DRAFT

PAPILLION BOARD OF ADJUSTMENT

APRIL 8, 2008– 7:00 PM

The Papillion Board of Adjustment met in open and public session at the Papillion Council Chambers on Tuesday, April 8, 2008 at 7:00 p.m. Chairman Michael Mallory called the meeting to order. Planning Assistant Michelle Wehenkel called the roll. Members present wereDavid Barker,Jan Huff,Herb Thompson,and Robert Tribolet.Alternate Brian Hovey was not present. City Planner Rebecca Hornerwas present. The Acting City Attorney Jeff Wagner was present.

Notice of the meeting was given in advance by publication in the Papillion Times on March 27, 2008. Copies of publication are on file at the Office of the City Clerk.

Chairman Mallory led those present in the Pledge of Allegiance.

APPROVAL OF THE AGENDA

Motion by Mr. Thompson,seconded by Mr. Huff, to approve the agenda. Roll call: Five yeas, no nays. Motion carried.

APPROVAL OF THE BOARD OF ADJUSTMENT MINUTES OF SEPTEMBER 11, 2007

Mr. Huff asked if Jim Glover’s title could be added to the minutes. He indicated that Mr. Glover is the principal of Papillion-LaVistaHigh School. Mr. Huff noted that the update to the sign regulations was discussed as other business at the previous meeting. He asked for a status on the update. Chairman Mallory deferred to the Planning staff. Ms. Wehenkel advised that the update to the zoning ordinance received a recommendation of approval from the Planning Commission and it is pending City Council.

Motion by Mr. Barker, seconded by Mr. Tribolet, to approve the September 11, 2007 minutes. Roll call: Five yeas, no nays. Motion carried.

PUBLIC HEARING

To consider a request for a variance from §205-35B(10)(a), §205-35B(10)(b), and §205-51D, for the property legally described as part of Lot 4A1A, Huntington Park, a subdivision as surveyed, platted, and recorded in Sarpy County, NE, generally located at 11111 S. 84th St. The applicant is AlegentHealthMidlandsHospital. VAR-08-0003

Chairman Mallory opened the public hearing.

Kevin Nokels, 9690 Meadow Dr. (Omaha), the site administrator for Alegent Health Midlands stepped forward as the applicant. He introduced Frank Emsick the Vice President of Construction for Alegent Health and Gordon Malm the System Architect.

Gordon Malm, 12809 W. Dodge Rd. (Omaha) provided an overview of the site plan, which shows the existing building and the proposed addition. The proposed addition will include a medical office building. It will have a diagnostic component, dietary component, and an expansion of the Emergency Department services. Mr. Malm explained that the proposal is addressing site and parking issues. The hospital is landlocked by other properties, which limits the land available to develop parking, pedestrian access, and facility maintenance and supply. He advised that the proposal for the new addition was initially for a four story building with an option to expand to five or six stories. Mr. Malm indicated that the first meeting with the Planning Department occurred in April 2007. When the hospital was built in the 1970’s, it was done under SarpyCounty zoning. The zoning designation was changed to R-4 (High Density Residential) when the hospital came under the city’s jurisdiction. Mr. Malm advised that the existing building is 90 ft. to the too slab. The materials can be seen on the elevation exhibit. The MedicalOfficeBuildingis proposed to be six stories and will be 82 ft. from the ground to the top of the building. The present zoning of the building is O (Office). The maximum allowed height in the Office District is 60 ft. The hospital is requesting a variance to allow for the building to exceed the 60 ft. regulation. Mr. Malm explained that the hospital, as a non profit organization, wants to bring the best health care possible. The goal is to attract the physicians that are needed to maintain the hospital and provide that level of care. The medical office building will be an attractive location to offer skilled medical care. Mr. Malm explained that the hospital wants to locate the doctors by the patient floors in the existing building, which are floors four through seven. The medical office building floors four through six will align with the corresponding floors in the existing building. If the variance is not granted, then only the fourth floors of the buildings would match. He advised that much thought has been given into the best way to provide current, state of the art medical practice. Mr. Malm indicated that the interest in the proposed addition justified increasing the height to six stories.

Frank Emsick, 12809 W. Dodge Rd. (Omaha), advised that they have received physician commitments for 73% of the physician space in the proposed addition. The medical office building will provide a facility that will assist with recruiting and maintaining physicians.

