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HomeMy WebLinkAbout[05] Discussion Special Use Permit f CITY OF ST. JOSEPH Planning Commission Agenda Item 5 MEETING DATE: August 6, 2012 AGENDA ITEM: Parking Requirement — 31 MN St W PREVIOUS PLANNING COMMISSION ACTION: See information in packet regarding Council request for action. BACKGROUND INFORMATION: Mike Deutz is requesting relief from the parking requirements for the special use permit that was issued in 2009. The SUP required paving of the parking lot by September 13, 2012. Since the request is total relief from parking a new public hearing will be held in September as it was a condition of the permit. If the request was to only pave a portion, then the Planning Commission could consider a revised plan. To follow is a letter from the City Attorney regarding the mater. Mr. Deutz cannot be at the meeting on Monday, so the matter is more discussion and information. ATTACHMENTS: Request for Planning Commission Action Memo — Tom Jovanovich Letters — Deutz Attorney Council Packet information REQUESTED PLANNING COMMISSION ACTION: MEMO TO: Judy Weyrens, City Administrator FROM: Tom Jovanovich, City Attorney RE: Request for Relief From Paved Parking Lot Condition in Special Use Permit for 31 Minnesota Street West OUR FILE NO.: 30810 DATE: August 2, 2012 Michael Deutz in the owner of 31 Minnesota Street West. The property currently houses a laundromat on the first floor and rental units on the second floor. The mixed use was allowed pursuant to a special use permit issued in 2006. The special use permit required that the owner of the property construct a paved parking lot on the north side of the property. Michael Deutz now comes before the Planning Commission requesting relief from providing any paved parking. ISSUE Whether the requested relief by Michael Deutz to be relieved from paving the parking lot on the north side of 31 Minnesota Street West requires a public hearing or a simple recommendation from the Planning Commission? SHORT ANSWER It appears that Michael Deutz is requesting complete relief from providing paved parking to the north of 31 Minnesota Street West. If this is the case, the Planning Commission should hold a public hearing on the matter since Mr. Deutz is requesting a change in one of the conditions which allowed the special use permit for the mixed use in the B -1 District. However, if Mr. Deutz is willing to construct the paved parking lot with some modifications based on his current use of the property, it would be appropriate for the Planning Commission to review the matter without a public hearing since the conditions of the special use permit would still be met. DISCUSSION AND BACKGROUND The property is zoned Central Business District — B 1. In 2006, Percheron Properties requested a special use permit to allow a mixed use development at 31 Minnesota Street West. A special use permit is needed to allow mixed use in the B -1 District. A condition of the special use permit was that the developer enter into a developers agreement with the City which would specify the conditions for the special use permit. 1 A Developers Agreement between Percheron and the City was signed on March 14, 2006, and was recorded with the Stearns County Recorder on April 26, 2006. The Developers Agreement required certain developer - constructed improvements. One of the conditions for improvements was to upgrade the building exterior, which also required the developer to "provide at least 21 off - street parking spaces based upon the mixed uses of the property." The Developers Agreement specifically required that "The parking lot must meet the standards outlined in St. Joseph Code of Ordinances 52.10, Subd. 5 and further resident parking must be designated and marked as shown on Exhibit A." Exhibit A is page 7 of the Developers Agreement. It is attached hereto and marked as Exhibit A. It sets forth in some detail the parking plan for the building which was required as a condition of the special use permit. The Developers Agreement also provided that "the terms and provisions of this Agreement shall be binding upon and accrue to the benefit of the ... successors and assigns of the parties hereto and shall be binding upon all future owners of all or any part of the Development and shall be deemed covenants running with the land." Accordingly, the Developers Agreement and the obligations set forth in the Developers Agreement apply to all subsequent purchasers of the property, including Mr. Deutz. In 2009, Mr. Deutz petitioned the City to be granted relief from the exterior requirements of the Developers Agreement for a two -year period. On September 3, 2009, the City Council accepted the recommendations of the Planning Commission and granted Mr. Deutz a two -year extension on completing the