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17185, Staff Report for the Short Term Rental Municipal Code Text
Amendment
Public Hearing Dates: Zoning Commission, May 16, 2017
City Commission, May 22, 2017
Project Description: Amend the Bozeman Municipal Code to address short term rentals.
The amendment will create and repeal definitions, establish where short term rentals
are allowed, establish what standards apply to short term rentals, and the review
process for approval of short term rentals. A requirement for a business license will
be removed. Three different types of short term rentals will be authorized. In general,
a short term rental is a vacation home; dwelling as defined in 38.42.940; accessory
dwelling unit; or room within a vacation home or dwelling, rented by or on behalf of
the owner to the general public for compensation for periods of less than 28
consecutive days.
Project Location: These amendments apply to all residentially zoned property designated
as RS, Residential Suburban District; R-1, Residential Single-Household Low
Density District; R-2, Residential Two-Household Medium Density District; R-3,
Residential Medium Density District; R-4 Residential High Density District; R-5,
Residential Mixed-Use High Density District; R-O, Residential-Office District;
RMH, Residential Manufactured Home Community District; REMU, Residential
Emphasis Mixed-use District; and NEHMU Northeast Historic Mixed-Use District.
The amendments also apply to non-residential districts BP, Business Park; B-2
Community Business District; B-2M, Community Business District – Mixed; B-3,
Central Business District; and UMU, Urban Mixed Use District.
Recommendation: Approval
Zoning Commission Recommended Motion: Having reviewed and considered the
proposed ordinance, public comment, and all the information presented, I hereby
adopt the findings presented in the staff report for application 17185 and move to
recommend adoption of Ordinance 1974.
Commission Recommended Motion: Having reviewed and considered the proposed
ordinance, public comment, recommendation from the Zoning Commission, and all
the information presented, I hereby adopt the findings presented in the staff report
for application 17185 and move to provisionally adopt Ordinance 1974.
Report Date: May 11, 2017
Staff Contacts: Chris Saunders and Chuck Winn
Agenda Item Type: Action - Legislative
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TABLE OF CONTENTS
EXECUTIVE SUMMARY ...................................................................................................... 2
Unresolved Issues ............................................................................................................... 2
Project Summary ................................................................................................................. 2
Alternatives of the Zoning Commission ............................................................................. 3
SECTION 1 - MAP SERIES .................................................................................................... 4
SECTION 2 - RECOMMENDATION AND FUTURE ACTIONS ........................................ 7
SECTION 3 - STAFF ANALYSIS AND FINDINGS ............................................................. 7
Section 76-2-304, MCA (Zoning) Criteria ......................................................................... 8
PROTEST NOTICE FOR ZONING AMENDMENTS ......................................................... 17
APPENDIX A - PROJECT BACKGROUND ....................................................................... 17
APPENDIX B - NOTICING AND PUBLIC COMMENT .................................................... 17
APPENDIX C - APPLICANT INFORMATION AND REVIEWING STAFF .................... 19
FISCAL EFFECTS ................................................................................................................. 19
ATTACHMENTS ................................................................................................................... 19
EXECUTIVE SUMMARY
Unresolved Issues
No specific issues have been identified. The Commission must ultimately determine what set
of standards best address the variety of issues affecting short term rentals.
Project Summary
For several years, the City Commission has been considering issues related to the increase in
the number of STRs throughout the City and in particular Bozeman’s lower density residential
zoning districts. During the past 9-10 months City staff has, at the Commission’s direction,
been studying possible regulation of STRs. The Commission discussed this issue at its regular
meeting on July 11, 2016 and a continuation of that discussion occurred on July 18, 2016. The
staff memorandum from those policy discussions is available in the City’s online archive of
Commission materials.
