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PC 02.20.2024CHANHASSEN PLANNING COMMISSION REGULAR MEETING MINUTES FEBRUARY 20, 2024 CALL TO ORDER: Chair Noyes called the meeting to order at 6:00 p.m. MEMBERS PRESENT: Chair Eric Noyes, Erik Johnson, Kelsey Alto, Perry Schwartz, Ryan Soller, Edward Goff, Steve Jobe. MEMBERS ABSENT: None. STAFF PRESENT: Eric Maass, Planning Director; Erik Henricksen, Project Engineer, Rachel Arsenault, Associate Planner, Rachel Jeske, Planner, Samantha DiMaggio, Economic Development Manager. PUBLIC PRESENT: Nick Asta, Roers Companies 2 Carlson Parkway, Plymouth Bob Loken, ESG Architects 500 Washington Ave S, Minneapolis Marty Schutrop 540 Lakota Lane Paul Theis 6020 White Dove Circle Thomas Wilmer 517 Del Rio Drive Mark Frisbie 7460 Longview Circle Andrew Klinkner 7606 Kiowa Avenue Debbie Lloyd 7302 Laredo Drive Mark Engebretson 7605 Iroquois Street Ann Jeske 506 West 76th Street Judy Harder 541 W 78th Street Connie Hatton 8018 Eric Avenue Leah Olson 2034 Stone Creek Drive Liz Williams 7611 Kiowa Avenue Jim Gunville 7608 Kiowa Avenue Joan (Joanie) Demeter 8203 Marsh Drive Janet Paulson 7305 Laredo Drive Charlie Littfin 7609 Laredo Drive Linda Paulson 7603 Frontier Trail PUBLIC HEARINGS: 1. PROPOSED PRELIMINARY PLAT, SITE PLAN, AND VARIANCE REQUEST FOR MARKET STREET ADDITION; REDEVELOPMENT OF THE CHANHASSEN CINEMA AND HOTEL (PLANNING CASE 24-01) Planning Commission Minutes – February 20, 2024 2 Eric Maass, Planning Director, gave a summary of the staff report, noting the applicant is requesting preliminary plat, site plan, and a variance to the build to zone for the construction of two mixed use buildings totaling 310 market-rate apartment units and approximately 14,882 square feet of leasable commercial space. Mr. Maass explained that Roers Companies has applied to redevelop approximately four acres of property near the intersection of West 78th Street and Market Boulevard. The four acres proposed consist of the Country Inn & Suites and the now-closed Chanhassen Cinema. The plans submitted for the redevelopment include two buildings, which would include about 14,000 square feet of first-floor commercial space to be used for restaurants, retail, or additional commercial services. Mr. Maass noted the upper stories would consist of approximately 310 market-rate apartments and amenity decks. The buildings themselves have a variety of building heights, including areas that are one, two, five, and six stories in height. The project would include approximately 408 structured underground parking stalls as well as surface parking to support residential and commercial uses. He shared architectural and landscape plans, and site renderings. Mr. Maass noted that in addition to the subdivision, site plan, and variance requests, the applicant has submitted a request to the city for Tax Increment Financing (TIF). Part of the review process for that request is the City's Planning Commission reviewing the TIF Plan for conformance to the City's Comprehensive Plan as it relates to land use. The TIF plan outlines the proposed redevelopment of the site into a vertical mixed-use development consisting of both commercial space as well as residential uses which does align with the City's Comprehensive Plan guidance for the parcels in question. Mr. Maass stated that staff recommends adopting the resolution finding the Tax Increment Financing plan for District 13 is consistent with the City’s Comprehensive Plan. Commissioner Schwartz asked how the architectural color palette compares to the Civic Campus. Mr. Maass believes the two are complementary and shared about the earth-tones and black accents with a modern and timeless type of architectural presence. Commissioner Schwartz recalls that the Laredo Drive extension would dogleg on to Market Street. Mr. Maass clarified that at some point it will continue south, but only at the time the property owner decides to do something with the property. Commissioner Schwartz asked about the benefits of a green roof. Mr. Maass replied a green roof helps meet planting requirements and storm water requirements, as well as cooling of the building. Commissioner Goff asked if the architecture clashes with the apartments above Aldi. Planning Commission Minutes – February 20, 2024 3 Mr. Maass does not think they clash and noted that building is not seen as the architectural model to be emulated throughout the community. He thinks it works with the building but does not use it as a model from which to create a twin. Commissioner Goff asked regarding the easement, with the Chanhassen Business District (CBD) and wanting to have things up against the street, what are the options? Mr. Maass replied at this point the city has exhausted all options and are trying to work with Aldi for a vacation of a portion of that drive access easement. At this point Aldi is unwilling to do so as it is a private easement. He noted Aldi finds value for their shoppers to be able to utilize both intersections. Chair Noyes asked how the mural sizing compares to the existing mural? Mr. Maass does not know the answer at this point, but noted on the elevation it is a 26-foot wall and that the proposed mural location depicted takes up nearly the entire height of that wall. Commissioner Soller clarified the two primary decisions are 1) granting the single variance on the west side of the building along Market Boulevard and 2) making sure TIF District 13 is consistent with the Chanhassen Comprehensive Plan. He asked how the TIF District is