Review Resubmitted Concept of Shade Tree Cottages and Discuss Requested Cost Share for Potassium Street; Case of Shade Tree Communities

Shade Tree Communities has contacted the City and expressed a desire to resubmit a proposed plat known as Shade Tree Cottages. This is a project that went through City review approximately ten (10) years ago and received final plat and site plan approval as well as a zoning amendment to rezone the parcel to Planned Unit Development (PUD). The project is a mix of small-lot single-family and detached townhomes (villas/detached single-family with HOA maintenance). While the final plat and site plan have expired, the zoning of PUD has not. The applicant has submitted a revised concept plan taking into account current zoning regulations.

The applicant would like to discuss and receive feedback from the City Council regarding sharing the costs of upgrading Potassium Street. Potassium Street is currently a gravel road and would need to be paved as part of this development project. Unlike other recent projects, this planned development does not advance other City planning priorities such as a future business park and Potassium Street is not a collector road serving multiple major neighborhoods. There is, however, a benefit in the sense of ongoing maintenance for paving the road.

PUD Information:
While the final plat and site plan have long since expired, the approval of the Zoning Amendment to Planned Unit Development is still valid as the City never considered a subsequent Zoning Amendment to revert back to the underlying Zoning District of R-1 Residential (MUSA). Staff has verified with the City Attorney that the project must go through the subdivision process again, due to expiration of the original plan and changes to regulations. Specifically, current standards related to lot depth and wetland setbacks are considerably different than when the proposed development was originally designed.

The applicant has submitted a revised concept plan that better complies with current regulations. For example, the applicant is attempting to account for the current 16.5 foot wetland setback and has adjusted roadway alignments to reflect adjacent property owner's lot boundaries. In reviewing the concept plan, Staff found several deviations from the current R-1 (MUSA) regulations. Specifically, lots 8 and 9 do not appear to meet lot depth requirements and staff would recommend removing these lots to provide additional green space for the subdivision. Additionally, it is unclear whether Lots 32 & 33 comply with the lot depth requirements and it appears that there would be wetland impacts to provide access to these proposed lots.  The proposed net density appears to meet code requirements at approximately 2.7 units per acre. The code also requires 16.5 foot wetland setbacks, which appear to be met.

The applicant has stated that the public purpose for the PUD would be extra protection of extensive wetlands, trees, and open space. The HOA would also guarantee architectural standards set at the beginning of the project and maintain them and the landscaping and open spaces. There would also be public trails through the site.

Staff hosted a public workshop regarding the project on February 1, 2018. Neighboring landowners attended the meeting and raised questions regarding dewatering of the wetland, utilities, infrastructure upgrades, and mitigating the impacts to surrounding property owners. The Planning Commission was introduced to this topic on March 1, 2018 and again on May 3, 2018.

Discussion Tonight:
Estimates from the Engineering Department  and the applicant's engineer, North Pine Aggregate, estimate $300-$350 per linear foot for the paving which includes sidewalks, sewer, water, and a contingency of 25%. There will likely also be issues that arise during the planning process due to the number of wetlands onsite. At 1,000 linear feet, the project would cost approximately $300,000 - $350,000 including contingency. Staff would like to discuss three possible funding solutions for the upgrading of Potassium Street:

1. 1/3 paid by applicant, 1/3 paid by City, 1/3 paid by assessments (~$120,000 each)
2. 60% paid by applicant ($210,000) and 40% paid by City ($140,000)
3. No City contribution (applicant pays $350,000)

Staff notes that these are estimates, and that actual paving costs cannot be determined without a full wetland delination and engineering plans.  Currently, the wetland delineation for this project is not complete at this time. This will need to be completed for a complete application.

Staff notes that this road is not a collector road and that strictly single-family residential projects typically pay 100% of development costs. Additionally, while this project is not an economic development project, it would be improving a gravel road, reducing regular maintenance costs.

Staff is handling this portion of the review as part of normal Staff duties. The Developer is requesting assistance with improvements to Potassium Street and would like feedback before submitting a formal application.

Regarding the requested cost-share for Potassium Street, Staff would only recommend the following two (2) alternatives. Staff would not recommend a cost split of 60% City, 40% Developer. The recommended alternatives (if there is to be a cost split) are as follows.

1. 33% Developer, 33% assessed to other benefiting property owners, 33% City.
2. 60% Developer, 40% City (in the event there is lack of support from other benefiting property owners).

The Planning Commission is generally supportive of this updated concept, with changes outlined in the minutes from the May 3 Planning Commission Meeting. Of key discussion, the Planning Commission recommended elimination of Lots 8 and 9 due to lack of lot depth and impacts to wetlands.

No action requested. The intent is to provide high-level direction and discussion so that the Developer can make an informed decision whether or not to move forward with the project.