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CC 2017 07 10 CHANHASSEN CITY COUNCIL REGULAR MEETING JULY 10, 2017 Mayor Laufenburger called the meeting to order at 7:00 p.m. The meeting was opened with the Pledge to the Flag. COUNCIL MEMBERS PRESENT: Mayor Laufenburger, Councilman McDonald, Councilwoman Tjornhom, Councilwoman Ryan, and Councilman Campion STAFF PRESENT: Todd Gerhardt, Chelsea Petersen, Paul Oehme, Kate Aanenson, Adam Beers, and Roger Knutson PUBLIC PRESENT: B. Boudreau-Landis 960 Saddlebrook Joanie Demeter 8203 Marsh Drive Brian Harstad Rosemount Inc. Joel Jenkins 7305 Frontier Trail Steve Stamy 491 Bighorn John Klinkenberg 83 Castle Ridge Court Michelle Smith 7487 Saratoga Circle Jeff Commander 7307 Frontier Trail Tom Kersten 7402 Laredo Drive Michelle Christopher 7300 Laredo Drive Stephanie Schwarz 7420 Longview Circle Joanna Poinar 7303 Laredo Drive Donna Levy 7299 Laredo Drive Leo Hofmeister 8622 Flamingo Drive Ron Kramer 1022 Pontiac Lane Jeff Hahn 622 Summerfield Drive Jeff Gustafson 212 Lakeview Road E. J.P. Meyer 94490 River Rock Mike Madden 4212 Abbott Avenue So. Chris Barns 6751 Brule Circle Greg Fletcher 7616 South Shore Dire Steve Donen 7341 Frontier Trail Jan Lash 9455 River Rock Drive So. Andrew Hiscox 7500 Erie Avenue Brad Johnson 8922 Essex Road Mayor Laufenburger: Welcome to this council meeting, to those of you that are present in the chamber as well as those of you that may be watching on Mediacom cable TV or through our Chanhassen City Council – July 10, 2017 livestream from our website. Nice to have you with us this evening. For those of you that are watching online we have probably 60 people here in the council chambers. And also for the record note that all the council members are present this evening. First council members regarding the agenda. Our first action is, are there any modifications to the agenda that you would like to make at this time? If not then we will proceed with the agenda as it’s printed. Yes. Mr. Campion what’s your modification? Councilman Campion: I propose that we move the Venue/Aldi item ahead of the Avienda item on the agenda. Mayor Laufenburger: And why is that? Councilman Campion: Just based on the volume of traffic and comments that we’ve seen on the item I thought it’d be beneficial if people in the audience are here for that, for it to appear a little bit earlier in the night. Mayor Laufenburger: Okay, I take that as a motion. Is there a second to that? Councilwoman Ryan: Second. Mayor Laufenburger: Okay. Any further discussion? Councilman McDonald: Mr. Mayor could you repeat the motion? Mayor Laufenburger: The motion is to make the Venue/Aldi item, item number G-2, make that G-1 and make the Avienda item G-2. Is that correct Mr. Campion? Councilman Campion: That’s correct. Mayor Laufenburger: Okay. Any discussion? Councilman Campion moved, Councilwoman Ryan seconded to amend the agenda to move the Venue/Aldi item to G-1 and Avienda to G-2. All voted in favor, except for Mayor Laufenburger and Councilwoman Tjornhom who opposed and the motion carried with a vote of 3 to 2. Mayor Laufenburger: Motion carries. We’ll move that item to number 1. Avienda will then be number 2. Okay any other modifications to the agenda? PUBLIC ANNOUNCEMENTS: None. CONSENT AGENDA: 2 Chanhassen City Council – July 10, 2017 Mayor Laufenburger: Is there any item on the consent agenda you would like to remove? Council. Mr. Campion. Councilman Campion: Mr. Mayor, I’d like to move to cover item D-8 separately from the consent agenda. Mayor Laufenburger: Okay. Also item D-9, the Arbor Glen, the developer has asked to remove that from the agenda for tonight and bring it up later so any other modifications to the consent agenda? Alright we will take up that item number D-8 immediately following the approval of the consent agenda. Is that acceptable? Actually I’m going to do it right after visitor presentations Mr. Campion okay? Councilwoman Tjornhom: Actually Mr. Mayor? Mayor Laufenburger: Go ahead. Councilwoman Tjornhom: Because of the important business that we do have tonight could we move that to the last item of business so we can have enough time, quality time to discuss the other items that we have? Mayor Laufenburger: Good suggestion councilmember, so we will move item D-8 to just prior to council presentations. Anything else to come off the consent agenda? Alright then I would entertain a motion to approve consent agenda items D-1, 2, 4, 5, and 10. CONSENT AGENDA: Councilman McDonald moved, Councilwoman Tjornhom seconded to approve the following consent agenda items pursuant to the City Manager’s recommendations: 1. Approve City Council Minutes dated June 26, 2017 2. Receive Planning Commission Minutes dated June 20, 2017 3. Item Deleted. 4. Foxwood: Approve Maintenance Agreement with Riley-Purgatory-Bluff Creek watershed district. 5. Resolution #2017-44: State Highway 101: Approve Resolution of Support for State Bonding Request. 6. Item Deleted. 7. Item Deleted. 3 Chanhassen City Council – July 10, 2017 8. Item moved to G-3. 9. Item Deleted by Developer. 10. Resolution #2017-45: Approve Resolution Accepting Donation of Park Benches from Chanhassen Lions Club. All voted in favor and the motion carried unanimously with a vote of 5 to 0. VISITOR PRESENTATIONS. None. PUBLIC HEARING: AUTHORIZE APPLICATION TO THE MINNESOTA DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT (DEED) FOR A $450,000 GRANT UNDER THE MINNESOTA INVESTMENT FUND (MIF) PROGRAM TO ASSIST WITH THE EXPANSION OF ROSEMOUNT, INC., A SUBSIDIARY OF EMERSON ELECTRIC CO. Mayor Laufenburger: Is there a staff report please? Chelsea is this your’s? Chelsea Petersen: Yes sir. Mayor Laufenburger: Alright. Chelsea Petersen: Alright before us tonight we have an application to Minnesota DEED, the Department of Employment and Economic Development for funds under the Minnesota Investment Fund and the Job Creation Fund. Just a very, very brief amount on the company itself because the applicant is here to speak. So they plan to invest roughly $14 million dollars to rehab the Chanhassen facility which is one of three that they have in the state. They’re looking to optimize the office and manufacturing space which will create 80 new jobs and the project is expected to begin later this year and hopefully completed by 2020. The Job Creation Fund provides awards and rebates to businesses that create and retain permanent jobs which they plan to do. The current project is eligible for up to $850,000 in assistance provided that the City supports the project and it is an allowed use which the current use is permitted in that zoning district. All that’s required of the City Council is, or all that’s requested of the City Council excuse me is a resolution of support. This fund is a pay for performance fund and all of the funding comes through DEED and because of the large amount DEED will be holding a public hearing later on this year. The Minnesota Investment Fund is one that would be routed through the City. Again no city funds would go into this. It’s strictly DEED funds. The current project is eligible for up to $450,000 so we will be holding the public hearing this evening. And again that money comes from DEED to the City and then it is given to Emerson Rosemount upon proof of purchase for qualifying expenses. Funds are forgiven ultimately if the project and all the expenses, or the loan is forgiven assuming all of the requirements are met and eligible 4 Chanhassen City Council – July 10, 2017 expenses are provided with proof and there is collateral required on behalf of the applicant Emerson Rosemount. I do have the motion here. The applicant is present and would like to speak a little bit more about their business and their project. Mayor Laufenburger: Okay. Thank you Ms. Petersen. First of all any questions of council for staff? Okay. Just to clarify Ms. Petersen, we make the application. The funds are issued to us. We pass those funds through to Rosemount Emerson and as long as they show that they hire the people that they say they would then they get the full amount of the funds, is that correct? Chelsea Petersen: That’s correct. The Minnesota Investment Fund passes through the City. The Job Creation Fund goes straight from DEED to the business. Mayor Laufenburger: Okay, alrighty. Chelsea Petersen: And all of it is, sorry. Mayor Laufenburger: Okay if the applicant is present tonight we’d like to hear a little bit about the project. State your name please. Brian Harstad: Yep. My name’s Brian Harstad. I’m the VP of Finance for Rosemount’s North America operations that are headquartered here in Chanhassen. Mayor Laufenburger: Welcome Brian. Nice to have you here. Brian Harstad: Alright, thank you Mr. Mayor, members of the council. Yeah we’re happy to be here tonight. I appreciate the few minutes on your agenda. Mostly appreciate really the 30 yeas partnership that we’ve had with the community here. We built our building in 1990 and have had a great history of working with the community here providing great employment and we’re looking to continue that well into the future. If I could pull up those, yeah it’s right here. So our business here in Minnesota is part of Emerson. Most of locally here know us by Rosemount but Emerson is our overall business. Very broad global business manufacturing and technology leader around both the US and abroad. Our products serve the process industry so we provide instrumentation that’s critical to the safety and efficient running of our customers plants. Our business here is part of what we now call the automation solutions group so that’s a group of businesses together with the Rosemount products that serve that process industry. We’re about two-thirds of Emerson overall and the Rosemount products and our North America business is headquartered here in Chanhassen. Over the past several years we’ve been working on projects in each of our 3 buildings. We’ve renovated our Eden Prairie facility a few years back. We purchased and completed a new facility in Shakopee and now we’re looking at our 30 year old Chan facility and looking to improve that and bring that really up to today’s needs. As we look at our industries that we serve, the last couple years some of these industries have had a pretty tough time with the oil and gas markets and some of the energy segments but the outlook that we see is pretty favorable over the next 2 to 3 years and we think well into the future beyond that so 5 Chanhassen City Council – July 10, 2017 this is really driving the need for some increased capacity as well as we continue to look for opportunities to centralize and bring some businesses together in our larger facilities like Chanhassen. So our project today is focused on renovating the east end of the Chan facility. Today that’s mostly offices and we’re going to convert about two-thirds of that space into high tech manufacturing space. That will give us the capacity we need to support the growth we see as well as do some additional consolidation of operations. We have some product lines spread around the world frankly that we’re looking to bring together here in Chanhassen. That activity then together with the market growth we think will provide some good job growth again in Minnesota and that will be centralized here as we build out Chanhassen. So we’re looking for your continued support of that and be open to any questions that you might have. Mayor Laufenburger: Thank you Mr. Harstad. Any questions from council to Brian? Councilwoman Tjornhom. Councilwoman Tjornhom: With these funds that the City will be receiving to disperse to you is there a time limit for how long? Brian Harstad: There is. I think it’s about 3 years. It’s based on when the final application and the whole process is finished. Basically we’ll do the largest part of the construction work in the next 6 to 8 months. Most of the job hiring will then be tied to that expanded space and the equipment production lines will build out over the next couple of years to fill up that space and take on more business. So I forget the exact timing but I think it’s about a 3 year timeline so we have to meet a job commitment and a capital spending commitment to the State during that time. Councilwoman Tjornhom: Okay thank you. Mayor Laufenburger: Do you, based on your expiration of this grant are you reasonably confident that the grant will be made Mr. Harstad? Brian Harstad: Yep we’ve gotten preliminary assurance from the State. We’ve got our preliminary approval within the company to move forward with the project providing everything comes together with the State over the next few weeks. Mayor Laufenburger: Great, and part of this is adding approximately 80 jobs. Brian Harstad: Yep and for the State of Minnesota they measure it really on our total Minnesota employment. Mayor Laufenburger: And that’s the 200 jobs you’re thinking. Brian Harstad: Yeah so we think long term we have as much as 200. We’re committing to at least 80 jobs and that will be based on the project here in Chanhassen. 6 Chanhassen City Council – July 10, 2017 Mayor Laufenburger: Can you just remind us how many employees you have here in Chanhassen? Brian Harstad: We have about 2,100 employees between our 3 facilities. Chan is still the largest today about 900 currently. Mayor Laufenburger: Very well, very well. Any other questions of Mr. Harstad? Okay. This is a public hearing. Thank you very much. Brian Harstad: Thank you. Mayor Laufenburger: This is a public hearing so at this time I would like to open the public hearing. If there’s anybody present in the council chambers that would like to speak regarding this application and more importantly the resolution that City Council is presented with, now would be a good time to do it. There being none I will close the public hearing and bring it back to the council for discussion and a motion. Councilwoman Ryan: Mr. Mayor? Mayor Laufenburger: Councilmember Ryan, yes. Councilwoman Ryan: I’d like to make a motion please. Mayor Laufenburger: Please do. Councilwoman Ryan: I’d like to make the motion that the City Council adopts the attached resolutions and authorizes the application for funds available through the Minnesota Department of Employment and Economic Development, Minnesota Investment Fund and Job Creation Fund programs. Mayor Laufenburger: Very well. We have a valid motion. Is there a second? Councilman McDonald: Second. Councilman Campion: Second. Mayor Laufenburger: Thank you Mr. McDonald. Any further discussion? Councilwoman Ryan moved, Councilman McDonald seconded that the City Council adopts Resolution 2017-46: Resolution Regarding the Support of a Job Creation Fund Application in Connection with Rosemount, Inc., a Subsidiary of Emerson Electric Company; and Resolution #2017-47: Resolution Regarding the Support of a Minnesota Investment Fund Application to the Department of Employment and Economic Development in Connection 7 Chanhassen City Council – July 10, 2017 with Rosemount, Inc., a Subsidiary of Emerson Electric Company; and authorizes the application for funds available through the Minnesota Department of Employment and Economic Development, Minnesota Investment Fund and Job Creation Fund programs. All voted in favor and the motion carried unanimously with a vote of 5 to 0. Mayor Laufenburger: Mr. Harstad, best of luck to you. We look forward to seeing your continued partnership with the City of Chanhassen. And by the way you do a good job of supporting our activities here in Chanhassen as well and it’s good to see your name. Emerson or Rosemount, either one so. Brian Harstad: Thank you. Mayor Laufenburger: Thank you very much. Thank you Ms. Petersen. Is that resolution available for me to sign or will I do that tomorrow? Chelsea Petersen: We’ll have that for you tomorrow. Mayor Laufenburger: Okay, thank you. WEST PARK: A. APPROVE REZONING FROM RSF AND PUD TO PUD-RESIDENTIAL, PRELIMINARY PLAT, SITE PLAN, AND A VARIANCE FOR AN 82 UNIT TOWNHOME DEVELOPMENT AND APPROVE SUMMARY ORDINANCE. B. PUBLIC HEARING: VACATION OF PUBLIC DRAINAGE AND UTILITY EASEMENT. Mayor Laufenburger: Staff report please. Is this your’s Ms. Aanenson? Alright thank you. Before you begin that, there’s some people standing. You’re certainly welcome to come in. There’s some chairs over here if you’d like to come in and, I give you permission to walk in front of others while you’re doing that. Thank you very much. Ms. Aanenson. Kate Aanenson: Thank you. Thank you Mayor, members of the City Council. This request is th West Park. It went before the Planning Commission on June 20 and the applicant is Pulte Homes. Paul Heuer is here with his engineer and then owner Brian Klingelhutz and, I did see Brian in the back of the room so. The request is actually a number of, to make this project happen there’s a number of requests involved. A rezoning and a PUD ordinance. Site plan review. A subdivision. A variance setback and vacation of drainage and utility easements. So when this item went to the Planning Commission and the public hearing was held some of the members of the public raised concerns regarding the setback of the PUD and then also the amount of density. So the staff is kind of going to go back and tell a little bit more of the story of how we got to this project in and of itself. I know the applicant did have a neighborhood 8 Chanhassen City Council – July 10, 2017 meeting and maybe not all the questions were answered but we’ll spend a little bit more time reviewing how we got to this project today. So again the subject site is on, off of Great Plains Boulevard, Waters Edge and just south of the Lake Susan Drive extension. So in looking at this property back in 2008 when all this area was in flux, let me just, so a little bit more about the conditions excuse me. The barn is on the property. The Klingelhutz family farm and then we also have the Gateway apartment building there. So this goes back to when we in 2008 when all this property was in flux and looking at the land use in the area, there was concern about the rapid change with 212 coming through. People on Lake Susan Drive concerned about traffic potentially going down their street. What would happen with the Kwik Trip and the park and ride, how would that impact the area so we worked with a consultant and we went through all the specific properties and identified some land uses. In looking at the property one of the issues that was raised by the Klingelhutz family was the concern regarding this medium density. As you recall we recently approved that for the Mission Hills Assisted Living Senior Housing project. When we looked at this entire area one of the recommendations was the underlying family, the Klingelhutz family wanted to keep that commercial. They really felt strongly about that but when 212 came through the actual commercial moved south where the Kwik Trip is today. So they were reluctant to have that. One of the discussions we had was talking about some potential higher density there so we were pleased that we found a good transition between the Mission Hills and the senior housing. But that left this other piece that the Klingelhutz family owned that had 3 different zoning on it. So over the years with that land use mix we met with a lot of different developers and that’s the story we probably didn’t clearly state at the Planning Commission and some of the projects, while they met the intent we felt didn’t meet, based on those meetings we had in 2008 what we heard from the neighborhood. So if you look at this project there’s a lot of driveways along the perimeter and coming out on Waters Edge so those were twin homes but they also had a lot of driveways so we looked at also had 93 units so we felt like this did not meet the goal. While it spread the density out it also created a lot more traffic patterns along Waters Edge Drive. So this property again is butted between a state highway 101 and then the Waters Edge Drive which is a dead end cul-de-sac. One of the other projects we looked at again the family looking at trying to stay with the senior housing. Maybe the same developer moving across the street or other people also interested in senior housing so we had a proposal for a senior housing unit at that time trying to save the barn and using that for a recreation facility and there was a lot of talk with the City. Whether or not the City wanted it. The parks and rec department that didn’t want to use it as that. We were concerned about if the, who would operate it. The senior coop, would they be the operator. How would it run? How would it fit into the neighborhood and so the staff felt again that this didn’t meet it again with the additional 70 parking stalls. So our goal again going back to looking at what we believe was the intent of the neighborhood meetings that we had back so one of the goals when we started working with Pulte on this project was looking at how this project fit into the surrounding neighborhood. This is in the shoreland district so there is height and open space requirements when you do a PUD in the shoreland district so that was some of the impediments as you recall. It also affected the senior housing project across the street where we had to meet the height requirements there so it was a really challenging piece and I know the Klingelhutz family have worked on this for a number of years to try to get the right project to land on this site. So 9 Chanhassen City Council – July 10, 2017 working with Pulte Homes and what we felt a project that met the goals. Not putting all the density on the higher end. Averaging that density out to less than the medium density height or density requirements. We felt that this met what we heard from the neighborhood at the time so all the driveways or the garages are internal so there’s no driveways going out except for the access points. You have a homeowners association. It’s overall balanced. Again the density’s not pushed into one area and then also they picked up the southern piece so it’s all a nice PUD. All included instead of leaving a remnant piece to come back later so in the staff’s opinion we thought this was the best proposal we had seen over the last few years and that is why we worked hard. Sharmeen Al-Jaff on our staff worked hard with Pulte Homes to get a good project and pushed them on their architecture and the like and we’re pleased with the way the project has turned out. So again the access coming off of Great Plains Boulevard or 101 would be off of Lake Susan Drive. Two points coming in and we worked with the Gateway Apartments to use that existing access to come in so it’s a nice T intersection there for great visibility and then just one access point then off of the Waters Edge Drive, again limiting the traffic there on that road. Especially with garage and a lot of people backing out so it gives you that controlled intersection so we thought was a good response to the concerns that we had. There was guest parking. Is guest parking provided in the site? Some of the concerns that the Planning Commission had. Was there enough guest parking and how would that be accommodated? Again the driveways are deep enough that we believe with the guest parking out there that it should be sufficient. The other thing as I mentioned working with the architectural standards, because this is a PUD we’re setting up PUD standards and those are a part of what you’ll be approving tonight in the PUD ordinance itself. As a part of that there’s colors, materials. I have material boards here but this drawing illustratively shows the materials being presented. In addition there is, there’ll be windows in the garages. Again we think that’s another nice element of making it aesthetically pleasing. This is a view from the back. This would be on Waters Edge Drive looking in so this would be the street coming in. So the PUD itself, we had put the buffer in there. When you’re against low density to low density, or medium to low density we believed and working with Pulte and the products that they had seen as the, they introduced this product into Plymouth. People want the additional sun room, that we felt that the variance into that setback. Again a PUD is you can set that setback as you want it but the way our ordinance is written it would require the variance and we support it based on the way the product lays out. The fact that they have the internal street connections and all the garages on that inside so this would be the most aesthetic side of the building for the neighbors to look at. Again heavily landscaped. Again one of the positives things that we liked about this project is combining all the parcels together. Is that there’ll be a nice HOA. They put a nice amenity package in there which is under the PUD ordinance. Not every ordinance requires this but the public gathering space for the association itself so that’s shown here in the fire pits. The decorative street lighting and the landscaping itself. Again trying to match the entrance that we’ve got on the other corners of the 101 and 212. So one of your actions then tonight is approving the preliminary plat and the number of lots. The private streets and the parking. That’s all part of that. There’s also a vacation with this project so the lot itself, there’s 9.8 acres. 82 lots and 8 outlots. The 82 lots will be townhouses. Outlots A and D are private streets and B, C, E and F are also open space or finding that space for the stormwater. One of the questions that came up at the neighborhood meeting was regarding the 10 Chanhassen City Council – July 10, 2017 parks so in this situation because they’re within the Park and Rec Director reviewing this with the park commission said that in the circumstance they didn’t want additional park property. That they would take the park and trail fees and no additional trails or parks because they’re within that 1 mile radius. I think there was some concerns from the neighbors raised that maybe the park, existing parks were crowded but we’re going by what the recommendation from the park commission and the park director. So the easement vacation. We’ve included both the motions in this but the easement vacation, this does require a public hearing so. Mayor Laufenburger: Ms. Aanenson let me just stop you there. Kate Aanenson: Yes. Mayor Laufenburger: Just from a procedural standpoint we’ll deal with the vacation in a separate motion because that requires a public hearing. Are you okay with that? Kate Aanenson: Yes I’ve got them all in one motion. I guess we’ve done this before where we would just open the public hearing for that specific item to talk about the vacation. Mayor Laufenburger: You’re okay with that? Kate Aanenson: Yeah that’s how we’ve got that, if that’s alright with you. Mayor Laufenburger: Oh okay. Okay. Kate Aanenson: We’ve got it in one motion. Mayor Laufenburger: Okay. We can do that. Yeah we can do that. Kate Aanenson: The reason being is you’d have to, in order to approve the plat you’d have to do the vacation first so I think it’s for us I guess to explain to you it’s kind of putting it all together. I’ll break it out separately where the public hearing would be. Mayor Laufenburger: Alright let me just check something. Kate Aanenson: Yep. Mayor Laufenburger: Mr. Knutson is it acceptable for us to have all 5 elements of the motion in a single motion following the public hearing for the vacation of utilities? Roger Knutson: Yes it is Mayor. Mayor Laufenburger: Thank you. That’s all I needed. Alright Ms. Aanenson, continue. 11 Chanhassen City Council – July 10, 2017 Kate Aanenson: Thank you. So there are easements there. As you recall when 212 got built and 101 there’s additional easements there. Right now for the vacation of the old 101 which kind of runs behind, you can see back here. That takes a number of years to get vacated so what we’re nd vacating right now is some existing easements and West Park 2 Addition and then they’ll dedicate new easements so the easement, the public hearing then is for the vacation of the easements. There’s no public hearings required for the rest of it. Those public hearings were held at the Planning Commission regarding the variance and the like so that’s the vacation and then there’ll be platting new easements. So again this is how it would look with the new easements. We talked about that for the streets. The open space. The stormwater and the like. There’ll be private streets internally. So with that the two drainage easements are at the end but at this point mayor I would suggest that you would open then the public hearing to talk about, if anybody has comments on the drainage easements. Mayor Laufenburger: Okay. Before we do that are there any questions from the council to the staff regarding the vacation of the utilities? Okay, then at this time I would like to open the public hearing specifically on the item, could you raise that up? Go to your second page. The motion. Kate Aanenson: Oh sure. This right here. It’s these two correct. Mayor Laufenburger: Okay so it’s the bottom two. Kate Aanenson: That’s correct. Mayor Laufenburger: Right so at this time I’d like to open a public hearing specifically on the vacation of public utility easements in the developer known as West Park. If there’s anybody present in the council chambers that would like to speak regarding that, now would be a good time to address the council. Alright there being none I will close the public hearing on the vacation of the utilities. Okay. Now let’s bring this back to council. Council do you have any questions on the project as presented by Ms. Aanenson? Councilmember Ryan. Councilwoman Ryan: Yes please Mayor. Just a couple clarifications just because it went, you went quickly and I know it was a lengthier conversation at the Planning Commission but in terms of the setback, the variance is 25 feet. Normally it should be 50 feet? And can you just explain is it that there, is it the sunroom addition? Is it the orientation of the townhomes? What is the need? Kate Aanenson: Sure and maybe I can let the applicant from Pulte Homes go through that in a little bit more detail if that’s okay. Councilwoman Ryan: Absolutely. 12 Chanhassen City Council – July 10, 2017 Mayor Laufenburger: Actually that might be a good idea. Let’s, if you wouldn’t mind let’s hear from the applicant and perhaps some of the questions that councilmembers have you could address them. State your name please for the record. Paul Heuer: Good evening. My name is Paul Heuer with Pulte Homes, 7500 Office Ridge Circle, Eden Prairie, Minnesota 55344. Mayor Laufenburger: We have office space available in Chanhassen too Mr. Heuer. Paul Heuer: We just leased a new spot, sorry about that. Mayor Laufenburger: Nice to have you here Paul. Tell us a little bit about your project. Paul Heuer: Thank you. Pulte Homes is a fairly large builder. We build about 500 homes a year. We’re really well known for our floorplans. We actually build entire homes and rooms in warehouses across the country and we pay people to go through them and get their comments so through that process over a couple decades we’ve gotten to have really good floorplans with innovations that we hear people like. In our vision for this particular new neighborhood is to have something near your local conveniences. In this case it would be the retail across the freeway. The transit station. The park just to the southwest of the site. Good trail system that’s very beautiful and also of course great school districts so what our vision was is to have something that would be medium density. That would be very fitting for up against 212, 101 and an apartment complex yet still have a sense of place and that was behind our efforts of creating a fire pit. A gathering area. Private trails that lead to the public trails around the perimeter of the site so that’s really our vision. There obviously are some constraints due to the shoreland district and the density issues so I’d like to compliment both your engineering and planning staff. From the beginning this was a very, very tricky property to figure out the best way to deal with all of the height, impervious surface issues, density issues, and kind of thread the needle and through the efforts of staff we feel we’ve been able to do that with this particular proposal. The question. The question’s escaping me. Setbacks. Setbacks. There’s a long story here, I’ll try to keep it short. Often times the origin of front setbacks is really related to the length of a driveway and being able to have cars parked in the driveway. Sometimes there are sidewalks in which case there’s a little bit more setback to make sure the cars fit in the driveway without blocking the sidewalk. I know in modern day we’ve seen a lot of cities go down to 25 foot front setbacks. In fact I think Fox Hollow recently was a 25 foot front setback so it’s pretty common and very workable. In this particular case we did work real hard to keep this neighborhood looking good. It’s very important to us not only to have floorplans that people really like to live in but to have a community that looks fantastic and if you drive around the Twin Cities and look at a number of our communities I think you’ll see that so in this particular case our goal was to show our best side outward and to keep the activity inward. When cars are coming and going there’s a lot of activity so for the folks who are living on Waters Edge Drive, if we had all the driveways on Waters Edge Drive there’d be kind of a buzz of activity there all the time so our goal was to move that activity internal which makes it also feel more like a community since it’s all 13 Chanhassen City Council – July 10, 2017 somewhat enclosed, but it also looks better from the outside. When you’re driving along 101 or Lake Susan Drive you’ll see the best side of our homes. You’ll see open space. You’ll see that we worked very hard to have the orientations of the buildings different. One of the things I hate when I drive certain communities is I see barracks. It looks like Army barracks where you have these row homes all lined up together. Same colors. Same architecture. So I think what you’ll find in this particular example of a new neighborhood and product is we have different architecture on each of the buildings. We’ll have at least 25 different color packages so they’ll all look different and the outsides, the most visible and beautiful part of our buildings will be displayed to the exterior and the beehive of activity really occurs internally. So 25 foot seemed appropriate in this case. It may surprise you to know that the apartment building on Lake Susan Drive also is 25 feet from the right-of-way and it doesn’t feel bad and that’s a tall building. These are relatively flat, two story row homes with 25 foot setbacks similar to Fox Hollow. Similar to the apartment complex. It really just fit. Councilwoman Ryan: And I appreciate the explanation. Being a builder of single family homes I’m sure you can also recognize that people that have their homes and looking out at a field is now going to be changed to townhomes, as beautiful as they are and so the concern was okay, are the homes going to be right on the road? Is it going to feel crunched for lack of better word if it’s the 25 foot setback? What kind of landscaping and buffering? Are you going to pay particular attention to that? Paul Heuer: It’s a great point. For better or worst our company is focused on doing a lot of infill developments. It makes our sales folks jobs easier and my job a little harder and they’re typically more difficult for of course the residents, for us and for you folks because it’s a big change. In this particular case we feel we’ve done the right things. Perhaps we can show the landscaping plan Kate. I brought it. So when we undertake an infill development we anticipate that there’s going to be some difficulties and some discomfort among the residents. There always are so we do make an effort to increase our landscape plan. Orientate the buildings so it’s beautiful again on the outside. In this particular case what you’re seeing is some trees preserved along here. 7 or 8 trees as I recall and these are all trees that were proposed to be planted along the buffer. The outside of Waters Edge Drive, similarly a lot of trees along here. And pretty strong buffering along here too. This does a couple things. One is we know it makes it softer for the residents to look at. More attractive. It also makes the neighborhood itself, the new neighborhood feel more enclosed and people have an instinctual feel for security. You know sometimes developers put gates around communities as an effort to make it feel secure. You can also do that with landscape. In this case we have a pretty strong buffer on the outside that makes it feel like a secure community. But also we feel this is fairly robust landscaping plan compared to what you otherwise might see. Councilwoman Ryan: Okay, thank you. And one last question if I may Mr. Mayor. The parking I know was, you had touched on it about overflow parking or guest parking. You’ll have it in, enough room in the driveway. Is there other areas for, if there are more cars than just 2 or 4? 