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VII.1. Resolution Approving Conditional Use Permit application for 513 7th Avenue South to be used for short-term rental; Howard November 1, 2022 Council Report 2022-099 513 7TH AVENUE SOUTH CONDITIONAL USE PERMIT FOR SHORT-TERM RENTAL Proposed Action: Staff recommends that the Council approve the following motion: Move to adopt Resolution 2022-071, approving the Conditional Use Permit application for 513 7th Avenue South to be used for short-term rental, subject to conditions. Overview The applicants, Yevgeniy Ogranovich and Anna Ovsyannikova, have submitted an application for a conditional use permit to allow short-term rental of their property located at 513 7th Ave S. The subject property contains a two bedroom, one bathroom single family home with a detached garage and two off-street parking spaces off the alley. The site is currently guided for Traditional Urban land use by the 2040 Comprehensive Plan and zoned N3-B, Small Lot Traditional Neighborhood. Based on the findings in this report and the recommendation of the Planning and Zoning Commission made at their October 25, 2022 meeting, staff recommends approval of this application subject to the conditions detailed in the attached proposed resolution. Primary Issues to Consider • Background • Conditional Use Permit Review and Approval Criteria • Alternatives Supporting Documents • Application & Narrative • Email Comments • Planning and Zoning Commission Resolution 2022-09 • Proposed Resolution 2022-071 _____________________ Kurt Howard Planner Financial Impact: $ N/A Budgeted: Y/N ____ Source: _____________ Related Documents (CIP, ERP, etc.): _________________________________________ Notes: 513 7th Avenue South – Conditional Use Permit for Short-Term Rental Page 2 BACKGROUND The property at 513 7th Avenue South contains a single family home and detached garage constructed in 1941 per County records. The property also contains two off-street parking spaces located next to the detached garage off the alley. The property was purchased by the applicants in August of 2021 and is currently used for long-term rental. The applicants have applied for a conditional use permit to allow the property to be used for short-term rental. PLANNING & ZONING COMMISSION ACTION At their October 25, 2022 meeting, the Planning & Zoning Commission held a public hearing pursuant to the procedures detailed in Article 13 of the Development Code to consider the conditional use permit application. One member of the community spoke during the public hearing and inquired about the number of properties that are currently licensed in the City for short-term rental. The City also received the two attached written comments during the public comment period. During their discussion, the Planning & Zoning Commission discussed the duration of the applicants’ ownership of the property, proposed operation and maintenance of the site, inspection and enforcement mechanisms available to the City, availability of off-street parking, supplemental use regulations for short-term rentals, and broader questions about the role of short-term rentals within the Hopkins in general. The Planning & Zoning Commission unanimously approved a motion recommending the City Council approve this application. ZONING AND LAND USE REVIEW The 2040 Comprehensive Plan – Cultivate Hopkins guides the future land use of this property as Traditional Urban. Traditional Urban land use is characterized by moderate density residential dwellings which are predominantly single family dwellings but include a mix of duplexes and attached units. The property is zoned as N3-B, Small Lot Traditional Neighborhood. This zone is primarily intended to accommodate detached houses, semi-detached houses, two-unit houses, and attached houses in a traditional neighborhood context featuring smaller lots. The Development Code identifies use of the property for short-term rental as allowable subject to the supplemental use regulations that are detailed on the following pages and upon approval of a conditional use permit. CONDITIONAL USE PERMIT REVIEW AND APPROVAL CRITERIA A conditional use permit may be approved only if it is determined that the proposed conditional use meets all of the following criteria: 1) The proposed conditional use is consistent with the Comprehensive Plan and the purposes of the Development Code Finding: Staff finds that the proposed use is consistent with the Comprehensive Plan and the purposes of the Development Code. Use of the property as a short-term rental will not significantly alter the property’s relationship to or impact on the surrounding neighborhood. The built form of the property is consistent with the character of the Traditional Urban land use. 2) The proposed conditional use complies with all applicable provisions of the Development Code Finding: Staff finds that with the proposed conditions detailed in the attached resolution, the 513 7th Avenue South – Conditional Use Permit for Short-Term Rental Page 3 proposed conditional use complies with the applicable provisions of the Development Code. Staff’s review of the applicable supplemental use regulations are detailed on the following pages of this report. 