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HomeMy WebLinkAbout2018-040 (Findings of Fact, Conclusions and Order related to a Conditional Use Permit and Variance Requests for a multi-family condo project to be located at 107 3rd Street North (CPC Case No 2017-62)) RESOLUTION 2018-040 RESOLUTION ADOPTING FINDINGS OF FACT, CONCLUSIONS AND ORDER RELATED TO A CONDITIONAL USE PERMIT AND VARIANCE REQUESTS FOR A MULTI-FAMILY CONDO PROJECT TO BE LOCATED AT 107 3rd STREET NORTH CPC CASE NO 2017-62 BE IT RESOLVED by the City Council of Stillwater, Minnesota that the Finding of Fact, Conclusions and Order related to the Conditional Use Permit and associated Variance requests for 107 3rd Street North, as on file with the City Clerk, is hereby approved and authorizes the Mayor and City Clerk to sign the said Findings of Fact, Conclusions and Order. Adopted by the Stillwater City Council this 6th day of March, 2018. Ted Kozlowksi, Mayor ATTEST: Le)a)50t- Diane F. Ward, City Clerk STATE OF MINNESOTA CITY OF STILLWATER COUNTY OF WASHINGTON BEFORE THE CITY COUNCIL In Re: Browns Creek West LLC C/O Jon Whitcomb Multi-Family Condominium FINDINGS OF FACT Conditional Use Permit and CONCLUSIONS Associated Variances AND ORDER For 107 3rd Street North CPC Case No. 2017-62 The City Council convened a Public Hearing for Planning Case No. 2017-62 at 7:00 p.m. on February 21, 2018 at the Council Chambers in City Hall. The purpose of the Public Hearing was to consider a request for a Multi-Family Condominium Conditional Use Permit, and associated variances, to be located at 107 3rd Street North. At this Public Hearing, the City Council considered the oral report of Bill Turnblad, Community Development Director; testimony and exhibits submitted by Jon Whitcomb representing the Browns Creek West LLC ("Applicant"); the Staff Report dated February 20, 2018 by Abbi Jo Wittman, City Planner; January 10, 2018 Planning Commission meeting minutes; testimony of adjacent neighbors of the property in question; and the Planning file prepared by City Staff for the Application. The Planning Commission also held a Public Hearing and reviewed the case. This hearing was held on January 10, 2018. NOW, THEREFORE, based upon the documents that have been made a part of this file, upon the testimony of all those who offered it, and upon all the files, records, recordings and proceedings herein, the City Council makes the following: I. FINDINGS OF FACT 1. This property is located at 107 3rd Street North. 2. The property is zoned CBD (Central Business District). 3. In the CBD District,Multi-Family Residential developments are allowed by Conditional Use Permit. 4. The Applicant submitted a request for the City to approve: a) a Conditional Use Permit for a 11-unit residential condominium project; and b) a 10' variance to the 35' maximum height of a freestanding building in the CBDBT, for a 45' tall structure as measured from 3rd Street North; and c) a 1.5 story variance to the three story maximum height of a freestanding building in CBDBT for a 4 story building that includes an underground parking level; and d) a 15' variance to the 15' Front Yard setback for the construction of a 5' tall retaining wall on the southern property line, adjacent to Myrtle Street West; and e) a 5' variance to the 15' Front Yard setback for the construction of a 4' deep architectural component and garage entrance adjacent to Myrtle Street West; and f) a 10' variance to the 20' combined Side Yard Setback for the construction of the building and projecting balcony spaces; and g) a 15' variance to the 20' Rear Yard Setback for the construction of the building; and h) a 2' variance to the 3' maximum yard distance projection for necessary steps adjacent to 3rd Street North 5. City Code Section 31-207, Special use permit and conditional use permit, indicates a purpose "is to allow the integration of essential or desirable uses which may be suitable only in certain zoning districts or designed or arranged on a site in a certain manner". 6. City Code Section 31-207(d) indicates the Council must make findings that the proposed structure or use conforms to the requirements and the intent of the Zoning Chapter of the City Code, the comprehensive plan,relevant area plans and other lawful regulations; and any additional conditions necessary for the public interest; and the use or structure will not constitute a nuisance or be detrimental to the public welfare of the community. 7. City Code Section 31-208(a) indicates the purpose of a variance is to allow variation from the strict application of the terms of the Zoning Code where,by reason of the exceptional physical characteristics of the property, the literal enforcement of the requirements of this chapter would cause practical difficulties for the landowner. - 2 - 8. At the Planning Commission public hearing, a number of neighbors spoke out against the proposed Conditional Use Permit and associated variances. 9. At the City Council public hearing a number of neighbors spoke out against the proposed Conditional Special Use Permit and associated variances. II. CONCLUSIONS OF LAW 1. That this matter was properly before the City Council pursuant to the procedure set forth in the City Code. 2. That as the proposed use is not in conformance with the intent of the Zoning Code nor the Comprehensive Plan. 3. That the property owner has not established practical difficulties regarding the requested variances. III. ORDER IT IS HEREBY ORDERED 1. That the request for Multi-Family Residential Condominium Conditional Use Permit is hereby denied. 2. That the 10' variance to the 35' maximum height of a freestanding building in the Central Business District Blufftop overlay district is hereby denied. 3. That the 1.5 story variance to the three story maximum height of a freestanding building in the Central Business District Blufftop overlay district is hereby denied. 4. That the 15' variance to the 15' Front Yard setback for the construction of a 5' tall retaining wall on the southern property line is hereby denied. - 3 - 5. That the a 5' variance to the 15' Front Yard setback for the construction of a 4' deep architectural component and garage entrance is hereby denied. 6. That the a 10' variance to the 20' combined Side Yard Setback for the construction of the building and projecting balcony spaces is hereby denied. 7. That the a 15' variance to the 20' Rear Yard Setback for the construction of the buildinghereby is denied. 8. That the a 2' variance to the 3' maximum yard distance projection for necessary steps adjacent to 3rd Street North is hereby denied. Adopted by a '/ - / vote of the City Council this6th day of March, 2018. CITY OF STILLWATER Ted Kozlowski, Mayor ATTEST: ,ateI� ?M Diane F. Ward, Clerk EXHIBITS A. Staff report to the Planning Commission dated January 10, 2018 written by Abbi Jo Wittman, City Planner. B. The January 10, 2018 Planning Commission minutes. C. Staff report to the City Council dated January 16, 2018 written by Abbi Jo Wittman, City Planner. D. The January 16, 2018 City Council minutes. E. Staff report to the City Council dated February 20, 2018written by Abbi Jo Wittman, City Planner. F. The February 20, 2018 City Council minutes. - 4 - LEGAL DESCRIPTION Lots 2-3 except the South 23' of Lot 3, Block 14, Stillwater - 6 - ter n A L A [ (y G M k N N h NO A PLANNING COMMISSION MEETING DATE: January 10,2018 CPC CASE NO.: 2017-62 December 13, 17: Planning Commission(tabled) APPLICANT: Browns Creek West,LLC, property owner REQUEST: Consideration of a Conditional Use Permit and associated Variances to develop an 11 unit condominium complex on the vacant property located at 107 3rd Street North, at the Northeast corner of the intersection of 3rd Street North and Myrtle Street West ZONING: Commercial Business District/ CBD Height Overlay COMP PLAN: Downtown Mixed Use PREPARED BY: Abbi Jo Wittman,City Planner ._. 0 ft:1j E 41410411401404144 s .. BACKGROUND In 2009 the HAF Group applied for a Special Use Permit and associated variances to construct a new post office on the subject property. While an 8'variance to the height for a EXHIBIT A Case No.2017-62 CPC:December 13,2017 Page 2 of 10 tower feature,it was limited to the steeple/tower area. Additional variances were granted for the construction of the structure to be located 12' from the southern property line and 15' from the western property line. All approved variances were contingent on the development of the structure as proposed. In 2016 the applicant,in coordination with Trinity Lutheran Church,submitted a request to rezone this land to the Central Business District's Bluffside Height Overly District. This action was denied by the City Council at the recommendation of the Planning Commission and City staff. This application was originally scheduled for the December 13,2017,Planning Commission meeting. However,the item was postponed at the developer's request. SPECIFIC REQUEST Browns Creek West LLC has applied for: 1. A Conditional Use Permit to allow for the construction of an 11-unit condo complex on this site. All units will be contained in a single building. 2. Variances necessary for the construction of the condo building. The following associated variances have been requested: City Code Section 31-403(b)(5)i, CBDBT, Freestanding Building • A 10' variance to the 35' maximum height of a freestanding building in the CBDBT,for a 45' tall structure as measured from 3rd Street North; and • A 1.5 story variance to the three story maximum height of a freestanding building in CBDBT for a 4 story building that includes an underground parking level. City Code Section 31-317(c),Massing Regulations • A 15' variance to the 15' Front Yard setback for the construction of a 5' tall retaining wall on the southern property line,adjacent to Myrtle Street West;and • A 5' variance to the 15' Front Yard setback for the construction of a 4' deep architectural component and garage entrance adjacent to Myrtle Street West; and • A 10' variance to the 20' combined Side Yard Setback for the construction of the building and projecting balcony spaces;and • A 15' variance to the 20' Rear Yard Setback for the construction of the building. City Code Section 31-514,Subd. 3(a), Projection into required yard areas • A 2' variance to the 3' maximum yard distance projection for necessary steps adjacent to 3rd Street North PROPOSAL DETAILS Case No.2017-62 CPC:December 13,2017 Page 3 of 10 The specific proposal includes: ■ Four stories of residential units that includes: o The first story, off of 3rd Street North,would include: ■ Two, approximately 1,200 square foot,one bedroom units. These units would each have a deck, one facing to the north and the other to the east. • One, approximately 2,000 square foot,two bedroom and two bathroom unit with east facing balcony. • One,approximately 2,500 square foot, two bath unit with an east/southern facing balcony o The second and third stories would each contain three units with associated balconies. While one of the units would be approximately 2,000 square feet,the other two bedroom,two bath units would be approximately 2,500 square feet. o The fourth story would include an(at least) two bedroom,two bath unit with its own balcony. This unit is approximately 3,000 square feet • There would be a centralized commons area with two sets of stairs and an elevator. The elevator and both stair wells are proposed to go to the fourth story where there would be common roof access on the south. The north roof access would be for mechanical equipment. • As indicated,all parking is proposed to be located underground. There will also be storage areas in the basement. This is not considered a story as greater than half of the wall spaces are subsurface. CONDITIONAL USE PERMIT REGULATIONS AND ANALYSIS Section 31-207 indicates in approving a Special Use Permit,it must be determined by the Planning Commission that: The proposed structure or use conforms to the requirements and the intent of this[zoning] chapter, and of the comprehensive plan, relevant area plans and other lawful regulations. Any additional conditions necessary for the public interest have been imposed and use/structure will not constitute a nuisance or be detrimental to the public welfare of the community. Zoning Code The zoning chapter requirements applicable to this Special Use Permit(SUP) are: Use: Residences of all classes are permitted by Conditional Use Permit in the Central Business District. Throughout the latter part of the 2000s the City saw the addition of nearly 3000 residential units to the community core. This condo building would function the same as Terra Springs, Mills on Main, and the Lofts in that there would be a Case No.2017-62 CPC:December 13,2017 Page 4 of 10 common association to maintain all jointly owned areas but that each condo unit would be independently owned. While the building will be situated directly adjacent to a single family residential structure, there are multiple family uses in the converted church at the southwest corner of this intersection. Additionally, the next residential property to the north and located on the same side of the same block is zoned Medium Density Residential). While the use is consistent with the neighborhood but,Building Official Cindy Shilts has indicated the building will need to have a fire suppression system installed and meet all building, plumbing,mechanical/fuel gas,accessibility, and energy codes. Density: Generally speaking, density in the Central Business District is governed by the property's ability to meet the development controls in place. Average densities in the Central Business District vary: Address Common Name Residential Density 610 Main Street North Terra Springs 17 units/acre+/- 501 Main Street North The Lofts of Stillwater 43 units/acre+/- 350 Main Street North Mills on Main 38 units/acre+/- 102+ 3rd Street South Steeple Towne 34 units/acre+/- 101 Olive Street East Runk Condos 27 units/acre+/- 301 3rd Street North Val Croix 32 units/acre+/- A density of 31 units per acre exists when comparing the three closest condo buildings (Steeple Towne, Runk Condos, and Val Croix);the total average of the six largest condo buildings is 32 units per acre. The applicant is proposed a density of(approximately)35 units per acre. Therefore,while the 11 units is generally consistent with condo developments in the neighborhood and the CBD,not all development controls (such as height) can be met. Ten units would result in a density of 32 units/acre. Off-Street Parking and Loading: The following off-street parking spaces are required to be placed onsite: Use Requirement Units Total Parking Required Units 1.5 spaces per unit(one of 11 16.5 spaces Multiple (rounded to 17 spaces) which needs to be covered) Family Guests11 3.66 spaces _ 1 space for every three units (rounded to 4 spaces) Total 21 spaces The applicant is proposing the creation of 24 onsite parking spaces in an underground facility. Case No.2017-62 CPC:December 13,2017 Page 5 of 10 The plan