exterior requirements, which included the paved parking lot. The minutes from the Planning Commission meeting at which Mr. Deutz requested the two -year extension from the parking requirements of the Developers Agreement contain the arguments that Mr. Deutz made for an extension at that time. The minutes state: "while he is not opposed to completing the improvements, he is not sure the future use of the building and if it is financially feasible to rehabilitate the property. This property is also in the Redevelopment District and before additional capital is invested in the property, he would like an additional time to review the options." He stated that "they plan to keep the area clean and get a tenant for the lower level. If that happens, he will do something with the parking lot." Based on the minutes, it appears that it was Mr. Deutz' intent to complete the parking lot if he could get a tenant for the lower level. He now has a tenant for the lower level. In granting the request for an extension of time in which to complete the parking lot, the City Council made the following recommendations: 1. The property shall remain in compliance with the St. Joseph Code of Ordinances regarding the ratio of residential dwelling units and commercial space. 2. The property owner will not be required to pave the parking area or complete a landscape plan until September 30, 2012. 3. The property owner will submit development plans to the Planning Commission before completing the paving and landscaping. 2 PROCEDURES TO BE FOLLOWED Mr. Deutz, through his attorney, now requests complete relief from the parking lot requirements as set forth in the Developers Agreement and leave the parking area in an unpaved state. If Mr. Deutz insists on obtaining complete relief from the requirement to pave the parking lot, then the special use permit should be amended and another public hearing will have to be held to support the amendment. The request that Mr. Deutz is now making is a substantial change to the Developers Agreement and the conditions of the special use permit. Accordingly, if he is requesting complete relief from the parking lot requirement, another public hearing will have to be held to amend the special use permit. To the extent that Mr. Deutz is willing to pave the parking lot, but request relief from the 21 parking spaces based on the changed use of the business area, the Planning Commission could review such plans and make changes based on the change in commercial use from an office complex to a laudromat. This would not require a hearing, but simply a review of the plans to insure they meet the requirements of the parking in the Central Business District. Section 52.10, Subd. 4 sets forth the requirement for off - street parking in the St. Joseph Ordinances. With respect to the Central Business District, the Ordinance states that the required off - street parking in the Central Business District for existing or new uses and improvements to existing buildings which do not increase the area used for commercial or residential /rental use shall be determined by the Planning Commission with approval by the City Council prior to the issuance of a building permit. The amount of parking space required shall be based on the anticipated demand for parking and loading space, the length of which is generated by the particular business and the availability of other parking spaces in the Central Business District. Lastly, it is my understanding that the City has required some paved parking lot space in the Central Business District when there has been a mixed use of commercial and residential. The City required this for the Shops and Lofts Projects (27 paved parking spaced) and Papa Guiseppe on mixed use (parking for the residential units). 3 Mil RINKE NOONAN attorneys at law July 27, 2012 Direct Dial: 320- 257 -3868 Aripple@RinkeNoonan.com City of St. Joseph Planning Commission c/o Judy Weyrens 25 College Avenue North PO Box 668 St. Joseph, MN 56374 SENT VIA US MAIL & EMAIL TO: iweyrensAcityofstioseph.com Re: 31 Minnesota Street Our File No. 7959.005 Dear Ms. Weyrens: Our office represents Mike Deutz. The purpose of this letter is to formally submit development plans for Mr. Deutz's property at 31 Minnesota Street (the "Property ") to the Planning Commission as requested by the City Council at its July 19, 2012, meeting. BACKGROUND The Property is zoned Central Business District -B1, and is subject to a Developer Agreement with the City dated March, 14, 2006 (the "Agreement "). In the Agreement, the prior owner had planned to develop commercial office space on the Property. The prior owner determined that the proposed development was not financially feasible and Mr. Deutz eventually purchased the Property. In 2009, a special use permit was transferred to Mr. Deutz to