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CITY OF Council Agenda Item
MEETING DATE: July 19, 2012
AGENDA ITEM: Committee Reports, Planning Commission
SUBMITTED BY: Administration
BOARD /COMMISSION /COMMITTEE RECOMMENDATION: The Mayor's Ad Hoc housing
committee met twice to discuss the implications of the current rental restrictions in an R1 Zoning
District. After the second meeting they recommended that staff consider alternatives for modifying the
rental to allow rental in R1 under certain conditions.
During a department head meeting the staff discussed the recommendation of the Ad Hoc committee
and indicated that creating licenses for circumstances could led to discriminatory housing and their
option would be either change the ordinance and allow as permitted or leave the current language.
The Planning Commission discussed the recommendation of the Ad Hoc Committee and Staff and
recommended the Council establish a committee, including residents, to draft a proposed amendment
for consideration. The Planning Commission acknowledged that any change to the Ordinance would
require a public hearing.
PREVIOUS COUNCIL ACTION:
BACKGROUND INFORMATION: See attached information
BUDGET /FISCAL IMPACT:
ATTACHMENTS: Request for Council Action
Summary of Ad Hoc committee meetings
REQUESTED COUNCIL ACTION: Consider the recommendation of the Planning Commission.
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Summary of Ad Hoc Housing Committee
Meeting Summary — March 27, 2012
Present: Rick Schultz, Mike Deutz, Cory Ehlert, Roger Schleper, Ross Rieke
• Reviewed the rental study group material from 2000. At this time their rental issues resolved
around garbage, noise and compliance. Neighbors were complaining that rental homes were
easy to identify as the properties were unsightly. It was determined that properties with the
most compliance issues were absentee landlords. The result of the study group was the
amendment to the R1 Zoning Ordinance requiring all rentals in R1 to be owner occupied.
• Discussed the percentage of population that is impacted by the strict regulations and the impact
the housing slump has on property. Renting property is the only way from some to make their
house payments or stay out of foreclosure. For those trying to sell their home, rental would
allow a transition for the housing market to pickup.
• Looked at rental provisions of cities with Colleges /Universities
Northfield Rental requires a conditional use permit and the amount of
rental is limited — no more than 20% of the block can be
rental. There is a rental fee each year, but license is good for
2 years.
Winona Rental property is limited to 30% of the block and licenses
are issued for five years with an annual license fee.
St. Peter Rental property is limited to 30% of the block and licenses
are issued for two years with an annual license fee.
Mankato Rental licenses are issued for three years with an annual
license fee, did not find any limitations on number or
process
Duluth Single Family rental requires a one -time conversion fee of $
1,000 plus $ 25 per unit and $ 250 annual license. Licenses
are good for three years.
Morris Rental housing is managed by a rental housing commission,
unable to find any limitations.
Marshall Do not require rental license
St. Cloud License holders must attend a one -half day training
sponsored by the St. Cloud PD before a license is issued.
Annual license fee and issuance, inspections every two
years.
• The group decided to expand the members on the ad hoc committee to include some residential
property owners.
Meeting Summary — June 11, 2012
Present: Rick Schultz, Cory Ehlert, Roger Schleper, Ross Rieke, Nathan Grove
• Continued the discussion on rental provisions and discussed the recent situation of Bryan
Berscheid, who was denied an Interim Use Permit to rent his home while he is working in North
Dakota. He hopes to come back and did not want to sell his house for the short term so he
rented his house.
• Nathan Grove discussed his situation — he purchased his home seven years ago when he was
single. He has since married and has children and the home is too small. He has had his home
on the market for over year and is unable to sell. He would be able to rent to a family, but the
Ordinance does not allow.
• Group discussed the recent Ordinance Amendment that allows for military to secure an interim
use permit and if an amendment could be drafted to allow for a transitional or short term rental
license that could be used when a home doesn't sell or the property owner will be away from
their home short term.
• Discussed the importance of compliance with Ordinances and that if a provision is made for
non -owner occupied it should be tied to compliance with Ordinances and revoked if they do not
maintain the property.
• Discussion about between allowing rental as a permitted use for a trial period to see what
happens. All agreed they do not St. Joseph to become a rental city.
• Consensus to request staff consider what an amendment would look like if it were either
provisional and based on a specific criteria or if it were just allowed as a permitted use.
Amending Ordinance:
Pros: Gives some relief in current conditions, to those that cannot sell home.
Cons: Potential proliferation of the rental state in St. Joseph; very small group of consumers
that need relief; potential of more administrative and ordinance violations.
Staff Meeting - June 20, 2012
Members Present — Tom Jovanovich, Randy Sabart, Terry Thene, Pete Jansky, Lori Bartlett, Joann Foust
Staff discussed the recommendations of the Ad hoc housing committee and came to the conclusion that
it would not be feasible to determine criteria for when you could rent a home as it would become
subjective and could led to discriminatory practices. Given the choices the staff recommends either
staying with the existing ordinance or allowing rental as a permitted use in R1 zoning districts.