PLANNING AND ZONING COMMISSION Assembly Chambers Z.J. Loussac Library 3600 Denali Street Anchorage, Alaska. MINUTES OF April 9, :30 PM

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1 PLANNING AND ZONING COMMISSION Assembly Chambers Z.J. Loussac Library 3600 Denali Street Anchorage, Alaska MINUTES OF April 9, :30 PM A work session on the Public Review Draft MOA Historic Preservation Plan was conducted from 5:30 to 6:30 p.m. prior to the meeting and presented by Kristine Bunnell with the MOA Long-Range Planning Division along with the following members of the Historic Preservation Commission: Debbie Corbett (Chair), Monty Rogers and Bryce Klug. A. ROLL CALL Present Excused Staff Tyler Robinson Jon Spring Andre Spinelli Danielle Bailey Mitzi Barker Greg Strike Brian Looney Jared Gardner Seth Andersen Francis McLaughlin Shawn Odell Sonnet Calhoun Dave Whitfield Cleo Hill, MOA Fire Marshal Jodie Hettrick, MOA Deputy Fire Chief B. MINUTES 1. Monday, February 5, Monday, February 12, Friday, March 2, 2018 COMMISSIONER BAILEY moved to approve the minutes. COMMISSIONER SPRING seconded.

2 April 9, 2018 Page 2 of 14 Robinson, Spring, Spinelli, Bailey, Barker, Strike, Looney, Gardner, Andersen C. SPECIAL ORDER OF BUSINESS / EXECUTIVE SESSIONS 1. Disclosures COMMISSIONER BAILEY disclosed that she was not present when Case , Sears, Roebuck/Nordstrom, was initially heard and will recuse herself from participating. COMMISSIONER ANDERSEN disclosed in Case that he was not yet seated on the Commission and will be recused from participating. 2. Annual Election of Officers COMMISSIONER STRIKE moved to retain Commissioner Robinson as Chair. COMMISSIONER BAILEY seconded. ABSTAIN: Spring, Spinelli, Bailey, Barker, Strike, Looney, Gardner, Andersen Robinson COMMISSIONER STRIKE moved to nominate Commissioner Bailey as Vice Chair. COMMISSIONER BARKER seconded. ABSTAIN: Robinson, Spring, Spinelli, Barker, Strike, Looney, Gardner, Andersen Bailey Agenda Item E(2) 2. CASE: (SMO) PETITIONER: Municipality of Anchorage Public Works REQUEST: he Assembly of an Ordinance Amendment to: 1) repeal and reenact Anchorage Municipal Code (AMC) Subsection B. to update provisions regarding Stream, Water Body, and Wetland Protection, 2) amend AMC Chapters and to transfer variance authority for variances from stream, water body, and wetland protection regulations to the Zoning Board of Examiners and Appeals 3) add a new section to AMC Chapter regarding nonconformities with said protections and setbacks and 4) amend AMC Section , Definitions, accordingly.

3 April 9, 2018 Page 3 of 14 COMMISSIONER STRIKE moved to postpone Case to May 7, COMMISSIONER BARKER seconded. Robinson, Spring, Spinelli, Bailey, Barker, Strike, Looney, Gardner, Andersen Agenda Item G(2) 2. CASE: (SMO) PETITIONER: Dimond EAT, LLC REQUEST: Request to Rezone three parcels from B-1B SL to B-3 SL COMMISSIONER STRIKE moved to postpone Case to May 14, COMMISSIONER BARKER seconded. Robinson, Spring, Spinelli, Bailey, Barker, Strike, Looney, Gardner, Andersen D. CONSENT AGENDA - 1. Resolutions for Approval 2. Introduction for Public Hearings 3. Site / Landscape Plan Approval 4. Time Extensions; Expedited Hearing Requests; Minor Conditional Use Amendments 5. Other E. UNFINISHED BUSINESS AND ACTIONS OF PUBLIC HEARINGS Commissioners Bailey and Andersen recused themselves and left the room. 1. CASE: (SMO) PETITIONER: Sears, Roebuck and Co. REQUEST: Remand from Board of Adjustment Appeal from Planning & Zoning Commission Case , a public hearing site plan review per AMC and AMC for a large retail establishment (Sears Mall/Nordstrom Rack) in the B-3 (General Business) District.

