HomeMy WebLinkAbout08-08-16 CC Mtg - A4. Ordinance 1958, Short Term Rental Interim Ordinance
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Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Greg Sullivan, City Attorney Karen Stambaugh, Assistant City Attorney
SUBJECT: Ordinance 1958 – Interim Zoning Ordinance regarding Extended Stay Lodging (Short Term Rentals)
MEETING DATE: August 8, 2016
AGENDA ITEM TYPE: Action
RECOMMENDATION: Conduct Public Hearing, consider protests, and determine whether to adopt Ordinance 1958.
RECOMMENDED MOTION: Having conducted a public hearing, and considered public
testimony and any protest, I hereby move to adopt Ordinance 1958 repealing and
suspending extended stay lodging and other similar uses such as short term and vacation rentals as a conditional use in R-1, R-2, R-S and NEHMU zoning districts for a period of six months or until such time as the City completes its study and acts to amend the
municipal code or reinstate the conditional use.
BACKGROUND: Over the past several months the City Commission has considered the issue of the increase in the number of short term rentals throughout the City and in particular
Bozeman’s lower density residential zoning districts. The Commission has had two discussions
on this issue: at its regular meeting on July 11, 2016 and a continuation of that discussion on July
18, 2016. The staff memorandum from those policy discussions can be found here. On July 18, 2016 the Commission requested City staff draft an interim zoning ordinance that
would prohibit such uses in specific zoning districts until such time as the City was able to study
the effects of the increasing number of short term rentals on existing residential neighborhoods.
The authority to adopt an interim zoning ordinance is found at 76-2-306, MCA:
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76-2-306. Interim zoning ordinances. (1) Except as provided in 76-2-340, the city or town council or other legislative body of the municipality, to protect the public safety,
health, and welfare and without following the procedures otherwise required prior to the
adoption of a zoning ordinance, may adopt as an urgency measure an interim zoning ordinance prohibiting any uses that may be in conflict with a contemplated zoning
proposal that the legislative body is considering or studying or intends to study within a
reasonable time. (2) An interim zoning ordinance may be applicable only within the city limits and up
to 1 mile beyond the corporate boundaries of the city or town and takes effect upon
passage if a hearing is first held upon notice reasonably designed to inform all affected parties. A notice must be published in a newspaper of general circulation at least 7 days
before the hearing.
(3) An interim zoning ordinance is no longer in effect 6 months from the date of its adoption. However, after notice pursuant to 76-2-303 and pursuant to public hearing, the
legislative body may extend the interim zoning ordinance for 1 year. Any extension requires a two-thirds vote for passage and becomes effective upon passage. No more than two extensions may be adopted.
The above statute provides a mechanism to put a zoning requirement in place “without following the procedure otherwise required prior to adoption of a zoning ordinance” such as a hearing
before the Zoning Commission. The interim zoning ordinance requires only one read and is
effective upon adoption. It can be in place for no more than six months; however, the
Commission may extend the interim ordinance for an additional one year. Any extension requires a 2/3 majority vote, and no more than two extensions may be adopted. The initial vote to adopt the interim ordinance requires a simple majority vote. The hearing on the interim
ordinance must be noticed at least once and no less than seven days prior to the public hearing.
The protest provisions of state law related to adoption of zoning regulations apply.
Nothing in this ordinance would affect the zoning of any extended stay lodging use whose use is lawful as of the effective date of this ordinance.
The ordinance would, however, affect applications for conditional use permits for such uses that
have been submitted to the city but not yet acted upon. Pursuant to 38.34.080.B, BMC, review of zoning applications occur under regulations in effect at the time an application is deemed complete. However, the same provision indicates an interim zoning ordinance applies to a zoning
application “without limitation to the date of completeness of the application until final action
has been taken on the application.” As such, an interim zoning ordinance supersedes the
completeness evaluation and a pending application will be subject to the interim zoning ordinance even if the application has been deemed complete. See also 7-21-1003(2), MCA (providing an exception from the regulatory certainty date for interim zoning ordinances).
