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HomeMy WebLinkAbout08-15-2016 Planning Commission Minutes MINUTES OF THE ORONO PLANNING COMMISSION MEETING Monday,August 15,2016 6:30 o'clock p.m. ROLL CALL The Orono Planning Commission met on the above-mentioned date with the following members present: Chair John Thiesse, Commissioners Denise Leskinen,Loren Schoenzeit, and Jon Schwingler. Representing Staff were Community Development Director Jeremy Barnhart, Senior Planner Michael Gaffron, City Planner Melanie Curtis, and Recorder Jackie Young. Council Member Dennis Walsh was present. Council Member Levang arrived at 8:12 p.m. Chair Thiesse called the meeting to order at 7:09 p.m., followed by the Pledge of Allegiance. NEW BUSINESS 1. APPROVAL OF PLANNING COMMISSION MEETING MINUTES OF JULY 18,2016 Schwingler moved,Schoenzeit seconded,to approve the minutes of the Orono Planning Commission meeting of July 18,2016,as submitted. VOTE: Ayes 4,Nays 0. 2. #16-3848 PETER W.JOHNSON ON BEHALF OF MICHAEL AND JANELLE SCHIELDS,364 WESTLAKE STREET,AFTER-THE-FACT CONDITIONAL USE PERMIT, 7:11 P.M.—7:18 P.M. Peter Johnson, Attorney-at-Law,was present. Gaffron stated this property is located at the end of Westlake Street. The applicants are requesting after- the-fact approval of a conditional use permit for a 4-foot high retaining wall located less than two feet from the side lot line and within a dedicated drainage and utility easement. Gaffron displayed the original plan for the retaining wall. The wall as constructed is approximately 80 feet in length and was constructed by the owners' landscapers but was not installed according to the approved site plan. The original plan called for a two-tier wall system located more than five feet from the lot line. In regards to the drainage, Staff does not believe that is an issue. The adjoining neighbor to the immediate west has stated to the applicant that the retaining wall as constructed does not affect him and that it may serve to reduce drainage onto his property, which he views as positive. If the City Council approves the conditional use permit,the property owners will be required to enter into an encroachment agreement with the City,to be filed with the title of the property. The encroachment agreement notifies the property owner that the City has the right to remove the retaining wall should the easement area ever been needed. Gaffron displayed photographs of the retaining wall and adjoining area. Staff has reviewed the wall as constructed and observed its relationship to the driveway and neighboring property. The approved plan had the wall directly abutting the edge of the driveway,which is allowable by code but creates a less-than-perfect safety condition by creating an immediate drop-off that leaves no room for driver error. While the wall was not constructed according to the approved plan, it serves the Page 1 of 21 MINUTES OF THE ORONO PLANNING COMMISSION MEETING Monday,August 15,2016 6:30 o'clock p.m. function of retaining earth to allow for a functional driveway while not being located at the very edge of the driveway. This would appear to be a safer situation than the approved plan. Planning Staff recommends approval of the conditional use permit for the existing retaining wall as currently located, subject to the property owner entering into an encroachment agreement establishing parameters for the continued existence of the wall within the drainage and utility easement. Thiesse asked whether the wall could be replaced in kind in the future in its current location. Gaffron indicated they would require a permit if the wall is relocated and that the City would likely also require a review of the conditional use permit if the wall is rebuilt in the same location. Thiesse asked if the property owners could build a similar wall in a different location if the City decided that it needed that area for a drainage way. Gaffron stated to his belief they would be allowed to but that it would be a question for the City Attorney to answer. Gaffron stated if the City decided it needed the easement area,the wall would not be allowed to be rebuilt if it interfered with anything within the area. Thiesse stated he would like that spelled out in the agreement. Peter Johnson stated he is here on behalf of the applicants and can answer any questions the Planning Commission may have. Chair Thiesse opened the public hearing at 7:16 p.m. There were no public comments regarding this application. Chair Thiesse closed the public hearing at 7:16 p.m. Schoenzeit stated perhaps allowing encroachment agreements to be approved administratively could be discussed at the next Planning Commission work session. Thiesse noted it requires a conditional use permit. Leskinen noted the issue with this application relates to the retaining wall being located in a drainage and utility easement. Curtis stated if the wall were located out of the easement area,then it would require a conditional use permit and not an encroachment agreement. Thiesse stated the public should also be able to comment on the matter. Leskinen commented it appears to be a reasonable request as long as an encroachment agreement is entered into. Page 2 of 21 MINUTES OF THE ORONO PLANNING COMMISSION MEETING Monday,August 15,2016 6:30 o'clock p.m. Schoenzeit moved,Schwingler seconded,to recommend approval of Application No. ,Peter Johnson on behalf of Michael and Janelle Schields,364 Westlake Street,granting of an after-the- fact conditional use permit,subject to Staff recommendations. VOTE: Ayes 4,Nays 0. 3. #16-3851 PETER BLUTH,2413 CARMAN STREET,VARIANCES,7:18 P.M.—7:25 P.M. Peter Bluth, Applicant, was present. Curtis stated the applicant is requesting side and rear setback variances in order to add a second story to the existing non-conforming garage to allow for storage and living space. The garage exceeds 1,000 square feet and is therefore defined as an oversized accessory structure requiring additional setbacks. The applicant also proposes to construct an addition to the home over an existing grade-level deck where a screen porch currently exists which would result in a separation of approximately nine feet from the garage where a 10-foot separation setback is required. The property is a corner lot and by definition Shoreline Drive is defined as the front. The south lot line is the rear, which requires a 30-foot setback from the existing garage. The side setback variance is requested to allow expansion of the second story over the garage 28.4 feet from the side lot line where a 30-foot setback is required. In addition, a variance is requested to allow expansion 11.9 feet from the rear lot line where a 30-foot setback is required. The 10-foot code required separation between buildings is for the purpose of reducing massing and bulk on properties. The existing screen porch structure is ten feet from the nearest garage corner. However, the applicants are proposing to construct the addition in line with the west line of the home,which would result in a 9-foot setback. Staff finds that the nonconforming location of the garage constitutes a practical difficulty with respect to making any improvements or changing