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03-02-21 Agenda and PacketAGENDA  CHANHASSEN PLANNING COMMISSION TUESDAY, MARCH 2, 2021, 7:00 PM CITY COUNCIL CHAMBERS, 7700 MARKET BOULEVARD ELECTRONIC MEETING Due to the COVID­19 pandemic, for the next few weeks it is anticipated that some or all members of the Planning Commission will participate in meetings by telephone and/or web conference pursuant to Minnesota Statutes, Section 13D.021, rather than in person at the Planning Commission’s regular meeting place in the Chanhassen City Hall Council Chambers, 7700 Market Boulevard, Chanhassen, Minnesota. The Public Hearings portion of the Planning Commission agenda allows for the public to provide comments on those agenda items. To help ensure an open public process, we have made accommodations for the public to continue to view and participate in public hearings by selecting one of two options: EMAIL your comments to the Planning Commission at pccomments@ci.chanhassen.mn.us.All comments received by 6:00 p.m.on the day of the meeting will be included as a part of the Planning Commission meeting. This is the Planning Commission’s preferred method of public participation. WATCH the meeting live online at www.ci.chanhassen.mn.us/agendas or on Mediacom Cable Channel 107.2. The meeting begins at 7:00 pm. PHONE in your comments at 952­227­1630 when the Chairman opens the desired public hearing for comment. The Chairman will take each call in the order received. For all options, you must provide your name and address for the record. A.CALL TO ORDER B.PUBLIC HEARINGS 1.Approve Proposed Ordinance Amending City Code Chapter 18 Concerning Tree Surveys and Chapter 20 Concerning Landscaping Standards 2.Approve Amending City Code Concerning Reconciling Intent Statements and Uses for Residential Low and Medium Density (RLM), Mixed Medium Density (R­8) and High Density Residential (R­12) Zoning Districts 3.Approve Amending City Code Concerning Increasing the Final Plat and Metes and Bounds Subdivision Recording Timeline to 120 Days C.NEW BUSINESS 1.Adopt a Resolution Affirming that the TIF District for the Lakes at Chanhassen Development is Consistent with the City's Comprehensive Plan D.APPROVAL OF MINUTES AGENDA CHANHASSEN PLANNING COMMISSIONTUESDAY, MARCH 2, 2021, 7:00 PMCITY COUNCIL CHAMBERS, 7700 MARKET BOULEVARDELECTRONIC MEETINGDue to the COVID­19 pandemic, for the next few weeks it is anticipated that some or all members of thePlanning Commission will participate in meetings by telephone and/or web conference pursuant toMinnesota Statutes, Section 13D.021, rather than in person at the Planning Commission’s regular meetingplace in the Chanhassen City Hall Council Chambers, 7700 Market Boulevard, Chanhassen, Minnesota.The Public Hearings portion of the Planning Commission agenda allows for the public to provide commentson those agenda items. To help ensure an open public process, we have made accommodations for thepublic to continue to view and participate in public hearings by selecting one of two options:EMAIL your comments to the Planning Commission at pccomments@ci.chanhassen.mn.us.Allcomments received by 6:00 p.m.on the day of the meeting will be included as a part of the PlanningCommission meeting. This is the Planning Commission’s preferred method ofpublic participation.WATCH the meeting live online at www.ci.chanhassen.mn.us/agendas or on Mediacom CableChannel 107.2. The meeting begins at 7:00 pm. PHONE in your comments at 952­227­1630 whenthe Chairman opens the desired public hearing for comment. The Chairman will take each call in theorder received.For all options, you must provide your name and address for the record.A.CALL TO ORDERB.PUBLIC HEARINGS1.Approve Proposed Ordinance Amending City Code Chapter 18 Concerning TreeSurveys and Chapter 20 Concerning Landscaping Standards2.Approve Amending City Code Concerning Reconciling Intent Statements and Usesfor Residential Low and Medium Density (RLM), Mixed Medium Density (R­8) andHigh Density Residential (R­12) Zoning Districts3.Approve Amending City Code Concerning Increasing the Final Plat and Metes andBounds Subdivision Recording Timeline to 120 DaysC.NEW BUSINESS1.Adopt a Resolution Affirming that the TIF District for the Lakes at ChanhassenDevelopment is Consistent with the City's Comprehensive Plan D.APPROVAL OF MINUTES 1.Approval of Planning Commission Minutes dated February 2, 2021 E.ADMINISTRATIVE PRESENTATIONS 1.Review of Legal Opinions 2.City Council Action Update F.ADJOURNMENT NOTE: Planning Commission meetings are scheduled to end by 10:30 p.m. as outlined in the official by­laws.  We will make every attempt to complete the hearing for each item on the agenda.  If, however, this does not appear to be possible, the Chairperson will notify those present and offer rescheduling options.  Items thus pulled from consideration will be listed first on the agenda at the next Commission meeting. If a constituent or resident sends an email to staff or the Planning Commission, it must be made part of the public record based on State Statute. If a constituent or resident sends an email to the Mayor and City Council, it is up to each individual City Council member and Mayor if they want it to be made part of the public record or not. There is no State Statute that forces the Mayor or City Council to share that information with the public or be made part of the public record. Under State Statute, staff cannot remove comments or letters provided as part of the public input process. PLANNING COMMISSION STAFF REPORT Tuesday, March 2, 2021 Subject Approve Proposed Ordinance Amending City Code Chapter 18 Concerning Tree Surveys and Chapter 20 Concerning Landscaping Standards Section PUBLIC HEARINGS Item No: B.1. Prepared By MacKenzie Young­Walters, Associate Planner File No:  PROPOSED MOTION: The Chanhassen Planning Commission recommends that the City Council adopt the proposed ordinance amending City Code Chapter 18 concerning tree surveys and Chapter 20 concerning landscaping standards. SUMMARY OF REQUEST Goal six of the city’s 2040 Comprehensive Plan’s Natural Resources Section is to “maintain a healthy and diverse urban forest.” One of the four policies enumerated to support this goal is “Continue to maintain a diversity of species in all public tree planting projects. At a minimum, use the 30­20­10 rule to select trees for projects.” The 30­20­10 rule is the principle that no more than 30 percent of trees should come from any one family, no more than 20 percent of trees should come from any one genus, and no more than 10 percent of trees should come from any one species. This minimum level of diversity helps to limit the amount of damage that a single disease, pest, or event can do to the city’s urban forest. While the City’s subdivision ordinance was amended to incorporate this standard in 2019, the City’s general landscaping standards were not amended to include a tree diversity requirement. Staff proposes amending the City Code to extend this standard to the general landscaping requirements in order to ensure that site plans and other projects align with 2040 Comprehensive Plan’s goals and policies. The City’s subdivision ordinance requires that applicants submit a tree survey in order to allow staff to evaluate the development’s impact on the natural environment and ensure compliance with the City’s tree preservation and canopy coverage requirements; however, unlike other environmental studies required by the City, there is no requirement that the tree survey be current. In some cases tree studies done many years prior to the subdivision application are submitted to meet this requirement. Since natural features like trees and forests change over time, this can lead to situations where the conditions represented by the submitted survey no longer reflect the conditions on the site. In order to ensure that the City has accurate information from which to determine a project’s compliance with the City’s tree preservation requirements, staff recommends amending the City Code to require that the submitted tree survey be no more than two years old. A full discussion of the proposed amendment can be found in the attached issue paper. APPLICATION REGULATIONS PLANNING COMMISSION STAFFREPORTTuesday, March 2, 2021SubjectApprove Proposed Ordinance Amending City Code Chapter 18 Concerning Tree Surveys andChapter 20 Concerning Landscaping StandardsSectionPUBLIC HEARINGS Item No: B.1.Prepared By MacKenzie Young­Walters, AssociatePlanner File No: PROPOSED MOTION:The Chanhassen Planning Commission recommends that the City Council adopt the proposed ordinance amendingCity Code Chapter 18 concerning tree surveys and Chapter 20 concerning landscaping standards.SUMMARY OF REQUESTGoal six of the city’s 2040 Comprehensive Plan’s Natural Resources Section is to “maintain a healthy and diverseurban forest.” One of the four policies enumerated to support this goal is “Continue to maintain a diversity of species inall public tree planting projects. At a minimum, use the 30­20­10 rule to select trees for projects.” The 30­20­10 rule isthe principle that no more than 30 percent of trees should come from any one family, no more than 20 percent of treesshould come from any one genus, and no more than 10 percent of trees should come from any one species. Thisminimum level of diversity helps to limit the amount of damage that a single disease, pest, or event can do to the city’surban forest. While the City’s subdivision ordinance was amended to incorporate this standard in 2019, the City’sgeneral landscaping standards were not amended to include a tree diversity requirement. Staff proposes amending theCity Code to extend this standard to the general landscaping requirements in order to ensure that site plans and otherprojects align with 2040 Comprehensive Plan’s goals and policies.The City’s subdivision ordinance requires that applicants submit a tree survey in order to allow staff to evaluate thedevelopment’s impact on the natural environment and ensure compliance with the City’s tree preservation and canopycoverage requirements; however, unlike other environmental studies required by the City, there is no requirement thatthe tree survey be current. In some cases tree studies done many years prior to the subdivision application aresubmitted to meet this requirement. Since natural features like trees and forests change over time, this can lead tosituations where the conditions represented by the submitted survey no longer reflect the conditions on the site. In orderto ensure that the City has accurate information from which to determine a project’s compliance with the City’s treepreservation requirements, staff recommends amending the City Code to require that the submitted tree survey be nomore than two years old.A full discussion of the proposed amendment can be found in the attached issue paper. APPLICATION REGULATIONS Sec. 18­61 – This section outlines the subdivision ordinance’s landscaping and tree preservation requirements, including the 30­20­10 rule and tree survey requirement. Sec. 20­1183 – This section lists the landscaping requirements that are applied to site plan reviews. BACKGROUND Staff presented this item to the City Council during their August 24, 2020 work session and was instructed to bring it before the Planning Commission for a public hearing.  RECOMMENDATION Staff recommends that the City Code be amended to include the tree diversity standards within the landscaping requirements and to require tree surveys to be no older than two years old. ATTACHMENTS: Staff Report CNYMCHAI'IHASSXI'I MEMORANDUM FROM: Planning Commission MacKenzie Young-Walters, Associate Planner March2,202l S[IBJ: Tree Diversity Standards and Inventory Expiration ISSUES While the subdivision ordinance was amended in 2019 to reflect the 2040 Comprehensive Plan's tree diversity standards, the portion of the ordinance that governs general landscaping standards was not amended to incorporate these standards. The city's subdivision ordinance requires that a tree survey be submitted as part of the subdivision process, but does not require that the survey be current. Goal six ofthe city's 2040 Comprehensive Plan's Natural Resources Section is to "maintarn a healthy and diverse urban forest". One ofthe four policies enumerated to support this goal is "Continue to maintain a diversity of species in all public tree planting projects. At a minimum, use the 30-20-10 rule to select trees for projects." The 30-20-10 rule is the principle that no more than 30 percent oftrees should come from any one family, no more than 20 percent of trees should come from any one genus, and no more than 10 percent oftrees should come from any one species. This minimum level of diversity helps to limit the amount of damage that a single disease, pest, or event can do to the city's urban forest. While the city's subdivision ordinance was amended to incorporate this standard in 2019, the city's general landscaping standards were not amended to include a tree diversity requirement. Staff proposes amending the City Code to extend this standard to the general landscaping requirements in order to ensure that site plans and other projects align with 2040 Comprehensive Plan's goals and policies. The city's subdivision ordinance requires that applicants submit a tree survey in order to allow staff to evaluate the development's impact on the natural environment and ensure compliance pH 952.227.1 I 00 . www.ci.chanhassen.mn.us . FX 952.227.111 0 TfOO I4ARKEI BOULEVARD .PO BOX I4T.CHANHASSEN .IYINNESOTA 55317 Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow TO: DATE: PROPOSED MOTION: "The Chanhassen Planning Commission recommends that the City Council adopt the proposed ordinance amending City Code Chapter l8 conceming tree surveys and Chapter 20 conceming landscaping standards." SUMMARY Tree Diversity Standards and Inventory Expiration March2,202l Page 2 with the city's tree preservation and canopy coverage requirements; however, unlike other environmental studies required by the city, there is no requirement that the tree survey be current. [n some cases tree studies done many years prior to the subdivision application are submitted to meet this requirement. Since natural features like trees and forests change over time, this can lead to situations where the conditions represented by the submitted survey no longer reflect the conditions on the site. In order to ensue that the city has accurate information from which to determine a project's compliance with the city's tree preservation requirements, staff recommends amending the City Code to require that the submitted tree survey be no more than two years old. RELE VANT CITY CODE Sec. l8-61 - This section outlines the subdivision ordinance's landscaping and tree preservation requirements, including the 30-20-10 rule and tree survey requirement' Sec. 20-l 183 - This section lists the landscaping requirements that are applied to site plan reviews. ANALYSIS Issue 1: Landscape Standards The city recently adopted the 2040 Comprehensive Plan which contains a new policy related to the city's goal of maintaining a healthy and diverse urban forest. As part ofthe comprehensive planning process, the city is required to update its code ofordinances to align with the policies of the Comprehensive Plan. The city updated the subdivision ordinance to reflect these policies in May of20l9; however, the city's landscaping requirements do not currently contain any tree diversity requirement. These landscaping requirements come into play during site plan reviews, and adding a diversity requirement will help ensure that a development's landscaping plans have the mix oftrees needed to create a resilient urban forest. The importance ofa diverse urban forest has been highlighted by the devastating effects of Dutch elm disease and emerald ash borer. In these cases, a single disease or insect killed millions of trees in cities, the effects worsened due to a lack of tree diversity. Diversity is key to a healthy urban forest. To put it simply, different trees are susceptible to different pests, different kinds of weather and different kinds of damage so by consciously choosing a variety oftrees, an urban forest becomes less vulnerable to outbreaks, climate change and severe weather. When there is a loss in a ciry's tree cover, it represents notjust the loss of money entailed in removing and replacing the stricken trees, but also the loss of shade, water management, aesthetics, and air quality improvements associated with community c,rnopy cover. Having a high density ofa single type oftree makes it easier for pests and diseases to spread and harder to manage an outbreak. It also means that a single pest or disease can have devastating effects on neighborhoods with an overabundance of a single species. When a developer or a city relies too heavily on a single species, genus or family, it creates a vulnerability within that Tree Diversity Standards and Inventory Expiration March2,2021 Page 3 neighborhood. Significant tree loss in any neighborhood is heavily felt, emotionally, socially and financially by the neighborhood and city. Having a diversity oftree types provides resiliency and cost savings to everyone in the community. There will always be threats to the health and sustainability ofour city's canopy, but one of the best ways to protect the city's urban forest is to ensure a measured diversity of trees. A wider variety oftrees decreases the susceptibility ofour urban forest, reduces the speed at which an outbreak can spread, and increases the feasibility ofeffectively and efficiently responding to serious events, whether they be biological or weather-related. In order to ensure that adequate tree diversity is present throughout the city, staff is proposing adding a standard to the city's landscaping requirements stating that no more than ten percent of the trees may be from any one tree species, no more than 20 percent ofthe trees may be from any one genus, and no more than 30 percent oftrees from any one family. Issue 2: Tree Sumey The city's subdivision ordinance requires that developers submit various documents depicting the properties'. Examples of these documents include wetland delineations, topographic surveys, and tree surveys. The information provided by these items allows staff to assess the proposed development's impact on the natural environment and compliance with City Code' While topographic fearures tend to remain relatively static over time, both wetland delineations and tree surveys describe living systems that can change significantly in a handful ofyears. In recognition ofthis, the city requires wetland delineations be no older than three years; however, tree surveys do not have a similar requirement. This has led to situations where the city is asked to evaluate a subdivision's compliance with the city's tree preservation and canopy coverage requirements based on tree surveys that no longer accurately reflect the conditions on the property. Often times this happens when an initial tree survey is submitted as part ofa subdivision that does not go forward, then many years later the proposal is resubmitted with the applicant presenting the original tree survey. Of particular concem is that fact that the city requires tree surveys to note damaged and diseased trees as well as trees over a specified size. This information is used by city staff to help determine which trees it is most important to preserve as well as which trees need to be removed. In cases where many years have passed between the initial tree survey and the submitted application trees that were previously damaged or diseased may have died, previously healthy trees may have become damaged or diseased, and existing trees may have gown to a size where the City Code would require their inclusion in a tree survey. All ofthese factors can potentially change how the city's landscaping and tree preservation requirements apply to the site' In order to address this concem and ensure that the city has accurate and up-to-date information, staff is proposing amending the City Code to require that tree survey's be no older than two years old. Within this time period, there will be changes to trees on a property as they grow larger, but barring any catastrophic impact by weather or biologicals, the overall change will be less significant. Beyond that time period, tree growth and health changes become more noticeable. It would always be in the best interest ofthe developer and city to have the most current inventory possible, but the two-year period allows for somewhat recent inventory work to still be applicable. 