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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 � B � 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 /5 Requested by Departrnento£ � Form Approved by CiTy Attorney � Approved by Mayor for Submission to Council � ` � � . � . r � /- — TS %� �_. __r.-.-_ _ o-�/� � 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) b3-���' _,�f _ �� � :,� ,; 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 /jb c: 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. d3- S�f �' 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. d�.g�� 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. D 3 - �''`T 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 03-�� 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.)