HomeMy WebLinkAbout7C, Planning Case 10-008 - Arden Plaza Master & Final PUDEN HILLS
Re uest for Council Action �
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Prepared By: Meagan Beekman Council Meeting Date: July 14, 2010
Planning Case 10-008 for an Amendment to the Arden Plaza Master PUD and Final PUD
for Phase 1
Budgeted Amount: Actual Amount: Funding Source:
NA NA NA
Recommendation:
Approve Planning Case 10-008 for an Amendment to the Master Planned Unit Development and Final PUD for
Phase 1 of the Arden Plaza Redevelopment Proposal at 3527 Lexington Avenue South, and Arden Plaza
Development Agreement Amendment No. l, Based on the Findings of Fact and the Submitted Plans, as amended by
the condit�ons in the June 14, 2010, Report to the City Council.
Supporting Documents:
• Memorandum dated July 14, 2010, from Meagan Beekman
• May 5, 2010 Planning Commission Minutes
• Development Agreement
• May 5, 2010, Report to the Planning Commission
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EN HILLS
MEMORANDUM
DATE : June 14, 2010
TO: Mayor and City Council
Patrick Klaers, City Administrator
FROM: Meagan Beekman, City Planner
SUBJECT: Planning Case #10-008
Arden Plaza, LLC (Dennis Trooien)
3585 Lexington Avenue North
Southwest corner of County Road E and Lexington Avenue
Master Planned Unit Development Amendment
Requested Action
Approve Planning Case 10-008 for an Amendment to the Master Planned Unit Development and
Final PUD for Phase 1 of the Arden Plaza Redevelopment Proposal at 3527 Lexington Avenue
South, and Arden Plaza Development Agreement Amendment No. l, Based on the Findings of
Fact and the Submitted Plans, as amended by the conditions in the June 14, 2010, Report to the
City Council.
Background
In June 2009 the Planning Commission and City Council approved a redevelopment application
for the Arden Plaza retail center. The approved Master PUD includes the demolition of the
existing office pod buildings, subdivision of the parcel into four lots, and the construction of four
new buildings. As the proj ect was approved, Building 1 is 14,600 square feet and would be a
Walgreen's store. Building 3 would be attached to Building 1 and would be anticipated to be a
retail and/or restaurant use of 4,700 square feet. Building 2 would be a 6,000 square foot single
restaurant user, and Building 4 would be 18,000 with a user that was yet to be determined. The
entire proj ect would be completed in three phases.
As part of the application, the developer also received approval for a Final PUD for Phase I of
the development. The first phase was for Buildings 1 and 3. The applicant included an Initial
Phase Development Plan (Attachment C) which details what aspects of the proj ect will be
City of Arden Hills
City Council Meeting for June 14, 2010
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constructed with Phase I. While the Final PUD for Phase I has been approved, future approvals
for Phase II and III will require review before both the Planning Commission and City Council.
Since the approval of the Master and Final PUD for Phase I the developer has been in
negotiations with Walgreens Pharmacy. The terms of their agreement will include Walgreens
purchasing the parcel that the Walgreens store will be built on. This is made slightly more
complicated by the existence of Building 3 with would be attached to the Walgreens store, but
located on a separate parcel of land with a zero lot line running along the wall that divides the
stores.
At this time the applicants are requesting an amendment to the approved Master and Final PUD
for Phase I that would allow an alternate development option that excludes Building 3. The
applicants would like to maintain the option to construct Building 3 at a later date, reserving the
space in the interim as a landscaped green space (Attachment C). The applicants feel that the
ability to move forward with the construction of Phase I without the inclusion of Building 3 will
greatly assist in their negotiations with Walgreens and allow the development to take place. In
essence the applicants are requesting the inclusion of an alternate build out scenario; the original
approval of the Final PUD for Phase I which includes Building 3 would remains in place, and a
second option that excludes would also be possible. Everything else about the development
application would remain unchanged from the original approval.
Given the delays of the proj ect due to unforeseen market conditions and extended negotiations
with Walgreens, the applicants are also requesting a one year extension for � ling the Final Plat
with the County and for submitting for building permits for each of the three phases.
