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HomeMy WebLinkAboutStaff Report 03-11-19 PCPH 04-22-19 w-Exhibits 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) DRAFT: 03/07/19 [Note: Optional Sunset provision for Council consideration indicated in italics] Ordinance 2815 (LU 18-0034) EXHIBIT A-1/PAGE 1 OF 2 ORDINANCE 2815 AN ORDINANCE OF THE LAKE OSWEGO CITY COUNCIL TO AMEND CHAPTER 50 (COMMUNITY DEVELOPMENT CODE) OF THE LAKE OSWEGO CODE FOR THE PURPOSE OF ALLOWING SHORT-TERM RENTAL LODGING USE IN ZONES WHERE TRANSIENT LODGING (HOTELS) ARE NOT CURRENTLY ALLOWED; DELETING “BED & BREAKFAST” FROM PARKING TABLE 50.06.002-3; AND ADOPTING FINDINGS (LU 18-0034). WHEREAS, notice of the public hearing for consideration of this Ordinance was duly given in the manner required by law; and WHEREAS, a public hearing before the Planning Commission was held on April 22, 2019, at which the staff report, testimony and evidence were received and considered; and WHEREAS, the Planning Commission has recommended that LU 18-0034 be approved by the City Council; and WHEREAS, a public hearing on LU 18-0034 was held before the Lake Oswego City Council on ___________, 2019, at which the staff report, testimony and evidence were received and considered; and WHEREAS, the Council finds that the Community Development Code should be amended for the purpose of allowing short-term rental lodging use in zones where transient lodging (hotels) are currently not allowed; [and WHEREAS, in order to prompt a timely re-examination of the effects of allowing short-term rental lodging uses, the Council finds it is appropriate to enact a “sunset” provision after which the amendments enacted by this Ordinance, with the exception of the deletion of “bed & breakfast” from Parking Table 50.03.002-3, will automatically expire on ___________, 20____ unless the Council takes further action to extend it;] The City of Lake Oswego ordains as follows: Section 1. The City Council hereby adopts the Findings and Conclusions (LU 18-0034), attached as Attachment 1. Section 2. The Lake Oswego Code, Chapter 50 (Community Development Code) is hereby amended by deleting the text shown by strikethrough type and adding new text shown in double underlined type, in Attachment 2. (Sections or subsections within LOC Chapter 50 that are omitted in Attachment 2, or not marked for deletion or addition, are neither amended nor deleted by this Ordinance.) Section 3. Severability. The provisions of this ordinance are severable. If any portion of this ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this ordinance. EXHIBIT A-1 LU 18-0034 DRAFT: 03/07/19 [Note: Optional Sunset provision for Council consideration indicated in italics] Ordinance 2815 (LU 18-0034) EXHIBIT A-1/PAGE 2 OF 2 Section 4. [Sunset Provision. The provisions of this Ordinance, with the exception of the deletion of “bed & breakfast” from Parking Table 50.03.002-3, shall be null, void and of no further force and effect, and the Code amendments adopted by this ordinance, with the exception of the deletion of “bed & breakfast” from Parking Table 50.03.002-3, shall be repealed on __________, 20____.] [Section 5]. Effective Date. As provided in Section 35C of Chapter VII of the Lake Oswego Charter, this ordinance shall take effect on the thirtieth day following enactment. Enacted at the meeting of the City Council of the City of Lake Oswego held on the ** day of **, 2019. AYES: NOES: ABSTAIN: EXCUSED: ______________________________________ Kent Studebaker, Mayor Dated: _________________________ ATTEST: ___________________________________ Anne-Marie Simpson, City Recorder APPROVED AS TO FORM: ___________________________________ David Powell, City Attorney ATTACHMENT 1 Reserved for City Council Findings (not included) DRAFT: 03/07/19 LU 18-0034 (Ordinance 2815) ATTACHMENT 2/PAGE 1 OF 8 Amendments shown in bold underline text for additions and strikeouts for deletions. The commentary in text boxes is not part of the code and will be removed before ordinance enactment. LOC 50.10.003 DEFINITIONS // 2. Definition of Terms Short-Term Rental Lodging Comment: The following definition (option 1 or 2) sets STRs apart from Hotel, which is a use that is permitted in some commercial zones. Option 1: The offering of one or more bedrooms (and use of any common area) on a lot containing a single-family detached dwelling for transient residential purposes to serve paying guests for periods of 30 days or less. Comment: This definition would make STRs accessory to a Single-Family Residential use and limit STRs to detached single-family dwellings and accessory dwelling units. This would avoid conversion of apartment or condominium buildings into de facto hotels, i.e., where multifamily residential is allowed but hotels