4 April 9, 2018 Page 4 of 14 CHAIR ROBINSON noted that the public hearing is still open, but only to those that have not yet testified. He clarified with staff that the Commission can invite the petitioner and the petitioner s representative to respond to questions. SHAWN ODELL presented the staff report and recommendations on behalf of the Municipality's Planning Department. TIM POTTER with DOWL represented the petitioner and responded to questions. JOE REESE, Attorney for Seritage, assisted with responding to questions. The Commission discussed the cost for the construction of the canopy; the facade that was rebuilt above the front door; and direct access from the Mall through the east door. They also discussed meeting the standards and community spaces criteria; pedestrian access; a perimeter walkway; and meeting the ten percent of the project total cost. CHAIR ROBINSON opened the hearing to public testimony. There was no public testimony. There was no rebuttal testimony. CHAIR ROBINSON closed the public hearing. COMMISSIONER SPRING moved in Case to approve the site plan for the Nordstrom Rack with the Conditions of Approval listed on pages 13a and 14a of the staff packet. COMMISSIONER LOONEY seconded. COMMISSIONER SPRING expressed his appreciation to the petitioner for following the direction given at the last public hearing regarding the need to specify the exact amount of the improvements. That is something we need to do for all major retail site plan reviews. It is an improvement as far as access to the Nordstrom Rack from the main part of the Mall. COMMISSIONER SPRING moved to amend to require that any renovation and reconfiguration of the existing vacant Sears store include an aisleway connecting the main part of the Mall to the street frontage on the east. The aisleway will extend from the Mall to the door of the east facade. COMMISSIONER BARKER seconded. COMMISSIONER SPRING does not think it is that controversial. There is a firm commitment by the petitioner to do this and the application has been submitted. He also does not think it would be a hardship just to make sure it is established as part of this review. As he mentioned before, he always thought that this was a superior alternative to a route around the building. It will, hopefully, satisfy the needs of the rest of the Mall for traffic to be moved between all of the stores and will lead to a healthy mall for all of the tenants. It will also help to resolve this issue once and for all. COMMISSIONER LOONEY noted that we all need to understand that it is not going to diminish the need to strengthen the pedestrian access on the north of the building with the extension of the Mall to the east wall, which was part of the original motion. Aside from the amendment, our primary goal is to make sure that this is what we anticipated. Like the original motion stated, it looks as if it is conformance. In addition, we think that the value of having the extension through the Mall to the east has merit.

5 April 9, 2018 Page 5 of 14 COMMISSIONER GARDNER will support the amendment or something similar to it. He is aware of the concerns regarding pedestrian access. He is also conscious of the decision of the Board of Adjustment appeal that preceded this application, and this notion of no backsliding. From the testimony heard at the last hearing, it was apparent to him that there seemed to be a real regression in pedestrian access to and from the Mall and what is now Nordstrom Rack. He could support a motion that includes some sort of requirement for it to go clear through the Mall to the east side, but was wondering if some more specific language could be added, for example, how precise the aisleway is and if it could encompass something that we saw in the Sears Mall as it already existed, or if that would include the diagrams presented to us this evening. MR. POTTER replied that the aisleway language would cover it in the proposed amendment because whatever project comes forward, the Commission is going to be reviewing it in detail and can make it as wide as they believe would be appropriate. He asked Commissioner Spring to clarify that his amendment refers to the face of the building and the walkway along the east side of the structure, or does it refer to the new Seward Highway. COMMISSIONER SPRING clarified that the aisleway will extend from the Mall to the door of the east façade. AMENDMENT RECUSED: Robinson, Spring, Spinelli, Barker, Strike, Looney, Gardner Bailey, Andersen COMMISSIONER STRIKE referred to AMC L. regarding delivery and loading spaces, noting that the concern is that we have the unfortunate knowledge of what is being looked at in a forthcoming case for the rest of the Mall. His concern has to do with consistency and that we, as a body, are being consistent across the board for this development; and not viewed later as being inconsistent. One of the areas highlighted is the delivery and loading space, and this Commission never required any qualifications or put any restrictions on the delivery times. It did not appear to be an issue, but he wants to make sure we are not being inconsistent when viewing future cases and developments in this same mall area. We do want to see a consistent policy or practice of setting the hours to protect pedestrians as they walk through; and we have three areas that are currently identified as a loading dock in this mall area, yet we are going to have the same pedestrian issues across all three. CHAIR ROBINSON stated that, from a general standpoint, he is not prepared to suggest altering something he knows nothing about, which is when deliveries are appropriate or not appropriate in a commercial mall setting. COMMISSIONER STRIKE just wanted this to be on record prior to reviewing two future development plans that we are not setting a precedent by how we treat one area of the Mall versus the other areas of the Mall. These pertains to the Sears store and the Mall at Sears.