2) Amend the City Code to adopt the 30-20-10 rule and establish a statute of limitations tbr tree surveys. MMENDATI Staff recommends Altemative 2 which will bring the landscaping section of the City Code in line with the tree diversity policy stated in the 2040 Comprehensive Plan and ensure that accurate tree surveys are submitted as part of the subdivision process. The proposed amendments would read as follows: Sec. I 8-61. - Landscaping and tree preservation requirements. (d) The following standards shall be used in evaluating subdivisions and site plans: ( 1) It is a policy of the City of Chanhassen 10 protect the integrity of the natural environment through the preservation, protection, and planting oftrees. The city finds that fiees provide many benefits including: stabilization ofthe soil by the prevention of erosion and sedimentation, reduction of stormwater runoff and the costs associated therewith, improvement of air quality, reduction of noise pollution, control of urban heat island effect, protection and increase of property values, protection ofprivacy, energy conservation through natural insulation, control of drainage and restoration of denuded soil subsequent to constuction and grading, protection from severe weather, providing habitat for birds and other wildlife, conservation and enhancement of city's physical and aesthetic environment, reforestation of open lands, and general protection and enhancement ofthe quality of life and general welfare ofthe city. It is therefore the purpose ofthis section to provide regulations related to the cutting, removal, or killing of trees on construction and development sites and to ensure the protection and preservation of the natural environment and beauty ofthe City of Chanhassen. (2) Prior to the submittal of development plans, a tree survey of the site shall be prepared by a registered landscape architect, licensed forester, or other professional approved by the ciry. The tree survey shall reflect conditions on site at the time of submittal, or shall have been reviewed and updated no more then two years prior to the submittal date. This survey shall include the species, DBH size, condition, location of all trees over ten inches in diameter and any damaged or diseased trees on site. All significant special, damaged or diseased trees shall be tagged and identified by number Tree Diversity Standards and Inventory Expiration March2,2021 Page 4 ALTERNATIVES 1) No action. Tree Diversity Standards and Inventory Expiration March2,202l Page 5 on the survey. A delineation of the existing canopy coverage area(s) which outlines all aleas covered by ree canopy shall be included as part of the survey. Additionally, all damaged and diseased trees shall be cataloged with the nanue and extent ofany damage or disease specified. a, Based on this survey and either site observation and measurement or a current aerial photograph (taken within one year ofthe date ofplan submittal) interpretation, the following shall be calculated: l. Base line canopy coverage. 2. Minimum canopy coverage requirements. b. The following table shall be used to determine the minimum amount of canopy coverage that must be maintained or provided on-sire as part ofthe development. It shall represent the minimum canopy coverage, consisting of existing tree canopy and/or additional trees required for the site. Existing wetland areas, bluff areas, and dedicated park land located on site shall be excluded from the calculation of site area in the determination of site coverage. If a forested area is to be dedicated to the city for park land, then this area shall not be included in the base line canopy coverage area calculation nor shall it count towards the minimum canopy coverage for the site. Comprehensive Plan Designation Medium Density Residential Low Density Residential Base line canopy coverage is the canopy coverage existing at the time the development application is filed with the city. Minimum canopy coverage is determined by using the matrix. Priority shall be given to retaining stands of trees and undisturbed wooded lands over individual specimen trees that will be incorporated into the development. No C 4o-59o/o 20-39%197o or less60-79%80-100% 14%10o/o25%20o/oCommercial/lndustrial/lnstitutional 25%20%15%30o/oHigh Density Residential 35% 25o/o 20%40%3s%30% 46%35%30%25%55% 25%s6%43%Large Lot Residential 68% Base Line Canopy Coverage Per Acre 28% 35% Tree Diversity Standards and Inventory Expiration March2,2021 Page 6 more than ten percent of the canopy retention requirement may be met by an individual tree that is not included within a designated woodland area. d. For developments that do not meet the minimum canopy coverage, the developer shall be required to develop a forestation plan to bring the total canopy coverage up to the minimum requirement. Where existing woodlands are removed or there is a loss of trees that would otherwise be used to meet the canopy coverage retention requirement, the developer shall develop a woodland replacement plan. The replacement plan must designate an area at least one and two-tenths (l '2) times the removed canopy coverage area that shall be planted with replacement trees for those removed. These plans shall locate additional trees either as a continuation of existing stands of trees that are to be preserved or create new stands oftrees in desirable locations such as along roadway corridors, on the north and west perimeters ofthe development, in common open areas, or adjacent to park facilities. e. The following criteria shall be followed in establishing minimum canopy coverage: l. When planting trees, one tree shall be deemed to provide 1,089 square feet of required canopy coverage; 2. Trees must be from the approved list ofdesirable species (preference given for trees designated as native); 3. No more than ten percent ofthe trees may be from any one tree species, no more than 20 percent ofthe trees may be from any one genus, and no more than 30 percent oftrees from any one family; 4. Over-story trees shall be at least 2%-inch caliper and understory trees shall be a minimum of I %-inch caliper; 5. Conifer trees shall be a minimum of six feet in height; 6. Plant materials used for the reforestation shall be of a similar species as vegetation found on-site; 7. Trees shall be used that are appropriate to the soil conditions found on site; 8. Trees shall be from certified nursery stock as defined and controlled by M.S' $$ I 8.,14 through I 8.61 , the Plant Pest Act; and Sec. 20-1183. - Landscaping materials. (a) The landscaping materials shall consist ofthe following: (l) Ilalls and fences. Walls shall be constructed of natual stone, brick or other appropriate materials. Fences shall be constructed of wood. Chain link fencing will be permitted only ifcovered with plant material or otherwise screened. (2) Earth Derzs. Earth berms shall be physical barriers which block or screen the view similar to a hedge, fence or wall. Mounds shall be constnrcted with proper and adequate plant material to prevent erosion. A difference in elevation between areas requiring Tree Diversity Standards and Inventory Expiration March2,202l Page 7 screening does not constitute an existing earth mound, and shall not be considered as fulfilling any screening requirement. (3) Plants. All plant materials shall be living plants; artificial plants are prohibited. Plant materials shall meet the following requirements: a. Deciduous trees. Shall be species having an average crown spread of greater than l5 feet and having trunk(s) which can be maintained with over five feet of clear wood in areas which have visibility requirements, except at vehicular use area intersections where an eight-foot clear wood requirement will control. Trees having an average mature spread of crown less than 15 feet may be substituted by grouping ofthe same so as to create the equivalent ofa lS-foot crown spread- A minimum of ten feet overall height or minimum caliper (trunk diameter, measwed six inches above ground for fiees up to four inches caliper) ofat least two and one- half inches immediately after planting shall be required. Trees of species whose roots are known to cause damage to public roadways or other public works shall not be placed closer than l5 feet to such public works, unless the tree root system is completely contained within a barrier for which the minimum interior conuining dimensions shall be five feet square and five feet deep and for which the construction requirements shall be four inches thick, reinforced concrete' b. Evergteen trees. Evergreen trees shall be a minimum of six feet high with a minimum caliper ofone and one-half inches when planted when counted as an understory tree. Over-story evergreens shall be a minimum of eight feet high' c. Tree Divenir!. No more than ten percent of the trees may be from rny one tree species, no more than 20 percent of the trees may be from any one genus, and no more than 30 percent of trees from any one family. d. Shrubs and hedges. Deciduous shrubs shall be at least two feet in average height when planted, and shall conform to the opacity and other requirements within four years after planting. Evergreen shrubs shall be at least two feet in average height and two feet in diameter. e. Vines. Vines shall be at least 12 inches high at planting, and are generally used in conjunction with walls or fences. f. Grass or ground cover. Grass shall be planted in species normally grown as pennanent lawns, and may be sodded, plugged, sprigged, or seeded; except in swales or other areas subject to erosion, where solid sod, erosion reducing net, or suitable mulch shall be used, nurse-grass seed shall be sown for immediate protection until complete coverage otherwise is achieved. Grass sod shall be clean and free of weeds and noxious pests or diseases. Ground cover such as organic material shall be planted in such a manner as to present a finished appearance and 75 percent of complete coverage after two complete growing seasons, with a maximum of 15 inches on center. In certain cases, gtound cover also may consist of rocks, pebbles, sand and similar materials if approved by the city. glplan\city codeuo2l \2021-O I t ee irryentory and diversiry shndards\issue paper_Eee inventory 8nd develsity srandards-docx PLANNING COMMISSION STAFF REPORT Tuesday, March 2, 2021 Subject Approve Amending City Code Concerning Reconciling Intent Statements and Uses for Residential Low and Medium Density (RLM), Mixed Medium Density (R­8) and High Density Residential (R­12) Zoning Districts Section PUBLIC HEARINGS Item No: B.2. Prepared By MacKenzie Young­Walters, Associate Planner File No:  PROPOSED MOTION: The Chanhassen Planning Commission recommends that the City Council adopt the proposed ordinance amending Chapter 20 concerning the RLM, R­8, and R­12 districts. SUMMARY OF REQUEST Every zoning district is prefaced by an intent statement that outlines the purpose of the district. In residential districts, this statement typically lists permitted types of housing and intended density. The subsequent list of uses and lot requirements should be consistent with the initial intent statement. In both the R­8 and R­12 districts, the intent statements do not match the list of permitted uses. In the R­8 district, the intent statement lists detached single­family homes but this style of housing is not listed as a permitted residential use. In the R­12 district, twin homes are listed as a permitted use but are not mentioned in the intent statement. Staff examined the typical lot sizes associated with single­family homes and twin homes and determined that neither type of housing would facilitate the minimum density required for the respective zoning district. For this reason staff is proposing reconciling the discrepancy by removing single­family housing from the R­8 intent statement and removing twin homes and their associated lot standards from the R­12 district’s list of permitted uses. Regarding the RLM district, its intent statement’s clause that the district’s maximum density is eight units per acre can create confusion when developers attempt to apply the district to land guided low density residential, which the Comprehensive Plan limits to a maximum density of four units per acre. Amending the intent statement to only reference the applicable land use categories would clarify that the district’s densities are expected to fall within those proscribed by the city’s land use plan. A full analysis can be found in the attached staff report. APPLICATION REGULATIONS Chapter 1, Section 1­2, Rules of construction and definitions: defines single­family dwelling as a detached building PLANNING COMMISSION STAFFREPORTTuesday, March 2, 2021SubjectApprove Amending City Code Concerning Reconciling Intent Statements and Uses forResidential Low and Medium Density (RLM), Mixed Medium Density (R­8) and High DensityResidential (R­12) Zoning DistrictsSectionPUBLIC HEARINGS Item No: B.2.Prepared By MacKenzie Young­Walters, AssociatePlanner File No: PROPOSED MOTION:The Chanhassen Planning Commission recommends that the City Council adopt the proposed ordinance amendingChapter 20 concerning the RLM, R­8, and R­12 districts.SUMMARY OF REQUESTEvery zoning district is prefaced by an intent statement that outlines the purpose of the district. In residential districts, thisstatement typically lists permitted types of housing and intended density. The subsequent list of uses and lot requirementsshould be consistent with the initial intent statement. In both the R­8 and R­12 districts, the intent statements do not matchthe list of permitted uses. In the R­8 district, the intent statement lists detached single­family homes but this style of housingis not listed as a permitted residential use. In the R­12 district, twin homes are listed as a permitted use but are notmentioned in the intent statement.Staff examined the typical lot sizes associated with single­family homes and twin homes and determined that neither type ofhousing would facilitate the minimum density required for the respective zoning district. For this reason staff is proposingreconciling the discrepancy by removing single­family housing from the R­8 intent statement and removing twin homes andtheir associated lot standards from the R­12 district’s list of permitted uses.Regarding the RLM district, its intent statement’s clause that the district’s maximum density is eight units per acre can createconfusion when developers attempt to apply the district to land guided low density residential, which the ComprehensivePlan limits to a maximum density of four units per acre. Amending the intent statement to only reference the applicable landuse categories would clarify that the district’s densities are expected to fall within those proscribed by the city’s land useplan.A full analysis can be found in the attached staff report.APPLICATION REGULATIONS Chapter 1, Section 1­2, Rules of construction and definitions: defines single­family dwelling as a detached building containing one dwelling unit, two­family dwelling as a detached building containing two dwelling units and notes that it is low density, town house dwellings as a row of at least three single­family attached dwellings where no unit is located over another unit, and multi­family dwelling as a detached building containing three or more dwelling units. Chapter 20, Article XIV, Division 1. “RLM” Residential Low and Medium Density District: lists the intended uses, permitted uses, and standards for the RLM district. Chapter 20, Article XIV, Division 2. “R­8” Mixed Medium Density Residential District: lists the intended uses, permitted uses, and standards for the R­8 district. Chapter 20, Article XV, Division 1. “R­12” High Density Residential District: lists the intended uses, permitted uses, and standards for the R­12 district. RECOMMENDATION Staff recommends that the City Code be amended to remove the mention of detached single­family residential developments from the R­8 district’s intent statement, remove twin homes and their associated standards from the R­12 district’s list of permitted uses, and clarify the RLM district’s intent statement. ATTACHMENTS: Staff Report TO CITY OT CIIAI'IHASSXN Planning Commission FROM: MacKenzieYoung-Walters,AssociatePlanner DATE: March2,2021 SUBJ:Reconcile Residential Low and Medium Density District (RLM), Mixed Medium Density District (R-8) and High Density Residential District (R-12) Intent and Uses PROPOSED MOTION: "The Chanhassen Planning Commission recommends that the City Council adopt the proposed ordinance amending Chapter 20 conceming the RLM, R-8, and R-12 districts." ISSUES The intent statement for the city's R-8 district lists providing single-family detached housing as a function of the district, but single-family detached housing is not listed as a permitted use. Similarly, the city's R-12 district lists two-family dwellings as a permitted use, but its intent statement only lists townhomes and multifamily residential structures. These discrepancies should be reconciled. Additionally, the intent statement for the city's RLM district states the maximum density is eight units per acre; however, the district is intended to be used on land guided for either low or medium density, and the stated density would only be permitted on land guided medium density. Every zoning district is prefaced by an intent statement that outlines the purpose of the district. ln residential districts, this statement typically lists permitted types of housing and intended density. The subsequent list ofuses and lot requirements should be consistent with the initial intent statement. In both the R-8 and R-l2 districts, the intent statements do not match the list of permitted uses. In the R-8 district, the intent statement lists detached single-family homes but this style of housing is not listed as a permitted residential use. In the R-l2 district, twin homes are listed as a permitted use but are not mentioned in the intent statement. Stafl examined the typical lot sizes associated with single-family homes and twin homes and determined that neither t1,pe of housing would facilitate the minimum density required for the respective zoning district. For this reason stalf is proposing reconciling the discrepancy by removing single-family housing from the R-8 intent statement and removing twin homes and their associated lot standards from the R-12 district's list of permitted uses. PH 952.227.1100. www.ci.chanhassen.mn.us. FX 952.227.1110 I/OO I1ARKET BOULEVARD .PO BOX ]4T.CHANHASSEN .MINNESOTA 55317 Chanhassen is a Community for Life - Providing for Today and Planning for Tomonow MEMORANDUM SUMMARY RIM, R-8 and R-12 Intent and Uses March2,2021 Page2 Regarding the RLM distric! its intent statement's clause that the district's maximum density is eight units per acre can create confusion whan developers attempt to apply the district to land guided low density residential, which the Comprehensive Plan limits to a maximum density of four units per acre. Amending the intent statement to only reference the applicable land use categories would clarifu that the disrict's densities are expected to fall within those proscribed by the city's land use plan. RELEVANT C Chapter l, Section l-2, Rules ofconstruction and definitions: defines single-family dwelling as a detached building containing one dwelling unit, two-farnily dwelling as a detached building containing two dwelling units and notes that it is low density, town house dwellings as a row ofat least three single-family attached dwellings where no unit is located over another unit, and multi- family dwelling as a detached building containing three or more dwelling units. Chapter 20, Article XIV, Division l. "RLM" Residential Low and Medium Density District: lists the intended uses, permitted uses, and standards for the RLM district. Chapter 20, Article XIV, Division 2. "R-8" Mixed Medium Density Residential District: lists the intended uses, permitted uses, and standards for the R-8 district. Chapter 20, Article XV, Division l. "R-12" High Density Residential District: lists the intended uses, permitted uses, and standards for the R- 1 2 district. AI\IALYSIS When determining what zoning is appropriate for a site, the city looks to the Comprehensive Plan's land use plan. This land use plan guides various parcels for different broad categories ofuses like industrial or residential. Within the residential category parcels are guided for large lot, low density, medium density, and high density uses. Each ofthese uses has a required density range, for example areas guided low density must develop with a density of between 1.2 and four units per acre. The city's Comprehensive Plan liss what zoning districts are permissible for what land use designations and this designation is reinforced by the each districts' opening intent statement which outlines what types of housing it is intended to accommodate. In the case ofthe city's R-8 and R-I2 districts, they are respectively guided for MediurilHigh and High density development. Areas guided medium density must develop at densities of between four and eight units per acre and areas guided high density must develop at densities of between eight and 1 6 units per acre, though the R- 12 district is intended to have a maximum density of 12 units per acre. In order to achieve the required densities, Average Lot Size for Unit Per Acre Low Density 1.2 units per acre 36,300 sq. ft 4 units per acre 10,890 sq. ft. Medium Density 4 units per acre 10,890 sq. ft. 8 units per acre 5,445 sq. ft. High Density 8 units per acre 5,445 sq. ft. 12 units per acre 3,630 sq. ft. 16 units per acre 2,722.3 sq. ft. the average lot size within a development needs to fall within a certain range as shown in the table to the right. To make sure this happens, the city's zoning districts speci! minimum lot sizes that fall within these ranges. Oftentimes, different styles of housing permitted within a district have different RLM, R-8 and R-12 Intent and Uses March2,2027 Page 3 minimum lot sizes that correspond to the lower or upper limit of the density range. For example, the R4 district is intended to be used in areas guided low and/or medium density. To support this, it has a 15,000 square foot minimum lot size for single-family homes which corresponds to 2.9 units per acre (i.e. low density), and a 10,000 square foot minimum per unit lot size for two-family homes which corresponds to 4.35 units per acre (i.e. medium density). In the example above, the R-4 district's intent statement lists single-family detached and attached residential development, it's permitted uses list single-family and two-family dwellings, and its minimum lot sizes facilitate the proscribed densities. However, both the R-8 and R-12 districts have discrepancies between their intent statements, permitted uses, and minimum lot sizes. For the R-8 district, facilitating single-family detached residential development is listed as an intent of the district, but is not listed as a permitted use. This discrepancy could be resolved either by adding single-family dwelling to the list of permitted uses and adopting appropriate standards or by removing it Aom the