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052912 PacketPLANNING COMMISSION RICHFIELD AGENDA May 29, 2012 7:00 p.m. Introductory Proceedings Roll Call Approval of Minutes: Regular Planning Commission of March 26, 2012 and April 23, 2012 Study Session. Opportunity for Citizens to Address the Commission on items not on the Agenda Public Hearing ITEM #1 12-FDP-01, 12-CUP- Consideration of a Zoning Ordinance amendment, final 03, 12-PUD-01, 12- development plan and conditional use permit for a planned RZN-01 unit development that would allow construction of a 70-unit development that includes 18 townhomes and a 52-unit apartment building on 7641 Pleasant Avenue (the former Richfield Public Works Garage property and the former Gleason Mortuary at 211 W. 76th Street). New Business ITEM #2 PC Letter#9 Consideration of a resolution finding that the modification to the Redevelopment Plan for the Richfield Redevelopment Project Area and establishment of the Pillsbury Commons Tax Increment Financing District and Tax Increment Financing Plan are consistent with the Richfield Comprehensive Plan ITEM #3 PC Letter#10 Consideration of a resolution finding that the sale of certain real property conforms to the general plans for the development and redevelopment of the City Old Business Liaison Reports Community Services Advisory Commission City Council Housing and Redevelopment Authority(HRA) Richfield School Board Transportation Commission Chamber of Commerce Other City Planner's Report Next Meeting Date: Monday, June 25, 2012 Adjournment Auxiliary aid for individuals with disabilities are available upon request. Requests must be made at least 96 hours in advance to the City Clerk at 612/861-9738". fi Planning Commission CITY OF i n utesRICHFIELD11/1 March 26, 2012 immingsm MEMBERS PRESENT: Chair Rick Jabs, Commissioners Robert Hall, Dan Kitzberger, Josh Root, Tom Rublein, Maureen Scaglia, Dennis Schuller and Gordon Vizecky MEMBERS ABSENT: None STAFF PRESENT: John Stark, Community Development Director Christine Costello, Community Development Specialist Lance Bernard, Interim City Planner OTHERS PRESENT: Corrine Heine, City of Richfield legal counsel Chair Jabs called the meeting to order at 7:00 p.m. APPROVAL OF MINUTES MNizecky, S/Root to approve the amended minutes of the Regular Planning Commission Meeting on January 23, 2012 and the regular meeting of February 27, 2012. Motion carried: 8-0 OPEN FORUM No members of the public spoke. PUBLIC HEARING(S) ITEM #1 Case No. 12-SP-10 — Site plan approval for 6328 Penn Avenue. CD Director Stark presented the staff report. The applicant for 6328 Penn Avenue, David Halsey stated he is open to shared parking options. March 26, 2012 M/Root, S/Hall to close the public hearing. Motion carried: 8-0 M/Rublein, S/Root to recommend approval of a resolution granting site approval for general office and warehouse use at 6328 Penn Avenue. Motion carried: 8-0 ITEM #2 12-CP-01, 12-FDP-01, 12-CUP-03, 12-PUD-01, 12-RZN-01 — Continue the public hearing regarding consideration of a number of requests related to a proposed planned unit development that would allow construction of a 70-unit apartment building at 7641 Pleasant Avenue to April 23, 2012 CD Director Stark stated that there was nothing to add from the staff's perspective regarding the continuance. Ron Clark would provide an explanation for the continuance. Ron Clark presented a brief description of their modifications to their proposal. He stated that they wanted to address concerns about density and hopefully their revised proposal would eliminate any fear about future phases. Ron Clark further stated that they would purchase the HRA owned property and then dedicate that back to the City, which would bring their density into compliance with the Comprehensive Plan. He also stated that they would not purchase the HRA vacant residential lot on Pillsbury Avenue, and would allow the HRA to develop a single family home on that parcel in the future. M/Root, S/Rublein to continue the public hearing to April 23, 2012 for consideration of a number of requests related to the proposed development at 7641 Pleasant Avenue. Commissioner Rublein inquired whether the 60-day clock is stopped or if original proposal is restarted or reset. CD Director Stark stated that the 60-day clock was stopped since the request was from the applicant. Commissioner Hall stated his concern that calling the question while there was continuing discussion was out of order. Rublein asked questions of how long the Planning Commission could continue this item. CD Director Stark stated that the Planning Commission has the right to continue an item if they need additional information in order to make a recommendation to the Council. M/Root, S/Rublein to continue the public hearing regarding consideration of a number of requests related to a proposed planned unit development that would allow construction 2 March 26, 2012 of a 70-unit apartment building at 7641 Pleasant Avenue to the next Planning Commission meeting April 23, 2012 Motion carried: 7-1 (Hall voted against) Chair Jabs noted that this is not a public hearing but invited public to make brief comments/questions. City Attorney Heine stated that if