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2021-03-09 Planning Commission PacketA,,1bf:rtvi11c Small' Uving. etq ary ur.. PLANNING COMMISSION MEETING Tuesday March 9, 2021 7:00 PM 1. CALL TO ORDER - ROLL CALL — ADOPT AGENDA 2. MINUTES January 12, 2021 Planning Commission Meeting Minutes (pages 1-6) 5. PUBLIC HEARINGS a. None 6. OTHER BUSINESS Review and discussion of the Thrift Store Study (pages 7-26) 7. ADJOURNMENT ibSmofl A�l Town Lhring. Big 'L±e,, Life, ALBERTVILLE PLANNING COMMISSION TUESDAY, JANUARY 12, 2021 DRAFT MINUTES ALBERTVILLE CITY HALL 1. CALL TO ORDER - ROLL CALL - ADOPT AGENDA Chair Buhrmann called the meeting to order at 7:00 p.m. Maeghan Becker conducted roll call. 7:00 PM Present: Chair Buhrmann and Commissioners Anderson, Hayden, Huggins, Zagorski and Hudson. Absent: None. Others Present: City Planner Al Brixius, Building Permit Technician Maeghan Becker, Scott Dahlke, Sheila Zachman, Chris Engle, Gary Lenz, Tom Lenz, Dan Lenz, Gary Fehn. Present Via Zoom: Walter Hudson, Any and Christine Konz, Jennifer Kaeding, Rebecca Ford, John Lee (President of Mold Tech) Motioned by Zagorski, seconded by Anderson to approve the agenda. Ayes: Buhrmann, Anderson, Hayden, Huggins, Zagorski and Hudson. Nays: None. Absent: None. MOTION DECLARED CARRIED. 2. MINUTES Motioned by Anderson, seconded by Zagorski to approve the December 8, 2020 Planning Commission meeting minutes. Ayes: Buhrmann, Anderson, Hayden, Huggins, Zagorski and Hudson. Nays: None. Absent: None. MOTION DECLARED CARRIED. 3. PUBLIC HEARINGS A. Public hearing to consider a request from Chris Engle - Focus Design Build: • Conditional Use Permit for shared parking • Site and building plan review • Administrative subdivision Brixius presented the Albertville - Konz Crossing proposed project and all the items that are listed in the planner's report dated January 6, 2021. Chris Engle spoke stating that there was not much metal on the exterior of the building being proposed. Anderson asked about the shared access for the building and wondering who will have shared access. Brixius responded stated that there would be a street that goes around it for future development. He also stated that they want to make sure there is enough room for turning radius. Anderson confirmed that the shared access is for the bank and this future development. Scott Dalhke representing Andy and Christine Konz addressed the Commissioners stating that the drive thru was recommended to them from the City and that the easement is needed for that. They also stated that this building layout is really the only layout that works with what they tenants they are working with. Scott Dahlke addressed the Commissioners about the Konz project. He spoke about the sanitary sewer and water lines that are already existing and that it limits them on what they can do with this proposed building. They are working with all those existing components to try and make this project work. Commissioners asked about what tenant bays the owners will be occupying. Dahlke responded that they will be occupying the east end of the building. Huggins asked about the drive thru and the tenant possibilities. Brixius responded that a drive thru on the end of malls tend to be popular and gave some examples. Brixius did stated that he is not sure how the design would work for this particular location. Anderson asked about the drive thru requirements. Brixius went through what the typical drive thru requirements are and what needs to be met by the applicant. Zagorski commented on the area and that we have no other similar surrounding buildings/tenants. Chris Engle stated that the variance opens the door to many opportunities to future tenants. Christine Konz stated that the size of the building is very crucial to the Planning Commission Meeting Minutes 2 Regular Meeting of January 12, 2021 success of their building and to make sure that they can fund the building. Modifying the building is really not an option. Huggins asked Brixius about the difference between B2 and B2-A zoning. Brixius responded that the B2-A has a much broader range of commercial use that is allowed, and B2 is a limited district. Anderson questioned the drive thru and if city staff would need to review anything further. Brixius stated that there are no approvals tonight for a drive thru, it is for the variance. Motioned by Anderson, seconded by Zagorski to open the Public Hearing. Ayes: Buhrmann, Anderson, Hayden, Huggins, Zagorski and Hudson. Nays: None. Absent. None. MOTION DECLARED CARRIED. No one wished to speak. Motioned by Hayden, seconded by Anderson to close the Public Hearing. Ayes: Buhrmann, Anderson, Hayden Huggins, Zagorski and Hudson. Nays: None. Absent: None. MOTION DECLARED CARRIED. Motioned by Huggins, seconded by Hayden to approve the request from Focus Design Build for the Konz Crossing for the minor subdivision with the conditions stated in the planner's report dated January 6, 2021. Ayes: Buhrmann, Anderson, Hayden, Huggins, Zagorski and Hudson. Nays: None. Absent. None. MOTION DECLARED CARRIED. Motioned by Anderson, seconded by Hayden to approve the request from Focus Design Build for the Konz Crossing for the variance request based on the current site plan in the planner's report dated January 6, 2021. Ayes: Buhrmann, Anderson, Hayden, Huggins, Zagorski and Hudson. Nays: None. Absent. None. MOTION DECLARED CARRIED. Motioned by Huggins, seconded by Zagorski to approve the request from Focus Design Build for the Konz Crossing for the site and building plans as stated in the planner's report dated January 6, 2021 with the change under site and building plans to item #3 that the building elevations are subject to the building plans being revised to demonstrate the hardie board and the actual materials to match the B2-A District Standards. Ayes: Buhrmann, Anderson, Hayden, Huggins, Zagorski and Hudson. Nays: None. Absent: None. MOTION DECLARED CARRIED. Motioned by Anderson, seconded by Hayden to approve the request from Focus Design Build for the Konz Crossing for the conditional use permit for shared parking and easement language with the conditions stated in the planner's report dated January 6, 2021. Ayes: Buhrmann, Anderson, Hayden, Huggins, Zagorski and Hudson. Nays: None. Absent: None. MOTION DECLARED CARRIED. 