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HomeMy WebLinkAbout2B, Variance Update and Possible Zoning Code Amendment Discussion ............................ ..................................... �ENHILLS Request for Council Review 2B Prepared By: Meagan Beekman,City Planner Work Session Date: February 22,2Q11 Variance Update and Possible Zoning Code Amendment Discussion Discussion Tol2ic: 1. Discuss variance review criteria and an update on variance law activity at the State Legislature. 2. Discuss housing goals stated in the City's Comprehensive Plan and how best to achieve those goals. 3. Provide direction to Staff on a number of possible Zoning Code amendments pertaining to housing maintenance. Suunortint!Documents: 1. Memorandum dated February 22,2011, from Meagan Beekman, City Planner. 2. Aerial images of residential properties in the City that are currently nonconforming. EN HILLS MEMORANDUM DATE: February 22, 2011 TO: Honorable Mayor and City Councilmembers Planning Commission FROM: Meagan Beekman, City Planner SUBJECT: Variance Update and Possible Zoning Code Amendment Discussion Requested Action 1. Discuss variance review criteria and an update on variance law activity at the State Legislature. 2. Discuss housing goals stated in the City's Comprehensive Plan and how best to achieve those goals. 3. Provide direction to Staff on a number of possible Zoning Code amendments pertaining to housing maintenance. Background In June of 2010, the Minnesota Supreme Court handed down a decision in the case Krumenacher v. City of Minnetonka. The case was regarding a variance request that the City of Minnetonka granted having to do with enlarging a nonconforming detached-garage in the front yard of a lakeshore lot. The neighbor of the recipient of the variance was not happy with the City's - decision and filed suit. The Court found in favor of the neighbor. The result of the Supreme Court's decision has had an impact on the way cities all over the State of Minnesota review variance requests. Exactly what this impact has been is described in more detail later in the memo. City ofArden Hills City Council and Planning Commission Joint Work session for February 22, 2011 ItMetro-inet.uslardenhillsWdminlCouncilWgendas&PacketInformationl2o11L%22-11 WorksessionlPackeiInformationlo2-22-11 PCandCC Joint Work Session-Variance Discussion.doc Page 1 of 6 The purpose of this discussion is two-fold. The first goal is to discuss the state of variance law in Minnesota today and to understand where it is likely headed in this legislative session. The second goal is a much broader one. The housing stock in Arden Hills, as in all developed communities, continues to age. Chapter 7 of the 2030 Comprehensive Plan states that the goal for the City's housing stock is to, "Develop and maintain a land use pattern that strengthens the vitality, quality, and character of our residential neighhorhoods, commercial districts, and industrial areas while protecting the community's natural resources and developing a sustainable pattern for future development. " The City has several tools available to achieve its housing goals; one of these tools is through the City's Zoning Code, and how we regulate property in order to encourage or discourage reinvestment in the City's housing stock. Staff is seeking discussion and direction on whether certain amendments to the Zoning Code would help forward the City's housing goals. Legislative versus Quasi-Judicial Decisions Making Law State Statute gives cities the authority to regulate how land may be used. Cities have a wide range of discretion in developing a zoning ordinance and comprehensive plan because it is in this capacity that a city is exercising the powers that the State has granted. The adoption or amendment of a zoning ordinance is considered a legislative decision of the city council, which includes the function of making the law for the city. Courts generally give legislative decisions made by a city great deference and weight; however, the court will on occasion set aside or intervene in city zoning decisions if two important constitutional restraints in the federal and state constitution are violated. First, the courts may overrule a city zoning decision when it determines that a zoning ordinance is unsupported by any rational basis related to promoting public health, ,safety, morals, or general welfare. This is known as the "rational basis standard" and it is generally a very friendly standard for cities to meet. In instances where the court overrules a city's decision, the court usually will find that the city's actions were arbitrary and/or capricious. Second, when a zoning ordinance denies the landowner practically all reasonable use of the land, resulting in a "taking" of the land without just compensation; the court may order the city to pay compensation to the affected landowner. Applying Law In contrast, when administering an existing zoning ordinance by way of reviewing a land use or building permit application, the city's discretion is much more limited. Generally, when reviewing a land use application, with the exception of zoning or comprehensive plan amendments, the city is no longer acting in its legislative capacity. When reviewing land use City of Arden Hills City Council and Planning Commission