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HomeMy WebLinkAbout02-19-2019 Planning Commission Minutes MINUTES OF THE ORONO PLANNING COMMISSION MEETING Tuesday,February 19,2019 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 Kevin Landgraver,Dennis Libby,Chad Olson, and Jon Ressler. Representing Staff were Community Development Director Jeremy Barnhart, City Planner Melanie Curtis, and Recorder Jackie Young. Chair Thiesse called the meeting to order at 6:30 p.m., followed by the Pledge of Allegiance. APPROVAL OF MINUTES 1. APPROVAL OF PLANNING COMMISSION MEETING MINUTES OF JANUARY 22,2019 Libby moved,Landgraver seconded,to approve the minutes of the Orono Planning Commission meeting of January 22,2019,as submitted. VOTE: Ayes 5,Nays 0. NEW BUSINESS 2. LA19-000003 FINE LINE LAKESHORE SERVICE, 1795 FOX STREET, CONDITIONAL USE PERMIT,6:31 P.M.—6:40 P.M. Thomas Hamilton, Property Owner,and Jessie Johnson, Fine Line Lakeshore Service, were present. Curtis stated the applicant is proposing to install a permanent dock through the wetland on the south end of this property to reach the open water of the Long Lake Creek channel. Because of the permanent nature of the dock structure within the floodway, a conditional use permit is required. The dock does not fall under LMCD jurisdiction. A DNR aquatic vegetation management permit has been issued for the cattail removal. The proposed dock will extend approximately 195 feet from the shore. Orono's current jurisdiction over permanent docks is primarily via the City's floodplain regulations, which provide no significant standards pertinent to the approval of permanent docks. Both permanent and seasonal docks fall under the zoning category of accessory structures. With the exception of the RS District, which is Deering Island or Big Island, one cannot have a permanent or seasonal dock without a principal residence structure. The property is zoned RR-1B, and a zoning permit will be required to document the existence and construction of the permanent dock and conditional use permit. The portion within the wetland is limited to eight feet maximum width. The proposed dock is 3.5 feet wide with a 7' x 20' platform on the end at the open water. Public comments were received and are included in the Commissioners' packets. Staff recommends approval of the conditional use permit for construction of the proposed permanent dock subject to the following conditions: 1. The dock may be allowed as long as it conforms to the permit issued by the DNR and is in conformity with the rules and regulations of applicable agencies; and Page 1 of 16 MINUTES OF THE ORONO PLANNING COMMISSION MEETING Tuesday,February 19,2019 6:30 o'clock p.m. 2. The dock is not to be used for commercial purposes or rented. The Planning Commission had no questions for Staff. Tom Hamilton,property owner, stated they would like to install a dock out to the creek. A call has been received from one neighbor that has a concern with jet skis. Hamilton indicated he is just planning on having a fishing boat and also fishing off the dock with his two children. The Dakota Bridge is in the area. Measuring from the bottom of the bridge to the water is 48 inches, so it would not be possible to fit a jet ski under the bridge. There are also no plans to buy a jet ski. Libby asked what type of pilings would be used. Jessie Johnson, Fine Line, indicated it is a metal frame dock and can be easily removed. Because the dock would stay in year in/year out, it is termed a permanent dock. Libby commented he has not ever really seen any boat traffic in this area. Libby asked what type of fishing boat the owner has. Hamilton indicated he is looking at a 14-foot boat with a small 20 horsepower motor. On the other side off of Brown Road there is a dock and he has seen people canoe or kayak down it and only one motorized boat on that side. Libby stated he was not aware that they can have motorized boats in that area. Hamilton stated the DNR does allow motorized traffic and that they need to obtain a conditional use permit for the dock. Libby asked whether the LMCD has any governance over this dock. Curtis stated they do not. Johnson stated he believe the LMCD's jurisdiction ends at the edge. The water is not very deep by the cattails so it was determined they would need to extend the dock further out. Chair Thiesse opened the public hearing at 6:38p.m. There were no public comments. Chair Thiesse closed the public hearing at 6:38 p.m. Thiesse asked if Orono has any ordinance regulating the size of the platform at the end of the dock. Curtis stated Orono does not regulate structures in the water and that possibly the DNR would have jurisdiction over that. The LMCD,the Watershed District, and the DNR have seen and weighed in on this request. Thiess stated his biggest concern is the size of the platform. Page 2 of 16 MINUTES OF THE ORONO PLANNING COMMISSION MEETING Tuesday,February 19,2019 6:30 o'clock p.m. Olson moved,Landgraver seconded,to recommend approval of Application No. LA19-000003, Fine Line Lakeshore Service, 1795 Fox Street,granting of a conditional use permit. VOTE: Ayes 5,Nays 0. 3. LA19-000004 CITY HOMES,3369 CRYSTAL BAY ROAD,VARIANCES,6:40 P.M.