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06-21-2022CHANHASSEN PLANNING COMMISSION REGULAR MEETING MINUTES JUNE 21, 2022 CALL TO ORDER: Chairman von Oven called the meeting to order at 7:00 p.m. MEMBERS PRESENT: Eric Noyes, Mark von Oven, Erik Johnson, Perry Schwartz, Ryan Soller, Edward Goff, and Kelsey Alto. MEMBERS ABSENT: None. STAFF PRESENT: Kate Aanenson, Community Development Director; MacKenzie Young- Walters, Associate Planner; Bob Generous, Senior Planner; Erik Henricksen, Project Engineer. PUBLIC PRESENT: Zach Gleason Hackamore Brewing Co. Mike Werth John Goodman 915 Pleasant View Road Charlie & Gary Hansen Hansen HomeTech Stefan Szalkiewicz 511 Del Rio Drive Jeanne Waslosky 517 Laredo Lane Charles Littfin 7609 Laredo Drive Dave Buckholz 7541 Chippewa Trail Christina Ahola 7496 Saratoga Derek Mellot 7501 Chippewa Trail Thomas Wilmer 517 Del Rio Drive Keely Unrue 7501 Chippewa Trail Gordy Nagel 514 Del Rio Drive PUBLIC HEARING: HACKAMORE BREWING CODE AMENDMENT REQUEST Associate Planner Young-Walters gave a presentation on the item, noting there are two ways a Code amendment can happen. First is that staff of City Council observe something they would like to change and second is when a resident or business requests the City change the Code. The Hackamore Brewing Company has requested the City amend the industrial office park district. The applicant is proposing to put a brewery and taproom at Lake Drive East and Dell Road. Currently, City Code allows breweries and taprooms in the area but restaurants are not permitted and this would prevent them from having a commercial kitchen. One reason the City does not allow restaurants in the industrial office park district is because they do not want commercial uses there; however they recognize that older industrial buildings are not always as desirable for modern industrial uses and have become more flexible with what is allowed in those districts. Staff does not believe there is a significant impact in allowing an accessory kitchen versus what is currently on the site and do not believe this would negatively impact the district. In response to this request, staff is proposing to allow commercial kitchens in conjunction with taprooms and cocktail rooms as accessory uses in the Industrial Office Park district. Proposed conditions include the businesses would not be eligible for on-sale intoxicating liquor licenses (hard liquor Planning Commission Minutes – June 21, 2022 2 or beer not brewed on-site), must be accessory to a taproom or cocktail room, and the brewery must be licensed as a brew pub. Mr. Young-Walters has not received public comment on the item. Chairman von Oven asked if it is subjective in someone saying they are a brewery first and a restaurant second. Mr. Young-Walters replied staff would look at the floor plan being submitted and if they saw 500 square feet dedicated to production and 2,000 square feet dedicated to the commercial kitchen, there would be a conversation noting the kitchen is not accessory. Regarding these plans it was clearly a brewery first and restaurant second. Commissioner Alto asked why the City wants to keep commercial industrial second. Mr. Young-Walters replied that looking at how the City has guided its land uses, it has made very deliberate choices to concentrate commercial in the City’s downtown area and some secondary commercial corridors for neighborhood support retail. Avienda is the one deviation from that. The goal is to have a vibrant downtown and keep those businesses healthy. He noted there are parking standards designed for industrial uses, and commercial uses tend to have higher turnover and traffic volumes, which the streets in those areas are not designed for. He also noted the benefits to the City’s tax and employment base to preventing the displacement of industrial users. Commissioner Goff has been to other establishments that use industrial spaces and parking becomes an issue and there is a lot of traffic. How would the City prevent having two or three of these next to each other? Mr. Young-Walters noted staff told the brewery in the beginning they would need to demonstrate that they can meet parking, which was shown. If another brewery went into the next building, they would not be able to demonstrate the parking standards and that is a protection. Zac Gleason, founder of Hackamore Brewing Company, noted they are looking to be a bit different than an everyday brewery by being more upscale and elevated. He is working with an award-winning builder and they will focus on upscale amenities including golf simulators, a stage for live music, a pro shop with apparel, and he would like food as it will keep people in their seats for a longer time. He would like to have a small, focused menu such as a burger, chicken wings, and french fries. Chairman von Oven opened the public hearing. There were no public comments. Chairman von Oven closed the public hearing. Commissioner Alto moved, Commissioner Noyes seconded that the Planning Commission recommends the City Council adopt the attached ordinance amending Chapter 20 of the City Code concerning permitted accessory uses in the Industrial Office Park District (IOP). All voted in favor and the motion carried unanimously with a vote of 7 to 0. Planning Commission Minutes – June 21, 