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8.2. SR 04-04-2016 Eclty1� ,.,�� Request for Action River To Item Number Mayor and City Council 8.2 Agenda Section Meeting Date Prepared by General Business Aril 4, 2016 Zack Carlton,Planning Manager Item Description Reviewed by Resolution for Findings of Fact—Interim Use Cal Portner, Ci Administrator Permit request by The Briggs Companies Reviewed by Action Requested Adopt,by resolution, the Findings of Fact for approval of a three year Interim Use Permit authorizing an extended stay hotel at 17432 Zane St NW with the following conditions: 1. The applicant shall cooperate with, and not object to, a city initiated rezoning of the property from C-3 Highway Commercial to R-4 Multiple Family Residential (or similar) which will bring the zoning of the property into consistency with the land use designation of the property as identified in the City of Elk River Comprehensive Plan. 2. The Applicant shall,by May 4,2016, apply to the city for a rental license for the property and shall promptly complete all necessary repairs and other requirements for issuance of a rental license. This IUP shall expire,by its terms,if a rental license is not in place for the property on July 5, 2016. The rental license shall be maintained continually during the duration of the IUP. 3. The applicant shall,by April 4, 2017, submit a complete application for all approvals required to convert the property to a multi-family use allowed in the R-4 (or similar) zoning district. This IUP shall expire,by its terms,if such a complete application is not received by April 4, 2017. 4. The applicant shall,by April 4, 2019, complete all improvements necessary to use the property for a use allowed in the zoning district and shall have been issued a certificate of occupancy for a use allowed in the R-4 (or similar) district by April 4,2019. 5. This Interim Use Permit is good for three years and,if it is still in effect on April 4, 2019, shall expire on that date without any further action of the city. 6. The front desk shall be staffed Monday through Friday from 9am to 4pm. 7. Outside storage is not permitted. 8. The Interim Use Permit is not a building permit and the applicant must apply for and receive approval of required building and sign permits before any construction may begin. 9. The property shall meet all current fire,building, and international property maintenance codes. 10. The property must be licensed by all appropriate state and local agencies for the duration of the Interim Use Permit. 11. This Interim Use Permit shall also expire,without any further action by the city,if the use authorized here in ceases for more than six months. Background/Discussion Case No. CU 16-07 POWERED 6T AR On March 21, 2016, the City Council reviewed the Interim Use Permit (IUP) application for authorization to operate an extended stay hotel at 17432 Zane St NW while the applicant works towards converting the facility to an apartment building. The Council consensus was that a five-year IUP is too long as nearly two years had passed since the hotel use ceased. Having not observed any progress towards conversion to an apartment building, the Council agreed to a three-year IUP. Council directed staff to prepare a Findings of Fact approving a three year IUP for the April 4, 2016, meeting. Financial Impact None Attachments ■ Resolution for Findings of Facts N:APublic Bodies\Agenda Packets\04-04-2016\x8.2 sr ER Lodge FoF-Briggs 4-4-2016.docx RESOLUTION 16 - A RESOLUTION OF THE CITY OF ELK RIVER A RESOLUTION APPROVING THE REQUEST FOR A THREE YEAR INTERIM USE PERMIT ALLOWING OPERATION OF AN EXTENDED STAY HOTEL ON THE PROPERTY LOCATED AT 17432 ZANE STREET NW WHEREAS, Pat Briggs, Elk River Lodge and Residential Suites, ("Applicant"),has applied ("Application") for an Interim Use Permit (Case No. CU 16-07) to operate an extended stay hotel on the property located at 17432 Zane Street NW ("Property"); and WHEREAS, the record in this matter shall include all of the materials submitted to the Planning Commission and City Council in connection with the ■ January 26, 2016,Interim Use Permit Application; including the staff reports and all attachments thereto, all other written materials submitted to the Planning Commission and City Council, and all staff presentations and other testimony taken at the public meetings considering the Interim Use Permit, all of which is incorporated in and made a part of the findings of fact and this resolution; and WHEREAS, the Planning Commission held a public hearing on February 23, 2016, to receive testimony and evidence from city staff, the Applicant and any other persons regarding the Application; and WHEREAS, the Planning Commission recommended approval of a five year Interim Use Permit; and WHEREAS, the City Council held a public hearing on March 21,2016, to receive testimony and evidence from city staff, the Applicant and any other persons regarding whether the Application should be approved; and WHEREAS, the Applicant and all others wishing to speak were given opportunities to present testimony to the Planning Commission and City Council; and WHEREAS, the City Council, at the conclusion of its March 21,2016,public hearing on the Application,made findings regarding the Application. NOW, THEREFORE, the City Council of the City of Elk River makes the following findings of fact and decision with respect to the Application of Pat Briggs for an Interim Use Permit to operate an extended stay hotel at 17432 Zane St NW. FINDINGS OF FACT 1. The parcel at 17432 Zane Street NW was issued a Conditional Use Permit to operate as a hotel on May 18, 2011. 2. The hotel operation continued as a legal conforming use until a regular inspection from the State Fire Marshal's office on May 1, 2014, noted the building was no longer being operated as a hotel as authorized by the Conditional Use Permit,but as an apartment building. 