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1/11/2023 - Planning Commission - Regular - Agendas CITY OF SPRING PARK PLANNING COMMISSION AGENDA PUBLIC HEARING JANUARY 11, 2023 – 6:00 PM SPRING PARK CITY HALL 1. CALL TO ORDER 2. APPROVAL OF MINUTES a. Planning Commission Minutes from December 14, 2022 3. PUBLIC HEARINGS a. The Yacht Club Conditional Use Permits – Hotel, Restaurant, Outdoor Dining 4. ORDINANCES 5. MISCELLANEOUS 6. ADJOURNMENT CITY OF SPRING PARK PLANNING COMMISSION MINUTES DECEMBER 14, 2022 – 6:00 PM SPRING PARK CITY HALL 1. CALL TO ORDER The meeting was called to order at 6:00p.m. Planning Chair Hoffman and Commissioners Avalos, Mason, & Homan and were present. Commissioner Terryll was absent. Staff Present: City Administrator Anderson, City Planner Brixius, Council Member Chase, and City Attorney Murphy 2. APPROVAL OF MINUTES a. Planning Commission Minutes from November 9, 2022 Commissioner Homan motioned, being seconded by Commissioner Avalos, to approve the minutes as presented. On vote being taken, the motion was unanimously approved. 3. PUBLIC HEARINGS a. The Yacht Club Conditional Use Permit – Hotel b. The Yacht Club Conditional Use Permit – Restaurant c. The Yacht Club Conditional Use Permit – Outdoor Dining Chair Hoffman advised the audience that the applicant, Kelly Olson, The Yacht Club, and City Planner Brixius were going to conduct presentations on The Yacht Club project. Upon completion of those presentations, he would open the Public Hearing for comment. The applicant and her representatives recapped the status of the project and reviewed the changes made to address the areas identified as potential concerns - noise, traffic patterns, parking ADA access, etc. City Planner Brixius provided a summary of the project and his review of the applicant’s site plan noting the concerns from the last meeting. He reviewed in detail the changes the applicant has made to their plan to comply with the ordinance requirements and listed his recommendations to be added as requirements under the conditional use permits. At 6:55pm, Chair Hoffman stated he will soon be opening the public hearing for comments. He stated each conditional use permit will be addressed separately and each person, or their representative, had 3 minutes for comment. He advised that the comments were to only be those that were new and had not already been addressed at prior public hearings or correspondence. The Yacht Club Conditional Use Permit – Hotel At 6:57pm, Commissioner Mason motioned, being seconded by Commissioner Homan, to open the public hearing for discussion on the hotel conditional use permit. On vote being taken, the motion was unanimously approved. An attorney for a tenant, Tonka Capitals, brought forward their concerns regarding parking for the tenants during construction. The applicant stated they will be allowing tenants to stay through their lease but once the leases were over, they will convert those spaces to hotel rooms. If they need additional parking spots, they will take that into consideration. Several other tenants or their representatives shared their concerns and complaints about their office space not being allowed to remain at The Yacht Club. It was reiterated several times by Chair Hoffman and the City Attorney that landlord/tenant disputes are not under the City’s jurisdiction to resolve and need to be addressed between landlord and tenant. The applicant stated they have advised all tenants they can remain throughout the term of their lease and have offered lease buyouts if they want to terminate before then. The applicant stated no tenants have come forward to accept this offer. At 7:23pm, Commissioner Homan motioned, being seconded by Commissioner Mason, to close the public hearing for the conditional use permit for the hotel. On vote being taken, the motion was unanimously approved. The Yacht Club Conditional Use Permit – Restaurant At 7:24pm, Commissioner Homan motioned, being seconded by Commissioner Mason, to open the public hearing for discussion on the restaurant conditional use permit. On vote being taken, the motion was unanimously approved. The attorney for Tonka Capital Partners, a tenant in The Yacht Club building, brought forward that he believes that his tenant has the same property rights as ownership therefor he should be provided the same quiet enjoyment rights as Edgewater so the noise concern should be the same. The building owner shared they will have noise monitoring systems in each hotel room and there will be different entrances so that the tenants can access their space without going through the hotel lobby. Jay Knive, Tonka Capital, tenant at The Yacht Club, stated he has tried to discuss the lease terms and conditions with the building owner, and offered options to mitigate the disruption during construction but they have not responded. Mark Kozikowski, Edgewater Apartments stated if the project is done right, it will be a benefit to his tenants. He is concerned with the parking for special events such as a wedding, etc. Chair Hoffman reiterated that Special Events like a wedding requires a separate permit from the City. Mark also stated that he had a letter from Noise Aware that states they only do noise systems for short-term rentals and houses, not this type of project. The building owner clarified the parking and how they will address along with confirmation that the noise monitoring company can handle this type of project. The building owner’s restaurant partner stated that he understood the ha rdship of a building being sold and losing their lease, his restaurant will bring in 30,000 opportunities for business for them. At 7:47pm, Commissioner Mason motioned, being seconded by Commissioner Avalos, to close the public hearing for the conditional use permit for the restaurant. On vote being taken, the motion was unanimously approved. The Yacht Club Conditional Use Permit – Outdoor Dining At 7:47pm, Commissioner Mason motioned, being seconded by Commissioner Homan, to open the public hearing for discussion on the outdoor dining – as an accessory to the restaurant conditional use permit. On vote being taken, the motion was unanimously approved. Mark Kozikowski, Edgewater Apartments, brought forward his concerns with the parking. He also brought forward adding a smell scrubber for the restaurant exhaust, and concerns with kitchen staffing, and traffic patterns in and out of the building. Attorneys for the tenants, the tenants, & employees of tenants brought forward their concerns regarding noise & parking, from the outdoor dining and marina. The building owner’s restaurant partner confirmed the staffing count at the busiest time to be around 23, otherwise 10-12, described the style of the food, and that a scrubbers will be installed in the venting. The building owner’s attorney addressed the noise and parking and cited the code of ordinances for the City stating the thresholds have been met and would apply to any business. After no further public comment, at 8:12pm, Chair Hoffman asked for a motion to close the public hearing. Commissioner Homan motioned, being seconded by Commissioner Mason, to close the public hearing. On vote being taken, the motion was unanimously approved. At the close of the public hearing, Chair Hoffman explained to the audience that next steps were for the Planning Commission, City Planner, and Staff to discuss the public hearing feedback and incorporate those concerns into the conditional use permits. City Planner Brixius reviewed the conditions shown in his December 5, 2022, memo to the Planning Commission stating the requirements listed need to be included in the conditional use permits. Regarding the hotel and restaurant, he stated the applicant needs to submit a phasing plan to show how the existing indoor tenants will remain, a construction phasing plan to show the available parking so it never falls below the Ordinance parking requirements, and add scrubbers for the venting of the restaurant. Commissioner Avalos brought forward the concern of parking for the marina. Brixius stated the number was established when the C-4 district was created and it was arrived using other marina/yacht club comparisons. Brixius stated he used data from other cities that are like Spring Park, and they were all comparable. Parking was discussed by the Commission in depth. It was decided the phasing development plan needs to take into consideration all parking requirements per code. They will review to ensure the plan follows the ordinance and addresses the concerns from the public feedback. The Commission discussed the noise issue and determined that the system being used seems to be better than the first one that was submitted and the applicant needs to follow the Ordinance and conditional use conditions. After no further discussion, Chair Hoffman asked for motions to: • Approve the conditional use permit for hotel use to include the City Planner’s recommendations as listed in the December 5, 2022, planning memo and include: o Item #1 - Phased Parking Plan o Item #2 - Construction Staging Plan o Item #3 - Direct staff to draft and transmit these recommendations and information in accordance with city code Commissioner Mason motioned, being seconded by Commissioner Homan, to approve the conditional use permit for hotel use with the conditions listed. On roll call, the motion was unanimously approved. Mason – yes, Avalos – yes, Hoffman – yes, Homan – yes. • Approve the conditional use permit for restaurant use to include the City Planner’s recommendations as listed in the December 5, 2022, planning memo and include: o Item #1 - Phased Parking Plan o Item #2 - Construction Staging Plan o Item #3 - Scrubbers for Ventilation o Item #4 - Direct staff to draft and transmit these recommendations and information in accordance with city code. Commissioner Avalos motioned, being seconded by Commissioner Mason, to approve the conditional use permit for restaurant use with the conditions listed. On roll call, the motion was unanimously approved. Mason – yes, Avalos – yes, Hoffman – yes, Homan – yes. • Approve the conditional use permit for outdoor dining - accessory to a restaurant use to include the City Planner’s recommendations as listed in the December 5, 2022, planning mem o and include: o Item #1 - Direct staff to draft and transmit these recommendations and information in accordance with city code. Commissioner Homan motioned, being seconded by Commissioner Avalos, to approve the conditional use permit for outdoor dining – accessory to a restaurant use with the conditions listed. On roll call, the motion was unanimously approved. Mason – yes, Avalos – yes, Hoffman – yes, Homan – yes. 4. ORDINANCES a. THC Ordinance Review and Recommendation The Planning Commission reviewed the draft THC ordinance with red-lined changes noted from the prior meeting. City Administrator Anderson stated the Ordinance was also reviewed and approved by the City Attorney who advised he amended the definition of the THC product. Discussion was had. Chair Hoffman motioned, being seconded by Commissioner Mason, to recommend to City Council to approve Ordinance 2022-xx as amended by the City Attorney and to include the language “trace amounts”. On vote being taken, the motion was unanimously approved. 5. MISCELLANEOUS Chair Hoffman advised Commissioner Mason that the company who previously made the shirts and sweatshirts for the City has been located, they were contacted and confirmed they still have our logo. No pricing or details yet but will advise once we hear back from the vendor/company. 6. ADJOURNMENT After no further discussion, Chair Hoffman motioned, being seconded by Commissioner Mason, to adjourn the meeting at 9:34pm. On vote being taken, the motion was unanimously approved. 701 XENIA AVENUE S | SUITE 300 | MINNEAPOLIS, MN | 55416 | 763.541.4800 | WSBENG.COM Memorandum To: Mike Anderson From: Lori Johnson, Consulting Planner, WSB Date: January 11, 2023 Re: The Yacht Club Hotel Conditional Use Permits for a Hotel, Restaurant, and Outdoor Dining Accessory to a Restaurant. Olson Global, LLC On December 14, 2022, the Planning Commission held three public hearings regarding the requested conditional use permits for a hotel, restaurant and outdoor dining accessory to a restaurant that were submitted by Olson Global, LLC. The consulting planner at the time (Alan Brixius) provided a staff report regarding the applications which was followed by an extensive public hearing. Many comments were received from the public at the hearings, and the comments are summarized below. The Planning Commission recommended approval of the conditional use permits to the City Council on a 4-0 vote. The Planning Commission added these conditions to their motion of approval for each conditional use permit: 1. With regard to the hotel, the Commission asked that conditions outlined in the December 5th report from Planner Brixius be included in the motion, and that a phased parking and a phased construction plan be provided to the city before construction begins. 2. The same recommendations were made for the restaurant conditional use permit with the addition of requiring an air scrubber to combat external odors. 3. The same recommendations that were made for the hotel conditional use permit were made for the outdoor dining conditional use permit. 4. An added condition to all conditional use permits states that staff is directed to draft and transmit these recommendations and information in accordance with the City Code. After the public hearing was held it was determined that the City had not sent the proper notification to the Minnesota Department of Natural Resources (DNR) as required by Section 42-142(3) of the City’s zoning ordinance. This ordinance reads as follows: (3) Notifications to the department of natural resources. a. Copies of all notices of any public hearings to consider amendments, or conditional uses under local shoreland management controls must be sent to the commissioner or the commissioner's designated representative and postmarked at least ten days before the hearings. Notices of hearings to consider proposed subdivisions/plats must include copies of the subdivision/plat. The Yacht Club 01.11.23 Page 2 b. A copy of approved amendments and subdivisions/plats, and final decisions granting conditional uses under local shoreland management controls must be sent to the commissioner or the commissioner's designated representative and postmarked within ten days of final action. It was determined by the City Attorney that the notice should be sent to the DNR representative immediately, and the public hearing should be reopened to ensure that ordinance notification requirements are met for this project. The notice for the public hearing this evening was sent to Wes Saunders-Pearce, DNR Hydrologist on December 15, 2022, which is 27 days prior to tonight’s meeting. This fulfills the city’s requirement to notify the DNR. Mr. Saunders Pearce has confirmed that he has received the notification and all plans and specifications for the project. Additional notice regarding the meeting this evening was sent to adjacent property owners on December 30, 2022. Notice was placed in the local paper on December 24, 2022. These notices meet the requirements of the city ordinance and state law. As you know, the city is required by state law to act on land use applications within 60 days of the application being considered “complete” by the city. The city may extend this review period to 120 days. If the City Council fails to act on the item within this time frame the application is automatically approved. The city can request an extension from the applicant, though the applicant is not required to grant further extensions for review of the application. The applicant has given the city an extension that goes through January 31, 2023. Therefore, it is in the City Council’s best interest to act on this item by this date. The anticipated review schedule for the conditional use permits is as follows: Reopened Public Hearing: January 11, 2023 City Council Review of Applications: January 17, 2023 Planner Brixius’ original report is provided for you below in italics. There have been no changes to the application, or the plans presented with the application. The information in the report will be briefly presented at the Planning Commission meeting. Concerns that were heard at the December 14th meeting are summarized below: • Noise • Parking • Compatibility of use with existing tenants • All concerns noted in Planner Brixius’ original staff report In response to some of these concerns, the following information is presented: Parking The applicant has submitted a spreadsheet of all building square footage as it relates to uses through the year 2029. There will be three tenants remaining when the hotel opens, likely in the fall of 2023. The spreadsheet, which is attached to this report, explains what The Yacht Club 01.11.23 Page 3 will happen regarding parking as the leases end and the office spaces are converted to hotel rooms. The spreadsheet indicates that the highest number of stalls required on site according to ordinance requirements through 2029 is 100 stalls and 116 stalls will be provided on site. Additionally, the applicant provides the following analysis: “We will have 3 tenants remaining in the building when the hotel opens in the fall of 2023 for a total of 2725 sq ft of office space (13.6 parking stalls). By the spring we would have 24 hotel rooms (24 stalls), 4 hotel staff (4 stalls), and a 330 sq ft conference room (1.7 stalls). The restaurant would open in the Spring with approximately 700 sq ft kitchen (8.8 stalls) and 150 seat restaurant (50 Stalls). The marina would open in the spring with 21 seasonal slips (7 stalls). That’s a total of 100.3 stalls. We anticipate having 116 parking spaces total after making the changes Alan suggested.” The applicant’s comments regarding Planner Brixius’ suggestions