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For the Commission's reference, staff has included State definitions that pertain to the cottage food operation law in Exhibit D. Process Of the three regulatory options allowed by the State, staff is recommending the second option, the non-discretionary permit. This process will allow the City to set clear requirements for information to be submitted with each application for a proposed cottage food operation and apply standards relating to spacing, traffic, parking and loading, noise, signage and outdoor sales, and dining. Cottage food operations would be subject to a staff level permit process that will allow staff to ensure that community interests and City standards will be protected. Due to the similarities of a large family home daycare (i.e., a small scale "commercial use" within a residence), the proposed language of the proposed chapter (18.108) follows the "application" and "standards" provisions for large family daycare homes, with modifications specific to cottage food operations. For example, the application requirements (Section 18.105.030 of Exhibit A) include: County food permit or registration (Section D of Exhibit A); types of food products and preparation (Section E of Exhibit A); persons working at the operation (Section F of Exhibit A); and types of sales (Section G of Exhibit A). With the information submitted with each application for a cottage food operation, staff can determine if the standards in Section 18.105.070 (Exhibit A) are met. Performance Standards The following are the recommended performance standards for cottage food operations with staff's analysis thereafter: A. Spacing. No cottage food operation shall be approved if: (1) the property line of the site of the proposed use is located within 300 feet and on the same street or the corner of a cross-street of the property line of any single family home where another cottage food operation is located; or (2) if the proposed use is located within the same building of an apartment complex or other multi-family housing (i.e. condominiums or townhomes) where another cottage food operation exists. Staff analysis: Staff proposes a spacing standard of at least 300 feet separation between each cottage food operation in a residential neighborhood because parcels are, generally, 65 feet in width. With a minimum 300 foot separation, such operations would be separated by about five homes along the same street which would help alleviate any parking and/or traffic impacts. Furthermore, as State law allows cottage food operations in all residences, including apartments and other multi-family housing, staff proposes a different standard in apartments and multi-family housing due to greater concerns regarding parking, noise, and impacts on neighbors. For apartment complexes, the spacing P12-1753, Cottage Food Operations Planning Commission Page 4 of 8