HomeMy WebLinkAboutPCAgenda_91Mar25i•
PLANNING COMMISSION AGENDA
March 25, 1991
7:30 p.m.
A. CALL TO ORDER:.
B. ROLL CALL: Barry Boche Da kin
Finnegan Nes~ingen y Gi sonuTalbo~-
C. APPROVAL OF MINUTES: February 25, 1991
D. CITY COUNCIL MINUTES: February 27, 1991
E. REPORTS, REQUESTS, RECOMMENDATIONS:
1. Report on proposed conditions to govern amusement
establishments including pool halls and game arcades in
Section 9-10.01 Sub (2)(p)(q) of the zoning code.
2. Amendment to comprehensive plan contract with planning
consultant, the Hoisington Group, Inc.
3. Discussion of the zoning code regulations governing
driveways and off street parking requirements in R-1
zones.
F. INFORMATION
1. New York Times Article 3/4/91, "Vermont Development Law
May Have Saved its Banks"
G. ADJOURN
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MINUTES
REGULAR PLANNING COMMISSION MEETING
FEBRUARY 25, 2991
7:30 p.m.
Meeting was called to order by Chairperson Boche.
PRESENT:
Barr, Boche, Daykin, Duncan, Finegan, Nestingen, Gibson Talbot
Cernia
APPROVAL OF MINUTES:
Commission requested an amendment to the January 28 minutes to
include the findings for revoking the conditional use permit
issued for a game arcade at 1544 W. Larpenteur.
REPORT ON THE POSSIBLE REMOVAL OF POOL HALLS AND GAME ARCADES AS
CONDITIONAL USES IN A B-2 ZONE 9-10.01 2)(p)(q)~
City Planner Hoyt reported on the possible exclusion of, or
further restrictions on game arcades and/or pool halls as
conditional uses in the City's B-2 zone.
Planner Hoyt explained that when considering whether or not to
remove billiard/pool hall and/or games arcades as conditional
uses from the zoning code, two questions need to be asked, 1)
"Is a pool hall and/or games arcade a desirable land use in the
City"?, and 2) "Is a pool hall and/or game arcade in a B-2 zone
compatible with other land uses in the City"?
Three site criteria were discussed. One, adequate parking in
front of the establishment with no rear exit to allow police to
better patrol; two, exits away from residential neighborhoods;
and three, highly visible entrances and exits for observation by
patrolling police.
Due to the close proximity of all businesses and residential
neighborhoods, the Commission agreed there was no appropriate
location for such an establishment in a B-2 zone in Falcon
Heights since the option of establishing minimum distance
requirements was not available to the City. Commissioner
Finegan moved and the Commission unanimously accepted to
recommend the removal of both uses from the zoning code, 9-
10.01(2)(p) - billiard/pool hall and 9-10.01(2)(q) - game
arcade.
Councilman Cernia will bring this to the City Council as a
Planning Commission recommendation. If the Council approves, a
hearing notice will be published and a public hearing will be
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held in March by the Planning Commission.
REPORT ON THE PROPOSED INCREASE IN PLANNING RELATED FEES
Planner Hoyt announced she has been re-evaluating all planning
fees and recommended increases. After a brief discussion on the
fee changes, the Commission unanimously recommended staff take
the recommendation to the City Council for a final decision.
REPORT ON ZONING CODE REQUIREMENTS FOR RETROACTIVE_SCREENING OF
EXISTING BUSINESSES
A complaint brought by Falcon Height resident, Mr. Warren
Peterson, against Hamline Hoyt Repair for having junk cars and
tires stored on his property at 1565 Hamline Avenue N. was
discussed. Planner Hoyt reported City Staff had talked to the
owner,. and he is making every effort to be in conformance with
city code. The Commission then reviewed proper methods of
screening of property as required in the code. They agreed that
frequently screening would not be appropriate and/or possible,
but cleaning up the business property would be appropriate.
Discussion about the revision of the retroactive screening
requirement in Section 9-14.01(5)(b)(d)(e) of the code followed.
Because retroactive screening was frequently impossible or
inappropriate, it was suggested that the City set minimum
• property upkeep standards for existing businesses. Chairman
Boche asked staff to begin to draft specific things that are
enforceable that might be substituted for those that are now
unenforceable.
REVISED POLICIES FOR COMPREHENSIVE PLAN REFLECTING COMMENTS AT
JANUARY 28, 1991 MEETING
Changes suggested in the Comprehensive Plan by Commission are:
In the section on the State Fairgrounds and University of
Minnesota
Objectives:
1. "To encourage the State Fairgrounds to remain in Falcon
Heights" be changed to read:
To encourage the State Fair as it currently operates, to
remain in Falcon Heights.
Policies:
A fourth POLICY be added:
4. Regulate non-State Fair development on the State Fair
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property.
In the section on Community Facilities and Services
Policies:
1. "Provide emergency service including police, fire and rescue
within a four minute response time to any place served by the
City" be changed to read: _
Provide emergency service including police, fire and rescue
comparable to surrounding communities.
In the section on Transportation
Objectives:
A seventh objective be added:
7: To maintain the transportation infrastructure of the City.
Planner Hoyt said the Comprehensive Plan should be ready for
final review and discussion at either the March or April
meeting. A public hearing will be held on the final draft. The
document will then be sent to the City Council for approval.
'• Meeting adjourned at 9:25.
Dee Swenson, Recor ing Secre ary
Susan Hoy , Ci y P anner
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MINUTES
REGULAR PLANNING COMMISSION MEETING
JANUARY 28, 1991
7 p.m.
Meeting was called to order 7:20 p.m. by Chairperson Boche
PRESENT:
Barry, Boche, Daykin, Finegan, Nestingen, Hoyt
Council Person Cernia
ABSENT:
Duncan, Gibson Talbot
APPROVAL OF MINUTES
Minutes of December 17, 1990 meeting were unanimously approved
as written.
COUNCIL MEETING MINUTES: January 9, 1991
Council approved the Planning Commission reappointment of Lee
Barry, three dear term expiring 12/31/93, and Ed Finegan, two
year term expiring 12/31/92.
ELECTION OF OFFICERS FOR 1991
Leonard Boche was unanimously re-elected chairperson for 1991
and Lee Barry unanimously elected vice chair.
TERMINATION REPORT OF CONDITIONAL USE PERMIT FOR J.J.'S POOL &
GAME ARCADE 1 44 arpen eur venue Wes un er Sec ion 9-15 04 5)
o e zoning coae
Planner Hoyt gave a brief background report on the security
problems associated with J.J.'s Pool & Game Arcade over the
recent months. She reported that City Administrator Wiessner and
she had met with the owners, Mr. Joe Sacco and Mr. Jim Sacco, to
review their failure to meet conditions 3, 6, 9, & 10 as
stipulated in the original conditional use permit and to offer
possible solutions to the problems (see attachment 1).
Staff proposed three possible solutions. First, hire two
uniformed security guards in addition to the two employees to be
on duty during business hours; second, to remove the video games
leaving only the pool tables; and third, to close the business
by 8 p.m. since most fights/assaults occurred after this time.
At the meeting with city staff, the business owners explained
complying with these suggestions would make it financially
unfeasible to remain in business. They said they know they are
not meeting the conditions of the permit and are unable to
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institute measures to do so. Therefore, city staff recommends
the termination of the conditional use permit.
