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HomeMy WebLinkAboutmemo and attach for mobile food vendors 1 Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Brian Krueger, Associate Planner Tim McHarg, Planning Director Brit Fontenot, Economic Development Director SUBJECT: Discuss Process to Identify Alternatives for Mobile Food Vendors and Temporary Uses within the City MEETING DATE: Monday, November 21, 2011 AGENDA ITEM TYPE: Policy Discussion Item RECOMMENDATION: Staff recommends that the City Commission consider issues relating to temporary uses and mobile food vendor operations and give direction to staff: To convene a community wide stakeholders group to assess mobile food vendors and temporary uses including the potential for additional on-street regulations and a recommendation for a permitting process for off-street mobile food vendors and temporary uses on specific sites. BACKGROUND: The presence of mobile vending trucks, especially food vending trucks, has increased in recent years. This past summer, some business and property owners in downtown Bozeman complained that these trucks block visibility to their stores, disturb the business environment (generator noise, garbage, and lines blocking the sidewalk), and create unfair competition. This memo presents issues related to mobile food vendors operating on public streets and on private property, and offers options for the Commission to consider in developing a mobile vending truck policy. The focus of the report is on food vending trucks, although retail vending trucks would be subject to many of the same considerations. The trend of mobile retail “pop up” stores is also gaining traction nationally. This concept includes “constructing” a temporary retail space within another permanent venue or placing a shipping container modified into a portable retail store onto a vacant site. Staff recommends that the Commission consider all temporary and mobile uses as it works to develop a policy and regulations to add these new emerging uses into the City’s regulatory framework. Traditional food vending trucks have operated in this country for decades, servicing locations such as construction sites and factories where access to traditional restaurants is limited. These mobile food trucks are better known for offering simple fare, and for staking out a single, visible location where they may do business for an entire workday. As growth in the manufacturing sector has declined, fewer truck operators are making multiple short stops, as was the practice 30 or 40 years ago. 2 Food vending trucks offering a range of dining choices are a relatively new phenomenon whose popularity has spread across the United States. These newcomers are a distinct branch of the traditional food vending trucks. These vehicles are highly visible mobile kitchens that offer a broad range of innovative dining choices. Typically, food trucks park in popular commercial areas for varying lengths of time, then travel to a new location, often communicating the new destination to their customers through Twitter and other social media outlets. There are several types of food vending vehicles including: a. Push carts are non-motorized and may operate on sidewalks; b. Trailers are non-motorized and are commonly towed behind vehicles; c. Mini-trucks are small motorized trucks large enough for one or two people to operate with on-board power or refrigeration; and d. Food trucks are large, motorized trucks, considered a kitchen on wheels with on-board power, a refrigeration unit, and are large enough for three to four people to operate. Mobile Food Vendor Regulations Mobile push carts that commonly operate on sidewalks are managed today in the Downtown District by the encroachment permitting program administered by the Department of Public Works. While these uses are not the focus of this report, the City may consider updating these regulations if a more holistic approach is taken towards all mobile and temporary uses. Mobile vendors that operate on public streets within the City are governed by both State and local law. Title 61 of the Montana Code Annotated (MCA) “Motor Vehicles” and Chapter 36 of the Unified Development Code UDC) contain broad-based vehicle regulations, such as no parking zones, vehicle size and parking time limits, parking space, and preferential parking restrictions, which apply to all vehicles. All mobile vendors operating on City streets must comply with these generally applicable regulations. Any failure to comply with these restrictions may result in a parking citation. The MCA grants local governments’ significant authority to impose generally applicable parking regulations on public streets. The City is therefore authorized to impose additional parking regulations that affect all vehicles equally. However, it’s unclear if the MCA limits local governments’ ability to specifically regulate mobile food or non-food vendors on public streets unless there is a public safety concern. In other states courts have struck down mobile vending regulations enacted by municipalities that rely on other justifications, such as the need to protect local brick-and-mortar businesses from mobile competition. With respect to mobile food vendors, the Gallatin County Public Health regulations provide additional restrictions governing the vending of edible items. These regulations are required to be followed by anyone serving food to the public. Mobile vendors operating on City streets are also required to comply with Chapter 12 of the UDC, which states that these vendors must obtain a business license in order to operate within the City limits. 