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HomeMy WebLinkAbout1998-11-04 PACKET 08.B.F2EQUEST OF CITY COUNCiL ACTIO� GOUNCIL AGENDA MEETING IT [Vi # C7ATE 11/4/98 PREPARED BY: Community Devefopment ltim Lindquist ORIGINATING DEPARTPviEBVT S7AFF AUTHOR 4a4.*...e��t�t.a��.�...x.>e:.����=.:Q���k�.<�... � . i " ! Deny the proposed text amendment to Section 28-19 of the Zoning Ordinance relating to non- conforming structures. : � � • . � s � • ADVISORY COMfV1ESSION ACTION �. ►� - - � . •: � . � . � ` �' ■ ". ' �' ' • • � ' � ' � t' • l • �• � ..!' )• REVIEWED ❑ ❑ ❑ ❑ ❑ ❑ ❑ hl/A ACTUAL AMdUfVT APPROVED ❑ ❑ ❑ ❑ ❑ ❑ ❑ DENIED � ❑ ❑ ❑ ❑ ❑ ❑ � MEMO/LEITER: Memo from John McCool dated 10/28/98 ❑ RESOLUTION: ❑ ORDINAfVCE: ❑ ENGINEEE21NCz RECOMfv1ENDATION: ❑ LEGAI RECOMMENDATION: � OTFiER: 1) Letter from Kim �indquist to non-conforming �esidents dated 9l30i98 2) ExcerpY from Rvlirrutes of the July 27 and August 24, 1998, Planning Commission Meeting 3} Excerpt from Minutes of September 16, 1998, Gity Council t�eeting . A � � . . R { : # l � . ,. ��� � l Cify Adminisfratc�r Date @*����s*.��tr���d��A«a.�.����4�<..��.@¢�tr���.���� ccat��caL �,c�r`a� �ra��� ❑ a���av�� � oEr�i�� � c��r��� F:lGRC)UPSU�E.ANh11NG\9998\CETYCCfUN\76e98-21 Ftedmcnd cover.doc MEMORANDUM T0: Honorable Mayor and City Council Ryan Schroeder, City Administrator FROM: John McCooi, Senior Planner DATE: October 28, 1998 RE: Zoning Text Amendment — Redmond's Nonconforming Use Introduction Terry Redmond, 9501 Islay Avenue South, is requesting an amendment to Section 28- 19, Nonconforming Uses and Structures of the City's Zoning Ordinance. The purpose of the proposed text amendment is to aliow nonconforming residential dwellings in commercial zoning districts to be rebuilt in the event the dweiling is damaged 50 percent or more of its fair market value. The draft text amendment is as foilows: Chaqter 28 — Article III. General Provisions Section 28-19. Nonconforming Uses and Structures (d) Whenever a lawful nonconforming structure shall have been damaged by fire, fiood, explosion, earthquake, war, riot or act of God, it may be reconstructed and used as before; provided, that it is reconstructed within twelve months after such calamity, uniess the damage to the building or structure is fifty percent or more of its fair market value, as estimated by the building inspector and approved by the council; in which case, the reconstruction shaii be for use in accordance with the provisions of this Background On July 27 and August 24, 1998, the Planning Commission held a pubiic hearing concerning Terry Redmond's appiication to amend Section 28-19, Nonconforming Uses and Structures of the City Zoning Ordinance. At the second meeting, the Pianning Commission unanimously denied the text amendment based on the City Attomey's opinion and Planning staffs findings. City Council Members and Ryan Schroeder Zoning Text Amendment — Redmond October 28, 1998 Page 2 The City Council discussed this matter on September 16, 1998, and tabled the issue for further review. Staff was instructed to mail a notice to other residents owning nonconforming residential structures to advise them that the current zoning ordinance requirement may have an impact to their homeowners' insurance policy and coverage. This mailed notice was sent on September 30, 1998. A copy of this form letter was previously distributed to you. Discussion The City's Zoning Ordinance does not permit residentiai structures in commercial districts with the ultimate purpose of confining certain uses a�d structures to certain areas in the community. The general intent of the zoning ordinance is not to encourage the existence of nonconforming uses, but their gradual or eventual elimination. Ordinary maintenance may be allowed provided it does not entail structural alterations, additions, or enlargement of the nonconforming use or structure unless it conforms to zoning laws. The proposed text amendment had proposed language that simply stated it would not be applied to nonconforming residential structures located in commerciai zoning districts. The Pianning Commission evaluated several options, but concluded that the City's ability to bring nonconforming properties into compiiance wouid greatly be reduced. Concern was also expressed for the potential precedent that might be established if the proposed text amendment is adopted. The Councii discussed the proposed amendment and the pros and cons of the amendment. There was concern expressed that other property owners may not know the ramifications of tne ordinance for insurance. The Community Development Department mailed 17 notices to homeowners that have a situation similar to Mr. Redmond's. They were encouraged to discuss this matter with their insurance company to ensure appropriate insurance coverage is provided for their home. Nobody has contacted City staff conceming this notice. Recommendation Deny the proposed text amendment request based on the foilowing findings: Granting a te� amendment to Section 28-19 of the City's Zoning Ordinance for purposes of exempting lawful nonconforming residential structures wili decrease the probability that these nonconformities would cease. City Council Members and Ryan Schroeder Zoning Text Amendment — Redmond October 28, 1998 Page 3 2. The number of nonconforming residentiaf structures within commercial zoning districts is limited and the chance of a natural disaster occuRing is siim. 3. The current language in Section 28-19 does not preciude financing, refinancing, insurance coverage, or normal maintenance/upkeep of the property. 