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06-28-99 PC Minutes e - Regular Meeting of the Golden Valley Planning Commission June 28, 1999 A regular meeting of the Planning Commission was held at the Golden Valley City Hall, Council Chambers, 7800 Golden Valley Road, Golden Valley, Minnesota, on Monday, June 28, 1999. The meeting was called to order by Chair Pentel at 7:00 p.m. Those present were Chair Pentel and Commissioners Eck, Groger, Hoffman, McAleese and Shaffer. Also present were Mark Grimes, Director of Planning and Development, Beth Knoblauch, City Planner and Tammi Hall, Recording Secretary. I. Approval of Minutes - June 14. 1999 Chair Pentel asked Grimes about his statement at the June 14 meeting that potential buyers would be unable to purchase the Olympic Printing property without City assistance. Director of Planning and Development Mark Grimes responded that, most likely, a potential buyer would be interested in redeveloping the property for office or office/warehouse use. Since they woulq be unable to use the existing building, they would be willing to pay only the going market rate for raw land. Pentel asked if we are creating a potential problem in redevelopment districts by giving developers the impression that the City will always provide assistance to enable them to purchase property at raw land prices. Grimes stated that the tax increment financing district will be ending in the very near future and there will be no funds to continue to assist developers. He stated that it is also possible that Olympic Printing would decide to stay and rehabilitate the building. Grimes stated that, at the current time, developers would not be willing to pay market rates for property such as Olympic Printing because the economics of the purchase would not make sense. Commissioner Shaffer stated that if you wait for the market to reach the point that the property can be sold to a developer at market rate, it is likely that the building would have deteriorated to the point that it would degrade the value of surrounding properties. Commissioner Groger stated that the Olympic Printing building is unattractive and could potentially increase vacancy rates in the adjacent office building. Grimes added that there is currently a glut of office space which creates competition for tenants and developers want their properties to be in prime condition to ensure they are able to attracttenants. Commissioner Hoffman asked about the discussion on page three of the minutes regarding the Breck Ice Arena and the three buildings in the west area. Grimes stated that there is a development agreement with Duke that, if they meet certain requirements, the City will obtain this land and sell it to Duke for the purpose of constructing office buildings on the property. Hoffman asked if these sites were purchased before the agr~ement with United. City Planner Beth Knoblauch responded that these properties have not been purchased by the City and are currently controlled Minutes of the Golden Valley Planning Commission June 28, 1999 Page 2 by private owners. She stated that if Duke meets the requirements set out in the development agreement, the City has agreed to acquire the property and sell it to Duke. Hoffman stated that, as a result of this existing development agreement, the Commission cannot consider this area as part of the area that will be reviewed. Pentel stated that the Commission cannot have input on the specific land use for this area, but they can consider the area in terms of traffic impact and in terms of land use mix for the entire area. Hoffman asked if there are limitations as to what Duke can construct on these properties. Pentel stated that the parameters for what can be built on the property are included in the development agreement. Grimes stated that there is a redevelopment plan for 1-394 that was previously approved by the Planning Commission and the City Council. He stated that, in a redevelopment district, a redevelopment plan is approved and then implemented by the Housing and Redevelopment Authority (HRA). Grimes stated that, from a historical perspective, the HRA became involved years ago because they felt that if there was no plan, _ development could proceed in a very haphazard manner and they wanted some control to assemble larger parcels of property together. Hoffman asked if Duke is required to come before the Planning Commission for final approval of the structure they plan for the property. Grimes stated that when Duke buys the property from the HRA they must come back before the Planning Commission and the City Council for approval as a Planned Unit Development (P.U.D.). Knoblauch stated that the broad parameters have been laid out in the development agreement and Duke then presents the final details in the P.U.D. Grimes stated that the developer must also adhere to the traffic management ordinance and environmental regulations. Pentel asked about the circulator system mentioned on page five of the minutes. Grimes stated that St. Louis Park is working on a circulator system with Minnetonka and Hopkins. He stated that they have indicated they would be willing to consider extending .. the system into Golden Valley. .., Groger stated that the address for the minor subdivision for the Lesters in the June 14 minutes should be corrected to 1645 and 1637 Lilac Drive North. MOVED by Eck, seconded by Shaffer and motion carried unanimously to approve the June 14, 1999 minutes with the correction to the address, as noted above, on the Lester minor subdivision. II. Reports on Meetinas of the Housina and Redevelopment Authority. City Council and Board of