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HomeMy WebLinkAbout2012-05-16 PACKET 04.G.REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA MEETING ITEM # DATE 5/16/12 PREPARED BY Community Development John M. Burbank ORIGINATING DEPARTMENT STAFF AUTHOR COUNCIL ACTION REQUEST Consider approving an amendment to City Code Title 11- 9A -3(3), Home Occupations, to delete the home occupation permit and fee requirements and to amend the home occupation criteria performance and enforcement standards. Consider authorizing the publication of the ordinance amendment relative to home occupations by title and summary. STAFF RECOMMENDATION 1. Adopt the ordinance amendment regarding home occupations. 2. Adopt the resolution authorizing publication of the ordinance amendment by title and summary. BUDGET IMPLICATION $N /A $N /A N/A BUDGETED AMOUNT ACTUAL AMOUNTFUNDING SOURCE ADVISORY COMMISSION ACTION DATE ® PLANNING 4/23/12 ❑ PUBLIC SAFETY ❑ PUBLIC WORKS ❑ PARKS AND RECREATION ❑ HUMAN SERVICES /RIGHTS ❑ ECONOMIC DEV. AUTHORITY REVIEWED APPROVED DENIED ❑ ® ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ SUPPORTING DOCUMENTS ® MEMO /LETTER: Memo from John M. Burbank dated 5/10/12 ® RESOLUTION: Draft ® ORDINANCE: Draft ❑ ENGINEERING RECOMMENDATION: ❑ LEGAL RECOMMENDATION: ® OTHER: Excerpt from unapproved minutes from 4/23/12 Planning Commission meeting Excerpt from approved minutes from 2/27/12 Planning Commission meeting ADMINISTRATOR'S COMMENTS U l ao- r- ' X/ o Administrator R Date COUNCIL ACTION TAKEN: ❑ APPROVED ❑ DENIED ❑ OTHER CITY OF COTTAGE GROVE MINNESOTA TO: Mayor and Members of the City Council Ryan Schroeder, City Administrator FROM: John M. Burbank, Senior Planner DATE: May 10, 2012 RE: Home Occupation Zoning Text Amendment Introduction As a component of streamlining local government operations and efficiencies within Cottage Grove, the Home Occupation Permit (HOP) process has been identified as needing review and discussion. Planning Commission At their April 23, 2012, meeting, the Planning Commission reviewed the following information in relation to standards related to Home Occupations in all residential zoning districts. A public hearing was held. The proposed amendment items the Commission reviewed were centered on the following actions: a. Deletes the home occupation application requirement. b. Waives application fee requirement. c. Reviews the ordinance criteria performance standards related to home occupations. d. Reviews the ordinance criteria enforcement standards related to permitted home occupations and illegal home occupations. e. Prohibits the operation of home occupations in detached accessory structures. f. Directs the tasks of managing home occupation uses to the designated City Code Enforcement Officer. After considerable discussion, the Commission unanimously recommended approval (6 -to -0 vote) of the proposed amendment. Planning Consideration Ordinance Criteria The current ordinance related to home occupations as adopted in Section 119A -3(3) of the code is attached with the proposed amendments highlighted. Discussion Staff has reviewed the current HOP process and discussed the topic at length, concluding that the process does not serve as a benefit to the City as a whole or to individual residents and should be modified. It is proposed that the modification would eliminate the formal Home Occupation Permit process and simplify and strengthen ordinance criteria performance standards related to permitted and prohibited home occupation uses. The Zoning Ordinance allows for the operation of certain home occupations within all residential zoning districts. The established City permit process for HOP's involves an applicant paying a onetime fee of $60 and signing of an acknowledgement of permit requirements in accordance with City Code Title 11- 9A -3(3) and all applicable County, State, and Federal regulations. After the permit is processed by the Community Development Department, a certificate is sent to the applicant. The number of permits issued since 2000 is listed below. Honorable Mayor Bailey, City Council Members and Ryan Schroeder Home Occupations - Zoning text amendment. May 10, 2012 Page 2 of 2 Year # of Permits 2000 7 2001 13 2002 15 2003 13 2004 23 2005 9 2006 7 2007 7 2008 7 2009 6 2010 6 2011 2 2012 1 Total 116 Beyond tracking the number of permits that the City receives annually and occasionally tracking permit status at an address, no additional tasks are completed related to the issued HOP. Violations related to an issued HOP are rare. Typically properties that are brought to the City's attention for conducting some sort of "home occupation" are found to be operating without a permit and in such a manner that a HOP could never be issued based on a non- permitted use. Resolution to complaints related to illegal uses in residential areas is through cooperative or legally directed arrangements with violators. The violators are informed where appropriately zoned places exist in the community. Based on anecdotal evidence gathered through daily interaction with the