Loading...
HomeMy WebLinkAbout05-16-17 Zoning Commission Minutes Zoning Commission Tuesday, May 16, 2017 6:00 PM City Commission Chamber – 121 N. Rouse Avenue A. 06:05:08 PM (00:00:07) Call meeting to order Present Were:  Julien Morice  Jordan Zignego  George Thompson  Erik Garberg (Chair)  Chris Mehl (Commissioner) B. 06:05:15 PM (00:00:14) Changes to the Agenda C. 06:05:24 PM (00:00:23) Approve Meeting Minutes:  5.2.17 MOTION to approve minutes: Julien Morice MOTION SECONDED: Jordan Zignego VOTE: All in Favor – Motion Passes D. Public Comment – Please state your name and address in an audible tone of voice for the record. This is the time for individuals to comment on matters falling within the purview of the Committee. There will also be an opportunity in conjunction with each action item for comments pertaining to that item. Please limit your comments to three minutes. E. 06:06:47 PM (00:01:46) Action Items 1. Short Term Rental Municipal Code Amendment, Application 17185. (Saunders) A text amendment to 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.  17185 Staff Report for the Short Term Rental Municipal CTA  Ordinance No. 1974  Short Term Rental Process Diagram 06:08:19 PM (00:03:18) Saunders noted that this ordinances only affects short term rentals within the city limits of Bozeman. 06:09:59 PM (00:04:58) Saunders reviewed the definition of a short term rental. He pointed out that this does not affect long term rentals – occupancy is less than 28 consecutive days for short term rentals. 06:12:07 PM (00:07:06) Saunders reviewed the three different classifications or types of short term rentals called out in the ordinance. 06:13:13 PM (00:08:12) Saunders clarified that short term rentals do not include bed & breakfasts, lodging-houses, hotels or motels or personal non-paying guests. 06:14:54 PM (00:09:53) Saunders reviewed a zoning chart of authorized uses for each short term rental type. 06:17:20 PM (00:12:19) Saunders noted that the purpose of this hearing was to receive public input and that there may be changes depending on this input and discussion with the commission throughout this process. 06:19:33 PM (00:14:32) Saunders reviewed the proposed registration process and standards for Short Term Rentals. 06:23:35 PM (00:18:34) Saunders reviewed some identified unresolved issues that will be considered prior to moving forward with the final decision regarding short term rentals. 06:25:59 PM (00:20:58) Saunders reviewed the proposed criteria of evaluation for short term rental eligibility. 06:27:29 PM (00:22:28) Presentation ends – Saunders opened up to the board for questions. 06:28:01 PM (00:23:00) Board member Thompson voiced concerns regarding ‘snow birds’ and neighborhoods turning into hotels with how many short term rentals may arise with the proposed changes. He also asked if the licensing and registration fees would cover the cost of enforcing the new policy. 06:34:27 PM (00:29:26) Board Member Morice voiced concern regarding setting limitations on short term rentals due to the fact that it may affect property values. Saunders replied that the proposed criteria was meant to prevent properties from sitting empty for long periods of time. 06:40:32 PM (00:35:31) Chair Garberg asked if there was any thought to utilizing Conditional Use Permits (CUP). Saunders replied that they had considered them, but that for this type of application the benefit of the CUP would be included in the defined standards and procedures. Garberg continued by asking about Code Enforcement and how they would handle the new regulations. Saunders stated that the Police Dept. has been part of this process and would respond to complaints as they would any type of residence. 06:45:22 PM (00:40:21) Thompson spoke in support of having short term rentals requiring a CUP in some areas so that it would be easier to identify a STR property when looking at purchasing a property. 06:47:57 PM (00:42:56) Commissioner Mehl asked how the short term rental table compares to if they were discussing long term rentals. Saunders explained that long term rentals are permitted everywhere. Mehl continued by asking what would happen if people were operant a STR out of compliance. Saunders answered that according to state law, it could be considered a misdemeanor as a zoning violation. 07:03:01 PM (00:58:00) Board member Morice asked about vacation rental owners transitioning out of business after the new ordinance takes place if they do not qualify. Saunders explained that they are able to continue operating until their current business license expires. 07:03:37 PM (00:58:36) Saunders explained what will happen for those currently operating legally who will not be in conformance with the new ordinance, whether they have Conditional Use Permits, etc. There are 47 total who have business licenses today. They will be able to continue to operate as they have before as long as they register prior to the expiration of their current license. 