V. 2. Planning Application 2018-15-CUP 8090 Excelsior Blvd (Dock 1 Bargains)
December 18, 2018 Planning Application 2018-15-CUP
Conditional Use Permit for Jacob’s Trading, LLC (Dock 1 Bargains) Located at
8098 Excelsior Boulevard (PID 19-117-21-14-0006)
Proposed Action: Move to adopt Planning & Zoning Resolution 2018-12, recommending the
City Council approve a conditional use permit for Jacob’s Trading, LLC (Dock 1 Bargains) to
operate a subordinate retail use in an Industrial zoning district at 8098 Excelsior Boulevard (PID
19-117-21-14-0006), subject to conditions.
Overview
The applicant, Jacob’s Trading, LLC, requests a conditional use permit to allow the operation of
a subordinate retail use in the I-2, Industrial zoning district. Jacob’s Trading Company is a
wholesale buyer/distributor of excess, customer returns and/or closeout goods directly to
retailers. They now wish to diversify their business to include direct selling to the public at their
warehouse location. According to the applicant, use of a portion of their warehouse as a
supportive retail space is needed to keep their business viable in a rapidly changing competitive
environment. The I-2, General Industrial district allows a limited amount of retail or service use
provided it is secondary and directly related to the primary industrial use through a conditional
use permit. Staff has reviewed this application against the conditional use permit standards and
recommends approval of this request.
Primary Issues to Consider
• Background
• Conditional Use Permit Standards
• Alternatives
Supporting Documents
• Planning & Zoning Commission Resolution 2018-12
• Site Location Map
• Applicant’s Narrative
• Plans
_____________________
Jason Lindahl, AICP
City Planner
Financial Impact: $ N/A Budgeted: Y/N ____ Source: _____________
Related Documents (CIP, ERP, etc.): _________________________________________
Notes:
Planning Application 2018-15-CUP
Page 2
Background. According to the applicant, Dock 1 Bargains is a unique discount warehouse
open to the public offering quality brand name merchandise well below standard retail pricing
(see attached narrative). Most of the merchandise in their warehouse is open box, excess
inventory, and returned merchandise from big box retailers such as furniture, electronics,
housewares, outdoor patio, sporting goods, toys and tools. The use of this space as a retail
location is needed to keep their business viable in a rapidly changing competitive environment.
Dock 1 Bargains offers these goods at significantly reduced prices. This business model is only
possible by reducing storage and handling costs through selling directly from a warehouse
facility.
It should be noted that Dock 1 Bargains began operation without the necessary zoning
approvals. Staff only became aware of their operation after hearing advertisements on the radio
and noticing a temporary banner sign placed on a parked semi-trailer. Staff also received an
exterior lighting complaint from the adjacent Interlachen Park neighborhood. Once staff was
aware of these issues, we reached out to the property owner Alex Ugorets who facilitated a
connection with the business. Both the property owner and business owner have been
cooperative with correcting the exterior lighting and signage violations and applying for the
necessary conditional use permit.
Conditional Use Permit. Conditional use permit applications are considered quasi-judicial
actions. In such cases, the City is acting as a judge to determine if the regulations within the
Comprehensive Plan, Zoning Ordinance and Subdivision Ordinance are being followed.
Generally, if the application meets these requirements they are approved. In evaluating this
conditional use permit application, the City shall consider and require compliance with the
specific conditions for retail or service uses subordinate to a principal industrial use in Section
530.09, Subdivision 1.b and the general conditional use standards detailed in Section 525.13,
Subdivision 15. The City Council may impose conditions and require guarantees in the
granting of conditional use permits. Any use permitted under the terms of any
conditional use permit shall be established and conducted in conformity to the terms of such
permit.
Section 530.09, Subdivision 1.b. The specific standards for subordinate retail or service uses in
industrial districts are detailed below. These uses must be at least 10 percent but not more than
25 percent of the principal industrial use.
1. That a traffic study is completed.
Findings: Based on staff observation of the existing business and lack of any specific traffic
complaints related to their operation, staff is agreeable to waiving the standard for a traffic
study. The City reserves the ability to require a traffic study in the future based on observed
traffic issues or complaints.
2. Such accessory use is completely enclosed within the principal structure.
Findings: Based on information from the applicant and periodic site inspections, Dock 1
Bargains operates completely inside their warehouse.
Section 525.13, Subdivision 15. General conditional use permit standards.
Planning Application 2018-15-CUP
Page 3
a) Consistency with the elements and objectives of the City's development plan, including the
comprehensive plan and any other relevant plans at the time of the request.
Finding: The existing office warehouse use with associated retail is consistent with the
comprehensive plan. The future land use map in the 2030 Comprehensive Plan guides the
subject property as BP – Business Park. This category allows for office and office-services
uses such as office-showroom, research and development facilities or banks.
b) Consistency with this ordinance.