alludes to the statement he made at the December 2022 Planning Commission meeting. Planner Brixius stated that the two parking spaces near the truck turn radius could be changed from two standards stalls to two compact stalls, and the turn radius would still be accommodated with this change. This site plan change would indicate that 116 stalls could be provided on site. It is recommended that this change be included in the motion of approval, if that is what the Planning Commission desires and it is currently reflected in the findings of fact presented this evening. A condition requiring the phasing plan to be submitted can be omitted from the findings of fact since that has already been provided by the applicant. Additional Information Hennepin County has provided comments on the plan as follows: “As this plan abuts Shoreline Dr (County Road 15), we wanted to review and provide some comments for the developer’s consideration. We’re generally supportive of the proposed plan but were considering whether the hotel would result in additional traffic onto Shoreline. Ideally, an EB right turn lane would be beneficial here, but with space constraints we recognize that may not be feasible. Instead, we were wondering, would the developer consider modifying the striping on Shoreline to widen/extend the shoulder? This would create more space for people driving EB on Shoreline and making right turning movements into the site.” The Yacht Club 01.11.23 Page 4 Staff is recommending that the County’s comments regarding striping be included in any motion if the Planning Commission and City Council choose to approve the project. Minnesota DNR Hydrologist Wes Saunders-Pearce has provided the following comments on the proposed site plan and specifically the proposed plunge pool: “The staff report dated December 5, 2022 notes a gated “plunge pool” (swimming pool) available for year-round use is proposed. The staff report’s “Other Issues” section (p 18) notes the proposed plunge pool, located south of the building, will encroach within the 50-foot OHWL setback requirement. A 10-foot setback from the OHWL is proposed. The staff report notes the city’s shoreland ordinance allows water-oriented structures within the 50-foot shoreland setback area. Examples of water-oriented accessory structures and facilities include watercraft and watercraft equipment storage structures, gazebos, screen houses, fish houses, pump houses, and detached decks. A pool is not considered a water-oriented accessory structure. The proposed pool constitutes a structure in the Shore Impact Zone and does not meet the city’s setback requirements within city code section 42-64(d). A variance will need to be granted (per city code section 42-165) in order to allow the pool within the 50-foot OHWL setback requirement. Conditions may be imposed on the granting of a variance, provided the conditions are directly related to the impact created by the variance and bear a rough proportionality to the impact created by the variance. The Yacht Club 01.11.23 Page 5 Condition 10 within the staff report (“The landscape plan be revised to install turf and shrubs in the area east of the pool instead of sand to provide plantings in the shoreland impact zone, storm water absorption and to prevent erosion.”) is a useful example.” The city had determined that the pool was considered a water-oriented accessory structure and was not subject to the required 50-foot setback from the OWHL. The city’s perspective was outlined in the previous staff report. Given the new information from the DNR, staff is recommending that the plunge pool be removed from consideration at this time until the applicant has had an opportunity to reevaluate the pool’s location. If the applicant is able to accommodate the pool elsewhere on site, a conditional use permit amendment will be required, and the applicant will need to submit such future application. If the applicant does not believe they can accommodate the pool elsewhere on site, a variance application will be required. The applicant will then be tasked with proving there is a practical difficulty involved with moving the pool to a new location. The Planning Commission and City Council would review any new applications at future meetings, and the public will be notified through notification procedures established in the ordinance and by state law. The applicant has provided an email that indicates the desire to remove the pool from the application that is before the Planning Commission at this meeting. A condition has been added to the findings to reflect this issue. Motions and Findings: Based on the discussion at the meeting, the Planning Commission will be required to make a new, amended motion on the conditional use permit applications due to the new information received. Any new motion for approval will be required to include the Findings of Fact and Recommendation attached to this report. Please note the Findings of Fact are slightly different than what was recommended in Planner Brixius’ report due to the fact that new information has come to light since December 14, 2022. Additional Attachments: All attachments associated with Planner Brixius’ original report are included in the Planning Commission packet. Additional attachments include the parking spreadsheet from the applicant and the Findings of Fact and Recommendation. ______________________________________________________________________ BACKGROUND In the spring of 2022, Olson Global, LLC approached the City with a concept plan to convert the Minnetonka Yacht Club office building at 4165 Shoreline Drive into a hotel, restaurant with outdoor dining, and shared office space. Through the spring and early summer, the Planning Commission and City Council held a number of public hearings to The Yacht Club 01.11.23 Page 6 solicit public comment and to consider the proposed change in land use for this site. The Planning Commission and City Council indicated that they were open to the possibility of changing the Zoning Code to accommodate the proposed land uses at this site. The City Council directed Olson Global to submit development applications for a zoning amendment to the C-4 Commercial Office district, to allow the proposed uses within this district by conditional use permit and provide more information pertaining to site plan and building changes proposed for the site. In July and August 2022, the Planning Commission and City Council conducted public hearings on a proposed zoning amendment allowing for hotels, restaurants and outdoor dining as conditional uses in the C-4 district. After conducting public hearings and reviewing the proposed Zoning Code language, the Planning Commission recommended approval of the zoning text amendment. On August 1, 2022, the City Council reviewed the proposed zoning text amendment, public comments, and recommendation of the Planning Commission and approved zoning amendment #22-04 allowing hotels, restaurants and accessory outdoor dining as conditional uses within the C-4 zoning district. With this zoning approval, Olson Global, LLC. extended the City’s 60-day review period for the conditional use permits to allow for the submission of revised complete site and building plans and project narrative for requested conditional use permits. Olson Global, LLC has submitted plans calling for the conversion of the existing Lake Minnetonka Yacht Club, located at 4165 Shoreline Drive, into a lakefront boutique hotel and restaurant. Plans received were reviewed and deemed complete on November 15, 2022. The proposed hotel project includes the following components: • 30 hotel suites with south-facing views. • A restaurant with accessory outdoor dining (the existing deck will be utilized). A maximum of 150 seats will be provided (75 indoor and 75 outdoor). • A total of 32 seasonal boat slips, 11 of which are for transient users and the balance are reserved for Yacht Club members. • A gated “plunge pool” (swimming pool) which will be available for year-round use. To be noted is that the plans have been revised in an attempt to respond to issues and concerns raised through the review of the previous concept plan. The issues and plan changes have been outlined in the body of this report. The 1.47-acre subject site is presently zoned C-4, Office Commercial. The following formal approvals are necessary to accommodate the development proposal: 1. Conditional use permit for hotel use 2. Conditional use permit for restaurant use 3. Conditional use permit for outdoor dining accessory to a restaurant Attached for reference: The Yacht Club 01.11.23 Page 7 Exhibit A: Applicant Narrative Exhibit B: Existing Site Photographs Exhibit C: Existing Conditions Survey Exhibit D: Site Plan Exhibit E: Parking Lot Plan Exhibit F: Utility, Grading, Drainage & Erosion Control Plan Exhibit G: Landscape Plan Exhibit H: Lighting Plan Exhibit I: Exterior Renderings Exhibit J: Building Elevations Exhibit K: Floor Plans Exhibit L: Noise Study Exhibit M: Sound Plan Exhibit N: Truck Maneuvering Diagrams ANALYSIS Issues. Through the public hearings held during the concept plan review, the following issues were identified related to compatibility with the adjoining residential uses to the west: 1. NOISE. Edgewater Apartments owner and residents do not believe that the uses can control nuisance noise from the hotel, restaurant, and outdoor activities proposed for the site. A noise mitigation plan has now been provided. The noise mitigation plan provides a noise study and details the methods, equipment, and process for controlling noise at the shared property line. 2. OUTDOOR LIGHTING. The applicant has submitted an outdoor lighting plan showing the location and type of light fixtures including all freestanding and wall mounted exterior lights. The plan includes a photometric plan showing light levels across the site and at the property line. 3. STAFFING. Concern was expressed for the site staffing, related to site security, on-site management of guests, and staffing to manage the outdoor activities (docks, hotel activities, noise management, etc.). This relates to the supervision and management of the on-site operations and guest behavior and the impact on required parking. The applicant’s narrative outlines the proposed staffing for all the uses associated with the hotel, restaurant, and docks. 4. PARKING. The proposed amendment outlines parking requirements for each of the proposed uses. Concerns were expressed that the parking requirements are not sufficient to address all the parking needs of the site. Issues include the necessary employee count for the site, whether the sun deck will offer drinks and food, (if so, it should be counted as outdoor dining for the parking count); dock use and special activities must also be considered. The public comments expressed concern that if the site is under parked, there is no place for overflow parking. The applicant has made changes in the variety of uses within the The Yacht Club 01.11.23 Page 8 building and has provided a revised parking plan which addresses needed parking. 5. SUN DECK. The July planning report outlines a number of issues with the concept plan which included a 2,500 square foot freestanding sun deck. Issues included its location, the removal of trees, slope protection, increase in hard cover, and proximity of this outdoor activity to Edgewater Apartments. The revised site plan eliminates the freestanding sun deck. The revised plan set indicates that a portion of the existing deck will serve as the sun deck for exclusive use by the hotel guests and yacht club members. 6. DOCKS. Concern was raised over the number and use of the docks. The applicant stated the number of docks will remain at 32. However, some of the docks will be seasonal leases to yacht club members and some would become transient docks for hotel quests and restaurant guests. Dock-related concerns include the following: a. Where will hotel guests who bring their boats to the site park their trailers. b. Parking for the yacht club members who come to the site exclusively to access their boats. c. Will there be a dock attendant? Does the parking supply count include this employee? d. Will there be other off-site lake services (fishing charters, tour boats) coming to the site which could generate visitors parking on site who are not hotel or restaurant guests? The applicant’s narrative provides a response to each of the aforementioned issues. 7. SPECIAL EVENTS. It was noted that special events may be exempt for the noise standards. This raised questions as to the type and frequency of the special events allowed on the site, location of outdoor events, noise levels, hours of operation, etc. Zoning. The subject site is zoned C-4, Commercial Office, which was recently amended to make an allowance for hotels, restaurants, and outdoor dining accessory to a restaurant as conditional uses. As a result, the processing of three separate conditional use permits (for the three referenced conditional uses) is necessary. Such uses will be subject to the various conditions (performance standards) included in the amendment. Hotel Use. The applicable C-4 zoning district now makes an allowance for “hotels” subject to conditional use permit processing and various conditions. The following is a The Yacht Club 01.11.23 Page 9 listing of the various conditions which must be satisfied followed by related Staff comments: a. Vehicular access points shall be limited, shall create a minimum of conflict with through traffic movements, shall comply with section 42-67 of this Code, and shall be subject to the approval of the City Engineer and/or Hennepin County, as applicable. Staff Comment: The subject site is presently accessed via a single, 28-foot-wide curb cut along Shoreline Drive. No site access-related changes are proposed as part of this development application. Thus, the proposed hotel would utilize the existing site access. Access-related issues will be subject to comment and recommendation by the City Engineer and/or Hennepin County. b. Parking. The site shall provide adequate parking as listed in this subsection. 42-428 (5) (b) and per section 42-67 of this Code. Hotel parking shall not interfere with on-site circulation or other uses sharing the site. The site and related parking and service shall be served by an arterial or collector street of sufficient capacity to accommodate the traffic which will be generated. Parking requirements are as follows: 1. One space per hotel room and one space per hotel employee. 2. Parking for ancillary uses such as office space, conference rooms shall be calculated per section 42-67 of this Code. 3. At least one parking stall shall be provided for every three boat slips accessory to the hotel. 4. All on-site parking shall meet the design standards of section 42-67 of this Code. 5. The site plan shall illustrate the required disability parking. Staff Comment: The applicant’s 2021 “Alta Survey” illustrates 111 off-street parking spaces, one of which is reserved for disability parking. This survey shows the configuration of the overall parking lot, stall and aisle dimensions and circulation patterns. In review of the existing parking lot design, a number of drive aisles have widths which are less than current required standards. Additionally, the parking lot has been restriped since the survey was prepared in 2021, lowering the existing parking count to 103 stalls. During the concept plan review, concerns were raised as to whether the site has adequate parking for the combination of uses that were proposed for the site. In The Yacht Club 01.11.23 Page 10 response to his concern, the applicant has revised their project with the following changes: 1. The co-working business suites have been eliminated. The new plan consists of the hotel, restaurant, and yacht club. The previous concept plan offered 3966 square feet of office space which, by Code, requires 18 parking stalls. The previous office floor area is now proposed to be used as four hotel rooms requiring four parking stalls. 2. The new site plan eliminates the freestanding sun deck included in the original concept plan. The new sun deck for the hotel comprises the eastern portion of the existing deck, south of the building. The sun deck is smaller than that proposed on the original concept plan and will available only to hotel guests and yacht club members, through the use of electronic gate security. During the concept review, concern was expressed that the freestanding sun deck would expand the outdoor dining and drinking area to the general public, thereby increasing the on- site parking demand. 3. The applicant has provided site staffing numbers which have been included in the parking calculations below. Based on the proposed uses, a total of 102 off-street parking spaces are required by Code. 4. The site plan calls for the removal of three existing trees to expand the parking count and improve site circulation. The trees to be removed include a silver maple tree located in the extreme northwest corner of the site and two crab apple trees within raised medians within the parking lot. The applicant’s arborist has identified the silver maple as being diseased and recommends the removal of said silver maple and the crab apple trees. 5. The applicant’s narrative cites, parking codes of the Cities of Excelsior and Wayzata, which allow some reduction in required parking for mixed uses. These codes assume some overlap in parking demand. 6. The parking standard for hotel requires one space per room. According to Hoteltechreport.com (10/28/2022), the average occupancy rate for hotels ranges from 65 to 80 percent. 7. The City’s restaurant parking supply standards 1 stall per three seats is in line with other lake communities (Mound, Wayzata and Excelsior). 