STUDY SESSION. If you cannot attend the meeting, please contact the Community Development office, or

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1 AGENDA PLANNING COMMISSION COUNCIL CHAMBERS 6:00 P.M. JULY 18, 2018 STUDY SESSION 1. St. Louis Park 2040 Preliminary Survey Results (45 min.) 2. Retail and Service Size Requirements (60 min.) If you cannot attend the meeting, please contact the Community Development office, or Auxiliary aids for individuals with disabilities are available upon request. To make arrangements, please call the administration department at 952/ (TDD 952/ ) at least 96 hours in advance of meeting.

2 Planning Commission Study Session Meeting Date: July 18, 2018 Agenda Item Comprehensive Plan Review Draft Survey Results RECOMMENDED ACTION: Review and discuss results of 2040 Comprehensive Plan survey. SUMMARY: The draft results of the 2040 Comprehensive Plan survey questions will be handed out for discussion at the meeting. The survey was an on-line survey that was available to complete from May 14 - June 20, It was advertised widely, including the city s website on the banner and as a news item; Twitter, an article in the Sun Sailor, Nextdoor, neighborhood leaders and block captains; ParkTV; an announcement on MyStLouisPark; on TV monitors at city hall and rec center; via a ParkAlert message for those who have opted in for messages; via a flyer in the school district s electronic backpack; to all board and commission members; and to the city s ConstantContact list. Planners also distributed the survey in the community at events and various locations where people gather. Over 2,150 people responded and filled out the survey. The survey asked questions surrounding the major proposed changes to the city s plan. It also asked for comments on the proposed land use changes; this information is still being compiled and will be discussed with planning commission in August. A copy of the survey questions is attached. NEXT STEPS: Additional pieces of the survey are still being compiled and will be presented to the planning commission at the August 1, 2018 meeting. The Plan by Neighborhood section will be presented at the August 1 st meeting as well. The draft St. Louis Park 2040 Comprehensive Plan is on line and can be found here: Attachments: 2040 Comprehensive Plan survey questions Prepared by: Meg McMonigal, Principal Planner

3 St. Louis Park 2040 Comprehensive Plan Survey Welcome! Thank you for taking the time to share your thoughts and help shape the future of St. Louis Park! The following survey asks a number of short, yet important questions that will help guide specific issues and opportunities that are under consideration in the 2040 Comprehensive Plan for St. Louis Park. There is also an interactive map at the end of the survey that allows you to comment on proposed future land use changes. Please help us reach as many St. Louis Park residents as possible by encouraging your friends and neighbors to take the survey. Every voice matters and we want to hear from as many residents as possible! Comprehensive planning is an important tool for cities to guide future development of land and public infrastructure to ensure a safe, well-designed, and sustainable environment for residential, recreational, commercial, industrial, and public activities. For more information about St. Louis Park 2040, please visit: Or you can contact: Meg McMonigal, Principal Planner mmcmonigal@stlouispark.org 1

4 St. Louis Park 2040 Comprehensive Plan Survey Accessory Housing Units An accessory housing unit is a second housing unit located on the same lot as a single-family home. Some common names for this type of housing are: accessory apartment, granny flat, Fonzie flat, and carriage house. There are generally three types: located within the main home, attached to the main home, and detached from the main home. They are typically smaller in size than the main home. Accessory housing units offer an affordable housing option that can accommodate multi-generational living, smaller households and may also enable residents to remain in their homes longer. These units accommodate growth with minimal impact to the neighborhood's character. Please indicate your level of support for the following statement: St. Louis Park should allow accessory housing units in your neighborhood. 1 - No Support Strong Support Level of Support 2

5 St. Louis Park 2040 Comprehensive Plan Survey Duplexes A duplex is housing that consists of two housing units, either stacked one on top of the other or side-byside. Duplexes offer an affordable housing option and can accommodate growth with minimal impact to the neighborhood's character. Please indicate your level of support for the following statement: St. Louis Park should allow duplexes, stacked or side-by-side, in your neighborhood. 1 - No Support Strong Support Level of Support 3

6 St. Louis Park 2040 Comprehensive Plan Survey Three- or Four-Unit Dwellings, Townhomes and Small Apartment Buildings Medium density housing types could include three- or four-unit dwellings, townhouses, and low-rise apartment buildings. These housing types are typically two or three stories in height and designed to be compatible with single-family houses. Medium density housing options can offer more affordability, accommodate smaller households, and accommodate growth with minimal impact to the neighborhood's character. These housing types are more desirable options for home buyers and renters when they provide walkable access to stores, services, restaurants, entertainment, parks and transit. Please indicate your level of support for the following statement: St. Louis Park should allow the potential for three- or four-unit dwellings, townhomes and small apartment buildings in residential areas, within walking distance of commercial centers, corridors, transit services, and parks. 1 - No Support Strong Support Level of Support 4

