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PLA 08/19/2020 FRIDLEY PLANNING COMMISSION WEDNESDAY, AUGUST 19, 2020 7:00 P.M. AGENDA CALL TO ORDER ROLL CALL APPROVE PLANNING COMMISSION MEETING MINUTES: JULY 15, 2020 PUBLIC HEARING: 1.Consideration of a Rezoning, ZOA #20-01, by Roers Fridley Apartments Owner LLC, to have the property at 6530 University Avenue rezoned from C-3, General Shopping to S-2, Redevelopment District to allow for the construction of a multi- family rental housing building and a stand-alone commercial building. 2.Consideration of a Plat, PS #20-03, by Roers Fridley Apartments Owner LLC, to replat the property at 6530 University Avenue to create (2) new lots to allow for the redevelopment of the property. ACCEPTANCE OF MINUTES FROM OTHER COMMISSIONS – THROUGH ONE MOTION Motion to accept the minutes from the following Commission meetings: 1.June 9, 2020, Environment Quality & Energy Commission 2.June 1, 2020, Parks & Recreation Commission 3.June 4, 2020, Housing & Redvelopment Authority Commission OTHER BUSINESS: ADJOURN N EXT P LANNING C OMMISSION M EETING D ATE: SEPTEMBER 16, 2020 FRIDLEY PLANNING COMMISSION-via Zoom WEDNESDAY, JULY 15, 2020 7:00 P.M. FRIDLEY CIVIC CAMPUS, COUNCIL CHAMBERS 7071 UNIVERSITY AVENUE N.E. CALL TO ORDER Chairperson Kondrick called the Planning Commission Meeting to order at 7:00 p.m. ROLL CALL PRESENT: David Kondrick, Mark Hansen, Ryan Evanson, Brad Sielaff, and Terry McClellan ABSENT: Mike Heintz OTHERS PRESENT: Stacy Stromberg, Planning Manger Mark Krogh, 6290 Highway 65 LLC th Dave Brown, 1040 – 64 Avenue APPROVE MINUTES May 20, 2020 Motion by Commissioner Evanson to approve the minutes. Seconded by Commissioner McClellan. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON KONDRICK DECLARED THE MOTION CARRIED UNANIMOUSLY. PUBLIC HEARING: 1.Consideration of a Plat, PS #20-01, by Java companies, to replat the properties at 6290 and 6310 Highway 65 to provide additional land to the vacant parcel at 6290 Highway 65, to allow for the construction of a Caribou Coffee Cabin. Motion by Commissioner Hanson to open the public hearing. Seconded by Commissioner McClellan. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON KONDRICK DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING WAS OPENED AT 7:02 P.M. Stacy Stromberg, Planning Manager, stated the petitioner, Mark Krogh of Java Properties, is requesting to have the properties at 6290 and 6310 Highway 65 NE replatted which will provide the additional land area needed for 6290 Highway 65 NE to be developed. Fridley Planning Commission Meeting July 15, 2020 Page 2 of 7 Ms. Stromberg stated the petitioner plans to develop the land by constructing a Caribou Coffee Cabin. This Caribou will have no interior seating; however, there will be a drive- thru and a walk-up window to serve guests. An outdoor patio with tables will also be on site to encourage patrons to stay and enjoy their beverage. Of note: A Caribou Coffee Cabin like the one proposed in this request is already under construction at 8094 University Avenue, the former Midas property. Ms. Stromberg stated the C-3, General Shopping zoning district requires a minimum lot size of 35,000 square feet. To meet this lot size requirement, the petitioner is requesting this replat. The replat will combine the vacant parcel at 6290 Hwy 65 with the vacant parcel to the west and an 18-foot by 232-foot strip of land lying north of the vacant two properties. This strip of land is owned by Asset Properties LLC and is occupied by Banquets of Minnesota. After the replat, the new lot will be 35,237 square feet, which meets the 35,000 square feet minimum required by code. The Banquets of Minnesota lot size will be reduced by 4,176 square feet and will be 143,928 (3.3 acres) in size. Ms. Stromberg stated the Planning Commission will recall that this project also received a variance to reduce the front yard setback. The City Council approved that variance at their June 8, 2020 meeting. Ms. Stromberg stated City Staff recommends approval of this preliminary plat request as replatting the property will create two conforming commercial parcels and will allow for the development of 6290 Highway 65 NE. Chairperson Kondrick stated the petitioner was interested in getting that other piece of property, part of the parking lot, from the other business to the north. The 18-foot strip. Ms. Stromberg stated, yes, it is 18 feet by 232 feet. Chairperson Kondrick asked why was that