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VII.1. Second Reading: Hopkins Apartments Rezoning; KrzosAugust 16, 2022 Council Report 2022-075 Hopkins Apartments (Former Mann Theatre – Hopkins Cinema 6) Rezoning Proposed Action: Staff recommends the City Council approve the following motion: Move to adopt Resolution 2022-053 approving the second reading of Ordinance 2022-1183 rezoning the property at 1118 Mainstreet (PID 24-117-22-34-0249) from B-2, Central Business District to B-2, Central Business District with a Planned Unit Development. With this motion, staff will finalize a PUD Agreement for City Council consideration. Overview Enclave Companies is proposing a redevelopment of the former Mann Theater located along Mainstreet between 11th Avenue and 12th Avenue South. The applicant’s plans call for a 4-story, 150-unit mixed use building with 5,382 square feet of commercial space. The first reading of the ordinance was held on August 1, 2022. The site is currently guided Downtown Center by the 2040 Comprehensive Plan and zoned B-2, Central Business District. As part of the necessary approvals, the applicant requests rezoning to B-2, Central Business District with a Planned Unit Development (PUD) to allow flexibility from some of the B-2 zoning standards in exchange for a higher quality development. Since the first reading, the developer has agreed to add rooftop solar as an additional exchange. The applicant, Brian Bochman with Enclave Companies, requests approval of the second reading of Ordinance 2021-1183. If approved, a PUD Agreement will be brought to the City Council along with a Parking Agreement for use of the City’s municipal ramp. Together, these agreements will finalize the rezoning of this site and the public assistance committed to the development. Those agreements are anticipated to be brought to the City Council on September 6, 2022. Primary Issues to Consider • Background • Planned Unit Development Review • Alternatives Supporting Documents • Resolution 2022-053 • Ordinance 2021-1183 _____________________ Ryan Krzos, City Planner and Kersten Elverum, Director of Planning Financial Impact: $ N/A Budgeted: Y/N ____ Source: _____________ Related Documents (CIP, ERP, etc.): _________________________________________ Notes: BACKGROUND Development Proposal. The 1.88 acre subject property was originally platted as part of the West Minneapolis Addition in 1887. The existing Hopkins Cinema 6 Movie Theatre was constructed in 1995 as part of a redevelopment of this property which included the movie theatre, three retail spaces and a 5,000 square foot casual dining restaurant. The movie theatre property was owned by the Beard Group who leased it to the Mann Theatres Group. Prior to 1995, the site was occupied by the Suburban Chevrolet automobile dealership. The Hopkins Housing and Redevelopment Authority (HRA) purchased the subject property from Suburban Chevrolet and sold it to the Beard Group in 1995 and executed a development agreement with the developer (the Beard Group) which included both financial and site and building design requirements for the project. The financial requirements created Tax Increment District 1-2 encompassing the subject property which generated tax increment dollars to offset public costs in conjunction with redeveloping the site. That TIF District obligation ended in 2020. On November 20, 2020, Mann Theatre – Hopkins Cinema 6 permanently closed its business due primarily to the continuing COVID-19 pandemic. In 2021, the City reviewed a concept plan related to redevelopment of the site brought forward by a different developer. Enclave Companies recently secured an agreement to purchase the site, and is now seeking land use approvals. The redevelopment would provide a residential mix of 67 alcove, 22 studio, 47 one- bedroom, and 14 two-bedroom market rate apartments; and 5,382 square feet of commercial space on the ground floor accessed from Mainstreet. Review Process to Date The City Council approved the first reading of this rezoning ordinance, along with the corresponding site plan and conditional use permit, on August 1, 2022. Prior to that action, the Planning & Zoning Commission held a public hearing to review these items and recommended approval by the City Council on July 26, 2021. The Planning Commission’s recommendation included a stipulation that the developer shall explore the addition of affordable housing and sustainability certifications and/or features in support of the Planned Unit Development (PUD) request. The applicant has revised their proposal to include rooftop solar panels in support of the PUD request. It is anticipated that residential affordability would be tied to an increased financial assistance request and staff recommends that it not be considered a PUD benefit. Should the City Council approve the second reading of this ordinance and the planned unit development agreement, it would rezone the subject property from B-2, Central Business District to B-2, Central Business District with a Planned Unit Development (PUD) and authorize the Mayor and City Manager to enter into the PUD agreement. PLANNED UNIT DEVELOPMENT REVIEW The purpose of a planned unit development is to allow flexibility from traditional development standards in return for a higher quality development. Typically, the City looks for a developer to exceed other zoning standards, building code requirements or meet other goals of the Comprehensive Plan. In exchange