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the College to operate a student housing facility in the B -2 District. TAT Properties had purchased the building and intended to lease it to Northwestern College. The IUP is set to expire May 30, 2011. Student housing is currently defined as "institutional housing" in the City's Zoning Code. As part of the approval the City adopted an IUP process, and amended the City's land use chart to allow institutional housing as an interim use in the B -2 District, under certain circumstances. Sighting a number of factors, including the slowed economy over the past several years, Northwestern College was not able to construct on- campus student housing. At present, Arden Hall has proven to be a success for Northwestern College. As an alternative to losing the capacity to house the students living in Arden Hall when the IUP expires at the end of this school year, Northwestern College is proposing to extend their lease with TAT Properties and continue the operation of their student housing facility. In turn, TAT Properties has found it more difficult than originally anticipated to find a viable redevelopment option for the property, and has submitted an application to the City requesting the current interim use of the building be converted to a permanent use. Presently, the Zoning Code does not identify institutional housing as a permitted or conditional use within the B -2 District. Land uses that are not specifically identified in a city's zoning code as permitted or conditional uses are considered prohibited. In order to accommodate the applicant's request to allow the student housing facility to continue operations at its current site, the request includes a proposal to amend the Zoning Code to add institutional housing as a use permitted through a PUD process in the B -2 District. This means that the use would be considered permitted, but would be required to get an approved Master and Final PUD in order to operate in the B -2 District. Since the September 8, Planning Commission meeting, the applicants have reviewed their request in terms of making the existing student housing use permanent versus extending the existing interim use permit. The applicants have indicated that the cost of improvements that are required in the building are significant, and that these improvements warrant a long term investment in the property. Furthermore, a zoning classification that allows the use permanently is necessary in order to garner financing to make the required improvements. See the September 8, 2010, Planning Commission report to review the applicant's letter outlining the reasons for their request. 2. Planned Unit Development (PUD) Process The PUD process is a tool that provides additional flexibility for developments that could not otherwise be developed in the manner allowed in the underlying zoning regulations. For example, a PUD process is required for certain types of uses within specific Zoning Districts in the City that may be appropriate uses, but require additional review and negotiation. The City of Arden Hills Planning Commission Meeting for October 6, 2010 Page 2 of 12