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HomeMy WebLinkAboutAgenda Packets - 2004/04/05 CITY OF MOUNDS VIEW CITY COUNCIL WORKSESSION AGENDA Monday April 5, 2004 7:00 p.m. ROLL CALL: Linke, Quick, Marty, Stigney, Gunn PUBLIC COMMENT Citizens may speak to issues not on tonight’s agenda. Before speaking, please give your full name and address for the minutes. Also, please limit your comments to three minutes. Agenda Items Discussed by Consensus SPECIAL PRESENTATION: YMCA QUARTERLY REPORT PRESENTATION _______ 1. Review Proposed Amendment to Zoning Code Relating to Temporary Outdoor Structures in Commercial and Industrial Districts. _______ 2. Trunk Highway 10 Noise Wall / Berm Project (Presentation by Ulteig Engineers – No Report ) _______ 3. Review Building N PUD Amendment Request _______ 4. Review Proposed Amendment Regarding Temporary Outdoor Sales _______ 5. Long Range Financial Plan. _______ 6. Review Process for Council Commission Appointments _______ 7. Review Golf Course Study Options _______ 8. Review Draft Adult Use Ordinance Amendments _______ 9. Discussion Regarding Proposed Suburban Court Facility Item No: 1 Meeting Date: April 5, 2004 Type of Business: Worksession Administrator Review: _____ City of Mounds View Staff Report To: Honorable Mayor and Mounds View City Council From: James Ericson, Community Development Director Item Title/Subject: Review and Discuss Issues Associated with Temporary Tents and Membrane Structures in Commercial Districts Introduction: The Mounds View Zoning Code does not currently address the issue of temporary tents and membrane structures in commercial districts. In order to address this deficiency, the Planning Commission held multiple meetings on the issue and on February 4, 2004, the Commission approved Resolution 752-04, a resolution recommending an amendment to the Zoning Code by adding “Temporary Outdoor Tents and Membrane Structures” as a permitted “Interim Use” in commercial and industrial districts. Discussion: To reach their decision, the Planning Commission reviewed Mounds View’s City Code, the Fire code and the Building Code; it reviewed Mounds View’s parking requirements as well as requirements from other communities and considered design and location issues. The Commission was presented with a number of options, which included the following: 1. Should temporary tents and membrane structures be allowed in commercial use districts? 2. If so, should they be allowed by right? Should they require a permit? 3. Should such a structure be allowed only with an Interim Use Permit (IUP) or a Conditional Use Permit (CUP)? The Planning Commission felt that such structures could be allowed under certain circumstances such as with an IUP or CUP. In this case, an IUP would seem more appropriate since, as the title implies, the approval would be for a specific period of time; as opposed to a CUP which would run with the land forever until formally revoked or terminated. An Interim Use Permit, like a CUP, may have conditions attached to it. The Planning Commission agreed that the following conditions would be suitable: a. The tent or membrane structure would need to comply with all provisions of the Fire Code and receive an annual fire permit issued by the Fire Marshal. b. Adequate parking to accommodate the occupancy would need to be provided at a ratio of one parking space per 40 feet of tent area. (The City Council may waive the parking requirement if it is shown the site has sufficient existing parking capacity.) Commercial Tents Report April 5, 2004 Page 2 c. The structure may not be located in or on a parking lot displacing parking stalls unless it is shown an adequate amount of parking remained. d. A Zoning Permit would be required annually, the duration of which cannot exceed 180 days. e. The membrane or cover shall be constructed of a durable reinforced material to withstand wind and snowloads. f. The structure shall be anchored to the ground. g. The tent or membrane structure shall be maintained in a good condition. Deficiencies shall be corrected as soon as practicable. h. The IUP can be reviewed at any time by the City if problems arise which would necessitate revision or termination of the IUP. i. The IUP would become null and void if the property owner fails to comply with the provisions of the permit or if the structure is removed for more than a one-year period, or if the property undergoes a change of ownership. The Planning Commission also debated the appropriate duration of an IUP for a tent or membrane structure. The outcome of this was that each tent or membrane structure could warrant different durations depending upon different site-specific circumstances. The Mermaid’s tent, for example, could be approved for an initial five-year period with five-year extensions, while another commercial tent might justify a one -year approval with subsequent two-year extensions. Differences may hinge on available parking, proximity to residential districts and the nature of the proposed use. Recommendation: Review and consider the above draft conditions associated with temporary structures in commercial districts. If the Council feels the requirements listed are adequate, staff will prepare an ordinance for action at a subsequent meeting. If additional information is needed in response to your review, staff will conduct the necessary research and/or provide the Council with an update at your next worksession, currently scheduled for May 3, 2004. _____________________________________ James Ericson Community Development Director City of Mounds View Attachment: Planning Commission Resolution 752-04 MOUNDS VIEW PLANNING COMMISSION RESOLUTION NO. 752-04 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION RECOMMENDING APPROVAL OF A CODE AMENDMENT TO THE ZONING CODE REGARDING TEMPORARY STRUCTURES IN COMMERCIAL/INDUSTRIAL ZONING DISTRICTS WHEREAS, it has come to the attention of City Staff, the Planning Commission and City Council of a deficiency in the Zoning Code in that there is no language pertaining to temporary tents and membrane structures in commercial and industrial zoning districts; and, WHEREAS, when there is no language in the zoning code relating to a certain type of land use, that specific use is deemed to be prohibited; and, WHEREAS, the Planning Commission feels a code amendment should be adopted to allow by Interim Use Permit tents or membrane structures in commercial or industrial zoning districts as long as under certain conditions can be satisfied; and, WHEREAS, the Planning Commission has reviewed the following documents regarding this action: a. Photographic documentation b. Building and Fire Codes c. Staff Reports d. Comparables from other cities e. Proposed amendment language NOW, THEREFORE, BE IT RESOLVED that the Mounds View Planning Commission recommends approval of an amendment to the Mounds View Zoning Code substantially similar to the following language to allow tents and membrane structures by Interim Use Permit with the following conditions: i. The tent or membrane structure would need to comply with all provisions of the Fire Code and receive an annual permit issued by the Fire Marshal. ii. Adequate parking to accommodate the occupancy would need to be provided at a ratio of one parking space per 40 feet of tent area. (The City Council may waive the parking requirement if it is shown the site has sufficient existing parking capacity.) iii. The structure may not be located in or on a parking lot displacing parking stalls unless it is shown an adequate amount of parking remained. iv. A Zoning Permit is required annually, the duration of which cannot exceed 180 days. v. The membrane or cover shall be constructed of a durable reinforced material to withstand wind and snowloads. vi. The structure shall be anchored to the ground. vii. The tent or membrane structure shall be maintained in a good condition. Deficiencies shall be corrected as soon as practicable. viii. The IUP can be reviewed at any time by the City if problems arise which would necessitate revision or termination of the IUP. ix. The IUP would become null and void if the property owner fails to comply with the provisions of the permit or if the structure is removed for more than a one- year period, or if the property undergoes a change of ownership. NOW THEREFORE, BE IT FINALLY RESOLVED that the Mounds View Planning Commission directs staff to forward this resolution to the City Council prior to approval of the minutes. Adopted this 4th day of February, 2004. _____________________________________ Gary Stevenson, Chairperson ATTEST: _____________________________________ James Ericson Community Development Director (SEAL) Item No: 3 Meeting Date: April 5, 2004 Type of Business: Discussion Administrator Review: ____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Kristin Prososki, Planning Associate Item Title/Subject: Review Proposed PUD Amendment Regarding “Building N” in Mounds View Business Park Located at 5145 – 5151 Program Avenue Introduction: In 1994, Everest Development applied for a Planned Unit Development (PUD) on the site located at 5145 – 5151 Program Avenue, known as “Building N”. At that time, the City Council granted final plat approval. The site was not developed until 1999, when the applicant came before the City with an alternative plan, which was approved by the City Council on December 16, 1998. The site contains 6.89 acres and the existing building is 69,167 square feet. Since “Building N” was constructed, it has been partially occupied by Disetronic. Disetronic utilizes just less than 30,000 ft² of the building for the sale and customer service of medical equipment. The lease ends in September of 2004, but the company plans to be moved out of the space sometime during the summer of 2004. The other portion of the building (40,000 ft²) has been vacant since it was built. The current owner, Michael Investments, has attempted to lease the space, but until now has not succeeded in securing a tenant. Michael Investments has reached an Agreement for Purchase with Bethlehem Baptist Church (BBC), contingent upon proper City approval. Although a formal PUD Agreement does not exist, Staff reports and other records indicate that the PUD was to be used as office/flex, with possible uses being office, laboratory, production, high tech assembly or storage uses. BBC is requesting that the City consider amending the PUD to allow “religious institution” as a permitted use for the “Building N” site. The Planning Commission discussed this request at two of their previous meetings. Although the Commission had many concerns about the financial implications, they are recommending approval from a land use perspective. Discussion: The Zoning Code allows religious institutions as conditional uses in residential districts. There are seven criteria that a church must meet to obtain a Conditional Use Permit. Although these are the requirements for residential areas, they should still be evaluated for a religious use in any district. Conditional Use Criteria: 1. Front yard depths shall be a minimum of thirty-five (35) feet. The front setback for “Building N” is one hundred fifty-two (152) feet at its minimum. 