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HomeMy WebLinkAbout2013 [07] Jul 01July 1, 2013 Page 1 of 4 Pursuant to due call and notice thereof, the Planning Commission for the City of St. Joseph met in regular session on Monday, July 1, 2013 at 6:30 PM in the St. Joseph City hall opening with the Pledge of Allegiance. Members Present: Chair Ross Rieke, Commissioners Gina Dullinger, Chad Hausmann, Matt Killam, Commissioner -Elect Darryl Schaefer. Council Liaison Rick Schultz. City Administrator Judy Weyrens. Members Absent: Commissioner Brad Cobb. Others Present: Mary Czech, Cory Ehlert, Keith Eisenschenk Approval of the Agenda: Schultz made a motion to approve the agenda with the addition of Oath of Office as Agenda Item 2.5. Dullinger seconded. Motion carried unanimously. Darryl Schaefer was sworn in as a Planning Commissioner by taking the Oath of Office as administered by Weyrens. Approval of the Minutes: Schultz made a motion to approve the May 13, 2013 minutes as presented; seconded by Hausmann and passed unanimously by those present. Public Hearing - Special Use Permit, Keith Eisenschenk: Chair Rieke called the hearing to order to which Weyrens stated the purpose of the hearing is to consider a Special use Permit Use to allow a non -owner occupied rental at 504 MN St E. The property is legally described as Lot 1 Block 1 Braden and Bennet Place. St. Joseph Code of Ordinances 52.28 subd. 3(n) identifies Non -owner occupied rental as a use only permitted through the issuance of a special use permit. The request for special use has been submitted by Keith Eisenschenk, 1447 Wildwood Road, St. Cloud. Weyrens stated that the property in question has been used as a rental in the past; however, it was licensed at a time when unoccupied rental was permitted in the R2 Zoning District and as long as the license did not lapse for one year, the rental could continue. In 2009, the property owners at that time opted to plat the property as condominiums, assigning separate parcel identification numbers with the intent to sell as single family homes. The property was sold and the new owners at that time opted to continue the rental license process until they let the property go back to the bank. The property did not secure a rental license for 2010/2011 therefore the grandfather status is forfeited. The property was in the foreclosure process and the new property owner is requesting authority to operate the property as a non -owner occupied rental. Weyrens stated that the current R2 Zoning District allows for non -owner occupied rental only through issuance of a special use permit. Weyrens stated that she received a petition with 15 signatures representing 9 properties stating objection to the proposed request. The petition read "We the undersigned, are objecting to the issuance of a Special -Use Permit for the proposed rental property located at 504 Minnesota St E. As close neighbors to this property, we feel this is a family neighborhood which is most conducive to long term residence with the pride of ownership. We feel that the owner occupied rental properties are more in line with keeping our neighborhoods clean, well -kept and orderly ". Commission Members questioned Weyrens as to the difference between an Interim Use Permit and Special Use Permit. Weyrens stated that an interim is temporary in nature, has a sunset period and can be revoked; whereas a special use permit is more difficult as once it's issued, it stays with the property. You can still put conditions on it, but it remains with the property. Rieke confirmed that the building has been vacant and has lost its status, so Mr. Eisenschenk requests reinstatement. Keith Eisenschenk spoke on his behalf and stated that he purchased the western unit and intends to use the property for non - student rental. When questioned if he intends to purchase the eastern property he stated that had tried to but the portion is still in the foreclosure process with a separate vendor so it was not available at this time. July 1, 2013 Page 2 of 4 Schultz verified that Eisenschenk resides in St. Cloud and questioned Weyrens as to the response time required with a rental license. Weyrens stated that the rental ordinance requires that the property owner or manage must reside within 30 minutes of the property, which Eisenschenk meets. Hausmann questioned if there's a chance that one side could be owner - occupied and the other rental, to he responded yes. Hausmann stated that utilizing the property as rental appears to be consistent with the surrounding land uses as there are two (2) four- plexes across the street which are non -owner occupied rental and an addition property to the east of the subject property that is also rental. Dullinger confirmed that a non -owner occupied rental is allowed by ordinance with a special use permit. Weyrens clarified that the rental license limits the number of occupants to three unrelated persons and required an annual license and inspection. If the property is not managed in accordance with the Ordinances the City can withhold a license or fine the property owner, remedies are available. Schultz questioned if there is a barrier behind the buildings on the South side. Eisenschenk stated that there is a wood fence and he intends to create a barrier