allow residential use in the upper levels of the building located on the Property. At the time of the transfer, Mr. Deutz was unsure of the best use for the Property and the City, by resolution, granted Mr. Deutz an extension of time to complete exterior improvements to the building, address parking, and submit a landscaping plan. Mr. Deutz has since completed the exterior improvements, completed renovation in the interior of the building, leased upper portions of the building to residential tenants, and opened a laundromat on the ground level of the building. Mr. Deutz has removed a dilapidate garage from the Property, graded the north side of the Property, and laid down crushed granite. REQUEST Mr. Deutz requests to (1) be released from unrealistic requirements in the defunct 2006 development plan; and (2) that he be allowed to leave the parking area on the Property unpaved and in its present state. Suite 300 US Bank Plaza F:\DATA \7959 \005\Lettersletta City of St. Joseph Planning Commission 7 27 2012.docx 1015 W St. Germain St. 7/27/2012 10:36 AM PO, Box 1497 St. Cloud, MN 56302 320.251.6700 www.rinkenoonan.com City of St. Joseph Planning Commission July 27, 2012 Page 2 RATIONALE 1. In the resolution dated September 3, 2009, the City Council acknowledged the prior owner's determination that the development plan proposed in the Agreement is no longer financially feasible. To hold Mr. Deutz to the previously proposed development plan will ensure financial failure for the development of the Property. In fact, the City has permitted Mr. Deutz to redevelop the Property differently than proposed in the defunct development plan for the Property, and he has opened a laundromat instead of commercial office spaces. This change to a less intensive use should be accompanied by a less intensive parking requirement. 2. The Agreement required the creation of 21 parking stalls in compliance with the parking lot standards in Section 52.10, Subd. 5, of the City Ordinance. However, Subd. 4 of the same Section of the Ordinance exempts property in the Central Business District from any off - street parking requirement. Mr. Deutz requests to have his existing building treated with the same exemption as similarly situated properties. 3. Mr. Deutz has invested significant funds to renovate the Property. Paving the north side of the Property as contemplated in the defunct development plan from 2006 is estimated to cost in excess of $40,000. The revenue stream from the Property does not currently pay for the operation and maintenance cost of the Property. Any requirement to incur additional costs associated with paved parking will not create additional cash flow. Such a requirement will only magnify the existing cash flow problem and potentially add to the number of vacant commercial sites that the Council has acknowledged is a problem within the City. 4. The removal of the dilapidated garage has created a significantly larger parking area than contemplated in the defunct development plan from 2006. Paving only a portion of the Property is not very practical or financially prudent; paving the entire north side of the Property is unreasonable and cost prohibitive. 5. The north side of the Property that has been graded and covered with crushed granite currently serves as a very functional parking area. The area is utilized by surrounding businesses for their delivery trucks and customers and by patrons of fundraisers put on by local charitable organizations. Mr. Deutz is happy to accommodate the continued use by these businesses and charitable organizations if the Property is permitted to remain unpaved. Mr. Deutz, however, is not willing to foot the bill for providing paved parking for others. CONCLUSION Mr. Deutz desires to continue to work with the City to resolve any issues or concerns related to 31 Minnesota Street in a manner that allows him to continue his current business use of the F:\DATA \7959\ 005\Letters\Letter City of St. Joseph Planning Commission 7 27 2012 docx 7/27/2012 10:36 AM City of St. Joseph Planning Commission July 27, 2012 Page 3 Property. Mr. Deutz requests that he not be held to the requirements of an unworkable development plan from 2006 that he did not participate in and which exceed the present requirements of the City's ordinances. Mr. Deutz proposes to continue to operate his business on the Property as it is currently configured without paved parking. It is our understanding that Mr. Deutz's request will be considered by the St. Joseph Planning Commission at its August meeting. The Planning Commission will then forward a recommendation to the City Council for final consideration. Mr. Deutz intends to appear at both of those meeting. If you have questions, concerns, or request additional information, please feel free to contact me at 