Messrs. Joe and Jim Sacco, owners of J.J.'s Pool & Game Arcade,
appeared before the Commission. Mr. Joe Sacco explained that
hiring two uniformed security guards and closing earlier was
financially impossible for the business. He reported that 65
percent of their gross annual income came from the games so
removal of the games leaving only the pool tables was a
financial hardship. Mr. Sacco said despite efforts to control
the patrons, violent incidents arose because assault crimes are
on the increase in the area due to gangs. When employees tried
to monitor the back door for exit use only, the patrons came
through adjacent businesses. The owners said they were unable
to institute measures to meet the conditions of the conditional
use permit.
Chairperson Boche thanked Messrs. Joe and Jim Sacco for coming
to the meeting and for their cooperation in reviewing the
permit.
Lee Barry moved to adopt the staff recommendation to the City
Council to terminate the conditional use permit for J.J.'s Pool
& Game Arcade at 1544 W. Larpenteur Avenue with the
understanding that the termination of the conditional use permit
would mean no game establishment could open at Northome without
a new conditional use permit. It passed unanimously.
The recommendation to revoke the conditional use permit was
based on the following findings:
o that conditions 3, 6, 9, and 10 of the conditional use
permit as amended on August 9, 1989, relating to the
security of the business and parking lot, the use of the
rear exit, and the disruption of community standards of
peace and quiet are not being met as evidenced in police
reports on 1544 W. Larpenteur Avenue;
o that the business owners concurred that the conditions
are not being met;
o that the business owners stated that they could not
implement measures to meet the conditions;
o and that the procedures for a revocation of a
conditional use permit as identified in section 9-
15.04(5) of the City Code have been duly followed.
REPORT ON PROPOSED METHOD OF TERMINATING CONDITIONAL USE PERMITS
S P T F H CO T ONAL PERMIT PROCESS
Planner Hoyt reported that she contacted City Attorney Tom Gedde
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requesting a mechanism to discontinue .a conditional use permit
granted for a use once the use is discontinued at the location.
He said that according to state statute and Falcon Heights City
Code, the conditional use permit goes with the property not the_
specific business use regardless of when the business closes.
However, if the conditional use permit is granted because of a
concern about the activities associated with the use rather than
site development features, the City may include a condition
terminating the conditional use upon business closure or
transfer of ownership.
DISCUSSION OF PROPOSED CONCEPT PLAN AND POLICIES TO BE INCLUDED
IN THE COMPREHENSIVE PLAN WITH PLANNING CONSULTANT AND THE
P BL
(See attachment 2, public attendance list.)
Fred Hoisington, Planning Consultant, briefly reviewed the
proposed comprehensive land use plan. He highlighted some
changes resulting since the community forum in November, 1990.
These changes included:
1) shift to limited business from multi-family residential
along the southside of Larpenteur, west of Snelling;
2) the removal of a collector street along Arlington
• through the state fairgrounds (due to conversations with
the University planner);
3) the removal of the neighborhood retail designation along
Lindig Street at Larpenteur Avenue.
City Planner, Susan Hoyt, identified significant policy changes.
These included:
1) Neighborhoods, Policy #6
Maintain the single-family character of the
existing residential neighborhoods and discourage
redevelopment that may be considered a change in
use unless irreversible blight can be demonstrated.
The additional phrase is to accommodate serious
blight adjacent to central commercial district
2) Commercial, Policy #9, the addition of the statement:
Require that any redevelopment project that may
logically extend beyond the area already zoned for
commercial use have a straight boundary that
generally correlates with a public street line or
the rear lot lines of residences and take all of
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the property to the project boundary. Further,
where such extension of a project takes place,
extraordinary setbacks and landscaping be required
to mitigate neighborhood impacts.
This was included to protect the surrounding residential
neighborhoods in the event that a redevelopment proposal
for the SE corner is proposed beyond the existing
commercial zone.
3) Economic Development, Policy #5
In the event that a portion of the State
Fairgrounds property becomes available or an
LRT station is located in the proximity of the
Snelling and Larpenteur intersection, allow
the entire area, but not a portion, of
Hollywood Court to be redeveloped with mixed
uses as part of the Snelling and Larpenteur
retail core.
This was done to address redevelopment if a substantial
change occurs in the surrounding land use.
4) Economic Development, Policy #1
Restrict developments throughout the City to
three stories or 35 feet in height.
This was retained to keep the overall low-rise profile
of the City and, if necessary, to use as a negotiating
tool for the southeast corner of Snelling and
Larpenteur.
Mr. Warren Peterson, 1373 Hoyt, questioned draft commercial
policy #6 relating to required buffering, screening, and
landscaping. He questioned how the determination of
"feasibility" is made regarding the buffering and screening
required between ex~ist~in~ commercial uses and residential areas.
Planner Hoyt explain~e tFiis was done on a case by case basis.
Chairman Boche replied more buffering requirements were placed
on new than on existing uses because existing land uses may need
to be termed a nuisance to require change. Councilman Cernia
stated that, even then, a nuisance that ideally requires
screening may be impossible due to space between the two
conflicting land uses. How to decide what is fair and on an
equitable basis must go through due process. Chairman Boche
explained the difference between the planning process and an
ordinance is that an ordinance is enforceable through the
courts.
Mr. Mark Ascerno, 1871 Tatum, made three suggestions for
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changes. The first was the intent of draft neighborhood policy
#4. He asked that it be more positively addressed by changing
it to read, an rou homes in residential districts should be
spaced not less an 1 2 mi e e ween omes. Secon Mr
Ascerno a so as ed~r clari~ica~ion o e phrase, "to
accommodate a 1990's lifestyle" He felt the term was
unnecessarily vague. Third, Mr. Ascerno asked that draft
Environment policy #8 include landscaping in existing
development as well as new development and redevelopment be
reviewed for landscaping for solar maximization. He also felt
that #10, "promote a curbside recycling program and encourage
on-site management of yard wastes" should include a statement
regarding encouraging recycling of yard wastes that do not lend
themselves to on-site recycling. Chairman Boche told Mr.
Ascerno that his comments would be taken under consideration.
Mrs. Elizabeth Close asked about burying overhead wires.
Planner Hoyt responded that Public Utilities draft policy #3
reads, "Require the burying of overhead utility lines in all
areas wherever and whenever feasible."
Chairman Boche thanked all attending the public hearing for
their interest and input in the comprehensive plan.
Further discussion followed on the draft of the proposed polices
for the comprehensive plan. Mr. Hoisington stated it would take
• about six weeks to prepare the entire draft document.
REQUEST FOR INFORMATION ON THE POSSIBLE EXCLUSION OF (OR FURTHER
Under Chairman Boche's initiation, the Planning Commission
requested the staff to report on the possible exclusion of or
further restrictions on game arcades and/or fool halls as
conditional uses in the City's B-2 zone. This request was made
due to a series of problems with these uses.
Chairman Boche adjourned the meeting at 9 p.m.
Susan Hoy Ci y P anner
Dee Swenson, Recor ing Secre ary
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MINUTES
REGULAR CITY COUNCIL MEETING
FEBRUARY 27, 1991
• Baldwin convened the meeting. at 7:00 P.M.
ALL MEMBERS PRESENT
Baldwin, Ciernia, Gehrz, Jacobs and Wallin. Also present were
Maurer, Gedde, Wiessner and Chenoweth.