does require the removal of seven quasi-public parking spaces on and adjacent to this property. The northerly access on to rooftop of the municipal parking ramp would remain open. However,modifications to the parking lot design and curb would need to be made. City Engineer Shawn Sanders has indicated a condition of approval that unused areas of the parking lot and drive lanes (public and private) shall have the asphalt and the curbs removed and restored with turf, except the area where concrete sidewalk should be added. Traffic and Circulation: No traffic study or circulation assessment has been submitted for this project. However, in order to capitalize on the grade change and provide for underground, onsite parking, access at Myrtle Street is the only viable option. The parking entrance/exit,centered on the property,will be located approximately 45' from the intersection. City Engineering staff has indicated the property owner should explore shifting the egress point to the east. Currently there is a 20' grade separation between the driveway of the property at 110 Myrtle Street East and the subject property. The current plan proposes a five foot retaining wall to be located on the eastern property line. If the garage access point was shifted to the east,the retaining wall would need to be larger,thereby creating greater site line challenges for the adjacent property owner (to the east). Stormwater Management Practices: Given its proximity to the adjacent property and the topography,City Engineer Shawn Sanders has indicated: • no storm water runoff can drain on to the adjacent property to the east;and • stormwater from the new building shall be connected to an existing storm sewer pipe; and • the existing storm sewer in the parking lot shall be removed by the developer. Projects within the Middle St. Croix Watershed Management Organization(MSCWMO) must meet the full review requirements of the MSCWMO Plan. The project does trigger full MSCWMO review and it is likely the project will qualify for flexible treatment options that preclude stormwater infiltration. Approval of the SUP will be contingent on MSCWMO stormwater management plan review and approval. Design Review: The applicant has not submitted a Design Permit for review by the Heritage Preservation Commission. This creates a challenge in the review and approval processes. If the Planning Commission and Council find the use consistent with the standards set forth for Use Permitting and finds practical difficulty warrants the issuance of variances, it can lead to a false impression of approvals granted for a design that has not been determined to be consistent with the Downtown Design Review District guidelines. Therefore,staff would recommend the applicant submitt for review and approval a Design Permit prior to the Planning Commission acting on the variance(s) or that the variance is contingent on an approved Design Permit. Case No.201.7-62 CPC:December 13,2017 Page 6 of 10 The Design Permit will need to include significantly greater detail than is currently shown in the plans. This will include,but not be limited to,materials,color,lighting, and signage. Landscaping and signage: No landscaping or signage plan has been proposed. The Comprehensive Plan calls for primary landscaping improvements along Myrtle Street West and secondary landscaping improvements along Third Street North. Landscaping should be required on all elevations,while preserving clear corners at the intersection. A condition of approval should include the submittal of a landscape and signage plan to the HPC for review and approval of a Design Permit prior to the issuance of the building permit. Comprehensive Plan &Relevant Area Plans The 2030 Comprehensive Plan(2030 CP) indicates Downtown Stillwater could support up to 250 housing units by 2018. Though the plan notes there is a demand for more units priced under$250,000 as well as for rental,land and construction costs have driven up home prices in the downtown;. The 2030 CP further indicates aging baby boomers and empty nesters will continue to trade down to smaller,more efficient units. The 2 bedroom,2 bathroom designed units are similar to most of the units developed in Terra Springs (2004-2008),the Lofts of Stillwater (2005), and Stillwater Mills (2006). However, omitting the largest and smallest units,the average size of the proposed units is 2,240 square feet. The average two bedroom,between all three aforementioned condo complexes, is 1,550 square feet. That said,since the date of adoption of the memo,no additional housing units were created in the Central Business District. Therefore, the construction of 11 new residential units will help support the 2030 CP findings of increasing housing units downtown. Other Lawful Regulations Condominium residential units in the Central Business District generally do not conflict with other lawful regulations. VARIANCE ANALYSIS The purpose of the variance is to"...allow variation from the strict application of the terms of the zoning code where the literal enforcement...would cause practical difficulties for the landowner." In addition to the requirements,below,Section 31-208 indicates "[n]onconforming uses or neighboring lands, structures or buildings in the same district or other districts may not be considered grounds for issuance of a variance" and"...a previous variance must not be considered to have set a precedent for the granting of further variances. Each case must be considered on its merits." Section 31-208 further indicates: Case No.2017-62 CPC:December 13,2017 Page 7 of 10 • Economic considerations alone do not constitute practical difficulties. • A previous variance must not be considered to have set a precedent for the granting of further variances. Each case must be considered on its merits. The applicant must demonstrate that: The variance is in harmony with the general purposes and intent of this chapter. The general purpose and intent of the Zoning Code is to regulate and restrict use of land for the protection of public health,safety and welfare. The purpose of the Front,Side, and Rear Yard Setbacks,as well as projection into required yard areas,is to provide for unencumbered space to regulate proportionality and to provide for adequate infiltration,landscaping, and design elements consistent with the historic core. The proposed setback variances are in harmony with the general purposes and intent of the zoning chapter as they help ensure design consistency with historic development patterns on the properties in the vicinity,and are allowing for adequate landscaping and infiltration on a largely developed lot. The purpose of the CBD Height Overlay District is to preserve and enhance the essential character of the downtown and that structures be limited in height in order for structures close to the river not to rise above the height of structures farther from the river. This helps create a stepped-pattern in the"downtown bowl". At 45' in height to the deck of the mansard roof,the total height of the building will be 50' to the very top of the structure. The height will be taller than the (now vacant) property to the west (with a maximum height of 2 stories and 35') as well as the main portions (up to the cupolas) of the two historic churches in the vicinity. The height variances are not in general harmony with the Zoning Code. The variance is consistent with the comprehensive plan. With certain conditions,such as landscaping,the setback variances could be found to be consistent. However,the property is located on two prominent view corridors,as noted on the Gateway and Viewsheds Figure in Chapter 6 of the Downtown Plan. A 2030 CP policy is to"continue to refine and administer design guidelines so that the integrity of the existing and surrounding buildings is maintained and new development is of a height, size,and design compatible with the best examples of the existing development". When combined with the objectives to"reinforce...landmarks,steeples, and significant structures along gateway corridors," it is clear the height variance is not consistent with the comprehensive plan. The applicant for the variance establishes that there are practical difficulties in complying with this chapter. "Practical difficulties,"as use in connection with the granting of a variance, means that all of the following must be found to apply: Case No.2017-62 CPC:December 13,2017 Page 8 of 10 The property owner proposes to use the land in a reasonable manner for a use permitted in the zone where the land is located, but the proposal is not permitted by other official controls; The use of the property for residences with onsite,underground parking has been shown to be reasonable in this location. The plight of the landowner is due to circumstances unique to the property and that are not created by the landowner;and Setbacks in the Central Business District are nearly nonexistent for many properties. However,the modern zoning and building codes suggests separation between buildings and from the building to the street is desirable. As adjacent property is setback and not built right to the property line, the uniqueness is aiming to find reasonable setbacks given the existing setbacks,the topography and the staggered nature of the setbacks on Myrtle Street West. Regarding the maximum height variances,certain improvements integral to the building are allowed to project above the roofline and the maximum allowable height. This includes elevator bulkheads as well as stairwells. The applicant has shown what these three components would look like if they were carried above the roofline of a three-story building. However, elevator access and stairwells to access rooftops are not customary nor required;each unit does have balcony or patio space with views of the river. Additionally,if the rooftop is not used as communal space,the building code would only require a single access point. It is the desire of the applicant to not only have communal rooftop access but to also have the penthouse suite. While argument can be made about the economics of the development site, economics alone cannot be grounds for granting a variance. The variance, if granted, will not alter the essential character of the locality. The addition of any structure on this site will alter the character of the neighborhood. However, a design that conforms to the Zoning Code and the Downtown Design Review District guidelines would not significantly alter the character of the locality. As the development is not proposing to meet the maximum height allowances and the Heritage Preservation Commission has not reviewed the design,the current design will alter the essential character of the locality. PUBLIC COMMENT Comments have been received from the following at are attached for the Commission's review: Dick Sjoberg,property owner at 1023ra Street North. Mr. Sjoberg expresses concern for the height of the proposed structure,its impact to the established historic structures (particularly the churches and their steeples),traffic concerns at the three-stop intersection, Case No.2017-62 CPC:December 13,2017 Page 9 of 10 as well as variances to the property's setbacks. He requests the Planning Commission deny the application, requesting a redesigned structure that supports a better transition in this neighborhood. Elaine Connors, 116 3r21Street South. Ms. Connors states the height of the new building would overwhelm the existing streetscape and that the design is not consistent with the historic nature of the neighborhood. She also indicates there are already pedestrian safety concerns at the corner of 3rd and Myrtle Streets. Cameron Murray,350 Main Street North. Mr. Murray points out that there will increased traffic in the morning and evenings in this area. He acknowledges staff's suggestion to move the access to the east but suggests the developer explore the possibility of underground connections to the existing parking ramp. Doug Johnson,Trinity Lutheran Church Congregational Council, 115 4th Street North. Mr. Johnson indicates Trinity Church supports the recommendation of city staff to deny the variance application. He notes this is consistent with the congregation's position in early 2017 when Gail M. Olson,then Congregational Council President,submitted similar comments for CPC Case No. 2016-43. ALTERNATIVES As the request to extend the height by greater than 10% of the maximum allowable height in the CBDBTD,the City Council must be the final authority on deciding upon the request1. However, the Planning Commission has the authority to act on the Conditional Use Permit, reserving the right to forward a recommendation to the City Council in circumstances where accountability can be an issue. A. Approval If the Planning Commission finds the 11-unit residential condo proposal to be consistent with the provisions of the CUP process,the Commission could move to approve the CUP with or without conditions. If the Planning Commission finds practical difficulties do exist for the 11-unit to have specific Front,Side and Rear Yard variances, they move to approve these variances,with or without conditions. If the Planning Commission finds practical difficulties do exist for the 11-unit residential condo to be four stories in height, they could forward to the City Council a favorable recommendation of approval,with or without conditions. B.Table If the Planning Commission finds that the application is not complete enough to make determination of practical difficulty and compliance with the City Code Section 31-31-208(g) Case No.2017-62 CPC:December 13,2017 Page 10 of 10 Conditional Use Permit, it could continue the review for additional information. C.Denial If the Planning Commission finds no practical difficulty exists and the proposal is not consistent with the provisions of the CUP regulations,the Commission should deny the CUP and forward to the City Council a recommendation of denial. The Commission should indicate a reason for the denial and determine whether or not the denial is with or without prejudice. FINDINGS AND RECOMMENDATION As noted,residential condo complexes in downtown Stillwater are uses found consistent with the Comprehensive Plan and all other relevant area plans. While the use is consistent with the Zoning Code,not all development controls are proposed to be met,certain variances are requested,and the design has not been reviewed and approved by the City's Heritage Preservation Commission. Therefore,staff finds the Case No. 2017-62 is not consistent with the provisions set forth for Conditional Use Permits,practical difficulty cannot be determined for setback variances, and would recommend tabling consideration until after the City Council has acted on the height variances and a Design Permit has been submitted for review and approval by the Heritage Preservation Commission. On the basis the application in not in harmony with the general purposes of the Zoning Code,consistent with the Comprehensive Plan,not has established