are not. In response to the online community survey on the short-term rental issue conducted by the City during June 2018, accessory dwelling units were most often cited as the dwelling type that would be appropriate for STR lodging. Option 2: The offering of one or more bedrooms (and use of any common area) within a dwelling for transient residential purposes to serve paying guests for periods of 30 days or less. Comment: This definition would allow for use of a portion of any dwelling unit (single- family detached, townhome, multifamily (apartment), or duplex, or an accessory dwelling unit for short-term rental lodging. See also LOC 50.03.002 Use Table, Commercial, Mixed Use, Industrial and Special Purpose Districts Use Table. ATTACHMENT 2 (Ordinance 2815) LU 18-0034 DRAFT: 03/07/19 LU 18-0034 (Ordinance 2815) ATTACHMENT 2/PAGE 2 OF 8 Hotel or Motel A building or group of buildings used for transient residential purposes containing rental units which are designed to be used, or which are used, rented or hired out for sleeping purposes, including associated retail uses within the hotel or motel intended to serve paying guests but not including short-term rental dwellings. Comment: The definition of Hotel/Motel (commercial use limited to commercial zones) is amended to set it apart from STR lodging, which this draft proposes to allow as an accessory use to a dwelling. Residence, Primary A dwelling where a person lives most of the time. At a given time, a person does not have more than one primary residence. For purposes of determining whether a dwelling is a primary residence, the City may consider whether the dwelling is the legal residence of an individual for purposes of voting, motor vehicle / driver licensing, income tax calculation, the time the person spent at the residence, and other such factors. Comment: Under the proposed short-term rental regulations [LOC 50.03.004.1.b.ii(7)(e), an individual who makes the dwelling their primary residence would have to be on the premises during specified hours when the unit is rented. Option: Could the “resident” be on site during the period of the STR rental, but have a primary residence elsewhere? Example: Owner has a house that they live in 7 months of the year elsewhere, live in the Lake Oswego dwelling 5 months, and rent the bedrooms out only while they are here. Consider in conjunction with Home Occupation standard ii(7)(d) below. DRAFT: 03/07/19 LU 18-0034 (Ordinance 2815) ATTACHMENT 2/PAGE 3 OF 8 LOC 50.03.002 USE TABLE 2. RESIDENTIAL USE TABLE TABLE 50.03.002-1: RESIDENTIAL DISTRICTS USE TABLE P = Permitted Use | Blank = Not Permitted | C = Conditional Use | A = Accessory Use [x] Table notes located at the end of the table Use Category Use Type Residential Use-Specific Standards R- 15 R- 10 R- 7.5 R-6 R-5 R- DD R-W R-3 [3] R-2 R-0 [3] [4] ACCESSORY USES Accessory Uses Community garden A A A A A A A A A A 50.03.003.6.j Home occupation A A A A A A A A A A 50.03.004.1.b.ii Short Term Rental Lodging [5] A/C A/C A/C A/C A/C A/C A/C A/C A/C A/C 50.03.004.1.b.ii ///// Accessory dwelling unit A A A A A A A A A 50.03.004.1.b.vi Notes: [1] Erected on pilings over the water of Oswego Lake. [2] No commercial activity allowed. [3] If lot has multiple zones, e.g., R-0/EC, see LOC 50.02.002.2.e. [4] Site-specific use limitations, see LOC 50.02.002.2.c. [5] May exceed floor area, single transient guest booking, number of overnight stays, number of transient guests, and on-site parking limitations of LOC 50.03.004.1.b.ii(5), and/or (7)(a, b, d, g) with Conditional Use Approval. Comment: This table allows for use of a portion of permitted dwelling unit in the zone as an accessory use (type of home occupation) and that meets the definition of Short Term Rental Lodging in residential zones. It also designates which Home Occupation standards in LOC 50.03.004.1.b.ii can be exceeded by Conditional Use Permit. DRAFT: 03/07/19 LU 18-0034 (Ordinance 2815) ATTACHMENT 2/PAGE 4 OF 8 Option 2 – Short Term Rental Lodging definition 3. COMMERCIAL, MIXED USE, INDUSTRIAL, AND SPECIAL PURPOSE DISTRICTS USE TABLE TABLE 50.03.002-2: COMMERCIAL, MIXED USE, INDUSTRIAL AND SPECIAL PURPOSE DISTRICTS USE TABLE P = Permitted Use | Blank = Not Permitted | C = Conditional Use | A = Accessory Use [x] Table notes located at the end of the table Use Category Use Type Commercial, Mixed Use, Industrial Special Purpose Use-Specific Standards NC [8], [9] GC HC [9] OC [8] EC [8] CR&D MC WLG [4] FMU [4], [7] I IP [5] CI PF [3] PNA OC RMU R- 2.5 RESIDENTIAL USES Household Living Residential use at R-5 density or greater P P [10] P P P P P [1] P [2] P WLG zones: 50.03.003.1.a; NC, GC and EC zones: 50.03.003.2 Dwelling, live-work P P [10] P P P P P //////// COMMERCIAL USES [6] 50.03.003.6 //////// Lodging