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Item 3.3 Condo Suites Otsego PUD District Amendment3601 Thurston Avenue Anoka, MN 55303 763.231.5840 TPC@PlanningCo.com 1 PLANNING REPORT TO: Otsego Planning Commission FROM: D. Daniel Licht REPORT DATE: 14 May 2026 60-DAY DATE: 5 June 2026 RE: Otsego – Condo Suites of Otsego; PUD District Amendment TPC FILE: 101.02 BACKGROUND Boyd Dollansky, LLC received City Council approval on 22 April 2024 for a development to be known as Condo Suites Otsego consisting square feet of multiple tenant office/warehouse space within multiple principal buildings. The industrial development is part of the PUD District approved for Zachman Meadows. The developer is requesting an amendment of the PUD District regarding allowed uses for the individual suites to both increase the range of potential occupancy, as well as allow more uses as permitted uses in order to provide them greater flexibility in marketing the development. A public hearing to consider the application has been noticed for the Planning Commission meeting on 18 May 2026 at 7:00PM. Exhibits: Property Location Map Ordinance 2024-05 (Existing PUD District) Draft PUD Ordinance ANALYSIS City staff has drafted a revised PUD Ordinance that would set forth provisions specific to Condo Suites Otsego. The PUD District remains based on the uses, performance standards, and requirements of the I-2, General Industrial District. Allowance of enthusiast garages, as one of the primary uses intended to occupy the suites is also carried forward to the proposed PUD District. Item 3.3 2 The changes between the existing PUD District and proposed PUD District provisions are that minor auto repair and detailing businesses or physical recreation facilities would be allowed with approval of an Administrative Permit and not by Conditional Use Permit or Interim Use Permit are currently required. Allowance by Administrative Permit would include additional conditions to limit the scope of either use occupying the property:  Minor auto repair and detailing: o An increase setback from 50 feet to 100 feet from any residential use, not only residentially zoned properties. o A limit of two employees. o All vehicles being serviced must be kept within the building at all times.  Physical recreation and training facilities: o Hours of operation are limited to 7:00AM to 10:00PM. o Services are to be provided by reservation or appointment only. o The maximum floor area allowed for such uses is 1,200 square feet or one Tradesman or Classic suite. o Occupancy of the space is to be limited to one person for each 100 square feet of net floor area. o Off-street parking spaces for the use must be designated and comply with the dimension’s requirements of the Zoning Ordinance. The conditions listed for uses allowed by Administrative Permits must be as unambiguous as possible without flexibility. In the event a minor auto repair and detailing use or physical recreation and training facility is proposed that does not meet these requirements, provision is made that the use may still be allowed as established by the I-2 District, either by Conditional Use Permit or Interim Use Permit. The Planning Commission and City Council must take into consideration the possible effects of the proposed revisions of the PUD District, with their judgment to be based upon (but not limited to) the criteria outlined in Section 11-3-2.F of the Zoning Ordinance: 3 1. The proposed action's consistency with the specific policies and provisions of the Otsego Comprehensive Plan. Comment: The allowed uses within the Condo Suites of Otsego development are consistent with the 2023 Comprehensive Plan, including the following policies:  Cluster land complementary uses and activities into functionally related sub-units of the community as determined by physical barriers, homogeneous land use characteristics, and service area boundaries.  Accomplish transitions between different land uses in an orderly manner so as not to create negative impacts on adjoining developments; changes in types of land use shall occur either at mid- block points, so that similar uses front on the same street, or at borders of areas separated by physical barriers.  Define distinct areas for varying types of industrial activities and establish respective standards governing development quality. 2. The proposed use's compatibility with present and future land uses of the area. Comment: The residential uses within Zachman Meadows, Windsong, and Kittredge Crossings are separated from the industrial activities by significant wetland areas. 3. The proposed use's conformity with all performance standards contained within the Zoning Ordinance and other provisions of the City Code. Comment: The proposed development will comply with the requirements of the Zoning Ordinance, Subdivision Ordinance, and City Code including those provisions established as part of the PUD District. 4. Traffic generation of the proposed use in relation to capabilities of streets serving the property. Comment: The property is accessed by existing Minor Arterial and Commercial/Industrial Collector streets that have capacity to accommodate the traffic generated by the proposed development. 5. The proposed use can be accommodated by existing public services and facilities and will not overburden the City's service capacity. 