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100207 pl mn CITY OF SHOREWOOD COUNCIL CHAMBERS PLANNING COMMISSION MEETING 5755 COUNTRY CLUB ROAD TUESDAY, 2 OCTOBER 2007 7:00 P.M. MINUTES CALL TO ORDER Chair Schmitt called the meeting to order at 7:00 P.M. ROLL CALL Present: Chair Schmitt; Commissioners Gagne, Geng, Hutchins, Meyer, and Ruoff; Planning Director Nielsen; and Council Liaison Wellens Absent: Commissioner Gniffke APPROVAL OF MINUTES 4 September 2007 ? Hutchins moved, Gagne seconded, Approving the Planning Commission Meeting Minutes of 4 September 2007 as presented. Motion passed 6/0. 1. 7:00 P.M. PUBLIC HEARING - L-R ZONING DISTRICT TEXT AMENDMENT AND C.U.P AMENDMENT Applicant: Shorewood Yacht Club Location: 600 West Lake Street Chair Schmitt opened the Public Hearing at 7:01 P.M., noting the procedures utilized in a Public Hearing. He explained items recommended for approval that evening would be placed on an October 22, 2007, Regular City Council Meeting Agenda for further review and consideration. Director Nielsen stated Mike Mahoney, representing the Shorewood Yacht Club (SYC), 600 West Lake Street, had applied for an amendment to the text of the L-R, Lakeshore Recreational District and an amendment to the conditional use permit that currently governed the activities on the property. The SYC’s intent was to have current regulations changed, relaxing the restrictions that limited the storage and water-harboring of boats to sailboats only. The SYC asked to have up to 50 percent of its currently allowed 117 boat slips available for powerboats. Nielsen noted the previous owners of the SYC had requested the entire facility be allowed to be used for powerboats; that request was denied. He commented SYC property had previously be zoned single family residential; the previous owners had requested the property be rezoned to L-R and that request was granted. Nielsen then stated there was a substantial amount of background material relative to the SYC property. Because members of the current Planning Commission and City Council had not involved with the original zoning and conditional use permit for the property, Staff had provided them with the following materials: ?? Planning Staff Report, dated 27 September 2000 CITY OF SHOREWOOD PLANNING COMMISSION MEETING 2 October 2007 Page 2 of 17 ?? Excerpt of Planning Commission Minutes, dated 3 October 2000 ?? Resolution No. 00-111 (granting a C.U.P. and variance for a yacht club to Minnetonka Moorings, Inc.) ?? LMCD Quiet Waters Policy Statement Nielsen noted the City had received a great deal of correspondence relative to the application, both in support of it and against it. The Planning Commission had been provided copies of all correspondence other than that which was received late today. Nielsen also stated the applicant cited a survey commissioned by the SYC that documented the decline of the sailing market. The leader of the survey study group had been asked to elaborate on the findings of the survey at this public hearing. Nielsen explained the L-R zoning district was set forth in Section 1201.24 of the City’s Zoning Code. He stated Staff had provided the Planning Commissioners and Councilmember a copy of the provision that would need to be changed in order to accommodate the applicant’s request. The change would be a text amendment to the Code. The applicant’s request would involve changing several provisions of the C.U.P. governing the SYC property, most notably conclusions found on page 3 of Resolution No. 00-111. With regard to planning issues, Nielsen stated representatives of the SYC had made it known for several months that operating strictly as a sailing facility was not working out financially. In order to sustain the facility, they found it necessary to expand the SYC’s market to some percentage of powerboat slip rental. They make a case that there was a substantial market within Shorewood itself for people that desired access to the lake. Nielsen stated based on the history of the property, it was anticipated there would undoubtedly be numerous questions relative to the proposed changes. He then reviewed questions Staff anticipated, from a planning perspective, as well as some potential solutions. Current Property Status. In reviewing the files for the subject property, there was one ?? item that was not completed from the original approval. The property currently consisted of three separate parcels. The legal combination of these parcels should be a relatively simple house-keeping measure regardless of the outcome of this request Preferential Treatment for Shorewood Residents. The L-R district already contained a ?? provision stating the applicant would attempt to rent boat slips to Shorewood residents first, before opening it up to the general public. The applicant also proposed to offer Shorewood residents a 15 percent discount on slip rentals. Those were difficult provisions to monitor and enforce. Ordinarily the City would not incorporate such provisions in a conditional use permit; the City Attorney advised, however, that since it has been offered by the property owner, including it as a condition of approval would not pose a problem. Number of Power Boats. Presumably, the applicant had calculated what the SYC required ?? to sustain itself. Fifty-eight powerboats (50 percent) may be excessive. If the City were to consider 50%, it should also consider if a commercial marina were appropriate in the L-R district. Staff recommended that the property remain predominantly a sailing yacht club and maintain that character. Something closer to 25 percent powerboats would be more appropriate; or at most the powerboats could be limited to the fourth pier (35 slips). CITY OF SHOREWOOD PLANNING COMMISSION MEETING 2 October 2007 Page 3 of 17 Size of Boats. The applicant should indicate if there was any intent to limit the size of ?? boats docked at the property. The basis for this concern was the wake created by some of the very large boats that use Lake Minnetonka; wave action and shoreline erosion had been a recurring concern with respect to powerboats in this relatively shallow part of Gideon’s Bay. It was possible that the current dock configuration already limited the size of boats. The applicant should address this concern. Quiet Waters. With respect to wake and potential shoreline erosion, it seemed reasonable ?? that restrictions could be imposed limiting the speed of all boats entering and exiting the facility. According to Greg Nybeck, the Director of the Lake Minnetonka conservation District (LMCD), a quiet waters designation existed 150 feet out from all shorelines and from structures such as docks. It was also possible for the City to request an expansion of the quiet waters designation from the LMCD. A relatively easily defined and logical area was described by drawing a line from the shoreline north of the Timber Lane cul-de-sac to Duck Island to Frog Island to the peninsula at Lafayette Avenue. The City would have to petition the LMCD Board for an amendment to its code, designating the area in question. The LMCD would amend its code, based on its criteria found in its Quiet Waters Policy Statement; that would be a time-consuming process. If the LMCD were to approve the amendment, the Hennepin County Water Patrol would enforce the speed restrictions, as they do elsewhere on the lake. Neighborhood Concerns. Correspondence from residents regarding the nature of power ?? boaters versus sailors (e.g. hours, noise, etc.) may already be addressed within the provisions of the current C.U.P. For