2. Side yards shall be no less than thirty (30) feet. The side setback is fifty-four (54) feet at its minimum. PUD Amendment Report Building N March 3, 2004 Page 2 3. Minimum lot area shall be no less than one (1) acre, or as provided in Section 1104.02, subdivision 2b(3). This property has an area of 6.89 acres. 4. Adequate screening from abutting residential uses and landscaping is provided in compliance with subdivision 1103.08 of this Title. This property does not abut any residential uses. 5. Adequate off-street parking and access is provided on the site or on lots directly abutting or directly across a public street to the principal use in compliance with Chapter 1121 of this Title and that such parking is adequately screened and landscaped from surrounding and abutting residential uses in compliance with subdivision 1103.8 of this Title. There are currently 344 parking spaces on site. Parking spaces would be in highest demand on Sunday mornings when the worship sanctuary would be in use. The sanctuary would seat between 800 and 1300 people. The Zoning Code requires one parking space per 4 seats for a church use. Using the higher projection of 1300 seats, the Zoning Code would require 325 parking spaces, which the parking lot currently satisfies. In addition to the existing parking, BBC plans to create additional spaces near the current loading docks, if necessary. Parking agreements with nearby business has also been discussed as a possibility if the current parking doesn’t meet BBC’s needs. 6. Adequate off-street loading and service entrances are provided and regulated where applicable by Chapter 1122 of this Title. The property currently meets the loading requirements in Chapter 1122. 7. The provisions of Section 1125.01, subdivision 1e of this Title are considered and satisfactorily met. An amendment to a Planned Unit Development is processed as would an amendment to an approved Conditional Use Permit, which is to say that the procedural requirements of Section 1125 of the Zoning Code would be followed. Section 1125 requires that the Council review the request, taking into consideration any and all potential adverse effects of the proposed amendment. Potential Adverse Effects: A. Relationship to Municipal Comprehensive Plan. Mounds View’s adopted Comprehensive Plan identifies the “Building N” PUD site as Light Industrial. The proposed use within the PUD does not fall into this future land use designation, however, the building exterior will experience only slight modification and will still blend with surrounding buildings. In addition, if “Building N” were used as a church, Staff feels that it would not have a negative impact on the surrounding properties. B. The geographical area involved. The site is located on Program Avenue, within Mounds View Business Park East. The parcel is bounded to the south and east by Program Avenue, which has access to Highway 10. Days Inn and CG Hill are to the west of the property and Jonco Die Company is directly to the north. C. Neighborhood impact. As previously mentioned, the original planned use for this particular PUD Amendment Report Building N March 3, 2004 Page 3 parcel was office/industrial. An office or industrial use would generate traffic primarily from Monday through Friday, most likely between the hours of 6 AM and 6 PM. A religious institution, however, would generate traffic primarily on Sundays between the hours of 8 AM and 1 PM. A church use would probably not have a negative impact on the surrounding area because most of the traffic generated from the church would be at the opposite times that traffic from the surrounding uses is generated. D. The character of the surrounding area. The properties surrounding “Building N” are all zoned PUD or B-3, Highway Business. Across the street to the south are RJ Riches and 35W Auto Repair. North of “Building N” is Jonco Die Company and to the west are CG Hill and Days Inn. Program Avenue borders the property to the east. The existing building would not be out of place in this industrial/business area. E. The demonstrated need for such use. BBC has found that they continue to grow and expand their membership and in turn, require more space to meet the needs of the membership. BBC is looking for a large building in the north Metro area with good highway access. “Building N” has been underutilized since it was constructed five years ago, and BBC will meet the need of filling and using the space. Other Related Issues: Building Usage In addition to the main worship sanctuary, BBC would also be utilizing the building for offices and classroom/meeting space. BBC currently has between 70 and 80 employees and estimates that there will be 6 employees at the North Campus, plus support from staff members from their Minneapolis location. At this time, BBC has no plans for non- church uses in “Building N”, but the potential exists that they may lease some space to a business. “Building N” currently has an unfinished interior (See Attached Photos). BBC plans to finish the space and make some changes to the building. Possible changes include adding a canopy/driveport area for dropping off passengers, raising the roof or lowering the floor to create higher ceilings, removing the loading docks, and additional landscaping. BBC would also add new signage to the building and would work with Staff to meet the Code requirements. Traffic/ Access “Building N” has good highway access to both Highway 10 and Interstate 35W. As previously stated, most of the traffic that would be generated by BBC would be at opposite times of the surrounding businesses. BBC plans to hold Sunday services at 9:00 AM and 11:00 AM and on Wednesday evenings. Currently, BBC is holding their north campus services at Northwestern College. There are roughly 810 people in attendance on Sunday mornings, split between two services. Staff contacted Jane Goedeki, Services Manager for Northwestern College, to ask questions about any traffic issues generated by BBC. Ms. Goedeki stated that they too initially had some concerns about traffic, especially considering that there is only one point of access onto the campus. She said that they didn’t experience any traffic back-ups or other problems and it ended up being a non-issue. Financial Impact Staff conducted research to find out if other cities in the metro area have PUD Amendment Report Building N March 3, 2004 Page 4 had similar requests and if they allow churches in commercial and/or industrial districts. Staff found that many of the surrounding cities, such as Blaine, Brooklyn Center, Arden Hills and St. Anthony, have a code similar to Mounds View, whereby churches are permitted in residential districts only. Staff also found that many of the metro area cities including, New Brighton, Brooklyn Center, Maplewood, Minneapolis, Burnsville and Apple Valley do allow churches in commercial districts, usually as a conditional use. Staff was aware of a situation in the City of Brooklyn Park where a church moved into an industrial district. The City and the church have a service charge agreement. The agreement is based on the assessed value of the building. Staff contacted many of the cities that allow churches in commercial and industrial districts to ask if they too have similar service charge agreements. Staff could not find a similar arrangement among the other cities. “Building N” is part of Tax Increment Financing (TIF) District #1. The Development Assistance Agreement between the Mounds View Economic Development Authority and Michael Investments was signed on April 26, 1999. Under the current TIF note, the City receives 10% of the increment generated, which currently equals $5,223.80. If BBC were to purchase the property, the TIF note would be assigned to them. Being that BBC is a non-profit entity, the City would eliminate the note and would receive no money because there are no taxes generated. The existing TIF agreement ends in 2014, at which point the City would receive it’s full share of the taxes generated by “Building N”. If levy limits are still in place in 2014, the City would not actually see an increase in the budget, but other properties within the City would see a decrease in taxes. If BBC were to purchase “Building N”, the City would not receive any payment and other properties within the City would maintain their current level of taxes. Staff discovered that the City of Minneapolis is currently going through a very similar situation as Mounds View. Minneapolis recently had a developer sell a building located in a TIF district to a non-profit entity. After discussion within the City of Minneapolis as to how to deal with the situation, they came to the conclusion that they would do nothing. They considered establishing a service charge agreement or a payment in lieu of taxes, but ultimately decided against it because they felt that it would be considered unfair to single one non-profit out to make payments, while the other non-profits within the city are not obligated to do so. The difference between Minneapolis’s situation and Mounds View’s situation is that Minneapolis had no choice in allowing the non-profit to locate in the TIF district. In our situation, a church is currently not a permitted use within its proposed location. Staff has had discussions with representatives of BBC regarding a possible service agreement or payment in lieu of taxes between the church and the City. The church elders have approved the creation of an annual $25,000.00 Mounds View Service Project Fund. (See Attachment #7) Impact to Potential Future Uses Under Chapter 500 of the Municipal Code, allowing a church to locate in “Building N” would restrict buildings within five hundred feet from obtaining an intoxicating liquor license. Section 502. 