TOWN COUNCIL WORKSHOP AGENDA DOCUMENTATION

Transcription

1 TOWN COUNCIL WORKSHOP AGENDA DOCUMENTATION PREPARATION DATE: November 13, 2013 MEETING DATE: December 16, 2013 S UBJECT: SHORT TERM RENTALS SUBMITTING DEPARTMENT: Legal DEPARTMENT DIRECTOR: Audrey Cohen-Davis PRESENTER: Audrey Cohen-Davis PURPOSE OF WORKSHOP ITEM This item was continued form the November 18, 2013 Workshop. The purpose of this item is to further discuss the issue of illegal short terms rentals in the community and a potential ordinance regulating such activity. DESIRED OUTCOME Staff is seeking direction from Town Council on parameters of an ordinance regulating illegal short term rentals in the Town of Jackson. BACKGROUND/ALTERNATIVES On July 1, 2013 this item was presented at the Joint Information Meeting for discussion on whether a joint Town and County effort to address this issue was desired by both bodies. The outcome of the meeting was that a joint effort was not desired as the County did not wish to pursue the matter further. Town Council directed staff to identify further actions that may be taken to address this issue and place the item for discussion at future Town workshop. On August 19, 2013, a Town Council workshop was held with the Town Council to further discuss the Comprehensive Plan and LDR s which set forth policies and regulations designed to confine lodging to appropriate areas. Illegal short term rentals disrupt established community character objectives such has maintaining stable neighborhoods, and providing workforce housing, while acting as a disadvantage to lawful lodging uses. It was further discussed that recent Town discussions regarding the future of the Lodging Overlay with the public, Planning Commission and Town Council have raised the issue of properties within the Town being used as short term rentals without the required approvals. The Land Development Regulations define short term rentals as follows: Residential short-term rental. Residential short-term rental means the rental of all or a portion of a house, guest house, townhouse, condominium, apartment, or other residence for less than thirty (30) days. Further discussion was held at the August 19 meeting that within the Town only properties within the Lodging Overlay boundary that have been approved for short term rental are allowed to operate as such. Specifically, section 2250 of the LDR s states All residential uses outside the Lodging Overlay (LO) District shall only be used for residential purposes. No residential uses outside the LO District shall be rented for less than thirty (30) days. Accordingly, only legal non-conforming properties outside of the Lodging Overlay that have maintained their property as a short term rental since 1994 with no 12 month are exceptions to this. Staff noted that being located inside the Lodging Overlay boundary does not automatically allow the use of the 1

2 property for this use it must be approved for this specific use meeting all planning, building, fire and other requirements. It was further presented at the August 19 meeting that the practice of illegal short term rentals generates 3- key policy considerations: First, short term rentals detract from residential community character due to the revelry, transient nature of the use and general nuisance. Second, these properties confound the Comprehensive Plan objectives of confining lodging uses to the Lodging Overlay Zone or resorts. These illegal rentals also deprive the community of lodging tax dollars and compete with properties that are compliant with applicable regulations. Third, this practice drives up the sales price of properties by increasing the return on investment and removes these properties from the workforce housing supply. Staff identified the following policy statements from the 2012 Comprehensive Plan for consideration as part of this discussion: Policy 3.2.c: Limit lodging to defined areas Lodging and short-term rental use will continue to be limited to areas within a Lodging Overlay and existing Planned Resort in Town, and the existing County Planned Resorts and Planned Unit Developments where it is entitled. The potential for lodging and short-term rental development is important to the community s tourism economy, but it is not appropriate throughout the Town and County. Concentration of lodging locates short term accommodations in areas where guests can access visitor-oriented amenities without a vehicle, while protecting the remainder of the community s residential, locally-oriented, and Rural Areas from expansion of tourist-related amenities. Policy 4.2.f: Maintain lodging as a key component in the downtown A key element of the 1994 Comprehensive Plan was the establishment of the Lodging Overlay District. The purpose of the overlay was to concentrate lodging into the downtown core, where guests can access touristorientated amenities without a vehicle. In addition, the overlay was intended to protect the remainder of the community from expansion and sprawl resulting from tourist and lodging amenities. The community continues to support the original intent of the overlay. Expanding on the goals of the 1994 Plan, this Plan supports the provision of a variety of year-round lodging types that encourage active management for nightly year-round occupancy. Policy 4.3.a: Preserve and enhance Stable Subareas The characteristics of Stable Subareas will include a predominance of owner-occupied units, a variety of residential unit types, including workforce housing, and some limited nonresidential uses. Residents of these Subareas should be able to walk to local convenience commercial that should generally be within ¼ to ½ mile of their residences. Public spaces will typically be provided in public parks. Complete streets, including options for all alternative transportation modes, will be provided throughout. The consolidation of multiple lots to create larger single family homes is inconsistent with existing character and with our growth management goals. Policy 5.1.a: House at least 65% of the workforce locally The community s primary housing goal is to ensure that at least 65% of the local workforce lives locally. Other resort communities in the Rocky Mountains facing housing affordability issues have identified the loss of a resident workforce as the primary indicator of their lost sense of community. Regular monitoring of workers commuting from neighboring communities will indicate changes in the percentage of the local workforce living locally and inform housing programs, policies, regulations, and incentives that ensure we meet our primary housing goal. Policy 5.3.b: Preserve existing workforce housing stock 2

