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2017-04-25 Planning Comm Agenda PacketCITY OF MENDOTA HEIGHTS PLANNING COMMISSION AGENDA April 25, 2017 – 7:00 p.m. Mendota Heights City Hall 1. Call to Order 2. Roll Call 3. Adopt Agenda 4. Approve February 28, 2017 Planning Commission Minutes 5. Public Hearings: a. Case No. 2017-04: Randy & Becky Pentel, 815 Deer Trail Court, Conditional Use Permit for Over-Sized Garage in the R-1 Zone 6. General Planning Items a. Discussion of 2040 Comprehensive Plan Update (presented by Phil Carlson, AICP, Stantec) b. Discussion of Zoning Ordinance Amendment to Allow Freestanding/Pylon Type Signs in the B1 Limited Business and B1-A Business Park Districts 7. Staff Update on Approved or Pending Developments 8. Staff and Commission Announcements 9. Adjourn Auxiliary aids for persons with disabilities are available upon request at least 120 hours in advance. If a notice of less than 120 hours is received, the City of Mendota Heights will make every attempt to provide the aids, however, this may not be possible on short notice. Please contact City Hall at 651.452.1850 with requests. Page 1 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY, MINNESOTA PLANNING COMMISSION MINUTES February 28, 2017 The regular meeting of the Mendota Heights Planning Commission was held on Tuesday, February 28, 2017 in the Council Chambers at City Hall, 1101 Victoria Curve at 7:00 P.M. The following Commissioners were present: Chair Litton Field, Jr., Commissioners Howard Roston, Michael Noonan, Doug Hennes, Christine Costello, and Brian Petschel. Those absent: Mary Magnuson. The following city staff were present: Ryan Ruzek, Public Works Director/City Engineer; Phil Carlson, Consultant Planner (Stantec); and Tim Benetti, Community Development Director. Approval of Agenda Chair Field proposed that the agenda be revised by moving Public Hearing Case No. 2017-03 from being heard third to being heard first. The agenda was approved as amended. Approval of January 24, 2017 Minutes COMMISSIONER NOONAN MOVED, SECONDED BY COMMISSIONER ROSTON TO APPROVE THE MINUTES OF JANUARY 24, 2017, AS PRESENTED. AYES: 6 NAYS: 0 ABSENT: 1 (Magnuson) Administrative Items This was not listed on the agenda; however, every February the Commission welcomes new members. Chair Field was pleased to note that the commission this year is made up of the same members as last year. COMMISSIONER ROSTON MOVED, SECONDED BY COMMISSIONER COSTELLO, TO NOMINATE LITTON FIELD, JR. AS CHAIR OF THE PLANNING COMMISSION FOR 2017. COMMISSIONER NOONAN MOVED, SECONDED BY COMMISSIONER PETSCHEL, TO NOMINATE DOUG HENNES AS VICE-CHAIR OF THE PLANNING COMMISSION FOR 2017. AYES: 6 NAYS: 0 ABSENT: 1 (Magnuson) Page 3 Hearings C) PLANNING CASE #2017-03 HOLY FAMILY MARONITE CHURCH, 1960 LEXINGTON AVENUE CONDITIONAL USE PERMIT Consulting Planner Phil Carlson, AICP explained that Holy Family Maronite Church at 1960 Lexington Avenue wishes to make two small additions to their existing church facility. The commission is being asked to consider the impact on the neighborhood that this conditional use, as opposed to a permitted use, might have on the neighborhood. The existing church occupies the western part of the lot, which is a relatively large lot considering it is a single-family neighborhood. The parking lot occupies most of the lot. Mr. Carlson shared an image of the site plan with the proposed additions. The two proposed additions would be relatively small and one story. There would be no change to the sanctuary or the main assembly space. Therefore, there would be no change to the required parking spaces. Looking at the existing church and what is being proposed, Mr. Carlson stated that the additions are relatively minor and small. It is of the opinion that they would not have a significant impact on the site or on the surroundings. Staff recommended approval of this application. Chair Field opened the public hearing. Mr. Craig Rafferty of RRTL Architects located at 253 E. 7th Street, St. Paul came forward to address any questions from the Commission. He noted that the church is, and wants to continue to be, a very good neighbor. They have enjoyed their relationship with all of their neighbors in the area. The summary provided by Mr. Carlson was spot-on in the sense that this is a relatively innocent addition but it means an awful lot to the church. This would provide them the opportunity to expand their counseling areas, their dining area, and coordinate their administrative space. Mr. Bob Klepperich, 1092 Vale Drive, is the closest neighbor to the church, his property being directly north of the church. He stated that the church has been a great neighbor; has been fortunate to meet members of their congregation; and has had frequent visits with Father Emmanuel, the pastor and on occasion, participated in the church’s liturgy. He has no problem endorsing the project, which has become before the commission. Father Emmanuel reviewed the project with him and he sees a definite need for this type of expansion. For the record, he has only one concern, which he does not believe will be a problem. There is a definite water table problem in the area. The plan does not call for any basement work or excavation work, as the Father has explained it to him, so he does not feel that this would be a problem. He is hopeful that this project would not negatively affect the water table. Mr. Rafferty returned and noted that they were aware of, through the discussions with the planning office, and modest provisions have been made within the reach of this project to adapt the drainage Page 4 swell and to create a more absorbent series of surfaces as it contributes to a nearby catch basin. Otherwise, the ponding areas within the parking area are all being directed to a more distant area from the neighbor’s property within the limits of the project. Chair Field asked for a motion to close the public hearing. COMMISSIONER ROSTON MOVED, SECONDED BY COMMISSIONER NOONAN, TO CLOSE THE PUBLIC HEARING. AYES: 6 NAYS: 0 ABSENT: 1 (Magnuson) COMMISSIONER ROSTON MOVED, SECONDED BY COMMISSIONER HENNES, TO RECOMMEND APPROVAL OF PLANNING CASE 2017-03, CONDITIONAL USE PERMIT BASED ON THE FOLLOWING FINDINGS OF FACT: 1. The use is existing and has been a good neighbor in this location in this zoning district for many years. 2. The existing church use is on a busy corner and not in the middle of a quiet residential area. 3. The proposed additions are modest is size and will have minimal impact on activity, traffic, noise, or other issues that might affect the neighborhood. 4. The proposed project will meet all zoning code standards for setbacks, building height and number of parking stalls. 5. The proposed grading and drainage plan poses no concerns to the City Engineer. AND WITH THE FOLLOWING CONDITIONS: 1. The applicant will submit grading plans, subject to review and approval of the Engineering Department as part of any building permit application. 2. The applicant will submit landscape plans, subject to review and approval by the Planning Department, as part of any building permit application. 3. All new exterior lighting will be downcast cutoff type fixtures to be reviewed and approved by the City Engineer. AYES: 6 NAYS: 0 ABSENT: 1 (Magnuson) Chair Field advised the City Council would consider this application at its March 7, 2017 meeting. A) PLANNING CASE #2016-41 JERRY TROOIEN, 1010 SIBLEY MEMORIAL HIGHWAY AFTER-THE-FACT CRITICAL AREA PERMIT AND CONDITIONAL USE PERMIT Consulting Planner Phil Carlson, AICP explained that the application was for a Critical Area Permit and Conditional Use Permit. The critical area is that portion of the City that is on or near the bluff of the Mississippi River Valley. The property at 1010 Sibley Memorial Highway is a Page 5 fairly large rectangular single-family residential parcel of approximately five acres. The property, as noted in the packet and as some of the commissioners may remember, received an approval for a lot split in 2014; so there is a second single-family lot that will be permitted to be built upon, which will show up on the plans later. Any significant development or disturbance of the critical area requires a critical area permit. Mr. Trooien originally proposed last fall to clear buckthorn and some other trees that were diseased and dying on the property. When staff went to look at that piece of property, they discovered that there had been some work done on the property in the previous year. Mr. Carlson then shared an image of the property with the proposed building site, the area in this request to be cleared, and the area graded without a permit highlighted. In that fall, that application was continued until a more sophisticated and complete plan could be prepared. Mr. Trooien retained the services of a landscape architect, Mr. Stephen Mastey, ASLA, LEED AP of Landscape Architecture, Inc., who was present at this meeting, and who worked with the applicant and city staff to develop that plan. Because this was unfolding last fall, Mr. Mastey approached city staff and requested permission to at least secure the site for the winter so that the spring thaw would not contribute to erosion down the hill. He was given that permission and the erosion control measures were installed. Therefore, the site was secured over the winter. As part of this application, Mr. Trooien is asking for to do some work in grading, tree removal, and reseeding and replanting of the property, mostly in the area of this new home lot. Most of the Commissioners and city staff went out last Saturday morning (February 25th) and walked the site with Mr. Trooien and Mr. Mastey so they could explain the kind of work that is being proposed and the nature of the area. The critical area has a special code on it because it is a unique environment with a unique feature that needs to be preserved, protected, and enhanced. Mr. Mastey’s analysis revealed that there is a lot of scrub material, buckthorn, invasive species of trees, and dead and dying trees located on the property. Therefore, some kind of work on the property is appropriate and reasonable. Mr. Carlson shared an image of the previously disturbed area and explained that it is to be re- graded with the native seed mix so that when it comes up it would be native and appropriate for this area, as well as adding in native species of trees. In tandem with this plan they are looking forward to when this second lot could be built on. Again, it is an approved lot split, a home will go there; however, disturbance in the critical area requires review and city approval. Mr. Carlson then explained the intended location of the driveway and building pad and, in the process of that, create a depression that would be a drainage area, filtration pond, which would overflow into another depression and infiltration area inside the driveway turnaround, that would in turn flow to a lower part of the site. It is a plan that would enhance and protect the drainage on the site and at the same time create this new home site. Also included in this plan is a proposal to move the proposed building pad for a new house well away from the neighboring property to the east. In the original approval, in 2014 for the lot split, this building pad was approved