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VII. 1. Legal TrainingMEMO To: Planning & Zoning Commission From: Jason Lindahl, AICP Date: August 25, 2020 Subject: Legal Training Mary Tietjen, attorney with Kennedy and Graven, will present the attached information to the Planning & Zoning Commission as part of our legal training session. She will also discuss the specific duties of the Commission and its role in assisting the City Council with development decisions. Please review the attached information and bring your questions and comments to tonight’s meeting. Attachment: Zoning and Planning 101: Introduction to Basic Principles Legal Training PowerPoint 486097v2 MDT HP145-9 1 ZONING AND PLANNING 101: INTRODUCTION TO BASIC PRINCIPLES Hopkins Planning Commission David T. Anderson, Attorney, Kennedy & Graven, Chartered I. Authority of Cities to Zone Property: Where Does It Come From? A. Constitutional Basis – Euclid v. Ambler Realty Co., 272 U.S. 365 (1926). The United States Supreme Court held in Euclid that government could lawfully adopt zoning regulations that restrict the use of property. The validity of such regulations is based upon the police power of the government, if it is used for the public welfare. B. Statutory Basis. Minnesota cities are authorized to plan and adopt zoning regulations and charge fees pursuant to the Municipal Planning Statute, Minnesota Statutes Chapter 462. Three planning tools that the statute gives to cities are: 1. The authority to adopt comprehensive plans. Section 462.355 of Minnesota Statutes requires cities to adopt a comprehensive plan. The comprehensive plan “represents the planning agency’s recommendation for the future development of the community.” Minn. Stat. § 462.352, subd. 5. 2. The authority to zone property. Minnesota Statutes Section 462.357, subdivision 1 grants the city the authority to adopt zoning ordinances. It specifies the subjects that can be regulated to promote the public health, safety, and welfare, which include: “ . . . the location, height, bulk, type of foundation, number of stories, size of buildings and other structures, the percentage of lot which may be occupied, the size of yards and other open spaces, the density and distribution of population, the uses of buildings and structures for trade, industry, residence, recreation, public activities, or other purposes, and the uses of land for trade, industry, residence, recreation, agriculture, forestry, soil conservation, water supply conservation, conservation of shorelands, … access to direct sunlight for solar systems …, flood control or other purposes…” 486097v2 MDT HP145-9 2 3. The authority to adopt subdivision regulations. Minnesota Statutes Section 462.358 grants cities the authority to enact subdivision regulations. C. Ordinances: Implementation of the Authority to Zone Through the adoption of ordinances, the city implements its authority to plan and zone, consistent with the constitutional and statutory requirements. II. Planning Commission A. Organization and form. Section 325 of the Hopkins City Code establishes a planning commission which consists of up to seven members appointed by the city council. The commission is advisory to the city council on most matters, but when acting as the board of appeals and adjustments, the commission’s decisions are final unless appealed to the city council. The city’s community development staff provides staff services to the planning commission. B. Duties. The planning commission must perform the duties required of planning agencies under state law and as specified in city ordinances. Those duties include: - To prepare and update the comprehensive plan for city council consideration; to periodically review the plan and recommend amendments when necessary. Minn. Stat. § 462.355, subd. 1. - To conduct at least one public hearing on the comprehensive plan or any amendment thereof. Minn. Stat. § 462.355, subd. 2. - To study and recommend to the city council reasonable and practicable means for implementing the comprehensive plan, such as the adoption of zoning ordinances, subdivision ordinances, capital improvement programs, etc. Minn. Stat. § 462.356, subd. 1. - To review proposals for the acquisition, disposal or capital improvement of publicly owned land and report findings to the council concerning conformance to the comprehensive plan. Minn. Stat. § 462.356, subd. 2. - To conduct public hearings on proposed zoning ordinances or amendments thereto. Minn. Stat. § 462.357, subd. 3. - To make recommendations to the city council regarding proposed zoning ordinances (upon instruction by the city council). Minn. Stat. § 462.357, subd. 4. - To serve as the board of appeals and adjustments, including deciding appeals from decisions made by an administrative officer. City Code §§ 325, 525.15; Minn. Stat. § 462.375, subd. 6. 