so that the backyard is not used for access or parking for the unit located at 508 MN St E. Mary Czech, 511 Able Street East, approached the Commission. She stated that she lives adjacent to the property. She's lived there 24 years and they constructed the wooden fence referred to by Eisenschenk, as the former owner rented to College students and they had college students putting kegs on their property, throwing contraband over the fence, would climb over the fence, use their backyard as a urinal, tried to start the fence on fire and wandering in their backyard to find a way out. They had to call the police numerous regarding student issues. She would like some clarification of how the landlord will screen the tenants and who will be accountable for their behavior. What protections are there for them in their neighborhood? They want to have and be good neighbors. Eisenschenk stated that doesn't plan to rent to college students as they College /University has residency requirements. He is working on fixing up the home and intends to hold the tenants accountable and he only live five (5) minutes if something does happen. He encourage the neighbors to contact him directly if they have any concerns. The public hearing was closed at 7:20 pm. Weyrens said that since it's a special use permit, the Board is required to have Findings of Fact to verify their decision. The basic Findings of Facts were available, but the Planning Commission has to complete the decision and conclusion. Whatever the decision is, it has to meet the maximum density and can't exceed it, if approved. Hausmann confirmed that the rental license comes up for renewal yearly, but what is the process? Weyrens stated that rental licenses are effective from August 15 to August 14 of each calendar year. The City Offices mails license information each may and the landlord is required to complete an inspection for life /safety and pay an annual license fee. Hausmann stated that he walks by the subject property five to six times per week and it is his opinion that the proposed use should be granted as it is consistent with the area. Dullinger concurred and stated that the requirement to abide by the maximum number of tenants helps manage the property. Additionally the property historically has operated as a rental property so the use is not changing the characteristic of the neighborhood. Rieke questioned Weyrens if the special use permit would be attached to the property to which Weyrens stated yes. The special use permit will transfer with the property and be available to new property owners. As stated above, the Commission cannot sunset a special use or add a requirement that it will cease upon transfer of ownership. Schultz showed concern that it's subjective, not objective. If there are violations, what path can be followed to suspension or revocation of the license? Not saying Eisenschenk is of this character, but Schultz wants to protect the city and residents in case there are excessive violations so they take care of July 1, 2013 Page 3 of 4 both sides. It promotes landlord responsibility as well as provides the City an opportunity to revoke the license if necessary, or provide an opportunity to correct the situation of future violations. Rieke asked about current inventory — are all owner occupied rentals under a special use permit? Weyrens responded that this one is zoned R2 and may be the only property with a special use permit, other properties in the City are grandfathered and can continue until the use cease for a period of one year. The City does have a number of owner occupied rental units operated by issuance of an Interim use permit and they include provisions limited property transfer. Schlutz made a motion recommending the City Council accept the Findings of Fact, granting a Special Use Permit to Keith Eisenschenk allowing a non -owner occupied rental unit at 504 MN St E based on the following facts and contingencies: FACT 1. The St. Joseph Code of Ordinance allows non -owner occupied rental as a use by issuance of a Special Use Permit. 2. The property owner has completed the required application process, meeting the criteria. 3. Granting of the Special Use Permit does not change the characteristics of the neighborhood, 4. The request to rent the property is identical to the past use. 5. Granting of the Special Use Permit does not create traffic congestion. CONTINGENCIES 1. The property owner will complete the license process within 30 days of City Council approval of the Special Use Permit at which time the property shall be in full compliance with the St. Joseph Code of Ordinances, including the maximum density. 