100593 Planning2.
3.
3.1
3.2
4.1
4.2
5.
5.1
6.
6.1
6.2
6.3
7.
8.
AGENDA
PLANNING COMMISSION MEETING OF OCTOBER 5, 1993
CITY OF NEW HOPE, MINNESOTA
7:00 p.m.
Request for Variance to 35-Foot Rear Yard Setback Requirement, 7608
48th Circle North, Kuo Moy, Petitioner
Case 93-30 Request for Variance to Sign Area Requirement, 7112 Bass Lake Road,
Metromedia Stealdaouses (Ponderosa), Petitioner
COMMITTEE REPORTS
Report of Design and Review Committee
Report of Codes and Standards Committee
OLD BUSINESS
Miscellaneous Issues
NEW BUSINESS
Approval of Planning Commission Minutes of September 7, 1993
Review of City Council Minutes of August 23 and September 13, 1993
EDA Minutes of August 9, 1993
ANNOUNCEMENTS
ADJOURNMENT
CALL TO ORDER
ROLL CALL
PUBLIC HEARINGS
Case 93-29
Planning Case:
Request:
Location:
PID No:
Zoning:
Petitioner:
Report Date:
Meeting Date:
o
o
CITY OF NEW HOPE
PLANNING CASE REPORT
93-29
Request for Variance to 35-Foot Rear Yard Setback Requirement
7608 48th Circle North
08-118-21-32-0071
R-1
Kuo Moy
October 1, 1993
October 5, 1993
BACKGROUND
The petitioner is requesting a 10-foot variance to the 35-foot rear yard setback requirement
to allow construction of a 12' x 12' 3-season porch on top of deck, pursuant to Section
4.034(3) of the New Hope Code.
The petitioner is proposing to construct a 12' x 12' (144 square feet) 3-season porch on top
of an existing, recently reconstructed deck. The porch would be located 25 feet from the rear
yard property line on the north side of the home, therefore a ten (10) foot variance from the
35-foot rear yard setback requirement is needed.
The City Code allows open porches and decks as encroachments on yard setback requirements,
however, porches and outdoor living rooms which become enclosed in and attached to the
dwelling subsequent to initial construction of the principal dwelling are not exempt from
yard setback requirements. The elevated deck is in compliance and requires no variance.
The applicant states that after 15 years the original deck rotted out and they replaced it. They
would now like to enjoy their investment by screening in a portion of the deck.
Note from the plans that the porch will only enclose a portion of the deck. The existing deck
is 15' x 23' and the porch is only 12' x 12'.
The property is located on the north side of 48th Circle and is surrounded by R-1 single family
residential homes.
The existing structure meets all setback requirements and the cul-de-sac lot contains 10,400
square feet.
The topography of the property has a mild slope from the center of the home down to the
street, with a large tree in the front and a cluster of trees to the rear (north).
Property owners within 350' of the request have been notified and staff have received no
comments on the request.
ANALYSIS
The purpose of a variance is to permit relief from strict application of the zoning code where
undue hardships prevent reasonable use of property and where circumstances are unique to the
property. A hardship may exist by reason of narrowness, shallowness, or shape of property
or because of exceptional topographic or water conditions. The hardship cannot be created
by the property owner and if the variance is granted, it should not alter the essential character
of the neighborhood or unreasonably diminish or impair property values in the neighborhood.
Planning Case Report 93-29
October 5, 1993
Page -2-
2. "Undue hardship" as used in connection with the granting of a variance means the property
in question cannot be put to a reasonable use if used under conditions allowed by the official
controls, the plight of the landowner is due to circumstances unique to his property not
created by the landowner, and the variance, if granted, will not alter the essential character
of the locality. Economic considerations alone shall not constitute an undue hardship if
reasonable use for the property exists under the terms of the ordinance.
3. Additional criteria to be used in considering requests for a variance includes the following and
the Planning Commission/City Council shall make findings that the proposed action will not:
A. Consistent With Purpose of Variance. Be contrary to the purposes of a variance.
B. Light and Air. Impair an adequate supply of light and air to adjacent property.
C. Street Connections. UnreaSonably increase the congestion in the public street.
D. Public Safety. Increase the danger of fire or endanger the public safety.
E. Property Values. Unreasonably diminish or impair established property values within
the neighborhood, or in any other way be contrary to intent of City Code.
4. This is a cul-de-sac lot with the typical irregular shape that required the home to be
constructed near the north lot line in order to comply with the front yard setback requirement.
The house design was built with the garage on the left to preserve the trees in the front yard.
5. Staff finds that this is a modest addition and is reasonable. The existing home was constructed
in 1978 and a 16' x 23' addition was constructed on the southeast comer of the front of the
home in about 1989. The rear yard is the only reasonable location for expansion on this lot.
6. The porch addition will have little impact on neighboring properties, as the most impacted
home directly to the rear (north) is located on a 300 foot deep lot with the houses being
separated by a 230 foot distance. In addition, a grove of trees between the homes provides
a good buffer. No comments have been received from the neighbors to the east or west.
7. The plans show that the porch will have a shed-type roof that will blend with the existing
house roof, and materials will be masonite siding to match the existing home. Staff have
requested detailed elevation drawings to evaluate the architectural compatibility with the
existing structure, but none have been submitted to date.
RECOMMENDATION
Staff recommends approval of the request for a 10-foot variance from the 35-foot rear yard setback
requirement to allow construction of a three-season porch, subject to the following condition:
1. Detailed porch plan elevation drawings be submitted to confirm architectural compatibility.
Attachments:
Section/Zoning/Topo Maps
Certificate of Survey
Porch Plans
Building Official Exlxibits
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Survey for:
8713 OUPONT AVENUE
~LOOMINGTON, MINN. 55420
888.2084
L. AND SURVEYORS
COLONIAL ~UILJDE~S
SITE PLAN DECLARATION
.~ ,::ERTl :Y THAT i AM THE P~OPEPTM ,
· NNER. ( R OWNERS REPRES~£;,~'i',-','!'iVE & "_
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Planning Case:
Request:
Location:
PID No:
Zoning:
Petitioner:
Report Date:
Meeting Date:
o
o
10.
CITY OF NEW:HoPE
PLANNING CASE REPORT
93-30
Request for Variance to Sign Area Requirement
7112 Bass Lake Road
05-118-21-31-0005
B-4
Metromedia Steakhouses (Ponderosa)
October 1, 1993
October 5, 1993
BACKGROUND
The petitioner is requesting a variance to the sign area requirement, pursuant to Sec~tions
3.422(1), 3.465(1), and 3.452 of the New Hope Code.
The petitioner has installed new signage on the front wall of the Ponderosa Steakhouse that
is in violation of the New Hope Sign Code and this is an after-the-fact application for a
variance form the sign ordinance to keep the signage in place.
The property owner recently painted a scenic mural on the building with new "PONDEROSA
STEAKHOUSE" lettering without applying for a sign permit. The only permit recently issued
was a building permit for interior dining room and restroom remodeling. When the Building
Official made the final inspection on July 1, 1993, no new wall signage was present.
Subsequent to the installation of the sign the Building Official sent a letter stating that the sign
must be removed or that an application for a variance should be made.
The total area of the pictorial sign is 484 square feet and the sign code limits front wall signs
for single occupancy businesses to 125 square feet, therefore a sign area variance of 359
square feet is needed if the sign is to remain in place.
The Ponderosa Steakhouse is located at the northeast intersection of Bass Lake Road and
Maryland Avenue.
The property is located in a B-3 Auto-Oriented Zoning District and is bordered on the east by
Taco Bell Restaurant (B-3 Zoning), on the west (across Maryland Avenue) by City of Crystal
commercial district, on the north by City of Crystal single family residential, and on the south
(across Bass Lake Road) by a B-2 gas station.
The Comprehensive Plan stresses preventive maintenance along the Bass Lake Road strip to
prevent deterioration and this property was zoned commercial in 1956, rezoned to Retail
Business in 1961, and rezoned to the current B-3 classification in 1979.
The topography of the property is flat and the majority of the lot is covered by building and
asphalt.
The petitioner states on the application that the request is to install a mural on the front of the
building with letters totalling 60 square feet with the remainder a graphic art. The petitioner
indicates that the mural is a corporate image.
Property owners within 350' of the request have been notified, including the City of Crystal,
and staff have received no comments on this request.
Planning Case Report 93-30
October 5, 1993
Page -2-
ANALYSIS
Section 3.422 of the Sign Code, Definitions, subsection 1, Sign, states that a sign shall be
defined as "Any writing (including letters, words, or numerals), pictorial representation
(including illustrations or decorations), emblem (including devises,symbols, or trademarks),
flag, banner, streamer, pennant, string of lights, or display designed to attract the attention
of the public, whether it be attached to a structure, painted on, or in any other manner
represented on a building or other structure or on the ground".
City staff finds that the Code definition of "sign" includes the entire 484 square foot
mural, not just the lettering, and this interpretation has been confirmed by the Planning
Consultant and City Attorney.
Section 3.465, Signs Accessory to Single Occupancy Business, subdivision 1,A, Front Wall
Maximum Signage states that "Not more than two signs shall be permitted on the front wall
of any principal building. The total area of such sign or signs shall not exceed 15 % of the
area of the front face of the principal building...provided that the total area of each sign shall
not exceed 125 square feet."
Section 3.452, Painted Wall Signs, states that "No business or advertising sign which is
painted directly upon a wall surface shall be permitted".
In regards to a variance from the ordinance, the Sign Code states that "Where there are
practical difficulties or unnecessary hardships in the way of carrying out the strict letter of the
provisions of the Sign Code, the City Council has the power to vary the requirements of the
Sign Code in harmony with the general purpose and intent hereof, so that the public health,
safety, and general welfare may be secured and substantial justice done. When considering
a variance, the City Council shall make a finding of fact and grant approval based upon the
following conditions:
A. Unique Conditions. That the conditions involved are unique to the particular parcel
of land or use involved.
B. Variation Purpose. That the purpose of the variation is not based exclusively upon
a desire to increase the value or income potential of the business involved.
C. Cause of Hardship. That the alleged difficulty or hardship is caused by this Sign
Code and has not been created by any persons presently having an interest in the
parcel.
D. Effect of Variance. That the granting of the variation will not be detrimental to the
public welfare or injurious to other land or improvements to the neighborhood.
E. Impairment of Light and Air. That the proposed variation will not impair an
adequate supply of light and air to adjacent property, or substantially increase the
congestion of the public streets, or interfere with the function of the police and fire
departments of the City.
Staff does not find that the conditions for the granting of the variance are met due to the
following:
A. Unique Conditions - staff does not find that conditions involved are unique to this
parcel of land or use, as there are many similar businesses along Bass Lake Road that
are in compliance with the sign code.
Planning Case Report 93-30
October 5, 1993
Page-3-
B. Purpose - staff finds that the sign was probably installed to increase the visibility of the
business and this conflicts with the condition that the variance should not be based
exclusively upon a desire to increase the value or income potential of the business
involved.
C. Hardship - staff finds that the hardship is not caused by the Sign Code, but instead has
been created by persons presently having an interest in the parcel.
7. The Building Official has calculated that the text portion of the sign is 70 square feet in area
and the pictorial portion of the sign is 414 square feet in area for a total sign area of 484
square feet. The sign code allows 125 square feet for wall signs, so this request is for a 287 %
increase over what is allowed by the code.
8. The Planning Consultant has prepared the enclosed Ponderosa Sign Review memo. It states
that "the sign code is very specific about regulating pictorial signs. The proposed sign takes
up almost 50% of the front wall of the building. Granting a variance to this requirement
would set a negative precedent for the City in reviewing future sign variance requests. It is
our opinion that the code should not be amended to allow this type of use, especially on such
a large scale".
9. While it could be argued that the outdoor scene shown on the pictorial could be pleasing to
some persons, staff cannot recommend approval of such a large variance request for the
reasons outlined in this report.
RECOMMENDATION
Staff recommends denial of the request for a variance to the New Hope Sign Code to allow a 484
square foot wall sign.
Attachments:
Topo/Section/Zoning Maps
Building Official Sign Calculations
Building Official Photo of Sign
Sign Plans
Planning Consultant Memo 9-30-93
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, ACTUAL LENGTH OF SECTION .PROVIDED IS LONGER THAN
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TO:
FROH:
DATE:
RE:
FILE NO:
Kirk McDonald
Cary Teague/Alan Brixius
30 September 1993
New Hope - Ponderosa Sign Review
131.01 93.30
REVIEW
Ponderosa is requesting a variance to construc=a 484 square foot
mural sign above their entrance. The following summarizes our
office's comments:
The enti=emuxal/sipn should be considered a sign. Section
3.422 (1) of =he zoning ordinance clearly defines a sign as
"Any writing..., pic.to:rial_~_ representation (including
illus:rations or decorations)..., or display designed ~o
attract the attention of the public, whether it be attached to
a structure, pain,ed on, or in any other manner represented on
a building or other structure or on the 9round." Therefore,
the entire mural is considered as par: of the sign.
Section 3.4S2 prohibi=s business or advertising signs from
being pain:ed directly on the wall surface.
The code is very specific about regulating pictorial signs,
our opinion is that the code should no= be amended to allow
this type of use, especially on such a large scale.
Roof s~ns are prohibited by Ci[y Code. Section 3.465 (4) of
~he zoning ordinance prohibits roof signs accessory to a
single occupancy business. Therefore, if the proposed sign
extends into the air space over =he roof of =he structure, the
sign is prohibited.
Fron~ wall s~gns are l~m~te4 to 15% o= 12S s~uare feet. The
proposed sign takes up almost 50% of the front wall. Granting
a variance ~o this requiremen~ would seu a negative precedenU
for the City in reviewing future sign size variance requests.
5775 Wayzata Blvd.' Suite 555. St, Louis Park, MN 55416. (612) 595.9636.Fax. 595-9~37
CITY OF NEW HOPE
DATE:
TO:
FROM:
SUBJECT:
MEMORANDUM
October 1, 1993
Planning Commission Members
Kirk McDonald, Management Assistant/Community Development Coordinator
Miscellaneous Issues
September 13th Council Meeting - At the September 13th City Council meeting the Council
approved the following planning cases, subject to the conditions as recommended by the
Planning Commission:
Bo
Planning Case 93-26, Request for Preliminary Plat Approval for Village Industrial
Park 2nd Addition, 3940 Quebec Avenue North, Bruce Paddock/Paddock Laboratories,
Petitioner
Planning Case 93-27, Request for Site/Building Plan Review Approval to Allow
Construction of a Building Addition at 9101 Science Center Drive, Avtec Finishing,
Petitioner
Planning Case 93-28, Request for Site/Building Plan Review Approval to Allow
Construction of a New Gas Pump Island Canopy at 4200 Winnetka Avenue North,
DLE, Inc./Uno-Ven Company, Petitioners. Revised landscaping plans were submitted
prior to the Council meeting (attached). Also, the condition on the 90-degree angle
parking was revised to allow for 45-degree angle parking, as staff and Council were in
agreement with the petitioner's letter regarding traffic safety submitted subsequent to
the Planning Commission meeting. The two parking stalls closest to 42nd Avenue will
still be eliminated and replaced with landscaping.
Planning Case 93-11, Request for Planned Unit Development Conditional Use Permit
to Allow Construction of a Mausoleum and Office Building and Various Site
Improvements at Gethsemane Cemetery, 8151-8161 42nd Avenue North, Catholic
Cemeteries, Archdiocese of St. Paul and Minneapolis, Petitioner. The PUD Agreement
and performance bond requirements have been completed and sent to the petitioner for
execution (enclosed).
September 27th Council Meeting - The following cases were approved by the City Council
at the September 27th Council meeting:
Planning Case 93-26, Request for Final Plat Approval for Village Industrial Park 2nd
Addition, 3940 Quebec Avenue North, Bruce Paddock/Paddock Laboratories,
Petitioner. The final plan included all corrections requested.
Planning Case 93-22, Request for Conditional Use Permit to Allow Erection of
Communication Support Structure and Antennas, 3877 Independence Avenue North,
Kirk Huber Pengelly, Jr., Petitioner. A structural analysis of the tower was SUbmitted
to the City and approved by the Building Official. Per the recommendations of the
report, the petitioner agreed to lower the total height of the tower to 50 feet. A
neighborhood petition was submitted opposing the request.
-2-
Green Area Reduction Letter - After calling on several businesses recently for the Twin West
Executive Call Program, staff became aware that many businesses/industries are still not aware
of the ordinance change this spring that reduced the I-! green area requirement from 35% to
20 % (although an article was published in the City newsletter). Therefore, a letter informing
businesses of the changes was mailed directly to all business/property owners in New Hope
during September (attached).
Home Occupation Ordinance - The Chair of the Codes & Standards Committee met with the
City Attorney, Planning Consultant, Building Official, and myself for an informational meeting
on September !5th. It was determined that we would pursue some minor revisions in the
existing code requirements and a Codes & Standards Committee meeting has been scheduled
for October 20th. ! have enclosed some of the information submitted by Bill Sonsin on this
issue and would encourage you to review it, as there are some interesting concepts. A report
by the Planning Consultant is in process.
Gasoline Canopy Regulations - Staff has also requested that the Planning Consultant initiate
a report/recommendations on an ordinance amendment to regulate gasoline canopies and that
issue will also be discussed at the October 20th meeting. As was pointed out in the recent
Uno-Ven Planning Case, the Zoning Ordinance contains regulations for canopies constructed
in conjunction with the conditional use permit process for convenience stores, but contains no
regulations for canopies for gas stations without convenience stores (which only requires site/
building plan review/approval).
Radio Towers - A New Hope resident who previously requested/received a CUP for a radio
tower is in the process of writing the City to request that a study be initiated to consider a code
change regarding the allowable heights for radio towers without requesting a CUP. He is
recommending that several local radio tower/property owners be involved in the study to
provide information/input on what regulations other cities have in effect. Pending direction
from the City Manager and Council, this may be an area for research later this year.
