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6.3. SR 01-18-2011REQUEST FOR ACTION TO ITEM NUMBER Ci Council 6.3. AGENDA SECTION MEETING DATE PREPARED BY Communi Develo ment anua 18, 2011 Tina Allard, Ci Clerk ITEM DESCRIPTION REVIEWED B~/ Direction on Whether to Initiate Revocation of Liquor Licenses Lori ohnson, Ci Administrator for Wapiti Park Campground, Inc. REVIEWED BY Peter Beck, Ci Attorne ACTION REQUESTED Council direction on whether staff should move forward with the revocation process of the liquor licenses for Wapiti Park Campground, Inc. BACKGROUND/DISCUSSION On August 2, 2010, the City Council approved liquor licenses to Wapiti Park Campground, Inc. contingent upon them complying with the conditions of Interim Use Permit, Case No. CU 10-16. The conditions were required to be met by January 1, 2011 or the liquor licenses may be revoked. The table below notes the type of license Wapiti holds along with the expiration dates for each of them. License Type Expiration 3.2 Percent Malt On Sale une 30, 2011 3.2. Percent Malt Off Sale une 30, 2011 Consumption and Display March 31, 2011 The Council approved the licenses contingent upon the following conditions of the interim use permit being met. A. A verifiable plan has been approved by City Council that will ensure permanent residents will not live at the recreational camping facility. B. An inspection has verified that the onsite septic system is designed to be functional year round and remains fully functional. C. Staff has approved a manure management plan, in compliance with Section 10-9 of Ciry Code. D. Staff has approved a debris management plan. E. The applicant has provided evidence that it is in compliance with all outstanding violations as identified by the Department of Health inspector. F. All structures and vehicles other than recreational camping vehicles as defined by Minnesota Statutes section 327.14, subdivision 7 have been removed. G. The applicant is in full compliance with the nine conditions of the 1984 conditional use permit, as follows: N:\Pu6lic Bodies\Ciry Council\Council RCA\Licensing\Liquor\2011\Wapiti Direct from CC.doc 1. That a private road agreement be entered into between Mr. White and the Ciry of Elk River for access for the property; 2. That the number of campsites within the property be established at 109, with 20 tent sites and that no additional campsites be permitted; 3. That the hours of the campground operation be from 8 am to 11 pm; 4. That only minor maintenance and repair of recreational vehicles which is restricted to customers or campers on the site be permitted at the Wapiti facility; 5. That the store and restaurant on the existing site be used primarily for individuals utilizing the campground facility and that the store and restaurant not be expanded; 6. That the permit be reviewed every two years; 7. That the horses housed at the site be kept in such a manner that they do not provide a nuisance to any neighboring property as defined in the City's nuisance ordinance; 8. That the provisions of the Minnesota Department of Health rules and regulations pertaining to recreational camping areas and referred to as MDH 187, and the provisions of Minnesota Statute 327.10 through 327.28 pertaining to recreational camping areas and recreational camping vehicles shall apply and be conditions within the City's conditional use permit; and 9. That the wheels must remain on vehicles parked in campground and that there be no permanent units for rental purposes. Council should provide staff with direction regarding whether to move forward with revoking the liquor licenses if the Council adopts the proposed resolution