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HomeMy WebLinkAboutItem 3a combined 2a-3eCity of Lakeville Community & Economic Development Memorandum To: Economic Development Commission From: David L. Olson, Community & Economic Development Director Copy: Justin Miller, City Administrator Kati Bachmayer, Economic Development Coordinator Daryl Morey, Planning Director Dan Licht, TPC Date: January 26, 2021 Subject: Proposed Comprehensive Plan Amendments for Multi-family Housing Projects The City has received requests from two separate developers to amend the City’s Comprehensive Plan for two properties west of I-35. The request is to change the current Commercial designation for both sites to High Density Residential. The first site is an 18.7 acre site located at the intersection of 162nd Street (CSAH 46) and Buckhill Rd. The second site is a 19.6 acre site on 210th Street (CSAH 70) west of Keokuk Ave and south of Emagine Theatre. Attached is an analysis of these requested changes that has been prepared by Dan Licht with The Planning Company who prepared the 2040 Comprehensive Plan for the City. Aerial maps of the properties in question are included along with a map of commercial properties that were identified in 2016 as potential multi-family sites. Included on this map are multi-family projects that have been approved since 2016. I have also included the one-page summary of the 2020-2023 Strategic Plan for Economic Development. Proposed developers and property owners have also submitted information on their proposed projects which has also been included. These developers and property owners will be attending the virtual Zoom EDC Meeting. It has been requested that the EDC review these requests since they involve changing the land use designation of two fairly large commercial properties to high density residential and the impacts of this on future commercial development in these areas of the City. The Planning Commission will be reviewing this information at work session on February 4th and the City Council will be discussing it at a work session on February 22nd. Action Requested: Provide the Planning Commission and City Council with any comments or recommendations the EDC may have regarding these requests. 3601 Thurston Avenue Anoka, MN 55303 763.231.5840 TPC@PlanningCo.com 1 MEMORANDUM TO: Daryl Morey, Planning Director David Olson, Community and Economic Development Director FROM: D. Daniel Licht, AICP DATE: 20 January 2021 RE: Lakeville – Comprehensive Plan; Multiple Family land uses TPC FILE: 135.01 BACKGROUND The City in 2016 initiated a study of multiple family housing within Lakeville based on recommendations from the Economic Development Commission in response to growing market demand and developer inquiries. The recommendations of the 2016 Multiple Family Housing Study were incorporated as part of the policies of the 2040 Comprehensive Plan and its implementation through the 2040 Land Use Plan as well as amendments to the Zoning Ordinance adopted in 2020. The City has received development sketch plans for two multiple family developments on sites not guided for either High Density Residential or Corridor Mixed Use land uses by the 2040 Comprehensive Plan. City staff is directing these concept plans to the Economic Development Commission, Planning Commission, and City Council for discussion at a work session level as to the appropriateness of the proposed developments from a Comprehensive Plan standpoint prior to submittal of formal development applications. City staff has requested our office provide additional information regarding land use considerations and factors relative to consideration of the proposed developments as part of the City’s overall Comprehensive Plan. Exhibits:  Aerial photos of proposed development sites  EDC 2016 Potential Multiple Family Residential Areas  2040 Land Use Plan maps 2 ANALYSIS Construction of multiple family dwellings expands housing options for resident life-cycle housing preferences and creates opportunity to expand the employment pool for retail, service, and industrial businesses in Lakeville. The City has approved seven multiple family developments, with a total of 1,140 dwelling units, since completion of the 2016 Multiple Family Housing Study. Multiple family