14 Chanhassen City Council – July 10, 2017 Paul Heuer: Yeah a couple things. First of all. Mayor Laufenburger: Nann can you show us the landscape plan right? Paul Heuer: Yes thank you. Mayor Laufenburger: There you go, thank you. Paul Heuer: So a couple points about parking. Each unit will have a 2 car garage and 2 cars in the driveway. This is the first row home product that we’ve seen in the Twin Cities that you can actually have an option for a third car garage too where it’s tandem. It’s deeper. It has an option instead of a flex room or some other kind of room. In addition we have found that when people have guests over and it’s more than 2 cars in the driveway we really need to have parking lots spaced in various locations so that people again can have adequate parking. From our experience as a certain number of stalls per unit that seems to work. Most cities have a minimum requirement and that minimum requirement is typically about what we do. Sometimes we do a little bit more but we’ve seen over the decades that this works. Councilwoman Ryan: Okay great, thank you. Mayor Laufenburger: I want to speak just to the setbacks just for a second Mr. Heuer and then I’ll come to you Mr. Campion. In the Planning Commission there was discussion about a 25 foot setback but in fact the homes are set back further from Waters Edge Drive so if homes wanted to add an extension to the back, like a sunroom or a patio or something. Just can you speak to that a little bit? Paul Heuer: That’s a great point, thank you Mr. Mayor. This is seen as kind of a starter home. We just started building this new product in the city of Plymouth this year and we’ve been surprised by how many people are willing to pay the extra money for a sunroom option, which is a beautiful room but it’s been about half the buyers so we have tried to accommodate as many sunroom options as possible here and what that means is along Waters Edge, whether or not people purchase a sunroom or not the homes may be anywhere from 25 feet at the closest to 32 feet away from the right-of-way line. Mayor Laufenburger: Okay and Ms. Aanenson, this is a variance request to 25 foot setback, is that correct? Kate Aanenson: The variance is through the PUD standards. Mayor Laufenburger: Okay. Kate Aanenson: And as the applicant has talked we’ve done that in other subdivisions. It’s not that uncommon. 15 Chanhassen City Council – July 10, 2017 Mayor Laufenburger: So what would be a non-variant setback? 30 feet? 50 feet? 100 feet? Kate Aanenson: 50 feet typically. Mayor Laufenburger: Okay so in this case the builder is, the applicant is asking to change the variance on Waters Edge or is it on the entire perimeter of the property? Kate Aanenson: Correct. Mayor Laufenburger: The entire perimeter of the property at 25 foot setback. Paul Heuer: It’s written that way Mr. Mayor. Along 101 we’ve actually showing the homes 40 feet back. Mayor Laufenburger: Okay. So you’re even further back from that 25 foot setback, okay. Alright. Okay Mr. Campion you had a question. Councilman Campion: Mr. Mayor my question was pretty identical. It was along the setback variance and at the commission meeting there was talk about whether it was going from 50 feet to 25 or 30 to 25 and so I got my answer. Mayor Laufenburger: Okay good. Any other council questions of the applicant? Mr. Heuer, just can you speak a little bit to the timing? We have a north, 64 homes on the north I think and what is it 18 on the south, is that correct? What’s the timing of your, give us a plan for your buildout if you could please. Paul Heuer: Our goal is to develop the north property, a portion of it or all of it in 2017 and the south property in 2018. Mayor Laufenburger: Okay so you expect with approval you expect to be moving dirt this year. Paul Heuer: Yes. Mayor Laufenburger: Alright, okay. I just have one last question. Are you familiar with all of the documents included in the staff report and are there any areas in the staff report where you have either dispute or question or are you prepared to agree with everything in the staff report? Paul Heuer: I agree with it. Mayor Laufenburger: Okay. Perfect. Thank you Mr. Heuer. One more question if I can just, have you built homes in Chanhassen in the past? Has Pulte? 16 Chanhassen City Council – July 10, 2017 Paul Heuer: We have. Mayor Laufenburger: Okay, can you identify where you have? Paul Heuer: It’s before my time. I could point to it on a map but I don’t remember the names. And also Pulte and Centex merged in 2009 so Centex and Pulte have both built homes in your city. Mayor Laufenburger: Okay. Kate Aanenson: Arboretum Village is the one that they did. Mayor Laufenburger: Say that again? Kate Aanenson: Arboretum Village on 5 and 41. Mayor Laufenburger: Oh I live in one of those homes. I’ve been meaning to talk to you about the windows. Thank you Mr. Heuer. Paul Heuer: Thank you. Mayor Laufenburger: Councilmember Tjornhom you had a question of staff. Councilwoman Tjornhom: This site is kind of a historical site and so are we doing anything as a city or is there anything being done from the Historical Society to kind of make sure it’s marked or that it’s? Kate Aanenson: Yep, that’s a great question. So it’s not the original barn. Those questions have been brought up before. We talked about it way back when we did the 2008 study so Wendy Bjorn from the County Historical Society, we can document those but they’re not historically significant but yes it’s part of the history of Chanhassen for sure. Councilwoman Tjornhom: Okay. Kate Aanenson: And structurally they’re probably not as sound. The buildings itself but we definitely want to inventory them and put them as part of the history of the city. Councilwoman Tjornhom: Okay. And then also when it came to the landscaping they meet all the minimum requirements for trees and all of? Kate Aanenson: Yes they do. Yep. Jill Sinclair put a very detailed report in there about the types of overstory’s. Again those are the ones that give the best screening and the locations of those so they’d be on each lot and then supplemented with trees and shrubs. 17 Chanhassen City Council – July 10, 2017 Councilwoman Tjornhom: And then looking at the plat, I mean I’ve seen a lot of plats and I’m just really surprised that there isn’t a park in that and that was because of park and rec. Kate Aanenson: Correct, that’s their decision on that correct. Councilwoman Tjornhom: Okay so. Kate Aanenson: It’s in proximity. Again I think that they would say that too, right now there are a lot of different age groups looking for this type of home so it could be younger families as they indicated but also it could be empty nesters too and they have different needs and that’s something I believe that the HOA over time will look at too. If they want to convert some garden space there or something like that so that’s something that the HOA can look at too. Councilwoman Tjornhom: So in order to access a park they’ll have to cross 101? Kate Aanenson: No they can go down Lake Susan Drive too. Councilwoman Tjornhom: Okay. Mayor Laufenburger: Actually they don’t even have to go on Lake Susan Drive. There’s a park path. If you look at the south property, on the west side of the south property there’s a park path that goes straight south and then follows the barrier all the way over to Chanhassen Hills Park. Great dog walking area by the way. Councilwoman Tjornhom: Really? Okay. Todd Gerhardt: Another neighborhood Mayor that you’ve lived in? Mayor Laufenburger: That was not a Pulte home but I lived there… Kate Aanenson: Institutional knowledge. Mayor Laufenburger: Exactly. Institutional knowledge. Let’s see. Councilwoman Ryan: Mr. Mayor? Mayor Laufenburger: Councilmember Ryan. Councilwoman Ryan: To that point about the Chanhassen Hills Park, I think it was brought up in the Planning Commission about the direct, how the funds, the park dedication funds are directed and I believe Mr. Hoffman had suggested Bandimere but somebody in the neighborhood said that it should be directed towards the Chanhassen Hills Park. 18 Chanhassen City Council – July 10, 2017 Kate Aanenson: Yeah, he was informed of that. Councilwoman Ryan: Okay. And is that up for discussion or? Kate Aanenson: Well I think that’s something if, that would be something that the Park and Rec Commission would make a decision on if you wanted to give them some direction on that but we did, there was also concern about a swing that was broken so we informed him of that too in making sure that that park can accommodate some of the needs so he was aware of that. Mayor Laufenburger: Councilmember Ryan I think that the, I don’t recall what the park dedication fees are but I think it’s incumbent upon the Park and Rec Commission to review all developments and the source of funds from those developments and decide the best use of those funds for the entire city so I wouldn’t want to encumber the Park and Rec Commission to say a certain amount had to go to a certain park. Councilwoman Ryan: I just would suggest that they take a look at that for this development. Kate Aanenson: Yes. Mayor Laufenburger: I’m sure Mr. Hoffman and other members of the Park and Rec Commission may be even present tonight, or not present tonight but will review these Minutes so that they will take that action. Kate Aanenson: I guess the way I read the motion, or the way that they put their input is that there was 2 parks within a mile. Not that one should get money over the other. Just that they were in a service area. Councilwoman Ryan: Okay. Mayor Laufenburger: And the parks are different too. One is, has soccer fields. A hockey rink. Baseball fields. The other one has a baseball field and. Councilwoman Ryan: Well one just recently had a lot of investment in it and I know Chanhassen Hills Park has not had that same investment recently so when we look to the future of rehabilitating a lot of our parks I could see where this would serve that need. Kate Aanenson: We’ll pass it on. Councilwoman Ryan: Thank you. Mayor Laufenburger: Mr. Gerhardt. 19 Chanhassen City Council – July 10, 2017 Todd Gerhardt: Mayor, council we’ll talk with the Park and Rec Director and make sure that the Park and Rec Commission reviews both Bandimere and Chanhassen Hills to look at the needs. Usually get community feedback on what’s needed and what’s wanted in their neighborhood parks so most recently we did Roundhouse Park and I don’t know where Chanhassen Hills sits on you know relooking at the park but we can move it up the list. Mayor Laufenburger: Okay. Are there any questions of staff regarding this project? Any further comments or motions from the council? Councilman McDonald: Mr. Mayor. Mayor Laufenburger: Mr. McDonald. Councilman McDonald: I’ll attempt a motion. Kate Aanenson: Before you start there’s two things. I’m going to spin. Mayor Laufenburger: Well it’s. Councilwoman Tjornhom: It’s all there. Mayor Laufenburger: Yeah you’d better read the whole thing Mr. McDonald. Councilman McDonald: I was going to. Okay I’ll make a motion that the City Council recommends approval of the preliminary plat for Planning Case 17-12 for West Park as shown on the plans received May 18, 2017 subject to conditions of approval. The City Council recommends approval of the site plan for the construction of 82 townhouses for Planning Case 17-12 for West Park as shown on the plans received May 18, 2017 subject to conditions of approval. The City Council recommends approval of the variance request for Planning Case 17- 12 to allow a 25 foot setback from Waters Edge Drive, Lake Susan Drive and Highway 101 as shown on the plans received May 18, 2017 subject to conditions of approval. City Council recommends approval of ordinance and summary ordinance for publication purposes for the rezoning the property located at the southeast of Waters Edge Drive, west of Great Plains Boulevard, north of Highway 212 and bisected by Lake Susan Drive with an approximate area of 9.8 acres from Residential Single Family and Planned Unit Development to Planned Unit Development-Residential incorporating design standards. Planning Case 17-12 subject to the conditions of approval and adopts the attached Findings of Fact and Decision. City Council adopts a resolution approving the vacation of all the public drainage and utility easements on Lot 1, Block 1 of Gateway North as dedicated on the recorded plat thereof as described in Exhibit A. The City Council adopts a resolution approving the vacation of all the public drainage and utility easements on Lot 2, Block 2 and Outlot A of Gateway North as dedicated on the recorded plat thereof together with Document number 206358 as described in Exhibit A. I think that’s it. 20 Chanhassen City Council – July 10, 2017 Mayor Laufenburger: Alright. Before I ask for a second I just want to clarify one thing. Mr. Knutson, could you go back one page Kate? Okay Mr. Knutson, we are the approving body so we do not recommend for approval, is that correct? Roger Knutson: Technically the word should be replaced, recommended approvals should be replaced with approves. Mayor Laufenburger: Okay so before I ask for a second, Mr. McDonald are you okay if we strike the words recommends. Councilman McDonald: Well I guess I just misread that. Mayor Laufenburger: No you read it the way it was. Councilman McDonald: City Council approves. Mayor Laufenburger: Okay, alright. So we have a motion for approval of a number of things. Now is there a second? Councilwoman Tjornhom: Second. Councilman Campion: Second. Mayor Laufenburger: Thank you Mr. Campion. Councilman Campion: I lost a race earlier so. Mayor Laufenburger: Is there any discussion on the motions? Councilman McDonald moved, Councilman Campion seconded that the City Council approves preliminary plat for Planning Case 17-12 for West Park as shown on the plans received June 30, 2017, subject to the following conditions of approval: Engineering: 1. The existing topographic survey shall include the existing first floor elevations of nearby structures such as 8751 Waters Edge Drive and 721 Lake Susan Drive. 2. Spot elevations shall be shown at the center of proposed driveways at the curb line so the driveway grade can be verified. 3. The applicant shall work with Carver County to see if the FES from their pond outlet can be combined with the county’s culvert to eliminate the low spot adjacent to this site. 21 Chanhassen City Council – July 10, 2017 4. The plan shall show EOF locations and elevation for all basins on site. 5. Top and bottom wall elevations shall be shown on the grading plan. 6. All retaining walls shall be owned and maintained by a Homeowners Association (HOA). 7. The development plans shall call out the material of the retaining wall. The following materials are prohibited for retaining wall construction: smooth face, poured in place concrete (stamped or patterned is acceptable), masonry, railroad ties and timber. 8. As existing public utilities are located within the vacation area, the applicant shall grant a drainage and utility easement to the City concurrent to recording the vacation. 9. The applicant shall have their survey confirm location of all easements with a recent title commitment prior to final plat. 10. The retaining wall and entry monuments are proposed within drainage and utility easements. These elements require an encroachment agreement prior to their construction. 11. The private sidewalks constructed within city right-of-way require an encroachment agreement. 12. All private streets will be owned and maintained by a Homeowners Association. 13. Street lights shall be installed at the intersections with public streets. This light shall be owned by the City and maintained by MVEC (Minnesota Valley Electric Company). A $300 fee shall be collected with the development contract for electricity costs for the first year of operation. 14. The net SWMP Fee due at the time of final plat of the northern parcel is $53,237.19. 15. The net SWMP Fee due at the time of final plat of the southern parcel is $17,651.42. 16. For 64 units on the northern parcel, the sanitary partial fee is $44,224.00 and the water partial fee is $137,408.00. 17. For 18 units on the southern parcel, the sanitary partial fee is $12,438.00 and the water partial fee is $38,646.00. 18. The remaining hook-up fees will be due with the building permit at the rate in effect at that time. 22 Chanhassen City Council – July 10, 2017 19. The vertical curves shall be revised to meet the City Code standard to have the curve length be greater than the difference of the grades multiplied by 20. 20. The horizontal alignment of several horizontal curves radii do not meet requirements for a 30 mph roadway without superelevation per the MnDOT Roadway Design Manual. The applicant shall submit documentation for the design speed used for these roads and the anticipated signed speed. Speed signage shall be required. Park and Trail Conditions of Approval: 1. Full park fees in lieu of additional parkland dedication and/or trail construction shall be collected as a condition of approval for the West Park Residential Subdivision. The park fees will be collected in full at the rate in force upon final plat submission and approval. Based upon the current residential park fee rates of $3,800 per multi-family/apartment dwelling, the total park fees will be $311,600. 2. 82 units x $3,800 each. All voted in favor and the motion carried unanimously with a vote of 5 to 0. Councilman McDonald moved, Councilman Campion seconded that the City Council approves site plan for the construction of 82 townhouses for Planning Case 17-12 for West Park, as shown on the plans received June 30, 2017, subject to the following conditions of approval: Engineering: The Engineering Department recommends approval of the final plat subject to the following conditions: 1. The applicant shall submit the full SWPPP document to the City for review prior to grading on site. 2. No parking signage shall be installed at all turnarounds to keep them open for public safety access. 3. All private street signage shall comply with the Minnesota Manual on Uniform Traffic Control Devices. 4. The sidewalk and pedestrian ramps shall be constructed per the Chanhassen Standard Detail Plates. 5. All sidewalks internal to the site shall be owned and maintained by the HOA. 23 Chanhassen City Council – July 10, 2017 6. The sidewalk connection parallel to Lake Susan Drive shall be owned and maintained by the City. 7. The HOA shall be responsible for snow maintenance on sidewalks adjacent to HOA property. 8. The applicant shall revise plans to call out the size of proposed water main. 9. The applicant’s engineer shall add a column to the stormwater pipe/structure table to list the velocities of the pipes. 10. Stormwater pipe within the development shall be privately owned and maintained. 11. The storm sewer/water main crossing near CB MH 702 may be in conflict. The applicant’s engineer shall verify this when the utility profiles are drafted. 12. The applicant shall meet the minimum requirements for stormwater set forth in City Code Section 9-VII and requirements of the Riley Purgatory Bluff Creek Watershed District. 13. The applicant must obtain a permit from the Riley Purgatory Bluff Creek Watershed District prior to grading the site. 14. The applicant is responsible for obtaining permits from applicable regulatory agencies (MDH, MPCA, MnDOT, etc.) prior to construction. 15. The proposed development will exceed one (1) acre of disturbance and will, therefore, be subject to the General Permit Authorization to Discharge Stormwater Associated with Construction Activity Under the National Pollution Discharge Elimination/State Disposal System (NPDES Construction Permit). 16. Sidewalk constructed within MnDOT right-of-way may require a Limited Use Permit (LUP). 17. The plan for flared stormwater pipes that discharge into the pond, infiltration basin and right- of-way shall be modified to have non-erosive velocities (3.5-5.0 feet per second). 18. The pipe from FES 500 to OCS 501 shall be modified to have a slope of 1.00 percent or greater to prevent standing water and reduce the potential for ice damage. Building Conditions: 1. Accessibility must be provided to all portions of the development and a percentage of the units may also be required to be accessible or adaptable in accordance with Minnesota State Building Code Chapter 1341. Further information is needed to determine these requirements. 24 Chanhassen City Council – July 10, 2017 2. Buildings are required to be protected with an automatic sprinkler system. For the purposes of this requirement property lines do not constitute separate buildings. 3. The buildings will be required to be designed by an architect and engineer as determined by the Building Official. 4. The developer must submit a list of proposed street name(s) to the Fire Marshal and Building Official for review and approval prior to final plat of the property. 5. Demolition permits must be obtained before demolishing any structures on the site. Application for such permits must include hazardous substances investigation and proposed mitigation reports. 6. A final grading plan and geotechnical (soils evaluation) report must be submitted to the Inspections Division before permits will be issued. 7. Walls and projections within 5 feet of property lines are required to be of one-hour fire- resistive construction. 8. Retaining walls over four feet high require a permit and must be designed by a professional engineer. 9. Each lot must be provided with separate sewer and water services. 10. The developer and/or their agent shall meet with the Inspections Division as early as possible to discuss plan review and permit procedures. Fire Marshal: 1. A three-foot clear space must be maintained around fire hydrants. 2. Street signs (temporary allowed) shall be installed prior to building permits being issued. Fire Chief must approve signage. 3. Prior to combustible construction fire hydrants shall be made serviceable. 25 Chanhassen City Council – July 10, 2017 4. Prior to combustible home construction fire apparatus access roads capable of supporting the weight of fire apparatus shall be made serviceable. 5. Relocate the fire hydrant on Stonegate road eighty (80) feet to the west. (At the intersection of Stonegate and Stonegate) 6. On Eagle View Road add a fire hydrant between block 5 and block 6. 7. In order to avoid duplicating street names, submit new proposed street names to Fire Chief and Building Official for review and approval. Planning: 1. Approval of this site plan is contingent upon approval of the final plat for Gateway North. 2. The applicant shall enter into a site plan agreement. 3. The building shall comply with the Planned Unit Development building setback requirements. All voted in favor and the motion carried unanimously with a vote of 5 to 0. Councilman McDonald moved, Councilman Campion seconded that the City Council approves the variance request for Planning Case 17-12 to allow a 25-foot setback from Waters Edge Drive, Lake Susan Drive, and Highway 101, as shown on the plans received June 30, 2017, subject to the following conditions of approval: 1. Approval of the Variance is contingent upon approval of the Site Plan and Subdivision applications Planning Case 17-12. All voted in favor and the motion carried unanimously with a vote of 5 to 0. Councilman McDonald moved, Councilman Campion seconded that the City Council approves rezoning the property located at the southeast of Waters Edge Drive, west of Great Plains Boulevard, north of Highway 212 and bisected by Lake Susan Drive with an approximate area of 9.8 acres from Residential Single Family and Planned Unit Development to Planned Unit Development-Residential, incorporating the following design standards: 26 Chanhassen City Council – July 10, 2017 WEST PARK PUD DEVELOPMENT DESIGN STANDARDS a. Intent The purpose of this zone is to create a RESIDENTIAL PUD. The use of the PUD zone is to allow for more flexible design standards while creating a higher quality and more sensitive development. Each structure proposed for development shall proceed through site plan review based on the development standards outlined below. b. Permitted Uses  The permitted uses in this zone should be limited to four, five, and six plex complexes.  The total number of units for the entire site may not exceed 99 92 units. c. Setbacks The PUD ordinance requires setbacks from roadways and exterior property lines. The following table displays those setbacks. Boundary Building/ Parking Setbacks (feet) Highway 101 25/10 * Highway 212 25/25 Northerly Project Property Line 25/25 Westerly Project Property Line 25/20 Internal Project property lines 0 /0 Hard Surface Coverage-Residential 50 % Maximum Residential Building/Structure Height 35 or 3 stories, whichever is less * parking setbacks maybe reduced to 10 feet if full screening is provided. d. Residential Building Materials and Design Buildings and site design shall comply with design standards outlined in Article XXIII. General Supplemental Regulations, Division 9 of the Zoning Ordinance. 1. All units shall have access onto an interior private street. 2. A design palette shall be approved for the entire project. The palette shall include colors for siding, shakes, shutters, shingles, brick, stone, etc. 3. All foundation walls shall be screened by landscaping or retaining walls. 27 Chanhassen City Council – July 10, 2017 4. All adjoining units must exhibit different exterior design features and color. e. Site Landscaping and Screening The intent of this section is to improve the appearance of vehicular use areas and property abutting public rights-of-way; to require buffering between different land uses; and to protect, preserve and promote the aesthetic appeal, character and value of the surrounding neighborhoods; to promote public health and safety through the reduction of noise pollution, air pollution, visual pollution and glare. 1. The landscaping standards shall provide for screening for visual impacts associated with a given use, including but not limited to parking areas, utility boxes, unadorned building massing, etc. 2. All open spaces and non-parking lot surfaces, except for the fire pit area, shall be landscaped, rockscaped, or covered with plantings and/or lawn material. 3. Undulating berms, shall be sodded or seeded at the conclusion of grading and utility construction. The required buffer landscaping may be installed where it is deemed necessary to screen any proposed development. All required boulevard landscaping shall be sodded. 4. Native species shall be incorporated into site landscaping, whenever possible. f. Street Furnishings Benches, trash receptacles, planters and other street furnishings should be of design and materials consistent with the character of the area. Wherever possible, street furnishings should be consolidated to avoid visual clutter and facilitate pedestrian movement. g. Signage The intent of this section is to establish an effective means of communication in the development, maintain and enhance the aesthetic environment, to improve pedestrian and traffic safety, to minimize the possible adverse effect of signs on nearby public and private property, and to enable the fair and consistent enforcement of these sign regulations. It is the intent of this section, to promote the health, safety, general welfare, aesthetics, and image of the community by regulating signs that are intended to communicate to the public, and to use signs which meet the city's goals: a. Preserve and promote civic beauty, and prohibit signs which detract from this objective because of size, shape, height, location, condition, cluttering or illumination; 28 Chanhassen City Council – July 10, 2017 b. Ensure that signs do not create safety hazards; c. Ensure that signs are designed, constructed, installed and maintained in a manner that does not adversely impact public safety or unduly distract motorists; d. Preserve and protect property values; e. Ensure signs that are in proportion to the scale of, and are architecturally compatible with, the principal structures; g.1. Monument Sign: One monument sign shall be permitted at the entrances to the development off of Lake Susan Drive. These signs shall not exceed 24 square feet in sign display area nor be greater than five feet in height. These signs shall be setback a minimum of 10 feet from the property line. g.2. Sign Design and Permit Requirements: a. The sign treatment is an element of the architecture and thus should reflect the quality of the development. The signs should be consistent in color, size, and material and height throughout the development. A common theme will be introduced at the development's entrance monument and will be used throughout. b. All signs require a separate sign permit. h. Lighting 1. Lighting for the interior of the development shall be consistent throughout the development. Fixtures with decorative natural colored pole shall be used throughout the development in parking and street lighting. Decorative, pedestrian scale lighting shall be used in the fire pit area and sidewalk areas and may be used in parking lot areas. 2. Light fixtures should be kept to a pedestrian scale (12 to 18 feet). 3. All light fixtures shall be shielded. Light level for site lighting shall be no more than ½ candle at the project perimeter property line. This does not apply to street lighting. i. Residential Parking shall comply with city code requirements. All voted in favor and the motion carried unanimously with a vote of 5 to 0. Resolution #2017-48: Councilman McDonald moved, Councilman Campion seconded that the City Council adopts a resolution approving the vacation of all the public drainage and 29 Chanhassen City Council – July 10, 2017 utility easements on Lot 1, Block 1 of GATEWAY NORTH as dedicated on the recorded plat thereof as described in Exhibit A. All voted in favor and the motion carried unanimously with a vote of 5 to 0. Resolution #2017-49: Councilman McDonald moved, Councilman Campion seconded that the City Council adopts a resolution approving the vacation of all the public drainage and utility easements on Lot 2, Block 2 and Outlot A of GATEWAY NORTH as dedicated on the recorded plat thereof together with Document No. 206358 as described in Exhibit A. All voted in favor and the motion carried unanimously with a vote of 5 to 0. Councilman McDonald moved, Councilman Campion seconded that the City Council approves Planning Case 17-12 subject to the conditions of approval and adopts the attached Findings of Fact and Decision. All voted in favor and the motion carried unanimously with a vote of 5 to 0. Mayor Laufenburger: Ms. Aanenson I have a question for you. Kate Aanenson: Yes. Mayor Laufenburger: Will this item ever come back to the council again? Kate Aanenson: Yes you’ll see it at final plat and I believe the applicant’s working trying to get that on the next meeting and we’re getting towards the end of getting projects launched for construction season so you will see the plat. Mayor Laufenburger: So when the final plat comes that’s when we approve the layout, everything that would then follow with building permits, movement of dirt, etcetera. Kate Aanenson: Correct. Mayor Laufenburger: Is that correct: Kate Aanenson: Yeah it will be a site plan agreement. There probably isn’t any public improvements in this so there wouldn’t be a development contract but there would still be a site plan agreement tying them to all the conditions of approval and I’d just like to take one moment just to thank Sharmeen Al-Jaff on our staff who probably worked on this, this property probably for 6-7 years and the applicant to what we believe is a really good project for this site. Mayor Laufenburger: Okay, alright. Well thank you Mr. Heuer. Best of luck in developing your final plat. We hope to see you soon, alright. Okay. Alright thank you. VENUE/ALDI: APPROVE SITE PLAN FOR A 134 UNIT, SIX STORY APARTMENT BUILDING AND A ONE-STORY, 19,000 SQUARE FOOT RETAIL BUILDING WITH A 30 Chanhassen City Council – July 10, 2017 VARIANCE; AND PRELIMINARY APPROVAL OF A REGISTERED LAND SURVEY CREATING THREE PARCELS. Mayor Laufenburger: Let me just, I know a number of you are here to observe the proceedings tonight. Let me just explain how we, you’ve seen a little bit of what we do observing here so far but this will be the sequence of steps that I will follow tonight. First of all I will ask for a staff report. Then I will ask if there are any council questions of staff. Then I will hear from the applicant and I will ask if there’s any questions from the council to the applicant. And then I point out that we had a public hearing at the Planning Commission. The City Council has access to the Planning Commission verbatim. The video. We have in the staff report there’s a number of emails. We’ve had correspondence with many of you as citizens and I have not yet decided whether or not I will include public comment as part of this event. It’s not required but this is kind of dependent upon how much time we have and other things. Once that is done then I’ll bring it back to the council for discussion and then action by the council and then of course that would ultimately potentially mean a vote if a motion comes forward. So that’s the process we’re going to follow and I ask that you just observe and listen very respectfully as I know that you all have come to so let’s begin with the staff report. And could we close that door please. Kate Aanenson: Thank you Mayor, members of the City Council. The application is from Chanhassen Frontier LLC. It is for subdivision with a registered land survey, site plan review th with a variance. This did go to the Planning Commission on June 20. The Planning Commission did recommend approval 7 to 0 in support of it. They did have a couple questions about the project and I’m just going to go through those now so I don’t forget to bring them in with the rest of the report. The number and sufficiency of parking. The project does meet the parking requirements. There’s a question about in the front and I’ll try to circle back on that. 92-94. Truck operations. They do, are able to meet and access the truck operations for th deliveries for the Aldi’s. Bring the building closer to West 78. This is again constrained and this goes to the parking. They have enough parking on site. There’s parking in front is shared parking so the only control they have over is the parcels that are not included with the other property owners so they do have shared parking through that so they can only respond to what’s, they have control over so there are parking easements across the front of the site so they cannot move it closer because it would affect somebody else’s ability to use those parking stalls in front that they have cross access. One of the other questions about the height of the building. The highest peak of this, and I’ll try to circle back if you would remind me Mayor when we get to those drawings is 77 feet. There is an additional story that can go on the Southwest Transit building which would bring that to a total of about 55 feet. The Country Inn and Suites is at 47.5 for the top. And when I’m talking about 77 that would be the top of like the parapet or architectural feature on the apartments. And then the Chanhassen Professional Building is two story with a height of 57 feet at the top of the cupola and 44 feet at the top of the roof height so again the Planning Commission did recommend approval and I just wanted to share with you that we did follow up on the comments that they had. So the location of this request is at 525 th West 78 Street. It includes as I mentioned before 3 parcels and the 3 parcels will be creating 3 registered land survey. One for the Aldi, one for the apartments and then one for the parking. 