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VII.3. 101 Oakwood Road Reasonable Accommodation Request; Riggs1 583923v4HP145-43 June 4, 2019 Council Report 2019-064 101 Oakwood Reasonable Accommodation Request Proposed Action: Staff recommends that the Council adopt a resolution denying the requested accommodation sought by Kevin Stanton, on behalf of ninety n ninety, LLC for the property at 101 Oakwood Road (the “Property”) based upon the information contained in this staff report and the findings of fact and conclusions included in the draft resolution. Overview: The Applicant, Kevin Stanton, on behalf of ninety n ninety, LLC, has submitted two requests to the City. The first was an application for a rental license for a single-family home at the Property (originally requested as a spirit lodge convent). The second was a request for an accommodation, as allowed by federal law, to allow up to 17 persons to reside at the Property.1 The Americans with Disabilities Act (the “ADA”), along with the Fair Housing Act (the “FHA”), require that cities make “reasonable accommodations” to existing policies which they determine are necessary to provide an equal opportunity to housing opportunities for individuals with disabilities. Under the ADA, alcohol and drug addiction is considered a qualifying disability, subject to various limitations (e.g., the individual must generally be sober in order to claim disability status). The use of “reasonable accommodations” to zoning code restrictions related to family size are a commonly- employed tool relied upon by sober home operators, and these types of accommodations have, when appropriately supported by record evidence, generally been upheld by the courts. Accommodation requests are not required to be automatically approved. In reviewing an accommodation request under the FHA, the City should employ a burden-shifting analytical framework. The Applicant must first provide a city with sufficient evidence which supports a conclusion that the accommodation is both “reasonable”2 and “necessary”. That is, that without the accommodation, the person with a disability will not enjoy an equal opportunity to housing.3 For the reasons outlined herein, city staff has concluded that, based on the evidence in the record, the requested accommodation is neither reasonable nor necessary. Assuming that the Applicant meets this burden, in order to deny the request, the City then must point to rebuttal evidence which establishes that, despite the necessity of the accommodation request, if approved the accommodation would be unreasonable because it would constitute a fundamental alteration or would constitute an undue burden. City staff has made at least 11 attempts to work with the Applicant regarding Applicant’s rental, code enforcement issues and accommodation request. Given the size, scope, and complexity of 1 The Applicant later supplemented this request to seek approval for up to nine residents. 2 An applicant may simply provide evidence that an accommodation request is facially reasonable, in which case the burden shifts to the city to produce rebuttal evidence that shows that the accommodation would create a fundamental alteration or would impose undue financial or administrative burdens. 3 This analysis is generally highly fact specific and must be made on a case-by-case basis in light of the information and evidence presented by a particular applicant. 2 583923v4HP145-43 the request, City staff in the areas of zoning, building and fire safety, and other areas have identified potential concerns and potential steps that would need to be taken by the Applicant pursuant to various laws and regulations. Frankly, at this point the Applicant has not provided the City with sufficient evidence for staff to compile a comprehensive list of various issues associated with these requests. City staff also received a notification from Hennepin County who, as the local health authority, has issued a cease and desist order to the Applicant based on his failure to satisfy various requirements, including the need for a commercial kitchen, in County ordinance and state law based on the number of individuals proposed to be housed on the Property. On or around May 10, 2019, the City sent the Applicant a detailed letter asking several follow up questions in an attempt to better understand the proposed use of the Property. The goal was to work with the Applicant to identify the breadth of issues, and to determine what, if any, path forward existed. What the City received in response was a copy of the letter that included short, handwritten responses to the questions posed. In reviewing this letter, City staff gained very little additional information supporting the request for an accommodation. In addition, on or around May 29th, the Applicant delivered to City Hall an amended response to the City’s letter which, as far as staff could determine, simply amended the Applicant’s request from 17 persons to nine persons to be allowed to reside on the Property. City staff also scheduled an inspection, pursuant