DIR2013-00001 UI
DIRECTOR'S INTERPRETATION
T I GARD DIR2013 -00001
DATE: February 21, 2013
CODE CHAPTER: 18.130 Use Categories
TOPIC: Nontraditional Auto Sales
LOCATION: All Commercial and Industrial Zoning Districts That Permit Office Uses
I. REQUEST
City staff has received a request for a Director's Interpretation on the appropriate land use
classification of a nontraditional motor vehicle sales operation. Auto Mentors, the business in
question, operate as a brokerage -based business and does not require or request an associated on-
site inventory or service facility for automobiles. According to information provided, the applicant
believes their business is an office type land use, and thus an allowed land use at 8260 SW Hunziker,
located within the I -P: Industrial Park Zoning District.
The Tigard Development Code recognizes that it is not possible for the code to anticipate all land
use scenarios, particularly in circumstances where a new business model is emerging that does not fit
neatly into establish land use classifications. To address this, Section 18.130.030 and Chapter 18.340
of the code authorizes the director to render an administrative code interpretation on omitted
and /or unanticipated land uses. In compliance with the TDC, the following two sections analyze the
request and establish a Director's Interpretation on how the code will be administered.
II. ANALYSIS: TIGARD DEVELOPMENT CODE
The Planning Director is required to approve the assignment of an unanticipated land use based on
four criteria set forth in subsection 18.130.030.0 of the Tigard Development Code. These criteria
and findings of fact are listed below.
The use is consistent with the intent and purpose of the applicable zoning district;
The affected property has a zoning designation of I -P: Industrial Park. As stated in
TDC18.530.020.A, the intent of the I -P zoning district is to provide appropriate locations for the
combining of light manufacturing, office, and small -scale commercial uses. Only those light
industrial uses with no off -site impacts (e.g., noise, glare, odor, vibration) are permitted in the I -P
Zone. In addition, development standards in the I -P zone have been adopted to insure that
developments is well - integrated, attractively landscaped, and pedestrian - friendly.
•
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In a letter dated January 28, 2013 the applicant described Auto Mentors as a nontraditional auto
sales operation characterized as office in nature, based upon the following facts:
• The applicant, Auto Mentors, seeks to begin operations at 8260 SW Hunziker Street. This
property is zoned I -P: Industrial Park.
• Auto Mentors works with 13 credit unions around the state by assisting their members with
the entire auto - buying process.
• Auto Mentor anticipates 4 to 8 employees on staff.
• Auto Mentors staff determine their clients' needs through a phone interview, and then
search dealer inventories online.
• The General Manager spends the majority of his day in the office working on business
development, coordinating vehicle transport, finances, and managing the sales staff.
• An Office Manager is in charge of all paperwork related to the selling of cars, DMV, DOL,
and office management.
• A Controller and Marketing Consultant are present two to three days a week.
• The business would occupy office space approximately 1,400 square feet in size, with hour s
of operation limited from 8am to 5pm.
• Vehicles coming to the site would be limited to employee parking, and trade -ins dropped off
by the customers of the business. Clients will pick up vehicles at the dealership, not on site.
• No repair is performed on site.
As described above, Auto Mentors describes a business operation whose principle activities are
conducted within an office type setting, with no outside operations or off -site impacts other than
those normally associated with employee parking and occasional customer parking. This criterion is
met.
The use is similar to and of the same general type as the use categories listed in the zoning
district;
The use has similar intensity, density, and off -site impacts as the use categories listed in the
zoning district, to be evaluated using the criteria set forth in Section 18.130.015.A.2; and
As described in the letter of January 28, 2013 above, the use is similar to the characteristics of
permitted, restricted, and conditional use categories listed in Table 18.530.1 (Use Table: Industrial
Zone). This would include office uses, as defined in 18.130.060.L and quoted below. Relevant
sections have been underlined for emphasis.
Office.
1. Characteristics: Office uses are characterized by activities conducted in an office setting that focus
on the provision of goods and services, usually by professionals. Traditional Office uses are
characterized by activities that generally focus on business, l- overnment, professional, medical, or
financial services [emphasis added]. Office uses may include activities that, while conducted in an
office -like setting, are less consumer - oriented and focus on the support of off-site service personnel
or in the development, testing, production, processing, packaging, or assembly of goods and
products. Medical, dental, veterinary offices are out patient clinics which provide healthcare to
humans or animals, characterized by a professional or group of professionals assisted by support
staff.
2. Accessory Uses: Accessory uses commonly found are parking and storage facilities.
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3. Examples: Examples include government offices; medical, dental, and veterinary clinics and
laboratories; blood collection centers; professional offices for attorneys, architects, engineers,
stockbrokers, insurance brokers, and other consultants; headquarters offices; sales offices; radio
and television studios; administrative offices for painting, building, and landscaping contractors;
and software development firms.
Moreover, the described business does not share the general characteristics of traditional motor
vehicle sales, as described in 18.130.060.J (Motor Vehicle Sales) and quoted below.
