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HomeMy WebLinkAbout04-11-16 WSCITY OF LAKEVILLE CITY COUNCIL WORK SESSION MINUTES April 11, 2016 Mayor Little called the meeting to order at 7:00 p.m. in the City Hall Marion Conference Room. Members Present: Mayor Little, Council Members Anderson, Davis, LaBeau and Swecker Staff present: Justin Miller, City Administrator; Dave Olson, Community and Economic Development Director; Daryl Morey, Planning Director; Judi Hawkins, Deputy City Clerk 2. Citizen Comments: None 3. Discussion Item: a. Transportation Corridors/Strategic High Density Housing Options Daryl Morey provided a brief summary of discussions that had taken place at the March 28, 2016 City Council Work Session. In response to inquiries from the development community staff brought the topic of higher density housing to the City Council to determine their willingness to look at other options to address the demand. Staff believes the following four options exist: • Rezoning specific properties to PUD on a case by case basis. • Rezoning properties into either RHI or RH2, following current zoning performance standards. • Amending the Zoning Ordinance to allow multi -family housing by Conditional Use Permit (CUP) in the commercial zoning districts. This option reflects the recommendation of the EDC Strategic Plan to address the need for additional workforce housing. • Continue to use current zoning standards with no changes. Council expressed a willingness to consider additional options, particularly rezoning to PUD on a case by case basis. Planning consultant Dan Licht provided further information in a memo dated April 8, 2016. The City's current 2008 Comprehensive Plan designates certain areas for higher density, mainly along major transportation corridors. The Comp Plan is scheduled to be updated in 2018 but the process will begin in 2017 with public input. Zoning districts that allow multi- family housing with density higher than townhomes are RHI, RH2 and OR (office -residential) by CUP. Allowing higher density by rezoning to PUD has previously been utilized in Spirit of Brandtjen Farm and Mattamy's Avonlea PUD located near the park and ride on Cedar Avenue and 179th Street. Mr. Licht's memo did not suggest an ordinance change but rather addressing requirements as part of a PUD process. Standards to consider could include building height and parking requirements. Staff recommends Council consider looking at projects on a case by case basis by establishing a PUD district and basing performance standards on the RHI or RH2 districts. At Council's direction staff will review this with the Planning Commission in a work session. Dave Olson stated that the EDC's 2014-2016 Strategic Plan for Economic Development identified high density housing as a strategic priority. In addition, the Planning Commission has indicated a willingness to consider options to address this growing housing demand. City Council Work Session April 11, 2016 Page -2 - Mayor Little clarified that building height and parking requirements would be determined on a case by case basis only if the proposal did not meet current ordinance standards. Swecker asked for examples of high density use besides Spirit of Brandtjen Farm and Avonlea. Staff referred to the market rate apartments on 35W and 185th Street and several senior housing projects in the downtown area which were developed as part of a CUP district. Bob Erickson distributed copies of the 2008 Comprehensive Land Use Plan to Council Members and others in attendance. Mr. Erickson stated that he has participated in three public forums regarding the issue. During the visioning process Lakeville residents expressed concerns about high density housing. The limited number of units in the community was by design. The CDA Maxfield Study recommends 3,000 units by 2030, which could be low based on available desirable acreage. Residents expect high standards in multi -family housing. Erickson believes it is time to consider high density housing but is concerned about using CUPs on commercially zoned property. In addition to the EDC's list of 12 properties he believes several other properties in close proximity to transit such as Cedar/Dodd intersection, or by the park and ride on 35W and CSAH 50 could be rezoned as part of the Comp Plan update. He suggested updating the high and medium-high density portion of the Comp Plan out of sequence to provide the community an opportunity to comment. He believes CUPs on commercial property would result in inconsistent standards, values and rents; good projects with good management will result in a safe and secure Lakeville. The multi -family housing discussion should include market rate and subsidized units as well as high density scattered site housing. Anderson asked what it would mean to the Comp Plan update if the high density housing portion was taken out of sequence, as suggested by Mr. Erickson. Mr. Miller stated that it would take time to gather community input, hold public meetings at the Planning Commission and update the Zoning Code. Mr. Morey stated that the process of updating the Comprehensive Plan needs to be done properly and other elements also need to be taken into account. Jim McCarty, 17477 Goodland Path, is concerned with the process and concurs with Mr. Erickson. He believes