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03.21.2023 Planning CommissionCHANHASSEN PLANNING COMMISSION REGULAR MEETING MINUTES MARCH 21, 2023 CALL TO ORDER: Chairman Noyes called the meeting to order at 7:00 p.m. He noted he will adjust the agenda and begin with the Administrative Presentation. MEMBERS PRESENT: Eric Noyes, Erik Johnson, Perry Schwartz, Edward Goff, Kelsey Alto, Ryan Soller. MEMBERS ABSENT: None. STAFF PRESENT: Bob Generous, Senior Planner; Olivia Adomabea, Community Development Intern, Mackenzie Young-Walters, Associate Planner; Sharmeen Al-Jaff, Senior Planner; Eric Maass, Planning Director, Water Resources Engineer Joe Seidl. PUBLIC PRESENT: Tim and Nancy Crain 1956 Andrew Court Michael Huber 8976 Southwest Village Loop Len Simich Southwest Transit Matt Fyten Southwest Transit Leigh Stoakes Xcel Energy ADMINISTRATIVE PRESENTATION Planning Director Eric Maass invited Sharmeen Al-Jaff forward noting she has served the community for 32 years, spanning 5 decades, and he commends her for her work and for all she has done for the City of Chanhassen and its residents. He thanked her and shared this will be Ms. Al-Jaff’s last Planning Commission meeting as a staff member. Chair Noyes congratulated Ms. Al-Jaff on her retirement. Ms. Al-Jaff stated it has been an honor and a pleasure serving the residents of the community. PUBLIC HEARINGS: 1. 746 CARVER BEACH ROAD - CONSIDER A REQUEST FOR A VARIANCE TO BUILD A POOL, FENCE, AND RETAINING WALLS Community Development Intern Adomabea gave a summary of the staff report noting the applicant is requesting to build a pool, fence, and retaining walls within the require bluff setback and impact zone. The plat was recorded in 1927, zoned single-family residential, with a lot cover of 18.8% which is lower than the required 25%. The home was constructed prior to the city’s bluff ordinance and has numerous non-conforming features. The applicant is asking to rebuild existing retaining walls in poor condition, construct a swimming pool at the current location of a Planning Commission Minutes – March 21, 2023 2 concrete patio, and reinstall fencing that is in poor condition. Staff recommends the retaining wall request is approved. Regarding the pool, it would be an expansion from 240 square feet of the concrete patio with a 275 square-foot pool apron, which would add to the lot cover calculation. Although the project will create an expansion, it is already within the disturbed area within the bluff and will not exceed the 25% lot cover, hence staff recommends approval of the pool request. Regarding fencing, the existing fence on the southern property extends beyond the property line and the applicant wants to resolve that and pool fencing is required by code. Staff recommends approval of the fencing request. Given that the majority of the applicant’s rear-yard is encumbered by the bluff and that the portion in question has already been disturbed, Staff believes the applicant’s request is reasonable. The applicant has revised the original proposal to add 10 square feet and 35 square feet of new impervious surfaces within the bluff setback, and it has its genesis in the circumstances associated with the home's age and the property's topography. Commissioner Schwartz asked if the existing disturbance has modified the integrity of the bluff. Ms. Adomabea stated that the applicant indicated that the retaining wall is failing due to erosion. If the bluff had not been disturbed, erosion would not have been a problem on the property. Commissioner Schwartz asked if the construction of the apron will further disturb the integrity of the bluff. Ms. Adomabea replied in the negative noting the boundary of the proposed pool is not within the bluff area. Mr. Young-Walters noted in talking about disturbance of the bluff, it is very clear that during development they leveled-off a bit of the northwest portion of the bluff to create the building pad and used a series of retaining walls. Some of those walls are not in great condition so part of the application is to repair and re-stabilize those walls. Regarding the pool, they will be replacing a deteriorating boulder wall with a new concrete wall that would shore up that portion of the slope and improve the property from a stability standpoint. Chairman Noyes opened the public hearing. There were no public comments. Chairman Noyes closed the public hearing. Commissioner Alto moved, Commissioner Goff seconded that the Chanhassen Board of Appeals and Adjustments approves the variance request to construct a swimming pool, retaining walls, and a fence within the required bluff setback and impact zone, subject to the conditions of approval and adopts the attached Findings of Facts and Decision. All voted in favor and the motion carried unanimously with a vote of 6 to 0. 