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02. CPA Density & Zoning Next Steps Discussion - CC Memo 1 | P a g e Date of Meeting: August 7, 2024 To: Honorable Mayor and Members of the City Council From: T.J. Hofer, Consultant City Planner Re: Comprehensive Plan Amendment for Density and Zoning Next Steps Discussion The City Council approved a Comprehensive Plan Amendment at their May 21, 2024, meeting. This amendment was submitted to the Metropolitan Council (Met Council) for review. The Met Council has determined the application to be “incomplete.” The incomplete letter is attached. The Met Council has stated that the amendment is “not compatible” with the Thrive 2040 system statements. At the July 16, 2024, City Council meeting, staff gave a presentation to outline the conflicts with the Met Council and potential steps forward. The staff report from the July meeting is attached. RECOMMENDATION The Council may wish to still amend the Comprehensive Plan to ensure consistency and the vision of the City Council. What can be amended to meet the vision of the Council is somewhat limited by Met Council policy and the Thrive 2040 system statement. The Council should discuss what they would like development to look like in the area with the Community Designation of Rural Center and if the area of the City currently defined as Rural Center is appropriate. The Unified Development Code (UDC) needs to be amended to ensure consistency with the Comprehensive Plan and the vision of the City Council. The Council should discuss potential amendments to the UDC that directs development in the Village district to match the Comprehensive Plan. The Council should direct staff regarding needed amendments to the adopted documents. Attachments 1. City Council "Update: Comprehensive Plan Amendment for Density and Zoning Discussion” Packet, July 16, 2024 1 | P a g e Date of Meeting: July 16, 2024 To: Honorable Mayor and Members of the City Council From: T.J. Hofer, Consultant City Planner Re: Update: Comprehensive Plan Amendment for Density and Zoning Discussion The City Council approved a Comprehensive Plan Amendment at their May 21, 2024, meeting. This amendment was submitted to the Metropolitan Council (Met Council) for review. The Met Council has determined the application to be “incomplete.” The incomplete letter is attached. Staff met with the sector representative, Emma Dvorak, and the reviewer for the amendment, MacKenzie Young-Walters, to discuss the amendment before the incomplete letter was issued. The Met Council has stated that the amendment is “not compatible” with the Thrive 2040 system statements. Staff have prepared a presentation to discuss the information received from the Met Council, which is attached. Additionally, staff have continued to discuss possible next steps with the Met Council through email. Those emails are attached for reference and review. Staff requested that the sector representative or reviewer attend the meeting, but the Met Council staff was unavailable. RECOMMENDATION The UDC, and possibly Comp Plan, need to be amended to ensure consistency and the vision of the City Council. The Council should discuss what they would like development to look like in the area with the Community Designation of Rural Center. The Council should direct staff regarding potential needed amendments to the adopted documents Attachments 1. “Update on Density and Zoning Comprehensive Plan Amendment” Presentation Slides 2. City of Scandia – Density and Zoning Reference Comprehensive Plan Amendment – Incomplete for Review, dated July 3, 2024 3. Email from MacKenzie Young-Walters, dated July 10 through July 12, 2024 July 16, 2024 Update on Density and Zoning Comprehensive Plan Amendment ▪Council approved submittal of the comprehensive plan amendment (CPA) for updates to the 2040 Comprehensive Plan regarding density and zoning references ▪Metropolitan Council reviews all CPAs within the seven-county metro ▪City Administrator and City Planner met with the reviewer and the sector rep from the Met Council on 6/28 ▪CPA was deemed incomplete on July 3, 2024 Density & Zoning CPA Update ▪Density levels are established by the Met