Chair Thiesse and Planning Commission Members Jessica Loftus, City Administrator. Jeremy Barnhart, Community Development Director

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Item 5 Item #05 - PC Agenda - 08/15/2016 Date Application Received: July 20, 2016 Date Application Considered as Complete: August 5, 2016 60-Day Review Period Expires: October 5, 2016 To: From: Chair Thiesse and Planning Commission Members Jessica Loftus, City Administrator Jeremy Barnhart, Community Development Director Date: August 15, 2016 Subject: #16-3856, Saryan Cuisine Development, LLC, o/b/o Paul Agre Company, 2380 Shadywood Road, Conditional Use Permit Public Hearing Application Summary: The applicant is requesting a conditional use permit to operate a production bakery, retail bakery outlet, cafe, and restaurant at 2380 Shadywood Road. A similar use, coffee and bagel shop, is a conditional use in the B-5 zoning district. Staff Recommendation: Planning Department Staff recommends approval of the proposed Conditional Use permit, with certain conditions outlined below. List of Exhibits Exhibit A. Exhibit B. Exhibit C. Exhibit D. Exhibit E. Exhibit F. Exhibit G. Exhibit H. Exhibit I. Exhibit J. Application Applicants narrative Floor Plan Elevation Proposed signage Site Plan Sample retail floor plan Sample menus B-5 zoning district regulations Property Owners List Background Saryan Cuisine operates three Patrick s Bakery Cafes in the metro area and proposes a 4 th at 2380 Shadywood Road (the former Snyder s Drugstore). Patrick s bakery café offers bakery products, pastries and chocolates. As in the other locations, Patrick s proposes offering breakfast, lunch and dinner service in the 60 seat dining room. The applicant s narrative, Exhibit B, outlines the proposal. Those interested may find additional information on their website, www.patricksbakerycafe.com. Improvements to the site include both an internal remodel and external cosmetic changes to the building. The rear third of the building will house offices, ovens, cold storage and utility spaces associated with a commercial kitchen. The middle third will be the production kitchen which will prepare baked goods, pastries and the food for the café and restaurant in the middle of the space. The front of the building, using the existing front door vestibule, will be the dining and retail area. The applicant has provided a sample (Exhibit G) of a similar layout for the Commission s reference. External changes include additional signage and painting of the upper half of the building, illustrated on Exhibits D and E.

FILE # 16-3856 August 15, 2016 Page 2 of 4 The existing drive thru window will not be used as a drive-thru. Shipping and received activities will occur out of the existing door on the northwest corner of the building. Applicable Regulation: Conditional Use Permit (Section 78-916) The Planning Commission may recommend and the Council may grant a Conditional Use Permit (CUP) as the use permit was applied for or in modified form. On the basis of the application and the evidence submitted, the city must find that the proposed use at the proposed location is or will be: 1) Consistent with the community management plan; The Community Management plan (3B-6b) identifies the subject property as a potential mixed use site, suggesting density in the 4-15 units per acre range. The CMP suggests developments such at senior assisted living, townhomes, condominiums, or apartment buildings as appropriate mixed use development. The Council recently denied an application for a nursing type facility at this location. The Planning Commission should consider whether these uses are appropriate, or if the proposed use is consistent with the Plan. 2) Compliant with the zoning code, including any conditions imposed on specific uses as required by article V, division 3 of the City Code; Coffee and bagel retail are a conditional use, with stated stipulations. The Planning Commission and Council should determine if the proposed use is consistent with this undefined use. 3) Adequately served by police, fire, roads, and storm-water management; This statement is true. 4) Provided with an adequate water supply and sewage disposal system; The property is served by municipal water and sanitary sewer. An existing 6 inch water service from Olive Avenue will be retained. Sanitary sewer is provided through a 6 inch pipe also to Olive Avenue. Preliminary estimates suggests the system is more than adequate, but a certified analysis of the sanitary sewer capacity may need to be completed. 5) Not expected to generate excessive demand for public services at public cost; The re-use of an existing commercial building should not increase demand on public safety, transportation, or storm-water facilities. 6) Compatible with the surrounding area as the area is used both presently and as it is planned to be used in the future; The property to the south is the Culvers restaurant and Holiday gas station; to the north and east are single family residential, and to the west is commercial uses. These uses are not proposed to be changed in the future, though the Comprehensive Plan suggests the residential property to the north might be appropriate for mixed use development. 7) Consistent with the character of the surrounding area, unless a change of character is called for in the community management plan; Minor modifications to the existing structure, and the retention of the commercial character of the site will not detrimentally impact the character of the neighborhood. 8) Compatible with the character of buildings and site improvements in the surrounding area, unless a change of character is called for in the community management plan; This statement is true. 9) Not expected to substantially impair the use and enjoyment of the property in the area or have a materially adverse impact on the property values in the area when compared to the impairment or impact of generally permitted uses: No evidence has been presented to suggest otherwise. 10) Provided with screening and buffering adequate to mitigate undesirable views and activities likely to disturb surrounding uses; The use will be contained indoors. Any

