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8.2 PCSR 02-28-2023Request for Action To Item Number Planning Commission 8.2 Agenda Section Meeting Date Prepared by Work Session February 28, 2023 Chris Leeseberg, Senior Planner Item Description Reviewed by Home Occupations Zack Carlton, Community Development Director Reviewed by Mark Pistulka, Building Official Action Requested Discuss if the city’s home occupation ordinance and provide staff direction regarding potential changes to the current standards. Background/Discussion With the approval of a few home occupation CUP’s in recent years, building code issues have surfaced pertaining to commercial operations being run out of a residential property. The state building code does not differentiate between a business operating on a residentially zoned property versus one on a commercially zoned property. With state and city regulations, a registered architect or engineer is required to prepare documents for the building as commercial uses open to the public are required to meet all applicable commercial building, electrical, plumbing, mechanical, and fire codes. It does not matter if the home occupation is an accountant, auto repair, office worker, hair salon, photography studio, woodworking, etc. Section 30-83 (c)(1) states: With each application for a building permit, and when required by the building official for enforcement of any provisions of this article, two sets of plans and specifications shall be submitted together with a certificate of survey of the lot upon which the proposed building or construction is to be done. Section 30-83 (c)(2) states: All plans and specifications, except for single-family dwellings, or any other buildings exempted by Minnesota Statute or the Minnesota State Building Code, shall be prepared and signed by a registered architect or a registered professional engineer duly qualified by registration as required by Minn. Stats. § 326.02. Several properties that recently received CUP’s noted significant expenses are required to meet the building code requirements and challenges in finding professionals to do the design work as the jobs are typically too small. Residential houses, garages, and sheds/pole buildings are typically not constructed with commercial uses/codes, and the conversion to do so, if possible, can be extremely expensive/difficult. Items including commercially compliant ingress/egress, standard and ADA accessible restrooms, stair slopes, hazardous material storage/ ventilation/disposal, plumbing, and electrical are not typically considered with construction of a home or accessory structure. Staff would like feedback regarding prohibition of home occupations operated from attached or detached accessory structures, putting the focus back on occupations, working out of the home/house. For clarification, The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity. Updated: January 2023 allowing home occupations to be operated from accessory structures, the city must adhere to the ordinance and state building/electrical codes regardless of how expensive, difficult, or time consuming it may be for the homeowner. Staff reviewed 12 neighboring communities and 10 of the communities allow home occupations to be conducted only in the home. Princeton and Ramsey allow them in detached accessory structures with Princeton not allowing more than 625 square feet. Staff has spoken with other community inspectors and many of them stated they do not address the registered architect or engineer topic. Additionally, under the current ordinance, a person not residing on the property can apply for a CUP to operate a home occupation. The intent had been to allow home occupations only to be operated by the property owner while living on premise. This can be accomplished by adding “occupations not conducted by an individual who resides on the property and uses the residence as a primary address for legal purposes” in the prohibited activities section. Financial Impact None Mission/Policy/Goal  Support the growth and development of residential and commercial areas  Ethical, efficient, and responsible Attachments  City Comparisons  Sec. 30-801. Home occupations  Section 30-83. Permits, inspections and fees; surcharge; plans and specifications House Accessory Structure Architect or Engineer?Notes Elk River House and attached garage Yes, with a CUP Andover Yes With Interim Use Permit or Special Home Occupation Permit Anoka House only Big Lake House only Prohibited within accessory buildings and attached garages. … shall meet all "applicable" building and fire codes. Prohibited above 3 parking spaces. IUP for exeptions. Only 1 EE nice purpose statement Brooklyn Park House only Maple Grove House only Monticello House only Otsego House Only No operation in attached or detached garages. must meet building codes No exterior storage of equipment or materials. Only 1 EE list of allowed home occupations Plymouth House only Princeton house and detached detached use shall not exceed 625 SF and not more than 25% of dwelling CUP required for all. Conducted by no more than two people Ramsey House and garage prohibits anything related to internal combustion engines Anything beyond home office processed as a CUP and located in R- 1 district. clearly owner occupied. Run with applicant not land Rogers House only St. Michael House only Created: 2022-10-17 18:42:09 [EST] (Supp. No. 56) Page 1 of 2 Sec. 30-801. Home occupations. (a) Purpose. The purpose of this section is to provide a means, through the establishment of specific standards and procedures, by which home occupations can be conducted in residential neighborhoods, within a dwelling unit, without jeopardizing the residential character or health, safety and general welfare of the surrounding neighborhood. In addition, this section is intended to provide a mechanism enabling a distinction between permitted home occupations and conditional home occupations, so that permitted home occupations may be allowed through an administrative process rather than a