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HomeMy WebLinkAbout2025/01/15 - ADMIN - Minutes - Planning Commission - RegularOfficial minutes Planning commission January 15, 2025 6:00 p.m. 1 Planning commission Members present: Jim Beneke, Mia Divecha, Matt Eckholm, John Flanagan, Estella Hughes (youth member), Sylvie Hyman, Jan Youngquist, Tom Weber Members absent: none Staff present: Laura Chamberlain, Sean Walther Guests: Bill Katter and Rick McKelvey, Hempel Real Estate; Evan Jacobsen, Tushie Montgomery Architects 1. Call to order – roll call. 2. Approval of minutes – none. 3. Hearings. 3a. Public Hearing: Terasa PUD; West End Office Park CUP and special permit amendment Applicant: Hempel Real Estate Case No: 24-28-PUD: 24-29-SP, 24-30-CUP Ms. Chamberlain presented the report. Commissioner Beneke asked about the vouchers and also distribution of 1-, 2- and 3-bedroom units and what is required by the city and what will be provided . Ms. Chamberlain stated the development includes 20% of the units at 50% AMI, and also requesting th e city housing authority board allocates project-based vouchers for provide 30% AMI units. She stated that will cap how much is spent on rent at 30% of household income . Mr. Walther added the project-based units are federally subsidized for the difference between rents charged and the affordability at 30% of AMI. Ms. Chamberlain stated the developer subsidizes at the 50% AMI level and the gap between the 50% and 30% is covered by the voucher program. She added there is no specific requirements for each unit type with bedrooms. She stated when in preliminary talks with developers, which is discussed, and three- bedroom units are a priority of the city council so that is why they are included here. Mr. Walther added the housing authority required that the u nit mix of affordable units to match the unit mix of market rate units in the building. He added this is all negotiated through the contract between the applicant and the economic development authority. Commissioner Hyman asked for clarification about staff’s proposed amendments to the conditions from what was presented in the report after “furthermore” and if it was everything Docusign Envelope ID: 15848AC3-8A9D-4FA7-9170-B7D5C3DF4059 Official minutes Planning commission Jan. 15, 2025 up to the end on page 7. Ms. Chamberlain stated items 1-4 should be omitted and items 5 & 6 should be renumbered to become 1 & 2. Commissioner Eckholm asked about negotiations with biking and transit and asked if reduced transit passes from Metro, for those living in the building is being discussed. Ms. Chamberlain stated yes and it is contemplated in the travel demand management plan draft which shows this is included for users of the site, and they are also exploring having real time transit information in the building as well. Commissioner Weber asked if the other two lots are owned by Hempel and if there are 3 owners in total. Ms. Chamberlain stated currently there is one owner for the 4 lots, Bridge. She added Hempel has a purchase agreement for the 2 west properties and Bridge will continue to own the two east properties. Bridge also owns a third office property to the east. Commissioner Weber asked about the special permit and if the other two lots get redeveloped, will this go away. Ms. Chamberlain stated yes if the two easterly properties redevelop in some manner, then at that time likely the special permit would be revoked. Commissioner Weber noted the EAW slide and asked if this is a city assessment of what could be developed. Ms. Chamberlain stated this was a maximum build scenario based on the current zoning and land use guidance to test possibilities and the infrastructure supporting the area. Commissioner Weber stated this is a dynamic and unique parcel that is right for a chance to go big. Mr. Walther stated the advantage of including the office tower in a future scenario was because office tends to have highest and most concentrated evening peak, so it helps test the impacts to traffic capacity in the peak hours and how well the existing infrastructure can handle this in the future. Commissioner Weber asked how many vouchers are in the city. Mr. Walther stated he does not know that number but can find out. He added in the last 5 years the number of vouchers have been added substantially after having been stagnant for many years and added the city is pleased to be able to serve more households. Commissioner Youngquist stated it is great to see the potentials for deeply affordable units at 30% AMI and asked if this will be St. Louis Park HRA vs. Metro HRA that handles the vouchers. Mr. Walther stated yes, St. Louis Park HRA would administer these. Commissioner Youngquist asked if the vouchers have been committed yet. Mr. Walther responded that they are not committed yet. Commissioner Youngquist asked about the tree replacement fund. Ms. Chamberlain stated this fund is dedicated and used to plant trees on public land. Mr. Walther added best efforts are made to plant trees replaced in the vicinity of the project and within 1 year of when the project opens. Docusign Envelope ID: 15848AC3-8A9D-4FA7-9170-B7D5C3DF4059 Official minutes Planning commission Jan. 15, 2025 Chair Divecha asked why the special permit allowing office in an industrial area is being maintained when it is now zoned as office. Ms. Chamberlain stated in discussions with the applicant and current owner, the