3 Mobile vendors operating on private property, off the public streets, would be subject to the Unified Development Code, Bozeman’s subdivision and zoning ordinance. The regulations that apply to mobile food vendors depend on how the vendor uses the property. Different regulations would apply if the vendor was parking in an existing parking lot or if the vendor was using a vacant site. How the regulations are applied is also dependent on the duration of the vending use on site and whether the site is conforming to applicable UDC standards. If the use is of a short duration and not according to a set pattern, the use would be considered accessory, with no regulations applying. If the use were to occur on a more permanent basis, with longer serving hours the regulations that apply to more permanent primary land uses may apply, including bringing the site into conformance with applicable UDC standards. Mobile Food Vending on Public Streets and Community Concerns Over the summer of 2011 City staff received complaints regarding mobile food vending trucks parking on and off the streets in the downtown central business district. The nature of the complaints voiced by businesses regarding mobile food trucks are similar to those heard in other communities around the country where mobile food trucks frequent popular areas with well- established brick-and-mortar businesses. The concerns raised by Bozeman business organizations generally fall within the following categories: public safety, community impacts, and economic impacts: Public safety concerns have been raised about drivers making illegal maneuvers to access vending trucks and pedestrians walking into the streets to avoid food-truck customers who are blocking the adjacent sidewalks. Another safety concern is that parked vending trucks may obstruct law enforcement officers’ views into area businesses. On Main Street, problems have been reported when patrons congregate around food trucks after the bars close at 2:00 am. Businesses report an increase in loud noise, fights and other malicious behavior as bar patrons congregate around food trucks. Community impact concerns focus on security, trash collection, and general public nuisance concerns such as odors permeating the surrounding area, noise created by generators, limited access to restroom facilities for both employees and patrons, ADA accessibility, and proximity and respect for the nearby community. The economic impact concerns include competition with established restaurants as a result of the lower prices that vending trucks can charge because they do not have the same overhead as brick-and-mortar restaurants (i.e., rent or impact fees). Mobile vending trucks may also occupy scarce on-street public parking for long periods of time. Off-Street Food Vending Operations The issues associated with off street food vending issues can also include the same impacts associated with public safety, community impact, and economic impact identified for on street vending uses. In addition, many off street vending operations can run contrary to Bozeman’s zoning ordinance. For example, trucks parked within established parking areas for an existing business can take up required parking spaces for that business. Customers coming to that truck 4 directed by a social media outlet could also take up additional parking spaces for that business and push customer parking onto the street. Often times, mobile vendors set up outdoor seating spaces on off street property that can block pedestrian circulation and ADA accessibility. More permanent mobile food vendors often believe that a vacant lot is a solution to those issues raised by parking within a parking lot of existing businesses. This is often times not accurate as vacant and underutilized parcels are often non-conforming with applicable UDC standards, such as permanent parking area surfacing, pedestrian sidewalks, safe access, and utilities to serve a more permanent operation. Policy Considerations for Commission There is an increasing demand for mobile food trucks and for on- and off-street areas where food trucks may congregate. The following are options that the Commission may wish to consider in developing policies surrounding on- and off-street vending truck activities. On-Street Vending Trucks On-street vending trucks, especially food vending trucks, respond to customers who want lower cost, grab-and-go, informal dining. However, public safety concerns may warrant closer management of where mobile vending trucks park in particular areas of the City. Additional changes, potentially requiring the amendment of State law, could allow the City to further regulate where mobile vendors can operate. To better manage the locations of on-street parking available to mobile vending trucks, where warranted, the following options, among others, are available: a. Create no-parking zones, reduce parking space size, and restrict time limits to prevent parking by any vehicle, including mobile vending trucks, in areas where parking is unsafe. For example, on streets in the Downtown Core parking regulations do not allow parking from 2 am to 7 am. The Police Department could be empowered to more rigorously enforce this requirement. b. Explore the adoption of a graduated parking citation system, which could allow the citation of vehicles parked in violation of posted regulations more than once per day at an ever increasing fine per offense. A graduated parking citation fine system for multiple citations could be applicable to all motorists and could eventually provide a disincentive to some repeat offenders, including those who may not be mobile vendors; and c. Research the MCA to determine if it needs to be amended to allow cities the authority to govern locations, time and duration of on-street vending operations. Off-Street Vending Trucks Off-street food vending programs have been well received in such diverse and populous cities as Seattle, Portland and Cincinnati, where they attract customers to underserved areas, create “eyes and ears” on the street, and provide entrepreneurial opportunities for start-up businesses on private property. 