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HomeMy WebLinkAbout2024-08-27 CC Packet Enclosure G' 0 Pa*$ . 111 Date:August 27, 2024 New Business TO: Mayor and City Council FROM: City Planner Scott Richards AGENDA ITEM: Conditional Use Permit and Home Occupation Permit for Transient Lodging/Short Term Rental — 13891 56th Street North BACKGROUND: Keith and Kimberly Warner have made an application for a Conditional Use Permit to allow for transient lodging/short term rental at 13891 56th Street North. The Warner's have been operating an Airbnb in the lower level of their home and received notice from the City that a Conditional Use Permit is required for the business. They have applied for a Conditional Use Permit and Home Occupation Permit to continue operation of the short-term rental within their home. FINANCIAL IMPACT: • DOES ACTION REQUIRE EXPENDITURE OF FUNDS?No ACTION REQUESTED: Approve Resolution for Conditional Use Permit Approve Home Occupation Permit ATTACHMENTS: 1. Planning Report 2. Resolution Page 71 of 144 TPC3601 Thurston Avenue N, Suite 100 Anoka, MN 55303 Phone: 763.231 5840 Facsimile: 763.427.0520 TPC,j)PlanningCo.corn MEMORANDUM TO: Jacob Rife FROM: Scott Richards DATE: August 22, 2024 RE: Oak Park Heights — Conditional Use Permit for Transient Lodging/Short Term Rental — 13891 56th Street North TPC FILE: 236.05 — 24.02 BACKGROUND Keith and Kimberly Warner have made an application for a Conditional Use Permit to allow for transient lodging/short term rental at 13891 56th Street North. The Warner's have been operating an Airbnb in the lower level of their home and received notice from the City that a Conditional Use Permit is required for the business. They have applied for a Conditional Use Permit to continue operation of the short term rental within their home. The property is zoned R-1 Single Family Residential District. The short term rental is considered a home occupation, and a Conditional Use Permit is required under 401.15.M.4 of the Zoning Ordinance. The Planning Commission, at their August 8, 2024, meeting, held a public hearing, took the applicant's and neighbor's testimony, and after consideration of the application, unanimously recommended approval with conditions. The recommended conditions are found below and the in the City Council resolution. Following the Planning Commission review, and upon suggestion of the City Attorney, a condition has been added related to requiring payment of the lodging tax for all past rentals and on-going with continuation of the business. EXHIBITS The review is based upon the following submittals: Exhibit 1: Planning Report with Exhibits — May 21, 2024 PROJECT DESCRIPTION The project description from Keith and Kimberly Warner is found in Exhibit 1 in the Planning Report and as follows: Page 72 of 144 We are the Warners who received a letter from you over the weekend with concerns about our business. We are currently running an Airbnb in the lower level of our home. We offer a maximum of four guests who are screened through Airbnb before booking. We only have one car in our driveway, 90 percent of the time. If they come with two cars, they are asked to park in the street during the authorized months otherwise they can also park in our driveway. We don't provide any other services except for the cost of lodging. We are prepared to meet all requirements and regulations so we can proceed in our business. This is our retirement income and nothing more. This was absolutely not intentional to run a business against city ordinances. My husband and I have run a business for 30 years. We have met all codes and guidelines other than the city requirements that we are just learning about. CONCLUSION/RECOMMENDATION The Planning Commission recommended approval of the request for the Conditional Use Permit to allow for transient lodging/short term rental at 13891 56th Street North, subject to the following conditions as follows: 1. The owner shall occupy the subject property while operating the transient lodging/short term rental unit and will be required to maintain all required licensing, including a home occupation permit from the City of Oak Park Heights. 2. There shall be a limit of three (3) transient guests per bedroom for the transient lodging/short term rental unit. 3. Dining, if provided, and other facilities shall not be opened to the public but shall be used exclusively by the registered guests of the facility. 4. The guests shall be directed to utilize the driveway only and not park on the street. 5. Any excessive occupant noise reported to the City and in violation of City Code shall receive a warning on the first offense and a citation on the second. Continued citations shall be grounds for the suspension or revocation of use permits by the City Council. 6. All transient lodging conditional use permits may be reviewed, including site inspections, by the Building Official at any time. Any violations of the City Ordinance, Building Code, Fire Code or conditions will result in the owner, at minimum, receiving a written warning. Depending upon the nature and circumstances of the violation(s), the City Administrator shall be authorized to schedule a public hearing of the City Council to review 2 Page 73 of 144 the conditional use permit and conditions. Upon review, the City Council may revise or cancel the conditional use permit. 