Agenda - Council Work Session - 05/09/2023

Home

CC Work Session Meeting Date: 05/09/2023 Information Title: Discuss Home Occupation Permits Purpose/Background: Current Code 2.5. The City's Community Development Department has had recent difficulties processing the current iteration of the home occupation ordinance. Home occupations are intended for the "peace, quiet, and domestic tranquility in all residential neighborhoods" and shall be "temporary in nature." The City Council may recall some recent cases that have sparked particular public interest that are allowed with a Level -II permit such as contracting, manufacturing, or similar uses that deter from the intention of a residential setting. The list below are some current code provisions that may prove problematic for future applications: • Incompatible uses include operations relating to internal combustion engines, ammunition manufacturing, or motor vehicle sales. • There are several of other uses that could be detrimental to a residential setting. By specifically listing incompatible uses, it limits interpretations to only these types of businesses as incompatible when many other businesses could be problematic. • Vehicle trips, type, and number • According to the City's Zoning Code Enforcement Officer, there is not an appropriate way to monitor vehicle trips unless a City official would be observing the property at all times. • The current code also allows an undefined amount of vehicle types and number if they have a Level II permit. An applicant could have multiple commercial vehicles with a larger weight class that could damage City roads that do not have the appropriate bituminous weight surfacing. • Accessory Buildings and Garage Space • Nearly all surrounding cities do not allow home occupations in accessory buildings, and require at least two stalls (400 square feet) of garage space devoted to personal use instead of business use. • Accessory buildings are a permanent improvement, and do not qualify as "temporary in nature" when used for business purposes. • Certificates of Occupancy (COs) are required for commercial buildings that are intended to be occupied by people. The City's Building Official cannot issue a CO until all required Building Code requirements are met and cannot issue one at all on an accessory structure. Some uses have also come forward that would not be allowed administratively based on the City's current Home Occupation Permit (HOP) ordinance, but have a less intense use, such as a beautician or a dog treat sales business: • Any customers onsite, unless an arts occupation • Staff have received inquiries from residents requesting home -based businesses for beauty shops or dog treat sales, that have opted not to pursue their business dreams because of the Level II requirements. • Level II permits allowed in R- I District only • There are other residential districts in the City that could benefit from having the opportunity to obtain an HOP such as R-2, R-3, the COR, PUD, and MU-PUD. County Assessor's Office and Homeowner's Insurance The City has had discussions with Anoka County's Assessor's Office regarding home occupations and the potential for altering class taxifications based on home -based businesses. The County has said that if they were to discover any properties with home -based businesses, those properties could be taxed at a commercial property rate for the area dedicated to a home occupation. This would lead to tax hikes for our property owners that have obtained HOPs to avoid paying fees for commercial spaces, thus making their investment void and altering the