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What are the undue hardship factors? <br />The first factor is that the property cannot be put to a reasonable use without the variance. <br />Caution! In June 2010, the Minnesota Supreme Court issued a decision that changed the <br />longstanding interpretation of the first factor. The Court held that the reasonable use factor is not <br />whether the proposed use is reasonable, but rather whether there is reasonable use in the absence <br />of the variance. This is a much stricter test, which considerably limits variance opportunities. A <br />city will need to work closely with the city attorney to determine if a variance application can <br />satisfy the first factor. <br />The second factor is that the landowner's problem is due to circumstances unique to the property <br />not caused by the landowner. The uniqueness generally relates to the physical characteristics of <br />the particular piece of property, that is, to the land, and not personal characteristics or preferences <br />of the landowner. When considering the variance for a building to encroach or intrude into a <br />setback, the focus of this factor is whether there is anything physically unique about the particular <br />piece of property, such as sloping topography or other natural features like wetlands or trees. <br />The third factor is that the variance, if granted, will not alter the essential character of the locality. <br />Under this factor consider whether the resulting structure will be out of scale, out of place, or <br />otherwise inconsistent with the surrounding area. For example, when thinking about the variance <br />for an encroachment into a setback, the focus is how the particular building will look closer to a lot <br />line and if that fits in with the character of the area. <br />What about economic considerations? <br />Sometimes landowners insist that they deserve a variance because they have already incurred <br />substantial costs or argue they will not receive expected revenue without the variance. State <br />statute specifically notes that economic considerations alone cannot create an undue hardship. <br />Rather, an undue hardship exists only when the three statutory factors are met. <br />Can a city grant a use variance? <br />Sometimes a landowner will seek a variance to allow a particular use of their property that would <br />otherwise not be permissible under the zoning ordinance. Such variances are often termed "use <br />variances" as opposed to "area variances" from dimensional standards. Use variances are not <br />generally allowed in Minnesota-state law prohibits a city from permitting by variance any use <br />that is not permitted under the ordinance for the zoning district where the property is located. For <br />more information, see Minn. Stat. ~ 462.357. <br />Is a public hearing required? <br />Minnesota statute does not clearly require a public hearing before a variance is granted or denied, <br />but many practitioners and attorneys agree that the best practice is to hold public hearings on all <br />variance requests. A public hearing allows the city to establish a record and elicit facts to help <br />determine if the application meets the undue hardship factors. <br />What is the role of neighborhood opinion? <br />Neighborhood opinion alone is not a valid basis for granting or denying a variance request. While <br />city officials may feel their decision should reflect the overall will of the residents, the task in <br />2 <br />