04 Subdivision 2(c) states that a license will not be granted to a building within five hundred feet of a church or school unless the business receives 60% or more of it’s annual gross sales revenue from food sales. Attachment five of this report shows the buildings that would be affected by the five PUD Amendment Report Building N March 3, 2004 Page 5 hundred foot buffer. The distance is measured from the edge of the building requesting the liquor license to the edge of the church property. There are separate provisions in the code for a non-intoxicating liquor license. If the Council is uncomfortable with the PUD amendment, the amendment can be denied based on the fact that the church is a dissimilar use to the surrounding uses and that it is considerably different than the uses intended for the “Building N” PUD. Recommendation: Discuss the proposed PUD amendment and if necessary, direct Staff to gather more information for the April 12, 2004 City Council meeting. Respectfully submitted, Kristin Prososki Planning Associate Attachments: 1. Development Application 2. Zoning Map 3. “Building N” Site Plan 4. Photos of “Building N” 5. 500’ Buffer of “Building N” Map 6. Planning Commission Resolution 753-04 7. Memo Provided by BBC 8. Additional Information Provided by BBC PUD Amendment Report Building N March 3, 2004 Page 6 PUD Amendment Report Building N March 3, 2004 Page 7 Zoning Map Building N PUD Amendment Report Building N March 3, 2004 Page 9 PUD Amendment Report Building N March 3, 2004 Page 10 Photo of “Building N” Interior “Building N” - View from South Loading Docks – View from North PUD Amendment Report Building N March 3, 2004 Page 11 Building N PUD Amendment Report Building N March 3, 2004 Page 12 MOUNDS VIEW PLANNING COMMISSION RESOLUTION 753-04 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION RECOMMENDING APPROVAL OF AN AMENDMENT TO THE MOUNDS VIEW BUSINESS PARK EAST PUD BY ADDING “RELIGIOUS INSTITUITION” AS AN ALLOWED USE ON LOT 1, BLOCK 1, MOUNDS VIEW BUSINESS PARK EAST 2ND ADDITION; MOUNDS VIEW PLANNING CASE PA04-001 WHEREAS, the Mounds View City Council approved the Mounds View Business Park East Planned Unit Development (PUD) on October 24, 1994; and, WHEREAS, the lot located at 5145 Program Avenue, legally described as Lot 1, Block 1; Mounds View Business Park East 2nd Addition, was approved by the Council for a office/industrial/flex use; and, WHEREAS, having been unable to lease the building with an office or industrial business, the developer wishes to amend the PUD Agreement by adding “religious institution” as an allowed use for the site; and, WHEREAS, the Planning Commission has reviewed this request and has examined the potential adverse effects that could result from such an amendment. NOW, THEREFORE, BE IT RESOLVED that the Mounds View Planning Commission makes the following finding of fact related to this request: 1. The lot in question, 5145 Program Avenue, is zoned Planned Unit Development (PUD) and the allowed use for the site is office/flex. 2. The building in question remains vacant and as such the developer has requested an amendment to the PUD to allow for a church to occupy the site. 3. The proposed use should not create an excessive burden on any public facilities or utilities that serve the area. 4. The property is bordered to the north and west by industrial/business uses. To the south and east is Program Avenue. The change of use should have no depreciatory affects upon this area. 5. The appearance of the structure will not have an adverse effect on the PUD in that the exterior of the building would receive only slight modification. PUD Amendment Report Building N March 3, 2004 Page 13 6. The use would not create traffic hazards or congestion because the traffic generated will be at complementary times from the surrounding uses. 7. Adequate utilities, access roads, drainage and necessary facilities have been provided. BE IT FURTHER RESOLVED that the Mounds View Planning Commission, based upon the above finding of fact, does hereby recommend that the Mounds View Business Park East Planned Unit Development (PUD) be amended such that the use “Religious Institution” be added to those uses expressly permitted on Lot 1, Block 1, Mounds View Business Park East 2nd Addition. BE IT FINALLY RESOLVED that the Mounds View Planning Commission directs staff to forward this resolution to the City Council prior to approval of the minutes. Adopted this 3rd day of March, 2004. _____________________________________ Gary Stevenson, Chairperson ATTEST: _____________________________________ James Ericson Community Development Director (SEAL) Item No: 4 Meeting Date: April 5, 2004 Type of Business: Discussion Administrator Review: ____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Kristin Prososki, Planning Associate Item Title/Subject: Consideration of Possible Revisions to the Zoning Code Pertaining to Temporary Outdoor Sales; Special Planning Case SP-113-02 Introduction: Chapter 504 of the Municipal Code requires that peddlers, solicitors and transient merchants obtain a permit before conducting sales. The Zoning Code (Chapter 1100), however, requires a conditional use permit for outdoor sales in a B-3, Highway Business District, and B-4, Regional Business District. Past practice has been to issue permits for temporary sales, which is in violation of the Zoning Code. According to Code, a conditional use permit should be obtained for any type of outdoor sales. Discussion: Through a conditional use permit, the Zoning Code allows “open or outdoor service, sales and rental” as a principal or accessory use in a B-3, Highway Business District and as an accessory use in a B-4, Regional Business District. The Code is silent regarding outdoor sales in other zoning districts, which means that it is prohibited. Based on recommendations from the Planning Commission, Staff has drafted an ordinance to correct the inconsistency in the Code. (See attachment.) Staff and the Planning Commission recommend that temporary outdoor sales be allowed as a permitted accessory use in a B-1, Neighborhood Business District. Due to the way that accessory uses are structured in the code, this would allow temporary outdoor sales as a permitted accessory use in all commercial zoning districts. Staff and the Planning Commission recommend allowing temporary outdoor sales to occur for up to ten (10) days in any commercial district. The temporary sale could occur up to three (3) times per year and each permit period must be separated by a minimum of thirty (30) days. Applicants would be required to obtain a permit from the City and meet the following conditions: the sales area must be grassed or surfaced to control dust, the sale cannot take up parking space and lighting must be hooded and directed away from the public right of way and neighboring residences. In addition, the draft ordinance limits the hours of operation to 7:00 AM to 10:00 PM. This revision would provide consistency throughout the code and would allow short-term sales to be conducted without the conditional use process. Recommendation: Review the draft ordinance and direct Staff to make changes as necessary. Respectfully submitted, Kristin Prososki Planning Associate Attachments: Planning Commission Resolution Draft Ordinance MOUNDS VIEW PLANNING COMMISSION RESOLUTION NO. 751-04 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION RECOMMENDING APPROVAL OF A CITY CODE AMENDMENT TO SECTION 1112.03, SECTION 1114.04, SUBD. 5 AND SECTION 1115.04, SUBD. 2 REGARDING TEMPORARY OUTDOOR SALES. WHEREAS, a conflict exists in the Zoning Code regarding requirements for temporary outdoor sales whereby Section 504 of the Mounds View Municipal Code requires only an administrative permit for temporary sales, but Sections 1114 and 1115 require a conditional use permit; and, WHEREAS, consistency in the Code is crucial to proper code enforcement; and, WHEREAS, the Planning Commission has reviewed the following documents regarding this proposal: a. Section 1112.03, 1114.04 and 1115.04 of the City Code b. Proposed Ordinance c. Staff Report WHEREAS, the Mounds View Planning Commission finds that the proposed amendment satisfies the spirit and intent of Chapters 1100 of the Zoning Code; and, WHEREAS, the Mounds View Planning Commission finds that the proposed amendment is not in conflict with the Mounds View Comprehensive Plan. NOW, THEREFORE, BE IT RESOLVED that the Mounds View Planning Commission recommends approval of an amendment to Sections 1112.03, 1114.04 and 1115.04 of the City Code as depicted in the attached proposed Ordinance. BE IT FINALLY RESOLVED that the Mounds View Planning Commission directs staff to forward this resolution to the City Council prior to approval of the minutes. Adopted this 4th day of February, 2004. __________________________________________ Gary Stevenson, Chairperson ATTEST: __________________________________________ James Ericson, Community Development Director (SEAL) ORDINANCE NO. ___ CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA AN ORDINANCE AMENDING SECTION 1112.03, SECTION 1114.04, SUBD. 5 AND SECTION 1115.04, SUBD. 2 OF THE MOUNDS VIEW CITY CODE PERTAINING TO OUTDOOR SALES. THE CITY OF MOUNDS VIEW ORDAINS: SECTION 1: Section 1112.03 of the Mounds View Zoning Code is hereby amended by inserting the following underlined text, to read as follows: 1112.03: ACCESSORY USES: The following are permitted accessory uses in a B-1 District: Subd. 5. Temporary outdoor services, sales and rental as an accessory use and including sales in or from motorized vehicles, trailers or wagons, subject to the following: a. The activity shall not continue for a period greater than 10 consecutive days or for more than three (3), ten (10) day periods per year. Permit periods must be separated by a minimum of thirty (30) days. b. A Temporary Outdoor Sales Permit consistent with the provisions of Chapter 504 shall be obtained prior to commencing the activity. c. The sales area shall be grassed or surfaced to control dust. d. Adequate parking to accommodate the activity must be provided. e. Hours of operation shall not begin before seven o’clock (7:00) A.M. and must end by ten o’clock (10:00) P.M. f. All lighting shall be hooded and so directed that the light source shall not be visible from the public right of way or from neighboring residences and shall be in compliance with sections 1103.08 and 1103.09 of this Title. SECTION 2: Section 1114.04 of the Mounds View Zoning Code is hereby amended by inserting the following underlined text, to read as follows: 1114.04 CONDITIONAL USES: The following are conditional uses in a B-3 District: Subd. 5. Open or outdoor services, sales and rental as a principal or accessory use and including sales in or from motorized vehicles, trailers or wagons for a period greater than 10 days; SECTION 3: Section 1115.04 of the Mounds View Zoning Code is hereby amended by inserting the following underlined text, to read as follows: 1115.04 CONDITIONAL USES: The following are conditional uses in a B-4 District: Subd. 5. Open or outdoor service, sale and rental as an accessory use and including sales in or from motorized vehicles, trailers or wagons for a period greater than 10 days; SECTION 4: This Ordinance becomes effective thirty (30) days after its publication in the official City newspaper. Read by the City Council of the City of Mounds View on this ___day of ___, 2004. Read and passed by the City Council of the City of Mounds View this ___ day of ____, 2004. Jerry Linke, Mayor ATTEST: ________________________________ Kurt Ulrich, Clerk / Administrator (SEAL) APPROVED AS TO FORM: _________________________ City Attorney Item No. 5 Meeting Date: April 5, 2004 Type of Business: Work Session City Administrator Review: ______ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Charles Hansen, Finance Director James Ericson, Community Development Director Item Title/Subject: Long Range Financial Plan – Tax Increment Financing Districts The City of Mounds View has operated several Tax Increment Financing (TIF) Districts since the 1980s. These have provided the City with a source of revenues to accomplish redevelopment projects. Numerous important projects have been completed. Bonds were sold on several occasions to finance large projects with subsequent TIF collections paying the principal and interest on the bonds. Most recent of these were the bonds of 1994B, 1996A, 1996B, and 2001A. Bonds of 1994 made their final payments on February 1, 2003. Bonds of 1996A and 1996B will make their final payments on February 1, 2005. Money for the principal and interest payments are transferred from the TIF Districts to the debt service funds on December 31st prior to the payment. Bonds of 2001A were sold to support the addition of the hotel to the Mermaid. Ninety percent (90%) of the incremental tax collections on the Mermaid are immediately transferred to the trustee for the bonds. Final payment of principal and interest on these bonds will occur on February 1, 2013. Status of Tax Increment Financing Districts: There are three active TIF Districts in the City of Mounds View.  District No. 1 (Mounds View Business Park) was established in 1986, has had two modifications that added parcels to the district, and is required to terminate on December 31, 2014.  District No. 2 (Highway 10 Corridor) was established in 1988, and is required to terminate on December 31, 2015.  District No. 3 (Sysco Area) was also established in 1988, but is required to terminate a year earlier than District 2, by December 31, 2014. Tax Rate Compression: All TIF districts throughout the State of Minnesota have been adversely affected by three major and numerous minor property tax changes since the 1980s. These have reduced property tax rates for all property classes. However, the rates on business properties have been reduced more than the rates on residential property. Hence the difference between the rates has been compressed. Each successive property tax change has reduced the taxes paid into TIF districts. This has caused TIF district deficits as districts struggled to pay obligations incurred based upon earlier projections made when TIF revenues were higher. The City of Mounds View also moved in 2000 to create the Community Fund. This was based upon actions of other cities, which had been upheld by the Office of the State Auditor, to capture interest earned prior to 1996 on the investment of TIF funds and allocate those earnings to a non-TIF fund. This transferred $2,276,116 from the TIF funds to the Community Fund. Tax rate compression, plus the transfer to create the Community Fund, created a deficit in the TIF District #1 Fund. This was compensated for by an internal loan from the Community Fund back to TIF District #1. The loan reached a maximum value of $1,819,910 as of December 31, 2002. It shrank to $816,730 as of December 31, 2003 and may be completely repaid in 2004. Excess Increment: Tax increment law requires that any increment not used to pay obligations or budgeted expenditures must be returned to the county for redistribution to the taxing authorities. Currently, obligations of the TIF districts include:  Transfer to the EDA to pay its operating expenses and redevelopment activities.  Final transfers in 2004 to the debt service funds.  Payments to several developers under pay-as-you-go agreements that in some cases continue to the year 2013.  Payments on the bonds of 2001A continuing through 2013. We are currently reviewing the situation with Ehlers & Associates, the City’s financial advisor for TIF issues. The City may be required to make a payment of excess TIF to Ramsey County as early as this spring. Strategy: All of these districts were established under laws that are less restrictive than for districts that are established under current TIF laws. This gives the City flexibility it wouldn’t otherwise have. Once these districts are finished, the use of TIF within the City of Mounds View will become much more restricted. Currently the EDA activities are primarily funded through transfers from the TIF districts. These transfers will not be available after 2015. Although that seems to be a long way off, planning for alternative funding sources in the future will need to be addressed. Options: The City of Mounds View has many options going forward with TIF. These can be broadly summarized as the following three: 1. Undertake major new projects. This could be done several ways: a. Make expenditures on a major project with the sale of bonds as the financing vehicle. Principal and interest would need to be repaid by the close of the districts in 2014 and 2015. There would be risk from additional property tax changes by the State. b. Make expenditures on a major project with internal loans as the financing vehicle. Principal and interest would need to be repaid by the close of the districts in 2014 and 2015. There would be risk from additional property tax changes by the State. c. Reach a new pay-as-you-go agreement with a developer. The developer would shoulder the risk from additional property tax changes by the State. 2. Fund annual EDA operations and handle within the EDA new redevelopment projects as they arose. Annual transfers from the TIF districts would support the EDA. In most years the transfer would be less than the TIF increment and the excess TIF would have to be refunded to Ramsey County. The City would wait for projects that have the greatest advantages for the City. 3. Selectively decertify certain parcels from the TIF districts. This would reduce TIF revenue while adding value back to the tax base for the city, county, and school district; thereby reducing overall tax rates. The reductions would be calculated to retain TIF revenue in above known obligations so that some new projects could be undertaken. However, any major project would require the creation of a new TIF district under the current, more restrictive TIF laws. Specific Opportunities: 1. County Highway 10 corridor redevelopment. Todd Halunan from URS will present the plans to the City Council on May 3rd. Their cost estimate was $6,500,000 in 2002 for the complete plan implementation. Taking out all of the intersection realignments would reduce the cost to about $3,500,000. 2. Commercial Property Acquisitions. To promote redevelopment and further the goals of the County Highway 10 plan, the City could acquire commercial properties either through willing sellers or by eminent domain. These parcels range in value but would all be considered “high” value, such as Moundsview Square (2003 market value of $3,700,000), the Simon Properties north of Amoco (2003 market value of $750,000), or the former Gas-N-Splash site (2003 market value of $552,000). Other opportunities could be considered. 