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HomeMy WebLinkAbout6.A. Zoning Text Amendment to Section 11.36, Highway Business (B-1) Zone Regarding Vehicle Sales, Service and Repair Public Hearings 6. A. SHAKOPEE TO: Mayor and City Council FROM: Kyle Sobota, Senior Planner DATE: 09/01/2015 SUBJECT: Zoning Text Amendment to Section 11.36, Highway Business (B-1) Zone regarding Vehicle Sales, Service, and Repair Action Sought The Council is asked to conduct a public hearing regarding proposed Ordinance No. 912, an ordinance amending City Code Section 11.36, Highway Business (B-1) regarding vehicle sales, service, and repair, and then take the desired action. Background In 2013 the City Council commissioned a study on land use along the 101 Corridor. One of the recurring comments received from real estate brokers, investors, the Chamber President, and the planning consultant was that, in their professional opinions, the quantity and concentration of used vehicle sales operations is limiting investment in the Highway 101 corridor. A map is attached showing the location of existing dealers in the B-1, Highway Business zone. In December of 2013 the Planning Commission and City Council reviewed a proposed text amendment to limit used vehicle sales in the Highway Business zone to those that are part of new vehicle sales operation. The Planning Commission recommended approval of the request with the stipulation that the business only need be owned by a dealer based in the City. At the January 21, 2014 City Council meeting, the City Council reviewed and tabled the request. The Council directed staff to notify owners of the existing vehicle sales operations and await further comments on the Highway 101 study. At this time there are 11 vehicle sales operations in the First Avenue Corridor and 16 in the B-1 zone. Vehicle sales, with conditions, are also permitted as a conditional use in the I-1, Light Industry zone. Discussion Staff recently published a public hearing notice and notified both the property owners and operators of vehicle sales operations in the Highway Business Zone about the proposed amendment. The attached question and answer page was provided as part of the notice. At the time of writing this report, staff has heard from one of the operators and that operator is comfortable with changes to the regulations, provided they will be able to continue to operate their business as they do today. The operator also mentioned that he felt there were too many used vehicle sales operations in Shakopee. Planning staff frequently respond to inquiries from realtors and prospective dealers about opening additional used car lots in Shakopee, sometimes receiving multiple inquiries on the same day. At this time, any property zoned B-1, Highway Business is eligible for vehicle sales operations with a conditional use permit. Suggested conditions in City Code that the Board of Adjustment and Appeals may consider when reviewing vehicle sales operations are: 1) shall not store any unlicensed and inoperable vehicles for more than 7 days, unless in an appropriately designed and screened storage area. 2) shall conduct all repair, assembly, disassembly, or maintenance of vehicles within a building, except for minor maintenance such as tire inflation, adding oil, or wiper replacement. 3) shall not have any outside storage or display, except of vehicles for sale or rent 4) shall not have a public address system which is audible from any residential property 5) shall screen all storage areas 6) shall screen all display areas adjacent to a residential zone 7) shall apply the parking setback to all areas where vehicles are located 8) shall maintain a landscaped buffer 100' wide from any residential zone 9) all motor vehicle dealers shall be licensed by the state. None of the suggested conditions outside the landscaped buffer of 100' from a residential zone limit the potential properties that a vehicle sales or service operation could operate on. All properties fronting First Avenue West and East, except the north side of 500 block of First Avenue East, are greater than 100' from a residential zoned property. The suggested criteria offers very little restriction to locations or numbers of dealers, and currently in code these are suggested criteria that the Board may legally choose to waive or reduce. Although most dealers comply with the zoning ordinance and their conditional use permits, Planning staff routinely spend a greater amount of time the enforcing the zoning ordinance and conditional use permit conditions against vehicle dealers when compared to other businesses. The complaints typically involve vehicles parked on grass, excess signage, storage of unlicensed / inoperable vehicles, and outside storage of vehicle parts such as old tires. If the City Council approves a change to the City Code, existing dealers would become legal, non-conforming uses and would be permitted to continue operating. State Statute and City