1. CALL TO ORDER

The City of Apple Valley Planning Commission meeting was called to Order by Chair Tom Melander at 7:00 p.m.

Members Present: Tom Melander, Tim Burke, Jeannine Churchill, Thomas Helgeson, Frank Blundetto, David Schindler, and *Keith Diekmann

Members Absent: None

*Commissioner Diekmann arrived at 7:02 p.m.

Staff Present: Acting Community Development Director Tom Lovelace, City Attorney Sharon Hills, Associate City Planner Kathy Bodmer, Associate City Planner Margaret Dykes, and Assistant City Engineer Dave Bennett

2. APPROVAL OF AGENDA

Chair Melander asked if there were any changes to the Agenda. Acting Community Development Director Tom Lovelace stated that he would like to add Agenda Item 7B, Set Public Hearing for the Water Management Plan. Chair Melander called for approval of the amended Agenda.

MOTION: Commissioner Burke moved, seconded by Schindler, to approve the Agenda. The motion carried 6-0.

3. APPROVAL OF MINUTES OF NOVEMBER 1, 2006

Chair Melander asked if there were any changes to the minutes. There being none, he called for approval of the minutes.

MOTION: Commissioner Churchill moved, seconded by Helgeson, to recommend approval of the minutes of the November 1, 2006, meeting. The motion carried 6-0.

4. CONSENT ITEMS

None.

5. PUBLIC HEARINGS

None.

6. LAND USE/ACTION ITEMS

A. BGH Estates - Consider Comprehensive Plan Amendment from "C" (Commercial) to "MD" (Medium Density Residential/6-12 units per acre), Rezoning from "RB" (Retail Business) to "M-4C" (Multiple Family Residential 6-8 units per acre), Subdivision, Site Plan/Building Permit Authorization, and 2 Variances to Allow for Construction of a 2-unit Townhome on a Portion of a .71 Acre Parcel

Associate City Planner Kathy Bodmer presented the request from BGH Properties, LLC, for subdivision of the Cedar Brook Market property, located at 12503 Germane Avenue, to allow the construction of a 2-unit townhome. In order to do that, the applicant is requesting the following land use actions:

" Comprehensive Plan Amendment from "C" (Commercial) to "MD" (Medium Density Residential at 6-12 units/acre) on the southern portion of the property.
" Rezoning from "RB" (Retail Business) to "M-4C" (Multiple Family, 6-8 units/acre) on the southern portion of the property.
" Preliminary plat subdividing the existing parcel to create three new lots, one for the existing convenience store and two lots for a two-unit townhome.
" Site Plan review/building permit authorization for construction of a 2-unit townhome.
" 15' setback variance from the convenience store parking lot to the new property line.
" 5' variance from the townhouse building to the north property line.

Bodmer reported the applicants are requesting a comp plan amendment of the southern parcels to "MD" (Medium density residential, 6-12 units/acre) and a rezoning to "M-4C" (Multiple family residential, 6-8 units/acre). A two-unit townhome on 11,657 sq. ft. lot results in a density of 7.4 units/acre. The applicants will add two density bonus items - upgraded sound proofing and outdoor private space - in order to construct the townhome on the 11,657 sq. ft. lot.

Bodmer reported that the applicants are requesting two setback variances. The first is a 15' variance from the 20' setback for a commercial parking lot from a property line adjacent to a residential property. The variance would allow the parking lot to be located 5' from the newly created property line. The second variance is a 5' variance from the 25' setback for the townhouse building from the north property line. The variance would allow the home to be constructed 20' for the northern property line.

The applicant has modified the design of the driveway to better direct traffic and provide one additional parking stall. The building has shifted slightly to the west, making it necessary for the applicant to slightly reconfigure the lots in order to meet the lot area requirements.

A public hearing was held on this item at the November 1, 2006, Planning Commission meeting during which time a neighbor asked what will happen to the existing convenience store. Bodmer responded that no change to the existing store is planned. The townhome will be constructed in addition to the existing store. The resident seemed to be of the understanding that the Cedar Brook Market was going to be removed.

The Commission discussed alternate designs for the parking lot. The consensus was to have staff work out with the applicant to get the best layout for the parking lot.