within 20 feet of the lot line. It is now being placed about 60 feet Page 6 away from that lot line. This is a significant improvement to the overall site planning and relationships to the area and will improve the drainage on the site. A key component of this is to try to preserve the character of the area and the river valley. Right now, most of that area is comprised of invasive species and so the plan is to remove buckthorn and to selectively remove some of the dead and dying elm and other trees that are non-native to the area and replacing them with native trees. Staff recommended approval of this application. To that tend, Mr. Carlson read the first condition of approval as, “Removal of trees and underbrush will be performed by a qualified professional. Removal of vegetation is confined to the area and the vegetation defined on drawings and photos accompanying the application.” He then continued by stating that there would be new drawings prepared because there is recommendation for an added area to be able to remove buckthorn. Therefore, Mr. Carlson would be adding a phrase here that would be ‘drawings prepared by whom and on specific dates’ so everyone knows exactly what drawings are being referred to. It is the intent of all involved to have these preparers and dates included by the time this application would reach the City Council, if approval were recommended by the commission. As further definition, Mr. Carlson explained that the applicant was proposing is that they be allowed to remove buckthorn on the entire property, not just on the confined area around the new building pad; and remove invasive non-native trees that are smaller than 3” in diameter. The larger trees would not be removed, except for those that are in the building pad area. The next five conditions would remain the same; however, based on this additional work, staff would add two new conditions seven and eight: 6. A bond or letter of credit will be required for all work performed on site to ensure the grading, planting, and landscaping is completed as approved in an amount to be determined by the City Engineer. 8. All plant materials to be warranted for a minimum of three years from the date of installation. Chair Field noted that this is a public hearing that was held open from a prior meeting and is a continuation. He also noted that under the extension that was authorized by the applicant, the City has until June to act on this request. Commissioner Roston asked for clarification that the lot split has already been approved and completed. Mr. Carlson replied that this is correct. The only item under consideration is the Critical Area Permit and Conditional Use Permit. Commissioner Petschel requested Mr. Carlson to review the constraints with respect to the removal of vegetation. Mr. Carlson replied that the Landscape Plan is only in the previously disturbed area. The removal of trees would be in the other area that was originally defined; to remove buckthorn and the large trees because the grading and such for the new home pad would remove those and many those, as noted, are invasive species. Page 7 They are now asking to try to take a larger view of the whole property and remove buckthorn on the entire property and if there are invasive trees that are no larger than 3” in diameter, to remove those too. Invasive trees larger than 3” in diameter would remain so there would be no removal of the high canopy. Commissioner Noonan noted that in the added phrase to Condition #1, those plans that are being prepared would define what is being removed. He then asked if it would also define what is being replaced. Mr. Carlson replied that what is being replaced are already outlined in the plans. The plans will also define the extent of the removal. The plans would be agreed upon between the City Engineer, the City Planner, and the applicant. The plans also would not come before the City Council until approved by all. Chair Field noted for the record that staff did properly advertise a site visit last Saturday (February 25, 2017) and all but one commissioner was present. It was merely a fact-finding visit to the property since it is somewhat restricted access so they could get a complete appreciation of the site. Mr. Stephen Mastey, ASLA, LEED AP of Landscape Architecture, Inc. came forward and reiterated that the summary provided by Mr. Carlson clearly stated the intent. The additional fact- finding exercise was held so the commission could actually get to the site, see what is there, and understand the highly degraded woodland that is there. The intent of trying to flip that over and work toward something 50 to 100 years from now more closely resembles a pre-European settlement with native forest, whether that is thick woods or oak savannahs. He provided a couple of clarifications by sharing an image and pointing out on that image the grading limits. There are three parts to this request; re-vegetation, request to remove and re-grade to start to set the stage, and to look at the entire property that is overrun with buckthorn. They are not only requesting permission to address the invasive that are in the area that has been disturbed and where the new house pad is proposed to be, but to work out from that point and remove any buckthorn and other invasive that are less than 3” in diameter. They desire is to create more healthy woodland. Chair Field asked for Mr. Mastey’s professional opinion on whether or not Mr. Trooien would need to make special precautions during the removal of the buckthorn and other invasive species so as to not degradate the slope and create some potential erosion problems. Mr. Mastey replied that they would be taking a two-phase approach; cut the trees down at grade leaving the entire root system intact and using Minnesota Department of Agriculture approved chemicals that would kill the buckthorn. They do not wish to disturb the soil at all. Then as these plants start to die back, the vegetation that is still there would take up the extra air and sunlight and fill in. Hopefully, they will start to see some of those species, even some of those things as simple as Ash trees start to reseed now that there is some light. This is a cautious approach by not disturbing the understory and leaving the root system in place. Commissioner Petschel noted that the final grading as demonstrated in the staff report does not seem to be reflected in the landscape plan. Mr. Mastey replied that there were three ways they Page 8 could entertain what they are requesting. Firstly, look at what needs to be done to restore the area that has been disturbed. He wanted to clearly delineate, at the very least, that this needed to be addressed. So it was left as is. Secondly, moving into the larger area, they are assuming that as this is developed and they put final construction documents together there will need to be native seeding that is similar in character to what was being suggested in the disturbed area except to move more towards woodland species that do a better job in lower sunlight situations. There may also be some additional trees that are planted but right now they just wanted to get over this hump and then they could work with the City and what their requirements might be for single-family lots for landscape requirements, etc. Ms. Maxine Bergh, 996 Caren Court, explained that her property backs onto Mr. Trooien’s property. At the present time, there are two stakes visible from her kitchen: one on her lot line and the second where the building pad was originally intended to be. She asked if the movement of the building pad farther away from the lot line has been carved in stone. According to the drawing she saw, it appears that the impervious driveway surface will be very close to her property. She wanted to ensure that the Commission is cognizant of this because they have lived in this neighborhood for more than 40 years and love it. She understands that nothing is guaranteed but is understandably concerned about what happens behind them. Mr. Carlson returned and stated that the original building pad during the lot split was shown to be about 20 feet from the lot line. That is what is staked on the site. All of the split lot is below Ms. Bergh’s property. With this approval and plan then the new home would be placed about 60 feet from her lot instead of 20 feet. Then what is next to her lot would be partly a driveway but it would be below her view, down the slope, and flat to the ground at that point. Commissioner Noonan stated that once a formal proposal is made for a home, it would be brought before the Commission for consideration and a second critical area application. Commissioner Roston stated that it appears that most of the homes in her neighborhood are roughly the same distance apart from each other as she would be from the new lot. This proposal does not appear to be changing that. Ms. Bergh agreed; however, they are used to woods and love it. When she looks at this proposal and sees the location of the proposed driveway she sees quite a change in her view. She just wants everyone to know that she is paying attention. Mr. George Bergh, 996 Caren Court, said that he appreciates the effort that the 60-foot setback from their lot line and it appears that it is documented. Obviously there is some flexibility in development; however, he was unclear on just how close to his lot line the driveway would be. He understands that it would be below their profile because of the berm. Mr. Carlson replied that the driveway would be approximately 20 feet from the lot line. Just about the same place as the previous location of the building pad. Mr. Bergh asked for clarification, as it appears that, on the plans in the staff report, the dotted line extends over onto his property. The response was that the line Mr. Bergh was referring to were contour lines of the existing grading and was not boundary lines in any of the plans. Page 9 Mr. Daren Carlson, 992 Caren Court, stated that he liked the changes that were proposed both in terms of moving of the building pad but also the vegetation plans. He asked about the grading limits and how far does that have to be from the property line. The response was that there are not setback requirements for a grading permit. He then noted that this property has had somewhat of a checkered past and part of the resolution was to have a complete plan before moving forward on approving the permit. It does appear to be very good and complete, except for this Prepared By X on Date X. Given the history of this property this leaves him very uncomfortable. He believes this should be completed before any approval is provided, as a ‘complete plan’ was what was agreed upon. Chair Field noted that one of the clarifications received from Mr. Carlson was that this would be completed before it goes before the City Council for final review and possible approval. In effect, the commission is granting staff some latitude to come up with a plan to go to the City Council and still move this along. Commissioner Noonan replied that the commission is only making a recommendation; the City Council ultimately makes the decision that all the “i’s” are dotted and “t’s” crossed. Ms. Alice Chapman, 1011 James Court, noted that her concern was the plan