CC Staff Report 10-22-18CITY COUNCIL STAFF REPORT
Monday, October 22, 2018
Subject Resolution 201852: Consider Modifying Stipulation Agreement for the Mustard Seed (Halla
Nursery, Inc.)
Section NEW BUSINESS Item No: H.2.
Prepared By MacKenzie Walters, Assistant Planner File No:
PROPOSED MOTION
“The City Council approves the resolution authorizing an additional use and additional retail sales for the Mustard
Seed (Halla Nursery, Inc.).”
Approval requires a Simple Majority Vote of members present.
SUMMARY
Mr. Halla is requesting that the City Council amend and update the 1997 stipulation agreement that governs the use of
the subject property. The request is to add additional items to Exhibit “B” Permitted Products of the stipulation
agreement. These items are accessories, food/drinks/snacks, handicrafts, food trucks, personal care products, and
gifts and decorations.
BACKGROUND
The use of the property is governed by a 1997 court stipulation agreement that is binding to both parties. The
stipulation explicitly lists what buildings are allowed on the property, what the different areas of the property may be
used for, and products may be sold and where they may be sold. It also specifies that the property is subject to the
requirements of the city’s zoning ordinance, except for as detailed in the stipulation agreement.
The stipulation agreement allows for uses not listed in the stipulation agreement to be added, if approved by the City
Council. The agreement requires the prior written approval of the city for the expansion or relocation of buildings and
outdoor areas where sales are permitted. Finally, the agreement requires the prior written consent of the city in order
to add items to the list of permitted products.
The full text of the stipulation agreement is provided as an attachment.
DISCUSSION
Staff feels that food/drinks/snacks is a very broad category that could be understood to significantly expand the
property's retail activities beyond what is permitted in the stipulation agreement. Staff instead proposes adding pre
packaged snacks and nonalcoholic beverages which would limit food sales to small incidental items prepared offsite.
CITY COUNCIL STAFF REPORTMonday, October 22, 2018SubjectResolution 201852: Consider Modifying Stipulation Agreement for the Mustard Seed (HallaNursery, Inc.)Section NEW BUSINESS Item No: H.2.Prepared By MacKenzie Walters, Assistant Planner File No: PROPOSED MOTION“The City Council approves the resolution authorizing an additional use and additional retail sales for the MustardSeed (Halla Nursery, Inc.).”Approval requires a Simple Majority Vote of members present.SUMMARYMr. Halla is requesting that the City Council amend and update the 1997 stipulation agreement that governs the use ofthe subject property. The request is to add additional items to Exhibit “B” Permitted Products of the stipulationagreement. These items are accessories, food/drinks/snacks, handicrafts, food trucks, personal care products, andgifts and decorations.BACKGROUNDThe use of the property is governed by a 1997 court stipulation agreement that is binding to both parties. Thestipulation explicitly lists what buildings are allowed on the property, what the different areas of the property may beused for, and products may be sold and where they may be sold. It also specifies that the property is subject to therequirements of the city’s zoning ordinance, except for as detailed in the stipulation agreement.The stipulation agreement allows for uses not listed in the stipulation agreement to be added, if approved by the CityCouncil. The agreement requires the prior written approval of the city for the expansion or relocation of buildings andoutdoor areas where sales are permitted. Finally, the agreement requires the prior written consent of the city in orderto add items to the list of permitted products.The full text of the stipulation agreement is provided as an attachment.DISCUSSIONStaff feels that food/drinks/snacks is a very broad category that could be understood to significantly expand theproperty's retail activities beyond what is permitted in the stipulation agreement. Staff instead proposes adding pre
packaged snacks and nonalcoholic beverages which would limit food sales to small incidental items prepared offsite.
Regarding food trucks, the stipulation agreement does not allow events to be held on the property. Temporary outdoor
sales and events are not a permitted use within the city’s Agricultural Estate (A2) District, nor does the zoning or
stipulation agreement permit the use of the property as an event center. The stipulation agreement also limits permitted
uses of area “R,” the area that is most conducive to outdoor sales/events, to the “storage, growing and outdoor display
of plant materials, or temporary storage of supplies on pallets or wheels, excluding trailers longer than 16 feet.” Finally,
Section 7.A prohibits the use of area “P,” parking, for anything other than parking.