320/257 -3868. Sincerely, >4 Adam A. Ripple AAR/jlp cc: Mike Deutz F:\DATA \7959\ 00S\Letters\Letter City of St. Joseph Planning Commission 7 27 2012.docx 7/27/2012 10:36 AM tri RINKE NOONAN attorneys at law August 2, 2012 Direct Dial: 320 - 257 -3868 Aripple@RinkeNoonan.com City of St. Joseph Planning Commission c/o Judy Weyrens 25 College Avenue North PO Box 668 St. Joseph, MN 56374 SENT VIA US MAIL & EMAIL TO: iweyrens(&cityofstioseph.com Re: Property: 31 Minnesota Street, St. Joseph, MN Our File No. 7959.006 Dear Ms. Weyrens: This is a follow up to my letter dated July 27, 2012. It is my understanding that the next St. Joseph Planning Commission meeting will be held on August 6, 2012. Mr. Deutz will be out of the state on that day and will unfortunately not be able to attend that Planning Commission meeting. Mr. Deutz asks that the Planning Commission consider his request at its September 10, 2012 meeting instead of its August 6, 2012 meeting, so that he can be present to answer questions or address any concerns from the Planning Commission. While Mr. Deutz believes this may still leave an adequate amount of time to address the matter prior to September 30 deadline referenced in the June 8, 2012 letter from the City, he asks that the City remain flexible on timing. Mr. Deutz has made a good faith effort to resolve this issue in a timely manner. Mr. Deutz previously requested to appear before the Planning Commission in July as he was directed to do in the June 8, 2012 letter from the City, but he was instead told to appear before the City Council. The Council, at its July 19, 2012 meeting, took no action and simply referred the matter back to the Planning Commission. As previously stated, Mr. Deutz desires to continue to work with the City to resolve any issues or concerns related to 31 Minnesota Street in a manner that allows him to continue his current business use of the Property. Mr. Deutz requests that he not be held to the requirements of an unworkable development plan from 2006 that he did not participate —one which exceeds the present requirements of the City's ordinances. Mr. Deutz proposes to continue to operate his business on the Property as it is currently configured without paved parking. If you have questions, concerns, or request additional information, please feel free to contact me at 320/257 -3868. Sinc rely, Adam A. Ripple AAR/i 1 Suite 300 US Bank f 1015 W St. Germain St. 50. Box 14ee: Mike Deutz St. Cloud, MN 56302 320.251.6700 www.rinkenoonan.com Extract of Council minutes July 19, 2012 Parking Lot Request: Mike Deutz appeared before the Council to discuss the provisions placed on the Special Use Permit for 31 Minnesota Street West. Deutz stated that he purchased the building located at 31 Minnesota Street West and the agreement requiring the pavement of the parking lot was required from the prior special use permit. Loso stated that the while the requirement was attached to the property from a prior special use permit, it remained with the property and Deutz was given two years to complete the required improvements. Schultz questioned Deutz as to his request at this meeting to which Deutz stated he wanted to discuss the requirements for paving the parking lot. He stated the property has changed since the original development agreement and he is questioned what portion or the amount of paving the City will require. Weyrens provided an illustration from the recorded development agreement which indicates that the entire parking area would be paved and landscaped. She clarified that since the agreement was recorded the Ordinance requirements have changed and perimeter curbing in the central business district is no longer required if adequate storm water facilities are available. Deutz stated that since he purchased the property he has made improvements such as removing the garage that was in poor condition and completing some exterior finishing. Deutz stated that the building is not fully occupied and cannot absorb additional costs such as paving the parking lot. Schulz again questioned what Deutz is requesting at this time. Deutz stated that he proposed to not pave the parking lot, but if he is required to, he is requesting direction as to the area that must be paved. Deutz stated that he had requested to appear before the Commission, but was instructed to appear before the Council. He is looking for some relief in the parking requirements. Jovanovich stated that since the property is operating under a special use permit, there are three options for moving forward: 1) If the requirements that were attached to the special use are not completed by the deadline, the special use permit can be revoked or suspended; 2) the conditions of the special use could be amended through the hearing process; 3) a revised plan could be