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HomeMy WebLinkAbout04/08/2010 EDAC Minues 1 APPROVED CITY OF LINO LAKES ECONOMIC DEVELOPMENT ADVISORY COMMITTEE MINUTES DATE: April 8, 2010 MEMBERS PRESENT: M. Keller, J. Stranik, J. Schwartz, B. Combs, B. Menke, K. Corson, L. Masonik, D. Johnson MEMBERS ABSENT: None OTHERS PRESENT: M. Divine, J. Smyser, D. Roeser APPROVAL OF MINUTES The Minutes of February 4, 2010 were approved. EDAC OFFICERS Ms. Keller moved to nominate Joe Stranik as chair. Mr. Corson seconded the motion. Motion approved unanimously. Ms. Keller moved to nominate Brian Menke as vice-chair. Mr. Stranik seconded the motion. Motion approved unanimously. LAKE DRIVE NONCONFORMING USES ISSUES City Planner Jeff Smyser led a discussion regarding planning and redevelopment of sites with nonconforming uses. He gave members background on the tools cities use to plan land uses within the city, including the Comprehensive Plan, which defines areas for broad land uses, road systems and infrastructure. Zoning and subdivision ordinances are examples of official controls designed to be more specific to implement the larger plan. Nonconforming uses and structures are those that do not conform to current zoning standards. Nonconforming could range from lot size to architectural standards. They are buildings and uses that are intended to be phased out. An existing nonconforming use or building may continue its use as long as it doesn’t expand. If a use changes, the new use must conform. The goal is to ensure over time the site will conform to current standards. Mr. Smyser noted that the new draft Comprehensive Plan began with a citizen panel that visited numerous sites to determine what the sites should be planned for. Based on the conclusions, the new city’s land use map was created. One site they visited was the catalyst for the discussion today—a number of properties on Lake Drive called Golden Rice Lake Terrace or the “Golden Triangle”. Mr. Roeser commented that the city council was working on things that maintained the integrity of the city while being pro business. He is looking for some time of phased plan for nonconforming uses on Lake Drive. He would rather that buildings didn’t fall into disrepair until such time as redevelopment can occur. Mr. Corson mentioned revolving loan funds for blighted areas, such as Ramsey’s city fund where the landowner must contribute 50% of the cost of improvements to be eligible. 2 The citizen panel noted that Lake Drive is a high visibility area and a gateway and concluded it should be designated as commercial. This site will be desirable eventually, but isn’t now because utilities are a good distance from the site. It will take significant development to pay for utility extensions. The city charter also controls how utilities can get extended. Often development pays for utilities. Mr. Masonik asked if the developer has to pay even for those who hook up later. Mr. Smyser said that typically the developer pays for it, or the city provides assistance using TIF to mediate the cost, or it’s possible that other properties along the route can agree to pay when they hook up, depending on whether they agree to such a plan. Ms. Schwartz said some cities have a policy that if anybody hooks up within a certain period, they pay a portion. Mr. Smyser said it is counter to the city’s redevelopment policy goal if individual property owners make significant investments on their nonconforming sites. Businesses that invest in their properties and have success are likely to stay over long periods and the city can’t make them leave. The particular site that brought up this discussion is currently paying about $3,000 in city taxes and the building value is expected to drop by a third in 2011. Further investment in the building will have minimal impact on the city’s tax base. A property owner has a right to use the building for its existing use. If the use changes, as it will in this building because it’s been empty, it must meet the current zoning ordinance and building codes. The city can change its ordinances if it chooses, but the city can’t change building codes, including the adopted fire protection code. That part of the code, which is part of the Centennial Fire District’s joint powers agreement, requires sprinklers in that size building. There’s no city water to this site, so the owner could only put in an on-site sprinkler system, which is very expensive. Mr. Stranik asked if it were not for the charter, would the city be bringing utilities to the site to speculate on development? Mr. Smyser said many cities would do it. Mr. Roeser said the optimum solution is a developer who could bring utilities to the site, but asked what is the short term solution? How do we fix the current problem? Discussion included the following ideas and options:  Blaine assembles land and sells to developers.  Find funding sources that could allow the city to purchase blighted properties and hold until development occurs.  Find ways to bring utilities to the site.  Should the city change its policies/ordinances to allow interim uses in older buildings in the city? Changing ordinances affects other properties around the city as well. Could this have unintended consequences?  Buildings should be improved when the opportunity presents itself.  Citizen committees over the past several years have said we want quality redevelopment of nonconforming sites and allowing interim uses is contrary to redevelopment.  It’s a combination of issues: the building must conform in use and meet the building code. 3  City of Ramsey has transitional zoning on Highway 10 so that substandard properties can’t be over-improved. This is a safeguard and also everybody knows up front that the uses are restricted and interim. Allows redevelopment to occur that is financially feasible.  Put fences around the outside storage.  If they are successful with outside storage they are likely to stay, which puts off redevelopment.  Make the council aware of the tools available.  What are we saying to the building owner? If you buy a building, and the business fails, if you want to sell, you can’t unless somebody comes in and pays for the entire sewer line. You’ve lost all your value. The city should allow continued use and possibly another use in the building. Otherwise it’s unfair to the property owner to say you can’t improve the property to make it saleable.  Conditional use permit to make sure that whatever goes in is of the best quality, and has some additional review.  Can’t do any significant additions, but can do maintenance.  We want to shoot for commercial, just how do we get there?  Create an overlay of transitional commercial rather than a new zoning category to make for easier approvals. (Could include 49 Club and other properties on Lake Drive)  Is the city in the land and real estate business? Mr. Smyser reminded members that a use that is operating and is nonconforming, can continue. It’s when the use moves out and another use wants to move in that is nonconforming. Mr. Roeser said some of these ideas are good, or potentially finding someone who would build a self storage area, which can be somewhat temporary. Ms. Schwartz wondered where the city was in reviewing and updating the zoning ordinance in order to implement the draft comp plan, and could this issue be a part of that? Mr. Smyser said to date staff has focused on environmental ordinances, such as stormwater and greenways. Any amendments to the zoning ordinance will have to go through the boards. Mr. Roeser questioned whether there was government funding for wetland improvements. Staff was not aware of that. Funds are available for brownfield clean-up, but that takes an analysis of a site. Mr. Roeser stated that he hoped that EDAC felt they had more of an ear of the council. As an aside, he informed the board that in 2009 there were 204 houses sold in the city, including foreclosures, and the majority were two-story townhomes. Next meeting will be May 6, 2010 at 7 a.m. Meeting adjourned.