HomeMy WebLinkAbout13.C.1. Appeal of the Board of Adjustment and Appeals Determination by Appliance Smart
13.C.l.
CITY OF SHAKOPEE
Mt}1Jlorandum
CASE NO.: 07-044
TO: Mayor and City Council
Mark McNeill, City Administrator
FROM: Julie Klima, Planner II
RE: Appeal of the Board of Adjustment and Appeals Determination by Appliance
Smart
DATE: August 8, 2006
INTRODUCTION
Appliance Smart has filed an appeal of the Board of Adjustment and Appeals (BOAA) determination
upholding staff s interpretation that the use of an Appliance Smart is not permitted within the Heavy
fudustrial (I-2) zone.
Appliance Smart had inquired with City staff regarding the potential for locating their business at 4241 12th
Avenue East. From the description of the business provided to City staff, it was clear that the primary nature
of the business is the retail sales of appliances to the general consumer, very similar to the retail activities of a
furniture store. Staff concluded that such a retail use, even though much of the facility is dedicated to the
storage of the items offered at retail is not permissible under the 1-2 provision of the City Code and informed
the applicant of such. The applicant submitted an application for Conditional Use Permit (CUP) to allow
retail sales in the 1-2 zone. Staff returned the application to the applicant informing them that. if they
disagreed with staffs interpretation, the proper process would be to file an appeal with the Board of
Adjustment and Appeals of the staff determination.
Appliance Smart followed up by filing an appeal of staff s determination to the Board of Adjustment and
Appeals (BOAA). Please see the attached memorandum to the BOAA. On July 19, the BOAA heard the
appeal and, by a 6-1 vote, voted to uphold staff s determination that retail sales is not an allowable use within
the Heavy fudustrial (I-2) zone.
Appliance Smart has now filed an appeal of the BOAA decision. Please find attached correspondence and
proposed findings provided by the applicant (Exhibit CC-A).
ALTERNATIVES
1. Offer and approve a motion upholding the determination of the BOAA.
2. Offer and approve a motion granting the appeal of the applicant.
3. Table a decision and request additional information from staff and/or the applicant.
ACTION REQUESTED
Offer a motion to consistent with the wishes of the City Council and move its adoption.
h:\cc\2007\08-08\appeal appliancesmart 07044,doc
EXHIBrr C.C-A1
Law Offices Stacy A. Wooqs
1400 AT&T Tower Attorney at Law
901 Marquette Avenue ' . (612) 365-1409
Minneapolis, MN 55402-2859 saw@!TIcrnlaw.com
Telephone: (612) 305-1400
Facsimile: (612) 305-1414 ~~f11:
www.mcrnlaw.com
July 27,2007
VIA MAIL AND FACSIMILE
City of Shakopee
Attn: Tammy'
129 Holmes Street South
Shakopee,MN 55379
(952) 233-3801
Re: Appliance Smart Appeal of Decision of Board of Adjustment and Appeals for
City of Shakopee
Case Log No. 07035
Appliance. Smart ("Applicant")
Our File No. 81732-104
Our Client: Appliance Recycling Centers of America, Inc. (dba Appliance
Smart)
Dear Tammy:
Enclosed herein is an application for the appeal to Shakopee City Counsel ofthe decision
by the Board of Adjustment and Appeals. Also enclosed is an application fee of$225.00 and
supporting documents. Please accept this appeal application along with the prior submittals for
the conditional use permit and the appeal of the city staff decision to the Board of Adjustments
and Appeals,
The proposed use qualifies as a conditional use as set forth in Section 11.46 Subd. 3 B as
retail sales.. . stored on site. This storage on site encompasses the entire property unlike
traditional retail that displays only certain products. In the alternative, Section 11.46 Subd. 3 Q
provides that certain other uses similar to those permitted may be allowed upon the issuance of a
Conditional Use Permit.
When viewing the entire application and unique nature of Appliance Smart's business
model along with its specific compatibility with the 1-2 district, we are confident that the City
Counsel will determine that review as Conditional Use Permit is warranted in this isolated case.
