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10-18-95 PCOtsego Home Extended Business Ordinance Background: After receiving strong negative community feedback on a proposed site for a third industrial park, the City Council and EDA requested that the EDAAC draft a new home occupation ordinance that is more community and neighborhood friendly. OTSbEGO EDAAAC. Otsego Home Extended Business Ordinance Objective: to provide an environment that encourages and incubates the development of small business in Otsego while providing for the quiet enjoyment of our neighborhoods. OTSEGO '*'-P6LDAA*r.--6 Otsego Home Extended Business Ordinance Purpose of Proposed Ordinance: • Prevent unfair competition with business districts • Provide for safe and quiet neighborhoods • Encourage small business development in Otsego • Administrative fee based licensing process • Clearly stated Prohibited Activities • Clearly stated Required Conformance Criteria • Conditions for Inspection and Revocations I It OTSAELGO IrWAAC.... Otsego Home Extended Business Ordinance Summary of Proposed Ordinance: Consolidates Section 28 Home Occupations and Section 29 Home Extended Businesses into a new Section 29 titled HOME EXTENDED BUSINESSES Changes the City Policy from prohibiting home extended businesses to encouraging their development in a very controlled process 0% t S tr" G , 0 t' D A A, C. 6 Otsego Home Extended Business Ordinance Summary of Proposed Ordinance: Permitted Hone Extended Businesses clear set of conditions required for a Zoning Administrator issued license. • Special Home Extended Businesses does not involve "Prohibited Activities" but may exceed permitted criteria - will require an Intrim Use Permit by the City Council prior to the issuing of a license. OTSEGO IIEIDAAC. Otsego Home Extended Business Ordinance — Conversation with Gary Schmitz, planning commissioner for the city of Elk River. Much of their philosophy and language was integrated into this proposed ordinance. • The Elk River ordinance has been in effect for approximately four years. • Elk River has not had any major complaints from citizens in the area. • Complaints are usually not a Permitted Home Business • Complaints are received about competition from Home Businesses in cities that do not enforce an ordinance. • Elk River does not enforce its ordinance unless they receive a complaint. • Complaints are normally resolved in a reasonable amount of time. • Elk River has approximately 25 Permitted Home Extended Businesses • Elk River has approximately 20 C.U.P. Home Extended Businesses, these are inspected after one year to ensure all conditions are met. • Elk River charges a $15 recording fee. They do not want their fee to prohibit residents from regestering their businesses. OTSEGO ETJAAAC..,� Otsego Business Survey • 259 Otsego Business Surveys were sent out • 121 (46.8 %) Responses from Businesses were received 66 Confirmed Otsego Businesses 34 sole proprietorships 27 corporations 05 partnerships 138 Potential Otsego Businesses that require confirmation 21 known assumed names to confirm 50 known corporations to confirm • 45 Confirmed Businesses formed prior to January 1,1993 68.2% 21 Confirmed Businesses formed after January 1,1993 31.8% • 39 Confirmed Businesses indicated as primary occupation 59.1% EL L t) AAA ,,. G.. C) It Otsego Home Extended Business Ordinance- Conclusion - we believe we have come up with a friendly and flexible ordinance that provides for a simplified administrative process, We invite the Otsego Manning and Zoning Commission to assist us in the refinement of this ordinance prior to its presentation to the City Council. .%. OTSACLIGO 11011d"I D' A r Section 29 EDAACPRO.WPS HOME EXTENDED BUSINESSES: Section REVISED 8/20/95 20-29-1: Purpose: The purpose of this subsection is to prevent unfair competition with business districts and to provide a means through the establishment of specific standards and procedures by which home extended businesses can be conducted in residential and agricultural districts without jeopardizing the residential character or health, safety and general welfare of the surrounding neighborhood. In addition, this subsection is intended to provide a mechanism enabling the distinction between permitted home extended businesses, so that in most cases, permitted home extended businesses may be allowed through an administrative process rather than by an interim use permit. 20-29-2: Application: Subject to the Non -Conforming Use Section and other applicable provisions of this Chapter, all occupations conducted in the home shall comply with the provisions of this Chapter. This Section shall not be construed, however, to apply to home occupations related to farming. 20-29-3: Prohibited Activities: No home extended business (permitted or special) shall: a. Constitute a fire hazard to neighboring residences, adversely affect neighboring property values, or constitute a nuisance or otherwise be detrimental to the neighbors because of excessive traffic, noise, light, glare, fumes, odor, electrical interference, vibration, dust and other nuisance or safety hazards. b. Adversely impact governmental facilities and services, including roads, sanitary sewer, water, storm drainage, garbage service, police and fire. c. Adversely affect sensitive environmental features including lakes, surface and underground water supply and quality, wetlands, slopes, flood plains and soils, or other factors as found relevant by the City. d. Involve the use of hazardous materials or activities. e. Involve any of the following: body shops, welding, ammunition manufacturing, internal combustion engine repair, flea markets, motor vehicle repairs or sales, massage or escort business or