MOTION: Commissioner Helgeson moved, seconded by Churchill, to recommend approval of a Comprehensive Plan Amendment from "C" (Commercial) to "MD" (Medium Density Residential with 6-12 units/acre) on the southern portion of the property. The motion carried 7-0.

MOTION: Commissioner Helgeson moved, seconded by Churchill, to recommend approval of a rezoning of the southern portion of the property from "RB" (Retail Business) to "M-4C" (Multiple family residential with 6-8 units/acre). The motion carried 7-0.

MOTION: Commissioner Helgeson moved, seconded by Churchill, to recommend approval of the Preliminary plat of BGH Estates subdividing one parcel into three parcels, with the following conditions:

" Approval of the preliminary plat is conditioned upon the approval of the Comprehensive Plan Amendment and the Rezoning.
" Drainage and utility easements shall be dedicated adjacent to all property lines and over the infiltration area.
" Cross-access easements shall be executed between the three lots to allow for utility line connections, shared parking/access and a shared drainage area.
" A conservation easement shall be dedicated over the infiltration area.

The motion carried 7-0.

MOTION: Commissioner Helgeson moved, seconded by Churchill, to recommend approval of the Site Plan and giving Building Permit Authorization for construction of a 2-unit townhome, subject to the following conditions:

" Approval of the site plan/building permit is conditioned upon the Comprehensive Plan Amendment, Rezoning, and Preliminary Plat.
" Enhanced sound proofing and a privacy wall shall be installed to allow for the increased density on the site.
" The landscape materials shall meet or exceed 2.5% of the value of the construction of the townhome based on Means Construction Data.
" A minimum of a knee wall shall be installed on the rear elevation of the building.

The motion carried 7-0.

MOTION: Commissioner Helgeson moved, seconded by Churchill, to recommend approval of the following two setback variances:

" A 15' setback variance for the convenience store parking lot to the new property line.
" A 5' variance from the townhouse building to the north property line.

The motion carried 7-0.

B. "PD-341" Amendment - Consider an Amendment to the Maximum Building Height in Zone 4A of the Planned Development 341

Acting Community Development Director Tom Lovelace presented the request from HTPO and Wal-Mart Stores, Inc., for an amendment to the current maximum building height requirement of 20 feet in Planned Development No. 341/Zone 4A, to 35 feet. The request is being made as part of site plan/building permit request by Wal-Mart for a 69,176 sq. ft. addition with walls that would be 35 feet high. This request will also impact Bachman's, the Apple Valley Retail Building, and Denny's restaurant property.

Lovelace reported that Wal-Mart and Bachman's two existing buildings located in Zone 4A currently exceed the maximum building height of 20 feet. The height of the Wal-Mart building is 26 feet and Bachman's has a typical wall height of 20 feet, however, its slope atrium roof is approximately 8-10 feet higher. Staff believes that at a minimum, the maximum building height in zone 4A could be increased to 30, which would bring the two existing non-compliant buildings into compliance.

Lovelace stated that staff was unable to find any historical documentation on why the maximum height of 20 feet was established for this commercial area. Surrounding zoning districts have maximum heights from 35-45 feet. In addition, residential areas in "PD-341" allow buildings to have a maximum height of 45 feet in single family areas and 30 feet in townhome areas. It is staff's opinion that an increase in building height would not be out of character with surrounding properties.

As proposed, the Wal-Mart building addition would have exterior walls that would be 23 feet to 30 feet in height except at the three main entrances which are proposed to be 33 feet to 35 feet tall. An option to amend the code would be to increase the maximum height to 26 feet which would require the removal of the proposed entry features or to increase the maximum height to 30 feet but allow for unoccupied architectural details such as parapets or entry features to exceed the maximum building height as long as they don't comprise a certain percentage of any elevation.

Chair Melander stated that considering the mass of the building, he would be in favor of a maximum building height of 35 feet with an additional 5 feet allowed for architectural features. Commissioner Helgeson stated that he would be prefer a 35 feet maximum building height but could go either way. Commissioner Churchill stated that she would like to see a building height maximum of 30 feet with an additional 5 feet allowed for architectural detail. Commissioner Diekmann commented that since the lots to the west and east both having building heights greater than the proposed request, he would like to see a maximum building height of 35 feet across the board. Commissioners Burke and Schindler prefer 30 feet building height maximum with an additional 5 feet allowed for architectural detail.