Council and correlates with Community Designation Met Council Standards ▪Met Council designates Scandia as Diversified Rural ▪Entire city limited to maximum density of 4 du/40 acres Met Council Standards ▪2040 Comp Plan requested the village area be changed to Rural Center with “grandfathered” density of 1 du/2.5 acres Met Council Standards 1 du/ 2.5 acres 4 du/ 40 acres ▪1 du/2.5 acres mirrors Rural Residential Community Designation ▪Met Council has a standing policy that no new land can be designated as Rural Residential, as the development pattern is not conducive to sewered development Met Council Standards ▪Future Land Use in the 2040 Comp Plan must mirror Community Designations in terms of density, but is used to guide types of development and uses ▪Zoning districts further refine this and are the tool to enact comprehensive plans Future Land Uses Community Designation Future Land Use Zoning Districts Abbreviations Diversified Rural (CD-DR)4 du/40 AC Rural Center (CD-RC)3–5 du/ 1 AC Rural Residential (CD-RR)1 du/2.5 AC (preferred at 1/10) General Rural (FLU-GR)4 du/40 AC Village Mixed Use (FLU-VMU)1 du/2.5 AC Village Neighborhood (FLU-VN)1 du/2.5 AC Village Neighborhood (UDC-VN)1 DU/1.5 AC or 4 DU/40 AC Village Historic Core (UDC-V-HC)5 DU/40 AC or 5 du/1 acre Village Center (UDC-V-C)5 DU/40 AC Community Designations (CD) - Met Council Future Land Use (FLU) - Comp Plan UDC (Zoning Districts) / Proposed Future Land Use Existing Future Land Use Map 1 du/ 2.5 acres 4 du/ 40 acres 1 du/ 2.5 acres Council-Approved Future Land Use Map 4 du/40 acres OR 1 du/1.5 acres 4 du/ 40 acres 5 du/40 acres OR 5 du/1 acre Table II-I –Current Residential Allowed Density Ranges Future Land Use Category Units/Acres Agriculture Core 4/40 General Rural 4/40 Village Mixed Use 5/40 or 5/1* Village Neighborhood 4/40 or 1/1.5* St. Croix River District 4/40 Agricultural Preserve 1/40 *Densities only available if conditions established in the adopted zoning and subdivision ordinance are met ▪Proposed density based on UDC standards ▪Met Council Issues: ▪Proposed density of 1 du/1.5 acres is too dense for Village Neighborhood FLU based on the grandfathered CD-RC 1 du/2.5 acres ▪Village Mixed Use FLU at 5/40 is inconsistent with CD- DR (4/40) ▪Density bonuses cannot allow higher density than allowed by Community Designations ▪UDC must be amended to be consistent with the Comp Plan, or the UDC is not legally defendable ▪UDC-VN, UDC-V-HC, and UDC-V-C are not consistent ▪Open Space Conservation Planned Unit Development (OS-PUD) 75% bonus is not allowable per Met Council Met Council Issues ▪Do not amend Comp Plan ▪UDC would need to be amended to be consistent with the Comp Plan ▪UDC could be amended to require certain standards to allow for development at 1 du/2.5 acres, but they cannot be discretionary (plat v. PUD) (see email from Met Council) ▪Amend Comp Plan to redraw FLU-VN area ▪The Future Land Use map could be amended to redraw where the area that can be developed at 1 du/2.5 acres to limit where higher density development happens ▪Met Council has stated that if the area is reduced, it will never be allowed to be expanded with the 1 du/2.5 acres exception ▪UDC could still be amended to require certain standards for this density (see email from Met Council) ▪Amend Comp Plan to be consistent with Met Council standards ▪CD-RC would allow for 3-5 du/1 acre ▪UDC could be amended to require certain standards for different levels of density (see email from Met Council) Options ▪The UDC, and possibly Comp Plan, need to be amended to ensure consistency and the vision of the City Council ▪The Council should discuss what they would like development to look like in the area with the Community Designation of Rural Center ▪The Council should direct staff regarding potential needed amendments to adopted documents Steps Forward Metropolitan Council (Regional Office & Environmental Services) 390 Robert Street North, Saint Paul, MN 55101-1805 P 651.602.1000 | F 651.602.1550 | TTY 651.291.0904 metrocouncil.org An Equal Opportunity Employer July 3, 2024 T.J. Hofer, City Planner City of Scandia 14727 209th Street North Scandia, MN 55073 RE: City of Scandia – Density