1k. Preliminary & Final Plat, Crossroads Plaza 1K
1 C ITY O F " P.C. DATE: Dec. 6, 1989
\t4
C.C. DATE: Dec. 18 , 1989
CHANHA- --N
lCASE NO: 89-19 SUB
IIPrepared by: Al-Jaff/v
I STAFF REPORT
. ,
liPROPOSAL: Preliminary Plat to Subdivide 16 .77 Acres into
Two Lots and Four Outlots
II
i
VLOCATION: North of Highway 5, west of Great Plains Boulevard
and south of Chicago, Milwaukee, St. my $a liroad
J
fnaorsed it
APPLICANT: City of Chanhassen itiodifie�
I 690 Coulter Drive Rejaei ���
Chanhassen, MN 55317 �e_12 z/37
Date Submitted t, C -:-%ssiori
Dete Submitted to Coped
/ —/t--Y J
PRESENT ZONING: BG, General Business Distil-cL-and DH,
IHighway and Business Services District
ACREAGE: 16. 7 acres, 730,327 square feet
IADJACENT ZONING
AND LAND USE: N - CBD; Central Business District and BG,
IGeneral Business District
S - Highway 5
IIE - BH; Highway and Business Services District
QW - Highway 5
r 0 WATER AND SEWER: Available to the site.
I PHYSICAL CHARAC. : The site has been extensively altered by the
recent completion of Market Blvd. and 79th
W. Street. With exception of two retention
ponds, the larger of which is located west
I of Market Blvd. , the site is flat and
devoid of tree cover.
I2000 LAND USE PLAN: General Business and Highway Business
II
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I
Crossroads Plaza Subdivision
December 6 , 1989 1
Page 2
BACKGROUND '
In October, 1989, plans were submitted for the Crossroads
National Bank and development started on the site. Plans were
approved on October 23, 1989. The subdivision is being requested
primarily so that the City can convey the bank site to the
developers, create a second lot for future development and create
necessary easements and roads.
On December 6, 1989, the Planning Commission reviewed and recom-
mended
approval of the subdivision. Just prior to the meeting
with the Planning Commission, staff added Condition #4 which
states that the applicant agrees to support a rezoning request of
the westerly portion of the site from BG, General Business to BH,
Highway and Business District. Staff anticipates the City
requesting the rezoning to eliminate the current situation where
the bank property is split between the BG and BH districts.
Rezoning it to BH will provide continuity with parcels located to
the east.
ANALYSIS ,
The City, which currently owns the site, is proposing to sub-
divide 16 .77 acres into two lots and four outlots as follows:
Lot 1, Block 1 contains 2 . 47 acres and will be the site of the
future Crossroads National Bank. '
Lot 2, Block 1 contains 3. 02 acres and will be reserved for
future development. Lot 2 is labeled as Outlot A on the current
survey. Staff is recommending that the final plat be revised to
plat it as Lot 2 , Block 1 since it will eventually be sold for
future development.
Outlot B, 1. 74 acres, contains a drainage pond and may ultimately
contain streetscape improvements as it is an entrance into the
CBD.
Outlot C, 0. 33 acres, and Outlot D, 0. 55 acres have been
established for the future expansion of Highway 5 for ultimate
right-of-way negotiations with MnDOT.
Outlot E, 6 .14 acres, contains a drainage pond and will be pre-
served as such. ,
STREETS
In the attached memo, the Senior Engineering Technician addresses '
the utilization of the existing West 79th Street for access. He
is requesting that Lot 2 share a common access driveway with Lot
1 to eliminate traffic congestion on West 79th Street. Provision '
II
Crossroads Plaza Subdivision
II December 6, 1989
Page 3
I of a shared curb cut between Lots 1 and 2 was a condition of
approval for the bank. A 20-foot wide cross access easement
should be provided over each side of the south 50 feet of the
common lot line between Lots 1 and 2 ( see attached copy of bank
Istaff report and City Council minutes) .
Market Boulevard is located on the extreme westerly edge of
I Outlot E connecting West 78th Street with Highway 5. Acceptable
right-of-way for the final design of both streets has been pro-
vided.
IUTILITY EASEMENTS
In the attached memo, the Senior Engineering Technician addresses
I the utility easements . He is requesting the typical utility and
drainage easements over each lot; five feet on side lot lines
and 10 feet over the front and rear lot lines. A 20-foot wide
I utility and drainage easement on the southern border of Lot 2 ,
Block 1 is required as storm sewer was extended through Lot 2,
Block 1 into Lot 1 , BLock 1. An additional utility easement for
existing gas lines is requested across the northerly lot lines of
IIOutlot E and Lots 1 and 2 , Block 1.
PARK DEDICATION
IA park dedication fee for the bank site has been negotiated under
the purchase agreement from the City' s Housing and Redevelopment
I Authority. The City reserves the right to open park dedication
fees on Lot 2 at such time as it is proposed for development.
PLANNING COMMISSION UPDATE
IIThe Planning Commission recommended approval of Subdivision
Request #89-19 as shown on the preliminary plat dated October 27,
I1989 and subject to the following conditions:
1 . The following easements shall be provided:
II - A 20-foot wide utility and drainage easement will be required
on Lot 2, Block 1.
I - The final plat should include the typical utility and
drainage easements over each lot; 5 feet on side lot lines
and 10 feet over the front and rear lot lines.
I - An additional utility easement should be shown on the plat
for the existing gas line across the northerly lot lines of
Outlot E and Lots 1 and 2, Block 1.
-
Cross access easement over the southern 50 feet of the common
lot line between Lots 1 and 2. The easement shall be 20-feet
Iwide on each lot.