example, hours of operation were set forth and dock quiet hours were established between 10:00 P.M. and 6:00 A.M. Residents were advised to call the South Lake Minnetonka Police Department (SLMPD) relative to violations of those rules; the SLMPD would report those calls to the City. Nielsen stated if the City was willing to consider amending both the City’s Zoning Code and the SYC C.U.P. but had reservations over some of the issues raised by Staff and by residents, there was a way to approve something on a trial basis. Section 1201.04 Subd. 4. of the Code provided for an “interim conditional use permit”. That zoning tool would allow the City to approve a land use, or in this case a modification of use, for a specified period of time. The City could approve some level of powerboat use for a period of time (e.g. three years), during which time activity and complaints could be monitored, pending a more permanent resolution. That approach would require little or no investment by the property owner and it would allow the City to determine whether the change would be acceptable or not, or whether additional controls might be in order. Nielsen then stated if the Planning Commission believed the interim conditional use permit approach had merit, the Commission should be direct Staff to draft such a permit based on parameters the Commission set forth. Nielsen explained that amendments to the City’s Zoning Code and C.U.P.s were subject to the provisions set forth in Section 1201.04 Subd. 1.d. of the Code. Those criteria should guide City officials in determining the acceptability of the proposed changes. With respect to the City’s Comprehensive Plan, he encouraged the Planning Commission and Council to review the policies found in the Land Use Chapter of the Plan. CITY OF SHOREWOOD PLANNING COMMISSION MEETING 2 October 2007 Page 4 of 17 Mike Maloney, 231 Third Street and co-owner of the Shorewood Yacht Club, stated he co-owned the SYC with Gabriel Jabbour. Mr. Maloney then stated he grew up on Lake Minnetonka and sailed on the Lake his entire life. He loved running the SYC and would like to continue to do so until he retired. He commented that Mr. Jabbour owned other businesses and marinas on the Lake, he had previously been the mayor of Orono, and he was a strong proponent of public access to the Lake (for which he had received an award from the Division of Trails and Waterways, Department of Natural Resources). Based on Mr. Jabbour’s track record, Mr. Maloney was confident that Mr. Jabbour would not be in support of their request if he thought it would be damaging to the area. Mr. Maloney explained they had bought the SYC two years ago with the intention of running it as a sailboat marina. It was his preference to keep it as a sailboat marina, provided that would be economically viable. Currently the SYC had 52 paying customers for slip rentals out of 117 available slips. They were very serious about maintaining the property for a primarily sailboat marina; but to remain economically viable it was necessary they rent out slips for powerboat use. Mr. Maloney stated they had created strategic partnerships with leaders in the sailing community and other areas. They had brought Jim Johnson, owner of Seven Seas, into the lower level of the store to run the ship chandlery. Mr. Johnson also did a great deal of the rigging work and was the only person in the area that did splicing of lines. Mr. Johnson also lived on the property as the property’s caretaker. They also forged a partnership with Northern Breezes Sailing School, the largest sailing school in the area; Northern Breezes had trained hundreds of new sailors at the SYC facility. Mr. Maloney commented that the SYC had done a substantial amount of marketing (both print and direct) developed a new web site, had a participated in at the 2007 Boat Show and planned to do the same in 2008, and had invested hundreds of thousands of dollars in improvements to the facility. Mr. Maloney explained the SYC had always been a commercial marina for sailboats. There was also a strong social club which operated out of the SYC that managed the races and social events; the social club had a separate Board. The SYC housed all cruising sailboats on the Lake Minnetonka. It also repaired boats and buoys. Sailors World Marina used to cater primarily to sailboats; most recent observations indicated that only 15 of its slips were for sailboat use and the rest were for powerboat use. The Minnetonka Yacht Club and the Wayzata Yacht Club were both yacht clubs where the members were owners of the facilities; they were non-profit organizations and they did not opt for marina services. The Wayzata Yacht Club maintained a 16 race minimum to maintain a mooring priority. The Minnetonka Yacht Club rented out slips for powerboat use to help subsidize it. With regard to boating trends, Mr. Maloney explained currently there were over 12,000 powerboats on Lake Minnetonka and approximately 655 sailboats. The 2004 Lake Minnetonka Conservation District (LMCD) shoreline boat count indicated there were 1,648 sailboats on the Lake. An article on boating tends in the State published in the Star Tribune in August 2007 stated that boating in general had increased 30 percent in the last 20 years, but sailing had decreased by 38 percent. Excelsior had twelve moorings for sailboats in front of its Commons area that it couldn’t completely rent out for the last few years event though the cost would be less than at a commercial marina; therefore, in July 2007 the City decided to allow powerboats to moor there. He commented that the LMCD did not distinguish between sailboat and powerboat slips; they were both referred to as boat storage units. Mr. Maloney explained that a 1992 Lake Access Report between the DNR and the LMCD indicated that 30 percent of the boats on the Lake were in commercial marinas; of that 30 percent, on the busiest holidays during boating season only 25 percent of the boats docked at the marinas were used. Also, 72 percent of the boats docked at commercial marinas belonged to residents of cities in the LMCD. CITY OF SHOREWOOD PLANNING COMMISSION MEETING 2 October 2007 Page 5 of 17 With regard to noise, Mr. Maloney stated each sailboat within the SYC marina had a motor on it. One- third of the motors were small diesel inboard motors that were very quite. The other two-thirds were small auxiliary outboard motors that ran at 80 – 90 percent of their power to move a 3,000 – 5,000 pound boat out of the marina. When running at that power those small outboard motors were significantly louder than a modern V8 stern drive boat operating a minimum wake. With regard to wakes, Mr. Maloney explained that a quiet waters designation existed 150 feet out from all shorelines and from structures such as docks on the Lake. If the powerboats were to operate out of pier 4 and maybe pier 3, it would be difficult to operate outside of that 150-foot minimum wake restriction. If the LMCD chose to classify the area as a “quiet water” area, they would have not issue although they did not see a need for it. With regard to the types of boaters, there was not difference. Management of the boaters was key and the responsibility of the SYC. He stated the SYC was a commercial marina – he was on-site seven days a week and it had an on-site caretaker. The membership contract listed specific rules that must be followed, and if they were not the membership would be terminated. Members were also provided a hand-book prepared by the social club which documented the policies and regulations. With regard to traffic, there