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HomeMy WebLinkAbout2019-10-23 EDA Special Meeting Packet CITY OF CENTERVILLE ECONOMIC DEVELOPMENT AUTHORITY SPECIAL MEETING AGENDA Wednesday, October 23, 2019 4:30 p.m. or shortly thereafter I. CALL TO ORDER II.ROLL CALL III. APPROVAL OF AGENDA 1. Call for Changes to the Agenda IV. APPROVAL OF MINUTES 1. None V. BILLS AND COMMUNICATIONS 1.Bills a. None VI. REPORTS 1. None VII. OLD BUSINESS 1. None VIII. NEW BUSINESS 1. IX. ADJOURNMENT *INFORMATIONAL MATERIALS** *REMINDERS** Community Center November 12 Economic Development Authority, Wednesday, CITY OF CENTERVILLE REQUEST FOR ACTION Agenda Item # Department: RequestedMeetingDate: 10/23/2019 (Special Meeting) Administration VIII.1 TITLE OF ISSUE: Building Facade Grant Application - Southern Rail BACKGROUND AND SUPPLEMENTAL INFORMATION: See attached informational letter. COST AND SOURCE(S) OF FUNDING: $5,000 - Housing and Redevelopment Authority Fund (County administered fund) REQUESTED ACTION: Motion to approve a Building Facade Grant award of $5,000 to the Southern Rail for the reconstruction of a garage, pending architectural review and approval by the EDA's executive director. SUPPORTED DOCUMENTS ATTACHED Motion By: ____________________________________ Resolution Ordinance Contract Minutes Plan Map Second By: ____________________________________ Vote Record: AyeNay ____ LMC info on legal non-confomities; staff Other (specify) ____________ _____ info letter; application _______________________________________________________________ _____ _____ _______________________________________________________________ _____ Refer to: _________________________________ Tabled Until: ______________________________ Consent Other: ___________________________________ Regular October 18, 2019 Honorable President and EDA Commissioners 1880 Main Street Centerville, MN 55038 Dear Honorable President and EDA Commissioners: The city has received a Building Facade Grant Application from the Southern Rail for the reconstruction of a garage on the footprint of the existing garage. The applicant was considering tuckpointing and reroofing the existing garage, but thought, with the help of the grant program, a full reconstruction may be more appealing. The Building Façade Grant portion of the Revolving Loan and Grant (RLG) program lists the following eligible expenses for grant dollars: Eligible grant expenditures include repairing, replacing and installing of siding brickwork mansards cornices entrances exterior doors and windows decorative details awnings exterior lighting signage building identification Staff recommends approval of the grant if a bid can show at least $5,000 worth of materials and labor associated with the items listed above. It appears from the scope of work listed on the application, that this will be possible (decorative block, doors, windows, lighting, etc.). The applicant would also need to demonstrate $15,000 worth of qualified expenses to account for the required matching funds. The list of qualifying expenses which can be used for matching funds includes: Generally, all interior fixed improvements including the repair and/or construction of walls, ceilings, floors, lighting, windows, doors and entrances. If the EDA agrees with staff, that the scope of work seems appropriately aligned with the eligible expenses, the next step would be goals outlined by the RLG program. The program lists the following goals: The Centerville RLGP is operated with the following program goals: Provide affordable financing to small businesses for program eligible real estate improvements. Target downtown businesses along Centerville Road and Main Street with other businesses located in the City also being eligible. Serve as a catalyst to leverage private resources. Require that improvements be consistent with city code. For businesses within the M- 1 & M-2 zoning districts, this includes the design guidelines referenced in city code. Require businesses receiving funds to be compliant with existing city code or to come into compliance in the course of the improvements proposed. This includes code related to signage, parking, screening and other exterior regulations. Whether the interior of the building needs to come into compliance with the building code shall be governed by the building code and related city code. Structures which qualify as legal nonconformities may remain. Certainly, the application is well aligned with the first 3 bullet points. The fourth point, reviewed once a sketch is received. The final goal, listed above, requires some additional background. Since the garage is to be constructed to the same size and on the same footprint, it would be allowed under the rights of a legal nonconfomity (see attached info from the League of MN Cities). This means the city may not require it to meet setbacks, parking or other code compliance issues (outside of the building code) as long as those issues are legal non-conformities. In other words, the non-conformity existed before an ordinance prohibited it. With all of this in mind, what is allowed by law and what the intent is, of our RLG program, may be two different th Require businesses receiving funds to be compliant with existing city code or to come into compliance in the course of the improvements proposed. This includes code related to signage, parking, screening and other exterior regulations.Ñ On its face value, this clause may presume that the Southern Rail would need to come into compliance with the parking ordinance, by paving its parking lot and providing enough spaces for the building in order to qualify for the grant. It would also presume that the exterior of the principal structure (the bar itself) would need to come into compliance with city code, which references the design guidelines of the downtown master plan. In simple terms, this means the current vinyl siding would not be allowed, and would need to be replaced with masonry products and the like. and could be cost prohibitive to many existing businesses. The program language immediately following the clause mentioned above, does state that: Structures which qualify as legal nonconformities may remain. Staff believes that this language should be interpreted to mean that not only the structure, but the condition of the structure should be allowed to remain. Additionally, it seems as though the intent would be that other legal non-conforming conditions would be