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Attachment 6. Multiple Buildings as a Conditional UseMEMORANDUM CITY OF C HANHASSE N Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow TO: City Council FROM: MacKenzie Walters, Assistant Planner DATE: February 7, 2017 T/ Subject: CUP for Multiple Principal Buildings Proposed Motion: U -2.o1 "The Chanhassen Planning Commission recommends that the City Council adopt the attached ordinance amending Chapters 20 of the Chanhassen City Code, concerning Conditional Use Permits for Multiple Principal Buildings on a single parcel." On January 9, 2017 staff presented an issue paper to the City Council informing them that staff was concerned that the conditional use permit allowing for multiple buildings to be located on a single parcel was redundant. Additional, staff felt there was a potential for this mechanism to be used to avoid the subdivision process and undesirably increase density. The City Council directed staff to propose a way to address these concerns On August 16, 2016 staff presented an issue paper to the Planning Commission informing them that staff was concerned that the conditional use permit allowing for multiple buildings to be located on a single parcel was redundant. Additional, staff felt there was a potential for this mechanism to be used to avoid the subdivision process and undesirably increase density. Planning Commission directed staff to propose a way to address these concerns. 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.d.chanhassen.mn.us • FX952.227.1110 7700 MARKET BOULEVARD • PO BOX 147 • CHANHASSEN • MINNESOTA 55317 Planning Commission City Code Amendments — Multiple Buildings as a Conditional Use February 7, 2017 Page 2 of 6 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. EXAMPLES 800 78`h 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). 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. Planning Commission City Code Amendments — Multiple Buildings as a Conditional Use February 7, 2017 Page 3 of 6 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. 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. Planning Commission City Code Amendments — Multiple Buildings as a Conditional Use February 7, 2017 Page 4 of 6 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 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. Planning Commission City Code Amendments — Multiple Buildings as a Conditional Use February 7, 2017 Page 5 of 6 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. hi 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. 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. Planning Commission City Code Amendments — Multiple Buildings as a Conditional Use February 7, 2017 Page 6 of 6 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 proposes that the following changes be made to the City Code: Section 20-902 In any single-family detached residential district, business, commercial, office, or industrial districts not more than one principal building shall be permitted to be erected on a single building lot. Groupings of buildings may be permitted in Planned Unit Development Districts. ATTACHMENTS 1. Subdivision 2. PUD 3. CIC 4. CUP 5. Section 20-902 and Section 20-231 to 20-237 6. Draft Ordinance G:plan\city code\issue paper\multiple buildings cup\issue paper multiple buildings CUP criteria—CC _ l= Lit r i in tka r. t Ln Ln i s p R,,, U©� • `OQ LI lx!g �`�"�t`AILAnI 1! FE V 16 all t" a ►__ Ili 131 78. In - 9006 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) CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA ORDINANCE NO. [insert number) AN ORDINANCE AMENDING CHAPTER 20 CHANHASSEN CITY CODE, ZONING, CONCERNING GENERAL SUPPLEMENTAL REGULATIONS THE CITY COUNCIL OF THE CITY OF CHANHASSEN ORDAINS: Section 1. Section 20-902 of the Chanhassen City Code is amended to read as follows: In any single-family detached residential district, business, commercial, office, or industrial districts not more than one principal building shall be permitted to be erected on a single building lot. Groupings of buildings may be permitted in Planned Unit Development Districts. Section 2. This ordinance shall be effective immediately upon its passage and publication. PASSED AND ADOPTED this [insert date] by the City Council of the City of Chanhassen, Minnesota Todd Gerhardt, City Manager Denny Laufenburger, Mayor (Published in the Chanhassen Villager on [insert date])