intent statement. In order to evaluate which approach makes the most sense, staff put together a table listing housing types permitted in the R-4, RLM, R-8, and R-12 districts along with the relevant lot standards. Density Low/Med Low LoVMed Med High Single-Family Lot Area R-4 15,000 PUD.R t Requiren 11,000 RLM ents 9,000 R-g* NA R-12*ffi NA Lot Frontage 80 NA NA Lot Depth t25 100 110 NA NA Lot Cover 30%30%35%NA Two-Family Lot Area 10,000 NA 7 ,260 7 ,500 7,500 Lot Frontage 50 NA 50 50 Lot Depth t25 NA 100 150 155 Lot Cover NA 4O/o 3S%;35% Townhouses NA NA 5,445 5,500 3,600 Lot Frontage NA 30 50*{'150*+ Lot Depth NA NA 100 150 155 Lot Cover NA NA so%35% Multi-Family Lot Area NA 5,445 5,500 3,500 Lot Frontage NA NA 30 50 150 Lot Depth NA 150 155 Lot Cover NA NA 50%35Yo 35% *Note: R-8's intent statement says single-family detached, but does not list it and R-12's intent statement says townhouse and multifamily, but lists two-family dwellings t+Note: With the three unit requirement, R-8 and R-12 have equivalent frontage requirements. Zoning 90 50 NA 50 30% Lot Area NA 35% NA NA 100 RLM, R-8 and R-12 Intent and Uses March2,202l Page 4 To make the minimum density requirement of four units per acre, single-family homes within the R- 8 district would need to have a minimum lot size of 10,890 square feet. Staff is concemed that this lot size would undermine the intent of the RLM district, which allows smaller single-family lot sizes within areas guided lodmedium density in exchange for the dedication of permanent open spaces. It is difficult to see why a developer would pursue RLM zoning if R-8 was amended to allow comparably sized lots without the dedication requirement. Similarly, it would allow R-8 districts to have single-family lot sizes smaller than what is permitted in the PUD-R district for detached single- family homes, without the expectation of a higher quality development which is required of developers requesting PUD-R zoning. Ultimately, the R-8 zone is intended to be a true medium density zone characterized by attached housing, rather than a hybrid loilmedium density zone like the RLM district where either small lot single-family or attached housing is appropriate. In order to maintain the existing distinctions within the City Code and encourage developers looking for higher density single-family options to dedicate land or meet PUD-R standards, staff recommends that the R-8 discrepancy be resolved by removing detached single-family residential developments from the intent statement. This change would also be consistent with the Comprehensive Plan's description ofland guided for medium density as being characterized by duplexes, townhouses, and lower density apartrnents or condominiums. The R-12 district has the opposite problem of the R-8 district. In the R-l2 district, the uses listed in the intent statement correspond to the district's intended function as a high density residential district. The 3,600 square foot minimum lot size for both townhouses and multifamily developments corresponds to a maximum density of 12.1 units per acre, which aligns closely the district's intended 12 unit per acre maximum density; however, the district lists two-family dwellings as a permitted use. Since the district establishes a 7,500 per dwelling unit minimum lot size for twin-homes, this use would equate to a development with a maximum density of 5.8 units per acre, significantly below the eight unit per acre minimum required for land guided as high density residential. Staff believes the best way to clarifr the permitted density within the RLM district is to remove the language referencing the eight unit per acre maximum and have the opening sentence simply note that it is intended to be provided for single-family attached and detached residential development on Given that the Comprehensive Plan states that land guided high density should provide for aparfinents and condominiums, staff believes the discrepancy within the R-12 district should be resolved by removing two-family dwellings and their associated standards from the list of permitted uses. This change would be consistent with the city's intent for areas guided high density residential to provide for multifamily housing. In the RLM district, the listed housing types, permitted uses, and lot sizes all align, but the intent statement references a maximum density of eight units per acre. While that is the correct maximum density when the RLM district is applied to a property guided for medium density residential, the RLM district can also be applied to property guided for low density residential which has a maximum density of four units per acre. Since the RLM's intent statement only references the eight unit per acre maximum, it creates the impression that the RLM zoning always permits development at up to that density, regardless of land use guidance. RLM, R-8 and R-12 Intent and Uses March2,202l Page 5 land guided residentialJow or medium density in the city's Comprehensive Plan. In all cases, the density limits specified by the Comprehensive Plan take precedence and this change would be a clarification of rather than a change to the city's existing policy. l) Amend the City Code to remove the mention of detached single-family residential developments from the R-8 district's intent statement, remove twin homes and their associated standards from the R-l2 district's list of permitted uses, and clariff the RLM district's intent statement. 2) Amend the City Code to add single-family home and their associated standards to the R-8 district and add twin homes to the R-l2 district's intent statement and clarifi the RLM district's intent statement. Staff recommends Altemative I which will establish uses for the zoning districts that align with their minimum required densities and clarifi the language within the intent statements. The proposed amendments would read as follows: DIVISION I. - -RLM'RESIDENTI-AL LOW AND MEDIUM DENSITY DISTRICT Sec.20-641. - Intent. The intent of the "RLM" District is to provide for single-family attached or detached residential development on land guided residentialJow or medium density in the city's comprehensive plan wfth . The "RLM" District is intended to be used where large areas of upland will be preserved or created as permanent open space to balance the higher lot coverage permitted on individual lots. DMSION 2. - "R-8'MIXED MEDIUM DENSITY RESIDENTIAL DISTRICT Sec. 20-651. - Intent. The intent of the "R-8" District is to provide for single-family Cetaehe4er attached and multifamily residential development at a maximum net density of eight dwelling units per acre. DTVISION l. - "R-12. DISTRICT Sec.20-671. - Intent. The intent ofthe "R-12" District is to provide for townhouses and multifamily residential structures at a maximum density of 12 dwelling units per acre. (Ord. No. 80, Art. V, $ 8(5-8-1), l2-15-86) Sec.20-672. - Permitted uses. The following uses are permitted in an "R-12" District: (1) Townhouseq-sre-familydrrellingB and multifamily dwellings. ALTERNATIYES RECOMMENDATION RLM, R-8 and R-I2 Intent and Uses March2,2021 Page 6 (2) Public and private parks and open space. (3) Utility services. (4) Antennas as regulated by article X)O( of this chapter. (5) Adult day care, subject to the requirements of section 20-966. (6) Continuing care retirement facility, subject to the requirements of section 20-965. Sec. 20-675. - Lot requirements and setbacks. The following minimum requirements shall be observed in an "R-12" District subject to additional requirements, exceptions and modifications set forth in this chapter: (l) The minimum lot area is as follows: it. a. For a townhouse or multifamily dwelling, 3,600 square feet per dwelling unit. (2) The minimum lot frontage is as follows: in€' a. If a townhouse or multiple-family project is located on the lot, 150 feet. (3) The minimum lot depth is 155 feet. (4) The maximum lot coverage is 35 percent. (5) The setbacks are as follows; a. For front yards,25 feet. b. For rear yards, 25 feet. c. For side yards, ten feet. (6) The maximum height is as follows: a. For the principal structure, three storieV35 feet. b. For accessory structures, one story/I5 feet. sr\plra\.ity c.d.Uo2l U02 | -02 i cnt $rtcmcnls - d[| r-8 ad r-l2\is.srlc paF - rtm rt rl2 intctn.do.x PLANNING COMMISSION STAFF REPORT Tuesday, March 2, 2021 Subject Approve Amending City Code Concerning Increasing the Final Plat and Metes and Bounds Subdivision Recording Timeline to 120 Days Section PUBLIC HEARINGS Item No: B.3. Prepared By MacKenzie Young­Walters, Associate Planner File No:  PROPOSED MOTION: “The Chanhassen Planning Commission recommends that the City Council adopt the proposed ordinance amending Chapter 18 concerning plat recording.” SUMMARY OF REQUEST The current language in the Subdivision Ordinance mandates that final plats and metes and bounds subdivisions be recorded with the County Recorder Office within 30 days after receiving City Council approval. Failure of the applicant to comply with this timeline is listed as cause for revoking the City's approval. Often, multiple issues arise that are beyond the control of the applicant, property owner or City, and these issues make meeting the 30­day deadline impossible. In practice, the City does not act to revoke the approval when these issues arrive, due to the understanding that extenuating circumstances happen. That being said, a timeline is required in order to prevent developers from deliberately delaying recording an approved subdivision to artificially maintain a lower property tax valuation. Staff proposes to balance these considerations by extending the timeline to record a plat from 30 days to 120 days, which would make it consistent with the recording timelines established for other recorded documents under the City Code. Failure to meet that deadline would void the approval unless a request for time extension is submitted in writing and approved by the City Council.   A full discussion of the proposed amendment can be found in the attached issue paper. APPLICATION REGULATIONS Sec. 18­37(c) – This section establishes a 30­day timeline for recording metes and bounds subdivisions. Sec. 18­41(e) – This section establishes a 30­day timeline for recording final plats. Sec. 20­30 – This section establishes a 120­day timeline for recording variances, conditional use permits, interim use permits, site plans, wetland alteration permits, and mining permits. It also allows the City Council to approve extensions to the 120­day timeline. PLANNING COMMISSION STAFFREPORTTuesday, March 2, 2021SubjectApprove Amending City Code Concerning Increasing the Final Plat and Metes and BoundsSubdivision Recording Timeline to 120 DaysSectionPUBLIC HEARINGS Item No: B.3.Prepared By MacKenzie Young­Walters, AssociatePlanner File No: PROPOSED MOTION:“The Chanhassen Planning Commission recommends that the City Council adopt the proposed ordinance amendingChapter 18 concerning plat recording.”SUMMARY OF REQUESTThe current language in the Subdivision Ordinance mandates that final plats and metes and bounds subdivisions berecorded with the County Recorder Office within 30 days after receiving City Council approval. Failure of the applicant tocomply with this timeline is listed as cause for revoking the City's approval. Often, multiple issues arise that are beyondthe control of the applicant, property owner or City, and these issues make meeting the 30­day deadline impossible. Inpractice, the City does not act to revoke the approval when these issues arrive, due to the understanding thatextenuating circumstances happen. That being said, a timeline is required in order to prevent developers fromdeliberately delaying recording an approved subdivision to artificially maintain a lower property tax valuation.Staff proposes to balance these considerations by extending the timeline to record a plat from 30 days to 120 days,which would make it consistent with the recording timelines established for other recorded documents under the CityCode. Failure to meet that deadline would void the approval unless a request for time extension is submitted in writingand approved by the City Council.  A full discussion of the proposed amendment can be found in the attached issue paper.APPLICATION REGULATIONSSec. 18­37(c) – This section establishes a 30­day timeline for recording metes and bounds subdivisions.Sec. 18­41(e) – This section establishes a 30­day timeline for recording final plats.Sec. 20­30 – This section establishes a 120­day timeline for recording variances, conditional use permits, interim use permits, site plans, wetland alteration permits, and mining permits. It also allows the City Council to approve extensions to the 120­day timeline. BACKGROUND Staff presented this item to the City Council during their August 24, 2020 work session and was instructed to bring it before the Planning Commission for a public hearing. RECOMMENDATION Staff recommends that the City Code be amended to change the final plat and metes and bounds subdivision recording timeline from 30 to 120 days, and to clarify that extensions must be approved by the City Council. ATTACHMENTS: Staff Report CITY OT CIIANHASSXN Chanhassen is a Community for Life - Providing for Today and Planning for Tomonow MEMORANDUM TO Planning Commission MacKenzie Young-Walters, Associate Planner March2,202l Plat Recording Timeline FROM: DATE: SUBJ: PROPOSED MOTION: "The Chanhassen Planning Commission recommends that the City Council adopt the proposed ordinance amending Chapters 18 conceming plat recording." ISSUE The city's subdivision ordinance requires that final plats and metes and bounds subdivisions be recorded within 30 days ofapproval; however, due to circumstances beyond the applicant's control this is not always possible. The current language in the Subdivision Ordinance mandates that final plats and metes and bounds subdivisions be recorded with the Comty Recorder Office within 30 days after receiving City Council approval. Failure of the applicant to comply with this timeline is listed as cause for revoking the city's approval. Often, multiple issues arise that are beyond the control of the applicant, property owner or city, and these issues make meeting the 30{ay deadline impossible. In practice, the city does not act to revoke the approval when these issues arrive, due to the understanding that extenuating circumstances happen. That being said, a timeline is required in order to prevent developers from deliberately delaying recording an approved suMivision to artificially maintain a lower property tax valuation. Staff proposes to balance these considerations by extending the timeline to record a plat from 30 days to 120 days, which would make it consistent with the recording timelines established for other recorded documents under the City Code. Failure to meet that deadline would void the approval unless a request for time extension is submitted in writing and approved by the City Council. I/OO MARKET EOULEVARO . PO BOX ]4T.CHANHASSEN .MINNESOTA 55317 SUMMARY PH 952.227.1100. www.ci.chanhassen.mn.us. FX 952.227.1110 Plat Recording Timeline March2,2021 Page 2 Sec. 18-37(c) - This section establishes a 30-day timeline for recording metes and bounds suMivisions. Sec. l84l(e) - This section establishes a 30-day timeline for recording final plats. Sec. 20-30 - This section establishes a 120-day timeline for recording variances, conditional use permits, interim use permits, site plans, wetland alteration permits, and mining permits. It also allows the City Council to approve extensions to the 120day timeline. ANALYSI Many items approved by the City Council and Planning Commission need to be recorded with the county. Examples of these documents are variances, conditional and interim use permits, site plans, wetland alteration permits, mining permits, and plats. All of these items alter how a piece of property can be used or, in the case ofplats, create new parcels. In order to ensure that projects move forward in a timely manner and that time sensitive conditions of approval can be met, the city requires that most of these items be recorded within 120 days ofbeing approved; however, suMivision approvals, i.e. final plats and metes and bounds, are subject to a 30-day timeline. The rationale behind a shorter timeline for suMivision approvals is that dividing one parcel into multiple parcels can have sigrrificant property tax implications. Typically the total values of the divided lots is higher than the value of the original undivided lot. ffis can create an incentive for develop€rs to delay recording until the last possible moment in order to minimize their property taxes. Since it is in the city's interest to ensure that property is taxed at its actual value and that subdivisions with their associated infrastructure and public improvements move forward in a timely manner, a 30day timeline was established. While the rationale behind wanting to require prompt filing makes sense, experience has shown that there are often circumstances that arise beyond anyone's control that render the 30-day timeline untenable. Many different entities are involved in the recording process including the city, the city's attomey, the applicant's attomey, county recorder, banks, and, in some instances, neighbhoring property owners. Any ofthese organizations can discover issues that delay the recording ofa plat. For example, a bank or title company may express concem over issues with documentation from a previous mortgage recorded against the property. In some cases, individuals have passed during the subdivision process and delays associated with probates oftice have created difficulties. Any ofthese or other unforeseen complications can cause significant delays and prevent the applicant from meeting the 30-day requirement. In practice, the city does not typically choose to revoke approval after the 30-day period passes; however, the City Code does not establish a process for extending the deadline. Given the frequency with which applicant's exceed the 30-day period, staff believes it would make sense to extend the deadline to 120 days and allow for the applicant to request an extension from the City RELEVANT CITY CODE Plat Recording Timeline March2,2021 Page 3 Council in cases where the 120-day period is untenable. This timeline and extension policy would be consistent with how other approvals are treated, and would still accomplish the city's goal of ensuring the prompt recording of approved suMivisions. ALTERNATIVES I ) No action. The city can choose not to revoke the approval in cases where there is good reason for the delay, and the 30-day rule encourages a prompt filing. 2) Amend the City Code to allow applicants 120 days to record and allow for applicants to request an extension in extenuating circumstances. Staff recommends Alternative 2 which will establish the same timeline and extension procedures for all recorded documents. The proposed amendments would read as follows: Sec. 18-37. - Exemption. (c) Upon approval ofan administrative or metes and bounds subdivision, the city shall notifr the applicant of the approval and within 30 120 days thereafter the applicant or the city attomey shall file the documents with the county recorder and fumish the city evidence of such recording. Failure to comply shall be cause for revoking the city's approval, unless a request for an extension is submitted in writing and approved by the City Council, Sec. 18-41. - Final plat-Generally. (e) Upon approval of the final plat by the city council, the city shall notiff the applicant of the approval and within 30 120 days thereafter, the applicant or the city attomey shall file the final plat with the county recorder and fumish the city evidence of such recording. Failure of the applicant to comply shall be cause for revoking the city's approval, unless a request for an extension is submitted in writing and approved by the City Council g:Vlan\ciry c.deUo2l U02l {3 6nal plat recording timeline\issue paperlrlat rccording.docx RECOMMENDATION PLANNING COMMISSION STAFF REPORT Tuesday, March 2, 2021 Subject Adopt a Resolution Affirming that the TIF District for the Lakes at Chanhassen Development is Consistent with the City's Comprehensive Plan Section NEW BUSINESS Item No: C.1. Prepared By Kate Aanenson, Community Development Director File No:  PROPOSED MOTION: "The Chanhassen Planning Commission Adopts a Resolution affirming that the TIF District for the Lakes at Chanhassen Development is consistent with the City's Comprehensive Plan." SUMMARY OF REQUEST Adopt the attached resolution confirming the General Plans for the Development and Redevelopment at 1361 Lake Drive West being developed by Lakes at Chanhassen, LLC for a three­story, 110­unit, mixed­income apartment facility for senior living. While the TIF district modification is attached, the Planning Commission is not being asked to approve whether the housing merits public assistance, but instead is confirming for the City Council that the TIF project is not somehow circumventing land use regulations. If approved, the Planning Commission’s resolution will be used by the City Council as one of its statutory findings that the proposed housing development being assisted with TIF “conforms with the general plans for development of the City.” ATTACHMENTS: Resolution Modification to the Redevelopment Plan and TIF Plan Report PLANNING COMMISSION CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA DATE: March 2, 2021 RESOLUTION NO: 2021-01 MOTION BY: SECONDED BY: RESOLUTION FINDING THAT TAX INCREMENT FINANCING DISTRICT NO. 12 CONFORMS TO THE GENERAL PLANS FOR THE DEVELOPMENT AND REDEVELOPMENT OF THE CITY WHEREAS, property at 1361 Lake Drive West identified as parcel number 25.6360020 within the City of Chanhassen (the “City”) is proposed to be developed by Lakes at Chanhassen, LLC, a Minnesota Limited Liability Company, into a three-story, 110-unit, mixed-income apartment facility for senior living (the “Project”); and WHEREAS, upon recommendation from the Chanhassen Planning Commission (the “Commission”) the City Council approved the Site Plan and Variance for the Project on January 25, 2021; and WHEREAS, the Chanhassen Economic Development Authority (the “EDA”) and the City anticipate tax increment financing as necessary to bridge a financial gap that otherwise renders the Project infeasible; and WHEREAS, the EDA and the City have proposed to adopt a Modification to the Redevelopment Plan for the Downtown Chanhassen Redevelopment Project Area (the "Redevelopment Plan Modification") and a Tax Increment Financing Plan for Tax Increment Financing District No. 12 (the "TIF Plan") therefore (the Redevelopment Plan Modification and the TIF Plan are referred to collectively herein as the "Plans") and have submitted the Plans to the Commission pursuant to Minnesota Statutes, Section 469.175, Subd. 3; and WHEREAS, the Project described as the subject of the Plans is the same as that approved by the City Council on January 25, 2021; and WHEREAS, the Commission has reviewed the Plans to determine their conformity with the general plans and guided land use as described in the Comprehensive Plan for the City. NOW, THEREFORE, BE IT RESOLVED by the Commission that the Plans conform to the general plans for the development and redevelopment of the City as a whole. Passed and adopted by the Chanhassen Planning Commission this 2nd day of March, 2021. ATTEST: _______________________________________ Steven Weick, Chairman Mark Randall, Vice-Chairman YES NO ABSENT g:\novusagenda \pc\2021\03-02-2021\res_tif 12 planning commission review revsed developer name.docx     MODIFICATION TO THE REDEVELOPMENT PLAN Downtown Chanhassen Redevelopment Project Area - AND - TAX INCREMENT FINANCING PLAN Establishment of Tax Increment Financing District No. 12 (a housing district) City of Chanhassen, Carver County, Minnesota Public Hearing: March 22, 2021   City of Chanhassen Tax Increment Financing District No. 12 2  Table of Contents Modification to the Redevelopment Plan for the Downtown Chanhassen Redevelopment Project Area .............................................................................................................................................. 