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City Council - 11/13/2018 - Workshop APPROVED MINUTES CITY COUNCIL WORKSHOP & OPEN PODIUM TUESDAY, NOVEMBER 13, 2018 CITY CENTER 5:00—6:25 PM, HERITAGE ROOMS 6:30—7:00 PM, COUNCIL CHAMBER CITY COUNCIL: Mayor Nancy Tyra-Lukens, Council Members Brad Aho, Kathy Nelson, and Ron Case CITY STAFF: City Manager Rick Getschow, Police Chief Greg Weber, Fire Chief George Esbensen, Public Works Director Robert Ellis, Community Development Director Janet Jeremiah, Parks and Recreation Director Jay Lotthammer, Communications Manager Joyce Lorenz, City Attorney Ric Rosow, and Recorder Katie O'Connor Workshop - Heritage Rooms I and H(5:30) I. ZONING STANDARDS REGARDING SENSITIVE USES City Planner Klima stated additional research has been gathered on zoning standards for sensitive uses following the moratorium put in place in June. Language has been drafted to address pawn shops and sexually oriented businesses. Klima stated when comparing to other cities, all cities require a license similar to Eden Prairie. Communities zoning standards vary between Commercial, Industrial, and a combination of both. About half of the communities have buffer requirements ranging from 200 feet to one mile. Based on research and feedback from Council and the Planning Commission, staff recommends amending City Code Chapter 11 to include definitions for pawn shops and precious metal dealers as currently defined in Chapter 5. Also, allow pawn shops and precious metal dealers as permitted uses within the Regional-Commercial and Commercial-Regional-Services zoning districts consistent with what the Code currently allows, and to impose a 1,000 foot buffer from other pawn shops and precious metal dealers. Council Member Nelson stated if Council doesn't want these uses in the mall, this would have to be changed. Klima added the mall is currently zoned Commercial-Regional. Council Member Aho inquired how many other comparable cities have pawn shops, and how many do they have. Klima stated the other researched cities do have pawn shops,but she is not certain of the amounts. Burnsville has several, and Hopkins has more than several. Community Development Director Jeremiah noted the mall is guided for Mixed Use in Aspire 2040 Comprehensive Plan. Klima stated the Mixed Use Zoning District would need to be established and applied to the mall property. If this change in zoning is approved, the mall would no longer be eligible for pawn shops or precious metal dealers unless they are already present prior to the change. Those businesses would then become non-conforming. City Council Workshop Minutes November 13, 2018 Page 2 Nelson inquired if the City is required to allow at least two zoning districts for these uses to be located. Klima stated the City is required to have an adequate amount of property available to those uses. Commercial-Regional-Services has about 112 parcels, and Commercial-Regional has 10 parcels. Nelson stated she would prefer the allowed area to only include Commercial-Regional-Services. Mayor Tyra-Lukens inquired if once the mall is guided to Mixed Use, the mall could be zoned as Mixed Use in January. Klima responded it could likely be zoned as Mixed Use sometime in 2019. City Attorney Rosow stated pawn shops are categorized with precious metal dealers, and there is currently one precious metal retailer in the mall. Rosow stated the moratorium stays in place until June. Direction could be given during the meeting with suggestions to bring the ordinance back at another meeting to include Council's feedback. Rosow clarified the Council feedback is to remove precious metal dealers from the restrictions Planning Commissioner Farr stated there has occasionally been a precious metal kiosk in the mall, and creating these restrictions would not allow any other jewelers in the mall that are also precious metal dealers. Getschow noted the primary focus has been pawn shops. Nelson clarified she prefers precious metal dealers and the allowed commercial regional zoning district be removed. Aho noted he prefers to have staff bring these changes back to Council in December so they can review any unintended consequences. Klima stated City Code does not have any regulations on sexually oriented businesses. When comparing to other cities, all communities require a license. Most of the cities allow sexually oriented businesses in commercial zones, some allow these uses in industrial zones or both commercial and industrial. All of the communities have distance requirements ranging from 250 feet to 1,000 feet. Staff recommends amending Chapter 5 to address the licensing requirements with definitions, and to amend Chapter 11 to allow them as a permitted use in I- 2 and I-5 Zoning Districts. I-2 and I-5 Zoning Districts allow retail uses as permitted use,but only up to 15 percent of the gross floor area of a building. Additionally, staff recommends a distance requirement of 1,000 feet. Aho inquired if licensing fees are regulated by the state. Rosow responded no. They are subject to the City's fee scheduled adopted by the Council. Tyra-Lukens inquired if the licensing requirements include a background check. Rosow confirmed some licenses are required under state law to conduct a background check. Most cities choose to conduct background checks for massage licenses. Nelson inquired about future Southwest Light Rail Transit(SWLRT) stops near the golden triangle area, and if a sexually oriented business would be allowed to neighbor that area. Klima confirmed it would not neighbor a SWLRT stop. Aho noted businesses cannot be regulated out of the city. Rosow stated the City has to allow legal services,but does not have to allow illegal uses that do not meet the licensing criteria. City Council Workshop Minutes November 13, 2018 Page 3 Tyra-Lukens inquired what the cost of rent is in the I-2 and I-5 Zoning Districts. If these uses were restricted to areas with higher rent costs, maybe they would be less likely to move into the City. Jeremiah responded she is not certain that adequately provides a barrier. Nelson inquired if a development would not be allowed within the 1,000 foot buffer of a sexually oriented business. Klima stated a development would still be allowed. Tyra-Lukens clarified businesses would be grandfathered into that zoning requirement, but if the business closed, a sexually oriented business would no longer be allowed within the buffer. Klima stated the third use discussed in the moratorium is fire arm sales. There is a lack of research both locally and regionally that addresses impacts of fire arm sales on communities. Other cities allow fire arm sales under a general retail category. Other cites also did not impose a distance requirement. Feedback on City Connect had mixed reactions. Staff does not have an ordinance or any recommendations drafted but is seeking suggestions. Nelson stated residents seem comfortable with current fire arm retailers' locations, but many are opposed to these retailers being in or near residential. Aho stated there isn't a reason or research to restrict fire arm sales. Nelson replied there would be limited business near residential. Aho stated it is unlikely a fire arm retailer would locate in or near residential. Tyra-Lukens stated the restrictions would still allow for a generous amount of space. Minneapolis is very restrictive and has no fire arm retailers in the city. Planning Commissioner Farr stated high-end gun ranges are part of the fire arm market. Aho noted this type of business would be well-suited for the golden triangle area. Nelson added her preference would be an industrial location, not neighborhood commercial. Aho stated there is no noise from these businesses outside the building. Tyra-Lukens inquired if there are independent fire arm retailers that operate out of their home. Police Chief Weber stated he does not know if the City can access the federal licenses. Open Podium - Council Chamber (6:30) II. OPEN PODIUM III. ADJOURNMENT