7. Within 30 days of the approval of this Permit, the Applicants shall provide documentation of and account to the City for all past gross revenues obtained by use of the Property for transient lodging purposes since inception of such activities by Applicants and remit to the City all past due lodging taxes and fees associated with those past lodging rentals. The Applicants shall further account and remit to the City on an ongoing basis all future lodging taxes as required by State statute, City Code, policies, and procedures. 8. Any other conditions of the Planning Commission, City Council and City Staff. C: Julie Hultman 3 Page 74 of 144 Hi Julie, We are the Warners who received a letter from you over the weekend with concerns about our business. We are currently running an Airbnb in the lower level of our home. We offer maximum of 4 guests and are screened through AIRBNB before booking.We only have 1 car in our driveway, 90%of the time. If they come with 2 cars they are asked to park on the street during authorized months otherwise they can also park in our driveway. We don't provide any other services except for the cost of lodging. Last January I had called the city to see what guidelines we needed to consider before we moved forward with our business plan. I spoke with someone that told us it was perfectly fine to go ahead with our business in our home, no restrictions in OPH. The women we spoke to on the phone, suggested perhaps we'd want to ask our neighbors but it wasn't necessary to do so. We did chat with several of our neighbors and they were more than happy to see us succeed. We understood Stillwater had restrictions and guidelines to opening this type of business, but OPH did not. Now we realize we should have gotten this in writing,our mistake there. We are prepared to meet all requirements and regulations so we can proceed in our business. This is our retirement income and nothing more.This was absolutely not intentional to run a business against city ordinances. My husband and I have ran businesses for 30 years. We have met all codes and guidelines other than the city requirements that we are just learning about. The letter that was sent,mentioned to seize all bookings in a couple of weeks, However we are booked thru October. AIRBNB will charge us a hefty fee to cancel on already confirmed reservations.This would be devastating to us financially and for the customers. I hope we can get something resolved asap. We'd love to meet with you immediately if possible. Please let us know what would be our next step. Sincerely Kim & Keith Warner Page 75 of 144 e,,( ##2 f '+K # a 0`♦ �4� rvnx '717::.i.,-****: fy t'..1!'il 4..: ::'''.4' i Z (v.. :i7;:-.':A. 4' qc�x t 4:i t • ::',--',-..:','.',.-,ar,,,..:':.-1 4.. r • . = �4, C t .. ` ,. �' � ' � � �� �;�x as.. 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Located minutes from Stillwater... the 1848 Birthplace of Minnesota located on the scenic St. Croix River! A place where authentic paddle wheel riverboats and gondolas glide the waters. Historic Main Street shopping, dining, lodging and entertainment are yours inside this charming town. Beautiful Stillwater is a short drive from the Twin Cities of Minneapolis/St. Paul and Wisconsin border. The space Spending cozy nights in our cabin inspired lower level apartment. Nature comes indoors with spacious 2 bedrooms, 1 bathroom, kitchenette and living room with a fireplace. An air mattress or 2 single cots are available for children as additional guests. Enjoy campfires on your private patio. Guest access Free parking in driveway and a quick walk down the sidewalk leads you to a private entrance. The entire lower level apartment is yours to enjoy. Other things to note We,the owners, reside upstairs along with our 2 indoor cats, Lucy & Charlie Brown. Please reconsider your stay if you have any allergies. Your pets allowed with permission Page 77 of 144 eix #4 .. ,, . tc, , 4.fi - i , , _....... x _ ... ,_ s .. , i _.... _ __ s ____..,, ,, . ,.. , .... ,..., .,. ....: ........ i. i „ , --, mil t { Kv <. Front view of our residence Pathway to entrance of Airbnb is to the right along side of the house i k/ Jf, .4414 i` " torr " . •. is 4 � a 5 4, Private walk Page 78 of 144 `(T� S ,1411 4 -'i g • 0i,„,:rAllifir, ava i #`1k, ' - • 1 lief' r - , -_. , ,. ., we 440ei-V-71, . ; es ' f Backyard entertaining 1 ra .. . 4'4'.'1,; 1 1` iiIILL 1 , iit f,: ,t i 1. 1,,,„,.... pir .. _ _ i . . a Y • •1 I . ev., ' \ die, ..: *"..,,,... ,.. ,.. .,,, 1 . Y =': Page 79 of 144 •ate. roo- .. 1. 