should not be any increase in traffic as there would not be an increase in the number of slips. The obvious traffic pattern for boats at pier 4 would be to use the long channel located on the bay. Mr. Maloney stated the business model that worked for the SYC marina previously did not work today. Their request was for no more than 50 percent powerboats that would be concentrated on or around pier 4, the newest pier. The social club’s Board indicated it would incorporate power boaters into its membership. From his vantage point, if powerboats were allowed nothing would change from a land use perspective – the property was already classified as an appropriate place for a commercial marina, and there would be no change to the number of slips. He thought it would a great service to the area residents if the City approved this request. The L-R District was created to serve the lakeshore recreational needs of the City; today there were two Shorewood residents that rented slips at the SYC marina. Mr. Maloney explained the SYC commissioned a survey by members of the marketing fraternity at the University of Minnesota Carlson School of Management which documented the decline of the sailing market. Gabriel Jabbour, 985 Tonkawa Road and co-owner of the Shorewood Yacht Club, stated the non-profit Minnetonka Yacht Club (which was 125 years old in 2007) subsidized its income through the rental of slips for powerboat use. The SYC was no different other than it was for profit. When he and Mr. Maloney came before the City when they were considering purchasing the yacht club, they told the City they were a for-profit organization and their intent was to make a “go of it” as a sailing club. In the last 20 years there had been no complaints against the SYC property. Harmony and quiet waters prevailed on most of the 125 miles of shoreline on the Lake. The SYC’s membership contract was quite specific, and the SYC’s insurance agent was surprised that members were willing to sign it. Part of the lake area in close proximity to the SYC marina was almost not navigable and it was a wonderful wildlife habitat; therefore, he did not understand people’s concern about renting slips for powerboat use. Mr. Jabbour noted that survey conducted by the students at the Carlson School of Business Management was much more extensive than what would be highlighted at this time. CITY OF SHOREWOOD PLANNING COMMISSION MEETING 2 October 2007 Page 6 of 17 Michele Ferber, a member of the National Professional Fraternity for Marketing, Sales Management, and Selling at the University of Minnesota Carlson School of Management and the leader of the survey study group, commented that students received projects from companies or individuals outside of the School and the students acted as consultants on the projects. She then highlighted some of the findings of the survey with regard to the decline of sailboat use in the area. Received 394 responses to the 2100 sent out; used 392 of them ?? Approximately 31%of the respondents were older than 55, and another 38% were 40 – 55 ?? years old Approximately 50%of the respondents were male ?? Approximately 45% of the respondents had incomes between $100,001 – $200,000, 23% ?? were between $51,001 – $100,000, and approximately 19% were between $200,001 – $500,000 Approximately 48% of the respondents had no children in the household, and ?? approximately 36% and 1 – 2 children Approximately 54% of the respondents had lived at their current residence more than 10 ?? years, and another 24% lived at theirs 6 – 10 years Regarding the primary reason respondents moved to Shorewood: to live near the lake ?? approximately 23%; to be close to parks approximately 12%; to be close to trails approximately 12%; to live close to work approximately 11%; and for the good school system approximately 10% Approximately 92% of the respondents were familiar with the local parks and recreation ?? system The following responses were based on a ranking scale of 7 being very likely and 1 being ?? very unlikely ?? If a marina in the community offered priority to residents how likely would you dock there – approximately 32% ranked this 6 or higher, and the average ranking was 4.3. Of those: - Approximately 49% were 40 – 55 years old, approximately 22% were 25 – 39 years old, and approximately 18% were 55 or older - Approximately 58% were females - Approximately 41% had incomes between $101,000 – $200,000, and another 35% were between $200,001 – $500,000 - Approximately 52% currently did not own a boat ?? If a marina in the community offered a discount to residents how likely would you dock there – approximately 51% ranked this 6 or higher, and the average ranking was 5.2. Of those: - Approximately 40% were 40 – 55 years old, approximately 23% were 25 – 39 years old, and approximately 23% were 55 or older - Approximately 53% were females - Approximately 54% had incomes between $101,000 – $200,000, approximately 22% were between $50,001 – $100,000, and approximately 20% were between $200,001 – $500,000 - Approximately 59% currently did not own a boat Ms. Ferber stated she had more information regarding the survey should anyone like it. In response to a question from the public, Ms. Ferber stated the survey did not include a question asking if people would want to live next door to a marina. CITY OF SHOREWOOD PLANNING COMMISSION MEETING 2 October 2007 Page 7 of 17 Mr. Maloney submitted correspondence he had received in support of SYC’s request. Mr. Jabbour stated from his vantage point the City’s goals and objectives of its zoning were inconsistent with the way the SYC was operating. In the late 1990s public access to Lake Minnetonka became a volatile issue; at that time there was a concerted effort to prohibit a certain public access from occurring on Maxwell Bay. He explained during that volatile time a public access task force was formed and it developed a standard the DNR would adhere to for future acquisition of land for public access to the Lake. The task force had identified the SYC property as a potential for public access. He questioned if the City wanted a “Valley Fair” version of a marina or a “Noremberg Gardens” version of a marina; allowing powerboats at the SYC marina did not necessarily mean chaos and disorder would prevail. James Gilbert, one of the attorneys for the SYC, stated over time he had represented virtually all of the multiple dock owners on Lake Minnetonka. He first met Mr. Jabbour in the 1980s when Mr. Jabbour bought the Tonka Bay Marina; at the time of purchase there were many issues with that marina that Mr. Jabbour quickly resolved. He stated the owners of the SYC had made a concerted effort to make the SYC a quality marina, but the number of sailboats had decreased significantly over the years while the number of powerboats increased significantly. He commented that the current SYC owners had told him they had not received had any complaints from their neighbors during their time of ownership. He stated the SYC owners would prefer to keep the marina operational by allowing some slip rentals for powerboats rather than sell the property to the DNR for public access. He commented that all the sailboats docked at the marina had motors on them. Based on sound testing Mr. Maloney had done over the past summer, and the results indicate some of the motors on the sailboats were louder than some motors on powerboats. Mr. Gilbert stated he thought the request under consideration could be a win-win for the SYC and the City’s residents without raising taxes. Based on the survey, the City’s