MSBA Board Certified Real Property Specialist
MKmLCRoUNSE'iMffiREnA, EXI1IBITCC.:4z
City of Shako pee
July 27,2007
Page 2
Thank you for your consideration in this matter.
Sincerely,
~L, CROC?~::lC
Enclosures
cc: Michael Thompson
Michael Cronin
SAW /djs!855025v1
~HIB'1: CG~
Findings Supporting a Determination Allowing Consideration of Retail Sales as Proposed by
Appliance Smart at 4241 12th Avenue East in the 1-2 District as a Conditional Use
1, Retail Sales of products stored on the site is a specified conditional use in the 1-2 District (Section 11.46
Subd.3 B),
2. The proposed site is located in an industrial area and in a recently constructed industrial building remote
from residential uses and where urban services and adequate transportation facilities exist.
. 3, The proposed site is adjacent to a large furniture store called Ashley Furniture Home Store located at
4250 12th Avenue East, Shakopee, The Ashley site was previously zoned as 1-2 but was changed to B-1
Highway Business. While the two businesses are differentiated, as explained in these findings, the priority
of the two properties serves to strengthen Appliance Smart's request for conditional use,
4, The proposed site does not front on or have immediate access to an arterial street.
5, All sales will occur within the principal structure,
6. No exterior building modifications are required or proposed.
7. The use will have no outside storage or display or accessory structures.
8. A sign plan in conformance with the City's ordinance is described in the Appliance Smart narrative and a
sign plan implementing and not exceeding this discussion will be submitted.
9. The proposed Appliance Smart use is distinctly different from traditional retail uses by at least these
conditions:
a. The Appliance Smart business model as described in the narrative and photos of comparable
stores does not differentiate between retail and storage spaces by doorways, demising walls,
finish, HV AC, lighting, or inventory.
b, The Appliance Smart "Take With" sales model is different from the traditional "Order off
Display" appliance sales model. The dominant appliance sales model is taking an order for an
appliance from a finished retail floor space with a representative selection of individual samples of
the appliances offered, and then fulfilling the order by delivery to the customer from an off-site
warehouse stocked with appliances. Our model is direct sales to the customer of one of the 2000 to
2500 appliances on the Appliance Smart floor.
c. The Appliance Smart model is implemented with no changes to the exterior and no pennanent
changes to the interior of a warehouse space, The volume of tractor trailer traffic generated by
deliveries directly from the manufacturer to the site are best accommodated in an industrial rather
than a retail district, and the lower sales volume and number of transactions per day characteristic
of our model has been proven compatible within industrial districts where we are located in other
cities. The number ofloading docks existing at the property is vital to Appliance Smart's
operation,
10, These conditions also make the application of the traditional quantitative predictors of compatibility
not practically efficient or applicable, The outcome-based standards of the City's Conditional Use Permit
findings and process will competently and effectively address any impacts or impairments that may result
from these conditions at this location.
11, Due to the warehouse nature of the Appliance Smart model and the stark contrast from traditional
furniture retail stores, this warrants a fmding of "other uses similar to those permitted by the subdivision"
as set forth in Section 11.46 Subd. 3 Q,
e:xal'B IT CG- A 4
12. Maintenance of these distinctive and distinguishing conditions at this site will be assured by the
enforcement opportunity provided by the Conditional Use Permit process,
13, The Owner is supportive of the Conditional Use Permit and is prepared to present its argumeI.1t before
City Counsel.
Therefore,
The application of Appliance Smart should be accepted for consideration through the Conditional Use
Permit process, granting the appeal of the applicant.
