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PC-05-06-14 CITY OF SHOREWOOD COUNCIL CHAMBERS PLANNING COMMISSION MEETING 5755 COUNTRY CLUB ROAD TUESDAY, MAY 6, 2014 7:00 P.M. MINUTES CALL TO ORDER Chair Geng called the meeting to order at 7:07 P.M. ROLL CALL Present: Chair Geng; Commissioners Davis and Maddy; and Planning Director Nielsen Absent: Commissioners Labadie and Muehlberg APPROVAL OF AGENDA Maddy moved, Davis seconded, approving the agenda for May 6, 2014, as presented. Motion passed 3/0. APPROVAL OF MINUTES  April 1, 2014 Davis moved, Maddy seconded, approving the Planning Commission Meeting Minutes of April 1, 2014, as presented. Motion passed 3/0. S T U D Y S E S S I O N 1. DISCUSS SENIOR HOUSING Director Nielsen noted this is the third time the Planning Commission has started down the path of discussing senior housing in the City. He explained there has been some interest shown by developers in senior housing for the Smithtown Crossing Redevelopment Study area and another area in the City. He has told the developers that the City’s density regulations will not meet their needs for the types of projects they are considering. He recommended the Planning Commission and City Council address it before a developer comes in with a proposal. He explained his staff report goes through the three levels of elderly (senior) housing included in the City’s Zoning Code, noting that the United States Department of Housing and Urban Development (HUD) refers to it as housing for people over 55. The levels are: 1) independent living; 2) assisted living (minimal care); and, 3) care facilities. There are different styles of independent living with one being the “cottage style”. There were two successful cottage style independent developments done in the City – the Shorewood Ponds and The Seasons. Those developments seemed to have satisfied people for a time. The City does not have any apartment style independent living, assisted living or care facilities. CITY OF SHOREWOOD PLANNING COMMISSION MEETING May 6, 2014 Page 2 of 7 Over a year ago the City amended its Code to allow for accessory apartments. That would support adult children moving back in with their parents and having their own living quarters or parents could move in with their children and have their own living quarters. To date there have not been many applications made to do that. The senior housing developers he has spoken with have talked about various things. One talked about having all three levels in one project. Another spoke about a cooperative senior apartments project. The City Ordinance addresses nursing homes. Senior apartments and assisted living are not possible under the City’s density regulations. The Smithtown Crossing Redevelopment Study area has between 4 and 6 acres depending on whether or not the last two residential lots (one of which is owned by the City) are included. If the 4 acres were to be developed with the City’s current density of 10 units per acre only a 40-unit facility could be built. Developers want to develop larger facilities. The size of projects discussed ranged from a 60-unit project to a 100-unit project. There has been discussion about considering an independent living project from a density perspective and having a reduced density for assisted living. Generally there are fewer couples living at assisted living facilities and few of them are still driving vehicles. For care facilities parking is needed for the employees and visitors only. Staff has researched the elderly housing standards for eight communities in the area that have fairly contemporary zoning ordinances – the Cities of Burnsville, Chanhassen, Chaska, Eden Prairie, Minnetonka, Minnetrista, Plymouth and Wayzata. In general most cities that allow senior housing and assisted living tend to reduce the density requirements somewhat. For the Smithtown Crossing Redevelopment Study area one of the options for a mixed-use project was to allow the entire site, including the commercial area, to be counted for density purposes. Another for that area would be to increase the allowable density for that area (e.g., 15 or 17 units per acre). Assisted living units would be counted as partial units (e.g., one-half units). Another approach is a density transfer which would allow for transferring allowable density from another site and applying it to the subject site. For example, the allowable 8 units per acre for the City-owned lot at the end of the area located in the R-1C District could be transferred to the other 4 acres. He recommended the Planning Commission explore some, if not all, of the options with a specific focus on the Smithtown Crossing Redevelopment Study area. It is the only site that involves commercial property. The property another senior housing developer was looking at is zoned R-1C which allows 10 units per acre. He is not sure he would recommend a density increase for that property because the R-1C zoning district is supposed to be transitional zoning. He suggested changing zoning density for the Smithtown Crossing Redevelopment Study area only and making a change so that assisted living units do not count as full units. One developer he spoke was considering an 80-unit project with 30 independent apartments, 30 