95-872��.�s�;-�.�� -�Ja�4s
Council File # 95-872
� e.-
Ordinance #
Green Sheet # 31273
ORDINANCE
ITY OF SAINT PAUL, MINNESOTA a�
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Referred
Committee: Date
An ordinance enacted pursuant to Section 17.07.1 of the Charter
of the City of Saint Paul and Section 409.20 of the Saint Paul
Legislative Code by creating an additional commercial development
district at 249 West 7th Street between Walnut and Chestnut
Streets.
THE COUNCIL OF THE CITY OF SAINT PAUL DOES ORDAIN:
Section 1
The West 7th Street Commercial District, as shown in Exhibit 1-1995,
which is attached to and incorporated by reference in this ordinance, is
hereby created as a commercial development district under Section 17.07.1
of the Charter of the City of Saint Paul and under Section 409.20 of the
Saint Paul Legislative Code.
Section 2
This ordinance shall be in force and take effect thirty days
following its passage, approval, and publication.
esiaifcu�n
SEP - 91g95
Requested by Department of:
Planninq & Economic Develonment
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Approved by
By
� Form App�oved by City Attorne,y
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B .yv'��.fw,°� � �°,.?lJ.s`
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Appro�ed by Mayor for Submission to
Counc�l
Sy:
Adoption Certified by Council Secretary
95'-�'Ia' ��
DEPARTMENT/OfFICE/COUNCIL DATE �NITIATED � �
PED PLANNING 07/17/95 GREEN SI-��E -
CONTACT PEHSON & PHONE INI IA 7 TE INITIAUDATE
DEPAfiTMENTDIRE � �CINCOUNCIL
K � Dadlez 266-6582 p���N �CITYATfORNEY CRYCLERK �
NUYeENFON
MUST BE O COUNCIL AGENDA BY (�ATE) pOUTIXG � BUDGEf DIRECTOR PIN. & MGT. SERVICES DIR..
� � �] � �5 ONUEN � MAYOR (OFi ASSISTANn �C(Ln
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TOTAL # OF SIGNATURE PAGES � (CLIP ALL �OCATIONS FOR SIGNATURE)
ACTION RE�UESTED:
Consideration by the City Council of the request by The Penguin Corporation that 249 West 7th Street be
designated a"commercial development district" and so to be made eligible to apply for an into�cating liquor
license.
RECOMMENMTIONS. Approve (A) or Reject (R) PERSONAL SERVICE CONTRACTS MUST ANSWER TXE FOLLOWING �UESTIONS:
_ PLANNING CqMMISSION _ CIVIL SEFVICE COMMISSION �� Has this person/firm ever worked under a contract for this tlepartment?
CIB CAMMITfEE YES NO
2. Has this personttirm ever been a city employee?
STAFF
— YES NO
_ DIS7RICT COUR7 _ 3. Does this person/firm possess a skill not normally possessed by any current city empioyee?
SUPPoRTS WHICH COUNCIL OBJECTIVE7 YES NO
Explain all yes answers on separete sheet antl attaeh to green sheet
INI7IATING PROBLEM, ISSUE, OPPORTUNITV (Who, Whet. When, Where, Why):
In accordance with the City Charter and Licensing Code, The Penguin Corporation petitioned the City to be
designated as a"commercial development district." The Planning Commission has revi� quest and
found it to be consistent with the Comprehensive Plan and zoning.
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ADVANTAGES �FAPPROVED.
The new lessee of the bar will be able to apply for an intoxicating liquor license. ���� �
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DISADVANTAGES IFAPPROVED: .
None.
DISADVANTAGES IF NOT APPROVED:
The property will be vacant.