FILE # 16-3856 August 15, 2016 Page 3 of 4 future exterior patio, if located to the south and west of the building, would not impact adjacent residential neighborhoods and would require site plan approval. 11) Not create a nuisance which generates smoke, noise, glare, vibration, odors, fumes, dust, electrical interference, general unsightliness, or other means; No evidence has been presented to suggest otherwise. 12) Not cause excessive non-residential traffic on residential streets, parking needs that cause a demonstrable inconvenience to adjoining properties, traffic congestion, or unsafe access; There is no link from the proposed site to the adjacent residential streets other that the existing pedestrian trail which provides access to the public sidewalk system, the trail, businesses, and the bus system. These pedestrian connections are generally desirable in strong neighborhoods and communities. 13) Designed to take into account the natural, scenic, and historic features of the area and to minimize environmental impact; Does not apply. 14) All exterior lighting shall be so directed so as not to cast glare toward or onto the public right-of-way or neighboring residential uses or districts; no additional lighting is proposed, and 15) Not detrimental to the public health, public safety, or general welfare. This use is a common use in a commercial district and is not expected to have a negative impact. A CUP may be granted subject to such conditions as the Council may prescribe. Additionally, a CUP shall remain in effect as long as the conditions imposed by the City Council are observed, but nothing in this section shall prevent the city from enacting or amending official controls to change the status of conditional uses. Analysis Coffee and bagel retail are a conditional use permit in the B-5 zoning district, with 4 conditions. a. No more than 50 percent of the gross floor area of any single building shall be devoted to coffee and/or bagel retail store uses. 32.7% of the building is devoted to food/beverage retail uses. b. No individual coffee or bagel retail store use shall exceed 2,000 square feet of gross floor area. A combined coffee and bagel retail store use shall not exceed 4,000 square feet of gross floor area. The combined area of the food/ beverage retail is 3,900 square feet. c. The number of incremental parking spaces required for the coffee and/or bagel retail store use shall be calculated using the parking requirement standard for restaurant uses. Restaurant requires 1 space per 80 sq. ft. of public floor area, or 49 spaces (3900/80=48.75). The property provides 60 spaces, exceeding the requirement. The applicant shall demonstrate that the total parking needs for the site will be met. A portion of the parking area is subject to a cross parking easement with the property now occupied by Culvers. In practice, and based on observations, Culver s customers frequently use 10-12 spaces on the subject property. d. An individual coffee or bagel retail store use shall be limited to a maximum of 45 seats. A combined coffee and bagel retail store use shall be limited to a maximum of 60 seats. The combined number of seats proposed is 60. The proposed use appears to meet the standards imposed on bagel and coffee stores. Coffee and bagel retail are not defined in the zoning ordinance, though this description is assumed to be similar to Caribou/ Starbucks/ coffee houses and Bruegger s bagel shops, all of which are open