Currency Exchange Business - The City has requested that the Planing Consultant review and
make recommendations regarding the need for ordinance requirements to regulate currency
exchange businesses, per the enclosed memo from the Building Official.
Attachments:
Uno-Ven Plans/Letter
Cemetery PUD Agreement/Bond Letter
Paddock Final Plat
Pengelly Info
Green Ordinance Letter
Home Occupation Info
Currency Exchange Memo
COUNCIL
REQUEST FOR ACTION
Originating Department Approved for Agenda ~gen~a Section
ueve~opment
City Manager & Planning
9-13-93
Kirk McDonald Item No.
By:Management Assistant By: 8.4
PLANNING CASE 93-28 - REQUF~FOR SITE/BUILDING PLAN REVIEW APPROVAL TO
ALLOW CONSTRUCTION OF A NEW GAS ISLAND CANOPY AT 4200 WINNETKA AVENUE
NORTH, PID//17-118-21-22-0013, DLE, INC./UNO-VEN COMPANY, PETITIONERS
The petitioner is requesting site/building plan review approval to allow construction of a new gas pump
island canopy at the Unocal Station, pursuant to Section 4.039A - New Hope Code. The petitioner is
proposing to remove the existing fuel islands, replace them with three (3) new islands, and multi-product
dispensers, a new fueling canopy over the new islands, and new green area with curbing. The proposed
canopy would be approximately 120 feet in length and 28 feet in width, covering an area of
approximately 3,000 square feet, and have a total height of 17 feet (including a 3-foot ridge/cap around
the top). The existing site contains a one-story brick structure that is located diagonally in the center of
the lot and the canopy would be located on the southwest comer of the site. Staff finds that the large
angled canopy installation is routine as long as a 14' ground clearance is provided. Besides the canopy,
the site plan includes a number of other significant improvements including a new green perimeter with
landscaping around the entire parcel and perimeter curbing.
The Design & Review Committee met with the petitioner and a number of issues were discussed, which
resulted in revised plans being submitted which address the issues raised. In review of the revised plans,
staff requested several revisions/additions.
The Planning Commission reviewed this request at their September 7, 1993, meeting and recommended
approval, subject to the following conditions:
1. Parking be revised, per 8A and 8B of the staff report.
2. landscaping plan and schedule be submitted prior to Council meeting.
3. Revised illumination contour be submitted.
4. Signage limited to three (3) round 36" diameter "76" signs.
Staff recommends approval of the resolution.
Rem ew: Administration: F in a_nc e:
RFA-O01 ~
DLE
Donald I.. lg~ P~t
DLE inc., 5921 Frem~t~ueSout~, MinneaDoli$, Minnesota 55419 6!2-866-8210 612-869-1670
Doug Sendltid
City o~ Nee Hope
4401Xylon Ave. N.
New Hope ~N 55428
~E~: UNO-VEN ?G Ser¥ice Station
Mr. Slndltld:
Par the raqueat of the city we ere eubmitting · detailed
5il! ~idgawey of UNO-VEN, responsible For the design of the
service station hoe left the angled parking on the site plan
el hi Faall gO degree plrking wou~d crelta an UnllFa traffic
Flow betwlan the plrkad Clrl becking out Ind carl Fueling It
the aaltarn ~Olt ii,ind.
Per hie letter of September 9th, he will Gladly remove the
perking pllcmm clommmt to the eouthemmt mppromch ma we
mmluma the city'e concern to be perked cmro backing into the
approlch la I aacond vehicle attamptm to enter the property.
Also, mm wa diacueoad, wa here requeatad ?rom our lighting
compmny the light contour For the cmnopy which we will
Forward For your tnapact~on upon receipt.
Zt ia our intention to not only comply with your requmat For
thio information bu~ to alma comply w~th your lighting
requiremento after you have had an opportunity to review
these contoura.
mppalr~F..Gi~ ~htl-morner end we hope to get this project
complattt~Yelr'
Wa wou~~' t h~ ot~¥ to approve our site and landecaptnG
piano perhIpe ~[~h the contingency o~ ~lneltzlng the deceit-
regarding par~tng and canopy lighting.
Scott Egarer
Con~'uction * I~emoclel~ng * Malnt~'~ance · Eclu~pme~
Smc, al~z~rg. ,n Comme'aal & ~r~eum-~la~l Pmlec~
The UNO-VEN Company.
Products
Mr. Don Egerer
~5921 Fremont Avenue, S
Minneapolis, MN 55419
September 9, 1993
38,~ North W'~ke Roaci
Arlmg~m I..le~j~& IL 60004
Te.~,f~one: (708) 818-~800
Hello Don:
NEW HOPE, MINNESOTA
9280-150
Reference to the subject, we have attached per your re, est, 10
copies of the landscape drawing, a separate drawing from the
facilities drawing. We have also attached a copy of the
facilities drawing, 10 copies at your request, we have shown the
landscaping on the landscape drawing as originally submitted by the
landscape architect.
We have not revised the parking since the perpendicular parking as
requested by the City or someone at the City, would result in
unsafe traffic pattern as far as the customers were concerned.
Since parking does not seem to be a major issue here as far as
number of spaces, we have left the parking as orlginall sh
did not pull the landscapin~ into the ......... AY ow~. We
corners originally -- ..... ~-~ .... ~__ w~uww~=y on the southeast
submittal = ..,_ ~ ~3~=77=u ~wuu~ng the outcome of this latest
· -- can ~o this with no hesitation by eliminating
parking spaces 5 and 6. Good luck on your meeting with the City
and if you need any further help, don't hesitate to call.
Please advise the City that we have requested canopy lighting,
photometrics, as requested and will submit same as soon as
available.
WER/jg
FACILITIES
LAYOUT
Products
Norlh WA,,e Road
Z
Z
J
42ND AVENUE NoRTI--I
(ROCKFORD ROAD)
I IOJ Ji,~'~ Ol ()1~'[ t~A~ION
0
Z
42ND AVENUE
(ROCKFORD ROAD)
HOURS OF OPERATION
~ Products
3850 No,'th W&e Road
LANDSCAPE
PLAN
~-I.i.I:ION ~nN=IA¥
I
¥'),tJ.::IN NlM ,
- _ JLL I L..II___ !IL I . I I ............ i ................
PLANNED UNIT DEVELOPMENT AGREEMENT
AND CONDITIONAL USE PERMIT FOR
GETHSEMANE CEMETERY
Parties to A~reement. This Agreement dated the day of
, 1993 is between the City of New Hope, a
Minnesota Municipal Corporation (hereafter City) and The
Catholic Cemeteries, a Minnesota Religious Diocesan Corp.
(hereafter Developers).
Subiect Property. The Developers are the fee owners of the
following described property which is the subject of this
Agreement located in the City of New Hope, County of Hennepin,
Minnesota:
Gethsemane Cemetery
Conditional Use Permit Planned Unit Development Approval. The
Developers have asked the City to approve a Planned Unit
Development (PUD) for the subject property consisting of the
following uses: cemetery, burial, mausoleum, and office for
cemetery business and use only. The City hereby grants
conceptual approval for the property as set out in the
Gethsemane Cemetery Master Plan identified as Exhibit A, The
City also grants development approval and approves the PUD
conditional use permit for the first stage of development on
the condition that the Developers enter into this Agreement
and comply with its terms,
Development Exhibits. The Developers shall construct its
phase one improvements and phase two Xylon entrance in
accordance with the plans shown on the following exhibits. If
the exhibits vary from the written terms of this Agreement,
the written terms shall control. The exhibits are:
Exhibit A --
Exhibit 8 --
Exhibit C --
Exhibit D --
Exhibit E --
Gethsemane Cemetery Master
Development Plan (January, 1993)
Mausoleum/Office Site Plan
(revised 8-30-93)
Mausoleum/Office Grading &
Utility Plan (revised 8-30-93)
Mausoleum/Office Planting Plan
(revised 8-30-93)
Mausoleum/Office Phase 2 -
Entrance (revised 8-30-93)
Exhibit G1 -- Office Building Floor Plan &
& G2 Elevations (7-9-93)
Exhibit H1 -- Mausoleum Floor Plan &
& H2 Elevations (revised 9-15-93)
Exhibit I -- Water Main Loop (8-19-93)
Exhibit Jl -- Signage Plan (7-20-93)
& J5
Shared Ingress and Egress. The Developers further acknowledge
and agree to provide for Ingress and Egress for all uses on
the subject property and hereby expressly agree that all uses
on the subject property may utilize the curb cuts and
driveways shown on the Exhibits for this purpose.
The Work. It is contemplated by the parties that the work
will be completed in 4 phases as described in the Master
Development Plan attached as Exhibit A. The Exhibits attached
as B through J, including any approved subsequent amendments,
describe the phase one work and the phase two entrance, which
shall be performed by the Developers to the City's
satisfaction in compliance with all applicable codes,
ordinances, standards, and policies of the City. The work
includes all on-site exterior amenities as shown on the plans
including, but not limited to, landscaping, private drives,
parking areas, storm drainage systems, water mains, sanitary
sewers, hydrants, curbing, lighting, fences, fire lanes,
sidewalks, and trash disposal enclosures. The Developers
further agree that all signage on the property will comply
with exhibits Jl through J5 and the New Hope Sign Code.
Financial Guarantee. To secure performance of the phase one
work under this Contract, all other terms of this Agreement
and payment of all administrative fees require by the New Hope
City Code, the Developers shall furnish the City with a
financial guarantee in the amount of $107,000.00 before any
work is started or building permits issued. The financial
guarantee may take any of the following forms:
i)
ii)
iii)
iv)
Cash deposit at no interest;
Assigned Saving Certificate - interest to Developer;
Corporate Surety Bond;
Irrevocable Letter of Credit for term approved by
the City.
This financial guarantee may also be used by the City to pay
all of its costs, including but not limited to, legal and
engineering consulting fees, incurred by the City to enforce
this agreement.
2
Completion of Work· The Developer agrees that the phase 1
work will be completed in its entirety on or before the 1st
day of October, 1998. The phase 2 entrance shall be completed
no later than 10 years after the execution of this agreement.
No extension of time shall be valid unless the same shall be
approved in writing by the City. An extension of time shall
be valid whether approved by the City before or after the
completion date, and failure of the City to extend the time
for completion or to exercise other remedies shall not cause
a forfeiture of the City's rights hereunder, nor shall any
extension of time granted by the City cause any forfeiture of
the City's rights. It shall be the duty of the Developer to
notify the City of the completion of the work in writing and
to request a final inspection of the work by employees of the
City. It is contemplated by the parties that each phase shall
be completed in five year periods. The developers shall be
required to submit for approval additional plans for all
subsequent improvements as required by New Hope Code §§4.19
through 4.197, with the exception of the phase 2 entrance
attached hereto as Exhibit E. The financial guarantee
furnished to the City shall guarantee completion of phase 1
improvements only. Additional financial guarantees may be
required at the City's option as subsequent plans are
submitted to the City for development approval of future
phases of the project. A financial guarantee will be required
for the phase 2 entrance upon commencement by the City or
County on the 42nd Avenue/Xylon Avenue street improvement
project. These guarantees shall remain in full force and
effect after installation of the work, to determine that the
useful life of all work performed hereunder meets the average
standards for the particular industry, profession, or material
used in the completion of the work. Landscaping improvements
consisting of trees, shrubs, and other living material, shall
be considered complete for purposes of this agreement upon
determination of the City following inspection by the City
that said materials have survived one full winter season after
the actual installation of the materials. The period October
31 through April 30 shall constitute a winter season. Any
work failing to meet such standards shall not be deemed
complete hereunder.
Notice of the City's acceptance of the work shall be given the
Developers following inspection and a determination that the
work has been properly completed. Any such completion notice
shall not release the financial guarantee. The financial
guarantee may be released only upon motion of the City
Council, and shall stay in full force and effect until all
administrative costs are paid in full.
o
10.
Street Right-of-Way Dedication. The Developer agrees that
development of the property may generate additional traffic
onto 42nd Avenue North created in part by use of the new phase
1 office facility and mausoleum as well as by future
development in subsequent phases. To alleviate the potential
safety hazard created by additional traffic on 42nd Avenue it
is contemplated that Hennepin County with participation by the
City, may desire to widen 42nd Avenue and construct left turn
lanes at Xylon Avenue North. To facilitate these street
improvements, the Developer agrees to provide by permanent
easement street right-of-way over, under and across no more
than the north 17 feet of the property as shown on the 8-25-93
preliminary plan prepared by Bonestroo, Rosene, Anderlik &
Associates identified as Exhibit F. The Developer agrees to
provide approximately 12,000 square feet of permanent right-
of-way at no cost to the City or County for the left turn
lanes at Xylon Avenue North as shown on Exhibit F. If the
City and County request the approximately 10,400 additional
square feet to construct the two-way left turn lane as shown
on Exhibit F, the Developer shall receive fair market value
for the additional square footage. Fair market value shall be
determined by an appraiser mutually satisfactory to both
parties and the cost of said appraisal shall be paid equally
by the parties. Determination of the exact amount of right-
of-way needed for both or either left turn movement on 42nd
Avenue North as shown on Exhibit F shall be determined by the
New Hope City Engineer. The Developer further agrees that all
future development of the property will take into
consideration this requested right-of-way and no fencing,
monuments, landscaping or structures of any kind will be
placed or constructed within this 17 foot strip of property,
Storm Water Drainage/Wetland Delineation. The Developer also
agrees that development of the property will generate
additional storm water run-off and may possibly impact
existing wetlands on the property, Developer agrees it will
dedicate at no cost to the City two permanent easements for
storm water drainage and retention ponding, The Developer
agrees that both ponding easements will be in accordance with
the recommendations made in New Hope's Comprehensive Storm
Sewer Plan and that said Plan has not yet been completed by
the New Hope City Engineer, However, the general location of
both ponds will be as follows:
i)
Pond one shall be located directly east of the low
point in Boone Avenue opposite 4075 Bone Avenue as
shown on the Master Plan identified as Exhibit A.
4
It shall include approximately 3 acres - feet of
storage {NWL 902, HWL 906) and shall incorporate
approximately 1.6 acres of land (450' x 150').
ii)
Pond two shall be located approximately 500' south
of 42nd Avenue North and 200 feet west of Xylon
Avenue North if Xylon were extended south as shown
on the Master Plan identified as Exhibit A. The
storage capacity and dimensions of pond two will be
more fully defined by the Comprehensive Storm Sewer
Plan.
The Developer agrees that the City will construct Pond one as
part of the Developer's Phase 1 improvements, Further, the
Developer agrees to provide the City with all required
temporary construction easements upon execution of this
agreement for construction of pond one, The City agrees to
bear the cost for pipe modification in Boone Avenue required
by Pond one's construction and all restoration including
landscaping associated with the construction, The Developer
agrees it will pay all costs associated with moving 5,000
cubic yards of material to construct the pond. Said costs
will be paid within 30 days after developer receives an
itemized billing for the work from the City, Developer agrees
delinquent payments will be assessed a monthly interest fee
equal to 8% per annum. Developer further acknowledges and
agrees its payment obligation for the pond construction shall
be guaranteed by the financial guarantee required by paragraph
7, The excess material will be spread on the property in
accordance with the directions and requirements of the
Developer. All private storm sewer reconstruction done to
accommodate Phase 1 construction shall discharge directly into
the open ditch which flows westerly to Pond one,
Pond two shall be constructed in conjunction with the Phase 2
Xylon entrance improvement. The Developer shall be
responsible for all costs associated with the construction of
Pond two which Developer agrees will be constructed in
accordance with the specifications of the New Hope City
Engineer,
The Developer also agrees to provide the City with a survey of
the property that includes a delineation of all wetlands
located on the property and verified by either the appropriate
watershed district, the Army Corp. of Engineers or the
Uinnesota Board of Water and Soil Resources. Developer
11.
12.
13.
14.
acknowledges that all future development of the site must
comply with all federal regulations and Minnesota's Wetland
Conservation Act relative to all disturbances of wetlands on
the property,
Private Roadway Construction. The Developer agrees that all
private internal roads as proposed by the Master Plan and
Exhibits shall be concrete curbed and surfaced with asphalt to
match those already existing on the property.
Perimeter Fencing and Landscaping. Developer agrees that
prior to the removal and replacement of any existing perimeter
fencing and landscaping of the property detailed plans of the
improvements will be submitted to the City Planning Commission
and Council for review and approval. Further, Developer
agrees that future replacement of the existing chain-link
fencing around the property's perimeter will be with high
quality materials, that the fence setback will remain the same
along Winnetka Avenue North, but the setback along 42nd Avenue
and Boone Avenue North shall be a minimum of 10 feet measured
from the new property lines after the dedication of street
right-of-way and ponding easements provided for herein. Also,
all future landscaping plans shall show type and location of
the intended vegetation and shall be coordinated with
future fencing plans,
Internal Sidewalks. Developer agrees that any improvement to
the Winnetka entrance or construction of the Phase 2 Xylon
entrance or future Boone entrance as shown on the Master Plan
will include construction of sidewalks on one side of the
respective entrance to the first internal cross street with
the entrance under construction,
Phase 1 Conditions. The Developer agrees to the following
terms and conditions as part of the City's approval of the
site plans for the construction of the office building and
mausoleum in addition to the other terms and conditions stated
herein:
i)
The temporary office facility shall be removed
within 14 days after the issuance of an occupancy
permit for the office building;
ii)
All above ground monuments and structures shall be
set back a minimum of 30 feet from the property
lines as determined after dedication of the new
street right-of-ways and ponding easements provided
for herein;
6
iii)
iv)
At the option of the Developer, the office building
and mausoleum shall either be sprinklered with one
water hydrant or a looped water main and 2 hydrants
shall be installed in accordance with
specifications and requirements of the New Hope
Fire Chief;
Developer shall provide to the City anticipated
construction time lines for all remaining Phase 1
improvements.
15.
