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10.c1 UDC Amendment for Short Term Rentals Classification1 | P a g e Date of Meeting: August 15, 2023 To: Honorable Mayor and Members of the City Council From: T.J. Hofer, Consultant City Planner Re: UDC Amendment for Short Term Rentals Classification The City has identified an opportunity to reduce restrictions in the Unified Development Code (UDC) regarding vacation and short-term rentals. BACKGROUND The City adopted the UDC on September 20, 2022, to replace the previous zoning and subdivision ordinances. 153.300.020 establishes vacation and short0term rentals (VRBO or similar) require an interim use permit in all districts other than the I-P district. OVERVIEW OF UDC AMENDMENT The draft ordinance language shows what will be struck from the ordinance with a strikethrough and new text as underlined red text. 153.300.020 TABLE OF USES Subd. 1. Classification of Uses. Each Use as established on Table 153.300.020-2. Table of Uses by Base Zoning District is classified as either permitted, permitted through regulation or requirement, or prohibited. The following classifications are provided for reference. (B) Table of Uses. The following table of uses is established by Base Zoning District. Table 153.300.020-2. Table of Uses by Base Zoning District 2 | P a g e BASE ZONING DISTRICTS A-P AG-C RR-G RR-N V-N V-C V-HC R-C I-P Use Specific Section Reference Land Use Ag r i c u l t u r a l P r e s e r v e Ag r i c u l t u r a l C o r e Ru r a l R e s i d e n t i a l Ge n e r a l Ru r a l R e s i d e n t i a l Ne i g h b o r h o o d Vi l l a g e N e i g h b o r h o o d Vi l l a g e C e n t e r Vi l l a g e H i s t o r i c C o r e Ru r a l C o m m e r c i a l In d u s t r i a l P a r k Agricultural and Land Based Uses Vacation or Short Term Rentals (VRBO or Similar) P IUP P IUP P IUP P IUP P IUP P IUP P IUP P IUP 153.300.030 Subd. 1 (GG) 153.300.030 USE SPECIFIC REGULATIONS Subd. 1. Summary. The follow performance standards are established and must be met to obtain the applicable permit as identified on Table 2. Table of Uses by Base Zoning District. The standards which follow are the minimum required standards, and if listed as a conditional use, additional standards or reasonable conditions may be placed on any approved permit for the requested use. All uses shall comply with the rules and regulations of the Base Zoning District, Special District and Overlay Districts where applicable. Any use must also meet the rules and regulations any other applicable agencies with jurisdiction of the subject use including Local, State and Federal agencies. (GG) Vacation or Short-Term Rentals. Vacation or Short-Term Rentals must comply with the following standards. I. Vacation or Short-Term Rentals may not be rented to a single party or user for longer than 30-days in a 12-month calendar year. II. An owner must obtain an Interim Use Permit if the intent is to rent the property for more than 14-days in a calendar year, or if it is posted for rent on any public platform such as VRBO, or similar. III. The property’s appearance may not be substantially altered from the appearance of the principal use of the structure. For example, a single-family detached home may not be altered internally or externally to change its principal use. ANALYSIS Staff Analysis Staff believes that the proposed changes will remove an unnecessary restriction to establishing short term rentals. When the UDC was adopted the requirement that vacation and short-term 3 | P a g e rentals require an IUP likely created a large number of nonconformities in the City. The proposed amendment will address this issue. RECOMMENDATION Staff is requesting direction to prepare an ordinance to amend the UDC as detailed above. Attachments A. Draft Ordinance B. Unified Development Code Section 153.400.100 Signs C. Zoning Map – City of Scandia Page 1 of 2 CITY OF SCANDIA ORDNANCE NO.: 2023-XX AN ORDINANCE AMENDING THE SCANDIA UNIFIED DEVELOPMENT CODE