H-4. Discussion of CUP for multiple principle buildings MEMORANDUM
CITY OF To: Planning Commission
CHANHASSEN From: MacKenzie Walters, Assistant Planner
7700 Market Boulevard Date: August 16, 2016
PO Box 147
Chanhassen,MN 55317
Subject: CUP for Multiple Principle Buildings
Administration Issue
Phone:952.227.1100
Fax:952.227.1110
City Code permits multiple buildings on one lot by Conditional Use Permit(CUP)
Building Inspections with only general criteria listed to evaluate the development. This can lead to an
Phone:952.227.1180 increased burden on public infrastructure, especially if the use for one or more of the
Fax:952.227.1190 buildings changes after the CUP is issued.
Engineering Examples
Phone:952.227.1160
Fax:952.227.1170
800 78`h Street W: Lunds &Byerly's and FedEx Office Print& Ship Center share a
Finance single parcel zoned Central Business District. Without a CUP the parcel would have
Phone:952.227.1140 been subdivided to place the FedEX Office and Print& Ship Center on its own lot.
Fax:952.227.1110
8200 Audubon Rd: AutoMotorPlex has ten buildings located on a single parcel. Nine
Park&Recreation of those are for automobile storage and one is a clubhouse/museum. Without a CUP
Phone:952.227.1120
Fax:952.227.1110 this development would have required a subdivision,planned unit development
(PUD), or common interest community plat(CIC).
Recreation Center
2310 Coulter Boulevard Background
Phone:952.227.1400
Fax:952.227.1404 Section 20-902 of the City Code states that multiple principle buildings may be
Planning& allowed by CUP in nonresidential zones. There are no specific criteria established for
Natural Resources this type of CUP so it is governed by the general issuance standards contained in
Phone:952.227.1130 Section 20-232. These criteria stipulate that the CUP should be granted if it will not
Fax:952.227.1110 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
Public Works built to accommodate it, and will not degrade the natural or built environment. In
7901 Park Place order to deny a CUP, the city must find that it is not in line with these criteria.
Phone:952.227.1300
Fax:952.227.1310
Senior Center
Phone:952.227.1125
Fax:952.227.1110
Website
www.ci.chanhassen.mn.us
Chanhassen is a Community for Life-Providing for Today and Planning for Tomorrow
Planning Commission
Issue Paper—CUP for Multiple Principle Buildings
August 16,2016
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 principle buildings in non-
residential districts may do so by requesting a CUP or creating a PUD or CIC. It
should be noted that grouping multiple buildings on one lot is treated differently than
having multiple uses/tenants in a single building, which is generally allowed without
a CUP, PUD, CIC, or variance.
KFS Cities Relevant CUP requirements and imposable conditions
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 principle
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 principle buildings stipulated by district.
Elk River: Section 30-654 Consistent with comprehensive plan, will not negatively
impact the general welfare, and can be supported by existing infrastructure. Section
30-655 can impose conditions needed to provide utilities, minimize impact on
infrastructure, and mitigate disruption of surrounding land use. Section 30-792 allows
multiple structures in PUDs or with public hearing,recommendation of plan
commission, and council approval.
Planning Commission
Issue Paper—CUP for Multiple Principle Buildings
August 16,2016
Page 3 of 6
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 principle 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 principle 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.
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 principle
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 need 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 principle
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 principle buildings stipulated
by district.
Analysis
Allowing properties to have multiple principle 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
Planning Commission
Issue Paper—CUP for Multiple Principle Buildings
August 16,2016
Page 4 of 6
usable area being lost to setbacks, and prevents the arbitrary connecting of buildings,
but it also lead 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 principle buildings on lots. These cities tend
to limit the number of principle structures in residential districts, but their codes are
silent on the number of principle buildings which can be constructed in other districts.
Of the four cities that have a general provision stipulating that only one principle
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
Issue Paper—CUP for Multiple Principle Buildings
August 16,2016
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 principle 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 as allowed by the district regulations. If buildings change
from a low intensity use, like warehousing,to a higher intensity use, like an indoor
health and recreation club, it can place unforeseen demands on the area's
infrastructure and create new conflicts with the surrounding properties.
Finally, staff examined numerous developments throughout Chanhassen and could
not find one that would not have been possible without a CUP for multiple buildings.
Most projects in Chanhassen that locate multiple buildings on a single parcel are
either CICs or PUDs. In several cases,properties that initially requested a multiple
building CUP ultimately decided to become CICs. The few projects we found that
have a CUP for multiple buildings could have been developed utilizing a CIC, PUD,
or the city's subdivision process.
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 principle building per lot for all
zoning districts. This would require any parcel wishing to have multiple
principle buildings to either be a PUD, CIC, or seek a variance.
3) Add subsection listing additional criteria and conditions for Multiple Principle
Buildings. Criteria and criteria could be established governing the amount of
intensification that could be allowed by a CUP for multiple principle
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.
Planning Commission
Issue Paper—CUP for Multiple Principle Buildings
August 16,2016
Page 6 of 6
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.
Recommendation
Alternative two would remove a seldom used and redundant mechanic from the city's
Ordinance. Relatively few developers have requested a CUP for multiple buildings,
and these developments all could have been accomplished either through the
subdivision, CIC, or PUD processes.
Staff is requesting direction from the Planning Commission on how best to address
this concern.
Attachments
Full Text of Chanhassen City Code Section20-902 and Section 20-231 to 20-237.
G:plan\city code\issue paper\multiple buildings cup\issue paper multiple buildings CUP criteria