people spoke today they should not speak at the April 23, 2012 hearing and that speaking today without benefit of the application would not be appropriate. NEW BUSINESS Commissioner Rublein requested clarification regarding the CVS Pharmacy being open 24 hours and whether that was allowed. CD Director Stark stated that staff will review the Conditional Use Permit (CUP) to ensure that CVS is in compliance with their hours of operation. Commissioner Rublein asked for clarification of a rental housing study that was being done. CD Director Stark stated that the Richfield HRA had set a goal to get a better understanding of the rental housing stock in Richfield and that this study by Stantec was fulfilling that goal. CD Director Stark further stated that there would be a joint work session with the Council, HRA, and Planning Commission for April 16th on a presentation of the findings of the study. OLD BUSINESS ITEM #3 PC Ltr#6 —Approval of Planning Commission Bylaws CD Director Stark presented the staff report. Commissioner Hall asked whether Section 3 - Special Meeting could be modified to include a three-day notice instead of just stating "in accordance with the open meeting law". CD Director Stark stated that the reason the wording was changed to `in accordance with the open meeting law" was in case there were any changes to that law the Planning Commission Bylaws would still be in compliance without having to amend the Bylaws again. Commissioner Scaglia stated that she agreed with the proposed changes as stated in the Planning Commission report. 3 March 26, 2012 Commissioner Hall suggested moving the regular Planning Commission meetings up a week sooner (to the 3rd Monday of each month) so that the City Council would not have to consider an item the day after the Planning Commission had discussed it. CD Director Stark responded that it is staff's policy that any item considered by the Planning Commission in a given month does not go on to the City Council's agenda until the 2nd Tuesday of the following month (rather than their meeting on the 4th Tuesday of the month which usually occurs the day after the Planning Commission meeting) to ensure that the Council has adequate time to consider the Planning Commission's input. M/Rublein, S/Root to approve the amendments to the Planning Commission Bylaws. Motion carried: 8-0 ITEM #4 PC Ltr#7 —Approval of Study Session schedule for 2012-2013 MNizecky S/Root to approve the resolution setting the dates for the 2012-2013 study sessions. LIAISON REPORTS Community Services Advisory Commission: Commissioner Rublein City Council: Commissioner Hall, City Council minutes have not been posted. HRA: No report Richfield School Board: Commissioner Kitzberger Transportation Commission: Commissioner Scaglia Chamber of Commerce: Commissioner Vizecky Other: No report ADJOURNMENT M/Rublein, S/Root to adjourn the meeting. Motion carried: 8-0 The meeting was adjourned by unanimous consent at 7:56 p.m. Dan Kitzberger Secretary 4 RICCITHFYIEOF LD Planning Commission Study Session Minutes April 23, 2012 MEMBERS PRESENT: Chair Rick Jabs, Commissioners Robert Hall, Josh Root, Tom Rublein, Gordon Vizecky, Daniel Kitzberger and Maureen Scaglia, Dennis Schuller MEMBERS ABSENT: None STAFF PRESENT: John Stark, Community Development Director Jennifer Grinde, Housing Inspector OTHERS PRESENT: None Chairperson Jabs called the meeting to order at 6:00 p.m. ITEM #1 Discussion Regarding the City's Rental Licensing Program Housing Inspector Jennifer Grinde provided information and answered Commissioner questions regarding the Rental Housing Licensing Program, including: History of the program; Numbers and types of units that are licensed; Trends in changing rental types; Common examples of noncompliance, and; Methods of, and difficulties in, identifying rental properties. ADJOURNMENT The meeting was adjourned by unanimous consent at 6:53 p.m. Dan Kitzberger Secretary AGENDA SECTION: PUBLIC HEARING AGENDA ITEM# 1 REPORT# CASE# 12-FDP-01, 12-CUP- 03, 12-PUD-01, 12- RZN-01 4111 PLANNING COMMISSION STAFF REPORT RICHFIELD PC MEETING DATE: MAY 29, 2012 ITEM FOR PLANNING COMMISSION CONSIDERATION: Public hearing regarding consideration of a Zoning Ordinance amendment, final development plan and conditional use permit for a planned unit development that would allow construction of a 70-unit development that includes 18 townhomes and a 52-unit apartment building on 7641 Pleasant Avenue (the former Richfield Public Works Garage property and the former Gleason Mortuary at 211 W. 76th Street). I.RECOMMENDED ACTION: 1) Conduct and close a public hearing related to: a) a Rezoning to designate 7641 Pleasant Avenue and 211 West 76th Street as Planned Multi-Family Residential (PMR); and b) a final development plan and conditional use permit for a planned unit development at 7641 Pleasant Avenue and 211 West 76th Street. 