assisted living units and 20 beds for care. He thought the City Ordinance could be amended in such a way as to make that project work if assisted living is not considered a full unit. If that wasn’t the case the density would have to be increased to 15 units per acre assuming the entire site is used. With regard to parking, the City requires two spaces per unit for any type of senior housing. A lot of cities allow less than that. For example, Burnsville requires 1 space per dwelling unit for retirement housing with one-half of them being enclosed. For assisted living it requires one-half space per dwelling unit. For nursing care facilities it requires 1 space per bed plus 1 space per employee for the maximum shift of CITY OF SHOREWOOD PLANNING COMMISSION MEETING May 6, 2014 Page 3 of 7 employees. Developers are going to argue that 2 spaces are not needed for apartment style independent living because residents typically only have one vehicle. One way of addressing that is to require proof of parking which requires the developer to provide for 2 spaces per unit yet only require that a lesser number be built. The developer will have to allow for the amount of parking that would be needed be the City will not allow for on-street parking on Smithtown Road. For senior housing projects the City gives breaks on utility charges and park dedication fees. If the facilities are later converted to condominiums, for example, the remainder of the park dedication fees would have to be paid and the additional parking would have to be built. Nielsen stated if the Commission is agreeable he would like to take some of the things discussed and put them into ordinance format and hold a public hearing on the amendments. In response to a comment from Commissioner Geng, Director Nielsen explained that technically the way the Smithtown Crossing Redevelopment Study area is zoned it does not allow senior housing at all. The City could allow that under a planned unit development (PUD) which senior housing requires. The City could allow a mixed-use development. There currently is no standard for the C-1 zoning district. The R-C zoning district allows 10 units per acre. It is reasonable to assume that if senior housing will be allowed in the C-1 zoning district that the City would allow at least 10 units per acre. Director Nielsen stated that most of the 8 cities researched don’t allow terribly high density with the exception of Wayzata which allows as much as 43 units per acre for a project for people over 62 years old. Commissioner Geng asked if that changed recently to accommodate the new development. Nielsen highlighted the density of some of the other cities. He noted that Chanhassen does not allow a break for assisted living – a unit is a unit. Geng asked if those communities are attracting senior housing developers. Nielsen responded they are and noted the City is competing against those cities which allow density over 10 units per acre. Nielsen noted that none of the cities allowed for high-rise apartments senior housing. The City is in sync with the heights they allow. Commissioner Davis noted that cooperatives have to be 3 stories high. She stated they appear to be long structures. Director Nielsen displayed some drawings of different types of developments. Commissioner Davis stated she thought 80 units per acre for the Smithtown Crossing Redevelopment Study area would be too many. She then stated there was a mixed use elderly housing project for another city and people were not interested in the independent living units because they were associated with the assisted living and care facilities. It ended up being all assisted living, care facility and hospice care. She noted that she thinks that is a failed strategy. Director Nielsen stated he has seen that mixed elderly housing work. He then stated the care facility could be separate. Commissioner Geng stated Presbyterian Homes in Spring Park has all three levels of elderly care and noted that it is quite a large campus. Geng asked what potential developers are saying about the commercial aspect of the Smithtown Crossing Redevelopment Study area. Director Nielsen stated one of the developers would like to use the entire 4 acres for senior housing, however, he told that person that the Smithtown Crossing Redevelopment Study indicates a desire to have some of the site be commercial. CITY OF SHOREWOOD PLANNING COMMISSION MEETING May 6, 2014 Page 4 of 7 Director Nielsen stated one developer did a senior housing project and VFW together. Commissioner Davis said the daily lunches and bingo were a big hit. Director Nielsen stated the City needs to be ready for when a developer wants to be serious about redeveloping the Smithtown Crossing Redevelopment Study area. Commissioner Geng asked how developers have reacted to the Smithtown Crossing Redevelopment Study. Director Nielsen responded they appreciate having it. Director Nielsen asked the Commissioners what their thoughts are on the different options he presented. Commissioner Davis stated that all of the options should be available. Commissioner Geng concurred and noted that doing so would maintain maximum flexibility. Director Nielsen stated the Smithtown Crossing Redevelopment Study conveys that the more