II
Crossroads Plaza Subdivision
December 6 , 1989
Page 4
2 . The final plat should show Outlot A as Lot 2 , Block 1. '
3 . The Lot 1 park dedication fee should be paid as outlined in
the HRA' s purchase agreement at the time of sale. The City
reserves the right to acquire park dedication fees on Lot 2
at such time as it is proposed for development.
4 . The applicant and purchaser of Lot 1, Block 1 agrees to sup-
port a rezoning request of the westerly portion of the site
from BG, General Business and BH, Highway and Business
District.
CITY COUNCIL RECOMMENDATION
Staff recommends the City Council adopt the following motion:
"The City Council approves Subdivision Request #89-19 as shown on
the preliminary plat dated October 27, 1989 and subject to the
following conditions:
1. The following easements shall be provided: '
- A 20-foot wide utility and drainage easement will be required
on Lot 2, Block 1 . ,
- The final plat should include the typical utility and
drainage easements over each lot; 5 feet on side lot lines
and 10 feet over the front and rear lot lines.
- An additional utility easement should be shown on the plat
for the existing gas line across the northerly lot lines of
Outlot E and Lots 1 and 2, Block 1.
- Cross access easement over the southern 50 feet of the common
lot line between Lots 1 and 2. The easement shall be 20-feet
wide on each lot.
2. The final plat should show Outlot A as Lot 2 , Block 1. '
3 . The Lot 1 park dedication fee should be paid as outlined in
the HRA' s purchase agreement at the time of sale. The City
reserves the right to acquire park dedication fees on Lot 2
at such time as it is proposed for development.
4 . The applicant and purchaser of Lot 1, Block 1, agrees to sup- '
port a rezoning request of the westerly portion of the site
from BG, General Business and BH, Highway and Business
District."
I
Crossroads Plaza Subdivision
December 6 , 1989
Page 5
' ATTACHMENTS
1 . Senior Engineering Technician report dated November 29 , 1989 .
' 2. Preliminary plat of Crossroads Plaza Addition dated October
27, 1989.
3 . Existing features map.
4 . Staff report and minutes for the Crossroads Bank dated
' October 23, 1989.
5. Planning Commission minutes date December 6 , 1989 .
1
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C I TY of
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7'A 690 COULTER DRIVE• BOX CHANHASSEN, '
••. `�, P.O.O OX 147• C HASSEN, MINNESOTA 55317
4 (612) 937-1900 • FAX(612) 937-5739 I
MEMORANDUM
TO: Sharmin Al-Jaff, Planning Intern 1
FROM: Dave Hempel, Sr. Engineering Technician "f I
DATE: November 29, 1989
SUBJ: Preliminary Plat Review for Crossroads Plaza
I
File No. 89-18 Land Use Review
Upon review of the preliminary plat of Crossroads Plaza dated I
October 27 , 1989 , prepared by BRW, Inc. , I find the overall plan
is generally acceptable with the following conditions: I
1 . The final plat should include the typical utility and
drainage easements over each lot, i . . 5 feet on side lot
lines and 10 feet over the front and' rear lot lines .
I
2. With recent development on Lot 1, Block 1, storm sewer was
extended through Lot 2, Block 1. Therefore, a 20-foot wide
I
utility and drainage easement will be required on Lot 2,
Block 1 (see attached) .
3. Across the northerly lot lines of Outlot E and Lots 1 and 2,
II
Block 1, an additional utility easement should be shown on
the plat for the existing gas line.
• , " - ' 1
Attachment: Easement map. •
- c: Gary Warren, City Engineer i^ I
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C iTY O F O .C.' DATE: Oct. 4, 199-�
` ) - hANHASCrlill C.C. DATE: Oct. 23, 1989
I Y CASE NO: .89-6 Site Plan
an
IPrepared by: Olsen/v
II STAFF REPORT
1
PROPOSAL: Site Plan Review for 14,000 Sq. Ft. Bank and Office
I Building - Crossroads National Bank
I-
I i LOCATION: Northeast Corner of Market Boulevard and West 79th
Street - Parts of Lots 5-7, Block 1, Frontier
V Development Park
IAPPLICANT: TCNB Incorporated Tom Mork
a 10201 Wayzata Blvd. Jim Ruckle
Minnetonka, MN 55343 Shea Architects
1 Q Butler Square, Suite 300
100 North 6th Street
Minneapolis, MN 55403
I
II PRESENT ZONING:
BH, Highway Business district and
BG, General Business District
IIACREAGE: 2.4 acres
IDENSITY:
ADJACENT ZONING
I 44c AND LAND USE: N- BH; railroad tracks & Chan Bowl
S- BH; vacant
IIGIF , - E- BH; vacant
W- BG; vacant - ponding area
Iw
WATER AND SEWER: Available to the site.
PHYSICAL CHARAC. : The site is fairly level unimproved
IC')
property.
•
I2000 LAND USE PLAN: Commercial
II
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Crossroads National Bank " ��
October 4, 1989
Page 2 p-3 .-;�
i
APPLICABLE REGULATIONS . s
Financial institutions are a permitted use in the BH and -BG)_-r.1 _ ,0:, "
Districts. '''—o '
I Section 20-715 and 20-755 requires in the BH District a minimum_;:, _-)14t,
lot area of 20,000 square feet, lot frontage of 100 feet, lot ' `,'-,..-.4'=w :,'<.
q g F ��".
depth of 150 feet and a maximum lot coverage 65% (70% in BG • ..-i3. �
District) .
The setbacks for the BH District are 25 feet front, 20 feet for _
rear yard and 10 feet for the side yard setbacks. The setback
I . for BG District is 25 feet front and rear and 10 feet on the side
yards. The maximum height for a structure is two stories for the
principle structure and one story for the accessory structure in
IBH and 3 stories (40' ) in BG District.
