MEMORANDUM. DATE: August 31, Honorable Mayor and City Councilmembers Patrick Klaers, City Administrator. Matthew Bachler, Associate Planner

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1 NEW BUSINESS 8B MEMORANDUM DATE: August 31, 2015 TO: FROM: Honorable Mayor and City Councilmembers Patrick Klaers, City Administrator Matthew Bachler, Associate Planner SUBJECT: Planning Case # Applicant: Hemisphere Restaurant Partners Property Location: Lexington Avenue North Request: Final Planned Unit Development Requested Action Motion to approve Planning Case for a Final Planned Unit Development (PUD) for Phase III of the Arden Plaza Master PUD at Lexington Avenue North, based on the findings of fact and submitted plans, as amended by the sixteen (16) conditions in the August 31, 2015, Report to the City Council. Background The City approved a Master PUD for the Arden Plaza retail center at County Road E and Lexington Avenue in 2009 (Planning Case ). The approved plans included the demolition of an existing office building and the phased redevelopment of the site to be completed in three stages. A total of 97,035 square feet of retail and commercial building space was approved at the time. For each successive phase of the redevelopment, a Final PUD plan is required to verify general conformance with the Master PUD and to provide more detailed development plans for the phase to be implemented. The Master PUD was amended in 2011 to include a revised subdivision plan and updated development plans for the existing Walgreens Pharmacy (Planning Case ). Phase I of the Master PUD was completed in 2012, and included the construction of the Walgreens building, modifications to parking and circulation within the retail center, and the construction of stormwater basins required for the proposed build-out of the site. Page 1 of 8

2 The City approved a second amendment to the Master PUD and a Preliminary Plat in March 2015 for the subdivision of Lot 3, where the existing retail center is located, into three smaller lots (Planning Case ). Planning Case also included modifications to the retail center parking lot and an increase in the Phase III building footprint. The new plat is titled Arden Plaza 2 nd Addition, and Lot 1 within the plat is proposed for the Tavern Grill development. The Master PUD specifically identifies the Lexington Avenue site where the Tavern Grill development is proposed as Phase III. It should be noted that Phase II of the Master PUD has not yet been completed. Phase II will include the development of the parcel on County Road E adjacent to the Walgreens pharmacy for a 6,000 square foot user. Arden Plaza, LLC continues to market this site to potential buyers and tenants. Overview of Request Hemisphere Restaurant Partners has requested a Final PUD for Phase III of the Arden Plaza Master PUD to develop Lot 1, Arden Plaza 2 nd Addition for a sit-down restaurant called the Tavern Grill Restaurant and Bar. The Master PUD Site Plan shows Phase III being developed as a 20,136 square foot retail building. The proposal by Hemisphere Restaurant Partners would result in an overall lower density development on the site than what was originally approved for Phase III. The development plans are in substantial conformance with the Master PUD plans. Hemisphere currently operates three Tavern Grills in the Twin Cities metro, with locations in Edina, Woodbury, and Blaine. The proposed Tavern Grill in Arden Hills would be similar to these other restaurants and would provide a relaxed, up-scale atmosphere. The development would include the restaurant building, which would have a footprint of 9,500 square feet, and an attached 3,050 square foot outdoor patio area for seasonal seating. The proposed site design orients the front of the restaurant towards the other buildings within the Arden Plaza retail center. The main entrance would be located at the southwest corner of the building and feature a prominent tower comprised primarily of transparent glass. The exterior materials on the building would include stucco, stone, and wood, and each façade would have at least 20 percent transparent window coverage. A variety of shade and ornamental trees, shrubs, and perennial plantings would be focused around the perimeter of the building and patio area and would also provide screening of trash collection and utility areas. Safe pedestrian connections will be created with sidewalks that connect to the public sidewalk on Lexington Avenue and the internal sidewalks within the retail center. Plan Evaluation A full evaluation of the proposal was presented to the Planning Commission at their regular meeting on August 5, The staff report to the Planning Commission on this case is included as Attachment I. The Planning Commission recommended that the developer provide additional Page 2 of 8

