PLANNING REPORT CITY OF EAGAN. APPLICANT: Cedar Grove Hospitality, LLC HEARING DATE: December 18, 2014

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1 PLANNING REPORT CITY OF EAGAN REPORT DATE: December 8, 2014 CASE: 19-PA APPLICANT: Cedar Grove Hospitality, LLC HEARING DATE: PROPERTY OWNER: The Flats at Cedar APPLICATION DATE: Nov. 21, 2014 Grove, LLC REQUEST: Planned Development Amendment PREPARED BY: Pamela Dudziak LOCATION: 3825 Cedar Grove Parkway COMPREHENSIVE PLAN: SA/MU, Special Area/Mixed Use ZONING: PD, Planned Development SUMMARY OF REQUEST The applicant is requesting approval of a Planned Development Amendment to add an outdoor dining patio and associated Site Plan modifications and on-sale liquor in conjunction with a fullservice restaurant to be located in The Flats at Cedar Grove, 3825 Cedar Grove Parkway. AUTHORITY FOR REVIEW Chapter 11, Section 11.50, Subdivision 5 states, in part, 1. The provisions of this chapter may be amended by the majority vote of the council, except that amendments changing the boundaries of any district or changing the regulations of any district may only be made by an affirmative vote of two-thirds of all members of the council. 2. The Council shall not rezone any land or area in any zoning district or make any other proposed amendment to this chapter without first having referred it to the advisory planning commission for its consideration and recommendation. BACKGROUND/HISTORY The site is located within the core area of the Cedar Grove Redevelopment area. A Planned Development for The Flats at Cedar Grove was approved in The development consists of a four-story, 190-unit apartment building with underground and surface parking, and 11,000 s.f. of commercial retail on the ground level.

2 Page 2 The PD Agreement stipulated that of the 11,000 sf of commercial retail space, restaurant uses occupy no more than 4,000 s.f. In addition, the initial PD Agreement did not include approval of on-sale liquor, a use which is considered conditional in the City s zoning ordinance. Outdoor patio dining also was not part of the original Planned Development. Patios in excess of 24 seats, within 200 of residential uses, or those associated with an establishment involving on-sale liquor are considered a conditional use in the zoning ordinance. Specific approval through the Planned Development zoning serves in lieu of a Conditional Use Permit for uses considered conditional in commercial zoning districts. EXISTING CONDITIONS The Flats at Cedar Grove is currently under construction. Access to the site is from Nicols Road to the north and Cedar Grove Parkway to the south. The northerly driveway access is shared with Jensen s Food & Cocktails to the west. The commercial retail area is located on the northwest end of the building. SURROUNDING USES The following existing uses, zoning, and comprehensive guide plan designations surround the subject property: Existing Use Zoning Land Use Designation North Office/commercial PD, Planned Development Special Area: BP, Business Park IND, Limited Industrial East McDonald s Restaurant; Keystone Communities; Lincoln Place South Vacant; Woodhaven Park West Jensen s Food & Cocktails; Cedarvale Lanes/Fitz s EVALUATION OF REQUEST CGD, Cedar Grove District; PD, Planned Development CGD, Cedar Grove District; P, Park CGD, Cedar Grove District Special Area: RC, Retail Commercial HD, High Density Special Area: MD, Medium Density P, Park Special Area: MU, Mixed Use Proposal A prospective restaurant tenant for The Flats at Cedar Grove would like to develop a full-service restaurant, with on-sale liquor and an outdoor dining patio. The tenant will occupy the northwest corner of the commercial retail space, a total of 4,129 g.s.f., which exceeds the 4,000 s.f. limit placed on restaurant uses in this Planned Development.