community, it is evident that many of the businesses that have been registered with the City are no longer in operation due to a variety of reasons. Furthermore, as a part of their monthly agenda, the City's Economic Development Authority (EDA) reviews new business names in Cottage Grove that have been registered with the Minnesota Secretary of State. The EDA staff liaison reports that historically, the number of new business names listed per month ranges from seven to fifteen. This information is evidence that many home occupations are occurring in the community are not registered with the City. Summary The proposed ordinance meets the intent of how home occupation regulation in Cottage Grove was envisioned. Recommendation That the City Council accepts the Planning Commission's recommendation to approve the attached ordinance amending Title 11, Chapter 3, Section 3, Subsection A, Home Occupations. ORDINANCE NO. XXX 3 AN ORDINANCE FOR THE CITY OF COTTAGE GROVE, MINNESOTA, AMENDING 4 CITY CODE TITLE 11, ZONING REGULATIONS; CHAPTER 9, RESIDENTIAL DISTRICTS; 5 ARTICLE A, R -1 RURAL RESIDENTIAL DISTRICTS; CHAPTER 3, PERMITTED 6 ACCESSORY USES; SUB - SECTION 3, HOME OCCUPATIONS, 7 RELATING TO THE HOME OCCUPATION PERMIT PROCESS 10 The City Council of the City of Cottage Grove, Washington County, Minnesota, does 11 hereby ordain as follows: 12 13 SECTION 1. AMENDMENT 'The Code of the City of Cottage Grove, County of 14 Washington, State of Minnesota," shall be amended by amending Title 11- 9A -3(3), Home 15 Occupations, to read as follows: 16 17 3. Home Occupations. 18 A. Purpose: The purpose of this entry is to recognize that certain home occupations 19 conducted for painful employment involving the manufacture provision or sale_ of goods 20 and /or services are compatible with the character of res neighborhoods and to further 21 establish regulations relating to permitted home occupations In addition this section is 22 intended to provide a distinction between permitted and prohibited activities and uses 23 concerning home occupations. Permit GRIY these herne GGGUpatiGRS that are Gempat ble with 24 other permitted uses and vloth the residential Ghara -4 - 25 26 B Perm Req irem +° Home occupations Home Occupations are�ermitted as an acc esso 27 use to the principal use of properties within all zoning districts within the City subject to 28 meeting the performance standards established in this section of the code. 29 30 31 permit from the dirPGtQr Of PAMMURity development. QRe permit shall be requi f - or e-a-G-h 32 33 34 (2) RevGGation Of Permit; Appeals: VielatieR of the performaRGe standards shall be greunds for 35 Fevopatien of thtz permit. NGtiGe of intent tG revG!(e the peFrnit shall be sent by the direnter 0 36 GOmmuRity development to the permit holder. The 37 38 file aR appeal to the planRiRg GE)MMi'6 Failure to file an appeal witNn ten (10) days 39 waives any challenge to the FevoGatiGR� at the expiFation of the ten (10) days, the pefmit is 40 41 42 C. Performance Standards: No home occupation shall be permitted that does not conform to 43 all of the following standards: 44 45 (1) No more than one person, other than a member of the immediate family occupying the 46 dwelling, shall be employed on the premises at any one time. Ordinance No. XXX Page 2 of 4 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 (2) Identification signs shall conform with to Title 9, Chapter 8 of this code. (3) In no way shall the appearance of the structure be altered or the occupation within the residence be conducted in a manner which would cause the premises to differ from its residential character either by the use of colors, materials, construction, lighting or advertising signs or the emission of sounds, odors, noise, vibrations, heat, glare or electrical disturbances. (4) No home occupation shall be conducted in any accessory building, except as permitted by conditional use permit. an attaGhed or detached garage (6) No home occupation shall cause an increase in sewer or water usage so that the combined total use for dwelling and home occupation purposes exceeds the normal range for residences in the City. (7) There shall be no exterior storage or display of materials or equipment of any kind connected with the home occupation . (8) Any construction, a lteration or alteration of the principal structure electrical or mechanical equipment requires a building permit The use and or storage of chemicals or materials shall not change the fire rating of the principal dwelling structure o t fire district OR .n,hiG the str et ,r is located (9) The operation of the home occupation shall begin no earlier than siX- o'clock (C; 40) (7:001 A.M. and end no later than ten o'clock (10:00) P.M. (10) No more than 25 percent o the principal structure may be devoted to home occupation use. Ordinance No. XXX Page 3 of 4 designated with the authority to determine if a specific use is allowed as a permitted home occupation. E. Prohibited Home Occupations: The following uses shall not be permitted as home occupations: Animal hospitals o nef shnn . (1) Auto (2) repair, (34-C44GS or �tf)- fdle�uaries- Pa of trailers or heats yeh'nles (5) C°T_Pflvate_� Denting of trailers (7) io4 Q - Stables kennels, (10) 9F 9-Ge., as PFG.ided uRder /1141 t-,il s — ,to ferr. ., E. Prohibited Home Occupations: The following uses shall not be permitted as home occupations: Animal hospitals o nef shnn . (1) Auto (2) repair, (34-C44GS or �tf)- fdle�uaries- Pa of trailers or heats yeh'nles (5) C°T_Pflvate_� Denting of trailers (7) io4 Q Stables kennels, (10) 9F 9-Ge., as PFG.ided uRder /1141 t-,il s — ,to ferr. 1) Adult uses. 2) Animal hospitals, pet shops, pet day care. 3) Check Cashing. 