3 landscaping along the driveway to better screen the service entrance and trash collection area at the rear of the building. The Landscape Plan has since been updated to include 13 Arborvitae plantings along the driveway (Attachment D). The following section provides a summary of the areas where flexibility is needed from the underlying Zoning Code standards through the PUD process. The proposal exceeds the Zoning Code requirements in several areas, including perennial planting coverage and window transparency coverage. Building Materials For properties in the B-2 District, at least 75 percent of exterior building materials are required to be brick or tile masonry, stone, decorative concrete plank, or transparent glass. Accent materials may include metal, wood, split faced block, stucco, or EIFS. Approximately 40 percent of the building façade area would be stucco. Of the remaining façade area, stone would comprise 21 percent, transparent glass 21 percent, and wood 15 percent. Stucco would be used primarily on the kitchen and upper portions of the building and a higher percentage of stone, wood, and transparent glass would be used on the bar and dining portions of the building. The applicant has noted that stucco would provide a more neutral building material that will accentuate the stone and wood materials. Also addressed in the narrative is the application process that would be used for the stucco to ensure its long-term durability. The Planning Commission was supportive of the proposed building materials. Building Design At least 50 percent of the largest building on each site is required to be constructed at the front setback line of 20 feet. In this case, the Tavern Grill would be located 36.2 feet from the front setback line along Lexington Avenue. Given the elevation difference between Lexington Avenue and the development site, there are existing conditions that prevent the applicant from satisfying this requirement. Parking Parking requirements are determined by the type of land use proposed for a site. For restaurant uses, one parking space is required for every two seats. The Tavern Grill would include 256 permanent indoor seats and approximately 106 seasonal outdoor seats. Based on the required ratio, 181 parking stalls would need to be provided. The Zoning Code does not distinguish between indoor and outdoor seating, but a lower parking requirement for the outdoor seating may be appropriate considering this will only be a seasonal use. The proposal includes the construction of ten parking stalls on the lot, as shown in the Master PUD. However, an existing Reciprocal Easement Agreement that covers the separate lots within the retail center provides for shared parking across the entire site. With the completion of Phase III, a total of 405 parking stalls could be used by Tavern Grill customers. The majority of these stalls would be within 400 feet of the entrance to the restaurant. Page 3 of 8

4 The applicant has noted that shopping centers typically rely on a parking ratio of 4.0 stalls per 1,000 square feet of gross leasable area. This is supported by a study completed by the National Parking Association and the Urban Land Institute, titled Dimensions of Parking, which recommends stalls per 1,000 square feet of building space in shopping centers less than 600,000 square feet in size. According to the Parking Generation study completed by the Institute of Traffic Engineers (4 th Edition), the average peak parking demand for shopping centers is 2.04 to 2.94 vehicles per 1,000 square feet of building area, depending on the day of the week. At the 85 th percentile, the study showed demand of 2.39 to 3.90 vehicles per 1,000 square feet of building area. The 405 parking stalls that would be provided at the retail center equates to a ratio of 4.96 stalls per 1,000 square feet of gross building square footage. The Planning Commission was supportive of staff s conclusion that 405 parking stalls will be adequate to accommodate demand following the completion of Phase III. Going forward, staff recommends that the City evaluate parking needs for the retail center based on the ratio in the Dimensions of Parking study of stalls per 1,000 square feet of building space. This will allow for an easier evaluation of parking needs for Phase II of the Master PUD and any future redevelopment on the site. Once all three phases have been completed, the retail center will include 440 parking stalls, which will be a ratio of 5.25 stalls per 1,000 square feet of building space. Traffic Study and Transportation Improvements A traffic study was completed in 2007 to evaluate the full build-out of the Arden Plaza retail center. An additional study was completed in 2008 in conjunction with the B-2 District Guiding Plan that looked at the redevelopment of Arden Plaza in addition to other development opportunities along County Road E. The Phase III development proposal is in substantial conformance with the development scenarios evaluated in these traffic studies and an additional study was not requested at this time. The application does not propose any alterations to the internal circulation plan as shown in the previously approved Master PUD. As part of the City s approval of the Master PUD in 2009, Arden Plaza was required to construct certain transportation improvements. One condition was that the development of Phase III would be contingent on the construction of a traffic signal located 650 feet west of the County Road E and Lexington Avenue intersection. This traffic signal was proposed as part of the transportation improvements included in the Guiding Plan for the B-2 District. The signal was recommended based on the assumption that the Holiday Inn site north of Arden Plaza would be redeveloped into a 95 apartment unit building and a 120,000 square foot office building. The 2007 Arden Plaza traffic study did not indicate that a new signal would be warranted. At the time, Ramsey County also did not support the traffic signal due to spacing between the Lexington Avenue intersection and the proposed signal. City staff discussed the Phase III development plans with the Ramsey County Public Works Department and a letter from the County addressing traffic control on County Road E has been Page 4 of 8