3 Page 3 The proposed patio is located off the northwest corner of the building. The patio displaces some parking, and the added patio seating requires additional parking stalls, resulting in a net increase in the amount of required parking per City Code. Compatibility with Surrounding Area This Planned Development specifically anticipated mixed uses with residential and commercial in the same building. Restaurant uses were contemplated in the initial Planned Development, although a specific restaurant or types of eating establishments were not yet identified. With residents in the building above, consideration should be given to compatibility of the proposed on-sale liquor and outdoor patio uses in proximity to the residential uses above. The applicant intends the restaurant and outdoor patio to be a great addition to this revitalized Cedar Grove and the restaurant and its outdoor seating will add to the visual interest, walkability and dynamics of the... Paragon Outlet Mall. The narrative further states ample parking on site will allow for plenty of visitors and promote the area as a destination. City Code Requirements Where allowed in commercial zoning districts, on-sale liquor in conjunction with a full-service restaurant is a conditional use. The City Code also allows outdoor dining in conjunction with restaurants. A Conditional Use Permit or Planned Development Amendment is required where the outdoor dining area is within 200 feet of residential property, where on-sale liquor is involved, or where more than 24 seats are proposed. In regard to conditional uses, City Code Chapter 11, Section 11.50, Subdivisions 4C and 4D provide the following general standards: Subdivision 4C states that the Planning Commission shall recommend a conditional use permit and the Council shall issue such conditional use permits only if it finds that such use at the proposed location: 1. Will not be detrimental to or endanger the public health, safety, or general welfare of the neighborhood or the City. 2. Will be harmonious with the general and applicable specific objectives of the Comprehensive Plan and City Code provisions 3. Will be designed, constructed, operated and maintained so as to be compatible in appearance with the existing or intended character of the general vicinity and will not change the essential character of that area, nor substantially diminish or impair property values within the neighborhood. 4. Will be served adequately by essential public facilities and services, including streets, police and fire protection, drainage structures, refuse disposal, water and sewer systems and schools.

4 Page 4 5. Will not involve uses, activities, processes, materials, equipment and conditions of operation that will be hazardous or detrimental to any persons, property or the general welfare because of excessive production of traffic, noise, smoke, fumes, glare or odors. 6. Will have vehicular ingress and egress to the property which does not create traffic congestion or interfere with traffic on surrounding public streets. 7. Will not result in the destruction, loss or damage of a natural, scenic or historic feature of major importance. 8. Is appropriate after considering whether the property is in compliance with the City Code. Subdivision 4D, Conditions, states that in reviewing applications of conditional use permits, the Planning Commission and the Council may attach whatever reasonable conditions they deem necessary to mitigate anticipated adverse impacts associated with these uses, to protect the value of other property within the district, and to achieve the goals and objectives of the Comprehensive Plan. In all cases in which conditional uses are granted, the Council shall require such evidence and guarantees as it may deem necessary as proof that the conditions stipulated in connection therewith are being and will be complied with. City Code Section 11.70, Subdivision 29, establishes the performance standards and requirements for outdoor dining areas. These are listed and discussed later in this report. Size of Restaurant The Planned Development limited restaurant uses to a maximum of 4,000 s.f. The proposed size of the restaurant is 4,129 g.s.f., which is approximately 38% of the designated commercial space approved. The limitation on restaurant size in the PD Agreement was intended to encourage a mix of complimentary retail users and manage parking demand. Parking for restaurants (other than fast food) is based on the number of seats rather than the square footage. It was unknown at the time if restaurant uses would be a single large user such as this, or several smaller users such as coffee, sandwich or ice cream shops. Because the proposed full-service restaurant utilizes the maximum allowed area, other food establishments would not be permitted. Site Plan The proposed restaurant is located in the northwest corner of the building, with the patio adjacent. Replacement of displaced parking stalls was accomplished administratively within City Code standards; however, a net reduction in parking of five (5) stalls exists with the additional patio seating. Other modifications to the Site Plan include adding the railing to enclose the patio area and connect it to the principal building. In review of the Site Plan, it is noted that the public trail along Nicols Road is not located entirely within the right-of-way. The trail is located partially within the lot. The applicant should provide a public trail easement, in a form acceptable to the City Attorney, for the area of the trail that is located outside the public right -of-way and within the lot.

5 Page 5 Patio Plan/Elevations/Signage The patio is proposed to have a trellis, planters, lighting, gas heaters and fans. These would line the outer edge of the patio and separate it from the parking lot. The patio seating plan shows 13 tables of four seats, and three tables of two seats, for a total of 58 seats. The table layout will be further evaluated at the time of Building Permit for compliance with applicable standards for aisle width and accessibility. Allowable building signage is defined in the PD Agreement. All signage shall be subject to compliance with the PD Agreement and City Sign Code, to be determined at the time of Sign Permit application. On-Sale Liquor Where allowed, on-sale liquor is a conditional use. While there are no specific performance standards for on-sale liquor in the City Code, the general Conditional Use standards listed above apply. In addition, the liquor licensing regulations in City Code Chapter 5 do require licensed premises to meet the special use setback (200 ) from certain protected uses such as daycares, churches and schools. The subject site meets this distance requirement. Outdoor Patio Dining In addition to the general Conditional Use standards, outdoor dining areas are subject to the following performance standards: 1. No portion of the outdoor dining area shall be located or occur within any public rightof-way, include the sidewalks/trails, boulevard areas or streets. The outdoor dining area is not located within any public right-of-way. 2. The outdoor dining area shall meet the following setbacks requirements: 20 feet from a public right-of-way, five (5) feet from side lot line, and five (5) feet from rear lot line. These required setbacks are satisfied. 3. The outdoor dining area shall not interfere with any pedestrian traffic or walkways intended for the general public. A minimum 4 feet wide area shall remain clear for pedestrian traffic on walkways and for entry into the restaurant building and adjacent uses. An outdoor dining area shall not be permitted to be located in or occupy any parking or other areas intended for vehicular traffic. There is an existing sidewalk along the building. Because of the on-sale liquor, the patio area must be fenced for controlled access, and access to the patio must be from within the restaurant. As a result, the sidewalk is blocked at the corner, such that pedestrian movement around the corner of the building is not possible. The required 4 sidewalk is otherwise maintained.