3. Residential Property Acquisitions. The City has mothballed the Housing Replacement Program (HRP) in response to the Office of the State Auditor’s ruling on past acquisitions not being consistent with the TIF plan. A revision of the TIF plan will be undertaken to identify residential and commercial land for the acquisition. A renewed HRP program benefits the community by removing blighted homes and replacing them with new, larger, higher value housing. The HRP could either purchase a blighted home, demolish it, and sell the lot; or could pay for the demolition of a home if the owner wanted to rebuild. An annual appropriation of $300,000 would probably support two acquisitions or one acquisition and multiple demolitions. Conclusion: The satisfaction of major past obligations requires the City to adopt a new TIF strategy. This can either be one of several active roles for the existing TIF districts undertaking new projects, or a lesser role for existing TIF districts with major projects reserved for new TIF districts. Respectfully Submitted, Charles Hansen James Ericson Taxes/TIF/TIF District Projections.xls TIF #1 8/8/2018 8:57 AM Tax Begin Main Debt Mermaid EDA Develop Admin &Ending Coll.Cash TIF Mermaid Misc.Total Service Debt (1)Operating P.A.G.Interest Total Cash Year Balance Increment Increment Revenue Revenue Transfer Transfer Transfer Payments Expense Expenses Balance 2002 -1,698,681 1,069,750 14,512 1,084,262 ########36,875 77,519 1,205,491 -1,819,910 2003 -1,819,910 1,223,450 104,914 8,128 1,336,492 109,118 96,722 53,859 73,613 333,312 -816,730 2004 -816,730 1,358,735 139,000 12,764 1,510,499 109,848 127,400 210,167 47,014 50,000 544,429 149,340 2005 149,340 1,370,000 141,000 22,764 1,533,764 129,200 214,000 48,000 5,000 396,200 1,286,904 2006 1,286,904 1,385,000 144,000 1,529,000 131,900 218,000 49,000 5,000 403,900 2,412,004 2007 2,412,004 1,400,000 147,000 1,547,000 134,600 222,000 50,000 5,000 411,600 3,547,404 2008 3,547,404 1,415,000 150,000 1,565,000 137,300 226,000 51,000 5,000 419,300 4,693,104 2009 4,693,104 1,430,000 153,000 1,583,000 140,000 230,000 52,000 5,000 427,000 5,849,104 2010 5,849,104 1,445,000 156,000 1,601,000 142,700 234,000 53,000 5,000 434,700 7,015,404 (1)Equals 90% of Mermaid increment plus $2,300 trustee fee. City of Mounds View TIF District #1 Taxes/TIF/TIF District Projections.xls TIF #2 8/8/2018 8:57 AM Tax Begin Main Debt EDA Develop Admin &Ending Coll.Cash TIF Misc.Total Service Operating P.A.G.Interest Total Cash Year Balance Increment Revenue Revenue Transfer Transfer Payments Expense Expenses Balance 2002 153,515 171,642 11,142 182,784 181,024 29,817 601 211,442 124,857 2003 124,857 229,688 2,087 231,775 181,496 38,032 1,162 220,690 135,942 2004 135,942 276,276 3,125 279,401 189,684 40,000 1,250 230,934 184,409 2005 184,409 280,000 22,764 302,764 41,000 1,250 42,250 444,923 2006 444,923 285,000 285,000 42,000 1,250 43,250 686,673 2007 686,673 290,000 290,000 43,000 1,250 44,250 932,423 2008 932,423 295,000 295,000 44,000 1,250 45,250 1,182,173 2009 1,182,173 300,000 300,000 45,000 1,250 46,250 1,435,923 2010 1,435,923 305,000 305,000 46,000 1,250 47,250 1,693,673 City of Mounds View TIF District #2 Taxes/TIF/TIF District Projections.xls TIF #3 8/8/2018 8:57 AM Tax Begin Main Debt EDA Develop Admin &Ending Coll.Cash TIF Misc.Total Service Operating P.A.G.Interest Total Cash Year Balance Increment Revenue Revenue Transfer Transfer Payments Expense Expenses Balance 2002 105,198 338,925 6,396 345,321 217,706 72,949 465 291,120 159,399 2003 159,399 384,272 2,783 387,055 218,274 70,673 301 289,248 257,206 2004 257,206 468,797 7,500 476,297 228,123 210,167 71,150 500 509,940 223,563 2005 223,563 475,000 10,000 485,000 214,000 63,000 1,000 278,000 430,563 2006 430,563 485,000 10,000 495,000 218,000 28,000 1,000 247,000 678,563 2007 678,563 495,000 10,000 505,000 222,000 1,000 223,000 960,563 2008 960,563 505,000 10,000 515,000 226,000 1,000 227,000 1,248,563 2009 1,248,563 515,000 10,000 525,000 230,000 1,000 231,000 1,542,563 2010 1,542,563 525,000 10,000 535,000 234,000 1,000 235,000 1,842,563 City of Mounds View TIF District #3 Item No: 6 Meeting Date: April 5, 2004 Type of Business: Worksession Administrator Review: _______ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Desaree Crane, Administrative Assistant to Administration Item Title/Subject: Process for Council Commission Appointments Staff was directed by Council to review the process for Commission Appointments. Below are each Commission and the process of appointing these members in accordance to the City Code: Planning and Zoning Commission According to Title 400, §401.02 of the City Code, the Planning and Zoning Commission shall consist of seven (7) members from the resident population of Mounds View, other than personnel elected to a public body, to be appointed by the Mayor with approval of the City Council, from applications submitted. The appointees shall have three (3) year staggered terms; at least two (2) of these terms, but not more than three (3) terms, shall expire each year on December 31. Based up on the recommendation of the Planning and Zoning Commission, the Mayor, with the approval of the City Council, shall appoint a chairperson. (Ord. 626, 2-8-99, Ord. 678, 2-12-01; Ord. 706, 10-28-02). Police Civil Service Commission According to Title 400, § 404.01 and 404.02 of the City Code, the Police Civil Service Commission shall consist of three (3) members, who shall be appointed by the Mayor with the approval of a majority of the Council. When first appointed, one (1) Commissioner shall be appointed for one (1) year, who shall be president of the Commission, one (1) for two (2) years and one (1) for three (3) years. Each Commissioner shall hold their office until a successor is duly appointed and qualified. There shall thereafter be one (1) member of the Commission appointed each year for a term of three (3) years, and each shall, during the last year of their term, be president of the Commission. Parks and Recreation Commission According to Titie400, §405.02 of the City Code, the Parks and Recreation Commission shall consist of seven (7) members appointed by the Mayor with approval of the majority of the Council. The Mayor, with approval of the City Council, shall appoint a chairperson at the first regular meeting of the Council in January. (1988 Code 34.02; Ord. 627, 2-8-99; Ord. 707, 10-28-02) Mounds View Festivities Commission According to Title 400, §406.02 and §406.03 of the City Code, the Mounds View Festivities Commission, is a nine (9) member voting board, appointed by the Mayor with the approval of the City Council. The purpose of the Mounds View Festivities Commission is to promote an annual community-wide special event. Members of the Commission shall serve three (3) year staggered terms, with terms expiring September 30 of each year. All appointments are to be made each year at the first regular meeting of the Council in October. Both original and successive appointees shall hold their offices until their successors are appointed and qualified. This section of the Code still exists, although there is no members in this Commission. Staff was not able to find any documentation on deactivation of this commission. Would Council like this Commission to be taken out of the Code? Council would have to pass an Ordinance to delete this Chapter. Economic Development Commission According to Title 400, Chapter 408 the Economic Development Commission shall serve as an advisory commission to the Economic Development Authority, hereinafter the “Authority”, on matters relating to fostering a positive economic climate, encouraging economic development and enhancing the tax base of the City. The Commission shall be composed of seven (7) equal voting members, including three (3) business representatives and four (4) residents, appointed by the Authority President with the approval of the Authority Board of Commissioners. Charter Commission The purpose of the Charter Commission is to study and recommend changes to the City Charter. The 15 members are appointed by the District Judge to four- year overlapping terms with a maximum of two terms. Approximately half of the appointments expire every two years. Discussion Except for the Charter Commission and EDC, the City advertises for the opening of a position on a Commission. When the application is received, it is date stamped and filed. When the all applications are received, copies of all applications are given to the Mayor for his review. The Mayor then picks from the candidates and the Mayor’s recommendations are presented to Council and a Resolution is passed appointing the member or members to that Commission. These applications are kept for one year and then destroyed. Please advise Staff of any changes that Council would like made in Title 400 sections of the Code, in addition to the activation or deactivation of the Mounds View Festivities Commission. Respectfully Submitted, ________________________________ Desaree Crane, Administrative Assistant The Bridges Golf Course SYSCODriving Range 35W Hwy 10 COUNTY ROAD J 12345 6 7 98Map Created on April 1, 2004 C:\Documents and Settings\JimE\Favorites\Comm Dev Stuff\bridges map 8x11.docUndevelopedArea Bridges Golf Course, Market Values, 2003, 2004 Area Acres 2003 2004 % Increase Driving Range 11.77 $644,700 $1,311,100 103% Parking Lot 2.75 $201,000 $201,000 No change Sysco Outlot A 45.86 $1,213,500 $1,997,500 65% MnDOT Deeded Land 52.41 $2,165,200 $5,136,700 137% Northstar Outlot A 5.29 $57,700 $230,600 300% Laport Meadows Parcels 5.53 $0 $520,600 n/a Total: 123.61 $4,288,110 $9,403,511 119% Source: Ramsey County Assessor’s data Item No: 8 Meeting Date: April 5, 2004 Type of Business: Worksession Administrator Review: _____ City of Mounds View Staff Report To: Honorable Mayor and Mounds View City Council From: James Ericson, Community Development Director Item Title/Subject: Review and Discuss Proposed Amendments to Chapter 513 of the Mounds View Municipal Code Pertaining to Adult Uses Introduction: As the Council will recall, the City Attorney was directed to review Mounds View’s adult use ordinance after staff identified a discrepancy in the Code relating to adult use setbacks. The Council adopted Ordinance 730 on January 26, 2004 to allow time to accomplish this review. Kennedy & Graven’s review is complete and is attached for the Council’s consideration. Discussion: Kennedy & Graven has reviewed Chapter 513 of the City Code and recommend adoption of an ordinance to implement the changes identified below: 1. Add additional findings related to the effects of adult businesses; 2. Add a "Purpose" section to bolster the argument that the ordinance is content-neutral, not content-based; 3. Eliminate the reference to excluding minors in the definition section (the business will be an adult business if it otherwise meets the definition and minors are prohibited in a different section of the ordinance); 4. Specify the districts in which adult establishments are permitted; 5. Strike Public Facilities (PF) zoning district, add “parks” to restriction on locations list; 6. Eliminate the requirement that dancers provide the city with name, home address, telephone