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HomeMy WebLinkAboutStaff Report 03-11-19 PCPH 04-22-19 LU 18-0034Planning Commission Public Hearing PAGE 1 OF 9 LU 18-0034 April 22, 2019 STAFF REPORT CITY OF LAKE OSWEGO PLANNING AND BUILDING SERVICES DEPARTMENT APPLICANT City of Lake Oswego FILE NO. LU 18-0034, Ordinance 2815 LOCATION Citywide STAFF Scot Siegel, AICP, Planning and Building Director DATE OF REPORT March 11, 2019 PLANNING COMMISSION HEARING DATE April 22, 2019 I. APPLICANT'S REQUEST The City of Lake Oswego is proposing to amend Chapter 50 (Community Development Code) of the Lake Oswego Code for the purpose of allowing transient lodging, specifically allowing a Short-Term Rental Lodging use in zones where transient lodging (Hotels) are not currently allowed. The amendment also deletes “Bed & Breakfast” from Table 50.06.002-3. These revisions are more fully described in Section III of this report. The draft code amendments, which would enact these changes, are included in Attachment 2 to Exhibit A-1. II. APPLICABLE REGULATIONS A. City of Lake Oswego Comprehensive Plan Community Culture – Civic Engagement, Policies 1, 2, 4 and 5 Land Use Planning – Development, Policy A-1(b) and A-1(c) Land Use Administration, Policy D-1 Inspiring Spaces and Places – Goal 1, Policy 7 Complete Neighborhoods and Housing, Policy B-1, B-4, and C-6 Economic Vitality, Policy A-7 B. City of Lake Oswego Community Development Code LOC 50.07.003.16.a Legislative Decisions Defined LOC 50.07.003.16.c Required Notice to DLCD LOC 50.07.003.16.d Planning Commission Recommendation Required LOC 50.07.003.16.e City Council Review and Decision Planning Commission Public Hearing PAGE 2 OF 9 LU 18-0034 April 22, 2019 III. INTRODUCTION / BACKGROUND INFORMATION Based on feedback from the community during a two-year public outreach process, and pursuant to City Council input, the City proposes amending the Community Development Code (CDC) to allow Short-Term Rentals (STRs) as Home Occupations. The proposed code amendments if adopted by City Council would require STRs to meet the code requirements for Home Occupations and several supplemental standards that are intended to maintain residential character of the neighborhood and avoid infringing upon the right of residents to the peaceful enjoyment of their neighborhood. The proposed amendment would allow STRs following a “Social Model,” or home-sharing, in conjunction with a residential use, akin to Home Occupation, where residents host visitors in their homes for a fee. The City also proposes to allow exceptions to certain Home Occupation regulations for STRs with Conditional Use Permit approval following a public hearing. The Conditional Use Permit process ensures that a site is physically suitable for a proposed use, and the use is functionally compatible, or can be made functionally compatible, with its surroundings by imposing conditions of approval. The code requirements for Home Occupations and Conditional Uses are similar in that both require that the use be compatible with the neighborhood character. Lake Oswego Code defines transient lodging as overnight accommodations for 30 days or less. [LOC 24.02.010 Transient Lodging Tax] The city’s development code [LOC 50.03.002 Use Table] does not define or classify short-term rental lodging; all types of transient lodging are classified as Hotels, which are allowed only in commercial zones. Home Occupations are defined in the CDC as “a lawful use conducted in a residential zone in or on the premises of a dwelling unit, said use being secondary to the use of the dwelling for dwelling purposes.” This is different than a Hotel, including Bed-and-Breakfast, which are primary commercial uses. Summary of Community Development Code Amendments Consistent with the above, the proposal if adopted would amend the following Community Development Code sections: 1. LOC 50.10.003 Definitions. Adds definitions of Short-Term Rental Lodging and Primary Residence, and amends the definition of Hotel. 2. LOC 50.03.004 Accessory Structures and Uses. Adds Short-Term Rental Lodging to the list(s) of uses permitted in each zone and establishes supplemental standards for STRs under the existing Home Occupation regulations. One item called out for public comment is the dwelling type: One option allows STRs only in conjunction with a detached single-family dwelling. A second option allows STRs in conjunction with any type of dwelling, including Townhouses, Multifamily Planning Commission Public Hearing PAGE 3 OF 9 LU 18-0034 April 22, 2019 Dwellings, and Accessory Dwelling Units. Both options limit STRs to one STR per dwelling. 3. Table 50.03.002-1: Residential Districts Use Table. Allows STRs that exceed certain Home Occupation standards, such as 25% maximum floor area, number of occupants, etc., with approval of a Conditional Use Permit per LOC 50.07.005; this process requires mandatory neighborhood contact/meeting, a public hearing with the Development Review Commission, and an opportunity to appeal a Conditional Use Permit decision to City Council. [A copy of the conditional use authorization criteria per LOC 50.07.005.3 is attached (Attachment A); no changes are proposed. It is included for the reader’s convenience.] 