Department of Planning & Community Development

Staff Contact: Timothy R. Schmitt Phone No.: 517-319-6828 PC Agenda: May 23, 2012

STAFF REPORT May 17, 2012 Modified Site Plan and Special Use Permit Application 213-217 Ann Street (Infinity Companies, LLC) SUBJECT An application from Infinity Companies, LLC to modify the approved Site Plan and Special Use Permit to construct a five story mixed-use building at 213-217 Ann Street. The property is zoned in the B-3, City Center Commercial District. FORMER CONDITIONS The site consists of two properties, side by side along Ann Street. Both have commercial structures on them, both of which were built in the late 50s/early 60s. The buildings are currently home to The Post, Kirabo, and one vacant space; formerly Mackerel Sky. There are currently no residential units on the property. There is a very limited amount of parking and loading area to the north of the buildings, accessible from the alley adjacent to the site in the east. There is an existing Special Use Permit approval on the site for the The Post, but no active approvals for the remaining spaces. The property has frontage on Albert Avenue, although the former Ann Street is the actual frontage for the site and is the street which provides an address to the subject properties. The parcels are located just off Ann Street Plaza, just to the north of the 100/200 block of Grand River Avenue, in the core of the downtown. The surrounding area is a mix of residential and non-residential uses. The subject properties along with properties immediately adjacent in all directions are zoned B-3, City Center Commercial. To the north is the Grove Street Parking Ramp and to the south is the edge of Ann Street Plaza and across Albert Avenue, Parking Lot 1. To the east are several two-story commercial buildings, including El Azteco and the building at 301 M.A.C. with commercial on the first floor and office above. Further to the east is the University Place development, including the Marriott hotel. To the west is a small twostory mixed-use building, which is proposed for redevelopment (see 200 Albert application). Further west is the one-story 7-11 building, at the northwest corner of Grove and Albert. Also of note in the area, St. Johns Student Parish is located to the northeast of the subject property. Traveling further to the north and east, residential properties dominate. Further to the northeast, the commercial spaces transition into a more residential neighborhood, zoned RM-32, City Center Multiple-Family Residential.

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PROPOSED DEVELOPMENT The applicant is currently constructing the previously approved building. The first approval for the .224 acre site includes a three story restaurant space, a two story retail/restaurant space, and eighteen loft-style apartment units. There would be on-site loading space provided to the north of the buildings, where existing loading/unloading occurs. No on-site parking would be provided, as the proposed building would be located adjacent to the Grove Street Parking Ramp, which would, along with the remainder of the parking system, provide parking spaces for the site. The applicant proposed a series of changes in late 2010 that modified the uses in the building. Previously, the plans had indicated two areas of potential retail/restaurant space on the second floor. The applicant received approval to modify one of these areas into apartments, bringing the total number of apartment units in the building to thirty-one. The applicant is proposing to add a penthouse (fifth) story to the project, which will include a single apartment unit. The project overall would have a total of thirty-two apartment units, with a mix of studio, one-bedroom, and two-bedroom units. Under a Special Use Permit, Staff does not have the ability to administratively change any portion of the request, which is necessitating the review by the Planning Commission and City Council for the fifth floor. STAFF REVIEW Site Plan A site plan application must meet the specific use and dimensional standards of the zoning district in which it is to be located and a number of other required conditions for development as specified in the Zoning Code. A site plan application must substantially comply with the general standards of review specified in Sec. 50-38 of the Code. A site plan must also comply with other applicable local ordinances, and state and federal statutes, and be consistent with the objectives of the Citys Comprehensive Plan. A site plan may be approved subject to certain conditions or modifications necessary to bring the plan into conformance with these requirements, including the approval of any variance that may be granted by the Zoning Board of Appeals. For the Planning Commissions convenience, the original review standards follow. Additionally, the approval letter from the second request is attached for informational purposes. A. Zoning District Standards The B-3 District is to provide for a wide range of commercial and high density residential land uses designed to serve the residents and shoppers of the East Lansing City Center. Because of its proximity to the Michigan State University campus and nearby residential neighborhoods, a major characteristic of the City Center is its intense