dwellings are an allowed use within areas guided by the 2040 Comprehensive Plan for High Density Residential (HDR) and Corridor Mixed Use. The HDR land use designation allows for development of multiple family dwellings at nine to 18 dwelling units per acre. The 2040 Land Use Plan establishes the CMU designation to allow for development of multiple family dwellings with a base density allowance of 26 to 45 dwelling units per acre and commercial retail, service, and office uses in standalone or mixed-use buildings. The 2040 Comprehensive Plan estimates that 40 percent of the area guided for CMU uses will be developed with residential dwellings. Areas within the I-35 corridor have been guided for CMU uses to provide housing opportunities adjacent to planned nodes of commercial development that are also in proximity to existing or future transit facilities. The intent of the new CMU land use designation as part of the 2040 Comprehensive Plan is to recognize in part the “Amazon effect” of reduced demand for retail square footage due to on- line shopping services and the need to provide in-place market support for retail development that is constructed. Certain uses allowed in commercial zoning that are not as affected by “Amazon” include restaurants, entertainment, professional/medical offices, on-site personal services, travel services such as hotels, and automotive services. The effects of the COVID-19 Pandemic may result in long-term changes to the demand for office space, which is yet to be fully understood as the economy begins to emerge from the pandemic conditions. City staff estimates that there is 294 acres of land within the City zoned C-3 District and M-1 District that is undeveloped. The table below compares the percentage of land guided for multiple family dwellings within Lakeville to that designated within the cities with similar development character. High Density Residential Mixed Use Total Blaine 1.1% 0.9% 2.0% Burnsville 3.9% 3.0% 6.9% Eden Prairie <1% 2.0% < 3.0% Lakeville 0.9% 0.6% 1.5% Maple Grove 2.6% 18.5% 21.1% Plymouth 2.7% 0.4% 3.0% Woodbury 1.9% 1.5% 3.4% 3 The City Council and Planning Commission had toured mixed use developments in Eden Prairie Maple Grove, and St. Louis Park in advance of developing the Zoning Ordinance amendments necessary to implement the CMU land use designations of the 2040 Comprehensive Plan. Anecdotally, we have observed recent development of multiple family land uses in areas of these communities, as well as in other cities our office serves, that would likely be considered to be viable commercial locations adjacent to existing retail or office uses. The two sites for which the City has now received development sketch plans were identified in 2016 by the EDC as potential multiple family development areas. In preparing the 2040 Comprehensive Plan, the 18.7 acre site at I-35/CSAH 46 was maintained for a combination of future Medium Density Residential and Commercial uses. This site is adjacent to existing low density residential to the west in Lakeville and to the north in Burnsville and to commercial development on Buck Hill Road and has convenient access and visibility from CSAH 46 to support a commercial use. The 19.6 acre site at I-35/CSAH 70 was also maintained for future commercial use consistent with the land uses to the east abutting Keokuk Avenue. This parcel will have access via a street to the west that is to have less than full access to CSAH 70. The 18.5 acres west of this site was changed from Medium-to-High Density Residential to High Density Residential to allow opportunity for multiple family dwellings. If the 2040 Land Use Plan is amended to guide both of these sites for either HDR or CMU uses, the amount of land within Lakeville available for multiple family dwellings would increase 0.2 percent to 1.7 percent of the total area of the City. Another consideration with respect to the proposed development at I-35/CSAH 70 is the City’s goals for attainable housing adopted within the 2040 Comprehensive Plan. Provision of attainable housing within the City’s housing stock is necessary for social as well as economic development reasons. The 2040 Comprehensive Plan identified 9,748 dwelling units within Lakeville considered to be attainable by households below 