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HomeMy WebLinkAbout2A, Planning Case 12-007 - 1201 County Road E Proposal R,DEN HILLS Request for Council Action 2A ............ Prepared By: Meagan Beekman,City Planner Work Session Date: March 26,2012 Planning Case 12-007— 1201 County Road P Proposal Budgeted Amount: Actual Amount: Funding Source: NA NA NA. Discussion Topic: Review and discuss the applicant's proposal to convert the former Holiday Inn into a 155-unit apartment building. Provide Staff and the applicant feedback and direction on how to proceed. Supportinp_Documents: 1. Memorandum from Meagan Beekman,dated March 26,2012 2. Application and Supporting Materials Ell'HILLS MEMORANDUM DATE: March 26,2012 TO: Honorable Mayor and City Councilmembers Patrick Klaers, City Administrator FROM: Meagan Beekman, City Planner SUBJECT: Planning Case#12-007 Applicant: 1201 County Road E LLC (TAT Properties LLC) Property Location: 1201 Nest County Road E Request: Preliminary and Final Plat, Master and Final Planned Unit Development Requested Action Review and discuss the applicant's proposal to convert the former Holiday Inn into a 155-unit apartment building. Provide Staff and the applicant feedback and direction on how to proceed. Background The property at 1201 County Road E is owned by TAT Properties, represented by Rob Davidson. In March 2008, the City approved a request from TAT Properties and Northwestern College granting an Interim Use Permit (IUP) at the former Holiday Inn property that would allow the College to operate a student housing facility in the B-2 District. TAT Properties had purchased the building and intended to lease it, in its entirety, to Northwestern College. The IUP expired on May 30,2011. Prior to the expiration of the IUP, the City approved a request by TAT Properties to allow the student housing on a permanent basis provided that Northwestern College remained the sole tenant of the building. Citing a drop in expected attendance and financing, Northwestern College withdrew their interest in the property shortly after that approval. Northwestern College has since vacated the building. Cify of Arden Hills City Council Work Session for March 26, 2012 liMeiro-inetuslardenhillsiPlanningWiann ng Cases12d12112-007-1201 County Road E-PUD and Plat{Pendingll43-26-12-CC WS-1201 County!toad F,PUD-Memo.docx Page I of 5 At the time of the IUP approval, the City was just beginning the process of developing the Guiding Plan for the B-2 District, which was ultimately accepted by the Council in October 2008. The City's zoning regulations were consequently amended to incorporate the goals of the Guiding Plan for the B-2 District,including design standards for new construction. After Northwestern College withdrew, the City reviewed and approved a subsequent proposal from Select Senior Living to convert the building into assisted senior housing. Select Senior Living has since ended their negotiations with the property owner to purchase the property for this use. Overview of Request TAT Properties is now requesting a Master and Final PUD to allow the reuse of the existing building at 1201 County Road E as a 155-unit apartment building. Four of the units would be one-bedroom units, and the remainder would be efficiency units. The applicant would install a counter top, sink, under-counter cabinet, under-counter refrigerator, and a microwave in each unit. In addition, pre-existing communal kitchens would be available to tenants on each floor. The applicant would bring the property up to building code requirements, and is proposing improvements to the main floor in terms of tenant amenities (Attached). The applicant is requesting a phasing plan for the building that would allow the developer to complete improvements on the first and second floors of the building at this time. The remainder of the units, located on the third and fourth floors,would be converted over time, as the market dictates. The third and fourth floors would remain vacant in the interim. The applicant is not proposing any alterations or use of the former restaurant facility, though reuse of this area is not being ruled out. In addition to the request for Master and Final PUD, TAT Properties is proposing to subdivide the property into two parcels, reserving the eastern two acres of the site for a future development option that has yet to be determined. The submitted plans include a conceptual drawing of what might be possible on Lot 2, but the applicants are not seeking approval for development on Lot 2 at this time. In order to accommodate the request for the subdivision, and bring the property into compliance with the City's zoning regulations, the storm water ponding and landscaped area would be shared by the two parcels. City of Arden Hills City Council Work Session for March 26, 2012 11Metro-inet.uzlurdenhillstPlanning0anning Cases12012U2-007-1201 County Road -PUD and Plat(Pendtng)W3-26--12-CC WS-1201 County Road E PUD-Memo.docx Page 2 of 5 Discussion TAT Properties and City Staff have been working on this proposal since early January. The applicant has revised the proposal a number of times based on comments from Staff; however Staff continues to have concerns over several items related to this project. The Planning Commission is scheduled to hold a public