a developer does what the City would like the more the developer gets. He then stated he thought the options could be worked into an ordinance amendment. He noted he has no problem with it applying to just the Smithtown Crossing Redevelopment Study area. He stated he needs to give 10 units to the acre for the R-C zoning district more thought. He suggested looking at the R-C sites before making that suggestion. Commissioner Davis stated her property is 1.23 acres in size. If there were to be 30 units on her property all parking would have to be underground for residents. She then stated the co-op her mother-in-law lives in has about 20 parking spaces outside yet she has never had a problem finding a parking space when she goes there. There is also parking on the street behind. Director Nielsen stated he will draft a Zoning Code text amendment which would incorporate the options he has spoken about. He then stated he will lay out the scenarios he spoke about for the Smithtown Crossing Redevelopment Study area (e.g., what would 15 units to the acre look like on the 4 acres). The height for the 4 acre site would be 3 stories. The 2 residential lots, if they are included, would be limited to 2.5 stories. He noted a public hearing would have to be held for the amendment. He stated he does not think the Smithtown Crossing Redevelopment Study would have to be amended if the ordinance amendment is approved. Commissioner Davis recommended looking at the Smithtown Crossing Redevelopment Study to ensure everything is up to date. Commissioner Maddy expressed concern about the demographics when the baby boomer generation stops accelerating their entry into senior living housing. He questioned what will happen to all of that housing that gets built. Commissioner Davis asked what will happen to all of the memory care facilities everywhere. Commissioner Maddy clarified he does not want to shut the door on reuse for the Smithtown Crossing Redevelopment Study area. But, he also does not want to have a huge traffic mess in 20 years. Director Nielsen stated that by requiring proof of parking the parking situation could be handled if the development was converted to condominiums. Commissioner Geng stated he is intrigued by the proof of parking stipulation. CITY OF SHOREWOOD PLANNING COMMISSION MEETING May 6, 2014 Page 5 of 7 Commissioner Maddy stated he likes having some commercial as part of the mix for the site. He asked if a commercial and senior living mix would be included in the text amendment strictly for the Smithtown Crossing Redevelopment Study area. Director Nielsen noted the Smithtown Crossing Redevelopment Study suggests a mixed use zoning district for that area. He stated that because there is only one project area that the ordinance amendment would apply to the mixed use could be addressed with the PUD requirements already included in the Zoning Code. Commissioner Maddy stated during a discussion with a developer who built a multi-unit development where one side of the structure overlooked the river and the other side overlooked the street he learned that the first units to go were those that overlooked the street because residents wanted to watch activity outside. Director Nielsen stated the last time the Planning Commission discussed the Smithtown Crossing Redevelopment Study area they wanted at least some portion of the site to be developed commercial. The Study does not say how much should be commercial. Commissioner Davis stated a potential developer presented a concept of some type at an American Legion meeting. Director Nielsen stated he will have a draft ordinance text amendment ready for the June 3 Planning Commission meeting. Commissioner Maddy stated the marina property could be another place for senior housing. 2. MATTERS FROM THE FLOOR There were no matters from the floor presented this evening. 3. OLD BUSINESS / NEW BUSINESS Commissioner Geng asked Director Nielsen for an update on the proposed Summit Woods planned unit development (PUD). Director Nielsen explained that Council approved the Development Stage plans for the PUD subject to the Planning Commission’s recommendations and staff’s recommendations. Council also added the condition of having staff and the developer assess the site lines and location of the driveway for the most northerly lot. There was discussion about moving it down and possibly consolidating it with the second lot. Staff and the developer have determined that it would be better to locate that particular driveway as far north as possible so that it lined up with Summit Avenue versus being more around the corner from it. That could be a moot point if Council chooses the cul-de-sac option for improving Summit Avenue because it would not matter where the driveway enters the cul-de-sac. He noted Council and staff have taken the residents’ comments about the roadway being substandard and having safety issues seriously and feel serious consideration needs to be given to addressing them whether or not the PUD comes to fruition. He stated the cul-de-sac option is the most feasible of the options albeit not ideal. He explained that Hummingbird Road would end up being a very long cul-de-sac street. He noted that when he first started with the City the City allowed