2. SOUTHWEST VILLAGE - PUD AMENDMENT AND SITE PLAN AMENDMENT TO ALLOW A MULTITENANT USER AND A DRIVE THROUGH FOR A COFFEE SHOP, 680 SOUTHWEST VILLAGE DRIVE Planning Commission Minutes – March 21, 2023 3 Senior Planner Generous gave a summary of his written report noting the applicant is requesting an amendment of an existing PUD to permit a coffee shop with a drive-through, an amendment to sign requirements, and site plan approval for a 12,600 square foot multi-tenant commercial building. The plan is very consistent with commercial development seen in the community, is guided for mixed-use, and Mr. Generous gave history of the property and existing buildings upon it. Regarding signage, the applicant proposes a sign at the location of the drive-through, which would need to be non-illuminated and a monument sign one foot taller than permitted. Staff does not support this amendment. The applicant held a neighborhood meeting and Mr. Generous heard that it went well and that neighbors were in favor of the project. He shared about site-plan review of the building, coffee shop, and drive-through area noting access is from Great Plains Boulevard and Lyman Boulevard. As part of the development, the applicant would provide storm water improvements and an emergency fire access. The city has worked extensively with the architect on an interesting, architecturally pleasing design. Water Resources Engineer Seidl shared about stormwater and water routing on the existing property noting that minimal grading is needed to facilitate construction of the site. The design utilizes three separate storm water BMPs (Best Management Practices) to treat and detain stormwater before discharge. He noted some concerns from staff regarding the proposed irrigation and reuse system in that it does not seem the system is large enough to store the water needed to properly irrigate the area. Staff is asking the applicant for additional information and potentially adjusting the design. Mr. Generous stated staff recommends approval of the amendment to the PUD for mixed-use development and approval of the site-plan for a 12,600 square foot commercial building with drive-through coffee shop. Commissioner Schwartz encourages the use of clean energy or alternative energy sources within the building. Commissioner Alto noted the parking lot would have street lighting and she does not think a lit sign would be any brighter than what the lot currently is. Mr. Generous noted the PUD currently prohibits illuminated signs to the south and that would need to be changed. It also only permits signs on walls that are entrances or street frontage. Commissioner Soller clarified the motion as written would not allow for the illuminated light facing south or the monument sign expansion. Mr. Generous replied in the affirmative. Commissioner Goff asked if they have looked at traffic impacts in the area, and with the Southwest Transit buses. Mr. Generous replied in the affirmative noting a traffic study was done on the project and there are fewer trip generations than originally proposed as part of the estimate. There were no conflicts and level of service will not be degraded. Planning Commission Minutes – March 21, 2023 4 Commissioner Soller asked to look at the overhead of the drive-through noted he has been impacted by poorly designed drive-throughs and wants to be sure this is situated properly. He thinks it looks quite sensible. Len Simich, representing the owner, was a former CEO of Southwest Transit. He introduced Matt Fyten, the interim CEO at Southwest. Matt Fyten noted this transit-oriented development is a great project and they are excited about it. Mr. Simich noted regarding environmental sustainability, the plans already have a lot including geothermal wells, landscaping, pavers, and there are some federal grants that will help, also. Mr. Fyten shared they have been active in sustainability space and have received over $11 million in federal funds over the last year for various sustainability activities. On this site they will install five EV charging stations within the parking ramp and are looking at a raised solar roof on the top-level deck of the parking ramp. Commissioner Alto asked whether the lawn could be a pollinator habitat rather than just sod. Mr. Simich replied they can look at that noting the goal is to be as efficient as possible without damaging the aesthetics and they are open to anything. He asked the Commission to get specific requests to them and they will try to work those in. He shared about other sustainability pieces they will incorporate including LED lights on the site, the irrigation system, rainwater harvesting, and occupancy sensors to cut back on electricity use. Mr. Simich stated Southwest is here to work with the city and comply with them. He shared about a multi-use patio on the site