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remove the existing duplex and construct a new two-unit townhome. The subject property is zoned LR-IB, One-Family Lakeshore Residential District. The minimum lot area per dwelling unit is 1 acre per unit. The subject property is 1.01 acres which meets the minimum lot area requirement for a single family residence. The comprehensive plan designates the subject property as being located in the urban service area where urban residential development should occur at 1 acre density. The area is sewered. The existing structure is considered to a be a legal, non-conforming use. The subject property is not eligible for a duplex credit in accordance with Section 10.20, Subd. 3, (I) Duplex Credit, because it does not comply with the criteria. First, the subject lot shall be adjacent to a commercial or industrial lot. The subject lot is between two zoning lots that are zoned residential. Historically, "adjacent" in Orono for the purposes of zoning interpretation has been interpreted to mean contingent. Therefore, this lot is not adjacent. If a zoning lot meets the first criteria, then the second test that is applied is whether the proposed duplex is located no more than 200’ from the commercial or industrial district. The proposed townhome is located beyond the 200' requirement. The applicant is presented with two problems, his lot is neither adjacent or within 200' of the zoning district. A zoning code text is required to allow the proposed use as a conditional use. A variance cannot be granted for the use. The state law prohibits municipalities from granting variances for uses that are not permitted in the zoning district. Therefore, the duplex credit eligibility area would need to be amended to allow the proposed duplex as a conditional use. A variance would then be needed to allow the proposed duplex to be constructed more than 200 feet from the boundary of an industrial or commercial district. The redevelopment of the subject lot is further constrained by the presence of "Outlot A" along the lakeshore which provides joint docks for the four units to the north. Historical minutes indicate that this outlot was created based on a staffs recommendation to minimize impact on the wetland/lakeshore. The applicant believes that the presence of this outlot makes it difficult to develop the lot as a single family residence. The applicant has been directed by the Planning Commission to work with the townhome owners to determine if the outlot can be eliminated. The Planning Commission discussed this matter and generally supported removal of the existing structure but did not come to a consensus. The motion that was adopted supported granting a conditional use permit for a new townhome and amending the distance requirement to 250' from the B-3 district. Staff has revised the zoning amendment based on Planning Commission's direction. Colored maps are included in this report that explain the areas where the duplex credit is in effect. The amendment would extend the eligibility area another 50' and would include property that is not adjacent. (See Exhibit D, Colored Maps ) The text amendment is shown by a dotted line 250 feet from the B-3 district shown in orange. The subject lot is the only lot impacted by the amendment. 02314 Hoyt Development 2505/2507 Kelly Avenue C V.P. and Zoning Code amendment 12/08/97 page-2