4 Comment: The proposed development is located within the West Sewer District and includes land uses consistent with the Future Land Use Plan. The City has adequate capacity available to serve the proposed development with it being consistent with the Comprehensive Plan. RECOMMENDATION The requested amendment of the PUD District is proposed to allow the developer greater ability to market the suites and manage occupancy and the various uses within the project through the ownership association. City staff offers that the allowance of additional uses by Administrative Permit are sufficiently limited by additional conditions to ensure compatibility and functionality between the buildings and individual uses with the range of possible businesses. POSSIBLE ACTIONS A. Motion to recommend City Council approval of an Ordinance amending the PUD District for Condo Suites Otsego, as presented. B. Motion to recommend that City Council deny the requested PUD District amendment based on a finding that the action would be inconsistent with the policies of the Comprehensive Plan and intent of the Zoning Ordinance. C. Motion to table. c. Adam Flaherty, City Administrator/Finance Director Audra Etzel, City Clerk Ron Wagner, City Engineer David Kendall, City Attorney Property Location Map Condo Suites Otsego 413 ft Overview Legend Highways Interstate State Highway US Highway Roads City/Township Limits c t Parcels Torrens CITY OF OTSEGO COUNTY OF WRIGHT STATE OF MINNESOTA ORDINANCE NO: 2024-05 AN ORDINANCE AMENDING THE ZONING ORDINANCE OF THE CITY OF OTSEGO TO PROVIDE FOR A CHANGE IN ZONING CLASSIFICATION AND ESTABLISHED A PUD, PLANNED UNIT DEVELOPMENT DISTRICT FOR LAND INCLUDED WITHIN THE ZACHMAN MEADOWS PLAT. THE CITY COUNCIL OF THE CITY OF OTSEGO DOES HEREBY ORDAIN: Section 1. The official Zoning Map of the Otsego Zoning Ordinance is hereby amended to change the zoning classification of the property legally as described by Exhibit A. Section 2. The property is hereby rezoned from an A-1, Agricultural Rural Service District designation to PUD, Planned Unit Development District subject to the terms and conditions set forth herein. Section 3. Allowed Uses. The allowed uses within the PUD District shall include the following uses: A. Residential Uses. All permitted uses, permitted accessory uses, conditional uses, interim uses and uses allowed by administrative permit within the 11-6 Medium Density Residential District shall be allowed upon the lots within Block 1 through 9 of the preliminary plat, subject to approval of a PUD Development Stage Plan in accordance with Chapter 36 of the Zoning Ordinance, B. Industrial Uses. All permitted uses, permitted accessory uses, conditional uses, interim uses and uses allowed by administrative permit within the 1-2, General Industrial District shall be allowed on the lots within Blocks 10 through 25 of the preliminary plat, subject to approval of a PUD Development Stage Plan in accordance with Chapter 36 of the Zoning Ordinance, and: 1. Enthusiast Garages: One or more buildings for the primary purpose of recreational storage and social gatherings with uses that include storage of vehicles and recreational vehicles and equipment together with social and entertainment spaces for individuals and groups of people, but not including residential occupancy or business activities. 2. Outdoor Storage: Outdoor storage as a principal and accessory use shall be prohibited. Section 4. Lot Requirements. Lots within the PUD District shall be subject to the minimum lot area, lot width, and setback, and building coverage or impervious surface requirements applicable to the base zoning districts established by Section 3 of this Ordinance except as may be modified by approval of a PUD Development Stage Plan. Section S. Construction Standards. The construction of structures within the PUD District shall conform to minimum requirements set forth by Chapter 17 of the Zoning Ordinance for the base zoning districts established by Section 3 of this Ordinance except as may be modified by approval of a PUD Development Stage Plan. 1 Section U. Amendments. Modification of the allowed uses, performance standards, and lot requirements established by this PUD District or the inclusion of additional lands within this PUD District shall be processed in accordance with Chapter 3 of the Zoning Ordinance, Section 7. Zoning Map. The Zoning Map of the City of Otsego shall not be republished to show the aforesaid rezoning, but the Zoning Administrator shall appropriately mark the Zoning Map on file at City Hall for the purpose of indicating the rezoning hereinabove provided for in this Ordinance, and all of the notations, references and other information shown thereon are hereby incorporated by reference and made part of this Ordinance. Section 8. Effective Date. This Ordinance shall become effective immediately upon its passage and publication according to Law. Remainer of this page intentionally blank) 2 ADOPTED by the Otsego City Council this 22"d day of April, 2024. MOTION BY: Dahl SECONDED BY: Moores INFAVOR:Stockamp, Dahl, Dunlap, and Moores OPPOSED:none CITY OF OTSEGO AW 1 lll Jessica L. Stockarnp, ATTEST: r Audra Etzel'City Clerl< 3 1 CITY OF OTSEGO COUNTY OF WRIGHT STATE OF MINNESOTA ORDINANCE NO: 2024-XX AN ORDINANCE AMENDING THE ZONING ORDINANCE OF THE CITY OF OTSEGO TO PROVIDE FOR A CHANGE IN ZONING CLASSIFICATION AND ESTABLISH A PUD, PLANNED UNIT DEVELOPMENT DISTRICT FOR LAND INCLUDED WITHIN CONDO SUITES OTSEGO DEVELOPMENT. THE CITY COUNCIL OF THE CITY OF OTSEGO DOES HEREBY ORDAIN: Section 1. Property. This Ordinance shall establish the zoning classification, uses, standards, and requirements for the property legally described by Exhibit A. Section 2. Repealed. The provisions of the PUD, Planned Unit Development District established by Ordinance 2024-05 adopted on 22 April 2024 by the City Council applicable to the property are hereby repealed in their entirety. Section 3. PUD District. The property is hereby rezoned to PUD, Planned Unit Development