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File 2002006 Page 2 On February 20, 2002, the Planning Commission conducted a public hearing on the matter, and recommended that accessory dwelling units be allowable on all single-family lots upon issuance of a conditional use permit. The conditional use permit process provides an opportunity for public input. A copy of the Planning Commission minutes is attached. On April 16, 2002, the City Council held a study session to review the proposed ordinance. The Council expressed concerns about allowing accessory dwelling units in established neighborhoods. The general consensus was that homeowners in established single-family neighborhoods have expectations about the allowable uses, and that allowing accessory dwelling units could change the character of established neighborhoods beyond those expectations. The Council subsequently directed staff to write the draft ordinance so that it would apply only to newer single-family developments, including the Seven Greens PUD (Planned Unit Development). The developer of the Seven Greens PUD has indicated a strong interest in providing the option of accessory dwelling units to potential buyers within the single-family portion of that development. During the April 16, 2002 meeting, Council members expressed differing thoughts as to whether accessory dwelling units should require a conditional use permit or an administrative permit, but by the end of the- meeting there appeared to be a general consensus that they could be allowed by administrative permit if limited to newer developments. Staff subsequently revised the draft regulations, and is now proposing an ordinance that would allow accessory dwelling units within residential subdivisions that have received preliminary plat approval on or after June 1,2001. The proposed ordinance would also require the subdivision to include ten or more single-family lots, and would limit accessory dwelling units to the RSF-1, RSF-2, and PUD zoning districts. The preliminary plat for the Seven Greens PUD was approved on June 26, 2001 and contains 70 single-family lots. Therefore, owners of single-family lots in the Seven Greens development would be eligible to apply for an administrative permit under the proposed ordinance. Over the past few years, the City has approved several smaller in-fill residential subdivisions that included fewer than ten single-family lots. Those developments generally consisted of an oversized homesite within an established neighborhood that was then further subdivided. The requirement that accessory dwelling units be located in subdivisions that have at least ten single- family lots was added to ensure that accessory dwelling units do not alter the character of the existing neighborhood that surrounds the subdivision. A subdivision with ten or more lots would include a fairly sizeable land mass. Allowing accessory dwelling units in a subdivision with ten or more single-family lots would not have the same potential of altering the character of the surrounding neighborhood, because such a subdivision would create a mini-neighborhood onto itself. Conversely, allowing accessory dwelling units in subdivisions with less than ten single- family lots could change the character of the surrounding neighborhood. Lastly, the RSF-1 district requires a minimum lot area of 18,500 square feet and the RSF-2 district requires a minimum lot area of 12,500 square feet. The remaining conventional zoning districts require a lot area of 7,000 square feet or less. A PUD is a customized zoning district based on an approved plan. The requirement that accessory dwelling units be limited to the RSF- 1, RSF-2, and PUD zoning districts was added to ensure that accessory dwelling units are not