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05.20.2025 PC MinutesCHANHASSEN PLANNING COMMISSION REGULAR MEETING MINUTES MAY 20, 2025 CALL TO ORDER: Chairman Noyes called the meeting to order at 6:00 p.m. MEMBERS PRESENT: Chairman Eric Noyes, Steve Jobe, Jeremy Rosengren, Mike Olmstead, Dave Grover, and Katie Trevena. MEMBERS ABSENT: Ryan Soller. STAFF PRESENT: Rachel Arsenault, Associate Planner; and Rachel Jeske, Planner. PUBLIC PRESENT: Linda Paulsen PUBLIC HEARINGS: 1. ORDINANCE XXX: AMENDING CHAPTER 1 AND CHAPTER 20 DEFINING REGULATING DETACHED ACCESSORY DWELLING UNITS Rachel Jeske, Planner, explained that the City Council created a Planning Commission Community Development Work Plan for 2024. She summarized the list of topics to review and noted that they still needed to review the sign code and the accessory dwelling unit ordinance. She summarized the meetings in which they had talked about accessory dwelling units and noted that they provided a recommendation to the City Council on May 6, 2025. She stated that the City Council had a work session on detached auxiliary dwelling units on May 12, which the Planning Commission would review tonight. Ms. Jeske described the proposed zoning process and noted that they would be permitted in the Agricultural Estate (A-2), Rural Residential (RR), and Residential Single Family (RSF – 1 acre minimum). She said that the conditional use permit would be reviewed by the Planning Commission with a public hearing and that the final decision would be made by the City Council. She said that Conditional Use Permits are generally approved if they can meet City standards outlined in the code, with reasonable conditions added as determined by the City Council. Ms. Jeske said the height of the structure would not be able to be bigger than the principal structure unless they were located above a garage in the A-2 and RR districts. The detached ADUs have to meet the principal structure setbacks required by the underlying zoning district, and they had to be between 200 square feet and 960 square feet. She stated that there could not be more than one bedroom. She stated that there could be no more than one auxiliary dwelling unit allowed, both inclusive of attached and detached auxiliary units. She stated that the structure Planning Commission Minutes – May 20, 2025 2 must have a permanent foundation with no wheels, must maintain compliance with the underlying zoning district regulation for impervious lot coverage, and the owner must occupy one of either the principal structure or detached auxiliary dwelling units as their primary place of residence. She commented that the detached auxiliary dwelling units could not be used as rental properties, as defined by the City Code. She said that they could be generally consistent with the architectural design of the principal structure, and they could not have additional driveway access. She stated that they should not have separate utility connections unless approved by the City Engineer/Public Works Director. She said that an auxiliary dwelling unit must meet all building, fire, property, and maintenance codes. She said that they may require year-round vegetative screening based on review by the city. She stated that a property zoned RSF must be at least 1.0 acres, but if the property does not meet that requirement, they could request a variance. She reviewed a map showing property sizes across Chanhassen, and she said that only the purple and two blue shades could have a detached auxiliary dwelling unit. Chairman Noyes asked if there was a percentage of the lots in Chanhassen that were zoned RSF and greater than 1.0 acre. Ms. Jeske responded that she did not, but she could look it up. Chairman Noyes asked for the primary reason for reviewing this. He said that there have been ten previous requests that went through a variance process and were approved, so there was not a high historical number of requests. Ms. Jeske answered that the staff receives a lot of inquiries on the topic and stated that in 2024, they received ten inquiries and no applications from interested people. Commissioner Olmstead asked if they could have a separate line for private utilities or if they had to go through the primary residence. Ms. Jeske answered that the assumption was for all utilities to go through the primary residence, but since electricity was not through the city, it would have to be approved by the primary utility company. Commissioner Rosengren asked about the height in section A and the allowance to exceed the height of the principal structure if it was a garage. Ms. Jeske responded that it referred to detached garages, which may be taller than the principal home. Commissioner Rosengren asked if a detached garage with an auxiliary dwelling unit made it a detached auxiliary dwelling unit. Ms. Jeske confirmed this information. Commissioner Jobe asked if the zoning of the height of the garage was set by the RR district. Ms. Jeske answered that in all three of the zoning districts, they all have a maximum structure height of 35 feet. Commissioner Grover asked if a property was sold, and how a buyer would know that they have to live in one of the units. Ms. Jeske responded that the conditional use permit would be recorded with the property, so it would be given to the property owner when they buy the property. Commissioner Rosengren stated that he was confused because, in the last meeting, they were discussing attached auxiliary dwelling units. He said that the language did not allow short-term rentals, but they asked if they could include language about all rentals. He stated that they Planning Commission Minutes – May 20, 2025 3 discussed that the city does not regulate long-term rentals, so he asked how the city would monitor this information. Ms. Jeske answered that if a neighbor complained, they would enforce the code, and the city would follow through with the typical code enforcement process. Commissioner Rosengren clarified that it would be communicated when they got the approval for the auxiliary dwelling unit, and they would enforce it when they found out the information. Commissioner Grover asked if they should have the same language for the attached auxiliary dwelling units. Ms. Jeske