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09.19.2023 Planning CommissionCHANHASSEN PLANNING COMMISSION REGULAR MEETING MINUTES SEPTEMBER 19, 2023 CALL TO ORDER: Chair Noyes called the meeting to order at 6:00 p.m. MEMBERS PRESENT: Chair Eric Noyes, Perry Schwartz, Edward Goff, Steve Jobe, Erik Johnson. MEMBERS ABSENT: Kelsey Alto, Ryan Soller STAFF PRESENT: Eric Maass, Planning Director; Rachel Arsenault, Assistant Planner PUBLIC PRESENT: Nick Asta Judy Harder PUBLIC HEARINGS: 1. CENTRAL BUSINESS DISTRICT CITY CODE UPDATE Planning Director Eric Maass gave a summary of the Central Business District City Code Update. This update was first presented at the September 5, 2023 Planning Commission meeting. Mr. Maass highlighted the changes since that meeting, including the intent statement, the permitted uses regarding government services, and multi-family housing requirements to include commercial space. The accessory uses eliminated the antenna towers statement as advised by the Planning Commission. Mr. Maass explained the build-to zone requirements. Commissioner Schwartz asked if there was a conflict with multi-family housing with respect to underage children who would occupy the housing that would be near a facility serving liquor. Mr. Maass stated access would be restricted still as if it was a stand-alone building, so he did not foresee it being an issue with this ordinance. Commissioner Schwartz stated some cities restrict locations of bars or other adult entertainment in proximity to schools. Mr. Maass stated there is a buffer requirement for gun ranges and adult entertainment, but it does not include restaurants with a liquor license. Commissioner Schwartz asked for the definition of high-quality architecture. Mr. Maass stated high-quality architecture in terms of downtown design guidelines would be defined as primary and secondary materials and certain percentages of requirements in usage. Commissioner Schwartz asked if the architectural standards would be of a similar color palate and design style. Mr. Maass stated the design would be cohesive but not identical. Planning Commission Minutes – September 19, 2023 2 Chair Noyes asked if this design requirement would be determined in advance. Mr. Maass stated the ordinances would dictate standards , but ordinances can also change over time. Commissioner Schwartz stated we tabled the Zupa’s restaurant because of the design requirements for the Central Business District. Commissioner Schwartz asked how this would apply to franchises with design standards. Mr. Maass stated the city ordinance would ask to see certain requirements based on the ordinance but would seek to find common ground while still applying City Code. Commissioner Goff requested to change the acronym CBD for Central Business District to a different acronym. Chair Noyes agreed with Commissioner Goff but would like to defer to Mr. Maass’ team to create a different terminology. Mr. Maass stated the name for the downtown zoning district could be revised so that the acronym would no longer be “CBD” which could cause confusion and that staff would work to revise the zoning district name in the coming months. Commissioner Goff moved, Chair Noyes seconded, that the Chanhassen Planning Commission recommends the downtown zoning district name be updated so that the resulting acronym for the district is not CBD . All voted in favor and the motion carried unanimously with a vote of 5 to 0. Commissioner Goff asked about secondary roadways in the Central Business District. He stated there were restrictions on the secondary roadways regarding building opportunities. He asked Mr. Maass to share insight here. Mr. Maass stated the greatest restrictions were on the primary roadways, where the secondary roadways create less restrictions for the development plans. Commissioner Goff clarified his question, explaining other downtowns do not restrict secondary roadways. Mr. Maass explained certain secondary roads are no longer included, such as Chan View. Commissioner Johnson echoed the concerns of Commissioner Goff, as there is a large area facing restrictions. Commissioner Johnson stated restrictions in certain areas do not seem as if they are part of downtown. Commissioner Schwartz asked where the cut-off for downtown should be. Commissioner Johnson stated the cut off should be one block from the primary roadways. Chair Noyes asked if the City Code is encouraging development. Mr. Maass stated the concerns Commissioner Johnson stated are welcomed. Mr. Maass stated the setback requirements could be relaxed in different zones as needed. Mr. Maass stated the policy and ordinance seeks to encourage developments to meet certain standards. Commissioner Schwartz asked for an example of the setbacks in reference to the Target building in Downtown West. Mr. Maass provided examples such as including a door or rotating the building to front the street rather than the parking lot. Commissioner Schwartz asked if Target desired to add a door on the wall that faces West 78th Street if that would confirm to the design vision. Mr. Maass confirmed that it would.. Planning Commission Minutes – September 19, 2023 3 Commissioner Goff asked how a building typically seen occupied by a chain restaurant like a Jersey Mike’s would be impacted by this ordinance. Mr. Maass stated the building would need to be moved to within the applicable build to zone which is based on the roadway the building is adjacent to. Commissioner Schwartz asked where the parking lot would be moved. Mr. Maass stated the building would be near the front of the street to prioritize