by John Gessner
Thisweek Newspapers

A controversial used-car "superstore" proposed near south Burnsville neighborhoods gained the Burnsville City Council's reluctant 3-2 approval March 3. But a stipulation prohibiting vehicle auctions on the 14.5-acre site raises questions about the project's future.

CarMax Inc., which bills itself as the "auto superstore," wants to build a dealership on the southwest corner of Southcross Drive and Burnhaven Drive. It was the site of a Lifetime Fitness club that was torn down last summer.

Neighbors to the north and west oppose the auto store, fearing increased noise, lights, traffic, vehicle exhaust and storm runoff.

Burnsville City Council members said a vote against it could invite a lawsuit since the property's general business zoning allows open sales and storage lots as conditional uses.

But one of the conditions the council attached to the project contradicts the CarMax business model. The condition prohibits wholesaling and vehicle auctions on the site, which officials say aren't permitted under the B-3 (general business) zoning ordinance.

Nationwide, the Richmond, Va.-based company gets 36 percent of its sales from dealer-to-dealer auctions, said Joe Jagdmann, real estate manager for CarMax.

"These auction sales are crucial to our development of this project," he told the council.

After the meeting, Jagd-mann referred questions to company spokeswoman Trina Lee in Richmond.

"Obviously, we had hoped for approval of our entire proposal last night," Lee said March 4. "And we're currently evaluating our options and determining our next step."

John Clough, a resident spokesman who met with CarMax officials in neighborhood meetings, predicted the company would sue the city over the auction prohibition.

Burnsville is one of three locations the company is seeking in Minnesota, Jagdmann said.

It has a permit to build in Maplewood and also seeks a northwest metro site, he said. CarMax has locations in 25 states.

A petition against the project was signed by 158 residents of the Earley Lake Estates, Courtyard Estates and Regent at Burnsville neighborhoods.

They say the loss of the fitness club last summer removed a buffer between their homes and the Buck Hill Road auto dealerships to the south.

"We realize we're not going to get another club," Clough, 1034 Earley Lake Place, told the council. "But this is not what we envisioned. This is very close to our homes."

The CarMax site would be "much bigger than any other car dealership in the area," Mayor Elizabeth Kautz said.

Plans call for a 52,000-square-foot building, up to 324 vehicles in the sales lot and up to 700 more parked behind a wall where auctions would be held.

The northern half of the site is within 1,000 feet of Earley Lake. Though runoff from the site worries many residents, city staffers say the company's runoff plan meets city requirements. Council approval included a deviation from shore land regulations, limiting the amount of hard surface on the property.

Flooding problems at some homes in the area aren't related to the site, according to staff.

Drawing on recommendations from the Planning Commission, which recommended approval after holding a public hearing Feb. 25, the council attached 19 conditions to the project.

"If those conditions are met, council would have no discretion to deny the use," City Attorney Andrea McDowell Poehler said.

"I can empathize with the dilemma you're facing down in that area," Kautz told residents. "We have limitations within law, but we're certainly going to do our best."

Council Member Liz Workman said she needed more information about traffic and noise. City Planner Chris Slania said CarMax would generate fewer daily vehicle trips than the fitness club did.

Workman asked if the company could postpone its request for more study.

"Unfortunately, we're out of time on our contract" to buy the property, Jagdmann said. "We have a contract with Lifetime Fitness."

All council members voiced reservations or opposition. "I don't like it either," Council Member Charlie Crichton said, "but I don't want to lose a lawsuit."

With Workman and Council Member Dan Gustafson squarely against the project, Kautz voted to approve it. "With great objection, aye," she said.

Kautz, Crichton and Council Member Dan Kealey voted for the project, with Workman and Gustafson against.

John Gessner is at burnsville.thisweek@ecm-inc.com.