to clean out the total property of buckthorn and trees that may be like 20 feet or less in height. She just purchased her property a year ago and one of the selling points was the privacy behind her property. If they remove all of those trees there will be no privacy. Commissioner Noonan requested clarification from staff that any of the work that is being proposed is not on the Trooien lot – the existing Trooien lot where the house is – but rather on the lot on the north side of the Trooien house and therefore would not affect Ms. Chapman’s view. Before staff could answer Ms. Chapman noted that she just heard was that they wanted to have permission to do the entire property. Chair Field replied that the request if not to remove every tree 20 feet or less in height; it is only certain invasive species that are not natural that have evolved there over time. Commissioner Petschel further clarified that the trees would be 3” or less in diameter, not less than 20 feet in height. Mr. Jerry Trooien, 1010 Sibley Memorial Highway, came forward and asked for a quick education on the added condition #7; “A bond or letter of credit will be required for all work performed on site to ensure the grading, planting, and landscaping is completed as approved in an amount to be determined by the City Engineer.” Mr. Carlson replied that this condition was added since there is a significant amount of work to be done on this property and there is going to be material removed and then material replaced, including the native seed mix and including a number of new trees. Worst-case scenario, he gets halfway through the project and disappears. The City needs to know, and the neighbors need to Page 10 know, that work will be completed. It is like any other project where there is a guarantee and assurance necessary. Mr. Trooien stated that no one is required to provide letters of credit to get their work done – that is between them and their contractor. Public Works Director Ryan Ruzek stated that the applicant is requesting to disturb up to five acres for invasive species removal. In development situation, the City typically requires a Letter of Credit for the landscaping portion of that project, which is usually 125% to 150% of the value of the landscaping work. Mr. Trooien asked if an infrastructure being built is asked to provide a Letter of Credit for their landscaping work. Chair Field replied that five acres is typically for more than one home; although in this case it is for one home; it is a five-acre site in the critical area and that was staff’s recommendation. The commission saw this for the first time this evening and they will have a discussion about it now that Mr. Trooien has voiced his concern. Mr. Trooien stated that he feels like this is singling him out and is onerous and unusual. Mr. Carlson indicated that it is an unusual situation; however, this is in an unusual location. Mr. Trooien is probably right that a homeowner in another part of Mendota Heights no one would care because if someone were to take down a tree and not replant it – that is just part of being in a suburban environment. Here in the critical area the commission, City Council, and the neighbors want to know that this work will be completed and when it is completed then that Letter of Credit or bond is relinquished. Mr. Trooien then asked is everyone who lives between the river and Highway 110 going to be asked to submit a Letter of Credit if they are doing work in their yard. Chair Field replied that it in part due to the size of the lot. However, it can be debated all evening. The commission will make the decision and they appreciated his comments. Commissioner Noonan noted that he believes that it also has to bear the fact that it is an after-the- fact approval that is being asked. They are looking to restore something that was removed without the necessary approvals. He recalled a similar situation in the critical area where the commission came forward and it was done without the necessary approvals and a letter of credit was also asked at that time as well. Mr. Mastey returned and noted that they are aware that it is five acres they are requesting to remove buckthorn from. This gives Mr. Trooien the ability to sit in his backyard and think about at what point do you pull it out or not; that is why they did not specify it in the plan because part of it is standing on the site and making sense of it. To that point, one of the overlying things to be thought about is if they do not remove the buckthorn then all they will have is buckthorn at some point in time in the future. They are trying to come in and have a balance where they start to set the stage where they have some larger trees starting to regenerate so that 50 or 100 years from now they actually have something on this property other than buckthorn. His second point was that in developing Parcel B, where would the best spot be for the house. They looked at the lot real close and thought about a couple of layouts; and thought about the details of the house. Commissioner Roston pointed out that this is not the venue for discussing the Page 11 house detail, as the commission is not making a decision today on that issue. The point was that he and Mr. Trooien made a thoughtful analysis of where the best place for the house would be. This is why they pushed the house further away from the lot line because 20 feet away did not make sense. Chair Field asked for a motion to close the public hearing. COMMISSIONER NOONAN MOVED, SECONDED BY COMMISSIONER COSTELLO, TO CLOSE THE PUBLIC HEARING. AYES: 6 NAYS: 0 ABSENT: 1 (Magnuson) Because staff made some changes in terms of the recommendations and the commission did not have that in their packet, Chair Field requested Mr. Carlson to put the revised recommendation on the overhead. Mr. Carlson complied. COMMISSIONER NOONAN MOVED, SECONDED BY COMMISSIONER ROSTON, TO RECOMMEND APPROVAL OF PLANNING CASE 2016-41, AFTER-THE-FACT CRITICAL AREA PERMIT AND CONDITIONAL USE PERMIT BASED ON THE FOLLOWING FINDINGS OF FACT: 1. The property is within the Critical Area and subject to code requirements of the Critical Area Overlay District. 2. The work proposed involved is reasonable and within the spirit and intent of the Critical Area, if done carefully and professionally. AND WITH THE FOLLOWING CONDITIONS: 1. Removal of trees and underbrush will be performed by a qualified professional. Removal of vegetation is confined to the area and the vegetation defined on drawings and photos accompanying the application. These [specific] drawings were prepared by [whom] on [specific date(s)]. 2. Erosion and sedimentation measures will be put in place during grading and construction activities. 3. Grading and landscape work will be performed by a qualified professional. 4. All work on site will only be performed between the hours of 7:00 am and 7:00 pm. 5. If and when a new home is proposed on Parcel B, all building, grading and landscape work will require a new Critical Area Permit. 6. If and when a new home is proposed on Parcel B, utility plans will be required for review and approval by the City Engineer. 7. A bond or letter of credit will be required for all work performed on site to ensure the grading, planting, and landscaping is completed as approved in an amount to be determined by the City Engineer. 8. All plant materials to be warranted for a minimum of two years from the date of installation. Page 12 In his motion, Commissioner Noonan also requested an amendment of Condition #6 that reads, “If and when a new home is proposed on Parcel B, all building, grading and landscape work will require a new Critical Area Permit.” He requested that “all grading, stormwater management, and utility plans” be added as this would add an additional level of detail to alleviate the concerns of the neighbors. Commissioner Petschel asked about the bond requirement. The only way it made sense to him is if the grading would somehow undermine the integrity of the hill and staff would want to ensure that it was secured to prevent any sort of catastrophic erosion if it wasn’t completed. Chair Field did not agree completely with this observation. Staff would want to have it completed as a condition of the plan. A lot of times with landscaping, particularly in the critical area, it does not take and there needs to be some way to remedy it not taking and have the ability to enforce someone coming in to complete it. That is not to say that Mr. Trooien wouldn’t; it is just a common practice to address the concern by, in this case the City, to make sure there is a remedy there. Commissioner Roston noted that there is a process in place that Mr. Mastey has outlined very well. They are removing old material, grading the site, reseeding with a native mix, planting new trees and it is a process that will happen over the course of some time. Staff and the city want to ensure all of that is done. If there is an interruption for whatever reason in the middle of that no wants to be left with a hillside that is half done and the city needs to make sure that it can be completed. This is why a bond or letter of credit is required on many kinds of projects. AYES: 6 NAYS: 0 ABSENT: 1 (Magnuson) Chair Field advised the City Council would consider this application after the work has been done with staff to prepare the necessary documentations. B) PLANNING CASE #2016-43 CITY OF MENDOTA HEIGHTS DOMESTIC CHICKEN ORDINANCE Chair Litton Field explained that the item under consideration is a revised draft ordinance for domestic chickens. He asked for confirmation that the commission closed the public hearing at the last meeting and directed staff to work towards a proposed ordinance for the commission to review. Consulting Planner Phil Carlson, AICP replied that he recalled the direction from staff but did not recollect the closing of the public hearing. There were people in attendance interested in this topic if the commission wished to hear from them. Chair Field read the minutes of the last meeting and confirmed that the public hearing was closed. At this time, Mr. Carlson quickly reviewed the edits made to the draft ordinance per the requests made by the commission at their last meeting. Those changes being: Page 13 • Section 5-3-10: Add some enforcement capacity to the warden to be the same or similar to the zoning enforcement officer • Section 12-1B-2: no changes were proposed • Section 12-1D-3C o The run should have a ‘minimum’ of five square feet per chicken o The height should be the typical standard rise and run if the eave height is seven feet o The lot setbacks should be 10 feet from the side yard lot line and 10 feet from the rear o Construction of and materials used must be adequate to prevent access by rodents [substitute a different term to encompass other animals and rodents] o Remove the reference to screening o Under Fecal Waste or Litter: remove “or composted provided the method used and the location does not present a public nuisance or health issue” o Add language that any accessory structure erected after the issuance of this bylaw shall not be used for the purposes of a chicken coops o Add language allowing for the revocation of the permit Commissioner Hennes asked if the Council had discussed this at all since the