Remedies for Breach. The City shall give prior notice to the
Developer and a corporate surety that has provided a bond as
financial guarantee of any default before proceeding to
enforce such financial guarantee or before the City undertakes
any work for which the City will be reimbursed through the
financial guarantee. Notice shall be sent by certified mail.
If within ten (10) days after such notice to it, the Developer
or the surety has not notified the City in writing of its
intention to enforce any rights it may have under this
performance agreement or any performance bond or guarantee by
stating in writing the manner in which the default will be
cured and the time within such default will be cured, the City
will proceed with the remedy it deems appropriate.
At any time after the completion date and any extensions
thereof, if any, of the work deemed incomplete, the City may
proceed in any one or more of the following ways to enforce
the undertakings herein set forth, and to collect any and all
overhead expenses incurred by the City in connection therewith
including, but not limited to, engineering, legal, planning
and litigation expenses including court costs and reasonable
attorney's fees; but the enumeration of the remedies hereunder
shall be in addition to any other remedies available to the
City.
i)
Specific Performance. The City may in writing
direct a corporate bond surety or the Developer to
cause the work to be undertaken and completed
within a specified reasonable time. If the surety
and/or the Developer fail to cause the work to be
done and completed in a manner and time acceptable
to the City, the City may proceed in an action for
specific performance to require work to be
undertaken.
7
ii) ~
iii)
iv)
Completion by the City. The City, after notice,
may enter the premises and proceed to have the work
done either by contract, by day labor or by regular
City forces, and neither the Developer nor the
corporate surety may question the manner of doing
such work or the letting of any such contracts.
Upon completion of such work, the surety and/or the
Developer shall promptly pay the City the full cost
thereof as aforesaid. In the event that the
financial guarantee is in the form of a performance
bond, it shall be no defense by the surety that the
City has not first made demand upon the Developer,
nor pursued its rights against the Developer.
Deposit of Financial Guarantee. In the event that
the financial guarantee has been submitted in the
form of a performance bond, the City may demand
that the surety deposit with the City a sum equal
to the City's estimated cost of completing the
work, plus the City's estimated overhead expenses
as defined herein, including any other costs and
damages for which the surety may be liable
hereunder, but not exceeding the amount set forth
on the face of the performance bond which money
shall be deemed to be held by the City for the
purpose of reimbursing the City for any costs
incurred in completing the work as herein before
specified, and the balance shall be returned to the
surety. The money shall be deposited with the City
within ten (10) days after written demand therefor,
and if the surety fails to make the required
deposit within ten days, the City shall have the
right to proceed against the surety with whatever
legal action is required to obtain the deposit of
such sum.
Funds of Deposit. In the event that the financial
guarantee is in the form of cash, certified check,
irrevocable letter of credit, or other arrangement
making the financial guarantee immediately
accessible to the City, the City may, after notice
to the Developer, deposit the financial guarantee
in its general account. The City may then proceed
to complete the work, reimburse itself for the cost
of completion as defined hereunder, and return the
balance to the Developer.
8
16. Miscellaneous.
i)
This Agreement shall be binding upon the parties,
their heirs, successors or assigns, as the case may
be.
ii)
Breach of the terms of this Agreement by the
Developer shall be grounds for denial of building
permits.
iii)
If any portion, section, subsection, sentence,
clause, paragraph or phrase of this Agreement is
for any reason held invalid, such decision shall
not affect the validity of the remaining portion of
this Agreement.
iv)
The action or inaction of the City shall not
constitute a waiver or amendment to the provisions
of this Agreement. To be binding, amendments or
waivers shall be in writing, signed by the parties
and approved by written resolution of the City
Council. The City's failure to promptly take legal
action to enforce this Agreement shall not be a
waiver or release.
v)
Developer agrees to reimburse the City for the
actual costs to the City associated with Planning
Casse 93-11 and this Agreement, including but not
limited to, engineering and attorney's fees.
Developer agrees that the financial guarantee shall
not be released until all such costs have been paid
to the City.
vi)
The Developer agrees to reimburse the City for all
costs incurred by the City in the enforcement of
this Agreement, or any portion thereof, including
court costs and reasonable engineering and
attorney's fees.
17.
Notices. Required notices to the Developer shall be in
writing, and shall be either hand delivered to the Developer
by certified or registered mail at the following address:
Executive Director, Catholic Cemeteries, 244 Dayton Avenue,
St. Paul, MN 55102. Notices to the City shall be in writing
and shall be either hand delivered to the City Clerk, or
mailed to the City by certified mail or registered mail in
care of the City Clerk at the following address: 4401 Xylon
Avenue North, New Hope, Minnesota 55428, Attention: City
Clerk.
9
Dated:
Dated:
DEVELOPERS
By
Its
By
Its
CITY OF NEW HOPE
By
Its Mayor
By
Its City Manager
STATE OF MINNESOTA )
) SS.
COUNTY OF HENNEPIN )
On this day of , 199__, before me
personally appeared Edw. J. Erickson and Daniel J. Donahue, to me
known to be the persons described in the foregoing instrument and
who did say they are respectively the Mayor and City Manager of the
municipal corporation named therein and that the seal affixed to
said instrument is the corporate seal of said municipal
corporation, and that said instrument was signed and sealed in
behalf of said municipal corporation by authority of its City
Council and said Edw. J. Erickson and Daniel J. Donahue
acknowledged said instrument to be the free act and deed of said
municipal corporation.
Notary Public
10
STATE OF MINNESOTA )
SS.
COUNTY OF HENNEPIN )
On this day of 199 , before me
persona]lyappeared ' and
to me known to be the
persons described in the foregoing instrument and who did say that
they are respectiYe]y the and
of the corporation named therein,
and that said instrument was signed on behalf of said corporation
by authority of its Board of Directors and they did further attest
said instrument to be the free act and deed of said corporation,
Notary Public
c:\wp51\cnh\pud.g-f
11
UUUNCIL
· R.EQ~? FOR ACTION
Originating Department Approved for Agenda
City Manager & Planning
;-27-93
Kirk McDonald Item No.
By: Management Assistant By: 8.2
PLANNING CASE 93-26 - REQUEST FOR FI/NAL PLAT APPROVAL FOR VILLAGE INDUSTRIAL
PARK 2ND ADDITION, 3940 QUEBEC AVENUE NORTH (PID #17-118-21-32-0005), BRUCE
PADDOCK/PADDOCK LABORATORIES, PETITIONER
The petitioner is requesting Final Plat approval of Village Industrial Park 2nd .Addition, pursuant to
Chapter 13 of the New Hope Code. The purpose of the plat is to change the current legal description
of the property where Paddock Laboratories is constructing their new facility from "Outlot A" Village
Industrial Park", to "Lot 1, Block, Village Industrial Park 2nd Addition".
Earlier this year the Planning Commission and City Council approved Planning Case 93-15, Request for
Variance to Rear Yard Setback Requirement and Site/Building Plan Review/Approval for construction
of a new 75,750 square foot office/warehouse building on vacant property at 3940 Quebec Avenue North.
The staff report for the Site/Building Review stated that the existing plat identified this property as Outlot
A and the Zoning Code does not permit building construction on an outlot. Therefore, staff
recommended that the plat be administratively revised from Outlot A to Lot 2, and the planning case was
approved subject to that condition. It is now the petitioner's and City's viewpoint that the proper
procedure to follow is to replat the property through the public hearing process rather than to revise it
administratively. The plat subdivides the property into one parcel, Lot 1, Block 1, which contains
327,555 square feet, and the proposed lot meets the lot area and width requirements for the I-1 Limited
Industrial Zoning District.
The Planning Commission and City Council reviewed the preliminary plat at their September 7, and
September 13th meetings, respectively, and recommended approval subject to the following conditions:
1. 10-foot wide drainage and utility easement be provided on the south lot line.
2. Updated evidence of ownership be submitted.
3. The Planning Commission agrees to waive its' review of the final plat so the final plat can proceed
directly to the City Council to expedite this process, due to the simplicity of the plat and the minor
revisions requested.
MOTION BY SECOND BY
TO:
Review: Administration: Finance:
RFA-O01
Request for Action
Planning Case 93-26
September 27, 1993
Page -2-
A Final Plat has been submitted with the changes requested by staff, and the City Attorney and City'
Engineer have reviewed the Final Plat and find the plat to be in order. The enclosed resolution approves
the Final Plat and staff recommends approval of the resolution.
[ PER 13~. NO. 317'9512
TANGENT
LOT I ~X (-
BLOCK 1
[-~ E-',-' ' '"'
,-, EL_ ,MEM'"R,~-,~_,., PARK
AROBE
NGINEERING
CONSULVI#O ENOINEEA$,
ffLANNEII$ mad LAND SUIIVI¥O#S
September 22, 1993
Kirk McOon&ld
Management Asst.
City o~ New Hope
4~01 Xylon Avenue North
New Hooe, MN 55428
RE-
Village Industrial Park
Our File No. 99.15037
Dear Kirk:
I have reviewed the prn~o~ed final Dlat for the above-referenced
addition. I find the plat to be in order from a legal =tandpoint.
As you know, I have oreviously examined the title evidence fcr The
subject property, and find it to be in the name of Bruce
Paddock. The filed plat appropriately lists he and hi~ wife as the
property owners.
Please contact me if you have any questions.
Martin P. Malecha
Enclosures
cc:
Daniel J. Donehue
steven A. SonOra11, Esq.
SeptemDer 10, 1993
Mr. Kirk McDonald
Management Asst.
City of New Hope
4401 Xylon Avenue North
New Hope, MN 55428
RE-
Village Industrial Park 2nd Addition
Our File No: 99.15037
Dear Kirk:
As part of the platting process I have examined title to the real
property known as:
Outlot A, Village Industrial Park, according to the recorded
plat thereof on file and of record in the Office of the
Register of Deeds, Hennepin County, Minnesota.
Based upon a title insurance policy issued by Chicago Title
Insurance Company dated August 23, 1991 at 7:00 a.m. and based upon
my review of the abstract records at the Office of the Hennepin
County Recorder, current through August 25, 1993 at 7:00 a.m., it
is my opinion that the subject property is owned in fee by:
BRUCE G. PADDOCK,
subject to the following:
1. An easement for water mains in favor of the Village of
New Hope dated MaY 26, 1959, filed June 3 1959 as Document No
3179612. '
2. Easements for utilities and drainage as shown on the
recorded plat of Village Industrial Park.
3. A Variance and Site Improvement Agreement of the City of
New Hope filed July 23, 1993 as Document No. 6121884.
Mr. Kirk McDonald
Sept ember 10, 1993
Page 2
4. The statutory interest of the spouse of Bruce G. Paddock.
The preliminary plat indicates Bruce Paddock is married to Krist:ne
J. Paddock. She must join with him in signing the Final Plat.
This opinion may also be subject to some of the following items:
1. The right of any person in possession of the property.
2. All rights of public highways and streets upon the land.
3. Possible mechanics liens for work done in the past 120
days which do not appear of record.
4. Encroachments, easements and other matters which might be
ascertained by an actual survey and inspection of the
premises above described.
5. Existing zoning and building regulations and ordinances.
6. Liens, claims or rights under the law or Constitution of
the United States which the statutes of this State cannot
require to appear of record.
Sincerely,
Martin P. Malecha
s3f2
COUNCIL
~.~[ ~!~] REQUF.~T FOR ACTION
/
Originating Department Approved for Agenda Agenc[a Section
tJevelopment
City Manager & Planning
Kirk McDonald D 9-27-93 Item No.
By: Management Assistant By:~/ 8.
PLANNING CASE 93-22 (continued) - tI~"QUEST FOR CONDITIONAL USE PERMIT TO ALLOW
ERECTION OF COMMUNICATION SUPPORT STRUCTURE AND ANTENNAS, 3877 INDEPEND-
ENCE AVENUE NORTH, PID #18-118-21-32-0042, KIRK HUBER PENGELLY, JR., PETITIONER
This planning case was tabled at the August 23rd and September 13th Council meetings, pending
submission of a structural engineer's analysis to the Building Official by the petitioner. The
petitioner has submitted the attached structural investigation of the proposed radio tower bv a
consulting engineer and the structural analysis has been approved bv the New Hope Buildine
Official. Based on the recommendations of the report, the petitioner has agreed to lower the total
height of the tower to 50 feet (4-~lO-foot sections and a 10 foot antenna), as opposed to the original
request for a total height of 60 f~et.~ '~ ~'
Staff recommends approval of the request for a conditional use permit to install a radio tower 50-feet in
height, subject to the following conditions:
1. Installation of six (6) foot tall type fence around rear yard or at least the base of the tower.
2. Tower not to interfere with neighbors radio/TV reception.
3. Annual review by staff.
4. CUP to expire and petitioner to remove tower from property if petitioner moves from property.
5. Tower to be constructed in accordance with the recommendations contained in the structural
investigation.
The enclosed resolution approves the CUP request. If the Council determines not to adopt the resolution
of approval, staff recommends that this issue be tabled for additional review and consideration of f'mdings
until the October 25th Council meeting.
MOTION BY ~.~ '~,.C~/~ SECOND BY
Review: Administration: Finance:
RFA-O01
I:l~ N J LII. TIN {] ~ITlq LI CT U Ii~ A L.
&l~2 · 3~1-0~'1'i · ~'~X , ~l,~ ·
September 23, 1993
Mr. Kirk Pengally, Jr.
3877 Independence Avenue No.
New Hope, MN
Ham Radio Antenna Tower
40 ft. "BX Series" Rohn Tower
Dear Kirk:
As requested, we have made a structural investigation of a proposed radio tower which is to be
purchased and installed at the above address. Based on our initial conversation, we understand
that you wish to install the subject tower for the purpose of mounting an antenna which will have
its center of pressure approximately three (3) feet above the tower, or 43 feet above ground
level. We also understand the antenna will have a projected area of about 6 square feet.
For our investigation and analysis, we have used the following criteria:
Rohn product data for the "BX Series Tower." (Rohn, 6718 W. Plank Road, P.O. Box
2000, Peoria, Illinois 61656).
2. Uniform Building Code, 1991 Edition.
3. Assumed soil bearing strength of 2000 PSF.
LNVE~TIGATION
Based on an 80 MPH wind, using engineering data for the tower as furnished by Rohn, our
calculations indic, ate that 'BX4" thru "BXS" sections will be suitable for the proposed
installation.
Our analysis indicates the foundation pad should be 6'-0"L x 6'-0"W x 4'-6"D to prevent
overturning. The maximum soil bearing pressure at footing level is less than 2000 PSI: for this
condiuon.
Mr. Kirk Pengally, Jr.
September 23, 1993
Page 2 -
RECON~ENDATIONS
1. 'l~e tower should consist of the (4) heaviest sections BX~,-BXB.
The footing pad should be founded on soils competent to bear at least 2000 PSF without
damaging differential settlement. The footing should be 6'-0'L x 6'-0"W x a'-6"D and
reinforced with (7) #4 x 5'-6"L each way top and bottom (total of 28 bars). Provide 3"
of concrete :over on the bars. The 2§ day concrete compressive strength should be 3000
PSI and the strength of reinforcing steel should be Grade 60.
It is hoped the above indicates the information which you requested. Plea~ call if you have any
questions.
Sincerely,
Roland V. Johnson, P.E,/
RVJ:skd
1::'0320193.671
REQUEST FOR ACTION
Originating Department Approved for Agenda Agenda Section
L~evelopment
City Manager & Planning
9-13-93
Kirk McDonald Item No.
By: Management Assistant By: 8.1
PLANNING CASE 93-22 (continued) -~QUEST FOR CONDITIONAL USE PERMIT TO ALLOW
ERECTION OF COMMUNICATION ~3UPPORT STRUCTURE AND ANTENNAS, 3877 INDEPEND-
ENCE AVENUE NORTH, PID #18-118-21-32-0042, KIRK HUBER PENGELLY, JR., PETITIONER
This planning case was tabled at the August 23rd Council meeting, pending submi~ion of a
structural engineer's analysis to the Building Official by the petitioner. To date the analysis has not
been submitted. If the report is submitted prior to Council meeting it will be reviewed by the
Building Official and a recommendation will be made regarding its acceptability. If the report is
not presented prior to Council meeting, staff recommends tabling the request until September 27th.
The petitioner is requesting a Conditional Use Permit to allow erection of communication support
structure and antennas, pursuant to Section 4.923(3) - New Hope Code. The petitioner is a licensed
amateur radio operator and a licensed Military Affiliate Radio Systems (MARS) operator and l~e is
proposing to erect a communication support structure of 49 feet, plus 11 feet high antennas, to allow for
effective and reliable amateur transmission and reception under F.C.C. regulations. City Code requires
a Conditional Use Permit for radio towers in excess of 35 feet. The petitioner indicates that the self-
supporting structure is a sturdy, well-designed commercially manufactured amateur/commercial structure
which will be installed according to all manufacturer's guidelines, will be located in the center of tt~e
fenced rear yard of the property behind the existing home and will be installed on a 4x4x4 concrete pad.
The existing structure meets ail setback requirements.
In the past the City has approved many of these taller antenna for businesses and a few for single-family
homeowners, the last one approved in 1982 (see enclosed minutes) and identical in height to this request.
A neighbor across the street has submitted a letter in support of the installation, and 5 property owners
in the area have submitted letters in opposition. Major concerns expressed by the neighbors include:
possible tower collapse, attractive nuisance, diminished property values, re-sale of homes, and the
aesthetic view of the tower. The petitioner presented findings from the Hennepin County Assessor that
show that property values do not depreciate when a tower such as this is installed. (continued t
MOTION BY SECOND BY
TO:
Review: Administration: Finance:
~ RFA-O01 ~
Request for Action ~
Plaiting Case 93-22 (continued) -~ :~ .~
August 23, 1993 ~',~ ? ~
Page -2 - ~~ ~
~e Plug Commission reviewed ~s request at ~e~ Angst 3, 1993, meet~g ~d ~ere w~
comiderable ~o~t of di~ussion reg~d~g pro~ values, scr~g, tower height, ~d ~e ~nefi~ ~
provided by mm~ ~io o~to~ d~g ~mr~ dis~mrs. ~e petitioner ~dica~ ~t he was wiling
to compromise on ~e total height of ~e tower ~d ~I1 a redouble ~ount of ~r~g/l~dscapmg.
