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06.b UDC Amendment for Nonconforming Buildings - PC Staff Report_AgendaPacket 1 | Page Date of Meeting: February 10, 2026 To: Chair Loeffler and Members of the Planning Commission From: T.J. Hofer, Consultant City Planner Re: UDC Amendment Regarding Nonconforming Buildings and Structures City staff have prepared an ordinance amendment to amend standards related to nonconforming buildings and structures. BACKGROUND At the October 7, 2025, Planning Commission meeting, staff presented a memo summarizing the statutory rights of nonconforming uses and the additional standards in the Unified Development Code (UDC) governing expansions of nonconforming buildings and structures. Within that memo, staff detailed concerns that the City Attorney had expressed regarding a standard related to replacement and alterations of nonconforming buildings and structures. Repair, replacement, restoration, maintenance, or improvement of nonconformities are allowed to be continued by statute, provided the exceptions detailed in statute are not triggered. In addition to the issues identified by the City Attorney, members of the Planning Commission identified concerns related to expansion of nonconforming buildings and structures. Expansion of nonconforming buildings and structures is not a right allowed by statute, but the city allows expansion through an administrative permit or conditional use permit based on the type of use. Concerns were expressed that the intent of the expansion allowance was not being met and that some expansions allowed by administrative permit should have required a variance. Staff brought this item to the City Council at the October 20, 2025, where the Council confirmed that the administrative permit was being administered as intended. At the meeting, staff noted that they intended to amend the standards to address the concerns of the City Attorney, believed changes to the existing standards could address concerns expressed by the Planning Commission and Council, and improve the process. OVERVIEW OF DRAFT ORDINANCE Staff have drafted an amendment to update the existing standards regarding nonconforming buildings and structures. The ordinance uses red strikethrough for deletions, red underline for additions, and green strikethrough/underline for relocated text. Subd. 3 Nonconforming Buildings and Structures. (A) In accordance with Minnesota State Statute 462.357 Subd. 1e., nonconforming buildings and structures may be continued, including through repair, replacement, restoration, maintenance, or improvement, but not including expansion, unless: Replacement. A lawful nonconforming structure which is removed, destroyed or 2 | Page altered by any means to the extent that the cost of repair or replacement would exceed fifty percent (50%) of the Assessed Value of the original structure shall not be replaced, except in conformity with this Chapter. If a replacement structure cannot be placed on the lot meeting all current standards, the variance procedure must be followed. For the purposes of this Chapter, the term “Assessed Value” shall mean the market value of the property as determined by the current records of the City Assessor for the year in which the damage was done. I. The occupancy or use of the building and structure has discontinued for a period of more than one year. (B) II. Restoration of buildings destroyed by fire or peril damaged to the extent of less than 50% of its market value, as indicated in the records of the county assessor at the time of damage, shall be allowed, provided a building permit has been applied for within 180 days of when a property is damaged. Unless a building permit has been applied for within 180 days of when a property is damaged, nNo lawful nonconforming building or structure which has been destroyed by fire or other peril to the extent of greater than 50% of its market value, as indicated in the records of the county assessor at the time of damage, shall be restored, except in conformity with the regulations of this Chapter. If a building permit has been applied for within 180 days of when the property is damaged, the City may impose reasonable conditions when issuing the permit in order to mitigate any newly created impact on adjacent property or water body. The proposed amendment removes the standard related to replacement that limits the amount of replacement allowed and replaces the language with the language established in statute. While the repetition of the statute is not necessary for enforcement, including it here removes the barrier for users to find the language in statute and allows for easy reference within the code. Staff have also separated the two exceptions for readability. (B) Alterations. Alterations to (e.g., repair, normal maintenance, remodeling) of a lawful nonconforming building or structure that are valued at 50% or less of the appraised value of the original nonconforming building or structure may be undertaken provided: I. The alterations do not expand the building size. II. The alterations do not change the building occupancy capacity, or parking demand, or sewage treatment requirements. III. The alterations do not increase the nonconformity of the building or the use. The rights provided in statute for nonconforming buildings and structures allows for repair, restoration, maintenance, or improvement which would all be considered types of alterations. Statute sets no limit on the amount of alteration allowed. Per the advice of the City Attorney, the 50% limit has been removed. Staff believe that the additional standards I., II., and III. are enforceable as all of these would be considered expansions in either the structure itself or the intensity of the use related to the structure. 