the footprint. The proximity of the house to the garage further limits options. The encroachment of a corner of the garage by one foot into the separation distance is minimal and does not appear to be impactful as a full wall encroachment from a crowing standpoint. Planning Staff recommends approval of the variances as requested. Staff would recommend the applicant be requested to enter into the standard Oversized Accessory Structure covenant. The Planning Commission had no questions for Staff. Peter Bluth,Applicant, stated he can answer any questions the Planning Commission may have. Thiesse asked if the applicant understands that the oversized accessory structure cannot have a bathroom and that he will be asked to sign an agreement to that effect. Bluth indicated that is correct. Schoenzeit asked if the current garage has footings. Bluth indicated it is slab on grade. Page 3 of 21 MINUTES OF THE ORONO PLANNING COMMISSION MEETING Monday,August 15,2016 6:30 o'clock p.m. Thiesse stated he cannot attach it to the house but he can go up. Thiesse asked if the screened-in porch is on posts. Bluth indicated it is and that it is a deck with a screened-in sunroom. Thiesse asked how the front line is defined. Curtis indicated it would be the narrower of the two street frontages. Thiesse noted there is no way he would ever be able to construct a driveway in that area. Thiesse asked if anything would change if it was defined otherwise. Curtis stated with respect to the requests he is making today, he would still need to meet the 30-foot setbacks. Chair Thiesse opened the public hearing at 7:23 p.m. There were no public comments regarding this application. Chair Thiesse closed the public hearing at 7:23 p.m. Thiesse noted for discussion purposes that the porch is a clean slate and that it should be in conformance if at all possible. Thiesse asked if the one foot relates to the fire code. Curtis indicated it relates to the massing and that they do meet the fire code required separation. Schwingler stated in his view it is a great addition. Leskinen moved, Schoenzeit seconded,to recommend approval of Application No. 16-3851,Peter Bluth,2413 Carman Street,granting of side and rear setback variances and a structure-to- structure setback variance,subject to Staff recommendations. VOTE: Ayes 4,Nays 0. 4. #16-3853 MATT AND JENNIFER NYQUIST, 1125 PINE VIEW DRIVE,VACATION, 7:25 P.M.—7:31 P.M. Jennifer Nyquist,Applicant, was present. Curtis stated in 2003, with the plat of Pine View,the City received a Grant of Permanent Flowage and Conservation Easement and restrictive Covenant for Wetland and Wetland Buffer over the property located at 1125 Pine View Drive. The applicants wish to install an in-ground swimming pool in the rear yard of their property. The grading plan for the pool improvement will change the drainage by creating a swale to move storm water to the storm water pond on the property. The area previously needed for the easement will change. As a result,the applicants wish to amend the easement to cover only the necessary drainage areas. Staff finds that there is limited to no public interest in maintaining the portion of the easement proposed to be vacated. Based on the planning improvements, re-grading, and other factors, the existing easement is no longer necessary. Page 4 of 21 MINUTES OF THE ORONO PLANNING COMMISSION MEETING Monday,August 15,2016 6:30 o'clock p.m. The Planning Commission should open the public hearing, consider comments from the public and, if comfortable, make a recommendation for approval vacating the portion of the easement over 1125 Pine View Drive as described in Exhibit C. The Planning Commission had no questions for staff. Jennifer Nyquist, Applicant, stated she would be able to answer any questions the Planning Commission may have. Chair Thiesse opened the public hearing at 7:28 p.m. There were no public comments regarding this application. Chair Thiesse closed the public hearing at 7:28 p.m. Schoenzeit asked whether the Planning Commission will need to see this again following review by the City Engineer and the Watershed District. Curtis stated any change that should occur would not be substantial and the Planning Commission should not have to see this application again. Thiesse asked if the City has dewatering ordinances in Orono and whether the applicants can install a pool in a low-lying area. Gaffron stated it is not technically a floodplain area and that there should not be anything that prevents it from being constructed. Curtis noted what is in the Commissioners' packets is not the final pool design. Schoenzeit moved,Leskinen seconded,to recommend approval of Application No. 16-3853,Matt and Jennifer Nyquist, 1125 Pine View Drive,granting of a vacation of the easement,subject to Staff recommendations and review by the City Engineer. VOTE: Ayes 4,Nays 0. 5. #16-3856 SARYAN CRUISINE DEVELOPMENT,LLC,ON BEHALF OF PAUL AGRE COMPANY,2380 SHAYWOOD ROAD, CONDITIONAL USE PERMIT,7:31 P.M.—8:38 P.M. Patrick Bernet, Saryan Cuisine Development, was present. Barnhart stated the applicants are requesting a conditional use permit to operate a production bakery, retail bakery outlet, a full menu café and restaurant at 2380 Shadywood Road. A similar use, a coffee and bagel shop, is a conditional use in the B-5 zoning district. Saryan Cuisine operates three Patrick's Bakery Cafes in the metro area and proposes a fourth at this location. Patrick's Bakery Café would offer breakfast, lunch, and dinner service in the 60-seat dining room. Improvements to the site include both an internal remodel and external cosmetic changes to the building. The rear third of the building will house offices, ovens, cold storage and utility spaces associated with a commercial kitchen. The middle third will be the production kitchen which will prepare Page 5 of 21 MINUTES OF THE ORONO PLANNING COMMISSION MEETING Monday,August 15,2016 6:30 o'clock p.m. baked goods, pastries and the food for the café and restaurant. The front of the building will house the dining and retail area. The existing front door vestibule will be used but the existing drive-through will not be used. Barnhart displayed some photographs depicting the exterior of the building and signage. Barnhart noted coffee and bagel retail are not defined in the zoning ordinance. It is felt this use is similar to Caribou or other coffee houses as well as Bruegger's bagel shops, all of which are open throughout the day and offer food for dine in. Restaurants are defined but are not permitted uses in the B-5 zoning district. The applicants are proposing a business that provides baked goods and drinks with an expanded menu throughout the day. They intend to apply for a liquor license to offer beer and wine to the lunch and dinner customers. By definition, businesses offering liquor are a Class II restaurant. Barnhart stated an ordinance amendment may be necessary for the City to be able to issue a liquor license. Barnhart noted restaurants are restricted to certain districts to alleviate potential impacts due to noise and traffic. The proposed use is not outside the norm. Staff would suggest a limitation on hours to alleviate potential noise