Consider Request for an Interim Use Permit to Utilize an Alternative Surface for Expansion of Outdoor Sales/Display Area at 7575 Highway 10 NW & the Adjacent Vacant Parcel to the East; Case of M & G Trailer Sales and Service

M & G Trailer Sales and Service desires to expand their outdoor sales/display area to accommodate a larger inventory of trailers. Presently, they are at maximum capacity for display within their existing parking lot at 7575 Highway 10 NW and would like to expand to the east onto a vacant parcel owned by the City (collectively referred to as the "Subject Property"). Thus, they have applied for an Interim Use Permit (IUP) to expand their display area to the east utilizing Class V gravel rather than asphalt or concrete. Use of an alternative surfacing material is permissible with the issuance of an Interim Use Permit.

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

The Subject Property is located in the H-1 Highway 10 Business District. In September of 2013, an amendment to the commercial/industrial off-street parking standards related to the Highway 10 Official Map Area (as well as a few other defined areas related to future transportation improvements) became effective, which allowed for the use of alternative surfaces under certain conditions. Alternative surfaces can only be used to expand existing parking lots and can only be for the display of merchandise; primary parking for customers and employees must still comply with the standards of the underlying zoning district. The alternative surfacing must maintain a minimum setback of five (5) feet from any stormwater pond and at least twenty (20) feet from public road rights of way (standard greenspace requirement), and finally, the alternative surface must be screened from view at ground level from public rights of way and adjacent properties.

The proposed expansion of surfacing will extend from the eastern edge of the applicant's parking lot east onto the adjacent, vacant property, which is owned by the City. The surfacing will consist of two (2) inches of Class V gravel material that will cover approximately 40,000 square feet. The applicant is proposing to maintain a twenty (20) foot greenspace area along Highway 10 right of way, matching the existing greenspace provided on the applicant's property, and also will retain twenty (20) feet of greenspace along the northern edge (adjacent to the BNSF right of way) as well. This is to ensure that the disturbed area remains below one (1) acre, thus avoiding the need to obtain a Lower Rum River Water Management Organization permit. The site drawing indicates that evergreen shrubs will be installed within the greenspace area adjacent to the public road right of way for screening purposes.

The applicant has submitted existing and proposed elevation data needed to determine stormwater impacts.  The two (2) greenspace corridors along the public road right of way and the BNSF right of way should provide the necessary volume reduction and attenuation, thus additional stormwater ponding is not necessary. 

The majority of the expansion area will be on a parcel owned by the City. Therefore, the applicant is also working with City Staff on a lease agreement for use of this land. A lease agreement has been drafted and is on this evening's agenda for City Council consideration as well.

The request has been forwarded to MnDOT for review/comments as the Subject Property is adjacent to Highway 10. As of the writing of this case, Staff has not received a response. However, it should be noted that no new access from Highway 10 is proposed. Access to the expanded sales/display area will be internally through M & G Trailer Sales and Service's existing parking/display area. In fact, for security purposes, the applicant will be installing/extending a chain link fence around the leased area that would prohibit access to the leased area except from through their existing parking lot. The site is impacted by the Highway 10 Access Planning Study initiated by Mn/DOT, although the exact timing of any implementation of this study has yet to be defined. The current information available as part of this study identifies this site as a full acquisition and removal of use.

The Planning Commission held a Public Hearing at their April 3, 2014 regular meeting and there were no written or verbal comments received.  Much of the discussion by the Planning Commission focused on the duration of the IUP.  It had originally been drafted for a term of five (5) years, which is the maximum duration stated in City Code.  However, the City Council does have the authority to approve a duration greater than five (5) years as long as the date or event that will terminate the use can be identified with certainty.  Furthermore, State Statute, as it relates to interim uses, does not specify a maximum duration.  Thus, the Planning Commission recommended that the duration of the IUP be linked to the acquisition of the Subject Property for improvements to Highway 10 (outlined in MnDOT's Access Management Plan and current Access Planning Study) or five (5) years after the date that MnDOT determines the Subject Property will not be impacted by these future improvements.  The Planning Commission believes this is appropriate as it eliminates the need for the applicant to reapply and expend additional funds in the future to request authorization to continue with the alternative surface.

Alternatives/Options

Alternative #1: Adopt Resolutions #14-04-067 and #14-04-068 related to a request to utilize an alternative surface for expansion of outdoor sales/display area. In the fall of 2013, the City amended the commercial off-street parking regulations to provide an exemption to the bituminous/concrete surface requirement in defined areas subject to future transportation improvements, including those parcels in the H-1 Highway 10 Business District. The proposed expansion does comply with the standards provided in Ordinance #13-16.  The duration of the IUP, as presented, is tied to the date of acquisition of the Subject Property for improvements to Highway 10 or five (5) years after the date that MnDOT determines the Subject Property will not be impacted by improvements to Highway 10, which, as outlined in City Code, the City Council does have the authority to approve.  Staff supports this option.

Alternative #2: Adopt amended Resolutions #14-04-067 and #14-04-068 related to a request to utilize an alternative surface for expansion of outdoor sales/display area. Should the City Council be concerned with the duration of the IUP, it would be appropriate to pull this case from the Consent Agenda and discuss as part of the Regular Agenda.  If this is the case, the IUP could be amended as part of the motion to identify a shorter duration, such as five (5) years, which has been typical in past practice. 

Alternative #3: Do not adopt (deny) Resolutions #14-04-067 and #14-04-068 related to a request to utilize an alternative surface for expansion of outdoor sales/display area. It appears that the proposed improvements comply with the standards outlined in Ordinance #13-16 and thus, Staff does not support this option.
 

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

The Planning Commission recommends approving Resolutions #14-04-067 and #14-04-068 to allow the use of an alternative surfacing material (Class V gravel) until such time that the Subject Property is acquired for improvements to Highway 10 or to five (5) years after the date that MnDOT determines the Subject Property will not be impacted by improvements to Highway 10, contingent upon the applicant entering into a Lease Agreement for use of a portion of City-owned land.

Motion to adopt Resolutions #14-04-067 and #14-04-068 allowing the use of an alternative surfacing material to expand an outdoor sales/display area, which expiration would be tied to an event related to the Highway 10 conversion as opposed to a maximum of five (5) years, contingent upon the applicant entering into a Lease Agreement with the City for use of a portion of City-owned property.