REQUEST FOR COUNCIL ACTION Date: August 24, 2020 Item No.: 7.c Department Approval City Manager Approval Item Description: Consider Adopting an Ordinance cancelling Planned Unit Development #3608 and #15-018 affecting portions of Rosedale Center (PF20-018) 1 ROSEDALE DEVELOPMENT BACKGROUND 2 On January 13, 2020, the Planning Division brought forward an update regarding the proposed 3 major improvements being sought by Jones Lang LaSalle (JLL) for Rosedale Center, which 4 included notice of the developer’s intent to cancel the Planned Unit Development approvals 5 impacting the project area. The proposed improvements at Rosedale Center, in part, are being 6 driven by the vacancy of Herberger’s, however the project scope reaches much farther than this 7 area of the mall as the owner attempts to reinvent the property to ensure long-term survival from 8 the traditional shopping mall that has become outdated. 9 JLL is working towards advancing improvements that consist of the following: 10 • Demolition of the existing Herberger’s arm of the mall 11 • Conversion of the ring road from one-way to two-way (except at the Fairview AVE access) 12 • Introduction of housing, including approximately 350 market-rate units and approximately 13 212 active adult (age restricted) units 14 • Two hotels encompassing up to 290 rooms (buildings of 165 rooms and 125 rooms, stand- 15 alone structures at southern periphery of property) 16 • Up to 100,000 SF of office (including medical) 17 • Up to a net increase of 220,000 SF of commercial (could include entertainment, restaurant, 18 grocery, and retail uses) 19 • New parking structures (both stand-alone & within lower levels of new buildings) 20 Based on the information bulleted above, a mandatory Environmental Assessment Worksheet 21 (EAW) was required in accordance with Minnesota Administrative Rules, Chapter 4410.0500. 22 This determination was made because the total number of attached housing units exceeds 375 23 (4410.4300, subp. 19) and the project meets the threshold under “mixed residential and industrial- 24 commercial projects” (4410.4300, subp. 32). Table 3 of the EAW outlined permits and approvals 25 that are anticipated to be required, including cancellation of the existing Planned Unit 26 Development approvals. 27 On May 4, 2020, the City Council approved a resolution making a negative declaration on the need 28 for an Environmental Impact Statement and on June 9, 2020, the Environmental Quality Board 29 (EQB) accepted the publication submission of the City’s decision. The decision was published on Page 1 of 4 30 June 15 in the EQB Monitor, thus completing the City’s environmental review process for the 31 proposed expansion plans at Rosedale Center. 32 PLANNED UNIT DEVELOPMENT HISTORY AT ROSEDALE 33 In January 2000, the Roseville City Council amended the Shopping Center (SC) zoning district to 34 include more detailed site development standards to address 24 hour uses within 300 feet of 35 residentially zoned property. In addition, as of January 1, 2000, the amendment established each 36 retail site zoned SC, and its existing site plan, to be a planned unit development. 37 In February 2004, the Shopping Center requirements were amended by ordinance #1304. This 38 amendment redefined the floor area ratio of occupiable building to land area as 1.0. (1 square foot 39 of building to1 square foot of land area). It also provided for a height of 3 stories above the main 40 entry level. 41 In May 2005, the City Council approved Planned Unit Development (PUD) Agreement #3608 in 42 support of The Plaza, a 123,708 sq. ft. lifestyle retail/restaurant addition and 58,678 sq. ft. 43 (estimated) 14 screen AMC movie theater that replaced the former Mervyn’s of California. This 44 PUD was necessary because of the SC requirement for a PUD and due to the absence of zoning 45 requirements or standards to guide the development. PUD #3608 effectively acted as a 46 development contract between JLL and the City, which included the following items: 47 • Site Development Plan (property boundary, building setbacks, structure location-including 48 trash enclosures, curbing, parking stalls, parking setbacks, and proof of parking) 49 • Amended and Restated Transit Hub Agreement (original dates to 1991) 50 • Grading and Ponding/Storage Plan (existing and proposed grades after completion of 51 project, drainage directions, spot elevations, catch basins for surface water catchment, 52 ponds, and erosion control plan) 53 • Utility Servicing Plan (sanitary sewer, water mains and hydrants, storm sewer, pipe sizes, 54 line locations, manhole locations, hydrant locations, and other applicable utility plan 55 information) 56 • Landscape Plan (materials list, sizes, and locations of all plant materials) 57 • Building floor plans with dimensions of the facility 58 • Building elevations with dimensions and materials identified 59 • Anticipated site development schedule with estimated date of construction