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VII.1. 1428 Preston Lane Rezoning and Conditional Use Permit; Krzos CITY OF HOPKINS City Council Report 2023-045 To: Honorable Mayor and Council Members Mike Mornson, City Manager From: Ryan Krzos, City Planner Date: May 9, 2023 Subject: 1428 Preston Lane Rezoning and Conditional Use Permit _____________________________________________________________________ RECOMMENDED ACTION MOTION TO deny a first reading of Ordinance 2023-1190 Rezoning 1428 Preston Lane and deny Resolution 2023-017 for a Conditional Use Permit Amendment to allow the accessory school use at 1428 Preston Lane. OVERVIEW The rezoning and conditional use permit amendment applications were submitted by Agape Christi Academy, who is pursuing a purchase of the entire St John’s Interlachen campus. Agape Christi Academy is a private school operator, currently located in Eden Prairie. The campus includes the school and church building which would be respectively used for a K-12 school by Agape Christi and leased to a church congregation. The property also includes a rectory building on a separate legal parcel addressed as 1428 Preston Lane. The applicant is seeking approval to demolish the rectory and replace it with an open recreation area that would be used by the school. 1428 Preston Lane is currently zoned N2-A, Large Lot Suburban Neighborhood. The Hopkins Development code prohibits the demolition of dwelling units in N-zoned properties without approved plans to replace the residence. Furthermore, neither schools or parks and open spaces are eligible uses in the N2-A zone, so the applicant is seeking a rezoning to P2, Public-Institutional. The Conditional Use Amendment request is needed to allow the expansion of the school use onto the 1428 Preston Lane parcel. The Planning and Zoning Commission held a public hearing and reviewed the application at their April 25, 2023 meeting. On a 5-2 vote, the Commission recommended approval of the rezoning and conditional use permit. Staff recommends the City Council deny the rezoning request and the conditional use permit because of the direct conflict with City policy related to demolition of dwelling units. SUPPORTING INFORMATION • Proposed Ordinance 2023-1190 Rezoning 1428 Preston Lane from N2-A to P2. • Proposed Resolution 2023-017 approving a conditional use permit amendment to allow a use accessory to a school at 1428 Preston Lane. Planning and Development BACKGROUND The St. John’s Campus is a long-standing institutional facility in the Interlachen Park Neighborhood. The St. John the Evangelist School building was built in 1950. Also in 1950 the residence serving as the rectory was built at 1428 Preston Lane. At or around that same time, a detached garage for the rectory was built on the parcel containing the church and school building. In 1967, a Special Use Permit was granted to allow the construction of an addition to serve as the church. In 2013, the St. John’s School ceased operating. From the fall of 2015 to 2019, Agamim Classical Academy operated a charter school in the school building and the parish continued to use the church. Agape Christi Academy is now pursuing an acquisition of the entire campus and has submitted the zoning applications. Per the applicant, a new religious congregation will be able to lease the church space once the parish fully consolidates their operations at the Mainstreet property. To provide additional on-site recreational facilities, the applicant is seeking approval of the land use requests to demolish the rectory and construct a play area. According to their submitted plans the recreation area would be a grass field, with evergreen plantings and fencing along the western border. Denial of this request would not preclude Agape Christi from operating their school at this location; however they indicate it would result in a reconsideration of the purchase. Neighborhood Meeting. The Zoning Code requires the applicant to host a neighborhood meeting before the public hearing to explain the project, answer questions and take any comments. This meeting took place on April 11 in the Community Room at St. John’s. A meeting summary is located on the project page on the City’s website. Public Comment. Applications for conditional use permit and rezoning require the Planning and Zoning Commission to conduct a public hearing. The City published notice of the public hearing in the local paper and mailed notices directly to those properties within 500 feet of the subject property. Signage informing the community of a development proposal was also displayed on the site. The City received four comments on this item in addition to approximately a dozen phone calls. The submitted public comments are included as an attachment to the draft minutes of the April 25, 2023 Planning and Zoning Commission meeting. Public Hearing. The Planning and Zoning Commission held a public hearing and reviewed the application at their April 25, 2023 meeting. Five members of the public spoke during the hearing. Two