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HomeMy WebLinkAbout2017-11-21 OrdinanceDeferred to 12/5/17 Prepared by: Sarah Walz, Assistant Planner, 410 E. Washington Street, Iowa City, IA 52240; 319-356-5239 (REZ17- 00001) Ordinance No. An ordinance conditionally rezoning approximately 21.79 acre of property from Interim Development Multifamily (ID -RM) zone to Low Density Multifamily Residential (RM -12) zone located north and south of the intersection of South Gilbert Street and McCollister Boulevard. (REZ17-00001) Whereas, the applicant, Southgate Development Services, L.L.C., has requested a rezoning of property located north and south of the intersection of McCollister Boulevard and South Gilbert Street from Interim Development Multi -family (ID -RM) to Low Density Multi -family (RM -12); and Whereas, the property is located in the South Planning District; and Whereas, the South District Plan, an integral part of the Comprehensive Plan, sets forth goals and objectives for creating compact and connected neighborhoods integrating a diverse mix of housing types that are compatible in scale; and whereas Whereas, the South District Plan indicates that the area directly adjacent to the intersection of McCollister and Gilbert Streets is appropriate for multi -family development with surrounding land appropriate for Low to Medium Mixed Residential, which is intended for medium to high-density single family with opportunities for low-density multi -family uses; and Whereas, the applicant has proposed a concept for development with a mixture of townhome-style multi- family and a mix of 4-, 8-, and 12-plex buildings, preserving open space between the existing single-family neighborhood and the proposed development; and Whereas, the Planning and Zoning Commission has the reviewed the proposed rezoning and recommended that the City Council deny the application because it was incompatible with the Comprehensive Plan; and Whereas, Iowa Code §414.5 (2017) provides that the City of Iowa City may impose reasonable conditions on granting a rezoning request, over and above existing regulations, in order to satisfy public needs caused by the requested change; and Whereas, the owner, The Preserve @ Sandhill LLC, has agreed that the property shall be developed in accordance with the terms and conditions of the Conditional Zoning Agreement attached hereto to ensure appropriate development in this area of the city. Now, therefore, be it ordained by the City Council of the City of Iowa City, Iowa: Section I Approval. Subject to the Conditional Zoning Agreement attached hereto and incorporated herein, property described below is hereby reclassified from its current zoning designation of ID -RM to RM - 12: Outlot A and Outlot B of Sandhill Estates, Part Two, as recorded in Book 470, page 230. Section II. Zoning Map. The building official is hereby authorized and directed to change the zoning map of the City of Iowa City, Iowa, to conform to this amendment upon the final passage, approval and publication of the ordinance as approved by law. Section III. Conditional Zoning Agreement. The mayor is hereby authorized and directed to sign, and the City Clerk attest, the Conditional Zoning Agreement between the property owner(s) and the City, following passage and approval of this Ordinance. Section IV. Certification and Recording. Upon passage and approval of the Ordinance, the City Clerk is hereby authorized and directed to certify a copy of this ordinance, and record the same in the Office of the County Recorder, Johnson County, Iowa, at the Owner's expense, upon the final passage, approval and publication of this ordinance, as provided by law. Section V. Repealer. All ordinances and parts of ordinances in conflict with the provisions of this Ordinance are hereby repealed. Section VI. Severability. If any section, provision or part of the Ordinance shall be adjudged to be invalid or unconstitutional, such adjudication shall not affect the validity of the Ordinance as a whole or any section, provision or part thereof not adjudged invalid or unconstitutional. Section VII. Effective Date. This Ordinance shall be in effect after its final passage, approval and publication, as provided by law. Passed and approved this_ day of 20_ too— Passed oo Ordinance No. Page 2 Jim Throgmorton, MAYOR ATTEST: Kellie Fruehling, CITY CLERK pp oved by City Attorney's Office Prepared by: Sarah Walz, Associate Planner, 410 E. Washington, Iowa City, IA 52240 (319) 356-5239 (REZ17-00001) Conditional Zoning Agreement This agreement is made between the City of Iowa City, Iowa, a municipal corporation (hereinafter "City") and The Preserve @ Sandhill LLC (herein after "Owner"), and Southgate Development Services, L.L.C. (hereinafter "Applicant"). Whereas, Owner is the legal title holder of approximately 21,79 acres of property located north and south of the intersection of S. Gilbert Street and McCollister Boulevard; and Whereas, the Applicant has requested the rezoning of said property from Interim Development Multi -Family (ID -RM) to Low Density Multi -Family (RM -12); and Whereas, the South District Plan, an integral part of the Comprehensive Plan, sets forth goals and objectives for creating compact and connected neighborhoods integrating a diverse mix of housing types that are compatible in scale; and Whereas, the South District Plan indicates that the area directly adjacent to the intersection of McCollister and Gilbert Streets is appropriate for multi -family development with surrounding land appropriate for Low to Medium Mixed Residential, which is intended for medium to high-density single family with opportunities for low-density multi -family uses; and Whereas, the applicant has proposed a concept for development with a mixture of townhome-style multi -family and a mix of 4-, 8-, and 12-plex buildings, arranged in a walkable pattern of similar scale to single-family development with an area of open space between the existing single-family neighborhood and the proposed development; and Whereas, the City Council has determined that, with appropriate conditions regarding the overall layout and concept for development, building design and quality of construction, and the composition of one- and two-bedroom apartments, the requested zoning is consistent with the Comprehensive Plan; and Whereas, Iowa Code §414.5 (2017) provides that the City of Iowa City may impose reasonable conditions on granting a rezoning request, over and above existing regulations, in order to satisfy public needs caused by the requested change; and Whereas, the Owner acknowledges that certain conditions and restrictions are reasonable to ensure the development of the property is consistent with the Comprehensive Plan and the need for the development to complement the adjacent single-family neighborhood as well as the adjacent natural open spaces; and Whereas, the Owner agrees to develop this property in accordance with the terms and conditions of a Conditional Zoning Agreement. Now, therefore, in consideration of the mutual promises contained herein, the parties agree as follows: 1. The Preserve @ Sandhill LLC is the legal title holder of the property legally described as Outlots A and B, Sandhill Estates, Part One, as recorded in Book 47, Page 230. ppdadWagVsp 10 pslalea cm.d= 2. The Owner acknowledges that the City wishes to ensure conformance to the principles of the Comprehensive Plan and the South District plan. Further, the parties acknowledge that Iowa Code §414.5 (2017) provides that the City of Iowa City may impose reasonable conditions on granting a rezoning request, over and above the existing regulations, in order to satisfy public needs caused by the requested change. 3. In consideration of the City's rezoning the subject property, Owner agree(s) that development of the subject property will conform to all other requirements of the zoning chapter, as well as the following conditions: a. Substantial compliance with the approved concept plan with regard to street and block layout (including pedestrian street), arrangement of building types, location and size of open spaces, and sidewalk and trail connections. b. The pedestrian street must meet the standards for pedestrian streets provided in the Riverfront Crossings Form -Based Code. c. Townhouse and row house style multi -family buildings must comply with the attached single-family housing standards for entrances and design in the zoning code. d. Eaves and window and doorway trim will be required on all buildings according to the attached -single family housing standards. e. Building designs to be approved by the Design Review Committee for compliance with the conditions noted herewith. f. Buildings shall be constructed of durable, high-quality building materials according to table 2G-8 of the Riverfront Crossings Form -based Code. g. Landscaping must comply with recommended plant list provided by the provided by the Bur Oak Land Trust. h. Overall density of the development should not exceed: 115 units north of McCollister Blvd., at least 20% of which should be one -bedroom units—the remainder being 2 -bedroom units. 90 units south of McCollister Blvd., at least 25% of which should be one -bedroom units—the remainder being 2 -bedroom units. 4. The Owner and City acknowledge that the conditions contained herein are reasonable conditions to impose on the land under Iowa Code §414.5 (2017), and that said conditions satisfy public needs that are caused by the requested zoning change. 5. The Owner and City acknowledge that in the event the subject property is transferred, sold, redeveloped, or subdivided, all redevelopment will conform with the terms of this Conditional Zoning Agreement. 6. The parties acknowledge that this Conditional Zoning Agreement shall be deemed to be a covenant running with the land and with title to the land, and shall remain in full force and effect as a covenant with title to the land, unless or until released of record by the City of Iowa City. The parties further acknowledge that this agreement shall inure to the benefit of and bind all successors, representatives, and assigns of the parties. 7. The Owner acknowledge(s) that nothing in this Conditional Zoning Agreement shall be ppdadnVaOVsandhlil esWes=.doc 2 construed to relieve the Owner or Applicant from complying with all other applicable local, state, and federal regulations. B. The parties agree that this Conditional Zoning Agreement shall be incorporated by reference into the ordinance rezoning the subject property, and that upon adoption and publication of the ordinance, this agreement shall be recorded jn the Johnson County Recorder's Office at the Applicant's expense. Dated this 2�day of / y J10f15EV— , 20 1-t— City of Iowa City The Prese @ Sandhill LLC Jim Throgmorton, Mayor By: Attest: Kellie K. Fruehling, City Clerk pp ved by: n/zv/)7 City Attorney's Office City of Iowa City Acknowledgement: STATE OF IOWA ) ) ss: JOHNSON COUNTY ) By: This instrument was acknowledged before me on , 20_ by Jim Throgmorton and Kellie Fruehling as Mayor and City Clerk, respectively, of the City of Iowa City. Notary Public in and for the State of Iowa (Stamp or Seal) Title (and Rank) ,11iZ Preserve at Sandhill LLC,34. Acknowledgment: State ofww County of .6kyjon ppaadMagvsandhdt actama cm.doc 3 This r ord was acknowledged before me on ii • ZU • k 'I (Date) by r IO�6_.j_i j pUC (Name(s) of individual(s) as (type of authority, such as officer or trustee) of KS c\rr &, Saetab9 i tl l.l,C, (name of parry on behalf of whom record was executed). �es`tac� SUSAN J WEAVER o commission Number 799422 Notary Public in d for the State of Iowa My commission ExpIles (Stamp or Seaif Ow Februa 5 2o19 Title (and Rank) My commission expires:Z• 55 19 ppdedndagesendNll esNtes cmdm 4 M Prepared by: Bob Miklo, Senior Planner, 410 E. Washington Street, Iowa City, IA 52240; 319-356-5240 (REZ17-00014) Ordinance No. 17-4730 Ordinance conditionally rezoning 28.03 acres from Interim Development - Research Park (ID -RP) zone to High Density Single -Family Residential (RS -12) zone for 5.35 acres, Low Density Multifamily (RM -12) zone for 3.3 acres and Rural Residential (RR -1) zone for 19.38 acres for property located west of Camp Cardinal Road and south of Kennedy Parkway (REZ17-00014) WHEREAS, the applicant, The Crossings Development, LC, has requested a rezoning of approximately 28.03 acres of property located south of Kennedy Parkway west of Camp Cardinal Boulevard, from Interim - Development Research Park (ID -RP) zone to High Density Single -Family Residential (RS -12) zone for 5.35 acres, Low Density Multifamily (RM -12) zone for 3.3 acres and Rural Residential (RR -1) zone for 19.38 acres; and WHEREAS, the Comprehensive Plan indicates that this area is suitable for "conservation design" including a variety of residential housing types clustered away from environmentally sensitive areas; and WHEREAS, the Planning and Zoning Commission has reviewed the proposed RM -12 zoning and finds that it is consistent with the Comprehensive Plan, provided development meets certain conditions, including general compliance with the concept plan with townhouse -style multi -family dwellings with vehicular access to garages from a rear lane that is a maximum of 18 feet wide with green space and landscaping between the rear driveways to reduce impervious surface, improve stormwater drainage, and prevent speeding; and staff approval of a landscaping plan for the area along the rear drive and for screening the rear garages from public view in the northwest comer of the development, and development of a usable outdoor space with features such as an outdoor dining area and lawn for informal recreational use; these conditions being warranted to improve the aesthetics and livability for this cluster of higher density housing; and WHEREAS, the Planning and Zoning Commission has reviewed the proposed RS -12 zoning and RRA and finds that they are consistent with the Comprehensive Plan with an appropriate mix of single family and duplex units clustered away from the sensitive areas, which are proposed as outlots to preserve and protect these natural areas and provide for management of stormwater runoff; WHEREAS, Iowa Code §414.5 (2017) provides that the City of Iowa City may impose reasonable conditions on granting an applicant's rezoning request, over and above existing regulations, in order to satisfy public needs caused by the requested change; and WHEREAS, the applicant has agreed that the property shall be developed in accordance with the terms and conditions of the Conditional Zoning Agreement attached hereto to ensure appropriate development in this area of the city, NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA: SECTION I APPROVAL. Subject to the Conditional Zoning Agreement attached hereto and incorporated herein, property described below is hereby reclassified from its current zoning designation of ID -RP to the designations described in the legal descriptions below: RS -12: PART OF THE NORTHWEST QUARTER OF THE NORTHEAST QUARTER AND PART OF THE SOUTHWEST QUARTER OF THE NORTHEAST QUARTER OF SECTION 12, TOWNSHIP 79 NORTH, RANGE 7 WEST OF THE 5TH PRINCIPAL MERIDIAN, IOWA CITY, JOHNSON COUNTY, IOWA AND PART OF AUDITOR'S PARCEL NO. 2012052 AS RECORDED IN BOOK 56, PAGE 379 IN THE OFFICE OF THE JOHNSON COUNTY, IOWA RECORDER AND PART OF AUDITOR'S PARCEL NO. 2012053 AS RECORDER IN BOOK 56, PAGE 378 IN THE OFFICE OF THE JOHNSON COUNTY, IOWA RECORDER DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHERLY CORNER OF LOT 13, CARDINAL POINTE WEST - PART ONE AS RECORDED IN BOOK 60, PAGE 166 IN THE OFFICE OF THE JOHNSON COUNTY, IOWA RECORDER; THENCE N21°48'05"E 170.86 FEET ALONG THE SOUTHERLY LINE OF SAID CARDINAL POINTE WEST - PART ONE; THENCE N14030'51"E 68.49 FEET ALONG SAID Ordinance No. 17-4730 Page 2 SOUTHERLY LINE; THENCE N86042'03"E 215.79 FEET ALONG SAID SOUTHERLY LINE; THENCE SOUTHERLY 16.52 FEET ALONG THE ARC OF A 530.00 FOOT RADIUS CURVE, CONCAVE EASTERLY (CHORD BEARS S4°11'32"E 16.52 FEET); THENCE N84054'52"E 200.00 FEET ALONG SAID SOUTHERLY LINE TO THE SOUTHEAST CORNER OF LOT 4, SAID CARDINAL POINTE WEST - PART ONE; THENCE S16049'51"E 101.12 FEET; THENCE S25°47'11"E 65.05 FEET; THENCE S35°51'09"E 67.65 FEET; THENCE S38011'58"E 75.00 FEET; THENCE S37°42'38"E 79.04 FEET; THENCE S33019'25"E 84.78 FEET; THENCE S27059'01"E 48.60; THENCE S26056'21"E 53.53 FEET; THENCE S21030'05"E 86.33 FEET; THENCE S71013'03"W 160.00 FEET; THENCE NORTHWESTERLY 254.17 FEET ALONG THE ARC OF A 750.00 FOOT RADIUS CURVE, CONCAVE SOUTHWESTERLY (CHORD BEARS N28°29'27"W 252.95 FEET); THENCE N38011'58"W 163.23 FEET; THENCE NORTHWESTERLY 79.40 FEET ALONG THE ARC OF A 500.00 FOOT RADIUS CURVE, CONCAVE NORTHEASTERLY (CHORD BEARS N33°39'00"W 79.32 FEET); THENCE N29°06'03"W 53.30 FEET; THENCE NORTHWESTERLY 63.99 FEET ALONG THE ARC OF A 350.00 FOOT RADIUS CURVE, CONCAVE NORTHEASTERLY (CHORD BEARS N23°51'48"W 63.90 FEET); THENCE S71022'27"W 21.82 FEET; THENCE S74°25'54"W 50.56 FEET; THENCE SOUTHWESTERLY 274.18 FEET ALONG THE ARC OF A 150.00 FOOT RADIUS CURVE, CONCAVE SOUTHEASTERLY (CHORD BEARS S22004'03"W 237.57 FEET); THENCE SOUTHEASTERLY 102.07 FEET ALONG THE ARC OF A 740.00 FOOT RADIUS CURVE, CONCAVE NORTHEASTERLY (CHORD BEARS S34°14'53"E 101.98 FEET); THENCE S38011'58"E 160.70 FEET; THENCE SOUTHEASTERLY 190.68 FEET ALONG THE ARC OF A 510.00 FOOT RADIUS CURVE, CONCAVE SOUTHWESTERLY (CHORD BEARS S27°29'18"E 189.57 FEET); THENCE S73013'22"W 30.00 FEET; THENCE NORTHWESTERLY 34.84 FEET ALONG THE ARC OF A 480.00 FOOT RADIUS CURVE, CONCAVE SOUTHWESTERLY (CHORD BEARS N18051'24"W 34.84 FEET); THENCE S69014'02"W 120.00 FEET; THENCE N28055'22"W 99.33 FEET; THENCE N38008'39"W 103.46 FEET; THENCE N37°44'02"W 104.59 FEET; THENCE N30007'41"W 134.60 FEET; THENCE N69°27'55"E 120.00 FEET; THENCE NORTHERLY 81.44 FEET ALONG THE ARC OF A 180.00 FOOT RADIUS CURVE, CONCAVE EASTERLY (CHORD BEARS N7°34'23"W 80.75 FEET); THENCE N84036'40"W 137.15 FEET TO THE POINT OF BEGINNING. SAID PARCEL CONTAINS 5.35 ACRES, SUBJECT TO EASEMENT AND RESTRICTIONS OF RECORD. RM -12: PART OF THE NORTHWEST QUARTER OF THE NORTHEAST QUARTER AND PART OF THE SOUTHWEST QUARTER OF THE NORTHEAST QUARTER OF SECTION 12, TOWNSHIP 79 NORTH, RANGE 7 WEST OF THE 5TH PRINCIPAL MERIDIAN, IOWA CITY, JOHNSON COUNTY, IOWA AND PART OF AUDITOR'S PARCEL NO. 2012052 AS RECORDED IN BOOK 56, PAGE 379 IN THE OFFICE OF THE JOHNSON COUNTY, IOWA RECORDER AND PART OF AUDITOR'S PARCEL NO. 2012053 AS RECORDER IN BOOK 56, PAGE 378 IN THE OFFICE OF THE JOHNSON COUNTY, IOWA RECORDER DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHEAST CORNER OF LOT 4, CARDINAL POINTE WEST - PART ONE AS RECORDED IN BOOK 60, PAGE 166 IN THE OFFICE OF THE JOHNSON COUNTY, IOWA RECORDER; THENCE S16049'51"E 101.12 FEET; THENCE S25°47'11"E 65.05 FEET; THENCE S35051'09"E 67.65 FEET; THENCE S38011'58"E 75.00 FEET; THENCE S37°42'38"E 79.04 FEET; THENCE S33019'25"E 84.78 FEET; THENCE S27°59'01"E 84.78 FEET; THENCE S22°38'37"E 84.78 FEET; THENCE S70°01'35"W 130.00 FEET; THENCE SOUTHEASTERLY 16.22 FEET ALONG THE ARC OF A 780.00 FOOT RADIUS CURVE, CONCAVE SOUTHWESTERLY (CHORD BEARS S19022'41"E 16.22 FEET); THENCE S71°13'03"W 30.00 FEET TO THE POINT OF BEGINNING; THENCE NORTHWESTERLY 254.17 FEET ALONG THE ARC OF A 750.00 FOOT RADIUS CURVE, CONCAVE SOUTHWESTERLY (CHORD BEARS N28°29'27"W 252.95 FEET); THENCE N38°11'58"W 163.23 FEET; THENCE NORTHWESTERLY 79.40 FEET ALONG THE ARC OF A 500.00 FOOT RADIUS CURVE, CONCAVE NORTHEASTERLY (CHORD BEARS N33°39'00"W 79.32 FEET); THENCE N29006'03"W 53.30 FEET; THENCE NORTHWESTERLY 63.99 FEET ALONG THE ARC OF A 350.00 FOOT RADIUS CURVE, CONCAVE NORTHEASTERLY (CHORD BEARS N23°51'48"W 63.90 FEET); THENCE S71 *22'27'W 21.82 FEET; THENCE S74°25'54"W 50.56 FEET; THENCE SOUTHWESTERLY 274.18 FEET ALONG THE ARC OF A 150.00 FOOT RADIUS CURVE, CONCAVE SOUTHEASTERLY (CHORD BEARS S22°04'03"W 237.57 FEET); THENCE SOUTHEASTERLY 102.07 FEET ALONG THE ARC OF A 740.00 FOOT RADIUS CURVE, CONCAVE NORTHEASTERLY (CHORD BEARS S34014'53"E 101.98 FEET); THENCE S38°11'58"E 160.70 FEET; THENCE SOUTHEASTERLY 190.68 Ordinance No. 17-4730 Page 3 FEET ALONG THE ARC OF A 510.00 FOOT RADIUS CURVE, CONCAVE SOUTHWESTERLY (CHORD BEARS S27029'18"E 189.57 FEET); THENCE N73013'22"E 30.00 FEET; THENCE NORTHWESTERLY 16.14 FEET ALONG THE ARC OF A 540.00 FOOT RADIUS CURVE, CONCAVE WESTERLY (CHORD BEARS N17038'00"W 16.14 FEET); THENCE NORTHEASTERLY 29.63 FEET ALONG THE ARC OF A 20.00 FOOT RADIUS CURVE, CONCAVE SOUTHEASTERLY (CHORD BEARS N23"56'56"E 26.99 FEET); THENCE N66023'16"W 151.01 FEET; THENCE SOUTHEASTERLY 32.83 FEET ALONG THE ARC OF A 20.00 FOOT RADIUS CURVE, CONCAVE SOUTHWESTERLY (CHORD BEARS S66°35'34"E 29.26 FEET; THENCE SOUTHERLY 9.94 FEET ALONG THE ARC OF A 720.00 FOOT RADIUS CURVE. CONCAVE WESTERLY (CHORD BEARS Sl 9-10-40"E 9.94 FEET TO THE POINT OF BEGINNING. SAID PARCEL CONTAINS 3.30 ACRES, SUBJECT TO EASEMENT AND RESTRICTIONS OF RECORD. RR -1: PART OF THE NORTHWEST QUARTER AND PART OF THE NORTHEAST QUARTER OF SECTION 12, TOWNSHIP 79 NORTH, RANGE 7 WEST OF THE 5TH PRINCIPAL MERIDIAN, IOWA CITY, JOHNSON COUNTY, IOWA AND PART OF AUDITOR'S PARCEL NO. 2012052 AS RECORDED IN BOOK 56, PAGE 379 IN THE OFFICE OF THE JOHNSON COUNTY, IOWA RECORDER AND PART OF AUDITOR'S PARCEL NO. 2012053 AS RECORDED IN BOOK 56, PAGE 378 IN THE OFFICE OF THE JOHNSON COUNTY, IOWA RECORDER DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHERLY CORNER OF LOT 13, CARDINAL POINTE WEST - PART ONE AS RECORDED IN BOOK 60, PAGE 166 IN THE OFFICE OF THE JOHNSON COUNTY, IOWA RECORDER; THENCE S84°36'40"E 137.15 FEET; THENCE SOUTHERLY 81.44 FEET ALONG THE ARC OF A 180.00 FOOT RADIUS CURVE, CONCAVE EASTERLY (CHORD BEARS S7°34'23"E 80.75 FEET); THENCE S69°27'55"W 120.00 FEET; THENCE S30°07'41"E 132.68 FEET; THENCE N90000'00"W 424.72 FEET TO THE SOUTHERLY LINE OF SAID CARDINAL POINTE WEST - PART ONE; THENCE NO°00'00"E 107.13 FEET ALONG SAID SOUTHERLY LINE; THENCE N83°36'43"E 156.77 FEET ALONG SAID SOUTHERLY LINE; THENCE N53°13'37"E 209.13 FEET ALONG SAID SOUTHERLY LINE TO THE POINT OF BEGINNING. SAID PARCEL CONTAINS 1.68 ACRES, SUBJECT TO EASEMENTS AND RESTRICTIONS OF RECORD. AND PART OF THE NORTHEAST QUARTER OF SECTION 12, TOWNSHIP 79 NORTH, RANGE 7 WEST OF THE 5TH PRINCIPAL MERIDIAN, IOWA CITY, JOHNSON COUNTY, IOWA AND PART OF AUDITOR'S PARCEL NO. 2012052 AS RECORDED IN BOOK 56, PAGE 379 IN THE OFFICE OF THE JOHNSON COUNTY, IOWA RECORDER DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHEAST CORNER OF LOT 4, CARDINAL POINTE WEST - PART ONE AS RECORDED IN BOOK 60, PAGE 166 IN THE OFFICE OF THE JOHNSON COUNTY, IOWA RECORDER; THENCE NO°18'19"W 55.00 FEET ALONG THE EAST LINE OF SAID CARDINAL POINTE WEST - PART ONE; THENCE N9°15'18"E 55.00 FEET ALONG SAID EAST LINE; THENCE N21010'50"E 132.95 FEET ALONG SAID EAST LINE TO THE SOUTHERLY LINE OF AUDITOR'S PARCEL 2014116 AS RECORDED IN BOOK 59, PAGE 93 IN THE OFFICE OF THE JOHNSON COUNTY, IOWA RECORDER; THENCE S64°26'20"E 461.81 FEET ALONG SAID SOUTHERLY LINE; THENCE SOUTHEASTERLY 193.61 FEET ALONG SAID SOUTHERLY LINE AND THE ARC OF A 383.00 FOOT RADIUS CURVE, CONCAVE NORTHEASTERLY (CHORD BEARS S78°55'14"E 191.55 FEET); THENCE N86°35'51"E 21.34 FEET ALONG SAID SOUTHERLY LINE; THENCE SOUTHEASTERLY 62.86 FEET ALONG THE WESTERLY RIGHT OF WAY OF CAMP CARDINAL BOULEVARD AND THE ARC OF A 40.00 FOOT RADIUS, CONCAVE SOUTHWESTERLY (CHORD BEARS S48020'33"E 56.59 FEET); THENCE SOUTHERLY 171.74 FEET ALONG SAID WESTERLY RIGHT OF WAY AND THE ARC OF A 2450.00 FOOT RADIUS CURVE, CONCAVE WESTERLY (CHORD BEARS S1°06'49"E 171.70 FEET); THENCE SO°53'41"W 227.14 FEET ALONG SAID WESTERLY RIGHT OF WAY TO THE SOUTH LINE OF THE NORTHWEST QUARTER OF THE NORTHEAST QUARTER OF SAID SECTION 12; THENCE S89"04'32"W 463.31 FEET ALONG SAID SOUTH LINE; THENCE N27°59'01"W 48.59 FEET; THENCE N33°19'25"W 84.78 FEET; THENCE N37042'38"W 79.04 FEET; THENCE N38011'58"W 75.00 FEET; THENCE N35°51'09"W 67.65 FEET; THENCE N25047'11"W 65.05 FEET; THENCE N16°49'51"W 101.12 FEET TO THE POINT OF Ordinance No. 17-4730 Page 4 BEGINNING. SAID PARCEL CONTAINS 7.71 ACRES, SUBJECT TO EASEMENTS AND RESTRICTIONS OF RECORD. AND: OUTLOT D, CARDINAL POINTE WEST - PART ONE, IOWA CITY, JOHNSON COUNTY, IOWA AND AS RECORDED IN BOOK 60, PAGE 166 IN THE OFFICE OF THE JOHNSON COUNTY, IOWA RECORDER. SAID PARCEL CONTAINS 9.99 ACRES, SUBJECT TO EASEMENTS AND RESTRICTIONS OF RECORD. SECTION Il. ZONING MAP. The Building Inspector is hereby authorized and directed to change the zoning map of the City of Iowa City, Iowa, to conform to this amendment upon the final passage, approval and publication of this ordinance by law. SECTION III. CONDITIONAL ZONING AGREEMENT. The mayor is hereby authorized and directed to sign, and the City Clerk attest, the Conditional Zoning Agreement between the property owner(s) and the City, following passage and approval of this Ordinance. SECTION IV. CERTIFICATION AND RECORDING. Upon passage and approval of the Ordinance, the City Clerk is hereby authorized and directed to certify a copy of this ordinance and the associated conditional zoning agreement and to record the same, at the office of the County Recorder of Johnson County, Iowa, at the owner's expense, all as provided by law. SECTION V. REPEALER. All ordinances and parts of ordinances in conflict with the provisions of this Ordinance are hereby repealed. SECTION VI. SEVERABILITY. If any section, provision or part of the Ordinance shall be adjudged to be invalid or unconstitutional, such adjudication shall not affect the validity of the Ordinance as a whole or any section, provision or part thereof not adjudged invalid or unconstitutional. SECTION VII. EFFECTIVE DATE. This Ordinance shall be in effect after its final passage, approval and publication, as provided by law. Passed and approved this 21st day of November , 2017. �i /l Approved by: ATTESL '2 Gov f l �izP.co 6t ' � '2 oc ITY CLERK � City Attorney's Office izir7 Ordinance No. 17-4710 Page 5 It was moved by Dickens and seconded by Mims that the Ordinance as read be adopted, and upon roll call there were: AYES: NAYS: x ABSENT: ABSTAIN: Botchway Cole Dickens Mims Taylor Thomas Throgmorton First Consideration 10/17/2017 Voteforpassage: AYES:Cole, Dickens, Mims, Taylor,Thomas, Throgmorton, Botchway. NAYS: None. ABSENT: None. Second Consideration 11/06/2017 Vote for passage: AYES: Mims, Taylor, Thomas, Throgmorton, Botchway, Cole. NAYS: None. ABSENT: Dickens Date published 11/30/2017 Prepared by: Bob Miklo, Senior Planner, 410 E. Washington, Iowa City, IA 52240 (319) 356-5240 (REZ17-00014) Conditional Zoning Agreement This agreement is made between the City of Iowa City, Iowa, a municipal corporation (hereinafter "City") and The Crossings Development, LC (hereinafter "Owner"). Whereas, Owner is the legal title holder of approximately 28.03 acres of property located west of Camp Cardinal Boulevard and south of Kennedy Parkway; and Whereas, the Owner has requested the rezoning of said property from Interim - Development Research Park (ID -RP) zone to High Density Single -Family Residential (RS -12) zone for 5.35 acres, Low Density Multifamily (RM -12) zone for 3.3 acres and Rural Residential (RR -1) zone for 19.38 acres; and Whereas, the Planning and Zoning Commission has determined that, with appropriate conditions warranted to improve the aesthetics and livability for this cluster of higher density housing, the requested zoning is consistent with the Comprehensive Plan; and Whereas, Iowa Code §414.5 (2017) provides that the City of Iowa City may impose reasonable conditions on granting a rezoning request, over and above existing regulations, in order to satisfy public needs caused by the requested change; and Whereas, the Owner acknowledges that certain conditions and restrictions are reasonable to ensure the development of the property is consistent with the Comprehensive Plan and the need for to improve the aesthetics and livability for higher density housing; and Whereas, the Owner agrees to develop this property in accordance with the terms and conditions of a Conditional Zoning Agreement. Now, therefore, in consideration of the mutual promises contained herein, the parties agree as follows: 1. The Crossings Development, L.C. is the legal title holder of the property legally described as: PART OF THE NORTHWEST QUARTER OF THE NORTHEAST QUARTER AND PART OF THE SOUTHWEST QUARTER OF THE NORTHEAST QUARTER OF SECTION 12, TOWNSHIP 79 NORTH, RANGE 7 WEST OF THE 5TH PRINCIPAL MERIDIAN, IOWA CITY, JOHNSON COUNTY, IOWA AND PART OF AUDITOR'S PARCEL NO. 2012052 AS RECORDED IN BOOK 56, PAGE 379 IN THE OFFICE OF THE JOHNSON COUNTY, IOWA RECORDER AND PART OF AUDITOR'S PARCEL NO. 2012053 AS RECORDER IN BOOK 56, PAGE 378 IN THE OFFICE OF THE JOHNSON COUNTY, IOWA RECORDER DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHERLY CORNER OF LOT 13, CARDINAL POINTE WEST - PART ONE AS RECORDED IN BOOK 60, PAGE 166 IN THE OFFICE OF THE JOHNSON COUNTY, IOWA RECORDER; THENCE N21 °48'05"E 170.86 FEET ALONG THE SOUTHERLY LINE OF SAID CARDINAL POINTE WEST - PART ONE; THENCE N14030'51"E 68.49 FEET ALONG SAID SOUTHERLY LINE; THENCE N86042'03"E 215.79 FEET ALONG SAID SOUTHERLY LINE; THENCE SOUTHERLY ppdadm/agVwnditwal zoning agreement thecrossingdev 16.52 FEET ALONG THE ARC OF A 530.00 FOOT RADIUS CURVE, CONCAVE EASTERLY (CHORD BEARS S4°11'32"E 16.52 FEET); THENCE N84054'52"E 200.00 FEET ALONG SAID SOUTHERLY LINE TO THE SOUTHEAST CORNER OF LOT 4, SAID CARDINAL POINTE WEST - PART ONE; THENCE S16°49'51"E 101.12 FEET; THENCE S25047'1 1"E 65.05 FEET; THENCE S35051'09"E 67.65 FEET; THENCE S3801 1'58"E 75.00 FEET; THENCE S37°42'38"E 79.04 FEET; THENCE S33019'25"E 84.78 FEET; THENCE S27059'01"E 48.60; THENCE S26°56'21"E 53.53 FEET; THENCE S21030'05"E 86.33 FEET; THENCE S71013'03"W 160.00 FEET; THENCE NORTHWESTERLY 254.17 FEET ALONG THE ARC OF A 750.00 FOOT RADIUS CURVE, CONCAVE SOUTHWESTERLY (CHORD BEARS N28°29'27"W 252.95 FEET); THENCE N38°11'58"W 163.23 FEET; THENCE NORTHWESTERLY 79.40 FEET ALONG THE ARC OF A 500.00 FOOT RADIUS CURVE, CONCAVE NORTHEASTERLY (CHORD BEARS N33°39'00"W 79.32 FEET); THENCE N29006'03"W 53.30 FEET; THENCE NORTHWESTERLY 63.99 FEET ALONG THE ARC OF A 350.00 FOOT RADIUS CURVE, CONCAVE NORTHEASTERLY (CHORD BEARS N23051'48"W 63.90 FEET); THENCE S71°22'27"W 21.82 FEET; THENCE S74025'54"W 50.56 FEET; THENCE SOUTHWESTERLY 274.18 FEET ALONG THE ARC OF A 150.00 FOOT RADIUS CURVE, CONCAVE SOUTHEASTERLY (CHORD BEARS S22004'03"W 237.57 FEET); THENCE SOUTHEASTERLY 102.07 FEET ALONG THE ARC OF A 740.00 FOOT RADIUS CURVE, CONCAVE NORTHEASTERLY (CHORD BEARS S34014'53"E 101.98 FEET); THENCE S38011'58"E 160.70 FEET; THENCE SOUTHEASTERLY 190.68 FEET ALONG THE ARC OF A 510.00 FOOT RADIUS CURVE, CONCAVE SOUTHWESTERLY (CHORD BEARS S27°29'18"E 189.57 FEET); THENCE S73013'22"W 30.00 FEET; THENCE NORTHWESTERLY 34.84 FEET ALONG THE ARC OF A 480.00 FOOT RADIUS CURVE, CONCAVE SOUTHWESTERLY (CHORD BEARS N18051'24"W 34.84 FEET); THENCE S69°14'02"W 120.00 FEET; THENCE N28055'22"W 99.33 FEET; THENCE N38008'39"W 103.46 FEET; THENCE N37°44'02"W 104.59 FEET; THENCE N30007'41"W 134.60 FEET; THENCE N69°27'55"E 120.00 FEET; THENCE NORTHERLY 81.44 FEET ALONG THE ARC OF A 180.00 FOOT RADIUS CURVE, CONCAVE EASTERLY (CHORD BEARS N7034'23"W 80.75 FEET); THENCE N84°36'40"W 137.15 FEET TO THE POINT OF BEGINNING. SAID PARCEL CONTAINS 5.35 ACRES, SUBJECT TO EASEMENT AND RESTRICTIONS OF RECORD. F�I-91 PART OF THE NORTHWEST QUARTER OF THE NORTHEAST QUARTER AND PART OF THE SOUTHWEST QUARTER OF THE NORTHEAST QUARTER OF SECTION 12, TOWNSHIP 79 NORTH, RANGE 7 WEST OF THE 5TH PRINCIPAL MERIDIAN, IOWA CITY, JOHNSON COUNTY, IOWA AND PART OF AUDITOR'S PARCEL NO. 2012052 AS RECORDED IN BOOK 56, PAGE 379 IN THE OFFICE OF THE JOHNSON COUNTY, IOWA RECORDER AND PART OF AUDITOR'S PARCEL NO. 2012053 AS RECORDER IN BOOK 56, PAGE 378 IN THE OFFICE OF THE JOHNSON COUNTY, IOWA RECORDER DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHEAST CORNER OF LOT 4, CARDINAL POINTE WEST - PART ONE AS RECORDED IN BOOK 60, PAGE 166 IN THE OFFICE OF THE JOHNSON COUNTY, IOWA RECORDER; THENCE S16°49'51"E 101.12 FEET; THENCE S25047'11"E 65.05 FEET; THENCE S35°51'09"E 67.65 FEET; THENCE S3801 1'58"E 75.00 FEET; THENCE S37042'38"E 79.04 FEET; THENCE S33019'25"E 84.78 FEET; THENCE S27059'01"E 84.78 FEET; THENCE S22°38'37"E 84.78 FEET; THENCE S70001'35"W 130.00 FEET; THENCE SOUTHEASTERLY 16.22 FEET ALONG THE ARC OF A 780.00 FOOT RADIUS CURVE, CONCAVE SOUTHWESTERLY (CHORD BEARS S19022'41"E 16.22 FEET); THENCE S71°13'03"W 30.00 FEET TO THE POINT OF BEGINNING; THENCE NORTHWESTERLY 254.17 FEET ALONG THE ARC OF A 750.00 ppdadmlagUwnditional zoning agreement theaossingdev FOOT RADIUS CURVE, CONCAVE SOUTHWESTERLY (CHORD BEARS N28°29'27"W 252.95 FEET); THENCE N38011'58"W 163.23 FEET; THENCE NORTHWESTERLY 79.40 FEET ALONG THE ARC OF A 500.00 FOOT RADIUS CURVE, CONCAVE NORTHEASTERLY (CHORD BEARS N33°39'00"W 79.32 FEET); THENCE N29°06'03"W 53.30 FEET; THENCE NORTHWESTERLY 63.99 FEET ALONG THE ARC OF A 350.00 FOOT RADIUS CURVE, CONCAVE NORTHEASTERLY (CHORD BEARS N23°51'48"W 63.90 FEET); THENCE S71°22'27"W 21.82 FEET; THENCE S74°25'54"W 50.56 FEET; THENCE SOUTHWESTERLY 274.18 FEET ALONG THE ARC OF A 150.00 FOOT RADIUS CURVE, CONCAVE SOUTHEASTERLY (CHORD BEARS S22°04'03"W 237.57 FEET); THENCE SOUTHEASTERLY 102.07 FEET ALONG THE ARC OF A 740.00 FOOT RADIUS CURVE, CONCAVE NORTHEASTERLY (CHORD BEARS S34°14'53"E 101.98 FEET); THENCE S38011'58"E 160.70 FEET; THENCE SOUTHEASTERLY 190.68 FEET ALONG THE ARC OF A 510.00 FOOT RADIUS CURVE, CONCAVE SOUTHWESTERLY (CHORD BEARS S27°29'18"E 189.57 FEET); THENCE N73°13'22"E 30.00 FEET; THENCE NORTHWESTERLY 16.14 FEET ALONG THE ARC OF A 540.00 FOOT RADIUS CURVE, CONCAVE WESTERLY (CHORD BEARS N17°38'00"W 16.14 FEET); THENCE NORTHEASTERLY 29.63 FEET ALONG THE ARC OF A 20.00 FOOT RADIUS CURVE, CONCAVE SOUTHEASTERLY (CHORD BEARS N23°56'56"E 26.99 FEET); THENCE N66023'16"W 151.01 FEET; THENCE SOUTHEASTERLY 32.83 FEET ALONG THE ARC OF A 20.00 FOOT RADIUS CURVE, CONCAVE SOUTHWESTERLY (CHORD BEARS S66035'34"E 29.26 FEET; THENCE SOUTHERLY 9.94 FEET ALONG THE ARC OF A 720.00 FOOT RADIUS CURVE. CONCAVE WESTERLY (CHORD BEARS S19°10'40"E 9.94 FEET TO THE POINT OF BEGINNING. SAID PARCEL CONTAINS 3.30 ACRES, SUBJECT TO EASEMENT AND RESTRICTIONS OF RECORD. I_1Eq1191 PART OF THE NORTHWEST QUARTER AND PART OF THE NORTHEAST QUARTER OF SECTION 12, TOWNSHIP 79 NORTH, RANGE 7 WEST OF THE 5TH PRINCIPAL MERIDIAN, IOWA CITY, JOHNSON COUNTY, IOWA AND PART OF AUDITOR'S PARCEL NO. 2012052 AS RECORDED IN BOOK 56, PAGE 379 IN THE OFFICE OF THE JOHNSON COUNTY, IOWA RECORDER AND PART OF AUDITOR'S PARCEL NO. 2012053 AS RECORDED IN BOOK 56, PAGE 378 IN THE OFFICE OF THE JOHNSON COUNTY, IOWA RECORDER DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHERLY CORNER OF LOT 13, CARDINAL POINTE WEST - PART ONE AS RECORDED IN BOOK 60, PAGE 166 IN THE OFFICE OF THE JOHNSON COUNTY, IOWA RECORDER; THENCE S84°36'40"E 137.15 FEET; THENCE SOUTHERLY 81.44 FEET ALONG THE ARC OF A 180.00 FOOT RADIUS CURVE, CONCAVE EASTERLY (CHORD BEARS S7°34'23"E 80.75 FEET); THENCE S69°27'55"W 120.00 FEET; THENCE S30007'41"E 132.68 FEET; THENCE N90°00'00"W 424.72 FEET TO THE SOUTHERLY LINE OF SAID CARDINAL POINTE WEST - PART ONE; THENCE NO°00'00"E 107.13 FEET ALONG SAID SOUTHERLY LINE; THENCE N83036'43"E 156.77 FEET ALONG SAID SOUTHERLY LINE; THENCE N53°13'37"E 209.13 FEET ALONG SAID SOUTHERLY LINE TO THE POINT OF BEGINNING. SAID PARCEL CONTAINS 1.68 ACRES, SUBJECT TO EASEMENTS AND RESTRICTIONS OF RECORD. AND PART OF THE NORTHEAST QUARTER OF SECTION 12, TOWNSHIP 79 NORTH, RANGE 7 WEST OF THE 5TH PRINCIPAL MERIDIAN, IOWA CITY, JOHNSON COUNTY, IOWA AND PART OF AUDITOR'S PARCEL NO. 2012052 AS RECORDED IN BOOK 56, ppdadm/agVmnditicnal zoning agreement thecrossingdev 3 PAGE 379 IN THE OFFICE OF THE JOHNSON COUNTY, IOWA RECORDER DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHEAST CORNER OF LOT 4, CARDINAL POINTE WEST - PART ONE AS RECORDED IN BOOK 60, PAGE 166 IN THE OFFICE OF THE JOHNSON COUNTY, IOWA RECORDER; THENCE N0018'19"W 55.00 FEET ALONG THE EAST LINE OF SAID CARDINAL POINTE WEST - PART ONE; THENCE N9015'18"E 55.00 FEET ALONG SAID EAST LINE; THENCE N21°10'50"E 132.95 FEET ALONG SAID EAST LINE TO THE SOUTHERLY LINE OF AUDITOR'S PARCEL 2014116 AS RECORDED IN BOOK 59, PAGE 93 IN THE OFFICE OF THE JOHNSON COUNTY, IOWA RECORDER; THENCE S64°26'20"E 461.81 FEET ALONG SAID SOUTHERLY LINE; THENCE SOUTHEASTERLY 193.61 FEET ALONG SAID SOUTHERLY LINE AND THE ARC OF A 383.00 FOOT RADIUS CURVE, CONCAVE NORTHEASTERLY (CHORD BEARS S78°55'14"E 191.55 FEET); THENCE N86035'51"E 21.34 FEET ALONG SAID SOUTHERLY LINE; THENCE SOUTHEASTERLY 62.86 FEET ALONG THE WESTERLY RIGHT OF WAY OF CAMP CARDINAL BOULEVARD AND THE ARC OF A 40.00 FOOT RADIUS, CONCAVE SOUTHWESTERLY (CHORD BEARS S48020'33"E 56.59 FEET); THENCE SOUTHERLY 171.74 FEET ALONG SAID WESTERLY RIGHT OF WAY AND THE ARC OF A 2450.00 FOOT RADIUS CURVE, CONCAVE WESTERLY (CHORD BEARS S1 '06-49"E 171.70 FEET); THENCE S0053,41 "W 227.14 FEET ALONG SAID WESTERLY RIGHT OF WAY TO THE SOUTH LINE OF THE NORTHWEST QUARTER OF THE NORTHEAST QUARTER OF SAID SECTION 12; THENCE S89004'32"W 463.31 FEET ALONG SAID SOUTH LINE; THENCE N27059'01"W 48.59 FEET; THENCE N33°19'25"W 84.78 FEET; THENCE N37°42'38"W 79.04 FEET; THENCE N38011'58"W 75.00 FEET; THENCE N35°51'09"W 67.65 FEET; THENCE N25047'11"W 65.05 FEET; THENCE N16°49'51"W 101.12 FEET TO THE POINT OF BEGINNING. SAID PARCEL CONTAINS 7.71 ACRES, SUBJECT TO EASEMENTS AND RESTRICTIONS OF RECORD. AND OUTLOT D, CARDINAL POINTE WEST - PART ONE, IOWA CITY, JOHNSON COUNTY, IOWA AND AS RECORDED IN BOOK 60, PAGE 166 IN THE OFFICE OF THE JOHNSON COUNTY, IOWA RECORDER. SAID PARCEL CONTAINS 9.99 ACRES, SUBJECT TO EASEMENTS AND RESTRICTIONS OF RECORD. 2. The Owner acknowledges that the City wishes to ensure conformance to the principles of the Comprehensive Plan and the Clear Creek Master Plan and Camp Cardinal Road Memorandum of Understanding. Further, the parties acknowledge that Iowa Code §414.5 (2017) provides that the City of Iowa City may impose reasonable conditions on granting a rezoning request, over and above the existing regulations, in order to satisfy public needs caused by the requested change. 3. In consideration of the City's rezoning the subject property, Owner agrees that development of the subject property hereby rezoned RM -12 will conform to all other requirements of the zoning chapter, as well as the following conditions: a. Development shall generally comply with the concept plan for the area shown as "Lot 32" on the Rezoning, Preliminary Plat and Sensitive Areas Site Plan, Cardinal Pointe West -Part 2 (attached), including townhouse -style multi -family dwellings with vehicular access to garages from a rear lane that is a maximum of 18 feet wide with green space and landscaping between the rear driveways to reduce impervious surface and improve stormwater drainage. ppdadodagVconEdional zoning agreement thovossingdov 4 b. Prior to approval of any site plan, Owner shall obtain Staff approval of a landscaping plan for the area along the rear private drive and for screening the rear garages from public view along Dubs Drive. c. Development shall include a usable outdoor space with features such as an outdoor dining area and lawn for informal recreational use. 4. The Owner and City acknowledge that the conditions contained herein are reasonable conditions to impose on the land under Iowa Code §414.5 (2017), and that said conditions satisfy public needs that are caused by the requested zoning change. 5. The Owner and City acknowledge that in the event the subject property is transferred, sold, redeveloped, or subdivided, all redevelopment will conform with the terms of this Conditional Zoning Agreement. 6. The parties acknowledge that this Conditional Zoning Agreement shall be deemed to be a covenant running with the land and with title to the land, and shall remain in full force and effect as a covenant with title to the land, unless or until released of record by the City of Iowa City. The parties further acknowledge that this agreement shall inure to the benefit of and bind all successors, representatives, and assigns of the parties. The Owner acknowledges that nothing in this Conditional Zoning Agreement shall be construed to relieve the Owner or Applicant from complying with all other applicable local, state, and federal regulations. 8. The parties agree that this Conditional Zoning Agreement shall be incorporated by reference into the ordinance rezoning the subject property, and that upon adoption and publication of the ordinance, this agreement shall be recorded in the Johnson County Recorder's Office at the Owner's expense. Dated this 21st day of November City of Iowa City Ja es A. Throgmorton, Mi5yor Attest: K lie Fruehling, Oity Clerk Approved by: City Attorney's Office �vl fZ t 7 ppdadMagVconditional zoning agreement tnemassingdev 2017. The Cros gs Development, L. . By: f 4 M City Of Iowa City Acknowledgement: STATE OF IOWA ) ) ss: JOHNSON COUNTY ) This instrument was acknowledged before me on Os /' K))0Qn\bP f" , 20LI by Jim Throgmorton and Kellie Fruehling, Mayor and City Clerk, respectively, of the City of Iowa City Notary Public in and for thL'State of Iowa (Stamp or Seal) e~ p CHRISTINE OL EY r i Canmission Number 608232 Title (and Rank) * own * oi 5 mo m Admin sec, The Crossings Development, LC Acknowledgment: State of County of o This record was acknowledged before me on f)4t� p&Z I7** &i(Date) by 'Savry (Name(s) of individual(s) as IMn (type of authority, such as officer or trustee) of TkgCssi LCL (name of party on behalf of whom record was execute . Notary Public in and for the State of Iowa (Stamp or Seal) WM Title (and Rank) My commission expires: S Il (g /2.O?A ppoaomlagVconoitional zoning agreement thecrossingoev 6 REZONING, PRELIMINARY PLAT AND SENSITIVE AREA SITE PLAN FOR CARDINAL POINTE WEST -PART 2 IN THE CITY OF IOWA CITY, JOHNSON COUNTY, IOWA UTILITY AND EMERGENCY TELEPHONE NUMBERS eaa un..anwr � wwcwn �Ns.nrw+r m mnAm¢xT eno-Auwux�w�w.'!� unuTr umlo-Laosnxc Im- -Iwa _4m -4r era 6a _W— Omouman,m m m _ _ m fl e�w,im 4 a A � e w e IOWA ONE -CALL m� ple}-m-sle (n.ym-sn° u me>-essz-sao alerm_!Iw mean-n>e (lmrms-1,e. (ne}-ve-nm unurr mms+o-PRaroun OWNER vn�mr. USE m.rm 0 A n c... w.a.. wmrr Guam OWNER vn�mr. USE OWNN�ERS ATTORNEY ZONING r A n PUNT mallo OWNER vn�mr. USE OWNN�ERS ATTORNEY ZONING r i n NIM15ua0 LOATE: WI ..a.vwnRAtllmm: y�Egy LOCATION MAP 6 1'•1. NOTES RE PR(NWED IUPROH11FN15 NaN1m IN TIE4 DM M HAW FfTN omwm N ACLm... TME .T OP 1. aT, ..Nm,N. am. STN.....IJ& AND D. 11 PIANS SCALE CORRECTLY WHEN PLOTTED ON ]21t4'PAPER SHEET INDEX M r-vmm APPLICANT M �CONTACT PERSON DIMENSIONAL STANDARDS IRS -12) DIMENSIONAL STANDARDS IRM -121 AREA CALCULATIONS OWNER vn�mr. USE OWNN�ERS ATTORNEY ZONING r REZONING LEGAL DESCRIPTIONS DIMENSIONAL STANDARDS IRS -12) DIMENSIONAL STANDARDS IRM -121 AREA CALCULATIONS 's rxal 'uxnw n avlvi .u"' 0'2d s3unun v roan 31a 'un Vi w un ru Ni .r =ve®ter �/ / w lnd AbYNIXn3tld tlN1 —d 316 r3tltlr3ALL5N35 0 NN1ndrALONIXn3Ntl hNE.Mtl SV33XIOX 9llVN V �OI f NlI1WC �_ I SIWI I \ ryy( I =_ ___________ _ /gym,•• . a n -w euro awns �i �Zl�l'Pi zr-a • n-ze ssu'u a 1 • R �X� T-�-e Ir p 3Yl.zn sa ero a. s is �ena 5 isX�ol 'Jtl0C0 ii weamaenwe 'Jtl0C0 To: Planning and Zoning Commission Item: REZ17-00014/SUB17-00015 Cardinal Point West Part 2 GENERAL INFORMATION: STAFF REPORT Prepared by: Bob Miklo Date: September 21, 2017 11-21-17 6b Applicant: The Crossings Development LC 755 Mormon Trek Blvd Iowa City, IA 52246 319-337-4195 jentler@SouthGateCo.com Contact: Brian Vogel, P.E. Hall & Hall Engineers, Inc 1860 Boyson Road Hiawatha, IA 52233 319-362-9548 brian@halleng.com Requested Action: Rezone from ID -RP to RS -12 (5.35 acres), RM -12 (3.3 acres), RR -1 (19.38 acres) and approval of a preliminary plat Purpose: To allow the development of Cardinal Point West Part Two, a 28.03 acre 16 -lot residential subdivision that will include multi -family, duplexti and single family lots Location: West of Camp Cardinal Road and South of Kennedy Parkway Size: 28.03 acres Existing Land Use and Zoning: Undeveloped, Interim Development Research Park (ID -RP) Surrounding Land Use and Zoning: North: Residential (RS -5) South: Undeveloped (ID -RP) East: Residential (OPD -8) and Mercy Clinic (CO -1) West: Residential (RS -5) and Undeveloped (ID -RP) Comprehensive Plan: Conservation Design — Clear Creak Master Plan Neighborhood Open Space District: Clear Creek File Date: August 17, 2017 45 Day Limitation Period: October 1, 2017 BACKGROUND INFORMATION: The applicant, The Crossing Development, LC, is requesting approval for the rezoning of 28.03 acres of land from Interim Development - Research Park (ID -RP) zone to High Density Single - Family Residential (RS -12) for 5.35 acres, Low Density Multifamily (RM -12) for 3.3 Acres and Rural Residential (RR -1) for 19.38 acres. The applicant is also requesting approval of the preliminary plat of Cardinal Point West — Part 2, a residential development with 9 single-family lots, 6 duplex lots and 1 multifamily lot with 33 dwelling units. The plan also includes three outlots. Outlots F and G are for open space to be maintained by a homeowners association. Outlot H is reserved for future development. The applicant has also submitted a concept plan showing how Preston Lane will continue to the south to connect to Camp Cardinal Boulevard, and the potential for single-family, townhouse and multi -family development to the south of the current proposal. The area shown on the concept plan will require additional rezoning and subdivision approvals and is subject to change. Approval of Cardinal Pointe West — Part 2 does not include approval of the concept plan. This and the surrounding areas were annexed into the city between 1969 and 1972. Since 1983 the area has been zone Interim Development — Research Park (ID -RP) to reflect possible development of an office park along Highway 218. In May 2002, the City Council signed a Memorandum of Understanding for the Clear Creak Master Plan including a concept that envisioned a "conservation -type" development including residential and commercial uses in the area surrounding Camp Cardinal Boulevard. Good Neighbor Policy: The application indicates that the applicant plans to follow the Good Neighbor Policy, but no details have been submitted and no neighborhood meeting has been held. ANALYSIS Current Zoning: Based on the previous Comprehensive Plan, the area is currently zoned as Interim Development - Research Park (ID -RP). The text of the 1997 Comprehensive Plan, however, recognized that with the establishment of Oakdale Campus north of Interstate 80, the possibility of additional development of office and research park type uses in this area may not be realistic. The Plan also recognized the topographical and infrastructural limitations of the area, and therefore, supported development with a mix of uses, such as low density residential and office commercial uses. The Plan also supported clustered development that would result in pedestrian friendly neighborhoods with minimal disturbance of the sensitive areas. The current ID -RP zoning allows only agricultural uses by right so a rezoning is necessary to allow development of this property. Proposed Zoning: The Rural Residential Zone (RR -1) is intended to provide a rural residential character for areas in the city that are not projected to have the utilities necessary for urban development in the foreseeable future or for areas that have sensitive environmental features that preclude development at urban densities. This is an appropriate designation for Outlots F and G, which contain steep slopes and woodlands that limit development potential. The High Density Single -Family Residential Zone (RS -12) is intended to provide for development of single-family dwellings, duplexes and attached housing units at a higher density than in other single family zones. Because this district represents a relatively high density for single-family development, dwellings should be in close proximity to City services and facilities, especially parks, schools and recreational facilities. Special attention should be given to site design to ensure the development of quality neighborhoods. The RS -12 zone allows for single family lots with a minimum lot area of 5,000 square feet, and a minimum lot width of 45 feet. Duplexes are allowed on lots with a minimum lot area of 6,000 square feet and lot width of 55 feet. All lots within the proposed subdivision meet the minimum requirements of the RS -12 zone. Although lots 33 to 41 are sufficient in size for duplexes, the applicant indicates that they will be reserved for single family dwellings. Lots 42 to 47 are intended for duplexes. The purpose of the Low Density Multi -Family Residential Zone (RM -12), which is proposed for Lot 32, is to provide for the development of high density, single-family housing and low density, multi -family housing. This zone is intended to provide a diverse variety of housing options in neighborhoods throughout the city. Careful attention to site and building design is important to ensure that the various housing types in any one location are compatible with one another. The applicant is proposing 33 townhouse -style units in 7 buildings containing 4 to 5 dwellings each. A private rear lane or alley is proposed for vehicular access. As noted above, the RM -12 Zone calls for attention to site and building design to help produce a pleasant residential environment. To assure that the entire area along the rear lane between the dwellings units is not paved, staff recommends that the final site plan include a landscaping plan with plantings appropriate for the area between the driveways. Staff notes that the proposed 21 foot wide private drive is wider than necessary (standard alley pavement is only 16 feet wide). The extra width results in excess paving and may invite speeding. Staff recommends that the private rear lane be a maximum of 18 feet wide. Reduction of paving will help minimize stormwater runoff and improve the aesthetics of the area. On the north side of Lot 32, townhouse units back toward Dubs Drive. The applicant has agreed to screen the west side of the garages with evergreen trees. An area of open space will be available for use of the residents of the townhouses on lot 32. Comprehensive Plan: This property is located within the Northwest Planning District. IC2030: The Comprehensive Plan Update identifies this area as suitable for "Conservation Design" and refers to the Clear Creek Master Plan (a more detailed district plan has not been prepared for the Northwest District). The Clear Creek Master Plan lays out a general development concept with possible street layouts, and shows areas for residential, commercial and office development. In staffs view the requested rezoning and subdivision design conforms with the conservation design envisioned in the Comprehensive Plan for this area. It also conforms with the housing policy of ensuring a mix of housing types within each neighborhood (page 27) and the land use policy to guide development as away from environmental sensitive areas, such as woodlands and steep slopes (page 23). Subdivision Design: The applicant is proposing a residential development with a mix of RS -12 lots (approximately 10,000 to 25,000 square feet) and one RM -12 lot (approximately 2 acres) for townhouse -style multifamily buildings. Two outlots containing woodlands and steep slopes will be set aside for open space to be owned and maintained by a homeowners association. Outlot H is reserved for future development. The concept plan shows extension of Dubs Drive and Preston Lane onto Outlot H where Preston Lane will intersect with Camp Cardinal Boulevard in a future phase of Cardinal Pointe West. The subdivision code requires that block lengths range from 300 feet to a maximum of 600 feet. Longer block lengths may be considered where topographic conditions, water features or Is existing development prevent shorter block lengths, although midblock pedestrian connections may be required. To the west of Preston Lane, blocks will range from approximately 475 feet to approximately 540 feet in length in conformance with the subdivision regulations. Due to the presence of steep wooded ravines located on Outlots G and H, no street intersections are proposed east of Preston Lane. As a result the block length will well exceed 600 feet normally required by the subdivision code. In staff's view the proposed design helps to minimize the disturbance of the wooded ravines located on the property and complies with the Comprehensive Plan's emphasis on conservation design for this area. Environmentally Sensitive Areas: The property contains steep and critical slopes and woodlands. The Sensitive Areas Site Plan indicates that approximately 22.5% of the woodlands will be removed. Approximately 21% of the steep slopes, and 23% of the critical slopes will be graded. The majority of this grading will occur on lots 42 and 43 and on Outlot F for the purpose of providing stormwater management and suitable residential lots. The disturbance is less than 35% of the critical slopes and 50% of the woodlands and therefore does not require Planning and Zoning review. Traffic implications and pedestrian facilities: Preston Lane will extend from Kennedy Parkway on the north to Camp Cardinal Boulevard on the south, a distance of approximately 2000 feet with limited intersecting streets. Based on residents request for traffic calming on similar streets, staff recommends that traffic calming be designed into Preston Lane. To address this concern the street will be 26 feet wide beginning at the north intersection with Dubs Drive. At the intersections, neck downs will narrow the pavement to 22 feet. Staff believes this will help prevent excessive speeds on this residential street. Neighborhood parkland: A subdivision of this size is required to dedicate 30,056 square feet of neighborhood open space or pay fees in lieu of. The Parks and Recreation Department has indicated that fees should be collected in lieu of dedication of land. This requirement will need to be addressed in the legal papers at time of final plat approval. The open space calculations include the land area of Outlots F and G. Open space fees for Outlot H will be calculated when it is developed in the future. Storm water management: The stormwater management basin located in Outlot D of Cardinal Pointe West Part 1 has been designed to provide stormwater management for this new phase of the development. The City Engineer has confirmed that the existing basin is adequate to serve the stormwater requirements for Part 2. Infrastructure fees: This subdivision is subject to the water main extension fee for $435 per acre and sanitary sewer tap on fee of $570.98 per acre. Payment towards the cost of constructing Camp Cardinal Boulevard will also need to be addressed at the time of final plat approval. STAFF RECOMMENDATION: Staff recommends approval of REZ17-000141SUB17-00015 a rezoning of 26.03 acres of land from Interim Development - Research Park (ID -RP) zone to High Density Single -Family Residential (RS -12) for 5.35 acres, Low Density Multifamily (RM -12) for 3.3 Acres and Rural Residential (RR -1) for 19.38 acres, and the preliminary plat of Cardinal Point West — Part 2, a residential subdivision with 9 single-family lots, 6 duplex lots and 1 multifamily lot with 33 dwelling units, subject to general compliance with the concept for lot 32 with the private drive being limited to a maximum of 18 feet wide, and staff approval of a landscape plan for lot 32 including provision of usable outdoor space with features such as an outdoor dining area and lawn for informal recreational use. ATTACHMENTS: 1. Location Map 2. Zoning Exhibit 3. Preliminary Plat Approved by: ppdadmin4sVrepldocumenQ 5 M John Yapp, Development Sdrvices Coordinator, Department of Neighborhood and Development Services REZ1 7-00014/SUB 17-00015 KWest of Camp Cardinal Rd and South of ennedy Pkwy CITY OF IOWA Cl p *• v G FF�x Q KENNEDY ,o,Q�F - •�, y � ,� Y �: Jo �e� Z. �o� UJaU t D Q� va y� v eC ,,,��8 �q y � SNPGBPRK�GS icy An application submitted by g The Crossings J� ' c a Development, LC, to rezone 28.03 acres v ¢ z' <,�� of land from Interim Development -Research v J� r✓� Park (ID -RP) zone to High Density Single -Family .� Residential (RS -12) for 5.35 acres, Low Density Multifamily (RM -12) for 3.3 acres, and Rural r cy/y esidential. (RR -1) for 19.38 acres and for approval 9 " the preliminary plat of Cardinal Point West Part 2, 6 -lot subdivision that will include 1 multifamily lot, s6 2�8 cWgy PMT OF ME NORMREST WARDER OF M FOREMAST WINNER AND PMT CE ME SWMEEST WINTER Of M xpMASJ wMRR OF SECOM IZ, FSPRO IP MM, NAME ] REST IF M SM PRMnPAL MONDAY! roWA OTT, "MON COURTS. IOAA AM PART OF PAN. M. SPI ASALOYDN' OF M JMNSM OWNTG IOWA RECORDER AND SPART OF ALOODS5 PARCEL EOw ITI AS RECORDS I SOON SOF. AP GC J]5 IN M OFFICE OF ME JQMSW COUNTY, IOWA MOMIDER DESCRIBED AS FW10W5: E SWMAST CORTEX OF LOT I. WDENAt PONAR NEST F WE iMNMW COUNTY. 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'i.mnc` o T, qS o nc111.1 SF , 3 I�.ssF�sF \ tmL vs �11LGFN j \ 4 \ WDP .F \� \ L OpA. sly s MIDfO CIIv14R.T'IPNHf \ 11 L 1 _ I 1 I 1 IQ,1I XILLd MILL ENGINEEpG IXL pE$ONIN4 PR..:NRXY PUL PNO SEN.TW IKEA 9R PIAN FM yyQ LMNIHPL POINTE KST — PNT 3 PMMIN4PY PEAT mE nry of lawn a.Y, ana* F. CAFT r 4 ano wnoE x p4.0 f CITY — JOHNSON LwNn. lows 8 MINUTES PRELIMINARY PLAN14ING AND ZONING COMMISSION SEPTEMBER 21, 2017 — 7:00 PM — FORMAL MEETING EMMA J. HARVAT HALL, CITY HALL MEMBERS PRESENT: Carolyn Dyer, Ann Freerks, Mike Hensch, Phoebe Martin, Max Parsons, Mark Signs, Jodie Theobald MEMBERS ABSENT: STAFF PRESENT: Sara Hektoen, Karen Howard OTHERS PRESENT: Jerry Waddilove RECOMMENDATIONS TO CITY COUNCIL: By a vote of 7-0 the Commission recommends approval of REZ17-00014/SUB17-00015 rezoning of 28.03 acres of land from Interim Development - Research Park (ID -RP) zone to High Density Single -Family Residential (RS -12) for 5.35 acres, Low Density Multifamily (RM -12) for 3.3 Acres and Rural Residential (RR -1) for 19.38 acres, and the preliminary plat of Cardinal Point West - Part 2, a residential subdivision with 9 single-family lots, 6 duplex lots and 1 multifamily lot with 33 dwelling units, subject to general compliance with the concept for lot 32 with the private drive being limited to a maximum of 18 feet wide, and staff approval of a landscape plan for lot 32 including provision of usable outdoor space with features such as an outdoor dining area and lawn for informal recreational use. CALL TO ORDER: Freerks called the meeting to order at 7:00 PM. PUBLIC DISCUSSION OF ANY ITEM NOT ON THE AGENDA: None. REZONING/DEVELOPMENT ITEM (REZ17-00014/SUB17-00015)• Discussion of an application submitted by The Crossing Development, LC is for a rezoning of 28.03 acres of land from Interim Development - Research Park (ID -RP) zone to High Density Single -Family Residential (RS -12) zone for 5.35 acres, Low Density Multifamily (RM -12) zone for 3.3 acres and Rural Residential (RR -1) zone for 19.38 acres and a preliminary plat of Cardinal Point West - Part 2, a residential subdivision with 9 single-family lots, 6 duplex lots and 1 multifamily lot with 33 dwelling units located west of Camp Cardinal Road and south of Kennedy Parkway. Howard presented the staff report by first showing images of the area. This area was annexed into the City between 1969 and 1972 and has been zoned Interim Development - Research Park (ID -RP) but subsequent development of the Oakdale Research Park reduced market demand for office park development. Therefore in May 2002, the City Council signed a Memorandum of Understanding for the Clear Creak Master Plan including a concept that envisioned a "conservation -type" development including residential and commercial uses in the Planning and Zoning Commission September 21, 2017 — Formal Meeting Page 2 of 11 area surrounding Camp Cardinal Boulevard. The City has not yet completed a specific District Plan for this area so the Master Plan is what they look to for guidance. The current zoning of the property is ID -RP and various other zoning designations are proposed. The Rural Residential Zone (RR -1) is intended to provide a rural residential character for areas in the city that are not projected to have the utilities necessary for urban development in the foreseeable future or for areas that have sensitive environmental features that preclude development at urban densities. This is an appropriate designation for Outlets F and G, which contain steep slopes and woodlands that limit development potential. The High Density Single -Family Residential Zone (RS -12) is intended to provide for development of single-family dwellings, duplexes and attached housing units at a higher density than in other single family zones. The RS -12 zone allows for single family lots with a minimum lot area of 5,000 square feet, and a minimum lot width of 45 feet. Duplexes are allowed on lots with a minimum lot area of 6,000 square feet and lot width of 55 feet. All lots within the proposed subdivision meet the minimum requirements of the RS -12 zone. Although lots 33 to 41 are sufficient in size for duplexes, the applicant indicates that they will be reserved for single family dwellings. Lots 42 to 47 are intended for duplexes. The purpose of the Low Density Multi - Family Residential Zone (RM -12), which is proposed for Lot 32, is to provide for the development of high density, single-family housing and low density, multi -family housing. In this case, townhouse -style multi -family buildings are proposed. Howard pointed out that the RM -12 Zone calls for attention to site and building design to help produce a pleasant residential environment for multi -family living. To prevent excessive pavement along the rear lane, improve stormwater drainage and provide some minimal space for trees or landscaping, staff recommends that the rear lane include plantings between the driveways. The site plan should include a landscaping plan with plantings appropriate for the area between the driveways. Staff also notes that the proposed 21 foot wide private drive is wider than necessary (standard alley pavement is only 16 feet wide). The extra width results in excess paving and may invite speeding. Staff recommends that the private rear lane be a maximum of 18 feet wide. Reduction of paving will help minimize stormwater runoff and improve the aesthetics of the area. Howard showed photos of other similar developments and the landscaping between driveways. Also on the north side of Lot 32, the garage -side of the townhouse units would be visible from Dubs Drive. The applicant has agreed to screen the west side of the garages with evergreen trees and design the area as usable open space available for the residents of the townhouses on lot 32. Options include seating areas, covered picnic areas, or small playground area. With regards to the Comprehensive Plan it is covered by the Clear Creek Master Plan and in staffs view the requested rezoning and subdivision design conforms to the conservation design envisioned in the Comprehensive Plan for this area. It also conforms to the housing policy of ensuring a mix of housing types within each neighborhood and the land use policy to keep development away from environmentally sensitive areas, such as woodlands and steep slopes. Howard pointed out the sensitive areas on the site plan with the steep slopes and noted that with the exception of grading proposed on two of the lots to facilitate stormwater management and to create suitable building areas, there will be minimal disturbance of the slopes. The developer is also preserving a significant amount of the woodlands as well. These disturbances are below the threshold allowed in the sensitive areas ordinance. Howard stated noted that outlots G and F will be conservation areas maintained by a Planning and Zoning Commission September 21, 2017 — Formal Meeting Page 3 of 11 Homeowner's Association, and outlot H will be reserved for future development. The concept plan shows extension of Dubs Drive and Preston Lane onto Outlet H where Preston Lane will intersect with Camp Cardinal Boulevard in a future phase of Cardinal Pointe West. Also due to the sensitive areas there are no street intersections in area proposed east of Preston Lane and therefore the block length will exceed the 600 feet maximum in the subdivision code. In staffs view the proposed design helps to minimize the disturbance of the wooded ravines located on the property, so the longer blocks are warranted to reduce disturbance of sensitive areas. However, due to the long blocks staff recommends that traffic calming be designed into Preston Lane. To address this concern the street will be 26 feet wide beginning at the north intersection with Dubs Drive. At the intersections, neck downs will narrow the pavement to 22 feet. Staff believes this will help reduce speeds on this residential street. Howard noted that the neighborhood open space required for the subdivision is 30,056 square feet of land dedication or fees paid in lieu. The Parks and Recreation Department has indicated that fees should be collected in lieu of dedication of land. This requirement will need to be addressed in the legal papers at time of final plat approval. The stormwater management basin located in Outlet D of Cardinal Pointe West Part 1 has been designed to provide stormwater management for this new phase of the development. The City Engineer has confirmed that the existing basin is adequate to serve the stormwater requirements for Part 2. Staff recommends approval of REZ17-00014/SUB17-00015 rezoning of 28.03 acres of land from Interim Development - Research Park (ID -RP) zone to High Density Single -Family Residential (RS -12) for 5.35 acres, Low Density Multifamily (RM -12) for 3.3 Acres and Rural Residential (RR -1) for 19.38 acres, and the preliminary plat of Cardinal Point West - Part 2, a residential subdivision with 9 single-family lots, 6 duplex lots and 1 multifamily lot with 33 dwelling units, subject to general compliance with the concept for lot 32 with the private drive being limited to a maximum of 18 feet wide, and staff approval of a landscape plan for lot 32 including provision of usable outdoor space with features such as an outdoor dining area and lawn for informal recreational use. Theobald asked if there was a sidewalk across the street from this development to connect this development to Camp Cardinal Boulevard. Howard noted this development would go through connecting sidewalks in Cardinal Point West - Part 1 to access Camp Cardinal Boulevard. Theobald then asked if there were plans for a cross walk across Camp Cardinal Boulevard from this whole area. Howard is not aware of specific plans for a cross walk, but something of that nature would be assessed based on need over time. Freerks asked about the outlots with the wooded areas and since they will be maintained by the Homeowners Association if there was any plan for protection that needed to be put in place. Howard said in the final plat stage in the subdivision papers it will be noted as conservation area and provisions should be included in the subdividers agreement to preserve that area. Freerks opened the public hearing. Jerry Waddilove (President and CEO, Southgate Companies) stated they are looking to provide a residential subdivision to the City with a mix of housing types as it is consistent with their concept plan when they did Cardinal Point West - Part 1. Regarding the private drive for the townhomes they felt 21 feet gave homeowners ample space to drive through the alley and Planning and Zoning Commission September 21, 2017 — Formal Meeting Page 4 of 11 navigate driveways. To have the alley be 18 feet would be typical to the average driveway and their thought was to make it a little bit wider so people can get through there. He doesn't agree with the thought there would be a lot of speeding through the alley, it won't act as a "cut - through" to anywhere. Waddilove stated regarding the sidewalks it is the plan to connect to the south side of Kennedy Parkway and there is already a sidewalk on the Coralville side of Kennedy Parkway. He added they would be in favor of some type of traffic control at the corner of Kennedy Parkway and Camp Cardinal Boulevard especially since there is a school there and likely will have children crossing. Hensch asked about the private road and when there is future development to the south would the private road extend into the future development. Waddilove confirmed it would. Hensch feels at that time he can see people then using the private alley as direct access to Camp Cardinal Road and feels there should at least be a traffic calming device installed to slow people down. Waddilove agreed and noted their preference would be to keep the alley at a wider width and add in a calming device. Freerks still feels the 18 foot alley is best as children will be riding bikes in the alleyway, and also it could prevent parking along the alleyway. Signs agreed with the parking challenge, if there is the extra space and people park along there it will be harder for others to get through. Dyer asked how many parking spaces will be in each driveway for the townhomes. Waddilove said there should be room for 4 vehicles, two in the garage and two in the driveway. Freerks closed the public hearing. Hensch moved to recommend approval of REZ17-00014/SUB17-00015 rezoning of 28.03 acres of land from Interim Development - Research Park (ID -RP) zone to High Density Single -Family Residential (RS -12) for 5.35 acres, Low Density Multifamily (RM -12) for 3.3 Acres and Rural Residential (RR -1) for 19.38 acres, and the. preliminary plat of Cardinal Point West - Part 2, a residential subdivision with 9 single-family lots, 6 duplex lots and 1 multifamily lot with 33 dwelling units, subject to general compliance with the concept for lot 32 with the private drive being limited to a maximum of 18 feet wide, and staff approval of a landscape plan for lot 32 including provision of usable outdoor space with features such as an outdoor dining area and lawn for informal recreational use. Parsons seconded the motion. Freerks acknowledged it is nice to see a development with mixed uses and is in a nice area. Signs added that the single family and duplexes will be backing up to the natural areas which will make it even more attractive to buyers. Theobald agreed but noted her concern is with the sidewalks and hopes that there really are sidewalks on both sides otherwise it will be difficult for pedestrian travel. Hektoen said that usually it is a public improvement requirement that is required before a building permit is approved. Howard noted however it is along the outlot so the issue will need to be clarified. Freerks noted that this is something that can be addressed by City Staff at the final plat stage. Howard confirmed that Subdivision Code requires sidewalks along all lots unless waived, so it should be addressed in the legal papers and on the final plat. A vote was taken and the motion carried 7-0 (c Prepared by: Sylvia Bochner, Planning Intern, 410 E Washington St, Iowa City, IA 52240 ORDINANCE NO. 17-4731 AN ORDINANCE AMENDING TITLE 14, CHAPTER 2, ARTICLE G., RIVERFRONT CROSSINGS FORM -BASED DEVELOPMENT STANDARDS, TO ALLOW MINOR ADJUSTMENTS TO UPPER FLOOR STEPBACK REQUIREMENTS AND THE MINIMUM BUILDING HEIGHT STANDARD. WHEREAS, the City encourages development and redevelopment in the Riverfront Crossings District, in part, by allowing higher residential densities, taller block -scale buildings and lower parking requirements. However, to ensure that new development results in neighborhoods that are safe, walkable, and that create a high-quality environment for residential living, there are form -based standards that help break up the mass and scale of larger, bulkier buildings; WHEREAS, the Riverfront Crossings Form -Based Code requires fagade stepbacks above a certain building height with the intent of breaking up the vertical mass of taller buildings and reducing the perceived building height from a pedestrian perspective; and WHEREAS, the stepback requirement is of particular importance in certain instances, such as for buildings granted bonus height where the building will be taller than other buildings in the vicinity, for buildings located on streets where compatibility with the historic or lower -scale neighborhood context is of particular concern; for buildings located on narrower street rights-of- way; and in cases where preservation of view corridors is of community importance; and WHEREAS, if there are unique characteristics of the site that warrant an adjustment or waiver of the upper floor fagade stepback, alternative design techniques may be effective in meeting the intent of the stepback standard; and WHEREAS, in the absence of an upper floor fagade stepback, there are a variety of ways to visually distinguish the upper floor facade from the lower floors in ways that help break up the vertical mass of the building; and WHEREAS, allowing administrative review and approval of requests for reductions or waivers of the upper floor stepback requirement in cases where it is warranted will streamline the approval process without compromising building quality and livability, provided an alternative design is proposed that equally or better meets the intent of the stepback standard; and WHEREAS, the Riverfront Crossings Form -Based Code for the South Downtown Subdistrict also has a minimum building height of two stories to create a street wall that provides a comfortable sense of enclosure for pedestrians; and WHEREAS, allowing administrative review and approval of requests for a waiver of the minimum height would be appropriate to allow for a second story pedestrian courtyard in a mid - block location, provided a second story screen wall is constructed that is designed to provide the intended sense of enclosure for pedestrians at the street level; and WHEREAS, the Planning and Zoning Commission has reviewed the proposed zoning amendments and recommends approval. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA: SECTION I. The Code of Ordinances of the City of Iowa City, Iowa is hereby amended as follows: A. Delete 14 -2G -7H, Minor Adjustments, paragraph 1 and subparagraph g, and replace with the following: Ordinance No. 17-4731 Page 2 1. The FBC Committee may approve deviations from the building placement and parking, loading, and service area placement standards set forth in Section 14- 2G-3, Subdistrict Standards. Standards greater or lesser than the ranges allowed may be approved in the following circumstances, provided the approval criteria listed below are met: g. Approval Criteria: (1) There are unique characteristics of the site or neighboring properties that lend to alternative design approaches or that make it difficult or infeasible to meet the requirements; and (2) The proposed placement of the building, parking, and service areas fit the characteristics of the site and the surrounding neighborhood, are consistent with the intent of the standard being modified and the goals of the Downtown & Riverfront Crossings Master Plan or Central District Plan, as applicable, and will not detract from or be injurious to other property or improvements in the vicinity. B. Delete 14 -2G -7H, Minor Adjustments, paragraph 5 and subparagraphs a. through e., and substitute in lieu thereof the following, and add paragraph 6: 5. The FBC Committee may approve deviations from the facade stepback requirements set forth in Section 14-2G-3, Subdistrict Standards or building design standards set forth in Section 14 -2G -7F, provided the following approval criteria are met: a. The building includes an alternative design solution that equally or better meets the intent of the specific standard being modified; and b. The building is uniquely designed to fit the characteristics of the site and the surrounding neighborhood, is consistent with the goals of the Downtown & Riverfront Crossings Master Plan or Central District Plan, as applicable, and will not detract from or be injurious to other property or improvements in the vicinity; and c. The building demonstrates excellence in architectural design and use of durable materials; and d. There are unique characteristics of the site or neighboring properties that lend to alternative design approaches, or that make it difficult or infeasible to meet the requirements; or the proposed building is designed true to a specific architectural style and adherence to the building design standards would be impractical or compromise the building's architectural integrity; and e. For requests for waivers of an upper floor stepback requirement, the building must include an alternative means of visually breaking up the vertical plane of the building. 6. In mid -block locations, the FBC Committee may waive the minimum building height standard to allow for a 2nd story pedestrian courtyard (an area surrounded by building facades on at least 3 sides), provided a screen wall that is at least as tall as the second story building fagade is constructed co -planar or Ordinance No. 17-4731 Page 3 recessed a maximum of 3' from the street -facing facade. The screen wall may either be constructed of high quality building materials that faithfully imitate an architecturally -finished exterior building facade with complementary window openings and articulation, or constructed as a decorative screen wall with a semi -transparent, open pattern, where the top of the screen wall aligns generally with the top of the second story. For purposes of regulating signage, the screen wall will be considered a building wall. SECTION II. REPEALER. All ordinances and parts of ordinances in conflict with the provisions of this Ordinance are hereby repealed. SECTION III. SEVERABILITY. If any section, provision or part of the Ordinance shall be adjudged to be invalid or unconstitutional, such adjudication shall not affect the validity of the Ordinance as a whole or any section, provision or part thereof not adjudged invalid or unconstitutional. SECTION IV. EFFECTIVE DATE. This Ordinance shall be in effect after its final passage, approval and publication. Passed and approved this 21st day of november 12017 MA OR ATTEST: - yj I CI7e, K Approved by: City Attorney's Office 7 Ordinance No. 17-4731 Page 4 It was moved by Mimc and seconded by Dickens Ordinance as read be adopted, and upon roll call there were: AYES: NAYS: ABSENT: ABSTAIN: x x Botchway g Cole x Dickens x Mims g Taylor x Thomas Throgmorton that the First Consideration 11/06/2017 Vote for passage: AYES: Cole, Mims, Taylor, Thomas, Throgmorton, Botchway, NAYS: None. ABSENT: Dickens. Second Consideration _ Vote for passage: Date published_ 11/30/2917 Moved by Mims, seconded by Taylor, that the rule requiring ordinances to be considered and voted on for passage at two Council meetings prior to the meeting at which it is to be finally passed be suspended, the second consideration and vote be waived and the ordinance be voted upon for fihai passage at this time. Ir --CITY OF IOWA CITY sc � MEMORANDUM Date: October 5, 2017 1II To: Planning and Zoning Commission From: Karen Howard, Associate Plann Re: Follow-up regarding amendmen o the Riverfront Crossings form -based code related to upper floor stepback and minimum building height in the South Downtown Subdistrict. At your last meeting. Commission members expressed concerns about eliminating the upper floor stepback requirement in the South Downtown Subdistrict as proposed in the staff memo dated September 21, 2017. Concerns were expressed about allowing monotonous building facades with little visual interest, especially for the taller, block -scale buildings that are common in Riverfront Crossings. You requested alternative code language that would allow administrative flexibility for granting reductions or waivers of the stepback requirement in certain circumstances, but only if an acceptable alternative design solution was proposed to break up the vertical mass of taller buildings. As we discussed, there are a variety of ways to visually distinguish the upper floor facade from the lower floors. Use of a raised cornice or other horizontal string course or banding above which changes in building material, texture, color, or window pattern can all be used effectively to create more interesting building facades and break up the vertical mass of a taller building. These techniques are often used on buildings that have a stepback, but can also serve as alternative design solutions on buildings where there is no significant break in the vertical plane of the building. There are many options that would work for both modern and traditional designs. During your discussion, the University of Iowa School of Music building was cited as an example of a modern building where there is not an upper floor stepback, but where other design techniques were used to visually reduce the vertical mass of the building wall along Clinton Street. A historical example mentioned was the Jefferson Hotel, where the top floors of the eight story building are distinguished from the middle floors through an elaborate raised cornice. Walking or driving around the city, you will find many similar examples on buildings of various architectural styles. Recommendation: As stated in the previous staff memo, there are instances where it would not be appropriate to waive or reduce the stepback requirement, but if circumstances warranted a reduction or waiver, the alternative design techniques mentioned above may be effective in meeting the intent of the standard. To that end, staff recommends the following amendments to the minor adjustment section of the form -based code. Staff also recommends allowing a waiver of the minimum building height standard as discussed in the previous staff memo and as outlined below. Page 2 Amend 14 -2G -7H, Minor Adjustments, paragraph 1, as follows: H. Minor Adjustments 1. The FBC Committee may approve deviations from the building placement, fagadm oasks- 13uildiag-prejestiens, and parking, loading, and service area placement standards set forth in Section 14-2G-3, Subdistrict Standards. Standards greater or lesser than the ranges allowed may be approved in the following circumstances provided the approval criteria listed below are met: a. For publicly -accessible outdoor plazas; b. For irregular lots that make meeting the requirements impractical or infeasible; c. For buildings along Ralston Creek; d. For liner buildings, civic, or institutional buildings where unique building needs or site constraints make it difficult to fully comply with the standards; e. For buildings along pedestrian streets designed to maximize access to and views of the Iowa River; or f. For other special circumstances, provided that the intent of the standard and the Downtown & Riverfront Crossings Master Plan or Central District Plan, whichever is applicable, is met. g. Approval Criteria: (1) There are unique characteristics of the site or neighboring properties that lend to alternative design approaches, or that make it difficult or infeasible to meet the requirements; and (2) The proposed design and placement of the building, parking, and service areas fit the characteristics of the site and the surrounding neighborhood, are consistent with the intent of the standard being modified and the goals of the Downtown & Riverfront Crossings Master Plan or Central District Plan, whichever is applicable, and will not detract from or be injurious to other property or improvements in the vicinity. Amend 14 -2G -7H, Minor Adjustments, paragraph 5, as follows: 5. The FBC Committee may approve deviations from the facade stepback requirements set forth in Section 14-2G-3, Subdistrict Standards or building design standards set forth in Section 14 -2G -7F, provided the following approval criteria are met: a. The An alternative design solution has been proposed by the applicant and it equally or better meets the intent of the specific standard being modified; and b. The proposed building design is uniquely designed to fit the characteristics of the site and the surrounding neighborhood, is consistent with the goals of the Downtown & Riverfront Crossings Master Plan or Central District Plan, as applicable, and will not detract from or be injurious to other property or improvements in the vicinity; and c. The proposed building demonstrates excellence in architectural design and durability of materials; and d. There are unique characteristics of the site or neighboring properties that lend to alternative Page 3 design approaches or that make it difficult or infeasible to meet the requirements; and/or the proposed building is designed true to a specific architectural style and adherence to the building design standards would be impractical and/or compromise the building's architectural integrity. e. For requests for waivers of an upper floor stepback requirement an alternative means of visually breaking up the vertical plane of the building has been proposed and meets all of the approval criteria stated above. Amend 14 -2G -7H, Minor Adjustments, adding a new paragraph 6, as follows: 6 In mid -block locations the FBC Committee may waive the minimum building height standard to allow for a 2"d story pedestrian courtyard (an area surrounded by building facades on at least 3 sides) provided a screen wall that is at least as tall as the second story building facade is constructed co -planar or recessed a maximum of 3' from the street -facing facade. The screen wall must be constructed of high quality building materials that faithfully imitate an architecturally finished exterior facade of the building with complementary window openings and articulation Alternatively, it may be designed as a decorative screen wall that has a semi -transparent open pattern provided the top of the screen wall aligns generally with the top of the second story. For purposes of this provision the screen wall will be considered a building wall for purposes of regulating signage. r --�-I_.:.®gar CITY OF IOWA CITY Usk � MEMORANDUM Date: September 21, 2017 To: Planning and Zoning Commission From: Karen Howard, Associate Planner Re: Amendments to the Riverfront Crossings form -based code related to upper floor stepback and minimum building height in the South Downtown Subdistrict. Introduction: The developers of a proposed building at the southeast corner of Burlington and Clinton Streets have requested amendments to the Riverfront Crossings form -based zoning standards to allow a waiver of the upper floor stepback requirement and the minimum height requirement for a portion of the building. The property is located in the Riverfront Crossings — South Downtown Subdistrict and is zoned RFC - SD. The proposed project consists of a one-story base with two 6 -story towers separated by a second floor outdoor plaza that is approximately 40 feet wide and opens toward Clinton Street. The north tower of the seven story building would extend approximately 162 feet along Burlington Street and approximately 70 feet along Clinton Street. This portion of the building would have retail and office on the first 2 floors with residential apartments above. The south tower would be approximately 52 feet wide with frontage on Clinton Street and would contain an extended stay hotel. The hotel would be adjacent to the Hilton Garden Inn, recently constructed on Clinton Street. The second floor plaza between the two towers would be shared open space for hotel guests, apartment residents, and office tenants. (See attached illustrations of the proposed building). The maximum building height in the RFC -SD Zone is 8 stories with floors above the 5'" story required to step back 10 feet from the lower story facade in order to reduce the perceived height of the building. At street corners, tower elements or similar corner emphasis treatments may be exempt from the stepback requirement for a maximum of 35 feet as measured from the corner of the building. The RFC -SD District also has a minimum building height of 2 stories to maintain a minimum street wall and well- proportioned facades that create a comfortable sense of enclosure for pedestrians. Background: The City encourages development and redevelopment in the Riverfront Crossings District, in part, by allowing higher residential densities, taller block -scale buildings, and lower parking requirements. To ensure that new development results in neighborhoods that are safe and walkable and that create a high quality environment for residential living, there are form -based standards that help break up the mass and scale of larger, bulkier buildings and frontage standards that address how buildings "meet the street' with clearly defined street -facing entries, landscaping, ample window coverage and careful delineation between public and private space. The combination of frontage standards and building design standards work together to create a more human -scaled environment that is rich in visual Page 2 interest along street frontages making it a pleasant place to walk, bike, and spend time at local shops and restaurants. The upper floor stepback requirement and the fagade composition standards are the provisions in the code that specifically help to visually reduce the mass and scale of taller, bulkier buildings. Articulating the horizontal plane of a building wall with fagade recesses or projections in combination with changes in window pattern, building materials, textures, or color visually breaks the building into smaller modules that helps to reduce the mass of long, flat building facades that otherwise might be imposing or monotonous. To reduce the perceived height of the building, the upper floor stepback standard requires a break in the vertical plane of a building wall by stepping back the upper stories from the lower floors above a certain base height. The standards are intended to establish a consistent base height for each subdistrict in Riverfront Crossings and any stories above that base height are required to step back a minimum of 10 feet. From a pedestrian vantage point the height of a taller building appears to be more consistent with the base height because the floors above the stepback recede from view, open views along a street corridor and to the sky and allow more light to reach the sidewalk level. Discussion of Solutions: Upper Floor Stepback Requirement: The importance of the upper floor stepback standard varies based on the context. The stepback requirement is of heightened importance in the following instances: • For buildings that are granted bonus height where the building will be taller than other buildings in the vicinity; • For buildings located on streets where compatibility with the historic or lower -scale neighborhood context is of particular concern; • For buildings located on narrower street rights-of-way; and • In cases where preservation of views of iconic buildings or other features are important to the community, such as views of the Old Capitol. Along a street with a wider right-of-way or where existing buildings in the immediate vicinity exceed the base height without an upper floor stepback, meeting the standard may not be as important as achieving other community goals and objectives. The primary objective in South Downtown is to serve as an extension of the Downtown by encouraging a mix of high quality residential, office, retail, and civic uses at an urban intensity similar to downtown. The South Downtown Subdistrict abuts the University District on the west and Downtown Iowa City on the north. The Central Business District (CB -10) Zone does not have an upper floor stepback requirement for taller buildings and the University is not subject to local zoning regulations. Along the southern edge of the South Downtown, most properties have either recently redeveloped or are government buildings (county and federal). Along the east edge along Gilbert Street, the South Downtown subdistrict abuts the Gilbert subdistrict, which provides a transition to the lower -scale neighborhoods to the east. Given that the South Downtown is an area where taller buildings exist or may be developed without an upper floor stepback, staff believes that requiring a stepback above the 5l" story is not particularly important to achieving the objectives of the Downtown and Riverfront Crossings Master Plan, except for buildings granted bonus height to exceed the maximum eight story Page 3 height standard or along the Gilbert Street frontage where a transition to the lower scale neighborhood to the east is of importance. As a case in point, the proposed development at the corner of Clinton and Burlington Street will incorporate several desirable features that further important goals and objectives of the Downtown and Riverfront Crossings Master Plan: • Ground floor retail space and Class A office space in a prime downtown location; • A high quality extended stay hotel; • Outdoor amenity space on a large second floor courtyard that will serve hotel guests, office tenants, and apartment/condo residents. Both the Class A office space and the extended stay hotel would qualify this project for bonus height under the provisions of the Riverfront Crossings Code. However, the developers would like to keep the building at seven stories. Eliminating the upper floor stepback requirement from the South Downtown subdistrict standards would, in effect, provide an alternative density bonus for this particular building by allowing additional floor area in the top two stories of the building while also allowing the developers to maintain a greater separation between the towers and therefore more generous outdoor plaza space on the second floor. With regard to context, the building will be located directly across Clinton Street from the new University of Iowa School of Music, which does not have an upper floor stepback and across Burlington Street from the Central Business District (CB -10 Zone) where an upper floor stepback is not required. Staff finds that eliminating the stepback requirement in the South Downtown is a reasonable solution that will allow additional buildable area in a district where high intensity development is encouraged, except for buildings that are granted bonus height or for building frontages along Gilbert Street, where reducing the perceived height of taller buildings is of greater importance. Minimum Building Height Standard: The developers of the proposed building at the corner of Burlington and Clinton are also requesting a waiver of the minimum building height requirement to allow second floor plaza space between the two towers. Locating the plaza on the second floor instead of the 3`tl floor will allow additional outdoor views and access to the courtyard from the second floor office space and from the second floor of the hotel. In lieu of second floor building space they propose to construct a semi -transparent screen wall that will provide a similar sense of enclosure from a pedestrian perspective. As part of this screen wall they are considering incorporating creative signage for the hotel, which will provide additional visual interest to the fagade. Staff finds this to be a reasonable approach to achieving the same goal and recommend amending the code to allow the flexibility for staff to administratively approve a minor adjustment in such a case. By limiting such an adjustment to mid -block locations and requiring a screen wall in lieu of a second story, the goal of providing a consistent minimum street wall will be achieved, while the additional outdoor space will enhance the living and working environment for building residents/tenants. Page 4 Recommendation: Staff recommends amending Title 14, Article 2G, Riverfront Crossings and Eastside Mixed Use District Form -based Development Standards, as set forth below. The underlined text is new language to be added to the code. Amend 14 -2G -3A -3c., Building Height and Fagade Stepbacks, as follows: c. Building Height and Facade Stepbacks (1) Principal building heights shall be regulated as provided below: (a) In the South Downtown subdistrict buildings shall be 2 stories min. and S stories max. in height above grade. (2) Upper floor building facades facing and visible from streets, plazas, or parks shall step back 10' min. from the lower floor facade as follows: (a) In the South Downtown subdistrict on building facades facing Gilbert Street or for buildings that are granted bonus height a stepback is required above the 5th floor. (b) In the Park, South Gilbert, and University subdistricts above the 4th floor. (c) At street corners, tower elements or similar corner emphasis treatments may be exempt from the stepback requirement for up to one fagade bay (max. 35 feet) as approved by the FBC Committee. (d) The required facade stepback may be established at a lower floor than stated above, provided it is established at least 30' in height above grade. Amend 14 -42G -7H, Minor Adjustments, adding a new paragraph 6, as follows: 6 In mid block locations the FBC Committee may waive the minimum building height standard to allow for a 2nd story pedestrian courtyard (an area surrounded by building facades on at least 3 sides) provided a screen wall that is at least as tall as the second story building facade is constructed co -planar or recessed a maximum of 3' from the street -facing facade. The screen wall must be constructed of high quality building materials that faithfully imitate an architecturally finished exterior facade of the building with complementary window openings and articulation. Alternatively it may be designed as a decorative screen wall that has a semi -transparent, open pattern provided the top of the screen wall aligns generally with the top of the second story. The screen wall will be considered a building wall for purposes of regulating signage. Attachments: a Concept plans for the proposed building and second story pedestrian courtyard. Approved by: l John Yapp, Development Services Coordi Neighborhood and Development Services MINUTES APPROVED PLANNING AND ZONING COMMISSION OCTOBER 5, 2017 — 7:00 PM — FORMAL MEETING EMMA J. HARVAT HALL, CITY HALL MEMBERS PRESENT: Carolyn Dyer, Ann Freerks, Mike Hensch, Phoebe Martin, Max Parsons, Mark Signs, Jodie Theobald MEMBERS ABSENT: STAFF PRESENT: Sara Hektoen, Karen Howard OTHERS PRESENT: RECOMMENDATIONS TO CITY COUNCIL: By a vote of 7-0 the Commission recommends approval of amendments to Title 14, Chapter 2, Article G, the Riverfront Crossings Form -based Development Standards, related to upper floor stepback and minimum building height as discussed in the staff memo dated September 21 and in the follow-up staff memo dated October 5, as amended. By a vote of 7-0 the Commission recommends approval of amendments to Title 14, Zoning, Chapter 4, Use Regulations and Article 14-2D, Industrial and Research Zones, to restrict sales of consumer fireworks to Industrial Zones as described in the Staff report. CALL TO ORDER: Freerks called the meeting to order at 7:00 PM. PUBLIC DISCUSSION OF ANY ITEM NOT ON THE AGENDA: None. CODE AMENDMENT: Discussion of Amendments to Title 14, Chapter 2, Article G. the Riverfront Crossings form - based code related to upper floor stepbacks and minimum building height standards. Howard stated this is a continuation of discussion from the last meeting where the Commission asked Staff to bring forward alternative language for the Code Amendment. The original proposal was to eliminate the stepback requirement in the South Downtown District except for buildings receiving bonus height and for building frontages along Gilbert Street. Rather than eliminating the stepback requirement in the South Downtown Subdistrict, the Commission requested alternative language that would allow for administrative approval of minor adjustments to allow stepback reductions or waivers with added approval criteria that would make it clear that if requesting an minor adjustment an alternative design solution must be proposed that equally or better meets the intent of breaking up the vertical mass of taller buildings. Howard shared the proposed changes to the Minor Adjustment section of the Form - Based Code language and noted in paragraph 1 Staff is proposing to strike the allowance for Planning and Zoning Commission October 5, 2017 — Formal Meeting Page 2 of 6 minor adjustments for fagade stepback requirements as that section addresses requests for adjustments to building and parking placement rather than adjustments to the building design. Instead staff recommends moving the allowance for minor adjustments for fagade stepbacks to paragraph 5, which addresses requests for minor adjustments for building design standards. Staff also added some language in paragraph five to clarify situations where the stepback waiver could be considered and what the approval criteria are. Howard noted that requests for minor adjustments are review by the Staff Design Review Committee. For cases located in the Riverfront Crossings District this committee is considered the Form -Based Code Committee. This committee reviews every project in the Riverfront Crossings District and reviews all requests for minor adjustments to the form -based code standards. Currently, in order to qualify for a minor adjustment, the applicant must demonstrate that there are site characteristics or other conditions that make it difficult or infeasible to meet the requirement. The proposed change to the code language would broaden the administrative discretion to consider if there is something unique about the property or neighboring property that lends to other design approaches. In the case of requests for adjustments to building design elements, including stepbacks, the applicant must propose an alternative design solute that equally or better meets the intent of the specific standard being modified. With regard to requests for a waiver of the upper floor stepback requirement the applicant must propose an alternative means of visually breaking up the vertical plane of the building. The FBC Committee reviews all the criteria listed in paragraph five for every application. Martin asked who sits on the FBC Committee. Howard said the membership of the Committee has varied over the years but typically is staff from the Neighborhood & Development Services Department and more recently staff from the City Manager's office. Howard showed the Commission examples of buildings where other means besides fagade stepbacks are used to visually break up the vertical mass. There is typically some horizontal element, such as a band, raised cornice, etc, that creates a visual break between the middle floors and the upper floor or floors of the building, with the upper floors having a different material, color, texture, window pattern or other design distinction from the floors below the horizontal break. Howard said in most instances it will be important to maintain the stepback requirement particularly where reducing the perception of the height of the building is particularly important. Dyer noted the addition of the new paragraph six in section 14 -2G -7H and that paragraph seems to be specific to the one proposed building on the corner of Clinton and Burlington Streets. Dyer questioned if the City should adopt a rule or law that only applies to one building. In this situation the applicant could design the building as two stories and then ask for a waiver for the second floor to be open patio space and avoid having to adopt this new paragraph. Howard explained that a pedestrian plaza on a floor above the second story would be allowed by right since the minimum building height is 2 stories. Howard believes that while rare, there may be other similar situations on large sites where a U-shaped building would be proposed where a second story pedestrian courtyard would be preferred over a courtyard on an upper floor. It is also important to only allow such an adjustment to a midblock location, since it would not be desirable to have such a short building anchoring a street corner. That is why the standard is written so specifically. Freerks asked a question under paragraph five, sections a. and e. where it states an applicant must propose an alternative design solution that equally or better meets the intent and in E visually breaks up the vertical plane. However it doesn't say it must be agreed upon or Planning and Zoning Commission October 5, 2017 — Formal Meeting Page 3 of 6 accepted or adopted so is that how the language is always written. Howard noted that Ms. Freerks has called earlier in the day asking for clarification to this question. After consideration, staff agrees the language could be more clearly stated as affirmative approval criteria. Howard showed a slide with this alternative sentence construction, which would make it clear that the FBC Committee must determine that all the approval criteria have been met before an adjustment is approved. If the answer is no to any single one of the items, the application cannot be approved. The applicant would then have the option to propose an alternative design solution that would satisfy the criteria. Howard showed the Commission the following alternative wording of the proposed code amendment. a. An alternative design solution has been proposed by the applicant and it equally or better meets the intent of the specific standard being modified; and e. For requests for waivers of an upper floor stepback requirement, an alternative means of visually breaking up the vertical plane of the building has been proposed and meets all the approval criteria stated above. Freerks thanked Howard for the language update and feels it is much more clear Dyer stated that if they are discussing language updates, in item b is states "proposed building design is uniquely designed" and could just state "the building is uniquely designed". Howard agreed. Dyer asked with these adjustments can the building that was presented to the Commission at the last meeting still be built. Howard said that proposal has not gone through design review so she cannot comment on the result. Freerks opened the public hearing. Seeing no one, Freerks closed the public hearing. Hensch moved to recommend approval of amendments to Title 14, Chapter 2, Article G. the Riverfront Crossings form -based code related to upper floor stepback and minimum building height in the South Downtown Subdistrict as listed in the Staff report and amended. Parsons seconded the motion. Freerks feels this will set up the framework to put better buildings into the downtown area. Dyer noted she hopes is will be regarded as applied with the term minor adjustments and not major adjustments. A vote was taken and the motion carried 7-0. CODE AMENDMENT: Discussion of an amendments to Title 14, Zoning, Chapter 4, Use Regulations and Article 14- 2D, Industrial and Research Zones, to restrict sales of consumer fireworks to Industrial Zones. Howard stated that recently State legislation allowed for the sale of first- and second-class consumer fireworks in Iowa during certain time periods during the year. While local jurisdictions Planning and Zoning Commission September 21, 2017 —Formal Meeting Page 5 of 11 Me�.17d11��Y� Discussion of Amendments to Title 14, Chapter 2, Article G. the Riverfront Crossings form - based code related to upper floor setback and minimum building height in the South Downtown Subdistrict Howard stated this Amendment was requested by the developers of the Hieronymus property, the undeveloped parcel at the corner of Burlington and Clinton Streets. They are requesting a code amendment to allow a waiver of the upper floor stepback requirement and the minimum height requirement for a portion of the building. Howard showed some images of the proposed building. It is a seven -story building with commercial on the ground floor, offices on the second floor, and then apartments above. There will also be a second tower that is adjacent to the Hilton Garden Inn that will be an extended stay hotel (The Element). Between the two towers is a second story plaza space. In the South Downtown District there is a two-story minimum height requirement but in this situation they are proposing a second story screen wall that would give the appearance of a two story building. Behind this screen wall there would be an open air plaza. In the South Downtown there is a requirement for a fagade stepback of 10 feet above the 5" story, except at street corners tower elements or other similar corner emphasis treatments may be exempted from the stepback. Freerks pointed out that the rendering is a bit misleading because it doesn't correctly show how the upper floors of the proposed building will be forward of the stepped back area on the Hilton Garden Inn on the abutting property. Howard stated that this appeared to be a function of the perspective in the drawing, but acknowledged that the stepped back area on the Hilton Garden Inn will not be as visible from certain vantage points if the upper floors of the new building are not similarly stepped back. Howard continued with the staff analysis. She noted the City encourages development and redevelopment in the Riverfront Crossings District, in part, by allowing higher residential densities, taller block -scale buildings, and lower parking requirements. To create a high quality environment for residential living, there are form -based standards that help break up the mass and scale of larger, bulkier buildings both on the horizontal and vertical plane. On the horizontal plane, the building fagade has to be articulated with a fagade recess every 50 feet that create modules. Each of these modules then has to be differentiated in some way from the adjacent module to create visual interest and break up long building walls. While there are several different options for how to modulate the horizontal plane, the only standard in code currently to break up the vertical plane is the requirement for a fagade stepback if the building is over a certain base height, which differs between subdistricts. This standard has the effect of reducing the perceived height of a building. Howard noted the importance of the upper floor stepback standard varies based on the context. The stepback requirement is of heightened importance in the following instances: • For buildings that are granted bonus height where the building will be taller than other buildings in the vicinity; • For buildings located on streets where compatibility with the historic or lower -scale neighborhood context is of particular concern; • For buildings located on narrower street rights-of-way; and • In cases where preservation of views of iconic buildings or other features are important to the community, such as views of the Old Capitol. Planning and Zoning Commission September 21, 2017 — Formal Meeting Page 6 of 11 Along a street with a wider right-of-way or where existing buildings in the immediate vicinity exceed the base height without an upper floor stepback, meeting the standard may not be as important as achieving other community goals and objectives. The primary objective in South Downtown is to serve as an extension of the Downtown by encouraging a mix of high quality residential, office, retail, and civic uses at an urban intensity similar to downtown. The Central Business District (CB -10) Zone does not have an upper floor stepback requirement for taller buildings and the University is not subject to local zoning regulations. Signs asked what the maximum height of buildings is allowed on the north side of Burlington Street. Howard said it is zoned CB -10 which doesn't have a specified height limit and is limited only by the airport clearance needed and the ability to provide the necessary parking if there are residential units in the building. Howard continued that along the southern edge of the South Downtown, most properties have either recently redeveloped or are government buildings (county and federal). Along the east edge along Gilbert Street, the South Downtown subdistrict abuts the Gilbert subdistrict, which provides a transition to the lower -scale neighborhoods to the east. Freerks asked if a current structure was demolished and redeveloped, the new South Downtown District guidelines would be used, nothing can be grandfathered in. Howard confirmed that was the case. However, with the proposed amendment, the stepback requirement would not be required except in cases where bonus height is granted and along Gilbert Street where there is a transition to a district with a lower height limit. The height limit is the South Downtown Subdistrict is eight stories and if a building were to be granted bonus height, or if located along Gilbert Street there would still be a stepback required above the fifth story. However in other areas of the South Downtown given the context, Staff believes an eight story building does not need a stepback to achieve the objectives of the Downtown and Riverfront Crossings Master Plan. Howard noted in this area many of the buildings have been constructed in the past 10 years, so redevelopment is not likely in the near future. Freerks agreed but noted most of those building are not as high. Howard stated that any building over seven stories has to meet additional building code requirements, which make high rise buildings significantly more costly to build. This is why most developers stay with seven stories or under. So by eliminating the stepback it will allow developers to have some additional building floor area without having to add stories with the greater expense. Hensch asked if the MidWestOne Bank building was six stories, Howard said it is six stories with no stepback because it was developed before the Riverfront Crossings Code was adopted. Signs asked about the added language regarding building facades and what the purpose of that added language is. Howard said that clarifies that a stepback is only required in the South Downtown on buildings that have facades facing Gilbert Street or granted bonus height. Therefore for everything else, a stepback is not required. Howard stated the second Code Amendment is really to allow the staff Form -Based Code Committee (that reviews all proposals for development in Riverfront Crossings) to waive the 2 story minimum building height requirement in cases there is a second story outdoor plaza space planned in a mid -block area and provided a screen wall is constructed to meet the intent of the Planning and Zoning Commission September 21, 2017 — Formal Meeting Page 7 of 11 requirement. She doubts this request will occur very often, since most developments seek to maximum building area rather than reduce it. She noted that particularly in an urban setting, where open space is more limited, providing additional usable outdoor space is a benefit to the residents and commercial tenants of a building. Freerks asked who was on the Staff Form -Based Code Committee. Howard noted it currently includes staff from Neighborhood and Development Services and the City Manager's office. Dyer stated she does not like the proposed amendment (to eliminate the stepback requirement), but that City Council has already approved the building for this project. Freerks stated that the Commission can still recommend changes. Dyer noted that the stepback requirement is there for a purpose. She feels the builders in this city insist on using every square inch of a lot so there are just chunks all over the place and changing the stepback will just permit more chunks. She noted that although the University's Music Building doesn't have a stepback it does have the curved front so when walking by it the eye only goes up as high as the curved front. She noted that in cities like Chicago and New York there are so many examples of interesting things that can be done with buildings than just apartments with Hawkeye things hanging from the railings. Dyer feels the stepbacks should be required as there doesn't seem to be any articulation of the buildings. Freerks noted that the idea of stepbacks was to create a better streetscape and make buildings more interesting downtown. This seems to be stripping that away. This particular corner has been an issue with finding something to develop there, but even more so is the fear of what could be redeveloped someday throughout this area of downtown. She also noted that the Music Building is lovely, and doesn't have a stepback, so there have to be options. Are there ways in the Code to enforce some vertical design standards to address larger buildings from being just large cubes. Howard stated that in the Riverfront Crossings section of the Design Code there is quite a bit of language about breaking up the horizontal plane, but the stepback is the only standard for breaking up the vertical plane. As to the comments about cube -like buildings, she clarified that the proposed building will be articulated more than is currently shown in the drawing, since the recesses where the balconies are located will have to be carried all the way to top of the building at least every 50 feet, so the building will look less flat than is currently shown in the drawings. This property hasn't been through the Design Review process so it will be addressed then, but the change in plane does have to be carried all the way to the roof per the Code. Howard did confirm however that in the Form -Based Code there is nothing required for the vertical plane of a taller building except for the stepback. Howard agreed there are other ways to break up the vertical plane than just a stepback. For example, she referred to the drawing of the UI Music School, there is a slight change in the plane at a certain height with a change in windows on the upper floor and also a change in texture, color, and materials. Howard said there are many ways to break up a vertical plane and language could be inserted into the Design Standards of the Form -Based Code for options required to break up a vertical plane in cases where a stepback is not as important to reduce the perceived height of the building. Martin stated that she also doesn't want to see every building on a block have a stepback because then it is just the same issue — all the same, nothing to make buildings unique. She agrees that it would be good to add language about options for architectural design to make the buildings unique. Planning and Zoning Commission September 21, 2017 —Formal Meeting Page 8 of 11 Freerks noted the Commission is not saying they are dictating how buildings are designed, but want to make sure City Staff have the tools to enforce that the Community is not stuck with ho- hum building designs filling up every block in this area. The Riverfront Crossings Plan and code were thoroughly thought through with the intent of creating a unique area with high quality building designs. She noted that there was a lot of community input on this plan. Hensch stated for this particular one building he doesn't have a problem with no stepback because it is nice to have the one story base with the two towers but agrees there should be something to break it up. If they are going to give up the stepback then there should be some architectural design in compensation. Dyer questioned that it is required that there be commercial on the ground floor however so many of the buildings in the downtown area designed this way (with commercial on ground floor and apartments above) are vacant — there doesn't seem to be a demand for commercial and all the pedestrians see is a bunch of empty glass space. Parsons agreed and said he's seen in many larger cities where it is all residential, no need for the commercial at the bottom. Howard stated that the Riverfront Crossings Code doesn't require commercial on the ground floor, however it is required in the corner space on this particular property because it is on a major street corner, but wouldn't have to extend all along the block. The code allows the developer to decide and to gauge the market demand in that location. Signs stated he is struggling with this issue, the new Hilton Garden Inn building has a stepback but it is still a boring flat view to be honest. He does agree it would be worse if there was no stepback. He feels the rendering for Hieronymus property are similar to what is in every other city but also feels that is not what the residents of Iowa City want, to be like every other city. He also stated that so much time is spent on creating the guidelines for an area like Riverfront Crossings and then because one particular project wants something, we change the code. The Plan in in place, developers know there is a code, but they still design things how they want and then come to the City and ask for change. Freerks opened the public hearing. Seeing no one, Freerks closed the public hearing Freerks feels this item should be deferred to allow Staff to come up with the appropriate language to add per this discussion this evening. Howard asked the Commission to confirm that the desire of the Commission is to have language added to the Design Standards regarding vertical plane similar to the design standard required for horizontal planes and that the vertical plane options could be used in lieu of a stepback. So it would be to add a paragraph in the minor modification section to talk about the specific instances where it is reasonable to adjust the stepback requirement, but require some other design solution instead of the stepback. Howard noted that Staff already have the ability to waive the stepback standard in cases where it is difficult or infeasible to provide it. For example at the Sabin Townhomes, since it is a shallow liner building that is only 20 feet deep, if there were a 10 foot stepback there would only be 10 feet on the top floor, which is not cost effective or particular useable space. Planning and Zoning Commission September 21, 2017 —Formal Meeting Page 9 of 11 Freerks agreed that was fine, but they also want the addition of the vertical design standard as well, so it is not just a waiver without any other design solution to meet the intent. Signs added that the Commission hasn't address the second story courtyard option, but he likes the solution Staff has come up with and the rendering does look like it is two stories. Martin agreed. Dyer feels the language is so specific to just this one building that it might not be useable for another situation. Hensch moved to defer the Code Amendment Item to the next meeting. Signs seconded the motion. A vote was taken and motion carried 7-0. CONSIDERATION OF MEETING MINUTES: SEPTEMBER 7. 2017 Signs moved to approve the meeting minutes of September 7, 2017. Martin seconded the motion. A vote was taken and the motion passed 7-0. PLANNING AND ZONING INFORMATION: Dyer gave a report from the National American Planning Association Conference. It was Dyer's first visit to New York City in 27 years and felt is seemed to be more open, friendlier, and accessible than in the past. There are parklets in the streets and bike lanes in the streets now and just seemed to be more diversity everywhere. She noted there is an exceptional amount of construction going on and it is hard to even recognize the skyline. The skyline used to be just the World Trade Center, Empire State Building, and Chrysler Building and is so much more now. At the convention there were 175 sessions to choose from, including a lot of field trips. The keynote speech was by the editor of The Wired magazine and he talked about the millennial generation impact on the workforce and in the world. According to him the millennials are tech - savvy, collaborative, specific minded, racially diverse, globally oriented, green, and lead to growth in cities of walkability. Dyer met up with former Iowa City intern Marti Wolfe at the convention and noted that there were a lot of sessions about millennials, but they didn't include any millennials as speakers or on the panel. In contrast, Dyer went to a co -housing conference a few weeks later and there were several sessions about millennials conducted by millennials. Another speaker at the National American Planning Association Conference made the comment that with millennials so concerned about urbanization and walkability in central cities he wonders what will happen when the millennials have kids and there are no longer any schools in the central cities. Dyer shares that concern with Iowa City. There were also a lot of sessions on affordability and sustainability. Affordability is an issue absolutely everywhere, especially on the built -out cities on the coasts. New York, New Jersey, and Connecticut (and other perhaps) have by law or court ruling require cities to provide affordable housing in new market rate developments and must demonstrate the government themselves support affordable housing (financially or by providing land). Cities have done it in a number of ways that Iowa City does M Prepared by: Sylvia Bochner, Planning Intern, 410 E Washington St, Iowa City, IA 52240 Ordinance No. 17-4732 An ordinance amending Title 14, Zoning, Chapter 4, Use Regulations, and Article 14-21D, Industrial and Research Zones, to restrict sales of consumer fireworks to Industrial Zones. Whereas, recently enacted State legislation (Senate File 489) allows for the sale of first- class and second-class consumer fireworks in Iowa during certain times of the year; and Whereas, development standards within the industrial zones mitigate the risks of on-site sale of such explosive devices; and Whereas, the Planning and Zoning Commission has reviewed the proposed zoning amendments and recommends approval; and Whereas, restricting the sale of fireworks to the industrial zones is in the best interests of the safety and general welfare of the community. Now, therefore, be it ordained by the City Council of the City of Iowa City, Iowa: Section I. The Code of Ordinances of the City of Iowa City, Iowa is hereby amended as follows: A. Amend Section 14-4A-7, Other Use Categories, adding a new use category, Consumer Fireworks Sales, as follows: E. Consumer Fireworks Sales 1. Characteristics: Sales of first-class and/or second-class consumer fireworks, as defined by the American Pyrotechnics Association. 2. Examples: seasonal sales outlets 3. Accessory Uses: None. B. Amend 14-4A-41, Retail Uses, paragraph 4, Exceptions, by adding a new subparagraph j., as follows: j. Sales of first-class and/or second-class consumer fireworks is classified as an "Other Use" as set forth in 14-4A-7. C. Within section 14-2D-2, Amend Table 2D-1: Principal Uses Allowed in Industrial and Research Zones, by adding the category, "Consumer Fireworks Sales," as a use category under the "Other Uses" section, and indicating that such use is allowed as a provisional use (PR) in the 1-1 and 1-2 Zones. D. Amend 14 -4B -4E, (provisions applicable to) Other Uses, by adding a paragraph 7, as follows: 7. Consumer Fireworks Sales in the 1-1 and 1-2 Zones: In the 1-1 and 1-2 Zones, Consumer Fireworks Sales, as defined in this Title, are permitted, subject to the restrictions and dates of sale set forth in Title 661 Iowa Administrative Code Chapter 265, Consumer Fireworks Sales Licensing and Safety Standards. E. Amend 14-4D-2, Temporary Uses Allowed, by adding the following paragraph: • Outdoor display and sale of first-class and/or second-class consumer fireworks, as defined by the American Pyrotechnics Association, according to the restrictions and dates of sale set forth in Title 661 Iowa Administrative Code Ordinance No. --LL--&7-32 .732 Page 2 Chapter 265, Consumer Fireworks Sales Licensing and Safety Standards. Outdoor display and sales of such fireworks are only allowed in Industrial Zones. Section Il. Repealer. All ordinances and parts of ordinances in conflict with the provisions of this Ordinance are hereby repealed. Section III. Severability. If any section, provision or part of the Ordinance shall be adjudged to be invalid or unconstitutional, such adjudication shall not affect the validity of the Ordinance as a whole, or any section, provision, or part thereof not adjudged invalid or unconstitutional. Section IV. Effective Date. This Ordinance shall be in effect after its final passage, approval and publication. Passed and approved this 21� day of November '2017. G/ . Ma or Attest: e -e City Clerk Approved by: —,I, A""/ City Attorney's Office Ordinance No. 17-4732 Page 3 It was moved by Mims and seconded by Dickens Ordinance as read be adopted, and upon roll call there were: AYES: NAYS: x x x x x x x ABSENT: ABSTAIN: First Consideration 11/06/2017 Vote for passage: AYES: Mims, Taylor, Botchway, Cole. NAYS: None. Second Consideration _ Vote for passage: Botchway Cole Dickens Mims Taylor Thomas Tbrogmorton Thomas, Throgmorton, ABSENT: Dickens that the Date published 11/30/2017 Moved by Mims, seconded by Taylor, that the rule requiring ordinances to be considered and voted on for passage at two Council meetings prior to the meeting at which it is to be finally passed be suspended, the second consideration and vote be waived and the ordinance be voted upon for final passage at this time. r CITY OF IOWA CITY sd ..�.�19=`Q502%1 M E M O RA N D U M Date: October 5, 2017 To: Planning and Zoning Commission From: Karen Howard, Associate Plan Re: Proposed amendments to the Background: regarding sales of consumer fireworks Recently enacted State legislation allows for the sale of first- and second-class consumer fireworks in Iowa during certain time periods during the year. While local jurisdictions are still allowed to restrict or prohibit use of fireworks within their communities, they are not allowed to prohibit the sale of such fireworks. Zoning restrictions, however, may be adopted to restrict the location and conditions under which these types of fireworks may be sold. Based on experience from the first sales period last summer, the City Council requested more information regarding how fireworks sales might be better managed and controlled. Discussion of Solutions: The memo from the City Manager's office to the City Council on this matter is attached, which provides background information on the recent State legislation and outlines staff recommended changes to City policies and codes. After receiving this information, the City Council directed staff to prepare amendments to the zoning code that would restrict the sale of fireworks to Industrial Zones. These changes will improve safety and allow for more efficient and effective oversight of the sale of fireworks. In addition, restricting sales to Industrial Zones will reduce impulse purchases that may have contributed to the widespread police calls for service regarding the use of fireworks within city limits during the first sales period in June and July. Recommendation: Staff recommends creating a new use category for consumer fireworks sales and restricting such uses to the Industrial Zones (1-1 and 1-2). The amendments also clarify that temporary sales outlets for consumer fireworks, such as tent sales, are also restricted to Industrial Zones. Specific zoning code language is added as outlined below: Amend 14-4A-7, Other Use Categories, adding a new use category, Consumer Fireworks Sales, as follows: D. Consumer Fireworks Sales 1. Characteristics: Sales of first-class and/or second-class consumer fireworks, as defined by the American Pyrotechnics Association. 