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Mr. Lind stated that the City had approved a Variance for Steve Caouette on Sibley Lake `-- for a basement. The Planning Commission advised that Mr. Caouette met the setbacks. The Planning Commission looks at each application merits. Rebuilding on existing footprint, bigger basement and increased height won't change the feel of the lot or the site; we need to move items out of the setback. We would have to set an impervious surface we are comfortable with. For an over the counter permit the impervious coverage would need to be at 20 %; a Conditional Use Permit would be required to increase the impervious coverage to 25 %. Mr. Lind stated he would need to discuss this with his wife. He needs asphalt on the hill and by the garage doors. The Planning Commission pointed out that there is a 30' X 40' area within the setback for the driveway or 1,200 square feet. If that is removed, the impervious coverage is down to approximately 27 %. Mr. Lind would still need a stonnwater management plan at 25 %. The home could be built attached to the garage, and walk from the garage to the main level of the house with a walkout basement. Mr. Hallan stated he has no problem supporting a full basement on the existing footprint, but the applicant would need to develop a stormwater management plan to 25 %. The Planning Commission offered the following options for the applicant to discuss with his wife: 1. Maintain the structure as it is, fix basement wall; 2. Put in the basement he wants, 2 feet higher, but bring the impervious coverage to 25% with a stormwater management plan. 3. Remove the house and build a new one within the building envelope while (a) bringing the overall impervious coverage down to 20% or (b) bring overall impervious coverage down to 25% with stormwater plan. Mr. Habein stated the City has lakes that all have small lots with elevation problems and buildings that are too close to the water, well inside the setbacks. He recommends we both try to compromise and come up with something workable for the applicant, option 2. The Staff Report should state the deck is within the lake setback, not along Pequot Blvd. Mr. Habein further stated he would be satisfied with 25% impervious coverage with a stormwater plan including swales and retention areas. The basement could be raised by 2 courses changing the size of the basement to that of the existing structure footprint. The dwelling needs a solid foundation and the footprint is not changing. Mr. Marohn explained that the Statutes say a City cannot deny the property owner the right to maintain what they have; it does allow the City to make reasonable conditions to MINUTES 4 Pequot Lakes Planning Commission October 21, 2010