Lake Beulah Hotel Conditional Use Approval

Lake Beulah Management District Opposition to the Lake Beulah Hotel Conditional Use Approval


THE FOLLOWING IS A REFORMATTED LETTER SENT TO THE TOWN OF EAST TROY CHAIRMAN, JOE KLARKOWSKI WITH ATTACHMENTS FROM THE LAKE BEULAH MANAGEMENT DISTRICT’S ATTORNEY, HOPP NEUMANN HUMKE. THE CONTENT ALTHOUGH REFORMATTED FOR THIS POST IS THE SAME AS THE ORIGINAL LETTER. THE LETTER STATES THE REASONS FOR THE LAKE BEULAH MANAGEMENT DISTRICT’S OPPOSITION TO THE APPROVAL OF A CONDITIONAL USE FOR THE PROPOSED HOTEL.

August 5, 2020 Via Certified
Mail and Regular U.S. Mail
Town of East Troy
Attn: Joe Klarkowski, Chairperson
P.O. Box 872 East Troy, WI 53120-0872
RE: Lake Beulah Management District Objection to Hotel Development
Dear Chairperson Klarkowski:
This office represents the Lake Beulah Management District (“LBMD”). LBMD is a quasigovernmental body created under Chapter 33 of the Wisconsin Statutes. The mission of LBMD is to protect the water quality and quantity of Lake Beulah for the benefit of all Wisconsin citizens as well as Lake Beulah riparian owners.
In order to protect the quality and quantity of the waters of Lake Beulah, LBMD is opposed to the development of a 68 unit hotel (with commercial kitchen and laundry facilities), a 300 square foot public restaurant (Coffee Shop), including a substantial impervious parking area required to accommodate the Development proposed to be constructed at W13040 Beach Road (the “Development”). The proposed Development is too large and too intense for the 2.94 acre parcel which is currently occupied as Lindey’s at W13040 Beach Road.
LBMD has referred the conditional use permit application of 1341 LLC, a/k/a 1341 Beach Road LLC, (the “Developer”) to us for review and determination as to whether or not the proposed Development complies with applicable Walworth County zoning, shoreland, storm water, sanitary, and water supply ordinances and regulations. After review we have determined that the Development does not comply and must not be approved.
The Development does not comply with the following Walworth County ordinances:

  1. Zoning Deficiency:
    The property is currently zoned R-1 and B-3. The proposed Development requires the use of the entire parcel (2.94 acres or 128,066 square feet) to attempt to satisfy all Walworth County zoning requirements. The R-1 and B-3 zoning classifications are identified on the map attached hereto as Exhibit 1. Section 74-37 of the Walworth County part “No part of any lot, yard, working area, or other space required for a structure or use shall be used to meet the requirements for any other structure or use”.
    In other words, the proposed Development must use the R-1 zoned areas in order to satisfy the fifty foot (50’) rear yard setback requirement of the B-3 zoning (Code section 74-55 – Business Districts). Hotels, motels and tourist resorts are allowed as conditional
    uses in the B-3 Waterfront business district but are not allowed uses in the R-1 singlefamily resident district (unsewered) pursuant to Code § 74.54. The R-1 zoned areas cannot be used to support and/or satisfy any setback or area requirements for the B-3 Development. The Development as proposed is not allowed nor is it in compliance with the current Walworth County zoning regulations.
  2. Parking Deficiency:
    § 74-74 of the Code requires “off-street” parking stalls for the Development as follows:
    Use/ Parking Stall
    Allotment Project Total
    Hotel 1 per/ room 68 total
    Employee Parking 1 per every 3 employees (Estimated 4 employees per shift) 2 total
    Restaurant (300 sq. ft. Coffee Shop) 1 per 150 sq. ft 2 total
    Off-Street Parking Stall
    Requirement 72 total required
    The Development as proposed only has 64 off-street parking stalls and is therefore not in compliance with current Walworth County zoning regulations.
  3. Lot Area Deficiency.
    Code § 74-55 – B-3 Waterfront Business District requires a minimum 40,000 square feet in lot area per principal use or structure and sufficient area to meet off-street parking and
    loading requirements.
    The Development as proposed has three principal uses.
    They are: (1) hotel, (2) restaurant -300sf Coffee Shop, and (3) a commercial kitchen and laundry facilities.
    The three principal uses require lot area of 120,000 square feet plus 31,201 square feet for parking and driveway areas for a total required lot area of 151,201 square feet. The Development as proposed only has a gross lot area of 128,066 square feet and only 117,856 square feet of net buildable area after deducting 10,210 square feet of Town
    road areas. Net buildable area is defined at § 74-263 of the Code as “The gross tract area minus all lands located within existing and proposed street right-of-ways …”.
    The Development as proposed does not contain the minimum lot area required and is therefore not in compliance with current Walworth County zoning regulations.
  4. Shoreland Regulation Deficiency.
    Code § 74-174 subsection E) entitled “Impervious Surfaces”
    Provides that impervious surface standards are established to protect water quality and fish and wildlife habitat and protect against pollution of navigable waters. Impervious surface standards shall apply to the construction of any impervious surface that increases
    the percent of impervious surface that is or will be located on any riparian lot or parcel.
    The proposed Development is located on a riparian lot that has approximately 138 feet of Lake Beulah shoreline frontage. The Code provides that a riparian lot or parcel is allowed up to 15% impervious surface. A riparian lot or parcel may exceed the 15% impervious
    surface limit up to 30% impervious surface but requires a County approved permit and mitigation plan and measures to be implemented by the property owner.
    If the riparian lot or parcel is identified by the DNR as a “highly developed shoreline” it may be allowed up to 40% impervious surface for commercial, industrial or business land uses. The Development does not comply or satisfy these Code limitations. The
    Development as proposed will contain 46% impervious surface calculated as follows:
    Hotel Area: 11,523 sq. ft.
    Pool/patio/walk-ways: 4,732 sq. ft.
    Parking/Driveways: 31,201 sq. ft.
    Retaining Walls: 1,019 sq.ft.
    Town Road Area: 10,210 sq.ft.
    Total 58,685 sq. ft.
    The 40% maximum impervious surface allowed by the Code for the Development on the 128,066 square foot riparian lot is only 51,227 square feet. The Development as proposed exceeds the maximum impervious surface allowed and is therefore not in
    compliance with current Walworth County zoning regulations.
  5. Water Supply Well Deficiency.
    The Developer proposes to use an existing 61-year-old drinking water supply well to supply safe and adequate water for the Development. In support of this proposal the Developer submits a “Preliminary Well Construction Review” letter dated June 17, 2020 from its engineers The Sigma Group, Inc. (the “Sigma Letter”) The Sigma Letter clearly
    reports that its review and conclusion that the existing well and subsurface geology is adequate for the Development is based almost exclusively on the 1959 well construction records. No evidence or information is given about the pumping capacity of the existing
    well. No evidence or information is given about the current integrity of the 230’ annular seal of the well. No evidence or information from a qualified hydrogeologist is given to support the Developer’s statement that the Development will not impact neighboring wells or Lake Beulah. The need for additional pumping information, current well testing, and hydrological analysis of the Development impacts is supported by LBMD’s engineer Bob Nauta and RJN Environmental Services, LLC (the “RJN Memorandum”).
    LBMD submits and incorporates herein by reference as Exhibit 2, a RJN Memorandum as substantial evidence to establish that additional environmental study is required before the existing water supply well can be deemed adequate for the Development. More specifically Code § 74-40 provides: “No zoning permit shall be issued until a safe and
    adequate water supply and sewage disposal system is assured and a sanitary permit is issued”.
    The Development as proposed provides no evidence that a safe and adequate water supply is assured and is therefore not in compliance with current Walworth County zoning regulations.
    The Land Use Plan for the Town of East Troy: 2050 Map A.3 (the “Comprehensive Plan”) recognizes that the approved and authorized land use for W13040 Beach Road is commercial. More importantly, the Comprehensive Plan recognizes that the approved and authorized land use for the adjacent properties is residential and primary environmental corridor. The density, height and size of the proposed Development is not consistent with the existing adjacent residential and environmental land uses and is therefore not consistent with the Comprehensive Plan. It is the intent of County zoning to: (i) provide buffering between residential development and non-residential uses; (ii) protect the quality and abundance of ground water resources; and (iii) protect and Joe Klarkowski, Chairperson Re: Lake Beulah Management District Objection to 68 Unit Hotel Development August 5, 2020 Page 4 of 4 restore environmentally sensitive areas, biological diversity, minimize disturbance to existing vegetation, and maintain environmental corridors. See Code § 74-29 (18), (21), and (22).
    The Development as proposed is not consistent with the Comprehensive Plan and is therefore not in compliance with current Walworth County zoning regulations.
    Finally is important to recognize the legal standard that must be applied to conditional use permit applications as established by Wis. Stat. § 62.23(7) (de). The applicant must demonstrate that the application and all requirements and conditions established by the
    Town and County ordinances relating to the conditional use are or shall be satisfied, both of which must be supported by substantial evidence. “Substantial evidence” is a defined term which “means facts and information, other than merely personal preferences or
    speculation, directly pertaining to the requirements and conditions an applicant must meet to obtain a conditional use permit and that reasonable persons would accept in support of a conclusion.”
    The Developer’s application for conditional use approval falls far short of presenting substantial evidence to allow reasonable persons to accept a conclusion that the Development satisfies all requirements and conditions of the Town and County ordinances regulating zoning, parking, lot area, shore land, and safe and adequate water supply. The conditional use application for the Development must be denied.
    Respectively submitted on behalf of LBMD,
    Michael J. Bauer
    e-mail: [email protected] MJB/dlb
    Enclosures
    cc: Kim Buchanan-Town of East Troy Town Clerk
    Nancy Russel-Walworth County Board Chair
    Mark Luberda-County Administrator
    Michael Cotter-Director Land Use & Resource Management
    Darrin Schwanke-Walworth County Zoning Officer
    Dave Bitter-Lake Beulah Management District President