considered that meets the intent of the special use. Jovanovich stated that Deutz requested relief from the requirements, which implies an acknowledgement that he is subject to the terms and conditions. Jovanovich clarified that the Ordinance does require pavement of parking Tots and for existing parking lots, the application of a building permit triggers the requirement. Deutz stated that there are examples such as the Legion who does not have improved parking areas. Loso clarified that the Legion did not secure a building permit; therefore the parking lot is not required to be paved. The Council referred the matter to the Planning Commission for recommendation at the next regular meeting. Deutz was instructed to submit a written request to the City Offices for review and comment no later than July 25. k ." 94)1 / 4 Atelt CITY OF N7 r Council Agenda Item 6 MEETING DATE: July 19, 2012 AGENDA ITEM: Mike Deutz, Request for parking relief SUBMITTED BY: Administration BOARD /COMMISSION /COMMITTEE RECOMMENDATION: In 2009 the Planning Commission conducted a public hearing to consider the issuance of a special use permit to allow mixed density at the property located at 31 Minnesota Street West. The recommendation for issuance included a provision whereby Mr. Deutz would be granted relief on the exterior requirements for a period of two years. PREVIOUS COUNCIL ACTION: On September 3, 2009 the Council accepted the recommendation of the Planning Commission and granted Mr. Deutz a two year extension on completing the exterior requirements. The special use permit indicated that the requirements be completed no later than September 2012. Prior to Mr. Deutz purchasing the property, a development agreement was executed and recorded which included the same exterior requirements. The Commission used the same requirements and provided for a two year window. Without the Special Use Permit the property would not have been eligible for a rental license. BACKGROUND INFORMATION: Tom Herkenhoff called to have the matter placed on the agenda for Mr. Deutz and stated they would like to discuss alternatives. I requested that a written request be submitted, as that is the procedure and he opted not submit anything. Herkenhoff stated there were too many issues and they needed to be discussed. BUDGET /FISCAL IMPACT: ATTACHMENTS: Request for Council Action June 8, 2012 Letter to Mr. Deutz Executed and recorded Special Use Permit September 16, 2009 Letter notifying Deutz of temporary relief September 3, 2009 City Council Minutes August 31, 2009 Planning Commission Minutes REQUESTED COUNCIL ACTION: This page intentionally left blank • CITY OF ST. J OSFPH ro'w '.cityof stjose ph.com June 8, 2012 Michael Deutz PO Box 634 Administrator St. Joseph MN 56374 ludyikrau RE: Spedal Use Requirements — 31 Minnesota St W Mayor Dear Mike: Rick Schultz Please find attached the executed resolution of finding issuing a special use permit for your Council= property located at 31 Minnesota Street West. As you are aware the special use permit to Steve Frank allow for mixed use of residential and commercial at the aforementioned property provided Bob Loso relief from the exterior requirements for a period of two years. Renee Symanietz Dale Wick As in indicated in the resolution adopted by the City Council on September 3, 2009, the exterior improvements must be completed no later than September 30, 2012. The resolution further indicates that the plans for improvement must be reviewed and approved by the Planning Commission. Therefore, please allow enough time for approval and completion so that the completion requirement can be fulfilled. If you have any questions or need additional information please feel free to contact me at 320.363.7201. Sincerely, CITY OF ST. JOSEPH 0y O eyrens inistrator cc: Randy Sabart, City Engineer Tom Jovanovich, City Attorney Terry Thene, Public Works Director zs College Avenue North • PO Box 668 • Saint Joseph, Minnesota ;6374 Phone 3to.363.7sor Fax 3Lo.363.o342. OFFICE OF COUNTY RECORDER i Ck STEARNS COUNTY, MINNESOTA Document: A1317544 • Certified, Filed, and /or Recorded on -M June 09, 201012:23 PM DIANE GRUNDHOEFER STEARNS COUNTY RECORDER Resolution of finding • The request of Mike Deutz, for Special Use Permit came before the Planning Commission at a public hearing held on August 31,•2009. The purpose of the hearing was to consider gn amendment to the spedal use permit issued on illy 16, 2009 providing relief of the exterior requiremeflts to include parking and landscapkrg. The special use Issued on July 16, 2009 allowed for a mixed use of residential and commercial. The property b located at 31 Minnesota Street W and Is legally described as follows: Lot seven (7), Block nine (9), Tess the East 6 feet thereof; ALSO LESS the South 99 feet of Lot 7, Tess the East 10 feet