Staff is not opposed to Mr. Halla using food trucks and outdoor events to promote and enhance his business;
however, staff feels it is important to insure that all businesses receive equal treatment. It has been city policy to
consider businesses hosting food trucks as a way of promoting their business and drawing in additional customers to
constitute an outdoor sale/event.
Staff proposes adding “Food trucks for temporary outdoor sales and events, subject to the requirements of the City
Code and receipt of a temporary event permits from the city ” to the list of permitted uses contained in the first section of
the stipulation agreement. This approach would ensure that the property’s outdoor events are subject to the same
standards as every other business in the city.
For a full analysis, please see the attached staff report.
RECOMMENDATION
Staff recommends that the City Council approve the attached resolution authorizing an additional use and additional
retail sales for the property.
ATTACHMENTS:
Staff Report
Stipulation Agreement
Agricultural Estate District (A2)
Mustard Seed Annual Events Described 6518
Resolution
MEMORANDUM
TO: Todd Gerhardt, City Manager
FROM: MacKenzie Walters, Assistant Planner
DATE: October 22, 2018
SUBJ: Additional Use and Additional Retail Sales for Halla Nursery, Inc.
PROPOSED MOTION:
“The Chanhassen City Council approves the resolution authorizing an additional use and
additional retail sales for Halla Nursery, Inc.”
PROPOSAL
Mr. Halla is requesting that the City Council amend and update the 1997 stipulation agreement
that governs the use of the subject property. The request is to add additional items to Exhibit “B”
- Permitted Products of the stipulation agreement.
The existing list of permitted products is presented below in black text with Mr. Halla’s proposed
additions listed in red. For new items, staff has included proposed location restrictions in black
text that reflect the restrictions placed on similar items in the existing list of permitted products.
Exhibit “B”- Permitted Products
Products for the installation, sales, care, maintenance and ornamentation of plants, lawns,
animals and other landscape features (1, 2, 3, 4).
Fertilizers (1, 2) Patio Products (1, 2)
Herbicides (1) Ornamental Items (1, 2)
Fungicides (1) Water Products (1, 2)
Bird Supplies (1) Bulk Soils (2)
Bird Feeders (1, 4) Bagged Mulches (1, 2)
Bird Houses (1, 4) Bulk Mulches (2)
Bird Baths (1, 2, 4) Bagged Soil (1, 2)
Weed Barrier Fabric and Pins (1,2) Site Furniture (1, 2)
Power and Hand Tools (1) Consultations (1, 2, 3)
Seeds (1) Gauges (1)
Spreaders (1) Twine (1)
Watering Equipment (1,2) Poly (1)
Todd Gerhardt
Mustard Seed (Halla Nursery):
Additional Use and Retail Sales
October 22, 2018
Page 2
Informational Text (1) Cloth and Netting (1)
Ponds (1, 2, 3, 4) Plant Supports (1, 4)
Statuary (1, 2, 3, 4) Fountains (1, 2, 4)
Fencing (1, 2) Fish and Water Plans (1, 2, 4)
Trellises (1, 2, 3, 4) Straw/Marsh Hay (2)
Gazebos (1, 2, 3) Labels (1)
Lighting (1, 3) Birds (1, 2)
Christmas Trees and Accessories (1, 2, 4) Landscape Designs (2, 3)
Bulbs (1) Labor (2, 3)
Clothing and Accessories (1, 2, 4) Maintenance (2, 3)
Pesticides (1) Snow Plowing (2, 3)
Chimes (1, 2, 4) Installations (2, 3)
Pottery (1, 2, 4) Construction (2, 3)
Animal Repellents (1) Reconstruction (2, 3)
Sod (2) Removal (2, 3)
Wood Ties (2) Delivery (1, 2, 3)
Tool and Equipment Rental (1, 2, 3) Boulders (2)
Soil Amendments (1, 2, 3) Sand (2)
Tree, Shrub & Plant Materials (1, 2, 3, 4) Edging (1, 2)
Insurance/Damage Evaluations (1,3) Structures (1, 2)
Gift Certificates (1, 3) Outdoor Living Accessories (1, 2, 3, 4)
Game/Farm Animals and Supplies (1, 2, 4) Playground Equipment (1, 2)
Retaining Wall Products (2) Drain Tile and Accessories (1, 2)
Food/Drinks/Snacks (1, 2, 4) Personal Care Products (1, 2, 4)
Handicrafts (1, 2, 4) Gifts and Decorations (1, 2, 4)
Food Trucks (2)*
Miscellaneous items, plants or materials for the aesthetic, practical, improvement, or use of
indoor and outdoor living spaces (1, 2, 3, 4).
