HomeMy WebLinkAbout05(L) - Ordinance Amending Prior Lake City Code Section 10-268 (Motor Vehicle Sales) and Section 10-185 (Land Use Table) Related to a New Land Use of Motor Vehicle Sales, No Inventory Report
ITEM: 5L
CITY COUNCIL AGENDA REPORT
MEETING DATE: April 28, 2026
PREPARED BY: Paul Moretto, Planner
PRESENTED BY: Casey McCabe, Community Development Director
AGENDA ITEM: Ordinance Amending Prior Lake City Code Section 10-268 (Motor Vehicle
Sales) and Section 10-185 (Land Use Table) Related to a New Land Use of
Motor Vehicle Sales, No Inventory
RECOMMENDED ACTION:
Motion and a second to approve the ordinance amending Section 10-268 and Section 10-185 of
Prior Lake City Code.
BACKGROUND:
City staff is proposing an ordinance amendment to Section 10-268 of the Zoning Code to clarify
and expand regulations related to motor vehicle sales. The amendment would establish a new
land use category of “Motor vehicle sales, no-inventory” and define where and under what
conditions this use may occur. This would require adding this new use to Section 10-185 Land
Use Table as a use permitted with conditions in the TC, C-1, C-2, C-3, and I-1 districts.
The proposed amendment is City initiated and was developed in response to recent inquiries and
conditional use permit (CUP) requests for motor vehicle sales businesses that do not maintain
vehicle inventory on the premises.
Over the last five years, the City has been approached by several motor vehicle sales businesses
that do not keep inventory on premises and wish to locate an office in Prior Lake. In Minnesota,
motor vehicle sales dealerships are required to be located in a permanent, enclosed commercial
building, owned or leased for at least one year, and comply with local zoning regulations.
As part of the state licensing process, auto sales dealers must verify that auto sales are a
permissible use for the location of their business. A form must be completed by the dealer as
certified by the city. Because motor vehicle sales are currently classified as a conditional use in
Prior Lake, the proposed business must engage with the CUP process whether they plan to have
vehicles stored on the site and operate as a traditional vehicle dealership or operate without
inventory on site.
Under the current ordinance, motor vehicle sales are regulated as a conditional use primarily
intended for traditional dealership operations involving outdoor display and storage of vehicles.
However, recent applications have involved business models that operate from an office setting
without vehicle inventory on the premises.
Because the existing ordinance does not clearly address this type of operation, the amendment
is intended to provide clarity, establish appropriate standards, and ensure consistent application
of zoning regulations.
The proposed ordinance amendment does not modify the standards for traditional motor vehicle
sales uses.
City of Prior Lake | 4646 Dakota Street SE | Prior Lake MN 55372
Item 5L
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On April 6th of 2026, the Prior Lake Planning Commission reviewed the draft ordinance and held
a public hearing for the proposed changes. After the hearing, the Planning Commission voted
unanimously to recommend approval to the City Council.
Proposed Amendment
Staff recommends the following amendment items:
Create a new defined land use category titled “motor vehicle sales, no-inventory.”
Establish operational standards ensuring the use functions as an office-based use with all
activity conducted within a building.
Add Motor vehicle sales, no-inventory as a use permitted with conditions (PWC) in Section
10-185, Land Use Table in the TC, C-1, C-2, C-3, and I-1 districts.
Key conditions include:
No outdoor display, storage, or parking of vehicles for sale.
No overnight vehicle inventory on the premises.
All business operations conducted within an enclosed building.
No vehicle repair, servicing, or detailing on-site.
Compliance with off-street parking and operational standards.
Maximum 24 hours and one vehicle for pick-up and/or delivery.
These standards distinguish traditional dealerships from office-based vehicle sales operations
while maintaining compatibility with surrounding uses.
Conclusion
The proposed amendment is intended to:
Provide clarity in zoning administration
Address evolving business models
Ensure appropriate land use compatibility
Maintain regulatory consistency
Generally, office-based vehicle sales operations have fewer impacts than traditional dealerships
because they do not involve outdoor inventory, lighting, noise, or large-scale vehicle traffic. The
proposed standards are designed to ensure these operations remain low-intensity and consistent
with other commercial uses.
FINANCIAL IMPACT:
No financial impact is anticipated as a result of this action.
ALTERNATIVES:
1. Motion and a second, as part of the consent agenda, approving the proposed
amendments to Section 10-268 and Section 10-185 of the Prior Lake City Code.
2. Remove this item from the consent agenda for additional discussion.
ATTACHMENTS:
1. Proposed Ordinance
4646 Dakota Street SE
Prior Lake, MN 55372
CITY OF PRIOR LAKE
ORDINANCE NO. 126-___
AN ORDINANCE AMENDING PRIOR LAKE CITY CODE
SECTION 10-268 MOTOR VEHICLE SALES AND SECTION 10-185, LAND USE TABLE
The City Council of the City of Prior Lake, Minnesota, ordains:
City Code Chapter 10 – Zoning, City Code Article III. – USE DISTRICTS, Division 4. LAND USE
DEFINITIONS AND CONDITIONS, Section 10-268 Motor vehicle sales is hereby amended by
inserting the following (additions are underlined):
Sec. 10-268. Motor vehicle sales.
