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Item 3.2 - ZOITEM 3.2 TPC The Planning Company MEMORANDUM 3601 Thurston Avenue Anoka, MN 55303 763.231.5840 TPC@PlanningCo.com TO: Otsego Planning Commission FROM: D. Daniel Licht, AICP DATE: 4 May 2021 RE: Otsego — Zoning Ordinance; Secondary dwelling units TPC FILE: 101.01 BACKGROUND City staff receives questions from time -to -time about the ability to construct a detached accessory building that would include a secondary dwelling unit. The Planning Commission discussed for allowance of secondary dwelling units as to possible amendments of the Zoning Ordinance their meeting on 19 April 2021 and provided City staff direction. City staff has drafted a proposed amendment to allow for secondary dwelling units as an accessory use within certain rural zoning district. A public hearing to consider the proposed amendment has been noticed for the Planning Commission meeting on 17 May 2021. Exhibits: ■ Draft ordinance ANALYSIS The Zoning Ordinance defines a dwelling unit as: DWELLING UNIT: A residential building or portion thereof intended for occupancy by one or more persons with facilities for living, sleeping, cooking and eating, but not including hotels, motels, nursing homes, seasonal cabins, boarding or rooming houses, resorts, tourist homes, or trailers. Single family dwellings are by definition limited to one dwelling unit. In recognition of the increased interest in generational living, the City amended the Zoning Ordinance to allow secondary dwelling units internal to a single family dwelling within a residential district within the Sewer Districts by administrative permit subject to performance standards limiting the functionality of the space as a separate dwelling unit. The number and area of detached accessory buildings allowed by the Zoning Ordinance is an amenity within the City. Allowance of a secondary dwelling unit with a detached accessory building would also be responsive to changes in society related to an aging population. The City often sees requests to build -out detached accessory buildings with kitchen and bathroom facilities. In order to comply with the provisions of the Zoning Ordinance, approval of detached accessory buildings have been allowed to include either a kitchen or full bathroom, but not both. The issue of secondary dwellings provides an opportunity to address use of the detached accessory buildings beyond multiple generational housing as well. The Planning Commission was generally supportive of allowing secondary dwelling units within a detached accessory structure provided that it be limited, at least initially to parcels within a rural setting and include performance standards to ensure compatibility and avoid unintended consequences. To this end, the proposed ordinance lists the following parameters: ■ Approval if the secondary dwelling unit would require an administrative approval by the Zoning Administrator. ■ Limited to being an allowed accessory use within the A-1 and A-2 Districts. ■ Allowed on parcels with a specified minimum lot area of five acres or more. ■ A full perimeter foundation is to be required and exterior finish materials are to be consistent with those used on the principal building ■ The area of the secondary dwelling may not exceed the gross floor area of the principal dwelling. ■ There must be a minimum of 240 square feet of space within the detached accessory building for off-street parking of a vehicle. ■ The detached accessory building must be within 100 feet of the principal building. ■ The principal building and the detached accessory building are to be connected to a single on-site septic system and well for utilities. ■ The property must maintain one street address. ■ A deed restriction is to be required to prohibit subdivision of the property with the detached accessory building having a secondary dwelling unit becoming a principal building. 2 RECOMMENDATION Adding secondary dwellings to rural residential uses in response to interest in multiple generational housing is an opportunity to increase the amenity value of the City's detached accessory building allowances. City staff has drafted an amendment to the Zoning Ordinance that would allow secondary dwelling units within detached accessory dwellings for rural residential properties within the A-1 and A-2 Districts by administrative permit for review by the Planning Commission. City staff recommends approval of the draft ordinance as presented. POSSIBLE ACTIONS A. Motion to recommend approval of a Zoning Ordinance amendment allowing secondary dwelling units within detached accessory dwellings for rural residential properties within the A-1 and A-2 Districts by administrative permit as presented. Motion to table. Adam Flaherty, City Administrator/Finance Director Audra