3 B. Public hearing to consider a request from Hunter Land Company for: • Zoning map amendment changing zoning from A-1 Agricultural/Rural District to I-2 General Industrial District • Preliminary/Final Plat • Site and building plan review • Conditional Use Permit for outdoor storage • Variance from parking lot surfacing Brixius presented the Hunter Land Company/Fehn Companies proposed project to the Commissioners as dated in the January 7, 2021 Planner's Report. Buhrmann commented on what a good business Fehns has been to have in Albertville. Anderson asked if Outlot A was part of the applicant's property. Brixius responded yes. Anderson is wondering about the round -a -bout with large vehicles going through there. Brixius responded that there will be no issues. Gary Fehn, owner of Fehn Companies, approached the podium and presented the Fehn project expansion. He stated that they have outgrown their current site and would like to get everything at one location. Gary was appreciative to the Commissioners and staff for reviewing the project. Scott Dahlke approached the podium and said that there were two issues he would like to discuss. The location of the trash enclosure being by the shop for both the office and the shop use and will have screening around it and all other city requirements. The other item to discuss is the dimension off of Barthel Drive to the stock piles that are being proposed. Brixius is concerned about noise and dust that will be associated with these stock piles. Gary Fehn commented that the stock piles are about 3Oft high. Gary Fehn stated that they currently have their stock and piles and do their crushing at a location in St. Michael. Fehn also stated that they would do the necessary things to mitigate any noise or dust that may arise from the crushing. Motioned by Zagorski, seconded by Hayden to open the Public Hearing. Ayes: Buhrmann, Anderson, Hayden, Huggins, Zagorski and Hudson. Nays: None. Absent. None. MOTION DECLARED CARRIED. Dan Lenz approached the podium and informed Commissioners that they believe that this is a very nice building plan to have on this corner and in Albertville and are in favor of the proj ect. El John Lee, the President of Mold Tech, a local business right down the road on Barthel Industrial Drive Ne. Lee asked the applicant if there have been any studies about the noise and crushing causing any vibrations, he said Mold Tech is a vibration sensitive company and they would need to know in order to prevent any issues. Gary Fehn responded that they are unsure and no studies have been done. Brixius asked the distance between Mold Tech and the proposed location of Fehns, and Dahlke stated a possible 600-700 feet. Dahlke stated that they do not do crushing on the current site, but they do operate heavy equipment and there have been no issues with that at this time. John Lee stated that they are hoping they are far enough away and if they were to have issues it would be a serious problem for their business. Lee also stated that he knows the vibration can vary based on the size of the crushers so if there is an issue, they may need to work with them on mitigating that issue. Lee commented on the site plan and that he would look forward to seeing the project as long as it doesn't cause the vibration issue. Brixius stated that if there are vibration issues, Fehns will need to take action on mitigating the issue. Anderson asked if we do not act now on the possible vibration issue with Mold Tech, will it be too late. Brixius stated that issue will be documented and that will be a condition listed under the conditional use permit. Motioned by Anderson, seconded by Hayden to close the Public Hearing. Ayes: Buhrmann, Anderson, Hayden Huggins, Zagorski and Hudson. Nays: None. Absent. None. MOTION DECLARED CARRIED. Motioned by Hayden, seconded by Buhrmann to approve the request from Fehns for the zoning map amendment change from an A-1 Agricultural/Rural District to a I-2 General Industrial District with the conditions outlined in the planner's report dated fanuary 7, 2021. Ayes: Buhrmann, Anderson, Hayden, Huggins, Zagorski and Hudson. Nays: None. Absent: None. MOTION DECLARED CARRIED. Motioned by Anderson, seconded by Zagorski to approve the request from Fehns for the preliminary and final plat with the conditions outlined in the planner's report dated fanuary 7, 2021. Ayes: Buhrmann, Anderson, Hayden, Huggins, Zagorski and Hudson. Nays: None. Absent: None. MOTION DECLARED CARRIED. Motioned by Hayden, seconded by Buhrmann to approve the request from Fehns for the variance for the parking lot surfacing with the conditions outlined in the planner's report dated January 7, 2021. Ayes: Buhrmann, Anderson, Hayden, Huggins, Zagorski and Hudson. Nays: None. Absent: None. MOTION DECLARED CARRIED. Motioned by Zagorski, seconded by Anderson to approve the request from Fehns for the site and building plan review with the conditions outlined in the planner's report dated January 7, 2021. Ayes: Buhrmann, Anderson, Hayden, 5 Huggins, Zagorski and Hudson. Nays: None. Absent: None. MOTION DECLARED CARRIED. Motioned by Buhrmann, seconded by Huggins to approve the request from Fehns for the conditional use permit for outdoor as stated in the planner's report dated fanuary 7, 2021, changing condition #1 to 400 feet instead of 450 feet, and change #6 to add that they would operate crushing on the east side of the stock piles to mitigate vibration/noise, and then add a condition #9 if the crushing vibration causes issues to surrounding properties that Fehns Company will need to address and mitigate the issues. Ayes: Buhrmann, Anderson, Hayden, Huggins, Zagorski and Hudson. Nays: None. Absent: None. MOTION DECLARED CARRIED. 