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ARDEN HILLS CITY COUNCIL WORK SESSION MAY 13, 20132 Monday through Thursday. There would also be limited use of the leased space during the hours of 8:00 a.m. and 10:00 p.m. Monday through Saturday. Community Development Director Hutmacher reported that according to information provided by Country Financial, Bethel students, guests, faculty and administration will not exceed four per 1,000 square feet leased during normal business hours and no more than eight per 1,000 square feet after normal business hours. It was noted the property currently has approximately 4.29 parking stalls per 1,000 building square feet. No additional parking is proposed. Community Development Director Hutmacher indicated that the City approved a similar zoning amendment request on May 22, 2006, for Rob Davidson for property owned at 1212 Red Fox Road in the B-4 zoning district. In that situation, the Council determined that higher education and special education uses were consistent with the purpose of the B-4 district and a Special Use Permit was approved. Community Development Director Hutmacher commented that she has been working with the Economic Development Commission on an analysis of commercial and industrial property in Arden Hills. Preliminary results have shown that, although the overall level of office vacancy in Arden Hills (17.9%) is comparable to vacancy levels in the northeast Twin Cities submarket (18.8%), the office vacancy rate in the B-2 District is approximately 45%. She noted the vacant space at Country Financial represents more than 60% of the office vacancy in the B-2 District. Community Development Director Hutmacher requested the Council consider whether high education is an appropriate use for office space in the B-2 District and provide staff with guidance on how to proceed with this issue. Councilmember McClung asked if there would be a corresponding decrease in the property tax value with Bethel moving in or if Country Financial would retain ownership of the property. He expressed concern with expanding institutional property in the City of Arden Hills. Community Development Director Hutmacher stated that her understanding is that a tenant in a building does not change the property tax status of the building. However, there may be a process for a tax-exempt user to claim a rebate for their portion of the building. Mayor Pro-Tem Holmes questioned if the City would approve the tax-exempt status. Randy Hagerty, , Country Financialexplained that this approval process was actually approved by the County. Councilmember Holden inquired if a Special Use Permit could limit the hours of operation to evenings. Community Development Director Hutmacher stated that the applicant is requesting a Conditional Use Permit and the City could add conditions on the use. She explained that the property is an office building and parking is available from 8:00 a.m. to 5:00 p.m. for office uses. Discussion ensued regarding onsite parking at the office building.