Etzel, City Clerk David Kendall, City Attorney 3 ORDINANCE NO.: 2021 -XX CITY OF OTSEGO COUNTY OF WRIGHT, MINNESOTA AN ORDINANCE AMENDING THE CITY CODE TO PROVIDE FOR SECONDARY DWELLING UNITS WITHIN DETACHED ACCESSORY BUILDINGS IN CERTAIN ZONING DISTRICTS. THE CITY COUNCIL OF THE CITY OF OTSEGO DOES HEREBY ORDAIN: Section 1. Section 11-51-4 of the City Code (A-1 District — Accessory Use) is hereby amended to add the following provisions with subsequent sections renumbered accordingly: H. Secondary dwelling unit within a detached accessory building shall be allowed subject to approval of an administrative permit pursuant to chapter 8 of this title in compliance with the following performance standards: 1. The property shall have a minimum area of five (5) acres or greater. 2. The detached accessory building shall be setback not more than one hundred (100) feet from the principal building. 3. The detached accessory building shall comply with the area, number of structures, and setback provisions of Section 11-18-2 of this title. 4. The area of the secondary dwelling unit shall be less than the gross floor area of the principal building. 5. There shall be a minimum of two hundred forty (240) square feet of area within the detached accessory building for use as a garage for off-street parking. 6. The principal building and detached accessory building with a secondary dwelling unit shall be served by a single well for potable water and a single subsurface treatment system that complies with Title 9, Chapter 5 of the City Code. 7. The property shall have one (1) street address. 8. A deed restriction shall be recorded with the property to prohibit subdivision by which the detached accessory building with a secondary dwelling unit would be a principal building as defined by Section 11-2-2 of this Title. 1 Section 2. Section 11-55-4 of the City Code (A-2 District — Accessory Use) is hereby amended to add the following provisions with subsequent sections renumbered accordingly: H. Secondary dwelling unit within a detached accessory building shall be allowed subject to approval of an administrative permit pursuant to chapter 8 of this title in compliance with the following performance standards: 1. The property shall have a minimum area of five (5) acres or greater. 2. The detached accessory building shall be setback not more than one hundred (100) feet from the principal building. 3. The detached accessory building shall comply with the area, number of structures, and setback provisions of Section 11-18-2 of this title. 4. The area of the secondary dwelling unit shall be less than the gross floor area of the principal building. 5. There shall be a minimum of two hundred forty (240) square feet of area within the detached accessory building for use as a garage for off-street parking. 6. The principal building and detached accessory building with a secondary dwelling unit shall be served by a single well for potable water and a single subsurface treatment system that complies with Title 9, Chapter 5 of the City Code. 7. The property shall have one (1) street address. 8. A deed restriction shall be recorded with the property to prohibit subdivision by which the detached accessory building with a secondary dwelling unit would be a principal building as defined by Section 11-2-2 of this Title. Section 3. This Ordinance shall become effective immediately upon its passage and publication. MOTION BY: SECOND BY: ALL IN FAVOR: THOSE OPPOSED: ADOPTED by the City Council of the City of Otsego this day of , 2021. 2 CITY OF OTSEGO Jessica L. Stockamp, Mayor ATTEST: Audra Etzel, City Clerk D. DANIEL LICHT From: Cheryl Hathaway <hathawaych@msn.com> Sent: Monday, May 3, 2021 3:17 PM To: DDL@PlanningCo.com Subject: Zoning Ordinance amendment allowing secondary dwelling units Hello! My name is Cheryl Hathaway. My husband Mark and I have lived at 8987 Ohland Ave. NE in Otsego for 36 years. I am writing in reference to the Zoning Ordinance amendment allowing secondary dwelling units in Otsego that is being considered at the May 17th Public Hearing. We would like to comment that we are in favor of "Granny Pods" being allowed to be constructed on the properties that belong to owners in Otsego. However, we feel that there should be an age requirement of ages 55 and up as to the person living in the "Granny Pod". We think that "Granny Pods" are an excellent alternative for elderly people who may not be able to stay living in their own high maintenance home and to have a residence very close to loved ones. The cost of senior housing is astronomical and "Granny Pods" would be a less costly alternative. I am planning on attending the Hearing on the 17th ( my husband works second shift) to express my views if allowed. Thank for considering our opinion! Sincerely, Mark and Cheryl Hathaway