Crosslake planning commission denies request to more than double units at Sundance Ridge

On Feb. 27, 2026, the Crosslake Planning Commission/Board of Adjustment voted to deny a variance that would have increased the number of multifamily units at the Sundance Ridge property from 11 to 24. The motion to deny was made by Vice Chair Jeff McGrath and supported by Commissioner Cooper Hanning; the vote was 4–1 in favor of denial.

Planning & Zoning Administrator Jody Grund had read the variance request into the record, noting project details including impervious-surface calculations, a stormwater management plan and that three written comments were received. Grund and commissioners identified a discrepancy between an earlier approval permitting 11 units and current on-site records that showed 12 existing units.

Severson, the applicants’ attorney, told the commission the proposal did not change the parcel’s use and argued that the request could be conditioned to address neighborhood concerns, including a no-subdivision condition. Severson also said the proposal fit the parcel’s location, is on city sewer and that the comprehensive plan supports housing supply and density discussion.

Commissioners and the city council liaison pressed the applicant on management and occupancy details, asking about lease terms, turnover rates and whether a conditional use permit amendment would be required for multifamily in a limited commercial district. Commissioner Joseph O’Leary noted concerns about outdoor storage observed on-site that appeared to violate prior CUP conditions.

Multiple neighbors spoke against the variance during the public hearing. A commenter identified as Johnson asked that the commission table the request and suggested additional testimony by seasonal residents. Neighbor Herzog said the proposal was overintensive for the district and accused previous developers of providing inconsistent information to the commission. Other neighbors raised traffic and character concerns and questioned whether economics would push units toward short-term rental or subsidized housing.

Chair David Fuhs said the commission would review ordinance density rules and stormwater implications for wetlands adjacent to the parcel and asked staff to initiate findings of fact. The official motion to deny cited on-site inspections and survey records submitted to planning staff.

Action details: the motion to deny the variance to increase density to 24 units (adding 13 units) carried 4–1. Commissioners Hanning, Fuhs, McGrath and Graham voted in favor; Commissioner O’Leary opposed.

Next steps: The denial is recorded per the commission’s findings of fact; applicants may pursue options available under Article 8 of the Crosslake Land Use Ordinance, including appeal, and staff will continue ordinance review related to density and stormwater requirements.