regarding the interim use permit for the Wapiti Park Campground store building (discussed under the previous agenda item). If revocation proceedings are implemented, staff will need to follow through with due process notice requirements and prepare a resolution for revocation of the licenses. An alternative course of action would be to advise Wapiti Park Campground that the licenses may not be renewed if the conditions have not been complied with and/or the store building has not become a lawful use by the time of renewal. ATTACHMENTS ^ August 2, 2010 Minutes Action Motion by Second by Vote Follow Up N:\PubGc Bodies\Ciry Council\Council RCA\Licensing\Liquor\2011 \Wapiti Direct from CC.doc City Council Minutes August 2, 2010 Ms. Johnson stated the DNR will verify process in order to draw down the lake. Page 3 signatures. Ms. Johnsy~n discussed the required MOVED BY COUNCILMEMBER ZER AS AN SECONDED BY COUNCILMEMBER MOTIN TO SET A PUB C HEARING DATE OF TUESDAY, SEPTEMBER 7, 2010, FORT E RAW DOWN OF LAKE ORONO IN ORDER TO REDUCE THE CURLY L F POND WEED. MOTION CARRIED 5-0. Councilmember Motin stated he would lil~more projects. 5.1. Bailey Point Ms. Johnson noted this i 5.2. Request by Wapiti Park Public Hearin requested to be delayed as in her staff report. Tricia Joy Herom, 510 Canterbury Lane, Moses Lake Washington -Stated she has been camping at Wapiti for 12 months. She read a letter to the Council stating she felt the city was trying to force the campground out of business. Adam Kaatz, 1907 E. Wayzata Blvd. -Representing Wapiti stated he sent an email late today, which he proceeded to summarize. He noted there have been no adverse comments against Wapiti. Mr. Kaatz stated the conditions suggested in the Staff Report are unfair, pre-empted by state law or take away from Wapiti's right to a legal non-conforming use. He stated only one condition (that the approval is valid for 10 years) has anything to with the building. He stated Conditions 2-4 have nothing to do with the building and are governed by statutes and the MN. Department of Health. He stated having the business close down for two months takes away from their right as a legal non-conforming use. Mr. Kaatz stated the condition regarding Wapiti compliance with all nine conditions of their 1984 permit is not legal with respect to issuing a conditional use permit for a legal non- conforming use. He requested the Council approve the permit for Wapiti subject only to the conditions that were outlined in the 2000 permit. He also requested the permit be valid for 30 years due to the structure of the building being to specifications of 40-50 years. Katryna Kish, 518 113th Avenue, Coon Rapids -Stated she is opposed to Condition # 5 regarding the two month closure of Wapiti. Mark Olson, 18788 Yankton Street -Stated he is opposed to the closure of Wapiti. He stated some people need to live in trailers because it's all they can afford and the city should help Wapiti. He stated some parks ask campers to move from one spot to another but are never asked to shut down. provided for both these Mr. Barnhart presented the staff report noting staff and the Planning Commission's recommendation. City Council Minutes August 2, 2010 Page 4 Alisha Kish, 518 113th Avenue, Coon Rapids -Stated she has camped at Wapiti for 12 years. She stated her family camps at Wapiti and her kids now go to the Elk River School District. She stated she had to live at Wapiti for six months during hard times. She stated she is opposed to closing Wapiti during the winter months. AngeLHardy -Stated her driver's license has a Wapiti Park Campground address because she drives a school bus and