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9.1. PCSR 05-23-2023Request for Action To Item Number Planning Commission 9.1 Agenda Section Meeting Date Prepared by Work Session May 23, 2023 Chris Leeseberg, Senior Planner Item Description Reviewed by Home Occupations Zack Carlton, Community Development Director Reviewed by Action Requested Review the first draft ordinance amendment and provide direction to staff regarding which uses should require professional services. Background/Discussion Staff and the city attorney have had multiple conversations regarding home occupations operating out of the house and attached/detached accessory structures, as well as when there is the need for professional design services. The term “architect” will be used for various licensed professionals outlined in MN Stat. §326.03, subd. 1. It has been determined by the city attorney that the city can allow occupations within the home without an architect, as home occupations by their nature are expected to be within a house, and the occupations typically occurring do not pose detrimental effects on the neighborhood. Through state statutes, architects are not required for single family dwellings. The purpose of a CUP is to ensure a proposed project does not detrimentally affect the use and enjoyment of other residents in the vicinity and an architect is required to ensure a structure is designed and built to remain standing and protect all inhabitants based on the uses within the structure. Basing the need for an architect on uses that are detrimental to an area versus based on the occupancy of the structure is still of concern to staff. Ordinance Staff drafted the attached ordinance based on the direction from the commission to continue to allow occupations to occur in accessory structures. Various areas of the proposed ordinance are explained below. Hours of Operation Staff are recommending the hours of operation be prohibited between 7:00 p.m. and 7:00 a.m. Monday through Saturday and all day on Sunday. With many people getting home from work around 5-6:00 p.m., a neighboring business should not detrimentally affect the use and enjoyment of neighbors outside using their property in the evenings. 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 Prohibited Uses Staff are recommending motor vehicle repairs and/or sales be placed back on the prohibited activities as this use has been challenging for the past few years. Staff would like to discuss the option of exceptions to this, and the repair of internal combustion engines, for parcels over five acres in size. Staff are also seeking input on any other types of uses the commission would like to see placed on the prohibited activities list. Interim Use Permits During the previous work session, the commission was in favor of renters being allowed to operate a business from the residential property they are renting, through an Interim Use Permit (IUP) process. Staff are recommending the IUP be valid for a maximum of three years or until the lessee no longer resides on the parcel, whichever comes first. An amendment to an IUP can be processed if an extension is needed after the three-year permit. An IUP will be subject to any decisions made regarding architects. Conditional Use Permits (CUP) Staff are recommending two criteria for occupations being run out of an accessory structure. The property shall be outside of the Urban Service District, or on lots that are 2 ½ acres or larger within the Urban Service District, with no city services available. Any structure and/or outdoor storage area shall be set back a minimum of 150 feet from any existing structure on a neighboring parcel while maintaining accessory structure setbacks, whichever is greater. Professional Design Services Staff are recommending adding a section explaining city and state regulations for commercial businesses located in residential districts and to clearly outline what occupations need to have professional design services, again alleviating the need for staff to make the determination on which residential business owner is, or is not, required to hire an architect. Is it as simple as stating any use in accessory structures that has employees, customers, and/or patrons is required to have an architect? Late discussions with the city attorney indicate this is a zoning ordinance and requirements for an architect are a building permit issue. Staff will continue their conversation with the city attorney and hopefully have an answer at the meeting. Commercial Building Codes and Scenarios Once uses requiring an architect are determined by the council, it is staff’s interpretation of state statutes and building codes that even if a structure does not require an architect, it still must meet all applicable commercial building, electrical, plumbing, mechanical, and fire codes. An architect is just one piece of the project process. It is understood, from a zoning standpoint, how uses such as auto repair or cabinet shops with the storage of chemicals/solvents, fuels, dust, fumes, and loud tools would need to be reviewed through a CUP process. Direction received indicates the city can affirm these types of uses need to be reviewed/designed by a licensed professional. Here are a few scenarios showing some of the questions staff deal with when dealing with home occupations. What direction should be taken with a use that would have minimal impact on the surrounding area? The owner of a house has 16 acres with a 4,000 square foot existing detached barn finished on the interior, with another 9,000 square foot detached pole building adjacent to it. They want to operate a wedding venue from the barn and park patron vehicles in the larger pole building so they are not visible to the neighbors. The barn structure is laid out to hold 75-125 people and the space between the buildings can be utilized for outdoor weddings when the weather allows. The nearest home is about 800 feet away. There is no production of any products, minimal deliveries, no dangerous chemicals, or fumes, but possibly some party noise until 11:00-midnight. Receiving a CUP will address issues such as noise, hours of operation, alcohol, and traffic. Is an architect required for these residential structures and if not, do they still need to meet commercial building codes? What if this same barn was to be used instead for the retail sale of goat milk products to approximately 10-20 local consumers daily? A homeowner, through a CUP, wants to expand and make modifications to detached Garage-A and add on a 30’x30’ expansion to detached Garage-B. The expansion of Garage-B would house a kitchen area, toilet