4. OTHER BUSINESS A. None. 5. ADJOURNMENT Motioned by Zagorski, seconded by Hayden to adjourn the meeting at 8:42p.m. Ayes: Buhrmann, Anderson, Hayden, Huggins, Zagorski and Hudson. Nays: None. Absent: None. MOTION DECLARED CARRIED. Respectfully submitted, Maeghan M. Becker, Building Permit Technician Planning Commission Meeting Minutes 6 Regular Meeting of January 12, 2021 RTHWEST ASSOCIATED CONSULTANTS, INC. Olson Memorial Highway, Ste. 320, Golden Valley, MN 55422 phone: 763.957.1100 Website: www.nacplanning.com PLANNING REPORT TO: Adam Nafstad FROM: Alan Brixius DATE: March 3, 2021 RE: Albertville Thrift Store Study FILE NO: 163.05 - 20.09 BACKGROUND In December of 2020, the City of Albertville passed Ordinance No. 2020-07, an interim moratorium ordinance temporarily prohibiting new thrift stores in the City for 12 months. The moratorium ordinance provides an opportunity to conduct a study of thrift store locations, concentrations, and operational characteristics and determine the appropriate regulation of such uses within in the City. In response to the City's directive, this study will examine the operations specific to thrift stores, including the on -site in -take or drop-off of goods, the processing of goods, retailing, the warehousing of goods, and the distribution of to other facilities, and disposal or recycling of non -saleable goods. Further, this study will determine thrift stores' impact and their unique operations on -site planning, building design, and potential impacts on adjoining businesses. This study will also offer options to address the land use concerns through appropriate zoning amendments. The following steps were taken to formulate the study findings and recommendations: 1. Conducted internet search of current national trends in retailing and specifically the shopping trends at thrift and secondhand stores. 2. Established a definition of thrift stores/secondhand dealers and identifies the various businesses that fall within this definition or have similar land use characteristics. 3. Conducted a detailed photographic field inventory of thrift stores in the vicinity of the City of Albertville. The inventory is intended to identify locations, land use 4. and operational characteristics that distinguish thrift stores from other commercial businesses within the same zoning district. 5. Contacted the League of Minnesota Cities, the American Planning Association, and other cities to determine the extent of existing studies, information, experiences, and regulations that may exist on the topic of thrift stores. This information will help define the extent to which the City may apply new regulations. DEFINITIONS The definition of a "thrift store" is far-reaching in that the resale of used items includes a broad range of businesses, including antique shops, collectible stores, consignment shops, pawnshops, charitable and for -profit thrift stores. Each of these businesses takes in used items at their place of business and may process used items for resale. The Albertville Zoning Ordinance does not presently include a definition of the term "thrift store", "antique store", or "consignment store." The Ordinance does, however, include definitions of a "pawn shop" and "pawnbroker." The thrift stores inventoried by Staff were chosen and categorized according to the following definitions, the sources of which are listed: Antiques: "Antiques" means a business principally engaged in the sale or trading of articles which, because of age, rarity, or historical significance, have a monetary value greater than the original value or which, because of age, are recognized by the United States government as entitled to import duties less than those prescribed for similar new merchandise. Consignment: An agreement between a dealer and seller that enables the dealer to take temporary possession of secondhand property, owned by the seller, for the purpose of offering it for sale to the public. (American Planning Association) Pawnbroker: Any natural person, partnership or corporation, either as principal, or agent or employee thereof, who loans money on deposit or pledge of personal property, or other valuable thing, or who deals in the purchasing of personal property, or other valuable thing on condition of selling the same back again at a stipulated price, or who loans money secured by chattel mortgage on personal property, taking possession of the property or any part thereof so mortgaged. (City of Albertville) Pawnshop: The location at which or premises in which a pawnbroker regularly conducts business. (City of Albertville) Secondhand Goods: Tangible personal property, previously owned, or used, by a person other than the dealer offering the item for sale, including electronic audio or video equipment, firearms, power tools, computers, computer -related equipment, jewelry, coins, and precious metals. (City of Burnsville, MN) Secondhand Goods Dealer: Any person whose regular business includes selling or receiving secondhand goods, including auction house dealers, consignment house dealers, flea market dealers and antique dealers, but not including used car sales involving vehicles with titles requiring registration with the Minnesota Department of Motor Vehicles under Minnesota Statutes chapter 168, or boats required to be registered with the Department of Natural Resources. (City of Burnsville, MN) Thrift