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TOTAL AMOUNT OF TNANSACTION $ COST/REVENUE BUDGETEO (CIRCLE ONE) YES NO
FUNDING SOURCE ACTIVITV NUMBER
FINANCIAL INfORMATION: (E%PLAIN)
ORIGIf�AL
Council File # �� �• �
Ordinance #
Green Sheet
ORDINANCE
CITY OF SAINT PAUL, MINNESOTA ,�`
Presented By
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Referred To
An ordinance to amend Ordinance No.l
by creating an additional commercia
development district at 249 West 7th �
between Walnut and Chestnut Str,�et
THE COUNCIL OF THE CITY OF SAINT PAUL DOES
Section 1
. Date
_.3�� 73
The West 7th Street Commercial District, as sho in E�ibit 1-1995, which is attached to and
incorporated by reference in this ordinance, is hereby reated as a commercial development district under
Section 17.07.1 of the Charter of the City of Saint P ul and under Section 409.20 of the Saint Paul
Legislative Code.
Section 2
This ordinance sha11 be in force and yalce effect thirty days following its passage, approval, and
publication. /
Requested by Department of:
Planni & Economic Develo ment
By� L
Adoption Cer�ified by Council Secretary
By:
Approve by Mayor: Date
By:
Form Appro� by City Attorney
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BY � � r � '" r � ° ' :r '� z; � � �, .�'�'`�
By:
'by Ma�b�fo,r Submission to
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Adopted by Couylcil: Date
1s���-
Sw3NT
PAUL
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CTTY OF SEIINT PAUL
Norm Coleman, Mayor
July 18, 1995
Council President Thune and Members of the City Council
390 City Ha11
15 West Kellogg Boulevard
Saint Paul, Minnesota 55102
RE: COMMERCIAL DEVELOPMENT DISTRICT AT 249 WEST 7TH STREET
Dear Council President Thune and Members of the City Council:
Enclosed is the petition of The Penguin Corporation for a"commercial development
district" at 249 West 7th Street and the Planning Commission's Neighborhood Planning
Committee recommendation on the petition. Since Alary's is losing its lease, its
intoxicating liquor license will terminate. Since transfers of liquor licenses aze not
allowed and the bar is within one-half mile of more than four establishments with
intoxicating liquor licenses, the only way for the applicant to obtain an intoxicating
liquor license is to be designated a commercial development district which is not
subjected to the concentration requirement.
Before the City Council acts on a petition for a commercial development district, the
proposal must be reviewed by the Planning Commission for conformance with the
Comprehensive Plan and zonang. The Planning Commission's Neighborhood Planning
Committee supports the designation as a commercial development district. The
Planning Commission's position will be available July 28, 1995.
I agree with the Neighborhood Planning Committee's conclusions and support the
commercial development disHict. I have consistently supported business development
and regularions which encourage economic opportunity in the City of Saint Paul. If
you have any questions, please call Ken Ford at 266-6577 or Kady Dadlez at 266-6582.
Sincerely,
on,,._ �0�%
Norm Coleman
Mayor
Enclosure
390 Ciry Hall
75 R'es[ Kellogg Boulevard
Samt Paul, MN �5102
Telephone 612-266-8�T0
Facsim�ie: 612-228-8513
cc: Ken Fard
Fred Owusu
�s-���
ATTACHMENTS
i. Ordinance Creating West 7th Street Commercial Development District
with Map
Planning Commission Resolution (draft)
Petition of The Penguin Corporation
Planning Staff Report
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EXHIBIT 1-1995 WEST 7TH STREET COMMERCIAL DEVELOPMENT DISTRICT
The property at 249 West 7th Street, legally described as ex alley Lot 8, Block 52; Rice and
Irvines Addition Blocks 26 tlu�u 41, 46 thru 53.
