7.7. SR 08-15-1994
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ITEM 7 . 7 .
MEMORANDUM
MAYOR AND CITY COUNCIL
STEVEN B. ACH, CITY PLANNER.fiA.
AUGUST 15, 1994
SUBJECT: REZONING REQUEST BY THE CITY
OF ELK RIVER, PUBLIC HEARING,
CASE NO. ZC 94-02
TO:
FROM:
DATE:
ISSUE
Consider rezoning approximately fifteen (15) acres from 11 (Light Industrial)
to RIb (Single Family Residential).
ATTACHMENTS
Ordinance No. 94-_, Report to Planning Commission dated April 26, 2994,
Report to Planning Commission dated March 22, 1994.
BACKGROUND
On February 28, 1994, the City Council directed staff to initiate a request to
rezone approximately fifteen (15) acres lying north of Highway 10 and west of
Queen Street alignment from 11 (Light Industrial) to the RIb (Single Family
Residential). This rezoning would bring the zoning map into compliance with
the Comprehensive Land Use Plan map designation of MR (Medium Density
Residential). The Planning Commission has conducted two public hearings
on the requested rezoning and has recommended approving the rezoning
request. At the May 16, 1994, City Council meeting, the Council received
comments from the public before continuing this item for sixty (60) days.
OVERVIEW
This fifteen (15) acre parcel has had a series of Planning Commission and
City Council action over the past fifteen (15) years. Included in the attached
report to the Planning Commission is a summary of the history of Planning
Commission and City Council actions that relate to this property and
discussions regarding Custom Motors' compliance with their conditional use
permit and the long term land use of the subject property.
P.O. Box 490. 13065 Orono Parkway · Elk River, MN 55330 · (612) 441-7420 · Fax: (6]2) 44]-7425
Rezoning Request, City
August 15, 1994
Page 2
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In an attempt to clarify some of the historical events and current conditions
of the property, staff has outlined the following. This information has been
obtained from City records and/or through conversations with the property
owners.
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. Prior to November 1978 - a single family home was constructed on the
north half of the subject fifteen (15) acre parcel.
. November 3, 1978 - City Council approved rezoning the property from Al
(Agricultural Conservation) to 11 (Light Industrial) and granting a
conditional use permit for an auto salvage yard with mechanical repair,
body repair, and a truck dealership. both of these applications included a
legal description for only the south half of the subject parcel. In other
words, the current zoning map does not accurately reflect the zoning
approved by the City Council in 1978. For some reason, the zoning map
was amended to include the entire fifteen (15) acre parcel whereby it
should have included on the south seven (7), plus or minus, acres.
. December 1, 1978 - south 1,400 feet of the fifteen (15) acre parcel sold to
Clinton Olson, which effectively subdivided the property in a north half
and a south half. The deeds for this transaction were recorded August 1,
1985, just prior to the next sale of the property.
. August 25, 1985 - Mr. Olson sold the south 1,400 feet to Mr. & Mrs. Roy,
the current owners of Custom Motors.
. Sometime in 1993 - Mr. Boelter purchased the north half of the fifteen
(15) acre parcel, which includes the single family home. Mr. Boelter is
currently operating a towing service from one of the out buildings on the
property. This use requires a conditional use permit within the 11 (Light
Industrial) zoning district. Mr. Boelter has not applied for this permit at
this time and is considered a non conforming use.
Please refer to the attached Planning Commission report for additional
background information and discussion on the history.
COMPLIANCE WITH CONDITIONAL USE PERMIT
When Custom Motors' conditional use permit was originally approved in
1978, a condition pertaining to screening was included. Specifically,
evergreens or other appropriate plantings were to be installed around the
entire perimeter of the property.
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Over the years, the issue of screening has been raised several times. At this
time, the evergreens or "appropriate plantings" have not been installed.
Therefore, Custom Motors is not in compliance with their conditional use
custom. council
Rezoning Request, City
August 15, 1994
Page 3
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permit. Until appropriate screening is installed, Custom Motors will remain
in non compliance with their conditional use permit.
AVAILABLE FINANCING I RELOCATION
Staff has met with Custom Motors to discuss financing options as well as
alternative locations. Custom Motors' business is a conditional use in all 11
(Light Industrial) and 12 (Medium Industrial) zoning districts. Therefore, if
Custom Motors relocated their business to either of these zoning districts, a
conditional use permit could be applied for and considered by the City
Council.
COMPLIANCE WITH COMPREHENSIVE LAND USE PLAN MAP
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The rezoning to RIb (Single Family Residential) will bring the property into
compliance with the comprehensive land use plan map. Furthermore, with
the planned extension of the trunk water and sewer into the next phases of
the western area, development activity will continue and establishing
appropriate zoning designations will become more important. If the rezoning
is denied, Custom Motors' compatibility with the residential land uses on
both the west and east side will continue to be an issue for the City Council
and Planning Commission as the western area continues to develop.
CUSTOM MOTORS' PREFERRED OPTIONS
Custom Motors has indicated that they have three (3) options:
1. Stay at the present location and make improvements to the
building and landscaping.
2. City buy-out Custom Motors.
3. Negotiate a sale to relocate the business to another site.
Custom Motors' preference is to remain at the present location and not
relocated. In addition, they would like to pursue available financing
programs to improve their facility. Custom Motors has also indicated all
along that relocating their business is cost prohibitive.
Custom Motors' attorney, Robert Miller, may present a letter which, if
received in time, will be included with this memo.
