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Respondents James Perkins, et al., own lakefront property located on Willow Creek Road. In 1989, the city approved a subdivision of the property into three lots along with nine variances. In 1998, Perkins filed an application with the city for revised preliminary platting. In connection with the application, Perkins attended several meetings of the city's staff development review committee and the planning commission, and met with the Minnesota Pollution Control Agency (MPCA) to assure that the proposed shared septic system complied with state standards. In January 1999, the planning commission reviewed the request and approved the revised preliminary plat by a 7 -0 vote. On March 2, 1999, the city council approved the preliminary plat by a vote of 3 -2. The council was provided with a staff summary of the requested council action, which described the joint septic system as acceptable and summarized and attached three Department of Natural Resources (DNR) letters. The DNR letters detailed the standard minimum lot size and Lakeshore setback, and commented on the heavy burden of showing hardship required for variances. The council members voting for the revised plat all expressed the opinion that the new plan was "more acceptable" or "better" than the previously approved 1989 plan. On March 23, 1999, Nolan's attorney wrote the city attorney requesting that the city "formally acknowledge" that the preliminary plat vote failed on a 2 -2 vote of disinterested council members because council member Ross Thorfinnson, Jr. had a disqualifying conflict of interest. The letter asserted that the law requires that council member Thorfinnson's vote be set aside because he shares office space with attorneys Thomas Thorfinnson and Ross Thorfinnson, Sr., and the Thomas Thorfinnson and Ross Thorfinnson, Sr. law firm represents the Perkins in related litigation. On April 9, 1999, the city attorney sent a responsive letter disagreeing with the legal conclusion that Ross Thorfinnson, Jr. had a disqualifying conflict of interest. On May 13, 1999, the city's board of adjustments and appeals denied the requested variances related to the preliminary plat. On July 6, 1999, the city council reviewed the variance request and reversed the board by a 3 -2 vote. The city attorney spoke at length about the legal standard for variances, explaining that: The standard to which the Council is held is not that there cannot be any other reasonable use of the property, but a determination of whether this is a reasonable use of the property under the circumstances, and one that would not otherwise be allowed because of the requirement of the code. The council memorialized its July 6 decision with findings that included the following: 8. The Preliminary Plat contains an improvement in the setback for Lot 1, which under the Preliminary Plat is 100 feet from the shoreland, whereas under the 1989 plat, it was 80 feet. 9.The Preliminary Plat contains an improvement in the setback for Lot 2, which under the Preliminary Plat is 75 feet from the shoreland, whereas under the 1989 plat, it was 40 feet. - 2 7 -