2. Examples: seasonal sales outlets 3. Accessory Uses: None. Page 2 of 2 Amend 14-4A-41, Retail Uses, paragraph 4, Exceptions, by adding a new subparagraph j., as follows: i. Sales of first-class and/or second-class consumer fireworks is classified as an "Other Use" as set forth in 14-4A-7. Amend Table 2D-1: Principal Uses Allowed in Industrial and Research Zones, by adding the category, "Consumer Fireworks Sales," as a use category under the "Other Uses" section, and indicating that such use is allowed as a provisional use (PR) in the 1-1 and 1-2 Zones. Amend 14 -4B -4E, (provisions applicable to) Other Uses, by adding a paragraph 7, as follows: 7. Consumer Fireworks Sales in the 1-1 and 1-2 Zones: In the 1-1 and 1-2 Zones, Consumer Amend 14-4D-2, Temporary Uses Allowed, by adding the following paragraph: Temporary sales of first-class and/or second-class consumer fireworks, as defined by the American Pyrotechnics Association, according to the restrictions and dates of sale set forth in Title 661 Iowa Administrative Code Chapter 265, Consumer Fireworks Sales Licensing and Safety Standards. Temporary sales of such fireworks are only allowed in Industrial Zones. Attachment: • Memo from the City Manager's Office to the City Council dated August 31, 2017 r CITY OF IOWA CITY '4 1 MEMORANDUM Date: August 31, 2017 To: City Council From: Simon Andrew, Assistant to the City Manager Re: Consumer Fireworks Sales Introduction: During the 2017 State of Iowa legislative session, legislation was enacted that allowed for the sale of consumer fireworks in the State of Iowa. Local communities maintained the ability to prohibit the use of fireworks within their jurisdictions; however, cities do not have the ability completely prohibit the sale of consumer fireworks. During the summer sales period of 2017, Iowa City continued a ban on use while several sales locations were permitted, both in temporary tents and existing brick and mortar establishments. Court decisions have clarified cities' rights in defining allowable zones in which sales may occur; after evaluating these cases and our experience during this year's sales period staff recommends the zoning code amendment identified below in addition to changes to temporary use permit requirements. History/Background: On May 9, 2017 the Governor signed Senate File 489, effective upon enactment, which established a licensing scheme for sellers of consumer fireworks and required the State Fire Marshall to adopt rules regarding fire safety, insurance coverage, and licensing that permits the sale of fireworks at: a) a permanent building between June 1 and July 8 and between December 10 and January 3; and b) at a temporary structure between June 13 and July B. SF489 provides that a city council may prohibit or limit the use of fireworks and that if it does so a violation of said prohibition is a simple misdemeanor with a fine of not less than $250. The City Council amended City Code to remove portions inconsistent with the new state law, continuing the prohibition on the use of fireworks within City limits in June of 2017. Local enforcement of the prohibition against the use of fireworks was incredibly challenging. The Iowa City Police Department responded to 453 calls for service during the period of June 1 to July 8, compared to only 27 calls during the same dates in 2016. In the majority of these calls officers were not able to identify the individuals using fireworks. When contact was made by officers, the individuals using fireworks were generally unaware that use was prohibited. The Iowa City Fire Department also responded to seven calls related to the use of fireworks. It is the hope that changes to the temporary use permit, fewer locations in which fireworks are sold, and additional public education measures will have some impact on the number of use violations within the City. As public education efforts and signage requirements are enhanced, staff expects to issue fewer warnings and more violations in the future. September 29, 2017 Page 2 Discussion of Solutions: Zoning Code: Staff recommends restricting the sale of fireworks to industrial zones. This would apply to both temporary tents and existing brick and mortar locations. The City of Des Moines faced a legal challenge when enacting a similar zoning code amendment and the court upheld Des Moines' ability to restrict sales to industrial zones. Temporary use permit requirements: Temporary use permits are the mechanism through which temporary sales tents are authorized. These are commonly used for lawn and garden sales in parking lots, Melrose Avenue football game day vendors, and similar temporary sale uses. A condition of the temporary use permit during the summer sales period was that signage must be posted indicating that the use of fireworks within the City is prohibited. Staff intends to enhance this requirement with larger signs placed in consistent locations at the point of entry and point of sale. Staff also intends to require that flyers be distributed with merchandise to further inform the consumer about the prohibition against use. The requirements would only apply to temporary tent sales, which are only allowed by state law during the summer sales period. Permit and inspection fees: the Iowa City Fire Department conducted inspections of temporary sales tents due to the fact that the State Fire Marshall was not able to inspect all locations statewide prior to the beginning of the sales period. Staff intends to incorporate an inspection fee into next year's process. Fees will be payable at the time of obtaining a temporary use permit. The amount of the fee will reflect the costs of inspection and the production of the required signage. Public information: the City communicated the prohibition against use through many different channels during the summer of 2017. Given that there was approximately one month between the signing of SF489 and the beginning of the sales period, communicating to residents that use was prohibited despite numerous sales locations within the City was difficult. Different local ordinances across the state added to the public's confusion. It is staff's hope that an earlier, concerted media campaign will alleviate some of this confusion, though there will undoubtedly be individuals who remain unaware of the prohibition against use. Again, as these education efforts are enhanced, we expect to issue fewer warnings and more violations. Recommendation: Staff recommends the changes to the zoning code and temporary use permit process outlined above. With agreement from Council, staff will begin the process of preparing the Code amendment for Planning and Zoning Commission and City Council consideration. Planning and Zoning Commission October 5, 2017 — Formal Meeting Page 3 of 6 accepted or adopted so is that how the language is always written. Howard noted that Ms. Freerks has called earlier in the day asking for clarification to this question. After consideration, staff agrees the language could be more clearly stated as affirmative approval criteria. Howard showed a slide with this alternative sentence construction, which would make it clear that the FBC Committee must determine that all the approval criteria have been met before an adjustment is approved. If the answer is no to any single one of the items, the application cannot be approved. The applicant would then have the option to propose an alternative design solution that would satisfy the criteria. Howard showed the Commission the following alternative wording of the proposed code amendment. a. An alternative design solution has been proposed by the applicant and it equally or better meets the intent of the specific standard being modified; and e. For requests for waivers of an upper floor stepback requirement, an alternative means of visually breaking up the vertical plane of the building has been proposed and meets all the approval criteria stated above. Freerks thanked Howard for the language update and feels it is much more clear Dyer stated that if they are discussing language updates, in item b is states "proposed building design is uniquely designed" and could just state "the building is uniquely designed". Howard agreed. Dyer asked with these adjustments can the building that was presented to the Commission at the last meeting still be built. Howard said that proposal has not gone through design review so she cannot comment on the result. Freerks opened the public hearing. Seeing no one, Freerks closed the public hearing. Hensch moved to recommend approval of amendments to Title 14, Chapter 2, Article G. the Riverfront Crossings form -based code related to upper floor stepback and minimum building height in the South Downtown Subdistrict as listed in the Staff report and amended. Parsons seconded the motion. Freerks feels this will set up the framework to put better buildings into the downtown area. Dyer noted she hopes is will be regarded as applied with the term minor adjustments and not major adjustments. A vote was taken and the motion carried 7-0. CODE AMENDMENT: Discussion of an amendments to Title 14, Zoning, Chapter 4, Use Regulations and Article 14- 2D, Industrial and Research Zones, to restrict sales of consumer fireworks to Industrial Zones. Howard stated that recently State legislation allowed for the sale of first- and second-class consumer fireworks in Iowa during certain time periods during the year. While local jurisdictions Planning and Zoning Commission October 5, 2017 —Formal Meeting Page 4 of 6 are still allowed to restrict or prohibit use of fireworks within their communities, they are not allowed to prohibit the sale of such fireworks. Zoning restrictions, however, may be adopted to restrict the location and conditions under which these types of fireworks may be sold. Based on experience from the first sales period last summer, the City Council requested more information regarding how fireworks sales might be better managed and controlled. The City Council directed staff to prepare amendments to the zoning code that would restrict the sale of fireworks to Industrial Zones. Howard referred to the code amendments in the staff report that would restrict sales within existing buildings in Industrial Zones and would also address temporary outdoor tent sales. Temporary use permits are the mechanism through which temporary sales tents are authorized. Hektoen added that in the past legislative session the State enacted a law that was very broadly worded and meant to tie local municipalities' hands in restricting use of plastic bags etc. However because it was so broadly worded, Staff is worried that imposing too many restrictions on a temporary use will run afoul of that other law, even though it is not a fireworks law. The City of Ankeny got sued because they regulated fireworks as a temporary use with many different types of conditions and the court ruled it was preempted by this other law that states Cities cannot adopt ordinances or resolutions setting standards or requirements regarding the sale or marketing of consumer merchandise that are different than the State regulations. So that is why there are no other specific standards for either brick and mortar sales or temporary sales included in the code amendments. Hektoen added that Des Moines also was sued, but the Court upheld their policy and therefore Iowa City is using a similar approach. Howard added this policy will assist with safety in that the having fireworks sales in only industrial areas will keep them away from supermarkets and residential neighborhoods. Parsons asked what avenues the City will use for public education explaining that use of the fireworks within city limits is not allowed, even though they can purchase them here. Howard said that was a challenge, but the City has a communications office the uses a lot of different methods to get the word out to the public. Signs stated he hopes part of the education this upcoming summer will be an emphasis on citations rather than warnings because the abuse was rampant. Freerks opened the public hearing. Seeing no one, Freerks closed the public hearing. Hensch moved to recommend approval of amendments to Title 14, Zoning, Chapter 4, Use Regulations and Article 14-213, Industrial and Research Zones, to restrict sales of consumer fireworks to Industrial Zones as described in the Staff report. Theobald seconded the motion. Signs is very pleased the City is doing this and reiterated his displeasure with how last summer went, it felt like fireworks were completely unregulated and the City had a difficult time enforcing due to the overwhelming use. A vote was taken and the motion passed 7-0. CONSIDERATION OF MEETING MINUTES: SEPTEMBER 21, 2017 Hensch moved to approve the meeting minutes of September 21, 2017. q� Prepared by: Susan Dulek, Asst. City Attorney, 410 E. Washington Street, Iowa City, IA 52240; 319-356-5030 ; ►Q►k0 Ordinance amending Title 17, entitled 'Building And Housing," Chapter 5, entitled "Housing Code," to establish a rental permit cap and to strengthen the minimum requirements for rental housing. Whereas, Iowa City, like many cities around the country, currently regulates occupancy based upon its definition of "family" and whether the occupants are or are not related by blood, marriage, adoption or placement by a social service agency; and Whereas, in April 2017 the State legislature adopted a law (HF 134) amending Iowa Code Section 414.1 to prohibit municipalities, after January 1, 2018, from adopting or enforcing any regulation or restriction related to occupancy of residential rental property that is based upon the existence of familial or nonfamilial relationships between the occupants of such rental property; and, Whereas, regulation of occupancy based on familial status has been an important tool to promote peaceful habitation in residential areas of Iowa City for more than 50 years, particularly in those neighborhoods impacted by their proximity to the University of Iowa campus and the pressures of the student rental market; and, Whereas, since at least the 1960s, maximum occupancy has been based on the number of unrelated persons and off-street parking; and, Whereas, over fifteen years ago, the City Council began closely considering issues related to the livability of neighborhoods, including the impact of the rental housing market in neighborhoods near the University of Iowa campus; and, Whereas, on October 23, 2001, the City Council established the Neighborhood Housing Relations Task Force in Resolution No. 01-353 consisting of representatives of owners, tenants, and neighborhoods to review nuisance laws and policies "to afford peaceful habitation in residential areas of Iowa City"; and, Whereas, on June 27, 2002, the Task Force submitted its 'Proposed Initiatives/Report of Task Force" ("2002 Task Force Report") to the City Council; and, Whereas, the 2002 Task Force Report begins with summarizing the reasons why the City Council established the Task Force, which include: "Mhe Neighborhood Council [an ad- hoc group consisting of representatives of neighborhood associations] also explored the efforts of other college communities to address the tensions that exist when long-term residents co- exist with significant, short-term rental populations. For example, the Neighborhood Council collected information on keg ordinances, couch ordinances, tenant information handbooks, and efforts to limit over occupancy."; and, Whereas, seven of the twenty-six recommended initiatives in the 2002 Task Force Report were directed at occupancy which resulted in the requirement that landlords and tenants acknowledge in writing the maximum occupancy of the unit (i.e., the Informational Disclosure and Acknowledgment Form) and the inclusion of the maximum occupancy on the face of the online rental permit; and, Whereas, one recommendation in the 2002 Task Force Report specifically addressed quality and livability of neighborhoods near the University of Iowa: "Direct City Manager to direct police to consider increased patrols of neighborhoods experiencing numerous disorderly house and criminal complaints, including, for example, foot patrols in near -downtown neighborhoods between 2-3 a.m. This proposal would help to stop problems before they happen."; and, Whereas, the Southwest District and Central District Plans, adopted in 2002 and 2008, respectively, as integral components of the City's Comprehensive Plan, set forth goals and objectives for addressing housing and quality of life issues in central city neighborhoods; and, Whereas, a goal of the Central District Plan is to continue to monitor and enforce the Neighborhood Nuisance Ordinance and to identify any additional quality of life issues that surface so that they can be addressed in a timely fashion through targeted code enforcement, mediation, education, or additional regulations; and, Whereas, it is a goal of the Central District Plan to work to achieve a healthy balance of rental and owner -occupied housing in the district's older neighborhoods to promote long-term investment, affordable housing opportunities, and preservation of historic homes and neighborhoods; and, Whereas, it is a goal of the Southwest District Plan to stabilize existing single family neighborhoods in order to provide the opportunity and encourage households of all types to live close to the University and downtown Iowa, including singles, families, university students and elderly populations; and, Whereas, it is a goal of the Southwest District Plan to balance the unique needs of university students with the goal of protecting existing housing that is suitable for families, singles, and older persons; and, Whereas, as one initiative to stabilize the older residential neighborhoods most impacted by the pressures of the student rental market in furtherance of the goals set forth in the Central District and Southwest District Plans to achieve a healthier balance of rental and owner - occupied housing, the City implemented the UniverCity Neighborhood Partnership Program, whereby run-down single-family rental properties are purchased by the City, rehabilitated, and sold as affordable owner -occupied housing for income -qualified buyers; and, Whereas, in recognition of the fact that over -occupancy of rental units is an issue that negatively impacts the quality, livability and value of neighborhoods, City Council has imposed the maximum penalty allowed by state law for a violation of the maximum occupancy requirements of the City Code; and, Whereas, the loss of this tool significantly threatens the stability of the City's central city neighborhoods closest to the University of Iowa and requires careful study of alternative options; and, Whereas, an illustration of this threat is that soon after House File 134's enactment the City received approximately 40 applications for building permits on existing single-family and duplex rental properties that would result in an increase in the number of bedrooms; and, Whereas, in previous years the City has received fewer than five such applications per year; and, Whereas, on June 13, 2017, the City Council in response to HF 134 established in Ordinance No. 17-4710 a moratorium on the issuance of new rental permits and building permits that enlarged rental dwellings in the central area of Iowa City that automatically will expire on January 1, 2018 to study how to mitigate the impacts of rental housing and increases in occupancy levels on neighborhood stability, housing affordability, public and tenant safety, urban congestion, blight, risk to public peace and order, conflicts between rental and owner - occupied housing, and excessive demands upon public safety, infrastructure and municipal services; and, Whereas, since passage of Ordinance No. 17-4710, the City has studied the relationship between concentrations of rental housing and neighborhood stability, quality, and livability and how best to address the negative impacts resulting from such concentrations; and, Whereas, Section 364.17(1) of the Iowa Code authorizes municipalities with a population of 15,000 or more to adopt one of five model housing codes by ordinance and Section 364.17(7) provides that a municipality's housing code provisions may be more stringent than those in the model code that it adopts; and, Whereas, the City of Iowa City adopted the housing quality standards promulgated by the U.S. Dept. of Housing and Urban Development for use in assisted housing programs as its first housing code in 1980 along with more stringent provisions, and its current housing code continues to be that model along with additional more stringent provisions to protect the welfare and enhance the safety of tenants as well as owner -occupants; and, Whereas, Section 364.17(3) requires a municipality that has a housing code to adopt enforcement procedures; and, Whereas, the Iowa Supreme Court has stated: The power to enforce housing codes relating to health and safety is traditionally among the core responsibilities of municipal government. Lewis v. Jaeger, 818 N.W.2d 165 (Iowa 2012); and, Whereas, over the years, many single-family homes in the neighborhoods surrounding the University of Iowa campus have been converted from owner occupied to rental; and, Whereas, a review of the literature including the 2012 study conducted by Hoisington Koegler Group Inc. for the City of Winona, Minnesota and the September 2016 City of North Mankato, Minnesota 'Rental Density Study' reveals the following: 1. Many university towns face the problem of large numbers of single-family housing beinc converted to rental housing within single-family neighborhoods. 2. Owner occupied homes are generally better maintained than short term rental homes. 3. Over concentrations of rental housing have negative impacts on surrounding residential properties and neighborhoods in general, including noise, increased traffic, litter, illegal parking, inadequate property maintenance, and a general decrease in the quality of life for permanent residents of the neighborhood. The negative impacts typically fall into three categories (increased nuisance and property maintenance complaints, increased City Code violations and police citations, decreased property values) and thus are physical, economic and social, ultimately contributing to decreases in the quality and livability of neighborhoods. 4. Empirical studies in college towns with pressures created by the student housing market similar to those in Iowa City such as Gainesville, Florida (home of the University of Florida); State College, Pennsylvania (home of Penn State University); College Park, Maryland (home of the University of Maryland); Cumberland, Maryland; and Chapel Hill, North Carolina (home of the University of North Carolina) , Winona, MN (home of Minnesota State Winona) and North Mankato, MN (near Minnesota State Mankato campus) identify a link between the concentration of rental housing and increases in nuisance complaints, code violations and police incidents. 5. Because such violations negatively affect neighborhood quality and livability, a concentration of rental housing results in negative impacts to the quality and livability of residential neighborhoods.; and, Whereas, to address the increasing rates of conversions of single-family homes from owner occupied to rental in neighborhoods proximate to college campuses and the negative impacts resulting from such concentrations of rental housing, several Minnesota cities have adopted rental density ordinances that limit the percentage of rentals in prescribed areas; and, Whereas, the City of Winona, Minnesota, for instance, limits the number of rental properties to 30% of lots per residential block in all residential zones but one; and, Whereas, the Minnesota Court of Appeals upheld a challenge brought by landlords to the Winona "30% rule" finding, in part, that Winona's ordinance that limited to 30% the number of lots on a block eligible to obtain a new rental permit was a proper exercise of a city's police power and did not run afoul of the constitutional tenets of equal protection and due process. Dean v. City of Winona, 843 N.W.2d 249 (Minn. Ct. App. 2014); and, Whereas, the fall 2016 student enrollment at the University of Iowa was 32,011 (undergraduate, graduate, and professional) with the University of Iowa providing housing for 7,942 students by means of dormitories, fraternities/sororities, University owned units, and University leased units; and, Whereas, in the fall of 2016, the University of Iowa provided housing for approximately 25% of the students, which meant approximately 24,000 students needed to secure non - University providing housing during the 2016-2017 academic year; and, Whereas, the fall 2017 student enrollment at the University of Iowa is 33,564 (undergraduate, graduate, and professional); and, Whereas, although the University of Iowa opened a new dormitory (Catlett Hall) in the fall of 2017, it also leased fewer units on the private market such that it still provides only approximately 28% of the housing for University of Iowa students, which means that approximately 24,000 students needed to secure non -University provided housing in August 2017; and, Whereas, the City has mapped the location of police calls for service for loud parties, noise complaints, and fireworks during the time period from January 1, 2013 through September 9, 2016 and nuisance complaints submitted through ICGovExpress from April 19, 2013 to March 30, 2017; and, Whereas, from this mapping of nuisance and noise complaints, a "heat map" was created that illustrates the relative concentrations of nuisance and noise complaints across the City; and, Whereas, this heat map shows that there is a higher concentration of nuisance and noise complaints in the central City neighborhoods close to the University of Iowa campus; Whereas, this data is consistent with the findings from other university communities that have studied these neighborhood stabilization issues; and, Whereas, the City has established 29 open space districts ("districts") to ensure smaller, specified geographic areas have adequate usable open space, parks, and recreational facilities to serve residents within a neighborhood; and, Whereas, the boundaries of these districts follow logical neighborhood edges, such as busy streets, railway lines, a river, creeks, and other natural barriers; and, Whereas, it is reasonable to measure other important aspects of neighborhood health and stability using these already established neighborhood boundaries, as further refined based on the more specific goals and objectives regarding neighborhood stabilization set forth in the Central District Plan for the area described and delineated as Sub-Area A and to acknowledge the boundaries of the Riverfront Crossings District; all of these elements of the City's Comprehensive Plan being adopted subsequent to the creation of the open space districts; and, Whereas, the neighborhoods commonly known as "Goosetown" and "Deweyville" have a similar rental pattern, similar era of homes, similar zoning, and eligibility for the UniverCity Neighborhood Partnership program, it is reasonable to combine these neighborhoods with the Northside Rental Permit District; and Whereas, most of the remaining Hickory Hill Rental Permit District is park, cemetery, Regina Education Center, multi-family development along 15t Avenue and small isolated subdivisions unconnected to neighborhoods to the west or to the City High area to the south and distant from the University campus, it is not necessary to include these areas within the Rental Impact Area; and, Whereas, since the single -family neighborhood directly north of Rochester Avenue and west of Regina Education Center is consistent with the City High Rental Permit District south of Rochester Avenue, it is reasonable to include it with that district; and, Whereas, the UniverCity Neighborhood Partnership program boundaries include the east side of S. Governor Street; and, Whereas, the UniverCity Neighborhood Partnership program boundaries also correspond to a zoning boundary between the RS-5 zoning along both sides of Summit Street to the RS-8 and RNS-12 boundaries to the west in the Governor/Lucas neighborhood; and, Whereas, there is a conservation district that covers both sides of S. Governor Street that is distinct from the Summit Street Historic District; and, Whereas, there have been at least 2 downzonings in this S. Governor Street area to stabilize the neighborhood and to prevent further densification; and, Whereas, based on the UniverCity Neighborhood Partnership boundaries, the recent downzonings on S. Governor Street, and the conservation district boundaries, it is reasonable to include the east side of S. Governor Street within the Bowery Rental Permit District; Whereas, the City has mapped each district showing the percentage of single-family and duplex units with a rental permit as of July 2017; and, Whereas, a comparison of the heat map of nuisance and noise complaints and the map showing the relative concentration of single-family and duplex rentals by neighborhood districts indicates that there is a correlation between the districts with the highest concentration of single- family and duplex rental units and the neighborhood districts with a widespread concentration of nuisance complaints and calls for service for loud parties, noise complaints, and fireworks; and, Whereas, based on previous neighborhood stabilization efforts pursuant to adopted goals and objectives of the City's Comprehensive Plan, the literature review, including the empirical studies in other cities, and the findings of the City's mapping, the City Council concludes that the concentration of rental housing in areas impacted by the housing market created by the University of Iowa results in increased levels of nuisance and police complaints; that these violations are indicators of increased nuisances and decreased property maintenance levels that negatively affect neighborhood quality, livability and stability; and, that therefore, the concentration of rental housing in areas impacted by the University leads to decreased neighborhood quality, livability and stability, which will be exacerbated by the loss of an important tool to control occupancy; and, Whereas, six districts close to the University with the highest nuisance and noise complaints are also those with the highest percentage of single-family and duplex rental units, with the highest being 76.1% and the lowest being 54.0%; and, Whereas, beyond these districts closest to the University there are districts with rental percentages of single-family and duplex units as high as approximately 28% that are not showing the similar high levels of nuisance and noise complaints and thus can be characterized as healthy and stable; and, Whereas, if the six districts with the largest concentration of single-family and duplex rental units are prohibited from increasing the number of rental permits for single-family and duplex units, it is reasonable to assume that real estate investors, current Iowa City rental property owners, parents of University students, and others will look to neighborhoods in adjacent districts to purchase single-family homes and duplexes to convert from owner - occupied housing into rental housing to serve the housing market created by the University of Iowa, and that the negative impacts demonstrated in the districts closest to the University will spread to the next ring of districts that are reasonably capable of serving the student rental market ("Impact Area"); and, Whereas, in light of the above findings, the Council determines that there is a tipping point in the Rental Impact Area somewhere between a concentration of 28% of single-family and duplex rental units and a concentration of 54% single-family and duplex rental units where nuisance and noise complaints reach a level that compromises the health and stability of the subject neighborhood districts, and accordingly, it is reasonable to place the cap on rental permits in districts to prevent the concentration of single-family and duplex rental units from exceeding 30%; and, Whereas, to ensure a minimum amount of the dwelling unit is being used as common space, to prevent property owners from using dining rooms, living rooms, and other areas as bedrooms that would lead to overcrowding and little shared living space within the home, and to mitigate the negative impacts of single-family houses being over occupied and used as de facto rooming houses, no more than 35% of the finished floor area of a dwelling should be bedrooms, and a minimum proportional amount of shared living space should be provided within each dwelling unit based on the number of bedrooms within the unit; and, Whereas, to discourage existing rental units, particularly single-family and duplex rentals, from being chopped up to increase the number of bedrooms, while reducing the overall quality of the living space within the home, and to ensure a more livable bedroom standard for future rentals, the minimum bedroom size for new rental units and for new bedrooms in existing rental units should be 100 square feet; and, Whereas, because single-family houses and duplexes are not designed for high rental occupancy, interconnected smoke alarms should be required for new rental units with four or more bedrooms and for existing rentals that add bedrooms; and, Whereas, to prevent duplex units from functioning as one large rooming house, to increase life safety, and to increase privacy, duplex units should be permanently separated; and, Whereas, as requested by the University of Iowa Student Government, all units should have a deadbolt lock for safety purposes; and, Whereas, because the number of unrelated persons living in single-family homes will likely increase with no limit on the number of occupants based on familial relationship and because single-family houses and duplexes are not designed for high rental occupancy, owner occupied properties with more than one renter should be required to have a rental permit to improve safety and to ensure housing code requirements are met in higher occupancy rental properties; and, Whereas, to address property owners and tenants who repeatedly fail to abide by the City's nuisance code, noise -related code provisions, and other provisions that impact the safety, peacefulness, public order, and stability of neighborhoods, the rental permit sanction provisions should be strengthened; and, Whereas, to ensure open space for the use and enjoyment of tenants, new paving of backyards in single-family and duplex rentals should be limited to the rear twenty (20) feet; and, Whereas, it is in the City's best interest to adopt this ordinance. Now, therefore, be it ordained by the City Council of the City of Iowa City, Iowa: Section I. Amendments. 1. Title 17, entitled "Building and Housing," Chapter 5, entitled "Housing Code," Section 3, entitled, "Definitions," is amended by deleting the definition of "family" and adding new definitions of "accessory dwelling unit," "bedroom/sleeping room," and "shared living space" as follows: ACCESSORY DWELLING UNIT: A temporary dwelling unit that is accessory to an owner - occupied single-family dwelling or duplex. BEDROOM/SLEEPING ROOM: A habitable room within a dwelling used or intended to be used for sleeping. Minimum size requirements for bedrooms are set forth in sections 17-5-17 and 17- 5-18 of this Chapter. SHARED LIVING SPACE: Any habitable room or group of adjoining habitable rooms, not including bedrooms, located within a Household Living Use, as defined in Title 14 of this Code. 2. Title 17, entitled "Building and Housing," Chapter 5, entitled "Housing Code," Section 3, entitled, "Definitions," is amended by deleting the definitions of "habitable room," "rental permit," "roomer," "rooming house," "rooming unit," and "to let" and substituting in lieu thereof the following definitions HABITABLE ROOM: A room or enclosed floor space within a dwelling having a minimum of seventy (70) square feet of total floor area with not less than seven feet (7') in any horizontal dimension, used or intended to be used for living, sleeping, cooking or eating purposes, excluding bathrooms, toilet rooms, pantries, laundries, foyers, communicating corridors, closets, storage spaces, stairways and recreation rooms in basements (see definition of Recreation Room In Basement). Notwithstanding the foregoing, bedrooms must meet the dimensional requirements as set forth in sections 17-5-17 and 17-5-18 of this Code. RENTAL PERMIT: A document, issued periodically, which grants the owner or operator the option of letting a dwelling, dwelling unit, rooming unit, or Type III dwelling unit for rental purposes and showing that the dwelling, dwelling unit, rooming unit, or Type III dwelling unit for which it is issued was in compliance with the applicable provisions of this chapter at the time of issuance. ROOMER: An occupant of a rooming unit who is not an owner occupant ROOMING HOUSE: Any dwelling containing two (2) or more rooming units or type III dwelling units, in which space is let by the owner or operator to four (4) or more roomers. Occupants of units specifically designated as type III dwelling units within a rooming house shall be included in the roomer count. Any dwelling with a combination of dwelling units, rooming units, and Type III dwelling units is considered a nonconforming rooming house. A rooming house is classified as an Independent Group Living Use in Title 14 of this Code. ROOMING UNIT: Any habitable room or group of adjoining habitable rooms located within a Group Living Use, as defined in Title 14 of this Code, and forming a single private unit with facilities which are used or intended to be used by a roomer or roomers for living and sleeping, but not cooking. TO LET: The granting, either in writing or orally, by the owner or operator to another the right to possess a dwelling, a dwelling unit, a rooming unit, or a Type III dwelling unit. 3. Title 17, entitled 'Building and Housing," Chapter 5, entitled "Housing Code," Section 16, entitled, "Certificate of Structure Compliance and Rental Permit" is amended by deleting Subsection A in its entirety and substituting in lieu thereof the following Subsection A: A. Certificate And Permit Required For Rental Property: It shall be a violation of this code for any person to let to another any dwelling, dwelling unit, duplex, multiple dwelling, rooming unit, Type III dwelling unit, or rooming house, except the owner occupant who lets to no more than one tenant, unless: 1. The owner or operator holds a valid certificate of structure compliance, issued by the City, applicable to those portions of the specific structure used for residential rental purposes. 2. The owner or operator holds a valid rental permit, issued by the City in the name of the owner or operator, applicable to those portions of the specific structure used for residential rental purposes. The one tenant exception provided herein is limited to one tenant per dwelling unit regardless of the number of owner occupants. By way of illustration, if there are two owner occupants in a single-family dwelling, a rental permit is required if there are two or more tenants. 4. Title 17, entitled 'Building and Housing," Chapter 5, entitled "Housing Code," Section 16, entitled, "Certificate of Structure Compliance and Rental Permit' is amended by deleting Subsection C, paragraph 4 in its entirety and substituting in lieu thereof the following Subsection C, paragraph 4: 4. Expiration Of Permit; Extensions: Rental permits shall be valid through the expiration date contained thereon. However, extensions shall be granted to cover any time period between the stated expiration date and the period of time permitted by the inspector to remedy any violations cited subsequent to a maintenance inspection, provided a rental application is on file with fees paid, up to a maximum of 12 months. 5. Title 17, entitled 'Building and Housing," Chapter 5, entitled "Housing Code," Section 16, entitled, "Certificate of Structure Compliance and Rental Permit' is amended adding the following new Subsection C, paragraphs 5c and 8d: 5c. Effective July 1, 2018, the twelve (12) month period of time in Subsection 17-5- 16C5b shall be twenty-four (24) months. 8d. Effective July 1, 2018, the twelve (12) month period of time in Subsections 17-5- 16C8a, b, and c shall be twenty-four (24) months. 6. Title 17, entitled "Building and Housing," Chapter 5, entitled "Housing Code," Section 16, entitled, "Certificate of Structure Compliance and Rental Permit" is amended adding the following new Subsection C, paragraph 13: 13. The City may issue a temporary rental permit for a maximum of twenty-four (24) months if the owner is an individual: (a) (1) who has been occupying the dwelling; (2) who intends to return to the dwelling; and (3) whose absence is due to a sabbatical, an extended vacation, spending winter months in a warmer climate, military service, a volunteer commitment, employment, or substantially similar reason; or (b) who occupied the dwelling at the time of death and the owner's heir(s) occupies or intends to occupy the dwelling. 7. Title 17, entitled "Building and Housing," Chapter 5, entitled "Housing Code," Section 16, entitled, "Certificate of Structure Compliance and Rental Permit" is amended adding the following new Subsection E, entitled "Rental Permit Cap" and inserting Figure 17-1, Rental Impact Area Map, attached and incorporated herein: E. Rental Permit Cap 1. Definitions: Rental Impact Area means the geographic area delineated as such on the Rental Impact Area Map in Figure 17-1. Rental Permit District means the geographic districts labelled and delineated on the Rental Impact Area Map in Figure 17-1. 2. Within the Rental Impact Area, the City shall not issue a rental permit for any single- family dwelling or duplex in a Rental Permit District where the percentage of single- family dwellings and duplex units that have rental permits exceeds 30% of the total number of single-family and duplex units within said rental permit district, except as provided herein. This limit shall be known as the rental permit cap. 3. Exceptions to the rental permit cap: a. Dwelling with a rental permit on the effective date of this section. b. Dwelling with a rental permit that expired after December 13, 2015 if a renewed rental permit is issued before July 1, 2018. c. Existing legally nonconforming single-family dwellings and duplex units located within a zoning district where single-family dwellings and duplex units are not an allowed use. d. Accessory dwelling units. e. Owner -occupied duplexes, where the owner occupies one unit and leases out the second unit. f. Approved bed and breakfast homestays and inns. g. Dwelling with a temporary rental permit. h. Group Household as defined in Title 14 of this Code. I. A new single-family dwelling or duplex if a building permit was issued before June 13, 2017. j. An existing single-family dwelling or duplex if a building permit was issued after December 13, 2015 and before June 13, 2017. 4. Notwithstanding any other provision of this chapter, the Board of Appeals does not have the authority to grant an exception, variance, or any other relief to the rental permit cap. 8 8. Title 17, entitled 'Building and Housing," Chapter 5, entitled "Housing Code," Section 17, entitled, "Minimum Structure Standards for All Dwellings," is amended by deleting Subsection K, paragraphs 1 and 2, and substituting in lieu thereof the following Subsection K, paragraph 1 (no paragraph 2): K. Minimum Space, Use And Location Requirements: 1. Floor Area Per Occupant: a. Every dwelling unit shall contain at least one hundred twenty (120) square feet of habitable floor space for the first occupant thereof and at least one hundred (100) additional square feet of habitable floor space for every additional occupant thereof. b. The floor area of that part of a room where the ceiling height is less than five feet (5) shall not be considered when computing the total floor area of the room. 9. Title 17, entitled 'Building and Housing," Chapter 5, entitled "Housing Code," Section 18, entitled, "Minimum Structure Standards for All Rental Housing," is amended by renumbering Subsection D as paragraph 1 and adding the following new Subsection D, paragraph 2: D2. Newly constructed dwellings with four (4) or more bedrooms shall have interconnected smoke alarms (hardwired or wireless). Existing dwellings that add one (1) or more bedrooms shall have interconnected smoke alarms (hardwired or wireless). 10. Title 17, entitled 'Building and Housing," Chapter 5, entitled "Housing Code," Section 18, entitled, "Minimum Structure Standards for All Rental Housing," is amended by adding the following new Subsections L, M. N, O, P, Q and R: L. Bedrooms cannot exceed 35 percent (35%) of the finished floor area of a single-family dwelling or duplex unit, not including floor area of a recreation room in the basement. This dimensional requirement is subject to administrative review. M. Bedrooms shall have a minimum of one hundred (100) square feet of total floor area. The floor area of that bedroom where the ceiling height is less than five feet (5) shall not be considered when computing the total floor area of the bedroom. These dimensional requirements are subject to administrative review. Any lawful bedroom/sleeping room greater than or equal to seventy (70) square feet in existence prior to January 1, 2018 may continue to be used as a bedroom/sleeping room. However, if and when it is brought into compliance with the current minimum dimensional requirements, it may not be converted back to a substandard size. N. Within Household Living Uses, as defined in Title 14 of this Code, a minimum of 100 square feet of shared living space shall be provided for every bedroom within the dwelling unit. By way of illustration, for a two-bedroom single-family dwelling, there must be at least 200 square feet of shared living space within the dwelling. Any lawful dwelling unit in existence prior to January 1, 2018 that is not in compliance with this provision may continue as currently configured. However, if and when the shared living space is brought into compliance with the current minimum dimensional requirements, it may not be converted back to a substandard size. Any change that would increase the noncompliance with this provision is not allowed. This dimensional requirement is subject to administrative review. O. The two (2) dwelling units of a duplex must be physically and permanently separated, and the separation must be continually maintained. By way of illustration, a duplex shall not have a door that opens from one duplex unit directly into the other duplex unit. P. Every dwelling unit and rooming unit shall have a deadbolt lock that can be operated from inside and locked from the outside. "Deadbolt" means a locking mechanism where the bolt cannot be moved to an open position except by rotating the locked cylinder. Q. After November 21, 2017, an improved surface shall not be constructed, installed, or established on the rear yard of a single-family dwelling or a duplex, except within the first 20 feet of lot depth as measured from the rear lot line and setback at least 5 feet from abutting properties. The remainder of the rear yard shall remain landscaped open space, free of impervious surface. This provision shall not apply to allowed accessory structures. Rear yard shall have the meaning as defined in Title 14 of this Code. Improved surface means asphaltic cement concrete, Portland cement concrete, manufactured paving materials (such as brick), or similar hard surface. R. In an administrative review, the Director or designee may grant a minor adjustment to the dimensional requirement if in conformance with the purposes of this chapter. Minor adjustments shall be noted in the property file maintained by the Neighborhood and Development Services Department. Section II. Repealer. All ordinances and parts of ordinances in conflict with the provision of this Ordinance are hereby repealed. Section III. Severability. If any section, provision or part of the Ordinance shall be adjudged to be invalid or unconstitutional, such adjudication shall not affect the validity of the Ordinance as a whole or any section, provision or part thereof not adjudged invalid or unconstitutional. Section IV. Effective Date. This Ordinance shall be effective January 1, 2018. Passed and approved this day of Mayor Attest: City Clerk IL: 2017. App ove y City Attorney's Office Figure 17-1. Rental Impact Area Map i ssr Foster Road �• 5ST ., >� City Park �• i •• Ny e HWYS y�S NAW7(INSOR 2 w � OGRAND AVE MELR_ __i MELR EAVE I Melrose / Brookland / Emerald Roosevelt West High NT Miller / FO Mayflower / Shimek oo° Dubuque Road m l y Northside N / 0O a w 2 ROCHESTER AV MARKETST �FFERSQNST College Green City High w COURT N O D N Riverfront Bowery i ;Crossings East y 9ryH F9 2 Longfellow KWOODAVE 01 011, Orchard ET RD Riverfront Willow Creek Crossings West Ato �. . �� . e�w ���' �• i�z 'lpRMpN6KStro 11411, . Mark Twain O in �Y Legend QRental Impact Area QRental Permit Districts ... Iowa City City Limits o Upper 10001Ralston Creek Grant Wood Hill / Lei Court I / Luc Ordinance No. Page It was moved by and seconded by _ Ordinance as read be adopted, and upon roll call there were: AYES: NAYS: ABSENT: ABSTAIN: Botchway Cole Dickens Mims Taylor Thomas Throgmorton First Consideration 11/21/17 Voteforpassage: AYES: Mims, Taylor, Thomas, Throgmorton, Botchway, Cole, Dickens. NAYS: None. ABSENT: None. Second Consideration _ Vote for passage: Date published that the 1� Prepared by: Susan Dulek, Asst. City Attorney, 410 E. Washington Street, Iowa City, IA 52240; ORDINANCE NO. Ordinahve amending Title 17, entitled "Building And Ho ing," Chapter 5, entitle "Housing Code," to establish a rental p mit cap and to strengthen tke minimum requirements for rental hous' g. Whereas, Iowa City, like many cities around the country, c rrently regulates occupancy based upon its definitio of "family" and whether the occupants a or are not related by blood, marriage, adoption or pla ement by a social service agency;a Whereas, in April 017 the State legislature adopte a law (HF 134) amending Iowa Code Section 414.1 to prohl it municipalities, after January , 2018, from adopting or enforcing any regulation or restriction lated to occupancy of re ' ential rental property that is based upon the existence of familial nonfamilial relationship between the occupants of such rental property; and, Whereas, regulation of occ promote peaceful habitation in resi in those neighborhoods impacted pressures of the student rental mai based on f milial status has been an important tool to areas of I we City for more than 50 years, particularly r proxim y to the University of Iowa campus and the Whereas, since at least the 196 , max of unrelated persons and off-street parkin ; a Whereas, over fifteen years ago, e related to the livability of neighborhoods, ' lu neighborhoods near the University of low ca Whereas, on October 23, 2001, a Ci Relations Task Force in Resolution No. 1-353 occupancy has been based on the number City Council began closely considering issues Jing the impact of the rental housing market in )us; and, Council established the Neighborhood Housing insisting of representatives of owners, tenants, and neighborhoods to review nuisa ce laws a d policies "to afford peaceful habitation in residential areas of Iowa City"; and, Whereas, on June 27, 2002 the Task Force ubmitted its "Proposed Initiatives/Report of Task Force" ("2002 Task Force R ort") to the City Co ncil; and, Whereas, the 2002 Task orce Report begins w h summarizing the reasons why the City Council established the Ta Force, which include: T]he Neighborhood Council [an ad- hoc group consisting of repres ntatives of neighborhood a ociations] also explored the efforts of other college communities address the tensions that e t when long-term residents co- exist with significant, short -t m rental populations. For exam e, the Neighborhood Council collected information on ke ordinances, couch ordinances, ten nt information handbooks, and efforts to limit over occup cy."; and, Whereas, seven of the twenty-six recommended initiati s in the 2002 Task Force Report were directed at ccupancy which resulted in the requireme t that landlords and tenants acknowledge in writin the maximum occupancy of the unit (i.e., th Informational Disclosure and Acknowledgme Form) and the inclusion of the maximum occu ancy on the face of the online rental permit and, Whereas, a recommendation in the 2002 Task Force Report pecifically addressed quality and livability of neighborhoods near the University of Iowa: "Direct ty Manager to direct police to consider increased patrols of neighborhoods experiencing numero s disorderly house and criminal complaints, including, for example, foot patrols in near-downto n neighborhoods between 2-3 a.m. This proposal would help to stop problems before they happ n."; and, Whereas, the Southwest District and Central District Plans, adopted in 2002 and 2008, respectively, as integral components of the City's Comprehensive Plan, set forth goals and objectives for addressing housing and quality of life issues in central city neighborh ods; and, Whereas, a goal of the Central District Plan is to continue to monitor d enforce the Neighborhood Nuisance Ordinance and to identify any additional quality life issues that surface so at they can be addressed in a timely fashion through targete code enforcement, mediation, a cation, or additional regulations; and, Wherea it is a goal of the Central District Plan to work to achi e a healthy balance of rental and owne ccupied housing in the district's older neighborh ds to promote long-term investment, affor le housing opportunities, and preservati of historic homes and neighborhoods; and, Whereas, it is goal of the Southwest District Plan t stabilize existing single family neighborhoods in order t rovide the opportunity and encour ge households of all types to live close to the University an owntown Iowa, including singl , families, university students and elderly populations; and, Whereas, it is a goal f the Southwest District Ian to balance the unique needs of university students with the go 1 of protecting existin housing that is suitable for families, singles, and older persons; and, Whereas, as one initiative t stabilize the old residential neighborhoods most impacted by the pressures of the student rent market in fu erance of the goals set forth in the Central District and Southwest District Plan to achiev a healthier balance of rental and owner - occupied housing, the City implement the U iverCity Neighborhood Partnership Program, whereby run-down single-family rental p perti s are purchased by the City, rehabilitated, and sold as affordable owner -occupied housing or ncome-qualified buyers; and, Whereas, in recognition of the fact t t over -occupancy of rental units is an issue that negatively impacts the quality, livability an v lue of neighborhoods, City Council has imposed the maximum penalty allowed by state law for a violation of the maximum occupancy requirements of the City Code; and, Whereas, the loss of this tool si ificantly reatens the stability of the City's central city neighborhoods closest to the University of Iowa and equires careful study of alternative options; and, Whereas, an illustration of th' threat is that so n after House File 134's enactment the City received approximately 40 ap lications for buildin permits on existing single-family and duplex rental properties that would esult in an increase in a number of bedrooms; and, Whereas, in previous yea the City has received f er than five such applications per year; and, Whereas, on June 13, 2 17, the City Council in respon to HF 134 established in Ordinance No. 17-4710 a mor orium on the issuance of new re al permits and building permits that enlarged rental d ellings in the central area of Iowa 'ty that automatically will expire on January 1, 2018 t study how to mitigate the impacts of r tal housing and increases in occupancy levels on nei borhood stability, housing affordability, blic and tenant safety, urban congestion, blight, r' k to public peace and order, conflicts betw n rental and owner - occupied housing, and a cessive demands upon public safety, infrastru ture and municipal services; and, Whereas, sinc passage of Ordinance No. 17-4710, the City has s died the relationship between concentrati ns of rental housing and neighborhood stability, qua[ , and livability and how best to addres the negative impacts resulting from such concentrations and, Whereas, S ction 364.17(1) of the Iowa Code authorizes municipalitie with a population of 15,000 or more to adopt one of five model housing codes by ordinance and ection 364.17(7) provides that a municipality's housing code provisions may be more stringent than those in the model code that it adopts; and, 2 Whereas, the City of Iowa City adopted the housing quality s stands promulgated by the U.S. Dept. of Housing and Urban Development for use in assisted h sing programs as its first housing code in 1980 along with more stringent provisions, and it current housing code continues to be that model along with additional more stringent prov' ions to protect the welfare and enhance toe safety of tenants as well as owner -occupants; a , Wherea , Section 364.17(3) requires a municipality that as a housing code to adopt enforcement pro edures; and, Whereas, a Iowa Supreme Court has stated: The wer to enforce housing codes relating to health an safety is traditionally among the core esponsibilities of municipal government. Lewis v. aeger, 818 N.W.2d 165 (Iowa 201 );and, Whereas, over a years, many single-family ho es in the neighborhoods surrounding the University of Iowa ca pus have been converted from owner occupied to rental; and, Whereas, a review f the literature including t e 2012 study conducted by Hoisington Koegler Group Inc. for the i of Winona, Minneso and the September 2016 City of North Mankato, Minnesota 'Rental ensity Study' revea the following: 1. Many university towns ce the problem f large numbers of single-family housing being converted to rental housi within single family neighborhoods. 2. Owner occupied homes ar generally I tter maintained than short term rental homes. 3. Over concentrations of rent housing ave negative impacts on surrounding residential properties and neighborhood in ge ral, including noise, increased traffic, litter, illegal parking, inadequate property m int Hance, and a general decrease in the quality of life for permanent residents of the n ' borhood. The negative impacts typically fall into three categories (increased nuis a and property maintenance complaints, increased City Code violations and police at ns, decreased property values) and thus are physical, economic and social, Itima ly contributing to decreases in the quality and livability of neighborhoods. 4. Empirical studies in college t wns with p ssures created by the student housing market similar to those in Iowa City uch as Gain ville, Florida (home of the University of Florida); State College, Pe nsylvania (hom of Penn State University); College Park, Maryland (home of the Un' ersity of Marylan ; Cumberland, Maryland; and Chapel Hill, North Carolina (home of a University of Nort Carolina) , Winona, MN (home of Minnesota State Win and North Mankato, (near Minnesota State Mankato campus) identify a link etween the concentration f rental housing and increases in nuisance complaints, de violations and police in ents. 5. Because such violati s negatively affect neighborh d quality and livability, a concentration of rent I housing results in negative imp cts to the quality and livability of residential neighbor oods.; and, Whereas, to addre s the in rates of conversions f single-family homes from owner occupied to rental' neighborhoods proximate to college c puses and the negative impacts resulting from s ch concentrations of rental housing, sever I Minnesota cities have adopted rental density rdinances that limit the percentage of rental in prescribed areas; and, Whereas, the ity of Winona, Minnesota, for instance, limits th number of rental properties to 30% of is per residential block in all residential zones b one; and, Whereas, th Minnesota Court of Appeals upheld a challenge br ught by landlords to the Winona "30% r _"finding, in part, that Winona's ordinance that limite to 30%the number of lots on a block a igible to obtain a new rental permit was a proper exerci a of a city's police power and did not run afoul of the constitutional tenets of equal protection a d due process. Dean v. City of Wi ona, 843 N.W.2d 249 (Minn. Ct. App. 2014); and, Whereas, the fall 2016 student enrollment at the University of Iowa was 32,011 (undergraduate, graduate, and professional) with the University of Iowa providing housing for 7,942 students by means of dormitories, fraternities/sororities, University owned units, and University leased units; and, 3 Whereas, in the fall of 2016, the University of Iowa provided housing for approximately 25% of the students, which meant approximately 24,000 students needed to secure no = University providing housing during the 2016-2017 academic year; and, Wh eas, the fall 2017 student enrollment at the University of Iowa is 33,56 (undergradu , graduate, and professional); and, Where: , although the University of Iowa opened a new dormitory (C eft Hall) in the fall of 2017, it aIs leased fewer units on the private market such that it still ovides only approximately 2810 f the housing for University of Iowa students, which eans that approximately 24,00 students needed to secure non -University provid housing in August 2017; and, Whereas, the Cit has mapped the location of police calls fo ervice for loud parties, noise complaints, and fire rks during the time period from Janua 1, 2013 through September 9, 2016 and nuisance comp ints submitted through ICGovExpr s from April 19, 2013 to March 30, 2017; and, Whereas, from this ma ing of nuisance and noise c plaints, a "heat map" was created that illustrates the relativ concentrations of nuisan and noise complaints across the City; and, Whereas, this heat map sho s that there is a hig er concentration of nuisance and noise complaints in the central City n ighborhoods clo to the University of Iowa campus; Whereas, this data is consiste with the findi s from other university communities that have studied these neighborhood stabi ation issue ; and, Whereas, the City has establishe 29 ope pace districts ("districts') to ensure smaller, specified geographic areas have adequat usabl open space, parks, and recreational facilities to serve residents within a neighborhood; a d, Whereas, the boundaries of these dis ' is follow logical neighborhood edges, such as busy streets, railway lines, a river, creeks, an ther natural barriers; and, Whereas, it is reasonable to measur of er important aspects of neighborhood health and stability using these already establish nei borhood boundaries, as further refined based on the more specific goals and objectives egardin neighborhood stabilization set forth in the Central District Plan for the area describ d and deli ated as Sub -Area A and to acknowledge the boundaries of the Riverfront Crossi gs District; al of these elements of the City's Comprehensive Plan being adopted s bsequent to the reation of the open space districts; and, Whereas, the neighborhoods ommonly known "Goosetown" and "Deweyville" have a similar rental pattern, similar era of omes, similar zoning, nd eligibility for the UniverCity Neighborhood Partnership progra , it is reasonable to cc ine these neighborhoods with the Northside Rental Permit District; nd Whereas, most of the re aining Hickory Hill Rental Pe it District is park, cemetery, Regina Education Center, mul '-family development along 11 A nue and small isolated subdivisions unconnected to eighborhoods to the west or to the ity High area to the south and distant from the Univers' y campus, it is not necessary to include these areas within the Rental Impact Area; and, , Whereas, since the single-family neighborhood directly north of Rochester Avenue and west of Regina Education Center is consistent with the City High Rental Permit District south of Rochester Avenue, it is reasonable to include it with that district; and, Whereas, the UniverCity Neighborhood Partnership program boundaries include the east side of S. Governor Street; and, Whereas, th UniverCity Neighborhood Partnership program boundaries also correspond to a zo ing boundary between the RS -5 zoning along both sides of Summit Street to the RS -8 and RN -12 boundaries to the west in the Governor/Lucas neighborhood; and, Whereas, there is a conservation district that covers both sides of S. Governor Street that is distinct from the Summit Street Historic District; and, 4 Whereas, there have been at least 2 downzonings in this S. Governor Street a a to stabilize the neighborhood and to prevent further densification; and, Whereas, based on the UniverCity Neighborhood Partnership boundaries he recent downzonings on S. Governor Street, and the conservation district boundaries, ' is reasonable to include the east side of S. Governor Street within the Bowery Rental Permit istrict; Where the City has mapped each district showing the percenta of single-family and duplex units with rental permit as of July 2017; and, Whereas, a mparison of the heat map of nuisance and nois complaints and the map showing the relative c centration of single-family and duplex rent by neighborhood districts indicates that there is a rrelation between the districts with the ghest concentration of single- family and duplex rental u 'ts and the neighborhood districts wi a widespread concentration of nuisance complaints and ca for service for loud parties, not complaints, and fireworks; and, Whereas, based on pr ious neighborhood stabilize 'on efforts pursuant to adopted goals and objectives of the City' Comprehensive Plan, th literature review, including the empirical studies in other cities, a the findings of the y's mapping, the City Council concludes that the concentration of Mal housing in as impacted by the housing market created by the University of Iowa res is in increase evels of nuisance and police complaints; that these violations are indicators of in reased nui ances and decreased property maintenance levels that negatively affect neighborhoo quality ivability and stability; and, that therefore, the concentration of rental housing in areas im act by the University leads to decreased neighborhood quality, livability and stability, ich will be exacerbated by the loss of an important tool to control occupancy; and, Whereas, six districts close to the ive ity with the highest nuisance and noise complaints are also those with the highes perce age of single-family and duplex rental units, with the highest being 76.10Y( and the to est being 4.0%; and, Whereas, beyond these distric closest to th University there are districts with rental percentages ofsingle-family and dup x units as high s approximately 30% that are not showing the similar high levels of n sance and noise c plaints and thus can be characterized as healthy and stable; and, Whereas, if the six distri s with the largest conce ration of single-family and duplex rental units are prohibited from ' creasing the number of re al permits for single-family and duplex units, it is reasonable t assume that real estate inves rs, current Iowa City rental property owners, parents of niversity students, and others wi look to neighborhoods in adjacent districts to purcha single-family homes and duplexes o convert from owner - occupied housing into ren I housing to serve the housing marke created by the University of Iowa, and that the negati a impacts demonstrated in the districts c Best to the University will spread to the next ring districts that are reasonably capable of se ing the student rental market ("Impact Area" , and, Whereas, in li ht of the above findings, the Council determines hat there is a tipping point in the Rental I pact Area somewhere between a concentration of 8% of single-family and duplex rental its and a concentration of 54% single-family and dup x rental units where nuisance and not complaints reach a level that compromises the health nd stability of the subject neighbor ood districts, and accordingly, it is reasonable to place th cap on rental permits in distri s to prevent the concentration of single-family and duplex re tal units from exceeding 35% and, Where , to ensure a minimum amount of the dwelling unit is being use as common space, to prev nt property owners from using dining rooms, living rooms, and other areas as bedrooms that would lead to overcrowding and little shared living space within the home, and to mitigate the negative impacts of single-family houses being over occupied and used as de facto rooming houses, no more than 35% of the finished floor area of a dwelling should be bedrooms, and a minimum proportional amount of shared living space should be provided within each dwelling unit based on the number of bedrooms within the unit; and, 5 Whereas, to discourage existing rental units, particularly single-family and duplex rentals, from being chopped up to increase the number of bedrooms, while reducing the overall quality of the living space within the home, and to ensure a more livable bedroom standard for future rentals, the minimum bedroom size for new ren/en its and for new bedrooms i xistinc rental units should be 100 square feet; and, Whe as, because single-family houses and es are not designed f high rental occupancy, int connected smoke alarms should be ed for new rental u ' s with four or more bedrooms d for existing rentals that add bedr; and, Whereas, t prevent duplex units from functios one larger ming house, to increase life safety, d to increase privacy, duplex uhould be pe anently separated; and, Whereas, as req ested by the University of Ioudent overnment, all units should have a deadbolt lock for s fety purposes; and, Whereas, because t e number of unrelated ps 1' ng in single-family homes will likely increase with no limit o the number of occupad on familial relationship and because single-family houses d duplexes are not ded for high rental occupancy, owner occupied properties with more t none renter shouldquired to have a rental permit to improve safety and to ensure hou 'ngcoderequiremre met in higher occupancy rental properties; and, Whereas, to address prope oI City's nuisance code, noise -related co peacefulness, public order, and stability should be strengthened; and, Whereas, to ensure open space backyards in single-family and duplex re Whereas, it is in the City's best Now, therefore, be it ordained by cants who repeatedly fail to abide by the and other provisions that impact the safety, oods, the rental permit sanction provisions use and enjoyment of tenants, new paving of could be limited to the rear twenty (20) feet; and, adopt this ordinance. the City of Iowa City, Iowa: Section I. Amendments. 1. Title 17, entitled "Buildi g and Housing," Cha er 5, entitled "Housing Code," Section 3, entitled, "Definitions," is am nded by deleting the efinition of "family" and adding new definitions of "accessory dw ling unit," "bedroom/sleepi room," and "shared living space" as follows: ACCESSORY DWELLI UNIT: A temporary dwelling unit t t is accessory to an owner - occupied single-family welling or duplex. BEDROOM/SLEEPI ROOM: A habitable room within a dwelli used or intended to be used for sleeping. Minim size requirements for bedrooms are set fort in sections 17-5-17 and 17- 5-18 of this Chapt . SHARED LIVIN SPACE: Any habitable room or group of adjoining h bitable rooms, not including bedro ms, located within a Household Living Use, as define in Title 14 of this Code. 2. Title A entitled "Building and Housing," Chapter 5, entitled "Ho sing Code," Section 3, entitled, "D initions," is amended by deleting the definitions of "habitable room," "rental permit," "roomer," ' ooming house," "rooming unit," and "to let" and substituting in lieu thereof the HABITABLE ROOM: A room or enclosed floor space within a dwelling having a minimum of seventy (70) square feet of total floor area with not less than seven feet (7') in any horizontal dimension, used or intended to be used for living, sleeping, cooking or eating purposes, excluding bathrooms, toilet rooms, pantries, laundries, foyers, communicating corridors, closets, storage spaces, stairways and recreation rooms in basements (see definition of Recreation Room In Basement). Notwithstanding the foregoing, bedrooms must meet th/forental al requirements as set forth in sections 17-5-17 and 17-5-18 of this Code. RENTAL PERMIT: A document, issued periodically, which grants the ownerhe option of letting a dwelling, dwelling unit, rooming unit, or Type III dwelling upurposes and showing that the dwelling, dwelling unit, rooming unit, or Typeunit for which it is issued was in compliance with the applicable provisions of this chime of issuance. ROOMER: An occupa of a rooming unit who is not an owner occul ROOMING HOUSE: An welling containing two (2) or more rooming its or type III dwelling units, in which space is let the owner or operator to four (4) or mo roomers. Occupants of units specifically designated type III dwelling units within a room' g house shall be included in the roomer count. Any dwell with a combination of dwelling nits, rooming units, and Type III dwelling units is considered a nconforming rooming house A rooming house is classified as an Independent Group Living Us in Title 14 of this Code. ROOMING UNIT: Any habitable room r group of adjoining abitable rooms located within a Group Living Use, as defined in Title 1 f this Code, and rming a single private unit with facilities which are used or intended to b used by a roo er or roomers for living and sleeping, but not cooking. TO LET: The granting, either in writing or or ly possess a dwelling, a dwelling unit, a rooming 3. Title 17, entitled "Building and Housing,' entitled, "Certificate of Structure Compliance Subsection A in its entirety and substituting in Iii A. Certificate And Permit Required For R for any person to let to another any dwell' g rooming unit, Type III dwelling unit, or r mi to no more than one tenant, unless: by t owner or operator to another the right to it, a Type III dwelling unit. apter 5, entitled "Housing Code," Section 16, d Rental Permit" is amended by deleting a ereof the following Subsection A: 31\el rty: It shall be a violation of this code dwunit, duplex, multiple dwelling, g , except the owner occupant who lets 1. The owner or operator holds a alid certificate of tructure compliance, issued by the City, applicable to tho/enof the specific struc re used for residential rental purposes. 2. The owner or operavalid rental permit, iss d by the City in the name of the owner or operator, to those portions of the pecific structure used for residential rental purpThe one tenant exceptionerein is limited to one tenan er dwelling unit regardless of the number ccupants. By way of illustrati if there are two owner occupants in a single-fam, a rental permit is required if th re are two or more tenants. 4. Title 17, entitled "Bui ing and Housing," Chapter 5, entitled "Housin Code," Section 16, entitled, "Certificate of SJ ngCompliance and Rental Permit" is a nded by deleting Subsection C, pa/tated in its entirety and substituting in lieu thereof the fo wing Subsection C, paragraph 4: 4. Expiratmit; Extensions: Rental permits shall be valid through a expiration date conteon. However, extensions shall be granted to cover an ime period between texpiration date and the period of time permitted by the in ector to remedy ans cited subsequent to a maintenance inspection, provide rental applicatio with fees paid, up to a maximum of 12 months. 5. Title 17Tentitled "Building and Housing," Chapter 5, entitled "Housing Code," Section 16, entitled, "Certificate of Structure Compliance and Rental Permit" is amended adding the following new Subsection C, paragraphs 5c and 8d: 5c. Effective July 1, 2018, the twelve (12) month pe/nb time in Subsection 17- 16C5b shall be twenty-four (24) months. 8d. ffective July 1, 2018, the twelve (12) month pf time in Subsectio s17-5- 16 C8a, , and c shall be twenty-four (24) months. 6. Title 17, a itled "Building and Housing," Chapter 5ed "Housin ode," Section 16, entitled, "Certificat of Structure Compliance and Renrmit" is ended adding the following new Subsec' n C, paragraph13: 13.TheCityma issue a temporary rental permit foxim of twenty-four (24)months if the own is an individual: (a) (1) who haoc pying the dwelling; (2) who intends to retur to the dwelling; and (3) whosn a is due to a sabbatical, an extended vacation, sp riding winter months in a waimate, military service, avolunteer commitment, ployment, or substantiallar reason; or (b) who occupied the dwelling at the time o death and the owner's hoccupies or intends to occupy the dwelling. 7. Title 17, entitled "Building and ousing," Chapt 5, entitled "Housing Code," Section 16, entitled, "Certificate of Structure Com liance and an, Permit" is amended adding the following new Subsection E, entitled"R tal Per it Cap" and inserting Figure 17-1, Rental Impact Area Map, attached and incorporate herei E. Rental Permit Cap 1. Definitions: Rental Impact Area means the ge r hic area delineated as such on the Rental Impact Area Map in Figure 17-1. Rental Permit District means th geogra is districts labelled and delineated on the Rental Impact Area Map in Fi re 17-1. 