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custom. council
Rezoning Request, City
August 15, 1994
Page 4
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AMORTIZATION PERIOD
If the City Council approves the requested rezoning, the zoning ordinance
currently allows a five (5) year amortization period before Custom Motors has
to vacate the property. Custom Motors has indicated that this five (5) year
period is not long enough for them to feasibly phase out their business at its
present location. Staff has indicated to Custom Motors that once the
rezoning issue is decided by the City Council, Custom Motors has the option
to request that the zoning ordinance be amended to extend the amortization
period to a period of greater than five (5) years. This code amendment would
have to be reviewed by the Planning Commission and approved by the City
Council to allow that period to be extended.
PLANNING COMMISSION RECOMMENDATION
The Planning Commission recommended approval to rezone the property
from 11 (Light Industrial) to RIb (Single Family Residential).
RECOMMENDATION
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It is recommended the City Council approve the rezoning request based on
the attached Ordinance No. 94-_. Moving forward with the rezoning at this
time will remove the uncertainty of Custom Motors future. As long as the
land use plan and zoning map are in conflict, there remains the possibility for
a future council to bring back a rezoning request. Staff believes it would be
in the best interest for both the City and Custom Motors to move forward
with rezoning the property and begin working on an agreeable amortization
period, alternative locations for relocating the business, and available
financial programs.
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custom.council
F~OM L~~KIH HOFFM~H O~LY LIHOG~EH 612-6963265
es. 13. 1994 0~n 13
P. 2
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ORDINANCE 94 -
CITY OF ELK RIVER
AN ORDINANCE REZONING CERTAIN PROPERTY WITHIN THE CITY
TO THE R-IB (SINGLE FAMILY RESIDENTIAL) ZONING DISTRICT
WHEREAS, the City Council of the City of Elk River has
initiated proceedings to amend the Zoning Ordinance of the City of
Elk River to rezone the property legally described on attached
Exhibit A hereto (the Property) to the R-1b, Single Family
Residential zoning district; and
WHEREAS, the Planning Commission of the City of Elk River has
held a public hearing on the proposed rezoning and has recommended
to the City Council that the Property be rezoned as proposed; and
WHEREAS, the City Council of the City of Elk River has also
held a public hearing on the proposal to rezone the Property and
. has taken testimony on the proposal from all persons desiring to be
heard on the matter; and
WHEREAS, the City Council has considered all of the materials,
testimony and other evidence presented by City staff and the public
with respect to the proposed rezoning;
NOW, THEREFORE, the City Council of the City of Elk River,
based on all of the materials, testimony and other evidence in the
record before it, makes the following Findings of Fact and adopts
the following Ordinance:
A. FINDINGS OF FACT
1. The Property was originally zoned A-I, Agricultural
Conservation District.
2.
On November 3, 1978, a portion of the Property was
rezoned from A-1 to 1-2, Medium Industrial District,
by the Elk River City Council.
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FROM L~~KIH HOFFM~H O~LY LIHOG~EH 612-6963265
05.13.1994 09' 13
P. 3
3.
The City Council also approved, on November 3, 1978, a
Conditional Use Permit permitting use of the rezoned
portion of the Property as a salvage yard, body shop,
mechanical repair area and truck dealership, subject
to certain conditions.
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4. Since 1978, various owners of the Property have failed
to fully comply with the conditions of the Conditional
Use Permit issued in 1978, including the specific
requirement to screen the Property used as a junk yard
from Highway 10 by landscaping or other effective
means to screen operations from public view.
5. The City has attempted to bring the Property into
compliance with this and other conditions of the
Conditional Use Permit on several occasions since
1978. These efforts have been unsuccessful in
achieving compliance with all of the requirements of
the Conditional Use Permit.
6. The Property remains at this date in violation of the
terms of the Conditional Use Permit.
7.
In 1980, the City adopted a "Generalized Land Use Map"
which designated the planned land uses for all land
within the City. The Generalized Land Use Map
designated the Property and surrounding land to the
east, west and north for medium density residential
uses.
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8_ In 1988, the City adopted a Comprehensive Plan,
entitled the Growth Management Plan. The Growth
Management Plan included a Land Use Plan, which
designate the planned land uses for all land within
the City."'The 1988 Land Use Plan designates the
Property and the surrounding land to the east, west
and north for medium density residential uses.
9. In 1990, the City did a series of Focus Area Studies
analyzing various areas of the City_ The Property is
immediately adjacent to "Focus Area A." The Focus
Area Study Report included a number of detailed
recommendations for the improvement and development of
Focus Area A. The existing industrial zoning and use
of the Property is inconsistent with these
recommendations.
10. The Property is surrounded on three sides, to the
east, west and north, by several hundred acres of land
zoned R-1b, and constitutes a spot zone within this
residentially zoned area of the City.
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2.
r~OM L~RKIH HOFFM~H o~LY LIHOG~EH 612-6963265
05.13.1994 09:14
P. 4
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11. The properties to the east, west and north of the
Property, in addition to being designated for
residential uses in the City's Land Use Plan and zoned
for residential uses pursuant to the City's Zoning
Ordinance and Zoning Map, are also used for
residential purposes.
12. The existing industrial zoning and industrial use of
the Property is inconsistent with the City'S
Comprehensive Plan and with the land use designation,
zoning and use of surrounding properties.
13. In addition to the inconsistency of the existing land
use on the Property with surrounding land uses and
development, industrial use of this property presents
a potential environmental threat to the surrounding
residential area and the Elk River. The City has
conducted'a limited environmental investigation of the
Property which has disclosed contaminated soils on
portions of the Property and the potential for
additional contamination. The proximity of the
Property to surrounding residential uses and the Elk
River makes it important that this contamination be
addressed. Rezoning the Property will expedite the
process of addressing these' environmental concerns.
