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03-12-13KALISPELL CITY PLANNING BOARD & ZONING COMMISSION MINUTES OF REGULAR MEETING MARCH 12, 2013 CALL TO ORDER AND The regular meeting of the Kalispell City Planning Board and ROLL CALL Zoning Commission was called ,to order at 7:00 p.m. Board members present were: Chad Graham, Phillip Guiffrida, Rory Young, Charles Pesola, Richard Griffin and Matt Regier. Ken Hannah was absent. Tom Jentz, Sean Conrad and P.J. Sorensen represented the Kalispell Planning Department. There were 16 people in the audience. APPROVAL OF MINUTES Guiffrida moved and Pesola seconded a motion to approve the minutes of the February 12, 2013 meeting of the Kalispell City Planning Board and Zoning Commission. VOTE BY ACCLAMATION The motion passed unanimously on a vote by acclamation. PUBLIC COMMENT No one wished to speak. GARDNER INVESTMENTS/ A request from Gardner Investments LLC for a planned unit VOLKSWAGEN development (PUD) zoning overlay approval for two tracts of land DEALERSHIP PLANNED located at the southeast corner of the intersection of Highway 93 UNIT DEVELOPMENT South and Willow Glen Drive. The PUD is requesting approval to develop both tracts of land to accommodate an auto dealership on one tract of land and either an additional auto dealership or similar supporting business on the second tract of land. Both tracts of land are currently undeveloped. STAFF REPORT KPUD-13-01 Sean Conrad, representing the City of Kalispell reviewed Staff Report KPUD-13-01 for the board. Conrad said this is a PUD request for two pieces of property on Highway 93 South and were part of an 82 .acre annexation approved in November 2008 which runs from Lower Valley Road south to Snowline Lane. There were several buildings on the properties but the majority of it was undeveloped at the time of annexation. When the city council approved the annexation request they zoned the property B-5 which is an industrial business zoning district and also put a PUD placeholder on the entire 82 acres. The PUD Placeholder ensures that when development came in for either all of the 82 acres or portions of it the planning board and city council would have a chance to review the development looking at the integrity of the development, access points and make sure it was done in a manner that reflects the rest of the city. Kalispell City Planning Board Minutes of the meeting of March 12, 2013 Page 1 of 11 Conrad continued the PUD includes 2 existing lots of approximately 7.6 acres, the northern lot would be the site of a future Volkswagen dealership and the southern lot would be possibly another dealership or a similar type use. Conrad reviewed the proposed site layout for the board and noted the area along Lower Valley Road and Highway 93 South would be landscaped and eventually a bike path that would continue south as the other lots/tracts develop. The two lot PUD request included a preliminary sketch that would include a regional storm water facility. Staff noted an existing radio station encumbered an extensive amount of the site to the south. Conrad noted there is a recommended condition of approval that states prior to further development beyond this two lot PUD the property owners will come back and give the city a better idea of how the remainder of the property would be developed including frontage roads and connecting streets, storm water facilities, water and sewer lines, etc. Conrad noted after the staff report was sent to the developer they had a question on condition #5 and asked for clarification on the exact property that was referred to as "the land under the B- 5/PUD" and that it not be tied to further development of the two lots under this PUD. Staff is therefore recommending the following amendment to the first paragraph of Condition #5: "Prior to further development on land under- +,.,;s B 5 /DT D shown on figure 2 the owner(s) shall submit a detailed PUD layout plan for the area that addresses the following:" Staff recommends that the Kalispell Planning Board adopt Staff Report KPUD-13-01 as findings of fact and recommend to the Kalispell City Council that the PUD overlay zoning district be approved subject to the 20 conditions, as amended, listed in the staff report. BOARD DISCUSSION Rory Young asked for clarification on compatible uses for the adjacent property and Conrad said when he talked with APEC they were looking at another auto dealership. Compatible uses could possibly be a car wash, oil change business, retail businesses or office space that would complement the VW dealership. Conrad said the B-5 zoning district allows a wide variety of land uses — anything from gas stations and truck terminals to bakeries and banks, and everything in between. The uses could also be expanded as recommended by the planning board and discussion with the developer. The city does not have a definition of compatible uses. Kalispell City Planning Board Minutes of the meeting of March 12, 2013 Page 2 of 11 Guiffrida noted the very lengthy document that was presented by Montana Venture Partners, LLC to the board this evening and asked if staff had an opportunity to look over the document and