4. Table 50.06.002-3 [Parking]: Minimum Off-Street Parking Space Requirements. Removes “Bed and Breakfast” as a listed residential use. It is a “hotel”, which is listed in the commercial residential category. Amendments shown in bold underline text for additions and strikeouts for deletions. [Boldface text in brackets] are alternative provisions that the Planning Commission specifically seeks public comment. The commentary in text boxes is not part of the code and will be removed before the ordinance is enacted. Non-Land Use Regulations Not Within Scope of LU 18-0034 In addition to the proposed amendments to the Community Development Code in LU 18- 0034, the Planning Commission has received public comments on a variety of non-land use code changes as summarized in a draft memo from the Planning Commission to the City Council. While the code concepts in this memo are not before the Commission (they are not within the Commission’s purview), the Commission has asked that staff transmit the concepts to City Council for their consideration and possible action through separate hearing(s). Effect on Private Covenants and Restrictions The Commission received public inquiry regarding the effect of code amendments authorizing STRs upon any private covenants and restrictions that prohibit STRs. Private covenants and restrictions are adopted privately by homeowners (or the original developer) and enforced by homeowners associations rather than the City’s code enforcement process. It is the legislative purpose of the Commission that the code changes proposed in LU 18-0034 not supersede private covenants or restrictions on the use of real property regarding STRs, and consistent with that purpose the code amendments do not state they would affect private covenants and restrictions. Planning Commission Public Hearing PAGE 4 OF 9 LU 18-0034 April 22, 2019 IV. NOTICE OF APPLICATION A. Newspaper Notice On April 11, 2019, public notice of the proposed CDC text amendments and Planning Commission public hearing will be published in the Lake Oswego Review. B. Measure 56 Notice Since the proposed text amendments do not change the base zoning classification of property or limit or prohibit land uses previously allowed in the affected zone, notice of the proposal was not required by ORS 227.186 (Measure 56). C. DLCD and Metro Notice Pursuant to LOC 50.07.016, staff has provided notice of the proposed CDC text amendments to the Oregon Department of Land Conservation and Development (DLCD) and Metro. V. COMPLIANCE WITH APPROVAL CRITERIA A. City of Lake Oswego Comprehensive Plan Staff has identified the following Comprehensive Plan Policies applicable to this proposal: Community Culture – Civic Engagement Policies 1, 2, 4 and 5. Policy 1: Provide opportunities for citizen participation in preparing and revising local land use plans and ordinances. Policy 2: Provide citizen involvement opportunities that are appropriate to the scale of a given planning effort. Large area plans, affecting a large portion of community residents and groups require citizen involvement opportunities of a broader scope than that required for more limited land use decisions. Policy 4: Encourage citizens to participate through their neighborhood without excluding participation as individuals or through other groups. Planning Commission Public Hearing PAGE 5 OF 9 LU 18-0034 April 22, 2019 Policy 5: Seek citizen input through service organizations, interest groups and individuals, as well as through neighborhood organizations. Findings: The Community Development Code (CDC), which implements the Comprehensive Plan, contains requirements for a citizen involvement program which clearly defines the procedures by which the general public will be notified in the on-going land use planning process and enables citizens to comprehend the issues and become involved in decision making. Over a two- year period, the Planning Commission studied the issues relating STRs and provided feedback on proposed alternatives in six public work sessions where citizen comments were received. In addition, Planning staff conducted a community survey with over 850 responses providing input on STRs. The survey was designed with input from STR proponents and neighborhood association representatives. Public hearings will be held before the Planning Commission and City Council. All required notification measures and opportunities for input as specified in the Code were provided during this process, including noticing to all Neighborhood Associations and business organizations, as well as 465 subscribers to the City’s STR Email List. Therefore, the process followed for these amendments is in compliance with the above cited Comprehensive Plan policies. Conclusion: The City has provided adequate opportunities for public participation consistent with the cited Comprehensive Plan policies. Land Use Planning, Section A Development (Community Development Code) Policy A-1(b) – A-1(c) Policy A-1(b): Maintain land use regulations and standards to: (b) Promote compatibility between development and existing and desired neighborhood character; (c) Minimize and/or mitigate adverse traffic impacts generated by new development on adjacent neighborhoods. Findings: The proposed amendments promote compatibility between dwellings that contain STRs and neighborhood character and minimize traffic impacts on adjacent neighborhoods by requiring that STRs uses conform to the Home Occupation standards, and by limiting the size, intensity, and occupancy of STRs through supplemental use standards. For STRs that exceed certain Home Occupation standards through compliance with Conditional Use criteria, STRs will be compatible, or made compatible through conditions of approval. Conclusion: The proposal is consistent with these policies. Planning Commission Public Hearing PAGE 6 OF 9 LU 18-0034 April 22, 2019 Land Use Planning, Section D Land Use Administration Policy D-1. Policy D-1: Coordinate the development