HomeMy WebLinkAboutItem 03.aMemorandum
To: Mayor and City Council
From: Justin Miller, City Administrator
Copy: Daryl Morey, Planning Director
Dave Olson, Community and Economic Development Director
Date: April 11,2o:6
Subject: Continued Discussion on Strategic Multifamily Zoning Options
City of Lakeville
Administration
At the March 28th city council work session, staff was directed to compile additional
information regarding high density housing and its possible inclusion in the City of Lakeville's
various zoning districts. Attached to this memo is a report from Dan Licht of The Planning
Company, who serves as our planning consultant. His report elaborates on the main areas of
focus that the city council recently discussed.
Staff brought this topic forward last month to make the city council aware of the high level of
interest in this housing type from the development community. Market -generated interest in
this sector is not isolated to Lakeville, nor is it unusual for the city to see a spike in
development interest in various land uses. Past experience in Lakeville has shown that
development proposals sometimes come in "waves", with previous spikes in proposals being
banks, senior housing, and gas stations, just to name a few. It is appropriate for the city to
recognize these market pressures and discuss their place in the Lakeville community.
Lakeville has been well planned from a land use perspective and will continue to be so with the
deliberate work of staff, the planning commission and the city council. High density housing
includes a wide spectrum of housing options, including apartments, senior housing,
townhomes and condominiums, just to name a few. Each of these have their appropriate place
in the market and it is staff's intention to help the city council evaluate these options and
implement your desires as we continue to evaluate proposals as they are submitted.
3601 Thurston Avenue N, Suite 100
Anoka, MN 55303
Phone: 763.231.5840
Facsimile: 763.427.0520
TPCTPC@PlanningCo. com
MEMORANDUM
TO: Daryl Morey
FROM: D. Daniel Licht, AICP
DATE: 8 April 2016
RE: Lakeville — Zoning Ordinance; Multiple Family Development
TPC FILE: 135.01
BACKGROUND
The City Council, at a work session on 28 March 2016, requested that City staff provide
preliminary information as to possible actions that could be taken within the City's land use
controls to address recent requests for multiple family development. This effort is being
initiated in response to contacts made by several developers interested in possible multiple
family developments and in consideration of the Economic Development Commission's 2014-
2016 Strategic Plan for Economic Development that identified high density housing as a
strategic priority. The Planning Commission has not reviewed or provided comment on this
topic to date, but has in response to other residential development issues recently indicated
openness to considering options to address the market demand for higher density housing in
the City.
Exhibits:
A. Map of parcels zoned RH District and 0-R District
B. Map of parcels zoned RH District, O -R District and C District
ANALYSIS
Comprehensive Plan. The 2008 Lakeville Comprehensive Plan includes the policy to provide
for a mix of housing types in Lakeville recognizing the development of detached single family
townhouses, two family homes, townhouses, and multiple family housing options as
opportunities to supplement and expand upon existing single family homes in consideration of
community priorities and local market demands. The 2030 Land Use Plan designates areas for
high density residential development as part of the City's residential land uses meeting lifecycle
and work force housing needs of the community. The areas guided for high density residential
uses on the 2030 Land Use Plan reflect proximity to transit corridors and commercial nodes of
development for convenient access and increased market support for retail and service
businesses, respectively. And the locations of high density residential development serve as a
transitional land use between commercial activities and lower density residential uses. The
2008 Lakeville Comprehensive Plan also establishes a commitment to a minimum density of 7.0
dwelling units per acre along the Cedar Avenue corridor as a Special Study Area outside of the
MUSA based on regional transportation planning for the Red Line Bus Rapid Transit. This
commitment will require the City to designate additional land within the Cedar Avenue corridor
for medium and high density residential uses as part of the 2018 Lakeville Comprehensive Plan
update.
The 2018 Comprehensive Plan update will allow for a community visioning process to identify
opportunities for possible changes to the land use plan responding to the Metropolitan
Council's Thrive MSP 2040 Regional Plan, including housing policy requirements, and identifying
locations for possible high density residential land uses (in addition to those currently guided
for such uses). This update of the Land Use Plan must also consider system plans such as
transportation and utility infrastructure necessary to support the planned land uses. City staff
is anticipating that the 2018 Comprehensive Plan update process would begin in 2017 and be
completed no later than the end of 2018 as required by State Statute. City staff recommends
that any discussion of wide-ranging changes to the Land Use Plan be deferred until the 2018
Comprehensive Plan update to ensure community engagement, planning based on the City's
overall land use goals, and system plan capabilities.