3  Foreword ................................................................................................................................... 3  Tax Increment Financing Plan for Tax Increment Financing District No. 12 ................................. 4  Foreword ................................................................................................................................... 4  Statutory Authority .................................................................................................................... 4  Statement of Objectives ............................................................................................................ 4  Redevelopment Plan Overview ................................................................................................. 4  Description of Property in the District and Property to be Acquired .......................................... 5  Classification of the District ....................................................................................................... 5  Duration and First Year of Tax Increment of the District ........................................................... 6  Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity Value/Increment and Notification of Prior Planned Improvements ....................................................................... 6  Sources of Revenue/Bonds to be Issued .................................................................................. 7  Uses of Funds ........................................................................................................................... 8  Estimated Impact on Other Taxing Jurisdictions ....................................................................... 8  Supporting Documentation ..................................................................................................... 10   Administration of the District ................................................................................................... 11  Appendix A: Map of Downtown Chanhassen Redevelopment Project Area and the TIF District ..................................................................................................................................... 12  Appendix B: Estimated Cash Flow for the District .................................................................. 13  Appendix C: Findings Including But/For Qualifications .......................................................... 14    City of Chanhassen Tax Increment Financing District No. 12 3  Modification to the Redevelopment Plan for the Downtown Chanhassen Redevelopment Project Area Foreword The following text represents a Modification to the Redevelopment Plan for the Downtown Chanhassen Redevelopment Project Area. This modification represents a continuation of the goals and objectives set forth in the Redevelopment Plan for the Downtown Chanhassen Redevelopment Project Area. Generally, the substantive changes include the establishment of Tax Increment Financing District No. 12. For further information, a review of the Redevelopment Plan for the Downtown Chanhassen Redevelopment Project Area is recommended. It is available on file at the office of the Assistant City Manager at the City of Chanhassen. Other relevant information is contained in the Tax Increment Financing Plans for the Tax Increment Financing Districts located within Downtown Chanhassen Redevelopment Project Area.   City of Chanhassen Tax Increment Financing District No. 12 4  Tax Increment Financing Plan for Tax Increment Financing District No. 12 Foreword The City of Chanhassen (the "City"), staff and consultants have prepared the following information to expedite the Establishment of Tax Increment Financing District No. 12 (the "District"), a housing tax increment financing district, located in the Downtown Chanhassen Redevelopment Project Area (the “Project Area”). Statutory Authority Within the City, there exist areas where public involvement is necessary to cause development or redevelopment to occur. To this end, the City has certain statutory powers pursuant to Minnesota Statutes ("M.S."), Sections 469.124 - 469.133, inclusive, as amended, and M.S., Sections 469.174 to 469.1794, inclusive, as amended (the "Tax Increment Financing Act" or "TIF Act"), to assist in financing public costs related to this project. This section contains the Tax Increment Financing Plan (the "TIF Plan") for the District. Other relevant information is contained in the Redevelopment Plan for the Project Area, as modified. Statement of Objectives The District currently consists of one (1) parcel of land and adjacent roads and internal rights-of- way. The District is being created to provide financial assistance to facilitate the development of a new 110-unit, three story mixed-income apartment facility for senior living to be known as Lake Place in the City. The City is preparing to enter into an agreement with TPS Holding LLC as the developer. Development is anticipated to begin in 2021. This TIF Plan is expected to achieve many of the objectives outlined in the Redevelopment Plan for the Project Area. The activities contemplated in the Modification to the Redevelopment Plan and the TIF Plan do not preclude the undertaking of other qualified development or redevelopment activities. These activities are anticipated to occur over the life of the Project Area and the District. Redevelopment Plan Overview Pursuant to the Redevelopment Plan and authorizing state statutes, the City is authorized to undertake the following activities in the District: 1. Property to be Acquired – If deemed necessary, selected property located within the District may be acquired by the City and is further described in this TIF Plan. 2. Relocation - Relocation services, to the extent required by law, are available pursuant to M.S., Chapter 117 and other relevant state and federal laws.   City of Chanhassen Tax Increment Financing District No. 12 5  3. Upon approval of a developer's plan relating to the project and completion of the necessary legal requirements, the City may sell to a developer selected properties that it may acquire within the District or may lease land or facilities to a developer. 4. The City may perform or provide for some or all necessary acquisition, construction, relocation, demolition, and required utilities and public street work within the District. Description of Property in the District and Property to be Acquired The District encompasses all property and adjacent rights-of-way and abutting roadways identified by the parcels listed below. Parcel number Address Owner 25.636.0020 1361 Lake Drive W. Island Mgmt LLC Please also see the map in Appendix A for further information on the location of the District. The City may acquire any parcel within the District including interior and adjacent street rights of way. Any properties identified for acquisition will be acquired by the City only in order to accomplish one or more of the following: storm sewer improvements; provide land for needed public streets, utilities and facilities; or carry out land acquisition, site improvements, clearance and/or development to accomplish the uses and objectives set forth in this plan. The City may acquire property by gift, dedication, condemnation or direct purchase from willing sellers in order to achieve the objectives of this TIF Plan. Such acquisitions will be undertaken only when there is assurance of funding to finance the acquisition and related costs. Classification of the District The City, in determining the need to create a tax increment financing district in accordance with M.S., Sections 469.174 to 469.1794, as amended, inclusive, finds that the District, to be established, is a housing district pursuant to M.S., Section 469.174, Subd. 11 and M.S., Section 469.1761. $ The District consists of one (1) parcel $ The development will consist of 110 units of multi-family rental housing $ At least 40% of the units will be occupied by persons with incomes less than 60% of median income, and $ No more that 20 percent of the square footage of the building that is receiving assistance from tax increment consists of commercial, retail or other non-residential uses. Pursuant to M.S., Section 469.176, Subd. 7, the District does not contain any parcel or part of a parcel that qualified under the provisions of M.S., Sections 273.111, 273.112, or 273.114 or Chapter 473H for taxes payable in any of the five calendar years before the filing of the request for certification of the District.   City of Chanhassen Tax Increment Financing District No. 12 6  Duration and First Year of Tax Increment of the District Pursuant to M.S., Section 469.175, Subd. 1, and Section 469.176, Subd. 1, the duration and first year of tax increment of the District must be indicated within the TIF Plan. Pursuant to M.S., Section 469.176, Subd. 1b., the maximum duration of the District will be 25 years after receipt of the first increment by the City (a total of 26 years of tax increment). The City elects to receive the first tax increment in 2023, which is no later than four years following the year of approval of the District. Thus, it is estimated that the District, including any modifications of the TIF Plan for subsequent phases or other changes, would terminate after 2048, or when the TIF Plan is satisfied. The City reserves the right to decertify the District prior to the legally required date. Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity Value/Increment and Notification of Prior Planned Improvements Pursuant to M.S., Section 469.174, Subd. 7 and M.S., Section 469.177, Subd. 1, the Original Net Tax Capacity (ONTC) as certified for the District will be based on the market values placed on the property by the assessor in 2020 for taxes payable 2021. Pursuant to M.S., Section 469.177, Subds. 1 and 2, the County Auditor shall certify in each year (beginning in the payment year 2023) the amount by which the original value has increased or decreased as a result of: 1. Change in tax exempt status of property; 2. Reduction or enlargement of the geographic boundaries of the District; 3. Change due to adjustments, negotiated or court-ordered abatements; 4. Change in the use of the property and classification; 5. Change in state law governing class rates; or 6. Change in previously issued building permits. In any year in which the current Net Tax Capacity (NTC) value of the District declines below the ONTC, no value will be captured and no tax increment will be payable to the City. Pursuant to M.S., Section 469.174 Subd. 4 and M.S., Section 469.177, Subd. 1, 2, and 4, the estimated Captured Net Tax Capacity (CTC) of the District, within Downtown Chanhassen Redevelopment Project Area, upon completion of the projects within the District, will annually approximate tax increment revenues as shown in the table below. The City requests 100 percent of the available increase in tax capacity for repayment of its obligations and current expenditures, beginning in the tax year payable 2023. The Project Tax Capacity (PTC) listed is an estimate of values when the projects within the District are completed. The original local tax rate for the District will be the local tax rate for taxes payable 2021, assuming the request for certification is made before June 30, 2021. The ONTC and the Original Local Tax Rate for the District appear in the table below.   City of Chanhassen Tax Increment Financing District No. 12 7  Estimated Project Tax Capacity (PTC) upon completion 233,750 Estimated Original Net Tax Capacity (ONTC) 9,195 Fiscal Disparities 0 Estimated Captured Tax Capacity (CTC)224,555 Original Local Tax Rate 95.1546%Pay 2021 Estimated Annual Tax Increment $213,674 Percent Retained by the City 100% Project Tax Capacity Note: The tax capacity included in this chart is the estimated tax capacity of the District in year 25. The tax capacity of the District based on partial project completion in year one is estimated to be $58,438. Pursuant to M.S., Section 469.177, Subd. 4, the City shall, after a due and diligent search, accompany its request for certification to the County Auditor or its notice of the District enlargement pursuant to M.S., Section 469.175, Subd. 4, with a listing of all properties within the District or area of enlargement for which building permits have been issued during the eighteen (18) months immediately preceding approval of the TIF Plan by the municipality pursuant to M.S., Section 469.175, Subd. 3. The County Auditor shall increase the original net tax capacity of the District by the net tax capacity of improvements for which a building permit was issued. The City is reviewing the area to be included in the District to determine if any building permits have been issued during the 18 months immediately preceding approval of the TIF Plan by the City. Sources of Revenue/Bonds to be Issued The total estimated tax increment revenues for the District are shown in the table below: SOURCES Tax Increment 5,369,315$ Interest 268,466 TOTAL 5,637,781$ The costs outlined in the Uses of Funds will be financed primarily through the annual collection of tax increments. If necessary, The City reserves the right to incur bonds or other indebtedness as a result of the TIF Plan. As presently proposed, the projects within the District will be financed by one or more pay-as-you-go notes. Any refunding amounts will be deemed a budgeted cost without a formal TIF Plan Modification. This provision does not obligate the City to incur debt. The City will issue bonds or incur other debt only upon the determination that such action is in the best interest of the City. The City may issue bonds (as defined in the TIF Act) secured in whole or in part with tax increments from the District in a maximum principal amount of $5,013,288. Such bonds may be in the form of pay-as-you-go notes, revenue bonds or notes, general obligation bonds, or interfund loans. This estimate of total bonded indebtedness is a cumulative statement of authority under this TIF Plan as of the date of approval.   City of Chanhassen Tax Increment Financing District No. 12 8  Uses of Funds Currently under consideration for the District is a proposal to facilitate financial assistance for the development of a new 110-unit mixed-income senior housing apartment facility in the city. The City has determined that it will be necessary to provide assistance to the project(s) for certain District costs, as described. The City has studied the feasibility of the development or redevelopment of property in and around the District. To facilitate the establishment and development or redevelopment of the District, this TIF Plan authorizes the use of tax increment financing to pay for the cost of certain eligible expenses. The estimate of public costs and uses of funds associated with the District is outlined in the following table. USES Land/Building Acquisition -$ Site Improvements/Preparation - Affordable Housing 4,476,356 Utilities - Other Qualifying Improvements - Administrative Costs (up to 10%)536,932 PROJECT COSTS TOTAL 5,013,288$ Interest 624,493 PROJECT AND INTEREST COSTS TOTAL 5,637,781$ The total project cost, including financing costs (interest) listed in the table above does not exceed the total projected tax increments for the District as shown in the Sources of Revenue section. Estimated costs associated with the District are subject to change among categories without a modification to this TIF Plan. The cost of all activities to be considered for tax increment financing will not exceed, without formal modification, the budget above pursuant to the applicable statutory requirements. The City may expend funds for qualified housing activities outside of the District boundaries pursuant to the TIF Act. Fiscal Disparities Election Pursuant to M.S., Section 469.177, Subd. 3, the City may elect one of two methods to calculate fiscal disparities. The City will choose to calculate fiscal disparities by clause b (inside). Estimated Impact on Other Taxing Jurisdictions The estimated impact on other taxing jurisdictions below assumes that the redevelopment contemplated by the TIF Plan would occur without the creation of the District. However, the City has determined that such development or redevelopment would not occur "but for" tax increment financing and that, therefore, the fiscal impact on other taxing jurisdictions is $0. The estimated fiscal impact of the District would be as follows if the "but for" test was not met:   City of Chanhassen Tax Increment Financing District No. 12 9  Entity Final 2020/Pay 2021 Total Net Tax Capacity Estimated Captured Tax Capacity (CTC) upon completion Percent of CTC to Entity Total Carver County 159,157,722 224,555 0.1411% Chanhassen 50,969,757 224,555 0.4406% ISD No. 112 (Eastern Carver County Schools)93,580,837 224,555 0.2400% Impact on Tax Base Entity Pay 2021 Extension Rate Percent of Total CTC Potential Taxes Carver County 34.6337% 36.40% 224,555 $ 77,772 Chanhassen 22.1140% 23.24% 224,555 49,658 ISD No. 112 (Eastern Carver County Schools)32.3272% 33.97% 224,555 72,592 Other 6.0797% 6.39% 224,555 13,652 95.1546% 100.00% $ 213,674 Impact on Tax Rates The estimates listed above display the captured tax capacity when all construction is completed. The tax rate used for calculations is the Pay 2021 rate. The total net capacity for the entities listed above are based on Pay 2021 figures. The District is expected to be certified under the Pay 2021 rates. Pursuant to M.S. Section 469.175 Subd. 2(b): (1) Estimate of total tax increment. It is estimated that the total amount of tax increment that will be generated over the life of the District is $5,369,315; (2) Probable impact of the District on city provided services and ability to issue debt. A marginal impact of the District on police protection is expected. With any addition of new residents or businesses, police calls for service will be increased and the City estimates an increase of 50 calls per year. New developments also add an increase in traffic and additional overall demands to the call load. However, the City does not anticipate any material financial impact and does not expect that the proposed development, in and of itself, will necessitate new capital investment in vehicles or facilities. The probable impact of the District on fire protection is not expected to be significant. Typically new buildings generate few calls, if any, and are of superior construction. The City estimates residents within the development may generate 25 calls per year. Similar to police, the City does not expect that the proposed development, in and of   City of Chanhassen Tax Increment Financing District No. 12 10  itself, will create a material financial impact or necessitate new capital investment in vehicles or facilities. The impact of the District on public infrastructure is expected to be minimal. No public roads are necessitated by the development, and it the development is not expected to significantly impact any traffic movements in the area. All on-site infrastructure capital costs will be paid by the development including the installation of a trail and pedestrian access. The City’s current infrastructure for sanitary sewer, storm sewer and water will be able to handle the additional volume generated from the proposed development. Based on the development plans, there are no additional public costs associated with street maintenance, sweeping, plowing, lighting and sidewalks. The development in the District is expected to contribute an estimated $1,094,280 in sanitary sewer (SAC) and water (WAC) connection fees. The probable impact of any District general obligation tax increment bonds on the ability to issue debt for general fund purposes is expected to be minimal. It is not anticipated that there will be any general obligation debt issued in relation to this project, therefore there will be no impact on the City's ability to issue future debt or on the City's debt limit. (3) Estimated amount of tax increment attributable to school district levies. It is estimated that the amount of tax increments over the life of the District that would be attributable to school district levies, assuming the school district's share of the total local tax rate for all taxing jurisdictions remained the same, is $1,824,136; (4) Estimated amount of tax increment attributable to county levies. It is estimated that the amount of tax increments over the life of the District that would be attributable to county levies, assuming the county's share of the total local tax rate for all taxing jurisdictions remained the same, is $1,954,286; (5) Additional information requested by the county or school district. The City is not aware of any standard questions in a county or school district written policy regarding tax increment districts and impact on county or school district services. The county or school district must request additional information pursuant to M.S. Section 469.175 Subd. 2(b) within 15 days after receipt of the tax increment financing plan. No requests for additional information from the county or school district regarding the proposed development for the District have been received. Supporting Documentation Pursuant to M.S. Section 469.175, Subd. 1 (a), clause 7 the TIF Plan must contain identification and description of studies and analyses used to make the determination set forth in M.S. Section 469.175, Subd. 3, clause (b)(2) and the findings are required in the resolution approving the District. In making said determination, reliance has been placed upon (1) written representation made by the developer to such effects, (2) review of the developer’s proforma; and (3) City staff awareness of the feasibility of developing the project site within the District, which is further outlined in the City Council resolution approving the establishment of the TIF District and Appendix C.   