practical difficulty for the addition of the fourth story, staff would recommend the Planning Commission recommend to the City Council denial,with prejudice,of both height variances. ATTACHMENTS Site Location Map Narrative Submission(ARCHNET) Certificate of Survey Site Plans (2 pages) Floor Plans (5 pages) Elevations (2 pages) Views (9 pages) Public Comment(6 pages) eater IMF IIOTKPLICE OF MINNEIOTA PLANNING COMMISSION MEETING MINUTES January 10,2018 REGULAR MEETING 7:00 P.M. Chairman Collins called the meeting to order at 7:01 p.m. Present: Chairman Collins, Commissioners Fletcher, Hade, Hansen, Kocon, Lauer and Siess; Councilmember Menikheim Absent: None Staff: Community Development Director Turnblad, City Planner Wittman APPROVAL OF MINUTES Possible approval of minutes of December 13, 2017 regular meeting Motion by Commissioner Hansen, seconded by Commissioner Kocon, to approve the minutes of the December 13, 2017 regular meeting. Motion passed 7-0. OPEN FORUM There were no public comments. PUBLIC HEARINGS Case No.2017-62: Conditional Use Permit(CUP) and Variances to build a new residential condominium at the property located at 107 Third Street North. Brown's Creek West LLC, property owner(continued from December 13 meeting). City Planner Wittman explained the request.Browns Creek West LLC has applied for: 1)a Conditional Use Permit (CUP) to allow for the construction of an 11-unit condo complex; and 2) Variances necessary for the construction of the condo building as follows: a 10' variance to the 35' maximum height of a freestanding building, for a 45' tall structure as measured from Third Street North; and a 1.5 story variance to the three story maximum height for a four story building that includes an underground parking level; and a 15' variance to the 15' front yard setback for the construction of a 5' tall retaining wall on the southern property line, adjacent to Myrtle Street West; and a 5' variance to the 15' front yard setback for the construction of a 4' deep architectural component and garage entrance adjacent to Myrtle Street West; and a 10' variance to the 20' combined side yard setback for the construction of the building and projecting balconies; and a 15' variance to the 20' rear yard setback for the construction of the building; and a 2' variance to the 3' maximum yard distance projection for necessary steps adjacent to Third Street North. EXHIBIT B Planning Commission January 10, 2018 Ms. Wittman went on to explain that the specific proposal includes four stories of residential units, a centralized commons area with two sets of stairs and an elevator. The elevator and both stair wells are proposed to go to the fourth story where there would be common roof access on the south. The north roof access would be for mechanical equipment. All parking is proposed to be located underground. There will also be storage areas in the basement. This is not considered a story, as greater than half of the wall spaces are subsurface. Ms. Wittman added that eight letters have been received from nearby property owners with concerns about height, safety and impact on the streetscape. Staff finds the CUP is not consistent with the code, practical difficulty cannot be determined for setback variances, and recommends tabling consideration until after the City Council has acted on the height variances and a Design Permit has been submitted for review and approval by the Heritage Preservation Commission. On the basis the application in not in harmony with the general purposes of the Zoning Code,consistent with the Comprehensive Plan and has not established practical difficulty for the addition of the fourth story, staff recommends the Planning Commission recommend to the City Council denial, with prejudice, of both height variances. Chairman Collins asked if a traffic study has been done in the area. Ms. Wittman replied that a traffic study has not been done recently. Roger Tomten, ARCHNET, architect for Jon Whitcomb, owner and developer, said the applicant met with residents of Steeple Towne Condo on December 6 to get their comments. He showed a movie indicating the proposed building from various viewpoints and related ways in which it complies with the Comprehensive Plan. He described the materials to be used in the building and emphasized that all required parking will be accommodated underground on site.Access from Myrtle Street is the most logical solution. He presented several schematics of gateways and viewsheds and stated that only one of the lots falls into the 35 feet blufftop district but they are using that as the criteria for this project since the building encompasses all four lots. The applicants feel the variances are in harmony with the general purposes and intent of the zoning codes and the Comprehensive Plan and that the hardship is the severe topography on the site. Chairman Collins asked if the applicants considered downsizing the units to reduce the mass of the building.Mr.Tomten replied the size is market-driven.The size of the units could be reduced a couple of feet but to create the pedestrian feel and scale of the structure,they felt the sizing was appropriate. Commissioner Kocon asked why have three staircases and an elevator for rooftop access?Mr.Tomten replied that modern rooftops are a desirable amenity.The occupant load triggers the need for a second stairwell according to code. Commissioner Siess asked when the applicants will bring the project to the HPC for design review. Mr. Tomten responded that the HPC looks at whole building design including colors, so it may be a month or so before it is brought to the HPC. Chairman Collins opened the public hearing. Scott Wallace, 112 Third Street South in the Steeple Towne Building,speaking on behalf of the Steeple Towne Association, voiced concern about the overall height of the building and visual impact;traffic safety at an already confusing intersection; and green space and zero lot line development. Mark Balay, 110 East Myrtle Street,next door to the site, said during winter the Myrtle Street hill can be difficult to navigate. He feels multi-family housing is a good fit for the site, but feels the 10' side Page 2 of 11 Planning Commission January 10, 2018 yard variance would put the building 5' from his property and he doubts they could put up their building wall without actually excavating onto his property.He believes floor plans could be modified to remove 5'. He feels that what it boils down to is money, not fitting into the neighborhood. The applicants should look at moving the building back and reducing the square footage because the variances are not warranted. Chairman Collins closed the public hearing. Commissioner Hade said he opposes the project because of its visual impact.The residents would like to keep their view of the river. Additionally, as cars turn from Myrtle into the underground parking they will have to wait on the steep hill for a garage door to go up, which could affect downtown accessibility. Commissioner Kocon stated he supports the CUP and feels condos are appropriate, but the variances are not palatable and the plan does not address traffic issues. To avoid some of the variances, the developer will probably have to remove some square footage. The height variance for him is a deal breaker. He feels the variances are profit-driven. Chairman Collins stated that the intersection of Myrtle and Third is one of the worst in the city.Traffic definitely is an issue. His other concern is the height and mass of the building. He agreed with Commissioner Kocon that there are too many variances. Commissioner Hansen agreed. He feels it's a bad intersection already, and the building is too tall for the space. He is not against putting a building there and feels the look of the building as designed is top notch but the height is an issue. Having underground parking is great. He would like to see the HPC and Council review the project and see a traffic study. Commissioner Siess commented that she struggles with the design but feels the HPC will deal with the design. She is fine with tabling it. Commissioner Fletcher said she leans toward denial because she does not see a practical difficulty for any of the variances. She is not even sure the Commission has the ability to approve the CUP because it has not gone through design review by the HPC yet. Motion by Commissioner Kocon, seconded by Commissioner Fletcher, to deny without prejudice the CUP,and to deny without prejudice the setback variances for Case No.2017-62,to build a new residential condominium at the property located at 107 Third Street North, and to recommend that the City Council deny with prejudice the height variance. Motion passed 7-0, all in favor. Case No. 2017-65: Special Use Permit (SUP) to operate a Segwav tour business from 204 Main Street North in the CBD District. Steve Gnan, property owner and James Linden, applicant. City Planner Wittman explained the request. James Linden operates a guided Segway Tour business in Sheridan, Wyoming, and Grand Marais, Minnesota. He would like to relocate his business to Stillwater, offering guided tours three times daily, from April 1 through October 31, 2018. The tours would accommodate up to six guests, for a total of seven segways during each tour.The applicant has indicated that they may offer for sale t-shirts, sweatshirts, and other related items. Stillwater Segway Tours is proposed operate out of a 10x12' steel frame and polyester sided tent at the southern side of Let There Be Light,approximately 10' from the Commercial Street sidewalk.The business would also Page 3 of 11 Planning Commission January 10, 2018 have a 6X12' aluminum sided trailer for storage of the segways when not in use. The trailer would be situated approximately 18' from the Commercial Street sidewalk. The applicant is proposing two, 20 square feet banners, and a single, six square foot sidewalk sign. Ms. Wittman explained the proposed routes for the segways. She stated she talked with the Minnesota Department of Transportation (MnDOT)which would not require any permitting for this use. She has not talked with the Wisconsin Department of Transportation (WisDOT). The Department of Natural Resources (DNR) may be favorable to use permitting for this commercial business operating on their property. On the basis this Seasonal Recreational Business is not consistent with the Comprehensive Plan, would impact pedestrian safety in the downtown core and historic residential neighborhoods, and that the congregation of segways on public sidewalks and trails will interrupt the smooth flow of traffic, creating a public nuisance, staff recommends denial. Commissioner Kocon asked about use of City streets and sidewalks. City Planner Wittman replied that the tour into the historic neighborhoods is the one that could have more impact because sidewalks are narrower. The other place that could become congested is getting over to the trail on the pedestrian plaza. Commissioner Fletcher asked, if accountability is an issue, could the Commission refer this to the Council?Ms. Wittman replied that the Planning Commission may refer any item to the Council. James Linden, applicant, 1548 Oakridge Lane, Houlton, said the tour routes proposed are not set in stone. His intent was to bring this to the City so the City would have some control of the operation. He has operated segway tours in Sheridan, Wyoming and Grand Marais, Minnesota and there has not been one complaint in four years. Chairman Collins asked if the trailer would be removed every night. Mr. Linden replied it and the gazebo would be there for the season. Commissioner Hade asked if he is still operating in the two other cities. Mr.Linden said no,his intent is to move the business to Stillwater. Commissioner Siess asked if he has considered any other sites. Mr. Linden said no, sites are very limited. Commissioner Kocon mentioned that the downtown design guidelines will probably not allow the gazebo as proposed. Mr. Linden replied it is more attractive than a typical art fair tent. He went on to state that each rider gets 15-20 minutes training. They must be 14 years old minimum with a parent or 16 years with parents' consent. Commissioner Siess said if a segway tour group is on a sidewalk, and a child on a tricycle is coming in the opposite direction, who wins? Mr. Linden responded that he realizes they have to have a good rapport with the residents and the City. They will opt to pull off to the side for a stroller or tricycle. Tours are single file and are all guided. Ms. Wittman added that State statute requires users of segways to yield the right-of-way to pedestrians and bicyclists. She reviewed recommended conditions of approval if the Commission decides to approve the request. Commissioner Hade remarked that sidewalks are already crowded on weekends. Page 4 of 11 Planning Commission January 10, 2018 Chairman Collins opened the public hearing. There were no public comments. Chairman Collins closed the public hearing. Commissioner Kocon noted the gazebo and signs proposed are not consistent with ordinances. He would like to limit the use to trails, not sidewalks. Otherwise he could see the proposal working. Chairman Collins said he too would prefer the segways stay off the sidewalks. He is willing to support the SUP on a trial basis for a year. Commissioner Hade said the segways would be appropriate single file for streets but not sidewalks. Commissioner Hansen said he supports the use of segways on trails but not on sidewalks or streets. Commissioner Siess pointed out there are safety issues, and training for riders is difficult. The proposed training area is space-limited. If they could just go on the trails it would be fine. Commissioner Fletcher agreed with the stated issues, saying she would prefer the segways to remain on the trails. Motion by Commissioner Fletcher, seconded by Commissioner Kocon, to approve Case No. 2017-65, SUP to operate a Segway tour business from 204 Main Street North,with the 17 conditions recommended by staff, modifying Condition #4 to state"Segways shall be kept in an enclosed trailer when the business is not in operation" and modifying Condition #7 to state "Tours shall follow designated routes on the Brown's Creek Tour and the St. Croix Bridge Crossing Tour along designated trails. Tours shall cross Main Street and utilize the pedestrian plaza to access trails"and adding Condition#18 to state"This permit shall not become effective until the business has obtained applicable DOT and DNR use permits and licenses to operate on State trails."Motion passed 6-1, with Commissioner Siess voting nay. Case No. 2017-66: Special Use Permit (SUP) for rooftop mechanical improvements for Lakeview Hospital,located at 927 Churchill Street South in the RB District.Keith Messinger,representing Lakeview Hospital, property owner and Jason Gottwalt, representing Dunham Engineers, applicant. City Planner Wittman reviewed the case. Lakeview has requested an amended Special Use Permit for: 