4. Section 29-19 does provide an exception (i.e. conditional use permit) to the prohibition of enlarging, remodeling, or rebuilding nonconforming uses of land or structures. 5. A precedent might be set for other types of nonconforming uses. September 30, 1998 Robert and Patricia Siegert 8797 West Point Dougias Road Cottage Grove, MN 55016 Dear Robert and Patricia Siegert: Rece�tly, the City Council discussed the issue of non-conforming properties in conjunction with a pianning request. The issue related to a single-family residence on a property that was zoned for a commerciai use. The property is co�sidered a Iegal non-conforming use, which means the property and use can continue in the existing manner. The issue about rebuilding property if damaged by a naturai disaster was also discussed, which is the reason for this letter. The ordinance specifically states the foilowing: Section 28-19(d) Whenever a lawful nonconforming structure shall have been damaged by fire, flood, expiosion, earthquake, war, riot, or act of God, it may be reconstructed and used as before; provided, that it is reconstructed within tweive (12) months after such calamity, unless the damage to the building or structure is fifty (50) percent or more of its fair market value, as estimated by the buiiding inspector and approved by the council; in which case, the reconstruction shali be for use in accordance with the provisions of this chapter. What the ordinance means is if your property wo�id be destroyed by more than 50 percent of its fair market value, the use of the property must be brought into compliance with the zoning. However, the ordinance does allow the property owner to apply for a conditional use permit from the City Council to reconstruct the home. A conditio�al use permit can only be applied for after the natural disaster has occurred and cannot be granted now to e�sure future use. The City is sending you this letter because the above provision may have an impact on your home- owner's insutance policy and coverage. Because you may not be familiar with the above provision of the zoning ordinance, you may not be as fuliy protected by your private homeowners insurance as you believe you are. We are suggesting that you contact your insurance company to discuss this issue with them. City pianning staff will be happy to speak with you or your agent regarding this issue. Feel free to contact John McCool, John Burbank, or Kim Lindquist at 458-2827. Sincerely, Kim Lindquist, AICP Community Development Qirector cc Mayor and City Council Ryan Schroeder, City Administratoe Pianning Commission Meeting Minutes Monday, July 27, 7998 Page 3 af t 1 EXCERPT FROM APPROVED MINUTES OF THE JULY 27, 1998, PLANNING COMMISSION MEETING 6.1 CASE TA98-21 Terry T. Redmond, 9501 Islay Avenue South, has applied for a text amendment to Section 28-19 of the Zoning Ordinance relating to non-conforming structures. Lindquist summarized the staff report and recommended denial as outlined in the staff report. Terry Redmond, 9501 Islay Avenue South, stated that he has had a problem trying to refinance his property. He has been working on this since last December. He finally got it refinanced; however, he didn't get the amount he wanted because the financing company held back due to the ordinance. He had to buy ordinance insurance in order to get the refi- nancing, which, ff the house is burned over 50 percent, covers the cost beyond that. He stated that he has lived on that property since 1955. At that time, it was not zoned com- merciai. It was rezoned commercial later. He stated his opinion that if an area is rezoned, the residents who lived there prior to the rezoning should be able to rebuild their homes. Auge opened the public hearing. No one spoke. The public heaiing was c%sed. Podoll asked lindquist if the house was damaged more than 50 percent, it could be rebuilt under a conditionai use permit. Lindquist answered that that is what the ordinance provides for now. Boyden asked what the percentage is based on. Lindquist answered that it is the market value. it was then asked if it was structure value or property value. Lindquist stated that it was structural value. Kleven stated that he would like to add to the ordinance language the caveat that as long as the residence has never been a commercial entity in fhe past. Fle sfated that he feels the City should give protection to those whose residence has never been used commercially. Auge asked if the current zoning district and the land use portion of the comprehensive pian update coincide. Lindquist stated that they do, but Redmond's property is a non- conforming residential use. She stated that the intent of the amendment would be that residential units would be able to be rebuilt even if more than 50 percent of a home's fair market value, as estimated by the building inspector, was damaged. Auge had concerns about how the amendment was crafted as it is not ciear. Lindquist stated that the language could be