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Staff Report City CouncilPH (952) 227-11 00 • ChanhassenMN.gov 7700 MARKET BOULEVARD • PO BOX 147 • CHANHASSEN • MINNESOTA • 55317 Project: Conditional Use Permit Request (Planning Case 2026-03) City Council Review Date: March 23, 2026 60 Day Action Deadline: March 31, 2026 Drafted By: Rachel Arsenault, Associate Planner Staff Report Date: March 18, 2026 SUMMARY OF REQUEST: Applicant is requesting a conditional use permit for screened outdoor storage at the property located at 2100 Stoughton Avenue. STAFF RECOMMENDATION: Staff recommends City Council approve the conditional use permit, subject to the conditions listed herein. LOCATION: 2100 Stoughton Avenue APPLICANT: Luke Buttenhoff OWNER: August Ventures LLC CURRENT ZONING: Industrial Office Park (IOP) 2040 LAND USE PLAN: Office Industrial ACREAGE: 21.21 Acres PROPOSED MOTIONS: “The Chanhassen City Council approves the condi>onal use permit for screened outdoor storage at 2100 Stoughton Avenue, subject to staff condi>ons.” LEVEL OF CITY DISCRETION IN DECISION-MAKING: The city has limited discretion in approving or denying Conditional Use Permits, based on whether or not the proposal meets the conditional use permit standards outlined in the Zoning Ordinance. If the city finds that all the applicable conditional use permit standards are met, the permit must be approved. This is a quasi-judicial decision. No2ce of the public hearing was mailed to all property owners within 500 feet. A public hearing was held at the Planning Commission mee2ng on March 3, 2026. APPLICABLE REGULATION ARTICLE 20-IV CONDITIONAL USES ARTICLE 20-XXII "IOP" INDUSTRIAL OFFICE PARK DISTRICT ARTICLE 20-XXV LANDSCAPING AND TREE REMOVAL BACKGROUND/EXISTING CONDITIONS The property is currently home to an office-industrial-warehouse building that is ac>vely in use separate from this condi>onal use permit request. The west side of the property contains outdoor pickle vats that have occupied this space since roughly 1958 when the Gedney’s pickle factory started opera>ons. Recently, in 2020 there was a development applica>on for food processing and outdoor storage for six silos where the pickle vats are currently located. The City Council approved the development applica>on on July 27, 2020; however, the project was never constructed. ZONING OVERVIEW This property is zoned IOP, Industrial Office Park, in this zoning district screened outdoor storage is a condi>onal use permit. Screened outdoor storage condi>onal use permits must be completely screened with 100 percent opaque fence or landscaped screen. In addi>on, all condi>onal use permits must meet the general issuance standards listed in Sec>on 20-232, this is reviewed under the analysis sec>on of the staff report. SITE PLAN The applicant is proposing a screened outdoor storage area on the west side of the parcel, 3.73 acres in size. The area is proposed to be bituminous paving with guKers and stormwater collec>on. On the corner of Audubon Road and Stoughton Avenue there is a planned infiltra>on basin connec>ng into Chaska’s stormwater system. The second infiltra>on basin is located on the north-west corner of the storage area. The current fencing proposal does not meet the city requirements for 100% opaque fencing; the current proposal includes both 8-foot opaque white vinyl fence and chain link. This will need to be updated in the plan set to fully opaque fencing and is a listed condi>on of approval for this project. LANDSCAPING This project requires Buffer Yard C in landscaping requirements for the southern, western, and northern border of the screened outdoor storage area. Buffer Yard C is required between an office/industrial project and adjacent collector/arterial roads. County Road 61 is an arterial road, Audubon (County Road 15) is an arterial road, and Stoughton Avenue is a collector road. ENGINEERING PROJECT OVERVIEW The applicant is reques>ng a Condi>onal Use Permit to allow screened outdoor storage at the property located at 2100 Stoughton Avenue. The proposal includes improvements to the site consis>ng of addi>onal pavement and new stormwater management features. Plans dated January 27, 2026, and a Stormwater Report dated February 9, 2026, both prepared by Civil Methods Inc., were reviewed by staff. ACCESS The project site is located in the southwest corner of Chanhassen. The project site is bordered on three sides (north, south, and west) by the City of Chaska. The City of Chaska owns and maintains Stoughton Avenue and