Store /Secondhand Store: A shop that sells used articles, especially clothing and other household items, most often supplied by donations from individuals dropping off the items at the shop, as to benefit a charitable organization or for -profit company. (Burnsville, MN) Given the definitions as mentioned earlier, an inventory of thrift stores within the Cities of Buffalo, Elk River, Maple Grove, Monticello, Plymouth, Rogers, and St. Michael constituted a search for "thrift stores," "consignment stores," or "collectibles." THRIFT STORE INVENTORY The City of Albertville presently has no thrift stores. A field inventory of the thrift stores in surrounding communities was conducted to gather information on location, concentration, and thrift stores' operational characteristics. The inventory reveals that sampled communities, as listed below, have 23 businesses that fall into the thrift store / second-hand dealer definition. Number of Thrift Stores, Consignment, or Secondhand Dealers Buffalo 4 Elk River 3 Maple Grove 7 Monticello 3 Plymouth 4 Rogers 1 St. Michael 1 Total 23 9 As shown above, the City of Maple Grove has more thrift store locations than its neighboring communities. This is attributed to Maple Grove having a larger, concentrated population and more commercially zoned land, and proximity to major arterials. The following map illustrates the locations of the thrift stores referenced above. The locations and siting characteristics of thrift stores are the same as other retailers typically allowed in commercial zoning districts. 1. Commercially zoned sites. 2. Locations that offer good visibility and access to a major collector and arterial streets. 3. Sites offer proximity to other retailers to take advantage of multiple retailers' accumulative attraction and business interchange between the stores. 10 t y 711 ti lop''.-.. f„ ED 20 IMF . F I - i �''�'y {0 � r - I W -- - V i. ` 9w..•. - i �F � ,r •. - of '" �► � ljJ��- 4 a • v � _F � I s CD - t it'� —� • d• it 1l f- �� I. _ I _ x 4 u 1 ' h 'y .4 Lim - e 0.1 s ' r �ff "•L• 1 0 I -- I tJ J 1 I ' t fD CD CD CD I I, �— - I CDA , bil y - i , 1 T , '1 ql _ ill ,r -s t A 5 . x V ..06 -- r 49tocktor� Lr� N - n Ca r - — I y} , ., Y � - __- - � -_• - it to -FyCD CD l lirs i F I CD I _, -_ -� .. _ ..- � CDI v .il' '',' ks � ��*{I(II-`d'1■'�° _-�' - __ -�_ _ _.- _ � I _� __ '_ -'� - - ._' � _alj� } qL On � t , { FEE � ��►��}y�`���( � ■ i' �� '�-- - - r I, r, S �rF f _ f , _ .. f - I ISSUES AND ANALYSIS Thrift stores and secondhand dealers are often subject to negative perceptions. The following section of this report includes common perceptions or issues associated with thrift stores. These issues have been identified followed by an analysis of the issue(s) / perception(s). Issue(s) / Perception(s): • Thrift stores/secondhand dealers locate in marginal retail locations and market to low-income households. Their introduction to an area reflects a declining commercial area. • Thrift stores/secondhand dealers make little investment in the properties they occupy. Analysis: Research of current news articles on thrift stores and retail trends reveals the following retail trends: 1. Thrift stores are growing in popularity across the country. As of 2019, there are more than 25,000 thrift stores and were growing at seven percent a year before Covid. 2. The appeal of thrift store shopping is growing beyond low-income households, including middle- and upper -income households, and luxury consignment stores have started opening. 3. Thrift store shopping has grown popular with younger shoppers who find the lower prices to be sensible and the uniqueness and quality of sold items to be desirable. Bargain hunting has become an entertainment. 4. In response to changing markets and shopping patterns, thrift stores/secondhand dealers have made changes in their building design, product display, and business appearance to improve the appeal to a broader market and create a better shopping experience. Issue(s) / Perception(s): • Non-profit thrift stores that purchase commercial property reduce the City's commercial tax base. 12 Analysis: The acquisition of property by a qualified non-profit organization can lead to the property becoming tax-exempt. The tax exemption is not available to the non-profit in a property lease arrangement. While the loss of a commercial tax base is a concern for communities, it is not a zoning issue. The following case law comes into effect — Town of Mount Pleasant vs. Legion of Christ Inc. — where the Court of Appeals of New York ruled in favor of Legion of Christ Inc. finding: "...The Town does not claim that the Legion's use of the property presents any traffic, health, safety or similar problem that was not also presented by IBM's use. Of course, there is one important difference to the Town — the Legion, unlike IBM, is tax-exempt. But keeping the property in taxpaying hands is not a legitimate purpose of zoning." In considering the potential impact of thrift stores on the community, the City must not distinguish between for profit and non-profit businesses. Rather, the regulations must pay attention to the land use and operational characteristics that distinguish thrift stores from other businesses and the extent to which regulations are needed to address land use compatibility issues, traffic, site operations, and nuisances. Issue(s) / Perception(s): • Due to a market focus to low-income families and low pricing, thrift stores do not contribute to the market draw of retailers that sell new merchandise. Analysis: The field inventory reveals that most of the smaller thrift stores that have a specialized product sales line (i.e., sporting goods, clothing, children goods) meet all City zoning standards and are generally indistinguishable from other tenants within the same shopping centers (i.e., Play It Again Sports, Samaritan Way, Turnstyle Consignment). Samaritan Way serves as anchor tenants for the shopping center. This thrift store generates customer traffic and business interchange to benefit all the businesses within the shopping center. Site inspection reveals an attractive shopping center. Their receipt of used goods on -site is limited to their product lines, and the processing appears to be wholly contained within the building. 