9-19-23 PC Agenda and Packet
A.6:00 P.M. - CALL TO ORDER
B.PUBLIC HEARINGS
B.1 Central Business District City Code Update
C.GENERAL BUSINESS
D.APPROVAL OF MINUTES
D.1 Approve Planning Commission Meeting Minutes dated September 5, 2023
E.COMMISSION PRESENTATIONS
F.ADMINISTRATIVE PRESENTATIONS
G.CORRESPONDENCE DISCUSSION
H.ADJOURNMENT
I.OPEN DISCUSSION
AGENDA
CHANHASSEN PLANNING COMMISSION
TUESDAY, SEPTEMBER 19, 2023
CITY COUNCIL CHAMBERS, 7700 MARKET BOULEVARD
NOTE: Planning Commission meetings are scheduled to end by 9:00 p.m. as outlined in the official by-laws. We will
make every attempt to complete the hearing for each item on the agenda. If, however, this does not appear to be possible,
the Chairperson will notify those present and offer rescheduling options. Items thus pulled from consideration will be
listed first on the agenda at the next Commission meeting.
If a constituent or resident sends an email to staff or the Planning Commission, it must be made part of the public record
based on State Statute. If a constituent or resident sends an email to the Mayor and City Council, it is up to each individual
City Council member and Mayor if they want it to be made part of the public record or not. There is no State Statute that
forces the Mayor or City Council to share that information with the public or be made part of the public record. Under
State Statute, staff cannot remove comments or letters provided as part of the public input process.
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Planning Commission Item
September 19, 2023
Item Central Business District City Code Update
File No.Item No: B.1
Agenda Section PUBLIC HEARINGS
Prepared By Eric Maass, Planning Director
Applicant
Present Zoning
Land Use
Acerage
Density
Applicable
Regulations
SUGGESTED ACTION
Staff recommends the following motion to the Planning Commission:
"The Planning Commission recommends that the City Council adopt the proposed ordinance revising
the Central Business District (CBD) zoning ordinance."
SUMMARY
On July 17th the City Council adopted a moratorium on development within the area zoned Central
Business District (CBD) and directed staff to study potential revisions to the zoning ordinance to assure
that the city's ordinance are aligned with the City Council and communities vision for the future of the
area zoned CBD.
BACKGROUND
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The following is a timeline of meetings that were held to discuss potential ordinance updates.
July 17th – City Council Adopts Moratorium in CBD
August 14th – City Council Meeting Work Session Discussion
August 15th – Community Engagement Open House
September 5th – Planning Commission
September 12th – Economic Development Commission
September 19th – Planning Commission (ordinance public hearing)
September 25th – City Council (formal ordinance adoption anticipated)
DISCUSSION
RECOMMENDATION
Staff recommends the Planning Commission recommend adoption of the proposed draft Central
Business District zoning ordinance.
ATTACHMENTS
Resident Comment Letter
Philips Edison & Company Comment Letter - 8-16-23
CBD Zoning District Update Ordinance
3
Eric,
As you know, I won't be able to attend future public comment times. lt would be helpful if you could
forward my speaking notes (prepared for last night) to the plannlng commission. Note: ladapted a few
points below to respond to specific points made by the commission.
Hi lntro- Grew up here on bighorn drive (north of downtown), now live on appletree (south of
downtown). moved my family here from Richfield, my 2 kids go to school downtown (after daycare
downtown). Wife and I work from home most of the week
Vis ion
Opportunity to be a regional attraction- like 50th and France; Southdale Mall infill; even downtown
H opkins
I do not consider Chaska or Excelsior to be examples of what we want. Chaska's historic
downtown will never have the economic opportunity and Excelsior, until recently, actively
rebuffed density development
Density (5-6 stories)
Mixed use (hotels, restaurants, rooftops, housing)
Street facing
Creative approach to fire code (pedestrian alleys, etc.)