delivers pizza's and has to have an address on her license. She stated she is opposed to closing Wapiti down. Joe Gordon, 2112 North Lake, Fort Worth, Texas -Stated he stays at Wapiti for 5-6 months at a time. He stated he has Wapiti as his address because the State of Minnesota requires him to have a license after being in the State for more than 30 days. He stated he is opposed to closing Wapiti down for any length of time. Michael Clopping, 18540 Troy Street -Stated he is opposed to closing Wapiti. He stated concerns with the maintenance of his road if Wapiti is closed down as they are currently keeping the road maintained. Kim Satavich 518 113th Avenue, Coon Rapids -Stated she has never had any safety concerns for her children at Wapiti. She stated she is opposed to shutting down Wapiti. Chris Kish, 518 113th Avenue, Coon Rapids -Stated he is opposed to closing down Wapiti during the winter months. Mayor Klinzing closed the public hearing. Attorney Beck explained the state law defined terms for recreational camping area and recreational camping vehicles. Mr. Barnhart stated it isn't the goal of staff to shut down Wapiti. He indicated that staff, in working with the applicant, didn't come to an agreement on how to measure that people staying at Wapiti are only there on a temporary basis. He noted this has been a consistent issue and stated the two month closure is the easiest option for staff to monitor compliance. Council agreed they had no issue allowing year-round camping but there has to be other options for making sure permanent residents are not living at Wapiti because it is a recreational camping facility. Council agreed that the outstanding violations need to be taken care of and expressed safety and welfare concerns. Attorney Beck noted there are many areas in which the city enforces state regulations. He stated the city has the authority to regulate a licensed campground in the interest of public health, safety, and welfare. Councilmember Gumphrey questioned if there were any structures that needed to be removed. Mr. Barnhart stated several structures have exposed plumbing and additions attached to campers. Mayor Klinzing stated many of the people speaking tonight are describing their residence and not a campground. She stated this is an issue because Wapiti is a campground and not a mobile home park. She noted state law says recreational camping facilities can't be City Counci11~1inutes August 2, 2010 Page 5 permanent residences. She discussed the police report with the 440 calls out to Wapiti and noted some examples such as a meth lab, numerous assaults, a campfire injury, raw sewage leaks, exploding camper, and a newborn baby staying with their parent in a tent during the winter. She expressed safety and welfare concerns due to these police calls. She stated she would like to see Wapiti come into compliance and the city needs to ensure that there aren't permanent residents staying at the campground. Attorney Beck stated there are other options but they may require the city getting involved more in Wapiti's business than both sides would like. He suggested Wapiti adopt rules governing length of stay and submit a plan to the city with evidence of compliance on a periodic basis. He stated Wapiti has a history ofnon-compliance over many years. He stated Wapiti hasn't complied with the conditions imposed for the last 20 years so another solution should be worked out. He stated staff is willing to work with the applicant and encourages Wapiti to come forward with a plan to address the permanent residency issue. Councilmember Motion questioned if a condition should be added that requires a plan be