2) Engage in Commissioner discussion regarding this item, and; 3) Continue action (voting) on this item until the June 25, 2012 Regular Planning Commission Meeting. II. BACKGROUND Ron Clark Construction and Design along with Connelly Development LLC (which is a wholly-owned entity of Ron Clark) (Developer) originally submitted a land use application related to a proposal for the 70-unit 'L-shaped' apartment building that was 100% affordable on February 21, 2012. The Developer then submitted a revision to their initial land use application on March 21, 2012. This revised plan proposed the developer's purchase of the two City-owned parcels and the HRA-owned parcel along 76th Street for use as open space and a drive aisle. Concern was expressed to the developer that even with the proposed additional land, the concentration of the density was unbalanced on the site with the bulk of the development located on the southernmost portion of the property; leaving the remainder of the site underdeveloped. Due to this concern the Developer withdrew their initial land use application on April 3rd. On April 30th, the developer submitted a new land use application for the construction of a 70-unit development that includes a 52-unit apartment building and 18 townhomes to be developed on all of the City-owned parcels and the HRA-owned parcel along 76th Street. The current application still proposes for all the units to be 100% affordable as required through the Minnesota Housing Finance Agency (MHFA) Tax Credit financing that the developer secured in 2011. The developer has also requested Tax Increment Financing (TIF). This request will be considered by the City Council and Richfield Housing and Redevelopment Authority (HRA) under a separate action and is not a part of the consideration of land use approvals. The developer has stated that the two existing single-family homes and the HRA-owned single-family lot at the southwest corner of 76th Street and Pillsbury Avenue are not part of this application and that they have no plans on developing those properties in the future. The Planning Commission was originally scheduled to take a number of actions at the May 29 meeting related to the Pillsbury Commons proposal. Those actions included: A Public Hearing to consider rezoning the site to Planned Multi-Family Residential (PMR) with a Conditional Use Permit (CUP); A consideration of whether the proposed TIF Plan and related documents are consistent with the Comprehensive Plan, and; A consideration of whether the sale of publicly-owned parcels for inclusion in the development is consistent with the Comprehensive Plan. The item related to the TIF Plan, however, is dependent on the completion of a draft TIF Plan, including the "but-for" findings (and related documents, including a Modification to the Richfield Redevelopment Project Area and a "But-For" Analysis). As is evidenced by the attached letter from HRA Attorney Julie Eddington, staff and consultants are still lacking certain information needed to complete the draft TIF Plan and related documents. The result is that a completed TIF Plan could not be included in the agenda packets delivered to the Planning Commission today so that the Planning Commission could review the TIF Plan before making a determination as to whether the proposed TIF Plan and related documents are consistent with the Comprehensive Plan. At the May 29 Planning Commission Meeting, staff will be recommending that the Commission continue the item(s) related to the TIF Plan until their regular June meeting (June 25). Staff is recommending that the Planning Commission hold a Public Hearing on the rezoning and CUP (as had been advertised and noticed by mail to area residents) and engage in Commissioner discussion, but continue action (voting) on the item until the June 25 Regular Planning Commission meeting in order that: a) all Planning Commission action on this item can occur in concert at one meeting on this item (as Planning Commissioners have expressed their desire to not make decisions in a "piecemeal" manner on this project), and; b) so staff can prepare proposed findings for inclusion in an ordinance and resolution to be considered based on Planning Commissioners' collective input. III. BASIS OF RECOMMENDATION A. POLICY Comprehensive Plan The Comprehensive Plan designation of this site is for Medium-High Density Residential, which allows a range of 12 to 24 units per acre and no greater than four stories in height. The current proposal before the Planning Commission meets this requirement at 24 units per acre and four stories in height, so an amendment to the Comprehensive Plan is not required. Zoning Ordinance Amendment A change in the zoning designation of the parcels will ultimately be required regardless of whether or not this project is approved. The only reason that the zoning was not changed to MR-3 (High- Density Residential) following adoption of the Comprehensive Plan is that discussions with Ron Clark had begun and City staff opted to defer in order to avoid possibly rezoning the property again when a project proposal came forward. The MR-3 Zoning District is consistent with the density designations prescribed by the Comprehensive Plan. The MR-3 Zoning District is intended for multi-family dwellings with 20 or fewer units. Multi-family dwellings with more than 20 units are subject to a Conditional Use Permit CUP). Given the size of this parcel and its Comprehensive Plan designation, the MR-3 zoning designation would be the appropriate choice to bring the parcel's