Benefits
lncreased tax revenue and diversified tax base
Especially given aging city infrastructure
Accelerating pillars of 2024 strategic plan and what are sure to be tenets of the new one
Enhanced desireability of surrounding area
Pre empt state regulatory trends (see statewide density laws like CA)
End
l'm hopeful for the future of this town and I think many fellow "covid migrants" from denser areas will
support the vision I outlined.
However, I know some long-time residents may feel otherwise. ln future sessions, especially public
comments on the 18th, l'd recommend this body avoid groupthink
c Appeals to provincialism ("ruins quaint" Chan)
o "Need" for drive thrus (which could be built elsewhere)
o Parking and congestion (when the rest of Chan will continue to grow)
o Onerous design requirements (on materials, parking, and setbacks)
c Lengthy project review process that overweights complaints
c Fire codes
Sincerely,
David Benedit
4
,JD-- PHTLLTP' EDrsoN & ..MPANY
August 16th,2023
RE: Central Business District ZoningDistrict Ordinance - Chanhassen, MN
Dear Chanhassen City Council Members:
il50r NoRTHLAKE DR|VE I CINCINNATI,OH 452,t9
T 5r3.5s4 il rO T 800.875.6585 F 513.554.1820 PHILLIPSEDISON.COH
Phillips Edison & Co, the owner/operator of West Village Station LLC, a Lunds & Byerly's anchored
shopping center located at 800 W. 78th Street in Chanhassen, MN. I'm reaching out to follow-up on the
City Council's Work Session for the proposed zoning ordinance. Phillips Edison & Co. acquired West
Village in February of 2021 and began coordinating with planning staff on a redevelopment of the
shopping center's parking field. During our coordination numerous concept plans were evaluated with
staff to land on a development scenario that was deemed feasible by both parties. A key component to this
plan was a small restaurant with a drive-thru located along W 78m to connect the building with existing
sidewalks promoting the walkability and connectedness that Chanhassen desires.
Lund's & Byerly's success is both essential to our shopping center and the community as a whole.
Lund's, who has term through 2060, has made it clear that visibility and convenient access to parking are
vital to their success and that they will never be in support of anything impeding either of those.
Therefore, at least until after 2060, there will be no buildings built in front of Lund's in their main parking
field. Based on these factors, the proposed Zupa's with a drive-thru, that is tucked as close to the road as
possible is the only development that Phillips Edison would consider moving forward with for the
foreseeable future.
The use of drive-thru's seems to be a point of contention for the Mayor and other members of the
Council. Please understand that the drive-thru has become an essential component for fast-causal
restaurant industry and their customers. Prior to Covid, these restaurants viewed the drive-thru as a nice
feature, but not essential. Since Covid, they find that nearly l/3 of their business comes through the
drive-thru, and that if they do not have one, customers will eat somewhere else offering this convenience.
Operators will no longer open restaurants without them, and at the same time are actively looking to move
locations that do not offer this feature to places where they can get one. It is why we, as a company
owning 300 shopping centers across the country, will no longer build retail buildings without a drive-thru.
We highly recommend that the jurisdiction keep drive-thru facilities within the Downtown West as a
conditional use which would still allow the jurisdiction the ability to deny approval at your discretion.
In the Downtown West area, vehicular traffic will continue to be a driving force for consumers visiting
Lunds & Byerly's, Target and other service-based tenants in the area. These facilities do not inherently
conflict with the jurisdiction's goal to make the downtown area more walkable, and can be designed to
provide the optionality for consumer convenience while supporting business operators. Our team has also
completed a traffic study, trip generation and parking study which shows no overall level of service
impact because of the proposed development. This information has been shared with staff and no
modifications are recommended at this time.
Additionally, we recommend further evaluation by City Council and Staff of components that may
unintentionally adversely impact the stated goal of density and walkability and investment in the proposed
downtown area. For instance, the implementation of specific Maximum Front Setbacks directly conflicts
with the existing utility infrastructure laid out throughout Chanhassen. In order to meet them. millions
will need to be spent unnecessarilv movine utilities and buildine retainins walls. all while removins the
greenspace buffer between the main roadwav and the customers.
