(A) Lots of record. All lots of record, existing as of the date of this chapter and all prior zoning ordinances in the city, that do not meet the minimum lot area and lot width requirements, may be allowed as building sites without a variance from lot size or width requirements provided that it satisfies all of the following:
(1) The use is permitted in the zoning district and is not precluded by any applicable overlay district;
(2) The lot was created compliant with official controls in effect at the time;
(3) The setback requirements of this chapter are met; and
(4) The applicable wastewater regulations are met.
(B) Lots of record in shorelands. Lots of record in the office of the County Recorder as of the date shoreland regulations were adopted for the city that are located within a shoreland and do not satisfy the requirements of this chapter for lot size or lot width are subject to the following:
(1) A nonconforming single lot of record located within a shoreland area may be allowed as a building site without variances from lot size requirements, provided that:
(a) All structure and septic system setback distance requirements can be met;
(b) A Type 1 sewage treatment system consistent with Minn. Rules Chapter 7080, can be installed or the lot is connected to a public sewer; and
(c) The impervious surface coverage does not exceed 30% of the lot.
(2) In a group of two or more contiguous lots of record under a common ownership, an individual lot shall be considered as a separate parcel of land for the purpose of sale or development, if it meets the following requirements:
(a) The lot must be at least 66% of the dimensional standard for lot width and lot size for the shoreland classification consistent with Minn. Rules Chapter 6120;
(b) The lot must be connected to a public sewer, if available, or must be suitable for the installation of a Type 1 sewage treatment system consistent with Minn. Rules Chapter 7080, and local government controls;
(c) Impervious surface coverage must not exceed 30% of each lot; and
(d) Development of the lot must be consistent with the city’s comprehensive plan.
(3) A lot not meeting the requirements to be considered a separate parcel of land for the purpose of sale or development as set out above must be combined with one or more contiguous lots so they equal one or more conforming lots as possible.
(4) Notwithstanding the requirements to be considered separate parcel of land for the purpose of sale or development as set out above, contiguous nonconforming lots of record in shoreland areas under a common ownership must be able to be sold or purchased individually if each lot contained a habitable residential dwelling at the time the lots came under common ownership and the lots are suitable for, or served by, a sewage treatment system consistent with the requirements of M.S. § 115.55 and Minn. Rules Chapter 7080, or connected to a public sewer.
(5) In evaluating all variances, zoning and land use permit applications, or conditional use requests, the city shall require the property owner to address, when appropriate, storm water runoff management, reducing impervious surfaces, increasing setback, restoration of wetlands, vegetative buffers, sewage treatment and water supply capabilities, and other conservation-designed mitigation actions.
(6) A portion of a conforming lot may be separated from an existing parcel as long as the remainder of the existing parcel meets the lot size and sewage treatment requirements of the zoning district for a new lot and the newly created parcel is combined with an adjacent parcel.