3) The proposed conditional use will not be injurious to the neighborhood or otherwise detrimental to the public welfare Finding: Staff finds that the proposed conditional use will not be injurious to the neighborhood or otherwise detrimental to the public welfare. Use of the property as a short- term rental will not significantly alter the property’s relationship to or impact on the surrounding neighborhood. ALTERNATIVES 1. Vote to Approve. By voting to approve the conditional use permit, the applicant will be approved to use their property for short-term rental. 2. Vote to Deny. By voting to deny the conditional use permit, the applicant will not be approved to use their property for short-term rental. Should the City Council consider this option, it must also identify specific findings that support this alternative. 3. Continue for further information. If the City Council concludes that further information is needed the item should be continued. 513 7th Avenue South – Conditional Use Permit for Short-Term Rental Page 4 ZONING REVIEW: 513 7th AVENUE SOUTH CONDITIONAL USE PERMIT FOR SHORT- TERM RENTAL Review Date: November 1, 2022 PROJECT DECRIPTION: Application for a conditional use permit to use existing single family home for short-term rental BASE ZONE: N3-B PROPOSED USE: Short-Term Rental BUILDING TYPES ALLOWED: Traditional House COMPREHENSIVE PLAN DESIGNATION: Traditional Urban BUILDING TYPE SELECTED: Traditional House EXISTING USE: Household Living, 1 unit MASTER PLAN REQUIRED? No DEADLINE FOR ACTION November 26, 2022 ZONING MAP Review Key  Meets or exceeds regulation N/A Regulation does not apply  Does not meet regulation Cond. Met per conditions ? More Information Needed PUD PUD/Variance Deviation ARTICLE 5 PRINCIPAL USES Section of Code Regulation REVIEW NOTES 102-580(h) SUPPLEMENTAL USE REGULATIONS  102-580(h)(1) LICENSING AND PERTMITTING Short-term rentals must comply with all applicable licensing and permit requirements of the City and Hennepin County. Applicant has obtained all applicable City licenses. The City is not aware of any County licenses that need to be obtained. Cond. 102-580(h)(2) MAXIMUM OCCUPANCY No more than 6 adults and their dependent children may occupy rooms within a short-term rental. Proposed condition prohibits more than 6 adults and their dependent children occupying the short-term rental at one time.  102-580(h)(3) ACCESSORY DWELLING UNITS Short-term rentals are not permitted on lots occupied by accessory dwelling units. No accessory dwelling unit is present on the property.  102-580(h)(4) STRUCTURE AND SITE ALTERATIONS External structural alterations or site improvements that change the residential character of the lot upon which a short-term rental is located are prohibited. No external structural alterations or site improvements are proposed. 513 7th Avenue South – Conditional Use Permit for Short-Term Rental Page 5 Cond. 102-580(h)(5) REGISTER OF RENTAL GUESTS A register of short-term rental guests must be maintained and made available to the City upon request. Proposed condition requires a register of short-term rental guests to be maintained and made available to the City upon request. Cond. 102-580(h)(6) SPECIAL EVENTS Short-term rentals may not be used for special events to be attended by individuals who are not registered guests of the short-term rental unit. Proposed condition prohibits use of the short-term rental for special events attended by individuals who are not registered guests. Zoning Application Summary Form Applicant Name (Last, First) Daytime Phone Other Phone Email Address Mailing Address City State ZIP Property Address City State ZIP Owner (if other than applicant) Applicable Current Zoning Districts: Type of Zoning Request: R-1-A R-1-B R-1-C R-1-D R-1-E R-2 R-3 R-4 R-5 R-6 B-1 B-2 B-3 I-1 I-2 Institutional Business Park Mixed Use Concept Review Conditional Use Permit Variance Other Zoning District Change Subdivision Approval Ordinance Amendment I hereby certify that all data contained herein as well as all supporting data are true and correct to the best of my knowledge. X Applicant Signature Date X Owner Signature Date City of Hopkins Planning & Zoning 1010 1st Street South, Hopkins, MN 55343 952.935.8474 | 952.935.1834 (fax) | www.hopkinsmn.com 111015 Application Number Administrative Data Summary (Office Use Only) Planning Commission