Code both govern legal, non-conforming uses, which allows the dealers to continue to operate under their current conditional use permits. The State Statute governing non-conforming uses was revised in 2004, which triggered a revision to City Code to allow more flexibility for non-conforming uses. Prior to 2004, a non-conforming use was not permitted to rebuild if the structures associated with the use were damaged greater than 50% of the value. Current City Code and State Statute allows owners of non-conforming uses to rebuild a structure completely destroyed by storms, fire, and even if the owner chooses to raze their building, as long as a building permit is applied for within 180 days of the building being destroyed. Planning staff reviewed several alternatives for addressing the concentration of used care dealers, including restricting proximity to an existing dealer, restricting used car dealerships to a specific area, or restricting used dealers to being part of a new dealership within the City. Without a large separation requirement, there are currently possibilities for multiple operations on First Avenue West and in commercial areas of Dean Lakes, Crossroads Center, Southbridge, and potentially the West End area. Staff also discussed the possibility of permitting used vehicle sales operations in the B-1 zone outside of a specified geographic area, such as excluding areas north of 2nd Avenue, west of Marschall Road and south and east of the northern city boundary. After discussing the alternatives with the City Attorney, it is recommended that the language limit used vehicle sales operations within the B-1 zone to dealers operating on the same site as a new vehicle sales operation authorized by a manufacturer. The proposed amendment allows for the maintenance of 16 dealers within the B-1 zone as legal non-conforming uses. It should also be noted that vehicle sales would continue to be a conditional use in the I-1, Light Industry zone. The proposed amendment does not remove the possibility of a future used vehicle sales operation locating within the city. Staff is currently reviewing a Conditional Use Permit request for a used vehicle sales operation at 312 First Avenue West, the former Payless Gas site. This request is scheduled to be heard at the October 8 Board of Adjustment and Appeals meeting. The applicant is Mark Peterson. Mr. Peterson has discussed the proposed text amendment with Senior Planner, Mark Noble, and also received written notice of the proposed amendment, since he owns and operates First Avenue Auto at 735 First Avenue East.' If the City Council adopts the proposed amendment, the revised regulations would be published and effective prior to October. Without a specific provision allowing pending applications, the Board of Adjustment and Appeals would not be able to approve Mr. Peterson's request. Staff recommends that the amendment not have a specific provision to allow pending applications. Recommendation Staff recommends adoption of Ordinance No. 912. Requested Action Following the public hearing, if the Council concurs, it is asked to adopt Ordinance No. 912, an ordinance amending City Code Section 11.36, Highway Business (B-1) regarding vehicle sales, service and repair. Attachments: Notice to Owners / Operators Ordinance No. 912 Map of Vehicle Dealers Zoned B-1 First Avenue Vehicle Dealer Map August 20, 2015 Dear Property Owner or Dealer: The City of Shakopee is considering changes to its Zoning Ordinance regarding the regulation of sales, service, and repair of vehicles within the B-1, Highway Business Zoning District. The possible revisions will be reviewed and public comments will be taken at the Sept. 1 City Council workshop. I have included a one-page fact sheet to explain how the proposed changes could impact your business or property. The City Council will be hearing and discussing this request at its Sept. lworkshop at 7 p.m. at City Hall, 129 Holmes St. S., at which time there will be a time for public comments on this proposal. If you have any questions on this proposal, please don't hesitate to contact me at (952) 233-9349. Sincerely, Kyle Sobota Planning Department Questions about Proposed Zoning Amendments Regulation of sales,service,and repair of vehicles within the B-1,Highway Business Zoning District What are the changes being proposed? Proposed amendments involve placing restrictions on future used-vehicle sales operations that are not a part of, or owned by, a new vehicle franchise. Proposed limits may also include minimum lot size or required spacing from an existing dealer. What does this mean for my business? As a current dealer or property owner, any amendment would allow a used-vehicle dealer to continue to operate at your site. What if the existing business does not meet the new amendments? Under all proposals, all existing dealerships would be allowed to operate in their current state. However, if an existing dealer were to become nonconforming by