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core of pedestrian activity. This activity helps to create a unique social environment where people can gather and enjoy the festive atmosphere of a university downtown, attractive landscaping and greenery, and the diversity of retail shops. The B-3 zoning is the downtown core zoning. It is highly mixed in terms of uses, with individual buildings being permitted to have multiple different uses. It covers the middle portion of Grand River Avenue in the City, along with the first blocks of the north/south roads coming from Grand River. Albert Avenue is the main east/west route through the downtown. The municipal parking system provides parking services to any property within the B-3 district. B. (1) General Standards of Review for Site Plan Approval General site conditions. The site shall be designed and developed to provide a logical relationship between functional elements, to effectively serve the purposes for which it is to be developed, and to be reasonably compatible with surrounding properties. The building is somewhat constrained in design, due to the potential of tall buildings being built on both sides of it and the need to construct firewalls on those facades. This eliminates the potential for most openings in those walls. The applicant has worked to be compatible with the surrounding properties and the predominantly brick architecture is consistent with a number of buildings throughout the Community. The building is well sited on the lot, utilizing the frontage effectively and maintaining a loading area to the north. (2) Natural features. The site shall be designed and developed to minimize the disruption or loss of its desirable natural qualities and to enhance its overall appearance. There shall be no net loss in either wetland area or wetland benefits due to development of the site. There are no natural features on the site. The applicant is utilizing an already disturbed site and will not be further impacting natural features in the community or on the site. (3) Traffic Access. The site shall be designed and developed to provide safe and efficient access for all forms of travel and to minimize impacts on adjacent public facilities. The Transportation Commission previously reviewed the request and indicated no major concerns. At this time, no improvements to the adjacent public facilities are proposed. (4) Utilities and public services. The site shall be designed and developed to facilitate the efficient provision and maintenance of adequate public services.

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Public storm sewer, sanitary sewer, and water are available for the site, although the system will need substantial modifications to support increased density in this area of the Community. The construction of these improvements is currently underway. (5) Environmental protection. The site shall be designed and developed to minimize any risk of pollution of natural resources and to protect the public health, safety and welfare. No pollution is expected as a result of this proposal and the public health, safety, and welfare will be protected. C. Other Applicable Local Ordinances and State and Federal Regulations Prior to the approval of final plans and the issuance of any construction permits, the final plans will have to comply with all applicable local construction standards and specifications. D. Objectives of the Comprehensive Plan The Comprehensive Plan calls for mixed, urban uses on the site, up to 10 stories in height. Specifically, the project supports the following goals of the Comprehensive Plan. Objective 2-3: Promote diversity in Downtown housing. Objective 3-1: Support both commercial and residential development opportunities downtown. o Action 3-1.8: Require any redevelopment of existing commercial areas to include mixed-use, multiple-story buildings rather than strip development. Objective 5-2: Allow for and encourage land development patterns which can reduce the necessity for the use of automobiles. o Action 5-2.1: Provide opportunities for concentrated residential development within and adjacent to commercial and employment centers. E. Other Department Review The Planning and Community Development Department routed a copy of the proposal to the Assessing, Fire, Building, Police, and Engineering Departments. No additional comments were received, as the plans have been thoroughly reviewed through the construction documents that have been submitted for building permit review. STAFF REVIEW Special Use Permit A Special Use Permit application may be approved if it meets the requirements for Site Plan approval reviewed above and if the applicant makes an affirmative showing and