07:10:18 PM (01:05:17) Public Comment 07:10:36 PM (01:05:35) Deanna Campbell (1015 S. Grand) stated that she purchased the property in 1990 with the intent of retiring there, utilizing it as a vacation rental as she travels. She did an extensive remodel in 2014. During her remodel, the short term rental moratorium occurred. She felt that this ordinance is taking her property rights from her. 07:14:10 PM (01:09:09) Catherine Courtenay (311 S. 8th Ave) asked about the physical inspections for health and fire and whether they take place annually. She also commented on the number of applications that would need to be processed during the adoption time if all 350 short term rentals applied to be in compliance. 07:15:51 PM (01:10:50) Richard Mortel (S. Black) argued that the city’s goal was not 100% compliance, but the goal is to remedy problems that the City feel are associated with short term rentals. Mortel stated that he had not seen any reliable data that made clear what the problem is that the regulations are addressing. He also commented that many short term rental owners were told not to apply for a business license due to the fact that short term rentals were not being enforced. 07:21:05 PM (01:16:04) Frank Maglio shared that he has two vacation rentals in Park County and that it has been a positive experience for him and that he purchased a property in Bozeman last year and is considering purchasing another and that so far his experience has gone well. 07:22:14 PM (01:17:13) Cathy Powell (1215 S. 3rd) commented that she felt the issue at hand is striking a balance between neighborhoods and short term rentals. She commented that Type 1 should be looked at more closely. She also commented on the criteria for the new ordinance to comply with the growth policy and infill in Bozeman. Powell thought that Type 1 did not comply with the criteria required and that citizen involvement was minimal. She also encouraged the city to contract software that would help enforce the short term rental ordinance. 07:25:20 PM (01:20:19) Paul House (owner of a STR at 601 N. Grand) commented that the findings do not support the conclusion of this ordinance. House commented that short term rentals offer value to the community. He continued by stating that not allowing Type 3 rentals in R2 zoning will be problematic as there are many in existence. House also stated that they were told not to apply for CUPs as they were not worth the cost. 07:30:21 PM (01:25:20) Ron Gray (1106 S. 3rd) commented that the staff has done a commendable job of coming up with an ordinance that represents all sides of the short term rental. He asked that they give more consideration to the appropriateness of STRs in the R1 single family residential district. He felt the staff made this ordinance as benign as possible, but commented that this use has become more industrial than it was previously. He stated that the survey should is not statistically valid and to be careful not to give it validity beyond what it warrants. 07:33:09 PM (01:28:08) Marilay Brown commented that R1 and R2 rentals should be treated alike as they are considered residential. Brown stated that she lives in R3 zone, which allows short term rentals. She stated that she was told that she did not need a business license. She stated that no matter when she is renting, her personal belongings are always at the residence. She rents occasionally with a person with an extra bedroom and when she is away. Brown also commented that she screens carefully when renting out her residence and that she strives to keep her neighbors happy – adding that college students who have 5 vehicles take up significantly more parking. She continued to voice concern with the registration process putting personal information out to the public in the notification process. She asked that the registration process change for Type 2. 07:38:26 PM (01:33:25) Lisa Prough rented her property as a long term rental for quite some time. Recently, she decided to try short term rentals. She argued that her guests have not caused issues, stating that she has had more problems with long term neighbors. She shared personal stories to demonstrate how well her short term rental stays have gone. She asked that short term rentals be permitted as they offer a necessary source of income. 07:43:15 PM (01:38:14) Jason Delmue (18 E. Peach St.) stated that he has a short term rental in R3 and he will have one in B3. He stated that Type 2 rentals should be allowed in R1 zoning as the benefit is that they are allowed to live here more than 50% of the time while having a source of income. He also felt Type 2 should be allowed in R2 zoning. Delmue also commented on the surveys done. 73% felt that STRs should be allowed in all zones and the other statistics supported short term rentals. He also commented that he felt that R1 should not stand apart from other zones as all of the neighborhoods should be treated equally in the regards of walkability, community, etc. Delmue also shared that .29% of Bozeman’s housing stock was consumed by short term rental properties. 