Planning Commission, May 9, 2023

PLANNING COMMISSION MINUTES Tuesday, May 09, 2023 at 6:00 PM Baxter City Hall, 13190 Memorywood Drive, Baxter, MN “A Growing Community” CALL TO ORDER The regular meeting of the Baxter Planning and Zoning Commission was called to order at 6:00 pm by Chair Kinzel at 6:00 pm. ROLL CALL MEMBERS PRESENT: Chair Bob Kinzel, Commissioners Steve Lund, Chuck Hiltner, Gwen Carleton, Howie Oswald, and Council Liaison/Mayor Darrel Olson MEMBERS ABSENT: None STAFF PRESENT: CD Director Josh Doty OTHERS: Matt Davis MINUTES 1. Approve the Planning and Zoning Commission Meeting Minutes from April 11, 2023. MOTION by Commissioner Carleton, seconded by Commissioner Hiltner to approve the Planning and Zoning Minutes from the April 11, 2023. Motion carried unanimously. Chair Kinzel stated that this Commission is a recommending body, and that final approval/denial is taken with the City Council on May 16, 2023. COMMENTS AND QUESTIONS None OLD BUSINESS None NEW BUSINESS 2. PUBLIC HEARING. Ordinance Text Amendment to allow “medical cannabis dispensary” as a permitted use in the C-2, Regional Commercial district (city file 23-11) THIS APPLICATION HAS BEEN WITHDRAWN BY THE APPLICANT 3. Planned Unit Development Sketch Review to receive informal comments regarding a development proposal at the southwest corner of Hastings Road and Evergreen Drive (city file 23-014) 5/9/2023 Planning Commission, May 9, 2023 Minutes Page 2 Chair Kinzel asked for the staff report. CD Director Doty stated before the staff report he would like to remind the Commission of what a Planned Unit Development (PUD) sketch plan is, as the Commission rarely sees an application for one. He explained the PUD sketch plan process, where the city reviews the plan and provides comments to the developer in advance of investment into complete plan sets to request formal zoning approval. This helps the developer to understand what thoughts the city might have on the plan. This sketch plan also went to the Long Range Planning Commission, the Utilities Commission and will go to the City Council. CD Director Doty started his presentation. The applicant, Fortress Holdings LLC, is requesting a Planned Unit Development (PUD) Sketch Plan review of a mixed-use development for business and three-story multi-family apartment development on a 38-acre property at the southwest corner of Hastings Road and Evergreen Drive. Specifically, the attached PUD Sketch Plan shows a 25,400 and 16,400-square foot commercial/industrial buildings along State Highway 371 and Hastings Road. The plan also shows four, three story, 70-unit apartment buildings and detached garage buildings for the apartments along Hastings Road and Evergreen Drive. There is one building on the subject site, which would be removed to allow development. The applicant and staff agreed the application should go to the Long Range Planning Commission. The City’s Comprehensive Plan identifies the site as “Business Gateway” on the City’s Future Land Use Plan. A Business Gateway Zoning District has not been established by the city, but a draft of the zoning district is provided in the appendix of the Comprehensive Plan and is in your packet. The Comprehensive Plan States the following regarding lands guided as Business Gateway: “The Business Gateway land use is intended to provide for office, light industrial and limited retail uses that create a high quality, attractive “north woods” image at the City’s southeast and west gateways on Highways 371 and 210.” The comprehensive plan also states that the PUD process may also be used by developers to make requests for customized development plans that provide variations to the strict application of Gateway Ordinance Standards. He noted the Future Land Use Plan is guided by the Comprehensive Plan and should be consistent with each other. CD Director Doty reviewed the aerial location with the Commission. He spoke of the wetlands, flood plain, separation from saturated soils, topography and the structure on the property that would be removed. He then reviewed the proposed site plan with the Commission. He noted the Commercial/Industrial buildings and the apartment buildings and garages. CD Director Doty reviewed the Long Range Planning Commissions comments regarding this proposed sketch plan. One of their comments was that they did not think that a comprehensive plan amendment was necessary and that a PUD request could allow mixed use. This would allow the developer to move forward with applications to the Planning Commission and City Council. CD Director Doty reviewed the current zoning district is Office Service (OS), which is comparable to the Business Gateway District in that both allow a range of office use. However, the OS zoning doesn’t work for the the proposed development, therefore the applicant would have to go through the process of rezoning to a PUD. CD Director Doty stated there were comments from staff and on May 3, 2023, the Utilities Commission reviewed the application. They offered the following comments:  The development would include the reconstruction of Evergreen Drive to install sanitary sewer, water, stormwater, and roadway improvements. Hastings Road currently includes the necessary infrastructure to support the development. 5/9/2023 Planning Commission, May 9, 2023 Minutes Page 3  The proposed development will require sewer and water improvements on private property which will require a development agreement.  A stormwater facility maintenance agreement will be required to meet MS4 requirements.  