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HomeMy WebLinkAbout[05] Ehlert IUP Expired 5 Planning Commission Agenda Item MEETING DATE: July 11, 2016 AGENDA ITEM: Cory Ehlert, 29 MN St E Request to extend Interim Use Permit (IUP) SUBMITTED BY: Community Development PREVIOUS PLANNING COMMISSION ACTION: 2010 the Planning Commission issued an IUP allowing a non-owner occupied rental in the B1 General Business District without a commercial component as required. The findings indicated that the area was not ready for development so a three year IUP was issued by the City Council upon recommendation by the Planning Commission. July 1, 2013 the Planning Commission considered the request to extend the IUP issued in 2010 an additional three years, as allowed by the B1 Zoning District. At this time the Planning Commission indicated that the IUP would expire in 2016 and the property would need to meet the requirements of the Ordinance. BACKGROUND INFORMATION: The City has a number of IUP’s that are managed by Administration. Each IUP is tracked for compliance with Ordinances and expiration. During the review this year Cory Ehlert was sent notification that the IUP has expired and cannot be renewed. Rental is allowed in the B1 Zoning District; however at least 50% of the interior must be used for permitted uses. The following is an extract of the Ordinance illustrating the provision. In 2011 the property was renovated to provide a kitchen on the main floor for the rental unit (see following site plan). Ehlert is requesting the Planning Commission consider extending the IUP as he has indicated that he has not had interest in office space. Any extension would require a new public hearing ATTACHMENTS: Request for Planning Commission Action Letter – IUP Expired Extract of Minutes – Illustration Sunset of IUP Extract of Minutes – Issuing IUP 2010 Findings issuing IUP Site Plan of Main level REQUESTED PLANNING COMMISSION ACTION: Provide direction City Offices Memo To: Cory Ehlert From: Mary Generous Date: April 14, 2016 Re: Interim Use Permit to Expire This letter serves to notify you of the expiration of the Interim Use Permit issued to allow the operation of a rental property at 29 Minnesota St E. The IUP expires August 14, 2016 and is not renewable. (See enclosed copy of excerpt from the Planning Commission minutes of July 1, 2013.) Operation of a rental property at this address after the date of expiration is in violation of St. Joseph Code of Ordinances and subject to fine. If there are any questions, or you are in need of additional information, please feel free to contact our offices at 363.7201. Extract of Minutes – July 1, 2013 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 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. Extract of Minutes – November 1, 2010 Public Hearing – Interim Use Permit – 29 Minnesota Street: Kalinowski opened the public hearing. Weyrens stated that the purpose of the hearing is to consider an Interim Use Permit to allow a non-owner occupied rental at 29 Minnesota Street E. The property is legally described as Lot 14 Block 10, Townsite of St. Joseph. St. Joseph Code of Ordinances 52.31 Subd. 13: Interim Use Permits for Rental Units. Residential units in areas that have been rezoned to commercial from residential shall be allowed an Interim Use Permit as a rental unit for a specific period of time. The maximum density for rental units under the Interim Use Permit shall be limited to the density which is allowed in the R-1, Single Family Residential District. th The request was submitted by Cory Ehlert, 427 12 Avenue SE. Weyrens stated that she received a letter from Jon Petters stating that he is not opposed to the proposed use of the neighboring property and encouraged the Planning Commission to grant the request. The hearing was closed as there was no one present wishing to speak. Cory Ehlert approached the Commissioners and gave a brief summary of what he is requesting and some background on the property. Ehlert explained that the property is currently in foreclosure and is in tough shape. The pipes froze last winter which resulted in some broken pipes. He stated that he will be putting in some new windows and the heating system will need to be replaced. Ehlert advised the Commissioners that he anticipates that he will convert this to a 50/50 mixed density use with commercial on the lower level and residential on the upper level. This house has eight bedrooms and he stated he will be removing two on the lower level. As a result, he is asking for permission to have four renters rather than three as allowed by Ordinance. Schultz questioned if there are any issues relating to parking which Ehlert responded that should be no problems. Deutz asked Weyrens to brief them on this property. Weyrens advised the Commissioners that this property is currently zoned B1. It was previously zoned as R1 and this is the first time that this property did not continue their rental license. Deutz clarified that Ehlert was requesting to change the allowed number of renters from three to four. Ehlert stated that he would withdraw that request at this time. Deutz questioned whether or not this house could be considered two units if a separate stairway were to be added to accommodate the upper level. Weyrens stated that a single house cannot contain two separate residential units. Deutz made a motion to authorize the Planning Commission Chair and Administrator to execute the Resolution recommending the Council issue an Interim Use Permit to Cory Ehlert to allow a rental license for 29 Minnesota Street E. The motion was seconded by Orcutt and passed unanimously. City of St. Joseph IN RE: Application of Cory Ehlert Interim Use Permit at 29 East MN Street FINDINGS OF FACT AND DECISION Rental in B1 Zoning District — Maximum Density as defined by St. Joseph Code of Ordinances 52.04.31.a FINDINGS OF FACT On November 1, 2010 the St. Joseph Planning Commission conducted a public hearing to consider the application of Cory Ehlert for an Interim Use Permit to allow an owner occupied rental unit at 29 Minnesota St E. The matter was duly published and notice was provided to property owners within 350 feet of the above referenced property. The Planning Commission hereby finds the following facts as it relates to the request of Cory Ehlert for an Interim Use Permit to secure a rental license. 