2022 3 PUBLIC HEARING: 915 PLEASANT VIEW ROAD REPLAT Senior Planner Bob Generous gave the staff report noting the item is a replat and while it is considered a subdivision there are no additional lots being created; rather there is one lot being created out of a lot and an outlot. The property is zoned single-family residential and the applicant is trying to combine the current lot with Outlot A in the Vinewood Addition. As a condition of approval and with the final plat, the applicant will be vacating an easement and dedicating a new easement for drainage and utilities. Staff recommends approval subject to the conditions of approval. Mr. Generous has not received public comments on the item. Mike Werth is representing the homeowner and said currently the house is over the setback. He showed plans on screen and explained the design choice. John Goodman stated everything is already inside of his fence and he is trying to combine them because he would like to build a small garden shed. Because they cannot put the shed on an outlot, it must be 22 feet inside the property which would result in taking down a large oak tree and a large maple tree. Chairman von Oven opened the public hearing. There were no public comments. Chairman von Oven closed the public hearing. Commissioner Alto said to save the trees. Commissioner Noyes thinks it makes perfect sense. Commissioner Noyes moved, Commissioner Goff seconded that the Chanhassen Planning Commission recommends approval of the replat for Goodman Homestead subject to the conditions of approval and adopts the attached Findings of Fact and Decision. All voted in favor and the motion carried unanimously with a vote of 7 to 0. PUBLIC HEARING: SANTA VERA RESIDENTIAL DEVELOPMENT CONCEPT PUD AMENDMENT Senior Planner Bob Generous gave the staff report, stating this is a 2022 development project and they currently have property zoned Planned Unit Development (PUD) and permits an additional 30-unit apartment building. The concept plan review allows the applicant to come in and put different proposals forward without doing the expensive engineering work and then find out the proposal would or would not go forward. It allows them to shake out the project and see what is acceptable to the City and community before coming up with an actual development plan. Staff review provided an outline of the issues they would need to address if they were to move forward and also received comments from the neighborhood. Mr. Generous said the property is zoned PUD-Residential and would permit an additional 30 apartment units. He noted the existing site has an 18-unit apartment building and the concept plan proposes 30-35 additional apartment units in a separate building, five single-family homes, six townhomes, and an additional eight units added to the existing 18 units on the site. Planning Commission Minutes – June 21, 2022 4 Project Engineer Erik Henricksen shared about drainage and grading, noting stormwater runoff generally drains from west to east and must be maintained. Currently, there are no existing stormwater infrastructures or BMPs on the site as in the 1970’s when the site was developed there were no robust regulations. Based on the concept plans it would appear the applicant would need to meet requirements for water quality, extraction, volume control, and rate control. He spoke about street access, pedestrian routes, and a traffic impact study requirement. Mr. Generous shared about building permit requirements specifically addressing the existing building. Should the applicant add a third-story to the existing building, they would need to bring the entire building up to compliance with current Building Code, Fire Code, and parking standard requirements. Mr. Generous received an email which he has distributed from Amy Anderson whose concerns were safety regarding the traffic and pedestrian circulation on the site, as well as the size and scope of the development on the site, and hardcover. Mr. Generous received a phone call from a gentleman who was concerned and opposed to the project due to the high density and tree removal. He also received a response from a woman concerned about traffic and pedestrian safety concerns due to the traffic from the school and ball fields, as well as being opposed to the high density and tree removal. Staff recommends receiving feedback from the public. Commissioner Schwartz asked if the City requires that developers include any green building components in construction. Mr. Generous noted there are no specific requirements but they can encourage that. It has not been a policy decision from City Council. Commissioner Noyes noted the five single-family homes have detached garages due to the narrow lot sizes, and asked if there is a standard for that within the City. Mr. Generous replied it is not a standard and City ordinance requires a minimum two-car garage for every dwelling unit but does not specify attached or detached. Commissioner Schwartz asked if staff shares any concerns of the resident feedback received regarding density of the site. Mr. Generous stated consistency with the Comprehensive Plan is one of the issues. As proposed, this would be at 18.25 units per acre and the Comprehensive Plan says a maximum of 16 units per acre. Traffic is also a concern from staff and