1) the replacement of the rooftop fluid cooler with an 18' tall cooling tower to be located near the southern portion of the building, which has been installed; and 2) the replacement of two rooftop air handling units on the clinic portion of the facility. The City was unaware that the rooftop cooling tower had been installed. On the basis that with certain conditions,the application conforms to the standards set forth for SUPs, staff recommends approval with six conditions, modifying Condition #4 to state that the landscaping plan should be for all facades and all mechanical equipment, and in cases where landscaping is not possible,that rooftop changes be explored. Commissioner Hade asked about noise complaints. City Planner Wittman said previous complaints were from patients; the Police Department does not have a record of any external complaints. Commissioner Hansen said considering how many times the Commission has discussed rooftop units at this facility, management should have known they would need to apply for a permit. He noted the Commission has heard complaints from neighbors about noise. He asked if there is a plan for future improvements. City Planner Wittman responded that the Commission could request a replacement Page 5 of 11 Planning Commission January 10, 2018 schedule for existing mechanicals.If the mechanicals are replaced 1:1,that would be permitted through the building department. If it were an expansion, it would come before the Commission. The old unit was 44" and the new one is 72.5" so this is an expansion. Commissioner Siess commented that the Commission also is seeing it because it's in a residential area. John Scheller, Lakeview Hospital Facilities Manager, and Jason Gottwalt, Mechanical Engineer, explained the project. Mr. Scheller said he is new to the hospital. He learned that the cooling tower, which is already installed, is to serve the surgical area. It is the quietest cooling tower they could find. The units proposed for the clinic area are to replace existing units that are failing, in an effort to improve indoor air quality. Mr. Gottwalt added that the rooftop units are very comparable. They did a sound study on the cooling tower,which is quieter by 6 decibels or 25%of the old unit that was there, which had drew complaints from patients. The rooftop units are larger to comply with new requirements. The old ones were not compliant with the current code. Both have been submitted to Department of Labor and Industry. Rooftop units are on order and scheduled to be replaced this winter. The cooling tower installation was done on a fast pace so they could start it this fall and be ready for next spring. Commissioner Kocon asked about the manufacturer's DBA rating for the units. Mr. Gottwalt replied the DBA at the unit is 76.Given the distance and screening of the building it will be under the 50 DBA limitation. 50 DBA is quieter than conversation. Commissioner Siess noted the staff report says the units will be increasing in size to accommodate the removal of the condensing unit and air intake. Mr. Gottwalt responded the rooftop units are 1:1 replacement. They are significantly bigger but noise output is less because they use newer technology. Ms. Wittman added that each of the units that will be removed had the air intake and compressor - they will be replaced with one much larger unit that is a single package. Chairman Collins asked if there are any other smaller options. Mr. Gottwalt replied they are all fairly comparable in height. Chairman Collins opened the public hearing. Tony Beyer, 904 Churchill Street, directly across from the Clinic, said he would like the noise mitigated and the aesthetics improved to make it fit better into the neighborhood. He would like the SUP to address the north side of the property in the same way it is addressing the south and east sides with regard to landscaping and noise mitigation. The one rooftop unit is visible from all windows of his house. When he purchased his property,he could not see the clinic at all because there were homes across the street (before the hospital acquired those properties). They have only graded the property and planted grass seed -that is the extent of the landscaping that has taken place there. There is also a cluster of ground level mechanicals on the north side of the building and when it gets cold they are remarkably loud. He would request as a condition of the SUP that all the hospital's mechanicals be required to conform to existing noise limits. Chairman Collins closed the public hearing. Page 6 of 11 Planning Commission January 10, 2018 Commissioner Hansen asked how many rooftop units are at the hospital.Mr.Gottwalt said it is dozens. There are some units as old as 30-40 years. Mr. Scheller stated there is no long term plan to remove or replace any more units. The hospital has purchased land elsewhere for a future move. City Planner Wittman noted that what causes the most noise on the north side is a pressure valve attached to the boiler system. In extreme cold it goes off intermittently and releases at a high pitched sound for various periods of time. Commissioner Hansen asked if it is possible to do any screening for something of that nature. Mr. Scheller responded he is not familiar with that noise and will have to investigate it tomorrow. Mr. Beyer said the colder it gets, the more frequently it releases, but it is not high pitched, it sounds like a dump trunk idling at the curb. Motion by Commissioner Siess, seconded by Commissioner Fletcher,to recommend that the City Council approve Case No 2017-66, SUP for rooftop mechanical improvements for Lakeview Hospital, 927 Churchill Street South,with the six conditions recommended by staff,modifying Condition#4 to state"A comprehensive landscape plan for all four sides"and modifying Condition#7 to state"The property owner shall screen the new rooftop heating units (RTU) on the north elevation. Screening shall be included in the building permit submittal and shall be installed within three months after the installation of the new RTU."Motion passed 7-0, all in favor. Case No. 2017-67: Final Planned Unit Development(PUD), Preliminary Plat, Zoning Map Amendment and any related Variances for the pr perty located at 8911 Neal Avenue in the AP District. Ken Heifort, property owner and Todd Ganz, Integrity Land Development, applicant. Community Development Director Turnblad reviewed the application. Todd Ganz, Integrity Land Development, is proposing to develop Phase Two of the 26.1 acre Heifort Hills Planned Unit Development(PUD). The 24 home sites located in the 15.2 acre first phase were platted as the Ponds at Heifort Hills. This,the second phase, also has 24 home sites, which are spread across 10.9 acres of land that will be platted as Heifort Hills Estate. All of this phase lies within the Natural Environment Shoreland District of South Twin Lake. Consequently, development must either be on one acre lots or must occur as a Shoreland PUD. The developer in this instance has chosen to develop according to the Shoreland PUD standards and is requesting: 1)Rezoning of the second phase's 10.92 acres from AP, Agricultural Preservation to RB, Two-Family Residential; and 2) Final Shoreland PUD approval for the second phase; and 3)Preliminary plat approval for Heifort Hills Estate. The proposed Final PUD, rezoning and preliminary plat for Phase Two represent a good solution to the need for balancing the density envisioned by the Comprehensive Plan and the protective goals of the South Twin Lake Shoreland Overlay District. Therefore, staff recommends approval of the requests with 18 conditions. Commissioner Hansen asked how many homes could be built on the neighboring 3.8 acre property. Mr. Turnblad replied it is possible to do a PUD on that property if access could be given somehow. A PUD would allow higher density. Todd Ganz, Integrity Land Development, offered to answer questions. Chairman Collins opened the public hearing. Page 7 of 11 Planning Commission January 10, 2018 Jason Kehren, 8820 Neal Avenue North, across the street, asked if water and sewer will extend up to his property. Mr. Turnblad stated that one condition of approval requires the developer to stub sewer and water to Mr. Kehren's property line. Chairman Collins closed the public hearing. Commissioner Siess asked the developer to comment on renaming the street. Mr. Ganz replied they are open to changing the name. Motion by Commissioner Kocon, seconded by Commissioner Hade, to recommend that the City Council approve Case No.2017-67,Final PUD, Preliminary Plat, Zoning Map Amendment and related Variances for the property located at 8911 Neal Avenue, with the 18 conditions recommended by staff. Motion passed 7-0, all in favor. Case No. 2017-68: Zoning Text Amendment (ZAT)to allow retail uses in the BP-I District by Special Use Permit for the property located at 1815 Greeley Street South. Michael McGrath property owner. Community Development Director Turnblad explained that Michael McGrath,doing business as 1815 Greeley, LLC,has applied for a Zoning Text Amendment(ZAT)to allow for limited retail uses to be permitted by Special Use Permit in the BP — I Business Park Industrial zoning district. If the ZAT were approved,he would then proceed with the SUP process for the Commission's consideration of a retail store not exceeding 10%of the total floor area of the existing building he owns, located at 1815 Greeley Street South. Staff finds that the preservation of industrial-zoned properties for industrial use is in the public interest,but that allowing retail space of no greater than 10%of an industrial building's total area by SUP, up to 4,000 square feet, would not significantly change the nature of the industrial building. Additionally, staff finds that allowing limited retail of this nature would help to satisfy a demand for retail space while still preserving the majority of industrial-zoned properties for industrial use. Staff finds the proposed ZAT is not in general conflict with the principles,policies, and land use designations set forth in the Comprehensive Plan. Therefore, staff would recommend the Planning Commission forward a recommendation of approval to the City Council. Commissioner Kocon pointed out the issue in this case involves a relative or complementary use. He questioned whether it should be a requirement that the retail use be related to the industrial use. Mr. Turnblad it could be required that the retail use be associated with another use on site and not be the only use. Commissioner Fletcher remarked she doesn't see the need to be more restrictive because the SUP application will come to the Commission. Commissioner Siess pointed out that industrial use occupies a fairly small percentage of property in Stillwater. She does not favor allowing retail because retail may go in several other zoning districts. Commissioner Kocon agreed, adding that if the industrial use goes away, the commercial use would likely go away too and there would logically then be a new industrial application for some other use. Tim Sauro stated he works for Mike McGrath. The use that occupies the building now is similar to what they had last 15 years with Roof Depot. Sew With Me is doing repairs on equipment and not a lot of retail customers come in to buy supplies, so they feel it's similar to what has been there. It's only 3,000 square feet of finished space. Page 8 of 11 Planning Commission January 10, 2018 Chairman Collins opened the public hearing. There were no public comments. Chairman Collins closed the public hearing. Commissioner Siess noted that the experience of the senior living ZAT near Our Saviors Church showed her that the ZAT process is a slippery slope. The industrial section in the City is extremely small and creates a lot of revenue, and there are other areas for retail in Stillwater. She feels this is not what the industrial zone was designed for. Motion by Commissioner Hansen, seconded by Commissioner Hade,to recommend that the City Council approve Case No.2017-68,ZAT to allow retail uses in the BP-I District by SUP for the property located at 1815 Greeley Street South, modifying the recommended approval to state"allowing for retail space of no greater than 10%of the total building area or 4,000 square feet, whichever is less." Motion passed 6- 1, with Commissioner Siess voting nay. Case No.2017-70: Variances to the proposed single-family structure for the property located at X Linden Street in the RB District. Jessie Bostrom, property owner and Paul Bruggeman, applicant. City Planner Wittman stated that Paul Bruggeman is requesting approval of: 1) a 5' variance to the 25' rear yard setback for the construction of a rear deck on a single-family home; and 2) a 3.9% variance to the 25% structural coverage for the construction of a single-family residence with rear deck and attached two-stall garage. Staff finds practical difficulty has been established for the 3.9% Variance to the structural lot coverage allowance and recommends approval of this Variance. However, staff also finds that practical difficulty has not been established for the 5' encroachment into the rear yard setback area. Therefore, staff recommends denial of this Variance. Jessie Bostrom, applicant, stated that other lots in this area have structures closer to the rear yard lot lines. With the deck they still would be maintaining a 20' setback which is consistent with existing conditions on the street. Commissioner Kocon asked if they considered switching the floor plan to put the deck behind the garage. Ms. Bostrom said they considered that, but they would have had to put a door on the dining room, which would eliminate one of the only full walls and limit practical use of the dining room. Chairman Collins opened the public hearing. Becky Dawson Cox,417 West Cherry Street,told the Commission drainage is an issue on the property. The lots slope down to her garage. She asked that the Commission deny the variance. Chairman Collins closed the public hearing. Commissioner Kocon stated he does not see practical difficulty with regard to the deck location. Commissioner Siess said she wants the applicant to know that the Commission is required to find a practical difficulty in order to grant a variance. She struggles with the deck variance. Commissioners Fletcher and Lauer agreed they could see no practical difficulty. Motion by Commissioner Kocon, seconded by Commissioner Lauer, to approve a Variance of 3.9% lot coverage and to deny the requested 5' rear yard setback for Case No.2017-70, Variances to the proposed Page 9 of 11 Planning Commission January 10, 2018 single family structure for the property located at X Linden Street. Motion passed 6-1 with Commissioner Hade voting nay. UNFINISHED BUSINESS Case No. 2017-57: Special Use Permit (SUP) Amendment to the fencing requirements for the property located at 1677 Orleans Street West. St.Croix Village, LLC,property owner and Juanita Pekay,applicant. City Planner Wittman reviewed