Agenda - Council Work Session - 05/09/2023

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property's tax class for future property owners. The same concept applies to homeowner's insurance. Property owner's insurance rates may increase if their property could qualify as commercial property. Commercial Accessory Buildinl4s and Property Owner Investments A few applications have come in for accessory structures requiring building permits that are dedicated to home -based businesses. Some of these buildings have proposed reception areas, conference rooms, and individual offices for employees. While their proposals may fall within the Level I HOP requirements (no permit required), the type of structures and occupancies they're proposing have caused difficulties for our Building Division to process these permits. These would qualify as commercial buildings which would require various improvements, such as a fire suppression system, accessibility (bathrooms, ramps, parking stalls, etc.), exit signs, etc. The building will have to be equivalent to a commercial setting to provide proper safety for the public. These requirements can bear a heavy cost on property owners that wish to retain a home -based business, and might be more suitable in one of the City's already established commercial buildings. Surrounding Cities' Requirements Based on research conducted by staff, surrounding cities have more restrictive standards for home occupations to protect adjacent homeowners in their residential districts. Many cities propose a Level II permit on an interim status with an Interim Use Permit to only allow a home occupation as an incubator, with the intention of moving into a commercially -zoned space within a few years. There is also an option for an administrative permit for less intense uses that are more typical of a residential setting, such as home offices, or other uses similar in character with a low impact on surrounding properties. A list of surrounding cities' home occupation requirements is attached to this case, as well as a one -page summary table for the City Council's review. Potential Code Revisions • Eliminate allowing accessory buildings for HOPs; • Limit the size of the HOP to a certain percentage or square footage of the home; • Setbacks for all business -related operations (vehicles, the principal structure, etc.) from neighboring properties; • Address outdoor storage; • Specify a list of allowed and incompatible business uses; • Specify the types and number of vehicles allowed related to the home occupation; • Record the HOP with Anoka County; and • Require an IUP for Level II HOPs Timeframe: 30 minutes Funding Source: This case is part of staffs regular duties. Responsible Party(ies): • Brian McCann, City Planner • Craig Swalchick, Zoning Code Enforcement Officer • Todd Larson, Planning Manager • Jesse Szykulski, Building Official • Stephanie Hanson, Community Development Director Outcome: Provide direction on how to process Home Occupation Permits, and if staff should pursue an amendment to the current home occupation ordinance.