Adopt Resolution #26-248, Approving a Site Plan Review for a Mixed-Use Building at 7782 Sunwood Drive NW (Elevate Hope House)

Elevate Hope House (the "Applicant") has submitted a Land Use Application for development of a 0.52-acre parcel in the COR, located at 7782 Sunwood Drive NW and legally described as Outlot B, COR Stone Brook Academy (the "Subject Property"). The Applicant submitted architectural plans from Thielen & Green and civil plans from Plowe Engineering, Inc. The project will consist of approximately 5,700 square feet of commercial space geared toward community gathering, co-working, office, meeting space, and a coffee shop, plus three apartment units on the second floor, situated along Sunwood Drive on the north end of the site. The site is zoned COR-1 and guided for Mixed Use in the City's 2040 Comprehensive Plan. The Applicant is working with the City's EDA to purchase the site for the proposed development. To accommodate the proposed development, the Applicant is requesting a Minor Subdivision (to convert the property from an outlot to a buildable lot of record, a separate action located on tonight's consent agenda) and a Site Plan Review (to construct the building and site improvements).

This site was previously approved for a similar project by Storyteller Cafe, though that project eventually expired and the City regained ownership of the property.  Elevate Hope House came forward with their own development proposal that has a similar residential density and commercial space, but it has several distinct architectural and site changes and improvements.

Staff attempted to notify property owners within 350 feet of the Subject Property, as reflected in the Anoka County Property Records, of the request and the Public Hearing held by the Planning Commission on October 29th. A notice of the Public Hearing was published in the Anoka County UnionHerald, the City's official newspaper. A "proposed development" sign was placed on the property along Sunwood Drive.

Subject Property
The Subject Property is located in the COR, bounded by Sunwood Drive to the north, Yolite Street to the west, Veterans Drive to the south, and Sunwood Village to the east. The Subject Property is currently platted as an outlot within the COR Stone Brook Academy plat.  The Subject Property is zoned COR-1, which allows for mixed-use development consisting of several commercial uses and high-density residential between 5 and 15 units per acre. It is guided for Mixed Use in the City's 2040 Comprehensive Plan, as are other surrounding properties in the COR. The proposed building will contain three residential units and approximately 5,700 square feet of commercial space. The proposed density is 5.76 units per acre, which is in conformance with the Comprehensive Plan. This building will only be the fourth instance of vertical mixed-use development in the COR, with the first three instances being The Residence at the COR Apartment Homes (7700 Sunwood Drive NW), Skyline on Sunwood (7545 Sunwood Drive NW), and The Sinclair by Roers (7979 Sunwood Drive NW, currently under construction).

Site Plan
The proposed building has a footprint of approximately 5,700 square feet (25.12% lot coverage). The building is rectangular-shaped, similar to the lot it will be built upon, with the building facade positioned closest to Sunwood Drive and Yolite Street. In lieu of the building facade being located within 20 feet of the Sunwood Drive right-of-way line, the site plan includes a large sidewalk patio along the front edge of the building, surrounded by a decorative fence that will run along the north property line for about 45.8 feet. When measuring the length of the 45.8-foot-long fence along Sunwood Drive, in comparison to the building width of 57 feet, it equals 80.35% of the building facade (or, in this case, an ornamental fence surrounding an outdoor seating area) within the 5-foot build-to line along Sunwood Drive. Additionally, though it is no longer required in accordance with Ordinance #26-16, the building also meets the build-to line requirement of 5 feet along Yolite Street by the inclusion of a second fence along the Yolite Street property line to define the edge of a secondary outdoor patio and small playground. The proposed development has approximately 72% impervious area, including the building footprint, parking lot, and outdoor patios, which is consistent with other developments in the COR.

The building is designed to have four main entrances: two secure entrances to the apartments on the second floor (one along the south wall, and one along the east wall, both connected to sidewalks leading to the parking lot south of the building) and two entrances to the commercial space on the first floor (one in the northwest corner to access the gathering space, and the other along the west wall to directly access the coffee shop). The north and west building facades are accented with outdoor patios to activate the storefront. The patios and the building are slightly elevated from the grade of the adjacent public sidewalks due to the site's existing elevation. In addition to the main entrances to the building, there are garage-style doors proposed along the north building facade, opening the indoor gathering space up to the north outdoor patio. There is also a service door along the south building facade to access the back-of-house space for the coffee shop. Vehicular access to the Subject Property will come from a driveway along Yolite Street. The building placement and landscape buffer are intended to screen the parking lot from all adjacent streets. Additionally, a trash enclosure will be located along the south edge of the building, using materials that complement the building facade.