Facilities Hotels or motels P [10] P P P P ////// ACCESSORY USES General standards: 50.03.004.1.a Accessory Uses //////// Short Term Rental Lodging, [11] A/C A/C A/C A/C A/C 50.03.004.1.b.ii [1] At a net site density of 2,500 sq. ft./lot area per unit area allowed in conjunction with office uses in the same building. ///// [7] FMU uses allowed only if the primary building on site was constructed after January 17, 2013. [8] If lot has multiple zones, e.g., R-0/EC, see LOC 50.02.002.2.e. [9] Site-specific use limitations, see LOC 50.02.002.2.c. //// [11] May exceed floor area, single transient guest booking, number of overnight stays, number of transient guests, and on-site parking limitations of LOC 50.03.004.1.b.ii(5), and/or (7)(a, b, d, g) with Conditional Use Approval. DRAFT: 03/07/19 LU 18-0034 (Ordinance 2815) ATTACHMENT 2/PAGE 5 OF 8 Comment: This table is in conjunction with Option 2 of the definition for Short Term Rental Lodging to allow for use of a portion of any dwelling unit (single-family detached, townhome, multifamily (apartment), or duplex, or an accessory dwelling unit for short- term rental lodging, as it would allow STR also in the those dwelling types that are located in commercial and mixed-use zones. It also designates which Home Occupation standards in LOC 50.03.004.1.b.ii can be exceeded by Conditional Use Permit. If Option 2 of the definition for Short Term Rental Lodging is not adopted, then the amendments in this table should not be adopted. LOC 50.03.004 ACCESSORY STRUCTURES AND USES 1. Accessory Uses // b. Standards for Specific Uses ii. Home Occupation A home occupation may be conducted where allowed by other provisions of this Code if the following conditions are continuously complied with: (1) The use does not alter the residential character of the neighborhood nor infringe upon the right of residents in the vicinity to the peaceful enjoyment of the neighborhood. (2) A current and valid business license is maintained. (3) No employeespersons other than family members who reside at the dwelling may be employed or otherwise work in the home occupation, except persons performing housekeeping, yard maintenance, or other domestic services for the dwelling where the short-term rental lodging occurs. Comment: This would allow employment of housekeeping, yard maintenance, or other domestic employees who may help maintain or operate a STR. (4) No outside storage of goods or materials other than vegetation. (5) No more than 25% of the aggregate floor area on the lot is devoted to nonresidential use; an accessory structure may be used provided the provisions of this subsection are met. DRAFT: 03/07/19 LU 18-0034 (Ordinance 2815) ATTACHMENT 2/PAGE 6 OF 8 Comment: Where a portion of a dwelling is to be used for STR lodging, floor area would be calculated based on the floor area of rented bedrooms, except where lodging is in an accessory dwelling, in which case the total floor area of the ADU would be counted. Where the STR would use more than 25% of aggregate floor area on the lot (a higher intensity use that increases the risk that residential character could be harmed) a conditional use permit is required. Floor Area is the gross building floor area excluding attics, vent shafts, courtyards, garages, allowable projections (e.g., bay window), decks, patios, uncovered exit stairs, and uncovered above-grade driveways. (LOC 50.10.003.2) (6) Marijuana facilities are prohibited. Comment: Short-term rental lodging in a dwelling is not a “marijuana facility,” so this standard would be automatically met. [Ord. 2689 bans all marijuana facilities in the City, and the voters approved continuation of the ban on Nov. 8, 2016.] (7) Short-term rentals shall meet the following additional standards: (a) No booking or guest stay shall occur for more than one transient lodging at a time on the lot, i.e., one guest may rent multiple bedrooms but two separate guests may not each rent a bedroom for use on the same lot at the same time. (b) The number of guest stays on the lot shall not exceed 120 nights in a calendar year. (c) The number of bedrooms rented at any one time shall not exceed the total number of bedrooms on the lot minus one. (d) The total number of transient guests in the dwelling shall not exceed 6, regardless of the number of bedrooms. (e) An individual who makes the dwelling their primary residence shall be on the premises during the hours of midnight to 6:00 AM when a short-term rental guest is present. Comment: To ensure that the “residential character” and “peaceful enjoyment of the neighborhood” are maintained, an individual who makes the property their primary residence shall be on the premises during specified hours when a renter is present. DRAFT: 03/07/19 LU 18-0034 (Ordinance 