Adopt Resolution #23-235 Approving a Conditional Use Permit from Dehn Oil at 6651 141st Avenue NW

The City has received an application for a Site Plan and Conditional Use Permit from Dehn Oil (the "Applicant") to construct above ground fuel tank storage, an access road, and a paved storage area at 6651 141st Avenue NW (the "Subject Property"). The Applicant is a wholesale marketer of refined products and renewable fuels, and supplies and delivers services for unbranded and branded gasoline, diesel fuel, bio-diesel, gasoline with ethanol, and a full line of lubricants. The Applicant recently purchased the Subject Property to expand their business operations.

Subject Property
The Subject Property is located along the north side of 141st Avenue NW, between Ebony Street NW and Basalt Street NW, and is approximately 10.18 acres in size. It is zoned E-2, Employment District, and is guided as Business Park. The construction, storage, and operation of above-ground fuel tanks, both empty and full, are classified as Open and Outdoor Storage as a Principal Use, which is a Conditional Use in this zoning district. The Subject Property abuts employment zoned property to the west and north, PUD zoned property to the east, which is designated for employment land use, and is across 141st Avenue NW from employment zoned property. The Subject Property itself is currently used for industrial businesses.

Existing Site Conditions
The existing building is occupied by several industrial-use tenants. The Applicant's office is located on the adjacent property to the west. The Applicant uses the rear yard of the Subject Property for outdoor storage and processing of demolition concrete and bituminous, as allowed by the existing CUP #12-05-070, adopted by City Council on May 22nd, 2012. Additionally, the rear yard is currently being used for the storage of vehicles, both operable and inoperable, and the storage of various items related to the Applicant's business. There is a storm water detention basin located at the far north end of the Subject Property; no work will take place within the basin.

The above-ground fuel tanks were installed prior to the Applicant becoming aware of the City's permitting requirements for such equipment. Upon discovering the tanks, Staff instructed the Applicant to apply for a CUP to allow for the site to be brought back into compliance followed by the appropriate Fire permits.

Proposed Use
The Applicant is proposing the construction of above-ground fuel tank storage, two above-ground supply tanks, an access road, and a paved storage area in the rear yard of the Subject Property to accommodate their business operations. There will be no changes to the existing building on the Subject Property as part of this application. To comply with Fire Department regulations, the Applicant is also proposing to install bollards and a six-foot-tall fence around the two above-ground fuel tanks. The fence will have gates that open to the west, east, and south, to allow for vehicular access and snow removal. Additionally, the access road and paved storage area will be installed to accommodate the storage of above-ground fuel tanks, per Fire Code requirements. This installation of paved surfacing will decrease the area used for the storage and processing of demolition concrete and bituminous.

Since the Applicant is proposing to make substantial site improvements to the Subject Property, a Site Plan review is required with a recommendation from the Planning Commission and final approval from the City Council. Additionally, since this application involves the use of fuel storage, the Fire Marshal has been intensively involved in the review process and has worked with the Applicant to bring their plans into compliance with Fire Code.

The plan set and Staff review comments at the time of writing this case, along with Resolution #23-235 to approve both the Site Plan and CUP, are attached for review.

Access & Parking
Access to the site is provided via two driveways onto 141st Avenue NW. The proposed access road and paved storage area will be an extension of the existing paved area on the north side of the principal building on site. There will be no change in access to 141st Avenue NW, and there will be no change in parking requirements for the Subject Property with this project.

Staff Comments
This CUP would allow for the construction and operation of two above-ground fuel tanks, storage of empty above-ground fuel tanks, an access road, and paved storage area on the Subject Property, in accordance with the E-2 Employment District standards. All of these items require a Site Plan Review as well as the CUP. As noted above, the above-ground fuel tanks were already installed without first obtaining permits from the Fire Department or obtaining a CUP. Thus, this CUP is intended to retroactively bring the Applicant into compliance with City Code. Staff are open to additional conditions that the City Council may desire to incorporate. 

At the time of the case writing, the first and second rounds of review from City Staff have been fully conducted. As part of reviewing the application, Staff inspected the site and noticed an accumulation of junk and debris. Additionally, staff noticed that the existing stockpiles exceeded the height and area requirements outlined in the previously-approved CUP. The Applicant shall bring these items into compliance with City Code and the terms of their existing CUP before issuance of the new CUP can take place.

The only remaining items to be addressed in Applicant's submittal relate to the Engineering staff's requirements for corrected verbiage in the stormwater report, and adding match lines and turning templates to the paving plan. Engineering staff are currently working on their review of resubmitted plans, received from the applicant on September 6th, which may address the outstanding items.

As mentioned above, Staff review comments are attached to this case.

Public Correspondence
At the time of the case writing, staff have not received any comments or questions regarding the application.

Alternatives
Alternative 1: Approve the Site Plan and Conditional Use Permit as recommended by the Planning Commission. Open and Outdoor Storage as a Principal Use is a conditional use in the E-2 Employment District and the proposed Site Plan appears to meet the bulk standards of this district. The request is a reasonable industrial use of the Subject Property.

Alternative 2: Approve the Site Plan and Conditional Use Permit with additional changes based on City Council discussion.

Alternative 3: Deny the Site Plan and Conditional Use Permit based on certain findings.

Alternative 4: Direct Staff to schedule a Revocation of Conditional Use Permit hearing based on non-compliance findings with the existing Conditional Use Permit.

All costs associated with this request are the Applicant's responsibility.

On September 28th, 2023, the Planning Commission unanimously voted to recommend adoption of Resolution #23-235 approving the Conditional Use Permit and Site Plan on the Subject Property. 

Motion to adopt Resolution #23-235 approving the Conditional Use Permit and Site Plan for storage of fuel tanks at 6651 141st Avenue NW.