the request. At the November 2017 Planning Commission meeting, the Commission tabled consideration of CPC Case No. 2017-57, a request for an amendment to an existing Special Use Permit(SUP)to allow for a five foot tall, chain-link fence to replace the existing privacy fence at 1677 Orleans Street West. The Commission directed the property owner to work with the neighbors to develop an alternative solution to the proposed chain-link fence. The property owner has submitted a request to replace the 6' cedar fence on the northern property boundary with a 6' cedar privacy fence. While the applicant has support from the four of the six adjacent property owners, the other two property owners do not need to concur, as this 1:1 replacement is consistent with the conditions of approval of the original SUP. The applicant is further requesting replacement of the eastern and southern fencing, bordering adjacent multiple family dwellings, with a 5-6' chain-link fence. This request is supported by the adjacent property owners and management firms. Staff finds that the modified proposal is consistent with the SUP regulations and recommends approval with eight conditions, permitting a minimum 60" chain-link fence on the east and south property boundaries. Chairman Collins asked if there is any time limit for completion. Ms. Wittman replied the Zoning Administrator has been working with the property owner on the issue for almost a year. A timeline will be based on negotiations the property owner makes with enforcement staff. Commissioner Siess stated if the property owner replaces what they have right now, it's climbable. Ms. Wittman said it could conceivably be climbed.The traditional 2-sided design could be considered climbable. Commissioner Siess questioned whether the Commission should be more specific about a non-climbable design. Juanita Pekay, applicant, 7063 Terraceview Lane, Maple Grove, informed the Commission that the non-climbable design was a condition that the neighbors north of the property had requested because they did not want the townhomes built at the time they were built. The neighbors reported that when originally installed,the nicer side of the fence faced the street,which at the time did not meet the code and the neighbors had the City require that the prior owners turn the fence around and face it in the direction it is facing now. Her company has owned the property for 2.5 years. She understands that the single family homes to the north wanted the barrier.They are not concerned with the east and south side and would support the chain link on those sides. The chain link fence would eliminate the blind spot between the garages and fence, and be lower cost and maintenance. There is 216 feet of fencing that the City would like to be double sided or turned around. The neighbors absolutely want the nicer looking side on their side. She asked that the Commission permit the 5' chain link fences on south and east side and allow her to do the 6' cedar fence with the nicer side facing the north so it will make the neighbors happy. Ms. Pekay added that she still has not been advised what the compliance issue is. City Planner Wittman replied the issue surfaced because the fence is in disrepair.Usually when issues like this come up, an enforcement letter sent is sent to the property owner. She assumes that process was followed. Page 10 of 11 Planning Commission January 10, 2018 Motion by Commissioner Hansen, seconded by Chairman Collins, to recommend approval of Case No. 2017-57, as modified by the applicant, with the eight conditions recommended by staff, modifying Condition #4 to state "The 6' cedar fence adjacent to the public rights-of-way and the properties located at 1573 and 1567 Driving Park Road shall be constructed with the finished side facing Orleans Street." Motion passed 7-0, all in favor. ITEMS OF DISCUSSION Small Wireless Facilities Future Zoning Text Amendment City Planner Wittman noted that staff is working with representatives of other communities that have historic districts to look at language for wireless right-of-ways in historic districts. Planning Commission Annual Case Report City Planner Wittman provided the Planning Commission Annual Case Report. ADJOURNMENT Motion by Commissioner Lauer, seconded by Commissioner Fletcher, to adjourn the meeting at 11:01 p.m. All in favor, 7-0. Respectfully Submitted, Julie Kink Recording Secretary Page 11 of 11 r_ water l R `H. R :. A f 0:. A. N N F D 0 A CITY COUNCIL MEETING DATE: January 16,2017 CPC CASE NO.: 2017-62 January 10,2017: Planning Commission December 13, 17: Planning Commission(tabled) APPLICANT: Browns Creek West,LLC, property owner REQUEST: Consideration of a Planning Commission recommendation regarding a Variance to the height of a future structure to be located on vacant property located at 107 3rd Street North, at the Northeast corner of the intersection of 3rd Street North and Myrtle Street West ZONING: Commercial Business District/ CBD Height Overlay COMP PLAN: Downtown Mixed Use PREPARED BY: Abbi Jo Wittman, City Planner T • kri BACKGROUND EXHIBIT C Case No.2017-62 CC:January 16,2018 Page 2 of 6 In 2009 the HAF Group applied for a Special Use Permit and associated variances to construct a new post office on the subject property. While an 8' variance to the height for a tower feature,it was limited to the steeple/tower area. Additional variances were granted for the construction of the structure to be located 12' from the southern property line and 15' from the western property line. All approved variances were contingent on the development of the structure as proposed. In 2016 the applicant,in coordination with Trinity Lutheran Church,submitted a request to rezone this land to the Central Business District's Bluffside Height Overly District. This action was denied by the City Council at the recommendation of the Planning Commission and City staff. At that time,the Council adopted Ordinance No. 1091,adding the three most northerly parcels into the Blufftop Height Overlay District. This application was originally scheduled for the December 13,2017,Planning Commission meeting. However,the item was postponed at the developer's request. At their last regularly-scheduled meeting,the Planning Commission considered the request for a height variance and other associated variances associated with the application for a multiple- family structure Use Permit. SPECIFIC REQUEST Browns Creek West LLC has applied for a variance necessary for the construction of a future condo building. Specifically, the applicant is requesting consideration of a 10' variance to the 35'maximum height(City Code Section 31-403(b)(5)(i)for a 45' freestanding building located in the Central Business District Blufftop District. While the applicant's request is for a 43.5' tall building,the applicant's measurement of the average elevation is not consistent with the City's interpretation of the average elevation of the building. VARIANCE ANALYSIS The purpose of the variance is to"...allow variation from the strict application of the terms of the zoning code where the literal enforcement...would cause practical difficulties for the landowner." In addition to the requirements,below,Section 31-208 indicates "[n]onconforming uses or neighboring lands,structures or buildings in the same district or other districts may not be considered grounds for issuance of a variance" and"...a previous variance must not be considered to have set a precedent for the granting of further variances. Each case must be considered on its merits." Section 31-208 further indicates: • Economic considerations alone do not constitute practical difficulties. • A previous variance must not be considered to have set a precedent for the granting of further variances. Each case must be considered on its merits. Case No.2017-62 CC:January 16,2018 Page 3 of 6 The applicant must demonstrate that: The variance is in harmony with the general purposes and intent of this chapter. The general purpose and intent of the Zoning Code is to regulate and restrict use of land for the protection of public health,safety and welfare. The purpose of the CBD Height Overlay District is to preserve and enhance the essential character of the downtown and that structures be limited in height in order for structures close to the river not to rise above the height of structures farther from the river. This helps create a stepped-pattern in the"downtown bowl". At 45' in height to the deck of the mansard roof,the total height of the building will be 50' to the very top of the structure. The height will be taller than the (now vacant) property to the west(with a maximum height of 2 stories and 35') as well as the main portions (up to the cupolas) of the two historic churches in the vicinity. The height variance not in general harmony with the Zoning Code. The variance is consistent with the comprehensive plan. As the Downtown Chapter of the 2040 has not been adopted,the City must review the request in conjunction with the adopted goals and policies of the 2030 Comprehensive Plan(adopted in 2010). A 2030 CP policy is to"continue to refine and administer design guidelines so that the integrity of the existing and surrounding buildings is maintained and new development is of a height, size,and design compatible with the best examples of the existing development". When combined with the objectives to "reinforce...landmarks,steeples, and significant structures along gateway corridors," it is clear the height variance is not consistent with the comprehensive plan. The applicant for the variance establishes that there are practical difficulties in complying with this chapter. "Practical difficulties,"as use in connection with the granting of a variance, means that all of the following must be found to apply: The property owner proposes to use the land in a reasonable manner for a use permitted in the zone where the land is located, but the proposal is not permitted by other official controls; The use of the property for residences with onsite,underground parking has been shown to be reasonable in the Central Business District. However,the Planning Commission has determined the proposed structure for multiple family (condo) use is not reasonable, given a number of variances would be required to complete the project. The plight of the landowner is due to circumstances unique to the property and that are not created by the landowner;and Certain improvements integral to the building are allowed to project above the roofline and the maximum allowable height. This includes elevator bulkheads as well as stairwells. The applicant has shown what these three components would look like if they were carried above the roofline of a three-story building. However,elevator access Case No.2017-62 CC:January 16,2018 Page 4 of 6 and stairwells to access rooftops are not customary nor required unless that rooftop is proposed to be utilized for all occupants of the buidling; each unit does have balcony or patio space with views of the river. Additionally,if the rooftop is not used as communal space, the building code would only require a single access point. It is the desire of the applicant to not only have communal rooftop access but to also have the penthouse suite. While argument can be made about the economics of the development site, economics alone cannot be grounds for granting a variance. The variance, if granted, will not alter the essential character of the locality. The addition of any structure on this site will alter the character of the neighborhood. However, a design that conforms to the Zoning Code and the Downtown Design Review District guidelines would not significantly alter the character of the locality. As the development is not proposing to meet the maximum height allowances and the Heritage Preservation Commission has not reviewed the design,the current design will alter the essential character of the locality. PUBLIC COMMENT Comments have been received from the following at are attached for the Commission's review: Dick Sjoberg, property owner at 1023ra Street North. Mr. Sjoberg expresses concern for the height of the proposed structure (including photographs of the existing,38' tall telephone poles on this site),its impact to the established historic structures (particularly the churches and their steeples),traffic concerns at the three-stop intersection,as well as variances to the property's setbacks. He requests the Planning Commission deny the application, requesting a redesigned structure that supports a better transition in this neighborhood. Elaine Connors, 116 311Street South. Ms. Connors states the height of the new building would overwhelm the existing streetscape and that the design is not consistent with the historic nature of the neighborhood. She also indicates there are already pedestrian safety concerns at the corner of 3rd and Myrtle Streets. Cameron Murray,350 Main Street North. Mr. Murray points out that there will increased traffic in the morning and evenings in this area. He acknowledges staff's suggestion to move the access to the east but suggests the developer explore the possibility of underground connections to the existing parking ramp. Doug Johnson,Trinity Lutheran Church Congregational Council, 115 4th Street North. Mr. Johnson indicates Trinity Church supports the recommendation of city staff to deny the variance application. He notes this is consistent with the congregation's position in early 2017 when Gail M. Olson,then Congregational Council President,submitted similar comments for CPC Case No. 2016-43. Case No.2017-62 CC:January 16,2018 Page 5 of 6 Robert Hasel,114 3ra Street South. Mr. Hasel expresses concerns similar to other occupants of the Steepletown building(the rehabilitated Church at the SW corner of 3rd and Myrtle). He additionally raises the concern that HPC design review had not occurred prior to the use permit and variance proceedings. Brian Michael and Katie Elliot, 120 34 Street South. They further express similar comments to those noted,above. Scott Wallace,112 3ra Street South. Mr. Wallace further expresses similar comments to those noted,above. ALTERNATIVES As the request to extend the height by greater than 10% of the maximum allowable height in the CBDBTD, the City Council must be the final authority on deciding upon the requests. A. Approval If the Council finds the property owner has established practical difficulty for the 10' increase in height, the Council could move to approve the variance with or without conditions. B.Table If the Council finds that the application is not complete enough to make determination of practical difficulty,it could continue the review for additional information. C. Denial If the Council finds no practical difficulty exists,the Council should deny the variance 1. The Council should indicate a reason for the denial and determine whether or not the denial is with or without prejudice. FINDINGS AND RECOMMENDATION Planning Commission On the basis practical difficulty has not been established for the 10' increase in height,the Planning Commission recommends denial,with prejudice. Staff On the basis the application in not in harmony with the general purposes of the Zoning Code,consistent with the Comprehensive Plan,not has established practical difficulty for the addition of the fourth story, staff recommends denial of the height variance. ATTACHMENTS City Code Section 31-31-208(g) Case No.2017-62 CC:January 16,2018 Page 6 of 6 Site Location Map Ordinance No. 1091 Narrative Submission(ARCHNET) Certificate of Survey Site Plans (2 pages) Floor Plans (5 pages) Elevations (2 pages) Views (9 pages) Public Comment City Council Meeting January 16,2018 Board and the rest of the City seems archaic and out of touch. He would like more information on what qualifies for an adjustment. Councilmember Menikheim rescinded his motion to approve the sanitary sewer adjustments, and the seconder to the previous motion, Temporary Vice Mayor Junker, agreed. Motion by Councilmember Menikheim,seconded by Temporary Vice Mayor Junker,to table the possible approval of sanitary sewer adjustments to the January 30 meeting. Ayes: Councilmembers Menikheim,Weidner and Temporary Vice Mayor Junker Nays: None PUBLIC HEARINGS .seN..2117-. • . . i 'n. . •. i•e . r • _ -_ • B • . s' r--, W- • • .