6.12. SR 09-16-1996ITEM 6.1~.
'~ity of
E
River
MEMORANDUM
TO:
FROM:
DATE:
Mayor and City Council n~
Kendra Lindahl, Zoning Assista
September 16, 1996
SUBJECT:
Request by the City of Elk River to
amend the City Code of Ordinances,
to allow used car sales in I-1, Public
Hearing Case No. OA 96-12
Request
At the direction of the City Council, staff reviewed a request to amend the
Zoning Ordinance to allow car sales in the light industrial (I-1) zone.
Attachments
· Zoning Map
· Land Use Map
Overview
This request is the result of staffs discussions with Mr. Reuben Penske. Mr.
Penske is currently leasing space in the recycling center building located at
the corner of Highway 10 and 165th Avenue NW. This area is zoned light
industrial (I-1). It was rezoned from highway commercial (C-3) to light
industrial (I-1) at the request of Mr. Hetland in 1995, in order to allow Mr.
Hetland the opportunity to operate a recycling center.
Mr. Penske is currently conducting an auto broker business and a marketing
operation out of this location, both businesses are permitted office uses in the
light industrial zoning district. Mr. Penske would like to operate a vehicle
repair shop, accessory to the auto brokering and vehicle sales. Vehicle repair
shops are a conditional use in the light industrial zone. Mr. Penske would
also like to operate a used car sales business at this location, however, used
car sales are not allowed in the light industrial (I-1) zoning district.
S:\PLANNING\KENDRA\OA96-12.DOC
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425
While this ordinance amendment request was triggered by Mr. Penske's
request for a specific property, it affects all property in the light industrial
zone and all vehicle sales lots. The ordinance amendment before you this
evening is a request to allow auto sales in the light industrial zone.
Analysis
The light industrial (I-1) zoning district is intended to serve as a transition
between more industrial uses and residential or business uses. Auto sales
are currently not allowed in the light industrial zone, but are a conditional
use in the highway commercial (C-3) zoning district.
Car sales are not typically considered an industrial use. Car sales are
customer oriented and are more appropriate in a highway commercial zoning
district. Industrial zones generally have more heavy truck traffic, noise and
odor than commercial zoning districts; and therefore, are not generally
conducive to high-quality, customer-oriented commercial uses.
Due to the limited supply of light industrial land within the city, it seems
inappropriate to allow industrial land to be developed for a commercial type
use. Elk River has a fair amount of commercial land available for
development, and it seems appropriate to locate new and/or used auto sales
in a commercial district. Although this ordinance amendment request was
triggered by Mr. Penske's request; it is important to remember that by
amending the ordinance, auto sales would be allowed in any light industrial
(I1) zoning district.
Most of the aspects of Mr. Penske's business plan would be allowed in the
light industrial (I1) zoning district. The office use portions of the business
are allowed in the light industrial zone, and the vehicle repair part of the
business is a conditional use in the light industrial district. However, the
outdoor display required for auto sales is not an allowable use in the light
industrial zone. Staff suggested to Mr. Penske that, as part of his conditional
use permit to do vehicle repairs in the light industrial zone, staff could
address a limited amount of vehicle sales in an area behind the building that
would not resemble a car lot. However, Mr. Penske has indicated that auto
sales are intended to be the main part of his business, and this compromise
does not satisfy his display needs.
Staff would be concerned that if car sales (open sales lot) are allowed in the
industrial zone, other similar uses may wish to be included in the industrial
district. Furthermore, the industrial zoned property along east Highway 10
would become possible locations for auto sales and other open sales lots
moving out from other communities.
S:\PLANNING\KENDRA\OA96-12.DOC
Comprehensive Plan
According to the 1995 Comprehensive Plan, the highway commercial district
is designed for retail and commercial businesses, and wholesale enterprises
that do not need an industrial setting and have considerable customer
contact. Auto sales clearly fall into this category.
The Comprehensive Plan also states that uses in the light industrial zone
should be compatible with each other and surrounding land uses. Other light
industrial uses are light manufacturing, research facilities, wholesale
businesses, warehousing, and offices. Recycling processing centers, mini-
storage, grain and feed elevators, auto repair shops, and other similar uses
are conditional uses in the light industrial zoning district. Auto sales and
open sales lots do not fit with these types of uses.
Planning Commission Recommendation
At their August 27, 1996 meeting, the Planning Commission recommended
denial of the ordinance amendment. There was much discussion about Mr.
Penske's situation, and although the Planning Commission supported this
particular business, they felt that the ordinance amendment was not
consistent with the Land Use Plan or the Comprehensive Plan.
Recommendation
Staff and the Planning Commission recommend denial of the ordinance
amendment request to allow auto sales as a permitted or conditional use in
the light industrial (I-1) zoning district.
S:\PLANNING\KENDRA\OA96-12.DOC
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City of
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13065 Orono Parkway · P.O. Box 490
Elk River. MN 55330
ZONING
MAP
CASE: OA 96-03
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MR
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LAND USE
~ o~ MAP
13065 Orono Parkway ' CASE:
Elk River, MN 55330
PENSKE
AUTO CONNECTION
Reuben Penske
P.O. BOX 541
Elk River, Mn. 55330
241-9496 / 867-6355
September 16, 1996
Below are some of the comments from three commissioners. I did send to
Mrs. Thonpson a copy of these quotations.
Judy Thompson-Chair-
"1 also, think along the lines of the other commisioners. I think that both
businesses, Recycling Stationand Penske Auto Connection, fit for the site
on Hwy 10 & 165th."
Robert Minton-
'Y~ I ~rn interested in finding a solution that would allow
~,~:~II~ of ~.h~se businesses to operate on Dick Hetland's site.
~ ,,¥o~id like to see a workable plan established. That site is functioning
!:~asically as a Highway Commercial and is laid out and suitable for
Auto Sales.
"The adjacent properties to the west along highway 10 are
currently zoned highway commercial and the Hetland
property was also zoned highway commercial one year ago.
A possible option with a new zoning format of combining
light industrial and highway commercial and tie into the
adjacent property that sits to the west."
Louise Kuester-
"At the recent planning commission meeting a citizen
suggested attaching up to 300 feet of frontage highway
commercial district zoning, allowing properties along the
highway to fully utilize there property and develop a
~:cessful business. I thought that this was an idea that
~,~ !c.~ be explored and so I suggested in the discussion that
: ,::ombination "front and back" zoning could work for this
i.'roperty and business association. I like the positive and
creative approach that you are taking."
James Tacheny-
"1 do think it is appropriate for you to establish your Auto
Sales business on the Hwy 10/165th site, as it was
designed for that use just a few years ago. It is important
that we find a solution, as I support these two business
enterprises in being successful. The Recycling Station is
a valuable resource in our community, so I am all for it's
success. So if your Auto Sales business would benefit
Mr. Hetland's enterprise, I am in favor of creating a
workable plan. We must find a way of doing a zoning
plan that maintains a compliance for both businesses.
~!::~pecially since this site is layed out to make full use of
i~ location on the highway for highway commercial
Sincerely,
Reuben Penske
Penske Auto Connection, Inc.