Jentz said he has reviewed the document. Graham asked if staff could clarify what private property would the street trees be required under condition #8 and Conrad said the property where the Volkswagen dealership would be located. Conrad added the reason that the parks department wanted that note placed on that condition is because they didn't know the ultimate design of Lower Valley Road and how wide the boulevard might be and if the boulevard was too narrow and with traffic and snow removal the tree might not survive. PUBLIC HEARING Ken Kalvig, an attorney said he is representing Montana Venture Partners. His address is 1830 3Td Avenue East in Kalispell. He thanked the city staff for their assistance in preparing for tonight's meeting. Kalvig said they hope the planning board reads the packet and considers the information which is mandated by Montana Law. He noted Montana Venture Partners, LLC, are the developers of the Old School Station project south of Kalispell. Kalvig said they are interested in quality development especially along the Highway 93 South corridor and he added the city's growth policy calls for quality development in Kalispell and for planned unit developments on larger projects. Kalvig continued they want to know what the plans are for sewer and water service to this site and the larger Gardner 80+ acre PUD and how it will join to Kalispell's existing infrastructure. Montana Venture Partners has a vested financial interest in this issue. Kalvig said the PUD process requires an applicant to include its plans for .many aspects of the development including sewer and water and that information needs to be included with the application for public review and scrutiny. This information was not provided in the application materials. Kalvig said there have been discussions between the applicant and the city regarding a regional wastewater lift system that would redirect wastewater away from the infrastructure that Old School Station put into Highway 93 but there aren't any firm plans at this time. Kalvig continued when they hear there isn't an overall concept plan for this development because of the radio station and towers on the property it begs the question why is there discussion about a regional wastewater lift station when thinking about servicing a larger area. The PUD process is the time when those ideas should be on the table for public review and discussion. Kalispell City Planning Board Minutes of the meeting of March 12, 2013 Page 3 of 11 Kalvig went through a power point presentation including Montana Venture Partners and the Highway 93 South sewer and water extensions that were completed a few years ago. (A copy of the slide presentation is attached to these minutes). Kalvig made the following points: • Sewer and water lines were upsized, extended, and financed by Montana Venture Partners in order for Old School Station to be annexed into the city. • Morrison & Maierle conducted a needs study for capacity not only for the Old School Station project but for future development of surrounding properties to determine the size of the line. The report indicated that the service area was approximately 3000 feet on either side of Highway 93 South which included the Gardner property on the northern boundary and the Old School Station property along the southern boundary. • The city's 2008 Highway 93 South Corridor Growth Policy Amendment map includes nearly the same properties that were included in the service area map. In addition the growth policy indicated the recent extension of water and sewer along Highway 93 South is available to serve all lands within the growth policy amendment area. • City of Kalispell Developer Extension (Latecomer Agreement) brochure references the city's agreement with Montana Venture Partners for water and' sanitary sewer improvements and noting the general area is south of Cemetery Road. • City staff reports for the Gardner and Siderius annexations and PUD placeholders indicated that these properties are in the area intended to be served by the Old School Station water and sewer lines. • Kalvig reviewed the location of the Gardner and Siderius properties within the service area and noted if the idea that a regional wastewater lift station would be constructed to service the balance of the Gardner'property it would result in the non-payment of latecomer fees being paid to Montana Venture Partners and he added hopefully the same plan would not be proposed for the west side of the highway. • Kalvig provided an overview of the properties in the service area which includes the PUD areas, already developed areas, city property and floodplain. He said when you look at the balance of the map the property left that could develop and use their services it doesn't paint a very pretty picture for Montana Venture Partners who fronted the cost of extending the sewer and water. Kalispell City Planning Board Minutes of the meeting of March 12, 2013 Page 4 of 11 Kalvig reviewed the type of plans that are required to be submitted with the PUD application with a timeline. He noted the applicant addressed these requirements by citing the city regulations and