31 Chanhassen City Council – July 10, 2017 Again the request is for the site plan review for 134 units, a six story apartment building and one story, a 19,000 square foot retail building with a variance for the existing drive aisles and widths. Again those could be altered to meet code but because of the cross access agreement we felt comfortable leaving them the way they are and did support the variance. So again the registered land survey is creating the 3 parcels out of the currently 3 parcels that are there. This application is a lot different. I know we’ve got questions about the time, how much time and why we spent so much. A PUD when you’ve got a lot of moving parts putting together an ordinance is a lot different than doing a site plan review of this caliber so what we look at here is does the, do the two uses that are being proposed meet the ordinance and do they meet the city’s standards regarding architecture and the parking standards. Landscaping requirements and the like so th landscaping for the most part is going to be on West 78 and then the parking aisles in the back so it’s a little different as far as the discretion and the control that the Planning Commission have when there’s a PUD when you ask for additional things that you would like to see. So again you’re looking at the land use. It is for commercial, this is our central business district which has the most list of uses. Residential and commercial are both permitted uses in the zoning district and again it’s zoned central business district so they are permitted in the district so there’s no discretion of changing or giving permission to request a change. So this is looking to the north. th This is West 78 and this would be the retail space right here, the 19,000 retail space and then this would be the apartment buildings on top. So underneath this will be the parking garage and I’ll show that in a minute but this is the existing parking that we’re talking about so while there’s 92 up here, the additional parking can be met in the back but there’s also cross access in front of the Country Suites so at night at the Country Suites, if they have more people then they can park over here too so those are part of the negotiations that the developer works out with the adjoining property owners so I know it was asked could the City go through and extinguish all those. Those are all private agreements. The City can only review what’s in front of the City tonight by the applicant who has demonstrated that he has, or they have worked out parking arrangements. So the, to get into the service delivery area would come up and back in and then they can go back out. The existing driveway between the movie theater and the current buildings would stay th in place. That’s for circulation there and then also access off of Market and West 78 Street. So those are things that we always talked about keeping in place for redevelopment of any site here. So this is the south view so this is looking at Market so this is on the back side of the building. Again a couple met Sharmeen Al-Jaff on our staff who worked very hard to push the design on this building and we think it’s a very attractive building. So this would be the entrance to the parking garage on the back side so all the parking for the apartments is accommodated by code and the back side of the building. Again a little bit closer detail. Again some of the things that we were looking at was the articulation of the balconies and the movements of itself so it’s not one square building. Again another perspective so this is the existing portion of the Dinner Theater building that would stay. This right here and then the entrance to the apartments and then the Aldi’s grocery store on this side over here so it’s a perspective there. Again so the Aldi’s, the 19,000 square feet and then the entrance would be, and the delivery which I just spoke of is on the west side. A question was brought up about the look of that perspective and it does drop down. We’ve worked hard to try to get some additional articulation on the one wall there looking at landscaping for buffering. I had mentioned at the Planning Commission meeting 32 Chanhassen City Council – July 10, 2017 it’s similar to when you go to Lakewinds, when you’re coming down that drive you look into that, the bay there where they load at Lakewinds which is approximately about the same size. Square foot building. If you recall the requirement there in that PUD was under 20,000 square feet and this one’s the 19,000 so as I mentioned before the top of the elevation so this is the peak in the back and that’s the one that’s at the 77 at the tall peak on the back and this is the part of the Aldi’s here which would be the driveway going back down between the buildings and back into the parking ramp. And more details on the looks of the building itself. So this is the underground parking, the 134 underground parking stalls and as I mentioned the loading dock here and then coming in on the back side of the building is how you would access that and the elevators. There is on the top side of the building a service entrance so if people wanted to th inquire about leases and the like that would also be on West 78 Street but otherwise any other guest could also enter from the rear and there’s an elevator at that point too. Again majority of the parking then would be in the back. These are the plans, I think there’s some nice amenities on the top floor that the applicant want to speak a little bit more about that but on the top floor there is a gathering place and nice views. Some of the amenities that we look for. It’s not going to be amenities in the parking lot. Again this is a much more urban feel but again on the top floor and then there’s some other amenities in the apartment building too but I’ll let them talk a little bit more about that. Again the landscaping plan is on the perimeter and which is what we would require and the developer the perimeter and then the landscape islands which we require in all parking lots. So they do meet those requirements. And then also where you’d be beefing up in front of the building too. Site utilities. They’re all in place. I think there’s a lot of small utilities. As you know redevelopment is much more complex than taking a raw piece of land when there’s, trying to accommodate the storm water. Again this is a challenge that we’ve talked about some of the other developments in the core of downtown managing storm water so there’ll be an underground system for this project too. As you know that was some of the things that we looked at for a potential grant on whether they get or not is up to the Met Council and that we did look for Carver County also to assist in some of that because that’s a bigger expense here when you’re doing redevelopment. So again the registered land survey as I mentioned there’ll be 3 lots. One for the Aldi’s. One for the apartments and then one for the parking lot itself. So with that we are recommending approval of the 3 action items. The site plan review, registered land survey. Excuse me, retail with the variance for the front and then the registered land survey which is the subdivision and adoption of Findings of Fact so with that I’d be happy to answer any questions you may have. Mayor Laufenburger: Thank you Ms. Aanenson. In a moment I’ll ask the council if they have any questions of staff but can you just restate this for us. If this, if we take action tonight on this tonight to approve this when would this come back to the council? Kate Aanenson: They could begin without, they put together a site plan agreement. Again I’m not sure if there’s any private or all the improvements are private. Otherwise they do a development contract but they would ultimately come back for you just for consent when we do the registered land surveys so they may want to do some demolition or some grading prior to that 33 Chanhassen City Council – July 10, 2017 because when you do a registered land survey you’re actually, like for the parking lot, you want to have that. It’s a 3 dimensional type survey. Little different. Mayor Laufenburger: Right. And then one last question and I’ll open it up to the council for questions. I noticed that on the language of what you’re asking us to approve the word Aldi’s does not appear there. Kate Aanenson: No. Mayor Laufenburger: So what you’re saying is that the City Council is approving 134 unit, or being asked to approve a 134 unit six story apartment building and a one story 19,000 square foot retail building. That’s what we’re approving right? Kate Aanenson: Correct. Mayor Laufenburger: And the developer has told us this is what they plan to do but. Kate Aanenson: That’s correct. Mayor Laufenburger: Okay. We’re approving the buildings and their use. Kate Aanenson: Correct. Mayor Laufenburger: Okay. Kate Aanenson: Both are permitted in the zoning district, right. Mayor Laufenburger: Alright thank you. So does anybody have questions of staff or would you prefer to hear from the applicant first? Councilmember Tjornhom. Councilwoman Tjornhom: And this is probably a question for the attorney. What discretion does council have when it comes to determining what type of business comes into a retail establishment? Roger Knutson: You made that decision when you zoned the property. The zoning of the property determines what can go in there. Once you’ve done that if they meet the zoning ordinance requirements you have no discretion. Councilwoman Tjornhom: Okay. Roger Knutson: To the use. And I should point out site plan approval is what we call quasi judicial. Not legislative. The law, the ordinances are in place and this is, and the purpose of the site plan review is to determine whether they comply with our ordinances. 34 Chanhassen City Council – July 10, 2017 Mayor Laufenburger: So essentially what we’re saying is, they’ve made application to do something in an area that’s approved. They’re coming to us and we’re saying yes or no. It is approved or it’s not approved. Roger Knutson: Yes what you’re looking at is do they meet the requirements of your ordinances. Because the zoning is already in place. They’re not asking for any zoning ordinance changes. Mayor Laufenburger: Okay, alright. Questions specifically of council. Mr. Campion, go ahead. Councilman Campion: Question for Ms. Aanenson. So have we approached the developer about you know the potential reducing the number of stories in the apartment buildings and extending it over the retail space? Kate Aanenson: Yes and I think that’s a design or the tenants whether or not they want to have that apartments over their, a commercial use. Some are willing to do it. Some aren’t so it was approached. I think the other question too we were asked is, could it even go higher. Well there’s a nexus between the number of units, number of bedrooms you have and how much parking you have to have so there’s a finite number of how much square footage and how much building can go on there and they have to meet those performance standards which would be the parking so. Mayor Laufenburger: Mr. Campion I think that might be a question of the applicant to ask them why this building. Why this size. Councilman Campion: Okay I was just curious first whether we had approached them. Kate Aanenson: Yes we did. Councilwoman Tjornhom: We’re still at staff questions? Mayor Laufenburger: Yes please. We’re here on staff questions. Councilwoman Tjornhom: Thank you. Mayor Laufenburger: Yeah go ahead. Do you have one? Councilwoman Tjornhom: I do have another one if that’s okay. Mayor Laufenburger: Councilmember Tjornhom go ahead. Councilwoman Tjornhom: If we could go back to the northeast view Kate. 35 Chanhassen City Council – July 10, 2017 Kate Aanenson: Did I pass it? Oh there yeah. Councilwoman Tjornhom: No, I must have that wrong. Kate Aanenson: Okay. Councilwoman Tjornhom: It’s where it’s. Mayor Laufenburger: Right next to the Frontier Building right? Councilwoman Tjornhom: Where it’s kind of hooked up yeah, the Dinner Theater. Kate Aanenson: This one. Councilwoman Tjornhom: There you go. Kate Aanenson: Yean northeast. Councilwoman Tjornhom: Sorry it was just a different slide of that view I guess. You know I was sitting at the KleinBank yard watching the parade and I had a good view of that whole building and that whole area and I’m still having a hard time wrapping my head around how the apartment building and the Frontier Building are going to marry where it looks like it’s not just a hunk of the Frontier Building was removed and this big building was set in. So can you help me with that a little bit or I mean did you try to work with it to make it look like it was meant to be or it always was? Kate Aanenson: Yep, we walked twice all the property with the applicant. I believe it was a pretty cold day both times. Walked around. Looked at the surrounding architecture and how to transition between the two. And there’s a nice space in there that they are working and talking to the Dinner Theater to try to soften some of that. That transition or the use of the space back there so that’s still an ongoing but the Dinner Theater is a frontier looking building and we haven’t. Councilwoman Tjornhom: No and absolutely and it’s a part of our history. Kate Aanenson: It is. And we worked hard to keep them here. Councilwoman Tjornhom: We’re losing the Klingelhutz farm and so now I hate to think that we’re going to lose that feel. Kate Aanenson: Yeah. But I don’t think that the frontier type apartments is kind of what yeah so it’s that transition between the two but I think because it’s attached to the larger building of 36 Chanhassen City Council – July 10, 2017 the Dinner Theater and their presence and I think that that helps because you’re just looking at one little snapshot. If you look at the bigger part of the entrance to the Dinner Theater I think that helps that whole façade. Mayor Laufenburger: How long does it take for a building to look like that? About 50 years right? Councilwoman Tjornhom: You know I’m right Mayor. Mayor Laufenburger: Alright, any other questions of staff at this time? Councilmember Ryan. Councilwoman Ryan: I do. I have a few. Mayor Laufenburger: Yep, go ahead. Councilwoman Ryan: Some of the nuts and bolts I guess. So starting with parking. I know it’s a challenging parking lot and you explained the shared access but now we’re adding the two buildings and depending on the location we’re asking or the variance request is between 1 and 4 feet narrower than what’s, what our city code is and so if you could just explain and maybe this is for the developer as well but how is this feasible for an apartment, a Dinner Theater, a grocer, and a hotel and I think it was brought up at one of the meetings what happens in snow events. I know the carts don’t have to necessarily be returned so now you have carts obstructing some of the path ways so if we could just have clarification on that please. Kate Aanenson: Sure. So actually these lane widths are actually wider than is required so could it be restriped to make it work? I think the complexity is when you get over here and we start changing that because of the surrounding, how this pattern then goes to the south that we felt it made sense to just keep that the way it is because that’s how it works as it goes across over to the Country Inn and Suites so it’s really just a matter of, like this is wider than the 26 foot requirement. This lane width here so could it be restriped to accommodate that? Potentially. Councilwoman Ryan: But then why are they asking for a variance? Kate Aanenson: Because it ties into the other two surrounding properties that share this access way. It’s the same thing as when people said can you move it to the street. Well the Country Inn and Suites also benefits from the cross access that you know when they have, that they can use it when it’s off peak. Maybe at night when they’ve got a bigger event there so. Mayor Laufenburger: I’m confused Ms. Aanenson. What is the variance that is part of this project? What’s the variance? Kate Aanenson: It’s the lane widths. It’s the widths. 37 Chanhassen City Council – July 10, 2017 Mayor Laufenburger: The width of what? Kate Aanenson: The parking stall and these parking stalls. Mayor Laufenburger: I thought the variance was the road between. Kate Aanenson: And that too. It’s existing and both of those are existing conditions. Mayor Laufenburger: They’re existing. They’re legally non-conforming. Kate Aanenson: Correct. Mayor Laufenburger: Okay. And in order for that, those spaces to be continue to be legally non- conforming a variance is required. Kate Aanenson: Correct, that’s how we saw it. Just to make sure there was no cloud over it. Mayor Laufenburger: Well let me ask the question that some people are thinking. Can we approve this without a variance? Kate Aanenson: Well the parking lot, I’ll let the City Attorney address that. Their parking drive is how it’s being used today. Mayor Laufenburger: Well I think Mr. Knutson would say we can approve this without the variance simply because we can do that. The question is whether or not the developer can develop without that variance in the street. Councilman Campion: We’re seeing more traffic use that lane then right? Mayor Laufenburger: I don’t know. That may be an assumption. Do Mr. Knutson can we approve this project without granting the variance? Roger Knutson: You can grant site plan approval without a variance but then they would, but then the question and I don’t know the answer to is they couldn’t do anything to make the widths in the street, they couldn’t change them at all. They couldn’t enlarge the non-conformity. I don’t know that there would be enlarging the non-conformity. They couldn’t enlarge or change the non-conformity. Mayor Laufenburger: Ms. Aanenson my understanding is that I’m talking about the road between the retail, the apartment and the Country Inn and Suites. Let’s just call that. Kate Aanenson: It’s this road right here. 38 Chanhassen City Council – July 10, 2017 Mayor Laufenburger: Yeah, let’s just call that. Okay. So today that road is narrower than what our ordinances allow, is that correct? Kate Aanenson: That’s correct. Mayor Laufenburger: Okay. And it’s narrower than what our ordinances allow because the street was in place before we put ordinances that widen the requirement. Kate Aanenson: Correct. And they’re not making it any more narrow. Mayor Laufenburger: Right so it’s legally, it’s legally non-conforming. Kate Aanenson: Correct. Mayor Laufenburger: It doesn’t comply with our ordinance but it’s okay because it was there before we kind of, a term I would use is grandfather right? Kate Aanenson: That’s the staff’s interpretation in granting, or supporting the variance correct. Mayor Laufenburger: Okay so my question is can the developer build this development keeping the road exactly the width that it is, legally non-conforming and still build their project the way they want to? Kate Aanenson: Keeping it the way it is today? Yes. Mayor Laufenburger: Keeping the width that it is today. Kate Aanenson: Yes. Mayor Laufenburger: Okay. Does it require a variance of our ordinances in order to accomplish that? Kate Aanenson: I’ll let the City Attorney address that. Mayor Laufenburger: Mr. Knutson. Roger Knutson: If they’re not going to increase the non-conformity, they’re going to leave it the way it is, not narrow something, then they don’t need a variance. Mayor Laufenburger: Okay. And Ms. Aanenson do they need to narrow this street in order to build their project? Kate Aanenson: I’ll let the developer speak to that. 39 Chanhassen City Council – July 10, 2017 Mayor Laufenburger: Okay we’ll let the developer ask that question, okay. Good. I’m sorry I took that from you Ms. Ryan but I, that was a question that I had. Okay you had other questions of staff. Councilwoman Ryan: Well we’re going to come back to that though. Mayor Laufenburger: I think we are, yeah. Councilwoman Ryan: Okay. And then, and I don’t, we haven’t talked about at all any, the th impact of the traffic to 78 and Market and I know that in the packet it’s, the study that’s referenced is the trip generation manual which was based on the specialty retail calculation. So my question is you know how is that sufficient for this development and was the actual traffic study performed? Kate Aanenson: Sure I’ll let the City Engineer answer that. Mayor Laufenburger: Mr. Oehme, good evening. Paul Oehme: Thank you Mayor. Good evening City Council members. The City did complete a traffic study last year as well on Market Boulevard specifically. Not in conjunction with this thth development but an overall global traffic look at specifically Market Boulevard, 79 Street, 78 Street so with that study we did include a, I think it was a 20,000 square foot retail business and then it was a 120 unit apartment complex as well in that study and we looked at the access points on Market Street and all the other side streets along Market Boulevard as well so that study, what that looked at was you know the existing accidents that were out there. The trips. ADT’s that are out there and the future growth in the area. We do assume some growth in the downtown besides the apartments and the retail business. We did include a restaurant that just opened up on th 79 Street in that study as well so we did look at globally a traffic study that incorporated some of the aspects of what we’re talking about here with this development tonight and that study did indicate that Market Boulevard in the future will need some improvements and we are working with, on looking at making those improvements along Market Boulevard in the next 5 years and we feel confident that the intersections that we looked at will function at an acceptable level of service in the future when those improvements are made as well so we anticipate that this development would take several years to build out and we are in the planning stages for making thth improvements to Market Boulevard. Along with signal improvements along 79. 78 Street as well too. There was a study that was completed just this year that the council reviewed as well so. So we did look at the traffic. Councilwoman Ryan: And I don’t remember, I see that report anywhere as it specifically relates to this development. I know there was a study done for Chick-fil-A and the impact to that intersection. Whether you’re spilling out onto Market but I don’t recall anything as it relates to this. The only thing that I see in the packet where it says the current use of the site is classified 40 Chanhassen City Council – July 10, 2017 as specialty retail and the Institute of Transportation Engineer’s Trip Generation Manual and it says using the trip generation information in the manual staff calculated the following. So I see that but I don’t see any independent traffic study and it concerns me because you know we’re putting in an apartment building as well as proposed grocer or some sort of retail and that is going to have daily trip generations and nowhere do I have any information that as it directly relates to this project so if I missed it could you point me in the direction of it. Other than this, the trip generation manual for strip malls. Paul Oehme: Yeah. So the trip generation that we worked with the developer on starting on those and the impacts that or the additional traffic that was, is generated by this development is in your packet and based upon those numbers, looking at the previous studies that have been th done staff felt confident that the Market Boulevard, 78 Street corridors can handle the additional traffic generated by this development. Councilwoman Ryan: Okay, well I won’t keep going. I think I have my answer there. The next question that I have, and Mr. Oehme I think this is you. It says engineering is going to address side by side driveway access. Could you speak to that please? Mayor Laufenburger: You want to reference the page Ms. Ryan. Councilwoman Ryan: Oh. Paul Oehme: Oh yeah, I think I know what you mean. Yep. Councilwoman Ryan: Let’s see here, it’s on page 15. It’s number 2 under engineering. It says the developer shall consult with city staff to determine if modifications can be made to the western entrance off of Market Street to eliminate the current side by side driveway access. Paul Oehme: So if you look at the plan that’s up on the screen today, there’s parking stalls currently at this location here and the main access point for this development is shown here just to the east. There is an access from this island here to the curb line on Market right here so we’re concerned with conflicts at this intersection since there can be right in’s and right out’s here as well as right here so what staff is looking at is can we close off this parking area here and combine it with this island here. Maybe losing a couple stalls right here so we channel the traffic to this access point and one access point on Market Boulevard here, including a stop sign. Mayor Laufenburger: That’s primarily cinema traffic is that correct? Paul Oehme: Yeah correct. But I mean there’s going to be potentially some conflicts there we feel and there has been and we’ve had some complaints over the years on that intersection so we just wanted to see if we can clean up that intersection a little bit better than it is today. 41 Chanhassen City Council – July 10, 2017 Councilwoman Ryan: And so with truck access coming in potentially that direction, and then with okay then coming up the alley way and the loading docks, then how, what’s the, again this all comes down to kind of understanding the parking lot and the traffic. Then how are these th vehicles going to leave, safely leave in front of the retail as well as the residential onto 78 Street? Paul Oehme: So staff did look at and requested the developer put together truck movement patterns through the development. How that would work orientating and looking at you know are the lanes wide enough. Are they going to impact into the stalls and I think one of the plan sets, I don’t have it in front of me. It’s in the packet. There’s a plan set that kind of shows, I don’t think we have an exhibit on it. Is it? Okay. No there’s actually a truck movement, turning movement sheet. It’s one of the plan sheets in your packet. Mayor Laufenburger: Yeah it’s page 34 of 78 in your packet. Paul Oehme: Okay, thank you. There it is, okay. So that shows you or orientates you a little bit on how potentially the trucks will come into the site. Back up to the loading dock and then exit th the site off of 78 Street. Councilwoman Ryan: Right but does this have the improvements that you’ve asked of the developer? Or is this is just the anticipated truck movements but have you received yet the updated, what you’ve requested of the developer to have the, I don’t know if it’s. Paul Oehme: We’re anticipating that to come through final design. Councilwoman Ryan: Okay. Todd Gerhardt: Mayor, council members. The truck movement as shown on Exhibit C2.13, it still works even with the access point open. It’s not ideal. It still needs to be closed is what staff’s recommendation is. As you can see on Market Street the truck turns and goes north through the alley. What Paul is suggesting to the developer is that they close that access point and make the main access point where the truck is moving so that would be, the island would be extended. The curb extended over to the Market Street curb. Mayor Laufenburger: Essentially that would prevent cars from exiting between the island and that, between the two islands. Todd Gerhardt: Correct. Paul Oehme: Correct. Councilwoman Ryan: And then the truck movement then is anticipated to go out past the residential, the entrance or one of the entrances of the residential in front of the retail you know 42 Chanhassen City Council – July 10, 2017 Seedlings and that whole, and Brindisi. That main entrance and exit over there. That’s where these trucks or delivery trucks are going to come in and out of? th Paul Oehme: They would access out of the site off of 78 Street, correct. Mayor Laufenburger: That’s one option. Todd Gerhardt: This just shows, that’s one option. That it can make that turn with that, with the island in front of Axle’s and the crossing there. What this is showing that a semi-trailer can go th by Seedlings and make the maneuver out and go west onto West 78 Street. Mayor Laufenburger: Just to, I would ask those of the chambers just keep your conversations down please so that we can hear one another up here. Thank you very much. Ms. Ryan you had other questions? Councilwoman Ryan: I do but I think they’ll be a combination for the developer as well as staff so I’ll wait please. Mayor Laufenburger: Alright, any other questions for staff at this time? Is that it? Okay. Well at this time I would like to invite the applicant to come forward, if the applicant is present. State your name and address for the record. Rick McKelvey: Good evening Mr. Mayor, council members. My name is Rick McKelvey with United Properties at 651 Nicollet Mall, Minneapolis, Minnesota. Mayor Laufenburger: We have office space available in Chanhassen. Rick McKelvey: I took note of that on the previous applicant, thank you. I think I wrote down all of your questions but I may have missed some. I have no doubt you won’t let me forget them before we’re done here. Mayor Laufenburger: Mr. McKelvey are you here alone tonight? Rick McKelvey: No I’m here with Jonathan Adam from Silverstone Realty, our broker on the project. Mike Mann from HLB Architects, our lead architect and Ryan Anderson from ISG Group, our civil engineer so there are, there is significant amount of expertise here should I not be able to answer any of your questions. Mayor Laufenburger: Okay. Rick McKelvey: I’ll just have a few brief remarks then I’ll try to touch on the questions. I personally have worked on this property, United Properties has worked on this property for nearly 2 years. I’ve created several market studies myself. We’ve commissioned two 43 Chanhassen City Council – July 10, 2017 independent third party market study analysis and I have no doubt, we have no doubt after that effort that there’s a strong demand, a pent up demand in front for new high quality housing product in Chanhassen. Downtown Chanhassen specifically. We also believe there’s demand for a new high quality and valued priced grocery offering in Chanhassen. When I say a luxury or when I say a high quality housing option I do not mean luxury. This is not top of the line housing but it’s very, very nice housing options. Granite counter tops, pendant lights, fans in the bedrooms, vinyl planked wood floors, stainless steel appliances, just to give you a feel for the interior of a unit but our building also has a lot of great amenities. Kate mentioned the community rooms. One up on the roof level with an outdoor terrace and one down at grade level also with an outdoor terrace. We have a movie theater. A large tenant storage area. Fitness room and we’re also finding a location for a golf simulator so it’s going to be a really exciting place to live and again we believe there’s a lot of demand there. From an architecture perspective I have to give a lot of credit to LHB Architects. We started this process, many of you saw an early rendering which really was just meant to be a massing diagram and it kind of gravitated out into the public as what we were proposing. It was not but if we use that as a starting point we’ve really come a long way with the design understanding the different architectural influences in the area. We of course looked very closely, I stood in the parking lot and looked with Kate and staff and looked at the surrounding area. The Frontier Building, Axle’s, the hotel, and we decided that it was actually at the advice of our architect that we look beyond the immediate surroundings and look at what we think is best in Chanhassen architecture and that’s the new library. The historic theater on the east side of downtown and actually the metro, or Southwest Metro Transit Station. It’s not Metro, it’s just Southwest Transit Station is the parking structure but it’s a very nice one. Has a lot of nice architectural features so we tried to take elements of what we thought was great architecture in Chanhassen and blend that in to articulate the building to reduce the massing. I know there’s concerns about the height. The six story height but we think with the exterior materials, the way we’ve broken up the façade and setting the six story element to the rear of the building. Keeping the lower portion of the th building along West 78 and again quite a distance back from the street front, it certainly doesn’t feel or read aesthetically like a 6 story building in our opinion. With that I will try to address a few of the comments. I just made some notes here. Traffic I think was one of Councilmember Ryan’s questions. Multi-family housing is generally a low traffic generator. Is one, sometimes 2 cars per unit. They leave for work. They leave in the evening. They may stay at home. They’re not a, it’s not a Life Time Fitness or a use that has these big masses of crowds coming in at a given time. It’s a very steady flow of traffic. A grocer of course has more peaks and valleys than a multi-family apartment building but in pure perspective of a multi-tenant retail building and I’d like you to visualize a fully occupied one and not one that’s largely vacant, will drive much more traffic than a multi-family apartment and a small grocer. Snow removal was a question. That’s something we deal with. United Properties has over 6 million square feet of property in Minnesota and upper Midwest. Snow removal just comes with the territory. We’ll find a place to squirrel it away so to speak. If we can’t we have to bring in dump trucks and a Bobcat to load it out and we’ll do that in morning hours and when everyone else is sleeping. Myself included I hope but that’s when snow is removed from our community. The drive lane width as staff mentioned, that’s an existing drive lane width today. We’d like to just work with 44 Chanhassen City Council – July 10, 2017 that existing. Not make it narrower. Not make it wider. We’re essentially working with the existing footprint of the building as it is today because of all the easements that surround the property. When one first looks at this property and sees a 4 acre site in downtown Chanhassen your mind really starts, starts going. I know mine did with all the opportunities but once we peeled back the onion so to speak on all of the easements and restrictions on what can actually be done here it’s literally that existing building footprint that we have to work with so maintaining that existing drive lane is very important to the project. Mayor Laufenburger: So just to clarify Mr. McKelvey. You do not require that alleyway as it’s been referenced, you do not require that to be narrower. You can work with it exactly the same size it is right now, is that correct? Rick McKelvey: That’s correct. Mayor Laufenburger: Okay. Rick McKelvey: The building height was raised as an issue. Building height is as much about density and the constraints on the footprint that we have in commercial and really any type of development. As you build you reach different types of construction thresholds. Whether it’s wood framed. Certain fire ratings. You get into concrete high rise construction so our objective to make this project financially feasible, and we’ve been very transparent with the City I believe throughout on our costs and our projected rents in this market. Our objective is to drive the cost per square foot down and the best way to do that is to build the most you can without broaching that next construction type threshold if you will. We did hold back on bringing that 6 story out th towards West 78, again to try to address the lower building height. Connection to the Frontier Building. There is Councilmember Tjornhom, I’m sorry. Mayor Laufenburger: Tjornhom. Rick McKelvey: Tjornhom, apologies. Mayor Laufenburger: Before you speak to that. So Mr. Campion your question related to why this size. Did he answer? Councilman Campion: Well he didn’t specifically. Did you explore building out over the grocer? Rick McKelvey: Oh yes I’m sorry. We did. Building over another use adds a lot of complications, as you can imagine but this goes back, a lot of my answer is going to go back to our limitations on our building footprint. We have approximately almost exactly 134 parking stalls available in that existing building footprint that we have to work with so we have 134 apartment units that we can construct to keep the one to one covered parking so that was our 45 Chanhassen City Council – July 10, 2017 most efficient way to do that and not add the additional complication over of an apartment building over a retail use. Councilman Campion: I guess I was thinking more if the 134 was the same number and just spread over less floors rather than. Rick McKelvey: Well we elected not to do that to avoid the complication of that construction type. Councilman Campion: Okay. Mayor Laufenburger: Can you speak to this Rick. How many properties, how many apartments? You said you have 6 million square feet of parking. Rick McKelvey: No, of commercial property. Mayor Laufenburger: Okay, do you have experience with other apartments like this? Rick McKelvey: We do. We have apartments in Duluth. We have apartments in Bloomington, yes. Yes we do Mayor. Mayor Laufenburger: Okay, alright. Continue. Rick McKelvey: The last note I made. Mayor Laufenburger: Mr. Gerhardt. Todd Gerhardt: Just for everybody here in the room could you talk about those complications of going over top of existing retail space just so everybody understands that housing and retail sometimes do not mix well together. Can you explain? Rick McKelvey: I absolutely can and I would add that they never mix well together but sometimes we find ways to do it when we absolutely have to. Retailer, in this case a grocery store that we’re proposing has chiller systems. There’s obviously a lot of rooftop equipment and exhaust so all of that has to go up through shafts. Chillers have to be mounted on the top of the apartment building and piped down increasing the size and length of course of piping. There’s maintenance complications as you can imagine in a shared property like this where there are more than one tenant gaining access to the apartment roof to replace filters on a grocery store. Mechanical, piece of mechanical equipment. It just, it adds a significant level of complexity to a project that in this instance we didn’t think was the right thing to do. Todd Gerhardt: How about noise and smell next to the loading dock area and. 46 Chanhassen City Council – July 10, 2017 Rick McKelvey: Well that loading dock area is as far away from the residents as it can be on our site plan. I think we’re next to the restaurant. The hotel restaurant there. That loading dock will be of course cleaned and maintained daily, if not hourly as needed so we don’t anticipate any. Todd Gerhardt: No I meant if you built the apartments over top of Aldi’s. Rick McKelvey: If we built the apartments over top of Aldi’s? Todd Gerhardt: Yeah. Rick McKelvey: Well we wouldn’t have smells per se because we would have to follow design guidelines to get those smells up and out through the highest roof that we have so we wouldn’t exhaust on the Aldi roof to go in the apartment windows. I’m not sure what, if I’m answering your question properly Mr. Gerhardt. Todd Gerhardt: Just the semi’s, the loading and unloading of the hours of the day when they come in and the people that would live on that side of the building. Rick McKelvey: Well yeah certainly if apartments were over that loading area it would, the additional noise at that location. Our drivers are generally very sensitive to that. They may arrive and park quietly if they arrive before their scheduled delivery but they’ll be backing in during normal working and non-sleeping hours. Mayor Laufenburger: Does your question relate to what he said so far? Okay, please do. Councilman Campion: Related to that, I know I had seen it before. I think there’s an Aldi with apartment buildings on top of it going up in Uptown, is that right? Rick McKelvey: Yes. th Councilman Campion: Off Lyndale and West 36 Street. Rick McKelvey: I don’t know that that project has moved forward. I think they’re struggling with that. Mayor Laufenburger: Is that a United Properties property? Rick McKelvey: It is not. Mayor Laufenburger: Okay. Councilman Campion: Yeah I just saw some news articles saying it had gone forward. 