start, 60 construction completion, utility, curb, gutter and landscape installation, and tentative 61 occupancy date of June 2, 2005 62 • Public Improvements Contract (stipulating all requirements, terms, easements, and 63 conditions with respect to public improvements including any utility, roadway, pathway, 64 storm water ponding, and boulevard restoration) 65 • Snow Storage and Management Plan (including staging locations for temporary snow 66 storage and the manner in which snow is transferred to the melting machine) 67 In December 2010, the City Council adopted a new zoning code, which included numerous design 68 standards and development requirements, and eliminated the planned unit development and the 69 requirement surrounding shopping centers being planned unit developments. 70 In 2015, the City Council approved PUD Agreement #15-019 in support of the approximately 71 141,000 square foot Von Maur department store, a 450-stall parking deck, and two, two-story 72 out-parcel buildings that may be constructed on the commercial pads of 5,000 and 7,500 Page 2 of 4 73 square feet respectively. This PUD was required due to a portion on the land for the new 74 department store being contained in the previous (2005) PUD geographic area and to specify 75 design and development requirements. 76 PUD#15-019 also effectively acted as a development contract between JLL and the City for 77 specific site and development improvements in support of Von Maur and two out-parcel 78 developments. This PUD included the following plans: 79 • Site and development plans for both the ground level and deck level designs 80 • Parking garage elevations 81 • Final utility servicing plan 82 • Final site plan 83 • Final grading plan 84 • Roadway improvement plans 85 • Access, circulation, and parking plan 86 • Pedestrian connection plan. 87 On April 11, 2016, the City Council adopted Ordinance #1497 creating new regulations for 88 planned unit developments, which includes specific guidance for cancelling an existing PUD. 89 PLANNED UNIT DEVELOPMENT CANCELLATION REVIEW 90 §1023.11 PUD Cancellation reads: A PUD shall be cancelled and revoked only upon the City 91 Council adopting an ordinance rescinding the overlay district or special use permit establishing 92 the PUD. Cancellation of a PUD shall include findings that demonstrate that the PUD is no longer 93 necessary due to changes in local regulations over time; is inconsistent with the Comprehensive 94 Plan or other applicable land use regulations; threatens public safety, health, or welfare; or due to 95 other applicable findings in accordance with law. 96 On behalf of Jones Lang LaSalle, attorney Jay Lindgren, Dorsey & Whitney, LLP, submits the 97 following in support of the PUD cancellations: 98 • Current zoning for Rosedale Center has been updated since PUD #3608 and PUD#15- 99 018 were established and the current zoning allows improvements and redevelopment 100 to Rosedale in an orderly manner consistent with the City's Comprehensive Plan. 101 • PUD #3608 and PUD #15-018 currently cover only a portion of the Rosedale Center 102 property which, in turn, means that portions of Rosedale Center are essentially zoned 103 differently than other portions because the overlay district only applies to a portion of 104 the site. 105 • As redevelopment occurs at Rosedale Center consistent with current City zoning, 106 amendment of PUD #3608 and/or #15-018 is or may also be required which adds an 107 unnecessary and additional step to the approval process. 108 Section 1023.10, paragraph B of the Zoning Code states that pre-existing PUD’s may be amended 109 by converting to the PUD overlay district (new PUD regulations enacted in 2016). This same 110 section states the process for this to occur is for the applicant to essentially apply for a new PUD, 111 starting with the PUD Concept Plan. Thus, whether the PUD’s remain in force or not, a new PUD 112 process must commence if changes occur within the geographic area covered by the previous 113 PUD’s. If the PUD’s are cancelled, then underlying zoning regulations of the Regional Business 114 district would apply. Page 3 of 4 115 Staff would also recognize that the recent adoption of the 2040 Roseville Comprehensive Plan 116 (Plan) will require the rezoning of Rosedale in support of the Core Mixed-Use land use designation 117 in the Plan. It is anticipated that specific design and development standards concerning the 2040 118 Plan will also be adopted into the Zoning Code. These Code amendments will direct and assist the 119 Planning Division with future projects at Rosedale Center, making the existing planned unit 120 developments obsolete and/or difficult to enforce. However, the timing of enacting the new 121 ordinance, rezoning to the Core Mixed-Use land use designation, and commencement of the 122 developer’s expansion plans may not align such that the expansion plans are governed under the 123 new Core Mixed-Use land designation/zoning.