Agenda - Planning Commission - 12/04/2014

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7.03: Consider Adopting Ordinance #14-14 Amending City Code Section 117-118 Entitled The COR Amending Minimum Floor Area Ratio and Maximum Parking Requirements in The COR-1 Sub -District Community Development Director Gladhill reviewed the staff report and described the impact of amending the minimum Floor Area Ratio (FAR) and maximum parking requirements in The COR- 1 District. It was noted the Council had introduced this ordinance at its October 28, 2014, meeting. Community Development Director Gladhill reviewed the analysis of the Planning Commission to assure any change was based on solid facts and figures, address visual aesthetics, and recommendation to postpone the amendment to allow time to circle back to the financial piece as it has been indicated that a structured parking ramp will result in rental rates that cannot be sustained in this market so that project would not be successful. Community Development Director Gladhill presented alternatives for the Council's consideration and resulting impact of each. City Administrator Ulrich stated staff has consistently received Council direction to encourage land sales and reduce/eliminate project subsidizes. He indicated that embarking on this minor zoning change would accomplish that direction and provide a site that supports what the market demands. He stated the market in Ramsey is probably not at the point of supporting a project with structured parking and higher rents without public subsidy. Councilmember Backous stated when the overpass project starts, he thinks it will have a significant impact on the market in that area. He asked if that has been considered in the assumptions. City Administrator Ulrich stated the market price placed on this land reflects the current reality that there is an interchange in the works within two years or less. He stated he thinks there will be a value change for property that is immediately adjacent to the interchange as access is key for retail sites but it may have a lesser impact on residentially zoned property. In addition, this property meets the criteria of being within the immediate vicinity of the Transit Station. Councilmember Backous stated he is a big proponent of selling all the City -owned land but, in this case, thinks the price of the property will increase when the ground breaks for the Armstrong Boulevard interchange project. Brian Pankratz, CBRE, stated part of it is market demand and he hopes there will be demand created from the Armstrong Boulevard interchange but from a retail perspective, the demand is rooftops and demographics, ease of development, and working together. Mr. Pankratz stated the interchange is one thing that will create demand as will a change in FAR. He noted the City still has control over design so the project will meet The COR's general standards. In addition, if this project goes well it may attract another project. Mayor Strommen agreed that the demand for rental units, parking structure, interchange, and development requirements all influence the project and asked which would be the major factor.