consistent with the Comprehensive Plan. Mr. Maass explained the TIF plan outlined the proposed redevelopment into a vertical mixed-use building with market-rate apartments above and commercial below. The City’s Comprehensive Plan for the Central Business District is for increased residential density and increased commercial opportunities. For those reasons, staff is supportive. Nick Asta of Roers Companies shared about his firm noting they have worked with staff for many months and are very excited about the project. He emphasized their priority in public art, walking trails, trees and greenspace which are all front of mind in this project. Chair Noyes asked about the timeline to completion. Mr. Asta noted they would start construction at the beginning of Quarter 3 in July/August and is about a 20-month construction period for each building, which would occur in tandem. He noted it would be about 24 months start-to-finish. Commissioner Schwartz asked about plans for sustainable construction, solar energy, and electric vehicle chargers. Bob Loken, ESG Architects, shared that apartment buildings are inherently more energy- efficient than standalone homes. He noted their commitment to performing a complete energy model on these buildings and will look at all assemblies and mechanical systems together to show where to put increased insulation. He spoke about window-to-wall ratio, 10% of all Planning Commission Minutes – February 20, 2024 4 enclosed parking stalls having an Electric Vehicle (EV) charger with future capacity of up to 20%, and the green roof compliance with the watershed’s storm water requirements. Commissioner Schwartz asked about solar panels on the roof of the building. Mr. Loken noted solar panels can be difficult on buildings like these due to the roof needing venting for plumbing vents and there is less available space for the efficient use of solar panels. He noted many times they will make buildings “solar ready” with conduit to the roof and pull cables for the future and making sure roof trusses are designed to accommodate that future load. He noted that typically the roof space available on an apartment building can supply 2-4% of the electrical load of the building. He also shared that the mural size on the east side is the exact same size as the existing mural and the west side is a bit larger. Commissioner Jobe asked if the city would have first right to purchase the building should it become an asset on the open market, because it is an intricate part of downtown Chanhassen. Mr. Maass noted the city would not have first right-of-refusal, but the portion of the outlot on the Laredo Drive extension would be deeded to the city. Chair Noyes opened the public hearing. Marty Schutrop, 540 Lakota Lane, has lived in Chanhassen for 30 years and in looking at the plan he asked, where is the small town feel? He noted opening a Pandora’s Box like this will lead to every small retail shop becoming an apartment building and it will look like Uptown. He stated it is ridiculous that the city would allow that on a small town main street. There is no reason they could not put this outside of the city off the main street. He has developed small properties and noted it seems like more work to split off one lot than it would to get this project approved. Mr. Schutrop said Chanhassen is billed as a small town and this is not a small town project and will bring people in that are not family-oriented but transient with year-to-year leases and no investment into the community. He asked the Commissioners to reconsider allowing this project. Joanie Demeter, 8203 Marsh Drive, thinks the portion of the presentation regarding roads and engineering was glossed over. As a 35-year resident there are many places within the city with much congestion and she thinks the engineering department could do a much better job of helping residents navigate through the city. In her opinion, more detail needs to be added. Ms. Demeter asked what percent of the 310 dwellings will help people who cannot afford the market- rate? Chair Noyes stated these are market-rate apartments and are not designed for a low-income population. Ms. Demeter asked if there is an expectation that the city helps people who cannot afford to live in these dwellings? Planning Commission Minutes – February 20, 2024 5 Chair Noyes replied there is an expectation on a citywide basis, but it is not tied into this particular project. There are other lower-rent options for people within the city. Ms. Demeter asked about the engineering of the roads to accommodate the influx of residents? Mr. Maass explained the purpose of a public hearing is not to have a back-and-forth but rather a forum for continuous public comment. Following the public hearing, the Commissioners may follow-up with questions for staff. Paul Theis, 6020 White Dove Circle, noted he had trouble hearing and did not hear what the variance request would be. He spoke about a questionnaire that went out regarding the new City Hall campus noting the highest vote at 45% was that the residents did not want a “closed-in” feel to the city with high-rises. He noted regarding the TIF, if the apartments will be market-rate the developer can pay for that and they do not have to take away taxes from the city. Mr. Theis does not think they need to rush into this project and he spoke about storm water, the area being in a low spot, and potential flooding. He posed the question about whether this is the type of community they want. Liz Williams, 7611 Kiowa Avenue, does