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Home My WebLink About4D Alternative Schools ReportPRfO� U r� 5A{"{N§Q9 PLANNING COMMISSION AGENDA REPORT MEETING DATE: JANUARY 21, 2014 AGENDA #: 4D PREPARED BY: JEFF MATZKE, PLANNER PUBLIC HEARING: YES AGENDA ITEM: ZONING ORDINANCE AMENDMENT — SECTION 1102 USE DISTRICT REGULATIONS — ALTERNATIVE SCHOOLS IN COMMERCIAL USE DISTRICTS DISCUSSION: Introduction The purpose of this item is to hold a public hearing for a proposed amendment to the city's Zoning Ordinance to reclassify an Alternative School land use from an allowed Interim Use to an allowed Permitted Use by Conditional Use Permit. History The Prior Lake — Savage School District currently operates an Alternative School known as the Bridges Area Learning Center in the Northgate Center commercial area at 15875 Franklin Trail (see attached exhibit). The City issued an interim use permit in July of 2009 for the learning center and recently extended the original 5 year interim use permit for another 5 years to July of 2019. On November 25, 2013 the City Council directed City Staff to review the Alternative School Land Use regulations and prepare a report to the effects of converting the land use from allowed by Interim Use Permit to allowed by Conditional Use Permit in the C-2 (General Business) Commercial Zoning District. On January 21, 2014 the Planning Commission held a discussion on the possible text amendment change. At the meeting the Planning Commission asked for more information regarding the liquor license impact prior to making a recommendation to the City Council on the possible text amendment. City Staff has since received confirmation from the City Attorney that the liquor license Ordinance (Section 300) explains if a property seeking issuance, renewal, or transfer of a liquor license is within 300 feet of a school, the City Council would "have grounds to deny" the license request. This means the City Council could permit the license or deny the license based on their judgment of the particular situation. It does not mean the City Council would be required to deny the license request. Current Circumstances The current ordinance lists the Alternative School land use as permitted by Interim Use Permit. The following is the definition and conditions of approval for an Alternative School land use: NORTHGATE CENTER Bridges Area Learning Center f r r' i k. Alternative School 1 { F? i Feet t 0 75 150 300 450 600 Alternative School: A school that offers a curriculum which is equivalent to but is a substitute for the curriculum commonly found in more traditional public or private schools 1102.1104(l) Alternative School. Conditions: a. A student transportation and parking plan shall be submitted demonstrating that parking needs will be met for all tenant space. b. An adult over the age of 21 shall be on the premises during hours of operation in a supervisory capacity. c. A pedestrian plan shall be provided in order to maintain vehicular and pedestrian safety. d. Outdoor areas intended for group activities shall be located at least 25 feet from any lot in an "R" Use District and shall be buffered from such residential lot with a buffer yard, Type C as described in Subsection 1107.2005. According to the Zoning Ordinance, Interim Use Permits are issued to Alternative Schools under the same process as a Conditional Use Permit. An Interim Use is defined as follows: 1108.1001 Purpose and Intent. Certain uses, while generally not suitable in a particular Zoning District, may, under certain circumstances be acceptable for a prescribed period of time. An Interim Use is a temporary use of property until a particular date, until the occurrence of a particular event or until the zoning regulations no longer permit it. An Interim Use may never become a Use that is permitted, permitted with conditions or allowed by conditional use permit unless a Use District in the Zoning Ordinance is amended, following the procedure set out in Section 1108.500, by a 4/5ths vote of the City Council to add the Use. Conclusion The reclassification of an Alternative School from a temporary Interim Use to a permanent Permitted Use by Conditional Use Permit does have some implications. The two main implications identified by City Staff in the following section include taxable property status and liquor license issuance for nearby properties. The Planning Commission should continue discussion of the possible text amendment and offer a recommendation for the City Council to consider as part of their review of the text amendment at an upcoming meeting. ISSUES: Inclusion of an Alternative School land use as a use allowed by Conditional Use Permit in the C-2 (General Business) Commercial District would allow such a use on a permanent basis rather than a temporary basis. When considering recommending this change, the Planning Commission may want to also understand two possible implications of a school use in a commercial area. Tax Status: In the past, City staff has contacted the Scott County Assessor to verify the tax implications of a school utilizing commercial space. The County Assessor indicated that in most cases a school is tax exempt. However, in cases where a school leases a commercial space, there are two determining factors: 1) Does the school pay market rate for leasing the space, or are they given a discount because they are a school? 2) What is the structure of the lease? According to the County Assessor, a school that leases space is often given a discount and their lease agreement is specialized to their use as a school, which in this case would justify tax exempt status. However, if the property owner rents space to the school with no differentiation from the use of the school from that of other commercial user, the property owner would be taxed at the same rate as any other commercial entity leasing the space. In either case, it's noteworthy that a lease agreement and the status of property ownership could change and thus change the tax implications. Liquor License: According to Section 301.600 of the City Ordinance, the City Council would have "grounds to deny" issuance, renewal, or transfer of a liquor license if the premises to be licensed is "located within 300 feet of any church or school." This does not mean the City Council would be required to deny the a license request in this case, however, the City Attorney cautions that the City Council may not wish to set a precedent of disregarding the condition in multiple cases. Therefore, the permanent placement of an Alternative School (or any school by definition) within a commercial zoning district could possible restrict the surrounding block of properties from utilizing a liquor license (such as a restaurant or liquor store) at the City Council's discretion. ALTERNATIVES: 1. Motion and second to recommend an ordinance amendment to allow an Alternative School land use as permitted with approval of a Conditional Use Permit within the C-2 Business District. 2. Motion and second to recommend the Alternative School land use remain as permitted with approval of an Interim Use Permit within the C-2 Business District 3. Motion and second to recommend a separate action as directed by the Planning Commission. EXHIBITS: 1. 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