.
14. Rezoning ~he Property to R-lb will bring the Property
into compliance with the City'S Comprehensive Plan and
Land Use Plan Map.
15. Rezoning the Property to R-lb will make the zoning of
the Property compatible with the existing R-1b zoning
and residential uses of the properties to the east,
west and north of the Property, a~~ establish
continuity and consistency of the zoning in this area
of the City.
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16. Increased development interest in the western part of
the City constitutes a change of circumstances and
conditions requiring that properties in this area of
the City be rezoned to the appropriate zoning district
so that development will be compatible with
surrounding development and consistent with the City'S
adopted Land Use Plan Map.
17. Rezoning the Property to eliminate the Industrial
zoning and use of the Property will conserve and
protect property values within this part of the City.
18. The City Council further finds that all procedural and
other requirements of Section 900.44 of the City Code
of Ordinances have been complied with in the
consideration and action on this rezoning proposal.
3.
.~oM L~RKIH HO..MRH ORLY LIHOG~EH 612-6963265
05.13.1994 09:15
P. 5
B. ADOPTION OF ORDINANCE
. The City Council of the City of Elk River, based upon the
Findings of Fact set forth above and all of the materials,
testimony and other evidence in the record before it, does hereby
ordain as follows:
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1. The Property described on Exhibit A attached
hereto shall be rezoned to the R-1b, Single
Family Residential, zoning district.
2. This Ordinance shall take effect upon publication
as provided by law.
Passed and adopted by the City Council of the City of Elk
River, this ____ day of
, 1994.
Henry A. Duitsman, Mayor
Attest:
Sandra Thackeray, City Clerk
PKB:JBOs
4.
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FROM l~RKIH HOFFM~H O~LY LIHOG~EH 612-8963265
EXHIBIT A
05.13.1994 09: 15
P. 6
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MEMORANDUM
fC@/pp/
TO:
PLAN1\"'ING COMMISSION
STEVEN B. ACH, CITY PLANNER ~
APRIL 26, 1994
FROM:
DATE:
SUBJECT: REZ01\"'ING REQUEST BY THE CITY
ELK RIVER, PUBLIC HEARING, CASE
NO. ZC 94-02
REQUESTED ACTION
Consider rezoning approximately fifteen (15) acres from 11 (Light Industrial)
to RIb (Single Family Residential).
ATTACHMENTS
.
Memo from Bill Rubin, Memo from Peter Beck, Letter from B.A. Liesch
Associates Inc., Updated Survey of the Fifteen (15) Acre Parcel, Report to the
Planning Commission dated March 22, 1994.
BACKGROU1\T))
This item was presented to the Planning Commission at their March 22,
,,. 1994, meeting, at which time the Commission delayed action until further
information pertaining to potential financial programs available to Custom
Motors and an updated legal opinion from the City Attorney were presented.
Attached are memos from Bill Rubin and Peter Beck addressing these two
lssues.
In addition, letters regarding the environmental testing conducted by B.A.
Liesch Associates, Inc., have been included. A complete report is available at
City Hall if any of the Commissioners would like to review this prior to the
meeting.
MEETING WITH AFFECTED PROPERTY OWNERS
Two weeks ago, staff met with the affected property owners to discuss the
proposed rezoning. At that time, potential financial programs were outlined,
an understanding of the history regarding the proposed site for the rezoning,
. and reasons behind the City's request to rezone the property were all
P.O. Box 490. 13065 Orono Parkway' Elk River, MN 55330 . (612) 44]-7420' Fax: (612) 441-7425
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Rezoning, City of Elk :H.iver
April 26, 1994
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Page 2
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discussed. Unfortunately, the meeting did not conclude with an agreement
by both parties to rezone the property. However, I believe a mutual
understanding of each parties interest were clearly understood.
ADDITIONAL INFORMATION
As presented at the last Planning Commission meeting, a rezoning of Custom
Motors was approved by the City in 1978. Upon further review, this rezoning
was to cover only the south 1,500 feet of the entire fifteen (15) acre parcel.
Essentially, the north half of this property has been mistakenly identified on
the zoning map as 11 (Light Industrial). Although this could be argued that
the zoning map should be corrected to accurately reflect the action taken by
the City, it would be appropriate to take formal action to correct this
oversigHt. Therefore, if the Commission decides not to rezone Custom.
Motors, action should be taken to rezone the north parcel.
Please refer to the attached staff report dated March 22, 1994, for further
information.
RECOMMENDATION
,
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Staff recommends the Planning Commission recommend approval of the
rezoning of the fifteen (15) acre site from 11 (Light Industrial) to RIb (Single
Family Residential) based on the following findings:
1. THE REZONING TO RIB IS IN COMPLIANCE WITH THE
ADOPTED COMPREHENSIVE LAND USE PLAN MAP
DESIGNATION OF MDR (MEDIUM DENSITY RESIDENTIAL)
AND HAS BEEN IDENTIFIED ON THE COMPREHENSIVE
LAND USE PLAN SINCE 1980.
2. THE INCREASED DEVELOPMENT INTEREST IN THE
WESTERN PART OF THE COMMUNITY SIGNIFIES A
CHANGE IN THE 'TIMESAND CONDITIONS WHEREBY THE
CITY NEEDS TO CONSIDER ESTABLISHING APPROPRIATE
LAND USE AND ZONING DESIGNATIONS FOR COMPATIBLE
DEVELOPMENT TO OCCUR.
3.