5 included in Attachment F. The letter notes that the recently completed County Road E improvements include a dedicated left-turn lane to serve Arden Plaza and restricted turns from the property to the north. The County believes that these initiatives will adequately serve the expected traffic and that a traffic signal at Arden Plaza is not needed at this time. The City will continue to monitor traffic operations along County Road E and additional transportation improvements may be required for Phase II of the Arden Plaza Master PUD. Additional Review City Engineer and Building Official The City Engineer and City Building Official have reviewed the submitted plans and did not have any comments at this time. Ramsey County Public Works Department The Ramsey County Public Works Department has reviewed the plans and provided staff with comments in the letter dated July 9, 2015 (Attachment G). Lake Johanna Fire Department The Lake Johanna Fire Marshal has reviewed the plans and provided staff with his comments in the letter dated July 13, 2015 (Attachment G). Final plans shall be subject to approval by the Fire Marshall prior to the issuance of a building permit Rice Creek Watershed District Rice Creek Watershed District (RCWD) is currently reviewing a permit application for the development proposal. Rain gardens on the north and east sides of the site have been added to address on-site stormwater management requirements. A RCWD permit will be required prior to the issuance of any development permits. Findings of Fact The Planning Commission reviewed Planning Case at their regular meeting on August 5, Draft minutes from the meeting are included in Attachment J. The Planning Commission offers the following findings of fact for consideration: 1. Hemisphere Restaurant Partners has requested approval of a Final PUD for Phase III of the Arden Plaza Master PUD on Lot 1, Arden Plaza 2 nd Addition. 2. The original Master PUD for the development was approved in Planning Case # Subsequent PUD Amendments were approved in Planning Case # and Planning Case # A Preliminary Plat for Arden Plaza 2 nd Addition was approved in Planning Case # Final Plat approval was conditioned on building improvements currently under construction by Arden Plaza, LLC. Page 5 of 8

6 4. The applicant has proposed a 9,500 square foot restaurant building with an attached 3,050 square foot outdoor patio area. 5. The development proposal is in substantial conformance with the approved Arden Plaza Master PUD and the site improvement requirements contained therein. 6. The Arden Plaza retail center and Phase III development site are located in the B-2 General Business District. 7. The City has adopted the Guiding Plan for the B-2 District that outlines future development principals for the area. 8. The City has adopted Design Standards for the B-2 District within the Zoning Code. 9. The Final PUD for Phase III is in substantial conformance with the requirements of the City s Zoning Code. 10. The Final PUD for Phase III is in substantial conformance with the Guiding Plan for the B-2 District. 11. The Final PUD for Phase III is in conformance with the requirements of the City s Sign Code. 12. The Final PUD for Phase III is in conformance with the City s Comprehensive Plan. 13. The PUD process allows for flexibility within the City s regulations through a negotiated process with a developer. 14. Where the plan is not in conformance with the City s Zoning Code, flexibility has been requested by the applicant and/or conditions have been placed on an approval that would mitigate the nonconformity. 15. Flexibility is needed from the standards in the City s Zoning Code in terms of the proposed exterior building materials, building design, and parking requirements. 16. The proposal exceeds the standards in the City s Zoning Code in terms of perennial plantings and window transparency coverage. 17. The application is not anticipated to create a negative impact on the immediate area or the community as a whole. Recommendation The Planning Commission reviewed this request and unanimously (5-0) recommends approval of Planning Case for a Final PUD for Phase III of the Arden Plaza Master PUD at Lexington Avenue North, based on the findings of fact and the submitted plans in the August 31, 2015, Report to the City Council, as amended by the following sixteen (16) conditions: 1. The Developer shall continue to abide by the conditions of all previous Master PUD Agreements, permits, and reviews, except as hereinafter amended. 2. The project shall be completed in accordance with the submitted plans as amended by the conditions of approval. Any significant changes to these plans, as determined by the City Planner, shall require review and approval by the Planning Commission and the City Council. Page 6 of 8