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On July 18, 2016 the Commission requested that staff draft an interim zoning ordinance that
would prohibit extended stay lodging uses in specific zoning districts until such time as the
City was able to study the effects of the increasing number of STRs on existing residential
neighborhoods. “Extended stay lodging” was a conditional use in R-1, R-2, R-S and
NEHMU, subject to approval of a conditional use permit (CUP) pursuant to 38.19.110,
Bozeman Municipal Code (BMC). Interim Zoning Ordinance 1958 repealing and
suspending “extended stay lodging” as a conditional use in these zones was adopted on
August 8, 2016 and was to expire on February 8, 2017. It was extended by Ordinance 1970
on February 6, 2017 for an additional six months and will now expire on August 8, 2017.
Substantial outreach to the community has resulted in participation from hundreds of persons
through surveys, attendance at meetings, and written comments. The comments have been
wide ranging in the topics and diverse in preferences. The comments are almost evenly
divided whether to approve or disapprove STRs.
Ordinance 1974 amends several portions of the municipal code. This report is specific to
those sections of the ordinance which revise Chapter 38 of the municipal code.
Alternatives of the Zoning Commission
1) Recommend adoption of the ordinance as presented;
2) Do not recommend adoption of the ordinance;
3) Suggest revisions to the ordinance prior to adoption in association with a recommendation
of adoption; or
4) Request additional information and continue discussion on the ordinance.
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SECTION 1 - MAP SERIES
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SECTION 2 - RECOMMENDATION AND FUTURE ACTIONS
Having considered the criteria established for a municipal code text amendment, Staff
recommends approval as submitted.
The Zoning Commission will hold a public hearing on this text amendment on May 16, 2017
at 6 pm at 121 N. Rouse Avenue, Bozeman.
The City Commission will hold a public hearing on the amendment on May 22, 2017, at 121
N. Rouse Avenue, Bozeman. The meeting will begin at 6 p.m.
SECTION 3 - STAFF ANALYSIS AND FINDINGS
In considering applications under this title, the advisory boards and City Commission shall
consider the following criteria. As an amendment is a legislative action, the Commission has
broad latitude to determine a policy direction.
In considering the following criteria the analysis must show that the amendment
accomplishes zoning criteria A-D or is neutral. Criteria E-K must be considered and may be
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found to be affirmative, neutral, or negative. A favorable decision on the proposed
application must find that the application meets all of criteria A-D and that the positive
outcomes of the amendment outweigh negative outcomes for criteria E-K.
Section 76-2-304, MCA (Zoning) Criteria
A. Be in accordance with a growth policy.
Yes. The growth policy does not dictate uses or specific standards to the level of detail
contained in the ordinance. It does identify issues and priorities for consideration and does
contain goals and objectives that are desirable outcomes. There is no prioritization of one
goal or objective over another. In determining appropriateness of a particular zoning
ordinance, the Commission needs to find a balance that best advances the interests of the
community. The City adopted the current edition of the growth policy, the Bozeman
Community Plan, in 2009. The growth policy has 285 pages of data, goals, and description,
most of which is not applicable to the discrete issue of short term rentals.
A review of the document found goals and objectives applicable to this application. Each is
identified and addressed in turn.
“Objective G-2.1: Ensure that development requirements and standards are efficiently
implemented, fairly and consistently applied, effective, and proportionate to the concerns
being addressed.”
Response: The public comment on short term rentals has been extensive. See Appendix B for
a summary. A theme in the comments has been to ensure that any regulations are reasonable.
This is consistent with the objective. The draft ordinance meets the objective. The regulations
match specific concerns with specific standards. For example, a safety inspection is required
to ensure that guests have adequate exiting options from sleeping areas in case of fire. The
exiting standard will be the same as for other residential properties. This standard has been
evaluated by fire and building organizations nationwide and found to be adequate. All short
term rentals who do not meet this standard will have the opportunity to make a correction
before beginning operation. If they cannot meet the standard they will not be approved.
Implementation of the exiting standard will use existing programs and personnel which is
more efficient than creating new standards or programs to address the need.
Chapter 3 identifies seven land use principles which are the basis for the chapter. An
applicable principle which has also appears in many of the public comments is
neighborhoods.
