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CPED STAFF REPORT Prepared for the Zoning & Planning Committee January 5, 2021 PLAN11989 LAND USE APPLICATION SUMMARY Property Location: 525 Malcolm Avenue Southeast Project Name: Malcolm Yards Temporary Parking Lot Prepared By: Aaron Hanauer, City Planner, (612) 673-2494 Applicant: The Wall Companies, Jeff Ellerd Project Contact: Jeff Ellerd Request: To establish a temporary surface parking lot on the property located at 525 Malcolm Avenue Southeast Dwelling Units N/A Non-Residential Uses Temporary surface parking lot Required Applications: Interim Use Permit Temporary principal parking facility SITE DATA I2/Medium Industrial District Existing Zoning UA/University Area Overlay District Lot Area 232,392 square feet / 5.33 acres Ward(s) 2 Neighborhood(s) Prospect Park – East River Road Future Land Use Production and Processing Goods and Services N/A Corridor Built Form Transit 15 Date Application Deemed Complete December 7, 2020 Date Extension Letter Sent N/A End of 60-Day Decision Period February 5, 2021 End of 120-Day Decision Period N/A Department of Community Planning and Economic Development PLAN11989 BACKGROUND SITE DESCRIPTION AND PRESENT USE. The entire Malcolm Yards area is approximately 20 acres of land. It is located north of the University of Minnesota Transitway and just to the west of Surly Brewing. Malcolm Avenue serves as the eastern boundary and 29th Avenue Southeast is the western boundary. The entire Malcolm Yards site was replatted and the first phase of redevelopment of Malcolm Yards – a three-building, planned unit development (PUD) of the southern 3.62 acres - was approved in 2019 (with an amendment in 2020) that includes the renovation of Malcolm Yards Market, an 18,000 square foot urban food hall (Building A), construction of a 7- story, 184-unit, mixed-use commercial/market rate multifamily residential building (Building B) and a 7-story, 164- unit, 100% affordable, multifamily rental housing building (Building C). SURROUNDING PROPERTIES AND NEIGHBORHOOD. The immediate surrounding area is an industrial area near the University of Minnesota. There are multiple residential and mixed-use developments that have been approved and/or under construction on the south side of the University of Minnesota Transitway and north of University Avenue in recent years. PROJECT DESCRIPTION. Wall Development Company (WDC) is requesting approval of an interim use permit for a temporary surface parking lot as part of its Malcolm Yards redevelopment project in the Prospect Park Neighborhood. The proposed temporary parking lot is intended to be used by Malcolm Yards Market users and 2 Department of Community Planning and Economic Development PLAN11989 construction workers. The interim use permit is requested for a period of three years. Conversion of the existing Harris Machinery building into Malcolm Yards Market is expected to be completed in March 2021, at which time it will need to be served by the proposed surface lot. Construction of Building B is expected to begin in Summer 2021, with completion anticipated in Spring 2023. Construction of Building C is expected to start in Spring 2022 and be completed in early 2024. The proposed parking lot would be constructed on Lot 3 of the plat, north of the PUD area. It would be approximately 31,620 square feet (120’ X 263.5’) in area and accommodate 112 cars. A temporary access road will be constructed from the north end of the extension of 30th Avenue SE. The lot and the temporary access roads are proposed to be constructed by grading the existing dirt and gravel surface, compacting with a roller and surfacing with gravel/recycled concrete. The surface will be constructed such that it can be plowed in the winter and can be maintained during freeze/thaw periods. The access roads and the perimeter of the parking lot will be demarcated with bollards/posts and a single strand of chain/wire to ensure visibility and to define the route of travel. The parking lot will also have bollards and chain to demarcate the central parking rows and stalls and temporary lighting is also proposed throughout the parking lot. RELATED APPROVALS. Planning Case # Application(s) Description Action To allow for a Amendment to PLAN11497 planned unit Approved (10.5.20) PLAN8040 development To allow for a Rezoning, CUP, Variance, PLAN8040 planned unit Approved (2.11.19) Site Plan Review, and Plat development PUBLIC COMMENTS. As of the publication of the staff report, no public comments were received. Any correspondence received after the publication of the staff report and prior to the public meeting will be forwarded on to the City Council for consideration. ANALYSIS INTERIM USE PERMIT For an interim use permit to be granted, the Zoning and Planning Committee must make the same findings that pertain to conditional use permits. In addition to these, any City Council approval of an interim use is subject to five additional conditions. Discussion of each of these findings and conditions follows. 