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03-14-11 CC WS Mtg MinCITY OF SHOREWOOD CITY COUNCIL WORK SESSION MONDAY, MARCH 14, 2011 MINUTES 1. CONVENE CITY COUNCIL WORK SESSION 5755 COUNTRY CLUB ROAD COUNCIL CHAMBERS 6:00 P.M. Mayor Liz6e called the meeting to order at 6:02 P.M. A. Roll Call Present. Mayor Liz6e; Councilmembers Hotvet, Woodruff and Zerby; Attorney Keane (arrived at 6:06 P.M.); Administrator Heck; Finance Director DeJong; Planning Director Nielsen; Director of Public Works Brown; and Engineer Landini Absent: Councilmember Siakel B. Review Agenda Hotvet moved, Woodruff seconded, approving the agenda as presented. Motion passed 4/0. 2. SMITHTOWN CROSSING Director Nielsen explained the Planning Commission began working on the Smithtown Crossing Redevelopment Study (the Study) in 2010. The Study area includes the commercial area around County Road 19 and Smithtown Road. It's broken into three locations; the northwest quadrant of the Smithtown Road and County Road 19 intersection, the southeast quadrant of that intersection, and the area north of County Road 19 just west of Shorewood Lane. The Study has focused primarily on the northwest quadrant, while noting some of the things the Commission talked about to date also apply to the southeast quadrant. The City's Comprehensive Plan states the City would prefer a unified, cohesive redevelopment of the northwest quadrant as opposed to parcels being developed individually. Nielsen reviewed a number of benefits that could be achieved from redeveloping the northwest quadrant with a unified, cohesive approach. ➢ It would be much more efficient to develop pending for the entire quadrant than on a lot by lot basis. Drainage is very sensitive in that area; both rate control and volume control. ➢ There could bejoint use parking. ➢ There would be some flexibility with setbacks, in particular in a planned unit development (PUD). ➢ There would be more efficiency in landscaping. Landscaping is a big element of the Study. Nielsen highlighted the three locations on a map. He noted the west boundary of the northwest quadrant is not well defined. He explained as the area progresses west along Smithtown Road there are single family residential properties. The Planning Commission wanted there to be some flexibility with that boundary should a developer want to buy some of those properties. The public safety facility and the City's Public Works garage located in the northeast quadrant are not included in the overall Study. There CITY OF SHOREWOOD WORK SESSION MEETING MINUTES March 14, 2011 Page 2 of 7 is a property about 1.5 acres in size with a single family house on it in that quadrant and there was discussion that the property could be developed into something other than single family residential. One of the issues associated with the southeast quadrant is that it technically abuts residential property; that's where the City Hall and Badger Park are located. The lots in that quadrant are shallow and it's difficult to meet some of the City's setback requirements. Nielsen stated Gideon Glen is included in the northwest quadrant portion of the Study even though its use and development have been determined already. Future redevelopment could potentially take advantage of some of the Gideon Glen views on the northerly edge. There is an issue of buffering Gideon Glen and the residential area to the north of it. There is a potential issue of land use transition on the west end of the quadrant. Both vehicular and pedestrian internal circulation is an issue. On the very corner of the quadrant there is a site that could have soil issues, although it has received a clean bill of health from the Minnesota Pollution Control Agency. Phasing for the entire redevelopment of this quadrant could be an issue. There's hope that a single developer would develop this area, but it could realistically be done in pieces as long as there is a unified, cohesive development plan. There is some concern about vehicular access to and from County Road 19 as well as to and from Smithtown Road. Nielsen displayed a concept drawing prepared by Planning Commissioner Hasek showing some of the things the Planning Commission would like see happen if the northwest quadrant is redeveloped. It reflects a unified and cohesive development, one large ponding area, access control along County Road 19 and Smithtown Road, and some type of area identification (this is consistent with the Country Road 19 Corridor Study). He also displayed a drawing showing what it could look like if the lots were developed independent of each other. There could potentially be a pond on each of the lots and the ponds would be very inefficient and ineffective. Developing the area on a piecemeal basis would be much less efficient because each lot would have to comply with the setback requirements, its own pending, and parking area. Nielsen explained the vision for the Smithtown Crossing redeveloped area was set forth in a vision statement. The intent of the vision statement is to paint a picture for developers of what the City is looking for. Some of the items are above and beyond the requirements of the City Code. For example, the City has minimal construction material requirements as well as minimal landscaping requirements. The Planning Commission suggested the City offer incentives to developers so that they would put in enhanced landscaping, use natural materials in the architecture and so forth. Nielsen stated in May 2010 the Planning Commission met with some of the northwest quadrant area property owners. The meeting was