environmental health and safety, noting she has two students in the district, aged 10 and 12, and lives one block from Chanhassen Elementary. She noted she ducks cars back-and-forth and advocated not only looking at the main campus, but with future development, and redevelopment to bring people into the park, the infrastructure, traffic, and activities. She noted the reason she moved here 11 years ago is because of the cute little downtown. Ms. Williams noted she does not like the concrete, noting the high-rise increases the noise, and while she could hear crickets at night, since Venue went up that noise has been bouncing off the highway and it is harder to hear that nature. With two high-rise buildings, it will make the noise bounce back-and-forth, and with fans evacuating the underground parking that will also be noisy. Ms. Williams noted continuing to add impervious surfaces will increase the heat island and bring more storms to the area. She spoke about the recharge from the aquifer and runoff, and spoke about a Roers Companies project in Milwaukee where trichloroethylene (TCE), a dry-cleaner solvent, was found and the property was contaminated. She noted it was settled for $25,000 per resident, but people in the building had those vapors coming up through the building. That liability and the people living there is open for cancer and Ms. Williams’ concern with the company is the liability and financial ability to continue maintaining this building at this height. Ms. Williams spoke about the use of fiberboard cement, which is about 50% silica, and when the material is cut the silica goes airborne. She noted there are people that will be living there that will be exposed to that. Regarding parking, Ms. Williams loves the idea of people biking and ride-sharing, but given how far out Chanhassen is, people will still need transportation. Ms. Williams spoke about the soil and if it is contaminated and not fully remediated, it will get into the storm water and go back up through the vapor system. Ms. Williams likes the boulevard and the fact that they have grass and trees on each side, she loves the 4th of July parade, and if this project has to go through, she asked to keep it at a maximum of three stories. Thomas Wilmer, 517 Del Rio Drive, finds it odd that the timing of the moratorium and preliminary redevelopment plan is the same day. He noted he also thinks the project is a couple Planning Commission Minutes – February 20, 2024 6 of floors too large and without any options of ownership so people can be personally involved in the community. He spoke about a Zuppa Cucina that was killed off by not “fitting the vision of Chanhassen” and he asked how that can happen alongside Chick-Fil-A doubling its drive- through capacity in a few weeks. He does not believe these items are coincidences. Mr. Wilmer noted the impact on roadways with additional 400-500 parking spots in the area, noting coming and going will be difficult and asked if it can handle that kind of traffic flow and congestion. Regarding septic and water with all of the additional bathrooms and sinks and asked how that will be handled and whether existing facilities can process that flow and waste. Mr. Williams asked where additional space will come for West 78th Street to make it broader, wider, and maintain the green space. He shared about a 20% maximum of EV charging stations noting they are altering the vehicle capability of the facility. He asked if there has been a tax revenue estimate with 80% occupancy. Linda Paulson, 7603 Frontier Trail, used to live in Wisconsin and moved to Chanhassen for a number of good reasons. She spoke about safety noting on February 1 in the Chanhassen Villager there was a wonderful article on retiring Fire Chief Don Johnson, who indicated in 2014 when Chief Johnson started they had 600 calls and nine years later they had 1,300 calls. Ms. Paulson noted Carver County is the fastest-growing in the State of Minnesota and with even more growth comes transportation of people and all the amenities, building, staff, etc. At a meeting the previous week, she noted a presentation about roads and reducing West 78th Street to one lane east/west, reduce the median, add some turn lanes, and parallel parking. She asked how they would respond to fires and major incidents with only one fire house a block away from City Hall and this huge development. Ms. Paulson spoke about traffic flow, and being stuck in that area depending on traffic light patterns and wonders how the city will respond to a family on the other side of town whose home is burning. She is asking them to work together to think about the fire response times that may go up, and the quaintness of the city becoming a tall tunnel. Ms. Paulson stated three stories is fine, but six stories is not. She spoke about public information regarding a development in Milwaukee, The Community Within The Corridor, which was a former industrial site. The company present tonight, as well as three minor developers developed a building, and there was TCE in the soil as previously mentioned. As read in the Milwaukee Journal Sentinel, she noted on March 25, 2023, 150 people were evacuated from the building and the company offered them each $5,000 and no further lawsuits with a 7-day time limit to sign. Other public information noted on April 2, 2023 said that the state could prosecute the developers, and on June 19, information regarding paying tenants to end leases. Ms. Paulson shared about the DNR notifying the developers regarding a