Zonina Appeals There was brief discussion regarding the City Council meeting and review of the Transportation Plan. - - Minutes of the Golden Valley Planning Commission June 28, 1999 Page 3 III. Other Business A. Continued Discussion of HRA Charge - Golden Hills Redevelopment Area - Future Development Commissioner Eck stated that it would be helpful to have an up-to-date map of the 1- 394 corridor showing current property owners/tenants. Pentel stated that this should be an item that is included in the budget request. Eck stated that the 1-394 corridor study addressed non-conformities in the area. He questioned if the non-conformities exist because the buildings were constructed prior to the current City code. Grimes stated that some of the non-conformities are a result of changes in City code. However, he indicated that some of the non-conformities are due to shifting land uses and to changes to structures that were done without permits. Eck asked if it is practical to require correction of the non-conformities. Grimes stated that requiring corrections would probably not be successful, but the City could go through a process to make them legally non-conforming. Knoblauch stated that one of the possible outcomes of this project may be a policy that no additional variances be granted on existing buildings or only certain types of variances could be granted. She indicated that this would provide a guideline for other bodies that become involved in these redevelopment projects. Groger stated that there have been a number of redevelopments where the Commission allowed variances because the new development provided a substantial improvement over the existing building. Grimes stated that the industrial zoning along 1-394 has always been a problem and that the City has done things to compensate for the industrial zoning rather than coming up with a new zoning district. Eck stated that some properties along the corridor are made up of unconsolidated individual parcels. He asked if the property owners could potentially sell off these individual parcels. Knoblauch stated that, in the past, the City allowed property owners to build over property lines without consolidating the parcels, which has resulted in the current situation. She indicated that property owners could sell off individual parcels. Grimes stated that the City no longer allows property owners to build over property lines without consolidating the lots. Eck asked about the recommendations of the 1-394 corridor study. Knoblauch stated that none of the recommendations were actually implemented because one of the recommendations was that the area be reviewed again after 1-394 was completed. She stated that the comprehensive plan and zoning code were not amended based on these recommendations. Minutes of the Golden Valley Planning Commission June 28, 1999 Page 4 At the previous meeting, the Commission outlined six items to be addressed in regard to the 1-394 corridor redevelopment issue: . define land area (scope) · define stakeholders . define process steps . define time frame · define goals and type of product . determine budget requirements The discussion for the remainder of the meeting was centered around these items. Define the land area: Pentel stated that the study area should extend beyond Olympic Printing. - Shaffer stated that he felt areas defined as 3, 4 and 5 in the 1990 1-394 Corridor Study should be the study area. Pentel stated that she would like to see the residential area that is west of Winnetka included in the study area. Shaffer responded that he felt these residents would be considered stakeholders but not part of the study area for redevelopment. Knoblauch suggested that the one area be defined as the study area in terms of potential changes in land use and that a second, larger area be defined as the potential impact area that would be affected by the changes. She suggested that the surrounding residential areas be included in the broader impact area since they are not being considered for possible change in land use. Grimes stated that any redevelopment plan proposed must consider the impact on housing and ensure the preservation of affordable housing. He stated that the residential area land use should remain unchanged but the Commission should ensure that any proposed redevelopment enhances the surrounding neighborhoods. - There was further discussion regarding expansion of the study area beyond Olympic Printing. Grimes stated that the Olympic Printing site would most likely not be redeveloped in the very near future so there will be time to do some planning in regard to the site. Grimes stated that the Commission should request a budget from the Council that would include funds to obtain input from outside consultants that may produce some fresh ideas in regard to this area. Groger asked if there is any possibility of the City creating more redevelopment districts in this area. Grimes stated that this may be a possibility. Groger questioned if the City is willing to take an aggressive approach to this area to ensure their plan is executed. Minutes of the Golden Valley Planning Commission June 28, 1999 Page 5 Grimes stated that whatever the Commission recommends will have a positive impact on property values in the area. There was further discussion regarding the boundaries of the proposed study area. It was decided that the area should include sections 3, 4 and 5, eliminating any single family residential area. The apartments near Circle Downs and the nursing home would be included in the study area. Define stakeholders: - Pentel suggested that the stakeholder area be bounded by Highway 