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Planning Board Minutes - April 8, 2014KALISPELL CITY PLANNING BOARD & ZONING COMMISSION MINUTES OF REGULAR MEETING APRIL 8, 2014 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, Ken Hannah, Charles Pesola, Richard Griffm, Rory Young and Steve Lorch. Matt Regier was absent. Tom Jentz, Kevin LeClair and P.J. Sorensen represented the Kalispell Planning Department. APPROVAL OF MINUTES Pesola moved Griffin and seconded a motion to approve the minutes of the March 11, 2014 meeting of the Kalispell City Planning Board and Zoning Commission. VOTE BY ACCLAMATION The motion passed unanimously on a vote by acclamation. PUBLIC COMMENT None. A RAY OF HOPE A request from "A Ray of Hope" a not -for -profit organization for a CONDITIONAL USE PERMIT conditional use permit in order to construct a homeless shelter to accommodate up to approximately 15 women and children at any time. The property is located at 106 5th Avenue West and contains an existing single-family residence. If the CUP is approved the existing will be demolished to make way for the new structure. STAFF REPORT KA-14-01 Kevin LeClair, representing the Kalispell Planning Office reviewed Staff report KCU-14-01 for the board. LeClair reviewed the location of the property and the surrounding zoning for the board. He displayed a rendering of what the shelter may look like when completed and conceptual elevation drawings. The Architectural Review Committee felt the renderings were consistent with the architecture in the neighborhood and would fit in well provided some small changes are done so the structure would fit better on the site. The lot is a standard size for a Kalispell Original Townsite property. The property lies within a transitional zone of the more intense commercial development to the north, the Core Area, to the west side residential neighborhood to the south. LeClair reviewed the surrounding uses noting this property is adjacent to the existing Ray of Hope shelter and their thrift store. The house currently on -site is in an advanced state of dilapidation and the proposal is to remove the home to make way for a new shelter. Kalispell City Planning Board Minutes of the meeting of April 8, 2014 Page 1 of 10 Staff recommends that the Kalispell Planning Board adopt staff report KCU-14-01 as findings of fact and recommend to the Kalispell City Council that the conditional use permit be approved subject to the seven conditions listed in the staff report. BOARD DISCUSSION Griffin was concerned the proposed structure would be encroaching on the setbacks and LeClair noted the side setbacks are 5 feet in this zoning district and there will probably be some modifications. LeClair briefly reviewed other comments made by the Architectural Review Committee. Griffin asked for the off-street parking requirements for an RA-2 zone and LeClair noted the use of the property determines the parking requirements and where a single family structure requires two parking spaces the proposal for the shelter is to remove the garage and provide 5 parking spaces in the rear yard. The rationale for 5 spaces would provide some parking but also provides green space for the residents. Griffin referenced the letter from Rick Hull requesting a higher fence between the properties and LeClair noted a 6 %2 foot fence is the maximum height unless you are in the front yard setback and then it drops down to 4 feet. It is up the owners to decide the height. Hannah asked if the 50% lot coverage for this zone includes the parking area and LeClair said that is just structural coverage. Young asked how staff determines which items from the zoning ordinance to highlight for conditions of approval and LeClair said conditions are included is a communication tool to the applicant, especially if they are not professional developers, to help them understand the steps in the process that need to met before approval can be granted. Young said they then understand that although these are the conditions that are highlighted they are not necessarily the only conditions that apply and LeClair said yes. Griffm added also mentioned in Mr. Hull's letter is the existing building on this property is currently listed on the National Register of Historic Places and he asked how that will be addressed. LeClair said he contacted the State Historic Preservation office and asked what our obligations are. They responded because there are no federal dollars or permitting associated with this building there is no obligation to report or notify any other agencies of the use of the property. There is also no prohibition upon the removal of the structure just because it is on the national register. They did say they would appreciate it if we notified them if the structure is removed. Kalispell City Planning Board Minutes of the meeting of April 8, 2014 Page 2 of 10 Graham said a certain state of disrepair on a project, even though it is on the register, may not be restored to its prior glory and moving the house to a different location may not be viable either. LeClair agreed and added looking at the current state of the structure the cost to benefit of trying to save it or move it would certainly be high. PUBLIC HEARING Cindy Dickens, 133 6 Avenue West stated she lives right up the alley from the Ray of Hope and she isn't happy about this. As it is now they have all kinds of traffic coming up and down the alley, on foot, in vehicles, and they have had several break-ins in the neighborhood. The thrift store's donations used to be set out back and currently they are using the garage for the donations which has cleaned up the area a bit. If this becomes a homeless shelter and the garage is removed once again the donations will end up in the alley which attracts more people because they are digging through the donations. Dickens noted there have been some instances of attempted break-ins and