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08-16-2022CHANHASSEN PLANNING COMMISSION REGULAR MEETING MINUTES AUGUST 16, 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, Edward Goff, Kelsey Alto. MEMBERS ABSENT: Ryan Soller. STAFF PRESENT: Kate Aanenson, Community Development Director; MacKenzie Young- Walters, Associate Planner; Erik Henricksen, Project Engineer. PUBLIC PRESENT: Mark Nordland Level 7 development PUBLIC HEARINGS: 1. RSI MARINE, 10500 AND 10520 GREAT PLAINS BOULEVARD: CONSIDER A REQUEST FOR REZONING TO PLANNED UNIT DEVELOPMENT WITH SITE PLAN, VACATION, CONSOLIDATION OF LOTS, AND VARIANCES Associate Planner Young-Walters gave a presentation on the item, noting in March the Planning Commission saw a concept PUD for this development and the applicant is now back for formal rezoning and site plan approval. This will go before the City Council on September 12, 2022. The area is zoned fringe business district and the applicant is requesting to be rezoned to planned unit development (PUD), guided in the 2040 land use plan as mixed, and is proposed to be used as warehousing in the short-term and mixed-use commercial development in the long-term. Mr. Young-Walters spoke about zoning in the area and said staff believes rezoning to PUD will allow a reasonable use of the warehousing until sewer and potable water is available to the site. Staff also believes it will serve as a good transition between Highway 101 and 61and the planned high density residential to the east. The applicant is proposing two 22,600 square foot buildings and two 20,000 square foot boat storage buildings. They are providing a fire turn around and retaining walls along the north and east side. Mr. Young-Walters spoke about colors and architectural details noting they will get further material boards before bringing it to the City Council. The applicant asked for a variance to the vehicular area landscaping standards as typically the City Code would require five islands or peninsulas and 3,000 square feet of landscaping. However, due to the nature of the business involving pulling boat trailers into the buildings there is no way to make it work while allowing efficient vehicle movements within that area. Mr. Young-Walters noted a condition that when this is redeveloped and parking spaces are added, the area would need to meet the landscaping standards at that time. Staff is recommending approval of the variance. Planning Commission Minutes – August 16, 2022 2 Project Engineer Henricksen spoke about public utilities noting sanitary and potable water services are not yet available to the site and due to the nature of use, the applicant is only proposing to connect to the water system. They will need to extend the water main to the eastern property line through the right-of-way on site for fire suppression. The property will be specially assessed for the cost to connect to sanitary sewer once it is available. Mr. Henricksen spoke about access to the site noting the surrounding right-of-way is under Carver County jurisdiction and preliminary comments are concerns about the left turn movement into the site while headed eastbound because of a median at that location. There are no wetlands delineated on the site but one wetland is located south of the project and plans will need to show vegetation and wetland buffer markers. He spoke about a steep slope on the property which is not considered a bluff and noted the Watershed District regulates steep slopes within their borders and the applicant will need to confirm if regulations apply. Mr. Henricksen spoke about grading and stormwater. Mr. Young-Walters showed a compliance table noting the applicant meets or exceeds all requirements with the exception of parking standards. City Code gives staff flexibility on parking when the business model does not require the parking that Code requires. Given the operation, staff is comfortable with the five parking stalls. Commissioner Schwartz asked what happens when a bunch of people show up for their boats and park their cars. Mr. Young-Walters replied a customer never brings a boat to this site. Rather, RSI staff brings the boat to the site and winterizes it. Commissioner Schwartz noted most of the business parks in Chanhassen are pleasantly hidden from street view by landscaping and asked about having more tree barriers between the structures and the street. Mr. Young-Walters showed the landscape plans and noted the business parks are subject to the same buffer yard and landscape standards as this development. Staff has a condition that the applicant must add numerous overstory and understory trees and shrubs to align with those standards. Commissioner Noyes asked if the City is limiting themselves when the applicant wants to hook up sewer and water for businesses or offices. Mr. Young-Walters replied by giving the applicant the entitlement they have the right to continue this operation as long as they find it desirable. They will be required to hook up to the sewer and water and extend