and access for emergency services. Chairman Noyes opened the public hearing. Michael Huber is in favor of solar panels on the roof and the EV charging stations. He has previously mentioned putting solar panels on the roof would hide the HVAC units. He is in favor of not having illuminated lighting on the site and he was concerned about the traffic and the homeowners association being responsible for part of the shared roadways. He does not know if the association can renegotiate due to the increased traffic going into the coffee shop. Chairman Noyes closed the public hearing. Commissioner Schwartz is encouraged to hear about the alternative energy items the applicant is proposing and wishes something was embedded in City Code that made it a requirement. Commissioner Noyes asked to discuss signage on the site. Commissioner Alto spoke about the monument noting it is only one foot to be in compliance. Regarding the coffee shop sign, most traffic is in the morning or during the day and people will Planning Commission Minutes – March 21, 2023 5 know it is there whether there is a lighted sign or not. She is okay with the sign as long as it is not lit and meets the city brand standards for signage. Commissioner Johnson agrees that a lighted sign is not necessary. Regarding adding height to the monument, is it really necessary as the buildings will also have signs on them and will be seen from the road. Commissioner Schwartz noted an illuminated sign indicates that a business is open. In the winter when it gets darker at 4:00 p.m. it could suggest to customers that the businesses are not open. Commissioner Goff stated the way it reads now the two sign variances are not included. If approved, it will get the Applicant off and running and the Commission may see them again for a sign variance. It was mentioned that the applicant has worked closely with the city. He would be in favor of moving forward with the motion as-is. Mr. Generous noted the applicant is allowed to have a lighted sign on the east and west elevation. It is the south elevation that is directly facing residential that is prohibited because there is no entrance and it is not street frontage. Commissioner Schwartz moved, Commissioner Soller seconded the Chanhassen Planning Commission recommends approval of Southwest Village Planned Unit Development (PUD) Mixed-Use, Transit-Oriented Development PUD, Amendment Ordinance, and site plan approval for a 12,600 square foot one-story commercial building with a drive-through coffee shop as shown in plans dated February 17, 2023, subject to the conditions of approval, and adopts the Findings of Fact and Recommendation. All voted in favor and the motion carried unanimously with a vote of 6 to 0. 3. XCEL SERVICE CENTER- REZONING FROM A-2 TO PUD, SITE PLAN REVIEW AND WETLAND ALTERATION PERMIT, 1891 ARBORETUM BOULEVARD Senior Planner Generous gave a summary of the Staff report noting the Applicant is requesting a rezoning from Agricultural Estate District to Planned Unit Development Office Industrial PUD, as well as site plan approval and wetland alteration permit for development on the site. The land use plan has guided it for office industrial use on the north side, and Mr. Generous shared about topography and wetlands on the site. This PUD is specifically for the Xcel Service Center which defines five buildings, parking lot, storage buildings, and a communications tower. Mr. Generous noted a maintenance building for the servicing of boom trucks that will be extended 55 feet in the air. He shared about sewer, water, storm water treatment, an outdoor storage area on the site, and walked the Commissioners through the proposed design. The top of the vehicle storage building will be constructed and designed to install solar panels at a later time. Mr. Generous shared about architectural design, sidewalks, an employee patio area, lighting, and landscaping. Water Resources Engineer Seidl stated this is a very challenging and complex site regarding stormwater design and water resources. There are two wetlands on site, as well two waters of the U.S. under Army Corps of Engineers jurisdiction, which are a tributary to Bluff Creek, and a tributary to the tributary of Bluff Creek. He also noted a 42-inch culvert that conveys water to Planning Commission Minutes – March 21, 2023 6 wetland 2, and very steep grades. He spoke about documented erosion problems on the site, as well as grading and erosion control plans with installation of retaining walls, erosion and sediment control plans, and stormwater design including BMPs to maintain existing drainage patterns on the site. Mr. Seidl gave detail on the wetland alteration permit, noting it is a vigorous process and the applicant worked with the city on revised designs, the City of Chanhassen and the Army Corps of Engineers also need