added she is missing stuff from her house. She thinks it is a great thing to provide a shelter for homeless people but it would nice if they could relocate it or at least take the money and upgrade the thrift store and the current shelter building. Gary Phelps, the general contractor on the project noted the issues brought up by Ms. Dickens have been included in conversations with the designer and the Ray of Hope staff and supporters. As far as the thrift store and the Ray of Hope in general they have had a lot of discussions about the need for clean-up with the present operations and the new facility and how that all will be handled. Phelps suggested the board add a condition or require that the administrators submit a plan on how they will address these issues. Phelps continued as far as the break-ins and theft there is theft, or the potential for theft, in any neighborhood and he certainly wouldn't want to accuse anyone from the Ray of Hope for this type of behavior. MOTION Pesola moved Hannah seconded a motion to adopt staff report KCU-14-01 as findings of fact and recommend to the Kalispell City Council that the conditional use permit be approved subject to the seven conditions listed in the staff report. BOARD DISCUSSION Hannah said this is a good project and a rehabilitation of this property. A Ray of Hope is doing what they can to keep the architectural elements fitting with the character of the neighborhood. It is a permitted use of the property with the conditional use permit and it fits in with the mission of A Ray of Hope. Hannah supports the motion. Kalispell City Planning Board Minutes of the meeting of April 8, 2014 Page 3 of 10 Griffin asked if this property will then be removed from the tax rolls and LeClair said they are a 501 C3 non-profit agency and they can apply for a tax exempt status. Lorch said he supports the use of this property due to its location in this transition area between residential and more intensive residential and commercial uses. Lorch suggested requiring a privacy fence between the subject properties as requested by Mr. Hull. MOTION TO ADD Lorch moved and Griffin seconded a motion that would require the CONDITION owner of the property install a 6 foot privacy fence between the subject property and the property to the south. ROLL CALL — MOTION TO ( The motion passed on a roil call vote of 5 in favor and 1 opposed. ADD CONDITON BOARD DISCUSSION Lorch addressed the relationship between the thrift store and this property. If they plan to remove the garage the thrift store should be encouraged to respect their neighbors' concerns and do a good in taking care of the donations so it doesn't become an attractant and a nuisance. Chris Trussell, Trustee of A Ray of Hope said the garage was alleviating the issues with people leaving donations outside. He added they have now built an annex in the back of the building and are filtering the donations from the garage into the back of the thrift store. Graham asked if there would be space on the other property for a small garage/storage building and Trussell said that is a possibility. Trussell added in regard to parking a lot of the people living in the shelters do not drive so there shouldn't be a big impact on parking in the area. LeClair said it was just pointed out to him that in the zoning ordinance there is a category for shelters, public and private, that requires one parking space per 5 occupants so the 5 parking spaces is within the boundaries of the requirements. That would allow for three spaces for residents and two spaces for staff. Griffin asked if a conditional use stays with the property and LeClair said yes, it does. LeClair explained further. The board discussed options for containing the thrift store donations that would require donations be placed out of public view within 24 hours of drop off. LeClair noted conditions can only be placed on the property being reviewed for the conditional use permit and not another property. Further discussion was held. Kalispell City Planning Board Minutes of the meeting of April 8, 2014 Page 4 of 10 Trussell said they want to be good neighbors and it has gotten better and knowing the garage will be removed they have already made adjustments for where the donations will be stored. Trussell added the guidelines are when items show up outside it goes inside, period. ROLL CALL — ORIGINAL The motion, as amended, passed unanimously on a roll call vote. MOTION FCEDA ANNEXATION AND A request from the Flathead County Economic Authority (FCEDA) INITIAL ZONING for annexation and initial zoning of 40.32 acres from County (Industrial) to City I-2 (Heavy Industrial). The applicant intends to develop the site as a rail industrial park and utilize city services. The properties are located east of Whitefish Stage Road and West of East Oregon Street, northeast of the city limits of Kalispell. STAFF REPORT KA-14-02 Kevin LeClair, representing the Kalispell Planning Office reviewed Staff report KA-14-02 for the board. LeClair reviewed the location of the property and surrounding city and county zoning. The growth policy identifies this property as industrial and the I-2 Heavy Industrial zoning designation, which is the zoning requested by the applicant, would be consistent with the growth policy. LeClair reviewed the cost of services analysis that was provided to the board in their packets. Initial costs of adding the public right- of-way would be a cost burden to the city to have to own and maintain those roads and with no real tax revenue expected there would be a slight cost to the city upon annexation. At a 50% build - out scenario the revenue goes up markedly while the cost of service is low; and then at 100% build -out the costs go up slightly while the net revenue increases considerably. Staff recommends that the Kalispell Planning Board adopt staff report KA-14-02 as findings of fact and recommend to the Kalispell