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I : �[�;Sl�3�1i�� 3.1 During the review/consideration of a CONDITIONAL USE PERMIT for the Walser Automotive Group's proposal to redevelop the former McCarthy Pontiac GMC Truck dealership at 2775 Highway 35 (July 12, 2006), it was noted that the applicant was in the process of converting an existing lease with the Minnesota Department of Transportation (MNDOT) to allow parking of vehicles directly south of the subject parcel. At that time the City Planner indicated that staff and the City Attorney would need to review the lease to determine how the City Code is applied — in essence to determine whether a side yard setback for the parking lot be required. 3.2 Since the Commission's hearing and recommendation of support, the Walser CONDITIONAL USE PERMIT has been approved by the City Council (August 14, 2006) and the City Attorney has determined that a VARIANCE is required to allow a five foot parking lot encroachment for the southern parking lot as proposed by the applicant. 4.0 STAFF COMMENT: 4.1 Section 1005.01 (Business District Minimum Dimensional Requirements) requires a minimum side yard parking lot setback of 5 feet. 4.2 The proposal submitted by the applicant seeks to construct a parking lot up to and over the south property line a distance of 7-1/2 feet. This parking lot design will afford Walser extra vehicle display for 41 vehicles. 4.3 The applicant is currently negotiating with the MNDOT the conversion of the McCarthy lease to include an area 20 feet in width and 440 feet in length on which a portion will be paved for vehicle parking. 4.4 The applicant has indicated that, should the lease not be renewed by MNDOT, the owner will remove the necessary amount of paving (or greater) and install the required concrete curb and gutter 4.5 In light of the required setback from the property line, the subject area (actually larger than Walser desires to use) has been used for vehicle purposes for many years. Aerial photography indicates parking up to the south property line in 1974 and parking on the MNDOT property in 1985. Further, many of the dealerships adjacent to the subject property were constructed under different Code requirements affording most the ability to construct parking lots up to property line. 4.6 The variance proposed herein, if granted, will not adversely affect the public health, safety, or general welfare if approved with conditions. These conditions are laid out in Section 6 of this report. PF3785_RVBA_0090606.doc Page 2 of 2