crucial for him to get? Is it for turnaround space or what was the reason for him being interested in that? Ms. Stromberg replied, he needed it to create a lot that is 35,000 square feet which meets the minimum. Chairperson Kondrick stated he has no questions. It seems clear cut to him. Commissioner McClellan stated he thinks it was covered at the last meeting that this 18 feet was going to be needed to develop the site. Fridley Planning Commission Meeting July 15, 2020 Page 3 of 7 Commissioner Sielaff asked if there is something they can do as far as stop signs, speed bumps, etc.? Commissioner Evanson stated he thinks Commissioner Sielaff is referring to a letter that came from someone in the neighborhood, and the Commission hasn’t discussed that yet. At this point they have been discussing the petitioner having to acquire the property from Banquets. They should discuss that letter as well but at this point he does not have any questions about the replat request. Chairperson Kondrick asked Ms. Stromberg if she had a copy of the letter? Ms. Stromberg replied, she did have a copy of the letter from Dave and Cheri Brown. She e-mailed it to the Commission this afternoon and stated it should be received into the record. They seem that they are in favor of the project and would like to see the redevelopment, but they do have concerns about potential traffic into their neighborhood on the north. That is their main concern, and they provided some ideas for the Council or Commission to investigate to help alleviate potential traffic. Commissioner McClellan stated that does not necessarily have any bearing on the replatting. Commissioner Hansen stated he agrees. Those are items the City can follow up separately on. Chairperson Kondrick stated he agreed. Commissioner Evanson stated it looks like they are referring to truck traffic which pertains more to Banquets. A few years ago, he worked with a business in Fridley, and they had large commercial trucks that would come through a residential neighborhood. As business owners they said, please do not drive your truck on this street; route this way. The solution to the letter may be to direct the trucks to exit and enter onto Highway 65. Chairperson Kondrick stated that problem can easily be rectified by proper communication and some simple adjustments. Commissioner Evanson stated he thinks so. It is something the Commission should be mindful of, and he wants to add it to the record. At the same time, he does not think it would change his opinion whether they should go forward with this. It is good to hear that there is maybe another issue that frankly is more Banquets’ issue than Caribou’s. Chairperson Kondrick asked Ms. Stromberg if she had their address? Fridley Planning Commission Meeting July 15, 2020 Page 4 of 7 th Ms. Stromberg replied, it is 1040 – 64 Avenue and Dave and Cheri Brown. Motion by Commissioner Sielaff accepting the letter of interest from Dave and Cheri Brown. Seconded by Commissioner Evanson. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON KONDRICK DECLARED THE MOTION CARRIED UNANIMOUSLY. Chairperson Kondrick asked the petitioner, Mr. Krogh, if he had anything to add? Mark Krough, 6290 Highway 65 LLC, replied the purpose of the replat was to create 35,000 square feet so they can do the development. They are ready to move forward. Chairperson Kondrick asked Mr. Krogh but he has no problems with what they have been talking with here? Mr. Krogh replied to the north is the Banquet Hall and they don’t anticipate traffic from Caribou to go north. They can further address it offline with City staff. Commissioner Hansen asked Mr. Krogh whether the majority of the traffic is going to be going southbound? Mr. Krogh stated that is why they are developing the lot, because this side of Hwy 65 is critical. Grab your coffee and go to work, most of the traffic is in the morning. Commissioner Sielaff asked Mr. Krogh whether they are just going to have coffee, or will they have anything like sandwiches, etc.? Mr. Krogh replied, they will have the full menu of Caribou. Sandwiches, pastries, etc. Commissioner Evanson asked Mr. Krogh he is just dealing with the real estate portion of this? The operating company is still going to be Caribou corporate. They will control the menu and all of that, is that correct? Mr. Krogh replied, yes, he is just the developer. Ms. Stromberg stated she was able to talk to the Director of Public Safety, Brian Weierke, today and the Director of