486097v2 MDT HP145-9 3 - To hear and make recommendations for variances as the board of appeals and adjustments. Minn. Stat. § 462.357, subd. 6 (2); City Code § 525.07. - To conduct hearings on conditional use permit applications and interim use permit applications and make recommendations to the city council. Minn. Stat. § 462.3595; City Code §§ 525.13, 525.14. - To hold public hearings on and recommend action on site plans. City Code § 526. - To prepare and recommend official maps to the city council. Minn. Stat. § 462.359, subd. 2. - To hold public hearings on proposed plats and make recommendations to the city council. Minn. Stat. § 462.358, subd. 3b; City Code § 500.09. C. Information to be relied upon. In performing the above duties, the planning commission must rely upon and make its decisions in accordance with the city’s comprehensive plan, state statutes and the city’s current zoning and subdivision ordinances. The planning commission is not authorized by state law or the city code to be able to make new policy in order to arrive at its decisions. III. The Comprehensive Plan A. What it is and how the city adopts it. The comprehensive plan is a “compilation of policy statements, goals, standards, and maps for guiding the physical, social and economic development, both private and public, of the municipality …” Minn. Stat. 462.352, subd. 5. It includes several elements, including a land use plan, transportation plan, and community facilities plan. In the metropolitan area, the comprehensive plan must provide guidelines for the timing and sequence of the adoption of official controls to ensure “planned, orderly, and staged development and redevelopment consistent with the comprehensive plan.” Minn. Stat. 473.858, subd. 1. B. Process for adopting and amending the comprehensive plan. 1. Plan preparation. Typically, the planning commission, with the assistance of staff, prepares the comprehensive plan. The city council, however, may propose a comprehensive plan or amendments to the comprehensive plan by resolution. 2. Public hearing(s). The planning commission must hold at least one public hearing on the plan or any amendment to the plan before adopting the plan or any section or amendment of the plan. The notice of the public hearing must be published once in the official newspaper at least 10 days prior to the hearing. 486097v2 MDT HP145-9 4 3. Metropolitan Council Review. In the metropolitan area, cities must submit their proposed plans to the Metropolitan Council following approval of the planning commission and after consideration but before final adoption of the plan by the city council. The Metropolitan Council reviews the plan for consistency with metropolitan system statements. Metropolitan cities’ comprehensive plans must be consistent with the metropolitan system statements. 4. Adoption. To adopt the comprehensive plan or amendments to the plan, the city council must approve the plan or amendment by a two-thirds majority vote. The council cannot adopt the plan or amendments until it has received the planning commission’s recommendation or until at least 60 days have passed from the date that the city council proposed an amendment to the planning commission. C. Effect of the comprehensive plan. The comprehensive plan is the policy statement for the future development of the city. In the metropolitan area, however, cities are required to take steps to ensure that their official controls (subdivision ordinances, zoning ordinances, capital improvement programs, etc.) do not conflict with the comprehensive plan. If inconsistencies exist, cities must either amend the plan or amend their official controls to remove the inconsistencies. Metropolitan cities may not adopt any fiscal device or official control that is in conflict with their comprehensive plans or that permit activity in conflict with metropolitan system plans. IV. Judicial Review of Zoning Decisions A. General: Courts review cities’ zoning decisions to determine whether they are reasonable under the facts and circumstances. A zoning decision will not be overturned if there is a reasonable basis for the decision. Courts will overturn decisions that are arbitrary or capricious – based on “whim or caprice.” B. Zoning and Rezoning: 1. Zoning and rezoning is a legislative act. - The City is formulating public policy. - Courts give cities greater latitude in this area. 2. Zoning decisions by a city must be upheld unless it can be shown that the classification is not supported by any rational basis relating to promoting public health, safety, or welfare, or that it amounts to a taking of the property without just compensation. 486097v2 MDT HP145-9 5 3. It is insufficient for a property owner to show only that the property has been devalued through a zoning change, or that the property would be more valuable in another classification. 