8. There is currently on-street parking exists along Shoreline Drive (11 Stalls) and Spring Street (18 stalls). While these stalls are generally occupied by daytime businesses in the area, they may be available to the restaurant customers during the evening and weekends. Use Ratio Required Spaces The Yacht Club 01.11.23 Page 11 Hotel (30 rooms and 4 employees) 1 space per room and 1 space per employee 34 Restaurant (150 seats) 1 space per 3 seats 50 Kitchen (665 s.f.) 1 space per 80 s.f. 9 Conference Room (330 s.f.) 1 space per 200 s.f. 2 Marina (21 boat slips) 1 space per 3 slips 7 Total 102 The new site plan illustrates 119 off-street parking stalls, five stalls of which are reserved and designated as disability parking. Of the 119 illustrated parking stalls, 14 (12 percent) are designated as “compact stalls.” According to the Ordinance, up to 20 percent of the total required parking may be designated for compact cars, with stalls not less than seven feet wide and 15 feet in length. The proposed number compact parking stalls is within the maximum percentage allowance of the Zoning Code and also complies with the applicable minimum dimensional requirements. To be noted is that several areas of the existing parking lot (parking stalls and drive aisle widths) do not meet the minimum dimensional requirements of the Spring Park Code. For example, the 60-degree parking stalls which abut the north property line measure only 7.5 feet in width and the adjacent one-way drive aisle measures only 16.5 feet in width. According to the Ordinance, such stalls should measure not less than 8’- 9” in width and the adjacent one-way drive aisle should measure not less than 18’ - 6” in width. Recognizing that the existing parking lot was legally established (with grandfather rights) and has functioned relatively well over the years, it is not considered appropriate to require a complete redesign of the parking lot to current standards. It is, however, appropriate to require some modifications to parking lot design which improve function within the entire lot and accommodate service vehicles. The following recommendations are made to improve existing conditions: 1. The parking stalls along the north lot line shall be widened from 7.5 feet to 9 feet in width. At 9 feet in width, the stalls will exceed the City Code standard of 8 feet 9 inches for 60-degree parking stalls, however, the wider stalls will provide more maneuvering area within each stall to compensate for the narrower 16.5-foot aisle width. This change will result in the loss of two parking stalls. 2. The parking stalls located along the west lot line are properly dimension for compact cars per City Code, however, the drive aisle between the parking stalls and the curb island with the oak tree is only 13 feet wide. To improve on this existing condition, Staff recommends the elimination of one parking stall and widening the remaining stalls across from the oak tree to 9 feet wide to provide more maneuvering area within the stalls and to compensate for the narrower 13-foot aisle width. The Yacht Club 01.11.23 Page 12 A second alternative is available if the Oak tree is deemed a hazard and removed the raised island containing the tree can be removed and the drive aisle can be saving the available parking stalls. 3. To improve on the truck access and egress within the site, Staff recommends the elimination of two parking stalls illustrated on the truck movement diagram illustrated latter in this report. These recommendations are offered to improve access to the parking stalls and circulation throughout the parking lot. These recommendations will reduce the parking count by five parking stalls resulting in a final parking count of 114 parking stalls which is still above minimum City Code requirements. Owners of adjoining properties have expressed concern regarding restaurant customers parking on their properties when the Yacht Club site parking lot is at full capacity. In light of this concern, the City may wish to impose a condition that, if Yacht Club patrons’ trespass and park on private property, the City may require the Yacht Club to pursue an off-site parking conditional use permit identifying a site and property owners’ permission for the Yacht Club to utilize the off-site parking location. To be noted is that boat trailer parking will not be allowed upon the subject site. According to the applicant’s narrative, hotel guests wishing to bring their boats to the lake will have their boat trailers stored at an off-site location. The applicant narrative has identified Bump’s Auto and Marine as the business providing the storage area. The correspondence from Joel Mernik, the business owner, identifies the storage site as being located at 5151 Highway 7 in the City of Lester Prairie. This site is 32 miles away from the Yacht Club site. The applicant must provide additional information as how the trailers will be transported to and from the storage site and whether the City of Lester Prairie will allow trailer storage on the proposed site. As a condition of conditional use permit approval, it is recommended that boat trailer parking on the subject site be prohibited. c. The hotel site plan shall illustrate all outdoor activity areas and amenities accessory to the hotel. Outdoor activity areas shall be designed to screen these areas from adjoining residential properties. Outdoor activity areas may be located within the required shoreland setback provided: 1. The site meets the lot coverage requirements of subsection 42-429 (5) of this Code. Staff Comment: Section 42-429 (5) of the Zoning Ordinance states that impervious surface coverage may not exceed 75 percent of the total lot area provided all structures, additions or expansions shall meet setback and other requirements of the Ordinance and that all development plans The Yacht Club 01.11.23 Page 13 are reviewed and approved by the City Eng ineer and the Lake Minnetonka Conservation District. The submitted plans indicate that the existing site has an impervious surface coverage of 66 percent, and that coverage is proposed to be increased to 68 percent. Thus, the proposed amount of impervious surface coverage is within the maximum limit specified by the Ordinance. 2. Outdoor activity areas are designed and located to screen these areas from adjoining residential uses. Staff Comment: Outdoor activity areas on the site include the outdoor dining area, the plunge pool, a deck area located adjacent to lower-level guest rooms and a fire pit area with seating. All activity areas are located south of the principal building. Recognizing that residential uses border the subject site to the west, proper screening along the subject site’s west property line is of the utmost importance. The west side of the site is presently screened via mature oak trees, a row of pine trees, and fencing. All existing vegetation located in the southwest corner of the site, west of the proposed outdoor dining area, is to remain. Three trees in the parking lot area are proposed to be removed to expand the available parking, however, these trees do not provide significant screening. The large oak tree located in the southwest area of the parking lot is identified on the site plan to remain and be protected during construction. This tree provides significant visual screening of the outdoor activity area and the parking lot. The applicant’s arborists identify this oak tree as “decaying and splitting which is a major liability to life and property. The tree should be removed due to the severity of the crack, hollowed trunk, and significant weight of the tree. Two certified arborists at Bratt Tree Company strongly recommend removing tree as it is major liability to pedestrians and vehicles at this location.” The Planning Commission and Council will determine the fate of this tree. If the tree is removed, it is recommended that additional vertical plantings (trees or shrubs) be provided along the edge of the parking lot at the southwest corner of the building to screen the lights and activities within the outdoor dining area. To further minimize potential impacts, the applicant has proposed the construction of a 12-foot high, split face block sound wall on the west side of the outdoor dining area. This wall will screen outdoor dining activities from adjacent residential uses. The Yacht Club 01.11.23 Page 14 3. The hotel shall demonstrate accessible points of access to all accessory outdoor activity areas including docks accessory to the hotel. Staff Comment: The submitted site plan illustrates circulation routes to proposed outdoor activity areas. As a condition of building permit issuance, all applicable American Disability Act (ADA) requirements will need to be satisfied. 4. Docks accessory to the hotel shall be permitted by the Lake Minnetonka Conservation District. Staff Comment: According to the submitted site plan, some existing docks are to be relocated. As a condition of conditional use permit approval, all docks associated with the proposed hotel use must be subject to review and approval by the Lake Minnetonka Conservation District. 5. All trash, recycling handling equipment shall be stored within the principal building or within a trash enclosure that screens the equipment from public streets and adjoining properties. Staff Comment: According to the submitted site plan, a gated, exterior trash handling area presently exists at the at the northwest corner of the building. No changes to the existing trash handling area are proposed. In this regard, grease from restaurant use will be stored within the trash handling area. The applicant’s narrative indicates that the trash dumpster will be locked during quiet hours (10 pm to 7 am) such that it will not be accessible to staff or hotel patrons during such time. Consistent with City Code requirements, the applicant has also indicated that trash pick-up (as well as deliveries) will be restricted to the hours of 7 am to 10 pm on weekdays and between the hours of 8 am to 8 pm on weekends and holidays. 6. Loading Area. The hotel site shall provide an on-site loading area designed to accommodate delivery vehicles. Staff Comment: Delivery activities are expected to occur near the northwest corner of the building. The submitted truck turning diagram illustrates an ability for large delivery vehicles (50 foot long) to maneuver within the site (for deliveries). The Yacht Club 01.11.23 Page 15 Appropriately, truck turning diagrams have been submitted which demonstrate that ample area will exist within the subject site for truck maneuvering (see Exhibit M). The following Staff recommendations are offered to improve truck access and egress to the building. 1. The turning radius of the row end parking lot striping located near the northwest corner of the building be reduced to provide additional area for truck turning movements. 2. Two parking stalls be eliminated to provide greater truck maneuvering area for truck leaving the site. As indicated in the project narrative, deliveries will be restricted to the hours of 7 am to 10 pm on weekdays and between the hours of 8 am to 8 pm on weekends and holidays. Restaurant Use. The applicable C-4 zoning district now makes an allowance for “restaurants” subject to conditional use permit processing and various conditions. The following is a listing of the various conditions which must be satisfied as well as related Staff comments: a. Vehicular access points shall be limited, shall create a minimum of conflict with through traffic movements, shall comply with Section 42-67 of this Code and shall be subject to the approval of the City Engineer and/or Hennepin County, as applicable. The Yacht Club 01.11.23 Page 16 Staff Comment: See previous comments related to site (hotel) access. b. Parking. The proposed building shall provide adequate parking as listed in this subsection 42-428 (6) (b) and per section 42-67 of this Code. Restaurant parking shall not interfere with on-site circulation or other uses sharing the site. The site and related parking and service shall be served by an arterial or collector street of sufficient capacity to accommodate the traffic which will be generated. Parking requirements are as follows: 1. One stall per 3 restaurant seats. 2. One stall per 80 square foot kitchen space. Staff Comment: See previous comments regarding parking for all proposed uses. c. Loading Area. Restaurant site shall provide an on-site loading area designed to accommodate truck and trailer delivery vehicles with a length of 50 feet or more. Alternatively receive written confirmation from suppliers that only smaller vehicles or delivery vans will be used. Restaurant site plans shall demonstrate site access, egress and maneuvering through site without interfering with on-site parking. The restaurant site shall provide adequate space for off-street loading and unloading of all trucks serving the site per Section 42-68 of this Code. Staff Comment: Truck turning diagrams have been submitted which demonstrate truck movements within the subject site for truck with a length of 50 to maneuver within the site (see Exhibit M). See comments on truck access and egress note under the hotel review. d. All trash, recycling, grease trap handling equipment shall be stored within the principal building or within a trash enclosure that screens the equipment from public streets and adjoining properties. Staff Comment: The hotel and restaurant will share the existing exterior trash handling area located at the northwest corner of the building. See previous comments regarding trash enclosure for hotel use. e. Noise. The applicant shall abide by the maximum noise level guidelines as stated in residential land use limits in Chapter 18, Article III, Section 18-122 of this Code. No excessive noise will be permitted. The following provisions are required to monitor and to control noise levels: 1. Outdoor weatherproof noise monitoring equipment shall be installed, and a record of noise levels maintained. The Yacht Club 01.11.23 Page 17 i) Reports of noise levels shall be submitted to the City monthly. ii) The applicant shall provide a detailed noise monitoring and mitigation plan. iii) Noise levels a duration of 6 minutes or more in excess of what is allowed will alert the on-site management to take immediate actions to reduce the noise levels at the site. 2. These restrictions shall not apply if granted a special event permit approved by the City with an explicit, written exemption from noise standards. 3. In the event of the applicant receiving four (4) documented complaints, the City Council reserves the right to limit hours of outdoor operations. This subsection 42-428 (6) (e) (3) does not limit the City’s ability to revoke a conditional use permit. Staff Comment: The applicant has submitted a noise study which outlines measures to control noise emanating from the restaurant patio (see Exhibit K). The study concludes that, without mitigation, daytime patio noise meets the required 65 dBA requirement at the nearest residential receivers. The City and State of Minnesota both define “daytime” as being from 7 AM to 10 PM. In this regard, the study states that no noise mitigation is needed for the outdoor patio to meet the daytime requirements. The study indicates that the patio’s low elevation south of the building along with berm /foliage along the site’s western boundary contribute to such noise level compliance. Despite the noise study findings, the applicant is proposing the following noise mitigation and monitoring efforts: • Noise monitoring equipment shall be installed near the top of the stairs above the patio that will record data and alert property managers if it exceeds regulated levels for six or more consecutive minutes. The applicants plan to use NoiseAware monitoring system for this purpose. • An 8’ x 4’ fireplace area with a 12-foot-high adjoining wall on the southwest corner of the patio to absorb and redirect sound. • The use of directional speaker layout and sound plan (Exhibit M). • The project narrative states that the outdoor dining area will be closed by 10 PM. • The project narrative indicates that access to the trash enclosure will be restricted to daytime hours to avoid late night noise issues. The Yacht Club 01.11.23 Page 18 In regard to noise mitigation efforts, Planning Staff recommends the following as conditions of conditional use permit approval: 1. The noise control elements cited in the project narrative shall be conditions of the conditional use permit and may be enforced by the City. 2. The City impose a maximum decibel level requirement for documentation purposes. In this regard, it is recommended that noise produced upon the subject site not exceed 65 dBA during daytime hours (7 am to 10 pm) and 55 dBA during evening hours (10 pm to 7 am) as measured from all property lines. 3. Collected noise monitoring data shall be shared monthly with the City to establish a record of noise levels and to track noise complaints and violations. 