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5.2. SR 07-19-2010REQUEST FOR ACTION ver TO ITEM NUMBER Ci Council 5.2 AGENDA SECTION MEETING DATE PREPARED BY Communi Develo ment ul 19, 2010 erem Barnhart, Plannin Mana er ITEM DESCRIPTION REVIEWED By Request by Elk River Sales & Leasing for Conditional Use Permit to Allow Truck Sales, Case No. CU 10-15 -Public REVIEWED BY Hearing /ACTION REQUESTED Staff and the Planning Commission recommend approval of Conditional Use Permit 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 The Conditional Use Permit, if approved, would allow Elk River Sales and Leasing to obtain a state dealers license, allowing them to buy equipment sales tax free while leasing it to the internal businesses. The dealer's license is not intended for open market sales. There are no changes proposed to the site or the building. PLANNING COMMISSION The Planning Commission had no concerns. PUBLIC COMMENT No comments were received. FINANCIAL IMPACT None ATTACHMENTS ^ Staff report to the Planning Commission dated July 13, 2010. ACtlOfl Motion by Second by Vote Follow Up C:\Documents and Settings\XPMUser\Local Settings\Temporary Internet Files\OLK6G\CU 10-15 Morrell SR to CC 7-19-10.doc L~~~ , REQUEST FOR ACTION TO ITEM NUMBER Planning Commission 5.2. AGENDA SECTION MEETING DATE PREPARED BY Planning Items July 13, 2010 Jeremy Barnhart, Planning Mana er 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 Permit allowing for the acquisition of an auto dealers license at 10752 1715L 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 Oversize, 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. Operationally, 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. N:\Departments\ConununityDevelopment\Planning\Case Files\CUP\CU 10-15 ER Sales and Leasing (Morell)\CU 10-15 Morrell SRto PC 7-12- 10.doc 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 17151 Avenue ATTACHMENTS ^ Location Map ^ Applicant's narrative, dated ACtIOn Motion by Second by Vote Follow Up N:\Departments\CommunityDevelopment\Planning\Case Files\CUP\CU 10-15 ER Sales and Leasing (Morell)\CU 10-15 Morrell SRto PC 7-12- l0.doc Wd ST 9bZ OTOZ/bT/9'6Mp'deW uoi;e~o~\(IIa~oW) 6uisea~ pue sales a3 ST-OT fly\dfl~\sa~id ase~\6uiuue~d\;uawdo~ana4 ~(;iunwwo~\s;uawuedap\:N t ~..~ ~~ ~ ~ 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 Describtion 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 B: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 cuiTent 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 c~mnanies in the area.. STATE OF MINNESOTA COUNTY OF SHERBURNE CITY OF ELK RIVER In the matter of: Elk River Sales and Leasing CONDITIONAL USE PROCEEDINGS Request: Conditional Use Permit to allow truck and equipment sales Case No. CU 10-15 Terry Morrell, Owner ORDER GRANTING CONDITIONAL USE The above entitled matter came to be heard before the City Council on the 19~" day of July, 2010, on a petition for a Conditional Use pursuant to the City of Elk River Zoning Ordinance, for the following described property: Lot 1, Block 1, Larry Morrell Addition IT IS ORDERED that a Conditional Use be granted as upon the following conditions or reasons: 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. CITY OF ELK RIVER CITY COUNCIL DATED this 19th day of July, 2010. STATE OF MINNESOTA ) COUNTY OF SHERBURNE) ss. OFFICE OF CITY PLANNING AND ZONING ELK RIVER CITY OF ELK RIVER I, Jeremy Barnhart, Planning Manager for the City of Elk River with and in for said City, do hereby certify that I have compared the foregoing copy and Order granting a Conditional Use with the original record thereof preserved in my office, and have found the same to be a true transcript of the whole thereof. If the proposed work described in a conditional use permit has not been substantially completed within two (2) years after its date of issuance, the permit shall expire and become void except that the Council may, following recommendations of the Planning Commission, extend the permit for an additional period determined by the council on the receipt of a request for a permit extension prior to its expiration. A Conditional Use permit authorizes only the use specified in the permit and shall expire if, for any reason, the authorized use ceases for more than six (6) months. Jeremy Barnhart Planning Manager IN TESTIMONY WHEREOF, Minnesota, in the County of Sherburne, 2010. I have hereunto subscribed my hand at Elk River, in the City of Elk River, on the day of DRAFTED BY: City of Elk River Elk River, Minnesota 55330 Signed before me a NOTARY PUBLIC this day of 2009. C:\Documents and Settings\XPMUser\Local Settings\Temporsry Internet Files\OLK66\Recording doc.doc