“ Neighborhoods. There is strong public support for the preservation of existing
neighborhoods and new development being part of a larger whole, rather than just
anonymous subdivisions. This idea includes the strengthening and support of existing
neighborhoods through adequate infrastructure maintenance and other actions. As the
population of Bozeman grows, it is harder to keep the same “small town” feel because
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residents cannot be on familiar terms with everyone. The neighborhood unit helps
provide the sense of familiarity and intimacy which can be lacking in larger communities.
The neighborhood commercial/activity center and local parks provide opportunities to
casually interact with other nearby residents. Not all neighborhoods are of equal size or
character.”
Response: This excerpt from the plan notes that neighborhoods are both important and vary
in character and size. People often make reference to their neighborhood in describing where
they live. The personal mental map of what defines the neighborhood are influenced by
familiarity, availability of notable features, social connections, and travel patterns.
Neighborhoods are often difficult to define objectively as a specific geographic area and may
not have strongly marked natural edges as perceived identity may changes with proximity to
a characteristic feature. A neighborhood is defined in the glossary to the growth policy as:
“Neighborhood. An area of Bozeman with characteristics that distinguish it from other areas
and that may include distinct economic characteristics, housing types, schools, or boundaries
defined by physical barriers, such as major highways and railroads or natural features, such
as watercourses or ridges. A neighborhood is often characterized by residents sharing a
common identity focused around a school, park, business center, or other feature. As a
distinct and identifiable area, often with its own name, neighborhoods are recognized as
fostering community spirit and a sense of place, factors recognized as important in
community planning.”
The definition nor the reality of neighborhoods rely on zoning district boundaries as
distinguishing features. The City’s Neighborhoods program does defined specific geographic
areas as individual neighborhood areas in association with the owners and residents of the
proposed neighborhood. The map of organized neighborhoods shows that 12 of 14 recognized
neighborhoods span zoning district boundaries.
As discussed in Appendix B, the City conducted substantial outreach to the public regarding
short term rentals. The majority of comments supported allowing short term rentals in all zoning
districts. Some comments suggested short term rentals with a less intensive use level would be a
better fit for zoning districts with more restrictive and less intensive other uses.
Chapter 3 contains multiple goals and objectives. Two goals are specifically applicable to short
term rentals.
“Goal LU-1: Create a sense of place that varies throughout the City, efficiently provides
public and private basic services and facilities in close proximity to where people live and
work, and minimizes sprawl.
Rationale: A sense of community is strengthened by distinctive areas which facilitate
neighborhood identity. This is strengthened when essential services are available and
encourage informal interactions. Full featured neighborhoods allow extensive interaction
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and build identity with a specific part of the community. A sense of place does not
prohibit change or continued evolution of the community.”
Response: The draft ordinance respects the existing zoning district structure which contributes to
the development of a varied sense of place within the City.
Objective LU-1.3: Encourage positive citizen involvement in their neighborhood and
community.
Response: The City’s outreach efforts for short term rentals has fulfilled this objective for this
text amendment. See Appendix B. Further, the draft ordinance requires those seeking approval
for a Type 2 or Type 3 short term rental to provide notification to nearby residents and to provide
contact information. This is a higher level of notice than would be required otherwise. Use of an
existing residence as a short term rental falls within the scope of a sketch plan review for zoning
compliance as described in Section 38.19.070 of the municipal code. Section 38.40.030 of the
municipal code describes the level of notice required for all applications. Sketch plans do not
require independent notice. Working directly with local residents and owners strengthens
understanding of respective concerns of short term rental owners and adjacent residents who may
be affected by the short term rental.
“Objective LU-1.4: Provide for and support infill development and redevelopment which
provides additional density of use while respecting the context of the existing
development which surrounds it. Respect for context does not automatically prohibit
difference in scale or design.”
Response: The online listings for short term rentals show them distributed throughout the
community. Short term rentals occur within previously approved residential buildings which
reviewed for compliance with all applicable zoning criteria. Therefore, the objective is met for
the physical characteristics of the site. The draft ordinance creates three categories of short term
rentals because there is a wide diversity of operations from incidental to a owner occupied
residence to a full-time wholly occupied building. Conversion from a full time residence to a
short term rental is redevelopment within the meaning of this objective. The procedures and
standards of the draft ordinance require a short term rental to operate in a manner that respects
the existing context by limiting intensity of use, requiring adequate parking, and ensuring that
users are informed of noise restrictions.