and Zoning Reference Comprehensive Plan Amendment – Incomplete for Review Metropolitan Council Review File No. 21979-9 Metropolitan Council District No. Dear T.J. Hofer: The Metropolitan Council received the City’s Density and Zoning Reference comprehensive plan amendment for review on June 12, 2024. Council staff finds that parts of the plan amendment submittal are incomplete and further review has been suspended pending receipt of the following: Forecasts (Todd Graham, 651-602-1322) Land use Tables II-O and II-M should be updated to fully incorporate the changes in Village Neighborhood, General Rural and Agricultural Core acreage and the density permitted without discretionary (i.e. PUD) approvals. Land Use (MacKenzie Young-Walters, 651-602-1373) • The area guided Village Neighborhood (VN) and Village Mixed Use (VM) have the Rural Center Community Designation. Thrive MSP 2040 (Thrive) requires Rural Centers to plan for a density range of 3 to 5 units per acre; however, in the City’s 2040 Comprehensive Plan the Metropolitan Council agreed to a maximum density of 1 unit per 2.5 acres for these areas in deference to the existing development pattern and limitations presented by the City’s wastewater treatment systems. A limited expansion of the area guided VN was also permitted to accommodate desired growth and provide support for the historic village center. Any change from the existing 1 unit per 2.5 acres density permitted in the portion of the community designated as a Rural Center would need to be consistent with the density ranges established in Thrive. The proposed change to a density range of 4 units per 40 acres to 1 unit per 1.5 acres (subject to PUD approval) for the area guided VN is not compatible with the Rural Center designation, nor is it compatible with the Diversified Rural designation, which Thrive limits to a maximum density of 4 units per 40 acres, present in the rest of the community. Similarly, the proposed density range of 5 units per 40 acres to 5 units per acre for the area guided VM is not compatible with either designation. • The text within the various land use categories indicates that density bonuses of up to 75% beyond the listed maximum density may be permitted through zoning approvals. The density listed in the land use section of the 2040 Comprehensive Plan establishes the maximum permitted density and any zoning approvals must fall within the established range. The density described in the description of the land use categories should be reconciled with the established Page - 2 | July 3, 2024 | METROPOLITAN COUNCIL density ranges. Per Minn. Stat. § 473.858, if the comprehensive plan conflicts with the zoning ordinance, the zoning ordinance shall be brought into conformance with the plan. Alternatively, the City can amend the maximum allowed density across the land use category. • Tables II-I, II-M, and II-O must reflect the amended acreage totals for each land use category, the allowed density without discretionary (i.e. PUD) approvals and be consistent with the text descriptions of the land use categories, as applicable. These tables must also be reconciled with each other (i.e. acreages listed in II-O must correspond to those listed II-M). • The labels on the first two land use maps submitted as part of the Comprehensive Plan Amendment appear to be reversed compared to the land use maps present in the attached staff report and comprehensive plan. The labels should be reconciled and the areas that are being reguided should be explicitly identified. After the supplemental information is received and evaluated, if staff finds the plan complete the Council’s review process will be restarted. If you have any questions about the information requested in this letter or about the review process, please feel free to contact the technical reviewers directly. You may also contact the Principal Reviewer, MacKenzie Young-Walters, at 651-602-1373 or via email at MacKenzie.Young- Walterst@metc.state.mn.us. As always, you can also contact your Sector Representative, Emma Dvorak, at 651-602-1373 or via email at Emma.Dvorak@metc.state.mn.us. Sincerely, Angela R. Torres, AICP, Senior Manager Local Planning