FILE # 16-3856 August 15, 2016 Page 4 of 4 throughout the day and offer food for dine in. Restaurants are defined, but are not permitted uses in the B-5 zoning district. The applicants propose a business that provides baked goods and drinks with an expanded menu throughout the day. The applicants intend to apply for a liquor license to offer beer and wine to the lunch and dinner customers. By definition, businesses offering liquor are a class II restaurant. An ordinance amendment may be necessary for the city to be able to issue a liquor license. The menus provided (Exhibit H) are intended to give the Commission an understanding of the scope of food offerings. The menus will change from time to time. The proposed business is a combination of many uses: production kitchen, catering establishment, pastry shop, and small restaurant. The Planning Commission should discuss whether the use is appropriate in the proposed location. Restaurants are restricted to certain districts to alleviate potential impacts due to noise (late hours) and traffic. Commercial zones are intended to generate and capture traffic, the proposed use is not outside the norm. Staff suggests a limitation on hours to alleviate potential noise concerns. It is acknowledged that the building will be used during the evening for baking operations. Public Comments To date (August 10, 2016), no public comments have been received for or against the proposal. Issues for Consideration 1. Does the Planning Commission find the use appropriate for the property? 2. Does the Commission find it necessary to impose additional conditions in order to mitigate the impacts created by the granting of the requested Conditional Use Permit? 3. Are there any other issues or concerns with this application? Recommendation The proposed use, a bakery and coffee shop with an expanded food menu, while observing the constraints imposed on coffee/ bagel shops, appears to be appropriate at the proposed location. Should the Commission agree, staff would recommend the following conditions: The drive thru window shall not be used. The retail space may not be open past the hours of 10 pm.

File #16-3856 PC Exhibit [Total Pages I 29] DIVISION 16. - B-5 LIMITED NEIGHBORHOOD BUSINESS DISTRICT [12] Sec. 78-761. - Purpose. The B-5 limited neighborhood business district is intended to provide a district for businesses that supply commodities or perform a service primarily for residents in the surrounding neighborhood, which businesses are not high traffic generators and do not necessitate an inordinate amount of hard cover. The district may adjoin residential districts or other business districts which are subject to more restrictive controls. The district shall have immediate access to adequate highways and public sanitary sewer. Because of the location of the B-5 district as contemplated in the area known as Navarre in the city, the uses are limited in order to limit the hard cover in that area and to limit the future generation of traffic for that property in that use district, since there is already a traffic problem in Navarre. (Code 1984, 10.44(1)) Sec. 78-762. - Site plan review. All site reviews in any B-5 limited neighborhood business district shall be reviewed as set forth in article II, division 4 of this chapter. (Code 1984, 10.44(2); Ord. No. 68 3rd series, 8, 2-8-2010) Sec. 78-763. - Permitted uses. Within any B-5 business district, no structure or land shall be used except for one of the following uses or uses deemed similar by the council: (1) Municipal buildings. (2) Offices. (3) Clinics. (4) Art and school supply store. (5) Book and magazine store. (6) Office supply store. (7) Banks, loan company, insurance company, real estate office. (8) Barbershop, beauty shop. (9) Camera and photograph supply store. (10) Locksmith. (11) Hobby shop. (12) Gift store. (13) Glassware and pottery. (14) Antique store. (15) Jewelry store. (16) Watch repair. (17) Library. (18) Museum. (19) Record shop. (20) Music store. (21) Tobacco shop. (22) Galleries. (23) Pet shop. (24) Massage therapy centers. (Code 1984, 10.44(3); Ord. No. 72 3rd series, 3, 6-26-2010) Sec. 78-764. - Conditional use. (a) Within any B-5 limited business district, no structure or land shall be used for one of the following uses except by conditional use permit: (1) Candy, ice cream, popcorn, nuts, frozen desserts, soft drink store. Page 1

