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Special Planning Commission Packet - September 1, 2026 Planning Commission Special Meeting Agenda Tuesday, September 1, 2026 6:30 PM Elk River City Hall ▪ Special meeting in Council Chambers 1. CALL MEETING TO ORDER 2. PLEDGE OF ALLEGIANCE 3. CONSIDER AGENDA 4. CONSIDER MINUTES 4.1 DRAFT Minutes - July 28, 2026 5. PUBLIC HEARINGS An opportunity for the public to express their opinions and raise questions pertaining to the agenda item. All comments become part of the official public record. For this reason, all comments must be made at the podium so they can be heard and recorded. Comments may also be provided in writing. There will not be deliberations, discussions, or answers to questions until the hearing is closed. It is important to be courteous and allow each presenter to comment before adding additional testimony. 5.1 Ordinance Amendment and Interim Use Permit: Educational Institution in the MU-ERP District, Good Shepherd Lutheran High School - 630 Freeport Ave NW 5.2 Zone Change: Amend Zoning for Selected Parcels from Light Industrial (I-1) to Central Business District (C-1) 5.3 Ordinance Amendment: Cottage Food Exemption to the Residential Occupation Standards 6. GENERAL BUSINESS Items in which the information is presented by city staff or consultants, then deliberation and action occur. General Business items are not opportunities to receive or provide public input. However, the presiding officer may, at its sole discretion, solicit public feedback. 7. COUNCIL LIAISON UPDATES 8. MOTION TO ADJOURN Page 1 of 81 Meeting of the Planning Commission Held at the Elk River City Hall Tuesday, July 28, 2026 Members Present: Chair Perry Beise, Commissioner Eric Johnson, Commissioner Robert Rydberg, Commissioner Dennis Booth, Commissioner Anthony Kaba, Commissioner James Lang Members Absent: Councilmember Jennifer Wagner Staff Present: Community Development Director Zack Carlton and Recording Secretary Katie Porath 1. CALL MEETING TO ORDER Pursuant to due call and notice thereof, the meeting was called to order at 6:30 p.m. 2. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was recited. 3. CONSIDER AGENDA Moved by Commissioner Rydberg and seconded by Commissioner Booth to approve the agenda. Motion carried 6-0. 4. CONSIDER MINUTES Moved by Commissioner Johnson and seconded by Commissioner Booth to approve the following consent items as outlined in their respective staff reports. Motion carried 6-0. 4.1 DRAFT Minutes - June 23, 2026 5. PUBLIC HEARINGS 5.1 Conditional Use Permit: Data Center, Michael Margulies - 19178 Industrial Blvd NW The staff report was presented. The application has been withdrawn. No action is required from the Commission. 5.2 Preliminary Plat and Conditional Use Permit: Cornerstone Kia Expansion, Mississippi Highlands LLC - 17094 Vance St NW Page 2 of 81 Planning Commission Minutes July 28, 2026 --------- Page 2 of 4 The staff report was presented. Commissioner Booth asked if the applicant is paying for the extension of Vance St NW. Mr. Carlton stated that they would pay for the extension. Commissioner Rydberg asked if external lighting standards have been updated since the Cornerstone dealership was first built. Mr. Carlton responded that ordinance requirements for lighting standards have not changed. Commissioner Rydberg commented that there are new styles of lighting that shine downward and use LED. Chair Beise opened the public hearing. Steve Rohlf, 12821 188th Ave, applicant, stated he has been going to city meetings for 44 years but this meeting is his last one. Chair Beise closed the public hearing. Moved by Commissioner Johnson and seconded by Commissioner Booth to recommend approval of the preliminary plat for Jabez Fourth Addition, subject to the following conditions: 1. Wetland boundaries identified on the plat will need to be updated after receiving a Notice of Decision. 2. All existing utility easements must remain in place. 3. The watermain shown on the preliminary plat is inaccurately shown and must be updated. 4. If there are any proposed changes to the water service, they must be communicated to Elk River Municipal Utilities. 5. The developer is responsible for connecting Vance Street and 170th Ave. Motion carried 6-0. Moved by Commissioner Johnson and seconded by Commissioner Booth to recommend approval of the Conditional Use permit (CUP) authorizing expansion of the automobile sales operation at 17094 Vance St NW, subject to the following conditions: 1. Staff approval of all site, civil, landscaping, and utility plans. 2. An encroachment agreement for the parking lot improvements proposed to be constructed over the drainage and utility easements must be approved by the city council prior to the issuance of building permits. 3. All structures must remain outside of existing drainage and utility easements. 4. Parking lot islands in accordance with Sec. 30-935 must be included in the final plans. 5. Submit plans demonstrating compliance with the city's landscaping standards. Motion carried 6-0. 5.3 Interim Use Permit: Home Business (Salon), Stacey Cleveland — 10218 187th Ave NW Page 3 of 81 Planning Commission Minutes July 28, 2026 --------- Page 3 of 4 The staff report was presented. Commissioner Rydberg verified that the permission to use the house as a commercial space followed the ownership and was not attached to the land. Mr. Carlton confirmed that the IUP would expire if the owner moves and, if another salon owner wishes to use the space, they would need to apply for their own IUP. Chair Beise opened the public hearing. There being no one to speak to this matter, Chair Beise closed the public hearing. Commissioner Johnson asked if the houses surrounding the applicant were occupied for notification purposes. Mr. Carlton stated many of the homes in the area are occupied and notices were sent to homeowners within 500 feet of the residence. Moved by Commissioner Johnson and seconded by Commissioner Booth to recommend approval of the Interim Use Permit with the following conditions: 1. The IUP will expire upon the sale of the property. 2. Customer parking is only allowed on the private driveway. 3. The building and business must meet Minnesota State Building Codes and the Minnesota Board of Cosmetology requirements. Motion carried 6-0. 5.4 Conditional Use Permit: Industrial Expansion with Overhead Doors, CDI Curbs - 17560 Tyler St NW The staff report was presented. Commissioner Lang left the meeting at 6:47 p.m. Commissioner Rydberg stated, since CDI is located in an industrial area, there should not need to be as much emphasis on screening and landscaping. Chair Beise opened the public hearing. Steve Oliver, representing Mohagen Hansen, was available for questions. Commissioner Johnson asked if Mr. Oliver had an issues with planting additional trees for screening. Mr. Oliver did not have issues with this request. Chair Beise closed the public hearing. Moved by Commissioner Johnson and seconded by Commissioner Booth to recommend approval of the Conditional Use Permit with the following conditions: 1. Additional year-round evergreen landscaping shall be planted along the north property line to screen the overhead doors and satisfy the screening standards set forth in Section 30-654. Page 4 of 81 Planning Commission Minutes July 28, 2026 --------- Page 4 of 4 2. The CUP will not be recorded until the property lines have been adjusted to accommodate the proposed building site. 3. Easements running along the existing property boundary must be vacated prior to building permit issuance. Motion carried 5-0. 5.5 Conditional Use Permit: Municipal Liquor Store, City of Elk River - 19417 Evans St NW The staff report was presented. Commissioner Lang returned to the meeting at 6:51 p.m. Chair Beise opened the public hearing. There being no one to speak to this matter, Chair Beise closed the public hearing. Moved by Commissioner Johnson and seconded by Commissioner Booth to recommend approval of the Conditional Use Permit as the standards set forth in Section 30-654 are satisfied. Motion carried 6-0. 6. GENERAL BUSINESS There was no general business. 7. COUNCIL LIAISON UPDATES Mr. Carlton stated that the City Council has agreed with the Planning Commission recommendation for a moratorium on data centers and will review a one-year moratorium at their August 3, 2026 City Council meeting. 8. MOTION TO ADJOURN Moved by Commissioner Johnson and seconded by Commissioner Booth to adjourn the meeting. Motion carried 6-0. The meeting adjourned at 6:54 p.m. Minutes prepared by Katie Porath. __________________ Perry Beise, Chair ______________________ Justin Dunford, City Clerk Page 5 of 81 The Elk River Vision A resilient, welcoming, and thriving community that leads through innovation, meaningful engagement, exceptional service, and responsible planning for future generations. Request for Action To Planning Commission Item Number 5.1 Meeting Date September 1, 2026 Prepared By Zack Carlton, Community Development Director Item Description Ordinance Amendment and Interim Use Permit: Educational Institution in the MU-ERP District, Good Shepherd Lutheran High School - 630 Freeport Ave NW Reviewed by Chris Leeseberg Action Requested Recommend, by motion, approval of an ordinance amendment allowing Educational Institutions as an Interim Use in the MU-ERP zoning district. Recommend, by motion, approval of an Interim Use Permit for Good Shepherd Lutheran High School, subject to the following conditions: 1. The City Council must adopt an ordinance adding Educational Institutions as an Interim Use in the MU-ERP zoning district. 2. The IUP will expire when Good Shepherd Lutheran High School ends operation at the approved location. 3. Any expansion of the approved use or transfer to another user group for the same use will require city approval of a new IUP. 4. Architectural plans will need to be reviewed by the MN Department of Labor and Industry prior to submitting for city building permits. 