STAFF REPORT October 20, 2016 Special Use Permit/Site Plan Application Costco 5800 Park Lake Road

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1 Department of Planning, Building & Development Staff Contact: Darcy C. Schmitt Phone No.: PC Agenda: October 25, 2016 STAFF REPORT October 20, 2016 Special Use Permit/Site Plan Application Costco 5800 Park Lake Road SUBJECT An application from TJ Design Strategies, Ltd., for Site Plan and Special Use Permit approval for the properties at 5800 Park Lake Road and Haslett Road Vacant ( ) to construct a 157,170 sq. ft. Costco retail warehouse with a free standing fueling facility, attached tire center, and three (3) outlots for future users to be determined. Approximately acres of the northern portion of the property is proposed to be rezoned from RM8, Planned Unit Development District to B2, Retail Sales Business District and the remaining acres to the south from RM8, Planned Unit Development District to B4, Restricted Office Business District with Ordinance (This B4 area is proposed for a permanent Conservation Easement). EXISTING CONDITIONS The acre property is located along East Saginaw Highway (M-78) and Park Lake Road. It was formerly known as the Four Winds Golf Course and is currently vacant; however, the old dilapidated parking, vacant clubhouse, and vacant ancillary outbuildings remain on site and will need to be removed. The property received site plan approval under the current zoning in 2003 and In 2003, the property was approved for a multiple-family development with 404 apartment dwellings in 18, threestory buildings. In 2006, the property was approved for a multiple-family development with 170 apartment units within eight, five-story buildings. Both approvals have long since expired. The Raby Drain runs along the southeast boundary of the site at the back side of Wood Creek Subdivision where the property drops several feet in elevation. The applicant s site survey shows wetland areas and indicates where mitigation will be needed if the project were approved. The low areas also have pockets of vegetation surrounding some of the wet areas that provide cover for habitat. A Wolverine Pipeline runs southeast down the site from East Saginaw Highway before it heads east across the site until it traverses the Wood Creek Subdivision. Part of the Pipeline is dangerously close to the surface and is crossing an area proposing to be developed, so as part of the proposal it would need to be moved and placed deeper beneath the surface.

2 October 20, 2016 Page 2 of 13 East Saginaw Highway is within the Michigan Department of Transportation s (MDOT) jurisdiction and Park Lake Road is within the Ingham County Road Commission s (ICRC) jurisdiction. Other roads in close proximity include Merritt Road to the west and Haslett Road running west of Park Lake Road, these roads are within the City of East Lansing s jurisdiction. Haslett Road running east of Park Lake Road is within ICRC s jurisdiction. These jurisdictions will be responsible for reviewing development plans, traffic studies, and engineering plans as they relate to traffic concerns for the proposed development. The Fiesta Charra restaurant located just northwest of this site, is in Meridian Township, and zoned in the Township s C-2, Community Service District. Across Saginaw Highway to the northwest is The Marquette retirement community, zoned in the Township s RA, Single-Family Medium Density District. Across Park Lake Road, to the west, is the former City of East Lansing Department of Public Works facility currently being used for Working Bugs and the Red Cedar Spirits distillery, zoned in our OIP, Office Industrial Park District. Also part of the former Public Works facility property further north is a vacant property just over six (6) acres in size owned by the City of East Lansing and zoned under the B2, Retail Sales Business District and under contract for purchase. South of these sites are several parcels along Haslett Road zoned in the Township s RA, Single-Family Medium Density District. To the southeast is the Wood Creek Subdivision zoned in the Township s RAA, Single-Family Low Density District. The Everett Woods and Everett Farms Subdivisions lay to the east, zoned in the Township s RA, Single-Family Medium Density District. The property to the northeast is zoned under the City of East Lansing s B2, Retail Sales Business District, and is under a 425 Agreement with Meridian Township. The property was originally annexed to the City of East Lansing from Meridian Township under an Act 108 Agreement in 2002 which applied certain conditions to the Agreement that would limit the City s ability to develop the property for commercial uses beyond that for office development. (Meridian Township and the City of East Lansing share control over the conditions under the Agreement) It is currently zoned RM8, Planned Unit Development District (PUD) and R1, Low Density Single-Family Residential District; East Lansing s zoning designations, where a PUD only allows a small amount of office use and no retail use. On July 5, 2016, the Meridian Township s Board and on July 12, 2016 the East Lansing s City Council each approved a resolution amending the conditions of annexation in a way that will allow the property to be considered for rezoning, site plan, and special use permit for the Costco development plan. The amendments apply to this application only and shall be void and revert to the original provisions if the Costco application should fail to be approved by a date certain. PROPOSED DEVELOPMENT The overall site consists of acres with only aces proposed for development and the remaining to be used for a detention pond and conservation easement. The acres is proposed to be rezoned to the City of East Lansing s B2, Business Sale