they want it to be studied. Regarding tree removal, staff is aware that it happens and they also want to be sure hardcover and stormwater is adequately addressed. Commissioner Schwartz asked why the developer would propose a development in excess of the City’s density requirements. Mr. Generous replied to see if it would be acceptable to the City. Charlie Hansen approached the podium and noted his grandfather purchased the land around this area in 1963 and many of the homes in the neighborhood were a result of that development. He Planning Commission Minutes – June 21, 2022 5 noted the original proposal was to add another apartment building, pave much of it, and add garages which would cut down many trees and not make it one with the neighborhood. Instead, they would like to do a mixed development to allow it to blend more with the neighborhood and he clarified they would not be cutting down the trees. Mr. Hansen clarified part of the reason for the detached garages is to be able to move them a bit to save tree cover. Gary Hansen shared history noting his father tried to do this in 1978, 2004, 2014, and now they are here in 2022. Previously the PUD limited it to 24 units and now it sounds like the Met Council wants more density in Chanhassen which is why the Hansens are looking at what the maximum is. He noted it is a concept and they are not trying to shoehorn things in. The trees lining the elementary school will stay and the rest is mostly open field and gravel. He noted they are looking at changing the PUD for a little more density and they would like to soften the entrance with single-family and town homes before the apartment building. Commissioner Noyes noted staff brought up many good points in the report and asked if the Hansens have thought about stormwater management, erosion, wetland issues, updating the sewer, bringing the current apartment building up to date and whether that is already included in their plan. Charlie Hansen replied they have had a lot of great suggestions from staff, noting green building practices are important to them, including underground cisterns to reserve water on site and reusing it in irrigation. They are looking at semi-permeable surfaces so there is less runoff, the possibility of green roofs, and many other aspects. Gary Hansen spoke about traffic control including a one-way road as they do not want extra people going toward the school during drop-off and pick-up times. Charlie Hansen stated they are asking for mixed-use as the site is currently zoned for the existing apartment building. He noted they are spending more to put in underground parking so it blends with the neighborhood. He spoke about updates to the current apartment building on site which is already happening. Chairman von Oven opened the public hearing. Stefan Szalkiewicz lives four houses across the street from the development and noted change is inevitable and the applicant has the right to try to do what they want with the property. His concern is traffic and he shared he is getting married soon and hopes to have kids. He is a little nervous to have kids playing in the road, especially because Del Rio does not have a sidewalk. Jeanne Waslosky lives in a cul-de-sac and her backyard overlooks the existing apartments. She noted it just seems like a lot to put in there, and there would be more traffic. She would also be concerned about how long it would take, as well as the construction noise. Charles Littfin lives across the street from the elementary school and asked if any of the Commissioners live on Laredo Drive or Santa Vera. He stated right now they have sports happening and Santa Vera is down to one-lane because police do not monitor the no parking signs. He asked if they are planning a traffic study, noting hopefully it will be while the school is open and not during the summer. This is a huge concern of Mr. Littfin’s and he stated they have Planning Commission Minutes – June 21, 2022 6 tried 3-4 times to build on that property and now they are going after it again because the Met Council says they can. He does not think what the Met Council is doing is right and that they can say what the City has the right do to. This is the City of Chanhassen and they should do what they want to do. Mr. Littfin noted one thing Mr. Generous spoke of is false and when they did the Laredo Drive project about 10 years ago, everyone that lived on Laredo Drive and the cul-de- sacs forked over $6,000 for the project and that property there did not pay one red cent even though they have a driveway coming out onto Laredo Drive. This is because they said their main driveway was on Santa Vera. He said the wetlands that were redone going down to Kerber Pond that the neighborhood paid for and that the Hansens will utilize for their project was not financed at all by them. He noted there are deer living in the woods right now and maybe they need to get the DNR involved and see what they say about the wildlife and green space in this town. Mr. Littfin noted he cannot do anything on the property because of the ground cover and asked how much ground cover will be left after the development. He noted the City is all ground cover and there is no greenspace left in this town. Regarding the parking lot that was spoken of that is an eyesore, they were