5. All costs associated with potential address changes of affected tenants will be the responsibility of the property owner and/or applicant. Background/Discussion Good Shepherd Lutheran High School would like to establish a school in the former movie theater building along Freeport Ave NW. The applicant had also applied for a similar request earlier this year, but withdrew the application before the city council made a formal decision. The current application includes an ordinance amendment to add Educational Institutions as an Interim Use in the Mixed Use Elk River Plaza (MU-ERP) zoning district and an Interim Use Permit to allow the use within the existing building at 630 Freeport Ave NW. The zoning district is a former Planned Unit Development (PUD) district where the PUD agreement was incorporated into the city codes in 2010. The zoning district is divided into three separate areas: multifamily residential, single-family residential, and commercial. Each of these areas are distinct in their location within the district and act as separate districts with their own allowed uses. The Page 6 of 81 proposed amendment would apply to the commercial section as the proposed building site is within the commercial section of the MU-ERP zoning district. Commercial districts, especially those along major highways, support retail and commercial uses and provide employment and economic opportunities throughout the community. Educational uses do not support the goals of a commercial district. Staff do not support the proposed ordinance amendment. However, based on the public hearings held regarding a nearly identical ordinance amendment request earlier this year and after receiving direction from both the Planning Commission and City Council in support of allowing Educational Institutions as an Interim Use in the MU-ERP zoning district, staff have provided a recommendation of approval. Interim Use Permit The proposed educational facility will occupy three units within the multi-tenant building, approximately 8,000 square feet. The current proposal includes a multipurpose space, four classrooms, a common area along with an office and staff lounge, and restrooms. This proposal differs from the previous proposal as it does not restrict access to the existing public restrooms, nor does it impact the existing entrances to the building. Previous conditions related to accessible entrances and alternative bathroom access are no longer applicable. The school employs 2 full-time and 5 part-time staff members and typical hours of operation are Monday to Friday from 8:30 AM to 3:00 PM. There may be occasional evening or weekend school-related activities that extend beyond the typical hours of operation. The site had previously been used for a movie theater and has ample parking available to support the school use. Applicable Regulations Section 30-658 of the city code outlines the following standards required for approval of an Interim Use Permit. 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. The proposed school use will occupy existing leasable space within a multi-tenant building. The applicant will complete numerous tenant improvements to ensure the space meets their needs. Neither the space they are occupying nor the proposed improvements are detrimental to other spaces within the building, and there will be no adverse impacts on adjacent parcels or units. 2. There is adequate assurance that the property will be left in suitable condition after the use is terminated. The proposed modifications are indoors and are consistent with tenant improvements expected within a similar building. The spaces proposed for use by the school will be left in a 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. A school use receives morning and afternoon traffic and provides spaces for people to work and learn during the day. This can be considered similar to an office type use. 4. The date or event that will terminate the use can be identified with certainty. According to the recommended conditions, the use would be allowed to continue until the current applicant, Good Shepherd Lutheran High School, chooses to discontinue their operation. 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. Page 7 of 81 The use as a school will not impose additional costs on the public. The occupied space is within a multi-tenant building and the land owner would address problematic issues before the city needs to become involved. 6. The property owner or lessee agree to all conditions that the city council deems appropriate for authorization of the interim use. The applicant and property owner will have an opportunity to share any concerns they may have with the conditions of approval during the public hearings at the Planning Commission and City Council. 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. Staff have not identified a need to secure an escrow and do not recommend collecting one. 8. Authorization of the interim use will not result in adverse effects on the public health, safety, or welfare. The use will not have an adverse effect on public health, safety, or general welfare. 9. The proposed interim use is consistent with the City of Elk River comprehensive plan and conforms to the city's zoning regulations. The recommended conditions will ensure the proposed use is consistent with the city's Comprehensive Plan and conforms to the city's zoning regulations. Staff find that all the standards required for approval of an Interim Use Permit have been met and recommend approval. Financial Impact None. Mission/Policy/Goal Reflect the culture of citizens and what is important. Attachments 1. OA 26-07 and IU 26-03 Location Map 2. Applicant's Narrative 3. Proposed Floor Plan 4. Presentation Page 8 of 81 Page 9 of 81 Legal Description of Property 75-00447-0110 A Written Narrative see Description of Project Narrative Project Narrative – GSL High School Detailed Description / Scope of Project: GSL High School is a small Christian high school seeking to expand and formalize its facility to better serve its students and the community. The project includes the use of the existing building for educational purposes, along with interior modifications to optimize classroom, office, and multi- purpose space usage. The goal is to provide a safe, functional, and faith-centered learning environment for students in grades 9–12. Proposed Project: The proposal is to operate a private Christian high school within the existing building footprint. The facility will include classrooms, administrative offices, and a multi-purpose assembly/worship area. Consistency with City of Elk River Comprehensive Plan: The project aligns with the City of Elk River Comprehensive Plan by supporting educational services, community development, and family-oriented uses. The school promotes lifelong learning, civic engagement, and community values, contributing to the social and cultural objectives outlined in the plan. Hours of Operation: Monday–Friday: 8:30 AM – 3:00 PM Occasional evening/weekend events for school-related activities (e.g., parent meetings, performances, community events) Number of Employees: 2 Full-Time Staff 5 Part-Time Staff Parking: Existing parking: 20 stalls No additional stalls are required; current parking accommodates staff, students, and visitors. Site Screening: Landscaping and natural screening exist on-site. Proposed Building Materials: Interior: Steel framing, commercial-grade flooring, acoustical ceiling tiles, and impact-resistant surfaces for high-traffic areas Compliance with Design Standards: All proposed materials meet or exceed Elk River design and building code standards, ensuring safety, durability, and an appearance compatible with surrounding structures. Signage: Separate permits will be obtained for each sign Proposed: 2 exterior signs identifying the school Size: To comply with city regulations Location: Front and back of the building Type: Non-illuminated channel letters as permitted Outdoor Storage: No significant outdoor storage is planned. Variance Request Narrative – GSL High School Detailed Description of the Request: GSL High School is a small Christian high school requesting permission to operate 630 Freeport Ave, Elk River. We are requesting a variance to allow the school to operate in the current building configuration Page 10 of 81 despite multi-use zoning. The variance would enable us to provide faith-based secondary education for students in grades 9–12 while maintaining compliance with safety, accessibility, and site requirements. Our school currently employs 2 full-time and 5 part-time staff and Page 11 of 81 $%'()*+ADJACENT TENANT ADJACENT TENANTADJACENT TENANTADJACENT TENANT ADJACENT TENANTSTORAGE STORAGEPUBLICRESTROOMSSUITE #900SUITE #800SUITE #10009'-0"13'-6"15'-6"15'-6"4'-0"25'-10 3/8"8'-0"0$,16)2)),&(RFF#VI6)&/$665220RFF V#VI6)&/$665220RFF V#VI6)&/$665220RFF V#VI6)&/$665220RFF V#VI6)&200216RFF V#VI6)67$))/281*(RFF V#VI67$))6)2)),&(RFF V#VI&255,'25%2<6*,5/66)08/7,385326(RFF V#VI31'-6"29'-9"6'.DUFK,VVXH'DWH'UDZQ%\&KHFNHG%\5(9,6,2163030 County Road 101 NorthPlymouth, Minnesota 55447(763) 331-5178info@sdk-architects.com6+((75(9,6,213URMHFW6WDWXV 2026 SDK Architects LLCALL RIGHTS RESERVEDc7+,6'5$:,1*63(&,),&$7,21255(3257:$635(3$5(')25%,'',1*385326(621/<),1$/'(6,*1 '2&80(17$7,212)7+,63257,212)7+(352-(&7:,//%(&203/(7('%</,&(16(''(6,*1352)(66,21$/65(*,67(5(',17+(67$7(2)0,11(627$PR4)/2253/$1'(6,*1&21&(377HQDQW)LQLVK%XLOG2XWGood Shepherd Lutheran High School$8*6'.(ON5LYHU0LQQHVRWD,668('IRU&/,(175(9,(:21/< 'HVFULSWLRQ 'DWH1257+6&$/(  352326('7(1$17),1,6+/$<287 '(6,*1237,21 3Page 12 of 81 Good Shepherd High School Ordinance Amendment and Interim Use Permit Page 13 of 81 Location Map Page 14 of 81 Background §Applicant proposes establishing a school in the MU-ERP district. §Educational Uses are not permitted §Requires an ordinance amendment to add use. §Previous PC and CC discussions supported IUP §IUP requires approval of the ordinance amendment adding schools as an allowed use prior to approval. §Amendment included as condition of approval. Page 15 of 81 Zoning §MU-ERP was a PUD that was codified into ordinance §Mixed Use Elk River Plaza §The allowed uses are separated into three subzones §Subzone A – Multifamily Residential §Subzone B – Single-Family Residential §Subzone C – Commercial §Ordinance amendment would impact subzone C. Page 16 of 81 Page 17 of 81 Location Map Page 18 of 81 18,617 SF Page 19 of 81 8,000 SF Page 20 of 81 Background §School employs 2 full-time and 5 part-time staff. §Typical hours are M-F, 8:30 AM to 3:00 PM §Occasional evening or weekend activities §Ample parking as previous use was a movie theater. §Any future changes to layout or ownership would require a new IUP application. Page 21 of 81 Action Requested §Recommend, by motion, approval of an ordinance amendment adding “Educational Institutions” as an Interim Use in the MU-ERP district. §Recommend, by motion, approval of the IUP subject to the conditions noted in the memo. §CC will review on September 21 at 6:00 p.m. Page 22 of 81 The Elk River Vision A resilient, welcoming, and thriving community that leads through innovation, meaningful engagement, exceptional service, and responsible planning for future generations. Request for Action To Planning Commission Item Number 5.2 Meeting