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Home My WebLink About9.a. Request by Krause Anderson for an Amendment to the Planned Unit Development Agreement for South Robert Commons to allow the building to be temporarily constructed to 12,168 square feetAGENDA ITEM: Case 09- 08 -AMD; Request by Kraus Anderson for an Amendment to the Planned Unit Development Agreement for South Robert Commons to allow the building to be temporarily constructed to 12,168 square feet. AGENDA SECTION: New Business PREPARED BY: Eric Zweber, Senior Planner AGE DA NO. ATTACHMENTS: Site Map; Resolution; First Amendment to the Planned Unit Development Agreement; Concept Site Plan; Landscape Plan; Floor Plan; Exterior Elevations; Color East Elevation; Color North Elevation Temporary Wall APPROVED BY: 02) RECOMMENDED ACTION: Staff recommends that the City Council approve the First Amendment to the Planned Unit Development Agreement as requested by Kraus Anderson Realty Company through the two following motions: 1. Motion to adopt a Resolution approving a Minor Amendment to the South Robert Commons (Phase 1) Planned Unit Development Agreement for Kraus Anderson, Inc. 2. Motion to approve the First Amendment to the South Robert Commons (Phase 1) Planned Unit Development Agreement and authorize the Mayor and City Clerk to enter into the Agreement. 4 ROSEMOUNT CITY COUNCIL City Council Meeting Date: April 7, 2009 EXECUTIVE SUMMARY ISSUE On March 17, 2009, the City approved a plat, rezoning, and planned unit development agreement for Kraus And erson, Inc. to construct a 17,027 square foot commercial building that would house a Health Ea: t clinic as its first tenant. Kraus Anderson's bank has refused to finance the entire building with only 2 lease from Health East. Kraus Anderson has reached an agreement with their bank to fund the construction of the first 12,168 square feet of the building but also construct the entirety of the site improvements, such as the utilities, road improvements, demolition of the entire Genz -Ryan site, etc. Kraus Anderson would construct the remainder of the building upon the signing of a lease from a ten, ant. Kraus Anderson has requested a minor amendment to the planned unit development agreement to temporarily construct only the first 12,168 square feet of the building. SUMMARY After receiving the City's approval, Kraus Anderson has been informed by its bank that the requirements for pre -lease of space has increased. Before the financial crisis that the United States is currently in, banks typically loaned money to commercial developers with only 30% of the space pre leased. Currently, Kraus Anderson's only lease is with Health East for approximately 8,000 square feet, or approximately 50% of the originally approved 17,027 square feet building. With this lease, Kraus Anderson's bank is only willing to finance 12,168 square feet (71.5 of the building and all of the required site improvements. To reduce the building size, Kraus Anderson is proposing to temporarily not build the northern 4,869 square feet, approximately one quarter of the building. Health East has signed a lease for the southern half of the building because of the parking area for that portion of the building is located both to the west and to the south of building. The quarter of the building north of the Health East clinic will be lease space that will be available as soon as the building is constructed, and the northern most quarter of the building will not be constructed at this time and only constructed after Kraus Anderson signs a tenant to lease that space. Building Design and Materials Kraus Anderson has improved the design of building as a result of the conditions of approval for the original planned unit development. The EIFS areas between the south two columns and the north two columns has been removed on both the east and west facade and replaced with brick or stone. The other elements on the west, south, and east facades will be constructed exactly as approved in the original planned unit development. The foundation of the entire building will be constructed, with an additional foundation constructed for the temporary north wall, but the walls will only be built on the southern three quarters of the foundation. Because the foundation will be constructed completely, the northern quarter will be allowed to be built faster and in any weather once a lease for that space is signed. The biggest change is the treatment on the north facade's temporary wall. The north temporary wall will have the brick and stone on the east and west facades carried around the corners of the north facade for a width 3 feet 4 inches on each side. The middle