to section 407.07 of the City Code and section 405 of the Property Maintenance Code, of the Property for May 23rd. The purpose of this inspection, like the letter, was at least in part to better understand the issues posed by the Applicant’s request. However, on May 22nd, the Applicant notified City staff that he was unavailable for the inspection on May 23rd, and that he was not willing to allow City staff to complete an inspection of the Property. At or around the same time, the Applicant voiced his belief that he did not need a rental license from the City based upon his proposed activities, and that he wished to not move forward with that application at that time.4 Application of City Code: One of the purposes of the City staff’s attempts to better understand the Applicant’s proposed uses was to better determine the scope of the accommodation being requested. Under federal law, the City can be required to modify any of its policies or practices where necessary to give effect to the ADA and FHA. Based upon City staff’s limited understanding of the proposed operations, the following policies and procedures would need to be modified in order to allow this operation to exist in this location5: 1.An exception to the zoning code which would allow for more than four unrelated individuals to live together in the R-1-C zoning district (up to nine, according to the Applicant’s latest request). 2.A potential exception to the City Code’s parking requirements for single family houses. It is unclear based upon the Applicant’s submissions how many residents of the home will at 4 Because City staff was unable to fully understand the scope of the proposed operations to be carried on at the Property, and because the Applicant did not submit his withdrawal request in writing, City staf f felt it appropriate to continue with the denial of the rental license application for the reasons outlined in the materials associated with that separate agenda item. 5 Attached to the staff report are additional materials which further outline these, an d other, code provisions which would need to be modified in order to satisfy this request. The list included herein is not inclusive, and these lists represent City staff’s conclusions based on their limited knowledge about the proposed operation of the P roperty. 3 583923v4HP145-43 any time keep motor vehicles at the Property. Experiences in other cities would suggest that some of these individuals may not drive. However, City staff has previously received several complaints about the overcrowded parking on the Property, and the Applicant has not provided any information about how he plans to address those concerns when having up to 10 motor vehicles serving the property (nine residents plus one on-site manager or staff person). City Code would generally require at least seven off-street parking stalls for this proposed use of the Property, and the Applicant has not provided any details about how, or whether, he could accommodate such a need. 3.Given the proposed density of the Property, applicable regulations would likely require an active fire suppression sprinkler system to be installed. 4.Egress windows will be required to be installed in each at-grade or below-grade sleeping room. 5.The home will need to be modified to meet various accessibility standards. 6.An exterior exit from the second floor (i.e., a fire escape) will be required. 7.The Applicant will be required to obtain a lodging license from Hennepin County, which may include a licensed commercial kitchen. Staff Recommendation: The question before the city council is whether to approve an accommodation which would allow the Applicant to operate a sober home facility at the Property. As noted above, federal law provides that the City must make reasonable accommodations to its policies and procedures where necessary to afford an equal opportunity to housing for individuals with a disability. Based on the information provided by the Applicant, and the record as a whole, staff recommends that the city council deny the accommodation request for the following reasons: 1.The Applicant has failed to provide any evidence which would indicate that the request to operate a residential facility for up to nine unrelated individuals is facially reasonable. 2.The Applicant has failed to provide any information which initially proves that such an accommodation is necessary. The Applicant has failed to point to any specific barriers which exist that inhibit a disabled person from having an equal opportunity to housing in this neighborhood, or in the City generally. The Applicant has also not provided any information which would suggest why nine residents is necessary, rather than four as the city code currently allows. The record is void of any evidence which would establish a prima facie case that the requested accommodation is necessary. 