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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 I~ 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 1 • ' • 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 2 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 3 • • • 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 1 r~ L 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 • 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 • ' 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 4 • • 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 5 • • 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 • ~6o L ~Al_L 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. • MINUTES 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 • 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 C] . ~~,.~~~„r., :~ ~.. 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, ~- i \ 1~ N.H. ~ ~ ~ ,1 ~y ~: / ~~ ^~- Su.nro, F D 1. C:~, !'; 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.