thereof, Biotic 9, all in Original TownsIte (now City) of St. Joseph; according to the plat and survey thereof, now on file and record kr the office of the County Recorder in and for Steams County, Minnesota. • and. • • Lot Eight (8), Tess the East 2 feet thereof, and the East 6 het of Lot Seven (7), Blocc Nine (9), Town (now City) of St. Joseph, according to the plat and survey thereof, now on file and of record In the office tithe County Recorder In and for Stearns County, Minnesota. The request for Special Use has been submitted by Mike Deutz, PO Box 634, St. Joseph, MN 56374. Notice of this matter was duly served and published. In consideration of the information presented to the Planning Commission and its apptiation to the Comprehensive Plan and Ordinances of the City of 5t. Joseph, the Planning Commission made the folIowkrg findings: • L The City Coundi, upon recommendation of the Planning ComMission, issued a spedal use permit to Mow a mixed use development at 31 Mkrnesota Street West. The Coundl further authorized execution of a • Development Agreement that Included redevelopment of the property over a two year period, with the exterior Improvements completed no later than September 2010. 2. The property owner requesting spedal use on July 6, 2009 has since sold the property as it was his determination that the project was not finandally feasible. 3. Since Specal Use Permits are transferable and recorded with the property the new property owner can assume the terms and conditions of the SIP issued on July 16, 2009. 4. The property at 31 Minnesota Street Is (was) In a state of repair and the new property owner is requesting • additional time to evaluate the best use of the fadlity and whether or not the fadlity should be razed or Improved. 5. Due to the economic conditions, the City of St. Joseph has a number of vacant commercial sites for lease and the proposed use will add to the inventory and the property owner cannot assure that a tenant can be secured for the commerdal portion of the fadlity. • Approval of the amendment to the special use permit issued on July 16, 2009 providing relief of the exterior requirements to include parking and landscaping with the following contingencies: 1. The property shall remain in compliance with the St. Joseph Code of Ordinances regarding the ratio of residential dwelling units and commercial space. 2. The property owner will not be required to pave the parking area or complete a landscape plan until September 30, 2012. 3. The property owner will submit development plans to the Planning Commission before completing the paving and landscaping. Adopted this 3ni day of 5entember, 2009 I tItL > ' ATTEST .. TTEST :IP :' 'r "';',<__ _ 'N. • : : ;e ase — hl '. m Ml ,, .. , •01, THIS DOCUMENT DRAFTED BY: Judy Weyrens city of Sc Joseph PO Boa 666 St. Joseph, MN 56374 (320)363 -7201 - , .. G . . • . • • : sP oL - '!! CITY OF ST. J OSFPH . , www.cit stioseph.com September 16, 2009 Administrator Mike Deutz J Wey ns PO Box 634 St. Joseph MN 56374 Mayor RE: Special Use Permit — Temporary Relief of Exterior Requirements Al Ressier Councilors Dear Mike: Steve Fronk Bob Loso As you are aware the City Council considered your request for amendment to the Special Use Renee Symonietz Permit issued on September 3, 2009. Attached is a copy of the Resolution of Finding adopted Dole ick by the City Council. The City Council approved relief on the parking and exterior improvements until September 30, 2012. If/When you decided to move forward with the improvements a site plan must be submitted for review and approval by the Planning Commission. Please allow a minimum six weeks from the time of application to approval. If I can be of further assistance please feel free to contact me at 320.363.7201. Sincerely, CITY OF ST. JOSEPH lb- eyr n s 0 nistrator zs College Avenue North • PO Box 668 - Saint loseph, Minnesota 56374 Phone 3zo.363.7zoT Fox 3zo.363.o341 Resolution of finding The request of Mike Deutz, for a Special Use Permit came before the Planning Commission at a public hearing held on August 31, 2009. The purpose of the hearing was to consider an amendment to the special use permit issued on July 16, 2009 providing relief of the exterior requirements to include parking and landscaping. The special use issued on July 16, 2009 allowed for a mixed use of residential and commercial. The property is located at 31 Minnesota Street W. The request for Special Use has been submitted by Mike Deutz, PO Box 634, St. Joseph, MN 56374. Notice of this matter was duly served and published. In consideration of the information presented to the Planning Commission and its application to the Comprehensive Plan and Ordinances of the City of St. Joseph, the Planning Commission made the following findings: 1. The Clty Council, upon recommendation of the Planning Commission, issued a special use permit to allow a mixed use development at 31 Minnesota Street West. The Council further authorized execution of a Development Agreement that included redevelopment of the property over a two year period, with the exterior improvements completed no later than September 2010. 