commissions last meeting. Mr. Carlson replied in the negative and noted that Council had discussed this at their January 3, 2017 meeting and directed the commission to prepare an ordinance for them to review. COMMISSIONER COSTELLO MOVED, SECONDED BY COMMISSIONER HENNES, TO RECOMMEND APPROVAL OF PLANNING CASE 2016-43, DOMESTIC CHICKEN ORDINANCE AYES: 4 (Hennes, Costello, Petschel, Field) NAYS: 2 (Roston, Noonan) ABSENT: 1 (Magnuson) Verbal Review Consulting Planner Phil Carlson, AICP gave the following verbal review: PLANNING CASE #2017-01 DBG, LLC, 1919 HUNTER LANE LOT SPLIT & CRITICAL AREA PERMIT • Approved by the City Council as recommended by the Planning Commission. PLANNING CASE #2017-02 MARK GERGEN, 697 WESLEY LANE LOT SPLIT • Twice requested to be continued by the applicant Staff and Commission Announcements Chair Field noted that he was remiss at the start of the meeting to welcome Mr. Timothy Benetti as the new Community Development Director. Page 14 Mr. Benetti noted that it has been a steep learning curve this last week. He was born and raised in a small farming community in north-central Iowa, went to school there and went to grad school in Nebraska. His wife is from the New Brighton area; they are currently living in Woodbury and have four kids. He just came from the City of Brooklyn Center as their City Planner for approximately six years, prior to that he worked in other communities in Iowa and in the metro. He also had the pleasure to work with City Administrator Mark McNeill approximately 20 years ago. He has worked with Mr. Carlson, who was his mentor in 2002 when he took over for the City Director position in the City of Vadnais Heights. He is looking forward to working with everyone on the Comprehensive Plan coming up. Chair Field also expressed his appreciation on behalf of the Planning Commission to Mr. Carlson for pitch hitting since October 2016 and being the city’s contract planner. He has done a fine job of stepping in. Chair Field asked if a work plan has been created in or is taking form for the work coming up on the Comprehensive Plan. Mr. Carlson replied that his organization, Stantec, did put together a proposal that Mr. Nolan Wall, previous City Planner, brought to the commission and got approved in the weeks before he left. A background report has been created and they will be picking that back up and the commission will hear about it soon. Chair Field noted that this is an important initiative and he encouraged residents to be engaged and participate in this process, as it will set a pattern for many issues in the coming decade. Adjournment COMMISSIONER PETSCHEL MOVED, SECONDED BY COMMISSIONER ROSTON, TO ADJOURN THE MEETING AT 8:22 P.M. AYES: 6 NAYS: 0 ABSENT: 1 (Magnuson) Page 15 Request for Planning Commission Action MEETING DATE: April 25, 2017 TO: Planning Commission FROM: Tim Benetti, Community Development Director SUBJECT: Planning Case 2017-04 Conditional Use Permit – 815 Deer Trail Court Applicant – Randy & Becky Pentel Introduction The applicants are seeking a conditional use permit to a conditional use permit to allow the construction of a 20-foot wide garage addition to an existing three-car attached garage. The subject property is located at 815 Deer Trail Court. Background Pursuant to City Code Section 12-1D-3 Accessory Structures, a conditional use permit is required for the construction of an attached garage of more than 1,200 square feet, with a maximum square footage of 1,500 square feet. The proposed garage addition would bring the total garage space on the property to approximately 1,500 square feet. The submitted application includes the attached garage addition and survey of the property. The proposed use complies with the standard of review for conditional use permits and should be compatible with the overall intent of the Single Family Residential Zoning District. Discussion The City is using its quasi-judicial authority when considering action on subdivision and zoning requests and has limited discretion; a determination regarding whether or not the request meets the applicable code standards is required. Recommendation Staff recommends the Planning Commission discuss the requests in this case and make a recommendation to the City Council. Action Required This matter requires a simple majority vote. Page 17 Planning Staff Report MEETING DATE: April 25, 2017 TO: Planning Commission FROM: Tim Benetti, Community Development Director SUBJECT: Planning Case 2017-04 Conditional Use Permit APPLICANT: Randy and Becky Pentel PROPERTY ADDRESS: 815 Deer Trail Court ZONING/GUIDED: R-1 One Family Residential/ LR-Low Density Residential ACTION DEADLINE: June 2, 2017 DESCRIPTION OF THE REQUEST The applicants are seeking a conditional use permit to allow the construction of a 20-foot wide garage addition to an existing three-car attached garage. The subject property is located at 815 Deer Trail Court. Title 12-1D-3, Subpart C. provides for attached garages “more than one thousand two hundred (1,200) up to one thousand five hundred (1,500) square feet” to be allowed via a conditional use permit. A public hearing notice for this planning item was published in the local newspaper and notice letters were mailed to all surrounding properties within 350-feet of the subject property. BACKGROUND The Pentel’s residence is located at the end of Deer Trail Court, immediately off Wachtler Avenue. The property consists of 0.67 acres and contains a two-story, 4,670 sq. ft. dwelling, with a 784 sq. ft. three-car attached garage. The Pentel’s also own the vacant 0.53 acre parcel to the east. (See aerial images below) Page 18 The Pentel’s are seeking to provide additional garage and storage space for their personal vehicles and equipment. They stated the current garage is somewhat limited in depth for parking personal cars inside their garage, and the added garage will help provide the space they desire. The existing 784 sf. attached garage is shown by the blue-outline in the image below. The proposed garage addition will take place along the east side of the garage (see survey image below). The setbacks from the easterly wall edges are indicated with a 23.9 ft. setback from the front structure corner and a 30.1-ft. setback from the northeasterly most structure corner. The Pentel’s intend to add 689 sq. ft. of garage, for a total of 1,473 sq. ft., which is illustrated by the light- yellow shaded region in the image below: Page 19 The plans submitted by the applicant also included a reference to excavate the entire footprint area underneath the garage and install concrete panels (often called “Span Crete”) to serve as the new garage floor. Plans call for owner to provide a new access-way from the lower level of the home into this new lower level garage/storage space. It appears the garage layout plans do not quite match-up to the submitted survey, as the layout plan includes a 4 foot additional bump-out to the rear of the existing and planned garage addition. Although this additional space is not shown on the survey, it does not detract from the overall intent of the application, affects the analysis contained herein, or negates the continued processing of this conditional use permit. Page 20 ANALYSIS Title 12-1L-6-E-1 of the City Code contains standards for reviewing a conditional use permit request; the following are to be taken into consideration: • The effect of the proposed use upon the health, safety, and welfare of occupants or surrounding lands; • existing and anticipated traffic conditions including parking facilities on adjacent streets; and • the effect of the proposed use on the comprehensive plan. In addition, the following standards must be met: • The proposed use will not be detrimental to the health, safety or general welfare of the community; • will not cause serious traffic congestion nor hazards; • will not seriously depreciate surrounding property value; and • the proposed use is in harmony with the general purpose and intent of the City Code and the comprehensive plan. • Comprehensive Plan The subject property is guided LR-Low Density Residential in the 2030 Comprehensive Plan. The proposed garage addition qualifies as a conditional use in the applicable zoning district and would remain compliant with the Comprehensive Plan, subject to city approvals. • Conditional Use Permit Pursuant to Title 12-1D-3, Subpart C., any attached garage “more than one thousand two hundred (1,200) up to one thousand five hundred (1,500) square feet” can be allowed only by means of a conditional use permit. Because of the requested 689 sq. ft. addition to the existing 784 sq. ft. attached garage structure, the applicants are requesting a conditional use permit for its construction. The current garage contains a 16-foot wide (double) overhead door, along with a 9-foot, single-wide overhead door for the “third stall.” Title 12-1D-3, Subpart C. contains the added standard regulating the size and number of garage doors: “No more than thirty six (36) linear feet of garage door per structure, measured horizontally, may be installed to provide access to any private garage or other accessory building space on a single- or two-family residential property. More than thirty six (36) linear feet of garage door may be provided by conditional use permit when such additional garage door exposure is not visible from a public street or from surrounding residential property.” The applicant’s plans indicate they intend to remove the smaller 9 foot (3rd stall) door, and replace with two 16-ft. wide by 8-ft. high overhead doors in the existing opening and a new opening to the expanded garage area, with an approximate 10-foot separation between both doors. As mentioned earlier, plans call for the full excavation of the lower level underneath the garage and plans also calling for the construction of an upper addition to the home, which ties into the upper level of the existing dwelling. Staff assumes this upper area will be used for additional living or storage space by the homeowners, while the lower level (underneath the garage space) will be used for miscellaneous use or household storage only. No part of this excavated or lower space can be used for storage of vehicles or recreational equipment. No outside doors will be allowed to the rear or side yard areas. The plans indicate the exterior materials of the proposed garage will be consistent with the existing dwelling materials, including new brick veneer and stucco exterior materials. Page 21 • Conclusions For all intents and purposes, this expanded garage structure should make a nice addition to the existing dwelling, and will offer adequate means to providing additional storage of vehicles, equipment and personal livable space for the homeowners. The fact the owners possess the wooded adjacent lot to the east helps diminish any perceived negative impacts to neighboring properties and helps lessen the views from adjacent roadways. City staff believes the proposed use will not be detrimental to the health, safety or general welfare of the community; should not cause any serious traffic congestion nor hazards; will not seriously depreciate surrounding property value; and the proposed use appears to be in harmony with the general purpose and intent of the City Code and the comprehensive plan. In preparation of this report, there have been no inquiries, concerns or complaints raised by neighbors related to this request. Staff found no reasons to preclude the homeowners from developing this new garage addition as planned, or discovered any evidence the proposed garage use will be contrary to the standards of review for conditional use permits listed above. Staff therefore, believes the use may be considered compatible with the intent of the One Family (single-family) Zoning District and may be approved. ALTERNATIVES 1. Approval of the Conditional Use Permit request, based on the findings of fact that the proposed use is compliant with the applicable City Code requirements and is consistent with the Comprehensive Plan, with conditions. OR 2. Denial of the Conditional Use Permit request, based on the finding(s) of fact determined by the Planning Commission and/or City Council. OR 3. Table the request and direct staff to extend the application review period an additional 60 days, in compliance with MN STAT. 15.99. STAFF RECOMMENDATION Staff recommends approval of the Conditional Use Permit to construct a new garage addition to the existing attached garage structure in the R-1 One Family District, based on the findings of fact that the proposed use is compliant with the applicable City Code requirements and is consistent with the Comprehensive Plan, and subject to the following conditions: 1. The new garage addition, including new exterior building materials and overhead doors must be architecturally compatible with the existing dwelling and garage structure. 