5 In Bozeman, off-street vending can occur on private and public property. If the Commission is supportive of allowing off-street vending trucks and moving forward with creating a permitting process, the following options, among others, are available: a. Food vs. Retail Vending Trucks: Special permits for off-street vending could be limited to food vending trucks to prevent the proliferation of retail vending trucks; b. Permitting: Staff could return with options for permitting off-street mobile vending operations, including administrative processes using a Use Permit, or through a discretionary process such as a Special Use Permit. Any permitting mechanism used would include special conditions or standards; c. Appropriate Area: Staff could return to Commission with recommendations related to locating off-street mobile food vending operations in specific zone districts, in areas of the City that are underserved or have few amenities, or only on specific sites; d. Business License Fees, Permits and Special Assessments; and e. Conditions: Conditions that could be considered in the granting of a permit for off-street food vending would need to be site-specific and could address the following: number of trucks and patron capacity, signage, noise, parking, provision of parking, restrooms, and other amenities, lighting, security, ADA accessibility, and frequency of the event. f. Public parking lot: Staff would consider allowing vendors to utilize a public parking lot after 6 p.m., giving each vendor equal opportunity and visibility. Other Temporary Uses Staff has received inquiries regarding more permanent temporary uses such as shipping containers outfitted as seasonal retail uses or sales offices. These shipping containers create some of the same concerns as mobile food vendors. Nationally the trend toward more transient uses and structures is pervasive. The City has long had regulations for the drive up coffee convenience uses commonly known as “java huts.” These are permitted through a special temporary use permit process and special standards for those specific uses. Staff has received inquiries to turn these huts into businesses where the primary product would be food cooked off site rather than coffee. The code does not have a framework for these more temporary uses and staff recommends that these other uses be considered as a subset of the framework for mobile food vendors as there are many crossover issues. One option to consider could include developing an accessory use process to permit these types of quasi-permanent uses on sites that are conforming to applicable UDC standards. Stakeholder group Staff recommends that the City convene a community wide stakeholders group to assess mobile food vendors and temporary uses including the potential for additional on-street regulations and a recommendation for a permitting process for off-street mobile food vendors and temporary uses on specific sites. The stakeholders group is proposed to consist of a large contingent of interested parties in these issues. Representatives of the following groups would be anticipated on any stakeholder group: Downtown Business Association, Mobile Food Vendors, city staff, Bozeman Parking Commission, City/County Health Department staff, Bozeman School District 7, Montana State University, large retail property owners (Gallatin Valley Mall, Stoneridge 6 Square, Bridger Peaks Town Center, etc.), Bozeman Deaconess Hospital, and any other identified interested organization. UNRESOLVED ISSUES: These issues will be identified as the scope of this project is defined by the Commission. FISCAL EFFECTS: None established at this time. ALTERNATIVES: Alternatives for Commission action have been identified for consideration and discussion with Staff and include: Convene a community wide stakeholders group to assess mobile food vendors and temporary uses including the potential for additional on-street regulations and a recommendation for a permitting process for off-street mobile food vendors and temporary uses on specific sites. Attachments: A. Other Community Approaches to Mobile Food Vending Report compiled on: November 17, 2011 ATTACHMENT A Other Community Approaches to Mobile Food Vending  Seattle, Washington – The City of Seattle encourages mobile food vending, especially in their Center City/Downtown urban centers. The benefits that are cited by offering low-cost, culturally diverse foods for people on the go, is that they typically complement – rather than compete – with sit down restaurants and give people more reasons to frequent local shopping districts. Other benefits include mobile food vendors bring a festive, pedestrian-friendly oriented feel to the area that thereby improves public safety. The city is considering revising its policies to encourage mobile food vending in the right-of-way such as eliminating the 200-foot setback for parks and identifying locations where mobile vending would be permitted during certain days and times.  Portland, Oregon – The City of Portland, which is known for its vibrant street food scene, partnered with a consultant to guide its policy on mobile food vending. The consultant studied Portland’s growing food cart industry to determine if carts are a possible avenue for furthering the city’s objectives for neighborhood livability and community economic development. The consultant’s report indicated that food carts have significant community benefits to neighborhood livability by fostering social interactions, walkability, and by providing interim uses for vacant parcels. Another key finding of the report was that 58% of business owners in downtown Portland found that food vendors increased foot traffic, and 66% of business owners citywide had a positive perception of food vendors.  