Public Works, Jim Kosluchar about Mr. and Mrs. Brown’s letter. They said that generally they have not heard a lot of complaints or concerns from this neighborhood before, but they are certainly willing to put in one of those speed trackers Fridley Planning Commission Meeting July 15, 2020 Page 5 of 7 to help address the neighbors’ concerns. If it is warranted after that they can do some traffic counts, predevelopment, and post-development, and ask for Caribou’s assistance in that. However, this is the first time they had heard about this, but they said they would be willing to do whatever they could to make sure the neighborhood was okay. th Dave Brown, 1040 – 64 Avenue, stated he just wanted to clarify it is not just the semi- trucks that are going through. It is used as a short cut off of Mississippi Street by people going off to work on Central Avenue or they will come through on Taylor and come th through on Baker, then they come down 64 to come around the curve. The stop sign that is at Banquets going south is by the building. If you are stopped at the stop sign there, you do not see anyone coming out of Banquets; and you must inch up there to see if anybody is coming out of Banquets. It is just a concern that there is going to be more traffic coming through with the addition of Caribou. He is a Caribou fan, but they have noticed an increase in traffic with people using this short cut, therefore he gave some options with his letter. He thought this would be a good place to start. Economic growth is a great thing for Fridley. He just wanted to make all of them aware of the problems they have seen as residents and their neighbors. Chairperson Kondrick stated to Mr. Brown his letter of course will be forwarded to the City Council for their review. Motion by Commissioner Evanson to close the public hearing. Seconded by Commissioner Hansen. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON KONDRICK DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING WAS CLOSED AT 7:20 P.M. Motion by Commissioner Evanson approving Plat, PS #20-01, by Java companies, to replat the properties at 6290 and 6310 Highway 65 to provide additional land to the vacant parcel at 6290 Highway 65, to allow for the construction of a Caribou Coffee Cabin. Seconded by Commissioner McClellan. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON KONDRICK DECLARED THE MOTION CARRIED UNANIMOUSLY. ACCEPTANCE OF MINUTES FROM OTHER COMMISSIONS – THROUGH ONE MOTION: Motion to accept the minutes from the following Commission meetings: 1. March 10, 2020, Environment Quality & Energy Commission Fridley Planning Commission Meeting July 15, 2020 Page 6 of 7 2. March 5, 2020, Housing and Redevelopment Authority Commission 3. May 7, 2020, Housing and Redevelopment Authority Commission Motion by Commissioner Hansen to accept the minutes. Seconded by Commissioner Evanson. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON KONDRICK DECLARED THE MOTION CARRIED UNANIMOUSLY. OTHER BUSINESS: 1.Elect Chair and Vice Chair Chair Kondrick stated that he’s been doing the chair position for a while, he doesn’t mind doing it and would like to continue to do it, if the Commission thinks it’s a good idea. Motion by Commissioner Sielaff for Chairperson Kondrick to continue being the Chair. Seconded by Commissioner Hansen. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON KONDRICK DECLARED THE MOTION CARRIED UNANIMOUSLY. Chair Kondrick stated that the person, LeRoy Oquist, that has been the Vice-Chair position for a number of years, has decided to retire. He’s a very smart, bright and competent individual, so we need to find a new Vice-Chair. He would like to nominate Mark Hansen for this job. He is smart, on-time, aware of what is going on in the City and think he’d be a good Vice-Chair. Commission McClellan stated he agrees. He likes the idea of having someone who may have a longer tenure on the Commission. Commissioner Evanson stated, he agrees. Commission Sielaff stated, he would second the nomination. Motion by Chairperson Kondrick nominating Chairperson Hansen as Vice Chair. Seconded by Commissioner Sielaff. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON KONDRICK DECLARED THE MOTION CARRIED UNANIMOUSLY. OTHER BUSINESS: Fridley Planning Commission Meeting July 15, 2020 Page 7 of 7 th Ms. Stromberg stated Mr. Oquist couldn’t join us tonight and he retired as of July 10. She wanted to acknowledge that he served on a Commission with the City for 46 years, which is quite a milestone and he needs to be congratulated. Commissioner McClellan stated congratulations to him and the City is better for his dedication. Ms. Stromberg stated the next meeting will be August 19, 2020. Commissioner McClellan asked for any update regarding the old City Hall site. Ms. Stromberg replied, they have issued the building permit just this week. It will be happening sooner than later. There was some back and forth with Fairview related to the parking lots and ownership of those lots; but it will be closing soon so they should see construction start soon. Commissioner Sielaff asked whether they are going to be using those underground garages? Ms. Stromberg replied, they are. They are going to use them for storage or maybe a wood shop or something for the residents of the assisted living facility. They thought they could utilize them. ADJOURN: Motion by Commissioner Hansen to adjourn the meeting. Seconded by Commissioner Evanson. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON KONDRICK DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE MEETING ADJOURNED AT 7:35 P.M. Respectfully submitted, Denise M. Johnson Recording Secretary City of Fridley Land Use Application ZOA #20-01 and PS #20-03 August 19, 2020 GENERAL INFORMATION SPECIAL INFORMATION Applicant: Physical Characteristics: Roers Fridley Apartments Owner LLC Flat lot with the Holly Center building and large Shane LaFave parking lot 110 Cheshire Lane #120 SUMMARY OF REQUEST Minnetonka MN 55305 The petitioner,Shane LaFave of Roers Companies, is requesting to have the property Requested Action: located at 6530 University Avenue rezoned from Rezoning from C-3 to S-2 C-3, General Shopping to S-2, Redevelopment Plat to create 2 lots District to allow for the construction of new Location: multi-family rental housing development and a 6530 University Avenue free-standing commercial building. The Existing Zoning: petitioner is also requesting to have the C-3, General Shopping property replatted to create new lots for each Size: use. 344,874 sq. ft. 7.94 acres STAFF RECOMMENDATION Existing Land Use: City Staff recommends approval of the Rezoning Holly Center Shopping Center to S-2, Redevelopment District, with stipulations. Surrounding Land Use & Zoning: Meet the goals highlighted in N: Single Family & R-1 Comprehensive Plan E: Walgreens and Single Family & S-2 and R-1 City Staff also recommends approval of the plat S: Christenson Crossing Townhomes & S-2 request. W: Multi-Family and Commercial & R-2 and R-3 Comprehensive Plan Conformance: 2030 and 2040 Future Land Use Map designates this area as Redevelopment. Legal Description of Property: See attached preliminary plat Building and Zoning History: 1957 – Lot platted. 1957 – Building constructed. 1985 – Addition to the building There have been several interior modifications since the building was constructed. 1984 – SUP issued for Champion Auto 2007 – SUP issued for Bernie’s Automotive Public Utilities: Existing building is connected, utilities are available Subject Property Transportation: CITY COUNCIL ACTION/60 DAY ACTION DATE Property is accessed from a slip off from City Council – September 14, 2020 University Avenue and Mississippi Street 60 Day Date – September 14, 2020 Staff Report Prepared by StacyStromberg Land Use Applications Rezoning Request #20-01 and Plat Request #20-03 The Request The petitioner, Shane LaFave, Director of Development with Roers Companies is requesting two land use items to allow for the redevelopment of the Holly Center property, located at 6530 University Avenue NE. The land use items are: 1.Rezoning Request to S-2, and Subsequent Master Plan – The subject property is currently zoned C-3, General Shopping and the petitioner is requesting to have the property rezoned to S-2, Redevelopment District. When a property is zoned S-2, Redevelopment District, a master plan also needs to be approved for the site. 2.Plat – In order to accommodate the redevelopment of the property, the petitioner would like to create 2 new lots. The petitioner is asking for approval of the above referenced land use items to allow for the construction of a 261-unit multi-family rental housing development and a free-standing commercial building. History In 1957, the Holly Shopping Center building was constructed. In 1959 a gas station was constructed on the southeast corner of University Avenue and Mississippi Street. Throughout the 1960’s and 1970’s there were a wide variety