Should the Commission adopt this ordinance, it will be effective for no more than six months or
until the Commission adopts alternative zoning provisions regarding extended stay lodging/short term rentals in these zoning districts.
Notice of this interim zoning ordinance was published in the Bozeman Daily Chronicle on
Sunday July 31, 2016.
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UNRESOLVED ISSUES:
None identified regarding provisional adoption of this Ordinance. The City Manager has previously provided suggestions regarding the process for studying the effects of short term
rentals on the City. Ordinance 1958 provides direction on proceeding with such process.
ALTERNATIVES: As suggested by the Commission. Should the Commission wish to consider an exception to allow applications for a conditional use permit for an extended stay lodging facility that have been deemed adequate for review to be reviewed on its merits the
Commission should consider adding the following to the end of Section 9 of Ordinance 1958:
“Notwithstanding the foregoing, this Ordinance does not apply to conditional use permit applications received and determined by the City to be adequate for review pursuant to 38.19.090.D, BMC, prior to the effective date of this Ordinance.”
FISCAL EFFECTS: None recognized from adoption of this Ordinance. Staff time will be
required to conduct the study and public process required by Section 2 of the Ordinance.
Attachment: Ordinance 1958
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ORDINANCE NO. 1958 Page 1 of 5
ORDINANCE NO. 1958
AN INTERIM ZONING ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, AMENDING SECTION 38.08.020 OF THE MUNICIPAL CODE TO
CHANGE THE USES ALLOWED WITHIN THE R-1, R-2, R-S, AND NEHMU ZONING
DISTRICTS BY REMOVING “EXTENDED STAY LODGINGS” AS A CONDITIONAL USE IN THOSE DISTRICTS FOR A PERIOD OF SIX MONTHS. Preamble
This ordinance is intended to protect the public safety, health and welfare through the adoption, as an urgency measure, of amendments to the allowed uses within the R-1, R-2, R-S, and NEHMU residential zoning districts.
WHEREAS, Section 76-2-306, Montana Code Annotated, provides for adoption of an interim
zoning ordinance prohibiting for a period of six months any uses which may be in conflict with a
contemplated zoning proposal which the legislative body is considering or studying, or intends to study;
and
WHEREAS, there has been a rapid increase in the number of vacation or “short term rentals”
in the City of Bozeman; and
WHEREAS, the City’s adopted ordinances permit the creation of and location of land uses
within established zoning districts as “principal”, “accessory”, or “conditional” uses; and
WHEREAS, the adopted ordinances permit the creation of and location of short term rentals
(termed “extended stay lodgings” in Chapter 38 of the Bozeman Municipal Code) as a conditional use in
R-1, R-2, R-S, and NEHMU residential zoning districts; and
WHEREAS, the City Commission has received extensive public comment during a period of
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ORDINANCE NO. 1958 Page 2 of 5
several years regarding the granting of conditional use permits for extended stay lodgings in R-1, R-2,
R-S, and NEHMU residential zoning districts; and
WHEREAS, the City Commission finds the ongoing permitting of short term rentals within
R-1, R-2, R-S, and NEHMU residential zoning districts until such time as the City has the opportunity to
study the impacts of such short term rentals on these zoning districts has a detrimental effect on the
public safety, health and welfare because the increase of such use in these zoning districts is leading to
and may continue to lead to increases in disturbances to neighboring residents’ peaceful enjoyment of
their homes by excessive noise, disorderly conduct, parking congestion, and other nuisances; and
WHEREAS, the City Commission finds the continued permitting of short term rentals within
R-1, R-2, R-S, and NEHMU residential zoning districts until such time as the City has the opportunity to
study the impacts of such short term rentals on these zoning districts has a detrimental effect on the
public safety, health and welfare by altering the residential character of neighborhoods within those
districts without adequate evaluation of such impacts over the long term; and
WHEREAS, the City Commission finds adoption of this interim zoning ordinance is urgent
and necessary to address whether short term rentals continue to be compatible and appropriate with R-1,
R-2, R-S and NEHMU as such uses appear to be increasing in such zoning districts; and
WHEREAS, the City Commission intends, over the next six months, to carefully consider and
study options regarding appropriate locations and regulations for short term rentals, and their
compatibility with residential uses within the City prior to permanently adopting revised or new
regulations; and
WHEREAS, the development and review of amendments to Chapter 38 of the Bozeman
Municipal Code to address short term rentals will require numerous formal steps to inform and involve
and obtain input from the public and other agencies prior to adoption of any proposed amendments; and
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ORDINANCE NO. 1958 Page 3 of 5
WHEREAS, the process to involve the public and other agencies and to create permanent
zoning or general ordinances will take at least six months, a period of time that could allow additional
applications for conditional use permits for short term rentals in R-1, R-2, R-S, and NEHMU residential
zoning districts.