cul-de-sacs to be 2,000 feet long. The current standard is 700 feet. He explained if no significant improvements to the roadway are made or if other improvement options are chosen that driveway needs to be as far north on the lot as possible. He stated the proposed driveway turnouts will make it easier for drivers to enter onto Summit Avenue facing forward. CITY OF SHOREWOOD PLANNING COMMISSION MEETING May 6, 2014 Page 6 of 7 He clarified that the Planning Commission will not consider the Final Plan Stage plans. He explained that during Council’s consideration of the Development Stage plans on April 14, 2014, someone made the comment that the Planning Commission and Council would both consider the Final Plan Stage plans. He noted there have been times when the Planning Commission had asked to consider the final plans but that was not the case for this PUD. He noted that a fairly long article was published in the April 24, 2014, Sun Sailor Newspaper about the proposed PUD. He stated the residents have made a big issue about Summit Avenue and one resident who has been very vocal about the roadway objects to any of the improvement options being considered. Commissioner Geng asked Director Nielsen for an update on the proposed Boulder Cove development in the City of Chanhassen. Director Nielsen stated that project is moving forward. It’s his understanding that Chanhassen did conduct some type of traffic study; something Shorewood asked for. He noted Shorewood cannot stop that development. He explained staff had raised concerns about the new units being what is termed NextGen (somewhat like a duplex). Chanhassen has conveyed that the developer will not get to make all of the units NextGen; only some. Even if all of the proposed 31 units were regular single-family dwelling units nd the development would still generate a lot of extra traffic on West 62 Street and on Strawberry Lane. Shorewood is going to have to look at doing some improvements to Strawberry Lane. For example, constructing a trail or upgrading the roadway and adding a trail. He noted a lot of children walk on Strawberry Lane. He stated if a trail were constructed there could possibly be a slight reduction in traffic because it would be safer for children to walk to the Minnewashta Elementary School. Commissioner Geng asked if there is any indication that Chanhassen will change its density requirements. Director Nielsen responded he has not heard any indication of that. Nielsen stated he has not seen anything in Chanhassen’s zoning requirements that require large lots. A 15,000 square foot lot is fairly typical in Chanhassen. Going down to a 9,000 square foot lot would not be a big deal there. The Metropolitan Council is pushing for affordable housing and density. nd He noted that West 62 Street is a substandard roadway. Any improvements to it would be a joint effort between Shorewood and Chanhassen. Commissioner Davis stated driving children to the School is not a pleasant experience. She then stated that the new Smithtown Road west sidewalk is beautiful; it was a nice project. Director Nielsen concurred that the trail is very nice. Director Nielsen stated that planning is underway for the Smithtown Road east sidewalk/trail segment which is slated for construction in 2015. He clarified no decision has been made regarding which side of the roadway it should go on. He noted that the Planning Commission will go on a trail walk for that segment this year. There was miscellaneous discussion about the notice to remove items on the property located at 25560 Smithtown Road and a person wanting to build a tree house in a tree located in public right-of-way (ROW). Director Nielsen noted that on the May 12, 2014, Council meeting agenda there are three appeals to notices to remove. CITY OF SHOREWOOD PLANNING COMMISSION MEETING May 6, 2014 Page 7 of 7 4. DRAFT NEXT MEETING AGENDA Director Nielsen stated a conditional use permit for Xcel Energy is slated for the June 3, 2014, meeting agenda. There is another application that will also be on the agenda. He will have a draft ordinance for elderly housing drafted for discussion during the meeting. He then stated that as early as June the Planning Commission could go on a trail walk for the Smithtown Road east trail segment. Commissioner Davis stated when that trail segment was discussed a number of years ago those were the residents that were for it. Director Nielsen clarified some of those residents were in strong opposition to the trail. Commissioner Geng stated the Planning Commission needs to select liaisons to Council meetings during its June meeting. 5. REPORTS • Liaison to Council Director Nielsen stated that during its April 28, 2014, meeting Council passed the Korin subdivision. He noted the applicant is reevaluating whether or not it wants to subdivide it or sell it as one piece of property. There was miscellaneous discussion about some other properties not related to the Council meeting. • SLUC • Other Commissioner Davis noted that she will not attend the June 3, 2014, Planning Commission meeting. 6. ADJOURNMENT Maddy moved, Davis seconded, Adjourning the Planning Commission Meeting of May 6, 2014, at 8:22 P.M. Motion passed 3/0. RESPECTFULLY SUBMITTED, Christine Freeman, Recorder