it so it will not become a choke to further developments. The applicant has indicated eventual interest in redeveloping. Chair von Oven asked about a fence. Mr. Young-Walters noted if the applicant chooses to add a future fence it will need to be located behind the landscape buffer, would be subject to the 8 foot height minimum, and would need a building permit. Planning Commission Minutes – August 16, 2022 3 Rob Schatzle, owner of RSI Marine, noted customers will not be allowed at the site and this site is basically just for storage. He is open to redevelopment in the future noting this is a short-term solution for watercraft storage for his business. Chairman von Oven opened the public hearing. Mike Spiess, 470 Flying Cloud Drive, noted any mixed-use concerns him and he asked if the Commissioners have thought about the traffic implications. He noted the roundabout gets backed up now and with the location of the driveway and mixed-use, it is already difficult to get out onto the road. In putting more houses and people down there, he asked about the implications of more traffic trying to get onto Flying Cloud or Highway 61 because it is a concern for Mr. Spiess even right now. Chairman von Oven closed the public hearing. Commissioner Schwartz asked about the future with mixed-use and who is responsible for the traffic surveys that may dictate modification to the road or an increase in lanes. Mr. Henricksen replied looking at the site as presented they must provide reasonable access to someone’s property. On this location the County installed the driveway access to the furthest southeast corner of the property. There was no viable way to introduce access off Trunk Highway 101. He noted this is a County road and it is their purview to comment and have requirements when there is development on their right-of-ways so they can request certain traffic studies. Mr. Young-Walters stated any change to the buildings that would modify them more than 10% would trigger a site plan review before the Planning Commission and at that point traffic studies would be conducted and the County would have another look to determine concerns on access. Commissioner Noyes moved, Commissioner Alto seconded that the Chanhassen Planning Commission recommends the City Council approve Planned Unit Development rezoning, site plan, vacation, consolidation of lots, and variance, subject to the conditions of approval, and adopt the Findings of Fact and Recommendation. All voted in favor and the motion carried unanimously with a vote of 6 to 0. 2. AVIENDA: CONSIDER A REQUEST TO AMEND PLANNED UNIT DEVELOPMENT-RC Community Development Director Kate Aanenson gave a report on the item noting this is the amended PUD and is a revision to a PUD approved in 2020. The developer is requesting changes after meeting with neighbors including 1. Adding 53 row homes between the townhomes and the apartments 2. Increasing the number of apartments from 250 to 417 3. Combine the 150-unit senior housing development to one 300-unit building at the southwest corner Planning Commission Minutes – August 16, 2022 4 4. The northerly senior housing is now a retail use in the plan 5. Shows potential locations for three to four additional drive-throughs, but does not seek approval at this time 6. The district plan may be fluid as future users are identified Ms. Aanenson stated the developer has agreed to work within the 768 units and if the senior housing is built on the southern location that could be up to five stories built into the hill. She spoke about history of the project going back to 2016 and showed the 2020 site plan on screen and contrasted it with the proposed revisions. Mr. Henricksen spoke about high-level traffic implications noting a traffic study was done in 2005 and updated in 2017. With the updated land use the developer’s engineer provided an updated trip generation analysis between the proposed and he stated overall they see a reduction in volume from the proposed uses. Ms. Aanenson contrasted the district master plan from the 2020 approved and the 2022 proposed plans on screen. She spoke about the projected housing demand within Chanhassen through 2040 at 6,560 housing demands which could be ownership (single-family or multi-family), senior (adult owned, adult rental, or service enriched), rental (affordable and market rate). She summarized proposed changes on screen speaking about the adjustments to housing, the addition of a car wash, and 25,000 square feet of entertainment for regional draw. The City has a relatively high level of discretion in making a PUD amendment as they are acting in their legislative authority and Ms. Aanenson noted they can add to or subtract some of the changes. She clarified site plan approval is required for all buildings, a public hearing is required with notice, and the site plan must comply with standards in the PUD-RC ordinance including height, setback, architecture, signage, parking, traffic, utilities, etcetera. If the use/plan meets all standards and is consistent