Kalvig said that is not what the PUD regulations say — more is required. Kalvig added that the changes that took place with the Kalispell Zoning Regulations and the establishment of the PUD Placeholder doesn't set up a scenario where you can do a PUD on 80 acres and come in and say we have a vision for 10% of it and here it is — that is not the way it was intended to work. Kalvig referred to a letter from Bruce Lutz of Sitescape Associates that states in part he is pleased to see this project happen and he welcomes good development but he is troubled by what he has seen in this application, how it is being handled by the city and how this sets a different precedent for how things have been done in the past. Kalvig said if the city approves this application it will lower the bar for processing PUD's and if the precedent is set and the standards are lowered, every other developer will expect the same treatment. Kalvig reviewed the staff report and noted staff is responsibly requiring more information prior to the issuance of a building permit that will address traffic, landscaping, park requirements and a trail system, storm water, sewer and water. However, Kalvig concluded, that information needs to be submitted with the application not after the public process is closed. Andrew J. Miller, 175 East Many Lakes Drive, Kalispell said he was a partner with Paul Wachholtz when they came before the planning board and council with the Old School Station development. They built a first class business park and wanted to drive business up to Kalispell and bring growth, jobs, and opportunity to this community. Miller had to walk away from the development but he said this is a great project that shouldn't be in this situation. When they sat down with the city they decided to upsize all the utilities because they felt there would be growth on the south side of Kalispell, industrial/technology growth. They put state of the art technology, infrastructure and fiber optics into this development and they can make it happen with the help of the city. Miller added doing what is right is what integrity stands for. Paul Wachholtz, 183 Fairway Boulevard, P.O. Box 1477, Kalispell stated he is a member of Montana Venture Partners (MVP) who developed Old School Station Industrial Park. MVP wants to see development and quality growth in Kalispell because it is good for the city and MVP who has a vested interest in what happens south Kalispell City Planning Board Minutes of the meeting of March 12, 2013 Page 5 of 11 of Kalispell - $4 million dollars in latecomers fees plus a loan secured by Glacier Bank whose interest is to make sure that MVP's agreement with the City of Kalispell is as good as the paper it is written on. Wachholtz said the PUD zoning process ensures quality development and the people involved in this development are quality people. Old School Station was developed and oversized because of the demands of the City of Kalispell. Wachholtz described the infrastructure that was put in by MVP and noted they oversized the infrastructure from Old School Station all the way to the Four Corners intersection because the city knew there would be development in the future. In their latecomers agreement they are allowed to be reimbursed for the cost of up -sizing and when latecomer fees are paid the city gets a small percentage of that fee (6%) and the rest, in this case is shipped to Glacier Bank and the remaining money goes to his loan. When the private section invests money into these extensions and the city said that they would be reimbursed for them, that is what is expected. Wachholtz said it is not where you hook into the services but what land is annexed into the city system. It might be cheaper to go around and not pay latecomer fees but that is not what the agreement indicates. Wachholtz concluded the plans for the sewer and water needed to be submitted in the PUD process for MVP to review. He is not against the Gardners or DePratu Ford/Volkswagen but he feels MVP deserves the latecomer fees which they were promised. Kim Larson, 1234 McMannamy Draw said he is representing APEC Engineering located at I II Legend Trail, Kalispell. Larson said he is only speaking to the two parcel PUD which is before the board. Larson noted they have reviewed the staff report and conditions of approval and they have the following comments: Under Item F.2 — Control Over Vehicle Traffic There is a recommendation from Public Works that as part of the two parcel PUD that they need to take a look at the entire overall PUD in relation to Lower Valley Road, that would include the additional 55 acres, and determine the improvements required to Lower Valley Road based on anticipated development and traffic volumes. The developer is only looking at these two parcels not the overall PUD at this time and they are not sure what will happen with further development. They would expect to continue the curb and gutter along the south edge of Lower Valley Road to the end of the property and they would include bike paths and work with the city as far as landscaping, etc. Larson said they don't feel that they Kalispell City Planning Board