2. The planned lower level of the garage will only be accessed from the existing lower level of the residence, and no part of this area may be used to store or park vehicles (cars, trucks, recreational vehicles, etc.) ,and no access door(s) will be allowed from the lower levels to the rear or side yards. 3. A building permit shall be required prior to any demolition, excavation or construction of the new garage addition. ATTACHMENTS 1. Aerial site map 2. Planning applications, including supporting materials Page 22 FINDINGS OF FACT FOR APPROVAL Conditional Use Permit Request for Over-Sized Attached Garage 815 Deer Trail Court The following Findings of Fact are made in support of approval of the proposed request: 1. The existing use of the subject parcel as a single-family residential dwelling is consistent with the City Code and Comprehensive Plan. 2. The planned development and use of the 689 sq. ft. of garage addition, resulting in a total of 1,473 sq. ft. for garage use purposes, is considered a reasonable request, and is consistent with the City Code and Comprehensive Plan. 3. The proposed garage addition easily meets the required setbacks and other standards established under the R-1 One Family District. 4. The proposed garage use will not be detrimental to the health, safety or general welfare of the community; should not cause any serious traffic congestion nor hazards; will not seriously depreciate surrounding property value; and said use appears to be in harmony with the general purpose and intent of the City Code and the comprehensive plan. 5. The proposed garage addition and structure is compliant with the conditions included in the City Code that allow it by conditional use permit. Page 23 Page 24 Page 25 Page 26 815 Deer Trail Court Property Information April 20, 2017 0 110 22055 ft 0 30 6015 m 1:1,200 Disclaimer: Map and parcel data are believed to be accurate, but accuracy is not guaranteed. This is not a legal document and should not be substituted for a title search,appraisal, survey, or for zoning verification. Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 MEMORANDUM Date: April 25, 2017 To: Mendota Heights Planning Commission From: Phil Carlson, AICP, Consulting Planner Re: Mendota Heights 2040 Comprehensive Plan Update Last fall the City retained Stantec to assist with the update to the City’s Comprehensive Plan. We initiated the process and began our background research just as the previous planner left in October for a different job, and I stepped in (as you know) to assist with day-to-day planning activities until Tim Benetti started in February of this year. Much of the background research for the Comp Plan continued but the full process of working with the Planning Commission and community on the Plan was put on hold. Now we are starting in again. The attached materials summarize the background report we are preparing and includes the Background Report: Market and Development Context prepared by Tangible Consulting, our subconsultant on the project. I will make a brief presentation of this material at the April 25 Planning Commission meeting and invite your questions and comments. Then the process will pick up steam into the summer and fall as we review goals, prepare for a community meeting to review this information and move into next year to prepare the new plan. Page 33 Background Report: Market and Development Context In support of: 2040 Mendota Heights Comprehensive Plan Prepared for: City of Mendota Heights, MN December 2016 Prepared by: Tangible Consulting Services Stantec, Inc Page 34 C ONTENT S Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Residential Market Context . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Retail Market Context . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Employment Context . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Industrial Market Context . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Office Market Context . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Page 35 Introduction Purpose The purpose of this background report is to outline the economic context that will shape the future in Mendota Heights. It overviews the unique housing and economic base that characterizes the city and provides analysis of opportunities and challenges for Mendota Heights. The report supports the Mendota Heights 2040 comprehensive and long-range planning process that will establish goals for future redevelopment and policy decisions in Mendota Heights. This report is based on several types of information: market research, a review of existing reports, interviews with local developers and real estate professionals, and direct observation. Mendota Heights is a fully developed suburb. While that status limits opportunities for new development, there is a need to stay viable and attractive as the demographics of the Minneapolis-St. Paul metropolitan area shift. The population is growing, it is aging, and more households will be renters. Choices about purchasing and employment will also evolve. Decisions about housing redevelopment, retail support and location, and office and employment opportunities will influence Mendota Heights’ character as a desirable place to live. This report considers the housing, retail, industrial and office development sectors. It looks at regional trends, as well as conditions in Mendota Heights. It evaluates strengths and weaknesses of Mendota Heights locations with respect to these development sectors, and evaluates opportunities for additional growth and development. As the Mendota Heights comprehensive planning process progresses, the analysis and findings in this report will serve to inform decision-making. They will be further modified and augmented through the process of developing the comprehensive plan, based on discussion with policymakers, stakeholders, and others. Page 36 Residential Market Context Existing Conditions Mendota Heights is a fully developed first-ring suburb. Its abundance of open space, lakes and wooded areas give it a distinctly suburban and in some areas rural feel. Yet its central location gives it excellent access to downtown St. Paul and the greater metropolitan area. Housing in Mendota Heights is predominantly single family. Eighty percent of residential land is guided for low density housing, with an allowed 2.9 housing units/acre. (Source: 2030 Comprehensive Plan) Nine percent is guided rural residential which allows 1.1 units/acre. The remaining 11% of residential land is guided for medium to high density housing. Around 70% of existing housing units are single family homes. Roughly 15% are townhomes, and 15% are in apartment buildings. Owner occupied housing predominates. Less than 15% of housing units are renter occupied. Single family housing. Residential neighborhoods throughout the City are strong. Homes are generally well maintained. The great majority were built in the last 50 years, as illustrated in the map below. A smaller number of homes are older than that, and go back to the late 1800s and early 1900s. They are scattered throughout the community, but most are in the northeast area. Housing Development by Decade: Single Family Homes and Townhomes Source: Mendota Heights Assessor Data Homes in Mendota Heights are valued markedly higher than that of homes in neighboring communities, or homes in the Metropolitan Area as a whole. The median value of a single family home in Mendota Heights in 2015 was approximately $360,000. High home values are correlated with the higher household incomes that are typical in Mendota Heights. 0 1000 2000 3000 4000 5000 Census 1990 Census 2000 Estimates 2010 Estimates 2015 Mendota Heights Housing Types Single Family Homes Townhomes Duplex, Triplex, Fourplex Multifamily (5 units or more) 0 1000 2000 3000 4000 5000 1990 2000 2010 ACS 2011-2015 Mendota Heights Housing Tenure Owner occupied Renter occupied Vacant Page 37 Source: American Community Survey, 2011-2015 Market Value: Single Family Homes and Townhomes Source: Mendota Heights Assessor Data The map of homes by value shows a similar pattern to the map of homes by age. Higher value homes tend to be in the neighborhoods that were developed most recently. Multifamily housing. Although single family housing predominates in Mendota Heights, the city offers some townhome communities, as well as a few apartment and condominium buildings. There are four existing apartment developments in Mendota Heights. Three are for seniors. One is for general occupancy. An additional four-story apartment building with 139 units is being developed in the Hwy 110/Dodd Road area. Residential Context Map Source: Mendota Heights Assessor Data $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 Median Home Value Page 38 Housing Needs Mendota Heights’ housing stock of mostly single family, owner-occupied homes is valued by City residents, and is a good fit for upper income, family households. It offers more limited options, however, for a range of other household types. With a metropolitan household that is aging and diversifying, the interest in a broader set of housing choices will increase. Broadening the housing types available in Mendota Heights may be beneficial for attracting younger couples and families, and providing opportunities for older residents who are transitioning from large single family homes. Few opportunities are similarly available for the moderate to average income households that may serve as teachers in the City’s schools, or be employed in some of the City’s industrial businesses. The following two chart show the affordability of the City’s existing housing, and the number of housing units that are