3 October 20, 2016 Page 3 of 13 District. Based on the attached resolution the site plan must meet or exceed the most restrictive standards of both the City of East Lansing site plan standards applicable to B2, Retail Sales District and the Charter Township of Meridian site plan and development standards applicable to its C-2, Commercial District including, but not limited to, the following Charter Township of Meridian Ordinances as they exist on the date of adoption of the amended 108 Agreement: A. Chapter 22, Article IV Wetland Protection B. Chapter 38, Article VII, Outdoor Lighting C. Chapter 86, Article IV, Division 3, Section Commercial D. Chapter 86, Article VIII, Off-Street parking E. Section , Landscaping Costco Wholesale Warehouse Building (Requires Special Use Permit for SDM and SDD Liquor License and Auto Service Center) The proposed building is one-story and 156,170 square feet including an attached accessory tire center. An entrance to the building is shown on the south side of the building closest to the accessible parking spaces. Cart Corrals are located throughout the parking lot for storage of empty carts. A large portion of the parking for the wholesale store is located at the west side of the building furthest away from the residential neighborhood. A majority of the parking spaces are 20 foot long by 10 foot wide which exceeds the City s requirement for width; however, all of the perimeter parking is only 18 foot long which would be allowed for compact cars as long as the number of overall compact spaces is kept fewer than 30% of the allowed parking spaces. Loading docks are located closest to the main drive access drive off Saginaw Highway at the northeast side of the building. The loading area will be screened with a 3.5 foot wall along the loading dock and additionally with landscaping along the access drive. Trucks will exit the site by circulating to the south perimeter of the site and then exiting north on Park Lake Road to Saginaw Highway. The tire center is located on the southeast side of the building. Costco s typical wholesale store hours of operation are 10:00 am - 8:30 pm weekdays, Saturdays 9:30 am - 6:00 pm and Sunday 10:00 am - 6:00 pm. Receiving hours for the warehouse are typically 5:30 am - 12:00 noon, Monday through Saturday. However, special consideration has been made to adjust receiving hours to begin no earlier than 6:00 am for the proposed development. The product line consists of wearing apparel, dry goods, appliances, furniture, hardware and auto accessories; as well as a broad range of grocery store items, including fresh baked foods, meats, produce, wine, beer, and liquor. Costco also offers other services such as tire installation, prescription filling, one-hour photo developing, hearing aid and optometry exams, and travel planning. A typical Costco store employs approximately fulltime and part-time employees. Costco Fueling Facility (Requires Special Use Permit for Auto Service Center)

