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Item No: 7A Meeting Date: October 22, 2001 Type of Business: CB WK: Work Session; PH: Public Hearing; CA: Consent Agenda; CB: Council Business City of Mounds View Staff Report To: Honorable Mayor and City Council From: James Ericson, Community Development Director Item Title/Subject: Consideration of (1) Resolution 5627, a Resolution Approving a Development Review for an Expanded Billboard, and (2) Resolution 5634, a Resolution Approving a Wetland Alteration Permit, on City-Owned Land, 2373 County Highway 10, and Consideration of Purchase Agreement for an Expanded Easement Area. Date of Report: October 17, 2001 Introduction: Chris McCarver, representing Clear Channel Outdoor, owner of the billboard located on city-owned land on the north side of County Highway 10, is requesting approval of a development review and wetland alteration permit to permit an expansion of the billboard from 300 square feet to 672 square feet. Clear Channel owns a permanent easement for the 40’ by 40’ square plot upon which the sign is located. To expand the sign, an additional easement area would be necessary. The property is the former Midland Videen land that the City acquired through its land swap with TOLD Development Company. The property on which the sign is located is zoned PUD, Planned Unit Development. Discussion: At the Council’s meeting on October 8, 2001, there was discussion regarding this request. The Council directed staff to work with the applicant in an effort to renegotiate the terms of the easement purchase agreement. The point of contention among some of the Council members was that the annual rent ($7,000) did not include any adjustments for inflation. Clear Channel has since agreed to maintain the terms of the original agreement as is, with the addition of an inflator tied to the CPI or 3%, whichever is greater. Per the revised agreement, The City would be paid $50,000 at the time of permit issuance and then $7,000 the second year, with the annual payments increasing by at least 3% every year thereafter until such time that the billboard is removed. Information from Previous Report: According to the City’s recently adopted Sign Code, the billboard is considered a legal, nonconforming sign. Section 1008.13, Subd. 1 of the Sign Code states the following: “Structural alterations, enlargement or re-erection are permissible only where such alterations would not increase the degree of the nonconformity of the sign.” City staff interprets this to indicate that the sign can be enlarged because the degree of nonconformity remains unchanged with an expansion. The nonconformity is based not on