submitted to the city demonstrating compliance with non-residency at a recreational camping facility. Attorney Beck stated the best solution would be for Council to review and approve a plan as he felt acceptance at staff level would be too much delegation. He suggested giving the applicant an opportunity to bring a plan to Council. He noted this was suggested to the applicant at staff level. Mr. Beck further noted the city is not trying to put Wapiti out of business but have been trying to work with the applicant to ensure state law and interim use permit compliance. He expressed concerns with vehicles not complying with building codes and noted these codes are designed to protect people from public health, safety, and welfare issues. Councilmember Gumphrey suggested adding a condition that a plan must be in place by January 1, 2011, so that the interim use permit can be approved tonight to accommodate Wapiti. Councilmember Motin further suggested a condition stating the permit shall terminate if there is not an agreeable plan in place that verifies that the property is not able to be used for year-round residential purposes. Attorney Beck suggested the Council issue the permit with an expiration date of January 1, 2011. He stated the city would have to begin a revocation process if the permit was approved for 10 years and an acceptable plan never came forward. Councilmember Motin suggested the interim use permit be based on a time specific event. Then if the event didn't occur, the permit would automatically terminate. There was discussion on the conditions and how they should be organized. MOVED BY COUNCILMEMBER MOTIN AND SECONDED BY COUNCILMEMBER ZERWAS TO APPROVE AN INTERIM USE PERMIT FOR WAPITI PARK CAMPGROUND, INC., CASE NO. CU 10-16 WITH THE FOLLOWING CONDITIONS: 1. THE APPLICANT SHALL MAINTAIN ALL APPROPRIATE STATE LICENSES AT ALL TIMES. City Council Minutes August 2, 2010 Page 6 2. THE INTERIM USE PERMIT SHALL BE VALID FOR TEN YEARS OR UNTIL OWNERSHIP OF THE PROPERTY IS TRANSFERRED, WHICHEVER COMES FIRST. IN ADDITION THE INTERIM USE PERMIT SHALL TERMINATE JANUARY 1, 2011, IF THE FOLLOWING ITEMS HAVE NOT BEEN COMPLETED: A. A VERIFIABLE PLAN HAS BEEN APPROVED BY THE CITY COUNCIL THAT WILL ENSURE PERMANENT RESIDENTS WILL NOT LIVE AT THE RECREATIONAL CAMPING FACILITY. B. AN INSPECTION HAS VERIFIED THAT THE ONSITE SEPTIC SYSTEM IS DESIGNED TO BE FUNCTIONAL YEAR ROUND AND REMAINS FULLY FUNCTIONAL; C. STAFF HAS APPROVED A MANURE MANAGEMENT PLAN, IN COMPLIANCE WITH SECTION 10-9 OF CITY CODE; D. STAFF HAS APPROVED A DEBRIS MANAGEMENT PLAN ; E. THE APPLICANT HAS PROVIDED EVIDENCE THAT IT IS IN COMPLIANCE WITH ALL OUTSTANDING VIOLATIONS AS IDENTIFIED BY THE DEPARTMENT OF HEALTH INSPECTOR; F. ALL STRUCTURES AND VEHICLES OTHER THAN RECREATIONAL CAMPING VEHICLES AS DEFINED BY MINNESOTA STATUTES SECTION 327.14, SUBDIVISION 7 HAVE BEEN REMOVED; AND G. THE APPLICANT IS IN FULL COMPLIANCE WITH THE NINE CONDITIONS OF THE 1984 CONDITIONAL USE PERMIT, AS FOLLOWS: 1) THAT A PRIVATE ROAD AGREEMENT BE ENTERED INTO BETWEEN MR. WHITE AND THE CITY OF ELK RIVER FOR ACCESS FOR THE PROPERTY; 2) THAT THE NUMBER OF CAMPSITES WITHIN THE PROPERTY BE ESTABLISHED AT 109, WITH 20 TENT SITES AND THAT NO ADDITIONAL CAMPSITES BE PERMITTED; 3) THAT THE HOURS OF THE CAMPGROUND OPERATION BE FROM 8 AM TO 11 PM; 4) THAT ONLY MINOR MAINTENANCE AND REPAIR OF RECREATIONAL VEHICLES WHICH IS RESTRICTED TO CUSTOMERS OR CAMPERS ON THE SITE BE PERMITTED AT THE WAPITI FACILITY; 5) THAT THE STORE AND RESTAURANT ON THE EXISTING SITE BE USED PRIMARILY FOR INDIVIDUALS UTILIZING THE CAMPGROUND FACILITY AND THAT THE STORE AND RESTAURANT NOT BE EXPANDED; City