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911.040. H. Motor Vehicle Sales Lots. Except in cases where the permitee will lease <br />or own. but not physically occupy designated outdoor sales /display /storage area. the <br />city may issue a Conditional Use Permit for an outdoor sales lot, provided that: <br />Paragraphs 1 -9, no change. <br />10. Where the applicant is applying for a motor vehicle sales lot conditional use <br />permit but will not occupy the designated sales /storage /display area with vehicles or <br />equipment, the City may, at its discretion, waive the provisions of this ordinance relating <br />to square footage of principal building (Section H.1.), square footage of display area per <br />vehicle (Section H.3), separation from other licensees and residential areas (Section <br />H.7.) and number of eligible licenses (Section H.8.). All other performance standards of <br />this ordinance and other applicable regulations shall continue to apply. <br />This text would allow office -only applicants to locate in office locations without the <br />limitations placed on those that have display lots on -site. At issue for the City has been <br />the state's purpose in requiring that offices have on -site sales lots, and whether this <br />ordinance would permit an applicant to circumvent a state requirement that serves other <br />objectives beyond land use regulation. Second, and important for the City, is <br />enforcement of this type of regulation. In a parking lot of an office building, five spaces <br />would have to remain empty to meet this requirement. Monitoring compliance with this <br />standard could be a problem. <br />Finally, the applicant has applied for a CUP under this clause, on the anticipation that <br />the City would adopt the amended text. It should be pointed out that there are other <br />companies on a waiting list that have asked for a motor vehicle sales lot permit if one <br />becomes available. While it may be assumed at this time that each of the waiting list <br />applicants would want outdoor display, the applicant should be aware that others may <br />be interested in pursuing this type of permit as well. Assuming that this applicant would <br />be in line for a permit following an adoption of this amendment, the proposed location <br />appears to meet the requirements for the ordinance, including parking supply and site <br />improvements as specified. <br />Summary and Recommendation <br />Adoption of the amendment would permit office -only retail automobile or equipment <br />dealers to locate in Little Canada office buildings without the need for a display lot. <br />Planning staff has two primary concerns with this type of ordinance. First, the purpose <br />of the state requirement for an on -site display lot is not clear to staff. We are reluctant <br />to recommend an ordinance that effectively circumvents the intent of the state <br />regulations. Second, it could be that this type of ordinance would present enforcement <br />problems. In the proposed location, this concern is probably less likely, since the <br />applicant sells heavy equipment and not automobiles, and the site is a well - developed <br />office parking lot. However, in other locations, this type of allowance could become an <br />enforcement issue. <br />