47 Chanhassen City Council – July 10, 2017 Rick McKelvey: Yeah I don’t know that it has or hasn’t. It’s not impossible to do, I’m not standing here telling you that you can’t do it. Mayor Laufenburger: It just creates complications as you’ve identified. Rick McKelvey: A lot of complications. A lot of additional costs. We like the design the way it th is. That would bring a larger mass up to West 78 which, and some may be positive but we think it’s a good design the way it is. Mayor Laufenburger: Mr. McKelvey you were kind of going through questions that you had written down. Did you come to the end of those questions? Rick McKelvey: I had. Mayor Laufenburger: Okay, go ahead. Rick McKelvey: I had one left and that’s the connection between our proposed building and the Frontier building from that northeast view which doesn’t show approximate 30 foot distance between the edge of that thatched roof and our building there. What we are proposing to do and we’re working with the Dinner Theater on this is heavily landscaping that 30 foot distance between our residential entrance and the edge of their building. You can imagine I’m sure that we weren’t excited about putting an aged deteriorated thatched roof on our new building but we did try to identify materials that complimented the gray and brown tones but there will certainly be a new and an old look here if you compare the two buildings in that manner. Mayor Laufenburger: Young or mature. Rick McKelvey: If you try to buffer the two. Mayor Laufenburger: Young look and a mature look. Rick McKelvey: That’s a good way to put it. Mayor Laufenburger: Alright. Any other questions you wanted to address? Rick McKelvey: No, that’s the end of my notes. Mayor Laufenburger: Alright there may be some here from the council so let’s. Rick McKelvey: Happy to answer. Mayor Laufenburger: Mr. McDonald you have any questions of the applicant? 48 Chanhassen City Council – July 10, 2017 Councilman McDonald: Not right now. Mayor Laufenburger: Okay. Ms. Tjornhom do you have any questions of the applicant? Councilwoman Tjornhom: No. Mayor Laufenburger: Ms. Ryan? Councilwoman Ryan: I do. Mayor Laufenburger: Okay. Councilwoman Ryan: Alright. Just to go back to the, I found the page where I had read about the width and I know Mayor you’re trying to get some clarification on that as well. It’s on page 11 and it’s right underneath. Mayor Laufenburger: Is it 11 of 78 in the packet? Councilwoman Ryan: Yes. Yes 11 of 78. Mayor Laufenburger: Okay. Alright. Councilwoman Ryan: And it’s under the daily traffic trips but it says that the applicant has indicated that the parking area on the north side of the building would primarily service the retail portion. Due to the existing geometrics of this area the drive aisle is 24 feet which is 2 feet narrower than the minimum requirement per city code. And then it says similarly the existing and proposed pavement width on the west side of the building is between 22 and 25 feet wide which is 1 to 4 feet narrower than the minimum required by code. So I just, can you just explain why then if it isn’t needed then why are you asking for a variance. Rick McKelvey: To follow city protocol is our understanding is to make it as Kate words were so there’s no cloud above it. I don’t know that a variance is needed. I’m not the right person for that but we’re trying to work with the existing layout and dimensions of the property. Kate Aanenson: Right so the complexity comes in because of the shared parking agreement here so when you look at this line that will be parking here, and then this line continues through Country Suites. So then you’re offsetting everything so because there are cross access agreements in place we felt it made sense to give the variance and leave the existing conditions. Councilwoman Ryan: And it doesn’t, you don’t anticipate any challenges with traffic movement, delivery trucks, etcetera? 49 Chanhassen City Council – July 10, 2017 Kate Aanenson: We have a lot of the older part of the city that was built under a different standard. Councilwoman Ryan: Pardon me? Kate Aanenson: There’s a lot of the older part of the city that was built under a different parking stalls. Councilwoman Ryan: Granted understand but now we have a new development with significant traffic. Wouldn’t this be the appropriate time to make those changes? Kate Aanenson: The lane widths are fine. It’s the depth of the parking stalls. Could they accommodate it? Sure. I don’t think they’re going to lose that many parking stalls so. Councilwoman Ryan: So if they lose parking stalls then are they under requirement of how many stalls they have? Kate Aanenson: I don’t believe so. Councilwoman Ryan: You know I’m not trying to split hairs here. I’m just trying to understand if when the recommendation is to grant a variance and I’m having a hard time understanding what that variance is for. Kate Aanenson: Sure. Again I’m trying to explain that because the Country Inn and Suites also has, so every time, any time that they negotiate or redo that parking lot it impacts both other parties on either side. Councilwoman Ryan: Okay. Kate Aanenson: So on the back side you know the one place that we’re trying to fix as the City Engineer indicated where there’s dual access out so you know these parking stalls, so by fixing what they have control over it also impacts the other parcels so. Councilwoman Ryan: And the other. Kate Aanenson: So I guess I’m saying if you look at the percentage of what it would impact to us it’s a pretty minor, and maybe their engineer can address that question but it’s a pretty minor impact as far as, would it increase traffic? Councilwoman Ryan: Not increase traffic. The impact to safety or snow removal or you know we look at different parking lots and some of the challenges that we’ve had in various parking lots with newer developments. Whether it’s parking stalls or access, I just want to make sure that we’re doing our due diligence and making sure that this is a right fit for this development. 50 Chanhassen City Council – July 10, 2017 Rick McKelvey: Well and I’ll add a couple other thoughts. Not saying it’s wrong. It’s just fine with Chanhassen’s requirements for drive lane widths and parking stalls as much wider than most cities we work in, especially in urban, you know densely populated areas such as this site plan. Chanhassen code aside works very well. It matches most of our properties. Snow removal won’t be an issue. As was mentioned by staff we’ve done truck movement plans that in my experience have utilized a pretty liberal or conservative approach to movement. In other words they model a novice driver or me if I were to climb in a semi truck and try to pull out. I wouldn’t recommend that but the point is a good driver can do much better than the models indicate and the models work just fine. Mayor Laufenburger: So Mr. McKelvey and Kate, whoever can answer it, the parking layout today and the width of the alley today will service your needs, is that correct? Rick McKelvey: Correct. Mayor Laufenburger: Okay. Do we need a variance in place in order to keep those the way they are? Todd Gerhardt: Mayor and council. Mayor Laufenburger: Mr. Gerhardt. Todd Gerhardt: The City Attorney and I have been having discussions here and what we have is a non-conforming situation and. Mayor Laufenburger: It’s legally non-conforming right now. Todd Gerhardt: Legal non-conforming situation and what Kate is doing is documenting that legal non-conforming situation by granting or suggesting a variance. You could go either way. Kate? Kate Aanenson: Correct. Correct. Do again. Mayor Laufenburger: And that, granting that variance is using the words Mr. McKelvey used and I think you did as well, removing any cloud… Kate Aanenson: Correct. Mayor Laufenburger: Is that what you’re saying? Kate Aanenson: That’s correct. 51 Chanhassen City Council – July 10, 2017 Mayor Laufenburger: Okay. Okay. That helps me understand. Is that better for you Councilmember? Councilwoman Ryan: Yes. Kate Aanenson: And to be clear the lanes in the back are being readdressed and realigned so they’ll all meet standards. It’s those ones that are in the front there. Mayor Laufenburger: Okay. Kate Aanenson: Everything in the back is to current city code. Mayor Laufenburger: Let me just restate this again. What you’re saying Mr. McKelvey is that the layout of the structure outside, outside of your building footprint is perfectly acceptable for you and Kate today it is legally non-conforming so it matches the requirements for the City today? Kate Aanenson: Correct. Rick McKelvey: That’s correct. Mayor Laufenburger: Okay. Sorry for hijacking that. Kate Aanenson: So just to be clear again that building line is staying the same on the western side and the northerly side. It’s following that same building. They’re following the footprint of the existing building there and the small building so that’s why I’ve got this drawing up there. Following that same building line. Mayor Laufenburger: Gotch ya. Kate Aanenson: The back of the parking lot will be improved with additional landscaping and that to meet the standards. Mayor Laufenburger: Right, okay. You had some other questions? Go ahead. Keep going. Councilwoman Ryan: I do. The financial situation of this project. I don’t know if you’re the person who can address this. As you know at the council meeting, the last council meeting there was a, it came before the council to offer a resolution of support for the LCDA grant for $715,000 awarded by Met Council and some of the elements for that are storm water management, a tank system, pedestrian/bike connections, renewable energy, solar PV green roof, some of the architecture and engineering fees as it relates to renewable energy components. There was also the $60,000 grant request and then the request for a TIF district. Certified TIF district. What happens to this project if one or all of those things don’t go through? 52 Chanhassen City Council – July 10, 2017 Rick McKelvey: Well I’ll take the largest one first which is the TIF district. We have as I stated a few minutes ago, we’ve been very transparent with city staff on the cost of the project and achievable market rates in Chanhassen and the market region as a whole. The project is financially marginal which is why we requested the TIF subsidy and the City, and I don’t want to turn this into an education on TIF. I’m sure everyone understands it just fine. Certainly we’ll receive the majority of the tax increment as a result of helping this project get started. The grant application is really an opportunity that we saw to make this project better for the City and for our residents. That’s not to increase a financial return or even to make it, the project feasible. Those transit oriented development grants are for projects exactly like this. To promote people living on transit ways. Use public transit. We happen to have the Southwest Transit station right there so it was a perfect candidate and our intent for those grant funds that were discussed last week is to make the project better with sustainable features such as solar power, a green roof, so it’s really to set a higher bar in Chanhassen as much as for the building on what a new property should include. Councilwoman Ryan: And so if that grant doesn’t come through or a portion of that grant comes through, let me restate that. So if it doesn’t come through then those items aren’t, you won’t do any of those? Rick McKelvey: That’s correct. Councilwoman Ryan: Okay. If it is granted by Met Council what, what influence or impact does Met Council have over this project? Are they involved in any way because of the, providing the grant? Rick McKelvey: Just certification that the improvements that we requested the grant funds for are completed. Councilwoman Ryan: So no strings attached by Met Council and what they’re requiring for what the apartment building is or anything? Rick McKelvey: No. Councilwoman Ryan: It’s just specific. Mayor Laufenburger: It sounds Mr. McKelvey like similar to what we discussed with Emerson earlier. They make the application for the grant and then it’s their obligation to demonstrate that they do the things that they say they’re going to do. So you demonstrate that you’re going to do the things, excuse me. That you have done the things that you’re going to do and then the grant funds get… 53 Chanhassen City Council – July 10, 2017 Rick McKelvey: That’s correct. The City is effectively a conduit for the grant funds to help us improve the building. Mayor Laufenburger: So you’re accountable for them? Rick McKelvey: Yes. Mayor Laufenburger: So to that extent they are accountable to the Met Council Councilmember Ryan. So the Met Council, they have administrative people that watch over things like that. They don’t you know freely give these funds out just because people look nice. They do it because somebody says they’re going to do something right? Rick McKelvey: Right and the grants will be, would be if we’re so fortunate, be distributed at completion so they don’t write us a check. We have to implement what we’ve agreed to implement and they verify it and then issue the payment to reimburse our costs. Councilwoman Ryan: Okay. I just wanted to clarify any involvement with Met Council in this project if you are a recipient of the grant. Rick McKelvey: Correct. Todd Gerhardt: Mayor, council I think just to clarify that a little bit more that you do receive these funds. There’s no affordable or low income housing associated with that money. A certain number of the units do not have to be affordable or low income. Rick McKelvey: That’s correct. Their motivation is to see people living near transit. Public transit and that’s what but you’re right Todd. We don’t have any additional obligations for rental type or anything else. Just to deliver what we are going to utilize the grant for. Todd Gerhardt: What they want to see is better storm water management, green roof technology, solar technology to be implemented. Rick McKelvey: Near public transit yes. Todd Gerhardt: Near public transit and housing, multi-housing. Rick McKelvey: Yes. Yeah this project fits perfectly in our opinion of what they’re seeking. Todd Gerhardt: You said you did a market study too. Could you explain to the council and to the public here what your market study said that the market could support for rents for your one bedrooms? Do you have two bedrooms? Three bedrooms? 54 Chanhassen City Council – July 10, 2017 Rick McKelvey: Yes I didn’t bring a copy. I don’t have it committed to memory but on average it was $1.80 to $1.85 per square foot so if you boil that into unit sizes, a typical two bedroom would be 900, 850 square feet so that’s about a $1,500 a month rental rate for a two bedroom. A one bedroom may have a higher dollar per square foot because it’s a smaller package. Same bathroom, same kitchen, same everything but in a smaller package so a one bedroom or an efficiency, we don’t have any efficiencies. I take that back. A one bedroom would be closer to $1,100 or $1,200 per square foot which is about $1.90 if you want to think about it on the microscopic level of cost. Todd Gerhardt: And that’s the highest you have is a two bedroom or two bedroom den type? Rick McKelvey: Yeah well we do have just a few three bedrooms. I believe 6 of them but on a cost per foot basis the larger the unit the lower the cost per foot but on average, you blend it all together about $1.85 per foot per month. Todd Gerhardt: Okay, thank you. Mayor Laufenburger: Are you prepared to identify what that means in monthly rent? Rick McKelvey: Yes. Well 1,000 square foot apartment which would be a two bedroom plus den for example would be $1,850. Mayor Laufenburger: $1,850. Rick McKelvey: Correct. Mayor Laufenburger: Okay. Rick McKelvey: So they’re very nice apartments. I again stop short of calling them luxury which we get into $2,500-$3,000 a month but they’re very high quality units. Mayor Laufenburger: Okay let me go back to Councilmember Ryan. Did you have other questions? Councilwoman Ryan: I don’t. Thank you. Mayor Laufenburger: Okay. Anybody else? Okay I do have some. Is the entrance to Aldi’s separate from the entrance to the apartments? Rick McKelvey: Yes. Mayor Laufenburger: So if somebody is in the apartments they go outside just for a nice little casual 10 step walk and go over to Aldi’s right? 55 Chanhassen City Council – July 10, 2017 Rick McKelvey: Correct. Todd Gerhardt: So Mayor on this picture the entrance to Aldi’s would be underneath the Aldi’s sign. Mayor Laufenburger: Yep. Todd Gerhardt: And then the people standing over to the left would be the entrance to the apartment. Rick McKelvey: Correct. Mayor Laufenburger: Okay. You may have answered this but I’m going to ask it anyway. Why these apartments? Why not affordable housing, Section 8 or subsidized housing? Rick McKelvey: Well first and foremost is not what United Properties does. Section 8 or affordable housing is basically a small industry in and of itself. Much like being a hotel operator or a movie theater operator. You have to have dedicated staff that live and breathe Section 8 low income housing and we do not have that staff. We’re not set up for that type of operation. And that’s nothing, we’ve never done a project of that type. Mayor Laufenburger: Okay so you’re just simply saying that’s something you choose not to do. Rick McKelvey: Correct. Mayor Laufenburger: Okay. Why a grocery store? I know it’s an approved usage but why a grocery store when other types of retail are available? Rick McKelvey: In my opinion there are no other retail available that has the credit worthiness to support new construction. We scoured the market intensely, as I mentioned for nearly 2 years. We’ve had several different plans and the one tenant that raised their hand and said we understand the market. We think there’s a place for us here is Aldi. Like it or not that’s who believes they can make a go of it here in Chanhassen. Mayor Laufenburger: Okay. If there were representatives from Aldi here I would ask a question. I don’t know if you’re prepared to answer this. Do you want to try? Rick McKelvey: I’ll do my best. Mayor Laufenburger: Okay. What is Aldi’s market and why do they see a match in Chanhassen? 56 Chanhassen City Council – July 10, 2017 Rick McKelvey: In my opinion Aldi’s market is a customer who wants a high quality product at a value price. They don’t have the frills of a Byerly’s. There’s no bagger. You actually have to bring your own bag. You have to put a coin in a cart to bring out to your vehicle. Bring the cart back if you want your coin back so they are low overhead so they can provide a high quality product at a low price. Mayor Laufenburger: Do you know of anything that Aldi’s is doing to invest in their current stores or invest in the US market? Rick McKelvey: Well this is a perfect example of what they’re doing. They’re conforming away from their prototype that they would love to do. They’d love to go if there were a blank corn field in this location they’d love to put up a free standing prototype store but they are conforming to our architectural guidance and the City’s guidance to blend in with the look we’re trying to achieve so I think they’re doing a lot to change. To improve their image to appeal to a broader customer than they do even today. Mayor Laufenburger: Are you familiar with the other Aldi stores in and around? Rick McKelvey: Several of them yes. Mayor Laufenburger: Yeah, what would be stores that would be close? Or the closest. Rick McKelvey: Well Eden Prairie naturally is close but from an exterior perspective none. This will be a very unique design. Of course their interior layout they try to keep as consistent as possible. I suspect there will be some upgraded interior finishes but there will be none. This will be really a concept store to conform to our architectural desires for this location. Mayor Laufenburger: Any idea how many employees they will employ Rick? Rick McKelvey: I believe 50 employees. Some, most part time as you can imagine but I think a dozen or so of those full time. Mayor Laufenburger: And what will their hours be, do you have any idea Rick? Rick McKelvey: I think 8:00 a.m. to 10:00 p.m. Monday through Friday and they close at 8:00 on Sunday. Mayor Laufenburger: And what kind of long term agreement will you have with them? Rick McKelvey: A 20 year lease. Mayor Laufenburger: 20 year lease, okay. Alright. Thank you very much. 57 Chanhassen City Council – July 10, 2017 Rick McKelvey: Thank you. Anything else? Mayor Laufenburger: I guess that’s it for right now. We reserve the right to recall the witness though okay. Alright. Any questions or comments council? Okay. I have 9:07. I had allowed myself a consideration to conclude this in an hour and a half so by my watch I’ve got about 23 minutes so I’m going to ask if there is anybody that would like, from the public that would like to speak. Before you stand up though I’m going to put some restrictions on this. I would remind th you that the public hearing took place on June 20. We’ve heard and reviewed comments on a number of issues. Parking, height of building, vision, loading dock, color of the building, why grocery retail, traffic issues, you’ve heard us, you’ve heard it all. I will ask that if you choose to speak that you address something new that the council hasn’t heard before. Also I’ll ask that if you’ve addressed the Planning Commission then I would ask that you allow others to speak so as I recall a Mr. Caney, Dr. Legrand, Ms. Boudreau-Landis, Ms. Smith, Mr. Mayer and Mr. Gustafson, thank you for taking time to, taking the time and preparation to appear before the Planning Commission. It’s as if you appeared before the council so you are, I’ll ask that if there’s anybody else that would like to speak I’d like to limit it to 4 or 5 minutes each and then conclude in about 20 minutes so. I would also ask that you address your comments to me. Make them about the project itself. Not the individuals involved in the project and I also ask that your remarks be respectful of this body in the chamber and you’re welcome to disagree with an informed opinion and I ask that you not be disrespectful in your approach. Thank you. So is there anybody other than those that I’ve mentioned that would like to speak at this time? Thank you. State your name and address please. Joanie Demeter: Yes, good evening Mr. Mayor and members of the council. Joanie Demeter, 8203 Marsh Drive. As a member of Chanhassen I was shocked that there was going to be permanent housing placed so close to railroad tracks. Active railroad tracks. I hope in full disclosure that future residents will know that trains do come through and they’re not necessarily quiet. And I don’t know if that’s been brought up yet or not. The other thing that I would consider. Mayor Laufenburger: Actually it has been mentioned that there will be trains going through there. I don’t think that’s a secret. Pretty much known by the community but your point is well taken Ms. Demeter. Joanie Demeter: It’s not the point that it’s a secret. It’s that future residents may not be aware of it. They may not go around the block and notice that there are railroad tracks so I’m just saying that would be an important point to be brought up to any future residents. The other thing I would bring up is, I understand the importance of keeping it looking like it’s part of Chanhassen but the red and green may be offensive to some people. Think of red and green. Christmas colors so I would say you might want to think about more neutral colors in the building itself. The cyan to me on the south side looks very harsh and I don’t know how that ties in to any of the cityscape here in Chanhassen. The cyan color. Thank you very much. 58 Chanhassen City Council – July 10, 2017 Mayor Laufenburger: Thank you Ms. Demeter. Andrew Hiscox: Hi. Mayor Laufenburger: State your name and address for the record. Andrew Hiscox: Andrew Hiscox, 7500 Erie Avenue. Mayor Laufenburger: Mr. Hiscox is that correct? Andrew Hiscox: H-i-s-c-o-x. Mayor Laufenburger: Okay. Andrew Hiscox: Some of the staff knows me. Mayor Laufenburger: Now we all do. Andrew Hiscox: Now you all do. Mayor Laufenburger: Nice to have you here. Andrew Hiscox: I’m a little concerned about the traffic. I know this has been talked about but I just want to ask a clarifying question. The street between the Dinner Theater, or sorry. The Country Suites and the retail that goes down the hill into the theater. Mayor Laufenburger: Right. Andrew Hiscox: Is that going to be a two lane road and trucks are going to come up and down that street? Mayor Laufenburger: That road will be exactly the same size as it is right now. Two lane, three lane, four lane. It will be exactly the same size. There will be no change. Andrew Hiscox: Will trucks go through that is my question? Mayor Laufenburger: I expect trucks will go through as they do now Mr. Hiscox. Andrew Hiscox: Okay. Has anybody on the council ever seen two cars on that road at the same time passing each other? Mayor Laufenburger: Yes I have. 59 Chanhassen City Council – July 10, 2017 Andrew Hiscox: I never have. I’ve lived here 20 years. Never seen it and if it did happen I’m pretty sure in the winter you’d have people running into each other. Is that road going to be improved at all? I mean because it’s kind of weird. It goes down and it lumps and it goes over the. Mayor Laufenburger: Well let me ask this question Mr. Oehme. Mr. Oehme is the road between the proposed building and Country Inn and Suites, is that a public road or is that a private road? Paul Oehme: That is a private road. Mayor Laufenburger: And who’s responsibility will it be to maintain that road? Paul Oehme: The private owners of the. Mayor Laufenburger: Is it shared between the property owners of Country Inn and Suites and the project? Paul Oehme: I believe it’s a cross access agreement. Mayor Laufenburger: Okay. So the maintenance of that road would be covered through a cross access agreement, am I correct on that Mr. McKelvey? Rick McKelvey: Yes. Mayor Laufenburger: Okay. Andrew Hiscox: I mean my concern is the design. It just, I don’t. Mayor Laufenburger: The design of the road or the building? th Andrew Hiscox: Yeah, I mean trying to go from anywhere on 78 Street to go back to the theater, and I’ve done this many, many times. Taken my kids to movies and stuff. It’s just, I’ve never seen two cars pass each other on that. It’s a very difficult thing to negotiate and if you’re now going to add delivery trucks to the mix there, I think you’re going to have a huge, huge problem and I think it would behoove the City and interested parties to take a look at that a little more closely and say maybe this should be modified. And then on top of that if you’re going to put a variance in, on that particular, I think that’s one of them is that correct? No variance? Mayor Laufenburger: The road will remain exactly the same. Andrew Hiscox: No I’m sorry, it’s non-conforming. Mayor Laufenburger: Right. The road will remain the same size that it is right now. 60 Chanhassen City Council – July 10, 2017 Andrew Hiscox: Right and what I’m saying is I don’t think that road is adequate for the kind of traffic you’re describing at all. Mayor Laufenburger: Okay, very well. Andrew Hiscox: Okay. Mayor Laufenburger: Anything else Mr. Hiscox? Andrew Hiscox: There’s a bunch more but I think you covered a lot of it in the last meeting. Mayor Laufenburger: Thank you very much Andrew. Andrew Hiscox: Thank you. Mayor Laufenburger: Anybody else? Please. Joel Jenkins: Joel Jenkins, 7305 Frontier Trail. It’s the first I’ve really listened to this project and I like the idea except I would raise a larger question. Trucks going up and down there? What about the fire trucks? Can fire trucks get in there? Can fire trucks get out of there? Do we have a large enough hook and ladder truck to go up 6 or 7 stories and be efficient? Or are we in the future going to be asked to build a new fire hall? Get a new fire truck or two or three to accommodate the fire issues that are going to be prevalent in 6 and 7 and 8 and 9 and 10 story buildings. That’s all I’ve got. Mayor Laufenburger: Thank you very much. Ms. Aanenson can you, has this project been reviewed by the Fire Chief? Kate Aanenson: Yes it has and it can adequately serve. Just as a note of interest on our next project that’s coming up later on the agenda we also have a 6 story apartment building going in there too. Yes we have the equipment to manage that. Mayor Laufenburger: Okay, alright. Thank you. Mr. Gerhardt. Todd Gerhardt: ...can reach 100 feet. Mayor Laufenburger: 100 feet so 23 feet to spare. Okay. Anybody else? By the way I appreciate those of you who come forward. I know it can be intimidating. I try to make it as friendly as possible. Mr. Johnson? Oh state your name please. Brad Johnson: My name is Brad Johnson. I live at 8922 Essex Road. I’ve been a resident of Chanhassen for about 35 years. A couple of us in this room have basically been trying to 61 Chanhassen City Council – July 10, 2017 redevelop this particular building now for 30 years. Originally it was going to be a community center. Remember that Todd? Todd Gerhardt: Oh yeah. Brad Johnson: We were going to put an ice rink in there. We had, we lost out to the, what did we lose out to? Can you remember? The fire hall. Todd Gerhardt: Yeah. Brad Johnson: The fire guys won out over the community center. So we’ve been looking at redoing this building for a long, long time. I’m not anymore involved in it. I am involved in redeveloping downtowns. As you know we started out with almost nothing here and we’ve added 500,000 square feet of retail. Every housing unit that’s within about a half a mile here I was either directly or indirectly involved in developing. Heritage, my wife currently has management of about 1,000 units within a few miles of here. We’re very familiar with the business of both development of downtown and with the business of marketing new homes or new apartments. What’s driving this is two things. One is your grocery market, if you read the paper over the weekend you’ll see is a dramatic change in groceries and right now Aldi’s is adding 900 new stores in the next 5 years. They’re in the nitch market. If you visit the Eden Prairie store you’ll say well this is not an Aldi’s. It’s an upgrade of the one I was in 10 years ago in Marinette, Wisconsin. They’ve been improving the store. It does not even smell like a farmers market that they did when they first started out so you’ve got the advantage and as Rick said it’s a good quality tenant. You have a 20 year lease. It will be there for a long time. It’s going to generate a lot of traffic where there is a traffic void. We did Town Square. We’ve done all the buildings that are in that area. Mayor Laufenburger: Town Square is, that’s over by Chapel Hill correct? No Town Square. Brad Johnson: No that’s Colonial Square. Mayor Laufenburger: Okay. Brad Johnson: We own Town Square. Todd Gerhardt: Von Hansen. Mayor Laufenburger: Oh Von Hansen. Brad Johnson: Town Square was the first building here. Todd and I drove his truck through it. Remember those days? Todd Gerhardt: Yep. 62 Chanhassen City Council – July 10, 2017 Brad Johnson: It was successful as the rents have dragged for some period of time. We don’t have a true anchor in downtown. The Dinner Theater brings a lot of traffic but we discovered very early in life it brings no traffic that uses Chanhassen because it’s an adventure on it’s own. Once you go in the Dinner Theater you’re in the Dinner Theater. You leave, other than the hotels have done very well as you know. So I think you’re getting an advantage of one of the greatest credits in the business right now. They also own Trader Joes and they obviously made a decision that Aldi’s fits here. I think you’re going to be surprised about who shops there. Right now people are shopping for experience and I guess Wednesday is a real experience at Aldi’s for people that like to shop. Second thing is we’re doing in a lot of communities is doing downtown housing where there wasn’t enough housing and I’m afraid I am now considered to be an older person in Chanhassen and there really is no, right now our Heritage is packed and we need a lot th more housing. The downtown areas, if you read in the paper again, 49 and a half France Avenue, I think they’re adding 200 units of housing there to try to create traffic and a feeling on th 50 and France if you can believe that for consistency so housing in the downtown will help people. I have read the thing and it says a lot of people are wandering around to buy groceries. It brings people in to go to the restaurants. It’s a delightful place to have all this stuff. In Duluth, which is 150 years old and we’re currently working on a downtown apartment building, about the same as this. There hasn’t been one built there for 100 years. There is no building like this st with an elevator west of 21 Street. Mayor Laufenburger: Could I ask you to wrap up in about a minute? Brad Johnson: Yeah, and the purpose of this discussion was simply is these are the things that you have to do to the downtowns. We’re doing in Duluth too late. Very expensive so the more density you can bring into downtown, especially in Chanhassen for people my age and the millennials is wonderful. Thank you. Mayor Laufenburger: Thank you Mr. Johnson. Is there anybody else? State your name and address. Michelle Christopher: Hi I’m Michelle Christopher. I live at 7300 Laredo Drive. I have not been here as long as Mr. Johnson. I’ve only lived, well my city has been Chanhassen for 3 years. I lived 5 houses away from Chanhassen for 8 so. Mayor Laufenburger: Close enough. Michelle Christopher: Exactly. Mayor Laufenburger: Taking advantage of all of the amenities in Chanhassen. Michelle Christopher: I claimed it. Yeah I claimed it. And so when I saw this, this is something that I’ve watched even growing up. I graduated from Eden Prairie High School and grew up 63 Chanhassen City Council – July 10, 2017 there and so Chanhassen’s always been very close. I’m excited to see that we are looking at opportunities to bring it up and make it current. I was surprised at the retail option. You guys covered that so thank you so much. A lot of great questions. I really appreciate that and the concerns that I had and my neighbors have expressed. My question about the retail option that we selected, or that was selected I should say is if there is a break of lease. You know with the amount of competition in the area, there’s grocers and etcetera, if there’s concerns or issues and there’s a break of lease, what other retail options would there be? It sounds like there was a limited ability or wanting to step forward so that would be my question is if, you know with the competitive market out there for a grocer and a lease is broken what other options so it doesn’t sit vacant. Mayor Laufenburger: Okay. Good question. Thank you Ms. Christopher. If breaking the lease, that’s not a city issue. That’s an issue with the developer. The property owner but if this retailer vacated they, whoever comes in would have to follow zoning for that area, is that correct Ms. Aanenson. Kate Aanenson: That’s correct. I would just add to that. I think going to the developer’s point, we have changes in the downtown in Villages on the Pond where people move around and I think some of the complexities, we’ve had restaurants change and when you try to do venting so let’s say in 10 years they decided to vacate and two restaurants chose to go in there. It’s easier for them to try to remodel when there’s not, I think Mr. McKelvey addressed this too, when they put the proper ventilation and all that stuff in when you don’t have a building on top so it does provide flexibility for change in use. I think we always have to think about change in use. It can happen but right, to your point Mayor. It’d be a permitted use in the district. It would have to meet the parking standards and everything else but. Mayor Laufenburger: Okay, I think we have time for one or two others. Is there anybody else that would like to speak? Please. State your name and address please. Tom Kersten: Tom Kersten, 7402 Laredo Drive. Mayor Laufenburger: Mr. Kersten, good evening. You comments. Tom Kersten: Thank you. I mostly just want to bring up a point that I think is echoing the sentiment that I believe was Mr. Hiscox’s earlier today. I think I understand why there is the interest in retaining the variance that is lawful. Mayor Laufenburger: Retaining the width as it is today, is that what you’re referring to? Tom Kersten: Yeah, yeah. I think I understand that, yes. On the north side I understand that with the parking lot sharing with other businesses but I would like to see, I would love to see all of it up to code as written today to bring it up to compliance. However in particular this road inbetween the two structures or two businesses, given the traffic that’s going there. The amount 64 Chanhassen City Council – July 10, 2017 of construction that will be taking place I would love to see the council consider at least retaining that or making that a requirement. That that road be brought up to compliance. I can understand why the parking lot on the north side, there’s a lot of stuff that would affect existing businesses but this road inbetween I completely agree. It is extremely narrow and given that typically when property owners are asked to bring their residential properties up to code when they do, you know they work on their basement they have to add things to other areas of the house just to become in compliance. I don’t see why we can’t ask the same for this sort of situation and businesses so that’s all. Mayor Laufenburger: Thank you Mr. Kersten. Got time for one more. State your name and address please. Steve Stamy: Steve Stamy. People know me as Slammer in the community. That’s my nickname. Mayor Laufenburger: Steve Stamy? Steve Stamy: Stamy. 