Date September 1, 2026 Prepared By Chris Leeseberg, Senior Planner Item Description Zone Change: Amend Zoning for Selected Parcels from Light Industrial (I-1) to Central Business District (C-1) Reviewed by Zack Carlton Action Requested Recommend, by motion, approval of the proposed zone change from Light Industrial (I-1) to Central Business District (C-1), establishing compliance with the adopted Comprehensive Plan. Background/Discussion In a recent review of the properties south of Meadowvale Elementary School, staff noted that the zoning of the subject parcels does not match the 2021 Comprehensive Plan/land use documents. The Comprehensive Plan serves as the long-range strategic visioning document, guiding orderly growth, public and private development, infrastructure investments, and resource protection for a 10–20 year window. The subject properties have had a land use designation of industrial since 1983 and were zoned residential until approximately the same time. In 2021, the city hired a consultant to update the Comprehensive Plan. The Comprehensive Plan Advisory Committee and city staff worked closely with the consultant to update the plan, which was adopted by the City Council on October 18, 2021. The plan documents recommended changing the land use of the subject area to better align with nearby residential homes, a day care, and a school, believing that due to changes in development patterns, industrial uses along a narrow strip of land between a 4-lane roadway and a residential district are no longer the best fit for the area. All current uses, except the landscape contractor yard, will be allowed under the proposed C-1 zoning. While the landscape contractor yard is not an industrial use in the conventional sense, it does utilize outdoor storage, which is not permitted in the C-1 zoning district. If the zone change is adopted, the use would be considered legal non-conforming and could continue to operate and/or be sold as a landscape contractor yard unless it has ceased operation for more than one year. Whether commercial or industrial, the uses of a given property must follow what is allowed under the city code. A recent application for a new use within the industrial property across the road from the subject area received significant opposition from the adjacent neighborhood. Primary concerns from the public related to Page 23 of 81 fumes and fuel storage related to an industrial area that is close to their residential neighborhood. With the adoption of the Comprehensive Plan in 2021, the city chose to guide the subject properties away from industrial uses in an effort to reduce potentially negative impacts to residential areas. Staff recommend the land use remain as Neighborhood Commercial and that the zoning should be updated to match the land use. Financial Impact None. Mission/Policy/Goal Appropriately govern in an ever-changing environment. Improve citizens quality of life. Attachments 1. Location Map 2. Current/Proposed Zoning Exhibit 3. Section 30-1022 C-1 4. Section 30-1292 I-1 5. Land Use Map (partial) 6. Chambers Investment Company - Letter to City of Elk River Planning Commission 7. Presentation Page 24 of 81 Page 25 of 81 Page 26 of 81 Created: 2026-08-17 00:16:48 [EST] (Supp. No. 65) Page 1 of 2 Sec. 30-1022. C-1 central business district. (a) Purpose. The C-1 central business district is appropriate for retail, service, and commercial uses to serve the shopping and service needs of the residents and surrounding community, as distinguished from highway commercial uses. The central business district is intended to encourage uses and designs that are consistent with the historic character of the central business district. Emphasis shall be placed on pedestrian access and design standards with flexibility to preserve the historic character of the central business district. Uses shall be designed to eliminate any nuisance or incompatibility with surrounding uses. (b) Permitted uses. Permitted uses in the C-1 district are as follows: (1) Bed and breakfasts establishments, non-homeowner-occupied (shall only be allowed in an existing single family residential structure). (2) Brewer taprooms, (producing less than 10,000 barrels of malt liquor annually). (3) Brewpubs. (4) Business offices. (5) Day cares. (6) Financial institutions. (7) Firearms, sale of. (8) Funeral homes. (9) Health care facilities, outpatient. (10) Hotels. (11) Personal service establishments. (12) Physical recreation or training. (13) Public parks. (14) Restaurants, class I. (15) Retail sales. (c) Accessory uses. Accessory uses in the C-1 district are as follows: (1) Parking lots. (2) Private recreational facilities. (3) Signs (as permitted in section 30-851 et seq.). (4) Structures, accessory. (d) Conditional uses. Conditional uses in the C-1 district are as follows: (1) Apartments (subordinate to the principal use). (2) Brewer taprooms, (producing less than 10,000 or more barrels of malt liquor annually). (3) Commercial recreational facilities. (4) Governmental facilities. (5) Health care facilities, inpatient. Page 27 of 81 Created: 2026-08-17 00:16:48 [EST] (Supp. No. 65) Page 2 of 2 (6) Hospital. (7) Kennel, commercial. (8) Liquor establishments, on-sale. (9) Motor vehicle service stations. (10) Nonprofit clubs, lodges or halls. (11) Religious institutions. (12) Residential, multiple-family (provided that business/commercial uses occupy the ground floor below the residential use). (13) Restaurants, class II. (14) Saunas, steam baths, and heat-bathing rooms. (e) Architectural standards. No provision of section 30-938 except subsection 30-938(2) pertaining to building materials applies to this district. (Code 1982, § 900.12(10); Ord. No. 02-04, § 2, 4-15-2002; Ord. No. 05-05, § 3, 3-21-2005; Ord. No. 05-08, § 1, 4-4- 2005; Ord. No. 07-07, § 2, 7-16-2007; Ord. No. 09-06, § 3, 7-20-2009; Ord. No. 12-11, § 2, 7-16-2012; Ord. No. 15- 03, § 3, 1-20-2015; Ord. No. 16-23, § 1, 11-7-2016; Ord. No. 18-03, § 1, 3-19-2018; Ord. No. 19-15, § 9, 8-19-2019) State law reference(s)—Similar provisions, Minn. Stats. § 462.357, subd. 1. Page 28 of 81 Created: 2026-08-17 00:16:49 [EST] (Supp. No. 65) Page 1 of 2 Sec. 30-1292. I-1 light industrial district. (a) Purpose. The I-1 district shall serve as a transition between more industrial uses and residential and other business uses. This district is appropriate for manufacturing, warehousing, and similar industrial uses because of access to warehousing, thoroughfares, the full complement of urban services such as sewer and water, and distance from residential districts. These areas are intended to encourage the development of industrial uses which are clean, quiet, and free of hazardous or objectionable elements such as noise, odor, dust, smoke, glare, or other pollutants. These industries shall be compatible with each other and with surrounding land uses. (b) Permitted uses. Permitted uses in the I-1 district are as follows: (1) Business offices. (2) Manufacturing, light. (3) Research and development facilities. (4) Warehouse spaces. (5) Wholesale businesses. (c) Accessory uses. Accessory uses in the I-1 district are as follows: (1) Cocktail rooms. (2) Parking lots. (3) Retail sales. a. The retail sales activity is not located in an administrative office facility, but is located within a business, the principal use of which is not commercial sales. b. The retail sales activity does not occupy more than 15 percent of the gross floor area of the occupied quarters. c. The retail sales activity is accessory to the principal use. d. No sign identifying the retail sales is visible from the outside of the building. (4) Signs (as permitted in section 30-851 et seq.). (5) Structures, accessory. (d) Conditional uses. Conditional uses in the I-1 district are as follows: (1) Brewer taprooms. (2) Bus storage. Not to exceed ten buses, unless the property has direct access to an arterial or collector street. (3) Commercial cannabis cultivation, provided that: a. The proposed cultivation facility has all permits required for operation, including all permits required by the state of Minnesota under Minn. Stats. Ch. 342, as it may be amended from time to time. A conditional use permit under this section may issue before the grantee has obtained all necessary permits; however, the grantee shall submit proof of obtaining the necessary permits to the City of Elk River before any cultivation operations begin. (4) Commercial recreational facilities. (5) Dry cleaning establishments. Page 29 of 81 Created: 2026-08-17 00:16:49 [EST] (Supp. No. 65) Page 2 of 2 (6) Government facilities. (7) Landscaping contractor yards. (8) Microbreweries. (9) Motor vehicle, trailer, and/or equipment sales. (10) Outdoor storage (accessory to principal use). (11) Recycling processing centers. (12) Residential, single-family accessory to principal uses, provided that: a. The nature of the principal use of the property makes it necessary or highly desirable from both the property owner's and the city's perspective to have a 24-hour-a-day caretaker or security person reside on the property. b. The proposed dwelling unit is designed for and will be used exclusively by caretakers or security personnel responsible for the security of the property and the principal use thereof. c. The proposed building unit will be occupied by no more than two persons, neither of whom may be under 18 years of age. d. There will be only one dwelling unit per lot or, if one principal use is located on several adjoining lots, per principal use. e. The proposed dwelling unit will not exceed 800 square feet in size and will be located within a building serving the principal use of the property which is no less than 10,000 square feet in size. f. The principal use of the property is not of such a nature that it would be dangerous or hazardous to residents of the proposed dwelling unit. g. The proposed dwelling unit meets all other requirements of this Code and Minnesota Uniform Building Code for occupancy as a dwelling unit by a single family. The city council may, if it finds it necessary to do so for the protection of the health, safety and welfare of persons who may occupy the proposed dwelling unit, impose additional reasonable requirements or conditions on the construction and use of the dwelling unit. h. The conditional use allowing such a dwelling unit in an industrial zone is deemed to be unique to the principal use of the property and the ownership of the property and the principal use. Any conditional use permits granted under this section shall therefore automatically expire if the principal use of the property changes or the ownership of either