zoning designation into agreement with the Comprehensive Plan. The developer has applied for a zoning change to Planned Multi- Family Residential. Planned unit developments (PUDs) are intended to encourage the efficient use of land and resources and to encourage innovation in planning and building. PUDs provide flexibility in the application of guiding district dimensional requirements, densities and land uses if the proposed development is well designed and can be successfully integrated into the neighborhood. The guiding districts for a Planned Multi-Family Residential development are the MR-2 and MR-3 Districts. The purposes of the MR-2 and MR-3 District regulations are to reserve appropriately located areas for multi-family residential dwellings while preserving as many as possible of the desirable characteristics of single-family districts; to provide opportunities for infill housing development, thereby allowing greater intensities and a wider variety of housing types; to minimize traffic congestion and avoid the overloading of utilities by preventing the construction of building of excessive size or density in relation to the surrounding land, buildings or infrastructure; and to provide multi-family residential areas that are safe and attractive. As mentioned above, in order to encourage efficient land use PUDs provide flexibility in the application of requirements when the development is well-designed and can be successfully integrated into the neighborhood. The Developer has submitted a final design proposal ("Tab 7 — Site & Landscaping Plans") that addresses neighbor-identified concerns related to traffic, access and parking along Pillsbury Avenue. The City's Administrative Review Committee (ARC) is comprised of staff members from all City departments. ARC reviewed the April 30th plan submitted at its May 14th meeting. The comments from the ARC meeting are: Staff comments stated that the proposed development did not meet the requirement for buildings to be oriented to the public street and only partially met the requirement for the exterior appearance of the building to be compatible with the character of the neighborhood. The six-unit townhome building along Pillsbury Avenue is approximately 24 feet from the street and oriented in towards the proposed development It should be noted that staff prefers having the townhomes closer to, and oriented to, the street to provide a more residential setting. To address neighbor-identified concerns the developer moved the townhomes further away from the street and oriented them facing inwards. Bicycle parking is required for parking lots with more than 20 parking spaces, and bicycle racks are required to be provided at 5% of the required parking spaces. The developer has proposed seven bicycle racks. All were initially located in the underground parking area. Staff asked that some of the bicycle parking be moved to the outside near the main entrance of the apartment building and the developer has complied with that request. Pedestrian lighting is required along 77th Street that matches the existing pedestrian lighting throughout the community. The developer has provided the pedestrian lighting as asked for in the ARC comments. Zoning Code requirements related to lot size, building coverage, unit size, lot coverage, trash and recycling, screening of mechanical equipment, parking, bicycle parking and access, landscape placement and design, irrigation, window and façade treatment, and lighting are met. I. Required Findings The following findings are necessary for approval of a PUD application (542.09 Subd. 3): 1. Comprehensive Plan policy[5-10]: Promote the development of a balanced housing stock that is available to a range of income levels; The City's Comprehensive Plan designates this block as medium-high density residential. The developer meets the designation through the proposed purchase of additional City and HRA-owned parcels. The Comprehensive Plan includes goals to provide a variety of housing types at a variety of prices through development of safe, walkable and transit-friendly developments that can be integrated into the surrounding neighborhood. 2. The proposed development is designed in such a manner as to form a desirable and unified environment within its own boundaries; This requirement is met. The development will provide an attractive, safe housing option with many amenities that renters desire. 3. The development is in substantial conformance with the purpose and intent of the guiding district, and departures from the guiding district regulations are justified by the design of the development; The development is in substantial compliance with the intent of the guiding MR-2 and MR-3 District. Deviations from City regulations have been allowed in order to screen surface parking and provide more screening to surrounding single-family residences from the proposed development. 