residents wanted the ability to rent slips for their boats; currently only two of the City’s residents docked their sailboats at the marina. He commented that the LMCD had primary jurisdiction over lake use issues; although the municipalities had some jurisdiction. When the LMCD renewed the SYC’s multiple dock license each year it ensured the SYC was in compliance. He commented the LMCD did not distinguish between sailboats and powerboats; although size and density were different. He stated he had represented three different owners of the marina over the years; one of the owners went into bankruptcy in the mid 1980s. He encouraged the Planning Commission to recommend approval of this request. He stated the question at hand was not whether or not the marina should stay as it had the legal right to do so; the question was how the marina was going to be used. He stated the maximum size of powerboats that would be allowed at the marina would be 30 feet, (the majority would be 20 – 30 feet). Chair Schmitt opened the Public Testimony portion of the Public Hearing at 8:06 P.M. Peter Watson, 5495 Timber Lane, stated he had been a resident of Shorewood since 1975. During that entire time the Council and the residents of Timber Lane had been opposed to turning the SYC property into a commercial powerboat marina. He explained before John Cross sought a permit to construct a commercial marina to moor 270 boats in 1975, the SYC property had been a residential property with a single-family house on it. At that time many of the residents of Timber Lane spoke against the proposal and the City ruled against it, and the LMCD was not in favor of the proposal. Over the years Mr. Cross and subsequent owners of the SYC had made additional attempts to substitute powerboats for sailboats. Mr. Cross was originally granted a permit for 80 sailboats. A request was later granted to increase the number by building pier 4 at the marina; Mr. Cross justified his request by stating he needed the additional slips to make the SYC a more commercially viable operation. In 2003, Mr. Cross requested the limit on the number of powerboats that could be moored at the SYC be removed; that request was denied. CITY OF SHOREWOOD PLANNING COMMISSION MEETING 2 October 2007 Page 8 of 17 He stated he and his neighbors hoped the City would maintain its 32-year position which opposed the marina becoming a powerboat marina. Mr. Watson went on to state the character of the neighborhood was a quiet residential neighborhood, other than the Minnetonka Portable Dredging Company. That company had been in its location for a very long time; it was an essential utility on the lake and it was an asset to the community. The SYC operating as a sailboat marina had also been an asset to the community. The SYC had been a good neighbor; it kept the noise down, the clanging of halyards had not been a problem, there hadn’t been loud parties at the site, and boats leaving and returning to the marina primarily by Frog Island had not been a problem. He stated from his point there was a significant difference between a sailboat and a powerboat when they were moving through the water – a sailboat had a “fine entry and stern and it moved through the water very gracefully with very little resistance”; a powerboat did not need to have a “fine entry and a fine transom” as they can power through and over the waves because of their large motors. There was a big difference between wind powered and gasoline powered, and sails do not generate bad pollution. He stated he did not want the character of the neighborhood changed by adding 58 powerboats leaving and returning to the marina. He explained in recent years kayakers, canoeists, and electric-trolling bass fishermen used the waters near the marina. The proposal was to dock the powerboats at pier 4 and maybe some of pier 3; that would put them in the part of Gideon’s Bay where the propellers would do the most harm stirring up the phosphorous-rich sediments. He urged the Planning Commission to recommend denial of the request. John Mielke, 16311 Limerick Lane, Minnetonka, stated he had kept his sailboat at the SYC marina since he purchased it four years ago. He was also a canoeist on Gideon’s Bay, and the largest recreational motor he had ever owned was 3.5 horsepower. He shared many of Mr. Watson’s concerns regarding powerboats. He did want to continue keeping his sailboat at the marina, and he was concerned that without an additional source for revenue, the marina may not be viable. There were no longer enough people owning sailboats to keep the marina for sailboats only. He was a board member of the SYC association, and in that capacity he would do his best to ensure the quietness of the area was maintained. Power boaters would be included in the social events at the SYC, and they would be considered an asset. Roger Eide, 7105 Interlachen Court, Eden Prairie, stated he had owned Alibi Yachts for 27 years, and Mr. Maloney had asked him to help broker boats at the SYC. He stated he had sailed out of the SYC since 1982. He explained that he had been building custom sailboats in Taiwan for 25 years and his main builder stopped making sailboats for him two years ago; the demand for multi-million dollar custom powerboats had taken over. The number of sailboat builders in Taiwan had decreased significantly over the last 25 years. A prominent sailboat builder located in the United States had recently filed for bankruptcy. He enjoyed sailing, but if docking powerboats at the marina would keep it viable he would be in support of that. He commented that many past sailors now purchased powerboats because it was easier to use a powerboat as they aged. He asked that the request for powerboats be recommended so the SYC could remain viable. Steve Linder, 23730 Lawtonka Drive, stated he was one of the people that kayaked near the marina, and he did not think powerboats would impact that activity negatively. He stated he was in support of the SYC’s request for powerboats, although he would not want 50-foot powerboats to be docked at the marina. He stated he had lived at his current location for approximately six years, and he thought the SYC was a very good neighbor. From his perspective, the addition of powerboats could be managed such that it would not be a problem. He owned a powerboat that he did not currently dock on Lake Minnetonka, but he may be interested in becoming a member of the SYC if he could dock his powerboat there. He commented that he used to sail. He stated he hoped the SYC would continue to give preference to sailboats. CITY OF SHOREWOOD PLANNING COMMISSION MEETING 2 October 2007 Page 9 of 17 James Hancock, 23800 Lawtonka Drive, stated he was one of the two City residents that kept a boat at the marina. He had been a City resident for 12 years, and a member of the SYC for 9 years. He owned two canoes and kayaked on Gideon’s Bay. His property had lakeshore and it was located immediately adjacent to the west of the SYC subject parcels. He stated he did not object to the SYC having up to 50 percent of its boat slips for powerboat use. He stated three or four years ago there had been 16 powerboats there with no problems resulting, although the action was a violation by the previous owners. He had great respect for the current owners and he wanted them to be successful with the SYC. He strongly supported the SYC’s request and he thought a viable marina at that location was an asset to the neighborhood and the City. Julie Ingelman, 23720 Lawtonka Drive, stated she had lived in her townhouse for 10 years. She owned