A-1-c. Multiple Buildings as a Conditional Use Ai - c
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q S CITY OF ClIANIIASSEN
Chanhassen is a Community for Life-Providing for Today and Planning for Tomorrow
' II..AS
MEMORANDUM
TO: City Council
FROM: MacKenzie Walters, Assistant Planner
DATE: January 9, 2017
Subject: CUP for Multiple Principal Buildings
ISSUE
City Code permits multiple buildings on one lot by Conditional Use Permit(CUP) with only
general criteria listed to evaluate the development. This can lead to an increased burden on
public infrastructure, especially if the use for one or more of the buildings changes after the CUP
is issued.
EXAMPLES
800 78th Street W: Lunds & Byerly's and FedEx Office Print& Ship Center share a single parcel
zoned Central Business District. Without a CUP the parcel would have been subdivided to place
the FedEX Office and Print & Ship Center on its own lot.
8200 Audubon Rd: AutoMotorPlex has ten buildings located on a single parcel. Nine of those are
for automobile storage and one is a clubhouse/museum. Without a CUP this development would
have required a subdivision, planned unit development(PUD), or common interest community
plat(CIC).
BACKGROUND
Section 20-902 of the City Code states that multiple principal buildings may be allowed by CUP
in nonresidential zones. There are no specific criteria established for this type of CUP so it is
governed by the general issuance standards contained in Section 20-232. These criteria stipulate
that the CUP should be granted if it will not be detrimental to the neighborhood or city, is in line
with the comprehensive plan, can be adequately served by existing infrastructure or appropriate
infrastructure will be built to accommodate it, and will not degrade the natural or built
environment. In order to deny a CUP,the city must find that it is not in line with these criteria.
PH 952.227.1100• www.cichanhassen.mn.us • FX 952.227.1110
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Staff Report for City Council
Issue Paper—CUP for Multiple Principal Buildings
January 9,2017
Page 2 of 5
Section 20-233 gives the city the right to place conditions designed to mitigated any anticipated
adverse impacts associated with the CUP upon any issued CUP. The ordinance also states that
special consideration should be given to screening adjacent properties from the impact of the use
allowed by the CUP. All issued CUPs come with the condition that the property cannot be
subdivided nor may the lot lines be modified while the CUP is active.
Multiple buildings are a special type of CUP because they are issued not for a use but rather a
utilization of a property. Initially they would be issued based on their compliance with the
parcel's capacity and zoning district compliance; however,because CUPs are issued for a
particular use,not to a particular individual they run with the property. This means that so long
as the use continues and the conditions under which the permit was issued are met the CUP
remains in effect, in this case even if the parcel owner or business using the buildings changes.
Developers in Chanhassen who wish to have multiple principal buildings in non-residential
districts may do so by requesting a CUP or creating a PUD or CIC. It should be noted that
grouping multiple buildings on one lot is treated differently than having multiple uses/tenants in
a single building,which is generally allowed without a CUP, PUD, CIC, or variance.
KFS CITIES RELEVANT CUP REQUIREMENTS AND IMPOSABLE CONDIDIONS
Chaska: Section 1; 14.7 Adequate utilities, access roads, drainage, and necessary facilities have
been or will be provided. Can impose conditions needed to ensure compliance with the above
and protect the public interest. Number of principal buildings is stipulated by district.
Cottage Grove: Section 11-2-9 In line with and have minimal impact on surrounding land uses,
not create a burden on existing infrastructure. Can impose conditions on permit and require
performance bond to ensure compliance with the established conditions. Number of principal
buildings stipulated by district.
Elk River: Section 30-654 Consistent with comprehensive plan, will not negatively impact the
general welfare, and can be supported by existing infrastructure. Section 30-655 can impose
conditions needed to provide utilities,minimize impact on infrastructure, and mitigate disruption
of surrounding land use. Section 30-792 allows multiple structures in PUDs or with public
hearing,recommendation of plan commission, and council approval.
Inver Grove Heights: Section 10-3A-5 Compatible with the comprehensive plan, appropriate for
the physical characteristics of the parcel in question, will not degrade surrounding properties or
environment, and does not overburden existing infrastructure. Has blanket authority to modify
permit and/or impose conditions.Number of principal buildings stipulated by district.