13 Play It Again Sport's (Buffalo) Issues) / Perception(s): Samaritan Way (Elk River) • Outdoor donation collection areas for thrift stores are unsightly, create outdoor storage issues, illegal dumping, and collect debris. • Larger thrift stores with on -site donation drop-offs, donation processing, and on - site warehousing of secondhand goods can extend beyond the building, resulting in outdoor storage, semi -trailer parking, or use of outdoor storage containers. These outdoor activities can be unsightly and interfere with a shopping center's site design and operation when not regulated. This is a particular issue with introducing a thrift store into an existing building or tenant space not designed for large thrift store collection operations. Analysis: The field inventory reveals that larger general merchandise thrift stores have operational characteristics that distinguish them from other retail businesses. While the primary use of these facilities is retail sales, the receipt of used goods, the processing of used goods, warehousing and distribution of goods, and disposal or recycling of non -saleable items frequently extended beyond the building and can interfere with site activities and impact the appearance of the site and surrounding properties. On -Site Donation Drop -Off Areas 1. The field inspection reveals that the drop-off areas for the receipt of used goods can negatively impact the commercial site if not adequately planned and screened. The Goodwill stores in Monticello and Rodgers provide good examples of well -designed drop-off areas. These stores have drop-off areas segregated from customer parking and driveway areas. The drop-off is integrated into the building design with receipt of goods occurring within the building or a walled area. These designs reduce outdoor operations, nuisance 14 problems for neighboring businesses or properties, and security for the site to discourage illegal dumping. Goodwill (Monticello) 5.! ryy -3A Goodwill (Rodgers) Outdoor donation collection areas that are not properly planned can interfere with on -site traffic circulation. Outdoor operations can create nuisance issues related to noise, lighting, and junk accumulation, resulting in an unattractive commercial site. Salvation Army (Elk River) Treasure Thrift (Savage) 2. As shown in the inventory photographs, the on -site receipt and processing of donations frequently expand the thrift store's storage needs beyond the building, resulting in the use of semi -trailers and exterior storage containers. The product storage needs of larger thrift stores distinguish this use from other businesses or shopping center tenants. When not regulated and designed into the building and site this outdoor storage can interfere with site operations (i.e., site traffic circulation, on -site deliveries, garbage collection, and fire lanes). Additionally, the use of trailers and storage containers of outdoor storage can detract from the commercial site's aesthetic appearance or shopping center. The use of outdoor storage containers and semi -trailers for storage is contrary to City ordinances that require accessory commercial buildings to be designed to match the principal building. 15 Savers (Apple Valley) i�m- -w . Goodwill (Eagan) 3. Thrift stores with on -site donation collection and processing generate high volumes of waste and recyclables. If sites are not planned for a large thrift store operation, the waste disposal/recycling areas are not large enough or equipped to accommodate the volume or type of waste as illustrated in the photo inventory. Savers (Bloomington) Treasure d Flu N_ d V t , �M Thrift (Savage) While thrift stores and secondhand dealers are predominately retail operations, their on - site donation collection, donation processing, storage, and waste disposal distinguish these land uses from other retailers. This distinction provides a basis for the City to consider zoning standards specific to thrift stores and secondhand dealers. Below are thrift and consignment stores in the area, as shown in the map on page ()that showcase a variety of good and bad design examples. THRIFT STORES Poor Examples 1) St. Vincent De Paul — 200 Central Avenue East, St. Michael This store is located north of Central Avenue and east of 2nd Street. The store occupies a former single-family home constructed in the 1940's. The subject site is zoned 6-2, Downtown Commercial. Nearby uses include a beaty salon, a 16 coffee shop, a medical clinic, and several single-family homes. Donations are received on the west side on the property via a driveway along 2nd Street. Y 54 Vi,��+c� teed[e FORE, EMOPOF a71 11 rlr x•i: a! 2) Wise Penny Thrift Store — 310 Brighton Avenue, Buffalo This store is located north of loth St Ne and west of Highway 55. The subject site is zoned B-4 General Business. The store is a two-story masonry and metal - sided building surrounded by retail, offices, and commercial uses. Donations are received on an appointment -only basis on three days off the week. The building has a gate on the northern portion to allow for drive -up appointments. Good Example 1) Goodwill — 20870 Rogers Drive, Rogers This store is located north of Interstate 94 and east of Highway 101. The subject site is zoned B-2, Commercial Business. The store is relatively new construction 17 and