3.Because the Applicant failed to satisfy their obligation to make a prima facie case related to the necessity of the requested accommodation, the City is not required to provide rebuttal evidence related to the reasonableness of the requested accommodation. However, given the significant scope and impact of the requested accommodation, it is appropriate to note that City staff also believes that the requested accommodation is unreasonable because it would constitute a fundamental alteration to the surrounding neighborhood and would likely create a financial and/or administrative burden on the City’s services. 4.As noted herein, City Code would generally require six off-street parking stalls to serve this Property given the proposed use. The Applicant has provided no evidence regarding how they propose to manage up to ten additional motor vehicles associated with this Property. The surrounding neighborhood is residential in nature, with limited on -street parking available. The Applicant’s apparent reliance on on-street parking to serve as the parking for the increased density of this Property constitutes a fundamental alteration to 4 583923v4HP145-43 the neighborhood, and will interfere with other residents’ ability to utilize that parking as well. Additionally, parking up to ten additional motor vehicles associated with the Property on the street is likely to create additional burdens for City staff during snow-removal operations during the winter months. 5.City staff has already received several calls regarding various code violations at this Property. It is therefore likely to assume that the City will continue to receive complaints regarding the ongoing use of the Property if an accommodation were approved. While some portion of these calls represent a typical responsibility of City staff (i.e., respo nding to resident’s concerns and complaints generally), the anticipated logistical issues, compounded by the apparent lack of a detailed plan of operation provided by the Applicant, are likely to create a significant and undue administrative burden for Cit y staff in the volume and scope of complaints that is anticipated. 6.The proposed use of the Property also highlights several life safety concerns for both the prospective residents and emergency services personnel. A primary function of a local governmental entity is to ensure the safety of its residents, and one method used to accomplish that is the adoption and enforcement of various safety codes. Here, the Applicant has not provided any evidence about how they plan to comply with these codes. Additionally, without having an opportunity to inspect the Property, emergency services personnel are unable to know what, if any, additional life safety risks are posed to both the residents, and to city personnel who may be called to respond to an emergency sit uation, such as a fire. Based on the foregoing, city staff recommends that the city council adopt Resolution Number 2019-047, denying the Applicant’s request for an accommodation pursuant to the Fair Housing Act, based upon the findings of fact and conclusions contained therein. Attached Supporting Materials: Exhibit 1 – April 5, 2019 Letter regarding ordinance violations Exhibit 2 – April 10, 2019 Rental license application – spiritual lodge convent Exhibit 3 – April 25, 2019 Code violation letter Exhibit 4 – May 3, 2019 Corrected rental application – single family home Exhibit 5 – May 10, 2019 Staff letter –accommodation information request and notice of rental license denial hearing Exhibit 6 – May 22, 2019 Response to staff letter regarding accommodation information request Exhibit 7 – May 29, 2019 Amended accommodation request Exhibit 8 – Memoranda outlining additional code violations of proposed use Exhibit 9 – Copy of Cease and Desist letter issued by Hennepin County Exhibit 10 – Resolution Number 2019-047 5 583923v4HP145-43 EXHIBIT 1 6 583923v4HP145-43 EXHIBIT 2 7 583923v4HP145-43 EXHIBIT 3 8 583923v4HP145-43 9 583923v4HP145-43 EXHIBIT 4 10 583923v4HP145-43 11 583923v4HP145-43 12 583923v4HP145-43 EXHIBIT 5 13 583923v4HP145-43 14 583923v4HP145-43 15 583923v4HP145-43 16 583923v4HP145-43 EXHIBIT 6 17 583923v4HP145-43 18 583923v4HP145-43 19 583923v4HP145-43 20 583923v4HP145-43 21 583923v4HP145-43 22 583923v4HP145-43 23 583923v4HP145-43 24 583923v4HP145-43 25 583923v4HP145-43 26 583923v4HP145-43 27 583923v4HP145-43 EXHIBIT 7 28 583923v4HP145-43 29 583923v4HP145-43 EXHIBIT 8 Information Related to Accommodation Request The Basic Life Safety requirements below would be required regardless of the request for accommodation. By adopting the 2015 Minnesota State Building Code and the 2006 International Property Maintenance Code, the City of Hopkins has Building Code and Construction Standards in place in an effort to ensure health and safety, and preserve the quality of our neighborhoods and protect our community and residents. Due to the fact the building use and occupancy classification has changed from Residential Code IR C-1 Dwelling Single Family to Residential R-3 Congregate Living Facility in the Commercial Code, the following items will need to be investigated and addressed if the reasonable accommodation request is approved: 1. MN licensed architect would need to review the existing building