MOTION: Commissioner Churchill moved, seconded by Burke to recommend approval of an amendment to increase the maximum building height in Zone 4A of Planned Development No. 341 from 20 feet to 30 feet. The motion carried 6-1, with Commissioner Diekmann opposed.

MOTION: Commissioner Churchill moved, seconded by Burke, to recommend approval of an amendment that would allow an increase in building height of an additional 5 feet for unoccupied architectural details such as parapets or entry features comprising less than 40% of the lineal elevation of a front elevation. The motion carried 6-1, with Commissioner Diekmann opposed.

C. Wal-Mart CUP Amendments - Consider Amendments to the Existing Temporary Trailer Storage, Outdoor Garden Display and Sales, and Propane Tank Display and Sales Area Conditional Use Permits

D. Wal-Mart - Consider Amendment to an Existing Conditional Use Permit to Allow for the Relocation of the Cardboard Bale and Pallet Storage Area, and Site Plan/Building Permit Authorization to Allow for the Construction of 72,786 sq. ft. Addition to an Existing 129, 958 sq. ft. Retail Store

NOTE: Item 6C and 6D were discussed together as one Agenda item.

Acting Community Development Director Tom Lovelace presented the request from Wal-Mart Stores, Inc. and HTPO. They are requesting the following:

" Conditional Use Permit to allow for the expansion and modification of the outdoor garden enter display and sales area.
" Amend propane tank display and sales area site plan.
" Conditional Use Permit Amendment (CUP) to allow for the relocation of the existing outdoor cardboard bale and shipping pallet storage area.
" Site Plan/building permit authorization to allow for the construction of a 69,176 sq. ft. building addition.

Lovelace reported that a previous request to allow for the relocation for the temporary trailer storage area from the northwest corner to the northeast corner of the property was withdrawn by the applicant.
The first request for an amendment to the existing outdoor garden center display and sales area CUP to allow for a slight modification to the area on the east side of the garden center and changes to the walls of the outdoor garden center. The revised plans indicate the removal of approximately 120 sq. ft. of area in the southeast corner of the garden area and removal of the north 120 feet of the east wall, which is currently 10 feet high and constructed of a combination of materials consisting of rock face masonry block with black ornamental picket fencing atop the masonry wall. The applicant had proposed to replace the east wall with a 16-17 ft. high wall that will be constructed of 100% picket fencing.

The second request is for a conditional use permit amendment to the site plan for the propane tank display and sales area to reflect the proposed revisions to the garden center. These two conditional use permits are part of Wal-Mart's building request currently under review by the City.

The site plan indicates a 69,176 sq. ft. addition to an existing 128,958 sq. ft. retail building and an addition of 280 surface parking spaces. The proposed addition will include the following:

" A new 5-bay receiving dock in the northwest corner of the building.
" Approximately 60,000 sq. ft. of space added along the west side of the existing building that will be dedicated for grocery sales.
" Modifications and relocation of the existing front entrances and the addition of a third entrance to the grocery sales area.
" Relocation of the north service driveway 65 feet to the east.
" Placement of a trash compactor and compressor units along the west side of the building.

Lovelace reported the applicant is also proposing to relocate the existing outdoor cardboard bale and shipping pallet storage area from its current northwest corner location to the northeast corner, which is the current location of the building's receiving dock.

Chair Melander asked about the cart corrals. Lovelace stated they will be reconstructed and the design will be more like the corrals located at Cub Foods in Apple Valley.

Commissioner Churchill asked about the parking calculation. Lovelace stated that he believes the project meets the parking requirements.

Commissioner Churchill pointed out that it appears that the cart storage seems to be located in one central area. She drove by the store tonight before coming to the meeting and noticed at least 30 carts loose in one location. She also said that the store has a problem with adequate storage. She stated that the outdoor garden center is supposed to be for materials garden materials or items associated with gardens. Throughout the summer, she noticed that bicycles were stored in the area.

Brian McCool, Land Use Counsel for the applicant, stated that there will be a cart coral located by the outdoor garden center. He added that in addition, Wal-Mart will study the plans and do what it can to install additional cart corrals. Debra McNulty, the manager of the store, stated that she understood that once the garden center closed down during the off-season, they could utilize the area for storage.

