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HomeMy WebLinkAbout[05b] Interim Use Permit, Schmitz 5(b) Council Agenda Item MEETING DATE: December 19, 2013 AGENDA ITEM: Non Owner Occupied Rental SUBMITTED BY: Administration BOARD/COMMISSION/COMMITTEE RECOMMENDATION: The Planning Commission conducted a public hearing on Monday, December 2, 2013 to consider the issuance of an Interim Use Permit to allow for non-owner occupied rental unit in an R1 Zoning District. The property owner, Joseph and Katie Schmitz, have had their home on the market for over 90 days and have been unable to sell the house successfully. PREVIOUS COUNCIL ACTION: The Council and Planning Commission considered and approved an amendment to the R1 Zoning District to allow residents who have resided in their home for at least two years, have had their home on the market for at least 90 days and the property is their principal residence to apply for an interim use permit to rent their property for no longer than two years. BACKGROUND INFORMATION: See Planning Commission Information BUDGET/FISCAL IMPACT: ATTACHMENTS: Request for Council Action Findings of Fact and Decision Extract of PC Minutes Hearing Notice Email – concern Application Planning Commission Findings REQUESTED COUNCIL ACTION: Consider the recommendation of the Planning Commission THIS PAGE INTENTIONALLY LEFT BLANK City of St. Joseph IN RE: FINDINGS OF FACT Application of Joseph & Kate Schmitz AND DECISION Interim Use Permit at 803 Morningside Loop Owner Occupied Rental – Maximum Density as defined by St. Joseph Code of Ordinances 52.27.5 FINDINGS OF FACT On December 2, 2013 the St. Joseph Planning Commission conducted a public hearing to consider the application of Joseph & Kate Schmitz for an Interim Use Permit to allow a non owner occupied rental unit at 803 Morningside Loop. The matter was duly published and notice was provided to property owners within 350 feet of the above referenced property. The Planning Commission hereby established the following facts as it relates to the request of Joseph & Kate Schmitz for an Interim Use Permit to secure a rental license. 1.In response to citizen concern in 2000, the City reviewed the Zoning Ordinance as it relates to rental property and zoning classifications. The purpose of the review was to find a manner in which to effectively blend housing types within the R1 Zoning District. As a result of the review the City adopted an amendment to Ordinance 52.27 allowing rental units in the R1 Zoning District only if the property owner resides at the property. The Ordinance was adopted by the City Council on September 21, 2000. 2.In 2007 the City again reviewed the rental provisions in the Single Family residential zoning district. While the Ordinance was amended in 2000, the blending of rental and owner occupied property appeared to need re-defining. On September 20, 2007 the City Council imposed a moratorium on rental housing for 90 days to give the Planning Commission an opportunity to review the owner occupied provision in the R1 Single Family Zoning District. 3.On February 21, 2008 the City Council accepted the recommendation of the Planning Commission amending the provisions in section 52.27 of the St. Joseph Code of Ordinances. The amendment restricted the number of owners for the purpose of owner occupied rental and included language that all owners must reside at the property as their principal residence. 4.St. Joseph Ordinance 52.04.31.a defines a family as any number of persons living together in a room or rooms comprised of a single housekeeping unit and related by blood, marriage, adoption, or any unrelated person who resides therein as though a member of the family. Any group of three persons not so related but inhabiting a single house shall, for the purposes of this Ordinance, be considered to constitute one family. 5.In 2012 the City had been approached by some residents and realtors indicating that the strict rental restrictions in St. Joseph are causing a hardship for property owners who cannot sell their home, but could rent their home if the Ordinance would permit. 6.Responding to the request, the City Council authorized the formation of a committee to study the rental restrictions in St. Joseph and report their findings back to the City Council and Planning Commission. 7.The City Council and Planning Commission reviewed the recommendations of the rental housing committee in which they requested to allow an interim use permit for a non owner occupied rental license in the R1 Zoning District if a property owner has resided in the City for at least two years and they have been actively attempting to sell their home without success. Based on this recommendation, a public hearing was authorized to consider amending the Ordinance based on the recommendations of the housing committee. 8.On February 4, 2013 the City Council conducted a public hearing to consider the aforementioned amendment. The Planning Commission recommended approval of the proposed amendment which was subsequently approved by the City Council on February 21, 2013 and became effective March 1, 2013. 