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7.b i) Report on Ordinance 196 amending the Development Code Memorandum To: Scandia City Council Reference: VMU B Zoning District Zoning Amendment Copies To: Neil Soltis, City Administrator Brenda Eklund, City Clerk Project No.: 16623.000 From: Sherri Buss, RLA AICP, Planner Routing: Date: April 9, 2018 The City’s EDA and the City Council requested that the Planning Commission review the uses and lot standards in the VMU B Zoning District. The EDA and Council requested that the Planning Commission consider whether there are options that would allow businesses in the VMU B District to have an ownership position that would give them more independence and site control, and support economic growth in the Village area, and to consider if zoning changes are needed to permit the options. Some options for discussion that could give businesses more options or flexibility include:  Commercial condominium ownership  PUDs  Changes to the VMU B District—change in district boundaries, uses, smaller lot sizes or other changes to the standards for the VMU B The Commission reviewed these options and recommended the following at its March meeting:  Commercial condominiums are a good option. No City ordinance or regulation changes are needed to accommodate this option.  PUD’s are also a good option – The Commission recommended that the Development Code be updated to include PUD’s as a use that is permitted with a CUP in the VMU A and VMU B zoning districts. The Planning Commission held a public hearing on the proposed amendment to add PUD’s as a permitted use with a CUP in the VMU A and B Districts at their meeting on April 3.  Changes to the VMU B Zoning District to permit smaller lot sizes --The Commission requested that the EDA review the option to permit smaller lot sizes in all or part of the VMU-B District if community septic systems and shared parking or other parking options made this feasible. The EDA’s discussion and recommendation, with approaches for the PC to consider are discussed in the next sections. VMU District Amendment to Code Page 2 April 17, 2018 Scandia Planning Commission EDA Discussion and Recommendations for the VMU B District The EDA Board discussed the Planning Commission request that the Board provide input on potential changes to the lot sizes in the Village Mixed Use – B zoning district.  The EDA Board noted that commercial condominiums are currently an option  The EDA Board was supportive of the change that would allow for planned unit developments to be added as a conditional use in the VMU-B zoning district.  The EDA Board discussed the issues related to changes in the minimum lot size noted that a change may be appropriate if the lot was served by a centralized sanitary sewer system, and that the update of the comprehensive plan should provide for areas that could permits smaller lots. The Board recommended that given the condominium and PUD options no changes to lot size are needed at this time. Chris Eng from the County CDA was at the meeting, and noted that he has received a number of inquiries regarding locations for places for 3-5,000 square-foot commercial buildings. These don’t make sense on 2.5 acres parcels unless a developer is proposing a commercial condominium or PUD. Planning Commission Public Hearing and Recommendations The Planning Commission held a public hearing on the proposed ordinance amendment at their meeting on April 3. The Commission received no verbal or written comments on the amendment.  The Commission recommended that the City Council approve the amendment to the Development Code to permit PUDs as a conditional use in the VMU A and VMU B districts (attached), and  The Commission recommended adding an Action Step in the 2040 Comprehensive Plan to review the Zoning Ordinance and Zoning Map and update them to include areas for smaller lot sizes or other new dimensional standards for the VMU B District to support economic development.