80 percent of the Area Median Income. Metropolitan Council’s Thrive MSP 2040 Housing Policy allocates need for the City to provide opportunity for development of an additional 1,414 affordable housing units in Lakeville by 2030 to meet regional needs: City of Lakeville Thrive MSP 2040 Allocation of Regional Affordable Housing Needs 2021-2030 At or below 30 AMI 642 From 31 to 50 AMI 474 From 51 to 80 AMI 298 Total Dwelling Units 1,414 AMI = Area Median Income Source: Metropolitan Council Continental Properties is proposing that their development at I-35/CSAH 70, which is proximate to existing and planned commercial and industrial employment centers along the CSAH 70 corridor, would include 288 dwelling units with all of them to be offered at lease rates meeting 4 the requirements for attainability for households earning 80 percent of Area Median Income. The developer will be required to provide guarantees satisfactory to the City to ensure that these dwelling units will meet the Metropolitan Council criteria for affordable housing for a minimum of 10 years from the date of initial occupancy. The proposed 288 dwelling units would satisfy just over 20 percent of the City’s goal for development of attainable housing for the period between 2021 and 2030 without direct public subsidy by the City or Dakota County. Applications for amendment of the Comprehensive Plan (and Zoning Map) are legislative actions decided by the City Council with recommendations from the Planning Commission and Economic Development Commission for which there is broad discretion. The policies of the 2040 Comprehensive Plan specifically state that established land use designations and related zoning classifications are to be amended only when such action is consistent with the goals and policies of the 2040 Lakeville Comprehensive Plan and are found by the City to amend established land use designations and related zoning classifications that reflect Lakeville’s long- term interests. The 2040 Comprehensive Plan was only approved by the Metropolitan Council in 2019. CONCLUSION The information outlined herein is provided in consideration of the Comprehensive Plan issues raised by two multiple family housing sketch plans that have been received by the City for locations within the I-35 corridor for review by the Economic Development Commission, Planning Commission, and City Council. c. Justin Miller, City Administrator Andrea McDowell-Poehler, City Attorney C C HDR L/MDR LDR LDR MDR PAQP RD RD W PAQP RDR 162ND STREET (CSAH 46)DUPONT AVE18.7 AcresKENDALE DR I-35Legend 2040 Land Use Rural Density Residential (1.0 unit per 10 acres) Low Density Residential (0.1 to 3.0 units per acre) Low/Medium Density Residential (4.0 to 5.0 units per acre) Medium Density Residential (4.0 to 7.0 units per acre) Medium/High Density Residential (5.0 to 9.0 units per acre) High Density Residential (9.0 to 26.0 units per acre) Manufactured Housing (4.0 to 7.0 units per acre) Office/Residential Transition (9.0 to 26.0 units per acre) Corridor Mixed Use (26.0 to 45.0 units per acre) Commercial Office Park Warehouse/Light Industrial Airport Industrial Public and Quasi-Public Parks Restricted Development Water Cedar Corridor Agriculture Preserves Parcels KENWOOD TRL (CSAH 5)BUCK HILL RD KENYON AVE C RD LDR C C HDR HDR C MDR RDR RD RD W RDR M/HDR PAQP 215TH ST (CSAH 70) 205TH ST 207TH STKEYSTONE AVEKEOKUK AVEKESWICK LOOP Legend 2040 Land Use Rural Density Residential (1.0 unit per 10 acres) Low Density Residential (0.1 to 3.0 units per acre) Low/Medium Density Residential (4.0 to 5.0 units per acre) Medium Density Residential (4.0 to 7.0 units per acre) Medium/High Density Residential (5.0 to 9.0 units per acre) High Density Residential (9.0 to 26.0 units per acre) Manufactured Housing (4.0 to 7.0 units per acre) Office/Residential Transition (9.0 to 26.0 units per acre) Corridor Mixed Use (26.0 to 45.0 units per acre) Commercial Office Park Warehouse/Light Industrial Airport Industrial Public and Quasi-Public Parks Restricted Development Water Cedar Corridor Agriculture Preserves Parcels 19.6 Acres #I "Y "Y #I "Y "Y"Y "Y "Y #I LAKEVILLEPOINTEAPARTMENTS EDISON ATAVONLEA LAKESIDE FLAT S EDISON ATSPIRIT ARRISAPARTMENTS SPRINGS ATLAKEVILLE SBF 24THADDITION NORT HLAKELOFTSAPARTMENTS SUNDANCE