to approve the permit, and explained the process of wetland mitigation banks and credits. Mr. Generous noted staff recommends approval of the rezoning and site plan approval for the five buildings, communication tower and screen, outdoor storage, and wetland alteration permit subject to the conditions of approval and adoption of the Findings of Fact and Recommendation. Commissioner Schwartz asked why it is not possible to mitigate the wetland on the property or within the City of Chanhassen. Mr. Seidl noted that is a great question that he also asked. He noted it has been proven that smaller wetland mitigation projects are not very successful, and the Army Corps of Engineers would not approve an application showing wetland mitigation on site. This is what was approved by the Technical Evaluation Panel and it is common. He clarified the process of purchasing wetland credits in the State. Commissioner Goff asked if the entire site will be fenced. Mr. Generous replied the yard area will have security fencing with gates. Commissioner Schwartz asked if any yard lighting will adversely affect the townhomes to the south. Mr. Generous replied they should not as they will all be directed on site with a 90-degree cutoff. Leigh Stoakes, Project Engineer with Xcel Energy, explained the goal of the project is to combine the Waconia and Shorewood Service Centers into a single site. This site in Chanhassen met their criteria, and although it is a very challenging site, he thinks it will be an asset to the city and will provide a critical service. Chairman Noyes opened the public hearing. Nancy Crain lives just west of the development and shared concerns regarding the lighting. She noted the Coulter Boulevard is at a high point in Chanhassen and everything goes down to the south. If they go up 60 feet it will probably clear the tree line and have visibility for quite a distance. The idea of having a lighted sign on the building runs counter to the way the residential neighborhood feels with marshland, the creek, woods, and wildlife. She uses her deck in the evening and enjoys a dark night sky. She thinks the impact on residents is worth considering and she hopes they will not have a lighted sign on the building. Planning Commission Minutes – March 21, 2023 7 Tim Crain noted they live in the townhouse units and spoke about a berm with some trees but noted the high point is where this facility will be and there will be some light pollution from the sidewalk and parking lot lights which will filter down into the backyards of some residents. He shared Ms. Crain’s concern about the light from the sign on the 60-foot building noting the light will project and residents will see that from their properties. He noted he went to the open house and said the building looks nice, the land looks nice, they are keeping much of the area natural, but his main concern is lighting and light pollution. Mr. Stoakes commented on the lighting noting they are proposing two signs, one on the north facing Highway 5 and they would like to have that lit. The sign on the south side, which would be on the fleet garage, is a secondary sign and because it is facing a residential area, the advantage to have it lit is not there. He noted in this case the secondary sign does not have to be lit and he stated they want to be a good neighbor and not a nuisance. Commissioner Schwartz asked Ms. Crain if that sign was not illuminated would it satisfy their concern? Ms. Crain replied in the affirmative, noting it would. Chairman Noyes closed the public hearing. Mr. Generous suggested the Commissioners memorialize the condition regarding the secondary sign, noting that will also help city staff with direction in the future. Commissioner Alto moved, Commissioner Goff seconded the Chanhassen Planning Commission recommends approval of Planning Case #2023-01 Xcel Service Center, including rezoning the Planned Unit Development Office Industrial Park PUD, site plan approval for five buildings, a communication tower, and screened outdoor storage, with the agreement that any south-facing signage will not be lit, and a wetland alteration permit subject to the conditions of approval, and adopts the Findings of Fact and Recommendation. All voted in favor and the motion carried unanimously with a vote of 6 to 0. GENERAL BUSINESS: None. APPROVAL OF PLANNING COMMISSION MINUTES DATED MARCH 7, 2023: Commissioner Goff noted the summary Minutes of the Planning Commission meeting dated March 7, 2023 as presented. ADJOURNMENT: Planning Commission Minutes – March 21, 2023 8 Commissioner Johnson moved to adjourn the meeting, Commissioner Soller seconded. All voted in favor and the motion carried unanimously with a vote of 6 to 0. The Planning Commission meeting was adjourned at 9:00 p.m. OPEN DISCUSSION Submitted by Eric Maass Planning Director