Offer a motion to approve Resolution No. 2018-015, a resolution approving the proposed Conditional Use Permit for an over-height structure, subject to the conditions noted in the draft resolution, and move its adoption.

Staff recommends the Board approve the proposed Conditional Use Permit for an over-height structure, subject to the conditions noted in the draft resolution. 

Site Information

Applicant:                   Enclave Development

Property Owner:         City of Shakopee

Location:                     129 Holmes St. S.

Current Zoning:          Central Business (B3) Zone

Lot Size:                      0.657 Acres

Introduction

Enclave Development, applicant, and the City of Shakopee, property owner, have made application for a conditional use permit for an over-height structure in the Central Business (B3) Zone. The proposed structure would rise 65 feet, which is ­­­­20 feet higher than the permitted 45 foot height limit in the B3 Zone.

Discussion

The proposed project would consist of a 82-unit apartment structure combined with ground floor retail fronting Holmes St. and 113 parking spaces to be located in a single sublevel and on the street level behind the retail, apartment lobby and amenities. The retail tenet has not been identified as of yet, but could possibly feature a restaurant wine bar or another similar concept. The residential portion of the project will rise above the ground floor concrete podium an additional 4 floors, on top of the podium will be an amenity space for residents and most units will have outdoor deck space to be recessed into the structure as seen in the provided renderings. The garage entrance is proposed to be a right in and right out entrance located on the 2^nd Avenue frontage. Included in the garage area will be a bicycle storage and work space for residents, on the 2nd Avenue frontage.

Building materials will consist of stone at the ground level with brick and metal accents rising three floors above and topped off with the metal accents covering the entire 5th floor. The structure will combine classical elements from the turn of the century brick buildings of downtown with a modern flair. The recessed balconies and protruding brick will help give the building an element of depth, something many similar projects lack.

Mixed-use developments like this are permitted in the B3 Zone. As listed below, the development proposal meets all other design standards in the B3 Zone aside from the height.

Parking requirements do not apply to any parcels within the B3 Zone, but the applicant, being cognizant of occasional parking issues in the area, is proposing enough parking spaces for each bedroom in the development and additional parking spaces for limited retail traffic or resident visitors. The applicant and city staff are also discussing the possibility of renting or leasing some parking spaces from the adjacent city parking lot for any overflow parking needs for the structure and the proposal will not have a significant effect on parking or traffic in the area, there will likely even be less traffic impacts from the proposed project than the previous use of the site as the former Shakopee City Hall. In addition, the applicant will need to submit a Traffic Impact Study to be approved by city staff before a building permit is approved.

Over-height structures are listed conditional uses in the B3 Zone [Section 151.043 (C) (16)], with specific conditional standards, as follows [Section 151.013 (B) (39)]:

(a)   Shall submit a map showing shading patterns created by the over-height structure; and

(b)   Shall be setback from each property line a distance equal to half the structure height.

The shadow study is included in the submitted materials and indicates that the proposed project will not have significant impacts upon the enjoyment or use of neighboring parcels. The most significant shadowing the structure will create will fall upon the rear of neighboring structures on the block during midday hours, 2nd Avenue and the city owned parking lot during evening hours and on Holmes St. during morning hours.

The proposed structure appears to not comply with specific conditional standard (B). It is true that the proposal does not meet this standard, but it should be noted that condition standards are not zone sensitive, meaning they are applied for all commercial zoning districts including the Central Business District without regard to the differences between the design or lot standards of specific districts. Central Business zoned parcels are very different in character than any other commercial zones in the city. The lots are much smaller on average and the lot standards are unique to the B3 zone. Requiring condition standard (B) would make this project and most other hypothetical developments in the B3 Zone not feasible and in essence, contradictory to the existing standards of the B3 Zone which permit zero lot line developments with 100% impervious surface coverage and require no building setbacks. This condition would require the buidling to be setback 32 feet from each property line which would in essence eliminate any Staff believes that condition standard B should not weigh heavily in the decision on this Conditional Use Permit request.

Planning staff did receive comments from several reviewing agencies, and have incorporated those comments as conditions of the draft resolution. 

Conditional Use Permit Findings:

Criteria #1       The use will not be injurious to the use and enjoyment of other property in the immediate vicinity for the purposes already permitted, nor substantially diminish and impair property values within the immediate vicinity;

Finding #1:     The Board has not received any evidence that the use will be injurious to the use and enjoyment of other property in the vicinity, if conducted in accordance with proposed conditions. The applicant is requesting to depart beyond the height limitations by ___ feet, which is not a significant amount. The shadow study shows that the project would not cause significant impacts on neighboring properties. The proposed structure will not be setback half of it’s proposed height, but the unique nature of the B-3 Zone, which allows for 0 lot line setbacks and 100% impervious coverage in addition to smaller average lot areas, means this project will not impact other properties in the area negatively and will fit within the character of the downtown area as is intended with the B-3 Zone.

Criteria #2      The amendment of the conditional use will not impede the normal and orderly development and improvement of surrounding vacant property for uses allowed in the area;

Finding #2:     The Board finds that the conditional use permit for an over-height structure will not impede the normal and orderly development and improvement of surrounding property. The addition of new residents, business and parking will enhance neighboring property values and businesses by making downtown a more attractive place to live and visit.

Criteria #3      Adequate utilities, access roads, drainage, and other necessary facilities have been or will be provided; 

Finding#3:      The Board finds that adequate utilities, access, drainage and other necessary facilities have been or will be provided for the site. The applicant will work with Shakopee Public Utilities to make the alterations to the proposed project to incorporate the requirements from SPUC in regard to electric utility accommodation and water service, which will provide adequate water and electricity service for the project site and neighboring properties.

Criteria #4      The use is consistent with the purposes of the zone in which the applicant intends to locate the proposed use; and

Finding #4       The Board finds that this use, a mix of retail and residential, is explicitly permitted in the Downtown Business (B3) Zone and an over-height structure is explicitly listed as a conditional use. The project will not meet one of the condition standards, but that condition standard (B) is overly onerous to the unique conditions which all parcels in the B3 Zone share, that being unique lot standards and much smaller average lot area.

Criteria #5      The use is not in conflict with the Comprehensive Plan.

Finding #5       The Board finds that the use is not in conflict with the Comprehensive Plan. Although the comprehensive plan currently guides this property for institutional uses, which was the guiding based on the previous use of this property as Shakopee City Hall, the draft comprehensive plan, due to be adopted in early 2019, will guide this parcel as Mixed-Use. The existing guiding was based on a previous use of the site, that after the previous city hall was demolished, is not compatible with the B-3 Zone, which sets standards for development more in line with the historical nature of the downtown area. Council did not approve the Comprehensive Plan Amendment reguiding the property to Mixed-Use. The Council will re-vote on this matter at their September 4th meeting, if approved, this project will be in conformance with the Comprehensive Plan and the draft resolution will be modified as is necessary.