Property Owner: All either owned or under contract to the City of Shakopee EDA

Current Zoning: B-1, Highway Business

Current Guiding: Mixed Use

Proposed Zoning: B-3, Central Business District

Site Acreage:  .4 acre

Number of Parcels: 3

The City of Shakopee is proposing to rezone three properties totaling .4 acres located at the northwest corner of Atwood Street and First Avenue from B-1, Highway Business to B-3, Central Business District for the River Bluff development. A map is attached that shows the specific properties and zoning of surrounding properties. All three properties are guided for mixed use development.

The three properties included in this request are proposed to be part of development of a 5-story mixed use building that includes a restaurant that overlooks the Minnesota River and approximately 175 market-rate apartment units by Gaughan Companies. The project is being redesigned to include these three properties.

The purpose of the proposed rezoning is to allow for a development of apartments that is similar in character to the adjacent buildings to the east of 200 Levee Drive and Northridge Court. The B-1 Highway Business zone has more restrictive design standards for setback and impervious surface that are not conducive to development in a downtown setting.   

The criteria for reviewing rezoning requests are listed below:

Criteria #1:       The original zoning ordinance is in error.

Finding #1       The zoning ordinance is in error. These properties are in close proximity to the downtown area. The Highway Business zone requirements are not conducive to the development of this property.

Criteria #2       Significant changes in community goals and policies have taken place.

Finding #2       Significant changes in community goals and policies that concern these properties have taken place. The current zoning of the subject properties severely limits the ability for it to be developed in a feasible manner that is consistent with the development of the surrounding properties.

Criteria #3       Significant changes in development patterns have occurred.

Finding #3       Significant changes in development patterns have occurred for the subject property. There is an unmet market demand for housing units in the downtown area.

Criteria #4       The Comprehensive Plan requires a different provision.

Finding #4       The proposed zoning of B-3 is consistent with the approved 2030 Comprehensive Plan, and the 2040 Comprehensive Plan which guides this property for mixed use development. The proposed development of the site is commercial and residential.

Staff believes it is appropriate to rezone these properties, as they are adjacent to other B-3 properties. The B-3 zoning district is more conducive to mixed use developments, which is what this property is guided for by the 2030 Comprehensive Plan and in the 2040 Comprehensive Plan. 

Rezoning was recommended for approval 7-0 by the Planning Commission on July 11, 2019.