John W. Weingardt, President C. Pete Peterson, Vice President Scott A. Faultless Stuart F. Easley David C. George Michael L. Colby Eric C. Moeller TOWN JUDGE Daniel E. Henke CLERK-TREASURER Linda Gaye Cordell TOWN MANAGER Scott A. Fadness PUD Text Amendment Department of Community Development Staff Report January 20, 2015 City Council, 3 rd Reading Petition Number: Petitioner: Subject Site Address: Action Request: Current Zoning: Current Land Use: Approximate Acreage: Project Manager: Exhibits: 2-TA-14 Northwest Corner 116 th & Olio (Kroger) PUD Text Amendment The Kroger Co. Northwest corner of 116 th Street and Olio Road Request to approve an ordinance amending the Northwest Corner 116 th & Olio PUD, located at the northwest corner of 116 th Street and Olio Road, to accommodate a new Kroger grocery store 3 rd Reading on Ordinance #110514B PUD-C, R2 Commercial, vacant land, single-family residential 21.37 acres currently; Amendment to expand PUD to 28.17 acres Adam Zaklikowski, AICP Planner II - Maps (Aerial and Zoning) - Plan Commission Meeting Minutes November and December 2014 - Petitioner s Packet - Ordinance #110514B (New PUD ordinance) - 2005 Ordinance #070605D (Existing, redlined) - 2001 Ordinance #080601F (Existing, redlined) - Traffic Impact Study - Zoning Commitments PETITION OVERVIEW: The Kroger Company desires to construct a larger grocery store near the northwest corner of 116 th Street and Olio Road. In order to accommodate a larger store, multiple sections of the existing Planned Unit Development (PUD) document (approved 2001, amended 2005) must be altered. The new store would have a footprint of approximately 119,500 SF (123,600 SF total size, includes a 4,100 SF 2 nd floor management office area). The larger store would be located behind the current store, to the west, on a portion of property owned by Taylor Woods, LLC (5.97 acres). The existing 65,000 SF store would be Page 1 of 8
demolished. An adjacent property, owned by North Shore Woods, LLC (0.88 acres) would contain a portion of the detention pond. As part of this project, the Town is also reviewing an Annexation, Rezone (from R2 to PUD-C), and a Primary Plat. This petition seeks to incorporate land (to be rezoned via separate action) into the Northwest Corner, 116 th Street and Olio Road PUD. PETITION HISTORY: A PUD Text Amendment request was originally presented to the Town Council on March 3, 2014. However, Town Council did not conduct 1 st Reading for the requested Annexation, Rezone, and PUD Text Amendment because of concerns with the size of the new Kroger store. First Reading was conducted by the Town Council on November 5, 2014. The item appeared before the Plan Commission on November 12, 2014. The item was discussed extensively (see Public Comments section on page 6) and was continued to the December 9, 2014 Plan Commission Meeting so that a traffic study could be completed for the project. Please refer to Traffic Study comments section on page 6 for a summary. At the December 9 th meeting, there was further discussion and the Plan Commission issued a favorable recommendation (7-2 vote) to the Town Council with conditions. Please refer to the Plan Commission Comments section on page 8 for a summary. The Town Council conducted 2 nd Reading on December 15, 2014. PETITION SPECIFICS / STAFF ANALYSIS: Below is a listing of the proposed amended development standards of the PUD. Please refer to the attached Ordinance #110514B for the specific language proposed. Also attached are the existing 2001 and 2005 ordinances with the proposed changes redlined for reference. 1. Section 3(B) The petitioner seeks to amend the maximum size allowed for the anchor tenant only (Kroger) from 65,000 SF to 125,000 SF. They desire to amend the maximum square footage allowed for retail in Parcel A from 90,000 SF to 160,000 SF. 2. Section 3(C) The petitioner seeks to amend the extent of the commercial area from 1,000 feet of the center of the intersection at 116 th Street and Olio Road to 1,400 feet. This is necessary because the new store would be further west of the intersection than 1,000 feet. 3. Section 3(I) On November 12 th, the Plan Commission expressed concern about the drive-thru attached to the new Kroger. To clarify, there is no current prohibition on drive-thrus (fast food and drive-in restaurants are prohibited, but not drive-thrus). The petitioner seeks to add a provision clearly allowing two drive-thru lanes and a bypass lane adjacent to the Kroger for pharmacy and bank uses only (note, a bank is not anticipated in the store at this time but Kroger desires to have the flexibility to have a drivethru for it in the event one is placed inside the store in the future). Three drive thru lanes were shown on the Concept Site Plan previously. 4. Section 4(A)(4) The petitioner seeks to increase the height limitation from 35 feet to 40 feet. The majority of the building is proposed to be 29 feet tall. However, the gable peaks, which were added to the design to enhance aesthetics, would feature a roofline midpoint of approximately 40 feet. Since the Page 2 of 8