SA W!djs!856401 vI
#1
CITY OF SHAKOPEE
Memorandum
CASE NO.: 07-035
TO: Shakopee Board of Adjustment and Appeals
FROM: Julie Klima, Planner IT
SUBJECT: Appeal of Staff Determination - Appliance Smart
MEETING DATE: July 19, 2007
REVIEW PERIOD: June 14 - October 12,2007
SITE INFORMATION:
Applicant: Appliance Smart
Property Owner: Shakopee Industrial Holdings, LLC
Location: 424112th Avenue East
Existing Zoning: Heavy Industrial (1-2)
Adjacent Zoning: North: Heavy Industrial (1-2)
South: Highway Business (B-1)
West: Highway Business (B-1)
East: Heavy Industrial (1-2)
Comp.Plan: Business Park
Acreage: 9.36 Acres
MUSA: The site is within the MUSA boundary.
DISCUSSION
Appliance Smart has submitted an application of appeal of staff determination. Please see Exhibits A and
B for location and the applicant's narrative.
Appliance Smart had inquired with City staff regarding the potential for locating their business at 4241
12th Avenue East. From the description of the business provided to City staff, it was clear that the
primary nature of the business is the retail sales of appliances to the general consumer, very similar to the
retail activities of a furniture store. Staff concluded that such a retail use, even though much of the
facility is dedicated to the storage of the items offered at retail is not pennissible under the 1-2 provision
of the City Code and infomied the applicant of such. The applicant submitted an application for
Conditional Use Permit (CUP) to allow retail sales in the 1-2 zone. Staff returned the application to the
applicant informing them that if they disagreed with staffs interpretation, the proper process would be to
file an appeal with the Board of Adjustment and Appeals ofthe staff determination.
The subject property is zoned for Heavy Industrial (I-2) uses. Section 11.46 of the City Code outlines the
uses that are permitted and conditional within the 1-2 zone. The list of permitted uses of the 1-2 zone does
not include retail sales. The list of conditional uses in the 1-2 zone does allow for "retail sales of products
manufactured, fabricated, assembled or stored on site".
Staffs interpretation that retail sales are not a permissible use in the 1-2 zone is based on several factors:
1. The permitted uses of the 1-2 zone does not include retail sales.
2. The stated purpose of the Heavy Industry (1-2) zone is to provide an area for industrial uses in
locations remote from residential uses and in which urban services and adequate transportation
exist. The spirit and intent of this purpose statement is not at all similar to the purpose statement
of the Highway. Business (B 1) zone which clearly allows retail sales as a permitted use. The
purpose statement of the B 1 zone reads "the purpose of the Highway Business zone is to provide
an area for business uses fronting on or with immediate access to arterial and collector streets".
3. The conditional uses for the 1-2 zone include "retail sales of products manufactured, fabricated,
assembled, or stored on site". Section 11.88 of the City Code outlines the specific standards for
conditional uses in the fudustrial zones. Section 11.88, Subd. 2.Y lists 5 conditions that shall be
applied to retail sales of products manufactured, fabricated, assembled, or stored on site. One of
these conditions is "shall limit the area devoted to display and sale of the products to no more
than 15 % of the principal structure or 2,000 square feet within the principal structure, . whichever
is less". The use as outlined by the applicant exceeds this requirement. Moreover, were the City
to adopt the interpretation preferred by counsel for the applicant, it would be at best difficult to
draw a distinction between this retail use and any other retail use where the items sold are stored
on-site.
Based on these considerations, it is staffs interpretation that the proposed retail use in the 1-2 zone is in
direct conflict with the standards and spirit and intent set forth by City Code.
ALTERNATIVES
1. Offer and approve a motion upholding the determination of staff.
2. Offer and approve a motion granting the appeal of the applicant.
3. Table a decision and request additional information from staff and/or the applicant.
ACTION REQUESTED
Offer a motion to consistent with the wishes of the Board of Adjustment and Appeals, and move its
adoption.
