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Planning Commission - 10/23/2017 APPROVED MINUTES EDEN PRAIRIE PLANNING COMMISSION MONDAY, OCTOBER 23, 2017 7:00 P.M., CITY CENTER Council Chambers 8080 Mitchell Road COMMISSION MEMBERS: John Kirk, Travis Wuttke, Ann Higgins, Charles Weber, Andrew Pieper, Ed Farr, Mark Freiberg, Michael DeSanctis, Christopher Villarreal CITY STAFF: Julie Klima, City Planner Rod Rue, City Engineer Matt Bourne, Manager of Parks and Natural Resources Julie Krull, Recording Secretary I. CALL THE MEETING TO ORDER Chair Pieper called the meeting to order at 7:00 p.m. II. PLEDGE OF ALLEGIANCE—ROLL CALL Kirk, Weber and Wuttke were absent. IIII. APPROVAL OF AGENDA MOTION: Higgins moved, seconded by DeSanctis, to approve the agenda. Motion carried 6-0. IV. MINUTES A. PLANNING COMMISSION MEETING HELD MONDAY, OCTOBER 9, 2017 MOTION: Higgins moved, seconded by DeSanctis, to approve the minutes dated October 9, 2017. Motion carried 6-0. V. INFORMATIONAL MEETINGS VI. PUBLIC MEETINGS VII. PUBLIC HEARINGS A. CODE AMENDMENT- SELF STORAGE FACILITIES (CONT. ITEM) PLANNING COMMISSION MINUTES October 23, 2017 Page 2 Request to: • Amend City Code, Chapter 11 related to self-storage facilities. Klima said this is a continued item from the September 11, 2017 Planning Commission meeting. City Staff has provided additional information in the staff report in regards to zoning districts, architectural standards/process, and economics. The zoning districts were broken down with these three in the industrial districts; I- GEN— 57.3 acres, I-5 —373.4 acres, I-2— 897.8 acres. The Commercial Districts (excluding TOD/TC) are on 644.1 acres for a total of 1,328.5 acres. The current self-storage facilities in Eden Prairie provide 2000 units on 19.95 acres. In the Industrial and Commercial districts,buildings are required to have 75% Class I material and 25% Class II materials. According to on-line research the self-storage industry standard is to have secured property and secured access generally by electronic means. Eden Prairie's City Code does not utilize Conditional Use Permits but historically have used the Planned Unit Development process and Development Agreements to accomplish similar goals and outcomes. Staff recommendation is for approval of this amendment. Freiberg addressed the letter in the packet from Robert Hellman and said the comment of making the four existing storage properties non-conforming will affect the possibility of expansion in the future as well as the ability to refinance, insure, rebuild after a calamity, and remodel the properties. Freiberg pointed out this could be a road block for storage facilities. Klima said if the code amendment were to be approved, the existing uses would become non-conforming and would be able to be maintained but not to be able to expand. In regards to refinancing, the financial institution would reach out to the City for a zoning verification letter. Freiberg asked about insurability. Klima said the City would also issue a zoning verification letter. Chair Pieper asked if these units could be sold. Klima said these units could be sold. Farr asked if refinancing and insuring would be more expensive for non- conforming uses. Klima said she cannot answer that question as the City does not specifically get involved in that. Chair Pieper asked if the Commission talked about architectural standards at the last meeting. Farr said he recalled the discussion was some of the Commissioners thought the units would be considered more of a commercial use than an industrial use. He said in regards to a public safety point, the Commercial district would provide increased safety due to lighting and a more populated area. He said he can understand the City's position on this but is torn why this is getting pushed towards a district that is generally unused after hours. Higgins said when she lived in Minneapolis there was a storage facility located around the Hiawatha area and activity seemed to be not only between 8 am—5 pm,but after hours and pointed out that being on a busy street would make it safer after hours. Freiberg commented when looking at what the City has for acreage for Commercial districts it is 644 acres, which is not much. In looking at the other three districts there is 1328 acres. Because of the low acreage, the highest and best use of acreage for Commercial PLANNING COMMISSION MINUTES October 23, 2017 Page 3 districts is very important. Klima said the industry standard is to have a secure access to these storage units for the customer so they have safe access in and out of the facility. Farr said this whole industry is evolving and is evident with one of the four storage facilities across from Home Depot. He said they are looking for well-lit, well- traveled sites. He