that input from eight developers is being given more consideration than that of the 60,000 residents who have not been made aware of potential changes or development. He would not be opposed to a CDA project in the Cedar/Dodd area. Paul Johnson, a St. Paul resident, is co-owner along with the State Bank of Faribault of the 15.5 acres at the Cedar and Dodd intersection. A recent evaluation of their property by Maxfield Research concluded that the highest and best use of the property is for multi -family housing because 1) there is a high demand and a limited supply of that type of housing in Lakeville; and 2) their property is qualified to meet the need due to be proximity of private and public transportation which would provide many opportunities for residents. Gary Gustafson, Fortune Realty, has a listing for 35 acres of land north of Target at 185th Street. This is a triangular shaped parcel bordered by railroad tracks and I35W. The property was rezoned from Office to Commercial in 2008 but has been difficult to develop due to wetland and topography; they believe multi -family housing is the best use. They have received a letter of intent from a developer who wishes to build 100 townhomes and high density apartments. City Council Work Session April 11, 2016 Page -3 - Tom Gump, representing a group of developers from out of state, agrees that the time is right for development of some kind of multi -family product. Their group is looking at sites where three- story products would be appropriate. John Carlander, president of the State Bank of Faribault, believes the apartment concept being proposed by Mr. Johnson is a good product and would be an asset to the community. Mr. McCarty believes that homes should be built on the City's single family lots first. Little stated that Lakeville is the number one community in the state for single-family home building. Council Member Davis believes that altering the Comp Plan process would create additional work for Council and staff. There are unique sites where opportunities exist for high density residential and after more consideration believes that a PUD on a case by case basis is the best option. As sites are developed performance standards can be adjusted if appropriate. Council Member Anderson expressed his appreciation of the input from those in attendance. He believes in the values of the Comp Plan but also the need to respond to a changing world. Using the PUD approach and looking at situations case by case based on current standards, would provide the opportunity for flexibility. He supports staff's recommendation. Council Member Swecker agrees with Davis and Anderson and added that the 2030 Land Use Plan designates some areas for higher density and life -cycle housing. She believes that using the PUD method would be an appropriate way to set performance standards. She supports higher density in commercial areas and sees the need to keep up with the market. Mayor Little stressed the importance of choosing words with positive implications. "Multi- family" can mean apartments, condos, townhomes, and senior housing. More variety in housing options will make it possible for people who cannot afford or don't choose to live in expensive homes to be members of the community. This could mean young families who wish to live here or seniors who want to live independently. The Mayor also supports staff's recommendation. Council Member LaBeau also believes that young families as well as those who want a turn -key living situation need to be given the opportunity to live in the community. Building height needs to be determined by the topography and how it would impact the surrounding area. Products need to be of a good quality in order to maintain the community's value. Council Member Swecker stated that transition area between commercial properties and varying housing densities is also very important. Mr. Erickson added that using the CUP process will require modification of the Comprehensive Plan. Current high-density zoned properties will need to be added to the list of 12 properties and will exceed the community's expectations and Comp Plan. Staff will be setting standards on the properties as they are considered. He asked for clarification on staff's recommendation to defer discussions regarding changes to the Land Use Plan until the 2018 Comp Plan update to insure community engagement. He stated that ISD 194 is basing a long-range facility plan on the Comp Plan, which could change with additional high density housing. City Council Work Session April 11, 2016 Page -4 - Mr. Morey stated that staff's recommendation is that no City-wide changes be made to the Comp Plan until the update process has begun. Mr. Licht's memo recommends limiting PUDs as discussed to the 12 sites recommended or proposed by the EDC based on demand. Mr. Miller added that with the PUD process since there are no specific standards set in the ordinance, the Council would have more discretion and flexibility on what to allow in each proposed project. Dave Olson pointed out that the goal of the EDC was to identify 12 scattered sites for multi- family housing development; however, sites were not specifically recommended by the EDC. 4. Adjourn The meeting adjourned at 8:05 p.m. Respectfully submitted, Ju awkins, Deputy City Clerk Matt Little, Mayo