“Goal LU-3: Strengthen the Historic Core of Bozeman to preserve the community
character, economic resource, and historical connection represented by this area.
Rationale: The Historic Core, as defined in the glossary, is one of Bozeman’s most
distinctive and valued features. Loss of or injury to this area would lessen the
community’s cultural, economic, and social assets and reduce the sense of place
Bozeman holds within the community, state, and nation.”
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“Objective LU-3.1: Ensure that development and redevelopment of this area, including
the adaptive reuse of historic buildings, is done in a manner which enhances, and is
compatible with, the current community fabric.”
Response: Public comment is mixed on this goal. Some asserts that short term rentals may be
more carefully maintained than longer term rentals in the same area. Some asserts that a vacant
home is more or less disruptive than one used as a short term rental.
In 2016, 5,200,000 million persons drove through Bozeman and of those 1,900,000 spent at least
one night in Bozeman. The downtown area is one of Bozeman’s most prominent physical and
social features. Proximity to downtown can be an asset to visitors. Well-established residential
areas with a wide mix of housing types surround downtown. The historic core encompasses
commercial, residential, institutional, and industrial uses. There are competing viewpoints of
what will best strengthen the historic core. Reinvestment in building maintenance will support
the preservation of the distinctive buildings and streetscapes. Reinvestment can be by a fulltime
resident owner or by a business operator of a short term rental. Public comment contains
assertions that the opportunity to meet visitors to short term rentals strengthens social bonds and
assertions that short term visitors do not contribute to the social structures that build the local
community. Neither assertion invalidates the other as both can be occurring at different levels of
interaction.
Section 3.4 Land Use Category Descriptions.
“ Residential. This category designates places where the primary activity is urban density
dwellings. Other uses which complement residences are also acceptable such as parks,
low intensity home based occupations, fire stations, churches, and schools. High density
residential areas should be established in close proximity to commercial centers to
facilitate the provision of services and employment opportunities to persons without
requiring the use of an automobile. Implementation of this category by residential zoning
should provide for and coordinate intensive residential uses in proximity to commercial
centers. The residential designation indicates that it is expected that development will
occur within municipal boundaries, which may require annexation prior to development.
Community Core. The traditional core of Bozeman is the historic downtown. This area
has an extensive mutually supportive diversity of uses, a strong pedestrian and multi-
modal transportation network, and a rich architectural character. Essential government
services, places of public assembly, and open spaces provide the civic and social core of
town. Residential development on upper floors is well established. New residential uses
should be high density. The area along Main Street should be preserved as a place for
high pedestrian activity uses, with strong pedestrian connectivity to other uses on nearby
streets. Users are drawn from the entire planning area and beyond. The intensity of
development is high with a Floor Area Ratio well over 1. Future development should
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continue to be intense while providing areas of transition to adjacent areas and preserving
the historic character of Main Street.
Response: The residential designation underlays all residential zoning districts. The
description is broad and does not compel one or another district on a given location. The
focus is on housing use, not housing ownership. Rentals are equally acceptable as owned
dwellings in all areas with a residential designation.
Short term rentals are consistent with this designation as they occur within residential
structures and the use can begin and end without any change to the structure. Public comment
submitted from AirBNB (see Attachment 3, 2017 comments hyperlink) asserted that there
were 300 active hosts with 350 listings, average guest stay was 3.3 nights, and a typical
listing was for 49 nights per year, and 5 percent of listings were for more than 180 days per
year. Staff has no data to dispute these assertions. Assuming this data is representative of the
overall industry, 95% of short term rentals appear to classify as Type 1 or Type 2 which
occur within the owners principal residence and average 15 visits per year.