There is no minimum setback for off-street parking areas when it
abuts a railroad right-of-way except as provided in Sections
20-1191 and 20-1192 pertaining to landscaping requirements.
Section 20-1191 requires a 10 foot strip of land between abutting
I right-of-way and vehicular use areas including one tree per 40
feet and a hedge wall or berm of at least two feet.
I Section 20-1192 requires interior property lines to be landscaped
with one tree per 40 feet.
I Section 20-1211 requires interior landscaping for vehicular use
areas.
Section 20-1125 requires for office three parking spaces for each
I 1,000 square feet of gross floor area and one parking space every
250 square feet of floor space for a financial institute.
IREFERRAL AGENCIES
Building Inspector Attachment #1
IFire Inspector Attachment 12
City Engineer Attachment 13
IANALYSIS
I The applicant is proposing to develop a bank and office building
with a total square footage of 14,000 square feet (including a
future 4,000 sq. ft. addition) . The building is located at the
northeast corner of Market Boulevard and West 79th Street. The
Iproposed site is part of Lots 5-7, Block 1, Frontier Development
•
I
I
Crossroads National Bank '
October 4, 1989
Page 3
Park which is owned by the Chanhassen Housing and Redevelopment I
Authority. The applicant is currently negotiating with the HRA
i to purchase the property. As part of the agreement, the City is
platting the subject property and adjacent property also under
I
the ownership of the HRA. A condition of site plan approval will
be for the preliminary and final plat to be approved and recorded
with Carver County.
I
The site is in both the BG and BH District. This is due to the
fact that the old district boundaries do not conform to the pre-
I
sent Market Boulevard alignment. The site plan meets conditions
of either district but a rezoning of the property should occur
during the plat procedure to provide consistency. The City will
initiate the request.
I
Site Plan
Circulation 1
The bank is oriented towards West 79th Street with a drive-thru
I
area located adjacent to Market Boulevard. The design of the
site plan allows easy flow for the drive-thru tellers and allows
separate access for parking and entering the bank and office
areas.
I
Market Boulevard, once connected to Hwy. 5, will become a major
roadway entering downtown Chanhassen. The Market Boulevard curb I
cut will be an entrance only. A left turn lane will be provided
into the site from southbound Market Boulevard. Due to the high
traffic levels that are expected, staff is recommending that a
Iright turn deceleration lane should be provided to accommodate
traffic entering the site from Market Boulevard. In addition, a
bituminous sidewalk is located on the east side of Market
Boulevard from West 78th Street to "Bowling Alley Lane" and con-
tinues I
east on "Bowling Alley Lane" . Staff is recommending that
a 6' concrete sidewalk be located south from "Bowling Alley Lane"
to West 79th Street on the east side of Market Boulevard.
I
To accommodate the right turn lane on Market Boulevard and the 6
foot concrete side sidewalk, the 44' right-of-way will have to be
expanded. At the most, an additional 20 feet of right-of-way
would be required. Staff is recommending that the applicant work
with staff to design the deceleration lane and sidewalk to deter-
mine the exact amount of additional right-of-way which is
required. Once the amount of additional right-of-way is deter-
mined, the site plan will have to be revised to reflect the new
westerly lot line (to maintain proper setbacks) . This revision II can be easily accommodated by shifting the entire site plan to
the east.
.The most easterly curb cut on West 79th Street is approximately
75 feet from the West 79th Street-Market Boulevard intersection. II
II
II
Crossroads National Bank ° ` 1
•
fA
October 4, 1989
Page 4
Staff would prefer the exit be further separated from thenter
section (100' - 150' ) . Shifting the site plan to the eastto
accommodate the additional right-of-way on Market Boulevard wi
provide additional separation between the exit and the intersecT
tion (approximately 100' ) . r;
The east access on West 79th Street is located on the east
line and the adjacent lot. In the future the easterly access on
West 79th Street will also act as an access to the adjacent lot
when it is developed. Since the access is crossing property , -
lines, cross easements must be provided.
Parking, Landscaping and Elevation
Using the calculation for parking for financial institutions at
one parking space per 250 square feet of building area, a total
of 56 parking spaces would be required. The applicant is pro-
viding 67 parking spaces which includes 2 handicapped parking
spaces. The 67 spaces exceeds the requirements for financial
institutions and offices. The area for cars using the drive-thru
provides adequate stacking distance.
Page L-1 of the plans provides proposed landscaping for the site.
The applicant is providing the required landscaping except for
hedges required on the berm located between the south parking
area and West 769th Street. The landscaping plan shall be
revised to provide the necessary landscaping on the berm between
the parking area and West 79th Street. Staff is not requiring
internal landscaping along the most easterly lot line since the
parking area and access will be expanded into the.adjoining lot.
The building is one story with a tower at the southwest corner.
The building is brick with bronze metal roof with HVAC enclosed
internally. There are 6 covered drive-thru tellers connecting
the building with a tower made of similar materials which
features a time and date sign.
Signage
The applicant is proposing one pylon sign, several-•Oirectional
signs and a time and temperature sign above the drive-thru. The
pylon sign is located at the entrance from Market Boulevard and
is 45 square feet in size. The BH and BG District permits one
pylon sign/lot not to exceed 64 square feet and the height of the
pylon sign is limited to 20 feet. A detail on the pylon sign
providing the height of the sign shall be provided prior to City
Council approval. The time and temperature sign is located on
the north and west side of the tower and is 42 square feet (3' x
14' ) .
Sign permits are required for the pylon and directional signs.
The time and temperature sign are permitted without a permit.
Any additional signage will require a permit.