— 6:54 P.M. Kristi,Alexander Design Group, and Joshua Jabs,property owner,were present. Curtis stated the applicants are requesting a number of variances in order to construct a new home on the property. Variances for lot area, lot width, hardcover,driveway width in the 75-foot setback are requested in addition to 75-foot setback and rear yard setback variances for the house and deck. The applicant is also proposing to restore the grades to better flow into the neighboring lots. As a result, a variance is requested to the defined height calculation. The lot is nonconforming with respect to area and width and the 75-foot setback from the lake bisects the lot. The applicant's request for hardcover, setback, and height variances results in the property's inability to conform to all of the lot of record standards above. The existing home to be removed encroaches into the 75-foot sand average lakeshore setbacks.The new home is proposed to meet the average lakeshore setback and will encroach approximately five feet into the 75-foot setback with the covered stoop and the home will encroach about two feet. The home is proposed with a 23-foot rear setback where 30 feet is required,and the proposed deck is shown at 15 feet. The proposed hardcover level of 39.9 percent is a 322 square foot increase from the existing conditions. The increase is primarily resulting from the increased building coverage. The proposed home is nearly twice the size of the existing home. However, when you include the existing detached garage,the overall proposed building coverage level is only increasing by 355 square feet. the applicant is not maximizing the proposed building coverage due to the limiting setbacks and hardcover. The proposed driveway has an 11.5-foot width at the street and a 25-foot wide garage access and parking area. The hardcover regulations specify a minimum width to match the garage doors serving the home. Another code provision,however, specifies an 8-foot maximum width in the 75-foot zone. The two code provisions are in conflict with each other and Staff is not sure whether that provision is intended to apply in this situation since the home is so close to the lake. Building height is measured from the highest"existing grade"from where the footprint exists on the lot. The existing topography appears to be the result of grade manipulations to facilitate the rear yard detached garage. The retaining walls along the rear property line created a flat area inconsistent with the adjacent neighboring properties and inconsistent with a`natural grade'. The applicant proposes to fill in this area and return it to the original grades. The highest"existing grade"from which the height calculation is based is 939.3' rather than 946', which is the highest grade in the proposed grading plan. The defined building height based on 939.3' highest existing is 36.7',which is 6.7 feet taller than what is permitted. The applicant is requesting variance approval to allow him to restore the grades and use the highest"existing adjacent grade" of 946', which would be more consistent with the immediate neighborhood and make the height calculation conforming. Page 3 of 16 MINUTES OF THE ORONO PLANNING COMMISSION MEETING Tuesday,February 19,2019 6:30 o'clock p.m. Staff finds there are practical difficulties inherent to the size, shape,location of the roadway and lake, and the shape of the lake justifying the variances. Orono has adopted various ordinances over the past few years to address these inadequacies on small and narrow lots but,however, not all lots can be addressed by those code changes. No public comments have been received. Staff recommends approval. If the Planning Commission is in agreement with Staff, a recommendation for approval should be made. Ressler asked for clarification on the height variance. Curtis noted the retaining walls and stairs coming down from the trail area and surrounding the rear yard are based on the existing condition and extend into the neighboring property. Based on existing conditions,the southwest corner of the house is 939.3',which is technically the existing grade that would be used for the height calculation. The applicant is suggesting the existing grade is an artificial condition and that he would like to restore the original grade and level out the rear to make it consistent,which would make that area 946 feet. Curtis displayed some photographs of the site. Landgraver asked if it is recreating the slope. Curtis indicated it is in order to create a slope that is more natural. Thiesse asked if the proposed survey is correct. Curtis stated the applicant will need to speak to that, but that they do have to join into the existing wall on the other property. Curtis stated the elevation at the corner says 940.5' at the bottom of the wall and 940.1' is what is shown. Thiesse asked if they want to use 946' as their grade. Curtis indicated that is correct. Kristi with Alexander Design Group stated the discrepancy in the hardcover relates to the deck and that they have actually lowered that number slightly. Chair Thiesse opened the public hearing at 6:50 p.m. There were no public comments. Chair Thiesse closed the public hearing at 6:50 p.m. Thiesse commented it is a nice looking house. Landgraver stated every home in this area likely has some type of variance. Page 4 of 16 MINUTES OF THE ORONO PLANNING COMMISSION MEETING Tuesday,February 19,2019 6:30 o'clock p.m. Ressler stated he does not remember any other homes in the neighborhood having more than three stories. Thiesse stated the home next to this one is relatively high. Curtis illustrated the adjacent home and the proposed residence. Thiesse stated it appears to be