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4.2. PCSR 08-22-2023Request for Action To Item Number Planning Commission 4.2 Agenda Section Meeting Date Prepared by Public Hearings August 22, 2023 Chris Leeseberg, Senior Planner Item Description Reviewed by City of Elk River Zack Carlton, Community Development Director  Ordinance Amendment to Sec. 39-801 – Home Reviewed by Occupations, updating the requirements and standards for home occupations, Case No. OA 22-06 Action Requested Recommend, by motion, approval of the home occupation ordinance amendment. Background/Discussion After four work sessions with the Planning Commission, staff drafted an amended home occupation ordinance based on direction from the Planning Commission. The following key components are recommended to be updated in the home occupation ordinance: Hours of Operation  Making a set time (7 a.m. – 7 p.m. Monday through Saturday) that cannot be negotiated, as a neighboring business should not detrimentally affect the use and enjoyment of neighbors outside using their property in the evenings. Prohibited Uses  Motor vehicle repairs – This use has been challenging for the past few years mostly because it occurs in residential outbuildings that were not built to commercial standards, and they have the presence of outdoor storage of vehicles. Motor vehicle repairs were introduced as conditional use in the 2019 ordinance update, prior to that, the use was prohibited.  Occupations in accessory structures – The commission determined that allowing home occupations in an accessory structure creates many frustrations for the public as well as difficulties for the applicant. For the applicant, architectural/engineering services likely would be required and recent applicants have indicated struggles finding architects to do such a small project and the costs associated with it. Historically, many of the home occupation permits were in existing accessory structures not set up for commercial uses.  Outdoor Storage – This use is more typical of larger operations that should be in industrial locations. Interim Use Permits (IUP)  Any occupation that does not meet the permitted requirements would be reviewed now only through the IUP process. The intent of the IUP is to evaluate, after a set amount of time, the impact a permitted home occupation is having on the neighborhood or the city. In contrast, once a CUP is approved, it runs with the property in perpetuity. A new IUP may be applied for after the original IUP has terminated. 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 Staff also reorganized the ordinance, removed some redundancies, and added/modified regulations. One addition since the last commission work session includes a section pertaining to valid preexisting businesses, recognizing these may exist without proper approvals and thus providing a mechanism for the use to possibly continue. The main goal of this amendment is to protect the quality of life in residential neighborhoods, protect the appearance of the neighborhood, and protect residents’ investment in their properties. By limiting home occupations to only the home, the commission believes these goals can be obtained. 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. A secondary goal is to limit the outreach to elected officials by removing the frustrations (time, costs, and upgrades) the property owner will face when an architect/engineer is required for their business to operate in an accessory structure. Also, existing improvements may be in the ground, under concrete floors, and behind walls that do not meet commercial code requirements, and this is difficult for the building department to inspect/approve, short of having the owner demolishing the area(s) of concern. Financial Impact None Mission/Policy/Goal  Maintain livable neighborhoods  Protect the quality of residential life  Protect the appearance of the neighborhood  Protect residents’ investment in their residential properties Attachments  Proposed Ordinance 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 occupations can be conducted in residential homes, 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 home occupations and interim 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 interim) shall: (1) Be conducted outside of the dwelling unit (house). (2) Be conducted by an individual who does not reside on the property and uses the residence as a primary address for legal purposes. i. Exception. An occupation for a lessee, or equivalent, residing on the property 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. (3) Operate between the hours of 7:00 p.m. and 7:00 a.m. Monday through Saturday and all day on Sunday. (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. i. Motor vehicle sales. j. Outdoor storage. (not including employee personal vehicle parking) k. Repair of internal combustion engines. l. Sexually oriented land uses. m. Wholesale or retail business, unless conducted entirely by courier, mail, or email. n. Welding. o. 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 home occupations. Permitted Home occupations (occupation) shall be allowed subject to the conditions of this section, other applicable city ordinances and state laws and statutes. 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) 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. (2) Use equipment which is not normally found in a home (such as, but not limited to, stationary power tools and salon seats), except that equipment which is typically in an office may be used. (3) The occupation shall not require internal or external construction features not customarily found in single-family residential dwellings. (4) A maximum of one full-time employee, or equivalent, other than those persons who customarily reside on the premises shall be employed. (5) Occupations involving teaching shall not exceed two pupils at a time. (6) Occupations shall not be serviced by delivery vehicles larger than 26,000 pounds gross vehicle weight. (7) 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. (8) On-site sales shall be limited to those clearly incidental to the services provided. (d) Interim home occupations. Home occupations that do not involve prohibited activities but exceed the permitted residential occupation criteria may be allowed with approval of a Interim Use Permit by the city council pursuant to the provisions of subdivision III of division 2 of this article. The intent of the Interim Use Permit is to evaluate, after a set amount of time, the impact a permitted home occupation is having on the neighborhood or the city. An approved Interim Use Permit shall be valid for a maximum of three years or until the property is sold, whichever comes first. To maintain a home occupation after the termination period, a new Interim Use Permit must be applied for. This application must be received at least 120 days prior to the termination date on the existing Interim Use Permit. (e) 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. (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. (g) Preexisting businesses. The city recognizes that existing home businesses may have been in operation, without approval, prior to DATE OF ADOPTION and therefore may allow their continuation, if they show proof, they have been a valid business in the State of Minnesota prior to DATE OF ADOPTION, do not involve prohibited activities, and receive an Interim Use Permit. (h) The property owner is responsible for the operations of the home occupation and any liability related thereto.