CINCINNATI SALT LAKE CITY NEW YORK ATLANTA
5
,JD--PHILLIPS EDISON & COMPANY
If the goal is to promote investment into the community, I fear the zoning ordinance as proposed will
have the opposite effect.
Phillips Edison requests that the City Council take this information into consideration prior to enacting an
updated Zoning Ordinance for the CBD District. We look forward to being a part of the future
Chanhassen Downtown and are hopeful to move forward with the approval of the Caf6 Zupa's City
Council Resolution as previously presented.
Thank you for your consideration.
Sincerely,
Phillips Edison & Company Ltd.,
Management Agent for West Village Station LLC
Quinn Gadow
Director of Development
D +15133382735 | M+15138024967
qeadow@phillipsedison.com I www.phillipsedison.com
r r50 r NoRTHLAKE DR|VE I CTNCTNNATT, OH .{s249
T sr3. s54 il r0 T 800.875.5585 F sr3 ss4.r820 PHTLLIPSEDTSON.COI{
@r///u/^
CINCINNATI SALT LAKE CITY NEW YORK ATLANTA
6
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
ORDINANCE NO.
AN ORDINANCE AMENDING CHAPTER 20
CHANHASSEN CITY CODE
..CBD" CENTRAL BUSINESS DISTRICT
THE CITY COUNCIL OF THE CITY OF CHANHASSEN, MINNESOTA ORDAINS
SECTION 1 Chapter 20, Article 20-XVm of the City Code, City of Chanhassen, Minnesota, is
hereby amended to read as follows:
Sec 20-731 Intent
The intent of the "CBD District is to provide a concentration of specialized goods and services,
commercial and office spaces including cultural, entertainment, finance, restaurants, retail, and
multi-family development that are accessible and in conformance with downtown redevelopment
plans, goals and objectives.
Sec 20-732 Permitted Uses
The following uses are permitted in the "CBD" District:
(a) Restaurant
(b) Entertainment
(c) Commercial Services
(d) Commercial Retail
(e) Commercial Office
(f) Brewery with Taproom producing less than 3,500 barrels subject to section 20-969
(g) Breu'pub subject to section 20-968
(h) Hotels
(i) Multi-family housing
1) When a multi-family housing use has frontage on West 78'h Street, a portion of
the building shall incorporate a restaurant, entertainment, commercial serl'ice,
commercial retail, brewery, brew pub, or microdistillery use.
O Microdistillery with cocktail room subject to section 20-967
(k) Public parking ramp
(l) Government services
Sec 20-733 Accessory Uses
The following are accessory uses in the "CBD" District:
(a) Parking lots and ramps
(b) Signs
(c) Temporary outdoor sales and events subject to section 20-964
(d) Accessory solar energy systems subject to section 20-1093
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(e) Utility Service
Sec 20-734 Conditional Uses
The following uses are conditional uses in the "CBD" District:
(a) Brewery operated in conjunction with taproom producing over 3,500 barrels per year
(b) Day care center
Sec 20-735 Interim Uses
The following uses are interim uses in the "CBD" District
(a) Farmers Markets
(a) There is no minimum lot area, lot frontage, or lot depth.
(b) There is no maximum lot coverage.
Sec 20-737 Setbacks and Height Restrictions
The following performance standards shall be observed in the "CBD" District:
(a) Setback and height standards:
(b) The Central Business District (CBD) shall be broken down into the following character
areas:
1) Downtown Mixed Use - high quality architecture with ground level retail along
w. 78th Street, upper level residential or office, buildings towards the street,
parking in the rear, pedestrian focused.
2) Downtown West - high quality architecture, commercial and retail focus with
more traditional suburban development pattem with parking to the side of
buildings with pedestrian connections from streets to storefronts.