The Applicants have submitted a letter describing their request, as well as a site plan of how the
green space would be programmed (Attachment C).
Findin�s of Fact
The Planning Con�mission offers the following findings of fact:
1. On July 13, 2009, the City approved a Master PUD, Final PUD for Phase I, and
Preliminary and Final Plat for the Arden Plaza property.
2. The applicant is requesting approval of an amendment to the Master PUD and Final PUD
for Phase I to allow the addition of an alternate development option that excludes
Building 3.
3. The proposed amendment would increase the amount of landscaped area on the site by
4,700 square feet.
4. The proposed amendment would decrease the amount of signage of the site by 93 square
feet.
5. The proposed application is not anticipated to create a negative impact on the immediate
area or the community as a whole.
City of A�den Hills
City Council Meeting for June 14, 2010
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Recommendation
The Planning Commission reviewed Planning Case 10-008 and recommends approval (4-3) of
the Amendment to the Master Planned Unit Development, Final PUD for Phase 1, and
Development Agreement based on the �ndings of fact and the submitted plans as amended by
the following nine conditions:
l. The applicant shall continue to abide by the conditions of all previous Master PUD and
Final PUD for Phase I, permits, and reviews, except as hereinafter amended.
2. The proj ect shall be completed in accordance with either the original Master PUD and
Final PUD for Phase I, or the submitted alternative development option consistent with
the plans as described in the three exhibits dated March 29, 2010, as amended by the
conditions of approval. Any significant changes to these plans, as determined by the City
Planner, shall require review and approval by the Planning Commission and City
.
Councll.
3. The property owner of lot 3 shall maintain the option in the future to construct Building 3
as approved by the original Master PUD and Final PUD for Phase I.
4. The applicant shall file the Final Plat with Ramsey County by June 1, 2011.
5. The applicant shall obtain building permits for Phase I of the redevelopment proj ect no
later than June 1, 2011.
6. The applicant shall obtain building permits for Phase II of the redevelopment proj ect no
later than June 1, 2013
7. The applicant shall obtain building permits for Phase III of the redevelopment proj ect no
later than June 1, 2014
8. An amendment to the Master PUD and Final PUD for Phase I development agreement
shall be prepared by the City Attorney and subj ect to City Council approval. The
agreement shall be executed and � led with the Final Plat.
9. The applicant shall conform to all other City regulations.
Requested Action
Approve Planning Case 10-008 for an Amendment to the Master Planned Unit Development and
Final PUD for Phase 1 of the Arden Plaza Redevelopment Proposal at 3 527 Lexington Avenue
South, and Arden Plaza Development Agreement Amendment No. l, Based on the Findings of
Fact and the Submitted Plans, as amended by the conditions in the June 14, 2010, Report to the
City Council.
The findings of fact in this planning case report support approval of the request. If the City
Council chooses to deny the request, findings that support this motion must be stated for the
record prior to voting on the motion.
City of Arden Hills
City Council Meeting fo� June 14, 2010
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Deadline for Agenc_y Actions
The City of Arden Hills received the completed application for this request on April 5, 2010.
Pursuant to Minnesota State Statute, the City extended the review period in writing to 120 days.
The City must act on this request by August 20, 2010 (120 days). The City may, with the
consent of the applicant, extend the review period beyond the initial 120 days.
Attachments
A. May 5, 2010 Planning Commission Minutes
B. Development Agreement
C. May 5, 2010, Report to the Planning Commission
City of Arden Hills
City Council Meeting for June 14, 2010
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The Planning Commission (q.-3; Holewa, Modesette, and
Zimmerman dissenting) recommended approval for Planning
Case 10-008 at their May 5, 2010, meeting.
June 14, 2010, City Council Meeting
Planning Case 10-008; Planned Unit Development Amendment; 3585 Lexington Avenue; Arden
Plaza LLC — Public Hearing
City Planner Beekman stated the applicant is requesting approval of an amendment to the
approved Master Planned Unit Development (PUD) and Final PUD for Phase I of the Arden
Plaza redevelopment proj ect to allow an alternate development option that excludes Building 3
and a one year extension for � ling the Final Plat with the County and for submitting for
building permits for each of the three phases. She then provided background information and
stated Staff offers the following five �ndings for consideration:
1. On July 13, 2009, the City approved a Master PUD, Final PUD for Phase I, and
Preliminary and Final Plat for the Arden Plaza property.