condition and submit building plans for the required upgrades 2. Fully monitored NFPA 13, OR 13-R fire sprinkler system is required 3. Water line servicing the building may need to be upgraded to support the required sprinkler system 4. Emergency escape and rescue windows required in each sleeping room 5. Walls separating sleeping units in the same building shall be constructed as fire partitions 6. One accessible entrance is required 7. One accessible route from the accessible entrance to primary funct ion areas 8. Accessible signage 9. Accessible parking 10. Accessible route connecting the accessible parking to the accessible entrance 11. One fully accessible sleeping unit 12. Accessible laundry 13. Accessible kitchen Fire requirements to allow requested accommodation: The Occupancy would be changed from an R-1 to a Congregate Residence which would change the housing from Single Family to an R3. An R3 occupancy would require at a minimum: 1. A sprinkler systems in the structure; 2. An exterior exit off the second floor; and 3. Exit signs and emergency lighting throughout the structure. Public health is handled by Hennepin County in Hopkins. Hennepin County Environmental Health requires a food and lodging license for this use. The County has issued a cease and desist order to the property. 30 583923v4HP145-43 Zoning Violations for 101 Oakwood Road 1. Violation of the City’s Code Section 530.05, Permitted Uses in the Residential Districts.  The subject property is located within the R-1-C zoning districts.  Permitted uses in the R-1-C district are limited to 1 Family Detached Dwellings and Hopkins Owned Park & Rec properties.  City Code Section 515.07, Subdivision 86 provides the definition of Family. Family: an individual or two (2) or more persons each related to the other by blood, marriage, adoption, or foster care, or a group of not more than four (4) persons not so related maintaining a common household and using common cooking and sanitary facilities.  The applicant has indicated there are currently nine (9) unrelated persons residing at the subject property in which violates the City of Hopkins limit of no more than four (4) unrelated person residing in a single family dwelling. 2. Violation of City Code Section 550.01 Subdivision 9 – Number of Vehicles.  If there are three or more persons residing at a single family dwelling who have valid Minnesota driver’s licenses showing the residence address, then the total number of passenger vehicles allowed to be parked outside is increased to a number equal to the number of licensed drivers residing at the property, plus one passenger vehicle.  Complaints to the City indicated the site had more vehicles than allowed under this standard.  Based on the information supplied by the applicant, City staff cannot determine compliance with this standard. 3. Violation of City Code Section 550.05, Subdivision – Required Off-Street Parking.  One and Two-Family Dwellings are require to provide at least one parking space for each dwelling unit of 1200 square feet or less and two parking spaces for each dwelling unit over 1200 square feet, plus one additional parking space for each two roomers accommodated. A garage will fulfill this requirement. A building permit may not be granted to convert a garage to living space unless other acceptable provisions are made to provide the required parking space.  According to Hennepin County, the subject property is approximately 4,800 square feet in size.  According to the applicant, nine (9) unrelated person reside at the subject property.  Based on this information, the subject property is required to provide at least six (6) off-street parking stalls (2 stalls for a dwelling over 1,200 square feet and 4 additional stalls for the 8 roomers).  Based on the information supplied by the applicant, City staff cannot determine compliance with this standard. 31 583923v4HP145-43 EXHIBIT 9 Public Health Department Epidemiology and Environmental Health Epidemiology: (612) 543-5230 1011 South First Street, Suite 215 Environmental Health: (612) 543-5200 Hopkins, MN 55343-9413 FAX: (952) 351-5222 Date: May 29, 2019 OPERATOR: NOTICE TO CEASE AND DESIST ESTABLISHMENT: Kevin J. Stanton Ninety N Ninety LLC 101 Oakwood Road Hopkins, Minnesota 55343 YOU ARE HEREBY ORDERED TO DISCONTINUE ALL OPERATIONS OF FOOD HANDLING AND STORAGE FOR OPERATION OF OVER FOUR PEOPLE. DISCONTINUE LODGING OPERATIONS FOR OVER FOUR PEOPLE. EFFECTIVE JUNE 6, 2019. Your food and lodging establishment has been found to be operating without a valid Hennepin County License. In order to be compliant, you must remove residents over the number of four from this establishment. Then a food facility plan must be submitted for review in accordance with MN Rules 4626.1720 and Hennepin County Ordinance #3 Section 6: 6.2 to 6.4. Additionally you must apply for a license, in compliance with the requirements of Hennepin County Ordinance 3, Section 4: 4.2 and MN Rule 4626.1755. A lodging facility plan must be submitted for review in accordance with MN Statute 157 and Hennepin County Ordinance #6, Subsections 7. Additionally you must apply for a license, in compliance with the requirements of MN Statute 157 and Hennepin County Ordinance #6 Subsection 3. A plan review application can be found at: www.hennepin.us/planreview (third link at the bottom of the site). Once the plan is approved, an application and invoice will be sent out for licensure. You may not reopen this establishment for more than four people until you have obtained a valid Hennepin County license, and City of Hopkins Approvals. Failure to comply with the orders stated in this Notice to Cease and Desist by June 6, 2019, may result in additional enforcement action. Sincerely, Joseph W. Jurusik Supervising Environmentalist 32 583923v4HP145-43 cc: Mandi Veith, Environmentalist Julia Selleys, Supervising Environmentalist Lori Lynn, Hennepin County Licensing Chris Kearney, City of Hopkins Building Official 33 583923v4HP145-43 EXHIBIT 10 [to be added] CITY OF HOPKINS Hennepin County, Minnesota RESOLUTION 2019-047 A RESOLUTION DENYING A REQUEST FOR AN ACCOMMODATION TO OPERATE A SOBER HOME LOCATED AT 101 OAKWOOD ROAD WHEREAS, the applicant, ninety n ninety, LLC, a limited liability company formed under the laws of the state of Minnesota (the “Applicant”), submitted a written request for a reasonable accommodation for the property located at 101 Oakwood, Hopkins, MN (the “Property”); and WHEREAS, the procedural history of the application is as follows: 1. On April 5, 2019, City staff sent the Applicant a letter outlining information which the City believed supported allegations of ongoing code violations occurring on the Property, chief among them is the fact that more than four unrelated individuals are residing on the Property in violation of City Code, sections 515.07, subd. 86 and 530.05; 2. Based upon initial conversations with the Applicant, he had identified a desire to use 1 the Property as a spiritual lodge, convent. Because of this, City staff directed him to fill out a rental license application; 3. On April 22, 2019, City staff from the Engineering, Inspections, Community Development, and Fire divisions met with the Applicant, in person, to discuss several code-related concerns that City staff had based upon their basic understanding of the use being proposed by the Applicant for the Property; 4. On April 25, 2019, City staff issued a code enforcement letter documenting the April 22, 2019 meeting, and further outlining the alleged ongoing code violations. The letter further scheduled a code enforcement inspection for May 23, 2019, and requested that the Applicant submit an updated or new rental license application which listed the appropriate category of use, a single-family residential home; 5. On May 3,2019, the Applicant provided an updated rental license application. The Applicant further requested that the City process a reasonable accommodation request pursuant to the Americans With Disabilities Act and Fair Housing Act (collectively, 2 the “Act”), as amended; 1 It is noteworthy that the Applicant initially explicitly indicated to City staff, on several occasions, that he had no intent to operate a sober home facility on the Property. Based in part on this, City staff viewed the proposed activity as a form of rental lodging, and therefore proceeded with the rental license application procedure. 2 The Applicant’s request for a reasonable accommodation consisted of his request for a “reasonable accommodation form”, which the City does not have. The Applicant then provided reference to the city of St. Paul’s reasonable accommodation process as one justification for his request. 1 6. To comply with the City’s obligation under the Act, the City sent a letter to the Applicant on May 10, 2019, with several questions which were intended to garner additional information necessary for the City to process a reasonable accommodation request; 7. On May 22, 2019, the Applicant called City staff to notify them that he would not be available for the inspection scheduled for May 23, 2019. Staff attempted to reschedule but were unsuccessful. The Applicant also indicated at this time that he was no longer interested in obtaining a rental license application, but instead would like the City to provide a reasonable accommodation to allow him to operate a sober home for up to 17 residents. The Applicant provided additional summary information about the proposed operations of the Property; 8. On May 29, 2019, City staff received an updated response letter from the Applicant which, as far as staff can determine, simply amended the original response to request up to nine, as opposed to 17, residents to reside on the Property. WHEREAS, the City Council addressed the rental license application as a separate action, pursuant to the requirements of section 407 of the City Code. NOW, THEREFORE, BE IT RESOLVED based on the information provided by the Applicant, the City Council hereby denies the requested accommodation – to allow the Applicant to operate a sober home consisting of up to nine unrelated persons residing together on the Property where