4. If a proposed rezoning conforms to the comprehensive plan, denial will be considered arbitrary, unless reasons are articulated to show that the proposed rezoning did not conform to the plan in all respects (e.g., timing is premature) or circumstances have changed so that the comprehensive plan no longer reflects the City’s vision and the plan requires amendment. V. Conditional or Interim Use Permits and Variances. A. Quasi-Judicial Zoning Act – The city applies the ordinance standards to a particular use. B. Conditional Use Permits – Standard is governed by the ordinance criteria, as public policy is established by it. 1. Follow ordinance criteria – public health, safety, and welfare are assumed to be incorporated in the ordinance. 2. Examine the facts to see that there is compliance with the ordinance. If the ordinance is satisfied, or can be complied with by the imposition of conditions, the permit should be issued. 3. When a zoning ordinance expressly authorizes a proposed use by conditional use permit, denial must be for reasons relating to public health, safety, and general welfare, using the ordinance criteria as a guide. C. Interim Use Permits – Standard is governed by the ordinance criteria, as public policy is established by it. 1. The city may grant an interim use permit if the interim use conforms to the city’s zoning ordinances, there is an identifiable termination date or event and the user agrees to conditions deemed appropriate by the city. 2. There should be a time limitation placed on the interim use permit. It should cease on a date certain, upon the occurrence of a specific event or until zoning regulations no longer permit it. D. Variances. The standard for granting or denying a variance is governed by the criteria set forth in state statute and the ordinance. 1. Variances, by definition, are the exception to the rule. If you find that you are often granting variances from a particular zoning provision, you might 486097v2 MDT HP145-9 6 consider re-examining the usefulness of the rule rather than granting multiple variances. 2. The standard for granting variances changed as the result of legislation passed in 2011. Owners are no longer required to show “undue hardship” but must show there are “practical difficulties” in complying with the zoning ordinance. “Practical difficulties” means the owner proposes to use the property in a reasonable manner that is not permitted by the ordinance; the owner’s plight is due to circumstances unique to the property and not caused by the owner; and the variance, if granted, will not alter the essential character of the locality. The variance must be in harmony with the general purposes and intent of the ordinance and must be consistent with the comprehensive plan. Economic considerations alone do not constitute a practical difficulty. Conditions may be imposed on variances, but the conditions must be directly related to and bear a rough proportionality to the impact created by the variance. VI. Procedure before Planning Commission and Council A. Not only are the planning commission’s proceedings reviewed by the city council and used in making its decision on an application, but they are also relied upon by a court in legal action against the city. B. While new evidence can be submitted at trial, additional evidence can be offered only where there is good cause why the evidence was not submitted to the city. C. Cases require both the city and landowner or developer to “lay their cards on the table” so the city can make a decision with all information available. - If additional time is needed to respond to issues raised, table the matter to allow for the presentation of all of the evidence, whether this is from the city, the landowner, the developer, or opponents of an application. Caveat: remember that you must comply with the 60-day law. D. The procedure requires that the planning commission and the city council be thoroughly prepared for the hearing on the request. 1. Allow all parties to fully present information. 2. Thoroughly study and review the city staff reports. 3. Actively participate in the discussion. 4. Know and state the reasons for granting or denying the request. 486097v2 MDT HP145-9 7 5. Articulate the reasons for a decision (each commissioner should articulate his or her specific reasons for voting the way that he or she voted (even if the reasons are similar)). This is not only helpful to a court, but also helps the city council understand the issues that the planning commission reviewed and how it arrived at its decision. E. What not to do at the hearing on the request. 1. Do not make off the cuff comments that could damage the city’s position. 2. Do not shoot from the hip in stating reasons for denial. 