reimbursed because the City of Chanhassen and the developer used that piece of property to stage all their equipment when they did that whole road project. It is the way it is because of that road project. Now they have two accesses onto Laredo Drive, curb-and-gutter, and driveways going into their properties that they never paid anything for. He stated that was a huge concern for the people that paid for this road project. Obviously, this is a town with money and it is all about money, not about what the people want but rather about what they want as builders. Mr. Littfin said they are willing to kick everyone out of their apartment complex to put a third story on which is all about money. He asked the Commissioners when they pass this on to the City Council, to think about what they want to do and what is good for this town. He said the Fire Department is running 24/7 and he met with the Chief who said they have more calls than ever. Mr. Littfin asked what is that traffic going to do on Laredo Drive, noting Santa Vera is the only other road to get from Kerber to this side of town without going through a stop light. He noted again that the Commissioners need to go on Santa Vera some night when there are sports; it is down to one lane, and he cannot believe it has never been brought up in any safety aspects of the town, especially the Fire Department. He thanked the Commissioners for listening and said he would see them at the City Council meetings. Dave Buckholz lives on a corner lot on Santa Vera and Chippewa Trail and most of his concerns have been addressed. First, a three-story apartment building will look right into his son and daughter’s window and basically their entire back yard will be visible from the third floor of the building. Second, traffic is an issue and their kids are not allowed to play in the front yard because many people do not stop at the stop sign. Finally, based on the drawings, he does not think the current ownership could maintain it. The property has not been maintained over the last couple of years; things such as graffiti on the rocks has been there since he moved in 10 years ago. Christina Ahola, 7496 Saratoga, is representing her parents, noting the family moved here in 1979. Earlier in the spring Ms. Ahola and her mother were walking through the park and noted it is an eyesore and they need better housing for the community and were very excited to see the property development. They fully support this being built and adding population to Chanhassen. She noted there are issues to be addressed such as parking, street traffic on Santa Vera which is absolutely terrible during sporting events, drain water issues, and the addition of 35 homes which adds two cars each and whether people will be parking on Santa Vera and Laredo. Generally Planning Commission Minutes – June 21, 2022 7 speaking, the family is very excited for the ugly forest to go away and to have more people in Chanhassen. Derek Mellot shared concerns and does not know if this will be low-income housing, or if there will be resale of certain property. He calculated about 73 units including the existing 18 apartments in an area that looks like it is fit for maybe 4 houses and when factoring in the increase in cars he thinks they are getting into really high density. His concern is with traffic, number of bodies, and who is coming in to rent those apartments and whether they are dealing with an enhanced chance of crime. He noted it would be really nice to have that area cleaned up and updated. Mr. Mellot shares a bit of skepticism regarding the current level of upkeep as the previous fall he was walking daily and there was a free stroller on the front lawn for over a week and then it ended up on his road. He ended up taking the stroller to his garbage can to get rid of it. If they will invest all of this time and money into making something beautiful he would hope it would be kept up to prevent spillover of garbage into neighboring areas. Mr. Mellot is still concerned, would like to know more, and would like the Commissioners to act as though they live next door to this development. Thomas Wilmer lives across the street and asked if the applicant has submitted any variances for the project. He has a general list of eight that the applicant will have to deal with including the height of three levels, distances to streets from the buildings, and building separation including fire safety. He spoke about hardscape percentage of easily 60-70%, water runoff, and the large amount of water flowing into the drain on the east side of the property. Mr. Wilmer noted setback issues with the school, path, and parkway and said foul balls will hit the back of the apartment complex. Regarding emergency vehicle access, is the through road wide enough for two emergency vehicles to pass through? He asked about sewer and where all the water will go, noting three drains that feed the area with one of them holding 70% of the drainage on the east side. Mr. Wilmer asked whether they will see an architectural or scaled drawing with actual dimensions of this before going to the next step. Other questions include if the underground garage will be dug in with very heavy equipment or will it be under-unit parking creating a 40 foot height. He also shared concerns about the number of