According to the US Census Bureau’s American Community Survey 2015, Bozeman had an
estimated 18,293 dwellings. If the number of Type 3 short term rentals were three times that
indicated by AirBNB’s comments then Type 3 short term rentals would comprise 0.29% of
all the housing in Bozeman. This appears to fit within the “Other uses which complement
residences…” element of the Residential land use category description.
The community core description supports inclusion of short term rentals through its call for
diversity of uses and its draw for users from within and without the planning area. The draft
ordinance includes short term rentals in most mixed use and commercial districts. The
establishment of a short term rental would first require approval for residential uses
according to the standards of the district.
Chapter 4 opening statement. “Community Quality refers to those things that make
Bozeman a special, attractive and enjoyable place to live, work, and play. Community
Quality issues include the ways neighborhoods are designed, the way new development
looks, the way our streets feel including our urban forest, parkland, trails, commercial
districts, new and old residential neighborhoods, open spaces, views to the mountains that
surround the City, the historic and new architectural styles, and the core of Downtown
Bozeman. An important component of Bozeman’s uniqueness and livability is the quality
of the people who live and work here. Community quality, regardless of design, is
ultimately meaningless without citizens that respect each other and treat one another and
the City landscape with decency.”
Response: The draft ordinance requires notification, registration, and option for revocation of
registration for those who do not operate a short term rental in accordance with established
standards. Public comment included assertions that part of what makes Bozeman desirable is its
welcoming character to visitors and new residents. It also included assertions that visitors to
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short term rentals can be disruptive and disrespectful. Both can be factual. Police and fire
response data do not show a disproportionate impact from short term rentals. This could be a
deficiency in reported issues. A majority of public comment respondents found that owner
present short terms rentals were the most acceptable. This is the Type 1 option.
Goal H-1: Promote an adequate supply of safe, quality housing that is diverse in type,
density, cost, and location with an emphasis on maintaining neighborhood character and
stability.
Rationale: A community needs a variety of housing stock to accommodate the diversity
in personal circumstances and preferences of its population. The type of housing required
may be different throughout a person’s life. A healthy community has a wide range of
citizens with differing age, education, economic condition, and other factors. Stable
neighborhoods encourage reinvestment, both financial and emotional that strengthens and
builds the community.
Objective 1.1 - Encourage and support the creation of a broad range of housing types in
proximity to services and transportation options.
Objective 1.2 – Encourage the preservation and rehabilitation of the existing housing
stock to protect the health, safety, and welfare of Bozeman residents.
Objective 1.3 - Promote the provision of a wide variety of housing types in a range of
costs to meet the diverse residential needs of Bozeman residents.
Goal H-3– Encourage an adequate supply of affordable housing and land for affordable
housing.
Rationale: There will always be a portion of the population which earns less than the
median income. This may be for many reasons. This affects the ability to find market rate
housing which is adequate for basic housing needs. Lack of adequate housing effects
health, social stability, and many other issues which can have severe negative and inter-
generation effects.
Objective 3.1 – Encourage the provision of affordable housing.
Objective 3.3 – Promote the development of a wide variety of housing types, designs, and
costs to meet the wide range of residential needs of Bozeman residents.
Response: Some comments on the issue of affordable housing asserted that use of homes for
short term rentals can remove dwellings from the stock of homes for long term use and
therefore increase pricing. Other comments asserted that the ability to obtain additional
income from rentals was helpful in being able to meet housing costs.
Type 1 or Type 2 short term rentals occur within the principal residence of the owner or
lessee. Therefore, they do not remove dwellings from the housing stock.
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According to the US Census Bureau’s American Community Survey 2015, Bozeman has an
estimated 18,293 dwellings. Public comment submitted from AirBNB asserted that there
were 300 active hosts with 350 listings, average guest stay was 3.3 nights, and a typical
listing was for 49 nights per year, and 5 percent of listings was for more than 180 days per
year. Staff has no data to dispute these assertions. Assuming this is representative of the
overall industry then only 5% of the short term rentals would be Type 3, which are not the
owner’s principal residence. Type 3 short term rentals would remove a dwelling from the
general housing stock for at least a part of the year. If the number of Type 3 short term
rentals were three times that indicated by AirBNB’s comments (assuming additional units
with different listing services) then Type 3 short term rentals would comprise 0.29% of all
the housing in Bozeman. This is a very small percentage and appears unlikely to have
material impacts on housing prices.