2. The applicant is requesting approval of an amendment to the Master PUD and Final
PUD for Phase I to allow the addition of an alternate development option that excludes
Building 3.
3. The proposed amendment would increase the amount of landscaped area on the site by
4,700 square feet.
4. The proposed amendment would decrease the amount of signage of the site by 93
square feet.
5. The proposed application is not anticipated to create a negative impact on the
immediate area or the community as a whole.
City Planner Beekman stated if the Planning Commission recommends approval of Planning
Case 09-023, Staff recommends including the following nine conditions:
1. The applicant shall continue to abide by the conditions of all previous Master PUD and
Final PUD for Phase I, permits, and reviews, except as hereinafter amended.
2. The proj ect shall be completed in accordance with either the original Master PUD and
Final PUD for Phase I, or the submitted alternative development option consistent with
the places as described in the three exhibits dated March 29, 2010, as amended by the
conditions for approval. Any signi� cant changes to these plans, as determined by the
City Planner, shall require review and approval by the Planning Commission and City
Council.
3. The property owner of lot 3 shall maintain the option in the future to construct Building
3 as approved by the original Master PUD and Final PUD for Phase I.
4. The applicant shall file the Final Plat with Ramsey County by June 1, 2011.
5. The applicant shall obtain building permits for Phase I of the redevelopment proj ect no
later than June 1, 2011.
6. The applicant shall obtain building permits for Phase II of the redevelopment project no
later than June l, 2013.
7. The applicant shall obtain building permits for Phase III of the redevelopment proj ect
no later than June 1, 2014.
8. An amendment to the Master PUD and Final PUD for Phase I development agreement
shall be prepared by the City Attorney and subj ect to City Council approval. The
agreement shall be executed and filed with the Final Plat.
9. The applicant shall conform to all other City regulations.
Chair Larson opened the floor to Commission questions.
Commissioner Holewa stated the City and Staff had spent a lot of time on developing the
design standards and vision for this area and recommending approval of this amendment would
be moving the City away from the approved vision for this area and building 3 might never be
built.
City Planner Beekman explained the building 3 would remain in the Master PUD as a potential
future development and this amendment would only remove it from being a requirement with
the construction of Phase I. Staff did not anticipate the amendment to create a negative impact
on the i�lmediate area, the overall vision for the B2 District, or the community as a whole.
Commissioner Zimmerman stated he was please to see the developer reacting to the current
economy. He stated it was favorable that this area would be landscaped at this time rather than
leave it empty or having an unoccupied building on the property. There was a possibility that
building 3 would be built in the future once the economy has improved and the demand for this
type of space has increased.
Commissioner Thompson agrees by approving this amendment the City runs the risk of
building 3 never being built but the green space in its place is appreciated. There is the
capacity for expansion in existing building 5 at this time for additional business and there
would not be a large vacant building on the property. She asked if the land ownership would
be the same and if the land would still be separated into three parcels.
City Planner Beekman explained the approved Preliminary Plat is still moving forward. The
first stage was Walgreens and they would purchase lot 1 and lot 3 would remain a separate lot
but would be maintained under the same ownership as building 5, which is Wellington
Management. If there is a tenant who would prefer to own the property then Wellington
Management does have the option to sell lot 3.
Cornmissioner Holewa asked if the parking lot would be constructed with Phase I and who
would retain the ownership and be responsible for the maintenance of the proposed green
space.
City Planner Beekman explained the only change to Phase I would be the exclusion of building
3 at this time. The parking lot would be completed with Phase I. The owner of the property for
building 3 would be Wellington Management unless it is sold to another party such as
Walgreens. The developer, Arden Plaza LLC, is paying to have the green space added and
Wellington Management, who would currently own it, would be responsible for the
maintenance of the property unless this property is sold.