4. The development will not create an excessive burden on parks, schools, streets or other public facilities and utilities that serve or area proposed to serve the development; The City's Transportation Engineer, Recreation Director and Public Works Department have reviewed the proposed plans and do not believe that the development will create an excessive burden on parks, streets or other public facilities and utilities. The superintendent of Richfield Public Schools has been informed of the details of this project; but neither he nor the Board has taken a position on whether the proposed development would have any impact on the District. 5. The development will not have undue adverse impacts on neighboring properties; By-design the Zoning Code includes some requirements/findings that are subjective. "Undue adverse impacts" can mean different things to different persons. This is a requirement to be weighed and decided upon by individual members of the Commission and ultimately the City Council. 6. The terms and conditions proposed to maintain the integrity of the plan are sufficient to protect the public interest; the final development plan, which establishes the terms and conditions of the development, will be drafted to meet this requirement. The Planning Commission should decide whether the proposed development satisfies each of these required findings. II. All uses are conditional uses in the PMR District. The findings necessary to issue a Conditional Use Permit (CUP) are as follows (Subd. 547.09, Subd. 6): 1. Comprehensive Plan policy(5-10]: Promote the development of a balanced housing stock that is available to a range of income levels. 2. The proposed use is consistent with the purposes of the Zoning Code and the purposes of the zoning district in which the applicant intends to locate the proposed use; the purposes of the MR-2 and MR-3 Districts are to reserve appropriately located areas for multi-family residential dwellings while preserving as many as possible of the desirable characteristics of single-family districts; to provide opportunities for infill housing development, thereby allowing greater intensities and a wider variety of housing types; to minimize traffic congestion and avoid the overloading of utilities by preventing the construction of building of excessive size or density in relation to the surrounding land, buildings or infrastructure; and to provide multi-family residential areas that are safe and attractive. Whether or not the proposed development meets these stated goals is a decision that must be made by individual Commission and Council Members. 3. The proposed use is consistent with any officially adopted redevelopment plans or urban design guidelines; While there are no officially-adopted redevelopment plans for this site, the Corridor Housing Initiative recommended low to medium density housing of 2-3 stories designed to blend in with the neighborhood through building and site design, to include pedestrian and safety-oriented elements like sidewalks and porches, and which would be affordable to low to middle income families and/or seniors. 4. The proposed use is or will be in compliance with the performance standards specified in Section 544 of this code; the proposed development is in substantial compliance with the performance standards specified. Deviations have been permitted as part of the PUD process and help to address the development's relationship to the adjacent single-family neighborhood. 5. The proposed use will not have undue adverse impacts on governmental facilities, utilities, services, or existing or proposed improvements; there are or will be adequate facilities, utilities, streets and services to support the development. 6. The use will not have undue adverse impacts on the public health, safety, or welfare; staff is unaware of any specific threat to the public heath, safety and welfare. 7. There is a public need for such use at the proposed location; the Comprehensive Plan guides the proposed parcels as Medium-High Density Residential that allows a density of 12 to 24 unites per acres and no more than four stories tall. 8. The proposed use meets or will meet all the specific conditions set by this code for the granting of such conditional use permit. The Planning Commission should decide whether the proposed development satisfies each of these required findings. B. CRITICAL ISSUES The approval of the rezoning is contingent on the City and HRA agreement to sell their properties to the developer, and approval of the final development plan and conditional use permit are contingent on the rezoning, and approval of the proposed plat. The Comprehensive Plan Housing Policy: Promote the development of a balanced housing stock that is available to a range of income levels. The Comprehensive Plan 2030 Future Land Use Plan (Figure 4.8) identifies this site as Medium-High Density Residential. Medium-High Density Residential includes multi-unit and multi-building developments. The allowed density would range from 12 to 24 units per acre and no greater than four stories tall. The proposed development provides new, larger apartments — a unit type that is currently lacking within the City. While classified as affordable housing, the proposed development will have rents that exceed the average rent in the City by $150-$200 per month for similarly sized units. This is further testament to the age and declining market appeal of the existing rental stock in the City. C. FINANCIAL Required application fee has been paid. D. LEGAL Zoning: Existing: I — Industrial Proposed: PMR — Planned Multi-Family Residential Land Use: Existing: Vacant industrial Proposed: High-Density Residential District (MR-3) Comprehensive Plan: Medium-High Density Residential Notification: Notice of the hearing was mailed to residents and property owners within 500 feet of the proposed development and published in the Sun Current Newspaper. 