2. The property owner requesting special use on July 6, 2009 has since sold the property as It was his determination that the project was not financially feasible. 3. Since Spedal Use Permits are transferable and recorded with the property the new property owner can assume the terms and conditions of the SIP issued on July 16, 2009. 4. The property at 31 Minnesota Street is (was) in a state of repair and the new property owner is requesting additional time to evaluate the best use of the facility and whether or not the facility should be razed or Improved. 5. Due to the economic conditions, the City of St. Joseph has a number of vacant commercial sites for lease and the proposed use will add to the inventory and the property owner cannot assure that a tenant can be secured for the commercial portion of the fadllty. Approval of the amendment to the special use permit issued on July 16, 2009 providing relief of the exterior requirements to include parking and landscaping with the following contingencies: 1. The property shall remain In compliance with the St. Joseph Code of Ordinances regarding the ratio of residential dwelling units and commercial space. 2. The property owner will not be required to pave the parking area or complete a landscape plan until September 30, 2012. 3. The property owner will submit development plans to the Planning Commission before completing the paving and landscaping. Adopted this at day of September, 2009 A . � /i ce , . ATTEST Alan Rassier, Mayor Ju . • eyrens • d ni -tor September 3, 2009 Page 1 of 5 Pursuant to due call and notice thereof, the City Council for the City of St. Joseph met in regular session on Thursday, September 3, 2009 at 7:00 PM in the St. Joseph city Hall, opening the meeting with the Pledge of Allegiance. Members Present: Mayor Al Rassier, Councilors Renee Symanietz, Dale Wick, Bob Loso, Steve Frank and City Administrator Judy Weyrens City Representatives Present: Finance Director Lori Bartlett, Public Works Director Terry Thene, Police Chief Pete Jansky, City Engineer Randy Sabart Others Present: None Public Comments: No one present wished to speak. Approval of the Agenda: Wick made a motion to approve the agenda as presented. The motion was seconded by Symanietz. Discussion: Frank questioned the minutes of August 19. He was concerned that not all of their priorities were addressed. Rassier assured Frank that everything was noted; however, they may not have been all in one section of the minutes. The motion passed unanimously. Consent: Loso made a motion to approve the consent agenda as follows: a. Minutes — Approve the City Council minutes of August 19 and August 20, 2009. b. Bills Payable — Approve check numbers 041930 -041965 and EFT numbers 000315- 000319 and 000466 -000467. The motion was seconded by Wick and passed unanimously. Mike Deutz. 31 Minnesota Street W. Special Use Permit: Weyrens reported that the Planning Commission conducted a public hearing on September 3, 2009 to consider an amendment to the Special Use Permit issued on July 16, 2009 for the property located at 31 Minnesota Street West. The Special Use Permit allowed for a mixed density development consisting of residential and commercial. The Special Use Permit issued required the exterior improvements, including landscaping and bituminous paving to be completed no later than September 30, 2010. Since July 16, 2009, the property has changed ownership and the new property owner, Mike Deutz, has requested additional time to complete the exterior requirements. The Planning Commission has recommended the Council extend the time period for exterior im • rovements to September 2012. yF r wve.e y m il's"€. ^ v Discussion: It was indicated that this property is eligible for TIF and Frank questioned whether or not the owner will make application for such. Weyrens replied that there has been no indication of that, but added that he has the option to use if needed. Frank questioned what happened to the students that were originally going to live in the upstairs apartment. Weyrens stated that they will be living in the units at 31 Minnesota Street West. Deutz has completed the rental license process and they are ready for occupancy. The motion passed unanimously. 