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5.4C. SR 12-13-2004 Item' 5.4C. MEMORANDUM TO: Mayor and City Council FROM: Stephen Rohlf. Building and Environmental Administrator DATE: December 13, 2004 'Sf.- SUBJECT: Energy House III Backgournd The Suburban Northwest Builders Association is proposing to build Energy House III. Like Energy Houses I and II, Energy House III will be loaded with the latest energy efficient technologies and construction practices and will be used as an Energy City demonstration. The house will be built to the new National Association of Home Builders Model Green Home Building- Guidelines, incorporating recycled products and ensuring good indoor air quality. The Cold Weather Climate Housing Coalition is assisting with the design and the Recycling Association of Minnesota is helping identify recycled building products for Energy House III. Although construction on the house is proposed to begin in the spring of 2005, the Builders Association want the house to also demonstrate the application of the new State Energy Code regulations, which won't be adopted until 2006. This can be done under the approval of the local Building Official contingent on the house being retrofitted to meet the code as adopted. Sire Lot 29, Block 2, Nordic Hills has tentatively been selected as the site of Energy House III. A vicinity map and a plat map showing the location of this lot is attached to this memo. This lot provides easy-to-fmd access off of County Road #1, a good southern exposure to take advantage of passive solar energy and room for off-street parking. Approval Process Besides being used as an Energy City demonstration site, the Builders Association would like to use Energy House III as their offices (similar to a temporary real estate office in a model home). This will require Planning Commission review and City Council approval through the city's Interim Use Ordinance (Section 30-658, page 30:85, copy is attached). Staff anticipates this process beginning in January or February of 2005. Issues that will need to be addressed include off-street parking, hours of operation, signage, screening and an expiration date for the use. Energy Ci1:y's Participation Energy City will be aiding in the construction of Energy House III by: >> providing technical assistance and monitoring results on energy issues >> providing technical advice on green/healthy indoor air quality issues >> coordinating with Energy Alley to promote the house >> aiding with the grand opening >> lining up tours and other promotions of house >> identifIng grant sources. Financial Aid Due to the extreme effort it takes to accomplish a project of this nature, Energy City would like Energy House III to remain a demonstration site for three years. Northwoods Custom Homes and Remodeling have been selected to construct the house. The plan is for Northwoods to receive a reasonable profIt for their efforts when the house is sold after the three years; however, due to carrying costs (interest rates) this can't happen without fmancial help on the front end. To aid with the carrying costs, Energy City and Builders Association will be looking for various companies to donate building supplies and other products at a reduced cost in exchange for the advertising benefIt of being involved with the project (i.e. ECONAR is donating heat pumps). Grants, Conservation Improvement Program money from utilities in this area and low interest loans from a local bank for incorporating energy efflcient technology are examples of other potential sources of aid that will be explored. Potential Ci1:y of Elk River Involvement Staff would like to discuss the following potential ways the city could assist this project: >> delayed SAC (Sewer Availability Charge) and building permit fees (delayed WAC [Water Availability Charge] needs Utility Commission approval) >> Landf1ll Abatement Funds if house is used for recycling education >> discuss with Sherburne County the use of the house as Builders Association OffIce being taxed as residential property not commercial >> Tax Rebate Financing. ELK RIVER ORTSMAN CLUB , I I -+--+- I I 1 I -~+--+ I I I I --+ I I I I , I __ I T 1 I T I I + ~ I~ '7 >OW I WOO LAND 1: ILS CITY PMK I I I I I _+__+1 _ I I -+-- I I I - I 1 +--+----t--- TOP 01 I I THE I WORLD -PARK 1 I + ~ I I -+- I ~$I -~+-- ~ LOT I 29. ~ BLOCK I 2. NORDIC HILLS , I I I o Sf I~ 2C ~. .".."..........- / / ~'J~~ / 0V<:'- . ,p~ ,p~r;, 1,'\/ ,,0 cg r;P~r;, :~'\/ // , , , , , , , , , , I , , , , , , , , , , t<Y~ <- . ..2 _ !l! ~ '1! I _'_u ri' "J :r:"'~ f11~~ ~~ N N "':. 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"& ~\ ~~~ <?J. ~ I II ,o~.., c'" 'f"" "- \ ~.L'$" " ~ iJ'..... \ \ cn~'\. \, ',0 ot~ <:-, ~ "~\ r .\\ ~~ ~ ~\ 0 ~~ ~ ~~\~ 't ~ \. 0 ~ .. iii '~i " ", .' .. ,19 .II! " ~ Ih .~-~ ~ LAND DEVELOPMENT REGULATIONS Sec. 30-657. Compliance. Any use permitted under the terms of a condi- tional use permit shall be established and con- ducted in conformity with the terms of such permit and of any conditions established in con- nection therewith. A violation of any such condi- tion shall constitute a violation of this article and shall be subject to the penalties and enforcement actions provided for in section 30-576. (Ord. No. 00-05, ~ 1(900.42(7)), 3-20-2000) Sec. 30-658. Interim uses. (a) Definitions. The definitions in section 30-1 are applicable in this section. (b) Authorization. The city council may autho- rize interim uses of property by issuance of in- terim use permits. Interim uses that are not consistent with the land use designated on the adopted land use plan may be authorized. Interim uses that fail to comply with all of the zoning standards established for the district within which the use is located may also be authorized. (c) Criteria. In determining whether to autho- rize an interim use, the planning commission and city council shall consider the following criteria: (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 prop- erty will be left in suitable condition after the use is terminated. (3) The use is similar to uses defmed 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 addi- tional 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 condi- tions that the city council deems appro- priate for authorization of the interim use. CD30:85 ~ 30-659 (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 this criteria. (d) Required findings. The city council must determine that the authorization of the interim use will not result in adverse effects on the public health, safety, or welfare. (e) Application for permit. Applications for in- terim use permits shall be processed in the same manner as for conditional use permits, as estab- lished in this subdivision III. (Ord. No. 00-05, ~ 2(900.42), 3-20-2000) State law reference-Interim uses, Minn. Stats. ~ 462.3597. Sec. 30-659. Revocation. (a) In addition to the remedies otherwise pro- vided for in this ordinance, failure to comply with the conditions set forth in the approval of a conditional use permit may result in revocation of the permit by the city. (b) The revocation process shall be as follows: (1) If the city administrator or the city coun- cil determines that cause exists to find noncompliance with the terms of a condi- tional use permit, the city council may direct that a hearing be scheduled before the city council to receive testimony and evidence, to establish findings, and to determine whether the conditional use permit shall be revoked. (2) The owner of the property on which the conditional use is located, and, if known to the city, the owner or operator of the conditional use, shall be notified of the hearing by personal delivery or certified mail, no less than ten days before the hearing. The notice of hearing shall in- clude a summary of the alleged noncom- pliance of the conditional use permit. (3) At the hearing, the city council shall re- ceive testimony and evidence ITom the