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HomeMy WebLinkAboutMinutes - 09/19/2013 - Planning and Zoning CommissionCity of McHenry Planning and Zoning Commission Minutes September 19, 2013 Chairman Strach called the September 13 regularly scheduled meeting of the City of McHenry Planning and Zoning Commission to order at 7:30 p.m. In attendance were the following: Buhrman, Doherty, Morck, Sobotta, Strach, and Thacker. Absent: Nadeau. Also in attendance were: Deputy City Administrator Martin and Planning and Zoning Secretary Wolf. Approval of Minutes Motion by Thacker, seconded by Doherty, to approve the minutes of the Planning and Zoning Commission Meeting as amended: August 15, 2013 regularly scheduled meeting. Voting Aye: Buhrman, Doherty, Morck, Sobotta, Strach and Thacker. Voting Nay: None. Not Voting: None. Abstaining: None. Absent: Nadeau. Motion carried 6-0. Public Hearing: TitleMax of Illinois, Inc. File No. Z-822 4405 W. Elm Street Use Variance Chairman Strach called the Public Hearing to order at 7:35 p.m. regarding File No Z-822 an application for a use variance to allow a financial institution as submitted by TitleMax of Illinois, Inc. for the property located at 4405 W. Elm St. Chairman Strach stated Notice of the Public Hearing was published in the Northwest Herald on August 30, 2013. Notices were mailed to all abutting property owners of record as required by ordinance. The subject property was posted. A Certificate of Publication and Affidavit of Compliance with notice requirements are on file in the City Clerk’s Office. In attendance were Attorney Mark Daniel, 136 W. Vallette St, Suite 3, Elmhurst, IL; and Jeff Cermak, 319 Uvedale Road, Riverside, IL; and Bernie Matchen, 3808 Maple, McHenry, who were sworn in by Chairman Strach. Mr. Daniel provided a summary of the request before the Commission at this Hearing stating they are seeking a use variance under the City’s current code for TitleMax to operate a financial institution on the property. Mr. Daniel distributed a statement from the petitioner regarding recent history relating to C-5 financial institutions and the applicant’s rebuttal of the Staff report on this file. Mr. Cermak gave a summary of TitleMax operations and a business description stating he handles their expansion in Illinois and Wisconsin. He further opined that the typical clientele for TitleMax are customers with dings on their credit needing smaller, short-term loans quickly and are unable to get loans from banks, also stating that 80% are repeat customers. Mr. Cermak also stated that the loans are secured by vehicle titles, they don’t do check cashing or pay day loans. Hours of operation for the Planning and Zoning Commission September 19, 2013 Page 2 business would be 10am-7pm Monday thru Friday, Saturday 10a-4pm and they are closed Sundays. Mr. Cermak further stated the business is typically not dependent on city services in any way. Mr. Daniel explained the business is not a pawn shop or pawnbroker. It is his opinion that most clientele include professionals, double-income families, households with underwater mortgages, and small business clients. He stated vehicle titles serve as collateral but no vehicles are brought back to the site if repossession occurs – office aspect is the only business that will be transacted on the property. They encourage earliest payoff of loans as possible and loans typically are one to two year lengths. Mr. Daniel stated the comprehensive plan seems to indicate a “center” be developed in the area of Route 120 this property is in, but opined it would be impossible to put a center on even 2 of the lots along West 120 due to their smaller sizes. Mr. Daniel opined the size and placement of the subject lot and surrounding properties does not constitute valid placement of a long-standing reliable tenant-operated restaurant. Mr. Cermak stated neighborhood vacancies are high in the area and TitleMax would be a national tenant filling the property with a business with a 10-year lease along with a 5-year extension. Mr. Cermak stated he was a site-selector for Starbucks Corporation and a business such as Starbucks makes it very hard to approve sights that had vacant units on them, such as this property. He stated he sees municipalities that put businesses such as TitleMax in and it starts the process of revitalization and obtaining more quality tenants. Mr. Cermak and Mr. Daniel stated 4509 W. Elm St. and 4405 W. Elm St. are very similar properties both dealing with an adaptive reuse of vacant property with vacant buildings. Mr. Daniel stated C-5 districts can have other uses but the center development commercial recommended for the C-5 lots in the comprehensive plan are not possible due to the lot size of this property. Mr. Daniel stated that is part of the hardship on the applicant. Mr. Matchen stated a history of his tenants since 1996 and the financial difficulties all of the tenants caused him throughout the years. He stated he will never be in a position to economically have a restaurant as a tenant in the future, further stating he has experienced a loss with each tenant since 1996 and now his only option is to sell the property. Mr. Daniel opined having multiple tenants in a one to two year period is more difficult economically than having to pay the mortgage on a property that simply remains vacant. Mr. Daniel stated current vacancy, the turbulent history of tenants, and the size and layout of the lot constitutes a hardship. He stated 4509 W. Elm