CHAPTER 153.300.020 REGARDING TABLE OF USES TABLE 153.300.020-2 The City Council of the City of Scandia, Washington County, Minnesota hereby ordains: Section 1 Amendment. The City of Scandia Unified Development Code (“Development Code”, or “Code”), Chapter 153.300.020 Table of Uses Table 153.300.020-2 Table of Uses, shall be amended by deleting the stricken text and add the underlined text as follows: BASE ZONING DISTRICTS A-P AG-C RR-G RR-N V-N V-C V-HC R-C I-P Use Specific Section Reference Land Use Ag r i c u l t u r a l P r e s e r v e Ag r i c u l t u r a l C o r e Ru r a l R e s i d e n t i a l Ge n e r a l Ru r a l R e s i d e n t i a l Ne i g h b o r h o o d Vi l l a g e N e i g h b o r h o o d Vi l l a g e C e n t e r Vi l l a g e H i s t o r i c C o r e Ru r a l C o m m e r c i a l In d u s t r i a l P a r k Agricultural and Land Based Uses Vacation or Short Term Rentals (VRBO or Similar) P IUP P IUP P IUP P IUP P IUP P IUP P IUP P IUP 153.300.030 Subd. 1 (GG) Section 2 Amendment. The City of Scandia Unified Development Code (“Development Code”, or “Code”), Chapter 153.300.030 Use Specific Regulations Subd. 1. (GG), shall be amended by deleting the stricken text as follows: (GG) Vacation or Short-Term Rentals. Vacation or Short-Term Rentals must comply with the following standards. I. Vacation or Short-Term Rentals may not be rented to a single party or user for longer than 30-days in a 12-month calendar year. II. An owner must obtain an Interim Use Permit if the intent is to rent the property for more than 14-days in a calendar year, or if it is posted for rent on any public platform such as VRBO, or similar. III. The property’s appearance may not be substantially altered from the appearance of the principal use of the structure. For example, a single-family detached home may not be altered internally or externally to change its principal use. Page 2 of 2 Section 3 Effective Date. This ordinance shall be in full force and effect upon its adoption. Passed and adopted by the City Council of the City of Scandia this XX day of October, 2023. Christine Maefsky, Mayor ATTEST: Kyle Morell, City Administrator City of Scandia, MN CHAPTER 153: UNIFIED DEVELOPMENT CODE (UDC) – SECTIONS REMOVED SECTION 153.300 ALLOWED USES Adopted 09.20.2022, Amended 04.18.2023 (Ord No. 2023-03) 153.300 page-1 153.300 ALLOWED USES Subd. 1. Summary. This section is intended to describe the land uses that are permitted, permitted through regulations or requirements, or that are prohibited within the City. The sections that follow include corresponding references to other Sections of this UDC for ease and reference to ensure all local, state and federal approvals are obtained as required. Subd. 2. Uses not permitted. Whenever in any Base Zoning District or Overlay Zoning District a use is not specifically allowed as a permitted, accessory, conditional, or interim use, nor is such use allowed by administrative permit, the use shall be considered prohibited. In such cases, the City Council or the Planning Commission, on their own initiative or upon request, may conduct a study to determine if the use is acceptable, and if so, which Zoning District would be most appropriate for the use, and the conditions and standards applicable to the use. The City Council, Planning Commission or property owner may initiate an amendment to the Zoning Ordinance to provide for the particular use under consideration, or the City may find that the use is not compatible for development within the City. Subd. 3. Nuisances. No uses that cause noise, odors, vibration, smoke, air pollution, liquid or solid wastes, heat, glare, dust or other adverse impacts that cannot be properly mitigated are permitted in any Zoning District. All uses must follow the standards and regulations as contained within this Section and must follow all applicable rules and regulations of the MPCA, MDH, Washington County and any other agency with jurisdiction over the use. Any enforcement of a nuisance