occupies the western on -half of a two -tenant "big box" building. The east one-half of the building is presently vacant. Nearby uses include automotive dealerships and various retail uses. Donations are received on the north side of the building and are screened from view from the Rogers Drive from which access to the site is provided. SECONDHAND GOODS DEALERS (Consignment Stores) 1) Play It Again Sports (Secondhand Goods Dealer — Consignment) — 1249 MN-25, Buffalo Located in a small shopping center near the intersection of County Road 25 and John Ause Memorial Dr. The area is zoned B-4, General Business. The shopping center is new in appearance, with plenty of parking. The shopping center is anchored by Walmart and includes other retail uses such as Maurice's and Sally Beauty. Play It Again Sports's front and rear appearance are similar to surrounding businesses in the center. The rear of the store provides a rear entry door and sheltered waste disposal container. There is no drive -up area for bringing in -merchandise, and cosigning is conducted via walk-in appraisal. 18 THRIFT STORE / SECONDHAND DEALER REGULATIONS The following section examines the current zoning regulations for thrift stores and secondhand dealers in Albertville and neighboring communities (Buffalo, Monticello, Otsego, Rodgers, etc). This study also reviewed the regulations of communities that have major regional shopping malls (Edina, Minnetonka, Roseville and Maplewood). Communities with more aggressive zoning regulations for thrift stores and secondhand dealers were also examined (Maple Grove, Columbia Heights, and West St. Paul). An internet search of communities from outside the state having thrift store regulations was conducted. In conjunction with the ordinance review, we corresponded with the planning staff of certain cities to better understand the issues and philosophies these cities used in the development of their regulations. ZONING Albertville and most of its surrounding communities do not have zoning standards that specifically regulate thrift stores' location and design and secondhand dealers. Albertville prohibits the use of Pawn Shops in all commercial zoning districts. These communities have treated thrift stores and second hand dealers as permitted retail uses and held them to other retailers' same standards in the same zoning districts. Each study community has commercial standards for building design, parking, loading, and waste disposal. The study inventory reveals that nearby thrift stores generally meet City commercial standards. The problems with thrift store operations are typically a result of the business' success. As the business grows and receives larger volumes of donations, the receipt of goods, processing of goods, and storage of goods, and disposal of non -saleable items often extend beyond the building, resulting in on -site operation concerns and code enforcement problems. Buffalo regulates secondhand stores under the same code as pawnbrokers and is permitted in B-4 General Business District and needs a license to operate. However, Buffalo excludes the licensing requirements for charitable/non-profit organizations for thrift stores/secondhand dealers, as such, the rule only applies for -profit thrift and second hand store. Otsego defines secondhand deals as "a person, partnership, firm or corporation whose regular business includes selling or receiving tangible personal property (excluding motor vehicles) previously used, rented, owned, or leased. The term secondhand dealer shall include pawnbrokers and antique shops". Requires licensing of pawnshops, precious metal dealers and for profit thrift stores and secondhand dealers. Otsego exempts from licensing "the business of buying, selling or consigning secondhand goods such as clothing, shoes, housewares, household goods, 19 decor and/or furniture, non-profit charitable organizations." Otsego's code treats thrift stores and secondhand dealers as commercial retail and does not limit their placement in the City. Rogers regulates secondhand stores under the same code as pawnbrokers and precious metal deals. As such, to operate a secondhand store, you need to apply for a license. Expressly, Rogers excludes sales by charitable organizations of donated items; thus, the rule would only apply to for -profit thrift and secondhand stores. Allowed in commercial zoning districts. Through this study, four metro communities have been found that have zoning regulations that specifically govern thrift stores and secondhand dealers. Edina allows thrift stores as a permitted use within its PCD -1 commercial zoning district but limits the store size not to exceed 2,500 square feet. The use is not allowed in its other commercial zoning districts. West St. Paul requires a conditional use permit for used merchandise stores and establishes the following performance standards: Used merchandise stores, provided all of the following conditions are met. (1) Used merchandise is limited to clothing and related accessories. (2) The transfer or sale of merchandise is conducted entirely inside a building. (3) There is no outdoor storage of any kind. (4) The floor area for the use is no greater than 2,000 square feet. Columbia Heights establishes the following zoning standards for consignment/ secondhand dealers stores and is a conditional use: (14) Consignment/ secondhand store (a) Consignment /secondhand stores shall be identified as stores whose primary existence is derived from more than 50% used, consigned, or secondhand merchandise. The use shall be located at least 3,000 feet from all consignment / secondhand stores, currency exchanges, pawnshops, and precious metal dealerships. 