St. was approved recently for a use variance to allow a financial institution and 4405 W. Elm is another unique situation in the same block and should be approved as well. Mr. Daniels compared legislative findings in C-5 uses since 2004. Mr. Daniel believes the use will not alter the character of the community and traffic will be minimal to the property and traffic patterns will not change. He further stated the use is consistent with the comprehensive plan and will be attractive to individuals and families of diverse backgrounds and that TitleMax is vested in the community and the property. Mr. Daniel stated the future land use map makes no distinction between commercial use and financial use. He focused on the City’s comprehensive plan and stated the use variance only needs to show practical difficulty and opined if the practical difficulty is not self-imposed the variance should be approved. Mr. Daniel opined practical hardship is the strongest foundation of this application. Deputy City Administrator Martin provided the Commission with the Staff Report regarding this matter stating the subject property was formerly the home of Bernie’s Garage and Diner and other restaurants Planning and Zoning Commission September 19, 2013 Page 3 including Ricci’s Grill, Bacci Pizzeria, Riviera Pizzeria, and most recently Route 120 Hotdogs N’More, which closed its doors earlier this year. TitleMax of Illinois, Inc. is proposing to open a financial institution on the subject property. Approximately one-year ago a use variance was granted to allow a residential use and financial institution at 4509 W. Elm Street for Mid-West Title Loans. The use variance is required to specifically permit the proposed financial institution in the C-5 zoning district. Staff believes while there are similarities between the two properties, 4405 and 4509 W. Elm, there are also some notable differences. Deputy City Administrator Martin further explained the differences, stating that the property at 4509 W. Elm had been vacant for several years prior to being occupied by Mid-West Title Loans, whereas the property located at 4405 W. Elm has been vacant for less than one year. The property at 4509 W. Elm Street is a couple hundred feet deeper, narrower, and the building is setback much further from the roadway than the building at 4405 W. Elm St. The property at 4509 W. Elm Street is also a mixed-use building. Deputy City Administrator Martin also stated adaptive reuse of an existing building is always a positive that doesn’t preclude rebuilding or redeveloping an entire site, and the comprehensive plan for the area does state a preference for an center but that is one aspect and not the only thing Staff is looking toward for re-use or redevelopment of the property. He stated all of the requirements of Table 32(A) must be satisfied – 1. Practical Difficulties or Particular Hardship, 2. Reasonable Return, 3. Unique Circumstance, 4. Not Alter Local Character, and 5. Consistent with Comprehensive Plan - to approve a positive recommendation for the use variance. Staff does not find all requirements in Table 32(A) of the zoning ordinance have been satisfied in this zoning application and is recommending denial of a use variance to allow a financial institution, stating Staff does not believe a hardship exists at the subject property to justify the proposed land use and is not convinced the property could not develop a reasonable return if restricted to other land uses in the C-5 zoning district, which may or may not necessarily be a restaurant. The subject property has been vacant for less than a year, and there are no unique circumstances peculiar to the site, which generally do not apply to other properties within this same zoning district – in fact, other sites in this area are all very similar. Additionally, there are several different types of financial institutions in close proximity to the subject property and C-2, 3, and 4 zoning districts already allow financial institutions. Chairman Strach invited questions and/or comments from the Commission. Commissioner Doherty asked for clarification on the property as to whether Mr. Matchen was selling the property or leasing it to TitleMax. Mr. Cermak stated that the property will be sold to an investor and then a 10-year lease with a 5-year renewal will be rendered to TitleMax. Commissioner Thacker inquired if the existing building would be demolished. Mr. Cermak stated it will not be demolished but rather completely renovated to the highest standards meeting present building codes for safety. Mr. Daniel addressed staff comments stating the staff memo did not touch on practical difficulty and one of the criteria for Table 32(A) is to prove a practical difficulty or a particular hardship. He stated practical difficulty is different and arises with properties that fall in the middle of situations that were not contemplated when zoning amendments are implemented. A similar financial institution has already been approved on the same block and the TitleMax application provides more parking and maneuvering space. Mr. Daniel stated a use variance is needed to provide relief from something that you may not have foreseen when the zoning was amended in 2004 and C-5 does have a legislative finding for allowing financial institutions as a permitted use. Planning and Zoning Commission September 19, 2013 Page 4 Commissioner Thacker stated he did check the site personally and 4509 W. Elm is deeper, but it also has a residential