2815) ATTACHMENT 2/PAGE 7 OF 8 (f) No other commercial uses are allowed in conjunction with or accessory to a short-term rental. The short-term rental shall not be marketed for group events such as weddings, classes, or similar events for example. Comment: The intent of “no other commercial uses allowed” is to prohibit marketing of short-term rental properties for weddings and other large group gathering events, as this would be contrary to Home Occupation. The provision does not prohibit a second home occupation in the dwelling if (1) it is not associated with the short term rental lodging, e.g., consulting business; and (2) all other home occupation standards are met, e.g., the consulting business and the short term rental lodging collectively do not exceed the floor area limitation. The provision also does not prohibit someone from having a wedding ceremony in a short-term rental, but the unit cannot be marketed for weddings, parties, etc., or violate any other Home Occupation standard. (g) One on-site parking space shall be provided for up to every two bedrooms rented, in addition to required parking for the dwelling. The short term rental lodging parking areas shall be located to ensure they do not interfere with required parking or maneuvering areas for the dwelling. Comment: Required parking would be verified prior to issuance of a business license; or for applications requiring conditional use approval with the development review application. DRAFT: 03/07/19 LU 18-0034 (Ordinance 2815) ATTACHMENT 2/PAGE 8 OF 8 50.06.002 PARKING //// 2. STANDARDS FOR APPROVAL a. Vehicle Parking //// TABLE 50.06.002-3: MINIMUM OFF-STREET PARKING SPACE REQUIREMENTS Type of Use Parking Space Required [1] ///// (A) RESIDENTIAL 1. Single-family dwelling and duplex 1 space per dwelling unit 2. Accessory dwelling unit 1 space per unit (in addition to 1 space required for main dwelling unit). See LOC 50.03.004.1.b.vi(1)(a) for siting standard. /// 4. Rooming and boarding house; bed and breakfast 1 space per each guest room plus 1 for owner (B) COMMERCIAL RESIDENTIAL 1. Hotel or motel 1 space per unit //// Comment: The Bed and Breakfast parking standard is deleted to avoid confusing Bed and Breakfast with STR, Hotel, and Restaurant, each having its own parking standard. A STR host could provide meals to their guests only (not marketed as a restaurant), provided they meet County health/food handling requirements, as applicable, and not be a Hotel or Restaurant. The parking requirement for short-term rentals is proposed to be located within the Home Occupation standards, not in the parking table, as is done for other use-specific standards. Planning Commission Public Hearing ATTACHMENT A/PAGE 1 OF 1 LU 18-0034 April 22, 2019 LOC 50.07.005.3. 3. AUTHORIZATION TO PERMIT OR DENY CONDITIONAL USES a. An application for a conditional use shall be allowed if: i. The requirements of the zone are met; and ii. Special conditions found in LOC 50.03.003.3, 50.03.003.4.a through 50.03.003.4.c, 50.03.003.5.a, 50.03.003.5.c, 50.03.003.5.e through 50.03.003.5.f, 50.03.003.5.h, 50.03.003.6.a and 50.03.003.6.p.i, if applicable, are met; and iii. The site is physically capable of accommodating the proposed use; and iv. The functional characteristics of the proposed use are such that it can be made to be reasonably compatible with uses in its vicinity. b. In permitting a new conditional use, or the modification of an existing conditional use, the hearing body, or the City Manager in the case of a minor modification, may impose conditions which are suitable and necessary to assure compatibility of the proposed use with other uses in the vicinity. These conditions may include, but are not limited to: i. Limiting the manner in which the use is conducted, by restricting the time an activity may take place and by minimizing such environmental effects as noise, vibration, air pollution, glare and odor. ii. Establishing a special yard, setback, lot area or other lot dimension. iii. Limiting the height, size or location of a building or other structure. iv. Designating the size, number, location and design of vehicle access points. v. Increasing roadway widths, requiring street dedication, and/or requiring improvements within the street right-of-way. vi. Designating the size, location, screening, drainage, surfacing or other improvement of a parking area or truck loading area. vii. Limiting or otherwise designating the number, size, location, height and lighting of signs. viii. Limiting the location and intensity of outdoor lighting, requiring its shielding, or both. ix. Requiring berming, screening or landscaping and designating standards for its installation and maintenance. x. Designating the size, height, location and materials for fences. xi. Protecting and