concerns. Barnhart stated coffee and bagel retail are a conditional use permit in the B-5 zoning district subject to the following four conditions: 1. No more than 50 percent of the gross floor area of any single building shall be devoted to coffee and/or bagel retail store uses. The applicant is proposing 32.7 percent of the building will be devoted to food/beverage retail uses. 2. No individual coffee or bagel retail store use shall exceed 2,000 square feet of gross floor area. A combined coffee and bagel retail store use shall not exceed 4,000 square feet of gross floor area. The combined area of the food/beverage retail is 3,900 square feet. 3. The number of incremental parking spaces required for the coffee and/or bagel retail store use shall be calculated using the parking requirement standard for restaurant uses. A restaurant requires one space per 80 square feet of public floor area or 49 spaces. The property provides 60 spaces, which exceeds the requirement. A portion of the parking area is subject to a cross parking easement with the property now occupied by Culver's. In practice, and based on observations, Culver's customers frequently use 10-12 spaces on the subject property. 4. An individual coffee or bagel retail store use shall be limited to a maximum of 45 seats. A combined coffee and bagel retail store use shall be limited to a maximum of 60 seats. The combined number of seats being proposed is 60. Barnhart stated based on those four conditions,the proposed use appears to meet the standards imposed on bagel and coffee stores. Barnhart displayed the interior floor plan for the building. Page 6 of 21 MINUTES OF THE ORONO PLANNING COMMISSION MEETING Monday,August 15,2016 6:30 o'clock p.m. The proposed use as a bakery and coffee shop with an expanded food menu, while observing the constraints imposed on coffee/bagel shops, appears to be appropriate at the proposed location. Should the Planning Commission agree,Planning Staff would recommend approval of the proposed conditional use permit subject to the drive-through window not being used and the retail space not being open past the hour of 10 p.m. Thiesse stated he is having some difficulty understanding why a bagel shop would want a liquor license and that he is not sure why this would not be defined as a restaurant. Thiesse stated while it might be a good location for the proposed use, he would like to discuss whether it should be classified as a restaurant. Barnhart stated the applicants have requested a conditional use permit for a bagel/coffee facility,which is a unique use and is not defined in the City Code. Barnhart stated it might have been more appropriate to list this type of use as a small restaurant back in 1998 when the criteria were adopted. Schoenzeit noted the outdoor seating area and liquor license is not before the Planning Commission at this time. Schoenzeit stated if those items are included, it would be a Bruegger's plus-plus. Thiesse commented parking in Navarre is always difficult,which is also a concern. Schoenzeit asked if the parking easement is a mutual cross or one way. Barnhart indicated it is mutual. Schwingler stated in 1998,when this type of business came about, none of them really offered food besides pastries and they acted as more of a community gathering place. Schwingler stated businesses now are taking that concept forward and expanding the original goal. Barnhart noted the City has received a number of comments from residents, with 11 of them being in support and one opposed. Schwingler commented the building is also right on the bike trail and it would be a good asset to Navarre and the community if the site is developed. Thiesse stated he agrees with all that but he would like to call it what it really is. Terrill Fridley,Attorney-at-Law, stated he has reviewed the parking easement and it is a cross parking agreement. Fridley stated the agreement appears to allow parking for the southeast property on those roughly 18 to 19 stalls and also allows parking for this facility on a similar number of stalls directly south of that line. Fridley noted that area was all part of the Old Navarre Avenue that was eventually vacated. Fridley stated in their view there is plenty of parking given the different times of use for the businesses in the area. Bill Wilson,Realtor, stated they have gone through the Orono City Code and they feel this is a good approach. Wilson stated the reason they feel a conditional use permit would be good is because it is narrow in scope and that they are willing to take the Planning Commission's input and address any concerns they might have. Wilson noted they will also have the ability to add parking to the site since the drive-through lane will be vacated. Wilson stated in their view it is a complementary use to the area. Page 7 of 21 MINUTES OF THE ORONO PLANNING COMMISSION MEETING Monday,August 15,2016 6:30 o'clock p.m. Thiesse asked if they have any plans to ever use the drive-through. Wilson stated there are not. Wilson stated they are attempting to limit the impact to the surrounding homes and that there is really only one house nearby who is not opposed to the proposal. Wilson noted that resident did not oppose the previous application either. Schwingler asked if they will be running a catering outfit as well. Patrick Bernet, Applicant, indicated they would be producing and distributing baked goods out of this location. Schoenzeit asked if the plan is ADA compliant. Fridley stated it is and that the building is already sprinkled. Wilson indicated two ADA bathrooms will be constructed near the front and the two existing bathrooms will be for staff use. Bernet stated the bigger menu will only be offered from 5 p.m. to close and the rest of the day will be only as a cafe with a limited menu. Bernet noted approximately 2 to 5 percent of the business will be food sales. Wilson stated the gross food sales on their other stores are 2 to 3 percent of their total sales and that it is a nice amenity. Bernet stated the liquor sales would be very minimal and that they would just like to be able to offer it. Schoenzeit asked if they see it as a deal breaker if the liquor is not allowed. Bernet indicated it would not be at this time. Brad Haaf, stated he is one of the partners that owns the building and that Snyders moved out approximately seven years ago. Haaf indicated they have been aggressively marketing the site and there is not a lot of residential daytime population. Haaf commented this particular use will cater to the existing neighborhood. Chair Thiesse opened the public hearing at 7:52 p.m. Jim Anderst, 5230 County Road 151, Minnetrista, stated he does not believe anyone has taken into consideration how Orono has always been steadfast with their ordinances and how they do not change to adopt to a new business. In addition, nobody has taken into consideration the fact that it will be a production bakery. Anderst asked how many employees there will be and how many parking stalls will be needed for customers and the production employees. Anderst stated in his view there is not enough parking. Anderst stated no one has taken into consideration how many other coffee shops and