hearing on this application at their April 4, 2012, meeting. At this time Staff and the applicant are requesting feedback and direction from the Council on how to proceed with negotiations. Staff continues to have concerns related to five aspects of this project, and is seeking direction from the Council on these items. Density The B-2 District allows up to 20 units per acre for multi-family housing. As proposed with 155 units the project would have 26 units per acre. With the current configuration of the subdivision the former Holiday Inn would be able to have up to 120 units and still meet the requirements of the Code. Density is directly related to the number of people living in the building, and the number of vehicle trips and parking demand that the property will generate. Kitchens The Zoning Code and Building Code require dwelling units to have adequate complete and permanent kitchen facilities. Without a kitchen, as defined by the City, a unit would not be considered a dwelling unit, but rather a boarding room. Staffs interpretation of the International Property Maintenance Code and the Zoning Code is that an adequate complete and permanent kitchen includes a sink, counter, refrigerator, cabinetry, stove, and oven. The applicant is proposing to put in under-counter refrigerators in place of full sized refrigerators, and microwaves in place of stoves and ovens. Staff has reviewed the regulations of several cities to review their definitions of kitchen facilities. In general, other cities' regulations pertaining to kitchen/cooking facilities are the same as in Arden Hills. Furthermore, staff at the City of Bloomington stated that they would not consider microwaves, or under the counter refrigerators, in lieu of full refrigerators, stoves, and ovens, to be in compliance with the International Property Maintenance Code. The applicant maintains that kitchens are not clearly defined in the Zoning Code; however, the City Council does have the authority to interpret and administer its regulations. Commentary, included with the International Property Maintenance Code, which the City has adopted, defines adequate kitchen facilities as refrigerators, stoves, and ovens. City of Arden Hills City Council Work Session for March 26, 2012 I Metro-rued.uslardenlullstPlanninglPlanning Cases12012112-007-1201 County Round R-PUU and Plat(Pemting)103 26-12-CC WS-1201 County Road E PUU-Memo.docx Page 3 of 5 Traflic The traffic study submitted by the applicant is still under review by the County and City Staff. The study makes assumptions about a number of possible uses that could be developed on the new Lot 2, and assumes a daycare and fitness center in the McGuire's space. The traffic study concludes that at full build-out, with the apartment building, the site would generate three times the number of PM peak trips than the Holiday Inn when it was operational. This does not necessarily mean that there would be a traffic problem,because the traffic study does not address the maximum capacity of the system for trips generated from this site. The County has been asked to analyze this and determine a maximum capacity, which will assist in the City's review as the site develops over time. Until the capacity is determined, Staff is concerned about the increase in traffic on this site. Phasing The applicant proposes to complete and occupy the first two floors of the building initially, and develop the third and fourth floors as the market demands. The Sheriff has reviewed this proposal and has significant concerns over the ability of the property owner to safely secure the top two floors in the interim. According to the Sheriff, locks will not be adequate to keep individuals out of the top two floors. Mix of unit types Staff is concerned about the number of efficiency units in the building. Experience and market trends indicate that successful apartment buildings offer a mix of units to draw a wider range of demand and demographics. It is preferable to have a mix of incomes within a single project, rather than a high concentration of low-income individuals. The Sheriff has also raised concerns over the density and number of efficiency units proposed in the building in terms of safety and security. Staff continues to believe that this property is an appropriate location for high density housing; however, Staff feels strongly that a diversity of studio, one, and two-bedroom units would function the best, both in terms of satisfying market demands, and offering a variety of options for potential tenants. An ideal scenario would be to plan for the redevelopment and/or reuse of the site as a whole, rather than the City reviewing it in segments over time. The applicant contends that there is a market demand for efficiency apartments, but that if they find that the market.demand is for more in-room amenities or larger units, they will adjust their plan as the project is built out. City of Arden Hills City Council Work Session for March 26,.2012 f tMetro-inet.uslardenhiUs1P1anninglPlanning Cases12012112-007-1201 County Road E-PUD and Plat(Pending)103-26-12-CC Ws-1201 County Road E PUD-Memado= Page 4 of 5 Options The Planning Commission is scheduled to review this application on April 4, 2012, and hold a public hearing. At this point in time Staff continues to be