current owner preferred to maintain the special permit for their properties. Mr. Walther added there was concern there might be some legal non- conformities that would result if that permit was removed. Chair Divecha asked if the green space will be used as a public space. Ms. Chamberlain stated the intention of that space is to be generally open to the public but privately owned, managed and maintained, and can include restrictions on the hours of use and programing on the site, with details arranged through the development contract. Chair Divecha asked about parking and if there is a certain formula for the number of spaces required per square foot of building. Ms. Chamberlain stated the city’s parking requirements for office uses are based off the square footage of the office buildin g and today they exceed the city minimums, but if 37 spaces are removed for the shared green space there it will result in the parcel being below the minimum requirement by 15 spaces so those need to be accommodated to avoid the site from becoming non-conforming to the city parking requirements. Chair Divecha asked with shared parking will they have signs to make that clear. Ms. Chamberlain stated those details will be established through the actual shared parking agreement with the property owners. Mr. Walther stated he believes despite the shortfall based on the code requirements that the actual demand will be less and the site will have enough parking on its own, but the formulas in the ordinance require either a variance or CUP for off-site parking. Chair Divecha asked how the drive-through and pedestrian access for all the retail work. Ms. Chamberlain explained that in detail using the map. Chair Divecha asked if there are zoning requirements for drive-throughs. Ms. Chamberlain stated yes and explained that in detail, noting it is allowed in the office use district with the CUP. Commissioner Flanagan asked about idling in the drive-through and how exhaust impacts to residences above it will be handled. Ms. Chamberlain stated there are requirements for queuing spaces, but no requirements related to idling. Commissioner Flanagan stated that seems the idling under outdoor terraces seems like a disconnect with negative effects of exhaust. Commissioner Flanagan asked about the pedestrian path from the north and asked if there is a crosswalk there and if there is a plan to have one there. Ms. Chamberlain stated that could be a recommendation. Commissioner Hyman asked who owns the right of way on Park Place, Gamble, and Parkdale streets. Mr. Walther stated those are all city streets, and added the stop lights/traffic signals Docusign Envelope ID: 15848AC3-8A9D-4FA7-9170-B7D5C3DF4059 Official minutes Planning commission Jan. 15, 2025 along Park Place Blvd are controlled by MNDOT because they tie into Hwys. 394 and 100 signal systems. Chair Divecha opened the public hearing. Bill Katter and Rick McKelvey, Hempel Real Estate, and Evan Jacobsen, Tushie Montgomery Architects were available for questions. Mr. McKelvey stated they will address crosswalks, and noted staff explained the green space adequately. He added the terraces are 50 feet above street level and stated their HVAC system will adhere to intake rules related to this to avoid issue with the drive-through. Chair Divecha asked if there are retailers planned already. Mr. McKelvey stated yes, they do. Chair Divecha asked about the design, and stated she does not love facades that are not planned for pedestrians, and pedestrian access and she asked why they chose to do pedestrian access this way. Mr. McKelvey stated on a high-density mixed-use development it is more difficult, but stated this is a pedestrian-friendly design coming in from Gamble St. and from the south. He stated the drive-through is important for sales and economics related to the development. He stated some of those involved in reviewing the plan liked the drive-through option, especially those with mobility challenges and with small children. Commissioner Flanagan asked about the service vehicle entry. Mr. McKelvey stated the entrance is right entry only for service vehicles and deliveries and retail spaces. He added gate arms will control the entry. Commissioner Youngquist asked about the drive-through and about safe pedestrian access from the bus stop. Mr. McKelvey stated entrances are connected by sidewalks at all times, and more direct access is available when there is not a delivery vehicle loading/unloading. Commissioner Youngquist asked if the affordable units will be mixed throughout the building or concentrated in one area. Mr. McKelvey stated ordinance requires them to be distributed throughout and consistent with the building unit mix. Commissioner Youngquist talked about a restaurant development in the area and concern about Unteidts seasonal market being displaced again. She asked if the developer has had conversations with them yet about their location. Mr. McKelvey stated they have not had conversations with them yet and had not been contacted by them but are open to this discussion. Commissioner Eckholm asked if the developer is seeking assurances that the commercial tenants will build and use both entrances. Mr. McKelvey stated no, and added there is one primary entrance for the retail suites on the south. He stated on the grocery tenant on the north the entrance is still under negotiation and added a primary and sec ondary entrance would be