60-Day: Application submitted: 4/30/12. Administrative Review Committee Meeting: 5/10/12; Plans for Land Use Application Complete: 5/14/12. Planning Commission Meeting is day 15 of the 60-day clock. Other Actions: Council: Scheduled for consideration on June 12, 2012 for the first reading of the rezoning, and the second reading is scheduled for consideration on June 26 , 2012. HRA: Scheduled for public hearing to consider the sale of the HRA Property to Ron Clark, and consideration of Development Agreement and TIF plan on June 18, 2012. IV. ALTERNATIVE RECOMMENDATION(S) Continue consideration of the matter to a future planning commission meeting, if the commission determines that additional time is required for consideration of the requests. Recommend denial of one or both items with supporting findings. Recommend approval of one or both items with additional stipulations/conditions. V. ATTACHMENTS Pillsbury Commons Three-Ring Binder (provided separately during the week of May 21) Planning & Zoning maps VI. PRINCIPAL PARTIES EXPECTED AT MEETING Representative(s) of Ron Clark Construction and Design 7641 Pleasant Avenue Current Land Use RES RES RES RES- --,— Z RES RES RES A' RES PRK D W RES 0RESRESRES RES W J RES F- RES RES RES i RES RES RES RES o w RES RES RES RES RES RES RES RES RES RES RES RES RES RES RES co RES RES RES RES RES RES RES 76TH ST RR RES RES RES RES RES RES WW RESAPT PUB RES RES RES RES RES APT RES RES RES RES RES APT RES RES RES Z RES APT RES RES RES PUB RES APT RES RES RES 0 RES RES APT RES RES RES 77TH ST COM COM COM RR PUB COM APT COM LEGEND: N RES- Residential APT-Apartment 0 50 100 200 300 400 COM -Commercial Feet PRK- Park PUB- Public RR - Railroad 7641 Pleasant Avenue Current Zoning R R R R R 5 R W J.- R R R R I-I R R R R W R R R R R R R R R R R R R R R R R R R R R R R R 76TH ST R R R I R R R R R MR-2 I I R R R R R MR-2 I R R R R R MR-2 R R R 0 R 7 R MR-2 R R R Q/ I R 0 R MR-2 R R R J R R MR-2 R R R 77TH ST MU-N MU-C MU-N MU-N MU-N MU-N MU-R R MU-N I MU-N MU-R MU-N MU-N MU-N MU-N N LEGEND: R- Residential A MR-2 - Mulit-Family Residential 0 50 100 200 300 400 MU-N - Mixed Use Neighborhood NE Feet MU-C - Mixed Use Community 7641 Pleasant Avenue Current Comprehensive Plan Designation 1"-LDR LnR LDR Z LDR LDR LDR fY LDR LDR PRK V W LDR 0 LDR LDR CD LDR LDR W I LDR I' LDR LDR LDR J LDR LDR J LDR Z LDR ri a_ u..1 LDR LDR LDR LDR LDR LDR LDR LDR LDR LDR LDR LDR LDR LDR LDR VJ LDR LDR LDR LDR LDR LDR LDR 76TH ST PRK LDR MHD MHD LDR LDR LDR W LDR MHD MHD MHD LDR LDR LDR LDR MHD MHD LDR LDR LDR LDR MHD LDR LDR LDR 0 Z LDR MHD LDR LDR LDR MHD LDR MHD LDR LDR LDR 0 LDR LDR MHD LDR LDR LDR 77TH ST RCO HDR HDR PRK MHD HDR HDR HDR N LEGEND: LDR - Low Density Residential 0 50 100 200 300 400 MHD - Medium High Density Residential Feet RCO- Regional Commercial/Office PRK- Park AGENDA SECTION: NEW BUSINESS AGENDA ITEM# 2 REPORT# 9 CASE# PLANNING COMMISSION STAFF REPORT RICHFIELD PC MEETING DATE: MAY 29, 2012 ITEM FOR PLANNING COMMISSION CONSIDERATION: Consideration of a resolution finding that the modification to the Redevelopment Plan for the Richfield Redevelopment Project Area and establishment of the Pillsbury Commons Tax Increment Financing District and Tax Increment Financing Plan are consistent with the Richfield Comprehensive Plan. I.RECOMMENDED ACTION: By motion: Continue the Consideration of a resolution finding that the modification to the Redevelopment Plan for the Richfield Redevelopment Project Area and establishment of the Pillsbury Commons Tax Increment Financing District and Tax Increment Financing Plan are consistent with the Richfield Comprehensive Plan until the June 25, 2012 Regular Planning Commission Meeting. II. BACKGROUND The Planning Commission was scheduled to consider whether the proposed TIF Plan and related documents for the proposed Pillsbury Commons development are consistent with the Comprehensive Plan a number of actions at the May 29 meeting. The item related to the TIF Plan, however, is dependent on the completion of a draft TIF Plan, including the "but-for" findings (and related documents, including a Modification to the Richfield Redevelopment Project Area and a "But-For" Analysis). As is evidenced by the attached letter from HRA Attorney Julie Eddington, staff and consultants are still lacking certain information needed to complete the draft TIF Plan and related documents. The result is that a completed TIF Plan could not be included in the agenda packets delivered to the Planning Commission today so that the Planning Commission could review the TIF Plan before making a determination as to whether the proposed TIF Plan and related documents are consistent with the Comprehensive Plan. This item, therefore, should be continued to the June 25, 2012 Regular Planning Commission Meeting. III. BASIS OF