491 Big Horn Drive. Mayor Laufenburger: 491. Steve Stamy: Yeah. Mayor Laufenburger: So do you want me to address you as Slamey? Steve Stamy: Look if you mentioned my real name most people won’t know who I am. So it just happened a long time ago and I can’t get rid of it. A couple things. Just two things. One, I’d like to know who did the study to recommend that Aldi’s could survive in the environment in Chanhassen when we have Target, Cub, Whole Foods and Byerly’s, and I understand. Mayor Laufenburger: Mr. Stamy? The people who did that study are Aldi’s. They made the determination that they wanted to be in this city. Steve Stamy: I’d just kind of like to see the information. I’m a numbers guy and I like to see you know how they, what they came up with and how they did it. Mayor Laufenburger: I think it would be very appropriate if you wouldn’t mind Mr. McKelvey. Say that again? Oh it’s proprietary. Oh. Steve Stamy: They’re a privately held company right? Mayor Laufenburger: Yeah. Thank you for correcting me Mr. Gerhardt. I would hate to get in trouble for that. 65 Chanhassen City Council – July 10, 2017 Steve Stamy: And then has there been an economic study, I’m sure there has been and I didn’t see it or overlooked it, about what this means for the community of Chanhassen in terms of economic benefits and things like that? I didn’t hear any of that tonight. The other thing I didn’t hear was briefly discussed was the improvements for Market Boulevard and some of the surrounding streets. What kind of budget are we looking at for that because obviously those improvements will have to be made probably sooner than later based on the traffic this is going to generate. Do you have any information on that? Mayor Laufenburger: Okay. Any other comments or questions? Steve Stamy: No, that’s it. Mayor Laufenburger: Thank you Mr. Stamy. Let’s see regarding the economic development for the community. Mr. Gerhardt can you speak to what the current market value of the property is and what’s expected to be based on your projections? Todd Gerhardt: Yeah to create a tax increment financing district first you have to determine if a piece of property is blighted or not and we did a study and the Frontier Building was considered blighted so it qualified for a redevelopment tax increment financing district, and that’s a 25 year district. So today it has a current market value of about $2,200,000 and it generates about $30,000 a year in taxes. Mayor Laufenburger: Total taxes or city taxes? Todd Gerhardt: Total taxes. The City’s portion of that $30,000 is $6,000. And after the development it’s going to have a value of at least $23,560,000. City’s portion of that is about $427,000. No total. The City’s portion of it is about. Mayor Laufenburger: 90? Todd Gerhardt: We’re about 20 percent of the 400 or about $80,000 and they’re going to create at least 50 jobs with Aldi’s so it creates jobs. It enhances the tax base. It gets rid of a dilapidated building that probably had the cheapest taxes or cheapest rents in the area. We were able to keep at least 80 percent of the tenants here in Chanhassen and so that was a goal of our’s. And the increment generated to the developer is $1.3 million dollars and based on the $427,000 the net after the State takes their portion, we contribute to fiscal disparities and to the school district, the net number back is $300,000 so there’s $300,000 a year in increment and the developer is going to get 5 ½ years of that increment and then after that we have in the plan to use $2.1 million dollars of the taxes generated from this project to put towards the upgrade of Market Boulevard. Market Boulevard upgrade is $3.4 million dollars so the rest would be either MSA dollars or municipal state aid and/or assessments back to the benefiting properties along Market Boulevard. Does that answer your question? 66 Chanhassen City Council – July 10, 2017 Mayor Laufenburger: So Mr. Gerhardt I think what you’re saying is, I didn’t do all of those calculations but the development of this, but for the presence of the tax increment financing, the development of this will actually generate an increased property tax to the City. Todd Gerhardt: Correct. Mayor Laufenburger: And our plan is to use that to upgrade Market Boulevard and surrounding roads, is that correct? Todd Gerhardt: Yes. And also to help the housing development become market rate. If you heard the developer, and we did an analysis but for the tax increment assistance they would not be able to build that complex at a market rate level. So we used Ehlers and Associates to analyze their numbers. Their revenue. Their expenditures and based on their return they needed $1.3 million dollars worth of assistance to see the return that somebody would make in an investment in a building like that. Mayor Laufenburger: Alright, thank you Mr. Gerhardt. Thank you to all of the people who spoke tonight and at the Planning Commission. I appreciate the manner in which you present yourself in a respectful way and this is what we should, frankly we’re a little bit of an example that could be followed elsewhere in the country. Todd Gerhardt: Mayor? Mayor Laufenburger: Yes sir Mr. Gerhardt. You want me to get angry at you now or what? Todd Gerhardt: No. No. Full disclosure here, transparency. There are copies of the tax increment financial runs and the City Council is going to hold a public hearing on the tax th increment district on July 24. Some of you may have said how come we didn’t create the tax increment district along with this? We did not want to pre-judge to how the council may come and vote on this project so it would look premature to create the TIF district before you did site plan approval so that’s why it didn’t get done ahead of time. But I do have copies on that table th over there. The schedule is there. It’s a lengthy schedule but the hearing is July 24 in this council chambers at 7:00. Mayor Laufenburger: Mark your calendars folks. Mr. Gerhardt over the last 50 years we’ve been a city how many times have we used tax increment financing to spur and encourage development? Todd Gerhardt: Oh how many times? Mayor Laufenburger: 3? 20? 67 Chanhassen City Council – July 10, 2017 Todd Gerhardt: Every building that you see in downtown received tax increment financing. We created affordable housing at the Gateway project. The West Park you saw earlier. The apartment building to the south. Mayor Laufenburger: On the south side of Lake Susan. Todd Gerhardt: We created a TIF district there to create affordable housing. North Bay housing project down by Lakeside and Bearpath. We created 27 units of affordable ownership housing down in that area. Mayor Laufenburger: So this is a reasonably common practice and in fact it’s governed by State statute right? Todd Gerhardt: That is correct. There is many. Mayor Laufenburger: You can’t just say I want to do one here. There are guidelines that have to follow. Todd Gerhardt: Correct. Mayor Laufenburger: Okay. Todd Gerhardt: And the rules have changed dramatically since Brad and I first started doing this stuff. Mayor Laufenburger: Well that was. Todd Gerhardt: A long time ago. Mayor Laufenburger: Was that in this Julien calendar Mr. Johnson or not? Todd Gerhardt: We age well. Mayor Laufenburger: Yes you do. Alright I’m going to once again thank you for the public comment and I’m going to bring it back to the council for any comments or any motion, action. Councilwoman Tjornhom: Mr. Mayor? Mayor Laufenburger: Councilmember Tjornhom. Councilwoman Tjornhom: I don’t have a comment yet I do but Kate would you mind just reviewing the process that’s going to be happening in the next 4 years when it comes to the 68 Chanhassen City Council – July 10, 2017 vision for downtown? And what we’re moving towards or what we want to work together to create. Kate Aanenson: Yeah if I can just step back a minute. I think one of the questions that was, people got up at the Planning Commission and said we don’t have a vision for downtown but we have been working on it and the library is an outcrop of that. The parkway out front here with the Veterans Monument. The Southwest Transit Park and Ride were all part of the downtown vision. So now we’re continuing to update. We’re hoping to have that done in the next 3 to 4 months. Again that’s working with the property owners in the core of the downtown. Looking at the demographics and kind of some data points and looking at ways to strengthen the downtown. But I also want to add and this is also at the table we put out there the Urban Land Institute. We brought them in in 2012 to talk about, this is a group that’s in the, a think tank that work with cities. Gordon Hughes, former City Manager of Edina was championing it so we had Eric Anderson, Vice President of Ryan Companies. Bill Beard from the Beard Group. Well respected apartment builder and then Anthony Shirtler who was with Springsted Incorporated to look at our city. What our strengths were and so this kind of how we moved towards these apartments downtown because that’s one of the things they talked about is when you have the apartments downtown those people are also spending money in our downtown. They’re shopping. They’re using the movie theater. Going to our restaurants. That helps get some of the other things that we want because we always try to explain to people when we don’t have density there’s a nexus between the number of people in a population, a decision for another user to come in so that study which we’re working on right now and we’ll be talking to the property owners, we’re hoping to have wrapped up here in 4 or 5 months. And that’s just focusing on further development of the downtown core. Councilwoman Tjornhom: And it will be possible for the public to be involved in that? Kate Aanenson: Absolutely, yes. Yes. Councilwoman Tjornhom: Okay. Mayor Laufenburger: You reference a study Ms. Aanenson. You know this is not widely known amongst the citizens of Chanhassen but we have these people come in, Gordon Hughes came in and they created a brief document navigating the new normal and the new normal includes, well economic changes. Millennials, boomers, etcetera. They made some observations but this is one of the observations that they made. Based on these observations Chanhassen may wish to pursue the following ideas. Chanhassen, and I quote, Chanhassen enjoys the many benefits afforded by an authentic downtown. The incorporation of higher density, mixed income housing and potentially taller buildings in the downtown core may be a great approach for attracting new younger residents and retaining existing residents, primarily boomers. How many are boomers? Okay. Who are looking for a different style of housing in close proximity to the amenities offered downtown. This is precisely what Mr. Johnson was speaking to. Density is required to support activity in the downtown area. I want to speak to the Chanhassen Dinner Theater for a 69 Chanhassen City Council – July 10, 2017 second. Yes it’s true that they bring in people by the buses and cars and then they go in and eat and have a wonderful meal and a wonderful performance and they may leave but they remember their experience in Chanhassen and they may come back for other reasons besides the Dinner Theater. And as was pointed out they may stay at a hotel so make no mistake the Chanhassen Dinner Theater is vital, absolutely vital and I applaud those people that had the great vision several years ago to insure that the Chanhassen Dinner Theater did not leave Chanhassen and go to the Mall of America so that was a major, major effort. And not too many people know about it and if you want to know anything about that don’t ask me because I won’t tell you who they were. They choose to remain anonymous. Did you want to make another comment or question Ms. Tjornhom? Councilwoman Tjornhom: No. Mayor Laufenburger: Okay. Any other comments, questions or go ahead. Councilmember Ryan. Councilwoman Ryan: Yes actually I have a question and then a few comments. A couple people brought up about bringing the road into compliance. I think this is the opportunity to discuss is that an option for the developer to make that alleyway, bring it up to code? Rick McKelvey: Thank you Councilmember Ryan. We haven’t analyzed that fully. We certainly can but our intent right now is to utilize the alleyway in it’s current condition. Councilwoman Ryan: Okay so if you say you can analyze it is that? Rick McKelvey: We will take a closer look at it, yes we absolutely will. Councilwoman Ryan: Okay. Rick McKelvey: But I’m requesting approval of it as is. Councilwoman Ryan: Okay so you want approval as is and then you’ll take a look at it and if you decide to do it you will but. Rick McKelvey: Correct. Councilwoman Ryan: Okay. Thank you. I appreciate that. I don’t have any other questions, thank you. So I just wanted to address that. A couple comments. Mayor Laufenburger: Actually could I just pause you for a second? Are these comments related to your views on either approving or disapproving? I tell you, you go ahead. Speak. Speak as you choose. Speak as you choose. 70 Chanhassen City Council – July 10, 2017 Councilwoman Ryan: Thank you Mayor. At the Planning Commission and again tonight the comment about just this district and how it’s zoned, the actual quote was that it’s the most permissive district in terms of development and how, and what can go in and height requirements and whether it’s 77 feet tall or 40 feet tall and what’s going to go in and as Mr. Knutson pointed out we don’t have the discretion to pick and choose. So all those points being true it also is what causes me concern about this development is that this development is really at the epicenter, I mean it’s our downtown. It’s the center of our city and I think that it’s important for us to be you know really thoughtful and careful and intentional with what we choose to have go into this piece of property or any other property in downtown. Later, or after this topic of conversation we’re going to be talking about the Avienda proposal and when that came before us all the discussion at council was and with staff was about how are we going to protect downtown? We have to protect downtown and rightly so because downtown is you know the center of Chanhassen and so if we’re so concerned with how the Avienda proposal affects downtown, I’m equally as concerned about what this development is going to do to downtown. As we just talked about we, a few months or a few meetings ago we approved a contract with a consultant to take a look at this vision study for our downtown and actually in our meeting tonight in our work session it was said that this consultant wants to provide a broader public view versus parcel by parcel as developments come in and that was said tonight and we have you know the work program that’s going to examine existing conditions. Talk about or prepare a market scan. Review demographic economic trends. All the questions that I think are still out there so we aren’t looking at you know just a parcel by parcel but we’re really looking at the big picture of what the downtown area is going to look like. And so I just don’t want to piecemeal downtown together. I want to make sure that this development or any development that comes into downtown is a long term fit. Therefore I would like to make a motion and the motion I’d like to make is that the City Council places a moratorium on redevelopment or development in the downtown district until the vision study is complete and has been presented to the City Council. Mayor Laufenburger: Okay could you just restate your motion? Please, please, please. Could you just restate your motion? Councilwoman Ryan: Yes. I make the motion that the City Council places a moratorium on any redevelopment in the downtown district until the vision study is complete and has been presented to City Council. Todd Gerhardt: I think her motion meant interim ordinance. Mayor Laufenburger: Okay just, so before I ask for a second. Mr. Knutson or Mr. Gerhardt any comments on the motion? Mr. Knutson from a legal standpoint. Roger Knutson: It’s going to be an interim ordinance and it has to be for a specific duration. Todd Gerhardt: So not a moratorium. 71 Chanhassen City Council – July 10, 2017 Roger Knutson: It’s an interim ordinance. You’re moving to adopt an interim ordinance and the downtown area, do you have a definition of what that is? Mayor Laufenburger: Redevelopment in the downtown business district is what I heard you say, is that correct? Councilwoman Ryan: Yes. Mayor Laufenburger: Do we have defined boundaries on the downtown business district Ms. Aanenson? Kate Aanenson: Yes, sure. Mayor Laufenburger: Okay. Alright. Is there a second? Councilman Campion: Second. Mayor Laufenburger: Mr. Campion seconds that. Any discussion? Councilman Campion: I guess I’m offering my second because I do see there are benefits to this proposal. The apartments. The density downtown you know offers a lot of benefits for the other businesses there. But it is hard to step back and look at exactly how this is going to affect everything else when we haven’t completed that study and taken that broader look. And yeah that’s my thought. Mayor Laufenburger: Okay, anybody else? Did you want to say anything else Councilmember Ryan? Okay, alright. I’m going to change this just a little bit so if the motion reads to put in place an interim ordinance, which is a moratorium against, to prohibit any redevelopment in the downtown business district until the vision study previously identified is complete and presented to council. Councilwoman Ryan moved, Councilman Campion seconded to adopt an Interim Ordinance for any redevelopment in the downtown business district until the vision study has been completed and presented to City Council. Councilwoman Ryan and Councilman Campion voted in favor. Mayor Laufenburger, Councilwoman Tjornhom and Councilman McDonald voted in opposition. The motion failed with a vote of 2 to 3. Mayor Laufenburger: Okay that motion denied. Is there any other motions this evening? Councilwoman Tjornhom. Councilwoman Tjornhom: We’re not going to do comments, just motion? 72 Chanhassen City Council – July 10, 2017 Mayor Laufenburger: Well let’s begin with a motion and then we have plenty of time for discussion. Councilwoman Tjornhom: Okay. I’ll make a motion Mr. Mayor. Mayor Laufenburger: Please. Councilwoman Tjornhom: I make a motion that the Chanhassen City Council approves the site plan review for a 134 unit, six story apartment building and a one story 19,000 square foot retail building with a variance for the existing drive aisle widths and a registered land survey creating 3 parcels out of 3, and adoption of Findings of Fact. Mayor Laufenburger: Okay we have a valid motion as brought forward. Is there a second? Councilman McDonald: Second. Mayor Laufenburger: Thank you Mr. McDonald. Now is there any discussion? Mr. McDonald, yes sir. Councilman McDonald: I suppose I should justify my position to everybody. I was one of those persons involved in the Chanhassen Dinner Theater. That was when I first came on council. Mayor Laufenburger: I tried to keep it a secret Jerry. Councilman McDonald: There’s also the story of Burnsville and what was involved in that and Burnsville had built a performing arts center. That was the first place the Dinner Theater was going to and we had to do a lot of persuading at that point to try to keep them from moving. Then came as Mr. Gerhardt said there was the state statute that got in play because the Mall of America got involved and due to legislative support that was killed. That’s what kept the Dinner Theater here but because we kept the Dinner Theater here the Scanlon’s decided you know we’ve had enough of this business. It was running in the red. They weren’t really theater people and they sold out to a group that has taken over the Dinner Theater and really turned it into quite a success. The plan that they have shared with me and the vision they have is they do want to rebuild the Dinner Theater. That will be done on this site. The problem is that costs money and then you know they’re a private company so it’s going to take a while for them to get in a position where they feel comfortable with going with that kind of investment. There’s also another piece to the story that several years ago prior council, we included as a TIF district this entire area and the purpose of that was to help the family as far as development and to sell the property because at that point they were wanting to get out of the real estate business and basically cash in on their investments. So they came to the council and at that point the TIF district was the entire Dinner Theater complex because at that point it was all owned by the Dinner Theater. It was shortly thereafter that as the new management group took over the Dinner Theater and became profitable they did work out a plan to buy their portion of the Dinner 73 Chanhassen City Council – July 10, 2017 Theater which they now own. That’s why you see this development the way it is and why it will abut to the Dinner Theater but the long range plan is they do want to build a more modern, up to date Dinner Theater that will fit into the area and it will become a gem within our area. We could wait and we could wait but we have other developments and again this is important to strengthen the downtown area. To bring people in here which again will bring restaurants. Will bring other retail. The City has been trying for years to redevelop various portions of the West th 78 Street but the problem that we always run into is density. There aren’t enough people to really attract some of the businesses that we’ve been trying to attract so we’ve heard this before numerous times. Well yeah Chanhassen is a great place but you just don’t have the foot traffic. You don’t have this. You don’t have that. So this is a step to start to solve some of those problems so it is part of a long range plan. It is part of a piece of the big puzzle. We don’t need to wait for a study to tell us you need more people. We’ve known that for years. So that’s why I’m in favor of this project. I think what it does it helps to strengthen the downtown area. It solves a number of problems because with Avienda, if they build the way they want to that will take away from the downtown area. That’s a market force we can’t do anything about unless we pre-position things within the core downtown area to again bring businesses here so that’s why I’m voting for this because I’ve run for many years on the fact that we have to strengthen downtown. This does that. It helps to bring redevelopment. It will help to bring other people. It will help to strengthen our city and make it a much more livable place. I guess one of the questions that came up about the you know why don’t we just make the alleyway better. I’ll defer to our attorney but I think I already know the answer. Again if they’re non-conforming and legally non-conforming and don’t touch that alleyway we can’t make them widen it can we? It’s a private road. Roger Knutson: Mayor, members of the council that is absolutely correct. Mayor Laufenburger: Thank you Mr. Knutson. Councilman McDonald: So there’s been a lot of, and I have to get this off my chest because a lot of the emails I’ve gotten and a lot of the phone calls I’ve gotten people seem to think the City can do whatever we want. We can just tell the developer we want this. We want to build it this way. We can’t. This is private property and the problem is, is that there are private property rights and one of the things that the owners of this property have done, they have met all the ordinances. Statutes. Requirements. They have done everything within the law legally to change the footprint of this property. Our hands are tied. As Mr. Knutson said there really isn’t much we can do here and so that’s another reason why I’m voting for this because I believe it is a good project. As Mr. Johnson said this site has been undevelopment for the past 20 years. They have come up with ideas about what to do. What not to do and it always has stopped short of going all the way through development. One of my emails blamed the City for kicking out all the small businesses. The City didn’t kick them out. Their leases expired and the land owner chose not to renew the leases. Fully within the landowner’s rights. We as a City worked with the landowner, with all of the tenants and at that point we found places for all of those businesses to relocate within the city of Chanhassen. We could have lost all of those businesses but we 74 Chanhassen City Council – July 10, 2017 didn’t so we have been actively involved in this project for many, many years. City does everything it can to help and support landowners within the city. As long as they meet our zoning requirements and as long as they meet our rules and regulations they’ll get support when they come to the City. So to sum it up that is why I’m voting for this because it is a legally conforming request before the City and I really have no reason not to vote for it. Mayor Laufenburger: Okay, thank you Mr. McDonald. Any other comments before I ask for the vote? Councilwoman Tjornhom: Mr. Mayor? Mayor Laufenburger: Councilmember Tjornhom please. Councilwoman Tjornhom: Thank you. Thank you everybody for being here tonight. Thank you for the emails, the comments, for caring. I’m going to look at this from a different perspective. I think we’ve already heard from the attorney Councilman McDonald which I totally agree with him but tonight’s a really significant night for this town and we’re all here together experiencing it. Tonight we’re losing a historical part of town our pumpkin patch. Think of generations have gone to get pumpkins with their children. I have and you know that’s now going to be turned over, that land will be turned over into homes and families will be raised there instead of pumpkins and that’s going to be significantly different than what we’re used to. I mean that’s change. I’m going to feel bad driving by and not seeing those signs and knowing that the memories that I have there. The land that once grew hay and corn is now going to be an entertainment, shopping and living destination south of 5. That also is going to be a big change for our community. What’s going to happen there? I don’t know but I do know that we will all go there as a destination, whether it’s to shop. To eat. To just enjoy maybe if it’s approved. I shouldn’t say that. That development and that’s a big significant change for our community and this downtown is a big significant change for our community. If you would walk down the hall there are black and white photos of this community when it first started and I didn’t count but there’s probably 20 homes and a church and I was not here at the time but I’ve heard stories about Pauly’s. Mayor Laufenburger: I think Brad was here. Councilwoman Tjornhom: Okay Brad, help me Brad. Chanhassen has had it’s seasons. It had it’s seasons of Pauly’s and small town and then all of a sudden it got a big box store Target and other stores followed and that was a change for us and now we’re moving into another change and change can be scary because we don’t know what that means. You know I’ve expressed that I’m not sure if the two buildings fit together. That’s going to be a change for me. Something I have to adjust to but I do know that we’re going to have new neighbors and new neighbors that will be loving this community the way we do and I think that’s a good positive change and so that’s why I’m supporting this tonight because like it or not we’re changing and you either have 75 Chanhassen City Council – July 10, 2017 to get in front of it and support it or we’re going to be trying to figure out what to do next so that’s why like I say I will be supporting this tonight. Mayor Laufenburger: Thank you Councilmember Tjornhom. Any other comments? Councilman Campion: Yes. Mayor Laufenburger: Mr. Campion go ahead. Councilman Campion: Alright. So I believe that it’s not government’s role to specifically decide which businesses are going to succeed or fail and as Councilman McDonald stated you know if a proposed development falls within our zoning laws and ordinances we can’t stand in their way but at the same time you know I don’t feel compelled to make special provisions you know for approving variances. For submitting grant applications to the Met Council on their behalf or enabling TIF districts you know for a specific development that aren’t in the best interest, at least in my mind of the City or it’s residents before taking a comprehensive look at reaffirming or modifying our vision for downtown. Now this redevelopment here is going to have a great impact on other redevelopment efforts downtown in the future and I feel like you could look at this property like Reading Railroad in the game of Monopoly. It’s very significant. It’s in the heart and maybe this is the best use for the land. Maybe these are the best zoning you know loose requirements that we can have on this district. But maybe it could be better. Maybe there could be modifications that could make it fit in better to how the whole downtown might be mapped out in the future. We’ve waited 20 years apparently to redevelop this site and I you know am surprised that we couldn’t wait the 3 to 4 months or 5 months to complete that visioning study that we’ve contracted a consultant to perform for us. So it’s for those reasons that I’ll be voting against. Mayor Laufenburger: Okay. Anybody else? Councilmember Ryan. Councilwoman Ryan: Thank you Mayor. I’ll be brief because I explained my concern. I think most people welcome development in downtown. I mean we hear it all the time. Where is the development. We need more people. We need some energy in downtown but I keep coming back to the question well who is Chanhassen and the reason why we’re spending you know $42,000 to perform a vision study is so we can figure out who we want to be in 5, 10, 15 years. Where we’re at today. Understanding market trends and that’s part of the process so when change comes you’re changing for the better and the impact that you have in your community and the surrounding areas has a positive impact on Chanhassen as a whole so I am very disappointed that we can’t take the extra 5 months to get the feedback from the vision process and therefore I am definitely voting no on this proposal. Mayor Laufenburger: Okay, anybody else? Let me just make some brief comments. For me processing this decision, excuse me. Processing this decision is not unlike decisions that I make at council and have for the last 7 years. It’s important to hear, it’s important for me to hear what 76 Chanhassen City Council – July 10, 2017 the citizens say. It’s also I’ve observed over this time that often times the strongest, the loudest, the most emotional, the most passionate voice, and I’m not saying that in this case but often it comes from people who don’t understand the process that we follow. The process of reviewing what we can do legally. What we can’t do. The process of reviewing this plan against our ordinances. City government can be very, very complex and I’m just very thankful that we have people like Kate Aanenson, Todd Gerhardt and other staff who understand and help guide the council to do the things that we can do so that lawyers don’t come after us because we did something that, no offense Mr. Knutson. So the lawyers don’t come after us to say you’ve really done a faux pas and you can’t do that so I’m thankful for city staff. I’m also thankful that by and large developers view Chanhassen as an opportunity. You know Pulte Homes is planning to build 82 units. There’s more developments in process that we can’t talk about because the developer doesn’t want us to share that. Avienda’s another one. West Park. There’s many more but these people. What? Just a little yeah. But people come here because they observe the goodness that is in Chanhassen and the goodness is in our public safety. It’s in our parks and trails. It’s in our downtown area. It’s in our festivals. It’s in our schools. It’s in our neighborhoods. It’s in our families. The character of this community is not wrapped up in one apartment building or one retail store. The character of this community is represented in the people who choose to contribute and make this the community that they want. I processed this decision with 3 perspectives. Number one. The apartments are an approved use in the area. Grocery is an approved use in the area. The current property owner has been trying to sell this property for about 4 years. They have been active in the market to find a buyer. This buyer comes forward with the intent to invest substantially in the acceptable development of our downtown area. It will bring density in close proximity to businesses that want to serve the public and it will substantially increase the tax base of our community by ten fold of this property. The developer has determined there is a demand for their real estate project. United Properties are smart people on these things. The grocer believes that they can be successful by delivering a product and value that they feel is in demand and not currently being serviced adequately at present. Then I ask these questions. Is there anything about these people behind the development that would suggest that they abuse their employees, cheat their customers, conduct illegal or criminal activities on their premises or intend to do any of these things. No. So should government interfere with the property rights of the owner. Furthermore should government prohibit a business from entering our town who has demonstrated affirmatively to number one. Has not shown B, the second one, criminal activities. Should we prevent a reputable business from the opportunity to deliver goods and services while employing people who want to work? Councilmember Ryan I don’t think that we lack a vision. I think we have developed comprehensive plans for this community for a number of years. We’re in the process of doing it again. The fact that we have identified, as Mr. Knutson said, we made a decision on what’s allowed in the downtown area when we put together the business district. The ordinance of the zoning for downtown area. This is an opportunity for this very reputable developer and very reputable retailer to set the standard that other redevelopment may follow. So for that reason I will be supporting this application at this time. 77 Chanhassen City Council – July 10, 2017 Councilwoman Tjornhom moved, Councilman McDonald seconded that the City Council approves the Site Plan Review for 134 unit, six story apartment building and a one story, 19,000 square foot retail building with a variance for the existing drive aisle widths, plans prepared by ISG, dated May 19, 2017, subject to the following conditions; approves a Registered Land Survey creating three parcels out of three; and adoption of the Findings of Fact and Recommendation: Building Official: 1. Accessibility must be provided in accordance with the “Minnesota Accessibility Code” (see MN Rules 1341). Accessible parking must be adequate, dispersed and on located on the shortest accessible route. Residential units are required to be accessible or adaptable in accordance with Minnesota State Building Code Chapter 1341. Further information is needed to determine these requirements. 