Adopt Resolutions #14-03-046 and #14-03-047 Related to a Request for a Conditional Use Permit to Operate a Small Business Incubator for Motor Vehicle Sales at 7850 Riverdale Drive NW; Case of John Buzick

The Applicant, John Buzick, is requesting a Conditional Use Permit (CUP) to operate a small business incubator for motor vehicle sales at 7850 Riverdale Drive NW (the "Subject Property"). The Applicant is purchasing four (4) of the five (5) business condominium units on the Subject Property with the intent of leasing out tenant space for individual motor vehicle sales dealers. The building and Subject Property are subdivided through a Common Interest Community (CIC) process that allows for individual ownership of units within the building. The proposal is identical to what the Applicant is currently operating on the adjacent property at 7820 Riverdale Drive, which was granted a Conditional Use Permit last year. However, this proposal does not include any detailing of vehicles on the Subject Property.

Staff attempted to notify all Property Owners within 350 feet of the Public Hearing. A Public Notice was also advertised in the Anoka Union-Herald, the City's official newspaper.

The Subject Property is zoned B-2 Highway Business District. The intent of this district is to provide for and limit the establishment of motor vehicle oriented or dependent businesses and convenience-type, high intensity commercial and service activities characteristically located along major traffic carriers. The B-2 Highway Business District allows motor vehicle, implement and recreation equipment sales and services as a conditional use.

The Applicant is proposing to use the existing multi-tenant office building, Riverview Suites, for the proposed motor vehicles sales (individual offices). The applicant is purchasing four (4) of the five (5) business condo units on the Subject Property. These units will be leased out to individual motor vehicles sales dealers. The Applicant is proposing seven (7) dealer offices initially (within Suite 1), each consisting of approximately 110 square feet. The Applicant is proposing to improve Suite 1 first. A floor plan has been provided that indicates the location for the first seven (7) offices and includes an exhibit for an additional sixteen (16) offices once additional parking is available.

The site includes forty-one (41) parking stalls located to the south and east of the multi-tenant building. The existing building has one (1) condo unit occupied and per association by-laws, that existing business (Chiropractor) has access to eight (8) parking stalls. Therefore, the available parking for the proposed use is limited to thirty-three (33) stalls. The Applicant has stated that the dealers are generally on site only a few times per week and thus, the Applicant is proposing to provide one (1) space per tenant, one (1) space per customer and three (3) spaces for vehicle display per tenant. However, based on available parking, two (2) of the initial seven (7) motor vehicle sales dealers will need to be limited to a maximum of two (2) vehicle display spaces. Staff would suggest a condition that the spaces for vehicle display and motor vehicle sales tenant spaces be designated furthest from the main entry, which is currently used by the existing chiropractor use.

The Applicant owns the adjacent property at 7820 Riverdale Drive NW and is operating a similar facility there. The Applicant desires to expand this use on the Subject Property and ultimately wants to expand the surface parking on the adjacent lot (7820 Riverdale Drive NW) to accommodate future tenants. At this time, however, the green space between the two (2) buildings is where the septic system and the alternate location for the septic system are located. This expansion of parking, as shown on the future exhibit, cannot occur until such time that 7820 Riverdale Drive NW connects to sanitary sewer, which would be available should the Riverdale Drive extension project be completed. While the Applicant has provided a conceptual exhibit showing future parking, specific plans and details are not available at this time for a full analysis and review.  Staff has drafted this Permit such that the expansion of additional motor vehicle dealer offices is contingent upon availability of additional parking stalls, with each additional motor vehicle dealer office requiring access to a minimum of five (5) parking stalls. However, expanding the surface parking for additional display of motor vehicles for sale on the property at 7820 Riverdale Dr would represent an expansion of a conditional use and thus, will require an amendment to that Conditional Use Permit prior to any expansion work commencing.

As parking is limited on the Subject Property, the Conditional Use Permit specifies that no more than seven (7) offices may be operated and that at no time shall there be more than nineteen (19) vehicles displayed on the Subject Property until such time that additional parking is available.  Additional motor vehicle dealers offices may be established once additional off-street parking becomes available as long as each additional office has access to at least five (5) dedicated parking stalls.

When the Subject Property was initially improved (2003), extra plantings were required within a 'bufferyard' area because the site abuts a residential property to the south. It appears that all of the required plantings at that time have survived and thus, no additional plantings are required by City Code.

The Planning Commission conducted a Public Hearing on March 6, 2014 and there were no written or verbal comments received.

Alternatives/Options

Option #1: Adopt Resolutions #14-03-046 and #14-03-047 granting approval of the Conditional Use Permit for Motor Vehicle Sales. The Applicant is already operating a very similar business model on the adjacent property to the east and there have been no known issues thus far. There are limited vehicles displayed on that site and it is anticipated to be similar with the use on the Subject Property, as most sales are conducted via the internet rather than a more traditional sales lot. Additionally, there are similar uses (motor vehicle sales, repair and/or rental) conducted on the properties to the north, east and west of the Subject Property, making the proposed use fairly compatible with the existing area. Staff supports this option.

Option #2: Adopt Amended Resolutions #14-03-046 and #14-03-047 granting approval of a modified Conditional Use Permit for Motor Vehicle Sales. Should the City Council desire to amend, add or delete any of the proposed conditions, they should be specifically incorporated into the motion for action this evening and Staff will update the documents accordingly.

Option #3: Deny Resolutions #14-03-046 and #14-03-047 which would deny the Conditional Use Permit for Motor Vehicle Sales. A very similar business model is operating on the adjacent property and to date, there have been no known issues or concerns with it. This stretch of Riverdale Drive primarily consists of motor vehicle sales uses, which is very compatible with the proposed use. Staff believes that the terms of the Conditional Use Permit will prevent any concern with nuisances and should the Applicant fail to comply with the terms, it could be grounds for revocation. Staff does not support this option.

All cost associated with processing the application are the responsibility of the Applicant.

The Planning Commission recommends adopting Resolutions #14-03-046 and #14-03-047 granting approval of the Conditional Use Permit request for motor vehicle sales at 7850 Riverdale Drive contingent upon compliance with the Staff Review File dated February 28, 2014, revised March 21, 2014.

Motion to adopt Resolution #14-03-046 adopting Findings of Fact #0925 related to a request for a Conditional Use Permit for motor vehicle sales at 7850 Riverdale Dr NW;

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Motion to adopt Resolution #14-03-047 approving a Conditional Use Permit for motor vehicle sales at 7850 Riverdale Dr NW contingent upon compliance with the City Staff Review Letter dated February 28, 2014 and revised on March 21, 2014.