2. Within the Rental Impact Are , the City shal of issue a rental permit for any single- family dwelling or duplex in Rental Permit D trict where the percentage of single- family dwellings and dupl units that have ren I permits exceeds 35% of the total number of single-family d duplex units within s id rental permit district, except as provided herein. This I' it shall be known as the r ntal permit cap. 3. Exceptions to the ren I permit cap: a. Dwelling with a re tal permit on the effective date this section. b. Dwelling with a r ntal permit that expired after Dece bar 13, 2015 if a renewed rental permit is ssued before July 1, 2018. c. Existing legal) nonconforming single-family dwellings d duplex units located within a zoni g district where single-family dwellings an duplex units are not an allowed us . d. Accessory dwelling units. e. Owner -o upied duplexes, where the owner occupies one u it and leases out the second nit. f. Approv d bed and breakfast homestays and inns. g. Dwelli g with a temporary rental permit. h. Grou Household as defined in Title 14 of this Code. i. A n single-family dwelling or duplex if a building permit was issued before June 13, 017. j. An existing single-family dwelling or duplex if a building permit was issued after De tuber 13, 2015 and before June 13, 2017. 4. Notwithstanding any other provision of this chapter, the Board of Appeals does not have the authority to grant an exception, variance, or any other relief to the rental permit cap. 8. Title 17, entitled "Building and Housing," Chapter 5, entitled "Housing Code," Section 17, entitled, "Minimum Structure Standards for All Dwellings," is amended by deleting Subsection K, paragraphs 1 and 2, and substituting in lieu thereof the following Subsection K, paragraph 1 o paragraph 2): K. Minimum Space, Use And Location Requirements: 1. F or Area Per Occupant: a. very dwelling unit shall contain at least one hundred twenty (120) s are feet of h itable floor space for the first occupant thereof and at least on undred (100) adcrkonal square feet of habitable floor space for every addition occupant b. The floo area of that part of a room where the ceiling heigh s less than five feet (6) shall hpt be considered when computing the total floo area of the room. 9. Title 17, entitled " uild entitled, "Minimum Struct e Subsection D as paragraph D2. Newly construc interconnected smoke (1) or more bedrooms ng and Housing," Chapter 5, Standards for All Rental Ho and adding the following new tgdwellings with four (4) or a rms (hardwired or wireless sha have interconnected sal titled Housing Code," Section 18, '1g,7 is amended by renumbering ection D, paragraph 2: re bedrooms shall have Existing dwellings that add one a alarms (hardwired or wireless). 10. Title 17, entitled "Building an Housing,llCRhapr 5 for entitled "Housing Code," Section 18, entitled, "Minimum Structure Standa s ousing," is amended by adding the following new Subsections L, M, N, O, 1 Q and R: L. Bedrooms cannot exceed 35 perc nt (35°/ of the finished floor area of a single-family dwelling or duplex unit, not includin flooarea of a recreation room in the basement. This dimensional requirement is subj to administrative review. M. Bedrooms shall have a minimum of o hundred (100) square feet of total floor area. The floor area of that bedroom wher th ceiling height is less than five feet (6) shall not be considered when computing the otal f or area of the bedroom. These dimensional requirements are subject to admi strative view. Any lawful bedroom/sleeping room greater than or equal to seventy 70) square et in existence prior to January 1, 2018 may continue to be used as a edroom/sleepi room. However, if and when it is brought into compliance with a current minimu dimensional requirements, it may not be converted back to a sub andard size. N. Within Household Living U as, as defined in Title 1 of this Code, a minimum of 100 square feet of shared livi space shall be provided r every bedroom within the dwelling unit. By way o illustration, for a two-bedroo single-family dwelling, there must be at least 200 square eat of shared living space within he dwelling. Any lawful dwelling unit in exist ce prior to January 1, 2018 that is tin compliance with this provision may conti ue as currently configured. However, and when the shared living space is brought i to compliance with the current minimum ' ensional requirements, it may not be con rted back to a substandard size. Any chang that would increase the noncomplianc with this provision is not allowed. This dimensio I requirement is subject to a inistrative review. O. The two ( dwelling units of a duplex must be physically and perm nently separated, and the eparation must be continually maintained. I way of ill istr tion, a duplex shall not have a door that opens from one duplex unit directly into the other uplex unit. P. Every dwelling unit and rooming unit shall have a deadbolt lock that can be operated from inside and locked from the outside. "Deadbolt" means a locking mechanism where the bolt cannot be moved to an open position except by rotating the locked cylinder. Q. After November 21, 2017, an improved surface shall not be constructed, installed, or established on the rear yard of a single-family dwelling or a duplex, except within the first 20 feet of lot depth as measured from the rear lot line and setback at least 5 feet abutting properties. The remainder of the rear yard shall remain landscaped op pa free of impervious surface. This provision shall not apply to allowed accessory structures. ear yard shall have the meaning as defined in Title 14 of this Co . Improve surface means asphaltic cement concrete, Portland cement c rete, manufact red paving materials (such as brick), or similar hard surface R. In an admi 'strative review, the Director or designee may grant a mi r adjustment to the dimensional equirement if in conformance with the purposes oft ' chapter. Minor adjustments s all be noted in the property file maintained by th eighborhood and Development S rvices Department. Section II. Repealer. II ordinances and parts of ordir this Ordinance are hereby pealed. Section III. Severability. I ny section, provision or part be invalid or unconstitutional, ch adjudication shall not al whole or any section, provision part thereof not adjudged Section IV. Effective Date. Thi Ordinance shall be eff/ Passed and approved this day of Mayor City Clerk 10 conflict with the provision of k Ordinance shall be adjudged to the validity of the Ordinance as a lid or unconstitutional. January 1, 2018. 2017. -plove4r /l- IL -) ^7 City Attorney's Office Figure 17-1. Rental Impact Area Map BO ; F0y- Mayflower / Shimek NI Dubuque Road Upper e Ralston ssr Foster Road y s°DiCreek Legend • - rte. i \ O Rental Impact Area Q Rental Permit Districts i i ! ..�� � � Mod._. !MORMON tx 1, Iowa City City Limits r . Ivo Grant Wood Hill / Lei Court / Luc \ Park RA w •\• i \• "gra City .� `\• �•,• Northsid \r y O HLYY! oKo W Z ROCHESTER AV y ET ST Q � i �WkINSOq F R !�`.• College Green i •SAVE City High ME p� Z • P MELR EAVE w COURT 1�,��1 Riverfront Bowery a ` Melrose okland / Crossings East s Emerald Roosevelt , a ongfellow West High gc NT P { v; T RWOOD AVE �° Miller Orchard a x MarkTwam ET RD z Riverfron1 s �c Willow Creek Crossings aA"� Fqa West Legend • - rte. i \ O Rental Impact Area Q Rental Permit Districts i i ! ..�� � � Mod._. !MORMON tx 1, Iowa City City Limits r . Ivo Grant Wood Hill / Lei Court / Luc 1 r i wr®�a4 CITY OF IOWA CITY COUNCIL ACTION REPORT November 21, 2017 Ordinance amending Title 17, entitled 'Building And Housing," Chapter 5, entitled "Housing Code," to establish a rental permit cap and to strengthen the minimum requirements for rental housing. Prepared By: Karen Howard, City Planner Reviewed By: Geoff Fruin, City Manager Tracy Hightshoe, Interim Director NDS Stan Laverman, Senior Housing Inspector Fiscal Impact: No Impact Recommendations: Staff: Approval Commission: NA Attachments: Ordinance; Maps Executive Summary: This memo includes additional information requested by Council and recommendations for refinements to the ordinance and rental permit district boundaries presented at the November 6 Council meeting that would establish a rental permit cap in certain neighborhoods and strengthen the minimum requirements for rental housing. Background / Analysis: At your November 6 meeting, Council directed staff to examine the boundaries of the rental permit districts and provide guidance on any adjustments necessary based on input from the public and any unintended consequences this ordinance may have on other previous and ongoing neighborhood stabilization efforts. Council also requested information about the implications of reducing the rental cap from the previously proposed 40%. Furthermore, based on some questions from several landlords, we are suggesting some minor changes to the code language to clarify several of the provisions and are recommending an additional requirement for single family and duplex rentals to prevent excessive back yard paving. The proposed changes to the rental impact area map and ordinance are outlined in more detail below. Rental Permit Boundaries The open space district boundaries were used for the purposes of this ordinance because they follow logical neighborhood edges, such as busy streets, railway lines, the river, creeks, and other natural barriers. They were developed to respond to neighborhood open space needs which in most cases also make sense for the purposes of the neighborhood stabilization ordinance currently under consideration. Due to concerns expressed regarding the boundary between the Northside and Goosetown neighborhoods and the boundary of the Bowery District along South Governor Street, Council requested that we examine more closely the district boundaries to make sure they align with past and ongoing neighborhood stabilization efforts. ®,1 CITY OF IOWA CITY ��a` COUNCIL ACTION REPORT Staff identified several reasons to adjust the eastern boundaries of the Northside, College Hill, and Bowery rental districts to match the eastern boundary of what is described and delineated in the Central District Plan as Subarea A. The Central Planning District is divided into three subareas as a means of emphasizing issues that are of particular importance or relevance to those locations. Subarea A encompasses the older eastside neighborhoods that surround downtown Iowa City and the University campus. It has the greatest diversity of housing types and widest range of zoning designations, is the only area of the City where the stabilization zoning designations (RNS-12 and RNS-20) are used, and includes most of the historic and conservation overlay districts. It also coincides with the areas of higher and more widespread nuisance and noise complaints, as shown on the attached heat map. The Central District Subarea A boundary has been used in several neighborhood stabilization efforts, including the UniverCity Neighborhood Partnership program, and as a guide for creating the University Impact Area for the neighborhood stabilization effort in 2012 that addressed density, occupancy and parking regulations for multi -family properties. There have also been a number of down -zonings in the College Hill neighborhood and along both sides of South Governor Street to help stabilize and maintain the existing single family character of those areas. In light of these factors, staff recommends adjusting the eastern boundaries of the Northside, College Green, and Bowery districts to coincide with the eastern boundary of Central District Subarea A, as shown on the attached revised Rental Impact Area Map, Figure 17-1, and as described below: • The Northside district boundary is shifted east to include the neighborhoods commonly known as Goosetown (boundary encompasses properties on both sides of Reno Street) and Deweyville (the older residential neighborhood west of Hickory Hill Park and north of Oakland Cemetery); • The College Green district boundary is shifted east to Parsons Avenue and follows Ralston Creek to Muscatine Avenue, which then encompasses the College Hill Conservation District and Moffit Cottages Historic District; • The Bowery district boundary is shifted east to the alley between Governor and Summit Streets, to encompass the entirety of the Governor -Lucas Street Conservation District and the UniverCity Neighborhood Partnership Program area; Since so much of the remaining area in the Hickory Hill open space district is parkland and cemetery, it does not make sense to maintain this district for purposes of regulating rental property, so staff recommends incorporating the residential neighborhood south of Hickory Hill Park and north of Rochester Avenue into the City High District, since it is similar in character to other residential areas surrounding City High, and shifting the remainder of the area north and east of the park into districts outside the rental impact area. Rental Can Threshold Council requested additional information about the difference between establishing a 40% cap, 35% cap, and 30% cap. The following spreadsheet shows each of the possible percentage caps, the current percentage of single family and duplex rentals within each rental permit district (with r_ -r.,-4 at CITY OF IOWA CITY -'°', COUNCIL ACTION REPORT the amended boundaries as described above), and the total number of new rental properties that could be added under each cap. Staff is supportive of moving to a 35% cap as it falls between the rental percentage in neighborhoods that are still stable and healthy at about 28% and areas that are unstable, the lowest of which is approximately 54%. Since the tipping point is somewhere within that range, 35% cap is a reasonable level to establish as the cap. A 35% cap also provides for a reasonable number of additional single family and duplex rentals within the Rental Impact Area outside the capped districts and rental permits will remain unrestricted in outlying areas. As with any new zoning initiative, staff will monitor its effectiveness over time and it can be adjusted if necessary to address future housing needs and to ensure safe, healthy, and stable neighborhoods for all residents. Minor amendments to the ordinance 1. Staff added language to the ordinance to clarify that no more than one tenant is allowed within an owner -occupied property without obtaining a rental permit, regardless of how many owner occupants reside at the property. 2. The previous draft of the ordinance stated that in rental properties, bedrooms must not exceed 35% of the habitable floor area of a single family dwelling or duplex unit. Staff recommends changing the standard to address the "finished floor area' rather than "habitable floor area" since it more directly matches the results of the study from the National Homebuilders Association, which included areas of the home considered non - habitable, such as foyers, bathrooms, and hallways. It will also be much easier to administer and enforce the standard because building plans submitted for a permit typically list the total finished floor area of the dwelling. 3. Since there has been some confusion about existing units that are not in compliance with the new minimum shared living space standards and the provision regarding separation of duplex units, staff added language that clarified that any existing dwelling unit that is not in compliance with the minimum shared living space standard may continue as currently configured. However, any change that would increase the nonconformity by [Number of Total :Number afTotal =Number of Total Percentage of :houses :number of ihouses inumber of :houses inumber of i Total Number oft Single. Ghat couldinew rental :that couldinew rental Ghat Could:new motel Single- Family/Duplex Units Percent :get new pemuts Percent :get now permits Percent ;get now ;permits Famlly/Duplex) that have a rental that could4ental ;that could that could intrust ;that could that could irenml that could Open Space District Noma; units permit _ be added .permit :beissued be added :perm@ :be issued be. added:Permit :be issued 910, _ 658. _ _ 406 City High 1143 13.4 26.6 304 21.6 247 16.6 190 Melrose/Emerald 226 15.9 24.1 54 19.1 43 14.1 32 WIllow Crack 765 17.6 22.4 171 17.4 133 124 95 Chy Park 544 21.5 18.5 101 13.5 73 8.5 46 Mark Twain 1138 27.9 12.1 138 7.1 81 2.1 24 Longfellow 909 _ _-28.4. 11-6 106 6.6 60 1.6� 15_ _ Mille" Orchard _ 310 28.4 _11.6 36 6.6 20 1.6 5 _ _ Nodl(sidelceosetown 120-53 :81 College Green 365 54.0 Bmokland f Raossvelt 297 S4.2. - PMrfe nt Crossings East 43 65.11 Nirvarfront Crossings West 25 68.01 _- r Bowe 238 76.1 Minor amendments to the ordinance 1. Staff added language to the ordinance to clarify that no more than one tenant is allowed within an owner -occupied property without obtaining a rental permit, regardless of how many owner occupants reside at the property. 2. The previous draft of the ordinance stated that in rental properties, bedrooms must not exceed 35% of the habitable floor area of a single family dwelling or duplex unit. Staff recommends changing the standard to address the "finished floor area' rather than "habitable floor area" since it more directly matches the results of the study from the National Homebuilders Association, which included areas of the home considered non - habitable, such as foyers, bathrooms, and hallways. It will also be much easier to administer and enforce the standard because building plans submitted for a permit typically list the total finished floor area of the dwelling. 3. Since there has been some confusion about existing units that are not in compliance with the new minimum shared living space standards and the provision regarding separation of duplex units, staff added language that clarified that any existing dwelling unit that is not in compliance with the minimum shared living space standard may continue as currently configured. However, any change that would increase the nonconformity by 'r__ --r,-4 CITY OF IOWA CITY �� COUNCIL ACTION REPORT reducing shared living space would not be allowed. We also clarified the language for the duplex separation requirement. This provision will not prevent duplex units from sharing amenities, such as entry hallways and laundry facilities, if each unit has a separate secured access to these common areas. For example, a resident of one unit should not have to allow residents from the other access into their unit to use the laundry facilities. A shared laundry must be located in a common area. 4. Currently there are no parking design standards for single family and duplex dwellings and parking can be installed right to the property lines without buffering or screening. It has become an increasingly common practice for entire back yards to be paved to maximize the occupancy of rental properties. This practice eliminates usable open space for the residents, increases stormwater run-off, eliminates tree cover, and reduces the enjoyment of back yard green space for the neighboring homes as well. This is one of the issues that will be addressed in the forthcoming zoning code changes. However, there have been at least two instances in the last few weeks of trees being cut down and paving being expanded in the back yards of rental properties in anticipation of these ordinance changes and subsequent inquiry from another property owner about doing the same. To prevent further damage to the single family residential character of our older neighborhoods, staff recommends inserting language into the housing code to prohibit this practice for single family and duplex rental properties effective November 21. Once the new standard is in place in the zoning code, staff can assess whether it is still needed in the housing code. Percentage of Single Family and Duplex Units that have a Rental Permit and Number of Nuisances and Noise Complaints Each rental area is labeled with the percentage of single-family and duplex units that have a rental permit Data Sources: Iowa City police calls, 1/1/2013-9/9/2016 Complaints through ICGovExpress, 4/19/2013-3/30/2017 Nuisance complaints include: -Couches stored outside -No rental permit -On street parking violation -Parking on unapproved surfaces -Snow removal -Tall grass and weeds -Vehicle street storage Noise Complaints Include: -Loud parties -Fireworks -General noise complaints Legend QRental Impact Area ! _� 0 0.375 0.75 1�Miles �OVMNII . w E AI O Rental Permit Districts +�r•p� � etl; IvQJt.IwGG- Ibl Joi� • -� I- -- Iowa City City Limits Cm of IOWA CITY s Number of Complaints Author: Sylvia Bochner Maximum: 226 Department: Neighborhood and Development Services Projection: NAD 1983 State Plane Iowa South Minimum: 1 This map is intended to serve as an aid in graphic representation only. This information is not warranted for accuracy or other purposes. I -� — i 19.9 25.7 12.9 A 1.1 ♦�� �� 2,.5 7 _ ii 53.8- ' r ., e .. �u?IM iurra. I i 0.8uLlu 0,:RWW 6.7 3.2 i iin-: -.r 1.13.4 IL _ - r 76., 0.6 'L sa.2 •'" 0 28.4 12.6 r15.9 ° 65.1 10 68 1.1 28.4 _ It 27.9 �. 13 Lr 17.6 21 11 ., i 17.8 ' �{ �1 J Each rental area is labeled with the percentage of single-family and duplex units that have a rental permit Data Sources: Iowa City police calls, 1/1/2013-9/9/2016 Complaints through ICGovExpress, 4/19/2013-3/30/2017 Nuisance complaints include: -Couches stored outside -No rental permit -On street parking violation -Parking on unapproved surfaces -Snow removal -Tall grass and weeds -Vehicle street storage Noise Complaints Include: -Loud parties -Fireworks -General noise complaints Legend QRental Impact Area ! _� 0 0.375 0.75 1�Miles �OVMNII . w E AI O Rental Permit Districts +�r•p� � etl; IvQJt.IwGG- Ibl Joi� • -� I- -- Iowa City City Limits Cm of IOWA CITY s Number of Complaints Author: Sylvia Bochner Maximum: 226 Department: Neighborhood and Development Services Projection: NAD 1983 State Plane Iowa South Minimum: 1 This map is intended to serve as an aid in graphic representation only. This information is not warranted for accuracy or other purposes. Contents 2.2.2 City of North Mankato Comprehensive Plan.........................................................................................................6 Section 3: Studies Conclude Issues Exist When Rentals are Concentrated in Single -Family Neighborhoods ....................8 3.1 Homeownership and Neighborhood Stability are Affected..........................................................................................8 3.2 Negative Impacts Associated with Rental Concentrations in Single -Family Neighborhoods.......................................9 3.3 Decreased Property Values...........................................................................................................................................9 SECTION 4: Peer Cities Review Offer Best Practices for Rental Density Ordinance Revision...........................................10 4.1 Peer cities....................................................................................................................................................................10 Section 5: Legal Framework Enabling Rental Restrictions..................................................................................................11 5.1 Constitutional Validity: Case Study - Dean v. The City of Winona..............................................................................12 Section 6: North Mankato Trends in Neighborhood Conversion to Rental Property........................................................14 6.1 Zoning Districts Affected by Regulation......................................................................................................................14 6.2 Rental Licensing Status...............................................................................................................................................15 6.3 Trends in Rental Licenses............................................................................................................................................16 6.4 Police Calls and Associated Crime Distribution...........................................................................................................19 6.5 Rental Strikes..............................................................................................................................................................21 6.6 Nuisances and complaints in single-family residential neighborhoods..............................................................22 Section 7: Seeking a Right Mance of Owner- and Renter -Occupied Homes.......................................................................... 24 7.1 Addressing Potential Concerns Raised by Citizens.....................................................................................................25 Section 8: Findings and Conclusion......................................................................................................................................26 Section 9: Policy Recommendations....................................................................................................................................27 Appendices............................................................................................................................................................................ 29 A. Minnesota Association of City Attorneys Educational Conference (2014) — Conference Agenda...................................30 B. City of North Mankato Documents...................................................................................................................................31 B.1— Draft Rental Density Ordinance..............................................................................................................................32 B.2 —Moratorium Resolution..........................................................................................................................................33 B.3 — City Code Section § 151.11 Conduct on Licensed Premises...................................................................................34 11 Page CITY OF NORTH MANKATO C. Peer City Survey Responses..........................................................................................................................................35 D. Legal Framework — Dean vs. City of Winona, MN............................................................................................................36 D.1-843 N.W.2d 249 (2014) — Ethan DEAN, et al., Appellants, v. CITY OF WINONA, Respondent. — No. A13-1028 — Court of Appeals of Minnesota — February 24, 2014......................................................................................................37 D.2 —868 N.W.2d 1 (2015) — Ethan DEAN, et al., Appellants, v. CITY OF WINONA, Respondent. — No. A13-1028— Supreme Court of Minnesota —February 24, 2014.........................................................................................................38 E. North Mankato Police Department's 2015 Year End Report........................................................................................39 E. 1 North Mankato Police Department: Distribution of Police Calls.............................................................................40 21 Page CITY OF NORTH MANKATO Executive Summary This document explores the effects of rental properties within the community and recommends policy resolutions to address the increasing conversion of single-family, owner -occupied, residential homes to renter -occupied homes in R -A, R-1, R1 -S and R-2 residential zoning districts in the City of North Mankato. The City undertook this study to gain an understanding of the issues associated with the increasing conversions of single family homes to rentals in the community and to appropriately address those issues with a strong, informed rental density ordinance that will prevent the deterioration of neighborhood quality of life. Rental restrictions have come to the forefront of municipal planning efforts in Minnesota as cities realize increased rates of conversion of single-family homes to rentals. Several studies have documented potential adverse effects associated with concentrations of rental properties and cities have found resolve with the establishment of ordinances regulating the number of rental licenses that can be issued on a given block. Research shows that rental concentrations are linked to increases in nuisances, City Code violations, and calls to the Police Department and data findings in North Mankato give merit to those claims. The key findings of this study are outlined below: • Annual rental license issuance is trending upward on average of 4.3% per year in North Mankato and, if left unregulated, will allow for the addition of roughly 70 new licenses in the next 5 -year period. • Rental density regulation is rooted in the North Mankato Comprehensive Plan which contains a policy to "create a policy that permits a limited number of rental units in a specified area to minimize turnover of owner -occupied single-family homes to rental units within established neighborhoods." • The literature review demonstrates a relationship between homeownership and neighborhood stability suggesting that homeowners have more at stake with their properties and spend more time and resources on maintaining them. In doing so, property values are maintained and social conditions may improve. • Four Minnesota cities, including Mankato, West St. Paul, Northfield, and Winona have established successful rental density ordinances. • Research supports and data findings suggest that a clear problem exists with unregulated rental concentrations in urban environments. In North Mankato, data collection and analysis has revealed that the issues exist in the City. • Lower North Mankato is almost fully developed and stands to be altered by increased rental license issuance without intervention. At 16% renter occupancy, Lower North currently exceeds the level determined by the City as a benchmark for neighborhood stability (10% per block). Without offsetting factors such as new development, Lower North could see the addition of 50 new licenses in a 5 -year period raising the percentage to nearly 19%. • North Mankato data suggests that increased crime, nuisances and complaints are linked to concentrations of rental properties in the community. Renter -occupied homes represent approximately 8% of the housing stock in relevant zoning districts as well as 22% of all police call occurrences. • In Lower North, renter -occupied homes represent 16% of properties and are responsible for 31% of all police calls. • City wide, there is one police call to every 4.15 owner -occupied homes and one to every 1.51 renter -occupied homes. In Upper North, there is one occurrence to every 5.55 owner -occupied homes and one to every 3.22 renter - occupied home. Finally, in Lower North, there is one to every 2.86 owner -occupied homes and one to every 1.28 renter -occupied homes. • Rental strikes highlight areas of repeat offenders in the City and those areas are connected to the densest areas of rental concentrations in the community. 31 Page MMli CITY OF NORTH MANKATO Policy Recommendations from this study are outlined below: Policy 1: The City should pursue the establishment of §151.18 Rental Density Ordinance (Appendix 8.1). A rental density ordinance limiting rental license issuance to 10% per block in the community will increase the potential for successful achievement of neighborhood stability in North Mankato. This ordinance may consider the differences within Upper and Lower North Mankato and address them separately with different limitations for each. Policy 2: The City should pursue the establishment of § 151.19 Temporary Rental Licenses (Appendix 8.1). Other communities have suggested that the establishment of a temporary rental license ordinance alleviates some unforeseen circumstances that may occur in relation to homeowners who are unable to sell properties but cannot afford the property or do not reside there. Policy 3: The City should adopt increased parking requirements for rental properties (Appendix 8.1). As illegal parking is an issue associated with rental concentrations, the City should pursue increased parking requirements that will assist with controlling offenders at rental properties. Policy 4: The City should increase efforts for documenting grass, weed, and nuisance complaints. The City should set up a spreadsheet database to enhance documentation and better monitor grass, weed, and nuisance complaints to increase understanding of the adverse effects of these complaints on the community. 41 Page CITY OF NORTH MANKATO Section 1: Purpose and Intent 1.1 Study Purpose The purpose of this document is to document and recommend policy actions to address the increasing conversion of single-family and two-family, owner -occupied, residential homes to renter -occupied homes in R -A, R-1, R -1S, and R- 2 residential zoning districts in the City of North Mankato. These trends were identified in a presentation to the City Council on September 2015. While the City values providing opportunities for renters, research shows that concentrations of rental properties may lead to undesirable conditions posing a threat to neighborhood quality of life. These conditions include increased nuisance complaints, City Code violations, and calls to the Police Department (Appendix E) that impact the public welfare of citizens who both own and rent homes. Data collected in North Mankato demonstrate a connection between concentrations of renter -occupied homes and increased incidents of these actions. 1.2 Study Intent This study provides background information, supporting data, and policy recommendations that work toward a shared community vision as identified in the goals of the Comprehensive Plan and Strategic Plan aimed at maintaining quality of life in the City of North Mankato and its neighborhoods. In this context, the City approaches rental regulation in a nondiscriminatory manner, appropriately considering the rights of property owners, renters, and their neighbors similarly. Regulations such as this are naturally conflictual because of the effect such regulations have on individuals and property rights. With these values in mind this report recommends additional regulation based on peer reviewed empirical research, data collection and analysis specific to North Mankato and input from other Cities in Minnesota who have enacted similar regulations. This study illustrates the role of rental restrictions in maintaining quality of life standards, provides scenarios of other cities and strategies they are using to control undesirable effects of rental concentrations, provides a description of the constitutional validity of a rental density ordinance, provides supporting recommendations from the North Mankato Comprehensive Plan and other policy documents, contains various data analyses that describe the implications of rental restrictions in communities, and provides policy recommendations for implementation of a rental density ordinance. The information described in the study supports the adoption of revisions to Chapter 151, Section 18 of the City Code by the North Mankato City Council. 51 Page CITY OF NORTH MANKATO Section 2: Background 2.1 North Mankato Rental Licensing Moratorium On September 21", 2015, the North Mankato City Council issued a one year moratorium on the granting of new rental licenses throughout the City in response to an upward trend of issued licenses that predicted densities of rentals in Lower North would exceed maximum densities set in other communities in Minnesota. Local government action to regulate rental density has recently come to the forefront of planning in Minnesota as cities implement rental density caps to restrict the percentage of single-family residential conversions to rental properties to protect neighborhood quality of life. Cities such as Winona, Northfield, Mankato, and West St. Paul have all established similar ordinances (Table 1). While Winona, Mankato, and Northfield acted to regulate rentals in response to the concentration of students living off campus, West St. Paul acted in response to an increasing amount of foreclosed properties. Limits allowable rental lots on a block to 30% Limits 25% of lots on a block to be eligible to obtain rental licenses Limits 20% of all lots on a block able to receive rental licenses Limits 10% of lots on a block to receive rental licenses Table 1. Minnesota communities regulating rental density through city ordinance. 2.2 Policy Background 2.2.1 2015 Strategic Plan The 2015 North Mankato Strategic Plan was developed as framework for a shared community vision of what the community wants to be and direction on how to get there. A major goal of the North Mankato Strategic Plan is "Growing & Vibrant Residential Districts" in the community. By achieving the balance between owner - occupied and renter -occupied residential homes, the City will be closer to achieving and maintaining this goa I. 2.2.2 City of North Mankato Comprehensive Plan 2.2.2.1 A Vision for North Mankato The City of North Mankato strives to protect and enhance the quality of life for residents as the City grows. Through the Comprehensive Planning Process, the City has identified a vision (Figure 1) that "gives the community a stated goal of what their future will be and is paramount in managing f Adaptability. The ability to adjust means and methods to resolve changing situations Excellence. Going above and beyond expectations Responsibility. Taking ownership and being accountable for performance Integrity. Being honest impartial and aligning actions with principles Leadership: Achieving a common goal by motivating others Figure 1. A Vision for North Mankato. (Source: North Mankato Comprehensive Plan, 2014) 61 Page CITY OF NORTH MANKATO the growth and development within the community." The vision statement for the community captures the overarching, "Big Picture," aspirations of the City. The proposed rental density ordinance will assist in achieving this vision for the community. 2.2.2.2 Comprehensive Plan – Chapter 4: Housing According to Chapter 4 from the North Mankato Comprehensive Plan, "The City is open to creatively seeking opportunities to meet our housing needs and responsibly providing our share of affordable housing. Housing in North Mankato continues to be a strength in attracting young families to the area." The City recognizes that areas like Lower North have high concentrations of rental properties. The majority of Lower North is also recognized as an ideal location for starter homes for young families, located in neighborhoods that have been well maintained and contribute to community character. As evidenced by the Comprehensive Plan, the City would like to preserve this neighborhood quality of life and continue to provide ideal housing options for starter families as well as additional members of the local workforce that will meet the workforce needs of the region in the future given the projected deficit of 2,800 workers by 2025. The following goal and policies were included in Chapter 4: Housing to guide housing to this end: 1. Goal—Provide attractive and desirable residential properties o Policy 2.1.2: Monitor "at risk" or "blighted" properties or areas and connect property owners to housing improvement programs, loans and assistance opportunities for rehabilitation. o Policy 2.1.5: Consider a policy that permits a limited number of rental units in a specified area to minimize turnover of owner -occupied single-family homes to rental units within established neighborhoods. This document and the proposed ordinance revision it recommends provides an implementation plan for these policies. As the Comprehensive Plan serves as the guiding document for the achievement of the shared vision for the community, adherence to the goals, objectives, and policies outlined in the plan is vital to that achievement. 71 Page CITY OF NORTH MANKATO Section 3: Studies Conclude Issues Exist When Rentals are Concentrated in Single - Family Neighborhoods Studies give merit to the claim of adverse effects associated with increased concentrations of rental properties in neighborhoods. Adverse effects identified in the literature from a concentrated conversion of single-family homes to rentals include declining neighborhood stability, increased nuisances, property maintenance complaints, police calls, and declining property values. A discussion of this literature is presented in this section. 3.1 Homeownership and Neighborhood Stability are Affected An article entitled "Homeownership and Neighborhood Stability"' gives merit to conventional thinking that increased homeownership leads to greater neighborhood stability. Authors focused research efforts on a conceptual model (Figure 3) outlining the effects of homeownership rates on various indicators of neighborhood stability and found support for that model within existing literature. At least four aspects of neighborhoods might be stabilized by homeownership (Figure 2). These include: At least four aspects of neighborhoods might be stabilized by homeownership: • Length of tenure of the current residents • Property values • Physical condition of properties • Social conditions in the neighborhood, such as school dropout or crime rates Figure 2. Four Aspects of Neighborhoods Stabilized by Homeownership (Source: Rohe & Stewart, 1996). 1. Length of tenure of the current residents 2. Propertyvalues 3. Physical condition of properties 4. Social conditions in the neighborhood, such as school dropout or crime rates Determinants of homeownership , Homeownership interests • Economic interests • Use interests • Participation in community organizations • Social interaction • Sense of community Residential satisfaction Figure 3. Conceptual Model: Effect of Homeownership on Neighborhood Stability. (Rohe & Stewart, 1996) 'William M. Rohe and Leslie S. Stewart, "Homeownership and Neighborhood Stability," Housing Policy Debate (Volume 7. Issue 11. 1996: 48. 81 Page CITY OF NORTH MANKATO Actions of other residents and outsiders, e.g., credit flaws, Neighborhood media stability portrayals, . Length of public policies tenure ' Property values • Pmp xty . Physics] maintenance Neighborhood conditions • Demands on conditions . Steal city services conditions Residential satisfaction Figure 3. Conceptual Model: Effect of Homeownership on Neighborhood Stability. (Rohe & Stewart, 1996) 'William M. Rohe and Leslie S. Stewart, "Homeownership and Neighborhood Stability," Housing Policy Debate (Volume 7. Issue 11. 1996: 48. 81 Page CITY OF NORTH MANKATO Rohe and Stewart advance a model that provides evidence of a link between homeownership and neighborhood stability. Those opting for homeownership differ from those opting to rent in a number of social characteristics. Homeowners are more likely stable defined in terms of length of residence and property maintenance. Homeowners possess both economic and use interests in their properties which leads to increased support for increased property maintenance standards. These interests also lead to greater social interaction within, and psychological identification with, the neighborhood as a whole. With this, homeowners may be more likely to join area organizations that protect neighborhood interests. Research also suggests that "homeowners are more likely than landlords to undertake repairs and spend more on them." It is these interests homeowners have in their property that fosters a vested interest in the quality of the neighborhood as a whole.' The article further suggests that homeownership can be an indicator of a family's status and offers great control over one's living environment. These represent important social and psychological benefits that are closely guarded by individuals. The deterioration of surrounding homes within neighborhoods can affect their property and may be interpreted as threats to their status and security? Rohe & Stewart also developed a property value model and found this to suggest that changes in the homeownership rate have a positive association with property value changes; suggesting that even modest increases in homeownership rates may increase neighborhood property values over time.' Increases in nuisance and property maintenance complaints, City code violations and police calls associated with rental concentrations are discussed in the following sections. 3.2 Negative Impacts Associated with Rental Concentrations in Single -Family Neighborhoods The Hoisington Koegler Group (HKGI) was solicited by the City of Winona in 2012 to conduct a literature review relating to rental housing concentrations and associated negative impacts on neighborhood quality and livability. This review found several studies containing empirical analyses linking higher concentrations of rental houses to negative impacts on surrounding neighborhoods. Findings concluded that over - concentrations of rental houses in single-family residential neighborhoods have the following negative impacts on Negative Impacts Associated with Rental Concentrations: • Noise • Increased Traffic • Litter • Illegal Parking • Inadequate Property Maintenance • General Decrease in Quality of Life for Permanent Residents of the Neighborhood Figure 4. Negative Impacts Associated with Rental surrounding residential properties and neighborhoods: noise, Concentrations (Source: HKGI Memorandum to Winona City increased traffic, litter, illegal parking, inadequate property Council, Planning Commission, and City staff). maintenance, and a general decrease in quality of life for permanent residents of the neighborhood (Figure 4). Nuisance complaints, code violations, and crime incidents are key indicators of a neighborhood's livability and residents' satisfaction with their neighborhood. The literature supports claims of increased occurrences of these in areas of rental concentrations. Likewise, data collected in the City of North Mankato provides evidence of this locally and is further explored in section four of this report. 3.3 Decreased Property Values HKGI identified several studies through their research (Wang, et al; Rohe and Stewart; Janmaat, Pindell) containing empirical analyses linking higher concentrations of rentals to decreases in property values of nearby homes. One study 'William M. Rohe and Leslie S. Stewart, "Homeownership and Neighborhood Stability," Housing Policy Debate (Volume 7. Issue 11. 1996. 91 Page MMli CITY OF NORTH MANKATO in particular, "The Impact of Rental Properties on the Value of Single -Family Residences,"' concluded that "an inverse relationship exists between the value of a house and the presence of rental properties in the study area." Data used in this study included over 23,000 single-family residences and over 1,100 home sales in San Antonio, Texas. The other studies researched by HKGI supported these findings (Rohe and Stewart'; Janmaat', Pindell6). A Memorandum from HKGI to the Winona City Council, Planning Commission, and City Staff outlining these findings was presented at the Minnesota Association of City Attorneys Educational Conference in February of 2014. The Conference Agenda can be seen in Appendix A. No such analysis was conducted assessing the impact of property values in single-family neighborhoods with a high concentration of rentals in North Mankato as part of this review. SECTION 4: Peer Cities Review Offer Best Practices for Rental Density Ordinance Revision 4.1 Peer cities Several Cities are considered comparable to North Mankato in population size, area, and existing amenities. When considering policy changes, the City observes these cities for insight on their efforts towards similar initiatives; observing the successes and challenges they may have encountered. These cities include: • Albert Lea • Belle Plaine • Brainerd • Faribault • Hutchinson • Jordan • New Ulm • Northfield • Owatonna • Red Wing • Shakopee • St. Peter • West St. Paul • Winona These cities were contacted to gain an understanding of the effects of rentals on others and how they deal with issues. The following questions were sent to comparable cities: 1. If your City has considered a rental density ordinance, will you tell us why? 2. Has your City seen property values decrease in those neighborhoods where single-family conversion to rentals has increased? 3. Has your community experienced increases in police calls, nuisances and complaints in those neighborhoods associated with rental concentrations? 4. Can you provide information as to how your community monitors single-family conversion to rental properties? 5. If you have statistical information illustrating the single-family rental housing stock would you be willing to share? 6. Does your City have specific ordinances that regulate single-family rentals for the protection of neighborhood quality of life? Several of the cities that responded don't view increases in rental properties/concentrations as an issue in their community. Most have a type of rental ordinance in place such as a rental registration program or a rental inspection program but nothing that limits the amount of rental licenses that can be issued. However, several of the communities have also experienced increased police calls, nuisances and absentee/problem landlords among renter -occupied units. 'Ko Wang, Terry V. Grissom, James R. Webb and Lewis Spellman, "The Impact of Rental Properties on the Value of Single -Family Residences," Journal of Urban Economics, Volume 30, Issue 2 (1991) 'William M. Rohe and Leslie S. Stewart, "Homeownership and Neighborhood Stability," Housing Policy Debate (Volume 7, Issue 1), 1996. 'John Janmaat, `The Curse of Student Housing: Evidence from Wolfville, Nova Scotia," 2010. 6Ngai Pindell, "Home Sweet Home? The Efficacy of Rental Restrictions to Promote Neighborhood Stability," Scholarly Works (Paper 57), 2009. 101 Page CITY OF NORTH MANKATO Qualitatively, these responses confirm the findings of the literature associated with the consequences of a higher concentration of rentals in single-family neighborhoods. Two communities that have established rental density ordinances, Northfield and West St. Paul, responded to questions regarding the success of their respective ordinances in the community. The City of Northfield stressed that there may be a perceived benefit provided by the ordinance but that the most measurable improvement related to improving neighborhood quality of life can be attributed to the City's Rental Licensing and Inspection Program as a whole. Northfield limits rentals to 20% of homes per block. City Staff mentioned that foreclosures increased following the recession as owners could not convert the property to rental; a problem in which temporary licensing has provided a solution. West St. Paul found success since the implementation of their ordinance in 2006. The City limits rental licenses to 10% per block in order to keep diversity in housing stock in the community by allowing some rentals while maintaining a well- established owner -occupied presence. The City applies a tiered fee system to renter -occupied homes that receive police calls and nuisances. As a result, rentals with the more valid police calls and complaints on a property, pay more for their licenses renewal. Provisional licenses are assigned to those who pose excessive problems and licenses are revoked if issues persist. The City has adopted the International Property Maintenance Code (IPMC) as the guiding document for all rental inspections, they have implemented mandatory Phase I: Management/Owner Training and have changed the licensing term to a rolling calendar. Overall, the City is very happy with the outcome of the rental density regulation in the community. Staff suggests that property values have been stabilized and rental numbers are controlled. West St. Paul is a City of approximately 20,000 residents and the factors leading to the establishment of their successful ordinance fall in line with the desires of North Mankato. Cities like West St. Paul will serve as a model for North Mankato to follow to ensure the appropriate measures are taken to establish an appropriate ordinance. Comments received from Peer Cities can be reviewed in Appendix C. Section 5: Legal Framework Enabling Rental Restrictions Restrictions on the issuance of rental licenses in a municipality brings several constitutional issues into question regarding equal protection, procedural due process, and substantive due process rights under the Minnesota Constitution. Additionally, Appellants questioned the level of zoning power provided cities under Minn. Stat. § 42.357, Minnesota's zoning enabling statute, to regulate housing in a municipality. Recent proceedings involving property owners and the City of Winona, Minnesota have given new light to the constitutional validity of a municipality's efforts to control the quantity of rentals in the City. As discussed before, a common reaction of many individuals when discussing regulating rental density in a municipality is that regulations such as this violate property rights of individuals. However, if a municipality has more to gain regarding the general welfare of its citizens, the Minnesota Constitution (according to the Court of Appeals of Minnesota) upholds this as a valid use of police power (Figure 5) that is not in violation of property rights. 111 Page CITY OF NORTH MANKATO 5.1 Constitutional Validity: Case Study - Dean v. The City of Winona In 2005, the City of Winona enacted an ordinance restricting rental units on a given block to 30 -percent in certain zoning districts. This was prompted by increased parking demands in the neighborhood and concerns of rental concentrations leading to neighborhood blight. Ethan Dean, among others, sued the City after a request for a rental license was rejected. POLICE POWER "...the power to impose such restrictions upon private rights as are necessary for the general welfare." _ The group alleged the Winona City Council exceeded Figure 5. Definition of Police Power (Source: Dean v. City of legislative authority with the 30% rental license per block rule Winona, 843 NW 2d 249 — Minn. Court of Appeals 2014). claiming the ordinance was unconstitutional. The Minnesota Court of Appeals easily concluded against this, finding that the public's interest in regulating rental housing was sufficient to justify municipality's police power delegated by the State of Minnesota to regulate property. Dean and others also raised claims that equal protection, substantive due process, and procedural due process rights had been violated by the imposition of the ordinance. In the case of equal protection, "A party may raise an equal protection challenge to a statute based on the statute's express terms, that is, a 'facial' challenge, or based on the statute's application, that is, an 'as -applied' challenge." State v. Richmond. 730 N.W.2d 62.71 (Minn.App.2007) "A facial challenge to a statute on equal protection grounds asserts that at least two classes are created by the statute, that the classes are treated differently under the statute and that the treatment cannot be justified." In re McCannel, 301 N.W.2d 910, 916 (Minn.1980). Within this context, an equal -protection challenge requires an initial showing that "similarly situated persons have been treated differently." Based on this information, the Court of Appeals of Minnesota rejected equal protection challenges concluding the rule to be facially neutral and that no similarly situated groups were treated differently; the rule was not applied in an arbitrary manner, and in any event would not have resulted in "invidious" discrimination even if similarly situated persons were treated differently.' Substantive due process rights require that "only that a statute not be arbitrary or capricious; the statute must provide a reasonable means to a permissible objective. Stat v. Behl. 564 N.W.2d 560, 567 (Minn. 1997).3 The Court of Appeals of Minnesota found that substantive due process rights weren't violated because the ordinance promoted a valid public purpose of controlling rental density; was enacted after considerable deliberation and analysis, didn't unreasonably, arbitrarily, or capriciously interfere with private interests, and was rationally related to the purpose served.' Appellants also contended that the 30% rule violates their "procedural due process right by unconstitutionally delegating legislative power to a property owner's neighbors." Arguments that the rule delegated legislative power to the neighboring property owner's was also rejected finding that neighbors don't vote on how the rule is applied nor do they make decisions regarding its application.' This case became moot while on appeal to the Supreme Court of Minnesota. The appellants were found to "no longer have an interest in the outcome of the litigation" as the properties in which rental licenses were being sought for were sold. Appellants attempted to raise claims that this issue was of statewide significance and should be ruled on in anticipation of future events to others. Supreme Court Justices found no support for this determination and suggested that these claims would not be pursued. In light of this, the Supreme Court declined to reach the merits of the appellants' claims and dismissed the appeal.' 'Dean v. City of Winona, 843 NW 2d 249 — Minn. Court of Appeals 2014 'Dean v. City of Winona, 868 NW 2d 1—Supreme Court of Minnesota 2015 121 Page MMii CITY OF NORTH MANKATO The facts and rulings for the case of Dean v. The City of Winona can be seen in Appendix D. The breakdown of each Court's ruling (the Court of Appeals of Minnesota and the Minnesota Supreme Court) are located there. 131 Page CITY OF NORTH MANKATO Section 6: North Mankato Trends in Neighborhood Conversion to Rental Property 6.1 Zoning Districts Affected by Regulation The residential properties being considered for further regulation in this study are those family dwellings containing 1-4 rental units located in the following residential zoning districts within the City of North Mankato (Figure 6): 1. R -A: Residential Agricultural District 2. R-1: One -Family Dwelling District 3. R1 -S: One -Family Dwelling, Small Lot District 4. R-2: One- and Two -Family Dwelling District Figure 6. North Mankato Residential Zoning Districts Subject to Rental Density Regulation: R -A, R-1, Rl-S, R-2 141 Page CITY OF NORTH MANKATO A Geographic Information System (GIS) was used for data analysis utilizing parcel data acquired through the City of North Mankato and the Nicollet County Assessor's Office. Only properties within those effected residential districts were taken into consideration. Table 3 provides an assessment of properties containing one- and two-family dwellings in R -A, R-1, R1 -S, and R-2 zoning districts in the City. The total number of properties within those districts increased steadily over the 5 - year period between 2010 and 2014, adding 19 homes per year on average. In 2014, there were 3,757 #Owner -Occupied Homes 3363 3380 3412 3440 3444 #Renter -Occupied Homes 307 309 309 313 313 %Owner -Occupied Homes 92% 92% 92% 92% 92% %Renter -Occupied Homes 8% 8% 8% 8%_ 8% #of Residences Bui I t 8 19 32 32 4 # Built Owner -Occupied Homes 8 ll 32 28 4 Table 3. Assessment of Properties in R -A, R-1, Rl-S, and R-2 Zoning Districts from 2010-2014 in North Mankato. (Source: City of North Mankato, Nicollet County Assessor) properties within the designated districts. Properties that were vacant, contained more than 4 rental units, or were built in 2015 or later were removed from the analysis to ensure data integrity. The ratio of owner -occupied homes to renter -occupied homes in 2014 was approximately 34:3 with rental properties representing approximately 8% of properties in the residential districts. In the City of North Mankato, there is a clear distinction between what is known as Lower North Mankato and Upper North Mankato. Lower North consists of the southeastern portion of the City at the bottom of a large bluff and containing the Central Business District, City Hall, and various residential neighborhoods, parks, and schools and some highway commercial and industrial. The opportunity to develop within this area is extremely limited as it contains the oldest housing stock in the City and is at full capacity. Upper North Mankato, on the other hand, represents a much larger area extending northwest at the top of the bluff and contains highway commercial, regional softball and soccer complexes, most of the industrial uses in the City, and some residential. Upper North contains most of the developable land in the City. Along with the physical separation of Lower North Mankato and Upper North Mankato comes other distinctions as well. Trends in rental licensing, the proportion of renter -occupied single-family to owner -occupied single- family homes, and police calls and associated crime distribution all present differences that distinguish the two geographic areas. Data analysis considered both areas separately when accounting for these factors and based recommendations accordingly. Section 3.1.2 outlines the distribution of properties in Upper and Lower North. 6.2 Rental Licensing Status There are 4,166 total residential parcels in the City of North Mankato with 654 total rental licenses. The City has 1,576 total rental units representing almost 15% of total residential properties. As described in Section 6.1, the analysis in this study only takes into account those family dwellings containing 1-4 rental units within the R -A, R-1, R1 -S, and R-2 residential zoning districts. Within those zones, there are 391 total rental licenses (2016) among 3,757 parcels (Table 3). Renter -occupied properties represent approximately 8% of the total within those zoning districts throughout the City. However, there is a distinction between Upper and Lower North when 151 Page MMli CITY OF NORTH MANKATO observing how these numbers are distributed for each. Figure 10 illustrates the distribution of rentals between Upper and Lower North Mankato. Though Upper North contains a much larger area, there are only 104 total rental licenses present among the 2,312 parcels. This is a much lower distribution than that of Lower North which is subject to smaller lots and older housing stock. Renter -occupied homes represent just under 4% of homes within relevant zoning districts in Upper North. See Table 5 for more information regarding rental licenses and properties in Upper North. Lower North contains 287 total licenses (more than double that of Upper North) among 1,445 parcels (only 63% of Upper North parcels). Renter -occupied homes represent 16% of the housing stock within relevant zoning districts which is significantly greater than the level that the City desires. Table 6 shows this distribution. These numbers identify a clear distinction between Upper and Lower North Mankato. Lower North has a greater rental concentrations of rentals in single-family neighborhoods. The immediate need for limitations on rental license issuance is clear Total M Licenses Total M Parcels Properties Containing More than One License Total Owner -Occupied Parcels Total Renter -Occupied Parcels % Rental Table 4. Rental License Distribution in R -A, R-1, R-15, and R-2 Residential Zoning Districts. (Source: City of North Mankato). Total # L Total tt Properties Containing More than One Total Owner -Occupied Total Renter -Occupied Table 5. Rental License Distribution in R -A, R-1, Rl-5, and R-2 Residential Zoning Districts in Upper North Mankato (Source: City of North Mankato). Total tt L Total tt Properties Containing More than One Total Owner -Occupied Total Renter -Occupied in Lower North. However, a closer look at the trends in rental 1 Yu nernai Table 6. Rental License Distribution in R -A, R-1, Rl-5, licensing reveal increases in the issuance of licenses in Upper and R-2 Residential Zoning Districts in Lower North and Lower North that could lead to high percentages in the Mankato (Source: City of North Mankato). future 6.3 Trends in Rental Licenses The conversation of single-family homes to rental properties is trending upward and projections show that these trends will continue. Keeping in mind the purpose of this study is to find the appropriate balance for owner/renter-occupied single-family homes, upward trends in license issuance should be observed carefully for decision making purposes. If left unchanged, upward trends in rental licenses will lead to increased concentrations in renter -occupied properties. Figures 7 —9 show trends in rental licensing and an average annual growth rate for each. Overall, the amount of licenses is increasing annually at 4.2% representing an approximate increase of 14 licenses per year. If this trend persists, there will be 70 new licenses in the next five years raising the 161 Page MMli CITY OF NORTH MANKATO s28 Sli aa3 avx aea 653 437 420 333 405 38] ]89 47 ]GO xa 301 313 Average Annual Growth Rate. Gig 249 2S3 26 ��������'''''VVV VVVVVVV��VVVVVVVV���''I�VVVVVVVVVVVV' 4.2% 213 219 Figure 7. Trends in Rental License Issuance — City Wide (Source: City of North Mankato). Figure S. Trends in Rental License Issuance — Upper North (Source: City of North Mankato). Figure 9. Trends in Rental License Issuance — Lower North (Source: City of North Mankato). 171 Page CITY OF NORTH MANKATO percentage of renter -occupied homes from 8% to nearly 10%. Within a 10 year period, these numbers will rise to a potential 150 new licenses raising the percentage to nearly 12% within the City. Though Upper North has a smaller percentage of rental properties overall (approximately 4% for Upper North vs. 16% for Lower North), license issuance is increasing at a faster rate (4.8%) than Lower North (4.0%) annually. This growth is something that staff recommends be addressed in the ordinance revision to maintain a serviceable balance of renter -occupied homes in Upper North. With the current 4.8% average annual growth rate, Upper North adds on approximately 4.3 rental licenses per year, but the development of 19 new homes per year in the specified zoning districts offsets the proportion of renter -occupied homes in Upper North so rental concentrations have not approached levels like those exhibited in Lower North. - Renter -Occupied Single Family Homes R -A, R-1, R9 -S, and R-2 Zoning Districts i�Yo]�T Upper North Mankato Lower North Mankato It 1. ♦_.- r�rrl ' r `a WK It • CTT. - Ylt� j', -Il" too - J Figure 10. Distribution of Rental Properties in Upper and Lower North Mankato (Source: City of North Mankato, Nicollet County Assessor). 181 Page CITY OF NORTH MANKATO Rates of increases in Lower North present a different scenario that raises concerns. With existing trends, Lower North will acquire approximately 10 more licenses per year, leading to approximately 50 new licenses in five years. Though some properties contain more than one license, it is more likely that this will mean the conversion of 50 more homes to renter -occupied and will raise the amount of renter - occupied to approximately 280 properties or 19.4% from 16%. Trends from 2010-2014 show that once a rental license is obtained, renter -occupied properties seldom convert back to owner -occupied. With the unlikelihood of properties converting back to owner - occupied and no new construction to add more housing stock, the threat of rental properties overtaking Lower North is real and the application of the rental density ordinance is a necessary measure to maintain neighborhood stability. 6.4 Police Calls and Associated Crime Distribution Police call data was collected for the years 2010 through 2014 to remain consistent with property data. Through GIS analysis, only calls occurring at properties contained in the relevant zoning districts were used to determine police call significance. Police calls at renter - occupied homes were compared to those at owner -occupied homes and a ratio of occurrences to properties was developed to show the impacts of increased police activity with rental properties (See Tables 11-14 for more information on ratios). Tables 7 - 9 provide comparison of the number of properties in the residential zones susceptible to the rental density regulation. The number of homes in these districts has increased slowly but steadily over the past five years with percentages of police calls to owner- and renter -occupied homes growing similarly. While upward trends in police calls in the City are steady, what is more significant is that renter - occupied homes represent approximately 8% of the housing stock in these zones while also representing 21% of police calls in the districts City wide. Of even more significance is that Lower North renter -occupied homes are responsible for approximately 31% of total police calls within relevant residential zoning districts. This represents a much higher occurrence of police calls to rentals in CITY OF NORTH MANKATO Figure 11. Renter -Occupied Home in Lower North Mankato. The stairs leading to the front entryway are broken and do not have a railing, paint is in poor condition, front window to home is in disrepair, and lawn is in poor condition among other things. Table 7. Percentages of Owner- and Renter -Occupied Homes and Associated Police Call Percentages in North Mankato. (Source: City of North Mankato, Nicollet County Assessor). Table 8. Percentages of Owner- and Renter -Occupied Homes and Associated Police Call Percentages in Upper North Mankato. (Source: City of North Mankato, Nicollet County Assessor). • Will 1442 1444 1445 1445 1443.4 %Owner -Occupied Homes Total#of Properties 2229 2247 2277 2308 2312 %Owner -Occupied Homes 97% 96% 97% 96% 96% %Renter -Occupied Homes 3% 4% 3% 4%.4% 27% %PC at Owner -Occupied Homes 94%li 95% 96% 93%. 93% %PC at Renter -Occupied Homes 6% 5% 4% 7% 7% Table 8. Percentages of Owner- and Renter -Occupied Homes and Associated Police Call Percentages in Upper North Mankato. (Source: City of North Mankato, Nicollet County Assessor). • Total#of Prop erti es 1442 1444 1445 1445 1443.4 %Owner -Occupied Homes 84% 84% 84% 84% 84% %Renter -Occupied Homes 16% 16% 16% 16% 16% %PCat Owner -Occupied Homes 67% 73% 72%I 70% 69% %PC at Re nter-Occu pied Homes 33% 27% 28%x, 30% 31% Table 9. Percentages of Owner- and Renter -Occupied Homes and Associated Police Call Percentages in Lower North Mankato. (Source: City of North Mankato, Nicollet County Assessor). 