portions of the north temporary wall is proposed to be predominately EIFS with five windows spaced evenly. The EIFS will be colored to match the brick and except for a color band that will match the stone ribbon that is carried throughout the other three facades. As was discussed on the March 17 City Council meeting, EIFS is not an allowed material for a permanent exterior facade, but the decision needs to be made on the proper material for a temporary wall. It is not practical to build a temporary brick and stone wall and then be able to move it at a later date in one piece and it is not cost effective to build a brick and stone wall and then remove it piece by piece, clean all the pieces, then assemble it again. This type of request is normally not considered during good economic times, but it is certainly documented in numerous newspaper and magazine articles that development is constrained by the new and often changing lending requirement. The only similar request that the City has addressed recently was the construction of the new St. Joseph's Church knowing that it would be years before the new school was attached to it. 2 During the original approval of the new St. Joseph's Church, the City required that all the permanent exterior walls be constructed of brick or stone, while the temporarily exterior walls which the school would abut five years later were allowed to be EIFS of a similar color to the brick of the church. Now that the school is being constructed, the EIFS on the church walls has been removed and the exterior walls of the new school will be completely brick or stone. Because of this precedence, staff is supportive of the request by Kraus Anderson to construct the temporary north wall predominately out of EIFS. Landscaping Kraus Anderson will be installing all of the landscaping from the original approval except the foundation planting that will not be installed around the missing north quarter of the building. In place of the north quarter of the building, Kraus Anderson is proposing to install four eight foot tall evergreens and sod and irrigate the area were the building would have been constructed. Staff proposes some minor changes to this proposal. Staff has added a condition that foundation planting be installed at the foundation of the temporary north wall and that a fifth eight foot tall evergreen be installed. In addition, the location and pattern of the evergreens should be modified to provide a more natural zigzag grouping pattern. Light The parking lot lighting will be installed as originally approved, as will the lights on the west, south, and east facade. On the temporary north wall, two sconce style light fixtures will be installed in each of the brick and stone corner columns, and a wall pack style light will be installed high on the middle of the wall to shine light onto the sodded area where the northern quarter of the building will go. The wall pack light was chosen to provide some security lighting for the new temporarily open area while not emphasizing the EIFS wall. Amendment to the Planned Unit Development Agreement To provide security to ensure that this is only a temporary situation, staff has prepared two conditions within the minor amendment and one condition within the resolution. First, the construction of the entire building as originally approved must be completed within five years. It is in the best interest of Kraus Anderson to build the entire building for the additional income, but this provides the City some legal authority to ensure that it happens. While we would not likely sue Kraus Anderson if they do not meet this requirement, we can deny building permits or other City approval until it is completed. As a fall back, the second condition has been prepared. Second, the waiver to allow the EIFS expires five years after the approval. If Kraus Anderson does not construct the entire building within five years, and the City does not choose to sue them, the City can require that the EIFS be removed and that brick and stone be installed in its place. Third, the condition within the resolution is that the purchase agreement between the Port Authority and Kraus Anderson be modified to prohibit Kraus Anderson from constructing the building on Phase 2 until the building is completely constructed on Phase 1. 3 Access, Mechanical Equipment, Parking, Pedestrian Circulation, Signs, Site Layout, Trash Enclosure, and Utilities There are no changes to the access, mechanical equipment, parking, pedestrian circulation, signs, site layout (aside from the temporary reduction of building size), trash enclosure, or utilities due to the Kraus Anderson request. RECOMMENDATION Staff recommends approval of the Minor Amendment to the Planned Unit development Agreement with the conditions included within the Resolutions and authorizing the Mayor to sign the Minor Amendment. 