pointed out if there is a demand for these facilities they would likely not be pushed into the I-Gen District. The I-2 District looks to be generous and may be an option for new facilities. He asked if two of the facilities are located in the Golden Triangle area. Klima said two facilities are in the Golden Triangle area. Farr responded by stating there is plenty of room there for everyone. Chair Pieper asked Farr to expand on that. Farr stated because I-Gen is too limiting he would like to see I-2 added to the list of districts for permitted use or to establish conditional use permits as other cities have done. Chair Pieper asked Klima how Staff arrived at recommending I-Gen and if there was a discussion whether I-2 or I-5 would be included. Klima referred to the graphics that were attached in the staff report, noting the I-2 and I-5,primarily I-2, because there are a lot more properties zoned this, are areas the City expects more re-development and re-investing in those properties. Self-storage units are more of a low intensity use with regards to employment and other features; there is not a lot of pedestrian connection or activity associated with self-storage facilities. The City's vision for the Golden Triangle area is for it to be a more vibrant, active area. Villarreal said he agrees with what Farr said about markets and feels the Commission cannot really discuss the need for these facilities today and lumping them in a small box is limiting. He is comfortable expanding these units past I-Gen. Chair Pieper asked if Villarreal would like I-2, I-5 and the Commercial districts added in. Villarreal said he is not comfortable limiting the potential to just certain areas of the City, it should be based on the need of residential or commercial customers. Freiberg commented the City has a finite amount of land and when the light rail comes through, there may pressures regarding affordable housing. He pointed out the City is way off of where it should be for affordable housing for the needs in 2020 and said if the City limits itself with land available for redevelopment, the Commission's decisions are going to get tougher and tougher down the road. DeSanctis said the idea of vertical structures having their own storage units included maybe is something the City can require of potential developers. He agrees the City has a limited amount of land to be re-developed and does not want the self-storage facility to get in the way of affordable housing. Chair Pieper asked Freiberg if he sees affordable housing being built in the I-2 or I-5 district. Freiberg said he was looking at the I-2 district, there are 897 acres in the Golden Triangle area. The I-Gen and I-5 are of less importance because there would be some flexibility retained. PLANNING COMMISSION MINUTES October 23, 2017 Page 4 Farr commented in regard to the Commissioner DeSanctis' point, the lower income housing solutions and smaller units Eden Prairie will be building in the future will be pressured to minimize things like storage units for residents just because of market pressures. Farr said the demand for self-storage will be going up versus down and residents would want the facilities closer to where they live. It would be difficult to regulate the amount of storage built into vertical residential projects, as there would be push back from the developers. Self-storage facilities will be market driven. Chair Pieper commented he believes this use is typically driven to lower costs of land rather than to TOD areas Chair Pieper opened the meeting up for public input. There was no input. Farr said he would like to discuss alternatives for action on this item. MOTION: Villarreal moved, seconded by DeSanctis, to close the public hearing. Motion carried 6-0. Klima said, in regards to alternatives, listed in the staff report is recommendation for the approval for the text amendment as presented. The Commission can recommend an alternative to the City Council. Chair Pieper asked if the Planning Commission did not approve this code amendment would it still go to City Council. Klima said if the Planning Commission recommended denial, it would still move forward to the City Council for their review. Farr asked if this code amendment goes through tonight, what would happen if an applicant would like to develop a self-storage facility in a Commercial district what would be the process for this applicant to get this project approved in a district that does not have an approved use. Klima asked clarification if the scenario proposed is if the code amendment is approved as presented by Staff. Farr stated that was correct. Klima said if Staff receives an inquiry for property that is zoned commercial staff would educate the applicant that it is not an approved use in Commercial districts but