(2) Dry cleaning store. (3) Tailor shop. (4) Pressing and shoeshine shop. (5) Laundry and cleaning pickup stations. (6) Veterinary clinic. (7) Kennels. (8) Coffee or bagel retail stores, subject to the following conditions: a. No more than 50 percent of the gross floor area of any single building shall be devoted to coffee and/or bagel retail store uses. b. No individual coffee or bagel retail store use shall exceed 2,000 square feet of gross floor area. A combined coffee and bagel retail store use shall not exceed 4,000 square feet of gross floor area. c. The number of incremental parking spaces required for the coffee and/or bagel retail store use shall be calculated using the parking requirement standard for restaurant uses. The applicant shall demonstrate that the total parking needs for the site will be met. d. An individual coffee or bagel retail store use shall be limited to a maximum of 45 seats. A combined coffee and bagel retail store use shall be limited to a maximum of 60 seats. (9) Off-street parking when the principal site of the off-street parking abuts on a lot which is in another B or I district and is in the same ownership as the land in the B or I district, and subject to those conditions as set forth in article X, division 5, of this chapter and other such conditions as found necessary by the council. (10) Public service structures, including but not limited to electric transmission lines in buildings, such as telephone exchange stations, booster or pressure stations, elevated tanks, lift stations and electric power substations. Personal wireless services and commercial broadcasting antennas and towers shall not be considered essential services. (11) Drug store, subject to the following condition: Hours of operation shall be limited to 8:00 a.m. to 10:00 p.m. for a drive-through service. (Code 1984, 10.44(4); Ord. No. 152 2nd series, 2, 10-28-1996; Ord. No. 161 2nd series, 10, 6-7-1997; Ord. No. 170 2nd series, 1, 3-23- 1998; Ord. No. 198 2nd series, 1, 4-24-2000) Sec. 78-765. - Accessory uses. Within any B-5 limited neighborhood business district, the only permitted accessory uses and structures are the following: (1) Private garages, off-street parking and loading spaces, as regulated in this chapter. (2) Signs, as regulated in this chapter. (3) Buildings temporarily located for purposes of construction on the premises for a period of not to exceed time necessary to complete said construction. (4) Decorative landscaping features. (5) Fences, as regulated in this chapter. (6) Any incidental repair or processing necessary to conduct a permitted principal use, provided that the incidental use shall not exceed 30 percent of the floor space of the principal building. (7) Public telephone booths. (8) Other uses that are customarily incidental to, and subordinate to, the allowed permitted and conditional uses in this district. Sec. 78-766. - Area, height, lot width, setback requirements and design requirements. (a) Area. The minimum lot size in any B-5 district shall be 20,000 square feet. (b) Lot width. The minimum lot width shall be 100 feet. (c) Front yards. The minimum front yard shall be 20 feet. (d) Rear yards. The minimum rear yard shall be 30 feet, a side yard adjacent to an R district shall be 15 feet, and a side yard adjacent to a street shall be ten feet. (e) Setback requirements. No building shall be nearer than 35 feet to any front lot line, 35 feet from any rear lot line, 15 feet from any side lot line, or 35 feet to any side lot line adjacent to a street; except abutting or across the street from an R district, no building shall be less than 35 feet from such lot line. Page 2

(f) (g) (h) (i) Fencing. Wherever a B-5 limited neighborhood business district abuts an R district, along the side or rear lot line, a fence or compact evergreen hedge no less than 50 percent opaque nor less than six feet in height shall be erected along the abutting lines except within the required front yard. Building design and construction. In addition to other restrictions of this chapter, the use, construction, alteration or enlargements to any building or structure within the district shall meet the following standards: (1) All exterior wall finishes on any building shall be: a. Face brick; b. Natural stone; c. Specially designed precast concrete units if the surfaces have been integrally treated with an applied decorative material or texture; d. Factory fabricated and finished metal framed panel construction, if the panel materials are of any of those noted in subsections (g)(1)a c of this section, or glass; or e. Other materials as may be approved by the council. Combinations of such materials shall be permitted. (2) All subsequent additions and outbuildings constructed after the erection of an original building shall be constructed of materials comparable to those used in the original construction and shall be designed in a manner conforming with the original architectural design and general appearance. (3) No building or structure of a temporary character, trailer, basement, tent or shack shall be constructed, placed or maintained upon the property except as accessory to and during the construction of permanent buildings. Drainage. No land shall be developed and no use shall be permitted that results in water runoff causing floods, erosion or deposits on adjacent properties. Site and drainage plans shall be submitted by the applicant in such detail as required by the council, and those plans shall be reviewed by the city engineer before submission to the planning commission and the council for approval. Such runoff may be required to be properly channeled into a natural watercourse, ponding area, storm drain or other public facilities. Any change in grade affecting water runoff, whether onto adjacent property or otherwise, must be in compliance with the surface water management plan and shall be consistent with other applicable regulations or provisions of this Code and subject to the approval of other agencies having jurisdiction over the area affected by the drainage. Height. No structure or building shall exceed 2½ stories and shall not exceed 30 feet in height except as provided in section 78-1366. Page 3