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Home My WebLink About[06] Public Hearing, Rental Housing 6 Planning Commission Agenda Item MEETING DATE: February 4, 2013 AGENDA ITEM: Public Hearing, Ordinance Amendment R1 Zoning District, Rental Provisions SUBMITTED BY: Administration PREVIOUS PLANNING COMMISSION ACTION: Both the Planning Commission and City Council have been discussing rental regulations in the R1 Zoning District. The current Ordinance only allows rental in the R1 Zoning District if the property is owner occupied and the property owner is renting a room. In December the Planning Commission considered the recommendation of a housing committee to consider a possible amendment to the R1 Zoning District allowing for a non owner occupied rental under certain criteria. The Commission recommended the Council authorize the Planning Commission to conduct a public hearing, which they did in December. BACKGROUND INFORMATION: The changing economy and housing market has led the City to review the restrictions in the R1 Zoning district as the City has had inquiries from property owners who have been unable to sell their home and have relocated to another area. They have indicated that they could have had the opportunity to rent their home but the Ordinance does not allow such. Reacting to the request of property owners, the Council authorized a committee of five to review the current regulations and forward a recommendation to the City Council and Planning Commission. This information was presented in December to both the Planning Commission and City Council. For your convenience and for that of the new members, I have attached the same information again. As a reminder any change to the Zoning Ordinance requires a public hearing before the Planning Commission. Since the Planning Commission is recommending to the City Council, after closing the public hearing and discussion the Planning Commission can either make a recommendation to the City Council approving, denying or tabling for additional information. ATTACHMENTS: Request for Planning Commission Action Hearing Notice Proposed Ordinance Amendment Meeting Material From December 3 Planning Commission Meeting Extract of City Council Minutes, December 20 REQUESTED PLANNING COMMISSION ACTION: Conduct the public hearing and either make a recommendation to the City Council approving/denying or table for additional information. This page intentionally left blank CITY OF ST. J OSEPH www.cityofstioseph.com City of St.Joseph Public Hearing Amendment to Ordinance 52.27 The St.Joseph Planning Commission will be conducting a public hearing on Monday, February Administrator 4, 2013 at 7:00 PM to consider amending Ordinance 52.27 Subd. 5 (b)adding a provision to Judy Weyrens allow a non-owner occupied rental license if a property owner has tried to sell their home without success. The new provision would allow for a one-time two year interim use permit affording the property owner the opportunity to make application for a rental license and Mayor interim use permit. If granted the interim use permit and rental applications must be Rick Schultz renewed for the second year, expiring at the end the second year. Councilors Full text of the above Ordinance Amendments can be viewed at the City Offices,25 College Steve Frank Avenue North or on the City website: www.cityofstioseph.com. All persons wishing to testify will be heard with oral testimony limited to five minutes. Written testimony can be submitted Bob Loso to the City of St.Joseph,Attn: Judy Weyrens, PO Box 668,St.Joseph MN 56374. Renee Symanietz Dale Wick Judy Weyrens Administrator Publish: January 25,2013 z5 College Avenue North • PO Box 668 • Saint Joseph, Minnesota 56374 Phone 320.363.7zoi Fax 32.0.363.0342 Subd. 5: Interim Uses. The following are Interim Uses allowed by permit based upon the procedures and criteria set forth in Section 52.07.04 of this Code. a) Residential rental provided the unit is owner-occupied and provided the room(s) rented does not contain separate kitchen facilities and is not intended for use as an independent residence. For purposes of establishing if the property is owner occupied, the owner must be a natural person, and all owner occupy the property as their principal residence. The owners may not exceed two in number. For purpose of determining ownership, the owner/owners must provide a copy of a recorded deed or recorded contract for deed. A purchase agreement will not be accepted as evidence of ownership. In addition, 1. The property must satisfy the parking requirements contained in this Ordinance. 