Commissioner Churchill stated that she is disappointed that Wal-Mart is asking the City to do more for them when they are not complying with the current conditions of their CUP. McNulty stated that they will comply. Churchill added that it is not in the best interest of the City to allow Wal-Mart to bring in more products when they are not maintaining their current level of product to the satisfaction of the City. Commissioner Blundetto told McNulty that he believes that she is a good person but he does not believe her when she says that she will comply with the conditions of the existing CUP. Blundetto added that the comment earlier made by their Land Use Counsel (McCool) that they will study the plans to see if more cart corrals are needed was very disappointing to him. Blundetto added that there are 2 major issues on the table tonight - reconstruction and remodeling. Blundetto was hoping that the store was bringing everything into compliance during the past couple of months while the requests were tabled. McNulty stated that they have hired more cart pushers in an effort to clean up the problem and that store managers have also been doing more policing of the carts.

Commissioner Helgeson asked McNulty if she would acknowledge that there is a problem with the carts being scattered loosely throughout the site. He stated that he visited the store just prior to tonight's meeting and counted at least 150-200 carts scattered throughout the site. McNulty acknowledged that the carts are a problem.

Commissioner Helgeson asked McNulty if she was aware of how many storage containers can be located in the back of the store. McNulty replied that she thinks it is around 14. Commissioner Churchill stated that 6 storage containers can be located in the back of the store. Helgeson asked why should the City grant more when the store is not complying with what has already been granted. Helgeson stated that he was hoping to see an improvement in the store's operations since the application process was started.

Commissioner Diekmann asked McNulty how long she has been managing the store. McNulty stated that she has been the manager for over 2 years. Diekmann stated that she should be aware of the conditions of the CUP. Diekmann commented that when Wal-Mart was granted a CUP to sell propane tanks, one of the conditions was that signage be installed in all entrance locations and in the propane tank sale area. Diekmann stated that the signage is not presently up. McNulty stated that she will get the signage up immediately. Diekmann added that Home Depot also does not have the signage posted regarding the propane tank sales. Lovelace stated that he would check into that.

Blundetto asked McNulty if she has read the current CUP. McNulty stated that she has never seen a town that is as regulated as Apple Valley. McNulty added that she has not read the CUP but will read it tonight.

Chair Melander commented that it is no fun to deal with businesses that are always pushing the envelope.

Commissioner Helgeson stated that he feels that Wal-Mart is good for the community and he is not trying to stop the project but the bottom line is that the issues brought forth from the Commission have not been addressed.

Osunobun Osage, representing the applicant, addressed the Commission and stated that the plan did take into consideration additional storage area. Blundetto added that the design of the store is not in question; it is the store's compliance that is in question.

Lovelace proceeded to show elevations of the current sight lines and the proposed sight lines associated with the request.

Chair Melander asked if staff have considered any restriction on hours of operation for the compressor/compactor.

Commissioner Churchill added that the store has also had issues with semis parking in the lot overnight and for days at a time. McNulty stated that this has been an issue and that she is in regular contact with the City's Police Chief to resolve the issue. The police are called to have the owner remove the semi or the semi is towed. Churchill added that by eliminating the container storage area, we are increasing the trailer problem. Churchill stated that she noticed there is a trailer parked along 147th and Pennock tonight. Chair Melander added that it seems as if the store is using more storage than is needed.

Commissioner Churchill asked if the policy that states that the store manager visit with staff to review the CUP is working. Lovelace replied that it has somewhat worked.

Commissioner Schindler asked what is done on the City's part to ensure compliance. Lovelace stated that staff tries to work with businesses rather than take them to court or revoke the CUP. Schindler questioned if staff has failed to enforce compliance.

Blundetto stated that he is having a hard time supporting the requests before the Commission. In response to Schindler's comments, he stated that it is the City's expectation that business will comply with the ordinance.

Churchill stated that she too is struggling and would have a difficult time supporting the store's expansion. She added that Wal-Mart does not take the City seriously.

Helgeson asked if there were any other options for the applicant. For example, could the requests be withdrawn in order to give Wal-Mart time and proof of compliance? Lovelace stated that it is up to the applicant as to which direction they want to take. Lovelace added that however, there are deadlines that apply with the application.

