"Rivenwick Village 5th Addition" - Sketch Plan Review for a 20-22 unit townhome development.

LGI Homes has submitted a sketch plan application for a 20- or 22-unit townhome development as an extension of the Rivenwick Village Fourth Addition that is currently under construction directly across 139th Lane.  The 3.19-acre property is zoned B-1 Neighborhood Business District and guided Mixed Use in the 2040 Comprehensive Plan.  The property has excellent visibility along Highway 10, right next to Village Bank, though access to it requires an additional turn off of Riverdale Drive onto 139th Lane from the other commercial users.  The applicant has noted that they have received very few calls from interested buyers and none from users that would meet the B-1 allowed uses.  B-1 allows for general retail, service businesses, and restaurants, among others that are generally considered least offensive near or adjacent to residential uses.  It does not allow for auto repair, auto sales, manufacturing, or warehousing/storage uses.    

The applicant has submitted two similar "horseshoe" sketch plans for review (the difference is based on if an existing drainage easement must stay or if it can be eliminated).  Typically, a sketch plan is required for any subdivision that results in four or more lots to make sure the developer is on the right track before investing significant financial resources in developing the detailed preliminary plat submittal.  While that is true in this case, there is an added requirement of a rezoning to R-2 Medium Density Residential district to make this development work.  A rezoning application has a lot of discretion involved, unlike site plans and conditional use permits that are bound to be approved if they meet all the requirements.  

The Rivenwick development began in the early 1990s as a mixed-use/master-planned development where the property would transition (south to north) from open space along the Mississippi River, then single-family lots, then townhomes, and then light business uses along Highway 10.  In 2004, some townhomes were approved along Highway 10 followed by Slumberland and the office condos the next year.  Suite Living, a multifamily assisted living facility, was approved in 2019.  In 2022, Rivenwick Village Fourth Addition, a 27-unit townhouse development was approved in the remaining townhome area, and the last of those units are under construction today.  This leaves the subject property as the last piece of developable land in Rivenwick.  

Should the Council feel the project is acceptable to proceed, the application will need to include a rezoning and a noise study and mitigation plan, in addition to the standard subdivision plan set (grading, drainage, utilities, landscaping, etc.).  Additionally, the City-owned drainage and utility easement may need to be vacated or altered, pending MNDOT review.  The preliminary review of the drainage easement indicates that it is needed in some form and additional analysis for keeping, relocating, and/or adjustment will be necessary. 

Alternatives to Consider:
1.  Keep the B-1 zoning in place, or at least for some time.
2.  Proceed with the rezoning and plat process.
 

Staff is not making a recommendation. 

The Planning Commission reviewed the sketch plan and discussed the potential rezoning at its meeting on October 29 (draft minutes are attached to this case).  The Commission supported (6 -1) the rezoning while noting the challenges of this being a commercial site.  One member expressed a desire to keep it commercial as the recent uncertainty regarding Highway 10 construction has only just settled.  If the residential use is acceptable to the Council, please provide any comments on the sketch plans so that they can submit a Land Use Application in the upcoming months.  

The Planning Commission and City Council previously reviewed this question in 2020 and passed the attached resolution noting that it will remain a commercial site per the original Planned Unit Development (PUD).  That resolution and minutes are attached to this case.

Provide any feedback to the applicant.