4. Noise levels at a duration of six minutes or more in excess of what is allowed shall alert the on-site management to take immediate actions to reduce the noise levels at the site. 5. In the event of the applicant receiving four documented noise-related complaints, the City Council reserves the right to limit hours of outdoor operations. Odors. During the concept plan review, concerns were expressed with regard to odors emanating from the restaurant’s commercial kitchen. In response to this issue the project narrative indicates that kitchen venting will be through a chase along the west side of the main staircase and vented through the building roof more than 150 feet from the nearest lot line. Accessory Outdoor Dining Use. The applicable C-4 zoning district now makes an allowance for “outdoor dining accessory to a restaurant” subject to conditional use permit processing and various conditions. The following is a listing of the various conditions which must be satisfied as well as related Staff comments: a. A site plan and other pertinent information shall be submitted demonstrating the location and type of all tables, refuse receptacles, and wait stations. Staff Comment: The submitted lower-level floor plan appropriately illustrates the restaurant’s interior and exterior table locations. b. The outdoor dining area shall be fenced according to the requirements of Section 42-64 (i) of this Code, to define its boundaries and access to the outdoor dining area be provided only via the principal building. Staff Comment: According to the applicant, an existing ornamental fence (railing), within which the outdoor dining area is to be located, is to remain in The Yacht Club 01.11.23 Page 19 place and be repainted. The site photographs include an image the existing fence (see below). While the existing fencing is considered acceptable, it is recommended that the site plan be modified to specify the location, type, and design of outdoor dining area gates and latches for access and egress to the dining area. c. The size of the outdoor area is restricted to no more than thirty (30) percent of the total floor area within the principal structure. Staff Comment: The proposed outdoor dining area measures approximately 1,800 square feet in size which is considerably less than 30 percent of the three- story principal building. The size of the outdoor dining shall be limited to the approved site plan. d. The outdoor dining area shall be screened from view from adjacent residential uses in accordance with subsection 42-64(j) of this Code. Staff Comment: See previous comments related to screening. e. All exterior lighting shall be totally screened or consist of ninety-degree (90°) cutoff light fixtures with a shielded light source directed so that the light source shall not be visible from the public right-of-way away or adjacent residential properties and shall be in compliance with subsection 42-63(h) of this Code. The Yacht Club 01.11.23 Page 20 Staff Comment: As required, the applicant has submitted a photometric lighting plan and photographic examples of the proposed light fixtures. According to the plan, existing light poles are to remain in place, but the luminaries within such fixtures will be replaced. According to the Ordinance, any lighting used to illuminate an off -street parking area, structure, or area must be arranged to deflect light away from any adjoining property or from any public right -of-way. Further, the Ordinance states that no light source or combination thereof which casts light on a public street shall exceed one footcandle meter reading as measured from the centerline of said street nor shall any light source or combination thereof which casts light on adjacent property exceed four-tenths footcandles as measured at the property line. The submitted photometric lighting plan demonstrates compliance with the City’s exterior lighting requirements. f. Noise. The applicant shall abide by the maximum noise level guidelines as stated in residential land use limits in Chapter 18, Article III, Section 18-122 of the Spring Park City Code. No excessive noise will be permitted. The following provisions are required to monitor and to control noise levels: 1. Outdoor weatherproof noise monitoring equipment shall be installed, and a record of noise levels maintained. i) Reports of noise levels shall be submitted to the City monthly. ii) The applicant shall provide a detailed noise monitoring and mitigation plan. iii) Noise levels for a duration of 6 minutes or more in excess of what is allowed will alert the on-site management to take immediate actions to reduce the noise levels at the site. 2. These restrictions shall not apply if granted a special event permit approved by the City with exemption from noise standards. 3. In the event of the applicant receiving four (4) documented complaints, City Council reserves the right to limit hours of outdoor operations. This subsection 42-428 (7) (f) (3) does not limit the City’s ability to revoke a conditional use permit. 4. Outdoor electronically amplified audio speaker shall be designed and located to direct sound toward the principal building on the site and away from adjoining properties. Property owner shall control volumes to prevent noise levels at the property lines that exceed the The Yacht Club 01.11.23 Page 21 City standard outlined in Chapter 18, Article III, Section 18-122 of the Code. Staff Comment: See previous noise-related comments. Additionally, if live outdoor music performances are planned, such performances shall only be permitted after obtaining a special event permit and shall meet the requirements of Spring Park City Code. To further mitigate potential noise impacts, the applicant has expressed an intent to cease outdoor dining activities at 10 pm. It is recommended that this be imposed as a condition of conditional use permit approval. g. The site plan shall demonstrate that pedestrian circulation is not disrupted as a result of the outdoor dining area by providing the following: 1. Outdoor area shall be segregated from through pedestrian circulation by means of fencing. 2. Minimum clear passage zone for pedestrians at the perimeter of the facility shall be at least five feet without interference from parked motor vehicles, bollards, trees, tree gates, curbs, stairways, trash receptacles, streetlights, parking meters, or the like. 3. Overstory canopy of trees, umbrellas or other structures extending into the pedestrian clear passage zone or pedestrian aisle shall have a minimum clearance of seven feet above sidewalk. Staff Comment: The lower-level floor plan appropriately illustrates table and pedestrian aisle locations within the proposed outdoor dining area. Clear passage zones of five feet are illustrated. h. The outdoor area is surfaced with concrete, bituminous or decorative pavers or may consist of a deck with wood or other flooring material that provides a clean, attractive, and functional surface. Staff Comment: The existing deck has a wood floor. i. A minimum width of 36 inches shall be provided within aisles of the outdoor area. Staff Comment: As previously indicated, the lower-level floor plan illustrates five- foot-wide aisles within the outdoor dining area. j. Refuse containers are provided for outdoor dining areas. Such containers shall be placed in a manner which does not disrupt pedestrian circulation and must be designed to prevent spillage and blowing litter. The Yacht Club 01.11.23 Page 22 Staff Comment: The preceding requirement will be made a condition of conditional use permit approval. k. Property owners shall pick up litter within one hundred feet (100') of the patio area. Staff Comment: The preceding requirement will be made a condition of conditional use permit approval. l. Live outdoor music performances shall only be permitted after obtaining a special event permit and shall meet the requirements of Spring Park City Code. Staff Comment: The preceding requirement will be made a condition of conditional use permit approval. Other Issues Setbacks. Required structure setbacks in the C-4, Commercial Office are as follows: • No less 30 feet when abutting a County street • Except as provided below, not less than 10 feet on any side yard • No less than 20 feet on any side yard abutting residentially zoned p roperty • No less than 50 feet from the ordinary high-water level (OHWL) To be noted, the Ordinance does allow water -oriented structures within the 50-foot shoreland setback area. No physical expansions to the existing principal building are proposed. The proposed “plunge pool,” located south of the building, will encroach within the 50-foot OHWL setback requirement. A 10 -foot setback from the OHWL is proposed Restaurant Staffing. As part of previous plan review, questions arose related to restaurant staffing. As a follow-up, the applicant contacted two area restauranteurs related to recommended staffing levels. Specifically, Aaron Switz who operates the Yumi restaurant in Excelsior and the new Macanda restaurant in Wayzata, and Deacon Eells, who operates the Coalition and Red Sauce Rebellion in Excelsior, were contacted. Both restaurant operators believe that 15 people (front and back of house) is adequate to operate a 150-seat restaurant at full capacity. The Yacht Club 01.11.23 Page 23 Restaurant Access. The west building elevation illustrates a doorway access to the lower-level restaurant. Such doorway is not, however, illustrated on the lower - level floor plan. As a condition of conditional use permit approval, either the west building elevation or lower -level floor plan should be adjusted to reflect the intended inclusion or exclusion of west -facing restaurant doorway. Fire Pit Area. The submitted site plan illustrates a fire pit area located west of the “plunge pool.” Construction of the fire pit will requir e the removal of some vegetation. The fire pit area is intended for the exclusive use of hotel guests and the Yacht Club members and will be segregated from the outdoor dining area via a fence and security gate. Rooftop Mechanical Equipment. The submitted plans indicate that rooftop mechanical equipment will be located in an area which potentially may be visible from the north side of the building. As a condition of conditional use permit approval, rooftop mechanical equipment must be screened from view of adjacent properties and public rights-of-way (Shoreline Drive). Tree Preservation and Landscaping. The submitted landscape plan indicates that five existing trees are to be protected during construction activities and remain on the site. The applicant has also indicated that seven trees will be removed (to accommodate construction activities). In review of the submitted landscape plan, the following comments and recommendations are offered: 1. The removal of the silver maple and the crab apple trees in and along the parking lot is acceptable to accommodate additional parking and improved traffic circulation within the parking lot. These trees in their current condition provide limited site screening. 2. The removal of the locust trees along the s outh side of the deck is needed for the construction of the plunge pool. The landscape plan also calls for the removal of the shrubs along the south side of the deck and replaces them with sand. Staff recommends that the area east of the pool be revegetated with turf and shrubs instead of sand to provide plantings in the shoreland impact zone, storm water absorption and to prevent erosion. 3. The large oak tree in the southwest area of the parking lot is identified on the site plan to remain and be protected during construction. This tree provides significant visual screening of the outdoor activity areas and the parking lot. As previously indicated, the applicant’s arborists identify this oak tree as “decaying and splitting, which is a major liability to life and property. The tree should be removed due to the severity of the crack, hollowed trunk, and significant weight of the tree. Two certified arborists at Bratt Tree Company strongly recommend removing tree as it is major liability to pedestrians and vehicles at this location.” The Planning Commission and Council will determine the fate of this tree. If the tree is removed, we recommend requiring some additional vertical planting (trees or shrubs) along the edge of The Yacht Club 01.11.23 Page 24 the parking lot at the southwest corner of the building to visually screen the lights and activities within the outdoor dining area. The landscape plan includes the following new plantings; three evergreen trees, one ornamental tree, and 11 perennials (Hosta) are to be planted on the site. The three evergreen trees are to be planted on the east side of the sun deck and will provide year-round screening from the adjacent property to the east. The ornamental tree is to be located on the east side of the hotel building. The perennials are t o be located on the north side of the hotel near the base of the building. The size of the proposed evergreen and ornamental trees exceed the minimum requirements of the Ordinance. Grading and Drainage. Grading and drainage shall be subject to comment a nd recommendation by the City Engineer. Utilities. As part of concept plan review, it was noted that the conversion of the building from office to hotel / restaurant will require extensive alterations to building plumbing and water supply. While municip al utilities have capacity for the change of use, building improvements will require extensive building permit review. Additionally, the change of occupancy will require the payment of additional SAC / WAC charges for the increase in water usage. Issues related to utilities shall be subject to comment and recommendation by the City Engineer. RECOMMENDATION Based on our review of the project narrative and plan submission dated 10/3/2022, City staff offers the following recommendations. Approval of the conditional use permit to allow a hotel in a C-4, Commercial Office zoning district subject to the fulfillment of the following conditions: 1. All applicable American Disability Act (ADA) requirements related to parking, site and building access shall be satisfied. 2. Docks associated with the proposed hotel use shall be subject to review and approval by the Lake Minnetonka Conservation District. 3. The parking of boat trailers upon the subject site be prohibited. Applicant shall provide additional information regarding trailer access and egress of the trailer storage site and verification that the proposed storage site is allowed to conduct trailer storage. The Yacht Club 01.11.23 Page 25 4. The width of the 60-degree parking stalls located along the site’s north property line shall be expanded from 7.5 feet to 9 feet in width. (Loss of two parking stalls) 5. The compact parking along the east lot line across from the curb island containing the oak tree shall be reduced by one stall with the remaining stalls widened to 9 feet. (Loss of one parking stall) 6. The elimination of two parking stalls to increase the maneuvering areas for trucks leaving the site. (loss of two parking stalls) 7. If it is demonstrated that hotel or restaurant patrons are illegally trespassing and parking on private property, beyond 4165 Shoreline Drive, the City reserves the right to require the Yacht Club to pursue a conditional use permit for off-site parking. 8. The turning radius of the row end parking lot striping located near the northwest corner of the building shall be reduced to provide additional area for truck turning movements. 9. If the City approves the removal of the oak tree in the southwest portion of the parking lot, the applicant shall convert this area into parking and wider drive aisles and add vertical planting (trees or shrubs) along the edge of the parking lot at the southwest corner of the building to screen the lights and activities within the outdoor dining area. 10. The landscape plan be revised to install turf and shrubs in the area east of the pool instead of sand to provide plantings in the shoreland impact zone, storm water absorption and to prevent erosion. 11. Rooftop mechanical equipment shall be screened from view of adjacent properties and public rights-of-way (Shoreline Drive). 12. The trash enclosure shall be remotely locked to prevent access. Access to the trash enclosure shall take place only between the hours of 7 am and 10 pm on weekdays and 8 am and 8 pm on weekends and holidays. 13. Issues related to grading, drainage and u tilities shall be subject to comment and recommendation by the City Engineer. Approval of the conditional use permit to allow a restaurant in a C-4, Commercial Office zoning district subject to the fulfillment of the following conditions: 1. All applicable American Disability Act (ADA) requirements related to parking requirements, site and building access shall be satisfied. The Yacht Club 01.11.23 Page 26 2. The width of the 60-degree parking stalls located along the site’s north property line shall be expanded from 7.5 feet to 9 feet in width. 3. The compact parking along the east lot line across from the curb island containing the oak tree be reduced by one stall with the remaining stalls widen to 9 feet. 4. The City reserves the right to require the Yacht Club to pursue a conditional use permit for off-site parking if it is demonstrated that hotel or restaurant patrons are illegally trespassing and parking on private property, beyond 4165 Shoreline Drive. 5. Restaurant deliveries shall occur during daytime hours of 7 AM and 10 PM. 6. The turning radius of the row end parking lot striping located near the northwest corner of the building shall be reduced to provide additional area for truck turning movements. 7. The elimination of two parking stalls to increase the maneuvering areas for trucks leaving the site. (loss of two parking stalls) 8. If the City approves the removal of the oak tree in the southwest portion of the parking lot, the applicant shall convert this area into parking and wider drive aisles and add vertical planting (trees or shrubs) along the edge of the parking lot at the southwest corner of the building to screen the lights and activities within the outdoor dining area. 9. Rooftop mechanical equipment shall be screened from view of adjacent properties and public rights-of-way (Shoreline Drive). 10. The trash enclosure shall be remotely locked to prevent access. Access to the trash enclosure shall take place only between the hours of 7 am and 10 pm on weekdays and 8 am and 8 pm on weekends and holidays. 11. Issues related to grading, drainage and utilities shall be subject to comment and recommendation by the City Engineer. 12. The noise control elements cited in the project narrative shall be conditions of the conditional use permit and may be enforced by the City. 13. Collected noise monitoring data shall be shared monthly with the City to establish a record of noise levels and to track noise complaints and violations. 