MINUTES OF 2/13/91 APPROVED
The Minutes of February 13, 1991 were approved by unanimous
consent.
ADDENDUM TO AGENDA
Item F-12, Removal of Billiard/Pool Halls and Game Arcades as
Conditional Uses, was added to the Policy Agenda.
CONSENT AGENDA ITEMS APPROVED
The following Consent Agenda Items were approved by unanimous
consent:
l.Disbursements:
a. General Disbursements through 2/27/91, $92,856.50
b. Payroll, 2/1/91 - 2/15/91, $12,105.32
. 2. Resolution R-91-10 Proclaiming March 14, 1991 as Adult
High School Day
3. Licenses: Knutson Services, Inc. #0748, Falcon Heights
Pharmacy #0749, Top Performance for Hair #0750, American
Burner Service #0751, and Air Conditioning Assoc. #0752
PRESENTATION BY REPRESENTATIVE OF MINNESOTA POLLUTION CONTROL
AGENCY
Gary Eckhardt, a representative of MPCA,presented an update on
air control monitoring both at the City Hall site and at the
Larpenteur and Snelling intersection. He indicated that both
sites are presently in the acceptable range. In an attempt to
reduce air pollution problems a vehicle inspection and
maintenance program will begin in July of this year.
OUTDOOR RECREATION GRANT AGREEMENT WITH DEPT. OF TRADE AND
ECONOMIC DEVELOPMENT APPROVED (FOR IDAHO/SNELLING PARR)
Carol Kriegler explained that the grant agreement for $69,500
has been received and reviewed plans for use of the funds for
upgrading the park at Idaho and Snelling. Following a brief
discussion, Gehrz moved approval of the Outdoor Recreation Grant
Agreement for use at the Idaho/Snelling Park. Motion carried
unanimously.
• CITY TO REQUEST PROPOSALS FOR ARCHITECTURAL SERVICES FOR
IDAHO/SNELLING PARR SHELTER
Kriegler suggested that the City request proposals for
MINUTES
FEBRUARY 27, 1991
PAGE 2
architectural services as a means of exploring that particular
option. Other options to be considered are purchase of a
"pre-fab" structure or contracting with a "design builder".
Jacobs moved that staff be authorized to request proposals for
architectural services for the Idaho Snelling shelter. Motion
carried unanimously. Kriegler stressed that this would not
obligate the City to contract with one of the responding firms.
APPROVAL OF CONTRACT WITH BARYON-ASHMAN FOR IDAHO/SNELLING PARK
PLANNING SERVICES
Council considered a staff recommendation that the City contract
with Barton-Ashman Associates for the Idaho/Snelling Park
planning after which Jacobs moved approval. Motion carried
unanimously.
APPROVAL OF $10,108.80 PAYMENT TO JEFFERSON CONSTRUCTION FOR
COMMUNITY PARK PROJECT
Kriegler explained that Jefferson has been requesting final
payment for some time, however since there is still some
incomplete work, the City Attorney was asked to review the
contract to determine whether or not the City was required to
make final payment. Gedde was of the opinion that the City was
not obligated to make final payment but could withhold funds to
complete the project. Staff's recommendation that $7,500 be
. retained to cover the cost of the unsatisfactory grading and
landscaping was discussed. Concern was expressed that if the
contractor did not complete the work it would be difficult for
the City to contract for completion in time for early spring
seeding. Kriegler was of the opinion that $7,500 would be
adequate to cover costs should it be necessary for the City to
complete the work and that the project could be done in time.
She felt that with the sum being withheld Jefferson Construction
would probably choose to complete the project in a timely
manner. Ciernia moved that a payment of $10,108.80 be made to
Jefferson Construction and that $7,500 be withheld until final
landscaping is properly completed. Motion carried unanimously.
AMENDMENTS TO ASSESSMENT POLICY APPROVED
Council discussed at length the possibility of reducing the
amount assessed to property owners for local improvements, and
the impact on City taxes should the amount be reduced. Wiessner
reviewed a handout estimating costs to the City based on the
present policy to assess 2/3 of the project with the City
funding 1/3 and the impact on City taxes should the assessed
amount be reduced. Also discussed was the fact that assessment
of tax exempt properties should be clarified in the assessment
policy. Ciernia moved, seconded by Wallin, adoption of
Ordinance 0-91-3 making the following changes in the assessment
policy: 1) Change the 2/3 assessment and 1/3 City participation
for street and storm sewer improvements to 50/50, and 2)
MINUTES
FEBRUARY 27, 1991
PAGE 3
clarification that tax exempt property is taxed 100$ of the
residential equivalency rate. Motion carried unanimously.
ORDINANCE 0-91-3
AN ORDINANCE AMENDING SECTION (need Tom Gedde's title)
PROPOSED RESOLUTION ESTABLISHING ASSESSMENT FOR 1991 STREET
IMPROVEMENT PROJECT
Ciernia moved adoption of Resolution R-91-12 with the
stipulation that the amount of assessment is to be based on the
policy as just set by Ordinance 0-91-3. Motion carried
unanimously.
RESOLUTION R-91-12
A RESOLUTION DECLARING COST TO BE ASSESSED AND
ORDERING PREPARATION OF PROPOSED ASSESSMENT
PROPOSED RESOLUTION ON SCHEDULING HEARING FOR 1991 STREET
IMPROVEMENTS
Ciernia moved adoption of Resolution R-91-13 scheduling the
public hearing on the proposed assessment for March 27, 1991
• which carried unanimously.
RESOLUTION R-91-13
A RESOLUTION FOR HEARING ON PROPOSED ASSESSMENT FOR
1991 STREET IMPROVEMENTS
DISCUSSION - PETITION FROM HOLLYWOOD COURT RESIDENTS REGARDING
CLOSING OF HOYT AND UNDERWOOD STREETS ON THE FAIRGROIINDS
Baldwin commented on the petition from Hollywood Court residents
requesting 'the Council assist in re-opening the roads and
requesting MNDOT to re-set the semaphores at Snelling and Hoyt.
Wiessner explained she had discussed the street closings with
Mike Heffron of the State Fairgrounds and he had indicated they
did not intend to rescind their decision. Baldwin and Wiessner
will arrange a meeting with Mike Heffron to further discuss the
matter and Council will also relay the residents' requests to
our State Legislators at a meeting scheduled for March 2, 1991.
CITY TO DISCONTINUE ANNUAL SPRING CLEAN UP
Wiessner explained that the annual spring clean up has become
excessively expensive and last year only 120 vehicles made use
of the service. Based on the cost, low participation, the
• City's need to reduce expenditures, and the fact that there are
private haulers capable of picking up the items, Council
unanimously agreed that the clean-up should be discontinued.
MINUTES
FEBRUARY 27, 1991
PAGE 4
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1991 BUDGET ADJUSTMENT
Wiessner explained that the State Legislature has taken action
to reduce the July Local Government Aid payments to cities which
results in a $16,609 decrease to Falcon Heights with an
additional reduction in the December payment. She then
presented possible options for City Budget reductions to
compensate for the loss and recommended Option 4. During the
discussion Gehrz expressed concern over the proposal to
eliminate the animal control service and felt it would be more
appropriate to delete the $500.00 from some other area. Staff
was directed to discuss the matter with the impounding clinic
and Roseville Police to determine if the cost of animal control
could be reduced. If not, the matter will be brought back to
Council for discussion. Wallin moved adoption of Option 4 with
deletion of the animal control item for a total budget
adjustment of $16,140. Motion carried unanimously.