THE REQUESTED REZONING OF THE FIFTEEN (15) ACRE
PARCEL WITH ESTABLISH CONTINUITY AND
COMPATIBILITY WITH THE EXISTING SINGLE FAMILY
HOMES THAT CURRENTLY EXIST ON BOTH THE EAST AND
WEST SIDES OF THE SUBJECT PROPERTY Al'."'D ELIMINATE
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MEMORANDUM
River
TO:
STEVE ACH, CITY PLANNER
ELK RIVER PLANNING COMMISSION
FROM:
WILLIAM RUBIN, ECONOMIC
DEVELOPMENT COORDINAT~ Y1--
APRIL 1, 1994
DATE:
SUBJECT: POTENTIAL FINlillCING PROGRAMS:
CUSTOM MOTORS 13913 HWY 10
INTRODUCTION
1. Micro-Loan Fund
~~~
The Elk River EDA, in conjunction with the City of Elk River,
established its own micro-loan program to supplement primary
financing and business/owner equity associated with expansion and/or
relocation programs in the community. Loans may be used for fixed
assets (land, building, machinery, equipment) plus working capital and
industrial inventory. Retail inventory and the refinancing of existing
debt are ineligible uses.
The micro-loan program offers great flexibility. Loans may range from
$5,000 to $50,000, and, repayment is tied to the life of the asset that is
financed (land and building: 15-20 years; machinery and equipment: 7
years). The interest rate on the loan is tied to prime, but is subject to
periodic adjustments should the prime rate fluctuate.
.
As loans are repaid, the principal and interest is returned to the micro-
loan pool so that additional business loans can be made.
P.O. Box 490. 13065 Orono Parkway. Elk River, MN 55330 . (612) 441-7420 . Fax: (612) 441-7425
-)
Rezoning, City of LIK River
April 26, 1994
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Page 3
_..~____R_____________________________
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THE INTRUSION OF LIGHT INDUSTRIAL ZONING FROM
THIS AREA.
4.
BASED ON RECENT ENVIRONMENTAL ASSESSMENT OF
THE PROPERTY, SOME SAMPLING AND ANALYTICAL..
TESTING HAS INDICATED A POTENTIAL HEALTH AND
SAFETY CONCERN FOR NEIGHBORING PROPERTIES AND
FUTURE DEVELOPMENT CONSIDERATIONS.
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zccustom.planning
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2.
Central Minnesota Initiative Fund
The Initiative Fund is a private, non profit corporation dedicated to
strengthening the economy and enhancing the quality of life in the
fourteen-county Central Minnesota area. The initiative program
provides supplemental loan assistance to small businesses and also
provides grants to non-profit organizations. Business loans range from
$5,000 to $100,000 with the majority of the project funds coming from
private investments (primary lender and company equity).
3.
SBA 504 Loan
This is a fixed-asset mortgage program to help small businesses
achieve long-term, low-interest financing for expansion and/or
relocation projects. The acquisition of land and the purchase and/or
construction of buildings are typically financed under the 504
Program. The option to finance machinery and equipment under this
program is available, too.
4. Tax Increment Financine-
This is a locally administered grant program that xelies on future
property tax payments to fund specific development activities such as
site acquisition, . site preparation cost, demolition of blighted
structures, and the clean-up of polluted property. Because new
restrictions continue to be placed on the use of TIF, its availability in
Elk River is subject to an on-going evaluation.
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5. Industrial Revenue Bonds
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State and Federal law enables cities to issue long-term below-market
bonds or mortgages to assist commercial and industrial expansions.
Because the IRB is sold by the municipality, the bond issue is
considered tax-exempt and this low interest is passed on to the
expanding company in the form of a mortgage that is well below.
current market rates. The company's credit worthiness is
instrumental in determining the interest rate. Real estate can be
financed over 20 years, equipment at 10 years - not to exceed the
useful life of the asset being financed. Soft costs such as architectural
fees and legal fees may also be included in the bond issue.
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6. Small Business Development Loan
This loan is administered through the Minnesota Agricultural and
Economic Development Board. It makes small business loans through
the issuance of industrial revenue bonds backed by a State-funded
reserve of 25%. This reserve helps lower the interest rate on the
mortgage. Funds can be used for real-estate fmancing as well as
equipment purchases.
7. Environmental Clean-Up Funds
Twenty-five percent (25%) of the surcharge the City collects from the..
Elk River Landfill is designated for landfill abatement. These funds
could be used to accomplish environmental clean-up on the Custom
Motor site, avoiding disposal at a landfill.
8.
Summary
Most of the programs listed above can be used in conjunction with one
another. That is, an EDA micro-loan can be used to supplement, say,
conventional financing (or SBA financing) and business/owner equity.
If TIF is utilized, a new or expanding business may be reimbursed for
such things as land acquisition costs, site preparation costs, on-site
utility extensions, and off-site utility extensions, etc. Using more than
one financing program provides an additional benefit to the company
as it ensures that a competitive package is being offered. This, in turn,
helps the company preserve its funds for other needs such as working
capital, etc.
ACH-br
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MF:MORA/'.;'DUM
TO:
FROM:
DATE:
LARKIN, HOFFMAN, DALY & LINDGREN, LTD.
Attorney. at Law
1500 NO!"'\olle.st PinanC::1al Center
7900 Xerxe, Avenue South
BloomingtOn, Minne,oLl 55431
Telephone: (612) 835-3800
PAX: (612) 896-3333
RE:
Elk River Planning Commission
Peter Beck, City Attorney
April 22, 1994
Custom Motors
This memorandum is to respond to Steve Ach's request for an
update of my September 23, 1983, opinion with respe.ct to the
proposed rezoning of the Custom Motors site. In preparing this
response I have reviewed the September 23, 1983, letter, as well
as the March 22, 1994, staff report on the proposed rezoning of
the Custom Motors site.