4) Clinics or hospitals. 5) Contractor yard including the storage of equipment, the construction and service trades. 6) Equipment and supply rental. 7) High- intensity arc and oxyacetylene welding. 8) Limousine services. materials, and other accessories for Ordinance No. XXX Page 4 of 4 9) Machining. 10)Medical Marijuana dispensary. 11)Medical and Dental offices, clinics and laboratories. 12)Micro breweries open to the public. 13)Mortuaries and Crematoriums. 14)Pawn broker. 15)Precious metal dealer. 16)Private clubs. 17)Repair shops or service establishments, except the repair of computers, cameras, phones or similar small devises and equipment. 18) Restaurants or any catering or food preparation business. 19)Smoking Lounges. 20)Stables or kennels, except as provided under Section 11 -9A -4 of this Article, entry #5, "Commercial horse stables ". 21)Retail shopping stores. 22) Uses utilizing gun powder or explosives. 23)Vehicle sales requiring a Minnesota dealers or wholesale license. 24)Vehicie, trailer, or boat rental. 25)Vehicle, trailer or boat painting or detailing. 26)Vehicle, trailer or boat repair or service. 27)Other determined by the Zoning Administrator to not be a permitted home occupation. SECTION 2. EFFECTIVE DATE This ordinance shall be in full force and effect from and after its passage and publication according to law. Passed this day of 2012. Myron Bailey, Mayor Attest: Caron M. Stransky, City Clerk Published in the South Washington County Bulletin on RESOLUTION NO. 2012 -XXX RESOLUTION AUTHORIZING PUBLICATION OF ORDINANCE NO. XXX BY TITLE AND SUMMARY WHEREAS, the City Council of the City of Cottage Grove adopted Ordinance No. XXX, which amends City Code Title 11- 9A -3(3), Home Occupations, which deletes the home occupation permit and fee requirements and strengthens the home occupation ordinance criteria performance and enforcement standards; and WHEREAS, Minnesota Statutes, Section 412.191, subd. 4 allows publication by title and summary in the case of lengthy ordinances; and WHEREAS, the City Council believes that the following summary would clearly inform the public of the intent and effect of the ordinance. NOW THEREFORE BE IT RESOLVED, by the City Council of the City of Cottage Grove, County of Washington, State of Minnesota, that the City Clerk shall cause the following summary of Ordinance No. XXX to be published in the official newspaper in lieu of the entire ordinance: Public Notice The City Council of the City of Cottage Grove has adopted Ordinance No. XXX. The ordinance amends City Code Title 11- 9A -3(3), Home Occupations. This amendment deletes the home occupation permit and fee requirements and strengthens the home occupation ordinance criteria performance and enforcement standards. The entire text of Ordinance No. XXX is available for inspection at Cottage Grove City Hall during regular business hours and is posted at the Washington County Park Grove Library. BE IT FURTHER RESOLVED that a complete copy of the ordinance is kept in the City Clerk's office at City Hall for public inspection and a copy of the ordinance will be posted on the Public Notice Bulletin Board at City Hall, 7516 — 80th Street South. Passed this 16th day of May 2012. Myron Bailey, Mayor Attest: Caron M. Stransky, City Clerk EXCERPT FROM UNAPPROVED MINUTES OF THE PLANNING COMMISSION MEETING ON APRIL 23, 2012 6.3 Home Occupation Permits — Case TAI 2-014 The City of Cottage Grove has applied for a zoning text amendment to City Code Title 11- 9A -3(3), Home Occupations, to delete the home occupation permit an fee require- ments and to amend the home occupation criteria performance and enforcement standards. Burbank summarized the staff report. He clarified that on page 2, paragraph 5, line 66, re- lated to vehicle trips, the language says "two' and in parenthesis it says "four;" that should be clarified to read four trips per day, basically pick -up and drop -off two times a day. He recommended approval of the ordinance amendment. Rediske asked about the number of employees allowed to work in a home -based business, noting that the language states "no more than one person other than a member of the im- mediate family occupying the dwelling shall be employed on the premises." Burbank stated that staff would like that language to remain. Rediske asked why only one employee would be allowed. Burbank responded that there could be parking and traffic issues. He clarified that only one outside