100 on the east and Highway 55 on the north. Groger suggested that the area be bounded on the west by Brookview. It was suggested that homeowners, renters, business owners, business tenants, churches, and schools in the defined area be invited to provide input. Pentel suggested that landlords be asked to forward the information to their tenants if it is not possible to mail directly to renters. Grimes stated that the existing City communication system, including the City newsletter, could also be used to inform residents. The Commission also discussed obtaining input from experts such as developers, architects, etc. McAleese stated that it may be helpful to have a presentation by someone who can address the aesthetics of the individual structures and the area as a whole. - Groger suggested that all City residents be included in the list of stakeholders. He stated that redevelopment of the 1-394 corridor could provide shopping and other services that would be used by all residents and it would be good to get their input and see what kinds of things they would like to see included in area. He suggested that a survey be placed on the City web site requesting input from residents. Knoblauch stated that the Council was considering conducting a resident survey this year. Knoblauch asked if an effort should be made to obtain input from youth given that the area includes two schools and some parks. The Commission concluded that it was not necessary to make a special effort to obtain input from youth. Knoblauch asked for clarification regarding reaching business owners and property owners within the study area. Pentel responded that the Commission would want input from both tenants and property owners. Define process steps: Pentel suggested that the Commission obtain the background information before proceeding with defining the process steps and the end product. Minutes of the Golden Valley Planning Commission June 28, 1999 Page 6 There was substantial discussion regarding the best structure for conducting this project, including the public process. Groger stated that he was concerned regarding the time required to successfully complete the project and that it may be difficult to complete other Planning Commission business in addition to this project. He suggested that a task force be created with representatives from the Planning Commission and other stakeholder groups. He stated that the full Commission could operate as a review and decision-making body. Grimes responded that it would be essential for the task force to understand the role of the Planning Commission. Shaffer suggested that one of the methods for obtaining citizen input would be to include specific questions in the survey regarding some of the options under consideration. The questions and the survey response could be used as a framework for discussion at public meetings. There was discussion regarding whether separate meetings should be conducted to obtain input from residents and business owners. Grimes stated that it should not be assumed that there would be disagreement between residents and business owners. McAleese stated that it may be beneficial to have separate meetings to allow people to speak freely. - Eck commented that it may be difficult to obtain a good response to a survey and that it may be better to frame the public hearings around some key issues that need to be add ressed. Pentel suggested that the first meeting in the public process should provide background information. Grimes suggested the Commission may want to conduct some focus groups to obtain _ input from smaller stakeholder groups to define their issues. Pentel asked about the origins of the previous 1-394 study. Knoblauch responded that there was concern regarding haphazard development in the area and the study was initiated to determine what could be done to improve development. Shaffer asked if there had been public input on the previous study. Knoblauch responded that no public input had been obtained. Groger stated that before the Commission proceeds there must be a commitment from the City Council for funding to conduct a survey, and possibly hire consultants and other experts for their input. He suggested that once there is a funding commitment from the City Council, the survey can be conducted and we can determine the stakeholder issues. He stated that once this input is received a decision could be made on how to proceed. He suggested that the Commission would probably want to look e e Minutes of the Golden Valley Planning Commission June 28, 1999 Page 7 first at land use issues and then obtain additional public feedback. Groger stated that from there the Commission could proceed to further detail including the aesthetics element. He suggested that sub-teams could be utilized, if needed, to address certain issues. There was discussion regarding the traffic issue at Laurel and Winnetka. Grimes stated that this area is currently under study. He will obtain an update on the status. McAleese stated that it is essential to determine the City's commitment to the process. He suggested that it may be helpful to meet with the HRA to get a better direction on the project. Grimes stated that he would contact the HRA regarding meeting with the Commission. The minutes of this meeting will be sent to the HRA after review and approval by the Planning Commission. Grimes said the next HRA meeting will be held on July 13th and said that he would talk with HRA members regarding potential dates for a joint meeting and then contact Commission members. IV. Adiournment The meeting was adjourned at 9:30 p.m. -:J.~~C~ Richa Groger, Secr ry