4 CITY OF ROSEMOUNT DAKOTA COUNTY, MINNESOTA RESOLUTION 2009 A RESOLUTION APPROVING A MINOR AMENDMENT TO THE SOUTH ROBERT COMMONS (PHASE 1) PLANNED UNIT DEVELOPMENT AGREEMENT FOR KRAUS ANDERSON, INC. WHEREAS, the City of Rosemount has received an application from the Kraus Anderson, Inc. requesting a minor amendment to the South Robert Commons Planned Unit Development Agreement concerning property legally described as: Lot 1 Block 1 of South Robert Commons, Dakota County, Minnesota; and WHEREAS, the amendment would allow Kraus Anderson to temporarily construct only the first 12,168 square feet of the building; and WHEREAS, upon Kraus Anderson signing leases for the entire 17,027 square feet of the original approval, Kraus Anderson will complete the construction of the entire building, and WHEREAS, staff finds the proposed amendment is eligible for a minor amendment and administrative approval because it does not violate any of the six criteria listed in Section 11 -10 -6 of the City Code related to determining major and minor PUD amendments, and WHEREAS, staff finds the construction of the permanent portions of the building meet or exceed the standards contained in the original PUD and that the design of the temporary north facade is consistent to that approved for the temporary walls approved at the new St. Joseph's Church, and WHEREAS, on April 7th, 2009, the City Council of the City of Rosemount reviewed the application and staff's recommendations. NOW, THEREFORE, BE IT RESOLVED, the Council of the City of Rosemount hereby approves a Minor Amendment to the South Robert Commons (Phase 1) Planned Unit Development Agreement for Kraus Anderson, Inc., subject to conditions: 1. Execution of a PUD amendment agreement. 2. An amendment to the purchase agreement with Kraus Anderson is executed to prohibit the construction of the building on Phase 2 before the building on Phase 1 is completely constructed. 3. Installation of foundation plantings at the foundation of the north temporary wall. 4. Installing a fifth eight foot tall Colorado Blue Spruce tree on the north side of the temporary wall and aligning the five threes in a more natural looking zig -zag pattern. ADOPTED this 7th day of April, 2009, by the City Council of the City of Rosemount. ATTEST: Amy Domeier, City Clerk William H. Droste, Mayor RESOLUTION 2009- Motion by: Second by: Voted in favor: Voted against: Member absent: 2 FIRST AMENDMENT TO THE SOUTH ROBERT COMMONS (PHASE 1) PLANNED UNIT DEVELOPMENT AGREEMENT THIS DECLARATION made this day of 2009, by and between Kraus Anderson, Inc., a Minnesota Corporation, (hereinafter referred to as the "Declarant and the CITY OF ROSEMOUNT, a Minnesota Municipal Corporation (hereinafter referred to as the "City WHEREAS, the Declarant is the owner of the real property described as Lot 1, Block 1, South Robert Commons, Dakota County, Minnesota, (hereinafter referred to as the "Subject Properties and WHEREAS, the Subject Property is subject to a Planned Unit Development Agreement, "South Robert Commons (Phase 1) Planned Unit Development Agreement" dated April 2009, and recorded with the Dakota County Recorder as document number on 2009 (hereinafter referred to as the "Planned Unit Development Agreement and WHEREAS, the Declarant wishes to amend the Planned Unit Development Agreement as hereinafter provided, which amendment has been approved and consented to by the City of Rosemount, acting through its City Council, as evidenced by the duly authorized signatures of its officers affixed hereto. WHEREAS, the Declarant is unable to secure full funding to construct the entire building with the only the pre -lease of space to Health East and wishes to temporarily construct only 12,168 square feet of the originally approved 17,027 square foot building. NOW, THEREFORE, the Declarant declares that the Subject Property is, and shall be, held, transferred, sold, conveyed and occupied subject to the covenants, conditions, and restrictions, hereinafter set forth. 1. The use and development of the Subject Property shall conform to the Planned Unit Development Agreement except as modified herein. 