Action Date ˆApproved ˆDenied Council Action Date ˆApproved ˆDenied Resolution Number Date of Public Hearing Notice Date of Public Hearing Application Received Fee Paid Referred to City Engineer Referred to City Attorney Referred to Watershed District Yevgeniy Ogranovich, Anna Ovsyannikova (married couple) 720-422-9591, 612-229-7009 anikova1@gmail.com 15610 Holdridge Rd E Wayzata M 55391 513 7th Ave S Hopkins M 55343 Same Authentisign ID: B3BE138E-8630-ED11-AE83-14CB655B2CA7 Conditional Use Permit Application Please print or type all information. A. General Data Name of Applicant The above named individual, firm or corporation hereby respectfully submits the following data in support of the preliminary information provided on the accompanying zoning application summary form dated __________________ for the purpose of securing a Conditional Use Permit. Contact Person (Last Name, First) Daytime Phone B. Project Information 1. Specify the section of the ordinance which applied to this project: 2. Brief narrative description of this request: 3. Written justification for request, including discussion of how any potential conflicts with existing nearby land uses will be minimized: 4. Check all additional supporting documents and data which are being submitted to help explain this project proposal.  Site Plan  Topographic Map  Detailed Narrative  Operation Plans  Engineering Plans  Landscaping Plans  Elevations Signature I hereby certify with my signature that all data on my application forms, plans and specifications are true and correct to the best of my knowledge. X Signature of Applicant Date City of Hopkins Planning & Zoning 1010 1st Street South, Hopkins, MN 55343 952.935.8474 | 952.935.1834 (fax) | www.hopkinsmn.com continue to next page102015 For Office Use Only Date ____________________ In accordance with Section _______________ of Ordinance __________________________, the City of Hopkins hereby ˆ approves, ˆ denies the foregoing application for a Conditional Use Permit. If approved, said approval is subject to the following general and special provisions: Authorized Signature Title Application Number Yevgeniy Ogranovich, Anna Ovsyannikova 09/09/2022 Ogranovich, Yevgeniy 720-422-9591 Short Term Rental Permit. We are applying for an approval of Short Term Rental Permit. This is a 2 bedroom, 1 bathroom Single Family house. We are experienced, very "hands on" hosts and will do our absolute best to make sure this property is managed in accordance with highest industry standards. We make sure our guests have good rating/reviews. We are not aware of any conflicts. Authentisign ID: B3BE138E-8630-ED11-AE83-14CB655B2CA7 City of Hopkins Conditional Use Permit Application (Page 2 of 2) General Provisions 1. This permit is not valid until the resolution has been recorded at the Office of the County Recorder. 2. This permit does not constitute a building permit, sewage system permit, grading permit, land alteration permit, well permit, fence permit, sign permit or the like. Separate permits may have to be applied for and obtained in order to accomplish all the goals of the project authorized herein. 3. The issuance of this permit does not negate the need to secure other permits from other local units of government, state agencies or federal agencies who may also have jurisdiction over portion of your project. Expiration A conditional use permit expires one year after it has been issued unless the use for which the permit has been granted is in effect. Extensions may be granted provided the applicant submits a letter to the zoning administrator requesting an extension 30 days before the expiration of said approval. The letter shall state the facts of the request, showing a good-faith attempt to utilize the permit, and it shall also state the additional time being requested to begin the proposed construction. The City Council may grant extensions not to exceed one year. Authentisign ID: B3BE138E-8630-ED11-AE83-14CB655B2CA7 From:Anna Ovsyannikova To:Kurt Howard Subject:[EXTERNAL] NARRATIVE: 513 7th Ave S, Hopkins - Application for a Short term rental. Date:Wednesday, September 21, 2022 3:28:56 PM Hello! We are Anna and Yevgeniy (Eugene), applying for an approval to rent our house in Hopkins short term. We are experienced landlords with over 10 years of experience. Recently we have rented our Minneapolis property as an Airbnb, and were very surprised at how much better home is being treated by the short term tenants. Now we can analyze the dynamics of that rental, and see what is working best. Our Hopkins property is a small 2 bedroom, 1 bath Singles Family home. It would make a perfect Short Term Rental. It would not be able to accommodate a large group. Most likely, the tenants would be a family or a couple, unlike bigger homes that can be used