pedestrian options, and the parking lot would move to the back or side of the building. These rules would only be applied to these businesses if there was redevelopment. Mr. Maass stated if there were a new building constructed, the requirements would be applied. Commissioner Schwartz asked if one of these buildings experienced a fire, would they be permitted to rebuild as-is. Mr. Maass stated if the building burnt 50% or more, it would need to meet the new ordinance requirements. Chair Noyes asked if the city would be required to inform businesses about the city policies and how they could impact insurance for these businesses. Mr. Maass stated the businesses are responsible for adhering to city policies, but the city could include these changes in a letter to the business to help inform them of changes. Commissioner Schwartz asked how the parking would be impacted by changes. Mr. Maass stated the setback requirements could still leave room for access to parking lots in the rear. Mr. Maass stated the only restrictions would be based on property allowance. Chair Noyes stated they have received letters regarding the Central Business District. He asked Mr. Maass to review the letters. Mr. Maass reviewed two separate letters included for public comment. The first letter was from a resident who attended the previous Planning Commission meeting. The resident included comments on the Central Business District plans. The second letter was from Phillips, Edison & Co., the real estate trust that owns the Lunds & Byerly shopping center. Phillips, Edison & Co. recommended keeping drive thru’s as a use within at least a portion of the CBD district as well as eliminating the maximum setback for the rear and side lot lines. The city took into consideration and applied in the proposed Update the removal of maximum setbacks for rear and side lot lines. Commissioner Schwartz commented that many individuals enjoy drive-throughs and questioned whether it was appropriate for the city to negate these desires. Mr. Maass stated there is a demand in the marketplace to have a drive-through, but these will be located outside of the downtown area. Instead, these drive-throughs will be in areas with increased traffic flow capacity. Mr. Maass stated this City Code update could restrict certain franchises if their business model necessitates a drive thru. Commissioner Schwartz asked if the city would work with a franchisee who was interested in economic development that desired a drive-through to find a permittable location within the city. Mr. Maass indicated that yes, City Staff work with interested parties to find a space in the city for them which adheres to the city’s code of ordinances. Chair Noyes stated the Phillips, Edison & Co. letter recommended allowing drive-throughs in Downtown West. Chair Noyes questioned whether Café Zupas was at a point of leverage at this point. Chair Noyes opened the public hearing. There were no public comments. Planning Commission Minutes – September 19, 2023 4 Chair Noyes closed the public hearing. Commissioner Goff asked if we should vote on this current City Code update or if it is too big. Commissioner Johnson stated he would consider changing the build-to zones on secondary roadways. Chair Noyes stated if there were ideas to differentiate district locations, we could consider this option. Chair Noyes stated much of the districts are already fully developed. This City Code would be incremental as property developers see opportunities for economic gain. Chair Noyes commented that we are retrofitting the downtown area, so these will be small changes over time. Chair Noyes said there needs to be an economic driver for companies to make investments in building changes. Commissioner Schwartz asked what the next steps were tonight. Planning Director Maass stated the Planning Commission would make a recommendation and the City Code would move to the City Council. Commissioner Goff questioned different setback options for secondary roadways that the City staff have considered. Mr. Maass stated if we want to relax the build-to zone, they could consider 40-foot to 50-foot setbacks at the secondary roadways. He commented that the build-to zones need to function together still. Chair Noyes asked where the Downtown West and Downtown Mixed Use are adjacent, which is at the east side of Target. Commissioner Goff stated this code update is our first take, but changes may occur in the future. Commissioner Goff moved, Commissioner Johnson seconded that the Chanhassen Planning Commission recommends recommend the City Council approve the Central Business District Update City Code as presented subject to the conditions of approval and adopt the Findings of Fact and Decision. All voted in favor and the motion carried unanimously with a vote of 5 to 0. Planning Director Maass introduced the new associate City Planner Rachael Arsenault to the Commission. Ms. Arsenault shared her previous experience and stated she is excited for this new opportunity. APPROVAL OF MINUTES: 1. APPROVAL OF PLANNING COMMISSION MINUTES DATED SEPTEMBER 5, 2023 Commissioner Schwartz noted the summary Minutes of the Planning Commission meeting dated September 25, 2023 as presented. COMMISSION PRESENTATIONS: None. Planning Commission Minutes – September 19, 2023 5 ADMINISTRATIVE PRESENTATIONS: None. CORRESPONDENCE DISCUSSION: None. ADJOURNMENT: Commissioner Johnson moved to adjourn the meeting. All voted in favor and the motion carried unanimously with a vote of 5 to 0. The Planning Commission meeting was adjourned at 7:02 p.m. Submitted by Eric Maass Planning Director