vapor mitigation system to vent the TCE, and that the Wisconsin Economic Development and Housing Association gave $19.7 million to develop, a TIF for $3.15 million, and $17.43 million from the federal government. She also noted the developers were granted a $750,000 environmental clean-up loan. Ms. Paulson is not asserting that the soil in Chanhassen is bad; however, it is good to know this public information in dealing with developers. She spoke about the 21 tenants who did not take the $5,000 payoff who were each given $25,000 and still have the right to sue for health issues in the future. Ms. Paulson asked the Commissioners to consider whether they want to preserve the attraction of Chanhassen to be one of the best cities to live in or whether they will just become a tunnel city with skyscrapers. Planning Commission Minutes – February 20, 2024 7 Leah Olson, 2034 Stone Creek Drive, grew up in Chanhassen, noting when she would come back from college she would see new things being added each year, including a cookie-cutter neighborhood on Prince’s land, the farmlands across from the studio becoming warehouse office space, and now Prince’s mural is also being destroyed. She thinks this is quite disheartening and she asked about the process of getting word out to the community as she and many friends had not heard about this project until a few weeks previous or had no idea this was happening. She spoke about getting communication out to a younger audience including using social media to receive responses. Ms. Olson shared about the Chanhassen Cinema, theater trends coming back after Covid, and she noted that the urban sprawl cannot really be stopped but poses the question about whether the Chanhassen Cinema needs to be demolished or if there are adaptive reuse options. She asked about the research of community feedback, theater trends, and into the need of retail spaces within Chanhassen as some have said they are becoming “Chainhassen.” Mark Frisbie, 7460 Longview Circle, works at the Country Inn and Suites and noted Chanhassen needs a good hotel in that same location. He spoke about the importance of the location of Chanhassen noting the Chanhassen Dinner Theater brings in guests all year from surrounding states and communities. On a full weekend there are at least 250 guests spending their money in Chanhassen. Local businesses also rely on a good quality hotel for employees coming in from all over the world. Due to the local wedding venues that have popped up in the area, the hotel is booked many weekends and he asked where those guests will stay? The Country Inn and Suites is a three story hotel which is a pretty impressive size visually. Mr. Frisbie asked them to imagine another two stories on top of that noting that is a massive building and is too large for this community. Debbie Lloyd, 7302 Laredo Drive, noted her ride out of town will be greatly impacted by a development of this size. She spoke about a memo from HKGI in the packet and noted the opening paragraph states “shared parking in this district is beneficial to reduce the amount of parking needed by allowing spaces to be used by multiple users at different times.” Ms. Lloyd noted it would be beneficial for Roers Companies to share parking with others, but will not be beneficial to Kraus-Anderson who has all the other parking that is currently shared. When they want to come in and develop they will have a bigger burden of parking to deal with. In the same memo, it speaks about city’s zoning code requiring 1.5 spaces per unit, yet a 1.38 spaces per unit ratio was used. Ms. Lloyd noted the calculation of 496 parking spaces falls 42 spaces short of the zoning code requirement. She believes that should be a variance in the report. She noted the city has waited a long time and stated “let’s do it right.” She spoke about the extension of Laredo Drive noting the short stretch going to West 78th Street and asked them to imagine how many cars could stack up there, as there is one in and one out, which is not sufficient for the number of units. She spoke about the congestion from schools, the fire station safety issue, post office, and thinks traffic should be studied before it is presented to the public. Regarding walkability, she has to laugh, as it would be meandering through and looking up at a six-story building. Ms. Lloyd noted this is not the Chanhassen she wants to stay in. She contacted the artist Mr. G, who came from New Zealand on his own dime to paint the Prince mural, and he replied that if they commission him, and fly him over, he will come back and create a powerful new concept. Jim Gunville, 7608 Kiowa Avenue, read the documents in the packet and asked if it is correct on the east building with around 120 apartments there were 60 parking spaces below. He noted that Planning Commission Minutes – February 20, 2024 8 is not even one car space per unit, and where it said another 60 spaces will be available outside, he asked where that parking will be? Mr. Gunville did not realize the extension to Laredo is like a long driveway and there is a barrier there. Parking will be in front or behind the building to get to the apartment building. Having enough parking is a great concern to Mr. Gunville and he asked the Commissioners to please look at it again. Regarding the vision of Chanhassen, he stated the openness and ability to see something off in the distance is very valuable, and a six- story building will prevent some of the things that makes the community what it is. Regarding an earlier