a powerboat and used it up north as she had not been able to get Lake Minnetonka access from her townhouse, although she paid property taxes as if she had Lake access. Over the last 3 years when she took care of her twin grandsons they spent a great deal of time on the trail and at the marina. She wanted the SYC to remain viable for today’s children to use. The SYC’s marina was a small marina that was conscientious of the environment and the neighborhood, and it was respectful of everyone. Don Blumberg, 23820 Lawtonka Drive, stated he was a neighbor of the SYC. During his 14 years at that location he admired the operations at the SYC. He had been a sailor since his youth, but felt he was too old to do so now. He had owned a powerboat which he sold a couple of years ago because he could not dock it close to his property for a price he could afford. He would like to own a boat again for slow cruising and to be able to keep it at a yacht club. He was in support of the SYC’s request to allow up to 50 percent of its dock slips for powerboat use. Cindy Heimerl, 100 Mound Avenue, Tonka Bay, stated she had lived on Lake Minnetonka for close to 50 years. Her family owned property at 460 Lafayette Avenue and it was directly affected by the SYC. She had concern about the noise; when a motor was started and was throttling it was loud. She was also concerned that large powerboats could be hazardous to children swimming in the Lake. She was sure that Mr. Jabbour would manage the power boaters to her satisfaction, although she had some reservations about partiers. She stated she did not have an issue with sailboats. If powerboats were to be allowed, she suggested the boats be docked on the farthest side of the marina and leave and return on the west side of Frog Island. Nick Ruehl, 456 Lafayette Avenue, Excelsior, stated that although he lived in Excelsior the Shorewood city line came right around his property and his dock was actually located in Shorewood. From his vantage point, Mr. Jabbour and Mr. Maloney were great owners and managers of the SYC. Powerboats in the marina would change the character of Gideon’s Bay, the visual character of the Bay, and potentially the noise aspect of the Bay. Powerboats were designed for cruising. Power boaters were less focused than sailors. Powerboats sat higher in the water than sailboats did, and 30-foot powerboats would be twin- screws rather than single-screws. He enjoyed powerboats. He questioned if a change in character of a neighborhood should be a requirement for a business to remain economically viable. When Mr. Cross originally applied to the City for putting a marina at 600 West Lake Street, he stated he would support it provided there would not be any powerboats, gas would not be sold, there would not be any halyards snapping, and there would not be any late night parties. Mr. Cross assured him that would be the case; therefore, he did not object to the request. Ruehl stated there had been a few instances in the past when partying on sailboats had been an issue with regard to noise; that had not happened recently. He stated he would prefer the marina remain for sailboat use; he questioned why that should change. He understood there were many people that would like to have additional access to Lake Minnetonka, but he questioned if the character of the neighborhood should be changed to accommodate that. He also questioned if the CITY OF SHOREWOOD PLANNING COMMISSION MEETING 2 October 2007 Page 10 of 17 long-term economic viability of the SYC should drive the change in character of the neighborhood. He preferred the use of the marina remain as it was. Jonathan Eisenberg, 2721 Bent Tree Circle, Minnetonka, stated he had a small sailboat that he had kept at the SYC for the past 9 years. He was a life-long sailor. He stated he would prefer that the marina remain for sailboats only if possible, but that was not economically realistic. He stated the SYC was a quiet and peaceful place on Lake Minnetonka. The marina was in a protected harbor, and boats were protected from the elements. He did not think the SYC was the type of place where people would want to have loud and active parties. When there had been powerboats at the marina at one time in the past, the power boaters arrived at the site, took their coolers to their boats, and slowly motored out of the marina while causing no disruption. He encouraged the Planning Commission to recommend approval of the request. Although he did not anticipate any problems because of the change, he was sure Mr. Jabbour and Mr. Maloney would resolve them quickly based on past practice if there were. He stated today’s economics required the SYC be allowed to have powerboats at its marina to remain viable. He hoped that the pendulum would swing back toward more sailboat use in the future. He suggested one way to allow for that would be to approve the request for a trial period of 3 – 5 years, and at the end of that time boating trends could be reviewed to determine if fewer powerboats were needed for the SYC to remain economically viable. He was concerned if the SYC did not remain viable, then the property would become a public access or a condominium development of 25 – 40 units that would probably request dockage for powerboats. Duane Bagdons, 5585 Timber Lane, stated he had owned his property which was adjacent to the SYC for 40 years, and that he owned a 115 horsepower Mariner bass boat with an electric motor for fishing. He stated he was apprehensive about the impact the marina would have on the neighborhood when Mr. Cross’s request was approved, and there had been only one situation early on which was immediately resolved that warranted that apprehension. Today, his problem was with the boom boxes blaring in the back seats of cars as the cars travel on County Road 19. He stated because of the character of the channel leaving the marina, a person would have to have their motor at minimum throttle until they were outside of the channel by Frog Island. He had no issue with allowing the SYC to have up to 50 percent powerboats at its marina. He stated he was not aware of any wild parties at the marina, nor was he aware of any excessive boat noise. Jack Kemme, Edina, stated he was the Commodore of the social club and therefore the club’s Board chair. He stated the Board considered the request for powerboats at great length, and it did not have any issue with it. He stated he was a power boater on a sailboat; he needed his motor to get out of his boat slip at the SYC marina and get to the north side of Frog Island before he could put his sails up on his boat and turn the motor off; that process would be reversed when he returned to his boat slip. Any boat leaving or returning to the marina would be at minimum throttle to maneuver and avoid the weeds; and anyone who had spent the money to purchase an expensive powerboat or sailboat would take care of their investment. He stated the membership was very protective of the SYC; many members they spent weekends at the SYC on their boat, and the membership was self policing. Recently a couple from Rochester joined the yacht club because they liked the ambience, the members, and the collegiality of the group. He stated the existing membership would ensure power boaters would behave consistent with the established culture and would abide be the existing rules. He was in support of the request. Bill Shields, 4101 Dublin Drive, Minnetonka, stated he had kept his sailboat at the SYC for the last 4 years, and he also owned a powerboat. He had been a life-long sailor and life-long