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" Since the meeting, the discussions have centered around two issues: 1) Legal counsel has indicated that a dialogue between Mr. Oren and Mrs. Cedarholm about Mrs. Cedarholm purchasing Mr. Oren's property has been initiated. 2) The issue of whether or not an easement exists across Mr. Oren's property to protect the Cedarholm sewer and water service has been raised. The attached letter from Mitch Converse discusses this issue but cannot establish rights to either party without further information. As we understand it, the neighborhood and their legal representatives will continue to work on this matter over the weekend, and will hopefully have a proposal to present to the City Council Monday evening. Staff Recommendations: Mr. Oren's case is unusual in that his original proposal to add on to an existing but deteriorated structure was permitted under the ordinance. To demolish that structure to improve the property, however, amounts to giving up the "grandfathered" status of the legal non-conforming use and triggers the enforcement of current setback standards, The lot, while substandard in size and width, is a buildable lot and staff recommends approval of a variance to the lot size and width requirements of the Shoreland Management Ordinance. Because it is a buildable lot within the setback standards established for the Shoreland Management Overlay Districts, it is difficult to find a hardship in the strict interpretation of the statutory requirements for hardship. Therefore, although staff regrets that Mr, Oren relied on information provided by the City, it is our opinion that design alternatives exist that would allow the construction of a single family house on this lot without the need for a variance to setback requirements. Council Action Requested: 1. Motion to approve a variance to the lot size and width requirements of the Shoreline Management Ordinance at 367 S, Owasso Boulevard. , 2. Motion to deny the request for a variance to the Shoreline Setback requirement of75 feet at 367 S. Owasso Boulevard. 2. Motion to approve sideyard setback variances of up to 4 feet on the north and up to 2 feet on the south at 367 S. Owasso Boulevard to allow Mr. Oren the flexibility to build his house design at the 75 foot setback line. Staff Report by: Mike Falk 3