7 St. Louis Park 2040 Comprehensive Plan Survey Affordable Housing Do you think the City of St. Louis Park has: The right amount of affordable housing Too little affordable housing Too much affordable housing What type(s) of housing do you feel the City of St. Louis Park needs more of (select all that apply)? Townhomes Condominiums Apartments (rental) Accessory housing units (i.e. granny flats) Large single-family houses Small single-family houses Mid-size single-family houses Multi-generational housing Senior housing Affordable rental housing Affordable senior housing Affordable owner-occupied housing Other (please specify) 5

8 St. Louis Park 2040 Comprehensive Plan Survey Neighborhood Mixed Use Development Neighborhood mixed use combines residential and commercial uses within the same building. Examples of successful mixed use development can be seen along Excelsior Boulevard and 36th Street. Mixed use development in a neighborhood commercial area or along a commercial street can bring more neighborhood businesses and new housing options to a neighborhood. Please indicate your level of support for the following statement: Neighborhood buildings that contain a mix of commercial and residential uses should be allowed in existing neighborhood commercial areas, as well as along existing commercial streets. 1 - No Support Strong Support Level of Support 6

9 St. Louis Park 2040 Comprehensive Plan Survey Mobility Mobility is the movement of individuals from one place to another, connecting people to important destinations. Mobility policies that prioritize walking first, followed by bicycling and transit, and then motorized vehicles can reduce carbon emissions, improve human health, increase equity, and enable alternate ways to move people, goods and services across the city. Please indicate your level of support for the following statement: St. Louis Park will plan, design, build and operate the city's transportation system to prioritize walking first, followed by bicycling and transit use, and then motorized vehicle use. 1 - No Support Strong Support Level of Support Shared Mobility Services Car, bike, or ride sharing is an innovative alternative to driving personal vehicles for short distance trips within the city. These systems allow you to rent or check out a bicycle or car for short-term use, or enable users to arrange a ride through a website or application. Some systems have specific pick up and drop off locations and some allow random pick up or drop off throughout a service area. Sharing services can provide a variety of affordable transportation options to a greater number of people. Please indicate your level of support for the following statement: St. Louis Park should pursue shared use mobility options, such as bike, car or ride sharing systems. 1 - No Support Strong Support Level of Support 7

10 St. Louis Park 2040 Comprehensive Plan Survey Climate Action Plan St. Louis Park adopted a Climate Action Plan in February of The Plan s overall goal is to achieve carbon neutrality in the city by There are many ways that the community can work toward achieving this overall goal. Please indicate your interest in the following actions that impact climate change: Reducing your home energy consumption by: (choose all that apply) Retrofitting your home to increase its energy efficiency Considering renewable energy options for your home None at this time Other (please specify) Reducing your vehicle emissions by: (choose all that apply) Driving less; walking, biking and using transit more Purchasing an electric, hybrid or alternative fuel vehicle None at this time Other (please specify) 8

11 St. Louis Park 2040 Comprehensive Plan Survey Reducing Solid Waste The Climate Action Plan also has a goal of reducing solid waste in the community by 50% by The City of St. Louis Park has several programs for recycling. The City also encourages reducing waste to lessen the amount of material that a household discards in garbage, recycling, organics or yard waste. Examples include: choosing products with less packaging, choosing reusable or durable products over single use products, repairing items instead of replacing them, and mulching grass and leaves on your lawn. Please indicate your interest in activities to reduce waste in your home: Very interested, our household practices many waste reduction activities Interested, our household practices some waste reduction activities Interested, but our household doesn't practice waste reduction yet or needs more information Not interested at this time 9

12 Proposed 2040 Land Use Plan and Other Comments St. Louis Park 2040 Comprehensive Plan Survey Please share any other comments, thoughts, or concerns that you have regarding any of the issues presented in this survey. 10

13 St. Louis Park 2040 Comprehensive Plan Survey Please help us with our outreach efforts! The following questions will give us an idea of which demographic groups we are reaching, and those that we need to do a better job to reach. These questions are optional. Please indicate your age range: years old years old years old years old years old years old years old 75 + Gender: Female Male Other (note as you wish) 11