2. Buildings are required to be protected with an automatic sprinkler system. For the purposes of this requirement property lines do not constitute separate buildings. 3. The buildings are be required to be designed by an architect and engineers as determined by the Building Official. 4. Demolition permits must be obtained before demolishing any structures on the site. Application for such permits must include hazardous substances investigation and proposed mitigation reports. 5. A geotechnical (soils evaluation) report must be submitted to the Inspections Division before permits will be issued. 6. Walls and projections within 5 feet of property lines are required to be of one-hour fire- resistive construction. 7. Retaining walls over four feet high require a permit and must be designed by a professional engineer. 8. Each lot must be provided with separate sewer and water services. 9. The developer and/or their agent shall meet with the Inspections Division as early as possible to discuss plan review and permit procedures. Engineering: 1. The developer must obtain the necessary permissions for the off-site work required to rebuild a portion of the existing retaining wall on the east side of the proposed building. 78 Chanhassen City Council – July 10, 2017 2. The developer shall consult with city staff to determine if modifications can be made to the western entrance off of Market Street to eliminate the current “side by side” driveway accesses. 3. The applicant shall work with city staff and the owner of the property to the east to ensure that tractor trailer delivery trucks can access the Dinner Theater’s loading docks. 4. An encroachment agreement is required for the private storm sewer within the city’s 30 foot wide drainage and utility easement. 5. The applicant must obtain a permit from RPBCWD prior to grading the site. 6. The applicant shall include a cross section of the underground storm water system with the next submittal. 7. A dewatering plan must be submitted prior to issuance of a building permit and shall include a note that city staff shall be notified before dewatering occurs. Environmental Resources: 1. The applicant shall revise the landscape plan to show any existing trees to be preserved. 2. The applicant shall plant a minimum of 28 trees on the site. Fire: 1. Separate addresses for ALDI and Venue buildings are required. Planning: 1. The applicant shall develop an alternate plan to provide residents of the apartment a view of the camouflaged or alternative roof. 2. The applicant shall incorporate additional benches, bike rakes and possibly picnic/cafe tables around the site. 3. Signage shall comply with the CBD sign regulations. A separate sign permit shall be required for each sign. Mayor Laufenburger, Councilwoman Tjornhom and Councilman McDonald voted in favor of the motion. Councilwoman Ryan and Councilman Campion voted in opposition to the motion. The motion carried with a vote of 3 to 2. Mayor Laufenburger: That motion carries 3-2. We’re going to take about a 5 minute break. Bio break and we’ll return. Thank you very much council. 79 Chanhassen City Council – July 10, 2017 (The City Council took a short recess at this point in the meeting.) AVIENDA: APPROVE REZONING FROM A2 TO PUD REGIONAL COMMERCIAL, PRELIMINARY PLAT, CONDITIONAL USE PERMIT, VARIANCES, AND WETLAND ALTERATION PERMIT. Mayor Laufenburger: Staff report please. Kate Aanenson: Mayor, members of the City Council. Let me just get a little bit organized here. That doesn’t look good. I’ve got an extra slide in there. Alright. So the application before you tonight is for Avienda preliminary plat and PUD. This actually went to the Planning ththth Commission a few times. May 16, June 6 and June 20 and now it’s before you tonight for preliminary plat. I’ll go through all the motions in a minute but I just want to remind everybody about this project. So it’s 115 acres. We shown 118 acres kind of gross but it’s a network of 6 parcels and so as you recall we did a, the Planning Commission gave it conceptual approval back stth in November. On November 1. November 28 the council gave it conceptual approval and also ordered the AUAR update. In February the, during it’s work session the council reviewed the significant issues of the Alternative Urban Areawide Review, the AUAR and then on, so we th wanted to explain to you what was in there and then on February 28 we had an open house and th then on March 7 we had a public hearing before the Planning Commission. Again those weren’t required for the update but we wanted to make sure there’s a lot of residents. This is a big project in the downtown to make sure that everybody had an opportunity to comment. We knew traffic was an issue so we wanted to make sure that we could address those questions as th part of the AUAR. Not necessarily a part of the review itself. So then on March 13 you th approved the publication in the EQB for the AUAR comment period and then on May 8 you approved and adopted a final resolution for the AUAR. Some of those findings are also included th in your staff report as they relate to the project going forward. So as I indicated on May 16 we thth had a hearing and then on June 6 and June 20 we also had a public hearing and made a recommendation. The Planning Commission did recommend approval of the project. There’s some different discussions on the Overlay District which I’ll go through in a minute so this is kind of like the first project in the fact that there’s a lot of moving parts. Because you’re doing a PUD and you’re creating a zoning district so you’re rezoning to be consistent with the land use guiding which is either office or regional commercial. In this circumstance they’re going for the regional commercial so that you’re doing a PUD rezoning. You’re approving a preliminary plat, a wetland alteration permit, a conditional use for development in the Bluff Creek Overlay District and variance for construction within the Bluff Creek primary zone. There was a lot of discussion at the Planning Commission regarding the conditional use and the variance and I apologize in the hour of the night we combined both of those motions into one and actually the staff had supported the conditional use of grading in the primary zone. We saw that it was a way to grade to get to some of the units there but we just didn’t want construction in the primary zone so the Findings of Fact for the City Council have been reflected and modified and reflected and those were redistributed and included in your packet. In addition the PUD we had it as an 80 Chanhassen City Council – July 10, 2017 exhibit. It’s actually a part of a PUD ordinance so that was also modified for you. And then finally the conditions for the conditional use permit were also changed and those were also shared with the applicant. Mayor Laufenburger: So Kate I’m going to ask you just for a second for clarity for the council. Can you put up the final action that you’re recommending? Just so we can look at that and understand what it is that we’re essentially evaluating. Kate Aanenson: Sure. I think it’s at the very end of the motion here. Recommendation. Mayor Laufenburger: Okay. Kate Aanenson: So you’re recommending for rezoning from A2 to the PUD Regional Commercial. You’re going to be recommending approval of the subdivision preliminary plat creating 17 lots, 3 outlots. You’re also going to recommend conditional use permit to encroach into the primary zone. That will be for grading and then we’re still recommending denial of the variance and I’ll go into a little bit more detail on that. And then finally we’re recommending approval of the wetland alteration permit and that’s subject to going through the permitting process. And then also the Planning Commission adopt the Findings of Fact and those are the ones that we sent out different because the motion at the Planning Commission was listed. Mayor Laufenburger: So these are the 6 actions that you’re recommending? Kate Aanenson: Correct. Mayor Laufenburger: Okay. Let’s go back, everybody understand those 6 actions? Alright. Thank you Kate. Kate Aanenson: Thank you to Mr. Knutson who helped me revise a few things on Friday. Okay so we went through the summary of the request. So this is the preliminary plat and this is changed from the original one that was going through. This is the 17 lots and, I did this wrong every time. Picked the wrong one. So the lots have changed in this area here and I’ll go through that in a little bit more detail. So Outlot A is where the Bluff Creek Overlay District and that would be the heavily wooded area. The two wetlands and then Outlot B will be preserved as a drainage area. That piece was actually severed by the completion of Powers Boulevard and that’s a remnant piece there. That also the developer can use that for green space as the PUD ordinance allows that. I’ll let the City Engineer go through some of the traffic. Mayor Laufenburger: Okay. Paul Oehme: Thank you Ms. Aanenson. Mayor, City Council members. So the City did complete an AUAR study updating the existing one that was completed I think in 2006 looking at traffic and environmental impacts and other associated impacts to this area. Just wanted to 81 Chanhassen City Council – July 10, 2017 briefly go through some of the findings of that study. One was the potential need for a signal system at Lyman Boulevard and Sunset Trail. It’s shown here in red. New access point where the current driveway is currently located today. The north leg of the 212 loop we’re looking at, the AUAR looked at two through put lanes into the development and reconfiguring that intersection just a little bit. There would also be two left turn, existing two left turns on northbound Powers Boulevard into the development and then the exiting location there’d be 3 lanes of traffic lanes. One for northbound on Powers Boulevard. One for through onto 212 and then one left onto southbound Powers Boulevard. The other items of note, there’s a potential need for a signal at Powers Boulevard and Pioneer Trail in conjunction with this development and then also at Audubon Road and at Lyman Boulevard as well so. That was basically the findings of what we had looked at. I think I covered most of those items so thank you. Kate Aanenson: So this development data then is illustratively showing how the project would be laid out and so this is kind of the genesis of looking to structure the PUD ordinance which talks about which uses can go in there and there’s a lot of back and forth on that. Again trying to create flexibility because we don’t know as we look to the future as this builds out but also have some assurances that we don’t end up with just a lot of big boxes. So we’ve worked through all those issues and those are put into the PUD ordinance. This drawing here has been changed a little bit. I’ll go through that in a minute but this development data then talks about how many square footage of each building and the type of use. So the housing would be the buffer area on this side. We’ve always talked about that as the good transition for the existing neighborhood. The through street connection which is important for another outlet for these long dead ends and also then the extension of Bluff Creek Boulevard. The housing on the southern end, I’ll circle back again on that but that was one of the issues we talked about was senior housing. That we believed that we had a lot of senior housing. We acquiesced on that but we’re still kind of holding firm there on the overlay district. One of the unique attributes of this site then is the housing as we talked about with the downtown project. Housing is going to create the traffic then to help support this. The daytime, night time use of this. There was some interesting comments at the Planning Commission talking about Arbor Lakes saying whether or not because there’s not housing there what happens there in the winter time and how do you keep this a viable project and so we certainly think the apartments and the housing there is important to make this a lifestyle community which is what the goal is. So from that the drawing that they put, we put this in a chart for us to understand the types of uses in there and the square footage and encapsulate that, what we were looking at. What expectations are out there. Again there’s 3 outlots as I mentioned and so one of the things that we also looked at, we assumed under the PUD ordinance that we maybe 20 percent housing but as we looked at that we changed that number to a greater 30 percent so that would allow up to 533 which is this number here. Right now the project is at 364. Again we’re trying to strike that right balance of housing and commercial office mix and there is office on the north side. Go back to that. So this is the daycare. Some offices over here. The restaurants and then this is kind of the urban, really the urban core right in the middle here. The larger grocer, retail, hotel. So again this is more the specifics of that but if some of the housing goes up those numbers shift around a little bit. They’re still within then the PUD ordinance itself. Again the goal, we know some of these uses 82 Chanhassen City Council – July 10, 2017 will change but the goal is that we want to make sure that there’s a good mix and as they do to make sure that it’s a great project. So with that again there’s some wetlands so I’ll let the City Engineer kind of go through the permitting process. Paul Oehme: Thanks Kate. So one of the biggest issues regarding this site was the wetland impacts and making sure that the City’s following the correct Wetland Conservation Act and permitting application that goes along with that. So here’s illustratively the drawing showing where the wetlands are on site. The ones the areas in yellow are kind of the wetland delineated locations for the wetlands and most of these would be impacted by the current development. The background for this and the timeline where we are today, the applicant has submitted wetland replacement plan back in February of this year with preliminary storm water modeling st information back in February 21 of this year. The City determined the application was incomplete at that time. We reviewed it and then made comments back to the applicant. The th applicant turned around and gave us some revised information back on March 14 as well so th what we did then was, the City determined the application was complete on March 17. A Wetland Conservation Act notice was, application was sent out to the Technical Panel on March thth 17. There was a meeting held for that and then also on April 6 the US Corps of Engineers had a meeting too and they reviewed their application and requested additional information at that time. Here’s the proposed, here’s a list of all the wetlands on the site and which total 5.2 acres and then putting the potential impacts associated with this development are shown here in a little over 4.4 acres. So with that the proposal, there is process for working through the wetland impacts for the Wetland Conservation Act process. The land development plans submitted to the City after the wetland permit application was submitted has discrepancies that we had already talked about and the wetland impacts. The applicant shows wetland impacts to Wetland 4 but they’re wetland development plan does not show the impacts on some of the other locations so those were the changes that we had requested. Bottom line that the analysis shows that you know the City is not the determining body for determining if the applicant has gone through the sequencing for the wetland impacts. That’s provided by the TEP and the TEP is going to be meeting here shortly to review that application. The functions and values are shown here. I don’t want to get into too much detail. This is just showing you what the wetlands are. How they’re managed. You know how you can mitigate them and those type of things. The current wetland mitigation is shown here. What the applicant can do so one of the first thing in sequencing is to try to figure out can these wetlands be mitigated on site. And with the high density that’s currently proposed on the site, there is very little opportunity to mitigate those wetlands on site so we look at replacement in the sub-watershed. In this case the Riley- Purgatory watershed district and we were not able to find any suitable location for mitigating the wetlands in this watershed district so we’re looking at right now, the developer is looking at purchasing wetlands outside of the watershed district in a wetland bank and in looking at mitigating the wetlands through that process so that’s where we’re at to date. And the developer has the opportunity to do some combination of mitigation or on site wetland mitigation but under this case I think it’s going to be more feasible for him to mitigate off site. One of the things that the City has requested that the applicant look at is try to work with the City on a joint project within the watershed district to improve wetland quality in the area or storm water improvements 83 Chanhassen City Council – July 10, 2017 within the watershed district. Unfortunately we haven’t come to an agreement on what that project would look like or a feasible project at this time so in the staff report we requested that the developer look at contributing a sum of money to the City for future project to be named later. That can improve the water in this watershed district to service in lieu of the impacts to the wetlands that are being proposed on this site. So again you know the US Corps of Engineers has reviewed the application. They’re ongoing I think. The developer has, the applicant has made, given the Corps some additional information so they are currently reviewing that application. There’s really no time line associated with that application so that’s going to be kind of ongoing. As I mentioned before the Wetland Conservation Act process, our TEP meeting is going to be held tomorrow so there’s going to be a 60 day decision making process after that point in time and a decision has to be made at that point in time so. With that I think here’s the next steps that we had talked about previously. Again the wetland mitigation has to be completed. If it’s off site at a 2 to 1 ratio so there’s going to be a substantial bank that the developer would have to apply for and create those wetlands with so. And then we’re basically just waiting for the TEP panel to move forward and hold that meeting. See if they have any more information or request additional information from the applicant and like I said they have a set, I think 60 days after that meeting to make a decision. Kate Aanenson: Thank you Paul. I just wanted to add one thing too. What the City Engineer was talking about. This came up at the Planning Commission where we were spending some time talking about the fact that all the wetland replacement was being done outside the city so the Planning Commission felt it was really important that some improvement be made within the city as Paul indicated. The city and the watershed district. While we don’t have a proposal right now for a live project there is a condition of approval that cash escrow be put in place that as we move forward that that could be done. So Bluff Creek Overlay District is one of the issues that we’re still trying to reconcile. Again those two conditions got kind of comingled at the Planning Commission but we recognize that there could be some grading in there. We had a road going through at one point. A fire lane. We acquiesced and took that road out because that was one of the drivers for the big impact. Obviously there’s some impact grading within to get the road to go through on the easterly edge so quite a bit of the removal so then we were up to the 3 acres. Then the developer re-examined the site and actually went back and took another look at how they could make it work so this was a reconfiguration of the senior housing. As I mentioned earlier one of the concerns that we had is we do have a lot of senior housing going. The developer felt it was really important to, so we had that first on our no list. We took it off but then we felt like we were squishing something in there that was a little tight so we still wanted to work with them on that and felt like if they could be grading in here to get there. There was a lot of parking. There was discussion on the right amount of parking. Obviously we want it to be successful for both parties. There’s a lot of parking on this site too so we really wanted them to take another look at that and felt like they could work within that. I’ll let them address that but I would like to just show you, I know it’s late but on this doc cam here because Sharmeen put this model together and I think it’s just more illustrative way to show you the entire project so again. So this is the project as it came in so the, there was a hotel over here. And so this is the Bluff Creek Overlay, the original buildings. It went way into the Overlay District itself. 84 Chanhassen City Council – July 10, 2017 Mayor Laufenburger: Way? What do you mean way in? Kate Aanenson: Well like 5 acres. 3 acres. So we went and asked them if they could take it out of the Overlay District so this would be the Overlay District and the response came back they actually eliminated part of a building so in their best efforts which we appreciated. They did work to redesign it. Again the Bluff Creek Overlay District is still within this area. They moved, so they cut off some retail space and then they moved the hotel over to here. So the question was then could we still try to work to make this building fit and we know that for our senior housing, especially assisted that the wings have to be a certain length so people want to be able to get back and forth. Understand how that works and going back to saying that maybe that wasn’t the best suit and you know their position we’ve always shown it there and but it’s still a process to get a variance as it is a process to get a wetland. It doesn’t give you standings so we’re still trying to work through those issues on the design itself. Mayor Laufenburger: Kate part of one of the conditions or one of the recommendations you’re making is that we grant a conditional use permit in the Bluff Creek Overlay District for the road, is that correct? Kate Aanenson: That’s correct. For the road and then to grade to get into this. So if you stay outside of that blue line you’re in the secondary zone which you can grade within. Because by putting this in there’s two substantial walls in here now to get up to this. This is a wetland. When you walk the site there’s water coming out of that wetland that drains so if you’re putting up 2 walls, and we’re just trying to see if there’s another way to make that work. And so obviously for them trying to get that to fit on the site is more challenging. Mayor Laufenburger: So we’re talking about this particular space. This southwest corner of this property. Kate Aanenson: Correct. Mayor Laufenburger: How many acres are in the Bluff Creek Overlay District? Kate Aanenson: Up to 3. Mayor Laufenburger: No how many are in the Bluff Creek Overlay District in that area? Kate Aanenson: I’ll go back to my original. Thank you, 18. Mayor Laufenburger: So 18 acres here is in the southwest area? Kate Aanenson: Yep, correct. 85 Chanhassen City Council – July 10, 2017 Mayor Laufenburger: Okay. And what we’re seeing here is the upper border of the Bluff Creek Overlay District is the blue line, is that correct? Kate Aanenson: Correct. This is the primary and that’s the secondary so you can grade, and that was what the conditional use is for is to grade within that. So our position was can you reshape that building? Can you flip those buildings? And so I mean obviously they have their concerns on that too. Mayor Laufenburger: Okay. Kate Aanenson: You know other thing just looking at the woods itself the Overlay District is for, you know as the City Engineer talked about it’s for the impaired waters and the Bluff Creek and this is a wooded area that’s unique attribute to the city. John Tietz on the Planning Commission is a landscaping architect. You know once you start putting a road in, which is why we acquiesced, then it changes the whole character of, by the time you put the retaining walls and all that. Mayor Laufenburger: Wait a minute, when you say we acquiesced on a road. What are we acquiescing? Kate Aanenson: The connection road here. Mayor Laufenburger: I thought you said we took it out. Kate Aanenson: I did. That’s what I said we took it out because of the impact of putting that in with the retaining walls. Mayor Laufenburger: Oh, okay. Okay. Kate Aanenson: So we’re just saying we’re trying to work together to do as minimal impact as we can. Mayor Laufenburger: Gotch ya. Kate Aanenson: So my point on this slide here is that we think it has too much parking for that type of use and could we shorten up the driveways? There’s a lot of things we can look at there and we’d like to see take another run at it. Obviously they worked hard to get it to this position and maybe they feel like this isn’t working. They want to go the other direction but we felt strongly about saving more of the Bluff Creek Overlay District. So this is the two retaining walls going back up along that trail where we just saw. So these are these two retaining walls here. So again adding more retaining walls so. So this is the CUP. All the conditions in the staff report. Again we supported the conditional use for grading but not for construction which is the variance. We recommended no on the variance for construction. Yes on the grading within that. 86 Chanhassen City Council – July 10, 2017 One of the other issues that came about was the Fire Marshal’s concern about the traffic calming. They spent a lot of time on putting together, hiring a consultant to traffic calm. That was one of the biggest issues facing the residents is they wanted to make sure that people didn’t speed to get through their neighborhood and so we all worked together and we had a great design. Planning and engineering was happy with it. The applicant was happy with their recommendations and the Fire Marshal wasn’t too happy with the recommendations so in your staff report we, it’s the stopping on the street issue. If everybody was, a fire truck’s going and people stop on the street so we’re all smart enough to figure out how to make that work so we’ve got a condition in here that we’ll work together before final plat to get that design figured out to the satisfaction because the Fire Chief isn’t going to design that. That’s going to be between the applicant and the City Engineer to figure out that right fit. Changing the approaches. The median. We really felt the median because that runs the length of that whole, it’s part of that traffic calming and the nice aesthetics so we’re going to work hard to see what we can do to get the road width that meets the Fire Marshal’s concerns. Makes the developer fit their design and the neighbors traffic calming issues. Mayor Laufenburger: So you’re talking about this, this is something that is yet to be decided but the council is not making this decision tonight. Kate Aanenson: No we have it as a condition that we’re going to continue to work on it. Mayor Laufenburger: Okay. Kate Aanenson: So there’s two outstanding things. Mayor Laufenburger: Okay and eventually that condition will be resolved right? Kate Aanenson: Correct. Correct. Mayor Laufenburger: Okay. Alright. Anything else Kate? Kate Aanenson: Yes. So this is the other retaining wall so on the back side, so when you’re looking to the west there’s significant retaining walls on, this would be looking to the north. Excuse me on the south looking to the north and this is on the north side looking south so this would be the daycare has a retaining wall and then the office buildings so you’re putting retaining walls on either side and then grading through the middle to balance out all the dirt between and filling the wetlands that were in there. So again our concern is making sure that we have the right walls in there. We weren’t clear at the first meeting, this is some of the information as we moved through the different iterations that the wall on the back is two tiered with landscaping. I think that was one of the things, the view we were concerned about. I’m not going to show the slides. I think you have your slides of the wall just to make sure, because you have a tall building. The grocery store will be very tall so you have just a large wall and what are we doing to break that up especially when you have parking or loading docks in the back of 87 Chanhassen City Council – July 10, 2017 that too just working through those design. And to be clear on that every building that goes in is going to have to come back through the process too so we’ll see site plan review on each of those so what you’re approving now is the framework that each of the projects as they come in will be measured against. So I’m going to skip through those because I think the applicant’s going to spend a little bit more time on those kind of going through the walls. So the district master plan, so this was helpful for us. How the developer put it together. So each of the areas are described by district and that’s how we kind of put the PUD ordinance together and that includes the sign package and then the uses itself. So the multi-family we talked about. That’s the senior housing. Independent and assisted. Lower density housing. Again those numbers can change a little bit but we wanted, we always committed to the neighbors that that would be a nice transition in there. And then office, daycare, more office, restaurants and then the retail hospitality where the grocer will be. Probably some drive thru’s. We also limited the number of drive thru’s so there’ll be two at the grocers and they can pick two other places. And then the retail district which is really more the pedestrian oriented which also includes the apartment with retail attached to it. And then there’s also more, a large retail around the perimeter. So this is also included in the PUD ordinance and then it talks about what uses will go in that district because again for transparency on both parties we want to see it be somewhat, when the projects come in that they match this. So again the PUD zoning, this is the rational basis for that so putting the PUD, you know you’re preserving something to get the PUD zoning. This gives you more flexibility so they could transfer the hard cover so the treed areas that are preserved counts for the green space. That allows them to put more intense development. I think the challenge there is for them to manage all their, with their packed soils to manage all their storm water so those are some of the issues that we’ll have to work out as it goes forward. I also wanted to remind you that this is in a rural service district. On your next meeting we’ll be putting together a resolution and a report that takes it out of the rural service to tax it at a different rate because now that this project is going forward and the County changes those the first part of August so you’ll be getting a letter from the property owner saying that they will be taking you out of the rural service district. So with that I kind of jumped through a lot but I know the applicant probably wants to, I went through the motions. I’ll let him go through then I’d be happy to answer any questions. Mayor Laufenburger: Okay. Kate Aanenson: If you want to take some now that’s fine. Mayor Laufenburger: Anybody have questions of council right now? Mr. McDonald. I mean excuse me, questions of staff. Well you could ask, talk amongst yourself Mr. McDonald. Councilman McDonald: Kate I’ve got a question. Yeah go back to that first one where you’re asking us to rezone. What did we do? I thought it was dual guided. Wasn’t that part of rezoning or was that just a guiding? 88 Chanhassen City Council – July 10, 2017 Kate Aanenson: Sure that’s a great question. So it was guided. You could choose either one. It gave you the flexibility. If someone came in with a lifestyle center or something you didn’t like and that was the conceptual approval is to say in good faith we’re both going down this path that we’re going to continue to develop this. We’re going to go through the AUAR and part of the AUAR also states that we’re going to follow the rules of the City so everyone’s moving forward in that so the office is no longer the potential so regional commercial is a land use that is approved so that’s the zoning that you would be applying. Councilman McDonald: Okay so we finally made a choice as to which way we want to go. I mean you’re asking us to zone it that way. Kate Aanenson: Correct. And that’s what the PUD ordinance is and that spells out all the uses. I think I lost part of my staff report. The other thing is we wanted to make sure is that you knew that there was a few things that we’re still working on. We talked about the roads. The wetlands we’re still working through. We have a TEP meeting tomorrow and so there’s a couple outstanding issues that we’re still working through but we’re pretty darn close so. Councilman McDonald: Okay, thank you for that. Mayor Laufenburger: Okay, any other questions of staff? Councilmember Ryan. Councilwoman Ryan: So does that include, when you said you’re still working through some details with the storm water management, that’s also just because when I was reading through all the different attachments it talks about the irrigation system. Has that been revised? That some of the designs don’t meet the Riley-Purgatory so are those all the pieces that you’re still working on before it comes back? Kate Aanenson: Correct. Yep, yep. So watershed district approval. Looking through the storm water. So the goal is to, for them is to get the approval. They can’t do any grading until they get the wetland approved so to work through those processes. Come back with the final so they can begin to grade. I think they’ve stated that from the beginning their goal is to try to grade yet this year. Councilwoman Ryan: Okay. Kate Aanenson: So it’s onus on them so a lot of this is their marching orders that they need to do to keep the project moving forward. Councilwoman Ryan: Okay so all those approvals have to come back to you before we move forward. Kate Aanenson: Correct. 89 Chanhassen City Council – July 10, 2017 Todd Gerhardt: Mayor, council. Mayor Laufenburger: Anything else, yes. Todd Gerhardt: Just to complicate things. Item E, since we don’t have the wetland alteration permit approved yet should be eliminated and we would bring that back as a part of the final plat if we have the wetland alteration permit completed by then but we don’t have the wetland alteration permit approved by the TAC board yet. Mayor Laufenburger: TEP. The Technical Evaluation Panel. Todd Gerhardt: TEP, yeah. Mayor Laufenburger: That’s tomorrow. Todd Gerhardt: Yeah. Mayor Laufenburger: So are we delaying this by not putting approval on this? Can we put our approval subject? Todd Gerhardt: You can do this. Roger Knutson: You could approve it subject to their… Mayor Laufenburger: We could approve it subject to approval by the TEP. Todd Gerhardt: Yep. Mayor Laufenburger: So that means it doesn’t have to come back to us again. Kate Aanenson: That was always. Mayor Laufenburger: We accept this. Kate Aanenson: Right, that was always our goal. We’ve always been working towards that and I’m sorry I didn’t put that. Mayor Laufenburger: Bring that page up again. Kate Aanenson: Yeah I’ve just got to type it in here. Subject to. Mayor Laufenburger: Subject to approval by the TEP. 90 Chanhassen City Council – July 10, 2017 Kate Aanenson: Isn’t it WCA? Mayor Laufenburger: Well she’s doing it right now so change it to what it’s supposed to be. Paul Oehme: WCA. Kate Aanenson: WCA. I got it. Todd Gerhardt: And then put the same thing at the Decision portion. Mayor Laufenburger: Wait a minute. What is it? Is it. Mark Nordland: It’s WCA. Wetland Conservation Act. Kate Aanenson: Thank you. We got it on this side, we’re all good. Todd Gerhardt: And Kate if you go to the Decision portion. Kate Aanenson: Yep. Oh City Council thank you. Todd Gerhardt: Add it there also. Kate Aanenson: That should say City Council too correct. Todd Gerhardt: In the Findings. Roger Knutson: In the Findings of Fact, in the Findings of Fact will have to be amended to say the Wetland Alteration Permit is approved subject to the findings of the TEP. Kate Aanenson: I got it. Mayor Laufenburger: I’m interested in hearing from the applicant unless there’s any other questions of staff. So let’s hear from the applicant. Are you charged up Darren? Darren Lazan: Yeah, fired up. I was reminded by Mr. Akradi to ask which version of the presentation you wanted. Kate Aanenson: I got the right one up. Mayor Laufenburger: People all over the world. Darren Lazan: No I meant the short version or the medium version or the long version. 