nice. Docusign Envelope ID: 15848AC3-8A9D-4FA7-9170-B7D5C3DF4059 Official minutes Planning commission Jan. 15, 2025 Commissioner Weber asked if there is a grocer tenant in mind and if that is conditional on the whole development's success. Mr. McKelvey stated they do have one in mind but cannot say who that is. He noted they are not concerned if the grocer tenant does not commit to the development and are confident in its marketability either way. Commissioner Eckholm asked about the service drive pavement and if it is more like the sidewalk vs. the driving areas. Mr. McKelvey stated yes it will. Chair Divecha asked about the general economics to make this work with the drive-through and the units. Mr. McKelvey stated this was discussed with staff and their consultants and with the city council, the economic impact without the drive-through is more than $2 million, which would be significant. Chair Divecha asked if that would have impacted the affordability. Mr. McKelvey stated they would have had to increase the TIF request, and they wanted to minimize the term. Commissioner Hyman asked about the swing arm and how much space will be there for pedestrians. Mr. McKelvey stated when the interior swing arm is down, pedestrians will not be allowed to enter the space, when there is a service vehicle loading or unloading. Otherwise, the interior gate will be open 90% of the time. Mr. Jacobsen added there is a second traffic arm on the west side of the sidewalk that will prevent passenger vehicles from driving through at all times and limit access from the road to delivery trucks. Commissioner Hyman stated she is frustrated when pedestrian are waiting or getting on and off the bus and congregate and block the sidewalks, and she had concerns that the bus stop is against a building wall instead of next to an entrance to the complex. She stated she understands the rationale of the drive-through but is also concerned about space in that area for pedestrians at the bus stop. She asked if there will be adequate space for pedestrians waiting. Mr. McKelvey showed the slide and explained the location of the bus stop. Commissioner Hyman asked if it were not for the St. Louis Park parking requirements, how much parking would the developer want to have. Mr. McKelvey stated this design is correct and there is one stall per bedroom, so that is the target and the city’s parking requirement is appropriate. Chair Divecha closed the public hearing. Commissioner Eckholm stated he understands the concerns about the drive -through. He noted this is a big site and the developer is restoring a street grid to a site that has been curb cuts for over 50 years. He stated it is clear that they added uniqueness to the design, and he is appreciative of that. He stated he appreciates they are not just putting up a box. He stated while he prefers no drive-through here, he recognized the reality of it and to make it approachable and offer affordable housing for all. Docusign Envelope ID: 15848AC3-8A9D-4FA7-9170-B7D5C3DF4059 Official minutes Planning commission Jan. 15, 2025 Chair Divecha added she wants a walkable city, but she does appreciate the context of the tradeoffs and that this has a high target of affordable housing, and meets the city’s strategic priorities, and if the drive-through is a compromise, she supports this. She stated she supports mixed-use and hopes the city goes to this increasingly. Commissioner Youngquist stated there is lot s to love with the development, she likes the articulation and the affordability of the project . She likes the green space also, but she is not a fan of the drive-through, however added she will not hold up a multi-million-dollar project because of that. Commissioner Weber agreed and stated he is indifferent about the drive-through. He stated there is nothing walkable about the space now, and noted even through the stores face the parking and backspace, once inside you feel you are inside a community . He stated with Park Place Blvd. and opposite a massive development like Costco, it is nice the developer has created a walkable space with shops in this area, and he will support this. Commissioner Hyman stated she is excited about this project and the housing. She asked about the bike parking and how much is open to the public for use, and is a car parking spot needed in order to have a bike parking spot. She added she wants bikes, pedestrians and bus users thought of and hopes also the city will make this more accommodating for pedestrians as well. She added she is like to see the green space moved closer to the housing part, but stated it makes sense where it is centrally located. She added she does not like the drive-through. It was moved by Commissioner Beneke, seconded by Commissioner Weber, to recommend approval of the West End Office Park CUP, Terasa PUD, and the special permit amendment subject to the conditions recommended by staff. The motion passed unanimously. 4. Other Business – none. 5. Communications. Mr. Walther noted the next meeting is Feb. 5, 2025, and will include a public hearing on city property owned on Minnetonka Blvd. west of Lake Street . He stated there will also be a study session following that meeting as well. 6. Adjournment – 7:30 p.m. ______________________________________ ______________________________________ Sean Walther, liaison Matt Eckholm, acting chair member Docusign Envelope ID: 15848AC3-8A9D-4FA7-9170-B7D5C3DF4059