6 Page 6 4. The outdoor dining area shall be handicap accessible and not restrict accessibility in other areas inside or outside the restaurant. A Building Permit is required prior to the installation of the patio and accessibility will be verified at that time. 5. The outdoor dining area shall be used subordinate to the principal restaurant building. The proposed patio area is approximately 20 x 35 and is smaller than the indoor restaurant space. 6. The outdoor dining area shall be kept in a clean and orderly manner. No food or beverages may be stored outdoors, unless a suitable means for such storage has been reviewed and approved by the City. Compliance with this standard will be a condition of approval. 7. The hours of operation of an outdoor dining area shall be restricted to the hours of operation within the principal restaurant s interior space. Notwithstanding the foregoing, the operation of business within an outdoor dining area shall not occur between the hours of 1:00 a.m. and 7:00 a.m. If an outdoor dining area is subject to a conditional use permit or a planned development approval, the city council may be more restrictive in the hours of operation based upon the proximity of the area to residential dwelling units and upon consideration relating to the public health, safety, and welfare of residents, businesses, and other uses near the restaurant establishment. The proposed patio is located within the same building as residential uses above. The zoning ordinance referencing the special use setback does not contemplate such mixed use buildings, but rather a horizontal separation between uses in different buildings and on different properties. City Code restricts hours of operation of any retail business or restaurant to between 7:00 a.m. and 1:00 a.m. if the use does not meet the special use setback from residential. Through the Planned Development and due to the proximity of residential uses in this case, hours of operation of the outdoor dining patio may be further restricted than what is in the ordinance. The hours of operation of the outdoor dining area should be restricted to the hours of operation within the principal restaurant s interior space, and in no case should the outdoor dining patio be utilized after 11:00 p.m. If an outdoor sound system is utilized, City Code states it shall not be operated in a manner in which it is plainly audible at a distance of 50 feet or more, and shall not be used after 10:00 p.m. without a permit. The nearest residential property is directly above the proposed restaurant, and within 50 of the outdoor dining patio. For this reason, staff suggests that use of any outdoor sound system be prohibited.

7 Page 7 8. A fence, constructed of color and material suitable for the intended use, surrounding the outdoor dining area shall be required if the outdoor dining area provides seating for 24 or more persons or alcoholic beverages are served within the outdoor dining area. If a fence is required, a fencing plan shall be submitted with the site plan for the outdoor dining area for review and approval by the City. A decorative fence in combination with brick piers is proposed to enclose the patio area. The patio has direct access to and from the building with the fence enclosing the building doors to control access to the patio. Gates will be provided in the fence at both ends of the patio. Service of alcoholic beverages outdoors requires the area to be enclosed, with direct access to the patio only from inside the building. The plans show the patio access directly to and from the building. The gates in the surrounding fence should be for exiting only. The fence connecting the patio to the principal building does block the free movement around the corner of the building. If the patio is not being utilized in the winter months, the fence design should be such that it can be removed during the winter to allow for free passage along the sidewalk around that corner of the building. 9. If alcoholic beverages are served in the outdoor dining area, the restaurant establishment shall have an on-sale alcohol license that specifically includes and permits the sale or service of alcoholic beverages in the outdoor dining area. All regulations in Chapter 5 of the Code shall apply and compliance shall be met. The liquor license is a separate administrative application to be obtained by the operator of the restaurant. Issuance of the license requires zoning approval of the on-sale use for the property. 10. The outdoor dining area must conform to all Fire and Building Codes related to the number and types of exits that are required. A Building Permit will be required prior to installation of the patio and fireplaces. Compliance with exiting requirements and other Building and Fire Codes will be verified at that time. 11. The parking regulations related to minimum required spaces for the restaurant establishment, plus one (1) stall for every twelve (12) seats within the outdoor dining area of more than 24 seats, as set forth in this Chapter shall apply and compliance met. The submitted plans show 58 outdoor patio seats. At one stall for each 12 outdoor seats, the 58-seat patio requires an additional five (5) parking stalls. The patio displaced four (4) parking stalls, which have been replaced elsewhere on the site, and was accomplished within City Code standards (setbacks, stall dimensions, green space, etc.). No additional parking stalls are proposed. Thus, the proposed outdoor patio results in a net reduction of