relatively well attended. A few owners of residential properties in the area also attended the meeting. The American Legion, which owns three parcels in the quadrant, was well represented. There seemed to be consensus among the property owners at the end of the meeting that a unified, cohesive development approach to redeveloping the area was best for all property owners. Nielsen then stated in June 2010 the Planning Commission met with a panel of senior housing developers. The panel was presented material that had been compiled about what the Commission was looking for and was asked to provide candid feedback on the material. The panel was also asked to provide their thoughts about the current market. The original vision statement indicated a desire for the area to be redeveloped retail and housing. The panel members did not think there would be a strong market for strictly retail. They indicated commercial services would be better than retail in that location. He noted the City does have a Commercial Service zoning district that has to do with trade contractors and light industrial type activities. That District is located almost primarily on the east end of County Road 19 abutting the City of Excelsior. CITY OF SHOREWOOD WORK SESSION MEETING MINUTES March 14, 2011 Page 3 of 7 Nielsen went on to state the panel members expressed they did not think vertical mixed use would work well; it isn't working well anywhere in Minnesota. He noted the City Ordinance would allow for a vertical mixed use development. He stated it's more likely the area could be redeveloped as horizontal mixed use. He noted there was consensus among the panel members that if the City would allow somewhat taller buildings than the current height restriction of three stories or 40 feet in height it would increase the likelihood of the quadrant being redeveloped. Nielsen explained that in August 2010 the Planning Commission toured several projects in the west metro. The focus of the tour was mixed use development, design, senior housing, and building heights. Nielsen described a development located in the Glen Lake area in the City of Minnetonka. He also showed pictures of that development. That development is a mixed use development. It's a five -level building with a gable roof that fits well into the site. The top level of the building is in the gable so it diminishes the effect of the height. There was substantial landscaping and street lighting around the area. He then displayed a picture of and described a mixed use development located in the City of Chanhassen. The Planning Commission was not overly enthusiastic about the character of the building. The landscaping around the area was significant. Nielsen stated the Planning Commission also went to look at two developments kitty corner from each other located in the City of Golden Valley. One development is called The Town Square and the other The Commons. He displayed pictures of the developments. He stated the Commission liked the idea of the public space in the developments. The Commission thought some type of public /common space in a redeveloped northwest quadrant could be a draw for people. He displayed a drawing of The Town Square development superimposed over the northwest quadrant, noting it fits in there quite well and leaves room for a residential development of some type. He noted The Town Square development includes a parking ramp and that is not expected in the City. He stated if there were to be a similar development project in the quadrant it would have on -grade parking. Nielsen noted that the pictures of the developments the Planning Commission looked at will not be included in the Study report. The Commission wants developers to come up with their own ideas. Nielsen stated the Planning Commission would like to see something like The Town Square development for the northwest quadrant. That development is a two -story structure with a relatively steep pitched roof that houses all of the mechanical equipment. "There is retail below and office space above. The office space has not done as well as one would have expected because office people don't want to have to smell odors from retail operations. Nielsen noted the Study report includes some copies of photographs which depict what the City is looking for. Nielsen stated if the City is willing to give incentives for developments with things such as angled rooftops, depth and shadow, and significant landscaping it will help entice developers to redevelop the area the way the Planning Commission recommends. He noted the previous council indicated it was willing to consider tax increment financing (TIF). He stated he thought that would be pretty essential to redeveloping the area with a unified, cohesive approach. TIF would be one way the City could contribute toward the redevelopment in order to try and make it happen the way the City would like. Nielsen explained the Planning Commission talked about potential amendments to the City's Zoning Code that include provisions tying flexibility and reward to the level of compliance with the City's vision for the area. One provision would be to allow taller buildings for the right project and under the right circumstances. For example, allowing a building to be as high as forty -five feet tall provided the CITY OF SHOREWOOD WORK SESSION MEETING MINUTES March 14, 2011 Page 4 of 7 architectural design and landscaping fit with the City's vision. Another provision would allow for higher densities than currently allowed in mixed use developments based on certain conditions. Nielsen then