03-847Council File # D.3 " 0 7-
Presented
Referred To
Committee Date
WIIEREAS, the Legislative Hearing Officer recommends that the license application (ID # 20030002649) for
Second Hand Dealer-Motor Vehicle and Auto Repair Garage Licenses by K's Auto Sales and Service, Inc.,
doing business as K's Auto Sales and Service, 1445 Arcade Street, be referred to an Administrative Law Judge;
THEREFORE, BE IT RESOLVED that the Council of the City of Saint Paul hereby refers this license
application to an Administrative Law Judge.
Yeas Na s Absent
Benanav �
Blakey �
Bostrom �
Coleman `
Harris v
Lantry v
Reiter �
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Adopted by Council: Date g/`/- ��j
Adoption Certified by Council Secretary
By: .�i/�/ll/ 1�.�lf'�li
RESOLUTION
CITY OF SAfNT PAUL, M{NNESOTA
Green Sheet # 3005094
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Requested by Departrnento£
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Form Approved by CiTy Attorney
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Approved by Mayor for Submission to Council
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� Green Sheet,Green Sheet
03 -�S'�
Green Sheet Green Sheet Green Sheet Green Sheet �
Departmentloffice/eouneil: Date Initiated:
co -��� 09SEP-03 Green Sheet NO: 3005094
Contac[ Person & Phone• ���eM Sent To Person InitiaUDafe
MarCia Mcertnond � 0 oun ii
266-8560 Assign 1
Must Be on Council Agenda by (Date): Number y
For 3
Routing
Order <
5
ToWI # of Signature Pages _(Clip All Locations for Signature)
Action Requested:
Keferring the license application by Yer Mua, K's Auto Sa1es and Service, 1445 Arcade Street, to an Administrative Law Judge.
Recommendations: Approve (A) or Reject (R): Personal Service Contracts Must Answer the Following Questions:
Planning Commission t. Has this persoNfirm ever worked under a contract for this departmenY?
CIB Committee Yes No
Civil Service Commission 2. Has this personffirm ever been a city employee?
Yes No
- 3. Does this person/firm possess a skill not normally possessed by any
current city empioyee?
Yes No
Explain all yes answers on separate sheet and attach to green sheet
Initiating Probiem, Issues, Opportunity (Who, What, When, Where, Why):
AdvanWStes If Approved:
DisadvaMapes If Approved:
Disadvanqges If Not Approved:
Totai Amount of CostlRevenue Budgeted:
Transaction:
Fundina Saurce: Activitv Num6er;
Financial Infortnation:
(Euplain)
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September 12, 2003
CITY OF SAINT PAUL
OFFICE OF TF� CZTY COUNCIL
Council President Dan Bostrom
Room 320 City Hall
15 West Kellogg Boulevard
Saint Paul, Minnesota 55102
President Bostrom:
Based on testimony provided at the August 21, 2003 Legislative Hearing regarding the licenses
application (ID # 20030002649) for Second Hand Dealer-Motor Vehicle and Second Hand
Garage Licenses by K's Auto Sales and Service, Inc., doing business as K's Auto Sales and
Service,1445 Arcade Street, I recommend that the Saint Paul City Council refer this case to an
Administrative Law Judge.
Sincerely,
�
Marcia Moermond, Legislative Heazing Officer
City of Saint Paul
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City councilmembers
District 5 Planning Council
East Side Neighborhood Development Company
Payne Arcade Business Association
Virginia Palmer, City Attorney's Office
LIEP staff
CITY AALL THI�D FLOOR SAINT PAUL, MINNESOTA 5 5 102-16 1 5
s ae
Prin:ed on [tecyded Papet
03 - 8�
NIINUTES OF THE LEGISLATIVE HEARING
K'S AUTO SALES & REPAIR -1445 ARCADE STREET
3:00 p,m. - Thursday, August 21, 2003
Room 330 Courthouse
Mazcia Moermond, L,egislative Hearing Officer
The hearing was called to order at 3:04 p.m.
STAFF PRESENT: Jeff Hawkins, License, Inspections and Environmental Pzotection (LIEP);
Racquel Naylor and 7ean Birkholz, City Council.
OTHERS PRESENT: Yer Mua, CEQ, 2736 Hamlet Avenue North; Michelle Barrette, Sivertson
and Bazrette, 1465 Arcade Street; Jeff Anderson, Anderson Funeral Home, 1405 Arcade Street;
and Rich Kramer, 965 Arcade Street.
Marcia Moermond stated that the goal of this hearing is to develop a recommendation for the
City Council when it considers these license applications. There are three kinds of
recommendations that she can make to the Council: 1) grant the license without conditions; 2)
grant the license with conditions, which have been agreed to by the applicant; or 3) refer this
matter to an Adzninistrative Law Judge. A denial of a license cannot come through this
procedure. A denial of a license can come only through the Administrative Law Judge process.
