Hearing Examiner Yoshi Kumara on May 20 heard a request by Paragon Homes LLC to allow a three‑unit common‑wall residential building at 413 Trustee Street SW to be subdivided so each unit may be individually owned.

Staff recommended approval with conditions, saying the proposal is listed as a conditional use in the R‑7 multifamily zone and that the site plan conforms to applicable city standards. Marshall Reed, lead city planner for the City of Ocean Shores, told the examiner the project “appears consistent with the purpose of the district” and described required conditions including construction and fire‑code compliance, parking and storm‑drain approval, landscaping, utility assessments and system development charges.

The issue matters because the conditional use hearing does not ask permission to build three attached units — that would be a permitted use under the zoning — but instead asks permission to subdivide the parcel so the units can be sold individually rather than remain under single ownership and rented. The subdivision requires explicit review under Ocean Shores municipal code provisions for common‑wall residential subdivisions and the city’s conditional‑use criteria.

Reed summarized the planning analysis and zoning references, saying the parcel is in an R‑7 zone and, depending on the exact lot area, could support up to four dwelling units under the code. Reed identified the controlling code sections cited in the staff report and notice materials (Ocean Shores Municipal Code sections addressing conditional uses in the R‑7 zone, density rules, parking, landscaping and utility assessments) and admitted staff exhibits into the record.

Neighbors who testified opposed the subdivision on the grounds of neighborhood character, lot size and parking. Derek Bumrungsiri, a property owner near the site, said he was “in opposition of allowing for this conditional use permit” and cited concerns that the street is “mostly single family” and that subdivision could harm property values and push on‑street parking. Kathleen Kachman, who said she owns the nearby property at 476 Trustee Street, added that subdividing a 0.2‑acre parcel into three lots “makes each property extremely small” and raised safety concerns because Trustee Street in that area has no sidewalks and is used by pedestrians and children.

Larry Butler, the project representative and surveyor, told the examiner he concurred with staff and noted that if the structure were rented rather than subdivided it would still create three separate homes on the lot but without the conditional‑use hearing. Butler said the project will provide parking “in the front” and asserted that individual ownership creates stronger incentives for upkeep: “usually people that own their home take better care of it.”

Kumara clarified factual items raised in testimony, asking Reed about a discrepancy in stated lot area; Reed explained the staff‑report figure derived from the county geodatabase while the site plan uses a physical survey and that the survey/recorded plat would control if dimensions were in question. Reed also explained the notice process and how the planning department generates the 300‑foot mailing list through GIS tools.

The hearing examiner left the written record open until the end of the day for additional comments and said he intends to issue a written decision within 10 business days after the record closes. No final decision was made at the hearing.

Authorities referenced in the hearing were the City of Ocean Shores municipal code sections cited in the staff report governing conditional uses in the R‑7 zone, density standards, parking, landscaping and utility/system development charges. The transcript includes the staff citations as presented in the hearing record.