Discussion:
The City of Shakopee is proposing a map and text amendment to the 2030 Comprehensive Plan to create a new "Downtown Mixed Use" classification and reguide six properties which amount to a total of ten parcels. These parcels all either already have existing developments on it which today do not conform to the Comprehensive Plan or have active proposals which have been approved aside from this issue. The purpose of this amendment is to reguide a select amount of properties to allow for an increase in the maximum amount of allowed residential density. The new land use category would be for all intents and purposes the same as the existing "Mixed Use" classification except that it will allow for the increased level of residential density, 125 dwelling units per acre, in a much more focused way then the previous amendment proposal which would have altered language within the broader Mixed Use classification. By creating this new category and only reguiding parcels which will need to be reguided, whether retroactively for existing developments in the downtown area or for new proposed projects, this will limit any unforeseen effects on any other parcels in the area. Land guided Mixed Use and not included in this reguiding will remain with the same designation and would not be affected by this proposed amendment.
The residential density level 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 maximum residential 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. This proposed amendment will correct this inconsistency by creating a new land use classification which will allow for residential density up to 125 dwelling units per acre for the existing non conforming parcels and for the proposed developments in the Downtown District.
The current maximum residential density allowed in the city is up to 28 dwelling 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 and potential project sites are smaller still. The proposed projects downtown will have similar unit counts to the previously identified projects, but because they will be on a more confined space their density levels are much higher. 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.
This amendment will both be a text amendment; to add a new classification under the Downtown District "Downtown Mixed Use" and language to that effect, and a map amendment to reguide a select number of parcels to the new classification, which will allow for up to 125 dwelling units per acre. This change will help to bring existing structures into conformance and allow for otherwise approved projects to move forward. The existing developments which are currently non conforming are; 200 Levee Drive, Northridge Court and RiverCity Center. The proposed projects are at the former city hall site and the Riverbluff Apartments. Following feedback from Council, this amendment is designed to be limited to the exact parcels that are needed to be amended and not open up potential for higher density structures to be built elsewhere in the Downtown District without a separate hearing and approval of a comprehensive plan amendment, which following December 31st, will no longer be possible for the 2030 Comprehensive Plan.
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 is shifting toward apartment living and generally smaller living spaces with a desire for walkable amenity rich neighborhoods. Shakopee has a unique competitive edge in this regard to other similar and neighboring communities; that edge being the Downtown District. This area provides certain unique amenities, history and built form, which are not found in many similar suburban cities and which developers and residents find attractive; as can be seen by the recent proposals for this area and a general revitalization of the are that has occurred over the past decade.
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. However the original Land Use Classification was in error for multiple properties within the Downtown District. This Amendment remedies this 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 within the Downtown District have taken place. For the city to meet its stated goals of redevelopment within the Downtown District, maximum allowed residential density is needed 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 in the city, 28 dwelling units per acre, is not sufficient for projects located on small parcels found in the downtown area.
Criteria #4 The Comprehensive Plan requires a different provision.
Finding #4 The comprehensive plan for the Downtown District requires amended language. To achieve community goals of redevelopment in the downtown and riverfront area, it is necessary to amend the 2030 Comprehensive Plan to create an additional land use classification, Downtown Mixed Use and to reguide specific properties within the Downtown District to both retroactively bring existing developments into conformance and to allow for proposed mixed use development to occur.
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 new language to be added to the 2030 Comprehensive Plan and the amended land use table. Additionally a map is provided which displays which parcels would be reguided by this proposed amendment.