more than three stories on the street side. Curtis stated if Commissioner Thiesse is referring to the top area as more than three stories,that is an access point to the deck and the height is measured from the midpoint. Orono no longer regulates the number of stories,which resolves that concern,but it is calculated into the height. Landgraver commented it is a difficult lot to work with,which is a practical difficulty,but that he would like to see the hardcover reduced somewhat if possible. Landgraver noted they are under the structural coverage limit. Libby asked whether the City Engineer has reviewed the drainage on the site. Curtis indicated he has not at this time. Libby stated his only concern would be the drainage. Curtis noted grading and drainage would be reviewed at the time of building permit. Landgraver moved,Olson seconded,to recommend approval of Application No. LA19-000004, City Homes,3369 Crystal Bay Road,granting of variances subject to the recommendations of Staff. VOTE: Ayes 5,Nays 0. 4. LA19-000005 STEVE SCHOTTLER,2740 SHADYWOOD ROAD,AFTER-THE-FACT VARIANCE,6:54 P.M.—7:05 P.M. Steve Schottler,Applicant,was present. Curtis stated in 2016 the applicants built a screen porch addition to the home which exists on the property today without proper permits. Following a stop work notice for the unpermitted construction in 2017,the applicants applied for and received an after-the-fact approval of lake setback, average lakeshore setback, and 75-foot hardcover variances allowing the porch to remain. There were delays and the variances expired. The applicants have re-evaluated and revised their project and have reduced the size of the proposed screen porch,thus eliminating two of the variances. An average lakeshore setback is still necessary. The applicants are currently proposing a 26' x 26' screen porch on the lakeside of the home 76 feet from the OHWL,as much as 14 feet lakeward of the average lakeshore setback. This request has neighbor support. Due to the position of this home and neighboring homes in relation to both Shadywood Road and the lake, Staff finds there are practical difficulties supporting the average lakeshore setback variance for the reduced 26' x 26' screen porch. Page 5 of 16 MINUTES OF THE ORONO PLANNING COMMISSION MEETING Tuesday,February 19,2019 6:30 o'clock p.m. Staff recommends approval. Landgraver asked if Staff could display a picture of the neighboring home. Landgraver asked if the porch would alter the average lakeshore setback for the neighbors. Curtis indicated it would pull it out towards the lake and that the lots are tucked in there due to the cove. Landgraver commented any time there is an encroachment into the average lakeshore, it creates a creeping forward of the adjacent properties and that he is just trying to get a sense of how that would be impacted. Thiesse stated that is the reason for the 75-foot setback. Steve Schottler,Applicant, stated the ultimate goal was to modify the project. Last year they went through the process with the City and then hired a structural engineer. After getting approval on those plans, a number of contractors said that what the structural engineer wanted them to do was virtually impossible and that it would cost two to three times more than if the structure was just taken down. The thought was then to rebuild it. In doing that, it affected the previous variance and Staff recommended that a new application be filed,which is why he is back here now. The porch has been shortened six feet so it is even further from the lake,which eliminated the variance to the 75-foot setback. This is a unique situation in that the cove is on one side and the lake is on the other side. One neighbor is 65 feet from the lake and the other is 95 feet,which is where this property gets caught. Schottler stated they would like to rebuild it the right way but just a little bit smaller. Chair Thiesse opened the public hearing at 7:01 p.m. There were no public comments. Chair Thiesse closed the public hearing at 7:01 p.m. Libby commented the meandering the shoreline makes it difficult to measure it from a straight line and that the support of the neighborhood is an important consideration. If there are no objections from the nearby neighbors,that would tend to make him favor the variances. Libby stated under the circumstances and due to the unique situation with the location of the house, he would tend to favor the variances. Ressler stated he would be in support of it considering the way the lakeshore goes and that the proposal does not look like it is an aggressive change in the average lakeshore setback line. Olson stated he is in support of it,especially since the project is smaller than what was originally approved. Landgraver commented it is an improvement over the first project, and while he has a concern with the creeping forward in the average lakeshore setback line,he is in support of it. Thiesse noted the applicant has improved upon what was approved last year, but that because the variances have expired,it should perhaps be considered a blank sheet. Thiesse stated because the Planning Commission approved variances previously,that might be the way to go. Page 6 of 16 MINUTES OF THE ORONO PLANNING COMMISSION MEETING Tuesday,February 19,2019 6:30 o'clock p.m. Ressler moved,Libby seconded,to recommend approval of Application No. LA19-000005, Steve Schottler,2740 Shadywood Road,granting of an after-the-fact variance to the average lakeshore setback. VOTE: Ayes 5,Nays 0. 