19:45 29.07.2007 | All news from "Real Estate News"
Biofuels Owner Battles LR Over Zoning Conversion
A city-initiated rezoning of a large swath of downtown Little Rock in 2000 to "Urban Use" that largely went unnoticed has left Rawls in the cold, questioning the viability of his green business.
When Rawls, 60, sought to purchase the abandoned fueling station at Eighth and Chester streets in 2006, he had the property appraised. The appraisal report, prepared by Hugh Keller of Keller Appraisal Service Inc. of North Little Rock, listed the property zoning as "I-2 according to officials of the City of Little Rock." The "I-2," or "light industrial," zoning allows for myriad uses, but most importantly, it permits the existence of a free-standing sign separate from the building and the display of merchandise outside the building.
Since the profit margins on fuel sales are meager, Rawls contends that fuel stations survive by competitive fuel prices that attract consumers who in turn buy cigarettes, Red Bull or other higher profit items.
Rawls intended to provide several other services to ensure the survival of his business, including auto detailing and the sale of converted vehicles that use higher percentages of ethanol than do conventional vehicles.
After Rawls learned the property zoning would allow him to perform these practices, he bought the property in March 2006 from Carroll Sisson.
When Rawls sought sign permits in late September to display the name of his business and the price of his fuel, he was informed that he was not allowed to have a free-standing sign. Rawls was stunned to discover that the property, along with most of downtown Little Rock, had been rezoned in March 2000 to an Urban Use District, which did not allow outdoor display of merchandise either.
"That's not the first time we've seen things like that," said Robert Stebbins, chair of the planning commission. Stebbins described a similar incident with Razorback Pizza in the Bella Rosa Commerce Center on Cantrell Road in Little Rock. The operations director, unaware before the opening of the restaurant that the zoning of the center stipulated operating hours of 7 a.m. to 8 p.m., petitioned the city for a change in the zoning ordinance. The city Board of Directors denied the request.
"It's just that the system breaks down and it's sad when people like Mr. Rawls end up with a less than desirable situation," Stebbins said.
Tony Bozynski, director of planning and development for the city of Little Rock, said, "The zoning prior to this Urban Use District, a number of people -- the community -- felt it wasn't creating the type of downtown area that everybody wanted." Bozynski described this type of downtown area as a "pedestrian friendly, 24/7 type environment."
The zoning department conducted a survey to learn how property owners felt about the rezoning of roughly Interstate 30 on the east, Cross Street on the West, I-630 on the south and the Arkansas River on the north. The city received 94 responses to the 580 surveys distributed. A scant majority of 54 percent supported the prohibition of free-standing signs. The survey did not include a question regarding the outdoor display of merchandise.
Future-Little Rock Initiative, a strategic planning process begun in the 1990s, developed the Downtown Framework committee, which instigated the rezoning, Planning Manager Walter Malone said. But it received little attention. Bhupaul Jailaill, owner of Jai's European Auto Repair at 811 Broadway, said he was unaware of the rezoning.
For his part, Bozynski thought a decision had been made not to conduct a survey.
Mistakenly Appraised
Disheartened and confused, Rawls wondered how the property he recently purchased could be mistakenly appraised three times between the rezoning in 2000 and the purchase in 2006.
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