City of Chanhassen Tax Increment Financing District No. 12 11  Administration of the District Administration of the District will be handled by the Assistant City Manager.   City of Chanhassen Tax Increment Financing District No. 12 12  Appendix A: Map of Downtown Chanhassen Redevelopment Project Area and the TIF District an Bl v d (CSAH 18) Lyman Blv d (CSAH 18)Powers Blvd (C.R. 17)01Grea t Plai ns BlvdSta t e H w y 5 State H w y 5Galpin Blvd. (C.R. 117)Chanhassen Rd. Hwy. 101Audubon RoadGalpin Blvd (C.R. 15)Z[212Powers Blvd (C.R. 17)Project Area Downtown Chanhassen Redevelopment Project Area City of Chanhassen, Minnesota s 7D[,QFUHPHQW)LQDQFLQJ'LVWULFW1R 'RZQWRZQ5HGHYHORSPHQW3URMHFW$UHD TIF District No. 12 Tax Increment Financing District No. 12   City of Chanhassen Tax Increment Financing District No. 12 13  Appendix B: Estimated Cash Flow for the District 2/16/2021Lake Place Senior Apartments - No InflationCity of Chanhassen, MN 110-unit Senior Multifamily DevelopmentASSUMPTIONS AND RATESDistrictType:HousingDistrict Name/Number: TIF District 12County District #: TBDExempt Class Rate (Exempt) 0.00%First Year Construction or Inflation on Value 2021Commercial Industrial Preferred Class Rate (C/I Pref.)Existing District - Specify No. Years RemainingFirst $150,000 1.50%Inflation Rate - Every Year:0.00%Over $150,000 2.00%Interest Rate:1.00%Commercial Industrial Class Rate (C/I) 2.00%Present Value Date:1-Aug-22Rental Housing Class Rate (Rental) 1.25%First Period Ending 1-Feb-23Affordable Rental Housing Class Rate (Aff. Rental)Tax Year District was Certified:Pay 2021First $174,000 0.75%Cashflow Assumes First Tax Increment For Development: 2023 Over $174,000 0.25%Years of Tax Increment 26 Non-Homestead Residential (Non-H Res. 1 Unit)Assumes Last Year of Tax Increment 2048 First $500,000 1.00%Fiscal Disparities Election [Outside (A), Inside (B), or NA]Inside(B)Over $500,000 1.25%Incremental or Total Fiscal DisparitiesIncrementalHomestead Residential Class Rate (Hmstd. Res.)Fiscal Disparities Contribution Ratio 36.5748% Pay 2020 First $500,000 1.00%Fiscal Disparities Metro-Wide Tax Rate 139.5040% Pay 2021 est. Over $500,000 1.25%Maximum/Frozen Local Tax Rate: 95.155% Pay 2021 est.Agricultural Non-Homestead 1.00%Current Local Tax Rate: (Use lesser of Current or Max.)95.155%Pay 2021 est.State-wide Tax Rate (Comm./Ind. only used for total taxes) 36.0000% Pay 2021 est.Market Value Tax Rate (Used for total taxes) 0.17888% Pay 2021 est.Building Total Percentage Tax Year Property Current Class AfterLand Market Market Of Value Used Original Original Tax Original After ConversionMap ID PID Owner Address Market ValueValueValue for District Market Value Market Value Class Tax Capacity Conversion Orig. Tax Cap.25.636.0020Island Mgmt LLC1361 Lake Drive W.735,600 0 735,600 100% 735,600 Pay 2021 Rental 9,195 Rental 9,195 1735,600 0 735,600 735,600 9,195 9,195Note:1. Base values are for pay 2021 based upon review of County website on 2/2/2021.2. Located in SD # 112 and WS #064. TAG 2506.Area/ PhaseTax Rates BASE VALUE INFORMATION (Original Tax Capacity)Prepared by Ehlers 2/16/2021Lake Place Senior Apartments - No InflationCity of Chanhassen, MN 110-unit Senior Multifamily DevelopmentEstimated Taxable Total Taxable Property Percentage Percentage Percentage Percentage First YearMarket Value Market Value Total Market Tax Project Project Tax Completed Completed Completed Completed Full TaxesArea/PhaseNew UsePer Sq. Ft./UnitPer Sq. Ft./UnitSq. Ft./UnitsValueClassTax CapacityCapacity/Unit2021202220232024Payable1Apartments 170,000 170,000 110 18,700,000 Rental 233,750 2,125 25%100% 100% 100% 2024TOTAL18,700,000 233,750 Note:1. Market values are based upon estimates provided by the Carver County Assessor's office on 2/12/2021.TotalFiscal LocalLocalFiscal State-wideMarketTax Disparities Tax Property Disparities PropertyValue Total Taxes PerNew Use Capacity Tax Capacity Capacity Taxes Taxes Taxes Taxes Taxes Sq. Ft./UnitApartments 233,750 0 233,750 222,424 0 0 33,451 255,875 2,326.14TOTAL233,7500233,750222,4240033,451255,875Note: 1. Taxes and tax increment will vary significantly from year to year depending upon values, rates, state law, fiscal disparities and other factors which cannot be predicted.Total Property Taxes 255,875less State-wide Taxes 0less Fiscal Disp. Adj. 0less Market Value Taxes (33,451)less Base Value Taxes (8,749)Annual Gross TIF 213,674 WHAT IS EXCLUDED FROM TIF?TAX CALCULATIONSPROJECT INFORMATION (Project Tax Capacity)Prepared by Ehlers 2/16/2021Tax Increment Cashflow - Page 3Lake Place Senior Apartments - No InflationCity of Chanhassen, MN 110-unit Senior Multifamily DevelopmentTAX INCREMENT CASH FLOWProject Original Fiscal Captured Local Annual Semi-Annual State % Retained Semi-Annual Semi-Annual PERIOD% of Tax Tax Disparities Tax Tax Gross Tax Gross Tax Auditor Fee For Admin. Net Tax Present ENDING Tax PaymentOTC Capacity Capacity Incremental Capacity Rate Increment Increment 0.36% 10% Increment Value Yrs. Year Date- - - - 02/01/23100% 58,438 (9,195) - 49,243 95.155% 46,856 23,428 (84) (2,334) 21,010 20,801 0.52023 08/01/23100% 58,438 (9,195) - 49,243 95.155% 46,856 23,428 (84) (2,334) 21,010 41,498 12023 02/01/24100% 233,750 (9,195) - 224,555 95.155% 213,674 106,837 (385) (10,645) 95,807 135,413 1.52024 08/01/24100% 233,750 (9,195) - 224,555 95.155% 213,674 106,837 (385) (10,645) 95,807 228,861 22024 02/01/25100% 233,750 (9,195) - 224,555 95.155% 213,674 106,837 (385) (10,645) 95,807 321,844 2.52025 08/01/25100% 233,750 (9,195) - 224,555 95.155% 213,674 106,837 (385) (10,645) 95,807 414,364 32025 02/01/26100% 233,750 (9,195) - 224,555 95.155% 213,674 106,837 (385) (10,645) 95,807 506,424 3.52026 08/01/26100% 233,750 (9,195) - 224,555 95.155% 213,674 106,837 (385) (10,645) 95,807 598,025 42026 02/01/27100% 233,750 (9,195) - 224,555 95.155% 213,674 106,837 (385) (10,645) 95,807 689,171 4.52027 08/01/27100% 233,750 (9,195) - 224,555 95.155% 213,674 106,837 (385) (10,645) 95,807 779,864 52027 02/01/28100% 233,750 (9,195) - 224,555 95.155% 213,674 106,837 (385) (10,645) 95,807 870,105 5.52028 08/01/28100% 233,750 (9,195) - 224,555 95.155% 213,674 106,837 (385) (10,645) 95,807 959,898 62028 02/01/29100% 233,750 (9,195) - 224,555 95.155% 213,674 106,837 (385) (10,645) 95,807 1,049,244 6.52029 08/01/29100% 233,750 (9,195) - 224,555 95.155% 213,674 106,837 (385) (10,645) 95,807 1,138,145 72029 02/01/30100% 233,750 (9,195) - 224,555 95.155% 213,674 106,837 (385) (10,645) 95,807 1,226,604 7.52030 08/01/30100% 233,750 (9,195) - 224,555 95.155% 213,674 106,837 (385) (10,645) 95,807 1,314,623 82030 02/01/31100% 233,750 (9,195) - 224,555 95.155% 213,674 106,837 (385) (10,645) 95,807 1,402,203 8.52031 08/01/31100% 233,750 (9,195) - 224,555 95.155% 213,674 106,837 (385) (10,645) 95,807 1,489,349 92031 02/01/32100% 233,750 (9,195) - 224,555 95.155% 213,674 106,837 (385) (10,645) 95,807 1,576,060 9.52032 08/01/32100% 233,750 (9,195) - 224,555 95.155% 213,674 106,837 (385) (10,645) 95,807 1,662,341 102032 02/01/33100% 233,750 (9,195) - 224,555 95.155% 213,674 106,837 (385) (10,645) 95,807 1,748,192 10.52033 08/01/33100% 233,750 (9,195) - 224,555 95.155% 213,674 106,837 (385) (10,645) 95,807 1,833,615 112033 02/01/34100% 233,750 (9,195) - 224,555 95.155% 213,674 106,837 (385) (10,645) 95,807 1,918,614 11.52034 08/01/34100% 233,750 (9,195) - 224,555 95.155% 213,674 106,837 (385) (10,645) 95,807 2,003,190 122034 02/01/35100% 233,750 (9,195) - 224,555 95.155% 213,674 106,837 (385) (10,645) 95,807 2,087,345 12.52035 08/01/35100% 233,750 (9,195) - 224,555 95.155% 213,674 106,837 (385) (10,645) 95,807 2,171,082 132035 02/01/36100% 233,750 (9,195) - 224,555 95.155% 213,674 106,837 (385) (10,645) 95,807 2,254,402 13.52036 08/01/36100% 233,750 (9,195) - 224,555 95.155% 213,674 106,837 (385) (10,645) 95,807 2,337,307 142036 02/01/37100% 233,750 (9,195) - 224,555 95.155% 213,674 106,837 (385) (10,645) 95,807 2,419,800 14.52037 08/01/37100% 233,750 (9,195) - 224,555 95.155% 213,674 106,837 (385) (10,645) 95,807 2,501,883 152037 02/01/38100% 233,750 (9,195) - 224,555 95.155% 213,674 106,837 (385) (10,645) 95,807 2,583,557 15.52038 08/01/38100% 233,750 (9,195) - 224,555 95.155% 213,674 106,837 (385) (10,645) 95,807 2,664,825 162038 02/01/39100% 233,750 (9,195) - 224,555 95.155% 213,674 106,837 (385) (10,645) 95,807 2,745,688 16.52039 08/01/39100% 233,750 (9,195) - 224,555 95.155% 213,674 106,837 (385) (10,645) 95,807 2,826,149 172039 02/01/40100% 233,750 (9,195) - 224,555 95.155% 213,674 106,837 (385) (10,645) 95,807 2,906,210 17.52040 08/01/40100% 233,750 (9,195) - 224,555 95.155% 213,674 106,837 (385) (10,645) 95,807 2,985,873 182040 02/01/41100% 233,750 (9,195) - 224,555 95.155% 213,674 106,837 (385) (10,645) 95,807 3,065,139 18.52041 08/01/41100% 233,750 (9,195) - 224,555 95.155% 213,674 106,837 (385) (10,645) 95,807 3,144,011 192041 02/01/42100% 233,750 (9,195) - 224,555 95.155% 213,674 106,837 (385) (10,645) 95,807 3,222,490 19.52042 08/01/42100% 233,750 (9,195) - 224,555 95.155% 213,674 106,837 (385) (10,645) 95,807 3,300,579 202042 02/01/43100% 233,750 (9,195) - 224,555 95.155% 213,674 106,837 (385) (10,645) 95,807 3,378,280 20.52043 08/01/43100% 233,750 (9,195) - 224,555 95.155% 213,674 106,837 (385) (10,645) 95,807 3,455,594 212043 02/01/44100% 233,750 (9,195) - 224,555 95.155% 213,674 106,837 (385) (10,645) 95,807 3,532,523 21.52044 08/01/44100% 233,750 (9,195) - 224,555 95.155% 213,674 106,837 (385) (10,645) 95,807 3,609,070 222044 02/01/45100% 233,750 (9,195) - 224,555 95.155% 213,674 106,837 (385) (10,645) 95,807 3,685,236 22.52045 08/01/45100% 233,750 (9,195) - 224,555 95.155% 213,674 106,837 (385) (10,645) 95,807 3,761,022 232045 02/01/46100% 233,750 (9,195) - 224,555 95.155% 213,674 106,837 (385) (10,645) 95,807 3,836,432 23.52046 08/01/46100% 233,750 (9,195) - 224,555 95.155% 213,674 106,837 (385) (10,645) 95,807 3,911,467 242046 02/01/47100% 233,750 (9,195) - 224,555 95.155% 213,674 106,837 (385) (10,645) 95,807 3,986,128 24.52047 08/01/47100% 233,750 (9,195) - 224,555 95.155% 213,674 106,837 (385) (10,645) 95,807 4,060,418 252047 02/01/48100% 233,750 (9,195) - 224,555 95.155% 213,674 106,837 (385) (10,645) 95,807 4,134,338 25.52048 08/01/48100% 233,750 (9,195) - 224,555 95.155% 213,674 106,837 (385) (10,645) 95,807 4,207,891 262048 02/01/49 Total5,388,715 (19,399) (536,932) 4,832,384 Present Value From 08/01/2022 Present Value Rate 1.00% 4,692,326 (16,892) (467,543) 4,207,891 Prepared by Ehlers & Associates, Inc. - Estimates OnlyN:\Minnsota\Chanhassen\Housing - Economic - Redevelopment\TIF\TIF Districts\TIF 12\Cash Flows\Chanhassen_TIF 12 Cashflow Model.xls   City of Chanhassen Tax Increment Financing District No. 12 14  Appendix C: Findings Including But/For Qualifications The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan for Tax Increment Financing District No. 12, as required pursuant to Minnesota Statutes, Section 469.175, Subdivision 3 are as follows: 1. Finding that Tax Increment Financing District No. 12 is a housing district as defined in M.S., Section 469.174, Subd. 11. Tax Increment Financing District No. 12 consists of one (1) parcel and its internal and adjacent rights-of-way. The development will consist of a new 110-unit mixed-income senior housing apartment facility in the city, all or a portion of which will receive tax increment assistance and will meet income restrictions described in M.S. 469.1761. At least 40 percent of the units receiving assistance will have incomes at or below 60 percent of area median income. 2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future. This finding is supported by the fact that the development proposed in this plan is a housing district that meets the City's objectives for development and redevelopment and is intended for occupancy, in part, by low and moderate-income persons. At least 40% of the assisted housing units are intended to be income restricted. Due to decreased rental income from affordable units, there is insufficient cash flow to provide a sufficient rate of return, pay operating expenses, and service the debt necessary to develop the housing. This leaves a gap in the funding for the project and makes this housing development feasible only through assistance, in part, from tax increment financing. The necessity of public assistance is true for most affordable housing development in Minnesota. The developer was asked for and provided a letter and a proforma outlining project source and uses as well as projected rent, vacancy and financing assumptions. City staff and the City’s advisors reviewed the information and have determined the project is not feasible without the proposed assistance due anticipated rent levels and market returns not supporting the development costs for the site. Based on the review, the City does not expect that a development of this type would occur in the reasonably foreseeable future but-for the use of tax increment assistance. 3. Finding that the TIF Plan for Tax Increment Financing District No. 12 conforms to the general plan for the development or redevelopment of the municipality as a whole. The Planning Commission is expected to review the TIF Plan on March 2, 2021 to make a recommendation to the City Council whether the TIF Plan conforms to the general development plan of the City. 4. Finding that the TIF Plan for Tax Increment Financing District No. 12 will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of the Downtown Chanhassen Redevelopment Project Area by private enterprise.   City of Chanhassen Tax Increment Financing District No. 12 15  Through the implementation of the TIF Plan, the City will provide an impetus for residential development, which is desirable and necessary for providing for an increased population and increased need for life-cycle housing within the City. PLANNING COMMISSION STAFF REPORT Tuesday, March 2, 2021 Subject Approval of Planning Commission Minutes dated February 2, 2021 Section APPROVAL OF MINUTES Item No: D.1. Prepared By Jean Steckling, Senior Admin. Support Specialist File No:  PROPOSED MOTION: The Chanhassen Planning Commission recommends approval of the minutes from its February 2, 2021 meeting. ATTACHMENTS: Planning Commission Meeting Minutes dated February 2, 2021 CHANHASSEN PLANNING COMMISSION REGULAR MEETING MINUTES FEBRUARY 2, 2021 CALL TO ORDER: Chairman Weick called the meeting to order at 7:00 p.m. MEMBERS PRESENT: Steven Weick, Mark Randall, Michael McGonagill, Doug Reeder, Laura Skistad, Eric Noyes, and Mark von Oven STAFF PRESENT: Bob Generous, Senior Planner and MacKenzie Young-Walters, Associate Planner PUBLIC PRESENT: Ed Myslivecek 10151 Great Plains Boulevard, Chaska, MN Chairman Weick reviewed guidelines for conducting the virtual Planning Commission meeting. PUBLIC HEARING: CONSIDER A REQUEST FOR VARIANCES, INCLUDING EXCEEDING THE 1,000 SQUARE-FOOT, DETACHED ACCESSORY STRUCTURE SIZE LIMIT, TO CONSTRUCT A DETACHED GARAGE AND ADD A BATHROOM TO AN EXISTING DETACHED STRUCTURE ON A PROPERTY LOCATED AT 10151 GREAT PLAINS BOULEVARD Associate Planner MacKenzie Young-Walters presented the staff report on this item, noting that, if the commission does not pass it with a ¾ majority vote, the item will go to city council on February 22, 2021. Commissioner Skistad arrived. The applicant is requesting a variance on 4.37 acres for an addition as well as a garage that would exceed the current 1,000 square-foot limit on accessory structures as outline in City Code. The present zoning is A2 – Agricultural Estate District. There are bluffs present but they would not impact the proposed project, so no variance is being requested from any setback. This district does require a minimum of a 2½ acre lot size, 50 foot and rear setbacks, 10-foot side yard setback, 30-foot bluff setback, 20-foot bluff impact zone setback, all structures are limited to a 35-foot maximum height, and the property is limited to a maximum lot cover of 20 percent. There is a detached garage present on the property with a 728 square-foot footprint, a summer kitchen of 456 square-feet, and a garden shed of 200 square-feet which leads to a non- Planning Commission Minutes – February 2, 2021 2 conforming accessory structure total of 1,384 square-feet. The house and summer kitchen are older historic structures dating to the late nineteenth century. The applicant is proposing to construct a 1,382 square-foot detached garage with approximately 864 square-feet of upper-level storage. They are also proposing a 76 square-foot addition to the summer cottage. The summer kitchen and shed are already over the 1,000 square-foot limit. The existing garage does not provide enough space to store the applicant’s vehicles as well as equipment needed to maintain the site. The addition to the summer kitchen would facilitate a basement area which would prevent bathroom pipes from freezing in the winter. The detached garage would be more in keeping with the historic nature of the site. Neighboring structures have larger detached structures. The applicant does not intend to use either structure in a manner either for home occupation or as a dwelling unit. In 2007, an accessory structure site ordinance was passed to prevent the construction of large, detached buildings that lend themselves to future use as part of home occupations in A2 and RR districts. The intent of the nonconforming use ordinance is to prevent the expansion of and encourage the elimination of nonconforming structures. The applicant does have the ability to add additional garage space via an alternate configuration so they could do an attached garage without the requested variance. Staff does not believe the applicant has demonstrated that it’s not feasible to add the bathroom within the existing summer kitchen without expanding the footprint. In general, outbuildings on single family residential properties do not typically have bathrooms, therefore, staff can’t find that the inability to add a bathroom would be of practical difficulty. Additionally, when looking at single family residential properties throughout the city and this neighborhood typically there are not properties with multiple detached garages. There is a long- term potential to use these structures either as home occupation or a second dwelling unit. A variance would open up the potential for enforcement issues down the road. Staff is recommending that the requested variance be denied. Chairman Weick asked if space could be added to the existing detached garage to allow for additional storage. Mr. Young-Walters explained that, if the applicant chose to take down the garden shed, they could add a smaller addition to the garage to keep under the 1,000 square-foot limit. But another 150 square-feet on the detached garage would likely not accomplish the applicant’s goal. Chairman Weick clarified that adding to the house would be an option because it was not affecting the accessory structure limit. Commissioner Randall asked if historic significance played into what the applicant is allowed to do or not. Mr. Young-Walters responded that the city does not have historic preservation restrictions which affect their ability to utilize the property. Planning Commission Minutes – February 2, 2021 3 Commissioner McGonagill asked about the pictures included in the packet. Mr. Young-Walters explained that the lettered pictures in the packet were provided by the applicant to show other accessory structures in his neighborhood as well as properties with clutter due to insufficient storage. Commissioner McGonagill confirmed that the plan sheets in the packet were the most recent submitted by the applicant. Mr. Young-Walters stated that the plans were drafted in December. Staff had