4 October 20, 2016 Page 4 of 13 The fueling facility is proposed to have one-way in and one-way out fueling lanes with ample stacking within each lane for 12 fueling pumps with 24 fueling spaces. Two access drives are shown off Park Lake Road for the most convenient access to the facility with additional access available from the wholesale warehouse connector drive. The canopy is proposed to be 17 feet high to the top and to be lit in a downward fashion to prevent light pollution. Costco fueling facility hours are 6:00 am - 9:00 pm weekdays and 6:00 am - 7:00 pm on weekends. Outlots Three outlots will be marketed for future development under the B2, Retail Business District in the same way as the Costco project is being reviewed if the proposed project is approved. The outlots would utilize proposed access points from East Saginaw Highway and Park Lake Road. STAFF REVIEW Site Plan A site plan application must meet the specific use and dimensional standards of the zoning district in which it is to be located and a number of other required conditions for development specified in the Zoning Code. A site plan application must substantially comply with the general standards of review specified in Sec of the Code. A site plan must also comply with other applicable local ordinances and state and federal statutes, and be consistent with the objectives of the City s comprehensive plan. A site plan may be approved subject to certain conditions or modifications necessary to bring the plan into conformance with these requirements, including the approval of any variance that may be granted by the zoning board of appeals. A. Zoning District Standards The B2 District generally permits combined retail-wholesale business, general office or professional office building. Other uses, including auto service centers, are permitted subject to Special Use Permit approval. As indicated on the attached Zoning Analysis form, the application meets the applicable required conditions of the B2 District except where otherwise indicated that it must either meet the Meridian Township Standards or it does not meet either the Township or City Standards. Please see the attached Meridian Township review table listing specific code sections needing to be addressed under the Township s regulations. B. General Standards of Review for Site Plan Approval (For a detailed list of the standards, please see Sec of the Code) (1) General site conditions. The site shall be designed and developed to provide a logical relationship between functional elements, to effectively serve the

5 October 20, 2016 Page 5 of 13 purposes for which it is to be developed, and to be reasonably compatible with surrounding properties. The proposed development is utilizing the perimeter of the acre site for commercial development while proposing to preserve over 50% of the central area in a conservation easement. The site is accessed from a highway and a county road within a short distance to the highway making it convenient for truck delivery and regional customer service. (2) Natural features. The site shall be designed and developed to minimize the disruption or loss of its desirable natural qualities and to enhance its overall appearance. There shall be no net loss in either wetland area or wetland benefits due to development of the site. The applicant is working with MDEQ, the City and the Township to meet the wetland requirements. The applicant is proposing to place a large portion of the site into a permanent conservation easement. This will serve as an undeveloped area adjacent to the Wood Creek Subdivision. (3) Traffic Access. The site shall be designed and developed to provide safe and efficient access for all forms of travel and to minimize impacts on adjacent public facilities. There are several key traffic issues that need to be addressed, including but not limited to East Saginaw access, Park Lake access, and the possible reconfiguration of East Saginaw, Park Lake, and Merritt Road. In addition, there is a planned improvement project along Park Lake Road this year that needs to be coordinated with any proposed improvements. While a Traffic Impact Study has been completed and the City has received some preliminary feedback from the responsible jurisdictions. The applicant s updated site plan reflects the recommendations of the three jurisdictions. Also, see the attached memo and minutes from the Transportation Commission meeting. (4) Utilities and public services. The site shall be designed and developed to facilitate the efficient provision and maintenance of adequate public services. The site does have adequate access to water and sewer infrastructure, as well as other necessary utilities. (5) Environmental protection. The site shall be designed and developed to minimize any risk of pollution of natural resources and to protect the public health, safety and welfare. The applicant is proposing to relocate the Wolverine pipeline to develop the property. (See attached plan). The pipeline is currently close to the surface which