comment about a hotel, Mr. Gunville agrees noting it is amazing how much traffic the hotel brings into town and the city needs to be able to support people coming into Chanhassen. He noted development is fine and this is a nice plan, but Mr. Gunville does not think it is a plan for Chanhassen. He asked the Commissioners to think about how people will be able to maneuver in the area, the height, traffic, visibility, and feel, and whether it is a place people will want to be or they will want to get out. Andrew Klinkner, 7606 Kiowa Avenue, asked whether this is the best solution for this space, noting he thinks the hotel and movie theater space can become better. Having a hotel near the dinner theater is needed as it brings a lot of people to town, noting when he travels all over the world and mentions Chanhassen people talk about the Chanhassen Dinner Theater and Prince. Possibly forcing the developer to allow some sort of ownership in the buildings could be very useful with people putting down roots here. Regarding parking capacity, he noted they are not at full capacity right now and it is already kind-of crazy around there so he wonders what that will be like. He asked if there has been a study done on requests or permits for commercial spots in town and noted Wayzata still has commercial spaces open 10 years after the Promenade redevelopment. He agrees the plan and buildings are beautiful and remembers a meeting with boards showing potential options and people could put red stickers (bad idea) and green stickers (good idea). He would like to see those boards again and believes the five- and six-story boards had a lot of red stickers on them. He asked how this development benefits the people who live here, noting the city was named number one for a reason, or whether it benefits Roers Companies and those who would move into the apartments. He does think the city needs more population density but does not think it needs to happen right in that location. Mark Engebretson, 7605 Iroquois Street, noted since moving here for the small town feel in 2015 he has noticed a lot of changes, and stated he was disappointed when Venue was built. After hearing about this development, he shared his disappointment with communication and timing, noting he got a postcard in the mail. Mr. Engebretson stated the public this evening has not come up clapping and being excited about this development. People like the quaint, small-town feel of Chanhassen and he noted the importance of the hotel for out-of-town family to stay in. He agrees with previous comments that this is not right for the city. Regarding traffic, Mr. Engebretson would love to see an animation of current traffic versus adding hundreds more cars. He does not think seeing high-rises is good for Chanhassen, and if people wanted that, they would have moved to Uptown. He does not like the tall buildings in Victoria and feels sorry for the city. He asked if they offer market-rate apartments in the building, is the TIF something the developer needs to get, and why do the citizens have to lose out of potential tax revenue for the city? If the apartments were low-income or subsidized, he would be in favor of some kind tax benefits for the developer but not with full market-rate. Mr. Engebretson stated the Venue was a bad idea and a six-story building is 10 times as bad. He can deal with having a three-story hotel, but not Planning Commission Minutes – February 20, 2024 9 having two buildings next to each other that are six or seven stories. He would like to see research that this is the best option for the city. He asked the Commissioners to try to make concessions on height of the building, traffic, and making it better for Chanhassen, noting the government is here for the people and not the developers. Ann Jeske, 506 West 76th Street, noted recently she was assessed about $5,000 for a road and she wonders why Roers Companies, who are very wealthy and do well, are getting TIF money. It does not make sense to give TIF money to very profitable developers who are making decisions and the public is coming in afterwards telling how they feel when a decision has already been made. She feels “shame on you” that the public was not more involved, there was not more communication, noting this is a huge bottleneck for anyone living south of Lotus Lake, noting the high amount of traffic to get in and out of the area. Ms. Jeske understands the need for density and multiple types of housing, but noted this is not the location. She suggested the density could be added coming in on Highway 5 but not in a very dense area where they are already struggling with traffic. Many residents enjoy the city and wide-open spaces but are now being taxed for new roads for people coming into the city who do not even have ownership. She asked the Commissioners to reconsider the location noting many people in Chanhassen will not be happy. Charlie Littfin, 7609 Laredo Drive, lives across from an elementary school and noted that road is busy enough already and they do not need 500 more cars in that area. He stated this is already a done-deal and he has seen enough go down in this town to know that it has already been decided and he asked how long this has been in the works? By the time the residents heard about Venue it was already three years in and was already a done-deal. He remembers a meeting like this when they were already picking paint colors for the apartments by the time people heard about it. Mr. Littfin has seen it his whole life in this town, that