are in the I-Gen district and Staff would educate them where those properties are located. If a potential applicant still wanted to pursue that location, they would put in a request in a form of a text amendment to allow the use in a Commercial district. Farr questioned if that would be a variance request. Klima responded a variance request is applicable when the use is allowed by code but the standards cannot be reasonably met. Farr said in regards to recommendation for denial,he would like to discuss if that is what the Commission would want to move forward with or if there are additional thoughts. He said he is in favor of denial and hopeful this could be allowed in other PLANNING COMMISSION MINUTES October 23, 2017 Page 5 districts. Chair Pieper asked if he is proposing making a recommendation to Staff. Farr said he would like to see what other Commissioners are thinking. He commented he is not sure if this is opened up to other zoning districts how much direction should be provided or if the Commission would have to get in depth about other Commercial districts and feels the Commission is not in a position to do that right now. It may be easier to chip into the I-2 district. Klima said there is nothing to prevent the Planning Commission from making a recommendation to the City Council in regards to what the Planning Commission would support. Klima said there are three options the Planning Commission could move on tonight. There could be approval with modifications, approval as Staff recommended, or denial. Freiberg stated he would go along with I-Gen and I-5, but he believes including the I-2 district could come back and haunt the City. He clarified he is in favor of excluding I-2 and approve I-Gen and I-5. DeSanctis said he approves I-Gen and I-5 as well. Villarreal said his preference would be to include I-Gen, I-5, I-2 and Commercial districts. Higgins said I-Gen and I-5 would be what she would approve. DeSanctis asked, in respect to the Commercial Zoning districts, if a developer comes along and wants to develop a facility nested in a larger structure does that fall within this ordinance or is that a separate variance. If you extent self-storage to a commercial zoned area it would be a second use within that residential area. Klima said in Commercial districts, residential uses are not permitted uses within those zoning districts, so she would not envision a scenario where an apartment facility had a commercial storage facility nested within it. Any storage facility would be a resident amenity in that case. Villarreal asked if there was a mixed-use facility what gets determined if it is residential or commercial. Klima said if there is a vertically mixed-use project they would take a look at the zoning districts that they have to regulate them, like TOD or the Town Center district and look at the comprehensive plan and work with the developer as to which zoning district would fit the need of the project. Villarreal asked if a mixed-use residential/commercial development that was mostly commercial,how it would work if the storage facility would be inside of the building and asked if it would be allowed. Klima said what is presented tonight is to address third party storage facilities and not storage facilities provided as an amenity within a residential project. Chair Pieper asked what direction Villarreal is leaning towards. Villarreal said his preference would be to have storage areas be applicable to I-Gen, I-2, I-5 and commercial. Farr said he agrees with Villarreal because of the evolution of product and demand for residents. Chair Pieper said he would like to see the market dictate this. Chair Pieper asked what happens if there is a tie. Klima stated if a motion and PLANNING COMMISSION MINUTES October 23, 2017 Page 6 vote should be taken now and if it is a tie, that motion does not pass. The Commission could try an alternative motion to see if it does pass or a tie can be forwarded to City Council with explanation. MOTION: Villarreal moved, seconded by Farr, to recommend approval of the amendment of the City Code, Chapter 11, related to self-storage facilities based on information included in the staff reports dated September 6, 2017 and its attachments and October 18, 2017 and its attachments, with additional recommendation to include self-storage in districts I-Gen, I-2, I-5 and Commercial. Motion carried 4-2, with Freiberg and Higgins opposing. B. CODE AMENDMENT- CONDITIONAL USE PERMITS Request to: • Amend City Code, Chapter 11 related to conditional use permits. Klima stated back in May of 2017, the Minnesota State Legislature adopted a state law relating to siting of small wireless telecommunication facilities in public rights- of-way. The new law grants wireless providers the ability to locate their facilities