Minutes of the meeting of March 12, 2013 Page 6 of 11 should have to widen Lower Valley Road to 34 feet, collector road standards. Condition #2 — restricting the uses on Parcel A and Tract 2 Larson said the owners are questioning the restriction of the uses on these parcels to auto dealerships, professional office or commercial use complementary to an auto dealership because they don't know what businesses will eventually want to be located on this property. Condition #5 has already been addressed by staff Condition #10 relates to the discussion under item F.2 above Larson restated they are currently looking at the Volkswagen dealership and the lot to the south and at this point it seems excessive to require the traffic study and change the entire route for what is probably a minimal amount of additional use. Condition #14 — requires an analysis on the need for a regional lift station upon development of Tract 2. Larson said at this point the owners are only looking at the two lots to develop. There are radio towers and other issues on the remainder of the property but the reality is that Tract 2 can be served by existing sewer by gravity feed to the north — without having to worry about a regional lift station so why should they be required to submit an analysis when they don't need the regional lift station at this point. Marc Liechti, owner of APEC Engineering, 111 Legend Trail, Kalispell stated they have not had a chance to review the submittal given to the board by Ken Kalvig's office but they would like the opportunity to review this infonnation. At this point there is a two lot PUD in front of the board and what will happen in the future they don't know. Liechti asked planning staff to address some of the concerns that were raised by Mr. Kalvig. Jeff Brown, 230 Hartt Hill Drive, Kalispell stated he is partners with Bob DePratu on the Glacier Volkswagen venture and he just wants to build the building and sell cars. This has to be a business that can make a reasonable profit and they can bring a lot to the City of Kalispell as they did with the Toyota dealership. They have to do it in a timely manner and affordably and with the economy the way it is at some point they may have to decide this isn't worth it. This is a great opportunity for the south side of Kalispell. Howard Mann, 3154 Parkwood Lane, Bigfork said he is very concerned because he also has a latecomer agreement and was asked to oversize the infrastructure to the north at a huge expense. He can't imagine that the city would allow a development to Kalispell City Planning Board Minutes of the meeting of March 12, 2013 Page 7 of 11 circumvent the very reason they were asked to put in the oversized infrastructure in the first place. He too has a reimbursement area and when you take a portion of that area out the chances of recouping up -front costs is in jeopardy. Todd Gardner, 3065 Airport Road, Kalispell stated he is the owner of most of this property. Gardner noted they proposed the PUD to be developed in phases and thankfully they did because they didn't know what was coming and they could have gone broke. They are trying to develop it in a quality manner as there is some demand for the lots but they don't know what size lots will be needed in the future so they would like to leave it open. Gardner said they are just talking about the two corner lots right now and there is water and sewer already available at this corner. There has been a lot of talk about the latecomer fees and that we are trying to go around MVP but we are in fact currently in discussions with them about future development. Gardner Auction Service, Rock City and Janitor's World were all developed with water and sewer from the MVP lines at a cost of over $100,000 in latecomer fees to MVP. Davar Gardner, 3095 Airport Road, Kalispell stated the things being discussed have no bearing on the two lot PUD. He has had the highest regard for Andy and Paul over the years and has done everything possible to help them market Old School Station and he even maintained the vacant property for them. Gardner said because the MVP sewer runs down one side of the highway and water down the other it isn't cost effective to service his property but he feels it will be eventually be worked out. MOTION Guiffrida moved and Young seconded a motion that the Kalispell Planning Board adopt Staff Report KPUD-13-01 as findings of fact and recommend to the Kalispell City Council that the PUD overlay zoning district be approved subject to the 20 conditions listed in the staff report. BOARD DISCUSSION Guiffrida wondered if these discussions fall under the scope of the planning board. Guiffrida asked when dealing with a PUD how often do they have final engineering at the board or council level and Jentz said when the PUD is submitted the city requires preliminary plans and our goal is to determine if a property can be served not to approve the final engineering. When the approval is in hand it is the time to expend the money necessary to complete the design work for the sewer system. Kalispell City Planning Board Minutes of the meeting of March 12, 2013 Page 8 of 11 Guiffrida noted the packet