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H2a. Reso 5783 - Annexation - EisingerPLANNING FOR THE FUTURE MONTANA REPORT TO: Doug Russell, City Manager FROM: Jarod Nygren, Senior Planner Planning Department 201 V Avenue East Kalispell, MT 59901 Phone: (406) 758-7940 Fax: (406) 758-7739 www.kalispell.com/planning SUBJECT: KA-16-02 — Annexation and Initial Zoning of B-2 (General Business) for Eisinger Properties, LLC MEETING DATE: September 19, 2016 BACKGROUND: A request from Eisinger Properties, LLC to annex an 4.45 acre parcel into the city and zone the land B-2 (General Business) upon annexation. Originally, the application was submitted by Mann Mortgage; however, their application request was withdrawn and the owner of the property, Eisinger Properties, LLC, has chosen to continue the annexation application. The parcel is located at 837 West Reserve Drive, approximately 1/ mile east of U.S. 93. The property is currently undeveloped and will remain so at this time. A new cost of services analysis has been completed for the proposed project. Based on this analysis, the annexation will be net revenue to the city of approximately $4,036.13. The property proposed for annexation can be legally described as Tract 2 of Certificate of Survey #19815, of Section 30, Township 29 North, Range 21 West, P.M.,M., Flathead County, Montana. The Kalispell Planning Board held a duly noticed public hearing July 12, 2016, to consider the application request. Staff presented staff report KA-16-02 providing details of the proposal and evaluation. Staff reported that the proposed annexation and initial zoning request was compatible with the surrounding zoning, the growth policy, and the applicant has met the burden of proof requirements. Staff recommended that the Planning Board adopt the staff report as findings of fact, and recommend to the City Council that the annexation and initial zoning request be granted. During the public comment portion of the hearing, a representative of the applicant spoke in favor of the request. There being no further testimony, the public hearing was closed and a motion was presented to adopt staff report KA-16-02 as findings of fact, and recommend to the Kalispell City Council that the annexation an initial zoning request be approved. Board discussion concluded that the annexation and initial zoning was appropriate, and the motion passed unanimously on roll call vote. RECOMMENDATION: It is recommended that the Council approve the annexation and first reading of the ordinance for initial zoning of B-2. FISCAL EFFECTS: Approval of the request would have positive fiscal impact to the City. ALTERNATIVES: Deny the request. ATTACHMENTS: Resolution No. 5783 Ordinance No. 1776 Annexation and initial zoning Staff Report KA-16-02 Minutes of the July 12 2016, Kalispell Planning Board and Application Materials Aimee Brunckhorst, Kalispell City Clerk Return to: Kalispell City Clerk PO Box 1997 Kalispell, MT 59903 RESOLUTION NO. 5783 A RESOLUTION TO PROVIDE FOR THE ALTERATION OF THE BOUNDARIES OF THE CITY OF KALISPELL BY INCLUDING THEREIN AS AN ANNEXATION CERTAIN REAL PROPERTY DESCRIBED AS TRACT 2 OF CERTIFICATE OF SURVEY 19815 OF SECTION 30, TOWNSHIP 29 NORTH, RANGE 21 WEST, P.M.M., FLATHEAD COUNTY, MONTANA, TO BE KNOWN AS EISINGER PROPERTIES ADDITION NO. 425; TO ZONE SAID PROPERTY IN ACCORDANCE WITH THE KALISPELL ZONING ORDINANCE, AND TO DECLARE AN EFFECTIVE DATE. WHEREAS, the City of Kalispell has received a petition from Eisinger Properties, LLC, the owners of the above -referenced property, requesting the City of Kalispell annex the territory into the City; and WHEREAS, the Kalispell Planning Department has made a report on the petitioner's Annexation Request, #KA-16-02, dated June 30, 2016; and WHEREAS, the Kalispell City Planning Board and Zoning Commission recommended the territory be zoned City B-2, General Business, on approximately 4.45 acres of land upon annexation into the City of Kalispell; and WHEREAS, the City of Kalispell desires to annex said property in accordance with Title 7, Chapter 2, Part 46, Montana Code Annotated. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL AS FOLLOWS: SECTION 1. That all the real property described as Tract 2 of Certificate of Survey 19815 of Section 30, Township 29 North, Range 21 West, P.M.M., Flathead County, Montana, be annexed to the City of Kalispell and the boundary of the City is altered to so provide, and shall be known as Eisinger Properties Addition No. 425. SECTION 2. Upon the effective date of this Resolution, the City Clerk is directed to make and certify under the seal of the City, a copy of the record of these proceedings as are entered on the minutes of the City Council and file said documents with the Flathead County Clerk and Recorder. From and after the date of filing of said documents as prepared by the City Clerk, or on the effective date hereof, whichever shall occur later, said annexed territory is part of the City of Kalispell and its citizens and property shall be subject to all debts, laws and ordinances and regulations in force in the City of Kalispell and shall be entitled to the same privileges and benefits as are other parts of the City. SECTION 3. The territory annexed by this Resolution shall be zoned in accordance with the Kalispell Zoning Ordinance. SECTION 4. This Resolution shall be effective immediately upon passage by the City Council. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL, THIS 19TH DAY OF SEPTEMBER, 2016. Mark Johnson Mayor ATTEST: Aimee Brunckhorst, CMC City Clerk ESTIMATED COST OF SERVICES ANALYSIS (100% Build Out Scenario) Project Name: Mann Mortgage - 837 W Reserve Dr. Date 9/15/2016 Calculated By: Kalispell Planning Department Number of acres proposed to be annexed: Number of commercial lots to be annexed: Total square footage of all the lots to be annexed: Estimated market value of property: 4.45 1 193,842 $485,000 1. COST OF SERVICES UNDEVELOPED ACRES DEVELOPED ACRES COST/ACRE TOTAL Fire (FY16 budget $2,735,865) 0 0 $ 107.37 $ Police (FY16 budget $4,452,984) 0 0 $ 173.33 $ General Gov't Services (FY budget $5,387,859) 0 0 $ 167,50 $ Subtotal $ SERVICE NO. OF UNITS COST/UNIT TOTAL Roads (Lineal feet of road to be maintained) 0 $ 5.05 $ Water (based on number of ERUs) 0 $ 185.51 $ Sewer (based on number of ERUs) 0 $ 168.51 $ Wastewater Treatment (based on number of ERUs) 0 $ 227.38 $ Stormwater (calculated at a impervious surface rate of 6 ERUs/Acre) 0 $ 67.87 $ Subtotal $ _ TOTAL ANTICIPATED COST OF SERVICE _ $ 2. ANTICIPATED CITY ASSESSMENT REVENUE GENERATED Total square footage to be annexed: 193,842 Number of lots: 1 ASSESSMENT AVE SO FT FY15/16 ASSESSMENT TOTAL Storm sewer assessment (Capped) (Res. 5732): 193,842 0.00999 $ 250.90 Street maintenance assessment(Res. 5731): 193,842 0.0223343 $ 1,171.07 Urban forestry assessment (capped $300 per lot)(Res. 5729): 193,842 0.00171 $ 300.00 Light maintenance assessment ( Res. 5733): 193,842 0.00165 $ 319.84 Average water and sewer bill $ $ - SUBTOTAL ANTICIPATED REVENUE FROM ASSESSMENTS PER LOT = $ 2,041.81 TOTAL ANTICIPATED REVENUE FROM ASSESSMENTS FROM ALL LOTS = $ 2,041.81 3. TAX REVENUE Estimated market value of property: $ 485,000.00 NO. OF UNITS VALUE PER PROPERTY TOTAL Total assessed value: 1 $ 485,000.00 $ 485,000.00 TOTAL ASSESSMENT REAL ESTATE TAX I TAXABLE VALUE Total taxable value: $ 485,000.00 0.02 $ 9,700.00 MILLS LEVIED TOTAL Tax revenue for all functions (based on 781.1 mill levy): 0.7811 $ 7'576. 77 TOTAL CITY TAX REVENUE (based on 205.6 mill levy) _ I 1 1 $1,994.32 4. I MPACT FEES UNIT QUANTITY COST PER UNIT Total ewer ImpactFee: ERU 0 $ 5,757.00 $0.00 Total Water ImpactFee: ERU 0 $ 6,418.00 $0.00 Total Storm ImpactFee: ERU 0 $ 1,121.00 $0.00 Total Police Impact Fee:(Res. 5744 Comm. Sq. Footage 0 $ 16.00 $0.00 Total ire Impact Fee es. 5745 : lComm. Sq. Footage 0 $ 350.00 $0.00 Total Project Impact Fee = 5. TOTAL ANTICIPATED REVENUE GENERATED TO THE CITY (ITEMS 2 AND 3) $4,036.13 6. ONE TIME IMPACT FEE PAYMENT TO THE CITY (ITEM 4) $0.00 7. NET REVENUE TO THE CITY PER YEAR (ITEM 5 - ITEM 1) $4,036.13 5. TOTAL ANTICIPATED REVENUE GENERATED TO THE CITY (ITEMS 2 AND 3) $4,036.13 6. ONE TIME IMPACT FEE PAYMENT TO THE CITY (ITEM 4) $0.00 7. NET REVENUE TO THE CITY PER YEAR (ITEM 5 - ITEM 1) $4,036.13 MANN MORTGAGE, LLC REQUEST FOR INITIAL ZONING OF B-2, UPON ANNEXATION STAFF REPORT #KA-16-02 KALISPELL PLANNING DEPARTMENT June 30, 2016 A report to the Kalispell City Planning Board and the Kalispell City Council regarding a request from Mann Mortgage, LLC to annex into the city limits with an initial zoning designation of B-2 upon annexation. A public hearing has been scheduled before the planning board for July 12, 2016, beginning at 6:00 PM in the Kalispell City Council Chambers. The planning board will forward a recommendation to the Kalispell City Council for final action. BACKGROUND INFORMATION A request from Mann Mortgage, LLC, to annex a 4.45 acre parcel into the city and zone the land B-2 (General Business), upon annexation. The parcel is located at 837 West Reserve Drive, approximately 1 /4 mile east of U.S. Hwy 93 N. The property is currently undeveloped, however, upon annexation the applicant is proposing to build a 24,000 square foot