AT LAKEVILLE AUTHENTIXLAKEVILLEAPARTMENTS K ENWOODTRL160TH ST W 210TH ST W CEDAR AVEFLAGSTAFF AVE W215TH ST W 210TH ST W LAKEVILLE BLVD K E N W O O D TRL 205TH ST W 162ND ST W KENRICKAVEPILOT KNOB RDCEDARAVED O D D B L V D 202ND ST W §¨¦35 §¨¦35 185TH S T W 175TH S T W CEDAR AVE170TH ST W HIGHVIEW AVEDODD BLVD190TH ST W HOLYOKE AVECrystal Lake Kingsley Lake Lee Lake Orchard Lake Valley Lake EastLakeGoos e Lake Lake Marion Previous Development Recent Development Proposed Development Proposed Zoning Change Date: 1/22/2021P:\Projects\2021\Community Development\Affordable Senior & Market Rate Housing.m xd City of Lake vill e Multi-Family Housing 1 0 10.5 Mile s . 2020 !H "J #I Market-Rate Housing Workforce Housing Affordable Housing 2 STRATEGIC PLAN SUMMARY 2020–2023 City of Lakeville EDC Lakeville Economic Development Commission Strategic Plan Summary 2020-2023 STRATEGIC PRIORITY DESIRED OUTCOME KEY OUTCOME INDICATOR (KOI) TARGET STRATEGIC INITIATIVES Business Retention, Expansion and Diversification Limit loss of existing business -Lakeville business inventory - Building permits No net loss in businesses January 2020-December 2023 a) Create business retention program w/ Chamber/CVB b) Establish a Lakeville business expansion program c) Develop a business cluster strategy & market node analyses Lakeville is the first choice for expansion - Expansion and relocation lists 90% of current businesses expand in Lakeville rather than relocate 2020-2023 Diverse industry base - Expansion and relocation reports by industry cluster Increase of at least one business in each industry cluster annually Maximize and Market Our Competitive Edge Be the community of choice - Competitive data on development decisions (win %) =/> ___ % wins each year of qualified leads on 3 high priority nodes/clusters a) Develop & enhance data analytics capacity and capabilities b) Refresh business marketing & branding strategy c) Establish a benchmark comparison system Enhanced recognition of brand - Contacts/ inquiries that result in action -Click /conversion rate =/>__% can articulate brand elements/qualities Infrastructure that leverages economic development - Infrastructure projects programmed in CIP EDC pr iority infrastructure projects are programmed in 2020-23 Housing to Support Economic Goals Adequate housing to support job base -__% jobs/resident - workforce housing units Reduce workforce housing gap identified in Dakota County CDA Housing Needs Assessment by _% by 2023 a) Coordinate economic development efforts related to CMU process b) Articulate objectives for workforce housing c) Facilitate housing barrier removal Housing that stimulates commercial development -Housing units in target areas -Commercial district comparisons _#_ units developed in targeted commercial areas by 2023 Policy guidance in place to achieve housing goals -policy/development alignment Corridor Mixed Use (CMU) designation adopted by fall 2020 Workforce Availability and Utilization Existing jobs match skills available -Import/export -Migration __% of jobs performed by Lakeville residents by ___ a) Collaborate with Lakeville Works initiatives b) Review City programs and policies for consistency with workforce housing requirements c) Align efforts with higher education providers Job availability matches demand -Job openings -Time to fill =/< ___% job vacancy rate in city, reported annually Business Retention, Expansion and Diversification Maximize and Market Our Competitive Edge Housing to Support Economic Goals Workforce Availability and Utilization Strategic Priority Desired Outcome Key OutcomeIndicator Target StrategicInitiatives 162nd St/Buck Hill Road Site Property Information January 13, 2021 0 450 900225 ft 0 130 26065 m 1:4,800 Disclaimer: Map and parcel data are believed to be accurate, but accuracy is not guaranteed. This is not a legal document and should not be substituted for a title search,appraisal, survey, or for zoning verification. OFFICE BLDG 210thSt (CSAH 70) Property Property Information January 13, 2021 0 450 900225 ft 0 130 26065 m 1:4,800 Disclaimer: Map and parcel data are believed to be accurate, but accuracy is not guaranteed. This is not a legal document and should not be substituted for a title search,appraisal, survey, or for zoning verification.