At that point, there would be a public hearing.
Ms. Moermond continued to say that when this issue goes before the City Council, it will appear
on the Consent Agenda. The Consent Agenda is a set of items that aze not discussed at the City
Council meeting; and, there is no taking of testimony. Hopefully, matters can be settled at this
level because the Administrative Law Judge process is extremely time consuming and if lawyer's
fees are involved, it becomes expensive as well.
Ms. Moermond apologized that the applicant did not receive the written heazing notice in a
timely fashion; and was happy that he could attend.
Jeff Hawkins, License, Inspections and Environmental Protection (LIEP), provided a staff report.
Ms. Hawkins explained that an appiication has been made for: 1) second-hand dealer for motor
vehicles; and 2) auto repair garage. Staff prepared twelve (12) conditions for the license, some
that reflect the Special Condition Use Permit issued in 1995:
1. The number of "For Sale" cars on the lot shall not exceed eleven (11). There will be nine
(9) off-street parking places provided for the auto repair customers and empioyees of both
licenses. At no tune shall the total number of vehicles on the lot, including those needing
repairs, completed repairs or parked, exceed the number twenty (20). All customer and
employee vehicles must be parked in the azea designated on an approved site plan.
2. Provide maneuvering space on the property to allow vehicles entering and exiting the site
to proceed forward. Backing from the street or onto the street is prohibited.
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LEGISLATIVE HEAI2ING - K'S AUTO SALES & REPAIR, 1445 ARCADE PAGE 2
3. At no time shail vehicles be parked in the driveway or in the public right-of-way.
Velucles "For 5ale" may not be pazked on the street or public right-of-way.
4. Customer vehicles may not be pazked longer than ten (10) days on the premises.
5. All vehicles pazked outdoors must appeaz to be completely assembled with no major body
:
10.
11.
parts missing.
Vehicle salvage is not pemutted.
Auto body repair and auto body spray painting is not allowed.
There shall be no exterior storage of parts or materials associated with the business.
Vehicle parts, ures, oil and similar items will not be stored outside. Trash will be stored
in a covered dumpster.
No lighting that adversely affects adjacent residential property shail be permitted.
The buffer area along the western boundary of the property shall be landscaped with
shrubs, and properly maintained.
12. Licensee must comply with all federal, state and local laws.
At this time, environmental health has no stake in it; fire has approved it; licensing has approved
it, pending this hearing; and zoning has approved it, pending the conditions.
Ms Moermond asked Mr. Mua to relate his plans and conversations he has had with the district
council and the neighbors.
Mr. Mua testified that his plans are still the sanie; they will be doing sales and repair. He had
spoken with Michelle Banette yesterday and concluded that they might be able to work
something out if the number of cars on the lot was lowered. The previous owner seems to have
violated many of the conditions. Mr. Mua doesn't think the conditions aze impossible to meet.
His partner would agree to lower the number of cars on the lot, but doing so would probably
mean they would need to turn away customers.
Ms. Moermond asked Mr. Mua what number of vehicles he would be willing to work at. Mr.
Mua answered that seventeen (17) total, in the lot, would be workable.
Mr. Hawkins explained that when the original special conditional use permit (SCUP) was issued,
they reviewed a site plan and determined that twenty (20) vehicles could be properly spaced on
the lot. Seventeen (17) would make it more open so there would be additional maneuvering
space, and it would not seem so cluttered, City staff would accept that.
Mr. Mua requested that if their application is denied, they receive documentation of the reasons
far denial, which might help them to get some of their investment back.
Ms. Moermond stated that any of the reasons for denial would be written if it were in the
Administrative Law Judge process. At this level, her written recommendation or the minutes of
the meeting would reflect what the reasons were far whatever the recommendation is. Copies
will be sent to Mr. Mua.
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LEGISLATIVE HEARING - K'S AUTO SALES & REPATR, 1445 ARCADE PAGE 3
Ms. Moermond stated that testisnony would now be taken from people with objections to the
application, and hopefully, how they think those concerns could be addressed, if they can be
addressed.
Michelle Barrette noted that she is appearing in a personal capacity, not as an attorney
representing any pariy. Her business is located next door to the 1445 Arcade property, and she
has concems about continuing the business if these licenses for 1445 Arcade are granted. The
premises has had a very poor effect on their business. (At tlus tnne, Ms. Barrette provided staff
with copies of material she wiil be referencing.)
The first exhibit, dated May 24, 1995, from Jo Wilcox, is a letter letting people know about the
conditions that were unposed in 1995. Prior to 1995, there had been a lot of issues concerning
compliance with local and state laws. The neighborhood got involved and were instrumental in
getting the conditions imposed at the planning council stage. The conditions failed to be met
over the entire period of time that she has been next door.