clarified. Podoll requested that the issue of rezoning residential areas to commercial and the effect upon current residents be part of the discussions on the comprehensive plan update. Planning Commission Meeting Minutes Monday, July 27, 1998 Page 4 of 11 Kleven asked if it could be done parcel by parcel on an as needed basis. Lindquist respanded that the city needs to treat ali like parcels similarly. Boyden asked about the status of the 17 properties that are non-conforming in their zoning districts and if they were original owners. Lindquist stated that she didn't believe the city couid base the amendment on property ownership, only on use. Auge stated that he is sympathetic to Redmond's issue however he's concemed about the legal justification for this exemption. Kleven stated that when talking about non-conforming residential properties, the market will usually take care of the property rather than by natural disaster. He also stated that long- time ownership shouid be considered. When the land becomes more valuabie as a commercial entity than as a residence, the market will take care of it. Auge stated that the market argument applies to a lot of ordinances. He also stated that as the City goes down that path that they understand what they are getting into. Kleverr asked if there were any other options that couid be explored. Podoii stated that the conditional use permit could be utilized if such a catastrophe happened and it couid be de- cided tnen if the resident could rebuiid or not. Kieven stated tnat he was uncomfortable with a resident suffering a damaged home and having to go before the City Council for ap- proval to rebuild and the Council possibly denying the appiication due to other commercial development in the area. Auge asked if there were other non-conforming uses of residential dweilings in a commercial zoning district. He wants to know what type of precedent wouid be set. Klsven stated that he believes that this issue is specific to residential uses only. Kieven requested that staff research other options for consideration. Lindquist will do so but explained that Planning staff has expiored numerous options with the City Attomey. it had been suggested that Redmond look for a mortgage company that is more flexible and everyone she spoke with had never heard of this problem, refinancing non-conforming residences, before. She further stated that the attorney's advice is to not change the ordinance. Sawyer asked if the other 17 residents understand the situation. Lindquist answered that they were not contacted. Kleven made a motion to table this item with input from legal counsel. Sawyer secanded. The motion passed unanimously. This item will be heard at the August 24 meeti�g with a report from the city attorney. Unapproved Excerpt from the Minutes of the August 24, 1998, Ptanning Commission M�eting Terry T. Redmond, 9501 Istay Avenue South, has applied for a text amendment to Section 28-19 of the Zoning Ordinance relating to non-conforming structures. Lindquist summarized the staff report and recommended de�ial of the application. She then gave an overview of the letter from the Assistant City Attomey dated August 18, 1998. Lindquist stated that the text amendment had been modified from that reviewed at the July meeting so that the wording is more clear. Auge opened the public hearing. No one spoke. The public hearing was c%sed, There was no discussion by the Planning Commission. Podo!! moved to deny the application as proposed. Rice seconded. The motion passed unanimously. Regular Meeting - September 16, 1998 Cottage Grove City Council Page 13 : � • •-� Award the Bid for Removal and Re�lacement of Hamlet Park Baseball Backstops to Gary's Fence Company MOTION BY HALE, SECONDED BY WOLCOTT, TO AWARD THE BID FOR THE REMOVAL AND REPLACEMENT OF HAMLET PARK BASEBALL BACKSTOPS TO GARY'S FENCE COMPANY IN THE BID AMOUNT OF $19,500. MOTION CARRIED. 5-0. Adoat a Resolution Awarding the Bid for Construction of Public Improvements for Pine Forest 4th Addition MOTION BY WOLCOTT, SECONOED BY HALE, TO ADOPT RESOLUTIDN NO. 98-177. AWARDING THE BID FOR CONSTRUCTION OF PUBLIC IMPROVEMENTS FOR PINE FOREST 4TH ADDITION. UNFINISHED AND NEW BUSINESS Deny the ProQOSed Text Amendment to Section 28-19 of the Zoninq Ordinance Relating to Non-Conforming Structures Fioyd Ott, 11865 Point Dnugias Road, stated that residential homesteads are in areas zoned industrial and commercial and these homeowners cannot get refinancing or insurance. Mr. Ott stated that property rights are sacred and suggested these zoned areas should be grandfathered in. Mr. Ott asked when the ordinance was passed. Community Development Director Kim Lindquist stated this is not rezoning, it is grandfathered in and explained the ordinance to Mr. Ott. Community Development Director Lindquist stated that the problem the residents are having is with the refinancing, as they cannot obtain the Conditionai Use Permit (°CUP") until the act has happened. Community Development Director Lindquist reported that Mr. Redmond has received refinancing without a change in the ordinance. Mr. Ott stated that the residents were there before the law was passed, and now the residents have to put up with the conditions of this ordinance. Mr. Ott questioned how government