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the City finds that the application meets the following additional standards of review specified in Sec. 50-94 of the Code. A Special Use Permit may also be approved subject to reasonable conditions or certain modifications necessary to ensure that the use conforms to all applicable requirements. A. All uses. Except as may be provided elsewhere in the Zoning Code, each Special Use Permit application shall meet each of the following standards: The proposed use shall be consistent with the purpose of the use district in which it is located and the purpose and provisions of this division. From the Zoning Ordinance, the purpose of the B-3 Zoning District is: (a) The purpose of this district is to provide for a wide range of commercial and high density residential land uses designed to serve the residents and shoppers of the East Lansing City Center. Because of its proximity to the Michigan State University campus and nearby residential neighborhoods, a major characteristic of the City Center is its intense core of pedestrian activity. This activity helps to create a unique social environment where people can gather and enjoy the festive atmosphere of a university downtown, attractive landscaping and greenery, and the diversity of retail shops. (b) The provisions of this district are intended to encourage the planned development of pedestrian amenities and public and private open space, and closely regulate the need for direct automobile access to each establishment. Also important in the future development of the City Center is the concept of mixeduse development promoted by this district and the East Lansing Comprehensive Plan. Mixed-use development for purposes of this district is defined as the combination of commercial and residential land uses within the same building. Since the City Center contains only limited geographic area for expansion, intensifying development through a mixture of uses within the same building is of major importance to the city's efforts to expand the tax base and broaden the housing and shopping opportunities available in the City Center. The project meets with the intent of the district by promoting additional restaurant and retail opportunities in the downtown and providing unique housing opportunities. The semi-public space being created for outdoor seating would be similar to the rooftop seating at El Azteco, which is a major downtown attraction. (2) The site plan for the property shall be approved in accordance with the provisions of section 50-36 of this chapter.

(1)

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The site plan application was submitted correctly, with the proper information, as required in Section 50-36. (3) The proposed size, height, architectural character and placement of new or expanded structures on the site shall be reasonably compatible with the existing or anticipated buildings on adjacent properties. The building, even with the addition of the fifth floor, is proposed to be substantially smaller than its neighbor that is proposed directly to the west and the Marriott building to the east. It will be similar in height to the City Center I building, to the southeast. The Comprehensive Plan calls for up to 10 stories in the downtown, making the site much shorter than potentially anticipated. The height and architecture being proposed is reasonably compatible with the downtown area. (4) Streets and access facilities serving the site shall be able to safely accommodate the expected traffic generated by the proposed use; the use shall not cause excessive traffic congestion or delays, obstruct access to adjacent properties, or imperil the safety of motorists, pedestrians or bicyclists. The Transportation Commission previously reviewed the traffic study for the site and found no major concerns. (5) The proposed use shall not adversely affect the use and enjoyment of adjacent properties by generating excessive noise, vibration, light, glare, odors or any other form of pollution or nuisances. Excessive noise, vibration, light, glare, odor, or any other nuisance or pollution are not expected from this proposal. All applicable City ordinances related to soil erosion, noise, lighting, etc. are being enforced through construction and operation of the project. (6) The proposed use shall not materially diminish the economic value of adjacent properties or the city as a whole. The proposed use is not expected to diminish the economic value of adjacent properties or the City as a whole. The project will have a net positive impact on the City by bringing more persons downtown (potential shoppers and patrons) and by making a substantial investment in the community, contributing to the long-term viability of the Citys tax base. The addition of the penthouse unit adds a very unique housing accommodation to the City that the applicant intends on utilizing for special visitors to East Lansing.

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(7)

The proposed use shall not materially diminish the privacy, safety, security or enjoyment of any residential dwelling or residential neighborhood within the vicinity of the site. There is no direct evidence that this proposal would diminish the privacy, safety, security, or enjoyment of any nearby residential dwelling unit or neighborhood.

(8)

The proposed use shall be located with direct access to and frontage on a major street as designated in the major street plan, or within an area designated for adaptive reuse in the city center element of the comprehensive plan. The site is in an area designated for adaptive reuse in the downtown.

B.