use shall be subject to Chapter [32] of the City Code. 153.300.010 INTRODUCTION AND PURPOSE Subd. 1. Introduction. This section, including the Table of Uses, is organized and classifications are assigned by Base Zoning District. Properties fully or partially contained within an Overlay District are subject to additional standards and use restrictions which are provided in Table 3. Table of Uses by Overlay District, and the process to obtain necessary permitting is provided within Section [153.500] of this UDC. Subd. 2. Purpose. The purpose of this section is to provide a clear description of the uses that are consistent with the character of each Zoning District, and to ensure proper permitting is obtained prior to a use being initiated on a parcel, lot or building. 153.300.020 TABLE OF USES Subd. 1. Classification of Uses. Each Use as established on Table 153.300.020-2. Table of Uses by Base Zoning District is classified as either permitted, permitted through regulation or requirement, or prohibited. The following classifications are provided for reference. (A) Classification References and Acronyms. The table of uses is classified by the following: Table 153.300.020-1. Classification References and Acronyms Classification Corresponding Table Acronym Permitted P Conditionally Permitted – Requires Conditional Use Permit CUP Conditionally Permitted for Temporary Use – Requires Interim Use Permit IUP Permitted with Administrative Permit AP Permitted if Accessory to Principal Use A Not Permitted (or prohibited) Blank City of Scandia, MN CHAPTER 153: UNIFIED DEVELOPMENT CODE (UDC) – SECTIONS REMOVED SECTION 153.300 ALLOWED USES Adopted 09.20.2022, Amended 04.18.2023 (Ord No. 2023-03) 153.300 page-2 (B) Table of Uses. The following table of uses is established by Base Zoning District. Table 153.300.020-2. Table of Uses by Base Zoning District BASE ZONING DISTRICTS A-P AG-C RR-G RR-N V-N V-C V-HC R-C I-P Use Specific Section Reference Land Use Ag r i c u l t u r a l P r e s e r v e Ag r i c u l t u r a l C o r e Ru r a l R e s i d e n t i a l Ge n e r a l Ru r a l R e s i d e n t i a l Ne i g h b o r h o o d Vi l l a g e N e i g h b o r h o o d Vi l l a g e C e n t e r Vi l l a g e H i s t o r i c C o r e Ru r a l C o m m e r c i a l In d u s t r i a l P a r k Commercial Uses Auto Wash CUP Banks, Credit Unions, and other financial institutions P P P Bars and Taverns CUP CUP CUP Beauty Salons, Barbers, Day Spas, Massage Therapy and Similar Personal Services P P P Bed and Breakfast Inns CUP CUP CUP P P P 153.300.030 Subd. 1 (D) Brewery or Cidery CUP CUP CUP CUP CUP 153.300.030 Subd. 1 (E) Catering Services, without on-site food service P P Clubs/Lodges P P P Commercial Daycare Facilities, State Licensed P P P P Commercial Kennel IUP IUP 153.300.030 Subd. 1 (M) Commercial Kennel, accessory to a veterinary clinic CUP CUP CUP Contractor Operations, Shops, and Storage Yards P Copy/Printing Services, Excludes Printing Presses and Publishing Facilities P P P Crematoriums CUP Distillery (Micro) CUP 153.300.030 Subd. 1 (E) Drive-through services CUP CUP CUP 153.300.030 Subd. 1 (G) City of Scandia, MN CHAPTER 153: UNIFIED DEVELOPMENT CODE (UDC) – SECTIONS REMOVED SECTION 153.300 ALLOWED USES Adopted 09.20.2022, Amended 04.18.2023 (Ord No. 2023-03) 153.300 page-3 BASE ZONING DISTRICTS A-P AG-C RR-G RR-N V-N V-C V-HC R-C I-P Use Specific Section Reference Dry cleaning pick-up and laundry pick up stations (not including processing) P P P Exterior Storage – Accessory to a Commercial Use CUP CUP CUP CUP CUP Farmers Market AP AP AP Feed and Seed Sales – Accessory to Agricultural Use A A A Funeral Homes CUP Hotel/Motel CUP CUP Laboratories, Medical, Research, and Testing CUP Laundromat P Light Manufacturing and Assembly P Light Manufacturing and assembly (activities requiring MPCA Minimum Waste Generator License) CUP 153.300.030 Subd. 1 (O) Liquor, off sale CUP CUP CUP Meat Processing, accessory to Grocery Store P P Motor Vehicle, Recreational Vehicle, or