14. Noise level durations of six minutes or more which are in excess of what is allowed shall alert the on-site management to take immediate actions to reduce the noise levels at the site. The Yacht Club 01.11.23 Page 27 15. In the event of the applicant receiving four documented noise-related complaints, the City Council reserves the right to limit hours of outdoor operations. Approval of the conditional use permit to allow outdoor dining which is accessory to a restaurant in a C-4, Commercial Office zoning district subject to the fulfillment of the following conditions: 1. The City approve the conditional use permit to allow a restaurant use upon the subject property (the principal use to which outdoor dining will be an accessory activity). 2. The outdoor dining shall be limited to no more than 75 seats, shall not exceed the floor area illustrated on the approved site and building plans and shall comply with the design requirements of the Spring Park Zoning Code. 3. The entire outdoor dining area shall be enclosed with a fence or railing. The applicant shall provide details on locations and design of gates and latches providing access and egress to the dining area. 4. All applicable American Disability Act (ADA) requirements shall be satisfied. 5. The noise control elements cited in the project narrative shall be conditions of the conditional use permit and may be enforced by the City. 6. Collected noise monitoring data shall be shared monthly with the City to establish a record of noise levels and to track noise complaints and violations. 7. Noise level durations of six minutes or more in excess of what is allowed shall alert the on-site management to take immediate actions to reduce the noise levels at the site. 8. In the event of the applicant receiving four documented noise-related complaints, the City Council reserves the right to limit hours of outdoor operations. 9. Outdoor dining activities shall cease at 10 pm. 10. Live outdoor music performances shall only be permitted after obtaining a special event permit and shall meet the requirements of Spring Park City Code. 11. Refuse containers shall be provided within the outdoor dining area. Such containers shall be placed in a manner which does not disrupt pedestrian circulation and must be designed to prevent spillage and blowing litter. The Yacht Club 01.11.23 Page 28 12. Yacht Club property owners (or their designees) shall pick up litter within 100 feet of the outdoor dining area. 1 CITY OF SPRING PARK, MINNESOTA Planning Commission Findings of Fact & Recommendation (Approval) Applicant's/Property Owner’s Name: Olson Global, LLC Request: The applicant requests City approval of three conditional use permits to allow for the construction of a hotel, restaurant and outdoor dining accessory to the restaurant in a C-4 Commercial Office District. Planning Commission Meeting Date: January 11, 2023 Findings of Fact: Based on review of the application and evidence received, the Spring Park Planning Commission now makes the following findings of fact and recommendation: 1. The location of the subject property is as follows: 4165 Shoreline Drive 2. The planning report dated January 11, 2023 prepared by WSB is incorporated herein by reference. 3. The Applicant submitted applications for three conditional use permits to allow for the construction of a hotel, restaurant and outdoor dining accessory to the restaurant in a C-4 Commercial Office District. 4. Requests for conditional use permits require Planning Commission review and City Council approval. 5. Upon review of the planning report and application information, the Planning Commission found that the proposed plans, not including the proposed plunge pool, which has been removed from the request at this time, meet all Ordinance requirements and requirements set forth in Section 42-140 of the Zoning Ordinance. The following findings support the Planning Commission’s recommendation for approval: a. The proposed improvements (except the proposed plunge pool which has been removed from the request) meet Zoning and Shoreland Overlay District requirements. b. The proposed uses present no unreasonable hazard to the surrounding area and community as a whole. c. Specific problems with the proposed location of the uses, as set forth in the staff report will be overcome. 2 d. The proposed uses are compatible with present and future land uses of the area where the use is proposed to be located. e. There will be no significant negative impact on the peaceful and quiet enjoyment of surrounding property with regard to these uses. Recommendation: Approval of the conditional use permit to allow a hotel in a C-4, Commercial Office zoning district subject to the fulfillment of the following conditions: 1. All applicable American Disability Act (ADA) requirements related to parking, site and building access shall be satisfied. 2. Docks associated with the proposed hotel use shall be subject to review and approval by the Lake Minnetonka Conservation District. 3. The parking of boat trailers upon the subject site be prohibited. Applicant shall provide additional information regarding trailer access and egress of the trailer storage site and verification that the proposed storage site is allowed to conduct trailer storage. 4. The width of the 60-degree parking stalls located along the site’s north property line shall be expanded from 7.5 feet to 9 feet in width. (Loss of two parking stalls) 5. The compact parking along the east lot line across from the curb island containing the oak tree shall be reduced by one stall with the remaining stalls widened to 9 feet. (Loss of one parking stall) 6. The designation and size of two parking stalls shall be changed to compact stalls to increase the maneuvering areas for trucks leaving the site. 7. If it is demonstrated that hotel or restaurant patrons are illegally trespassing and parking on private property, beyond 4165 Shoreline Drive, the City reserves the right to require the Yacht Club to pursue a conditional use permit for off-site parking. 8. The turning radius of the row end parking lot striping located near the northwest corner of the building shall be reduced to provide additional area for truck turning movements. 9. If the City approves the removal of the oak tree in the southwest portion of the parking lot, the applicant shall convert this area into parking and wider drive aisles and add vertical planting (trees or shrubs) along the edge of the parking lot at the southwest corner of the building to screen the lights and activities within the outdoor dining area. 3 10. The landscape plan be revised to install turf and shrubs in the area east of the pool instead of sand to provide plantings in the shoreland impact zone, storm water absorption and to prevent erosion. 11. Rooftop mechanical equipment shall be screened from view of adjacent properties and public rights -of-way (Shoreline Drive). 12. The trash enclosure shall be remotely locked to prevent access. Access to the trash enclosure shall take place only between the hours of 7 am and 10 pm on weekdays and 8 am and 8 pm on weekends and holidays. 13. Issues related to grading, drainage and utilities shall be subject to comment and recommendation by the City Engineer. 14. The developer to consider modifying the striping on Shoreline Drive to widen/extend the shoulder as per Hennepin County request. This would create more space for people driving east bound on Shoreline Drive and making right turning movements into the site. 15. The approval of the hotel, restaurant and outdoor dining conditional use permits are predicated on the applicant removing the plunge pool from the site plans until a conditional use permit amendment or variance can be considered for the proposed pool. The pool, as it is shown on the plans, does not meet the required setback from the OHWL. All other aspects of the proposed plans are recommended for approval. 16. Staff is directed to draft and transmit these recommendations and information in accordance with the City Code. 17. A construction phasing plan to be submitted prior to any work being performed on site. Approval of the conditional use permit to allow a restaurant in a C-4, Commercial Office zoning district subject to the fulfillment of the following conditions: 1. All applicable American Disability Act (ADA) requirements related to parking requirements, site and building access shall be satisfied. 2. The width of the 60-degree parking stalls located along the site’s north property line shall be expanded from 7.5 feet to 9 feet in width. 3. The compact parking along the east lot line across from the curb island containing the oak tree be reduced by one stall with the remaining stalls widen to 9 feet. 4. Restaurant deliveries shall occur during daytime hours of 7 AM and 10 PM. 4 5. The turning radius of the row end parking lot striping located near the northwest corner of the building shall be reduced to provide additional area for truck turning movements. 6. The designation and size of two parking stalls shall be changed to compact stalls to increase the maneuvering areas for trucks leaving the site. 7. If the City approves the removal of the oak tree in the southwest portion of the parking lot, the applicant shall convert this area into parking and wider drive aisles and add vertical planting (trees or shrubs) along the edge of the parking lot at the southwest corner of the building to screen the lights and activities within the outdoor dining area. 8. Rooftop mechanical equipment shall be screened from view of adjacent properties and public rights -of-way (Shoreline Drive). 9. The trash enclosure shall be remotely locked to prevent access. Access to the trash enclosure shall take place only between the hours of 7 am and 10 pm on weekdays and 8 am and 8 pm on weekends and holidays. 10. Issues related to grading, drainage and utilities shall be subject to comme nt and recommendation by the City Engineer. 11. The noise control elements cited in the project narrative shall be conditions of the conditional use permit and may be enforced by the City. 12. Collected noise monitoring data shall be shared monthly with the City to establish a record of noise levels and to track noise complaints and violations. 13. Noise level durations of six minutes or more which are in excess of what is allowed shall alert the on-site management to take immediate actions to reduce the noise levels at the site. 14. In the event of the applicant receiving four documented noise -related complaints, the City Council reserves the right to limit hours of outdoor operations. 15. Staff is directed to draft and transmit these recommendations and information in accordance with the City Code. 16. A construction phasing plan to be submitted prior to any work being performed on site. 17. An air scrubber must be included on the architectural plans to combat external odors. Approval of the conditional use permit to allow outdoor dining which is accessory to a restaurant in a C-4, Commercial Office zoning district subject to the fulfillment of the following conditions: 5 1. The City approve the conditional use permit to allow a restaurant use upon the subject property (the principal use to which outdoor dining will be an accessory activity). 2. The outdoor dining shall be limited to no more than 75 seats, shall not exceed the floor area illustrated on the approved site and building plans and shall comply with the design requirements of the Spring Park Zoning Code. 3. The entire outdoor dining area shall be enclosed with a fence or railing. The applicant shall provide details on locations and design of gates and latches providing access and egress to the dining area. 4. All applicable American Disability Act (ADA) requirements shall be satisfied. 5. The noise control elements cited in the project narrative shall be conditions of the conditional use permit and may be enforced by the City. 6. Collected noise monitoring data shall be shared monthly with the City to establish a record of noise levels and to track noise complaints and violations. 7. Noise level durations of six minutes or more in excess of what is allowed shall alert the on-site management to take immediate actions to reduce the noise levels at the site. 8. In the event of the applicant receiving four documented noise-related complaints, the City Council reserves the right to limit hours of outdoor operations. 9. Outdoor dining activities shall cease at 10 pm. 10. Live outdoor music performances shall only be permitted after obtaining a special event permit and shall meet the requirements of Spring Park City Code. 11. Refuse containers shall be provided within the outdoor dining area. Such containers shall be placed in a manner which does not disrupt pedestrian circulation and must be designed to prevent spillage and blowing litter. 12. Yacht Club property owners (or their designees) shall pick up litter within 100 feet of the outdoor dining area. 13. Staff is directed to draft and transmit these recommendations and information in accordance with the City Code. 14. A construction phasing plan to be submitted prior to any work being performed on site. 6 City of Spring Park By: Jeff Hoffman Planning Commission Chair ATTEST Mike Anderson, City Administrator NORTHWEST ASSOCIATED CONSULTANTS, INC. __________________________________________________________________ 415 0 Olson Memorial Highway, Ste. 320, Golden Valley, MN 55422 Telephone: 763.957.1100 Website: www.nacplanning.com PLANNING REPORT TO: Mike Anderson FROM: Alan Brixius DATE: December 5, 2022 RE: The Yacht Club Hotel Conditional Use Permits • Hotel • Restaurant • Outdoor Dining Accessory to a Restaurant FILE NO: 175.01 - 22.04 BACKGROUND In the spring of 2022, Olson Global, LLC approached the City with a concept plan to convert the Minnetonka Yacht Club office building at 4165 Shoreline Drive into a hotel, restaurant with outdoor dining, and shared office space. Through the spring and early summer, the Planning Commission and City Council held a number of public hearings to solicit public comment and to consider the proposed change in land use for this site. The Planning Commission and City Council indicated that they were open to the possibility of changing the Zoning Code to accommodate the proposed land uses at this site. The City Council directed Olson Global to submit development applications for a zoning amendment to the C-4 Commercial Office district, to allow the proposed uses within this district by conditional use permit and provide more information pertaining to site plan and building changes proposed for the site. In July and August 2022, the Planning Commission and City Council conducted public hearings on a proposed zoning amendment allowing for hotels, restaurants and outdoor dining as conditional uses in the C-4 district. After conducting public hearings and reviewing the proposed Zoning Code language, the Planning Commission recommended approval of the zoning text amendment. On August 1, 2022, the City Council reviewed the proposed zoning text amendment, public comments, and recommendation of the Planning Commission and approved zoning amendment #22 -04 allowing hotels, restaurants and accessory outdoor dining as conditional uses within the C-4 zoning district. With this zoning approval, Olson Global, LLC. extended the City’s 60-day review period for the conditional use permits to allow for the submission of revised complete site and building plans and project narrative for requested conditional use permits. 2 Olson Global, LLC has submitted plans calling for the conversion of the existing Lake Minnetonka Yacht Club, located at 4165 Shoreline Drive, into a lakefront boutique hotel and restaurant. Plans received were reviewed and deemed complete on November 15, 2022. The proposed hotel project includes the following components: • 30 hotel suites with south-facing views. • A restaurant with accessory outdoor dining (the existing deck will be utilized). A maximum of 150 seats will be provided (75 indoor and 75 outdoor). • A total of 32 seasonal boat slips, 11 of which are for transient users and the balance are reserved for Yacht Club members. • A gated “plunge pool” (swimming pool) which will be available for year-round use. To be noted is that the plans have been revised in an attempt to respond to issues and concerns raised through the review of the previous concept plan. The issues and plan changes have been outlined in the body of this report. The 1.47-acre subject site is presently zoned C-4, Office Commercial. The following formal approvals are necessary to accommodate the development proposal: 1. Conditional use permit for hotel use 2. Conditional use permit for restaurant use 3. Conditional use permit for outdoor dining accessory to a restaurant Attached for reference: Exhibit A: Applicant Narrative Exhibit B: Existing Site Photographs Exhibit C: Existing Conditions Survey Exhibit D: Site Plan Exhibit E: Parking Lot Plan Exhibit F: Utility, Grading, Drainage & Erosion Control Plan Exhibit G: Landscape Plan Exhibit H: Lighting Plan Exhibit I: Exterior Renderings Exhibit J: Building Elevations Exhibit K: Floor Plans Exhibit L: Noise Study Exhibit M: Sound Plan Exhibit N: Truck Maneuvering Diagrams 3 ANALYSIS Issues. Through the public hearings held during the concept plan review, the following issues were identified related to compatibility with the adjoining residential uses to the west: 1. NOISE. Edgewater Apartments owner and residents do not believe that the uses can control nuisance noise from the hotel, restaurant, and outdoor activities proposed for the site. A noise mitigation plan has now been provided. The noise mitigation plan provides a noise study and details the methods, equipment, and process for controlling noise at the shared property line. 2. OUTDOOR LIGHTING. The applicant has submitted an outdoor lighting plan showing the location and type of light fixtures including all freestanding and wall mounted exterior lights. The plan includes a photometric plan showing light levels across the site and at the property line. 3. STAFFING. Concern was expressed for the site staffing, related to site security, on-site management of guests, and staffing to manage the outdoor activities (docks, hotel activities, noise management, etc.). This relates to the supervision and management of the on-site operations and guest behavior and the impact on required parking. The applicant’s narrative outlines the proposed staffing for all the uses associated with the hotel, restaurant, and docks. 