publicly subsidized. Source: Metropolitan Council Source: Metropolitan Council Housing Units Affordable to Households with Income: At or below 30% AMI 42 30% - 50% of AMI 180 51% - 80% of AMI 995 (AMI: 2016 area median income in Twin Cities for a household of four is $85,800) Publicly Subsidized Housing Units Total Housing Units 4,676 Total Publicly Subsidized Units 134 Public Subsidized Senior Units 110 Page 39 Market Dynamics – Regional A shift from owner occupied housing to rental housing has been occurring since the Great Recession, and is continuing in 2017. This is partly due to the reduced ability of some households to meet the financial requirements of purchasing a home, and more stringent mortgage qualification requirements. But it also reflects changes in preferences—that is, an increased preference for renting versus owning one’s home. Aging population, the lifestyle choices of many millennials, and economic factors have made rental housing an increasingly popular choice. Twin Cities Apartments: Under Construction and Completed In the Twin Cities, developers have responded to the surge in demand for rental housing by developing more rental housing—most commonly high-amenity, market rate apartments. Condominium development has lagged—partly because of reduced demand, but also because production has been constrained by state statutes that govern developer liability. If liability statutes are loosened, that would open the door to increased condominium production. Apartment development has been largely focused in the strongest urban locations in the Metro—most notably downtown Minneapolis and St Paul, and strong urban transit and commercial nodes. There has been some suburban apartment development as well, and suburban development is increasing. Twin Cities Apartments: Eastern Metro Construction Activity, 2016 Source: Colliers International The surge in apartment supply has not yet quenched the demand. From the 12 months from Fall, 2015 through Summer, 2016, over 5,000 new units were constructed in the Twin Cities metro, and close to 4,000 units were already scheduled to be delivered in the 12 months through Summer, 2017. Twin Cities Apartments: Average Rent and Vacancy Apartment rents have continued to rise. Vacancy rates continue to be low overall, but a bifurcation has emerged between Class A and Class C buildings. Perhaps because there has been little construction of non-luxury apartments, there is a particularly low Page 40 vacancy rate in pre-1970s apartment buildings (98.7%), which are predominantly Class C buildings. The average vacancy rate in apartment buildings built after 2000 (mostly Class A buildings) is now over 5%. Market Dynamics – Mendota Heights As indicated in the following chart and map, the suburban communities around Mendota Heights are experiencing some apartment development in recent years. (Mendota Heights is in the S. St. Paul/Eagan Submarket in the following chart.) Apartment Unit Completions by Year Source: Colliers International Multifamily (MF) Apartment Construction around Mendota Heights Since 2010 Source: CoStar Market indicators. Demand for existing multifamily development seems strong. Although Costar only tracks two of the four existing apartment buildings in Mendota Heights, those buildings experience very low vacancy. The housing that was built at The Village at Mendota Heights was sold and occupied, even though some of it came online just before the start of the recession. Mendota Heights Apartment Vacancy Source: Costar Rents for multifamily units have been increasing steadily and in 2016 are at $1.10 per square foot. Mendota Heights Apartment Asking Rents (per Square Foot) Source: CoStar The market is strong enough to have attracted new market rate multifamily housing. A four story apartment building with 139 units is under construction near Hwy 110 and Dodd. It overlooks Dodge Nature Center and will be connected via pedestrian bridge to Mendota Plaza. Additional apartment and condo development seems likely to be supported by the market in certain locations in the community. But development opportunity sites in Mendota Heights are hard to find. Page 41 Development Considerations Strengths and weaknesses. Mendota Heights has important locational strengths and weaknesses for attracting housing development, and residential population. Strengths include:  Its stable single family neighborhoods  Its central location in the metropolitan area, with excellent transportation connections in all directions.  Proximity to both downtown St. Paul and downtown Minneapolis.  High quality schools, including three high schools—Henry Sibley, and St. Thomas Academy, and Visitation—which have regional reputations.  Good quality neighborhood retail at Highway 100 and Dodd, including the unique retail environment offered by The Village, a mixed- use shopping area north of Hwy 110 and Dodd.  High quality natural amenities including Dodge Nature Center, two golf courses, lakes and other natural areas, and proximity to the Mississippi River and trails. Challenges include:  Limited options for transit service are available.  Lack of retail goods and services, restaurants and entertainment, beyond those that are available at Highway 110 and Dodd Road. Development opportunities. Because Mendota Heights is fully developed, there is little opportunity for additional development of single family homes. Because there are few new home opportunities this close to the center of the metro, homes that are developed would likely be quite marketable. The proposed At Home Apartments development at Highway 110 and Dodd Road shows that Mendota Heights can attract the type of high amenity apartment construction that is being built in other parts of the region. It will build on the success of the housing that was built at The Village in Mendota Heights. It’s notable that new housing is being concentrated at the location in Mendota Heights where there are the strongest retail amenities and dining opportunities. Additional apartment development at this commercial node would likely be attractive and marketable, if suitable sites can be identified or assembled. Other locations where housing development may be viable in the coming decades include the following.  Underdeveloped locations near Augusta or Lemay Lake.  Existing golf course land, if its financial viability declines in the future. The attractiveness of existing housing in Mendota Heights, and the ability to attract new housing, would benefit from steps taken to strengthen the amenity base—particularly with respect to transit availability, and retail, dining and entertainment options. Strengthening these amenities may be important to maintaining Mendota Heights desirability and attractiveness as the tastes and demographic character of the Twin Cities evolves over the coming decades. Page 42 Retail Market Context Existing Conditions A city’s retail areas play an important role in its identity and attractiveness. Retail development in Mendota Heights is almost entirely focused at the crossroads of Highway 110 and Dodd Road. Two retail areas are present at this intersection – The Village at Mendota Heights, north of Hwy 110 at Dodd, and Mendota Plaza, across Hwy 110 to the south. These developments have distinctly different characters. The Village at Mendota Heights. The Village at Mendota Heights was developed over the period of 2001 to 2007. It is a neighborhood center in its scale of development, and the type of stores that anchor the development. But it has a destination market draw. Many of its customers come from Eagan, or from east and west of Mendota Heights, arriving via Highway 110. The Village at Mendota Heights The Village is a mixed-use area of retail and office, townhomes and condominiums, senior apartments, and a park. A unique, “new urbanist” style of development, it is a high density, walkable area that provides the opportunity to live close to shopping and offices, or park in the one of the parking lots and stroll along storefront-style stores, offices and restaurants. This “experience retail” can retain its attractiveness through shifts in the retail landscape, because it has a character that cannot be replicated through online purchasing. Mendota Plaza. Mendota Plaza is a more traditional neighborhood center. It is a strip center anchored by a Walgreens, a natural food store, a fitness facility and a restaurant. It has 60,000 square feet of retail floor area with surface parking in front of the stores. It was renovated within the past ten years, and is currently undergoing an 11,000-square foot expansion in conjunction with the development of a four story, 139- unit apartment building just to the east of the existing development along Highway 110. A pedestrian bridge will connect the apartments across a wetland area to Mendota Plaza. Another key factor in the expansion is the addition of driveway access into Mendota Plaza from Hwy 110. Mendota Plaza A regional trail is being developed that will cross Highway 110 at this location via a tunnel under Highway 110. Connecting to the Mississippi River in one direction, and the City of Eagan in another, the trail will effectively connect the two retail areas for bicyclists and pedestrians. Page 43 Market Dynamics – Regional Competitive Retail Context. The location of Mendota Plaza and The Village at Mendota Heights, relative to other retail areas in the area, has an important impact on the opportunity for additional retail development in Mendota Heights. The Retail Context Map illustrates the shopping centers in and around Mendota Heights, which are tracked by Costar according to type of center. Centers are given circular symbols that are illustrative of the size of the center. Large circles indicate regional centers. Small circles illustrate neighborhood- oriented retail centers. The City of Eagan, south of Mendota Heights is becoming a destination retail powerhouse on the scale of Woodbury. It added a new major retail development, Central Park Commons, on the former Lockheed Martin site at Pilot Knob Road and Yankee Doodle Road, west of Interstate 35E. That development includes a Hy-Vee grocery store, Marshalls, and other destination retailers. Twin Cities Premium Outlets is located a little further south at the intersection of Highways 13 and 77. The new Vikings headquarters and training facility, to be located near Interstate 494 at the intersection of Dodd Road and Lone Oak Parkway, will include office, retail, residential, hospitality and a conference center, and will become a destination in the region. The Eagan Promenade offers another cluster of destination retailers and restaurants at Yankee Doodle Road, east of I-35E. The retail offerings at these centers draw shoppers from Mendota Heights. New retail development tends to build on existing retail strength. So the retail primacy of Eagan dampens the attractiveness of Mendota Heights for destination oriented retailers. To the east, along Robert Street in West St Paul, there is a less upscale set of destination retail areas. The section of Robert Street between Wentworth and Marie Avenues hosts a Walmart, Target, and Lowe’s. The Signal Hills Shopping Center is at South Robert Street and Butler Avenue. The competing destination retail areas in Eagan and