6 October 20, 2016 Page 6 of 13 leaves it vulnerable to damage. If the project is approved the pipeline will be relocated and placed at a safe depth below the surface. The East Lansing Brownfield Redevelopment Authority will be considering a Brownfield Plan to reimburse the costs of moving this pipeline as well as other associated costs. C. Other Applicable Local Ordinances and State and Federal Regulations Prior to the approval of finals plans and the issuance of any construction permits, in addition to complying with all applicable local construction standards and specifications, the applicant will need to secure permits from: Michigan Department of Transportation (MDOT) Ingham County Road Commission (ICRC) Michigan Department of Environmental Quality (MDEQ) City or Township Wetland Permit Ingham County Drain Commission D. Objectives of the Comprehensive Plan This site is designated for residential use up to 8 units per acre in the City s 2006 Comprehensive Plan Future Land Use Map. STAFF REVIEW Special Use Permit (Wholesale Warehouse SDM Liquor License and Auto Center, Fueling Facility Auto Center) A Special Use Permit application may be approved if it meets the requirements for Site Plan approval reviewed above and if the applicant makes an affirmative showing and the City finds that the application meets the following additional standards of review specified in Sec of the Code. A Special Use Permit may also be approved subject to reasonable conditions or certain modifications necessary to ensure that the use conforms to all applicable requirements. A. All uses. Except as may be provided elsewhere in the Zoning Code, each Special Use Permit application shall meet each of the following standards: (1) The proposed use shall be consistent with the purpose of the use district in which it is located and the purpose and provisions of this division. The proposed uses are consistent with the B2 use district because they would provide for a wide range of shopping and service needs for the community in one central area. (2) The site plan for the property shall be approved in accordance with the provisions of section of this chapter.

7 October 20, 2016 Page 7 of 13 The submittal was made properly and the plan has been presented in accordance with Section (3) The proposed size, height, architectural character and placement of new or expanded structures on the site shall be reasonably compatible with the existing or anticipated buildings on adjacent properties. The proposed building is 32 feet in height with a combination of masonry, ribbed metal panel and CMU. The closest commercial developments are the Rite Aid at the corner of East Saginaw Highway and Lake Lansing Road and Fiesta Charra at the corner of Park Lake Road and East Saginaw Highway. Both of these buildings are one-story buildings. The closest residential developments are the Wood Creek Subdivision at the southern boundary of the proposed development and The Marquette retirement community on the north side of East Saginaw Highway. With the proper landscape buffer the distance from the residential structures and the placement of the building can be reasonably compatible with the existing residential buildings. There is no outdoor storage or sales area planned for the site. The placement, size and character of the buildings are reasonably compatible with the existing commercial buildings. (4) Streets and access facilities serving the site shall be able to safely accommodate the expected traffic generated by the proposed use; the use shall not cause excessive traffic congestion or delays, obstruct access to adjacent properties, or imperil the safety of motorists, pedestrians or bicyclists. Three jurisdictions reviewed the traffic study and other traffic information and the applicant has incorporated the recommendations into the revised site plan. Internal sidewalks are proposed to safely connect the development areas. There is currently an outdoor bicycle parking area shown on the plan; however, the number of spaces are not indicated. The applicant indicated that there is interior space for staff to store bicycles; 50 spaces are required per Meridian Township requirements and will need to be provided for both inside for staff and outside for customers. (5) The proposed use shall not adversely affect the use and enjoyment of adjacent properties by generating excessive noise, vibration, light, glare, odors or any other form of pollution or nuisances. Costco s typical wholesale store hours of operation are 10:00 am - 8:30 pm weekdays, Saturdays 9:30 am - 6:00 pm and Sunday 10:00 am - 6:00 pm. Receiving hours for the warehouse are typically 5:30 am 12:00 noon, Monday thru Saturday. However special consideration has been made to adjust receiving hours to begin no earlier than 6:00 am for the proposed development. The applicant has provided a lighting plan to meet the requirements of the Meridian