The city and the County completed a CSAH 48 corridor study in 2022 which reviewed potential traffic impacts to the system based on the current development and future development using zoning information from the Comprehensive Plan. Staff will require an update to the traffic study to be completed with the development to verify the proposed traffic counts are consistent with the corridor study.  Concern was raised that the garage units stay a part of the apartment complexes and since this is an amenity for the apartment complex the access for the garage units should be internal. A City/County traffic study has been completed for this region of the city. As part of the development review, a review of the traffic study must be conducted to make sure that the intended uses are consistent with the City/County traffic study. In addition, an internal traffic study review should be completed with the development plan review for consideration of the following: a) roadway design, b) multi-modal analysis c) access intersections/control, d) internal site circulation and e) emergency services. In 2015 when the Business Gateway District was being discussed, there was a lot of discussion on keeping as many trees as possible along the Highway corridor. With this proposal there is not a lot of tree preservation with the pond and parking. There is also a need for the developer to have visibility for his project. Multi-modal pedestrian connectivity immediately beyond the development site does not exist today. Therefore, even if the developer were to propose a multi-modal development plan on site, the residents of the apartments and employees of the business properties would not be connected to a city trails system, nor would there be a link to the City’s parks system. Staff notes that this is a significant concern for the development, as the city has requested multi-modal connectivity with new developments. CD Director Doty reviewed different trail options on an aerial and spoke of the re-routing of the Paul Bunyan Trail. He noted that there will be a segment without a trail so this development would not connect to Berrywood Park. CD Director Doty reviewed Hastings Rd. and Evergreen Drive. He discussed the need for Evergreen Drive to be re-constructed and the need for additional right-of-way. Staff recommends approval of the attached resolution providing PUD sketch comments for Fortress Holdings LLC for property at the southwest corner of Hastings Road and Evergreen Drive. Chair Kinzel asked for clarification on the location, CD Director Doty confirmed the location. Chair Kinzel asked how many acres, CD Director Doty indicated roughly 40 acres with roughly 28 being buildable due to wetlands. Commissioner Carleton asked staff what type of commercial/Industrial was proposed. CD Director Doty asked for the applicant to answer that when the Chair calls him to the podium. 5/9/2023 Planning Commission, May 9, 2023 Minutes Page 4 CD Director Doty stated this is not a formal hearing, however the Commission can call the applicant up to the podium to answer questions and give any feed back to what he heard tonight. Mr. Matt Davis, Fortress Holding, LLC approached the podium. He gave the history of his wife and him purchasing the property tax forfeit five years ago. Prior to purchasing, he met with staff to see what could be done on this property. They purchased the property with the hope of developing the property to clean up the rough looking building. He answered the question for Commissioner Carleton and indicated the commercial building would be used for one of his businesses, which is a flooring business. The building would have 50% retail showroom and 50% storage. His business only needs 15,000 square feet, the other 10,000 sq. ft. would be a tenant build-out. He indicated they are currently in discussion with a similar use but not a competing business. Commissioner Carleton asked if the commercial building was in phase one. Mr. Davis indicated that commercial building is an allowed use, noting that it is not an over-the-counter permit, but obtaining a building permit is the only process. The high density residential is not an allowed use, that component is the biggest one that he is trying to get feedback from the Commission. Commissioner Carleton asked how many apartments were being proposed. Mr. Davis responded that the company he is working with to build the apartment has an 84-unit model. He is proposing 70 units due to the topography, and one would be closer to 60 units. Commissioner Carleton asked about the garages, the proposal has underground garages and exterior garages for the residents. The exterior units are for those that can’t fit everything into a 1,000 sq. ft. apartment or are in the process of moving into a home. Commissioner Carleton asked how you know there is a need for that many apartments, as there are several being built currently. Mr. Davis referenced the housing market study that was completed. The study he felt was conservative with the number of people trying to move out of the metro area. Mr. Davis gave an example of one of his employees that got tired of the metro, quit his job, and bought the first house they could without even having a job first. Commissioner Carleton asked about the other design in the packet. CD Director Doty indicated that was a PUD Sketch in 2015 by a different developer. Mr. Davis indicated that he included that because he has been talking to their team and both property owners are looking at a mixed use and an apartment component. Chair Kinzel asked if he had any concerns over the comments he has heard from the Commissions and staff. Mr. Davis indicated that he had no concern with the garage doors being flipped around. He noted that there is a need for more than 50 units, they wanted to double that number, however the TEP Panel and the stormwater management that was