| 9/15/2006 8:42:00 AM | Email this article • Print this article | Home businesses: An ideal situation that's not so ideal for some
by Ali Helgoth
Mail Staff Writer
Running a business from home seems to be the ideal situation for some Salida residents, but others feel it isn't ideal for their neighborhoods or competing professionals.
It seems to not matter where the business is located, some of the same issues often surface for residents who oppose home businesses - traffic, property value, the changing nature of the neighborhood and unfair competition.
Since November 2000, planning commission members approved seven day cares and seven home businesses, meeting minutes show.
With the approvals often comes debate among neighbors about what is best for neighborhoods. One of the major issues opponents of home businesses have is traffic.
During public hearings for two of the last four conditional use permits for home businesses, neighbors spoke against them because of potential increases in traffic.
To reduce that side-effect, planners often place stipulations on conditional use permits restricting business hours, drop-off times for children at day cares, allow owners to see customers by appointment only and banning addresses from advertising.
At the Aug. 30 planning commission meeting, members heard from residents who live near an established home business who said time restrictions on a nearby home business aren't being followed.
Although the business owner denied the accusations, neighbors said it illustrates regulations can be ignored if there is no one to police them, negating potential positive effects.
If stipulations set by the planners aren't followed, home business owners can face the possibility of permits being revoked. However, some neighbors said they aren't comfortable calling city hall or the police department to report violations.
Others worry a business located in a residential area will have an adverse effect on property values.
Chaffee County Assessor Joann Boyd said she isn't aware of any residential property undergoing a decrease in property value because of proximity to a home business, although it's not to say it couldn't happen.
If value of the property doesn't change, some worry the property itself will.
Some residents worry allowing home business in residential neighborhoods will change the fiber of the neighborhood, altering it into more business and less residential, contrary to city zoning ordinances and the comprehensive plan.
Salida City Planner Dara MacDonald said it is a misconception home businesses were intended to be prohibited based upon being conditional uses. Code provides for conditional use to keep the option open for some, but it allows for some control, she said.
Others worry about unfair competition.
A business located in a residential neighborhood accrues fewer expenses for cost of office space and utilities. It is mistakenly argued home businesses pay lower taxes.
Home businesses are taxed 29 percent for the area of the home used to run the business, Boyd said. It's the same amount levied on other businesses.
Home businesses often don't compete in the market in the same way as other businesses, MacDonald said.
They can't occupy more than 30 percent of the dwelling, MacDonald said, which places limitations on services they provide.
Home business owners often use it as secondary income, she said, influencing the amount of time devoted to the business.
Restrictions on hours and, sometimes, advertising, affects competitiveness of the business. Some home businesses are allowed to advertise via telephone number only.
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