Motor Vehicle Sales /Rental.
1. Characteristics: Motor Vehicle Sales /Rental includes land uses involved in the sale, lease, and/or
rental of cars, motorcycles, light and heavy trucks, mobile homes, boats, and recreational vehicles.
2. Accessory Uses: Accessory uses commonly found include parking, auto repair and maintenance
facilities, office space, and storage space.
3. Examples: Examples include auto dealerships, used car lots, and car rental facilities.
Absent from auto mentors are the extensive inventory parking, auto repair, and storage space.
These accessory uses are not compatible with the intent of the I -P Zoning District, and absent these
accessory uses, Auto Mentors is more like an office use and meets the stated intent of the I -P Zone.
This criterion is met.
The use has similar impacts on the community facilities as the listed use categories.
Community facilities include streets, schools, libraries, hospitals, parks, police and fire
stations, and water, sanitary sewer and storm drainage systems.
As an office use, Auto Mentors would have an equal impact on community facilities as other
allowed land uses in the I -P Zoning District. This criterion is met.
The Director shall not authorize an omitted and /or unanticipated land use in a zoning
district if the use category is specifically listed in another zone as either a permitted use,
restricted use, or a conditional use.
As described in the applicant's letter and discussed above, Auto Mentors is characteristically
different from traditional motor vehicle sales and is more appropriately classified as an office use.
This determination based upon criteria set forth in TDC 18.130.015.A.2 to be used in assigning a
use category, including the description of activity, the customer type, the employee responsibilities
and activities, hours of operation, building arrangement, vehicles used and trip generation, and how
the business advertises itself. This criterion is met.
III. ANALYSIS: OREGON DEPARTMENT OF MOTOR VEHICLES
Local recognition of Auto Mentors as an office use is complicated by State of Oregon Department
of Motor Vehicles requirements. To begin business, dealers must obtain location approval from a
local zoning official on the "Application for Three Year Vehicle Dealer Certificate" form, in
compliance with ORS 822.005 (quoted below):
DIR2013- 00001: Nontraditional Auto Sales 3 of 5
822.005 Acting as vehicle dealer without certificate
(1) A person commits the offense of acting as a vehicle dealer without a certificate if the person
is not the holder of a valid, current vehicle dealer certificate issued under ORS 822.020 and the
person:
(a) Buys, sells, brokers, trades or exchanges vehicles either outright or by means of any
conditional sale, bailment, lease, security interest, consignment or otherwise;
(b) Displays a new or used vehicle, trailer or semitrailer for sale; or
(c) Acts as any type of agent for the owner of a vehicle to sell the vehicle or acts as any type of
agent for a person interested in buying a vehicle to buy a vehicle.
The form requires the local zoning official to certify that the applicant can do any of the above
activities. In the case of Auto Mentors, compliance with local zoning as an office type land use
prohibits their ability to display new or used vehicles, activities described in subsection (b) above.
As a result Tigard zoning officials can only partially certify Auto Mentors as an applicant for a
dealer's license.
Tigard planning staff contacted the Oregon Department of Motor Vehicles for guidance on how the
local zoning official is to complete the form if not all three activities can be certified as allowable
under local zoning. While a written response was not provided, two state officials at the Business
License Unit confirmed that local zoning officials may: partially certify an applicant for a dealer's
license, with any restrictions or prohibitions noted through the use of strikethroughs, written notes
adjacent to the city stamp or seal, or in an attached letter referenced on the certification form. This
notation serves as notification of land use restrictions to state officials responsible for reviewing
motor vehicle dealer applications.
IV. INTERPRETATION
As discussed in Section II above, Auto. Mentors meets the criteria for assignment as an allowed land
use in the I -P Zoning District, subject to all regulations applicable to those businesses classified as
an Office type land use Furthermore, this interpretation shall apply to other nontraditional auto
dealers that meet the following criteria:
• The applicable zoning district allows office type land uses as a permitted or restricted use.
• The proposed use is characterized by activities conducted in an office setting, with
employees providing professional assistance pertaining to the auto - buying process.
• Vehicles coming to the proposed site are limited to employee parking and temporary storage •
(24 hours maximum or next business day) of trade -ins dropped off by the customers of the
business, with no on -site storage or display of vehicles for sale. Customers shall pick up
purchased vehicles at the dealership or other location approved for motor - vehicle sales, not
on site.
• Vehicle trade -ins
• The proposed use does not include on -site repair or servicing of motor vehicles, or the sale
of parts and supplies.
• The proposed use is not a home occupation.
As discussed in Section III above, Planning Division staff may complete and sign an Application for
Three Year Vehicle Dealer Certificate, provided that activity b (the display of new or used vehicles)
is clearly noted as not being permitted at the desired location. This notation shall be indicated
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through written notations adjacent to the City Seal concurrent with the striking through the language
of activity b as described above.