3 Over 80% of current workforce housing is market housing (See Appendix B). Preserving the existing workforce housing stock is critical to achieving the community s housing goal. The resale and/ or redevelopment of existing market workforce housing and the combination of small lots to build larger houses are examples of possible net losses of housing that is affordable to the local workforce. The Town and County will explore a combination of tools to restrict and otherwise preserve the future affordability of existing workforce housing stock to avoid a shortage of housing that is affordable to the workforce. However, these tools to preserve existing workforce housing should not inadvertently deplete market workforce housing opportunities. Ultimately Council considered: 1) Continuation of the current three step notification process; 2) Notification to the State Department of Revenue (the State) and Internal Revenue Service (IRS); 3) New Property Owner Letter; 4) Posts on websites; 5) Active Investigations; 6) Town of Jackson Tip line/hotline; and 7) Create Separate Town Ordinance for Short Term Rentals. As straw poll was taken by the Town Council with regard to moving forward with an ordinance. FOR TODAY S MEETING: In order to prepare an ordinance, there are several questions for the Town Council as follows (see also attached chart re how CAST members regulate Short-Term Rentals): 1) Where does the Town Council wish to allow residential short-term rentals? o It appears based upon the current LDR s and the 2012 Comprehensive Plan, that residential short-term rentals are confined within the Lodging Overlay District, subject to certain terms, conditions, and requirements. o Does the Town Council wish to allow residential short-term rentals outside of Lodging Overlay? 2) Does the Town Council want a separate business license for residential short-term rental businesses? (Such can be added via a separate ordinance under the Business license section of the Municipal Code). o Currently, the Municipal Code Section requires a business license fee for businesses that lease 3 or more dwellings or apartments for residential purposes. This fee is $100. o With the exception of Avon, Colorado, all CAST members require a business license. 3) Does the Town Council wish to require a Vacation Rental Permit and Application with the Town? o The City of Aspen, Maui County, and many of the CAST member towns (Aspen, Durango, Estes Park, Glenwood Springs, Silverton) require a Short Term Rental Home Permit. o The City of Aspen has an annual requirement for such a permit, and each owner must submit a application that requires the following information: name of owner address of rental property (multi-family units within the same building that use the same owner representative may apply for one consolidated vacation rental permit). whether owner has obtained or applied for a City of Aspen Business License, and requires business license #. if applicable, whether owner has notified the Home Owner s Association regarding application for a vacation rental permit. name of the designated owner representative for the rental and the address (which must be located within the Roaring Fork Valley). The ordinance requires that the designated representative of the owner be on call to manage the property 3