reluctant to make a recommendation of approval; however staff also acknowledges the importance of this site in the B-2 District and the economic challenges involved in the reuse of the property. Two other development applications for this property have been reviewed by the City and approved in the past two years, both of which did not come to fruition. Staff understands the frustration of both the City and developer to find a mutually beneficial and productive reuse of this property. In that vein, if the City Council ultimately decides to approve this application, Staff can draft conditions of approval as directed by the City Council. Requested Action Review and discuss the applicant's proposal to convert the former Holiday Inn into a 155-unit apartment building. Provide Staff and the applicant feedback and direction on how to proceed. Deadline for Agency Actions The City of Arden Hills received the completed application for this request on March 14, 2012. Pursuant to Minnesota State Statute,the City must act on this request by May 13, 2012 (60 days), unless the City provides the petitioner with written reasons for an additional 60 day review period. The City may, with the consent of the applicant, extend the review period beyond the initial 120 days. Attachments Application and Supporting Materials City ofArden Hills City Council Work Session for March 26, 2012 lUteiro-inet.ustardenhills4PlanningWIanningCases12Ol2412-007-1201 County Road E-PUD and flat(PendingA03-26-12-CC WS-1201 County Road E PU17-Mevno.doox Page 5 of 5 THE AVIDO INC. MEMO] Date: March 13, 2012 To: Ms. Meagan Beekman City of Arden Hills From: Robin C. Davidson The Davidson Companies, Inc. Subject: Land Use Application Dear Meagan: The attached application includes the following: Master PUD, Final PUD for Lot 1 which would provide for market rate apartments and Final Plat to sub-divide the property into two lots—at this time Lot 2 is proposed in concept. The attached application provides for Lot 1, the former Holiday inn building to be converted into studio apartments. These apartments would be developed in two phases. Phase 1 would convert the first two floors into 4-1 BR and 76 studio apartments providing a mix of single and double occupancy units. Phase 2 would develop floors 3 & 4 into a maximum of 75 apartments and will permit us to develop the units based upon market feedback provided from Phase 1. Included in the Phase 1 development would be the creation of a half-court basketball court and state of the art work-out/fitness center in the area which formerly housed the hotel pool. Also included in the Phase 1 development is the creation of a Wi-Fi lounge; theatre room; gaming room; indoor bicycle storage and exterior barbeque area. Necessary management offices and front desk/security check point will be incorporated into the property. (See Attached) At this time no plans have been formulated for the former restaurantibanquet area. For the past three years we have successfully operated Arden Hall as a residential complex for young adults attending Northwestern College. We discovered that the young adults utilized the facility successfully and appropriately, They were an asset to the community, utilizing local restaurants and retail services as well as taking advantage of job opportunities in the immediate area. By all accounts Arden Hall is a residential success story. Kitchen - Each room will be renovated to include counter top, sink, under counter refrigerator, under cabinet drawers and microwave. (See Attached) Additionally, room and common area surface finishes will be upgraded as necessary. 3900 Northwoods Drive, Suite 125, Arden Hills, MN 55112 Phone. 651-481-6290 Fax: (651) 481-628t1 Frnail: robr@davidsoncos.com It is our intention to market these apartments to students attending the local colleges and universities, young professionals and seniors looking for a place to call their own while still having the social contact the common area amenities will provide (we would not expect families based upon the size of the units). All residents will be thoroughly screened including back ground check, credit report, employment or other income verification and prior landlord check. The facility will be equipped with state of the art camera systems and 24 hour security staffing as well as a single point exit and entry utilizing a controlled access system, The developer will participate in the Crime Free Multi Housing Program. The site work/exterior improvements incorporated in this application are consistent with the site and exterior work approved on November 22, 2010—planning case #10-009 including the construction of a concrete sidewalk; street tree requirements; parking lot lighting; fire sprinkler system; etc. It should be noted the aforementioned case provided for bicycle racks along the exterior of the building while this new development provides for a bike storage area inside the building as well as an exterior barbeque area as depicted in the attached site plan. Planning case#10-009 required parking lot lighting additions subject to approval of the city planner and county sheriff which continue to be acceptable. RLK has provided an updated traffic study (see attached) and has concluded apartment use combined with other potential uses on Lot 2 and potential use