- 1m .wn-r for . Con•iti•nal Use P-rmit P •nd •ri.nce t• • il• a l -w - i_- i. •n. .miniuit , - • . .- I. . -. . 17T 'r• - • . i• ! - : p •' i . -. January 2.2018 meeting). Community Development Director Turnblad reviewed that Jon Whitcomb, Brown's Creek West LLC,has applied for a variance necessary for the construction of a condo building.The applicant is requesting a 10' variance to the 35' maximum height for a 45' freestanding building located in the Central Business District Blufftop District. While the applicant's request is for a 43.5' tall building, the applicant's measurement of the average elevation is not consistent with the City's interpretation of the average elevation of the building.Written concerns were received from seven residents. The Planning Commission, finding that practical difficulty has not been established for the 10' increase in height, recommended denial of the height variance,with prejudice. Their basis for the denial was the application is not in harmony with the general purposes of the Zoning Code, is not consistent with the Comprehensive Plan, and has not established practical difficulty for the addition of the fourth story; staff recommends denial of the height variance. Temporary Vice Mayor Junker opened the public hearing. Jon Whitcomb, applicant, 12950 75th Street, asked for clarification regarding whether the Council is being asked to review the height or the full project. Mr. Turnblad replied the Council is being asked to address the height variance only.The rest of the project was acted on by the Planning Commission,which denied the use permit and setback variances.There is a 10-day appeal window, so if the Council approves the height variance, Mr. Whitcomb could appeal the other denials immediately. Councilmember Weidner asked about the implications if the Council denies the height variance; and Mr. Turnblad stated the appeal of a denial of a height variance would be to District Court, but an appeal of the Planning Commission denials would be to the City Council. Mr. Whitcomb stated he would prefer to have the project reviewed by the full council. He suggested tabling the case to the next meeting. Regarding the proposed fourth floor, he explained that one of the challenges and benefits of the site is its topography. Developers took over a year to come up with the best possible design, incorporating underground Page 3 of 7 EXHIBIT D City Council Meeting January 16,2018 parking in consideration of the City's need for developments to provide their own parking. Underground parking became an extraordinary part of project costs.The way to defer that is to add a living area above. He feels this is reasonable because the portion of the building that is requested to have the fourth floor is outside of the area that has the overlay district. He would like to table it to work with City staff to come up with something that might be more appealing. Motion by Councilmember Weidner, seconded by Councilmember Menikheim,to continue the public hearing on the height variance,as well as the appeal to the Planning Commission denials, to February 20 at 7 p.m. Ayes: Councilmembers Menikheim,Weidner and Temporary Vice Mayor Junker Nays: None UNFINISHED BUSINESS Case No. 2017-61. Reconsideration of a Prelimina P . f• A - 'i• • .nd .n . •. h•r- • and i s ill- .. ors of • en. - .' • • • 8.1. 1 " . 1 S .'i.fl . 11 - •'i • - 'llw. -r 's .s - - isn 1- 1I Et • . _ ..li.h i •1 1 P' ' . r• •n'n• . . .r.xim. e • • . re .• '_, in• • F. 1.'1 i.- • Community Development Director Turnblad stated that the Council considered the preliminary plat and rezoning request for this project on January 2,2018.The first reading of the rezoning ordinance was approved. Though the preliminary plat was found satisfactory, the dead-end street layout was not. Therefore, the Council denied the preliminary plat with unanimous direction to revise the street layout so that neither snowplows nor large fire equipment would have to backup to drive out of the subdivision. The revision has been made and found acceptable to both the Public Works Director and the Assistant Fire Chief.The dead end is now a modified cul-de-sac with the potential for future extension to the east. The developer is requesting the following: 1) approval of the second reading, and adoption of the ordinance rezoning the property to RA, Single Family Residential and 2) approval of the revised preliminary plat for West Ridge. Motion by Councilmember Weidner, seconded by Temporary Vice Mayor Junker, to approve Resolution 2018-020, a resolution approving the preliminary plat for West Ridge, Case No. 2017-61,with 18 conditions recommended by staff. Ayes: Councilmembers Menikheim,Weidner and Temporary Vice Mayor Junker Nays: None Motion by Councilmember Menikheim, seconded by Temporary Vice Mayor Junker, to adopt second reading of Ordinance No. 1099, an ordinance amending the Stillwater City Code Section 31-300 entitled Establishment of Districts by rezoning approximately five acres to RA, Single Family Residential. Ayes: Councilmembers Menikheim,Weidner and Temporary Vice Mayor Junker Nays: None Page 4 of 7 I (water � l ' H F BIRTHPLAIE Of M I N N E S 0 I A 4.1 CITY COUNCIL MEETING DATE: February 20, 2018 CPC CASE NO.: 2017-62 January 16, 2017 (tabled) January 10, 2017: Planning Commission December 13, 17: Planning Commission (tabled) APPLICANT: Browns Creek West, LLC, property owner REQUEST: Consideration of a height Variance, and an appeal to the Planning Commission's denial of a CUP and variances for a structure to be located on vacant property at 107 3rd Street North(Northeast corner of the intersection of 3rd Street North and Myrtle Street West) ZONING: Commercial Business District/ CBD Height Overlay COMP PLAN: Downtown Mixed Use PREPARED BY: Abbi Jo Wittman, City Planner SPECIFIC REQUEST The property owner,John Whitcomb, requests: 1. Pursuant to the appealed Planning Commission decision, approve a Conditional Use Permit to allow the construction of an 11-unit condo complex at 107 3rd St North. 2. Pursuant to the appealed Planning Commission decision, approve setback variances for the condominium. 3. Approve the height variance to allow condominium building to have four stories. BACKGROUND In 2009 the HAF Group applied for a Special Use Permit and associated variances to construct a new post office on the subject property. While an 8' height variance was granted at the time, it was limited to a tower feature. Additional variances were granted for the structure to be located 12' from the southern property line and 15' from the western property line. All approved variances were contingent on the development of the structure as proposed,which did not occur. EXHIBIT E Case No.2017-62 CC:February 20,2018 Page 2 of 12 In 2016 the applicant, in coordination with Trinity Lutheran Church, submitted a request to rezone this land to the Central Business District's Bluffside Height Overly District. The request would have allowed four stories instead of the permitted three stories. This action was denied by the City Council at the recommendation of the Planning Commission and City staff. View of Site • w . kitrj At their regularly-scheduled meeting in January 2018, the Planning Commission considered the current requests. On a unanimous vote, the Planning Commission denied the use permit and the setback variances,without prejudice. The vote also included a recommendation that the Council deny the height variance. (Height variances can only be approved by the City Council. Whereas residential use permits and setback variances can be approved by the Planning Commission.) At the City Council's January 16, 2018 meeting, the Council tabled consideration of the height variance request. This was done because an appeal of the Planning Commission denial of the use permit and setback variances had been filed. And, tabling the height variance request allowed it to be considered at the same time as the appeal. Since the January 16th Council meeting, Whitcomb has requested the City to consider granting public financial assistance for the construction of onsite parking. And, if public funding were approved, the penthouse unit would not be needed to help balance the economics of the project. Though not directly related to this project, a provision of the development agreement for the adjacent municipal parking ramp granted the property now owned by Whitcomb the Case No.2017-62 CC:February 20,2018 Page 3 of 12 right to use 40 spaces in the adjacent city parking ramp to fulfill on-site parking requirements for the subject property. REQUEST DETAILS Browns Creek West LLC has applied for: 1. A Conditional Use Permit to allow for the construction of an 11-unit condo complex on this site. All units will be contained in a single building. 2. Variances necessary for the construction of the condo building. The following associated variances have been requested: City Code Section 31-403(b)(5)i, CBDBT, Freestanding Building • A 10' variance to the 35' maximum height of a freestanding building in the CBDBT,for a 45' tall structure as measured from 3rd Street North; and o While the applicant's request is for a 43.5' tall building, the applicant's measurement of the average elevation is not consistent with the City's interpretation of the average elevation of the building. • A 1.5 story variance to the three story maximum height of a freestanding building in CBDBT for a 4 story building that includes an underground parking level. City Code Section 31-317(c),Massing Regulations • A 15' variance to the 15' Front Yard setback for the construction of a 5' tall retaining wall on the southern property line, adjacent to Myrtle Street West; and • A 5' variance to the 15' Front Yard setback for the construction of a 4' deep architectural component and garage entrance adjacent to Myrtle Street West; and • A 10' variance to the 20' combined Side Yard Setback for the construction of the building and projecting balcony spaces; and • A 15' variance to the 20' Rear Yard Setback for the construction of the building. City Code Section 31-514,Subd. 3(a), Projection into required yard areas • A 2' variance to the 3' maximum yard distance projection for necessary steps adjacent to 3rd Street North PROPOSAL DETAILS The specific proposal includes: • Four stories of residential units that includes: o The first story, off of 3rd Street North,would include: • Two, approximately 1,200 square foot, one bedroom units. These units would each have a deck, one facing to the north and the other to the east. Case No.2017-62 CC:February 20,2018 Page 4 of 12 • One, approximately 2,000 square foot, two bedroom and two bathroom unit with east facing balcony. • One, approximately 2,500 square foot, two bath unit with an east/southern facing balcony o The second and third stories would each contain three units with associated balconies. While one of the units would be approximately 2,000 square feet, the other two bedroom, two bath units would be approximately 2,500 square feet. o The fourth story would include an (at least) two bedroom, two bath unit with its own balcony. This unit is approximately 3,000 square feet • There would be a centralized commons area with two sets of stairs and an elevator. The elevator and both stair wells are proposed to go to the fourth story where there would be common roof access on the south. The north roof access would be for mechanical equipment. • As indicated, all parking is proposed to be located underground. There will also be storage areas in the basement. This is not considered a story as greater than half of the wall spaces are subsurface. CONDITIONAL USE PERMIT REGULATIONS AND ANALYSIS Section 31-207 indicates in approving a Conditional/Special Use Permit, it must be determined by the Planning Commission that The proposed structure or use conforms to the requirements and the intent of this[zoning] chapter, and of the comprehensive plan, relevant area plans and other lawful regulations. Any additional conditions necessary for the public interest have been imposed and use/structure will not constitute a nuisance or be detrimental to the public welfare of the community. Zoning Code The zoning chapter requirements applicable to this Conditional Use Permit(CUP) are: Use: Residences of all classes are permitted by Conditional Use Permit in the Central Business District. Throughout the latter part of the 2000s the City saw the addition of nearly 300 residential units to the community core. This condo building would function the same as Terra Springs, Mills on Main, and the Lofts in that there would be a common association to maintain all jointly owned areas but that each condo unit would be independently owned. While the building will be situated directly adjacent to a single family residential structure, there are multiple family uses in the converted church at the southwest corner of this intersection. Additionally, the next residential property to the north and located on the same side of the same block is zoned Medium Density Residential). While the Case No.2017-62 CC:February 20,2018 Page 5 of 12 use is consistent with the neighborhood but, Building Official Cindy Shifts has indicated the building will need to have a fire suppression system installed and meet all building, plumbing,mechanical/fuel gas, accessibility, and energy codes. Density: Generally speaking, density in the Central Business District is governed by the property's ability to meet the development controls in place. Average densities in the Central Business District vary: Address Common Name Residential Density 610 Main Street North Terra Springs 17 units/acre +/- 501 Main Street North The Lofts of Stillwater 43 units/acre +/- 