Audubon Road adjacent to the site. Carver County owns and maintains Chaska Boulevard (County Road 10) and Flying Cloud Drive (County Road 61). Applicant is not proposing addi>onal entrances or exits on the property. Work proposed within or adjacent to these public rights-of-way will likely require permits from both the City of Chaska and Carver County. The applicant shall coordinate with all applicable agencies to confirm permiQng requirements. Proof that all required permits have been obtained shall be submiKed prior to issuance of building permits. GRADING & DRAINAGE The site consists of a single parcel that currently contains a building, bituminous pavement, and storage tanks, with the remaining areas in open grass. Under exis>ng condi>ons, the northern por>on of the site drains to the north and east, while the southern por>on drains to a storm sewer located at the southwest corner of the property within Stoughton Avenue. Under proposed condi>ons, the site will be mass graded to accommodate improved parking and outdoor storage areas. Overall drainage paKerns will remain generally consistent with exis>ng condi>ons. Two infiltra>on basin Best Management Prac>ces (BMPs) are proposed to treat runoff from the new impervious surfaces. Stormwater from the southern por>on of the site will be collected by a trench drain and conveyed to an infiltra>on basin located at the southwest corner of the property. Addi>onal runoff will enter the basin via sheet flow. This basin will discharge to the exis>ng storm sewer in Stoughton Avenue. Stormwater from the northern por>on of the site will drain to a second infiltra>on basin located at the northeast corner of the property, which will discharge to a ditch northeast of the basin. A small por>on of the site will con>nue to drain east without treatment. The proposed infiltra>on basins are designed to provide treatment for new impervious surfaces and to meet applicable discharge rate requirements. EROSION CONTROL The proposed development will exceed one (1) acre of disturbance and will, therefore, be subject to the General Permit Authoriza>on to Discharge Stormwater Associated with Construc>on Ac>vity Under the Na>onal Pollu>on Discharge Elimina>on/State Disposal System (NPDES Construc>on Permit). All erosion control shall be installed and inspected by city staff prior to ini>a>on of site grading ac>vi>es. The applicant has submiKed an erosion control plan and a Storm Water Pollu>on Preven>on Plan (SWPPP). No earth disturbing ac>vi>es may occur un>l an approved SWPPP is developed. This SWPPP shall be a standalone document consistent with the NPDES Construc>on Permit and shall contain all required elements of the permit. The SWPPP will need to be updated as the plans are finalized when the contractor and their sub- contractors are iden>fied and as other condi>ons change. An approved SWPPP shall be submiKed prior to issuing building permits. All erosion control shall be installed and inspected prior to ini>a>on of site grading ac>vi>es. STORM WATER MANAGEMENT Ar>cle VII, Chapter 19 of the City Code establishes the required stormwater management development standards. Sec>on 19-141 states that these standards must be reflected in plans prepared by developers and project proposers in the design and layout of site plans, subdivisions, and water management features. The standards require abstrac>on of runoff and water quality treatment sufficient to achieve removal of 90 percent total suspended solids (TSS) and 60 percent total phosphorus (TP). The proposed project is located within the jurisdic>on of the Lower Minnesota River Watershed District and is therefore subject to its rules and regula>ons. A permit from the watershed district will be required prior to the issuance of building permits. A Stormwater Management Report has been submiKed for review to verify compliance with all applicable stormwater management requirements, including rate control, volume abstrac>on, and water quality treatment. All review comments from both the City and the watershed district must be addressed prior to approval. The proposed design u>lizes two infiltra>on basins to meet stormwater management requirements. Based on the submiKed informa>on, TP and TSS removal standards are being met through treated infiltra>on volume abstrac>on. Required freeboard is currently met for the adjacent on-site building. Addi>onally, the applicant submiKed calcula>ons and a suppor>ng narra>ve demonstra>ng that the proposed drainage design will not adversely impact adjacent