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("'-'C"'-'->...... ~X+rl IS IT 8
Law Offices Stacy A. Woods
1400 AT&T Tower Attorney at L~w
901 Marquette Avenue 612-305-1409
Minneapolis, MN 55402-2859 saw@mcmlaw.com
Telephone: (612) 305-1400
Facsimile: (612) 305-1414 ~RC
www.mcmlaw.com
June 13, 2007
Board of Adjustment and Appeals
City of Shakopee
129 Holmes Street South
Shakopee,MN 55379-1351
Re: Appeal of Decision of City Staff of Application for Conditional Use Permit
By Appliance Recycling Centers of America, Inc. d/b/a ApplianceSmart
Property Located at 424112th Avenue East, Shakopee
Dear Board of Adjustment and Appeals:
This letter and the enclosures constitute an appeal of the decision of Shako pee City
Staffs determination that ApplianceSmart's application for a conditional use permit was not
allowed as a conditional use in the Heavy Industrial (1-2) Zone. Enclosed herein is the
completed appeal application and paid fee, along with the original application for conditional use
permit for the property located at 424112th Avenue East, Shakopee (the "Property").
The type of appeal requested here is an appeal of the City Staffs determination that this
use is not allowed as a conditional use in the Heavy Industrial (1-2) Zone. There was no
additional explanation provided by City Staff as to the determination. ApplianceSmart's
intended use of the Property is a warehouse with retail sales. The use as a warehouse with retail
sales specifically fits under the definition of "conditional use" set forth in Shakopee's City
Ordinance Section 11.46, subd. 3.B:
Retail sales of products manufactured, fabricated, assembled or stored on site.
(emphasis added)
This defInition on its face includes the proposed use by ApplianceSmart. Aclear reading
cannot reasonably be interpreted to exclude the use of ApplianceSmart as a conditional use. If
the definition stated".. . and stored" we would agree that its use would not constitute a stated
"conditional use," but the crucial word here is "or". This use as retail sales of products stored on
site meets the strict terms of the zoning criteria for a conditional use permit. Further, the nature
of ApplianceSmart' s operation of an un-air-conditioned warehouse, housing appliances in bulk,
with loading docks, with limited customer traffic, makes it more suitable for Heavy Industry
Zone than the Business Park Zone (BP). The photos and information presented as a part of the
application demonstrate the suitability of ApplianceSmart's operation in Heavy Industry in other,
comparable Minnesota cities. ApplianceSmart is a warehouse rather than a typical, finished,
retail outlet. As the strict terms of the ordinance are met here and the elements for conditional
MSBA Board Certified Real Property Specialist
('"~)
MAClV\lLClDUNSBMmREl;
Board of Adjustment and Appeals
June 13, 2007
Page 2
use permit have been met, ApplianceSmart is entitled to have its application reviewed and not
dismissed outright.
A conditional use permit is a zoning device designed to meet problems that arise when
certain uses, although generally compatible with basic use classification of a particular zone,
should not be permitted to be located as a matter of right in a particular area ofthat zone because
of hazards inherent in use itself or because of special problems which its proposed location may
present. Amoco.oil Company v. City of Minneapolis, 395 N.W.2d 115 (Minn. App. 1986).
ApplianceSmart should have the opportunity to present evidence that its uses are not inherently
hazardous and do not present special problems for the Property or the Heavy Industry Zone.
Denial of a special use permit is arbitrary if it is established that all standards specified by
the ordinance as a condition of granting the permit have been met. Yang v. County of Carver,
.660 N.W.2d 828 (Minn. App. 2003); In Scott County Lumber Coma ny, Inc. v. City of Shako pee,
417 N.W.2d 721 (Minn. App. 1988)(review denied), the City's denial of a conditional use permit
was held to be arbitrary because it was not supported by legally sufficient reasons. Weare
unaware of any standards that ApplianceSmart has failed to meet. The City has not provided
ApplianceSmart with any performance standards other than the language set forth in the City
Code defining what constitutes a "conditional use" which, by its definition, has been met here.
ApplianceSmart cannot meet performance standards unless it is aware of what those performance
standards are.
The City has not cited legally sufficient reasons to deny the conditional use permit
without any review.
If the City's planning staff has reservations or concerns about the compatibility or
desirability of our retail sale of products stored on site at this location, that determination is the
purpose of the conditional use permit process -
155. "Use Conditional" - A use which is generally permitted within the zone, but
which requires special review and limitations because if not carefully located or
designed may have a detrimental impact on neighboring properties or the City.
and shQuld not be the basis of their arbitrary decision to reject a good faith application to initiate
that process.