Gordon Malm advised that the hardship in stopping the addition at 60 ft. is the site issue of being able to provide parking adjacent to the building and support functions. They want to provide parking near the building so it makes sense to build vertically. Mr. Malm explained that the hospital wants to continue to expand the Emergency Department, surgery facilities, and diagnostics so it is important that the medical office building not take up that space. Mr. Malm observed that the original hospital was well built. It consists of pre-cast concrete with brick on the north and west sides. In 2001-2003, the hospital was expanded and a hill was removed to expose level one as the new entrance. The new lobby was built with pre-cast that has a stone-like quality, aluminum framing, and an aluminum storefront system. The new addition is designed with the same materials including pre-cast concrete, an aluminum storefront system (representing the windows), and pre-cast that has a stone-like quality. Mr. Malm explained that the intent is to blend the new addition with the existing structure. He advised that the facility will look monolithic with the new addition complimenting the existing structure while adding new imagery. The new addition will have sloping glass at the front entrance. He noted that the new addition will have new elements but there will be continuity. Mr. Malm advised that pre-cast concrete was approved for the original building; however, it is not allowed at this time. He advised that it is in the best interest of the community that they be allowed to continue the use of the materials in the existing hospital.

Chairman Mallory called for proponents and opponents.

Kevin Nokels advised that the hospital has seen tremendous growth in the last five years. He observed that MidlandsHospital is one of the largest employers in SarpyCounty. The hospital has added 125 new fulltime jobs with an average pay rate of $24.50 per hour. They are recruiting physicians. Having physician in the hospital will make it more convenient for physicians to have access to their patients which improvespatient experience. The new addition will allow for the doubling of the size of the diagnostic imaging area, which will increase capacity. Mr. Nokels advised that the Emergency Department was expanded in 2003 to handle 18,000 visits per year, which was based on planning from 1999-2000 when there were 10,000 visits per year. The number of visits this year will exceed 20,0000. He noted that the hospital is growing with the community. Each doctor adds approximately 2.5 jobs. Mr. Nokels advised that the proposed addition ties in with the feeling of the existing hospital. It will be a continuous looking campus.

Mr. Tribolet advised that he visited the hospital and the iron work for the addition appears to be at the height depicted in the drawing. He asked if the iron work is set for a six story addition. Mr. Malm confirmed that the iron work is set for the proposed six story addition. He explained that the hospital was not sure if the new addition would be expanded to five or six stories at the time of the initial meeting. It was shown as an option in the plans that were presented. Mr. Malm advised that they consulted with city staff. It was determined that the building would exceed the allowedheight. According to Mr. Malm, the Planning Director discussed changing the zoning ordinance as that would be the best avenue to address the issue. At that time, it was estimated that the updated zoning ordinance would be adopted in two to three months; however, the timeframe for adoption has been extended. Mr. Malm explained that in the interim management accepted the alternative design with six stories. He acknowledged that they should be been timelier in addressing the issues when it was realized that the steel would be up before the zoning ordinance was updated. He advised that immediate action would need to be taken if the variance is not granted.

Mr. Huff asked if it would be possible to add a two or three story parking facility. Mr. Emsick explained that they considered adding covered parking; however, funds are limited so they must be spent judiciously. The focus needs to be onattracting physicians. Mr. Nokels advised that the entry points to the hospital may be changed as 84th St. is redeveloped. They current meet the requirements for parking. The plan is to offer valet parking. The hospital has ample parking; however, proximity to the door is a challenge. He advised that the facility has the ability to offer additional parking; however, that will depend on what the city wants to do with the current entry.

Mr. Huff asked if the six floor addition would cause any problems with the FAA or Offutt Air Force Base. Mr. Malm confirmed that it would not cause problems.

Mr. Thompson requested clarification on whether or not the medical office building would add beds for the hospital. Mr. Nokels advised that 60% of the building would be physician office and 40% would be for support space. The support space would allow for support space for a new critical care unit, an expansion of the Emergency Department from 11 rooms to 21 rooms, a doubling of the space for diagnostics including a women’s imaging center, and an increase in the dining/dietary areas. Mr. Emsick advised that the patient rooms will be made single occupancy. Mr. Nokels advised that all the patient rooms will be private, which uses the additional bed capacity created by moving services into the new addition.

Mr. Thompson questioned how far out the new addition will carry the facility. Mr. Nokels explained that the addition of the medical office building will carry the hospital including bed capacity to 2020. The Emergency Department will be able to handle 36,000 visits per year. Mr. Nokels indicated that the next bed tower expansion will occur in 2025. The hospital currently has five operating rooms. The plan is to add four additional operating rooms off of the south side of the hospital. He advised that the operating room expansion is a few years out.

Mr. Huff asked Mr. Malm to summarize the timeline. Mr. Malm advised that hospital representatives met with Mark Stursma, Blas Hernandez, and Pat Martin in April 2007. They provided plans showing a four story addition with an option to build to five or six stories. Mr. Malm was not at the meeting; however, the minutes indicate the discussion included exceeding the 60 ft. maximum height. It was determined that the zoning ordinance update may be the best way to address the hospital’s needs. The existing hospital is 94 ft. in height while the proposed addition is 82 ft., which is a floor below the existing structure.

