Discussion:
The City of Shakopee is proposing an amendment to the Mixed Use land use classification in the 2030 Comprehensive Plan. The proposed amendment would increase the allowed density for parcels guided Mixed Use and also zoned Central Business (B3) from no defined density today to up to 125 dwellings units per acre with specific requirements to reach that maximum density. This reclassification of density will bring existing structures into compliance with permitted density and will allow for the two proposed mixed use projects in the downtown area to move forward.
Residential density levels in the Mixed Use land use classification is not clearly defined nor is it sufficient for redevelopment in parts of the city where it is the most widely used, the downtown area. This is because the lot sizes in this area are generally much smaller than the other areas of the city, meaning projects in this area will still require similar amounts of units to remain financially feasible as other similar projects, but must do so on much smaller plots of land. The 2030 Comp Plan never specified allowed density levels for land guided mixed use, instead only referring to allowed density for residential guided densities. The Met Council has informed city staff that this language is not sufficient for the redevelopment of lots within downtown and that they would not approve permits for projects proposed downtown within the mixed use land use classification until this inconsistency is corrected.
The current highest density allotments in the city is up to 28 units per acre, which is enough for larger apartments built on large plots land, but is insufficient for redevelopment of older smaller lots in the core of the city. For example, the West Vierling Acres apartment project and the Southbridge apartment project both have high unit counts, 133 units and 100 units respectively, but because they are located on larger lots (5.1 acres and 4.5 acres respectively), they are below the permitted maximum density level of 28 units per acre. This is just not possible for the downtown area where a typical block is less than 2 cumulative acres. Redevelopment of these lots has been a priority of the city for some time as was identified in the 2030 Comprehensive Plan and that redevelopment interest is finally beginning to gain steam, as recent proposals have shown, but currently the downtown area does not have sufficient land use guiding to allow these projects.
The amendment to the Comprehensive Plan will create a maximum residential density for the Mixed Use land use classification which currently has no defined number and put that number at 125 units an acre only for parcels which are also zoned Central Business (B-3) District, which is the same amount of units an acre as the draft of the 2040 Comprehensive Plan has identified. As part of the review process for the City Hall site and riverfront redevelopments, the Metropolitan Council has indicated to staff that these proposed projects and in fact many existing structures within the downtown area are not in compliance with the maximum allowed density in the 2030 Comprehensive Plan. The proposal to increase the guided density for Mixed Use classified parcels will only be applicable on parcels which are also located within the Central Business (B-3) zoning district. With this limited scope in place, this amendment will only affect approximately 34 parcels in the downtown area which amounts to approximately 10.4 acres total. A map is provided which indicates which parcels would be affected by these changes. Almost all of the parcels currently are either owned by the city or county, already developed or are the site of one of the two new mixed use proposals at the City Hall site and Riverfront Bluff site.
125 dwelling units per acre may sound like a lot, but two recently approved projects, the City Hall redevelopment and the Gaughan Companies project on the river, both have slightly lower density levels than the proposed 125 units per acre. The City Hall redevelopment would have approximately 122 units per acre in density and the Gaughan Companies project will have 94 units per acre. In addition to the proposed projects, existing buildings already far exceed the current allowed density levels. The two riverfront buildings, Northridge Court and Levee Drive Apartments have high densities; 46 and 66 units per acre, respectively. Both of these buildings are above the highest allowed density of 28 dwelling units an acre. If these projects were proposed today, they could not be built under current city guidelines for allowable density levels.
Housing demand is shifting and it is important for the city to remain desirable for new housing options as they become more in demand, today that demand has shifted toward apartment living and generally smaller living spaces as the city's very low rental vacancy rate indicates. Shakopee has a unique competitive edge in this regard to other similar and neighboring communities, the downtown and riverfront areas. These areas provide certain unique amenities, history and built form, which are not found in most neighboring cities and which developers and residents have begun to find more attractive today than in the past. It is important for the city to capitalize upon this reality and this amendment will serve as the final necessary step to get these projects ready to move forward. The draft 2040 Comprehensive Plan, through its planning and drafting process, has come to a similar conclusion. That conclusion being that increased residential density, in certain targeted areas of the city, will be necessary for Shakopee to remain as desirable a place to live, work and play as it has been in the past.
The following is the criteria evaluated in the granting of a Comprehensive Plan Amendment. The City Council may grant a Comprehensive Plan Amendment when it finds that one or more of the following criteria exists:
Criteria #1 The original zoning ordinance is in error.
Finding #1 The original zoning ordinance is not in error.
Criteria #2 Significant changes in community goals and policies have taken place.
Finding #2 Significant changes in community goals and policies that concern properties with the Mixed Use land use category have taken place. For the city to meet its goals of redevelopment within the downtown area, maximum allowed residential density is required to be increased up to 125 dwelling units per acre.
Criteria #3 Significant changes in development patterns have occurred.
Finding #3 Significant changes in development patterns have occurred for the subject properties. Downtown redevelopment has become more in-demand, but the current maximum allowed density for Mixed Use, 28 dwelling units per acre, is not sufficient for projects on the small parcels found in the downtown area.
Criteria #4 The Comprehensive Plan requires a different provision.
Finding #4 The comprehensive plan for the Mixed Use land use guiding requires amended language. To achieve community goals of redevelopment in the downtown and riverfront area, it is necessary to amend the Mixed Use land use guiding in the 2030 Comprehensive Plan to better define Mixed Use residential densities and to allow for a higher maximum residential density level subject to conditions.
Given the changing circumstances in downtown, staff believes this Amendment meets 3 of the 4 criteria necessary to be approved by the City Council. Attached is the section of the 2030 Comprehensive Plan proposed to be amended with amended language to be added in blue ink. Additionally a map is provided which displays which parcels would be affected by this proposed amendment.