power boater. He stated he grew up on the east coast where there were many mixed-use yacht clubs and marinas. For those he was involved with, the ones that worked best were those that had a club with membership that was self policing. The SYC marina was a valuable resource for the City and the rest of Lake Minnetonka; there was no other location for keel boaters to keep a boat. If people wanted to encourage sailing on the Lake, CITY OF SHOREWOOD PLANNING COMMISSION MEETING 2 October 2007 Page 11 of 17 the SYC must remain an economically viable business which could require powerboats be allowed at this time. Todd Frostad, 561 Indian Hill Road, Chanhassen, stated he had developed the Southlake Office Building in Shorewood, as well as other buildings around Lake Minnetonka. He stated the businesses that were tenants in the Office Building were generally small and owned by people who wanted to work closer to home. His tenants liked the view of the SYC across the street and the possibility of having a powerboat at the marina for quick access to it. He had considered purchasing the SYC property when it was for sale the last time, and if it were to be for sale again he may consider purchasing it again; he would consider how he could use the property differently. He was in support of the SYC’s request, and that was what he heard from others. Perry Ryan, 31395 Casco Circle, Navarre, stated he also owned the property located at 422 Lafayette Avenue and he had previously lived at 430 Lafayette Avenue for 8 years. He hoped to move to 422 Lafayette in the future. He stated he was not in support of the SYC’s request; it was not a reflection on the current owners and he was very respectful of Mr. Maloney. He stated the SYC owners bought the property 2 years ago with knowledge of the decline in sailing. From his vantage point, allowing powerboats would drastically change the ambience of the neighborhood. The applicants had showed that when boats would leave or enter the marina they would be a far distance from the properties on Timber Lane; what they did not show was when the boats went through the channel they came in front of the properties on Lafayette Avenue before they were past Frog Island. He stated he had never heard motors on sailboats when they would go by his property when he lived at 430 Lafayette Avenue. He stated there were places on the way out to the main water area where a powerboat could be more than 150 feet from the shoreline and therefore minimum wake restrictions would not apply (there were members of the public that stated it was marked as a minimum wake area). He stated changing the SYC’s C.U.P. to allow powerboats would reduce the value of his property on Lafayette Avenue. The traffic going past the houses on Lafayette Avenue would increase significantly. Rosemary Leone, 6243 Heathbroke Drive, Eden Prairie, stated she had kept her boat at the SYC for the last 7 years. She had been on the SYC’s membership council for two years. The membership council was responsible for social activities at the SYC. The membership council fostered responsible and accountable stewardship of its members. The members generally knew the other members and recognized their boats. The economics of the situation indicated that change must be instituted; and if change was not instituted the reality of the situation could force the sale of the SYC property and it could become a condominium development with docks for powerboats. Kevin Curry, Bloomington, stated he had been a member of the SYC since 1987 with the exception of 2006. Two years ago he was concerned the SYC would be sold so he relocated his boat to Sailors World Marina; that marina was a mixed-use marina (i.e., for sailboats and powerboats) and there was no problem resulting from them co-existing. He slept on his 31-foot sailboat at the SYC marina 6 – 10 times a year. He also slept on it when it was located at the Sailors World Marina; when power boaters returned to that marina in the evening they did no quietly. He was glad he had relocated his boat back to the SYC. Mr. Jabbour stated the entire channel area was designated a quiet waters area. Lake Minnetonka had an 82-decible sound rule; boats with motors having a decibel level higher than that were against the law. Also, it was not legal to have an exhaust system that could be switched to be above or below the water. He explained that the SYC owners had agreed to the following: the SYC would not have a full racing club which could result in five crew members per boat coming to the SYC in separate vehicles to race three times per week; the SYC would not host any fishing tournaments; the SYC would not be used to launch boats and then park vehicles while the boaters went boating; the SYC would not do full-time winterizing; CITY OF SHOREWOOD PLANNING COMMISSION MEETING 2 October 2007 Page 12 of 17 and the SYC would not sell gas. He stated they would prefer the SYC be able to rent its dock slips entirely for sailboat use; until that happened they wanted the option to rent some portion of the slips for powerboat use to generate necessary income. Chair Schmitt closed the Public Testimony portion of the Public Hearing at 9:06 P.M. Commissioner Meyer stated he was in support of recommending the application be approved, but he did have some questions. He questioned if it would be possible to require that powerboats go on the northwest side of Frog Island when they left and returned to the marina. Mr. Maloney stated open water laws would not allow that, but the membership contract could possibly stipulate that. Director Nielsen stated the City could list reasonable conditions as part of a C.U.P.; the LMCD had the primary jurisdiction over Lake Minnetonka. Nielsen then stated he would ask the City Attorney if that type of restriction could be included in the C.U.P., although monitoring and enforcing those restrictions could be difficult for the City; it would be more appropriate for the SYC to encourage that. Commissioner Meyer questioned if it would be beneficial to expand the conditions of the SYC’s existing C.U.P. to address concerns heard this evening (e.g., noise). Director Nielsen stated he thought it would be appropriate to review the conditions currently specified in the C.U.P. and determine if they were adequate to address concerns raised at the Public Hearing. He clarified that if the SLMPD received a report about noise during a designated quiet time, the SLMPD would provide the City with a report on that call but it would not issue a ticket. Commissioner Gagne stated he had gone to the SYC site to review it. He commented that if the SYC property were sold and used for a condominium development there would most surely be docks for powerboats. He suggested to Mr. Maloney that the applicants consider modifying their request to one that allowed up to 25 powerboats. He stated he would support a trial period of two years renewable yearly during which the SYC would be allowed to rent 25 slips for powerboat use; at the end of that trial period the situation would be reevaluated. He commented the Excelsior Fire District docked its rescue boat at the SYC and the LMCD periodically docked a boat there. Commissioner Ruoff stated he was trying to consider this request by assessing it for the community as a whole. If the SYC could not be economically viable without being allowed powerboats at the marina, then a possible outcome would be a condominium development with docks for powerboats. He would prefer the SYC property remain as a marina. He did have some hesitation about the request for up to 