proper>es. Both surface water runoff and poten>al groundwater interac>ons associated with the proposed infiltra>on basins were evaluated as part of this analysis. The applicant shall submit final versions of the stormwater modeling (HydroCAD) and the Stormwater Management Report addressing all outstanding comments and confirming compliance with rate control, volume abstrac>on, and water quality standards as part of final CUP approval. Stormwater discharged from the site is routed directly to right-of-way areas owned by the Chaska and Carver County. As a result, permits will likely be required from these agencies to verify that stormwater requirements are met and that the proposed design will not adversely impact downstream systems. The applicant shall provide proof of all required permits prior to issuance of building permits. All stormwater infrastructure on the site will be privately owned and maintained. The applicant shall prepare an Opera>on and Maintenance (O&M) Plan for the private stormwater infrastructure onsite. Maintenance of private stormwater systems is required in perpetuity. The O&M Plan must be approved by the Water Resources Engineer, or their designee, and recorded against the benefi>ng property. The stormwater O&M agreement shall be recorded prior to the issuance of building permits. ANALYSIS The planning commission shall recommend a condi>onal use permit and the council shall issue such condi>onal use permits only if it finds that such use at the proposed loca>on: a) Will not be detrimental to or endanger the public health, safety, comfort, convenience, or general welfare of the neighborhood or the city. The screened outdoor storage will not be detrimental to or endanger public health, safety, comfort, convenience, or general welfare of the neighborhood or city. b) Will be consistent with the objec>ves of the city's comprehensive plan and this chapter. This proposal is consistent with the objecves of t he comprehensive plan and this chapter. c) Will be designed, constructed, operated, and maintained so to be compa>ble in appearance with the exis>ng or intended character of the general vicinity and will not change the essen>al character of that area. The proposal with the staff required condions will be compable in appearance with the intended character of the general vicinity and will not change the essenal character of that area. d) Will not be hazardous or disturbing to exis>ng or planned neighboring uses. The proposal will not be hazardous or disturbing to exisng or planned neighboring uses. e) Will be served adequately by essen>al public facili>es and services, including streets, police and fire protec>on, drainage structures, refuse disposal, water and sewer systems, and schools; or will be served adequately by such facili>es and services provided by the persons or agencies responsible for the establishment of the proposed use. The proposed will be served by the city of Chaska for services, requiring a separate review and approval for the connecons. f) Will not create excessive requirements for public facili>es and services and will not be detrimental to the economic welfare of the community. The proposal will not create excessive requirements for public facilies and services and will not be detrimental to the economic welfare of the community. g) Will not involve uses, ac>vi>es, processes, materials, equipment, and condi>ons of opera>on that will be detrimental to any persons, property, or the general welfare due to excessive produc>on of traffic, noise, smoke, fumes, glare, odors, rodents, or trash. The screened outdoor storage shall conform to these requirements. h) Will have vehicular approaches to the property which do not create traffic conges>on or interfere with traffic or surrounding public thoroughfares. The proposal will ulize exisng property exits & e ntrances. i) Will not result in the destruc>on, loss or damage of solar access, natural, scenic or historic features of major significance. The proposal will not result in the destrucon, los s or damage of solar access, natural, scenic or historic features of major significance. j) Will be aesthe>cally compa>ble with the area. The proposed will be aesthecally compable with th e area. k) Will not depreciate surrounding property values. The proposed will not depreciate surrounding property value. l) Will meet standards prescribed for certain uses as provided in this ar>cle. The proposed will meet standards prescribed for certain uses as provided in this arcle. (Ord. No. 80, Art. III, § 2(3-2-3), 12-15-86; Ord. No. 377, § 23, 5-24-04) Outside Governmental Organiza2on Comments Lower Minnesota River Watershed District Review 1. This project requires Rule B, Erosion and Sediment Control permit. 