for parties. Airbnb platform gives both Guests and Hosts (Landlords) a rating. Anna is a 5 star (best score) host: meaning very hands on, immediate response to inquiries/problems, perfect condition of the property (interior, yard). Guests are also rated by previous landlords (property cleanliness, communication, etc). With 5 stars being the highest rating. We have strict House Rules: (!) We only allow tenants with 5 star rating to automatically book our property. All others are personally pre- screened by Anna and are approved on case-by-case basis. Our house is precious to us, so we are strict when it comes to approving guests. We also want to make sure our neighbors are happy and not bothered by tenants. No events/parties No smoking Quiet hours 9am - 9 pm. A $500 penalty if the police is called to the property (never happened so far). It is very important for both hosts and guests to maintain 5 star rating to ensure future bookings. Our guests have been absolutely amazing so far! There was less damage than our long term rentals. People are very respectful. Advantages of renting property short term VS long term: People typically come to an event (weddings, graduations, funeral, etc.), so they mostly eat and spend time outside the property with their families and friends and come home to sleep only. There is less cooking and wear/tear involved. Parking: There is a deeded pad in the back that can comfortably fit 2 cars. There is also a detached 2 car garage that is being used for our own storage. Pets: Our present long term tenants have 2 dogs. We do not mind pets, but they will be approved on a case-by-case basis only to the tenants with previous good reviews Outdoor light: We do have a regular outdoor light that would stay on. We are not planning to install any motion activated or any sort of special lighting that would possibly disturb neighbors. Move in: Electronic lock will be used for the smooth self check-in process. It produces a unique combination for each guest and would only work for the dates rented. For the neighborhood: Airbnb has a very high standard for the condition of the property. It has to be kept in a perfect, clean and neat shape, which is great for the neighborhood. We hire a professional cleaning crew, lawn and landscape maintenance and snow cleaning services. Unlike long term rental, where yard can get neglected. Airbnb hosts strand to provide a “home like” experience with cozy and elegant spaces. Outdoor is one of the appealing parts, so having it neatly designed and maintained is important (which is great for the neighborhood as well). Our property is precious to us. We want to make sure it is treated well by the tenants (either long or short term). Safety and well being of the neighborhood is our top priority. We are asking to grant us the permission to rent our property short term. As experienced landlords, we will do our best to run it properly. Thank you! Anna and Eugene From:shirleyhop@juno.com To:Kurt Howard Subject:[EXTERNAL] 513 7th ave s short term rental Date:Monday, October 24, 2022 11:11:26 AM Hi: We live at 517 7th Ave S. We are not clear on what short term rental exactly means. We will research further as we cannot attend the meeting. What exactly does short term rental mean.. They started requiring 12 mo. lease. when they couldn't get anyone to sign a 12 month lease they rented to a young couple for a shorter term. I don't know if they signed a lease or what their terms were. Do they need to do a criminal background check.? Is there a recommended number of occupants?. Do they use the garage.? Previous renters couldn't use the garage, even in winter. Who will take care of the yard, cut grass, etc It would be nice if they were sure to get good renters. I will have to vcheck further to see what short term rental means. We would like to see control over the renters. Watch absentee landlords. Our nice family oriented neighborhood is becoming a rental neighborhood. There is also an empty houses on 6th Ave S Thanks for listening. Joe & Shirley Schmit From:Dave Orman To:Kurt Howard Subject:[EXTERNAL] 513 7th Ave S Date:Sunday, October 23, 2022 11:27:04 AM Hi Kurt, Just wanted to send a quick message saying that I’m staunchly opposed to allowing short term rental at this property. We need to be doing things to encourage home ownership and re-investment/cleaning up of properties in the neighborhood. After speaking with several of my neighbors over the last two and a half years living here, many mention the fact that one of the less attractive parts of the neighborhood are the rental properties just to the south on 6th and 7th avenues near valley park. Please do right by the homeowners who care to keep this neighborhood looking nice and do not allow short term rental at this property. Sincerely, Dave