There are opportunities within the framework of the 2008 Comprehensive Plan to consider land
use changes where multiple family development proposals may be appropriate but not
currently guided by the Land Use Plan or zoned for such uses. These could include up to 12
scattered sites within the City identified by the EDC for potential high density residential uses.
Specific development proposals for these sites may be the basis for establishment of Planned
Unit Development (PUD) Districts allowing for multiple family uses based on existing
performance standards or modified performance standards intended to achieve a more
innovative land use. The use of a PUD District to respond to development proposals on any of
these sites would allow for an expedient approval process to address developer requests for
2016 projects and site sensitive performance standards for the specific location under review.
Zoning Districts. Multiple family residential land uses are allowed by the Zoning Ordinance
within the RH-1, RH-2 and 0-R Districts. As noted above, the City may also establish a PUD
District allowing for multiple family residential uses. The RH-1 and RH-2 Districts allow for the
same land uses, with the primary difference being building height limits. Principal buildings in
the RH-1 District are allowed to be up to three stories or 35 feet in height, whereas principal
buildings in the RH-2 District are allowed to be up to four stories or 45 feet in height. The use
of two high density residential districts for multiple family development is appropriate as a
2
means to define the location for varied intensities of development and City staff recommends
continuation of this strategy, such as using the RH-2 District to allow taller buildings (and thus
higher density) adjacent to major transportation corridors or commercial nodes.
Multiple family uses are allowed within the O -R District by conditional use permit subject to the
same performance standards as the RH-I District. The O -R District is designated in limited
areas on the Zoning Map with the purpose of providing for a desired transition from residential
uses to business activities and potential for some intermixing of residential and commercial
uses. Given that the O -R District is intended to be primarily oriented to commercial uses and
given the location of sites zoned O -R District are adjacent to major roadways and commercial
corridors, more intensive land uses may be anticipated.
The issue of allowing multiple family land uses within commercial zoning districts was raised as
part of the EDC's 2014-2016 Strategic Plan and has recently been requested by property owners
and developers of specific commercially zoned properties. The City amended the Zoning
Ordinance in 2013 to allow for senior housing with services as a conditional use within the C-1,
C-2, C-3, and C -CBD Districts. Given the potential site sensitivity and compatibility issues with
developing residential uses within commercial areas, any amendment of the Zoning Ordinance
to allow for multiple family dwellings within the commercial zoning districts would be
recommended to be as a conditional use. The City acts in a quasi-judicial role in reviewing
conditional use permit applications applying criteria and performance standards of the Zoning
Ordinance in consideration of a specific development and has more limited discretion as to
whether to approve or deny a project. For this reason, the City would need to specifically
define the conditions under which multiple family residential dwellings may develop within
commercial zoning districts. Alternatively, the City could consider establishing a new
commercial zoning district that allows for development of retail, service, and office uses mixed
with high density residential use, and subject to performance standards specific to that district,
which some surrounding cities have done. These provisions may also be considered for
multiple family uses within the C -CBD District for Downtown Lakeville. Establishment of a
zoning district both in terms of location and performance standards is a legislative act for which
the City has a greater degree of discretion in defining, but is similar to the conditional use
permit review process as a quasi-judicial or administrative action in reviewing specific
development proposals.
Multiple family development may also be allowed for by PUD Districts, such as in Sprit of
Brandtjen Farm or Avonlea. The City has broad discretion in establishment of a PUD District
acting in a legislative capacity to define the land uses allowed and the performance standards
those land uses are required to meet. This authority enables the City to ensure that the PUD
District and proposed land use will be compatible within the context of the site and supported
by adequate transportation and utility infrastructure. However, because the PUD District is
typically established in response to a proposal for development of a specific site, there can be a
concern about consistency from PUD District to PUD District. Furthermore, establishment of a
PUD District to allow a use otherwise not guided by the Comprehensive Plan or allowed under
the current conventional zoning district designation may challenge the expectations of
3
surrounding property owners as to the character of development that is to occur in the area.
Notwithstanding these issues however, a PUD District would be the preferred approach for
consideration of development of the scattered sites identified by the EDC for potential multiple
family development within commercial districts in advance of the 2018 Comprehensive Plan
update and subsequent Zoning Ordinance amendment to establish the necessary performance
standards for multiple family uses within commercial districts.