A motion was made to approve ~e request subject to ~e follow~g co~itiom:
1. Immllation of s~ (6) f~t roll ~ fence ~ound re~ y~d or at least ~e base of ~e tower.
2. Tower not to ~teffe~ wi~ neigh~rs radio/W r~eption.
3. ~ review by stuff.
4. C~ to exp~ ~ ~titioner to remove tower from pro~ if ~titioner moves from pro~.
It was also recomme~ ~t ~e ~titioner m~t wi~ ~e neigh~rs prior to ~e Council meet~g to
resolve/develop a plm reg~d~g ~~g ~e tower. ~e motion failed, wi~ 3 vot~g to approve the
C~ md 3 vot~g to deny.
The enclosed resolution approves the CUP request. If the Council determines not to adopt the resolution
of approval, staff recommends that this issue be tabled for additional review and consideration of f'mdings
until the September 13th Council meeting.
Staff
Certification of Plan~ by Structural En?ineer - one of the major issues discussed at the August
9th Council meeting was whether the City would require certification of the tower plans by a
structural engineer. In reviewing this matter with the City Attorney and Building Official, they
have pointed out specific sections of the Zoning Code that address this issue, as follows:
Section 4.032, General Building Requirements, Subsection 3, Accessory Buildings. Uses and
ui~, Subsection (~), Communication Reception/Tran.gmi~sion Device~, (v) Buildin~ Permits:
"A building permit shall be required for the installation of any communication devices
ie_q.~g a co.ndi.'tion, al .use permit..B .uildin_g permit applications shall, be accompanied by
,,s~e_p~!a~. ann~stru~c~..~ com~po_n.en, ts tlata for the communication device, including details
· anchoring. 'lne nuuomg umclm must approve the plans before installation."
Section 4.033, Performance Standardn, Subsection (1), Pumose: "The performance
standards...are designed to encourage high quality development by providing assurance that
neighborln~ land uses will be eompatible...The Building Official shall be responsible for
enforcing these standards and may require the submission of information showing compliance
or non-compliance with the standards."
Subsection (1), Conformanc~ to Standard~: "Before any building permit...is approved, the
Building Official shall determine whether the proposed use is likely to conform to the performance
standards. The developer shall supply additional data about the proposed use...where
required to do so by the Building Official. It may occasionally be necessary for a developer
or business to employ specialized consultants to demonstrate that a given use will conform
with performance standards."
It is the City Attorney's opinion that the Building Official has the authority, per City ordinances, to
require certification of the tower plans by a structural engineer.
'
We, the undersigned, are opposed to Mr. Kirk Huber Pen~3~ly ~.
plan to erect a 60 ft. communication structure at 3877 Independen~,e~
Ave. North. We feel that a tower of this size w6uld be an eyesore,
that it poses a potential threat to our health and safety, and that
it would negatively affect the value of our homes and property.
As a consequence, we urge the members of the New Hope City
council to deny Mr. Pengelly's request for a conditional use permit
for this purpose.
~.~9 Phone No.
~ :~~ ~~___~<~_~~ ~~ ......... --j ....
~~~~ ....... ~ .............. , .....
We, the undersigned, are opposed to Mr Kirk Huber Pen~ellv'~
plan to erect a 60 ft. communication structure at 3877 Independence~
Ave. North. We feel that a tower of this size would be an eyesore,
that it poses a potential threat to our health and safety, and that
it would negatively affect the value of our homes and property.
As a consequence, we urge the members of the New Hope City
Council to deny Mr. Pengelly's request for a conditional use permit
for this purpose. · -
2
4.
5.
6
7
8.'
11
12.
13.
14.
15
19.
4401 Xylon Avenue North
New Hope, Minnesota 55428-4898
Telephone: 612-531-5100
TDD Line: 612-531-5109
City Haft Fax: #612-531-51
Police Fax: #612-531-51
Public Works Fax: #612-533-76,
September 20, 1993
SUBJECT:
Zoning Code Change Regarding 35% Green Area Requirement for
Properties Located in the I-1 Limited Industrial Zoning District
Dear New Hope Business Owner and/or Tenant:
I am writing to inform you about a change that the City Council approved for
the zoning code this past spring that you may or may not be aware of. The
City's Zoning Code for properties located in the I-1 Limited Industrial Zoning
District has long required that at least 35% of the lot area be preserved as a
green landscaped area. The intent of the 35% green requirement was to
provide for an aesthetically pleasing industrial area, for which the City is
known. However, over the past decade, the City has experienced significant
in-fill development, and the diminishing land supply reduces the opportunities
for economic development through new industrial construction. In the past
several years the City has received a number of requests for industrial
expansion, but the I-1 35% green space standard established an artificial limit
to industrial expansion and, in some ways, discouraged private re-investment
on established industrial sites.
In January the City Council directed the Planning Commission and City staff to
study this issue and make recommendations. The Planning Commission felt
that aesthetically pleasing industrial areas could still be maintained through the
enforcement of existing performance standards, and recommended the change
to promote private economic development/expansion and to maintain a stable
industrial base. At the May lOth Council meeting the City Council
unanimously approved the recommendation and adopted an ordinance change
that reduced the I-1 green area requirement from 35% to 20% to encourage
the expansion of existing businesses. The change could have a significant
positive impact on the potential of your company to expand at its present
location.
Family Styled City ~ For Family Living
-2-
Although this important code change was announced in the June edition of the
City newsletter, during the past summer I have talked with many business
people who were unaware that this change took place, so I wanted to contact
as many businesses as possible with this letter to bring this change to your
attention. New Hope businesses with questions regarding this ordinance
change, or who would like to discuss future expansion of their business, should
contact Kirk McDonald, Community Development Coordinator (531-5119) or
Doug Sandstad, Building Official (531-5122).
Sincerely,
Daniel ~. L~onahue
City Manager
Kirk McDonald, Management Assistant/Community Development
Coordinator
Doug Sandstad, Building Official
Changes Promote
-'gusiness Expansion
Following a three-month
study, the New Hope
Planning Commission
made a recommendation to
the City Council that the
Zoning Code requirement
for a 35 percent green area
in the City's I-1 Limited In-
dustrial Zoning District be
reduced to 20 percent to
encourage the expansion
of existing businesses.
The intent of the long stand-
ing 35 percent green require-
ment was to provide for an
aesthetically pleasing indus-
trial area, forwhich New Hope
is known.
However, over the past de-
cade the City has experienced
significant in-fill development,
and the diminishing land sup-
ply reduces the opportunities
'or economic development
.nrough new industrial con-
struction. In the past several
years the City has received a
number of requests for indus-
trial expansion, but the I-1 35
percent green space standard
established an artificial limit
to industrial expansion and
diSCOuraged privat® re-invest-
ment on established indus-
trial sites.
The Planning Commission
felt that aesthetically pleas-
ing industrial areas could still
be maintained through the en-
forcement of existing perfor-
mance standards, and rec-
ommended the change to pro-
mote private economic de-
velopment-expansion and to
maintain a stable industrial
base. The City Council ap-
proved the change at the May
10 Council meeting.
New Hope businesses
with questions regarding
the ordinance change, or
who would like to discuss
expansion of their business
should contact the City Hall
at 531-5119.
September 9, 1993
TO: Kirk McDonald - City of New Hope Management Assistant
FROM: Bill Sonsin - New Hope Planning Commission
RE: Home Occupations
Kirk, attached are my initial thoughts about revising the New Hope Codes dealing with
home occupations in residential areas plus some copies of articles I've accumulated over
the years about what used to be called "home offices" and is now being called
"telecommuting", "virtual offices" and the like. Please share this with other invitees for
the 9/15 meeting as you feel appropriate, either ahead of time or at our meeting.
Thanks.
Home Occupations
Key trends:
Transportation improvements over the decades, from railroads, to planes and
interstate highways. As transportation costs have shrunk from our improving
infrastructure, it became less necessary to keep business entities as physically close
together.
Transition to a global economy that began in the early 1980's. Initially observed as
closing of obsolete factories (the rust belt syndrome), it has transitioned to massive
shrinking of white collar jobs in many larger corporations. Many of these displaced
blue collar and now white collar workers have found new careers and jobs in small,
emerging companies--many started by some of these displaced workers. Many get
their start in basements, garages, etc. with the successful ones transitioning to office-
warehouse parks, commercial office buildings ,etc.
Information and communications revolution: computers, low cost
telecommunications, etc. that have made it possible to work in more decentralized
modes than ever before.
Environmental concerns that are leading to mandates for larger employers to reduce
commuting costs as a way to reduce air pollution. The communications revolution
described above makes this possible. A mandate to do this in Southern California
already exists. Spread to other metropolitan areas around the country, including the
Twin Cities, will most likely follow at some point.
Many observers feel these 4 trends are major and irreversible. If anything, they may even
accelerate faster and faster.
Another current trend that can change back and forth is the desire of many people for
more freedom and flexibility in the workplace, including the desire to be able to work
where and when one wants (a home setting, a more desirable geographic area, a suburban
or rural location versus a central office in a downtown location, etc.). The trend is strong,
but not as "straight line" as the other four.
Also, this year's Supreme Court decision on tax deductions for home offices will cause
changes in business practices for home based financial planners, tax preparers, insurance
agents, contractors, etc.
So what does this mean for New Hope?
There would seem to be 2 general categories of home occupations:
Telecommuters: those who work out of their homes on a "stand alone" basis. No
customers visit the premises. There are no deliveries other than the U. S Mail, UPS,
Fed Ex and only occasional visitors. There are no other employees regularly on the
premises. These workers can be employees of a business or independent contractors.
They work out of a their homes for the convenience of themselves and/or their
employers. Business equipment is usually limited to a desk, file and work paper
storage, a computer, a fax and/or a second phone line. The current New Hope code
would seem to already classify these as permitted uses and hence require no changes.
Small stand-alone businesses: this is where the New Hope code seems unnecessarily
restrictive in places. A number of recent home occupation planning cases seemed to
be quite routine, such income tax preparation, part-time cosmetology, jewelry
handicrafts, etc. Others have seemed to be, in practicality, over reaction due to the
current code. Moreover, as mentioned above, many small employers start out in spare
bedrooms, garages, etc. If New Hope is perceived as a community that is difficult for
quality small businesses to start up in and operate in, our City may become less
desirable as a place to live and stay. The incidence of new, home based businesses is
growing. Our opportunity would seem to be to get out in front of it and lead it to
where New Hope as a community would like it to go.
While probably wanting to retain existing code provisions relating to long term visual and
structural concerns [Section 4.038 (3) (a) Structural Changes and (d) Area permitted], I
think we should take a look at Traffic, Employees, and Sales on Premises.
Maybe we should consider a number of real world situations as a way to begin formulating
what we would like to see and what we would like to avoid:
Income tax preparation- work is winter seasonal and much may be done in the evening or
on weekends. Some clients may come to the home (one at a time) while others send in
their materials. However, urgency as April 15th approaches may increase deliveries by
Fed Ex, local couriers, customers and the like (traffic). A part time employee may also be
hired by the preparer for a short period of time.
A Shaklee distributor with a number of sales people in their network who regularly visit
the home for product pickups and sales drop-offs. Occasional meetings en masse may be
held. Large volume deliveries occur weekly.
A commercial contractor with building crews doing large jobs in different parts of the
country.
An architect who works out of his home. Client and business meetings are held regularly
at the home.
A residential contractor doing major remodeling and home construction jobs in the
western suburbs. May have a number of employees or subcontractors from time to time
who he sees both at his home office and at job sites.
A financial planner who regularly meets with clients in her home where her office is based.
A technical communications, writing, and consulting business that employs both spouses,
several adult children, and several non-family members. Business is conducted out of the
basement of the home. Clients come to the home occasionally for meetings. All parking
is in the driveway. Fed Ex and courier pickups and deliveries occur daily.
A computer sof~ware consultant who works out of his basement. He is the only employee
at present but he does joint ventures on a regular basis with other consultants, and
business meetings occur regularly at the home.
A state licensed daycare business conducted in the home with large volumes of drop-offs
in the morning and pickups in the late afternoon.
A pair of engineers are working in the garage and basement of one of their homes to
develop a new computer that they hope will revolutionize the computer business.
Miscellaneous: a CPA associate tells me that the Supreme Court home office decision
states that a home based business with an outside employee working in the home
automatically qualifies for the home office income tax deduction.
In closing, we should remember that today's permitted home occupation, if successful,
can become tomorrow's variance case and the next days commercial real estate tenant.
Issues~
What does New Hope visualize as attractive home occupations? How much can the City
influence through pro-active leadership and what does it need to control via regulation?
What are other similar communities doing?
It appears that home occupations are enforced today on a complaint basis. Is this the way
to continue?
THE KIPLINGER WASHINGTON EDITORS
1729 H St., N.W.. ~'~hington, D.C. 20006-3938
Dear Client: Washington, July 9, 1993
~ Breakthroughs in communications will chan~e how you do business.
Digital technology and spread of fiber optics will crea~e single systems
out of computers, phones and cable TV. Results will be revolutionary.
You'll see much of this in the next 5-10 years. Critical data
for managing will no longer work its way up & down the corporate ladder.
You'll be able to tap more information and make better, faster decisions.
Technolo~7 will transform how you work, operate your business.
Maybe even W~ERE you work. You'll be able to see fellow workers,
write reports together or dig into sales records no matter where you are.
Communities that have fiber optics will have a big advantage over others.
Sales reps will be out of the office more, staying in touch
with their bosses through combination laptop computers and fax machines.
You will be able to reach them anywhere by wireless satellite phones.
RealTors will use computer-TV-phone technology to show houses
to prospects in another part of the country..."walking" them through
each room and around the yard. Even opening doors to peek in closets
or check out the garage. Also to show what a remodeling job could do.
Manufacturers and repair services will be able to order parts
with less rigmarole. They will see the item that they want on a screen,
Turn it upside down or sideways if desired, then push a button to order.
Ad agencies will reach the people they want, not pay for others.
Marketing will be sorted out by age, income, occupation and family size.
TV ads for baby goods will be seen only by new parents and grandparents.
Retailers will also target their customers with more precision,
using information from past purchases...color preferences, styles, sizes.
From home, you'll be able to key in your height, weight and measurements
and see a model your size on a screen wearing clothes you're considering.
If you buy furniture, computers will show how it would look in your room.
Doctors will be able to consult with specialists 1000 miles away
or check a patient's heart and blood pressure using transponders in home.
Utilities will read meters electronically...no more meter reader.
Entertainment business will never be the same. Video-on-demand
will drive movie-rental stores out of business within the next ten years.
You'll be able to see first-run films immediately after selecting ~hem
or get your choice of camera angles if you're watching a game or play.
Cheaper and easier teleconferencin~ will be available anywhere.
Handy for job interviews, sales presentations and meetings of all types.
Means more people Will work at home...an untethered work force.
Telecommuters will be able to handle the same jobs they do at the office.
They'll still come in a day or Two a week...mostly just to stay in touch.
Even calls to 800 numbers will be routed to operators working at home.
I All this will free up office space. And that saves money too.
co,.~,G,.,.,m ~ ~. w.~,.,,~','o. ~,.c.
WILLIAM $. SONSIN
3308 GETTYSBURG AVENUE NORTH
NEW HOPE, MINiN'ESOTA 5~42'7-1741
Home: 612-5454401
Office: 612-52~-.0285
FAX: 612-52~...0372
TO: ,~ ,,,,' 2,.
Rural SUes See Home
As Where Jobs Are
R[rRAL STATES promote home
businesses as a key to eco-
,nomic stability.
Alter meeting ruth limited suc-
cess in attracting corporate jobs,
state economic-development officials
see home businesses as a steadying
force for small towns. "States are
realizing that there are only so many
businesses that can be obtained from
other states," and that they must
support their own resources, says
Paul Edwards, a home-business con-
sultant in Santa Monica, Calif.
States are starting networks of
home enterprises to offer business
tips and camaraderie.
State University's cooperative exten-
sion service, funded by the state and
federal governments, has targeted
home businesses as a way to retain
jobs in rural communiUes. Marnyn
Burns, a specialist on home-based
business for the extension service,
started a statewide associatiou of
at)out 500 home businesses in 1990.
lVis. Burns also gives seminars on
starting such ventures and serves as
a resource for people with home
businesses. She has written a hand-
book for other states interested in
setting up a similar service.
Struggling owners see such out-
reach efforts as essential. "Every-
body is desperately searching for
some way to make a living out here in
the country," says Janice Garrett, a
Minden, .Neb., farmer. Ms. Garrett,
who makes furniture and other home
items with her husband to supple-
ment their farming income, learned
at a recent state-sponsored seminar
that they could use an electronic
bulletin board through a nearby pub-
lic library to locate suppliers and
are
cials tn lift zoning restrictions on
home businesses. Last year, Idaho
made a videotape to impress on town
officials the economic potential of
home businesses.
Towns are helping, too. In March,
Stillwater, Okla., lifted a ban on
home businesses employing anyone
who doesn't live in the home. The city
now limits parking, signs and other
obvious indicators of business activ-
ity. One home business Stillwater
still discourages: auto-repair shops.
the
Virtual
entrepreneur
modem.
He works anywhere
anytime, in an office'without boundaries.
In Lexington, Ky., ophthalmologist Dr. John Garden examines .inmates without traveling the 40 miles to
the prison. Instead, he tests eyes using a PC, modem, and video camera. · From her living room
in a Denver suburb, Brenda Calamera Brim,age develops math
textbooks that sell millions of copies and manages an ever-shift-
Lag stable of writers and designers spread across the country.
