Site Information
Applicant: D.R. Horton, Inc. - Minnesota
Property Owner: D.R. Horton, Inc. - Minnesota
Location: South of Hwy. 169, west of Marystown Rd. (17th Avenue extended)
Current Zoning: R-1B, R-2, & B-1 Zones

Adjacent Zoning: North: Hwy. 169
South: Urban Residential (R-1B) Zone
East: Highway Business (B-1) Zone/ Urban Residential (R-1B) Zone
West: Highway Business (B-1) Zone
Comp. Plan: Commercial, Medium Density & Single Family Residential
Lot Size: 76.6 Acres

Introduction
D.R. Horton, Inc. - Minnesota has made application to Rezone property to R-1B, R-2, R-4 & B-1; Reguide property to Single Family, Medium Density & High Density Residential, and Commercial; Establish a PUD Overlay District for the proposed mixed use development, and approve the Preliminary Plat of Windermere. The subject property is approximately 77 acres, and is located south of Hwy. 169, west of Marystown Rd., directly west and north/west of 17th Avenue.

Presently, the property is guided as single-family & medium density residential and commercial, and is zoned R-1B, R-2, and B-1. The proposed project area introduces an R-4 (high density residential) element to the project, but overall there are a number of similarities to the previous project that D.R. Horton had submitted in 2008, which was never

developed. Attached to this report is the applicant’s current concept plan for this development, which conceptually shows 197 residential lots, seven (7) commercial lots for future development, and one (1) lot for future multi-family development. Planning staff notes that the 13 single family lots proposed in the southwest segment of this project are acknowledged as future lots, and can not be final platted until such time that development occurs to the south and west of that property. Regarding the multi-family lot, the R-4 zoning district was adopted by the City Council in December of 2015, which would allow (with a density allowance) 14-28 units/acre. No project is proposed for this site at this time, and it will be platted as an outlot until future development proposals are submitted, as will the B-1 commercial outlots. The applicant has provided floor and elevation plans of the proposed single family residences and townhomes for the Council’s information.

This property was part of the West End Study Area, which staff, the public, the Planning Commission and the City Council have reviewed and approved. The submitted Windermere project generally follows the approved plan, particularly concerning the location of commercial, multiple family and single family parcels. The road and trail alignments had to be adjusted from the West End Study due to grading factors, in an effort to bring roads and trails/walks into compliance with City and County design standards, particularly regarding allowed slopes.

Elements of the project that the applicant is asking for specific approval (as part of the PUD) include the following:
1. 7 ½ foot minimum side yard setbacks in single family (R-1B) lots, where 10 feet is the minimum requirement allowed.
2. Density of 10.5 units/acre in the townhome segments, where 8 units/acre is the maximum density allowed in the R-2 Zone.
3. 7-unit townhome buildings, where 6 units is the maximum allowed.
4. 20-foot minimum front yard setbacks for the townhome lots, where 35 feet is the minimum requirement allowed.
5. Any combination of 20 feet between townhome buildings (total), where 10 feet is the minimum side yard setback.
6. Right-of-ways and public streets widths less than the minimum requirements.
7. 25-foot minimum front yard setbacks for the single-family (R-1B) lots, where 30 feet is the minimum requirement allowed.
8. Encroachment into the Bluff Impact Zone.

Considerations:
The City Council may grant a zoning ordinance amendment when it finds that one or more of the following criteria exists:

Criteria #1 That the original Zoning Ordinance is in error;
Finding #1 The original zoning ordinance is not in error; however, the original zoning ordinance established a zoning boundary that is not compatible with the recently approved West End Study Area, which included this development area.

Criteria #2 That significant changes in community goals and policies have taken place;
Finding #2 Significant changes in community goals and policies that concern this property have taken place, as stated at the public meetings during discussion of the West End Study Area. The proposed plan is consistent with the West End Study Area plan approved by City Council in June, 2016.