1) Indoor sales from the garden center.
2) Outdoor sales.
3) Indoor sales form the office.
4) Sales from the greenhouses identified as Buildings C & E on Exhibit A.
* The asterisk on food trucks would then correspond to our annual events as per attached
(Mustard Seed Annual Events Described 6-5-18).
ANALYSIS
Issue 1: Stipulation Agreement (Brief)
Todd Gerhardt
Mustard Seed (Halla Nursery):
Additional Use and Retail Sales
October 22, 2018
Page 3
The use of the property is governed by a 1997 Court Stipulation agreement that is binding to
both parties. The stipulation agreement explicitly lists what buildings are allowed on the
property, what the different areas of the property may be used for, and what products may be
sold and where they may be sold. It also specifies that the property is subject to the requirements
of the city’s zoning ordinance, except for as detailed in the stipulation agreement.
The stipulation agreement allows for uses not listed in the stipulation agreement to be added, if
approved by the City Council. The agreement requires the prior written approval of the city for
the expansion or relocation of buildings and outdoor areas where sales are permitted. Finally, the
agreement requires the prior written consent of the city in order to add items to the list of
permitted products.
The full text of the stipulation agreement is provided as an attachment.
Issue 2: Proposed Additions to List of Permitted Products
Proposed Item Staff assessment
Food/Drinks/Snacks This very broad category could encompass anything from a
vending machine to on-site food preparation and sales. Staff
proposes instead adding “Pre-packaged snacks and non-
alcoholic beverages” to the list. This would permit the sale of
small incidental food items, sodas, and juices, and be in line with
what staff understands to be currently available on the property.
Handicrafts Staff has no concerns with this proposed addition, and feels it is
comparable to what is currently being sold on the property.
Clothing and Accessories Staff has no concerns with this proposed addition, and feels it is
comparable to what is currently being sold on the property.
Personal Care Products Staff has no concerns with this proposed addition, and feels it is
comparable to what is currently being sold on the property.
Gifts and Decorations Staff has no concerns with this proposed addition, and feels it is
comparable to what is currently being sold on the property.
Food Trucks Staff is concerned that adding food trucks to the list of permitted
products would not be consistent with how other businesses within
the city are treated. Staff instead proposes adding “Food trucks
for temporary outdoor sales and events, subject to the
requirements of City Code and receipt of a temporary event
permits from the city” to the list of permitted uses in section one
of the stipulation agreement. Staff’s rationale for this
recommendation will be addressed in the following section.
Todd Gerhardt
Mustard Seed (Halla Nursery):
Additional Use and Retail Sales
October 22, 2018
Page 4
Issue 3: Events
As it is currently written, the stipulation agreement does not allow events to be held on the
property. Temporary outdoor sales and events are not a permitted use within the city’s
Agricultural Estate (A-2) District, nor does the zoning or stipulation agreement permit the use of
the property as an event center. The stipulation agreement also limits permitted uses of area “R”,
the area that is most conducive to outdoor sales/events, to the “storage, growing and outdoor
display of plant materials, or temporary storage of supplies on pallets or wheels, excluding
trailers longer than 16 feet”. Finally, Section 7.A prohibits the use of area “P”, parking, for
anything other than parking.
Staff is not opposed to Mr. Halla using food trucks and outdoor events to promote and enhance
his business; however, staff feels it is important to insure that all businesses receive equal
treatment. It has been city policy to consider businesses hosting food trucks as a way of
promoting their business and drawing in additional customers to constitute an outdoor sale/event.