Boat Sales CUP 153.300.030 Subd. 1 (R) Motor Vehicle Repair CUP CUP CUP CUP 153.300.030 Subd. 1 (S) Motor Vehicle Service Stations CUP CUP 153.300.030 Subd. 1 (T) Nursing Homes CUP Offices, including Medical, Dental, Chiropractic, Physical Therapy Offices, and Clinics P P P Parking A A A A A A A A A Pet Grooming P P P Printing and Publishing CUP CUP CUP P Processing of food and beverages, excluding animal slaughtering or rendering plants CUP CUP Radio and television stations CUP P City of Scandia, MN CHAPTER 153: UNIFIED DEVELOPMENT CODE (UDC) – SECTIONS REMOVED SECTION 153.300 ALLOWED USES Adopted 09.20.2022, Amended 04.18.2023 (Ord No. 2023-03) 153.300 page-4 BASE ZONING DISTRICTS A-P AG-C RR-G RR-N V-N V-C V-HC R-C I-P Use Specific Section Reference Recreation, Indoor Commercial up to 4,000 SF P P P Recreation, Indoor Commercial greater than 4,000 SF CUP CUP CUP Recreation, Outdoor Commercial (including water dependent) CUP CUP Recreation, Outdoor Private A A A A A A A Research Facilities CUP Resorts/Conference Facilities CUP CUP 153.300.030 Subd. 1 (W) Restaurants, café or coffee shops, delicatessen, ice cream shop, or similar P P P Retail Sales and Services -12,000 SF or Less P P P 153.300.030 Subd. 1 (X) Retail Sales and Services – 12,000 SF – 25,000 SF CUP CUP 153.300.030 Subd. 1 (X) Retail Sales and Services – greater than 25,000 SF CUP 153.300.030 Subd. 1 (X) Rural Event Facility CUP CUP CUP CUP 153.300.030 Subd. 1 (Y) Self-Storage Facilities, mini- storage, Cold Storage enclosed CUP 153.300.030 Subd. 1 (Z) Signs A A A A A A A A A Sports and Fitness Clubs if less than 4,000 SF P Sports and Fitness Clubs, greater than 4,000 SF CUP Storage of Hazardous Materials P/CUP P/CUP P/CUP P/CUP P/CUP P/CUP CUP 153.300.030 Subd. 1(CC) Studios – Artists, Dance, Design Decorating, Music, Photography, and Similar P P P Temporary Outdoor Retail Sales AP AP AP Temporary Produce Stands A A A A A A A A A Theaters (indoor) P P Vacation or Short-Term Rentals (VRBO or Similar) IUP IUP IUP IUP IUP IUP IUP IUP 153.300.030 Subd. 1 (GG) Veterinary Clinic (domestic animal) P P P City of Scandia, MN CHAPTER 153: UNIFIED DEVELOPMENT CODE (UDC) – SECTIONS REMOVED SECTION 153.300 ALLOWED USES Adopted 09.20.2022, Amended 04.18.2023 (Ord No. 2023-03) 153.300 page-5 BASE ZONING DISTRICTS A-P AG-C RR-G RR-N V-N V-C V-HC R-C I-P Use Specific Section Reference Veterinary Clinic (farm animal) CUP Warehousing, Related Offices and Distribution P Wholesaling P P P Winery (Farm) CUP CUP CUP CUP CUP 153.300.030 Subd. 1 (E) Yard Waste Facilities CUP CUP CUP 153.300.030 Subd. 1 (KK) 153.300.030 USE SPECIFIC REGULATIONS Subd. 1. Summary. The follow performance standards are established and must be met to obtain the applicable permit as identified on Table 2. Table of Uses by Base Zoning District. The standards which follow are the minimum required standards, and if listed as a conditional use, additional standards or reasonable conditions may be placed on any approved permit for the requested use. All uses shall comply with the rules and regulations of the Base Zoning District, Special District and Overlay Districts where applicable. Any use must also meet the rules and regulations any other applicable agencies with jurisdiction of the subject use including Local, State and Federal agencies. (GG) Vacation or Short-Term Rentals. Vacation or Short-Term Rentals must comply with the following standards. I. Vacation or Short-Term Rentals may not be rented to a single party or user for longer than 30-days in a 12-month calendar year. II. An owner must obtain an Interim Use Permit if the intent is to rent the property for more than 14-days in a calendar year, or if it is posted for rent on any public platform such as VRBO, or similar. III. The property’s appearance may not be substantially altered from the appearance of the principal use of the structure. For example, a single-family detached home may not be altered internally or externally to change its principal use.