The draft ordinance does include a restriction on the operation of short term rentals within
dwellings where financial affordable housing support was provided by the City. This
restriction ends when the City has recaptured the support. It is expected that this will prevent
redirection into a non-owner occupied condition.
Overall, after considering the public comment, text of the growth policy, and the draft
ordinance staff finds that the growth policy does not prohibit short term rentals in any area of
the community. Neither is there specific direction in the growth policy to compel unlimited
authorization for short term rentals throughout the community. The draft ordinance is
responsive to applicable goals and objectives of the growth policy. The City Commission in
their final action on the draft ordinance has authority to weigh the various considerations and
determine what ordinance ultimately best balances the interests of the community. This
includes the decision to not regulate.
B. Secure safety from fire and other dangers.
Yes. Required initial and periodic follow-up inspections will help ensure that locations are
safe. Designs which cannot demonstrate adequate exiting from sleeping areas, fire
suppression or access, or compliance with other adopted safety standards will not be
approved. Site with less owner supervision are subject to greater inspection and information
to guest requirements. See also criterion C.
C. Promote public health, public safety, and general welfare.
Yes. The essential standards for provision of public services such as water and sewer will
not be modified. The balance of proposed standards are expected prevent overcrowding or
other negative impacts. Examination of police and fire records do not show any unusual
demand for services from short term rentals. The Health Department’s implementation of
state law requires a public accommodation license for all short term rentals. This in turn
requires safety inspections performed by the Health Department and Fire Department to
address sanitation, emergency exiting, and other issues. Structures which do not pass these
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inspections will not be allowed to be short term rentals. The City will coordinate its review
process for short term rentals with the Health Department to ensure that all required
inspections have been passed prior to approval of use of a short term rental.
D. Facilitate the provision of transportation, water, sewerage, schools, parks and other
public requirements.
Neutral. Short term rentals are the use of an existing residence within a residential or non-
residential zoning district. The determination of whether a residence is appropriate in that
location is previously determined by application of a zoning district through a zone map
amendment and by review of a site specific development. Use as a short term rental does not
materially change the essential use of the property or the physical characteristics of the
residential use as it applies to this criterion. Demand for services from short term rentals is
expected to be similar to other residential uses. Mitigation for residential impacts will be
addressed either during subdivision or site development review of the property. Billing for
sewer or water consumption will follow standard practice and offset public expenses.
E. Reasonable provision of adequate light and air.
Neutral. The basic standards for setbacks, dedication of parks, etc. that affect this criterion
are not altered with the proposed ordinance. Minimum standards for windows and air
circulation/venting remain in the building codes. There is a maximum occupancy standard
keyed to the number of bedrooms in each short term rental to limit excessive occupancy.
Maximum occupancy is most restrictive in Type 1 short term rentals where the owner must
be present during the time of use.
F. Effect on motorized and non-motorized transportation systems.
Neutral. The current allowances and requirements for parking apply based on the number of
bedrooms in the structure. Presently, any residential development may count a certain
number of on-street parking spaces and provide for parking on-site as well. The draft does
not require enclosed parking of any sort. Enclosed parking is allowed if the owner chooses to
provide it. This is the same standard that applies to other residential development. Short term
rentals must provide the same perimeter sidewalks as all other development. Short term
rentals occur within residential or mixed use structures. Evaluation of overall traffic effects
will occur during subdivision or site development review. This standard is no different from
other residential development.
G. Promotion of compatible urban growth.
No. The ordinance does not change any development standard that would enhance the ability
to expand the City. The ordinance does not impede the expansion of the City. Therefore, the
ordinance is neutral rather than a promotion of urban growth.