bakeries there are in the area. Anderst stated he believes Orono needs to stick to more retail and services and not a production bakery. Page 8 of 21 MINUTES OF THE ORONO PLANNING COMMISSION MEETING Monday,August 15,2016 6:30 o'clock p.m. John O'Sullivan,noted he owns the adjacent property consisting of Culver's and the Holiday Station. O'Sullivan stated he did not want to come here to say anything negative since this property has been sitting vacant for seven years but that he does have two concerns about the proposal. O'Sullivan indicated when they co-developed the corner,they actually held a number of public meetings for the community to see what they would like to see in the old church property. An overwhelming number said they need a pharmacy in the area,which led to the development of the Snyder's building. The City approved the Snyder building due to the low density and the limited number of customers that would be there at one time. O'Sullivan indicated he seldom saw more than six to twelve parking stalls filled at one time but the traffic to the building was steady throughout the day. The City at that time was very concerned about the parking. O'Sullivan noted there are 20 stalls that they utilize and that they have an easement for the parking on their property as well as the other 20 stalls. O'Sullivan stated the gentleman indicated that they have the use of their parking as well,which he does not believe is correct. O'Sullivan stated that was never the intention of the agreement and that they have a lifetime easement over those 20 parking stalls. O'Sullivan stated that will need to be looked into and that it is his belief it is a one-way easement. O'Sullivan noted there is a Patrick's in Maple Grove and it is a full-service restaurant, not a coffee and bagel shop. O'Sullivan stated the City needs to be familiar with what the business really is. O'Sullivan indicated he is not worried about the competition since it might help his business and that Patrick's will not be competing with his menu items. O'Sullivan stated his second concern relates to the other couple of vacant lots that are not currently zoned for restaurants. O'Sullivan stated this site is not zoned for a restaurant but that it is zoned for a coffee/bagel shop,which is likely a very small percentage of the applicant's business. O'Sullivan stated he is worried other restaurants will want to come in if this application is approved. Patrick Bernet stated the concept they are proposing here is not what they have in Maple Grove. Bernet indicated this will not be a full-service restaurant but that there will be retail and a food counter. Bernet stated as it relates to the production portion,there will be five to seven people in the production area at one time. Bernet stated people will come up to the counter,the staff will give the person a number and then bring the food to the table. Leskinen asked if it would be that way as well in the evening or whether they would have wait staff. Bernet stated the full menu would only be offered from Thursday to Sunday, 5 p.m. to close, but that the retail space will be open as well during that time. Bernet indicated they will have wait staff on duty during that time. Schoenzeit asked what the proposed hours are. Bernet indicated they would be open from 7 a.m.to 10 p.m. in the summertime and 7 a.m.to 9 p.m. during the winter. Schoenzeit asked what time the bakery would be operating. Bernet indicated that would start early in the morning. Page 9 of 21 MINUTES OF THE ORONO PLANNING COMMISSION MEETING Monday,August 15,2016 6:30 o'clock p.m. Thiesse asked if the catering business would consist of a few panel trucks. Bernet stated the people will come to the store to pick up their orders. Chair Thiesse closed the public hearing at 8:03 p.m. Schwingler stated the City will need to find out more information about the parking easement. Gaffron indicated he does not have the cross parking agreement and that it will need to be researched. Fridley indicated he has the agreement. Barnhart stated it does appear there is a cross parking and access agreement through both properties. Thiesse asked if the production staff has to be included for parking purposes as well. Barnhart noted the production staff will be there during the late evening/early morning hours. Barnhart indicated the kitchen staff has been included in the calculation. Schoenzeit asked if the required parking number is based on the full 12,000 square feet of the building. Barnhart indicated it is based on the retail portion of the business and not the whole building. Barnhart stated parking is a challenge with the building and that the amount of seating allowed is based on the amount of parking that is available. Barnhart stated the window of appropriate uses for this building is relatively small. Fridley displayed the section of the agreement regarding the cross parking easement over the Voyageur property, which is known as the Culver property. Fridley pointed out the agreement grants a permanent nonexclusive arrangement for driveway and parking use over and across the Voyageur easement area. Thiesse asked if the Voyageur easement parcel is only the Navarre Lane parcel. Fridley indicated it is a 33-foot by 153-foot strip of land along the property line. Thiesse stated it would be very close to covering those 19 stalls. Wilson stated the nature of the vacated roadway is it has to go to the mutual benefit of both parties. Gaffron stated it appears the Walfred easement and the Voyageur easement are two specific long, narrow areas,with one being on the Culver site and one being on the Snyder property. Gaffron stated if those specific areas can be identified on a map and they roughly provide equal parking, then it is purely a cross easement. Fridley stated the Voyageur strip is to the southeast and consists of 33 feet. Fridley stated there are essentially two 33-foot wide strips of parking, one on each property,with a grass strip in between. Fridley indicated there is parking on both sides and that it is essentially a cross parking agreement. Thiesse stated if those other parking stalls are involved,then parking would be an issue. Page 10 of 21 MINUTES OF THE ORONO PLANNING COMMISSION MEETING Monday,August 15,2016 6:30 o'clock p.m. Barnhart stated portions of the former Snyder space are being used by Culver's, which is something the Planning Commission should recognize even if enough spaces were provided on the subject property. Staff will look into the parking on both sites and the agreement further but that it is his belief there is a cross parking easement in place. Schoenzeit stated to his recollection the City has never received 11 public comments in favor of a proposal before. Leskinen commented it is encouraging that there is so much support in the area for the proposal,which will need to be taken into consideration. Leskinen stated she is also struggling with whether it should be defined as a restaurant rather than a coffee/bagel shop but that it does have limited hours for the bigger menu. Thiesse asked whether the applicant could request a zoning change if the application is denied. Barnhart indicated he could. Schoenzeit stated