for the flexibility offered by the planned unit development, the applicant is expected to detail how they intend to provide a higher quality development or meet other City goals. The requested rezoning of the site from B-2, Central Business District to B-2, Central Business District with a Planned Unit Development (PUD) would allow the applicant to deviate from some of the zoning regulations as detailed in the table below. The applicant is seeking this flexibility in exchange for the project delivering sustainability features including rooftop solar, electric vehicle charging stations, pedestrian connection from 12th Avenue South to 11th Avenue South, three pedestrian level art installations, and a building design that includes design and amenity features above and beyond minimal underlying zoning requirements. Requested Planned Unit Development Deviations Zoning Category Zoning Requirement Requested Deviation Conditional Use Permit Residential Dwellings Prohibited On 1st Floor Allow Residential Dwellings on First Floor One underground space per unit 120 underground stalls proposed. 30 stalls located in surface lot, and conceptual agreement on lease of 40 stalls in municipal garage Density limited to allowance for R-4 (44 unit/ac) 79.6 units per acre in accordance with guided range of 20-100 units per acre in the Downtown Center Off-street Parking: 2 stalls per unit 1.26 stalls per unit Building Height Four Stories or 45 ft 47.9 ft as measured along Mainstreet COMPREHENSIVE PLAN The development proposal is in conformance with the City’s Comprehensive Plan including the following goals: • Welcome growth to the city by directing most of new housing and employment to the city’s mixed use centers and employment districts. • Encourage all public and private developments to be well-designed, durable, human- scaled and pedestrian oriented. • Support the development of a safe, connected, accessible network of regional and local bicycle and pedestrian facilities in Hopkins. • Grow the supply of housing in Hopkins, particularly in targeted areas. • Support the vision of a community where everyone has access to the resources and opportunities needed to live healthy, active lives. (The site is very conducive to an active lifestyle with a walk score of 90) • Encourage sustainable practices in locating, designing, constructing and maintaining development in the city. • Support the development of a strong, vibrant, livable community that attracts jobs, population and investment. • Maintain a viable downtown core that serves as an economic and social center for the community. • Continue to grow Downtown’s population and jobs base. ALTERNATIVES 1. Vote to approve the rezoning and planned unit development for 1118 Mainstreet. 2. Vote to deny the rezoning and planned unit development for 1118 Mainstreet. Should the City Council consider this option, it must also identify specific findings that support this alternative. 3. Continue for further information. If the City Council finds that further information is needed, the items should be continued. CITY OF HOPKINS Hennepin County, Minnesota RESOLUTION 2022-053 A RESOLUTION APPROVING THE SECOND READING OF ORDINANCE 2022-1183 REZONING THE PROPERTY WITH PID 24-117-22-34-0249 FROM B-2, CENTRAL BUSINESS DISTRICT TO B-2, CENTRAL BUSINESS DISTRICT WITH A PLANNED UNIT DEVELOPMENT, SUBJECT TO CONDITIONS WHEREAS, the applicant, Enclave Companies, initiated an application requesting to rezone the property addressed as 1118 Mainstreet (PID 24-117-22-34-0249) from B-2, Central Business District to B-2, Central Business District with a Planned Unit Development (PUD), and WHEREAS, this property is legally described in Exhibit A; and WHEREAS, the procedural history of the application is as follows: 1. That the above stated application was initiated by the applicant on June 24, 2022; and, 2. That the Hopkins Planning & Zoning Commission, pursuant to published and mailed notice, held a public hearing on the application and reviewed such application on July 26, 2022: all persons present were given an opportunity to be heard; and, 3. That written comments and analysis of City staff were considered; and, 4. That the Hopkins Planning & Zoning Commission reviewed this application during their July 26, 2022 meeting and recommended approval by the City Council, subject to conditions; and 5. That the Hopkins City Council reviewed this application during their August 1, 2022 meeting and agreed with the findings of the Planning & Zoning Commission and approved and approved Resolution 2022-050 approving the first reading of Ordinance 2022-1183 rezoning the property located at 1118 Mainstreet with PID 24-117-22-34-0249; and 6. That the Hopkins City Council conducted a second reading of Ordinance 2022-1183 during the August 16, 2022 meeting. WHEREAS, staff recommended approval of the above stated application based on the findings outlined in the staff report dated August 1, 2022 and the staff memo dated August 16, 2022. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Hopkins hereby approves the second reading of Ordinance 2022-1183 rezoning the property located at 1118 Mainstreet (PID 24-117-22-34-0249) from B-2, Central Business District to B-2, Central Business District with a Planned Unit Development (PUD), subject to the conditions listed below. 1. Approval by the City Council and execution by the Mayor and City Manager of a Planned Unit Development (PUD) Agreement in a form acceptable to the City Attorney. 