5. LA18-000104 GARY ANDERST,3382 SHORELINE DRIVE,AMENDMENT TO CONDITIONAL USE PERMIT,7:05 P.M.—7:30 P.M. Gary Anderst,Applicant,was present. Barnhart stated the applicant is requesting to consolidate the Narrows business and the Lakeroom restaurant into one business to allow one liquor license.A secondary request is to adopt a new conditional use permit to consolidate the conditions improved previously. In 2000,the City issued a conditional use permit to permit the creation of a new class II restaurant(the Lakeroom). The conditional use permit included a requirement that the new restaurant hold a separate liquor license from the Narrows Saloon. Since the original conditional use permit in 2000,the City has granted a number of conditional use permits for the property as outlined in Staff report. Consolidating both businesses into one liquor license is considered an expansion of one of the businesses requiring at least an amendment to the conditional use permit. Consolidation of the two businesses could permit expansion of the live entertainment portion of the business,to the possible detriment of the neighboring property owners. In addition,the applicant is requesting that the hours of operation for the restaurant side be permitted to be extended to 1 p.m. in order to be consistent on both sides. Currently the restaurant is allowed to be open from 8 a.m.to 11 p.m. Sunday through Thursday and 8 a.m.to 1 a.m. Friday and Saturday. No change is proposed to the hours for the live entertainment. Staff feels this request is reasonable. Staff proposes to codify the size of the Narrows and the stage as follows: The maximum area for a stage and/or live entertainment shall not exceed 15 feet by 12 feet.the maximum area to receive live entertainment shall not exceed 28'4"x 56'3". An expansion of one or both of these parameters would require an amendment to the conditional use permit. At this time the applicant is not proposing to expand the Narrows space. In the past the live music has generated concerns from the neighborhood. A number of conditions were imposed on the business to address those concerns. The City has not received a noise complaint about the Narrows for some time. Staff has been working with the property owner regarding his application. Staff proposes consolidating conditions imposed previously into the revised resolution, in addition to new and modified conditions. The Lakeroom is not yet open but it will be opening in the near future. Landgraver asked why there was a requirement for separate liquor licenses. Barnhart stated his understanding is that one liquor license has to go to one business and that it is currently two businesses. Olson asked if there are two separate tax ID numbers. Page 7 of 16 MINUTES OF THE ORONO PLANNING COMMISSION MEETING Tuesday,February 19,2019 6:30 o'clock p.m. Barnhart stated that would be his assumption. Thiesse noted if there is only one license and one business loses the license,both would lose it. Barnhart stated only one liquor license is being proposed,which would allow patrons to bring drinks from one area of the structure into the other area, and if there were two separate liquor licenses,they would not be able to do that. Gary Anderst,Applicant,stated as it relates to the liquor license request, it is not so much the cost of the license but rather the compliance. Movement of liquor after it is purchased is one issue but it is also the storage. If one side ran out of something,they cannot borrow some from the other side. The liquor is also purchased from two different accounts. Currently there is a separate tax ID for the Lakeroom but both the Lakeroom and the Narrows are operating under one general ledger and are two separate businesses within the same property. As it relates to the hours,Anderst indicated they can work with the current hours contained in the conditional use permits, but that the issue relates to special events. Anderst stated they do not plan on being open to 1 p.m. every Monday through Thursday but that they already have had requests for special events like Christmas parties,which may occur during the week. One thought was to have one time frame for when the businesses will be open. Anderst stated they did not want to reduce the saloon hours and normally the music is done by 10 p.m. on a weekday night,with the saloon usually closing down shortly after that. Changing the hours was to be more or less consistent with the hours for the Narrows. Anderst stated he understands there is a risk of losing the license for both businesses if it is combined but that there are also compliance issues that have to be dealt with. Anderst stated they have been working a long time in order to make this happen and that they are optimistic it will be a successful business and is something that is needed in the community. Landgraver asked if there are two subsidiaries. Anderst indicated there is Orono Liquor,which has the liquor license, and then there is the Lakeroom, which is an LLC, and then there is the Narrows, LLC,which owns the buildings. They are proposing to operate the businesses under Orono Liquor. Libby asked if there has been any thought or design created so they can be two contiguous businesses. If there is only one liquor license,would they be able to have overflow from one area to area. Anderst stated right now the building is not designed to do that. There is a common