West St Paul, along with a scarcity of suitable retail locations in Mendota Heights, make it difficult to expand the retail footprint in Mendota Heights. On the other hand, the distance from Mendota Heights retail areas to competing retail areas in Eagan and West St Paul buffer the Mendota Heights retail areas from competition, and protect their long-term viability— since neighborhood centers offer goods and services that people don’t generally drive great distances for. Retail Context Map Page 44 Regional market indicators. The Twin Cities retail market has been reaping the benefits of the economic recovery. Absorption of retail space has been strong over the past five years, to the point that average retail vacancy metro-wide is at a very low 3.6%. And retail development has followed, reaching a post-recession high in 2016. Retail Vacancy, Absorption and Deliveries Twin Cities Metro Source: Costar Average asking rents per square foot have remained pretty steady over the same period at around $13.50 per square foot. Retail Asking Rents Per Square Foot Twin Cities Metro Source: CoStar Market Dynamics – Mendota Heights Market indicators. Though limited in scale, the retail areas in Mendota Heights are outperforming the metropolitan area as a whole. Costar data shows that the retail areas at Highway 110 and Dodd Road have continued to attract retail shops and services to the point where there is no vacancy in the two retail centers. No new retail has been constructed over the past five years, but that will change with the addition to Mendota Plaza. Retail Vacancy, Absorption and Deliveries Mendota Heights Source: CoStar Asking rents at these centers, at around $15 per square foot, are higher than the metro average of $13.50 per square foot. Retail Asking Rents Per Square Foot Mendota Heights Source: CoStar Page 45 Development Considerations Strengths and weaknesses. The retail areas in Mendota Heights benefit from their visibility from the heavily traveled Highway 110 corridor. Highway 110 carries a daily traffic volume of 20,000 to 30,000 ADT (average daily trips). They are the first retail center of any size on Highway 110 after crossing the Mendota Bridge from Minneapolis or Richfield. They also benefit from their distance from competing retail areas. In a sense, their distance from the centers in Eagan and West St Paul gives them a monopoly on neighborhood goods and services for residents in the surrounding neighborhoods. These locational characteristics are likely to keep the areas strong into the future. Another foundational strength of Mendota Heights retail is the relatively high income of its residents, relative to the metro area. Residents have the purchasing power to support neighborhood retail goods and services, as well as some distinctive restaurants and night spots. Mendota Heights is more limited in its prospects for destination retail. It is not likely to be able to develop a strong destination retail area, given the strength of destination retail areas in the surrounding communities. Development opportunities. There are limited opportunities for additional retail in Mendota Heights, and these include:  At Mendota Plaza and The Village at Mendota Heights, limited opportunity may emerge for additional retail expansion, beyond what is already planned.  There is a daytime population at Mendota Heights Industrial District which is underserved by restaurants and retail amenities. Although land is not available that would support the development of a large- scale retail center, there are several locations where a small footprint of retail could be developed to serve the district. Prospects for retail growth would be strengthened by increased housing, particularly that which is in close proximity to the retail expansion area. Retail areas can also be strengthened by building additional connections to them. Increasing bike and pedestrian connections from neighborhoods to existing retail may bring a different type of customer traffic, and strengthen the appeal of Mendota Heights to families. Page 46 Industrial and Office Market Context Employment in Mendota Heights The Minneapolis–St. Paul economy continues to boast one of the lowest unemployment rates in the country, currently hovering around 3.4 percent. Over 28,000 jobs were added in the last 12 months, and the metropolitan area benefits from the headquarters of 16 Fortune 500 companies as well as large local employers like the University of Minnesota. The local workforce ranks 11th in the country in terms of education, with 41 percent achieving a bachelor’s degree or higher. The average annual household income is $69,000, topping the national average by 29 percent. Mendota Heights has a unique employment profile for a Twin Cities suburb. Businesses in Mendota Heights offer a high number of good-paying jobs. And there are almost two jobs in Mendota Heights for every employed person who lives in Mendota Heights. While some jobs are in neighborhood serving retail businesses, and in its educational institutions, the great majority of jobs in Mendota Heights are in the industrial facilities and offices in the City’s industrial and office areas. Industry mix. Mendota Heights has a quite different business profile than the metropolitan area as a whole. It has a relatively small footprint in sectors that are commonly strong, such as health care, educational services, and retail. It has an unusual concentration of businesses and employment in the following industrial sectors:  Transportation and Warehousing  Administration and Support  Professional, Scientific, and Technical Services  Finance and Insurance Source: OnTheMap, US Census Bureau 0.0%5.0%10.0%15.0% Transportation and Warehousing Construction Administration & Support Management of Companies Wholesale Trade Finance and Insurance Professional, Scientific, Technical Services Accommodation and Food Services Retail Trade Educational Services Manufacturing Other Sectors Health Care and Social Assistance Industry Sectors, Mendota Heights & Metro Area MSP MSA Mendota Heights Page 47 Inflow/Outflow. Most Mendota Heights workers commute to jobs outside of Mendota Heights. Of the roughly 5,500 workers who live in Mendota Heights, almost 95% go to work at a location outside the City. Around 300 Mendota Heights residents work at a business in Mendota Heights. Mendota Heights Job Inflow/Outflow Source: OnTheMap, US Census Bureau Location of industrial and office development. The majority of employment in Mendota Heights is focused in two distinct areas—the Mendota Heights Industrial District, and the Centre Pointe Business Park. Businesses in the Mendota Heights Industrial District (MHID) offer over 7,000 principal jobs. The MHID is home to a mix of industrial and office developments. Industrial development (that is, a facility that includes a warehouse or production component in addition to any finished office space) is most common. But there are also a number of buildings that are strictly office buildings, without a warehouse component. Industrial and Office Context Map Source: Mendota Heights Assessor Data The Centre Pointe Business Park offers around 800 jobs. The business park was developed in the 1990s and 2000s, and is comprised entirely of office buildings. Public benefits of employment areas. The Mendota Heights Industrial District offers a greater job density than many comparable industrial areas. This is partly due to the prevalence of office buildings in the District. Industrial and office jobs tend to pay a living wage which are higher on the average than jobs in some other sectors such as retail stores and services. Jobs per Acre Source: OnTheMap, US Census Bureau 0 2 4 6 8 10 12 14 16 18 Mendota Heights Industrial District Burnsville Cliff Road Eagan Dodd Road Cottage Grove Business Park Page 48 The Mendota Heights Industrial District is also an important contributor to the tax base. Industrial Market – Regional Metropolitan Area. The Twin Cities is a growing region with a vibrant and diversified economy—factors which support a positive long-term outlook for industrial development in the region. Industrial Absorption & Deliveries: Twin Cities Source: Costar Market conditions have strengthened in the industrial market. Metro-wide, there has been positive and strengthening absorption of industrial space over the past five years. New development of industrial space region-wide is at around 3 million square feet per year over the last four years. That’s up from around 0.5 million square feet per year in the preceding three years. But there’s still room to grow, since the historic average is around 5 million square feet of new industrial space per year. The ongoing absorption of industrial space over the last few years demonstrates a growing demand for the space, which manifests itself in two ways. First, the vacancy rate for industrial property has dropped over the past few years to under 5%. Industrial Vacancy: Twin Cities Source: Costar And second, average rents have been gradually rising, to a current blended rent rate of $6.50 per square foot. Industrial Asking Rents: Twin Cities Source: Costar Increasing rents lead to the development of new space, since stronger rents support a financial return for new development. South Central Submarket. Mendota Heights is in the South Central industrial submarket of the Twin Cities, as defined by Costar. The South Central Submarket encompasses cities such as West St Paul, South St Paul, Inver Grove Heights, Eagan, Apple Valley and 0.0 0.2 0.4 0.6 0.8 1.0 1.2 Land Value per acre Taxes per acreValue Compared to Mendota HeightsIndustrial Comparison Areas Mendota Heights Industrial District Burnsville Cliff Road Eagan Dodd Road Cottage Grove Business Park Page 49 Burnsville, which are situated south of the Minnesota River and west of the Mississippi. The South Central Submarket is performing very similarly to the Twin Cities market as a whole, with an overall vacancy rate that has dipped to around 4%. Average asking rents are around $6.30, which is a little lower than the Twin Cities average rent. New industrial development in the South Central Submarket is coming online more slowly than in the metro area overall. Only three quarters of the last 12 have seen 100,000 or more square feet of new industrial product. Industrial Market – Mendota heights Strengths and weaknesses. Industrial development in Mendota Heights is located almost entirely in the 425- acre Mendota Heights Industrial District. Strengths and weaknesses of the area were assessed by a recent survey of stakeholders as part of the creation of the Mendota Heights Industrial District Redevelopment Plan. Strengths included:  Centrality of the location in the region  Airport proximity and access  Connection to regional transportation network  Flat topography  Well buffered from residential areas  Utility availability  Reasonable tax rate  Diversity of tenants in the district This impressive set of positive attributes makes the area highly attractive for industrial businesses. The district also has some weaknesses.  