50 percent powerboats. He would support a trial period for allowing powerboats with the length of time and number of allowable powerboats yet to be determined. He noted that he did not make decisions based on economic reasons. Director Nielsen stated he wanted to dispel the idea that a 30 – 40 unit condominium development could be developed on the SYC property. In recent discussions by the Planning Commission regarding Planning District 6, the Commission had discussed that the potential development of the combined SYC and Minnetonka Portable Dredging Company properties for a 12-unit development. Mr. Frostad stated a few years ago when he was considering purchasing the SYC property the capacity had been for 25 – 30 units. Commissioner Hutchins stated the Planning Commission had recently addressed a relatively controversial issue regarding powerboats at the Upper Minnetonka Yacht Club’s (UMYC). He commented the UMYC’s also was experiencing financial concerns because of the change in boating trends; a similarity to the SYC. He stated he was not a sailor and did not have a bias either way with regard to the SYC’s request. He was very concerned about the environment and the appropriate use of the community’s natural resource. He thought the SYC’s request had some merit for considering some modification to the CITY OF SHOREWOOD PLANNING COMMISSION MEETING 2 October 2007 Page 13 of 17 SYC’s C.U.P.; but he was conflicted about it because the C.U.P. was provided to sailing yacht club and financial hardship should not be the basis for a change to a C.U.P. He did not know if he could favorably recommend the request. Commissioner Meyer stated the financial justification aspect of the request was just one factor. If the request were granted it would provide an opportunity to allow more of the City’s resident access to Lake Minnetonka. He commented there had been a great deal of support conveyed from residents in the SYC neighborhood, as well as from other individuals. He would consider a trial period of a yet to be determined length. Commissioner Geng stated he viewed the SYC’s request to be different from the issue with allowing powerboats at the UMYC; the UMYC property was zoned residential and the SYC property was zoned lakeshore recreational. Incorporating the residential aspects of the land into the community was consistent with the City’s Comprehensive Plan; power boating was one aspect, as was sailing. He thought allowing rental of some percent of the SYC’s boat slips for powerboat use would be appropriate; he was unsure of what the percent should be. Commissioner Ruoff stated if powerboats were to be allowed for a trial period, then he assumed at the end of the trial period the situation could be evaluated and the number of powerboats allowed could be either increased or decreased. He questioned how the trial process would be evaluated. Director Nielsen explained that the City received complaints at City Hall or as reported by the SLMPD. The SLMPD did not enforce the City’s zoning regulations. The City could possible conduct a noise study. Parameters would have to be identified to assess complaints. He stated he understood the Planning Commission to be indicating they would prefer the trial period to test the impact of powerboats at SYC on the surrounding area. He suggested the Commission discuss the issues with and parameters for a trial period at its October 16, 2007, study session. Chair Schmitt stated he viewed the request for powerboats by the SYC and the issue concerning powerboats at the UMYC as very different issues because of the difference in how the properties were zoned. He thought the SYC was a valuable asset to the City. He stated he would not make his decision based on economics, although that was often the reason most developments came before the Planning Commission; zoning changes frequently happened because of economics. He then stated he would like input from the applicant regarding what number of powerboats would have to be allowed to generate the necessary income from dock slip rentals. He stated he also had concerns regarding more traffic around the point; he would prefer it if traffic could be routed differently by the SYC. He would like to ensure there would be restrictions on the size of powerboats that would be allowed. Commissioner Meyer stated with regard to the number of powerboats, he suggested maybe the number allowed should be the number of boat slips on pier 4 (35). Chair Schmitt stated he understood the water depth at pier 4 would be sufficient for powerboats. Commissioner Gagne stated he would not recommend allowing more than 25 powerboats, for a time period of 2 – 3 years with it being reviewed at the end of each year. He suggested the City determine the number of powerboat slips rather than ask the SYC what it needed economically. Gagne moved, Geng seconded, continuing the discussion of the Shorewood Yacht Club’s request for a amendment to the text of the L-R, Lakeshore Recreational zoning district and an amendment to the conditional user permit that currently governs the activities on property to an October 16, 2007, CITY OF SHOREWOOD PLANNING COMMISSION MEETING 2 October 2007 Page 14 of 17 Planning Commission study session and to consider it further at a November 20, 2007, Planning Commission meeting. Motion passed 6/0. Chair Schmitt closed the Public Hearing at 9:35 P.M. Chair Schmitt recessed the meeting at 9:35 P.M. Chair Schmitt reconvened the meeting at 9:40 P.M. 2. 7:15 P.M. PUBLIC HEARING - AMENDMENT TO C.U.P. FOR MULTIPLE SIGNAGE Applicant: Shorewood Village Shopping Center Location: 23600+ State Highway 7 Chair Schmitt opened the Public Hearing at 9:40 P.M. Director Nielsen stated Patrick Daly, representing of the Shorewood Village Center, had submitted an application to revise the Center’s existing conditional use permit (C.U.P.) for multiple signage. The City’s Zoning Code allowed each commercial property up to three signs – one freestanding and two wall signs; properties with multiple tenants may, by C.U.P., have more signs based upon an overall sign plan approved by the City. Nielsen explained the City’s sign regulations provided that the total area of all signs on the property not exceed 10 percent of the building silhouette as viewed from the street. The applicant’s current application included a revised calculation for the silhouette which included the view from Lake Linden Drive; that area had not been included in the previous application. The revised calculations amount to 277 square feet more sign area and the total area had been allocated to various tenants within the Center. The applicant did not include all of the space it was allowed in the silhouette area; Staff suggested the applicant provide a revised calculation and reallocate the sign area accordingly. Nielsen then explained the applicant made his overall sign plan more generic; rather than listing specific businesses the signage was allocated to categories of space. That change should result in fewer amendments to the C.U.P. in the future when occupancy of the Center changed. Nielsen commended Mr. Daly, the property manager for the Center, for his responsiveness to the City’s concerns. Nielsen stated the Planning Commission could either recommend approval of the C.U.P. subject to the provisions specified in the Staff report, or it could be considered further at the October 16, 2007, Planning Commission study session. Stan Taube, owner of the Shorewood Village Center, stated the Center was currently 96.7 percent occupied. He then stated the lifeblood of the Center