"It wouldn't make any sense for me to have employees," says
Brimage, founder of B&B Communications West Inc. in Highlands
Ranch, Colo. "I never know what my projects are going to bed'
And in Long Beach, Calif., developer Frank Cottle has built
six telecommuting centers where more than 600 tenants use an
array of computers, faxes, and phones to work shoulder-to-
shoulder with colleagues thousands of miles away. Cottle's corn-
pa_ny, Office Technology Group, will open another three "tele-
centers" by the end of this year.
"It doesn't matter so much where you live and work as long a.~
~o~.'re capable of communicating properiT," says ~nttle.
Garden, Brimage, and Cotfle are v/rtual entrepreneurs. Their
offices have no boundaries and are made possible by new tech-
nology and social trends. Entrepreneurs, who always knew the
home was a fine latmchpad for a business, are now realizing they
can set up shop anywhere; they don't even have to work from
the same office as their employees.
Flexibility is only one of the countless benefits of this new
business organism. Others indude:
m lncreased produaivit) by both the business owner and the employee.
The workday isn't only expanded, it's structured to fit the re-
quirements of the job. People _work when needed, not to fulfill
the demands of a time dock.
· The admera o/t~ justin-time worl~force that can be deployed at will.
People can be hired for specific tasks. Company infrastructure is
no longer a limiting factor.
mA happ/er, more mot/tm~ ~forc~ ~
--by mark
hen ricks/illu, strations by
anthony martin
JUNE 199~) SUCCESS 41
T H E T ~ C H N 0 L 0 Q Y R E V O L U T i 0
· Better zoorkos who can be hired from any locatioru
· Freedom for the entrepreneur, who can operate from anywhere.
Other new terms for virtual entrepreneurs include cyberspace
corporation, virtual workspace, or extended office. Whatever
you call it. it adds up to the same thing, says Thomas ,Miller, vice
president of home office research for Link Resources of New
York: "the abili~ to extend to literally anywhere your ability to
do what is known as or'ce work.'
Ev ,erybody who has ever drafted a memo on an airplane knows
that work can be done away from headquarters. But today, under
the combined pressures of downsizing, work/family worries,
and evolving technology, the virtual office is the ideal situation
for the corporation, the entrepreneur, or the individual. Thou-
sands of companies are doing it. Your venture may be next.
Ting Rm~G Tg~oLo~Y Tmz
The tide of h-~forrnation technology, ~h~ d~g ~e 1980s
~ floated &e ~ o~ce to ~e s~ce, ~g en~eprene~
a new way to conduct bm~ess ~d ~e money. Accor~g to
~s ~1~ tel~o~u~ com~mtJ~ N~, ~e ~ who
corned ~e te~ ~kc~muti~ "~e ~en~ t~olo~es
· at m~e it e~y ~" Person~ computers have crated
s~ce ~e e~ly 1980s, but it's oNv recently ~t ~ey've ~cOme
~eap enough, powe~ enough, ~d e~y enougn to me.
ple ~so have become more computer fitemte, so ~ey c~ do
~ore work ~out ~e support or' a te~ s~L
Michael Ko~ourou~s, who operates a business out of his
Broo~, N.Y., home,
have an international trading
bm~ess ~out ~ PC. He ~s
computer ~mb~es to get 1~
on ovenem companies looMng
for ~efi~ pr~.
Does the low-touch, high-
tech approach work? ~t year,
Ko~o~ou~'s on,non, on~
computer oust ~ $1~,~
by selling ~efic~-made win-
dow ~ con~fionen toJap~.
~e PC principle h~ ~p~ca-
tions beyond the home-based
en~epreneur~oum~ Graphic{
Inc. was founded 19 ye~s ago
to produce transcriptions of
broadc~t news ~d ~ shows.
PCs ~d VC~ let ~e comp~y's
14 ~n work ~m home.
~ ~ it's ~tter ~t ~'re not
based in one central location,
s~ce sprig ~e
A new publishing hub? From her Iowa farm, B.J. Doyen nego-
tiates lucrative deals with book publishers nationwide.
across the United States gives Journal Graphics coverage across
domestic time zones.
This virtual company never has to lose a valued employee.
When one of Journal Gmphic's top-notch transcribers relocated
to St. Petersburg, Fla., from New York, her job went with her.
"Even ffit's a temporary, situation, there are ways for the person
to work from home," says Jim Smith, Journal Graphics founder.
And technology allows Smith to work where he wants to.
Although Journal Graphics originally was located in New York.
the entrepreneur moved the company to the Rockies several
years ago. "I grew up in Denver and wanted to move here. It
wasn't a problem," says Smith. Nor was it bad for business:Jour-
nal Graphics projects $3 million in sales this year.
But it's more than .~. High on the indispensability list is the
ubiquitous fax machin~e - yet another electronic path for shut-
tling information back and forth.
And while_overnight delivery may not strike you as high tech,
it is also fueling the virtual office covfl%ovation. Because of over-
night delivery, companies can send products to other businesses
quickly-- no matter where each business is located.
Take, for example, Doyen Literary Services Inc. Company
founder and literary agent B.J. Doyen uses overnight mail to
pitch manuscripts and negotiate rights with book publishers
from Hawaii to Europe.
"Our street address sounds like a big city," confides Doyen.
"It's 19005 660th Street. The fact of the matter is, it's on a farm
in Newell, Iowa, and no one lives within three miles." So what?
Doyen can get her job done as
efficiently in Newell as she could
in New York City.
Phones are also pla,ving a role:
Bet--"~'~'~een a~nswerinff machines~.
voice, mail. and other services,
more and more work can be
done remotely. Unifi Communi-
cations Corp.'s call-routing soft-
ware directs a phone call to the
right person, whether it's a cus-
tomer service rep down the hall
or someone working out of his
living room. "This technology
allows a customer to have its peo-
ple work from anywhere and all
act as ff they're in the same build-
Lng," says Bob Pokress, a founder
of the Billerica, Mass., company.
The price of such telewizardry?
Unifi's telecommunication sys-
tem costs about $2,000 per user,
including all components.
~ SUCCESS JUNE lggS
T ~ ~ T 'x C N N 0 L O G ¥ R '~ V 0 L U ? ~ 3
?
C~GmG Soczz'rr
Computers have been around for a few decades now and the
human desire to control one's environment a good bit longer.
So there's got to be more behind the virtual office explosion
than some gadgets and an itch to go back to the farm. The
smartest technology couldn't put the virtual office over the top
without the help of societal changes.
~Convenience is driving many people to embrac~ rh{~ wcw~
mode~ "I have about a 14-second commute, and I get to spend
more time with my wife," observes G. Brewster Cole, who
moved his administrative role in The Pitometer Associates, an
engineering company founded by his grandfather, to a one-
room addition of his country cabin near Woodstock, N.Y.
Before that, Cole spent 20 years commuting.
Virtual office workers aren't out to sacrifice all for conve-
nience. Many argue persuasively that moving the office out of
the office boost~ pe~c£mance. "Homq-l~ased telecommuters
=tend to work longer hours," consultant Nilles states flatly. "Theft
productivity goes up an average of~15 to 20 percent."
' Those kinds of improvements catch the eyes of co~anY
accountants looking to increase profits. Not only is more work
getting done by telecommuters, less money is being spent.
"We're cutting our clients' operating overhead 40 to 50 pr/cent
over traditional space," says Cottle, the developer who rents vir-
tual office space.
,amd in an age of two-income families and in the face of work-
ers' ~owing preference for a bal-
anced work and personal life, vir~
tual entreoreneurs are findin~v
xhev're the ones best situated fo[
fretting the most out of their
employees. -
When Patagonia Inc. was in
danger of losing a top design tab
ent, the outdoor clothing compa-
ny just sent the employee where
he wanted to go: Bozeman,
Mont. Starting last March, Rich-
ard Siberell moved to this small
mountmn town. He's just down
the road from Patagonia's mall-
order operation - and almost
1,000 miles from the company's
Ventura, Calif., headquarters.
"Richard will get good product
feedback there, and it was a way
to keep him on the staff," says
Megan Montgomery, Patagonia's
director of .corporate affairs.
' That also explains why Patago-
nia's mail-order operations hire knowledgeable types from the
great outdoors rather than rely on the worker pool in relatively
urban Ventura. And there was really no reason, not to. The mail-
order group has its own minicomputer and access to Patagoma's
corporate computer via telephone. It's just as dose to needed
izfformation as if the department were based in Venture,
Placating valued employees is one thing. Corporate giants are
also turning to telecommuting to streamline and reduce costs.
Satellite offices are also part of a larger trend toward decentral-
ization. Fortune-500 companies such as IBM are breaking into
smaller, more autonomous parts for competitive advantage.
.qmall and rioter is itl. Large and lumberin~ i~ out,
Link Resources' Miller calls it a reaction aghast "the edifice
~omplex." He adds, "It's really quite Obs,,rd t,~ in~i~r that p~p~
si._~t m cubicles in stuffy buildin?s to get their work done."
Expensive downtown lease rates, high taxes, and r~sing urban
c~4ane are also causing the decentralization drift. ,amd sometimes,
the virtual office is a means for complying with government reg-
ulation. In~a, emplovers of more than 100
.~eoole have to reduce the~unt of comrm~ring their emplOy-
ees are dcfin~ -- or pay flne~ of lip tn $25,000 a day. AS similar
regulations spread to other regions, businesses will have to estab-
lish alternative office setups.
Hosm Is Wa~a~ ~ O~c~ Is
T~ec. hnology and u'ends mean you can live where you choose. So
can your employees. And ~at
means the office is defini~ly mow
lng into the home. If you're not
among the virtual office crowd,
odds say on~xt-door
neighbors ~f the
total adult wor~fk-Torce doesn't
work from a traditional office,
according to Link Resources.
But where that home is located
varies by choice. "My husband's a
farmer, and he's also my business
parmer for the agency," says B.J~
Doyen, the literary agent in Iowa.
"We like the lifestyle."
And, if you can be anywhere,
w._why not that spot where vo~
spent that unforgetrahlo
end_...~~ "I look out over the south-
western range of the Catskills,
and it's awfully pretty," says Cole,
who runs his 46-worker Little
Falls, N.J.-based firm from his
c~in in the mountains.
J~'NE 1993 SUCCESS 43
C M N 0 L 0 ~i Y ~ £ V 0 L U T
A few years ago, pundits eyeing the then-new phenomenon of
telecommuting waved theft arms and declared that we would all be
working that way before, well, before now. Obviously, it's just not
so. Telecommuting is a powerful trend, but other powerful forces
are restricting virtual offices to, a~ best, a sizable minority, of workers.
Vh-tual offices truly save money, but they require some up-front
investment. Company naysayers often point to equipment outla~
as an argument agalmt telecommuting, Nilles says. But this obsta-
cle may be more fiction than fact. A lot of this gear doesn't have
to cost your company a dime. Most telecommuting candidates
are eager to work from home and will outfit themselves.
Virtual companies must also overcome ne~tlve~ ~te, r~n ~r?o~
Many bnsinesspeople expect a home-based office to harbor ama-
teurism. To avoid those unfavorable associations, book packager
Brimage rarely invites clients to her home, and her answering
machine says oniv that "someone will get back to you." A calcu-
lated cover-up? You bet~
:'It's changed some, but I don't always volunteer that I'm a
home-based business," Brimage says. A similar low-level mas-
querade shauld protect your company's image
~IANAGING IN A VIRTUAL WORLD
Virtual entrepreneurs need to develop new management tech-
niques since they can no longer rely on sight and face-to-face inter-
action when ovex~ing people.
If technology created this problem, harnessing the right kind
of technology can help solve it.
Whether it's as simple as a high-
quality speakerphone that lets
you have productive telephone
calls with home-based employees
or as advanced as ISDN-based
videoconferencing that lets you
literally look over the shoulders
of employees, technology can
maintain some of the sense of
contact that's lacking in the virtu-
al office.
But before you rush out and
buy too much high-tech gear,
keep in mind that the virtual
worker may not be a manage-
merit problem. As the top man-
ager in your company, you may
do better to look first at change
within yourself.
"The problem with telecom-
muting is largely not technologi-
ca/," contends Nilles, the consul-
G. Brewster Cole 'with his wifg Harri~ Now he is able to over-
see his 46-person engineering company's administrative func-
tions from a mountain cabin in rural New York.
tant. "The technology to have at least 40 percent of the U.S.
work force telecommutmg at least part of the time is here now.
What isn't here is the change in attitudes on the part of man-
agers that allow it to actually happen."
Sometimes what is called for is shifting attention from over-
seeing the worker to overseeing the work - focusing on the end
product and letting the means take care of themselves. Good
management calls for up-front planning, plenty of two-way com-
munication, and adequate follow-up. "You have to figure out
what you want employees to do and communicate it to them,"
says Nilles. "And you have to be able to recognize results."
Such proponents contend that trust is the foundation on
which the virtual office is built. If you hire employees that you
consider conscientious, supervision becomes less of an issue.
If you work from home and have no employees, you may
think management issues are irrelevant. Theyfre not. Even if you
are employee-tess, you still need to oversee business relation-~
~hhit~s that can be just a] ra~i.nv, You h. ave to stav in touch
phoneT fax. and electromc mm~l_ Nurtunng your contacts is viral
"In math, there's just a finite pool of free-lancers who ~vite text2
books," says Denver textbook developer Brimage. "So I have to
know most of the people in my industry,."
Managing a virtual office poses genuine problems. But many
of them already existed - such as the remoteness that has in-
creasingly crept into business. "There's always a challenge in
managing a company that's far-flung," observes Cole.
For example, the municipal water utility engineering work
carried out by Cole's company is
on site, so its engineers work in
different locations all over the
5ountry. "I have a manager in
Atlanta, Cincinnati, Washington,
D.C., and two in Chicago, and
that's always been the case,"
shrugs Cole. "We get on the
phone a lot together and meet
three or four times a year." To
cut travel costs, they schedule
meetings at industry, conferences
they all attend. ~
It's got ups, it's got downs. But
emerging technology, pressure
for better performance, and the
accelerating shift toward infor-
mation services make the virtual
entrepreneur a virtual certainty.
'~he bottom line," says Link
sources' Miller, "is that you can
work from anywhere .and get ~e
job done." ~
44 SUCCE~JUNE 1908
BY ~EFFR£Y YOUNG
the to
Santa
These days, all you need to run a $10
million consulting business from down on
the ranch besides talent and savvy,
of course are an electronic lasso and an
airborne pony express.
NA CRISP and cold January mom-
Lng in Santa Fe, N. Mex., a sweet blue
haze of pifion smoke hangs over
Tesuque, a village and river valley a few
miles north of town. Named after the
Native American tribe whose pueblo
stands nearby amid a jumble of mobile
homes and bingo parlors, the fertile val-
ley is now dotted with multimillion-
dollar postmodem adobe houses.
Chris Leinberger, one of the three
principals in Lesser & Weitzman, the
country's largest real estate and adviso-
ry appraisal firm, ks sitting at an oxcart-
wheel cor2erence table in the guest
house and office complex of his 13-acre
spread. In the reception room an assis-
tant-his only local employee--ks han-
dling the phones and computers. Look-
mg enviably at home beneath the hand-
hewn beams and layered twigs that
form traditional New Mexican adobe
ceilings, Lemberger ks dressed for anoth-
er day at the office in impeccable jeans
and well-shined cowboy boots. He
looks suspiciously like a man who--in
philosopher Joseph Campbell's phrase--
ks following his bliss.
"The modem fax machine is what
brought me here," Leirmerge}"gays. "In
1987, we put [a new] one in each of our
offices. Before then, faxing was an
incredible hassle--you had to match
machines in different formats: groups
one, two or three. Nothing about it was
automatic. But the new machines really
set me free. All of a sudden I realized
that I~dn't need to be in any~arricular
t~lace anymore."
Shortly thereafter, Leinberger hap-
pened to visit Santa Fe with his wife
Madeleine and their two children, then
aged six and nme, with thoughts about
buying a second home. The family lived
in Los Angeles at the rune, and Lein-
berger had begun feeling apprehensive
at the prospect of his children going
through adolescence in L.A.'s "con-
sumer culture--the mails-and-movies
scene." During the vacation, with no
premeditation or calculation, they
decided to move. "The only thing we
thought about was how much we liked
it here," he remembers.
This was no lone operator working
out of a home office in glonous isolation
who could easily move his business any-
where. At the nme of the move, Lein-
berger was the mare operations manager
for his firm, w~th each of the company's
senior managers reporting directly to
him. He personally signed all the checks
for the consultancy, whose 30 employ-
ees handled 300 or so projects each year.
At that time, Lesser & Weitzman mare_
tamed offices in Beverly Hills and New-
port Beach, Calif., Washington, D.C.,
and Atlanta. The firm now has 70
employees working on 500 projects per
year and $10 rmllion in revenues. Mean-
wb_i/e, back at the ranch, Leinberger is
~still a managing partner.
£ -
EINBERGER, who has written exten-
sively on the changing face of the Amer-
ican landscape, could hardly have found
a more appropriate place to break away.
He describes himself as a sttateg~c-land-
use planner whose firm helps develop-
ers, corporations with extensive real
estate holdings, and local, state and fed-
eral government agencies decide what to
do with their land and neighborhoods.
The company, known as Robert Chartes
Lesser & Co. before it merged with a
smaller New York City-based commer-
cml appraisal outfit earlier this year, has
a blue-chip real estate client list that
includes Ch~sler Credit Corp., M/t-
subishi, Continental Bank, Lockheed,
Morgan Stanley, Northrop, Rockefeller
and Associates, and Transamerica. The
company has also advised such cities as
Adanta, Los Angeles and Santa Fe, as
well as the Department of Defense.