8 October 20, 2016 Page 8 of 13 Township s Lighting Ordinance to prevent light pollution. The tire service center overhead doors are located on the southeast side of the building away from the neighborhood. Meridian Township has offered to work with the applicant to develop a landscape buffer along the south and east sides of the parking lot to screen and reduce noise from the adjacent residents. (6) The proposed use shall not materially diminish the economic value of adjacent properties or the city as a whole. The proposed use is not expected to materially diminish the economic value of adjacent properties, the city or the township as a whole. It will bring convenient services to the area, and approximately 175 to 200 fulltime and part-time jobs to the community. (7) The proposed use shall not materially diminish the privacy, safety, security or enjoyment of any residential dwelling or residential neighborhood within the vicinity of the site. The development will maintain over 400 feet of open space as a natural buffer between the development and the Wood Creek Subdivision. In addition the proposal will further buffer the development with a landscape screen along the south and southeast side of the development. (8) The proposed use shall be located with direct access to and frontage on a major street as designated in the major street plan, or within an area designated for adaptive reuse in the city center element of the comprehensive plan. The development has direct access to and frontage on both East Saginaw Highway and Park Lake Road. B. Specific uses. Businesses selling alcoholic beverages. (Costco SDM and Liquor License) In addition to the standards above, to address their unique characteristics, certain uses shall also meet the applicable standards below. The following additional standards shall apply to restaurants and businesses licensed or to be licensed for the sale of alcoholic beverages or alcoholic liquor for consumption on or off the premises. (1) The establishment shall not be located in such proximity to churches, elementary, or secondary schools, child development centers, or community centers so as to annoy, injure, offend, disrupt, disturb, or interfere with the activities conducted thereon or the persons conducting, attending, or traveling to or from such premises. There is one church on the northeast side of Saginaw Highway; however, there is no indication that the proposed development would be problematic. Staff is not

9 October 20, 2016 Page 9 of 13 aware of any elementary, or secondary schools, child development centers, or community centers in close proximity. (2) The establishment shall not cause or continue an undue concentration of similar uses in the neighborhood such that liquor establishments and trade become a dominant influence or feature of the district or neighborhood. Red Cedar Spirits is a distillery located off Merritt Road where package liquor is sold and it is also sold and served on-site. Fiesta Charra is a restaurant where liquor is also served on-site. These are the only liquor establishments in the neighborhood. (3) The establishment shall be designed, operated, and maintained at all times consistent with responsible business practices and so that no excessive demands shall be placed upon public safety services, nor any excessive risk of harm to the public health, safety, or sanitation, interference with vehicular or pedestrian traffic or parking, or the continuance or maintenance of any unlawful conduct, public nuisance, or disorderly conduct either within the establishment or on or about the adjacent businesses and public streets, alleys, parks, parking facilities, or other areas open to the public. The establishment shall make reasonable effort to report to authorities any unlawful conduct that is observed from the premises. This will be a requirement of the special use permit and be listed as a condition of approval to be registered in the Memorandum of Special Use Permit. SUMMARY COMMENTS In the matter of the request from TJ Design Strategies, Ltd., for the properties at 5800 Park Lake Road and Haslett Road Vacant ( ), to construct a 157,170 sq. ft. Costco retail warehouse with a free standing fueling facility, attached tire center, and three (3) outlots for future users to be determined. Motion to recommend City Council approve the proposed Site Plan and Special Use Permit for the following reasons.. (Insert specific Planning Commission reasons here) Subject to the following conditions (Insert specific Planning Commission conditions here) 1. Water and sanitary sewer extensions and connections shall be approved by the City Engineer in accordance with all applicable State and local regulations. 2. The storm water detention facility shall be designed to accommodate a 100-year storm; the required calculations and storm water management plan shall be approved by the City Engineer.