1 A. City Resolution No. 2009 Attachment One B. Concept Site Plan Revised 04/01/2009, Attachment Two, shall replace Concept Site Plan Revised 03/12/2009 C. Landscape Plan Revised 04/01/2009, Attachment Three, shall replace Landscape Plan Revised 03/12/2009 D. Floor Plan Revised 04/01/2009, Attachment Four, shall replace Floor Plan Revised 03/12/2009 E. Exterior Elevations Revised 04/01/2009, Attachment Five, shall replace Exterior Elevations Revised 03/12/2009 F. Color East Elevation Dated 04/01/2009, Attachment Six, and Color North Elevation Temporary Wall Dated 04/01/2009 shall replace Color Elevation Revised 03/12/2009 G. A waiver from City Code Section 11 -4 -11 G. 1. Building Design Standards shall be allowed for the North Temporary Wall to allow the use of EIFS as illustrated in the Exterior Elevations Revised 04/01/2008 and the Color North Elevation Temporary Wall Dated 04/01/2009. 2. Except as modified by paragraph 1 of this Amendment, the Planned Unit Development Agreement shall remain in full force and effect. 3. The obligations and restrictions of this Amendment run with the land of the Subject Property and shall be enforceable against the Declarant, its successors and assigns, by the City of Rosemount acting through its City Council. This Amendment may be amended from time to time by a written amendment executed by the City and the owner or owners of the lot or lots to be affected by said amendment. 4. The Declarant shall construct the full building as described in the Planned Unit Development Agreement within five (5) years of the date of the approval of this Declaration. 5. The wavier from City Code Section 11 -4 -11 G. 1. Building Design Standards as described in Paragraph 1 G. shall expire five (5) years from the date of the approval of this Declaration. 6. Upon completion of the construction of the full building as described in the Planned Unit Development Agreement this Declaration shall terminate and be of no further force or effect and the City shall record such documents in recordable form as are necessary to terminate this Declaration. 2 IN WITNESS WHEREOF, the undersigned as duly authorized agents, officers or representatives of Declarant have hereunto set their hands and seals as of the day and year first above written. STATE OF MINNESOTA COUNTY OF ss. Corporation, by and on behalf of said corporation. DECLARANT Kraus Anderson, Inc. By Bruce Engelsma Its President The foregoing instrument was acknowledged before me this day of 2009, by and the and for and on behalf of the Kraus Anderson, Inc., a Minnesota 3 Notary Public This Amendment is approved and consented to by the City Council of the City of Rosemount. CITY OF ROSEMOUNT By: William H. Droste, Mayor STATE OF MINNESOTA ss. COUNTY OF DAKOTA The foregoing instrument was acknowledged before me this day of 2009, by William H. Droste and Amy Domeier, the Mayor and City Clerk, respectively, for and on behalf of the City of Rosemount, a Minnesota corporation, by and on behalf of said corporation. THIS INSTRUMENT WAS DRAFTED BY: City of Rosemount 2875 145 Street West Rosemount, MN 55068 651- 423 -4411 4 And by: Amy Domeier, City Clerk Notary Public CONCEPT SITE PLAN A -1.1 A e s t R SOUTH ROBERT COMMONS PHASE 1 KRAUS ANDERSON REALTY COMPANY SOUTH ROBERT TRAIL LOWER 147TH STREET ROSEMOUNT, MINNESOTA u. inn daniels A R C H I T E C T S hand 5°.. syn i�P.µ w.wao Sane Parkway, Wee 301 65 Fax 590.5543 h SnrrdaNekeaa Cl O z m A N m A r D z 0 CO /A —I m r 0 0 z 3 ,o R A z (P z 3f ilE 3 re J ee C P CO z i pp o E 112 D r O 21 m a F 1NIOr 102:11N00 I I "5 1 STELLA DE ORO DAYLILY SL E EnZTE DT S Ci 00000 s a i s X SOUTH ROBERT COMMONS PHASE 1 KAUS ANDERSON REALTY COMPANY R SOUTH ROBERT TRAIL LOWER 147TH STREET RO MINNESOTA NINUOS 0 UNOCRSTONI .1. 533111. 1 Ad:1 015 53100 WW1 0.00n000 00 WAND° LANDSCAPE SCHEDULE 2145 55118 Sam Fa �.une X 551580.5552 Fax 5903645 .aiaia.cam .wxm apa ..n tee. oo� fi ATIT FE..7 a SS P NO. 3 CONT. NO. 5 CONT. NO. 5 CONT. 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IRE ORNAO CV. 15 SOO EXCEPT IN PLANING. NW PLANTING AREAS SHALL BE MET NM 5 MACK MN MONO ANO HAN DEEP 15.11.0.1 PLACED OVER A WE BARRIER FAWN MACH RN AND NNE MALL BE 1 1/2 ROCA MIL. (TYPE 10 BE SELECTED). AL TRIES NOT PLACED NNW A PLANTND BED SMALL HAN A FOOT 01.NR. 5 NOI DEEP SWUM NAROWNO MILER OIM NSTALLE0 ANON.° DIE TREE. ALL RETAMND WALLS TO BE CESCRED OE ODOM NL ARFAS MAIN TRE PROPERTY MAT ME NOT SHRUB BEDS OR HMO SURFACE° EXCEPT AS NOTED MALL ES SOLOED. ALL ARM OUTSIDE TS PROPERTY LINES DISMINE0 Br ITRAONO OR OWN INSTALLATION MALL BE 001001400 TO DWAIN CCANDON CR BETTER OR AS NOW. MENLO A PLANT BE UNAVAILABLE AT ME INS Cf NSTALLAWN. %WANTONS MN SUBJECT TO ME APPROVAL Of ME ONSTI AM ME OW. AMY ENSTINC WLETATION 70 BE RENON° FROM IRE SITE MAL DE NSPOSEO Cr N A TAMER MAT IS APPLWDLE OTY MO STATE RENAREMENTS. 070 MOWERS CRANK AND VERITY P1005 301 EXACT LOCA1MRS Or MAW, FENCES. RETAINNO WALLS AND P100100010010 670310107 700113 AT.4 047iIIZI7ZON SMIZA14. 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