Commissioner Modesette stated the approval of this amendment does close the door on the
construction of building 3 and with that being the case she would like to have seen the property
laid out differently and the proposal include the expansion of building 4. She clarified her
preference would be to see the developer work out an agreement with Walgreens and move
forward with some development on this site. She asked Dennis Trooien what the logic was for
maintaining the option to build building 3 if Walgreens does not want to have adjoining tenants
and this is a point of contention in the negotiations.
Mr. Dennis Trooien, owner Arden Plaza LLC, stated there was the possibility that building 3
could be built in the future. Walgreens may buy lot 3 and if their business model changes to
include additional services such as a clinic or they have a need for expansion they may then
develop building 3. He explained that Walgreens would be informed that the development of
building 3 must conform to what the City has approved as part of this development and would
need to be attached to their building unless they request an amendment from the City.
Walgreens has not indicated they would sign an agreement if building 3 were removed from the
requirements for Phase I but this would substantially assist in the negotiations.
Commissioner Zimmerman asked about CVS Pharmacy and if they were a potential tenant. He
also asked where they would stand on the development of building 3.
Mr. Trooien stated CVS had expressed interest in the property three years ago but Walgreens
had won out. The economy has impacted Walgreens moving forward with the development of
this property at this time. He stated that they have started talking to CVS about the property
and their interest in it as a back up to the Walgreens negotiations not working out. He also
stated the development of building 3 would be the same for CVS. Both of these tenants would
like to purchase lot 3 in order to gain the additional acreage for future expansion, additional
parking, or other development but they do not want to put in a situation that requires them to
construct this building immediately.
Commissioner Reiff asked if both Wellington Management and Arden Plaza LLC have actively
recruited potential tenants for building 3.
Mr. Trooien stated that they have actively looked for tenants but have been unsuccessful at this
time and the overall demand for this type of space is low.
Chair Larson opened the public hearing at 7:17 p.m.
Chair Larson invited anyone for or against the application to come forward and make comment.
Chair Larson closed the public hearing at 7:18 p.m.
Commissioner Reiff moved, seconded by Commissioner Thompson to recommend
approval of Planning Case 10-008 for an Amendment to the Mast PUD and Final PUD for
Phase I, at 3585 Lexin�ton Avenue based on the findings of fact, submitted plans, and the
five conditions in the Ma_y 5, 2010, plannin� case report.
Commissioner Holewa stated he is not in favor of this amendment. The Master Plan was
approved as part of the overall vision for this area and this included the construction of building
3. He stated the approval of this amendment would no longer guarantee that building 3 would
be constructed.
Commissioner Thompson stated she is in favor of this amendment at this time. The owner and
developer of the property have looked for tenants and based on the current economy there are
none available. She clarified she would rather see the building not built at this time than sit
empty and the addition of the green space in its place is favorable to the City and the overall
look of the property. There is also capacity in the other buildings for expansion
Commissioner Zimmerman stated he would be voting against this amendment because the City
will be taking the decision to construct building 3 out of their hands and putting into the hands
of the owner of lot 3 who may potentially be the same owner as lot 1.
Chair Larson stated this request is a response to the current economy and he believes that if the
developer had tenants for building 3 they would construct the building as proposed in Phase I.
He stated he would vote in favor of this amendment.
Commissioner Hames stated she would vote in favor of the amendment because the decision to
construct building 3 will be in the business owner's hands. When they have a need to expand
they will have the capacity to do so.
Cornmissioner Holewa stated this amendment did not provide any guarantee that the proposed
green space would ever be developed into building 3 or that this would comply with what the
City had envisioned for this area.
Commissioner Reiff expressed surprise that there was opposition to the requested amendment.
The plan being proposed is a good plan and does comply with the vision of the City. The
option to construct building 3 is still there it is just not a requirement as part of Phase I. By not
having building 3 constructed at this time the traffic flow in this area will be less impacted.
Commissioner Modesette explained that approving this amendment opened the door to
Walgreens controlling more space with fewer tenants and they would then have the opportunity
to build a larger store than the City had approved.