person besides family living in the house could be employed there. Rostad asked about home daycare centers. Burbank responded that the City has not re- quired home occupation permits for daycares because they are licensed by the County and the State. He stated that the ordinance could be clarified that home daycares could be ex- empt from the limitation on the number of employees; staff will check with the city attorney. It was suggested that home businesses regulated by outside agencies could be exempt from the ordinance regulations. Rostad opened the public hearing. No one spoke. Rostad closed the public hearing. Reese asked about the hours of operation in the ordinance. McCool stated that the busi- ness owner could work any time but clientele or deliveries coming to the home would be limited to those hours. It was suggested clarifying the language to read "outside traffic" in- stead of hours of operation. Roland explained that is the current code language and the only change is that it would read 7:00 a.m. instead of 6:00 a.m. Reese asked how this ordinance would be enforced if home occupation permits are not issued. McCool responded that staff would give written notice on the requirements and pro- vide the property owners an opportunity to correct the violations. If the property owner does not comply, a citation would be issued or the matter presented to the City's legal counsel for enforcement. Reese made a motion approve the zoning text amendment to delete the home occu- pation permit and fee requirements and to amend the performance and enforcement standards with a change to line 81 from 6:00 to 7 :00, changing "two" to "four" on line 66 related to vehicle trips, and clarifying requirements for daycare operations. Ventura seconded. Motion passed unanimously (6 -to -0 vote). EXCERPT FROM APPROVED MINUTES OF THE PLANNING COMMISSION MEETING ON FEBRUARY 27, 2012 7.2 Discussion on Home Occupation Permits (Ordinance Amendment) Burbank summarized the staff memorandum. He stated that staff is suggesting eliminating the home occupation permit process and fees but increasing the performance standards and up- dating the allowed uses. McCool stated that there have not been many issues with home occu- pations in residential neighborhoods. Reese stated that he would like to keep the permit process but not require payment. He believes this could help the City track the businesses in Cottage Grove in order to help them grow. He noted that the Economic Development Authority (EDA) receives a monthly list from the Secre- tary of State on new businesses in the City. Rostad noted that some of those businesses on the Secretary of State's list are listed at a resi- dential address but the work would be conducted off -site, such as a contractor. He does not be- lieve the City should force businesses to register, particularly if there is a fee. Burbank stated that in trade -type home occupations, language is added to those permits specifying certain re- strictions, such as storing equipment and materials on site. Ventura stated that there should be an education component about home occupations, whether or not permits would be required. Brittain asked if the City could identify new businesses through the Secretary of State. Burbank stated that could be one way to track them. Brittain asked what value the City receives from the permit process. Reese stated that an annual permit process would let the City know that the business is still operating; it is a one -time registration with the state. Danette Parr, Economic Development Director, stated that Reese is correct that a permit process would be helpful in tracking businesses in the City; but the benefit may be outweighed by the amount of work it would require. She noted that the proposed business accelerator could provide an opportunity to reach out and network with small businesses. She noted that smaller businesses want less intrusion. Ventura stated that when she looks at the number of permits from 2000 to 2012, she finds it in- teresting that the numbers for home occupation permits have exponentially gone down, and be- lieves the number of home -based businesses have actually increased because of the economy as more people working from their homes. Burbank stated one reason could be that people don't realize they need to have a permit. Reese stated that he does not think the City should step up enforcement without a permit process in place unless more information is provided to the residents regarding home occupa- tion standards. Burbank responded that there could be an educational component through the City's newsletter and website. in terms of the performance standards, he is not suggesting that the City actively cracks down on home occupations; it is more to enforce the ordinance on the illegal operations, such as auto repair. McCool stated that the City does not want to duplicate services, and if the state has a register of businesses, the City can use that listing to network if needed. Ventura noted that the Secretary of State's list does not include self - proprietors.