preserving existing trees, soils, vegetation, water resources, wildlife habitat or other significant natural resources. xii. On- and off-site public improvements. The number of residential units allowed by the provisions of this Code on a site may be reduced only if it is found that development to that number will result in a violation of the standards stated in LOC 50.07.005.3.a. Attachment A to Staff Report LU 18-0034 TO: Mayor Kent Studebaker and Council members CC: Scot Siegel, Director of Planning and Building Services FROM: Planning Commission SUBJECT: LU 18-0034 / Short Term Rentals Non-Land Use Issues DATE: March 7, 2019 The Planning Commission conducted 6 work sessions and one public hearing on code amendments for Short Term Rental Lodging (STR). Some issues were identified by the public or Commission members that are outside of the Planning Commission’s scope of review for land use impacts, but rather relate to the business operation of Short Term Rentals or to implementation of the code amendments. The Council may need an additional ordinance to address code amendments related to STR businesses outside of the Community Development Code, LOC Ch. 50. The Planning Commission discussed the potential applicability of short-term rental regulations to the rental platforms, which are frequently the marketers and booking services of short-term rentals. Because the proposal is for adoption of land use regulations, the regulations would apply to users of land (property owners, tenants, etc.) not marketers; hence, the Community Development Code standards would not apply to the short-term rental platforms. This memorandum identifies those non-land use issues for the Council’s concurrent consideration of the Planning Commission’s land use recommendations. If the City Council is interested in one or more of these code changes, staff would prepare a separate ordinance that the Council could then consider in a subsequent public hearing coinciding with final adoption of the Community Development Code amendments: 1. Prior to issuance of business license, the applicant shall notify neighbors of the short- term rental as a courtesy. This would require mail to owners of adjacent properties, or surrounding properties within a specified radius (e.g., 100-300 ft., if required by City Council). (Amend LOC Ch. 20 Licenses) DRAFT Page 2 of 4 2. Owner required to provide licensee contact information, and City to post short-term rental licensee contact information online. (Amend LOC Ch. 20 Licenses) 3. City to collect transient lodging taxes and require reporting of number of stays or bookings with transient lodging tax filings. (LOC Art. 24.02 Transient Lodging Taxes) 4. Owner to comply with building code, health, and fire and life safety requirements. This does not require separate action unless the City Council requires an inspection by a city official (e.g., Fire Marshal) prior to issuance of a business license, as property owners are already required to comply with the building code.1 (LOC Ch. 45 Building Code; LOC Art. 15.06 Fire Prevention Code) 5. City Council to review the Short Term Rental ordinance within three years of adoption. The ordinance would have to be reenacted for short-term rentals to be allowed after three years. (Include in STR Ordinance) 6. Limit the number of short-term rental business licenses, selected first-come-first-serve during 3-year trial period. Opportunities for additional licenses would open only as other licenses are not renewed. (Amend LOC Ch. 20 Licenses) 7. City Council to consider any advertising restrictions on owners or STR platforms (VRBO, AirBNB, etc) to enforce STR requirements, and any requirement directly or as a condition upon owner to operate an STR business to require data and advertising period disclosures. (Amend LOC Ch. 20 Licenses) 8. City Council to consider limitations on STR platforms to require STR operator to comply with city licensing requirements prior to advertising on platform. (Amend Ch. 20 Licenses, although this would apply to non-business license holders) 1 The building code establishes a minimum floor area for habitable rooms (e.g., bedrooms) of 70 square feet, minimum ceiling height of 7 feet, and egress. A sleeping room( at the time it is created or converted) must have a smoke detector that is interconnected with a smoke detector in an adjacent hallway, common area, or immediate vicinity of sleeping rooms and is located on a floor that has a functioning carbon monoxide alarm. Carbon monoxide alarms shall be located in each bedroom or within 15 feet outside of each bedroom door. Staff also researched the Landlord-Tenant provisions of ORS 91.262: “3) If adopted, an occupancy guideline for a dwelling unit shall not be more restrictive than two people per