Adopt Resolutions #13-06-102 and #13-06-103 Approving Conditional Use Permit to Operate Motor Vehicle Sales at 7820 Riverdale Drive, Case of Bethel Properties

The applicant, Bethel Properties LLC, has submitted an application for a Conditional Use Permit (CUP) to operate a small business used car dealer office and shop. The proposal acts as a business incubator where individual dealers are provided office space, storage for records, and up to five (5) car stalls on the lot for vehicle display to operate their own individual business. The building will also include two (2) bases for dealer detailing shops. The applicant is proposing this use in the former Monarch Homes building, located at 7820 Riverdale Drive NW.

The Property is located within the B-2 Highway Business District. Motor Vehicle Sales and Repair is listed as a Conditional Use. Of note, this type of use was previously listed as a Permitted Use prior to 2009, meaning the use would have been approved administratively without special permit or Public Hearing. The use was re-classified as a Conditional Use to provide the City the opportunity to better address enforcement concerns, review each site individually for compatability and adequate size/parking, as well as give surrounding owners an opportunity to review and comment on proposals. It should be noted that a Conditional Use is an acceptable use that the City shall approve unless reasonable conditions cannot be met. The CUP process allows the City to impose reasonable conditions to address concerns that are raised that can be mitigated by additional standards.

Staff attempted to notify all Property Owners within 350 feet of the Property. A Public Notice was also published in the Anoka Union, the Official City Newspaper.

The applicant is proposing the motor vehicle sales operation in an existing building that had previously been used as office space. The building will include nine (9) offices, each designed with its own exterior entrance. In addition, two bays for vehicle detailing will be provided at the rear of the building within the existing workshop space. While no building expansion is proposed, per the applicant's submittal, modifications to the building would be made, including individual exterior entrances to each office and an overhead door for each of the two (2) proposed bays.

Required parking is based on the proposed use. The use contains 2,200 square feet of office space for the nine (9) proposed individual offices. The zoning ordinance requires one (1) space for each 300 square feet of office area, which equates to seven (7) spaces. The vehicle detailing bays require three (3) spaces for each bay plus one (1) space for each full time employee. The bays can accommodate a total of four (4) vehicles combined. The outdoor auto sales space requires one (1) parking space for each ten (10) vehicles displayed for customer parking. The total parking required for the use is fifteen (15) spaces not including the designated customer parking spaces.

The applicant proposes providing five (5) display vehicles per office for a total of forty-five (45) stalls. The site includes surface parking for forty-four (44) stalls with an additional four (4) stalls within the bays. As the use is not a typical office use with multiple employees but rather a series of individual offices (each with a single user) mainly used for internet car sales, and limited display space, Staff is comfortable combining the required “office” parking space with the proposed display area. If this use were to be converted and returned to an office-only use, the required parking would be available.

Based on the need for designating customer and employee parking, there remains thirty-one (31) stalls available for motor vehicle display. Staff is recommending a condition that sets a maximum of thirty-one (31) vehicles for display at any one time. Additionally, no vehicle display shall be located on the street or within unimproved surface areas.

The property abuts residential zoned parcels (R-1 Residential) to the south. Therefore, as outlined in City Code Section 117-115 (e) (14), screening must be provided between the outdoor display area and the abutting residential property. The application did not indicate any proposed landscaping or fencing.

While not indicated anywhere in the application, Staff is recommending that, if the conditional use permit were approved, there be a condition that no outdoor speakers are used on site and that the motor vehicle detailing portion of the business be limited to the hours of 7:00 AM and 7:00 PM Monday through Saturday.

Alternative #1. Approve the request with specific conditions within the permit to mitigate potential nuisance factors and code violations. Motor vehicle sales is considered a conditional use in the B-2 Highway Business District. A conditional use provides the City the opportunity to place reasonable conditions within a permit to ensure that a use does not become a concern. The proposed permit includes conditions that prohibit the use of outdoor speakers, that require screening for the abutting residential property and limits the number of vehicles displayed on the property based on the existing improved surface area. Furthermore, the subject property is within the vicinity of similar or identical uses (motor vehicle sales). With the applicable conditions, Staff is supportive of the request.

Alternative #2. Deny the request. Should the request be denied, Findings of Fact must be adopting specifically stating the reasons why the request is denied. Potential concerns with the proposed use could include the number of dealers operating out of a single site and parking/displaying of vehicles on unimproved surfaces. With a properly drafted permit, these issues could be mitigated and failure to comply with the conditions of the permit could be grounds for revocation. Staff has not observed conditions that would prevent the Applicant from complying with regulations once a permit is issued. Staff does not believe there is just cause at this time to deny the request.

The Planning Commission held a Public Hearing on June 6, 2013 and there were no verbal or written comments received during the hearing.  However, prior to the meeting, Staff did receive a written communication from an individual opposing the request.

The Planning Commission recommends approving the Conditional Use Permit contingent upon compliance with the Staff Report dated May 31, 2013.

All costs associated with processing the Application are the responsibility of the Applicant.

Motion to adopt Resolution #13-06-102 adopting Findings of Fact #0915.

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Motion to adopt Resolution #13-06-103 approving the Conditional Use Permit for motor vehicle sales contingent upon compliance with the Staff Report dated May 31, 2013.