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Staff ReportPH (952 ) 227-1100 • ChanhassenMN .gov 7700 MARKET BOULEVARD • PO BOX 147 • CHANHASSEN • MINNESOTA • 55317 Project: Conditional Use Permit Request (Planning Case 2026-03) Planning Commission Review Date: March 3, 2026 60 Day Action Deadline: March 31, 2026 Drafted By: Rachel Arsenault, Associate Planner Staff Report Date: February 25, 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 Planning Commission recommend approval of 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 Planning Commission recommends approval of the conditional use permit for screened outdoor storage at 2100 Stoughton Avenue, subject to staff conditions.” 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. Notice of this public hearing has been mailed to all property owners within 500 feet. 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 actively in use separate from this conditional 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 operations. Recently, in 2020 there was a development application for food processing and outdoor storage for six silos where the pickle vats are currently located. The City Council approved the development application 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 conditional use permit. Screened outdoor storage conditional use permits must be completely screened with 100 percent opaque fence or landscaped screen. In addition, all conditional use permits must meet the general issuance standards listed in Section 20-232, this is reviewed under the analysis section 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 gutters and stormwater collection. On the corner of Audubon Road and Stoughton Avenue there is a planned infiltration basin connecting into Chaska’s stormwater system. The second infiltration 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 condition 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 requesting a Conditional Use Permit to allow screened outdoor storage at the property located at 2100 Stoughton Avenue. The proposal includes improvements to the site consisting of additional 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 additional 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 permitting requirements. Proof that all required permits have been obtained shall be submitted 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 existing conditions, the northern portion of the site drains to the north and east, while the southern portion drains to a storm sewer located at the southwest corner of the property within Stoughton Avenue. Under proposed conditions, the site will be mass graded to accommodate improved parking and outdoor storage areas. Overall drainage patterns will remain generally consistent with existing conditions. Two infiltration basin Best Management Practices (BMPs) are proposed to treat runoff from the new impervious surfaces. Stormwater from the southern portion of the site will be collected by a trench drain and conveyed to an infiltration basin located at the southwest corner of the property. Additional runoff wil l enter the basin via sheet flow. This basin will discharge to the existing storm sewer in Stoughton Avenue. Stormwater from the northern portion of the site will drain to a second infiltration basin located at the northeast corner of the property, which will discharge to a ditch northeast of the basin. A small portion of the site will continue to drain east without treatment. The proposed infiltration 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 Authorization to Discharge Stormwater Associated with Construction Activity Under the National Pollution Discharge Elimination/State Disposal System (NPDES Construction Permit). All erosion control shall be installed and inspected by city staff prior to initiation of site grading activities. The applicant has submitted an erosion control plan and a Storm Water Pollution Prevention Plan (SWPPP). No earth disturbing activities may occur until an approved SWPPP is developed. This SWPPP shall be a standalone document consistent with the NPDES Construction 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 identified and as other conditions change. An approved SWPPP shall be submitted prior to issuing building permits. All erosion control shall be installed and inspected prior to initiation of site grading activities. STORM WATER MANAGEMENT Article VII, Chapter 19 of the City Code establishes the required stormwater management development standards. Section 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 abstraction 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 jurisdiction of the Lower Minnesota River Watershed District and is therefore subject to its rules and regulations. A permit from the watershed district will be required prior to the issuance of building permits. A Stormwater Management Report has been submitted for review to verify compliance with all applicable stormwater management requirements, including rate control, volume abstraction, and water quality treatment. All review comments from both the City and th e watershed district must be addressed prior to approval. The proposed design utilizes two infiltration basins to meet stormwater management requirements. Based on the submitted information, TP and TSS removal standards are being met through treated infiltration volume abstraction. Required freeboard is currently met for the adjacent on-site building. Additionally, the applicant submitted calculations and a supporting narrative demonstrating that the proposed drainage design will not adversely impact adjacent properties. Both surface water runoff and potential groundwater interactions associated with the proposed infiltration 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 abstraction, 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 Operation 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 benefiting property. The stormwater O&M agreement shall be recorded prior to the issuance of building permits. ANALYSIS The planning commission shall recommend a conditional use permit and the council shall issue such conditional use permits only if it finds that such use at the proposed location: 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 objectives of the city's comprehensive plan and this chapter. This proposal is consistent with the objectives of the comprehensive plan and this chapter. c) Will be designed, constructed, operated, and maintained so to be compatible in appearance with the existing or intended character of the general vicinity and will not change the essential character of that area. The proposal with the staff required conditions will be compatible in appearance with the intended character of the general vicinity and will not change the essential character of that area. d) Will not be hazardous or disturbing to existing or planned neighboring uses. The proposal will not be hazardous or disturbing to existing or planned neighboring uses. e) Will be served adequately by essential public facilities and services, including streets, police and fire protection, drainage structures, refuse disposal, water and sewer systems, and schools; or will be served adequately by such facilities 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 connections. f) Will not create excessive requirements for public facilities and services and will not be detrimental to the economic welfare of the community. The proposal will not create excessive requirements for public facilities and services and will not be detrimental to the economic welfare of the community. g) Will not involve uses, activities, processes, materials, equipment, and conditions of operation that will be detrimental to any persons, property, or the general welfare due to excessive production 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 congestion or interfere with traffic or surrounding public thoroughfares. The proposal will utilize existing property exits & entrances. i) Will not result in the destruction, loss or damage of solar access, natural, scenic or historic features of major significance. The proposal will not result in the destruction, loss or damage of solar access, natural, scenic or historic features of major significance. j) Will be aesthetically compatible with the area. The proposed will be aesthetically compatible with the 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 article. The proposed will meet standards prescribed for certain uses as provided in this article. (Ord. No. 80, Art. III, § 2(3-2-3), 12-15-86; Ord. No. 377, § 23, 5-24-04) Outside Governmental Organization 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 application and relevant exhibits to the LMRWD prior to work commencing. City of Chaska 1. Developer may be required to install curb and gutter on the north side of Stoughton Avenue. 2. Connection to the Chaska stormwater system will require approval from the Chaska City Engineer. STAFF RECOMMENDATION Staff recommend approval of the requested conditional use permit for screened outdoor storage at 2100 Stoughton Avenue, subject to the conditions listed herein. Conditional Use Permit Conditions 1. Outdoor storage area shall be enclosed with 100% opaque fencing 8’ in height. Fencing shall be maintained in good condition at all times. 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 lighting 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. 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 bottom of the footing to the top of the wall, must be designed by a professional engineer and a building permit must be obtained prior to construction. Retaining walls (if present) under four feet in height require a zoning permit. Planning 1. Chain link fencing is not permitted, 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 additional impervious lot coverage. Impervious lot coverage on this property shall meet the regulations 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 calculations on the plan set. 2. Planting plan shall provide a breakdown of the species diversification 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. Planting schedule to include quantity, 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 satisfy plan comments and concerns. Final construction 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 jurisdiction 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 verification 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 submittal. 4. The applicant shall develop a maintenance plan for the onsite stormwater system. An operations and maintenance agreement shall be recorded prior to the issuance of building permits.