Parks, Okoboji reach settlement

(Photos by Anitra Wolf) O'Farrell Sisters continues to operate as a nonconforming use in a residential neighborhood. The restaurant is located on Lakeshore Drive in a small building situated on a triangular-shaped lot. It overlooks Smith's Bay on West Lake Okoboji.

A prominent Lakes-area business owner and the city of Okoboji have settled a dispute out of court.

The agreement awards Okoboji Boats owner Leo "Butch" Parks $500,000 and allows the sides to avoid a trial that was expected to last between three and six weeks.

Parks filed his lawsuit in November 2005 after he felt the city was arbitrarily taking steps to prevent him from fully operating his business. Okoboji's city council ruled against him in a series of licensing, zoning and parking issues related to Okoboji Boat Works, a marina on West Lake Okoboji, and O'Farrell Sisters, a nearby restaurant owned by Parks.

Jury selection began Tuesday at the Dickinson County Courthouse, but was halted with the settlement agreement.

"The settlement provides a full release of all past claims made against the city of Okoboji, its former mayor and council members," said Parks' attorney Phil Redenbaugh, who added: "The parties start with a clean slate."

Lawsuits and court cases cropped up because the businesses in question have been in place longer than the the city's zoning ordinances have.

When that happens, properties are allowed to operate under preexisting regulations -- they generally don't have to change the way they've always done business as a nonconforming use.

In exchange for being grandfathered in, the property owner has the responsibility of maintaining the property "as is," to a degree. If the business is changed or expanded drastically, it would become a new establishment in the eyes of the government entity. The changes would then be subject to the most recent zoning requirements of the neighborhood.

"Essentially it puts Mr. Parks in the same position he was prior to starting this lawsuit," said Jim Clarity, who represented the city of Okoboji. "Okoboji Boats operates under a special use exception permit, which was granted to the previous owners in 1973."

Lakeshore Drive, leading up to the marina, remains narrow, with a substantial curve, according to Clarity. One of the city's concerns has been access for emergency vehicles -- when customers park on both sides of the street the city said it would have difficulty getting EMS or 911 vehicles to the marina area.

"If there's noise and there's parking problems -- and they're related to Okoboji Boats -- he'll have to police it," Clarity said of Parks.

Parks said the settlement is the beginning of a new chapter.

"Everyone wants the best for Okoboji and the Lakes region," he said. "My vision for Okoboji Boat Works and the marina district has not changed."

Redenbaugh also said the settlement was fair.

"He has a dream for the creation of a marina district in the area of Okoboji Boats and hopefully of the cooperation of the city, those dreams can someday be realized," the attorney said.