of retail shops that included a grocery store, sporting goods, hardware, camera and film shop, and clothing stores at the Holly Shopping Center. The gas station closed at some time in the early 1980’s and then in 1985, the owners of the station worked with the City to demolish the gas station that was on the site to improve traffic flow on Mississippi Street by reducing entrance points and installing turn lanes. At this time the City liquor store was relocated to the shopping center and the Old Country Buffet opened to help revitalize the center. The site was purchased by the existing owner in 2000. Over the past 10-15 years several well-known tenants moved out of the building, including Old Country Buffet, Snyder Drug, Cost Cutters and SMW Credit Union and the overall condition of the property has deteriorated. In 2018, the existing owner put the property up for sale and in the fall of 2019, Roers Companies started discussion a potential purchase of the property with the owners. Roers Companies has a letter of intent to purchase the property contingent upon these land use items being approved. Proposed Project The City’s 2030 Comprehensive Plan guides the subject property as redevelopment and the 2040 Comprehensive Plan that is the process of Met Council’s approval process further defines the redevelopment of the site as a mixed-use development of multi-family and commercial. As described by the petitioner, “the University Redevelopment is a transformation of an existing aged retail strip center into a new mixed-use development. The many on-site and in-unit amenities, the proximity to retail and recreational attractions and the ease of access to transportation will make this project stand out in the market. It will include a 4-story workforce apartment community comprising of 261 residential apartments and 189 underground parking stalls and 202 surface stalls. Workforce housing is market rate housing, just not the high-end luxury version of market rate. One of the most unique aspects of this project is that it is to target the underserved workforce population of renters. Without sacrificing finish levels and amenities the rent levels in the project will be set at about 80% of what a traditional high-end market rate new construction project would try to achieve. The surrounding area has a large population of renters who have very few options for newer apartment buildings. This project will provide those renters with a new housing option at a rate that won’t prohibit entry. It’s also a project that won’t require an income qualification or section 8 vouchers to occupy the building.” A free-standing 10,000 sq. ft. commercial building is also proposed to be constructed along the west side of the property, with 87 surface parking stalls. Of the 260 units, 67 units will be studios, 109 units will be 1-bedroom, 59 units will be 2- bedrooms and 26 units will be 3-bedrooms. Included in each unit will be a washer and dryer, stainless steel applications, granite countertops, tile backspaces and 9 ft. ceilings. Common area amenities in the building include multiple community rooms, and multiple outdoor patios (one on the top floor with view of the downtown skyline), resident storage areas, a dog wash station, and a game room. Outdoor amenities include a playground, dug run area, seating/gazebo area, and sidewalk connections. What is Workforce Housing? The City has received a number of inquiries over the rents and target market for this project, wondering if this is an “affordable” or “workforce” housing project. Part of the confusion stems from the developer, and others, referring to the project as “workforce housing” without providing a definition. The term “workforce housing” is defined by the Urban Land Institute (ULI) as housing affordable to households earning anywhere between 60% and 120% of the area median income (AMI). In Fridley, that translates to a household of one making between $43,440 and $87,360. For a household of four, that translates to incomes between $62,040 and $124,800. In total, Fridley households have a median income of 63% of the area median income. To put this in perspective, nearly half of Fridley’s existing households would be cost burdened (paying over 30% of their income) to live in “workforce housing”. The chart below shows the 2020 income limits, based on 60% to 120% of AMI, based on household size, put together by the US Department of Housing and Urban Development (HUD). This chart shows the