requested elevation and floor plans of structures so they could see how to configure and utilize the space. Commissioner Reeder asked if staff would have the same concerns about the potential for a home industry being run in the detached garage if, instead, the property owner added a 5,000 square-foot addition to the house. Mr. Young-Walters stated there is potential for an addition of that size. Historically, he has seen people are more likely to use a detached garage for a business so that employees are not showing up to a site attached to the main home. A garage this size would raise concern and there would need to be a comment added that it could not be used for a business. Commissioner Reeder clarified that the goal of staff was to lessen the opportunity to deal with future home businesses in that location. Chairman Weick invited the applicant to join via Zoom. Ed Myslivecek, the applicant, stated he has lost two driveways out to Highway 101 for safety reasons which have extended his driveway by more than 300 feet. This necessitated a larger tractor to plow snow and a place to store the tractor as well as two classic cars. He also wished to add a bathroom to the outbuilding, referred to as a cottage or summer kitchen, for use with large groups such as a local youth group which meet there. He spoke about the history of the site which was built in the 1860s and has had farm use outbuildings torn down or replaced over the years. The proposed garage would not be for contractor use and he feels he is not adding more space than others in his neighborhood. He has been planning to build a structure for a couple years and worked closely with the Planning Department on plans. He feels that the planned structure appearance is close to what is already on the property and would not be an eyesore. Chairman Weick opened the discussion to Commissioner questions. Commissioner Noyes asked about input from the neighbors. Some had responded to his survey but others had not. Did they not have an opinion or are they against it? He felt that the inquiry seemed like it was asking for approval, not concerns. Planning Commission Minutes – February 2, 2021 4 Mr. Myslivecek stated that he sent out fourteen surveys and did not receive response from two of his neighbors. He attempted to word the notice in a way to not persuade them but to give them information on what he was planning. He does not know why the two other neighbors did not respond. Commissioner McGonagill asked how many classic cars are kept in the garage. Mr. Myslivecek responded that there were two, a truck and a car. Commissioner McGonagill spoke about the nearby AutoMotorPlex Chanhassen garage condominium and asked if that might be an option to store the vehicles. Mr. Myslivecek stated he could find a way to store the vehicles in local barns and garages, which would be cheaper than putting another building on the property. He loves the site and feels that an additional structure would represent the look of the farm 160 years ago and would add to the quality of the property. Commissioner McGonagill confirmed that the applicant has explored the use of car condos and has chosen not to do that. Mr. Myslivecek stated that he does not repair the cars but buys them finished to enjoy. Commissioner McGonagill understands that the applicant is trying to protect his vehicles and feels the car condos are a great option. He asked about the reference to a cottage on the plans. He felt that the term “cottage” implied a living unit. Mr. Myslivecek clarified that the structure is sometimes referred to as a summer kitchen, which was its original use. It’s currently used as a gathering spot for a book club and youth group and it is an inconvenience that there is no bathroom. There is no kitchen in the structure. Commissioner McGonagill felt that the term cottage implied that it could be used as a living unit. Mr. Myslivecek agreed that the building could be converted into sleeping quarters if they wanted, but that was not their intent. Commissioner von Oven spoke about his training as a Planning Commissioner. The city has a plan in place and the Planning Commission is in a position to approve variances to the city plan. If the Commission is granting variances all the time, a better option would be to change the city plan so that there isn’t a line of residents wanting variances to their property. He asked Mr. Myslivecek what he would tell people about his project which made it deserve the special consideration of a variance. Planning Commission Minutes – February 2, 2021 5 Mr. Myslivecek stated, if he were in the position of the Planning Commission, he might fear that other people would want to create a variance on their property. However, they would likely not have the same reasoning to do so. Commissioner Reeder asked if the applicant would consider adding a garage to the house if the Commission denies the request. Mr. Myslivecek explained that option is a last resort that would require additional consideration. He doesn’t feel it goes with the historic vision of the property. Chairman Weick asked if the single door shown on the plans was sufficient to get everything in and out of the proposed garage. Mr. Myslivecek explained that the design is on the south side to allow for snow and use of the sun. Most of the contents of the building are not moved in and out often. The van and tractor would have plenty of room and items could be removed one at a time out of the single door. Chairman Weick thanked the applicant for answering Commissioners questions as they considered all of the details surrounding the project. Chairman Weick opened the public hearing. There was no public comment received prior to or during the meeting. Chairman Weick closed the public hearing. Chairman Weick asked for Commissioner comment, discussion, and a motion. Commissioner Reeder commented that the property is unique, surrounded by two golf courses and a nursery. Recently a four-lane highway has been built in front of it. He thinks that what the applicant is requesting is reasonable since it is not in the middle of a residential area. Commissioner McGonagill asked what kind of requirements the applicant would be under if he were to rebuild the new garage in the footprint of the former barn. Mr. Young-Walters explained that they would still need to go through the variance process. Commissioner McGonagill clarified that the proposed detached garage does not resemble the old barn. Mr. Young-Walters confirmed that it does not. Planning Commission Minutes – February 2, 2021 6 Commissioner McGonagill stated that he was opposed to the proposal. There are already nearly 1,400 square-feet of accessory structures on the property and the plan would increase it to more than double the square-footage allowed on site. It is one of the largest variances he has seen during his time on the Planning Commission. He feels that the car condos are an available option for the storage of classic cars. He agrees that adding a garage to the house wouldn’t look great aesthetically. He is a firm believer in property rights but his training as a Planning Commissioner taught him what to look at in a variance and felt he has to stick to the city plan. Commissioner Randall stated that many of the variances the Commission has looked at in the past have involved lot minimums or non-conforming homes on lakes or older areas. The property in question is quite large and has historic significance. He also expressed concern about the home’s proximity to Highway 101. Was the applicant aware of the longer driveway when he purchased the property? He would hope for some sort of compromise. Commissioner Noyes stated that he sees the viewpoints presented. His concern is in setting a precedence by allowing this variance. What is the Planning Commission’s response to other inquiries on similar size properties if they approve this variance? Commissioner Reeder responded that not a lot of other properties have this type of historical significance and the reason for variances is to deal with properties that are significantly different than most properties in the city. Commissioner von Oven questioned if it made sense that every property in the city should be limited to a volume-based metric of 1,000 square-feet or if it should be adjusted to measuring on a proportional base as done with hard structures. Maybe it shouldn’t be a one-off variance but should instead be changed in the City Code. Saying this is the exception to the rules because of non-specific things would put the Planning Commission in a position of setting precedence for similar properties. Chairman Weick asked if the entire property was buildable acreage or if there were forestry or ravines. Mr. Young-Walters clarified that there was a bluff which was undevelopable. Chairman Weick felt the reduction in buildable lot size may affect consideration of the plans. Commissioner Reeder asked, if the applicant came back with a plan where he moved the garage closer to the house and put a walkway between the structures, could he get away from the definition of accessory structure and be considered part of the main structure. Mr. Young-Walters would need to look at plans and consult with building officials but the City Code reads that it has to have a common wall. In theory, a breezeway may meet code. Planning Commission Minutes – February 2, 2021 7 Commissioner Reeder clarified that the applicant could build a garage if he moved it closer to the home and it may not require a variance. Mr. Young-Walters stated that the applicant would still need a variance for the addition to the summer kitchen which would exceed the square-footage limitations. Commissioner Reeder felt the Planning Commission was being “sticky” by saying the applicant can put the garage in one location but not another because of the definition of accessory buildings. Chairman Weick asked how much of the property was buildable. Mr. Young-Walters stated he was not comfortable with speculating on how much is not buildable but certainly some is not buildable due to the bluff. He added that staff have prepared motions for or against the proposal. Commissioner McGonagill moved, Commissioner Randall seconded that the Chanhassen Planning Commission recommends that the City Council deny the requested 1,842-square foot accessory structure size variance, and adopt the Findings of Fact and Decision Recommendations (Denial). Commissioner McGonagill stated he appreciates that this is the owner’s property; however, the variance is large. He looks forward to the City Council’s review of the item. He feels that Commissioner von Oven’s suggestion about adjusting the ratio of structures to lot size has merit. Commissioner von Oven sees the property and understands the applicant’s reasons for wanting to make changes. However, the Planning Commission is charged with the preservation of the city plan. If there are a number of properties out there like this, a change in how to measure accessory structures would allow Mr. Myslivecek and other property owners to make these types of changes. Chairman Weick asked for additional comments and thanked the applicant, commissioners, and staff. He called for a roll call vote. The motion carried with a vote of 4 to 3. Commissioner Skistad, Commissioner Reeder, and Commissioner Randall voted nay. Mr. Young-Walters stated that the item will go to the City Council at the February 22, 2021 City Council meeting and they will be provided with a copy of Commissioners’ comments. APPROVAL OF MINUTES: Commissioner Noyes noted the verbatim minutes of the Planning Commission meeting dated January 19, 2021 as presented. Planning Commission Minutes – February 2, 2021 8 ADMINISTRATIVE PRESENTATIONS: 2020 Year-End Review and 2021 Work Program Senior Planner Bob Generous presented the 2020 Year-End Review and 2021 Work Program. Remodeling activity on residential homes has been steady as people are making improvements. The city is still waiting on 2020 Census data. Because of single-family developments, there are currently more persons per household than historically allocated for the community. If there are specific projects, research, or ordinance amendments the Planning Commission would like the Planning Department to review, they can be added to the 2021 Work Plan. Commissioner McGonagill asked when the Moments of Chanhassen development would start construction. Mr. Generous stated there were some issues outside of the city’s control, but construction would probably begin the summer of 2021. Chairman Weick felt that 2020 was a busy year for the Planning Commission. Mr. Young-Walters added that the drop in cases was related to the pandemic. Fewer businesses were opening resulting in fewer needs for signage. Commissioner Skistad asked when the report will be presented to the City Council. Mr. Generous said that the report would go to the City Council in March. Commissioner McGonagill added that the Planning Commission spent a lot of time reviewing and upgrading City Code. City Council Action Update Mr. Generous presented highlights of action taken by the City Council on planning matters. Mr. Young-Walters added that the City Council amended one of the conditions for the Golf Zone property to give the driving range until June 14, 2021 to install nets. Planning Commission Interview Process Mr. Generous stated that the City Council is revising their interview process to include one member of the Planning Commission and one alternate. Chairman Weick asked for volunteers from the Planning Commission. Planning Commission Minutes – February 2, 2021 9 Commissioner von Oven volunteered with Commissioner Skistad as alternate. Commissioner Noyes also agreed to be an alternate if needed. March Attendance Chairman Weick asked the Planning Commission to contact Community Development Director Kate Aanenson with March availability due to the need for a quorum at meetings. Commissioner Randall asked when the new Planning Commission members would begin. Chairman Weick stated that they would begin at the first meeting in April 2021. Chairman Weick asked if there were any Commissioner presentations. Commissioner von Oven asked for clarification on what Commissioner presentations may include. Chairman Weick explained that there may be a question about the status of an old case, a variance that has not been worked on in a while, future direction, or anything the Planning Commission may want on record. Mr. Generous added that it may include information learned at a conference that a Commissioner may want to share with the rest of the members. ADJOURNMENT: Commissioner McGonagill moved to adjourn the meeting. All voted in favor and the motion carried unanimously with a vote of 7 to 0. The Planning Commission meeting was adjourned at 8:25 p.m. Submitted by Kate Aanenson Community Development Director Reviewed by Jean Steckling PLANNING COMMISSION STAFF REPORT Tuesday, March 2, 2021 Subject Review of Legal Opinions Section ADMINISTRATIVE PRESENTATIONS Item No: E.1. Prepared By Kate Aanenson, Community Development Director File No:  SUMMARY OF REQUEST This item is provided as continuing education for the Planning Commissioners on current issues resulting from Planning Commission actions in other Minnesota cities. Staff has attached two recent court cases for the Planning Commission to review. These cases revolve around the interpretation of City Code and the findings of fact necessary to grant a variance. Questions of this nature can come before the Planning Commission and it is important for both staff and Planning Commissioners to keep in mind that their comments and decisions can be subject to judicial review. BACKGROUND Neighborly Dispute ­ Richard T. Jellinger, et al v. City of Anoka In this case, a city become involved in a dispute between neighbors. One of the neighbors disputed the city’s interpretation of its ordinance, alleging that a fence, constructed with a permit, was too high, that the city misapplied its trash container ordinance, and that a dog crossing sign violated the sign code. The city argued that the court should defer to its interpretation of its ordinance. The court rejected this argument noting that the language of the ordinance in question was clear and unambiguous, and that the city was bound by plain language of the ordinance. While the court noted that judicial deference is given to quasi­judicial decision (i.e. granting variances), it does not give the same deference to the interpretation of City Code. The court also notes that the intent of the ordinance cannot override the plain text of the ordinance. It is important to realize that in this case, the city’s failure to define several terms used in the ordinance led to it being bound by the dictionary definition of the Code and its interpretation of its own fence ordinance being overturned. In the case of the trash cans and sign, the court found that the plain text and definitions supported the city’s interpretation. Staff included this case as a reminder of: 1) why it is so important to continually review and update the City’s Code; and, 2) as to why staff requires applicants seeking very minor deviations for the City Code to go through the variance process. Simply put, staff’s actions are always constrained by the plain text of the City Code. The Planning Commission and City Council have more flexibility, but, as the next case will show, they too must abided by certain restrictions when allowing deviations from ordinances. Overturned Variance ­ Thomas Tulien v. City of Minneapolis In this case, a city’s resident challenged an issued variance and conditional use permit (CUP) by contending that the city’s decisions were “unreasonable, arbitrary, and capricious”. City decisions can be overturned on these grounds when it is demonstrated that the reasons given by the Planning Commission and City Council for their action are legally insufficient PLANNING COMMISSION STAFFREPORTTuesday, March 2, 2021SubjectReview of Legal OpinionsSectionADMINISTRATIVEPRESENTATIONS Item No: E.1.Prepared By Kate Aanenson, CommunityDevelopment Director File No: SUMMARY OF REQUESTThis item is provided as continuing education for the Planning Commissioners on current issues resulting from PlanningCommission actions in other Minnesota cities. Staff has attached two recent court cases for the Planning Commission toreview. These cases revolve around the interpretation of City Code and the findings of fact necessary to grant avariance. Questions of this nature can come before the Planning Commission and it is important for both staff andPlanning Commissioners to keep in mind that their comments and decisions can be subject to judicial review.BACKGROUNDNeighborly Dispute ­ Richard T. Jellinger, et al v. City of AnokaIn this case, a city become involved in a dispute between neighbors. One of the neighbors disputed the city’s interpretationof its ordinance, alleging that a fence, constructed with a permit, was too high, that the city misapplied its trash containerordinance, and that a dog crossing sign violated the sign code. The city argued that the court should defer to itsinterpretation of its ordinance. The court rejected this argument noting that the language of the ordinance in question wasclear and unambiguous, and that the city was bound by plain language of the ordinance. While the court noted that judicialdeference is given to quasi­judicial decision (i.e. granting variances), it does not give the same deference to theinterpretation of City Code. The court also notes that the intent of the ordinance cannot override the plain text of theordinance. It is important to realize that in this case, the city’s failure to define several terms used in the ordinance led to itbeing bound by the dictionary definition of the Code and its interpretation of its own fence ordinance being overturned. Inthe case of the trash cans and sign, the court found that the plain text and definitions supported the city’s interpretation.Staff included this case as a reminder of: 1) why it is so important to continually review and update the City’s Code;and, 2) as to why staff requires applicants seeking very minor deviations for the City Code to go through the varianceprocess. Simply put, staff’s actions are always constrained by the plain text of the City Code. The PlanningCommission and City Council have more flexibility, but, as the next case will show, they too must abided by certainrestrictions when allowing deviations from ordinances.Overturned Variance ­ Thomas Tulien v. City of MinneapolisIn this case, a city’s resident challenged an issued variance and conditional use permit (CUP) by contending that the city’s decisions were “unreasonable, arbitrary, and capricious”. City decisions can be overturned on these grounds when it is demonstrated that the reasons given by the Planning Commission and City Council for their action are legally insufficient or factually unsupported. The court determined that in this case the city failed to consider and address all elements required for the issuance of a CUP and that the Findings of Fact and comments by Commissioners did not support the finding that practical difficulties existed. For these reasons, the court overturned both the CUP and issued variance. Staff included this case as a reminder that: 1) practical difficulties must be the result from the property or its surroundings, the zoning code itself cannot be the practical difficulty; 2) that the variances granted should not exceed the demonstrated practical difficulty; 3) that comments made by staff and Planning Commissioners during public hearings and deliberations are part of the justification for city decisions; and, 4) that cities must demonstrate that they've considered all required factors before issuing variances or CUPs. ATTACHMENTS: Neighborly Dispute Variance Overturned 1 This opinion will be unpublished and may not be cited except as provided by Minn. Stat. § 480A.08, subd. 3 (2018). STATE OF MINNESOTA IN COURT OF APPEALS A20-0620 Richard T. Jellinger, et al., Appellants, vs. City of Anoka, Respondent, Jefferson L. Weaver, et al., Respondents. Filed December 21, 2020 Affirmed in part, reversed in part, and remanded Reyes, Judge Anoka County District Court File No. 02-CV-18-5955 Richard T. Jellinger, Coon Rapids, Minnesota (for appellants) Scott C. Baumgartner, Hawkins & Baumgartner, PA, Anoka, Minnesota (for respondent City of Anoka) Kurt B. Glaser, Smith & Glaser, Minneapolis, Minnesota; and William K. Goodrich, Randall and Goodrich, PLC, Anoka, Minnesota (for respondents Weavers) Considered and decided by Connolly, Presiding Judge; Reyes, Judge; and Gaïtas, Judge. 