with the PUD ordinance, the City has little discretion to deny at time of site plan approval. Mark Nordland, Level 7 development, gave a presentation and spoke about grading and infrastructure work that has already been done and showed aerial photos on screen of the work. Mass grading is about 95% complete and they are working on finalizing roads so they can order stormwater structures and noted there is a supply chain issue with those but they are on order. The goal is to have all utility work and roads in by fall. They are working with staff to get building permits to begin construction of the first homes on site this fall, as well. He noted originally this property was going to be a regional mall and in many areas of the country those are being redeveloped as retailing has changed. This is why the developer has been coming back with changes to get the right product and make it successful. He spoke about consolidating the senior living into one building and adding row homes at the west end to further step the density before the apartments. Mr. Nordland noted the biggest concerns from the neighborhood meeting are traffic, density, and height. He spoke about the clay soil in Chanhassen and infiltration rates, noting they are using a stormwater re-use system on site to collect a majority of rainwater into ponds and irrigation on site will utilize that water. Mr. Nordland spoke about the entertainment district and they are retaining the original vision, however the original plan showed a movie theater which may not be the right choice. Their designers looked at options for the plaza area Planning Commission Minutes – August 16, 2022 5 showing winter and summer activities including skating rink, Christmas market, ice castle/sculptures, Christmas tree sales, concerts, movie nights, pickleball, bocce ball, outdoor dining, shuffle board, etcetera. He showed renderings on screen of winter and summer activities on the plaza. The hope is that people will come to the destination, park, and go to 3-4 different places during each visit. Ms. Aanenson spoke about comments received which are included in the packet and on the website. The Comprehensive Plan says 30% of the gross acreage multiplied by 16 units an acre equals the maximum number of units of 768. The current PUD includes approval for 250 apartment units up to five stories and the amendment seeks approval of 417 units and will remain five stories. The City does not have any policies to require the developer to include affordable housing. Chairman von Oven opened the public hearing. Gary Haberman, 9036 Sunnyvale Drive, has a question about the electric power provider and if it has been designated or if there is a choice between Minnesota Valley Electric or Xcel Energy. Ms. Aanenson replied each has their own districts and whenever there is a project all jurisdictions that would have comment whether the State, the gas company, or electric company all get copies of this to see if they have any concerns. Mr. Henricksen clarified there are boundaries within Chanhassen dictating which service provider services those areas. Dave Howe, 400 Santa Fe Trail, lived in Highland Park which is a very busy business district and stated they closed Finn so people coming out of the shopping area cannot drive straight into the neighborhood and park. He brings this up because he is very concerned that people will find it very handy to drive across Mills Drive and park in the neighborhood which will create a nightmare for those living in that area. He stated it will be very difficult for those people if the City does not block Mills off. Mr. Howe stated there will be a lot of housing and cars on that west side and it will be so tempting to go across Mills Drive. He noted this is not Eden Prairie and there is a charm about Chanhassen. To put a giant apartment in there he feels that Eden Prairie is coming to Chanhassen which he does not want. He would like to keep the feel of Chanhassen cozier and he would like to see a tree-lined bike trail through the development to help it fit the vibe of Chanhassen. Jon Dimino, 9751 Meadowlark Lane, agrees that Chanhassen had a particular charm when he moved here 15 years ago. He noted adding five story apartments will change the whole nature of the area. He spoke about traffic and noted all the roof space and people concerned about CO2 and the environment but he has not heard anything about putting solar panels up to help supply power to the grid. Chanhassen should preserve the town for what it is, keep open spaces, and make sure they do not overburden it. A windmill could probably keep the whole thing off the grid. He thinks Chanhassen should be leaders and think about solar panels and windmills to be part of this development. Planning Commission Minutes – August 16, 2022 6 Jon Gilbert, 1641 Jeurissen Lane, agrees with all the points that were just made by neighbors. He has concerns about density, transportation, and the entertainment area. Regarding the entertainment area, the concept had nine