PUBLIC HEARING: Consider Request for a Home Occupation Permit at 6131 Green Valley Rd NW (Project No. 22-118); Case of J. Hill Container Company

The City received an application from Jeff Hillman (the “Applicant”) requesting a Level II Home Occupation Permit for a container business in the home as well as in a detached accessory structure located on the property generally known as 6131 Green Valley Rd NW (the "Subject Property").

Summary
The Applicant has requested a Home Occupation Permit (HOP) for their corrugated box container business at 6131 Green Valley Rd NW. The Subject Property does not have an existing HOP and thus has an open code enforcement case for violations of the City's Home Occupation section of City Code. The Level II HOP is required due to the following criteria outlined in Ordinance #22-06:

• Nature of the business not being typical for a residential neighborhood (i.e. manufacturing, dispatch center, and/or warehousing);
• Multiple non-resident employees coming to the home (noted 4 in questionnaire - maximum of 3 allowed by ordinance).
• Total accessory structure space devoted to the business exceeds what's allowed in City Code.

Code Enforcement
The request was initiated due to a code enforcement complaint and Staff interactions with the Property Owner. The Applicant has been compliant with Staff's requests for inspections and correspondence. The Subject Property is currently in violation of home-based business violations, as well as off-street parking violations with commercial vehicles parked on the grass.

Subject Property
The Subject Property is zoned R-1 Rural Developing and guided the same in the 2040 Comprehensive Plan. Surrounding properties are also zoned Rural Developing, or Planned Unit Development (PUD). The property is 7.20 acres in size with a single-family home and a detached accessory structure that is approximately 15,000 square feet in size. The accessory structure has an approved variance from December 1986, and a Conditional Use Permit from 1999 with two (2) previous owners. Copies of the Variance and Conditional Use Permit are attached to this case.

Home Occupation
The business, J. Hill Container Company, is a corrugated boxing business that makes and assembles cardboard partitions. The accessory structure is used for a majority of the business operations, including warehousing and manufacturing of products. Drivers are dispatched from the location for deliveries.

Staff completed an onsite inspection of the premises on April 13, 2022, where the Applicant gave a tour of the inside of the accessory structure used for the business. Most of the items were used for personal storage, with about 25% of the space devoted to warehousing operations for the business. An aerial outline of the areas devoted to the business is attached to this case. The Applicant also stated in their questionnaire that the home will be used for general office work related to the request.

Since the Applicant stated their business is moving from Elk River, Staff did contact the City of Elk River about the previous business location listed on their Minnesota Business Filing, which was another residential address. The City of Elk River stated they did not have any code enforcement records, nor CUP's or HOP's for the business at the Elk River address.

Ordinance #22-06
The request must be reviewed with standards set in Ordinance #22-06, which was adopted earlier this year. Staff has concerns about the proposal in regards to two (2) items noted in the ordinance:

1. The number of allowed employees cannot exceed three (3) employees for parcels larger than five (5) acres in size. The Applicant has proposed four (4) regular employees, and has mentioned hiring more during the summers.
2. The business cannot operate as a dispatch center. The Applicant has vehicles entering and exiting the property with drivers coming to the site to deliver the corrugated boxes.
3. The business cannot exceed accessory structure space allowed in City Code. The Applicant is proposing to utilize the entire structure for the business, which is larger than what's allowed through the CUP from 1999.

City Code Sections and Ordinances

• City Code Chapter 30. - Nuisances
• City Code Section 117-111. - R-1 Residential District
• City Code Section 117-351. - Home Occupations
• Ordinance #22-06 regarding Home Occupations

Alternatives

Alternative #1: Recommend the City Council deny the requested Home Occupation Permit. The proposal exceeds standards set in Ordinance #22-06 regarding allowed number of employees, and the "dispatch center" nature of the business. Staff supports this alternative.

Alternative #2: Recommend the City Council approve the requested Home Occupation Permit. Staff could be supportive of this alternative if specific conditions are applied.

The Applicant is responsible for all costs related to this request. 

Staff recommends adopting Resolution #22-085 denying a Home Occupation Permit for a container business at 6131 Green Valley Rd NW.

Motion to recommend the City Council adopt Resolution #22-085 denying a Home Occupation Permit for a container business at 6131 Green Valley Rd NW.