Staff Report for City Council
Issue Paper—CUP for Multiple Principal Buildings
January 9,2017
Page 3 of 5
Lino Lakes: Section 1007.016 Minimal to no increase in traffic, is consistent with the city's land
use plan, and shall not harm the general welfare. The city may allow developers to finance any
infrastructure improvements needed to meet the above criteria. Specific criteria for different
specific conditional uses are listed in the zoning districts. 1007.042(4)(d) Multiple principal
buildings only allowed on PUDs.
Prior Lake: Section 1108.200 In line with comprehensive plan, not detrimental to the general
welfare,no negative impact on adjacent parcels, and has a landscape plan. The city may place
conditions stricter than those specified in zoning so long as they are consistent with conditions
for approving a CUP. 1101.501(4) Multiple principal buildings only allowed by CUP or PUD.
No unique conditions.
Rosemount: Section 11-10-7 Must be harmonious with the comprehensive plan,not increase
traffic, not harm the general welfare, and not impose a burden on existing infrastructure.
Additional conditions are listed for each zoning district. May apply any reasonable condition to
the use to insure the above. 11-2-2 One building per lot except PUD or multi-family projects.
Savage: Section 152.031 Fits with the comprehensive plan, does not harm the general welfare,
and does not degrade infrastructure or surrounding properties. May establish any condition
needed to mitigate the CUPs impact. Multiple buildings allowed in non-residential districts.
Shakopee: Section 151.011 Adequate infrastructure must be present to support the use and
additional conditions may be imposed to meet the chapter's requirements. Detailed criteria for
each allowed conditional use per zone. Number of principal buildings stipulated by district.
Stillwater: Section 31-207 Must conform to the requirements and intent of zoning code,plan,
and will not be a nuisance or harm the general welfare. Can impose"any conditions necessary
for the public welfare."Number of principal buildings stipulated by district.
ANALYSIS
Allowing properties to have multiple principal buildings means lots that would otherwise have
been subdivided are left intact. This can be desirable as it allows a single owner to keep the
parcel under a single PIN, results in less of the parcel's usable area being lost to setbacks, and
prevents the arbitrary connecting of buildings,but it also leads to more intense use of the
property. This more intense use can place an added burden on public services and infrastructure.
The CUP process can allow developers to avoid the development fees and land dedications
involved with the subdivision process. The city uses these fees to help create and maintain its
park and trail system, defray the cost of storm water management,pay for sewer and water
infrastructure and assemble land for public purposes.
Chanhassen's code allows for the city to deny a conditional use if it won't be served by essential
public facilities and services. The city can also require that the applicant finance the
improvements needed to provide these services,but it can be hard to anticipate what those will
Staff Report for City Council
Issue Paper—CUP for Multiple Principal Buildings
January 9, 2017
Page 4 of 5
be when multiple buildings are built on a single parcel. Many exactions are calculated by parcel
area and are not impacted by the number of units on a parcel; however, allowing multiple
buildings usually creates a more intense use and burden on public services than would otherwise
be allowed.
When staff examined ten similar cities we discovered that six of them do not have blanket
provisions disallowing multiple principal buildings on lots. These cities tend to limit the number
of principal structures in residential districts,but their codes are silent on the number of principal
buildings which can be constructed in other districts. Of the four cities that have a general
provision stipulating that only one principal building is allowed per lot, two explicitly state that
only planned unit developments (PUDs) are allowed to have multiple buildings. The other two
allow multiple buildings either by CUP or the approval of the city council. Chanhassen allows
multiple buildings on a single nonresidential lot through a CUP or PUD.
The only other city to make multiple buildings on one lot a CUP, Prior Lake, does not list any
special criteria that should be used to evaluate CUPs for multiple buildings. Like all other cities,
it does have a list of general criteria that apply to all CUPs. The general criteria are virtually
identical between the cities and focus on making sure that the use can be supported by the area's
infrastructure, will not harm the general welfare of the community, and will not have a negative
impact on surrounding properties.
All of the investigated cities have the ability to impose conditions on CUPs. Seven of the ten
cities are limited to imposing conditions related to ensuring compliance with their criteria for
approving conditional uses. Three cities have more general authority to impose conditions.
Chanhassen has the authority to impose any conditions it deems necessary to mitigate the impact
of a conditional use.