RECOMMENDATION A. POLICY Pursuant to Minnesota Statutes, the Planning Commission is required to review Redevelopment Plans and comment on conformance to the City's Comprehensive Plan (typically by means of a Resolution). The modification to the Redevelopment Plan for the Richfield Redevelopment Project Area and establishment of the Pillsbury Commons Tax Increment Financing District and Tax Increment Financing Plan have not been completed to date due to insufficient information from the developer. Without the TIF Plan (and related documents), the Planning Commission has no basis to take this action. B. CRITICAL ISSUES The City Council has made a call for a Public Hearing to be held at their June 26, 2012 meeting to consider final approval for the establishment of this TIF District and modification of the Richfield Redevelopment Project Area. That decision may have to be either: Delayed until after the Planning Commission has been able to make the required Finding of Consistency, or; Be made contingent upon a later Finding of Consistency by the Planning Commission. C. FINANCIAL Ehlers Associates, Inc., the HRA's financial consultant, is preparing the tax increment financing plan for the district, but needs additional information from the developer in order to complete this draft document. D. LEGAL Chapter 469 of the Minnesota State Statutes requires that whenever the City adopts or modifies a Redevelopment Plan, the Planning Commission must review the plan for consistency with the City's Comprehensive Plan. Minnesota Statutes also require that the Planning Commission consider whether the sale of a publicly owned parcel would be in conformance with the community's Comprehensive Plan. IV. ALTERNATIVE RECOMMENDATION(S) N/A. V. ATTACHMENTS Letter from HRA Attorney Julie Eddington VI. PRINCIPAL PARTIES EXPECTED AT MEETING Representative of Ron Clark Construction and Design Offices in 470 U.S.Bank Plaza Kennedy 200 South Sixth Street Minneapolis Minneapolis,MN 55402 Saint Paul ( 612)337-9300 telephone raven 612)337-9310 fax St. Cloud www.kennedy-graven.com C H A R T E R E D Affirmative Action,Equal Opportunity Employer JULIE A.EDDINGTON Attorney at Law Direct Dial(612)337-9213 Email:jeddington @kennedy-graven.co May 23,2012 Ron Clark Ron Clark Construction&Design 7500 West 78th Street Edina,MN 55439 Re: Tax Increment Plan for 2012-1 Housing Tax Increment Financing District(Pillsbury Commons) Dear Ron, As you know, the Planning Commission of the City of Richfield is scheduled to review the Modification to the Redevelopment Plan for the Richfield Rediscovered Project Area (the "Redevelopment Plan Modification") and the Tax Increment Plan for 2012-1 Housing Tax Increment Financing District Pillsbury Commons) (the"TIF Plan")at its meeting on Tuesday,May 29, 2012 to determine whether the Redevelopment Plan Modification and TIF Plan conform to the general plan for the development or redevelopment of the City as a whole. The City's financial advisor, Ehlers & Associates, has not yet received the complete pro forma in order to complete the"but for"test findings set forth in the TIF Plan. The pro forma has been requested on several occasions and was most recently requested in writing by Rebecca Kurtz on May 10,2012 and has also been requested by phone. The Planning Commission agenda packet is scheduled to be sent out today. Because the TIF Plan has not been completed, City staff has determined to remove the consideration of the Redevelopment Plan Modification and the TIF Plan from the Planning Commission's agenda for next Tuesday and will be moved to the Planning Commission's next meeting on June 25,2012, assuming the necessary information is received in time for that meeting. The public hearing on the development's land use application will continue as scheduled. A copy of the TIF Plan must be sent to the County and School District tomorrow for consideration of the fiscal impacts of the development. Although not complete, the HRA staff has determined it is appropriate to send the TIF Plan to the County and School District so that we can remain on schedule for a public hearing in front of the City Council on the TIF Plan on Tuesday,June 26,2012. Please provide the complete pro forma as soon as possible so that the TIF Plan can be completed and we can remain on track with the existing schedule. Please contact me with any questions regarding the foregoing. Sincerely, I I, l gi-1641-11-11X----)' lie A.Eddington Attorney for Richfield Housing and Redevelopment Authority 404607v1 JAE RC125-292 AGENDA SECTION: NEW BUSINESS AGENDA ITEM# 3 REPORT# 10 CASE# 111 PLANNING COMMISSION STAFF REPORT RICHFIELD PC MEETING DATE: MAY 29, 2012 ITEM FOR PLANNING COMMISSION CONSIDERATION: Consideration of a resolution finding that the sale of certain real property conforms to the general plans for the development and redevelopment of the City. RECOMMENDED ACTION: By motion: Continue the Consideration of a resolution finding that the sale of certain real property conforms to the general plans for the development and redevelopment of the City until the June 25, 2012 Regular Planning Commission Meeting. II. BACKGROUND The Planning Commission was originally scheduled to take a number of actions