RESCUE SERVICES RATE CHANGES DISCUSSED
Wiessner presented proposed increased charges for rescue
services which would make the service completely
self-supporting. Concerns were expressed regarding including
building costs in the charges for Falcon Heights residents and
business people as they are already paying taxes to cover those
costs. Council also felt that including back-up ambulance costs
in the charges would not be appropriate. Staff was directed to
recompute the rescue charges with the deletion of these items
for discussion at the next meeting.
GENERIC CONDITIONS TO BE DRAFTED FOR POOL HALL AND GAME ROOM
CONDITIONAL IISE PERMITS
Planner Susan Hoyt presented the Planning Commission's
recommendation that Council consider removing billard/pool halls
and game arcades as conditional uses in a B-2 zone. .She
explained the difficulty in allowing these establishment in the
City without disrupting the community standards of peace and
quiet since all business areas closely abut residential areas.
Council indicated they did not feel these uses should be deleted
from the code and asked that Hoyt prepare generic conditions
specifically for these types of businesses. These conditions
will be discussed at a future meeting.
INFORMATIONAL ITEMS NOTED
Council noted the Revised Policies for the Comprehensive Land
Use Plan reflecting comments made at the January 28, 1991
Planning Commission Meeting.
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FEBRUARY 27, 1991
PAGE 5
ADJOURNMENT
The meeting was adjourned at 10:00 P.M.
Tom Baldwin, Mayor
ATTEST;
Shirley Chenoweth, City Clerk
Meeting Date 3 25 91
Agenda Item E-1
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CITY OF FALCON HEIGHTS
PLANNING COMMISSION
LJ
ITEM DESCRIPTION: Report on the proposed conditions.to govern
amusemen es a ishments including pool halls and game arcades
in Section 9-10.01 Sub (2)(p)(q) of the zoning code.
SUBMITTED BY: Tim Malloy, Consulting Planner
REVIEWED BY: Susan Hoyt, Interim City Administrator
EXPLANATION/DESCRIPTION:
At the February 25, 1991 City Council meeting, Council members
directed staff to prepare conditions to include in Section 9-
10.01 (2)(p)(q) of the zoning code to govern the operation of
pool and game arcades rather than eliminate these conditional
uses from the code as the Planning Commission recommended.
Therefore, the attached conditions are recommended. Additional
conditions may be added as part of the specific conditional use
permit when it is reviewed.
ATTACHMENT 2 Conditional1UseaforyJ.J~'lsuPoolg&PGameeArcade
ACTION REQUESTED:
1. Review and discuss
2. Adopt
3. Schedule public hearing
E-1
At:t:~chment 1
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COUSULTING PLANNERS
LA^JDSCAPE ARCHITECTS
3(lU E[RST~ AVENUE NORTH
SUITE ~I(1
MIPvNEAF'OllS, MN 5~-i01
67~ 3,39~:i:31)(1
MEMORANDUM
DATE: 20 March 1991
TO: Honorable Chair and Members of the Falcon Heights Planning
Commission
FROM: Tim Malloy, Consulting Planner
RE: Draft of possible conditions for Amusement Establishments
We have been asked to establish a set of generic conditions to address the problems
• typically associated with amusement establishments and games rooms in commercial
cen±ers adjacent to residential areas. The intent is to amend Section 9-10.01 subd. 2
(p) and (q) to include those conditions that, in the interest of protecting the health,
safety and welfare of the general public, can be applied to any amusement facility.
Many of the conditions outlined in this memo are modifications of similar conditions.
that were included in the Conditional Use Permit for J.J.'s Pool and Game Arcade.
Important changes have been made to those conditions to increase their compliance with
some of the basic legal principals governing land use regulations and to make them
more generic so they can be applied to any amusement establishment.
We have also tried to eliminate redundant conditions that are covered elsewhere in the
ordinance. For example, there is a fairly lengthy list of conditions, which apply to all
Conditional Use Permits, found in Section 9-15.04 Subd. 3(a) 1-13. These address such
issues as screening, signage, adequate off-street parking, lighting trespass, architectural
compatibility and others. We have made it clear that the specific conditions outlined
for amusement establishments are additive, by including the condition that all other
applicable provisions of the Falcon Heights City Ordinance must also be adhered to (see
condition G in this memo).
There are several things to consider when establishing zoning standards or conditions.
The first is whether the regulation is within the scope of the police power, the
authority for which is handed down from the State via the statutes. The principal
concern with amusement establishments is generally the disruption of the peace and
quiet of surrounding residential areas. This is particularly true in Falcon Heights where
all of the areas zoned for Retail Business are located directly adjacent to residential
• areas. It is entirely within the authority of zoning regulations to control the
development and use of commercially zoned property to insure the reasonable peace and
quiet of surrounding residentially zoned areas. Therefore, we have made this the topic
of the first item in the list of proposed conditions.
• Draft Conditions for Amusement Establishments Falcon Heights Page 2
Another test of a regulation's appropriateness is whether it represents a reasonable
means to a legal end. Regulations must be reasonably related to the problem that they
are intended to control. If the regulation is harsh or unreasonable it may violate the
principal of due process, which states that no person may be deprived of life, liberty,
or property under circumstances that are unreasonable, arbitrary, or capricious.
The third issue to be aware of when considering new regulations involves the equal
protection clause of the fourteenth amendment of the Constitution. To meet this
requirement the regulation must be nondiscriminatory and there must be some rational
basis for subjecting a particular group to it.
The first condition in the CUP for J.J.'s Pool and Game Arcade deals with hours of
operation and has been included in the proposed conditions virtually unchanged.
Restricting the hours of operation to midnight is consistent with the City's curfew for
minors between the ages of 16 and 17. In addition, this restriction reduces the
possibility for disruption in the adjacent residential areas during those hours when a
majority of residents are sleeping.
Condition number two of the J.J.'s permit has been eliminated due to its site specific
nature. More specific conditions regarding parking can be incorporated at the time an
actual application is considered.
• The third condition from the J.J.'s permit prohibits entering the establishment from the
rear of the building. Since the retail buildings in the City of Falcon Heights are
generally located with the rear of the building facing an adjacent residential area,
restricting entry from the rear of the building could help reduce the potential of
loitering and other undesired activity in this area. For this reason this condition has
been retained in the list of proposed conditions. One word of caution, there may be
some structures where a side entry is adjacent to a residential property and in that
case the wording for the condition may need to be revised to address this situation at
the time. the permit is issued.
The third condition in our current list, labelled C, requires an approved security plan
for amusement establishments. The intent here is to establish a comprehensive method
for dealing with the issues that are generally the most problematic for this type of use.
In addition, requiring the plan to be approved by the local law enforcement officials
insures that these officials are aware of the establishment and that they have had input
regarding its design and operation with a mind toward making the job of policing it as
easy as possible. The key word in this condition is "implementation", we want to make
sure the security plan is followed and not just prepared and ignored. Basically, this
condition covers the issues addressed in items 4, 5, 6, 8, and 9 of the previous permit
for J.J.'s.