the City Code allows for no more than four – based upon the following findings of facts: 1. Based upon the Applicant’s request, the proposed use – a sober home – would classify the Property as eligible for a reasonable accommodation under the Act. Specifically, houses which provide communal living to individuals with alcohol addiction have been found to be eligible for reasonable accommodations, as chemical dependency is generally a qualifying disability under the Act. 2. Pursuant to the Act, the Applicant bears the initial burden of establishing that their request is both reasonable and necessary to afford disabled persons an equal opportunity to housing. If the Applicant makes the requisite showing, the City may consider evidence that the requested accommodation would constitute a fundamental alteration to its policies, or in the zoning context the neighborhood, and/or whether the requested accommodation would constitute and undue financial or administrative burden on the City. 3. The Applicant has provided no material evidence to support a finding that the request is reasonable as a matter of law. While an applicant may contend that their request is facially reasonable as a sufficient means to satisfy this obligation, in this case the Applicant has failed to provide even a basic assertion or evidentiary support for the position that the request to allow up to nine unrelated individuals to reside on the Property is reasonable where the existing City Code only allows for four such persons to reside thereupon. 4. The Applicant has provided no material evidence which would support the request for an 2 accommodation in this case. Specifically, the Applicant has failed to articulate any rationale for why allowing up to nine individuals to reside on the Property is necessary to afford persons with a disability an equal opportunity to obtain housing as those rights experienced by individuals who are not disabled. The Applicant’s written responses to the City’s request simply state that the proposed accommodation will satisfy the “need for after clinical treatment housing.” However, the City Council concludes that this statement, viewed in light of the entire record, is insufficient by itself to support a finding that the requested accommodation is necessary. 5. An accommodation to allow up to nine residents to reside on the Property would constitute a fundamental alteration to the surrounding neighborhood. In response to the City’s request for information about the number of residents who will reside on the Property and who will also keep motor vehicles on the Property, the Applicant simply stated that “\[t\]hose that have valid license\[s\] and registration\[s\]”. Based upon the size and proposed density of the occupancy on the Property, the City Code would require at least six off-street parking stalls. However, the Applicant indicated in his responses that these vehicles would largely utilize on-street parking. The Applicant refused to provide a site plan showing any off-street parking available on the Property. However, given the residential character of the surrounding neighborhood, providing on-street parking spaces for up to nine additional motor vehicles will constitute a fundamental alteration to the neighborhood. Such parking would also create an undue burden on City services, particularly in the winter months where the City is routinely engaged in plowing the snow from the streets surrounding the Property. City staff has also received several complaints from surrounding neighbors regarding parking issues near the Property since the Applicant began utilizing the Property in its current manner. While it is reasonable to expect that City staff will be required to deal with various neighbor complaints on a day-to-day basis, the number and frequency of complaints received regarding this Property, coupled with the Applicant’s failure to provide any information related to mitigating the legitimate public concerns raised thus far, indicate that the administrative burden placed upon City staff to monitor and respond to such issues should the accommodation be granted is extraordinarily high. 6. Based on the foregoing, the City Council has determined that the requested accommodation is neither reasonable nor necessary and is therefore denied. Further, the City Council finds that if the accommodation request were reasonable and necessary, the evidence supports a finding that the accommodation, if granted, would constitute a fundamental alteration of the neighborhood and would further create an undue administrative and financial burden for the City, and therefore must be denied. NOW, THEREFORE, BE IT FURTHER RESOLVED by the City Council of the City of Hopkins that all recitals set forth in this Resolution are incorporated into and made part of this Resolution, and more specifically, constitute the express findings of the City Council. 3 th Adopted by the City Council of the City of Hopkins this 4 day of June, 2019. ATTEST: ______________________ _______________________ Amy Domeier, City Clerk Jason Gadd, Mayor 4