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HomeMy WebLinkAbout031523 PC MINUTESCITY OF APPLE VALLEY PLANNING COMMISSION MINUTES March 15, 2023 1. CALL TO ORDER The City of Apple Valley Planning Commission Meeting was called to order by Chair Kurtz at 7:00 p.m. Members Present: Jodi Kurtz, Paul Scanlan, Keith Diekmann, David Schindler, Phil Mahowald, Becky Sandahl and Jeff Prewitt Member(s) Absent: None City staff members attending: Planner Kathy Bodmer, Planner Alex Sharpe, Community Development Director Tim Benetti, City Attorney Sharon Hills, and Department Assistant Breanna Vincent. 2. APPROVAL OF AGENDA Chair Kurtz asked if there were any changes to the agenda. CD Director Benetti advised that there were three supplemental items in relation to item 5. C. Short Term Rental Ordinance. CD Director Benetti also requested that item 4. B. Approve 2022 Planning Commission Annual Report be moved to the end of the agenda after the 7. A. Review of Upcoming Schedule and Other Updates. MOTION: Commissioner Schindler moved, seconded by Commissioner Scanlan, approving the agenda with changes. Roll call vote: Ayes - 7 – Nays – 0. 3. CONSENT ITEMS A. Approval of Minutes of March 1, 2023 MOTION: Commissioner Diekmann moved, seconded by Commissioner Scanlan, approving the minutes of the meeting of March 1, 2023. Roll call vote: Ayes – 7 – Nays – 0. 4. ANNUAL BUSINESS MEETING A. Nominate and Approve Officers Jodi Kurtz was nominated for Chair. Paul Scanlan was nominated for Vice-Chair. David Schindler was nominated for Secretary. All nominations were approved unanimously. CITY OF APPLE VALLEY Dakota County, Minnesota Planning Commission Minutes March 15, 2023 Page 2 of 9 5. PUBLIC HEARING A. Lunds & Byerlys On-Sale Liquor Conditional Use Permit Chair Kurtz opened the public hearing. Planner Sharpe provided a brief presentation. Commissioner Scanlan asked if there would be landscaping around the fence area in the patio. Planner Sharpe stated that there would not be landscaping. Commissioner Mahowald asked if the 4’ height for the fence is required in the patio area. Planner Sharpe stated that it was standard practice for exterior patio CUPs. Commissioner Prewitt asked if sales are limited to the café area and if open containers are also limited to that area. Planner Sharpe stated that is correct. Chair Kurtz asked if the alcohol would be brought to the tables and if there would be bussers. Planner Sharpe stated that it is a self-serve system but advised that the applicant could best explain. Anissa Gurstel was present on behalf of Lunds & Byerlys. Mrs. Gurstel advised that there will be a wall of draft options, no wine or spirits is proposed at this time. Customers would approach the counter, show their ID, receive a wristband which allows you to pour yourself a predetermined amount. Commissioner Schindler asked what the hours of operation are. Mrs. Gurstel stated that it would likely be similar to the Highland Bridge location which closes at 8:00 p.m. weekdays and 9:00 p.m. weekends. Chair Kurtz asked what foods will be offered. Mrs. Gurstel stated that it is currently in development, but foods offered at the Highland Bridge location are sushi, small plates, charcuteries boards, appetizers, and warm pretzels with dips. There is no fryer involved. There are also some ready to go foods like sandwiches. With no further comments, Chair Kurtz closed the public hearing. CITY OF APPLE VALLEY Dakota County, Minnesota Planning Commission Minutes March 15, 2023 Page 3 of 9 MOTION: Commissioner Diekmann moved, seconded by Commissioner Scanlan, recommending approval of an on-sale liquor CUP subject to conditions 1 through 3 in the staff report. Roll call vote: Ayes – 7 – Nays – 0. B. CLOVR School of Massage Chair Kurtz opened the public hearing. Planner Sharpe provided a brief presentation. Commissioner Scanlan asked if the hours of operations are similar to other businesses in the area. Planner Sharpe said that the hours are intended as a limiting hour factor and was not evaluated against other businesses within the zone. It is meant to limit an overnight school. Commissioner Sandahl asked for clarification on the “indoors” reference. Planner Sharpe stated that the intent is that the schooling/classes take place indoors as opposed to having massage classes in a parking lot as some activity may be deemed inappropriate. Commissioner Sandahl asked if this would apply to other uses like mechanics. Planner Sharpe stated that this could be evaluated if a future user wishes to do so. The owner of CLOVR LifeSpa, Todd