The staff report Bets forth three findings fo~ the proposed
rezoning of the Custom Motors site:
1. Rezoning to R-1B is in compliance with th~ City's
Comprehensive Land Use Plan. .
2. Increasing development in the western part of the City
has created a change in circumstances.
3. Proposed rezoning will establish continuity and
compatibility with development that is occurring around
the property.
In 1983 I advised the City that it was within the City's
legislative authority to rezone the Custom Motors site from
Industrial to ReSidential, assuming that the procedures and
findings for such a rezoning set forth in the Zoning Ordinance
were followed. It continues to be my opinion that the City is
within its authority in rezoning this property to bring it into
consistency with the City's adopted ComprehenSive Land Use Plan
and the development and use of the surrounding area. .
At Steve Ach's request I will attend the Planning Commission
meeting on April 26, 1994, and will be happy to answer any
questions you may have.
Attachment
cc: Steve Ach
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September 23, 1983
0" c.OUNSC'"
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Io.IN'I .J. ".iIIIl:.TONIC
Mr. Robert C. Midd~ugh
City Administrator
City of Elk River.
505 O.P.A. Drive
Elk River, Minnesota 55330
Re: Custom Motors Site
Dear Boo:
This letter is in response to your request tor our opinion with respect
to the proposed rezoning of the Custom Motors site.
BACKGROlJN"D
It is our understanding that the Custom Motors site is located in an
are~ of the City of Elk River (the City) which is primarily residenti~l
and which is designated by the City's land use map'for residential use.
However, the Custom Motors site itself was re~oned from A-l, Agricultura
Conservation District, to 1-2 Medium Industrial District, by the city
Council on November 3, 1978, and retains this zoning designation at the
present time. The City Council also, on November 3, 1978, grented a
Conditional Use Permit to Custom Motors permitting use of the site as
a salvage yard, bodyshop, mechanical repair area and truck dealership.
The Conditional Use Permit was granted subject to certain conditions,
the most significant of which is appropriate screening. It is our
understanding that the site has been used as a salvage yard, body shop ,
mechanical repair area and truck dealership in the period since 1978,
and that, while there was some delay in doing so, the required screening
ha~ now been put in place.
You have advised us that the Planning Co~mission, in connection with a
comprehens~ve review of nonconforming, inconsistent and inappropriate
land uses ~n the City, has determined that the industrial use of the
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CITY/ELK RIVER ~~~ L~lN HOF~~
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Mr. RObe~t C. Middaugh
City Administrator
September 23, 1983
Page Two
Cu~tom Mptors site is inconsistent with the City's land Use map and
is an inappropriate Use in this residential area of the City. The
Planning Commission has there!ore recommended that the site be rezoned
from industrial to residential. Your question is Whether there would
be any legal restrictions on such a rezoning.
ISSUE
May the City reZOne from industrial to residential uses a parcel of
land located in an area of the City designated for residential Use
by the City's land Use map, and. actually Used primarily fOr
residential purposes, where the City only five years previoUsly rezone
the property to Industrial and issued a Conditional Use Permit
permitting specific industrial Uses on the"property?
DISCUSSION
The City clearly has a right to carryon comprehensive municipal plann n9
activities (such as the preparation of a land Use map), and to impleme t
zoning regulations, pursuant to Minnesota Statutes SS 465.353 and 465. 57.
The Minnesota Courts haVe consistently held that zoning activities are
legislative matters and that re20nings are legislative acts which will
be sustained unless arbitrary, capricious or unreasonable. See: Kiae
v. City of St. Paul, 62 N.W.2d 363 (1953); and Barton ConstrUCtion o.
Inc'. v. City at Afton, 268 N.W.2d 712 (1978). ThJ.s s true even t oug'
zonJ.ng activJ.tJ.es may place substantial restrictions on the use of
orODsrty (see: MCShane'V. City of Faribault, 292 N.W.2d 253 (1980)) or
hav~ an adverse effect on property values. (~l county of Ra~sey v.
Stevenl5.' 283 N.W.2d 918 (1979)).
The law in this state is that no property owner has a Vested right in
the current zoning of his property. (See: Prooert Research and Develo m~nt
Co. v. City or Eagan, 289 N.W.2d 157 (r980) . As long as a zon ng
ordinance bears a reasonable relationship to pUblic health, safety
or welfare, the COurts will not interfere with the legislative determin tian
of a muniCipaly in zoning matters. '(~: Perron v. Vil1aqe of New
Briqhton, 145 N.W.2d 425 (1966)).
APPly these principals to the issue preSented by the proposed rezoning
of the Custom Motors site, it is our conclusion that there is no legal
prOhibition against the proposed rezoning, assuming that it is being
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LARKIN, HOFFMAX, DALY & LINDGREN, LTD.
Robert C. Middaugh
City Administrator
September 23, 1983
Page Three" . . . . . . . .
.
proposed and is implemented ;for the purpose of protecting the public
health, safety and welfare.
It is clear that the City has the legislative authority to implement
the proposed rezoning, and that the rezoning will be appropriate
and upheld if it is not arbitrary, capricious or unreasonable. The
fact that the property was zoned industrial just five years ago, and t at
a Conditional Use Permit permitting the current use was granted at tha
time, may give rise to an argument that rezoning the property at this
time is arbitrary, capricious and unreasonable. However, if the
City can demonstrate a change in circumstances since 1978, and can
show that the proposed rezoning to residential is reasonably related
to the public health, safety and welfare, the rezoning would be upheld'
if challenged. We teel that it is signifioant that this proposed rezon'ng
arises out of a comprehensive review of nonconforming, inconsistent and
inappropriate uses throughout the City, and that it is proposed in
connection with several other rezonings of a co~rective nature.