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city of saint paul
planning commission resolution
file number
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COi�II�ERCIAL DEVELOPMENT DISTRICT: 249 WEST 7TH STREET
WHEREAS, The Penguin Corporation, lessee of a bar on property located at 249
West 7th Street, has petitioned the City to establish a commercial development
district so that an intoxicating liquor license can be issued; and
WHEREAS, a commercial development district for purposes of this review is a
district pursuant to the City Charter, Section 17.07.1, where an intoxicating
liquor license can be granted for a location within one-half mile radius of
which there already are four (4) or more premises licensed for the sale and
consumption of intoxicating liquor on the premises; and
WHEREAS, the Planning Division has determined that The Penguin Corporation's
petition is sufficient (10 parcels eligible to sign, 7 parcels needed, and 7
parcels signed); and
WHEREAS, the Planning Commission reviewed the proposed commercial development
district against the Land Use Plan, the Economic Development Strategy, the
District 9 P1an, the West 7th/Chestnut Small Area Plan and the zoning of the
area; and
WHEREAS, the site has been a bar with a liquor license for many years;
NOW, THEREFORE, BE IT RESOLVED, that the Planning Commission advises the Mayor
and the City Council that the petition of The Penguin Corporation to establish
a commercial development district solely for the property at 249 West 7th
Street is consistent with the Comprehensive Plan and the Zoning Code; and
BE IT FURTHER RESOLVED, tfiat the Planning Commission thinks, as it did at the
time of the Polish-American C1ub designation in 1991 and the Gannon Road
designation in 1993, that the procedure of creating a one-lot commercial
development district to allow an exception to the liquor patrol limits or
concentration levels should be replaced with a more straight-forward
procedure.
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APPLICATION FOR A
COMMERCIAL DEVELOPMENT DISTRICT
Department of Planning and Economic Development
Zoning Section
II00 City Hall Annes
25 West Fourth Street
Saint Paul, MN SSIO2 266-6589
APPLICANT � Name
PROPERTY
LOCATION
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Address I5 ( i3, S�I�� �(�� {'Ltsc�
City �vP,�J ��i�6ti"FGrt St. Mti� Zp SS'I1 z- Daytime phone b3/-/LSI
Name of owner (if different)
Contact person (if different) Lihc�u-Sc hw�� Phone �3i-Ibsl
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Address/Location ��} �I I,c�, 7'h'� S'trr� � St. Pcc.�E ,.vlti�,
Legal description: 12�c.e c�d'1rp�nzs����fi�an, Blvcfvl �i -�f/ a,.d �6-�3,
�xcemfi ull�a- , �ofi b'', Ploe.l� 5'a—
(attach
if necessary)
ADDITIQNAL INFORMATION : Q � ..f_-
(attach additionai sheets if necessary) p��1�- �riF1 I
Csn�r�" occ��uwt;s ��ar�'s
`INCLUDE SITE PLAN WITH APPLICATION
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applicanYs signature Date �'3o k City agent
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CONSENT OF ADJOINING PROPERTY OWNERS
We, the undersigned, owners of the property within 100 feet of a`} �1 �,i; ,�'�'" S �"
and the total contiguous description of real estate owned by the petitioner acknowledge that we
have been fumished with a copy of the application of - j1� �enc��.�,� (crper�ll"vv� for
a Commercial Development District, where a new liquor license may be issued, along with any
relevant site plans, diagrams, or other documentation; and consent to the approval of this
application as it was explained to us by the applicant of his/her representative.
ADDRESS OR P.I.N. # RECORD OWNER SIGNATURE DATE
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COU:iTY OF P=`:SEY )
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�� ��(� �• SGf'J{'}')�, being first culy s::orr., ceposes a::c.
wno circulated tne withi. petit�on �.^.c
states tnat he/she is tnz person af_• nt is in`or�ed �nd believes thzt
consent, consisting o� �}-Ytz_pages; that lz izced
the paities cescribed ate tiie owners respzc�ivzly of tne lots p_
it��ediately before each n�,a, that affiant is in�or�aed a^.d believes tn=� e�c�
of the pa:ties described above is the o;.�er of property Gnichlis �it2�icicOzr
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the propzrt}' dascribed in the petition; that escept for
none oi tne parties described above has purch�szd or is p�rcnaszn� pro:e:t;"
£ro� petitiozer conciguous to tne above describzd p:ooerty �:ithin o�a (1) }"_-�=
of the datz oL" the petition; tnat this consent Fas sioned by e<ch of s�'_c
o�. 7.n ihe prese,ce or tnis zfiiant, and tnat the sign=tures are tne t*u=
znd cozrzct signatures oi e�cn �nd all oi tne pazties so described.