can devalue the property. Terry Redmond, 9501 Islay Avenue South, stated that he did not get everything he wanted in his refinancing because of this ordinance. Community Development Director �indquist stated that the ordinance allows over time for the City to bring the property uses into compliance. Community Development Director Lindquist expiained that Mr. Redmond's mortgage Regular Meeting - September 16, 1998 Cottage Grove Gity Councii Page 14 company would not refinance for the amount under the first bank and this was the first time this situation happened. Community Development Director Lindquist stated that Staff is assuming other people are getting refinancing. Mr. Ott asked for the reason for this ordinance. Community Development Director Lindquist responded that non-conforming uses over time will be brought into conformance. Community Development Director Lindquist stated that this section of the ordinance has been in the ordinance since it was adopted. Council Member Shiely stated that eventually one area wili all be commercial, all wiii be industrial, and all will be residential. Council Member Shiely stated that Mr. Redmond's area began as a residential area. Council Member Hale stated that there was a public meeting and residents supported the zoning. Council Member Hale expiained that for the most part the Pianning Commission respects the residents' requests, and this property was zoned commerciai because residents supported it. Councii Member Hale stated that a variance to build a residentiai home in a commerciai area is not uncommon. Mayor Denzer stated that there are regulations of what way you can zone, and you can zone to a higher value and not to a lower value. Council Member Kohis stated a concern that the City assumes since property is zoned commercial it will have a much greater value. Council Member Kohis stated that she does not consider some areas marked commercial to have much hope of becoming commerciai. Community Development Director Lindquist stated that the Council needs to discuss these concerns during the comprehensive plan review. Council Member Kohls asked if how long the process is to get a CUP. Community Development Director �indquist stated that a typical process is 45 days, however if there were a major natural disaster, it could be expedited. Terry Redmond, 9501 Islay Avenue South, stated that he is aware of one other person attempting to obtain financing, but has been denied because of the CUP. Mr. Redmond reported to the Council that special insurance needs to be purchased as well, stating that the homeowner wil! get reimbursed 50 percent if he does not buy the speciai insurance. Mr. Redmond stated that he thinks it is unfair to pay for extra insurance. Mr. Redmond stated that he had to go to five mortgage companies before he got a loan. Councii Member Hale stated that he was involved with the street zonings back in the 1970s and at that time the testimony of the residents was thet they wanted Regular Meeting - September 16, 1998 Cottage Grove City Council Page 15 the commercial zoning. Council Member Hale stated that it is the option of the resident to rebuild. Councii Member Kohls stated that she spoke with several of the residents and they were not aware of the insurance condition. Community Development Director Lindquist stated that most people know that tney are zoned commercial but was not sure if they were aware of the insurance issue. Community Development Director Lindquist stated that Staff could send a letter informing the residents that they should contact their insurance carrier. Council Member Kohis asked Community Development Director Lindquist to send a letter to the residents. MOTION BY HALE, SECONDED BY KOHLS, TO TABLE THE ISSUE OF THE PROPOSED TEXT AMENDMENT TO SECTION 28-19 OF THE ZONING ORDINANCE RELATING TO NON-CONFORMING STRUCTURES FOR FURTHER REVIEW. MOTION CARRIED. 5-0. Adopt a Resolution Grantin4 a Variance from Landscapin�Reauirements of and Automobiles at 61 Marine & Sports, 11730 Point Douqlas Road MOTION BY SHIELY, SECONDED BY HALE, TO ADOPT RESOLUTtON NO. 98-178. GRANTING A VARIANCE FROM THE LANDSCAPE REQUIREMENTS OF CHAPTER 28 OF THE ZONING ORDINANCE AND APPROVING THE CONDITIONAL USE PERMIT TO EXPAND THE EXISTING NON- CONFORMWG USE FOR SALE OF RECREATIONAL VEHICLES AND AUTOMOBILES AT 61 MARINE & SPORTS, 11730 POtNT DOUGLAS ROAD. Council Member Hale stated that there is not adequate turning lanes on Highway 61 to serve the area. He asked that a letter be sent to the Highway Department on this issue. Mayor Denzeragreed and instructed Staff to direct a letter to Minnesota Department of Transportation to address the turning lanes. Communi'ry Development Director Lindquist stated that there is City right-of-way in front of 61 Marine & Sports. Councii discussed the street and the entrance to 61 Marine & Sports. Lindquist stated that the City has right-of-way the fuil length of the lot, so the frontage road could be extended. Mr. AI Stewart of 61 Marine & Sports informed the Council that he is maintaining the property for the City. He stated that the resolution calls for a yearly renewal fee, and that he does not feel that is right. He suggested a five year inspection, and that he continue to maintain the property without exchanging doliars.