We believe Condition number 7 in the permit for J.J.'s is discriminatory and therefore,
violates the principal of equal protection. There is no basis for assuming that allowing
a person, previously convicted of a felony, to work at the establishment will result in it
being any more or less compatible with the surrounding residential area.
• Item 10 of the J.J.'s permit has been revised to eliminate the language about the
maintenance of health, safety, and welfare. This language is awkward. In the broadest
• Draft Conditions for Amusement Establishments Falcon Heights Page 3
interpretation, it implies that the adults supervising this establishment responsible for the
health, safety and welfare of the entire community. At the very least it should
identify whose health, safety and welfare is being maintained. In addition maintenance
of the health, safety and welfare of the public is the stated purpose of the City's
ordinances and does not need to be restated here.
The second part of this statement, which requires the protection of "existing community
standards of peace and quiet", has been addressed in condition A. As a result, the
language in item E of the proposed conditions, eliminates references to health, safety
and welfare and peace and quiet. Instead, the condition requires adequate adult
supervision including a minimum of two employees. This is to insure that there is one
person to tend the cash register and at least one person available at all times to
monitor activity inside the establishment and in the adjacent parking areas.
Item F of the proposed conditions requires licensing of amusement establishments. The
primary intent here is to levy a fee to help offset the additional costs involved in
monitoring and controlling such uses.
We discussed the reasoning behind item G earlier in this memo. Item H is designed to
inform the applicant that the Council has the right to apply additional conditions and to
make it clear that violation can result in revocation of the permit.
The following is the proposed language for Section 9-10.01 subd. 5(p)(q):
Amusement Establishments subject to the following conditions:
A. T}ie operation of such establishments shall not negatively impact the
reasonable peace and quiet of surrounding residential areas.
B. Hours of operation shall be limited to 10:00 AM - 12:00 Midnight. All
existing curfews will be enforced on the premises.
C. Implementation of a security plan, which must be approved by the local law
enforcement official, will be required. The security plan shall include
provisions for the following; adequate security lighting, controlling loitering
and any disorderly behavior within the building, in the parking lot or
anywhere else on the premises, prohibiting the sale use or possession of
alcohol or any other controlled substance without a prescription.
D. Rear door will serve as an emergency exit only.
E. Adequate adult supervision will be required including a minimum of two
employees on the premises during all hours of operation and until 1/2 hour
after closing. Additional supervisory and/or security personnel may be
required at the City Council's discretion.
F. No person shall establish maintain or operate an amusement facility as
• defined in this ordinance without a license issued by the City.
• Draft Conditions for Amusement Establishments Falcon Heights Page 4
G. Compliance with all other applicable provisions of the Falcon Heights City
Ordinances shall be required.
H. Other conditions, as deemed appropriate by the City Council, may be applied
in response to site specific conditions at the time the conditional use permit is
issued. Violation of any of the above stated conditions or any other
conditions included as part of the approved conditional use permit shall be
deemed ample grounds for revocation of the permit.
We also suggest the following definitions for "Amusement Establishments" and
"Amusement Devices":
Amusement Establishment: Any building, area, or place providing entertainment
derived from the operation of amusement devices.
Amusement Devices: Any electrical or mechanical game of skill or chance
requiring the payment of money to play or operate.
We would recommend that the City's legal counsel review these conditions and
definitions, or any modifications made to them by the Planning Commission or Council,
before they are officially adopted.
•
•
;;. ~ CONDITIONS FOR J.J.'S POOL ~ ARCADE
`~ CZ~ f OF F~LCO~ H~I~ ~-1 --
• COUNCIL RESOLUTIOg Attachment 2
C
Date August 9, 1939
A RESOLt'TIOty ~+_~YDI?~G R SOLUiZON R-8°-5 G3.~1vTi;G A
USz PE:Z"iIT FOR OFD.?=ION OF A G~'•'=. ~~C~T3E AT I5~!~ W-EST
L?R.PEtiTEuR (YORir.02•'_= S'c.OPPI~iG Ci~TER) _ -
~+rFR~=S, t'~e City of Falcon fieigbts r=_ce_ved an ap~Iication
Gated Dece~er 21, 19So for tae issuance of a conditic*n~1 Lse pe*_-a,~ t
t0 eStc^lisa a g~Iu2 2rCad2 lit NorthoWe Sr.Cppin? Center, 1544 ~;est
Larpentesr; and
~'+ :=~=~~, taz C1 Cy COL`^C11' d?d C2r2L'11!~i COIi52Q2r tae request a5 L:el?
ZS t_ie T'2C01~ei1GJcL10nS made b~ file Cl_y'S P.aP*:ing Coi~Z'_s51O71 aiL~?"
hclcing tae required Fublic fieariaQ; •
• NOw, T'~=~EOZE, BE IT R?SOLV~ by t7e City Council of tae City
of Falcon Eeigats twat a cond=~ienal use pe:^,..it for tae es~ablisament
of a game arcade at 1544 nest La_penteur;~venue be g=anted subject
to tae following conditions:
(1) I~LY~~um hours of operation cili be 1Q:Q0 A.?i. to 12:00 I~.idnigh•t
,: -~ tarau h Thursd ._ . -- - - ay
a~^ c~~""a'y. ~-~.1 esisti.~o applicable curfe~:s ~.-i_LI be enforced
on the premises. •
___. (Z) Restriction on use of back parking lot after 9:00 P.Y_ s.-ill be
- - adequately posted by property o~.~er:
(a) Game Room parking will be restricted to. front and side -
• parking lots after 9.00 Y.M. Property o~.~er vi1l install
appropriate sigaage... -_ __
(b) Al T Arona e_~its frot- parking lot shalt be postes3 "left turn
Daly after 9:00 P.M_".
_-(3)' .,The back door ~~.ll be an esit only, conforming to Fire Cade.
. .Y.----......._~..._.--~--- - ~- __.-.... _. _ - - _. - ---- - •-~ ---
Moved by Wallin _ Aaprove3 b : ~dLv1 -
L~avor
Angust 9, 1989 .
Y=~S Nays
Bat nii?~ ~ ~.
•L.~!L~ /
CI.1.'TI~i 5 in Favor Atteste3 b} ~ ~ --
C:If~`TO~.'ETH City Cleik
WhLLiN C Against
• BU5ii 'ugust 9, 1989
Date
Adapted by Counc;i Au~~st 9, I°8?
~•
' k No le~~ than present level cf illuniaation in the rear parking
r ( )
lot till be provided. ~
•
~.
or ccntrolled ( ~
(~) 2vo alcoholic beverages (including 3.2 be°'r or ~-f.ne)
subsea:ices without a prescription wall be sold, possessed,
or consumed on the premises of the gz/e roes, the coy-=••on areas
~:ithin the building, or the parking areas. i
(6) •~'he property ovner.~.rill post on the exterior of the premises
"No loitering" and trill prevent any•~loit~ring in comron areas
t:ithin the building or_ in the par'~cing areas and sidewalks
adjacent to •the •building.^ _ -
(j) ~:,y person. who has been convicted of a felony~• controlled suhstanc= •
abuse, cr g:~bling Ian: violation within t=12 past five years is
h gee rocm.
prohibited from ~:or?{i ilo cs 2n 2tt2~da=1t S~ tie
(8) 'The iaterfor of the gz.:e coon ~:i!l be f_2° of obstructions
to visual supervision by 'attend~zts and till be adequately
ligted. •
(9) Game room management trill take all zeasonable action to expel
intoxicated persons and trill allow no disorderly conduct on
the premises, parking areas and adjace~c sidewaLks.•
rovided until one-half hour
(10) Adequate adult supervision trill be p
after closing to ensure that the health, safety and t-elfare
and existing community standards of peace and quiet are maintained.