at the May 29 meeting related to the Pillsbury Commons proposal. Those actions included: A Public Hearing to consider rezoning the site to Planned Multi-Family Residential PMR) with a Conditional Use Permit (CUP); A consideration of whether the proposed TIF Plan and related documents are consistent with the Comprehensive Plan, and; A consideration of whether the sale of publicly-owned parcels for inclusion in the development is consistent with the Comprehensive Plan. The item related to the TIF Plan, however, is dependent on the completion of a draft TIF Plan, including the "but-for" findings (and related documents, including a Modification to the Richfield Redevelopment Project Area and a "But-For" Analysis). As is evidenced by the attached letter from HRA Attorney Julie Eddington, staff and consultants are still lacking certain information needed to complete the draft TIF Plan and related documents. The result is that a completed TIF Plan could not be included in the agenda packets delivered to the Planning Commission today so that the Planning Commission could review the TIF Plan before making a determination as to whether the proposed TIF Plan and related documents are consistent with the Comprehensive Plan. At the May 29 Planning Commission Meeting, staff will be recommending that the Commission continue the item(s) related to the TIF Plan until their regular June meeting June 25). Furthermore, as Planning Commissioners have expressed their desire to not make decisions in a "piecemeal" manner, staff is recommending that the Planning Commission Continue the consideration of whether the sale of publicly-owned parcels for inclusion in the development is consistent with the Comprehensive Plan until the June 25 meeting. For these same reasons, staff is recommending that the Public Hearing and Commissioner discussion regarding the Rezoning, Conditional Use Permit and Final Development Plan occur as scheduled (especially since the Public Hearing was advertised and mailed notices were sent), but that a vote on these items be continued until the June 25 meeting as well. Legal Counsel have advised staff that a these land- use items have a bearing on the Finding of Consistency for the land sale. As a result, it would be improper to take any action on the Finding of Consistency of the sale of publicly-owned land until the Planning Commission has taken action on the Rezoning and related items). III. BASIS OF RECOMMENDATION A. POLICY On June 18, 2012 the HRA will consider a request to enter into a Contract for Private Development with the Developer for construction of the proposed 100% affordable 70-unit housing development that includes 18 townhomes and a 52-unit apartment complex, which contemplates certain land sales and conveyances. Minnesota Statutes Section 462.356 requires the Planning Commission to make a finding whether or not land disposition conforms to the Comprehensive Plan of the City. Staff is recommending that the Public Hearing and Commissioner discussion regarding the Rezoning, Conditional Use Permit and Final Development Plan occur as scheduled but that a vote on these items be continued until the June 25 meeting as well. Legal Counsel have advised staff that these land-use items have a bearing on the Finding of Consistency for the land sale. As a result, it would be improper to take any action on the Finding of Consistency of the sale of publicly-owned land until the Planning Commission has taken action on the Rezoning (and related items). B. CRITICAL ISSUES The City Council will hold the first reading of transitory ordinance for the sale of the subject property on June 12, 2012 with the public hearing and second reading of the transitory ordinance and approval of an agreement to sell City land to the Developer on June 26, 2012. The HRA is scheduled to conduct a public hearing and consider the conveyance of the subject property to the Developer on June 18, 2012. The actions by the City Council and HRA would either need to be: a) delayed until after the Planning Commission makes the required Finding of Consistency, or; b) be made contingent upon the Planning Commission's Finding of Consistency at a later date. Members of the Planning Commission have, on several occasions, expressed a desire to not make decisions on this project in a "piecemeal" manner, but rather that all Planning Commission actions be taken at one meeting in concert with one another. C. FINANCIAL N/A D. LEGAL Minnesota Statutes Section 462.356 requires the Planning Commission to make a finding whether or not land dispositions conform to the Comprehensive Plan of the City. Legal Counsel have advised staff that a consideration of the land-use items (which are recommended to be continued until June 25) have a bearing on the Finding of Consistency for the land sale. As a result, it would be improper to take any action on the Finding of Consistency of the sale of publicly-owned land until the Planning Commission has taken action on the Rezoning (and related items). IV. ALTERNATIVE RECOMMENDATION(S) N/A V. ATTACHMENTS Pillsbury Commons Three-Ring Binder (provided to you earlier) VI. PRINCIPAL PARTIES EXPECTED AT MEETING Representative of Ron Clark Construction and Design