vestibule but a separate entrance to each business currently. There is also a second level to the Lakeroom, which is for special events. Libby asked what the seating capacity is. Anderst indicated the occupancy currently is approximately 160 and that hopefully the downstairs will be used for overflow if the Lakeroom gets busy. Libby asked if there is any liquor license that would allow them to serve liquor in the dining room. Page 8 of 16 MINUTES OF THE ORONO PLANNING COMMISSION MEETING Tuesday,February 19,2019 6:30 o'clock p.m. Anderst stated he has chosen not to apply for a liquor license for the Lakeroom at this time. Libby asked if a single liquor license would be a blanket one for both places. Anderst indicated that is correct. Chair Thiesse opened the public hearing at 7:23 p.m. There were no public comments. Chair Thiesse closed the public hearing at 7:23 p.m. Landgraver stated the last time the City looked at this there was a major concern about the noise, but no one has come forward to express a concern about that tonight. Thiesse stated the one patio has been open for a few years now and there has not been a complaint about the noise. Libby noted there is not very many residential properties near this building. Olson stated the noise from downstairs likely would not carry very far. Thiesse asked if a future buyer could combine the two sections to make a larger music venue. Barnhart indicated they would need to go through the conditional use permit process. Ressler stated he is completely supportive of the application and that he does not have a problem with the proposed hours, especially since it is near a busy intersection and road,which likely blocks out a lot of the noise. When combining the liquor license, Ressler stated the one thing he would look at is whether there is one business or two businesses and that it would be nice to be able to go from one section to the other section but that he is not here to design the layout of the building. Olson commented the business concept is similar to Lord Fletcher's. Ressler indicated he is in support of it. Landgraver moved,Ressler seconded,to recommend approval of Application No. LA18-000104, Gary Anderst,3382 Shoreline Drive. Landgraver noted the closing time will need to be cleaned up in a couple of spots in the resolution. VOTE: Ayes 5,Nays 0. 6. LA19-000006 TODD CUSHMAN/RICK BRAMA,PID 33-118-23-11-0060,NORTHWEST QUADRANT OF WILLOW AND WAYZATA BOULEVARD, CONCEPT PLAN,7:30 P.M.—8:00 P.M. Roger Fink,Trident Development; Todd Cashman and Rick Brama,Applicants, were present. Page 9 of 16 MINUTES OF THE ORONO PLANNING COMMISSION MEETING Tuesday,February 19,2019 6:30 o'clock p.m. Barnhart stated the City has received a sketch plan proposal for a proposed 2 to 2.5 story apartment building consisting of between 75 and 90 units, underground parking, and surface parking. The L-shaped building would be located south of Kelley Parkway,north of Wayzata Boulevard,and west of Willow Drive. Access to the site is planned via two curb cuts onto Kelley Parkway. There are no curb cuts on the north side of Kelley Parkway to have the intersections line up. There is no proposed vehicular access onto Wayzata Boulevard or willow Drive. Any intersection with these roads would not be supported by staff, Hennepin County, or the Comprehensive Plan. There is an existing sidewalk along Kelley Parkway. The developer shows an extension of the trail along the west side of Willow Parkway, south to the Willow Drive/Wayzata Boulevard intersection where a crosswalk is planned. The color palette would be similar to the Stone Bay development. Staff has not done any analysis of the height of the building. The applicant is aware of how the height calculation is done and has not requested any deviation from that. The site plan shows both surface and underground parking. The number of stalls shown currently can support 89 units. The proposal does include a mix of apartment styles, ranging from one to three bedrooms and a studio unit. The proposal meets the height requirement,the setbacks, and the zoning use for this site. MUSA is available and the density is within the guidelines. The concept proposal is the first step in the RPUD process. The density for this site was changed from office use to residential at 20 to 25 units per acre in the Comprehensive Plan. This proposal would be contingent upon the formal acceptance by the Metropolitan Council of the 2040 Comprehensive Plan. Following Metropolitan Council approval,the project will require master plan approval, a zone change to RPUD, and platting. Landgraver asked if the holding pond needs to be expanded or modified to handle additional runoff and whether that has been scheduled to happen. Barnhart indicated the senior housing project sends its stormwater runoff into the pond. Staff's understanding is that some modifications will be necessary to meet the new rules and regulations. The water retention rules have changed since 2000 or 2001,which is why some modifications will likely be necessary. That level of detail will be looked at the time the grading and drainage plans are completed. Landgraver asked who would pay for the cost of the stormwater pond expansion. Barnhart indicated it would be the applicant. The runoff would need to either be retained on site or the applicant will need to acquire additional land to handle the runoff. Landgraver asked who would pay for it 15 years from now. Barnhart indicated