3) Civic/Institutional - high quality architecture with public or institutional uses
serving as anchor destinations and attractions.
Front Yard Build To Zones Side and
Rear Yard
Setback (ft)
Heieht (ft)
CBD
Character
Areas
Primary
Roadways
Secondary
Roadways
Total
Stories
Ground
Story
Upper
Stories
78th Street,
Market Blvd,
Great Plains
Blvd
Laredo Dr,
Chan View Rd,
Kerber Blvd,
Market St
Min Min Max Min Max Min Max
Downtown
Mixed Use
0'- l5'0' - 30'0'I 6*t4 l8 9 t2
Downtown
West
5',-25',l0'- 30'0'1 61'12 15 9 t2
*If building more than 3 stories and adjacent to property zoned as Residential Single Family
(RSF) then the setbacks applicable for the RSF zoning district shall apply.
Sec 20-736 Lot Requirements
The following minimum requirements shall be observed in the .'CBD" District:
8
ffi I-a
ilf
SECTION 2. This ordinance shall be effective immediatel y upon its passage and publication.
PASSED AND ADOPTED this 25th day of September, 2023,by the City Council of the
City of Chanhassen, Minnesota
Elise Ryan, Mayor
(Published in the Chanhassen Villager on )
4) Central Business District character areas diagram:
.^
Laurie Hokkanen, City Manager
Downtown Civic
DowntomMix€d Ure
Downtownllreet
,,
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Planning Commission Item
September 19, 2023
Item Approve Planning Commission Meeting Minutes dated September 5, 2023
File No.Item No: D.1
Agenda Section APPROVAL OF MINUTES
Prepared By Jenny Potter, Sr. Admin Support Specialist
Applicant
Present Zoning
Land Use
Acerage
Density
Applicable
Regulations
SUGGESTED ACTION
"The Chanhassen Planning Commission approves its September 5, 2023 meeting minutes"
SUMMARY
BACKGROUND
DISCUSSION
RECOMMENDATION
10
ATTACHMENTS
Planning Commission Minutes dated September 5, 2023
11
CHANHASSEN PLANNING COMMISSION
REGULAR MEETING
MINUTES
SEPTEMBER 5, 2023
CALL TO ORDER:
Chairman Noyes called the meeting to order at 6:00 p.m.
MEMBERS PRESENT: Chair Eric Noyes, Erik Johnson, Vice-Chair Kelsey Alto, Perry
Schwartz, Ryan Soller, Edward Goff, Steve Jobe.
MEMBERS ABSENT: None.
STAFF PRESENT: Eric Maass, Planning Director
PUBLIC PRESENT:
William John 7609 Kiowa Avenue
Judy Harder West 78th Street
PUBLIC HEARINGS: None.
APPROVAL OF MINUTES:
1. APPROVAL OF PLANNING COMMISSION MINUTES DATED JULY 18, 2023
Commissioner Jobe moved, Commissioner Schwartz seconded the summary Minutes of the
Planning Commission meeting dated July 18, 2023, as presented.
COMMISSION PRESENTATIONS: None.
ADMINISTRATIVE PRESENTATIONS:
1. DISCUSSION ON CENTRAL BUSINESS DISTRICT (CBD) ZONING ORDINANCE
UPDATE
Planning Director Maass updated the Commissioners about the Central Business District Zoning
Ordinance. Mr. Maass shared there are 41 specified permitted uses in the Central Business
District. This is a large number. Staff provided a color coded list of the proposed revisions to the
permitted uses to streamline the process. The existing conditional uses that they propose to
remove are drive-through facilities and convenience stores with gas pumps. They also hope to
move day care facilities from permitted use to conditional use. Mr. Maass gave an overview of
interim uses, such as the farmer’s market, and accessory uses, such as parking lots and ramps.