Assistance CC: Gail Cederberg, Metropolitan Council District No. 11 Emma Dvorak, Sector Representative MacKenzie Young-Walters, Principal Reviewer Reviews Coordinator N:\CommDev\LPA\Communities\Scandia\Letters\Scandia 2024 Density and Zoning Reference CPA Incomplete 21979-9.docx Re: Scandia 2024 Density and Zoning Reference CPA Incomplete 21979-9 TJ Hofer <tj.hofer@bolton-menk.com> Fri 7/12/2024 9:23 AM To: Young-Walters, MacKenzie <Mackenzie.Young-Walters@metc.state.mn.us>; Dvorak, Emma <Emma.Dvorak@metc.state.mn.us> Cc: Kyle Morell <k.morell@ci.scandia.mn.us>; Brenda Eklund <b.eklund@ci.scandia.mn.us> Thanks, MacKenzie. We will discuss and get back to you. During our meeng I think I requested a copy of the staff report from when the 2040 Comp Plan was approved. Can you please send me a PDF of that? Thanks, T.J. Hofer Planner II Bolton & Menk, Inc. Phone: 612-271-6984 www.Bolton-Menk.com Book time to meet with me From: Young-Walters, MacKenzie <Mackenzie.Young-Walters@metc.state.mn.us> Sent: Thursday, July 11, 2024 4:26 PM To: TJ Hofer <tj.hofer@bolton-menk.com>; Dvorak, Emma <Emma.Dvorak@metc.state.mn.us> Cc: Kyle Morell <k.morell@ci.scandia.mn.us>; Brenda Eklund <b.eklund@ci.scandia.mn.us> Subject: RE: Scandia 2024 Density and Zoning Reference CPA Incomplete 21979-9   T.J., The Metropolitan Council's position is that Zoning should be handled at a local level. State law requires the zoning code to be consistent with the comprehensive plan. A zoning code that results in some areas being unable to develop at their land use’s maximum permitted density is common. However, a zoning code that establishes criteria that prevent areas from developing at anything near their permitted density would be vulnerable to challenges under Minn. Stat. § 473.858. A zoning code that said an area was limited to 4 per 40 unless X, Y, and Z were true would not be consistent with the comprehensive plan’s because it would be essentially creating a 4 per 40 zoning for a portion of the city which is incompatible with the Rural Center ’s 1 per 2.5 designation. A zoning code that said that to subdivide a site needed to have X characteristics would be fine, even if in some cases those criteria meant a five-acre property was not able to subdivide into two 2.5 acre lots. Regarding the 4 per 40 questions, it is not a city wide average. For example, if a thousand acres were guided at 4 per 40 the City could not require that the 100 permitted units be placed within a 150-acre section of those 1,000 acres while the other 850 acres were left undeveloped. That being said, mechanisms like transfer of development rights could allow an owner of 80 acres to cluster the 8 units they are permitted on one portion of their property. To further clarify, the City could not use land use guidance to limit a 160-acre area to 1 per 40 and then permit another 40 acres to develop at 1 per 2.5 with the rational that between these two developments it averages out to 4 per 40. 7/12/24, 9:36 AM Mail - TJ Hofer - Outlook https://outlook.office.com/mail/inbox/id/AAMkADFjNzJlYjA5LWIwODgtNGY1Ny1hNjQyLWZmNzY5YjJlMTJkMABGAAAAAABnWVF1sVCLT7CuDtObP…1/5 Please let us know if you have any additional questions. Thanks, -MacKenzie MacKenzie Young-Walters, AICP Pronouns: he/him/his Senior Planner | Local Planning Assistance Community Development P. 651-602-1373 MacKenzie Young-Walters, AICP Pronouns: he/him/his Senior Planner | Local Planning Assistance Community Development P. 651-602-1373 From: TJ Hofer <tj.hofer@bolton-menk.com> Sent: Wednesday, July 10, 2024 2:33 PM To: Young-Walters, MacKenzie <Mackenzie.Young-Walters@metc.state.mn.us>; Dvorak, Emma <Emma.Dvorak@metc.state.mn.us> Cc: Kyle Morell <k.morell@ci.scandia.mn.us>; Brenda Eklund <b.eklund@ci.scandia.mn.us> Subject: [EXTERNAL] Re: Scandia 2024 Density and Zoning Reference CPA Incomplete 21979-9 MacKenzie, Thanks for the follow up. I do have concerns and quesons regarding some of these, but there is one answer I need for Council next week. Within the Rural Center that's allowed a maximum density of 1 dwelling per 2.5 acres, can the City establish zoning standards that only allow development at that maximum density if certain