Variance Request-525 7th Ave. S.•
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PLANNING COMMISSION
REPORT .NO. VN86 -6
BACKGROUND:
Name of Applicant:
Address of Property:
Present Zoning:
Nature of Request:
Reason for Request:
CITY OF HOPKINS
VARIANCE REQUEST - 525 -7th AVENUE SOUTH
PURPOSE: To review and recommend action on a variance request to allow a
triplex to continue.
Roberto and Peggy Hammeken
525 - 7th Avenue South
R -3
Variance for lot area per family, lot
area and minimum lot width
Bought house as a triplex and need it for
income.
The applicant is requesting a variance to allow a triplex to continue.. This
home was built as a single family dwelling and converted illegally to a tri-
plex. A 2 -4 family dwelling is permitted in an R -3 District, however, the
applicant does not have the minimum requirements to allow a triplex.
R -3 District Subject Lot
Lot area 16,000 sq.ft. 6,400 sq.ft.
Lot area per family 2,600 sq.ft. 2,133 sq.ft.
Lot width 150 ft. 50 ft.
A single family dwelling is permitted on the subject lot,
427.07 states a lot of record existing on the effective
date of this ordinance located in the R -2, R -3, R -4, R -5,
or R -6 Districts which does not meet the minimum require-
ments set forth in this Ordinance as to area and dimen-
sions for the District in which it is located, may be used
for a single family attached dwelling provided that the
width of such lot is not less than 40 feet and said lot
contains at least 5,000 square feet.
May 14, 1986
Ordinance 427.23 states that variances shall be approved only by circumstances
unique to the property under consideration would cause undue hardship to owner.
ANALYSIS: It is unfortunate that the applicant has been put in this situation,
however economic hardship is not a valid reason for granting a variance. There
is a long history on this residence as to being an illegal triplex, the Housing
Inspector has ordered the apartments in the basement to be vacated several times
in the past. Along with having several zoning violations, the subject home also
has building code violations because it is a triplex. The problem is a complex
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PLANNING REPORT NO: VN86 -2
Page 2
one, however, the City should not be put into the position of granting variances
for economic reasons.
RECOMMENDATION: I recommend denial of the variance. The following Findings of
Fact are suggested should the Commission recommend approval of a resolution deny-
ing the request:
1) Lack of hardship
Nancy. .S Anderson
Analyst Community
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TO: Planning and Zoning Committee
RE: 525 7th Ave. South {Lot 18 Block 47}
In May, 1982 we moved to Minnesota from Mexico City.
Roberto had been employed as a Marketing Manager and I was
previously employed by the American Embassy School. We had
decided that if we were ever to leave Mexico, we had to do
it at that time. We really did not anticipate that it would
be a difficult transition
We lived with my parents several months and could not find
full time employment. We both worked opposite schedules so
we wouln't have to place the girls in a day care situation.
We tried finding a place to rent, which was difficult
without job references and due to the fact that we had moved
from a foreign country We did have some money from the
sale of our previous house, so we employed a realator to
look for investment property. We placed several bids on
property and the third one resulted in the purchase of the
above property It was represented to us as a triplex and
we had no reason to doubt it- It had two furnaces, separate
meters for electricity etc. The house itself was in bad
shape but we thought that $72 000 was a good price for the
two apartments. We purchased the house in November of 1982
and moved in as soon as we finished painting, carpeting, and
wallpapering.
In March 1983, Roberto took a job as an assembler at CPT.
He received a promotion to supervisor after several months
and we felt that we would finally be able to get on our feet
financially. Well, CPT started doin g poorly,
had to take a demotion, and was then layed off a in December
1984. During this time, we were very happy that we had made
the "wise" investment of rental property, since it was what
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had sustained us during the difficult times.
Due to the prediction of a lay off, Roberto had enrolled at
Control Data Institute for a nine month intensive course in
Computer Programming. He started in December 1984. Once
again, the house was a blessing. I wouldn't have been able
to support a family of four, even though I was waitressing .
and substitute teaching. During this time we had to use
all of our savings.
During the winter while Roberto was in school, we applied
for a low interest loan through the City of Hopkins. The
house desparately needs windows {some we cannot open, in the
winter they ice up on the inside, cold drafts in the winter,
even with plastic, and the wood is rotten }, roof {it leaks },
and siding. We had also decided during this winter that we
wanted to keep the house for security and supplemental
income.
