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MapLink™ | Procedures | Amortization of Nonconforming Uses

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Amortization of Nonconforming Uses
A. City Council Initiation of Amortization Case. Only the City Council, by majority vote, may request that the Board of Adjustment consider establishing a compliance date for a Nonconforming Use.

B. Board of Adjustment Decision of Amortization Case.
1. Per the authorization of City Council (A above), the Board of Adjustment may require the discontinuance of a Nonconforming Use under any plan whereby the full value of the use’s structure and facilities can be amortized within a definite period of time, taking into consideration the general character of the neighborhood and the necessity for all property to conform to the UDC regulations.
2. All actions to discontinue a Nonconforming Use shall be taken with due regard for the property rights of the persons affected when considered in the light of the public welfare and the character of the area surrounding the nonconforming use and the conservation and preservation of property.

C. Public Hearing Process. Upon receiving a request under A above from the City Council, staff shall schedule the First Public Hearing before the Board. The Board may establish a compliance date only after holding two separate public hearings.

1. First Public Hearing. The Board shall hold a public hearing to determine whether continued operation of the Nonconforming Use will have a significant adverse effect on nearby properties. Only if, based on the evidence presented at the public hearing, the Board determines that continued operation of the Nonconforming Use will have a significant adverse effect on nearby properties, it shall schedule a second public hearing to establish a compliance date for the Nonconforming Use. In determining whether the continued operation will have a significant adverse effect on nearby properties, the Board shall consider the following factors:
a. The character of the surrounding neighborhood.
b. The degree of incompatibility of the use with the zoning district in which it is located.
c. The manner in which the use is being conducted.
d. The hours of operation of the use.
e. The extent to which continued operation of the use may threaten public health or safety.
f. The environmental impacts of the use’s operation, including but not limited to the impacts of noise, glare, dust, and odor.
g. The extent to which public disturbances and nuisances may be created or perpetuated by continued operation of the use.
h. The extent to which traffic or parking problems may be created or perpetuated by continued operation of the use.
i. Any other factors relevant to the issue of whether continued operation of the use will adversely affect nearby properties.
j. To the extent the Nonconforming Use impacts the value and marketability of the abutting and surrounding properties or neighborhood.
k. Notwithstanding anything to the contrary, the Board cannot amortize a use described in Subsection 2.10.02. E.2 unless it finds that the use is a nuisance or that the use presents a risk of imminent destruction of property or injury to persons.

2. Second Public Hearing.
a. If the Board has determined in the first public hearing that the Nonconforming Use has an adverse effect on nearby properties, it shall hold a second public hearing to set a date for compliance. The Board shall, in accordance with the law, provide a compliance date for the Nonconforming Use under a plan whereby the owner’s actual investment in the use before the time that the use became nonconforming can be amortized within a definite time period. The following factors must be considered by the Board in determining a reasonable amortization period:
i. The owner’s capital investment in structures, fixed equipment, and other assets (excluding inventory and other assets that may be feasibly transferred to another site) on the property before the time the use became nonconforming.
ii. Any costs that are directly attributable to the establishment of compliance date, including demolition expenses, relocation expenses, termination of leases, and discharge of mortgages.
iii. Any return on investment since inception of the use, including net income and depreciation.
iv. The anticipated annual recovery of investment, including net income and depreciation.
v. A reasonable closeout and termination period for the nonconforming use.
b. If the Board, at the first public hearing, requests financial documentation or records from the owner relating to the factors listed directly above, the owner shall provide said documents or records at least thirty (30) days before the second public hearing. If the owner does not provide said documentation, the Board is authorized to make its determination of a compliance date based upon any reasonably available public records as well as public testimony at the hearing. Failure by owner to provide the requested financial documents and records shall not prevent the Board from setting a compliance date.
 
D. Ceasing Operations. If the Board establishes a compliance date for a Nonconforming Use, the use must cease operations on that date.
and it may not operate thereafter unless it becomes a conforming use.

E. Definitions. For purposes of this subsection, "owner" means the owner of the Nonconforming Use at the time of the Board’s determination of a compliance date for the Nonconforming Use.

F. Finality of Decisions.
1. Decisions that cannot be Immediately Appealed. A decision by the Board that the continued operation of a Nonconforming Use will have a significant adverse effect on neighboring property and the Board’s decision to schedule a second public hearing to establish a compliance date are not final decisions and cannot be immediately appealed.
2. Decision to Deny a Request to Establish a Compliance Date. A decision by the Board to deny a request to establish a compliance date is final unless appealed to state court within ten (10) calendar days in accordance with Chapter 211 of the Local Government Code.
3. Decision Setting a Compliance Date. A decision by the Board setting a compliance date is final unless appealed to state court within ten (10) calendar days in accordance with Chapter 211 of the Local Government Code.