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DATE OFFICIALLY RECEIVED: �p '��'� S DATE RECEIVED:
PARCELS ELIGZBLE• / v PARCELS ELTGIBLE:
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GHBORHOOD COMMITTSE STAFF R$PORT
FILH # 95-144
1. APPLICANT: THE PENGUIN CORPORATION DATB OF H$ARING: To be determined
2. CLASSIFICATION: Commercial Development District
3. LOCATION: 249 7TH STREET WEST (westerly side between Walnut & Chestnut)
4. PLANNING DISTRICT: 9
5. LEGAL DSSCRIPTION: ex alley Lot 8, Block 52; Rice and Irvine's Addition
Blocks 26 thru 41, 46 thru 53
6. PRBSENT ZONING: B-3 CODE REFSRHNCE: §17.07.1 &§409.20
7. STAFF INVSSTIGATION AND RSPORT: DATE: 7/6/95 BY: Kady Dadlez
PIIRPOSPs: To allow the property at 249 West 7th Street to be designated as a
commercial development district and be eligible to apply for an intoxicating
liquor license.
PARCEL SIZE: The property has 60 feet o£ frontage on West 7th Street and is
180 feet in depth for a total lot area o£ 10,800 square feet.
BXISTING LAND USE: The property is occupied by a two-story structure with
commercial use on the first floor and residential use on the second floor.
The commercial space is occupied by Alary's Bar and the Downtowner Cafe.
REOUE5T
The Penguin Corporation, the new lessee o£ Alary's Bar at 249 West 7th Street,
has petitioned the City to establish a commercial development district so that
an intoxicating liquor license can be issued to them, the new operators of the
bar. Alary's Bar is losing its lease and will be closing in August at which
Cime the liquor license will be terminated and a new license is needed.
However, the current license ordinance states that ^No new licenses shall be
issued for any location within one-half mile radius of which there are already
four (4) or more premises licensed for the sale and consumption of
intoxicating liquor on the premises." The ordinance goes on to say that Chis
restriction does not apply if the proposed new location lies within a
designated commercial development district, hence the reason for the
commercial development district at this time.
It should be noted that at the same time the applicant is pursuing this
commercial development district designation, License Inspections, and
Environmental Protection (LIEP) is proposing an amendment to the license
ordinance which would make the need for the commercial development district
unnecessary. The proposed amendment states thaC the restriction on new
licenses for intoxicating liquor would not apply to the £ollowing, "To a nem
Iicense issued for a premises which had an existing and operating on-sale
intoxicating liquor license for at least one year before and up to the time of
issuance of the said new license, provided that this exemption sha21 sunaet on
December 31, 1996, and thereafter sha21 be of no further force and effect."
This provision essentially allows transfers of such licenses for about i7
months.
�jS-���-
File #95-144
Page Two
Before tfie City Council creates a commercial development district, they are
required by the licensing ordinance in the Legislative Code to consult with
the Planning Commission for advice concerning consistency with the
comprehensive plan and zoning.
ADTHORITY FOR RHVISW
The City Charter, Section 17.07.1, provides for commercial development
districts which are excepted from the cap on intoxicating liquor licenses in
each ward. The City Charter designates six commercial development districts
and sets basic procedures for the creation of additional districts. It also
provides that the Council may by ordinance adopt aclditional procedural or
substantive requirements for creating or amending commercial development
districts.
The Saint Paul Legislative Code, Section 409.20(c), provides an additional
reguirement that when the City Council considers creating or expanding a
district, "...the Planning Commission shall be consulted Eor advice concerning
the proposals for consistency with the city's comprehensive plan and zoning
ordinances, and the Planning Commission shall report in writing to the City
Council its findings and recommendations.��
BACKGROUND
1. In April 1991 and November 1993 the Planning Commission acted on similar
petitions for the creation of one-lot commercial development districts at
the Polish American Club and Buca Restaurant. The same procedure used
for these cases is being followed for the current application for the
Penguin Corporation.
2. The Penguin Corporation, the new lessee oE Alary`s Bar is seeking a
liquor license through either of two alternatives: (1) amendment to the
ordinance language which would allow the new license to be issued; or (2)
£o11ow through with the petition for a commercial development district,
where the new lessee will be able to apply £or a liquor license.