allowed to remain as part of this clause. For instance, if there were an old sign, that did not comply with current sign ordinances, it could remain, provided it predated the sign In this case, we would look at the parking lot in that same manner. It should be clear that if a sign or parking lot or other nonconformity was put in after the adoption of an ordinance, it would not be allowed to remain, since it would be an and should not disqualify a grant application, to be remedied in order to qualify for the Revolving Loan and Grant Program. Staff is certainly open to discussion on this complicated issue and will be on hand at the special meeting to consider this grant application. Sincerely, Mark R. Statz, PE City Administrator/City Engineer LMC Guidance on Legal Non-conformities Cc: Bruce DeJong INFORMATIONMEMO Land Use Nonconformities Learn what the city can and cannot do about land uses, structures or lots that do not comply with the city’s current zoning ordinance. Read about statutory restrictions and the city’s role in administering nonconforming uses. I. Nonconformities RELEVANT LINKS: Nonconformities are simply any land uses, structures or lots that do not comply with the current zoning ordinance of a city. A. Legal nonconformities Legal nonconformities are those that were legal when the zoning ordinance or amendment was adopted, in that they complied with then existing ordinance and law. Legal nonconformities generally have a statutory right to continue. The rights of legal nonconformities are often referred to as grandfather rights. B. Illegal nonconformities Illegal nonconformities are those that were not permitted when established. In contrast to legal nonconformities, illegal nonconformities do not have the rights associated with legal nonconformities. Illegal nonconformities may exist because a prior zoning ordinance was not enforced as written. Failure by the city to enforce a prior zoning ordinance does not give a landowner the legal right to continue an illegal nonconformity. Before assuming a particular nonconformity is entitled to the statutory right to continue, it is important to consider whether the nonconformity ever complied with existing ordinance or law. C. Floodplain nonconformities Minn. Stat. § 462.357 subd. Legal nonconformities in floodplain areas have more limited rights. Cities 1e(c). may regulate the repair, replacement, maintenance, improvement or See MNDNR web page, expansion of nonconforming uses and structures in floodplain areas to the National Flood Insurance extent necessary to maintain community eligibility for the National Flood Program. Insurance Program (NFIP). This material is provided as general information and is not a substitute for legal advice. Consult your attorney for advice concerning specific situations. 145 University Ave. West www.lmc.org 9/5/2018 Saint Paul, MN 55103-2044 (651) 281-1200 or (800) 925-1122 © 2018 All Rights Reserved RELEVANT LINKS: II. Statutory rights of legal nonconformities Minn. Stat. § 462.357, subd. In Minnesota, any legal nonconformity generally has a statutory right to 1e. continue. Specifically, legal nonconformities may be continued, including through repair, replacement, restoration, maintenance, or improvement, but not including expansion. These rights were once limited to repair and maintenance, but in 2004 the legislature afforded the rights to replacement, restoration or improvement but not expansion. A. Who benefits from nonconforming rights The rights of legal nonconformities attach to and benefit the land and are not limited to a particular landowner. If the benefited property is sold, the new owner will have the continuance rights. B. Loss of nonconforming rights The right to continue a legal nonconformity can be lost if the use is discontinued or destroyed. 1. Discontinuance Minn. Stat. § 462.357 subd. There is an exception to continuance rights when a nonconforming use is 1e(a)(1). discontinued for more than one year. 2. Destruction Minn. Stat. § 462.357 subd. There is an exception to continuance rights when a nonconforming structure 1e(a)(2). is destroyed by more than 50% of its assessed market value, and no building permit is applied for within 180 days. This exception is known as the 50% rule and used to have greater impact before the 2004 legislature provided that applying for a building permit within 180 days of destruction defeats the exception. 3. Phasing out Minn. Stat. § 462.357 subd. Historically, the theory behind legal nonconformities was that the property 1c. would eventually comply with the zoning ordinance. The statutory right to continue was more limited, and cities could phase out nonconformities over time through a process called amortization. Current law prohibits amortization, except for adult uses. League of Minnesota Cities Information Memo: 9/5/2018 Land Use Nonconformities Page 2 RELEVANT LINKS: III.City role in administering nonconformities The rights of legal nonconformities to continue does not depend on local ordinance, and so a city often has little role administering nonconformities. A landowner may assert their continuance rights in response to city enforcement of a zoning ordinance. The burden in on the landowner to establish their property qualifies for nonconforming rights. A. Zoning ordinances Some cities choose to address nonconformities in their zoning ordinance either by merely codifying the statutory rights, or sometimes by setting up systems to register legal nonconformities. If a zoning ordinance covers nonconformities, cities should carefully review the ordinance provisions and make sure they are consistent with the current state statute. B. Expansion of nonconforming uses The statutory right of legal nonconformities to continue specifically provides that the right does not include expansion of the use. Because the state statute does not define expansion, some cities choose to define expansion in the city zoning ordinance. The definition could refer to any physical expansion of the nonconforming use, or even intensifying the use. C. Violation of other city ordinances Minn. Stat. § 462.357 subd. Despite their right to continue without complying with the current zoning 1d. ordinance, it is important to keep in mind that all legal nonconformities must generally comply with all other city ordinances, such as a nuisance ordinance or a licensing ordinance. League of Minnesota Cities Information Memo: 9/5/2018 Land Use Nonconformities Page 3