Our opinion also assumes that the nonconforming use sections of the
city Zoning Ordinance will apply to the Custom Motors site if it is
rezoned, and that the present use of the site will be permitted to
continue subject to the restrictions set forth in those sections of the
Ordinance.
t.!...
Please call i~ you have any questions.
~~, L
pet~K. Beck., for
LP.RKIN, HOFFMAN, DALY & LINDGREN,'LTD.
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Llc~CH
B.A. LIESCH ASSOCIATES, INC. 13400 1STH AVE. N. MINNEAPOLIS, MN 55441 612/559-1423 FAX: 612/559-2202
January 18, 1994
Mr. Mike Boelter
600 Highway 10
Elk River, MN 55330
RE: Results Recent Testing of your Wells
Dear Mr. Boelter:
Enclosed is a copy of laboratory analytical results from your water supply wells which we
recently collected. The data from Legend Technical Services, Inc. shows no volatile organic
compounds (Va C) were detected in either well. .
Lead was detected in both wells at concentrations slightlv above the recommended allowable
limit (RAL) for drinking water of 0.020 mg/I established b the Minnesota De ar.:ment or
~ ea tn. hIS standard was recently revised downward from 0.050 mg/I. Lead can OCcur rom .'_
a variety of Sources and is naturally occurring to some extent. At this time, we do not believe
the lead in your water supply is from Custom Motors as no VOC compounds. were detecled
which are anticipated to migrate faster than lead. Other possible Sources of lead are pipe solder,
suspended solids or on-site sources.
~!~
You may wish to consider using bollled water or filtering your drinking water. RALs are
established based on a lifelime of exposure, usually 70 years, assuming a consumption of two
(2) liters per day of water, and then set at some risk level where a fraction of the population
IVould experience some health effect usually the one in one hundred thousand or one in one
million level.
Should you have any questions, please contact Steve Rohlf or me. Thank you.
,
Sincerely,
B.A. LIESCH ASSOCIATES, INC.
,
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Yo'hn Lichler, P.E.
cc: Mr. Steve Rohlf
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LIi:S-CH
'="" B.A. LIESCH ASSOCIATES. INC. 13400 15TH AVE. N. MINNEAPOLIS. MN 55441 612/559-1423 FAX: 612/559-2202
MEMORANDUM
'"
TO:
THE CITY OF ELK RIVER
JOHN LICHTER, B.A. LIESCH ASSOCIATES &4J
JANUARY 21, 1994
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FROM:
DATE:
RE:
CUSTOM MOTORS SITE SCREENING AND ASSESSMENT
Recently, Liesch was requested to conduct reconnaissance soil sampling at this property
on Highway lO. Testing and groundwater monitoring of off-site wells adjacent to this
Property was also completed. A report dated November 17, 1991 was submitted which
summarizes the results of soil testing on the Property. Follow-up groundwater
monitoring was completed in December 1993. This work was initiated based on the
City's desire to determine environmental conditions on the Property and how these
conditions may affect potential future land use.
Assessment activiri'es to date appear to indicate environmental impacts are predominantlx
limited to surficial soils in high activity areas, including, but not limited to, the engine
and transmission storage area, vehicle processing areas and traffic pathways. Soils in the
vicinity of typical automobile storage areas do not appear to be problematic, as field
screening measures and analytical test results did not indicate parameters above detection
iimits, although some minor staining was observed in these areas.
Additional soil sampling and analytical testing would be required to confirm
reconnaissance soil sampling findings. as well as to further define the ex;:ent imd
magnitude of impacts already identified, in padcular, the processing g';;'::'"ge and
engine/transmission storage area. Additionally, TCLP analyses may be required on soils
with high lead levels to evaluate mitigation and disposal options (to determine if the soils
would be regu lated as hazardousr:~rhere is also the possibility of localized gL.Qund>.\!3ter
contamination suggested bv data from the engineltransmlsslon storage area.- permeability
of soils, and anticipated shallow depth to ground water. _
-
To evaluate off-site groundwater impacts, Liesch tested two wells on the Boelter property
north and anticipated down gradient of the Custom Motors site. These tests did not find
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Page 2
January 21, ] 994
any evidence of volatile organic compounds (VOCs) in either well. Lead was present
slightly above the recommended allowable limit (RAL) for drinking water, however,
based on available data Collected to date, Liesch does not believe this is associated with
the Custom Motors operation.
To mitigate environmental concerns on the Custom Motors parcel, several items must be
considered.
1. Work completed by Liesch was a screening effort to identify possible problem
areas and does not delineate the c.omlpete areal extent of CO:1!2.rr'.in::tion. Fu...'"thcr
work is needed to accomplish this.
2. . Custom Motors has implemented several management practices to reduce
environmental problems but it appears additional items should be considered.
These include the use of concrete pads to retain vehicle fluids, conducting certain
operations under roof, preventing run on into vehicle disassembly areas and other
methods to prevent vehicle fluid loss.
3.
Some soil and possibly limited groundwater remediation may be necessary to
achieve environmental standards for residential development. The Minnesota
Department of Health has recently established a soil lead level of 300 mg/kg for
residential areas. Data from Liesch's work suggests soil lead levels in some areas
of the site significantly exceed this value (up to 9400 mg/kg near the garage).
