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Commission discusses tiny "cottage" homes, recommends variance route and broader zoning update

Planning Zoning Commission · July 17, 2026
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Summary

Commissioners debated whether cottage (tiny) homes fit the existing zoning code, noted minimum lot and square‑footage standards, and recommended pursuing variances for current applicants while planning a comprehensive zoning update, possibly with outside consultants or grant funding.

Tell City's Planning Zoning Commission discussed cottage houses (very small dwellings) and whether they are permissible under current zoning, concluding the short term path is variances while the longer term fix is an amendment to the zoning ordinance.

Commission members noted the zoning code includes minimums (R1, R2, R3 designations) with square‑footage and lot‑size requirements that do not contemplate one‑story, sub‑1,000‑square‑foot dwellings in many zones. One commissioner said small homes "don't meet the existing size requirements based on our lot sizes," and another observed the current ordinance is outdated and lacks specific language on building stories versus square footage.

The commission agreed applicants can pursue variances now, which require neighbor notification and public input. Members suggested that a comprehensive ordinance rewrite would better address cottage-house development, and discussed hiring an urban‑planning consultant or seeking Region 15 or grant funding to support the work. Past informal cost estimates to update codes were mentioned in the record as roughly $35,000 to $50,000, but commissioners noted grant availability must be checked.

Several members urged the commission to avoid piecemeal fixes and instead fold cottage‑house language into a broader zoning update; they directed a commissioner to contact relevant parties to begin cost estimates and identify funding sources. No ordinance change was adopted at this meeting; commissioners recommended staff and volunteers continue research and bring a proposal to the council for budgeting consideration.