7.3 SR 06-16-2025The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
Request for Action
To
City Council
Item Number
7.3
Meeting Date
June 16, 2025
Prepared By
Chris Leeseberg, Senior Planner
Item Description
Conditional Use Permit Revocation: Carnova, 17242
Ulysses St NW
Reviewed by
Zack Carlton
Cal Portner
Tina Allard
Action Requested
Conduct a hearing and receive evidence and testimony regarding the possible revocation of the Conditional
Use Permit (CU 23-02), issued to Omar Alnuaimi (CARNOVA LLC) for 17242 Ulysses St. NW.
At the conclusion of the hearing, adopt two motions: first, a motion to continue the hearing to the July 21,
2025, council meeting and direct staff to prepare a resolution revoking Conditional Use Permit (CU 23-02)
for consideration at that meeting; and second, a motion to give the property owner the opportunity to avoid
revocation of the CUP by doing one of the following, either submitting a new Conditional Use Permit
application by June 30, 2025, or removing the excess vehicles from the property by July 14, 2025.
Background/Discussion
Conditional Use Permit (CU 23-02) was approved on April 3, 2023, with specific conditions regulating the
storage of damaged or inoperable vehicles on the property. One of the conditions explicitly requires that such
vehicles be stored only within the building or within a designated, fenced storage area limited to 900 square
feet.
Summary of Compliance Issues:
▪ First Violation Notification:
A notification letter was issued on February 11, 2025, documenting that damaged vehicles were not
being stored within the approved 900-square-foot fenced area. Instead, they were observed stored
across a substantial portion of the property, in some areas stacked up to three vehicles deep.
First Deadline to Comply: March 7, 2025
▪ Second Violation Notification:
A follow-up letter was sent on March 5, 2025, reiterating that multiple violations of the Conditional
Use Permit (CUP) conditions that remained unresolved. The letter advised that continued non-
compliance could impact the ability to maintain operations under the existing CUP.
Revised Deadline to Comply: April 7, 2025
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▪ Request for Extension:
The applicant’s attorney requested an additional 60-day extension. City staff expressed that
compliance remains a priority, and such an extension is not feasible. However, in an effort to support
voluntary compliance, the city granted a third and final extension through April 30, 2025.
Despite the final extension, staff's review of the site indicates that a substantial number of vehicles continue to
be stored outside the approved storage area. Given the ongoing non-compliance, staff informed the applicant
that an agenda item would be included on the May 5, 2025, City Council meeting to discuss possible
revocation of CUP 23-02.
During the May 5, 2025, meeting, the City Council stated they were willing to give an extension one last time
and explained that we are not trying to put them out of business, but want to help Mr. Alnuaimi comply with
the conditions of the CUP.
The Council discussed an extension date and decided they would give Mr. Alnuaimi until June 13, 2025, and
directed staff to give the Council a report at the June 16, 2025, Council meeting, and if Mr. Alnuaimi has met
the requirements or not, and if not, they will proceed with the city attorney on the next steps.
As of June 11, 2025, the site had not been brought into compliance. A hearing to consider revocation of the
CUP was scheduled for June 16, 2025. Notices of the public hearing were sent by certified mail to the
applicant on May 30, 2025. Mailed notices of the public hearing were sent on May 30, 2025, to owners of
properties within 500 feet of 17242 Ulysses St. NW. The public hearing was advertised in the Star News on
May 31, 2025.
On June 10, 2025, staff were informed by the property owner, Brian Cain, that Mr. Alnuaimi has filed for
bankruptcy and has moved out of the state. Mr. Cain wants to work with the two operators that were
subleasing from Mr. Alnuaimi to bring the property into CUP compliance and apply for an amendment to the
CUP to include a larger fenced-in storage area.
City staff recommend allowing additional time for the property owner to either remove the vehicles from the
property or submit a new Conditional Use Permit (CUP) application by June 30, 2025. If an application is not
received by that date, all damaged and inoperable vehicles must be removed by July 14, 2025. If neither the
application is submitted nor the vehicles are removed by their respective deadlines, a resolution of denial will
be presented to the City Council for adoption at its July 21, 2025, meeting.
Financial Impact
None
Mission/Policy/Goal
Ethical, efficient, and responsible.
Attachments
1. Mr Cain Email 6-10-2025
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From:brian.cain@visionmold.netTo:Chris LeesebergSubject:RE: Vehicles?Date:Tuesday, June 10, 2025 5:19:45 PMChris,Good afternoonI wanted to let you know that Omar left and moved to Detroit Michigan, the bankruptcy is stillongoing .The lot is much better now that he left.Adam and Mhammed have been getting things into compliance, I wanted to be at the citycouncil the 16 but my work is sending me to Chicago for the week, and I cannot get out of it.If possible, I want to work with Adam and Mhammed to bring everything up to the cities specification and work within the CUP at 17242 Ulysses st.And apply to have the fence made larger to avoid any future problems.Please advise if you can.Thank you very much.Brian L Cain From: Chris Leeseberg <CLeeseberg@ElkRiverMN.gov> Sent: Tuesday, May 27, 2025 4:35 PMTo: brian.cain@visionmold.netSubject: Vehicles? Brian, I have not driven by recently, have any vehicles been removed yet? Thank you Chris LeesebergCity of Elk River – Senior Planner13065 Orono Parkway, Elk River, MN 55330
763.635.1033 ElkRiverMN.gov
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