9.On November 13, 2013 Joseph & Kate Schmitz submitted an application for Interim Use to allow a non-owner occupied rental unit at 803 Morningside Loop. 10.Upon review of the application it was determined complete and met the following criteria: a) the property owners have resided at 803 Morningside Loop for at least two years; b) the property is homesteaded and used as the primary residence for the applicant; c) the applicant provided proof that they have been attempting to sell the residence without success. DECISION AND CONCLUSION 1.St. Joseph Code of Ordinances 52.27 Subd. 5 (b) provide property owners in a R1 Single Family Zoning district to seek an Interim Use Permit to seek a rental license for a non-owner occupied rental license if the property owner (s) are relocating and are unable to sell their homes. The Interim Use Permit shall only be issued for one year and can be renewed for only one additional year. At the end of the second year, the property could not continue to function as rental property. 2.Granting of an Interim Use Permit is a privilege that is granted by the City and reviewed annually for Ordinance Compliance and are therefore issued with contingencies. The Interim Use is being recommended with the following conditions: a.The property owner will complete the license process with 30 days of Council approval of the Interim Use Permit at which time the property shall be in full compliance with the St. Joseph Code of Ordinances, including the maximum density. b.The property owner will manage the property in compliance with the St. Joseph Code of Ordinances. c.The property owner may request renewal of the rental license for one additional year, provided the property is maintained and managed in accordance with the St. Joseph Code of Ordinances. d.The Interim Use Permit shall expire upon transfer of property or December 31, 2015; whichever comes first. In order to operate as a rental unit for the calendar year 2015, the rental license must be renewed prior to August 15, 2015. Based on the foregoing Finding of Fact and Decision and Conclusion of the St. Joseph Planning Commission, the request for Interim Use has been issued pursuant to the terms and conditions aforementioned. Adopted this day of , 2014 CITY OF ST. JOSEPH By Rick Schultz, Mayor By Judy Weyrens, Administrator THIS PAGE INTENTIONALLY LEFT BLANK Extract of December 2, 2103 Planning Commission Meeting Interim Use Permit - Schmitz Public Hearing, Interim Use: Chair Rieke opened the public hearing to which Weyrens stated the purpose of the public hearing is to consider an interim use permit to allow for a non-owner occupied rental unit at 803 Morningside Loop. St. Joseph Code of Ordinances 52.27 Subd.5(b) allows for an interim use permit as follows: residential rental provided the property owner is relocating and the dwelling has been actively for sale and on the market for at least three months. The owners may not exceed two in number and a copy of a recorded deed or recorded contract for deed must be provided. The interim use permit request was submitted by Joseph and Katie Schmitz. Weyrens added that this is regarding the new provision in the Ordinance where you could apply for an interim use permit if you are trying to sell your home. It is a maximum of two years and can be renewed once. Weyrens added that the City did receive an email from an anonymous resident expressing their concerns with allowing the interim use permit. Joseph and Katie Schmitz spoke on their own behalf and stated that they have lived at 803 Morningside Loop for the past years. Joseph Schmitz stated that they have been trying to sell their home and at one point it was sold, however, the sale fell through. He added that there has been a lot of interest and that all the inspections and appraisals have gone through okay. While the sale was taking place, they had purchased land, moved out of the home and had planned on building in the Spring 2014. They found out 10 days before closing that the buyers’ finances had fallen through. They are now making payments on the land they had purchased, on the home, and at the place they are currently renting. Schmitz added that it was never their intent to rent out the property. They would like to work through a rental company to list their home and do all the backround checks for them to ensure there is a good tenant living there. Tom Lowell, 101 Iverson St W: Lowell stated that he has lived at the residence behind the property and has for over 30 years. Lowell and his wife oppose the rental adding that at the time of the development, he was told that all of the rentals would be south of Iverson Street. All the others homes would be single- family dwellings. Lowell stated that he has noticed a lot of police presence south of Iverson where all the rentals are located. He did not have time to check the number of calls made regarding that area, but he knows that the crime rate is high where those rentals are and does not want to see another rental in that area. As no one else was wishing to speak, Rieke close the hearing for discussion. Rieke asked whether the applicants have met all the requirements. Weyrens stated that they have met the qualifications. Rieke asked how the process works. Weyrens responded that when the Ordinance Amendment was passed due to struggles people were experiencing