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2019-02-04 City Council Agenda Packet-Crossing Church A,lbert'vill .1ex . Mayor and Council Request for Action January 29, 2019 SUBJECT: PLANNING-PUD AMENDMENT ALLOWING FOR HOSPITALITY BUSINESSES TO BE INCLUDED AS AN ACCEPTED LAND USE WITHIN THE EXHIBIT 7 OF THE OUTLETS OF ALBERTVILLE PUD AGREEMENT) AND THE INTRODUCTION OF THE CROSSING CHURCH AS A TENANT ON LOT 1, BLOCK 1 OF THE OUTLETS AT ALBERTVILLE SECOND ADDITION RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following motions: MOTION TO: Adopt Resolution Number 2019-005 entitled a Resolution Approving A PUD Amendment to Exhibit 7 of The Outlets at Albertville Second Addition Planned Unit Development Agreement and The Introduction of The Crossing Church on Lot 1 Block 1 Outlets of Albertville Second Addition Located Within the City of Albertville BACKGROUND: The Planning and Zoning Commission met and held a public hearing on January 8, 2019 to consider PUD Amendment requests of The Crossing Church. The City of Albertville was approached by The Crossing Church and the Outlets of Albertville to discuss allowing the church to lease two commercial tenant bays in the Outlets of Albertville Second Addition (The Promenade Mall east of County Road 19). Currently, the list of allowed land uses for this PUD does not include any commercial assembly uses such as conference centers, banquet halls, theaters, etc. As such, churches are not allowed within the PUD. In order to accommodate the church's request, the term "Hospitality Business" must be added within the PUD Agreement. Upon review of the staff report and hearing public testimony, the Planning Commission recommended that the City Council approve the PUD Amendment to Exhibit 7 for Lot 1, Block 1 in the Outlets at Albertville Second Addition, allowing for "Hospitality Businesses" to be added to the list of allowed uses and approval of the introduction of The Crossing Church based on the narrative and plans dated December 18, 2018 and subject to the conditions outlined in the planning report. At the January 14, 2019 meeting the City Council met to consider this application. While supportive of some limited expansion of land use in the Outlet Mall Promenade; they expressed some concerns with adding Hospitality Business into the PUD that was designed for retail uses. The Council's concern related to number, size, traffic and parking of Hospitality Businesses and their relationship to other businesses in the Outlet Mall. Meeting Date: February 4„2019 Agenda Page 19 Mayor and Council Request for Action - February 4, 2019 Outlets of Albertville PUD Amendment Page 2 of 3 KEY ISSUES: • The introduction of Hospitality Businesses to the PUD agreement will expand the range of commercial uses within the Outlet Promenade. This will give the property owner greater flexibility in attracting tenants to this part of the mall. The council is concerned that without proper regulations on the number or size of a Hospitality Businesses in this area the use may overwhelm the site and other business moving the promenade away from the original retail intent. • The City Council is supportive of the PUD amendment, with regulations that address the number, size and duration of Hospitality Businesses in the Outlets Promenade to provide a balance between the retail and hospitality business and to insure proper functioning of the overall site. • The proposed PUD amendment will allow Hospitality Businesses as an Interim Use with regulations that limit the number, size and duration of these uses on Lot 1, Block 1 Outlets of Albertville Second Addition. These regulations will be applicable to any future Hospitality Businesses interested in coming into the Outlets Promenade. As an interim use with conditions the City can work with the Hospitality business to resolve land use or operation issues to insure that the use is compatible with the balance of the mall tenants and surrounding land uses. • The PUD Amendment will apply only to the Promenade because the western malls are governed by a separate PUD agreement with its own list of allowed uses. In this respect, the requested amendment is geographically limited. • The Hospitality Businesses allow for commercial assembly land uses (i.e. conference centers, banquet halls) under RLUAIPA, these assembly uses would also permit a church. • The church wishes to lease two existing tenant bays. They offer Sunday services, Sunday kids' ministry, Wednesday night group meetings and periodically fellowship groups and bible studies. . • The introduction of the church to the Promenade Mall will change the building use from a retail use to an assembly use. The building will require a building and fire code review to outline the building modifications required to accommodate this change in building occupancy. Building permits shall be obtained for building modifications. POLICY CONSIDERATIONS: In accordance with State Law, public notice was published, and a public hearing was held by the Planning Commission for the PUD Amendment. The Commission recommended that the City Council approve of the Amendment to the PUD Agreement. FINANCIAL CONSIDERATIONS: There are no significant financial issues related to the PUD Amendment. P:ACity Council\Council Packet Information\2019\020419\Albertville RCA Crossing Church Feb 4.docx Meeting Date: February 4.2019 Agenda Page 20 Mayor and Council Request for Action - February 4, 2019 Outlets of Albertville PUD Amendment