Joint Work Session for February 22, 2011 lWetro-inetlardenhi11sL4dmin7Counci144gendas&Packet Information 12011 12-22-1 1 WorksessionTacket Information W2-22-I1 PC and CC Joint Work Session-Variance Discussion.doc Page 2 of 6 applications, such as a variance, conditional use permit, site plan review, or subdivision request, the city is said to be exercising a quasi-judicial function. Rather than legislating for the broad -_ population as a whole, the city is applying the law that was written when the city was in the _ legislative role. Applying the law is a quasi-judicial or judge-like determination about an individual land use application to determine whether the application meets the standards of the city ordinance. In quasi-judicial circumstances, the city must follow the standards and requirements of the ordinance it has adopted. If an application meets the requirements of the ordinance, generally it must be granted. If an application is denied, the stated reasons for the denial must all relate to the applicant's failure to meet standards established in the ordinance. In sum, the city has a great deal of liberty to establish the rules, but once established,the city is as equally bound by the rules as the public. An application may generally only be denied for failure to meet the standards in State Statutes or city ordinances. The League of Minnesota Cities has provided a handout entitled, "Zoning Decisions" (Attachment A). The last page of that handout illustrates the hierarchy between legislative and quasi-judicial decisions in the form of the Planning and Zoning Discretion Pyramid. Variances As a quasi-judicial action, the role of the planning commission in the granting or denying of variance requests is laid out in Minn. Stat. § 462.3 57, sub. 6: "To hear requests for variances from the literal provisions of the ordinance in instances where their strict enforcement would cause undue hardship because of circumstances unique to the individual property under consideration, and to grant such variances only when it is demonstrated that such actions will be in keeping with the spirit and intent of the ordinance. "Undue hardship" as used in connection with the granting of a variance means the property in question cannot be put to a reasonable use if used under conditions allowed by the official controls, the plight of the landowner is due to circumstances unique to the property not created by the landowner, and the variance, if granted, will not alter the essential character of the locality [emphasis added]. Economic considerations alone shall not constitute an undue hardship if reasonable use for - the property exists under the terms of the ordinance. Undue hardship also includes, but is not limited to, inadequate access to direct sunlight for solar energy systems...The board or governing body as the case may be may impose conditions in the granting of variances to insure compliance and to protect adjacent properties. " City of Arden Hills City Council and Planning Commission Joint Work Session for February 22, 2011 1Wetro-ine4ardenhillsl4dminlCouncil44gendas&Packet lnformationl201112-22-11 WorksessionWacketlnformationl02-22-11 PCandCCJoint Work Session-Variance Discussion.doc Page 3 of 6 As shown in the above paragraph, State Statutes partially define "undue hardship" as meaning that "the property in question cannot be put to a reasonable use if used under the conditions allowed by the official controls." Until recently, lower courts in Minnesota had ruled that this _ undue hardship requirement was virtually insurmountable and had reinterpreted the intent of the Statute to mean that the variance request itself must be a reasonable one. This interpretation of the law was distinctly different from the plain language of the Statute, which requires that the property cannot be put to a reasonable use without the variance. That interpretation significantly changed when the Minnesota Supreme Court recently reviewed Krummenacher v. City of Minnetonka, which dealt specifically with a municipality's interpretation of this particular Statute. The Court found that cities must use the letter of the law when reviewing a variance request for finding an undue hardship. The letter of the law dictates that a city must be able to find that a property cannot be put to a reasonable use without the granting of the variance in order to legally grant a variance request. This decision substantively affects the way cities throughout the State of Minnesota will review variance requests moving forward, and makes the granting of a variance much more difficult. In the wake of the Court's decision, it has become evident that variances are not an effective tool for evaluating many of the requests that cities get for exceptions to their zoning codes. The function of a variance is really to address only those most extreme circumstances where a property owner does not have reasonable use of their property without it. The result of the Court's decision has spurred many communities to reevaluate their zoning regulations to ensure that the type of development that they want to encourage is allowed, rather than requiring residents to get a variance when their request is seemingly reasonable. Prior to this court case, the City of Arden Hills received between 6 and 10 variance