office building. Water and sanitary sewer service are in the vicinity of the property and upon annexation extension will be constructed to serve the property. This report evaluates the application in accordance with state and local regulations. The annexation request and initial city zoning classification will be reviewed in accordance with Section 27.03.010(4) of the Kalispell Zoning Ordinance. This property will be annexed under the provisions of Sections 7-2-4601 through 7-2-4610, M.C.A., Annexation by Petition. A. Petitioner / Owner: Mann Mortgage, LLC 1230 Whitefish Stage Road Kalispell, MT 59901 B. Location and Legal Description of Properties: The property under consideration is located at 837 West Reserve Drive, approximately 1 /4 mile east of the Highway 93 North and West Reserve Drive intersection. The property proposed for annexation can be legally described as Tract 2 of Certificate of Survey # 19815, of Section 30, Township 29 North, Range 21 West, P.M.,M., Flathead County, Montana. 1 'np -ee CR t+�7FP �t� r r.� Or Figure 1: Property Location C. Existing Land Use and Zoning: The property is currently within the county zoning jurisdiction and is zoned R-1 (Suburban Residential). The R-1 Zoning District is intended to allow for estate - type development. These areas would normally be located in rural areas away from concentrated urban development, typically not served by water or sewer services, or in areas where it is desirable to permit only low -density development (e.g., extreme topography, areas adjacent to floodplains, and airport runway alignment extensions). The 4.45 acre property is currently undeveloped grasslands, however, upon annexation the applicant is proposing to build a 24,000 square foot office building. D. Proposed Zoning: The City of Kalispell zoning proposed for the site is B-2 (General Business) zone. The Kalispell Zoning Regulations state that the B-2 zone is intended to "provide for a variety of sales and service establishments to serve both residents of the 14 area and the traveling public. The district depends on the proximity to major streets and arterials and should be located in business corridors or in islands. This zoning district would typically be found in areas designated as commercial and urban mixed use on the Kalispell Growth Policy Future Land Use Map". The subject property is located on West Reserve Drive, which is a major transportation corridor. Additionally, the neighboring properties to the west are located within the B-2 zone, so designation of a B-2 zone on this property would be a continuation of neighboring development. The growth policy designation of the property is commercial. E. Size: The subject property is 4.45 acres. F. Adjacent Land Uses and Zoning: North: Vacant land/Stillwater River, city B-2/PUD zoning. East: Vacant land/Stillwater River, county R-1 zoning. West: Eisinger auto dealership and Town Pump, city B-2 zoning. South: Home Depot and vacant land, city B-2/PUD zoning and county SAG-10 zoning. G. General Land Use Character: The land use character of the area can be described as retail commercial and undeveloped grasslands. The active commercial land uses in the area consist of an auto dealership and convenience store to the west and Home Depot to the south. Vacant undeveloped grasslands and the Stillwater River are to the east. H. Utilities and Public Services: City water and sewer mains both terminate within the vicinity of the property to the south and west. Both utilities will need to be extended to the property. When annexed, the developer will be required to pay the cost for the utility extension. The design and sizing of these utilities will be reviewed and approved by the Kalispell Public Works Department. Sewer: City of Kalispell if annexed Water: City of Kalispell if annexed Refuse: Private Refuse Electricity: Flathead Electric Cooperative Natural Gas: Northwestern Energy Telephone: CenturyLink Schools: School District 5 Fire: City of Kalispell if annexed Police: City of Kalispell if annexed 3 I. ANNEXATION EVALUATION 1. Compliance with the growth polio Two primary mechanisms for managing growth in the City of Kalispell exist which are to rely on redevelopment and infill within the current city limits or annexation of outlying areas. A goal of the growth policy is to provide a comprehensive, effective growth management plan that provides for all the needs of the community, is adaptable to changing trends and is attuned to the overall public welfare. Chapter 2, Growth Management, contains the following goals that are relevant to this particular annexation request: 1. Implement a comprehensive, effective growth management program that recognizes and upholds the general welfare of the community as well as individual rights. 