quasi-judicial hearing process. (b) Prohibited activities. No home occupations (permitted or conditional) shall: (1) Constitute a fire hazard to neighboring residences, adversely affect neighboring property values, or constitute a nuisance or otherwise be detrimental to the neighbors because of excessive traffic, noise, glare, odor, electrical interference, vibration, dust and other nuisance or safety hazards. (2) Adversely affect governmental facilities and services, including roads, sanitary sewers, water, storm drainage, garbage service, police service and fire service. (3) Adversely affect sensitive environmental features, including lakes, surface water and underground water supply and quality, wetlands, slopes, floodplains and soils, or other factors as found relevant by the city. (4) Involve the use of hazardous materials or activities. (5) Involve any of the following: body shops, machine shops, ammunition manufacturing, flea markets, motor vehicle repairs within the Urban Service District, motor vehicle sales, escort businesses, sexually oriented land uses, gun repair and/or sales, or other objectionable uses as determined by the city council. (c) Permitted home occupations. Permitted home occupations (occupation) shall be allowed subject to the conditions of this section, other applicable city ordinances and state law. If the city denies establishment of an occupation to a resident, the resident may appeal the decision pursuant to the provisions of subdivision II of division 2 of this article. Permitted occupations are subject to the following criteria: (1) The occupation may only be conducted by an individual who resides on the property and uses the residence as a primary address for legal purposes. (2) The occupation shall be carried on entirely within the dwelling unit. (3) There shall be no exterior evidence of the occupation such as displays or exterior storage of business equipment, materials, merchandise, inventory, and/or heavy equipment. (4) No noise, lights, odors, dust, gas, heat, vibration, glare, or other physical manifestations resulting from the occupation shall be evident beyond the boundaries of the property on which the occupation is being conducted. (5) The occupation shall not require internal or external construction features not customarily found in single-family residential dwellings. (6) A maximum of one full-time employee, or equivalent, other than those persons who customarily reside on the premises shall be employed. (7) Occupations involving teaching shall not exceed two pupils at a time. (8) Signage shall not exceed four square feet in area and shall be mounted flat on the outside wall of the dwelling unit or attached accessory structure. Created: 2022-10-17 18:42:09 [EST] (Supp. No. 56) Page 2 of 2 (9) Occupations shall not be serviced by delivery vehicles larger than 26,000 pounds gross vehicle weight. (10) No occupation shall have outside employee and/or customers between the hours of 9:00 p.m. and 7:00 a.m. (11) Occupations shall not create a parking demand in excess of that which can be accommodated in an existing driveway, where no vehicle is parked closer than 15 feet to the curbline or edge of the paved surface nor is parked within any right-of-way. (12) The operation of any wholesale or retail business, unless it is conducted entirely by courier, email, or mail, and/or does not involve the sale, shipment, or delivery of merchandise to or from the premises, is prohibited. On-site sales shall be limited to those clearly incidental to services provided in the dwelling. (13) Permitted home occupations may not involve repair of internal combustion engines or use of equipment which is not normally found in a home, except that equipment which is typically in an office may be used. (d) Conditional home occupations. Home occupations that do not involve prohibited activities but that exceed the permitted home occupation criteria may be allowed with approval of a conditional use permit by the city council pursuant to the provisions of subdivision II of division 2 of this article. (e) Inspections. The city may at any reasonable time inspect the home occupation to determine if the applicant is strictly adhering to the criteria for a permitted home occupation or the conditions placed on a conditional home occupation. (f) Revocation or expiration of a conditional use permit for home occupations. (1) Expirations of conditional home occupations shall be as set forth in section 30-656. (2) Revocation of conditional use permits for home occupations shall be as set forth in section 30-659. (Code 1982, § 900.25; Ord. No. 05-09, § 2, 4-4-2005; Ord. No. 14-16, § 1, 11-17-2014; Ord. No. 19-11, § 1, 5-20- 2019) Cross reference(s)—Licenses and business regulations, ch. 38. Created: 2022-10-17 18:42:04 [EST] (Supp. No. 56) Page 1 of 1 Sec. 30-83. Permits, inspections and fees; surcharge; plans and specifications. (a) Permits, inspections and fees. Permits and inspections shall be as provided by the Minnesota State Building Code. The council shall establish the fees and charges from time to time by resolution. (b) Surcharge. In addition to the required permit fee, the applicant shall pay a surcharge to be remitted to the state department of administration as prescribed by Minn. Stats. § 16B.70. (c) Plans and specifications. (1) With each application for a building permit, and when required by the building official for enforcement of any provisions of this article, two sets of plans and specifications shall be submitted, together with a certificate of survey of the lot upon which the proposed building or construction is to be done. (2) All plans and specifications, except for single-family dwellings, or any other buildings exempted by Minnesota Statute or the Minnesota State Building Code, shall be prepared and signed by a registered architect or a registered professional engineer duly qualified by registration as required by Minn. Stats. § 326.02. (Code 1982, §§ 1000.00(3), 1002.04; Ord. No. 03-07, §§ 3, 4, 3-24-2003; Ord. No. 06-10, 10-2-2006)