in his view a liquor license would put it over the edge since typically bagel/coffee shops do not offer liquor, and if it is offered,that would cross that threshold. Schoenzeit stated currently they are proposing a limited menu, limited hours,and then the production facility. Schoenzeit noted Brueggers is making bagels at their facility and Starbucks at several locations have added beer and wine,which demonstrates the definition for a coffee/bagel shop is changing. Leskinen asked if there is any request for outdoor seating. Barnhart indicated there is not. Barnhart stated any request for outdoor seating would need to come back before the Planning Commission. Barnhart stated he would agree with Commissioner Schoenzeit that liquor would tip it over into the restaurant use. Barnhart stated in looking at the four criteria for a coffee/bagel shop,this application appears to meet the criteria, and is less intense than a full-service restaurant. Leskinen stated typically high-end restaurants typically do not include a retail store within it either. Leskinen noted there is nowhere in the Code that says the City can dictate the menu. Schwingler stated while one of the residents indicated he would like to see retail on this property,that is not what is before the Planning Commission. Schwingler stated based on what is in front of the Planning Commission, in his view this is a different attraction from Culvers, and that adding beer and wine to the menu would push it over into the definition of a restaurant. Schoenzeit stated it is a huge amenity to the area. Thiesse commented he is just having difficulty not calling it a restaurant and that in his view it is a restaurant. Leskinen commented it is also a store and a bakery. Page 11 of 21 MINUTES OF THE ORONO PLANNING COMMISSION MEETING Monday,August 15,2016 6:30 o'clock p.m. Schoenzeit stated the 12,000 square feet have been carefully carved out to meet the Code, with some of the uses being lower in intensity. Leskinen stated the limited full-service menu hours helps to convince her that it should not be defined as a full-service restaurant and that she is encouraged there is such overwhelming support from the neighborhood. Schoenzeit noted some of the other businesses in the area have benefitted from the city parking lot and that there is some quid pro quo on counting some of the parking. Schwingler stated he is looking at the four points in front of the Planning Commission. Thiesse stated meeting those criteria does not necessarily make it a bagel shop. Thiesse asked why this cannot be considered a restaurant based on those same criteria. Schoenzeit stated the applicant is proposing other elements within the building, with the restaurant being a subset of that, and they will not have liquor. Schoenzeit stated in his view this is a compromise that the applicant is proposing. Schwingler stated with the production facility and retail, he does not see it as a full-service restaurant. Barnhart noted coffee and bagels are food products,which are found to be appropriate in a B-5 district in 1998. There was also concern at that time about expansion of those uses to the detriment of the adjacent neighborhood, which is why those four criteria are included. Thiesse stated the Planning Commission has a menu in front of them that has an entrée' selection that will compete with the Narrows. Barnhart stated the City does not play favorites when it comes to competition and that the impact to the neighborhood was the main concern. Schoenzeit stated it is the City's job to offer a level playing field and not help or hurt the competition. The benefit to the public is more choices and not less. Thiesse asked if he should not look at the menu that was provided. Schoenzeit stated the menu is not criteria that the code judges them on other than liquor. Thiesse stated in his opinion it should. Thiesse commented it cannot be called a bagel shop and then sell what they are proposing to sell. Wilson stated they are identifying a big issue in the way any business district is zoned and the uses as defined are very challenging. Wilson commented they are still wondering why this B zoning is next to a different B zoning and that they tried to work within the existing code. Wilson noted there is one residential home adjacent to this property and that in some of the other B districts there is also residential adjoining the districts. Bernet stated they have been voted the best pastry shop/bakery for the past ten years and not one of the best restaurants. Bernet pointed out that 80 percent of their sales come from baked goods and that the Page 12 of 21 MINUTES OF THE ORONO PLANNING COMMISSION MEETING Monday,August 15,2016 6:30 o'clock p.m. restaurant portion is not even 20 percent of their entire sales. Bernet stated the location in Maple Grove is a different concept and that the restaurant is not a real strong talking point for them because they focus primarily on baked goods. Bernet noted they would be primarily serving quiche, bagels, and bakery goods. Bernet stated in their view it would be a good addition to the community and an attraction for families. Thiesse stated he agrees it would be a benefit to the City. Schoenzeit commented the City should do what they can to make it successful. Anderst asked whether it is a bagel/coffee shop and whether they will not be offering entrees. Schoenzeit stated the Planning Commission is not looking at the menu. Anderst stated a bagel/coffee shop is one thing and a full restaurant is another thing. Anderst stated the next thing they will be asking for will be a liquor license and outdoor seating. Anderst noted they have residents right across the street on the back side. Anderst indicated he looked at this property a while back but that he could not put a restaurant there but now today they are going to put a restaurant there. Anderst stated it does not make any difference if there is liquor there or not and that in his view the rules have changed. Thiesse commented the rules have not changed. Anderst stated the City shouldn't roll over because someone is having difficulty selling the building and that in his opinion the Planning Commission should table this until the parking is figured out and what actually is going in there. Schwingler stated it is a pastry shop/production facility/retail store, and that it fits the criteria of a bagel/coffee shop. Leskinen asked whether the restaurant Mr. Anderst was going to put there was going to take up less than 1/3 of the building, which is one of the criteria. Anderst noted the kitchen, bathrooms, and storage area is not included in that calculation, which would put it way over 50 percent of the building. Anderst stated they are saying they will occupy 3,900 square feet but the kitchen is in another area. Thiesse stated the definition is no more than 50 percent of floor area should be for retail use. The food area and beverage area may not be larger than 4,000 square feet. Thiesse noted the criteria on the overhead are the four criteria that were set up to review for this bagel/coffee shop and that the applicant is proposing something that fits within those four criteria. Schwingler stated the rules