home in the rear. He asked why the depth of the property is relevant to the business. Mr. Daniel stated that 4509 W. Elm is part residential and the depth of the property demonstrates the uniqueness and that the use could be extended to the south at 4509 W. Elm but it cannot be on 4405 W. Elm. Commissioner Buhrman inquired if the intent of the purchase is to be used for a TitleMax business only. Mr. Cermak stated they are only here representing a use on the property for a TitleMax. Mr. Buhrman asked if any TitleMax businesses have had to close permanently. Mr. Cermak stated none have closed to his knowledge. He stated there are stores in 50 stores in the state, including Belvidere, Geneva, Waukegan, Lake Villa, and Crystal Lake with a total holding of 200-300 stores. Commissioner Buhrman inquired if they have had issues with dissatisfied customers they are aware of or are willing to discuss. Mr. Cermak stated he was unaware of any, but a TitleMax employee has indicated to him that it is rewarding to work for TitleMax because they’re able to help people who are having difficulties in life financially due to circumstances beyond their control. Mr. Daniel stated there have been issues with length of the loans in other states, but that Illinois regulates these uses more aggressively believing the longer it takes to pay a loan off the higher a risk it becomes. Mr. Cermak stated TitleMax rarely has to repossess a vehicle and that repossession actually accounts for less than 1% of the bad loans. Commissioner Thacker asked Mr. Matchen if he was only approached by restaurants as tenants in his ownership time. Mr. Matchen replied affirmatively and stated potential tenants always asked for concessions on rental terms as well. He opined they wanted partners more than a landlord. Mr. Matchen stated he is now only interested in selling the property, not renting it. Chairman Strach stated he has a list of several other permitted uses in a C-5 zoning district if anyone would like to see it and reminded commissioners that all items in Table 32(A) must be satisfied and addressed when votes are cast in this hearing. Commissioner Thacker stated he was not present at the zoning hearing for 4509 W. Elm and asked if the same criterion was required at that hearing as for this one. Commissioner Buhrman responded affirmatively. Commissioner Doherty asked Deputy City Administrator Martin what the competition factor is for title loan companies. Deputy City Administrator Martin responded to his knowledge Midwest Title Loan at 4509 W. Elm and Illinois Title Loan on Kane St. are the only other establishments that are exclusive to title loans, but there are several other financial institutions in the City that do similar types of lending but are not specific title loan facilities. Some of those institutions, such as the one at Oak and Route 31, are not in C-5 zoning districts but in the C-3 zoning district. Chairman Strach opened the floor to questions and comments from the audience. There was nobody in attendance who wished to address the Commission regarding this matter. Chairman Strach closed the public comment portion of the hearing at 8:36 p.m. Motion by Buhrman, seconded by Thacker, to recommend to the City Council with regard to File No. Z- 822, an application for a use variance to allow a financial institution on the property located at 4405 W. Elm St. as presented by applicant TitleMax of Illinois, Inc be approved, and that Table 32(a), of the Zoning Ordinance, has been met. Planning and Zoning Commission September 19, 2013 Page 5 Voting Aye: Buhrman, Doherty, Morck, Sobotta, Strach, and Thacker. Voting Nay: None. Not Voting: None. Abstaining: None. Absent: Nadeau. Motion carried 6-0. Commissioner Buhrman stated he initially had concerns regarding the number of similar financial institutions in the community but after this discussion believes TitleMax might be the appropriate use for this property. Commissioner Doherty stated he is not thrilled about the concept of the TitleMax business but agrees placement of the building poses a challenge and feels this use is alright. Commissioner Thacker stated he does believe there is a hardship due to the size of property. He further opined the City needs to establish consistency and he does not believe there are enough differences between 4405 W. Elm St. and 4509 W. Elm St. Chairman Strach closed the Public Hearing regarding File No. Z-822 at 8:40 p.m. Staff Report Deputy City Administrator Martin stated the next meeting is October 17, 2013 and the only case for that date so far is a hearing on affordable apartments to be located near Colonial Funeral Home. Other Business Commissioner Buhrman inquired if Staff has a timeline on the need to review City ordinances, especially in regard to financial institutions and particular hardships and lot sizes. Commission Chairman Strach stated redevelopment of property is difficult and each property is unique and needs a separate discussion. Deputy City Administrator Martin stated the City continually reviews City ordinances and this issue could be looked at a future date. Adjournment Motion by Buhrman, seconded by Thacker, to adjourn the meeting at 8:45 p.m. Voting Aye: Buhrman, Doherty, Morck, Sobotta, Strach and Thacker. Voting Nay: None. Not Voting: None. Abstaining: None. Absent: Nadeau. Motion carried 6-0. The meeting was adjourned at 8:45 p.m. Respectfully submitted, _____________________________________ Dorothy M. Wolf, Planning & Zoning Secretary City of McHenry