3. The bar will continue to operate as Alary's until the new lessee obtains
the intoxicating liquor license.
4. The new lessee wants to resolve the liquor license question as soon as
possible. The Penguin Corporation wants to get into the building to
start making improvements and plans to open by Labor Day, if possible.
The owner of the property would incur major carrying costs if the
property is allowed to become vacant. Therefore, he will continue to
rent to Alary's until the license issue is resolved. The lease payments
for The Penguin Corporation began July 1, 1995; this is why they want to
pursue both alternatives for getting a liquor license simultaneously.
The City Charter provisions that limit the number of liquor licenses per
ward cap Ward 2 at 41 licenses, this does not include those in the
downtown commercial development district for which there are 35. This is
a disproportionately high number of licenses, carrying forward the
historical licensing pattern.
"Commercial development district" as used in this application is a term
used in the City Charter in regard to liquor licenses. The term is not
defined. It is not legally tied to HRA powers, tax increment financing,
q s'�7�'
File #95-144
Page Three
or any other development programs, although a common sense association
was probably intended.
When the Planning Commission recommended approval of commercial
development districts for the Polish American C1ub and the Gannon Site,
the Commission�s resolutions also questioned whether establishing single-
lot commercial development districts was the best way for the city to
make exceptions to the liquor license caps and stated that "commercial
development district" should be defined.
FINDINGS
1. A petition for a commercial development district at 249 West 7th Street
was submitted to the City by The Penguin Corporation on June 30, 1995
pursuant to Legislative Code Section 409.20. The petition was found
sufficient on the same day by the Planning Division staff (10 parcels
eligible, 7 parcels needed, and 7 parcels signedl. The petition is
attached.
2. The proposed commercial development district is one lot, the bar site,
which has an area of approximately 10,800 square feet or 0.25 acres. The
bar portion of the building has 2,235 square feet of area. The owner of
the property owns and operates the Downtowner Cafe in the remainder o£
the first floor of the building. The bar portion of the building has
always been a used as a bar and would need extensive remodeling to be
converted to another use.
3. The proposed commercial development district is consistent with the
adopted citywide Land Use Plan, which calls for supporting neighborhood
and mixed use strip areas to maintain their commercial activities
(Commerce, #2 p.l).
4. The proposed commercial development district is consistent with the
EconomiC Development Strategy adopted in 1990. The Pirst and second
major objectives of the plan deal with retaining and expanding existing
businesses in the city (pages 13 and 14).
5. The proposed commercial development district is consistent with the
District 9 Plan which calls for businesses to concentrate on appealing to
presently poorly tapped secondary markets, such as the Historic xill,
Macalester-Groveland, Highland Park, suburban dwellers, and the downtown
labor force and tourists, #4 p.30. The applicants state that they intend
to cater to the middle-aged professional crowd o£ residents and downtown
workers. Free hors d'oeuvres during happy hour will be provided; they
have a non-compete clause with the owner oE the Downtowner CaEe which
does not allow them to sell food. At the time the District 9 Plan was
written in 1980 no specific references were made about bars or the
particular site.
In addition, the West Seventh/Chestnut Small Area Plan identifies the
emerging concentration of food and entertainment businesses along West
Seventh Street as one of the neighborhood's strengths, p.3. The plan
also calls for retention of the commercial district along West Seventh
Street, p.3.
The proposed commercial development district is consistent with existing
zoning. The property is zoned B-3. A bar is a permitted use. A spine
of commercial zoning exists on West Seventh Street radiating from
downtown.
��"� � 7�-
File #95-144
Page Four
The restaurant has approximately 2,235 square feet of floor area and an
off-street parking requirement of 22 spaces. There are no parking spaces
on the lot although the applicant is talking with the Magic Shop to the
west about sharing the parking lot. Zn addition, Che owner of the bar
property recently purchased a property nearby which may be available for
the applicant's customers.
DISTRICT COIINCIL RECOi�SSNDATION: The West Seventh/FOrt Road Federation
supports the commercial development district designation.