Corbo, was present for questions. Resident, Michele Telis (13637 Duluth Circle) and owner of Infinity Day Spa (14949 Florence Trail, Suite 200) expressed some concerns regarding past employees and non- compete agreements and whether these agreements would be required to students of the school. City Attorney Sharon Hills stated that the public hearing pertains to whether the zone can permit a vocational school and the City does not license vocation schools nor would it license a massage school. With no further comments, Chair Kurtz closed the public hearing. MOTION: Commissioner Scanlan moved, seconded by Commissioner Diekmann, to recommend approval of a draft ordinance amending zoning code §155.003 Definitions and §A28-2 Permitted Uses. Roll call vote: Ayes – 7 – Nays – 0. CITY OF APPLE VALLEY Dakota County, Minnesota Planning Commission Minutes March 15, 2023 Page 4 of 9 C. Short-Term Rental Ordinance Chair Kurtz opened the public hearing. Planner Sharpe provided a brief presentation. Commissioner Mahowald asked if this has been an issue in the City. Planner Sharpe stated that in 2017, this issue was brought forward in anticipation of the upcoming Super Bowl. City Council decided at the time that no further clarification on the ordinance was needed. Since that time, there have been several Code Enforcement complaints and in order to move the cases forward, the City Attorney has advised that the City clarify the ordinance. Commissioner Mahowald asked if the nature of the complaints are due to the misuse of the facility or if it is due to negative occurrences in the neighborhood due to the rental. Planner Sharpe stated that code compliance cases are confidential, though some cases are due to improper use of the homes and some are due to concerned neighbors. This has not applied to whether or not the City enforces as the City’s stance is that it is a commercial operation occurring in a residential zone. The nature of the complaint has not driven staff one way or the other. City Attorney Hills advised that the Attorney’s office states that a residential district is for residential purposes and once a home is rented for short-term or lodging purposes, that use is now commercial and not permitted under the Code. There is also an issue with state lodging taxes. City Council wishes to keep residential districts for residential uses. Planner Sharpe noted that the state lodging taxes are collected by entities such as Airbnb and VRBO, but not received by the City. Commissioner Diekmann asked if homes with rentals for 31 days or more are not considered commercial. City Attorney Hills said that in this case it would be considered residential. Most people rent homes or apartments for a residence on a month-to-month basis. Commissioner Schindler opined that if the property is being rented, it should be considered commercial, regardless of the length of time, as a profit is still being made. Commissioner Schindler asked if those who rent out their homes long-term are paying lodging taxes as well. CITY OF APPLE VALLEY Dakota County, Minnesota Planning Commission Minutes March 15, 2023 Page 5 of 9 City Attorney Hills stated that those renting a home as their residence do not pay lodging taxes. The issue is the use and whether a single-family home in a single-family district is being used as a business. This does not only apply to single-family homes, but also townhomes, apartments, condos, etc. The question is whether the use of a home in a residential zone is for residential purposes. A person traveling and renting a room in someone’s home is for lodging purposes and is not their address listed on their driver’s license, taxes, etc. At that point, the use is not a permitted use under residential districts. Commissioner Schindler advised that this would need to be further discussed.as there are a lot of gray areas to consider such as those who work from home and that would be considered a business. Commissioner Scanlan asked if rental properties need to register. Planner Sharpe stated that they do register with the police department. Commissioner Scanlan asked if some of these properties are registered as rentals. Planner Sharpe stated that some of them are but that does not inherently allow them as a short-term rental. He also noted that home occupations are a permitted use in residential zones though there are some restrictions to keep the residential neighborhood residential. Commissioner Schindler advised that there should be more discussion otherwise the City will be amending parts of the ordinance every other