Beacon Interfaith Housing Collaborative, a nonprofit development of multifamily housing based in St. Paul, MN, proposed to construct a 46-unit apartment building at the intersection of 4th Avenue East and Sarazin Street in the City of Shakopee, on the former site of the Knights of Columbus Assembly Hall. The development was given the name Prairie Pointe Apartments. Beacon Interfaith Housing Collaborative was formed in 1999 and currently owns and operates over 700 units of affordable housing in the Twin Cities Metro Area.

Beacon Interfaith Housing Collaborative requested a Planned Unit Development (PUD) designation for the proposed development site, along with combined plat approval and planning commission and city council review. The overall redevelopment split the former Knights of Columbus property into two parts, with the northerly portion (Parcel A) developed by Resonate Church using the existing Knights of Columbus assembly building and the southerly portion (Parcel B) for development by Beacon Interfaith as new multifamily housing. Beacon Interfaith is only requesting PUD designation for the southerly portion of the site that it will develop. Resonate Church was approved separately for  conditional use permit for the northerly parcel as a church.

Beacon proposed building a 3-story structure with pitched roof with a total of total of 90 surface parking spaces, a 1.96 to 1 parking ratio.  Beacon provided 90 spaces, however, 6 of those spaces have a permanent easement to Resonate Church exclusive use, 29 parking spaces shared allowing Resonate exclusive use and 20 spaces shared between Resonate and Beacon.

At the time of approvals, Beacon represented that they and Resonate would be moving forward with their respective projects upon closing and city approvals.  Resonate did close and did receive its Conditional Use Permit and building permits for the conversion of the existing Knights Building.  Beacon did close and file its plat but has not moved forward with its project.

The city is proposing to rezone the Beacon property back to its original B-1 zone.  The project as originally proposed could be built in the B-1 District.  The major change would be moving the building further north since the side yard adjacent to the existing residential in the PUD was 20 feet and would now be 75 feet.  The rear yard in the setback to the existing cemetary would be 30 feet.  The front yard setback would now be 30 feet along Sarazin.  Staff has provided a diagram in the packet to show the existing site plan and the setbacks in B-1.

Beacon applied for the rezoning and Platting during the peak of COVID.  At the time in 2020, Beacon had said that they were not comfortable holding a neighborhood meeting given government guidance and public safety.  During the Public Hearing and at the city council meeting, Beacon was asked to hold a neighborhood meeting to address the neighbors concerns.  Beacon has not held the required neighborhood meeting.  Staff believes that the neighborhood meeting was a requirement of the original rezoning per city code.

151.018 Public Notice, Neighborhood Meetings, Posting Of Signs And Other General Rules

1. Applicability. This section applies to all applications for development approvals and permit requests under this chapter and Chapter 150, unless otherwise stated.
2. Authority to file applications.
1. Applications submitted under this chapter or Chapter 150 may be submitted by the landowner: a person, business, or organization having rights in contract in the land or their authorized agents; the city council; the planning commission: or the city administrator.
2. If the applicant is not the owner of the land, the owner's name and contact information must be included in the application.
3. Neighborhood meeting.
1. A neighborhood meeting is required for the following types of applications if the application also requires a public hearing before either the Planning Commission or the Board of Adjustments and Appeals:
1. Map amendment (rezoning);
2. Preliminary Plat;
3. Conditional Use Permit not related to a single-family home;
4. Comp Plan Amendment;
5. PUD;
6. Zoning Text Amendment;
7. Variance not related to a single-family home.
2. An applicant must conduct the neighborhood meeting before a public hearing is held by the Planning Commission or the Board of Adjustments and Appeals. The Zoning Administrator may waive this requirement in cases where there is no adjacent neighborhood that would be impacted by the application or where the scope of the project has only a minimal impact on the neighborhood.
3. The purpose of the neighborhood meeting is to provide an opportunity for informal communication between applicants, occupants, and owners of nearby properties that might be affected by development proposals; to educate the nearby occupants and owners about the proposed development and application; to receive comments and address concerns about the development proposal; and to resolve conflicts and outstanding issues, where possible.
4. If a neighborhood meeting is required, it should comply with the following procedures:
1. The neighborhood meeting should be held during the hours of 6:00 p.m. to 9:00 p.m., Monday through Friday, at a place that is generally accessible to occupants of property in close proximity to the land subject to the application. Meetings may be held at a time and day different from the above at the neighborhood's request. Meetings shall be held at least eight calendar days before the scheduled public hearing. Failure to do so can result in delay or denial of the application.
2. The applicant shall provide notification of the neighborhood meeting at least seven business days before the date of the meeting by first class mail to: all owners and occupants within 500 feet of the land subject to the application and any neighborhood organization that represents residents within that area. The notification shall state the date, time and place of the meeting.
3. At the neighborhood meeting, the applicant shall explain the development proposal and application; answer questions; and, address the ways in which to resolve the attendees' concerns. Within two days after the meeting, the applicant shall provide the Zoning Administrator with a list of the attendees and a summary of their concerns.

Since the meeting has never been held, staff believes the original rezoning was in error and that the project can be constructed in the B-1 zone.  Changes have been made to the zoning setting design standards and parking separation requirements from residential in B-1 zone, there is no need for the PUD designation. Staff believes that by not holding the required neighborhood meeting, the B-1 zone will still allow a project to be developed.  The Comprehensive Plan shows this area as Mixed Residential, one to four stories, single family, attached single family, townhomes or multifamily.  The density allowed is 6 to 30 units, which the project would meet.  The allowed height is 45 feet.