91 Chanhassen City Council – July 10, 2017 Kate Aanenson: Oh okay. Mayor Laufenburger: People all over the world are watching this. Darren Lazan: I understand that. Mayor Laufenburger: So just keep that in mind. Darren Lazan: So Mr. Mayor, members of the council my name is Darren Lazan. I’m with Landform Professional Services and I represent Level 7 Development, the applicant on the item before you tonight. It’s a tremendous pleasure to be back here again. I was going through doing the presentation this afternoon realizing that for my part my work began on this site in ’14. This team in ’16 I believe so we have a tremendous history on this site but as I went through this I realized that your staff and yourselves have an even longer history and for many it’s been good portions of their career looking at this site and trying to contemplate what belongs here and what’s the best use and fit and as a team we’re very excited to play a part in helping that vision come to life so we’re excited to be here tonight and look forward to answering your questions. So I will go through this quickly. What I did is I put a pretty small subset of the slide show together and now I’m even more glad that I did but I’m also going to move through it quickly and if you have questions we can come back and zero in on it. I kind of hit the pieces I think you folks have commented on in the past so I can address those. Mayor Laufenburger: So just let me stop you a second. There’s a question that I want to ask you. Do you have a clear understanding of everything that’s in the packet? Darren Lazan: We do. There are a number of things that we are going to work on going forward so unlike most approvals when we can say we agree with every condition in the staff report, there’s a number we’re still working on but we understand everything in the report and we’re comfortable that we can move forward… Mayor Laufenburger: What’s most important for me, and speaking on behalf of the council is, if there’s any decision that we’re making tonight that you want to raise, that you have either disagreement with or an issue with you need to tell us that. Darren Lazan: We will and we, I may have some. Mark’s going to have a close at the end and lay those out cleanly for you so we can have that. Ownership team here, I think you’ve had this presentation in the past and now with Mr. Akradi in the audience it’s going to be more difficult to say this but I can tell you it’s been a pleasure to be on this team. Mr. Akradi’s drive for excellence on this is a real challenge for us and we enjoy that push. As most of you know this is a project he does not need but it’s amazing to us that he continues to take the time to be involved and help push this project along and make it what it is today so great group of people. Great team and we look forward to the next stages with you guys. And again this is a little excerpt from the Business Journal as well. A little bit about the vision he has and we’ve tried to carry 92 Chanhassen City Council – July 10, 2017 out for an excellent project with a full life cycle component. Something that’s timeless. Something that has very high quality and something that he can be proud of in 50 years when he comes back through here again and decides this is his best work so again he’s that force. We keep driving to achieve that and we’ll continue to do that. Existing site Kate went over and we’ve been over a number of times. You know where it is and those constraints so I’ll move through quickly. This is a fairly new exhibit. I just want to spend a couple seconds on this one because it effects those components such as retaining walls and grades and approaches and what can work and what can’t. This is kind of a sensitivity map showing the elevations on this site and there’s 72 feet of relief across this site. Both east/west and north/south so it becomes a tremendous challenge to get all the components of this site to fit in here and connect to each other and stay connected and we know that connectivity is a big component of a lifestyle center so it involves quite a bit of grading. It’s quite frankly driving the viability of preserving wetlands and working through that process. It effects the grading and how we manage those retaining walls and so forth so went through this in a little more detail at Planning because they asked that question but it is interesting to note the amount of grade we work with across this site. Kate went over the districts. They’re very important in the design and documenting the design standards and so forth so we’re carrying that through in all of our efforts as well. Site plan here. You’ve been over. Kate went over. We’re excited about where this sits today after a lot of work, both on our team and with staff. A lot of back and forth but we’re excited for this plan. We think those components that have been addressed already, the residential component in the center inserts that vitality into the middle of the project. The full life cycle with seniors, empty nesters, millennials, all the way across the spectrum in the project. Here in the morning. Here at night. The office mix across the north with a daycare on site. These are all drivers that help those retailers be successful and without boring you to death that’s the challenge with retail today is to try to find a way to make it experiential. Desire to be here. Put bodies in the center in the mornings when they leave for work. At night when they come home. During the day when they’re working and we really think this does an excellent job of that which was the goal of the comp plan. Little bit about the roadway. It was touched on so I’ll skip most of it but we did put a great team in addition to our core team on this. Toole Consultants came in and helped us. They are a traffic engineering group that specializes in pedestrian lifestyle center type work or urban type work. We brought them in specifically because we heard throughout the process that traffic was the number one concern of the neighbors. We wanted to work on calming on this road. A couple of those components you’ve heard from already. The lane width and the medium helps slow those cars down. But also even in the pedestrian components, the top half of this image shows shorter crossings for pedestrians. Areas of refuge between crossings where they can stop. Let cars go by and go again. This was all very thoughtful in the process and both engineering, planning and our team I think put a lot of work into this. There’s a memo in the application about how we arrived at this balance of traffic calming and through fare and emergency access and so forth and I think this was an incredible well balanced approach. Mayor Laufenburger: And this road complies with requirements is that correct? 93 Chanhassen City Council – July 10, 2017 Darren Lazan: This road complies with requirements. It’s a continuation of what you have as a section in the remainder of Bluff Creek Boulevard. We took our cues originally from that. Mayor Laufenburger: Okay. Darren Lazan: Carried it through. Meets all the requirements for stacking and turn lane distance and all those components. MSA standards. Everything across the board so we look forward to working with the Fire Chief and the rest of staff on coming up with something everybody can live with. I think one quick important note, when you look at the lane width requirement and the stopping the portion of this road that is effected by that is roughly a third. Maybe less. Maybe closer to a quarter because we have turn lanes right. Turn lanes left. Roundabouts. Two lane sections in that run of Bluff Creek Boulevard so the area that actually is constrained is not that entire run of roadway and we think there are things we can potentially do in those few sections to help that. It’s also important to note that there is access to every other component from other entrances. From the north and otherwise so we look forward to working with staff on resolving that. We have a great design. I think we can make a few changes and get there. Very briefly about project branding and identity. Again this is going to carry through in architecture, signage and the identity of the project. All 3 of those have been very tightly coordinated to deliver a very quality project so none of those really stand on their own. The signage is part of the identity. The architecture and landscape architecture fits in there. These are all very tightly coordinated and that will show in a lot of the components as we go forward. We submitted quite a bit of material on architectural standards and sample elevations. That was in your packet. I haven’t put that in the presentation tonight because I think this is fairly new. I wanted to focus on the village tonight to walk through this component and the walkability lifestyle components so you can get some better imagery of where that’s at so as we walk through this from east to west, it starts with an aerial view showing the long corridor. Starting with the water feature and the open plaza between the restaurants. Continuing all the way through that center portion and ending at the far side with the apartment project as the anchor on the far end. As we get down to street level on here, this is the plaza between the restaurants. Program space. Casual space. Active space. All of that possibility can exist in there to engage that space and make it useful and vibrant and make folks want to be there. Another picture on the, some potential for outdoor dining in that same space adjacent to the water. We have more active spaces as we travel down now. We’ve crossing the street, Avienda Parkway and we’re on the west side now. Beginning of that main street component. We have pieces of this project where we introduce these open pocket areas of landscape architecture to create engaged spaces and we’ll see those at a couple different levels. There’s some adjacent to the potential shops and restaurants along the way. Some like out at the roundabout where there’s a water feature where it can be a little bit more distant from the roadway in the center but it’s still very well landscaped. Beautifully done. Hardscapes and again active engaged spaces as we’re moving to the middle of the block. Each of these end caps on these small buildings have opportunities for more of these spaces to create programmed or casual spaces. Outdoor dining. More outdoor dining in there. Then we land on the other side of the main street area. The village area where we have probably our largest open amenity space with a water feature, landscape components. This could be more heavily 94 Chanhassen City Council – July 10, 2017 programmed spaces as well as space for the adjacent retailers. Another view at street level there. The first one was an aerial, with the apartments in the background. And again on the back side more spaces adjacent to that apartment component as well. And then as Kate had mentioned we have some retail on the ground floor. That’s the end of that run looking at the front doors to the apartments with some ground level retail and some more landscape areas on that piece. And then the last staff report has a condition that we provide the trailhead connection for future natural trails so we did a quick rendering on what that might look like so you’re leaving the trail along the side of the road and move into more natural trails but some way finding, landscape features and a connection to that Bluff Creek space there as well. Environmental items for Councilmember Ryan. So I have 3 slides on the environmental components. First is storm water. I want to talk about that a little bit. We looked at deploying a number of components to meet the storm water requirements. As you know it’s heavy clay soils. Little to no infiltration and we have very heavy storm water requirements to abstract or remove storm water from the site and not allow it to leave the site. One of the ones we’re most likely to deploy to get nearly all of the required abstraction is an extremely extensive use of permeable pavement systems. Probably the most extensive done in the metro area. I think we have 15 acres of permeable pavers and 20 something acres of rock retention areas under those. Pretty extreme measures to meet those criteria. Similar projects in Chanhassen on similar soils have gotten about half the requirements. We’re hopeful we can get to all the requirements with this project as kind of a demonstration piece of this used on this scale. Mayor Laufenburger: You said something below the permeable pavers. Darren Lazan: Rock retention, yeah. So there’s rock beds below the permeable pavers and then drain pipes that drain that rock bed over time so yeah. It’s clearly the most extensive use of permeable pavers we’ve done. I don’t know if Paul’s seen a more extensive use ever. We haven’t so it’s a pretty aggressive piece but I think it stands as a testament to the effort we’re going to look at putting forward on this project to meet that criteria. We also have that re-use rain water component. Collection. Recycle water using best practices to re-use that to the extent possible with the quality of visually appealing treatment areas. We can use rain water harvesting purple pipe irrigation for areas where that makes sense and planted basins where we can take advantage of that bio uptake so that’s in addition to the permeable pavement systems. Those two together we’re pretty comfortable we’re going to meet the criteria so. I think it’s important before we move to the wetland piece to talk about this. This is still in concept because we have to make our watershed application for the storm water approval. We’re going to roll these out. We’re going to present those. We’re going to make our best effort at meeting 100 percent of the criteria but there’s always and will be give and take with the watershed as to what that looks like. How much of each of those are used and how they’re used and so forth so this is a process like the wetland process. It’s kind of running parallel right now so we’ll, all of our approvals tonight are subject to getting our watershed approvals so we’ll be working on that in the weeks to come. On our wetland side as Paul walked through in detail. I’m going to go through very briefly. We have this concurrent process of the Corps of Engineers and the Wetland Conservation Act which you folks are the local government unit on behalf of the Wetland Conservation Act so you’re 95 Chanhassen City Council – July 10, 2017 running that piece. The Corps is running the other. That’s going to result in, if we’re fortunate enough to be approved a 2 to 1 replacement and we get in a unique situation because the Corps involved. It’s almost determined that we’re going to end up doing Corps certified credits. It’s almost impossible to do anything but that. They argue for it. They want it. They certify the bank credits that they’ll accept so once the Corps steps in and both the City and the Corps are involved, we get pushed to this bank credit scenario as a default and almost the only solution. But a lot of great questions were raised during planning and again even when we first started this project. What’s available in the watershed? What’s available in the city? And it came up again so as Paul and Kate had mentioned we were presented by staff the opportunity to participate in a contribute for demonstration project that would help mitigate the function and value that you’re losing in the city and we’re happy to contribute in that form. We were from the beginning and I think this is a great vehicle. I don’t know any other community that does this and I think it’d be a great model going forward because whenever we have these Corps related permits you’d have the same thing. All the mitigation happens outside your community and I think this is a great piece. I think we look forward to working with staff to try to quantify what that contribution is and help set that structure up and make that contribution. We’ll go quickly around the perimeter sight lines. Main entrance off of Powers and the 212 exit with the branding and signage architecture showing at that corner. This is from the Powers overpass over 212. You can see that it’s an effective exhibit because it shows how quickly that giant wall disappears from a distance but there’s a fair amount of existing trees at the base of that wall too that screen that wall so really the entire western half of that wall is pretty well screened from this position here. And then you can see the building does stick out from the top and this is the view from eastbound 212 where you get just a slight look at the very end of that wall and the rest is pretty well screened with existing vegetation so I thought it was important we show these elevations as if you’re standing at the base of the wall but as you’ll see from the sight lines they’re pretty well naturally screened and then as Kate showed in her presentation we’re showing a terraced wall and plantings at mid wall. Plantings at the bottom and so forth to further screen that. This is from the neighborhood to the south looking north. That was a question amongst many residents. Again it’s certainly don’t 100 percent screen but it’s substantial screening from this position. This is the approach up Bluff Creek Boulevard so you’re heading east on Bluff Creek Boulevard and those are existing homes on the right and left and you see the first sight of the senior project in the background there. And this was from the existing neighborhood to the west, looking across that small wetland at the taller structures. This is coming around the north side looking across Lyman. And then from the corner here as well. And these weren’t meant to be your high quality renderings of what the architecture looks like. Those were included in the design guidelines but we wanted to walk the perimeter and those important approach angles and show you what that look likes for scale and that’s the purpose of walking through those. We have project signage goals and Mark’s going to finish on this item but wanted to just briefly go through these. The purpose, our goal and the purpose was to provide a comprehensive package to approach this project. That that be appropriate for the size and scale of this project. That it support the retail vitality and that it be appropriate for the interactions with the public so where you have major entrance points, you’re arriving by car the signage gets bigger. When you’re down on main street we use projection signage and smaller scale signage so those are some of 96 Chanhassen City Council – July 10, 2017 the goals that we went through when we proposed signage. That’s made up of identity signs, tenant signs, way finding, all of those signage components. They’re broken down by district so there’s appropriate signs in each of those districts. And then building signage I think we’ll probably just touch on this for one second because this is in the staff report but we’re proposing pretty significant four sided architecture. We have four sided design and that we’re parking on the backs of buildings and walking to the front of the building. We feel it’s important that we look at signage that’s appropriate on all four sides. Again staff’s recommendation differs from our’s. We have a complete breakdown on where those are and I think Mark is going to talk a little bit about our approach on signage but we just wanted you to know that we worked through this on a comprehensive level from every aspect district by district and so forth so with that we have 4 key items that Mark’s going to go through and we’ll stand for questions after that. Mark Nordland: Mr. Mayor at the beginning you asked if we were okay with everything that was in the staff report and just to kind of break things out. We’ve heard you know exhaustive reports on where we’re at. There’s 4 items I just want to talk to quickly that we’re still working on with staff just so you don’t, you’re not surprised later on when we come up. The first of course is signage which is what Darren was just talking about. They’re four sided buildings. We need to speak internally once you’re inside the development but also externally when you’re on the freeway and you’re trying to find the site. We’ve talked to staff quite a bit about it. It’s a unique development and we’re trying to come up with something that will work for everybody. I’m confident that we’ll be able to work through that as we come through for the final plat and be able to come up with a solution that everybody agrees with so you will be seeing that again. We are not fully in agreement with what the staff report says but we feel confident that we’ll be able to work it out with them between now and. Mayor Laufenburger: But that’s not something that we’re deciding on tonight. Mark Nordland: You’re not deciding on it tonight. Kate Aanenson: …because it’s in the PUD ordinance so I think there’s a, if we’re changing a lot of things then we want to make sure we get it right in the PUD ordinance so we would, I think what we should do is get a list of all those. Get some direction from the council and then get the ordinance correct and come back with that in 2 weeks because we have to come back with the rural service district. Todd Gerhardt: Once you approve the ordinance it’s very difficult to change it so we want to get it right the first time. Kate Aanenson: I thought we had til final plat too so yeah. Mark Nordland: Yeah we discussed we can’t wait til final plat on the signage. Kate Aanenson: No. They want to put it into the PUD ordinance. 97 Chanhassen City Council – July 10, 2017 Roger Knutson: Signage is a zoning ordinance issue so it’s in the PUD ordinance. You have a copy of it I believe. Mark Nordland: Yes. Roger Knutson: So if you want anything changed in this ordinance you should be very specific on what you want changed and what you want it to say. Kate Aanenson: Yeah, he’s going to go through that but the question is whether we’re going to be able to resolve. Mayor Laufenburger: This is what I’m hearing is that Kate you’re presenting the PUD for approval tonight. Kate Aanenson: Correct. Mayor Laufenburger: The PUD ordinance for approval tonight and Mark what I’m hearing you say is that you don’t agree 100 percent with the signage stipulation so the only alternative for us is either you make your argument tonight and we change the, we approve or deny or you work with city staff to get the language in the PUD right. As Mr. Gerhardt and Mr. Knutson said… Kate Aanenson: If I can just suggest another route. I think it’d be helpful if they did explain to you what you want and you can give us some direction and we can kind of have some because otherwise we may agree to disagree and then we’re back at the same spot so, does that make sense? Mayor Laufenburger: Okay. Yeah that’s probably true so Mark have you made your full argument on signage? Mark Nordland: No. We can. The direction we had from Planning Commission and from staff prior to this meeting was that we were going to come to agreement on a comprehensive signage plan for the development and have that adopted at final plat. It sounds like legally there’s something different here. I’m wondering Mr. Knutson is there any way that we can have the signage portion removed from the PUD ordinance right now and adopt that at a later date as a separate matter? We’re really, you know as you’ve seen we’ve been through 3 Planning Commission meetings. I think you probably all watched the tapes and read all the Minutes and it’s been a long process which deservedly so. It’s a major project. There’s a lot of moving pieces but if we can get this approved and then work with staff I feel very confident, there are 4 issues I was going to talk about that we agreed that we would work on between now and final plat to get finalized but get the zoning in place now so that we know the basis upon which we’re moving forward. 98 Chanhassen City Council – July 10, 2017 Roger Knutson: Signage is part of the zoning. You could, if the council adopt this tonight then you would have to go back to the Planning Commission. Have another public hearing to amend this. That’s one possibility. Darren Lazan: Mr. Mayor one of the thoughts we had going into this is that potentially the ordinance could be adopted tonight that reflects, unless otherwise approved as part of a comprehensive sign package these are the sign criteria as staff has laid out. That gives us the opportunity to either comply with what’s been laid out by staff or come back with that comprehensive package. Roger Knutson: They cannot, the council cannot approve anything that’s inconsistent with this ordinance. Kate Aanenson: That’s what he’s saying. Didn’t you just say you. Darren Lazan: Yeah, no I just said that we would, it would, the comprehensive sign package would have to come back before the first development stage plan. That would have to go through planning and council and be approved. Then it would over ride the base that you’re approving tonight. Kate Aanenson: So what they do when they come back for site plan they also ask for an amendment to the PUD. Roger Knutson: It’s have to be a PUD amendment. Kate Aanenson: Right, right. I like that. Roger Knutson: So then we can adopt this tonight as it is. Kate Aanenson: Correct. Darren Lazan: Yeah that was our hope… Mayor Laufenburger: So then it becomes your decision as to whether or not in your discussions you choose to comply with the signage ordinance in the elements of the PUD or not. If you choose not to then you know that you’re coming back through the Planning Commission public hearing for. Kate Aanenson: An amendment. Mayor Laufenburger: Amendment to the PUD. 99 Chanhassen City Council – July 10, 2017 Darren Lazan: And I think the most likely amendment will be our initial package we’d like to put together to put this comprehensively. Work with staff and bring it forward for your consideration and it will likely be hopefully the only amendment related to signage for that. But we just wanted the opportunity to take this is the baseline and have the ability to demonstrate the projects as they come in and how they’ll tie together with signage and why that’s critical to the success so. Mayor Laufenburger: Okay, what I’m hearing from Kate is that you’re prepared to accept that process is that correct? Kate Aanenson: Yeah. Mayor Laufenburger: Okay, alright. Continue Mark. So that’s point number one right? Mark Nordland: Perfect. You just saved about an hour of a signage presentation from Darren so that’s good. Mayor Laufenburger: Well we didn’t save it. We just postponed it. Mark Nordland: Postponed it. Well until we’ve had a better chance to work through. There’s a few areas that we’re for sure going to need to compromise and I think we can all come to something that works well. Senior housing. I believe the approval that’s set forth allows for the senior housing with services. Is that correct Kate? Kate Aanenson: Yes, we did agree that we would allow senior services. Mark Nordland: Alright because some of the earlier staff reports staff was unsure if that was a good use on the site and Planning Commission I think and hopefully some of our. Mayor Laufenburger: I have a question regarding that? Mark Nordland: Yes. Mayor Laufenburger: You’re aware of, I think Kate’s comment was we believe we have enough senior housing. Kate Aanenson: That was in the earlier reports correct. Yep. Mayor Laufenburger: So you’re aware of some of the senior housing developments that are underway? Mark Nordland: Yeah, very aware. 100 Chanhassen City Council – July 10, 2017 Mayor Laufenburger: And the people that you’re working with still believe that there’s a market opportunity, is that correct? Mark Nordland: Very much so. We’ve, Tom Palmquist is here tonight who’s helping us market the project or who’s leading the marketing on it and we’ve got 6 prospective users that are all competing for that use right now on our site that all would like to be here in Chanhassen so it’s a good thing and I think the development that we’re creating is a great place for seniors to be in addition to the other housing that we’re providing. That you wouldn’t want it just to be a big senior housing development but it’s a mix that allows the full life cycle of folks to be on the site. And we have senior independent or age restricted independent that wants to be here but to be able to have the senior with services it allows people to age in place which is really important for them. If you’re going to go rent an apartment as you’re aging it’s nice to know or it’s important and critical in a lot of cases to know that you can you know across the parking lot be in another facility or your spouse can be as you age going forward so that’s really important in the marketplace and we appreciate staff’s hearing of us and the Planning Commission and others. Mayor Laufenburger: So item 2 has been approved so. Mark Nordland: So there we go. Kate Aanenson: Check. Mark Nordland: Well it’s in the PUD as drafted to potentially be approved. Todd Gerhardt: It does have not to exceed 150 units. Mark Nordland: Yeah of senior. Kate Aanenson: Of senior. Of assisted. Mark Nordland: With services correct. We agreed that it would just be one project. Todd Gerhardt: Okay, but the 150 was fine? Mark Nordland: Yes. Yep, no that was the number we agreed to. I just wanted to make sure that everybody was on the same page there. And then the Bluff Creek Boulevard road profile. That’s another thing that we’re going to work out. I think the traffic calming is critical to the development. It’s critical to the neighbors. You know we hired this Toole Design out of California for an exorbitant fee to come in and help us figure out exactly what works well here. There’s a compromise to be had there and I think we all just need to sit at the same table. Planning staff and the fire staff and ourselves and whoever else wants to be at that table to come to a conclusion on what works and we’ll offer up some suggestions and take their feedback and 101 Chanhassen City Council – July 10, 2017 work through that process, and that will come through on the final plat because it’s not a PUD item. That’s part of the plan, correct? Mayor Laufenburger: So you’re comfortable that whatever results from that process you’ll do? Mark Nordland: Yes. We’re comfortable that we’ll be able to get to that conclusion. And if there’s still some disagreement it would be back before you to I guess arbitrate that but I think we’ll be able to get there. Staff has been good to work with and we just need to all sit around and figure that out together. And then the last is the Bluff Creek Overlay District. I’m sure from watching the Planning Commission meeting you’ve seen sort of where they came out on that. You know we initially, in our initial concept plan that you, I don’t know if approved is the right word but you saw back in November and commented on. We had 4.4 acres of private impact there plus 2.1 acres for the road that went through. Our submittal was 2.9 acres of impact for the private development. We tried really hard to get it down. You saw the plans earlier. We got it down as much as, as little as 1.3 acres but as we brought that back to the providers that actually own and operate those facilities, that plan did not work. That was us trying to make it work but it was too linear and really we need to go back and figure that out and the Planning Commission’s direction to us was go back. Get an actual site plan that minimizes the impact as much as you can and then come back in with the variance and the site plan together, which is what we intend to do so we actually would formally like to withdraw our request for that variance because I think that if we are denied that variance we have to wait a certain period before we can come back in and request it again and we’d like to come back in with the actual provider. With their actual plan. They can stand here and defend it much better than I. Mayor Laufenburger: Seems to me that’s sort of what the Planning Commission said. Mark Nordland: That’s exactly what they asked, yes. And we contemplated trying. The trick is we need to get the provider to spec the time and money and energy to come in not knowing if the building envelope will be there for them or that the site will be there for them to accommodate their facility but we don’t see another choice in the matter and we’re going to go down that path and. Mayor Laufenburger: So the Bluff Creek Overlay District is, could potentially be impacted two ways. Number one by Bluff Creek Boulevard. That’s building in the Bluff Creek Overlay District. Kate Aanenson: We’ve got that covered already. Mayor Laufenburger: But that’s one way. And then the second is this impact into these 18 acres of woods, is that right? Mark Nordland: Yes. Somewhere up to 3 acres we will likely be back in here asking for your approval on so we didn’t want to just have this be passed and not make note of the fact that we 102 Chanhassen City Council – July 10, 2017 will be back with that but you’ll have every right to review and ask us a lot of tough questions about whether or no it’s an impact that’s worthwhile and vote on it accordingly at that point. Mayor Laufenburger: So it sounds like we’ve agreed now on number 1, on the signage. You’re prepared to submit an amendment to the PUD. You got yes on the senior housing. 3 is the road which is going to be a discussion and then you’re withdrawing the request for a variance so that is one of those items in, when we get there. We just will not include that. Kate Aanenson: Well actually we recommended no so it’s consistent with that. With our recommendation because we recommended no on the variance so they’re agreeing to the no so. Mark Nordland: Yes but I think the important. Kate Aanenson: Withdrawing the application. Darren Lazan: We want to withdraw. Mark Nordland: We want to withdraw so you don’t actually deny it as Mr. Knutson would advise us. It’s a good thing otherwise we’d have to wait 6 months or a year before we can come back in. Mayor Laufenburger: We’re taking his advice. Todd Gerhardt: We need an official letter of withdrawal. Mark Nordland: So with that I just. Mayor Laufenburger: Do we? Kate Aanenson: Yes. Todd Gerhardt: Yes. Kate Aanenson: Did you hear that? Someone’s got to pencil out or pen out a withdrawal and date it. Darren Lazan: Do you want it done before the vote? Kate Aanenson: Yeah. Mark Nordland: With that I just really want to thank the staff. Todd Gerhardt: You can send us one. 103 Chanhassen City Council – July 10, 2017 Mark Nordland: The neighbors that have been involved in this process. You know at the initial neighborhood meetings there were hundreds of neighbors. We’re now down to, she’s still here. We’ve got a couple. Mayor Laufenburger: Let me stop you. Todd wants to say something to Kate. Todd Gerhardt: We can get it later. Mark Nordland: Now it’s down to just a couple neighbors and I think we’ve done a pretty good job of working together with staff and neighbors and the Planning Commission and the council when we were here before and hopefully again here tonight. To take a really complicated project with a lot of moving pieces and drive it forward. I also would like to thank our client Level 7 as far as a client to work with that’s got vision and normally we’re always trying to cut corners and trying to do things to drive cost out or try to make things work and it’s been really the exact opposite in working with Level 7. They’ve been really pushing us to excel and do more. I’ve been doing this over 20 years for a lot of major developers in Minneapolis and nationwide and never had an experience like that so we really appreciate everything and we’re here for questions and whatever else you need. Mayor Laufenburger: See if there’s any questions of council. Council any questions regarding what we’re being asked? Just keep in mind one of the items will be withdrawn and the wetland permit is subject to approval by the WCA. WCA right so that’s the two changes. Any other changes there Kate? I think that was it. Kate Aanenson: I think Mr. Knutson probably redid the Findings of Fact and Decision for me and the motion. But I think we’re in a good place. Mayor Laufenburger: So any questions of the applicant? So let’s bring this back to the council then. This is not a public hearing. Mr. Akradi, it’s late at night. Would you like to say something to the council? Bahram Akradi: I just want to thank you, if you don’t mind I’ll just do it from here. I’ll say it loud enough. I want to thank starting with Kate, Todd, city staff, my team to work so well together. This has been a work in progress. It’s been we’ve been at it now for a little over 2 years. Working on the project. I’m excited about doing something totally first class. We talked about doing things environmentally friendly. I’ve been pushing them to do so as much as we possibly can. I want it to be something timeless for the community and I’m just excited to go through and I appreciate all of you. The City Council as well as the staff for cooperation. Obviously I’ve developed over 25 million square feet across the country and it’s not always this cooperative and for many times for no good reason so I just want to thank everybody for the effort that you guys are putting forward in this. That’s it. Thank you. 104 Chanhassen City Council – July 10, 2017 Mayor Laufenburger: Alright, thank you very much Mr. Akradi. Okay bring this back to council. Are we ready for a motion or not? Kate Aanenson: I think if we can get some directions on the motions and potentially Findings of Fact. If we need to change that at all or. Roger Knutson: Mayor, members of the council. Can I make some suggestions? Mayor Laufenburger: Okay. Roger Knutson: Where it says the Chanhassen Planning Commission recommends, that would be deleted and replaced with the City Council approves the rezoning. City Council approves the subdivision. Todd Gerhardt: You’re just taking out Planning Commission. Kate Aanenson: Oh that’s always good. Mayor Laufenburger: Does anybody feel comfortable in reading what we need to have or do you want to. Roger Knutson: And then. Mayor Laufenburger: Do we wait for the change? Councilman McDonald: If you want I’ll give it a try. Councilwoman Tjornhom: He’s a trooper tonight isn’t he? Mayor Laufenburger: Isn’t he though. Put that up there Kate. We’re going to try this. Roger Knutson: I’d point out that item D has been withdrawn. Mayor Laufenburger: Yeah. Todd Gerhardt: Take D out completely. Roger Knutson: And if I can explain the Findings that you have will be amended. On paragraph 6. Wetland Alteration Permit. Amend it to provide that it’s approved subject to the TEP panel’s approval. Recommended approval. Paragraph 7. Variances will be deleted and it will noted the applicant is withdrawing the request. In the Decision it will be amended to say that Wetland Alteration for the grading and filling of wetlands is approved subject to the TEP panel approval. Recommended approval. And you’ll take out the provision on variances. Will not be needed. 