07-15-1991 Planning Packet - Laserfiche WebLink

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Ms. Jeanne Mabusth City of Orono June 18, 1991 Page Two of r'ive (1)I have been provided a copy of the opinion of the City attorney concerning the legality of the Application by Big Island, Inc. for a conditional use permit. One of the issues addressed by Ms. Pace-Shapiro related to whether or not Big Island, Inc. is a for-profit corporation. Please be advised that Big Island, Inc. was incorporated under Minnesota Statutes Annotated Section 302A (the most common "for-profit" statute). However, please note that Big Islanu, Inc. is not and does not intend to be a for-profit corporation. It is presently operating on a breal<-even or loss basis and expects to do so for the foreseeable future. Another issue raised by Ms. Pace-Shapiro related to the discrepancy between the number of shares authorized under the Articles of Amendment and the number of shares permitted under the Amended Bylaws of Big Island, Inc. Please be advised that while the Articles allow for the issuance of 100 shares of Class A and 100 shares of Class B, the amended bylaws restrict the issuance to a total of 65 combined Class A and Class B shares. There are presently approximately 41 Class A shares outstanding and, I believe, less than 20 shares of Class B outstanding. It should be noted that Class B shares may only be held by family members of a shareholder of Class A stock. The purpose of the Class B shares is to provide junior memberships to family members of Class A shareholders. Another issue raised by Ms. Pace-Shapiro relates to Section 10.31, subdivision 3(c)(1) of the Orono City Code. Ms. Pace-Shapiro recites a portion of this section "if the number of expected number of users at any one time exceeds 100, the minimum lot area required shall be maintained to obtain a ratio of at least 1 acre per 20 users. I would like to emphasize the use of the word "users" as opposed to "members". Presently, the average number of weekday users is less than 10 and the average number of weekend users at any given time is less than 20. Th^re ■•re two or three days during the summer that the use would likely exceed 50 users at any one time and those days are Memorial Day, the 4th of July and Labor Day. I have been advised that the maximum number of users at any one of those given dates has not exceeded 80, with possibly one exception in 1985 or 1986. A committee sponsors each special event that is held at the island and reservations are taken for each event. Big Island, Inc. would or should know, before eacn event is