2. The property owner will manage the property in compliance with the St. Joseph Code of Ordinances. The motion was seconded by Hausmann and passed unanimously by those present. Extension of Interim Use Permit — Cory Ehlert, 29 MN St E: Weyrens stated that in 2010 the Planning Commission recommended and the City Council issued an Interim Use Permit to Cory Ehlert to allow a non -owner occupied rental in the General Business district without a commercial use at 29 MN St. E. The Interim Use Permit was issued for a term of three years, at which time the Planning Commission would review the economic climate to determine if the commercial component would have to be implemented in order to secure a rental license. If the area is not ready for commercial development, the property owner, Cory Ehlert, could request a one -time extension allow for an additional three years that would be reviewed annually. Weyrens stated that the process for reviewing an expiring Interim Use is the same process used for all Interim Use Permits that are reviewed annually. Therefore, property violations have been reviewed and it was noted that Ehlert charged for over occupying the rental property in 2011 and was cited administratively. Again in 2012 Ehlert was over occupying the home and was not cited this time as he did not have a lease with the four person and stated he was unaware of the additional person. The property was brought into compliance. Cory Ehlert spoke on his own behalf providing a brief history of the property. He stated that he purchased the home in 2010 when it was going through the foreclosure process and has completed significant work to remove the blight and provide quality housing. Prior to his purchasing the home the property was licensed for eight, but due to a lapse in the rental license the grandfather status was lost and the maximum number of tenants is three. He stated that he worked with the city's building inspector to separate the two floors basically by fire separation, placing a two -hour fire wall between the commercial space on the main floor and residential July 1, 2013 Page 4 of 4 space on the second floor. He rebuilt the second stairwell down to the kitchen area. The kitchen area on the main floor is in the back of the house with a private staircase up to the bedrooms, full bath, and living room upstairs. The front two- thirds of the building would be commercial space. Mike Dietz did the conversion of the old Linneman building, continuing the residential above with the laundry mat on the main floor. Ehlert's house at 111 College Avenue follows that mixed -used residential building as well. There is not the demand for the commercial space and a lot of commercial space is vacant, so he would like to use it as a continued residential rental. Schultz, reminded Ehlert that the Interim Use Permit only allows for a one -time extension and encouraged him to start thinking about a transition plan. He questioned Ehelrt as to whether or not he has been in contact with the EDA to assist with finding commercial opportunities, to which Ehlert state he had not. Ehelrt stated that he has considered the property as residential and he questions the need for commercial office space. The house is one of the older houses in the community and he has worked to preserve the woodwork and casings. Schultz questioned how many tenants will be residing in the home if the use is extended. Ehlert stated that he is aware that the maximum density is three and he will have three students from SJU residing in the home for the 2013 -2014 rental license period. Schultz questioned if a commercial opportunity presented itself would the property be available or does he have long term leases. Ehlert responded that he has twelve months leases, but has some down time in the summer. Ehlert stated that he is not opposed to the property having a commercial component, but has not had an opportunity thus far. When questioned the size of the commercial space, Ehelrt responded approximately 420 square feet. Rieke and Dullinger reiterated that the property is intended for commercial with residential being the secondary use, not vice versa. Schultz made a motion recommending the City Council extend the Interim Use Permit for 29 MN St E, allowing the property to operate as a rental unity without the commercial component for an additional three years, expiring on August 14, 2016. The Interim Use permit is not renewable. The motion was seconded by Hausmann and passed unanimously by those present. Ordinance Amendments: Weyrens stated that staff continues to work on the Ordinance amendments, trying to identify and correct Inconsistencies between Ordinances. It is anticipated that the proposed amendments will be ready for Planning Commission review in August. Council Liaison Report: Mayor Schultz reported on lively discussion of the Joint Township City Planning Board Meeting to discuss the Orderly Annexation Agreement. The city anticipated development to occur on the east/south side of Interstate 94, with future demand on the opposite side. The current Orderly Annexation Agreement extends to 1 -94, potentially limiting development. The Township has expressed concern that before property outside of the OA area is considered for development the property within the OA should be developed. Additionally the Township sees an opportunity to expand their tax base and does not want the OA to prohibit their efforts. Schultz stated that the City and Township Planning Commission will be meeting in joint session on Tuesday, July 16, 2013 at 7:30 PM to continue the discussion. The discussion will include: issues behind the Joint Planning Agreement, Orderly Annexation Agreement, how the process works, who votes, who doesn't, and primarily talking about boundaries. Adjourn: Dullinger made a motion to adjourn at 7:50; seconded by Hausmann and passed unanimously b those present. ��' li< J dy eyrens / dmi istrator