year. Resident, Mel Homan (6400 131st St Ct), shared her experience with renting a room out of her home as a short-term rental. Ms. Homan stated that many of the people she encounters are those are looking to relocate to Apple Valley and are needing somewhere to stay. Ms. Homan stated that she is very selective on the type of person she allows into her home and the app she uses allows her to have control. She also allows pets which most hotels do not. Ms. Homan stated that she relies on this income to help put food on the table and pay for her children’s activities which are locate in Apple Valley. This is not a hobby for her but an income she relies on to be able to work fulltime and not need a second job, as well as be present with her children. Ms. Homan stated that there has never been a disturbance at her home. Resident, John Dusek (13504 Gossamer Ct), stated that there are pros and cons to short- term rentals. In the United States, property ownership includes the right to include and gain income from their property. Mr. Dusek is in favor of having short-term rentals in the City and having them monitored. Short-term rentals are very convenient for those vacationing as well as those who are in transit and moving from one place to another. There are only two hotels in Apple Valley and both are typically booked. If someone CITY OF APPLE VALLEY Dakota County, Minnesota Planning Commission Minutes March 15, 2023 Page 6 of 9 wants to come visit the Minnesota Zoo, they typically need to stay out of town and travel back and forth and there would be advantages to having these people be able to stay in town and feed into the local economy. Mr. Dusek owns several of these types of accommodations in Wisconsin. He stated that in the state of Wisconsin, the Senate made a law that small villages, towns, authorities, etc. cannot make short-term rentals illegal as it is an important part of the vacation model and tourism. Mr. Dusek believes that there is some room for improvement of the regulation of them. He stated that on his Wisconsin properties, the various websites collect a tax from the homeowners which is paid to the cities. Mr. Dusek advised that short-term rentals are typically better kept that longer-term rentals which can often turn into “slumlord” territory. Resident, Michele Telis (13637 Duluth Circle), shared her experience with renting the lower level of her home as a short-term rental. The lower level is 2,200 sq. ft. All of the renters she provides lodging for are families as hotels in the area cannot offer accommodations for families of larger sizes. Her home offers a pool, spa, firepit, and lake access. Many times, people are here to visit other family members or for weddings. Since she lives alone, this allows her to interact with people in the area. She stated that Burnsville, Rosemount, Lakeville, and Saint Paul allow short-term rentals. Ms. Telis also shared that renters are never alone in her home as she does live in the upper level. There are over 1,000 short-term rentals in Apple Valley and the two hotels in the area allow a maximum of 4 people per room. The sales and lodging tax is 10.12% which is collected by Airbnb and VRBO which is then paid to the City. Ms. Telis noted that diversity is also great for the community. Short-term rentals can be a great source of supplemental income. Resident, Terence Kaeder (13121 Doyles Ct), stated he did not believe short-term rentals should be allowed. Mr. Kaeder stated that his neighbor operates a short-term rental and there are always large quantities of cars in the cul-de-sac and many different people each weekend. Mr. Kaeder would prefer to have a long-term rental where at least it’s the same person. Resident, Brian Eickhoff (13140 Doyles Ct), stated he supported the decision to not allow short-term rentals in the City and shared his experience with living next to a neighbor operating a short-term rental. Mr. Eickhoff stated that his next door neighbors have operated a short-term rental for about a year and a half. The experience is unsettling as his family never knows who will be staying in the home. He noted that the people utilizing short-term rentals rarely establish meaningful relationships within the neighborhood and do not share a common interest in keeping the integrity of the neighborhood. Mr. Eickhoff encouraged City leaders to explore other options for accommodating guests. CITY OF APPLE VALLEY Dakota County, Minnesota Planning Commission Minutes March 15, 2023 Page 7 of 9 Resident, Natalie Humphries (13120 Doyles Ct), shared