The minimum parking requirements for apartment units are 1.5 stalls per unit. Additionally, retail shopping uses require one parking stall for each 200 square feet of floor space for retail uses under 20,000 square feet in area. Office spaces require one parking stall for each 300 square feet of floor space. Lastly, restaurants (including the coffee shop) have a minimum parking requirement of one stall per three seats of design capacity. Based on the proposed 3 apartment units, 16 seats in the coffee seating area, 12 seats in the outdoor patio area, 391 square feet of dedicated retail space for artist exposition sales, 445 square feet for office space, and 1,904 square feet of gathering space, a total of 27 parking stalls would be required. However, the Applicant submitted a parking narrative that explains their anticipated parking demand, which includes the following:

• 1 parking stall per apartment unit x 3 apartment units = 3 parking stalls
• 1 parking stall per coffee shop employee x 2 onsite employees = 2 parking stalls
  • Note: the intent of the skills training program is to employ the apartment residents at the coffee shop.
• 1 parking stall per 3 seats of restaurant seating capacity x 28 seats = 10 parking stalls
• 1 parking stall per 200 square feet of retail space (for the artist wares) x 391 square feet = 2 parking stalls
• 3 additional parking stalls for the office/break room area
• TOTAL: 20 parking stalls required (20 provided)

If general parking requirements exceed supply, there are several on-street parking spaces along Sunwood Drive and Veterans Drive to accommodate any overflow of retail customers or visitors.

Architecture and Building Elevations
The building will be two stories tall. The building's overall height (as measured from the finished floor elevation to the top of the parapet) is 26 feet. The building facade will consist of glass overhead doors along the north outdoor patio, and storefront windows and brick veneer along the first floor, plus lap siding along the entirety of the second floor. The building facade is designed with 52.8% brick veneer and exterior split face veneer, which meets the requirement that at least 50% of the total building facade not covered by windows consists of brick veneer, exterior split face block, or a similar material, as required by the architectural standards for the COR-1 district in the COR Framework. In addition to the building itself, the Applicant is proposing to install pergolas over the north outdoor patio, in line with the overhead doors.

Signage
As noted during the development and adoption of Chapter 108, Ramsey's Sign Code, signage in the COR will be reviewed and approved administratively. Staff will work with the Applicant as construction commences to review proposed signage for the residential and commercial components of the building.

Landscape Plan
The Landscape Plan was reviewed by the Environmental Policy Board (EPB) at their regular meeting on September 21st, 2026. The EPB recommended approval of the plan, contingent upon the resolution of Staff review comments.

Lighting Plan
Section 106-310 of City Code provides lighting regulations for all developments in the City. All photometric readings will measure less than 0.5 footcandles at the property line and will measure at least 1.0 footcandle throughout the parking lot in compliance with City Code.  All lighting must be downcast and shielded.

Utilities
The building will be connected to municipal water and sanitary sewer via stubs along Yolite Street on the west edge of the property.

Stormwater Management
All stormwater from the site will be directed into a network of pipes that flow into the large regional retention basin in Waterfront Park, then into the regional infiltration basin at the southeast portion of the COR. In lieu of constructing a storm water basin onsite, the Applicant will contribute the cost of constructing a storm water basin onsite into a fund to maintain the regional basin.

Plat
The application includes a Minor Plat that replats the existing outlot into a buildable lot that is being considered on tonight's consent agenda.  The proposed parcel conforms to the zoning requirements.  

Alternatives
Alternative 1: Approve the Site Plan, as requested by the Applicant and recommended by Planning Commission and Staff.
Alternative 2: Approve the Site Plan with modifications based on discussion.
Alternative 3: Deny the Site Plan based on supporting findings of fact.

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

The property is City-owned and the Applicant would be purchasing the property. Development fees will be calculated at the time of Development Agreement.

At their regular meeting on October 29, 2026, the Planning Commission voted unanimously to recommend approval of the Site Plan, as recommended by Staff.

Motion to adopt Resolution #26-248, Approving a Site Plan for a Mixed-Use building at 7782 Sunwood Drive NW.