if people have money, they can come in and do whatever they want. He noted this is not the town that he wants to live in and if it goes through it will be one more step for him to leave because it is not the small town that it used to be. Debbie Lloyd, 7302 Laredo Drive, believes a variance is required for the parking and must be put in the packet that goes to Council. Therefore, she thinks it would mean the Commissioners must prove a variance on that tonight and the packet needs to be revised. She noted minimum standards were not met in her opinion. Judy Harder, 541 W 78th Street, lives in the Venue apartments and wants to speak up for herself, noting good people are moving in there. Chair Noyes closed the public hearing. Chair Noyes asked Mr. Maass to show the slide regarding the public communications related to this project. He noted communication began in early January and there has been a valiant attempt to communicate with people. He noted the city would love to hear feedback regarding the types of communications put forth on projects like this. He clarified the city has a Comprehensive Plan that prescribes what land-use is and zoning for the city. The job of the Planning Commission is to make sure that any proposals meet what is prescribed in the Comprehensive Plan and the Planning Commission Minutes – February 20, 2024 10 ordinances that support it. Some changes were made regarding the Central Business District and what buildings should look like, with retail mixed in with residential, and those discussions went on for months. If people do not like the blueprint, there are ways to change it through the Planning Commission. He wants the Commissioners to keep that in mind with all the great opinions from residents and must be tied-in. Commissioner Soller noted the strategy for the city has already been set and the job of this Commission is to say whether this fits within that strategy or not. It is not in their purview to change the strategy. If people disagree with the strategy they must hold this Commission and elected officials to account. Commissioner Alto spoke regarding strains on sewer and water noting it is not just the city that decides the Comprehensive Plan, but the Met Council who oversees all metropolitan areas. They determine how much volume every plot of land in the city should have based on projections of waste and water. She grew up in Chanhassen and chose to return and rent for 15 years. She stated that she added value to the community and renters are not just transient people looking to come only for a year. Commissioner Alto noted many of them live here long-term and add value to the community. She spoke about the Economic Development Commission, the Planning Commission, and loves that everyone came to offer feedback tonight, which does not always happen. She encouraged the public to sign up for the newsletter to read the packets and agendas, and to continue to put pressure on the city regarding communication. Commissioner Schwartz is concerned that many of the comments regarding communication are one-sided and the burden is solely upon the city to communicate. He suggests it is a two-way street and the citizens and the city need to do a better job of communicating. The burden cannot solely be on the city’s shoulders and noted the city works hard to communicate to people and if people do not subscribe to the bulletins or look at the website that is not the city’s fault. People must take part and get involved in their government and if they did so, they would have known about the project and been more prepared to share their thoughts this evening. Commissioner Schwartz noted once a Comprehensive Plan is in place, a property owner can do whatever they want to with their property as long as it conforms to the ordinances. If it does not conform, they can come to the Planning Commission and request a variance. Property laws always favor the property owner and in this case if the developer is making a request that conforms to the Comprehensive Plan and zoning ordinances, they can ask for a variance and the Planning Commission recommends to the City Council whether to approve the variance or not. He encouraged everyone to get more involved in the city. Commissioner Goff spoke about multiple meetings and open houses held to put together a vision for downtown Chanhassen Business District. It was talked about, reviewed, and feedback was received. He noted Roers Companies has come in with a proposal that meets most of it and the city is following the rules put forth. On whether it is a “done-deal,” if they follow the rules put forth and they own the land, then they can build it. Commissioner Alto asked about the narrowing of West 78th Street, and if that is part of the approval tonight. Planning Commission Minutes – February 20, 2024 11 Mr. Maass replied road designs of public roads are the purview of the city through a road planning project. Specifically to the proposal before them this evening, no, it has no purview for anything that occurs within the right-of-way for West 78th Street or Market Boulevard. He noted the City Council is discussing a reconstruction of Market Boulevard and weighing options for what the future of the roads could look like. He said any length-to-length reconstruction of West 78th Street is many years out. Project Engineer Erik Henricksen spoke about the public input process on roadways, with open conversations with residents on needs and wants. The extension of West 78th Street was looked at with the lens of