in selling their homes and the Council looked at a way to provide some relief to those residents. As a compromise the Council allowed an interim use permit if certain conditions were met:  The home has to be on the market for more than three months  The residents must have lived there for at least two years  It’s the applicants’ primary residence If all the requirements are met than the residents can apply for a one year interim use permit which can be renewed only once. Any complaints made will be discussed at time of renewal. Cobb added that all the requirements have been met for this interim use permit and that everything seems to be in order. He asked how long the property has been vacant. Schmitz responded since th October 26 and that they are looking at doing an 18 month lease which would get them to the spring of 2015. Schmitz asked what the process would be for renewal. Weyrens responded that administratively a renewal notice will be sent out. If there are any infractions, then the applicants will need to come before the Planning Commission. If there are none, then the renewal process will go on as normal. Schultz asked whether the home needs to be put on the market which it is being rented. Weyrens stated that the home does not have to be on the market. At the time the ordinance was amended the Council felt that having the home on the market hindered the opportunity for the owners to get tenants. Dullinger moved to recommend the City Council accept the Findings of Fact issuing the Interim Use Permit to Joseph and Katie Schmitz at 803 Morningside Loop. The motion was seconded by Cobb and passed unanimously. Discussion: Cobb added that the Planning Commission’s findings would be put before the City Council for final approval on December 18th. THIS PAGE INTENTIONALLY LEFT BLANK Public Hearing City of St. Joseph The St. Joseph Planning Commission shall conduct a public hearing on Monday, Administrator December 2, 2013 at 7:00 PM. The purpose of the hearing is to consider an Interim Judy Weyrens use permit to allow a non-owner occupied rental at 803 Morningside Loop. The Mayor property is legally described as Lot 17, Block 1, Morningside Acres Second Addition. Rick Schultz St. JosephCode of Ordinances 52.27 Subd.5(b) allows for an Interim Use Permit as Councilors follows: Residential Rental provided the property owner is relocating and the Steve Frank dwelling has been actively for sale andon the market for at least three months. For Bob Loso purposes of establishing if the property is owner occupied, the owner must be a Renee Symanietz natural person, and all owner(s) occupy the property as their principal residence and Dale Wick have for at least two years. The owners may not exceed two in number. For the purpose of determining ownership, the owner(s) must provide a copy of a recorded deed or recorded contract for deed. A purchase agreement will not be accepted as evidence of ownership. Katie Schmitz, 803 Morningside Loop, St. Joseph, MN 56374 has submitted the request for Interim Use. Judy Weyrens Administrator Publish: November 22, 2013. ___________________________________________________________________ ·· 25 College Avenue North PO Box 668 Saint Joseph, Minnesota 56374 Phone 320.363.7201 Fax 320.363.0342 Judy Weyrens Subject:FW: December 2nd Council Meeting Subject: December 2nd Council Meeting Dear Mayor Schultz I am e-mailing you regarding the upcoming public hearing on December 2nd whether or not to grant Katie Schmitz and her husband permission to rent their house. From my own past rental experiences my concern is that Katie and her husband may find a renter who decreases the value of the home and therefore the value of mine as realtors compare nearby home prices. I understand they have had some bad luck with selling their home and I feel very sorry for them that this is the second time a sale has fallen through. I think it would be in the best interest of Katie to continue in the selling process. Even though rental income could be beneficial, rental repair and replacement costs may turn out to be just as much or even more. I urge the council to deny a rental permit. Thank you for your time. 1 City of St. Joseph IN RE: FINDINGS OF FACT Application of Joseph & Kate Schmitz AND DECISION Interim Use Permit at 803 Morningside Loop Owner Occupied Rental – Maximum Density as defined by St. Joseph Code of Ordinances 52.27.5 FINDINGS OF FACT On December 2, 2013 the St. Joseph Planning Commission conducted a public hearing to consider the application of Joseph & Kate Schmitz for an Interim Use Permit to allow a non owner occupied rental unit at 803 Morningside Loop. The matter was duly published and notice was provided to property owners within 350 feet of the above referenced property. The Planning Commission hereby finds the following facts as it relates to the request of Joseph & Kate Schmitz for an Interim Use Permit to secure a rental license. 1.In response to citizen concern in 2000, the City reviewed the Zoning Ordinance as it relates to rental property and zoning classifications. The purpose of the review was to find a manner in which to effectively blend housing types within the R1 Zoning District. As a result of the review the City adopted an amendment to Ordinance 52.27 allowing rental units in the R1 Zoning District only if the property owner resides at the property. The Ordinance was adopted by the City Council on September 21, 2000. 