November 12 th Plan Commission meeting, the language was clarified to state that only parapet walls and pitched roofs shall be allowed up to the 40 maximum height; otherwise, the building must be no more than 35 maximum height. Also, it was clarified that the maximum square footage of the 2 nd story of the Kroger store be no more than 10,000 SF. At the December 9 th meeting, Plan Commission expressed a desire to allow the height increase for only the anchor tenant (Kroger), which was added as a condition. This has also been reflected in the PUD text. 5. Section 4(B)(7)(e) Staff seeks a prohibition regarding the use of standing seam metal roofs for the new building. This will allow for shingled roofs instead, which will complement the remainder of the existing site. 6. Section 4(B)(9)(a)(10) The petitioner seeks to add allowances for roll up doors (which are intended to contain glass windows) to be placed on the front of the building. This is to allow for seasonal sales near the front of the building. 7. Section 4(B)(10)(f) The petitioner had shown a trail along the rear of the site. However, after the November 12 th Plan Commission meeting, staff expressed concern that this trail was not in an optimal location for pedestrians (view of loading docks). Staff felt it more appropriate to simply provide a connection from 116 th Street/detention pond area to the front of the store, and northward to 118 th Street. Kroger has updated the concept plan to reflect this change. The language in the ordinance allows for the exact location to be determined during the Technical Advisory Committee (TAC) process. 8. Section 4(B)(10)(g) The petitioner had proposed a reflection area near the planned detention pond at the southwest corner of the site. After the November 12 th Plan Commission meeting, staff sought to document in the PUD the specific items that will be provided per the Plan Commission s recommendation. Thus, this new provision states that 1.) a pedestrian path be provided around the perimeter of the pond, 2.) a decorative water fountain be provided, 3.) a 20 diameter brick paved element be provided for the area, and 4.) enhanced landscaping to provide visual interest and screening. 9. Section 4(B)(11) At the November 12 th Plan Commission meeting, some individuals from the public expressed concern about noise from deliveries. The existing PUD prohibits trash removal, service vehicles, deliveries, parking lot sweepers, etc. (except snow removal) from operating between midnight and 6:00 a.m. In response to the concerns, at staff s request, the petitioner expanded the prohibited hours from 10:00 p.m. to 7:00 a.m. This change has been made to the ordinance. 10. Section 4(B)(12) The petitioner stated at the November 12 th Plan Commission meeting that the B Shops building cannot be acquired and demolished, and therefore must stay. Since this is the case, staff desired to add a provision to the PUD formally requiring four-sided architecture. The architectural style, materials, color and design of the front elevation shall be applied to all elevations of the structure. This was based on language in the current Unified Development Ordinance (UDO). 11. Section 4(C)(1) Staff seeks to prohibit exposed raceways on wall signage, which will enhance aesthetics of any new signage. 12. Section 4(E)(1) Since the November 12 th Plan Commission meeting, staff sought to address the landscaping requirements applicable to the project. The current language in the PUD defaults to a Town Zoning Ordinance in effect before the current UDO. Since many standards regarding the number of trees and shrubs have increased as a result of the newer UDO, staff sought to clarify that the current Page 3 of 8
UDO landscaping standards shall apply to the new development. In the event of a conflict between the existing PUD standards and the UDO standards, the most restrictive or highest standard shall prevail. 13. Section 4(E)(5) At the request of staff, landscaped peninsulas and islands were placed throughout the parking area. Staff wanted to ensure that these items remain in the project design. Therefore, since the November 12 th Plan Commission meeting, an item was added to require that each row of parking greater than 5 spaces shall incorporate at least one center landscaped island or peninsula, minimum dimension 10 x 20, and shall contain a tree. This will ensure a suitable break-up of the large asphalt parking lot. Square Footage At the March 3 rd 1 st Reading, members of the Town Council expressed concerns with the size of the new store and felt that an increase from the existing 65,000 SF store to a 123,000 SF store would make the complex incompatible with a neighborhood oriented commercial area. Kroger has not changed the size of the store since the initial request but they point out that it is much smaller than a Meijer (225,000 SF), Walmart (190,000 SF), and Target (174,000). They state that the new store is intended to have additional offerings, such as patio furniture, but it is not intended to be a superstore akin to a Meijer, Walmart, or Target. Below is a table provided by Kroger which displays the allocation of the floor space, both existing and proposed: Parking Staff initially expressed concern about the sizable addition of surface parking. In response, Kroger reduced the amount of parking. They added additional landscaped islands and a main drive aisle down the center of the project from the Olio Road entrance to the front of the store, which improves vehicular flow. After the November 12 th Plan Commission meeting, at staff s request, the petitioner added a sidewalk and a landscaped median along the boulevard entrance. Some parking along the north side of the boulevard was moved to the north side of the new building. Staff will continue to work with the petitioner on the parking layout as part of Page 4 of 8