3. On July 17, 2014, city staff sent a letter to the property owner which informed them the city was aware of the cessation of the hotel use and noted the need to re-establish the use or the Conditional Use Permit would expire. 4. On November 1, 2014,in accordance with Elk River City Ordinance section 30-656, the Conditional Use Permit authorizing a hotel use at 17432 Zane Street NW expired as the authorized use had ceased for six months. 5. During an inspection by the City's Fire and Building Safety department in the spring of 2015, staff identified a number of units within the building that had been modified to include cooking facilities (stoves). The city had not been aware of these changes during the previous Conditional Use Permit process. 6. On August 10, 2015, Elk River staff sent the property owner a cease and desist letter stating the need to cease the illegal apartment operation. 7. During the fall and winter of 2015 the Applicant submitted land use application packages on August 31, 2015, September 28, 2015, October 26, 2015, and December 1, 2015. All four submittals were returned as incomplete or withdrawn by the applicant. 8. On January 26, 2016, the Applicant submitted the Application for an Interim Use Permit, Case No. CU 16-07, to operate an extended stay hotel. The application was deemed complete and scheduled for review by the Planning Commission and City Council. 9. Interim Use Permits are reviewed in accordance with the following criteria, as identified in section 30-658 of the Elk River City Code. (1) The period of time for which the interim use permit is to be granted will terminate before any adverse impacts are felt upon adjacent properties. (2) There is adequate assurance that the property will be left in suitable condition after the use is terminated. (3) The use is similar to uses allowed in the zoning district in which the property is located. (4) The date or event that will terminate the use can be identified with certainty. (5) Authorizing the use will not impose additional costs on the public if it is necessary for the public to take the property in the future. (6) The applicant and user agree to all conditions that the city, council deems appropriate for authorization of the interim use. (7) The applicant provides assurances deemed adequate by the city council that the use will terminate as provided in the interim use permit. The city council may require the applicant to deposit a cash amount with the city, or provide some other form of security, to ensure compliance with these criteria. (8) Authorization of the interim use will not result in adverse effects on the public health, safety, or welfare. (9) The proposed interim use is consistent with the City of Elk River Comprehensive Plan and conforms to the city's zoning regulations. 10. The Planning Commission reviewed the Application on February 23, 2016. a. The Commission voted 3-1-1(CommissionerThiel opposed. Commissioner Johnson abstained) to approve a five year Interim Use Permit. 11. On March 21, 2016, the City Council reviewed the Application. 12. The City Council disagreed with the Planning Commission's recommendation of five years and determined that, subject to appropriate conditions, the Application meets the requirements for approval of an Interim Use Permit and that approval is in the public interest. DECISION Therefore, the City Council of the City of Elk River approves the Application for an Interim Use Permit application to operate an extended stay hotel at 17432 Zane St NW,based on the findings of fact set forth above, and subject to the following conditions: 1. The applicant shall cooperate with, and not object to, a city initiated rezoning of the property from C-3 Highway Commercial to R-4 Multiple Family Residential (or similar) which will bring the zoning of the Property into consistency with the land use designation of the property as identified in the City of Elk River Comprehensive Plan. 2. The Applicant shall,by May 4,2016, apply to the city for a rental license for the Property and shall promptly complete all necessary repairs and other requirements for issuance of a rental license. This IUP shall expire,by its terms,if a rental license is not in place for the Property on July 5, 2016. The rental license shall be maintained continually during the duration of the IUP. 3. The Applicant shall,by April 4, 2017, submit a complete application for all approvals required to convert the Property to a Multi-Family use allowed in the R-4 (or similar) zoning district. This IUP shall expire,by its terms,if such a complete application is not received by April 4, 2017. 4. The Applicant shall,by April 4, 2019, complete all improvements necessary to use the Property for a use allowed in the zoning district and shall have been issued a certificate of occupancy for a use allowed in the R-4 (or similar) district by April 4, 2019. 5. This Interim Use Permit is good for three years and,if it is still in effect on April 4, 2019, shall expire on that date without any further action of the city. 6. The front desk shall be staffed Monday through Friday from 9am to 4pm. 7. Outside storage is not permitted. 8. The Interim Use Permit is not a building permit and the applicant must apply for and receive approval of required building and sign permits before any construction may begin. 9. The Property shall meet all current fire,building, and international property maintenance codes. 10. The Property must be licensed by all appropriate state and local agencies for the duration of the Interim Use Permit. 11. This Interim Use Permit shall also expire,without any further action by the city,if the use authorized here in ceases for more than six months. Passed and adopted this 41h day of April 2016. John J. Dietz,Mayor ATTEST: Tina Allard, City Clerk