Performance Standards. Whereas the location for development is determined by the
Comprehensive Plan and Zoning Map, the character of a land use is defined by the performance
standards the City adopts as part of the Zoning Ordinance. Once established, compliance with
these performance standards is an administrative review function to verify compliance. For this
reason, performance standards are best established as technical requirements where no
interpretation is necessary and the requirement is applied consistently from property to
property. Performance standards also typically address the basic functionality of a
development, including the following:
Minimum Lot Area. The Zoning Ordinance requires multiple family development to
provide a minimum of 2,500 square feet of lot area per dwelling unit. This
performance standard applies regardless of the Zoning District in which the use is
located and also does not distinguish between efficiency, one, two, three or more
bedroom units within the building. The composition of the dwelling units within a
development will have a direct effect on the intensity of the land use. It would be
more responsive to the proposed land use of a site to evaluate density using a
graduated scale for minimum lot area based on the number of bedrooms within each
dwelling unit either as an amendment to the Zoning Ordinance or in evaluating a
proposed development utilizing a PUD District.
Some cities provide allowances for reductions in minimum lot area requirements for
multiple family developments based on a number of factors. Underground parking
within the principal building is more efficient by reducing the lot area needed and is a
desirable amenity, so a lot area reduction of 300 to 500 square feet per garage stall is
common. Some cities also provide for a reduction of lot area requirements based on
proximity to transit locations or transportation corridors to encourage higher
densities. This approach would require a Zoning Ordinance amendment in order to
establish a schedule of lot area reductions for various location and project elements to
be incorporated within all or some of the zoning districts allowing multiple family uses
or may be the basis for flexibility in the performance standards established as part of a
PUD District.
Building Height. Developers have indicated to City staff that building height is a
crucial element in the financial feasibility of multiple family developments in that it is
more cost effective to increase the size of a proposed building vertically than
horizontally due to the higher costs of expanding the building foundation. Multiple
family buildings within the RH-1 and O -R Districts are allowed to be up to three stories
a]
or 35 feet in height. Multiple family buildings within the RH-2 District are allowed to
be up to four stories or 45 feet in height. The Zoning Ordinance also provides for a
conditional use permit process whereby the height of a building within any zoning
district can be increased above the district limit by increasing the front and side yard
setbacks five feet for every additional story above the district limit. Surrounding cities
allow multiple family buildings up to five stories in height within specific zoning
districts, which is similar to the approach in Lakeville with the RH-2 District. The
existing conditional use permit for height increases above the district limit allows
developers flexibility to propose additional building height. Building heights greater
than allowed in the RH-1, RH-2 or O -R District could also be established by a PUD
District for a specific project allowing the City the greater oversight of a legislative
action to ensure that the additional building height of a specific project is appropriate
for the site and compatible with surrounding land uses. The current Zoning Ordinance
standards allow for appropriate building heights and flexibility either through a
conditional use permit or PUD District to accommodate proposals for increased
building heights where appropriate.
■ Off -Street Parking. The Zoning Ordinance requires 2.5 off-street parking stalls per
multiple family dwelling unit to accommodate both the residents as well as guest
parking. As with the existing minimum lot area requirement, this performance
standard does not account for variations in the number of bedrooms within each
dwelling unit, which may be expected to have a corresponding effect on parking
demand. City staff has discussed and found examples from other cities for
establishment a graduated scale of parking requirements for multiple family uses
based on the number of bedrooms per apartment, parking spaces for common areas,
and guest parking. Consideration could be given to the number of required parking
stalls for multiple family uses being based on bedrooms per unit using Institute of
Transportation Engineers parking demand studies to ensure provision of adequate
parking stalls based on the functional demands of the specific development.
There is no requirement in the Zoning Ordinance that one or more of the parking stalls
required for each dwelling unit be enclosed, which other cities require. Such a
requirement may be appropriate from a land use efficiency standpoint, as well as a
desirable amenity for multiple family housing in the City. An exemption from a
requirement to provide underground parking stalls could be included for projects
meeting regional affordability guidelines so as not to create an exclusion through
zoning. Alternatively, the underground parking stalls could be incentivized by a
reduction in minimum lot area per unit rather than being a requirement.
■ Exterior Materials. The Zoning Ordinance requires multiple family buildings to
provide minimum of 50 percent of each exterior wall with a brick, stone, or
stucco/EIFS finish. The requirement encourages use of high durability materials for
long-term maintenance and also to encourage an attractive exterior through high-
quality materials and a variation on materials for each wall. Since this requirement
6�
was established with the Zoning Ordinance update in 2000, new materials have
become available such as compressed cement or wood fiberboard siding that offer
high durability and attractive aesthetics. The City has modified exterior material
requirements for townhouse uses to incorporate these new types of materials and
may also be appropriate for multiple family uses.