2. Approval of the development by the Nine Mile Creek Watershed District and conformance with all related conditions. 3. Payment of all applicable development fees including, but not limited to SAC, park dedication and City Attorney fees. Adopted by the City Council of the City of Hopkins this 16th day of August, 2022. By:___________________________ Patrick Hanlon, Mayor ATTEST: _______________________________ Amy Domeier, City Clerk EXHIBIT A Legal Description of subject property Tract A: Lots 1 through 6 inclusive, Block 7, That part of the North Half of the adjoining vacated East-West alley in said Block 7 lying between the extension across it of the West line of said Lot 1 and the East line of Lot 26, in said Block 7, That part of the vacated East-West alley lying North of the center line of said alley and between the extension across it of the East line of Lot 6 and the East line of Lot 26, all in Block 7, “West Minneapolis”. According to the recorded plat thereof, and situate in Hennepin County, Minnesota. Being registered land as is evidenced by Certificate of Title No. 834358. Tract B: Lot Twenty-three (23) except the South 25 feet thereof, front and rear, and all of Lots Twenty-four (24), Twenty-five (25), and Twenty-six (26), Block Seven (7), West Minneapolis, according to the recorded plat thereof, and situate in Hennepin County, Minnesota, together with that part of the South half of the vacated East-West alley in said Block 7 lying between the extension across it of the West line of Lot 26 and the center line of the North-South alley in said Block 7 and together with that part of the West half of the vacated North-South Alley in said Block 7 lying between the extensions across it of the South line of Lot 23 except the South 25 feet thereof and the North line of said Lot 26. Abstract Property Tract C: Lots Seven (7), Eight (8), Nine (9) and Ten (10), Block Seven (7), West Minneapolis, except the South 25 feet of said Lot 10, according to the recorded plat thereof, and situate in Hennepin County, Minnesota, together with that part of the East half of the vacated North-South alley in said Block Seven (7) lying between the extensions across it of the South line of Lot 10 except the South 25 feet thereof and the North line of said Lot 7 and together with that part of the South half of the vacated East-West alley in said Block 7 lying between the extensions across if of the East line of said Lot 7 and the Center line of the North-South alley in said Block 7. Abstract Property. 1 CITY OF HOPKINS Hennepin County, Minnesota ORDINANCE NO. 2022-1183 AN ORDINANCE REZONING THE PROPERTY WITH PID 24-117-22-34-0249 FROM B-2, CENTRAL BUSINESS DISTRICT TO B-2, CENTRAL BUSINESS DISTRICT WITH A PLANNED UNIT DEVELOPMENT THE COUNCIL OF THE CITY OF HOPKINS DOES HEREBY ORDAIN AS FOLLOWS: 1. That the zoning classification of B-2, Central Business District, upon the following described premises is hereby repealed, and in lieu thereof, said premises is hereby zoned B-2, Central Business District with a Planned Unit Development (PUD). 2. The property to be rezoned is legally described in Exhibit A First Reading: August 1, 2022 Second Reading: August 16, 2022 Date of Publication: August 25, 2022 Date Ordinance Takes Effect: August 25, 2022 ________________________ ATTEST: Patrick Hanlon, Mayor __________________________ Amy Domeier, City Clerk 1 EXHIBIT A Legal Description of subject property Tract A: Lots 1 through 6 inclusive, Block 7, That part of the North Half of the adjoining vacated East-West alley in said Block 7 lying between the extension across it of the West line of said Lot 1 and the East line of Lot 26, in said Block 7, That part of the vacated East-West alley lying North of the center line of said alley and between the extension across it of the East line of Lot 6 and the East line of Lot 26, all in Block 7, “West Minneapolis”. According to the recorded plat thereof, and situate in Hennepin County, Minnesota. Being registered land as is evidenced by Certificate of Title No. 834358. Tract B: Lot Twenty-three (23) except the South 25 feet thereof, front and rear, and all of Lots Twenty-four (24), Twenty- five (25), and Twenty-six (26), Block Seven (7), West Minneapolis, according to the recorded plat thereof, and situate in Hennepin County, Minnesota, together with that part of the South half of the vacated East-West alley in said Block 7 lying between the extension across it of the West line of Lot 26 and the center line of the North-South alley in said Block 7 and together with that part of the West half of the vacated North-South Alley in said Block 7 lying between the extensions across it of the South line of Lot 23 except the South 25 feet thereof and the North line of said Lot 26. Abstract Property Tract C: Lots Seven (7), Eight (8), Nine (9) and Ten (10), Block Seven (7), West Minneapolis, except the South 25 feet of said Lot 10, according to the recorded plat thereof, and situate in Hennepin County, Minnesota, together with that part of the East half of the vacated North-South alley in said Block Seven (7) lying between the extensions across it of the South line of Lot 10 except the South 25 feet thereof and the North line of said Lot 7 and together with that part of the South half of the vacated East-West alley in said Block 7 lying between the extensions across if of the East line of said Lot 7 and the Center line of the North-South alley in said Block 7. Abstract Property.