buildings and now they have five buildings, less open area, they want to get rid of the theater, add 53 row homes, and move the apartment east. He spoke about density and noted it is not transparent to the public what the ratio is of 55+ independent living versus assisted living which goes back to the demands for senior housing. He spoke about pulling out the row houses and putting something more walkable, and creating a buffer other than more housing. Regarding the traffic study, he thinks they need a more comprehensive study to be done. Mr. Gilbert would have liked to have heard the questions before the public comment time. Zhexin Zhang, 1455 Bethesda Circle, asked if the 768 includes all townhomes, apartments, and row houses. Ms. Aanenson replied in the affirmative. She clarified each district calls out what uses can go in there. Mr. Zhang agrees with his neighbors that the density is a little over-the-top. Chairman von Oven closed the public hearing. Commissioner Schwartz asked the developer if there are any green building practices they will employ. Mr. Nordland replied in the affirmative stating they do not get the buildings LEED certified but are more focused on the design principles. Many of the design principles are pedestrian access, daylighting, bike racks, etcetera. Each individual project will be presented for site plan approval and can be vetted at that time for that level of detail. The approval today is for the PUD and concepts of what physically can go there but not the specifics on each building. Commissioner Schwartz asked if it is the City’s or developer’s responsibility to determine whether the builders adhere to environmentally sound building practices. Mr. Henricksen noted it is not in any of the City’s standard specifications. He does not believe there is a Code requirement and that staff’s responsibility is to be stewards of the Code and ensure that when developers come before them it is meeting all plans, Codes, ordinances, and standard specifications. Mr. Nordland spoke about water on the site and working with the Watershed District to mitigate that through rainwater reuses. Commissioner Noyes would like to talk about why the residential portion of the development is increasing so much and asked if it is demographics or lack of interest from retailers. Mr. Nordland shared in thinking about retail over the last few years, fewer square feet of retail is being constructed today as many more people are purchasing through e-commerce channels. Planning Commission Minutes – August 16, 2022 7 There is less demand for retail so they need to make it “special retail” and make it experiential so people want to go there. He shared they do not need as much brick-and-mortar space. In looking at the changes from 2020 plan to today there is less junior box-type space on the plan. He does not think it changes the number of bodies coming to the site and noted they are working with a grocer right now. He thinks about 5-6 acres out of 120 acres has changed since the last plan in adjusting retail to housing. Commissioner Alto asked about the senior housing and if that is assisted living and a senior home. Mr. Nordland stated the provider they are working with wants to do independent living, assisted living, and memory care. Commissioner Alto noted Bluff Creek Boulevard is creating a new entryway into the neighborhoods to the west where people can come right off 212 and cut through. She does not know how safe it is for seniors to be crossing from that senior center to the retail space. She suggested a walking bridge or something to create a safe pedestrian area. Mr. Nordland replied they are trying to make the road as calming as it can possibly be. Commissioner Schwartz asked if there will be underground parking to accommodate the entertainment, office, and retail traffic. Mr. Nordland noted the apartments will have below-grade parking for all residents, the senior facility will have 100% of their resident parking below-grade, the office buildings are built into the hill and will have underground parking, but all retail and entertainment will be surface parking. He explained walkways and sidewalks throughout the retail and entertainment area and connections to trails. Mr. Henricksen noted a condition of approval from engineering is to be able to see the roaming traffic study including vehicular and pedestrian connectivity site-to-site. Chair von Oven asked why people will come from other cities for this site. Mr. Nordland thinks it is the mix of offerings, food and entertainment, and when people think about what to do on a Saturday night they want this area to be the first thing that comes to peoples’ minds in Chanhassen and from the surrounding region. He noted they are also targeting entertainment restaurants right now which may offer things such as a pickleball, bags, and other games. Commissioner Schwartz asked how this will impact the City’s downtown core. Ms. Aanenson replied when they put the district together (regional and commercial) the intent