created had an impact on the wetland and they did not like that, therefore it was scaled back. Chair Kinzel indicated/asked if there were a lot of wetlands on the property. Mr. Davis indicated that there was and showed his wetland delineation. CD Director Doty showed on a map the area that was delineated but that area did not have the paperwork for the second lot. Chair Kinzel asked if there was enough room to keep the water shed from the wetlands on their property. Mr. Davis indicated that Baxter has a 100-year storm water regulation, he doesn’t care for ponds being so big, but the pond will be there and meet the city requirements. Chair Kinzel stated he liked the concept, however, has a hard time envisioning what this will look like. Mr. Davis noted not having elevations showing what the building will look like. Chair Kinzel also had a concern about trying to fit too much on a site and/or the costs going up and then items not being done as presented. Mr. Davis explained the difference between an “A” class apartment, ones that are in Minneapolis paying $5,000.00 for 1,000 sq. ft. and a “B” Class apartment. He stated these will be “B” Class trying to make it look higher end. They want to keep as many trees as possible to not 5/9/2023 Planning Commission, May 9, 2023 Minutes Page 5 have to buy more trees in the future. Mr. Davis spoke of how access isn’t the best, so you have to have the right kind of business for the location. Commissioner Oswald asked about the number of bedrooms per unit. Mr. Davis stated they are mostly one-two bedroom units, with a few studio apartments. There will not be any three-bedroom units. Chair Kinzel stated that there was a traffic study done for this area. CD Director Doty stated that there was a need for a larger traffic study along County Rd. 48, and a study was recently completed. Staff is stating that an update of the existing study is needed to include the number of units and businesses specific to this site, prior to submitting zoning applications for approvals. Chair Kinzel asked about the phasing and landscaping. Mr. Davis indicated this is going to be a phased project, it will not be clear cut for the whole project. The commercial building they are hoping to have a permit submitted yet this year. While that building is in process the apartments would be worked on with staff, then an apartment building and set of garages each year after. Commissioner Hiltner questioned the housing study and the need for more apartments, with the amount of apartments that are already under construction. He asked CD Director Doty to explain the housing study. CD Director Doty stated the County HRA completed the Housing Study for the whole county, not just Baxter. That study determined a need for more units throughout the county. Commissioner Hiltner asked how old the study was, Mr. Davis believed it was 2020, CD Director Doty agreed it was a few years old. CD Director Doty asked the Chair/Commission for comments regarding the residential piece that staff had a strong opinion on prior to the Long Range Planning Commission meeting. CD Director Doty stated that this was to be a business district and there is business use surrounding the proposed residential property. The developer showed a property to the south with a similar mixed-use development. CD Director Doty asked the Commission to provide the developer with any feedback they might have regarding the residential piece for the development. Commissioner Hiltner noted that the Baxter Industrial Park is well maintained and to mix in apartments he didn’t have a concern. He did note with that amount of people a park is lacking in that area, Chair Kinzel agreed. Commissioner Carleton commented on the interior trails being nice. Mr. Davis shared with the Commission that he would like to put a meandering trail through the wetland in the future. Commission Lund asked that when this comes back through the Commission, he would like to see signage addressed, a drainage plan, traffic, improvement to Evergreen and 48, making a left off of Douglas Fir to College Dr. will be interesting and pedestrian movement in that area. He added the mixed use will fit in the area with the other apartments and that he liked the plan. His only concern is using industrial property and where future industrial uses would go. He is excited to see the development move forward and asked about a time frame. Mr. Davis indicated that it is going to move fast, he is meeting with the apartment partners this Thursday. Chair Kinzel stated it sounds like Mr. Davis has the blessing of this Commission to move forward. UPDATES 4. State Highway 371 Corridor Study Chair Kinzel asked staff for the update. CD Director Doty stated that MnDOT is starting a corridor study from the Mississippi River Bridge on the south end of town to just south of Nisswa. The last time Baxter a MnDOT corridor study of State Highway 371 in Baxter was in 2001. The study 5/9/2023 Planning Commission, May 9, 2023 Minutes Page 6 determines the plan for this highway corridor for the next 20 years. Staff is informing all the Commissions of the study and will let you know of any upcoming meetings. Chair Kinzel stated studies like this study cost money and bring change. Commissioner Carleton asked if MnDOT would help with the pedestrian bridge going over the highway. CD Director Doty stated that would be brought up though the study as an item that city staff has shared. ADJOURN MOTION by Commissioner Hiltner, seconded by Commissioner Oswald to adjourn the meeting at 7:02 p.m. Motion unanimously approved. Approved by: Submitted By: ___________________________ ______________________________ Bob Kinzel Shanna Newman Chair CD Administrative Assistant