the property or the principal use of the property changes. (e) Architectural standards. No provision of section 30-938 except subsection 30-938(2) pertaining to building finish and subsection 30-938(3) pertaining to roofs applies to this district. (Code 1982, § 900.12(14); Ord. No. 04-003, § 1, 1-20-2004; Ord. No. 05-03, § 1, 1-18-2005; Ord. No. 05-07, § 4, 4-4- 2005; Ord. No. 05-08, § 1, 4-4-2005; Ord. No. 07-07, § 5, 7-16-2007; Ord. No. 08-03, §§ 1, 2, 2-19-2008; Ord. No. 09-06, § 3, 7-20-2009; Ord. No. 10-12, § 1, 8-2-2010; Ord. No. 12-11, § 7, 7-16-2012; Ord. No. 15-03, § 6, 1-20- 2015; Ord. No. 16-16, § 3, 7-18-2016; Ord. No. 18-03, § 6, 3-19-2018; Ord. No. 24-06, § 2, 1-16-2024) Page 30 of 81 Page 31 of 81 August 27, 2026 City of Elk River Attn: Planning Commission, Zack Carlton, Community Development Director 13065 Orono Pkwy NW Elk River, MN 55330 Via E-Mail zcarlton@elkrivermn.gov Re: Proposed Rezoning of 12785 Elk Lake Road NW from I-1 Light Industrial to C-1 Central Business District Our Client: Chambers Investment Company Planning Commission Special Meeting - September 1, 2026 Dear Planning Commission Members: Our firm represents Chambers Investment Company, owner of 12785 Elk Lake Road NW (the “Property”). We submit this letter for the record concerning the City’s proposal to rezone the Property from I-1 Light Industrial to C-1 Central Business District. We request the Planning Commission table the proposed rezoning to allow sufficient time to analyze whether the City’s Comprehensive Plan should instead be brought into conformance with the Zoning Ordinance, rather than the other way around. In the alternative, we request the Planning Commission elect to rezone the Property to C-3, rather than C-1, which is more appropriate for the development pattern of the area. The Property has supported light industrial activity for decades, and the proposed rezoning to C-1 would impair the Property’s marketability in an area that is largely industrial in nature. I. Factual Background Our client’s family operated a business at the Property for decades. Chambers Investment Company continues to own the Property and leases it to light industrial tenants engaged in wholesale operations with associated outdoor storage. The longstanding use is consistent with the Property’s present I-1 zoning and has operated without issue. Relying on the Property’s established use and the City’s zoning representations, our client marketed the Property and entered into a purchase agreement on November 13, 2025. During due diligence, the buyer contacted the City regarding an old drainage easement and other City requirements. On January 12, 2026, the City issued a written zoning verification confirming that the Property was zoned I-1 Light Industrial and that its wholesale use complied with the City’s Zoning Ordinance and other applicable ordinances.1 The City later provided information 1 See Exhibit A enclosed herein. Page 32 of 81 August 27, 2026 Page 2 concerning the drainage easement without identifying any zoning obstacle to the proposed transaction. The City knew the Property was under contract and being evaluated for continued light industrial use. Nonetheless, on June 3, 2026, only weeks before the scheduled June 30 closing, City staff advised the buyer that “a change to a light industrial user would not be allowed without the land use amendment to reflect the zoning.”2 The buyer canceled the transaction one week before closing. When Mike Chambers then asked City staff on June 23 whether the Property could be marketed as light industrial, staff again confirmed that it was zoned I-1 and told him, “you are good to go.” The conflicting messages have caused demonstrable harm. Since the canceled sale, three additional prospective buyers have ended discussions after contacting the City. II. The Existing I-1 Zoning Governs Permitted Uses The Property is guided Neighborhood Commercial under the City’s Comprehensive Plan, which was updated in 2021. The Property is outlined in red in the below image. 2 See Exhibit B enclosed herein. Page 33 of 81 August 27, 2026 Page 3 The Comprehensive Plan guides the Property as Neighborhood Commercial, but the Property and the parcels immediately east are isolated from the broader pattern of surrounding land uses. A substantial area directly across Elk Lake Road NW is guided Industrial, reflecting the area’s historic light industrial character. Despite the future land use designation, the Property nevertheless remains zoned I-1 Light Industrial. That district permits business offices, light manufacturing, research and development facilities, warehouses, and wholesale businesses. The proposed buyer did not seek redevelopment or discretionary land use approval. It sought only to occupy the Property for permitted light industrial activity. Minnesota law distinguishes existing zoning requirements from long-range comprehensive-plan guidance. A permitted use may be established when it satisfies the applicable ordinance standards, and the City’s review is limited to determining compliance with those standards.3 By zoning the Property as I-1 Light Industrial, the City has “exercised its discretion and determined that [permitted uses are] consistent with the public health, safety, and general welfare and consonant with the goals of its comprehensive plan.”4 The City therefore has no authority to prohibit establishment of permitted I-1 uses unless and until the district is rezoned or the Zoning Ordinance amended.5 Because consistency with a future land-use designation is not an additional standard for a permitted use under the I-1 District, the City should not have treated that designation as a basis to bar a conforming change in user. The City’s representations directly interfered with our client’s ability to market and sell the Property, for which it has suffered substantial damages. III. The Proposed Rezoning Is Unnecessary and Premature On August 18, 2026, the City first notified our client by mail that the Planning Commission would consider a City-initiated rezoning at a September 1, 2026 Special Meeting.6 Before receiving that notice, our client intended to use the City’s ordinary process to request Planning Commission guidance on the relationship between the existing zoning and future land-use designation in context of present marketability of the Property. Part of that outreach would have included a case to amend the Comprehensive Plan to conform with the zoning, rather than rezone the Property to a misguided future land use designation. There is no demonstrated need to accelerate the rezoning. The inconsistency has existed since the Comprehensive Plan was updated in 2021, yet the City repeatedly confirmed the Property’s I-1 zoning while our client relied on those representations in an active sale. The city is also working with a consultant on a comprehensive review of the Zoning Ordinance and zoning districts, which is anticipated to be completed in early 2027. Under these circumstances, a site- specific rezoning at a special meeting is premature. The more reasoned course is to preserve 3 PTL, L.L.C. v. Chisago County Board of Commissioners, 656 N.W.2d 567, 571 (Minn. App. 2003). 4 Chanhassen Estates Residents Ass’n v. City of Chanhassen, 342 N.W.2d 335, 340 (Minn. 1984). 5 See id. (finding that designation of specific permitted uses in a zoning district is “conclusive”). 6 See Exhibit C enclosed herein. The City’s letter is dated August 14, 2026 but was not received by our client until August 18. Page 34 of 81 August 27, 2026 Page 4 the existing zoning and address the area comprehensively through the forthcoming planning process, with meaningful notice and participation by affected property owners. In addition, rezoning the Property and the easterly adjacent parcel to C-1 while such land is surrounded by land zoned and guided industrial to the south and land guided public/semi-public to the north has characteristics of unlawful spot zoning. “Spot zoning” applies to “zoning changes, typically limited to small plots of land, which establish a use classification inconsistent with surrounding uses and create an island of nonconforming use within a larger zoned district.”7 This is precisely what the City’s proposed rezoning would do—create an island of nonconforming use within a district presently zoned I-1 and historically used for industrial purposes. IV. Rezoning to C-3 Would Strike a More Appropriate Balance Between Commercial and Light Industrial Uses If the City is determined to rezone the Property, rezoning the Property to the C-3 Highway Commercial District is more appropriate than rezoning it to C-1 because C-3 expressly accommodates the type of commercially oriented, quasi-industrial activity that is consistent with the Property’s historic industrial use. The stated purpose of the C-3 district is not limited to traditional retail and service businesses. Rather, the district is specifically intended to accommodate “quasi-industrial and wholesale enterprises” that may not require an industrial setting but involve substantial customer contact.8 This purpose makes C-3 a more logical and flexible transition from the Property’s historic industrial use than the more conventional commercial character of C-1. The only property in the City zoned C-1 is located in the downtown area, which is appropriate given the C-1 District is “intended to encourage uses and designs that are consistent with the historic character of the central business district.” The Property is materially unlike property presently zoned C-1, and it makes little practical sense to establish a C-1 zone in an area sandwiched between industrial and public land users. The above image shows the only land we could locate zoned C-1 The uses allowed in C-3 reinforce the distinction. In addition to ordinary commercial uses, the district permits or conditionally allows motor vehicle service stations, carwashes, garden 7 Rochester Ass'n of Neighborhoods v. City of Rochester, 268 N.W.2d 885, 891 (Minn.1978). 