Council stays busy with residential, zoning appeals

The Hill City Common Council was busy at its June 27 meeting fielding two appeals. The aldermen struck down the appeal of property owner Ken Brown in regards to his property at 254 E. Main Street. Brown was appealing the planning and zoning commission’s denial of his request to change the property from residential division 2 (R2) to commercial division 3 (C3)
Brown  requested  the hearing be postponed  until July 11, however the council did not extend Brown that courtesy since the request was received June 24. President  Dale Householder said it was awfully late for canceling.
Alderman Jason  Gillaspie asked to proceed with the hearing in case anyone present wanted to speak.
There have been four written complaints on the property since it became a nightly vacation rental  in 2019. The State Department  of Health prohibited the use of the basement as a rental area in 2021.
Brown said he forgot to take pictures down until 2022 showing the basement as a rental space. According to the city there are as many as 10 occupants in the three-bedroom  house  although Brown said “very, very rarely” does this happen. Brown claims the house usually houses six people.
Another concern was that Brown was allowing camping on the property. Brown says he specifically doesn’t allow guests with RVs. Brown explained  the issues with the occupants of the vacation rental  including evicting his contractor who then resided on site in an RV.
He admits he has had one customer one night with one tent that was advertised as a camping spot on AirBnb. That post is no longer online.
On June 24 the city received a letter from a neighbor on N. Newton Ave in opposition to changing the zoning.
Alderman Carl Doaty asked if any of the issues regarding the property have been addressed. And while development services coordinator Dani Schade made it clear the issue has been taken care of, she said, “it’s definitely a vacation property that needs more attention  than  most, adding “the conditional use permit (CUP) would give city a little bit of an upper hand, C2 would not.”
A change to C2, for example, could  permit RV parking. Brown pleaded with the Alderman.
“I really wish you had allowed a continuance here. I’m in full compliance with  the CUP,” he said.
He cited neighboring properties with commercial zoning. He stated more than once that he was happy to sign a letter stating he won’t allow camping in the future.
Alderman Householder  asked why Brown wanted the change since it would have no effect on its use, with Brown responding  “It potentially  might be worth more as a commercial  property.”
Householder stressed his concern of protecting the city in the future.
The council members did not see that postponing the hearing would “give us more information  than  we have,” as Householder put it.
Gillaspie expressed his concern over changing the use to commercial  without  having a specific commercial intent. Ultimately it was Gillaspie who made a motion to approve  the request to change from R2 to C3, since all motions must be made in  the affirmative.
This motion unanimously failed.
Vic Alexander’s request to appeal the building permit at 125 Pine Ave., which would have added a second floor  to a garage on his neighbor’s property that  encroaches into the ROW was approved, despite the city attorney’s counsel.
The city sent its attorney the building plans, audio files and documentation from the planning and zoning meetings and city council meetings. The city attorney, who was not present at the meeting, felt the planning and zoning stance was accurate.
The attorney explained that Alexander is not aggrieved  by the permit.
“I  don’t know if the city can refuse to issue the permit because the neighbor doesn’t like  it,” said city administrator Brett McMacken, who quoted the city attorney’s response.
Alexander’s attorney said Vic would be affected by this issue and thus “has standing.” He also cited the city code.  
“You can’t put an addition in the right of way,” the attorney said.
Alexander stressed all additions need to  meet requirements of the  code.
Alderman Carl Doaty was concerned that  the attorney has the right to interpret the code, which can lead to inconsistencies.
Gillaspie said the addition changes the structure and it’s his interpretation  that it does change the nonconformity.
Householder says the city puts trust in its attorney even if he doesn’t necessarily  agree.
The motion to affirm  the appeal of the building permit was approved  meaning the council  sided with Alexander, with Householder being the lone no vote.
A conditional use permit for a nightly vacation rental  at 319 Park Street was tabled despite a city wide ordinance banning nightly vacation rentals in residential neighborhoods. The application was initiated prior to the new ordinance.
The parcel was one of four in an April 2022 purchase and the sellers had used the property as a nightly vacation rental without the required  permit. That home on Park Street  is zoned residential while neighboring 320 is commercial. There is one legal vacation rental on Pine Street currently.
The applicant wants to keep R2 zoning with “no additional  negative  impacts to the neighborhood,” according to Schade.
The council disagreed.
“We do have a different  ordinance in effect right now,” Gillaspie said.
Doaty wanted to know where the town legally stands since the  application  was initiated prior to the new ordinance but town officials did not receive any guidance  from its legal team on this matter.
Householder  motioned to approve  while Doaty made clear his position  was to consult legal counsel. The motion failed. Doaty then motioned  to table the matter pending opinion from  legal counsel. That motion was unanimously approved.
A variance request for the property at 243 Elm St. for no off-street parking requirements was approved.
The property was previously used as office space, retail  shops and a daycare but is currently a short-term and long-term rental, both via CUPs. The new business will be an outdoor bar/restaurant.
Schade expressed that the "importance of the location of this building  should not be understated” as a “prime entryway to our Main Street.”
The property  is zoned C1.
Dustin Willett, director of Pennington County Emergency Management, asked the city to participate in the new hazard mitigation plan. The plan remains in effect for five years with the current plan set to expire in September 2024.
Participation makes  municipalities eligible for various Federal Emergency Management Agency grants such as  the Building Resilient Infrastructure and Communities grant and other hazard mitigation grants.
Having an approved  pre-disaster plan in place allows municipalities “to play,” Willett said.
The plan appears as one big plan but is “really a composite” of various municipalities according to Willett. The city approved the request.
A sound permit for the Mangy Moose was approved  as was a special event permit for the Hill City Senior Biker Breakfast.
The council approved the usual Sturgis closure of Main Street from Friday Aug.  5-14.
Doaty wanted to make the dates fluid if the rally winds down early. McMacken says the city does watch the traffic daily.
McMacken  also expressed his frustration with the closure times, with early mornings being relatively empty with motorcycles. Aldermen said they receive comments on both sides of the issue.
Eric Lind from the Heart of the Hills Economic Development Corp. (EDC) spoke about the housing study, the Neiman site plan, and the leadership development classes the EDC hopes to bring.
Lind described  progress on the Nieman site “in terms of continuing to remove bark from the site.”
The leadership development program will be in conjunction with Custer, taking place in October  and winding up prior to Thanksgiving. The EDC is looking for potential applicants and will have an information social Sept. 15 at Crazy Horse.
The next EDC meeting is July 21 at 7 a.m.
“There’s always something new happening,” said Lind, who invited the public to attend.
Hill City is still looking for planning and zoning and parks board members. Budget hearings will begin July 14 at 6 p.m. and then on July 21, July 28 and Aug. 4 if needed.
The archaeological survey for the new city reservoir is complete with no impact findings. This is being submitted to Rural Development immediately with bid letting to take place  as soon as possible.
The Hill City Center construction project has a  back order on certain breakers needed to pass electrical inspection.
While the bathrooms are complete inspections for the whole building must take place before they can open.
The next council meeting is July 11 at 5:30 p.m.