5.2. PCSR 07-13-2010REQUEST FOR ACTION
TO
ITEM NUMBER
Planning Commission 5.2.
AGENDA SECTION MEETING DATE PREPARED BY
Planning Items July 13, 2010 Jeremy Barnhart, Planning Manager
ITEM DESCRIPTION REVIEWED By
Request by Elk River Sales & Leasing for Conditional Use
Permit to allow truck sales, Public Hearing -Case No. CU 10-15 REVIEWED BY
ACTION REQUESTED
Staff recommends approval of Conditional Use Pernut allowing for the acquisition of an auto dealers
license at 10752 171St Avenue, as described in the applicants narrative dated May 13, 2010.
1. Vehicles and equipment acquired as part of the auto dealers license are intended for
Morrell trucking and its subsidiaries use only.
2. As a Conditional Use Permit is not a Building Permit, the applicant shall apply for all
required permits.
BACKGROUND/DISCUSSION
Morrell Trucking received a Conditional Use Permit, rezoning, and preliminary plat in 1997 (case
numbers ZC 97-2, P 97-11, and CU 97-12). Those approvals were for the operation of a truck transfer
facility, which is currently in operation.
The truck transfer business includes several subsidiarybusinesses. These subsidiarybusinesses include
Elk River Sales and Leasing (proposed to receive the Auto dealer's license), Morrell Enterprises, and
Morrell C-versize, Morrell Transfer, Morrell Towing, and Morrell and Morrell.
Elk River Sales and Leasing desires an auto dealer's license to allow them to purchase the vehicles as a
dealer, and lease the vehicles to the other business units within the organization. C-perationally, this
represents zero change from current practice. Financially, the dealers license changes their sales tax
structure. Currently, they pay sales tax on the purchase of the equipments, and sales tax on the lease of
the equipment to the differing business units. With a dealer license, theywould avoid paying sales tax on
the purchase. Sales tax on the leases would continue.
No changes are proposed to the layout or configuration of the site.
While there is no operational or physical change to the original Conditional Use Permit, because the CUP
was silent on an auto dealership component, staff determined that a Conditional Use permit was
necessary to add the auto dealership license.
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FOCUSED AREA STUDY IMPACT
The proposal is not inconsistent with the Focused Area Study recently approved, even if land use and
design standards were implemented, because there is not physical change to the exterior of the building,
and the request is largely a continuation of the existing operation.
Staff supports the request.
FINANCIAL IMPACT
None
General Information
----_ _-_
Applicant Elk River Sales and Leasing (Terry Morrell)
Requested Action Conditional Use Permit amendment approval
60 Day Rule The City must take action by August 9, 2010
Location 10752 1715` Avenue
ATTACHMENTS
^ Location Map
^ Applicant's narrative, dated
ACtIOn Motion by
Follow Up
Second by Vote
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MORRELL TRANSFER, INC. MORRELL ENTERPRISES LP • MORRELL & MORRELL LP MORRELL BROKERAGE, INC.
10752 171ST AVENUE ELK RIVER, MN 55330 (763) 441-2011 (763) 441-4527
May 13, 2010
To: The City of Elk River
Description of Proiect Narrative
Elk River Sales and Leasing is a company that already exists with pieces of
equipment. The company has sufficient interest of obtaining a dealer license for internal
uses. The main reason the company is pursuing this is to avoid paying double sales tax on
purchased equipment that is leased on a monthly basis to Morrell Enterprises and Morrell
Oversize. The company is taxed at time of purchase and on a monthly basis for payments
from the lessors. Elk River Sales and Leasing leases a property in southeastern Elk River
off of Hwy 10. The property is shared between the following companies: Morrell
Enterprises, Morrell Oversize, Morrell Transfer, Morrell Towing, and Morrell & Morrell.
Parking is what the current site approved for, and we are continuing with that same
application. There is already an abundance of space for existing cars and new cars with
the added business. The hours of operation for the Dealership would be 8:OOam-4:30pm.
There is only one employee, Terry Morrell. Signage would only be installed if it were
required by the state. There is no intent of having signs if there is no requirement. The
storage for the equipment that is being leased is all outside and within the current
property. There is no intent of expansion of current property or obtaining other properties
for storage. There is no proposed screening at this time of the property. The amount of
equipment will vary. Tractors and trailers are the main pieces of equipment that are being
stored.
This is a suggestion from our tax advisor and is consistent with the transportation
companies in the area.