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CARMEL BOARD OF ZONING APPEALS HEARING OFFICER
DEPARTMENT REPORT
MONDAY, OCTOBER 28, 2024
(SE) Custer Short Term Residential Rental.
The applicant seeks the following Special Exception approval for a STRR unit:
1. Docket No. PZ-2024-00138 SE UDO Section 2.09 Permitted Uses, Residential Special Exception.
The 2.07-acre site is located at 2525 E Smoky Row. (not part of any subdivision). It is zoned
R2/Residence. Filed by Mark Nathaniel Custer, owner.
General Info:
• Petitioner seeks approval to rent out his entire dwelling, in order to operate a Short Term Residential Rental
(STRR) use. (Familiar STRR terms are Airbnb, VRBO, FlipKey, HomeAway, etc.).
• Per the zoning ordinance, a residential special exception approval from the BZA Hearing Officer is required
for STRR’s located in the R2/Residence zoning district.
• The subject residential parcel is not located in a residential Subdivision. Single family homes surround the
subject site to the east, and to the north is the stormwater detention area for the Carmel Highschool Stadium.
To the west is vacant wooded land owned by the School. To the south is a creek and floodplain.
• On-street parking is not allowed; however, off-street parking on the driveway is provided.
• Please see the Petitioner’s info packet for more detail on the special exception request.
Analysis:
• The Carmel Unified Development Ordinance (UDO) defines Short Term Residential Rental Unit as: A
Dwelling, or portion thereof, that is rented or leased to transient guests by a Permanent Resident of the
Dwelling for a period of less than thirty (30) consecutive calendar days.
• The short term residential rental ordinance was adopted by City Council in January 2018, under ordinance Z-
629-17. In addition, City Council just adopted resolution CC-03-18-24-03 on 03/18/2024 which allows for 30
specific dates in 2024 where this STRR ordinance is not enforced (freebie dates), such as major holiday
weekends and very large local events.
• Under UDO Section 5.73.A, the purpose of the ordinance is to benefit the general public by minimizing
adverse impacts on established residential neighborhoods and the owners and residents of properties in these
neighborhoods resulting from the conversion of residential properties to tourist and transient use.
• UDO Section 5.73.B spells out the Special Exception Eligibility: A Permanent Resident of a Dwelling located
in a Residential District may use the Dwelling as a Short Term Residential Rental Unit if: The Permanent
Resident applies for and is granted a Special Exception, pursuant to Section 9.08: Special Exception (Group
Homes and Short Term Residential Rentals) hereof (among other requirements).
• The UDO Definition of “Resident, Permanent” is a natural person who occupies a Dwelling for at least sixty
(60) consecutive days with intent to establish the Dwelling as his or her primary residence. A Permanent
Resident may be an owner or a leasee.
• UDO Section 5.73.C goes on to list the Required Information for Application: Both the initial application and
any renewal application for a Special Exception permit shall contain the following: Information sufficient to
show that the applicant is the Permanent Resident of the Short Term Residential Rental Unit…. Permanent
residency shall be established by showing that the Unit is listed as the applicant’s residence on at least two (2)
of the following: motor vehicle registration; driver’s license; voter registration; tax documents showing the
unit as the applicant’s primary residence for a standard homestead credit; or utility bill. (A renewal
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application shall contain sufficient information to show that the applicant is a Permanent Resident and has
occupied the unit for at least two hundred seventy-five (275) days of the preceding calendar year.)
• UDO Section 9.08 states that a Special Exception shall be considered as an exception to the uses allowed
under the UDO, and thus the original application for a Special Exception shall not generally be entitled to
favorable consideration; however, an application for the renewal of a Special Exception shall generally be
entitled to favorable consideration.
• UDO Section 9.08 lists out the criteria for the Basis of Review: A Hearing Officer, in reviewing a Special
Exception application, shall consider the needs and circumstances of each application and shall examine the
following items as they relate to the proposed Special Exception:
1. Surrounding zoning and land use;
2. Access to public streets;
3. Driveway and curb cut locations in relation to
other sites;
4. Parking location and arrangement;
5. Trash and material storage;
6. Necessary exterior lighting; and
7. Protective restrictions and/or covenants.
• UDO Section 9.08 also lists out the criteria for the Basis of Approval or Rejection: A Hearing Officer, in
approving or rejecting a Special Exception application, shall base his or her decision upon the following
factors as they relate to the above listed items (Basis of Review) concerning the proposed Special Exception:
1. The economic factors related to the proposed Special Exception, such as cost/benefit to the community and
its anticipated effect on surrounding property values;
2. The social/neighborhood factors related to the proposed Special Exception, such as compatibility with
existing uses in the vicinity of the premises under consideration and how the proposed Special Exception
will affect neighborhood integrity; and
3. The effects of the proposed Special Exception on vehicular and pedestrian traffic in and around the
premises upon which the Special Exception is proposed.
Remaining Review Comments:
• All planning/zoning review comments have been addressed.
Final Comments:
• The Carmel Code Enforcement Dept. let us know that this petition is before the BZA now because they sent a
violation letter to the owner notifying them that they were operating a short term rental without approvals.
Findings of Facts:
• Please refer to the Petitioner’s Findings of Facts.
Recommendation:
• The Dept. of Community Services (DOCS) recommends consideration of this petition.
• The Dept. of Community Services (DOCS) also recommends the adoption of the Findings of Fact, if the
petition is approved.
• Please note if the special exception petition is approved, it is only valid for 1 year.