4. PARKING. The proposed amendment outlines parking requirements for each of the proposed uses. Concerns were expressed that the parking requirements are not sufficient to address all the parking needs of the site. Issues include the necessary employee count for the site, whether the sun deck will offer drinks and food, (if so, it should be counted as outdoor dining for the parking count); dock use and special activities must also be considered. The public comments expressed concern that if the site is under parked, there is no place for overflow parking. The applicant has made changes in the variety of uses within the building and has provided a revised parking plan which addresses needed parking. 5. SUN DECK. The July planning report outlines a number of issues with the concept plan which included a 2,500 square foot freestanding sun deck. Issues included its location, the removal of trees, slope protection, increase in hard cover, and proximity of this outdoor activity to Edgewater Apartments. The revised site plan eliminates the freestanding sun deck. The revised plan set indicates that a portion of the existing deck will serve as the sun deck for exclusive use by the hotel guests and yacht club members. 6. DOCKS. Concern was raised over the number and use of the docks. The applicant stated the number of docks will remain at 32. However, some of the docks will be seasonal leases to yacht club members and some would become 4 transient docks for hotel quests and restaurant guests. Dock-related concerns include the following: a. Where will hotel guests who bring their boats to the site park their trailers. b. Parking for the yacht club members who come to the site exclusively to access their boats. c. Will there be a dock attendant? Does the parking supply count include this employee? d. Will there be other off-site lake services (fishing charters, tour boats) coming to the site which could generate visitors parking on site who are not hotel or restaurant guests? The applicant’s narrative provides a response to each of the aforementioned issues. 7. SPECIAL EVENTS. It was noted that special events may be exempt for the noise standards. This raised questions as to the type and frequency of the special events allowed on the site, location of outdoor events, noise levels, hours of operation, etc. Zoning. The subject site is zoned C-4, Commercial Office, which was recently amended to make an allowance for hotels, restaurants, and outdoor dining accessory to a restaurant as conditional uses. As a result, the processing of three separate conditional use permits (for the three referenced conditional uses) is necessary. Such uses will be subject to the various conditions (performance standards) included in the amendment. Hotel Use. The applicable C-4 zoning district now makes an allowance for “hotels” subject to conditional use permit processing and various conditions. The following is a listing of the various conditions which must be satisfied followed by related Staff comments: a. Vehicular access points shall be limited, shall create a minimum of conflict with through traffic movements, shall comply with section 42-67 of this Code, and shall be subject to the approval of the City Engineer and/or Hennepin County, as applicable. Staff Comment: The subject site is presently accessed via a single, 28-foot-wide curb cut along Shoreline Drive. No site access-related changes are proposed as part of this development application. Thus, the proposed hotel would utilize the existing site access. 5 Access-related issues will be subject to comment and recommendation by the City Engineer and/or Hennepin County. b. Parking. The site shall provide adequate parking as listed in this subsection. 42-428 (5) (b) and per section 42-67 of this Code. Hotel parking shall not interfere with on-site circulation or other uses sharing the site. The site and related parking and service shall be served by an arterial or collector street of sufficient capacity to accommodate the traffic which will be generated. Parking requirements are as follows: 1. One space per hotel room and one space per hotel employee. 2. Parking for ancillary uses such as office space, conference rooms shall be calculated per section 42-67 of this Code. 3. At least one parking stall shall be provided for every three boat slips accessory to the hotel. 4. All on-site parking shall meet the design standards of section 42-67 of this Code. 5. The site plan shall illustrate the required disability parking. Staff Comment: The applicant’s 2021 “Alta Survey” illustrates 111 off-street parking spaces, one of which is reserved for disability parking. This survey shows the configuration of the overall parking lot, stall and aisle dimensions and circulation patterns. In review of the existing parking lot design, a number of drive aisles have widths which are less than current required standards. Additionally, the parking lot has been restriped since the survey was prepared in 2021, lowering the existing parking count to 103 stalls. During the concept plan review, concerns were raised as to whether the site has adequate parking for the combination of uses that were proposed for the site. In response to his concern, the applicant has revised their project with the following changes: 1. The co-working business suites have been eliminated. The new plan consists of the hotel, restaurant, and yacht club. The previous concept plan offered 3966 square feet of office space which, by Code, requires 18 parking stalls. The previous office floor area is now proposed to be used as four hotel rooms requiring four parking stalls. 2. The new site plan eliminates the freestanding sun deck included in the original concept plan. The new sun deck for the hotel comprises the eastern portion of the existing deck, south of the building. The sun deck is 6 smaller than that proposed on the original concept plan and will available only to hotel guests and yacht club members, through the use of electronic gate security. During the concept review, concern was expressed that the freestanding sun deck would expand the outdoor dining and drinking area to the general public, thereby increasing the on-site parking demand. 3. The applicant has provided site staffing numbers which have been included in the parking calculations below. Based on the proposed uses, a total of 102 off-street parking spaces are required by Code. 4. The site plan calls for the removal of three existing trees to expand the parking count and improve site circulation. The trees to be removed include a silver maple tree located in the extreme northwest corner of the site and two crab apple trees within raised medians within the parking lot. The applicant’s arborist has identified the silver maple as being diseased and recommends the removal of said silver maple and the crab apple trees. 5. The applicant’s narrative cites, parking codes of the Cities of Excelsior and Wayzata, which allow some reduction in required parking for mixed uses. These codes assume some overlap in parking demand. 6. The parking standard for hotel requires one space per room. According to Hoteltechreport.com (10/28/2022), the average occupancy rate for hotels ranges from 65 to 80 percent. 7. The City’s restaurant parking supply standards 1 stall per three seats is in line with other lake communities (Mound, Wayzata and Excelsior). 8. There is currently on-street parking exists along Shoreline Drive (11 Stalls) and Spring Street (18 stalls). While these stalls are generally occupied by daytime businesses in the area, they may be available to the restaurant customers during the evening and weekends. Use Ratio Required Spaces Hotel (30 rooms and 4 employees) 1 space per room and 1 space per employee 34 Restaurant (150 seats) 1 space per 3 seats 50 Kitchen (665 s.f.) 1 space per 80 s.f. 9 Conference Room (330 s.f.) 1 space per 200 s.f. 2 Marina (21 boat slips) 1 space per 3 slips 7 Total 102 The new site plan illustrates 119 off-street parking stalls, five stalls of which are reserved and designated as disability parking. Of the 119 illustrated parking stalls, 14 (12 percent) are designated as “compact stalls.” According to the Ordinance, up to 20 percent of the total required parking may be designated for 7 compact cars, with stalls not less than seven feet wide and 15 feet in length . The proposed number compact parking stalls is within the maximum percentage allowance of the Zoning Code and also complies with the applicable minimum dimensional requirements. To be noted is that several areas of the existing parking lot (parking stalls and drive aisle widths) do not meet the minimum dimensional requirements of the Spring Park Code. For example, the 60-degree parking stalls which abut the north property line measure only 7.5 feet in width and the adjacent one -way drive aisle measures only 16.5 feet in width. According to the Ordinance, such stalls should measure not less than 8’- 9” in width and the adjacent one-way drive aisle should measure not less than 18’ - 6” in width. Recognizing that the existing parking lot was legally established (with grandfather rights) and has functioned relatively well over the years, it is not considered appropriate to require a complete redesign of the parking lot to current standards. It is, however, appropriate to require some modifications to parking lot design which improve function within the entire lot and accommodate service vehicles. The following recommendations are made to improve existing conditions : 1. The parking stalls along the north lot line shall be widen ed from 7.5 feet to 9 feet in width. At 9 feet in width, the stalls will exceed the City Code standard of 8 feet 9 inches for 60-degree parking stalls, however, the wider stalls will provide more maneuvering area within each stall to compensate for the narrower 16.5-foot aisle width. This change will result in the loss of two parking stalls. 2. The parking stalls located along the west lot line are properly dimension for compact cars per City Code, however, the drive aisle between the parking stalls and the curb island with the oak tree is only 13 feet wide. To improve on this existing condition, Staff recommends the elimination of one parking stall and widening the remaining stalls across from the oak tree to 9 feet wide to provide more maneuvering area within the stalls and to compensate for the narrower 13-foot aisle width. A second alternative is available if the Oak tree is deemed a hazard and removed the raised island containing the tree can be remove d and the drive aisle can be saving the available parking stalls. 3. To improve on the truck access and egress within the site, Staff recommends the elimination of two parking stalls illustrated on the truck movement diagram illustrated latter in this report. These recommendations are offered to improve access to the parking stalls and circulation throughout the parking lot. These recommendations will reduce the 8 parking count by five parking stalls resulting in a final parking count of 114 parking stalls which is still above minimum City Code requirements. Owners of adjoining properties have expressed concern regarding restaurant customers parking on their properties when the Yacht Club site parking lot is at full capacity. In light of this concern, the City may wish to impose a condition that, if Yacht Club patrons’ trespass and park on private property, the City may require the Yacht Club to pursue an off-site parking conditional use permit identifying a site and property owners’ permission for the Yacht Club to utilize the off-site parking location. To be noted is that boat trailer parking will not be allowed upon the subject site. According to the applicant’s narrative, hotel guests wishing to bring their boats to the lake will have their boat trailers stored at an off-site location. The applicant narrative has identified Bump’s Auto and Marine as the business providing the storage area. The correspondence from Joel Mernik, the business owner, identifies the storage site as being located at 5151 Highway 7 in the City of Lester Prairie. This site is 32 miles away from the Yacht Club site. The applicant must provide additional information as how the trailers will be transported to and from the storage site and whether the City of Lester Prairie will allow trailer storage on the proposed site. As a condition of conditional use permit approval, it is recommended that boat trailer parking on the subject site be prohibited. c. The hotel site plan shall illustrate all outdoor activity areas and amenities accessory to the hotel. Outdoor activity areas shall be designed to screen these areas from adjoining residential properties. Outdoor activity areas may be located within the required shoreland setback provided: 1. The site meets the lot coverage requirements of subsection 42-429 (5) of this Code. Staff Comment: Section 42-429 (5) of the Zoning Ordinance states that impervious surface coverage may not exceed 75 percent of the total lot area provided all structures, additions or expansions shall meet setback and other requirements of the Ordinance and that all development plans are reviewed and approved by the City Engineer and the Lake Minnetonka Conservation District. The submitted plans indicate that the existing site has an impervious surface coverage of 66 percent, and that coverage is proposed to be increased to 68 percent. Thus, the proposed amount of impervious surface coverage is within the maximum limit specified by the Ordinance. 9 2. Outdoor activity areas are designed and located to screen these areas from adjoining residential uses. Staff Comment: Outdoor activity areas on the site include the outdoor dining area, the plunge pool, a deck area located adjacent to lower-level guest rooms and a fire pit area with seating. All activity areas are located south of the principal building. Recognizing that residential uses border the subject site to the west, proper screening along the subject site’s west property line is of the utmost importance. The west side of the site is presently screened via mature oak trees, a row of pine trees, and fencing. All existing vegetation located in the southwest corner of the site, west of the proposed outdoor dining area, is to remain. Three trees in the parking lot area are proposed to be removed to expand the available parking, however, these trees do not provide significant screening. The large oak tree located in the southwest area of the parking lot is identified on the site plan to remain and be protected during construction. This tree provides significant visual screening of the outdoor activity area and the parking lot. The applicant’s arborists identify this oak tree as “decaying and splitting which is a major liability to life and property. The tree should be removed due to the severity of the crack, hollowed trunk , and significant weight of the tree. Two certified arborists at Bratt Tree Company strongly recommend removing tree as it is major liability to pedestrians and vehicles at this location.” The Planning Commission and Council will determine the fate of this tree. If the tree is removed, it is recommended that additional vertical plantings (trees or shrubs) be provided along the edge of the parking lot at the southwest corner of the building to screen the lights and activities within the outdoor dining area. To further minimize potential impacts, the applicant has proposed the construction of a 12-foot high, split face block sound wall on the west side of the outdoor dining area. This wall will screen outdoor dining activities from adjacent residential uses. 3. The hotel shall demonstrate accessible points of access to all accessory outdoor activity areas including docks accessory to the hotel. Staff Comment: The submitted site plan illustrates circulation routes to proposed outdoor activity areas. 10 As a condition of building permit issuance, all applicable American Disability Act (ADA) requirements will need to be satisfied. 4. Docks accessory to the hotel shall be permitted by the Lake Minnetonka Conservation District. Staff Comment: According to the submitted site plan, some existing docks are to be relocated. As a condition of conditional use permit approval, all docks associated with the proposed hotel use must be subject to review and approval by the Lake Minnetonka Conservation District. 5. All trash, recycling handling equipment shall be stored within the principal building or within a trash enclosure that screens the equipment from public streets and adjoining properties. Staff Comment: According to the submitted site plan, a gated, exterior trash handling area presently exists at the at the northwest corner of the building. No changes to the existing trash handling area are proposed. In this regard, grease from restaurant use will be stored within the trash handling area. The applicant’s narrative indicates that the trash dumpster will be locked during quiet hours (10 pm to 7 am) such that it will not be accessible to staff or hotel patrons during such time. Consistent with City Code requirements, the applicant has also indicated that trash pick-up (as well as deliveries) will be restricted to the hours of 7 am to 10 pm on weekdays and between the hours of 8 am to 8 pm on weekends and holidays. 