14 Which categories describe you? (Select all that may apply) White Asian Black or African American Hispanic, Latino or Spanish origin American Indian or Alaska Native Middle Eastern or North African Native Hawaiian or Other Pacific Islander Other race, ethnicity, or origin (note as you wish) Which neighborhood do you live in? If you are not sure which neighborhood you live in, follow this link to view a map: Neighborhood Map Or you can enter your address here: 12

15 St. Louis Park 2040 Comprehensive Plan Survey Thank You! The last questions of this survey concern specific land use changes proposed in the 2040 Land Use Plan. Please follow the link below to view the map and provide your feedback on these changes. Click here to view and comment on the Proposed 2040 Land Use Plan 13

16 Thanks for taking the time to participate! For more information about St. Louis Park 2040, please visit: or contact: Meg McMonigal, Principal Planner

17 Planning Commission Study Session Meeting Date: July 18, 2018 Agenda Item 2 2. Discussion: Retail and Service Size Requirements Summary: At a city council study session on February 20, 2018, the city council directed staff to consider options for limiting the size of businesses within commercial districts through zoning regulations in an effort to avoid big box and junior box stores and, in certain areas, promote smaller businesses. Staff considered a variety of alternatives, and identified commercial areas where large retail stores may be inconsistent with city goals. To address the issue and restrict the size of some uses within identified districts, staff offered the following approach as a means to address city council concerns: 1. Rezoning some properties from C-2 General Commercial to C-1 Neighborhood Commercial, Mixed-Use, or other district 2. Adding additional performance standards to the C-1 Neighborhood Commercial district, Mixed-Use, and possibly other districts. At the June 11, 2018 city council study session, no consensus was reached, except to refer the matter to the planning commission for consideration of this issue. Also, to determine whether or not to pursue one or both of these ideas, and to work with staff to further develop the details and provide recommendations. Attachments: Prepared by: Reviewed by: Discussion Graphic relative sizes of businesses Map C-2 areas to be considered for rezoning City Council study session minutes 6/11/18 Joseph Ayers-Johnson, Community Development Intern Gary Morrison, Zoning Administrator Sean Walther, Planning and Zoning Supervisor

18 Agenda Item No.2 Retail and Service Size Requirements Page 2 Meeting Date: July 18, 2018 Discussion Background: Some of the concerns expressed by council members that guided staff s research include the following: According to the city zoning map, the length of Excelsior Blvd, especially at Excelsior & Grand through to the Ellipse area, allows for big box liquor stores. This area is supposed to be walkable and pedestrian-friendly. Large stores are not conducive to that vision. Concerns were expressed about the concentration of liquors stores in the Knollwood area. There was some interest expressed that the city should consider a maximum size for liquor stores. It was the consensus of the council to look at limiting the size of businesses within the C- 2 General Commercial zoning district through zoning regulations. Comprehensive Plan Considerations: Limiting the size of retail establishments in certain parts of the city is consistent with both the 2030 and draft 2040 Comprehensive Plans which include goals aimed at promoting human-scaled buildings and urban environments that are well-integrated into surrounding neighborhoods and creating, preserving, and revitalizing neighborhood commercial nodes and corridors that provide essential neighborhood services, unique neighborhood identity, and gathering opportunities. The draft 2040 Comprehensive Plan also encourages efficient and compact redevelopment and promotes small businesses. The directive is also consistent with St. Louis Park s livable community principles, which includes among other things walkable, mixed use neighborhoods and human-scaled development. Options: Staff gathered information on the size and type of all existing commercial uses in St. Louis Park, and formulated the following ideas for consideration: 1. Rezoning some properties from C-2 General Commercial to C-1 Neighborhood Commercial, Mixed-Use, or other zoning district. 2. Adding additional performance standards to the C-1 Neighborhood Commercial zoning district that limit the size of commercial uses. Staff did not suggest limiting the store sizes in the C-2 General Commercial zoning district. Rezoning: Rezoning some properties from C-2 General Commercial to C-1 Neighborhood Commercial or other district would be consistent with the goals of the comprehensive plan. The C-2 General Commercial zoning district supports regional retailers and more intense development. Additionally, liquor stores are generally only allowed in the C-2 General Commercial zoning district, and some Planned Unit Developments (PUD) including Trader Joe s and Fresh Thyme. In contrast, the purpose of the C-1 Neighborhood Commercial district is to provide for lowintensity, service-oriented, commercial uses for surrounding residential neighborhoods. Limits