191Page Ratio of Police Calls tol 1:4.15 1:5.55 1:2.86 Renter -Occupied Homesl 1: 1.51 1: 3.22 1: 1.28 Table 11. Ratio of Police Calls to Owner -Occupied and Renter -occupied properties in North Mankato (Source: City of North Mankato). Lower North than in Upper North which has only 7% of police calls occurring at renter -occupied properties. This further reinforces the need to regulate and monitor Lower North properties using a different approach to ensure these numbers do not increase. Police call data in this study illustrates perhaps the most compelling evidence of the effects of rental concentrations on neighborhood quality of life. Police call categories considered in the analysis include personal crime, property crime, juvenile offenses, traffic related crimes, neighborhood support, and other crimes. A breakdown of data categories and associated actions can be seen in Table 10 and the distribution of occurrences City Wide, in Upper North, and in Lower North can be seen in Figure 12. Further detail on police calls can be seen in the North Mankato Police Department's 2015 Year End Report in Appendix E. Not all police calls are associated with crime. Some are for assistance, funeral escorts and information. However, these represent a small portion of calls (See Appendix E for more detail). A deeper review of the distribution of types of police calls can be seen in Figure 12 which addresses these occurrences as they happen City Wide as well as in Upper and Lower North Mankato. Figure 12 suggests that percentages of call occurrences are similar among Upper and Lower North, although, the amount of occurrences is significantly higher in Lower North in every category. How does this relate to levels of rental property concentrations? Ratios were developed, as discussed previously, to show a call occurrence per property relationship Table 11. Figure 12. Distribution of Police Call Types in R -A, R-1, Rl-S, and R-2 Residential Zoning Districts; City Wide (left), Upper North (middle), and Lower North (right) Mankato. (Source: City of North Mankato). 201 Page CITY OF NORTH MANKATO Homicide Alcohol Terrori sti c Threats Runaways Criminal Sexual Conduct Curfew Robbery Tobacco Assault All Other Reports Domestic Assault Harassment Harassing Communications Accident Reports on Public Property Child/Vulnerable Adult Protection Accident Reports on Private Property Domestic Disturbance Bicycle Accidents (No MotorVehicle) Disorderly Conduct Driving Underthe Influence All Other Reports Parking Violations Violation Road & Driving Complaints Residential Burglaries Non-Residential Burglaries Medicals Theftfrom Building Animal Control Theftfrom Vehicle Public Assists Motor Vehide Theft Suspicious Activity Motor Vehide Tampering Assist Other Law Enforcement Agencies Financial Theft Gun Purchase Permits Applications Shoplifting Information Only Property Damage Civil Complaints Arson/Negligent Fires Alarm Calls Trespassing Welfare Checks All Other Reports Residence Checks Funeral Escorts Reports Narcotics Underage Consumption rer Weapons Liquor Violations AlIOther Reports Table 10. North Mankato Police Call Categories. (Source: North Mankato Police Department 2015 Year End Report). Ratio of Police Calls tol 1:4.15 1:5.55 1:2.86 Renter -Occupied Homesl 1: 1.51 1: 3.22 1: 1.28 Table 11. Ratio of Police Calls to Owner -Occupied and Renter -occupied properties in North Mankato (Source: City of North Mankato). Lower North than in Upper North which has only 7% of police calls occurring at renter -occupied properties. This further reinforces the need to regulate and monitor Lower North properties using a different approach to ensure these numbers do not increase. Police call data in this study illustrates perhaps the most compelling evidence of the effects of rental concentrations on neighborhood quality of life. Police call categories considered in the analysis include personal crime, property crime, juvenile offenses, traffic related crimes, neighborhood support, and other crimes. A breakdown of data categories and associated actions can be seen in Table 10 and the distribution of occurrences City Wide, in Upper North, and in Lower North can be seen in Figure 12. Further detail on police calls can be seen in the North Mankato Police Department's 2015 Year End Report in Appendix E. Not all police calls are associated with crime. Some are for assistance, funeral escorts and information. However, these represent a small portion of calls (See Appendix E for more detail). A deeper review of the distribution of types of police calls can be seen in Figure 12 which addresses these occurrences as they happen City Wide as well as in Upper and Lower North Mankato. Figure 12 suggests that percentages of call occurrences are similar among Upper and Lower North, although, the amount of occurrences is significantly higher in Lower North in every category. How does this relate to levels of rental property concentrations? Ratios were developed, as discussed previously, to show a call occurrence per property relationship Table 11. Figure 12. Distribution of Police Call Types in R -A, R-1, Rl-S, and R-2 Residential Zoning Districts; City Wide (left), Upper North (middle), and Lower North (right) Mankato. (Source: City of North Mankato). 201 Page CITY OF NORTH MANKATO In Tables 14-15, the "Ratio of PC" rows represent the number of homes impacted by one call. For example, in Upper North in 2014, there was one police call per every 5.94 owner -occupied home and 1 police call per every 2.77 renter -occupied homes. This ratio provides evidence that rental properties in North Mankato, specifically in R -A, R-1, R1-5, and R-2 zoning districts, exhibit higher occurrences of crime. City wide, the data suggests that there is one occurrence for every 4.15 owner -occupied properties and one occurrence per ever 1.66 renter - occupied properties. Upper and Lower North exhibit different ratios but succeed in maintaining higher occurrences of police calls to renter -occupied homes. Upper North exhibits one occurrence for every 5.55 owner - occupied homes and one occurrence for every 3.22 renter - occupied homes. Lower North exhibits one occurrence per every 2.86 owner -occupied and one per every 1.28 renter -occupied. This evidence supporting increased police calls to renter - occupied homes is an important factor in neighborhood quality of life and the determination of regulating rental density in the City. It is clear that increased rental concentrations will lead to deterioration of neighborhoods if left unchecked and unregulated. 6.5 Rental Strikes Rental Strikes are regulated under City Code Section § 151.11 Conduct on Licensed Premises (Appendix B). Rental Strikes are Table 12. Police Calls to Properties City Wide (Source: City of North Mankato). Table 13. Police Calls to Properties in Upper North (Source: City of North Mankato). issued in response to occurrences of crimes and disturbances. If an occupant receives three strikes against them within 12 months after any two previous instances for which notices were sent, the license for the rental unit may be denied, revoked, suspended, or be subject to another penalty imposed by City Council. 'Sage Policy Group, "There is a Rational Basis for Rent Stabilization in College Park, Maryland," April 2005. 10Terance J. Rephann, "Rental Housing and Crime: The Role of Property Ownership and Management, `The Annals of Regional Science (43), 2009. 11Duncan Associates, "Analysis of Issues Regarding Student Housing Near the University of Florida," April 2002. 12State College Burrough Staff, "Sustainable Neighborhoods in State College Borough," June 8, 2009. 211 Page MMli CITY OF NORTH MANKATO Total# of Police Calls IPC) 945 1088 982 1086 1059 1032 PC at Owner -Occupied Homes 738 900 801 857 827 824.6 PC at Renter -Occupied Homes 207 188 181 229 232 207.4 %PCatOwner-Occupied Homes 78% 83% 82% 79% 78% 80% %PC at Renter -Occupied Homes 22% 17% 18% 21% 22% 20% #PC per Owner-Occupi ed Homes 0.3 0.3 0.3 0.3 0.3 0.3 #PC per Renter-Occupi ed Homes 0.7 0.6 0.6 0.7 0.7 Ratio of PC to Owner -Occupied Homes* 4.6 1.5 3.8 1.6 4.3 1.7 4.0 1.4 4.2 1.3 11.5 Ratio of PCtoRerrter-Occupied Homes* Table 12. Police Calls to Properties City Wide (Source: City of North Mankato). Table 13. Police Calls to Properties in Upper North (Source: City of North Mankato). issued in response to occurrences of crimes and disturbances. If an occupant receives three strikes against them within 12 months after any two previous instances for which notices were sent, the license for the rental unit may be denied, revoked, suspended, or be subject to another penalty imposed by City Council. 'Sage Policy Group, "There is a Rational Basis for Rent Stabilization in College Park, Maryland," April 2005. 10Terance J. Rephann, "Rental Housing and Crime: The Role of Property Ownership and Management, `The Annals of Regional Science (43), 2009. 11Duncan Associates, "Analysis of Issues Regarding Student Housing Near the University of Florida," April 2002. 12State College Burrough Staff, "Sustainable Neighborhoods in State College Borough," June 8, 2009. 211 Page MMli CITY OF NORTH MANKATO The City logs rental strikes specific to properties to monitor compliance. Figure 13 illustrates the areas of high occurrences of rental strikes in relationship to rental license concentrations within the City. This confirms North Mankato's experience with findings of the literature reviewed that suggests rental concentrations can lead to increases in nuisance complaints, City Code violations and crime incidents (Sage Policy Group', Rephannlo Duncan Associates", State College Borough1z). Many of the clusters represent repeat offenders and high concentrations of offenders. This provides further evidence of the correlation between rental concentrations and decreases to neighborhood stability. Specifically, this reinforces that the problems are greater in respect to Lower North Mankato lending to suggestions that a different approach be taken within that area. Figure 13. Clusters of Rental Strikes in Relation to Areas of High Concentrations of Rental Licenses (Source: City of North Mankato). 6.6 Nuisances and complaints in single-family residential neighborhoods Over a five-year period, from 2011 to 2015, there were 77 nuisance violations reported to the City of North Mankato that required action from City Staff. Rental properties represent 8% of properties in relevant zoning districts in the City and over 10% of these were calls to rental properties in response to violations of City Code consisting of (but not limited to) improper storage of materials; illegal parking of vehicles, trailers, boats, etc.; lack of maintenance to buildings, fences, etc.; and storage of unlicensed or inoperable vehicles. 221 Page CITY OF NORTH MANKATO City Staff have expressed these numbers represent only events on record. In previous years, staff has not recorded nuisances. Instead, the City is in frequent, direct phone contact with landlords and property management companies to resolve nuisance violations Table 15. City of North Mankato Nuisance Violations on Record: 2011 — 2015. and complaints. Staff suggests increases (Source: City of North Mankato). in numbers outlined in Table 15 would occur if all events were recorded. Discussion of these events, though not recorded, gives further indication of adverse impacts of rental properties within North Mankato neighborhoods. Another adverse effect was analyzed considering the number of complaints for lack of grass and weed maintenance on properties (Table 16). Again, not all occurrences of grass and weed complaints are recorded unless they persist. The City's policy is to mow the property and charge the owner for the mowing in the event that requests for compliance are ignored. Data supports claims of renter -occupied properties contributing to a higher percentage of nuisances and complaints in North Mankato. Renter -occupied homes represent 15% of properties sited for poor grass and weed maintenance. MMli CITY OF NORTH MANKATO 2015 24 22 2 8% 2014 7 5 2 29% 2013 19 19 0 0% 2012 12 10 2 17% 2011 15 13 2 13% Totalsi 77 69 8 10% companies to resolve nuisance violations Table 15. City of North Mankato Nuisance Violations on Record: 2011 — 2015. and complaints. Staff suggests increases (Source: City of North Mankato). in numbers outlined in Table 15 would occur if all events were recorded. Discussion of these events, though not recorded, gives further indication of adverse impacts of rental properties within North Mankato neighborhoods. Another adverse effect was analyzed considering the number of complaints for lack of grass and weed maintenance on properties (Table 16). Again, not all occurrences of grass and weed complaints are recorded unless they persist. The City's policy is to mow the property and charge the owner for the mowing in the event that requests for compliance are ignored. Data supports claims of renter -occupied properties contributing to a higher percentage of nuisances and complaints in North Mankato. Renter -occupied homes represent 15% of properties sited for poor grass and weed maintenance. MMli CITY OF NORTH MANKATO Table 16. City of North Mankato Grass and Weed Complaints on Record: 2011- 2015. (Source: City of North Mankato) 231 Page 2015 51 45 6 12% 2014 50 41 9 18% 2013 26 22 4 15% 2012 51 42 9 18% 2011 21 19 2 10% Totals 199 169 30 15% Table 16. City of North Mankato Grass and Weed Complaints on Record: 2011- 2015. (Source: City of North Mankato) 231 Page Section 7: Seeking a Right Balance of Owner -and Renter -Occupied Homes A healthy mix of owner- and renter -occupied units is important for a community and many communities strive to maintain 65 - 70% of their housing units owner -occupied." The North Mankato Comprehensive Plan identifies conditions in 2012 utilizing 2008 to 2012 estimates from the American Community Survey by the U.S. Census Bureau (Table 17). 2012 data suggests roughly 4,012, or 73.1%, of housing units in North Mankato were owner -occupied, generally meeting the 65 - 70% goal and giving greater cause to seek a policy that ensures this stability continues. More Housing Tenure by Type - 2012 Percent Percent Percent Percent Owner Percent Owner Owner Renter Percent Renter Renter Units per Occupied Owner Occupied Occupied Occupied Renter Occupied Occupied Structure Units Occupied County State Units Occupied County State Single -Family Detached 3,350 83.5% 85.5% 85.0% 143 9.7% 19.0% 20.0% Single -Family Attached 298 7.4% 5.3%1 7.7%1 148 10.0%1 12.1% 7.9% 2-4 Unit Multi - Family 87 2.2% 1.4% 1.2% 332 22.4% 20.5% 12.8% 5+ Unit Multi - Family 37 0.9% 0.6% 2.6% 796 53.8% 45.4% 57.5% Mobile Home 240 6.0% 7.2% 3.5% 60 4.1% 3.0% 1.8% Total Units 4,012 100% 1009/ 100%1 1,479 100% 100% 100% Table 17. North Mankato Comprehensive Plan: Housing Tenure by Type (Source: U.S. Census Bureau, 2008-2012 American Community Survey 5 -Year Estimates. Housing Tenure by Type -2014 Percent Percent Percent Percent Owner Percent Owner Owner Renter Percent Renter Renter Units per Occupied Owner Occupied Occupied Occupied Renter Occupied Occupied Structure Units Occupied County State Units Occupied County State Single -Family Detached 3433 84.40/. 88.0°/ 85.1% 179 11.01/8 19.9°/ 20.7°/ Single -Family Attached 260 6.4% 4.9% 7.7% 167 10.3% 10.4% 8.3% 2-4 Unit Multi - Family 130 3.2% 1.5% 1.2% 349 21.5% 20.0°/ 12.60/. 5+ Unit Multi - Family 16 0.4% 0.3% 2.6% 824 50.80/. 45.0% 56.7% Mobile Home 228 5.6% 5.2% 3.5% 102 6.3% 4.7% 1.6% Total Units 4,068 100%1W/. 100'/ 1,623 100% 100% 100% Table 18. Housing Tenure by Type (Source: U.S. Census Bureau, 2010-2014 American Community Survey 5 -Year Estimates. recently, 2010 to 2014 American Community Survey 5 -Year estimates suggest the City has increased its housing stock by approximately 56 owner -occupied and 144 renter -occupied units. This identifies an almost 10% increase in renter - occupied units in the community in comparison to a 1.3% increase in owner -occupied units (Table 18). During the two- year period between 2012 and 2014, the City issued 27 new rental licenses within the R -A, R-1, R1 -S, and R-2 zoning districts alone issuing approximately 14 new licenses per year in these districts, as mentioned previously in Section 6.3. 241 Page CITY OF NORTH MANKATO While conversion of some owner -occupied homes to rental housing is necessary to accommodate market forces and provide housing choices, too much turnover within established neighborhoods can result in the adverse impacts described in Section 3. For these reasons and to prevent the effects of the potential problems discussed in Section 3, the North Mankato Comprehensive Plan recommends a policy that permits a limited number of rental units within a specified area be adopted. 7.1 Addressing Potential Concerns Raised by Citizens The purpose of the ordinance is to ensure rental regulation allows a management balance among the mix of owner- and renter -occupied homes that will allow continued increase of rental opportunities while not forcing permanent residents out of neighborhoods as a result of rental concentrations. The draft rental density ordinance can be seen in Appendix B. Though literature suggests that rental concentrations lead to increases in adverse effects, it should not be overlooked that many neighborhoods dominated by rental properties are stable and attractive places to live. Not everyone is capable of owning a home and others may not desire homeownership for a variety of reasons. Researchers caution against the perception that increased owner -occupied properties in a neighborhood will remedy all neighborhood problems. Factors contribute to neighborhood issues and, likewise, some owner - occupied properties are also responsible for increases in nuisance complaints and police call incidence. In regulating rental license issuance, the City desires to maintain and support what they feel to be a healthy mix of existing property tenure while considering the aforementioned factors.l" 16William M. Rohe and Leslie S. Stewart, "Homeownership and Neighborhood Stability," Housing Policy Debate (Volume 7, Issue 1), 1996. 251 Page MMli CITY OF NORTH MANKATO Section 8: Findings and Conclusion The findings of this study support the City's decision to establish a moratorium on the issuance of rental licenses and to pursue the adoption of revisions to Chapter 151, Section 18 of the City Code by the North Mankato City Council. Annual licenses issued are trending upward and police calls, rental strikes, and nuisance violations are greater among rentals than owner -occupied housing. Further, the ability of a municipality to regulate rental density is engrained in the police powers delegated to that community through the State Constitution which is defined as: "...the power to impose such restrictions upon private rights as are necessary for the general welfare." The key findings of this study are outlined below: The rental density ordinance is rooted in the North Mankato Comprehensive Plan which contains a goal in Chapter 4 — Housing to "Provide attractive and desirable residential properties' with policy 2.1.5 to "Consider a policy that permits a limited number of rental units in a specified area to minimize turnover of owner -occupied single-family homes to rental units within established neighborhoods." The literature review demonstrates that there are relationships between homeownership and neighborhood stability. Homeowners have more at stake with their properties and, in turn, take better care maintaining them. In doing so, property values are maintained and may increase and social conditions may be improved as another result. Along with the maintenance of property values comes maintenance of property tax revenues collected by the City benefitting all in the community. Other Minnesota cities have adopted similar ordinances for various reasons and have found success. Cities like Northfield and West St. Paul have found that the combination of the rental density ordinance along with a rental licensing and inspection program has led to improvements in their communities. Furthermore, the four cities identified, established their ordinances many years ago and continue to maintain them. This shows that they are indeed working in the community. Research supports and data findings suggest that a clear problem exists with unregulated rental concentrations in urban environments. In North Mankato, data collection and analysis has revealed that the issues exist in the City. Rental license issuance is trending upward on average of 4.3% per year City Wide with no signs of slowing down in the future. At this rate, the City would see increases the number of renter -occupied properties amounting to roughly 70 new rental licenses in the next 5 -year period. Upper North Mankato is positioned to better absorb additional rental licenses (currently exhibiting only 104 rental licenses; 4% rental properties) than Lower North as the rate of new development and currently low numbers of renter - occupancy assist to offset any effects. However, Upper North Mankato licenses are increasing at faster rate (4.8%) than Lower North (4.2%) annually and this growth may spur the need for enhanced monitoring in the future to maintain the desired balance of renter -occupied homes in Upper North. Almost fully developed, Lower North stands to be altered by increased rental licenses without regulation. At 16% renter - occupancy, Lower North currently exceeds the level determined by the City as a benchmark for neighborhood stability (10% per block). If rental licensing trends continue in Lower North, the current rate of growth could add 50 new licenses in a 5 -year period, raising that percentage to over 19%. That figure will only increase as offsetting factors of new development and low numbers of renter -occupied properties are not applicable to the area. North Mankato data also suggests that increased crime, nuisances and complaints are linked to concentrations of rental properties in the community. Renter -occupied homes represent 8% of the housing stock in R -A, R-1, R1 -S, and R-2 zoning districts throughout the community as well as 22% of all police call occurrences. In Lower North, renter -occupied 261 Page MMli CITY OF NORTH MANKATO homes represent 16% of properties and are responsible for 31% of all police calls. When compared to Upper north (renter -occupied homes representing 3.6% and responsible for 7.2% of police calls), the disparity between the two areas increases and it becomes clear that there is a real issue surrounding detrimental effects of rental concentrations community wide, but more so in Lower North Mankato. The ratios developed to show the relationship between the occurrence of police calls to owner -occupied and renter - occupied housing units helps to reinforce these findings. City wide, there is one police call to every 4.15 owner -occupied homes and one police call to every 1.51 renter -occupied homes. In Upper North, this relationship is one police call to every 5.55 owner -occupied homes and one to every 3.22 renter -occupied home. Finally, in Lower North, there is one police call to every 2.86 owner -occupied homes and one to every 1.28 renter -occupied homes. Rental strikes highlight areas of repeat offenders in the City and those areas are connected to the densest areas of rental concentrations in the community. This provides yet another measure of the effects of rentals on the community as well. These findings give merit to the literature that suggests there are adverse effects associated with rental property concentrations and provide further evidence of the presence of those effects in North Mankato. In light of these findings, efforts to establish an ordinance in the community that will limit the issuance of rental licensing to protect neighborhood stability seem to be warranted and should be pursued by the City of North Mankato. Section 9: Policy Recommendations In response to growing trends of residential conversion to rental, staff recommend the City Council consider amendments to the rental licensing ordinance to limit home rentals to 10% per block within R -A, R-1, R -1S, and R-2 residential zoning districts. The City believes this regulation will balance two goals of the Governing Body: First, it will continue achieve accessibility for all people of all incomes to reside in North Mankato because rental licenses will continue to be available. Second, it will apply a ceiling on the total amount of property that may be converted to rentals in the R -A, R -A, R -1S, and R-2 zoning districts so that increased cost of service associated with these properties does not accelerate at a faster rate than resources available to service the properties. Third, the increase in conversion of single and two family homes to rentals is especially active in Lower North Mankato. For several years the City and Community has invested in neighborhood and regional projects with the goal of maintaining the attractiveness of Lower North Mankato as a neighborhood for families and seniors of all ethnicities and income levels. The return on this investment may be more difficult to obtain as homes occupied by families and seniors increasingly become converted to rentals. Based on the findings of this study the following recommendations are provided for the City of North Mankato for the establishment of a strong rental property licensing and Inspection Program: Policy 1: The City should pursue the establishment of §151.18 Rental Density Ordinance. A rental density ordinance limiting rental license issuance to 10% per block in the community will increase the potential for successful achievement of neighborhood stability in North Mankato. This ordinance may consider the differences within Upper and Lower North Mankato and address them separately with different limitations for each. Policy 2: The City should pursue the establishment of § 151.19 Temporary Rental Licenses. Other communities have suggested that the establishment of a temporary rental license ordinance alleviates some unforeseen circumstances that may occur in relation to homeowners who are unable to sell properties but cannot afford the property or do not reside there. 271 Page MMli CITY OF NORTH MANKATO Policy 3: The City should adopt increased parking requirements for rental properties. As illegal parking is an issue associated with rental concentrations, the City should pursue increased parking requirements that will assist with controlling offenders at rental properties. Policy 4: The City should increase efforts for documenting grass, weed, and nuisance complaints. The City should set up a spreadsheet database to enhance documentation and better monitor grass, weed, and nuisance complaints to increase understanding of the adverse effects of these complaints on the community. 281 Page CITY OF NORTH MANKATO Appendices CITY OF NORTH MANKATO 291 Page A. Minnesota Association of City Attorneys Educational Conference (2014) — Conference Agenda 301 Page CITY OF NORTH MANKATO _ Minnesota Association of City Attorneys Educational Conference February 7-8, 2014 Sheraton, Bloomington a Conference Agenda Saturday. February 8, 2014 Moderator for the Day: Michael Couri, President, Minnesota Association of City Attorneys 8:00 Ara Check-in and Refreshments Grand Ballroom Foyer 8:30 Ethical Issues Faced by Governmental Attorneys — What, me worried? Grand Ballroom + Organization as client + Representing multiple clients + Client contact issues Craig Klausing, Senior Assistant Director, Office of Lawyers Professional Responsibility 9:30 Regulation of e -Cigarettes and Synthetic Drugs Grand Ballroom + Prohibition on use, sale, etc. + Are e -cigarettes bannable? + Duluth example Gunnar Johnson, City Attorney, City of Duluth Nathan LaCoursiere, Assistant City Attorney, City of Duluth Justin Templin, Attorney, Hoff, Barry & Kozar, P.A. Eileen Wells, City Attorney, City of Mankato 10:30 Refreshment Break Grand Ballroom Foyer 10:45 Short Shots Grand Ballroom Participating Moderator., TerryAdkins, City Attorney, City of Rochester + "And you thought the 6o -day rule only applied to zoning matters" Erik Nilsson, Assistant City Attorney, City of Minneapolis + "Sittin' On the Dock of the Bay (of delinquent water and sewer bills)" Jeanette Behr, Research Manager, League of Minnesota Cities + "Campgrounds to rental housing: Are there no limits?" George Hoff, Attorney, Hoff, Barry and Kozar, P.A. + "You Got A Warrant?" Bridget McCauley Nason, Attorney, Le Vander, Gillen & Miller, P.A. + "Tim's favorites from the listserv" Timothy Kuntz, Attorney, LeVander, Gillen & Miller, P.A. 12:00 NOON Wrap-up and Questions/Comments Grand Ballroom Foyer 12:15 PM Adjournment Mark your calendars now for the Legislative Update ... Thursday, June 12, 2014 — Minneapolis Marriott Northwest, Brooklyn Park GTS EDUCATIONAL EVENTS — KNOWLEDGE To ACTION A0000k GTS Educational Events is a non-profit organization dedicated to helping those who provide services to Minnesota citizens and communities meet current needs for knowledge and educational events skills and prepare for the changes to come. Since 1976 we have been collaborating with policymakers, staff, appointed officials from all levels of government and all types of nonprofit agencies — and their collaborators in associations, business, higher education and community groups. ANCIENT CAMPGROUNDS/RENTAL HOUSING — LRWTS By George C. Hoff and Shelley M. Ryan Hoff, Barry & Kozar, P.A. 775 Prairie Center Drive, Suite 160 Eden Prairie, MN 55344 (952)941-9220 I. CAN THE DENSITY OF RENTAL HOUSING IN TRADITIONAL SINGLE FAMILY NEIGHBORHOODS BE CONTROLLED? A. Increasing interest by some communities in slowing the conversion of single family homes to rental 1. Stability 2. Improve quality of life for families 3. Lessened nuisance complaints caused by concentration 4. Improved property maintenance B. Methods of control 1. Condition of rental license 2. Zoning control C. Dean, et al. v. City of Winona Third District Court File No. 85 -CV -11-2329; currently pending before the Minnesota Court of Appeals as No. A13-10281 1. Brought by the Institute for Justice in the name of three parties who, at least initially, did not have rental licenses based on the rental limitation 2. City has wrestled with the problems caused by rental concentration since at least 2005; record before the City demonstrated various impacts by police and other calls, including nuisance 3. When the case was initiated, the rental provision was in the zoning code; it was then moved to the licensing code 4. Study done by Hoisington Koegler Group showing the effect of concentration of rental housing based on a national literature review and local data. Conclusion was that the concentration of rental "results in a negative impact to the quality and livability of residential neighborhoods"2 5. Study used as findings to support the adoption of rental limitation in the licensing ordinance (however, the wording and impact were identical to that when in the zoning ordinance) 6. Sued under the Minnesota Constitution only, with several theories: a. Ultra Vires 1) Zoning ordinance in disguise 2) Under Minn. Stat. § 462.357, City is limited to regulating "use." This ordinance controls the occupant, not use of residential property Several years ago, the City of Mankato rental limitation ordinance was challenged. The case was dismissed in its entirety, including the rental challenge (on some of the same theories as presented in Dean). Plaintiff lacked standing to challenge the rental ordinance because the building was hazardous and could not be rented. Mankato v. DiJ 2011 WL 589613 (Feb. 22, 2011). : The Study is attached. b. Procedural Due Process — the City unlawfully delegated its licensing authority to residents c. Equal Protection — fist come first serve issuance of licenses results in some getting licenses, others not, even though all are similarly situated d. Substantive Due Process — regulation is arbitrary and capricious 7. Defenses and District Court3 a. Ultra Vires 1) Plaintiff argued that the City's only authority emanates from zoning and Minn. Stat. § 462.357, which does not allow the regulation of a class of occupant — i.e. rental as opposed to owner -occupied 2) City argued that the use controlled is the "commercial use" of the premises, not the occupant, therefore within its zoning authority 3) Alternatively, if it does not fall within authority given for zoning, it is a general police power regulation analyzed as to whether the object is a matter of promoting public welfare and whether the regulation is reasonably related to that end 4) District Court dismissed claim finding a valid zoning ordinance, and even if not, authorized under broad police power b. Equal Protection 1) Plaintiff argued under State v. Russell that the state constitution imposes a 3 part test — distinctions drawn must be genuine and not "fanciful;" class must be relevant to purpose and there must be an "evident connection" between the class and the remedy; and purpose must be one state can legitimately seek to achieve 2) City argued that similar situated persons are not treated differently and even so, the ordinance satisfies the Russell test 3) District Court agreed with both of the City's arguments and dismissed the claim c. Substantive Due Process 1) Plaintiff conceded promoting livability is a legitimate object of government, argued the density control was not sufficiently related to a legitimate goal. They offered an affidavit which challenged the methodology for the first time in court (they were invited to the city council meetings at which the regulation and study were adopted) 2) City argued that if the ordinance satisfies the heightened state equal protection test, then substantive due process is satisfied; disagreement over which expert to follow does not constitute a basis to find that no "substantial relationship" between goal and regulation can be found 3) District Court agreed with the City and dismissed the claim d. Procedural Due Process 1) Plaintiff argued that by limiting the number of licenses and providing a first come first serve standard for issuance, a neighbor who chooses to apply gives the neighbor legislative control over who subsequently gets a license, and as such is an unlawful delegation of legislative authority ' District Court Decision is attached. 2 2) City argued that the fust come fust serve standard is neutral and not a delegation; there must be some limitation; and any due process issues relate to the City action in the adoption of the regulation (no such challenge was made) 3) District Court agreed with the City and dismissed the claim 8. Court of Appeals a• Argued on December 12, 2013. Decision by March 12, 2014. b. Active panel 1) Focused primarily on two issues and seemed to agree with the City a. If not authorized under zoning, proper police power regulation b. If neutral classification in legislation, uneven results of uniform application cannot give rise to equal protection claim H. WAPITI V. ELK RIVER, 840 N.W.2D 43 (MINN. 2103)4 A. Campground in the City of Elk River operating in some form back to the 1970's when in a township B. Annexed into the City in early 1980's C. Voluntarily applied for a CUP to allow continued operation as a campground; CUP issued in 1984 D. CUP became non -conforming in 1988, but campground continued to operate E. Fire destroyed central store/bar and sanitary building in 1999 F. Because use was non -conforming, City allowed the building to be rebuilt with a ten year IUP, which expired in 2010 G. City imposed conditions on a new IUP, which were not met by the Campground, and the IUP expired H. City revoked the CUP following a hearing for violating permit conditions, including the allowance of permanent residents I. Plaintiff sued on the theory that once the CUP became non -conforming, it could not be revoked; the termination provisions of Minn. Stat. § 462.357 must be used (i.e. abandonment, etc.); and that they retained their alleged non -conforming use rights predating 1984 J. Before both the District Court and the Court of Appeals, Plaintiff conceded that its nonconforming use rights emanated from the 1984 CUP; consequently, there was no need for discovery or litigation as to the claimed pre -1984 nonconforming use rights K. District Court, with no rationale, ruled against the City L. Court of Appeals reversed, holding that the CUP continued; the City had the authority to revoke the permit under Minn. Stat. § 462.3595; and that revocation was proper based on the record before the City. Because the CUP was no longer in existence, the accessory building could no longer be used M. Despite express concessions by Plaintiff in both the District Court and the Court of Appeals as to the basis of its nonconforming use rights and lack of discovery or litigation of those issues (i.e. Plaintiff had the burden of establishing the claimed rights), the Supreme Court reached the issue of whether pre -CUP nonconforming use 'Copy of Court of Appeals' Decision and Supreme Court Opinion attached. N. A rights remained after a CUP is applied for an accepted. The Court held that absent a clear waiver of the claimed pre-existing nonconforming use rights, the right continues to exist. While not a holding in the case, the Court highlighted Minn. Stat. § 462.357, subd. Ie(b) allowing cities to impose "reasonable regulations" on nonconformities The Court held that the City could require the IUP for the building under the language of the City Code in effect in 2000 and that a new IUP must be issued before the building can be used Practical application of the case: 1. If there is a nonconforming use that converts to a CUP, obtain an express waiver from the property owner and any other interested parties of any claimed nonconforming use rights 2. Because the Court found no waiver, it did not reach the Court of Appeals' determination that a nonconforming CUP can be revoked, and that portion of the case is arguably good law 4 Creating Places that Enrich People's Lives Hoisington Koegler Group Inc. To: Winona City Council, Planning Commission and City Staff From: Mark Koegler and Jeff Miller (HKGi) Date: February 21, 2012 Re: Winorfa Rental Housing Restriction Ordinance—Literature Review & Data Analysis Findings Hoisington Koegler Group Inc. (HKGI) has conducted a literature review relating to rental housing concentration and Its negative impacts on neighborhood quality and livability. This literature review included rental housing's relationship with Increased nuisance complaints, Increased police Incidents, decreased property maintenance levels, decreased homeownership levels, and decreased property values. Although there is a substantial amount of literature that addresses rental housing issues, much of the literature does not contain empirical analysis. Through our literature review, we were able to identify empirical studies of five cities that have faced rental housing Issues that are relevant to Winona. Based upon our findings from the literature review, HKGI then compiled and analyzed detailed data related to Winona's rental housing concentration levels and its relationship to nuisance and police violations. Based on our findings from the literature review and city -level empirical studies that nuisance and police violations are key indicators of neighborhood quality and livability, we focused our data analysis on the relationships between concentrated rental housing and nuisance/pollce violations In Winona. This memo summarizes our literature review and data analysis findings. I. Literature Reviewed 1. Craig Raborn, "Coping With Colleges: How Communities Address the Problems of Students Living Off -Campus," Zoning News (May 2002). 2. Duncan Associates, "Analysis of Issues Regarding Student Housing Near the University of Florida," April 2002. 3. Jack S. Frierson ;'How Are Local Governments Responding to Student Rental Problems in University Towns In the United States, Canada, and England?" Georgia Journal of International and Comparative Law (Winter 2005). 4. John Janmaat, "The Curse of Student Housing: Evidence from Wolfvllle, Nova Scotia," 2010, 5. Ko Wang, Terry V. Grissom, James R. Webb and Lewis Spellman, `The Impact of Rental Properties on the Value of Single-Famlly Residences," Journal of Urban Economics, 1991. 6. Mayors Commission on Housing & Home Ownership, "Promotion of Home Ownership in the City of Binghamton: A Report of the Mayor's Commission on Housing and Home Ownership," 2008. 7. Ngai Pindell, "Home Sweet Home? The Efficacy of Rental Restrictions to Promote Neighborhood Stability," Scholarly Works (Paper 57), 2009. 8. Terance J. Rephann, "Rental Housing and Crime: The Role of Property Ownership and Management," The Annals of Regional Science (43), 2009. 9. Sage Policy Group, "There Is a Rational Basis for Rent Stabilization in College Park, Maryland," April 2005. Page 1 of 10 10. Sage Policy Group, "There Remains a Rational Basis for Rent Stabilization in College Park, Maryland," August 2009. 11. State College Borough Staff, "Sustainable Neighborhoods in State College Borough," June B, 2009. 12. West Urbana Neighborhood Association, "What Other College Communities Have Dane: Examples of Regulatory Actions to Preserve the Single -Family Residential Character of a Campus Neighborhood," January 2005, 13. William M. Rohe and Leslie S. Stewart, "Homeownership and Neighborhood Stability," Housing Policy Debate (Volume 7, Issue 1), 1996. 14. Farley v. Zoning Hearing Board of Lower Merlon Township, 1994. 15. Lantos v. Zoning Hearing Board of Haverford Township, 1993. II. Issues with Concentration/ Density of Rental Housing In Single -Family Neighborhoods Regulating the concentration or density of rental housing In single-family residential neighborhoods is a particular Issue that the City of Winona Is addressing with Its 30% limit of rental housing properties per block. Specifically, the City's low and medium density residential zoning districts allow rental units as a permitted use but limit the number of residentially -zoned lots on any block that can obtain rental housing certification to a maximum of 30%. According to City Planning Commission Meeting Minutes, the Parking Task Force concluded that housing density, property maintenance, off-street parking and deteriorating residential community character were major problems "resulting from the extensive number of homes which have been converted to rental purposes"' in some areas of the community. Based on this finding, the task force proposed to establish a limitation on the number of rental houses that could be concentrated within each black within all residential zoning districts, with the exception of the R-3 zoning district. The literature review supports the City's concerns with an over -concentration of rental houses In single- family residential neighborhoods. Many university towns face the problem of large numbers of single- family houses being converted to rental houses in single-family residential neighborhoods, thereby, creating a high concentration of student rental houses within single-family residential neighborhoods. The literature reviewed supports the argument that over -concentrations of rental houses have negative Impacts on surrounding residential properties and neighborhoods in general, Including noise, Increased traffic, litter, Illegal parking, Inadequate property maintenance, and a general decrease in the quality of life for permanent residents of the neighborhood.2The Impacts typically fall into three primary categories: • Increased nuisance and property maintenance complaints, • Increased City Code violations and police citations, • decreased property values. Thus, the Impacts are physical, economic and social, ultimately contributing to decreases in the quality and livability of neighborhoods. ' City of Winona Planning Commission Meeting Minutes, October 24,2005: 5. ' Jack S. Frierson, "How Are Local Governments Responding to Student Rental Problems In UniversityTowns In the United States, Canada, and England?" Georgialaurnal of International and Comparative taw (Winter 2005):1. Page 2 of 10 In general, the studies found that rental residential properties, particularly, rental single-family houses, are generally maintained at a lower level than owner -occupied houses. Property maintenance issues often include building repairs, yard care, and snow removal. The "Homeownership and Neighborhood Stability" article cites several studies that show "that homeowners are more likely than landlords to undertake repairs and that they spend more on them."' This same article also asserts that owner -occupied housing units are generally maintained at a higher level because homeowners, unlike landlords and renters, possess both an economic and use Interest in their homes. "The Impact of Rental Properties on the Value of Single - Family Residences" article cites several studies that have empirically demonstrated this situation. Inadequate property maintenance issues often result in increased levels of nuisance complaints and City Code violations, as well as decreases In property values of nearby housing. Several studies (Wang, et al; Rohe & Stewart, Janmaat, Pindell) contain empirical analyses that linked higher concentrations of rental houses to decreases in nearby property values. The most direct study of those reviewed relating to Impacts on property values was "rhe Impact of Rental Properties on the Value of Single -Family Residences" study, which concluded that "an inverse relationship exists between the value of a house and the presence of rental properties in the study area.."" This study analyzed data from 23,119 single-family residences and 1,162 single-family sales In San Antonio (TX). Another study found that "after controlling for housing stock characteristics, household characteristics, and MSA -level economic factors, a 5 -percentage -point change [increase] in the homeownership rate of a tract would be associated with about a $4,000 Increase in mean single-family property value over a 10 -year period of time."s A subsequent Impact of decreased property values is the decrease in property tax revenues for the City, County and other taxing jurisdictions. Several studies (Sage Policy Group, Rephann, Duncan Associates, State College Borough) contain empirical analyses that link the concentration of rental houses to increases in nuisance complaints, City Code violations, and crime incidents. Nuisances typically Include yard care (e.g. weed control, grass cutting), snow removal, refuse, Illegal parking, noise, disorderly conduct, liquor and over -occupancy. Section III of this memo describes the empirical analyses linking the concentration of rental houses with nuisance complaints and City Code violations In five cities. Nuisance complaints, code violations and crime incidents are key indicators of a neighborhood's livability and residents' satisfaction with their neighborhood. The literature reviewed Indicates Increased incidences of nuisances, code violations and crimes In renter - occupied houses versus owner -occupied houses. A subsequent impact of Increased complaints, violations and crime Incidents Is the additional costs incurred by a city to observe, address and process them. 3 William M. Rohe and Leslie S. Stewart, "Homeownership and Neighborhood Stability," Housing Policy Debate (Volume 7, Issue 1), 1996:48. Ko Wang, Terry V. Grissom, James R. Webb and Lewis Spellman, "ihe Impact of Rental Properties on the Value of Single -Family Residences," Journal of Urban Economics, Volume 30, Issue 2 (1991): 164. 'William M. Rohe and Leslie S. Stewart, "Homeownership and Neighborhood Stability," Housing Policy Debate (Volume 7, Issue 1), 1996:71-72. Page 3 of 10 Empirical Studies of Rental Housing Impacts on Community Livability in Five Cities Through the literature review, we were able to Identify empirical studies In five cities that show a correlation between the concentration of rental housing and negative impacts on community livability. The five cities are Gainesville (FL), State College (PA), College Park (MD), Cumberland (MD), and Chapel Hill (NC). Speciflcalfy, these five empirical studies identify a link between the concentration of rental housing and Increases In nuisance complaints, code violations and police incidents. Gainesville. FL In 2002, the City of Gainesville conducted an analysis of student housing issues in the neighborhoods around the University of Florida, which were Identified as the study's University of Florida (UF) Context Area. The City's Comprehensive Plan specifically contains a policy calling for such a study in its Future Land Use chapter. Policy 5,1.7 states that 'The City shall prepare a study of the impacts of rentals on single- family neighborhoods and shall Implement additional programs as necessary and appropriate to stabilize and enhance these neighborhoods.i' Based on Census data for the Census tracts that make up the OF Context Area, the study estimated that approximately 75% of the residences In this area are used as rental housing. Using code and noise complaint data from the City's Code Enforcement Division, the study tabulated and compared the number of complaints from the OF Context Area with the overall city. Although the OF Context Area represents 23% of the households In the city, the study found that approximately 51% of the noise complaints came from this area, 46% of the over -occupancy complaints, 50% of the "vision triangle" (obstructed views at Intersection corners) complaints, 43% of the sign violations, and 37% of the minor housing code vlolations 7 State College, PA In 1994 and 2007, the Borough of State College compiled "Violations by Housing Type" reports. The housing types Include apartments, duplexes, fraternities, single-family houses, rental houses, rooming houses and townhouses. This analysis showed that rental single-family houses had the highest average number of nuisance violations per unit, followed by duplexes and fraternities." The top four violations for rental single-family houses were snow, refuse, weeds and noise. The record does not show any evidence that the maximum of three unrelated persons rule, which was enacted In 1979, reduced the number of conversions of owner -occupied single-family houses to student rental houses. In 1997, State College Borough established a minimum spacing ordinance between student rental houses. The record suggests that the minimum distance between student rental single-family homes has resulted In a decrease in conversion of owner -occupied homes to rental homes.' College Park, MD In 2005, the City of College Park conducted a rental housing study that looked at declining homeownership, an increasing trend in conversions of owner-occupled single-family housing being to rental housing, and the 6 Duncan Associates, "Analysis of Issues Regarding Student Housing Near the University of Florida," April 2002: 1. r Ibid: 24. Staff of State College Borough, "Sustainable Neighborhoods in State College Borough," June 8, 2009: 7. 'lbid:8-9, Page 4 of 10 concentration of city Code violations occurring In rental single-family housing. In 2004, the study calculated that the average number of first notice code violations per residential rental unit was 0.78 compared to 0.21 first notice code violations for owner -occupied residential units, which equates to 3.7 times more violations for rental housing"o. In 2008, there were 0.92 violations per rental housing unit compared to 0.38 for owner -occupied housing unit." This study found an increasing trend in conversions of owner-occupled single-family homes to rental housing and a corresponding higher rate of City Code violations In rental single-family housing. in addition to the negative impact on neighborhood quality and livability, this significant higher level of nuisance violations also results In additional costs for the City to process code violations, Including observation, recording, communicating and rectifying them. Cumberland. MD This paper analyzes the links between residential rental properties and crime incidents in the City of Cumberland, MD, which has a population of approximately 21,000 residents. Using police Incident report data forprivately owned rental properties, the type (disturbances, assaults and drug activity) and frequency of crime incidents were analyzed. The study selected these crimes because "they are frequently found In a residential setting and are considered important measures or indicators of neighborhood quality of life."" This study found that Increases in crime were linked to residential rental properties, In particular rental properties where the landlord does not live on-site, properties that are part of larger rental property holdings, properties that use Section 8 vouchers, and properties In neighborhoods with a lower percentage of owner-occupled houses. Chanel Hill, NC Chapel Hill's 2000 Comprehensive Plan "Is organized around twelve major themes, each growing out of the community values that have been identified and which, taken together, form a strategy for Chapel Hill's future."' One of these major themes is to conserve and protect existing neighborhoods. The Comprehensive Plan contains an entire chapter devoted to community character, Including goals, strategies and actions to conserve and protect the character of the community's neighborhoods. "The central purpose of the strategies and actions contained In the Comprehensive Plan Is to manage growth and change so that Chapel Hill will continue to have a special community character and quality of life in the future.i14 One of these strategies is to address the neighborhood Impacts of the conversion of owner -occupied housing to rental housing, including nuisance complaints. The City has identified community indicators that are monitored annually as a means for tracking progress of the implementation of its Comprehensive Plan strategies. For the rental housing strategy, the corresponding community Indicator is the percentage of loud noise complaints that occur In neighborhoods that touch and circle the downtown and central campus, which have been designated Residential Conservation Areas In the City's Land Use Plan. In 2004, 33% of loud noise complaints occurred In these neighborhoods, which have concentrations of residential 30 Sage Policy Group, "There Is a Rational Basis for RentStabillzation In College Park, Maryland," April 2005: 17. "Sage PolicyGraup,'There Remains a Rational Basis for RentStabllization in College Park, Maryland," April 2009:11. "" Terance 1. Rephann, "Renta I Housing and Crime: The Role of Property Ownership and Management," The Annals of Regional Science (43), 2009:2. "' Town of Chapel Hill (NC), "Planning for Chapel Hill's Future: The Comprehensive Plan," May 8, 2000:1. "' Ibld:11. Page 5 of 10 rental housing.35 Since these neighborhoods represent approximately 20% of the total housing units within Chapel Hill, they are responsible for a disproportionate share of the loud noise complaints in the community. The City of Chapel Hill clearly links and monitors rental housing nuisance Incidents with neighborhood character and quality of life. IV. Minnesota Examples of Cities with Rental Housing Concentration Regulations At the state level, In addition to Wlnona's rental housing concentration ordinance, we are aware of three other Minnesota cities that have established ordinances to address the Issue of concentrated rental housing— Northfield, Mankato and West St. Paul. While Winona's ordinance established a maximum of 30% rental housing properties per residential block, the other titles' maximums are all lower including 25%, 20% and 10%. These three ordinances were all established after Winona's ordinance was In place — Northfield (2007), Mankato (2008) and West St. Paul (2012). • Northfield, MN: Located in Businesses Ordinance (not Zoning Ordinance), Rental Housing (Chapter 14, Article III). Limits the percentage of houses on a single block that can be granted rental housing licenses to 20% in low density neighborhoods (R-1 and R-2 zoning districts). • Mankato, MN: Located in Business Regulations & Licensing Ordinance (not Zoning Ordinance), Dwelling Unit Rental (Section 5.42, Subdivision20), Limits the number of lots on any block that are eligible to obtain a rental license or to be licensed as a rental property to 25%. • West St. Paul, MN: Located In Building, Housing & Construction Regulations Ordinance (not Zoning Ordinance), Rental Dwellings (Section 435). Limits single-family rental properties to 10% per block In an RI zoning district. is Town of Chapel Hill (NC), "2004 Chapel Hill Data Book," July 2004: S-8. Page 6 of 10 V. Analysis of Winona Nuisance and Police Violations Data In order to compare Winona's rental housing situation with the findings from other cities' empirical studies related to rental housing concentration Issues, which are described In Section III, an analysis was conducted of Winona's nuisance and police violations data. Since the Cites "30% Rule" zoning ordinance was adopted at the end of 2005, this data analysis covers the time period of 2006-2011 for nuisance complaints. Police citation data was analyzed for the 2009-2010 time period. The Intent of this analysis is to calculate and compare violations data for rental housing vs. owner -occupied housing within non -multifamily residential areas, as well as concentrated rental residential blocks (blocks currently over the 30% maximum) vs. all other residential blacks. This analysis of nuisance and police violations was limited to properties within the City's residential zoning districts, except for R-3, since the "30% Rule" Is only applicable to these zoning districts. Properties in the following zoning districts are exempt from the "30% Rule B-1, B-2, B-3, R-3, M-1, and M-2, Within the applicable residential zoning districts, there are currently 7,383 properties. Some of these residential properties have not been developed with a residential building yet, therefore, the more relevant total residential properties number that we used is 6,557 developed residential properties, not Including R-3 properties. In 2011, 1,161 properties had rental housing certification, which means rental housing certified properties represented 17.7% of the non -multifamily residential properties within Winona. In 2011, there were a significant numberof blocks that exceeded the maximum level of 30% rental housing. These blocks contain 1,528 residential properties, including both rental and owner -occupied housing, and represent 23.3% of the non -multifamily residential properties within Winona. 676 of the 1,528 properties on the "over 30%" blacks had rental housing certification, which translates to an average of 44.2% rental housing properties on the "over 30%" blocks. Although many blocks exceed the maximum level of 30% rental housing, many blocks do not. Within the city's area of traditional square blocks, approximately 700 additional rental housing certifications are permitted on blocks that currently have less than 30% rental housing. Within the entire city, approximately 1,400 additional rental housing certifications could be permitted. In other words, less than half of the possible rental housing certifications are currently being used since 1,171 rental housing certifications currently exist compared to the possibility of an additional 1,400 that could be permitted. The first type of analysis looks at nuisance complaints for the time period of 2006-2011 for all properties within residential zoning districts, except R-3. The types of nuisance complaints included the following: uncontrolled weeds, grass/lawn maintenance, garbage, junk, vehicles, vehicles parked In yard, furniture in yard, snow/ice, no building permit, building deterioration, fence deterioration, and other. Table 1 below summarizes total number of residential property complaints, number & percentage of rental property complaints, and number & percentage of non -rental property complaints. The major finding is that rental housing properties, which represent just 17.7% of all non -multifamily residential properties within Winona, were responsible for 51% of the residential nuisance complaints from 2006-2011. Page 7 of 10 Table 1: Nuisance Complaints— Rental Residential Properties vs. Non -Rental Properties (2006-2011) Year Total Number of Residential Property Complaints Number of Rental Property Complaints %Associated w/ Rental Properties Numberof Non -Rental Property Complaints %Associated w/ Non -Rental Properties 2011 345 133 39% 212 61% 2010 414 194 47% 220 53% 2009 492 249 51% 243 49% 2008 413 232 56% 181 44% 2007 416 255 61% 161 39% 2006 236 108 46% 128 54% 2006-2011 2,316 1,171 51% 1,145 49% (Vote: Rental housing properties represent 17.7% of all non-mutty'amily residential properties In win on a, not including residential properties in the following exempted zoning districts—B-1, B-2, B-3, R-3, M-1 and M-2. The second type of analysis looks at nuisance complaints for the time period of 2006-2011 comparing blacks with over 30% rental housing to blocks with less than 30% rental housing. Table 2 below summarizes total number of residential property complaints, number & percentage of complaints associated with blocks having over 30% rental housing, and number & percentage of complaints associated with blocks having less than 30% rental housing. The major finding Is that blocks with over 30% rental housing, which represent just 23.3% of all non -multifamily residential properties within Winona, were responsible for 47% of the residential nuisance complaints from 2006.2011. Table 2: Nuisance Complaints— Concentrated Rental Blocks vs. Other Residential Blocks (2006.2011) Year Total Numberof Residential Property complaints F Numberof Complaints In Blocks OVER 30% Rental Housing %Assoclated w/ Blocks OVER 3096Rental Housing Number of Complaints In Blacks LESS THAN30% Rental Housin_a %Associated w/ Blocks LESS THAN 3036 Rental Housing 2011 345 131 38% 214 62% 2010 414 187 45% 227 55% 2009 492 233 47% 259 53% 2008 413 203 49% 210 51% 2007 416 228 55% 18g 45% 2006 236 102 43% 134 57% 2006-2011 2,316 1,084 47% 1,232 53% ivore: piocxs wlm over 3u% rentoi nousing represent 23.396 of oil non-multifamBy residentlol properties in Winona, not including residential properties in the following exempted zoning districts —B-1, B-2, B-3, R-3, M-1 and M-2. Page 8 of 10 The third type of analysis delves deeper into nuisance complaints for the time period of 2006-2011 to compare rental/non-rental properties on "over 30% rental blocks" with rental/non-rental properties on "less than 30% rental blocks". Table 3 below summarizes this data. The analysis In the upper half of Table 3 shows that rental housing properties on concentrated rental blocks had an average number of nuisance complaints per property of 1.16 vs. 0.80 for rental housing properties on non -concentrated rental blocks. This difference translates to a 45% higher rate of nuisance complaints for rental housing properties that are located on concentrated rental blocks. Another way to look at it is that rental housing properties located on concentrated rental blocks, which represent 10% of all residential properties, are responsible for 34% of residential nuisance complaints. Furthermore, the analysis in the lower half of Table 3 shows that non - rental housing properties on concentrated rental blocks had an average number of nuisance complaints per property of 0.35 vs. 0.19 for non -rental housing properties on non -concentrated rental blocks. Thus, the concentration of rental housing creates a spillover effect on non -rental housing to Increase Its rate of average nuisance complaints per property more than 80%. Table 3: Nuisance Complaints --Rental/Non-Rental Properties & Concentrated Rental Blocks (2006-2011) Type ofProperties Total Number of Average %of Total 96 of Number of Nuisance Number of Residential Nuisance Properties Complaints Nuisance Properties Complaints 2006-2011 Complaints per Property Rental Housing Properties 676 783 1.16 10% 34% on Over 30% Rental Blocks Rental Housing Properties 485 388 0.80 8% 17% on Less Than 30% Rental Blocks say k. itl' <•--fillfirs L'E-: Non Rental Housing 852 301 0.35 13% 13% Properties on Over 30% Rental Blocks Non -Rental Housing 4,544 844 (mg 69% 36% Properties on Less Than 30% Rental Blocks _ Total 6,557 2,316 0.35 100% 100% The fourth type of analysis looks at police citations for the 2009-2010 time period. The types of police citations analyzed included primarily loud party, minor consumption, social host ordinance, public urination, criminal damage to property, and theft/burglary. Table 4 below compares the number of police citations associated with rental/non-rental properties on "over 30% rental blocks" with rental/non-rental properties on "less than 30% rental blocks". The analysis In the upper half of Table 4 shows that rental housing properties on concentrated rental blocks had an average number of police citations per property of 0.0533 vs. 0.0206 for rental housing properties on non -concentrated rental blocks. This difference translates to a 160% higher rate of police citations for rental housing properties that are located on concentrated rental blocks. Another way to look at it is that rental housing properties located on Page 9 of 10 concentrated rental blocks, which represent 10% of all residential properties, are responsible for 55% of residential nuisance complaints. Table 4: Police Citations —Comparison of Rental Properties & Blocks (2009-2010) 7ypeof—Properties Total Number of Average %of Total %of Police Number of Police Number of Residential Citations Properties Citations Police Properties 2009.2010 Citations per Property Rental Properties on 676 36 0.0533 l0% 55% Over 30% Rental Blocks Rental Properties on 495 10 0.0206 B% 15% Less Than 30% Rental Blocks 211111=1111111H. = Non -Rental Properties 852 3 0.0035 13% 4% on Over 3096 Rental Blocks Non -Rental Properties 4,544 17 0.0037 69% 26% on Less Than 30% Rental Blocks Total 6,557 66 .0100 100% 100% Note: The police citations data for 1009-1010 above does not include nine (9) of the citations because no address was Indicated on these citations for the actual location of the crime incident. VI. Conclusion Our literature review of rental housing concentration and its effects, including the empirical studies of five cities, supports the conclusion that the concentration of rental housing results In negative impacts to the quality and livability of residential neighborhoods. In addition, our compilation and analysis of the relationship between Winona's rental housing concentration and nuisance complalnts/police violations data parallels the findings of the literature review. In particular, we find that concentrated rental housing In Winona has resulted In a much higher rate of nuisance complaints and police violations in concentrated rental housing blocks, Impacting both rental and non -rental residential properties. Thus, based upon the literature review, Including the empirical studies of five cities relevant to Winona's rental housing Issues, and the detailed analysis of Winona data, we conclude that the concentration of rental housing In Winona results In Increased levels of nuisance and police violations In those neighborhoods. As these violations are Indicators of increased nuisances and decreased property maintenance levels that negatively affect neighborhood quality and livability, we also conclude that the concentration of rental housing leads to decreased neighborhood quality and livability. Page 10 of 10 FH.ED � STATE OF MINNESOTA GI T€1 -6 -1 -bo -8 �Unr DISTRICT COURT PoNOMA, MN 55987 COUNTY OF WINONA THIRD JUDICIAL DISTRICT Court File No.: 85 -CV -11-2329 Ethan Dean, Holly Richard, Ted Dzierzbicki, and Lauren Dzierzbicld, VS. City of Winona, a municipality, Plaintiffs, Defendant. SUMMARY JUDGMENT ORDER AND JUDGMENT This case was heard by District Judge Jeffrey D. Thompson on January 23, 2013, on cross motions for summary judgment. Plaintiffs (hereafter "Homeowners' were represented by Anthony B. Sanders and Katelynn K. McBride, 527 Marquette Ave., Ste. 1600, Minneapolis, MN 55402. Defendant (hereafter "the City") was represented by George C. Hoff, 160 Flagship Corporate Center, 775 Prairie Center Dr, Eden Prairie, MN 55344. All parties assert that there are no genuine issues of material fact and that this matter is appropriately decided as a matter of law. The Court allowed the City additional time to respond to Homeowners' affidavits and took this matter under advisement on January 31, 2013. Upon the pleadings, affidavits, exhibits, and filed discovery, the Court having considered the arguments of counsel and being otherwise fully advised in the premises, fording no genuine issues of material fact, It Is Ordered That: The City's motion to strike the Second Affidavit of David Phillips is DENIED. 2. Homeowners' motion for summary judgment is DENIED. 3. The City's motion for summary judgment is GRANTED. 