8 City Code § 30-1024(a). Page 35 of 81 August 27, 2026 Page 5 centers, equipment rentals, contractor yards, light manufacturing associated with retail sales, ministorage, motor vehicle repair, motor vehicle specialty services, and other uses with operational characteristics commonly associated with industrial or service-commercial properties. These uses may involve equipment, vehicle activity, production, repair, storage, or outdoor operations that would not fit comfortably within a district intended primarily for lower- intensity commercial uses. C-3 therefore provides the City with an appropriate middle ground. It allows the Property to transition away from exclusively industrial zoning without disregarding its historic use, existing development pattern, and suitability for businesses that have both commercial and light- industrial characteristics. It also preserves municipal oversight because the more intensive quasi-industrial uses, including equipment rentals, contractor yards, light manufacturing, ministorage, and motor vehicle repair, require conditional use approval.9 That process allows the City to evaluate site-specific impacts and impose reasonable conditions rather than excluding potentially appropriate uses through an unnecessarily restrictive C-1 classification for an area that is light industrial in nature. Rezoning to C-1 would risk creating a mismatch between the zoning designation and the property’s physical and historical context. By contrast, C-3 recognizes that some properties are best suited for a broader combination of retail, service, wholesale, automotive, and quasi- industrial uses. Given the historically industrial nature of the Property, C-3 would provide greater flexibility for productive reuse while maintaining its commercial orientation and allowing the City to regulate potentially more intensive activities through the conditional use process. Accordingly, C-3 represents the more reasonable and economically practical zoning designation. V. Rezoning Would Not Eliminate the Existing Use It is worthwhile to mention that regardless of a rezoning, the existing retail and wholesale operation with outdoor storage may subsequently continue. The City’s notice of the rezoning to our client stated that the future land-use designation “takes priority when the city reviews proposed uses and development of the property” and that the current retail and wholesale operation with outdoor storage would no longer be allowed in the C-1 District. Even if the rezoning is approved, however, the existing lawful use would remain protected as a legal nonconforming use. Minnesota law protects nonconforming use rights against a municipality’s zoning authority. Minnesota Statutes section 462.357, subdivision 1e(a), protects a lawful use existing when an additional zoning control is adopted. Such a use may continue, including through repair, replacement, restoration, maintenance, or improvement, subject to the statute’s limitations on expansion, discontinuance, and destruction. The Minnesota Supreme Court has otherwise held that a municipality can only terminate nonconforming use rights by the power of eminent domain or by written agreement or waiver of the property owner.10 The City Code likewise recognizes that nonconforming rights attach when an ordinance amendment creates the nonconformity.11 Those rights would run with the Property, and City 9 City Code § 30-1024(d). 10 White v. City of Elk River, 840 N.W.2d 43, 51 (Minn. 2013). 11 City Code § 30-701. Page 36 of 81 August 27, 2026 Page 6 Code section 30-695 permits a nonconforming use to change to another nonconforming use of the same or a more restricted classification. Rezoning therefore would not remove the existing use. It would instead create a legal nonconformity, reduce regulatory clarity, and further burden the Property’s marketability. Minnesota courts have long recognized that the significance of common law property rights requires zoning ordinances to be construed strictly against municipalities and in favor of property owners.14 Consistent with that principle, courts and legislatures generally permit lawful nonconforming uses to continue, even while limiting their expansion.15 This longstanding policy reflects a strong preference for protecting vested property rights and preserving a property owner's ability to continue an existing nonconforming use. VI. Requested Action For these reasons, Chambers Investment Company respectfully requests that the Planning Commission table the item for further discussion at a later date to allow both the City and our client more time to analyze the future land use designation for the Property, including whether such land use designation should be brought into alignment with the zoning, rather than the other way around. It may also be prudent for the Planning Commission to simply defer action until the City’s upcoming comprehensive-planning process can evaluate the area as a whole and affected property owners have a meaningful opportunity to participate. In the alternative, if the City is determined to rezone the Property now, we respectfully request the new zoning classification be C-3, rather than C-1, which better aligns with the historical and existing uses in the area and permits greater use flexibility. While our client believes I-1 zoning is appropriate for the Property, C-3 zoning would at least preserve some quasi-industrial uses and wholesale operations that are consistent with surrounding areas. Because such uses would be conditional, the City would have the ability to regulate or review such uses through the conditional use permit process. While our client wishes to collaborate with the City on the above issues, the City’s interference with our client’s ability to use and sell the Property is unacceptable. By advising prospective Our client was also informed that nonconforming use rights would terminate after 6 months of discontinuance of a use, starting from June 2026. We seek clarification from the City on the basis for this position since the existing use of the Property would not be considered legally nonconforming until an actual adverse zoning chance occurs, which has not yet happened. Second, City Code Section 30-694(a) follows Minnesota law requiring that a use be discontinued for a period of 12 months before losing legal nonconforming status, not 6 months.12 Municipalities lack authority to shorten the period of discontinuance for termination of nonconforming use rights, and any attempt to do so would be expressly preempted by state law.13 12 City Code § 30-694(a) (“If a nonconforming use of any building or premises is discontinued or its normal operation stopped for a period of 12 months, the use of the building or premises shall thereafter conform to the regulations of the district in which it is located.”) 13 Minn. Stat. § 462.357. subd. 1e(a). 14 Frank's Nursery Sales, Inc. v. City of Roseville, 295 N.W.2d 604, 608 (Minn.1980). 15 Krummenacher v. City of Minnetonka, 783 N.W.2d 721, 726 (Minn.2010) Page 37 of 81 August 27, 2026 Page 7 purchasers that the Property’s user may not be changed for a lawful industrial use, the City has already caused significant financial harm. And by ignoring the nature of nonconforming use rights that would attach following a rezoning, the City has compromised our client’s expectations for use of private property. The City has further compounded that harm by incorrectly asserting that nonconforming use rights expire after 6 months, despite the Property currently being located in a conforming zoning district and the City’s own Zoning Ordinance providing otherwise. Our client would prefer not to escalate these issues or seek judicial intervention to enforce the plain language of applicable law and the City’s Zoning Ordinance. However, our client cannot stand by while the City’s actions unlawfully diminish the Property’s permitted uses, marketability, and value. We appreciate the Planning Commission’s consideration. Please include this letter and its exhibits in the record. If you have questions, please contact me directly at (952) 896-1559. Sincerely, Tamara O’Neill Moreland, for Larkin Hoffman Direct Dial: 952-896-6711 Direct Fax: 952-842-1749 Email: toneill@larkinhoffman.com *MSBA Board Certified Specialist in Real Property Law Attachment Sincerely, Craig W. Hardie, for Larkin Hoffman Direct Dial: (952) 896-1559 Direct Fax: (952) 842-1713 Email: chardie@larkinhoffman.com cc: Mike Chambers, Chambers Investment Company (mchambers1@hedberghome.com) Chris Leeseberg, Senior Planner (cleeseberg@elkrivermn.gov) 4907-3295-0218, v. 3 Page 38 of 81 Phone: 763.635.1000 Fax: 763.635.1090 www.ElkRiverMN.gov January 12, 2026 Via Email Land Title Inc. csanow@landtitleinc.com 2200 County Road C West, Suite 2205 kwald@landtitleinc.com Roseville, MN 55113 Re: Zoning Letter – 12785 Elk Lake Road NW, Elk River, MN 55330 Dear Cole Sanow; We have received your request for zoning verification of the above referenced property. 1. The zoning designation is I1 – Light Industrial and ordinance (Sec. 30-1292) is attached. 2. There are no variances, conditional use permits, or special use permits issued for the property. 3. The use of the property as a wholesale business complies with the zoning code and other applicable city ordinances. 4. The abutting zoning districts are: a. North – Single Family Residential (R1c) b. East – Light Industrial (I1) c. South – Light Industrial (I1) d. West – Single Family Residential (R1c) 5. There are no overlay districts on the subject parcel. 6. As of January 12, 2024, there are no outstanding zoning code, building, or fire violations. 7. FEMA flood information is attached. 8. The property is not located in any local or national historical preservation district. This information was researched by the undersigned, upon request, by you. The undersigned certifies that the above information is believed to be accurate based on or relating to the information supplied, and to the best of their knowledge, however, neither the undersigned nor the City assumes liability for errors and omissions in the provision of the above information. All information was obtained from public records which may be inspected by you during regular business hours. EXHIBIT A Page 39 of 81 If you have any further questions, please feel free to contact me at 763.635.1033 or cleeseberg@ElkRiverMN.gov Sincerely, Chris Leeseberg Senior Planner Encl. Page 40 of 81 Created: 2025-09-17 17:10:34 [EST] (Supp. No. 64) Page 1 of 2 Sec. 30-1292. I-1 light industrial district. (a) Purpose. The I-1 district shall serve as a transition between more industrial uses and residential and other business uses. This district is appropriate for manufacturing, warehousing, and similar industrial uses because of access to warehousing, thoroughfares, the full complement of urban services such as sewer and water, and distance from residential districts. These areas are intended to encourage the development of industrial uses which are clean, quiet, and free of hazardous or objectionable elements such as noise, odor, dust, smoke, glare, or other pollutants. These industries shall be compatible with each other and with surrounding land uses. (b) Permitted uses. Permitted uses in the I-1 district are as follows: (1) Business