was the tenants; many tenants did not think there was adequate signage. He noted that the Center was not in a residential area; it ran parallel to Highway 7. He commented that Mr. Daly and Rick Ballentine, the signage consultant, were present this evening. Seeing no one present wishing to comment on this case, Chair Schmitt opened and closed the Public Testimony portion of the Public Hearing at 9:44 P.M. Commissioner Gagne questioned if the applicant would be allowed more signage if they included all the allowable space in the silhouette area. Director Nielsen stated it would. CITY OF SHOREWOOD PLANNING COMMISSION MEETING 2 October 2007 Page 15 of 17 Commissioner Gagne stated he would support recommending the C.U.P. for approval at this meeting subject to the provisions identified by Staff. Commissioners Meyer and Ruoff agreed. In response to a question from Commissioner Hutchins, Director Nielsen explained there was a 32 square foot maximum size restriction for temporary signs; the applicant would be allowed two per year for up to 10 days each and approval was subject to landlord approval and a permit from the City. He went on to explain there were four major tenants, and they would be allowed a combined total of 6 signs; the maximum size allowed for a single sign was 75 square feet. Meyer moved, Ruoff seconded, Recommending Approval of a Conditional Use Permit for Multiple Signage for the Shorewood Village Area, subject to the provisions specified in the Staff report and to the applicant providing updated silhouette area calculations. Motion passed 6/0. Chair Schmitt closed the Public Hearing at 9:50 P.M. 3. 7:30 P.M. PUBLIC HEARING – C.U.P. FOR ACCESSORY SPACE OVER 1200 SQ. FT. Applicants: Jon and Nancy Tellor Location: 20050 Excelsior Boulevard Chair Schmitt opened the Public Hearing at 9:50 P.M. Director Nielsen stated Nancy and Jon Tellor owned the properties at 20030 and 20050 Excelsior Boulevard. Water Street Homes, LLC – on behalf of the Tellors – had applied for a conditional use permit to construct a new guest house with a tuck-under garage and a swimming pool at the 20050 property. The existing buildings on the property would be demolished. The property was zoned R-1A, Single-Family Residential and contained approximately 39,399 square feet of area. Nielsen explained the proposed house contained approximately 1980 square feet of floor area. The garage beneath the main level had the same floor area with the garage door on the northeast side of the building. The lot would be accessed by a driveway that already served the applicants’ primary residence at 20030 Excelsior Boulevard. Nielsen reviewed how the Tellors’ request complied with the four criteria specified in Section 1201.03 Subd.2.d.(4) of the City’s Zoning Code for granting a conditional use permit for accessory space in excess of 1200 square feet. 1. The total area of accessory space (1980 square feet) did not exceed the total floor area above grade of the principle structure (1980 square feet). 2. The total area of accessory space did not exceed ten percent of the minimum lot area for the R-1A zoning district (.10 x. 40,000 square feet = 4000 square feet). 3. The proposed home and swimming pool comply with the setback requirements of the R- 1A zoning district. The easement on the lot needed to be extinguished prior to issuance of any building permit, and evidence that the easement on the property had been eliminated would need to be provided. CITY OF SHOREWOOD PLANNING COMMISSION MEETING 2 October 2007 Page 16 of 17 4. Since the garage was an integral part of the proposed dwelling, materials and design of the building were not considered to be an issue. The new building would compliment the Tellors’ house at 20030 Excelsior Boulevard. Nielsen stated staff recommended approval of the Tellors’ request subject to the following: 1. The applicant must provide evidence (prior to issuance of any building permit) showing that the easement on the property had been extinguished. 2. The applicant must provide (prior to release of the resolution approving the C.U.P.) a driveway easement and maintenance agreement, suitable for recording against the properties. 3. The applicant must record the resolution and driveway agreement within 30 days of receipt of the resolution approving the request. Nielsen noted that Rick Carlson, with Water Street Homes, LLC and representing the applicant, was present this evening. Mr. Carlson stated he had built the Tellors’ house located at 20030 Excelsior Boulevard. With regard to a letter the City had received expressing concerns about parking for construction vehicles and construction traffic, he stated there was adequate parking on the subject property. Seeing no one present wishing to comment on this case, Chair Schmitt opened and closed the Public Testimony portion of the Public Hearing at 9:54 P.M. In response to a question from Commissioner Gagne, Director Nielsen stated the City would respond to the letter from the concerned property owner. He also explained the Tellors would keep the new guest house property. Gagne moved, Hutchins seconded, Recommending Approval of a Conditional Use Permit for Accessory Space Over 1200 Square Feet for Jon and Nancy Tellor, 20050 Excelsior Boulevard, subject to Staff recommendations. Motion passed 6/0. Chair Schmitt closed the Public Hearing at 9:55 P.M. 4. 7:45 P.M. PUBLIC HEARING – C-1 ZONING DISTRICT TEXT AMENDMENT Chair Schmitt opened the Public Hearing at 9:55 P.M. Director Nielsen stated in 2006 the City spent a considerable amount of time updating and paring down its commercial zoning districts from 4 to 2. In the process of amending the City Code, two sections of the C-1 District were unintentionally omitted. Those sections provided requirements for setbacks and building heights in the C-1 District. Although it was extremely important to get these provisions back into the Code, the proposed amendment was considered to be very much a "house-keeping" measure. Seeing no one present wishing to comment on this case, Chair Schmitt opened and closed the Public Testimony portion of the Public Hearing at 9:57 P.M. CITY OF SHOREWOOD PLANNING COMMISSION MEETING 2 October 2007 Page 17 of 17 Meyer moved, Gagne seconded, Recommending Approval of a Text Amendment to the City Code to Include Setback and Height Requirements for the C-1 District. Motion passed 6/0. Chair Schmitt closed the Public Hearing at 9:58 P.M. 5. MATTERS FROM THE FLOOR There were no matters from the floor presented this evening. 6. DRAFT NEXT MEETING AGENDA Director Nielsen stated a joint meeting of the Planning Commission and Council was scheduled for 6:00 P.M. on October 16, 2007, and dinner would be provided prior to the meeting. Nielsen then stated there was continued discussion of Planning District 6 and discussion of the Shorewood Yacht Club’s request for a text amendment to the of the L-R, Lakeshore Recreational zoning district and the parameters for the SYC’s requested amendment to the conditional use permit that currently governed the activities on the property slated for the October 16, 2007, Planning Commission study session. 7. REPORTS Liaison to Council • Chair Schmitt reported on matters considered and actions taken at the September 10, 2007, and September 24, 2007, Regular City Council Meeting (as detailed in the minutes of that meeting). SLUC • No report was given. Other • None. 8. ADJOURNMENT Hutchins moved, Gagne seconded, Adjourning the Planning Commission Meeting of 2 October 2007 at 10:02 P.M. Motion passed 6/0. RESPECTFULLY SUBMITTED, Christine Freeman, Recorder