wetlands, and trees. Where applicable, the PUD should also encourage historic preservation, re-use and redevelopment of existing buildings; Finding: Redevelopment is occurring without preservation; however, the future long-term viability of this building for commercial use is uncertain based on recent history of vacancies and bank ownership. (11) High quality of design compatible with surrounding land uses, including both existing and planned; Finding: This site and building will be developed with all aspects of high quality, including building exteriors, landscaping, lighting, parking and green space. 2 NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. The Preliminary PUD Plan is approved to include the following project description: a. Unit Mix— 165 total, including 124 1-bedroom, 8 2-bedroom and 33 3-bedroom units, subject to final minor mix modifications. b. Common Areas—lobby, office, salon, library, social, fitness, club room, theater and cards. c. Height—4 stories (50' 6"). d. Parking— 170 total, including 121 underground and 49 surface. e. Setbacks—front=30 feet; rear=25 feet;west side=25 feet; east side= 15 feet; parking setback= 10 feet, subject to final detailed setbacks for all aspects of the building exterior components. f. Exterior— pitched/gable roof design; balconies; stone lower face; hardy board upper face; extensive windows. 3. The Preliminary PUD Plan for a senior rental housing project is approved subject to the following conditions: a. The developer shall submit an administrative subdivision application for a lot combination for a portion of Lot 1 and all of Lot 2, Gateway Center 1 st Addition, to be approved by the City Council on or before the City Council's approval of a Final PUD Plan. b. At the time of a Final PUD Plan submittal, the developer shall submit all necessary details as identified in Subsection 1106.708 of the City Code. c. The Final PUD Plan shall conform to the uses and structural elements approved as part of the Preliminary PUD Plan, or as may be modified to decrease housing units and/or building height. d. The Final PUD Plan shall include public sidewalks along Gateway Street and Jordan Avenue. e. The Final PUD Plan may be conditionally approved by the City Council upon the Metropolitan Council's written approval of an amendment to the City's 2030 Comprehensive Land Use Plan from C-CC Community Retail Shopping to R-HD Residential Urban High Density. PASSED AND ADOPTED THIS 9th DAY OF MARCH, 2015. VOTE Hedberg Keeney McGuire Morton Thompson Aye ❑ ❑ ❑ ❑ ❑ Nay ❑ ❑ ❑ ❑ ❑ Abstain ❑ ❑ ❑ ❑ ❑ Absent ❑ ❑ ❑ p ❑ Frank Boyles, City Manager 3 O� p�0 r V 4646 Dakota Street SE Prior Lake,MN 55372 CITY OF PRIOR LAKE ORDINANCE NO. 115-XX AN ORDINANCE AMENDING SECTION 1101.700 OF PRIOR LAKE CITY CODE AND THE OFFICIAL ZONING MAP FOR THE CITY OF PRIOR LAKE, AND ADOPTING BY REFERENCE CITY CODE PART 1 WHICH, AMONG OTHER THINGS, CONTAINS PENALTY PROVISIONS The City Council of the City of Prior Lake does hereby ordain: 1. The Prior Lake Official Zoning Map, referred to in Prior Lake City Code Section 1101.700, is hereby amended to designate the following legally described property as the Gateway Redevelopment Planned Unit Development(PUD). LEGAL DESCRIPTION: Lot 2, Block 1, Gateway Center 1St Addition, City of Prior Lake, Scott County, Minnesota. AND That part of Lot 1, Block 1, Gateway Center 1St Addition including the west 27 feet, City of Prior Lake, Scott County, Minnesota. 2. The Gateway Redevelopment Preliminary PUD Plan includes the following elements: a. The PUD is a housing development consisting of 165 independent senior housing rental units with amenities and underground parking, all within a 4-story building; the units are affordable for households allbelow 60%of the area median income. b. The PUD housing density of the development is approximately 65 units per acre. This ordinance shall become effective from and after its passage and publication. Passed by the City Council of the City of Prior Lake this 9th day of March, 2015. ATTEST: City Manager Mayor To be published in the Prior Lake American on the Saturday following official notice of the Metropolitan Council's approval of the corresponding Comprehensive Land Use Plan amendment to R-HD Residential Urban High Density. ^ Published in the Prior Lake American on the day of 2015. 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