I
A �'�s: F I � .• _ t
ws
Crossroads National Bank
October 4, 1989 '
Page 5
Grading, Drainage & Utilities
Please refer to the Senior Engineering Technician's memorandum.
Temporary Facility
Page 1B of the site plan illustrates a modular banking facility
and a phasing plan for the construction of a permanent facility.
The applicant is proposing to utilize the temporary facility in
order to open up the bank prior to the permanent building being
completed. The temporary building is a 24' x 74' modular
constructed building. The temporary building is a fully self
contained building with all necessary eqiupment including two
drive up lanes. Crossroads National Bank will be prepared to
open their bank for business in the near future and the permanent
building will not be completed until the end of 1990 or early
1991. '
The temporary bank facility will be located within the easterly
parking lot. All of the parking areas used for the temporary
banking facility will be paved with the curb and gutter and
landscaped as proposed on the overall site plan. The building
will have footings, will be hooked up to sewer and water and will
be handicapped accessible. The temporary facility will utilize
the easterly full access on West 79th Street. A condition of
site plan approval will be that the temporary facility will have
to be removed within one week of the permanent facility receiving
a certificate of occupancy.
RECOMMENDATION
Planning staff recommends the Planning Commission adopt the
following motion:
The Planning Commission recommends approval of Site Plan Review 1
#89-6 for Crossroads National Bank as shown on the plan dated
September 22, 1989 and subject to the following conditions:
1. The property shall be platted and recorded with-Carver
County.
2. The City shall process a rezoning of the property as part of
the platting procedure.
3. The site plan shall be revised to include a right turn dece- 1
leration lane on Market Boulevard and a 6 foot wide concrete
sidewalk on the east side of Market Boulevard. The site plan
shall be revised to reflect additional right-of-way necessary
for the deceleration lane and sidewalk and to maintain
required setbacks.
I
.^k y Al : , K
Crossroads National Bank ,‘ ,---,.., , .4,-'
II October 4, 1989
Page 6 ,tee._}. F,
,
4. The applicant shall provide cross easements for the joint
access on West 79th Street. n
I x , .
5. The applicant shall provide revised landscaping plan pro--p ,r
viding necessary landscaping on the berm between the parking `c : r _ ,-
area and West 79th Street. ? ' Y}
� ,,
' 6. The applicant shall provide a detail on the pylon sign pro-.: yrw
viding the height of the sign prior to City Council approval. ;t,,
I 7. The temporary facility will have to be removed within one
week of the permanent bank facility receiving a certificate
of occupancy.
I8. The applicant shall comply with any and all Watershed
District requirements.
I 9. The city will monitor the site for erosion control problems
and if deemed necessary additional erosion control may be
required in the future.
I 10. Exact storm sewer connections and design shall be verified in
the field and approved by the City's Engineering Department
Iprior to construction.
11. The exit on West 79th Street shall be moved a minimum of 100
feet from the West 79th Street/Market Boulevard intersection.
II12. The applicant shall illustrate how the easter4y parking lot
will be modified in the future when the adjacent parcel is
Ideveloped."
PLANNING COMMISSION ACTION
IThe Planning Commission recommended approval of the site plan
with staff' s conditions with the following changes:
II 6. The temporary facility will have to be removed within one
week of the permanent bank facility receiving a-.certificate
of occupancy, notwithstanding the foregoing, such temporary
facility shall be removed within 9 months of the issuance of
the building permit for the permanent bank facility.
11. Future addition designated on the plans are not part of the
site plan approval.
In addition, the Planning Commission wanted staff to provide the
City Council with the details for the lighting of the site. The
applicant has provided the details showing the type of light fix-
tures used on the site and where they are located.
F! :: Tona1Banki E
The applicant has provided a revised site plan which provides the_
I
additional right-of-way required for the right turn lane on
Market Boulevard and sidewalk. The site plan shifts the entire
project to the east and provides a connection between the drive-
thru and bank parking area. The amended plan was submitted on I
October 18, 1989, and staff has not had time to completely review
the site plan. Staff is providing the Council with a copy of the
amended site plan for their review. Staff will be performing a I
complete review of the site plan and believes the changes are
minimal and the site plan still meets the requirements of the
zoning ordinance. Unless directed otherwise, staff will admi-
nistratively approve the amended site plan. 1
4
"1~
CITY COUNCIL RECOMMENDATION
#89-6 for Crossroads National Bank as shown on the plan dated 1
September 22, 1989 and subject to the following conditions:
1. The property shall be platted and recorded with Carver '
I
County.
2. The City shall process a rezoning of the property as part of II the platting procedure.
3. The site plan shall be revised to include a right turn dece-
leration lane on Market Boulevard and a 6 foot wide concrete
sidewalk on the east side of Market Boulevard. The site plan
shall be revised to reflect additional right-of-way necessary II for the deceleration lane and sidewalk and to• maintain
required setbacks.
4. The applicant shall provide cross easements for the joint
II
access on West 79th Street.
5. The applicant shall provide revised landscaping plan pro- II viding necessary landscaping on the berm between the parking
area and West 79th Street.
6. The temporary facility will have to be removed within one
II
week of the permanent bank facility receiving a certificate
of occupancy, notwithstanding the foregoing, such temporary
facility shall be removed within 9 months of the issuance of I
the building permit for the permanent bank facility.
7. The applicant shall comply with any and all Watershed I District requirements.
8. The city will monitor the site for erosion control problems
and if deemed necessary additional erosion control may be
required in the future. Ir
11
. , - ` -
1 Ps
Crossroads National Bank
October 4, 1989
Page 8
y � F
9. his� sat f '
Exact storm sewer connections and design shall be verifiedc }
the field and approved by the City's Engineering p
prior to construction. g De artmentf °� ,,q ;_
10. The exit on West 79th Street shall be moved a minimum of 100
feet from the West 79th Street/Market Boulevard intersection.