of the speakers spoke directly against the demolition of the rectory. The remaining three residents offered general support of the new school operator at this location. Two of the speakers offering support of the school use expressed concern over vehicle traffic during pick up and drop off. During their review, the Planning and Zoning Commission discussed traffic flow around the school, preservation of single family homes, and the potential of alternative plans to incorporate additional green space without rezoning and demolition of the rectory. The Commission also discussed the nonconforming status of the rectory’s detached garage. Following discussion of the applications, the Commission approved a motion on a vote of 5-2 to recommend that the Council approve the rezoning and conditional use. In general, supporters of the motion expressed interest in facilitating the request which allows for continued institutional use of the campus. Additionally, supporters were concerned that if the request were denied the rectory building could be vacant for an undetermined amount of time. Legal Authority. This request includes a rezoning and a conditional use permit amendment. The rezoning application is considered a legislative action, meaning that the City is formulating public policy and zoning standards to regulate the type of development land uses it desires. Under the law, the City has wide flexibility to create standards that will ensure the type of development it desires. Conversely, the conditional use permit amendment application is process in the same manner as a new conditional use, and is considered a quasi-judicial action. For this type of application, the City is acting as a judge to determine if the regulations within the Comprehensive Plan and the Development Code are being followed. Generally, if a conditional use application is found to meet the requirements it should be approved. As previously noted, staff have determined that the rezoning to the P2 zone is needed for this accessory use to the school to be eligible at this location. Primary Issues to Consider – Rezoning The decision to amend the zoning map, or rezone a parcel, is a matter of legislative discretion that is not controlled by any one criterion or standard. In making recommendations and decisions about zoning map amendments, the Planning & Zoning Commission and City Council must consider all relevant factors, including at least the following: (1) Whether the proposed zoning map amendment (rezoning) is in conformity with the comprehensive plan; and (2) Whether the proposed zoning map amendment (rezoning) corrects an error or inconsistency or will help meet the challenge of a changed or changing condition. Consistency with the Comprehensive Plan. The 2040 Comprehensive Plan guides the subject property, the entire St John’s campus, and the surrounding Interlachen Park Neighborhood as Suburban Neighborhood. The Suburban Neighborhood designation is meant to allow for low density single family neighborhoods and accessory uses such as parks and neighborhood scaled public and institutional uses. The Comprehensive Plan is divided into sections addressing the City’s Built, Social, Natural, and Economic Environments. Each of the sections contains goals and policies to guide growth and development within the City. The built environment section contains the City’s land use, housing, and transportation goals. The land use goal determined to have the most relevancy to this rezoning decision is the goal to support and strengthen the city’s residential areas with reinvestment and appropriate infill. Furthermore, a policy supporting this goal is to encourage the preservation and enhancement of the community’s detached single family housing stock, especially in the Estate Neighborhood and Suburban Neighborhood future land use categories. Staff finds the proposed rezoning to be inconsistent with this goal and policy in that it would enable the demolition of a dwelling unit. The housing goal determined to have the most relevancy to the rezoning is the goal to maintain the quality, safety, and character of existing housing stock. A policy supporting this goal is to protect single family homes from demolition, unless demolition is needed to achieve citywide goals. Staff finds the proposed rezoning to be inconsistent with this goal and policy as the project is not clearly delivering on other citywide goals to the extent that would justify breaking the demolition policy. The above noted policies which seek to protect and preserve single family homes from demolition reflect a long-standing community sentiment; as further reflected in the City’s Development Code. Specifically, demolition of dwellings in N-zoned area is prohibited without a plan to replace the unit. Although the rectory was owned and used by the church, the residential nature of the use informs staff’s determination that this site is subject to the demolition restriction. This is further reflected in the circumstance that when an Institutional zoning category