Orman CITY OF HOPKINS HENNEPIN COUNTY, MINNESOTA PLANNING & ZONING COMMISSION RESOLUTION 2022-09 RESOLUTION RECOMMENDING THE CITY COUNCIL APPROVE THE CONDITIONAL USE PERMIT APPLICATION FOR 513 7TH AVENUE SOUTH TO BE USED FOR SHORT-TERM RENTAL, SUBJECT TO CONDITIONS WHEREAS, the applicants, Yevgeniy Ogranovich and Anna Ovsyannikova, have submitted an application for a conditional use permit to allow short-term rental of their property located at 513 7th Avenue South; and WHEREAS, the subject property is legally described as Lot 21, Block 49, West Minneapolis, Hennepin County, Minnesota; and WHEREAS, the procedural history of the application is as follow: 1. That the above state application was initiated by the applicant on September 26, 2022 2. That the Hopkins Planning and Zoning Commission, pursuant to published and mailed notice, held a public hearing on the application and reviewed such application on October 25, 2022; all persons present were given an opportunity to be heard; and 3. That written comments and analysis of City staff were considered; and WHEREAS, staff recommended approval of the above stated application based on the findings outlined in the staff report dated October 25, 2022 NOW THEREFORE BE IT RESOLVED, that the Planning & Zoning Commission of the City of Hopkins hereby recommends the City Council approve the Conditional Use Permit application from Yevgeniy Ogranovich and Anna Ovsyannikova to use the property at 513 7th Avenue South for Short-Term Rental, subject to the conditions listed below. 1. All applicable licensing and permit requirements of the City must be met before the use commences. 2. No more than 6 adults and their dependent children may occupy the short-term rental at one time. 3. A register of short-term rental guests must be maintained and made available to the City upon request. 4. Use of the short-term rental for special events attended by individuals who are not registered guests is prohibited. 5. A Resolution approving the conditional use permit must be recorded against the property with the Hennepin County Recorder’s Office and receipt of said recording must be provided to the City before the use commences. Adopted this 25th day of October, 2022. ___________________________ Nathan White, Chair CITY OF HOPKINS HENNEPIN COUNTY, MINNESOTA PLANNING & ZONING COMMISSION RESOLUTION 2022-071 RESOLUTION APPROVING THE CONDITIONAL USE PERMIT FOR 513 7TH AVENUE SOUTH TO BE USED FOR SHORT-TERM RENTAL, SUBJECT TO CONDITIONS WHEREAS, the applicants, Yevgeniy Ogranovich and Anna Ovsyannikova, have submitted an application for a conditional use permit to allow short-term rental of their property located at 513 7th Avenue South; and WHEREAS, the subject property is legally described as Lot 21, Block 49, West Minneapolis, Hennepin County, Minnesota; and WHEREAS, the procedural history of the application is as follows: 1. That the above stated application was initiated by the applicant on September 26, 2022 2. That the Hopkins Planning and Zoning Commission, pursuant to published and mailed notice, held a public hearing on the application and reviewed such application on October 25, 2022; all persons present were given an opportunity to be heard; and 3. That written comments and analysis of City staff were considered; and 4. That the Planning & Zoning Commission of the City of Hopkins unanimously approved a resolution recommending the City Council approve the conditional use permit for 513 7th Avenue South to be used for short-term rental, subject to conditions. WHEREAS, staff recommended approval of the above stated application based on the findings outlined in the staff report dated November 1, 2022 NOW THEREFORE BE IT RESOLVED, that the City Council of the City of Hopkins hereby approves the conditional use permit application from Yevgeniy Ogranovich and Anna Ovsyannikova to use the property at 513 7th Avenue South for short-term rental, subject to the conditions listed below. 1. All applicable licensing and permit requirements of the City must be met before the use commences. 2. No more than 6 adults and their dependent children may occupy the short-term rental at one time. 3. A register of short-term rental guests must be maintained and made available to the City upon request. 4. Use of the short-term rental for special events attended by individuals who are not registered guests is prohibited. 5. A Resolution approving the conditional use permit must be recorded against the property with the Hennepin County Recorder’s Office and receipt of said recording must be provided to the City before the use commences. Adopted by the City Council of the City of Hopkins this 1st day of November, 2022. By:___________________________ Patrick Hanlon, Mayor ATTEST: _______________________________ Amy Domeier, City Clerk