her experience with turning her residence into an Airbnb about a year and a half ago. Mrs. Humphries stated that she had initially considered a long-term rental but worried how about the wear and tear on her property and how a long-term renter may not care for the property the same way. She shared that when they first started out, they had utilized a third party company to act as a middleman and they did not have the Humphries’ best interests at heart. This company was allowing anyone into the home and there were some disturbances that occurred. Since this negative experience, the Humphries’ have seen an improvement with the clients they serve. Mrs. Humphries shared an excerpt from a past guest which was written in the guest book they keep. She also shared that many families enjoy the opportunity to stay in a home where they have the ability to cook together which could not happen in a hotel. Resident, Sam Humphries (13120 Doyles Ct), stated that the concerns brought forward by previous residents are acknowledged and since the negative experiences, they have taken steps to screen and have control over who they let into their home. Mr. Humphries stated that with proper regulations, short-term rentals can be successful as is proved in other cities like Burnsville and Rosemount. Resident, Michelle Telis (13637 Duluth Circle), returned to note that websites like Airbnb and VRBO have become stringent on vetting and matching information for renters. These organizations have stepped up in improving the security. Resident, John Dusek (13504 Gossamer Ct), returned to state that typically his family and friends will get together in large groups and will look for VRBOs as opposed to hotels as they are not conducive to allowing families to spend time together. A group of their size may need five rooms in a hotel whereas they can rent one VRBO which can accommodate everyone. This arrangement is becoming more common and Apple Valley is one of the only cities in the area to not allow them. With no further comments, Chair Kurtz closed the public hearing. 6. LAND USE A. Cider Ridge Drive-Thru Conditional Use Permit Planner Bodmer provided a brief presentation. Commissioner Scanlan asked if there is any additional sound control being proposed. Planner Bodmer stated that there are no new proposals but they are taking some steps which include a 6’ privacy fence and maintaining existing mature vegetation. CITY OF APPLE VALLEY Dakota County, Minnesota Planning Commission Minutes March 15, 2023 Page 8 of 9 Commissioner Scanlan asked what type of fence it will be. Planner Bodmer stated it would be a 6’ vinyl fence. Commissioner Scanlan pointed out that a lot of time was spent on this approval the first time around and now there are some changes. The requested change in hours of operation due to competitor’s hours seems to be for financial purposes and Commissioner Scanlan wondered if that should be something the Commission takes into consideration. Commissioner Scanlan stated that he would like to see more measures to mitigate headlights and noise. Commissioner Diekmann opined that Cedar Avenue is likely closer to these residences and would generate more noise. He stated he had a difficult time limiting the hours beyond what others in the area have been approved. Commissioner Diekmann expressed that a car going through a drive-thru would not make as much sound as cars going 45-50 mph on Cedar Avenue. Planner Bodmer reminded the Commissioners that there is a pipeline easement so that limits the options available for mitigating noise and headlights. The privacy fence will be a challenge on its own. Commissioner Sandahl asked what the additional steps are referenced in the presentation that could be taken if the 6:00 a.m. start time proves to be an issue. Planner Bodmer said that additional trees could be added. Commissioner Schindler stated that he was comfortable with the change in hours of operation. He was more concerned with the new route through the parking lot to access the drive-thru. Chair Kurtz agreed with Commissioner Diekmann. Commissioner Scanlan asked if there was any feedback from residents. Planner Bodmer stated that there was no feedback from residents. MOTION: Commissioner Scanlan moved, seconded by Commissioner Sandahl, to recommend approval of a 6:00 a.m. start time. Roll call vote: Ayes – 7 – Nays – 0. MOTION: Commissioner Diekmann moved, seconded by Commissioner Mahowald, to recommend approval of a conditional use permit for drive-thru window service in connection with a Class III restaurant subject to