350 Main Street North Mills on Main 38 units/acre +/- 102+3rd Street South Steeple Towne 34 units/acre+/- 101 Olive Street East Runk Condos 27 units/acre+/- 301 3rd Street North Val Croix 32 units/acre+/- The average density for downtown core residential condo properties is 32 units per acre. A density of 31 units per acre exists when comparing the three closest condo buildings (Steeple Towne, Runk Condos, and Val Croix); the total average of the six largest condo buildings is 32 units per acre. The applicant proposed a density of(approximately) 35 units per acre. Therefore,while the 11 units is generally consistent with condo developments in the neighborhood and the CBD,not all development controls (such as height) can be met. Ten units would result in a density of 32 units/acre. Off-Street Parking and Loading: The following off-street parking spaces are required to be placed onsite: Use Requirement Units Total Parking Required Units 16.5 spaces Multiple 1.5 spaces per unit(one of 11 (rounded to 17 spaces) Family which needs to be covered) Guests 3.66 spaces 1 space for every three units 11 (rounded to 4 spaces) Total 21 spaces The applicant is proposing the creation of 24 parking spaces in an onsite, underground facility. As a reminder, the property is credited with 40 parking spaces;residents could park on the upper level of the City's parking ramp. The plan does require the removal of seven quasi-public parking spaces on and adjacent to this property. The northerly access on to rooftop of the municipal parking ramp would remain open. However,modifications to the parking lot design and curb would need to be made. City Engineer Shawn Sanders has indicated a condition of approval that unused areas of the parking lot and drive lanes (public and private) shall have the Case No.2017-62 CC:February 20,2018 Page 6 of 12 asphalt and the curbs removed and restored with turf, except the area where concrete sidewalk should be added. Traffic and Circulation: No traffic study or circulation assessment has been submitted for this project. However, in order to capitalize on the grade change and provide for underground, onsite parking, access at Myrtle Street is the only viable option. The parking entrance/exit, centered on the property,will be located approximately 45' from the intersection. City Engineer Shawn Sanders has indicated the property owner should explore shifting the egress point to the east. Currently there is a 20' grade separation between the driveway of the property at 110 Myrtle Street East and the subject property. The current plan proposes a five foot retaining wall to be located on the eastern property line. If the garage access point was shifted to the east, the retaining wall would need to be larger, thereby creating greater site line challenges for the adjacent property owner (to the east). Stormwater Management Practices: Given its proximity to the adjacent property and the topography,City Engineer Shawn Sanders has indicated: • no storm water runoff can drain on to the adjacent property to the east; and • stormwater from the new building shall be connected to an existing storm sewer pipe; and • the existing storm sewer in the parking lot shall be removed by the developer. Projects within the Middle St. Croix Watershed Management Organization(MSCWMO) must meet the full review requirements of the MSCWMO Plan. The project does trigger full MSCWMO review and it is likely the project will qualify for flexible treatment options that preclude stormwater infiltration. Approval of the SUP will be contingent on MSCWMO stormwater management plan review and approval. Design Review: The applicant has not submitted a Design Permit for review by the Heritage Preservation Commission. This creates a challenge in the review and approval processes. If the P Council find the use consistent with the standards set forth for Use Permitting and finds practical difficulty warrants the issuance of variances, it can lead to a false impression of approvals granted for a design that has not been determined to be consistent with the Downtown Design Review District guidelines. Therefore, staff recommended to the Planning Commission the applicant submit for review and approval a Design Permit prior to acting on the variance(s). As that did not occur,staff would recommend any approved use permit and associated variance approvals are contingent on an approved Design Permit. The Design Permit will need to include significantly greater detail than is currently shown in the plans. This will include,but not be limited to, materials, color, lighting, and signage. Case No.2017-62 CC:February 20,2018 Page 7 of 12 Landscaping and signage: No landscaping or signage plan has been proposed. The Comprehensive Plan calls for primary landscaping improvements along Myrtle Street West and secondary landscaping improvements along Third Street North. Landscaping should be required on all elevations, while preserving clear corners at the intersection. A condition of approval should include the submittal of a landscape and signage plan to the HPC for review and approval of a Design Permit prior to the issuance of the building permit. Comprehensive Plan &Relevant Area Plans The 2030 Comprehensive Plan(2030 CP) indicates Downtown Stillwater could support up to 250 housing units by 2018. Though the plan notes there is a demand for more units priced under$250,000 as well as for rental, land, development and construction costs have driven up home prices in the downtown. The 2030 CP further indicates aging baby boomers and empty nesters will continue to trade down to smaller,more efficient units. The 2 bedroom, 2 bathroom designed units are similar to most of the units developed in Terra Springs (2004-2008), the Lofts of Stillwater (2005), and Stillwater Mills (2006). However, omitting the largest and smallest units, the average size of the proposed units is 2,240 square feet. The average two bedroom,between all three aforementioned condo complexes,is 1,550 square feet. That said, since the date of adoption of the memo,no additional housing units were created in the Central Business District. Therefore, the construction of 11 new residential units will help support the 2030 CP findings of increasing housing units downtown. Other Lawful Regulations Condominium residential units in the Central Business District generally do not conflict with other lawful regulations. VARIANCE ANALYSIS The purpose of the variance is to "...allow variation from the strict application of the terms of the zoning code where the literal enforcement...would cause practical difficulties for the landowner." In addition to the requirements, below,Section 31-208 indicates "[n]onconforming uses or neighboring lands,structures or buildings in the same district or other districts may not be considered grounds for issuance of a variance" and "...a previous variance must not be considered to have set a precedent for the granting of further variances. Each case must be considered on its merits." Section 31-208 further indicates: • Economic considerations alone do not constitute practical difficulties. • A previous variance must not be considered to have set a precedent for the granting of further variances. Each case must be considered on its merits. Case No.2017-62 CC:February 20,2018 Page 8 of 12 The applicant must demonstrate that: The variance is in harmony with the general purposes and intent of this chapter. The general purpose and intent of the Zoning Code is to regulate and restrict use of land for the protection of public health, safety and welfare. The purpose of the Front,Side, and Rear Yard Setbacks, as well as projection into required yard areas,is to provide for unencumbered space to regulate proportionality and to provide for adequate infiltration, landscaping, and design elements consistent with the historic core. The proposed setback variances are in harmony with the general purposes and intent of the zoning chapter as they help ensure design consistency with historic development patterns on the properties in the vicinity, and are allowing for adequate landscaping and infiltration on a largely developed lot. The purpose of the CBD Height Overlay District is to preserve and enhance the essential character of the downtown and that structures be limited in height in order for structures close to the river not to rise above the height of structures farther from the river. This helps create a stepped-pattern in the"downtown bowl". At 45' in height to the deck of the mansard roof, the total height of the building will be 50' to the very top of the structure. The height will be taller than the (now vacant) property to the west (with a maximum height of 2 stories and 35') as well as the main portions (up to the cupolas) of the two historic churches in the vicinity. The height variances are not in general harmony with the Zoning Code. The variance is consistent with the comprehensive plan. With certain conditions, such as landscaping, the setback variances could be found to be consistent. However, the property is located on two prominent view corridors, as noted on the Gateway and Viewsheds Figure in Chapter 6 of the Downtown Plan. A 2030 CP policy is to "continue to refine and administer design guidelines so that the integrity of the existing and surrounding buildings is maintained and new development is of a height, size, and design compatible with the best examples of the existing development". When combined with the objectives to "reinforce...landmarks, steeples, and significant structures along gateway corridors," the Planning Commission found the height variance is not consistent with the comprehensive plan. The applicant for the variance establishes that there are practical difficulties in complying with this chapter. "Practical difficulties,"as use in connection with the granting of a variance, means that all of the following must be found to apply: The property owner proposes to use the land in a reasonable manner for a use permitted in the zone where the land is located, but the proposal is not permitted by other official controls; The use of the property for residences with onsite, underground parking has been shown to be reasonable in this location. Case No.2017-62 CC:February 20,2018 Page 9 of 12 The plight of the landowner is due to circumstances unique to the property and that are not created by the landowner; and Setbacks in the Central Business District are nearly nonexistent for many properties. However, the modern zoning and building codes suggests separation between buildings and from the building to the street is desirable. As adjacent property is setback and not built right to the property line, the uniqueness is aiming to find reasonable setbacks given the existing setbacks, the topography and the staggered nature of the setbacks on Myrtle Street West. Regarding the maximum height variances, certain improvements integral to the building are allowed to project above the roofline and the maximum allowable height. This includes elevator bulkheads as well as stairwells. The applicant has shown what these three components would look like if they were carried above the roofline of a three-story building. However, elevator access and stairwells to access rooftops are not customary nor required; each unit does have balcony or patio space with views of the river. Additionally,if the rooftop is not used as communal space, the building code would only require a single access point. It is the desire of the applicant to not only have communal rooftop access but to also have the penthouse suite. While argument can be made about the economics of the development site, economics alone cannot be grounds for granting a variance. The variance, if granted, will not alter the essential character of the locality. The addition of any structure on this site will alter the character of the neighborhood. However, a design that conforms to the Zoning Code and the Downtown Design Review District guidelines would not significantly alter the character of the locality. As the development is not proposing to meet the maximum height allowances and the Heritage Preservation Commission has not reviewed the design, the Planning Commission determined the current design will alter the essential character of the locality. PUBLIC COMMENT Comments have been received from the following at are attached for the Commission's review: Dick Sjoberg,property owner at 102 3rd Street North. Mr. Sjoberg expresses concern for the height of the proposed structure (including photographs of the existing,38' tall telephone poles on this site), its impact to the established historic structures (particularly the churches and their steeples), traffic concerns at the three-stop intersection, as well as variances to the property's setbacks. He requests the Planning Commission deny the application, requesting a redesigned structure that supports a better transition in this neighborhood. Case No.2017-62 CC:February 20,2018 Page 10 of 12 Elaine Connors, 116 3rd Street South. Ms. Connors states the height of the new building would overwhelm the existing streetscape and that the design is not consistent with the historic nature of the neighborhood. She also indicates there are already pedestrian safety concerns at the corner of 3rd and Myrtle Streets. Cameron Murray, 350 Main Street North. Mr. Murray points out that there will increased traffic in the morning and evenings in this area. He acknowledges staff's suggestion to move the access to the east but suggests the developer explore the possibility of underground connections to the existing parking ramp. Doug Johnson, Trinity Lutheran Church Congregational Council, 115 4th Street North. Mr. Johnson indicates Trinity Church supports the recommendation of city staff to deny the variance application. He notes this is consistent with the congregation's position in early 2017 when Gail M. Olson, then Congregational Council President,submitted similar comments for CPC Case No. 2016-43. Robert Hasel, 114 3rd Street South. Mr. Hasel expresses concerns similar to other occupants of the Steepletown building (the rehabilitated Church at the SW corner of 3rd and Myrtle). He additionally raises the concern that HPC design review had not occurred prior to the use permit and variance proceedings. Brian Michael and Katie Elliot, 120 3rd Street South. They further express similar comments to those noted, above. Scott Wallace, 112 3rd Street South. Mr. Wallace further expresses similar comments to those noted, above. ALTERNATIVES A. Approval If the City Council finds the 11-unit residential condo proposal to be consistent with the provisions of the CUP process, the Council could move to approve the CUP with or without conditions. If the City Council finds practical difficulties do exist for the 11-unit to have specific Front,Side and Rear Yard variances, they move to approve these variances,with or without conditions. If the Council finds practical difficulties do exist for the 11-unit residential condo to be four stories in height, they could move to approve the height variance, with or without conditions. B.Table If the City Council finds that the application is not complete enough to make determination of practical difficulty and compliance with the Conditional Use Permit,it could continue the review for additional information. Case No.2017-62 CC:February 20,2018 Page 11 of 12 C. Denial If the City Council finds no practical difficulty exists and the proposal is not consistent with the provisions of the CUP regulations, the Council should deny the CUP and associated variances. The Commission should indicate a reason for the denial and determine whether or not the denial is with or without prejudice. FINDINGS AND RECOMMENDATION Multiple family residential uses in the Central Business District are consistent with the Comprehensive Plan. While the applicant is requesting numerous variances to accommodate the proposed structure, many of the variances requested are common in the historic downtown district. As noted, the modern zoning and building codes suggests separation between buildings and from the building to the street is desirable. But, setbacks from all property lines are proposed. So, the building use and its setbacks appear to be defensible. However, the combination of setback variances and the height variance were not found acceptable by the Planning Commission. Planning Commission In a 7-0 vote, the Planning Commission: 1) denied the use permit and setback variances; and 2) recommended denial of the height variance. Staff Staff recommends: 1) conditional approval of the use permit; 2) denial of the height variance; and 3) approval of the setback variances. Staff would recommend, at a minimum, the following conditions of approval: 1. This Special Use Permit is in all ways a Conditional Use Permit as the term is used in Minnesota Statue Section 462.3595. 