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HomeMy WebLinkAbout2017-03-08 CPC MIN PLANNING COMMISSION MEETING MINUTES March 8, 2017 REGULAR MEETING 7:00 P.M. Vice Chairman Hansen called the meeting to order at 7:00 p.m. Present: Vice Chairman Hansen, Commissioners Collins, Fletcher, Hade, Kelly, Lauer and Siess Absent: Chairman Kocon, Councilmember Menikheim Staff: Community Development Director Turnblad APPROVAL OF MINUTES Possible approval of January 11, 2017 meeting minutes Motion by Commissioner Collins, seconded by Commissioner Hade, to approve the January 11, 2017 meeting minutes. Motion passed 6-0-1. Commissioner Hade abstained. OPEN FORUM There were no public comments. PUBLIC HEARINGS Case 2017-02: Special Use Permit for the use of outdoor speakers for the property located at 324 Main Street South. Jeffrey B. Larson, JLB Companies, property owner, and Chris Goetzke, applicant. Community Development Director Turnblad stated that Chris Goetzke is requesting a Special Use Permit (SUP) to provide pre-recorded and live music through an exterior speaker in the outdoor dining area of the Tilted Tiki Restaurant at 324 Main Street South. The pre-recorded music would occur weekdays from 11 a.m. to 10 p.m.; live music would be performed in the summer months by a single musician with a guitar, Thursdays – Saturdays, as well as summer holidays (Memorial Day, Fourth of July, and Labor Day) from 6 p.m. to 10 p.m. One email from a resident on Broadway was received asking that the City limit the hours to reasonable times. Staff recommends approval with five conditions, including stopping music at 10 p.m. every night regardless of the type of music. Chris Goetzke, applicant, said it will be easy going background music. Vice Chairman Hansen opened the public hearing. There were no public comments. Vice Chairman Hansen closed the public hearing. Commissioner Lauer asked if it will reach a point where combined, all the permits for live music will start getting a little loud. He acknowledged that may not impact this particular case. Planning Commission March 8, 2017 Page 2 of 8 Commissioner Kelly stated that in this case, there is a wall separation from the blufftop, which is different from Lion’s Tavern, but he recalled that in similar cases, the Commission has heard concerns from people living on the bluff and downtown that they can’t open their windows in the summer due to the noise. Commissioner Siess asked if there is a decibel rating associated with the nuisance ordinance. Mr. Turnblad replied there is a decibel limit that varies depending on the time of day. Police officers use decibel meters. Commissioner Kelly said he opposes having to grant a bunch of variances; he would like to make the ending times consistent. If he lived on the bluff and had children, having music until 10 p.m. during the week would be too much. He said he was surprised there were no neighbors present to express concerns. He recalled that the Commission has discussed outdoor music requests from Lion’s Tavern, the American Legion, the Freight House, the pizza place, and other businesses. He suggested the Commission look at revising the ordinance regarding hours when outdoor music is allowed to make it more consistent. Mr. Turnblad replied the ordinance requires outdoor music end by 10:00 p.m. so it is consistent. Outdoor music is an allowable use downtown. Without conditions, it could cause incompatibilities among neighbors, so a permit is required. As long as the conditions of the permit are met, the music is allowed until 10 p.m. Commissioner Siess commented that it would be nice to have a grid of all the other special use permits related to outdoor music and their conditions. Commissioner Fletcher pointed out that the risk of allowing outdoor music automatically without a Special Use Permit is that there could be a lot more establishments with outdoor music. Commissioner Kelly recalled businesses in the past asking to be allowed to play music later, and the Commission granting them the ability to go later till 11 pm. Mr. Turnblad explained that any music played after 10 p.m. must be under a special event permit granted by the City Council. Motion by Commissioner Siess, seconded by Commissioner Hade, to approve Case 2017-02, Special Use Permit for the use of outdoor speakers for the property located at 324 Main Street South. All in favor, 7- 0. Case 2017-05: Variance to build an addition to a structure that will include living space and an attached garage to the property located at 1333 Sixth Street South. Michael and Charlene Markwardt, property owners. Community Development Director Turnblad stated that the applicants propose a significant addition to their two-family home. The proposed addition includes two new attached two-car garages and roughly 1,024 square feet of additional living space. In order to expand the home as proposed, setback, coverage, and height variances would be necessary. The applicants have requested the following variances: Planning Commission March 8, 2017 Page 3 of 8 1. A five foot setback variance from the Sixth Street South right-of-way to allow a porch to be constructed 15 feet from the right-of-way (minimum setback of 20 feet is required). 