PUBLIC HEARING: Consider a Request for a Variance to Impervious Coverage at 6151 140th Avenue NW (Project No. 25-118); Case of Zero Zone

The City has received a Land Use Application from Loucks, Inc., on behalf of Zero Zone (the "Applicant"), for a Minor Plat, Site Plan, and Variance for a proposed building addition and parking lot expansion on the properties generally known as 6151 140th Avenue and 6030 Bunker Lake Boulevard (referred to collectively as the "Subject Property").  The Subject Property is within the Shoreland Overlay District due to its proximity to Magnesium Street Pond (DNR ID #2-116), which is classified as a General Development Lake.  The Shoreland Overlay District includes land within 1,000 of the Ordinary High Watermark (OHW).  The Shoreland Overlay District limits the amount of impervious coverage to no more than twenty-five percent (25%) of a lot.  The existing improvements on the Subject Property equate to 39.9% impervious coverage and after the proposed improvements, the impervious coverage would be 62.7%.  Thus, the Applicant is seeking a variance to the impervious coverage limitation.

Staff attempted to notify property owners within 350 feet of the Subject Property, as reflected in the Anoka County Property Records, of the Variance request and the Public Hearing to be held by the Planning Commission. A notice of the Public Hearing was published in the Anoka County Union Herald, the City's official newspaper. A proposed development sign was also placed on the Subject Property.

Project Overview
The Applicant is proposing to construct a 57,875 square foot building addition, along with expanding the parking lot, on the Subject Property.  As part of this project, the Applicant is replatting the Subject Property into a single parcel so that the proposed addition will not straddle a property line.  The building addition will include increased space for production and manufacturing, along with an engineering lab, testing area, conference rooms, additional office space and a lunchroom.  The currently vacant parcel was acquired from the City in 2007 with the intention of accommodating future expansion.  The project will also increase available parking from 113 stalls to 269 stalls.  The proposed improvements meet or exceed all minimum standards in the I-1 Light Industrial zoning district and therefore, this project does qualify for an Administrative Site Plan review (the majority of review of civil plans will occur as part of the Building Permit review).

Variance
The Shoreland Overlay District restricts impervious coverage to no more than twenty-five percent (25%) of a property.  The Subject Property currently has 39.9% impervious coverage and with the proposed building addition and parking lot expansion, the impervious coverage will increase to 62.7%.  The Subject Property is approximately 140 feet away from the OHW of Magnesium Street Pond (even further from the 'open water'), and is separated from the waterbody by Bunker Lake Boulevard, a four-lane county highway.  As part of the Site Plan, the Applicant is proposing two new stormwater basins to meet current stormwater requirements (including infiltration of the first inch of rainfall).  Post-development runoff cannot exceed pre-development runoff rates and thus, the proposed improvements should not have any negative impact on the Magnesium Street Pond.

Staff connected with the MN DNR regarding this project, prior to the Applicant submitting the Land Use Application.  The DNR Area Hydrologist noted that their greatest concern with impervious coverage is within the Shore Impact Zone (SIZ), which is calculated at fifty percent (50%) of the minimum setback from the OHW.  For General Development Lakes, which Magnesium Street Pond is classified, the setback from the OHW is fifty (50) feet, making the SIZ twenty-five (25) feet from the OHW.  The proposed improvements are far outside this area.  Additionally, per the Lower Rum River Watershed Management Organization (LRRWMO) standards, the first one inch (1") of rainfall must be infiltrated on site.  This standard did not exist when the Subject Property originally developed.  Thus, as a result of these proposed improvements, there will actually be enhanced stormwater management compared to the original development of the Subject Property.

The MN DNR Area Hydrologist noted that they would encourage the use of appropriate stormwater infiltration practices, such as riparian vegetation, permeable pavement, bioretention, etc.  The Applicant is proposing to utilize riparian seed mixes for the infiltration basins ('Wet Ditch' and 'Emergent Wetland' seed mixes) and the majority of tree species included in the Landscape Plan are native to Minnesota.  Finally, the project must comply with not only the City's stormwater management requirements, which address both water quality and runoff rates, but also the LRRWMO's stormwater management standards as well.  Staff has forwarded the Site Plan and Landscape Plan to the DNR for official comment.  A response was received on September 22, 2025.  The MN DNR stated that as long as there is no direct runoff from the Subject Property entering the public waterbody (Magnesium Street Pond), they would not likely provide any formal comment on the request (i.e., they would have no objection to the requested variance).

The Applicant provided responses to several "practical difficulties" in justifying the variance per City Code Section 106-220 (see attached Applicant Narrative).  This request was reviewed by the Environmental Policy Board (EPB) at their September 15, 2025, meeting and the EPB recommended approval of the variance.

Alternatives

Alternative #1: Approve the variance to impervious coverage on the Subject Property as requested by the Applicant.  There are more stringent stormwater management regulations in effect today than there was when the Subject Property was originally developed, including the requirement to infiltrate the first one (1) inch of rainfall on site.  Furthermore, the post-development runoff rate cannot exceed the pre-development runoff rate.  While the project is in the Shoreland Overlay District, it is separated from Magnesium Street Pond by a four (4) lane county highway (Bunker Lake Boulevard), is well outside both the SIZ and all required setbacks for a General Development Lake, and does not directly discharge into that waterbody.  The project is incorporating riparian vegetation within the infiltration basins and will be landscaped with primarily native tree species.  Staff supports this alternative.

Alternative #2: Do not approve the variance to impervious coverage.  The City sold this land to the Applicant almost twenty (20) years ago, with the intention of seeing this business grow and expand.  The project will properly address stormwater so that there is not a negative impact on Magnesium Street Pond.  Staff does not support this alternative.

All costs associated with this request are the Applicant's responsibility.

The Environmental Policy Board recommends approval of the variance to impervious coverage on the Subject Property.

Motion to adopt Resolution #25-215 granting a variance to impervious coverage within the Shoreland Overlay District.