In March, Nancy Anderson called to let us know that the
inspectors would be coming out to check the house to see
what home improvements needed to be done. We had several
people come out to give us estimates on windows, before the
inspectors came out. It was not until after the inspection
was made that we found out that our house was not a triplex.
We found out that the house was really a single family home
with two apartments {not legal} in the basement. We
received an eviction letter from the city. We had no idea,
previous to applying for the low interest loan that we were
living in a building with a list of violations dating back
to 1970.
At the present time, we do have a lawyer {Ron Goldser}
representing us. We have since had an appraissel done on
the property, and were told that if we were to put it on the
market today, without making the suggested repairs, we would
have to list it between 70,000 and 72,000 which is less than
we paid for it in 1982. When we bought the property we put
10,000+ as a down payment. Since then we have recarpeted,
insulated and vented the attic, put in a driveway, bought a
new stove, refrigerator, washer and dryer, put in new floor,
new wall coverings and drapes, panelled, and put a new
ceiling in one of the apartments, just to mention a few
things.
At this time, we would like to ask for a varience, to
continue to rent the apartments, which was the reason that
we purchased this house. We are unable to maintain a good
credit standing, without the $570.00 that we receive each
month. We have never had any complaints from any of the
neighbors about our renting the units, and it has always
been public knowledge. We would really appreciate it if you
would grant us- varience.
Roberto L.
' 7(-1,1
mow, 'i ,y •c e • �c 'P
Peggy A. Hammeken
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FOR VARIANCE APPLICATION ONLY
NOTE: The purpose of a variance is to provide relief to a property owner when
the strict enforecment of the Zoning Ordinance would cause an undue hard-
ship to the property owner or deny reasonable use of the property.
Hardship to the applicant is the crucial test. Variances will be granted
only in unusual situations which were not foreseen when the Zoning Ordin-
ance was adopted. Economic situations are seldom unique and are rarely
considered a valid hardship.
Hardship A.
Explain why strict enforcement of the Zoning Ordinance would cause undue
hardship:
Ul• ptarNmaseck ''one properr � �, to '& 3Z. as G l plex. n Aori) 'fl ,,
we hor1 4+ e but kkn3 insocc Cor c,, \ow tn4-tritzV loan. A4 -hi s
4-1n19 U,.. fc u:n ..- u t tue irO e,,n \\1ces,\ trip \ex. Wc. botr.3 *-- -the
ProPer Coy- w e.ome o rd he-co AN-Ne \rwrne off- 4r t POI r4 ^
stn Ppo�'rt c,. k cA. cSovAr .
Conditions B.
What are the special conditions (shape of lot, exceptional topographic
conditions, etc.) of this request that are unique to this property and
do not apply generally to other properties in the district?
ti t s 1I- i C L L / o o , 4 6.7Z T,E* 2 Tc Z t
1:: - t(Ly
List of Homeowners
Contacted by Applicant C.
Submit a list of names and addresses of neighbors contacted.
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MARKET ANALYSIS
PREPARED FOR MR. & MRS. ROBERTO L. HAMMEKEN
PROPERTY ADDRESS: 525 7TH AVENUE SOUTH
HOPKINS, MN. 55343
DATED: APRIL 28, 1986
PREPARED BY: SHIRLEY BENGTSON
REAL ESTATE CONSULTANTS