2 U N P U B L I S H E D O P I N I O N REYES, Judge Appellants challenge the district court’s entry of summary judgment for respondents, arguing that respondents-neighbors’ (1) fence violates a city ordinance regulating fence height; (2) trash- and recycling-container storage violates a city ordinance regulating container placement; and (3) dog sign violates a city ordinance regulating the display of signs. Respondents request attorney fees. We affirm in part, reverse in part, and remand. FACTS The undisputed facts of this case are as follows: appellants Richard T. and Margaret K. Jellinger (the Jellingers) and respondents Jefferson L. and Robin A. Weaver (the Weavers) are neighbors, living on two of three lots between Rice Street and the Mississippi River in Anoka, Minnesota. The Weavers’ lot lies between the Mississippi River to the south and the Jellingers’ lot to the north. The Weavers’ lot is a riparian lot. A private drive crosses the Jellingers’ lot and serves both the Jellingers’ and the Weavers’ lots because neither lot directly fronts on Rice Street. Figure 1 below is an aerial photograph of the lots. The Weavers obtained a permit from the City of Anoka (the city) to construct a six- foot-high, fifty-six-foot-long fence along the lot boundary shared with the Jellingers. The Jellingers complained about the fence height, arguing that it violated the four-foot height limit in the city’s fence ordinance for fences in front of houses. The city concluded that the fence location and construction did not violate the fence ordinance because the fence is located on the rear lot line. 3 The Jellingers also complained to the city about the Weavers leaving their trash and recycling containers on the private drive for collection. The city concluded that the city’s trash ordinance, which requires people who place their containers on the street or curb to Private Drive Jellingers’ Residence Weavers’ Fence (approximate length) Weavers’ Main Entrance Figure 1. This aerial photograph is taken from the summary-judgment record. We added labels, north arrow, and a depiction of the private drive to clarify the layout. N Rice Street 4 return the containers to storage within 12 hours, did not apply to the Weavers because they “reside on a riparian lot not abutting a public street.” The Weavers also display a yellow, diamond-shaped plaque stating “Golden Retriever Crossing” and containing a silhouette of a dog (dog sign) on their fence between their lot and the Jellingers’ lot. The Jellingers complained about the dog sign to the city. The city concluded that the dog sign is not a sign for purposes of the city’s sign ordinance because it is “a decorative plaque not directed at the public.” The Jellingers sought a declaratory judgment that the Weavers’ fence, trash- and recycling-container storage, and dog sign violated various city ordinances. The Jellingers moved for summary judgment on all three issues. In response, the Weavers and the city (collectively, respondents) each requested that the district court grant summary judgment in their favor. The district court denied the Jellingers’ motion and granted summary judgment for respondents. This appeal follows. D E C I S I O N I. We review summary judgment interpreting unambiguous city ordinances de novo. In reviewing the district court’s grant of summary judgment, we review de novo “whether there are any issues of material fact and whether the district court erred in its application of the law.” Montemayor v. Sebright Prods., Inc., 898 N.W.2d 623, 628 (Minn. 2017). We view the facts in the light most favorable to the party against whom summary judgment was granted. Grondahl v. Bulluck, 318 N.W.2d 240, 242 (Minn. 1982). 5 “[T]he interpretation of an existing ordinance is a question of law for the court.” Frank’s Nursery Sales, Inc. v. City of Roseville, 295 N.W.2d 604, 608 (Minn. 1980). “Ordinances are construed according to the recognized principles of statutory construction.” Chanhassen Estates Residents Ass’n v. City of Chanhassen, 342 N.W.2d 335, 339, n.3 (Minn. 1984). We first determine whether the ordinance is ambiguous. Cannon v. Minneapolis Police Dept., 783 N.W.2d 182, 193 (Minn. App. 2010). An ordinance is ambiguous only when it is subject to multiple reasonable interpretations. Id. at 193. If the ordinance is unambiguous, we apply the plain and ordinary meaning of its terms. Frank’s Nursery, 295 N.W.2d at 608; State ex rel. Beaulieu v. RSJ, Inc., 552 N.W.2d 695, 701 (Minn. 1996). As an initial matter, respondents argue that we should defer to the city’s interpretation of its own ordinances. But the interpretation of ordinances is a question of law, which we review de novo. RDNT, LLC v. City of Bloomington, 861 N.W.2d 71, 75 (Minn. 2015) (citing Frank’s Nursery, 295 N.W.2d at 608); cf. St. Otto’s Home v. Minn. Dept. of Human Servs., 437 N.W.2d 35, 40 (Minn. 1989) (“No deference is given to the agency interpretation if the language of the regulation is clear and capable of understanding.”). Respondents cite several cases for the proposition of judicial deference to municipal decisionmaking. White Bear Docking and Storage, Inc. v. City of White Bear Lake, 324 N.W.2d 174, 175 (Minn. 1982); Arcadia Dev. Corp. v. City of Bloomington, 125 N.W.2d 846, 850 n.5 (Minn. 1964); Eagle Lake v. Becker County, 738 N.W.2d 788, 792 (Minn. App. 2007); Berndt v. County of Crow Wing, Nos. A05-1381, A05-1409, 2006 WL 6 1073196 (Minn. App. April 25, 2016). But those cases involved challenges to quasi- judicial decisions by local government bodies. It is true that courts defer to the quasi- judicial decisions, such as whether to grant permits or variances, of such entities . In this case, the city issued a permit for the Weavers’ fence; however, the Jellingers did not challenge the permit. Instead, they filed this declaratory judgment action in which resolution of all issues turns on the interpretation of the city’s ordinances. And because we review interpretation of ordinances de novo, we owe the city’s interpretation of its ordinances no deference. II. Because the plain language of the city ordinance prohibiting fences exceeding four feet in height “in front of the front line of a residential structure” applies to the Weavers’ fence, the district court erred by entering summary judgment in favor of respondents. The Jellingers argue that the Weavers’ six-foot fence violates the city’s fence ordinance height restriction. We agree. The fence ordinance states that “[i]n single- and two-family residential districts, no fence may exceed four feet in height above the ground level, in front of the front line of the residential structure, along any street or highway right -of-way, or in the front yard.” Anoka, Minn., Code of Ordinances (ACO), § 78-562(e) (2020) https://library.municode.com/mn/anoka/codes/code_of_ordinances (emphasis added).1 Because the fence ordinance is written in the disjunctive, a fence that exceeds four feet in 1 The city revised its city code in August and September of 2020. The revisions do not change the substance of any applicable sections, except for renumbering. We therefore cite the most recent version of the city code. See Interstate Power Co. v. Nobles Cty. Bd. of Comm’rs, 617 N.W.2d 566, 575 (Minn. 2000) (stating that, generally, “appellate courts apply the law as it exists at the time they rule on a case”). 7 height in any one of the three locations violates the ordinance. See Amaral v. Saint Cloud Hosp., 598 N.W.2d 379, 385 (Minn. 1999) (noting that “or” is generally disjunctive). All parties agree that the only issue is whether the fence is “in front of the front line of the residential structure.” Because the fence ordinance is unambiguous, we look to the plain and ordinary meaning of its terms. The city code does not define “front line” or “front line of the residential structure.” “Front line” is modified by the adjectival prepositional phrase, “of the residential structure,” signifying the specific “front line” to which the phrase refers. “Residential structure” in this context plainly refers to the house. “Front,” with reference to a structure like a house, generally means the side with the main entrance. Merriam-Webster’s Collegiate Dictionary 503 (11th ed. 2014) (defining “front” as “a side of a building, especially the side that contains the principal entrance”); cf. Oxford Dictionary of English 702 (3d ed. 2010) (defining “front” as “the side or part of an object that . . . is normally seen or used first”). We conclude that the plain meaning of “the front line of the residential structure” is a line that runs along the side of the home with the principal or main entrance. Fences may not exceed four feet in height in front of this line. ACO, § 78-562(e). Respondents argue that the Weavers’ lot should be treated differently because it is a riparian lot. See Girvan v. County of Le Sueur, 232 N.W.2d 888 (Minn. 1975) (noting the “peculiar circumstances relating to lakeshore property in Minnesota”). They argue that “the front line of the residential structure” either is, or is on the same side as, the “front lot line” of a lot, and that because the Weavers’ lot is a riparian lot with the f ront lot line abutting the river to the south, the front line of the residential structure must also be to the 8 south. Because the fence is on the north lot line, they contend that the fence is not “in front of the front line of the residential structure.” We are not persuaded. Respondents’ argument confuses the front line of the property with the front line of the residential structure. We agree that the front lot line of a riparian lot abuts the water and that a riparian lot’s front yard is therefore on the side of the lot facing the water. (See Fig. 2). We also agree that the Weavers’ fence is in their rear yard. But none of that changes that the front line of the house is on the north side of the structure, which contains the main entrance and is the part of the house a person approaches first. (See Fig. 2). Here, the Weavers’ fence is “in front of the front line of the residential structure” because, like the main entrance, the fence is on the north side of the house. Because the fence exceeds the height limitation for this area, it violates the fence ordinance. We therefore reverse the district court’s entry of summary judgment for respondents as to the fence, and remand to the district court for entry of summary judgment for the Jellingers on this issue. 9 Private Drive Jellingers’ Residence Weavers’ Front Yard Weavers’ Fence (approximate length) Front line of Weavers’ residence N Figure 2. This is the same aerial photograph as used in Figure 1. We again added labels, north arrow, and a depiction of the private drive to clarify the layout and legal conclusions. Rice Street 10 III. Because the plain language of the city ordinance regulating trash and recycling collection does not apply to the Weavers, the district court did not err by granting summary judgment to respondents. The Jellingers argue that the Weavers violated the city code’s requirement that trash and recycling containers be returned to their place of storage within 12 hours of collection. We disagree. In relevant part, the city’s trash ordinance provides that “[c]ontainers may be placed next to the street or curb on the days scheduled for collection but shall be returned to the place of storage within 12 hours after collection.” ACO, § 70-81(c) (2020). The plain language of the trash ordinance applies specifically to those who place their containers next to the street or curb for collection. Here, the Weavers place their containers on the private drive near their home such that the collectors must travel the private drive in order to collect the Weavers’ trash and recycling. Because the Weavers do not place their containers next to the street or curb, the portion of the trash ordinance requiring residents to return containers to storage within 12 hours of collection does not apply to the Weavers. The Jellingers argue that the intent of the trash ordinance is to provide a “complete system for collection” and to safeguard health and sanitary conditions for city residents, and that failing to apply the trash ordinance to the Weavers undermines these goals. But the intent of the ordinance cannot override the plain language. See Cannon, 783 N.W.2d at 193. Moreover, the Jellingers have not alleged any particular way in which the Weavers’ container storage is unhealthy or unsanitary, or renders the collection system incomplete. We therefore conclude that the district court did not err in granting summary judgment for respondents as to the trash and recycling containers. 11 IV. Because the plain language of the city ordinance defining and regulating signs does not apply to the Weavers’ dog sign, the district court did not err by granting summary judgment to respondents. The Jellingers argue that the Weavers’ dog sign, which they contend resembles an animal-crossing sign, is a sign regulated under the city’s sign ordinance. We disagree. The sign ordinance defines a sign as “a name, identification, description, display, illustration or device which is affixed to or represented directly or indirectly upon a building, structure or land in view of the general public and which directs attention to a product, place, activity, person, institution, or business.” ACO, § 78-512 (2020). The parties dispute whether the dog sign is “in view of the general public.” We again look to the plain meaning of the terms in the definition. “General public” is not defined in the city code, but a dictionary definition provides that “public” means “the people as a whole,” a meaning which “general” simply reinforces. Merriam-Webster’s Collegiate Dictionary 520, 1005 (11th ed. 2014) (defining “general” as “involving, relating to, or affecting the whole”). Here, the dog sign is not in view of the general public. The dog sign is on a private drive, 386 feet from the nearest public street. Only those entering the private drive can see the dog sign. The Jellingers argue that, because delivery drivers, garbage collectors, visitors, and neighbors will see the dog sign when they enter the private drive, it is in view of the general public. But these are not the “people as a whole ,” which is what the term “general public” entails. Further, by statute, a private drive is a privately owned road used by the owner “and those having express or implied permission from the owner, but not by other persons.” Minn. Stat. § 169.011, subd. 57 (2018). In contrast, streets are “open to the 12 use of the public.” Id. § 169.011, subd. 81 (2018). Because the dog sign is visible to non- neighbors only from the private drive, and because only those with express or implied permission to use the private drive may do so, it is not in view of the general public. As a result, the dog sign is not a sign for purposes of the sign ordinance. The Jellingers nevertheless argue that the dog sign is an informational-directional sign. An informational-directional sign is “any sign giving information to employees, visitors or delivery vehicles, but containing no advertising; such sign may include name or business, but must predominantly represent a directional or informational message.” ACO, § 78-512. The Jellingers argue that the dog sign is informational in nature and targets visitors and delivery drivers, fitting within this definition. We are not persuaded. In order to be an informational-directional sign, a display must first meet the definition of “sign.” But as stated above, the dog sign is not in view of the general public because it is located on a private drive 386 feet from the nearest public street, and is therefore not a sign in the first place. Further, informational-directional signs target a broader subset of the general public than the few delivery drivers, neighbors, and guests who will use the private drive and see the dog sign. The dog sign is not an informational-directional sign, and we therefore conclude that the district court did not err in granting summary judgment to respondents as to the dog sign. V. We decline to reach the Weavers’ request for attorney fees. In their appellate brief, the Weavers request attorney fees as compensation for frivolous and vindictive litigation. We decline to reach this issue. 13 Under Minn. R. Civ. App. P. 139.05, subd. 1, “a party seeking attorney[] fees on appeal shall submit such a request by motion under Rule 127.” See Minn. Stat. § 645.44, subd. 15 (2018) (providing that “shall” is mandatory). Rules 139.03 and 139.05 impose a 14-day limitation for submitting this request to the court of appeals. Minn. R. Civ. App. P. 139.05, subd. 1 (providing that, “all motions for fees must be submitted no later than within the time for taxation of costs”); Minn. R. Civ. App. P. 139.03, subd. 1 (providing that, “[a] prevailing party seeking taxation of costs and disbursements shall file and serve a notice of taxation of costs and disbursements within 14 days of the filing of the court ’s order or decision”). If a party has appropriately made a request, we may award attorney fees on appeal when a statute enables it or a contract authorizes it, see Barr/Nelson, Inc. v. Tonto’s, Inc., 336 N.W.2d 46, 53 (Minn. 1983), or as a sanction, Minn. R. Civ. App. P. 139.05 1998 comm. cmt. Because the Weavers have not followed the procedure established by the appellate rules, we decline to reach their request for attorney fees. Affirmed in part, reversed in part, and remanded. This opinion is nonprecedential except as provided by Minn. R. Civ. App. P. 136.01, subd. 1(c). STATE OF MINNESOTA IN COURT OF APPEALS A20-0542 Thomas Tulien, Appellant, vs. City of Minneapolis, Respondent, Black Tree, LLC, d/b/a Yellow Tree Development, Respondent. Filed January 11, 2021 Reversed Hooten, Judge Hennepin County District Court File No. 27-CV-19-15592 Thomas F. DeVincke, Patrick B. Steinhoff, Malkerson Gunn Martin LLP, Minneapolis, Minnesota (for appellant) James R. Rowader, Jr., City Attorney, Brian S. Carter, Assistant City Attorney, Minneapolis, Minnesota (for respondent City of Minneapolis) James J. Thomson, Jr., Michelle E. Weinberg, Kennedy & Graven, Chartered, Minneapolis, Minnesota (for respondent Black Tree LLC, d/b/a Yellow Tree Development) Considered and decided by Hooten, Presiding Judge; Smith, Tracy M., Judge; and Halbrooks, Judge.  Retired judge of the Minnesota Court of Appeals, serving by appointment pursuant to Minn. Const. art. VI, § 10. 2 NONPRECEDENTIAL OPINION HOOTEN , Judge In this appeal from the district court’s grant of summary judgment for respondents City of Minneapolis (City) and Black Tree LLC, d/b/a Yellow Tree Development (Yellow Tree), appellant Thomas Tulien argues that the district court erred by concluding that the Minnesota municipal planning act (MPA), Minnesota Statutes sections 462.351-.365 (2018), allows the City to provide its planning commission, rather than its board of adjustments, with the authority to review and grant variances from the local zoning code when an applicant submits multiple land -use requests. Tulien also argues that the City granted five variances and a conditional use permit without a reasonable basis. We reverse. FACTS This case is an appeal by Tulien from the district court’s grant of summary judgment for respondents. Tulien lives in a house in the Whittier neighborhood of Minneapolis, across an alley from the corner of Blaisdell Avenue and 26th Street West, where Yellow Tree proposed to build a six-story, mixed-use office and residential apartment building (the project). The project deviated from the height, size, and layout zoning requirements of the OR2 district where the building was to be constructed.1 Yellow Tree submitted to the 1 OR2 means High Density Office Residence District. Minneapolis Code of O rdinances § 547.20 (2018). “The office residence districts are established to provide an environment of mixed residential, office, institutional, and where appropriate, small scale retail sales and service uses designed to serve the immediate surroundings. These office residence districts may serve as small to medium scale mixed use areas within neighborhoods, as higher density transitions between downtown and residential neighborhoods, or as freestanding institutions and employment centers throughout the city.” MCO § 547.10 (2018). 