The conditions for a Planned Unit Development are significant, since PUD are considered under very special circumstances where the community gets an overall better project.  Staff believes that with the current design standards, the project can be delivered under B-1.

151.048 Planned Unit Development District

1.                   Purpose and intent. The purpose of the Planned Unit Development (PUD) District is to provide comprehensive procedures and standards intended to allow more creativity and flexibility in site plan design than would be possible under a conventional zoning district. The decision to zone property to PUD is a public policy decision for the City Council to make in its legislative capacity. The purpose and intent of a PUD is to include most or all of the following:

1. Provide for the establishment of planned unit development (PUD) zoning districts in appropriate settings and situations to create or maintain a development pattern that is consistent with the city's comprehensive plan;
2. Promote a more creative and efficient approach to land use within the city, while at the same time protecting and promoting the health, safety, comfort, aesthetics, economic viability and general welfare of the city;
3. Provide for variations to the strict application of the land use regulations in order to improve site design and operation, while at the same time incorporate design elements that exceed the city's standards to offset the effect of any variations. Desired design elements may include: sustainable design, integration of public art or design elements, greater utilization of new technologies in building design, special construction materials, additional landscaping, creative parking and pedestrian connections, specialty lighting, stormwater management, pedestrian-oriented design or transition to residential neighborhoods, parks or other sensitive uses;
4.  Ensure high quality of design and design compatible with surrounding land uses, including both existing and planned;
5. Maintain or improve the efficiency of public streets and utilities;
6. Preserve and enhance site characteristics, including natural features, wetland protection, trees, open space, scenic views and screening;
7. Allow for mixing of land uses within a development;
8. Encourage a variety of housing types, including affordable housing; and
9. Ensure the establishment of appropriate transitions between differing land uses.

2.                  Applicability/criteria.

1. Uses. All permitted uses, permitted accessory uses, conditional uses and uses allowed by administrative permit contained in the various zoning districts, as defined in this chapter, shall be treated as potentially allowable uses within a PUD district provided they would be allowable on the site under the comprehensive plan.
2. Eligibility standards. To be eligible for a PUD district, all development should be in compliance with the following:
1. Where the site of a proposed PUD is designated for more than one land use in the comprehensive plan, the city may require that the PUD include all the land uses so designated or such combination of the designated uses as the City Council shall deem appropriate to achieve the purposes of this chapter and the comprehensive plan;
2. Any PUD which involves a single land use type or housing type may be permitted, if it is otherwise consistent with the objectives of this chapter and the comprehensive plan and the design substantially exceeds any current standards;
3. Permitted densities may be specifically stated in the appropriate planned development designation and shall be in general conformance with the comprehensive plan; and
4. The setback regulations, parking ratios, building height lot and building coverage ratio of the most closely related conventional zoning district shall be considered presumptively appropriate, but may be departed from to accomplish the purpose and intent described in division (A) of this section.

3.                   Design standards.

1. Generally. The PUD development plan establishes the requirements for a planned unit development and shall govern land uses and design.
1. For a single-family PUD, the applicant must provide house elevations for approval, since the granting of a PUD means exceeding standards, there should be a variety of types and designs. For other PUD types, applicants must provide material boards along with renderings for design evaluation.
2. A planned unit development which includes dwellings, shall provide at least 15% of the project area as open space. If the planned unit development is to be developed in phases, the applicant must include the entire site in the plat of the first phase of development and designate public open space. Open space is a landscaped area or areas available for the common use of and is accessible by all residents or occupants of the buildings within the planned unit development. Open space shall be calculated on a net basis which excludes private yards, private streets from back of curb to back of curb, public rights-of-way, any areas within an easement: or any other non-recreational impervious surface area. Dedicated parkland shall not be used in calculating open space for a development. The applicant shall be required to submit along with the PUD site plan, an open space plan illustrating the use and/or function of the open space area or areas. The open space plan shall include any proposed improvements and/or design of the open space area.
3. Contiguous land. The proposed planned unit development shall be comprised of at least 2 acres of contiguous land.

Criteria for granting a planned unit development application. The City Council shall base its decision to grant or deny an application for a planned unit development upon the following factors, and shall adopt findings relative to these criteria.

1. Is the proposed development consistent in all respects with the comprehensive plan and with this section;
2. Is the proposed development, including deviations from design standards compatible with surrounding land uses;
3. Does the proposed development provide adequate open space, circulation, pedestrian orientation, parking, recreation, screening, and landscaping;
4. If the primary function of the PUD is to encourage development which will preserve and enhance the worthwhile, natural terrain characteristics, it should 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;
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; and/or
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.

1. Criteria for granting a zoning ordinance amendment.
1. The City Council may grant a zoning ordinance amendment when it finds that one or more of the following criteria exists:
1. The original zoning ordinance is in error;
   Staff believes that since a neighborhood meeting was never held, the property should revert to the original B-1 zone and the project could still be constructed with conforming setbacks.
2. Significant changes in community goals and policies have taken place;
   Staff believes that three years have passed since the original approvals and that the goals can be met within the B-1 zone.
3. Significant changes in city-wide or neighborhood development patterns have occurred; or
4. The comprehensive plan requires a different provision.
   There have been changes made to the zoning code that would allow the project to be constructed in the B-1 zone and meet the intentions of the Comprehensive Plan.
2. An amendment involving a planned unit development or a Floodplain Overlay Zone also must meet the criteria set forth below for that zone.