Ms. Banette questions the amount of space on the 1ot in order to conduct two (2) businesses and
also whether or not the site meets current zoning. She doesn't know if nine (9) off=street parking
spaces ever existed. She thinks that it's not possible to have seventeen (17) vehicles on the kot.
In the past, they were to mark cars that were "For Sale." Rarely, were any cars marked "For
Sale." At tnnes it was difficult to disfinguish vehicles "For Sale" from those that were customer-
related and those that were being repaired. Ms. Barrette counted cars on the lot and documented
that count on a list contained in the exhibits beginning in June 1998 to August 1999. There were
anywhere from foriy-two (42) cars there on down. Rarely, were there only twenty (20) cars on
the lot. Because there were too many cars, the overflow would park in their office parking lot.
They would contact the absentee landlord and the tenants to indicate that was their parking lot,
and that they would haue liability if anyone fell, and that they needed a11 of the spaces for their
office. But things never changed. They contSnuously overflowed into the office lot. Even more
problematic was that cazs would park on the city sidewalk because there is only one ingress and
egress into the repair station. This blocked the sidewalk from school children and other
pedestrians going to the school bus corner. It caused people to walk out toward the curb on the
boulevazd, or it forced them into the repair station lot where cars were maneuvering in and out. It
simply continued to be a publac safety issue for children and the elderly until the last tenants
moved out (approximately June, 2003).
Ms. Barrette wrote a letter to the licensing office enumerating her concerns on August 19, 1999,
and asked for a meeting to discuss her concerns. She also spoke with Ms. Wendy Lane about the
issue. She never received any contact from them and determined that she wasn't getting any
enforcement results. Enforcement at this site is not something they can rely on for the future
because it hasn't been adequate in the past.
Ms. Barrette listed other concerns that are problematic for this site:
- In 1995, the huge oil tanks were dug up on the lot, which left the lot with an uneven
03 8��
LEGISLATIVE HEARING - K'S AUTO SALES & REPAIR, 1445 ARCADE PAGE 4
patchwork of surfaces.
- Having the requirement of one (I) ingress/egress doesn't work because it's violated
anyway; however City Code specifies that for this type of license, they need two (2)
ingresses and egresses.
- Cars continually pazk in Sivertson and Barrette's lot because they cannot get into the
1445 Arcade lot.
- Sivertson and Bartette have the unpleasing view of stasked cars, cazs in disrepair, etc.
from the shop at 1445 Arcade.
- Trees were supposed to be planted along the boulevard on Wheelock Parkway but it
wasn't done.
- Several old poles with writing on them were to be painted or removed. Some were only
partially painted; most were not painted at all.
- Curbing barriers was supposed to be provided to stop cars from going onto the sidewalk
on Arcade Street. Either they don't exist or they haue been pushed forward.
- Sidewalks were frequently not shoveled in the winter.
- The entire back part of the premises frequently consisted of junked cars (five (5) to fifteen
(15) leaving less space for cars to maneuver, so most of the cars leaving the premises
would need to back onto Wheelock Parkway, which is absolutely prohibited by the
conditions. Unless the number of cars on the proposed conditions is reduced
significantly, they are going to continue to back out onto the street.
- Vehicle stalls face Arcade Street but ingress and egress is on Wheelock Parkway.
Ms. Barrette thinks that it's very appazent that the conditions previously set were not met. When
their office complained, the problems were not resoived. The biggest problem is that there is an
absentee landlord who doesn't care what the property looks like and doesn't care to continue to
maintain it to meet the requirements. Vazious tenants have come in and out over time proposing
different conditions, but the same conditions that are put into place are not met. So, the
neighborhood has had this problem since before 1995. Until the number of cars is limited on the
lot to ten {10) or twelve (12), the problems will still exist. It is simply overuse of the premises
and it is not going to work into the future without significantly restricting it, probably to the point
where it may not be profitable. The application is for two (2) businesses, and Ms. Barrette
questions whether operating even one (1) of those businesses would even have proper space, let
alone two (2).
Ms. Barrette also has the concern of this being a situation where a different person is coming in
under the name but the same business is being operated. Another concern is that Mr. Mua will
be having other people ruuning the business until it gets up to a point where iYs profitable for
him to quit his fu11-tune job with the Post Office.
With respect to the application, Ms. Barrette asked if a site plan was received along with the
application. Mr. Hawkins replied that an updated site plan was not received, but the office had
one (1) on file. Ms. Barrette feels that it would be imperative to have an uptlated site plan. Her
understanding of the Code is that two (2) copies of a site plan have to be submitted with the
application or it can not be considered.