3. Do not make a quick decision if new evidence comes out at the hearing. The matter can be tabled to prepare a thorough response to new matters raised by the applicant or the parties opposing the application, subject to compliance with the 60-day law, of course. F. Do not pre-judge applications or demonstrate bias on quasi-judicial matters. In a recent decision, the Minnesota Court of Appeals determined that the City of Minneapolis had acted arbitrarily and capriciously in denying applications for a conditional use permit and variances, where one of the council members had “exhibited a closed mind” and “adopted an advocacy role in opposition to the project” before the application had even been heard. The court required the City to conduct new hearings and to render a decision without the participation of the biased council member. G. Voting. 1. If a tie vote occurs and the decision is one where the planning commission is acting in an advisory capacity (i.e. providing recommendations on proposed plats, concept plans, conditional use permits, zoning ordinance amendments, etc.), the item may proceed to the city council. The city council should be advised that a tie vote occurred. 2. If a tie vote occurs and the decision is one where the planning commission is acting as the board of appeals and adjustments, or is reviewing a site plan, the motion fails. In this case, the commission chair should first inquire as to whether there are any other motions to be offered. If no other motions are made, the chair should declare that the application is denied (a failure to gain enough votes in favor of an application constitutes a denial). 486097v2 MDT HP145-9 8 VII. Commonly Heard Arguments. A. “The decision being made will reduce the value of my property and result in a taking.” Thumbnail sketch of takings law. A regulation adopted by a state or political subdivision constitutes a “regulatory taking” in two situations: 1. A categorical taking occurs if the regulation destroys the entire value of the property. In such a case, the city must compensate the property owner. 2. In those instances where a regulation diminishes, but does not destroy, the value of property, a taking can still occur based on the facts and circumstances of each case. In making this type of determination, courts look at such things as: (a) the nature of the regulation; (b) the extent to which the regulation impacts the value of the property; and (c) the legitimate investment-backed expectations of the property owner. B. “If you make this decision you will be setting a ‘precedent.’” It is important to treat similarly situated properties similarly. In most instances, differences exist between zoning applications that may justify different treatment. Courts also recognize that circumstances change with the passage of time, and time alone may be a sufficient basis (from a legal perspective) to distinguish two different applications. As a practical matter, it is important to articulate reasons and the factual basis for making zoning decisions, so that distinguishing facts are identified in the planning commission and city council records. VIII. The 60-Day Rule A. Decisions subject to the 60-day rule. The 60-day rule applies to written requests for a permit, license or other government approval related to zoning, septic systems, or the expansion of the Metropolitan Urban Service Area. This means it applies to requests for rezoning, conditional use permits, interim use permits, variances, and probably comprehensive plan amendments. It does not apply to subdivision approvals, which have their own specific time limits. B. Starting the Clock. The 60 days do not begin to run until a completed application is received. However, the law deems any application to be complete (at least for purposes of starting the clock) unless the city within 15 business days after receipt notifies the applicant that the application is not complete and specifies what information is missing. C. Extensions of the 60-day Period. 1. The 60 days is automatically extended if a state or federal law or a court order requires a process to occur before the city acts on the request. 486097v2 MDT HP145-9 9 (example: in cases where an environmental assessment worksheet (EAW) or environmental impact statement (EIS) is required). In that case, the deadline is extended until 60 days after the process is completed. (e.g., 60 days after a determination that an EIS is adequate). Similarly, the time limit is extended if the application requires prior approval of a state or federal agency; the deadline is then extended to 60 days after the required prior approval is given. 2. The city can extend the deadline for an additional 60 days by giving written notice to the applicant before the initial 60-day period expires. The written notice must give a reason for the extension and the length of the extension. There is some inconsistency in the court decisions as to what type of reason will justify an extension: one court decision indicated any reason is sufficient, and another indicated that only exigent circumstances warrant an extension. 