New York City – In October 2010 the former privately owned restaurant, Tavern on the Green, became a public visitors’ center run by the New York City Department of Parks and Recreation. The iconic restaurant building is located in New York City’s Central Park and the city in an attempt to continue providing high-quality food to the public began a program allowing four food trucks to vend from the site. An outdoor terrace with tables and chairs is available for diners to eat the food they buy from the trucks. The food trucks pay rent to the City and the vending contracts are for one year with an option for a second year. One mobile food vendor reportedly is paying the city $100,000 for a one-year license. The vendors can apply to the state for a mobile liquor license so that they may sell liquor from the trucks. Park officials say alcohol has been sold successfully in other parts of the park without incident such as the Ballfields Café on the north side of the Heckscher Ballfields, the Mineral Springs Café and the Boathouse. Drinking will only be allowed in the terrace area, trucks will leave by 10pm and no music will be allowed.  Denver, Colorado – By December 2010, more than 150 mobile food vendors had been licensed in Denver, Colorado. The City is in the process of creating a Food Truck Guide, a document which pulls together all of the existing regulations affecting the mobile food industry in a clear and concise format. Civic Center Eats had been a summer 2010 event that occurred on Tuesdays in Civic Center Park. The Civic Center Conservancy, a 501(c)(3) non-profit organization has a permit with the City to create an outdoor food court in Civic Center Park on Tuesdays. As a means to activate Civic Center and generate revenues to support the Park, the City had contractually granted the Conservancy with the ability to create an outdoor food court using mobile food vendors. The City amended its agreement with the Conservancy to allow up to four mobile vendors into Civic Center Park on days that the Park is not otherwise permitted for events. The Conservancy is an organization that is focused on helping the City and County of Denver restore, enhance and activate Downtown Denver’s historic Civic Center Park.  Washington, D.C – While in most cities the main opposition to mobile vending trucks may be the brick-and-mortar businesses, in the District, however, there is more of a hierarchy; the area’s inline businesses as well as the old-school street carts and the depot owners who represent them all oppose mobile vending. The arguments against mobile vending include: (1) the concept of allowing commercial activity at a parking meter is inconsistent with public policy that parking meters are for customers, not commercial activity or employees; (2) allowing commercial activity at parking meters which are not appropriate locations, directly competes with the business needs of the traditional inline businesses; (3) unfair disparity in sales tax rates – inline businesses pay a percentage on sales while trucks pay a flat $1,500 annually; and (4) although roadway vending is legal under the ice-cream truck law, the city is violating its own law, the Vending Regulation Act of 2009 which says that no vending shall be allowed from a sidewalk, roadway or other public space unless the person holds a vending site permit. In June 2010, the District of Columbia Department of Consumer and Regulatory Affairs (DCRA) released proposed vending regulations which govern vendor operations, designates sidewalk, roadway, and area vending locations. The regulations also provides for the creation of vending development zones and vending within the boundaries of licensed special events.  Cincinnati – Wanting to join the national mobile food movement, the city of Cincinnati evaluated its ordinances and realized that mobile food vendors are only permitted to operate in the city’s central business district (CBD) by paying for a private parking lot, which is expensive and not always available. The city discovered that mobile food vendors pay from $7 to $15 per day to park in private lots. The City proposed creating a CBD mobile food vending permit that would allow vendors access to three designated areas in the CBD to vend. Permits for the public locations cost $400-$800 depending on location and size of the vendor’s operation. The City created a one-year Mobile Food Vendor Pilot Program to access consumer demand that began on June 28, 2010 and runs until June 27, 2011. In October 2010, a review of the program showed that the public enjoyed the mobile food vendors and thought the program was good for the area. Overall business owner feedback was also positive because it brought more people to the area and sparked excitement. One complaint from a law firm said that the mobile food vending program eliminated parking spots for their clients.  Atlanta Street Food Feasibility Study – The study was conducted by a team of three graduate students in the School of City and Regional Planning at the Georgia Institute of Technology. The Atlanta Street Food Coalition partnered with Central Atlanta Progress and Lanier Parking Solutions to support the Study. The Study is organized into four sections: Policy; Urban Design; Economic Impact, and; Food Environment. The Study promotes street food as a viable business model and a contributor to the viability of city streets and public space.