10 October 20, 2016 Page 10 of Final grading, soil erosion control, paving and utility plans for the site shall be approved by the City Engineer in accordance with all applicable local requirements. 4. The required permit(s) shall be obtained from the City of East Lansing and the Michigan Department of Environmental Quality if any filling or excavation is to be done within regulated wetland/flood plain areas. 5. The applicant shall construct an 8 foot wide sidewalk along Saginaw Highway R.O.W. and 5 foot wide sidewalk shall extend from the public sidewalk to the entrance of the building(s). 6. Final landscaping and screening details shall be designed in accordance with section of the City Code and any additional landscaping that is requested as a condition of the overall site plan approval. A final landscape plan shall be approved by the Planning and Zoning Administrator and signed-off on prior to installation. 7. Bike racks and interior storage shall be installed sufficient to accommodate at least 50 bicycles. 8. Site lighting shall be installed in accordance with the requirements of Chapter 38. Article VII. Outdoor Lighting, of the Meridian Township Code. 9. Trash containment shall be constructed and containers screened in accordance with the requirements of section of the City Code. 10. Trash and Recycling containers shall be provided in accordance with section of the City Code. 11. The required permit(s) shall be obtained from the Department of Planning, Building, and Development for all exterior signs, in accordance with Chapter 32 Signs of the City Code. 12. The establishment shall be designed, operated, and maintained at all times consistent with responsible business practices and so that no excessive demands shall be placed upon public safety services, nor any excessive risk of harm to the public health, safety, or sanitation, interference with vehicular or pedestrian traffic or parking, or the continuance or maintenance of any unlawful conduct, public nuisance, or disorderly conduct either within the establishment or on or about the adjacent businesses and public streets, alleys, parks, parking facilities, or other areas open to the public. The establishment shall make reasonable effort to report to authorities any unlawful conduct that is observed from the premises.

11 October 20, 2016 Page 11 of The project shall be designed and developed in accordance with all applicable State and local statutes, codes and regulations. 14. The applicant shall place the acres of property zoned B4 into a conservation easement. 15. A Memorandum of Special Use Permit shall be filed with the County Register of Deeds per section of the City Code. 16. Per the Public Art Requirement Supplement signed by the applicant, a monetary donation will be made in lieu of art, therefore $25,000 must be donated to the Public Art fund upon submission of the building permit.

12 October 20, 2016 Page 12 of 13 ZONING ANALYSIS The standards listed are provided from the City of East Lansing s B2, Retail Sales Business District unless otherwise labeled Meridian Township Standard where it is reviewed under the more stringent Township standard as required by the resolution. Development: Costco Wholesale Warehouse 156,170 sq. ft. Zone: B2 Standard Proposed Conformity Min. Site Area: None 16 acres Yes Min. Lot Width/Frontage: None Approx. 1,100 feet (East Saginaw Highway) Yes Max. Building Height: 2-stories 1-story Yes 36 feet 32 feet Yes Max Building Cover None 22.3% Yes Max. Ground Cover None 88% Yes Min. Bldg Setbacks: Rear (SE) Yard 0 feet 250 feet Yes Front (NW) Yard 0 feet 60 feet Yes Side (NE) Yard 0 feet 100 feet Yes Side (SW) Yard 0 feet 340 feet Yes Parking Spaces: Min. Required spaces Yes Max. Permitted spaces Yes (Meridian Township Standard) Max. Small Spaces spaces Yes Min. Barrier Free Spaces spaces Yes ( 2% of Total) Min. Bike Spaces (Meridian Township Standard) 50 Outside location shown but number of spaces not indicated Yes? Min. Parking Setbacks: Rear Yard 8 feet 10 feet Yes Front Yard 3 feet 20 feet Yes Side (SW) Yard 3 feet 10 feet Yes

13 October 20, 2016 Page 13 of 13 Development: Costco Fueling Facility Zone: B-2 Standard Proposed Conformity Min. Site Area: None 3.06 acres Yes Min. Lot Width/Frontage: None Approx. 320 feet (Park Lake Road) Yes Canopy Height: 36 feet 17 feet Yes Max Building Cover None 3% Yes Max. Ground Cover None 32% Yes Min. Bldg Setbacks: Rear Yard 0 feet 140 feet Yes Front Yard 0 feet 85 feet Yes Side Yard 0 feet 65 feet Yes Side Yard 0 feet 211 feet Yes Parking Spaces: Min. Required 1 2 Yes Min. Barrier Free Spaces 1 1 Yes Min. Bike Spaces 1 1 Yes Min. Parking Setbacks: Rear yard 8 feet NA Yes Front Yard 3 feet NA Yes Side Yard 3 feet NA Yes

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