4. The following Memorandum is herein incorporated by reference. LET JUDGMENT BE ENTERED ACCORDINGLY DATED: BY THE COURT: pso jg&T'r"midgen st ct utJ JUDGMENT I hereby certify that the foregoing Order constitutes the Judgment of the Court. DATED:. _ Al2A 1_-7, ,YY6 QZLUa---�L ) Statement of Undisputed Facts SALLY A. CUMISKEY COURT ADMINISTRATOR 4-411 tyC eru. MEMORANDUM Winona City Rental Property Code § 33A.03(i) provides in relevant part: "In R -R, R -S, R-1, R-1.5 and R-2 districts of the city, no more than 30 percent (rounded up) of the lots on any block shall be eligible to obtain certification as a rental property, including homes in which roomers and/or boarders are taken in by a resident family." There is an exemption for grandfathered -in lots and for certain zoning districts. There is also a temporary rental license available to a homeowner who is actively trying to sell his or her house for one year. This rule ("the 30% Rule") was adopted in 2005 in Chapter 43 of the city code, which deals with zoning. The 30% Rule was moved to the "Housing Rental Property" chapter in 2012, after this matter had commenced. There were some changes to the wording of the rule, but none relevant to this dispute, History of the 30% Rule In 2003, the Winona City Council requested that the Planning Commission consider the effectiveness of the City's off-street parking regulations, particularly regarding rental properties and most significantly around the Winona State University ("WSU") campus. Members of the Commission noted that the number of residential properties being converted from single-family to rental usage was increasing and that the parking demands for owner -occupied dwelling units is often different than rental dwellings. Suggested solutions to this growing problem included changing the definition of "family" as it pertains to single-family occupancy and limiting the number of rental properties per block in residential areas. In December of 2004, the City Council adopted a resolution that put a moratorium on the certification of "new" rental housing units for a six-month period. During the moratorium, the Planning Commission initiated discussions and developed a tentative list of proposed code modifications pertaining to rental housing density and off-street parking issues. The Commission then held a series of public input meetings with rental landlords, homeowners, and others. In April of 2005, Mayor Jerry Miller, in conjunction with the Commission discussions, initiated a series of town meetings designed to deal with "density, parking, and aesthetic issues within the `area' of the university." The meetings were attended by landlords, homeowners, students, and others. Following the last meeting, in late May of 2005, the Mayor created a core study group to identify issues and possible solutions pertaining to university neighborhoods to forward to the Commission. The moratorium was extended another 6 months until December of 2005 to allow the study group and the Commission to complete their review, planning, and implementation. A Parking Advisory Task Force was also formed in 2005 to consider these same issues and consider the Planning Commission's proposals. The Task Force noted that 39% of the City's dwelling units were rental, but 52% of the complaints received by the Community Development Department relate to rental occupancies. Due to this, it was suggested that the number of rentals in the City be restricted, perhaps on a "per block" basis. Concerning the Commission's proposals, the Task Force agreed that the definition of "family" should be modified so that only 3 unrelated persons can live in a single dwelling unit; it agreed that the number of roomers a resident family can keep be reduced from 4 to 2; and the Task Force agreed that the number of required off-street parking spaces per dwelling unit be increased from 1.5 to 2. In August of 2005, the Task Force began discussing the idea of restricting the number of rental units per block. Because rental housing units comprised approximately 39% of the total housing units in the City at the time, it was suggested that the number of rental units be restricted to 30% of the total properties on any given block. At the August 2005 Task Force meeting, Committee Member Don Leaf emphasized that the ratio of rental properties to total properties represents community "character" and that such a restriction could protect inner city neighborhoods from heavy concentration of rental housing. After some debate, the Task Force adopted a motion to forward the 30% Rule to the Planning Commission for consideration, though it was discussed again at the September 1, 2005 meetings. There it was noted that the 30% Rule could prevent out-of-town people from purchasing residential property within the City and that it could hinder current residents' ability to sell their property. These issues were noted and acknowledged, and the Task Force decided that it was in favor of the 30% Rule and would seek studies and findings on the effect of rental housing on the area. On October 1, 2005, the Planning Comndssion discussed the 30% Rule. The Commission noted that the Parking Task Force believes that landlords and students often do not have any interest in how their properties appear and the effect they have on the community. Therefore, the Task Force believes that neighborhoods heavily populated with student rentals tend to become run-down and unattractive and a 30% per -block restriction on rental housing is appropriate. Some city staff were concerned that the rule might not be legal, but the City Attorney indicated that if the City Council finds that such a restriction will promote the public health, safety, morals and general welfare of the City's residents, it would be legal. It was also noted that some exceptions should be allowed for, such as a professor leaving the area for a year or two, for which a one-year exception or "special case clause" could be established. In an October 24, 2005 meeting, the Planning Commission noted that according to County data, in 2004, the Department of Community Development found that of the 99 addresses that had two or more calls for service that police responded to for noise and party complaints, 95 were rental units. The Commission also noted that 52% of the zoning violations that resulted in written violations during 2004 were for rental units while 39% of the City's housing units are rental. After further discussion, a public hearing was scheduled for November 14, 2005 on the issue. At the public hearing, the Commission voted 6 to 3 to recommend the 30% Rule to the City Council. The City Council held a public meeting on November 21, 2005. A the meeting, the City Council discussed and adopted some of the other recommendations of the Task Force and the Planning Commission, as well as opening a public hearing on the 30% Rule. Several members of the community spoke for and against the proposed rule. Most of the negative comments revolved around concerns that property values would suffer; most of the positive comments revolved around protecting neighborhoods and preventing areas from becoming completely dominated by rental units. The 30% Rule was passed at the November 21, 2005 meeting and adopted on December 5, 2005. The 30% Rule was again raised at a February 23, 2009 Planning Commission meeting. The City Planner noted that since the rule was enacted, 142 dwelling units had been certified for rental and that they were dispersed throughout the City rather than concentrated. There was some disagreement among the Commission members as to whether the Rule was "working." The City Planner also noted that the City Council was in the process of creating a new task force to examine the 30% Rule. This task force was created by the City Council in March of 2009 with the goal of focusing on potential ways for residents to rent their homes on blocks over 30% in extraordinary circumstances and potential ways to encourage the conversion of rental properties into owner occupied structures. The task force conducted a study of a particular area around the WSU campus and determined that 48% of the 775 dwelling units were certified as rental and that if the 30% Rule was lifted, that number would increase to 67%. Ultimately, in February of 2010, the task force recommended that the City retain the 30% Rule. It was noted that "[a]lthough the general consensus of the Task Force was that the Rule has, since adoption, had the intended affect [sic] of dispersing rental patterns away from core university neighborhoods, not all were supportive of the method." The Program Development Director for the Department of Community Development characterized the 30% Rule as having "preserved affordable housing and reduced conversions as intended" In February of 2012, a few months after Plaintiffs filed their complaint in this matter, the Planning Commission met to discuss moving the 30% Rule from Chapter 43 to Chapter 33A, The stated purpose of moving the Rule is that "other cities have included similar provisions in their housing codes ---not in their zoning codes" and "the move is also recommended because the City's charter grants additional legal authority for ordinances such as the 30% rule." A memorandum was also prepared by the consulting firm Hoisington Koegler Group, Inc. ("HKG") in conjunction with this issue. In general, the memorandum supported the idea that there is a correlation between rental properties, particularly rentals to single family dwellings, and increased behaviors that lead to a decline in neighborhood livability. Specific to Winona, the HKG memorandum stated: We conclude that the concentration of rental housing in Winona results in increased levels of nuisance and police violations in those neighborhoods. As these violations are indicators of increased nuisance and decreased property maintenance levels that negatively affect neighborhood quality and livability, we also conclude that the concentration of rental housing leads to a decreased neighborhood quality and livability. The 30% Rule was moved to Chapter 33A, where it is currently placed, in March of 2012. Homeowners' Situations Homeowners Dean and Richard each own a residential property in the City of Winona and the Dzierzbickis, a married couple, jointly own a residential property. Dean purchased a house near WSU in 2006 with the intention of residing there with his girlfriend and her family. By 2009, however, that relationship had ended and Dean was preparing for another tour in Iraq with the US Department of Justice. Because the market at the time made selling the house undesirable, Dean hoped to rent it out, but the 30% Rule prevented him from obtaining a rental license. Dean has been able to obtain temporary rental licenses and has been renting the home since 2010, but asserts that attempts to sell the properly are often hindered when the potential buyer learns that a long-term rental license is not available. Dean's property also does not comply with the City's off-street parking requirements, but he has been allowed to provide a second parking space by leasing an adjacent space while attempting to sell the house. Ted and Lauren Dzierbicki live in Illinois. They purchased a house near W SU in 2007, when their daughter was attending school, and made significant improvements to the property. They planned to have their daughter live in the house and rent it out to other students. The house, however, is on a block in which more than 30% of the houses have rental licenses, so this plan could not come to fruition. Their daughter lived there until she graduated in May of 2010. Other students lived in the house paying only utilities and not rent until the fall of 2010, when the City determined that arrangement was also a violation. The house has been empty since May of 2010 and on the market since December of 2009. The Dzierbickis assert that the value of the property is significantly lower than it would be if a rental license were possible. Richard purchased a house in December of 2006 while she was working at St. Mary's University in Winona. In 2009, she accepted an offer from the University of South Dakota to pursue a Ph.D. and put her house tip for sale. After receiving no offers, she decided to rent. When Richard inquired about getting a rental license, she was informed that she was on a block in which more than 30% of the properties had a rental license, so her house was ineligible. She entered rent -with -option -to -buy with a potential purchaser, but in February of 2010, the City discovered this arrangement and ordered the renter out. Richard obtained a temporary license in April of 2010 and has had it renewed. The house went unrented for March and April. She also believes the inability to obtain a long -tern rental license hindered her attempts to sell. After this lawsuit was filed, however, Richard discovered that another rental license on her block had lapsed and that she was eligible for a standard rental license. She obtained a license and has been renting her home since. Legal Analysis and Conclusion . IIere, both parties have moved for summary judgment. Summary judgment is appropriate where the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that either party is entitled to judgment as a matter of law. Minn. R. Civ. P. 56.03; Offerdahl v. Univ, of Minn. Hasps. & Clinics, 426 N.W.2d 425, 427 (Minn. 1988). The evidence must be viewed in the light most favorable to the nonmoving party. Fabio v. Dellomo, 504 N.W.2d 758, 761 (Minn. 1993). "A moving party is entitled to summary judgment when there are no facts in the record giving rise to a genuine issue for trial as to the existence of an essential element of the nonmoving party's case." Nicollet Restoration, Inc. v. City of St. Paul, 533 N.W.2d 845, 847 (Minn. 1995). Standing The City argues that Homeowners Dean and Richard's claims should be dismissed for lack standing. "Standing is the requirement that a party has a sufficient stake in a justiciable controversy to seek relief from a court." State by Humphrey v. Philip Morris Inc., 551 N.W.2d 490, 493 (Mimi. 1996) (citing Sierra Club v. Morton, 405 U.S. 727, 731-32 (1972)). A plaintiff has standing if the plaintiff has suffered some "injury -in -fact." Id The City argues that Dean lacks standing because his property does not have a second off-street parking space, thus, even without the 30% Rule, he would still be ineligible for a standard rental license. This argument fails. Dean may, as he has been doing while obtaining temporary rental licenses, lease an off-street parking space from someone else. Dean or a subsequent purchaser of his property could make a permanent or long-term arrangement for a J second space or possibly add another space to the property. Thus, there remains an issue of fact as to whether the 30% Rule has negatively affected the value of Dean's property and/or prevented him from selling it. The City argues that Richard lacks standing because she was ultimately able to get a standard rental license when her block dropped below 30%, making her claims moot, This argument also fails. There is evidence that the 30% Rule caused Richard to lose at least two months of rental income. If Homeowners prevail and the 30% Rule is deemed unlawful, Richard will have a valid claim to at least the nominal damages requested in her prayer for relief. The Homeowners have standing in this matter. In the interests of simplicity, the Court will refer to "Homeowners" hereafter as though they are each ineligible to obtain a standard rental license because of the 30% Rule. Equal Protection and Substantive Due Process "We presume statutes to be constitutional and exercise the power to declare a statute unconstitutional with extreme caution and only when absolutely necessary." ILHC of Eagan, LLC v. County of Dakota, 693 N.W.2d 412, 421 (Minn. 2005) (internal quotation marks omitted). The party challenging an ordinance or statute's constitutionality bears the burden of establishing that the statute is unconstitutional beyond a reasonable doubt. Greene v. Comm'r of Minnesota Dept. of Human Services, 755 N.W.2d 713, 724-25 (Minn. 2008) (citing Gluba ex rel. Gluba v. Bitzan & Ohren Masonry, 735 N.W.2d 713, 719 (Minn. 2007)). The Fourteenth Amendment to the United States Constitution guarantees that no state will "deny to any person within its jurisdiction the equal protection of the laws." U.S. Const. amend. XIV, § 1. The Minnesota Constitution also guarantees that "[njo member of this state shall be disenfranchised or deprived of any of the rights or privileges secured to any citizen thereof, unless by the law of 10 the land or the judgment of his peers." Minn, Const. art, 1, § 2. Minnesota courts have observed that "[b]oth clauses have been analyzed under the same principles and begin with the mandate that all similarly situated individuals shall be treated alike, but only invidious discrimination is deemed constitutionally offensive." Kotton v. County of Anoka, 645 N.W.2d 403, 411 (Minn. 2002) (internal quotation marks omitted). Courts apply strict scrutiny to a legislatively -created classification that involves a suspect classification or a fundamental right. Greene, 755 N.W.2d at 725 (citing Bituminous Cas. Corp. v. Swanson, 341 N.W.2d. 285,289 (Minn.1983)). If strict scrutiny applies, the classification must be "narrowly tailored and reasonably necessary to further a compelling governmental interest." Hennepin County v. Perry, 561 N.W.2d 889, 897 n. 7 (Minn. 1997). If a constitutional challenge does not involve either a suspect classification or a fundamental right, courts are to review the challenge using a rational -basis standard. Gluba, 735 N.W.2d at 719. The parties agree that a rational -basis standard is appropriate in this case. Under the federal constitution, the same rational -basis standard of review applies to due process and equal protection challenges to a statute or ordinance: The examining court must merely inquire whether (1) the act serves to promote a public purpose, (2) it is an unreasonable, arbitrary or capricious interference with a private interest, and (3) the means chosen bear a rational relation to the public purpose sought to be served. Grussing v. Kvam Implement Co., 478 N.W.2d 200, 202 (Minn. App. 199I). In applying that test, a court need not agree with the legislative body's determination, rather "those challenging the legislative judgment must convince the court that the legislative facts on which the classification is apparently based could not reasonably be conceived to be true by the governmental decision -maker" and "they cannot prevail so long as it is evident from all the considerations presented to [the legislative body], and those of which we may take judicial 11 notice, that the question is at least debatable," Id. (citing Minnesota v. Clover Leaf Creamery Co., 449 U.S. 456,464 (1981)). Minnesota courts, however, apply a less deferential rational -basis review for challenges to a statute or ordinance under the Minnesota Constitution's equal protection clause. The Minnesota rational -basis test provides: (1) The distinctions which separate those included within the classification from those excluded must not be manifestly arbitrary or fanciful but must be genuine and substantial, thereby providing a natural and reasonable basis to justify legislation adapted to peculiar conditions and needs; (2) the classification must be genuine or relevant to the purpose of the law; that is there must be an evident connection between the distinctive needs peculiar to the class and the prescribed remedy; and (3) the purpose of the statute must be one that the state can legitimately attempt to achieve. Studor, Ina v. State, 781 N.W.2d 403, 408 (Minn. App. 2010), review denied (Minn. July 20, 2010). "The distinction between the two tests is that under the Minnesota test we have been unwilling to hypothesize a rational basis to justify a classification, as the more deferential federal standard requires ... Instead, there must be a reasonable connection between the actual, as opposed to the theoretical, effect of the classification and the statutory goals." Id. Thus, to determine if the 30% Rule violates the federal or state equal protection or substantive due process clauses, the Court need only analyze Plaintiffs' claim under the Minnesota equal protection standard. If the 30% Rule does not pass the Minnesota rational -basis test, it is unlawful and the Court need go no further; if it does pass the less deferential Minnesota rational - basis test, it also passes the rational -basis test used to analyze federal equal protection claims, as well as state and federal substantive due process claims. See Id. at 410 (" V]f legislation does not violate equal protection, it does not violate substantive due process.") (quoting Everything Etched; Inc. v. Shakopee Towing, Inc., 634 N.W.2d 450, 453 (Minn. App.2001), review denied (Minn. Dec. 11, 2001)). 12 Before getting to the rational -basis test, "the threshold question is whether the claimant is treated differently from others who are similarly situated, because the equal protection clause does not require the state to treat differently situated people the same." Odunlade V. City of Minneapolis, 823 N.W.2d 638, 647 (Minn. 2012). The "Equal Protection Clause does not forbid classifications, it simply keeps governmental decision -makers from treating differently persons who are in all relevant aspects alike." State Y. Johnson, 813 N. W.2d 1, 12 (Minn. 2012) (quoting Nordlinger v. Hahn, 505 U.S. 1, 10 (1992)). On its face, the 30% Rule treats all of those to whom it applies --private, residential property owners in low density residential zones—equally. Homeowners argue that they are similarly situated to all residential property owners in low density residential zones, but are treated differently because some can get rental licenses (or have licenses and may add another renter) and they cannot. The City argues that owners on blocks with less than 30% rental are not similarly situated to those on blocks over 30% as it pertains to a rental -density regulation. Homeowners counter that the City's argument that people are not similarly situated because they are separated by the distinction created by the challenged legislation begs the question. Homeowners slightly mischaracterize this argument. By creating the 30% Rule, the City set the line of demarcation at 30%, but the difference in the composition of city blocks exist with or without a legislatively defined trait. As noted above, the City is allowed to classify, but it may not treat "differently persons who are in ail relevant aspects alike." The relative number of rental licenses on a property's block is relevant to whether or not that property should be issued a rental license. Thus, someone on a block with less than 30% rental and someone on a block with more than 30% rental are not alike in that relevant aspect. Fellow property owners on over 30% blocks that have rental licenses are similarly situated except that they were either grandfathered 13 in by having a rental license before 2005 or got a rental license before their block got up to 30%. In each case, that property owner obtained a rental license before the Rule was enacted or while his or her block had less than 30% rental. Those property owners are also not similarly situated. Moreover, Homeowners cannot meet their burden of showing that the 30% Rule fails the Minnesota tational-basis test. ' Homeowners do not contest that the purposes of the Rule are legitimate; they argue it cannot meet the first two requirements of the Minnesota rational -basis test. The distinctions are genuine and substantial. The City's purposes in enacting the 30% Rule include avoiding further concentration of rental properties and conversions from owner - occupied homes into rental properties. The goals are to serve the ultimate purpose of preserving the "character" of neighborhoods, maintaining affordable single-family housing, limiting deterioration of housing conditions, reducing on -street parking, and maintaining neighborhood "livability," which includes minimizing nuisance complaints and anti -social behavior. Limiting the number of rental licenses per block is not an arbitrary or fanciful means of achieving these goals. Homeowners argue the "first-come, first -serve" nature of the Rule renders it inherently arbitrary, but that is just a symptom of genuine and substantial distinctions. There is a genuine distinction between someone on a block with over 30% rental and someone on a block with below 30% rental. When the person on the block below 30% applies for and receives a license, it could push that block to over 30%. This change in block composition may prevent an otherwise qualified renter from obtaining a license, but it is not arbitrary that the "fust -comer" got the license. That person applied for a rental license on a block with less than 30% rental, so issuing that license conforms with the City's purpose of dispersing rentals to blocks at less than 30%. Regarding the actual number settled upon, which Homeowners 14 acknowledge is not a basis for their challenge, "numbers chosen as legal limitations are often arbitrary: e.g., speed limits, building ordinances, statutes of limitation ... [t]he necessity of selecting some number arbitrarily does not render an ordinance itself arbitrary." Holt v. City of Sauk Rapids, 559 N.W.2d 444,446 (Mimr. App. 1997). The classification is also genuine and relevant to the purposes of the Rule. There is evidence to suggest that the 30% Rule has dispersed rentals throughout the City and there is no real question that it has slowed the conversion of owner -occupied homes to rentals; Homeowners inability to convert their single-family homes to rental housing caused them to bring this lawsuit. It is reasonable for the City to conclude that the 30% Rule will ultimately have a positive effect on the character and livability of neighborhoods, particularly those around the WSU campus, Homeowners offer alternative suggestions toward livability and anti -social behavior and assert that the Rule is overbroad in some respects while under -inclusive in others. They note that allowing already -licensed propeities to add rental units can increase population density and burden on -street parking as much as licensing another property for rental; they argue that when more rigorously analyzed, the crime statistics in higher rental areas are not significantly different; and they argue that nuisance complaints, anti -social behavior, and housing deterioration could be more directly addressed by more strict enforcement of law, rules, and codes related to those specific issues. These may be legitimate critiques of the City Council's thought process and may weaken some of the Council's conclusions in adopting the 30% Rule, but .they do not meet Homeowners substantial burden of establishing that the 30% Rule's classification is not genuine or relevant to the purpose of the Rule. Even if the Rule does not go as far as Homeowners suggest it could to reduce population density and on -street parking, it does curb rental -property density by preventing entire properties, such as those of the Homeowners, 15 from becoming full-time rentals. While there may be other ways to accomplish these goals, the City can articulate genuine reasons for maintaining a percentage of owner -occupied homes (or year-to-year rentals that are actively being sold) in an area can be expected to better discourage deterioration and preserve the character of the neighborhood. Homeowners may have created a fact issue on whether the 30% Rule is narrowly tailored to a compelling governmental interest, but that is not the applicable standard here. Homeowners have not met their burden•of showing that the 30% Rule is in violation of the Minnesota constitution's equal protection clause, nor have they raised a genuine issue of fact on that question. Consequently, Homeowners also cannot show that the 30% Rule violates the federal equal protection clause or the state and federal substantive due process clauses. Equal Protection—As Applied Homeowners' equal protection claims, as applied to them, are not substantially different than their facial equal protection claims addressed above. Essentially, Homeowners cannot get a rental license (or were delayed in getting it), but some lots on the same block with a rental license may expand to add additional rental units and lots on adjacent blocks that have less than 30% rental, sometimes just across a street, may obtain a rental license. As noted above, Homeowners are not similarly situated to property owners who already have a rental. license or owners of properties on blocks with less than 30% rental. Even if they are considered similarly situated for these purposes, Homeowners cannot show that the 30% Rule lacks a rational basis for treating them differently for the same reasons articulated above. Procedural Due Process Homeowners argue that their state and federal procedural due process rights are infringed upon by the 30% Rule because it unconstitutionally delegates legislative authority to the other 16 property owners on their blocks. The argument is that fellow property owners have the power to prevent Homeowners from being able to rent by obtaining their own license, whether or not they intend to rent. Thus, the argument goes, the 30% of property owners that have obtained a standard rental license are given the authority to decide if any of the non -licensed properties on the block have any possibility of getting a rental license. This argument relies on somewhat strained logic. The City has determined that to promote the public welfare, rental licenses should be a limited per block. As noted above, this is a reasonable determination. Because rental licenses are limited per block, as with anything limited to a finite amount, some people will necessarily have a rental license and others will not. It is a leap to view those who have obtained or retained licenses as operating in a legislative capacity simply by keeping their licenses. The incongruity of this view can be seen by the fact that on a block at or near 30°/q it would only take one "vote" to allow a new renter, and the "voter," who votes by not renewing his or her license, has no input on which property may get the available license. This process is not analogous to 30% of the block being able to vote on how a neighbor uses his or her property, as Homeowners claim. Regardless, even if one does view the 30% limit as providing that the rental license holders on a block must "consent" to a new rental license, Homeowners' claim fails. Homeowners rely heavily on State ex rel. Foster v. City of Minneapolis, 97 N. W.2d 273 (1959). There, the court held that a statute with a "consent" provision allowing a city to rezone property only after written consent of owners of two-thirds of the property within 100 feet of the property was invalid in the case where a property owner's right to use his property for commercial purposes was taken away upon application of his neighbors to rezone it to residential. If one were to view the 30% Rule as a "consent provision," it is more analogous to the one upheld in 17 Leighton v. City of Minneapolis, 16 F. Supp. 101 (17. Minn. 1936) and distinguished by the Foster court. There, the plaintiff was prevented from having her property rezoned from "multiple dwelling" to 'commercial" because she could not obtain the required written consent of two-thirds of those within 100 feet of the property. The Leighton court noted that the property would likely double in value if it were zoned commercial, but that the statute did not violate the plaintiff's substantive due process rights. Id. at 102, 106. The court distinguished the facts in Leighton from violations of the due process clause in which similar statutes and ordinances were not enacted with the express purpose of furthering the public health, safety, morals or the general welfare. Id. at 104-05. The purposes of the 30% Rule include curbing nuisance complaints and property deterioration and preserving neighborhood character. These purposes fall under the general umbrella of "the public health, safety, morals or the general welfare" The Foster court distinguished itself from Leighton because, while Leighton involved someone being unable to have her rights regarding use of the property expanded, Foster involved restricting a property's use to less than what was legal when it was purchased. Foster, 97 N. W.2d at 276 ("a purchaser of real property is entitled to place some reliance upon zoning ordinances which have classified the property being purchased."). Here, Homeowners purchased homes without rental licenses on blocks with 30% or higher rental concentration after the 30% Rule was in place. Thus, each Homeowner would only need the. "consent" of a neighbor to expand the legal uses of his or her property beyond what was available when the property was purchased, Homeowners purchased homes without rental licenses or the eligibility to obtain one. The 30% Rule, for reasons related to the general welfare of the City, is complete in and of itself and not dependent upon the vote or act of anyone. At most, the Rule provides for the removal or modification of its prohibition by the act of those 18 with rental licenses. See Leighton, 16 F.Supp. at 104. Even if the 30% Rule is somewhat awkwardly fit into the "consent provision" analysis, it does not violate Homeowners' right to procedural due process. Ultra Vires Homeowners also argue that the 30% Rule is invalid because it exceeds the scope of the City's authority. They argue that the Rule is an exercise of the City's zoning power under Minn. Stat. § 462,357, but it is unlawful because it does not regulate the `arse" of the property, it regulates who uses the property. The City argues that the 30% Rule was enacted under the City's broad police powers, not its zoning authority or, in the alternative, the 30% Rule is a valid zoning regulation. Ordinances are presumed to be valid, and are not to be set aside by the courts unless their invalidity is clear. Bolen v. Glass, 755 N.W,2d 1, 5 (Minn. 2008). Minn. Stat. § 462.357 provides in part: For the purpose of promoting the public health, safety, morals, and general welfare, a municipality may by ordinance regulate on the earth's surface, in the air space above the surface, and in subsurface areas, the location, height, width,. . , the density and distribution of population, the uses of buildings and structures for trade, industry, residence, recreation, public activities, or other purposes, and the uses of land for trade, industry, residence, recreation, ... The regulations shall be uniform for each class or kind of buildings, structures, or land and for each class or kind of use throughout such district. Homeowners argue that a rental regulation concerns who owns and occupies property, not the "use" of the property. If the 30% Rule regulates the "use" of property, it is authorized by Minn. Stat. § 462.357 and within the City's authority, provided its purpose is promoting the public health, safety, morals, and general welfare. As noted above, the 30% Rule's purposes qualify as promoting the public health, safety, morals, and general welfare. 19 Both parties appear to agree that Minnesota courts have not directly ruled on the issue of whether rental regulations concern "use" or "occupancy." Homeowners cite to a number of cases from other jurisdictions to show that residential rental restrictions relate to occupancy and not to "use." The City cites to other foreign cases in which rental restrictions are allowed under zoning authority. Homeowners characterize this as a "very minority rule." Without an applicable "rule" on this question, the Court must look at the specific ordinance challenged here and make its own determination. Again, Homeowners strain logic to fit the 30% Rule into a categorization that serves their purposes. The 30% Rule is not about occupancy or who occupies a property, it is about how the property is used for residence. The Rule does not address who can rent a house, who can buy a house, or even who can live in a house, provided that person is not paying rent to the owner. The issue addressed by the 301/6 Rule is whether or not a home is being rented, it is completely silent on who lives there as long as that person is not renting. This particular rental regulation is more reasonably viewed as regulating the "use" of property than the "occupancy" of it. Homeowners contend the Rule still runs afoul of Minn. Stat. § 462.357's requirement that the regulations be uniform because it allows some to rent and prohibits others from renting. The 30% Rule applies uniformly, If one is on a block with less than 30% rental, he or she is eligible for a rental license; if one is on a block with more than 30% rental, he or she is not eligible for a standard rental license. When there is a legitimate distinction, the fact that one person is eligible and another is ineligible does not mean the regulation is not uniform. As noted above, there is such a distinction in this case. Further, if the 30% Rule falls under the City's broad police powers, it is valid. For a home rule charter city, such as Winona, "[a] city exercises police power within its jurisdiction to 20 practically the same extent as the state itself. This power is not confined to the narrow limits of precedents based on conditions of a past era. Rather, it is a power which changes to meet changing conditions, which call for revised regulations to promote the health, safety, morals, or general welfare of the public." City of Duluth v. Cerveny, 16 N.W,2d 779, 783 (Minn. 1944). "It is well established that an exercise of the `police power' will be upheld where it has for its object the public health, safety, morality, or welfare, and where it is reasonably related to the attainment of those objectives." State ex rel Gopher Sales Co, v. City of Austin, 75 N.W.2d 780, 783 (Minn. 1956). Because the Court has already noted that it considers the 30% Rule a "use" restriction, the zoning analysis and the "police powers" analysis are quite similar. The 30% Rule is a restriction put in place to advance the general welfare, to put it broadly. Whether the 30% Rule is considered a zoning ordinance or a "police powers" ordinance, it is valid. Conclusion In a prior order in this matter, this Court quoted Chief Justice John Roberts in a recent opinion: "We do not consider whether the Act embodies sound policies. That judgment is entrusted to the Nation's elected leaders." Arall Fed'n oflndep. Bus. v. Sebelius, 132 S. Cl. 2566, 2576 (2012). A year earlier, Minnesota Supreme Court Justice Paul H. Anderson quoted Chief Justice John Marshall: The question, whether a law be void for its repugnancy to the constitution, is at all times a question of much delicacy, which ought seldom, if ever, to be decided in the affirmative, in a doubtful case. The [C]ourt, when impelled by duty to render such a judgment, would be unworthy of its station, could it be unmindful of the solemn obligations which that station imposes. But it is not on slight implication and vague conjecture that the legislature is to be pronounced to have transcended its powers, and its acts to be considered as void. The opposition between the constitution and the law should be such that the judge feels a clear and strong conviction of their incompatibility with each other. 21 Limmer v. Swanson, 806 N.W.2d 838,841 (Minn. 2011) (quoting Fletcher V. Peck, 10 U.S. 87, 128, 3 L.Ed, 162 (1810)). The same considerations apply to this Court's review of an ordinance passed by the City's elected leaders. Homeowners must overcome a substantial burden to have the Court hold that an ordinance passed by the City Council is illegal or invalid. There is no indication that the 30% Rule was enacted or conceived as an insidious means of keeping certain constitutionally protected classes of people out of certain neighborhoods or any other improper purpose. It is a good -faith attempt to address real problems. Homeowners articulate several ideas that they argue would better address the issues the 30% Rule is designed to address and note many reasons the Rule may not eliminate all of the ills the City hopes it will eliminate. The Court's role in this case is not to decide if the 30% Rule is a good idea, that decision belongs to the City Council. Some of the issues raised by Homeowners were also raised_ in the meetings and hearings in which the 30% Rule was considered. The City's elected leaders decided those issues did not outweigh the potential benefits of the 30% Rule. If Homeowners or some other interested party articulates the same ideas, issues, concerns, studies, and opinions regarding the 30% Rule to the City Council at some future meeting, perhaps with newly elected members, they may convince enough council members that the Rule does not serve the City well. That is the proper venue for arguing whether the 30% embodies sound policies. The Court's role is to decide if Homeowners can meet their burden of showing that the 30% Rule is unconstitutional or otherwise invalid. Not only have Homeowners not shown they are entitled to summary judgment, they have not raised any genuine issues of material fact on the legality of the Rule. Separation -of -powers principles require that the ordinance be presumed constitutional and valid. Homeowners' attacks on the legality of the Rule are largely based on somewhat clever characterizations of the Rule and/or foreign case-law. These attacks are not 22 enough to overcome the presumption of legality and have this Court set aside the conclusions reached by the City's elected representatives. For the above reasons, Homeowners' motion for summary judgment must be denied and the City's motion for summary judgment must be granted. 23 B. City of North Mankato Documents CITY OF NORTH MANKATO 311 Page B.1— Draft Rental Density Ordinance CITY OF NORTH MANKATO 321 Page §151.18 RENTAL DENSITY (A) In R -A, R-1, R -IS and R-2 zoning districts, no more than 10% of the single- family lots on any block shall be eligible to obtain a rental license, unless a temporary license is granted by the City Council as provided herein. Table 1 indicates how many single-family lots per block are able to be licensed as a rental property based on the number of lots that exist in a block. Table 1 Lots/Block Rental Units Allowed 1-14 1 15-24 2 25-34 3 35-44 4 45-54 5 55-64 6 65-74 7 75-84 8 85-94 9 (B) The following guidelines shall apply to determine eligible blocks and lots. (1) For the purposes of this subchapter, a BLOCK shall be defined as an area of land enclosed within the perimeter of streets, watercourses, public parks, municipally owned lots and city boundaries. (2) This subchapter shall apply to legally conforming lots of record and legally nonconforming lots of record. For the purposes of this subchapter, lots of record may also be referred to as PROPERTIES, PROPERTY or LOTS. (3) If a block contains more than one type of zoning district, only R -A, R-1, R -IS and R-2 zoning district lots shall be included in the calculation of the total number of lots per block. (4) Legal nonconforming rental property shall be allowed to continue as long as the legal nonconforming use complies with § 151.13 and 156.052 of the Zoning Code. (5) Commercial or industrial uses located in an R -A, R-1, R -IS and R-2 zoning districts shall not be included in the calculation of the total number of lots per block. (6) Properties that are exempt pursuant to § 151.18 (A)shall not be included in the calculation of the total number of lots per block. (C) If the number of rental properties meets or exceeds the permitted number of rental properties per defined block on the effective date of this subchapter, no additional rental licenses shall be approved for the block, unless a temporary license is granted by the City Council as provided herein. Existing rental licenses may be renewed; however, should a rental license not be renewed, or if the rental license is revoked or lapses, the rental license shall not be reinstated unless it is in conformance with this subchapter and other applicable sections of the city code. (D) Exceptions (1) Parcels zoned CBD, R-3, R-4, OR -1, B-1, B-2, B-3, M-1, M-2, 14, TUD, P-1 (2) Single-family homes or duplexes in which the owner resides within a portion of the building are exempt unless an unrelated person resides within the owner's dwelling unit. If the building is a duplex, only that portion of the building in which the owner resides alone or with related persons is exempt. The other portion of the duplex requires a rental license. (3) Rental licenses for State Licensed residences shall be exempt from this subdivision. If the property is no longer licensed by the State of Minnesota, a new rental license application shall be submitted and reviewed for compliance with this subdivision and other applicable City and Building Code sections. (E) Properties eligible to receive a rental license in R -A, R-1, R -IS, and R-2 zoning districts will be determined as follows: (1) Any property zoned R -A, R-1, R -IS, RS, and R-2 is eligible to receive a rental license until the number of single-family and two-family dwellings issued rental licenses exceeds 10% of all the single-family and two-family dwellings in the City of North Mankato. (2) This Subdivision shall apply to legally conforming properties of record and legally nonconforming properties of record, as defined in Chapter 156, in existence at that time of the effective date of this ordinance or approved by new subdivision of unplatted and undeveloped property after the effective date of this ordinance. (F) For the purposes of this Subdivision, the following shall apply: (1) Properties licensed for rental purposes on the effective date of this ordinance shall be included in the calculation of the number of permitted rental properties. (2) Existing rental licenses may be renewed or transferred per Subdivision 151.07, 151.08 and 151.09. § 151.19 TEMPORARY RENTAL LICENSES. (A) A temporary rental license may be granted by the City for unlicensed properties to an owner of a property for a period not to exceed (12) months for the following circumstance(s): (1) The property is listed for sale and the owner and the owner's family are not residing at the property. (2) The owner and the owner's family are not residing at the property and the occupants are providing a caretaking function for the property. (3) The City Administrator or his designee is granted authority to extend the temporary rental license for two consecutive six (6) month periods as long as the home is actively marketed for sale. (4) Twelve (12) months from the date of issuance, a temporary rental license shall expire and is not subject for renewal unless granted an extension by the City Administrator or his designee as outlined in chapter 151, section 19, subsection 3. § 151.20 GRANTING RENTAL LICENSES. (A) Granting of additional rental licenses in R -A, R-1, R -IS, and R-2 shall be subject to the following: (1) On or by March 1st of each year, the City Administrator or his designee shall determine the number of rental licenses available in R -A, R-1, R- IS, and R-2 zoning districts based on the number of single-family and two-family dwellings that have not renewed or transferred a rental license and the number of newly constructed single-family and two-family dwellings in the city. (2) A waiting list for property owners seeking to obtain a rental license will be maintained by the City Administrator or his designee. All individuals on the waiting list will be notified by official mail of the process of bidding on newly available rental licenses. (3) Licenses will be issued for one year periods to property owners prioritized on the waiting list. After purchased, licenses may be renewed at the standard renewal rate. § 151.21 RENTAL PROPERTY PARKING REQUIREMENTS A minimum of two (2) off-street parking spaces are required to accommodate all rental dwelling units containing one (1) or two (2) bedrooms. Each successive bedroom requires the addition of one (1) off-street parking space. The location of any off-street parking area shall be hard surfaced and meet all applicable setbacks. § 151.99 PENALTY. (A) Any violation of this chapter is a misdemeanor and is subject to all penalties provided for such violations. (B) It is a misdemeanor for any person to prevent, delay, or provide false information to any city official, or his or her representative, while they are engaged in the performance of their duties as set forth in this chapter. (C) In addition to bringing criminal charges for violation of this chapter, the city may seek a civil injunction against any licensee or occupant who violate any terms of this chapter. (D) All applicants must include in any lease (written or oral) a copy of this chapter and must further advise all tenants that a violation of this code by the applicant (landlord) or any occupant of the premises could result in termination or revocation of the rental license and immediate eviction of all tenants. (Ord. 234, passed 12-1-2003; Am. Ord. 264, passed 11-21-2005) B.2 — Moratorium Resolution CITY OF NORTH MANKATO 331 Page RESOLUTION NO. 76-15 RESOLUTION ORDERING A MORATORIUM ON THE GRANTING OF NEW RENTAL LICENSES WITHIN THE CITY OF NORTH MANKATO, MINNESOTA WHEREAS, The City of North Mankato is conducting a study relating to limiting the number of rental housing licenses within areas zoned RA, RI S, R or R2; and WHEREAS, it will take approximately six to nine months to complete such study; and WHEREAS, The City of North Mankato wishes to complete the study prior to issuing any new rental licenses in the above zoned areas; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NORTH MANKATO, MINNESOTA, as follows: 1. The City of North Mankato hereby adopts a Moratorium on accepting applications for rental housing licenses in areas zoned RA, RIS, RI or R2 for a period of twelve (12) months unless earlier ended by action of the City Council. 2. The Moratorium includes single family dwellings in R3 and R4 districts. 3. The City Administrator, in consultation with the City Attorney, is allowed to waive the Moratorium for up to three licenses that may have been contemplated in a sale initiated by signing a purchase agreement prior to the date of this action. Adopted by the City Council this 2151 day of Septem City 04efk / B.3 — City Code Section § 151.11 Conduct on Licensed Premises CITY OF NORTH MANKATO 341 Page R § 151.11 CONDUCT ON LICENSED PREMISES. (A) It shall be the responsibility of the licensee to take appropriate action following conduct by occupant(s) or guest of the occupant(s) which is in violation of any of the following: (1) Anytime, day or night, that the premises are involved in any of the following: (a) Unlicensed sale of intoxicating liquor or non -intoxicating malt beverages. (b) Furnishing intoxicating liquor or non -intoxicating malt beverages by persons under the age of 21 years. (c) Consumption of intoxicating liquor or non -intoxicating malt beverages by persons under the age of 21 years. (d) Vice crimes. (e) Sale or use of illegal drugs by any person on the premises. (f) Storage of unlicensed or inoperable vehicles, trailers, boats, RVs and campers. (g) Allowing grass or weeds to exceed 6 inches in height. (h) Failure to remove ice or snow on adjacent sidewalks within 48 hours after snow or ice has ceased to fall. (i) Parking of any vehicles in front yard areas, except permitted driveways. 0) Failure to pay monthly utility bill by the due date. (2) Anytime, day or night, that the premises are involved in a manner affecting the neighborhood and a citation, arrest or letter of transmittal is made for any of the following: (a) Disorderly conduct. (b) Disturbing the peace. (c) Obstructing an officer. (d) Assault (including domestic assault). (e) Criminal damage to property. (f) Vice crimes. (3) Between the hours of 7:00 a.m. and 10:00 p.m. for any of the following: (a) Where the police respond initially and describe the activity as "loud and intrusive" or in any manner affecting the tranquility of the neighborhood (such as, excessive littering, public urination, and the like) and persons involved refusing to comply with police directive to curtail the behavior within 10 minutes. (b) Where the police respond a second time and describe the activity as "loud and intrusive" or in any manner affecting the tranquility of the neighborhood (such as, excessive littering, public urination, and the like) on both occasions. (c) Where the police respond on 3 separate dates and describe the activity as "loud and intrusive" or in any manner affecting the tranquility of the neighborhood (such as, excessive littering, public urination, and the like). (4) Between the hours of 10:00 p.m. and 7:00 a.m. for any 1 or more of the following: (a) Where police describe the noise level outside of the confines of the dwelling unit as "loud and intrusive." This description should give some indication of the distance that the noises are heard. (b) Where people are using profanity that can be heard outside the confines of the dwelling unit. (c) Where music, either from the confines of the dwelling unit, the yard area of the dwelling unit or any parking area defined for the dwelling unit, can be heard from the street, alley or neighboring yards. (d) Where a gathering is going on either in and/or out of the dwelling unit in a manner that involves any of the following: 1. Disruption of the neighbors, such as, revving of cars, squealing of tires, loud shouting, and the like. 2. Littering. 3. Inappropriate behavior, such as, urinating in yards, persons passed out, and the like. 4. Damaging of property: and where after investigation the officer(s) can show that the inappropriate activity was directly related to the licensed premises. Proof may include, but is not limited to, direct observation by officers, admissions by persons present or testimony/statements by complainants and witnesses. (e) Where officers are unable to personally verify the existence of any of the criteria listed in 1. through 4. above, but complainants/witnesses are willing to testify to 1 or more of those facts at a criminal or civil proceeding. (B) The Chief of Police or his or her designee shall be responsible for enforcement and administration of this section. (C) Upon determination by the Chief of Police that a licensed premises was involved in a violation of division (A) of this section, the Chief of Police shall notify the licensee by fust class mail of the violation and direct the licensee to take steps to prevent further violations. A copy of said notice shall be sent by fust class mail to the occupant in violation of division (A) of this section. (D) Upon a second violation within 12 months of division (A) of this section involving a guest or an occupant of a licensed premises, the notice provided under division (C) of this section shall require the licensee to submit a written report of the action taken to prevent further violations on the premises. This written report shall be submitted to the Police Chief within 5 days of request of the report and shall detail all actions taken by the licensee in response to all notices regarding violations to division (A) of this section within the preceding 12 months. If the licensee fails to comply with the requirements of the subsection, the rental dwelling license for the individual licensed premises may be denied, revoked, suspended, or such other penalty imposed by the City Council. An action to deny, revoke, suspend or renew a license under this section shall be initiated by the City Council at the request of the Police Chief. (E) If a third or subsequent violation of division (A) of this section involving a guest of or an occupant of a licensed premises occurs within 12 months after any 2 previous instances for which notices were sent to the licensee regarding the same licensed premises, the rental dwelling license for the individual rental unit may be denied, revoked, suspended, or such other penalty not imposed by the City Council. An action to deny, revoke or suspend a license or impose any other penalty under this section shall be initiated by the City Council at the request of the Police Chief. (F) No adverse license action shall be imposed if the violation to division (A) of this section occurred during the pendency of eviction proceedings (unlawful detainer) or within 30 days of notice given by the licensee to an occupant to vacate the premises, where the violation was related to conduct by that occupant, other occupants, or the occupant's guests. Eviction proceedings shall not be a bar to adverse license action, however, unless they are diligently pursued by the licensee. Further, an action to deny, revoke, suspend, or not renew a license based upon violations of this section may be postponed or discontinued at any time if it appears that the licensee has taken appropriate measures which will prevent further violations to division (A) of this section. (G) A determination that the licensed premises has been used in violation of division (A) of this section shall be made by the Council upon substantial evidence to support such a determination. It shall not be necessary that criminal charges be brought to support a determination of violation to division (A) of this section, nor shall the facts of dismissal or acquittal of criminal charges operate as a bar to adverse license action under this section. (Ord. 234, passed 12-1-2003; Am. Ord. 264, passed 11-21-2005; Am. Ord. 8, 4th series, passed 1-16-2007; Am. Ord. 17, 4th series, passed 1-17-2008; Am. Ord. 21, 4th series, passed 1-20- 2009) C. 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Q a) Q a) N _ '�, 'O a) a) c ° Y E E C O Q Q T C Y Y d C N L T .. N .E .E E E L a) m Q m O O a) O a) m m O bn .�—_ in m Y a) Y Q V Q Q W W Q V C— C C C Y Y a) L — L 0 U C_ m m C Y a) L= bD Y C >> `/ a) C in Y C> a) y y a) T \ a) Y L a) C J C O U a) a) a) C O V1 O C �"� m .0 N M .0 V Ln l0 U N O m U> m m O m N m __ O C w ` N C Q O Y> aT+ O Z 2 2 .0 = 0= d' = V V Z Q • • • • • • • • • • • • • • • • • • • • • • • • m C N C N Q a) Y N 3 a v D. Legal Framework — Dean vs. City of Winona, MN CITY OF NORTH MANKATO 361 Page D.1-843 N.W.2d 249 (2014) — Ethan DEAN, et al., Appellants, v. CIN OF WINONA, Respondent. — No. A13-1028 — Court of Appeals of Minnesota — February 24, 2014 371 Page CITY OF NORTH MANKATO STATE OF NUNNESOTA IN COURT OF APPEALS A13-1028 Ethan Dean, et al., Appellants, vs. City of Winona, Respondent. Filed February 24, 2014 Affirmed Larkin, Judge Winona County District Court File No. 85 -CV -11-2329 Lee U. McGrath, Anthony Sanders, Katelynn McBride, Institute for Justice, Minneapolis, Minnesota (for appellants) George C. Hoff, Shelley M. Ryan, Hoff, Barry & Kozar, P.A., Eden Prairie, Minnesota (for respondent) Susan L. Naughton, League of Minnesota Cities, St. Paul, Minnesota (for amicus curiae League of Minnesota Cities) Erick G. Kaardal, Mohrman & Kaardal, P.A., Minneapolis, Minnesota; and Daniel E. Frank, (pro hac vice), Sutherland Asbill & Brennan LLP, Washington, D.C. (for amicus curiae The Minnesota Free Market Institute at Center of the American Experiment) Jarod M. Bona, Ann A. Parmley, Alvin Johnson Jr., DLA Piper LLP, Minneapolis, Minnesota (for amicus curiae Minnesota Vacation Rental Association) Teresa J. Nelson, American Civil Liberties Union of Minnesota, St. Paul, Minnesota (for amicus curiae American Civil Liberties Union of Minnesota) Judge. Considered and decided by Connolly, Presiding Judge; Worke, Judge; and Larkin, Cydwrr_16aULi 1. A municipality may use its police power to limit the number of lots on a block that are eligible to obtain certification as a rental property. 2. An ordinance that establishes a neutral, numerical limit on the number of lots on a block that are eligible to obtain certification as a rental property does not violate equal protection or due process under the Minnesota Constitution. OPINION LARKIN, Judge Appellants, owners of residential properties in respondent municipality, challenge the summary judgment upholding respondent's ordinance that limits, to 30%, the number of lots on a block that are eligible to obtain certification as a rental property. Because respondent's adoption of the ordinance was an authorized exercise of its police power and because appellants have not met their burden to show that the ordinance is unconstitutional, we affirm. FACTS This case stems from respondent City of Winona's adoption of an ordinance that limits, in certain districts of the city, the number of lots on a block that are eligible to obtain certification as a rental property. In 2003, respondent's city council requested that its planning commission consider the effectiveness of respondent's off-street parking regulations, particularly regarding rental properties, and most significantly around the 2 Winona State University campus. Members of the planning commission noted that an increasing number of residential properties were being converted from single-family usage to rental usage, which resulted in increased parking demands. One of the suggested solutions to the problem was limiting the number of rental properties per block in residential areas. In December 2004, respondent's city council issued a six-month moratorium on the certification of new rental housing. During the moratorium, the planning commission initiated discussions and developed a list of proposed code modifications pertaining to rental housing density and off-street parking issues. Later, the planning commission held a series of public -input meetings with landlords, homeowners, and others. In April 2005, in conjunction with the planning -commission discussions, respondent's mayor initiated a series of town meetings designed to address "density, parking, and aesthetic issues within the `area' of the university." Landlords, homeowners, students, and others attended the meetings. After the last meeting, the mayor created a core study group to identify issues and possible solutions pertaining to university neighborhoods for the planning commission's consideration. The council extended the moratorium for an additional six months to allow the study group and planning commission to complete their work. A Parking Advisory Task Force was also formed in 2005 to consider the same issues and the planning commission's proposals. The task force noted that at that time, rental -housing units comprised about 39% of respondent's total housing units, but 52% of the complaints received by the Community Development Department (CDD) related to rental properties. In August of 2005, the task force began discussing the idea of 3 restricting the number of rental properties per block. Because rental housing units comprised approximately 39% of the total housing units, it was suggested that the number of rental units be restricted to 30% of the total properties on any given block. The task force adopted a motion to forward a "30% rule" to the planning commission for its consideration. The task force acknowledged that such a rule could prevent out-of- town individuals from purchasing residential property in Winona and that it could hinder the ability of current residents to sell their properties. Nonetheless, the task force favored the 30% rule and decided to seek studies and findings on the effect of rental housing on the area. The planning commission discussed the 30% rule at two meetings in October 2005. It noted that the task force believed that neighborhoods heavily populated with student rental housing tend to become run-down and unattractive. The planning commission noted that according to county data from 2004, the CDD found that 95 of the 99 addresses that had two or more calls for police service based on noise and party - related complaints were rental properties. The planning commission also noted that 52% of the zoning violations that resulted in written violations during 2004 were for rental properties. After holding a public hearing on the issue, the planning commission voted six to three to recommend the 30% rule to respondent's city council. The city council held a public meeting regarding the rule in November 2005. Several members of the community spoke for and against the rule. Opponents voiced concern that property values would suffer 11 Proponents voiced a desire to protect neighborhoods and prevent areas from becoming dominated by rental units. The city council passed the 30% rule at the meeting and adopted the rule on December 5. In February 2009, the planning commission once again considered the 30% rule. The city planner noted that 142 residential properties had been certified for rental since the rule was enacted and that those units were dispersed throughout Winona rather than concentrated. But planning -commission members disagreed regarding whether or not the rule was working. In March, the city council created a new task force to examine the 30% rule. Its goal was to consider ways for residents to rent their homes in extraordinary circumstances despite the 30% cap, as well as ways to encourage the conversion of rental properties into owner -occupied properties. In February 2010, the task force recommended that respondent retain the 30% rule. The task force noted that "[a]lthough the general consensus of the Task Force was that the Rule has, since adoption, had the intended [effect] of dispersing rental patterns away from core university neighborhoods, not all were supportive of the method." The CDD's program development director described the 30% rule as having "preserved affordable housing and reduced conversions as intended." In October 2011, appellants Ethan Dean, et al., filed the underlying lawsuit. Appellants, collectively, were the owners of three houses purchased after adoption of the 30% rule. Appellant Ethan Dean purchased his house in 2006, planning to live in it. In 2009, Dean was preparing for a military tour in Iraq and wanted to rent the house out. He could not obtain rental certification because of the 30% rule. At the time of the E summary -judgment proceeding in district court, Dean had obtained temporary certification and had been renting his house out since 2010. Appellant Holly Richard also purchased her house in 2006. In 2009, she accepted a job in another state. She tried to sell her house, but after receiving no offers, she decided to rent it out. She was unable to obtain rental certification because of the 30% rule. Richard entered into a rent -with -the -option -to -buy agreement with a tenant. In February 2010, respondent discovered the rental arrangement and ordered the tenant to vacate the property. At the time of the summary -judgment proceeding, Richard had been renting her house out since April 2010. She first obtained temporary certification. Later, she obtained standard rental certification after the license of another property on her block lapsed.' Appellants Ted and Lauren Dzierzbicki, Illinois residents at the time of the summary -judgment proceeding, purchased a house in Winona in 2007, where their daughter attended college. They made improvements to the house, intending that their daughter would live in it and rent space in the house to other students. The Dzierzbickis could not obtain rental certification because of the 30% rule. Their house has been empty since the spring of 2010, when their daughter graduated. Appellants' lawsuit challenges the 30% rule as an ultra vires act exceeding respondent's zoning powers and as unconstitutional under the Minnesota Constitution. Appellants seek declaratory and injunctive relief, as well as nominal damages. ' Appellants Dean and Richard remain in this lawsuit with claims for nominal damages. Respondent moved to dismiss them from the suit for lack of standing. That motion was denied, and the denial is not challenged on appeal. 6 In February 2012, the planning commission received the report of a consulting firm, the Hoisington Koegler Group Inc. (HKG), which had been retained to review the literature on the impact of rental -housing concentration on neighborhood quality and liveability. The HKG report considered five other cities in addition to Winona and concluded that "the concentration of rental housing in Winona results in increased levels of nuisance and police violations in those neighborhoods" and that "the concentration of rental housing leads to a decreased neighborhood quality and liveability." Also in February 2012, the planning commission discussed moving the 30% rule from chapter 43, the zoning chapter of respondent's code, to chapter 33A, the rental - housing chapter, partly because respondent's charter provided additional legal authority for the 30% rule and partly because other cities codified similar provisions in housing codes instead of in zoning codes. The 30% rule was moved to its present location in respondent's rental -housing code in March 2012. In 2012, all parties moved for summary judgment. They agreed that there were no genuine issues of material fact and that the matter would be appropriately decided as a matter of law. After a January 2013 hearing, the district court denied appellants' motion and granted summary judgment to respondent. ISSUES I_ Is the 30% rule an ultra vires act that exceeds the powers delegated to respondent by the Minnesota legislature? II_ Have appellants shown that the 30% rule is unconstitutional? 