11. Future addition designated on the plans are not part of the
site plan approval.
12. Lighting to be consistent with Market/West 79th Street
lighting.
ATTACHMENTS
1. Memo from Ron Julkowski dated September 27, 1989.
2. Memo from Mark Littfin dated September 27, 1989.
3. Memo from Dave Hempel dated September 27, 1989.
4. Letter from Crossroads National Bank dated September 12, 1989.
5. Letter from Crossroads National Bank dated September 11, 1989.
6. Memo from Jo Ann Olsen dated September 20, 1989.
7. Planning Commission minutes dated October 4, 1989.
8. Site plan dated September 22, 1989.
9. Site plan dated October 18, 1989.
i . •
1
I
; t;F
�r..:pv-CbimCil Meeting - Oc'- • 'r 23, 1989 i :z
whole thing and you were suggesting that we go ahead with that company to do the
whole thing. That was my misunderstanding.
Gary Warren: No, it would just be for the feasibility surly and then after that '
we would have a handle on the plans and specifications which would take a
separate authorization.
M 'Councilman Workman: I'd move approval.
Mayor Oriel: I had one other question on that. Can that be done in that one
day rather than incorporating another $800.00 charge?
Gary Warren: It's a ratter of hydraulics. The Murray Hill tower being in a
high pressure zone doesn't always drain out in one day. It will depend on the '
system pressures at the time. We'll do it as fast as we can but it may take 2 .
days at the raximnm.
' '
Councilman Workman moved, Councilwoman Dimler seconded to authorize inspection ,.
study for rehabilitation of Murray Hill water tower. All voted in favor and the
motion carried.
cn--(0 3. SITE PLAN REVIEW FOR A BANK AND OFFICE BUILDING, NORTHEAST CORNER OF MARKET
. •r,BOULEVARD AND WEST 79Th STREET, CROSSROADS NATIONAL BANK.
Councilman Boyt: I will start this by apologizing to the group that brought it
in. They asked me to call if I had questions and I just got so busy I didn't
have time to get back to theme. Reading through, this is the Crossroads National
Bank. My problems here is understanding the nature of the temporary building.
I think that it's one thing to have a temporary building while they're building
the permanent building but as I read through the Minutes of the Planning
Ckr'vtission, the impression I got was a temporary building was going in and then
they were going to begin pursuing the permanent structure. I'm uncomfortable
with that arrangement. Maybe they can clear some things up about it. Are you
open to hearing from them?
Mayor Chndel: Sire. 1
Tom Pbrk: Good evening Mr. Bayt. I'm Tan Mork and we visited over the phone
briefly. In actual fact, as I understand it, we are here tonight to gain a
building permit approval for both our permanent building and our .mgdular •
building inasmuch as we are well underway in terms of getting our:bank
organized. We have received charter approval from the office of the canptroller
of currency. We are currently awaiting approval of our holding canpany from the
Peleral Reserve Bank. Cur strategy in beginning in a modular building was to
essentially give ourselves sane time to establish ourselves as a business
entity. lb establish systems. To get our staff up and running. Tb get a
marketing .presence in the community and it is our intent to begin construction
on the permanent building just as soon as we possibly can. hopefully in 1990 but
in reviewing the process and in getting to this point, we spent a lot of time
talking to a lot of bankers, both in this metropolitan area and even as far
south as St. Louis where there has been a lot of denoteable bank charter
activity in the past 24 months approximately. Tb make a determination for
4
P ;;a rte ' .` r.:"'
I ' . City Council Meetinr, ±ober 23, 1989 . °'
IIourselves that such an undertaking is not marketing suicideitto open , - a modular building and we have been assured and reassured by 'everybody..
talked to that it is a smart strategy. It gives you a chance toestablish -.t
presence and that is one of the principle reasons why we would like',to = t Al)
a modular building. It is not our intent and in actual fact we run the=11141., 4
forfeiture of the land through our purchase agreement with the NRA if we. 3o, .t.,...-
II begin construction and complete construction of the building within I `believ
2 year time frame although we'd certainly hope to initiate construction'prior" to5 ,-;=-',,
that. . r yam'' v.
Councilman Boyt: So you're buying the land from the NRA? `"` : :�"'
Tom Mork: Correct.
ICouncilman Boyt: And you're paying than about how much? '
IITon Mork: $4.50 a square foot.
Councilman Boyt: Okay. And that's up front money?
ITom Mork: Up front money meaning? That's with all the improvements in.
Councilman Boyt: As soon as you sign the deal with the NRA you're giving them
II $4.00 and something a foot?
Tan Mork: We have already negotiated a purchase agreement that has been signed.
It was actually signed back in May and under the terms of the purchase agreement
1 there's a one year window to effect closing of the property.
Councilman Boyt: Well you're investing a considerably amount of money in this
IItemporary structure. I think it was something like $200,000.00?
Tan Fork: That's correct. That's what our initial estimate are.
1 Councilman Boyt: That includes I imagine the asphalt and that sort of thing?
Tam Fork: Correct. All of the grading. The asphalt. Sewer and water
Iinstallation. Lighting and so on.
Councilman Boyt: See, what I see you doing. What makes me uncomfortable is I
II sort of see this as you just described it. As a test marketing situation.
When I think of temporary bank buildings, they're usually associated with
existing banks that have an equity situation in which there's no question the
building's going in. When I see discussions about potentially 2 years from now
t and understanding that it's conceiveable that 2 years from now you could just
start construction or 2 years from now you could cane back in and negotiate with
the NRA to get an extension, I think it'd be much more typical if your modular
II building went in at the point at which you were beginning construction on your
permanent building. I don't know. Does anyone else on the Council have that
concern?