as a permitted use in the right-or-way, except that a City may require a conditional use permit to install structures in single family residential zoning districts. Because this is a new provision in the state law, the Zoning Ordinance needs to be amended to align with the new State regulations. City Staff has worked with the City Attorney to draft the code amendments that are included in the staff report. The proposed code amendments include revisions to the following: • Section 11.02 (Definitions) to align City Code definitions with those used in state law regarding wireless communication services and equipment; • Section 11.03, Subd.3 (Special Requirements) and Subd. 6 (Site Plan and Architectural Design Review) to include references to wireless services; • Section 11.06 (Towers and Antennas) to clarify that facilities may be subject to review of a Conditional Use Permit; and • Section 11.41 (Conditional Use permits) to establish wireless support structures as a conditional use and eliminate Major Center Area as a conditional use category. The Major Center Area conditional use permit category was established to address the transition of uses from residential to those consistent with the Major Center Area plan. Due to development that has occurred over time within the designated areas, the provision for Major Center Area CUP'S is no longer applicable and staff proposes to strike the correspond language. Section 11.41 also includes housekeeping amendments to address the duration of conditional use permits. Current language provides for an approval period of 5 years. The proposed language allows for conditional use permits to remain in effect so long as the conditions of approval are adhered to and provides for the opportunity for the City to review as necessary. Staff recommendation is for approval. PLANNING COMMISSION MINUTES October 23, 2017 Page 7 Higgins asked if the City has heard from wireless companies. Klima said no specific applications have come in. Farr asked if the towers can be shared and if the City is promoting that. Klima said the City does encourage colocation. Villarreal asked if removal of references for telecommunication services would create a risk to expand services to other public utilities, like Xcel or CenterPoint Energy. Klima said Staff had that conversation with the City Attorney and their recommendation is that the City is adequately protected by term wireless. Villarreal commented he sees a gap with that. Klima said City Staff can reach back to the City Attorney with concerns. Farr said he had a question on page 40, Subd. 3, paragraph B, titled Wireless Support Structures, Subd. 1, and asked what is a public utility structure. He also stated, in regards to Subd. 5, this could be challenging for buildings that produce a lot of heat and would like condensers on ground level. Klima said the City only has the right to regulate the uses through CUP's in the R1 Districts. In Subd. 1, the City is just limiting the amount of facilities within these areas to address aesthetics. Klima said public utility structures are defined as a pole or structure for transmission of data or electricity. Rue said the technology for small cell wireless is different. They are very small and located in a small canister and located about every thousand feet to fill in for the large towers. They are located on city street lights. The City's existing ordinances do have size requirements and these are secondary to the large towers. Villarreal asked how these support structures are powered. Rue said they are wired directly with a meter running up the pole. Villarreal asked if there is a backup need for these structures if the power goes out. Rue said he is not exactly sure how they are powered and cannot answer the backup question. Klima said staff can follow up further on this issue. Chair Pieper opened the meeting up for public input. There was no input. MOTION: Farr moved, seconded by Freiberg, to close the public hearing. Motion carried 6-0. MOTION: Farr moved, seconded by DeSanctis, to recommend approval to amend City Code, Chapter 11,related to Conditional Use Permits and wireless facilities based on the information included in the staff report dated October 19, 2017 and its attachments. Motion carried 6-0. VIII. PLANNERS' REPORT A. COUNCIL WORK SESSION DECEMBER 12, 2017—ASPIRE PLANNING COMMISSION MINUTES October 23, 2017 Page 8 Klima stated the City Council will be hosting a work session on December 12, 2017 to discuss Aspire Eden Prairie 2040. The Planning Commission is invited to attend. IX. MEMBERS' REPORT X. CONTINUING BUSINESS XI. NEW BUSINESS XII. ADJOURNMENT MOTION: Villarreal moved, seconded by DeSanctis, to adjourn the Planning Commission meeting. Motion carried 6-0. Chair Pieper adjourned the meeting at 8:15 p.m.