3 | Page (C) Expansion of Nonconforming Buildings or Structures. I. Application. a. Agricultural or Single Family Residential Buildings and Structures. The expansion of lawful nonconforming agricultural or single family residential buildings and structures may be approved through the with an Administrative Permit process subject to the provisions of Section [153.500.050 and 153.500.060] of this Chapter, provided that the standards in this section are met.: b. Commercial, Industrial, Public, Semi-Public, and Multiple Family Structures. The expansion of lawful nonconforming commercial, industrial, public, semi-public, and multiple family structures may be approved with a conditional use permit, provided that the standards in this section are met. Staff have reorganized the section for nonconforming buildings or structures. The qualifying requirements that exist for all uses are essentially the same, however, “Agricultural or Single Family Residential Buildings and Structures” require an administrative permit, and, “Commercial, Industrial, Public, Semi-Public, and Multiple Family Structures” require a conditional use permit. As the requirements are the same, reorganizing the section removes unnecessary duplication of text. II. Requirements. a. The nonconformity is due to height, setback, or lot area. The first three standards are essentially rewritten and clarified versions of the standard that exists in the ordinance now. Shown later in the document, the current standards state, “yard setback.” A “yard setback” is not defined by the UDC and any setback can be considered to create a “yard” as setbacks generally create areas that cannot be improved. Removing the term yard provides greater clarity. b. The existing structure remains in place, and is expanded. The expansion does not increase the nonconformity of the building or the use. The existing standards states that the structure “remains in place,” however, replacement is a right allowed by statute. If an applicant wishes to replace a structure and expand it, this could be done across two applications, so rewriting this standard to allow for the combination is sensible. c. The expansion complies with all other performance standards for the lot, use, and building or structure. d. If the expansion results in the removal or loss of significant trees as defined by this ordinance, the removed or lost significant trees shall be replaced in accordance with the replacement requirement established in Section [153.400.070], subject to the additional following standards: i. A tree survey shall be required with the application for the Administrative Permit and shall be prepared with the specifications detailed in Section [153.400.070]. 4 | Page ii. Replacement of the trees shall be based on the schedule established in Table 153.400.070-1. iii. Replacement required due to the expansion of a nonconforming building or structure shall be done on site and not eligible for contribution to the Tree Fund as described in Section [153.400.070 Subd. 2. V.]. iv. The performance guarantee required by Section [153.400.070 Subd. 2 XIII.,] shall not be required. Staff received significant public concern following a recent replacement of a nonconforming structure on 182nd St. One of the concerns was the loss of large trees and canopy on the lot. Staff propose these replacement standards to mitigate canopy loss. Although reestablishment takes time, replacement will provide long‑term benefits to surrounding properties. e. Long term sewage disposal needs can be met. f. Expansion of principal or accessory buildings found to be nonconforming only by reason of height, yard setback, or lot area may be permitted provided the structural nonconformity is not increased and the expansion complies with all other performance standards of this Chapter. An Administrative Permit shall not be issued under this Section for a deviation from other requirements of this Chapter unless variances are also approved. g. The Zoning Administrator finds that any such expansion will not have external negative impacts upon adjacent properties or public rights-of- way. g. Long term sewage disposal needs can be met. e. II. Commercial, Industrial, Public, Semi-Public, and Multiple Family Structures. Lawful nonconforming commercial, industrial, public, semi- public, and multiple family structures may be expanded on the same lot upon approval of a conditional use permit, provided that: a. Expansion of principal or accessory buildings found to be nonconforming only by reason of height, yard setback, or lot area may be permitted provided the structural nonconformity is not increased and the expansion complies with all other performance standards of this Chapter. A Conditional Use Permit shall not be issued under this