1. The establishment, maintenance or operation of the interim use will not be detrimental to or endanger the public health, safety, comfort or general welfare. An interim parking lot for three years will not be detrimental to or endanger the public health, safety, comfort or general welfare. As noted by the applicant, providing an interim parking resource during construction of the Malcolm Yards project is needed for the development of the Malcolm Yards Market and other parts of the project. The parking lot will alleviate current parking needs in the area, which will be beneficial to Surly Brewing and other area businesses, as well as to the mixed-use developments south of the University Transitway. 3 Department of Community Planning and Economic Development PLAN11989 2. The interim use will not be injurious to the use and enjoyment of other property in the vicinity and will not impede the normal and orderly development and improvement of surrounding property for uses permitted in the district. The temporary parking lot will not be injurious to the use and enjoyment of other property or impede development and improvement of surrounding property. The lot will be set back approximately 400 feet from Malcolm Avenue and surrounded by vacant land and grain elevators. It will be screened from view from the south by the Market Yards Market building. The temporary lot will facilitate the development of Phase 1 of Malcolm Yards. 3. Adequate utilities, access roads, drainage, necessary facilities or other measures, have been or will be provided. Other than electricity for lighting, which will be provided, no utilities or other facilities will be required for the operation of the parking lot. The site will be graded to drain to an existing stormwater storage pond. Access will be provided by a temporary connection to 30th Avenue SE. Public Works will review grading and details of the new temporary road connection. 4. Adequate measures have been or will be taken to minimize traffic congestion in the public streets. Traffic associated with Phase 1 of Malcolm Yards was studied as part of the environmental review for that project. The temporary lot will reduce traffic congestion during the construction of the project by providing off-street parking. 5. The interim use is consistent with the applicable policies of the comprehensive plan. The Malcolm Yards planned unit development was approved under the Minneapolis Plan for Sustainable Growth. The PUD is also consistent with many policies of the Minneapolis 2040 Plan, including those related to flexible development in Innovation Districts, access to housing affordable housing, adaptive reuse of historic and industrial buildings, access to goods and services, creation of open space and park amenities., and development near METRO stations. The temporary parking lot is consistent with these 2040 Plan policies as it will facilitate the development of the PUD, provide parking needed for the successful startup of Malcolm Yards Market and mitigate development impacts on neighboring properties. Future Land Use Guidance Staff Comment Production Production Mixed Use is a land use The project complies with the Mixed Use designation that allows both production production mixed use future land and non-production uses, recognizing that use guidance by converting the while many buildings in these areas are no Malcolm Yards building into a food longer viable for modern production hall building that will have industries, they are increasingly occupied production space, having by a wide variety of uses that contribute to commercial/office space in the economic health and diversity of the another building and residential city. Residential uses are allowed as part of units in two buildings. mixed use buildings that provide production space and must incorporate mitigation strategies to address potential conflicts between existing production uses and new residences. Adaptive re-use of older industrial property is encouraged. Built Form Guidance Staff Comment Guidance 4 Department of Community Planning and Economic Development PLAN11989 Transit 15 New and remodeled buildings in the Transit The overall Malcolm Yards project 15 district should reflect a variety of complies with the Transit 15 Built building types on both moderate and large Form Guidance as the two sized lots. Building heights should be 4 to proposed buildings would be 15 stories. Building heights should be at seven stories. least 4 stories in order to best take advantage of the access to transit, jobs, and goods and services provided by the Transit 15 district. Requests to exceed 15 stories will be evaluated on the basis of whether or not a taller building is a reasonable means for further achieving Comprehensive Plan goals. The proposed interim use would be consistent with the applicable guidance and policies of Minneapolis 2040 (2020) as the recently approved Malcolm Yards Phase I development is envisioned as a catalyst for development in the area: Policy 2. Access to Employment: Support employment growth downtown and in places well-served by public transportation.

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