07:47:46 PM (01:42:45) Suzy Hall, owner of Mountain Home Vacation rentals, stated that Bozeman has many second homes where residents would not prefer to rent them out long term, causing them to remain ‘dark’ all year. Hall recommended capping the total number of STR licenses issued per neighborhood so that neighborhoods remained balanced with long term residents. She felt they are appropriate in all zoning districts, stating that no neighborhood is less of a neighborhood due to zoning. She stated that she has managed over one dozen vacation rentals per year and in the past 22 years has received maybe 3 calls concerning the guests staying. Hall stated that she has had zero calls to the police regarding her guests. She agreed that it is time to license and regulate short term rentals, but that it is not time to ban them. 07:50:35 PM (01:45:34) Allison Konkel commented that she works for Mountain Home Vacation Rentals. She voiced support of vacation rentals and stated that she would like to see them disbursed more evenly across the city. She stated that it is challenging to find a distinction between R1, R2 and R3 and that there should not be an ‘elite’ zone that bans vacation rentals. She also shared that those who have been paying bed tax and operating in compliance should be grandfathered in. 07:52:32 PM (01:47:31) Sahara Devey (W. College) wanted to speak on behalf of affordable housing. She spoke against Type 3 rentals as they take housing off of the market. She stated that she is aware of at least 4 vacation rentals that are not marked on the map provided. Her concern is that short term rentals take away housing from those who would like to work and live in Bozeman. Devey voiced concerns regarding the fast development, high end homes and second homes taking over in Bozeman. 07:56:30 PM (01:51:29) Staff answered questions that were asked during public comment. Saunders stated that for inspections, there would be an initial inspection of the short term rental and that the city could choose to randomly sample and inspect homes, but that they do not know how often that would happen. In response to the rush of people trying to register their rentals in the 60 day period, that they will be able to self-certify and continue to operate while staff is working through the inspection process. The materials that will be looked for will be available to the public. Saunders also shared where to find the zoning maps, online or at the Planning office at 20 E. Olive. 07:59:30 PM (01:54:29) Board Discussion Board member Morice stated that he felt that short term rentals are managed well in an attempt to maintain a good reputation. He also shared that he would rather have a short term rental next door than a home full of college students. He encouraged the commission to speak to a licensed real estate agent or broker to evaluate the impact on the value of properties with limiting short term rentals. He also stated that adding administration is unnecessary and that the cost will not be recuperated. He stated that he does not support the ordinance and that he would vote against it. 08:02:48 PM (01:57:47) Board member Zignego stated that he was in favor of some sort of regulation, but that he was not aware of the issue at hand. He stated that this has the potential to disenfranchise and marginalize. Zignego also supported offsetting the cost of living in Bozeman with short term rentals. He stated that he would not support the ordinance. 08:03:39 PM (01:58:38) Board member George Thompson voiced concerns regarding the City’s ability to follow through on this ordinance. He also voiced concerns regarding the ordinances impact on affordability by driving up the price of these rental homes that have been grandfathered in. In response to a public commenter stating that they have two property rentals and would like to purchase more, he stated that it would impact affordability. 08:05:40 PM (02:00:39) MOTION Having reviewed and considered the proposed ordinance, public comment and all information presented, I hereby adopt the findings presented in the staff report for application 17185 and move to recommend the adoption of ordinance 1974: Julien Morice 08:06:00 PM (02:00:59) MOTION SECONDED: George Thompson 08:06:04 PM (02:01:03) Discussion: Morice stated that he would be willing to support some regulation of short term rentals, grandfathering in those who have been in operation in the past. He stated that he did not think that the ordinance would affect affordability, that they will still need rooms and that it was a separate demand. Morice stated that he would not support the motion. 08:07:08 PM (02:02:17) Zignego clarified that he would support regulation to the point that there should be some kind of grandfather clause for those who invested money into properties that were in compliance at the time. 08:07:36 PM (02:02:35) Chair Erik Garberg stated that he felt it was important to protect neighbors, but that there were many in his neighborhood who needed the short term rental income in order to pay their mortgages. He stated that he viewed short term rentals as keeping more people in their homes than people kept out and that he would not be supporting the motion. 08:08:09 PM (02:03:08) VOTE: None in Favor – Motion Fails unanimously F. 08:08:30 PM (02:03:29) FYI/Discussion Short term rentals will be on the Commission agenda on May 22nd G. 08:08:58 PM (02:03:57) Adjournment For more information please contact Tom Rogers at TRogers@bozeman.net This board generally meets the first and third Tuesday of the month at 6:00pm Zoning Commission meetings are open to all members of the public. If you have a disability and require assistance, please contact our ADA coordinator, Mike Gray at 582-3232 (TDD 582-2301).