IITan Fbrk: I guess I would like to add that in terms of how it has been done in `
the past, I can point to a number of examples in the metro area in the last 10
.years that have actually spent up to the first 18 months of their existence in a
II
5
r
•%t Council Meeting - Oc*-'1er 23, 1989 _ t
modular building and I think, I want to be careful that we differentiate between
talking about test marketing and establishing a marketing presence. In actual
fact we have gone through a nu' er of microscopes to get this far, not the least
of which has been approval of an overall marketing plan by both the Comptroller
of Currency currently being scrutinized by the Federal Reserve Bank and also
more importantly to us, the investing public to which we are selling stock in
our bank. So I want to make certain that it's understood that we are not
embarking on a test marketing case. We just hope to establish a marketing
presence and turn our attention to issues which we feel at this time are
incredibly important such as establishing our operating systems. Developing
presence in the market place. Establishing a loan portfolio. Developing a
deposit base so that we have a stable enterprise. We will open the bank with no
less than 2.5 million dollars in capital so I don't believe we can be classified
as an organization that doesn't have the capital as some other banks that have
used a modular building as an expansion vehicle for example so I want to make
certain that it's understood that we are not an undercapitalized bank by any
stretch of the imagination. I believe the other bank in Chanhassen has
approximately the same level of capital after 70 years in existence so we're
opening up with the same level of equity capital or approximately the same as
the existing bank in Chanhassen.
Councilman Boyt: Are you in partnership with another bank? ,
Rom Mork: No we're not. It's an independent group of organizers. There's no
legal or ownership affiliation with any existing bank holding company.
Councilman Boyt: So now you're starting?
Tam Mork: That's correct. ,
Councilman Boyt: With your modular building and 2.5 million in capital? '
Tom Mork: That's correct.
Councilman Workman: Tan if I could maybe add to some of Bill's comments and 1
maybe what he's getting at a little bit. The HRA agreement is basically, you
term it basically a window or window of opportunity. Basically you're not going
to be closing on this property until the permanent facility is ready to go. ,
Rom Mork: No, that's not correct. We will close on the property prior to next
May. We bill be closing on the property prior to construction of the permanent
building.
•
Councilman Workman: Can you maybe explain to Obumcil the amendment that you're
proposing? '
San Mork: Certainly. tinder the existing purchase agreement we have, well let
PO back up a little bit. Wb would like to install the physical improvements to
the site for a modular building at a minivan no later than this fall inasmuch as
we feel that as a result of our capitalization efforts, our hiring efforts, our
development of the marketing plan, we should be open for business sometime in
early 1990. Frankly we hoped we would be ready for business by the end of 1989
but as I found out from talking to other bankers that have done the same thing
that I'm doing, there seems to be no end to same of the delays that you
6
•
. • City Council Meetinr ::tober 23, 1989 ^� ;� ` '=�►
1W
encounter. However, to this point we have been unable to close on the property
for any number of reasons and what we have requested is an amendment to the
purchase agreement that would essentially allow us access to the site,
completely at our risk, to enable us to go on and make whatever physical
improvwients we need to make in order to accommodate our modular building.
Principally that would involve some grading according to an approved grading
plan. The installation of utilities to the modular bank site. The installation
of lighting in the parking lot. Paving the parking lot and the construction of
a foundation for the modular building and ultimately the installation of the
modular building when it's delivered, hopefully as of now in the middle of
January or early January. Our sense is that if we're not able to complete the
improvements, particularly the paving, within approximately the next 30 days or
at least no later than the end of November, then we will be forced to open the
bank sometime after the frost is out in 1990. Keep in mind that we have been
undertaking our capitalization efforts now for approximately 60 days. We have a
number of people who have paid in considerably sums. I think the paper quoted
about a million and a half dollars and that's what we have paid in so far. That
potential delay presents same significant difficulties as far as we're concerned
in dealing with our potential investor base so that's the reason for the
amendment is to accommodate those site improvements.
Mayor Chmiel: Any other questions Tom?
Councilman Workman: No, I don't.
Councilman Hoyt: How would this be different than saying to sane other business
in town you can open up a Quonset hut and run your business out of it until
you've got everything in place to build the permanent structure that we've
approved? Is this somehow different than that?
Tom Mork: Well I guess I came at it from a biased viewpoint but I believe it
is. I believe for one thing the opportunity to have a new business in town with
the level of capital that we intend to bring, that we will king, is in itself
sanewhat unique. I furthermore believe that the addition of a commercial bank
to this marketplace is an enhancement to the consumers in this area. I note
with interest that already prior to our even opening the doors, the other bank
in Chanhassen has expanded it's hours from 3:00 lobby hours to 4:30 and
introduced full service Saturday morning banking. We expect that the addition
of ourselves in the marketplace will just do nothing more but further enhance
the banking climate for consumers in the Chanhassen area. PUrthermore, this is
not a Quonset hut. This is a building that is built by the Sun Corporation
which for the last 18 years has done nothing but construct permanent modular
banking facilities. Currently for example Norwest Corporation has installed a
building for one of their branch facilities on a permanent basis up in Anoka.
idhile the renderings that you ray have seen I don't think do justice to the
building, when we're talking about total cost of improvements of an excess of
$200,000.00, I don't think that that represents an insignificant level of
investment on our part to satisfy our needs on an interim basis.