District subject to the terms and conditions set forth by this Ordinance Section 4. Allowed Uses. The allowed uses within the PUD District shall include the following uses: A. I-2 District Uses. All permitted uses, permitted accessory uses, conditional uses, interim uses and uses allowed by administrative permit within the I-2, General Industrial District shall be allowed upon the property as provided for by the Zoning Ordinance, except as modified by Section 3.B and C of this Ordinance and: 1. Enthusiast Garages: One or more buildings for the primary purpose of recreational storage and social gatherings with uses that include storage of vehicles and recreational vehicles and equipment together with social and entertainment spaces for individuals and groups of people, but not including residential occupancy or business activities shall be allowed as a permitted use within the PUD District subject to approval of a PUD Development Stage Plan in accordance with Chapter 36 of the Zoning Ordinance. B. Special Uses. The following special uses shall be allowed upon the subject property subject to compliance with the additional provisions of this Ordinance and approval of an Administrative Permit as provided for by Chapter 8 of the Zoning Ordinance and compliance with this Ordinance: 1. Automobile detailing and minor repair, provided, that: a. The use shall be set back a minimum of one hundred feet (100') from any abutting residential use. b. Hours of operation shall be limited to seven o'clock (7:00) A.M. to ten o'clock (10:00) P.M. unless extended by the City Council. 2 c. Adequate off street parking spaces shall be designated in compliance with Chapters 21 of the Zoning Ordinance. d. There shall be no more than two (2) employees working within the suite at any time. e. All repair activities shall be conducted within the building with overhead doors to the service area(s) closed at all times, except when moving vehicles in and out. f. The emission of odor by a use shall be in compliance with and regulated by the Minnesota Pollution Control Standards, Minnesota regulation APC 7011, as amended. g. All flammable materials, including liquids and rags, shall conform with the applicable provisions of the Minnesota State Fire Code. h. All outside storage is prohibited; vehicles awaiting services, unlicensed, inoperable, damaged vehicles, vehicles being repaired, and vehicle parts and accessory equipment shall be inside a building at all times. i. Uses that do not comply with the conditions established for approval by approval of an administrative permit may be allowed as provided for within the I-2, General Industrial District. 2. Physical recreation or training facilities (indoor); provided, that: a. Hours of operation shall be limited to seven o'clock (7:00) A.M. to ten o'clock (10:00) P.M., unless extended by the City Council with approval of an interim use permit. b. Services shall be provided by reservation or appointment only. c. The maximum area occupied by one business shall be one thousand twelve hundred (1,200) square feet. d. Occupancy shall be limited to one (1) person for each one hundred (100) square feet of net floor space, including employees. e. There shall be no more than two (2) employees working within the suite at any time. f. Adequate off street parking spaces shall be designated in compliance with Chapters 21 of the Zoning Ordinance. g. All signs and information and visual communications devices shall be in compliance with chapter 37 of this title. 3 h. Occupancy shall be subject to and satisfy all applicable requirements of the Building Code, subject to review and approval of the building official. i. Uses that do not comply with the conditions established for approval by approval of an administrative permit may be allowed as provided for within the I-2, General Industrial District. C. Outdoor Storage: Outdoor storage as a principal and accessory use upon the property shall be prohibited. Section 5. Lot Requirements. Lots within the PUD District shall be subject to the minimum lot area, lot width, and setback, and building coverage or impervious surface requirements applicable to the I-2, General Industrial District, except as may be modified by approval of a PUD Development Stage Plan. Section 6. Construction Standards. The construction of structures within the PUD District shall conform to minimum requirements set forth by Chapter 17 of the Zoning Ordinance for buildings within the I-2, General Industrial District except as may be modified by approval of a PUD Development Stage Plan. Section 7. Amendments. Modification of the allowed uses, performance standards, and lot requirements established by this PUD District or the inclusion of additional lands within this PUD District shall be processed in accordance with Chapter 3 of the Zoning Ordinance. Section 8. Zoning Map. The Zoning Map of the City of Otsego shall not be republished to show the aforesaid rezoning, but the Zoning Administrator shall appropriately mark the Zoning Map on file at City Hall for the purpose of indicating the rezoning hereinabove provided for in this Ordinance, and all of the notations, references and other information shown thereon are hereby incorporated by reference and made part of this Ordinance. Section 9. Effective Date. This Ordinance shall become effective immediately upon its passage and publication according to Law. (Remainer of this page intentionally blank) 4 ADOPTED by the Otsego City Council this _______day of ________, 2026. MOTION BY: SECONDED BY: IN FAVOR: OPPOSED: CITY OF OTSEGO __________________________________ Jessica L. Stockamp, Mayor ATTEST: __________________________________ Audra Etzel, City Clerk