1. In response to citizen concern in 2000, the City reviewed the Zoning Ordinance as it relates to rental property and zoning classifications. The purpose of the review was to find a manner in which to effectively blend housing types within the R1 Zoning District. As a result of the review the City adopted an amendment to Ordinance 52.27 allowing rental units in the R1 Zoning District only if the property owner resides at the property. The Ordinance was adopted by the City Council on September 21, 2000. 2. In 2007 the City again reviewed the rental provisions in the Single Family residential zoning district. While the Ordinance was amended in 2000, the blending of rental and owner occupied property appeared to need re -defining. On September 20, 2007 the City Council imposed a moratorium on rental housing for 90 days to give the Planning Commission an opportunity to review the owner occupied provision in the RI Single Family Zoning District. 3. In 2007 the City also amended the B1 and B2 Zoning Districts to allow for rental licenses without the provision of owner occupied as means of transitioning the property. Property in B1 and B2 Zoning Districts that are not ready for conversion to business and were listed for sale had problems closing as if the property was destroyed it could not be re -built as a residential unit. The amendment allows the residential use to continue until a time the surrounding property is converted to business. 4. The provision to allow Interim Use Permit for transitional purposes limits the duration of the Interim Use Permit to three years, renewable for an additional three. If after that time the neighborhood is still not ready for conversion, the Interim Use Permit must be re-applied for with a new public hearing. S. St. Joseph Ordinance 52.04.31.a defines a family as A family is any number of persons living together in a room or rooms comprised of a single housekeeping unit and related by blood, marriage, adoption, or any unrelated person who resides therein as though a member of the family. Any group of three persons not so related but inhabiting a single house shall, for the purposes of this Ordinance, be considered to constitute one family. 6. On October 12, 2010 the City received an application for Interim Use Permit for the property located at 29 Minnesota Street East. The maximum density allowed y Ordinance is three unrelated persons. 4:5 7. The property at 29 Minnesota Street East in the past was a licensed rental unit and due to the lapse of license, the property lost the grandfather status allowing a rental with occupancy of 8 unrelated persons. 8. While the property is currently owned by Phoenix Asset Management, LLC, Ehlert has a purchase agreement for the property. In the B1 Zoning District proof of ownership is allows the applicant to use a purchase agreement as proof. 9. Upon review of the application it was determined complete and met the criteria for issuance. DECISION AND CONCLUSION Based on the Finding of Fact, the St. Joseph Planning Commission recommends approval of the Interim Use Permit with the following conditions: 1. St. Joseph Code of Ordinances 52.31 Subd. 13 provide property owners in a B1 General Business Zoning district to seek an Interim Use Permit to allow non -owner occupied rental units until the property is ready for transition to the business use. Said provisions allow the Planning Commission to place a termination date on the Interim Use Permit and required annual review of the same. 2. Granting of an Interim Use Permit is a privilege that is granted by the City and reviewed annually for Ordinance Compliance and are therefore issued with contingencies. The Interim Use is being recommended with the following conditions: a. The property owner will complete the license process with 30 days of Council approval of the Interim Use Permit at which time the property shall be in full compliance with the St. Joseph Code of Ordinances, including the maximum density. b. The property owner will manage the property in compliance with the St. Joseph Code of Ordinances. c. The Interim Use Permit shall expire when the majority of the property surrounding is redeveloped as commercial or within three years of August 14, 2013 d. If the area surrounding 29 Minnesota Street East is not ready for commercial development, Cory Ehlert may apply for a three year extension which will be subject to items 1 and 2 above. Based on the foregoing Finding of Fact and Decision and Conclusion of the St. Joseph Planning Commission, the request for Interim Use is forwarded to the City Council as a recommendation for approval. Passed by Resolution of the St. Joseph Planning Commission on November 2, 2010. CITY OF ST. JOSEPH B L/- Y Ka n Kalinowski, Jr 4:6 This page intentionally left blank