number, etc. (this came up in a lawsuit they defended and it may cause problems); 7. Limit the request for information from directors and officers of corporate applicants (rather than persons holding more than 5% of the stock of the company -- courts have questioned and struck down similar provisions); 8. License fee – The City should follow up on its costs related to processing Adult use applications and consider raising the fee if justified; and 9. Other relatively minor changes. Staff has reviewed Kennedy & Graven’s suggested changes and feel comfortable with the proposed revisions. Recommendation: Please review the attached Chapter 513 with additions underlined and deletions stricken. An ordinance could be prepared for first reading on April 12, 3004 if the Council so desires. _____________________________________ James Ericson Community Development Director City of Mounds View Attachments: 1. Ordinance 730 2. Chapter 513 INTERIM ORDINANCE NO. 730 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA AN INTERIM ORDINANCE ESTABLISHING A MORATORIUM TO STUDY THE IMPACT OF THE ELIMINATION OF THE PUBLIC FACILITIES ZONING DISTRICT ON THE SITING OF NEW ADULT USE BUSINESSES WHEREAS, on October 13, 2003, the City Council adopted Ordinance No. 720 which eliminated the designation of a Public Facilities Zoning District within the City of Mounds View; and WHEREAS, Section 513.03 of the Mounds View City Code provides that no adult establishment may be located within 500 feet of a public facilities zoning district; and WHEREAS, the City desires to study the impact of the elimination of the public facilities zoning district on the opportunity for adult establishments to locate within the City of Mounds View; and WHEREAS, the City Council has authority, pursuant to Section 3.06 of the City of Mounds View City Charter and Minnesota Statutes Section 462.355, subdivision 4, to adopt an emergency interim ordinance to study whether new or amended controls are necessary to fulfill the City’s legal obligation to adequately protect the public health, safety and welfare; and WHEREAS, the City Council is concerned that in light of the elimination of the public facilities zoning district, Section 513.03 of the Mounds View City Code may need to be amended to accomplish the purpose for which it was intended; and WHEREAS, there is a need for a study to be conducted so that the City can determine whether such amended controls are necessary. NOW, THEREFORE BE IT RESOLVED: THE CITY OF MOUNDS VIEW ORDAINS: Section 1. The City of Mounds View Municipal Code Appendix D is hereby amended to include reference to the following emergency interim Ordinance No. 730. Subdivision 1. Purpose. a. To protect the planning process under the authority of Minnesota Statutes, Section 462.355, subdivision 4, and to protect the public health, safety and welfare of the citizens of the City of Mounds View, the City Council of the City of Mounds View hereby adopts an interim ordinance which prohibits the siting of any new adult establishments as defined in Chapter 513 of the Mounds View City Code within the City of Mounds View. b. The purpose of this Ordinance is to temporarily protect the planning process and to allow the City to study the effect of the elimination of the public facilities zoning district on the available area for adult establishments to locate in the City. Subdivision 2. Applicability of Ordinance. This interim Ordinance shall be in effect for three (3) months after its adoption. SECTION 2. This emergency ordinance is effective upon adoption in accordance with Section 3.06 of the City of Mounds View City Charter. Passed by the City Council of the City of Mounds View, Minnesota this 26th day of January, 2004. ______________________________ Jerry Linke, Mayor ATTEST: ______________________________ Kurt Ulrich, City Clerk-Administrator (SEAL) APPROVED AS TO FORM: _______________________________ Scott Riggs, City Attorney CHAPTER 513 ADULT ESTABLISHMENTS Section: 513.01: Findings and Purpose 513.02: Definitions 513.03: Location 513.04: Hours of Operation 513.05: Additional Conditions for Adult Cabarets 513.06: License Required 513.01 Subd. 1. FINDINGS AND PURPOSE: Studies conducted by the Minnesota attorney general, the American Planning Association and cities such as St. Paul; Indianapolis; Alexandria, Minnesota; Rochester, Minnesota; Phoenix, Arizona; Los Angeles, California; Seattle, Washington; St. Croix County, Wisconsin; have studied the impacts that adult establishments have in those communities. These studies have concluded that adult establishments have adverse impact on the surrounding neighborhoods. Those impacts include increased crime rates, lower property values, increased transiency, neighborhood blight and potential health risks. Based on these studies and findings, the city council concludes: a. Adult establishments have adverse secondary impacts of the types set forth above. b. The adverse impacts caused by adult establishments tend to diminish if adult establislunents are governed by locational requirements, licensing requirements and health requirements. c. It is not the intent of the city council to prohibit adult establishments from having a reasonable opportunity to locate in the city. d. Minnesota Statutes, Section 462.357, allows the city to adopt regulations to promote the public health, safety, morals and general welfare. e. The public health, safety, morals and general welfare will be promoted by the city adopting regulations governing adult establishments. f. Adult establishments can contribute to an increase in criminal activity in the area in which such businesses are located, taxing city crime-prevention programs and law enforcement services. g. Adult establishments can be used as fronts for prostitution and other criminal activity. The experience of other cities indicates that the proper management and operation of such businesses can, however, minimize this risk, provided the owners and operators of such facilities are regulated by licensing or other procedures. h. Adult establishments can increase the risk of exposure to communicable diseases including but not limited to Acquired Immune Deficiency Syndrome (AIDS) for which currently there is no cure. Experiences of other cities indicate that such businesses can facilitate the spread of communicable diseases by virtue of the design and use of the premises, thereby endangering not only the patrons of such establishments but also the general public. i. Adult establishments can cause or contribute to public health problems by the presence of live adult entertainment in conjunction with food and/or drink on the same premises. j. The risk of criminal activity and/or public health problems can be minimized through a licensing and regulatory scheme as prescribed herein. Subd. 2. PURPOSE: It is the purpose of this Ordinance to regulate Adult Establishments to promote the health, safety, morals, and general welfare of the citizens of the City and to establish reasonable and uniform regulations to: a. Prevent additional criminal activity within the City; b. Prevent deterioration of neighborhoods and its consequent adverse effect on real estate values of properties within the neighborhood; c. Locate adult establishments away from residential areas, schools, churches, libraries, parks and playgrounds; and d. Prevent concentration of Adult Establishments within certain areas of the City. Subd. 3. CONTENT-NEUTRAL REGULATION: The provisions of this Ordinance have neither the purpose nor effect of imposing a limitation or restriction on the content of any communicative materials, including adult oriented materials. Similarly, it is neither the intent nor effect of this Ordinance to restrict or deny access by adults to adult-oriented materials protected by the First Amendment or to deny access by distributors and exhibitors of adult-oriented entertainment to their intended market. 513.02 DEFINITIONS: Subd. 1. The following terms have the meanings given them below. Subd. 2. Adult Establishment. A business engaged in any of the following activities or which utilizes any of the following business procedures or practices: a. A business that is conducted exclusively for the patronage of adults and as to which minors are specifically excluded from patronage, either by operation of law or by the owners of such business, except any business licensed under Chapters 501, 502, 503, and 514 of the Mounds View City Code; b. a. Any business that has (1) at least 30% of its inventory, stock and trade or publicly displayed merchandise, or (2) at least 30% of the floor area of the business (not including storerooms, stock areas, bathrooms, basements or any portion of the business not open to the public) devoted to items, merchandise or other materials distinguished or characterized by an emphasis on material depicting, exposing, describing, discussing or relating to specified sexual activities or specified anatomical areas; or c. b. Any adult use as defined in subdivision 3 of this section. Subd. 3. Adult Use. An adult use is any of the activities and businesses described below: a. Adult Body Painting Studio: An establishment or business that which provides the service of applying paint or other substance, whether transparent or non-transparent, to the body of a patron when such person is nude. b. Adult Bookstore: An establishment or business used for the barter, rental or sale of items consisting of printed matter, pictures, slides, records, audio tape, videotape, or motion picture film if such business is not open to the public generally but only to one or more classes of the public, excluding any minor by reason of age, or if (1) at least 30% of the inventory, stock and trade or publicly displayed merchandise or (2) at least 30% of the floor area of the business (not including storerooms, stock areas, bathrooms, basements or any portion of the business not open to the public) is devoted to items, merchandise or other material distinguished or characterized by an emphasis on the depiction or description of "specified sexual activities" or " specified anatomical areas." c. Adult Cabaret: A business or establishment that provides dancing or other live