it would likely be the City's responsibility but that he would need to verify that. The stormwater sewer system is similar to the City's road system and ultimately the City will need to maintain that. Roger Fink, Senior Vice President of Trident Development, stated they are based out of St. Cloud and were formed approximately 13 years ago. The company's business model is to design these properties for Page 10 of 16 MINUTES OF THE ORONO PLANNING COMMISSION MEETING Tuesday,February 19,2019 6:30 o'clock p.m. long-term ownership and that they intend to build a portfolio of income properties. Trident has a sister company also officed in St. Cloud by the name of Lion Contracting, who has built all the properties that Trident has developed over the last 13 years. Trident has constructed approximately 900 apartment units ranging from Chanhassen and the other suburbs of the metropolitan area. Trident also specializes in the senior living/senior housing market and have constructed over 1,000 units. Fink stated they would like to name this development Crystal Bay Luxury Apartments or Crystal Bay Luxury Homes. An analysis of the community itself,as well as the pricing and unit costs, has been done to some degree and it is felt that this development will attract a wide variety of professional singles and young couples, empty nesters, and transitional homeowners. Trident also expects to see a population of millennials who prefer rental housing. The household income brackets are anticipated to range between $31,000 to $65,000. The lower brackets would probably qualify for the studio apartments and occupants of the two-bedroom units would need to earn around$65,000. Fink noted this is not an income qualified project, but that Trident does verify income and employment of all renters. Trident will be opening a brand-new property this month in Maple Grove and this development will probably have similar amenities, such as 9-foot ceilings, a kitchen appliance package, hardwood cabinetry with pulls and handles, a functional center island, washer and drier, luxury vinyl flooring throughout most of the unit,granite countertops,LED lighting package, self-contained air and heat systems,window treatments on all the windows, a private balcony,two panel decorative interior doors, and a curved wall feature in some of the interior units. Outside the units in the common areas will be a spacious lobby. All floors will be serviced by elevators. The building will also include a fitness center, community party room, interior trash and recycling space located in the underground parking garage, bicycle storage,a game room, lockers, and outdoor patio space with seating and a fire pit. Another popular amenity is a package handling system with the tenant being notified by email or text of a package delivery. The building will have secured controlled building entry points as well as a surveillance camera system. It has also been Trident's practice to hire a third-party professional management company and they will be relied upon to enforce the rules, perform background/credit checks, and employment/income verifications. Fink stated they are excited to bring this development opportunity to Orono and that in their view they can meet or exceed all of the City's performance standards. Libby commented this is a 2151 century rental housing development and is commiserate of other well- thought of developments. Libby noted there is good demand for housing in this area and that Mr. Fink has made it quite clear that this is not low-income housing. As it relates to the studio units, Libby commented he has seen an escalated spiral for rental rates in the Twin Cities area,and asked whether the rent would be about 50 percent of the gross monthly income of someone who is making around$31,000. Fink indicated they have recently updated some proforma market rates for another property in Minneapolis and that they brought this development into line with those rents. Trident has not done a unit by unit pricing for this project yet but it likely would range around$2 per square foot or$1,100 for a studio apartment. Page 11 of 16 MINUTES OF THE ORONO PLANNING COMMISSION MEETING Tuesday,February 19,2019 6:30 o'clock p.m. Libby commented that is comparable with other communities. Fink stated as the units get larger,the rent per square foot will decline to around $1.75 for the larger units and$1.80 for the two-bedroom units. Ressler asked whether this project would help with the City's density numbers. Barnhart indicated it would help the City meet their goals. Ressler noted there are not a lot of places where this type of development can be built in Orono. Ressler stated in his view it is a nice plan and does not appear to be overbuilt. Landgraver asked whether the outdoor amenities have been determined yet. Fink indicated they are still developing that aspect. Landgraver asked how critical the third floor is in terms of the economics. Fink indicated it is critical. Landgraver noted traffic on Kelley has gotten somewhat better since the road improvements and asked whether the existing residents on Crystal Bay will be up in arms due to any additional traffic on Kelley. Barnhart stated the former school configuration improvements on County Road 6 did contribute to traffic being backed up on County Road 6,which has been somewhat solved. The engineers have also discussed improvements to this intersection to line it up on the other side,and so