Section for a deviation from other requirements of this Chapter unless variances are also approved. b. The request for Conditional Use Permit shall be evaluated based on standards set forth in Section [153.500.050] of this Chapter. c. Long term sewage disposal needs can be met. d. (D) Buildings or Structures in the Floodplain Overlay District. Notwithstanding paragraphs (A), (B), and (C) and (D) above, any restoration, alteration, replacement, repair, or expansion of a building or structure located within the floodplain overlay 5 | Page district shall be regulated to the extent necessary to maintain eligibility in the National Flood Insurance Program, and in no case shall increase potential flood damage or increase the degree of obstruction to flood flows in the floodway. Changes in the hierarchy of the standards are necessary as standards for structures in the floodplain should not be written so as to appear that they are only applicable in some instances. ANALYSIS Staff Analysis Staff believe the additional standards proposed in the ordinance amendment will provide greater clarity regarding the rights of nonconforming buildings and structures as well as address some concerns that have resulted from the expansion of nonconforming structures in the past. COMMISSION ACTION The Planning Commission can do one of the following: 1. Recommend approval, with or without conditions, of the attached resolution. 2. Recommend denial, with findings, of the attached resolution. 3. Table the request for further review/study. RECOMMENDATION Staff recommends that the Planning Commission open a public hearing and receive any and all comments from the public. Staff recommend the Planning Commission recommend approval of the ordinance amendment regarding nonconforming buildings and structures, with any amendments deemed necessary: Motion to recommend the City Council approval of the attached ordinance to amend 153.500.110 of the Unified Development Code regarding nonconforming buildings and structures, with the findings and conditions described within the staff report. Attachments A. Draft Ordinance 2026-XX Amendment Regarding Nonconforming Buildings and Structures B. Unified Development Code 153.500.110 Nonconformities C. Memorandum on Nonconforming Structures, dated October 7, 2025 Added Text: Red Underline Removed Text: Red Strikethrough Moved Text: Green Striketrhough and Underline Page 1 of 4 CITY OF SCANDIA ORDINANCE NO.: 2026-XX AN ORDINANCE AMENDING THE SCANDIA UNIFIED DEVELOPMENT CODE 153.500.110 REGARDING NONCONFORMING BUILDINGS AND STRUCTURES The City Council of the City of Scandia, Washington County, Minnesota hereby ordains: Section 1 Amendment. The City of Scandia Unified Development Code (“UDC,” “Development Code,” or “Code”), Chapter 153.500.110 Nonconformities Subd. 3 Nonconforming Buildings and Structures, shall be amended by adding the underlined text and deleting the stricken text as follows: Subd. 3 Nonconforming Buildings and Structures. (A) In accordance with Minnesota State Statute 462.357 Subd. 1e., nonconforming buildings and structures may be continued, including through repair, replacement, restoration, maintenance, or improvement, but not including expansion, unless: Replacement. A lawful nonconforming structure which is removed, destroyed or altered by any means to the extent that the cost of repair or replacement would exceed fifty percent (50%) of the Assessed Value of the original structure shall not be replaced, except in conformity with this Chapter. If a replacement structure cannot be placed on the lot meeting all current standards, the variance procedure must be followed. For the purposes of this Chapter, the term “Assessed Value” shall mean the market value of the property as determined by the current records of the City Assessor for the year in which the damage was done. I. The occupancy or use of the building and structure has discontinued for a period of more than one year. (B) II. Restoration of buildings destroyed by fire or peril damaged to the extent of less than 50% of its market value, as indicated in the records of the county assessor at the time of damage, shall be allowed, provided a building permit has been applied for within 180 days of when a property is damaged. Unless a building permit has been applied for within 180 days of when a property is damaged, nNo lawful nonconforming building or structure which has been destroyed by fire or other peril to the extent of greater than 50% of its market value, as indicated in the records of the county assessor at the time of damage, shall be restored, except in conformity with the regulations of this Chapter. If a building permit has been applied for within 180 days of when the property is damaged, the City may impose reasonable conditions when issuing the permit in order to mitigate any newly created impact on adjacent property or water body. (B) Alterations. Alterations to (e.g., repair, normal maintenance, remodeling) of a lawful nonconforming building or structure that are valued at 50% or less of the Added Text: Red Underline Removed Text: Red Strikethrough Moved Text: Green Striketrhough and Underline Page 2 of 4 appraised value of the original nonconforming building or structure may be undertaken provided: I. The alterations