2. New urban and suburban development occurs in areas where public water and sewer are available. The land use designation of the property in the City Growth Policy 2020 is "commercial". The commercial land use designation acknowledges that Kalispell is the retail, commercial and government center of Flathead Valley. Chapter 4, Land Use: Business and Industry, contains the following policies which support the proposed development within the commercial land use category: General Commercial: a. Expansion of commercial districts is anticipated to occur as infill and a continuation of existing commercial areas to avoid the creation of a new commercial district and leapfrog development. The proposed development is a continuation of existing commercial developments to the west and south. It would not create a new commercial district, or be considered leapfrog development since it's in the vicinity of existing commercial developments. Therefore, since the proposed development is within an existing commercial corridor it would be considered a continuation of existing commercial areas and would not be considered leapfrog development b. Expansion of commercial areas should be contingent upon the provision of public services and adequate infrastructure with consideration given to anticipated impacts on the neighborhood and natural environment. Public infrastructure and services such as; street, water, sewer, sidewalks, fire, police and ambulance are adequate to accommodate potential impacts associated with the development of this site. The applicant will be required to pay all applicable impact fees to mitigate any potential impacts. Additionally, public utilities are in the vicinity of the property and extensions will be developed to serve the property. A n storm water management plan will be required prior to development of the site to mitigate any potential impacts due to increased impervious surfaces. Site design will be reviewed by the Site Review Committee in order to adequately address any site issues such as; pedestrian access, traffic flow, fire safety, landscaping, etc. prior to permit issuance. Therefore, the public services and infrastructure have been given consideration and are adequate for the neighborhood and natural environment. Municipal Services: Municipal services, such as sewer mains and water mains, are located within the vicinity of the property to the south and west. These utilities will need to be extended to the property at the time the property undergoes development. The site is currently protected by the West Valley Fire District and the Flathead County Sheriffs office. The applicant has submitted a Notice of Withdrawal from Rural Fire District. At the time of annexation, the property will be served by the Kalispell Fire Department. Similarly, the property will be served by the Kalispell Police Department upon annexation. Distance from current citv limits: The project site is bordering city limits on its west property boundary (Town Pump) . Cost of services: Once annexed to the city, full city services will be made available to the property owner. Any necessary infrastructure associated with this development will be required to be constructed in accordance with the City of Kalispell's Design and Construction standards and any other development policies, regulations or ordinances that may apply. If annexed, the property owner will be extending and connecting to city sewer and water at the time of development. The attached cost of services analysis prepared for this property is for commercial annexations. The analysis is only an estimate based on a variety of assumptions. The analysis does not take into consideration changes in methods of assessment and estimated costs associated with services. The information can only be used as a general estimate of the anticipated cost of services and revenue. The cost to serve the land proposed for annexation is shown in the attached cost of service analysis - built out scenario. The total cost of services is estimated to be $6,367.47. Almost all of the cost is related to the protection of the property by Kalispell Police and Fire. Based on the city's taxation and assessment policies, the property will generate approximately $27,915.79 in total annual revenue to the city ($23,438.40 in taxes and $4,477.39 in assessments). Based on this analysis, the annexation will be net revenue to the city of approximately $21, 548.32. 