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Qco 0 IA C Page 82 of 144 Julie Hultman From: Richard GackeillillaillMMIIIM Sent: Thursday, August 1, 2024 12:01 PM To: Julie Hultman Subject: Conditional use permit to allow Airbnb at 13891 56th ST N The existing neighborhood is zone R1 and we expect it to stay as is. We firmly believe that a "short term rental" is not something we need or want in our neighborhood. Apparently the property has already been renting the unit as we can see 27 reviews posted in the Airbnb web site. This explains the additional traffic coming and going from that end of the cul de sac. Most are driving in excess of the posted 25 mph speed. We believe allowing short term rentals in owner occupied neighborhoods is not in the best interest of this neighborhood and the City of Oak Park Heights. We are adamantly opposed to this request. Please forward to all planning commission members as we cannot locate individual emails. Thank you, Richard &Vickie Gacke 13964 56th ST N Sent from my iPad 1 Page 83 of 144 Julie Hultman From: Jennifer Pinski Sent: Friday, August 9, 2024 11:45 AM To: Julie Hultman Subject: FW: Contact Us (form) has been filled out on your site. Follow Up Flag: FollowUp Flag Status: Flagged Jennifer Pinski, CMC City of Oak Park Heights 651-439-4439 Original Message From: donotreply@form.govoffice.com<donotreply@form.govoffice.com> Sent: Thursday,August 8, 2024 4:34 PM To:Jennifer Pinski<jpinski@cityofoakparkheights.com> Subject: Contact Us(form) has been filled out on your site. Your Site has received new information through a form. Form: Contact Us Site URL: www.cityofoakparkheights.com Name: Tim Hendrickson Street Address: 13961 56th street n Phone No.:651-430-2366 Email Address: Question or Comment: I support the air B and B on 56th street in Oak park heights the home owners are nice people are on site there has not been any problems at this home. If you read the reviews for this residence it is nothing but good. Do Not Click Reply -This e-mail has been generated from a super form. 1 Page 84 of 144 Julie Hultman From: Jennifer Pinski Sent: Thursday,August 8, 2024 12:09 PM To: Julie Hultman Subject: FW: Contact Us (form) has been filled out on your site. Julie, Please distribute in your usual manner. Thank you! Jennifer Pinski, CMC City of Oak Park Heights 651-439-4439 Original Message From:donotreply@form.govoffice.com<donotreply@form.govoffice.com> Sent: Wednesday,August 7, 2024 5:22 PM To:Jennifer Pinski <jpinski@cityofoakparkheights.com> Subject:Contact Us(form)has been filled out on your site. Your Site has received new information through a form. Form:Contact Us Site URL: www.cityofoakparkheights.com Name:Jessica Marquardt Street Address: 13915 56th St N Email Address: arquardt@outlook.com Question or Comment:Comment regarding planning commission and Airbnb on 13891 56th St N: we are neighbors residing next door to the east at 13915 56th St N. Being next door to this residence in which guests are coming and going has not been an issue.There have been no incidences of noise or unwanted guests.All parties have been respectful and quiet. Most days they are not there due to tourism to the area and exploring Stillwater. Thanks! Jessica and Jonathan Marquardt. Do Not Click Reply-This e-mail has been generated from a super form. 1 Page 85 of 144 Julie Hultman From: Sent: Thursday, August 8, 2024 10:07 AM To: Julie Hultman Subject: Air bnb at 13891 56th st n Hello Julie, We are not able to attend the public hearing today regarding the Airbnb across from our house. I know we have exchanged a few emails and you are aware of our concerns. I also talked to Jacob Rife about a week ago and voiced my concerns to him. I thought I would send one more email. When I look on the internet about hosting an Airbnb a lot of information comes up. One is "communicate effectively with your neighbors", let them know about your plans about running an Airbnb and reassure them that you're aware of potential issues and have plans to manage them. This was never done. There is a constant flow of new cars and people! I watched one guest bring their own guests so now we have their friends cars parked up our street. I saw Ubers bring visitors to the guest staying at the Airbnb. The Warner's allow dogs to stay at the Airbnb, so we also have strange dogs in our neighborhood. We also make sure our garage door is down all the time because we are not sure what new stranger might be looking in it. We feel that they are exploiting our quiet neighborhood for their own personal gain. Their website also tells their guests that it is ok to park in the middle of the cul-de-sac, how is this being considerate to their neighbors. Could you please forward this email to the planning commission members.It's just way too much traffic for a small street and quiet cul-de-sac.! thank you for your time Lynn and Chris Diederich Page 86 of 144 kgSi v -- 4.