Specific uses. In addition to the standards above, to address their unique characteristics, certain uses shall also meet the applicable standards below. Additional building height. a. Where a special use permit is required to permit building height above the base level permitted in any use district, the compatibility of the building shall be determined in part by the extent to which the use of the building and the building design, its setbacks and its orientation on the site successfully mitigate negative impacts upon neighboring uses, the natural features of the site and public facilities and services. Such buildings may be approved only if they comply with subsection (a) of this section and all of the following additional standards: 1. The building shall not be located in such proximity to a single-family or two-family neighborhood so as to cause excessive noise or shadowing impacts, or substantial reductions in personal privacy or property values. The planning and zoning administrator may require the applicant to submit a solar angle diagram and shadow analysis prepared by a registered architect or engineer showing the extent of shadowing caused by the proposed building on adjacent properties and structures. 2. The portion of the building extending above the base level permitted in each use district shall be located no closer to the property line of a residentially zoned property than a distance equal to the amount of the height in excess of the base level. 3. The building shall not result in traffic generation which exceeds the carrying capacity of adjacent streets, exceeds the parking capacity of on-site spaces or nearby municipal parking facilities, causes excessive congestion or risks to public safety, or causes or substantially contributes to excessive volumes of traffic through residential neighborhoods. 4. The building shall not generate demands which exceed the capacity of public utilities and services necessary to serve the site.

(5)

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The applicant is proposing a building that, for the most part, meets the Citys height requirements for an approval by right. The discreet height of the building in feet meets the ordinance requirements, but the fifth story is one story higher than is permitted by right. The building is no closer to the residentially zoned properties in the north than the additional height (which is nine feet for the fifth floor), meeting the intent of the Special Use Permit standards for additional building height. And given the orientation of the building and the residential properties, shadowing should not be an issue. The traffic and public utility impacts have been previously reviewed and no major issues raised. STAFF RECOMMENDATION The change being proposed is a relatively minor one. The change will not substantively impact the review that was previously done on the property, only adding one apartment unit and one story to the building. Staff has no major concerns with the proposed additional story on the building, as it is still below the height in feet that is permitted in the district. Given that the proposal generally meets ordinance requirements, Staff can recommend approval of the site plan and special use permit. Given the nature of the request, the Planning Commission may wish to suspend their rules and act on the application after the public hearing. Should they choose to do so, Staff has provided a sample motion for review. It includes all of the previous conditions of approval. In the matter of the request from Infinity Companies, LLC for a modified Site Plan and Special Use Permit approval to construct a five-story mixed-use building, including a restaurant serving alcohol, at 213-217 Ann Street, motion to recommend approval to the City Council for the Site Plan and Special Use Permit for the following reasons (Insert specific Planning Commission reasons here) The proposed change would not substantially alter the previous approval or any of the conditions of approval that were imposed.

Subject to the following conditions (Insert specific Planning Commission reasons here) 1. Water and sanitary sewer extensions and connections shall be approved by the City Engineer in accordance with all applicable State and local regulations. All storm water detention facilities shall be designed to connect to and be consistent with the Citys storm water system and shall be approved by the City Engineer. Final grading, soil erosion control, paving and utility plans for the site shall be approved by the City Engineer in accordance with all applicable local requirements.

2.

3.

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4.

The applicant shall construct a minimum of an 8 foot wide sidewalk along all major road R.O.W. and 5 foot wide sidewalk shall extend from the public sidewalk to the entrance of the building. Final landscaping and screening details shall be approved by the Planning and Zoning Administrator. Bike racks shall be installed sufficient to accommodate at least 42 bicycles. The trash containers shall be constructed and screened in accordance with local specifications. The required permit(s) shall be obtained from the Department of Code Enforcement and Neighborhood Conservation for all exterior signs, in accordance with the City Sign Ordinance. The project shall be designed and developed in accordance with all applicable State and local statutes, codes and regulations. A plan shall be developed for loading and unloading at the building, with a focus on the fall/spring move-in and move-out times at the University, and approved by the City Council prior to construction beginning. A final agreement shall be developed and approved by the City Council for the proposed encroachment into the Ann Street right-of-way. A final agreement shall be developed and approved by the City Council for the proposed encroachment into the alley right-of-way to the east of the proposed building. The aerial encroachment into the alley shall provide a minimum of 28 feet of clearance for vehicles traversing the alley. The capacity of the restaurant shall not exceed 330 persons. The capacity and seating plan shall be reviewed and approved by the Director of Code Enforcement and the Fire Marshall in accordance with Building and Fire Code requirements. Persons under 21 years of age shall not be permitted to enter the premises after 11:00 p.m. unless accompanied by a parent or legal guardian. The proprietor shall maintain the required State Liquor License. The proprietor shall work with the Police Department to develop and implement an effective security plan and provide for appropriate staff training.