offices. (2) Manufacturing, light. (3) Research and development facilities. (4) Warehouse spaces. (5) Wholesale businesses. (c) Accessory uses. Accessory uses in the I-1 district are as follows: (1) Cocktail rooms. (2) Parking lots. (3) Retail sales. a. The retail sales activity is not located in an administrative office facility, but is located within a business, the principal use of which is not commercial sales. b. The retail sales activity does not occupy more than 15 percent of the gross floor area of the occupied quarters. c. The retail sales activity is accessory to the principal use. d. No sign identifying the retail sales is visible from the outside of the building. (4) Signs (as permitted in section 30-851 et seq.). (5) Structures, accessory. (d) Conditional uses. Conditional uses in the I-1 district are as follows: (1) Brewer taprooms. (2) Bus storage. Not to exceed ten buses, unless the property has direct access to an arterial or collector street. (3) Commercial cannabis cultivation, provided that: a. The proposed cultivation facility has all permits required for operation, including all permits required by the state of Minnesota under Minn. Stats. Ch. 342, as it may be amended from time to time. A conditional use permit under this section may issue before the grantee has obtained all necessary permits; however, the grantee shall submit proof of obtaining the necessary permits to the City of Elk River before any cultivation operations begin. (4) Commercial recreational facilities. (5) Dry cleaning establishments. Page 41 of 81 Created: 2025-09-17 17:10:34 [EST] (Supp. No. 64) Page 2 of 2 (6) Government facilities. (7) Landscaping contractor yards. (8) Microbreweries. (9) Motor vehicle, trailer, and/or equipment sales. (10) Outdoor storage (accessory to principal use). (11) Recycling processing centers. (12) Residential, single-family accessory to principal uses, provided that: a. The nature of the principal use of the property makes it necessary or highly desirable from both the property owner's and the city's perspective to have a 24-hour-a-day caretaker or security person reside on the property. b. The proposed dwelling unit is designed for and will be used exclusively by caretakers or security personnel responsible for the security of the property and the principal use thereof. c. The proposed building unit will be occupied by no more than two persons, neither of whom may be under 18 years of age. d. There will be only one dwelling unit per lot or, if one principal use is located on several adjoining lots, per principal use. e. The proposed dwelling unit will not exceed 800 square feet in size and will be located within a building serving the principal use of the property which is no less than 10,000 square feet in size. f. The principal use of the property is not of such a nature that it would be dangerous or hazardous to residents of the proposed dwelling unit. g. The proposed dwelling unit meets all other requirements of this Code and Minnesota Uniform Building Code for occupancy as a dwelling unit by a single family. The city council may, if it finds it necessary to do so for the protection of the health, safety and welfare of persons who may occupy the proposed dwelling unit, impose additional reasonable requirements or conditions on the construction and use of the dwelling unit. h. The conditional use allowing such a dwelling unit in an industrial zone is deemed to be unique to the principal use of the property and the ownership of the property and the principal use. Any conditional use permits granted under this section shall therefore automatically expire if the principal use of the property changes or the ownership of either the property or the principal use of the property changes. (e) Architectural standards. No provision of section 30-938 except subsection 30-938(2) pertaining to building finish and subsection 30-938(3) pertaining to roofs applies to this district. (Code 1982, § 900.12(14); Ord. No. 04-003, § 1, 1-20-2004; Ord. No. 05-03, § 1, 1-18-2005; Ord. No. 05-07, § 4, 4-4- 2005; Ord. No. 05-08, § 1, 4-4-2005; Ord. No. 07-07, § 5, 7-16-2007; Ord. No. 08-03, §§ 1, 2, 2-19-2008; Ord. No. 09-06, § 3, 7-20-2009; Ord. No. 10-12, § 1, 8-2-2010; Ord. No. 12-11, § 7, 7-16-2012; Ord. No. 15-03, § 6, 1-20- 2015; Ord. No. 16-16, § 3, 7-18-2016; Ord. No. 18-03, § 6, 3-19-2018; Ord. No. 24-06, § 2, 1-16-2024) Page 42 of 81 National Flood Hazard Layer FIRMette 0 500 1,000 1,500 2,000250 Feet Ü SEE FIS REPORT FOR DETAILED LEGEND AND INDEX MAP FOR FIRM PANEL LAYOUT SPECIAL FLOOD HAZARD AREAS Without Base Flood Elevation (BFE) Zone A, V, A99 With BFE or Depth Zone AE, AO, AH, VE, AR Regulatory Floodway 0.2% Annual Chance Flood Hazard, Areas of 1% annual chance flood with average depth less than one foot or with drainage areas of less than one square mile Zone X Future Conditions 1% Annual Chance Flood Hazard Zone X Area with Reduced Flood Risk due to Levee. See Notes.Zone X Area with Flood Risk due to Levee Zone D NO SCREEN Area of Minimal Flood Hazard Zone X Area of Undetermined Flood Hazard Zone D Channel, Culvert, or Storm Sewer Levee, Dike, or Floodwall Cross Sections with 1% Annual Chance 17.5 Water Surface Elevation Coastal Transect Coastal Transect Baseline Profile Baseline Hydrographic Feature Base Flood Elevation Line (BFE) Effective LOMRs Limit of Study Jurisdiction Boundary Digital Data Available No Digital Data Available Unmapped This map complies with FEMA's standards for the use of digital flood maps if it is not void as described below. The basemap shown complies with FEMA's basemap accuracy standards The flood hazard information is derived directly from the authoritative NFHL web services provided by FEMA. This map was exported on 1/5/2026 at 9:54 PM and does not reflect changes or amendments subsequent to this date and time. The NFHL and effective information may change or become superseded by new data over time. This map image is void if the one or more of the following map elements do not appear: basemap imagery, flood zone labels, legend, scale bar, map creation date, community identifiers, FIRM panel number, and FIRM effective date. Map images for unmapped and unmodernized areas cannot be used for regulatory purposes. Legend OTHER AREAS OF FLOOD HAZARD OTHER AREAS GENERAL STRUCTURES OTHER FEATURES MAP PANELS 8 B 20.2 The pin displayed on the map is an approximate point selected by the user and does not represent an authoritative property location. 1:6,000 93°35'45"W 45°19'28"N 93°35'8"W 45°19'2"N Basemap Imagery Source: USGS National Map 2023 Page 43 of 81 436107 436107 COUNT ( RIDONDE? SHERBURNE CO. MINN. / MIGHELLE ASHE ; EPUTY “OL MIRY 14 PM 12 qu Ir MEMORANDUM OF LEASE AGREEMENT THIS MEMORANDUM OF LEASE AGREEMENT, entered into as of May 1, 2001, by and between CHAMBERS INVESTMENT COMPANY, a Minnesota general partnership (“Landlord”), and BROCK WHITE COMPANY, LLC, a Wyoming limited Hability company (“Tenant”). RECITALS: A. Landlord and Tenant have entered into a certain Lease dated as of May 1, 2001 (the “Lease”), whereby Landlord has agreed to lease to Tenant, the premises, together with the improvements thereon, located at 12758 Elk Lake Road, in the City of Elk River, Sherburne County, Minnesota, legally described on Exhibit A, attached hereto and made a part hereof (the "Premises'). B. The parties wish to give notice of the existence of the Lease. NOW, THEREFORE, in consideration of the sum of One and 00/100 Dollar ($1.00) and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 1. Landlord and Tenant have entered into the Lease to lease and to demise the Premises. 2. The initial term of the Lease is for a period of five years, commencing on May 1, 2000 and ending on April 30, 2006. 3. Tenant has the option to extend the term of the Lease for two additional terms of five years each, each additional term to begin at the expiration of the preceding term, provided Tenant notifies Landlord in accordance with the terms of the Lease of its intention to extend. Page 44 of 81 436107 4, Tenant has a right of first refusal to purchase the Premises during the Term (which includes al] renewals) of the Lease. 5. This Memorandum of Lease Agreement has been executed and delivered by the parties for the purpose of recording and giving notice that a contractual relationship for the leasing of the Premises has been created between Landlord and Tenant in accordance with the terms, covenants and conditions of the Lease. 6. The terms and conditions of the Lease are incorporated by reference into this Memorandum of Lease Agreement as if set forth fully herein. IN WITNESS WHEREOF, the parties have executed this Memorandum of Lease Agreement as of the day and year first above written. LANDLORD: CHAMBERS INVESTMENT COMPANY Name ix ié hatp Cham Berns Its aR uce TENANT: BROCK WHITE COMPANY, LLC Name Rican b. Carlen Its PAve— Qt STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) ‘The foregoing instrument was, acknowledged before me this TP ay of May, 2001, by KCC ALS, ihe CARPAL of CHAMBERS INVESTMENT COMPANY, a Minnesota general partnership, on behalf of the general _ “Cul pth Ng "Notary Public fe ry Sg Page 45 of 81 436107 STATE OF MINNESOTA _ ) ) ss. COUNTY OF HENNEPIN ) of BROCK WHITE of the limited liability e fo eons pa ment wag acknqwledged before me this iit | day of May, 2001, by Kirin ih ithe Vi Rl fet COMPANY, a Wyoming DG Hl. company, on beha “em ROSEANNE M. HOPE Soe ef NOTARY PUBLIC: MINNESOTA 7 My Comnssnon Expres Jan 31, 208 : Notary Public | THIS DOCUMENT WAS DRAFTED BY: Dorsey & Whitney P.L.L.P. (RMH/mlb) Pillsbury Center South 220 South Sixth Street Minneapolis, Minnesota 55402-1498 Page 46 of 81 436107 EXHIBIT A That part of the Northeast Quarter of the Southeast Quarter of SecEtsn 29, Township 33, Range 26, lying northerly of the Northerly Line cof the right-of-way of Ceunty State Aid Highway No. 1. Together with that part of the Northwest Quarter of the Southwest Quarter of Section 28, said Township 33. Range 2&8, lying north of said Noctherly Line of the highway right-of-way, and lying west of a line described as Commencing at the Northwest corner of said Northwest Quarter of the Southwest Quarter of Section 28; thence on an assumed bearing of East along the North line therecf for 260.89 feat to the actual Point of Beginning of the Line to be hereby described: thence South 0 degrees, 03 minutas, 30 seconds West for 271.80 feet, moze or less. to intersect with and terminate at seid Northerly line cf the highway right-of-way, Containing 6.28 acres, more or Less. Subject to and together with an easement for driveway purposes over and acrogs the North 33.00 feet of