CONCLUSION
The information outlined herein is provided for continued discussion with the City Council at a
work session on 11 April 2016. City staff is seeking direction from the City Council in order to
respond to developers considering multiple family projects in Lakeville. The establishment of a
PUD District using the performance standards of the RH-2 District as a basis would be the
preferred approach by City staff for consideration of multiple family projects on property not
currently zoned RH or O -R. The City Council may also direct City staff and the Planning
Commission to undertake further study of other options to address the demand for multiple
family development, including initiating amendments to the Zoning Ordinance.
C. Justin Miller, City Administrator
David Olson, Community and Economic Development Director
Roger Knutson, City Attorney
C
-•---•
---------•-•-
a
1•
1
F
�
c
N
1
i
ti
N
a
o
�
-
i
�
z
E
Z
-am-SONNAO11d
1
a
a
LL
n
-
J
1
0
I
1
1
LL
0i
In
C;
N
i
V
3 3nv-��vis�fn�
V
m
i
i
y_---_-_•_-_-_
,.�
•_•_-_--•_-_•r•_•_-_
- _ _•_-7-_-_•-•_•_•_----
I
3i
o 1
1
3ntlaHa39
F
m
lu
3AVaVa30--•_i
3r-
o
>`
u
x
ai
.w
r
F-
H
1
W- VE
�
=
N
N
1
.
1
►=
00,
1
� 1
N
yx
1
3/1v-bl
b�
N�
o j
e
N
to
�D
1
C o
4q
x
3qb i
N
1 x
_
J '18 3)1
e
u
i
L....... .
. .........
°��b�alanr
----•----------
-_-_-_-_._._. i
n
m
2
X
lmm�
--•- ---•-- rc °'
_ H U H rC
1 ti F v /o N-
_0 p F V i
F t a -
1 w z
e w o c w
1 w ~ a _a
-42180NN-1011d 1i i w a
o
LL C 00 p V
W W =0 V K
O a w m < S
1 ~Q, 0to
_ LU 0
?
LL LL. Z (.)
p z = t7 m
r N l7 V
TIM;
�J�00�1
N
3AV 21Ha39 2 3AV-21Va39 -- - • -1
1
1
1
1
1
1
.it Vl 1
m
N
oOdr_7bl ._._•-.----_._.......
N I
.........— lanr _...._._._._._._
I."
CITY OF LAKEVILLE
CITY COUNCIL WORK SESSION MINUTES
March 28, 2016
Mayor Little called the meeting to order at 6:00 p.m. in the City Hall Marion Conference Room.
Members Present: Mayor Little, Council Members LaBeau, Davis, and Anderson
Absent: Council Member Swecker
Staff present: Justin Miller, City Administrator; Allyn Kuennen, Assistant City Administrator,
Dave Olson, Community and Economic Development Director; Chris Petree, Public Works
Director; John Hennen, Parks and Recreation Director; Zach Johnson, City Engineer; Jerilyn
Erickson, Finance Director; Judi Hawkins, Deputy City Clerk
2. Citizen Comments: None
3. Discussion Items:
a. Transportation Corridors / Strategic Density Housing Options
Daryl Morey summarized the agenda item and stated that numerous private developers have
contacted staff in the past several months with inquiries about constructing multi -family
residential projects in Lakeville in 2016 and 2017. Projects are being proposed for attached
townhomes, market rate apartments, senior housing and workforce housing; however, there is
very little property with City utility services that is zoned or guided for multi -family residential
housing. An update of the City's Comprehensive Plan will begin in 2017 and could include
changes to land use and zoning which will take effect in 2018. The Economic Development
Commission's 2014-16 Strategic Plan also identified the development of high density housing as a
Strategic Priority particularly along the BRT corridors on Cedar Avenue and I-35. The EDC's
Strategic Plan initiatives include identifying up to 12 sites within the city to be rezoned for higher
density housing and possibly allowing higher density housing in commercial zoning districts by
Conditional Use Permit. Housing with services such as senior housing, memory care, etc. are
currently allowed in commercial zoning districts. Maxfield Research conducted a housing needs
assessment for Dakota County CDA and identified the need in Lakeville for up to 3,000 rental
units for all income levels by 2030. Properties that have been identified are predominately zoned
commercial.