was created in Hopkins, the church and school were rezoned, but the rectory remained residentially-zoned. Nonetheless, staff recognizes that there would be practical issues arising if the owner were to separate the rectory and the detached garage, with it being located on the church parcel. Ultimately, staff finds that the requested rezoning is inconsistent with direct conflict with policies of the Development Code and Comprehensive Plan, and accordingly should be denied. Correction of an Error or Addressing a Change/Changing Condition. The requested rezoning would not correct an error or inconsistency in the mapping of zones in the existing Zoning Map. The subject parcel has a neighborhood zoning designation consistent with the principal residential use of the existing rectory structure. Though it was owned by the church and used as a rectory, the residential zoning was reflective of the actual use, not of the church ownership. Although ownership of the campus is changing, it is staff’s understanding that the school and church use will be unchanged. Consistency with City Code. In addition to the guidance of the Comprehensive Plan, staff also considered the intent of the City policy restricting the demolition of single family homes. The policy was adopted in 2010 as a result of discussions held with community around the demolition of single family homes in order to expand The Blake School campus. The requested rezoning would conflict with the intent of this policy, accordingly staff recommend the request be denied. Primary Issues to Consider – Conditional Use Permit A conditional use permit may be approved only if the City determines that: (1) The proposed conditional use is consistent with the comprehensive plan and the purposes of this development code; (2) The proposed conditional use complies with all applicable provisions of this development code; and (3) The proposed conditional use will not be injurious to the neighborhood or otherwise detrimental to the public welfare. As noted above, staff is determining that establishing a play area, an accessory use to a school, is not eligible at 1428 Preston Lane under the current N2-A zoning. As such, a rezoning to P2 would be necessary for this request to be considered. Furthermore, staff recommends the City deny the rezoning on the basis that said action would be inconsistent with the Comprehensive Plan and City development policy. Notwithstanding, should the City Council be inclined to support the rezoning and thereby the conditional use amendment request the Council should identify how the proposal meets these criteria. The City Council may also approve the proposal with additional conditions on the new recreation area addressing potential negative impacts on surrounding property. For instance, that no lighting be installed in the new play area, or that additional screening is needed to address noise concerns. It should be noted that there are not any specific conditions or standards for accessory playground for schools in the Zoning Code. Additionally, there are not set planting and/or fencing buffering requirements at the boundary between P2 and N zones, as would be the new condition at 1428 Preston along the west property line. Alternatives 1. Deny the proposed rezoning and conditional use permit. This option would not preclude Agape Christi from operating their school at this location as the existing Conditional Use Permit is valid for the current campus. This request is specific to the proposal to demolish the rectory and use it for school-related activities. However, the applicant has indicated that this outcome would lead them to reconsider their purchase of the campus. 2. Approve the proposed rezoning and conditional use permit. The ordinance and resolution are drafted to effectuate this alternative. The Council could impose additional conditions to the approval to address any anticipated impact on neighboring property. Any conditions would have to be related to and proportional to any impacts anticipated from the proposed play area. 3. Continue for further information. If the Council indicates that further information is needed, the item should be continued. Additionally, the City would need to extend the deadline for agency action as the “60-day clock” ends May 26, 2023. The City can extend the deadline an additional 60 days which would end on July 25, 2023. 1 CITY OF HOPKINS Hennepin County, Minnesota ORDINANCE NO. 2023-XXX AN ORDINANCE REZONING THE PROPERTY AT 1428 PRESTON LANE WITH PID 19- 117-21-41-0026 FROM N2-A, LARGE LOT SUBURBAN NEIGHBORHOOD TO P2, PUBLIC-INSTITUATION THE COUNCIL OF THE CITY OF HOPKINS DOES HEREBY ORDAIN AS FOLLOWS: 1. That the zoning classification of N2-A, Large-Lot Suburban Neighborhood, upon the following described premises is hereby repealed, and in lieu thereof, said premises is hereby zoned P2, Public-Institution. 