08-27-07 Item 7D, Property Transfer Request

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Rezoning If the City Council chooses to pursue rezoning the property, the most compatible zoning with the proposed land use may be the B-3: Service Business District. The B-3 Zone permits retail sales, vehicle sales, and vehicle leasing, which seems to fit the proposed land use (Attachment 7D-3). Outdoor storage and heavy manufacturing would not be permitted, which would be undesirable near residential and park areas. Additionally, a conditional use permit, which requires Planning Commission and City Council review, would be required for any new building in the B-3 Zone. While the City would maintain development oversight if the property were rezoned and retained within the City limits, there are downsides to this option. Please consider the following hypothetical situation: The City rezones the property to B-3 and retains it in the City. For whatever reason, the applicant chooses not to develop the property, and he sells just the 8,712 square foot property to someone else. Because the subject property is a legally separate property, the City could not deny all use of the property under the law. However, due to the size and shape of the subject property, it would not be possible to build a structure on the property that meets all B-3 setback requirements and coverage limitations. Since the City cannot legally deny all reasonable use of the property-no matter how small or nonconforming-the City could potentially be required to approve a variance to construct a building on the small subject property. Furthermore, any of the permitted or conditional uses listed for the B-3 Zone could potentially be requested for the subject property. If the City did deny all reasonable use of the property, it would likely be considered a "taking," which is unconstitutional. The B-3 Zone may work for the current situation, but there may be long-term issues. As already noted, the property is nonconforming in its current R-2 Zone. Because of the nonconforming status, the hypothetical situation could also occur under the current R-2 Zone. Due to the size and shape of the property, it is probably not possible to construct a dwelling on the subject property that meets all R-2 requirements. Again, since all reasonable use of the property carmot be denied, the City could potentially be required to approve a variance that allows a dwelling on the subject property if one were proposed. The applicant has not proposed or given any indication that he would develop the subject property independently from the rest of his property. Recommendation While the rezoning option can be pursued further if directed, Staff is concerned about the potential long-term consequences of rezoning the property to a business or industrial zoning designation because the property is so small. Therefore, Staff is recommending against rezoning the property at this time. The property does not appear to have much use in Arden Hills under its current R-2 Zoning designation. Because of the size and shape of the property, it would be difficult to construct a conforming dwelling. Due to the low value ofthe property and low taxes payable, the impact on \ \Metro-inet.uslardenhi/lslPlanningICity Council Memos\2007lProperty transfer to NBl082 707 - CC Report - property transfer to NB.doc Page 4 of5