Introduce Ordinance #18-09 Amending Conditional Uses in the H-1 Highway 10 Business District (Project No. 18-113); Case of Baker White

In late December, 2017, Baker White Inc. (the "Applicant") submitted a building permit application for tenant improvements at 6111 Highway 10 NW (the "Subject Property") to create a new product known as Sample Sticks. After multiple discussions with the City Attorney's office, it was determined that the improvements were for a use that is classified as Light Manufacturing, which is not permitted in the H-1 Highway 10 Business District (the zoning district in which the Subject Property is located). Staff relayed this information to the Applicant, as well as the owner of the property, and after multiple conversations, as well as an update to the City Council, the Applicant proceeded to apply for both a Zoning (text) Amendment to permit Light Manufacturing as a Conditional Use and a Conditional Use Permit (CUP) for this use. This portion of the review is to evaluate the application for the Zoning Text Amendment to allow light manufacturing as a Conditional Use in the H-1 Highway 10 Business District.

Staff has intended to look at the permitted and conditional uses in this district as part of the larger Highway 10 corridor effort. This application has prompted moving this topic forward sooner than previously anticipated. After the Comprehensive Plan Update, Staff will still look at the corridor as a whole and consider permitted, conditional, and accessory uses.

Staff attempted to notify all property owners within the H-1 Highway 10 Business District via standard U.S. mail of the Planning Commission meeting and published the Notice of Public Hearing in the Anoka County UnionHerald.

City Code Section 117-120 (H-1 Highway 10 Business District) currently outlines permitted, conditional, and accessory uses in the district. The intent of the H-1 Highway 10 Business District is to allow for uses that minimize traffic, vehicular access, and facilitate orderly transition of the corridor while allowing the property owners the ability to utilize their property for economic benefit until such time as the U.S. Highway 10 transportation system improvements are initiated.

Light manufacturing is defined in Section 117-1 - Definitions, "Light manufacturing means the processing and fabrication of certain materials and products where no process involved will produce noise, vibrations, air pollution, fire hazard or noxious emission which will disturb or endanger neighboring properties." Staff notes there is no definition of manufacturing or heavy manufacturing in Ramsey's City Code.

The Planning Commission met and held a public hearing on May 3, 2018 to discuss the Zoning Text Amendment. No written or oral comments were received. The Planning Commission recommended approval of Ordinance #18-09, updating the H-1 District to allow for light manufacturing with no outdoor storage as a conditional use. The Planning Commission noted that the current H-1 District regulations do allow for outdoor storage in the side and rear yards of properties under certain conditions. The Planning Commission also noted that other cities allow light manufacturing along their highways and light manufacturing seems to fit with the intent of the district in certain situations.

The Planning Commission discussed the existing outdoor storage regulations in the H-1 District. Outdoor storage is allowed as an accessory use in the H-1 District, so long as the storage meets the following conditions:

• Shall not constitute more than 20 percent of the gross lot area.
• Shall be screened on all sides with 100 percent opaque screening of wood, masonry, or maintenance free material, or other means of screening as approved by the city council. Chain link fencing of any type will not be permitted.
• Shall be surfaced with bituminous or concrete if to be located in the side yard.
• Shall be located in the side or rear yard only.
• Storage area may be surfaced with Class V Gravel in the rear yard provided that:
  • The gravel depth must be at least two inches. The storage area must be setback at least 20 feet from public rights of way. The storage area must be setback at least 35 feet from adjacent residential properties. The gravel surface must be kept free of vegetative cover and routinely maintained. The size of the gravel surface may not exceed the size of areas surfaced with concrete or bituminous on the property or 30 percent of the gross lot area, whichever is less.
• Items stored outdoors shall comply with Chapter 30 of the Ramsey City Code entitled Public Nuisances.

The Planning Commission discussed addressing outdoor storage through the Conditional Use Permit (CUP) process, as no outdoor storage could be a condition of any CUP granted. The permitted storage regulations outlined above address the intended storage in the district. For consistency, staff and the Planning Commission recommended approval of the Zoning Text Amendment, addressing outdoor storage through the Conditional Use Permit process.

Alternatives

Alternative #1. City Council adopts Ordinance #18-09. This would update the Zoning Regulations to allow light manufacturing as a conditional use in the H-1 District. Staff and Planning Commission support this alternative.

Alternative #2. City Council adopts Ordinance #18-09 with amendments. This would update the Zoning Regulations to allow light manufacturing as conditional use with amendments as City Council sees fit in the H-1 District. Staff and Planning Commission would support this alternative if the City Council did not feel the existing outdoor storage regulations address their vision for Highway 10.

Alternative #3. City Council denies Ordinance #18-09. This would leave the Zoning Regulations as-is, which does not allow light manufacturing in the H-1 District. Staff would not support this alternative based on the findings from the Planning Commission and comparisons with comparable communities.

Alternative #4. Table the current application in order to have Staff research additional topics or draft ordinance amendments. Staff would support this alternative if there was specific language or other case studies the City Council felt necessary before making a motion.

The Applicant is responsible for all costs with processing the Application.

The Planning Commission recommends Alternative #1, recommending the City Council adopt ordinance #18-09.

Motion to introduce Ordinance #18-09 amending the H-1 Highway 10 Business District to include Light Manufacturing as a Conditional Use.