2. A 9.47% coverage variance to allow for the lot’s building coverage to be 34.47% (maximum of 25% is allowed). 3. An accessory structure coverage variance to allow for the construction of two attached two- car garages of 605 square feet and 656 square feet in size. The maximum accessory structure coverage allowed in this district is 1,000 square feet; the requested coverage is 1,261 square feet. 4. A height variance for each new garage to allow for the construction of a half-story of livable space above each garage; the maximum height for an attached garage is one story, not to exceed 20 feet. City staff finds that the variance review criteria have not been satisfied, the cumulative effect of all four variances creates a massing effect that is out of character with the neighborhood, and therefore recommends denial of all requested variances. Commissioner Siess asked if staff feels that with some adjustments, the applicants could still construct the addition. Community Development Director Turnblad replied that the garages could possibly be shortened to be closer to 1,000 square feet. Staff believes the porch is fine because it is not too imposing on the streetscape. Staff is most concerned about total lot coverage, because when 34% of a lot is covered with buildings, it starts to create stormwater runoff problems. Applicant Michael Markwardt, 1333 Sixth Street South, explained that even with the addition, the porch will still be 21.7 feet from the curb. He showed several examples of neighborhood houses that are less than five feet from the curb. Regarding the height variance, he stated there are a dozen examples within one block that have new garages more than one story tall. Regarding the size of the garages, he occupies one side of the duplex and his daughter occupies the other side with her husband. He would like to be able to park both cars on each side. If necessary, he could remove the 420 square foot deck, and then he would be asking for less than a 5% variance on the structure itself. Commissioner Hansen asked how deep the garage is proposed to be from front to back. Mr. Markwardt stated 44 feet. Vice Chairman Hansen opened the public hearing. Paul Roettger, 1337 Sixth Street South, next door, said the Markwardts have been good neighbors. He is willing to work with them. He doesn’t have a problem with the addition. Vice Chairman Hansen closed the public hearing. Vice Chairman Hansen pointed out that pulling the garages forward as designed allows for shorter driveways. Commissioner Siess remarked that each individual variance isn’t really that bad. The garage as proposed really is a story and a half. Mr. Turnblad responded that staff felt that footprint of the garages and the front porch would not greatly impact the neighborhood. He added that the rules for the RB zoning district weren’t written with duplexes in mind, so every time a duplex owner wants to add a reasonably sized garage, they will always run into this situation. He stated perhaps the ordinance should be revised to differentiate between single family homes and duplexes. Planning Commission March 8, 2017 Page 4 of 8 Vice Chairman Hansen said that the fact that the ordinance was written for single family homes, not duplexes, creates a hardship. He would lean in the direction of allowing the variances if the deck were removed. Commissioner Siess agreed. Commissioner Collins pointed out the uniqueness is due to the home being a duplex. He feels the addition should be allowed.. If the raised deck in back is removed, it’s reasonable. Commissioner Hade said he thinks there are good arguments on both sides but this should go to the Council. He feels the ordinance needs to be changed to account for duplexes. Motion by Commissioner Collins, seconded by Commissioner Lauer, to approve Case No. 2017-05, Variance to build an addition to a structure that will include living space and an attached garage to the property located at 1333 Sixth Street South, adding a condition that the applicant remove the raised deck in the back. Motion passed 5-2 with Fletcher and Hade voting nay. START HERE Case 2017-03: Draft Ordinance to regulate short term rentals. City of Stillwater, applicant. Community Development Director Turnblad stated that in August 2016 the City Council hired Hoisington Koegler Group, Inc. (HKGi) to assist with a study on short term home rentals (STHR). HKGi conducted a survey and completed their research and study in September. City staff held a stakeholders’ meeting in October to share the research and discuss the issues associated with STHR. In November the Planning Commission reviewed and discussed the HKGi research and stakeholder comments. In December the City Council held a work session with stakeholders to consider both the HKGi study as well as public and commission input to date, and decided to proceed with development of an ordinance allowing STHR in some form. In January 2017, City staff brought an outline of potential ordinance elements to the Council for more direction prior to developing the first draft of the ordinance. This first draft is now ready for the Planning Commission to discuss. Mr. Turnblad reviewed the six elements that comprise the core of the proposed ordinance. He explained that staff will take all the information gathered and revise