Council Minutes Page 7 August 2, 2010 ----------------------------- 6) THAT THE PERMIT BE REVIEWED EVERY TWO YEARS; 7) THAT THE HORSES HOUSED AT THE SITE BE KEPT IN SUCH A MANNER THAT THEY DO NOT PROVIDE A NUISANCE TO ANY NEIGHBORING PROPERTY AS DEFINED IN THE CITY'S NUISANCE ORDINANCE; 8) THAT THE PROVISIONS OF THE MINNESOTA DEPARTMENT OF HEALTH RULES AND REGULATIONS PERTAINING TO RECREATIONAL CAMPING AREAS AND REFERRED TO AS MDH 187, AND THE PROVISIONS OF MINNESOTA STATUTE 327.10 THROUGH 327.28 PERTAINING TO RECREATIONAL CAMPING AREAS AND RECREATIONAL CAMPING VEHICLES SHALL APPLY AND BE CONDITIONS WITHIN THE CITY'S CONDITIONAL USE PERMIT; AND 9) THAT THE WHEELS MUST REMAIN ON VEHICLES PARKED IN CAMPGROUND AND THAT THERE BE NO PERMANENT UNITS FOR RENTAL PURPOSES. MOTION CARRIED 5-0. __--~- A. Consider Licluor Licenses Ms. Allard presented the staff report and noted the licenses should also be contingent on Condition #2 of the Wapiti interim use permit discussed above. MOVED BY COUNCILMEMBER WESTGAARD AND SECONDED BY COUNCILMEMBER ZERWAS TO APPROVE 3.2. PERCENT ON SALE AND 3.2. PERCENT OFF SALE LIQUOR LICENSES, AND A CONSUMPTION AND DISPLAY PERMIT TO WAPITI PARK CAMPGROUND, INC. WITH THE CONDITION THAT THE FOLLOWING CONDITIONS OF INTERIM USE PERMIT, CASE NO. CU 10-16, MUST BE MET BY JANUARY 1, 2011 OR THE LIQUOR LICENSES MAY BE REVOKED: A. A VERIFIABLE PLAN HAS BEEN APPROVED BY CITY COUNCIL THAT WILL ENSURE PERMANENT RESIDENTS WILL NOT LIVE AT THE RECREATIONAL CAMPING FACILITY. B. AN INSPECTION HAS VERIFIED THAT THE ONSITE SEPTIC SYSTEM IS DESIGNED TO BE FUNCTIONAL YEAR ROUND AND REMAINS FULLY FUNCTIONAL. C. STAFF HAS APPROVED A MANURE MANAGEMENT PLAN, IN COMPLIANCE WITH SECTION 10-9 OF CITY CODE; D. STAFF HAS APPROVED A DEBRIS MANAGEMENT PLAN ; E. THE APPLICANT HAS PROVIDED EVIDENCE THAT IT IS IN COMPLIANCE WITH ALL OUTSTANDING VIOLATIONS AS IDENTIFIED BY THE DEPARTMENT OF HEALTH INSPECTOR; City Council Minutes August 2, 2010 Page 8 F. ALL STRUCTURES AND VEHICLES OTHER THAN RECREATIONAL CAMPING VEHICLES AS DEFINED BY MINNESOTA STATUTES SECTION 327.14, SUBDNISION 7 HAVE BEEN REMOVED; AND G. THE APPLICANT IS IN FULL COMPLIANCE WITH THE NINE CONDITIONS OF THE 1984 CONDITIONAL USE PERMIT, AS FOLLOWS: 1) THAT A PRIVATE ROAD AGREEMENT BE ENTERED INTO BETWEEN MR. WHITE AND THE CITY OF ELK RIVER FOR ACCESS FOR THE PROPERTY; 2) THAT THE NUMBER OF CAMPSITES WITHIN THE PROPERTY BE ESTABLISHED AT 109, WITH 20 TENT SITES AND THAT NO ADDITIONAL CAMPSITES BE PERMITTED; 3) THAT THE HOURS OF THE CAMPGROUND OPERATION BE FROM 8AMTO1IPM; 4) THAT ONLY MINOR MAINTENANCE AND REPAIR OF RECREATIONAL VEHICLES WHICH IS RESTRICTED TO CUSTOMERS OR CAMPERS ON THE SITE BE PERMITTED AT THE WAPITI FACILITY; 5) THAT THE STORE AND RESTAURANT ON THE EXISTING SITE BE USED PRIMARILY FOR INDIVIDUALS UTILIZING THE CAMPGROUND FACILITY AND THAT THE STORE AND RESTAURANT NOT BE EXPANDED; 6) THAT THE PERMIT BE REVIEWED EVERY TWO YEARS; 7) THAT THE HORSES HOUSED AT THE SITE BE KEPT IN SUCH A MANNER THAT THEY DO NOT PROVIDE A NUISANCE TO ANY NEIGHBORING PROPERTY AS DEFINED IN THE CITY'S NUISANCE ORDINANCE; 8) THAT THE PROVISIONS OF THE MINNESOTA DEPARTMENT OF HEALTH RULES AND REGULATIONS PERTAINING TO RECREATIONAL CAMPING AREAS AND REFERRED TO AS MDH 187, AND THE PROVISIONS OF MINNESOTA STATUTE 327.10 THROUGH 327.28 PERTAINING TO RECREATIONAL CAMPING AREAS AND RECREATIONAL CAMPING VEHICLES SHALL APPLY AND BE CONDITIONS WITHIN THE CITY'S CONDITIONAL USE PERMIT; AND 9) THAT THE WHEELS MUST REMAIN ON VEHICLES PARKED IN CAMPGROUND AND THAT THERE BE NO PERMANENT UNITS FOR RENTAL PURPOSES. MOTION CARRIED 5-0. 5.3. Mr. Benoit presented Mr. Lees erg's staff report.