(a) Definition. The term "Motor vehicle sales" means display, sale and rental of motor vehicles,
watercraft, and recreational vehicles; motor vehicle service and repair often occur in conjunction
with this use. Characteristics may include outdoor activity, outdoor sound systems, truck
deliveries, night and weekend operating hours, and test driving on nearby streets.
(b) Zoning districts and conditions. Motor vehicle sales are a conditional use in C-2 and I-1 with the
following conditions:
1) All vehicles stored on the premises shall be insured and operable.
2) All outdoor lots for sales or rental shall be operated in conjunction with a building
containing the same or similar materials as displayed on the outdoor lot.
3) The building and the lot for sales or rentals shall be on one contiguous property.
4) All vehicles shall be located on hard surfaces at all times. The hard surfaces shall meet all
of the landscaping and design requirements of this chapter for off-street parking.
5) No outdoor public address system shall be audible from any parcel located in a residential
zoning district.
6) All customer and employee parking shall be clearly designated and signed.
7) No motor vehicle transport loading or unloading shall be permitted on any minor residential
street.
8) No display or storage of motor vehicles shall be permitted on any public right-of-way.
9) All parking, sales, rental, and storage lots shall be located a minimum of 100 feet from any
property line in a residential zoning district.
10) Test driving shall be in accordance with all applicable federal, state and local laws and
regulations.
Sec. 10-268.1 Motor vehicle sales, no-inventory
(a) Definition. The term “Motor vehicle sales, no inventory” means the sale of motor vehicles,
watercraft, and recreational vehicles conducted from an enclosed building or office without the
outdoor display, storage, parking, or staging of vehicles for sale on the premises.
(b) Zoning districts and conditions. Motor vehicle sales, no inventory are a use permitted with
conditions in the TC, C-1, C-2, C-3 and I-1 zoning districts, subject to the following conditions:
1) No outdoor display, storage, or parking of motor vehicles for sale shall be permitted on the
premises.
2) No more than one (1) vehicle associated with the business may be present on the site at
any time for customer delivery or pickup, and such vehicle shall not be stored on-site for a
period exceeding twenty-four (24) hours.
3) All business operations shall be conducted entirely within an enclosed building, except for
lawful customer pickup or delivery.
4) No vehicle repair, service, detailing, washing, or mechanical work shall occur on the
premises unless otherwise permitted by the zoning district.
5) No outdoor public address system shall be used.
6) All customer and employee parking shall comply with off-street parking requirements of
this chapter and shall not be used for vehicle inventory.
7) Vehicle transport loading and unloading shall occur only on streets permitted for
commercial traffic and shall not occur on minor residential streets.
8) Test driving shall comply with all applicable federal, state, and local laws and regulations.
Section 2. City Code Chapter 10 – Zoning, Article III. – USE DISTRICTS, Division 3. LAND USE
GENERALLY, Section 10-185 Land use table is hereby amended by inserting the following:
Lot Use Description A R-S R-1 R-2 R-3 TC TC-T C-1 C-2 C-3 I-1
Motor vehicle sales, PWC PWC PWC PWC PWC
no-inventory
Section 3. Summary approved. The City Council hereby determines that the text of the summary
marked "Official Summary of Ordinance No. 126-___” a copy of which is attached hereto clearly
informs the public of the intent and effect of the ordinance. The City Council further determines that
publication of the title and such summary will clearly inform the public of the intent and effect of the
ordinance.
Section 4. Filing. A copy of the ordinance shall be filed in the office of the City Clerk. This copy shall
be available for inspection by any person during regular office hours.
Section 5. Publication. The City Clerk shall publish the title of this ordinance and the official summary
in conformance with State Statute and City Code requirements with notice that a printed copy of the
ordinance is available for inspection by any person during regular office hours at the Office of the City
Clerk.
Section 6. Effective date. This ordinance shall take effect upon its passage and the publication of its
title and the official summary.
th
Passed by the City Council of the City of Prior Lake this 28 day of April 2026.
ATTEST:
_________________________ __________________________
Jason Wedel, City Manager Kirt Briggs, Mayor
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Official Summary of Ordinance No. 126-___
AN ORDINANCE AMENDING PRIOR LAKE CITY CODE
SECTION 10-268, MOTOR VEHICLE SALES
The following is the official summary of Ordinance No. 126-___ passed by the City Council of Prior
Lake on April 28, 2026.
Prior Lake City Code Sec. 10-268, Motor vehicle sales, was amended to include language allowing for
a new land use of Motor vehicle sales, no inventory, as a use permitted with conditions. Prior Lake
City Code Sec. 10-185, Land Use Table was amended to add Motor vehicle sales, no-inventory as a
use permitted with conditions in TC, C-1, C-2, C-3, and I-1 zoning districts.
A printed copy of the ordinance is available for inspection by any person during regular office hours in
the Office of the City Clerk at Prior Lake City Hall, 4646 Dakota Street SE, Prior Lake, MN 55372.
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