other adult oriented businesses as defined by this ordinance, or other objectionable uses as determined by the City Council. f. There shall be no exterior evidence of the home extended business such as displays, exterior storage of business equipment, materials, merchandise, inventory or heavy equipment, domestic articles such as lawnmowers, boats, cars, etc. if buildings exist, with the exception of a sign. 20-29-4: Permitted Home Extended Business License: Licenses for home extended businesses shall be issued subject to the conditions of this Section, other applicable City Ordinances, Federal and State Law. A "Permitted Home Extended Business License" may be issued by the Zoning Administrator or their agent based on proof of compliance with the provisions of this Subsection. Application for the "Permitted Home Extended Business License" shall be accompanied by a fee as adopted by the City Council by resolution from time to time. The yearly renewal fee shall be set by the City Council by resolution from time to time. Licenses issued are not transferable. If the Zoning Administrator denies a permitted home extended business license to an applicant, the applicant may appeal the decision to the City Council. The license shall remain in force and effect until such time as the activity has ceased for a period of one (1) year, there has been a change in conditions or violation, there is a change of occupancy on the property or until such time as the provisions of this Section have been changed. Permitted home extended businesses are subject to the following criteria: a. The occupation shall be carried on entirely within the dwelling unit, attached garage or detached accessory structure. b. No permitted home extended business shall require internal or external construction features not customarily found in dwellings. c. A maximum of one (1) full-time employee, or equivalent, other than those persons who customarily reside on the premises shall be employed. This provision shall not apply where the permitted home extended business is a meeting place for employees and the work is done off -premise. d. No permitted home extended business shall be serviced by delivery vehicles larger than 26,000 pounds gross vehicle weight. In no instance shall the frequency of the deliveries adversely affect the character of the uses permitted in the zoning district. e. No home extended business shall be conducted between the hours of 10:00 p.m. and 7:00 a.m., or as otherwise permitted by the City. f. Permitted home extended businesses shall not create a parking demand in excess of that which can be accommodated in an existing driveway, where no vehicle is parked closer than fifteen (15) feet from the edge of right-of-way. g. The operation of any wholesale or retail business, unless it is conducted entirely by mail, and does not involve the sale, shipment, or delivery of merchandise on the premise, is prohibited. On-site sales shall be limited to those clearly incidental to services provided by the business. h. Permitted home extended businesses may not involve the repair or use of equipment which is not normally found in a residential area; except that equipment which is typically found in an office may be used. i. All interior and exterior signs must comply with Section 37 of the zoning ordinance. j. A contract shall be required between a refuse hauler and the owner for disposal of all waste including, but not limited to, garbage, decayed wood, saw dust, shavings, bark, lime, sand, ashes, oil, tar, chemicals, offal, and all other substances not sewage or industrial waste which may pollute or tend to pollute the waters of the State. The contract shall be provided to the City prior to issuance of the Home Extended Business License and shall state the destination of the waste and shall be renewed annually on or before January 1st of every year. The City shall be provided with documentation of the contract recorded. k. The limited seasonal sale of products grown solely on the site by the residents of the farmstead shall be exempt from the provisions of this sub- section. 1. Permitted Home Extended Businesses may use for business purposes, a cumulative amount of square footage of an attached garage and accessory buildings, not to exceed the square footage allowed under Section 20-16-4 of the zoning ordinance, regardless of the total area of all existing attached garages and accessory buildings located on the property. Additionally, attached garages must allow a minimum of 200 square feet for the inside storage of at least one passenger vehicle. 20-29-5: Special Home Extended Businesses: Special Home Extended Businesses that do not involve "Prohibited Activities"' but that exceed the "Permitted Home Extended Business Criteria" may be allowed with approval of an Interim Use Permit by the City Council pursuant to the provisions of Section four (4) of the zoning manual. a. Declaration of Conditions: The City Council may impose such conditions on the granting of a "Special Home Extended Business License" as may be necessary to ensure compatibility and to carry out the purpose and provisions of this Section. b. Effect of Permit: A "Special Home Extended Business License" may be issued for a period of one (1) year after which the license may be reissued for periods of up to three (3) years each. Each application for license renewal shall be processed and subject to the approval of the Zoning Administrator, except in cases where written complaints have been received concerning the operation or where there has been a change in conditions or violations, a renewal shall be processed in accordance with the procedural requirements of the initial special home extended business license. c. Lapse