Councilman Hoyt: Everything's relative and I didn't mean to imply that your
building was going to be a Quonset hut. You're talking about building a
permanent structure that's around 2 million dollars so a considerably greater
investment than what you're going to have in the temporary sturcture, which I
•guess is pretty natural. I think the Council, hopefully the other people on the
'S„tee: 7
J: .
.City Council Meeting - Oc er 23, 1989 .4 1
•
Council are going to be convinced that we're not sitting in a situation in which '
this group of investors is trying out Chanhassen to see if a bank will work
because we're now, shortly later in this meeting we're going to be looking at a
shopping center which is talking about a significantly greater investment than
the bank is and I guess without having then here, I'm just curious as to how
they feel about having a temporary bank structure just down the block and across -
the street. I don't now. I'm rambling so I guess I'm done. '
Mayor Chniel: There were some concerns I had too Bill about that modular
building. My main concern was whether or not it was in campliance with the
State of Minnesota requirements for a temporary structure and whether it did
have the state of approval by the State and it does so that made me feel a
little more comfortable with it. I also feel that sane of the concerns that
Bill has had has been sane of my concerns. One basically is to the construction
start and they're saying it's being just a little bit of an open period of time,
as we discussed the situation. I feel that the bank, with all intent, plans on
- starting construction I Would just as soon see that construction start as early
as possible. I'm sure you'd welcome that as well.
Tan Mork: Absolutely. I think all of us involved in the bank are very
reasonable people and certainly recognize the impact of =petition. It would
not be to our favor when our principle ccripetition in the community is the
resident of approximately a 2 million dollar facility, for us to remain in this
modular facility for any longer than we absolutely need to until we have our
permanent home built for us. I guess if I could just camient on the impact of
the neighborhood and sane of the concerns that Mr. Boyt, you voiced. I think
one of the things that has to be considered is that it would be incredibly
difficult for a supermarket to operate out of a modular building just because
their spacial needs are considerably greater. Stk can as a result of a growing
and initially a zero custaner base and a growing customer base, begin in a
modular building because we don't have those kinds of space needs. But
hopefully our growth will be a level that all of us expect it to and we'll be
forced to start construction as soon as the frost is out. I guess if I can give
you my camiitment that it is not in our intent to be in this building any longer
than we absolutely need to.
Councilman Boyt: Mat would happen if your customer base didn't build? Then
are you still going to go ahead and build the permanent structure? '
Tan Mork: Well, I would say that certainly we can't expect to be at home in a
temporary building or modular building forever. In actual fact, we have to
construct our permanent building within I believe it's a 2 year timiefraime with
our agreement with the HRA or we forfeit the lard. Sansone else•osn are in and
develop a bank on that site so we absolutely will construct the permanent
building under the conditions of the purchase agreement. I don't think there's
any question about that.
Councilwoman Dimler: Tan, I have a question. It was my understanding that you
Were going to build around the modular facility?
!tan ?brk: Correct.
Councilwoman Dimler: Could you lain that? It doesn't look like it
�P to me.
1
8
. City Council Meeting • .tober 23, 1989
0
Tom Mark: We're intending to locate the modular building on the eastern portion
of the site. The bulk of the construction activity will be in the central and
western portion of the site and what we have attempted to do is locate the
' modular building in a fashion such that we can accommodate continuing drive up
traffic through our modular building at the same time that we're building.
Councilwoman Dimler: While you're constructing but after your construction,
what are you going to do with your modular?
Tom Mork: It will be down within a week after we receive our certificate of
' occupancy. I believe the Planning Commission further put in the condition that
it would be no later than 9 months after the issuance of the building permit for
the permanent building and that's a time table that we can certainly live with.
Councilwoman Dimler: I misunderstood you then because when I asked that
question to you the other day, I thought that you were going to incorporate it
into your...
Tom Mork: No. Absolutely not. That will be green space when it's all done.
' Mayor Chmuel: Any other questions?
Councilman Boyt: Can anybody think of a way to add anymore assurance to this
list of conditions? Are you going to have, if worse goes to worse and you do in
1 fact not build, how much money do you have in this piece of property 2 years
from now? You've got the $200,000.00 for improvements. Do you have anything
else in it?
TOP' Mork: Well at that point we would have closed on the property and I believe
that the aggregate purchase price is $4.50 times whatever the amount of land is.
• It's approximately 110,000 square feet.
' Todd Gerhardt: $470,000.00.
' Councilman Boyt: So your expenses and liability then would be somewhere around
$700,000.00 total?
' Todd Gerhardt: He's incurred architectural fees and rendering, a site plan so.
Councilman Boyt: Well that's a ballpark figure Todd? $700,000.00?
Todd Gerhardt: Minimum.
Councilman Boyt: I guess I can live with that sort of risk. I would approval
' of item 1(j) with the conditions noted in the staff report.
Councilwoman Dimler: I'll second that.
Councilman Boyt moved, Councilwoman Dimler seconded to approve Site Plan #89-6
for Crossroads National Bank as shown on the plan dated September 22, 1989
pursuant to the City Manager's recommendations. All voted in favor and the
motion carried.
9
I
CHANHASSEN PLANNING COMMISSION
REGULAR MEETING
DECEMBER 6, 1989
Chairman Conrad called the meeting to order at 7:45 p.m. . '
MEMBERS PRESENT: Tim Erhart, Steve Emmings, Annette Ellson, Ladd Conrad
and Brian Batzli
MEMBERS ABSENT: Jim Wildermuth
STAFF PRESENT: Paul Krauss , Director of Planning; Jo Ann Olsen, Senior.