3 City’s Planning Commission several applications to deviate from those zoning requirements, including seven variances and a conditional use permit (CUP) to exceed the building height limit for the property.2 City planners at the Minneapolis Department of Community Planning and Economic Development (CPED) first reviewed Yellow Tree’s applications. CPED reviews every application for a land use permit and then recommends to the City whether it should grant or deny the application. Minneapolis, Minn., Code of Ordinances (MCO) §§ 415.20(a)(4) (2013), 525.120(b)(1) (2015). After reviewing Yellow Tree’s applications, CPED recommended that the Planning Commission deny the variance requests because they appeared to be “driven solely by economic considerations by the financial viability of the project” and were “out of scale with the standards of the zoning code and policy guidance of the comprehensive [development] plan.” CPED also recommended that the Planning Commission deny the CUP because it risked injuring the use and enjoyment of surrounding property, failed to comply with the comprehensive plan, would shadow surrounding residential property throughout the year, was out of scale with surrounding properties, and inconsistent with the character of the surrounding uses. In addition to CPED’s recommendation, the Planning Commission received input from Whittier residents and Yellow Tree leading up to and during its meeting to decide the applications. The Whittier Alliance Neighborhood Association and 11 neighborhood 2 Variances are granted to allow a person to use property in a way that does not conform to the specific requirements of the zoning ordinance. Minn. Stat. § 462.357, subd. 6(2) (2018); see also Arcadia Dev. Corp. v. City of Bloomington , 125 N.W.2d 846, 851 (1964). 4 residents expressed their support for the project through a combination of written comments before the meeting and brief speeches during it. Six other residents, including Tulien, commented in opposition to the project. Yellow Tree and DJR Architecture, which designed the project, provided explanations for the applications and answered commissioners’ questions during the meeting. CPED staff also attended the meeting to answer the commissioners’ questions. After hearing from the residents, project developers, and city staff, the Planning Commission rejected CPED’s recommendations and approved all of Yellow Tree’s applications. Tulien appealed the Planning Commission’s decision to the City Council’s Standing Committee on Zoning and Planning (Zoning Committee). Before the Zoning Committee heard the appeal, Yellow Tree modified the project to eliminate two variance requests , changed another variance request, and reduced the building height in the CUP. Nine residents commented to the Zoning Committee in support of Tulien’s appeal and in opposition to the project. The Zoning Committee recommended that the full City Council deny Tulien’s appeal and approve Yellow Tree’s applications. The City Council followed those recommendations. Tulien then appealed to the district court, contending that the Planning Commission lacked the statutory authority to grant the variances, and the City lacked a rational basis to grant the variances and CUP. Both sides moved for summary judgment, which the district court granted for the City and Yellow Tree. Tulien then appealed to this court. 5 DECISION Tulien appeals from the district court’s grant of summary judgment to the City and Yellow Tree, contending that the City’s decision to grant the variances and the CUP was unreasonable, arbitrary, and capricious, and that the district court erred in its interpretation of the MPA, Minnesota Statutes sections 462.354 and .357, subdivision 6 (2018). I. The City’s decisions to grant the variances were unreasonable, arbitrary, and capricious. Tulien contends that the City lacked a rational basis to grant the variances. The City and Yellow Tree respond that the City gave legally sufficient and factually supported reasons for granting the variances, so its decision had a reasonable basis. A zoning authority must have a reasonable basis for all zoning decisions. Honn v. City of Coon Rapids, 313 N.W.2d 409, 417 (Minn. 1981). We review the zoning authority’s decision independent of the findings and conclusions of the district court. Mendota Golf, LLP v. City of Mendota Heights, 708 N.W.2d 162, 180 (Minn. 2006). We will reverse the decision as unreasonable, arbitrary, and capricious if the articulated reasons for the decision were legally insufficient or factually unsupported. RDNT, LLC v. City of Bloomington , 861 N.W.2d 71, 75–76 (Minn. 2015). The party challengi ng the zoning decision bears the burden of proving it was legally insufficient or factually unsupported. Sagstetter v. City of St. Paul, 529 N.W.2d 488, 492 (Minn. App. 1995). After reviewing the record before the City and the City’s findings, we conclud e that the City acted unreasonably, arbitrarily, and capriciously when it granted the variances. The City approved the following five variances for the project: 6 1) Reduce the required number of loading/unloading parking spaces from one to zero. 2) Reduce the distance that balconies on the building must be set back from the rear yard property line from 15 feet to 10 feet. 3) Increase the percentage of the lot that the building is allowed to cover from 70 percent to 77.7 percent. 4) Reduce the distance that the building must be set back from the front yard property line along 26th Street West from 19.7 feet to one foot. 5) Reduce the distance that the building must be set back from the front yard property line along Blaisdell Avenue from 33.5 feet to one foot. The City was required to articulate findings under three factors to establish a reasonable basis to grant each variance, the first factor being that [p]ractical difficulties exist in complying with the ordinance because of circumstances unique to the property. The unique circumstances were not created by persons presently having an interest in the property and are not based on economic considerations alone. MCO § 525.500(1) (2011); see also Minn. Stat. § 462.357, subd. 6(2) (“‘Practical difficulties,’ . . . means . . . the plight of the landowner is due to circumstances unique to the property not created by the landowner.”). Tulien challenges only the City’s findings for the practical difficulty factor, so we confine our review to those findings. Our case law instructs that a practical difficulty finding requires multiple components. The “circumstances unique to the property” must be features or characteristics of the property or its surroundings, not the operation of the zoning code on the property; also, the finding must explain how those circumstances make it difficult for the property owner to conform their proposed use to the zoning requirement from which they seek to vary. See Nolan v. City of Eden Prairie, 610 N.W.2d 697, 702 (Minn. App. 7 2000), review denied (Minn. July 25, 2000) (holding that the city made a legally sufficient finding of practical difficulties when it explained that the property’s location at the end of a cul-de-sac, as well as the stand of trees and significant grade change of 44 feet on the property, limited the owner’s ability to create house pads and lot lines in compliance with the zoning code); State ex rel. Neighbors for E. Bank Livability v. City of Minneapolis , 915 N.W.2d 505, 517–18 (Minn. App. 2018), review denied (Minn. Aug. 7, 2018) (holding similarly when the city explained that permanent structures on either side of a proposed apartment building physically limited the lot size and ability to build horizontally on the property in compliance with the zoning code); Sagstetter 529 N.W.2d at 492 (holding similarly when the city found that “soil conditions and a sewer main prohibited excavation that would allow [the project] to comply with the 30 foot height limitation in the ordinance”). Relatedly, we have upheld a local government’s denial of a variance when it finds no unique characteristics or features of the property or surrounding area. See, e.g., Cont’l Prop. Grp., LLC v. City of Wayzata , No. A15-1550, 2016 WL 1551693, at *5 (Minn. App. Apr. 18, 2016) (affirmi ng a city’s finding of no unique circumstances when the property shared the same physical characteristics as similar properties in the immediate area). The circumstance need not be limited to the physical characteristics or features of the property itself, but may include those of the surrounding area so long as they cause the property owner practical difficulties complying with the zoning code. See Neighbors for E. Bank Livability, 915 N.W.2d at 517–18. With this law in mind, we now turn to the City’s findings for each variance. 8 A. The City’s practical difficulty findings for the minimum loading variance and the minimum rear yard setback variance were lega lly insufficient. For the minimum loading variance and the minimum rear yard setback variance, the City found that “a practical difficulty exists due to the current zoning code, which makes it difficult to create a contemporary apartment building on this site which would meet all of those standards.” One of the planning commissioners reinforced this finding during the hearing, saying, As it relates to practical difficulty, these [variances] relate to the intensity of development, location of the building. There are practical difficulties associated with the current zoning code. I think whether it’s the R5 or OR2 district, it’s difficult to fit a contemporary building on a site like this or elsewhere in the city and meet all of those [zoning] standards. We read this finding to say that the zoning code is the unique circumstance of the property that made it difficult for Yellow Tree to build its project on the property or elsewhere in the city. The City’s finding is legally insufficient because it does no t point to a circumstance unique to the property. The fact that “the current zoning code . . . makes it difficult to create a contemporary apartment building on this site” is not a circumstance unique to the property. The City found that Yellow Tree had practical difficulties building its project in compliance with the zoning code because the zoning code made it difficult to build the project at the site. Under this circular reasoning, all requests for variances from the zoning code automatically have a practical difficulty because the zoning code prevents the proposed use. It destroys the requirement that a practical difficulty be due to a 9 circumstance unique to the property. The circumstance unique to the property must be a feature or characteristic which—by its existence—causes the property owner difficulty conforming their proposed use to the zoning code. Here, the zoning code applied to the project site did not cause Yellow Tree’s difficulty conforming the project to the zoning code. Beyond the illogical nature of this finding, we find no caselaw suggesting that the zoning code can be a circumstance unique to the property. As explained above, our caselaw confirms that the circumstance must be some feature or characteristic of the property or surrounding area, not the generally applicable zoning code. We are not convinced by the City’s argument that this finding actually describes the unique circumstance that the building site could not meet all the standards in the zoning code. The language of the finding clearly describes the zoning code as the circumstance unique to the property, not the building site’s inability to comply with the code. The City points to nothing in the record that supports its alternative interpretation of this language. Even if we accepted the City’s interpretation, the finding would still fail to point to any feature or characteristic of the property or surrounding area, or explain how it creates a practical difficulty. This finding fails to identify any features or characteristics of the property or surrounding area that caused Yellow Tree practical difficulties in building its project with one loading space and a 15-foot rear yard setback as required by the zoning code. The finding is legally insufficient. This was the City’s sole practical difficulty finding for these variances, so the City’s decisions to grant these variances were unreasonable, arbitrary, and capricious. 10 B. The City’s practical difficulty finding for the maximum lot coverage variance was legally insufficient. The City made two practical difficulty findings for the variance to increase the maximum lot coverage. The first was the legally insufficient finding discussed above, which we hold to be insufficient for this variance as well. The second finding was that practical difficulties exist for Yellow Tree complying with the lot coverage requirement because “[c]ity policies that call for active ground floor uses and the amount of parking and circulation space needed to meet the minimum parking requirement . . . result[] in a building footprint that is larger than what is allowed in the OR2 zoning district.” The zoning code governs active ground floor uses and the design of parking areas. See, e.g., MCO § 535.60 (2009) (Active Ground Floor Functions); MC O ch. 541 (2000–2019) (Off- Street Parking and Loading). The finding explains that specific requirements of the zoning code forced Yellow Tree to design a project with a building footprint larger than that allowed in the OR2 zoning district. We again reject the City’s argument that this finding actually refers to the building site being unable to meet the zoning requirements. As with the previous finding, this one focuses entirely on difficulties created by the zoning code that prevent Yellow Tree from building its project as designed, which are not circumstances unique to the property. This finding is legally insufficient because it fails to establish a circumstance unique to the property. The City failed to provide any legally sufficient reasons to grant this variance, so its decision was unreasonable, arbitrary, and capricious. 11 C. The City’s practical difficulty findings for the front yard setback variances were legally insufficient. The City made the same findings for both variances to reduce the front yard setbacks. The first was the legally insufficient finding discussed in II.A., which we hold to be insufficient for these variances as well. The City also found that practical difficulties exist in complying with the front yard setback requirement due to the unique circumstance of having two front yards, one along Blaisdell Avenue and one along 26th Street. The residential structure to the north, which sets the established front yard requirement along Blaisdell, is uniquely situated with a setback that greatly exceeds the district minimum setback. The minimum front yard setback requirement in the OR2 zoning district is 15 feet. However, based on the established placement of adjacent buildings, the site is subject to an increased front yard setback of 19.7 feet along 26th Street and 33.5 feet along Blaisdell Avenue. . . . The presence of two front yards, each with established setbacks that exceed the district minimum, limits the amount of buildable area on site and creates a practical difficulty. Though the finding identifies a unique circumstance of two front yards, it still fails because this circumstance does not create practical difficulties for Yellow Tree to comply with the front yard setbacks. The finding says that Yellow Tree’s practical difficulty complying with the front yard setbacks arises because the front yard setbacks on the property exceed the 15 feet normally required in the OR2 zoning district, excessive ly limiting the area on which Yellow Tree is allowed to build. The logical solution would be to grant variances reducing the setbacks to the 15 feet normally required in an OR2 district, which would eliminate the excessive setbacks and increase the buildable area. But the variances here reduce both setbacks to one foot, suggesting that Yellow Tree would still encounter a difficulty even if 12 the property were zoned for the normal 15-foot setbacks. The variances greatly exceeded the difficulty found by the City, meaning this finding does not legally support those variances. In addition to the disconnection between the finding and variances, the City’s finding is legally insufficient because it points to the zoning code as the source of the practical difficulty. The two front yards and surrounding buildings mentioned in the finding may be unique circumstances, but they do not themselves reduce the buildable area. Instead, the zoning code increases the front yard setbacks because of those circumstances, which reduces the buildable area. The finding says that the front yard setbacks established by the zoning code reduce the buildable area, which creates Yellow Tree’s practical difficulty complying its project with the front yard setbacks established by the zoning code. It is the zoning setbacks themselves that constrain the buildable area. The zoning code is not a circumstance unique to the property, and the City cannot point to the operation of the zoning code as the source of Yellow Tree’s practical difficu lty justifying the variance from the zoning code. This finding is legally insufficient because it fails to identify a practical difficulty due to circumstances unique to the property. The City failed to provide any legally sufficient reason to grant these variances, so its decisions were unreasonable, arbitrary, and capricious. II. The City’s decision to grant the CUP was unreasonable, arbitrary, and capricious. Tulien contends that the City lacked a reasonable basis for granting the CUP applications because the record does not provide sufficient factual support. We review the 13 City’s grant of the CUP applications under the same standards as the variances. See Schwardt v. C nty. of Watonwan, 656 N.W.2d 383, 386 (Minn. 2003). The Planning Commission must make findings under six factors before granting a CUP. MCO § 525.340 (2019); Neighbors for E. Bank Livability, 915 N.W.2d at 510 n.12. The City need not make each finding explicit, so long as we can determine that the “order granting a CUP . . . demonstrate[s] the board’s conclusion that the proposal has satisfied each of the zoning ordinances conditions for approval.” Schwardt , 656 N.W.2d at 389. We conclude that, of the six required factors, the City failed to consider possible injuries to the use and enjoyment of nearby property, so it could not have reached any conclusion on that factor . MCO § 525.340(2) (“The conditional use will not be injurious to the use and enjoyment of other property in the vicinity . . . .”). We examine the City’s order and the record for any indication that the City considered the possible injury to the use and enjoyment of nearby property. See Schwardt , 656 N.W.2d at 389. Despite evidence suggesting that injuries were possible, this record is devoid of any indication that the City considered and rejected those possible injuries. The City’s resolution and the minutes from the hearings fail to discuss or even hint at this finding. If the record contained no evidence that the CUP risked injuring the use and enjoyment of surrounding property, the City would not need to discuss those nonexistent injuries, and we could infer that their grant was legally sufficient. But here, the Planni ng Commission and City Council were aware that the increased building height permitted by the CUP might impact the use and enjoyment of surrounding property. Two residents submitted comments that the building’s height would cause it to shadow their proper ty 14 throughout the year, and the height of the building’s party deck would injure their private use of their backyards by allowing people on the deck to look down into their backyards . Yellow Tree’s shadow study shows that the project will shadow neighbori ng houses throughout the year. The CPED highlighted the shadow study in its report to the Planning Commission. Also, Yellow Tree’s project proposal shows that the party deck on the upper floors faces the backyards of the neighboring houses, allowing views into those backyards. In the face of this evidence, the City needed to consider and reject those possible injuries before it could reach any conclusion on this factor. The record fails to show that the City gave any consideration to those injuries or the finding generally, so we can only conclude that the City failed to give the consideration legally required. The City’s failure to consider this required factor renders its reasons for granting the CUP legally insufficient, and its decision unreasonable, arbitrary, and capricious. III. Statutory Preemption Argument Tulien also argues that the MPA, Minnesota Statutes sections 462.354 and .357, subdivision 6, preempts the City’s process for approving variances through the Planning Commission. The district court held otherwise in its summary judgment. On appeal, Tulien indicates that he was injured by this variance approval process because he “has a right to have decisions affecting him made by the correct body as provided by the MPA,” and the City violated that right with its illegal process. Tulien stops at the step of asking us to interpret the statute differently than the district court, but he does not explain what relief he could experience through this different interpretation. To the extent Tulien make s 15 this argument in support of us reversing the variances and CUP, we need not address it because we reverse on other grounds. IV. Conclusion The City failed to find any legally sufficient practical difficulties to support its decisions to grant the variances and failed to consider whether the CUP would impact the use and enjoyment of surrounding property as required by the MCO and MPA. We reverse the variances and CUP as unreasonable, arbitrary, and capricious. Reversed. PLANNING COMMISSION STAFF REPORT Tuesday, March 2, 2021 Subject City Council Action Update Section ADMINISTRATIVE PRESENTATIONS Item No: E.2. Prepared By Jean Steckling, Senior Admin. Support Specialist File No:  ATTACHMENTS: City Council Action Update City Council Action Update MONDAY, FEBRUARY 8, 2021 Resolution to adopt setting a public hearing for March 22, 2021 establishing a TIF District - Approved MONDAY, FEBRUARY 22, 2021 Commission Interviews (Work Session) Consider a Request for Variances, Including Exceeding the 1,000 Square-Foot, Detached Accessary Structure Size Limit, to Construct a Detached Garage and Add a Bathroom to an Existing Detached Structure on a Property Located at 10151 Great Plains Boulevard - Approved Minutes for these meetings can be viewed and downloaded from the city’s website at www.ci.chanhassen.mn.us, and click on “Agendas and Minutes” from the left-side links. g:\plan\forms\development forms\city council action update.docx