At Councils discretion, additional supervisory and/or
security personnel may be requir=_d.
(lI) First review period of this conditional use trill be a~thin three
months after opening with annual revieti-s to fol].ot~ on
anai4ersary date of opening. Review t'~1 also be required upon
a change is proprietorship or focus of the business. The
purpose of reviews will be for addition of conditions to
address any concerns created by the b.1,5tness.
(I2) All advertising, signage or promotion of the business iri3.1
focus an attracting family oriented business.
(13) At least fifty (50) percent of the interior space trill be
designated as a "ZIo Smoking" area.
e
Meeting Date 3 25 91
Agenda Item E-2
CITY OF FALCON HEIGHTS
PLANNING COMMISSION
ITEM DESCRIPTION: Amendment to the comprehensive plan contract
wi a oisington Group
SUBMITTED BY: Fred Hoisington
REVIEWED BY: Susan Hoyt, Interim City Administrator
EXPLANATION/DESCRIPTION:
Due to the shift in the City Planner's employment status to
Interim City Administrator after the departure of Jan Wiessner,
it is desirable to contract more service from the Hoisington
Group to complete the Comprehensive Plan in a timely fashion.
The proposed additional service includes uniting a portion of
the text and the implementation plan. All remaining meetings
were covered in the current contract. Additional services will
be billed at an hourly rate. The estimated cost is $2,700 -
$4,200. The original contract amount is $16,300. The
additional dollars will come from the consultant budget and/or
the Planner's salary.
• ATTACHMENT 1: - Proposal for additional sere'
Hoisington Group, Inc. Ices for
ACTION REQUESTED:
1. Recommend to Council
.~.-._
•
~~c ~
I-~oisin~ton ~ro~~ inc.
LAND USE CONSULTANTS
E-2
Attachment 1
March 15, 1991
Ms. Susan Hoyt, City Administrator
City of Falcon Heights
2077 West Larpenteur Avenue
Falcon Heights, MN 55113-5594
Re: Atrendment ~tu ~Coxiipte;~;,nsiv~ Piail>~ii~g Cenira;,t
Dear Sue:
Based on our telephone discussion on Monday, March 11, 1991, I have
reviewed the work program to identify what we were expecting from you
in. the way of assistance in completing the Comprehensive Plan documen*.
The following is a list of the elements we had anticipated you would be
responsible for writing/completing to keep costs as low as possible:
• 1. Regional Setting
2. Unique Attributes
3. Historical Resources
4. Housing (characteristics, supply/demand)
5. Community Facilities and Public Services (excluding parks)
6. Implementation Plan including all meetings and narrative for the
Capital Improvements Program, housing implementation, zoning and
subdivision recommendations to bring them into compliance with the
Comprehensive Plan.
In order to bring ourselves up to speed with respect to your parts of the
Comprehensive Plan and then complete it satisfactorily, it could entail an
additional fee of between $2,700 and $4,200. This includes writing time
but no additional meetings. This is in addition to the $2,900 that remains
on the present contract. We will bill the City on an hourly plus expenses
basis per our current hourly rates.
Senior Professional
Professional
Secretarial
$90/hr
$43-75/hr
$32/hr
• If you have questions or concerns, please give me a call at your earliest
convenience. If that amount seems reasonable, you can simply send us a
7300 Metro Blvd. • Site 525 • Minneapolis, MN 55435 • (612) 835-9960
• letter authorizin us to roce
g p ed with the additional services with all other
provisions of the original contract to remain in effect.
Sincerely,
Fre L. I~ioisington, AICP
Planning Consultant
FLHrglh
•
•
Contract Amendment Letter Page 2
Meeting Date 3/25/91
Agenda Item E-3
•
CITY OF FALCON HEIGHTS
PLANNING COMMISSION
C7
ITEM DESCRIPTION: Discussion of off-street parking and driveway
requiremen s in an R-1 zone
SUBMITTED BY:
REVIEWED BY:
Susan Hoyt, Interim City Administrator
Susan Hoyt, Interim City Administrator
Terry Mauer, City Engineer
EXPLANATION/DESCRIPTION:
The zoning code is vague regarding allowable off-street parking
in an R-1 zone (see attachment 1, Section 9-4.01 Subdivision (5)
(e). Due to the number of fairly narrow lots and single
garages, along with the frequency of three or four cars per
household for grown children, there is a lot of interest in
creating more off-street harking spaces. these spaces are often
requested to avoid "juggling" cars in a driveway. Historically,
parking along the driveway is included as a portion of the
parking space allocation. However, this needs to be clarified.
The City needs to clarify the code by defining off-street
parking, determining what open space requirements are desirable,
and designing ways to meet these needs. The driveway
requirements also require more specification. This will require
time from the planning consultant to specify off-street parking
standards. The City engineer provided driveway standards for
incorporation in to the code.
ATTACHMENT 1 - 9-4.01 Sub ( )(d)(e)
ATTACHMENT 2 - 9-2.05(2)(a)
ATTACHMENT 3 - Driveway Memo from Terry Mauer, 11/28/90
ACTION REQUESTED:
1. Recommend revisions to the code regarding driveways and off-
street parking in an R-1 zone.
•
E-3
Attachment 1
PLANNING AND DEVELOPMENT 9-4.01
,• b. Permits prior to effective date -structures or uses for which a
building permit has beef issued prior to the effective date of this
Code, but for-which work has not been completed shall be exempt from
the hereinafter stated parking requirements if the structure is
completed within six (6) months after the effective date of this
Code.
e. Surfacing and drainage. Off-street parking areas shall be
improved with a durable and dustless paved surface. Such areas
shall be so graded and drained as to dispose of all surface water
accumulation within the parking area.
d. Parking shall be permitted on hard surfaced areas designed for
that purpose and for providing access to garage, carport or open
parking area and provided that no driveway or off-street open
parking area shall be located closer than five (5) feet from the
p~pperty line on that side. The Pive (5) feet of property known as
the side yard shall be landscaped as .shall the' remainder of the
front yard applying to the residential portion of the house and
continuing to the far lot line removed from the access and/or r
parking driveway. Parking shall not be permitted in front or side
landscaped yards, boulevards, grass portion of street rights of-way
or other such areas. And provided further that from November 15 to
April 1, the unsurfaced portion of the front yard of any property in
a residential district may be used for parking one passenger vehicle
• registered in the name of a resident, if there is a single driveway,
and the vehicle is parked parallel to the driveway and on one
uniform side of the driveway, and the width of the parking area does
not exceed eight feet. For purposes of this Code a "passenge r
vehicle" shall mean a two or four-door sedan or van used primarily
for transporting passengers, and shall not include pickups, trucks,
campers, recreational vehicles or buses.
e. Number of off-street parking spaces. At least two (2) and not
more than four (4) parking spaces permitted for-each dwelling unit.