Implementation of additional containment measures, further soil assessment and limited
soil clean-up at this time would minimize further contamination and provide expectations
of meeting the goal of possible residential use for the Propeny.
maw:ENV/64102/memo12194.Wp
,
B.A. LIESCH ASSOCIATES. INC.
13400 15TH AVENUE NORTH
MINNEAPOLIS. MINNESOTA 55441
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ITEM 8
MEMORANDUM
TO: PLANNING COMMISSION
FROM: STEVEN B. ACH, CITY PLANNER~L-
DATE:
MARCH 22, 1994
SUBJECT: REZONING REQUEST BY THE CITY
OF ELK RIVER, PUBLIC HEARING,
CASE NO. ZC 94-02
REQUESTED ACTION
Consider rezoning approxllnately 15 acres from Il (Light Industrial) to RIb
(Single Family Residential).
LOCATION
North of Highway 10 along the Queen Street alignment.
,
,
ATTACHMENTS
Location Map, Zoning Map, Land Use Plan Map, Property Owners List
OVERVIEW
The rezoning involves two separate properties, Que of which is owned by Mr.
& Mrs. Roy (Custom Motors) and the second by Jerry Gallati. The second
parcel mentioned above currently is occupied by a truck repair business and a
single family home.
BACKGROUND
The property under consideration for rezoning has a long history with the
County and, since consolidation in 1978, with the City of Elk River.
According to City records and an understanding of actions that have taken
place over the years, the following historical synopsis has been compiled:
· October 30, 1978 - Planning Commission recommended approving
rezoning and conditional use permit for a salvage yard containing a body
shop, mechanical repair area, and truck dealership.
· November 3, 1978 - City Council approved rezoning and conditional use
permit as recommended by the Planning Commission. (This conditional
use permit was issued to the entire 15 acre site)
P.O. Box 490' 13065 Orono Parkway' Elk River. MN 55330. (612) 441-7420' Fax: (612) 441-7425
Zone Change, Custom Motors
March 22, 1994
Page 2
.----------------------------------------
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· December 1, 1978 - South 1,400 feet of subject property is sold to Clinton
Olson.
· November 6, 1981 - The City Council discussed screening requirements
for Custom Motors in compliance with conditional use permit.
. March 1, 1982 - The City Council discussed Custom Motor's compliance
with conditional use permit.
. July 12, 1982 - The City Council was. updated on Custom Motor's
compliance with conditional use permit.
· August 1, 1985 - Deeds were recorded effectuating the sale to Mr. Olson in
1978. This action created two separate parcels.
· August 27, 1985 - Mr. Olson sells south 1,400 feet to the current owners,
Mr. & Mrs. Roy.
. May 18, 1992 - The City Council directs the Pl;mning Commission to
review the issue of rezoning Custom Motors.
· June 23, 1992 - The Planning Commission recommends delaying the
rezoning of Custom Motors until an action plan is prepared by Custom
Motors and presented for review.
· July 20, 1992 - The City Council was informed of the Planning
Commission discussion to request an' action plan be prepared.
. August 25, 1992 - The Planning Commission reviewed the action plan and
continues consideration to the September 1992 mee:ting.
. September 22, 1992 - The Planning; Commission reviewed the action plan
prepared by Custom Motors and concluded the long range goal should be
residential for this area, screening should occur in the near future, and
that Custom Motors should begin evaluating alternative sites for
relocation.
· October 19, 1992 - The City Council reviewed the action plan and directed
staff to research alternatives for relocation and funding opportunities.
Also, before any funding is granted, a phase two audit would be necessary.
. November 9, 1992 - The Economic Development Authority concluded that
the City should identify potential sites and possible funding opportunities
for Custom Motors.
· September 20, 1993 - The City Council authorizes environmental testing
and will consider the screening issue in April, 1994.
· February 28, 1994 - The City Council recommended initiating a rezoning
of the 15 acre parcel from II (tight Industrial) to RIb (Single Family
Residential).
~."I-
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ANALYSIS
.
Since 1980 the affected property has had a comprehensive land use of MDR
(Medium Density Residential). This land use did not change in 1988 or 1990
when the City considered amendments to its Comprehensive Plan. Clearly,
the Comprehensive Plan has been to maintain a predominant land use of
pczccm.doc
Zone Change, Custom Motors
March 22, 1994
Page 3
.
residential for that area lying north of Highway 10 towards the City's
western limits. With growing interest for development in the western part of
the City, it is appropriate to establish land use and zoning designations to
prevent conflicts with upcoming planning applications.
AMORTIZATION PERIOD
If the Planning Commission and City Council approve the requested
rezoning, a five year amortization period will begin for the operation of
Custom Motors' (south parcel). On the other hand, it is not exactly clear
what type of activity, when uses were established, if lot splits were approved,
or when the existing single family home was built on the northerly parcel.
Regardless of these issues, the northerly parcel is either currently non-
conforming or will become non-conforming and an amortization period of 40
years will begin. I hope to have more information related to this issue
available at Tuesday's meeting.
RECOMMENDATION
.
Staff recommends the Planning Commission recommend approval of rezoning
the 15 acre site from II (Light Industrial) to RIb (Single Family Residential)
based on the following findings:
1. The rezoning to RIb is in compliance with the adopted Comprehensive
Land Use Plan designation ofMDR (Medium Density Residential).
2. The increased development interest on the western part of the
community signifies a change in the times and conditions whereby the
City needs to consider establishing the appropriate land use and
zoning designations.