6. Loading Area. The hotel site shall provide an on-site loading area designed to accommodate delivery vehicles. Staff Comment: Delivery activities are expected to occur near the northwest corner of the building. The submitted truck turning diagram illustrates an ability for large delivery vehicles (50 foot long) to maneuver within the site (for deliveries). Appropriately, truck turning diagrams have been submitted which demonstrate that ample area will exist within the subject site for truck maneuvering (see Exhibit M). The following Staff recommendations are offered to improve truck access and egress to the building. 1. The turning radius of the row end parking lot striping located near the northwest corner of the building be reduced to provide additional area for truck turning movements. 11 2. Two parking stalls be eliminated to provide greater truck maneuvering area for truck leaving the site. As indicated in the project narrative, deliveries will be restricted to the hours of 7 am to 10 pm on weekdays and between the hours of 8 am to 8 pm on weekends and holidays. Restaurant Use. The applicable C-4 zoning district now makes an allowance for “restaurants” subject to conditional use permit processing and various conditions. The following is a listing of the various conditions which must be satisfied as well as related Staff comments: a. Vehicular access points shall be limited, shall create a minimum of conflict with through traffic movements, shall comply with Section 42-67 of this Code and shall be subject to the approval of the City Engineer and/or Hennepin County, as applicable. Staff Comment: See previous comments related to site (hotel) access. b. Parking. The proposed building shall provide adequate parking as listed in this subsection 42-428 (6) (b) and per section 42-67 of this Code. Restaurant parking shall not interfere with on-site circulation or other uses sharing the site. The site and related parking and service shall be served 12 by an arterial or collector street of sufficient capacity to accommodate the traffic which will be generated. Parking requirements are as follows: 1. One stall per 3 restaurant seats. 2. One stall per 80 square foot kitchen space. Staff Comment: See previous comments regarding parking for all proposed uses. c. Loading Area. Restaurant site shall provide an on-site loading area designed to accommodate truck and trailer delivery vehicles with a length of 50 feet or more. Alternatively receive written confirmation from suppliers that only smaller vehicles or delivery vans will be used. Restaurant site plans shall demonstrate site access, egress and maneuvering through site without interfering with on-site parking. The restaurant site shall provide adequate space for off-street loading and unloading of all trucks serving the site per Section 42-68 of this Code. Staff Comment: Truck turning diagrams have been submitted which demonstrate truck movements within the subject site for truck with a length of 50 to maneuver within the site (see Exhibit M). See comments on truck access and egress note under the hotel review. d. All trash, recycling, grease trap handling equipment shall be stored within the principal building or within a trash enclosure that screens the equipment from public streets and adjoining properties. Staff Comment: The hotel and restaurant will share the existing exterior trash handling area located at the northwest corner of the building. See previous comments regarding trash enclosure for hotel use. e. Noise. The applicant shall abide by the maximum noise level guidelines as stated in residential land use limits in Chapter 18, Article III, Section 18 -122 of this Code. No excessive noise will be permitted. The following provisions are required to monitor and to control noise levels: 1. Outdoor weatherproof noise monitoring equipment shall be installed, and a record of noise levels maintained. i) Reports of noise levels shall be submitted to the City monthly. ii) The applicant shall provide a detailed noise monitoring and mitigation plan. 13 iii) Noise levels a duration of 6 minutes or more in excess of what is allowed will alert the on-site management to take immediate actions to reduce the noise levels at the site. 2. These restrictions shall not apply if granted a special event permit approved by the City with an explicit, written exemption from noise standards. 3. In the event of the applicant receiving four (4) documented complaints, the City Council reserves the right to limit hours of outdoor operations. This subsection 42-428 (6) (e) (3) does not limit the City’s ability to revoke a conditional use permit. Staff Comment: The applicant has submitted a noise study which outlines measures to control noise emanating from the restaurant patio (see Exhibit K). The study concludes that, without mitigation, daytime patio noise meets the required 65 dBA requirement at the nearest residential receivers. The City and State of Minnesota both define “daytime” as being from 7 AM to 10 PM. In this regard, the study states that no noise mitigation is needed for the outdoor patio to meet the daytime requirements. The study indicates that the patio’s low elevation south of the building along with berm /foliage along the site’s western boundary contribute to such noise level compliance. Despite the noise study findings, the applicant is proposing the following noise mitigation and monitoring efforts: • Noise monitoring equipment shall be installed near the top of the stairs above the patio that will record data and alert property managers if it exceeds regulated levels for six or more consecutive minutes. The applicants plan to use NoiseAware monitoring system for this purpose. • An 8’ x 4’ fireplace area with a 12-foot-high adjoining wall on the southwest corner of the patio to absorb and redirect sound. • The use of directional speaker layout and sound plan (Exhibit M). • The project narrative states that the outdoor dining area will be closed by 10 PM. • The project narrative indicates that access to the trash enclosure will be restricted to daytime hours to avoid late night noise issues. In regard to noise mitigation efforts, Planning Staff recommends the following as conditions of conditional use permit approval: 14 1. The noise control elements cited in the project narrative shall be conditions of the conditional use permit and may be enforced by the City. 2. The City impose a maximum decibel level requirement for documentation purposes. In this regard, it is recommended that noise produced upon the subject site not exceed 65 dBA during daytime hours (7 am to 10 pm) and 55 dBA during evening hours (10 pm to 7 am) as measured from all property lines. 3. Collected noise monitoring data shall be shared monthly with the City to establish a record of noise levels and to track noise complaints and violations. 4. Noise levels at a duration of six minutes or more in excess of what is allowed shall alert the on-site management to take immediate actions to reduce the noise levels at the site. 5. In the event of the applicant receiving four documented noise-related complaints, the City Council reserves the right to limit hours of outdoor operations. Odors. During the concept plan review, concerns were expressed with regard to odors emanating from the restaurant’s commercial kitchen. In response to this issue the project narrative indicates that kitchen venting will be through a chase along the west side of the main staircase and vented through the building roof more than 150 feet from the nearest lot line. Accessory Outdoor Dining Use. The applicable C-4 zoning district now makes an allowance for “outdoor dining accessory to a restaurant” subject to conditional use permit processing and various conditions. The following is a listing of the various conditions which must be satisfied as well as related Staff comments: a. A site plan and other pertinent information shall be submitted demonstrating the location and type of all tables, refuse receptacles, and wait stations. Staff Comment: The submitted lower-level floor plan appropriately illustrates the restaurant’s interior and exterior table locations. b. The outdoor dining area shall be fenced according to the requirements of Section 42-64 (i) of this Code, to define its boundaries and access to the outdoor dining area be provided only via the principal building. Staff Comment: According to the applicant, an existing ornamental fence (railing), within which the outdoor dining area is to be located, is to remain in 15 place and be repainted. The site photographs include an image the existing fence (see below). While the existing fencing is considered acceptable, it is recommended that the site plan be modified to specify the location, type, and design of outdoor dining area gates and latches for access and egress to the dining area. c. The size of the outdoor area is restricted to no more than thirty (30) percent of the total floor area within the principal structure. Staff Comment: The proposed outdoor dining area measures approximately 1,800 square feet in size which is considerably less than 30 percent of the three- story principal building. The size of the outdoor dining shall be limited to the approved site plan. d. The outdoor dining area shall be screened from view from adjacent residential uses in accordance with subsection 42-64(j) of this Code. Staff Comment: See previous comments related to screening. e. All exterior lighting shall be totally screened or consist of ninety-degree (90°) cutoff light fixtures with a shielded light source directed so that the light source shall not be visible from the public right-of-way away or adjacent residential properties and shall be in compliance with subsection 42-63(h) of this Code. 16 Staff Comment: As required, the applicant has submitted a photometric lighting plan and photographic examples of the proposed light fixtures. According to the plan, existing light poles are to remain in place, but the luminaries within such fixtures will be replaced. According to the Ordinance, any lighting used to illuminate an off -street parking area, structure, or area must be arranged to deflect light away from any adjoining property or from any public right -of-way. Further, the Ordinance states that no light source or combination thereof which casts light on a public street shall exceed one footcandle meter reading as measured from the centerline of said street nor shall any light source or combination thereof which casts light on adjacent property exceed four -tenths footcandles as measured at the property line. The submitted photometric lighting plan demonstrates compliance with the City’s exterior lighting requirements. f. Noise. The applicant shall abide by the maximum noise level guidelines as stated in residential land use limits in Chapter 18, Article III, Section 18-122 of the Spring Park City Code. No excessive noise will be permitted. The following provisions are required to monitor and to control noise levels: 1. Outdoor weatherproof noise monitoring equipment shall be installed, and a record of noise levels maintained. i) Reports of noise levels shall be submitted to the City monthly. ii) The applicant shall provide a detailed noise monitoring and mitigation plan. iii) Noise levels for a duration of 6 minutes or more in excess of what is allowed will alert the on-site management to take immediate actions to reduce the noise levels at the site. 2. These restrictions shall not apply if granted a special event permit approved by the City with exemption from noise standards. 3. In the event of the applicant receiving four (4) documented complaints, City Council reserves the right to limit hours of outdoor operations. This subsection 42-428 (7) (f) (3) does not limit the City’s ability to revoke a conditional use permit. 4. Outdoor electronically amplified audio speaker shall be designed and located to direct sound toward the principal building on the site and away from adjoining properties. Property owner shall control 17 volumes to prevent noise levels at the property lines that exceed the City standard outlined in Chapter 18, Article III, Section 18-122 of the Code. Staff Comment: See previous noise-related comments. Additionally, if live outdoor music performances are planned, such performances shall only be permitted after obtaining a special event permit and shall meet the requirements of Spring Park City Code. To further mitigate potential noise impacts, the applicant has expressed an intent to cease outdoor dining activities at 10 pm. It is recommended that this be imposed as a condition of conditional use permit approval. g. The site plan shall demonstrate that pedestrian circulation is not disrupted as a result of the outdoor dining area by providing the following: 1. Outdoor area shall be segregated from through pedestrian circulation by means of fencing. 2. Minimum clear passage zone for pedestrians at the perimeter of the facility shall be at least five feet without interference from parked motor vehicles, bollards, trees, tree gates, curbs, stairways, trash receptacles, streetlights, parking meters, or the like. 3. Overstory canopy of trees, umbrellas or other structures extending into the pedestrian clear passage zone or pedestrian aisle shall have a minimum clearance of seven feet above sidewalk. Staff Comment: The lower-level floor plan appropriately illustrates table and pedestrian aisle locations within the proposed outdoor dining area. Clear passage zones of five feet are illustrated. h. The outdoor area is surfaced with concrete, bituminous or decorative pavers or may consist of a deck with wood or other flooring material that provides a clean, attractive, and functional surface. Staff Comment: The existing deck has a wood floor. i. A minimum width of 36 inches shall be provided within aisles of the outdoor area. Staff Comment: As previously indicated, the lower-level floor plan illustrates five- foot-wide aisles within the outdoor dining area. 18 j. Refuse containers are provided for outdoor dining areas. Such containers shall be placed in a manner which does not disrupt pedestrian circulation and must be designed to prevent spillage and blowing litter. Staff Comment: The preceding requirement will be made a condition of conditional use permit approval. k. Property owners shall pick up litter within one hundred feet (100') of the patio area. Staff Comment: The preceding requirement will be made a condition of conditional use permit approval. l. Live outdoor music performances shall only be permitted after obtaining a special event permit and shall meet the requirements of Spring Park City Code. Staff Comment: The preceding requirement will be made a condition of conditional use permit approval. Other Issues Setbacks. Required structure setbacks in the C-4, Commercial Office are as follows: • No less 30 feet when abutting a County street • Except as provided below, not less than 10 feet on any side yard • No less than 20 feet on any side yard abutting residentially zoned property • No less than 50 feet from the ordinary high -water level (OHWL) To be noted , the Ordinance does allow water-oriented structures within the 50-foot shoreland setback area. No physical expansions to the existing principal building are proposed. The proposed “plunge pool,” located south of the building, will encroach within the 50-foot OHWL setback requirement. A 10-foot setback from the OHWL is proposed Restaurant Staffing. As part of previous plan review, questions arose related to restaurant staffing. As a follow-up, the applicant contacted two area restauranteurs related to recommended staffing levels. Specifically, Aaron Switz who operates the Yumi restaurant in Excelsior and the new Macanda restaurant in 19 Wayzata, and Deacon Eells, who operates the Coalition and Red Sauce Rebellion in Excelsior, were contacted. Both restaurant operators believe that 15 people (front and back of house) is adequate to operate a 150-seat restaurant at full capacity. Restaurant Access. The west building elevation illustrates a doorway access to the lower-level restaurant. Such doorway is not, however, illustrated on the lower- level floor plan. As a condition of conditional use permit approval, either the west building elevation or lower-level floor plan should be adjusted to reflect the intended inclusion or exclusion of west-facing restaurant doorway. Fire Pit Area. The submitted site plan illustrates a fire pit area located west of the “plunge pool.” Construction of the fire pit will require the removal of some vegetation. The fire pit area is intended for the exclusive use of hotel guests and the Yacht Club members and will be segregated from the outdoor dining area via a fence and security gate. Rooftop Mechanical Equipment. The submitted plans indicate that rooftop mechanical equipment will be located in an area which potentially may be visible from the north side of the building. As a condition of conditional use permit approval, rooftop mechanical equipment must be screene d from view of adjacent properties and public rights-of-way (Shoreline Drive). Tree Preservation and Landscaping. The submitted landscape plan indicates that five existing trees are to be p rotected during construction activities and remain on the site. The applicant has also indicated that seven trees will be removed (to accommodate construction activities ). In review of the submitted landscape plan, the following comments and recommendations are offered: 1. The removal of the silver maple and the crab apple trees in and along the parking lot is acceptable to accommodate additional parking and improved traffic circulation within the parking lot. These trees in their current condition provide limited site screening. 2. The removal of the locust trees along the south side of the deck is needed for the construction of the plunge pool. The landscape plan also calls for the removal of the shrubs along the south side of the deck and replace s them with sand. Staff recommends that the area east of the pool be revegetated with turf and shrubs instead of sand to provide plantings in the shoreland impact zone, storm water absor ption and to prevent erosion. 