~~ At least one of the parking spades must be enclosed. No pe meson in
any. district shall convert a garage or carport tb another use
unless other acceptable provisions are made to provide the required
parking space. (~„ rod.
f. Truck parking in residential areas. No motor vehicle over one
(1) ton capacity bearing a commercial license and~no commercially
licensed trailer shall be parked or stored in a residential district
except when loading, unloading, or rendering service. No campers,
boats, trailers, or snowmobiles shall be parked or stored in any
front yard or in side yards of a corner lot.
L~
AAEtt-3
PLANNING AND DEVELOPl~EATt~c~n~~nt 2
•9-2.05 Required Yards and Open Spaces
Subdivision 2. Permitted Encroachments on Required Yards: The
Poll sting shall be permitted encroachments into setback and height
requirements except as restricted by other sections of this Code.
Subdivision 1. Existing: No yards, now or hereafter provided for a
building existing on the effective date of this Code shall subsequently
be reduced below, or further reduced if already less than, the minimum
yard requirements of this Code for equivalent new construction in any
zone.
a. In any yards:. posts, off street parking flues, sills pilasters,
z=~ lintels, cornices, eaves (up to three (3) feet), gutters, awnings,
opea__terraces, steps, sidewalks,-essential ..services, stoops, or
similar features provided they-do not extend five (5) feet above the
- __ _ - - _-
height of the principal structure or to a distance less than three
(3) feet from any lot.. line nor less_.,_thaa_one (1~ foot from any-
. __ _ _ - ---- _
existing or proposed driveway; yard- lights and nameplate signs,
-- ---
trees~ shrubs; plants; floodlights or other sources of light
illuminating authorized illuminated signs, or light standards for
illuminating parking areas, loading areas, or yard for safety and
security reasons, provided the direct source of Light is not visible
from the public right of way or adjacent residential property.
~rther ao _deck, exposed ramps (wheelchaw_^1:___uncovered porch,__or _ air
conditioner, shall be less than five (5) feet from a side or rear t i
yard"-line, and if is a front yard, a variance s al_ be req re .
Chimneys, flag poles and open fire escapes may not extend more than
five (5) feet above the principal structure or three (3) feet frcm
any lot line.
b. Inside and rear yards, fences thi.r_ty~ercent__.(34$-)-_open with -- ~ '
-____._
respect. to_ air movement; _walls_and_,hedges- six._(6 ) feet in height or ~ - f.'_
less; bays not to exceed a depth of three (3) feet or containing an
area of more than thirty (30}square feet, fire escapes not to
exceed a width of three (3) feet.
c. On a corner lot; nothing shall be placed or allowed to grow in
such a manner as materially to impede vision between a height of two
and one half (2 1/2) and ten (10) feet above the centerline grades
of the intersecting streets within a triangular area thirty (30)
feet from the intersecting street right of way lines.
d. In no event shall off street parking, structures of any type,
buildings, or other improvements caver more than seventy five
percent (75~) of the lot areas. In no event shall the landscaped
portion of the lot be less than twenty five percent (25P) of the
entire lot as a result of permitted encroachments.
31
~~•
E-~~ Qu~~t
Attac~.me""(~.t 3
~ ,
•
November 28, 1990
File No: 330-000-00
CONSULTING ENGINEERS
Maier Stewart & Associates Inc.
Ms. Susan Hoyt
City Planner
City of Falcon Heights
2077 W. Larpenteur Avenue
Falcon Heights, MN 55113
RE: DRIVEWAY ISSUES AND POSSIB!_~ STANDARDS
CITY OF FALCON HkiGHTS
Dear Ms. Hoyt:
Please find belovd a list of recommendations we would propose for stardards
regarding driveways within the City of Falcon Heights. By this list, we ha~•;e
addressed many issues, including width, s~_irFacing and dimen~ionai requirements
• relating to the individual lot. These are merely proposed standards meant to
stimulate discussion regarding the driveway issues, l~he incius~on of all of
these standards into a formally adopted driveway ordinance may nog be possible,
but at least the issues will have been raised and discussed.
The following items outline possible standards for driveways within the City or'
Falcon Heights:
1. All new or reconstructed driveways shall be permanent~iy surfaced, with
either concrete or asphalt, bet~r~een the street and the right-of-way
line (could aiso be required to garage).
2. The rn-inimum pavement thi~:.kness far asphal* driveways shad be two (2' )
inr!1P~ Of hlf;lilnin~~i!~ sNrfii.:~lnC On f01^"' ~~'~') 1n~.hes 0` .~n0i"Pudt:: i~a~~ Th?
mi nirrn;m pa~reinent thickness for ;:onrr ete c;ri veways slral i 'ria~ie s i x. ~ F;" i
inches of concrete on two (%") inches of aggregate base.
3, Th,e ~ti~idth or a standard single residentiai dri~,-eway shay: be ire ~~~t ~;-ide
at the street opening and 10 feet wide at the right-of--way line. The
width or a standard double residential driveway shall be 24 feet wide at
the street opening and 16 feet wide at the right-of-way line. The width
of a standard commercial/industrial driveway or driveways serving multi-
family residential homes shall be 35 feet wide at the street and a maximum
of 35 feet wide at the right-of-way line.
4. The minimum driveway slope, as measured from the edge of t .: st,'eet t~~~ 'she
• r i ght-of-way 1 i ne, steal 1 be 1% and the maximum dr i vev,~ay slope sfl.-~ i l be i0;~.
1959 SLOAN PLACE, ST. PAUL, MINNESOTA 55117 612-774-6021 Equal Opportunity Employer
,.
r~
•
CITY OF FALCON HEIGHTS
NOVEMBER 26, 1990
PAGE TWO
5. A permit must be applied for and approved by the City prior to any. work on
a driveway between the street and the right-of-way line. All applications
for site plan approval, building permits or Certificates of Occupancy shall
include a drawing of any proposed driveway access. The drawing shall be
drawn to scale and dimensioned.
6. All new driveways connecting to existing concrete curb and gutter section
shall be constructed with a five (5') foot radius. The existing concrete
curb and gutter at the driveway opening shall be removed from the nearest
joints to the driveway location. Saw cutting of the existing curb will
not be allowed. Concrete gutter shall be placed through the driveway
opening to properly drain the street. Expansion joint material shall be
placed at the curb, sidewalk (if applicable) and right-of-way line as part
of the driveway construction.
7. In areas where sidewalks currently exist, all new or reconstructed
driveways shall require 6" concrete sidewalk to be constructed to match
the existing sidewalk width.
8. No driveway access shall be located less than 40 feet from the inter-
section of two (2) or more street right-of-ways. This distance shall be
measured from the intersection point of right-of-way lines.
9. Driveway openings shall be a minimum of five (5) feet from the sideyard
property line.
10. The minimum distance between driveway openings on the same lot shall be
25 feet.
11. The minimum driveway angle to the street, at the driveway opening, shall
be 60 degrees.
Please contact Mark Graham if you have any questions
your convenience to further discuss this matter.
Sincerely,
MAIER STEWART AND ASSOCIATES, INC.
~~
~~
Terry J. Maurer, P.E.
i~'~~~~
Mark J. Graham, P.E.