incomes that meet the ULI definition for “workforce housing”. The text in red, “63%” is Fridley’s median income. Income 1 Person 2 Person 3 Person 4 Person Limit HH HHHH HH 120% $87,360 $99,850 $112,320 $124,800 110% $79534 $91,000 $102,366 $113,740 100% $72,310 $82,730 $93,060 $103,400 90% $65,070 $74, 450 $83,750 $93,060 80% $57,920 $66,240 $74,480 $82,720 70% $50,680 $57,960 $65,170 $72,380 63% $45,550 $52,120 $58,630 $65,142 60% $43,440 $49,680 $55,860 $62,040 What is Affordable Housing? The Federal Reserve Bank, HUD, Met Council, and others tend to define “affordable housing” as housing that is affordable to low- and moderate-income households. Low income is typically considered households making 50% or less of AMI, while moderate income is considered those making between 51% to 80% of AMI. For housing to be considered “affordable” the rent/mortgage payment must be 30% or less of the household’s gross monthly income. The chart below, shows the maximum monthly rent (including utilities) that would be considered affordable for households of different income levels. Income 1 Person 2 Person 3 Person 4 Person LimitHHHHHHHH 80% $1,448 $1,656 $1,862 $2,068 70% $1,267 $1,449 $1,630 $1,809 63% $1,139 $1,303 $1,465 $1,628 60% $1,086 $1,242 $1,396 $1,550 Is this project affordable, workforce or market rate? This project is market rate, non-subsidized, non-rent restricted, with rents that will still be affordable to many in the workforce. The proposed project is aiming to keep its rental rates to approximately 80% of new luxury rental buildings. Estimated rents will range from $1,100 for an efficiency unit up to $1,800+ for a three-bedroom unit. In order to not be cost burdened by their housing, a household would need an income of approximately $44,000 for an efficiency unit, $48,000 for a 1 bedroom unit, $63,000 for a 2 bedroom unit, and $72,000 for a 3 bedroom unit. Site Plan Analysis As stated above, the proposed project will involve the construction of a 261-unit multi-family housing building which will be a mix or studios, 1 bedroom, 2 bedrooms, and 3 bedrooms. A 10,000 sq. ft. commercial building will also be constructed. Based on City code requires, 454 parking stalls is required for both uses. The petitioner is showing 478 total stalls on site, of which 189 of those will be underground, therefore meeting code requirements for parking. The existing site is 366,588 sq. ft. in size and 86% of that is currently covered with impervious surface (building, parking areas). The proposed development includes the construction of 2 storm water ponds and an open space area, which reduces the impervious surface area to 60% of the overall site. Access to the site will continue as it is today, with the slip-off from University Avenue and two access points on Mississippi Street. The slip-off of University Avenue has been redesigned and widen to allow fire truck access to the site. The location of the Mississippi Street access points will be modified slightly, but there will continue to be 2 of them. The one that is furthest west will be a full intersection and the one to the east with be a right in/right out only. The proposed multi-family building will be 4-stories with a height of 42 ft. 6 in. The R-3, Multi- Family and the C-3, General Shopping zoning districts requires a maximum height of 65 ft. or 45 ft. when within 50 ft. of an R-1, Single Family zoning district. The petitioner is placing the building to abut the corner of University Avenue and Mississippi Street to achieve a similar feel of the other projects recently approved in the City’s Transit Oriented Development District. The building is this location also places the building further away from the residential homes to the north, which will create a nice buffer. The petitioner plans to keep and repair the existing fence and save as many trees as possible along the northern property line. The petitioner proposes to mimic the fencing across the street at Christenson Crossing, with the brick bollards and iron fencing, on the corner and along University Avenue. Landscaping will also be installed along the edges of the development to add visual interest along this prominent intersection. Rezoning to S-2, Redevelopment District and MasterPlan Analysis The City’s zoning ordinance and official zoning map are the mechanisms that help the City achieve the vision laid out in the Comprehensive Plan. The law gives the City the authority to “rezone” property from one designated use