7 ANALYSIS The case comes before us on appeal of the district court's award of summary judgment. The standard of review in an appeal from summary judgment is de novo. Allen v. Burnet Realty, LLC, 801 N.W.2d 153, 156 (Minn. 2011). The ordinance giving rise to the underlying dispute provides in relevant part: 33A.03 — RENTAL HOUSING LICENSE (i) Limitation of rental housing in low density neighborhoods. In [certain] districts of the city, no more than 30 percent (rounded up) of the lots on any block shall be eligible to obtain certification as a rental property, including homes in which roomers and/or boarders are taken in by a resident family.... When determining the number of eligible properties on a block, the number shall be the lowest number that results in 30 percent or more of the residential lots being rental. Winona, Minn., City Code ch. 33A.03(i) (2013). There is an exception for rental properties that were certified when the 30% rule was adopted, but such properties are counted among the 30% of allowable rental properties for purposes of determining whether new properties may be certified. Id. The ordinance also allows for temporary certification under limited circumstances. Id. Appellants argue that the 30% rule is an ultra vires act that exceeds the powers delegated to respondent by the Minnesota legislature. Appellants also argue that the 30% rule violates their rights, under the Minnesota Constitution, to equal protection, substantive due process, and procedural due process. We address each argument in tum. I. Appellants argue that respondent "lacks the power to enact the 30 percent rule." Respondent counters that the 30% rule is a valid exercise of its broad police power under the "all powers" grant in the City of Winona Charter. Respondent, a home rule charter city, has by virtue of its charter "all powers, rights, privileges and immunities granted to it by this Charter and by the constitution and laws of the State of Minnesota and all powers existing in a municipal corporation at common law." Winona, Minn., City Charter ch. 1.02 (1983). "[A home rule charter city] may provide . . . for the regulation of all local municipal functions as fully as the legislature might have done before home rule charters for cities were authorized by constitutional amendment in 1896." Minn. Stat. § 410.07 (2012). " [I]n matters of municipal concern, home rule cities have all the legislative power possessed by the legislature of the state, save as such power is expressly or impliedly withheld." Bolen v. Glass, 755 N.W.2d. 1, 4-5 (Minn. 2008) (quotation omitted). Generally, police power "refers to the power of the state and its political subdivisions to impose such restraints upon private rights as are necessary for the general welfare. This government power is essential and difficult to limit, as it includes all matters of public welfare." In re 1994 and 1995 Shoreline Improvement Contractor Licenses of Landview Landscaping, Inc., 546 N.W.2d 747, 750 (Minn. App. 1996) (quotations omitted), review denied (Minn. June 11, 1996). The concept of police power has a long history in Minnesota. "The term `police power' ... means simply the power to impose such restrictions upon private rights as are 9 practically necessary for the general welfare of all." State ex rel. Beek v. Wagener, 77 Minn. 483, 494, 80 N.W. 633, 635 (1899). [I]n the exercise of its police powers a state is not confined to matters relating strictly to the public health, morals, and peace, but, as has been said, there may be interference whenever the public interests demand it; and in this particular a large discretion is necessarily vested in the legislature, to determine not only what the interests of the public require, but what measures are necessary for the protection of such interests. If, then, any business becomes of such a character as to be sufficiently affected with public interest, there may be a legislative interference and regulation of it in order to secure the general comfort, health, and prosperity of the state, provided the measures adopted do not conflict with constitutional provisions, and have some relation to, and some tendency to accomplish, the desired end. Id. at 495, 80 N.W. at 635 (citation omitted). The breadth of police power is equally well established. "The development of the law relating to the proper exercise of the police power of the state clearly demonstrates that it is very broad and comprehensive, and is exercised to promote the general welfare of the state . . . . And the limit of this power cannot and never will be accurately defined.. . ." Id., see also City of St. Paul v. Dalsin, 245 Minn. 325, 329, 71 N.W.2d 855, 858 (1955) ("Judicial concepts of what is a sufficient public interest to invoke the police power, and of whether a certain remedy is reasonably appropriate to accomplish its purpose without going beyond the reasonable demands of the occasion so as to be arbitrary, are not static but are geared to society's changing conditions and views."). We easily conclude that the public has a sufficient interest in rental housing to justify a municipality's use of police power as a means of regulating such housing. See 10 City of Morris v. Sax Investments, Inc., 749 N.W.2d 1, 13-14 n.7 (Minn. 2008) (recognizing that there are "many permissible areas" for "municipal regulation of rental housing"). In fact, the landlord -tenant relationship is currently subject to extensive government regulation. See Minn. Stat. §§ 504B.001-.471 (2012) (governing landlord - tenant relationships). In this case, the record establishes that respondent determined that the conversion of owner -occupied homes to rental properties and the concentration of such properties in some neighborhoods began to have a negative impact on the quality and liveability of those neighborhoods. That occurrence implicated the public interest and welfare. Because "there may be interference whenever the public interests demand it," respondent was authorized to address the circumstances through its police power so long as, "the measures adopted [did] not conflict with constitutional provisions, and [had] some relation to, and some tendency to accomplish, the desired end." Wagener, 77 Minn. at 495, 80 N.W. at 635. Appellants do not persuasively dispute respondent's authority to regulate rental housing within its borders through its police power. Instead, appellants contend that the ordinance was an exercise of respondent's statutory zoning power and not an exercise of its police power. Appellants further contend that the ordinance was not a valid exercise of zoning authority. See Minn. Stat. § 462.357, subd. 1 (2012) (setting forth municipal zoning authority). Because we conclude that respondent's adoption of the ordinance was an exercise of its police power, it is not necessary to determine whether it was also an exercise of its zoning authority. We therefore do not address appellants' zoning arguments. 11 In sum, respondent's adoption of the 30% rule was an authorized exercise of police power, subject to constitutional limitations. See Wagener, 77 Minn. at 495, 80 N.W. at 635. Because the validity of respondent's exercise of police power is determined under the analysis applicable to appellants' constitutional claims, we turn our attention to those claims. II. Appellants argue that the 30% rule "conflict[s] with constitutional provisions." Id. Specifically, they argue that it violates their rights to equal protection, substantive due process, and procedural due process under the Minnesota Constitution. See Minn. Const. art. I, §§ 2 ("No member of this state shall be disenfranchised or deprived of any of the rights or privileges secured to any citizen thereof, unless by the law of the land or the judgment of his peers."), 7 (stating that no person shall "be deprived of life, liberty or property without due process of law). Appellants state that their constitutional claims "are both facial and as applied." "The constitutionality of an ordinance is a question of law[,] which this court reviews de novo." Hard Times Cafe, Inc. v. City of Minneapolis, 625 N.W.2d 165, 171 (Minn. App. 2001) (quotation omitted). A municipal ordinance is presumed to be constitutional, and the burden of proving that it is unconstitutional is on the party challenging it. Minnesota Voters Alliance v. City of Minneapolis, 766 N.W.2d 683, 688 (Minn. 2009); see also Bodin v. City of St. Paul, 305 Minn. 555, 558, 227 N.W.2d 794, 797 (1975) ("A successful challenge to ... legislation [allegedly resulting in unequal treatment of persons similarly situated] requires proof of unconstitutionality beyond a 12 reasonable doubt. The burden to overcome this stringent presumption is upon the party alleging the unconstitutionality of the provision at issue." (footnote omitted)). "If the reasonableness of an ordinance is debatable, the courts will not interfere with the legislative discretion." Holt v. City of Sauk Rapids, 559 N.W.2d 444, 445 (Minn. App. 1997) (quotation omitted), review denied (Minn. Apr. 24, 1997). A. Equal Protection "A party may raise an equal protection challenge to a statute based on the statute's express terms, that is, a `facial' challenge, or based on the statute's application, that is, an `as -applied' challenge." State v. Richmond, 730 N.W.2d 62, 71 (Minn. App. 2007), review denied (Minn. June 19, 2007). `By definition, a facial challenge to a statute on equal protection grounds asserts that at least two classes are created by the statute, that the classes are treated differently under the statute, and that the difference in treatment cannot be justified." In re McCannel, 301 N.W.2d 910, 916 (Minn. 1980). A facially neutral statute can violate equal protection if it is applied in a way that creates an impermissible classification or discriminates in practice. See State v. Frazier, 649 N.W.2d 828, 833-34 (Minn. 2002) (explaining that to prevail on an equal -protection challenge where the challenged statute did not, on its face, classify on the basis of race, the challenger had to "demonstrate that the statute create[d] a racial classification in practice"); McCannel, 301 N.W.2d at 916 (stating that "the equal protection clause provides protection against arbitrary discrimination resulting from the express terms of a statute as well as from a statute's improper execution"); State v. Stewart, 529 N.W.2d 493, 497 (Minn. App. 1995) (holding that an ordinance violated due process and equal 13 protection rights based on the city's arbitrary application and enforcement of the ordinance). An equal -protection challenge requires an initial showing that "similarly situated persons have been treated differently." State v. Cox, 798 N.W.2d 517, 521 (Minn. 2011) (quotation omitted). In determining whether two groups are similarly situated, the focus is on "whether they are alike in all relevant respects." Id. at 522. Appellate courts "routinely reject equal -protection claims when a party cannot establish that he or she is similarly situated to those whom they contend are being treated differently." Schatz v. Interface Care Or., 811 N.W.2d 643, 656 (Minn. 2012) (quotation omitted). The 30% rule is unlike laws that expressly identified groups that were to be treated differently and therefore violated equal protection under the Minnesota Constitution. See State v. Russell, 477 N.W.2d 886, 887, 889 (Minn. 1991) (holding that Minn. Stat. § 152.023, subd. 2 (1990), violated equal protection because it imposed disparate treatment on two similarly situated groups: possessors of three or more grams of crack cocaine were guilty of a third-degree offense and possessors of less than ten grams of cocaine powder were guilty of a fifth -degree offense); see also Weir v. ACCRA Care, Inc., 828 N.W.2d 470, 476 (Minn. App. 2013) (holding that Minn. Stat. § 268.035, subd. 20(20) (2012), violated equal protection because it provided that immediate -family - member caregivers were not covered under the unemployment statutes but non - immediate -family -member caregivers were covered); Healthstar Home Health, Inc. v. Jesson, 827 N.W.2d 444, 447, 449, 453 (Minn. App. 2012) (holding that a pay cut imposed on relative caregivers but not on caregivers who were not related to their 14 patients violated equal protection because both groups were "required to comply with the same statutes, rules and regulations" and therefore were similarly situated). The 30% rule does not set forth any facial classification providing a basis for disparate treatment, and it does not describe any particular group of property owners for whom certification is or is not available. The ordinance is facially neutral and applies equally to all property owners in the regulated districts. The ordinance sets a 30% cap, but it does not define or predetermine which lots will be certified. That determination is made based on the changing facts and circumstances on each block, and not based on the ordinance or the characteristics of lot owners. The fact that the number of lots that may be certified might be less than the number of property owners who desire certification is not a class -based distinction between two groups of property owners. Because the 30% rule does not provide that certification will be available to one particular group of property owners instead of to another, appellants fail to meet the threshold requirement of a facial equal -protection challenge by showing that the 30% rule treats similarly situated groups differently. See Cox, 798 N.W.2d at 521. Appellants also fail to present evidence of discrimination resulting from arbitrary application of the 30% rule. Appellants have not shown that respondent has done anything other than apply the mathematical formula on a first-come, first-served basis. Appellants' real complaint is about the effect of an otherwise neutral ordinance on their particular circumstances, which does not give rise to an equal -protection claim. See John Hancock Mut. Life Ins. Co. v. Comm'r of Revenue, 497 N.W.2d 250, 254 (Minn. 1993) (stating that "any difference of effect" that is the result of the unique circumstances of 15 those affected by legislation does not give rise to an equal -protection claim). Appellants complain that the 30% rule unevenly affects owners who want to rent their properties. But any uneven effects are the result of the order in which property owners attempted to have their lots certified as rental properties and not the result of discriminatory treatment stemming from respondent's application of the ordinance. "The possibility that a law may actually fail to operate with equality is not enough to invalidate it." Id. (quotation omitted). Thus, appellants' as -applied equal -protection challenge is also unavailing. Lastly, even if appellants did show that the 30% rule resulted in different treatment of similarly situated property owners, they would also have to show that the treatment was not merely different: only "invidious discrimination is deemed constitutionally offensive." Scott v. Minneapolis Police Relief Ass'n, Inc., 615 N.W.2d 66, 74 (Minn. 2000) (quotation omitted). Limiting the number of lots on a block that are eligible to obtain certification as a rental property does not rise to the level of invidious discrimination. In sum, the 30% rule establishes a neutral, numerical limit on the number of lots that are eligible to obtain certification as a rental property and applies uniformly throughout the affected districts on a first-come, first-served basis. Because appellants did not make the necessary threshold showing that the 30% rule treats them differently than other similarly situated individuals, their equal -protection claim fails as a matter of law. 16 B. Substantive Due Process Appellants assert that the 30% rule violates their right to rent their property, asserting that such a right is "guaranteed by the substantive component of the Due Process Clause of Article I, Section 7 of the Minnesota Constitution." Appellants acknowledge that no published Minnesota case has "addressed the specific contours of how the clause protects that right." For the purpose of our analysis we assume, without deciding, that the right to rent is protected by the Due Process Clause of the Minnesota Constitution. Unless a fundamental right is at stake, judicial scrutiny is not exacting and substantive due process requires only that the statute not be arbitrary or capricious; the statute must provide a reasonable means to a permissible objective. State v. Behl, 564 N.W.2d 560, 567 (Minn. 1997). Appellants do not argue that a fundamental right is at stake, so the rational -basis standard applies. See Boutin v. LaFleur, 591 N.W.2d 711, 717 (Minn. 1999) (stating that "even if a fundamental right is not implicated, in order to pass constitutional muster [a] registration statute must still meet the rational basis standard of review"). The rational -basis standard requires that: (1) "the act serve to promote a public purpose," (2) the act "not be an unreasonable, arbitrary or capricious interference" with a private interest, and (3) "the means chosen bear a rational relation to the public purpose sought to be served." Contos v. Herbst, 278 N.W.2d 732, 741 (Minn. 1979). For the reasons that follow. we conclude that the rational -basis standard is met. First, the 30% rule serves to promote a public purpose. The purpose of the ordinance is to control the number of owner -occupied homes that are converted to rental 17 properties and to avoid heavy concentrations of such converted properties. As we concluded in section I of this opinion, that purpose serves the public interest. Second, the ordinance is not an unreasonable, arbitrary, or capricious interference with private interests. The 30% cape was adopted after a long, deliberate information - gathering process that considered public input, data, and expert review, including the HKG memorandum. Appellants attempted to refute the HKG memorandum by arguing that it was based on the number of rental properties and that it should have been based on the number of rental units. But respondent's concern was not the number of renters in an area; it was the number of properties that went from being owner -occupied to rental properties. Appellants' adverse expert provided data based only on the density of rental units, not the density of rental properties, which is not relevant to the 30% rule or to the purpose for which it was enacted.3 Third, the 30% rule bears a rational relation to the public purpose sought to be served. There is an evident connection between the imposition of a numerical cap on the number of lots that may convert from owner -occupied properties to rental properties and 2 Appellants do not argue that respondent should have used some percentage other than 30%. They argue that not having certification available for every residential property violates equal protection. We therefore do not address the propriety of the 30% cap as opposed to some other percentage. See Holt, 559 N.W.2d at 445 ("If the reasonableness of an ordinance is debatable, the courts will not interfere with the legislative discretion." (quotation omitted)). 3 In any event, the decision regarding whether certification is granted to properties or to individual rental units belongs to respondent's city council, not to this court. See Holt, 559 N.W.2d at 445 (If the reasonableness of an ordinance is debatable, the courts will not interfere with the legislative discretion." (quotation omitted)). For the same reason, we do not address appellants' arguments that the 30% rule is not an effective means of improving parking or controlling student behavior. These issues are not within our scope of review. See id. the desire to control the number and concentrations of such converted properties. It is undisputed that the 30% rule has limited the number and location of converted properties, as it was intended to do. In arguing their substantive -due -process claim, appellants primarily rely on two cases from other jurisdictions: Gangemi v. Zoning Bd. of Appeals of Fairfield, 763 A.2d 1011, 1017-18 (Conn. 200 1) (invalidating a no -rental condition that applied to only one property and therefore served no purpose and unfairly restricted the owners' ability to sell) and Kirsch Holding Co. v. Borough of Manasquan, 281 A.2d 513, 519-20 (N.J. 1971) (invalidating ordinance prohibiting rental of seaside properties to groups of unrelated adults). Those cases are not binding on this court. See Mahowald v. Minn. Gas Co., 344 N.W.2d 856, 861 (Minn. 1984) (noting that opinions of courts of other states may be persuasive but are not binding on Minnesota courts). Moreover, Gangemi is distinguishable because the 30% rule applies to all properties in the district, not to only one. Kirsch Holding is distinguishable because the 30% rule is not a restriction on who rents properties but on how many properties can be rented. The only Minnesota case that appellants cite, City of St. Paul v. Dalsin, is also distinguishable. In Dalsin, the supreme court held that [t]he requirement that a roofer must qualify himself in warm air heating and ventilation has no reasonable relation to any justifiable regulation of the roofing trade. Since the ordinance embraces unnecessary, unreasonable, and oppressive requirements as a prerequisite to a license to install sheet metal flashings as an incidental part of the process of laying a roof, it must be held unconstitutional insofar as applies to the roofing trade. 19 245 Minn. at 330, 71 N.W.2d at 859. Unlike the requirement in Dalsin, the 30% cap on the number of lots that are eligible to obtain certification as a rental property has a reasonable relation to respondent's justifiable regulation of rental housing. In sum, the ordinance provides a reasonable means to a permissible objective and appellants have not met their burden to show that the ordinance violates their substantive right to due process under the Minnesota Constitution. C. Procedural Due Process Lastly, we consider appellants' procedural -due -process claim. Appellants contend that the 30% rule violates their "procedural due process right by unconstitutionally delegating legislative power to a property owner's neighbors." They argue that " [1]egislatures cannot delegate their power to a group of citizens," and that "[t]his rule of law is over 100 years old and guaranteed by the Minnesota Constitution." They assert that the 30% rule unconstitutionally transforms city blocks "into mini -republics, delegating the power to ban additional licenses to the [license -holding] property owners on each block." Appellants primarily rely on State ex rel. Foster v. City of Minneapolis, 255 Minn. 249, 97 N.W.2d 273 (1959). Foster involved a piece of land that was originally zoned as commercial. 255 Minn. at 250, 97 N.W.2d at 274. The property was rezoned as residential after satisfaction of a statutory requirement that the owners of two-thirds of the properties "within 100 feet of the real estate affected" give their written consent. Id. When the owners of the property applied for a permit to construct an office building on the property, their request was denied based on the new zoning classification. Id., 97 20 N.W.2d at 273-74. Foster held that the statutory requirement of consent of the owners of two-thirds of the properties "within 100 feet of the real estate affected" was "an unlawful delegation of power to impose restrictions on real property" and noted that "[w]him or caprice may [have been] the sole motivating factor" in the rezoning decision that "divested [the] property of all substantial value without compensation to [the purchasers]." Id. at 252, 254, 97 N.W.2d at 275-76. In holding that the ordinance violated due process under the federal constitution, the supreme court explained: We are of the opinion that the consent clause of § 462.18, as a prerequisite to the exercise of the city council's legislative authority to amend the comprehensive zoning ordinance, constitutes an unlawful delegation of power to impose restrictions on real property, and renders this provision of the statute invalid. It is well settled that a municipal corporation may not condition restricted uses of property upon the consent of private individuals such as the owners of adjoining property; and that it is an unreasonable exercise of police power to rest control of property uses in the hands of the owners of other property. Id. at 252-53, 97 N.W.2d at 275. Foster is readily distinguishable. Under the 30% rule, the owners of certified rental properties do not determine which other lots may be certified. The certified - property owners' views regarding whether a particular lot should be certified as a rental property are irrelevant; they can neither grant certification by consenting to it nor prevent certification by denying consent. Thus, respondent's limit on the number of lots on a block that are eligible to obtain rental certification is not a delegation of legislative power. 21 In sum, appellants have not shown that the 30% rule violates their right to procedural due process. Although we reject appellants' assertion that "the actions of [their] neighbors have denied them the right to rent," we in no way mean to diminish the impact of the 30% rule on appellants' ability to use their properties as they would like, and we are sympathetic to their circumstances. But appellants' dissatisfaction with the local majority's adoption of an ordinance limiting their ability to rent their residential properties is not a basis for the judiciary to strike down the ordinance as unconstitutional. DECISION Respondent was authorized, under its broad police power, to adopt an ordinance limiting by percentage the number of lots on a block that are eligible to obtain certification as a rental property. Because the ordinance does not discriminate against any class of property owners, either on its face or in its application, and there is a rational basis for the ordinance, the ordinance does not violate equal protection or substantive due process. And because the ordinance does not delegate legislative power to other property owners, it does not violate procedural due process. We therefore affirm the district court's award of summary judgment to respondent. Affirmed. 22 D.2 — 868 N.W.2d 1(2015) — Ethan DEAN, et al., Appellants, v. CIN OF WINONA, Respondent. — No. A13- 1028—Supreme Court of Minnesota — February 24, 2014 381 Page CITY OF NORTH MANKHTO 868 N.W.2d 1 (2015) Ethan DEAN, et al., Appellants, V. CITY OF WINONA, Respondent. No. A13-1028. Supreme Court of Minnesota. August 5, 2015. 2'2, Anthony B. Sanders, Lee U. McGrath, Institute for Justice, Minneapolis, MN; and Diana K. Simpson, Institute for Justice, Arlington, VA, for appellants. George C. Hoff, Shelley M. Ryan, Hoff, Barry & Kozar, P.A., Eden Prairie, MN, for respondent. Teresa Nelson, Saint Paul, MN, for amicus curiae American Civil Liberties Union of Minnesota. Erick G. Kaardal, Mohrman & Kaardal, P.A., Minneapolis, MN; and Daniel E. Frank, Sutherland Asbill & Brennan LLP, Washington, D.C., for amici curiae The Cato Institute and The Minnesota Free Market Institute at the Center of the American Experiment. Eileen M. Wells, City Attorney, Linda Boucher Hilligoss, Assistant City Attorney, 22Mankato, MN, for amicus curiae City of Mankato. Terry L. Adkins, City Attorney, Rochester Minnesota, for amicus curiae City of Rochester. Samuel J. Clark, City Attorney, Gerald T. Hendrickson, Deputy City Attorney, Saint Paul, MN, for amicus curiae City of Saint Paul. Susan L. Naughton, Saint Paul, MN, for amicus curiae League of Minnesota Cities. Bradley J. Boyd, Sarah B. Bennett, Christopher P. Renz, Thomsen & Nybeck, P.A., Bloomington, MN, for amicus curiae Minnesota Association of Realtors. Jarod M. Bona, Bona Law P.C., La Jolla, California; and Aaron R. Gott, Minneapolis, Minnesota, for amicus curiae Minnesota Vacation Rental Association. OPINION WRIGHT, Justice. Appellants Ethan Dean, Holly Richard, and Ted and Lauren Dzierzbicki brought this action, challenging a rental ordinance enacted by respondent City of Winona (the City). The ordinance, referred to as the "30 -percent rule," limits the number of lots on a block in certain areas of the City that are eligible for certification as rental properties. Appellants assert that the 30 -percent rule is a zoning law that exceeds the City's power authorized by Minn.Stat. § 462.357 (2014). Appellants also contend that the 30 -percent rule violates their rights to equal protection and substantive due process guaranteed by the Minnesota Constitution. On cross-motions for summary judgment, the district court granted summary judgment to the City. The court of appeals affirmed, concluding that the adoption of the ordinance was a valid exercise of the City's police power and that appellants did not meet their burden of establishing that the ordinance is unconstitutional. After we granted appellants' petition for review, the City moved to dismiss for lack of jurisdiction, asserting that the case had become moot while on appeal. We conclude that the challenge to the ordinance does not present a justiciable controversy because appellants no longer have an interest in the outcome of the litigation. We, therefore, decline to reach the merits of appellants' claims and dismiss the appeal. At the heart of this dispute is the City's policy limiting the number of rental licenses available to homeowners in Winona. The City requires its homeowners to obtain rental licenses before they are permitted to rent their properties to tenants. In 2005, the City enacted the 30 -percent rule, currently codified as Winona, Minn., Code § 33A.03 (2014), to regulate the density of rental properties in certain residential zones. The purpose of the rule, when enacted, was to decrease conversions from owner -occupied properties to rental properties, which, the City reasoned, would decrease crime and nuisance complaints and improve the quality of life in Winona. In residential zones subject to the 30 -percent rule, homeowners generally may not obtain rental licenses for their properties if more than 30 percent of the lots on that block already are licensed as rental properties. For example, on a 12 -property block subject to the rule, only four lots may be licensed as rental properties.m 4'4 Appellants sued the City in 2011 after each sought and was denied a standard rental license. Appellant Holly Richard purchased a house in Winona in December 2006. When she attempted to obtain a rental license in 2009, the City erroneously told her that no licenses were available for her block. After Richard filed the lawsuit, the City issued a standard rental license to her. Appellant Ethan Dean bought a house near Winona State University in 2006. He rented his house without a license after his job required him to work in Iraq in 2009. The City granted Dean a temporary, nontransferable rental license in 2010, but declined to issue a standard rental license. In November 2012, after failing to sell the home, Dean transferred it to Wells Fargo Bank by warranty deed to avoid foreclosure. Appellants Ted and Lauren Dzierzbicki purchased a house in 2007 near the university for their daughter and student renters to live in while attending college. After the Dzierzbickis learned that they could not rent the home as planned because of the 30 -percent rule, they put the house on the market in December 2009. The parties filed cross-motions for summary judgment in January 2013. In their cross- motion, appellants sought a declaratory judgment that the 30 -percent rule violates their equal -protection, procedural -due -process, and substantive -due -process rights under the Minnesota Constitution. Appellants also alleged that the ordinance exceeds the City's zoning power under Minn.Stat. § 462.357, Minnesota's zoning enabling statute. See id. (describing a municipality's authority for zoning and the limitations of that authority). Specifically, appellants claimed that the ordinance is unlawful under section 462.357 because it impermissibly regulates the ownership or occupancy of property, rather than the use of property. Appellants sought injunctive relief and nominal damages. The district court granted the City's motion for summary judgment in April 2013, concluding that the 30 - percent rule is not unconstitutional and that the City had authority to enact it. The court of appeals affirmed. Dean v. City of Winona, 843 N.W.2d 249, 263 (Minn.App.2014). The Dzierzbickis sold their house in March 2014, one month after the court of appeals issued its decision. At that time, the Dzierzbickis were the only appellants still seeking a rental license from the City. Appellants filed a petition for review, which we granted in May 2014. After we granted appellants' petition for review, the City moved to dismiss the appeal for lack of jurisdiction. We first consider the City's motion to dismiss. The City argues that dismissal is warranted because the case is not justiciable and nominal damages cannot be recovered under the Minnesota Constitution. Justiciability is an issue of law, which we review de novo. McCaughtry v. City of Red Wing, 808 N.W.2d 331, 337 (Minn.20111. In the context presented here, the jurisdictional question is one of mootness. See In re Schmidt, 443 N.W.2d 824, 826 (Minn. 1989) (observing that when we are unable to grant relief, the issue raised is deemed moot). The mootness doctrine is not a mechanical rule that is automatically invoked whenever the underlying dispute between the parties is settled or otherwise resolved. State v. Rud, 359 N.W.2d 573, 576 (Minn. 1984). Rather, it is a "flexible discretionary doctrine." Id. Mootness has been described as "'the doctrine of standing set in a time frame: The requisite personal interest that must exist 5=5 at the commencement of the litigation (standing) must continue throughout its existence (mootness)."' Friends of the Earth. Inc. v. Laidlaw Envtl. Servs. (TOC). Inc.. 528 U.S. 167, 189, 120 S.Ct. 693, 145 L.Ed.2d 610 2( 000) (citation omitted). An appeal should be dismissed as moot when a decision on the merits is no longer necessary or an award of effective relief is no longer possible. In re Minnegasco, 565 N.W.2d 706, 710 (Minn. 1997). Appellants acknowledge that they do not have a current interest in the litigation beyond their claim for nominal damages under the Minnesota Constitution and that their claims for declaratory and injunctive relief are moot. Nonetheless, they argue that we should apply two discretionary exceptions to our mootness doctrine. First, appellants maintain that the issues raised are capable of repetition, yet likely to evade review. See Kahn v. Griffin, 701 N.W.2d 815, 821 (Minn.2005). Second, appellants contend that this case is "functionally justiciable" and of "statewide significance." See Rud, 359 N.W.2d at 576. The City counters that neither exception applies. We address each argument in turn. A. We begin by considering the exception to the mootness doctrine for issues that are capable of repetition, yet evade review. This two-pronged exception applies to issues that are likely to reoccur, but also would continue to evade judicial review. Kahn, 701 N.W.2d at 821. These circumstances exist when there is a reasonable expectation that a complaining party would be subjected to the same action again and the duration of the challenged action is too short to be fully litigated before it ceases or expires. Id. This case does not meet the "evading -review" prong of the exception because the City's enforcement of the ordinance is ongoing. The constitutionality of the 30 -percent rule is not an issue that, by its character, is "too short to be fully litigated prior to its cessation or expiration." Id. (citation omitted); see State v. Brooks, 604 N.W.2d 345, 348 (Minn.2000) (noting that future defendants might have "no remedy" if the case were not decided because "[m]ost pretrial bail issues are, by definition, short-lived"). Traditionally, cases that have been found to evade review involve disputes of an inherently limited duration, such as prior restraints on speech, see Neb. Press Assn v. Stuart, 427 U.S. 539, 546-47, 96 S.Ct. 2791, 49 L.Ed.2d 683 (1976) (holding that a judge's order limiting the press's reports about a trial would escape judicial scrutiny because such orders would always expire before appellate review), and short-term mental-health confinement orders, see In re Blilie, 494 N.W.2d 877, 879-81 (Minn. 1993) (concluding that the issue of whether plaintiffs treatment by neuroleptic medication upon her guardian's consent was constitutional was capable of repetition yet evaded review because, although plaintiff had been discharged from state custody, she could again be subjected to 90 days of treatment with the medication if her guardian admitted her to a treatment center); State ex rel. Doe v. Madonna, 295 N.W.2d 356, 361 (Minn. 1980) (reviewing the constitutionality of three -day - hold orders for mentally ill appellants who were no longer subject to confinement at the time of their challenge). The time frame of this case makes clear that a challenge to the 30 -percent rule is not, by definition, "short-lived." Brooks, 604 N.W.2d at 348. The last of the property owners seeking a rental license here sold their property after the court of appeals' opinion was issued and shortly before we granted appellants' petition for further review. Appellants' case had been initiated three years earlier, a duration 6`6 that typically would provide ample time for judicial review. In fact, if appellants had pleaded additional claims or joined plaintiffs while their case was pending before the district court, this case may have reached us before becoming moot. Because there is nothing about this case that is of inherently limited duration, this dispute is not capable of repetition, yet evading review. :J We have the discretion to consider a case that is technically moot when the case is "functionally justiciable" and presents an important question of "statewide significance that should be decided immediately." Rud, 359 N.W.2d at 576. "A case is functionally justiciable if the record contains the raw material (including effective presentation of both sides of the issues raised) traditionally associated with effective judicial [decision-making]." Id. Although the record here is well-developed, this case does not present an urgent question of statewide significance. We apply this exception narrowly. In Rud, for example, the issue was whether defendants accused of sexual abuse of children should be allowed to call child witnesses and victims at a hearing on a motion to dismiss criminal charges. Id. at 575. The court of appeals held that defendants had a limited right to call the children as witnesses, depending on several factors. Id. at 577. After we granted the State's petition for further review, the State dismissed the charges. Id. at 576. We proceeded with the case, however, because "a failure to decide [the issues when presented] could have a continuing adverse impact in other criminal trials." Id. Had we not decided the substantive issue in Rud immediately, the court of appeals' holding, which was erroneous in light of our decision in State v. Florence, 306 Minn. 442, 239 N.W.2d 892 (1976), could have resulted in the broad use of probable cause hearings as "'a substitute for disclosure and discovery."' Rud, 359 N.W.2d at 578 (quotingFlorence. 306 Minn. at 450. 239 N.W.2d at 898). Other instances in which we have found cases to be functionally justiciable also involved matters of statewide significance. In Jasper v. Commissionerof Public Safety, for example, we concluded that the proper approval by the Commissioner of Public Safety of a breath - testing instrument for suspected impaired drivers was an issue of statewide significance because the model was "the only breath -testing instrument currently in use in this state and there [had] been substantial litigation in the district courts as to whether the instrument was properly approved." 642 N.W.2d 435, 439 (Minn.2002); see also Kahn, 701 N.W.2d at 823 (reaching the merits on a challenge to election procedures in Minneapolis because the procedures were similar to those used in other Minnesota cities, impacting almost 14 percent of the state's population). Similarly in Brooks, the issue of cash -only bail orders reached our court a second time within one year after we dismissed State v. Arens, 586 N.W.2d 131 (Minn. 1998), as moot. See 604 N.W.2d at 348. We reached the merits in Brooksbecause the failure to do so posed the risk of creating "a class of defendants with constitutional claims but no remedy." Id. Most recently, in In re Guardianship of Tschumy, we addressed whether a court-appointed guardian may consent to removing a ward from life support, even though the issue was technically moot because the ward's life-support systems had been disconnected as authorized by a district court order. 853 N.W.2d 728, 741 (Minn.2014) (plurality opinion). We reached the merits in part because the central issue, whether 7'7 a guardian needs prior court approval to consent to the removal of life-sustaining treatment, implicated the State's parens patriae power "to protect 'infants and other persons lacking the physical and mental capacity to protect themselves,"' id. at 740 (quoting In re Pratt, 219 Minn. 414, 422, 18 N.W.2d 147, 152 (1945)), and because more than 12,000 Minnesotans were wards under State supervision and a decision was needed to "clarify for the guardians and their wards the scope of the guardians' authority to make one of life's most fundamental decisions," id. This case does not present the urgency or significance that underpinned Jasper, Rud, and Tschumy. The decision of the court of appeals does not affect the efficiency and validity of criminal proceedings across the state, for example, nor do the issues presented involve a special area of law or vital "issues of life and natural death."Tschumy, 853 N.W.2d at 740 (plurality opinion). Moreover, there is no inherent limitation on the time available for appeal as there was for cash -only bail orders inBrooks, 604 N.W.2d at 348. In sum, this case does not present an issue that must "be decided immediately." Rud, 359 N.W.2d at 576. The right to rent one's property is an important property interest. But this case does not present the urgency and broad impact that were present in cases determined to be functionally justiciable and of statewide significance that required an immediate decision. Other municipalities impose rental limitations. However, they do not operate in an identical fashion.0 When, as here, the issues presented are limited to the homeowners of one municipality, the case does not present the urgency and impact that were present in other cases that we have found functionally justiciable and of statewide significance. Accordingly, we decline to apply this limited exception here. Appellants also maintain that this case is not moot because they seek nominal damages based on an implied cause of action under the Remedies Clause of the Minnesota ConstitutionlQJ See Minn. Const. art. I, § 8. Under this theory, appellants contend that the Remedies Clause provides an independent cause of action for constitutional violations.L41 Arguing that they seek 8`8 nominal damages under this cause of action, appellants contend that this case remains a live controversy. However, appellants raised their "implied cause of action" theory for the first time only after their appeal had reached our court. Appellants referenced the Remedies Clause in their second amended complaint as a jurisdictional basis for declaratory and injunctive relief, but they never advanced a claim or an argument for nominal damages at the district court founded on the Remedies Clause. Appellants' jurisdictional allegations tied only their claims for declaratory and injunctive relief to the Remedies Clause. "It is well established that where a plaintiff litigates his case on one theory only, he is precluded from asserting new theories on appeal." John W. Thomas Co. v. Carlson-LaVine. Inc.. 291 Minn. 29, 33, 189 N.W.2d 197, 200 (1971). In particular, the appellants did not plead a cause of action for nominal damages under the Remedies Clause in their complaint. The Minnesota Rules of Civil Procedure require that a civil complaint "contain a short and plain statement of the claim showing that the pleader is entitled to relief." Minn. R. Civ. P. 8.01. A complaint should put a "defendant on notice of the claims against him." Mumm v. Mornson, 708 N.W.2d 475, 481 (Minn.2006). Here, appellants pleaded constitutional claims of equal protection, substantive due process, and procedural due process, and made a statutory claim that the City exceeded its zoning authority. While appellants' prayer for relief included a generalized request for "nominal damages of $1.00 for violations of their constitutional rights," that request, untethered to a specific claim or constitutional provision, was not enough to implicate the Remedies Clause. In other words, it did not put respondents on notice of the cause of action for nominal damages under the Remedies Clause, which appellants now present to our court. Only on June 26, 2014, in response to respondent's motion to dismiss on mootness grounds before our court, did appellants advance the argument that their request for nominal damages presented an implied cause of action under the Remedies Clause of the Minnesota Constitution. That argument came too late. Amendments to pleadings, which "range from a simple clarification to a whole new theory of the case," Nw. Nat'l Bank of Minneapolis v. Shuster, 388 N.W.2d 370, 372 (Minn. 1986),generally must occur before the action has been placed on the trial calendar, unless the amending party is given leave to amend by the district court or the adverse party,see Minn. R. Civ. P. 15.01 (stating that a party may amend a pleading by leave of court, and amendments should be freely granted when justice so requires); see also Shuster, 388 N.W.2d at 372 ("[F]airness demands recognition of the right to respond and to raise any defense to the newly pleaded material without seeking the court's permission."). Therefore, we decline to consider appellants' Remedies Clause theory at this juncture. We do not reach constitutional claims unless required to do so. SeeBravton v. Pawlenty. 781 N.W.2d 357. 363 (Minn.2010). Under the facts and circumstances of this case, the alleged harm to appellants' interests has ceased. There is no live case or controversy regarding the 9`9 claims that appellants actually pleaded in their complaint. In short, this case is moot. We will not consider issues of constitutional interpretation in a case that we have no power to decide. IV. In conclusion, appellants' claims are moot. Because no exception to our mootness doctrine applies, we grant the City's motion to dismiss. Appeal dismissed. Concurring, ANDERSON and STRAS, JJ. Concurring, LILLEHAUG, J. ANDERSON, Justice (concurring). I concur in the result. STRAS, Justice (concurring). I join in the concurrence of Justice Anderson. LILLEHAUG, Justice (concurring). I agree that the case must be dismissed as moot. I join Parts I and II and the result of the opinion of the court, departing only from the analysis in Part III. Part III is premised on the majority's understanding that appellants now seek nominal damages based on an implied cause of action under the Remedies Clause. Based on this understanding, and because the Remedies Clause was not pleaded as a cause of action, the majority avoids the question of whether the prayer for nominal damages saves the case from mootness. As I understand appellants' position, they do not allege, and have never alleged, that their injury orwrong—their cause of action—is based on the Remedies Clause. Instead, I understand appellants to seek nominal damages as a remedy for alleged injury or wrong to their Minnesota constitutional rights of equal protection, substantive due process, and procedural due process. Analytically, then, we cannot avoid appellants' argument that, even if their three constitutional claims otherwise have been mooted—making equitable and declaratory relief unavailable—the case lives on because they prayed for "nominal damages of $1.00."LL Their novel theory is that the Remedies Clause requires the availability of a nominal damages remedy. I disagree. Appellants have not drawn to our attention any Remedies Clause precedent that resuscitates an otherwise moot case, and I am aware of none. And I see nothing in the Remedies Clause as commanding (at least in the absence of implementing legislation) that the judicial remedy of purely nominal damages be available against a municipality. This is not a situation where appellants had no remedy whatsoever. Equitable and declaratory relief, which appellants sought in their prayer for relief, were available. Such relief became unavailable because of appellants' own strategic litigation choices. At no point did appellants seek to amend their complaint to add plaintiffs with live claims. Nor did appellants seek expedited relief. Minnesota procedure provides for temporary remedies such as restraining orders and injunctions, see Minn. R. Civ. P. 65, and declaratory relief, which, "liberally construed and administered" under Minn.Stat. § 555.12 (2014), may be secured by "speedy hearing," Minn. R. Civ. P. 57. 10'10 Nor did appellants invoke Minnesota's constitutional and statutory remedies for the municipal taking, destruction, or damage of private property. See Minn. Const., art. I, § 13 ("Private property shall not be taken, destroyed or damaged for public use without just compensation therefor, first paid or secured."); Minn. Stat. ch. 117 (2014) (governing eminent domain); Weqner v. Milwaukee Mut. Ins. Co., 479 N.W.2d 38, 42 (Minn. 1991) ("Once a 'taking' is found, compensation is required by operation of law"). Nor did appellants seek compensation for actual damages; rather, they sued only the municipality. See Thiede v. Town of Scandia Valley, 217 Minn. 218, 231-33, 14 N.W.2d 400, 408-09 (1944) (damages awarded against individual defendants for eviction in violation of Minnesota Constitution, but, "in the absence of statute," township had no liability for damages). Nor did appellants plead any federal constitutional claim, whether under 42 U.S.C. § 1983 (2012) or otherwise. See Carey v. Piphus, 435 U.S. 247, 266-67, 98 S.Ct. 1042, 55 L.Ed.2d 252 (1978) (nominal damages available under section 1983). As Part III notes, we do not reach the merits of constitutional claims unless we are required to do so. See Brayton v. Pawlenty. 781 N.W.2d 357. 363 (Minn. 2010). In the circumstances of this case, the Remedies Clause does not require that we reach the merits. f11 An exception exists for blocks in which more than 30 percent of the properties were licensed as rental properties before the rule took effect in 2005. Winona, Minn., Code § 33A.03(i)(i). Homeowners who had rental licenses before the 30 -percent rule was enacted may continue to renew those licenses, even if the percentage of rental property on their blocks is above 30 percent. Id. [21 At least three other municipalities have enacted similar percentage -based rental ordinances with varying limitations on rental property. See, e.g., Mankato, Minn., Code § 5.42, subd. 20 (2014) (requiring additional procedures for new owners of an already licensed property to maintain a rental license and imposing a 25 -percent rental cap), Northfield, Minn., Code § 14-97 (2015) (requiring additional procedures for a new owner of an already licensed property to obtain a new license and imposing a 20 -percent rental cap), W. Saint Paul, Minn., Code, § 435.05, subd. 11 (2014) (disallowing the transfer of licenses to new owners and imposing a 10 -percent rental cap). Additionally, the circumstances under which these ordinances were enacted vary and, when challenged, require independent consideration by a district court. [31 The text of the Remedies Clause provides: Every person is entitled to a certain remedy in the laws for all injuries or wrongs which he may receive to his person, property or character, and to obtain justice freely and without purchase, completely and without denial, promptly and without delay, conformable to the laws. Minn. Const. art. I, § 8. L41 In two section headings of their response to the City's motion to dismiss, appellants explicitly state that they seek a private cause of action under the Remedies Clause. Appellants also argue that "the Minnesota Constitution, through its Remedies Clause, provides a cause of action for constitutional torts by which [appellants] are entitled to nominal damages," and state that the "Remedies Clause protects rights ... by providing an independent basis for seeking relief, i.e., a private cause of action." Clearly, appellants are requesting that we recognize a private cause of action under the Remedies Clause. Contrary to the concurrence's characterization, this is not merely our "understanding" of appellants' position—rather, it is the express argument that appellants make multiple times in their response to the City's motion to dismiss. f 11 Nominal damages are "[a] trifling sum awarded when a legal injury is suffered but there is no substantial loss or injury to be compensated." Black's Law Dictionary473 (10th ed.2014). E. North Mankato Police Department's 2015 Year End Report CITY OF NORTH MANKATO 391 Page North Mankato Police Department 2015 Year End Report Table of Contents General Information......................................................... 2 Statistics at a Glance.........................................................3 Personal Crime Statistics................................................4 Property Crime Statistics..............................................5-6 Other Crime Statistics...................................................... 7 Juvenile Status Statistics ................................................. 7 Traffic Related Statistics ........................................... 540 Neighborhood Support Statistics ............................1143 North Mankato Police Reserves...................................14 -1- General Information North Mankato Police Department 1001 Belgrade Avenue P.O. Box 2055 North Mankato, MN 56002-2055 Emergency Number: 911 Non -Emergency Dispatch Number: (507) 931-1570 Office Number: (507) 625-4141 Email: nmpd@nmpd.ora Tip Information Email: tips@nmpd.ora The City of North Mankato Code of Ordinances Access: http://www.amlegal.conVnorthmankato mn/ Court Records Access: http://pa.courts.state.mn.us/default.aspx. 2015 Police Reports ■ Property ■ Personal ❑ Traffic ■ Other Crimes ■ Juvenile Offenses 0 Neighborhood Support ip 2015 Statisfies at a Glance -s Personal Crimes 2015 2014 2013 Homicide (includes attempts) 0 0 0 Terroristic Threats S 16 12 Criminal Sexual Conduct 11 14 8 Robbery 1 3 2 Assault 17 31 40 Domestic Assault 38 48 41 Harassment 17 35 27 Harassing Communications 35 48 36 ChildNulnerable Adult Protection 197 239 247 Domestic Disturbance 92 82 80 Disorderly Conduct 31 32 17 All other reports 40 41 31 Total Personal Crime Reports 470 589 541 Property Crimes 2015 2014 2013 Residential Burglaries 22 28 42 Non -Residential Burglaries 13 16 23 Theft from Building 53 43 54 Theft from Vehicle 45 66 53 Motor Vehicle Theft 6 14 15 Motor Vehicle Tampering 12 19 7 Financial Theft 40 47 28 Shoplifting 2 7 4 Property Damage 86 86 97 Arson / Negligent Fires 8 3 5 Trespassing 24 12 11 All other reports 71 103 81 Total Property Crime Reports 382 444 420 Other Crimes 2015 2014 2013 Narcotics 43 33 34 Underage Consumption 6 3 9 Weapons 11 7 8 Liquor Violations 7 8 2 All other reports 48 41 25 Total Other Crime Reports 115 92 78 Juvenile Offenses 2015 2014 2013 Alcohol 4 3 1 Runaways 28 15 16 Curfew 9 4 1 Tobacco 3 1 0 All Other reports 2 5 3 Total Juvenile Offense Reports 46 28 21 Traffic Related 2015 2014 2013 Accident Reports on Public Property 173 167 138 Accident Reports on Private Property 47 53 58 Bicycle Accidents (No Motor Vehicle) 3 4 1 Driving Under the Influence 48 36 25 Parking Violations SS 37 28 Violation Road & Driving Complaints 158 53 59 Total Traffic Related Reports 517 350 309 Neighborhood Support 2015 2014 2013 Medicals 401 382 383 Animal Control 220 153 155 Public Assists 186 93 97 Suspicious Activity 177 66 121 Assist Other Law Enforcement Agencies 281 105 123 Gun Purchase Permits Applications 151 123 168 Information Only 75 42 45 Civil Complaints 129 86 86 Alarm Calls 119 89 81 Welfare Checks 100 78 58 Residence Checks 102 45 54 Funeral Escorts 12 16 23 All other reports 482 347 342 Total Neighborhood Support Reports 2,435 1,625 1,736 The North Mankato Police Department takes all reports very seriously and diligently investigates each report. TOTAL REPORTS 4,600 3,128 3,105 -3- Personal Crime Statistics Type of Complaint 2015 2014 2013 Homicide 0 0 0 Attempted Homicide 0 0 0 Robbery 1 3 2 Criminal Sexual Conduct 11 14 8 Terroristic Threats 8 16 12 Assault 16 30 37 Assault/Domestic Assault with a Deadly Weapon 3 3 6 Domestic Assault 36 46 38 Bomb Threat 0 1 0 Child Protection 183 221 231 Vulnerable Adult Protection 14 18 16 Domestic Disturbance 92 82 80 Obscenity 2 4 1 Indecent Exposure 0 3 3 Peeping Tom 1 2 0 Kidnapping/Abduction/False Imprisonment 0 1 0 Disorderly Conduct 31 32 17 Harassment 17 35 27 Harassing Communications 35 48 36 Violation Court Order / Order for Protection 20 30 27 TOTAL PERSONAL CRIME CALLS: 470 589 541 "The title obscenity replaces the title of pornography from the 2014 and 2013 year-end reports. -4- Pro-Derty Crime Statistics Type of Complaint 2015 2014 2013 Arson / Negligent Fires 8 3 5 Burglary Residence 22 28 42 Burglary Non -residence 13 16 23 Financial Theft Fraud/Identity Theft 16 9 8 Forgery/Counterfeiting 4 12 1 Theft by Check 1 0 1 Credit Card Fraud 18 25 16 Fraud/NSF Checks 1 1 2 Property Damage Business Damage 4 8 6 Private Damage 65 71 83 Public Damage 17 7 8 Property Theft Theft of Motor Vehicle 6 14 15 Theft of ATV/MC/Moped 1 1 1 Theft of Trailers/Snowmobile/Boat 0 1 1 Tamper with Motor Vehicle 12 19 7 Theft from Building 53 43 54 Theft from Yard 19 21 21 Theft from Motor Vehicle 45 66 53 Theft from Boat 1 5 2 Theft from Coin Machine 0 3 0 Theft of Self -Serve Gas 9 20 16 Shoplifting 2 7 4 Bicycle Theft 16 23 31 Theft of Mail 1 1 0 Theft of Services 6 4 3 Theft by Swindle/Scam 17 21 5 Possession of Stolen Property 1 4 1 Trespassing/Prowlers 24 12 11 TOTAL PROPERTY CRIME CALLS: 382 444 420 -5- The North Mankato Police Department had 6 vehicles stolen in 2015. After investigation, two vehicles still remain missing; one was unlocked with the keys inside and one was stolen during a test drive. Four vehicles were recovered. One vehicle was parked on private property and towed by the property owner, one was stolen by a family member, two were recovered in another jurisdiction. The Police Department encourages residents to keep valuables out of sight and secure their homes, garages, and motor vehicles at all times. Any suspicious activity should be reported immediately by calling 24% 26% 9-1-1 or the non -emergency dispatch number (507) 931-1570. Z�_� 30 25 20 15 10 5 0 Theft/Burglary Report Comparison Home Burglaries Theft from Vehicles Vehicle Thefts ■ Locked ■ Unlocked ❑ Unknown (No Forced Entry) 50% -6- Other Crime Statistics Type of Complaint 2015 2014 2013 Fleeing Police 3 7 2 False Information to Police 3 4 3 Illegal Kennel 0 0 1 Impersonating a Police Officer 0 0 1 Narcotics 43 33 34 Obstructing Legal Process 0 3 1 Public Nuisance 26 16 11 Underage Consumption of Alcohol (18 — 21 years) 6 3 9 Liquor Hours of Sale 5 4 2 Liquor Furnishing to Minors 0 1 0 Liquor Possession 2 3 0 Littering 10 8 3 Fireworks Discharge/Possession 6 3 3 Weapons Violations 11 7 8 TOTAL OTHER CRIME CALLS: 115 92 78 Juvenile Status Statistics plaint Type:Consumption 2015 2014 2013 Curfews 9 4 1 Incorrignile 1 3 3 Runaw 28 15 16 Truanc 1 2 0 Underaion of Alcohol (Under 18) 4 3 1Underao Possession/Use 3 1 0TOTAILE STATUS OFFENSES: 46 28 21 -7- Traffic Related Statistics raffic Related Statistics 2015 2014 2013hicle Accident Reports 220 220 196 ng on Public Property 173 167 138 ing on Private Property 47 53 58 ccidents (No Motor Vehicle Involvement) E 3 4 1 hile Under the Influence 48 36 25 s Road &Driving Complaints 158 53 59 iolations/Complaints 88 37 28 TRAFFIC RELATED CALLS: 517 350 309 - 8 - 3u Motor Vehicle Accident Iniury/Fatality Breakdown 25 20 15 10 5 0 curring on7'u1)1-1c—f—r-6j—)e--r7 7- JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC ■ Fatality 0 0 0 0 0 0 0 0 0 0 0 0 ❑Serious Injury 0 1 0 0 0 0 0 1 1 0 1 0 ■Injury 4 4 0 3 1 2 3 0 1 0 4 3 ■No Injury 14 23 4 9 12 2 12 10 15 9 17 17 - 8 - ff Motor Vehicle Accidents ]173ing an Under the Influence Driverstriane Motor Vehicle Accidents Breakdown (Ocurring on Public Property) JifV DEC r❑Property Damage (Under $1,000) ■Property Damage (Over $1,000) -9- _ -qq Traffic Citations Violation 2015 2014 2013 Careless/Exhibition/Reckless Driving 12 11 4 Child Restraint 1 1 0 Driver's License Violation 32 19 23 Driving After Revocation/Cancellation/Suspension of License 91 42 38 Driving While Intoxicated 63 49 31 Equipment Violation 1 8 1 Failure to Yield Right of Way 6 12 13 Fail to Use Due Care 14 12 5 Improper Registration 17 26 8 Leaving the Scene of Accident 5 6 2 No Insurance/No Proof of Insurance 99 52 62 Open Bottle/Allow Open Bottle 5 4 2 Parking Tickets 74 90 47 Seatbelt 81 93 121 Speeding 98 108 90 Semaphore/Stop Sign Violation 33 24 21 All Other Violations 3 4 16 Total: 635 561 484 M rhood Support Statistics Type of Complaint 2015 2014 2013 911 Verifications 65 11 20 Alarm Calls 119 89 81 Animal Control Animal Complaints 209 144 140 Animal Bites 11 9 15 Assist Other Law Enforcement Agencies 281 105 123 Civil Complaints 129 86 86 Fire Calls 67 54 43 Found Property 67 69 60 Funeral Escorts 12 16 23 Gun Purchase Permits Applications 151 123 168 Information Only 75 42 45 Lost Property 33 12 10 Medicals Sick Cared For 287 252 267 Home Accidents 50 72 60 Occupational Accidents 4 3 7 Public Accidents 6 8 3 Intoxicated Individuals 54 47 46 Mentally Ill Persons 26 28 22 Missing Persons 14 8 7 Neighborhood Problems 12 15 25 Noise Complaints 70 72 48 Open Door/Window 19 5 4 Public Assists Motorist Assist 52 14 16 Public Education 24 16 18 All Other Public Assists 109 63 63 Residence Checks/Extra Patrol Requests 102 45 54 Predatory Offender Notification/Total Predatory Offenders 23 22/16 23/34 Solicitors/Scam Complaints 23 2 2 Sudden Death 14 15 13 Suicides 1 1 1 Suicides Attempts 16 12 11 Suicide Threats 33 27 42 Suspicious Activity 177 66 121 Welfare Checks 100 78 58 TOTAL NEIGHBORHOOD SUPPORT CALLS: 2,435 1,625 1,736 -**The speed trailer was retired in 2014. Speed trailer reports from the 2013 year-end reports have been added to the all other public assist category. The North Mankato Police Department prides itself in providing superior law enforcement services to the community. Some of the ways that this is done is through neighborhood support activities such as but not limited to mediation collection, animal control and public education. Medication Collection In 2015, the North Mankato Police Department installed a medication disposal box in the lobby of the Police Department and properly disposed of 349 pounds of medicine to protect human health and the environment. Animal Control The North Mankato Patrol Officers are responsible for responding to all animal control issues. This includes animals at -large, animal abuse/neglect, and animals disturbing the peace. In 2015, the North Mankato Police Department responded to 209 animal related reports and impounded 99 animals compared to 83 impoundments in 2014 for a cost of $3,813.40 compared to $2,761.84 in 2014. [207 pound Breakdown 60 ■ Dns ❑Cat Adopted Euthanized Owner The City of North Mankato maintains an Impound Agreement with Premier Veterinary Center of Mankato. -12- Public Education The North Mankato Police Department conducted the following public education in 2015: DATE LOCATION TOPIC OFFICER ATTENDANCE 1/19 Good Shepherd Church Race Relations 701 30 1/20 Mankato Clinic Sexual Assault Training for Nurses 710 20 2/10 Belgrade Methodist Church Law Enforcement for Cub Scouts 704 6 2/27 Garfield Elementary Making Positive Decisions 710 275 4/17 Crossview Covenant Church Public Safety for Tapestry 710/711 30 4/23 Hoover Elementary Severe Weather 715 77 4/23 Monroe Elementary Severe Weather 715 80 5/7 Children's Museum Bike Safety 801/802/820 100 5/12 Mankato Civic Center Emergency Management and Senior Safety for Senior Expo 701 200 5/15 Crossview Covenant Church Tapestry Graduation 701/710/711 20 6/15 Taylor Library Read with a Hero 706 15 6/22 Safety Camp at Fire Station Personal Safety 706 25 7/8 Police Department Daycare Police Department Tour 700/712 15 8/4 North Mankato Neighborhoods Night to Unite 706/703/701 100 10/25 Nicollet County ATV Safety 704 12 10/30 South Central College Domestic Violence 716 40 11/3 Best Western Human Trafficking 710 60 11/10 Mayo Clinic Health System Sexual Assault Training for Nurses 710 13 11/12 Monroe Elementary Winter Safety 715 100 11/12 Hoover Elementary Winter Safety 715 95 11/19 Girl Scouts/Nicollet Female Police Officer 709 7 12/18 Police Department Boy Scouts Police Department Tour 704 30 12/18 Lincoln School Tapestry Graduation 701 24 12/30 Mayo Clinic Health System Sexual Assault Training for Nurses 710 10 2015 Total Public Education: 24 2014 Total Public Education: 16 lk oti - ati -13- North Mankato Police Reserves FOR THE YEAR ENDING DECEMBER 31, 2015 The North Mankato Police Department has a long history of having a reserve program. The Special Police Reserve Unit was established during the Minnesota River Floods of April of 1965. The Special Police were formed to patrol the City to secure the homes and businesses. The dikes were patrolled and inspected and assistance was given to many volunteers who helped build and maintain the dikes. First aid, meals, and transportation were also provided by the Reserves. The Reserve unit was made permanent in the fall of 1965 and training was established for traffic control along with crowd control. North Mankato Fun Days and other events were provided with policing to supplement the regular police force. Today, our reserve officers are still a volunteer position with the City of North Mankato. Reserve officers provide the City with traffic and crowd control during the many parades and races held throughout the year. All of our reserve officers have other employment and we are very grateful for the time and service they provide us. We currently have 15 Reserve Officers dedicated to the community. These Reserve Officers collectively volunteered over 1,200 hours this past year. In 2015, The North Mankato Police Reserves assisted the community with a variety of events including but not limited to the following; North Mankato Fun Days, Fun Days Triathlon, Kiwanis Holiday Lights, MCHS Bike -14- Safety Rally, Taylor Library Fun Run, Gorilla Run, A.B.A.T.E Parade, Movies in the Park, Bier of Belgrade, Girls State Softball Tournament, Mankato Marathon, Blues of Belgrade and YMCA Fun Run. -15- E.1 North Mankato Police Department: Distribution of Police Calls CITY OF NORTH MANKATO 401 Page 2010 Types of Police Cal Is (# of Properties: 3,656) Juvenile Offense 6 2 560.50 153.50 Neighborhood Support 468 118 7.19 2.60 Other Crimes 28 7 120.11 43.86 Personal Crime 102 43 32.97 7.14 Property Crime 112 31 30.03 9.90 Traffic Related 12 3 280.25 102.33 Uncategorized 10 3 336.30 102.33 2011 Types of Police Calls (# of Properties: 3,675) Juvenile Offense 6 2 563.33 154.5 Neighborhood Support 512 98 6.60 3.15 Other Crimes 50 7 67.60 44.14 Personal Crime 105 46 32.19 6.72 Property Crime 197 32 17.16 9.66 Traffic Related 17 0 198.82 0.00 Uncategorized 13 3 260.00 103.00 2012 Types of Police Calls (# of Properties: 3,707) Juvenile Offense 6 3 568.67 103.00 Neighborhood Support 505 101 6.76 3.06 Other Crimes 20 10 170.60 30.90 Personal Crime 121 31 28.20 9.97 Property Crime 126 28 27.08 11.04 Traffic Related 11 6 310.18 51.50 Uncategorized 12 2 284.33 154.50 2013 Types of Police Calls (# of Properties: 3,739) Juvenile Offense 9 3 382.22 104.33 Neighborhood Support 518 113 6.64 2.77 Other Crimes 49 14 70.20 22.36 Personal Crime 114 62 30.18 5.05 Property Crime 130 31 26.46 10.10 Traffic Related 14 4 245.71 78.25 Uncategorized 23 2 149.57 156.50 2014 Types of Police Calls (# of Properties: 3,743) Juvenile Offense 6 3 574.00 104.33 Neighborhood Support 454 112 7.59 2.79 Other Crimes 44 25 78.27 12.52 Personal Crime 121 53 28.46 5.91 Property Crime 159 36 21.66 8.69 Traffic Related 18 2 191.33 156.50 Uncategorized 25 1 137.76 313.00 -Ratio of Police Call occurrences per property. In 2010, for example, there were six Juvenile Offenses that occurred among 3,656 properties. This is a ratio of 6:3,656 or 1:558.8. There was one occurrence for every 558.8 properties in Single-Family:Owne r Occupied vs. one occurrence for every 151.5 Renter Occupied Units. 2010 Types of Police Calls (it of Properties: 3,656) Juvenile Offense 4 0 538.00 0.00 Neighborhood Support 233 15 9.24 5,13 Gtre-C-nes _2 0 -79,33 0,00 Pe sera C--ne 50 4 43.04 _9,25 C--ne 56 5 38.43 5.40 T-aff i R.e ated 4 0 538.00 0.00 Ugeat-¢crized 1 0 2152.00 0.00 2011 Types of Police Calls (k of Properties: 3,675) Juvenile Offense 4 0 542.00 0.00 Neighborhood Support 254 10 8.54 7,90 Gtre-C- lies 28 1 '7.43 79,00 Pr5713 ire 46 6 47.5 13,17 P-cae-tvC--ne 116 8 _8.69 9.88 Traffic Related 10 0 216.80 0.00 Uncategorized 6 1 361.33 79.00 2012 Types of Police Calls (K of Properties: 3,707) Juvenile Offense 0 1 0.00 79.00 Neighborhood Support 271 8 8.11 9.88 Other Crimes. 