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.