5 U. INITIAL ZONING EVALUATION BASED ON STATUTORY CRITERIA The statutory basis for reviewing a change in zoning is set forth by 76-2-303, M.C.A. Findings of fact for the zone change request are discussed relative to the itemized criteria described by 76-2-304, M.C.A. and Section 27.29.020, Kalispell Zoning Ordinance. The site is currently zoned county R-1. The applicants are requesting city B-2 (General Business) to accommodate the proposed office use for the entire 4.45 acres. The Kalispell Zoning Regulations state that the B-2 zone is intended to "provide for a variety of sales and service establishments to serve both residents of the area and the traveling public. The district depends on the proximity to major streets and arterials and should be located in business corridors or in islands". The uses permitted within B-2 are in keeping with the existing commercial developments to the south, west and north. Does the requested zone comply with the growth policy? The property is designated by the Kalispell Growth Policy future land use map as "commercial" which anticipates a B-2 Zoning District. The requested initial zoning of B-2 is consistent with the commercial designation in the growth policy. 2. Will the requested zone have an effect on motorized and nonmotorized transportation systems? It can be anticipated that the proposed zone change of the property will increase traffic impacts in the area due to the relatively low density of the area currently and the relatively higher density that will come with the commercial development. Prior to development of the project site a traffic impact study will be required. The traffic impact study will identify any mitigation measures that need to be implemented in order to mitigate level of service issues that may be caused by the project. 3. Will the requested zone secure safety from fire, panic, and other dancers? Adequate access and public facilities are available to the site in the case of an emergency. There are no features related to the property which would compromise the safety of the public. All municipal services including police and fire protection, water, and sewer service will be made available to the area. The site is one mile from Kalispell Fire Station #62, with excellent response time. 4. Will the requested zone promote the public health, safety and general welfare? The requested zoning classification of B-2 will promote the health and general welfare by restricting land uses to those that would be compatible with the adjoining properties. 5. Will the requested zone provide for adequate light and air? The proposed zoning designation of B-2 and the required landscaping and parking requirements, stipulated within the Kalispell Zoning Ordinance, give due consideration for adequate light and air. C, 6. Will the requested zone promote compatible urban growth? The requested B-2 Zoning District allows the property to be developed as an office. The B-2 Zoning District is compatible with the established land use pattern in this area, which is a mixture of commercial uses along the transportation corridor. 7. Will the requested zone facilitate the adequate provision of transportation, water, sewerage, schools, parks, and other public requirements? Public services and facilities are available or will need to be extended to the property. Since the request is a commercial use it will not have an impact on park or school facilities. The site has direct access to West Reserve Drive which is designated and designed to arterial standards. A traffic impact study will identify any mitigation measures that need to be implemented in order to mitigate level of service issues that may be caused by the project. 8. Does the requested zone give consideration to the particular suitability of the property for particular uses? The proposed B-2 Zoning District is consistent with the surrounding commercial character of the area and its location along West Reserve Drive. The requested B- 2 Zoning District gives due consideration of the suitability of this property for the permitted uses in the zoning district. 9. Does the requested zone dive reasonable consideration to the character of the district? The general character of the area is commercial. By assigning the property with the B-2 Zoning District the development of this property will be consistent with the commercial character of the area. The proposed zoning is also consistent with City B-2 zoning designations of the properties to the north, south and west. 10. Will the requested zone avoid undue concentration of people? An increase in the number and concentration of people in the area will likely result after this land has been converted from vacant land into to a more intensive commercial city zoning. However, the intensity of the uses of the property would be in direct relationship to the availability of public services, utilities and facilities as well as compliance with established design standards. The design standards and availability of utilities would provide the infrastructure needed to insure that there will not be an overcrowding of the land or undue concentration of people. 