8 Page 8 five (5) parking stalls required as compared to the number provided, and the applicant is requesting approval of this parking deviation. The Planned Development was approved with 53 parking stalls allocated to the 11,000 s.f. commercial retail space. The remaining stalls on-site serve the residential portion of the project, which was approved with 22 stalls fewer than the City Code requirement. In total, a deviation of 23 stalls was approved through the Planned Development, and the applicant is now requesting further deviation of five (5) stalls. City Code requires that residential parking be specifically reserved for use of residents and visitors only, and cannot be counted as part of any shared parking or joint parking arrangement. While some visitors to the Cedar Grove area may park once and visit multiple establishments, each site in the area should provide for its own off-street parking to avoid overflow onto other properties, into streets or in fire lanes. On-street parking is not allowed along Nicols Road. The acceptability of the net reduction in on-site offstreet parking is a policy matter to be determined by City officials. 12. All sewer availability charges imposed as a result of additional seating in the outdoor dining area shall be paid prior to the operation of any business within the outdoor dining area. The applicant is responsible for submitting the proposal to the Metropolitan Council for a determination of any additional SAC (sewer availability charge) units. Payment of any associated SAC fees shall be made before the patio is opened for use. SUMMARY/CONCLUSION The applicant is requesting a Planned Development Amendment to allow an outdoor patio and on-sale liquor in conjunction with a full-service restaurant, a restaurant exceeding 4,000 s.f., and associated modifications to the Site Plan. The existing PD Agreement limits restaurant uses to a maximum of 4,000 s.f. The proposed restaurant occupies approximately 38% of the 11,000 s.f. commercial space, or 4,129 g.s.f. The applicant is requesting approval for the additional square footage because it follows the demised spaces within the building. Because the proposed restaurant utilizes the maximum allowed area, other food establishments would not be permitted. The project is a mixed use development, with residential units in a 4-story building above 11,000 s.f. of commercial retail space. This type of mixed use presents unique considerations for compatibility. The City Code typically considers on-sale liquor and outdoor dining of more than 24 seats or involving on-sale liquor as conditional uses. The proposal appears to satisfy most of the performance standards in the City Code for outdoor dining patios with the exception of pedestrian sidewalk access around the commercial space and parking, for which a deviation is requested. Staff has suggested conditions of approval related to noise and use of outdoor sound systems, hours of operation, and use of a removable fence so they sidewalk can be fully opened during the winter months. The acceptability of the proposed use and suggested conditions is a policy matter for City officials.

9 Page 9 ACTION TO BE CONSIDERED To recommend approval of a Planned Development Amendment to add an outdoor dining patio and associated site plan modifications, and on-sale liquor in conjunction with a full-service restaurant, and a restaurant exceeding 4,000 s.f, upon property located at 3825 Cedar Grove Parkway. If approved the following conditions shall apply: 1. A Planned Development Amendment Agreement shall be executed and recorded against the property at the Dakota County Recorder s Office. The following exhibits are required for the Agreement: a. Site Plan b. Patio Plan 2. The applicant shall provide a public trail easement, in a form acceptable to the City Attorney, for the area of the trail that is located outside the public right -of-way and within the lot. 3. The outdoor dining patio shall provide outdoor seating of not more than 58 seats as shown on the Site Plan. 4. A detail of the patio railing shall be provided for the Planned Development Amendment Agreement. 5. A Building Permit is required prior to installation of the fence and gates to ensure compliance with applicable building and fire codes. 6. The operation of the outdoor dining area shall be subject to compliance with the standards in the City Code. 7. The hours of operation of the outdoor dining area should be restricted to the hours of operation within the principal restaurant s interior space, and in no case should the outdoor dining patio be utilized after 11:00 p.m. 8. Any use of an outdoor sound system shall be subject to City Code standards, including that it shall not be used after 10:00 p.m. 9. The fence design shall be such that it can be removed during the winter to allow for free passage along the sidewalk around that corner of the building. 10. The applicant shall submit the proposal to the Metropolitan Council for a determination of any additional SAC (sewer availability charge) units. Payment of any associated SAC fees shall be made before the patio is opened for use.