in the westerly portion of the building "will operate the same, if not better than the previous use on the site (Holiday Inn Hotel)." We believe this development lends itself well with the city's B2 District Plan by providing for updated interior building and site improvements. Additionally the apartments will provide additional residential density (consistent with the B2 goals and objectives) and provide residents/customers eager to utilize the local businesses around them via the sidewalks and roadways planned for the B2 District. Sustainability -Arden Hall Apartments as an occupied and vibrant multi-purpose building fully utilizes a property in which our natural resources have already been invested. As one of your staff shared with me... "the 'greenest" building is one that doesn't have to be built". We are requesting a lot split into two separate parcels: Lot 1 and Lot 2 (Lot 2 is proposed in concept form). We have secured a permit from Ramsey County to access Lot 2 from Lexington Avenue. Respectfully, Robin C. Davidson The Davidson Companies, Inc. cc: Stuart Nolan EN HILLS CITY OF ARDEN HILLS MEMORANDUM DATE: February 16,2012 TO: Rob Davidson,TAT Properties FROM: Meagan Beekman,City Planner SUBJECT; Planning Case#12-002 1201 County Road E—Zoning Code Amendment,Preliminary and Final Plat,Master and Final PUD Enclosed are Staff comments based on a February 21,2012,Development Review Committee meeting. In attendance were Terry Maurer,Public Works Director and City Engineer;Meagan Beekman,City Planner;Dave Scherbel, Building Official;and Sgt. John Eastham,Ramsey County Sheriff. General Comments 1. What will be the process for visitors to enter and leave the building?Single point of entry with a controlled access mechanism,camera will monitor all entrance and fire exit points. What you have previously described is not considered a:controlled access mechanism" which is required as part of participation in the Crime Free Multi-housing Program. We will participate in the CFMP. 2. What rents do you anticipate the project generating? $600-$12001month 3. Park dedication fees will apply. The City is continuing to work with the City Attorney and review neighboring communities' codes to determine a reasonable amount. The park dedication amount recommended will be greater than what was approved for Select Senior Housing. Since the anticipated rent generated is less than the Select Senior Housing project we believe the Park Dedication Fee should be maintained at no more than$175,000 4. Will the properly accept Section S vouchers? 5. What is the maximum capacity for people living in the building? 225 Would you anticipate rooms where more than 1 lodger lived? 50%single occupancy, 50%double occupancy. 5. How will the phasing work for increasing the number of units from 70? Will a portion of units be converted with demand? Or all at once? Phase 2 would be accomplished at one time 7. If SRO's is where the market is heading in terms of private student housing,please provide examples of other communities that have successfully allowed these types of units.NIA 8. Have Bethel University and NWC been made aware of your plans? Yes_ Both institutions have expressed support for the development. Are they willing to support the concept? Safety and Security 1. Vacant Space—The current plan would leave large areas of the building unoccupied. Experience shows us that these areas,even when secured,wind up being a magnet for criminal activity. All vacant space will be secured and monitored by camera/video. The development will be much safer with cameras and people present than its current vacant state. 2. Exterior Lighting—The current blueprint does not include a lighting plan. Since proper lighting plays such an important role in crime prevention this is a major concern. Sheriff recommends a minimum of three foot candles on ground level across entire surface of 1 parking lot. A mutually agreed upon Lighting Plan as discussed with staff shall be f submitted at a later date. 3. Building Access---The current plan does not include any"controlled visitor access" mechanisms. Buildings without these mechanisms have increased calls for service due to the volume of transient traffic. Previously discussed. Traffic- See attached revised traffic study 1. Traffic study does not recognize right in/right out on Lot 2. 2. Traffic study does not contemplate redevelopment of restaurant facility,which could be significant given the size of the existing facility. 3. The drive aisle from the east parking lot to the Lot 2 property line should be widened to 30 feet. 4. It is unclear that parking demand will be met by the proposed parking spaces given the future reuse of the restaurant facility. 5. If Bethel and NWC students are the target market,agreements between Bethel and NWC to provide transit service would help lower trip generation and parking demand. Lot 2 1. Plans should show a conceptual development on Lot 2 which meets the requirements of the B-2 District, similar to what was shown in the Arden Hall development application. Purpose of conceptual drawing is to show it would be possible to develop Lot 2 in compliance with the Guiding Plan for the B2 District and the Design Standards for the B- 2 District in the Zoning Code. 2. 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