Mr. Maass stated strong downtown models could be Excelsior, Hopkins, and Wayzata. He
showed a comparison of the lot sizes and setbacks between the current standards in Chanhassen
and the current standards in these three towns based on the zoning code. Based on this review,
they proposed to eliminate minimum lot area and minimum lot frontage to 0. The minimum lot
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Planning Commission Minutes – September 5, 2023
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depth is 0 as well. The lot coverage was proposed to be 100% and the roof type proposed is flat
or parapet.
Mr. Maass displayed a graphic to show the different downtown uses, including downtown core,
highway commercial, and downtown west. The highway commercial areas are not zoned as
Central Business District. He explained the proposed setbacks and heights and commented that
the public felt the Venue should be the maximum number of stories allowed. He showed
examples of the ordinance considerations with the different setback options and building height
for the 0-foot setback and the 20-foot setback. There are certain areas where a build-to-zone
could makes sense dependent on how close the city wants the buildings to the road.
Mr. Maass noted this was not a public hearing but the Planning Commission allow for questions
if desired. Commissioner Jobe asked about the opportunities for multi-story restaurants and
rooftop seating. This would be permitted use and up to the user. Commissioner Jobe asked about
the setbacks and zoning behind Lunds & Byerlys Mr. Maass noted it was proposed that the
ordinance would require any development would need to match the setback requirements for the
residential district it is adjacent to.
Commissioner Schwartz asked why they did not consider cities like Chaska or Waconia as
models, as the selected cities are in Hennepin County. Mr. Maass shared that residents referred to
the cities mentioned earlier, but other downtown models could be included. Commissioner
Schwartz asked if the vision required buy-in from business owners. Mr. Maass stated the goal is
to consider public voice and he believes public engagement would most likely support what is
being proposed based on public engagement. Commissioner Schwartz asked if there was any
leeway in the proposed standards. Mr. Maass stated a business could pursue a variance if there is
practical difficulty on the site, or a planned unit development, or a code amendment through the
city.
Vice-Chair Alto stated the proposed standards are understandable. She commented that any
apartment buildings within the Central Business District should have businesses on the first
level. Commissioner Soller mentioned there could be difficulties based on the market. Vice-
Chair Alto stated the goal is to guide future goals based on current market conditions.
Commissioner Goff asked if the difference between Downtown West and Downtown mixed use
is the setbacks. Mr. Maass answered in the affirmative. Commissioner Goff suggested striking
the antenna language as most individuals use cell phone technology. Mr. Maass asked if it was
the towers he did not want to see or for more information. Commissioner Goff stated there are
enough other technologies to use that antenna should not be used in this zone.
Chair Noyes asked if there would be a required housing element in buildings on upper floors.
Mr. Maass stated the private market would determine the amount of housing needed. The City’s
Comprehensive Plan anticipates where new housing units will be added to the community. The
new standards address more of the aesthetic changes rather than the specific policy.
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Planning Commission Minutes – September 5, 2023
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Commissioner Schwartz asked what composed of the areas shaded as civic area. Mr. Maass
stated it is the library, city hall, post office, fire department, and water treatment plan.
Institutional includes the school.
Commissioner Soller addressed the residential requirements and asked if it was too constrictive.
He asked if it would be better to leave options for developers in certain spaces. Mr. Maass stated
that West 78th and Market Boulevard are the main thoroughfares. He could understand how some
of the offshoot roadways could benefit from certain variations. Commissioner Soller asked if
there is too much restriction based on what is demanded by market expectations. Mr. Maass
asked for a clarification, as the ordinance moves free-standing fast-food restaurants to a
conditional use opportunity. Restaurants absent from a drive-through are permitted near the
sidewalk. It would allow stand-alone restaurants. Commissioner Schwartz asked if current
restaurants with drive-throughs would be grandfathered in as is. Mr. Maass stated as those
businesses exist today, they would be permitted, but if the building were to be destroyed, they
would not be able to build a drive-through.