The motion was called to a vote.
The motion carried (4-3).
Ayes: Chair Larson, Commissioners Reiff, Thompson, and Hames
Nays: Commissioners Holewa, Modesette, and Zimmerman
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June 14, 2010, City Council Meeting
ARDEIv PLAZA REDEVEL4PMEN'T
REDEVELOPIVIENT AGRE�MENT PHASE I
Ai��EI�TDIVIENT NO. 1
PC# �0-00�
�.0 Parties. This Redevelopment Agreement is dated the � 4th day of �une, 2fl 10 and is
entered into by and between the City of Arden H�lls, a Min.�esota statutory cit� ("City");
and Arden Plaza, LLC, a 1V�innesota Iimited iia�ility corporation ("Arden �'laza"�.
2.0 Recitals.
A. Arden Plaza is the record fee ow�er o� the fo�lowing des�ribed property
("Property") situated in the City of Arden Hills, County of Rar�sey, Szate of
.
M�nnesota:
T�ie north 8 72 feet of the east one-half (1 /2) of the
nartheast quarter of Sectior� 34, Towns�i� 30 north,
�ange 23 west, except the west �25 feet t�iereof;
excepting from the above described Tract, the vv�st
200 feet of the north 283 feet.
Subject to rights of public, those �ortions thereof
taken for �ighways, said �oriions being the north 43
feet t�ereof and the east 33 feet �hereof and that pari
thereof lying north and east of the connecting cur�.
B. T�ie Proper#y is being pla#ted as Lots �, 2, 3, and 4, Block l, Arden �laza
Redevelo�ment.
C. The use and �ede�elopment of the Property is subject to the City's Development
Reguiations and the t�rr�s a�d condit�ons of that ce�rtain document �"�rigir�al
Redevelopment Agree�nent") �.��roved by t�e City on July 13, 2009, in
connection with the City's review of City P�anning �ile PC#09-011.
�. �n the 5�' day of Apr�l, �O l�, A.�den Plaza subn�itted an a lication to arr�end t�e
pi�
Original Redevelopment Agreement, general�y, as it r�lates io t�e ov�ra�l phasing
of the redevelopr�ent of the Propert� and specifically as i# re�ates to t�e
�edeveioprrient of proposed �ot 3, B�ock l, Arden Plaza. The Redevelop���t and
the construction of �uild�ng 3 on said lot (�ierein "Arnendment I�Tc�. 1").
E. �`he Arder� P�aza a�plication to approve A�nendrr�ent �o. 1 was submitted on City
app�oved forn�s together with the follovving documents:
1. Written statement co�sisting of pages 1 and 2 dated April 2, 2010.
2. Site Plan dated March 29, 2010.
�. Landscape Pla.n dated �Vlarch 29, 2010.
4. Elevation Plan A-300 dated March 26, 2010.
3.fl City Plannin� Con�mission �eview and Recor��endations. On the Sth day of Nia�,
201 �, at a�ublic hearing, t�e City Planning Commission considered the request of Arden
�'laza to approve Amendment �o. l, the reports a�d con�ments o� the City's staff and
consu�tants, the reports and comments of Arden Plaza, public comments and
recommended approval of A�end�nent No. l, subject to certain conditions.
4.0 City Counci� Review. (Jn t�ie 14th day of J�.ne, 2010, t�e City Council reviewed tl�e
�equest of Arden Plaza to approve A�nen�ment No. l, the reports and con�n�ents of the
City's staff and consu�tants, the reports and co�ler�ts of Arclen Plaza, the
reco��nendations of the Planning Comnlissio�, and, approved An�end�en� No. l, subject
to the tei-�ns and condition contained herein.