entertainment to patrons if the dancing and live entertainment is distinguished or characterized by an emphasis on the presentation, display, depiction of matter that seeks to evoke, arouse or excite the patrons' sexual or erotic feelings or desire. d. Adult Companionship Establishment: A business or establishment that excludes minors by reason of age, and which provides the service of engaging in or listening to conversation, talk or discussion between an employee of the establishment and a customer, if such service is distinguished or characterized by an emphasis on "specified sexual activities" or "specified anatomical areas." e. Adult Conversation/Rap Parlor: A business or establishment that excludes minors by reason of age, and which provides the services of engaging in or listening to conversation, talk, or discussion, if such service is distinguished or characterized by an emphasis on "specified sexual activities" or "specified anatomical areas." f. Adult Health/Sport Club: A health/sport club that which excludes minors by reason of age, if such club is distinguished or characterized by an emphasis on "specified sexual activities" or "specified anatomical areas." g. Adult Hotel or Motel: A hotel or motel from which minors are specifically excluded from patronage and where that presents material is presented which is distinguished or characterized by an emphasis on matter depicting, describing or relating to "specified sexual activities" or "specified anatomical areas." h. Adult Massage Parlor, Health Club: A massage parlor or health club which restricts minors by reason of age, and which that provides the services of massage, if such service is distinguished or characterized by an emphasis on "specified sexual activities" or "specified anatomical areas." i. Adult Mini-Motion Picture Theater: A business or establishment with a capacity for less than 50 persons used for presenting material if such material is distinguished or characterized by an emphasis on matter depicting, describing or relating to "specified sexual activities" or "specified anatomical areas." j. Adult Modeling Studio: A business or establishment that provides customers figure models who are so provided with the intent of providing sexual stimulation or sexual gratification to such customers and who engage in "specified sexual activities" or display "specified anatomical areas" while being observed, painted, painted upon, sketched, drawn, sculptured, photographed, or otherwise depicted by such customers. k. Adult Motion Picture Arcade: Any place to which the public is permitted or invited where coin or slug-operated or electronically, electrically or mechanically controlled or operated still or motion picture machines, projectors or other image-producing devices are maintained to show images to five or fewer persons per machine at any one time, and where the images so displayed are distinguished or characterized by an emphasis on depicting or describing "specified sexual activities" or "specified anatomical areas." 1. Adult Motion Picture Theater: A motion picture theater with a capacity of 50 or more persons used for presenting material if such theater that as a prevailing practice excludes minors by reason of age or if such presents material is distinguished or characterized by an emphasis on "specified sexual activities" or "specified anatomical areas" for observation by patrons. m. Adult Novelty Business: A business which that has (1) at least 30% of its inventory, stock and trade or publicly displayed merchandise, or (2) at least 30% of the floor area of the business (not including, storerooms, stock areas, bathrooms, basement or any portion of the business not open to the public) devoted to items, merchandise or other material or devices which stimulate human genitals or devices which are designed for sexual stimulation. n. Adult Sauna: A sauna that which excludes minors by reason of age, and which provides a steam bath or heat bathing room used for the purpose of bathing, relaxation, or reducing, utilizing steam or hot air as a cleaning, relaxing or reducing agent, if the service provided by the sauna is distinguished or characterized by an emphasis on "specified sexual activities" or "specified anatomical areas." o. Adult Steam Room/Bathhouse Facility: A building or portion of a building used for providing a steam bath or heat bathing room used for the purpose of pleasure, bathing, relaxation, or reducing, utilizing steam or hot air as a cleaning, relaxing or reducing agent if such building or portion of a building restricts minors by reason of age and if the service provided by the steam room/bathhouse facility is distinguished or characterized by an emphasis on "specified sexual activities" or "specified anatomical areas." Subd. 4. Nude or Specified Anatomical Areas: a. Less than completely and opaquely covered human genitals, pubic region, buttock, anus, or female breast(s) below a point immediately above the top of the areola; and b. Human male genitals in a discernibly turgid state, even if completely and opaquely covered. Subd. 5. Specified Sexual Activities. a. Actual or simulated sexual intercourse, oral copulation, anal intercourse, oral-anal copulation, bestiality, direct physical stimulation of unclothed genitals, flagellation or torture in the context of a sexual relationship, or the use of excretory functions in the context of a sexual relationship, and any of the following sexually-oriented acts or conduct: anilingus, buggery, coprophagy, coprophilia, cunnilingus, fellatio, necrophilia, pederasty, pedophilia, piquerism, sapphism, zooerastia; or b. Clearly depicted human genitals in the state of sexual stimulation, arousal or tumescence; or c. Use of human or animal ejaculation, sodomy, oral copulation, coitus, or masturbation; or d. Fondling or touching of nude human genitals, pubic region, buttocks, or female breast(s); or e. Situations involving a person or persons, any of whom are nude, clad in undergarments or in sexually revealing costumes, and who are engaged in activities involving the flagellation, torture, fettering, binding or other physical restraint of any such persons; or f. Erotic or lewd touching, fondling or other sexually oriented contact with an animal by a human being; or g. Human excretion, urination, menstruation, vaginal or anal irrigation. 513.03 LOCATION: Subd. 1. Permitted Use. Adult establishments are permitted uses in the B-2 Limited Business District, the B-3 Highway Business District, the B-4 Regional Business District, the I-1 Industrial District, and the Planned Unit Development District. Subd. 2. Restrictions on Location. No adult establishment may be located within 500 feet of a residential zoning district, public facilities zoning district, a school, a church, a library, a park, or a commercial day care center or within 500 feet of another adult establishment. Distances shall be measured from the nearest point of the building where the adult establishment is located to the nearest boundary of the residential zoning district or of the property containing a park, school, church, library, commercial day care center or other adult establishment. 513.04 HOURS OF OPERATION: No adult establishment may be open to the public between the hours of 1:00 a.m. and 10:00 a.m. 513.05 ADDITIONAL CONDITIONS FOR ADULT CABARETS: The following additional conditions apply to adult cabarets: a. No owner, operator or manager of an adult cabaret shall permit or allow any dancer or other live entertainer to perform nude. b. No dancer, live entertainer, performer, patron or any other person shall be nude in an adult cabaret. c. The owner, operator or manager of an adult cabaret shall provide the following information to the city concerning any persons who dance or perform live entertainment at the adult cabaret: The person's name, home address, home telephone number, date of birth and any aliases. d. c. No dancer, live entertainer or performer shall be under 18 years old. e. d. All dancing or live entertainment shall occur on a platform intended for that purpose and which is raised at least two feet from the level of the floor. f. e. No dancer or performer shall perform any dance or live entertainment closer than six (6) 10 feet to any patron. g. f. No dancer or performer shall fondle or caress any patron and no patron shall fondle or caress any dancer or performer. h. g. No patron shall pay or give any gratuity to any dancer or performer. i. h. No dancer or performer shall solicit any pay or gratuity from any patron. 513.06 LICENSE REQUIRED. Subd. 1. No person shall own or operate an adult establishment without having first secured a license as provided for in this subsection. Subd. 2. Application: The application for an adult establishment license shall be submitted on a form provided by the City and shall include: a. If the applicant is an individual, the name, residence, phone number, and birthdate of the applicant. If the applicant is a partnership, the name, residence, phone number, and birthdate of each general and limited partner. If the applicant is a corporation, the names, residences, phone numbers, and birthdates of all officers and directors those persons holding more than five (5) percent of the issued and outstanding stock of the corporation. b. The name, address, phone number, and birthdate of the operator and manager of such operation, if different from the owners. c. The address and legal description of the premises where the adult establishment is to be located. d. A statement detailing any gross misdemeanor or felony convictions relating to sex offenses, obscenity or the operation of an adult establishment or adult business by the applicant, operator or manager and whether or not the applicant, operator or manager has ever applied for or held a license to operate a similar type of business in other communities. In the case of a corporation, a statement detailing any felony convictions by the owners of more than five (5) percent of the issued and outstanding stock of the officers and directors of the corporation, and whether or not those owners officers or directors have ever applied for or held a license to operate a similar type of