of Special Home Extended Business License by Non -Use: Whenever within one (1) year after granting a license, the use as permitted by the license shall not have been initiated, or when the activity as allowed by the special home extended business license has been discontinued for more than one (1) year, then such license shall become null and void unless a petition for extension of time has been granted by the City Council. Such extension shall be requested in writing and tiled with the City at least thirty (30) days before the expiration of the original license. There shall be no charge for the filing of such petition. The request for extension shall state facts showing a good faith attempt to initiate the use. Such petition shall be presented to the Planning Commission for a recommendation and to the City Council for a decision. d. Reconsideration: Whenever an application for a license has been considered and denied by the City Council, a similar application for a license affecting the same property shall not be considered again by the Planning Commission or City Council for at least one (1) year from the date of its denial unless a decision to reconsider such matter is made by not less than four -fifth's (4/5) vote of the entire City Council. e. Renewal of License: An applicant shall not have a vested right to a license renewal by reason of having obtained a previous license. In applying for and accepting a license, the license holder agrees that the monetary investment in the home extended business will be fully amortized over the life of the license and that a license renewal will not be needed to amortize the investment. Each application for the renewal of a license will be reviewed without taking into consideration that a previous license has been granted. The previous granting or renewal of a license shall not constitute a precedent or basis for the renewal of a license. 20-29-6: Inspection: The City may at any reasonable time inspect the home extended business to determine if the applicant is strictly adhering to the criteria for a permitted home extended business or the conditions placed on a special home extended business. Inspection by the City of a home extended business shall take place at a minimum of every three (3) years. 20-29-7: Revocations: 1. Permitted and interim home extended business licenses shall remain in effect until: a. Such time as the business is not in compliance with any portion of this ordinance, any other applicable city ordinance, or any applicable state or federal statute, rule or regulation. b. Such time as there is any violation of the terms and conditions of license approval. c. Such time as there is any change in the conditions of operation of the business as it was originally approved; including any change in the nature of the business, any substantial change in the extent of business, any substantial change in the extent of business operations, any significant expansion of business facilities, or any other circumstances related to the business which have the potential to significantly effect surrounding properties, or which may pose a threat to the health, welfare or safety of the general public. d. Such time as the license expires. At such time that the city has cause to believe that any of the events listed in a, b, or c above have taken place, the city shall immediately notify the license holder of the allegations of violation and the necessary corrections required to bring the license into compliance. The notice shall also contain the date and time for a hearing on the matter at which time the license holder may present any evidence relevant to the allegations in front of the city council, and the city shall present their relevant evidence. After the hearing the city may immediately act to revoke the license, to continue the license with additional conditions including security, or to take no action. No hearing is necessary in the event that the license has simply expired. This Section does not preclude the city from utilizing other legal remedies available to it through this Section, or any other applicable law. 2. If the proposed work described in a home extended business license has not been completed within the time allotted after its date of issuance, the license shall expire and become void except that the council may, following recommendation of the Planning Commission, extend the license for an additional period determined by the council on receipt of a request for license extension prior to its expiration. 20-29-8: Non -Conforming Use: A. Legal Non -Conforming Use: Existing Home Extended Businesses lawfully existing on the effective date of April 13, 1992 may continue as non -conforming uses. They shall, however, be required to obtain licenses for their continued operation. Any home extended business that is discontinued for a period of more than one hundred eighty (180) days, or is in violation of the provisions of the Ordinance under which it was initially established, shall be brought into conformity with the provisions of this Section. B. Illegal Non -Conforming Use: 1. Unapproved and illegal non -conforming home extended businesses existing upon the effective date of this Chapter shall cease and terminate home extended business operations within one (1) year from the effective date of this Chapter. 2. Time extensions may be approved by the City Council upon written request of the property owner provided that a substantiated, unique situation warrants a delay to the termination deadline. In considering such requests, a primary consideration of the City Council shall be the existing and potential development which may be adversely impacted by the home extended business operation.