future planning of what could be possible with more of a complete street design which incorporates bike users, pedestrians, all to accommodate the downtown vision. Regarding the increase of volume in this development, with existing uses compared to proposed use, analysis found a reduction in daily volumes created. Commissioner Alto asked about the traffic study and parking standards and how adding apartments, shopping, and a restaurant would decrease the traffic capacity coming through. Mr. Henricksen shared about traffic counts, peak volumes, and the use of calculations to anticipate traffic volumes. Commissioner Alto asked about the parking calculation of 1.3 versus 1.5 spaces per unit. Mr. Maass noted the city’s zoning code has a basis and the parking study looked at empirical standards, averaging it, and looking at what would be generated by an average vertical mixed-use building. Chair Noyes believes the study also took into account the demand for parking spaces at Venue. Mr. Maass replied in the affirmative. In looking at parking at the rear of the Venue, it has been at or above 95% occupancy with a total of 135 surface spots in the rear. Staff’s observations is that there is ample capacity in that surface lot without taking into account the Southwest Transit Ramp which is not proposed as part of the parking allocation for this project. Staff did recommend increasing the easement from 20 spots to 50 spots to allow additional parking for the east building. Commissioner Soller clarified the requirements by city standards are being met. Mr. Maass explained part of the code that talks about mixed-use buildings and parking shall be determined by the city based on existing and potential uses of that building. Therein lies the ability for the city to conduct a parking study to determine the number of spots required for the project in place of the standard requirements. Commissioner Soller asked if those are the grounds on which a variance in this case would not be required. Mr. Maass replied in the affirmative. Planning Commission Minutes – February 20, 2024 12 Commissioner Alto spoke about previous conversations about the downtown vision and not having West 78th Street as the “main drag” for Chanhassen and instead looked at Laredo as an alternative. She noted this project does not lend itself in going that direction as proposed with garage ramp exits located just past a stoplight but she does not know what the traffic consequences or alternatives would be. Mr. Maass replied the intention is that West 78th Street evolves into the main street. Laredo is an extension of that with the same ideals of pedestrian walkability, shopping, and residences. With garages coming off Laredo, it is the lower-class road and the alternative would be coming off West 78th Street, which is not preferred. Commissioner Schwartz asked if the city is planning to narrow West 78th Street and the median between east and west. Mr. Maass replied the city is not proposing to reduce the right-of-way width. The city is contemplating the Market Boulevard reconstruction and making sure there are adequate turn lanes, through lanes, and when a future project comes for West 78th Street. The City Council is considering what happens east of Kerber Boulevard and Great Plains Boulevard. Commissioner Schwartz asked with whatever happens east of Kerber Boulevard heading south on Laredo, will there be room for vehicle traffic to accommodate a fire truck to access West 78th Street. Mr. Maass replied the engineering department is working closely with the fire department in potential design alternatives for West 78th Street. They want to continue to support the 4th of July parade route and noted the way the city designs a street is a different discussion as Roers Companies has no bearing on that item. Commissioner Soller asked about runoff and impervious space and clarified it does not increase impervious space that much and it is being mitigated by the requirements of the project. Mr. Maass replied in the affirmative noting the applicant is required to go through city permitting and Riley Purgatory Bluff Creek Watershed District which is one of the more difficult and strict districts in the State. The stormwater generated for the site will be accounted for. Commissioner Soller asked if the city has ever commissioned a noise pollution study for the area and asked if that need to happen in the future to ensure quality of life and standards are being met in Chanhassen? Mr. Maass replied the city has not commissioned a noise study, noting a study is typically generated as a result of large infrastructure, such as highway projects, to determine whether sound walls are necessary. Planning Commission Minutes – February 20, 2024 13 Commissioner Jobe asked about the cisterns in the middle of the road and would the city be responsible for the maintenance and upkeep of those if a structural failure occurred, and how common is that scenario. Mr. Maass replied the operations and maintenance agreement would dictate that Roers Companies would own and maintain the system. In the future if the road extended and there was a solution to the stormwater treatment, that system could be abandoned, but that would be at the city’s discretion. Commissioner Goff asked if this is the only time the Planning Commission will see this project. Mr. Maass replied at this point, unless the Planning Commission tables, this would be the only time they would see the project. Commissioner Schwartz asked if the Venue is being used as a precedent