City Council Study Session Agenda and Packet 2013 05 14

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CITY COUNCIL COMMUNICATION SUBJECT: LMC REGULATIONS REGARDING FOOD TRUCKS DATE: MAY 14, 2013 PAGE4 OF 5 and community business owners. The general discussion highlighted the following observations: Concerns 1) Unfair business competition for established “brick and mortar” restaurants in Downtown and along McCaslin 2) Sales tax collection and loss of permit fees and property taxes when compared to “brick and mortar” restaurants. 3) Non-local employment growth 4) Public health and safety 5) Ensuring any regulation provides fairness and equal treatment to property owners and business operators. Opportunities 1) The strategic use of special event permits and there catalytic development opportunities for emerging markets (Street faire worked and is working) 2) Food trucks in the CTC make sense. The food trucks bring food service to an area of town that is void of restaurants 3) Food trucks are fun and support unique community activities (fourth of July, movie in the park, etc.) STAFF ASSESSMENT: Staff believes the City’s special use criteria provide City Council a powerful tool in ensuring a special use permit for a food truck or outdoor food sales operation would work within any specific zone district. Four of the five criteria provide staff and potential applicants clear understanding of the City’s performance expectations. Staff believes the LMC should be amended to clarify the City’s expectations related to the second SRU criterion: That such use/development will lend economic stability, compatible with the character of any surrounding established areas: This criterion may be met in certain locations, but may not necessarily be met in others. For example, food trucks may lend economic stability in an area that is void of food options, but they may disrupt economic stability in an area with existing eating options. At the present time the determination of economic stability is made on a case-by-case basis. This case-by-case review does not provide a land owner, or business operator certainty as to whether or not they will be able to operate a food truck on a certain property, or whether or not a food truck could operate next store to their business. Council may desire to more formally implement location criteria for food trucks and outdoor food sales operations. Staff believes the use of clear spatial relationships and operational guidelines, along with public input, could provide City Council the tools necessary to distinguish between probable economic benefit and liability with the surrounding businesses (SRU criterion #2) 5