Finding: The proposed subordinate retail use is consistent with the existing I-2, General
Industrial district. This district allows for retail or service uses subordinate to the principal
use as a conditional use, provided such uses exceed 10 percent but not more than 25
percent. According to the applicant, Dock 1 Bargains occupies approximately 25,000 to
30,000 square feet of the 275,000 square foot Jacob’s Trading building.
c) Creation of a harmonious relationship of buildings and open spaces with natural site features
and with existing and future buildings having a visual relationship to the development.
Finding: Staff finds the proposed subordinate retail use will not significantly alter the
existing relationship of buildings and open space with natural site features or their visual
relationship to the development.
d) Creation of a functional and harmonious design for structures and site features, with special
attention to the following:
1.) An internal sense of order for the buildings and uses on the site and provision of a
desirable environment for occupants, visitors and the general community.
Finding: Staff finds the subordinate retail use will not impact the internal sense of order
for the buildings and uses on the site.
2.) The amount and location of open space and landscaping.
Finding: The proposed subordinate retail use does not require additional open space or
landscaping.
3.) Materials, textures, colors and details of construction as an expression of the design
concept and the compatibility of the same with the adjacent and neighboring structures
and uses.
Finding: The proposed subordinate retail use will operate completely within the existing
Jacob’s Trading building and does not require expansion of this facility. Therefore, staff
finds this standard does not apply to this application.
4.) Vehicular and pedestrian circulation, including walkways, interior drives and parking in
terms of location and number of access points to the public streets, width of interior
drives and access points, general interior circulation, separation of pedestrian and
Planning Application 2018-15-CUP
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vehicular traffic and arrangements and amount of parking.
Finding: Staff finds the site may have adequate off-street parking. The City’s off-street
parking standards require 1 stall per 200 square feet of retail, 1 stall per 250 square feet
of office and 1 stall for every 6,000 square feet of warehouse. An inventory of the
existing parking finds 56 existing stalls with considerable area for additional parking.
Based on the finding that the site appears to operate with the existing amount of parking,
staff is agreeable to this design subject to a condition of approval requiring the applicant
submit a proof of parking plan demonstrating the site can provide the required amount
of off-street parking or conduct a traffic and parking study demonstrating the site has
adequate off-street parking.
e.) Promotion of energy conservation through design, location, orientation and elevation of
structures, the use and location of glass in structures and the use of landscape materials and
site grading.
Finding: Given the proposed subordinate retail use will not alter the existing building or site,
staff finds this condition does not apply to this application.
f.) Protection of adjacent and neighboring properties through reasonable provision for surface
water drainage, sound and sight buffers, preservation of views, light and air and those
aspects of design not adequately covered by other regulations which may have substantial
effects on neighboring land uses.
Finding: The proposed subordinate retail use will not impact many of these conditions
(surface water drainage, preservation of views) and the applicant has already worked with
staff to address exterior lighting and signage issues. In addition, the use has been operating
for some time without other violations or complaints. Staff will continue to monitor the site
for these issues.
g.) The use will not be injurious to the use and enjoyment of other property in the immediate
vicinity for the purposes already permitted, nor tend to or actually diminish and impair
property values within the neighborhood.
Finding: The proposed subordinate retail use should not be injurious to the use and
enjoyment of other property in the immediate vicinity or diminish and impair property
values within the neighborhood.
h.) In Institutional zoning districts, the Conditional Use Permit application shall comply with
the standards, conditions and requirements stated in Section 542.03 of this Ordinance.
Finding: Section 542.03 provides for standards related to a conditional use that includes
demolition or removal of dwelling units and does not apply to this application.
i.) Traffic impacts such as increases in vehicular traffic, changes in traffic movements, traffic
congestion, interference with other transportation systems or pedestrian traffic, and traffic
hazards shall be considered by the Planning & Zoning Commission and City Council in
evaluating an application for a Conditional Use Permit.
Planning Application 2018-15-CUP
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Finding: See Item d.4 above and staff recommended condition of approval.
Alternatives
1. Recommend approval of the conditional use permit amendment. By recommending
approval of this conditional use permit, the City Council will consider a recommendation of
approval.
2. Recommend denial of the conditional use permit amendment. By recommending denial of
this conditional use permit, the City Council will consider a recommendation of denial. If
the Planning & Zoning Commission considers this option, findings must be identified that
support this alternative.
3. Continue for further information. If the Planning Commission indicates that further
information is needed, the item should be continued.