3 z 511 3
Kenny Asher, Community Development Director Date
- . DIR2013- 00001: Nontraditional Auto Sales 5 of 5
JOHN D. ANNAND II NCARB A R C H I T E C T
LICENSED IN:
8260 S.W. HUNZIKER STREET, SUITE 150 CALIFORNIA WASHINGTON
TIGARD, OREGON 97223 ARIZONA MONTANA
OREGON VIRGINIA
PHONE: (503) 620 -8668 NEVADA ALASKA
IDAHO HAWAII
EMAIL: archjda2 @aol.com `f O
January 28, 28 2013
Q G 1i
Director of Planning
City of Tigard o 0\ A. . R�N
Community Development NNGIEN
13125 SW Ha11 Blvd. P0
Tigard, Oregon 97223
Subject: Director's Interpretations
Auto Mentors
8260 S.W. Hunziker Street
Suite 100
Tigard, Oregon 97223
Dear Director:
We would like to submit this request for interpretation allowing an occupancy of a
portion of my existing office building per Director's Interpretations Chapter 18.340 in
your zoning code. Under the Chapter 18.130 Use Categories, the section 18.130.030
Omitted and Unanticipated Uses should apply.
18.130.030 C. Approval Standards
1. The use is consistant with the intent and purpose of the applicable zoning district.
The zoning district is Light Industrial with an Industrial Park designation. A sales
office is an allowed use per 18130.060 L. Office 3 Examples definition. This use
is focused on a nontraditional auto sales/buying over the phone with no
automobile selling on site. This is not your auto dealership where the business
owns and shows the inventory to sell per 18130.060 I Motor Vehicle Sales/Rental.
2. The use is similar to and of the same general type as the use categories listed in
the zoning district. Expanding on item 1., above. Auto Mentors is a Credit Union
Auto Buying Service. Credit unions refer their members to their consultanting
service. A DMV application is required for their business licensing operation.
3. The use has similar intensity, density and off -site impacts as the use catagories
listed in the zoning district, to be evaluated using the criteria set f orth in Section
18.130.015.A.2
C O N S T R U C T I O N O R I E N T E D DESIGN FIRM
l
r•
In Section 18.130.015A.2 Classification of Uses as determined by operation per
primary use. a.) The description of the activity is basically as follows. As an
office activity Auto Mentor works with 13 credit unions around the state in
assisting their members through the entire auto - buying process. The consultants
determine by phone interview the member's automobile needs and then search
dealer inventory online. The General Manager spends most of his day in the
office working on business development, coordinating vehicle transport, finances,
and managing the sales staff. The Office Manager is in charge of all paperwork
related to selling cars, DMV, DOL, and manageing the office. A Controller and
Marketing Consultant work out of the office two to three days a week. b.) The
office floor space is 1,400 square feet. c.) Usually the sales consultant spends
from two to seven hours over the phone and online to complete the sale. The sales
by phone per month averages about thirty. d.) The customer is a credit union
member of the 13 credit union clients. e.) There are four to eight employees .
Four of the employees will work at this location full time including the General
Manager, Office Manager and two sales consultants. f.) Hours of operation are
8:00 am to 5:00 pm five days a week. Staff meeting are held each Monday
morning. g.) Ground floor office space with adjacent site employee parking. h.)
Only vehicles are employee automible parking. If trade -ins are involved they
come to the site and are taken directly to the off site mechanic to be evaluated. No
repair is done at this site. i.) Ten vehicle trips per day j.) Signage is on a
permanent free standing sign k.) Clients gotten by referral of credit unions to its
membership. The vehicle is picked up at the credit union or dealer. 1.) This office
activity is independent of any other use on property.
4. The use has similar impacts on the community facilities as the listed use
categories. Community facilities include streets, schools, libraries, hospitals,
parks, police and fire stations, and water sanitary sewer and storm drainage
systems. The office use has equal impact on community facilities as uses allowed
in this zone.
This proposed use does not conflict with the 2027 Comprehesive Plan.
Thank you for your time in review of our application. Please contact me on any
unanswered questions that might arise from your consideration.
Sincerely,
c9-41 �0 t
John D. Annand II owner cell 503 750 1815
Armand Properties III -H LLC
CITY OF TIGARD RECEIPT
-4
i g - 1312 SW HaII Blvd., Tigard OR 97223
503.639.4171
TIGARD
Receipt Number: 189977 - 01/28/2013
CASE NO. FEE DESCRIPTION REVENUE ACCOUNT NUMBER PAID
DIR2013 -00001 Director's Interpretation - LRP 100 - 0000 -43117 $81.00
DIR2013 -00001 Director's Interpretation 100 - 0000 -43116 $546.00
Total: $627.00
PAYMENT METHOD CHECK # CC AUTH. CODE ACCT ID CASHIER ID RECEIPT DATE RECEIPT AMT
Check 7941 JFLOYD 01/28/2013 $627.00
Payor: Auto Mentors, Inc.
Total Payments: $627.00
Balance Due: $0.00
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