3. The large oak tree in the southwest area of the parking lot is identified on the site plan to remain and be protected during construction. This tree provides significant visual screening of the outdoor activity areas and the parking lot. 20 As previously indicated, the applicant’s arborists identify this oak tree as “decaying and splitting, which is a major liability to life and property. The tree should be removed due to the severity of the crack, hollowed trunk , and significant weight of the tree. Two certified arborists at Bratt Tree Company strongly recommend removing tree as it is major liability to pedestrians and vehicles at this location.” The Planning Commission and Council will determine the fate of this tree. If the tree is removed, we recommend requiring some additional vertical planting (trees or shrubs) along the edge of the parking lot at the southwest corner of the building to visually screen the lights and activities within the outdoor dining area. The landscape plan includes the following new plantings; three evergreen trees, one ornamental tree, and 11 perennials (Hosta) are to be planted on the site. The three evergreen trees are to be planted on the east side of the sun deck and will provide year-round screening from the adjacent property to the east. The ornamental tree is to be located on the east side of the hotel building . The perennials are to be located on the north side of the hotel near the base of the building. The size of the proposed evergreen and ornamental trees exceed the minimum requirements of the Ordinance . Grading and Drainage. Grading and drainage shall be subject to comment and recommendation by the City Engineer. Utilities. As part of concept plan review, it was noted that t he conversion of the building from office to hotel / restaurant will require extensive alterations to building plumbing and water supply. While municipal utilities have capacity for the change of use , building improvement s will require extensive building permit review. Additionally, the change of occupancy will require the payment of additional SAC / WAC charges for the increase in water usage. Issues related to utilities shall be subject to comment and recommendation by the City Engineer. RECOMMENDATION Based on our review of the project narrative and plan submission dated 10/3/2022, City staff offers the following recommendations. Approval of the conditional use permit to allow a hotel in a C-4, Commercial Office zoning district subject to the fulfillment of the following conditions: 1. All applicable American Disability Act (ADA) requirements related to parking, site and building access shall be satisfied. 21 2. Docks associated with the proposed hotel use shall be subject to review and approval by the Lake Minnetonka Conservation District. 3. The parking of boat trailers upon the subject site be prohibited. Applicant shall provide additional information regarding trailer access and egress of the trailer storage site and verification that the proposed storage site is allowed to conduct trailer storage. 4. The width of the 60-degree parking stalls located along the site’s north property line shall be expanded from 7.5 feet to 9 feet in width. (Loss of two parking stalls) 5. The compact parking along the east lot line across from the curb island containing the oak tree shall be reduced by one stall with the remaining stalls widened to 9 feet. (Loss of one parking stall) 6. The elimination of two parking stalls to increase the maneuvering areas for trucks leaving the site. (loss of two parking stalls) 7. If it is demonstrated that hotel or restaurant patrons are illegally trespassing and parking on private property, beyond 4165 Shoreline Drive, the City reserves the right to require the Yacht Club to pursue a conditional use permit for off-site parking. 8. The turning radius of the row end parking lot striping located near the northwest corner of the building shall be reduced to provide additional area for truck turning movements. 9. If the City approves the removal of the oak tree in the southwest portion of the parking lot, the applicant shall convert this area into parking and wider drive aisles and add vertical planting (trees or shrubs) along the edge of the parking lot at the southwest corner of the building to screen the lights and activities within the outdoor dining area. 10. The landscape plan be revised to install turf and shrubs in the area east of the pool instead of sand to provide plantings in the shoreland impact zone, storm water absorption and to prevent erosion. 11. Rooftop mechanical equipment shall be screened from view of adjacent properties and public rights -of-way (Shoreline Drive). 12. The trash enclosure shall be remotely locked to prevent access. Access to the trash enclosure shall take place only between the hours of 7 am and 10 pm on weekdays and 8 am and 8 pm on weekends and holidays. 22 13. Issues related to grading, drainage and utilities shall be subject to comment and recommendation by the City Engineer. Approval of the conditional use permit to allow a restaurant in a C-4, Commercial Office zoning district subject to the fulfillment of the following conditions: 1. All applicable American Disability Act (ADA) requirements related to parking requirements, site and building access shall be satisfied. 2. The width of the 60-degree parking stalls located along the site’s north property line shall be expanded from 7.5 feet to 9 feet in width. 3. The compact parking along the east lot line across from the curb island containing the oak tree be reduced by one stall with the remaining stalls widen to 9 feet. 4. The City reserves the right to require the Yacht Club to pursue a condi tional use permit for off-site parking if it is demonstrated that hotel or restaurant patrons are illegally trespassing and parking on private property, beyond 4165 Shoreline Drive. 5. Restaurant deliveries shall occur during daytime hours of 7 AM and 10 PM. 6. The turning radius of the row end parking lot striping located near the northwest corner of the building shall be reduced to provide additional area for truck turning movements. 7. The elimination of two parking stalls to increase the maneuvering areas for trucks leaving the site. (loss of two parking stalls) 8. If the City approves the removal of the oak tree in the southwest portion of the parking lot, the applicant shall convert this area into parking and wider drive aisles and add vertical planting (trees or shrubs) along the edge of the parking lot at the southwest corner of the building to screen the lights and activities within the outdoor dining area. 9. Rooftop mechanical equipment shall be screened from view of adjacent properties and public rights-of-way (Shoreline Drive). 10. The trash enclosure shall be remotely locked to prevent access. Access to the trash enclosure shall take place only between the hours of 7 am and 10 pm on weekdays and 8 am and 8 pm on weekends and holidays. 11. Issues related to grading, drainage and utilities shall be subject to comment and recommendation by the City Engineer. 23 12. The noise control elements cited in the project narrative shall be conditions of the conditional use permit and may be enforced by the City. 13. Collected noise monitoring data shall be shared monthly with the City to establish a record of noise levels and to track noise complaints and violations. 14. Noise level durations of six minutes or more which are in excess of what is allowed shall alert the on-site management to take immediate actions to reduce the noise levels at the site. 15. In the event of the applicant receiving four documented noise-related complaints, the City Council reserves the right to limit hours of outdoor operations. Approval of the conditional use permit to allow outdoor dining which is accessory to a restaurant in a C-4, Commercial Office zoning district subject to the fulfillment of the following conditions: 1. The City approve the conditional use permit to allow a restaurant use upon the subject property (the principal use to which outdoor dining will be an accessory activity). 2. The outdoor dining shall be limited to no more than 75 seats, shall not exceed the floor area illustrated on the approved site and building plans and shall comply with the design requirements of the Spring Park Zoning Code. 3. The entire outdoor dining area shall be enclosed with a fence or railing. The applicant shall provide details on locations and design of gates and latches providing access and egress to the dining area. 4. All applicable American Disability Act (ADA) requirements shall be satisfied. 5. The noise control elements cited in the project narrative shall be conditions of the conditional use permit and may be enforced by the City. 6. Collected noise monitoring data shall be shared monthly with the City to establish a record of noise levels and to track noise complaints and violations. 7. Noise level durations of six minutes or more in excess of what is allowed shall alert the on-site management to take immediate actions to reduce the noise levels at the site. 24 8. In the event of the applicant receiving four documented noise-related complaints, the City Council reserves the right to limit hours of outdoor operations. 9. Outdoor dining activities shall cease at 10 pm. 10. Live outdoor music performances shall only be permitted after obtaining a special event permit and shall meet the requirements of Spring Park City Code. 11. Refuse containers shall be provided within the outdoor dining area. Such containers shall be placed in a manner which does not disrupt pedestrian circulation and must be designed to prevent spillage and blowing litter. 12. Yacht Club property owners (or their designees) shall pick up litter within 100 feet of the outdoor dining area. cc. Mary Tietjen Mike Nielson Scott Qualle Jamie Hoffman T (612) 337-6100 F (612) 339-6591 100 Washington Ave S. | Suite 1300 Minneapolis, MN 55401 siegelbrill.com January 5, 2023 Via Email ( manderson@ci.spring-park.mn.us ) Member of the Planning Commission City of Spring Park 4349 Warren Ave Spring Park, MN 55384 Re: Yacht Club Hotel Conditional Use Permit Applications Our File No. 31026 Dear Planning Commissioners: We represent Kyle R. Danielson, DDS PLLC, the owner of Spring Park Dentistry, which is one of the long-term tenants in the Yacht Club. As you will recall, through my letter to you dated December 9, 2022, we demonstrated that the Planning Commission is required by the terms of the City’s zoning ordinance to consider the impacts of the proposed hotel and restaurant on our client and the other long-term office tenants of the Yacht Club building. And we showed, through my letter and the public hearing testimony of Dr. Danielson, that those impacts would be severe and would threaten the continued viability of the dental practice. In response, I received a letter dated December 22, 2022, from Joseph J. Murphy, whose firm assumed the role of City Attorney as of January 1, 2023. In his letter, Mr. Murphy acknowledges that “the Planning Commission must … analyze the compatibility of the ‘proposed use’ with the other uses in the area,” but he then argues that the dental practice is part of the proposed use. Specifically, he argues that the proposed use here is “a combination of uses including a hotel, restaurant, outdoor dining, and professional offices.” This argument absorbs the tenants and their leasehold interests into the development proposal and thereby eliminates them from consideration of whether the proposed conditional uses are appropriate in this location. In support of his argument, Mr. Murphy cites Sec. 42-140(4), which does refer to the compatibility of the “proposed use” with other uses in the area. But Mr. Murphy ignores other provisions of the Zoning Ordinance that cannot be reconciled with his argument. This is apparent from a consideration of the relevant provisions in their entirety, and not just selective quotations. Section 42-143, entitled “Planning Commission action,” provides in relevant part: (1) The planning commission shall consider possible adverse effects of the proposed amendment or conditional use. Its judgement shall be based upon the factors set forth in section 42-140. This provision makes clear from the outset that the adverse effects that the Planning Commission must consider are those of the specific proposed conditional uses—not the proposed mixture of uses, as the City Attorney has suggested. Turning to the factors set forth in section 42-140, that section provides as follows: The purpose of the procedures set out in this division is to provide the city with a reasonable opportunity to protect and preserve the general welfare and the public health and safety by requiring a showing by each applicant for a conditional use permit or amendment that: (1) The standards set forth in this chapter will be, at all times, complied with. (2) The proposed use presents no unreasonable hazard to the surrounding area and community as a whole. (3) Specific problems with the proposed location of the use, as set forth in any staff review or technical assistance report, will be overcome. (4) The proposed use is compatible with present and future land uses of the area where the use is proposed to be located. (5) There will be no significant negative impact on the peaceful and quiet enjoyment of surrounding property. These provisions favor the tenants’ position in a number of respects. First, section 42-140 states that the very purpose of the conditional-use rules is to protect the “general welfare” and the “public health and safety.” The City Attorney’s argument that only the interests of the owners of property other than 4165 Shoreline Drive should count cannot be squared with this language, which requires consideration of the widest possible effects. Second, item (4) explicitly requires the applicant to show that the proposed use is compatible with present and future land uses “of the area where the use is proposed to be located.” The area where the uses at issue are proposed to be located is 4165 Shoreline Drive, and the dental practice is one of the present and future uses of that area. Third, item (2) seeks to protect “the community as a whole” from unreasonable hazards. The community as a whole unquestionably includes the dental practice and its patients and employees as well as the other tenants. Finally, if it was the intention of the Zoning Ordinance to consider impacts only on owners of property adjoining the site of the proposed conditional uses, it would say so. Instead, it uses a wide variety of phrases—including the “general welfare,” “public health and safety,” “surrounding area,” “community as a whole,” “the area where the use is proposed to be located,” and the “surrounding property” – to convey the principle that the City is to consider impacts broadly, throughout the community. The only way to do that is to evaluate any and all impacts of the proposed conditional uses, regardless of which members of the community are impacted. The arguments to date have focused on the interests of the tenants of the Yacht Club, but it must be emphasized that the Zoning Ordinance anticipates the possibility that an office building could also be set up as a “commercial-industrial condominium.” That type of condominium is defined in the ordinance as “[a] commercial and/or industrial structure containing individually owned work areas and jointly owned and shared facilities.” Sec. 42-37. That means that as the City processes these applications it must be prepared for the possibility that a future similar development could involve a commercial condominium. Accordingly, unless the City is prepared to say that the interests of the owner of an office condo would be irrelevant to whether the owner of another condo space in that same building is entitled to a conditional use permit for a hotel or restaurant or other disruptive use, there must be some principled basis in the Zoning Ordinance for distinguishing between tenants and condo owners. The fact is, there isn’t any such basis. Like the owner of an office condo, my client has a property interest in a portion of the Yacht Club building. Two final points in the City Attorney’s letter require a response. First, the letter says that if the City were to accept the argument that the interests of the tenants must be considered, “a property owner would never be able to convert uses internally within a property unless all tenants either consent or are evicted.” This argument presents a logical fallacy. It is not the tenants who are standing in the way of the conversion of certain uses in this building. It is the fact that the building that the developer seeks to convert is subject to certain long-term leasehold interests—interests the developer was fully aware of before closing on the purchase. One can speculate that this occurred either because “the price was right,” or because the developer misjudged its ability to negotiate lease termination agreements. Either way, it is neither just nor in keeping with the City’s ordinances to try to force the tenants to bear the burden of decisions the developer may now regret. Second, the City Attorney’s letter refers to a “proposed interim use” of the property. To be clear, the pending applications do not seek an interim use permit for any use, and the C-4 district where the property is located does not even recognize any permitted interim uses. The concept of an “interim use” has no bearing whatsoever on the issues before you. For all of the foregoing reasons, and for the reasons stated in our previous letters to the Planning Commission and City Council dated December 9 and December 15, 2022, we respectfully urge you to deny these applications. Very truly yours, Mark Thieroff (612) 337-6402 | Direct markthieroff@siegelbrill.com cc. Client (via email) Members of the City Council Joseph J. Murphy (via email)