have not changed. Leskinen stated they are meeting the code and that the rules are not being changed. Anderst asked if the 4,000 square feet is just for sitting. Page 13 of 21 MINUTES OF THE ORONO PLANNING COMMISSION MEETING Monday,August 15,2016 6:30 o'clock p.m. Barnhart indicated that is the retail area. Anderst stated there is no kitchen or storage area included. Anderst asked if he has 60 seats in 4,000 square feet. Bernet indicated that includes the retail portion and that there is not 4,000 square feet of sitting area. Bernet noted it also includes display cases, sitting area and the restaurant. Anderst asked if they will be able to put in 100 seats later on. Schoenzeit stated it would not fit. Leskinen noted the maximum number of seats they can have is 60. Wilson stated it would be in violation of the conditional use permit and that they are doing what they are approved for, with 60 seats being the maximum Leskinen stated they are not changing the zoning. Anderst asked how it can be approved if they do not know about the parking. Thiesse indicated approval would be contingent upon the parking issue being addressed. Anderst stated they also have to take into consideration the employee parking. Schoenzeit stated they require 49 parking spots,which they have, and that they also have a cross parking easement. Anderst stated Culver's will lose 20 parking spots then. Thiesse commented the two properties will be sharing those parking spots and that the motion will require verification of parking. Brad Haaf asked if there is a municipal parking lot across the street. Schoenzeit commented it is but that this site must provide a minimum number of parking spots. Wilson stated the people who park in the municipal lot can be park-n-ride people, service industry people or customers. Wilson stated they should not speculate and make claims on who is parking there. Wilson noted it has not been policed for the past seven years. Wilson indicated he has observed the traffic in the area and that in his view this use will work nicely there. Wilson stated the parking will work itself out once the site is functional and that they want to be a good neighbor. Schoenzeit moved to recommend approval of Application No. 16-3856,Saryan Cuisine Development,LLC,on behalf of Paul Agre Company,2380 Shadywood Road, granting of a conditional use permit per Staff's recommendations,subject to verification of the parking,with the recommendation that a change in zoning be required if liquor or additional seating is requested. Page 14 of 21 MINUTES OF THE ORONO PLANNING COMMISSION MEETING Monday,August 15,2016 6:30 o'clock p.m. Barnhart stated he is hearing that liquor sales would tip it over into the restaurant realm and that he would suggest the Planning Commission recommend no liquor sales or outdoor seating under the current B-5 zoning. Thiesse stated he dislikes the Planning Commission telling another governing body what they can and cannot do at some point in the future. Schoenzeit stated it is a recommendation, and that in the Planning Commission's discussion of coffee/bagel shop,they felt the definition does not include liquor. Schoenzeit stated it is the Planning Commission's belief that adding liquor would tip it over into restaurant zoning. Schwingler asked if outdoor seating would tip it over. Schoenzeit stated that would take it over the 60 seats and impact the parking. Barnhart stated currently they are at the maximum seating and any expansion over that would not be consistent with a coffee/bagel shop. Thiesse stated the City does not really care if it is indoor or outdoor seating as long as it is not over 60 seats. Leskinen seconded the motion. VOTE: Ayes 4,Nays 0. 6. #16-3854 ASHISH AGGARWAL ON BEHALF OF APEX HOLDINGS,LLC,2635 KELLEY PARKWAY,CONCEPT PLAN, 8:38 P.M—9:18 P.M. Ashish Aggarwal, Applicant, was present. Gaffron stated before the Planning Commission is a sketch plan review for a 70-unit two-story building that includes 24 independent living, 24 assisted, and 22 memory care. The property is served by sewer and water and access will be via Kelley Parkway only. Zoning is currently RR-1B PUD. Gaffron stated the proposed plan would require rezoning to RPUD and an amendment of the Comprehensive Plan, converting it from commercial use to residential use. Development of the property also requires re-platting from an Outlot to a Lot per the provisions of the Stone Bay PUD No. 4 Agreement. The property is located directly across Kelley Parkway from the Stone Bay Lofts at the west end of the long stormwater pond. The property is governed as part of the Stone Bay Master Development Agreement and is guided and planned for commercial office use. Gaffron noted this property has the potential to assist the City in meeting its residential urban density goals in order to allow continued development of Orono's sewered lakeshore areas as intended. Staff recommends the Planning Commission's review of the sketch plan address the following two basic questions: 1. Is this property a location where the City should depart from the current Comprehensive Plan guiding and allow for high density residential development? Page 15 of 21 MINUTES OF THE ORONO PLANNING COMMISSION MEETING Monday,August 15,2016 6:30 o'clock p.m. 2. If so, what are appropriate standards for such a development? Gaffron displayed a sketch of the proposed building and interior layout. Gaffron indicated the stormwater pond was originally sized to accommodate all elements of Stone Bay and no additional ponding will be required on this site. Because the site is so flat,the assumption is that in order to make drainage function adequately and allow for underground parking,the site will require some amount of fill, likely raising the main floor above the level of Kelley Parkway. An internal storm sewer system is likely to be constructed on the site which will discharge to the pond. The property is not within the Stormwater Overlay District. If developed as RPUD, it would be subject to a maximum hardcover per lot of 50 percent. The site plan indicates impervious coverage of 53 percent, which will have to be reduced to meet the hardcover limits. While the property is technically subject to the City's Conservation Design Ordinance, it is anticipated that due to the small size and open nature of the property, a Conservation Design Inventory and Master Plan may be unnecessary. The Planning Commission should discuss whether there is a need for an inventory and master plan. Staff recommends the following topics be considered by the Planning Commission: 1. Is there justification for the necessary CMP amendment and rezoning to allow the guiding of this property to be converted from commercial office to residential? If that conversion is not allowed, what other uses for the site might be acceptable? How will the City benefit from this development? Would the City see greater benefit by waiting for commercial development of this property or is this the appropriate time and location to make the change? 2. Is the Planning Commission comfortable with the density of the development at 20 units per acre gross? 