For example, Lunds and Byerlys was required to apply for and receive a temporary event permit
to have the Oscar Mayer wienermobile sell hot dogs in their parking lot earlier this year and the
AutoMotorplex is required to get temporary event permits for their Summer Night events due to
the presence of food trucks. Staff believes that adding food trucks to the list of permitted retail
items tied to a list of annual events that essentially covers every day of the year would grant the
Mustard Seed the ability to hold outdoor events significantly beyond what any other business in
the community is allowed. Additionally, many of the events provided in “Mustard Seed Annual
Events Described 6-5-2018” are described in very vague and expansive terms. For example,
religious/spiritual/personal events could conceivably encompass anything from a small private
bible study meeting, which would not require an event permit, to renting the property out for a
large wedding, an activity that would not be allowed by the temporary event ordinance,
stipulation agreement, or property’s A-2 zoning.
Staff instead proposes adding “Food trucks for temporary outdoor sales and events, subject to the
requirements of the City Code and receipt of a temporary event permits from the city” to the list of
permitted uses contained in first section of the stipulation agreement. Under the city’s temporary
outdoor event ordinance, businesses are allowed up to 15 days per calendar year of temporary
outdoor events and up to four special events (maximum duration of seven days per event), and
up to three seasonal sales (total of 120 days per year). Outdoor sales activities allowed by the
stipulation agreement would not require any additional permits; however, it would provide a
mechanism for allowing the outdoor farmer’s markets mentioned in the provided list of annual
events. This approach would ensure that the property’s outdoor events are subject to the same
standards as every other business in the city.
The City’s temporary outdoor sales and events ordinance is comprehensive and provides
guidelines as to what constitutes an event. Staff would require an expanded and clarified version
Todd Gerhardt
Mustard Seed (Halla Nursery):
Additional Use and Retail Sales
October 22, 2018
Page 5
of the “Mustard Seed Annual Events Described 6-5-2018” in order to determine which activities
constitute temporary outdoor sales and events.
The provided list of annual events indicates that the property may also be being used to host
indoor events including music and catered food and alcohol. These types of events, so long as
they occurred entirely indoors, would not fall under the jurisdiction of the city’s outdoor sales
and events ordinance; however, the stipulation agreement and property’s zoning does not allow
for the use of the property as an event center, nor does it allow for the sale of food and alcohol on
the property. Permitting catered events, especially those with alcohol services, would represent a
significant expansion of business activities from what is currently permitted.
When other properties zoned A-2 have approached city staff about the possibility of renting out
barns for weddings and other events, they have been informed that their zoning does not allow
for event centers. Staff requests direction from the City Council on if catering and alcohol
service should be permitted on this site.
BACKGROUND
On May 31, 2018, staff was informed that the Mustard Seed Garden Center was conducting
activities that fell under the category of temporary outdoor sales and events.
On May 31, 2018, staff contacted Mr. Halla and informed him that the city typically required
permits for these types of events, and requested that he apply for an event permit.
June 1, 2018, Mr. Halla informed staff that he did not feel he required permits to host these
events due to the 1997 stipulation agreement and the fact that they have historically held
gatherings at the site.
On June 4, 2018, staff met with Mr. Halla to discuss the issue. Staff noted that events and some
of the activates conducted in conjunction with them were not allowed by the stipulation
agreement, and proposed using the city’s event permitting process as a mechanism for granting
prior written approval of the city for allowing a temporary expansion of permitted
products/activities. Mr. Halla agreed to provide the city with a list of events, from which the city
would identify events that were outside the scope of the stipulation agreement and which would
require a permit. Mr. Halla was informed that a permanent change to the stipulation agreement
would require action by the City Council.
On June 5, 2018, Mr. Halla provided the city with a list that covered a wide variety of activities.
(see Mustard Seed Annual Events Described 6-5-18) .
On June 6, 2018, staff requested that Mr. Halla clarify the provided list, as the information
provided was not sufficient to allow staff to understand the nature and extent of the proposed
activities.
Todd Gerhardt
Mustard Seed (Halla Nursery):
Additional Use and Retail Sales
October 22, 2018
Page 6
On June 6, 2018, Mr. Halla indicated that he did not have time to provide the requested
information, and indicated he was interested in amending the stipulation agreement.
On October 8, 2018, Mr. Halla requested that his stipulation agreement be amended.