105 Chanhassen City Council – July 10, 2017 Darren Lazan: TEP panel’s an advisory body to the City as the LGU so it’s really subject to the City’s approval of the wetland alteration. Roger Knutson: That means it has to come back. Darren Lazan: It does yeah. Same thing. It’s just not subject to the TEP panel approval. It would be subject to the City’s approval. Roger Knutson: So we’re not approving the wetland alteration permit tonight then. Kate Aanenson: So the whole goal from the beginning is once they made a determination we wouldn’t have to come back to this body. That’s been our goal so I think we want to leave it to the TEP panel. Darren Lazan: Gotch ya. Mayor Laufenburger: Can we say subject successful review? Subject to successful review by the TEP? Darren Lazan: Subject to obtaining Wetland Conservation Act. Roger Knutson: And the recommended approval of the TEP panel. Mayor Laufenburger: Subject to recommendation of approval by. Roger Knutson: Ideally it would come back to you but they don’t want to do that. Todd Gerhardt: They want us to maybe override the TEP panel. Mayor Laufenburger: Well you still comfortable with this Mr. McDonald? Councilman McDonald: Sure, just let me know when. Are you ready Mr. Mayor? Councilwoman Ryan: Can we get clarification then on this TEP panel approval. Kate Aanenson: Yeah can’t we say that. Roger Knutson: TEP panel by ordinance makes a recommendation to you and then you make the decision. Councilwoman Ryan: Right it comes back to us. 106 Chanhassen City Council – July 10, 2017 Roger Knutson: That’s not the way this is set up. Councilman Campion: So is it subject to no changes from the TEP panel? Roger Knutson: TEP panel by ordinance, state statute makes a recommendation to you, the governing body. Todd Gerhardt: And then you can make changes to the TEP panel. Roger Knutson: You don’t have to follow the recommendations. Councilman McDonald: Okay subject to recommendations by the TEP panel. Mayor Laufenburger: There we go. Approval subject to recommendations. Mark Nordland: So if they recommended against then we’d have to come back. Todd Gerhardt: And you have to convince this board of those changes. Darren Lazan: Yeah, we got it. I think we’re fine with that. Roger Knutson: Okay. Mayor Laufenburger: Subject to affirmative recommendation. Darren Lazan: Well now you just changed it. Todd Gerhardt: Yeah. Darren Lazan: And the only, and I’m sorry Mr. Mayor. The only reason I’m hung up a little bit on it is that the TEP panel doesn’t approval anything. They provide the recommendations to you folks. Councilman McDonald: It wouldn’t be affirmative. I mean they could recommend in the negative too. Darren Lazan: Yep, and then you can decide on the positive. Councilman McDonald: Yeah then it comes back to us. Mark Nordland: So if they recommend in the negative we have to come back before you and make our case. 107 Chanhassen City Council – July 10, 2017 Darren Lazan: Yeah. Mayor Laufenburger: Okay, Mr. McDonald you want to try it? Councilman McDonald: Okay. Mr. Mayor I make the following motion. A. The Chanhassen City Council approves the Rezoning of 115.519 acres from Agricultural Estate District, A2, to PUD Regional Commercial including the PUD ordinance. B. The Chanhassen City Council approves Subdivision Preliminary Plat creating 17 lots, 3 outlots, and dedication of public right- thth of-way as shown in plans prepared by Landform dated April the 14 and June the 12, 2017, subject to conditions in the staff report. C. The Chanhassen City Council approves the Conditional Use Permit to encroach into the primary zone and required buffer for the construction of Bluff Creek Boulevard, subject to conditions in the staff report. Then I guess next one should be D. The Chanhassen City Council approves the Wetland Alteration Permit to 4.4659 acres of permanent wetland impacts subject to conditions in the staff report and subject to approval, it should by the WCA. Mayor Laufenburger: I think you want to make that word recommendation. Subject to recommendation. Todd Gerhardt: The TEP panel. Councilman McDonald: Well I thought the TEP panel. Roger Knutson: Subject to the TEP panel’s recommendation for approval. Councilman McDonald: Okay, subject to the TEP panel’s recommendation for approval. And then E. The Chanhassen City Council also adopts the attached Findings of Fact and Recommendations subject to the approval of the TEP panel. Roger Knutson: That’s not necessary. It will be in the Findings. Mayor Laufenburger: Modifying paragraph 7. Councilman McDonald: Modify paragraph 7. Mayor Laufenburger: Withdrawing the request for a variance. Councilman McDonald: And with modifying paragraph 7 in which the request for a variance is withdrawn. Roger Knutson: Right, and modify paragraph 6 to show that we need the TEP panel’s recommended approval. 108 Chanhassen City Council – July 10, 2017 Councilman McDonald: And modify paragraph 6 to show that the Chanhassen City Council will need the TEP panel approval. Roger Knutson: Recommendation for approval. Councilman McDonald: Recommendation. Scratch approval. Recommendation. Roger Knutson: For approval. Councilman McDonald: For approval. Mayor Laufenburger: Okay let’s sit on this for just a second. Kate Aanenson: Where is paragraph 7? Mayor Laufenburger: Findings of Fact. Todd Gerhardt: Findings of Fact. It has the variance in the Findings of Fact. Page 8. Kate Aanenson: Thank you. Mayor Laufenburger: So we have a motion for A, B, C, D, approval of the wetland alteration permit subject to a recommendation of approval by the TEP panel. And item E, adopting the attached Findings of Facts and Recommendation with modifications to paragraph 6 citing that wetland permit is subject to recommendation for approval from the TEP panel and paragraph 7, applicant’s desire to withdraw the variance request. That’s what we have in front of us right now. Mr. Knutson, is that acceptable? Roger Knutson: I think it’s what you, sounded good to me. Mayor Laufenburger: Okay, alright. We have a motion. Is there a second? Councilman Campion: Second. Mayor Laufenburger: Thank you Mr. Campion. Any discussion at this time? Councilman McDonald: Mr. Mayor? Mayor Laufenburger: Councilmember McDonald. Councilman McDonald: Well I’ll let. Mayor Laufenburger: Councilman Campion. 109 Chanhassen City Council – July 10, 2017 Councilman Campion: No I just want to apologize to the Level 7 and the Avienda team for pushing you back tonight but yes, so I apologize for that but I appreciate your patience in working through all these issues with staff and it looks like it’s shaping up to be a great development. Mayor Laufenburger: Councilmember Ryan, did you have your hand up? Councilwoman Ryan: I did not. I know you’re used to seeing that but. Mayor Laufenburger: You must have scratched your face or something. Councilmember McDonald, did you have a comment. Councilman McDonald: Well yeah, I had a comment because one of the things that Ms. Aanenson said was she’s looking for some direction from council so I thought I’d give her some direction. At least from my perspective. I want to thank Level 7. I think, well as you heard last time I’ve been involved in the project across the street for a lot of years. Been involved in this project for a lot of years and my question has always been, what are you going to do? What does it look like? Because we were always being asked to approve things that I had no idea how it fit into the overall picture so I really appreciate being given a vision and an idea of what it is you’re trying to accomplish with all of this land and my hope is that again you’ve shown great cooperation working with the City which is very welcomed and again very different from what I think we were used to and I would encourage the City that, or the staff at all possible give them the benefit of the doubt. I think this is a great looking project. I think it would make the City proud. I think it’d be a destination just like Prince’s property would be so I wish you a lot of luck and I’m hoping that the cooperation can continue but again I would lean toward giving them the benefit of the doubt. That’s my two cents worth and my direction. Mayor Laufenburger: Well that was more like 4 or 5 cents Mr. McDonald but you’re allowed. You’re allowed. Anybody else a comment? Okay. Councilman McDonald moved, Councilman Campion seconded that the Chanhassen City Council approve Planning Case #2017-19 to rezone 115.54 acres from Agricultural Estate District (A2) to PUD Regional Commercial-PUD Subdivision contingent upon final plat approval, as shown in plans from Landform dated April 14, 2017 and June 12, 2017, subject to the PUD ordinance and adoption of the Findings of Fact. All voted in favor and the motion carried unanimously with a vote of 5 to 0. Councilman McDonald moved, Councilman Campion seconded that the Chanhassen City Council approves the Subdivision Preliminary Plat creating 17 lots, 3 outlots, and dedication of public right-of-way, plans prepared by Landform dated April 14, 2017 and June 12, 2017, and subject to the following conditions: 110 Chanhassen City Council – July 10, 2017 Engineering 1. Top and bottom elevations for all retaining walls shall be labeled on the plan set. 2. A fence or other barrier is required at any location where a wall is greater than 6 feet tall and within 10 feet of a public right of way. 3. The following wall materials are prohibited: smooth face, poured in place concrete (stamped or patterned is acceptable), masonry, railroad ties, or timber. Boulder walls are prohibited if the maximum height is greater than 6 feet. 4. All retaining walls shall be owned and maintained by a property-owners association. 5. The applicant shall submit a revised grading plan to show Wall E, including top and bottom wall elevations. 6. As large, landscaped boulevards are proposed, the applicant shall add a note to the typical sections to identify a corridor for installation of private utilities such as power, communication, gas, etc. 7. The applicant shall show the road profiles and a horizontal alignment table in the plan set for all public roads prior to final plat. 8. The public roads constructed with this development are: Bluff Creek Boulevard, Avienda Parkway, Sunset Trail and Mills Drive. All other roads and drives constructed with this development will be privately owned and maintained. 9. The applicant proposes an Ultimate Plan for the Bluff Creek intersection with Powers Boulevard that includes two-lane entry into the roundabout. The City requires this Ultimate Plan be constructed at this time, but the roadway can be striped for one-lane only. 10. The applicant shall remove pavement and expand the median on the southern leg of the Powers Boulevard/Bluff Creek Boulevard intersection to remove the second left-turn lane from northbound Powers Blvd to westbound Bluff Creek Blvd. 11. Staff recommends the applicant add traffic calming measures to Avienda Parkway West near the residential areas of development. Specifically, the applicant shall incorporate pedestrian-friendly crossing features to the intersection at Mills Drive and Avienda Parkway West. 12. The applicant shall revise the width of Mills Drive to correspond with the existing Mills Drive section in The Preserve at Bluff Creek. 13. The applicant shall align the intersection of Mills Drive and the access to the apartment building with the parking ramp to form an intersection rather than offset as the current plan shows. 111 Chanhassen City Council – July 10, 2017 14. Sunset Trail will become a private roadway from Avienda Parkway to Bluff Creek Boulevard as it winds through the center of the development. When Block 5 and/or Lot 2, Block apply for site plan approval, this private road shall be constructed. 15. The plan for concrete sidewalk on the inside of Avienda Parkway shall be revised to a 5- foot width. 16. ADA-compliant pedestrian ramps shall be constructed at all intersections and median refuges per the MnDOT standard details. 17. The sanitary stub from MH 25 shall be no larger than the 8” downstream pipe and the slope shall be adjusted accordingly. 18. Sanitary service stubs shall be provided for the six twin home units proposed on Mills Drive. 19. Sanitary structures shall be moved out of the landscaped median and into the center of lanes for improved future maintenance access. 20. All sanitary sewer main constructed within the right-of-way in this project shall be publically owned and maintained. 21. Private sanitary main must be constructed to meet the City’s requirements for public utilities. 22. The plan shall use 2017 Chanhassen standard detail plates, which are available on the City’s website. 23. The proposed water main connection 570 feet north of the Bluff Creek Blvd/Powers Blvd intersection shall be removed. A water main connection from Avienda Parkway to Lyman Boulevard through the parking lot of Lot 3, Block 4 shall be installed. The applicant shall grant a drainage and utility easement for this publically owned and maintained connection. 24. Water service stubs shall be provided for the six twin home units proposed on Mills Drive. 25. Additional water main stubs shall be provided at the accesses for Lot 1, Block 4 and Lot 1, Block 5. 26. All water main constructed within the right-of-way in this project shall be publically owned and maintained. Private sanitary and water main must be constructed to meet the City’s requirements for public utilities. 27. The applicant must show a maintenance access route for the pond at the bottom of Wall D. 28. The applicant must provide the total disturbed area of the proposed development. 112 Chanhassen City Council – July 10, 2017 29. Permanent stormwater management controls for Volume, Rate, and Water Quality are required per the Riley Purgatory Bluff Creek Watershed District (RPBCWD) rules. 30. The applicant must provide a figure clearly identifying the areas to be irrigated with areas quantified, which is not included in the current plans. 31. The proposed reuse system does not provide sufficient volume reduction per RPBCWD rules. It is recommended that the irrigation system is revised to provide further volume reduction. 32. The applicant must provide documentation that each of these ponds meets the Level 1, 2, and 3 criteria per the Minnesota Stormwater Manual to ensure that they will produce the calculated water quality benefits. 33. The applicant must provide the annual runoff volumes to each wetland for the pre- and post-project conditions. 34. The applicant must provide further information on the bounce and inundation periods for each of the identified critical wetlands. The bounce and inundation changes caused by the project must be in compliance with WCA requirements. 35. The twin home units must pay a water and sanitary service partial hook-up fee when Lot 1, Block 2 and Lot 1, Block 3 are replatted at the rate in place at that time. The remaining hook-up fees would be paid with the building permits. 36. The developer shall work with the Building Department to determine the City SAC and WAC fees for commercial and multi-family buildings. The hook-up fees for commercial and multi-family buildings are due with the building permit at the rate in place at that time. 37. The developer shall pay this site’s portion of the 2005 AUAR costs- which is $25,836.70 with the final plat. 38. Collector and Arterial Roadway Traffic Impact Zone fees will be collected with the final plat. The fee will be based on the commercial rate of $3,600 per acre and a residential rate of 2,400 per acres. 39. The developer shall escrow funds for installation of traffic signals at Sunset Trail, Powers Boulevard and Audubon Road. The escrow amount shall be based on the Carver County’s cost participation policy as published on their website. 40. The proposed redevelopment will need a Riley-Purgatory –Bluff-Creek Watershed District (RPBCWD) permit prior to beginning construction activities. 41. It is the applicant’s responsibility to ensure that permits are received from all other agencies with jurisdiction over the project (i.e., Army Corps of Engineers, DNR, MnDOT, Carver County, RPBC Watershed District, Board of Water and Soil Resources, PCA, etc.). 113 Chanhassen City Council – July 10, 2017 42. A drainage and utility easement shall be placed over Outlot B. 43. The developer shall dedicate the Conservation Easement containing the Bluff Creek Primary Zone to the City. 44. Provide a cross access easement to Lot 4, Block 1. Landscaping 1. No development encroachment on the Bluff Creek Overlay District primary zone shall be allowed nor fragmentation of the primary zone area. 2. The access route shall follow the shortest route from Camden Ridge to the proposed development. 3. The applicant shall submit an overall landscape plan that shows proposed landscaping for the overall site including items such as parking lots, perimeter, foundation and open space areas. 4. Parking lot islands shall be linear areas incorporating planting area and stormwater management. 5. If the applicant chooses to install the minimum requirement sizes of parking lot landscaping islands, then if the proposed plan remains committed to individual landscape islands, then silva cells, engineered soil or other accommodations must be used in order to insure the survival of the trees. 6. No more than 20% of the total trees should be from any one genus and no more than 10% should be from any one species. 7. A reuse watering system should be considered to irrigate all plantings within the site. 8. Drought tolerant plants shall be incorporate into the overall landscape plan. 9. Proposed landscaping plant materials shall be selected based on site conditions. 10. At a minimum, overall tree cover should be at least 20-25% or higher in commercial areas and a minimum of 30-35% or higher in residential areas. 11. Any landscaping located within the ROW or the median shall be covered by an encroachment and maintenance agreement Park and Trail 114 Chanhassen City Council – July 10, 2017 1. Incorporate meaningful park-like places, including the provision of appropriate recreation equipment, site furnishings, and landscaping adjacent to residential components. 2. Preserve the woodlands identified in the Bluff Creek Overlay District. Provide a blanket trail easement over the entire preserved area to accommodate the installation of natural surface public trails. 3. Provide an attractive public trail connection from the north entering the Bluff Creek Overlay District. 4. Incorporate traffic calming into all pedestrian crossing locations. 5. Full park dedication fees shall be collected per city ordinance in lieu of requiring parkland dedication. Building Official Comments 1. The buildings are required to have automatic fire extinguishing systems. 2. Building plans must be prepared and signed by design professionals licensed in the State of Minnesota. 3. Soil evaluation (geo-technical) report required. 4. Retaining walls over four feet high must be designed by a professional engineer and a permit must be obtained prior to construction. Fire Department Comments The east and west bound driving lanes of Bluff Creek Boulevard extending from Powers Boulevard to the existing Bluff Creek Boulevard be increased from 16 feet to 20 feet curb to curb. This is in order for emergency apparatus to safely pass cars and trucks once they pull over and stop. All voted in favor and the motion carried unanimously with a vote of 5 to 0. Councilman McDonald moved, Councilman Campion seconded that the Chanhassen City Council approves the Conditional Use Permit to encroach into the primary zone and required buffer for the construction of Bluff Creek Boulevard; subject to the following conditions: 1. The developer shall dedicate the Conservation Easement containing the Bluff Creek Primary Zone to the City. 115 Chanhassen City Council – July 10, 2017 2. The Developer shall provide the city with a management for the area and submit to the city for review. 3. Monuments indicating the Bluff Creek Overlay District shall be placed at every other property corner and at an angle of deflection greater than seven percent, but in no case shall they be greater than 150 feet apart. 4. The developer shall not encroach into the Bluff Creek Primary Zone. 5. The developer shall comply with the with the 40 foot primary zone setback and preserve or create a 20 foot buffer from the primary zone. 6. The buffer will be required to have a vegetation management plan and soil amendments. 7. The plans shall be revised to remove any structure in the BCOD. All voted in favor and the motion carried unanimously with a vote of 5 to 0. Councilman McDonald moved, Councilman Campion seconded that the City Council approve the Wetland Alteration Permit to 4.4659 acres of permanent wetland impacts subject to the TEP panel’s recommendation for approval and subject to the following conditions:  The applicant needs to supply the needed additional information to the city. The additional information is needed to determine if the project meets the WCA requirements.  A Technical Evaluation Panel meeting is needed to review the application.  If the application is deemed to meet the avoidance and minimization criteria of the WCA, a mitigation plan that adequately replaces wetland functions and values is needed.  City Staff has reviewed mitigation options. City Staff recommends the applicant provide wetland mitigation via the purchase of wetland bank credits, at a ratio of 2:1, in accordance with WCA requirements.  The applicant shall contribute $300,000 to the city for water quality improvement projects within the watershed. Wetland Functions and Mitigation If the project meets the WCA sequencing and shows that the wetland impacts need to occur for the project (i.e. if the project meets wetland avoidance and minimization requirements), the rest of the WCA review for this project is dependent on wetland replacement. 116 Chanhassen City Council – July 10, 2017 The WCA requires that wetland replacement must replace the public value of wetlands lost because of an impact. The public value of wetlands is generally based on the functions of wetlands including: water quality, flood water attenuation, public recreation and education, and fish/wildlife/plant habitats. The WCA uses the Minnesota Routine Assessment Method (MnRAM) to determine functions and values. The City completed a citywide MnRAM in 2006. The applicant has completed MnRAM as part of the application process. For the onsite wetlands that were previously evaluated by the City, the applicant’s MnRAM has either the same result or a slightly higher quality results for the wetlands. The table above shows the wetland management categories from the application. The standard categories that the city uses, which are in conformance with state guidance, is as follows:  Preserve: These are the highest quality wetlands and have high quality habitat and native vegetative diversity.  Manage 1: These are a lower quality than Preserve, but still show high habitat quality and plant diversity.  Manage 2: These wetlands have been impacted by stormwater, invasive species, or other impacts and are lower quality than Manage 1. They likely still provide some habitat and may have some native plant species.  Manage 3: These wetlands have been impacted the most and may provide a stormwater treatment function and have minimal native plants. These are the lowest quality wetlands. The wetlands proposed to be impacted by the project are either Manage 2 or Manage 3 wetlands. Some have historically been excavated. These wetlands do not contain a diversity of native plants. They do provide stormwater and floodplain treatment for downstream wetlands as they are at the headwaters of the Bluff Creek and Lake Susan watersheds. Downstream waters are impaired for water quality. Wetland mitigation that replaces wetland functions and values at a minimum of a 2:1 ratio is required and can be met in a variety of ways:  Onsite mitigation: New wetlands are created or restored within a project area. This could address replacing functions and values in the same area, but the current layout does not provide opportunity for a reasonable creation or restoration project. Also, creating new wetlands takes time and there are many factors to consider for its success. 117 Chanhassen City Council – July 10, 2017  Replacement in the same subwatershed: New wetlands are created or restored within the same minor or major subwatershed as the project. This would allow wetland functions and values to be replaced within the subwatershed where the project is located and the project layout would not have to be altered to fit mitigation on site. However, a suitable site would need to be located.  Purchase of wetland credits from a wetland bank: There are several wetland banks in the state and applicants can purchase credit from these already created wetland areas. It is preferred in the WCA rules that a bank within the same bank service area be chosen to purchase credit for a project.  Some combination of these mitigation options: An eligible project can also use a combination of these mitigation options. As stated, if the project is determined to have met the avoidance and minimization criteria for the wetland impact, wetland mitigation for the lost functions and values would be required at a minimum of a 2:1 ratio. Currently, the applicant is proposing mitigation through the purchase of credit from three wetland banks in Blue Earth, Stevens, and Rice Counties. These banks are in the same bank service area, and only one is in the same major watershed area.  In addition to the wetland bank credits, City staff recommends that a condition of approval will include the applicant shall contribute $300,000 to the city for water quality improvement projects within the watershed. All voted in favor and the motion carried unanimously with a vote of 5 to 0. Councilman McDonald moved, Councilman Campion seconded that the Chanhassen City Council adopts the attached Findings of Fact and Recommendations as amended by the City Attorney. All voted in favor and the motion carried unanimously with a vote of 5 to 0. Mayor Laufenburger: Congratulations. We look forward to seeing you more. Wow. You may be done but we’re not. Alright, thank you. We have one more item that was taken from the consent agenda. CONSENT AGENDA: D-8. AWARD OF BID, CITY HALL EXTERIOR LANDSCAPING. Mayor Laufenburger: Who’s is this? Todd Gerhardt: Mine. Mayor Laufenburger: Alright, Mr. Gerhardt. Todd Gerhardt: Mayor, City Council members. Staff is recommending awarding bid to Blackstone Contractors for a base bid of $33,835 and add Alternate #2 for signage of $32,000, giving you a total award of $365,835.00. 118 Chanhassen City Council – July 10, 2017 Mayor Laufenburger: Alright, and staff is recommending awarding that bid, is that correct? Todd Gerhardt: That’s correct. Mayor Laufenburger: Okay. Let’s see. I think Councilmember Campion, did you pull this off? Councilman Campion: I did. Mayor Laufenburger: Why don’t you raise your question or comment if you’d like. Councilman Campion: Yeah my comments are really the same as what I shared in the work session prior. You know I recognize that safety maintenance items need to be addressed with the crumbling stairs and you know pavement sections that are uneven and things like that but I would really like to see us reject this and alter our base bid package to be focused more on the necessities and remove the items that are purely aesthetic in nature. I realize that some of the improvements you know are addressing safety issues and also have an aesthetic component. I’m not opposed to that. Just the total amount of $365,000 for these improvements around this building just seem excessive to me. Mayor Laufenburger: Okay. Anybody else want to make a comment or questions? Councilwoman Ryan: Mr. Mayor? Mayor Laufenburger: Yeah, Councilmember Ryan. Councilwoman Ryan: I just I support Councilman Campion’s comments. I think he articulated it well. It was a concern of mine which I shared in the work session as well so I just want to offer my support to Councilman Campion’s words since he articulated it very well. Mayor Laufenburger: Okay. Well would anyone like to make a motion or Mr. McDonald did you have a comment? Councilman McDonald: Well I’ll do a motion. Mayor Laufenburger: Okay. Councilman McDonald: If I can find it. Mr. Mayor I’ll make the motion that the Chanhassen City Council accepts the City Hall exterior landscaping bids and awards the contract to Blackstone Contractors LLC in the amount of $365,835.00 which includes the base bid and Alternate #2. Mayor Laufenburger: Okay. We have a valid motion. Is there a second? Councilwoman Tjornhom: Second. Mayor Laufenburger: Thank you Ms. Tjornhom. I have a question Mr. Knutson. This is for you specifically. Can we choose to accept this bid as a formality and then direct staff to enter into bona fide negotiations with the contractor asking them for consideration of removing those, removing the 119 Chanhassen City Council – July 10, 2017 work or work change orders that would remove items that the staff deems to be purely aesthetic and not for safety purposes. Is that possible? Roger Knutson: Mayor, members of the council yes by change order. You can’t change the, make incredibly insignificant changes to the scope of the project but normal change orders, adding a few things or deleting a few things absolutely. Mayor Laufenburger: Okay. Todd Gerhardt: But Roger you should preference that by saying it may not be for dollar for dollar. Mayor Laufenburger: Right I understand. Roger Knutson: Right because it’s a change order so you don’t know what the number will be until you negotiate with the contractor. Mayor Laufenburger: But it’s acceptable for us to separate from the approval of this award instruct staff to enter bona fide negotiations for the purpose of seeing if it’s a value or seeing if it’s wise or efficient use to eliminate the aesthetics, aesthetic only things of the contract while leaving all of the safety things. And then the council trusting the judgment of city staff to enter into those negotiations so that they wouldn’t, it wouldn’t have to come back to us. Roger Knutson: Approval of the change orders would come back to you. Mayor Laufenburger: Oh the change orders do come back to us? Roger Knutson: Yes. Mayor Laufenburger: So if there’s any change orders they would have to come back to us. Roger Knutson: Because you approved the contract. Mayor Laufenburger: Okay, alright. Mr. McDonald you wanted to say something. Councilman McDonald: Well yes Mr. Mayor. I understand where you’re going with this but the danger that we’re going to run into is you’re going to drive the cost of this above what the bid is. I mean I made a living on change orders and that’s what you do. That’s where you make your money because at that point you’re not governed by anything in the contract and they could renegotiate every line item down through there and say well if you change this it impacts that. This is what it’s going to cost you. I think we’re crossing into dangerous territory to where suddenly this thing is just going to mushroom out of control. Mayor Laufenburger: You’re saying we’re crossing, if we direct staff to do that. 120 Chanhassen City Council – July 10, 2017 Councilman McDonald: Right. That is my fear that if you direct staff to do that we are basically giving the contractor a blank check to say well, if you’re going to do that then this is what it’s going to cost you to take these out and we have no recourse at that point. Roger Knutson: Mayor I’d just add one thing. You can always reject the change order. Mayor Laufenburger: Oh the council has the prerogative to reject the change order, yeah. Councilwoman Ryan: But Mr. Mayor, how is that any? Mayor Laufenburger: Councilmember Ryan. Councilwoman Ryan: How is that any different than, I mean initially they, it was come look at the, I’m sorry it’s late. My words aren’t coming. But come look at the campus. City Hall campus and put together a proposal and them knowing, what? Mayor Laufenburger: Keep going. Councilwoman Ryan: You know and they put everything into this plan or this proposal for us without an opportunity for us to go through it and reduce the total amount. How I mean? Mayor Laufenburger: Well my idea originally of giving the staff the direction to modify the amount of work done to reduce it, that would get this project underway but as Mr. McDonald points out I think it opens us up for, if we’re going to change one item then we have to notify and negotiate to change other items and we lose the strength of awarding the bid as specified. I also want to correct that the staff report incorrectly indicates that this requires a two-thirds vote of the City Council. It requites a simple majority of the City Council so. Any other comments? I’m looking, let’s see do we have a motion? We do. Todd Gerhardt: A first and a second. Mayor Laufenburger: Jerry and Bethany, okay. Any further discussion? Councilman McDonald moved, Councilwoman Tjornhom seconded that the City Council accepts the City Hall Exterior Landscaping Bids and Awards the Contract to Blackstone Contractors LLC in the amount of $365,835 which includes the base bid and alternate #2. All voted in favor, except Councilman Campion and Councilwoman Ryan who opposed, and the motion carried with a vote of 3 to 2. Mayor Laufenburger: Okay that concludes our normal business. Now council presentations. COUNCIL PRESENTATIONS. None. ADMINISTRATIVE PRESENTATIONS. Mayor Laufenburger: Mr. Gerhardt anything? 121 Chanhassen City Council – July 10, 2017 Todd Gerhardt: I think the one item I was going to update you on, Councilmember Ryan talked about the vision process as a part of the Venue. We will look for public input on that. Not just downtown businesses and get going on that as Kate mentioned within the next 3 months so we can bring it back to you. Mayor Laufenburger: I would just point out, was there anything else Mr. Gerhardt? Todd Gerhardt: No. Mayor Laufenburger: I would also point out that earlier this evening in the work session we received the audit report and for the umpteenth year in a row we have a, I should be more accurate with that number but we received a clean audit. Clean opinion on the financial reporting of the City of Chanhassen and also received the Certificate of Excellence from the GOFA I think is that what it’s called? Todd Gerhardt: For last year. Mayor Laufenburger: For last year. From 2015. Todd Gerhardt: We will be submitting for this year’s audit and you should get that results in November-December. Mayor Laufenburger: And that financial report, as is true with all of our financial documents will be made available on the website so congratulations to Mr. Sticha and his staff on the successful audit. With that is there any question about the correspondence packet? Have a motion to adjourn? Councilwoman Ryan moved, Councilman McDonald seconded to adjourn the meeting. All voted in favor and the motion carried unanimously with a vote of 5 to 0. The City Council meeting was adjourned at 11:50 p.m. Submitted by Todd Gerhardt City Manager Prepared by Nann Opheim 122