6 April 9, 2018 Page 6 of 14 MR. WHITFIELD mentioned that it is important to point out the different codes that are applicable to this case versus future cases. This case, Nordstrom Rack, was reviewed under the old Title 21, which has different standards than the new Title 21 and the upcoming case to be heard this evening and the case being heard next month. COMMISSONER SPRING believes the most recent submittal meets all of the standards for a large retail site plan establishment and some of these are listed below. Vehicular Access: Traffic Impacts: Drainage: He does not think there was any controversy regarding this. Vehicular access to the Mall is from Northern Lights Boulevard, Benson Boulevard and Seward Highway and it clearly meets this standard. There was not a Traffic Impact Analysis (TIA) required for this. There is plenty of capacity on the adjoining streets and this is not going to significantly increase the traffic and cause the need for traffic improvements. A site drainage and grading plan shall be submitted. For all developments, the petitioner is required to submit these plans as part of the building permit. He believes the petitioner has already done this and sees no evidence that this is controversial, or that there have been any objections. Visual/Noise Buffers: Large retail establishments shall provide a landscape plan that provides acceptable visual and noise buffers. He thinks the landscape is far superior and really looks nice. It makes a big improvement with the pedestrian environment and it looks much, much better when driving from Northern Lights. He wishes it could be applied to other parts of the Mall eventually, and believes it will in future site plans that come before the Commission. Outdoor Storage or Display Areas: Trash Collection and Recycling: Snow Storage or Removal: Parking: Pedestrian Access: There is no plan for any outdoor storage or display areas as part of this site plan. The petitioner has enclosed the proposed trash receptacle on the north side of the building. This requirement has been met. There is already a snow storage and removal plan for the site and they do have sufficient snow storage on the site. This meets the requirement. According to the staff report, this meets the requirements for Nordstrom Rack as well as the Mall. This particular site plan makes the pedestrian access much better, especially from Northern Lights Boulevard, and around the building from the parking lot to the doors of the Mall.

7 April 9, 2018 Page 7 of 14 Community Spaces: Delivery and Loading Spaces: Exterior Signs: Outdoor Lighting: Northern Design Elements: Aesthetic Characteristics: These are provided internally to the Mall. The idea of a Mall is to provide indoor space for people to congregate and visit, and by definition of a Mall, it does provide community space. These operations shall be designed and located to mitigate visual and noise impacts. The loading dock is on the north side of the building. The petitioner has painted and used materials that are designed to mitigate the visual impact of the building. He does not think there will be any additional noise impacts than any of the other loading or delivery docks. There are no new signs included in the project. Exterior signage will be provided under future tenants and permitted separately by the building owners. The application states and staff support that the down lighting is sufficient to reduce the effects of lighting in the surrounding area. No new site lighting has been proposed. The east side of the Mall has an entry feature. According to the new submittal, they also incorporated a new canopy on the west side. This is part of the overall improvements that are required to come into conformance with retail site plan reviews. The facades and exterior walls, including the side and back walls, are to be designed in order to reduce the appearance of massive scale or a uniform and impersonal appearance and to provide visual interest. There were some improvements on the north side to enhance the visual appearance. He saw nothing in the staff report suggesting that they were not in compliance. The existing Sears store entry was remodeled with a parapet to break up the front face of the Mall to improve the aesthetic characteristics. In regard to the detail features, the design shall provide architectural features that contribute to visual interest at the pedestrian scale. The exterior renovation is an improvement from the existing façade as it was pretty bland beforehand. He thinks the Nordstrom Rack entryway is aesthetically acceptable and is an improvement, overall, on the east side of the Mall. There are really no changes to the roof lines or heights, so there is no problem with the acceptance of the standard for roof design. Pertaining to materials and colors, the building shall have exterior building materials and colors which are aesthetically pleasing. It looks to be consistent and the renovations on the exterior facades are very consistent throughout. He sees no objection from staff regarding what was proposed and what, he hopes, will be accepted.