ATTACHEMENTS:
1) Stipulation Agreement
2) Agricultural Estate District (A-2)
3) Mustard Seed Annual Events Described 6-5-18
4) Proposed Resolution
ARTICLE X. - "A-2" AGRICULTURAL ESTATE DISTRICT
Sec. 20-571. - Intent.
The intent of the "A-2" District is preservation of rural character while respecting development
patterns by allowing single-family residential development.
(Ord. No. 80, Art. V, § 3(5-3-1), 12-15-86)
Sec. 20-572. - Permitted uses.
The following are permitted uses in an "A-2" District:
(1) Agriculture.
(2) Antennas as regulated by article XXX of this chapter.
(3) Arboretums.
(4) Day care center for 12 or fewer children.
(5) Group home for six or fewer persons.
(6) Public and private parks and open space.
(7) Single-family dwellings.
(8) Temporary real estate office or model home.
(9) Utility services.
(Ord. No. 80, Art. V, § 3(5-3-2), 12-15-86; Ord. No. 259, § 7, 11-12-96; Ord. No. 377, § 74, 5-
24-04)
Sec. 20-573. - Permitted accessory uses.
The following are permitted accessory uses in an "A-2" District:
(1) Accessory agricultural building.
(2) Garage.
(3) Private stables.
(4) Swimming pool.
(5) Tennis court.
(6) Signs.
(7) Home occupations.
(8) One dock.
(9) Roadside stand.
(10) Private kennel.
(Ord. No. 80, Art. V, § 3(5-3-3), 12-15-86)
Sec. 20-574. - Conditional uses.
The following are conditional uses in an "A-2" District:
(1) Reserved.
(2) Reserved.
(3) Reserved.
(4) Cemetery.
(5) Reserved.
(6) Reserved.
(7) Reserved.
(8) Reserved.
(9) Electrical distribution and underground electric distribution substations.
(10) Reserved.
(11) Churches.
(12) Recreational beach lots.
(13) Group homes for seven to 16 persons.
(14) Golf courses.
(15) Towers as regulated by article XXX of this chapter.
(Ord. No. 80, Art. V, § 3(5-3-4), 12-15-86; Ord. No. 80-E, § 1, 11-16-87; Ord. No. 96, § 1, 9-26-
88; Ord. No. 103, § 1, 5-22-89; Ord. No. 120, § 4(2), 2-12-90; Ord. No. 240, § 16, 7-24-95; Ord.
No. 259, § 8, 11-12-96; Ord. No. 390, § 4, 3-14-05)
State Law reference— Conditional uses, M.S. § 462.3595.
Sec. 20-575. - Lot requirements and setbacks.
The following minimum requirements shall be observed in an "A-2" District subject to additional
requirements, exceptions, and modifications set forth in this chapter:
(1) The minimum lot area is two and one-half acres, subject to section 20-906. A one-unit per ten-
acre gross density shall be maintained for proposed lots outside the approved Metropolitan
Urban Services Area in effect at the time of a proposed development. This requirement shall not
apply to lots of record in existence on January 15, 1987 or lots created thereafter if they were
subject to a pending subdivision application on that date and the lots were created as a result of
that application. The one-unit per ten-acre density applies to contiguous property under single
ownership. Acreage under single ownership, which is not contiguous, cannot be combined for
increased density/building eligibility on one of the parcels. Once a building eligibility has been
used for a property, a development contract must be recorded with the county establishing the
number of building eligibilities remaining or documenting that no building eligibility remains.
(2) The minimum lot frontage is 200 feet, except that the minimum lot frontage of lots fronting on a
cul-de-sac shall be at least 200 feet at the building setback line.
(3) The minimum lot depth is 200 feet, except that lots fronting on a cul-de-sac shall be at least
200 feet at the building setback line.
(4) The maximum lot coverage is 20 percent.
(5) The minimum setbacks are as follows:
a. For front yards, 50 feet.
b. For rear yards, 50 feet.
c. For side yards, ten feet.
(6) The maximum height is as follows:
a. For the principal structure, three stories/35 feet.
b. For accessory structures, three stories/35 feet.