2. The rental unit(s) must: A. Have a ceiling height of at least seven (7) feet; B. Contain adequate ventilation and fire escapes as determined by the Building Official; and, C. Meet all applicable rental codes as outlined in St. Joseph Ordinance 55 and Ordinance 55.06, Subd. 1. Section 52.27, Subd. 5 amended 4/08 b) Residential Rental provided the property owner is relocating and the dwelling has been actively for sale on the market for at least three months. For purposes of establishing if the property is owner occupied, the owner must be a natural person, and all owner (s) occupy the property as their principal residence and have for at least one year. The owners may not exceed two in number. For purpose of determining ownership, the owner/owners must provide a copy of a recorded deed or recorded contract for deed. A purchase agreement will not be accepted as evidence of ownership. For the purpose of determining applicability, the property owner must provide a copy of the current listing agreement, with a licensed realtor, showing the property, is currently being marketed. In addition, 1. The property must satisfy the parking requirements contained in this Ordinance. 2. The rental unit(s) must: A. Have a ceiling height of at least seven (7) feet; B. Contain adequate ventilation and fire escapes as determined by the Building Official; and, C. Meet all applicable rental codes as outlined in St. Joseph Ordinance 55 and Ordinance 55.06, Subd. 1. December 20, 2012 13 Page of Pursuant to due call and notice thereof, the City Council for the City of St. Joseph met in regular session on Thursday, December 20, 2013 in the St. Joseph City Hall, opening the meeting with the Pledge of Allegiance. Members Present: Mayor Rick Schultz, Councilors Dale Wick, Renee Symanietz, Steve Frank, Bob Loso and City Administrator Judy Weyrens City Representatives Present: City Finance Director Lori Bartlett, Police Chief Pete Jansky and Public Works Director Terry Thene Others Present: PUBLIC COMMENTS – No one present wished to speak. Loso made a motion to approve the agenda removing consent agenda item (a) Approve of Agenda: minutes; the motion was seconded by Frank and passed unanimously by those present. Wick made a motion to approve the consent agenda as follows; seconded by Consent Agenda: Symanietz and passed unanimously. a. Removed b. Bills Payable – Approved check numbers 045948-046038, payroll EFT # 000737-000746 and accounts payable EFT #001595. c. Treasurer Report –Accepted the November Treasurer’s Report. d. Donations –Accepted the donations for the purposes stated. e. Liquor Licenses – Issued2013 Cigarette, Amusement and Malt Liquor Licenses. f. Liquor License Transfer – Approved the liquor license transfer from St. Joseph Amoco Liquor to Pequot Liquor LLC. g. Liability Insurance – Authorized the Administrator to execute the LMCIT Liability Coverage Waiver Form, verifying that the City does not waive the monetary limits on tort liability Planning Commissions: Weyrens reported that the Planning Commission received the recommendation of the R1 Rental Housing Committee regarding rental provisions in residential zoning districts. The Committee has recommended the R1 Zoning Ordinance be amended to allow property owners who have been trying to sell their home without success the opportunity to rent the home for a period of two years. The recommendation includes issuing an Interim Use Permit if a property owner qualifies which includes a public hearing and notification of the adjoining property. The Committee was split on whether or not the property owner could require an extension of the Interim Use Permit beyond two years. The Committee recommended that if the Council amends the Ordinance as recommended by the Committee, the provision should be reviewed after 18 months to determine its effectiveness and market conditions. Frank questioned the recommendation of the City Attorney, to which Weyrens stated that he recommended utilizing an Interim Use Permit with a sunset provision. He did not recommend allowing permits to be renewed as their might not be an incentive for the property owner to sell their home or they may opt to list the home at an unrealistic selling price, claiming the property is not selling. The Council discussed the provision whereby the property owner is required to validate that they have actively marketed and attempted to sell their home for three months. Weyrens stated the Committee suggested that a brokerage agreement would have to be provided to illustrate the hardship. Schultz stated that the Planning Commission has recommended the City Council move the amendment to the public hearing stage to solicit public input. Frank questioned procedurally what happens after the Planning Commission conducts the public hearing. Weyrens stated that the Planning Commission will forward a recommendation to the City Council who will in turn accept, reject or modify the recommendation. The Planning Commission is charged by Statute to conduct the public hearing so when the matter comes to the Council it is not a hearing; rather Council