2010 Preliminary Budget: Loso made a motion to authorize execution of Resolution 2009 -020 Adopting the Proposed Collectible 2010 Levy and establish the hearing for the budget on December 3, 2009 with anticipated adoption on December 17, 2009. The motion was seconded by Wick. Extract of Planning Commission Minutes August 31, 2009 Page 1 of 2 Public Hearing, Special Use Permit — Mike Deutz, 31 Minnesota Street W: Acting Chair Ross Rieke called the hearing to order and stated that the purpose of the hearing is to consider an amendment to the Special Use Permit issued on July 16, 2009 providing relief of the exterior requirements to include parking and landscaping. The Special Use issued on July 16, 2009 allowed for a mixed use of residential and commercial. The property is located at 31 Minnesota Street W. The request was submitted by Mike Deutz, PO Box 634, St. Joseph, MN 56374. Rieke opened and closed the hearing at 7:00 PM as there was no one wishing to speak. Weyrens stated since the Council approved the Special Use Permit on July 16, 2009 for the mixed density at 31 Minnesota Street West, the property has changed ownership. While a Special Use Permit remains with the property and is transferable, the conditions of the permit issued must be adhered to. If a property owner intends to modify the conditions, an amendment to the Special Use must be completed. This process would include a public hearing and restatement of conditions. In the matter before the Planning Commission at this time, Mike Deutz has purchased the property in question and is requesting relief on the requirement to complete the exterior requirements in 2010. While he is not opposed to completing the improvements, he is not sure the future use of the building and if it is financially feasible to rehabilitate the property. This property is also in the redevelopment district and before additional capital is invested in the property he would like additional time to review options. McDonald stated that he has seen a remarkable transformation of the property since Deutz has purchased the property. The garages have been removed and the parking area has been graded. In addition the interior of the building has been improved for occupancy. Given the current market, he stated that he understands why Deutz is requesting the amendment. Wick stated that they need to figure out if there is a date for when the landscaping and paving is to be completed. Deutz stated that Weyrens did a good job of summarizing where the property is at and why he has done what he has. He added that there are some issues with the property. For example, there is not enough water for a huge user. They plan to keep the area clean and get a tenant for the lower level. If that happens, he will do something with the parking lot. Orcutt questioned whether they will need to have the exterior completed by 2010, to which Weyrens stated that the proposed Resolution of Findings offers an alternative date for completion. The date was based on the request from the applicant. Deutz clarified that the previous property owner had a tenant for the lower level so the exterior completion date worked for him, whereas he does not have a tenant for the lower level. He further stated that he would like to revisit this in a couple of years or when /if a tenant moves in. McDonald questioned the contingency relating to the ratio of residential dwelling units to commercial space. Weyrens clarified that, at no point, could they have more than 50% of the space used for residential. According to Deutz, there are several other buildings which have the same layout with commercial on the lower level and rental on top. Meyer agreed with the developer [Deutz] and stated that it is a tight market for rental properties right now. He added that he is in favor of waiting until a tenant comes along. Meyer made a motion to approve the Resolution of Findings recommending approval of the amendment to the special use permit issued on July 16, 2009 providing relief of the exterior requirements to include parking and landscaping with the following contingencies: 1. The property shall remain in compliance with the St. Joseph Code of Ordinances regarding the ratio of residential dwelling units and commercial space. 2. The property owner will not be required to pave the parking area or complete a landscape plan until September 30, 2012. Extract of Planning Commission Minutes August 31, 2009 Page 2 of 2 3. The property owner will submit development plans to the Planning Commission before completing the paving and landscaping. The motion was seconded by Orcutt. McDonald asked for clarification of the deadline for the exterior improvements. Wick advised him that they are recommending approval of the contingencies stated in the resolution of findings. Wick stated that if the space is leased, he would need to bring a development plan back to the Planning Commission. Meyer added that there are some real challenges to putting a tenant in that building. The motion passed unanimously. Mike Deutz resumed his Chair.