the situation will continue to improve. The City would prefer to have traffic on Kelley rather than Wayzata Boulevard. Landgraver asked whether there will be sidewalk all the way to the school on Kelley or to Old Crystal Bay on one side of the road. Landgraver commented that if this development has families with children, they will likely want to walk to school. Barnhart indicated the sidewalk is located on the south side. Olson indicated he does not have any additional questions at this time. Libby asked if he knows what radius the tenants will be drawn from. Fink stated he is not sure he has a good answer to that right now and that a market analysis will look at that. Ressler asked what traffic levels the City anticipates between residential and commericla. Barnhart stated he recalls a study for a proposed apartment building on Shadywood and that the residential development generated less traffic than most desirable commercial developments. Page 12 of 16 MINUTES OF THE ORONO PLANNING COMMISSION MEETING Tuesday,February 19,2019 6:30 o'clock p.m. Thiesse commented he likes the layout of the site and the way the building fits into the neighborhood. If the easterly connection to Kelley were skewed to the west, it would generate less backup onto Willow for right turns and provide better safety and sightlines. Fink stated he did notice that and that they will look into it. The big unknown at this time is the water table, which would impact the underground parking. Thiesse noted the next road to the west is Old Crystal Bay Road and that the proposed name might generate some confusion. The Planning Commission took no formal action on this item. 7. LA19-000002 SCOTT GATES,4400 DEERING ISLAND, MUSA SERVICE FROM MOUND TO DEERING ISLAND,CONCEPT COMPREHENSIVE PLAN AMENDMENT,8:02 P.M.—8:30 P.M. Scott Gates,Applicant,was present. Barnhart stated this is a request to modify the Comprehensive Plan once it is approved by the Metropolitan Council. The modification is to expand the MUSA boundary by including Deering Island, which is a 2.79 acre island within Lake Minnetonka and is located on the west side of the city limits of Orono. The property owner also owns a lot in Mound most proximate to Deering Island. The property owner would like to extend sanitary sewer services underneath the channel from Mound to Deering Island. The Comprehensive Plan does not include Deering Island as part of MUSA. The City of Mound has provided a preliminary response related to the request and is included within staff report. Mound would serve the island and bill the property owner directly. Orono's Comprehensive Plan does contemplate expansion of MUSA and contains some priority properties for that expansion. The City has a lot of discretion on changes to the Comprehensive Plan. The first guideline is to look to serve properties that are adjacent to the lake. The 2040 Comprehensive Plan includes six priorities as guides for considering modification to the MUSA. The first priority is the property must abut the shoreline of Lake Minnetonka,which this property does. The existing home must have a failing or non-conforming septic system and replacement drain field sites are not available. In the City's sewered areas,the City has to maintain a general density of 3.0 units or more. Orono's density ratio is currently above three units, and if the Comprehensive Plan is amended, it would drop it slightly to 4.11 percent. Additional information as to the status of the system and alternative sites is necessary prior to formal application. Based on the information provided, it does appear that the island fits Priority 1 and condition two can be satisfied. Condition 3 cannot be fully met. At this time the applicant is looking for feedback on the proposed modification to the Comprehensive Plan. Landgraver asked if electric or other utilities already run out to this property. Page 13 of 16 MINUTES OF THE ORONO PLANNING COMMISSION MEETING Tuesday,February 19,2019 6:30 o'clock p.m. Barnhart indicated they do. Libby asked if natural gas is provided to the property. Barnhart indicated he does not know the answer to that. Scott Gates,Applicant, stated they did not plan to do this up front, but in working on the construction of the Mound property,the discussion came up with Mound staff about running sewer out there. Some research has been done on it, including looking at the costs. Running a sewer line to the property would be more expensive short-term but long-term it has some positive benefits. Gates indicated he has spoken with Orono staff and everyone agrees it is a net environmental benefit. Deering Island has a slightly higher elevation and is approximately 12 feet above sea level. The property consists of 2.77 acres, but there is a pretty limited area to put a septic system since much of the property is wooded. Overall extending the sewer line has a lot of benefits. Gates stated while it is not a certainty at this point, in their preliminary review of it, it makes sense to look at it further. Extending the water line will also be looked at in conjunction with this project. The property owner intends this to be a family compound and the property cannot be subdivided. Currently there is a small cabin on the property that has been there for a number of years. Gates stated they would also have to enter into an agreement with the City of Mound and obtain some additional permits, but that he does not believe that will be a problem