11. Will the proposed zone conserve the value of buildings? It can be suspected that development of the vacant lot with a commercial office building will increase the values of properties in the area. The zoning requirements stipulated within the B-2 Zoning District outline uses and standards that will protect the investment of the subject property, as well as neighboring properties which are also subject to the B-2 Zoning District. 7 12. Will the requested zone encourage the most appropriate use of the land throughout the municipality? Commercial development should be encouraged in areas where services and facilities are reasonably available. In this case water and sewer lines are located within a short distance of the property. The proposed zoning is consistent with the city growth policy future land use designation and is compatible with surrounding development. RECOMMENDATION: Staff recommends that the Kalispell City Planning Board and Zoning Commission adopt Staff Report #KA-16-02 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 B-2 (General Business). KALISPELL CITY PLANNING BOARD & ZONING COMMISSION MINUTES OF REGULAR MEETING July 12, 2016 CALL TO ORDER AND ROLL The regular meeting of the Kalispell City Planning Board and CALL Zoning Commission was called to order at 6:00 p.m. Board members present were: Chad Graham, Charles Pesola, Ronalee Skees, Doug Kauffman, Rory Young, and Chris Yerkes. Steve Lorch was absent. Tom Jentz, Jarod Nygren & PJ Sorensen represented the Kalispell Planning Department. CHAIRMAN WELCOMED President Graham noted that he was not able to attend the last 2 NEW BOARD MEMBERS meetings due to the council's budget review and vacation but he wanted to officially welcome Ronalee Skees and Chris Yerkes to the board. ELECTION OF OFFICERS Pesola made a motion to nominate Chad Graham for President of PRESIDENT & VOTE BY the board. ACCLAMATION The motion passed unanimously on a vote by acclamation. ELECTION OF OFFICERS Graham made a motion to nominate Charles Pesola for Vice VICE PRESIDENT & VOTE President of the board. BY ACCLAMATION The motion passed unanimously on a vote by acclamation. APPROVAL OF MINUTES Pesola moved and Kauffman seconded a motion to approve the minutes of the June 14, 2016, Kalispell Planning Board. VOTE BY ACCLAMATION The motion passed unanimously on a vote by acclamation. PUBLIC COMMENT No one present wished to comment. DENGAR PROPERTIES A request from Dengar Properties for a conditional use permit for CONDITIONAL USE PERMIT an accessory casino within the within the B-2 (General Business) Zoning District. The property is located at 1250 Highway 2 West (Tree Frog Tavern). STAFF REPORT Jarod Nygren, representing the Kalispell Planning Department reviewed Staff Report, KCU-16-04 for the board. Nygren noted this is a request for a conditional use permit for an accessory casino at what is currently the Tree Frog Tavern which soon will be a Rival's Restaurant/Bar. The property is zoned B-2 (General Business) and is located at 1250 Hwy 2 West. Nygren noted that the surrounding zoning is also B-2 and the land use category of the property is commercial. Nygren reviewed the surrounding land uses, site plan and floor Kalispell City Planning Board Minutes of the meeting of July 12, 2016 Pagel plan of the property. The casino will be located in 666 square feet of the 5,174 square foot building. Accessory casinos are permitted if they are 20% or less of the primary use. Another requirement of the accessory casino is that it is generally shielded from the primary use. Nygren noted that the owners of the Tree Frog Tavern also applied for an accessory casino, which was approved by city council. There are no changes to the conditions but they chose not to operate the casino and their conditional use permit expired. Staff recommends that the Kalispell Planning Board adopt staff report #KCU-16-04 as findings of fact and recommend to the Kalispell City Council that the conditional use permit be approved subject the 6 conditions in the staff report. BOARD DISCUSSION Pesola asked in order to deny the conditional use permit the board would need to state findings of fact that would