City Council that the property be annexed and the initial zoning for this property upon annexation be I-2, Heavy Industrial. BOARD DISCUSSION Young said it doesn't appear that the property is contiguous with the city limits and LeClair said the city has the ability to annex any property as long as it is within the growth policy boundary and it does not have to be contiguous. Jentz reviewed the different methods of annexation for the board. Young noted the map provided by staff for the properties to be annexed is different from the map provided by KLJ and LeClair Kalispell City Planning Board Minutes of the meeting of April 8, 2014 Page 5 of 10 said the exhibit that was provided included a portion of Whitefish Stage Road and East Oregon Street. According to the county the taking in of those roads allows the city to bring them up to city standards upon development. Young added so the 3400 lineal feet of road that appears in the cost of services analysis is the total of those roads which would then make this property contiguous and LeClair said yes. Griffin noted industrial sites have a tendency to not make good neighbors and he asked if the city has ordinances in place that control air, dust, noise, smells, etc. that could potentially impact the neighbors. LeClair said there are certain things in place such as hours of operation but for the most part in an industrial zone those are the kind of impacts that are expected to happen. Jentz said there isn't a regulatory structure that addresses those impacts and he noted this property has been zoned as a heavy industrial site for about 75 years. The health department does have regulations regarding dust that can be addressed but it really comes down to being a good neighbor. Jentz added the targeted uses must be specifically rail orientated and not necessarily associated with manufacturing and processing but more shipping, collection, and repackaging. Griffin pointed out differences in the maps being displayed and the ones that were sent out in the packets. LeClair explained the difference between the R-5 and R-4 zones. (Staff note: The maps have been reviewed and corrected for the packets that will be forwarded to the city council.) Lorch stated that he works for the Montana Department of Natural Resources and Conservation and their agency is an adjoining landowner to this site. Lorch said he does not stand to gain either personally or financially in regard to the development of this site but wanted to let the public know. The board asked a few questions of Lorch and no board member objected to his participation in these discussions or vote. Lorch asked if there were any adjoining landowners who contacted staff regarding this annexation. LeClair said there have been some conversations with a neighbor located north of Oregon Street who had concerns about the development into an industrial park and staff encouraged them to come to the meeting or put their concerns in writing so they can be addressed. DNRC, DEQ and MDT have also submitted letters. LeClair noted access to and from the rail park is proposed along Montclair out to U.S. Highway 2 so all of the truck traffic would be exiting to the east and out to Highway 2 to a conceptually planned signalized intersection. No truck traffic would be coming into the City of Kalispell from this site. Kalispell City Planning Board Minutes of the meeting of April 8, 2014 Page 6 of 10 Lorch asked if there is any riparian frontage toward the west end of this property and at what point in the development process would any of the standards apply to protect the integrity of the river corridor and consider fixture pedestrian access. LeClair said at the bridge along Whitefish Stage Road there is triangular portion of the property that goes out over the river so yes, there is some riparian frontage on the property. In early discussions of that area it would be set aside as a common area tract but it is undevelopable land because it is north of the access road that comes into the property from Whitefish Stage Road. Jentz noted an environmental assessment was completed in anticipation of working with FCEDA for Federal funding of the project and they contacted the U.S. Fish & Wildlife Service and Montana Fish, Wildlife and Parks and described the use proposed for this area. Those agencies thought the use would be appropriate and they see no impacts. This discussion will again be held during the preliminary plat review. Hannah said providing cost of services analysis using multiple stages of the project is very helpful. Hannah noted Section 4 is a loss of about $5000 upon annexation and asked if that is attributed to the acquisition of East Oregon Street and a part of Whitefish Stage Road. Hannah also asked will the loss exist every year until build -out occurs and LeClair said yes and added it is a theoretical loss because we have cooperative maintenance agreements with Flathead County where we maintain certain roads that are theirs and they maintain certain roads that belong to the city. It adds to our inventory but we would work out a cooperative maintenance agreement with the county. LeClair reviewed where the figures come from for the cost of services analysis that is provided to the board. There was further discussion regarding tax revenue lost from businesses moving out of the downtown area; reclamation of those sites for redevelopment; increase in property values; and taxes, if any generated from the rail line. Hannah said it appears there will be approximately 20 lots platted and he asked if the developer/city staff knows how many of those lots will be consumed by Cenex and LeClair said no. Jentz noted when looking at industrial land you are looking at the total square footage so if there were 20 small users or six large users the impact would be the same. We encouraged the developer to look at a larger number of lots so that as developers or builders