2. The property to be rezoned is legally described as follows: Lot 15, Prestons Interlachen Park, Hennepin County, Minnesota. First Reading: May 9, 2023 Second Reading: May 16, 2023 Date of Publication: May 25, 2023 Date Ordinance Takes Effect: May 25, 2023 ________________________ ATTEST: Patrick Hanlon, Mayor __________________________ Amy Domeier, City Clerk CITY OF HOPKINS HENNEPIN COUNTY, MINNESOTA RESOLUTION 2023-017 A RESOLUTION APPROVING AN AMENDMENT TO A CONDITONAL USE PERMIT FOR PROPERTY LOCATED AT 1428 PRESTON LANE (19-117-21-41-0026) WHEREAS, Agape Christi Academy (“the applicant”), on behalf of the current owner, the Parish of St John the Evangelist, initiated an application to rezone the property located at 1428 Preston Lane (19-117-21-41-0026) from N2-A, Large Lot Suburban Neighborhood to P2, Public-Institutional and requested an amendment to the conditional use permit for the Church and School to allow for an accessory playground on the subject property; and, WHEREAS, the subject property is legally described as Lot 15, Preston’s Interlachen Park, Hennepin County, Minnesota; and, WHEREAS, the procedural history of the application is as follows: 1. That applications for rezoning and a conditional use permit amendment were initiated by the applicant on February 24, 2023 and deemed complete on March 27, 2023; and 2. That the Hopkins Planning and Zoning Commission, pursuant to mailed and published notice, held a public hearing on the application and reviewed such application on April 25, 2023 and all persons present were given an opportunity to be heard; and, 3. That the Hopkins Planning and Zoning Commission reviewed this application during their April 25, 2023 meeting and recommended approval by the City Council; and 4. That the written comments and analysis of City staff were considered. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Hopkins hereby approves an amended Conditional Use Permit for the property located at 1428 Preston Lane subject to the following conditions: 1. Approval of the Rezoning of the subject property from N2-A to P2. 2. Approval of all necessary permits from the Building, Engineering and Fire Departments, and the Minnehaha Creek Watershed District. Adopted by the City Council of the City of Hopkins this 9th day of May, 2023. By:___________________________ Patrick Hanlon, Mayor ATTEST: _______________________________ Amy Domeier, City Clerk City of Hopkins CUP and Zoning Application Narrative March 24, 2023 The Parish of Saint Gabriel the Archangel (6 Interlachen Rd) is considering selling their church and school (3 PIDs) and the adjacent rectory house (1428 Preston Ln) to Agape Christi Holdings, LLC to be operated as a PK-12 school under Agape Christi Academy. To do execute this transaction, two changes are being requested related to house. First, we are seeking rezoning the house from Suburban Neighborhood, Large Lot (N2-A) to Public- Institutional (P2). The intent of Agape Christi is to demolish the existing home to create an open green space for recreation (i.e., recess and PE). Please find attached site plan drawings showing planned changes. Second, we are seeking to extend the existing conditional use permit (CUP) of the church/school to the house property as well. These modest changes affirm all 4 PIDS of this one campus are being transacted together for the common purpose of education, which is already an approved use for the facility. As an illustration of this unified campus, note the PID lines do not follow the layout of the campus such as the garage for the house is on the “church” property. This indicates the campus has always been thought of as a unified property with the priest living on the church campus to this day. There are several benefits/insights for the City and neighborhood to consider: • The demolition of the home will not increase commercial area. • This will aid in stormwater management as it reduces the impervious area. • There are no tax revenue implications since the church/school and house are already exempt from property taxes. • This enables the church/school to continue in service to our community, as it has for over 70 years. • The neighbors may use the green space outside of school hours adding to their enjoyment. Thank you for your consideration. 03.24.2023NORTHPROJECT SITEL100AGAPE CHRISTI ACADEMY6500 BAKER RD, EDENPRAIRIE, MN 55346PLANNINGAPPLICATIONCONTEXTMAP 0feet801" = 40'40120160EXISTINGCONDITIONSPLANPRESTON LANEBOYCE STREETINTERLACHEN ROADNORTH03.24.2023L101AGAPE CHRISTI ACADEMY6500 BAKER RD, EDENPRAIRIE, MN 55346PLANNINGAPPLICATIONRECTORYGARAGEST. GABRIELS CHURCH AND SCHOOLPLAYGROUNDLAWN 0feet801" = 40'40120160DEMOLITIONPLANPRESTON LANEBOYCE STREETINTERLACHEN ROADDEMOLISHGARAGE ANDDRIVEWAYDEMOLISH HOMEREMOVE EXISTINGTREES (2)NORTH03.24.2023L102AGAPE CHRISTI ACADEMY6500 BAKER RD, EDENPRAIRIE, MN 55346PLANNINGAPPLICATION SITE PLANPRESTON LANEBOYCE STREETINTERLACHEN ROAD0feet801" = 40'40120160NORTH03.24.2023L103AGAPE CHRISTI ACADEMY6500 BAKER RD, EDENPRAIRIE, MN 55346PLANNINGAPPLICATIONPROPOSED 4' ALUMINUMPICKET FENCE OR SIMILARPROPOSEDARBORVITAEHEDGE 4' ALUMINUM PICKET FENCEOR SIMILARTHUJA OCCIDENTALIS HEDGEOR SIMILARPROPOSEDPERVIOUSGRASS LAWN