was given to them right before the meeting and he can't make a decision until he has had a chance to review all this material. Guiffrida asked if staff had a chance to review the materials and Jentz said he read it he can go over the 15 sections and provide the board with the highlights at this time. Guiffrida said it is the board's responsibility to read through everything that is presented to them. The work session a month ago would have been the more appropriate time to receive the materials and there was plenty of notice given to the public to comment. Guiffrida said he would entertain a motion to table the PUD which would also allow APEC engineering to review the material. Griffin said he agrees with most of Guiffrida's remarks. His concern is how much pertains to the PUD and how much pertains to the latecomer fees which will fall into the PUD when the sewer plan is submitted. He hasn't had a chance to read through it either and he can't make a decision on it tonight. Young said he welcomes Guiffrida's suggestion to table the PUD until they have had a chance to review what is in the materials. He asked staff if they have had a chance to discuss these issues with the city attorney to determine the legal ramifications of the latecomers agreement and whether the board can consider the PUD and allow the legal team to settle the sewer issues. Jentz said there are two pieces of original information in the packets including Ken Kalvig's letter were he says that MVP spent $4 million dollars to bring the system in and Kalvig's second point where he states the PUD itself is flawed in staffs review and presentation. Jentz said there are all sizes and shapes of PUDs from 460 acres with a 700,000 sq. ft. shopping center to PUDs that are three pages long and dealt with setbacks and a height issue. This PUD is not a subdivision the lots exist and there is a water and sewer main out in front of the property. It is zoned commercial, and for all practical purposes meets almost all of standards of a B-5 zone. When we talked about what the design would look like staff suggested like the Toyota dealership. The board is asked as part of the PUD process to review an overall plan for sewer and water and the two lot PUD has water and sewer out front and it can be fully developed with those lines. However if the developer proposes something different that will be worked out through the agreement that is in place and through Public Work's review of those standards. Jentz continued the board needs to consider the information that was presented but their role in this process is not necessarily the arbitrator of an agreement but to ensure that sewer, water, storm Kalispell City Planning Board Minutes of the meeting of March 12, 2013 Page 9 of 11 water, streets can be provided and that the landscaping and design aspects are suitable. Jentz added the board could add a condition that would prohibit redundant sewer lines in this area. The second original piece of information is the letter from Bruce Lutz of Sitescape Associates who discusses what he feels is a lack of pertinent landscaping information. Jentz suggested if the board continues this discussion he would recommend two weeks. Charles Pesola said he would also like to reiterate that the materials could have been presented prior to tonight and he agrees it should be tabled. MOTION TO TABLE Guiffrida moved and Pesola seconded a motion to table the Gardner PUD until March 26, 2013. ROLL CALL The motion passed unanimously on a roll call vote. OLD BUSINESS: . Jentz asked the board if there are any questions that they want staff to address to help the board make a better decision prior to the March 26th meeting. Griffin said would appreciate clarifications on where the board's authority lies as far as the latecomers agreement and to what extent do the property owners have an option to look at alternative application of sewer and water service. Guiffrida agreed with Griffin and asked staff to take a look at section F. under Public Services — water and sewer because it touches on the board's jurisdiction. NEW BUSINESS: Conrad mentioned staff is still drafting up sections of the growth policy as part of an update based on public comment they received from the public outreach that was conducted last year. They plan to go back to the public and have work sessions in the coming months then an update will presented to the board. ADJOURNMENT The meeting adjourned at approximately 8:30 p.m. NEXT SPECIAL MEETING The special meeting will be held on March 26, 2013 beginning at 7:00 p.m. in the City of Kalispell Council Chambers located at 201 lst Avenue East in Kalispell. NEXT REGULAR MEETING The next regular meeting is scheduled for April 9, 2013 beginning at 7:00 p.m. in the City of Kalispell Council Chambers located at 201 1"Avenue East in Kalispell. Kalispell City Planning Board Minutes of the meeting of March 12, 2013 Page 10 of 11 NEXT WORK SESSION I The next work session has not been scheduled. President APPROVED as submitted/corrected: 3 / 4 /13 4icA helle Anderson Recording Secretary Kalispell City Planning Board Minutes of the meeting of March 12, 2013 Page 11 of 11