Public Hearing: Consider Zoning Map Amendment Along with a Site Plan and Minor Plat for Storyteller Café Located at 7790 Sunwood Drive NW (Project No. 23-118); Case of Stories Foundation

The purpose of this case is to review a Site Plan and Minor Plat for a proposed mixed-use building to be located at the southeast corner of Sunwood Drive and Yolite Street (the "Subject Property").  Stories Foundation (the "Applicant") is seeking approval for a three (3) story building that will include restaurant and retail space on the first floor, three (3) apartments and office space on the second floor, and rooftop patio space on the third floor.  Some of the City Council may recall this project, as it went through the approvals process in 2021; however, those approvals have since expired.

The Zoning Code Update, which goes into effect on December 17, 2023, included adding the subdistricts of The COR to the official Zoning Map.  Thus, the Subject Property will officially be zoned COR-2, which does not permit dwelling units, except for live-work units.  The Planning Commission recommended amending the Zoning Map to rezone the Subject Property to COR-1, which allows not only the restaurant, retail, and office uses, but also allows dwelling units as well. 

The Storyteller Café will serve breakfast and lunch.  The building will provide office space for the nonprofit company, Stories Foundation, which will operate the café.  The Applicant currently employs three full-time staff and two contract employees.  The Applicant would hire at least one more full-time manager and 2-3 part-time employees to run the café and retail spaces.  The Applicant's goal is to begin using the space to offer job training in year two of operation. Job training would be provided in a variety of industries and for vulnerable people and those who have been exploited.

A public notice was sent to all property owners within 350 feet of the Subject Property to inform them of the request for Planning Commission review of the Site Plan and Minor Plat.  Staff also attempted to notify property owners within 350 feet of the Subject Property, as reflected in the Anoka County Property Records, of the Public Hearing the City Council would conduct regarding the proposed Zoning Map Amendment. A notice of the Public Hearing was also published in the Anoka County UnionHerald, the City's official newspaper.  A "proposed development" sign was placed on the Subject Property.

General Project Summary
The Applicant is proposing a three (3) story building, with an approximate footprint of 6,900 square feet.  This would be a mixed-use building, including retail, restaurant, and office space, as well as three apartments.  The Subject Property is approximately 0.52 acres in size and just slightly over eighty (80) feet in width.  

Zoning and Guidance
The Subject Property is currently zoned COR, and is located in the COR-2 subdistrict per the COR Design Framework.  However, as previously noted, on December 17, 2023, the 'new' zoning map will go into effect and the Subject Property (and the property to the east, 7750 Sunwood Drive NW) will officially be zoned COR-2.  The Subject Property is guided as Mixed-Use in the 2040 Comprehensive Plan, which allows a density of anywhere between five (5) and seventy-five (75) units per acre.  Retail, restaurant, and office uses are all permitted in the COR-2 subdistrict.  Live-work units are a conditional use.  There are three (3) potential options to address the residential aspect of this project: (1) Process a Zoning Map Amendment to rezone the Subject Property as COR-1; (2) Process a Zoning Text Amendment to allow dwelling units in the COR-2 District; (3) Process a Conditional Use Permit for the live-work units.  The Planning Commission recommended rezoning the Subject Property (and the property to the east, 7750 Sunwood Drive NW, which is Sunwood Village) from COR-2 to COR-1.
 
Architecture
Building elevations, along with a color rendering, have been submitted (and are attached to this case).  The exterior finish of the building will consist of stucco, brick veneer, stone veneers, decorative smart panels, and glass windows/doors.  The building has been designed with 4-sided architecture as outlined in the COR Design Framework.  The rooftop patio space also provides an amenity currently not offered anywhere within The COR (or anywhere in the city).

Site Plan
The building is proposed to be thirteen (13) feet from the property line along Sunwood Drive, which not only complies with the COR Design Framework but also addresses one of the contingencies from the 2021 approval.  The Applicant did modify the Site Plan by eliminating a drive-thru that had previously been proposed and consolidating access to a single point off Yolite Street.  A small patio area is proposed between the building and Sunwood Drive for the café patrons.  There are twenty-one (21) proposed parking stalls, including two (2) handicap spaces.  Parking within The COR is subject to the following:

Use	Minimum # of Parking Stalls	Maximum # of Parking Stalls
Retail	2 stalls per 1,000 square feet	4 stalls per 1,000 square feet
Offices	2 stalls per 1,000 square feet	3 stalls per 1,000 square feet
Restaurants	1 stall per 2 seats	1 stall per 1 seat
Residential	1 per unit	2 per unit

More information about seating for the café is required to verify compliance with the parking standards.  But, a minimum of eight (8) stalls are required for the retail, office, and residential spaces, which leaves thirteen (13) spaces for the café use.  This is a small parcel that does restrict on-site parking.  However, there is on-street parking available on Sunwood Drive, Yolite Street, and Veterans Drive.  Screening, in the form of a decorative wall, railing, hedge, or some combination thereof, will be required along a portion of Yolite Street and along Veterans Drive. 

Plat
The Subject Property is currently an outlot and thus, a Minor Plat is necessary to convert the Subject Property into a buildable lot.  No new roads are needed, and utility services are already available.  Minor modifications to the Plat are required as the City is no longer the owner of the Subject Property (the Applicant purchased the Subject Property from the City late in 2021).

Alternatives

Alternative 1: Introduce Ordinance #24-01 to rezone the Subject Property and 7750 Sunwood Drive to COR-1 and approve the Site Plan and Minor Plat.  This project previously received approval by the City in 2021; however, the Applicant was and is still fundraising, and thus, the previous approvals expired.  The Applicant has incorporated the revisions that were identified during the original (2021) review and approval process into this plan set.  This project will result in the first true vertically mixed-use building within The COR.  With Yolite Street providing a logical break point between the COR-2 district (west of Yolite Street) and COR-1 (east of Yolite Street), the Zoning Map Amendment to rezone the two properties from COR-2 to COR-1 seems to be the most reasonable tool to address the apartment component of this project.  Planning Commission and Staff support this alternative.

Alternative 2: Identify an alternative tool to address the apartment component of this project (either a Zoning Text Amendment or a Conditional Use Permit for 'live-work' units) and approve the Site Plan and Minor Plat.  While Staff would not oppose this alternative, Yolite Street serves as a logical division between the two districts (COR-1 and COR-2) and the Zoning Map Amendment seems the most reasonable tool to address the apartment component of this project (plus will eliminate a 'lawful nonconforming' designation for the 7750 Sunwood Drive property that will apply once the new Zoning Map takes effect on December 17, 2023).

Alternative 3: Leave the zoning as is (COR-2) and do not approve the Site Plan or Minor Plat based on specific findings.  The civil plans were revised to address previously identified issues from 2021, such as compliance with the build-to requirements, adjustments to access, and eliminating the drive-thru component.  This project will be the first true vertically mixed-used building within The COR, something that has always been envisioned as part of the development of The COR.  This project will also provide the first rooftop patio within The COR, an exciting new amenity.  Staff does not support this alternative. 
 


 

The Applicant is responsible for all costs associated with this application.

The Planning Commission recommends rezoning the Subject Property (and 7750 Sunwood Drive) to COR-1 and approving the Site Plan and Minor Plat, contingent upon compliance with Staff's review comments (this contingency is incorporated into the attached Resolution).

Motion to introduce Ordinance #24-01 rezoning the Subject Property and 7750 Sunwood Drive NW from COR-2 to COR-1;

-and-

Motion to adopt Resolution #23-296, granting approval of the Site Plan and Minor Plat for Storyteller Café, contingent upon adoption of Ordinance #24-01.