19 Agenda Item No.2 Retail and Service Size Requirements Page 3 Meeting Date: July 18, 2018 are placed on the type, size, and intensity of commercial uses in C-1 Neighborhood Commercial to ensure and protect compatibility with adjacent residential areas. Rezoning will require a process of open communication with property owners, and therefore will require some time to complete. The zoning map at the end of this report indicates areas to be considered to rezone from C-2 General Commercial to C-1 Neighborhood Commercial, Mixed- Use or other zoning district. Adding additional performance standards to C-1 district: Before beginning the rezoning process, adjustments should also be made to the C-1 Neighborhood Commercial district to more clearly and effectively define the size limitations. The C-1 Neighborhood Commercial district uses Intensity Classification measures as a way of limiting the off-site impacts of uses, however, a business of any size can be allowed with a Conditional Use Permit (CUP) as long as it meets specified conditions. To strengthen the ordinance, meet the intent of the comprehensive plan and the intent of the C-1 Neighborhood Commercial district, staff proposes establishing a maximum business size of 10,000 sf for retail and service uses. As shown in the chart below, there are no retail or service businesses in the C-1 Neighborhood Commercial district that exceed 10,000 sf, which is a more appropriate scale for a district aimed at fostering neighborhood retail nodes and corridors. Grocery stores are highly sought after retail services close to residential areas and may warrant more space. A new land-use category could be created for grocery stores, which staff suggests permitting up to 10,000 sf; and up to 20,000 sf with a CUP. 60 Size Distribution of Retail, Service, and Liquor Businesses # Businesses C-1 Neighborhood Commercial C-2 General Commercial ,000 5,001-10,000 10,000+ Square Footage

20 Agenda Item No.2 Retail and Service Size Requirements Page 4 Meeting Date: July 18, 2018 Unintended Consequences: As with any zoning change, there are consequences that will need to be researched and considered. Businesses made non-conforming by changes to the ordinance can continue to operate as they currently exist, but cannot expand. C-1 Neighborhood Commercial Zoning District Businesses: As the chart above indicates, there are no existing businesses in the C-1 Neighborhood Commercial district that would become nonconforming if a 10,000 sf maximum business size limit was established. It should be noted that the 10,000 sf maximum would limit the expansion possibilities of those existing businesses that are less than 10,000 sf. Rezoning C-2 General Commercial properties to C-1 Neighborhood Commercial will limit some uses, the residential density and height allowed, and will further limit where liquor stores can be located, which may have the unintended consequence of concentrating them in the remaining C-2 General Commercial zoning districts. Some non-conformities may be created as a result. C-2 General Commercial Zoning District Businesses: The majority of businesses located in the C- 2 General Commercial district that are proposed to be rezoned are less than 10,000 sf in size. Therefore, rezoning to C-1 Neighborhood Commercial may be a good fit. Additionally, three existing liquor stores could be made non-conforming. Next Steps: 1. Planning commission review of proposed C-1 Neighborhood Commercial zoning district regulations Two to three months 2. Rezoning properties from C-2 General Commercial to C-1 Neighborhood Commercial six to 18 months The rezoning process will require numerous meetings with property owners and would begin after changes are approved to the C-1 Neighborhood Commercial district. Additional time may be required for properties proposed to be rezoned from C-2 General Commercial to Mixed-Use or other district, where the proposed zoning is inconsistent with the comprehensive plan land use designation. The process for those parcels may need to wait until after the updated comprehensive plan is effective in April When rezoning from C-2 General Commercial to C-1 Neighborhood Commercial the city does not need to amend the comprehensive plan because both zoning districts are included in the Commercial land use designation.

21 Agenda Item No.2 Retail and Service Size Requirements Page 5 Meeting Date: July 18, 2018

22 Agenda Item No.2 Retail and Service Size Requirements Page 6 Meeting Date: July 18, 2018

23 Agenda Item No.2 Retail and Service Size Requirements Page 7 Meeting Date: July 18, 2018 City Council Study Session Minutes 6/11/18 1. Retail, service and off-sale liquor store size requirements Mr. Walther gave the report and stated there is no formal action required at this time. He stated the discussion will be preliminary research and recommendations on potential zoning map and zoning code amendments, to limit the sizes of certain commercial uses and in certain areas. He further noted staff will be requesting further direction from council on these issues. Mr. Walther stated the policy consideration is as follows: Does the city council support referring staff s rezoning proposals to the planning commission for review and recommendation? Does the city council support referring the proposed size limitations within C1 Neighborhood Commercial and Mixed-Use zoning districts to the planning commission for review and recommendations? Does the city council want to address the size, concentration, or number of liquor stores in C2 districts through the liquor license regulations? Mr. Walther stated council directed city staff on February 20, to consider options for limiting the size of businesses within commercial districts through zoning regulations in an effort to avoid big box and junior box stores and promote smaller businesses in certain areas. Staff identified commercial areas where large retail stores may be inconsistent with city goals. Staff recommends the following to address the issue and restrict the size of some uses within identified districts: Rezoning some properties from C2 General Commercial to C1 Neighborhood Commercial, Mixed-Use, or other district Adding additional performance standards to the C1 Neighborhood Commercial district, Mixed-Use, and possibly other districts Mr. Walther presented a map, noting pink areas are currently C2, and red areas should be rezoned. Councilmember Mavity expressed concern about the old Sam s Club site. Councilmember Hallfin asked if Miracle Mile businesses would be grandfathered in. Mr. Walther stated yes, which would create some non-conformities. Mr. Walter also noted staff suggests the maximum size of 10,000 square feet within the C1 district for retail and service businesses, and up to 20,000 square feet for grocery stores with a CUP.

