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8.6. SR 01-21-1997'ty of ITEM 8.6. MEMORANDUM iver TO: FROM: Mayor and City Council Scott Harlicke~'/ DATE: January 21, 1997 SUBJECT: City of Elk River Request for Ordinance Amendment, Public Hearing Case No. OA 96-16 Request Consider a request by the city of Elk River to amend the zoning code to make hotels/motels and class I restaurants a conditional use in the C3 (Highway Commercial) district. Attachments · Ordinance No. 97- Overview Existing Conditions Currently hotels/motels and class I restaurants (sit down) are permitted uses in the C3(Highway Commercial) and C l(Central Commercial) districts and only require staff review prior to the issuance of a building permit. In the C4 (Neighborhood Commercial) district, class I restaurants are a conditional use, and in the BP(Business Park) district, hotels/motels are a conditional use and class I restaurants are a permitted use. With these uses there are often issues and off site impacts that, without input from the Planning Commission, City Council and the public, may not have the chance to be fully addressed. Each of these groups would have an opportunity for review and comment during the process of applying for a conditional use permit. Conditional Use Process A conditional use is an allowed use which is generally compatible with the zone in which it is allowed. However, because of some special characteristics inherent to its operation or installation it may not be appropriate for every location within that zone. The process of applying for a conditional use permit allows for the opportunity to place conditions on the approval which 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425 Memo to the Mayor and City Council Page 2 January 21, 1997 address the adverse impacts that were identified during the review process. There is also an opportunity for affected and other interested parties to comment on the project. Issues Establishing a use as a conditional use is not intended to set up barriers for property owners as they plan the development of their property or expand existing uses. Rather, the conditional use permit is intended to allow input from the City Council, Planning Commission and the public prior to the issuance of a building permit. Through this input performance standards affecting issues associated with hotel/motels and class I restaurants can be enhanced if needed. Issues which may be associated with hotel/motels and class I restaurants include traffic, screening, noise, hours of operation, lighting, height of buildings and odors. These issues can impact nearby residential areas. A recent illustration of how a class I restaurant can impact a residential neighborhood is the Perkins Restaurant project at Highway 169 and Dodge. Even though the restaurant is a permitted use, the residences on the other side of Dodge were directly impacted by the restaurant. Traffic, lighting and screening were among the issues that needed to be addressed and, because this project was part of a PUD and was reviewed as a conditional use permit, the issues were addressed. When reviewing an application of this nature at an administrative level, there is no clear avenue for public participation. Survey While each community's situation is unique, it is often helpful to find out how other cities deal with a specific type of use. Six cities were surveyed as to how they review hotels/motels and class I restaurants; the following table is a summary of results: City Lakeville Savage HotelfMotel Permitted (B3) Auto Oriented District (B4) General Business District (BDC) Central Business District (C2) Planned Community Center (C3) General Business District (C4) Downtown District (C5) Rural Business District Conditional Use Permit s:\planningXscottXoa9616cc.doc Memo to the Mayor and City Council January 21, 1997 Page 3 Champlin Brooklyn Park Woodbury Plymouth City Lakeville Savage Champlin Brooklyn Park Woodbury Plymouth (C2) General Business District (CH) Highway Business District (B2) Retail Business District (FD1) Freeway District (C3) Highway Commercial District (B3) General Business District (B1) Office Park District (B2) General Business District (FD2) Freeway Impact District (FD3) Freeway General Impact District Class I Restaurants Permitted B3, B4, CBDC C2, C3, C4, C5 B2, B3 Conditional Use Permit (C1) Office Business District, C2, CH (B1) Central Business B1, B2, (B3) Shopping Center FD1, FD3 (C2) Central Business The cities of Brooklyn Park and Woodbury most closely resemble Elk River in how they review hotels/motels and class I restaurants. Those cities have them as permitted uses in some commercial zones and conditional uses in some commercial zones. Planning Commission meeting Public Hearing At the November 26,1996 Planning Commission meeting Paul Bell, owner of Bridgemans Restaurant, spoke out against the proposed amendment. He felt it placed and undue burden on business owners and they should not be penalized because some highway commercial districts are adjacent to residential areas. s:XplanningXscottkoa9616cc.doc Memo to the Mayor and City Council January 21, 1997 Other Commercial Districts Page 4 The fact these uses are also permitted uses in the C1 (Central Commercial) district was also brought up. In the C 1 district, the surrounding properties are zoned either C2 (Office) district or industrial with the exception of 4 small lots on Jackson Avenue which are adjacent to a R2(Two Family Residential) district; therefore, compatibility with adjacent residential zones is less of an issue. On-Sale Liquor Some class I restaurants also sell liquor. Under the current regulations, a class I restaurant requires administrative staff review as a permitted use prior to the issuance of a building permit. However, if a class I restaurant sells liquor, such as Chi Chi's or Applebee's, the project will be reviewed as conditional use permit because on-sale liquor is currently a conditional use. Recommendation Planning Commission Commissioner Minton made a motion to establish hotels/motels and class I restaurants as conditional uses in the C3(Highway Commercial) district and in the Cl(Central Commercial) district. The motion failed by a vote of 4 to 3. The Planning Commission recommended denial of the ordinance amendment to establish hotels/motel and class I restaurants as a conditional use in the C3 and C1 districts. Staff The attached ordinance reflects staffs recommendation that hotels/motels and class I restaurants (sit down restaurants) be allowed as a conditional use in the C3 (Highway Commercial) district. Since compatibility with residential zones is less of an issue in the C1 (Central Commercial) district than it is in the C3 district and commercial development downtown will be buffered from residential zones by office commercial zones, issues relating to impacts on nearby residences are reduced. It is staffs belief that projects that proposed restaurants and hotels/motels will receive a thorough review based on current ordinance requirements whether it goes through administrative review as a site plan or review as a conditional use permit. However, the benefits of having hotels/motels and s:\planningkscott\oa9616cc.doc Memo to the Mayor and City Council January 21, 1997 class I restaurants reviewed as a conditional use permit include the following: Page 5 · It provides an opportunity for input from the City Council, Planning Commission and the public prior to the issuance of a building permit; · It allows an opportunity for enhancing performance standards affecting such issues as traffic, landscaping, signage, buffer zones, lighting, noise, litter and odors if needed. s:XplanningXscottXoa9616cc.doc ORDINANCE 96- CITY OF ELK RIVER AN ORDINANCE AMENDING SECTION 900.12 OF THE CITY OF ELK RIVER CODES OF ORDINANCE RELATING TO HOTELS/MOTELS AND RESTAURANTS (CLASS I) IN THE C3 (HIGHWAY COMMERCIAL) DISTRICT CASE NO. OA 96-16 The City Council of the City of Elk River does hereby ordain as follows: Section 1. Section 900.12(12)of the City of Elk River Code of Ordinance titled, "Permitted, Accessory, and Conditional Uses" is hereby amended to delete Hotels/motels and Restaurants (Class I) as permitted uses. Section 2. Section 900.12(12) of the City of Elk River Code of Ordinance titled, "Permitted, Accessory, and Conditional Uses" is hereby amended by adding Hotels/motels and Restaurants (Class I) as conditional uses. Section 3. That this Ordinance shall take effect and be in full force from and after the date of its publication. Passed and adopted this City of Elk River. __ day of ,1996, by the City Council of the Henry A. Duitsman, Mayor ATTEST: Sandra A. Thackeray, City Clerk