5.0 Ter�s and Conditions. In consideration of the City's redeve�opn�ent a�prova�; in
compiiance with the City's development regulations; and in conside�ation of the
undertal�ir�gs expressed herein, t�e parties agree t�at Sections 5{A�(1), S�A�(2j, 5(�)�3),
an�. 5{B)t2) o� the �riginal Redevelopment Agreement are a�nended to read; and that
Section 5(A)(11) is added to �he Original Redevelopment Agreement to read as follovvs:
A. Section S(A�� 1). Arden Plaza s�ial� appl� for and obtair� building permits for
P�ase I of the Redevelopment Proj ect no later than June 1, 2011 or, at least fo�ty-
�ive t45) days �rior to such date, shall request an extension of time to obtain
building permits for Phase I. Failure to either o�tain building perm�ts or reques�
a� ex�ension within th� required time �eriods me�.ns that any redevelopment of
t�e area included in Phase I may re�uire �.n amendment to the PL�D-Master Plan
and shali require compliance with the City's then current development
.
�egu ations.
�. Section 5 A�2). Arden Plaza shall apply for the P�JD-Final P�an for Phase �I of
the Redeve�opment Proj ec� no later t�an June l, 20 � 3 or, at least forty-five t45 )
days prior to such date, shall request an extension of tirne to apply for the PUD-
Final �'lan for Phase II of the �edevelo�ment Project. Failure to ap�ly for either
and approval or an extension within the required time periods mear�s that any
redevelopment of the area included in Phase II shall require an a�ne�dment to �he
PUD-Master P1an and the redevelopn�ent of the area inc�uded in �'hase II shall
comp�y with the then current City regulations. Arden Plaza shall provide yearly
updat�s to the City at the end of each year regarding the status of futu�e phases.
C. Section {5 �A)�3). Arder� Plaza shail apply for a PUD-Fi�al Plan for Phase �II of
the Redev�lopment Proj ect no �ater than �une 1, 2� 14 or, at least forty-five (45 )
days prior to such. daie, shall request an extens�on of time to apply for th� PU�-
�inal �'lan for Phase III. Fa�lure to either apply for approval or an exte�sion
wit�in the required time periods means that any �edevelopm�nt of tl�e area
�
included in P�iase �II shall require an amendment to the PIJ�-iVlasier P�an and the
redevelopment of the area included within P�ase III shall be in compliance with
�he ther� cu�-rent City regulation�,
D. Section {5�(A� 11). Proposed Lot 3, Block �, Arden P�aza Redevelopment and
building 3 to be located thereon may be developed in com�liance vvith the terms
and conditions of the Original Redevelopment Agreement prior to �he adoption of
Amendn�ent No. 1 or, in the alternative, in con�pliance v�ith �he �la�s defined in
Sect�on 2.O�E� �iereof.
E. Section S(8��2). Arden Plaza shall file t�e Fina� Plat with Ra�nsey County no
later than June 1, 201 �.
�N WITNES S WHEREO�, the City and Arden Plaza have caused this Ame�c�ment
No. 1 to be executed as o� th� date and year first above written.
3
CI'TY OF ARD�N H�LLS,
a 11�innesota statutory city
Stanley, D i�arpstead, �VIAYOR
ATTEST:
P�.trick Klaers, City Administrator
S�'ATE OF M�ESO�'A )
j ss.
COLT�TY OF j
On this da� of , 201 �, �efore me, a notary public within and for sai�l
cou�ty, personally appeared Stan�ey Harpstead an�. Patrick Klaers, to me knovvr� to be
respective�y the �a�or and City Administrator of the City of Arden �i�ls, and they executed t�e
foregoing instrt.�.nent and acknowledged that they executed the same b� authority of and on
behalf of City of Arden Hiils.
l�otary Publi�
�
ARDEN P��Z�, LLC
By.
�'rinted Name :
Title:
STAT� O� Mi7N(NESOTA �
) ss.
CaL�TY O� )
On this day �� , 2010, before me, a notary public �vithin and for said
county, personall� , the flf Arde�. P�aza, a Mir�nesota
limited liability company, and owner of the above described property and he�they executed the
foregoing instrument and acknowledged that he�she/they executed the same on behalf of said
corporation.
�otary Public
'TH�S �iSTRUIVIENT WAS DRAFTED BY:
PETERSON, ��.AM & BERGi��, P,A. �JPF)
55 East Fifth S#., #800
St. Paul, MN 55101
(651) 291-8955
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June 14, 2010, City Council Meeting