Page 3 of 3 LEGAL CONSIDERATIONS: In accordance with Council procedures, the Mayor and Council have the authority to approve or deny the PUD Amendment, which requires a majority vote of the City Council and becomes effective upon publication. Respectfully submitted: Alan Brixius, City Planner Department/Responsible Person: Planning/Alan Brixius, City Planner Attachments: Resolution No. 2019-005 Planning Report dated January 3, 2019 P:ACity Council\Council Packet Information\2019\020419\Albertville RCA Crossing Church Feb 4.docx Meeting Date: February 4.2019 Agenda Page 21 CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO. 2019-005 RESOLUTION APPROVING A PUD AMENDMENT TO EXHIBIT 7 OF THE OUTLETS AT ALBERTVILLE SECOND ADDITION PLANNED UNIT DEVELOPMENT AGREEMENT AND THE INTRODUCTION OF THE CROSSING CHURCH ON LOT 1 BLOCK 1 OUTLETS OF ABERTVILLE SECOND ADDITION LOCATED WITHIN THE CITY OF ALBERTVILLE WHEREAS, The Crossing Church and Outlets of Albertville have made application to the City to amend the Outlets of Albertville 2nd Addition Planned Unit Development Agreement list of allowed uses within the Promenade portion of the Outlet Mall to include "Hospitality Businesses" to expand the range of uses for this portion of the Outlet Mall and to allow for a Church tenant under the Federal Religious Land Use And Institutionalized Persons Act (RLUAIPA); and WHEREAS, City Staff has reviewed the requested PUD Amendment and prepared a planning report dated January 3, 2019; and WHEREAS, the Albertville Planning and Zoning Commission met and he and a public hearing on January 8, 2019, to consider the PUD Amendment; and WHEREAS, upon considering the PUD Amendment, the January 3, 2019 planning report, and public testimony the Planning Commission closed the public hearing and recommended that the City Council approve the PUD Amendment on a vote of 5 to 0 with conditions of the January 3, 2019 planning report as amended by the Planning Commission; and WHEREAS, the Albertville City Council met on January 22, 2019 to consider the PUD Amendment and raised concerns with the Amendment with regard to the introduction of Hospitality Businesses to the Outlets Promenade without limits on number, size or duration of said uses within this site. Council continued consideration of the PUD Amendment to the February 4, 2019 with direction to City Staff to prepare PUD Amendment language that will regulate the number, size and duration of Hospitality Businesses in the Outlets Promenade. WHEREAS, the Albertville City Council has received The Crossing Church's application materials including staff review documents and the Planning Commission recommendation. The City Council has also received the City Staff language regulating Hospitality Businesses in the Outlets Promenade as an Interim Use with conditions regulating number, size and duration of hospitality uses at Lot 1, Block 1, Outlets at Albertville 2nd Addition. Agenda Page 22 City of Albertville,MN Resolution No. 2019-005 2/4/2019 Page 2 NOW, THEREFORE BE IT RESOLVED that the City Council of Albertville, Minnesota hereby: 1. Approves the PUD Amendment to add Hospitality Businesses as an interim use to the list of allowed uses on Exhibit 7 of the Outlets of Albertville 2nd Addition Planned Unit Development Agreement as an acceptable land use for Lot 1, Block 1 of the Outlets at Albertville Second Addition with the following language: 33. Hospitality Businesses are permitted as an Interim Use within the Lot 1, Block 1, and Outlets of Albertville Second Addition Planned Unit Development with the following conditions: 1. Number: No more than two (2) Hospitality Businesses shall be located within Lot 1, Block 1 Outlets of Albertville Second Addition. 2. Size: Individual Hospitality Businesses shall be limited to a maximum occupancy of two hundred (200) people at a single event. 3. Hospitality Businesses shall obtain building permits and Certificate of Occupancy for building modifications needed to change the building occupancy from retail to assembly. 4. The siting of the Hospitality Business with in the Outlets Promenade shall demonstrate appropriate required parking and traffic patterns that do not interfere with Outlet Mall operations or negatively impact surrounding land uses. 5. The term of the Hospitality Businesses interim use shall be limited to three (3) years from the date of Certificate of Occupancy. Said use may be renewed upon request of the applicant and approval of the City Council. 2. The Crossing Church is approved as an Interim use within the Lot 1, Block 1, and Outlets of Albertville Second Addition per the plans and Church narrative dated December 18, 2018 subject to the following conditions: 1. The applicant obtains building permits and certificates of occupancy for building modifications needed to accommodate the change of building occupancy from retail to assembly. 2. The Church congregation shall exit the site via the Outlet Mall's signalized curb cut south of the Outlet Mall building. 3. The interim use must operate within the conditions of approval. If operation present issues for parking, traffic congestion or interferes with the general operations of the balance of the Outlet Mall Promenade the Interim use will not be renew. Agenda Page 23 City of Albertville,MN Resolution No. 2019-005 2/4/2019 Page 3 Adopted by the Albertville City Council this 4th day of February, 2019. Jillian Hendrickson, Mayor Attest: Kimberly A. Hodena, City Clerk Agenda Page 24