1.1CONFERENCE COMMITTEE REPORT ON H. F. No. 5191.2A bill for an act1.3relating to local government; regulating nonconforming lots in shoreland areas;1.4amending Minnesota Statutes 2008, sections 394.36, subdivision 4, by adding a 1.5subdivision; 462.357, subdivision 1e.1.6May 16, 20091.7The Honorable Margaret Anderson Kelliher1.8Speaker of the House of Representatives1.9The Honorable James P. Metzen1.10President of the Senate1.11We, the undersigned conferees for H. F. No. 519 report that we have agreed upon the 1.12items in dispute and recommend as follows:1.13That the Senate recede from its amendments and that H. F. No. 519 be further 1.14amended as follows:1.15Delete everything after the enacting clause and insert:1.16    "Section 1. Minnesota Statutes 2008, section 394.36, subdivision 4, is amended to read:1.17    Subd. 4. Nonconformities; certain classes of property. This subdivision 1.18applies to homestead and nonhomestead residential real estate and seasonal residential 1.19real estate occupied for recreational purposes. Except as otherwise provided by law, a 1.20nonconformity, including the lawful use or occupation of land or premises existing at the 1.21time of the adoption of an official control under this chapter, may be continued, including 1.22through repair, replacement, restoration, maintenance, or improvement, but not including 1.23expansion. If the nonconformity or occupancy is discontinued for a period of more than 1.24one year, or any nonconforming building or structure is destroyed by fire or other peril 1.25to the extent of greater than 50 percent of its estimated market value, as indicated in 1.26the records of the county assessor at the time of damage, and no building permit has 1.27been applied for within 180 days of when the property is damaged, any subsequent 1.28use or occupancy of the land or premises must be a conforming use or occupancy. If a 2.1nonconforming building or structure is destroyed by fire or other peril to the extent of2.2greater than 50 percent of its estimated market value, as indicated in the records of the 2.3county assessor at the time of damage, the board may impose reasonable conditions upon 2.4a zoning or building permit in order to mitigate any newly created impact on adjacent 2.5property. or water body. When a nonconforming structure in the shoreland district with 2.6less than 50 percent of the required setback from the water is destroyed by fire or other 2.7peril to greater than 50 percent of its estimated market value, as indicated in the records 2.8of the county assessor at the time of damage, the structure setback may be increased if 2.9practicable and reasonable conditions are placed upon a zoning or building permit to 2.10mitigate created impacts on the adjacent property or water body.2.11    Sec. 2. Minnesota Statutes 2008, section 394.36, is amended by adding a subdivision 2.12to read:2.13    Subd. 5.Existing nonconforming lots in shoreland areas.(a) This subdivision 2.14applies to shoreland lots of record in the office of the county recorder on the date of 2.15adoption of local shoreland controls that do not meet the requirements for lot size or lot 2.16width. A county shall regulate the use of nonconforming lots of record and the repair, 2.17replacement, maintenance, improvement, or expansion of nonconforming uses and 2.18structures in shoreland areas according to this subdivision.2.19(b) A nonconforming single lot of record located within a shoreland area may be 2.20allowed as a building site without variances from lot size requirements, provided that:2.21(1) all structure and septic system setback distance requirements can be met;2.22(2) a Type 1 sewage treatment system consistent with Minnesota Rules, chapter 2.237080, can be installed or the lot is connected to a public sewer; and2.24(3) the impervious surface coverage does not exceed 25 percent of the lot.2.25(c) In a group of two or more contiguous lots of record under a common ownership, 2.26an individual lot must be considered as a separate parcel of land for the purpose of sale 2.27or development, if it meets the following requirements:2.28(1) the lot must be at least 66 percent of the dimensional standard for lot width and 2.29lot size for the shoreland classification consistent with Minnesota Rules, chapter 6120;2.30(2) the lot must be connected to a public sewer, if available, or must be suitable for 2.31the installation of a Type 1 sewage treatment system consistent with Minnesota Rules, 2.32chapter 7080, and local government controls;2.33(3) impervious surface coverage must not exceed 25 percent of each lot; and2.34(4) development of the lot must be consistent with an adopted comprehensive plan.3.1(d) A lot subject to paragraph (c) not meeting the requirements of paragraph (c) must 3.2be combined with the one or more contiguous lots so they equal one or more conforming 3.3lots as much as possible.3.4(e) Notwithstanding paragraph (c), contiguous nonconforming lots of record 3.5in shoreland areas under a common ownership must be able to be sold or purchased 3.6individually if each lot contained a habitable residential dwelling at the time the lots came 3.7under common ownership and the lots are suitable for, or served by, a sewage treatment 3.8system consistent with the requirements of section 115.55 and Minnesota Rules, chapter 3.97080, or connected to a public sewer.3.10(f) In evaluating all variances, zoning and building permit applications, or 3.11conditional use requests, the zoning authority shall require the property owner to address, 3.12when appropriate, storm water runoff management, reducing impervious surfaces, 3.13increasing setback, restoration of wetlands, vegetative buffers, sewage treatment and water 3.14supply capabilities, and other conservation-designed actions.3.15(g) A portion of a conforming lot may be separated from an existing parcel as long 3.16as the remainder of the existing parcel meets the lot size and sewage system requirements 3.17of the zoning district for a new lot and the newly created parcel is combined with an 3.18adjacent parcel.3.19    Sec. 3. Minnesota Statutes 2008, section 462.357, subdivision 1e, is amended to read:3.20    Subd. 1e. Nonconformities. (a) Except as otherwise provided by law, any 3.21nonconformity, including the lawful use or occupation of land or premises existing at 3.22the time of the adoption of an additional control under this