The conditional use permit process is the proper process designed to test the staff's
concerns and for a third party, the Planning Commission and City Council, after hearing and
considering the comments ofthe staff, the applicant and any interested members of the public to
make this decision. If the proposed conditional use does not fall under the delineated conditional
uses under the City Code, it would be understandable that the City Staff would reject the
IvfAClWLCRoUNSBMmREb
Board of Adjustment and Appeals
June 13, 2007
Page 3
application. Here, where the proposed conditional use falls under the definition of "conditional
use", the proper action by the staff would be to allow this process of consideration of
ApplianceSmart's application specifically provided in the Zoning Code to begin. The City
Staffs role in this case should not have been to allow their vision of the ideal tenant for the
Property serve as the basis for their arbitrary and premature decision to prevent the conditional
use review process as provided by the Code from proceeding. By their action they have forced
ApplianceSmart into another process, the appeal process which has prevented the requisite
process of review of ApplianceSmart's application by the City to begin.
If it was the staffs purpose to advise my client they had great concerns about my client's
application at this Property and would oppose the approval of the conditional use permit my
client thanks them for their willingness to provide frank advice on their application. If they also
were advising my client that its application was doomed and they could save their money and
time and the time of the staffby not making an application, again my client thanks them for their
advice. Advice like this from the City's staff is typically a powerful disincentive to proceed with
an application.
ApplianceSmart initially informally provided the staffthe information they requested
about ApplianceSmart's proposed use. ApplianceSmart reviewed the e-mail containing the
City's response, and ApplianceSmart's planner and attorney talked with Mr. Noble about the
reasons for opposing ApplianceSmart's application. The "precedent" raised by the City involved
a very different use in a very different setting with the potential and experience of opposition
from its neighbors. ApplianceSmart determined there were very different facts involved in the
two cases and this "precedent" was inapplicable here. ApplianceSmart determined the staffs
advice should be tested, and the CUP process was the best and proper process designed for that
test. ApplianceSmart initiated its application for a CUP for ApplianceSmart's use at the Property
to allow that process to determine ApplianceSmart' s compatibility, realizing they could face the
opposition of the staff during this process.
We respectfully submit this appeal given the facts in this case. The staff, by forcing
ApplianceSmart to appeal their arbitrary and premature decision rejecting ApplianceSmart's
application, has erred and directed ApplianceSmart into an unnecessary and inappropriate
process for the City to consider ApplianceSmart's application. ApplianceSmart is seeking the
zoning authority's determination based upon a rational basis for the decision.
MACKL\lLCRoUNSEMmREb
Board of Adjustment and Appeals
June 13, 2007
Page 4
Therefore the City should accept the application for a Conditional Use and allow that
process of consideration and approval or denial by that process to begin. Thank you for your
consideration.
Sincerely,
MACKALL, CROUNSE & MOORE, PLC
By (}tJ~
Stacy A. Woo s
Enclosure
cc: Michael Thompson
SA W!djs!845287vl
--
13.C.I.
Attachment to the Application of Appliance Smart for a Conditional Use Permit 01\1
Allowing its Occupancy of 424112111 Avenue East Tf\ I?Je.,
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Attachment to the Application of Appliance Smart for a Conditional Use Permit
Allowing its Occupancy of 4241 Ith A venue East
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Attachment to the Application of Appliance Smart for a Conditional Use Permit
Allowing its Occupancy of 4241121h A venue East
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Attachment to the Application of Appliance Smart for a Conditional Use Permit
Allowing its Occupancy of 424112lh Avenue East
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Attachment to the Application of' Appliance Smart for a Conditional Use Permit
Allowing its Occupancy of 4241 12"' A venue East
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Photo Ten Climate control at the Champlin store, note the industrial,
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5
Attachment to the Application of' Appliance Smart for a Conditional Use Permit
Allowing its Occupancy of 4241 121h A venue East
Photos
Photo Eleven Customer loading at the Champlin store
6