McCool stated that he thought that while the items were tabled, the application expiration dates did not apply. Sharon Hills, City Attorney, responded that she thought the items were withdrawn previously and not tabled. The Agenda indicates that the items were tabled and not withdrawn. Hills stated that action will have to be taken tonight or the applicant will need to withdraw their petition. Helgeson asked if the applicant is able to withdraw and resubmit at a later date. Lovelace replied yes. The applicant did not withdraw.

MOTION: Commissioner Churchill moved, seconded by Schindler, to recommend approval of the existing conditional use permit No. 1999-107 to allow for the relocation of the existing outdoor cardboard bale and shipping pallet storage area as indicated on the site plan dated August 9, 2006, subject to conditions 1, 3, and 4 of the Apple Valley Resolution No. 1999-107. The motion failed 0-7.

MOTION: Commissioner Churchill moved, seconded by Schindler, to recommend approval of the site plan/building permit authorization request to allow for the construction of a 69,176 sq. ft. building addition and 263 additional surface parking spaces on property described as Lot 1, Block 1, WALMARTS FIRST ADDITION, in accordance with the preliminary site, grading and drainage, and landscape plans dated August 8, 2006, and building elevation plans dated June 21, 2006, and October 27, 2006, subject to applicable City ordinances. The motion failed 0-7.

MOTION: Commissioner Churchill moved, seconded by Schindler, to recommend approval of the amendment to Conditional Use Permit No. 2003-152 to allow for the reconfiguration of the permanent outdoor garden center along the east and south side of the existing Wal-Mart store located 7835 150th Street, subject to the following conditions:

" The decorative fencing around the existing and expanded permanent outdoor garden center area shall consist of combination masonry wall and ornamental picket fence.
" The maximum height of the fence around the east area shall be 20 feet.
" The masonry wall pilasters shall be increased to 20 feet.
" A sidewalk with a minimum depth of 10 feet shall be required in front of the south side of the garden center.
" Only lawn and garden supplies shall be displayed in the permanent outdoor garden center.

The motion failed 0-7.

MOTION: Commissioner Churchill moved, seconded by Schindler, to recommend approval of the amendment to Conditional Use Permit No. 2005-66, to allow for the relocation of the propane tank storage and display area at the existing Wal-Mart tore located at 7835 150th Street West, as indicated on the site plan dated August 9, 2006, subject to the following:

" Adhering to conditions 1, 3, and 4 through 10 of Apple Valley Resolution No. 2005-66.
" The propane storage area shall be located on the raised concrete island with non-surmountable curb and gutter and protective bollards shall be installed around the perimeter of the storage area to the satisfaction of the City's Fire Marshal.

The motion failed 0-7.

E. Mount Olivet Youth Center - Consideration of Site Plan/Building Permit
Authorization to Allow for Construction of a 16,000 sq. ft. Building

Associate City Planner Margaret Dykes presented the request from Mt. Olivet Assembly of God Church and Negen Architects for site plan/building permit authorization for an approximately 16,000 sq. ft. building.

Dykes reported the property is zoned "P" (Industrial), which allows as permitted accessory uses, ancillary uses such as convents, seminaries, parish houses, religious retreats, and the like when accessory to a church. The proposed multi-purpose building, which is to be used for a youth center, is similar to the permitted enumerated uses in the zoning code. Dyke stated that the Planning Commission and City Council will need to determine if the proposed building is similar to those listed in the zoning code.

Dykes reported that the site plan shows an approximately 16,000 sq. ft. multi-purpose building on the Mt. Olivet Church site. The building is to be constructed in the current location of a vacant single-family home. The house is to be demolished. A permit from the Building Inspection Department will be necessary for the demolition.

Dykes reported that the footprint of the Church is approximately 13,000 sq. ft. The entire finished area of the church totals 24,000 sq. ft. The proposed building is intended to be used for youth ministry and other church purposes. The site plan indicates that the parking lot will be expanded from 228 spaces to 256 parking spaces. There is sufficient parking for both uses on the site. The building and expanded parking lot meets all required setbacks. The total building coverage is approximately 9% of the 8.5 acre lot.

Dykes stated that a trash enclosure is to be located on the west side of the building and is to be constructed of the same masonry materials as the building. Sidewalks surround the new building and connect to the parking lot; however there is no connection to the bituminous path located on Cedar Avenue. Because of the steep grades, it would be somewhat difficult to make a connection from the bituminous path to the sidewalk.