Mr. Huff questioned if the hospital had been in contact with the Planning Department since they learned that the proposed materials are not allowed in the HWY 370 Overlay District. Chairman Mallory advised that the variance includes a request related to building materials. He advised that the HWY 370 Overlay District was adopted by Papillion’s jurisdiction.

Mr. Huff asked if SarpyCountyadopted the HWY 370 Overlay District regulations. Ms. Horner explained that both the city and the county have adopted HWY 30 Overlay District regulations. She advised that the Planning Department and applicant met multiple times regarding the overlay.

Mr. Huff asked what SarpyCounty’s thoughts were regarding the proposed addition. Ms. Horner and Chairman Mallory advised that the hospital is within the city’s jurisdiction.

Chairman Mallory asked if any part of the new addition would exceed the height of the existing building. Mr. Malm advised that the new addition will exceed the height of the existing building.

Chairman Mallory noted that the staff report indicated that there are two hospitals in SarpyCounty. He asked where the other hospital is located. Mr. Nokels advised that the other hospital is planned to be located in Bellevue.

Mr. Malm showed the schematic of the new addition. It shows that the new six story addition is lower than the seven story hospital.

Mr. Thompson requested that the hardship be summarized. Mr. Malm advised that the hardship for height is the inability to provide adequate space for attracting physicians and the day to day operations of the physicians with respect to contact with their patients. He advised that hardship related to material is that the hospital building could lose value if the addition does not match the existing building.

Seeing or hearing no additional comment from the public, Chairman Mallory closed the public hearing and asked for discussion amongst the Board.

Mr. Huff disclosed that his wife works for Nebraska Health Systems, which is constructing the hospital at HWY 370 and 25th St. He asked if that would be considered a conflict of interest. Mr. Wagner advised that it would not be a legal conflict of interest; however, Mr. Huff could abstain from the vote if he felt he personallyhad a conflict. Mr. Huff advised that he did not need to abstain from the vote.

Mr. Tribolet questioned if the applicant would still need to request a variance should the updated zoning ordinance be adopted. Chairman Mallory advised that a variance may not be needed. He referenced the comments in section C2 of the Board of Adjustment staff report. He noted that a variance in height may still be required. Ms. Horner advised that it is not clear if a variance would be needed. At the time that the staff report was written, the amended height was not final. She advised that the applicant was given the option to wait until the amendment was adopted or request the variance. The applicant chose to request a variance because there is not a schedule for adoption of the updated zoning ordinance. She noted that the City Council may not approve all of the proposed changes to the zoning ordinance.

Mr. Thompson asked if there is a practical reason for why pre-cast concrete is not allowed. Ms. Horner advised that she was not present when the regulation was adopted. Her understanding that the City Council and Sarpy County Board were not pleased with a few examples of the use of pre-cast concrete in the corridor. Over time, it was realized that it was the use of the materials that was at issue. She noted that the City Council and Planning Department are not opposed to the appropriate use of pre-cast so the proposed zoning ordinance amendment addresses the form rather than the material.

Mr. Thompson asked if it is not allowed for safety or aesthetic reasons. Ms. Horner advised that the use was originally restricted for aesthetic reasons. Chairman Mallory advised that he was a member of the Planning Commission at the time that the design guidelines were adopted. He noted that many public meetings were held at the time. Input was received from builders, residents, and developers. They saw examples from other places. Chairman Mallory explained that HWY 370 is the gateway to Papillion so the goal was to make it aesthetically pleasing and uniform. The current HWY 370 Overlay District regulations are the first cut done based on the input available at the time. He noted that the plan did not anticipate some circumstances such as an addition to the hospital.

Mr. Barker observed that the addition would not be aesthetically pleasing and uniform if the applicant is not able to use the same materials as thehospital. If it is not aesthetically pleasing and uniform, it would be a hardship to the hospital and the community. It would be a hardship If the applicant is required to use different materials. Chairman Mallory agreed with Mr. Barker’s assessment.

Mr. Huff asked for a brief description of the area that falls within the HWY 370 Overlay District. Chairman Mallory estimated that the corridor runs from 48t St. to 114th St. one mile north and south of HWY 370. Ms. Horner advised that the corridor runs from ½ mile to one mile north and south depending on the location. It extends to 132nd St.

Mr. Huff questioned if it is common for an entity to proceed with a project without proper authorization such as the erection of steel structure. Ms. Horner deferred that question to the Building Department since they are responsible for issuing permits and conducting inspections.

Mr. Huff asked if Blas Hernandez was responsible for the Building Department. Ms. Horner advised that Mr. Hernandez was the Chief Building Official at the time that the project was initiated. The Building Department is now headed by a different person.