business in other communities. e. The activities and types of business to be conducted. f. The hours of operation. g. The provisions made to restrict access by minors. h. A building plan of the premises detailing all internal operations and activities. Subd. 3. License Fee: a. The annual license fee is $500.00 (this should be looked at. What is the cost to do background investigations and process applications? Higher license fees have been upheld by the courts). b. Each application for a license shall be submitted to the Clerk-Administrator and payment made to the City. Each application for a license shall be accompanied by payment in full of the required license fee. Upon rejection of any application for a license, the City shall refund the license fee. c. All licenses shall expire on the last day of June in each year. Each license shall be issued for a period of one (1) year, except that if a portion of the license year has elapsed when the application is made, a license may be issued for the remainder of the year for a pro rated fee. In computing such fee, any unexpired fraction of a month shall be counted as one (1) month. d. No part of the fee paid by any license shall be refunded, except that a pro rata portion of the fee shall be refunded in the following instances upon application to the Clerk- Administrator within 30 days from the happening of the event, provided that such event occurs more than 30 days before the expiration of the license: (1) Destruction or damage of the licensed premises by fire or other catastrophe. (2) The licensee's illness. (3) The licensee's death. (4) A change in the legal status making it unlawful for the licensed business to continue. e. Each application shall contain a provision on the application in bold print indicating that any withholding of information or the providing of false or misleading information will be grounds for denial or revocation of a license. Any changes in the information provided on the application or provided during the investigation shall be brought to the attention of the City Council by the application or licensee. If said changes take place during the investigation, said data shall be provided to the Police Chief in writing and they shall report the changes to the City Council. Failure to report said changes by the applicant(s) or the licensee may result in a denial or revocation of a license. Subd. 4. Investigative Fee: The investigative fee for an adult establishment license shall be determined as follows: a. Upon applying for the license, the applicant shall pay $500.00 per person identified on the application as an owner, operator or manager. b. If it appears that the investigative costs will exceed $500.00, the Clerk-Administrator shall notify the applicant and give the applicant an estimate of costs. The applicant shall either make an additional deposit equal to the difference between $500.00 and the total estimate, or shall withdraw the application. If the additional deposit is not paid within 14 days, the application shall be deemed withdrawn. c. If the costs of administration, issuance and investigation are less than the deposit, the balance shall be refunded upon the issuance or denial of the license. No license shall be issued until the applicant has paid the entire cost of administration, issuance and investigation Subd. 5. Granting of License: a. The Police Chief or such other designated person shall complete the investigation within 30 days after the Clerk-Administrator receives a complete application and all license and investigative fees. b. If the application is for a renewal, the applicant shall be allowed to continue business until the Council has determined to renew or refuse to renew a license. c. If, after such investigation, it appears that the applicant and the place proposed for the business are eligible for a license under the criteria set forth in this subsection, then the license shall be issued by the City Council within 30 days after the investigation is completed. Otherwise the license shall be denied. d. Each license shall be issued to the applicant only and shall not be transferable to another holder. Each license shall be issued only for the premises described in the application. No license may be transferred to another premise without the approval of the City Council. If the licensee is a partnership or a corporation, a change in the identity of any of the principals of the partnership or corporation shall be deemed a transfer of the license. All adult establishments existing at the time of the adoption of this subsection shall be required to obtain an annual license. Subd. 6. Persons Ineligible for License: No license shall be granted to or held by any person: a. Under twenty-one (21) years of age. b. Who is overdue or whose spouse is overdue in payments to the City, county or state of taxes, fees, fines or penalties assessed against them or imposed upon them; c. Who has been convicted or whose spouse has been convicted of a gross misdemeanor or felony, if such conviction or of violating any law of this state or local ordinance relates ing to sex offenses, obscenity offenses or adult establishments; d. Who is not the proprietor of the establishment for which the license is to be issued; e. Who has been denied a license by the City or any other Minnesota municipal corporation to operate an adult establishment, or such license has been suspended or revoked within the preceding twelve (12) months; e. Who is residing with a person who has been denied a license by the City or any other Minnesota municipal corporation to operate an adult establishment, or residing, with a person whose license to operate an adult establishment has been suspended or revoked within the preceding twelve (12) months; f. Who has not paid the license and investigative fees required by this subsection. Subd. 7. Places Ineligible for License: No license shall be granted to: a. No license shalld be granted for adult establishments on for any premises where the applicant or any of its officers, agents or employees has been convicted of a violation of this subsection, or where any license hereunder has been revoked for cause, until one (1) year has elapsed after such conviction or revocation. a. b. No license shall be granted for a Any adult establishment which is not in full compliance with the City Code, the City's zoning ordinance, the Building Code, the Fire Code, the City's Health Regulations and all provisions of state and federal law. b. Any establishment that holds an intoxicating liquor, beer or wine license. Subd. 8. Conditions of License: a. Every license shall be granted subject to the following conditions and all other provisions of this subsection, and of any applicable sections of the City Code, the City's zoning ordinance, the Building Code, the Fire Code, the City's Health Regulations and all provisions of state and federal law. b. All licensed premises shall have the license posted in a conspicuous place at all times. c. No minor shall be permitted on the licensed premises. d. Any designated inspection officer of the City shall have the right to enter, inspect, and search the premises of a licensee during business hours. e. Every licensee shall be responsible for the conduct of licensee's place of business and shall maintain conditions of order. f. No adult goods or material services shall be offered, sold, transferred, conveyed, given, displayed, or bartered to any minor. g. No merchandise or pictures of the products or entertainment sold or conducted on the premises may be displayed in the window areas or in any area where they can be viewed from a sidewalk in front of the building. h. The window areas may not be covered or made opaque in any way. No sign may be placed in any window. A one square foot sign may be placed on the door of the business to state the hours of operation and that admittance is to adults only. Subd. 9. Penalty: a. Any person violating any provision of this section Chapter is guilty of a misdemeanor and upon conviction shall be punished not more than the maximum penalty for a misdemeanor as prescribed by state law. b. Any violation of this section Chapter shall be a basis for the suspension or revocation of any license granted hereunder. In the event that the City Council proposes to revoke or suspend the license, the licensee shall be notified in writing of the basis for such proposed revocation or suspension. The Council shall hold a hearing for the purpose of determining whether to revoke or suspend the license, which hearing shall be within thirty (30) days of the date of the notice. c. The City Council shall determine whether to suspend or revoke a license within thirty (30) days after the close of the hearing or within sixty (60) days of the date of the notice, whichever is sooner, and shall notify the licensee of its decision within that period. The licensee may continue to operate until the City Council makes its final decision whether to suspend or revoke the license. Subd. 10. Right of Appeal: a. In the event that the Council determines to suspend, or revoke a license, such suspension or revocation shall not be effective until fifteen (15) days after notification of the decision to the licensee. If, within that fifteen (15) days, the licensee files and serves an action in state or federal court challenging the Council's action, then the suspension or revocation shall be stayed until the conclusion of such action. b. If the City Council determines not to renew a license, the licensee may continue its business for fifteen (15) days after receiving notice of such non-renewal. If the licensee files and serves an action in state or federal court within that fifteen (15) days for the purpose of determining whether the City acted properly, the licensee may continue in business until the conclusion of the action. c. If the City Council decides not to grant a license to an applicant, then the applicant may commence an action in state or federal court within fifteen (15) days for the purpose of determining whether the City acted properly. The applicant shall not commence doing business unless the action is concluded in its favor. (Ord. 574, 5-13-96)