to another, so long as the zoning is in conformance with the Comprehensive Plan. During the 2030 and 2040 Comprehensive Planning process, City staff continued to hear from Fridley citizens that something needs to be done with the Holly Center property. Many concerns raised we related to the condition of the structure, façade, parking, and landscaping. The fact that the site is surrounded by residential properties yet doesn’t provide pedestrian access and that the site is also over-parked for the type of businesses located in the building and is therefore used informally as a park and ride site. The Comprehensive Plan’s 2030 future land use map designates this area as “Redevelopment.” The 2040 Comprehensive Plan that is in the approval process with the Met Council also guides this property as “Redevelopment” and further specifies mixed use multi- family and commercial. In 2016, University of Minnesota students completed a Transportation Study for the City and identified the Holly Center as having a high potential for redevelopment into a mixed-use development. The City encouraged the developer to consider a building with retail/commercial users on the bottom floor of the building, however the current market is showing that this mix isn’t always viable, and developers are struggling to find commercial tenants to occupy that space. Rezoning the property to S-2, Redevelopment District achieves what the City was hoping to see happen to the property in the last two Comprehensive Planning processes. If the rezoning and subsequent master plan are approved by the City Council, any modification of the site plan would need to go back to the City Council for review and approval. Review and Recommendation is also required by the HRA to the City Council before the master plan can be approved. The HRA has seen the plans and will further review them and the redevelopment agreement at their September 3, 2020 meeting. Preliminary Plat Analysis Toaccommodate the redevelopment of the subject property, the petitioner would like to create 2 new lots, one for the multi- family housing project and one for the commercial building. Lot 1 (blue) will be for the multi-family housing project and will be approximately 313,801 sq. ft. (7.21 acres) in size. The City is still working the Anoka County to make Lot 1 sure enough right-of-way, or an easement is obtained to protect the existing utilities, sidewalk and lighting that currently exists along Mississippi Street. A condition will be placed on that plat to make sure that is resolved prior to final plat approval. Lot 2 Lot 2 (yellow) will be approximately 52,812 sq. ft. (1.21 acres) in size and will be occupied by a commercial user. Traffic Study The petitioner hired Swing Traffic Solutions to complete a Travel Demand Management Plan. They analyzed the intersection of University Avenue and Mississippi Street and Mississippi Street and East River Road. Each intersection is given a letter designation from “A” representing the best operation conditions to “F”, representing the best. Generally, Level of Service “D” represents the threshold for acceptable overall intersection operation conditions during a peak hour. The new development will generate 82 inbound and 121 outbound trips during the morning traffic peak hour and will generate 122 inbound trips and 103 outbound trips during the afternoon traffic peak hours. The numbers are based off the 261-unit multi-family building and a daycare use. If the commercial building is occupied by a commercial user other than a daycare, the numbers will likely go down. In the No Build Scenario and the Build Scenario, each intersection gets a letter grade of “B” in the am and “C” in the pm, so both are and will continue to operate well, according to the study. Due to the sites proximity to trails, bus transit and the commuter rail station, the owners of the development with have a Travel Demand Management Liaison that will keep the apartment community aware of travel and commuting options to help limit the amount of parking/driving needed. Staff Recommendation City Staff recommends approval of the Rezoning to S-2, Redevelopment District, ZOA #20-01 and the subsequent master plan, with stipulations. Proposed use meets the goals highlighted in the 2030 Comprehensive Plan. City Staff recommends approval of preliminary plat, PS #20-03. Stipulations City staff recommends the following stipulations on Rezoning and Master Plan, ZOA #20-01. 