Growing demand for luxury storage sparks debate in Twin Cities suburbs over 'barndominiums'

Christopher Keppel moved to Victoria about 15 years ago because he wanted to be near the lake and restaurants.

But he fears the charm of the southwest metro community will fade when his neighbor builds a residential structure with a 6,000-square-foot garage.

"It's almost identical to having a Tires Plus in my backyard," said Keppel, who is leading a petition drive urging city officials to revoke the building permit.

Call them car barns, garage condos or "barndominiums," the demand for luxury storage spaces, sometimes connected to or including gathering spaces, is rising across Minnesota and the nation. People are building them in the Twin Cities metro area and in the Brainerd Lakes area as parking for car collections and seasonal toys, such as boats, snowmobiles and all-terrain vehicles.

So residents and city officials increasingly find themselves in emotionally fraught debates about where large garages can be built and what sorts of amenities they can offer.

Facilities offering storage for luxury or classic vehicles set up in Chanhassen and Eagan, among other places. Some units include kitchens, wet bars or fireplaces. Some have spaces to hold events. Online resale prices for some condos range from about $350,000 to $650,000.

Some cities have embraced them. In others, residents have fought them, arguing the facilities will depress property values and diminish quality of life if traffic picks up around homes.

"You understand this is where people live," Victoria Mayor Debra McMillan said. "It's very personal to them, and I understand and I sympathize."

Northwest of the metro in Big Lake, City Administrator Hanna Klimmek was skeptical when a resident approached officials in 2018 with the idea of building car condos there.

"I can tell you that his idea is wildly successful," said Klimmek, who noted that Big Lake Car Condos has now grown to include nearly 60 units. "Folks are looking for opportunities like this to go to a community, a community meaning this car community where everybody has the same passions."

The Big Lake facility is in an area zoned for commercial, Klimmek said.

Outgoing Orono leaders last month approved a measure aimed at allowing garage condos in an industrial area.

The fact that these types of facilities exist, Victoria resident Keppel argues, is exactly why they shouldn't be allowed in his residential neighborhood.

Struggling to find comparisons

Keppel, who has worked as a real estate agent, said he's seen properties that have garages large enough to hold six or seven vehicles, but "I can't see anything that even approximates" what's proposed for the lot in the 6300 block of Smithtown Road.

The building permit approved by Victoria outlines plans for a five-bedroom house, with a ground floor running roughly 96 feet long. It's connected via a breezeway to a garage that is about 152 feet long, with a driveway nearly encircling it.

The permit lists the owner as CHM LLC without listing a person's name. Someone who answered a number listed on the permit for CHM LLC told the Minnesota Star Tribune they didn't know what the company was. A message left with the building contractor wasn't returned.

Keppel asked Victoria officials to revoke the building permit, arguing, among other things, that the size of the garage and its proportion to the living space appeared to violate city zoning rules. He said the footprint of the garage appears to include enough space for 27 cars, or more than 50 if lifts are installed.

"If the city believes they would like to promote the idea of these types of things, they need to create a new zoning category that specifically says this," Keppel said.

But Victoria building officials say their review shows the building does meet the local definition and size requirements for a residential dwelling. And McMillan, the mayor, is supporting their analysis.

"It met every ordinance, every zoning requirement, and the permit was issued by our staff," McMillan said. "If it meets all the requirements in the ordinance — and it does — we cannot arbitrarily revoke a permit because we don't like it."

Keppel, meanwhile, is worrying that his property value will drop if the character of the neighborhood changes. And he's dreading how his daily life might change when the garage is built.

"I'll have all of these car lights aimed directly into my house. I'll have sports cars circling the building. I'll probably have large groups of people routinely on their property," Keppel said. "It's just not a single-family home."