Council reviews sketch plat for former Dairy Queen site; no approvals tonight

City planner Bridal McCann presented a sketch plat for the former Dairy Queen site at 2120 Arboretum Boulevard during a Victoria City Council workshop on May 14, describing a proposed commercial redevelopment and asking for council feedback; no approvals or formal actions were requested.

McCann said the 0.88-acre site currently contains a vacant building that formerly housed a Dairy Queen and a parking lot with 37 stalls. The sketch proposes two commercial buildings — about 1,900 square feet on the west and 2,300 square feet on the east — with 43 parking stalls on site, elimination of the existing Highway 5 access and retention of access to County Road 11. The west building would include a drive-through with stacking capacity planned for up to 15 vehicles and a small outdoor dining patio. Staff noted the site is guided downtown mixed use in the 2040 comprehensive plan and zoned Central Business District.

McCann told council that drive-throughs and permanent outdoor dining are conditional uses under the city code and that the site is within the shoreland overlay for Auburn Lake, so commercial uses there are conditional and subject to an 80% maximum impervious limit in the code. The applicant’s current design showed about 78.7% impervious surface, which McCann said would be compliant with the shoreland impervious maximum and that a variance was not anticipated. The tree‑preservation plan in the submittal showed removal of the four on‑site significant heritage trees; staff said the applicant may seek exemption or mitigation similar to the adjacent Downtown West development.

Developer Carl Runk of Monarch Development Partners and civil engineer Matt Pavick described several iterations of the site design intended to address stacking, driveway geometry and connectivity. Runk said two coffee/restaurant users are prospects for the corner and that drive‑through revenue is an important consideration for potential tenants. Pavick said the design was revised to keep drive‑through stacking from extending onto County Road 11 and that the project team and staff are setting a 15‑vehicle stacking minimum for this use.

Council members pressed staff and the developer on pedestrian connectivity to Downtown West, sidewalk continuity, and whether the site could provide a direct connection to the Lake Minnetonka Regional Trail. Staff and engineering said a connection exists at the west side of the Dairy Queen site but a mid‑site connection faces grade constraints that would make it inaccessible; adding stairs inside MnDOT right‑of‑way could be complicated. Council also raised parking concerns if both spaces became sit‑down restaurants; staff said the design assumes overflow could use adjacent Downtown West parking and that the preliminary plat stage will refine parking and circulation.

McCann said the site lies within the jurisdiction of MCWD for wetland and stormwater rules and that the applicant proposes to connect to Downtown West utilities and regional stormwater infrastructure. She closed by listing five guiding questions for council feedback and said architecture and final elevations will be reviewed in later submittals. The developer said it hopes to submit preliminary and final plans later this summer.

The council provided feedback on flow, pedestrian access and design details. No permits or approvals were granted at the workshop; staff and the applicant will bring a preliminary plat application with more detailed plans for subsequent review.