8 April 9, 2018 Page 8 of 14 The entryways shall be designed to orient customers and add aesthetically pleasing character to the building. There were several additional entryways that included Nordstrom Rack and the west side of the building. These seem to be acceptable and very standard as far as providing protection from the weather, and the design elements are also acceptable. With regard to the screening of roof or ground-mounted mechanical equipment, the screening that exists on the north side of the Sears building rooftop blocks the mechanical equipment sufficiently. This standard is met. CHAIR ROBINSON added that the Commission had previously discussed the ten percent rule. This body has found that, with regard to AMC , full compliance to a large establishment would require such significant changes to both building and the site that it would cause undue economic hardship to the owner. What we have here is a presumption that the existing site plan, before we heard this case, was an approved site plan, even though it clearly differed from the standards that were written much later after the construction of the original building. The petitioner has applied the ten percent rule adequately and, he thinks, the findings show that the site plan is consistent with AMC We did hear a significant amount of testimony at the previous meeting and a lot of that testimony centered on patrons to the overall Mall being able to navigate and wayfind, and there was also a commitment to add some wayfinding from the Mall to the Nordstrom Rack. The Commission has indicated a condition to go along with the approval that states, Any reconfiguring of the Sears store will include a more direct passageway through to the east side and that will be an excellent enhancement at some future stage. He will be supporting the motion as amended. MAIN MOTION AS AMENDED RECUSED: Robinson, Spring, Spinelli, Barker, Strike, Looney, Gardner Bailey, Andersen Agenda Item E(2) was postponed to May 7, CASE: (SMO) PETITIONER: Municipality of Anchorage Public Works REQUEST: he Assembly of an Ordinance Amendment to: 1) repeal and reenact Anchorage Municipal Code (AMC) Subsection B. to update provisions regarding Stream, Water Body, and Wetland Protection, 2) amend AMC Chapters and to transfer variance authority for variances from stream, water body, and wetland protection regulations to the Zoning Board of Examiners and Appeals 3) add a new section to AMC Chapter regarding nonconformities with said protections and setbacks and 4) amend AMC Section , Definitions, accordingly.

9 April 9, 2018 Page 9 of 14 F. REGULAR AGENDA - 1. Resolutions for Approval 2. Introduction for Public Hearings 3. Site / Landscape Plan Approval 4. Time Extensions; Expedited Hearing Requests; Minor Conditional Use Amendments 5. Other G. PUBLIC HEARINGS Commissioners Bailey and Andersen returned to the meeting. 1. CASE: (FDM) PETITIONER: Rancho Mesa Partners, LLC REQUEST: Conditional Use Permit for the bulk storage of hazardous materials for proposed Rancho Mesa Bulk Fuel Storage and Terminal Facility in the I-2 (Heavy Industrial) District within the Port of Alaska. FRANCIS MCLAUGHLIN presented the staff report and recommendations on behalf of the Municipality's Planning Department. MICHELLE MCNULTY with DOWL represented the petitioner. DAVE KORPI with Great Northern Engineering, DANIEL TO with Rancho Mesa Partners, and Sharen Walsh with the MOA Port of Alaska were also present. The Commission discussed spill prevention control; the type of fuel stored; benzine and air quality risks: and the land use designation of potential open space alternative. CHAIR ROBINSON opened the hearing to public testimony. The following individuals testified: ARNIE COHEN, President, Government Hill Community Council STEVE GERLEK REVEREND SHELLY PAGEMS MS. MCNULTY provided rebuttal testimony. MR. TO and MR. KORPI assisted in responding to questions from the Commission. CHAIR ROBINSON closed the public hearing.