20 (b) The window and door area of any existing first floor fagade along a public street shall not be reduced, nor shall changes be made to such windows and doors that block the views into or out of the building at eye level. (c) For new construction, at least 30% of the first floor fagade along the public Street or sidewalk shall be windows or doors of clear or lightly tinted glass that allows views into and out of the building at eye level. (d) The use of bars, chains, or similar security devices that are visible from a public street or sidewalk shall be prohibited. (e) Consignors shall not be paid for merchandise until the merchandise is sold to a third party. (f) An appointment or set hours shall occur within a completely enclosed building. (g) All receipt, sorting and processing of goods shall occur within a completely enclosed building. (h) The premises, all adjacent streets, sidewalks and alleys and all sidewalks and alleys within 100 feet of the use shall be inspected regularly for the purpose of removing litter found thereon. Minneapolis establishes the following standards for consignment and secondhand goods stores and is a permitted use: Consignment clothing store. (1) Only clothing, shoes and related accessories shall be sold. (2) Individual consignors shall not be paid for the merchandise until the merchandise has been sold by the consignment store to a third party. (3) An appointment or set hours shall be required for the acceptance of merchandise. (4) No donations shall be accepted Secondhand goods store. (1) Back -lighted signs, back -lighted awnings, portable signs, temporary signs, and freestanding signs shall be prohibited. 21 (2) The window and door area of any existing floor fagade that faces a public street or sidewalk shall not be reduced, nor shall changes be made to such windows or doors that block views into the building at eye level. (3) For new construction, at least thirty (30) percent of the first floor facade that faces a public street or sidewalk shall be windows or doors of clear or lightly tinted glass that allow views into the building at eye level. (4) The use of bars, chains or similar activity security devices that are visible from a public street or sidewalk shall be prohibited. (5) The premises of all adjacent streets, sidewalks and alleys, and all sidewalks and alleys within one hundred (100) feet shall be inspected regularly for purposes of removing any litter found thereon. (6) All receipt, sorting, and processing of any goods shall occur within a completely enclosed building. (7) An appointment or set hours for the acceptance of donated goods shall be required. The aforementioned regulations provide examples of how some communities have addressed thrift stores and secondhand dealers within their communities. Edina limits the size of their thrift stores to allow boutique specialty used goods and consignment stores. West St. Paul, Columbia Heights, and Minneapolis have more aggressive regulations of secondhand stores, establishing specific performance standards to mitigate issues related to thrift store operations, including on -site collection, processing, storage, and disposal of used goods. The use of the conditional use permit in West St. Paul provides a conditional use process and public hearing that ensures a thorough business review. The conditional use permit also provides a process for revocation if the terms of approval are violated. In discussing the Columbia Heights ordinance with City staff, they indicated that secondhand dealers were grouped with pawn shops and currency exchange businesses as commercial uses that may provide opportunities for the commission of crimes. The spacing requirement is intended to limit the number of locations within the City for these uses and avoid these commercial uses' concentration. In our conversation with their staff, it was indicated that since the original Ordinance was adopted, the City has undertaken amendments to the definition of consignment/secondhand dealers to provide exceptions to the spacing guidelines for antique shops, secondhand furniture stores, secondhand clothing stores and 22 consignment clothing stores. The City saw these secondhand business exceptions as uses that contribute to the community's overall commercial draw. Staff researched ordinances outside of Minnesota. The articles and ordinances researched have cities treating thrift stores like other retailers. In contrast, other communities have established specific regulations to address the collection, processing, and warehousing of products on site. Still, other communities have required spacing standards between uses or have outright prohibited these uses in select zoning districts. STUDY FINDINGS 1. The thrift store definition encompasses a broad variety of businesses, including antique shops, consignment shops, pawnshops, collectibles, specialty thrift stores, and general merchandise secondhand stores. This definition includes both for -profit and non-profit establishments. 2. Nationally thrift stores are growing in number and popularity. The customer profile is expanding to include younger consumers and a broader range of income groups. 3. Albertville specifically lists Pawnshops as a prohibited use in all business zoning districts. Thrift stores/secondhand dealers are not distinguishable from other retail use and are permitted uses in all commercial zoning districts. 