the Technical Advisory Committee (TAC) process during the Improvement Location Permit (ILP) review. Below is a breakdown of the parking calculations, per the concept site plan: Existing Proposed (Feb 2014) Proposed (Sep 2014) Parking Spaces 487 771 687 Parking Ratio 4.41 spaces per 1,000 SF 4.69 spaces per 1,000 SF 3.94 spaces per 1,000 SF At 1 st Reading on November 5 th, Councilman David George recommended demolition of the B-Shops building and reconstruction of an L-shaped building to the south. This would open up the parking area and create less of an awkward site layout. Staff had suggested a similar proposal previously. However, at the Plan Commission meeting on November 12 th, Kroger indicated that this was not possible because they do not own the B-Shops. Architecture Staff initially expressed concern about the architecture of the new Kroger store. The original design for the new store was a prototype. However, the revised design features some pitched roofs, and more articulation with more variety and color of materials. Staff expressed concern about the view of the rear of the existing B-shops building to the south of the current store, which would remain. Kroger has presented some renderings of possible upgrades to this building which appear to include new paint, awnings on rear doors, and a masonry screen wall. At staff s request, a provision was added to the PUD requiring four-sided architecture, which would apply to both the existing Shops B building and the new Kroger store. The PUD Committee will need to review and approve the architecture of the new Kroger (in addition to the site plan, landscaping and lighting features, upon successful completion of addressing staff comments during the ILP review). Project Access, 118 th Street Kroger originally planned a secondary driveway to the south of the new building providing an additional access point to 116 th Street. In its place is now a detention pond and a reflection area. Vehicular access to 118 th Street was previously removed by the petitioner in December, at staff s request, because it would cause unnecessary cut-through traffic onto a quiet single-family residential street. However, at the December 9 th Plan Commission hearing, a resident on 118 th Street (Mr. Bruce Brown) requested that the driveway be placed back on the plan because he desires his property to be commercial in the future. As a result, the Plan Commission added a condition stating that Kroger provide a full access connection if all property owners on 118 th Street agree in writing. Since 2 nd Reading on December 15, Kroger placed the driveway back on the plan and placed bollards that could be removed in the future which would enable access. Staff believes that placing a gap in the berm and landscaping for this purpose is not necessary and would diminish its effectiveness, but staff understands the willingness to meet the request of Mr. Brown (and Mr. Rice, another resident who supports the driveway). Staff prefers that the driveway be moved westward near the rear of the store as it would align with an undeveloped property to the north. At 2 nd Reading, Council members expressed concern about the uncertainty of the future plan for 118 th Street. At a subsequent meeting with the project team associated with the Lutheran Church, a planned project to the west, they desired to have the road terminate into their parking lot. This would provide secondary access to their project. 118 th Street bending down to 116 th Street does not solve traffic problems by providing more options, but rather would simply serve as an unnecessary cut-through. If the 118 th Street connector provided access to Grey Eagle, for example, thus eliminating trips onto the main arterial roads, then this is when a connection like that makes sense. Thus, having the road terminate at the church property is acceptable to the Engineering Department. Page 5 of 8
Traffic & Circulation Kroger officials have stated that the increase in traffic resulting from a new store would be minimal because the larger store is meant to increase product selection to existing customers. Projected numbers have been documented in a traffic study; see Traffic Study below. Olio Road and 116 th Street are currently 4-lane Primary Thoroughfares, the widest arterials constructed in Fishers. Therefore, the roadways could handle any additional traffic emanating from this new store. Olio Road in this area is under the maintenance jurisdiction of the Hamilton County Highway Department. Any potential traffic signals must be approved by that agency. Traffic Study At the Plan Commission meeting, a number of individuals from the public expressed concern about the potential increase in traffic resulting from a larger Kroger store. In response, the Plan Commission required that a traffic study be conducted. A&F Engineering produced a Traffic Impact Study on December 1. The traffic study did not take into account Kroger s position that there would be little additional traffic, rather it used industry standard traffic projections for grocery stores. In the report, they make the following conclusions: The amount of newly generated traffic volumes from the proposed expansion is minimal and will not impact the surrounding roadway system in a negative manner. The existing 116 th Street and Olio Road intersection will continue to operate at the same level of service (LOS C) after the proposed expansion. The intersection delay will increase by approximately 2% over the existing delay. An (evening) peak hour signal warrant is met under existing traffic volumes and conditions for the Olio Road access point. However, as stated, this intersection is under the control of the Hamilton County Highway Department. They have indicated that they do not support a signal at this location at this time because it will negatively impact traffic flow along Olio Road. PUBLIC COMMENTS: Staff has received some remonstrance to the request, as well as letters of support. Any new letters or emails received since the December 15 th 2 nd Reading will be forwarded to the City Council prior to the January 20 th meeting. Below is a listing of the major concerns raised in letters or emails and at the various public meetings Concerns voiced by Kroger opposition (staff responses are below): - Concerns that big box retailer goes against the neighborhood feel that is desired in the area o As population growth has occurred in the nearby area, there is a demand for a larger store. Improving the parking lot design and the architecture of the store will be beneficial. - Concerns over the potential for increased traffic on already congested intersection, already high traffic streets, especially at peak o The traffic study has shown that 116 th Street and Olio Road can handle the additional traffic. The study has also shown that the intersection delays resulting from the new project are minimal. - Concerns over increased semi-truck traffic for deliveries of additional products proposed Page 6 of 8