standards are met, assuming the standards are not discreonary? I believe that you said yes to this in the meeng, but I wanted to make sure. It might also be helpful to clarify, does the Met Council consider density at a City wide level or at a 40 acres level such as through quarter-quarter secons? Thank you, T.J. Hofer Planner II Bolton & Menk, Inc. Phone: 612-271-6984 www.Bolton-Menk.com Book time to meet with me From: Young-Walters, MacKenzie <Mackenzie.Young-Walters@metc.state.mn.us> Sent: Wednesday, July 10, 2024 1:28 PM To: TJ Hofer <tj.hofer@bolton-menk.com>; Dvorak, Emma <Emma.Dvorak@metc.state.mn.us> Cc: Kyle Morell <k.morell@ci.scandia.mn.us>; Brenda Eklund <b.eklund@ci.scandia.mn.us> Subject: RE: Scandia 2024 Density and Zoning Reference CPA Incomplete 21979-9 7/12/24, 9:36 AM Mail - TJ Hofer - Outlook https://outlook.office.com/mail/inbox/id/AAMkADFjNzJlYjA5LWIwODgtNGY1Ny1hNjQyLWZmNzY5YjJlMTJkMABGAAAAAABnWVF1sVCLT7CuDtObP…2/5 T.J., I received your voicemail and was pung the final touches on an email that I was draing following up on our June 28th meeng. I am hopeful that these responses will provide some clarity; however, I ancipate that it may make sense to set up a follow-up call to talk through a few of the answers and address anything that I may have missed. Unfortunately, since we are sll in the process of wring the Imagine 2050 Regional Development Guide the answers to some of your quesons about the 2050 Comprehensive Planning Cycle will not be known unl the Metropolitan Council adopts the final RDG in Q1 of 2025. Below I have listed my understanding of your quesons from our last meeng and the answers that we were able to gather. Q: Would a Rural Residenal Community Designaon be possible? A: No, Thive 2040 policy is not to expand the Rural Residenal Community Designaon. It is our strong belief that this policy will be maintained in Imagine 2050. Q: If an area currently guided for 1 unit per 2.5 acres were to be reguided to 4 units per 40 acres, would it be possible to return to the 1 unit per 2.5 acres at some point in the future? A: No, the 2040 Comprehensive Plan permied a legacy development paern that does not strictly speaking conform to the Thrive 2040 Rural Center density range. Any change from the 1 per 2.5 would need to align with the density policy for a Community Designaon (either 4 per 40 for Diversified Rural or 3-5 units per acre for Rural Center) and any subsequent amendment would need to fall into one of those categories. Q: Can Scandia take advantage of the Flexible Residenal Development Ordinance Guidelines (Flexible Development Guidelines) for the Diversified Rural Area? A: Yes, with some caveats. You can use these for the areas of your community guided for Diversified Rural Development; however, the result cannot be incompable with Metropolitan Council Policy. Implemenng these would be a major conversaon between the City and your sector representave. The areas of your community designated as Rural Center would not be eligible for this program. As I menoned, our staff expert on these guidelines is currently on vacaon, but when we she is back it may make sense to set up a meeng with her and your sector representave to talk about what this could look like. In the interest of transparency, it is very likely that the Flexible Development Guidelines will be modified as part of Imagine 2050. We are just beginning those conversaons so I cannot provide any insights on what those changes are likely to be. Q: Can Scandia connue to use density bonuses, for example the City currently allows up to 7 units per 40 acres with open space preservaon. A: It is complicated. It is likely that through a combinaon of the above-menoned Flexible Development Guidelines and amending the comprehensive plan to reflect the maximum density ranges inclusive of density bonuses, some addional density can be granted for the Diversified Rural areas. Exactly how much and under what condions, would depend on how the Flexible Development Guidelines end up being implemented. I will cauon that our manager expressed concern that 7 per 40 would likely not align with the Metropolitan Council’s policies. The big concern on our