bedroom and shall be reasonable. Reasonableness shall be determined on a case-by-case basis. Factors to be considered in determining reasonableness include, but are not limited to: (a) The size of the bedrooms; (b) The overall size of the dwelling unit; and (c) Any discriminatory impact on those identified in ORS 659A.421. (4) As used in this section: (a) “Bedroom” means a habitable room that: (A) Is intended to be used primarily for sleeping purposes; (B) Contains at least 70 square feet; and (C) Is configured so as to take the need for a fire exit into account. (b) “Habitable room” means a space in a structure for living, sleeping, eating or cooking. Bathrooms, toilet compartments, closets, halls, storage or utility space and similar areas are not included.” [emphasis added] Page 3 of 4 9. Consider whether an additional fine amount or remedies are needed. Current: Where a use (or land-user) violates the Community Development Code, (1) the violation is a civil violation subject to a maximum $1000/day fine [LOC 50.09.003.1; LOC 13.02.020]; and (2) the City may revoke (and deny) their business license [LOC 20.02.080, .085; LOC 50.09.003.2] and seek an injunction (court order) to cease operations [LOC 50.09.003.2; ORS 30.315]. 10. Transient Lodging Tax (LOC Art. 24.02) Amendments to include obligation of Short Term Rental guests to pay, and operators of STRs to collect Transient Lodging Tax. The following amendments were identified for Council consideration: LOC 24.02.010 Definitions Transient means any person who exercises occupancy or is entitled to occupancy in a hotel or short-term rental lodging for a period of 30 consecutive calendar days or less, counting portions of calendar days as full days. The day a transient checks out of the hotel or short-term rental lodging shall not be included in determining the 30-day period if the transient is not charged rent for that day by the operator. Any such person so occupying space in a hotel or short-term rental lodging shall be deemed to be a transient until the period of 30 days has expired unless there is an agreement in writing between the operator and the occupant providing for a longer period of occupancy, or the tenancy actually extends more than 30 consecutive days. In determining whether a person is a transient, uninterrupted periods of time extending both prior and subsequent to the effective date of this article may be considered. A person who pays for lodging on a monthly basis, irrespective of the number of days in such month, shall not be deemed a transient. Occupancy means the use or possession or the right to the use or possession for lodging or sleeping purposes of any room or rooms in a hotel, bedroom in a short- term rental lodging, or space in a mobile home or trailer park. Operator means the person who is proprietor of the hotel or short-term rental lodging in any capacity. Where the operator of a hotel performs his or her functions through a managing agent of any type or character other than an employee, the managing agent shall also be deemed an operator of a hotel for the purposes of this article and shall have the same duties and liabilities as his or her principal. Compliance with the provisions of these sections by either the principal or managing agent shall be considered to be compliance by both. Rent means the consideration charged, whether or not received by the operator, for the occupancy of space in a hotel or short term rental lodging, valued in money, goods, labor, credits, property or other consideration valued in money, without any deduction. Page 4 of 4 LOC 24.02.020 Tax Imposed. 1. For the privilege of occupancy in any hotel or short-term rental lodging in the City, each transient shall pay a tax in the amount of 6% of the rent charged by the operator. The tax constitutes a debt owed by the transient to the City, which is extinguished only by payment by the operator to the City. The transient shall pay the tax to the operator of the hotel or short-term rental lodging at the time the rent is paid. The operator shall enter the tax on his or her records when rent is collected if the operator keeps his or her records on the cash accounting basis and when earned if the operator keeps his or her records on the accrual accounting basis. If rent is paid in installments, a proportionate share of the tax shall be paid by the transient to the operator with each installment. In all cases, the rent paid or charged for occupancy shall exclude the sale of any goods, services and commodities, other than the furnishing of rooms, accommodations, and space occupancy in mobile home parks or trailer parks. 2. The tax imposed by this article shall apply to all hotels and short term rental lodgings located within the corporate limits of the City