City planning commission weighs balance between residential zoning and in-home businesses

The City Planning and Zoning Commission reviewed a conditional use permit (CUP) request on Wednesday, April 1, for a Grand Marais homeowner in an R-1 residential zone to operate a home-based nail studio.

Grand Marais resident Michelle Maldonado Mendez submitted the CUP request and plans to operate her business, Luxe Nails by Michelle, from her single-family home on 2nd Avenue W. The business would offer manicure services by appointment in a small nail studio in her home.

During the April 1 planning and zoning meeting, Maldonado Mendez described her business as “low-impact” with scheduling a small number of clients per day. She said that, given she is the only employee, she will have only one client at a time and doesn’t plan to have more than three appointments per day.

The Wednesday meeting drew several public comments from surrounding neighbors, some in support of the home-based business, and some in opposition.

Neighbors who opposed the CUP request raised concerns about operating a business in an R-1 residential zone. The R-1 permanent residence district is intended to provide a healthy, safe, and attractive residential environment and protect property values, according to city ordinance.

Neighbors directly across the street from Maldonado Mendez said during public comment that they don’t feel that any business should be allowed in R-1 zoning, as it doesn’t align with the intended purpose. Concerns were also raised about the number of clients per week, increased traffic on 2nd Avenue, off-street parking, and the potential for decreased property values.

During the meeting, Maldonado Mendez addressed some of the concerns raised and answered questions from planning and zoning commissioners.

A neighbor to the immediate south of Maldonado Mendez spoke in support of the CUP request, citing the challenges of a young family trying to make ends meet in Cook County and having to work multiple jobs. The home-based business would allow the applicant, who is a mother, to work from home and support her family with a low impact on the rest of the neighborhood.

Planning and Zoning Commissioner Ben Peters spoke about the board’s responsibility to balance the intended purpose of the R-1 residential zone with a homeowner’s desire to supplement income to afford to live in Grand Marais by starting a small business in their home.

Peters acknowledged the concerns raised by neighbors who opposed the CUP.

“I do think we have an obligation to listen to the neighborhood because they do know best what their neighborhood needs and doesn’t need,” Peters said.

Peters said that while the planning commission has approved similar requests in the past, he has concerns about this CUP, given that several neighbors have voiced concerns and submitted public comments.

Planning and Zoning Commissioner Michael Garry said he was interested in attaching additional conditions to the CUP request, such as limiting the number of clients and creating a designated parking space in the driveway.

Peters made a motion to deny the CUP request. The motion was not seconded and failed.

Garry then made a motion to approve the CUP with conditions requiring a designated client parking space in the driveway, limiting appointments to before 3 p.m., and allowing only one client at a time. Planning and Zoning Commissioner Anton Moody seconded the motion.

The commission approved the request in a 2–1 vote, with Garry and Moody in favor and Peters opposed.

The CUP request will now move on for review and consideration from the Grand Marais City Council at its next meeting on April 8. View the April 1 Planning and Zoning meeting here.

Kalli Hawkins April 2, 2026