that part of the North Half of said Southwest Quarter of Section 28, lying west of the Westerly line of the right-of-way of the Burlington Northern Railroad Company; and over and across the North 33.00 feet of that part of said Northeast Quacter of the Southeast Quarter of Section 23, lying nortierly of said Nartherly Line of the highway right- of-way. Also subject to cther easements of record, if any. Together with an easement for roadway purposes over and across that part of said North Half of the Southwest Quarter Lying west of seid railroad right-of-way, lying east of a line 66.00 feet west of, aS measured at right angles tc, said railroad right-of- way, and lying north of said Northerly line of the highwey right-of-way. Also tagetker with an easement for roadway purposes cver end across the South 33.00 feet of that part of the South Half of the Nerthwest Quarter of said Section 28 lying west of suid Westerly line af the right-of-way of the Surlingten Nerthern Railroad Company {formerly the Creat Northern Ratlwayj; and cover and ecress the South 33.00 feet of that pect of the Southeast Quarter of the Noxstheast Quarter of said Section 29 lying northeasterly of said Northeasterly Line of the right-of-way of County State Aid Highway No. 1. Also subject to dreinage easements to the City of Elk River ever and across that part of said Northwest Quarter of the Southwest Quarcer of Section 28, deseribed as follows: Commencing at said Northwest corner cf said Northwest Quarter of the Southwest Quarters of Sactien 28: thence on an assumad bearing of East along the Nerth Line thereof for 860.89 feet to the actual Point of Beginning of the easement to be hereby described; thence South 0 degrees, 08 minutes, SO seconds West for 271.80 feet, more or less, to intersact said Northerly line of the highway right-cf- way; thence nocth ¢9 degrees, 51 minutes, 10 seconds West along said highway right-of-way for 89.00 feet; thence Norch 0 degrees, 08 minutes, SO seconds Fast for 44.00 feet; thence North 25 degrees. 30 minutes, 12 seconds East for 207.82 feet, more or less, to said Point cf Beginning. And over and acrogs that part of said Nocthwest Quarter of the Scuthwest Quarter of Section 28, and over and across thet part of said Northeast Quacter af the Southeast Quarter of Section 29, both lying northerly of said Northerly line of the highway right-of-way, described as follaws: Page 47 of 81 436107 | Beginning at said Nucthwest cerner of the Northwest Quarter of the Southwest Quarter of Section 28; thence on an assumed bearing of East along the North line thereof for 215.00 feet: thence South 35 degrees, O00 minutes, 00 seconds East for 164.00 feet; thence South 50 degraes. 50 minutes, QC second East for 213.48 feet, ar or less, to intersect sald Northerly line of the highway right-of-way; thence North 83 degrees, Sl minutes, 10 seconds West along saic highway cight-of-way for 104.96 feet: thence continue westerly along said higiway right-of-~ay being a -angen- tial curve concave te the north, radius 1213.24 feat, for a central angle of 39 degees, 03 minutes, Li seacends, a:: length 626.96 feet, mare or less, to intersect the North line of said Northeast Quarter of the Southeast Quarter ef Section 23; thence South §$ degrees. 38 minutes, 06 Seconds East along gaid Nerth line of the Nertheast Quarter of the Southeast Quarter for 392.96 feet, marc2 or less, to the Point of Beginning. acco.ding ta the United Statex Government Survey therect and situate in Sherburne County, Ninnescotea. Page 48 of 81 Hi Mike, Below are the last two emails my planner received from Chris. Yes, the property is currently zoned industrial, but the city told me (via email below) that they will not support a change in user without a comp plan amendment or rezoning. Sa atanaatata Forwarded message --------- From: Chris Leeseberg <CLeeseberg@elkrivermn.gov> Date: Wed, Jun 3, 2026 at 4:35 PM Subject: RE: 12785 Elk Lake Rd. NW - Property Inquiry Hi Jennifer, We discussed this and confirmed a change to a light industrial user would not be allowed without the land use amendment to reflect the zoning. One of two things needs to happen on this property: 1. Aland use amendment to reflect the current zoning. 2. Azone change to reflect the current land use. Again, | am not sure if the council would be supportive of an industrial use for this parcel. If interested, here is information to make an application to amend the Land Use: PLEASE READ THIS EMAIL IN ITS ENTIRETY to ensure you submit the correct application All Planning Department applications are now online. Here is a link to the page which provides general information regarding applications. Select “Apply for Land Use Application” on the right-hand side of the page. EXHIBIT B Page 49 of 81 tiga ls Led eh egeen hg Land Use Applications and Deldlines Utilizing CitizenServe - syeait ated mueetiecca apes APPLY FOR Sentient tee, LAND USE APPLICATION thee Plovtenp Decariierd Coat # f reas. Las Mahe appeals, pag tees verdiracs tha reatcess: tatu ef thers app abies uthekale sanbive pred oss PAY FOR Hawe questions about using CislzenServe? ZONING LETTER Hesoe contort the Plarinita Se pretreat et TH. 625 WO, VIEW OUR APPLICATION FEES & SCHEDULE Select “Submit an Application” in the PLANNING APPLICATIONS box. PLANNING APPLICATIONS in. Expioen fuplicalions anf Poos A Vow My Anglications A. Sutil an Application @ View Mocting Schodulns & Deadlines If you have not already, you will be required to create an account once you start the application process. To Apply Once in the portal, under "Planning Department - Land Use Applications" select "APPLY FOR A LAND USE APPLICATION" and then from the “Project Type” dropdown menu (pictured below), choose: e Comprehensive Plan/Land Use Amendment . Page 50 of 81 &% APPLY FOR A PROJEC Hoapoee sea y Dh Wee hug aden baby fae ete artopianed atepead Please make sure you select the proper Project Type. Unfortunately, we cannot reassign “project types” after you submit. If an incorrect one is selected, you will be required to resubmit the application with the correct “project type”. The only time you should select the project type “Comprehensive Plan/Land Use Amendment” is when you are requesting to amend the city comprehensive plan. Please do not mistake this as a generic land use application, as it is a very specific application seldom used. The next application deadline is June 29, 2026. With a complete application, the request would be reviewed by the Planning Commission on July 28, 2026. If the PC acts on it then, it will be reviewed by the City Council on August 17, 2026. Please note, applying for an amendment does not guarantee it will be approved. Again, please make sure you select the proper Project Type and you have made payment. Please let me know if you have any questions. Thank you Chris Leeseberg City of Elk River - Senior Planner 13065 Orono Parkway, Elk River, MN 55330 763.635.1033 ElkRiverMN.gov From: Chris Leeseberg Sent: Wednesday, June 3, 2026 11:01 AM Subject: RE: 12785 Elk Lake Rd. NW - Property Inquiry Page 51 of 81 Community Development 13065 Orono Parkway NW Elk River, MN 55330 7$3.635.1000 ElkRiverMN gov AUzuSt 74, 2026 White Cap 12785 Elk Lake Road NW Elk River, MN S5330 Chambers Investment Company 255 Maple Lene NW Big Lake, MN 55309 RE: Land Use and Zoning Map Discrepancy and Proposed Rezoning To whorn it may concern: The city of Elk River has identified a discrepancy between the cin/s Comorehensive Plan Land Use Map and Zoning Map affecting your property and several properties in the surrounding area. Your property is currently zoned Light industrial (1-1). However, the 2024 Comprehensive Plan guides the property for Neighborhood Commercial (NC} land use. The designation takes Priority when the city reviews prapased uses and development of the praperty. The current Retail end Wholesale operation with outdoor storage will no longer be an allowed use in the district To correct this discrepancy and bring the zoning for your property into alignment with the adopted Comprehensive Plan, the city intends to initiate a rezoning fram '-1 to C-1, for your grogerty. The jist of allowed uses in C-1 zoning district is attached We will schedule the first public hearing with the Planning Commission on September 7, 2026, and a City Council review on September 21, 2026. You will be notified by mail of the meetings acd vill have an Opportunity lo paricipare in the process and provide comments. Ifyou have questions regarding your property, the Comprehensive Plan designation, or the proposed raroning, please let me know. Sinceraly, Chris Leeseberg Senior Planner 763-635-1933 Cleesedergat letaves Mi geEXHIBIT C Page 52 of 81 SAINT PAUL My 550 J AUKG ZOSGFS HOSS nog Parken CIR kiteor, MASSE Chambers Investment Comapany 25 Péaple Lr NW Big Lake, MN 5369 i H ; BAHOU aT | TUT Pr CL ea ee oP a Page 53 of 81 Zone Change City of Elk River Page 54 of 81 Page 55 of 81 Background §Recent review §Zoning does not match the Land Use Plan §Long-range strategic visioning document, guiding orderly growth, public and private development, infrastructure investments, and resource protection Page 56 of 81 Background §Zoning and Land Use need to match for CUPs §CUPs cannot be approved §Standard #2: Will be consistent with the Comp Plan Page 57 of 81 Background §Zone residential until mid 80’s §Land Use has been Industrial since 1983 §Then amended in 2021 §Current Zoning is I-1 §Current Land Use is NC Page 58 of 81 Comprehensive Plan §Consultant hired to update the Comp Plan §Comp Plan Advisory Committee and staff worked closely with the consultant to update the plan §Adopted by the City Council on Oct 18, 2021 Page 59 of 81 Comprehensive Plan §Recommended changes to better align with nearby residential homes, day care, and school Page 60 of 81 Comprehensive Plan §Due to changes in development patterns, §Industrial uses in a narrow strip of land between a 4-lane roadway and a residential district are no longer the best fit for the area Page 61 of 81 Zoning - CUPs §I-1 allows with a CUP: §Motor vehicle, trailer, and/or equipment sales §Recycling processing centers §Outdoor storage (accessory to principal use) §Commercial recreational facilities §Commercial cannabis cultivation §Microbreweries/brewer taprooms §Bus storage Page 62 of 81 Comprehensive Plan §City chose to guide the subject properties away from industrial to reduce potentially negative impacts to adjoining residential areas Page 63 of 81 Page 64 of 81 Existing Uses §All current uses, except the landscape contractor yard, will be allowed under the proposed C-1 zoning §If the zone change is adopted, contractor yard would be legal