[ A.ds 74„,„zt--„, avt_ 1- ,,V1-603 jo h ILL - — s K- / 1 4 <S4' htie L‘j old, no c -c- .ers Say7 11 XY-07/ rcE,vED PIG 7.1_2024 Page 87 of 144 Ow of 0a~Heigtib City of Oak Park Heights Planning Commission 8/6/2024 This in response to the letter that was sent out about the public hearing for transient lodging at 13891 56th ST North. I live at 13991 56t"ST North my name is Tim Sheridan, I would hope you consider my opinion, I am not in favor of a conditional use permit that would allow any short-term rental in our neighborhood. Thank you for your service to our community. If you have any questions, please feel free to contact me. Tim Sheridan she_ricianat@Bot.com 952-232-9150 -k 8/( /2° 2 4 RECEIVED AUG - 6 2024 ay Of Oak PIA eoktis •aye ::o 4 RESOLUTION NO. CITY COUNCIL CITY OF OAK PARK HEIGHTS WASHINGTON COUNTY, MINNESOTA A RESOLUTION ESTABLISHING FINDINGS OF FACT AND RESOLUTION OF THE CITY COUNCIL THAT THE REQUEST BY KEITH AND KIMBERLY WARNER AT 13891 56TH STREET NORTH FOR A CONDITIONAL USE PERMIT TO ALLOW FOR TRANSIENT LODGING/SHORT TERM RENTAL AS A HOME OCCUPATION, BE APPROVED WITH CONDITIONS WHEREAS,the City of Oak Park Heights has received a request from Keith and Kimberly Warner for a Conditional Use Permit to allow for transient lodging/short term rental as a home occupation at 13891 56th Street North; and after having conducted a public hearing relative thereto, the Planning Commission of Oak Park Heights recommended the application with conditions. The City Council of the City of Oak Park Heights makes the following findings of fact and resolution: 1. The real property affected by said application is legally described as follows, to wit: SEE ATTACHMENT A and 2. The applicant has submitted an application and supporting documentation to the Community Development Department consisting of the following items: SEE ATTACHMENT B and 3. The property is zoned R-1 Single Family Residential District. The transient lodging/short term rental requires a Conditional Use Permit as a home occupation under Section 401.15.M.4 of the Zoning Ordinance; and 4. The subject property is owner occupied and the transient lodging/short term rental unit is in the lower level of the single family structure; and 5. The applicants offer a unit for a maximum of four guests who are screened before booking. There are no other services provided except for lodging; and Page 89 of 144 6. City staff prepared a planning report dated July 31, 2024, reviewing the request for transient lodging/short term rental as a home occupation at 13891 56th Street North; and 7. Said report recommended approval of the Conditional Use Permits subject to the fulfillment of conditions; and 8. The Planning Commission held a public hearing at the August 8, 2024, meeting, took comments from the applicants and public, closed the public hearing, and recommended the application with conditions. NOW, THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL FOR THE CITY OF OAK PARK HEIGHTS THAT THE CITY COUNCIL APPROVES THE FOLLOWING: A. The application submitted by Keith and Kimberly Warner for a Conditional Use Permit to allow for transient lodging/short term rental as a home occupation at 13891 56th Street North, and affecting the real property as follows: SEE ATTACHMENT A Be and the same as hereby approved by the City Council of the City of Oak Park Heights with the following conditions: 1. The owner shall occupy the subject property while operating the transient lodging/short term rental unit and shall be required to maintain all required licensing, including a home occupation permit from the City of Oak Park Heights. 2. There shall be a limit of three (3) transient guests per bedroom for the transient lodging/short term rental unit. 3. Dining, if provided, and other facilities shall not be opened to the public but shall be used exclusively by the registered guests of the facility. 4. The guests shall be directed to utilize the driveway only and not park on the street. 5. Any excessive occupant noise reported to the City and in violation of City Code shall receive a warning on the first offense and a citation on the second. Continued citations shall be grounds for the suspension or revocation of use permits by the City Council. 6. All transient lodging conditional use permits may be reviewed, including site inspections, by the Building Official at any time. Any violations of the City Ordinance, Building Code, Fire Code or conditions will result in the owner, at minimum, receiving a written warning. Depending upon the 2 Page 90 of 144 nature and circumstances of the violation(s), the City Administrator shall be authorized to schedule a public hearing of the City Council to review the conditional use permit and conditions. Upon review, the City Council may revise or cancel the conditional use permit. 7. Within 30 days of the approval of this Permit, the Applicants shall provide documentation of and account to the City for all past gross revenues obtained by use of the Property for transient lodging purposes since inception of such activities by Applicants and remit to the City all past due lodging taxes and fees associated with those past lodging rentals. The Applicants shall further account and remit to the City on an ongoing basis all future lodging taxes as required by State statute, City Code, policies, and procedures. Approved by the City Council of the City of Oak Park Heights this 27th day of August 2024. Mary McComber, Mayor ATTEST: Jacob Rife, City Administrator Page 91 of 144 THIS PAGE INTENTIONALLY LEFT BLANK p Jr(' Page 92 of 144