Limited opportunity for on-site facility expansion  Lack of retail or dining amenities  Absence of sidewalks  Airport noise  Limited transit access for workers Market indicators. Overall, these attributes result in strong utilization of the industrial space in the District, which has seen positive absorption over the last three years. The vacancy rate has correspondingly declined to around 3%, which is lower than that of the metropolitan area as a whole. Industrial Vacancy Mendota Heights Industrial District Source: Costar Area demand has also resulted in an increase in average asking rents in recent years to over $10 per square foot. Industrial Asking Rents Mendota Heights Industrial District Source: Costar Development considerations. The Mendota Heights Industrial District is attractively positioned for continued business occupancy, but there is not a lot of opportunity for new industrial development. Some properties can accommodate facility expansion, and that may well be pursued by the property owner or business tenant. The Mendota Heights Industrial District Redevelopment Plan makes several recommendations for actions to strengthen the area’s attractiveness to industrial users, and invite building renovation and improvement. These include:  Explore ways to communicate, brand, and promote the Industrial District  Consider city policies toward redevelopment incentives to potentially implement on future projects Page 50  Consider investments in broadband and other technology infrastructure as necessary to ensure the area is competitive and serves the business needs Office Market – Regional The office buildings in the Mendota Heights Industrial District, and the Centre Pointe Business Park operate in a different competitive environment than the industrial facilities. Vacancy rates tend to be higher in office properties. There is a cachet effect that groups office development into clusters or districts within the metropolitan area. Transit availability, and proximity to amenities, are more important for attracting office tenants than they are for attracting industrial businesses. The following chart shows Twin Cities office space absorption over the past 9 quarters. There is a clear pattern of positive absorption of space, aside from the most recent quarter. This has brought the overall Twin Cities office vacancy rate down to around 7.5%. Metropolitan area rents vary by building class. They currently average around $25 per square foot for Class A office space, around $17.50 for Class B space, and around $15 for Class C space. Office Market – Mendota heights The office buildings in the Mendota Heights Industrial District and Centre Pointe Business Park are 20 years old on average. Together they offer around 1.4 million square feet of floor area. Buildings range in size from 6,000 square feet to 130,000 square feet. Many buildings are occupied by a single tenant, and many others have multiple tenants. Market indicators are mixed for the office buildings in Mendota Heights. The vacancy rate in 2016 is lower than the metropolitan area as a whole. But rents are also lower than the metropolitan average. Office Absorption, Deliveries and Vacancy Mendota Heights Source: Costar Office Average Asking Rent Mendota Heights Source: Costar Development considerations. The office districts in Mendota Heights have some strengths and face some challenges. As is true for industrial businesses, centrality in the region, and access to the freeway transportation network are significant strengths. However, the weaknesses of the area are more detrimental to the viability and attractiveness of the area to office tenants than they are for industrial Page 51 businesses. The relative lack of amenities in or near the Mendota Heights Industrial District was cited as a particular concern by real estate professionals that were interviewed for this report. Offices at the Centre Pointe Business Park are better situated in this respect than those in the Mendota Heights Industrial District. Other liabilities, such as airport noise, and the limited nature of transit service, have a dampening impact on the Mendota Heights office market. The Mendota Heights Industrial District Redevelopment Plan suggested consideration of guiding land along Interstate 494 for office development over the long term, as opposed to a mix of office and industrial. This may strengthen the attractiveness of the area to office users, and clarify an office-oriented brand for the southern part of the industrial district. On the other hand, the market support for additional office development in the area is not assured. To support continued viability of the office areas in Mendota Heights, consideration could be given to actions such as:  Strengthen the office identity and branding of the southern part of the Mendota Heights Industrial district. Let the district be part of a broader Eagan/Mendota Heights office district  Build the amenity base of the area with the addition of some retail and restaurants, even if the opportunities for doing this are limited Page 52 Request for Planning Commission Action MEETING DATE: April 25, 2017 TO: Planning Commission FROM: Tim Benetti, Community Development Director SUBJECT: Title 12-1D-15: Signs – Proposed Ordinance Amendment to Allow Pylon or Freestanding Signs in the B-1 Limited Business and B-1A Business Park Districts Introduction City staff is requesting the Planning Commission consider amending certain parts of City Code Title 12- 1D-15: Signs, specifically allowing pylon or freestanding signs in the B-1 Limited Business and B-1A Business Park Districts. Background Staff was recently contacted by the owners of the 1200 Center Pointe Curve multi-tenant offices to install a new freestanding sign in the front-yard of the commercial property. The property is situated in the B-1 Limited Business District. Upon review of the Sign Code, it was discovered that although nameplate and business signs (wall signs) were allowed, pylon and freestanding signs were not identified or allowed under this B-1 or the related B1-A Business Park zoning districts. The relevant sign code text is noted as follows: I. Signs In B And I Districts: 2. Pylon Or Freestanding Sign: The erection of one pylon type sign for any single lot in the B-2, B-3, B-4 and I districts is permitted under the following provisions: a. A pylon or freestanding sign shall not be higher than twenty five feet (25') above the average grade level at the base of the sign. b. No part of the pylon or freestanding sign shall be less than ten feet (10') from lot lines nor less than five feet (5') from any driveway or parking area. c. No part or projection from a pylon or freestanding sign shall be less than fourteen feet (14') vertical distance above the grade level at the base of the sign. d. The gross area of any surface of a pylon or freestanding sign shall not exceed one hundred (100) square feet. The areas of the city where the B1 and B1-A districts lie are identified on the attached copy of the city’s Official Zoning Map. Page 53 Staff attempted to explore and research why these two commercial zoning districts were specifically excluded from these types of sign, but no explanation or reasoning could be found. A quick search of an old 1981 Zoning Ordinance manual in our offices revealed the language is virtually the same as it reads today when addressing freestanding signs under these commercial (B-2, B-3, B-4 and I) districts. As a result of a comment made by the owner of 1200 Centre Pointe, Staff did inspect other similar B-1 and B1-A zoned uses throughout the city, and soon discovered a number of these businesses have different styles and levels of freestanding signs. There appears to be no records however, of any variances being issued to allow such signs. Attached to this memo are some street-view images of certain businesses located either in the B1 or B1-A district where freestanding signs currently exist on said properties. Discussion The City can use its legislative authority when considering action on a code amendment request and has broad discretion; the only limitations are that actions must be constitutional, rational, and in some way related to protecting the health, safety and general welfare of the public. Recommendation It is Planning Staff’s professional opinion that it seems highly unusual to see these two commercial/business districts excluded from the freestanding sign allowances normally afforded to other (and somewhat similar) commercial/business districts. Therefore, we would suggest the Planning Commission initiate the process of amending the City Code in allowing such signs in the B-1 and B1-A zones. Staff recommends the Planning Commission initiate a discussion to the proposed code amendment; suggest or provide any standards or limitations (if any) you wish to see in the proposed sign code text amendment; and direct staff to bring this item back for further consideration at a future Planning Commission meeting. Action Required No official action is needed; just a simple majority vote directing appropriate city staff to proceed with researching and preparing new language for future consideration. Page 54 OFFICIAL ZONING MAP O Administered By: City of Mendota HeightsPlanning Department1101 Victoria CurveMendota Heights, MN 55118(P) 651.452.1850(F) 651.452.8940 www.mendota-heights.com NOTE: This map cannot be fully understood without reference to the Mendota Heights Zoning Ordinance and Comprehensive Plan. In addition, zoning and comprehensive plan designations are subject to amendments by the procedures included in the City Code. Please consult with the City Planner for interpretation of this information. ZONING DISTRICTS D A K O T A C O U N T YD A K O T A C O U N T Y Sources: City of Mendota Heights, Dakota County Last Revised: 10/23/2015Document Path: I:\Planning\MAPS\Zoning_updated format.mxd I N V E R I N V E R G R O V E G R O V EH E I G H T S H E I G H T S E A G A N E A G A N M E N D O T A M E N D O T A L I L Y D A L EL I L Y D A L E S U N F I S H S U N F I S H L A K E L A K E W E S T W E S TS T. PA U L S T. PA U L S T. PA U L S T. PA U L Pickeral Lake Mississippi RiverSomerset Country Club Par 3 Golf Course Somerset Elementary School Henry Sibley High School Dodge Nature Center Friendly MarshFriendly Hills Middle SchoolSt. Thomas Academy Convent of theVisitation School I-494 Rogers Lake Dodd Rd.I-35E TH 110TH 110 Resurrection Cemetery Mendakota Country Club I-35E TH 13T H 5 5TH 13Gun Club LakeMinnesota RiverFort Snelling State Park Lake Augu s ta L a k e L eM a y Acacia Park Cemetery Lexington Ave.Pilot Knob Rd.Mendota Heights Rd.Victoria Rd.Delaware Ave.Dodd Rd.Wentworth Ave. Marie Ave. City HallPolice Dept. Public WorksGarage R-1 One Family Residential R-1A One Family Residential R-2 Two Family Residential R-3 Multiple Family Residential MR-PUD Medium Density Residential HR-PUD High Density Residential Residential: B-1 Limited Business B-1A Business Park B-2 Neighborhood Business B-3 General Business B-4 Shopping Center Commercial: MU-PUD Mixed Use I Industrial State Park Other:Mendota Elementary School City of Mendota HeightsDakota County, Minnesota Page 55 Mendota Corporate Center 1110 HWY 110 Howry Residential Services – 1150 Centre Pointe Curve Page 56 Peterson Dental 1031 Mendota Heights Road MH Executive Plaza – 750 Plaza Drive South Page 57 Farmers Insurance – 750 Plaza Drive South Signart – 2170 Dodd Road Page 58 910 Sibley Memorial Hwy. 880 Sibley Memorial Hwy. Page 59