Title
Consideration of Home Based Businesses Code Amendments Recommendation
Recommended Action
Committee Recommendation
Planning Commission recommends denial of the proposed amendments to the Olympia Municipal Code for Home Based Businesses.
City Manager Recommendation:
Move to accept the proposed amendments to the Olympia Code for Home Based Businesses.
or
Remand the proposed amendments to the Olympia Municipal Code for Home Based Businesses back to the Planning Commission for further consideration.
Report
Issue:
Whether to accept the proposed amendments to the Olympia Code for Home Based Businesses or remand the proposed amendments to the Olympia Municipal Code for Home Based Businesses back to the Planning Commission for further consideration.
Staff Contact:
David Ginther, Senior Planner, Community Development, 360.753.8335
Nicole Floyd, Planning Director, Community Development, 360.570.3768
Presenter(s):
David Ginther, Senior Planner, Community Development
Background and Analysis:
Home Occupation Definition: “A commercial use within a residential dwelling unit which is clearly incidental and accessory to the residential use of the property and complies with applicable provisions of this Title.” [OMC 18.02.180.H.]
The City of Olympia has regulated home based businesses (home occupations) since 1962 with the primary intent of allowing home offices, childcare, in home hair salons and other businesses so long as there is almost no outward appearance of the business. These regulations have been occasionally updated, but retain the fundamental purpose as was written in the 1960s. Today’s home occupation regulations continue to focus on avoiding increased impacts to the surrounding residences by limiting the size and scale of the business within the residence. One of the primary ways this has been accomplished has been through requiring that only those who live in the residence can work in the home based business. Other limitations such as those related to noise, signage etc. have been in place for decades. While the primary function of these regulations remains consistent, changes to the workplace due to technology has changed and warrants a review of these requirements.
The intent of the proposed amendments is to update the City’s Home Occupation regulations to reflect the realities of the modern work environment where many people work from home. Proposed amendments will ensure the regulations are enforceable and consistent with citywide policies pertaining to small scale commercial uses.
Comprehensive Plan Policies:
Policy PL24.2: Unless necessary for historic preservation, prohibit conversion of housing in residential areas to commercial use not designed to serve local residents; instead, support redevelopment and rehabilitation of older neighborhoods to bolster stability and allow home occupations that do not degrade neighborhood appearance or livability, nor create significant environmental impacts.
Policy PL1.17: Evaluate development regulations and zoning to ensure they are clear, as simple as possible, and not redundant, and update if necessary.
Proposed amendments include the following:
1. Remove requirement for a permit. The City has not required a Home Occupation permit for many years.
2. Add a definition for “remote work” for those that work from home and are not operating a business
3. Add a definition for “principal residence”
4. Add an exception to allow mobile mechanics and detailers provided no work is done at the home occupation location
5. Further clarify existing code requirement that the location of the home based business must be the principal residence of the business owner
6. Allow on-site sales provided no product is visible from outside
7. Allow structural renovations only if they are consistent with the residential character and exterior appearance of the lot and dwelling
8. Remove special exceptions for the 300-400 block of West Bay Drive
9. Remove redundant sections that are addressed elsewhere for short-term rentals, adult day care homes, and family child care homes
10. Allow the business to be conducted in a non-residential structure on the same property
11. Remove prohibition of meeting on-site for off-site work
12. Remove the 500 square foot size limit for the business and retain the existing 25% of home limit
13. Allow for group counseling and substance use counseling
14. Minor updates such as changes to the department name, grammar, and changing the name of "home occupations" to "home based businesses"
15. Remove the limit of two off street parking spaces
16. Remove requirement for a Child Care Registration Form
Community members have expressed concerns about the use of homes for commercial lobbyists. To address the concerns, several changes are proposed regarding residency.
• A new definition for “principal residence” has been added. The existing code section that requires the location of the home based business to be the residence of the owner has been updated to be more clearly articulated.
• The Home Based Business Addendum (an affidavit that must be signed when applying for a business license) will be modified to more fully reflect the requirement that the home must serve as the principal residence for the operator of the business.
Special Exceptions for 300-400 block of West Bay Drive:
Several special exceptions are in the existing regulations that only apply to home based businesses located in the 300-400 block of West Bay Drive. These exceptions deal with signage, group counseling, non-resident employees, how much of the home is used for the business, and selling items on-site. These were added to the Olympia Municipal Code around 2000-2003. There is one home based business located in this two block stretch of single family homes. It was established as a media services business in 1988 with a home occupation permit. The business is still currently operating at this location and will be allowed to remain.
Staff has spoken with the owner of this business and explained why the code is being amended and what is proposed to be changed. Staff also explained that removal of these exceptions from the regulations will not affect the ability of the existing business to continue with their operations as they have been. Chapter 18.37 Nonconforming and Conforming Buildings and Uses of the Olympia Municipal Code provides for lawfully established uses to continue. This business will be able to continue utilizing the exceptions they are currently using.
Climate Analysis:
The proposed amendments are consistent with climate goals and efforts to reduce vehicle miles traveled. Providing for home based businesses allows small business owners to work from home. The regulations restrict the number of deliveries to the location of the home based business. When compared to a business in a commercial location, vehicle trips from customers, employees, and suppliers are generally lower for the home based business.
Equity Analysis:
The regulations apply citywide, or at least equally across the residential zoning district designations regardless of where they are in the city, with one exception. The 300-400 block of West Bay Drive is singled out, in the existing municipal code as an area where home based businesses have greater allowances than home based businesses located in the rest of the City of Olympia. The proposed amendments remove these special exceptions.
Neighborhood/Community Interests (if known):
Written comments received so far are attached to the staff report (see Attachments 5&6). The main known community interest relates to the use of residential homes by lobbyists in the South Capitol Neighborhood. Proposed amendments address these concerns by adding clarity to the existing requirement that the home based business location must be the principal residence of the business owner and adding a definition for “principal residence”. As these amendments will affect all residential neighborhoods throughout the City, careful consideration of all neighborhoods is warranted to ensure home based businesses avoid impacts to the surrounding residences.
Financial Impact:
Funding for this proposed work is being provided by the Community Development Department’s base budget.
Options:
1. Move to accept the proposed amendments to the Olympia Code for Home Based Businesses and forward to the full City Council for consideration.
2. Remand the proposed amendments to the Olympia Municipal Code for Home Based Businesses back to the Planning Commission for further consideration.
3. Modify the proposed amendments and move forward to the City Council for consideration.
Attachments:
Planning Commission Recommendation Letter
Second Draft Home Based Business Amendments
Second Draft Home Based Business Amendments (Annotated)
List of Changes to Second Draft
Public Comments (Part 1)
Public Comments (Part 2)
2025 Director’s Interpretation
Engage Olympia Webpage