answered that the attached auxiliary dwelling unit ordinance had already been approved. She said that the goal was that the conditional use process would be laid out more clearly. Chairman Noyes opened the public hearing. Linda Paulson said that the Planning Commission asked good questions. She asked about the frequency of monitoring of those who live in the unit. She asked what the penalty for abuse of an auxiliary dwelling unit would be for an owner to protect Chanhassen as a whole. She asked if conversion into a man cave would be permitted. She stated that the conditional use permit goes to one acre. She asked what would happen if someone had 0.73 acres and if they would lower that number to less and increase the density. She asked if neighbors within 500 feet would be notified when an auxiliary dwelling unit application was received. She asked how many structures were allowed on one lot, and about the impact of the pervious land percentage. She stated that Chanhassen was all built up, so she expressed concerns about the impact on pervious land and the impact on pollinator decline. She stated that her yard had a lot of milkweed, but if everyone built more buildings, then Chanhassen would be like Minneapolis. She expressed that it would be important to protect land for pollinators. She said that a comment on social media stated that the property taxes should increase on the property since there would be an increase in demand for public services. Chairman Noyes closed the public hearing. Commissioner Noyes asked if there was any process to notify the neighbors about an auxiliary dwelling request. Ms. Jeske answered that there would be a notification for the conditional use permit within either 500 feet or a quarter of a mile. Commissioner Noyes said that there was a defined definition of one bedroom and one bathroom. He asked if someone made a structure into a man cave, it would not necessarily make it an auxiliary dwelling unit. Ms. Jeske responded that the City Council discussed this at length. An auxiliary dwelling unit had to have a full kitchen, bathroom, bedroom, and living space. A full kitchen would have a refrigerator and a stove. Commissioner Trevena asked if there was a complaint and what process the city would take to respond. Ms. Jeske answered that the city did not have a specific process, but they would send a letter and request compliance within a set time. The owner would get three notices, and then it would be settled in court. Planning Commission Minutes – May 20, 2025 4 Commissioner Rosengren voiced concern about the language of prohibiting rentals. He said that a detached auxiliary unit would be more desirable to rent. He asked if the City Council was trying to limit how people used a detached auxiliary dwelling unit, so that would be why they created the language in the ordinance. Ms. Jeske answered that the City Council had a goal that the auxiliary dwelling unit is not rented, but it did not make sense to call out rentals since it would be difficult to enforce the process. She said that the attached auxiliary dwelling unit ordinance line about rentals was changed to match this ordinance. Chairman Noyes said that as proposed the city would take the same stance on rental on any kind of ADU. He said it clearly states that rentals are prohibited. He said that the question was if they wanted to be more strict with this, and if so how they would do it. Commissioner Rosengren said that there was no language in the City Code that did not allow residents to rent the house. Ms. Jeske answered that long-term rentals are allowed, but there was no permitting process with the city. Commissioner Rosengren said that the city was weeding out people who would not break the law. He said that the attached dwelling unit code was modified to match, so they were not differentiating the code. He stated that there was a fear-based approach. He asked what they were trying to prevent. He said he could see the city asking for a careful approach, and if it came up for review later based on interest and community applications, they could do it that way. Chairman Noyes said that there had not been much interest. He said that there were more inquiries, but there was a previous cost associated with the process. He said that the inquiry number and the number of auxiliary dwelling units might go up by a small amount since the process was more clearly defined. Ms. Jeske said that a conditional use permit was more expensive than applying for a variance. Commissioner Jobe asked about the lot size. Ms. Jeske responded that the auxiliary dwelling unit was limited to 960 square feet. Commissioner Omstead asked about the motivation of those who inquired. Ms. Jeske answered that most of it was people looking for parents or a caretaker to stay. Commissioner Jobe moved, Commissioner Olmstead seconded that the Chanhassen Planning Commission motions to recommend the City Council adopt the ordinance amending Chapter 1 and Chapter 20 regulating Detached Accessory Dwelling Units as presented. All voted in favor and the motion carried unanimously with a vote of 6 to 0. GENERAL BUSINESS: None. APPROVAL OF MINUTES: 1. APPROVAL OF PLANNING COMMISSION MINUTES DATED MAY 6, 2025 Planning Commission Minutes – May 20, 2025 5 Commissioner Trevena moved, Commissioner Rosengren seconded to approve the Chanhassen Planning Commission summary minutes dated May 6, 2025, as presented. All voted in favor, and the motion carried unanimously with a vote of 6 to 0. COMMISSION PRESENTATIONS: None. ADMINISTRATIVE PRESENTATIONS: Rachel Jeske, Planner, stated that they received two applications last Friday. One application was for the final plat for Pioneer Ridge which will go directly to the City Council. Additionally, the city received an application for site plan with variances for a project called Eden Springs, which would be a memory care residential development. CORRESPONDENCE DISCUSSION: OPEN DISCUSSION: None. ADJOURNMENT: Commissioner Olmstead moved, Commissioner Trevena seconded to adjourn the meeting. All voted in favor and the motion carried unanimously with a vote of 6 to 0. The Planning Commission meeting was adjourned at 6:29 p.m. Submitted by Eric Maass Community Development Director