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ARDEN HILLS CITY COUNCIL JANUARY 27, 201410 Associate Planner Bachler stated that in December 2012, the City Council approved Planning Case 12-019 for a Master and Final Planned Unit Development (PUD) at 1201 County Road E. This planning case allowed the reuse of the existing building on the property for 74 residential apartment units and approximately 20,000 square feet of retail space. A Certificate of Occupancy for the building was issued in October 2013. The City Council later approved a Certificate of Completion for the E Street Flats project in November 2013, which acknowledged that the developer had completed certain site improvements as required by the Development Agreement. Associate Planner Bachler indicated that the approved Master PUD consists only of the redevelopment of the existing building on the property and the completion of site improvements. A previous land use application (PC #11-011) submitted by the applicant and approved by the City Council in 2011, included a preliminary plat proposal that would have subdivided the property into two parcels. Approval for this land use application expired prior to the City taking action on Planning Case 12-019. Associate Planner Bachler reported that the Development Agreement states that the property owner intends to develop the eastern two acres of the site into retail or other commercial uses and that any future development will require a separate application to the City. Also included in the Agreement is the provision that any significant changes to the approved plans require a review by the Planning Commission and approval by the City Council. Staff has determined that the proposed project qualifies as being significant and that an amendment to the existing Master PUD is required. Associate Planner Bachler explained that since 1201 County Road E would continue to be a single parcel of property, the proposal has been evaluated based on whether the entire site will meet the zoning requirements once the new development is completed. It should be noted that the site plan was designed so that the two-acre development site would be in conformance with zoning regulations independent of the entire parcel in terms of building and landscape lot coverage. Associate Planner Bachler stated that the project is being reviewed through the PUD process, which allows the City to grant flexibility within the typical zoning code requirements. Because of this, deviations are not considered variances and the review criteria typically used for variance requests do not apply. The City is not required to grant the requested deviations if there is a rational basis for denial. Additionally, any conditions imposed by the City must have a rational basis related to the expected impacts of the development. Associate Planner Bachler noted that the applicant has proposed constructing a 17,743 square foot retail building that would be located on the undeveloped two acre eastern portion of 1201 County Road E. TAT Properties has been working with Goodwill Industries and plans to sign a long-term lease with the company for use of the building. If the proposal is approved, work on the site is expected to begin in April or May of 2014, with an anticipated construction completion schedule of six months. Associate Planner Bachler indicated that the building would be situated at the southeast corner of the lot and would be accessed using the easterly driveway on the property that currently services E Street Flats. Slightly more than half of the building area would be used for retail sales,