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Item 4.3 ZOF Otsezo MINNESOTA V DEPARTMENT INFORMATION Request for City Council Action ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE: Planning City Planner Licht 24 May 2021 PRESENTER(s) REVIEWED BY: ITEM #: City Planner Licht City Administrator/Finance Director Flaherty 4.3 STRATEGIC VISION MEETS: I THE CITY OF OTSEGO: within detached accessory buildings within the A-1 District and A-2 District. Is a strong organization that is committed to leading the community through innovative communication. IS PUBLIC HEARING REQUIRED? Has proactively expanded infrastructure to responsibly provide core services. Yes, held by Planning Commission on 17 May 2021. Is committed to delivery of quality emergency service responsive to community needs and expectations in a cost-effective manner. X Is a social community with diverse housing, service options, and employment opportunities. secondary dwelling units as to possible amendments of the Zoning Ordinance their meeting on 19 April Is a distinctive, connected community known for its beauty and natural surroundings. AGENDA ITEM DETAILS RECOMMENDATION: City staff recommends approval of a Zoning Ordinance amendment allowing secondary dwelling units within detached accessory buildings within the A-1 District and A-2 District. ARE YOU SEEKING APPROVAL OF A CONTRACT? IS PUBLIC HEARING REQUIRED? No Yes, held by Planning Commission on 17 May 2021. BACKGROUND/J USTI F I CATI O N : 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 districts. 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 of 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 or 1,200 square feet, whichever is less. ■ There must be a minimum of 240 square feet of space designated for an enclosed garage 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. A public hearing to consider the proposed amendment was held by the Planning Commission at their meeting on 17 May 2021. Ms. Cheryl Hathaway spoke in favor of the proposed ordinance and said the City should consider allowing "granny -pods" in the future. The Planning Commission discussed the need to limit the maximum area of a secondary dwelling unit in addition to a requirement that the area of secondary dwelling unit be less than the area of the primary house. Those in favor of a specific limit had concerns about rental occupancy of the secondary dwelling unit. After discussion, the majority of the Planning Commission favored a limit of 1,200 square feet. The Planning Commission also discussed that area for off-street parking could be designated either in the primary house or another accessory building. The Public Hearing was closed and the Planning Commission voted 5-2 to recommend approval of the proposed Zoning Ordinance amendments with changes as discussed regarding maximum floor area and area for an enclosed garage stall. Commissioner Nichols stated he voted no as he does not support the concept of secondary dwelling units within detached accessory buildings. Commissioner Stritesky voted no as he opposed the maximum floor area limit recommended by a majority of the Planning Commission. SUPPORTING DOCUMENTS ATTACHED: ■ Example building plans ■ Ordinance 2021-12 ■ Summary of Ordinance 2021-12 PCIGSIRI F MOTION PLEASE WORD MOTION AS YOU WOULD LIKE ITTO APPEAR IN THE MINUTES: Motion to adopt Ordinance 2021-12 amending the Zoning Ordinance to provide for secondary dwelling unis within detached accessory buildings in certain zoning districts and approve publication in summary form. 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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 not exceed the gross floor area of the principal building or not greater than one thousand two hundred (1,200) square feet, whichever is less. 5. There shall be a minimum of two hundred forty (240) square feet of area designated within an attached garage or detached accessory building upon the property for off-street parking related to the secondary dwelling unit. 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. There shall be no more than one (1) secondary dwelling per property. 1 9. 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 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 not exceed the gross floor area of the principal building or not greater than one thousand two hundred (1,200) square feet, whichever is less. 5. There shall be a minimum of two hundred forty (240) square feet of area designated within an attached garage or detached accessory building upon the propertyfor off-street parking related to the secondary dwelling unit. 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. There shall be no more than one (1) secondary dwelling per property. 9. 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. 2 MOTION BY: SECOND BY: ALL IN FAVOR: THOSE OPPOSED: ADOPTED by the City Council of the City of Otsego this 24th day of May, 2021. CITY OF OTSEGO BY: Jessica L. Stockamp, Mayor ATTEST: Audra Etzel, City Clerk SUMMARY OF ORDINANCE NO.: 2021-12 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 secondary dwelling unit within a detached accessory building. Section 2. Section 11-52-4 of the City Code (A-2 District — Accessory Use) is hereby amended to add secondary dwelling unit within a detached accessory building 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 24th day of May, 2021. CITY OF OTSEGO BY: Jessica L. Stockamp, Mayor ATTEST: Audra Etzel, City Clerk Pursuant to Minnesota Statutes 412.191, Subd. 4 and 331A.01, Subd.10, this Ordinance is published in summary form. Complete copies of the ordinance are available for inspection by contacting the City Clerk, Otsego City Hall, 13400 90th Street NE, Otsego, Minnesota 55330 during regular office hours.