Commissioner Schwartz stated his concern is there are many parking lots in the Central Business
District. He questioned if there were ways to address this concern in this vision. Mr. Maass
stated the city does not own the property, but the city can adjust the policy to provide guidelines
when property owners make changes.
Vice-Chair Alto asked if the city adjusted parking lot requirements, which Mr. Maass confirmed
to help address the vision. Vice-Chair Alto asked about the 20-foot setback versus the 0-foot
setback. The 20-foot setback would be for those providing opportunities such as a patio. Mr.
Maass stated a build-to-zone would allow the city to keep the parameters in place to allow for
certain flow and necessities, such as bike racks.
Commissioner Jobe asked if there would be allowed drive-throughs in one zone, such as in
Downtown West until other zones are fully developed. Vice-Chair Alto stated additional drive-
throughs could increase the burden of traffic and would not create a walkable downtown
Chanhassen. Commissioner Jobe stated he was concerned about turning away potential
developers.
Commissioner Soller asked where the walkable downtown would be and questioned if a
concentrated walkable downtown would be more beneficial. He referenced the Burnsville
example and wondered if this area would be too big of space for a walkable downtown, but
agreed the traffic flow needs to be addressed. He encouraged the city to consider what
infrastructure could be changed.
Commissioner Schwartz agreed drive-throughs can be concerning, but they are well-utilized, and
mentioned citizens might be concerned if drive-through opportunities are limited. Chair Noyes
mentioned drive-through restaurants could be built outside of the Central Business District. Vice-
Chair Alto stated the example downtowns referred to do not have many drive-throughs. Often,
drive-throughs are not a destination area. Commissioner Schwartz mentioned the referenced
downtowns are landlocked, so there is no space for drive-throughs. He stated a business owner
would not want to build their restaurant in an area where there is no foot traffic or car traffic.
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Planning Commission Minutes – September 5, 2023
4
Mr. Maass stated the highway commercial area is under different zoning requirements. As an
example, if the Chick-fil-A in that area burned down, they would be allowed to rebuild with a
drive-thru as the land it is built on is outside of the Central Business District zoning.
Commissioner Soller stated as long as the Target and Lunds & Byerly are in the downtown west,
there will be a separation in the downtown mixed-use space. Commissioner Johnson agreed with
Commissioner Soller. He stated if there is a desire to make a walkable area, there should be a
focused, central corridor to create a specific downtown feel.
Mr. Maass asked if any of the public attendees had comments.
William John, 7609 Kiowa Avenue, asked about the timeline of the development. Mr. Maass
clarified this is a policy proposal, but it is not specific to any current development.
Judy Harder, West 78th Street, mentioned there is no discussion about the trees, climate, and heat
that can be addressed in the policy. She encouraged that there needs to be consideration of trees
as we consider the future. Additionally, she would enjoy feeling safe biking down West 78th
Street.
Chair Noyes stated trees are a very important part of plans and ordinances and would be factored
into any projects that come before the city. New projects are subject to our landscaping
requirements. He mentioned the build-to area could allow space for trees or other greenery and
natural space.
Vice-Chair Alto mentioned the current city code could be updated to allow natural resource
requirements, such as trees.
Commissioner Soller asked if these changes go far enough to make the desired aesthetic or if
there are other requirements that need to be implemented to achieve the aesthetic. He mentioned
an example of the parking ratio. Mr. Maass clarified this would not be a part of this policy update
but does relate to the plan. He would like to look into requirements such as roof coverings or
other green options.
Vice-Chair Alto mentioned the church in the institutional space is an old building and asked if
there would be opportunities for other companies to purchase this space. It was indicated that this
could be a consideration.
ADJOURNMENT:
Commissioner Schwartz moved to adjourn the meeting, Commissioner Jobe seconded. All
voted in favor and the motion carried unanimously with a vote of 7 to 0. The Planning
Commission meeting was adjourned at 7:06 p.m.
Submitted by Eric Maass
Planning Director
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Planning Commission Minutes – September 5, 2023
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