7 3 314.00 26.33 Personal Crime 47 3 46.77 26.33 Property Crime 58 3 37.90 26.33 Traffic Related 6 0 366.33 0.00 Uncategorized 2 0 1099.00 0.00 2013 Types of Police Calls (K of Properties: 3,739) 1 j ey'''e Offense 2 1 1112.50 83.00 Nelg�-,c=Dd S.ioport 270 19 8.24 4.37 Gt�e gres 20 2 111.25 41.50 Pe sera C--ne 45 4 49.44 20.75 Pcae-t:C--ne 52 4 42.79 20.75 Tiaff,c Re,ated 4 1 556.25 83.00 Uncategorized 8 0 278.13 0.00 2014 Types of Police Calls (K of Properties: 3,743) Juvenile Offense 1 0 2229.00 0.00 Neighborhood Support 216 14 10.32 5.93 Other Crimes 18 5 123.83 16.60 Personal Crime 51 7 43.71 11.86 Property Crime 78 4 28.58 2075 Traffic Related 6 0 371.50 0.00 Uncategorized 5 0 445.80 0.00 2010 Types of Police Cal Is (# of Properties: 3,656) Juveni le Offense 2 2 605.50 115.00 Neighborhood Support 235 103 5.15 2.23 Other Crimes 16 7 75.69 32.86 Personal Crime 52 39 23.29 5.90 Property Crime 56 26 21.63 8.85 Traffic Related 8 3 151.38 76.67 Uncategorized 9 3 134.56 76.67 2011 Types of Pol ice Calls [# of Properties: 3,675) Juveni le Offense 2 2 606.00 115.00 Neighborhood Support 258 88 4.70 2.61 Other Crimes 22 6 55.09 38.33 Personal Crime 59 40 20.54 5.75 Property Crime 81 24 14.96 9.58 Traffic Related 7 0 173.14 0.00 Uncategorized 7 2 173.14 115.00 2012 Types of Pol ice Calls (#of Properties: 3,707) Juveni le Offense 6 2 202.33 115.00 Neighborhood Support 234 93 5.19 2.47 Other Crimes 13 7 93.38 32.86 Personal Crime 74 28 16.41 8.21 Property Crime 68 25 17.85 9.20 Traffic Related 5 6 242.80 38.33 Uncategorized 10 2 121.40 115.00 2013 Types of Pol ice Calls (#of Properties: 3,739) Juveni le Offense 7 2 173.57 115.00 Neighborhood Support 248 94 4.90 2.45 Other Crimes 29 12 41.90 19.17 Personal Crime 69 58 17.61 3.97 Property Crime 78 27 15.58 8.52 Traffic Related 10 3 121.50 76.67 Uncategorized 15 2 81.00 115.00 2014 Types of Pol ice Calls (# of Properties: 3,743) Juveni le Offense 5 3 243.00 76.67 Neighborhood Support 238 98 5.11 2.35 Other Crimes 26 20 46.73 11.50 Personal Crime 70 46 17.36 5.00 Property Crime 81 32 15.00 7.19 Traffic Related 12 2 101.25 115.00 Uncategorized 20 1 60.75 230.00 Cha dggplaaut dEario6Peark'smMs ®� Hoisington Koeglar Group Inc. To: Winona qty Cotard, Planning Commission and aty staff From: MorkKoeglerstdJeffMNiv(HKGq trate: Februery2l,2012 net Whhork Rental Flouring Restriction Ordloance—UteratureReview & Data Analysis Findings Hoisington Koagier Group Inc. (HKGq has conducted a literature review refating to rental housing concentration and Its negative Impacts on neighborhood quality and li abldty. Thi Ittowtere review Included rental houdreg i relationship with buraased nuisance complaints, Increased police Inddeets, daaaaed propatty maintenance lmmk deeressed homeawaenhlp lavab, and decreased property vWum, Although there Is a substantial amount of Iterah a that addrav s rental housing hem% much of the Rterattlre does hent contain emptrkd arafysh. Through our Rtersbare review, we were Ale to Idargy emPhUd stales of 40 ckla that have faced rental housing issues that are mWant to v imm Based upon Our findings from the Rtemture revlow, HKGI then complied and analyzed dataked data related to WhvvWs rental housing conoentnalon leveh and Rs relaticambip to mrkaeca and potra violation. eased on Our findings from the itarsturo review and dty-level empirical studies that mthance and Pence VlohHats are hey Indicators of ndghborhood quality and livablpgy, we focused our data analysis on the relatlonsidps between oorrceaatrated rental housing and nolance/poRre violations In Winona. Thi memo suarmaaisas our literature raview and data ani" fie kW& I. ilteran Ravlawed L Cnlg Rabom, "CopbK With Cokeges: How Communities Address the Problems of Students Uving 0(f4CAmpta56" IOrkra News (May 2002). L Duncan Associate% NAttatysb of Issues Regarding Student Housing Near the UnKrerdly of Ploddae Apd12WZ 3. Jack S. FdesOl -Mw Are toed Governments Responding to Student Rental Problems in Unlvers@y Teams In the Unhed States, Canada, and Eng1110W fdeotkia Jchormf o/ kantaftarl and CW"mdh8lar8vb ter200.5(. C John JamnaaL Me Corse of Student HousNs: Evident. frau Woirvlge, Naw ScaW 2010, S. Ko Wang, Terry V. GAE01 , James R Webb and Lewis Spe&nary ^The Impact of Rental Properties on the Value of Singie-Famlly Resmenow Journal of Urban Economics, 1991. S. Maya's Commission on Housing & Home Ownership, "Pralmotian ofName ownership in the qty of li fthamtonl A Report of the Mayors Commlsalon on Houft and Hann Ownerddp,"2008. 7. Nisi Pindell, "Home Sweet Hamel The Efficacy of Renu RegrIctlons to promote Neighborhood Sn61QY,"Selw/ary Wbrf�t{Pspaorb7), 20�. It. Terence J. Repiann, "Rental Housing and Crime: Ths Role of Property Ownership and Management," The Annals of Regional Science (A3), 2009. 9. Sege Policy Group, `Thee it e Rationed Bads for Rent Steblitzatlon In College Pall, Meryknd," April 2ML Page 2 of 10 10. Saga Policy Group, "There Remains a national Basis for Rent Srobllleetton in Cogege park, Maryland,' August 2009. 19, State College Borough Staff,'Sustalnable Neighborhoods in State College Boroush," June B, 2009, 12. West Urbana Neighborhood Assodatica, "What Other College Communities Have Dane: Wraples Of Regulatory Actions to Preserve the Slngle-FmNy Residential Character of a Campus Neighborhood; Janwry2005. 13. WIINmn M. Rohe and 1.23116- S. Stewart, "Homeownership and Neighborhoad Stability,' Housing Policy Debate (Volume 7, Issue 1), ]996. 14. Farley v. Zoning Hearing Board of Iowa Marlon Township, 094. IS. Lamas V. Zoning Hearing Board of Heverford Towns*, 19%. H. lasues with Concentration/ Density of Remi Housing In SMgl +MWIy Nelghberhoods Regulating the concentration or density, of rental housing in singla-tamiy residential neighborhoods is ■ partImlar Issue that the City of Winona Is addressing with Its 30% Limit of rental housing propenes per blo& SsedRrally, the City's low end aedlum density residential mning districts allow real units as a permitted use but limp the number of residentially -zoned lots on any block that can obtain ramal housing rxnBication to a mapdmum of 3036. According to My Planning pommission Meeting Minutes, the Parking Tait Force concluded that housing density, property mahttenence, off-street perking and deteriorating residential community character were mejw problems °resu ft from the extensive number of homes which have ben converted to ramal purposes"' In some areas of the community. Based an this finding, the task force proposed to establish a Ilmitotfon or the number of rental houses that could be concentrated within each black wRhln all residertttal zoningdistrIm, with the exception of the Ra zoning dM t. The literature review supporta the CRys concerns with an over600ncentmtkm of rental houses In single• family resldenttel neighborhoods. Many universBy towns face the problem of large numbers of single• family houses being converted to rental houses In sfngio-famly redhntM nelghborleods, tttaraby, treating a high canceMretion of student rental houses within shngk4an* msktenHsf nelghbodnads. The literature revletvad supports the argument that oveticomentratlons at remel houses have negative Impacts on surrounding residential properties and nelghbothoods In general, including noise, insseesed traffie, fitter, (legal parking, Inadequate property malntemnc% and a general decrease h the quality of INe for permanent residents of the n*hborhoodPTho tvplcalyfail ka titree primary eetegorks. • Increased nutsence and property malme Laos complaints, • Increased City Code vialadons and police dtetkms, • deceased property values. Thus, the Impacig are physical, economic and soeal, ultimo* contributing to decreases In the quality and AnbHtyof nelghborhoods. sggr ofwina a Pbuming commission MaeNog Minutes, Oetaber24, 20 S:- S. 'Jai& Hlerso%'Haw Are lots) Gmwnments RespeadongtoStudett Renal Problemshn UnlversayTowns In the UnkedSb1z%,Cmada,3ndEfi21QR"6tarpklawnaiofa+tematlbnatamdtarrypororhrLewtWimer20Qly 1. Paget of 10 In pcnaral, the studies found that rental residemfs( properties, particularly, rental slagie-famlly homes, era generally malnWmd at a lower level than awnm amupled houses. Property maintenance Issues often include building repairs, yard cue, and snaw removal, The "Homeownership and Neighborhood Stability' art7de rites several studies that show °that homeowners are mora likely than landlords to undertake repairs and that they spend more an them.°' This same article aim asserts that awrm%ozapled !rousing units aro generally maintained at a higher level because homeowners, unlike landlords and renters, possess both an economic and use Interest in their homes. °The Impact of Rental Properties on the Value of Single- Familir Residences" ardds cites several studies that have empirically demonstrated this situation. Inadequate property maintenance Issues often mauR br Increased levels of nuisance complaints and qty Code violstlons, as well as decreases In property values of nearby housing. Several studies (Wang, et ai; Rahe & Stearark lanmaat, Pltde.Q contain empirical analysas that Raked higher concentrations of rectal houses to decreases In nearby property values. The roast direct study of these reviewed Misting to InWactson prop" vskmwas "the Impact of Renal Properties on the Value of Siete-Family Residences" sWdy, which concluded that 'an Rnnerass relationship exists between the value of a house and tha presence of rental properties In the study area."4 This study analyzed data from 23,119 sirtle-family reddames and 1,162 single-family mks In Sen Mthnin (M. Mother study found that "after controlling for housing stock characteristics, household characteristics, end MSA4evel economic factors, a 5•pvaenUge-point chow linrr atel in the lomeownership rate of at tract waWd be associated with about a $4AW increase in merlin shingle-femuy property value over a 10j"r period of *M's A subsequent impact of decreased property values is the decrease in property tan revenues for the my, County and other taxinghandictkms, Several shulles (Sage Policy Group, Rephann, Duncan Associates; Mate Cope Borough) contain emptdeal analyses that link the cantantratlan of mnW houses to increases In nuisance compWnts, City code vloiatimhs, sad cftm Incidents, Nuisances typically Include yard case (e.3. weed controi, gross sorting), snow m oval. refuse, Illegal Parking, noise, disorderly cossduct, ftwr and over -occupancy. Section III of this memo describes the emphical analyses Inking the concentration of rend houses with nuisance complaints and My Code violations in five cities. Nuisance complahrts, code violations and crime Incidents are key indicators of a neighborhood's Rvablilty, and residents' sansfadion with their neighborhood. The iRarsture mAewed Indicates Increased InsldINIM of nulsancea, code violations and cruets in renter- aaupled houses versus owner-oowpled houses A subsequent (rapaet of Increased contomInts, violations and crime Incidents Is the additional meta Incurred by a city to observe, address and process therts '1Nlahah M. Rohe and LesReSSsswart, "gomeowners* and Neighborhood Strbalty,' H&Xng Policy paters J"rne 7, Iava 11.1996; 4L Kc Wend, Terry V. Grissom lures R. Webb and Lm&Spdman, Me Impad of Rental Properties an the Value of Stogie -Family Reskteftew Joaralof Urbo Fmmwhria, Votuma aa, Issue 2 (1991): 764. ' William M. Rohe and tecta S. Stwxr4'Homemwoshp and NeWilsorlhood IbWWm Harming Policy abate (Volume 7, iwte 4 M& 71-7L Pahl 8 of 10 Ill. Ennplrlcel Studies of Rental Housing Impacts an Community Livability in Five Cities Through the Cteratum review, we were able to Identify empirical studies In Ova cities that show v correlation between the concentration of rental housing and negative impacts on community Wablilty. The fire cities am Gakesvilie (FL), State College (PAJ college Park (MD), Cumberland (MDL and Chapel HIR (NC). Specifically, these five empirical studies i co* a Ink between the concentration of rental housing and Increases in nuisance eomplabb, code ablations and pollee Incidents. In 2002, the City of Gainesville conduced an analysis of student housing Issues in the neighborhoods around the Universtiy, of Florida, which were Identified as the etudes University of Florida ¢M Context Area. The CRyys Comprehensive Pian specifically contains a policy telling for such a study In Its Future Land Use chapter. Policy 5,L7 states that 'ft City shell proper* a study of the impacts of rentals on singie- femiiy neighborhoods and shall implement additional programs as necessary and appropriate to stabldre and enhance these nelghbo booWl Based on Census date for the Census tracts that make up tiro OF Context Ama, the study estimated that approxdmat* 75% of the residences in this area are used as rental housing. Using code and noise complaint data from the Clys Coda Enforcement Division, the study tabulated and compared the number of complaints from the OF Context Area with the overall qty. Although the OF Context Area represents 2916 of the households In the city, the study found that approdoutey 51% of the noise complaints cane from this ores, 46% of the over -occupancy, complaints, 50% of the Won triangle (obstructed views at Intersection corners) complaints, 43% of the sign violations, and 87% of the minor housing code violations' kir M1861 In 1994 and 2007, the Borough of State Collette compiled `Vlolationaby Housing Type• reports. The housing types include apartments, dopes, fratarnitles, singtefiamily houses, matal houses, morning houses and townhouses. This analysis showed that rental single-family. houses had the highest ra nga number of nukaoca violations per ado foRowed by duptaxes end fi stemitha.a The top four violations for rental sln&4amly horse were snow, rebso, weeds and noise. The record does not show any evidence that the maximum of three unrelated persons rule, which was enacted In 3979, reduced the number of conversion: of owner-oecupled singledamYy houses to student rental houses. In 1497, State College Borough established a minimum spacing ordinance between student renal houses. The record suggests that the minimum &Weee between student renal sindsfamliy homy has resulted in a decrease in conversion of owner occuged homes to ramal hones! In 2005, the City of College Perk conducted a renal housing study that leaked at declining homeownarship, on Inueasing trend in conversions of owner -occupied single-family (rousing being to renal housing, and the a Dunne Assorlates,'Anatyds of Issue[ Regarding Student Housing Newthe Unlvesityof Florida,' April 2M: L 7lM 24. a Staff of Sba College eomud,,'Slutahuhhe Heighbafiaods inMtew1ap Borough," June 4 2089:7. 'Iblddm Page 4 of 10 concentratlon of Qty Cade violttlons occurring In rental alnLia-famCy housIna. In 2004, the study colo heed that tho average number of first notice coda violations par resideaml rental unit was 0,78 compared to 0.21 first notice code violations for owner ocorpkd resldential tats, whish equates to 3.7 Mmes more violations for rental houxtre In 2008, there were o.92 violations per real housing unit compared to 039 for awn®rvoccmpled housing tMIL" This study found an Increasing trend In conversions Of own single-family homes to rental housing and a eorrespondlmrg higher rata of CRy code vlo}atlans in rental single-family housing. In addltian to the nWtWa Impact on nalftorhood quality and livablllty, this afgnllicmmt hlgher kW of nuisance violations also results In additional costs for the City to process code vlolatlerms, Including observation, recording, commanlcating and rectifying them. • .a d,: I, This POW analytes the finks between residantiel rental properties and crime incidents M the Ory of CumbUkfld, MD, which has a population of approximately 21,Wii rmidsntL Using poke Incident remmrt Or crone aocmaents ware nna d The study sure l these crimes kcame 'the aro Anti found In a residertlal berthed and aro cogsidetea portant measures or hu1_igtors of mtelghborhood 'I MY of y[e "'t This study found that Increases In crime were IWxd to resideedel rental properties, In particular rental Properties where the landlord does not live onsite, properties that are part of lsrW rental property holdfrtga, Properties that use Section 8 vouchem and properties In m Ifbodtwds with o lower percentage of 6wnW4xurphad houses. Chapel Mira 2000 Comprehensive Plan `Is organteed around twehre maW themes, each growing out of the community values that have been hdentgkd and which, taken togethhar, form a strategy for Chapel HBrs fictarc"h' One of these moor themes Is to conserve and protect existing nelghharhoodL The Comptehaaslve plan contains an entire chapter &voted to eommunayc harecter, IndudhKiiosis strategies and actions to coraerve and protect the dharacterofthe community's nelghborhoods. `ihe central purpose of the strategies and actions contained in the Comprehanslve pleb Is to manage growth and change so that Chapel FRAwill continuetoban aspatial community character and quality oflife Inthe future' One of them strategies b to address the ne%hhorhood Impact of the conwnlon of ommeroccupled hmwslna to rental housing, Including nuisance rompdafnts, The City has idanUW communay lRdleators that are mOtmRored armuaffy 9a a means far tracking progress Of 918 Iropiementatlon of Its Comprehensive plan strategies For the rental housbmg strategy, the corresponding mnnM nity kdicaror Is the percentage of toad rouse complaints that occur In nelg1both09ds that touch and etrde the dowmowm end central campu., which have been designated Resldemial Canser vArms In the C _ __atl __ hy'b Land Use Plan, in 2004, 33% of Rain complahn occ-ured In them ne%hbodioods, which have co, ntrKdom of residential uala SPaleyGroup,'ihrere ISO Rational Basis for RentStaNl}radon in College Park, Maryland,` AOrI12005:17. SIP POOey GrouP, "there Reagins a Rational liansfor Red SbbRkauan in College Pais, Maryland,OAWU 2W9:11 u7sance I. Rephmn, NRemi Housing and Qlme: The Role of property Offlwn dp and Managemmt,`%Meals of Regional Science (44 2008:2 u rem of Chapel fall IM, "PI&MMg for Chapel Hflra tetra: The Comprdmwve pine," Mays, 2000: I. Ibid:11 Page 5 of 10 rental housks's Since there neighborhoods represent approhdmateiy 20% of the total housing units within Chapel HIII, they are responsible for a disproportionate share of the laud nolle complalots In the community. The City of Chapel HIII dearly links and monitors rental housing :nuisance Incidents with neighborhood character and quality of hide. IV. Mimesota Fnanrhplas of ties with Rental Housing Concert talon Repealotons At the state level, In addition to WlnonVs rental heuskng concentration ordinance, we are mm of three other Minnesota cities that have established ordinances to address the Issue of concentrated rental homing—Northfield, Mankato and West St, Paul. While VAnaWs ordinance established a maximum of 31146 rental housing properties per residential block, tha other dila' mmdmums are all lower Including 25%, 20% and 10%. These three ordlaances were an established after Wtnomrs ordinance was in place —Northfield (2007), Mankato (2008) and West St. Paul (2012). Northfteld, MN: Located In Businesses Ordinance (not Zoning Ordinance), Renal Housing (Chapter 14, Arthde 111). Limits the peioentege of houses on a *6 blodkthat can be granted nodal housing Rcensesto 20% In low density neighborhoods (R-1 and R-2= tog cilstdcts). Mankato, MN: Located In Business Regulations & Lkenslog Ordinwm (not Zoning Ordinance), Dwelling thh8 Rental (Section 5.42, Subdlvlslon2O), !knits the number of lots on any block that tae eligible to obtain a rental Ilcansa or to be licensed as a rental property to 251L West St PauL MN: Looted In Building, Housing & Construction Regulations Ordinance (not Zoning Ordinance), Rental Dwellings (Section 435), Limits single-family rental properties to 10% per block in an R1 coning district. sTown of Chapel km (Nq "7004 Chapel HI@ Data enol4°luly 2004: m Page 6 of 10 V. Anrtyrin of Winona R°rdaance and police dratlona Data in orderta Compare WlnOna's rental housing situation with the findings from other does' empirical studies related to rental housing COOM UCTI iSSreS, which are described in Section RI, en analysis was canducted of WinoWs nuisance and pollce vk&tlons &U. Sine the CRFs v30% dtula° zoning onflnence was adopted at the and of 2005, this data analysis rovers the time 20052011 for nuisance aampidbnta. PORca citation data was analyzed for the 2009 OW time POW a Intent of this analysis la to calculate and compare violations data for rental housing vs. ownemarcup housing within non-mehlfamily residential areas, as well as concentrated rental resklentlel blocks (blacks currently over the 30% mmdmum) vs. e0 other residential binds_] This analysis of inehunca..,ttand police vlolatlos was limited to propmtlas within the COV! residential zoning dMrkts, except for R3, sbee the `M Rule S only appilcable to time zoning districts. Properdas In the following zoning dletrlcts aro exempt from the' 30% Rule•: 0-1, 0-$ g-3, R-3, M•1, end M-2. Wlthln the applcable residential zolft districts, them am currently 7,359 properties. Same of time residential Properties hove not bean developed with a residential bulkilng yet, therefore, the more mWant total residential proparttes number that we used is 6,557 developed Msidentlai propertles, not Including R3 Pte. In 2M, 1,161 properties had rental honeying mert5lwtloti, which means rental hmt*g carNed properties represented 17.7% ofthe no4-multiF n*restdentral properties within Wk=v. In 2014 them were o 3%P thant nu mberof blocks that emeaded the maydmum level of30%rental housing. These blocks contain %= residential properties, Including both rental and owner-oocvpled housIP& and represent 23.3% of the Una -multifamily residential properties within Winona. e76 of tie 1,528 properties an the Raw SW blonds had rental housing oe:tlflcatlan, which translates to an avoe� of 44.2% rental hauslag prapertlas on tis 'aver 30%" blacks. Aftugh many blocs exceed the maonum Inial of 9016 rental housing, many Mods do not Within the dty's area of traditional st7uam Wacle, aPptoxim Ov 700 additional rental housing amefications are pem tOd an blacks that currently hwe lens than 30% rental bcuskag. Within the e"m dty, OPProxhastely 1,400 additional rental housing certifications could be permitted In other words, fins than half of the posdble rental housing rattlficatlons am cunehdly being used since 1,171 rental housing ceatrOeaHons cumantly exist compered to the possibility of an additional 1,400that could bepermitted. The first type of analysis keds at nuisance eomplabrts for the time period of 2006-2011 for e1 properties within residential zoning dl b*% except R3. Tim types of nuisance complaints Included thefollowings uncontroW weeds, grosspawn maintenance, gartage, junk, vahLceen, vehicles parted In yard, fundhtre In yard, snowAce, no buNding pomik building detedaratte n, fence delarloratla% and other. Table I below summadess total number of residential property aonplalydr, nutter dk percentage of tenttl property complaints, and number dk percentage of non-metal pmpartV Complaints. The moor findD* is that mated j housing properties, which mWesent just 17.7% of 11 MM-multifem8y residential properties within wbum� were regn Bible far 51%of the residential talsance Complaints from 2WS-2011. Page7 of 10 Tcble It Nuisance Complatms—Rental Be ldentirl Properties vs. ban -Rental Properties (2806-2011.) Yea rate KumW aIFIC2E ontlal Property r4m Wats Nambnrof Rsa WPMxrCy Carnpfalnm Y4ssodafed tM/Rental Proptrtlrs Arumberof Hon-P.r.7tal PMPCrty COMAW11tv %4sroddted w/Nan-Rend Prap,Rrttss 2011 345 133 391% 212 61% 2010 414 194 47% 220 53% 2009 492 249 51% 243 49%- 2W 419 232 5691 101 44% 2007 416 255 61% 161 99% 2006 236 108 46% 1711 54% 2006-2011 2,316 1,171 51% 4145 49% Note: Rental housba pmperdes reprMat 12.751 of a0 nan-mult49mtrly msld!nM propMlas In Winn% notlnduding resfdenthd propwtks to the faUa viny Chwnptedsonfng dMets—B-1, B 2, B3, Bim, NF1 and M-2. The second type of analysis looks at nuisance complaints for the time period of 2006.2011 compad"S blOckswfth OW30% rental hoUsIngto blacks with less than 3CFA rental housing. Table 2 below summarizes total number of residential property complaints, number A phrcentage of complaints associated with blocks having aver 30% rental housing, and number & percentage of complaints associated with blocks having less than 3096 rental housing. The major finding Is that blbcks with over 30% rental housing, which represent just 23,3% of all non-mukifamlly residential properttes'wfthin Winona, were responsible for 47% of the residential nulsonce complelms from 2006.2=. Table 2: Nuisance Complaints —Concentrated Rental Blocks vs. tither Residential Blocks (2006.2011) Year TotaiNumberof Resfdantlaf P operty Cotnpfo:nts Nmnboraf C=Pkksts/n Made; OM 90XRffnW H 4S4ssodatadty/ OkdtOVElt 3W Rental Hous►ag NonoWrof convointsm Rhads LESS THMSO75 Rental Hare XAnodatedwl RO* an 7fG4NM RenedHousbt0 2011 945 131 38% 211 62% 2010 414 1B7 4516 227 S5% 2009 492 233 47% 259 59% 2008 413 203 49% 210 51% 2007 416 222 SS% 188 45% 2006 236 102 43% 134 57% 2005 -MIL 2,316 1,084 47% 1,232 53% more: arodas twin 0verams rental lmurarprepretrnt23si6 of agnon-MUHF meyresldentki pmpertkshr M on%not kWhdtyntrdendalPrOperttu In tftef0fowin0 asentpted=dn9dhokts—e-1, 04 BA, Rd, A!-1 sad Md Pogo 8 of 10 The third type of anaKstc delves deeper Into nalsonce oamplabns for the time per€ad of 200&3011 to compare rerdcVnon-agate! Propartks on "ffww 30% rental bloats' with rentaVnon rettEl propertles on "I= than 30% rental blocks". Table 3 belowsumearires this date -The analysis In the upper half ofTiable3 shows that rental horsing properties on concentrated rental b1=13 had en average number of nuisance comphdats per property of 1.16 vs. 0.60 for rental housing properties on non-concenbated rental blocks. This difference translates to a 45% higher rate of nuisance Complalms far rental housing properties that are located on concentrated mein! blocks. Anotherwayto lookst it IstW rental housing prnpgrUeslocated on concentrated rental blocks, which represent 109: of all residential paoperttes, era responsible for 34M of resfdentlal nuisance complaints. Furtharmcu% the analysis in the lower half of Table 3 Atm that non - rental housing properties on concentrated rental blacks had an average number of nuisance complaints per property of 0.35 vs. 019 far non -rental housing properties on nrm-rbncentrated metal blocks. Thus, the concentration of rental housing mates a spMaver effect an nowental horsing to Increase its rate of nvoragaOtd ancecomplalnta parproperlymarathan 6096. Table 3: Mulearm CamPW ts- Rfmt5VUWWtew&I Properties & Concentrated Rental Blocks (2006,2011) 7YPead`�Pertks 7btad NuraOerof lfvarappe 9f ofTord 7f of Numberof Magnate NanderctHWdeatiei Nugance Properties matplaints 20C FAM M&WO ftmpWm Pmpertfeff Lamplalnta PIFPMMMf Rental HousingPmpartles 676 783 L16 LOX 34% on owerw%Ramal Blocks RentaltlousingPropertles 465 7 366 O.Bo 8% 3,796 an I=Than 3ONRental Blade tfonlHousing 852' 301 035 1396 1691 Properties on owww76 Rentd Block; 14w -ft rtsl ffcai W4 844 0.19 6996 36Si Propartiw oo lessThan 90% Renal Biros TOW 61557 2.816 D95 100!6 1W76 The fourth typo of analysis looks at polloe dtaBans for the 2019-2010 time peapod. The types of police citations ane red Included pdniarily bud two, mirror eot�mpiton, social ho C;W- nanoe, c EEFERN md damage to pxopeRy and theFq/burglary, 7abk 4 below oomprares the wrnbv of paYcested with trntal/non ramal propertla on "over $076 metal blocks" wRh rraktaVtronamtal °Iia than 30X ranttel badrs". 7M ane0yals In the upper half d hila 4 scows that rants!rties on oonaerrtretad rental bloelts Ned en average neober of polios ettshart par property of0206 for rental [rousing properliffi on non ooncentmted rental blodo This dlffetencaa 16076 hlghv rate of pollee dtatlons far tenrtaf housing properties that ere located on Concentrated Pastel bloom. Another way to look at It is that ental housing properties located an Page 9 of 10 concentmted rental blocks, which mprerent M of all residentilel properft, are responsible for 5556 of residential nuisance complaints. Table 4: Pollee Clutlans—Comparison of Renial Properties Q 6locls (2009-20101 7yp2gPMWtfes Totes raumkrof Averse %of Total hi ofPolhe Numbaraf Foflce NumG®raf R"Wooftr Citadaas pmpvves CMIans PaRce Piamr8es 2M9,2010 Madmirer ftPW ' Rantal properties on 676 36 0.0533 1056 5546 Over 30% dental Blocks RmW Properties on 405 10 0.0206 11% 13% Less TIM 3041 Rental Blacks ! l.i k Non-Reata►Pmpetttes 852 9 DAM 13N 49 as Owr30%Rantdf Bloch Nan ,antd Properties 4,544 17 0=7 69% 266 an Loss Than 30% Rental Blacks TOW 6.557 66 .6100 1009 10056 Nage: rhe poke dmttans datul"M09-2010abow darn not Include Ube f9J q1the citations hews na oddress tws knikatedon Ume dboWnsfor &e artuaflacaffm O'ft aftnekwW=G W. Condttslon Our literature review of rental housing concentration and its effects, Including the amplrkal studies of five clues, supporta the conclusion that the concmdra o°k-orental housing results In negauve Impacts to the quality andllvablYty of residential nelgfdrerhoodslln addition, our 'compilation and an*6 of the relationship between Wmana's remal housing concentration and nuisance complOrtelpoOee Witions data pnvalleisthe findings of the literature review. In Particular, vie find that concentrated rental homhw In Winona has resulted In a much higher rate of radiance complaints and polka violations In concentrated rardd housing blacks, bnpnu dng both rental and non -rental residential prepertles Thus, hand upon the litenbre review, Including the empirical studios of five titles relevant to Wkurna's rental housing Issues, and the detailed analysts of Winona date, we conclude that the doncentrMbn of rental housing In Winona results In increased IevNs of nuhance and poike violations In those nelghborhoods. As these vlolatlens ars Indicators of Increased nuisances and decreased property maintenance levels that negatively affect nelghbarhood quality and MUM% we also conclude that the concentration of rental housing leads to decreased neighborhood quality and Uvebility. Page 10 of 10 Kellie Fruehling From: Freerks, Ann M <ann-freerks@uiowa.edu> Sent: Monday, November 06, 2017 5:25 PM To: Kellie Fruehling; Jim Throgmorton; John Thomas; Kingsley Botchway; Susan Mims; Pauline Taylor; Terry Dickens; Rockne Cole Cc: Karen Howard Subject: Housing Code Changes on City Council Agenda November 6th Dear City Council Members, I will be unable to attend the November 6' council meeting, but wanted to send a note. Although I have served on the Iowa City Planning and Zoning commission for many years, I am not representing the commission with this correspondence. I am aware that the City has been working to cap rental permits and improve the housing code (Item 9 on your agenda). I would like to suggest that you expand the Bowery Rental District Boundary east to include both sides of Governor street and not divide this neighborhood in half. The city and citizens have spent a great deal of time, effort and money to stabilize this area and both sides of the street will require the protections that expanding this map will bring. The heat map shows that both sides of the street are battling the trend toward full student rental. Balance is the key to stabilization and only with this extension will balance be possible. I would also suggest that it would make sense to afford the same protections on both sides of Governor in the Goosetown neighborhood. Thank you for taking the time to read this. I know how much information passes in front of you so I will keep this short. Sincerely, Ann Freerks 443 South Governor Street Iowa City Kellie Fruehling From: Cheryl <cherylcruise@aol.com> Sent: Wednesday, November 15, 2017 1:46 PM To: Council Subject: The housing space study is being misquoted Council, In the coming housing code changes, staff have recommended bedroom area to be 35% of habitable sq ft. This is based on a 2013 NAHB study of space use in newly constructed single family detached houses. However, the study is misquoted. It actually shows bedrooms as 40%-44% of habitable sq ft. (468/1163 to 1088/2482) The study does not cover housing of less than 1600 sq ft total. We have no idea what happens with an affordable 1000 sq ft unit. Suggestions: 1. Use either 35% of TOTAL sq ft or 45% of HABITABLE sq ft. 2. Do not apply to units less than 1600 sq ft. (Median house size in the 1940's=1200 sq ft.) 3. Do not apply to single family attached units. 4. Forget the above and use 100 sq ft shared space for each bedroom as in rule 10-N. Cheryl Cruise 905 Bluffwood Dr Iowa City IA The NAHB study results: Percentage& Square Footage Breakdown Results from Table 1(how often particular types of spaces are present in new homes) and Table 2 (the size of the spaces, when present) are combined in Table 4 to show how space is distributed throughout a new home. To derive this breakdown, great room square footage is allocated according to the type of area it contains (family, living, dining, kitchen) based on the relative sizes of those areas in homes that have them. Table 4. Allocation of Finished Floor Space in New Homes (Square Feet) Master Bedroom 231 14 2% 309 120% 411 109% Other Bedrooms 237 146% 432 168% 677 179% Masler Bathroom 104 6.4% 154 6.0% 209 5.5% Other Bathrooms 86 53% 163 6.3% 285 7.5% Laundry Room 63 3.8% 96 3.7% 134 35% Entry Foyer 47 29% 88 3.4% 128 34% Kitchen 195 11.9% 300 11.6% 420 11.1% Dinft Room 126 7.8% 192 7,4% 266 7.0% Living Room 193 11.8% 223 8.6% 282 7.5% Family Room 181 11.1% 296 11.5% 426 11.3% O01er Finished Space 167 10.3% 326 12.7% 541 14.3% Total 1,630 100.0% 2,580 100.0% 3,760 100.0% Note Table 4 is based on averages across all homes Table 2 reports average square loolage of particular rooms only where they exist. As a result, most square footage numbers will be smaller in Table 4 than in Table 2. Sent from my iPad • rwl®��� CITY OF IOWA CITY 410 East Washington Street Iowa City, Iowa 52240-1826 (319(356-5000 (319)356-5009 FAX W W W.Icgov.org Late Handouts: Information submitted between distribution of packet on Thursday and close of business on Monday. ...... ......... a........... a.......... s.......... a ........ ........... .......... .wase. Consent Calendar 4d Resolutions and Motions Item 4d(9) Data Driven Justice Agreement — See redlined update Exhibit A 4f Correspondence Item 4f(4) Bill Ackerman: Nov. 21 work session — Lusk Avenue Abomination Regular Agenda Item 6a S. Gilbert Street and McCollister Boulevard (Preserve at Sandhill) — See additional correspondence Item 8 Revised TIF Policies — See additional correspondence Item 9 Rental Permit Requirements — See additional correspondence Imp Kellie Fruehlin From: Reuben Grandon <reuben.grandon@gmail.com> Late Handouts Distributed Sent: Sunday, November 19, 2017 3:17 PM To: Council Subject: Letter to City Council for November 21st Meeting 1 Attachments: City Council, Iowa City, Nov. 19, 2017.pdf (Dete) Dear City Council, I would like to provide input on the pending amendment to ordinane Title 17, Building and Housing, Capter 5, Housing Code, to establish a rental permit cap. Please find my letter to City Council attached. Sincerely, Reuben Reuben City of Iowa City City Council 410 E. Washington St. Iowa City, IA 52240 November 19". 2017 Reuben Grandon 935 E. College St. Iowa City, IA 52240 Dear City Council, I understand because of Iowa House File 134 passed into law in April, 2017, you are working to replace the now nullified City ordinance which limited rental households to a maximum of three unrelated persons. As you evaluate options to maintain a healthy balance of homeowners and renters throughout the neighborhoods, I encourage you to pay close attention to how the new ordinance will impact group living households, such as rooming house cooperatives. Rooming houses include intentional communities where a self -identified group of two or more people live together, who share in the governance, management and maintenance of the household. Examples include housing cooperatives, groups of seniors sharing housing, co -housing for veterans, mission houses for religious organizations and individual co -housing entities. Positive attributes of intentional communities include increased affordability, lowered environmental footprint, retention of historic building stock and good neighbor relationships. As you work through this legislation, please embrace different definitions of family which have nothing to do with being related by blood, marriage, adoption or placement by a government or social service agency. Other cities are taking proactive steps for rooming house cooperatives. Earlier this year, Boulder, Colorado (home to Colorado University) passed an ordinance supporting cooperatives with a 7- 2 vote.' Last year, Minneapolis City Council members drafted and passed an ordinance to allow intentional communities, overriding the previous zoning which limited unrelated households to three or five residents." It would be great to see Iowa City be pro -active on this issue. Cooperatives are a cost-effective and bottom-up approach to affordable housing. In the Iowa City Strategic Plan two of the primary goals are to foster healthy neighborhoods and advance social justice and racial equity. Provision of affordable housing is identified as a method to achieve both goals. The Central District Plan, which includes neighborhoods near downtown, identifies affordable housing as one of its goals within the Housing and Quality of Life Goals and Objectives. Rooming house cooperatives should be encouraged as part of the City's Affordable Housing Action Plan. Cooperatives are sustainable housing options. The Comprehensive Plan identifies creating healthy and sustainable neighborhoods as a strategy that promotes the City's environmental goals. As part of the Strategic Plan, promoting environmental sustainability is included as one of the primary goals. Furthermore, the City is currently adopting a Climate Action and Adaptation Plan. The environmental and sustainable benefits of cooperative living arrangements should be recognized as positive contributors to the City's long-term goals. Please do not legislate isolation. Instead, take this opportunity to adopt legislation that supports and encourages rooming house cooperatives. Sincerely, _Pz-� Reuben Grandon http://www.da i lyca mera. com/news/boulder/ci_30703047/at-long-last-boulder-app roves -new -co-op " http://www.startribune.com/change-allows-intentional-communities-in-minneapolls/405702806/ 4k Kellie Fi uehlin From: David Ginger <DLGinger@belinmccormick.com> Late Handouts Distributed Sent: Monday, November 20, 2017 11:14 AM To: Council Cc: R. Michael Hayes; moliveira@prestigeprop.com Subject: Comments to Proposed Housing Code Amendment Attachments: Itr- Iowa City Council.PDF (Date) To whom it may concern: Find attached Prestige Properties, LI -C's comments to the proposed housing code amendments to be considered November 21, 2017. Please contact me confirming receipt of the attached as soon as possible. David L. Ginger Associate Attorney 666 Walnut Street, Suite 2000 Des Moines, Iowa 50309-3989 Direct Dial: (515) 283-4668 Direct Fax: (515) 558-0668 dlo inaer6ftelinmccormick.com BELINMCCORMICK ATTORNEYS AT LAW Confidentiality Notice: THE EMAIL AND ANY ATTACHED DOCUMENTS CONTAIN INFORMATION FROM THE LAW FIRM OF BELIN MCCORMICK, P.C., WHICH MAY BE CONFIDENTIAL AND/OR LEGALLY PRIVILEGED. THESE MATERIALS ARE INTENDED ONLY FOR THE PERSONAL AND CONFIDENTIAL USE OF THE ADDRESSEE IDENTIFIED ABOVE. IF YOU ARE NOT THE INTENDED RECIPIENT OR AN AGENT RESPONSIBLE FOR DELIVERING THESE MATERIALS TO THE INTENDED RECIPIENT, YOU ARE HEREBY NOTIFIED THAT ANY REVIEW, DISCLOSURE, COPYING, DISTRIBUTION OR THE TAKING OF ANY ACTION IN RELIANCE ON THE CONTENTS OF THIS TRANSMITTED INFORMATION IS STRICTLY PROHIBITED. IF YOU HAVE RECEIVED THIS EMAIL IN ERROR, PLEASE IMMEDIATELY NOTIFY THE SENDER OF THIS MESSAGE. This email has been scanned for email related threats and delivered safely by Mimecast. For more information please visit hfr)://www.mimecast.com BELINNtCORMICK ATTORNEYS AT LAW R. Michael Hayes Direct Dial: (515) 2834647 Direct Fax: (515) 558-0647 E-mail: rmhayes@belinmccormicir com November 20, 2017 E-MAIL AND PERSONALLY DELIVERED Honorable Mayor Jim Throgmorton and Members of the City Council of Iowa City, Iowa City Hall 410 E. Washington Street Iowa City, Iowa 52240 Re: Amendments to the Housing Code to be considered as Agenda Item 9 at the November 21, 2017 City Council Meeting Honorable Mayor and City Council Members: Our firm represents Prestige Properties, LLC and its affiliates. They own existing single family, duplex and multi -family rental housing in Iowa City, primarily within the proposed Rental Impact Area. We write to set forth concerns regarding the proposed Ordinance amending the Housing Code, Chapter 5 of Title 17 of the Iowa City Municipal Code, to establish a rental permit cap, to strengthen the minimum requirements for rental housing and to amend the sanction provisions for violation of the rental housing code that is to again be considered at the November 21, 2017 City Council meeting. We thank the staff for considering some of our concerns with the original draft of this ordinance as it was introduced on November 6, 2017. The changes to proposed sections 17-5-18(L) and (N) address a number of our concerns. Separation of Duplex Units. A concern remains regarding the proposed new Subsection 17-5- 18(0) (in Section 10 of this Ordinance), which provides: "The two (2) dwelling units of a duplex must be physically and permanently separated, and the separation must be maintained. By way of illustration, a duplex shall not have a door that opens from one duplex unit direct lying into the other duplex unit." This language does not address what happens in the event that the two units currently rented as duplex units cannot be physically and permanently separated. It appears that historically, Iowa November 20, 2017 Page 2 City has issued rental permits to what it characterizes on the rental permits as nonconforming duplex units, where one duplex unit is the first floor of a two or three story house and the other duplex unit is the upper floor(s) of the house. This has occurred for many years prior to the acquisition of these units by the current owners and continues to the current time. The ordinance should allow that property to continue to be rented, but as a single family house. This transition may need to be made after expiration of the existing leases. This section should be amended by adding the following at the end of this section: "Any duplex units that are licensed as rental units on the effective date of this ordinance and that do not comply with this section can, in the discretion of the owner, either be brought into compliance with this section by July 1, 2018 or can continue to be rented thereafter as one single-family dwelling." Provision of Parking. Section 10 of the ordinance proposes a new subsection 17-5-18(Q) that provides: "After November 21, 2017, an improved surface shall not be constructed, installed, or established on the rear yard of a single-family dwelling or duplex, except within the first 20 feet of depth as measured from the rear lot line and setback at least 5 feet from abutting properties. The remainder of the rear yard shall remain landscaped open space, free of impervious surface. This provision shall not apply to allowed accessory structures. Rear yard shall have the meaning as defined in Title 14 of this Code. Improved surface means asphaltic cement concrete, Portland cement concrete, manufactured paving materials (such as brick), or similar hard surface." This section, as drafted, prevents access to the parking in the rear yard from a driveway from the front yard or side yard and assumes that the rear yard abuts a public right of way. What if access comes to the rear yard parking comes from the front or side yard? Suppose one leases a house with a detached garage located in the rear yard that is accessible from a driveway from the street in front of the house. This appears to bar such a driveway, once it passes the rear of the house. If the garage is accessed from the rear, then the driveway must be at least 25 feet in length under the zoning ordinance. This would bar such a driveway. Under the zoning ordinance parking is an allowed accessory use. This section states it does not apply to allowed accessory uses. This section as drafted is ambiguous and is too restrictive as regards how one can provide the desired off-street parking. As admitted in the staff report, this proposed subsection amends the zoning ordinance requirements for parking for single family and duplex units in all zoning districts. As such, by Iowa Code Chapter 414 and by the City Code Section 14D -8D-5, this provision or any other rule regarding construction of parking for these rental properties can only be adopted after referral to the Plan and Zoning Commission for its review and recommendations and after published notice of the proposed ordinance and a public hearing held before the city council. This proposed subsection 17-5-18(Q) should be deleted from this ordinance at this time and referred to the plan and zoning commission for its review and recommendations. November 20, 2017 Page 3 Modification of the Sanction Provisions for Violation of the Housing Code. Section 5 of the proposed ordinance proposes to amend: a. Subsection 17-5-16(5)(c) to provide "Following a second violation that serves as a basis for rental permit sanctions within a twenty-four (24) twelve month period, the city shall schedule a code compliance settlement meeting involving landlords, tenants, and others whose corrective action is considered by the city to abate and avoid further code violations"; b. Subsection 17-5-16(8)(a) to provide: "The owner, any occupant, and/or any of their guests on two (2) or more separate occasions within a twenty-four (24) twelve month period have been issued criminal complaints for violations of the following provisions of the Iowa Code, this code or United States Code on the premises of a rental property: [then listing 17 different code references]'; c. Subsection 17-5-16(8)(b) to provide: "The owner, any occupant, and/or any of their guests on three (3) or more separate occasions within a twenty-four (24) twelve (12) month period have been issued municipal citations or written notices of violations for the following provisions of this code on the premises of a rental property: [listing sections from 5 chapters of the municipal code]"; and d. Subsection 17-5-16(8)(c) to provide: "On two (2) or more separate occasions within a twenty-four (24) twelve (1-2) month period of time, there is a founded complaint against a tenant," then the rental permit term shall be reduced to one year, renewable annually for at least a 4 year period. This increase from 2 violations within 12 months to 2 violations within 24 months makes it more likely that the second violation may not involve the same parties as the first violation. This is particularly true if the violations are by tenants and not by the landlord. A landlord may not be able to evict a tenant under Iowa law for all of these listed violations. It is not clear under the existing ordinance, if a landlord cannot reasonably evict a tenant, is it a defense if the landlord gives notice to the tenant that the tenant's lease will not be renewed? These provisions also could penalize landlords who are trying to be good stewards and actively forestall or address problems as they arise, not just bad landlords, or penalize a new landlord who acquired a property that had violations that occurred during the ownership of the prior landlord. We request that these sanction provisions remain at the two violations within a twelve month period and be amended to clarify that they involve violations by the same landlord, if the violations are by the landlord, or involve violations by the same tenant or group of tenants, if the violations are by the tenants. Alternately, if the twenty-four month period is to be the determinative period and the violations involve violations from different landlords or different groups of tenants or a mixture of violations by the landlord(s) and by the tenant(s) that the November 20, 2017 Page 4 number of violations that must occur within that twenty-four month period be increased to at least three violations. Thank you for your consideration of these issues. Very t�rul�y� yours, R. Michael Hayes For the Firm RMH Belin%P0764\0002\11.17-17 Letter on Rental Housing ordinance Amendments (2826299.3).doo cc: City Clerk, Mike Oliveira Late Handouts Distributed Kellie Frueh From: Eleanor M. Dilkes / (1�—' l 4/7 Sent: Tuesday, November 21, 2017 12:40 PM (Date) To: Council Subject: Agenda Item 9 (rental Restrictions) Response to November 20 letter from Prestige Properties' attorney Council — This email provides a staff response to Mr. Hayes' letter of November 20, 2017 which you received in your late handouts yesterday. 1. Separation of Duplex Units Staff has asked Mr. Oliveira to provide an example of the up/down duplex type unit that is referenced in his attorney's letter as we are not aware of duplexes that are configured such that access to the upper floor unit is through the downstairs unit. This provision will not prevent the typical up/down duplex where access to the units is from a common hallway/stair, with each unit having a secure entrance from the common hallway/stair. Staff will not be inspecting every duplex for compliance on January 15t, 2018. Over the next two years we will systematically inspect units and verify compliance in connection with the renewal of rental permits. If there are duplexes where owners have questions about the separation we would be happy to schedule an inspection to give them their options for the property, which would allow the work to be completed at a more convenient time, and done before the systematic rental inspection. A duplex unit can be converted to a single family unit if that unit complies with the zoning and housing codes. Conversion may result in the abandonment of a non -conforming duplex. 2. Paving provision Effective November 21, 2017, the proposed ordinance prevents paving in the proscribed area of the rear yard for single family and duplex rentals. It does not amend the zoning code provisions regarding parking. If a garage is accessed from a rear lane or alley there is no provision in any part of the City Code that requires a 25 -foot driveway. Alley -loaded garages are only required to be set back a minimum of 5 feet from the alley right-of-way, so there will be ample space for a driveway access to the garage. The proposed ordinance states that it does not apply to allowed accessory structures. Structures include garages, storage sheds, and similar, but does not include paving. This provision does not prevent an owner from building a garage in the rear yard that is accessed from the alley or one row of surface parking spaces perpendicular to an alley or rear lane, provided the parking meets all other applicable standards of the City Code. 3. Modification of the Sanction provision Changes were made to this section to address properties where the tenants change every year, but the type of tenant and disturbances remain the same year after year. As Mr. Hayes suggests, increasing the sanction period from 12 months to 24 months does make it more likely that violations in year 2 may not involve the same tenants. That is precisely why staff is recommending this amendment. Friends of one group of tenants often lease the same house the following year, and staff and neighbors encounter the same problems with noise and other disturbances with the second group. Additionally, increasing the sanction period is placing more of a responsibility on the landlords to manage their properties and educate their tenants on their responsibilities regarding being good neighbors. Mr. Hayes also suggests that properties may be sold and this penalizes the new owner. The Section 17-5-16 rental permit sanctions are discretionary, not mandatory. The Housing Code states that the following will be considered when imposing rental permit sanctions(17-5-16-C-5b-3): A) Level of cooperation of the parties in attempting to resolve issues. B) Level of disturbance associated with the violations. C) Impact of violations upon neighbors or other victims. D) Degree to which parties have taken reasonable steps to try and resolve the problems E) History of city and state code violations. Staff is not required to take action against the rental permit of an "innocent" new owner. The new owner, however, will be required to attend a code compliance meeting upon a second violation in a 2 -year period regardless of who owned the property at the time of the first violation. The purpose of a code compliance meeting is for the City Senior Housing Inspector, the Neighborhood Response police officer, the landlord, and the tenants to meet in person to discuss the code issues and enter into a "code compliance agreement" to address them. Section 17-5-16 does not require a landlord to evict troublesome tenants. That is a decision for the court. Section 17-5- 1606 specifically provides four defenses to the rental permit sanction including if the owner attempts to evict and pursues with due diligence all legal remedies to evict. Further, the ordinance does not dictate and staff does not require non -renewal of a lease as part of a code compliance agreement. Eleanor M. Dilkes City Attorney City Hall 410 East Washington Street Iowa City, IA 52240 319-356-5030 319-356-5008 Fax eleanor-dilkes@iowa-city.org Kellie Fruehl From: Sent: To: Cc: Subject: Dear Mr. Grandon, Karen Howard Late Handouts Distributed -J� 9 Tuesday, November 21, 2017 2:39 PM (Date) 'reuben.grandon@gmail.com' Council; Geoff Fruin; Tracy Hightshoe; Stan Laverman; Eleanor M. Dilkes; Simon Andrew; Ashley Monroe Information regarding your letter to City Council for November 21st meeting Thank you for your input regarding the pending amendments to the Housing Code and your concern about rooming house cooperatives. The pending legislation will not affect rooming house cooperatives. You may not be aware and hopefully will be pleased that Iowa City already allows rooming house cooperatives. Several years ago at the request of the River City Housing Collective, and with their assistance, we amended the zoning code and adopted a definition of "rooming house cooperative" that distinguishes this use from the standard rooming house. At the time, River City was seeking to acquire new properties for expansion and found that options within walking distance of campus and within walking distance from their other houses were limited. As stated in the 2013 memo to the Planning and Zoning Commission, the "cooperative relationship and interest among members [of a rooming house cooperative] in creating a quality living environment for current and future members provides more assurance that these types of group living uses will have a stabilizing versus de -stabilizing effect on the surrounding neighborhood." Through this amendment, rooming house cooperatives were classified as Fraternal Group Living Uses and as such are allowed in the Residential Neighborhood Stabilization (RNS-20) Zone, in addition to the other zones where standard rooming houses are allowed. Please let us know if you have additional questions or concerns. Best Regards, Karen HowardAICP Department of Neighborhood and Development Services City of Iowa City 410 E. Washington Street Iowa City, Iowa 52240 (319)356-5251 rvcnlvea taoles I Ili Submitted by Mike McLaughlin https://www.iii.orgtable-a chive/21137 a Sign In Search iii.org Current Table Structure Fires FILED By Type Of Use, 2016 (1) Export To Excel �\ `3o P m . NOV 21 2017 City Clerk Property use Estimated number Percent change Property loss (2) Iowa City, Iowa Percent change of fires from 2015 ($ millions) from 2015 Public assembly 14,000 -177% $308 Educational 4,000 -200 -4.6% 34 -15.0 Institutional 5,500 -15.4 37 Residential 371,500 -4.3 5,804 2Z5 -19.5 1 and 2 family homes (3) 257,000 -5.0 4,493 -14.8 Apartments 95,000 (6) 711 -38.8 Other (4) 19,500 -13.3 150 -40.0 Stores and offices 16,000 -3.0 436 -31.3 Industry, utility, defense (5) 8,500 -5.6 419 -547 Storage in structures 27,000 -11.5 665 -35.6 Special structures 29,000(6) 195 200.0 Total 475,500 -5.2% $7,898 •23.2% 0) Estimates based on date reported by fire departments responding to the 2016 National Fire Experience survey. May exclude reports from all fire departments (2) Includes overall direct property loss to contents. structures, vehicles, as business interruption or temporary shelter costs. - machinery, vegetation or any other property involved in a fire. Excludes indirect losses, sw (3) Includes manufactured homes. (4) Includes hotels and motels, college dormitories, boarding houses, etc. (5) Excludes incidents handled only by private brigades orfixed suppression systems. (6) Less than 0.1 percent Source: Reproduced with permission from Fire Loss in the United States During 2016 by Hylton J.G. Haynes, CNafional Fire Protection Association. viv✓w.nrpa.orr Duplex Fire Iowa 1999 1 NIST www.nist.gov/el/duplex-fire-iowa-1999 National haft" of N U S. De art and Technology r U.S. Deportment of Commerce https://www.nist.gov/el/duplex-fire-iowa-1999 Engineering Laboratory (httys://www.nist.gov/el) Connect x6th us Duplex Fire Iowa 1999 (https://www.nist.itoy) (https://www.nist.gov) Keokuk Duplex Fire, Iowa,1999 On December 22, 1999 a fire in a two story duplex house in Iowa claimed the lives of three children and three firefighters. At the request and under the sponsorship of the National Institute for Occupational Safety and Health (NIOSH), NIST has examined the fire dynamics of this incident. NIST has performed computer simulations of the fire using the NIST Fire Dynamics Simulator (FDS) and Smokeview (https://www.nist.gov /el/fire research/fds smokeview.efin), a visualization tool, to provide insight on the fire development and thermal conditions that may have existed in the residence during the fire. An FDS model scenario was developed that best represented the actual building geometry, material thermal properties, and fire behavior based on information and photographs from ATF. The FDS calculations that best represent the reported fire conditions indicate that a fire originating on the kitchen stove spread through the house resulting in flames that engulfed the stairwell to the second floor within approximately 9 minutes from the start of flaming ignition on the stove. The critical event in this fire was the onset of flashover conditions in the kitchen. Within 6o seconds after the flashover occurred in the kitchen, the flames had spread through the dining room, living room and up the stairway. Details are provided in the report, "Simulation of the D,itnamics of a Fire in a Two -Story Duplex -Iowa, December 22 19oo (NIST IR 684) (hUp: www nist gov/manuscdpt- nublication-search.cf .12ub id=861122)." 1 of 2 11/21/2017, 5:17 PM Original Map • Based on Open Space Districts • Council requested an examination of those boundaries to make sure they align with past and ongoing neighborhood stabilization efforts. Figure 17.1. Rental Impact Area Map 4�W60 t AV i a .i City Park 'nRK e�wrB t $ Hickory Hill 8 North Side a�w •� .o`r emery a o �s '�9Wj'�n'sorz ro �RRE,sT t1=RsoN nT R aE � -- College Green GHFNp c4VE BnR NG ONST'� City High EaveR MErp ME La NE a'r V COUR ST R.r. EavE _ o I Riverfront Crossings Bowery Brookland/ Melrose- Bast Longfellow .r,L Fmerald Roosevelt RENT sT NTo s m �, KIRKw iso ve o I Miller Orchard - z m Mark Twain RpINET RIh �s — Riverfront to e Crossings pas Willow Creek West I %Ia " m Legend m wo -�- ORental Impact Area " kJ•i rt.•��� r I O Rental Pent! OlstncM iB "fib MORAp�N I_._. IOWA City City Limits , �N6 Tvo Central District Plan • Subarea A encompasses the older eastside neighborhoods that surround downtown Iowa City and the University campus; • It has the greatest diversity of housing types; • widest range of zoning designations; • Is the only area of the city where the single family neighborhood stabilization zone (RNS-12) is used; • It includes most of the city's historic and conservation districts. • It has been used in several neighborhood stabilization efforts, including: • Creation of the University Impact Area (UTA) for the neighborhood stabilization effort in 2012 that addressed density, occupancy and parking regulations for multi -family properties. • UniverCity Neighborhood Partnership program area. University m pact Area Map /LnPrae e Southwest District Plan • Proposed rental permit districts coincide with the Roosevelt Subdistrict in the Southwest District Plan where the emphasis is on stabilizing and preserving the single family character of these close -in west side neighborhoods. • No adjustments needed to the proposed rental impact area map on the west side. SOi1TMEST PL:XNNING DISTRICP Roosevelt Subarea 0 a��a-�..,mrJ�•rw. u.wl...,u _ X�,IJgmrvn rqa�... A°"°a.. O4�)tind,r Moiii PaMM1 MW,��W _ hltlk LnWSLNUJti'Y u1�Jq TnnNYe ilnMut - M1X:Ifnn ulli�X IM��Fr NxlJiltlll fenenl Cn•me,dJ � I`mlwtlTNl Eastside boundary adjustment Staff recommends adjusting several of the eastside rental permit district boundaries to coincide with the Central District Plan Subarea A boundary Figure 17.1. Rental Impact Area Map Mayflower Shlmek Dubuque Road Upper vo Foster Road 0. 1 Ralston Creek ,r o m „wre City Park 'a" rvx„ s o xacry Es,Ery A� .A .l ST m � Pheasr JEerEasox sr irn�"`irvs orz E Hill / Lel C i College Green RANO Ie4°E e�R rvc onst� City High muars _i MELx EAVE t •- c a Riverfront y Bower k Crossings East ' Brookland '�'� Court Melrose J / �s� Luca Emerald Roosevelt I Longfellow West High eExu T o$us=m Ervro i L anwvuo Ave c Miller/ & A Orchard Mark Twain o eT Ao mN d villa( Riverfront Willow Creek Crossings �a tsE West ie R^wN Legend `-t MRental Impart Area Rental Pe❑Nt Disi Grant Wood Iowa City City Limits tiro Mr '1- Rental Permit District - Boundary changes • Northside— shifted east to include the neighborhoods commonly known as Goosetown and Deweyville • College Green— shifted east to Parsons Avenue and follows Ralston Creek to Muscatine Avenue and encompasses the College Hill Conservation District and the Moffit Cottages Historic District Bowery District— is shifted to the east to the alley between Governor and Sumit Street, to encompass the entirety of the Governor -Lucas Street Conservation District and the UniverCity Neighborhood Partnership Program area. • Hickory Hill — mostly parkland and cemetery so not useful for our purposes, so incorporated the residential neighborhood south of the park into the City High District. Adjusted Boundary Adjusting the eastside boundary to match the boundary of the Central District Plan Subarea A boundary correlates with the areas of higher and more widespread nuisance and noise complaints. Percentage of Single Family and Duplex Units that have a Rental Permit and Number of Nuisances and Noise Complaints Rental Permit Cap — Percentage Total Number of Single- Family/Duplex Open Space District Name. units City High Melrose 1 Emerald Willow Creek City Park Mark Twain Longfellow Miller .+ Orchard Northside/Goosetown College Green Brookland 1 Roosevelt Riverfront Crossings East Riverfront Crossings West 1143 226 765 544 1138 909 310 1200 365 297 43 25 238 Percentage of Single- Family/Duplex Units that have a rental permit 13-4 15-9 17-6 21-5 27-9 28-4 28-4 53-9 54.0 542 65-1 68-0 76-1 4U'/o cap Number of•Total ;houses ;number of that, could ::new rental Percent ;get new ;permits that could ;rental that could be added ipermit ::beissued 14-1 910 SS/o cap Number of•Total ;houses ;number of that, could !new rental Percent ;get new ;permits that could ;rental that could be added ipermit :beissued 14-1 658 30"lo cap Number of•Total ;houses ;number of that, could !new rental Percent ;get new ;permits that could ;rental that could be added ipermit :beissued 26-6 304 21-6 247 16-6 190 24-1 54 19-1 43 14-1 32 22-4 171 17-4 133 12-4 95 18-5 101 13-5 73 8-5 46 12-1 138 7-1 81 2-1 24 11-6 106 6-6 60 1-6 15 11-6 36 6-6 20 1-6 5 Minor Amendments to the Ordinance • Clarification that no more than one tenant is allowed within an owner -occupied property without obtaining a rental permit. • Bedrooms must not exceed 35% of the "finished floor area" rather than "habitable floor area," so includes areas such as foyers, bathrooms, and hallways. • More closely matches National Homebuilders study • Easier to administer • Existing rental units not in compliance with the minimum shared living space standard may continue. • Clarified duplex separation standard — will not prevent duplex units from sharing amenities within common areas • Added a restriction on paving in rear yards of single family and duplex rentals effective today, November 21, 2017 to preserve a minimum amount of open space for the residents and to maintain healthy and sustainable neighborhood environment /D. Prepared by: Susan Dulek, Asst. City Attorney, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5030 ORDINANCE NO. 17-4733 Ordinance amendinTitle 10, „entitled "Public Ways And Property," Chapter 5, entitled 'Zity Plaza, to allow an association of downtown businesses to place a commercial structure on City Plaza under limited circumstances. Whereas, the City Code limits the use of City Plaza, including Black Hawk Mini Park, for commercial purposes; Whereas, in addition to provisions allowing for sidewalk cafes, sidewalk retailing, and mobile vendors, the City Code allows for the commercial use of City Plaza as part of a large, short term event such as Arts Fest; Whereas, another such short term event is the Iowa City Downtown District's weekend holiday market that has allowed local businesses and artists to sell their goods from a tent in Black Hawk Mini Park; Whereas, the Iowa City Downtown District would like to expand the holiday market from a weekend event to an event from Thanksgiving to the end of December; and Whereas, it is in the City's interest to allow the City Manager to issue a permit for the placement of a commercial structure in City Plaza and Black Hawk Mini Park for up to 45 days similar to the permit that allows downtown businesses to place their products on sidewalks and City Plaza Thursdays through Sundays from March to November. Now, therefore, be it ordained by the City Council of the City of Iowa City, Iowa: / Section I. Amendments. 1. Title 10, entitled "Public Ways and Property," Chapter 5, entitled "City Plaza," Section 7, entitled "Use of City Plaza," is hereby amended by adding the following new Subparagraph G: a. The City Manager or designee may issue a permit to an association of downtown businesses for the placement of a structure on City Plaza for commercial purposes under the following conditions: (1) The applicant must complete an application prepared by the City Manager's Office. (2) The duration of the permit cannot exceed 45 days per calendar year. (3) Insurance coverage as required by the City's risk manager. (4) Execution of an agreement to indemnify the City. (5) The structure must be approved by the Building Official. (6) No sale, transfer or assignment of the permit is allowed. (7) Other conditions consistent with the purpose of this Title of the Code. b. The City Manager or designee shall either grant or deny the application within seven (7) working days of the application being filed. The City Manager or designee shall have the discretion to deny the application due to the amount of space requested and/or the conflicting demands for space during the time period requested. The process for appeals and revocation of the permit shall be the same as for a temporary use of sidewalk permit. Section Il. Repealer. All ordinances and parts of ordinances in conflict with the provision of this Ordinance are hereby repealed. Section III. Severability. If any section, provision or part of the Ordinance shall be adjudged to be invalid or unconstitutional, such adjudication shall not affect the validity of the Ordinance as a whole or any section, provision or part thereof not adjudged invalid or unconstitutional. Section IV. Effective Date. This Ordinance shall be in effect after its final passage, approval and publication, as provided by law. Passed and approved this 21st day of November 2017. NI or Zan Attest: e.f i City Jerkk A roved City Attomey Ordinance No. 17-4733 Page 3 It was moved by Mims and seconded by Dickens Ordinance as read be adopted, and upon roll call there were: AYES: NAYS First Consideration Vote for passage: Mims, Taylor. Second Consideration _ Vote for passage: ABSENT: ABSTAIN: Botchway Cole Dickens Mims Taylor Thomas Throgmorton 11/06/2017 AYES: Thomas, Throgmorton, Botchway, Cole, NAYS: None. ABSENTf Dickens. that the Date published 11130/2017 Moved by Mims, seconded by Dickens, that the rue requiring ordinances to be considered and voted on for passage at two Col+ncil meetings prior to the meeting at which it is to be finally passu be suspended, the second consideration and vote be waived and the ordinance be voted upon for final passage at this time. t r CITY OF IOWA CIT 11-21-17 !%Z-%r�� COUNCIL ACTION REPO November 6, 2017 Ordinance amending Title 10, entitled "Public Ways And Property," Chapter 5, entitled "City Plaza," to allow an association of downtown businesses to place a commercial structure on City Plaza under limited circumstances. Prepared By: Simon Andrew, Assistant to the City Manager Reviewed By: Sue Dulek, Assistant City Attorney Geoff Fruin, City Manager Fiscal Impact: No impact Recommendations: Staff: Approval Commission: N/A Attachments: Ordinance Executive Summary: The Iowa City Downtown District has programmed a number of events for the downtown and City Plaza in recent years. For the past two years, this has included a winter holiday market in Blackhawk Minipark held in December. Varying weather, including potential damage to merchandise, have led to a request for a temporary market structure more weather resistant and flexible than a tent. City Code provides for processes to approve short term commercial events such as Summer of the Arts events, non-commercial structures for a longer duration such as the Prairie Box structure, and provisions for commercial activities such as sidewalk sales, mobile food vendors, and sidewalk cafes. There is not, however, a mechanism for structures to be used for commercial activities of a longer duration. This ordinance amendment would allow for the City Manager or designee to approve a structure to be used for commercial purposes by the Downtown District or association of downtown businesses for up to 45 days. Background / Analysis: The request for a more weather resistant structure in which to hold the Downtown District's winter market was made after the experience of the last two years. Having a structure in which to hold the market will improve the experience for customers and retailers and allow for better overnight security. Approving this amendment will not only help support local retailers, but improve the foot traffic and vibrancy downtown at a critical time of year for retailers when there are fewer outdoor gatherings for the public. The ordinance amendment would require applications for commercial structures to be approved by the City Manager or designee, with the structure itself approved by the Building Official, and insurance coverage determined by the City's Risk Manager. Recommendation: Staff recommends approval.