1.The property shall be developed in accordance with the site plan submitted for “Fridley Multi-Family”, page #C2-1, by Loucks, dated 08/12/2020. 2.The exterior building elevations shall be developed in accordance with the architectural exterior elevation’s sheets submitted by Kaas Wilson Architects. 3.The petitioner shall meet all requirements set forth by: a.The Building Code b.The Fire Code c.The City’s Engineering department – related to grading, drainage, storm pond maintenance agreement, utilities, and utility connection fees d.The City’s Planning department – related to landscaping, signage, parking, setback, and sidewalk/trail connections. e.The Rice Creek Watershed District f.The Minnesota Department of Transportation g.Anoka County 4.If the square footage of the footprint of any of the buildings proposed changes by more than 10%, a S-2 master plan amendment shall be required. 5.The petitioner shall dedicate a trail easement along the eastern property line that connects the residential neighborhood to the north to the sidewalk on the southeast corner of the site, if it is determined that the trail connection is required to be solely or partially on the subject property. 6.The parking formula for this project requires that the 189 underground parking stalls are assigned to a rental unit through that unit’s lease to assure adequate parking overall on this development site. 7.A shared parking and access easement shall be filed with Anoka County on Lot 1 and Lot 2. City staff recommends approval of the following stipulation on Plat, PS #20-03. 1.Right-of-Way dedication or easement dedication for utilities, sidewalk and lighting shall occur with final plat approval. UNIVERSITY REDEVELOPMENT Land Use Application – Project Narrative Project Address: 6554 University Ave NE Current Owner: Roscoli Properties LLC Current Use: Single story retail strip center, surface parking Studio 67 26% 1 Bedroom 10942% 2 Bedroom 59 23% 3 Bedroom 26 10% Total 261 100% Underground, indoor 188 Stalls 2 of 4 Dear Councilmembers, Commissioners, Staff and Community Stakeholders, Roers is pleased to present this application for the redevelopment of the property located at the NWcorner of University Ave and MississippiSt, commonly known as the Holly Center. The University Redevelopment is the transformation of an existing aged retail strip center into a new mixed-use development. The project will include a workforce apartment community comprising approximately 261 residential apartments and 188 underground parking stalls. The Project will bring a unique mixture of quality residential product combined with affordable rent levels to an area that has seen little development in the last 25 years. Its many on-site and in- unit amenities, proximity to retail and recreational attractions, and ease of access to transportation will stand out in a market dominated by older properties. The project will bring new energy and activity to a highly visible and trafficked site along the University corridor. The Project’s 261 units include a range of options including multiple space configurations, and one of the few apartments in the city offering top floor amenity space. The 261 units are comprised of studio, one, two and three bedroom apartment options. Included in each unit will be a washer and dryer, stainless steel appliances, granite countertops, tile backsplashes, and 9’ ceilings. Common area amenities in the building include multiple community rooms, multiple outdoor patios (one on the top floor with view of the downtown skyline), resident storage areas, a dog wash station, and game room. Outdoor amenities include a playground, dog run area, and seating/gazebo area. One of the most unique aspects of this project is that it is built to target the underserved workforce population of renters. Without sacrificing finish levels and amenities the rent levels in this project will be set at about 80% of what a traditional market-rate new construction project would try to achieve. The surrounding area has a large population of renters who have very few options for newer apartment buildings. This project will provide those renters with a new housing option at a rate that won’t prohibit entry. The requested rezoning is to accommodate the change in use of the property as well as to accommodate the requested parking ratios in the new development project. 3 of 4 Site Plan 4 of 4 Area PARKING Area Unit GrossMain Floor Level GROSS AREA - TOTAL LevelTypeCount UNIT MIX - GROSS AREA NameCount