5.

6. 7.

8.

9.

10.

11.

12.

13.

14.

15.

16. 17.

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18.

The restaurant shall be designed, operated and maintained at all times consistent with responsible business practices and so that no excessive demands shall be placed upon public safety services, nor any excessive risk of harm to the public health, safety or sanitation, interference with vehicular or pedestrian traffic or parking, or the continuance or maintenance of any unlawful conduct, public nuisance or disorderly conduct either within the establishment or on or about the adjacent businesses and public streets, alleys, parks, parking facilities or other areas open to the public. The proprietor shall make reasonable effort to report to authorities any unlawful conduct that is observed from the premises. The restaurant shall comply with the requirements and performance standards of Section 50-8 of Chapter 50 of the City Code and Chapter 18 of the City Charter. The proprietor shall provide to the City Manager reports and business records, in the form and manner required, by an administrative order to be published by the City Manager and approved by the City Council as required by section 50-94(b) (2) d of the City Code, to permit the City to review and determine continued compliance with the requirements and performance standards of Section 50-8 Definitions - Restaurant of Chapter 50 of the City Code and Chapter 18 of the City Charter. Seasonal seating may be provided, but such seating shall not increase the overall capacity of the facility as stated in condition 14 above. The outdoor service area shall be vacated by 12:00 midnight daily. The outdoor service area shall be effectively delineated and contained with fencing, shrubbery or similar means to control access to the area. Furniture and equipment used in conjunction with the outdoor service area shall be stored in an inconspicuous space seasonally when the area is not in use. No live or recorded music or telecommunication device shall be provided in the outdoor service area which is audible from any adjacent residential property. Lighting provided for the outdoor service area shall be designed to direct light downward and not onto any adjacent property. The applicant shall be permitted to utilize the second floor of the second building in the project for either residential or non-residential uses.

19.

20.

21. 22. 23. 24. 25. 26.

27.

PRELIMINARY ZONING ANALYSIS

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213-217 Ann Street Development: Multi-Story mixed-use building Zone: B-3 Min. Site Area: Min. Floor Area Ratio: Max. Building Height: Max. Building Cover: Max. Ground Cover: Min. Bldg. Setbacks: Front Yard (South) Side Yard (East) Side Yard (West) Rear Yard (North) Parking Spaces: Min. Required Max. Small Spaces Min. Barrier Free Spcs. Min. Bike Spaces Loading Area Requirement: Min. Required Standard N/A 1.25 10 stories/140 feet1 Proposed 9,757 sq. ft. ~3.5 : 1 5 stories/64 feet 100% 100% Conformity Yes Yes Yes Yes2 Yes2

80%+ bonuses, up to 100% 85%+ bonuses, up to 100%

0 feet 0 feet 0 feet 0 feet

Encroachment into ROW Encroachment into ROW 0 feet 0 feet

No No Yes Yes

None permitted3 None permitted None needed 14

0 0 0 04

N/A N/A N/A Yes?

10 feet wide Adequate area shown Adjacent to building north of building

Yes

Notes: 1 Height above 4 stories or 64 feet requires a Special Use Permit 2 Applicant has provided approximately 1,378 square feet of qualifying features (private outdoor seating) that allows a 5:1 ratio of additional lot coverage. This allows up to 100% lot coverage. 3 Within the B-3 District, 191 parking spaces required. 4 Bicycle parking is provided in adjacent parking structure.