Planner and Sharmin Al-Jaff, Planning Intern
PUBLIC HEARING:
PRELIMINARY PLAT TO REPLAT LOTS 5-9, BLOCK 1, FRONTIER DEVELOPMEMNT PARK
(16.77 ACRES) INTO TWO LOTS AND FOUR OUTLOTS ON PROPERTY ZONED BH, HIGHWAY
BUSINESS DISTRICT AND LOCATED ON THE EAST AND WEST SIDES OF MARKET 111 BOULEVARD, NORTH OF HWY. 5 AND SOUTH OF THE SOO LINE RAILROAD, CROSSROADS
PLAZA ADDITION, CITY OF CHANHASSEN.
Sharmin Al-Jaff presented the staff report. Chairman Conrad called the
public hearing to order .
Krauss : We should add that that last condition is a new one.
Emmings: Yeah, would you say it again? '
Krauss : What we' re proposing is that, there's a problem in there that the
underlying zoning does not conform to the new location of Market Blvd. . We
have the BH and the BG districts which will be split partially by the new
alignment. There' s a corner of the BG commercial area that extends over
onto the bank property. I think this pretty much outlines it right there.
What we want to do is make our zoning map look a little more reasonable by I
extending the BH district, which is over here, up to the street. So what
we're asking is that the future purchaser of Lot 1, the bank, not contest,
be required to not contest a city sponsored rezoning . '
Emmings: So what do you want that last condition to say?
Krauss : That the owner of Lot 1, Block 1 agree not to contest the City
sponsored rezoning of the entire site to the BH district.
Emmings: Are we still in a position with that purchase that we can impose I
a condition on him at this point in time?
Krauss: They haven't closed on the property. '
Emmings: Okay.
Conrad: Okay. It is a public hearing. Are there any comments? I
Erhart moved, Emmings seconded to close the public hearing. All voted in I
favor and the motion carried. The public hearing was closed.
r
' Planning Commission Meeting
December 6, 1989 - Page 2
I
' Batzli : Why again do you want to make Outlot A into Lot 2, Block 1 at this
time?
Krauss : The purpose for that is that what we'd like to call Lot 2 is a
' buildable lot. That the HRA intends at some point to sell to another
purchaser . Conveying it with outlot status means it would have to be
replatted to remove that status in the future. It would seem to be a lot
' cleaner for all concerned if the HRA just had a simple Lot 2 to deal with
than to sell .
' Batzli : What' s the down side of doing it now and not leaving it an outlot?
Krauss: I don' t think there is any since the City owns it. It's not as
though it's an independent owner who can come in and just say, I have a
' site plan. You have to approve it. It is an HRA controlled parcel .
Ellson: When I first read this I got really confused reading the map but
' can you point out C again? Just that whole strip. Even though that one
kind of crosses it.
Krauss : Well it' s called D on the other side I think.
Ellson: And like this one crosses over .
Emmings: No, this whole thing is C all the way down to here.
Ellson: That's what I was thinking that B maybe crossed it. I don' t have
Ianything else to add.
Emmings: I don' t have any other questions.
Erhart: I wish I had some questions but I just can't think of any.
Conrad : I can' t think of any either .
Emmings moved, Batzli seconded that the Planning Commission recommend
I approval of Subdivision Request #89-19 as shown on the preliminary plat
dated October 27, 1989 and subject to the following conditions:
1. The following easements shall be provided:
' a. A 20 foot wide utility and drainage easement will be required
on Lot 2, Block 1.
b. The final plat should include the typical utility and drainage
easements over each lot; 5 feet on side lot lines and 10 feet over
the front and rear lot lines.
c. An additional utility easement should be shown on the plat for the
existing gas line across the northerly lot lines of Outlot E and
Lots 1 and 2, Block 1.
1
Planning Commission Meeting
December 6, 1989 - Page 3
I
d. Cross access easement over the southern 50 feet of the common lot
line between Lots 1 and 2. The easement shall be 20 feet wide on
each lot.
2. The final plat should show Outlot A as Lot 2, Block 1.
3. The Lot 1 park dedication fee should be paid as outlined in the HRA's
purchase agreement at the time of sale. The City reserves the right to '
acquire park dedication fees on Lot 2 at such time as it is proposed
for development.
4. The owner of Lot 1, Block 1 agree not to contest the City sponsored
rezoning of the entire site to the BH district.
All voted in favor and the motion carried. '
PUBLIC HEARING:
ZONING ORDINANCE AMENDMENT TO AMEND THE CITY CODE, DIVISION 6, SITE PLAN
REVIEW TO REVISE THE PROCEDURE, EXPAND ON DEVELOPMENT STANDARDS AND REQUIRE
FINANCIAL GUARANTEES FOR LANDSCAPING AND OTHER SITE IMPROVEMENTS. •
Paul Krauss presented the staff report. Chairman Conrad called the public
hearing to order .
Earrings moved, Ellson seconded to close the public hearing. All voted in
favor and the motion carried. The public hearing was closed. I
Erhart: I don' t really have anything right now Ladd. Maybe after some
discussion.
Emmings: I've just got a couple things. On page 6 on item C at the top.
Where it says, in the second sentence, low profile, self contained
mechanical units which blend in with the building, architecture are exempt
from the screening requirement. I wonder if we should add onto that, that
unless topography makes them visible to other properties or something like
that so that we have an out there to require screening in some odd
circumstance. I think the general idea is fine.
Krauss: Should we say then may be exempt instead of are? '
Emmings: Yeah. Or may be exempt. That's right. That would be fine. I 'd
agree with that change rather than the language I had. That's even broader 11
and I like it better because it gives them the idea that we might accept
something other than the screening which I think is fine but it doesn' t
make it automatic. If they buy a low profile unit because there might be
one that's obnoxious. Alright. The other thing is, I 'm just glad that
Howard wasn' t here to hear you say plain concrete block.
Conrad: Yeah, Howard would not go along with that.