chapter, may be continued, 3.23including through repair, replacement, restoration, maintenance, or improvement, but 3.24not including expansion, unless:3.25(1) the nonconformity or occupancy is discontinued for a period of more than one 3.26year; or3.27(2) any nonconforming use is destroyed by fire or other peril to the extent of greater 3.28than 50 percent of its estimated market value, as indicated in the records of the county 3.29assessor at the time of damage, and no building permit has been applied for within 180 3.30days of when the property is damaged. In this case, a municipality may impose reasonable 3.31conditions upon a zoning or building permit in order to mitigate any newly created impact 3.32on adjacent property. or water body. When a nonconforming structure in the shoreland 3.33district with less than 50 percent of the required setback from the water is destroyed by 3.34fire or other peril to greater than 50 percent of its estimated market value, as indicated in 3.35the records of the county assessor at the time of damage, the structure setback may be 4.1increased if practicable and reasonable conditions are placed upon a zoning or building 4.2permit to mitigate created impacts on the adjacent property or water body.4.3(b) Any subsequent use or occupancy of the land or premises shall be a conforming 4.4use or occupancy. A municipality may, by ordinance, permit an expansion or impose upon 4.5nonconformities reasonable regulations to prevent and abate nuisances and to protect the 4.6public health, welfare, or safety. This subdivision does not prohibit a municipality from 4.7enforcing an ordinance that applies to adults-only bookstores, adults-only theaters, or 4.8similar adults-only businesses, as defined by ordinance.4.9(c) Notwithstanding paragraph (a), a municipality shall regulate the repair, 4.10replacement, maintenance, improvement, or expansion of nonconforming uses and 4.11structures in floodplain areas to the extent necessary to maintain eligibility in the National 4.12Flood Insurance Program and not increase flood damage potential or increase the degree 4.13of obstruction to flood flows in the floodway.4.14(d) Paragraphs (d) to (j) apply to shoreland lots of record in the office of the 4.15county recorder on the date of adoption of local shoreland controls that do not meet 4.16the requirements for lot size or lot width. A municipality shall regulate the use of 4.17nonconforming lots of record and the repair, replacement, maintenance, improvement, 4.18or expansion of nonconforming uses and structures in shoreland areas according to 4.19paragraphs (d) to (j).4.20(e) A nonconforming single lot of record located within a shoreland area may be 4.21allowed as a building site without variances from lot size requirements, provided that:4.22(1) all structure and septic system setback distance requirements can be met;4.23(2) a Type 1 sewage treatment system consistent with Minnesota Rules, chapter 4.247080, can be installed or the lot is connected to a public sewer; and4.25(3) the impervious surface coverage does not exceed 25 percent of the lot.4.26(f) In a group of two or more contiguous lots of record under a common ownership, 4.27an individual lot must be considered as a separate parcel of land for the purpose of sale 4.28or development, if it meets the following requirements:4.29(1) the lot must be at least 66 percent of the dimensional standard for lot width and 4.30lot size for the shoreland classification consistent with Minnesota Rules, chapter 6120;4.31(2) the lot must be connected to a public sewer, if available, or must be suitable for 4.32the installation of a Type 1 sewage treatment system consistent with Minnesota Rules, 4.33chapter 7080, and local government controls;4.34(3) impervious surface coverage must not exceed 25 percent of each lot; and4.35(4) development of the lot must be consistent with an adopted comprehensive plan.5.1(g) A lot subject to paragraph (f) not meeting the requirements of paragraph (f) must 5.2be combined with the one or more contiguous lots so they equal one or more conforming 5.3lots as much as possible.5.4(h) Notwithstanding paragraph (f), contiguous nonconforming lots of record in 5.5shoreland areas under a common ownership must be able to be sold or purchased 5.6individually if each lot contained a habitable residential dwelling at the time the lots came 5.7under common ownership and the lots are suitable for, or served by, a sewage treatment 5.8system consistent with the requirements of section 115.55 and Minnesota Rules, chapter 5.97080, or connected to a public sewer.5.10(i) In evaluating all variances, zoning and building permit applications, or 5.11conditional use requests, the zoning authority shall require the property owner to address, 5.12when appropriate, storm water runoff management, reducing impervious surfaces, 5.13increasing setback, restoration of wetlands, vegetative buffers, sewage treatment and water 5.14supply capabilities, and other conservation-designed actions.5.15(j) A portion of a conforming lot may be separated from an existing parcel as long as 5.16the remainder of the existing parcel meets the lot size and sewage treatment requirements 5.17of the zoning district for a new lot and the newly created parcel is combined with an 5.18adjacent parcel.5.19    Sec. 4. EFFECTIVE DATE.5.20Sections 1 to 3 are effective the day following final enactment."5.21Delete the title and insert:5.22"A bill for an act5.23relating to local government; regulating nonconforming lots in shoreland areas;5.24amending Minnesota Statutes 2008, sections 394.36, subdivision 4, by adding a 5.25subdivision; 462.357, subdivision 1e."
         		We request the adoption of this report and repassage of the bill.House Conferees: (Signed) Michael V. Nelson, Joe Mullery, Larry HowesSenate Conferees: (Signed) Ann Rest, Dick Day, Don Betzold

6.1We request the adoption of this report and repassage of the bill.6.2House Conferees:(Signed)6.3
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                     						6.4Michael V. NelsonJoe Mullery6.5
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                     						6.6Larry Howes6.7Senate Conferees:(Signed)6.8
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                     						6.9Ann H. RestDick Day6.10
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                     						6.11Don Betzold