Besides the fax machine--his elec-
~o~nrofess~onal management
_smarts and an ia~tqnative vision of how
modem work can be accomplished
~that have allowed Leinber~er ~9 tull th~
c~oml~anv from his idvtlic spread A~-~
they were building the company-~ the
mid-1980s, he and his Krst partner, Gadi
KaufiTmnn, worked to,~~
~an Indevendent enti~ run by entre~re-
pe,m'ial managers who did~t need or
~tant lots of microrn~o~ement.
tied much of their employeeS/compen-
sation to performance, then built an
extensive weeldv renorhnt,
&fibuted by fax and E-marl/all of which-
Forbes ASAP
BREAKINg AWaY -,--
allows them to stay on top of existing
and upcoming proiects without having
to gather in some central location. Santa
Fe and LA are equally in the loop.
This original concept of a fairly loose
con.federation held toeether by uadiwd-
ual ininanve and resnonsibiliw laid the
groundwork for Leinberger's great
escape. "You smaply can't be a control
freak to mike ~ he says. You
cannot rmcromanage by long distance.
Unless you can successfully delegate,
this approach won't work."
Lemberger mentions two other cru-
mai elements that led him to choose
Santa Fe: the Albuquerque a~,,~ort is
only an hour ~rom Ns front door, so he
can quickly be on his way anywhere he
needs to go~ and there is _cellular phone
coverage throughout the Santa P~
region. "I couldn't survive without
this," he says, pul!ir~g b. is t]2p phone out
of the pocket of his leather jacket to
answer a client call.
After he finishes the call he says,
rather mommAdly, "It looks as ff I'll
have to stay in New York a little
longer than I expected next week.' Per-
haps the hardest thing about doing
business in paradise is that~vou can't
,always stay ,put.
O~ course, nothing is perfect--even
m Santa Fe. One of Leinbergers biggest
problems is maintaining contact with
co-workers, building the kind of cama-
raderie that comes with the serendipity,
of water coOler conversation. Part of"-"
that necessary, human conza!:_ t ~s provid-
ed by a heavy travel schedule. In the
upcornmg week he wi.U spend days in
Las Vegas and Los Angeles, returning
home each evening; one day in Santa Fe
and then two days in New York. From
there, he will fly on to St. Petersburg,
Russia, where he'Ll spend a week trying
to come to grips w~th the socml, poLiU-
cal and econormc chaos of that country.
"We're working with the govern-
114
t
Forbes ASAP
ment of the city to try and help them
privatize their vast landholdings and
btttldings," he explains, "starting with
hotels to attract busmesspeople, then
moVing on to commercial and industri-
al ventures. Then, with these revenues,
they hope to improve their inirastruc-
rare: roads, raft, port and communica-
tions---espeei ~ 11 y communications."
All this travel exact~ a toll--long
absences from home and a pending
divorce are the most significant conse-
quences~but it is a cost that might
well have been exacted by a demanding
job had Lemberger stayed in Los Ange-
les. And there is a growing likelihood
that as more compames and govern-
ment entities are dragged kicking and
screaming into the age of information
technology, the number of miles logged
by executives like Leinberger will go
down considerably.
THINGS ARE charting in Santa
too, as the town becomes something of
a Virtual headquarters for workers
spending longer periods away f~xn their
centers of operation. The result is a
backlash of sorts against interloping
Texans, Manhattanites and Californi-
ans. A battle betw~ prodevelopment
forces allied with the mayor and a no-
growth coalition arrayed around the city
commissioners has recendy turned into
an ugly spat replete with flaring tempers
and public name-calling. For the
moment, permission for water rights are
hard to come by~ hence, new building
permits can be meaningless.
But efforts to pull up the drawbxiclge
may already be too late. Santa Fe, a
town of about 63,000 with a history
that stretches back to the 16th century,
now has more square footage of Sl~:ial-
ty retail space than West Los Angeles,
Georgetown or Cambridge, Mass. The
town is also a major center of art sales
in the urated States. And there are
dozens oi restaurants, many of which
serve a self-described nouvelle New
Mexican cuisine: jalapefio Caesar salad,
grilled tuna on a bed of beam, chile-
derived soups and so on Santa Fe even
has two symphony orchestxas and a
world<lass opera, but there are precious
few food stores and hardly any shopping
centers for the hoi polloi.
Santa Fe is saved f~om the single-
industry, tou~t-a~ fate o~ Camael,
Calif., and Aspen, Colo., by the presence
of the stara::~p~.r~ql,, located there since
the i~: ~aaf6"~ the intellectual
ferment of the staff of the Los Alamos
National Laboratory (an hour~s drive
away}, 2,000 of whom live and wield
thear econormc power in Santa Fe Coun-
ty. Stir in the artists and writers, the
pueblo Illc[Nns and the landed Hispanic
community, and the blending of cultures
and eh~acters i.s truly co~mopolitm-L
"I'm an urban person," Leinberger
claims. "I love the crazy rmx of people.
The only other places I might choose to
live would be Pans or the Upper West
Side of New York City. Santa Fe is the
most sophisticated little town in the
United States."
Sophisticated, yes, but a decidedly
little town nevertheless, lust beyond the
window by Leinberger's work table, a
dog chases roadrunners through the
scrub {presumably, Fido doesn't watch
Saturday morning cartoons}. A parr of
horses--a dappled gray and a palorm-
no--glide around a corral, their breath
white in the morning ch~. Once upon a
me, grmgos used to nde their horses
up the nver through h~dian land to the
national forests. Now a wire fence is
stretched across the stream at the reser-
vation's boundary.
This nearly invisible fence ,might
just cut you in half if you were going
furl tilt. But of a[l the boundaries that
modem life throws up, it's one of the
few that Chris Leinberger hasn't man-
aged to leap.
Jeffrey Young ~s a conmbutmg editor to
Forbes.
116
Forbes ASAP
SPECIAL REPORT
Home
Where
The table that holds
Edmonson's IBM
personal computer and
Silver Reed typewriter
is set lower than the
other countertop~
making it much morn
comfortable for typing.
A combined telephone
and answering machine
by Sony is her
secretary. "When I
leave at night, I tum on
the machine and then I
can forget about
answering the phone,"
she says.
Edmonson uses
standard file cabinets
to stay organized but
mitigates their drab
appearance by hiding
them under counters
where they are seldom
noticed.
When Andrea Edmonson, 39, moved h~ ~
townhouse construction firm into a lO-f66T~"~- 12-fuat
homo office, she hired a designer and said: "This is the
space you get. Now make it work." The result is an
office that melds form and function elegantly.
68 MONEY-JULY 19S8
the Is
Her closet keeps
Edmonson's "junk"-
color swatches,
material samples and
supplies--oat of sight.
Whitewashed oak
doors hide the bulky
$3,200 Savin copier.
Better gear and
changing life styles
are making working
at your home more
popular--and more
profitable too.
An easel prominemfy
displays blueprints for
the $400,000
townhouses that
Edmonson and spouse
Steve Cox sell.
lhe wide Formica
countertop gives plenty
of room to spread out
blueprints and
construction plan~ Its.
circular end piece
lhe $800 Oriental rug
gives the office a cow
ambience that puts
prospective home
buyers at their ease.
by Robin Micheli
Andrea t:dmonson used to waste hours
every day driving back and forth from the
townhouse she shares with her husband
Steve Cox to the sales office of their resi-
dential real estate development company
in Minneapolis. These days. she still occa-
sionally jumps in the car to visit con-
struction sites, but the hectic rush-hour
commute to her office has become a short
walk down a flight of stairs.
Since setting up an attractive office
(pictured at left) six months ago in what
used to be the family room on the ground
floor of their home. Edmonson has saved
not only time but money. The transfor-
mation cost $4,000 all told. but she and
her husband no longer pay $12.000 annu-
ally in office rent and insurance. And the
move has even boosted business. When
potential buyers visit, says Edmonson,
"they stay much longer than they would
in an ordinary office because it's so com-
fortable. Our sales pitch is that we cus-
tom-build homes for the way people live,
and our house is designed for the way we
live. It couldn't have turned out better."
Your home office need not be as well
appointed as Edmonson's ro be just as
functional. And you don't have to be
self-employed for a home office to make
sense. Whether you are selling widgets,
bringing work home in a briefcase or just
trying to get a better grip on your per-
sonal finances, the right type of home
MONEY.JULY 1988 69
SPECIAL REPORT
office can help you meet your goals.
More and more people are coming to
that conclusion. The American Home
Business Association estimates that 27
million of us labor from home at least part
of the time. up from 23 million just five
years ago. Says Julian Cohen. AHBA
chairman: "Working at home used to
carry a stigma. It's grown and gained
respect as computers and communica-
tion devices got smaller and cheaper."
Personal computers, especially the
venerable IBM PC and Appie's Macin-
tosh. led the revolution. (For a complete
report on home-office gear. see the article
on page 80.) Silicon Valley marketers dis-
covered that the computer's real value
was not for balancing checkbooks or
playing Donkey Kong but for bringing
the workplace into the home. Today you
can crunch numbers, keep address files,,-,,
tap into remote computers, even publis',
your own book--all with Fido at your
feet. The simplest telephones come with
features like speed dialing and automatic
redial. And if you can forward your calls
from the office, no one even has to know
you are at home. Personal copiers, such
as Sharp's Z-55 ($1,299), bring office-
quality copying to your living room. And
A singular thinker revels in solitude
His Xerox fax machine links
Kirk to a network of some 33
co-workers in the West.
Kirk uses this Hewlett-
Packard laser printer for
documents and a HP color
printer for ornate structural
diagrams of airplanes.
Soothed by the murmur
of classical music on the
radio, "1 get my work
done without all the
distractions of office
chat," says Kirk.
Unlike mos~ empire-building entrepreneurs, Phil tC~rk- Was:.:.;" Kirk spent_ I t year~ at Boeing Corp.,''bur rcouldn't-standS:.,.
dispirited when his commercial-aircraft consulting firm at- the politics of a corporate culture," he~saym In 1975
tracted so much business that heneeded to hire help. Kirk, 46,
was ensconced in the solitary splendor of an office in the base-
ment of his Redmond, Wash. home and had no desire for com-
pany. "Hiring and managing employees is a hassle," he says.
just prefer working on my own."
Kirk compromised by hiring two employees and putting
them four miles away in a downtown Redmond office. Daily
phone calls and occasional visits there keep him in touch. But
his business--designing tow. cost ways to modernize aging
commercial planes--generates reams of data. So Kirk's lifeline
to co-workers is a $1,500 Xerox fax machine. "I couldn't af-
ford to wait hours for a memo, so it's perfect," he says.
To solve intricate engineering puzzles, Kirk relies on his
$5,000 Haupauge computer while using a $1,300 NEC laptop
computer to jot notes on the go. A $1,700 Hewlett-Packard
Laser Jet printer for documents and a $1,500 HP PaintJet
printer for color diagrams round out the collection.
and started an aircraft consulting business.with fOur Parme~i
But it expanded too rapidly, says Kirk, and'failed in the tailT~
wind of an industry slump in the Iate'70s. : -: ' ~'
Undeterred, Kirk set up a low-cost haven for his own entre-_~[
preneurial brainstorming in the three-bedroom house h.e~.
shares with his'wife Elizabeth, 45~ Bom eight Years ago,.~
Kirk & AssOciates should report revenues of $500,000 thik~
year. Meanwhile,.Kirk has added four people to the Redm09,~~
office who work on short-term contracts and has turned over
the bookkeeping to Elizabeth. Another 33 contract workers--
many of them based in their own home offices--are scattered
throughout Washington, California and Arizona. The far-
flung team communicates by phone and fax.
Kirk begins each day religiously at 8 a.m., but quitting is not
so easy. "When your work is just sitting right there, it becomes
exceedingly difficult to stop," he says. "My wife usually drags
me away at 8 p.m." --Jeanne L. Reid
70 MONEY.JULY 1988
SPECIAL REPORT
the new darling of the technology market,
the SI,000 home fax machine (see page
86). enables you to zip documents any-
where in the world for just the price of a
phone call.
While technology has made the home
office increasingly viable, the changing
needs of workers and their employers
have made it necessary. Two-income
families can more easily maintain their
professional lives while raising children.
Indeed, a survey by Thomas Miller. a
consultant for the New York City-based
research firm Link Resources. found that
two out of three home workers are in
dual-career households and more than
half have kids under 18 at home. "These
people have to juggle to make all the
pieces fit." observes Miller.
Terri Pasquale of Denver can attest to
that. The mother of two. ages 5 and 3. she
runs a home accounting business with lit-
tle more than an Apple II+ computer
and Epson printer. "I wanted to stay with
my children and work," she says. "This
allows me the best of both worlds."
Those who toil at home cite other
benefits as well. notably increased pro-
ductivity and independence. Says Clau-
dia CohL editor-in-chief of Home Office
fUll-time mom manages a. hectic job 'i ii':
Wiltshire is so accustomed to
writing letters on her AT&T
personal computerthnt her
typewriter is now obsolete.
lhe IBM Pro printer works fine
for letters, but next on
Wiltshire's buy list is a printer
wide enough for spreadsheets.
Two years of working at ·
home have made Wiltshire
':~ an expert at juggling her
children and her secretarial
chores. "We have the best
of beth worlds," she says.
"'.~ CalYto~h'e/- bOss} ~h~l'~:~P:resses tWo. buttOn.oR her tele- ':'~-~t.T&T computer2 anlBM printer, an~ta cbpie:rg~t'/:~e~.. ~
phone..'Wha~ incb~'&~I/:mdoa'tlmow¢ however, is that th, manage his- ta,~ and:' investment -re~.0rds~' travel: sclie~'d '
bos.%Frank.iung/rs;,a~c°hsultant to international oil and en- correspondence. Th, two meet onlxt three times a weel~omag-
erg~', companies, woffis inan office 10 mi[es away. Both Wilt-
shire, 30. and Jungers,~j62, operate from their own home
offices, connected only bya:$56-a-month phone line.
. The arrangemerit [sideal for Wiltshire;~who is married and
has: tWo daughte~s~. S.~J~'and Molly, eight months. When
Sara arrived in 1984, Wiltshire juggled child rearing with a
full-time secretarial j0.~.~40.minutes away in downtown Port-
land_She succeeded onll~ because husband Texry,~ a 37-year-
ol&trncl~, assembly worker,worked the night shift and took
care of' the baby duri-z~g'the day. Both longed for her to be a
full-time mom. But they couldn't afford to- lose her $ t 9,700
income---especially since they wanted another child.
Jungers solved the problem by offering Wiltshire a $13,000
job that Would allow her t0~workat home as his personal secre-
tary. Beginning in April 1986. a room in the couple's three-
erage when she drives over to drop offd°Cuments.
Now, with her husband working during the d'ay~W~tshire
performs a balancing act of a different sort. "There
when Molly is in the bath, the phone is~ringing and~Feif_exaI
Express is at' the door," says Wiltshii'e~...'yrhat"s.whem'~.?g&s
hmry. ' Fortunately, Jungers ts on the road half the
her some flexibility. "If I'm lucky, th, kidswon't
and I can do an hour Of un/nterrnptedwbi'k from'6}3~
in the mo nin ' shesayS. ".B, yt ** 01de on
printer because WSso noisy. :':q-~ '-?~'}~:~:~;i_i:- --:
· Even with the:pressures of
shire says she would never accept a regular office
Being with the children is wonderful, she says. An~/.he
morning it's nice to answer a business call when I am stii[Mmy
Fuzzy slippers and robe."
MONEY.JUlY 1988 73
SPECIAL REPORT
Computing (which. significantly, started
out in life as Family Computing): "Kids
of the '60s saw that they could make
things happen. Nowthey say to corpora-
tions. 'Ifl can't do it with you, I'll do it my
own way.' These people want to have
greater freedom, avoid interruptions and
get more work done." Cohl herself en-
dorses flexible work styles: one of her se-
nior editors telecommutes, working from
a converted barn in Massachusetts and
communicating with other staff by
phone, modem and fax machine. He
shows up at the magazine's New York
City off~ce only a few days a month.
Not all bosses would be comfortable
with that arrangement, but employers too
can profit from the home-office boom.
Managers have found they can save on of-
fice space and benefits by turning some
workers loose and buying their services ~
la carte. "It's usually the highly skilled
ones who are sent home," says Julian Co-
hen of the American Home Business
Association. "Cost cutting has given
birth to the home-based consultant."
Of the entire home-work population,
Cohen estimates that almost half, or 13
million, derive their main income from a
home-based business or profession, an-
other 10 million take work home from a
regular job, about 3 million work in an of-
fice but run small businesses on the side,
and 600,000 or so telecommute.
But no one says you have to earn wages
to set up a home office. The business of
running a household and managing in-
vestments can be reason enough. Some-
times, you may even be tempted to
change careers. That's what happened to
Dr. Hillard Chemers of Chicago when he
equipped his home office with Lotus Sig-
.Tax breaks from your home office
nal (see page 80) to pull in up-to-the-
minute stock quotes and WarMachine~'~
software (Sl.200) to do a continuou,~
technical analysis of them. Now he
spends weekdays managing a six-figure
investment portfolio while working in the
emergency room only on weekends. "I
can program my computer to collect data
even if I'm not there, so I'm not chained
to it," he says. Chemers hopes to phase
out of medicine entirely within five years.
The desktop publishing industry would
not exist without low-cost laser printers
(see our suggested setup on pages 8243).