10 April 9, 2018 Page 10 of 14 COMMISSIONER SPRING moved in Case to approve a Conditional Use for bulk storage of hazardous materials at the Port of Alaska in the I-2 (heavy industrial) district, subject to Conditions of Approval 1, 2, 3 (a and b) on page 5 of the staff report. COMMISSIONER LOONEY seconded. COMMISSIONER SPRING thinks the petitioner had done a very good job of addressing the conditional use standards, particularly the consistency with the Comprehensive Plan. Even though there is an alternative park involved in the land use plan, it specifically mentions transportation uses on this site, so he thinks it is consistent. It is consistent with the I-2 zoning district. The proposed use is consistent with applicable use and there are no usespecific standards for storage tanks of this type. The site size, dimension, shape, location and topography are adequate to meet the needs of the proposed use and any mitigation needed to address potential impacts. The tank site is 650 feet from the neighborhood and there is a significant topographic barrier there since the bluff rises above this site. That also helps to mitigate the impacts of any potential fire hazard or explosion. The use will not alter the character of the surrounding area as the surrounding area is full of similar types of storage tanks. In fact, there are storage tanks already closer to the Government Hill area than this proposed location. Any significant impacts anticipated to result from the use will be mitigated or offset to the maximum extent feasible. There is consideration to the geotechnical hazards that are incorporated into the design, according to the report by Shannon Wilson, and he thinks they did a good job on this. There is also spillage containment surrounding the storage tanks that look to be fairly significant and robust. The use is appropriately located with respect to the transportation system. It has to be near the Port because the gasoline will be conveyed via pipelines and there is a pipeline used to convey it to the airport, so this is probably the only site, with respect to transportation, that it could be located in. The proposed use is appropriately located with respect to existing and planned water supply, fire and police protection, wastewater disposal, storm water disposal, and similar facilities and services. This is one condition that he will have to rely on the comments made by staff and the Fire Department that they will review this proposal and make a determination whether or not there is adequate fire protection. He is a little reluctant to agree that it meets the standard before the review is done without some type of contingence condition and would like to propose an amendment to address that. COMMISSIONER BAILEY concurred with most of Commissioner Spring s comments, but would like to speak primarily to Standards 5, 6 and 9 since these were the specific issues that the Government Hill Community Council raised. She is satisfied that the condition is met by taking the Fire Department at their word that if the fire protection is not adequately met, a building permit will not be issued and that a building permit will be required prior to the development of the site. However, she does understand why that is a concern for the Government Hill Community Council and thinks that is a good representation of why we have these systems in place. With regard to Condition 6 and not being compatible with adjacent properties, she understands that it is adding three more tank facilities to a structure, but, again, these are facilities of which many are closer and contain the exact same device; and this is, as Ms. McNulty pointed out, a newer, more up-to-date structure. It is the same use in a location that is further away. She is having trouble reconciling Condition 5 and whether this could be safely provided in that area, and basing it off of the studies, the HUD recommendations as well as the very conservative approach, which did not take into effect those geographical discrepancies. It does seem like this is providing the

11 April 9, 2018 Page 11 of 14 safest possible area for putting these tanks in. She definitely understands the Government Hill Community s concerns for these, but also appreciates the extra caution that was taken to ensure the safety for these communities, if this is to be built; and believes that Standard 5 is also met. COMMISSIONER SPRING explained that his concern regarding Standard 9 is what happens if it is not approved. The Commission has a conditional use that we approved and it is just sitting there and is still in effect, but the project is not going forward. CHAIR ROBINSON stated that it would not, unless they redesign it and figure out how to obtain approval from the Fire Department. Any significant alterations to the design would need to come back before this Commission. COMMISSIONER ANDERSEN expressed that he is only having difficulties with Condition 6 and being compatible with adjacent properties. He does not 100 percent agree that a residential neighborhood is a compatible use with a bulk fuel storage facility; and does not know how to approach that exactly when considering that their existing use is where they are at. Being provided the engineering justification and the discussion with the engineers as a basis for understanding what the risk is, he would defer to those studies to being a use that can be compatible with certain understandings of how it is used. Robinson, Spring, Spinelli, Bailey, Barker, Strike, Looney, Gardner, Andersen CHAIR ROBINSON thanked the consultant and the community, noting that this is a tough use. He appreciated the manner in which everyone brought their arguments and feelings forward this evening. Agenda Item G(2) was postponed to May 14, CASE: (SMO) PETITIONER: Dimond EAT, LLC REQUEST: Request to Rezone three parcels from B-1B SL to B-3 SL 3. CASE: (SC) PETITIONER: Gottsten Properties, LLC REQUEST: Major Site Plan Review requested by Gottstein Properties, LLC for the Carrs Store Remodel. SONNET CALHOUN presented the staff report and recommendations on behalf of the Municipality's Planning Department. The Commission discussed a Traffic Impact Analysis (TIA); pedestrian crossing safety at the proposed north-south access driveway; and snow storage plans. They also discussed interior hanging bicycle racks for the general public and no sidewalk access from the bicycle racks to Nordstrom Rack.