end is that the permied flexibility is not used to create a Rura Residenal Community Designaon in all but name. Q: How will Imagine 2050 impact the exisng 1 unit per 2.5-acre areas? A: I know that is a huge queson for your community; however, as was menoned earlier, we cannot answer it with any degree of certainty unl Imagine 2050 is adopted. In its current dra from, there is more of an emphasis re-evaluang exisng areas in the light of new policies than was present in Thrive 2040; however, we also understand that there are communies that have unique characteriscs that may sll warrant the recognion of historical development paerns or praccal constraints to meeng new policies. Exactly where the balance on those consideraons ends being struck is currently unknowable. Regarding the City Council meeng on July 16th, I do not believe that we will be able to aend. We would be happy to meet with you either before or aer the meeng to go over staff and the City Council’s quesons. Prior to the meeng our availability is as follows: July 11th: 1-2 p.m. July 12th: 10:30-12:00 p.m., 3:00-4:00 p.m. July 15th: 9:30-11:00 p.m., 3:00-4:30 p.m. Sincerely, -MacKenzie MacKenzie Young-Walters, AICP Pronouns: he/him/his Senior Planner | Local Planning Assistance Community Development P. 651-602-1373 From: TJ Hofer <tj.hofer@bolton-menk.com> Sent: Wednesday, July 10, 2024 11:41 AM 7/12/24, 9:36 AM Mail - TJ Hofer - Outlook https://outlook.office.com/mail/inbox/id/AAMkADFjNzJlYjA5LWIwODgtNGY1Ny1hNjQyLWZmNzY5YjJlMTJkMABGAAAAAABnWVF1sVCLT7CuDtObP…3/5 To: Dvorak, Emma <Emma.Dvorak@metc.state.mn.us>; Young-Walters, MacKenzie <Mackenzie.Young- Walters@metc.state.mn.us> Cc: Kyle Morell <k.morell@ci.scandia.mn.us>; Brenda Eklund <b.eklund@ci.scandia.mn.us> Subject: [EXTERNAL] Re: Scandia 2024 Density and Zoning Reference CPA Incomplete 21979-9   Emma and MacKenzie, We are going to be discussing the incomplete leer, conflicts with Met Council policy, and potenal steps forward at out July 16, 2024, meeng. If either of you are available it may be helpful to have a representave there from the Met Council. We do stream all of our meengs on Zoom, so you would be able to join that way as well. Our meeng starts at 7:00 pm, but I would expect this to be later in the meeng during our staff reports. The agenda will be published at the end of the week and can be found here: hps://weblink.cityofscandia.com/WebLink/Browse.aspx?id=105162&dbid=0&repo=Laserfiche&cr=1 The Zoom informaon is: Join Zoom Meeng hps://us06web.zoom.us/j/97331961888?pwd=b2RFWmdHNXQvazAwcXhudjZtT2tUdz09 Meeng ID: 973 3196 1888 Passcode: 839598 One tap mobile +13017158592,,97331961888#,,,,*839598# US (Washington DC) +13126266799,,97331961888#,,,,*839598# US (Chicago) Dial by your locaon +1 301 715 8592 US (Washington DC) +1 312 626 6799 US (Chicago) +1 929 205 6099 US (New York) +1 253 215 8782 US (Tacoma) +1 346 248 7799 US (Houston) +1 669 900 6833 US (San Jose) Meeng ID: 973 3196 1888 Passcode: 839598 Find your local number: hps://us06web.zoom.us/u/keHhiJUWn Thank you, T.J. Hofer Planner II Bolton & Menk, Inc. Phone: 612-271-6984 www.Bolton-Menk.com Book time to meet with me From: Dingle, Sandi <sandi.dingle@metc.state.mn.us> Sent: Wednesday, July 3, 2024 3:15 PM To: TJ Hofer <tj.hofer@bolton-menk.com> Cc: Cederberg, Gail <Gail.Cederberg@metc.state.mn.us>; Dvorak, Emma <Emma.Dvorak@metc.state.mn.us>; Young-Walters, MacKenzie <Mackenzie.Young-Walters@metc.state.mn.us>; ReviewsCoordinator <ReviewsCoordinator@metc.state.mn.us> Subject: Scandia 2024 Density and Zoning Reference CPA Incomplete 21979-9   The attached letter is being sent to you electronically on 7/3/2024. 7/12/24, 9:36 AM Mail - TJ Hofer - Outlook https://outlook.office.com/mail/inbox/id/AAMkADFjNzJlYjA5LWIwODgtNGY1Ny1hNjQyLWZmNzY5YjJlMTJkMABGAAAAAABnWVF1sVCLT7CuDtObP…4/5   Sandi Dingle Program Technical Specialist | Regional Planning sandi.dingle@metc.state.mn.us P. 651.602.1312 | C. 651.329.0373 390 North Robert Street | St. Paul, MN | 55101 | metrocouncil.org     7/12/24, 9:36 AM Mail - TJ Hofer - Outlook https://outlook.office.com/mail/inbox/id/AAMkADFjNzJlYjA5LWIwODgtNGY1Ny1hNjQyLWZmNzY5YjJlMTJkMABGAAAAAABnWVF1sVCLT7CuDtObP…5/5