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LEGISLATIVE HEARING - K'S AUTO SALES & REPAII2, 1445 ARCADE PAGE 5
Ms. Banette's understanding of Section 310.02 is that the application for the license can't be
received by the inspector unless accompanied by bonds and tax certifications. In a phone call she
made to LIEP, they told her that they did not know whether those had been submitted with the
application. Mr. Hawldns noted that it was his understanding that everything had been turned in
along with the Secretary of State's t� I.D. Ms. Barrette stated that Section 401 A1 subdivision C
states that
No license shall be ganted for a Second-Hand Motor Vehicle upon a street which is
located on a bus line or a state truuk tughway.
Obviously, this is on busy Highway #61 and there's a bus stop with a sign "Bus Stop" right in
front of the premises.
Mr. Hawkins said that he would need to review that section of the code because ali of the auto-
related facilities in the B-3 or I-1 zones are along trunk highways. There are probably other
mitigating conditions. Regarding the site plan, it is a policy of License, Inspections, and
Environmental Protection (LIEP) to accept all applications. If they are void of anything, LIEP
sends out letters. They do not refuse any application that's accompanied with a check.
Ms. Barrette concluded by requesting that Ms. Moermond recommend to the City Council that
this matter be refened to an Administrative Law Judge for further hearing. She thinks there are
sufficient concerns, legal requisites and a history of many years of violating the conditions. She
also asked if the neighborhood council's letter was made part of the record. Ms. Moermond
answered that it was. There is a District 5 Planning Council letter dated July 25, 2003, which is a
part of the record. All materials received are made part of the record and will go forward to the
City Council.
Jeff Anderson, co-owner and manager of Anderson Funeral Home, just a block from the property
in question, testified next. He noted that Ms. Barrette had already covered many of his concerns.
He lives a mile north of the property, so he drives by it every day. He thinks that in the last few
years, the properly hasn't been any where close to compliance. There have always been more
cazs there than the site can accommodate. He stated that the funeral home takes a lot of pride in
their building, and most of the businesses on that section of Arcade Street are very well
maintained. The auto repair building is probably the worst looking on Arcade Street. The
residential area around them looks great - better than it has looked in yeazs. He said that he had
no problem with a legitimate business operating in auto repair - auto sales, but he thinks it could
be done in a better and more attractive fashion than it has been.
Richard Kramer, commercial property owner at 965 Arcade Street, testified. He explained that a
large number of conditions are required for this properiy because of the size of the lot, which is
approximately 10,000 square feet. After the Special Conditional Use Permit (SCUP) was
approved in 1995, the zoning code was changed to require a minimum of 15,Q00 square feet for
auto related uses in the city. While a Special Conditional Use Permit (SCUP) would be grand
fathered-in, it is in conflict with the licensing code which says that
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LEGISLATIVE HEARING - K'S AUTO SALES & REPAIK, 1445 ARCADE PAGE 6
No new licenses sha11 be granted without full compliance with the zoning code.
He tlunks that presents a significant issue and needs to be reviewed by an Administrative Law
Judge.
Ms. Moermond asked Mr. Mua if he has plans to address these concerns. Mr. Mua stated that the
landlord has agreed to pave the properry. The landlord is in the process of installing new garage
doors today and he also plans to do something with the windows. Mr. Mua explained that he
really has no control over the building, and that the landlord is not very easy to deal with.
Regarding the nuxnber of cazs on the lot, he feels that twenty (20) is a fair number. Their plan is
to not do any major auto repairs, just repairs that can be done easily and will move in and out
quickly. He explained that both he and his partner own other property to which they could move
"For Sale" cars, if need be.
Ms. Moermond asked if he would take care of the landscaping condition. Mr. Mua replied that
he would have no problem doing it himself.
Mr. Hawkins stated that he would prefer that both the applicant and the property owner
(landlord} sign the conditions.
Ms. Moermond aclrnowledged that Mr. Mua has walked into a very difficult situation. This
property has a long history of violations. It seems that neither the previous licensees nar the
property owner have come into compliance. Ms. Moermond stated that she is concerned about
the same issue as Mr. Kramer:
No new licenses shall be granted without full compliance with the zoning code.
Ms. Moermond said that she will need to study the code. She is inclined to recommend that this
be refened to an Administrative Law Judge for that reason alone. She added that she will write a
letter to the City Council with her recommendation. The letter will be delivered to the City
Councii by September 12, 2003. This matter will probably be scheduled on the City Council
agenda for September 24, 2003. She noted that Mr. Mua, as well as others who are present, will
receive a phone call as well as a copy of the letter indicating the fime and date it will appear on
the City Council agenda.
The hearing was adjourned at 3:55 p.m.
/jab
(Ms. Moermond recommended to the City Council that this matter be referred to an
Administrative Law Judge.)