since Mound staff suggested it. Thiesse asked if this is strictly to discuss a proposed change to the Comprehensive Plan. Barnhart indicated that is correct. Landgraver asked if there is any intention to rent out the island. Gates stated not to the best of his knowledge at this point and that the intent right now is to use it for family and friends. Libby asked how big the sewer line would be. Gates indicated it looks like it would be a pressurized two to four-inch line but that it has not been fully engineered at this point. Minimum coverage would be ten feet below the bottom of the shore. Gates stated boring under the lake would be similar to boring a line in under the ground. Landgraver asked if there are other private islands in the City that might be interested in doing this. Barnhart stated the City does have some sewer lines that go beneath the lake currently, both city-owned and private, and that there potentially are other islands. The RS zoning district is a 5-acre lot size. Deering Island is smaller than that,which means it cannot be subdivided. Thiesse asked if an RPUD is a possibility. Barnhart stated it would be a pretty drastic deviation from current practice. Page 14 of 16 MINUTES OF THE ORONO PLANNING COMMISSION MEETING Tuesday,February 19,2019 6:30 o'clock p.m. Thiesse stated to his understanding the chain of islands in Mound have sanitary sewer. The biggest concern is,once sewer is there, what will happen with the property twenty years down the road. Ressler asked who will pay to maintain it after it is installed. Thiesse noted the Planning Commission is only looking at expanding the MUSA. Gates stated his understanding is it would be treated as a residential service from the street in Mound. Ressler stated it is a good idea in general to minimize risk for pollution to the lake. Since there does not appear to be any future costs incurred by the City,there does not appear to be really any downside to it. Barnhart noted the City has built up their density in certain areas,which allows the MUSA to be expanded to more sensitive areas. Ressler asked if sewer has been run out to Big Island. Barnhart indicated it has not, and that if anyone is interested in doing that,they would need to incur the expenses for that. Libby asked what is existing on the island. Gates indicated he is not sure. Libby stated he is a strong proponent of municipal rather than private,but that it is environmentally more sound to do this. Landgraver asked to what point the property owner would be responsible to. Thiesse indicated it would be the property line off the street. Landgraver asked if this property would require a separate connection since there is a common owner of both the peninsula and the island. Barnhart indicated that is correct and that there would be an easement required. Libby asked whether the property would be required to have a stop valve. Gates stated he does not know the exact engineering requirements but that it will all be done in conjunction with Mound engineers and the applicant's engineers. Gates noted a septic system costs more to install on an island,which also helps mitigate some of the costs. Thiesse asked if an easement would be required for the portion under the lake. Barnhart stated it likely would be considered public land and that an easement would not be required but Staff would need to check into that. Gates stated the LMCD has authority over the lake surface and not underneath the lake bottom. Page 15 of 16 MINUTES OF THE ORONO PLANNING COMMISSION MEETING Tuesday,February 19,2019 6:30 o'clock p.m. Thiesse stated in his view it is a good deal and that he does not see any downside to the City of Orono. The Planning Commission took no formal action on this item. 8. UPDATE ON FEBRUARY 11,2019, CITY COUNCIL MEETING Barnhart reported the City Council took the following actions at their February 11 meeting: • Approved the preliminary plat for 3087 Orono Orchard Road. • Approved the variance for the fence on Ferndale. • Approved the variance for the accessory building in front of a principal structure. • Approved the variance at 835 Forest Arms Lane for the average lakeshore setback. • Approved on consent the application for 2455 North Shore for a variance and IUP. • The City Council supported the sketch plan at 690 Brown Road, which was similar to the recommendation of the Planning Commission. • Approved the variance for the air-conditioning unit for AJ Helgerson. • Denied the variance for the solar panels at 240 Wakefield Road. The City Council viewed that as leaning towards a change in the code and the Code Review Committee will be reviewing it to see whether there should be a change in the code. Barnhart stated the Metropolitan Council has provided some feedback on the Comprehensive Plan and that City Staff has resubmitted some corrections or modifications to the plan. The City Council approved those changes at their February 11 meeting. 9. OTHER ISSUES FOR DISCUSSION Ressler stated he would like the City of Orono to explore different options for high-speed Internet and that City Administrator Rief was going to gather some information on that. Libby stated part of the issue is that Century Link has a set service cost and Orono does not generate enough benefit to them to expand their system. ADJOURNMENT Ressler moved,Olson seconded,to adjourn the Orono Planning Commission meeting at 8:37 p.m. VOTE: Ayes 5,Nays 0. ATTEST: John Thiesse, Chair Page 16 of 16