the proposed ordinance before bringing it back to the Commission and then the Council. Commissioner Siess asked why inspections are included in the ordinance if the owners have homeowners insurance. Mr. Turnblad responded there are life safety issues that insurance wouldn’t necessarily cover, for instance the temperature of the water. The City would do an initial inspection and then the owner or operator would have a list of their obligations under the ordinance. He added that the City currently has no ordinance governing rental properties. Typically, the County inspects commercial lodging and is comfortable with the inspection program proposed for short term home rentals. The City would consider STHRs as lodging and they would be expected to pay the 3% lodging tax, provide onsite parking, limit the number of guests to 2X the number of bedrooms plus one, and keep guest records. Commissioners Fletcher and Kelly suggested the guest disclosures be available someplace in the home and not just on the web site. Regarding the maximum number of rental days per year, Mr. Turnblad said this needs to be discussed. Consensus on a maximum number has not yet been achieved. Planning Commission March 8, 2017 Page 5 of 8 Commissioner Fletcher asked why there is a difference between Types A and B. Mr. Turnblad replied that the initial concept was introduced to Stillwater by other cities. Duluth has something very similar. In addition, the MN Chapter of the American Planning Association makes the distinction of hosted versus unhosted. Vice Chairman Hansen opened the public hearing. Lee Woolery, 1920 Pine Street West, said he has no intention to rent out his home, but he wanted to speak because he feels the City doesn’t need another quirky ordinance. He feels this ordinance goes too far and represents an intrusion into economic enterprise. For an offsite owner, requiring them to be within 30 minutes travel time of their STHR is unreasonable. The limit of 25 Type B rentals seems low and arbitrary. He thinks the ordinance creates an administrative monster. Kirk Ackerman, 1336 Second Avenue South, said he and his wife are part of the stakeholder group. They have a Type B VRBO and running it has been a fantastic experience. They notified all neighbors before they did it. Stillwater is a destination city and there is a need for rooms. VRBO is a global phenomenon. Having a VRBO helps with maintenance costs of a large home. All their guests sign a contract and they know the house rules. He opposes a limit on the number of rental days. Lance Bondis shared that he started the Minnesota Vacation Rental Alliance which has about 75 members. He is helping St. Paul and Minneapolis to draft similar regulations. He feels the limit of 25 Type B rentals and five Type C rentals is too restrictive, and the regulations seem burdensome. Rentals self-regulate through reviews. Barbara Ackerman, 1336 Second Avenue South, said she and her husband have been doing their VRBO for three years and they are booked two years in advance because of all the weddings. There is a great need for non-traditional family lodging. They require guests to purchase an insurance policy and to pay a deposit for incidentals. They take very good care of the property. She feels some of the proposed regulations are excessive such as requiring license plate numbers. She feels the 30-mile distance requirement should be changed to measure driving time rather than miles. She and her husband can maintain their property from a greater distance. Tom Lynum, Sauntry Mansion Bed & Breakfast, stated his Special Use Permit has 22 conditions and he has had to deal with 13 different governmental agencies since purchasing the business in 1999. He too could argue that this is too restrictive but it has worked, indicated by the fact he has not been in front of this body before and the police have never been called to the Sauntry Mansion. They are very proud of their business and property. If a short term rental is in the Central Business District, this ordinance does not address parking. That should be looked at. He also is strongly against non-owner occupied short term rentals being allowed in residential districts. He feels owners should have to be present in the home. He also made the point that there are a lot of well intentioned people who want to open a legitimate business but there are also others who will think of ways to take advantage of this ordinance. The ordinance also does not address hosting special events. Matthew Stefanek, 210 East Laurel Street, said there are nothing but stellar reviews for the Stillwater VRBOs. It is unrealistic to prohibit unhosted VRBOs. When people rent a VRBO, they don’t want someone else staying in that home. His property is on 1.7 acres, provides off-street parking and has 7,000+ square feet. It used to be a bed & breakfast. He agrees with permitting and licensing VRBOs Planning Commission March 8, 2017 Page 6 of 8 but he feels the ordinance as proposed treats VRBOs more like bed & breakfasts which they are not. He would prefer there be only one type of STHR. Mr. Woolery added that the restriction of only 25 Type B licenses is too low. It seems like restraint of trade and economic protectionism for existing businesses, which he feels is