3. The city can extend the deadline for more than an additional 60 days, if the applicant agrees. It is preferable, but not required, to get the applicant’s consent to such an extension in writing. D. Effect of Missing the Deadline. An application that is subject to the 60-day law is automatically approved unless the city approves or denies the application within the 60-day period or extended period. If the application is denied, the city must state the reasons for denial on the record and provide the applicant with a written statement of the reasons for denial before the 60-day period expires. The written statement must be adopted at the same meeting where the decision is made or at the next meeting, but before applicable period expires. Resolutions with written findings should be used on applications subject to the 60-day law. E. Planning Commission and Council Action. Both the planning commission and the city council must act on an application within the 60-day period. The clock does not start over after the planning commission. This includes variances and appeals from variance decisions. IX. Open Meeting Law. A. In General. The Open Meeting Law (OML) requires that meetings involving a quorum of the planning commission (i.e. three or more) must be open to the public. The OML applies to the planning commission and also to the city council and to any other commission, subcommittee, board, department or committee of the city. B. Meeting. A “meeting” is a gathering of a majority of the members of the body at which official business is discussed. It is not necessary that action be taken for a gathering to constitute a “meeting.” A meeting does not include chance or social gatherings as long as public business is not discussed. As a practical matter, it is 486097v2 MDT HP145-9 10 best to simply avoid discussing city business with other members of the planning commission outside of a commission meeting. C. Notice. A schedule of the regular meetings of the planning commission must be kept on file at city hall. If the planning commission decides to hold a regular meeting at a time or place different from the time or place stated in its schedule of regular meetings, it must give notice for a special meeting. Notice of special meetings must be posted at least three days before the meeting and must include the date, time, place, and purpose of the meeting. For an emergency meeting, no notice is required but good faith efforts to notify the news media and other parties requesting notice must be made. D. Votes. Votes of the members of the commission on an action taken in a meeting required by the OML to be open to the public must be recorded in a journal kept for that purpose. E. Access to Meeting Materials. The public must have access to all materials provided to the planning commission before, during or after the meeting and pertaining to the items on the agenda. This does not include materials classified as not-public by law. F. Violations. Intentional violations of the OML may subject an individual to personal liability in the form of a civil penalty up to $300. If a person has been found to have intentionally violated the OML three or more times involving the same governing body, that person forfeits any further right to serve on the governing body or in any other capacity with the public body for a period of time equal to the term of office such person was then serving. G. Use of E-mail. With respect to the OML, e-mail is fundamentally no different from any other form of communication. Care must be exercised, however, to be sure that a quorum or more of the planning commission does not use e-mail to communicate with each other outside of a meeting. If a member of the planning commission wishes to share information with other members, he or she should do so through a member of the city’s community development staff. If a planning commission member receives an email from any source related to city business and distributed to multiple planning commission members, he or she should reply only to the sender. The reply should not be copied to all on the original distribution or forwarded to any planning commission member. If the planning commission member wishes that other commission members see the communication, it should be forwarded to the community development staff for distribution to other members. Planning Commission Training Hopkins Planning Commission August 25, 2020 Presented by: Mary D. Tietjen, Attorney Kennedy & Graven, Chartered Sources of the City’s Zoning Powers Federal and state constitutions: Regulation of land use is a valid police power of the City, as long as it is not used arbitrarily State statutes give the City the authority to adopt comprehensive plans, zone property, adopt subdivision regulations, and approve variances City ordinances implement zoning and must not conflict with state statutes Duties of the Planning Commission Advisory to the City Council on most matters Review and make recommendations to the City Council on: o The comprehensive plan o Zoning and subdivision ordinances o Conditional use permits and interim use permits o Official maps o Proposed subdivisions (plats) o Site plans o Variances Act as the City’s Board of Appeals and Adjustments