do not expand the building size. II. The alterations do not change the building occupancy capacity, or parking demand, or sewage treatment requirements. III. The alterations do not increase the nonconformity of the building or the use. (C) Expansion of Nonconforming Buildings or Structures. I. Application. a. Agricultural or Single Family Residential Buildings and Structures. The expansion of lawful nonconforming agricultural or single family residential buildings and structures may be approved through the with an Administrative Permit process subject to the provisions of Section [153.500.050 and 153.500.060] of this Chapter, provided that the standards in this section are met.: b. Commercial, Industrial, Public, Semi-Public, and Multiple Family Structures. The expansion of lawful nonconforming commercial, industrial, public, semi-public, and multiple family structures may be approved with a conditional use permit, provided that the standards in this section are met. II. Requirements. a. The nonconformity is due to height, setback, or lot area. b. The existing structure remains in place, and is expanded. The expansion does not increase the nonconformity of the building or the use. c. The expansion complies with all other performance standards for the lot, use, and building or structure. d. If the expansion of the structure or improvements to the site required for the expansion results in the removal or loss of significant trees as defined by this ordinance, the removed or lost significant trees shall be replaced in accordance with the replacement requirement established in Section [153.400.070], subject to the additional following standards: i. A tree survey shall be required with the application for the Administrative Permit and shall be prepared with the specifications detailed in Section [153.400.070]. ii. Replacement of the trees shall be based on the schedule established in Table 153.400.070-1. iii. Replacement required due to the expansion of a nonconforming building or structure shall be done on site and not eligible for Added Text: Red Underline Removed Text: Red Strikethrough Moved Text: Green Striketrhough and Underline Page 3 of 4 contribution to the Tree Fund as described in Section [153.400.070 Subd. 2. V.]. iv. The performance guarantee required by Section [153.400.070 Subd. 2 XIII.,] shall not be required. An escrow equal to $100 per caliper inch of tree removed shall be held by the city for a period of two years. The escrow shall be held by the city and shall be used to replace any damaged, diseased, dying, or removed tree required by this section if a property owner does not replace the damaged, diseased, dying, or removed tree. e. Long term sewage disposal needs can be met. f. Expansion of principal or accessory buildings found to be nonconforming only by reason of height, yard setback, or lot area may be permitted provided the structural nonconformity is not increased and the expansion complies with all other performance standards of this Chapter. An Administrative Permit shall not be issued under this Section for a deviation from other requirements of this Chapter unless variances are also approved. g. The Zoning Administrator finds that any such expansion will not have external negative impacts upon adjacent properties or public rights-of- way. g. Long term sewage disposal needs can be met. e. II. Commercial, Industrial, Public, Semi-Public, and Multiple Family Structures. Lawful nonconforming commercial, industrial, public, semi- public, and multiple family structures may be expanded on the same lot upon approval of a conditional use permit, provided that: a. Expansion of principal or accessory buildings found to be nonconforming only by reason of height, yard setback, or lot area may be permitted provided the structural nonconformity is not increased and the expansion complies with all other performance standards of this Chapter. A Conditional Use Permit shall not be issued under this Section for a deviation from other requirements of this Chapter unless variances are also approved. b. The request for Conditional Use Permit shall be evaluated based on standards set forth in Section [153.500.050] of this Chapter. c. Long term sewage disposal needs can be met. d. (D) Buildings or Structures in the Floodplain Overlay District. Notwithstanding paragraphs (A), (B), and (C) and (D) above, any restoration, alteration, replacement, repair, or expansion of a building or structure located within the floodplain overlay district shall be regulated to the extent necessary to maintain eligibility in the National Flood Insurance Program, and in no case shall increase potential flood damage or increase the degree of obstruction to flood flows in the floodway. Added Text: Red Underline Removed Text: Red Strikethrough Moved Text: Green Striketrhough and Underline Page 4 of 4 Section 2 Planning Commission. The Planning Commission discussed the proposed ordinance at their February 10, 2026, meeting and held a public hearing on the amendment. Section 3 Effective Date. This ordinance shall be in full force and effect upon its adoption. Passed and adopted by the City Council of the City of Scandia this ___th day of __________ 2026. Steve Kronmiller, Mayor ATTEST: Kyle Morell, City Administrator