2. This project requires Rule D, Stormwater Management permit. 3. Property Owner, or authorized agent shall submit an applica>on and relevant exhibits to the LMRWD prior to work commencing. City of Chaska 1. Developer may be required to install curb and guKer on the north side of Stoughton Avenue. 2. Connec>on to the Chaska stormwater system will require approval from the Chaska City Engineer. PLANNING COMMISSION RECOMMENDATION The Chanhassen Planning Commission recommended approval of the requested condi>onal use permit for outdoor storage at 2100 Stoughton Avenue subject to the condi>ons of the staff report. STAFF RECOMMENDATION Staff recommend approval of the requested condi>onal use permit for screened outdoor storage at 2100 Stoughton Avenue, subject to the condi>ons listed herein. Condi2onal Use Permit Condi2ons 1. Outdoor storage area shall be enclosed with 100% opaque fencing 8’ in height. Fencing shall be maintained in good condi>on at all >mes. 2. All materials and equipment stored outdoors shall not exceed the height of the required storage area fencing. 3. Outdoor storage area shall not be used as a Contractors Yard, as defined by the City of Chanhassen. 4. Materials and equipment placed within the outdoor storage area shall not emit odors, produce excessive noise, or be hazardous. 5. Any outdoor ligh>ng for the outdoor storage shall not exceed 25 feet in height when mounted to a light pole. Light measurement at the property line shall not exceed 0-foot candles. 6. All proposed tenants shall be approved administra>vely by the Community Development Director or their designee prior to leasing and occupying the screened area. If the screened outdoor storage changes tenants, the property manager shall receive approval for all subsequent tenants as well. Staff Comments Requiring Plan Revisions Building 1. Fences 7’ and over require a building permit. 2. Retaining walls (if present) more than four feet high, measured from the boKom of the foo>ng to the top of the wall, must be designed by a professional engineer and a building permit must be obtained prior to construc>on. Retaining walls (if present) under four feet in height require a zoning permit. Planning 1. Chain link fencing is not permiKed, update all fencing to be 100% opaque fencing. Gates must also be fully opaque. Update notes throughout plan set to reflect city required fencing. 2. Applicant shall provide a breakdown of the current impervious lot coverage and the proposed addi>onal impervious lot coverage. Impervious lot coverage on this property shall meet the regula>ons for the Industrial Office Park (IOP) zoning district. Forestry 1. Plans shall be updated to meet the requirements for Buffer Yard C on the south, west, and north sides of the screened outdoor storage area which includes the area around the proposed stormwater pond. Applicant shall update the buffer yard calcula>ons on the plan set. 2. Plan>ng plan shall provide a breakdown of the species diversifica>on to verify the proposed meets city code requirements for species diversity. No more than 10% from same species, no more than 20% from same genus and no more than 30% from the same family. 3. Plan>ng schedule to include quan>ty, species (botanical name and common name), and size of replacement. Water Resources & Engineering 1. The applicant and their design Engineer shall work with City staff in amending the plans, dated January 27, 2026, prepared by Civil Methods Inc., to fully sa>sfy plan comments and concerns. Final construc>on plans will be subject to review and approval by staff. 2. It is the applicant’s responsibility to ensure that permits are received from all other applicable agencies with jurisdic>on over the project (i.e. Army Corps of Engineers, DNR, MnDOT, Carver County, LMRWD Watershed District, Board of Water and Soil Resources, MDH, MPCA, etc.). The applicant shall submit verifica>on that all applicable permits have been secured prior to the issuance of building permits. 3. The applicant shall provide final versions of hydrologic and hydraulic (H&H) and water quality modelling with the building permit submiKal. 4. The applicant shall develop a maintenance plan for the onsite stormwater system. An opera>ons and maintenance agreement shall be recorded prior to the issuance of building permits.