3. The requested rezoning will establish continuity and compatibility
with development that is occurring on both the east and west sides of
the subject property and eliminate the island of light industrial zoning
from this area.
,.
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LOCATION MAP
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P.O. Bo;;: 490 . 13065 Orono Parkway. E..1c Rive~. MN 55330 . (612) ~1-i4.20
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LAND USE MAP
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PROPERTY OWNERS LIST
CUSTOM MOTORS - ZONE CHANGE
l. 75-131-1211
Sandra Roy
28008 152nd Street
Zimmerman, MN 55398
2. 75-131-1210
Jerry Gallati
18738 Queen Street
Elk River, MN 55330
3. 75-131-1200
Marlin Moon
13841 Highway 10
Elk River, MN 55330
4. 75-131-1205
. Lorraine WIlite
18746 Troy Street
Elk River, MN 55330
5. 75-131-4200
Hoyt Partners Ii'"
c/o Stewart Wilson
Box 277
Elk River, MN 55330
6. 75-131-4205
Sherburne County
c/o Dave Loch
13880 Highway 10 "
Elk River, MN 55330
7. Wilfred Gagne i.('
1415 East Wayzata Bl~a.. .,
Wayzata, MN 55391 0,\,
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AUG 12 94 FR7 10.~8
~ .~ ROBT Ml:LLER LAW OFFl:CE
P.02
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ROBERt J tAILI.EF-l
GEOF'AF.'v-, "'HI"~
ROBERT J. MILLER LAW OFFICES. P.A.
9405 . 36th Avenue North
New Hope, MN 55427
(612) 542.3030
FAX, 542-316\
August 12, 1994
File No. 14617. S
L.EGAl "'S51$1 ANT
"'OLl ~ v TAOM8L.&'Y
H(m~)rable Mayor and
<.:uuncil Members
Elk River City Hall
P.O. Box 490
l306:, Orono Parkway
Elk River, loiN 55330
R.~: ,Joseph and Sandy ROy
Custom Motors
l)<;:aJ Mayor and council Members:
As you may know our office represents Joseph and Sandy
Roy/custom Motors.
We met with Steve Ach and William Rubin regarding the
suble<:t of the Roy's auto recycling yard on Highway 10. In
try.ng to address the matter, the undersigned has run throuqh
his mind several potential approaches.
~S~!,..r io A: The zoning classification remains as it is.
The ROYS would make fencing, screening, and
esthetic improvements over a three year period.
The improvements would consist of installing
vinyl privacy slats in the cyclone fencing (also
some fence replacement or repairl, installing
planting and doing some repainting and cosmet i "
clean-up in the front yard. Our cost estima tE'
is around $75,000.00, and we would perform the
work over a three-year period. If we could
qualify under the small-loan program of the City,
it might be possible to accelerate some part
of the work depending upon the amount and
availability of such funds.
In addition we would restrict the front yard
to vehicles not being recycled.
:;,.:l""~..r:.i.()].: The same as above, but if the City feels comJ."') I,'.)
to J:C20ne ~hc,,;: ~rut-''''':' ~.yt Lil'.... p.lvi.J.....l.tj' ~')~ :..;:::' I
AUG-12-94 FRI
10:39 ROBT MILLER LAW OFFICE
P.03
.
Honorable Mayor and
council Members
August 12, 1994
Pag(~ l
to Residential, but without a provision requiring
the five-year amortization period.
If no amortization period were enforced, the
use could continue as a lawful non-conforming
use and natural economic and development forces
would apply to the property in the normal course
of events. There are many residential develop-
ment restraints affecting the property which
staff is aware of from our discussion-narrowness
of lot, flag lot next door, etc.
If an amortization period were enforced, it would
be incumbent on the land owner to challenge thE1
validity of the amortization period in Court
to avoid arguments such as waiver, estoppel,
detrimental reliance, etc.
. .:;cl,n..rio C: A third option would be to have the City acquire
the property as part of a redevelopment or other
program. possibly the City could create a TIF
district (or utilize other funding sources) to
obtain funds for the purchase.
Roys have received an inquiry (not a purchase
agreement) to sell the yard and inventory for
$550,000.00. This allocated $350,000.00 for
land and improvements and $200,000.00 for
inventory.
If the City were to purchase, the Roys would
be seeking a fair markete value price for the
land and building with the provision that it
retain possession for two years to reasonably
and economically liquidate its inventory. The
property would be purchased by the City in its
"as is. condition.
.
s~enario 0: The City and Roys enter into a relocation scheme
whereby the Roys recycling yard would be relocat"d
to an industrially zoned area in the city. onl'
version would be for the City to acquire land,
~uild a suitable L~c~~~ty l~ru~a~lu a ~G.C:;,
square foot warehouse/office building) and thun
the properties would be exchanged. A plan for
selling'off or moving inventory would have to
be worked out so that it could be done most cost-
effectively.
AUG-12-94 FRI 10:39 ROBT MILLER LAW OFFICE
.
.
.
P.04
Honorable Mayor and
Council Members
Al.lql.lst 12, 1994
Page 3
This scenario is probably the most complicated
of A through D.
g:euario El: A comb1nation of one or more of the above. That
is to say--that we would do Scenario A now with
an effort to do Scenario C or 0 five or ten year~
down the road as the land value of the existing
site for residential purposes could be max1mi?ed.
In summary it 1& our genuine hope that we can work with
the City in resolving issues.
We believe that Scenario A holds the best promise for
imm"diate success and would meet the reasonable expectatiolls
0/ !Ile neighborhood and the overall community of Elk River.
Very truly yours
Robert J. Miller
f(,.lM:crk