A property owner who wants permission for a large retail lumberyard on his March Point property is appealing a Planning Department decision that the project does not meet the city’s industrial zoning codes.

“It’s a straightforward zoning interpretation,” said City Planning Director Ian Munce, who made the decision.

However, Joel Douglas, who owns the Harbor Business Center at 9080 March Point Road, is arguing that retail use is grandfathered at the site because some small-scale retailers have operated there continuously since before the city annexed the area. He said the city’s refusal to allow the project contradicts promises made at the time of the annexation.

Douglas is also suing the city for $2,000 and other costs.  The appeal will be heard by the Anacortes Board of Adjustment at its next meeting at 7 p.m. Thursday, Sept. 6, in City Hall.

In letters to the Anacortes American, to the community and to the Anacortes Planning Commission, Douglas accuses the city of reneging on promises.

“When we were annexed, we were told all existing uses would be grandfathered,” Douglas said. “Somebody lied to us! Now we are told that we can’t do retail. Is this business as usual in Anacortes?”

Munce said that the existence of small-scale retail did not convey permission for a large-scale lumberyard. The center has housed companies that have installed and sold stained glass, flooring, spas, cabinets and countertops.

According to documents provided by Douglas, Harbor Lands Inc. sent a letter to the city on Aug. 6 announcing its intention to sell the business center to Oso Lumber and Hardware for a building supply center and asking the city to voice any objections.

Oso Lumber, based in Arlington, has seven locations including operations at Sedro-Woolley, Ferndale, Granite Falls and Spanaway, which sell hardware, tools, doors, paint, windows, lumber, insulation and framing, siding, roofing and foundation materials. According to the company’s Web site, some locations focus on retail sales, others on wholesale sales, manufacturing and installation. The retail stores are completely stocked lumber yards ranging from one to 12 acres, each with counter sales and contractor sales.

In his letters, Douglas said his company purchased the land because of its good location, which is between Highway 20 and March Point Road near the Ford dealership. He said he purchased the land before annexation, which he opposed, and that retail was allowed by county code at that time.

The city zoning code notes that nonconforming uses of land in the industrial area, such as retail, may not be enlarged or increased to occupy a greater area of land than was occupied when the zoning was adopted, and that the nonconforming use may not be moved on the property without permission of the Board of Adjustment.