3. If the developer had to construct a third story over part of the building in order to meet required setbacks and hardcover limits while maintaining the same 70 units,how would the Planning Commission react? One of the reasons a past Council was okay with the third story at the Lofts was its distance from Wayzata Boulevard. As a result,the extra height would be somewhat mitigated by the long views. The same justification might not apply for the proposed building. The B-6 standards for commercial office use of this site would limit the height to 30 feet,while the RPUD standards for properties currently zoned or guided in the Comprehensive Plan for commercial use would allow height to exceed 30 feet but not to exceed three stories. 4. Is there sufficient justification for flexibility in terms of the hardcover limit and the proximity of the building to Wayzata Boulevard. 5. The Planning Commission should discuss whether this development should be required to create the RPUD standard 10 percent private recreation space. Page 16 of 21 MINUTES OF THE ORONO PLANNING COMMISSION MEETING Monday,August 15,2016 6:30 o'clock p.m. 6. Staff recommends that a 10-foot trail easement be retained along the south boundary of the property. Should this developer be committed to establishing a trail along Wayzata Boulevard with a connection northward along the west end of the pond? 7. The conceptual landscaping layout does not provide any buffering from Wayzata Boulevard. The Planning Commission should discuss whether such buffering is needed from a visual perspective from off site or from a perspective of the occupants of the building. Gaffron noted the Planning Commission should provide the developer with an overview of the pertinent City ordinances and how they affect the proposed plat as well as discuss the strengths and weaknesses of the proposal. Leskinen asked if Staff has received any feedback from the public even though it was not published for a public hearing. Gaffron indicated the City did receive one comment today. Ashish Aggarwal,Applicant, stated they have owned this site for over two years and that they have explored a number of ways to develop the site. Aggarwal stated currently there is absolutely no market for any commercial on this site and that commercial tends to concentrate in the Wayzata area since those businesses can draw from the surrounding areas. Aggarwal stated people are looking for senior housing in Orono and that the people who currently live in Orono want to stay in Orono but they lack senior housing. Aggarwal stated they need to have a certain number of units in order to make the development feasible but that they do not believe they will require a third story. Aggarwal indicated a facility consisting of 70 units is a perfect size to operate and that there is some room to expand on the side if necessary. Aggarwal stated they also have the 10 percent recreation space available on the site,they are open to the fees, and any recommendations for the landscaping. Aggarwal stated there have been comments made about how various commitments are not being done at Stonebay. Aggarwal indicated they have had several conversations with the architect and the homeowners association but that he feels the association attempts to blackmail them on a lot of aspects. Aggarwal stated they are working diligently to address those concerns and that they are spending money out of their own pockets to do that. Aggarwal stated he is not sure if it is a difference of opinion or perception but that people sometimes feel developers have deep pockets and can do anything. Schoenzeit stated the only piece might be the 50-foot setback and making adjustments to the building to meet that. Viren Gori, Architect, stated the 50-foot setback is not an issue. Gori indicated the pavilion on the east end will be an amenity for the entire neighborhood and that it ties in well with the City trail that goes right by there. Gori stated the western half is the memory care and assisted living wing and that they can move that up another 20 feet and meet the setback. Gori indicated he has worked on other similar projects throughout the country and that what he has found is that senior housing is now going into semi-urban areas but not into rural areas. Gori stated most of the senior housing facilities will actually trigger a commercial boom since they add to the density. Page 17 of 21 MINUTES OF THE ORONO PLANNING COMMISSION MEETING Monday,August 15,2016 6:30 o'clock p.m. Thiesse stated in his opinion the complaint of non-completion cannot carry forward to another application. Gaffron stated it is really not relevant to this application and that the City does not have any legal way or reason to hold that against the developer on a different site. Gaffron stated the Planning Commission will just have to take it as a comment. Thiesse stated he would allow public comment. Stewart Ackman, 716 Sandstone Circle, Stonebay, stated he serves on the master board of Stonebay and that Rozanna Bradford is president of the board. Ackman stated in terms of the site plan, he has not really focused on the site plan, but in his view the 30-foot setback from Highway 12 will be a problem. Ackman stated he would like to see some trees and landscaping to help improve the aesthetics of the building. Ackman stated he would like to see the same quality of landscaping as they have at Stonebay. Ackman stated they have also talked about the proposed use and they feel the use is totally appropriate given the market. Ackman noted he is a commercial real estate agent with an office in Wayzata and that he is familiar with the markets and there is not a market for commercial. Ackman stated in regards to the complaint about the applicant, in some ways it is hard to believe they have this difficulty because they think of the applicant as being a sophisticated, capable businessman. Ackman stated every time a new neighbor moves in,they turn to the homeowners association and beg the Board for help to finish the unfinished items in their homes. Ackman stated the developers say they will do something and they don't. Ackman commented they do not like the situation and in their view it is a significant issue. Ackman stated it is not good for the health of the community,the developer, or the builder. Ackman indicated they have had a series of ongoing issues. Ackman stated last fall they had meeting after meeting with the developer and the builder to finish the simplest things, such as putting the correct numbering on the homes, painting boards underneath, and finish landscaping. Ackman noted they have a major common area that needs work currently which also entails a sidewalk going in front of the new units that are being built. Ackman indicated nothing is happening and that they have been unable to get resolution of the issue. Ackman stated the homeowners association would like to select the builder since the previous one has not done quality work. Ackman stated in his view this did not need to happen given the minimal extra cost it would have involved but that he understands these issues are not related to this sketch plan. Katie Harms, 2512 Sandstone Lane, stated she would like to state for the record she has lived for two years