7 3. The Developer shall obtain a building permit within one year of the Final PUD approval or the approval shall expire, unless extended by the City Council prior to the approval s expiration date. Extension requests must be submitted in writing to the City at least 45 days prior to the expiration date. 4. A Development Agreement shall be prepared by the City Attorney and subject to City Council approval. The agreement shall be executed prior to the issuance of any development permits. 5. Prior to the issuance of a building permit, the Arden Plaza 2 nd Addition Final Plat shall be recorded with Ramsey County. 6. Prior to the issuance of a building permit, a copy of any necessary supplemental declaration between Hemisphere Restaurant Partners and Arden Plaza, LLC addressing site operation issues, such as driveway maintenance, shared parking, and drainage, shall be provided to the City. 7. The Developer shall submit a financial surety in the amount of 125 percent of the estimated costs of site improvements including grading, utilities, and paving, prior to the issuance of any development permits. The financial surety shall be in the form of a letter of credit issued by a FDIC-insured Minnesota bank, and be in a form acceptable to the City. The purpose of the letter of credit is to ensure that site improvements are completed in the event that the developer defaults on the Development Agreement. 8. The Developer shall submit a cash escrow in the amount of 25 percent of the estimated costs of site improvements including grading, utilities, and paving, prior to the issuance of any development permits. The escrow will be used for City costs related to review, approval, and inspection of site improvements or any costs incurred by the City in the event of a developer default. 9. The Developer shall submit a financial surety in the amount of 125 percent of the estimated costs of landscaping prior to the issuance of any development permits. The financial surety shall be in the form of a letter of credit issued by a FDIC-insured Minnesota bank. The purpose of the letter of credit is to ensure that landscaping is completed in the event that the developer defaults on the Development Agreement. The City will hold the letter of credit for two years after the installation of landscaping. The letter of credit should not expire during the two-year period. 10. The Developer shall submit a cash escrow in the amount of 25 percent of the estimated costs of landscaping prior to the issuance of any development permits. The escrow will be held by the City for two years after installation of landscaping and used for City costs related to review, approval, and inspection of landscaping, or developer default. 11. Final construction plans shall be subject to approval by the Building Official and Fire Marshall prior to the issuance of a building permit. 12. The Developer shall provide the City with a copy of the Rice Creek Watershed District permit for the project prior to the issuance of any development permits. 13. Final grading, drainage, utility, and site plans shall be subject to approval by the City Engineer and City Planner prior to the issuance of a Grading and Erosion Control Permit or other development permits. 14. The Developer shall obtain a right-of-way permit from Ramsey County for the sidewalk construction along Lexington Avenue. Page 7 of 8

8 15. Prior the issuance of a Certificate of Occupancy for the Phase III building, the six-foot wide concrete sidewalk along Lexington Avenue shall be constructed in its entirety as shown on the PUD Master Site Plan. 16. All mechanical equipment, whether ground-mounted or roof-mounted, shall be screened from ground-level view of public streets. Wood screening shall not be permitted. Options 1. Approve the proposal as submitted. 2. Approve the proposal with conditions (Recommended Action). 3. Deny the application with reasons for denial. If the City denies the petitioners request, it must state in writing the reasons for the denial at the time it denies the request. 4. Table for additional information. Resident Comments Notice of the application was mailed to property owners within 350 feet of the subject property. Staff received an from a resident at the Hunters Park condominium development at 4 Pine Tree Drive, dated August 5, 2015, in support of the Tavern Grill proposal. A copy of the is included in Attachment H. Deadline for Agency Actions The received the completed application for this request on July 24, Pursuant to Minnesota State Statute, the City must act on this request by September 22, 2015 (60 days), unless the City provides the petitioner with written reasons for an additional 60 day review period. The City may, with the consent of the applicant, extend the review period beyond the initial 120 days. Attachments A. Land Use Application, Project Narrative, and Building Material Calculations B. Site and Aerial Maps C. Existing Conditions Photographs D. Civil Plan Set E. Architectural Plan Set F. Letter from Ramsey County Public Works Department - Traffic Control on County Road E, dated June 29, 2015 G. Additional Review Comments (Ramsey County Public Works Department, Lake Johanna Fire Department) H. Public Comments I. Planning Commission Report, August 5, 2015 J. Draft Planning Commission Minutes, August 5, 2015 Page 8 of 8