4 whether the owner agrees to collect and to remit all applicable sales and lodging taxes. o This permit can be non-transferable, with an exception if upon death the property is transferred to an immediate family member. 4) Does the Town Council wish to have a standard for a parking requirement? o adequate off-street parking or on-street parking 5) Does the Town Council wish to have a trash storage requirement? o requiring that vacation rentals shall provide clearly defined trash and recycle areas. 6) Does the Town Council wish to require notice to neighbors? o requiring, for example, mailing notice to neighbors on adjacent parcels notifying them that a Vacation Rental Permit has been issued, and the name and contact information for the local owner representative (with an affirmative responsibility to re-notify neighbors upon a change in the local owner representative). 7) Does the Council wish to have a noise provision? o Can be cross-referenced to that currently in the Municipal Code. 8) Does the Town Council wish to require a sign for an approved short-term rental home? o Maui, for example, requires a two-foot square sign that shall be displayed along the main access road of the short-term rental home identifying the valid short-term rental home permit, and a 24-hour telephone number for owner or manager. 9) Does the Town Council wish to limit the number of permits for short-term rental homes? o Maui, for example, requires that the council review the community plan short-term rental restrictions 10) Does the Town Council want to regulate advertising? o For example, some towns require that any advertising include the permit number issued to the permit holder. Others require that reservation websites include a working link to the short-term rental laws or policies. 11) Enforcement provisions: o The City of Maui includes a provision stating that Advertising that offers a property as a short-term rental shall constitute prima facie evidence of the operation of a short-term rental home on the property and the burden of proof shall be on the owner, operator, or lessees of record to establish that the subject property is being used as a legal short-term rental home or is not in operation. This will greatly assist with enforcement. o It also includes a provision stating that Any communication by a property owner, operator, or lessee to any person where the owner, operator, or lessee offers their home for rent as a short-term rental home on the property shall constitute prima facie evidence of the operation of a short-term rental home on the property and the burden of proof shall be on the owner, operator, or lessee of record to establish that the subject property is being used as a legal short-term rental home or is not in operation. This will also greatly assist with enforcement. 12) Other: 4

5 FISCAL IMPACT Fiscal impact can be looked at as there is a current loss in sales tax revenue to the Town if property owners are not collecting sales tax on short term rentals. STAFF IMPACT Depending on the approach(es) decided upon by Town Council there may be significant impact to Town staff in the Planning and Building, Legal, Finance and Police Departments. LEGAL ISSUES On-going. ATTACHMENTS Short Term Rental Chart of the Colorado Association of Ski Town (CAST) regulations. SUGGESTED MOTION I move to direct staff to pursue a separate Town Ordinance for Short Term Rentals with the following parameters: 1) 2) 3) 4) 5) 6) 7) 5

6 Colorado Association of Ski Towns Regulation of Short Term Rentals Local Emergency Contact? Permitted in all Business Sales tax Sales/Lodging Parking Trash Noise Notice to CAST Member Permit? zone districts? license? license? Tax Provision? Req.? Req.? provision? HOA? Aspen Y Y Y Y Y Y N Y Y Y Avon N N N Y Y N N N N N N Basalt Y Y Y Breckenridge N Y Y Y N Y Y Y Y N N Notice to Neighbors? Crested Butte Y Dillon Y Y Durango Y N Y Y Y Y Y Y Y Y Estes Park Y N Y Y Y Y Y Y Y N N Fraser N Y Y Y Y N N N N N N Frisco Y Y Glenwood Springs Y Y Y Y Y Y Y N Y N N Grand Lake N N Y Y Y Y Y Y Y Y Y Minturn Y Mt. Crested Butte Y Mountain Village N Y Y Y Ouray N Y Y Silverthorne Y Y Silverton Y N Y Y Y Y Y Y Y N Y Snowmass Village Y Steamboat Springs N N Y Y Y Y Y Y Y N Y Telluride N N Y Y Y Y Y Y Y N N Vail Y Y Winter Park Y Y