Criteria #3 That significant changes in City-wide or neighborhood development patterns have occurred; or
Finding #3 Significant changes in development patterns have occurred for the subject property, as referenced in the approved West End Study Area plan.

Criteria #4 That the comprehensive plan requires a different provision.
Finding #4 The comprehensive plan is proposed to be amended to adjust the guiding for this property from Single Family Residential, Medium Density Residential and Commercial; to Single Family, Medium Density & High Density Residential, and Commercial.

The City Code includes criteria for granting a Planned Unit Development (PUD) application. They shall base their decision to grant or deny an application for a PUD upon the following factors, and shall adopt findings relative to these criteria:

Criteria #1: Whether the proposed development is consistent in all respect with the comprehensive plan and with this section.
Finding #1: The use of the property will be in compliance with the proposed Comprehensive Plan Amendment.

Criteria #2: Whether the proposed development, including deviations from design standards of the underlying zones, is compatible with surrounding land uses.
Finding #2: The proposed deviations relating to setbacks for the residential lots, increase in density and number of units per building of the townhouse neighborhoods, minimal impact to a degraded bluff, and reduction in street widths of the townhouse neighborhoods are in keeping with the character of the previously approved project. This project is generally consistent with the West End Study Plan approved by the City Council in June, 2016.

Criteria #3: Whether the proposed development, including deviations from development standards of the underlying zone, provides adequate open space, circulation, parking, recreation, screening, and landscaping.
Finding #3: The proposed project will be providing a significant number of trails, park land and open space, with connections set up to tie into future adjacent developments. No changes are proposed in regard to landscaping, open space, or screening. A number of the proposed deviations from development standards are to allow for a better trail and open space network.

Criteria #4: Whether the primary function of the PUD is to encourage development which will preserve and enhance the worthwhile, natural terrain characteristics and not force intense development to utilize all portions of a given site in order to arrive at the maximum density allowed. In evaluating each individual proposal, the recognition of this objective will be a basic consideration in granting approval or denial.
Finding #4: The proposed development will preserve and enhance the worthwhile, natural terrain characteristics and not force intense development to utilize all portions of the site in order to arrive at the maximum density allowed.

Criteria #5: Whether there exists an overall compatibility of land uses and overall appearance and compatibility of individual buildings to other site elements or to surrounding development. However, the architectural style of buildings shall not solely be a basis for denial or approval of a plan.
Finding #5: The ultimate development of the PUD will provide for overall compatibility of land uses, buildings, and other site elements to the surrounding development. The proposed development will generally be similar in architectural style to the surrounding properties and will be compatible with the surrounding land uses.

Criteria #6: Whether the proposed PUD plan would afford a greater general public benefit than would be realized under the underlying zoning district and/or general zoning provisions.
Finding # 6: The proposed PUD allows for the flexibility to develop a creative site plan for a site with significant development challenges related to topography and street connections. The proposed PUD also allows for adequate pedestrian circulation to connect to the adjacent residential and park areas. The proposed development will afford a greater general public benefit than would be realized under the underlying zoning district and/or general zoning provisions.

Staff believe revising the zoning for this property meets more than one of the criteria. As part of the West End Study review, planning staff, the city's consultant, and the City Council all found that additional commercial areas are needed in this area and that city-wide goals have changed since the last comprehensive plan. This parcel was selected as a site for additional commercial & multi-family residential development. Additionally, there was support for an extensive trail network that will make use of the exceptional natural resources of this area, and will establish a framework for connectivity between the residential neighborhoods and the commercial properties.

Staff, the applicant and outside agencies have spent considerable time reviewing and discussing this submittal. Several review agencies (City Engineering, Natural Resources and Parks & Recreation, SPUC, Scott County, and MnDOT) have provided comments and the applicant is working with the agencies to address their comments. The 8 (eight) elements that the developer is asking for approval as part of the PUD (noted above) do not create a hardship on the City and County long range plans for this area nor create a hardship on the specific neighborhoods of this development; therefore, there is support for granting approval of their requests.