Chanhassen's treatment of CUPs is in line with surrounding communities; however, classifying
multiple buildings as a conditional use creates some unique concerns. A conditional use permit
which is granted to allow an industrial property to have multiple principal buildings may be
evaluated and issued based on a proposed intensity of use which the surrounding area can
support. Once this type of CUP is issued it will remain in effect so long as multiple buildings are
present, even if the use of these buildings changes to another use as allowed by the district
regulations. If buildings change from a low intensity use, like warehousing, to a higher intensity
use, like an indoor health and recreation club, it can place unforeseen demands on the area's
infrastructure and create new conflicts with the surrounding properties.
Finally, staff examined numerous developments throughout Chanhassen and could not find one
that would not have been possible without a CUP for multiple buildings. Most projects in
Chanhassen that locate multiple buildings on a single parcel are either CICs or PUDs. In several
cases,properties that initially requested a multiple building CUP ultimately decided to become
CICs. The few projects we found that have a CUP for multiple buildings could have been
developed utilizing a CIC, PUD, or the city's subdivision process.
Staff Report for City Council
Issue Paper—CUP for Multiple Principal Buildings
January 9,2017
Page 5 of 5
ALTERNATIVES
1) Do nothing. Section 20-232 provides sufficient grounds to deny a CUP that would place a
significant burden on the city's infrastructure.
2) Amend Section 20-902 to establish one principal building per lot for all zoning districts.
This would require any parcel wishing to have multiple principal buildings to either be a
PUD, CIC, or seek a variance.
3) Add subsection listing additional criteria and conditions for Multiple Principal Buildings.
Criteria could be established governing the amount of intensification that could be
allowed by a CUP for multiple principal buildings. Potential criteria could be:
1) The nature of the proposed use or parcel makes subdividing impractical.
2) The applicant shall finance any and all infrastructure improvements necessary to
provide essential public facilities and services, including but not limited to fees as
provide for by Sections 18-76 to 18-79 of the City Code.
a. If the property was previously subdivided and exactions were paid at that
time, the applicant shall only be liable for Park and Trail fees proportional to
the intensification of use associated with the CUP.
b. If the property was previously subdivided,but exactions were either not paid
or only partially paid, the applicant shall be liable for all unpaid exactions.
c. If the property was not previously subdivided,the applicant shall be assessed
development fees commensurate with those that would be assessed were the
property being subdivided.
RECOMMENDAION
Alternative two would remove a seldom used and redundant mechanic from the city's Ordinance.
Relatively few developers have requested a CUP for multiple buildings, and these developments
all could have been accomplished either through the subdivision, CIC, or PUD processes.
Staff is requesting direction from the City Council on how best to address this concern.
ATTACHMENTS
Attachment 1: Subdivision
Attachment 2: PUD
Attachment 3: CIC
Attachment 4: CUP
Attachment 5: Section 20-902 and Section 20-231 to 20-237
G:plan\city code\issue paper\multiple buildings cup\issue paper multiple buildings CUP criteria_CC
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Attachment 5
• Sec.20-902.-Multiple principal buildings on same lot.
In any single-family detached residential district not more than one principal building shall be permitted to be
erected on a single building lot. Groupings of buildings in other districts may only be permitted by
conditional use permit
• DIVISION 2.-CONDITIONAL USE PERMITS
• Sec. 20-231.-Application,public hearing,notice and procedure.
(a)The application,public hearing,public notice and procedure requirements for conditional use permits shall
be the same as those for amendments as provided in article II, division 2,except that the permit shall be
issued on the affirmative vote of a majority of the entire council.Although specific submissions required to
complete an application for a conditional use permit may vary with the specific use and the district in which
it is located,all applications for such permits must include at minimum a site plan that clearly illustrates the
following: Proposed land use building mapping and functions,circulation and parking areas,planting areas
and treatment,sign locations and type,basic lighting concerns,the relationship of the proposed project to
neighboring uses,environmental impacts and demand for municipal services.
(b)Prior to filing an application for a conditional use,the applicant shall attend a conference with city
staff.The primary purpose of the conference shall be to provide the applicant with an opportunity to
gather information and obtain guidance on the general merits of the proposal and its conformity to the
provisions of the comprehensive plan and the City Code before incurring substantial expense.
(Ord.No. 80,Art. III, § 2(3-2-2), 12-15-86;Ord.No. 474, §4, 10-13-08)
• Sec. 20-232.-General issuance standards.