in the condominiums on Parkway and now at Stonebay. Harms commented she loves the area and that she believes this is a phenomenal use for the area across the street and would enhance the area. Harms stated she also has some concerns about it. Harms stated when you drive in on Stonebay Drive, for the past two months there is a big boulder that has fallen off the wall and has yet to be replaced. Harms stated it becomes a sore point when you are paying a substantial amount of money each month in association fees. Page 18 of 21 MINUTES OF THE ORONO PLANNING COMMISSION MEETING Monday,August 15,2016 6:30 o'clock p.m. Harms stated some things she is concerned about is employee parking. Harms stated in the condominiums they experience more activity than what will likely go on in a senior living facility but that there will be employee parking needed,which she is not sure is being addressed. Harms stated the overflow parking will probably be on Kelley Parkway, which will add to the congestion. Harms noted Staff's report stated that a Conservation Design Inventory is normally required and that Staff had a question of whether that is needed. Harms stated in her view past performance is indicative of future results and that in her view the Planning Commission should put in some standards that need to be followed by the developer. Harms indicated she is also concerned about the setbacks and the overall plan. There were no additional public comments. Leskinen commented it is an awesome use for the property and helps the City with its overall density. Leskinen stated if the medical building and the other parcel ever gets developed,this project will be in a good location. Thiesse stated employee parking is probably higher for this type of development but that there are likely criteria for it. Schoenzeit noted most of the residents likely will not have cars. Gori stated what is not shown on the plan is lower level parking under the independent wing,which will consist of 29 to 30 parking stalls. As it relates to employees,typically for a project this size there are 25 employees, 10 full-time, and that there is plenty of surface parking available to handle that. Gori stated in his view they have way more parking than they need on the surface. Schoenzeit pointed out there will also be guest parking needed. Gori indicated that would be surface parking. Gaffron stated there is generally a high water table all the way through this area and that there needs to be an expectation that the site will be built up higher than Kelley Parkway. Thiesse asked if parking would be allowed on Kelley. Gaffron stated there are bump-outs on the north side and those would be the only areas where parking is allowed on the street. Gaffron stated the developer will have to deal with the parking onsite. Schoenzeit stated off street walking trails would also be critical. Thiesse asked if an easement should be obtained. Gaffron stated there is a 10-foot easement from the dental office and the same should be done here. Gaffron noted what the City has done in the past is if the developer constructs the public trail,that cost is deducted from their park fees if it is constructed within the easement area. Gaffron stated if it turns out that these trails are totally within the Wayzata right-of-way,there may be no need to maintain an easement. Page 19 of 21 MINUTES OF THE ORONO PLANNING COMMISSION MEETING Monday,August 15,2016 6:30 o'clock p.m. Thiesse asked if the trail would be on the east side. Gaffron indicated there is the potential to bring a trail down from the intersection of Old Crystal Bay Road and up around the pond at the east end of the pond. Gaffron stated the location of the trail is up for discussion and that there will be a parallel sidewalk with a trail in one section. Thiesse stated in his view a trail is important but that 10 feet might not be enough given the topography. Gaffron indicated that is correct and that some tweaking of the site plan will be necessary. Schoenzeit stated a site inventory will probably not be necessary if it is nothing but scrub trees and bushes. Leskinen asked if the trail can come down on the west side of the pond. Leskinen noted there is a sidewalk currently in front of this parcel. Gaffron stated there is no reason it couldn't and that it becomes a matter of where the pedestrian traffic should be directed to. Gaffron stated it probably makes more sense to come around the pond. Thiesse stated the trail becomes less important once the highway is constructed and that he would be more concerned about maintaining the sidewalks along Kelley than constructing a trail. Schwingler commented the sidewalk does get used. Thiesse asked if a sidewalk would be required on the north side. Gaffron indicated that sidewalk already exists. Gaffron stated Staff will likely take the application before the City Council at their September 12 meeting and that there is no need for the Planning Commission to take any formal action. Thiesse stated he heard the neighborhood likes the proposal and that the developer should make sure to add the sidewalk, enough parking, landscaping, and meet the 50-foot setback from the highway. Thiesse stated he would like the developer to have an answer for the Council as to how the easterly edge of the property will be handled as it slopes to the pond. Schoenzeit stated when he hears about disputes between developers and residents, he believes it is an opportunity for the City to act as a catalyst to get them resolved. Schoenzeit stated developing in Orono is a privilege and the developer should have a good reputation. Schoenzeit stated it would be nice to hear both sides of the issue and see if something can be resolved. Schoenzeit suggested the homeowners association make a punch list that they include in their purchase agreement and then hold back a contingency fee so the projects get done. Thiesse asked about the hardcover. Gaffron stated the reduction from 53 percent to 50 percent is a fairly minor tweak. Thiesse stated he would prefer they not remove the pavilion in order to meet the hardcover. Page 20 of 21 MINUTES OF THE ORONO PLANNING COMMISSION MEETING Monday,August 15,2016 6:30 o'clock p.m. Gori noted the parking next to the pavilion is overflow parking, is not required, and could be reduced. The Planning Commission took no formal action on this item. PLANNING COMMISSION COMMENTS 7. UPDATE ON CITY COUNCIL MEETINGS HELD ON JULY 25,2016,AND AUGUST 8, 2016 Barnhart reported on the following City Council actions: • Approved the Nesbitt variance on Consent • Approved on Consent the Arbor Street application • Approved on Consent the 140 Leaf Street application • Approved the variances for the solar panels at 570 Big Island on Consent • Directed Staff to draft an approval resolution for the Charles Cudd application Barnhart noted the City has some variance training planned that the City Attorney will provide on September 26 and that all Commissioners are encouraged to attend. 8. OTHER ISSUES FOR DISCUSSION None ADJOURNMENT Schoenzeit moved,Leskinen seconded,to adjourn the Orono Planning Commission meeting at 9:29 p.m. VOTE: Ayes 4,Nays 0. ATTEST: �. John Thiesse, Chair Page 21 of 21