The site plan does not indicate where the mechanicals will be placed. All mechanicals must be properly screened according to City Code.

The City Engineer has reviewed the grading plan and has several significant outstanding issues. The grading plan does not indicate how grades will tie in with the property to the south, nor does the plan show the grading limits or erosion control for the site. Retaining walls are shown on the plan, but it does not indicate the height of the walls. All walls over 4 feet must be designed by a registered civil engineer and plans provided to the City. A stormwater infiltration site is shown on the southwest side of the site; however, the applicant did not include a utility plan with the submitted plans. These plans are required and necessary to evaluate the proposed plans. Dykes stated that at this point, the City does not know how sanitary sewer and water services will be brought to the building. Additionally, the City must know the type, size, and grade of pipe used for the storm sewer. A Natural Resources Management Permit will be required prior to any grading activities.

Dykes reported that the City's Natural Resources Coordinator made some minor changes to the landscaping plan that can be easily corrected. However, the applicant did not provide a tree mitigation plan and the City cannot evaluate whether the tree replacement requirement has been met. In addition, the landscape plan shows a small rain garden on the plan which is not shown on the grading plan. The zoning code requires that the costs of live landscaping materials (excluding sod) equal to or exceed 2.5% the total cost of the building materials. The applicant will need to supply the building costs and landscaping costs as part of the building permit application.

Dykes stated that due to the number of outstanding issues, staff is not able to make a recommendation at this time. Staff is recommending that the Planning Commission table the item until its next meeting so that the applicant has time to submit all of the necessary items and staff has time to review the plans. The applicant is amenable to tabling the proposal.

MOTION: Commissioner Churchill moved, seconded by Helgeson, to table this Agenda item. The motion carried 7-0.

F. Apple Valley Surface Water Management Plan - Set Public Hearing

Acting Community Development Tom Lovelace reported that Surface Water Management Plan is in the process of being updated. The purpose of the update is to provide the City with a framework for sustaining the long-term integrity of the City's surface waters and maintain on-going compliance with surface water regulations. The Plan also addresses changes to land uses that have occurred in the City and the concurrent changes to runoff characteristics, drainage patterns, and flood storage in the City. Because the Plan is part of the Utilities Chapter of the 2020 Comprehensive Plan, any update requires a public hearing before the Planning Commission.

MOTION: Commissioner Burke moved, seconded by Churchill, to set a public hearing on December 6, 2006, to consider the draft Surface Water Management Plan. The motion carried 7-0.

7. OTHER BUSINESS

A. Cobblestone Lake Commercial Sketch Plan of a Proposed Commercial Development Project That Would Include a 175,000 sq. ft. General Merchandise Retail Building, 5 Additional Retail Buildings Totaling 379,600 sq. ft., 2 Restaurants Having a Total of 10,155 sq. ft., a 4,300 sq. ft. Bank with Drive-thru Lanes, and 1,100 Surface Parking Spaces on 23 Acres

Acting Community Development Director Tom Lovelace presented sketch plan from Tradition Development for the Cobblestone Lake Commercial Development, a 26-30 acre retail site that would include approximately 215,000 sq. ft. of retail, an 180,000 sq. ft. major tenant anchor, 10,000 sq. ft. of restaurant uses, a 5,000 sq. ft. bank, and 1,100 surface parking spaces. Ryan Companies, the developer of this project, proposed two possible sites within the Cobblestone Lake Development. Since the submission of this request to the Planning Commission, the applicant has narrowed its focus to Site 1 indicated on the plan, on the southeast corner of Pilot Knob Road and 153rd Street West.

The site is current Comp Plan guided for a combination of commercial and medium density residential uses and is zoned "PD-708/zone 8" which allows for sand and gravel mining operations as a interim use. Any formal application will require a request for a Comprehensive Plan amendment, rezoning, planned development ordinance amendment, subdivision, and site plan/building permit authorization.

Representatives from Tradition Development and Ryan Companies presented an overview of the proposed plan.

8. ADJOURNMENT

MOTION: Commissioner Schindler moved, seconded by Blundetto, to adjourn the meeting at 9:54 p.m.