2.In 2007 the City again reviewed the rental provisions in the Single Family residential zoning district. While the Ordinance was amended in 2000, the blending of rental and owner occupied property appeared to need re-defining. On September 20, 2007 the City Council imposed a moratorium on rental housing for 90 days to give the Planning Commission an opportunity to review the owner occupied provision in the R1 Single Family Zoning District. 3.On February 21, 2008 the City Council accepted the recommendation of the Planning Commission amending the provisions in section 52.27 of the St. Joseph Code of Ordinances. The amendment restricted the number of owners for the purpose of owner occupied rental and included language that all owners must reside at the property as their principal residence. 4.St. Joseph Ordinance 52.04.31.a defines a family as any number of persons living together in a room or rooms comprised of a single housekeeping unit and related by blood, marriage, adoption, or any unrelated person who resides therein as though a member of the family. Any group of three persons not so related but inhabiting a single house shall, for the purposes of this Ordinance, be considered to constitute one family. 5.In 2012 the City had been approached by some residents and realtors indicating that the strict rental restrictions in St. Joseph are causing a hardship for property owners who cannot sell their home, but could rent their home if the Ordinance would permit. 6.Responding to the request, the City Council authorized the formation of a committee to study the rental restrictions in St. Joseph and report their findings back to the City Council and Planning Commission. 7.The City Council and Planning Commission reviewed the recommendations of the rental housing committee in which they requested to allow an interim use permit for a non owner occupied rental license in the R1 Zoning District if a property owner has resided in the City for at least two years and they have been actively attempting to sell their home without success. Based on this recommendation, a public hearing was authorized to consider amending the Ordinance based on the recommendations of the housing committee. 8.On February 4, 2013 the City Council conducted a public hearing to consider the aforementioned amendment. The Planning Commission recommended approval of the proposed amendment which was subsequently approved by the City Council on February 21, 2013 and became effective March 1, 2013. 9.On November 13, 2013 Joseph & Kate Schmitz submitted an application for Interim Use to allow a non-owner occupied rental unit at 803 Morningside Loop. 10.Upon review of the application it was determined complete and met the following criteria: a) the property owners have resided at 803 Morningside Loop for at least two years; b) the property is homesteaded and used as the primary residence for the applicant; c) the applicant provided proof that they have been attempting to sell the residence without success. DECISION AND CONCLUSION Based on the Finding of Fact, the St. Joseph Planning Commission recommends approval of the Interim Use Permit with the following conditions: 1.St. Joseph Code of Ordinances 52.27 Subd. 5 (b) provide property owners in a R1 Single Family Zoning district to seek an Interim Use Permit to seek a rental license for a non-owner occupied rental license if the property owner (s) are relocating and are unable to sell their homes. The Interim Use Permit shall only be issued for one year and can be renewed for only one additional year. At the end of the second year, the property could not continue to function as rental property. 2.Granting of an Interim Use Permit is a privilege that is granted by the City and reviewed annually for Ordinance Compliance and are therefore issued with contingencies. The Interim Use is being recommended with the following conditions: a.The property owner will complete the license process with 30 days of Council approval of the Interim Use Permit at which time the property shall be in full compliance with the St. Joseph Code of Ordinances, including the maximum density. b.The property owner will manage the property in compliance with the St. Joseph Code of Ordinances. c.The property owner may request renewal of the rental license for one additional year, provided the property is maintained and managed in accordance with the St. Joseph Code of Ordinances. d.The Interim Use Permit shall expire upon transfer of property or December 31, 2015; whichever comes first. In order to operate as a rental unit for the calendar year 2015, the rental license must be renewed prior to August 15, 2015. Based on the foregoing Finding of Fact and Decision and Conclusion of the St. Joseph Planning Commission, the request for Interim Use is forwarded to the City Council as a recommendation for approval. Passed by Resolution of the St. Joseph Planning Commission on December 2, 2013. CITY OF ST. JOSEPH By Ross Rieke, Chair By Judy Weyrens, Administrator This page intentionally left blank