RECOMt�ffiNDATION
Based on the findings above, the staff recommends that the Planning Commission
report to the City Council that the proposed commercial development district
is consistent with the Comprehensive Plan and Zoning Code and that the
Planning Commission supports creation of the proposed district.
In addition, as recommended previously, the staff thinks the Planning
Commission should propose two or three alternative methods for the City
Council to grant exceptions to the caps on number of liquor licenses per ward
or concentrations of licenses within one-half mile. A very simple alternative
would be to change the name of the districts to "restaurant incentive
district", which would more accurately reflect the districts' intent. Another
alternative would be a variance process so the Council could in specific cases
make exceptions to the ward caps or concentration standard. A more radical
alternative would be to do away with the ward caps and concentration standards
and just have the citywide cap on total number of liquor licenses.
Unfortunately, this issue has not been a priority and has not gone beyond a
committee discussion or two since the last commercial development district was
approved in 1993.
cc: Councilmember Dave Thune
Ken Ford, Planning Administrator
Kris Schweinler, License Division
Linda 5chmit, The Penguin Coxporation
Gerald Frisch, Attorney representing The Henguin Corporation
Betty Moran, West Seventh/FOrt Road Federation
9s_F�a-
1. SUNRAY•BATtLECREEK-HIGHWOOD
2. EIAZEL PARK HADEN-PROSPERITY HILLCRE5T
3. WEST SIDE
4. DAYTON'S BLLJFF
5. PAYNE-PHAI�EN
6. I30RTH END
7. THOMAS-DALE
8. SUMMIT-iJNIVERSTTY
WEST SEVENTH��
0. CO O
11. HAMLINE-MIDWAY
12. ST. AN"I'AONY PARK
13. MERRIAM PARK-LEXINGTON HAMLINE-SNEL,LING HAMLINE
14. MACALESTER GROVELAND
15. HIGHIAND
16. SUMMIT HILL
17. DOWNTOWI�i
Z�NtNG FILE s�
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FILE # �� � e� DATE 7' S�1 S � subject property
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DEPARTMENT OF PLANNING
& ECONOMIC DEVELOPMENT
CTTY OF SAII�IT PAUL
Norm Coleman, Mayor
July 11, 1995
Ms. Nancy Anderson
City Council Reseazch Office
Room 310 City Hall
Saint Paul, Minnesota 55102
Deaz Ms. Anderson:
Divrsron of Planning
25 WestFourth Sbeet
Samt Paul, MN SSIO2
gs-� �a-
Telephone� 612-266-6565
Facs+mile 612-2383314
�� �� �
.�ti�{ j i i,1�J
----- =�—
I would like to confirm that a public heazing before the City Council is scheduled for Wednesday
August 16, 1995 for the following Commercial Development District:
Applicant: The Penguin Corporation
File Number: #95-144
Purpose: To allow the property at 249 West 7th Street to be designated as a commercial
development district and be eligibie to apply for an intoxicating liquor license.
Address: 249 West 7th Street (westerly side between Walnut & Chestnut)
Legal Description of Property: ex alley Lot 8, Block 52; Rice and Iroine's Addition Block 26
thru 41, 46 thru 53
Previous Action:
Planning Commission Recommendation: will be available July 28, 1995
Neighborhood Committee Recommendation: will be available July 11, 1995
���b _ and that
Please call me at 266-6582 if you have any questions.
incerely, 4�'K/
�� 2
ady D lez
Zoning Se tion
ca File #95-144
Mike Kraemer
Donna Sanders
NUTICE OF PUBLIC HEARING ,
The Saint Paui City Council witl conduct a public hearing on f�ugusE L6,
1995, at 3:30 p.m. in the City Council Chambers: Phird Floor,
City Ha71. to consider [he applicatfon of The Penguin Corporation to allow the
properry at 249 West 7th Street (westerly side between Walnut & ChestnutZ
to be designaced as a commercial development district and be eligible to apply
for an intoxicating lic�uor license.
Dated: July I1, 1995 �
NANCY ANDERSON
Rssistant City Council Secretary_
CJuiq I3. 1995)