was to add a different type of draw. They see the downtown as being for daily needs including City Hall, post office, big boxes, and grocery stores. The intent of this regional/commercial is for more specialty things. Planning Commission Minutes – August 16, 2022 8 Commissioner Schwartz spoke about page 6 of the report and staff being in support of the two senior housing developments being combined. Speaking as a senior, Mr. Schwartz would like to express a concern that this will effectively be warehousing these people in a mega-building. He is concerned about long distances and routes between parking garages, exits, public areas, and residences. As one gets older they are able to do less and less and he thinks many get hoodwinked into spending their senior years in places like this and many regret it. He would like to know staff’s comments on his opinion. Ms. Aanenson replied the vendor believes they can meet the needs of seniors and noted Mr. Schwartz can make any statement he would like and make modifications to the ordinance if he has the support of his fellow Commissioners. Mr. Henricksen noted regarding traffic they stick to the public right-of-way, look at site plans for traffic circulation, and said they take certain metrics into account for an elderly population. Once they know the end user they can look at whether improvements at an intersection are warranted for enhanced crosswalk treatments. Commissioner Goff understands the movie theater removal as they have all seen it post-Covid. He spoke about changes from a lot of retail, restaurants, and entertainment to housing with retail on the side. He understands they want higher density but thinks it is losing a lot of the character from when it came forth the first time. Mr. Goff thinks there is a different solution than the one proposed and while he is okay with the density he wants to see a different plan. Commissioner Johnson stated when he looks at the first drawing all he sees is parking lots and whether the pavement is any less now it looks more appealing and is not just a sea of asphalt. He noted it is intermixed with smaller retail buildings and the top view of the new layout looks more appealing to him. Commissioner Alto likes the row houses and thinks the apartments will happen regardless of the Commissioners’ opinion. She agrees with Commissioner Noyes about the way it is laid out and while she does not like that the entertainment space is smaller, she thinks it is important to still focus on that entertainment space. Commissioner Noyes noted one thing he does not like about the project and stated five story buildings do not seem like Chanhassen to him. He knows the apartments have been approved for that and he cringes a bit to think that they will move to one senior building that will be five stories. He liked the two senior buildings and agreed with the comment that it makes Chanhassen look like Eden Prairie. He does like the other things including the mix of retail, commercial, and open space but thinks the desire for higher density has really pushed the height issue. Commissioner Alto asked to see a review of what the Commission is looking at this evening. Commissioner Schwartz would like to request a modification to revert to two senior buildings rather than one building. Planning Commission Minutes – August 16, 2022 9 Chair von Oven noted any project that brings more senior housing to Chanhassen is appealing to him. He is not following the logic of why combining two facilities to have more resources available for seniors is a bad idea. He dislikes the idea of seniors walking back and forth between two facilities. Commissioner Schwartz is more concerned about quality of life than he is about quantity. He asked to imagine that some seniors can move on their own volition who park their car with several bags of groceries and must navigate through the parking garage, up elevators, and down extremely long hallways to get to their residence. He stated that is a challenge and when people start to get old and lose their marbles it becomes a problem. It is a matter of quality of life on a daily basis and to stuff 300 units into that kind of building is not right and is not treating people as human beings. Commissioner Alto noted they can only assume about parking and that memory care would be on the other side and they also must make the assumption that the company who owns facilities around the country and does this every day knows how to set up this large of a facility. However they are not at that stage in the project yet. Chair von Oven noted the thing that the Planning Commission is being asked to approve is the flexibility of one 300 unit building or remaining two 150 unit buildings. The Planning Commission will be at a point to evaluate each of the 27 projects and how the building will be brought to life. Ms. Aanenson replied that is correct. Chair von Oven feels the Commission gets some say on how the building will work down the road but today is not that day. Right now it is not a hang