wrong. Jerry Helmberger, 303 Fourth Street North, Aurora Staples Bed & Breakfast, said the conditions on bed & breakfasts are more for the safety of guests than the convenience of owners. His bed and breakfast is also his home. He is very concerned about how guests are being treated because that reflects beyond the City limits. He’s also the president of the Convention and Visitor Bureau and appreciates the 3% lodging tax which helps to market Stillwater. Kirk Ackerman asked if there have been complaints about VRBOs. Mr. Turnblad responded that one complaint has come to him; he is not sure if that is the only one but it is not overwhelming. Mr. Woolery stated he thinks the Council should do wider research. Nationally and internationally, VRBO activity has been going on for decades. There must be a wealth of information available. Vice Chairman Hansen closed the public hearing. Community Development Director Turnblad reminded the Commission that their role tonight is to 1) hold the public hearing; 2) discuss potential changes; and 3) make a recommendation to the Council or table the issue for more information. Commissioner Collins asked how the number 25 was decided on. He feels it could be too low. He likes the idea of licensing STHRs. Commissioner Kelly commented that there really are restrictions on the number of bed & breakfasts, since there is a radius restriction between inns. He questioned if it is fair to a homeowner if three VRBOs pop up on their block. He would like some sort of control because he doesn’t view all the neighborhoods of Stillwater as a marketplace for lodging, they are places to live. He supports there being both Type A and B and feels the number allowed should be limited. He feels the provisional license for Type B needs clarification, and feels the ordinance should include a parking requirement for VRBOs in the Central Business District. Also, the ordinance should address whether special events are allowed. He supports having guest disclosures visible somewhere on the property and not only online. Mr. Turnblad said there is a City-wide special event policy which may need to be added to this ordinance. Commissioner Siess stated she likes the distinction between Types A and B and also the idea of treating the CBD differently. She feels the City needs to be careful about conditions regarding linens and ice machines because VRBOs are self regulating and this could produce a lot more work for staff. She is not sure about limiting the number of rental days per year - Stillwater is too touristy to limit it. She supports requiring proof of insurance. Commissioner Fletcher said she likes the distinction between Type A and B, and sees no need for a maximum number of rental days per year. Proposed regulations concerning linens, pest control and ice makers are excessive. She feels a cap of 25 Type B licenses may be too restrictive. Planning Commission March 8, 2017 Page 7 of 8 Commissioner Lauer said he is leery of over-regulating. The owners have self interest in keeping their property up. Commissioner Kelly agreed that ice makers and linens are too much to regulate. Vice Chairman Hansen said it’s possible the City could hit the 25 cap the day applications open up. He feels the City needs to figure out some sort of limit. It will appear arbitrary to begin with. He would rather have the ordinance as right as possible and as strict as possible to begin with rather than as loose as possible to begin with. Community Development Director Turnblad said the number 25 was suggested by the Council and it is pretty arbitrary. If the City wants to do the full inspection program on Type B then it needs to have the resources available in house to do that. As for the cost of a license, so far there has only been discussion of covering the cost of inspections - it’s not a money making venture for the City. Vice Chairman Hansen stated that as a destination city, Stillwater needs to guard against being just a transient city. Stillwater is appealing because it is a community where people actually live. If the City doesn’t regulate the number of VRBOs, that sense of community could be lost. Commissioner Siess asked why the list of guest names would be required. Mr. Turnblad replied that is lifted out of Duluth’s ordinance. It has to do with public safety. In some communities there is an issue with being able to track down people who cause nuisances. Commissioner Siess asked if there is an amount of insurance that should be required. Mr. Turnblad replied if the homeowner is comfortable with the amount of insurance, the City is not setting an amount. Many of the requirements are not about a certain standard, they are about reminding the proprietors that there are things they need to think about for public safety. Motion by Commissioner Hansen, seconded by Commissioner Hade, to table Case 2017-03, Draft Ordinance to regulate short term rentals, to the next meeting. All in favor, 7-0. NEW BUSINESS There was no new business. STAFF UPDATES There were no staff updates. ADJOURNMENT Motion by Commissioner Fletcher, seconded by Commissioner Collins, to adjourn the meeting at 9:45 p.m. All in favor, 7-0. Respectfully Submitted, Planning Commission March 8, 2017 Page 8 of 8 Julie Kink Recording Secretary