4. Albertville does not have zoning regulations specific to the establishment of thrift stores/secondhand dealers within the community. RECOMMENDATION This study has revealed that thrift stores, which include collectible stores, consignment shops, and pawnshops, have some unique operational characteristics. These businesses receive used items at their place of business and process the used items for resale. Larger thrift stores often have operational characteristics that distinguish them from other retail businesses of similar size. While the primary use of these facilities is retail sales, the receipt of used goods, the processing of used goods, warehousing and distribution of goods, and disposal or recycling of non -saleable materials frequently extends beyond the building. It can interfere with site activities and impact the appearance of the site. The following recommendations are offered as a means of addressing identified land use and operational issues associated with thrift stores in the City of Albertville: Definitions 23 Add definition of a thrift store to Chapter 200.2 Definitions of the Albertville Zoning Ordinance as follows: THRIFT STORE I SECONDHAND DEALER: A business that sells used items and includes any of the following operational characteristics: (A) Receipt of used items directly from the public at the business location. (B) Processing, conditioning, cleaning, or repair of used items for resale. (C) Storage of used items on site for processing, resale, or disposal. (D) Receipt of goods through purchase, consignment, or donation. By establishing the definition in the Zoning Ordinance, the City will distinguish thrift stores from other retailers. The City may then list thrift stores in appropriate zoning districts and establish performance standards specific to this use. General Provisions Amend the Zoning Ordinance to address the location and placement of drop boxes and recycling bins. City staff has recommended the following text amendment: 1000.14: REFUSE RECEPTACLES; LOCATION AND SCREENING: The following provisions apply to commercial, industrial, institutional, and residential structures with more than four (4) units: 1. Storage: All refuse, recyclable materials, rgoods, recyclables, or other materials, necessary handling equipment including, but not limited to, garbage cans, recycling bins, and dumpsters shall be stored within the principal structure, within an accessory building, or a trash enclosure that totally screens the equipment from eye level view from all neighboring uses and the public right of way. (Ord. 2019-11, 12-16-2019) This amendment clarifies the City's current interpretation that any placement of outdoor vending machines, donation drop boxes, and recycling bins will only be allowed within commercial zoning districts where outdoor storage is allowed by conditional use permit. Zoning Districts Permitted Use: Thrift stores / secondhand dealers less than 2,500 square feet in size as permitted uses in the following commercial zoning districts: B-2 Limited Business District, B-2A Special Business District, B-3 Highway Commercial District, and B- 24 4 General Business District. Provided all merchandise collection, transfer, and storage occur within the building. In this regard, no accessory outdoor drop-off area or outdoor storage would be allowed upon the site. Conditional Use: Thrift stores/secondhand dealers 2,500 square feet or greater in size shall be conditional uses in the following select commercial zoning districts: B-2A Special Business District, B-3 Highway Commercial District, and B-4 General Business District. Such uses would be subject to the following requirements: a. All merchandise drop off, transfers, processing, and storage shall occur within the principal structure. b. No exterior storage or the use of exterior storage containers or semi- trailers shall be allowed upon the site. C. Waste and recycling receptacles shall be properly sized, located and screened in accordance with 1000.14 of the Ordinance as reiterated below: Storage: All refuse, recyclable materials, goods, recyclables, or other materials, necessary handling equipment including, but not limited to, garbage cans, recycling bins, and dumpsters shall be stored within the principal structure, within an accessory building, or a trash enclosure that totally screens the equipment from eye level view from all neighboring uses and the public right of way. (Ord. 2019-11, 12-16-2019) d. Accessory drive -through lanes leading to and accessing the indoor collection area shall meet the following conditions: (1) Drive -through lanes shall not be permitted within the front or side yards abutting a street. (2) Drive -through lanes shall be designed and depicted on the site in a manner that segregates the drop-off lane from drive lanes, parking spaces, and sidewalks. (3) The drive -through lane shall be a minimum of twelve (12) feet wide and provide up to one hundred twenty (120) feet of automobile stacking and drive -through lane cannot open directly onto a public street. Automobile stacking shall not interfere with on -site drive lanes, fire lanes, parking stalls, loading areas, access to trash dumpsters, or sidewalks. Overflow automobile stacking beyond the service lane shall not extend into any public street right-of-way or interrupt traffic on a public street. 25 (4) Screening shall be provided of the drive -through lane from residential use and street right of way. Such screening shall be at least six (6) feet in height and fully opaque. (5) No outdoor audio equipment shall be permitted with adrive-through lane. (6) Directional and operational signage shall be provided to direct customers to the drop-off lane and explain the drop-off process. The City has expressed concern over the potential proliferation of thrift stores in the area of the Albertville Premium Outlets. This area is zoned PUD 6-3, Highway Commercial District which is also common in other areas of the City. The zoning in the district has a set of approved uses and as such would not allow for the thrift store/secondhand dealers in the zoning district. The study is being provided to the Planning Commission for recommendations regarding thrift store/secondhand dealer zoning regulations before being sent to the City Council for consideration. 26