H. Character of the district.
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Yes. Residences are an allowed use in all R and most B zoning districts. There are options
for administrative approval in all districts where residences are allowed. Short Term Rentals
are a form of residential use therefore, they are consistent with the character of each district.
They may only occur within structures which comply with development standards applicable
to that district. The proposed ordinance places more intensive uses into districts which allow
more intensive uses. Registration will enable the City to track use and follow up if there are
problems with a particular location. Some public comment asserts that short term rentals are
not residential uses and should not be allowed in some zoning districts. The majority of
public comments asserts that short term rentals should be allowed in all zoning districts.
All zoning districts provide for a variety of principal and conditional uses. Those uses vary
by district. The uses range in intensity and likely size. No single use defines the entirety of
any zoning district. The draft ordinance identifies short term rentals as principal uses. This
shows a determination that the use is consistent with the overall character of the district
represented by the total of all uses and development standards applicable to each district.
Short term rentals must abide by the same physical standards for setbacks, building heights,
lot coverage and others which apply in each district. The draft ordinance finds that short term
rentals are a residential use of property. The classification of three types of short term rentals
enables the intensity of respective use to be fitted to individual districts. Therefore, this
criteria is met.
I. Peculiar suitability for particular uses.
Neutral. Short term rentals are the use of an existing residence within a residential or non-
residential zoning district. The determination of whether a residence is appropriate in that
location is previously determined by application of a zoning district through a zone map
amendment and by review of a site specific development. Use as a short term rental does not
materially change the essential use of the property or the physical characteristics of the
residential use. Conversion from a short term rental to a permanent residence requires no
zoning review or alteration to the property.
J. Conserving the value of buildings.
Yes. The standards and procedures for short term rentals do not alter the standards for
building location, size, or other physical development standards. No structure will be non-
conforming due to the proposed ordinance. The proposed standards for short term rentals
offset or prevent the physical effects of their use. Adequate parking must be provided prior to
approval of a registration. Utilities will have the same connections as other dwellings.
K. Encourage the most appropriate use of land throughout the jurisdictional area.
Neutral. Short term rentals are similar in impact to many other uses allowed in zoning
districts. Type 1 and Type 2 short term rentals are operated intermittently within an existing
residence and are not expected to have a material impact on the overall use of land. Type 3
occupy an entire home but have the same lot area, parking, and other development
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requirements as a dwelling. If a dwelling has not already been approved and deemed
appropriate for an area a short term rental will not be allowed.
PROTEST NOTICE FOR ZONING AMENDMENTS
IN THE CASE OF WRITTEN PROTEST AGAINST SUCH CHANGES SIGNED BY THE
OWNERS OF 25% OR MORE OF THE AREA OF THE LOTS WITHIN THE AMENDMENT AREA OR THOSE LOTS OR UNITS WITHIN 150 FEET FROM A LOT INCLUDED IN A PROPOSED CHANGE, THE AMENDMENT SHALL NOT BECOME EFFECTIVE EXCEPT BY THE FAVORABLE VOTE OF TWO-THIRDS OF THE PRESENT AND VOTING
MEMBERS OF THE CITY COMMISSION.
For this text amendment application the applicable calculation of protesting owners would
include the entire ownership of all affected residential districts.
APPENDIX A - PROJECT BACKGROUND
Project Background: The City Commission received a memo from the Assistant City
Manager prior to their policy discussion on April 24, 2017. That memo describes the history
of this issue and is included with this report to provide background for this text amendment.
APPENDIX B - NOTICING AND PUBLIC COMMENT
This application is for an amendment to the municipal code. Therefore, the required notice is
publication in the newspaper per Table 38.40.030, BMC. Notices were published on April 16,
23, and 30th, 2017 in the Bozeman Daily Chronicle. In addition to this notice, a notice of the
proposed amendment as well as the text of the amendment were posted on the City’s website.
Information was distributed through the InterNeighborhood Council and Neighborhood
Coordinator. A public workshop was advertised and held on May 12, 2017 to explain the
proposed ordinance.