NOW, THEREFORE, BE IT ORDAINED by the City Commission of the City of Bozeman,
Montana, that:
Section 1
The City Commission incorporates the above recitals into this ordinance.
Section 2
Extended Stay Lodging, and any other similar use such as a short term rental or a vacation
rental, is hereby repealed and suspended as a conditionally permitted use in R-1, R-2, R-S, and NEHMU
zoning districts until six (6) months from the effective date of this Ordinance or such time as the City
Commission adopts an ordinance(s) authorizing such use, whichever is sooner. The effect of such repeal
and suspension is that such uses are hereby prohibited in R-1, R-2, R-S, and NEHMU zoning districts.
Nothing in this Ordinance may be construed by any person, firm, corporation or entity as authorizing
any use for an extended stay lodging or similar use that operated prior to the effective date of this
Ordinance without a valid zoning permit, business license, or other required permit from the City.
Section 3
The City Commission hereby directs the City Manager to investigate and study the effects of
extended stay lodgings, and other similar uses, including short term and vacation rentals, on locations in
the City zoned R-1, R-2, R-S, or NEHMU and other locations and to make recommendations in as
timely a manner as possible to the City Commission regarding the zoning of such uses and other matters
relating to impacts of such uses on the public health, safety, and general welfare.
Section 4
Effective Date and Period.
This ordinance shall be effective immediately upon passage and for a period of not more than
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ORDINANCE NO. 1958 Page 4 of 5
six (6) months from the date of adoption hereof, unless otherwise extended in accordance with Montana
law.
Section 5
Supersedence.
All City ordinances and parts thereof in conflict herewith are hereby temporarily superseded
by this Ordinance for the time period as described in Section 2 above, insofar as said ordinances or parts
thereof may apply within the corporate boundaries of the City of Bozeman.
Section 6
Severability.
If any provision of this Ordinance or the application thereof to any person or circumstances is
held invalid, such invalidity shall not affect the other provisions of this Ordinance which may be given
effect without the invalid provision or application and, to this end, the provisions of this Ordinance are
declared to be severable.
Section 7
Savings Provision.
This Ordinance does not affect the rights or duties that matured, penalties and assessments that
were incurred, or proceedings that were finally acted upon prior to the effective date of this Ordinance.
Section 8
Codification Instruction.
This Ordinance shall not be codified but shall be kept by the City Clerk and entered into a list in
numerical order with all other ordinances of the City and also shall be organized in a category entitled
“Interim Zoning Ordinances.” The City Clerk must immediately transmit this Ordinance for inclusion
on the City’s internet-accessed municipal code website so as to prominently display the repeal and
suspension as provided for in Section 2.
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ORDINANCE NO. 1958 Page 5 of 5
Section 9
Applicability.
Subject to the provisions of 38.34.090, BMC, this Ordinance is made expressly applicable to
all applications for city business licenses, building permits, zoning, or any other permit that could
establish an entitlement for a use prohibited by this Ordinance, which have been received by the City of
Bozeman but not yet finally acted upon as of the effective date of this Ordinance.
PASSED, ADOPTED AND APPROVED by the City Commission of the City of Bozeman,
Montana, at a regular session thereof held on the 8th day of August, 2016.
__________________________________________
CARSON TAYLOR Mayor
ATTEST:
_______________________________
ROBIN CROUGH
City Clerk
APPROVED AS TO FORM:
__________________________________________
GREG SULLIVAN
City Attorney
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