24 Agenda Item No.2 Retail and Service Size Requirements Page 8 Meeting Date: July 18, 2018 Councilmember Miller asked if this can be done for grocery stores, why this can t be done for liquor stores. Mr. Walther stated it can be done for liquor stores, but there will have to be a good argument behind it. Mr. Walther pointed out some considerations: - Liquor stores not allowed in C1 and MX zoning districts - May prevent existing businesses from growing or expanding in these districts - Would make some existing businesses and liquor stores non-conforming - Considerations for anchor stores Mr. Walther noted if council determines that it wants to address the number, size, and concentration of off-sale liquor stores, consider doing so in liquor licensing code. He noted next steps would be: - Planning Commission review proposed C1 neighborhood commercial zoning district regulations over the next 2-3 months - Planning Commission review rezoning properties from C2 General Commercial to C1 Neighborhood Commercial over the next 6-24 months - Amend liquor license ordinance, if desired, within the next 2 months Mr. Harmening pointed out on Excelsior Avenue the city does not want to have 30,000 40,000 square foot businesses and wants to maintain the smaller business character there; however, that is not the case in all of St. Louis Park s commercial districts, like where Home Depot is. Councilmember Miller noted he likes the overall idea to re-regulate and move to smaller spaces; however, added the quantity of the space does not mean the quality of space. He stated if the city can shift the balance to smaller businesses, he would support that. Councilmember Brausen also stated he supports this, if it is done with a specific purpose. He added he is opposed to limiting the number of liquor licenses but is fine with not allowing them in the C1 district. Councilmember Harris stated she is in favor of neighborhood business, but would like more information about some of the proposed changes where C2 would shift to C1 districts. She noted she would like to refer this to the Planning Commission for further review and would also like the council to review it again before going to public hearing. She said she would like to see more smaller box stores for liquor rather than large Total Wine-type stores, in C2 near Home Depot, but definitely not in the Walker Lake area. Councilmember Rog asked why 10,000 square feet was chosen as the size limitation. Mr. Walther stated initially staff looked at 5,000 square feet but was trying to limit the number of businesses that were non-conforming, so went with 10,000 square feet instead. Councilmember Rog stated the council has discussed wanting to see small neighborhood businesses for quite some time; however, she is not seeing this happen, so she would not be in

25 Agenda Item No.2 Retail and Service Size Requirements Page 9 Meeting Date: July 18, 2018 favor of changing C1 to a maximum of 10,000 square feet, nor is she in favor of increasing the maximum square footage for C1. She said she is in favor of continuing to find ways to help small businesses thrive, within that footprint. Mr. Walther stated for retail this would create a limit. He added he is not clear how size limits and promoting small businesses in St. Louis Park, are connected. Councilmember Rog stated the city has enough liquor stores, and she is in favor of setting some limits. Councilmember Mavity stated she has some concerns about big box stores in the areas and asked if liquor stores can be limited to 6,000 square feet in the C2 district. She added she would like to make sure the city allows for flexibility that might attract neighborhood accessibility and would want to support boutique-type shops in the C1 district. Councilmember Hallfin stated he liked the staff report and agreed with Councilmember Mavity related to flexibility with boutique-type stores. He stated he would like to discuss this issue again, after the Planning Commission reviews it. Mayor Spano stated this is a complicated issue and he now feels less confident that the council knows what they want and is at a consensus. He stated he would like the Planning Commission to review and explore this also and make recommendations to the council. Mayor Spano added he is also a proponent of supporting small businesses, like Miracle Mile where he does most of his shopping, adding however he does see value in the anchor tenant businesses. Councilmember Brausen stated ultimately the marketplace decides most of this; however, the council will need to deal with this sooner rather than later, and before the moratorium ends. It was the consensus of the council to have the Planning Commission review this in detail and send their recommendations to the council.