for another six-story building in downtown Chanhassen. Mr. Maass hesitates to use the word precedent, and during the design guidelines conversation they heard a lot of feedback that it is tall enough and people would like even less. That is the reason behind the establishment of the height maximum within the current ordinance. Commissioner Schwartz recalled previous conversations about not becoming like Eden Prairie with building heights of six stories or higher, but noted that now seems to be the standard and there is no challenge to that on the part of staff. Mr. Maass noted six stories is the standard wood-frame construction, and in terms of comparison to Eden Prairie, he goes back to the desire in the city’s architectural guidelines in that buildings don’t change material just to change material and he does not believe the project before the Commissioners does that. Commissioner Schwartz thinks there should be a discussion amongst the Commissioners regarding the old, small-village look and feel of Chanhassen and how that is being transformed. Commissioner Alto noted they had that discussion in September when they discussed the design guidelines. They talked about maximum height and what the Commission would require if they were going to allow six stories. She noted it was shopping on the first floor, a 10-foot setback, and stated it is already approved and in the code because of those discussions. She clarified being on the Planning Commission has helped to understand the rights of property owners to do what is within code. Commissioner Soller likes the suggested action in the packet that breaks this into two motions. He is not sure he has heard enough to confidently vote on the second action yet. Several questions came up from the public such as if this is market-rate, and a profitable project, why does the city need to do a TIF. Or, if this site is valuable and profitable, does the city need to give that advantage to a developer, maybe there would be a competitor that comes in without a TIF. Planning Commission Minutes – February 20, 2024 14 Chair Noyes clarified regarding TIF, the Commissioners are contemplating whether this TIF plan is consistent with the Chanhassen Comprehensive Plan. They are not voting on whether the developer should get TIF, whether they deserve TIF, or how much the TIF should be. He noted it is within the structure, and while one could argue whether they should get any money, it is a completely different conversation and outside the purview of the Planning Commission. Commissioner Alto asked if there is a place that discussion happens where the public can provide their input on those decisions before it comes to the Planning Commission. Mr. Maass replied on March 11, the City Council is scheduled to have a public hearing with respect to the TIF. The City Council is the designated Economic Development Authority and they would approve or deny a TIF request. Chair Noyes spoke about the cinema and the hotel and noted he would like them to stay, as well, but they are private businesses and the decision has been made to close the cinema. He noted the City of Chanhassen is not going to get into the movie theater or hotel business. Commissioner Soller noted a lot of the write-in feedback surrounded the mural, and it is a historically and culturally significant site. If the original artist was willing to come back, he encouraged the city to consider that heavily. It is a shame to see history paved over. Chair Noyes stated the Commissioners do not vote on this based on whether they think it is a good project. They vote on whether it complies with the ordinances and plans the city has put in place. A member of the public asked about West 78th Street and widening the road. Mr. Maass explained West 78th Street is a mixture of 80- and 100-foot right-of-way currently. With the traffic study, the city looked at whether additional right-of-way is necessary, and the engineering department has reviewed that with the traffic study and deemed it not necessary. He noted the city is not boxing itself in. Commissioner Soller moved, Commissioner Alto seconded that the Chanhassen Board of Appeals and Adjustments approve the requested build to zone variance and adopt the findings of fact and decision. All voted in favor and the motion carried unanimously with a vote of 7 to 0. Commissioner Alto moved, Commissioner Jobe seconded that the Chanhassen Planning Commission recommends approval of the requested preliminary plat and site plan contingent upon compliance with the city staff review memo and adopt a resolution finding the TIF plan for TIF district number 13 is consistent with the City of Chanhassen’s Comprehensive Plan. All voted in favor and the motion carried unanimously with a vote of 7 to 0. GENERAL BUSINESS: None. Planning Commission Minutes – February 20, 2024 15 APPROVAL OF MINUTES: 1. APPROVE PLANNING COMMISSION MEETING MINUTES DATED JANUARY 16, 2024 Commissioner Goff moved, Commissioner Jobe seconded to approve the Chanhassen Planning Commission summary minutes dated January 16, 2024 as presented. All voted in favor, and the motion carried unanimously with a vote of 7 to 0. COMMMISSION PRESENTATIONS: None. ADMINISTRATIVE PRESENTATIONS: None. CORRESPONDENCE DISCUSSION: None. ADJOURNMENT: Commissioner Alto moved, Commissioner Soller seconded to adjourn the meeting. All voted in favor and the motion carried unanimously with a vote of 7 to 0. The Planning Commission meeting was adjourned at 9:00 p.m. Submitted by Eric Maass Planning Director