o Kroger presented information that more deliveries are not anticipated and that the same number of trucks will be making deliveries as today, but will simply carry more product. - Concern that expansion is too close to school zones, where increased traffic is more problematic o Refer to traffic study. Staff has discussed the project with officials of the school district. - Believe that already there is plenty of other shopping options available o From a land use perspective, the enlarged store is consistent with the existing auto-oriented suburban commercial uses in the area. Additionally, testimony from residents in the area has shown a need for a larger store. - Concern over negative impact to existing homes o The enhanced berming, landscaping, and fencing will aid in buffering. - Concern over negative impact of additional light and noise on surrounding neighborhood o The enhanced berming, landscaping, and fencing will aid in buffering. Additionally, cut-off light fixtures will be utilized and truck delivery hours have been limited. - Concern that this change is setting a precedent that may lead to further commercial expansion o The project to the west is zoned R2 and is anticipated to be developed into a church. Any commercial development to the west or north would need to be rezoned. All rezones require staff review, public comment, a Plan Commission recommendation, and a City Council decision. - Concern over the impact on 118 th Street properties; The lots on 118 th Street should be commercial o 118 th Street is currently a viable single-family residential street which is well-buffered from the Kroger property. The street is not highly desirable for commercial land use because it does not front a major road. If the property owners submit a request for rezone, staff will review and advise the Plan Commission and Council. - Concern that the project will have a negative impact on property values o Effective buffering and development standards will help to maintain surrounding property values. - A restrictive covenant should be established to preserve the buffering and open spaces shown on the concept site plan o This has been incorporated into the zoning commitments. - The berm to be established should never be moved again o The berm has been incorporated into the zoning commitments as open space. If a developer ever wanted to change the commitments, they would need to go through a public hearing process. - This project creates an orphaned outlot (Farr Property) o Kroger is not interested in purchasing the Farr Property. It is likely that, at some point, a developer will propose to develop the site into a commercial project similar to the Moore Dentistry site. The property would need to be rezoned to commercial. - Kroger should provide water and sewer lines to the residents on 118 th Street o Sewer stubs already exist from the Kroger site to the north, to the southern edge of the 118 th Street right-of-way. The property owners would need to annex into the City and they would need to pay for hookups. Water line stubs would be provided from the site to the southern edge of the 118 th Street right-of-way to allow for a future connection. Page 7 of 8
Those in favor: - Want convenient access to their products more shopping options close by - Want expanded products and like quality of products feel traffic will not be significantly impacted Kroger conducted three separate Neighborhood Meetings to explain the project and solicit feedback. The meetings were conducted at Hamilton Southeastern High School on October 4 th, October 9 th, and October 13 th. Staff attended two of the three meetings. PLAN COMMISSION RECOMMENDATION: The Plan Commission issued a positive recommendation at their meeting on December 9, 2014 subject to the following favorable commitments. These commitments are also reflected in the attached Zoning Commitments document: 1. The maximum 40 height limit is restricted to the Kroger (anchor tenant) only and shall not apply to any other buildings in the center. 2. If there is a need for a traffic signal to be installed at the full access point onto Olio Road or at 118 th /Olio, Kroger will agree to fund the signal. 3. If there is agreement among property owners along 118 th Street to have ingress/egress into the shopping center, Kroger will agree to provide the full access (by removing the bollards). 4. A commitment will be crafted to require green space to be identified and be part of the ordinance. STAFF COMMENTS: Kroger has worked with staff to address comments related to site layout, pedestrian and vehicular access, parking, landscaping, and architecture. Staff believes that the site plan has been significantly improved since its original design, as has the architecture and site amenities. Staff will continue to work with Kroger to enhance the project further as part of the Improvement Location Permit (ILP) process and Planned Unit Development (PUD) Committee process. STAFF RECOMMENDATION: Staff recommends that the City Council conduct 3 rd Reading and approve the ordinance. Page 8 of 8