(7) The minimum driveway separation is as follows:
a. If the driveway is on a collector street, 400 feet.
b. If the driveway is on an arterial street, 1,250 feet.
(Ord. No. 80, Art. V, § 3(5-3-5), 12-15-86; Ord. No. 170, § 1, 7-23-92; Ord. No. 194, § 1, 10-11-
93; Ord. No. 332, § 1, 12-10-01; Ord. No. 377, § 75, 5-24-04)
Sec. 20-576. - Interim uses.
The following are interim uses in the "A-2" District:
(1) Reserved.
(2) Mineral extraction.
(3) Reserved.
(4) Manufactured homes (compliance with section 20-905 is not required).
(5) Bed and breakfast establishments.
(6) Commercial kennels, stables and riding academies.
(7) Wholesale nurseries.
(8) Golf driving ranges with or without miniature golf courses.
(9) Petting farms.
(Ord. No. 120, § 3, 2-12-90; Ord. No. 140, § 1, 3-11-91; Ord. No. 240, § 17, 7-24-95; Ord. No.
306, § 3, 7-24-00; Ord. No. 377, § 76, 5-24-04)
Secs. 20-577—20-590. - Reserved.
*Mustard Seed Annual Events:
• Daily Events (retail/wholesale sales year-round)
• Planting Events (generally early spring, mid-summer,
late fall and late winter)
• Holiday Events (Easter, Christmas, Memorial Day, Labor
Day, Fourth of July, other holidays)
• Family Events (generally Fridays-Sundays and may
include music, food, vendors, animals & petting zoo)
• Farmers Market Events (ongoing from within store and
outside parking areas)
• Christmas Tree Sales Events (November-December)
• Religious/Spiritual/Personal E vents (ongoing prayer,
celebrations, worship, etc…)
• Business/Community Events (recycling, Chamber of
Commerce, Rotary, BNI, Political, Scouts, 4H, Church,
tours, field trips, family outings, etc…)
*All music is inside the buildings or not amplified with
speakers (always in compliance with our Stipulation of Use).
Food and catering is served from our private property in
parking areas or within buildings. Animals are displayed
indoors and out (for obvious reasons :-). Parking attendants
are used as needed, if needed. Occupancy never exceeds
legal limits. Alcohol, if any, is only served as legally allowed
by law. All legal and applicable rules and ordinances
obeyed per law and stipulation of use.
199521v1
CITY OF CHANHASSEN
CARVER COUNTY, MINNESOTA
DATE: RESOLUTION NO:
MOTION BY: SECONDED BY:
RESOLUTION AUTHORIZING AN ADDITIONAL USE AND ADDITIONAL
RETAIL SALES FOR HALLA NURSERY, INC.
WHEREAS, City and Halla Nursery, Inc. (“Halla”) entered into a Stipulation for Entry
of Judgment dated February, 10, 1997 (“Stipulation”) concerning the property located at 10000
Great Plains Boulevard in the City of Chanhassen, Carver County, State of Minnesota (“Subject
Property”) and
WHEREAS, pursuant to the Stipulation Halla has requested the right to expand the uses
and permitted sales on the Subject Property.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chanhassen:
1. Pursuant to Paragraph 1 of the Stipulation, the following additional use is allowed on
the Subject Property:
Food trucks for temporary outdoor sales and events, subject to the requirements of the
City Code and receipt of a temporary event permits from the City.
2. Pursuant to Paragraph 3E of the Stipulation, the list of permitted products listed on
Exhibit “B” of the Stipulation that may be sold on the Subject Property is amended to add the
following products at the locations specified:
Clothing and Accessories (1,2,4)
199521v1
Pre-packaged snacks and non- alcoholic
beverages (1,2,4)
Handicrafts (1, 2,4)
Personal Care Products (1,2,4)
Gifts and Decorations (1, 2, 4)
1) Indoor sales from the Garden Center
2) Outdoor Sales
3) Indoor sales from the Office
4) Sales from the Greenhouses identified as Buildings C&E on Exhibit A of
the Stipulation
Passed and adopted by the Chanhassen City Council this ___ day of _______, 2018.
ATTEST:
Todd Gerhardt, City Manager Denny Laufenburger, Mayor
YES NO ABSENT