requests a year, the vast majority of these were granted. In addition to actual variance requests, Staff receives dozens of calls each year from residents and builders inquiring about improvements they would like to make to their homes; garage expansions, front entryway additions, rear additions, second stories. While some of these calls result in residents coming in for building permits and completing their projects, the majority end with Staff informing the resident that their expansion is not allowed under City Code. In most circumstances, residents are not encouraged to apply for a variance because Staff does not believe that their situation would meet the variance review criteria laid out in State Statute, which would result in a denial of their request. Possible Zoning Code Amendments In light of the recent Minnesota Supreme Court ruling regarding variances, it may be a good time to review the Arden Hills Zoning Code for opportunities to make amendments that will circumvent the need for some variance requests altogether. There are certain types of variance City of Arden Hills City Council and Planning Commission Joint Work Session for February 22, 2011 I iMetro-inet.uslardenhillsiAdminlCouncilWgendas&Packet lnformation12011 Q-22-I1 WorksessionlPacket Information102-22-11 PC and CC Joint Work Session-Variance Discussion.doc Page 4 of 6 ......... .... .. ........ requests that are more common than others are. It is possible for the City to adopt changes to the Zoning Code, similar to the Front Porch Ordinance, which would create circumstances where - certain types of development could occur without the need for a variance. In the past, some communities would use the variance process as a way for cities to take a more hands on approach in the review and approval of projects. Based on the purpose of a variance, as defined in state law and interpreted by the courts, using the process as a tool to review projects on a case-by-case basis as to whether the project is reasonable is no longer an appropriate use of that tool. Variances are designed to be used sparingly and only in those situations where a property cannot be put to a reasonable use if it were forced to be developed in accordance with the existing ordinances of the city. No amount of zoning text amendments will eliminate the need for variances altogether, or change the fact that some people will want to make improvements to their home that are not in keeping with the character of the community and therefore, should not be allowed. On the other hand, allowing people to reasonably improve their homes and maintain value is an important aspect of maintaining a community's housing stock. Staff is seeking direction on whether to proceed with researching and drafting possible zoning code amendments that would allow certain kinds of property reinvestment that are not currently allowed without a variance. In Arden Hills, one of the most common issues that arise when residents call to inquire about home improvements is that their houses are already considered legally nonconforming; they were constructed during a time when setbacks were not as great as they are now, and any expansion of the house is not allowed without a variance. For example, many homes constructed prior to 1970 or so, which include nearly all of the homes in the southwest corner of the City, were constructed with 30-foot front yard setbacks; however, the City Code now requires a 40-foot front yard setback. Similarly, homes constructed with five- foot side yard setbacks in the R-1 District now have a ten-foot minimum setback. Because the City does not allow expansions within existing setbacks of nonconforming houses, these homes cannot be expanded without a variance. Because these are not unique situations in the City, and the lots technically already are being reasonably used, these situations are not candidates for variances. Some cities already have provisions that allow this type of flexibility through an administrative review. For example, Roseville, New Brighton, Minnetonka, and Burnsville all allow additions to nonconforming structures up to their existing setbacks under certain circumstances. Other possible opportunities for Zoning Code changes may involve allowing detached garages in the front yards of lakeshore lots, reduced side yard setback on corner lots, or reduced setbacks for accessory structures in R-2 and R-3 districts. Discussion City of Arden Hills City Council and Planning Commission Joint Work Session for February 22, 2011 IlMetro-inet.uslardenhillsWdminlCouncilUgendas&Packet lnformationl201112-22-11 WorksessionlPacket lnformation102-22-11 PCand CC Joint Work Session-Variance Discussion.doe Page 5 of 6 The following are specific questions designed to further the discussion: 1. What are the City's goals for its housing stock? 2. Does enforcement of the City's existing regulations achieve the City's goals for its housing stock? 3. What can the City do to maintain value in its housing stock? Home loan/fix-up programs, amending regulations, education, etc. 4. What is the balance between allowing people to reasonably improve their property and allowing redevelopment that is not in keeping with the character of existing neighborhoods? Attachments A. 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