9.j Discussion on EDA request to initiate change to development code
Staff Report
Date of Meeting: February 20, 2018
To: City Council
From: Neil Soltis, Administrator
Re: Zoning in the Village Mixed Use B district
Background: There have been inquiries from realtor / developers regarding the closing of
Chikos restaurant and the potential to sell the building separately from the office rental
building. Under Chapter 2 of the Development Code the minimum lot size in the Village Mixed
Use-B zoning district is 2.5 acres and the property is 2.5 acres. The concerns that have been
voiced are that leasing the building is a disincentive for the owner to make long-term
investments in the interior and exterior of the property and the leasehold does not provide any
sort of security interest that can be used financing improvements.
The issue was discussed at the February Economic Development Authority meeting and the
EDA Board recommended that the City Council initiate a request that the Planning Commission
look at options that would permit separate ownership of buildings located on a common parcel
The Development Code provides that either the City Council or Planning Commission may
initiate a request to amend the Development Code.
Minnesota Statutes The state of Minnesota permits condominium ownership as an option.
Commercial Planned Unit Developments are a conditional use in the Industrial District that
abuts this property.
Issue: Should the Council initiate a request that the Planning Commission consider options to
allow separate ownership in the commercial districts of the City.
Fiscal Impact: Staff / contractual time for preparation of materials for discussion of the
changes and preparation of any resulting ordinance.
Options:
1. Initiate a request that the Planning Commission consider options for separate
ownership of buildings on a common parcel.
2. Take no action
Recommendation: Option 1