vehicles, street parking, and snow removal. Mr. Wilmer asked if the units will be at the same setback as his home which is 35-odd feet from the road. Regarding the existing apartment complex, the parking is barely sufficient now and in adding another level where will those additional vehicles go? He spoke about the trees and tree removal. Mr. Wilmer does not mind the applicant upgrading the apartment complex and would prefer a couple of nice town homes, double bungalows, and some single- family homes. Keely Unrue, 7501 Chippewa Trail, is new to the neighborhood and has a five year old son about to start Kindergarten at the elementary school. She stated Chanhassen seems like a safe and walkable community. Her only comment is that this does not feel very safe and asks the applicant to reevaluate and go back to the drawing board. She is excited to see what they can come up with because she thinks they can do great things. Gordy Nagel, 514 Del Rio Drive, complimented Doug Hansen who built his house and did a marvelous job. When he saw the plans for the new development his heart went out because it Planning Commission Minutes – June 21, 2022 8 does not fit the neighborhood; it is too compact, and he understands the applicant is trying to recoup some of the value of the land. However, he vehemently opposes this plan and suggests they go back and sharpen their pencils. Chairman von Oven closed the public hearing. Community Development Director Aanenson clarified the PUD process, noting every project starts with a concept and the purpose here is to hear concerns which will all be brought to the City Council and that the public hearing comments will be advanced. The purpose of the PUD is for the applicant to get their ideas out there and she encouraged everyone to go to the website and download the staff report as in that document they addressed all the things that need to be done including a traffic study, accommodating additional stormwater runoff, and noted all of those things are part of this plan. In order for the plan to be advanced it must meet all those criteria. Both parties in good faith give a recommendation to where they see this going with the intent to be fair to both parties. There are no final drawings with all the setbacks but looking at the current PUD, there are setbacks and standards in there. This is the first attempt to air the concept in the public and see where it goes. It will go to the City Council with minutes attached for another presentation and the staff report. From there the developer will make a decision on how they want to proceed. Commissioner Alto asked if there are resources for citizens to address the current safety concerns such as parking, stop signs, and traffic. Ms. Aanenson replied in the affirmative, noting those are things that can be reported back to the Sherriff’s Office, although it is best if it comes from the residents. She stated they do have a Traffic Safety Committee, and that is what they do. Commissioner Schwartz learned a long time ago that there is one chance to make a first impression and his sense is that the developer is premature in coming with a concept plan tonight. There are so many issues and concerns with aesthetics, density, and safety. He does not know whether they did any field testing or received comments from neighbors impacted by the development that could have been incorporated into the concept plan. He has great concerns about the project and noted it does not fit with the neighborhood and he visited it several times this week. Commissioner Goff noted in the staff packet there are three pages and 34 recommendations of things like a traffic study that needs to be done and almost everything they have heard tonight needs to be ironed out. As staff noted, they will be seeing this again. With so many constraints on the project, if the Commissioners said, yes, it is a very tight box the developer must work in. Most of the concerns he sees such as addressing the Comprehensive Plan inconsistencies, tree preservation, recommended use of a private street, traffic impact study, and so on, are addressed and written into the staff recommendation which has to happen before it moves forward. Commissioner Goff said this group will see it again and his biggest issue is the three-story apartment building and line-of-sight for those around it. Commissioner Noyes thinks it is a pretty simple discussion. In looking at the Comprehensive Plan, it allows for a density of 61 units right now and the applicant has basically told the City this Planning Commission Minutes – June 21, 2022 9 does not work financially unless they have 70 or more. The purpose of the discussion tonight is to move that number and he can understand why all the details are not worked out because they do not know if they have that density worked out. The rest of the process will all get fleshed out in time if they get to that point. To Commissioner Noyes, it is about whether the City thinks changing the density to allow for the 15% variance is a good thing. The Met Council has come up and in order to get to that it must be deemed as affordable housing. It is a bit of a dichotomy because they are trying to maximize the amount of revenue from the project to help pay for all the huge infrastructure costs up front such as