The planning commission shall recommend a conditional use permit and the council shall issue such conditional
use permits only if it finds that such use at the proposed location:
(1)Will not be detrimental to or endanger the public health, safety,comfort,convenience or general
welfare of the neighborhood or the city.
(2)Will be consistent with the objectives of the city's comprehensive plan and this chapter.
(3)Will be designed,constructed, operated and maintained so to be compatible in appearance with the
existing or intended character of the general vicinity and will not change the essential character of
that area.
(4)Will not be hazardous or disturbing to existing or planned neighboring uses.
(5)Will be served adequately by essential public facilities and services,including streets,police and fire
protection,drainage structures,refuse disposal,water and sewer systems and schools; or will be
served adequately by such facilities and services provided by the persons or agencies responsible
for the establishment of the proposed use.
(6) Will not create excessive requirements for public facilities and services and will not be detrimental
to the economic welfare of the community.
(7)Will not involve uses, activities,processes,materials, equipment and conditions of operation that
will be detrimental to any persons,property or the general welfare due to excessive production of
traffic,noise,smoke,fumes,glare,odors,rodents or trash.
(8)Will have vehicular approaches to the property which do not create traffic congestion or interfere
with traffic or surrounding public thoroughfares.
(9)Will not result in the destruction,loss or damage of solar access,natural, scenic or historic features
of major significance.
(10)Will be aesthetically compatible with the area.
(11)Will not depreciate surrounding property values.
(12)Will meet standards prescribed for certain uses as provided in this article.
(Ord.No. 80,Art. III, § 2(3-2-3), 12-15-86; Ord.No. 377, § 23, 5-24-04)
• Sec.20-233.-Conditions imposable on permits.
(a) In reviewing applications for conditional use permits,the planning commission and the council may attach
reasonable conditions to mitigate anticipated adverse impacts associated with these uses,to protect the value
of other property within the district, and to achieve the goals and objectives of the comprehensive plan. Such
conditions may include,but are not limited to the following:
(1) Controlling the number, area,bulk,height and location of such uses.
(2)Regulating ingress and egress to the property and the proposed structures thereon with particular
reference to vehicle and pedestrian safety and convenience,traffic flow and control and access in
case of fire or other catastrophe.
(3)Regulating off-street parking and loading areas where required.
(4)Utilities with reference to location availability and compatibility.
(5)Berming, fencing,screening,landscaping or other facilities to protect nearby property.
(6)Compatibility of appearance.
(b) In determining conditions, special considerations shall be given to protecting immediately adjacent
properties from objectionable views,noise,traffic and other negative characteristics associated with such
uses.
(c) It is a condition of every conditional use permit that the property for which the permit is issued not be
subdivided or the lot lines of the property altered.
(Ord.No. 80,Art. III, § 2(3-2-4), 12-15-86; Ord.No. 377, § 24, 5-24-04; Ord.No.477, § 1, 1-26-09)
• Sec.20-234.-Denial for noncompliance.
If the council denies a conditional use permit,it shall state findings as to the ways in which the proposed use
does not comply with the standards required by this chapter.
(Ord.No. 80,Art. III, § 2(3-2-5), 12-15-86)
• Sec.20-235.-Permits not personal.
A conditional use permit shall be issued for a particular use and not for a particular person.
(Ord.No. 80,Art. III, § 2(3-2-6), 12-15-86)
• Sec.20-236. -Expiration.
If substantial construction has not taken place within one year of the date on which the conditional use permit
was granted,the permit is void except that,on application,the council, after receiving recommendation from
the planning commission,may extend the permit for such additional period as it deems appropriate. If the
conditional use is discontinued for six months,the conditional use permit shall become void.
(Ord.No. 80,Art. III, § 2(3-2-8), 12-15-86;Ord.No. 377, § 25,5-24-04)
• Sec.20-237.-Revocation and inspection.
(a)Failure to comply with any condition set forth in a conditional use permit shall be a misdemeanor and shall
also constitute sufficient cause for the revocation of the conditional use permit by the city council following
a public hearing. The property owner shall be notified in advance of the city council's review of the permit.
(b) Inspections will be conducted at least annually to determine compliance with the terms of a
conditional use permit.
(Ord.No. 80,Art. III, § 2(3-2-7), 12-15-86;Ord.No. 106, § 1, 8-14-89)