Information to be Relied Upon The Planning Commission must rely upon and make its decisions and recommendations in accordance with the City’s Comprehensive Plan, state statutes and the City’s zoning and subdivision ordinances The Planning Commission is not authorized by state law or the City Code to be able to make new policy to arrive at its decisions and recommendations Types of Review & Decisions Quasi-Judicial ºCommission must follow strict legal standards ºDoes application meet requirements of the ordinance? ºExamples –conditional use permits, subdivision applications, variances Legislative ºCommission has broader discretion ºCommission may consider policy issues ºExamples –comprehensive plan, zoning ordinance text amendments The Comprehensive Plan The comprehensive plan is a policy statement for the future development of the City City ordinances should not conflict with the comprehensive plan Inconsistencies must be corrected Periodic review of the comprehensive plan is required Court Review of Land Use Decisions General rule:a land use decision by the City will be upheld by a court if it is found to be reasonable under the circumstances Court Review of Land Use Decisions Comprehensive Plans & Zoning: These items are policy documents so decisions are considered to be legislative Courts give greater discretion to the City on these types of decisions The City’s decision will be upheld by the court unless it is found to be arbitrary or contrary to law Court Review of Land Use Decisions Conditional and interim use permits, variances, site plans, and plats: The City’s decisions implement the policies expressed in ordinances; quasi-judicial, not legislative Courts give less deference to the City Courts look at the standards set out in the City’s ordinance; if the application satisfies the criteria in the ordinance, it must be approved; important to know ordinance requirements CUP/IUP should be approved if ordinance can be satisfied with imposition of reasonable conditions Court Review of Land Use Decisions Variances: Must show that there are “practical difficulties,” meaning that -the owner proposes to use the property in a reasonable manner that is not permitted by the ordinance; -the owner’s plight is due to circumstances unique to the property and not caused by the owner; and -the variance, if granted, will not alter the essential character of the locality Economic considerations alone do not constitute a “practical difficulty” Allowed for deviations from dimensional standards, but may not permit a prohibited use Public Hearings and Decision- Making The court’s review of the City’s decision may be restricted to the evidence that was presented before the Planning Commission and the City Council In making its decision, the City Council also relies upon the evidence that was presented before the Planning Commission and the Planning Commission’s analysis of the issues Therefore, it is important to follow these guidelines when considering an application: –Allow all parties to fully present information –Thoroughly study and review staff reports –Actively participate in the discussion –Know and state the reasons for the recommendation or the decision –Written findings of fact are required, both for court review and by the 60-day law –Neighborhood opposition alone is an insufficient reason to deny a request, but evidence from neighbors may be considered Voting If a tie vote occurs and the decision is one where the Planning Commission is acting in an advisory capacity, the item may proceed to the City Council with a tie vote. If a tie vote occurs and the decision is one where the Planning Commission is acting as the Board of Appeals and Adjustments or is reviewing a site plan, the motion fails. -The Chair should then inquire as to whether there are any other motions to be made -If no other motions are made, the Chair should declare that the application is denied. Commonly Heard Arguments “The decision being made will reduce the value of my property and result in a taking.” “If you make this decision you will be setting a ‘precedent.’” 60-Day Rule The City has 60 days to review applications related to zoning (includes zoning, CUPs, site plans, and variances, but not plats) The City can extend the deadline up to a maximum of an additional 60 days The City can extend the deadline for more than 60 days if the applicant agrees to the extension Applications that are not finally approved or denied within the time period are automatically approved Written reasons are required for any denial Open Meeting Law Meetings of the Planning Commission must be open to the public A meeting occurs when a quorum or more meets to discuss Planning Commission business, even if no decision is made E-mail discussions can be considered meetings -if a quorum or more of the Commission participates, it would violate the open meeting law Penalties include loss of office, monetary penalties and possible attorneys’ fees awards