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Mermaid Staff Report February 4, 2009 Page 3 The proposed property line would separate the Mermaid from the hotel. Another issue that arose during the City’s review of the three-lot plat in 2008 (and is still a concern today), is that the proposed subdivision would put a property line running through the structure to formally separate the Mermaid from the hotel. To allow this, the building code may require additional firewall construction between the structures to have each building on its own lot. This is an issue because the fire code does not allow for any openings where the property line runs through the building. There is currently a hallway and a set of doors that connects the Mermaid to the hotel. The fire code would require this opening to be permanently closed off, but the Minnesota Department of Labor & Industry has allowed openings if each building/property owner signs a “Hold Harmless Agreement.” By not allowing openings between separate buildings, the fire code is trying to prevent or reduce the fire spread or damage done to the adjoining building if there were to be a fire. The Hold Harmless Agreement would acknowledge the additional liability due to the opening between the buildings. City Attorney Scott Riggs also has agreed that such an agreement is possible as an alternative as long as the document has adequate protective language running in favor of the City. Deadline for Action: The City accepted this application on January 21, 2009 and in accordance with MN Statute 15.99, the City must make a decision about this request within 60 days of application acceptance. As such, the deadline for City action for this request is March 19, 2009. Alternatives: The Planning Commission should review the plans and discuss the revised preliminary plat. The Planning Commission may take one of the following actions related to the Preliminary Plat request: 1. Approve the revised Preliminary Plat as requested. 2. Deny the request. To consider this option, the Commission will need to direct staff to prepare a resolution with findings of fact to support the denial recommendation. 3. Table action on the request. This option would be appropriate if the Planning Commission should need additional information or more input before they can make a decision. Recommendation: City staff is recommending approval of the revised Preliminary Plat for the Mermaid property as requested. Staff has attached Resolution 899-09 for your consideration.