up for him and he wants to get the best vendor in there. Commissioner Schwartz replied if the vendor is truly a good vendor they ought to be able to design two facilities and make access to public areas, the garage, and areas that seniors really need. Mr. Schwartz thinks it is advisable to modify the request and require two buildings rather than one five story building. Chair von Oven thinks Schwartz could ask the Commission whether they are in agreement with striking item 3 in the list of detailed changes. Commissioner Schwartz asked if his fellow Commissioners agree with his concern and agree to delete item 3. Commissioner Alto does not support it. Commissioner Johnson does not support it. Chair von Oven and Commissioner Noyes stated the Commissioners know where they stand. Planning Commission Minutes – August 16, 2022 10 Commissioner Goff does not support it. Chair von Oven asked if a Commissioner has a major issue with the motion right now, what are those concerns. He specifically asked about item 4. Commissioner Noyes stated that is probably the only concern he has. He thinks it is a great project but does not like five story buildings in Chanhassen. He is not going to vote against it solely for that concern and noted they will have many more chances to have discussions on this development. Chair von Oven is in the same boat and noted there is a ways to go but it is a fantastic idea for Chanhassen. He stated they only get one chance to do it right and in looking at future projects, specifically the whole center and green space feels very different from what it was. It felt like the space has become so small and he asked what will draw people into that space from outside the City to hang out in that green space? He thinks it’s going to have to be a lot more than what is proposed. As they move forward and look at future individual projects on this property, Chair von Oven will be keenly looking for increases in green space. The gathering place sets this apart from everything else and he asks whether they table this in an effort to get more in the green space, although he does not want to be the guy that delays the project again. He reiterated this project will only be done right one time. He believes this is the right direction and tweaks can be made to the green space to keep people coming. Commissioner Alto asked if they can recommend the green space and entertainment space be revisited to the City Council. Chair von Oven agreed. Ms. Aanenson noted they could add that as item 8 to the requested changes. Mr. Nordland noted the plaza area programming is important and when it comes back before the City they can vote down the developer’s ideas if they have not succeeded. Ms. Aanenson suggested the developer goes back to the larger acreage they saw in the 2020 plan. Commissioner Alto suggested language that the regional draw/entertainment aspect of the project in terms of scope be increased. Ms. Aanenson suggested language encouraging the City Council to value the size, location, and configuration of the gathering space as it is integral to the project. Commissioner Goff noted he likes the more contiguous plan rather than having it all broken up. Commissioner Alto moved, Commissioner Johnson seconded that the Chanhassen Planning Commission recommends the City Council approve amending the Planned Unit Development, PUD-RC, Ordinance 657 for Avienda with details of requested changes: Planning Commission Minutes – August 16, 2022 11 1. Adding 53 row homes between the townhomes and the apartments. 2. Increasing the number of apartments from 250 units to 417 units. 3. Provide flexibility to combine the two 150-unit senior housing developments to one 300- unit building at the southwest corner or develop as shown. 4. Allow southern senior building location to be up to five stories (if buildings are combined) 5. The northerly senior housing would be required to be a retail use if not senior housing. 6. Adds full-service car wash as a permitted use in District 3. 7. Shows potential locations for three to four additional drive-throughs (beyond the four already approved) but does not seek approval at this time. 8. The Planning Commission encourages the City Council to value the size, location, and configuration of the gathering place as an integral part of the project. All voted in favor and the motion carried unanimously with a vote of 6 to 0. APPROVAL OF MINUTES: APPROVAL OF PLANNING COMMISSION MINUTES DATED JULY 19, 2022 Commissioner Alto noted the summary Minutes of the Planning Commission meeting dated July 19, 2022 as presented. CITY COUNCIL ACTION UPDATE: Ms. Aanenson updated the Commissioners noting a short-term rental ordinance is being drafted and the next Planning Commission meeting may be a work session. ADJOURNMENT: Commissioner Schwartz moved to adjourn the meeting. All voted in favor and the motion carried unanimously with a vote of 6 to 0. The Planning Commission meeting was adjourned at 9:25 p.m. Submitted by Kate Aanenson Community Development Director