rooms, and showers while detached Garage-A would house an open room, primarily for prayer and meditation, for up to 60 people. This theoretically can be reviewed as a home occupation or as a commercial religious institution. What is required? If the commission has concerns with requiring architects for some residents and not for others, prohibiting occupations in accessory structures should be reconsidered and having home occupations occur solely in the home. Again, staff reviewed 12 neighboring communities and 10 of the communities allow home occupations to be conducted only in the home. Financial Impact None Mission/Policy/Goal  Maintain livable neighborhoods  Protect customers, patrons, and employees Attachments  Draft Ordinance Sec. 30-801. Residential occupations. (a) Purpose. The purpose of this section is to provide a means, through the establishment of specific standards and procedures, by which occupations can be conducted in residential neighborhoods, without jeopardizing the residential character or health, safety, and general welfare of the surrounding neighborhood as well as the users of the property. In addition, this section is intended to provide a mechanism enabling a distinction between permitted residential occupations and conditional residential occupations, so that permitted residential occupations may be allowed through an administrative process rather than a quasi-judicial hearing process. It is also intended to provide a mechanism enabling a distinction between when professional design services, such as an architect, are required. (b) Prohibited activities. No residential occupations (permitted or conditional) shall: (1) Be conducted by an individual who does not reside on the property and uses the residence as a primary address for legal purposes. (See interim residential occupations for an exception) (2) Operate between the hours of 7:00 p.m. and 7:00 a.m. Monday through Saturday and all day on Sunday. (3) Reduce the area of an accessory structure, for garage purposes, less than 440 square feet. (4) 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. (5) Involve any of the following: a. Ammunition manufacturing. b. Body shops. c. Escort businesses. d. Flea markets. e. Gun repair and/or sales. f. Hazardous materials or activities, as defined by the Minnesota State Building Code g. Machine shops. h. Motor vehicle repairs on parcels less than five acres in size. i. Motor vehicle sales. j. Outdoor storage. k. Repair of internal combustion engines on parcels less than five acres in size. l. Sexually oriented land uses. m. Wholesale or retail business, unless conducted entirely by courier, mail, or email. n. Welding. o. Others??? p. Other objectionable uses as determined by the city council. (6) Signage greater than four (4) square feet. (7) Adversely affect governmental facilities and services, including roads, sanitary sewers, water, storm drainage, garbage service, police and fire service, sensitive environmental features, including lakes, surface water and underground water supply and quality, wetlands, slopes, floodplains, and soils, or other. (c) Permitted residential occupations. Permitted residential 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 shall be carried on entirely within the dwelling unit (house). (2) 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. (3) 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. (4) Use equipment which is not normally found in a home (such as, but not limited to, stationary power tools, salon seats, vehicle hoists), except that equipment which is typically in an office may be used. (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. Occupations involving teaching shall not exceed two pupils at a time. (7) Occupations shall not be serviced by delivery vehicles larger than 26,000 pounds gross vehicle weight. (8) Occupations shall not create a parking demand more than that which can be accommodated in an existing driveway or approved surface area, where no vehicle is parked closer than 15 feet to the curb line or edge of the paved surface nor is parked within any right-of-way. (9) On-site sales shall be limited to those clearly incidental to the services provided. (d) Interim residential occupations. An occupation for a lessee, or equivalent, may be allowed with approval of an Interim Use Permit. The permit shall be valid for a maximum of three years or until the lessee no longer resides on the parcel, whichever comes first. (e) Conditional residential occupations. Residential occupations that do not involve prohibited activities but exceed the permitted residential 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. Conditional residential occupations are subject to the following criteria: (1) If located in an accessory structure and/or includes outdoor storage: i. Shall only be allowed outside of the Urban Service District or on lots that are 2 ½ acres or larger within the Urban Service District, with no city services available. ii. The structure and/or outdoor storage area shall be set back a minimum of 150 feet from any existing structure on a neighboring parcel while maintaining accessory structure setbacks, whichever is greater. iii. All outdoor storage areas shall be screened with a six-foot 100% opaque fence. Chain-link with vinyl slats or tarps attached to the fence will not satisfy this requirement. (f) Professional Design Services. Professional design fields, as outlined in State Statute 326.03 Subdivision 1, shall be required for any residential occupation occurring within an accessory structure (attached or detached). (1) Exceptions. As (reasons to be determined), professional design services shall be exempt from state statute sections 326.02 to 326.15 for the following occupations: i. Example for commission: Those occupations carried out in the single-family dwelling? ii. Example for commission: Those occupations that do not have employees, customers, and/or patrons? iii. _____ iv. _____ v. _____ (g) Inspections. The city may at any reasonable time inspect the residential occupation to determine if the applicant is strictly adhering to the criteria for a permitted residential occupation or the conditions placed on a conditional residential occupation. (h) Revocation or expiration of a conditional use permit for residential occupations. (1) Expirations of conditional residential occupations shall be as set forth in section 30- 656. (2) Revocation of conditional use permits for residential occupations shall be as set forth in section 30-659. (i) The property owner is responsible for the operations of the residential occupation and any liability related thereto.