But if you aren't putting out a newsletter,
you may want the latest wrinkte--a
desktop scanner. With the Canon IX-t2
($945 plus $245 for an interface board),
you can capture images from photos and
drawings and insert them in any docu-
ment using Aldus PageMaker ($795 tbr
Besides affording a comfortable place to toil; your home office trash collection and the: like. You can even depreciate the
can saveyoua bundle-orrtaxes--provid&dthal:youplarrcare- ~ space allotted to your office. Such household deductions are::
fully to meet the IRS' recently toUghened-uprequirements. :~ : allowed'Only up to the mount of net income you earn from:
The IRS allows deductiOn~fora:homeofl~ceonl~ifyotruse yourhome business. Bucshould yourlOSSes exceed your galn~
it exclusively and regularly for business`. ~'Exclusively''means. ~ ~iin any particular year. you may carry them forward to future
that the area--whether it be.a single desk. a .r~ oran entire: ~ '~ears in which you earn enough at home to balance them. .
floor--is usec~ only: fot~::work ~L-:' ;~!:4':i~?~?~',-:5': ~::~J. ~7'~.~i:~ 37:?~ ': : :~' Office equipmem can be an-~
and: for .othing ?i ';' .... :' other source o 'm
not sleep or watch TXt there,.
less those are required by your
job. "Regularly" i~. loosely de-
fined but probably means you
labor there about three to four
times a week for 10 to 12 hours
in total. And "business, means
you must have shown a net
The IRS says your office must be a well-defined space.
since hardware is,considered a~
direct business expense (unlike;
household costs, which are in41
':'" direct), a loss here can be use~;:i
to offset any income.. If you ruR ·
your own business, you can de-:
duct up to $I0,000 a year for a~'
computer, fax or copier, or de-:
profit in at least three ortho Iast
five years, or else it will be considered a hobby,
If you are running y'ourown company from home, you most
likely meet those standards. But what if you are just~bringing
work home from the office? You may still be able to write off
your expenses if your job requires you to do this--and if you
can show the IRS a memo from the boss stating so.
Once you pass the tests for a write-off, calculate--either by
square footage or number of rooms~what fraction of your
home the office occupies. You can then deduct that fraction of
household expenses, such as mortgage interest and property
taxes (these are deductible anyway, of course, but you have to
assign a portion of them to your business in order to take the
other write-offs), rent, utilities, major repairs, maid service,
preciate them over five years..
Be warned, though, that should you ever sell your home, the
office could I~come a liability. Normally you can avoid capi%.
tal-galns tax on the profit from such a sale by rolling it into the'
purchase ofyour next house. But if you take home-office de~
ductions that year, you are required to pay capital-gains tax or'i:
a fraction of'the profit equal to the proportion of household:
expenses you deduct. To avoid this, simply convert the office
back to personal use before the year of sale.. : .
Finally, since home-office deductions may flag your return
for an audit, Julian Block, attorney and author of The Tax-
Wise Way to Buy, Own and Sell Your Home (Prentice-Hall~,
advises you to consult a tax professional, keep scrupulous rec-
ords and follow the law to the letter. --R.M.
74 MONEY,JULY 1988
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There's no need to
rush out and buy a
fax--until the lb'st
client asks for
your fax number.
the IBM PC. S595 for Apple's Macin-
tosh). Add a program like ReadPdght
(S595) and your scanner can read typed
documents directly into memorym
avoiding hours of tedious retyping when
a manuscript arrives on paper.
Not every home office must bristle
with such gear. James Delson of New
York City simply pemhed an Epson Eq-
uity III + computer on a board over two
file cabinets to turn a childhood hobby
into a business buying and selling toy sol-
diers that now has a $1 million inventory.
The trick is to choose the fight equipment
and space. Here are some suggestions:
First, check the local zoning regula-
tions to make sure you won't encounter
problems from the city. Next, select a
space to work in. If you want a tax deduc-
tion, devote a well-defined area solely to
the office (see the box on page 74).
Then lay ia some reliable equipment.
A good phone, a second phone line (or
call-waiting service) and an answering
machine are essential if your business de-
pends on malting or taking calls. You'll
also want a computer or dedicated word
processor (see the PC/AT clone on page
80). Besides generating letters, reports, fi-
nancial analyses and the like, the com-
puter can organize your life with an
inexpensive desk manager like Take
Charge! ($100). This program serves as
your appointment book, address book,
phone dialer (if you have a modem),
notepad, calendar, calculator, and even
alarm clock to get you up in the morning.
After that, your choices depend on
your tasks. Morris and Edna Goldberger
worked as children's book publishers
from their Nutley, N.J. home for two
years before they tired of running out for
copies and bought a Sharp Z-70 copier
($1,599) instead. An unexpected bonus,
says Edna: "We don't have to buy two
copies of the New York Times for both of
us to do the crossword puzzle."
MONEY.JULY 19~
As to fax machines, experts agree that
you don't need to rush out and buy one
yet--at least not until your first client
asks for your fax number. "Just say the
fax is out of order and then rush out and
buy one," advises Julian Cohen. One pos-
sibility: the Medbar Portafax III (pic-
tured on page 87), which is light enough
to go on the road, if your job requires it.
If you buy expensive hardware, make
sure it's insured. Most homeowners poli-
cies don't cover items used for business,
so ask your insurance agent about an inci-
dental business rider or a small-business
policy. (An Aetna rider, for example,
costs $8 per $1,000 of coverage annually.)
It might also be wise to inquire about li-
ability coverage if you bring clients to
your home, since if one of them falls and
breaks a leg, your home policy won't pay.
In spite of the many joys of working at
home, perhaps in your bathrobe or on
your sun deck, there are disadvantages.
Some people won't take you as seriously
as you would like, so train your kids not to
answer the phone or to do so in a busi-
nesslike way: And make sure the address
on your stationery, cards and envelopes
does not betray the fact that your office
doubles as your residence.
To be effective at home, you will also
need discipline--both to get down to
business in the morning, and to stop at
night. A more personal consideration,
but not one to take lightly: many work-at-
home people feel severely isolated when
they first cut loose from a big office. You
will need to cultivate the habit of arrang-
ing lunches, visiting clients and keeping
in touch with the grapevine.
Perhaps most important, make sure
your home career will go smoothly for the
entire family. Spouses and children
should understand not to interrupt when
you're working, but you must consider
their needs too. Thomas Miller finds this
one of the most rewarding aspects of
home employment. "It's nice that my kids
see what [ do," says Miller. "It reminds
me of old-style farm life." Moreover, as
anyone baffled by the convoluted instruc-
tion booklets that come with those new
electronic gadgets can testify, it helps to
have a kid around when you need one. "I
had to figure out how to install my fax
phone and program my computer," says
Miller. The solution? "My 12-year-old
son David did it for me." $
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MONEY.JULY 19~ 79
AMERICAN
PLANNING
ASSOCIATION
When Home Is
Where the Business Is
Before the Industrial Revolution. it was common to work in
one's home, and most neighborhoods were mixed-use dis-
tncts. Times have changed since Renaissance artisans made
shoes on the first floor and ate and slept in the back or upstmrs.
The old practice of traveling a few feet to work, however, is not
ontv ~,till alixe but gaining in popularity. Office workers are
using personal computers and modems to stay out of traffic
jams and the early morning scramble for breakfast and
clean socks. Artisans are still at home sewing and
repairing clothing, baking bread, or building
cabinets. Even traveling salespeople may
use their homes to set up appointments
and update their books.
Workers producing from
dens and basements can help
to solve some knotty land-use
problems. For instance, they are
staying off the highways during
peak hours, contributing to neither
traffic tie-ups nor auto pollution.
Instead, they boost the daytime
population in areas that might need a few
more eyes on the streets. Finally. home
workers often provide services, such as day
care or dental care. that neighbors may be
glad to have nearby.
Drawbacks
But home occupations create problems,
too. Some generate a steady flow of traffic,
causing parking problems and endangering
children playing in the area. If too many home
businesses require signs, or if proprietors store
goods outdoors, the area's residential nature may
change to that of a commercial or transitional
zone. An operation that began as an asset to the
neighborhood could outgrow its space before the
o,~,ner realizes it. For instance, expansion of a
neighborhood catering service could mean more
delivery trucks, parking spaces for clients and
employees, and extra demands on the utility system.
Local governments may also be concerned about
losing tax dollars because property in commercial
districts is taxed at a higher rate than that in residential
areas. This raises the question of fairness to other
merchants and business owners in the community. An
owner who does not have to pay extra rent or property
taxes has an advantage over competitors in a commercial
district. In Canada. tax laws allow local governments to tax
the portion of a house devoted to a business at a higher rate
than the rest of the building.
Definitions and Permits
Piano. Texas. defines a home occupation as "any acuvity
camed out for gain by a resident which results in the manufac-
ture or provision of goods and/or servtces and is conducted as
an accessory, use in a dwelling unit." The Mount Prospect.
Illinois. ordinance says. "A home occupation mat' include a
for-profit home business or a home office for a resident v, ho
may work for another employer, or contract or consult ~ ith
another company or individual." The term "cottage industrx"
is occasionally used. but can be confusing since it implie~ a
bigger enterprise than most home occupations.
Some municipalities control home occupations b? requmng
permits. Bellevue. Washington. has three types. Clas~ 1
permits are for occupations with no external indication~ that
the building is more than a home. Class 2 permits comer
service businesses with external indicators such as signs or
marked delivery vans. Class 3 permits cover famil? da? care
centers. People who want a class 1 permit merely register w zth
the city. but other permits require an approval proce.~s.
The Schaumburg, Illinois. ordinance requires a ,pecial
perrmt only when there will be more than one home
occupation on the site, or if the business invobes food
handling or the care and treatment of humans or
animals. The ordinance requires that all home occupa-
tions be inspected yearly for compliance.
Lists Versus Standards
All ordinances restricting home occupations are
intended to prevent them from becoming nui-
sances. This is not easy because different
occupations become nuisances in different
ways. Some generate noise and no traffic, others generate
traffic and noise but no fumes, and others are a problem
only occasionally. The zoning administrator must write an
ordinance that protects the neighborhood while being
flexible enough to allow a myriad of appropriate home
uses.
For years, zoning administrators used the laundry list
approach. Zoning codes named permitted occupations--
writing, typing, and selling insurance--and those not
permitted--repairing autos, practicing medicine, or running
a bed and breakfast. With the advances of technology and the
unlimited imaginations of those who want to work at home.
this method no longer works. Ordinances now set standards
describing how large a business may be and how it will
affect the neighborhood. Ordinances that combine both
methods are primarily based on the standards. However.
they are also likely to list several occupations
that clearly have little or no impact. These
might include telephone sales, free-
lance writing, or data entry. Another
list might cover problem occupa-
tions, those that will not be permitted
under any circumstances. This could
include beauty parlors, dance studios, or mortuaries.
Standards
Ideally. an ordinance should be flexible enough to let an
owner incubate a small business, but firm enough to push a
full-fledged enterprise into a neighborhood commercial zone.
One way to do this is to limit the percentage of space in the
home that can be dedicated to a business. While this
maximum is usually 25 percent, Piano. Texas. allows 20
percent, and Fairvie~' Heights. Illinois. allows 25 percent up
to 300 square feet of floor space.
William Toner. in Planmngfor Home Occupations (PAS
Report No. 3161, points out that this limit on floor space can
cause problems. For instance, children at a family day care
center will probably be permitted in most of the house, and
professionals might bant to hold group meetings that take up a
lot of space. In his report, loner suggests ways of developing
a time-space ratio. This could be hard to administer, however.
Thus. it ma',' be better for the zoning administrator to recog-
nize the ordinance's purpose and make reasonable exceptions.
Another common limit is on the amount and type of
business-related material that ma,~ be stored. The home is not
to be a warehouse, and neither the residents nor the
neighbors should be exposed to the dangers of hazardous.
flammable, or explosive material. Mount Prospect allows a
home business owner to store up to I00 cubic feet of
inventory indoors, about enough to fill a closet. Bellevue.
Washington. like most other communities, prohibits any
outdoor storage ot~ materials.
If the ordinance's primary concern is to protect a residential
neighborhood from becoming a commercial district, the
standards regarding a building's outside appearance are
particulart.~ important. Some ordinances, such as those from
Bellevue and Mount Prospect. forbid signs and any other
indications that a business is being conducted behind the front
door. Other municipalities, such as Eau Claire. Wisconsin.
limit the o,z'ner to one sign. no bigger than one square foot.
mounted flush against the wall or visible through a window.
The sign max not be illuminated.
Piano prohibits alterations that detract from the building's
re,ident~al nature. Schaumburg. Illinois. does likev, ise. and
also prohibits an ov`ner from building a separate entrance
ju,t to accommodate the needs of the business.
Standards also usually limit the number of outside
emplo.~ees who can work in a home. A feb' ordinances, such
as Eau Claire's. limit business employees only to immediate
familx members who live in the dwelling. A better way to
,ante this would be to omit the mention of family members.
limiting employees to members of the household, whether
blood kin or not. This is more in keeping with the lab's
purpose and protects the administrator from having to define
"immediate famil~ ."
Other communities, such as Bridgewater. Neb' Jersey.
allow up to two employees, while Plano, Texas. allows only
one. Piano also defines an employee as one who "receives a
wage. salary., or percentage of profits directly related to the
home occupation."
A key concern with the ordinance should be to limit traffic
and prevent residents from having to compete with business
employees and customers for parking places. Besides limiting
employees, this can also be done by limiting sales. It is
probably impractical to forbid any sales from taking place at
the residence. After all. any exchange of services for money
may be considered a sale. and Avon salespersons are also in
the business of selling. But the home st~ould not become the
local branch of the nearest department store. Piano solves
by barring the display of merchandise on the premises but
allowing incidental sales. The guitar teacher ma5' sell a
workbook to a student, but she cannot open a music store.
Piano also lets a business ob'ner fill telephone orders and gix e
customers Tupperware ordered at a part.~. Schaumburg
permits the sale of goods produced on the premises.
Zoning ordinances generally cover trucks, both those
owned by the home business proprietor anc~ delixerx xe-
hicles. Schaumburg is vehement in restricting delix erie,:
"There shall be no commodities sold or ,er', ~ce- rendered
that require receipt or deliver' of merchandise, good,, or
equipment by other than a passenger motor x ehtcle or bx
parcel or letter carrier mail service using xchlcles typically
employed in residential deliveries. Nc> deliveries bx sem~-
tractor/trailer trucks are permitted."
Plano prohibits trucks with business signs from being
parked on the street or within 30 feet of the curb. Eau Claire
says that business vehicles cannot be bigger than a pickup
and must be parked off the street.
Schaumburg and Plano require tt~at parking need, be
accommodated with off-street spaces or along the front of the
lot with* the home occupation. These ordinances also specif.~
that traffic shall not be increased beyond the amount
normall5' generated in a residential area. This specification
,,'ague and ma5' be difficult to enforce.
Zoning originated to protect residential areas from the
pollutants and irritations of factories. Home occupation
ordinances should continue this tradition b? forbidding the
use of toxic materials and b.x' discouraging the home
occupation from becoming a nuisance. The Fairx lev, Heights.
Illinois. ordinance states that there shall be no offens~xe
noise, xibration, smoke, dust. odors, heat. or glare spilling
over the propert.v line. Mount Prospect ab, o prohibits
television, radio, and electrical Interference. and fire hazards.
Rural Areas
The standards for home occupations in less populous area,
should be less strict. Fewer neighbors feel the impact~
increased traffic, noise, or x ibrations. An e~en more
important reason for relaxing the rule5 in agricultural area,
has to do with the local economx. Familx farm o~ nets. mo,t
of whom rel.~ on supplementar3 income, max v,ork at home
in order to stay ahead of debts. Also. if the closesl to,.~, n
more than a fe',~ miles a~a3. the rural home v`orker can
provide necessary services locally.
While most urban home occupation ordinances prohibit
animal hospitals and kennels, this use is more appropriate
the countr,,. Rural areas hax e enough space to accommodate
the odors and noises. ,x'hile alloy, lng the animals enough
room to exercise. East Earl Township. in Lancaster Count?.
Pennsylvania. also permits butcher shops, a dry good~, ~tore
with a limited displa3 area. and shops for metal,xorking.
woodworking, and craft manufacturing.
East Earl attaches a few standards, hov,'ex er. For instance.
only one building may be used to house the business, and onlx
2.400 square feet of floor area ma3 be dexoted to the business.
The business space must be separate from nonbusiness space
in an.,, building larger than 2.400 square feet. The ordinance
prohibits outside storage of products, equipment, and .,,upplies.
and requires that the business owner live on the property.
The ordinance also allows bed and breakfasts in single-family
detached units. {For more information about bed and
~)reakfasts. see Zoning News. December 1989.}
~ Enforcement
By definition, people working at home are hard to find.
Rather than populating commuter trains and busy
downtov, ns. they are tucked away in dens and workshops.
Often. this is not a problem. If the primary purpose of the
home occupations ordinance is to limit nuisances, an owner
running such a quiet ~hop is probably in compliance with
most of the ~tandards.
The most effective enforcement often comes from irate
neighbors. Mrs. Jones. who has had it with the noise from
3,Ir. Smith's woodworking tools, calls one city department
after another until she reaches the zoning administrator, who
informs Mr. Joneq that there is a code and that he is in
~iolation. Mr. Jones may be required to apply for a permit
for hiq operation or. if he has a permit, to comply with the
qtandards before it can be renewed.
~'hile this ad hoc method of enforcement probably works
better than any other, there should be an effort to educate the
public about home occupations, if only in the interest of good
~ill bet~'een Mrs. Smith and Mr. Jones. Mount Prospect
dexeloped a flyer written in plain language that defines home
occupations and lists the standards. It is available in the lobby
of the city hall. Zoning administrators should also consider
,ending press releases to local newspapers and distributing
pamphlets through civic organizations.
C.K.
Preservationists Play
Their Trump Card
Donald Trump's latest real estate deal has produced a
fire~torm of controversy in Palm Beach. Florida. The battle
lines have been drawn over the New York developer's plans
for Mar-a-Lago. a lavish Mediterranean-style castle built in
1927 by cereal heiress Marjorie Merriweather Post. Trump
bouo_ht'the castle and estate in 1985 for $5 million, in a deal
mufh heralded at the time because Post had spent $7 million
to build what is now viewed by many as a white elephant.
Trump. now in financial straits, plans to recoup some of his
losses by subdividing the 17 acres surrounding Mar-a-Lago
and building eight luxurious single-family houses, which he
hopes to sell for 55 to $7 million apiece.
Both Trump and his advisers apparently failed to recog-
nize the significance of the castle's status as a National
Historic Landmark and have been taken aback by the
formidable opposition mounted by the Palm Beach Land-
mark Preservation Foundation. Although final approval of
any development rests with the town council, the Preserva-
tion Foundation makes strong recommendations that carry,
real weight. Palm Beach has a tradition of conforming to
strict design guidelines and protecting its historic buildings.