2. Plans shall be substantially similar to those found on file with CPC Case No. 2017- 62, except as modified by the conditions herein or by Heritage Preservation Commission approval. 3. Approvals granted shall not become effective until a Design Permit has been reviewed and approved by the Heritage Preservation Commission. 4. Refuse shall be kept inside at all times with the exception of collection day. Refuse containers outside on collection day shall be stored on private property and shall not block the public right-of-way, including the sidewalk. 5. All mechanical units shall be enclosed or screened from public view. 6. Landscaping shall be required on all four elevations. Landscaping shall keep the Third and Myrtle Street intersection clear. Landscaping shall be reviewed and approved by the Heritage Preservation Commission. Case No.2017-62 CC:February 20,2018 Page 12 of 12 7. A sign plan shall be submitted for review and approval by the Heritage Preservation Commission. 8. Unused areas of the existing parking lot and drive lanes (public and private) shall have the asphalt and curbs removed and restored with turf, except in areas where concrete sidewalks should be added. 9. The project will require full Middle St. Croix Watershed Management Organization (MSCWMO) review. The project shall meet the full review requirements of the MSCWMO. 10. No storm water runoff shall drain on to the adjacent property to the east. 11. Storm water from the new building shall be connected to an existing storm sewer pipe. 12. The existing storm sewer in the parking lot shall be removed by the developer. 13. The structure will need to have a fire suppression system installed and meet all building,plumbing,mechanical/fuel gas, accessibility, and energy codes prior to the issuance of a building permit for construction. 14. As per City Code Section 31-204 Subd. 7(a) and 7(b), minor modifications shall be approved, in advance, by the Community Development Director. Major modifications shall be heard by the decision-making authority in a public hearing. 15. If the City Council approves any public financial assistance for the condominium's basement parking, then the property owner must agree to waive his claim on the 40 parking spaces specified in the development agreement for the adjacent municipal parking ramp. ATTACHMENTS Site Location Map Ordinance No. 1091 Appeal Letter Original Narrative Submission(ARCHNET) Certificate of Survey Site Plans (2 pages) Floor Plans (5 pages) Elevations (2 pages) Views (9 pages) Public Comments (14 pages) January 10, 2018 CPC meeting minutes City Council Meeting February 20, 2018 Resolution 2018-029, approving transfer of On-sale and Sunday Liquor Licenses to MAV Hospitality LLC, DBA: Pearl & The Thief(formerly Pub 112) Resolution 2018-030, Resolution approving Construction Management Agreement with Contract with Kraus-Anderson for St. Croix Recreation Center Possible approval to replace the Storage Area Network (SAN) - MIS Motion by Councilmember Menikheim, seconded by Councilmember Polehna, to adopt the Consent Agenda. Ayes: Councilmembers Menikheim, Junker, Weidner, Polehna and Mayor Kozlowski Nays: None PUBLIC HEARINGS Case No. 2017-62. A public hearing to consider a request by Brown's Creek West LLC, property owner, for the consideration of a CUP and Variances to build a new residential condominium at the property located at 107 Third Street North in the CBD district(continued from January 16, 2018). Community Development Director Turnblad reviewed the case. The property owner, Jon Whitcomb, requests: 1) Pursuant to the appealed Planning Commission decision, approval of a Conditional Use Permit to allow the construction of an 11-unit condo complex at 107 Third Street North; 2) Pursuant to the appealed Planning Commission decision, approval of setback variances for the condominium; 3) Approval of the height variance to allow the condominium building to have four stories. Comments have been received from eight neighbors expressing concern for the height of the proposed structure, increased traffic and the concern that HPC design review had not occurred prior to the use permit and variance proceedings. Staff finds that multiple family residential uses in the Central Business District are consistent with the Comprehensive Plan. While the applicant is requesting numerous variances to accommodate the proposed structure, many of the variances requested are common in the historic downtown district. The building use and its setbacks appear to be defensible. However, the Planning Commission found the combination of setback variances and the height variance unacceptable. Staff recommends: 1) conditional approval of the use permit; 2) denial of the height variance; and 3) approval of the setback variances with 15 conditions of approval. On a question from Councilmember Junker regarding if the height variance is not approved,could the developer redesign the building to 35 feet; and Community Development Director Turnblad responded that the penthouse is independent so perhaps it can be removed without redesigning the entire building but he would want the architect to answer the question. Councilmember Menikheim asked if tonight's deliberations include the request for financial assistance for on-site parking mentioned in the staff report;and Mr. Turnblad explained the public benefit that would result if tax increment financing(TIF)were utilized in regard to on-site parking. The previous property owner, Trinity Lutheran Church, had negotiated the right to use 40 public parking spaces in the municipal parking ramp in order to meet parking requirements of a development that was being considered for the property at the time. If the City offers TIF for this project to facilitate construction, including on-site parking, and removes the right of access to those 40 spaces, the public would regain 40 spaces in the municipal parking ramp that could be considered a public benefit. Councilmember Junker referred to the June 2008 development agreement between the City and Trinity, asking if the references to a future Trinity development had been revised to reflect the Page 3 of 8 EXHIBIT F City Council Meeting February 20, 2018 purchase of the property by the current developer; and City Attorney Magnuson replied that the rights of Trinity were assigned to the present owner. Councilmember Junker questioned if the Council would have had to sign off on that as a City; and City Attorney Magnuson answered yes. Councilmember Weidner asked if this had come before the Council; and Mr. Magnuson replied that he is not sure if it did. Mayor Kozlowski opened the public hearing. Roger Tomten, ARCHNET, explained why he and the developer feel residential is the best use for this site. After looking at many different configurations for parking considering the challenges of topography,the access off Myrtle into the underground parking seemed to be the most efficient layout for the site. The variances requested are very common in the downtown area, as is building closer to the street. There might still be a possibility of doing some mixed use on the main level if they can work out the heights for the lowest level. The plan deals with the topography in the most efficient way possible. Jon Whitcomb, developer, stated that he had assumed that there was communication between all levels at the City relative to the previous development agreement and the parking garage. He subsequently learned that not everyone was informed on the previous agreement; He understood that in purchasing the four lots,he gained the assignment of the 40 parking stalls in the City ramp and would be able to construct a project on the site. Mr. Whitcomb noted that small infill sites present challenges, especially when building something of quality, so he feels they had to push the envelope sideways and that is where the fourth floor came in. He referred to his previous request before the Council to have the property rezoned so a variance would not be needed for the penthouse unit, which is critical to the end project. In looking at other alternatives, he could have utilized the 40 assigned parking spaces but he felt the City would not want to see a residence built with no parking. While he would prefer do a high quality project with all parking on-site, if the fourth floor is unpalatable, however he is open to discussing alternatives. On a question from Councilmember Weidner regarding if the project has gone before the Heritage Preservation Commission (HPC); and Community Development Director Turnblad responded that if variances and the use permit are granted, then it must go before the HPC for design review before a building permit is issued (this is one of conditions of approval). However if the HPC requires substantial design changes,variances could be impacted, so it is a dilemma. If the project had gone to the HPC first, it would have required a level of architectural design that could be difficult to produce if the project approvals have not yet been granted. Mark Balay, 110 Myrtle Street, noted that he and his wife are happy that a project is being proposed on this corner, but it does create some issues. The most dramatic variance to the side yards is on their property line. He is not convinced that the building can be built five feet from the property line without encroaching his property for the excavation. From his perspective,it will look like a five story building because the parking ramp on that side is out of the ground. He would be much more amenable if the developer could reduce the size of the building by five feet. He feels there is no practical difficulty to justify the granting of the variance, it only represents the desire to have more space to sell. Mary Russell, 921 North Second Street, voiced concern about the massiveness of the building. She favors residential housing for the site,but feels this proposal ignores the neighborhood around Page 4 of 8 City Council Meeting February 20, 2018 it and interferes with the view lines. She would like to see the proposal go through design review. She also is concerned about traffic going onto Myrtle Street in the middle of Myrtle Street hill. Mayor Kozlowski closed the public hearing. Councilmember Junker commented that he likes the use however, his major issue is with the height and massing of the building; and felt the site is too small for the building as designed. He also is concerned about the parking entrance 3/4 of the way up Myrtle Street near one of the worst intersections in town. Mayor Kozlowski stated that he could envision cars going down the hill waiting to take a left into the parking garage and backing up the whole intersection. Councilmember Menikheim stated that he shares Councilmember Junker's views. The proposal is for high-end housing that he is not sure the City needs right now. He feels the current design alters the essential character of the locality, the height variance is not consistent with the Comprehensive Plan, garage access as designed is unacceptable, and the massiveness of the building substantially changes the view-shed. He cannot support the project as designed. Councilmember Weidner stated that he would support some residential use based on certain conditions, but not the variances requested. Councilmember Polehna remarked that he favors residential use, but opposes the height and setback variances. Mayor Kozlowski summarized that the Council considers the CUP is acceptable, but not the height or setback variances. City Attorney Magnuson informed the Council that they could deny the request without prejudice, which gives the developer the opportunity to bring revised plans before the Council without waiting a year. Otherwise, if it denied, they cannot come back for a year. Motion by Councilmember Junker, seconded by Councilmember Menikheim, to deny without prejudice the CUP and Variances to build a new residential condominium at the property located at 107 Third Street North. Ayes: Councilmembers Menikheim, Junker, Polehna and Mayor Kozlowski Nays: Councilmember Weidner UNFINISHED BUSINESS Possible approval of second reading of Ordinance 1103, an ordinance amending the Stillwater City Code Section 31-300 Entitled Establishment of Districts by rezoning approximately 15 acres to RB, Two-Family Residential - Heifort PUD Phase II (Case No. 2017-67). Community Development Director Turnblad stated that Todd Ganz,Integrity Land Development, is proposing to develop Phase Two of the 26.1 acre Heifort Hills Planned Unit Development (PUD). The second phase has 24 home sites spread across 10.9 acres of land that will be platted as Heifort Hills Estate. The City Council approved the Final PUD, preliminary plat and the first reading of the rezoning on January 30. Staff recommends approval. Motion by Councilmember Weidner, seconded by Councilmember Polehna, to adopt second reading of Ordinance 1103, an ordinance amending the Stillwater City Code Section 31-300 Entitled Establishment of Districts by rezoning approximately 15 acres to RB, Two-Family Residential - Heifort PUD Phase II (Case No. 2017-67). Page 5 of 8