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7.1.
CC Regular Session
Meeting Date:
07/09/2013
Submitted For:
Patrick Brama
By:
Patrick Brama, Administrative Services

Information

Title:

Highway 10 Outside Storage: Policy Discussion and Permission to Submit an Interim Use Permit (IUP) Application

Background:

Staff recently received an inquiry to lease City owned land located at 7443 U.S. Highway 10 with the purpose displaying trailers for sale (display of items for sale). 

Attached to this case is the proposal. In summary, M&G Sales (7575 Hwy 10) is interested in leasing City owned land located directly adjacent to their existing business; with the intention of attaining additional product display area (outside storage). M&G's proposal is to improve the new sales/display area surface with Class 5 gravel and to extend their existing fence.

Based on existing City code and previous Council direction (policy), Staff is unable to administratively approve the proposed use.  As a result, M&G has requested the City Council consider a policy change regarding this manner.

Purpose of Case: Respond to inquiry from M&G sales. Additionally, Staff periodically receives similar inquires and would appreciate policy direction and/or confirmation from the City Council regarding this manner.

(1) Policy Direction 
Provide Staff with (A) new policy direction or (B) confirmation of existing policy. A change in policy would necessitate certain zoning code amendments in order to ensure fair and equitable enforcement of existing city code standards. 

(2) Grant Permission to M&G Sales to Apply for a IUP
(A) Allow M&G Sales to submit an application for an IUP or (B) direct Staff to notify M&G Sales the City's existing policy has been confirmed

Notification:

No notification is required at this time.

Observations/Alternatives:

Observations:
Based on City Code, areas for display of items for sale, parking areas, and maneuvering areas must be paved, include continuous curb and be reviewed/approved with a site plan. Gravel surfaces (as proposed by M&G Sales) are not allowed in City Code for outside storage/display areas.

It is noted, if the Council does allow M&G Sales to expand their operation onto City owned property, a Conditional Use Permit may be required for the expansion sales (which is not related to this case).  In 2009, motor vehicle sales and repair was re-classified as a Conditional Use. Because the use was in existence prior to the ordinance amendment, lawful, non-conforming statutes allow the use to continue so long as the use does not expand without proper approval. In this case, the proposed use would be an expansion. Staff will work with the Owner to determine if the proposed use falls within this use category.
 
With that in mind, the City does have the ability to issue an Interim Use Permit (IUP) for this Zoning District to allow for gravel surfaces in unique situations. However, it has been the City’s POLICY to support IUP applications for this waiver ONLY in circumstances where:

(1) Use of heavy equipment would damage an asphalt surface
(2) In areas where a property would be acquired during the term of an IUP (5 years).
(3) When located in the rear yard where the surface is not visible from the public realm and separated from public rights of way by an existing building.

For example, in 2011 the Council granted Quality RV a permit to utilize a class 5 gravel surface for the expansion of their display area (display of items for sale); as it was expected their display area would be acquired as part of the Armstrong interchange project within the next two (2) to four (4) years.

In the instance of M&G Sales, Staff does not believe either criteria is met. Therefore, Staff recommended M&G Sales alter their proposal to meet City Code.
 
(1) Use of heavy equipment?  M&G is proposing trailer sales.
(2) Will the property be acquired during the term of an IUP (5 years)?  No, the expected time line for realignment of U.S. Highway 10 is 10+ years.
(3) Located in rear yard behind building? No.  
 
Additionally, it is Staff's position: it is important to remain consistent on how the City addresses outside storage/display areas. By allowing a gravel surface on a City owned parcel, but not private parcels, will open up the possibility of complaints of unfair application of City Code. This would also be true for allowing for one (1) private parcel, but not the other.

In response to Staff's recommendation, M&G Sales requested the City Council be engaged from a policy perspective regarding this manner. Additionally, because the City owns the Subject Property, the Council would need to grant M&G Sales permission to apply for an IUP.  Lastly, it is important to note, an IUP application comes at a cost to the applicant; and, M&G Sales does not want to waste time and resources in applying for an IUP if the City Council would not grant permission to apply.

Alternatives:

(1) Policy Discussion  
Discuss use of IUPs for outside storage/display areas on surfaces that don't meet existing Code.  In summary, the City Council could provide Staff (A) new policy direction or (B) confirmation of existing policy.  This item could be discussed with this case, or at a later date.

Additionally, if the Council would like, this policy discussion can be expanded further than an IUP (i.e. permanently amending the City's Zoning Code). Staff would request that any policy on granting waivers be limited to parcels that are directly impacted and identified on an approved plan for a public project such as roadway expansion or realignment. Furthermore, Staff recommends that the City Council be cautious on waivers to paving surface directly adjacent to public roadways for aesthetic concerns.

(2) Grant Permission to M&G Sales to Apply for a IUP
If there is a shift in policy, Staff would ask the Council consider allowing M&G Sales to submit an application for an IUP.  If there is not a shift in policy, Staff would ask the Council allow Staff to notify M&G Sales the City's existing policy.

Recommendation:

Policy Discussion: allowing Class 5 gravel surfaces for outside storage?

M&G Sales is a valued Ramsey business, is experiencing significant growth and needs room to expand as soon as possible.   

If there is an expectation that Highway 10 will be realigned in the next five years, or a shift in Council policy, Staff would support a consideration of Class 5 gravel surface if the appropriate City Code amendments were to be approved in order to better document City policies.

If there is not an expectation Highway 10 will be realigned in the next five years, and there is not a shift in Council policy, Staff would not support a consideration of Class 5 gravel surface.

Funding Source:

Preparation of this case is being handled as part of regular Staff duties. If the Applicant submits an Application for an Interim Use Permit, all costs associated with processing the Application are the responsibility of the Applicant.

Council Action:

(1) Policy Direction 
Provide Staff with (A) new policy direction with direction to make necessary ordinance amendments or (B) confirmation of existing policy.  

(2) Grant Permission to M&G Sales to Apply for a IUP
(A) Allow M&G Sales to submit an application for an IUP or (B) direct Staff to notify M&G Sales the City's existing policy has been confirmed.

Attachments

Form Review

Inbox Reviewed By Date
Brian Hagen Tim Gladhill 07/03/2013 01:45 PM
Kurt Ulrich Kurt Ulrich 07/03/2013 02:41 PM
Form Started By:
Patrick Brama
Started On:
07/01/2013 03:59 PM
Final Approval Date:
07/03/2013