On August 14, the foundation disapproved the
~ment on the grounds that Trump did not present a
~reservation plan with the development plan. The town
council upheld the denial at its October meeting. In the
meantime. Trump had submitted a different proposal for a
planned unit development incorporating 10 single-family
units. This plan has also been rejected because it v, as not
accompanied by a preservation plan.
Trump's attorneys, however, have stated that the request
for a preservation plan is unusual and unnecessary. They
ha~,e also noted that. since both development proposals
comply with the zoning regulations, there is no legal reason
to oppose them. Although they have threatened to sue. no
legal action had been taken by mid-November. Despite a
to~n council in,,~tation to do so. Trump also has not
submitted his plans in a more acceptable form.
National historic preservation organizations have backed
the local critics, who perceive a lack of concern b> Trump
for the historic and aesthetic importance of Mar-a-Lago. The
National Trust for Historic Preser~ atton has de,cribed the
plan as "ill-considered and insensitive." But a ,mall number
of sympathizers point out that neither the ,tare nor the federal
government can bear the expense of supporting the ca,tie.
and the town ~ould benefit from the ~ncreased tax ba,e the
development would create. With Trump already pa.~ ~ng
5300.000 yearly in property' taxes, ho,xe~er. Palm Beach
seems unmoved by' such concerns. F.D
The Ongoing Battle
of Gettysburg
A zoning battle is brewing over proposed new dexelopments
near Civil War battlefields in Gettysburg. Pennsyl~ ania. The
biggest controversy is over a proposed shopping center that
would interfere with views of the battlefield~ from the toga n
of Benner's Hill--many of which remain virtuall.,,
unchanged since 1863.
Since a Wal-Mart discount store opened earlier this y ear.
pressure from developers has grown. One developer has
proposed a 320.000-square-foot shopping center that ,aould
abut the battlefield. Proposed for a 75-acre site. the Mark
Development Company's Gettysburg Commons would
feature 25 to 30 stores, a cinema, and 1.900 parking spaces.
Some of it would fall directly within the 12.000-acre
federally protected Gettysburg Battlefield Historic District.
which encompasses the 6.000-acre Gettysburg National
Military Park. According to a historic preservation official in
Adams County. this development has not won approval.
Gettysburg Borough and the surrounding townships ha,,e
long been at odds over the nature and amount of develop-
ment that should be permitted, with some municipal officials
contending that the economy has suffered because of
attempts to keep the park pristine. Developers say that
preserving the park by discouraging growth in adjacent sites
is too high a price to pay when average annual income in the
county is far below that of other counties in the eastern half
of Pennsylvania.
According to the Baltimore Evening Sun. Richard H.
Schmoyer. planning director for Adams County. believes that
protecting the views throughout the park may be jeopardizing
the entire area's economy. U.S. Rep. Peter H. Kostmayer.
however, cosponsored legislation last year that would
significantly expand the boundaries of the military park and
its buffering zone. stating, "We cannot permit the desecration
of one of the most hallowed sites in America. There are
plenty of places in which to build shopping centers, but
allowing one to be built within sight of the Gettysburg
DAN DONAHUE
FROM: DOUG SANDSTA /
DATE: SEPT. 21, 1993 / .
SUBJECT: STATE LICENSE A~gLICATION FOR "CURRENCY EXCHANGE"- 3548 Winnetk~
I received the attached documents from the State Department of
Commerce, for our local review. Note that the Legislature changed the
law in it's 1992 session to require any applicant for this license
to submit all of the information to "the governing body of the municipality."
We, now have the obligation to approve or deny the request within 60 days.
In 1992, we were notified and cmnducted a staff-level review, before "approving."
There are three issues before us:
A. Are there any facts that raise questions about the specific
business at 3548 Winnetka ? How many police calls did it have
since last December ?
B. Given recent publicity about this type of business and serious
problems that have developed in some cities, do we want to
reconsider the policy d~cision to act on ali. future applications
at a staff level with little factual basis for review ?
C. Is there a need for either zoning or licensing standards and
code amendments to establish certain limits or controls on a
business of this type ?
Today, the matter seems to be routine. But what about the next one
or a cluster of these in the same neighborhood in the future ? Please advise.
OFFICE OF THE COMMISSIQ~..
STATE OF MINNESOTA
DEPARTMENT OF COMMERCE
133 EAST 7lb .~TREET
3T. PALL. MN 55101
612 296-4026
F.AX: 012 296-4328
Certified Mail
September 13, 1993
Douglas Sandstad
City of New Hope
4401 Xylon Ave. No.
New Hope, MN 55428
Dear City Clerk:
Cash Etc. (#9000244)(renew) has made application for a currency
exchange license to operate at 3548 Winnetka Ave. No., New Hope,
MN 55427. Pursuant to Minnesota Statute 53A.04, we are
forwarding a copy of the complete apPlication to the city of New
Hope in care of your office for your review.
Please note that Minn. Statute 53A.04, which became effective on
April 24, 1992, requires the Department of Commerce to submit any
application for licensure as a currency exchange to the governing
body of the municipality in which the currency exchange proposes
to conduct business. The law further requires the governing
municipality to render a decision regarding issuance or denial of
the license within 60 days. Your cooperation in forwarding this
information to the proper unit within your organization will be
appreciated.
If you have any questions please contact Cheryl Connors,
Enforcement and Licensing Division, Minnesota Department of
Commerce at 612/296-6319 (extension 3012).
Sincerely,
JAMES E ULLAND
Commissioner of Commerce
Enforcement & Licensing Division
612/296-6319 (extension 3012)
AN EQUAL OPPORTUNITY EMPLOYER
: ~': STATE OF MINNESOTA 133 EAST 'th STREET
"'-~ 612/296-6310
OFFICE OF THE COMMISSIONER DEPkRTMENT OF COMMERCE FAX: 612.296-4328
CE ?C,C;0~44 ~ -
NE~.¢ ,'-t0PE MN 55,4~7-'2,0C~C' *~ .~
. .'& S~'~
Dear Currenc]~ Exchange:
July 1993
This letter will serve as your renewal billing for your Minnezota Currency Exchange license which will
expire December 31, 1993. Please read and follow the.~ instructions carefully.
PLFASE NOTE: According to a change in MN Statute 53A regarding the licensing of currency
exchanges, both state and local approval of issuance and renewal of a currency exchange license
is now required. Since this process may take up to 120 days, you should return the required
forms immediately. The statute also requires all currency exchange locations previously licensed
as branch offices to now be licensed as separate entities.
In order to renew your Currency Exchange license, you must comply with the following instructions:
Please sign, date and return this billing _t~ostmarked before 12:00 midnight September 1, 1993
with a check, cashiers check, or money order only in the amount of $50.00 for each location
to be renewed. Cash cannot be accepted. Make your payment payable to the Minnesota
Commerce Department.
e
F-41¢h Currency Exchange location MUST attach a current fee schedule used for cashing
checks, money orders, or traveler checks. The schedule ~ the type of check cashed,
the fee that is charged, and whether or not the fee varies depending on the amount of the check.
e
Each Currency Exchange location MUST attach a surety bond in the amount of $10,00~ (on the
form provided). The bond must be effective January 1, 1994 until December 31, 1994.
Each Currency Exchange location MUST attach a current and ~ list of ALL owners,
partners, officers, director~, stockholders (owning 10 percent or more of the corporate stock)
as well az ALL employees with the authority to exercise management or policy control over the
company. A ~ background investigation by the Bureau of Criminal Apprehension
(form provided) must be submitted on EACH of these individuals, along with the renewal
billing.
If all required forms are not fuRRy completed and returned to our office with__oaymem by September
1, 1993, your license will lapse effective December 31, 1993. If your license does lapse, you must
reapply for a license using the license application form and paying the new license fees.
ALL the information requested above must be attached to the renewal bilhng before returning the billing
to our office. If you have any questions or need additional information, please feel free to contact the
Licensing Unit at (612) 296-6319 (option tM).
,. c smo
(612) 296-6319 ~re~ident, Parmer or Owner's S[g-natUre Dale
AN EQUAL OPPORTUNITY EMPLOYER
BOND NUMBER 238417
STATE OF MINNESOTA
DEPARTMENT OF COM~tERCE
CURRENCY EXCHANGE SURETY BOND
KNOW ALL M~N BY THESE PRESENTS, THAT TALLEY ENTERPRISES, INC. DBA CASH ETC.
(Name of Currency Exchange)
a MINNESOTA CORPORATION
(description or torm ot business organizatIon, including State o~ Incorporatzon)
with business office at
3548 WINNETKA AVENUE N.~ NEW HOPEt MN 55427
(Street Address, City, State, Zip of office covered by this bond)
as Principal and AMERICAN BANKERS INSURANCE COMPANY OF FLORIDA (Name o~ Surety)
a corooration duly orRanized under the laws of the State of FLORIDA , which
is authorized to engage in the business of ipsu~ance in th6~-f~--o£ Minnesota, as
Surety, are hereby Herd and firmly bound to the Department of Con~erce of the State
of Minnesota, in the sum of TEN THOUSAND DOLLARS ($10,000). Principal and Surety
bind themselves, their representatives, successors and assigns, jointly and
severally by these presents.
The parties further agree that:
1. The purpose of this .obligation, which is ~equire~ b% Minnesota Statutes,
Section 53A.0B is to secure the compliance by Principal with the terms of Minnesota
Statutes, Sections §3A.02 to §3A.08, and.any other le$&l obligations arising out of
the Principal s conduct as a currency excnanse.
2. This bond is for the benefit of the State of Minnesota and all persons
sufferin$ damaSes ~ reason of Principal~s failure to comply with Minnesota
Statutes, Section A.OZ to 53A.08 or other lesal obligation arising out of
Principal's conduct as a currency exchange.
3. If Principal shall violate Minnesota Statutes, Sections §3A.02 to 53A.08 or
other legal obligation arisin~ out of its conduct as a currency exchange the
o is,ioner of a, ,ll a, any a r , lt
violation, shall have, in addition to all other legal remea~es, a rzght or c
on this bond in the nnme of the injured party for loss sustained by the injured
party.
4. This bond shall be in effect from JANUARY 1, 199~tntil December 31, 19 94
Signed and Sealed this 25TH
MERICAN BANKERS INSURANCE COMPANY OF FLORIDA
day of AUGUST , 19 93 ....,
T~LLEY ENTERPRISES~ INc. DBA CASH ETC. - - (~ of Currency Exchange)
(Nm~ ot Surety)
(s~gnat~r~ ot Pres ' , ,
or Sole Proprietor)
THOMAS H. FA~I~LD
********** ****************************** FOR OFFICE USE ONLY
Approved as to form and execution by Dennis J. Poppenhagen, Director of Licensing
DENNIS J. POPF~Nt'~AGSN (Date)
iAMERICAN BANKERS INSURANCE COMPANY OF FLORIDA
11222 Quail Roost Dnve, Miami. FL 33157-6596
TO BE AT~AC~ TO
BOND
POWER OF ATI'ORNEY NO. 238417
KNOW .a~LL MEN BY THF~4~W~q'5: ~ ~ _ _
~at ,~%IE~N ~N~ INSU~NCE COMP,~N~' OF FLO~DA. a co~rauon or' ~e State of Florida. ~oes ~ere~v m~e
apb)mt ~S t. Fairfield, ~chael Willi~, Fe~ J. ~ugea
~ts tree and la~l attorney-m-fact, wt~ ~ll ~wer and authored', for and on beh~ of ~e Comply ~ sure~', to execute and dehver ~d
~e seal of the Comply ~ereto, ff a seal is required, on ~nds. undert~ngs, reco~tzances, consen~ of sure~ or o~er written
in thc nature thereof. ~ follows:
.&N~ .~ .~L BO~S .~ND UN~E~NGS
~E LL~ILI~' OF ~E COMP.~NS' S~LL NOT EXCEED S 2~0,000 (~O B~dred ~ifty ~ous<d & 00/100)
~d to bind .MME~C.~N B~N~ [NSL'~NCE COMP~N~' OF FLO~DA. a certified copy of which ts hereto ~nexed and made a p~ o(
Po~'er ot Attorney
IN WI~ ~E~OE .&ME~C~ B~N~ [NSL'~NCE COMP,~' OF FLO~DA h~ cau~d ~ pr~en~ to be s~ned and
by ~cstmfle by l~ duly au~orized o~cers ~d i~ co.rate ~M to ~ hereunto ~ed ~ts 23~ day of ~Y. 199L
AMEriCAN BANKE~8 INSURANCE COMPANY OY ~LO~IDA
By:
NOTARY PUBLIC
Before me personally appeared Jason J, Israel and Sanford Neubarth. to me wellknown, and known to me to be the indiv~duaJs described
in and who executed the foregoing instrument as Semor Vice President and Secretary of the above-named AMERICAN BANKERS LNSURANCE
COMPri,NY OF FLORIDA. a corporation, and severally acknowledged to and before me that they executed such instrument as such Senior '*'ice
l-resident and Secretary., respectively, of said corporation, and that the seal affixed to the foregoing instrument ts the corporate seal of sad
corporation and that it was affixed to said/nstrument by due and regular corporate authority, and that said instrument ts the free act and deed
of said o ration. .... .
Sworn to before me this 23rd day of May, 1991. ~ __/' . ~"~
NOTARY PUBLIC STATE OF FLORIDA '~~~~c~
MY COMMISSION EXP. FEB, 21, 1995
BONDED THRU GENERAL INS. UNO. NOTARY ;USLIC ' ~4~'~' --
RESOLUTION OF THE BOARD OF DIRECTORS OF
AMERICAN BANKERS INSURANCE COMPANY OF FLORIDA
~'I-[EREAS, it is necessary for the effectual tramaction of business that this Company appoint agents and attorneys w~th power ~nd
authority, to act for it and in its name m the states and territories of the United States and in the provinces of the Dominion of Canads.
RESOLVED. that this Company do and it hereby does authorize and empower its President, Executive Vice Presidents or Senior Vice
Presidents in conjunction vath its Secretary or one d its Designated Signers, under its corporate seal, to appoint any person or persons as ~ts
act as its true and lawful attorrney-in-fact, to execute and deliver any and all contracts, guaranteeing the fidelity of persons holding positions
of public or private tnmt, guaranteeing the performances of contracts other than insurance policies and executing or guaranteeing bonds and
undertakings, requ/red or permitted in all actions or proceedings, or by law allowed: and
FURTHER RESOLVED. time the signature ol any officer authorized by Resolutions of this Board and the Company seal may be affixed by
facsimile to any power of ~ttot'lley or special power of attorney or certification of either given for the execution of any bond. undertaking,
recognizance or other writte~ ~ in the nature thereof: such signature and seal. when so used being hereby adopted by the Companv
as the original signature of ~ officer and the original seal of the Company, to be valid and binding upon the Company with the same force
and effect as though marlually ~ed.
I certify, the above is a true copy of a Re~iution adopted at the meeting of the Board of Directors of AMEPJCAN BANKERS INSURANCE
COMPANY OF FLORIDA.stria of°n FIoridaMaY 22, 1991.
Count~ of Oad~
SECRI=TAR¥
I hereby certify that the above Power of Attorney remains in full force and effect: and furthermore, that the Resolution of the Board ot
DirL~§Ti~is of AMERICAN ~SII~ISURANCE iCgOM~ry OF FLORID& dated May 22, 199t. remains in full force and effect as of' th,s
day of . .,..?~,,.,~\.
· '. ~
Any instrument issued in excess or' me penalty amount stated above m totally void without/lly validity.
A5215-t092
STATE OF MINNESOTA
BUREAU OF CRIMINAL APPREHENSION - CJIS SECTION
RECORD AND IDENTIFICATION SERVICES
1246 UNIVERSITY AVE, ST PAUL, MN 55104 - 4197
(612) 642-0670
Date: 082393
Name: TAHLMAN, KATHALENE B
DOB: 042746
This letter certifies that a search has been made of the criminal
hi~tory files m~intained in Minnesota by the Department of Public
Safety, Bureau of Criminal Apprehension.
The search was performed by Name and Date of Birth.
The result of this search indicates that no record was found based
on the above search criteria.
This does not preclude the possible existence of additional
information located at county or city levels.
Sincerely,
Mark K. Shields
SuPerintendent __
Dy: Karen McDonald ~---
Director
Criminal Records and
Identification Services
OFFICE OF THE
STATE OF MINNESOTA
DEPARTMENT OF COMblERCE
133 ~A~'T ?m STREET
.Tr. PAUL. MN SSI01
&t 2/2~-6J 19
FAX: 612,'29~,32~
TO ~
Dept. of Public Safety
Bureau of Criminal Apprehension
1246 University Avenue
St. Paul, MN 55104
Request for Background Check
Currency Exchange License (Chapter 53A)
to the Minnesota Department of Commerce for a Currency Exchange
license under the provisions of Minnesota Statute 53A.
If I am not the applicant for licensure ! am either ~n .~ficer~ a
limited/general partner, a manager or a shareholder ano ~11 o~n ~,n
percent (10%) of ~he stock. Or, I em an employee with t~e autBoricy
to exercise managemen~ or policy control over the company.
I hereby request the Bureau o~ Criminal Apprehension to conduct a
background investigation of me ~or licensing purposes as required
under Minnesota S~a~ute 53A.
R~S IDENTiAL ADDRESS
~p~ of Public Smfo~y, B~roa~ of Criminal Apprehension VK~UK ~
background chock which should accompany :~s zorm. maxm uae
paynim ~o ~p~ ~tic Smfe~y.
NOTE~ BUREAU OF CRIMINAL APPREHENSION. PLEASE ENCLOSE COM~LSTSD
BACKGROUND INVESTIGATION IN A SEALED ENVELOPE ALONG WITH THIS
~ETTSR.
EMPLOYER