explained the Commission also discussed the possibility of the City acquiring land in the area when it becomes available on the market. Having the needed land available when the time comes to redevelop the area would be helpful. The Study report suggests the City acquire land. He noted there is a single family residential parcel located on the west edge of the area that is on the market. When that property turns over the house on the property will likely be torn down. He stated the City could buy that property, tear the house down and hold on to it until there is a redevelopment project. Mayor Liz6e asked if the American Legion has any interest in partnering with a developer on the redevelopment of the northwest quadrant. Director Nielsen responded that during the Planning Commission's meeting with the property owners Legion representatives expressed interest in partnering with someone. The Legion wants a new facility. He explained that one of the three parcels the Legion owns does not abut either of the other two parcels. He noted the Legion is a key land owner. Director Nelsen noted that a couple of private development groups are somewhat interested in the northwest quadrant. He stated that in the past the money hasn't worked out for developers even if TIF was factored in to the equation. Mayor Liz6e stated PUDs have been an effective tool in the City over many years. She asked if the City would have to have control over all of the property in the northwest quadrant in order to designate it as a PUD. Director Nielsen explained the PUD happens with the development. The City's Comprehensive Plan suggests the quadrant be redeveloped as a PUD, but it has not been zoned as a PUD yet in part because the west end boundary of the area is not known at this time. There are advantages to both the City and a developer to develop the area as a PUD. There is more flexibility with a PUD, especially internally. If the parcels were to be developed individually each property would have to have a minimum of a five -yard setback from the parking area on the property to the property line and each property would have to have its own ponding. If developed as a PUD there could be joint parking and one ponding area. Mayor Liz6e asked if it makes sense to amend the City's PUD to address mixed use now or is it better to make it site specific. Director Nielsen responded the Planning Commission will discuss a mixed use provision in the PUD section of the City's Ordinance in the upcoming months. Councihnember Zerby asked if the Planning Commission considered also looking further to the east on County Road 19. Director Nielsen stated the Planning Commission studied that area which is called Planning District 6 in 2007. The study was done in conjunction with the Shorewood Yacht Club property. During that study property owners expressed reservations about changing the zoning of their properties at that time. Nielsen explained Planning District 6 includes the following commercial sites: 1) the Shorewood Yacht Club (SYC) (zoned L -R, Lakeshore Recreational; 2) the Minnetonka Portable Dredging Company (zoned C -2, Commercial Service); 3) the South Lake Office Building (zoned R -C, Residential Commercial; 4) the Garden Patch Nursery (zoned C -2); and 5) the property between the South Lake Office Building and the Garden Patch Nursery (zoned C -2), which is the old Crepeau Dock location and is owned by the same individual who owns the Garden Patch Nursery. Nielsen then explained the C -2 District was created to specifically accommodate the existing uses of Crepeau Dock, the Garden Patch, and the Minnetonka Portable Dredging Company. During the study the Planning Commission proposed phasing out the C -2 District. Nielsen stated this Study did not go that far east. He noted the Planning Commission does intend on revisiting Planning District 6. CITY OF SHOREWOOD WORK SESSION MEETING MINUTES March 14, 2011 Page 5 of 7 Councilmember Zerby asked what the biggest issue has been for developers when it comes to redeveloping the northwest quadrant. He stated he heard CVS was considering the site. Director Nielsen explained CVS wanted a site with highway exposure. Nielsen stated Staff told CVS representatives that there is a lot of traffic on County Road 19, albeit not as much as on Highway 7. Zerby then asked if the Planning Commission considered using the northwest quadrant for recreational purposes. Director Nielsen responded the Commission didn't want to eliminate the commercial element of that quadrant, and it did not specifically consider a recreational use. Nielsen stated a common area and pedestrian circulation are a key part of what the Commission is looking for. Zerby stated there is a lack of temporary event space in the South Lake community for things such as the Excelsior Farmer's Market, flea markets and Christmas tree sales. The quadrant would be an excellent use for a town square concept. The area was talked about as part of the gateway project. Director Nielsen stated a common area could facilitate some of those types of events. Director Nielsen stated there has been a lot of discussion about a desire to have a connection between the LRT Trail to the north on Country Road 19 and the Smithtown Crossing area. He noted there may not be adequate parking to accommodate commercial, residential and event uses at the same time. He stated the land in the northwest quadrant is quite expensive for just soft recreational use. Councilmember Zerby stated there is a parking east across County Road 19 and also by City } Nielsen stated maybe the City could contribute