CITY OF HOPKINS
Hennepin County, Minnesota
PLANNING & ZONING COMMISSION RESOLUTION 2018-12
A RESOLUTION RECOMMENDING THE CITY COUNCIL APPROVE A CONDITIONAL USE
PERMIT FOR JACOB’S TRADING, LLC (DOCK 1 BARGAINS) TO OPERATE A SUBORDINATE
RETAIL USE IN AN INDUSTRIAL ZONING DISTRICT AT 8098 EXCELSIOR BOULEVARD
(PID 19-117-21-14-0006)
WHEREAS, the applicant, Jacob’s Trading, LLC, initiated a conditional use permit (CUP) application to
allow Dock 1 Bargains to operate a subordinate retail use in an Industrial zoning district at 8098 Excelsior
Boulevard;
WHEREAS, the property is legally described as follows:
THAT PART OF E 635 FT OF LOT 75 LYING SLY OF NWLY 30 FT THOF ALSO E 635 FT
OF LOT 76 EX ROAD, AUDITOR'S SUBDIVISION NO. 239 HENNEPIN COUNTY, MINNESOTA
WHEREAS, the procedural history of the application is as follows:
1. That an application to amendment the existing conditional use permit was initiated by the applicant on
November 23, 2018; and
2. That the Hopkins Planning and Zoning Commission, pursuant to published and mailed notice, held a
public hearing and reviewed such application on December 18, 2018 and all persons present were given
an opportunity to be heard; and
3. That the written comments and analysis of City staff were considered; and,
NOW, THEREFORE, BE IT RESOLVED that the Planning & Zoning Commission of the City of
Hopkins hereby recommends the City Council approve a conditional use permit allowing Jacob’s Trading, LLC
(Dock 1 Bargains) to operate a subordinate retail use in an Industrial zoning district at 8098 Excelsior Boulevard,
subject to the conditions listed below.
1. The applicant shall submit a proof of parking plan demonstrating the site can provide the required amount
of off-street parking or they may conduct a traffic and parking study demonstrating the site has adequate
off-street parking.
2. The applicant shall receive approval of all necessary building permits.
3. Conformance with the building and fire codes.
4. Conformance with all conditional use permit standards in Section 525.13, Subdivision 15, and the specific
conditions for subordinate retail uses outlined in Section 530.09, Subdivision 1.b.
5. This conditional use permit expires one year after it has been issued unless the use for which the
permit has been granted is in effect.
6. Once established, if a use granted by conditional use permit ceases to operate for six months, the
conditional use granted for that property will expire.
Adopted this 18th day of December, 2018.
_______________________
James Warden, Chair
Site Location Map – Dock 1 Bargains 8098 Excelsior Boulevard
Applicant’s Narrative
The applicant, Jacobs Trading LLC located at 8090 Excelsior Blvd, Hopkins, MN 55343 is seeking a
conditional use permit to allow us to operate a small off-price retail location in the leased warehouse
space that JTC occupies at the above address. JTC has set aside approximately 25,000 – 30,000 sq. ft. of
space for the retail location, with approximately 1/3 of that space used for assembly, set-up, pricing and
is off-limits to customers. The store, known as Dock 1 Bargains is in the south-west corner of the
building and covers 10% - 15% of the total building total building. Jacobs Trading has 275,720 sq. ft.
under lease from Ugorets Properties at this address. Dock 1 Bargains sells merchandise commonly
found in department stores, including furniture, electronics and general merchandise. Exhibit A is an
architect’s drawing of the building with Dock 1 Bargain’s space highlighted. In addition, attached are
several photographs of the parking lot to show that there is ample parking, the entry and dock door 1.
Response to item 3 written justification for request, including discussion of how any potential conflicts
with existing nearby land uses will be minimized.
The use of this space as a retail location is needed to keep our business viable in a rapidly changing
competitive environment. The merchandise that Jacobs Trading buys and sells is commonly found in
department stores and on-line sites. Certain types of merchandise such as in-door and out-door
furniture is usually sold in brick and mortar establishments, which is the only viable sales offering for this
merchandise due to costs of shipping. The merchandise that we buy, and sell is off-price merchandise,
such as customer returns, end-of-season goods, off-shore merchandise and merchandise with small
dents and blemishes. We offer these goods at significantly reduced prices. To keep the price
reasonable for buyers, we need to operate on a very small budget, which we only can do by reducing
handling and storage costs by selling from our warehouse. Buyers that are looking for great deals on
items have always put up with a little inconvenience.
We do not anticipate any conflicts with existing and nearby land uses as much of the area is already
zoned for mixed application including retail. There are no changes to the building or its adjacent
property. There is ample parking and entry and egress to the property and the building is sufficient. In
the case of any conflicts that may arise Jacobs Trading LLC is committed to hearing out the conflict and
resolving it to satisfaction. If there are any concerns or