non-conforming, and §Could continue to operate and/or be sold as a landscape contractor yard unless it has ceased operation for more than one year Page 65 of 81 History §Recent review of an industrial use across the road which received significant opposition from the adjacent neighborhood §Primary concerns from the public related to: §Noise §Fumes and fuel storage with that industrial area near their residential neighborhood Page 66 of 81 Public Comment §Unnecessary and premature §CUPs cannot be approved with mismatch §C-1 is spot zoning §Central Business District is suited to be adjacent to residential zoning §Suggested C-3 would be better zoning §Highway Commercial is for properties adjacent to major highways Page 67 of 81 Public Comment §Rezoning does not eliminate existing use §Correct, it can continue as a legal non-conforming landscaping contractor yard Page 68 of 81 Summary §Both Land Use and Zoning need to match §If zoning is left as I-1 §The land use needs to be amended §If zoning of C-3 is desired: §The land use needs to be amended (not able) §If land use left as NC §The zoning needs to be amended §The recommendation to follow 2021 adoption Page 69 of 81 Page 70 of 81 Action Requested §Staff recommend the land use remain as NC and that the zoning should be updated §Recommend, by motion, approval of the proposed zone change from Light Industrial (I-1) to Central Business District (C-1), establishing compliance with the adopted Comprehensive Plan Page 71 of 81 City Council Meeting §If acted on, this item will go to the September 21, 2026, City Council meeting Page 72 of 81 The Elk River Vision A resilient, welcoming, and thriving community that leads through innovation, meaningful engagement, exceptional service, and responsible planning for future generations. Request for Action To Planning Commission Item Number 5.3 Meeting Date September 1, 2026 Prepared By Chris Leeseberg, Senior Planner Item Description Ordinance Amendment: Cottage Food Exemption to the Residential Occupation Standards Reviewed by Zack Carlton Action Requested Recommend, by motion, approval of the ordinance amendment allowing cottage food sales as a residential occupation. Background/Discussion Staff have received numerous inquiries over the past several months regarding the sale of cottage food products from residential properties. Under the current Residential Occupations Ordinance, Section 30-801, on-site sales are prohibited unless they are incidental to the services provided. For example, a home-based hair salon may sell hair care products as an incidental component of its services. Wholesale or retail sales are permitted when conducted entirely through courier, mail, or email. Staff updated the City Council with the growing interest from residents in allowing cottage food sales from residential properties. In response, the City Council directed staff to amend Section 30-801 to establish an exception to the prohibition of onsite sales related to cottage food businesses registered with the state. Financial Impact None. Mission/Policy/Goal Meet changing needs - agile. Attachments 1. Draft Ordinance Language 2. Presentation Page 73 of 81 Created: 2026-08-17 00:16:46 [EST] (Supp. No. 65) Page 1 of 3 Sec. 30-801. Residential occupations. (a) Purpose. The purpose of this section is to provide a means, through the establishment of specific standards and procedures, by which residential occupations can be conducted in residential neighborhoods, without jeopardizing the residential character or health, s afety, and general welfare of the surrounding neighborhood as well as the users of the property. In addition, this section is intended to provide a mechanism enabling a distinction between permitted residential occupations and interim residential occupations, so that permitted residential occupations may be allowed through an administrative process rather than a quasi-judicial hearing process. (b) Prohibited activities. No residential occupation (permitted or interim) shall: (1) Be conducted by an individual who does not reside on the property and uses the residence as a primary address for legal purposes. (2) Operate between the hours of 7:00 p.m. and 7:00 a.m. Monday through Saturday and all day on Sunday. a. Exception. Permitted residential occupations as outlined in section 30-801(c). (3) Reduce the dimensions of accessory structure space, used for garage purposes, to less than 440 square feet where dimensions of 20' × 22' must be maintained. (4) Constitute a fire hazard to neighboring residences, adversely affect neighboring property values, or constitute a nuisance or otherwise be detrimental to the neighbors because of excessive traffic, noise, glare, odor, electrical interference, vibration, dust and other nuisance or safety hazards. (5) Involve any of the following: a. Ammunition manufacturing. b. Body shops. c. Escort businesses. d. Flea markets. e. Gun repair and/or sales. f. Hazardous materials or activities, as defined by the Minnesota State Building Code. g. Machine shops. h. Motor vehicle repairs, with the exception of parcels in the R1-A district on lots ten-acres or larger. i. Motor vehicle sales. j. Repair of internal combustion engines. k. Sexually oriented land uses. l. Wholesale or retail business, unless conducted entirely by courier, mail, or email. m. Welding. (6) Have signage greater than four square feet. (7) Adversely affect governmental facilities and services, including roads, sanitary sewers, water, storm drainage, garbage service, police and fire service, sensitive environmental features, including lakes, Page 74 of 81 Created: 2026-08-17 00:16:46 [EST] (Supp. No. 65) Page 2 of 3 surface water and underground water supply and quality, wetlands, slopes, floodplains, and soils, or other. (c) Permitted residential occupations. Permitted residential occupations (occupation) shall be allowed subject to the conditions of this section, other applicable city ordinances, and state laws and statutes. Permitted residential occupations must satisfy the following criteria: (1) The occupation shall be carried out entirely within the dwelling unit. (2) No noise, lights, odors, dust, gas, heat, vibration, glare, or other physical manifestations resulting from the occupation shall be evident beyond the boundaries of the property on which the occupation is being conducted. (3) Use equipment which is not normally found in a home (such as, but not limited to, stationary power tools and salon seats), except that equipment which is typically in an office may be used. (4) The occupation shall not require internal or external construction features not customarily found in single-family residential dwellings. (5) A maximum of one full-time employee, or equivalent, other than those persons who customarily reside on the premises shall be employed. (6) Occupations involving teaching shall not exceed two pupils at a time. (7) Occupations shall not be serviced by delivery vehicles larger than 26,000 pounds gross vehicle weight. (8) Occupations shall not create a parking demand more than that which can be accommodated in an existing driveway or approved surface area, where no vehicle is parked closer than 15 feet to the curb line or edge of the paved surface nor is parked within any right-of-way. (9) On-site sales shall be limited to those clearly incidental to the services provided or to cottage food sales registered through the Minnesota Department of Agriculture. (10) There shall be no exterior evidence of the occupation such as displays or exterior storage of business equipment, materials, merchandise, inventory, and/or heavy equipment. (d) Interim residential occupations. Residential occupations that do not involve prohibited activities but do not satisfy the permitted residential occupation criteria may be allowed with approval of an interim use permit by the city council pursuant to the provisions of subdivision III of d ivision 2 of this article. (1) The council may impose such specific conditions with regard to the proposed use as it considers necessary to promote compatibility with and minimize any potentially adverse effects upon adjacent properties, the neighborhood, or the city. (2) Outdoor storage must satisfy the following criteria: a. Shall be in the R1-A district on lots five acres or larger. b. Shall follow section 30-807. c. Shall be setback 50-feet or more from all existing residential structures on adjacent parcels. (e) Inspections. The city may at any reasonable time inspect the residential occupation to determine if the applicant is strictly adhering to the criteria for a permitted residential occupation or the conditions placed on an interim residential occupation. (f) Revocation or expiration of an interim use permit for residential occupations. (1) An approved interim use permit shall terminate when the property is sold or when a lease has expired. (2) Expirations of interim residential occupations shall be as set forth in section 30-656. Page 75 of 81 Created: 2026-08-17 00:16:46 [EST] (Supp. No. 65) Page 3 of 3 (3) Revocation of interim use permits for residential occupations shall be as set forth in section 30 -659. (g) Professional design services. The applicant shall engage the services of a person licensed pursuant to Minn. Stats., Ch. 326 to verify existing/new structures meet current commercial building codes based on the use. The exceptions set forth in Minn. Stats., § 326.03, subd. 2, and Minnesota Rules, part 1800.5900 shall apply to this section. (h) The property owner is responsible for the operations of the residential occupation and any liability related thereto. (Ord. No. 23-24, § 3, 11-20-2023) Editor's note(s)—Ord. No. 23-24, § 3, adopted November 20, 2023, repealed the former § 30-801, and enacted a new § 30-801 as set out herein. The former § 30-801 pertained to home occupations and derived from the Code of 1982, § 900.25; Ord. No. 05-09, § 2, adopted April 4, 2005; Ord. No. 14-16, § 1, adopted November 17, 2014; Ord. No. 19-11, § 1, May 20, 2019. Cross reference(s)—Licenses and business regulations, ch. 38. Page 76 of 81 Ordinance Amendment City of Elk River Page 77 of 81 Background §Numerous inquiries regarding selling cottage food products from homes §Currently §On-site sales prohibited with residential occupations §Staff updated the council with the growing interest §Directed staff to establish as an exception Page 78 of 81 Page 79 of 81 Action Requested §Recommend, by motion, approval of the OA allowing cottage food sales as a residential occupation Page 80 of 81 City Council Meeting §If acted on, this item will go to the September 21, 2026, City Council meeting Page 81 of 81