show that a casino was not suitable for the area, and Nygren said yes. Kauffman asked if they would be required to reconstruct curb, gutter and sidewalk and Nygren said that is correct, along the north side, which is the same condition that was placed on the last conditional use permit for this property. PUBLIC HEARING Kim Larson, APEC Engineering noted they are representing the applicant and do not have issues with most of the attached conditions, except Condition 5.c. that relates to casino signage. Larson said that under additional requirements for casinos certain types of external signage may be limited or prohibited. Yet the condition that is being imposed implies no casino related signage can be used. Larson provided the board with photographs of Fatt Boys Bar & Restaurant and the Flathead Liquor Store that both contain casinos, and both have the word casino on the side of the building. The owner would ask to be allowed to have a modest amount of signage related to a casino and, he added, to prohibit him from having the signage would be hurting his business due to the fact that competitors both have casino related signage. MOTION Pesola moved and Young seconded a motion to adopt staff report #KCU-16-04 as findings of fact and recommend to the Kalispell City Council that the conditional use permit be approved subject the 6 conditions in the staff report. BOARD DISCUSSION Pesola said the board had already hashed out this particular CUP a few years ago when the original CUP was discussed and the area hasn't changed. He sees no reason not to approve the CUP. In regards to the signage request Pesola suggested that the prohibition of casino signage has been a condition over the last several years. Kalispell City Planning Board Minutes of the meeting of July 12, 2016 Page 12 Nygren said a few years ago there was a small casino related sign approved with the Loading DockBrannigan's. Since that time amendments approved by City Council limited signage on accessory casinos and he added the same condition was placed on the new Town Pump located at the north end of Kalispell. Pesola asked if the applicant had a proposal for signage and Mr. Larson said they did not prepare one but if the board would be open to a minimal amount of signage they would submit a proposal to the Architectural Review Committee for approval. Graham asked what signage is used on the new Town Pump that relates to a casino and Nygren said it simply states Lucky Lil's. Jentz noted if this was a full -standing casino they could have signage but for an accessory casino the restrictions apply because they were not intended to compete with full -standing casinos. In this area however a full -standing casino would not be able to come in because of the distance restrictions between existing casinos and the new restrictions approved by the city council last year. ROLL CALL I The motion was approved unanimously on a roll call vote. MANN MORTGAGE A request from Mann Mortgage, LLC to annex a 4.45 acre parcel ANNEXATION into the city and zone the land B-2 (General Business) upon annexation. The parcel is located at 837 West Reserve Drive, approximately t/a mile east of U.S. 93. BOARD MEMBER RECUSED Young noted he has a conflict of interest because he is the project HIMSELF manager for Jackola Engineering, the firm assisting Mann Mortgage with this request. He will be stepping down. STAFF REPORT Jarod Nygren, representing the Kalispell Planning Department reviewed Staff Report, KA-16-02 for the board. Nygren noted this property is located just east of the new Town Pump gas station & casino. The property is currently undeveloped, however upon annexation the applicant is proposing to build a 24,000 square foot office building. Water and sewer services are in the vicinity of the property and upon annexation extensions will be constructed to serve the property. Nygren reviewed the surrounding zoning, land uses and a vicinity map of the property. Staff recommends that the Kalispell Planning Board and Zoning Commission adopt Staff Report #KA-16-02 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 Kalispell City Planning Board Minutes of the meeting of July 12, 2016 Page 13 be B-2 (General Business). BOARD DISCUSSION Graham noted when there were discussions regarding the Town Pump project there were concerns about the site stability, along the back side of the property, and he asked if the same concerns are along this property as well. Nygren said no that has not been a concern. PUBLIC HEARING Rory Young, Jackola Engineering, 2250 Hwy 93 South stated they are project managing and designing the site and the building