Subsequent to the adoption of the Interim Zoning Ordinance and in preparation for this discussion,
City staff took a proactive approach to soliciting community input. We initiated three major
opportunities for citizen input into this initiative:
• Online City Hall Forum
• Public Forums
• Written Public Comment
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Online City Hall: The internal team drafted and launched an Online City Hall survey which began
on December 19, 2016 and ran through January 31, 2017.
The City received 768 survey responses with 177 of those from registered, identified users.
Survey highlights (rounded to nearest percentage):
• 73% of people surveyed believed there are STRs in their neighborhood.
• When asked about the positive effects of STRs,
o 84% believed STR properties are usually well cared for,
o 47% believed there are fewer empty/dark houses in their neighborhood, and
o 47% believed that it provided an opportunity to meet new people.
• When asked about the negative effects,
o 65% were concerned with parking,
o 56% were concerned with the effect on the supply of housing, and
o 44% were concerned with changes to the character of their neighborhood and noise.
• 62% agreed there should be a permit and fee for operating a STR
• 64% agreed there should be a limit on the number of guests
• 79% agreed there should be a local property manager or responsible person
• Primary reasons for owning or operating a STR:
o 44% own or operate an STR to make additional income,
o 35% to pay the mortgage, and
o 21% because they live there part-time and did not want to leave their property
empty.
When asked about the areas in which STRs should be allowed, 73% felt they should be allowed in
all city residential zoning districts.
Public forums: Assistant City Manager Winn led three public engagement meetings in January
2017. The public meetings were scheduled on different days of the week in the evening at three
different locations in an effort to boost attendance. The meetings were organized in a consensus
format with all participants’ input captured in their words.
103 people attended the community forums. Participants were asked to describe their “worst fears”
and “best possible outcomes”. Staff captured these ideas in the speaker’s own words on large pads
of paper. At each meeting, discussions were lively and the participants were engaged and
respectful of the different viewpoints offered. Overall, we received very positive feedback on the
usefulness of these meetings. A summary of the feedback received at these public forums can be
found in Attachment 1.
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Written public comment: At the time of this writing, the City has received 77 written comments
related to STRs as of the writing of this report. These comments were submitted to
agenda@bozeman.net and the Neighborhood Coordinator including comments submitted for a
related CUP application for a property at 304 W. Cleveland (see hyperlinks below for 2016
comments and 2017 comments online). These comments reflect a wide range of viewpoints.
The InterNeighborhood Council (INC), which is composed of an elected representative from each
of the 13 neighborhood associations, formed a working group to investigate STRs and their effect
on neighborhoods. This resulted in a set of recommendations that were supported by the INC.
Regarding the zoning districts that should allow STRs, INC’s recommendation is that the rental of
a room should be allowed in all zoning districts, and that STRs which are not the owner’s primary
residence should not be allowed in R-S and R-1. They were not able to reach a consensus on where
to allow STRs that are the owner’s primary residence. See Attachment 3, 2017 comments for
INC’s recommendation.
APPENDIX C - APPLICANT INFORMATION AND REVIEWING STAFF
Applicant: Bozeman City Commission, PO Box 1230, Bozeman MT 59771
Report By: Chris Saunders, Policy and Planning Manager
FISCAL EFFECTS
Minimal budgeted funds will immediately be expended for implementation of this text
amendment. Costs will be incurred for review of individual registration requests. If the
Commission chooses to use an online compliance monitoring service costs will be incurred.
Costs vary depending on what level of service the community desires. Revenue will be obtained
by application fees. The Commission has not yet established the fee for registration. Total
balance of costs and revenues will depend on how many applications are submitted and for of
what type of short term rental.
ATTACHMENTS
The full application and file of record can be viewed at the Community Development
Department at 20 E. Olive Street, Bozeman, MT 59715.
Provisional Ordinance 1974
Public Comments (available by web link)
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- Attachment 1 – Summary of public workshops (Attachment E of the April 24, 2017
memo to the City Commission regarding short term rentals)
- Attachment 2 – Survey responses
- Attachment 3 – Web link to 2016 comments and 2017 comments
Short term rental review process diagram