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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 172N0 171ST 170TH 169~ 168TH 16713't 166'1~1 164TH 163RD ti 162ND 161ST ~ 160TN 15g-n-i 158TH ~\ 157"R-I 156TH 155~1 RI& City of River 13065 Orono Parkway · P.O. Box 490 Elk River. MN 55330 ZONING MAP CASE: OA 96-03 LI CC MR 159TH LR MI, 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.