Staff presented options for Council to consider for how potential multi -family housing sites along
the two main transit corridors could be developed, if Council desired. Properties could be
rezoned on a case to case basis to Planned Unit Development (PUD) while working with
City Council Work Session
March 28, 2016
Page -2 -
developers to identify some development standards; properties could be rezoned to either RM
(medium density) or RH (multi -family) and be subject to established standards for density,
building height, setbacks, etc.; or the zoning ordinance could be amended to allow multi -family
housing by CUP in commercial zoning districts.
Mayor Little asked staff which approach might be best if Council decided to proceed. Dave Olson
stated that mixed use in commercial areas is becoming common in metro communities. The
EDC would like to create a CUP category in the commercial zones, such as the downtown central
business district which has some areas that could be zoned for high density. Lakeville's current
units per acre and building height standards are low compared to other cities. Developers will
also want to discuss those allowances as part of possible ordinance amendments.
Gary Gustafson of Fortune Realty is interested in developing 35 acres which are currently zoned
commercial just north of the Target store on 185d' St. for townhomes and multi -family. Bruce
Rydeen agreed that some of the properties that are currently zoned commercial might be put to
better use with high density housing. Mr. Gustafson stated that Lakeville's fees are also
prohibitive to developers.
Council Member LaBeau commented that building height restrictions also create challenges for
developing higher density housing. Morey stated that a PUD would allow some flexibility in the
ordinance. Mayor Little asked if allowing higher density housing near the industrial areas had
been considered. Mr. Morey stated that residential and industrial uses do not mix well due to
heavy truck traffic and possible hazardous materials.
Council Member Anderson stated that infrastructure and performance standards, as well as
market demand also need to be considered for conditional use permits. Mr. Morey stated that if
properties are considered on a case by case basis, the PUD would be a more appropriate tool.
Davis believes a PUD on a case by case basis would be best but is concerned about possible added
cost for additional work that would be needed for approval. In addition, Davis would like to see
performance standards developed so that developers know what to expect when going into a
project. Mr. Morey stated that staff would spend more time reviewing each project individually.
Mayor Little suggested beginning with a PUD on a case by case basis as a start, then establish
standards later based on experience. Lakeville has a shortage of housing inventory and needs
more variety in stock. Council Member LaBeau stated that surrounding communities are
saturated with rental units. Council Member Anderson suggested these questions be discussed at
a future work session after staff has researched and drafted possible performance standards.
City Council Work Session
March 28, 2016
Page -3 -
Mayor Little prefers to resolve some issues at this meeting in order to provide further direction
for staff. After some discussion there was consensus among the Council to accelerate the process
by holding a special meeting on April 11, 2016 to discuss density, building height, parking ratios,
pros and cons and criteria for PUD vs. CUP, fees, and any other issues associated with developing
multi -family housing in Lakeville.
b. Vermillion Watershed Project
City Engineer Zach Johnson provided an overview of the proposed South Creek Restoration
Project. The water quality of South Creek and the Vermillion River is being impaired due to
failures of the banks of a storm water basin located southwest of the Holyoke Avenue/2101 Street
intersection. Staff is proposing a feasibility study to evaluate options to reduce erosion and
sedimentation and increase oxygen levels in order to improve water quality and wildlife habitat.
The feasibility study would also address what construction option would be most cost effective.
Wenck Associates has submitted a proposal for services to be completed in three phases. Staff
will present the results of the first phase to Council for further direction. The Vermillion River
Watershed Joint Powers Organization (VRWJPO) will fund up to $65,000 for a feasibility study
and preliminary design.
Council directed staff to proceed with the feasibility study for South Creek water improvements.
c. Water Meter Policy
Chris Petree stated that staff is proposing to establish more specific ordinance language and a
policy for dealing with various water meter issues, especially the meter change -out program. The
proposed policy details water meter installation, maintenance, reading and testing and outlines
responsibilities in order to establish consistent procedures.
Council directed staff to provide a final draft to Council for consideration at a regular meeting.
d. 2017 Holyoke Avenue Street Project Update
Operations and Maintenance Engineer Monica Heil provided a brief summary of the feedback
received from downtown Lakeville property and business owners regarding plans for the 2017
Holyoke Avenue Improvement Project. Staff received input from the DLBA at meetings in
August, October and January. The project is currently budgeted as a $1.1M mill and overlay
between Heritage Drive and County Road 70 in 2017 and includes some spot sidewalk
replacement. The DLBA was asked if there was interest in expanding the project to include
streetscape and sidewalk upgrades. Options and assessment estimates presented to the DLBA
included:
1) maintain the current project scope as budgeted ($51/front foot);
2) replace all the existing concrete sidewalks with plain concrete, with no trees ($90/front foot);