We are available at
/ km
•
• DR~V~y~fJ11~ STQt~D~41~S _ ~ 1TY b~- ~ALCON N~~GNTS
Meeting Date 2/25/91
Agenda Item F-1
CITY OF FALCON HEIGHTS
PLANNING COMMISSION
ITEM DESCRIPTION: "Vermont Development Law May Have Saved its
Ban s ew or Times, 3/4/91
SUBMITTED BY: Susan Hoyt, Interim City Administrator
ACTION REQUESTED: For your information
•
•
F-1
~1Vlay nave ~avea 1-~a $d~~n~
,.. ByBARNABYJ.FEDER
~~ Vermont is the only New England
'state that has not had a bank failure
in' the current economic downturn,
and its strict environmental laws -
"oot shrewd Yankee banking -are
`widely credited with saving [he state
-from the worst excesses of the North-
•east's real estate boom.
- ~ "There are still problems here, but
~tlowhere like those in New Hamp-
shire, Maine and Massachusetts,"
said Thomas Menson, a former chief
!'operating officer of the Bank of Ver-
r ttwnt. Mr. Menson also spent the last
'five years as the top banking and
financial adviser to Madeleine M.
:"Kunio, who recently stepped down as
- Governor.
`_~ The environmental laws, known as
'~ Ac[ 250, required such a long review
process that they discouraged poorly
Capitalized developers. Mr. Menson
+'said the act "weeded out the poorer
''projects, and you only get well-capi-
' talized developers," and added, "You
don't get someone who made a profit
on one house suddenly trying to put in
a whole development."
The sharpest contrast, bank ana-
lysts say, is to [he situation in New
Hampshire, which has long been the
New England state with the most
laissez-faire attitude toward develop•
meat.
"I think all five of the largest banks
in New Hampshire will require Fed-
eral assistance unless the economy
turns around," said Gerard Cassidy,
who follows New England banks in
the Portland, Me., office of the Tuck-
er,Anthony brokerage firm.
Act 250, enacted 2l years-ago, has
some of the nation's toughest and
most time-consuming environmental
rules and procedures. It applies to all
commercial and public developments
as well as residential projects of 10
units or more. Projects are reviewed
by regional boards that consider 10
criteria: conformance to local plans,
water use, sewage disposal, energy
efficiency, soil erosion, effect on traf-
fic and municipal services, preserva-
Continued on Page C7
N
Ti.~,. .
/~~
~,Termont Development Laws`
=May_ Have Saved Its Banks, , } .~
~_~ s t ~ "~ is-also a forme,; cFisirman of the re- ~~
ued From First Business Page ` gional boattl` that reviewed Act 250°
applications in_ f]tittenden County ~:
-t ildlife habitats, historte sites, ;which includes Burlington an~ is the
agr cultural soil and esthe4es. ~' state's miost urbanized county~~
The reviews'serve as an umbrella ~' ~`
fot•othei'state'and localpe~mlts. Ver=
moot also has a stiff capital gains tax
on short-term land speculation that -
has helped to slow development:
Fewer than,~2 percent of" the
projects presented to the Act 250; re-
gional review boards are ultimately
denied permits, but many are m_ odi-
fied. For ma'or developments, get-
ting through ~e entire local and state
review process can take several
years and several million dollars.
This comparatively stric[,regulatory
climate has occasionally camped
profits at Vermont banks, said Wil-
liam Bruette Jr., the chief executive
of the_('hi[tenden Bank from 1984
until last year, when he moved to New
Jersey to head Paine Webber Int.'s
national banking operations. -
"Some projects that would have
been economically viable got halted
in their later phases, putting the
developers into cash-flow problems
that they wouldn't have had if they
had been allowed to go forward; ' Mr.
Bruette said.
-'But Mr. Bruette is one of many
bankers who are convinced that Ver-
mont benefited, on balance, from the
regulations. Not only were fewer
buildings constructed but those that
came on the market ended up being
more marketable because they were
more environmentally attractive.
~ ~ "A good loan depends on many of
~ the criteria in Act 250; ' said John
Ewing, president of the Bank of_ Ver-
mont in Burlington. "There are
ty of cases where developments
r lack of a good infrastructure,
ing things that banks don't nor-
. take into account." Mr. Ewing
A Troubled Regioa,<r ., ; u,. ,,~s _
Of course; Vermont's banks have`
not escaped New England's downturn'
unscathed. All of the state's leading'
banlts have recently reported sharp:
declines in profits and have set aside
more money to .covet bad loans..
Banknorth Group Inc., the, iargesf'
commercial bank, last month sus-
pended its quarterly dividend. And
the Chittenden Bank, the state's larg
est until Banknorth was formed in a
1989 merger, reported a $1.5 million
loss for 1990.
Among small, independent banks,
the weakest Vermont bank, Valley
Bank in White River Junction, which
is just across the Connecticut River
from New Hampshire, was formed in
1987 by entrepreneurs. It has little in-
~- volvement in Vermont real estate
development, and more than half of
its loans are in New Hampshire.
But over all, the Vermont banks re-
main strong by most historical meas-
ures, like the ratio of capital assets to
loans or the percentage of loans that
cause problems.
Too Close to'Ground Zero' '
New Hampshire bankers doubt,
however, that differences in environ-
mental regulations have anything to
do with [heir situation's being more
precarious. They contend that the
biggest factor is that New Hampshire
- and southern Maine -are so close
to Boston .that they have been
swamped. by growth stemming-from
the rapid expansion of the high-tech-
nology and military contracting busi-
nesses in eastern Massachusetts.
Condominiums and shopping malls
spread at a blistering pace over the
hills of southeastern New Hampshire,
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The New York Timex
while the market for vacation homes
flourished in the White Mountains
and other scenic areas.
When the Massachusetts economy
crashed, New Hampshire inevitably
crashed with it, they said. Vermont
was too tar from "ground zero;' as
the bankers now call Boston, to feel
the brunt of either the boom or the
bust.
Infusion of Cash
New Hampshire's vulnerability to
the dangers of rapid growth was
heightened by the conversion in the
1980's of several of the state's largest
mutual savings banks into publicly
held companies. Analysts said that
the conversions poured about $1.25
billion into the banks' coffers, adding
more than $10 billion to their lending
capacity and encouraging bankers to
listen eagerly to any developer who
walked through the doors.
Total deposits in New Hampsntre~s
banks rose to $21.3 billion in 1988,
from $9.7 billion in 1983. Vermont
banks, by contrast, are smaller and
serve a much more rural state where
deposit growth has been modest.
"1 think market forces created our
situation," said 'Marcel Veiileux, di-
rector of the New Hampshire Bank-
ers Association in Concord. "I don't
think stricter permitting would have
slowed us enough for us to be in as
good shape as Vermont. Massachu-
setts has much more regulation and
bureaucracy than we do, and it didn't
save them."
Some Vermont developers also
doubt that Act 250 has had much ef-
fect on the financial health of banks.
"It certainly limits overbuilding, but
not necessarily by weeding out the
worst projects; ' said Peter Judge,
owner of Judge Construction in Bur-
lington. "It's basically a political pro-
cessthathas supplanted zoning.ltad-
mits state agencies with conflicting
agendas and ritizens with an ax to
grind into the process."
Proposal for Change
i Edwin Granai, a Stale Senator and
real estate developer, has introduced
legislation to "streamline" Act 250.
One provision would exempt govern-
ment-mandated projects, like new
sewer systems and prisons, from re-
view under the act. Others are in-
tended to cut the number of oc^asions
'when developers must re-argue
issues like traffic impact before
state, regional and local agencies
with overlapping concerns.