Update On Home Based Businesses And RORZOR

>Rockville Central friend Rich Gottfried, founder of the community group that, I think, has one of the best names around, passed this information along. His group is the Home Based Business Action Team, or HBBAT — silent “h” so it’s pronounced “Bee-Bat.” I love that.

Anyway, this group’s chief purpose is to ensure that the needs of small, home-based businesses in Rockville remain at the forefront throughout the process (called “RORZOR”) that is slowly resulting in a new zoning law.

Rich reports:

On Wednesday, March 5, 2008, the new Draft Zoning Ordinance (DZO) Article 9 Section 7 on Home Based Businesses was discussed during the City of Rockville Planning Commission work session at City Hall from 9:15pm until 11:00pm.

After testimony from the HBBAT as well from the general public, the Planning Commission endorsed a significant number of the HBBAT’s recommendations to change the Draft Zoning Ordinance. The Planning Commission directed City Staff to re-write the language of the ordinance with regard to home based businesses.

HIGHLIGHTS:

1. A NO IMPACT home based business enterprise category was added, with up to 10 visits per week, no registration and no fees to City of Rockville.

2. The requirement for all home based businesses to log visits was ELIMINATED from the regulation.

3. A variance for a home based business may be granted by filing a special exception with the Planning Commission and gaining the approval of the Board of Appeals

4. The section on inspections of home based businesses will be rewritten. Although a homeowner may voluntarily allow a City inspector to enter a home if the City decides to conduct a home inspection, the homeowner also has the right to deny access. If the homeowner denies access to the inspectors, the City would have to obtain a warrant to enter the home. The Planning Commission found that the section as written did not follow good practice in law. [Comment from Commissioner Johnson “We still have to follow the Constitution of the United States.”]

Other areas in the regulation that still need to be addressed:

1. A definition of what constitutes a complaint and on whom the burden of proof rests is still under discussion.

2. Area Limitation is still under discussion. No decision has been made. Current limitation maxes out at 300sf.

3. Signage is still under discussion. No decision has been made. Staff is resisting changes to the sign ordinance, which is a different part of the DZO.

4. Use of Accessory Buildings is still under discussion. No decision has been made.

5. Other topics:

a. Staff was instructed by the Planning Commission to come back with suggestions in the areas of parking, grandfathering, and nonconformities

b. Number of home based businesses in one home will not be limited to only 2, but the total number of visits will be the limiting factor.

c. There will be no exemptions for “upper class” businesses such as doctors, dentists and lawyers, which require a degree and a license to practice. Categorization for all businesses will be based on the number of visits.

WHAT WE LEARNED:

The City CAN charge a registration fee. The Mayor and Council have the authority to set the fee amounts. The Planning Commission will recommend a nominal fee – let’s see what the Mayor and Council actually do.

The City probably CAN’T charge an INCOME TAX on HBBs without negotiating that authority in Annapolis. The City probably CAN charge an IMPACT TAX – again this authority rests with the Mayor and Council.

The RORZOR members on the Planning Commission denied that it was RORZOR’s intent to infringe on HIPAA regulations with the log of visits.

The section as written on home inspections did not follow current good practice in law for defining the authority to inspect – this will be changed by the Planning Commission.

Repeats of the broadcast can be seen on cable channel TRC 11 (check the City’s website for times).

The City Staff presented a power point slide of the questions they had for the planning commission as well as their recommendations to the planning commission in paper format (see link to staff’s recommendations).

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