property for a common area so a developer wouldn't have to pay for land he won't make any money off of. Zerby stated he could envision a nice fountain in a common area in the quadrant and that he thought that would help sustain property values. Councilmember Hotvet stated there is an opportunity to install some type of trail amenity in that area, noting trail amenities are lacking between the City of Excelsior and Carver Park. It could be like a natural wayside rest area. Director Nielsen stated the Planning Commission wants there to be a connection between Smithtown Crossing to the LRT Trail to the north. Councilmember Hotvet stated there has been discussion about expanding the shopping area located in the City of 'Ibnka Bay which is east across County Road 19 from the northwest quadrant. She asked if anyone knows what Tonka Bay's plans are. Director Nielsen responded he has not heard about any expansion plans. Director Nielsen related that a senior housing analyst stated three story buildings for senior housing are being built all over the place, but vertical mixed use with commercial below and senior housing above are not being constructed. He explained that some portion of a higher building could be set into the hill on the northwest quadrant and that would reduce the visual impact of a higher building. He stated prior to the Council and the Planning Commission meeting on this study he would like to prepare a drawing showing what a four -story building would look like on the site. Councilmember Woodruff complemented Director Nielsen on the great job he did of pulling all of the information for the Study together and thanked the Planning Commission for the hard work it has done on the Study. He commented that he has a copy of document summarizing the feelings of developers in the metropolitan area about doing things similar to this. He stated lie thought the City tries to be cooperative when working with developers, but some cities don't. CITY OF SHOREWOOD WORK SESSION MEETING MINUTES March 14, 2011 Page 6 of 7 Mayor Liz6e stated the northwest quadrant property ties into the community. She then stated she thought any development would want to capitalize on the Gideon Glen development. She went on to state she thought it would be great to tie pedestrian and trail usage together, and that to do it as part of a PUD would be a good idea. She suggested Council have continued discussion about how much control the City should have and whether or not it should invest in the property. Director Nielsen stated that the more the City invests the closer it will get to having the northwest quadrant redeveloped the way it would like. He expressed he did not think the area could be redeveloped in a unified, cohesive way if all the City does is make a few changes to the City Ordinance. If the City contributes something to the redevelopment effort it's more likely the vision could be realized. Asking a developer to leave three - fourths of an acre for common open space without giving anything in return won't get the City very far. But, if the City is willing to make a contribution a developer can focus on the part of the project that will make them money. Mayor Liz6e stated she's interested in gaining an understanding of how the City can take advantage of its economic development authority (EDA) and how TIF plays into that. She noted the Study report states "Assisting In the correction of problem soils is yet another,function of the EDA." She stated there are problem soils in the northwest quadrant. Attorney Keane asked how large the single family residential property is that is for sale on the west end of the quadrant and what the selling price is. Councilmember Zerby stated the property is located at 24620 Smithtown Road and the asking price is $154,000. Director Nielsen stated lie thought the property is more than an acre in size. Administrator Heck asked Council if its vision is in harmony with the Planning Commission's vision for the redevelopment of the northwest quadrant. Director Nielsen stated he has not heard anything from the Council that indicates the two visions are contrary. Director Nielsen noted that one of the American Legion's goals is visibility. It wants to be seen from County Road 19. He stated so far the Planning Commission's discussions have been about the common area being a centralized feature of the development. The common area location would be up to the developer. Mayor Liz6e suggested the City remain flexible in assigning the location in the quadrant. Nielsen stated the southeast quadrant may be better suited for public space. He noted the City does not own the very tip of the northwest quadrant corner; Tonka Bay does. Councilmember Zerby stated access to the southeast quadrant is not very good. Mayor Liz6e suggested Council discuss a date for a joint meeting with the Planning Commission and Park Commission. Director Nielsen noted he will be gone for 2.5 weeks in April. Nielsen suggested May 3` for the meeting. He then suggested that during the first hour sustainability be discussed and during the second hour the Smithtown Crossing Study be discussed. After that the Planning Commission could continue on with its regularly scheduled meeting. The current plan is to have the meeting on either May 2 nd or May 3'd CITY OF SHOREWOOD WORK SESSION MEETING MINUTES March 14, 2011 Page 7 of 7 3. ADJOURN Zerby moved, Woodruff seconded, Adjourning the City Council Work Session of March 14, 2011, at 6:58 P.M. Motion passed 4/0. RESPECTFULLY SUBMITTED Christine Freeman, Recorder Christine Liz�e, Mayor ♦ mmV vm.