OFFICE: 936 -0750
M.L.S. DISTRICT:
TOTAL TAX PAYABLE IN 1986:
UNPAID SPECIAL ASSESSMENTS:
UNPAID BALANCE AFTER 1986:
LOT SIZE:
BUILT:
STATISTICAL INFORMATION
PROPERTY INDENTIFICATION: (PID)
LEGAL DESCRIPTION:
25- 117 -22 13 0052
LOT 18, BLOCK 49,
WEST MINNEPOLIS
587 HOPKINS
$553.76 - HOMESTEAD
$11.70 - included in taxes
$34.52 (plus accrued interest)
50 X 128+
1962
MORTGAGE INFORMATION
FIRST MORTGAGE
FLEET MORTGAGE COMPANY #352128 -3
UNPAID BALANCE APPROXIMATELY $30,000
PI $266
CONTRACT FOR DEED
SID WILENSKY PI $300
UNPAID BALANCE APPROXIMATELY $27,000
MAIN FLOOR SQUARE FEET 884
LIVING ROOM: carpeted 1982
drapes
KITCHEN: Stove
Refrigerator
Floor 1986
Garbage disposal
BEDROOM Carpeted 1982
BEDROOM Carpeted 1982
BEDROOM Carpeted,1982
BATHROOM Full bath w /shower
TILE NEEDS SOME REPAIR
LOWER LEVEL
THE TWO
FURNISH
EXTERIOR
HOME DESCRIPTION
TWO BEDROOMS
TWO RECREACTION (LIVING) ROOMS
TWO. BATH ROOMS (WITH SEPARATE SHOWERS (2)
LAUNDRY ROOM
MASONITE SIDING
GARAGE (DETppAMMCHED DOUBLE OFF ALLEY)
BOTH /AND NEED PAINT
CONDITION
NEWER
GOOD
GOOD
NEW
GOOD
GOOD
GOOD
GOOD
FAIR
GOOD
GOOD
GOOD
GOOD
WASHER & DRYER
TWO FURNACES GOOD
1. Westinghouse
2. Gaffers - Sattler
TWO WATER HEATERS GOOD
TWO ELECTRICAL BOXES
FURNACES, WATER HEATERS AND ELECTRICAL BOXES ARE USED TOO
HEAT, WATER AND ELECTRICITY TO ONE FLOOR EACH.
FAIR
GOOD
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RECOMMENDED REPAIRS
FOR LISTING /SELLING PURPOSES AS A SINGLE FAMILY RESIDENCE
REMOVE KITCHENS IN THE LOWER LEVEL
REMOVE ONE BATH
REPAIR WALLS, FLOORS AND CEILING TO AN ACCEPTABLE CONDITION
ESTIMATE REPAIR $4,000
IN THE EVENT OWNERS PLACE THIER HOME ON THE MARKET, IT IS
RECOMMENDED THEY DO SOME ADDITIONAL COSMETIC WORK SUCH AS
INTERIOR AND EXTERIOR PAINTING IN THE ESTIMATED AMOUNT OF
$1,500.
CLOSING ,STATEMENT
ESTIMATED SALES PRICE: $ 74,000
Mortgage Balance $.30,0.00
Contract for Deed 27,000
Interest Adjustment 200
Abstract Extension 100
Special Assessments 35
Special Assessment Search 10
Recording Mortgage Satisfaction 10
Discount Points on New Financing -0-
Real Estate Commission (7 %) 5,180
State Deed Tax ($2..20 per $1,000) 163
Sub Total Expenses $ 62,698
Estimated lower level repair*
4110 Cosmetic repairs*
Total Expenses
$ 4,000
$ 1,500
$ 68,198 $ 68,1
PROCEEDS $ 5,802
NOTE: *The estimated lower level repairs and cosmetic repairs are
necessary to achieve a selling price of $74,000.
Also please note -0- discount points were used. At the
present time interest rates are low and at 9,% interest
there are no discount points. Points can vary; however,
any where from 0 to 6 in to -days market. One point is one
per cent of the mortgage amount. The seller would have to
pay ALL POINTS IN A V.A. TRANSACTION.
ESTIMATED VALUE
OF
PROPERTY AS A TRIPLEX
1. OBTAIN PROPER PERMIT (ZONING) FROM THE CITY OF HOPKINS.
2. FOLLOWING ARE PROJECTED RENTS UNDER LEGAL ZONING.
UPPER LEVEL $550.00 per month
LOWER LEVEL #1 285.00 "
LOWER LEVEL #2 285.00 "
If
TOTAL $1,120.00 " "
3. FOLLOWING ARE ESTIMATED OPERATING EXPENSES.
UTILITES $200.00 per month
TAXES 100.00 "
HOMEOWNERS INS. 30.00 "
MAINENANCE 30.00 "
TOTAL $360.00
4. USING THE ABOVE PROJECTED INCOME AND THE ESTIMATED OPERATING
EXPENSES, THE FOLLOWING IS A CALCULATION USING A GROSS RENT
MULTIPLIER OF .10% TO ARRIVE AT AN ESTIMATED SALES PRICE.
$1,120.00
- 360.00
$ 760.00 X 12 months = $ 9,120.00
.10
ESTIMATED SALES PRICE $91,200.00