on behalf of Mann Mortgage. Young or Chris Clark of Mann Mortgage would be happy to answer any questions. MOTION Kauffman moved and Pesola seconded a motion to adopt Staff Report #KA-16-02 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 B-2 (General Business). BOARD DISUCSSION None. ROLL CALL The motion passed unanimously on a roll call vote. Board member Young returned to his seat. MONTANA CHIP/KRAIG A request from Montana Chip Partners and Kraig Trippel for TRIPPEL ANNEXATION annexation and initial zoning of I-1 (Light Industrial). The property to be annexed contains approximately 15,472 square feet of land currently owned by Kraig Trippel and will be added to an adjoining property owned by Montana Chip Partners that is being used as a mini -storage facility. The property is located directly east of 51 N Meridian Road. STAFF REPORT PJ Sorensen, representing the Kalispell Planning Department reviewed Staff Report, KA-16-01 for the board. Sorensen noted the board is reviewing an annexation and initial zoning but there will also be a de -annexation involved. He described the location of the property which is near the intersection of Bch Avenue WN and West Montana Street. This property is a wholly surrounded island that is currently in the county. Wholly surrounded areas cannot be annexed without a petition by council if the land that is being used for industrial purposes. Montana Chip, LLC, owns and operates the mini - storage directly west of this property and they need extra property to accommodate storm drainage as they are expanding their business. This property is a natural trade to meet this requirement. Sorensen reviewed a map of the property. Kalispell City Planning Board Minutes of the meeting of July 12, 2016 Page 14 Sorensen provided additional information on the trade and noted the de -annexation is reviewed through city council and both the annexation and de -annexation will be considered together. Staff recommends that the Kalispell Planning Board and Zoning Commission adopt Staff Report #KA-16-01 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-1 (Light Industrial). The action to de -annex the second portion of land will be submitted to the City Council. After a Resolution of Intent and comment period as detailed in state statutes, the City Council will consider both the annexation and the de -annexation at the same meeting. BOARD DISCUSSION Pesola asked how is the de -annexation addressed in the recommendation and Sorensen stated it is separate and further explained the process. The board is only dealing with the annexation and initial zoning of the property to be annexed. Young noted that the letter from Montana Chip states at the time the main rail is removed and service is suspended the private rail line will be abandoned. He asked if the easement area is BNSF R/W and Sorensen said no, it is privately held. He explained further. Jentz said in railroad language it is called an industrial spur which is privately owned, privately built, and privately managed and maintained. Young asked is someone has confirmation that the rail line is coming out and Jentz said if it doesn't come out with the TIGER grant to develop the CORE area it will at some point in the future due to lack of users. The purpose of that condition is to clarify the ownership and responsibility of the line and clean up the property. Graham asked if there are any buildings in the area and Jentz noted there may be a small corner of a building on the property however, the annexation/de-annexation will clean up that situation as well. PUBLIC HEARING No one wished to speak and the hearing was closed. MOTION Young moved and Kauffman seconded a motion adopt Staff Report #KA-16-01 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-1 (Light Industrial). BOARD DISCUSSION None. Kalispell City Planning Board Minutes of the meeting of July 12, 2016 Page 15 ROLL CALL To motion was approved on a roll call vote. OLD BUSINESS None. NEW BUSINESS Nygren noted a 2 lot minor preliminary plat application will be reviewed next month, located on the far south end of Woodland Drive. The subdivision would allow for townhomes on the property. ADJOURNMENT The meeting adjourned at approximately 6:40 p.m. NEXT MEETING The next meeting of the Kalispell Planning Board will be held on August 9, 2016, located in the Kalispell City Council Chamber, 201 1" Avenue East, Kalispell, beginning at 6:00 p.m. /s/Chad Graham Chad Graham President APPROVED as submitted 08/9/2016. /s/Michelle Anderson Michelle Anderson Recording Secretary Kalispell City Planning Board Minutes of the meeting of July 12, 2016 Page 16