come in they can build to suit the particular business. Jentz explained further. LeClair said the land is currently bare and practically unusable and a significant amount of development has to take place on the site Kalispell City Planning Board Minutes of the meeting of April 8, 2014 Page 7 of 10 before tenant one can even move in and that will increase the value of that property significantly. PUBLIC HEARING Willy Loop, Northwest Truck Repair stated his big concern is why would the city need industrial zoning and what the cost will be to run the utilities to this property. The water main will have to come down Oregon Street which means they will have to rip that street up and it will impact his customers. Also there is no guarantee that there will be a bunch of people moving into the industrial park. How long will it take to get that revenue back into the city? Jennifer Jeffrey stated she works at Northwest Truck Repair and asked how many years will it take for 50% build -out; she thinks it is premature to annex the industrial park when there are no businesses to move there; and why the city would spend all this money to improve the property with no guarantees. Jentz said the city doesn't spend the money to put in the improvements the developer will be paying for the cost of those improvements. Jentz reminded the public that they are currently only addressing annexation of the property which is the first step of many. The details of the preliminary plat will be discussed by the planning board in a few weeks. Jeffrey asked if Evergreen sewer and water is available and Jentz said they do not have the capacity to serve that site and that is why they are requesting annexation into the city. Kellie Danielson stated she lives at 12 Wheatgrass Lane and works at Montana West Economic Development which is the management arm for the Flathead County Economic Development Authority. She has visited with Mr. Loop several times and they would be happy to continue to answer any questions and share the information with them. Northwest Truck Repair is a very viable business that is greatly needed in this valley and FCEDA wants to be good neighbors. Danielson said they have worked extremely hard on this project for the last couple of years and the tax value will increase because the companies that will move into the park will spend beyond what their current facilities and infrastructure is at value right now. In addition the plan is then to improve the properties that will be left behind from those relocating companies and make them very valuable to developers out in the marketplace. Turner Askew, FCEDA Board Chairman reviewed the value of moving the properties from the downtown core area to the rail park. He said they plan to spend a lot of money, trying to get all the financial help they can get to make it work. It is an urban renewal project and there may be some inconveniences but that Kalispell City Planning Board Minutes of the meeting of April 8, 2014 Page 8 of 10 happens and they will work around that to make it work for everybody. MOTION Hannah moved and Lorch seconded a motion to adopt staff report KA-14-02 as findings of fact and recommend to the Kalispell City Council that the property be annexed and the initial zoning for this property upon annexation be I-2, Heavy Industrial. BOARD DISCUSSION Hannah stated he knows this property will generate revenue when completed and his questions were intended to let the tax payers of the City of Kalispell know that the board is doing their judicious review of the property and making sure that it will not be a drain on the city. Hannah supports the annexation of the rail park and he thinks it will be wonderful addition to the City of Kalispell and he added it is needed for the Core Area project downtown to even start moving. Graham said he agrees with Hannah and when he sees the cost for services to maintain the current roads he knows it is on a sliding scale and won't be a yearly cost. Graham wholeheartedly supports this project. He sees the potential of removing the tracks and moving the businesses that use the tracks and opening up the area to new business opportunities. The planning department has put a lot of work into the Core Area redevelopment and the wheels are finally starting to turn. ROLL CALL The motion passed unanimously on a roll call vote. OLD BUSINESS: Jentz reminded the board members who plan to reapply for their board seat to get their letter in to the City Clerk's office. Young asked for an update on the West Side Parking SID/Flathead High School parking issues and LeClair said the last conversations that he had with the neighbors is they took a hiatus during the winter and he is setting up a meeting for next week for the core committee to reconnect on progress with the intent of putting together an agenda for a neighborhood -wide meeting the first or second week in May. Then a proposal will be submitted to the planning board for review and a recommendation to the city council. NEW BUSINESS: Jentz noted there will be a special meeting on April 22nd to discuss the general site plan for the rail industrial park and hold the public hearing on the preliminary plat. ADJOURNMENT The meeting adjourned at approximately 8:25 p.m. WORK SESSION A work session was held immediately following the regular Kalispell City Planning Board Minutes of the meeting of April 8, 2014 Page 9 of 10 meeting to discuss the following item: 1. Continuation of the Growth Policy Update. NEXT MEETING A special meeting is scheduled for April 22, 2014 beginning at 7:00 p.m. in the City Council Chambers located at 201 1st Avenue East in Kalispell. A next regular planning board meeting is scheduled for May 13, 2014 same time and location. Chad Graham President APPROVED as submitted/corrected: / /14 Michelle Anderson Recording Secretary Kalispell City Planning Board Minutes of the meeting of April 8, 2014 Page 10 of 10