and amendment of City plans and actions related to land use with other affected agencies, including county, state, Metro, federal agency, and special districts. Findings: Staff has provided the required notification to the State, and Metro consistent with this policy. Conclusion: The proposal is consistent with this policy. Inspiring Spaces and Places Goal 1, Policy 7. Goal 1, Policy 7: Enhance the unique character of Lake Oswego’s neighborhoods and commercial districts as the City grows and changes by adopting plans, codes, guidelines and other implementation measures. Findings: The proposed amendments are designed to allow for changes in the market and flexibility in lifestyle choice for residents by allowing STRs under a Social Model (home-sharing) that welcomes guests to the community while protecting the unique character of Lake Oswego’s neighborhoods. By allowing STRs as an accessory use subject to Home Occupation (and supplemental standards), neighborhood character is maintained. Conclusion: The proposal is consistent with this policy. Complete Neighborhoods and Housing Policy B-1 Policy B-1: Provide and maintain zoning and development regulations that allow the opportunity to develop an adequate supply and variety of housing types, and that accommodate the needs of existing and future Lake Oswego residents. Findings: The proposed amendments are designed to allow for changes in the market and flexibility in lifestyle choice for residents by allowing STRs under a Social Model (home-sharing) that welcomes guests to the community while maintaining the primary use of dwellings as residential. By allowing STRs as an accessory use subject to Home Occupation (and supplemental standards), Planning Commission Public Hearing PAGE 7 OF 9 LU 18-0034 April 22, 2019 the City maintains the ability to meet the needs of existing and future residents. Conclusion: The proposal is consistent with this policy. Complete Neighborhoods and Housing Policy B-4 Policy B-4: Preserve and enhance the habitability of existing housing through code inspection and enforcement, and with housing safety programs. Findings: By making STRs legal and requiring that all STRs be properly licensed and regulated, the City will be in a better position to enforce existing housing safety requirements. Compliance with Policy B-4 does not require separate code amendments, as compliance with building code, health, and fire and life safety requirements is already required under existing non-land use codes. Property owners are required to comply with the building code, for instance, when remodeling, including structural work, and changes to electrical, plumbing and mechanical systems. (LOC 45 Building Code; LOC 15.06 Fire Prevention Code); and County health permits). The City Council could decide through a separate, non-land use action to add inspections specifically for STRs, though this is outside the Planning Commission’s purview. Conclusion: Policy B-4 is not applicable to LU 18-0034; however, the proposed amendments are not inconsistent with the policy. Complete Neighborhoods and Housing Policy C-6 Policy C-6: Implement home occupation standards to regulate home-based businesses (occupations) to provide business development opportunities while preventing adverse impacts on residential areas. Findings: By making STRs legal and requiring that they be licensed as businesses, the code amendments allow for additional small-scale business development opportunities as accessory to residential uses. By requiring that all STRs be regulated as Home Occupations, and if the owner seeks certain Home Occupation standards be exceeded by the Conditional Use process, then additionally through the Conditional Use Permit, the amended code controls land use impacts and maintains the residential character of Lake Oswego’s neighborhoods. Conclusion: The proposal is consistent with this policy. Planning Commission Public Hearing PAGE 8 OF 9 LU 18-0034 April 22, 2019 Economic Vitality Policy A-7 Policy A-7: Locate employment and commercial uses in designated areas at appropriate scales and intensities, such as in Employment Centers, Town Centers, Neighborhood Villages, and Commercial Corners. Findings: This policy is not applicable because the proposal requires that STRs be allowed only as Home Occupations and requires Conditional Use approval for STRs that exceed certain Home Occupation standards; therefore, the amended code ensures that the primary use(s) remain residential, not commercial. Conclusion: The proposal is consistent with this policy. // // // Planning Commission Public Hearing PAGE 9 OF 9 LU 18-0034 April 22, 2019 VI. RECOMMENDATION Based on the information presented in this report, staff finds that the proposed amendments, including alternative options, complies with the applicable criteria. EXHIBITS A. Draft Ordinance A-1 Ordinance 2815, draft 03/07/19 Attachment 1: City Council Findings and Conclusions [Not yet available] Attachment 2: Community Development Code Amendments, draft 03/07/19 B. Findings, Conclusions and Order [No current exhibits; reserved for hearing use] C. Minutes [No current exhibits; reserved for hearing use] D. Staff Reports [No current exhibits; reserved for hearing use] E. Graphics/Plans [No current exhibits; reserved for hearing use] F. Written Materials [No current exhibits; reserved for hearing use] G. Letters [No current exhibits; reserved for hearing use] ATTACHMENT A Conditional Use Authorization Criteria per LOC 50.07.005.3 ADDITIONAL DOCUMENT (not part of the land use record) Memo from Planning Commission to City Council (draft, 03/04/19)