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Planning Commission - October 18, 2023 Page 7 C.2. No rental license shall be issued for any building, room, or suite of rooms in a residential district for any “Short-term rental”, EXCEPT that, any such building, room, or suite of rooms that possessed a rental license with the City as of January 1, 2024, and which has been operated as a “Short-term rental”, shall be entitled to apply for a renewal of such license and continued use for short-term rental purposes. Provided that: the property has been maintained in compliance with all applicable regulations, and no citations or violations for noise, lights, property use, parking, or other nuisance conditions have been documented in the prior twelve (12) month period. [Option 2.] Sacred Settlements. As discussed above, the During the 2023 legislative session, the Legislature passed a bill authorizing religious institutions beginning Jan.1, 2024, to site micro-unit dwellings on religious institution property. It also requires cities to permit such “Sacred Settlements” of micro-units either via a permitted use or conditional use. This legislation was a part of the State’s efforts to address homelessness and affordability for the target populations. The statutory requirements for this land use are codified in MN Stat. Section 320.30, and a summary of the statute is provided from the League of Minnesota Cities as an appendix to this report. Essentially, cities will be required to accommodate these facilities as an extension of a religious institutional use. The only flexibility comes in the ability to require a Conditional Use Permit and impose limited zoning constraints on the extent or impacts of the use. Because certain such religious uses can be located in places where the introduction of residential uses could create new land use conflicts that are not anticipated by the zoning district in which the religious use exists, staff recommends the accompanying ordinance amendment language to require that such uses are allowed only by Conditional Use Permit. While Conditional Uses are presumed to be allowed in the district, there is a degree of discretion over that of a permitted use that gives the City some opportunity to ensure that the residential uses are reasonably compatible with the site and the neighborhood. The city has churches located in a variety of zoning districts. The operation of the statute relates to “faith communities”, not zoning specifically. The applicable Districts are R-1, R-2, R-3, R-4, and the C District – all by Conditional Use Permit. It appears, although it is not clear, that the use would be construed to be an expansion of a legal non-conforming use, such as a religious institution in the L-I, Light Industrial District, the R-O, Recreation/Open Space District, or the R-1A, Single Family Lakeshore District. Therefore, it is presumed that these settlements would not be allowed where the assembly/faith community use is non-conforming. Staff recommends the following as a component of this land use.