12 April 9, 2018 Page 12 of 14 CHAIR ROBINSON opened the public hearing. SCOTT PULICE with Lounsbury & Associates represented the petitioner. Robert Mintz with Carr-Gottstein was also present. CHAIR ROBINSON opened the hearing to public testimony. There was no public testimony. MR. PULICE provided brief rebuttal testimony. CHAIR ROBINSON closed the public hearing. COMMISSIONER SPRING moved in Case to approve a Major Site Plan Review of a Large Commercial Establishment for renovation of the former Carr's store at the Sears Mall, subject to Conditions1, 2 (a through g) and 3 listed on pages 16 and 17 of the staff report. COMMISSIONER STRIKE seconded. COMMISSIONER SPRING commended staff for addressing every finding and criteria that is applicable. He thinks this is one of the better site plans he has seen and summarized his findings below. 1. The two community spaces outside are going to be a real plus. 2. The bike racks could be a standard for the entire city. He wishes everyone would install these. 3. The landscaping of the parking lot is going to be a major enhancement. This has been a real concern of his since he s lived here, and the fact that there is hardly any landscaping in the Sears Mall, but it was one of the first ones built. 4. Aesthetically the exterior is going to be a major improvement. It will be a real benefit and a spur to development in this area of Midtown, and will help revitalize the Sears Mall. He had his doubts at one time or another that the Sears Mall would survive, but he now has faith that it will be a very healthy retail center for Anchorage. COMMISSIONER STRIKE will be supporting the motion. He noted that no public testimony was heard regarding this proposal. Representatives for the adjoining property were also present and provided no testimony for or against the proposal. COMMISSIONER BAILEY finds that this appears to bring it into compliance with the new zoning codes. She appreciated how laid out all of the calculations were as it made this finding much easier to determine. There was also community council outreach and there did not appear to be any opposition. CHAIR ROBINSON will also support the motion and noted that DOT&PF does mention an objection to the site plan, and we did hear that staff and the petitioner are working with them. He expressed that he does not fully understand their comment, but what he believes is the case is that we are in an area of state roads, local roads, and major privately owned super blocks; and this site is certainly a super block and a super mall. He thinks what DOT&PF is suggesting is that some of the circulation patterns that need to be creatively looked at for Midtown, should actually be something. We are looking at the improvements to

13 April 9, 2018 Page 13 of 14 this site and it is an improvement, but the streets surrounding this area are horrendous. There are terrible pedestrian accesses on Northern Lights,Benson Boulevard, and on Denali. He is not saying that these accesses have anything to do with the petitioner, but what he hears is an opportunity, perhaps in the future, and asked the owners of sites such as this to be open to some of those solutions, if there are solutions that would actually help people get to and from their site in a better way. The petitioner has done a good job in coming towards conformity. It is always a challenge to take a large existing site and make those improvements, but it seems they have addressed the areas that make the most sense at this time. COMMISSIONER BARKER will be supporting the motion. It is very encouraging to see a project coming forth that supports the Comprehensive Plan in a way that is conducting redevelopment and reuse of a large vacant property located in the middle of one of our high growth areas in the city. She commended the petitioner for their efforts. Robinson, Spring, Spinelli, Bailey, Barker, Strike, Looney, Gardner, Andersen H. APPEARANCE REQUEST - I. REPORTS - 1. Chair 2. Secretary 3. Committee a. Title 21 Committee - Robinson b. Citizens Advisory Committee - Spring c. TSAIA Master Plan Committee d. Wetlands - Strike e. Live, Work, Play Housing Focus J. TITLE 21 DISCUSSION - K. COMMISSIONERS' COMMENTS -

14 April 9, 2018 Page 14 of 14 L. ADJOURNMENT COMMISSIONER STRIKE moved to adjourn. COMMISSIONER GARDNER seconded. Robinson, Spring, Spinelli, Bailey, Barker, Strike, Looney, Gardner, Andersen The meeting adjourned at 9:15 p.m.