an amendment, the dealership would be considered a legal non-conforming use. This means, if an existing used-vehicle dealer were to cease operation on your site, a future dealer would be required to begin operation on the same site within 180 days or the site would need to be used for a different allowed land use in the Highway Business Zoning District. What if I want to make changes in the future? If the existing dealer does not currently sell new vehicles, the proposed amendment may require future land-use applications or restrict construction of new buildings/additions and/or major site plan alterations. What if the current dealer ceases operation? A future dealership that opens within 180 days would be governed by any existing Conditional Use Permit(s), which matches the current regulations. If the property sits vacant for more than 180 days, all existing Conditional Use Permit(s) expire and the property would not be eligible for a new Conditional Use Permit for used-vehicle sales. ORDINANCE NO. 912 AN ORDINANCE OF THE CITY OF SHAKOPEE APPROVING AN AMENDMENT TO CITY CODE SECTION 11.36 (HIGHWAY BUSINESS) WHEREAS, The City of Shakopee has proposed an amendment to City Code Section 11.36 (Highway Business, B-1 zone) of the Zoning Ordinance regarding vehicle sales and service; and WHEREAS, notices were duly sent and posted, and a public hearing was held before the Planning Commission on December 5,2013 and also at the City Council Meeting on September 1, 2015, at which time all persons present were given an opportunity to be heard; and WHEREAS, the Planning Commission recommended that City Code Section 11.36 be amended to revise the language pertaining to vehicle sales and service; and WHEREAS, the City Council heard the matter at its meetings on January 21, 2014 and September 1, 2015; and THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA, ORDAINS: Section 1 —That City Code Chapter 11 (Zoning) is amended to add the language as follows: Language which is underlined shall be added. Language which is struckthrough shall be deleted. Section 11.36, (Highway Business, B-1), Subd. 3 (Conditional Uses) L. vehicle sales, service, or repair; including general repair, rebuilding or painting service, replacement of any part or repair of any part, incidental body and M.)New vehicle sales N.)Used vehicle sales but only if the business is located on the same site as a new vehicle sales business authorized by the vehicle manufacturer. 0.)Vehicle service and repair, including minor and major repairs, body repair, and paint services. (Re-letter all entries accordingly). Section 2. The City Council adopts the following findings of fact relating to the request to modify the language in the City's zoning ordinance regarding vehicle sales and service. Criteria#1 That the original zoning ordinance is in error; Finding#1 There has been no evidence that the original zoning ordinance is in error, the proposed text amendment relates to classifications of different automotive uses. Criteria#2 That significant changes in community goals and policies have taken place; Finding#2 There have been significant changes in community goals and policies. A land use consultant hired by the City to perform a study on current and future land uses in the 101 /69 corridor, has heard from several members of the business community that the number of used vehicle sales operations 101 /69 corridor is limiting the potential for private investment in the corridor. A goal of the City Council is bringing new private investment to the corridor and thereby insure it's long term vitality, especially in view of the recent reconstruction of both highways 101 and 69 and the construction of the new Hwy 101 river crossing.. Finding#3 Used vehicle sales operations have consumed an inordinate amount of staff time when compared to other businesses in relation to complaints, zoning code violations, and enforcement of conditional use permit conditions. This tends to suggest that there may be other beneficial private commercial and other uses that would be more appropriate in the corridor for the long term. Criteria#3 That significant changes in City-wide or neighborhood development patterns have occurred; Finding#4 There has been no evidence presented that either city-wide or neighborhood development patterns have changed. The proposed ordinance allows for the continuation of used vehicle operations as legal, non-conforming uses. The proposed amendment only requires that additional used vehicle sales operations to be part of a new vehicle sales operation. Criteria#4 That the Comprehensive Plan requires a different provision; Finding#5 The Comprehensive Plan does not require a different provision. Section 3. Effective Date. This ordinance shall be in effect from and after the date of its passage and publication. Adopted in session of the City Council of the City of Shakopee, Minnesota held this day of , 2015. 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