stormwater, wetlands, sewers, or updating the apartments which is a huge investment. The question is whether the Commission thinks approving this so the density can go to 70 is warranted. Commissioner Johnson agrees with Commissioners Goff and Noyes and heard the area could use a facelift; there are so many layers of rules and regulations that have to happen and what is being presented is very conceptual. He noted that it’s likely not what will end up being built because the developer must check all the City boxes through the approval process. He agrees with increasing the density if that is what needs to happen to make it work financially. Commissioner Soller said it seems clear that many people think the property should be redeveloped and he tends to agree. He also believes the owners should be able to redevelop the property within the confines of what is acceptable to the community and City. Ideally what happens there should also fit the neighborhood. He noted it is already zoned high-density although he thinks it is strange to be zoned that way as it is between parks, a school, and single- family neighborhoods. Commissioner Soller stated the developer already has permissibility to do so much of this project already. He is not sure this is the right project or the right concept, but the process is there so everyone can understand the right way to redevelop this property. Alto’s gut reaction in joining the Commission was to not like high-density. She has learned over the last year that in the world they live in, it is the new rule of the game in development; it is small lots, maximizing the dollar, and she thinks having a developer that lives in the neighborhood and actually cares about the community is important. If they are not able to make this work, she thinks they will sell the land and a developer that does not live in Chanhassen will come in and do the exact same thing without listening to the neighborhood concerns the way this developer is willing to. She does not think the single-family homes makes sense. In looking at the 2040 Comprehensive Plan and what the City wants for the downtown in making it walkable and bringing in additional residents, Commissioner Alto thinks this makes sense, it is what it is zoned for, and it is what will happen eventually. Finding a way to make it work now with a local developer is important and she thinks they should take the next step to try and make that work. Commissioner Schwartz asked the Commissioners who want to move forward, does that mean they are in agreement to increase the density. Commissioner Soller’s vote to move forward does not mean he is in favor of increasing the density, rather it is to learn more about what this would actually materialize to be. He noted the City is in the driver’s seat, there are many constraints to moving forward, and he would vote yes to more fact finding and learning more about how they can make it work. Planning Commission Minutes – June 21, 2022 10 Chairman von Oven thanked the public for coming tonight and sharing. Something that stood out for him is the comment asking the Commissioners to pretend that they live across the street and he believes that is their job. He also believes it is their job to pretend they are the applicant to be able to see both sides of the issue. If he saw the picture of the concept plan it would scare him and he can see why neighbors are a bit terrified. However, if he puts himself in the shoes of the developer, a recommendation by this body and the City Council that they are good with this direction means to go ahead and start pouring money into it and then bring it back again to see if they approve the list of conditions. Tonight it boils down to the fact that this is slated for apartments and the Commission would be saying they are fine with townhouses and some single- family homes. He does not want to send the developer the message to go ahead and start writing checks against this concept and he struggles with the word “direction” in the proposed motion. He is leaning toward the side of not having City Council approve the direction in hopes that feedback from the neighborhood is taken for a new concept plan that will be smoother sailing and give them more confidence in writing out those checks for the actual PUD in the future. Commissioner Alto moved, Commissioner Soller seconded that the Chanhassen Planning Commission recommends City Council approve the direction and issues for the concept approval of PUD #2022-09, Hansen Homes 2022 Development Project as outlined in the staff report. All voted in favor and the motion carried with a vote of 4 (Alto, Johnson, Soller, Goff) to 3 (Chairman von Oven, Noyes, Schwartz). APPROVAL OF MINUTES: Commissioner Noyes noted the summary minutes of the Planning Commission meeting dated May 17, 2022 as presented. CITY COUNCIL ACTION UPDATE: Ms. Aanenson updated the Commission, noting the City Council approved all of the Code amendments, the final plat for Erhart Farm, and a drainage and utility easement. She stated they do not have a meeting on July 5 but do have a meeting on July 19. ADJOURNMENT: Commissioner Schwartz 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 9:00 p.m. Submitted by Kate Aanenson Community Development Director Prepared by Jean Steckling Senior Admin. Support Specialist