HomeMy WebLinkAbout10-03-23 Public Comment - G. Nyhus - Comment re_ 2131 (Bozeman Community Development Board Meeting)From:greg nyhus
To:Agenda
Subject:[EXTERNAL]Comment re: 2131 (Bozeman Community Development Board Meeting)
Date:Monday, October 2, 2023 11:57:35 AM
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Community Development Board, Greetings.
My wife, a Montana native, and I write to oppose City Ordinance 2131 and the elimination ofType-3 Short Term Rentals. Such rentals contribute directly to the local economy, providingjobs and vitality to the area, contribute to the ability of others to sustain affordable housing,and – fairly – do not displace unhoused residents.
Our Short Term Rental is located at 515 W Aspen, near the intersection of 7th and Aspen. It isin an area targeted for revitalization and urban re-design by the City, an effort underway fornearly a decade. The Midtown improvement and revitalization efforts included tax incentives,technical assistance grants, and urban zoning changes to improve the quality of life forresidents and businesses in the Midtown area. Aspen Crossing was part of that revitalization,as were five restaurants on the same block.
Our Short Term Rental in Aspen Crossing (as well as the others in the building), providesdirect and tangible contributions to the City’s urban diversification and improvement efforts.
With few hotels in the area (two on 7th near Midtown), local Short Term Rentals providedirect access to music venues, new food options, food trucks, and other new-to-the-area start-ups that would not be possible without a diverse and sustaining customer base to patronizethose businesses. Not otherwise accessible from the local hotel compounds near Interstate 90,our guests can walk to and spend money in local businesses.
The visiting public, obviously, makes this ecosystem sustainable. Our Short Term Rentalprovided local, urban lodging for guests for 120 nights last year and 120 nights this year. Nearly every guest left comments on the fun, urban environment. Given the number of diverseand fee-paying visitors in our Short Term Rental and others nearby, giving life to newbusinesses in the area, Midtown seems to have become its own economic zone, with musicnightly at Bourbons (which we promote to our guests and where they eat) at the PonderosaSocial Club (which we promote to our guests and where they eat), coffee shops across thestreet and the newest, Sapphire Spoon – owned by two sisters – inside Aspen Crossing. Eachdepends on the constant flow of “fresh money” from local and visiting patrons alike. ‘
All of this, including the city’s proposals for revitalization, are jeopardized by banning themost transient and likely most impactful of short-term rentals. The September 27 report fromErin George and Anna Bentley, claiming that “[t]he proposed prohibition of Type 3 short termrentals in all zoning districts would result in a decrease in annual STR permit fee revenues,” is,therefore, kindly, short-sighted. With Midtown as an example, taxes both from local and out-of-area patrons flood city coffers, and businesses employ local individuals who then reinvestor spend their money locally. Jobs that depend on that flow will likely suffer with a decreasein traffic. And like so many others, we also pay not just the “fees” but also local companies tomanage, improve, and clean.
With the City’s own revitalization plan impacted – of which short-term rentals were part of theinvestment effort. From the Midtown Urban Renewal Action Plan, this revitalization andinvestment effort was key:
Investors are wisely seizing this authentic quality and adapting existing uses intomodern amenities that are highly desired and provide significant activity and energyalong the corridor. Rainbow Hotel developer Dean Folkvord understands that “one thinghappens at a time, and it might take 10 years, but the investment is going to happen onNorth Seventh”.
But unfortunately, the city now seems bent on even dismissing their own report. The Short-Term Rental Assessment Prepared by Economic & Planning Systems, Inc., when readcompletely, fails to support the City’s efforts here. Short-term rentals comprise about 2.5percent of the city’s overall housing stock. It's more than likely that the Type-3 housing ismerely a fraction of this number, given the restrictive zoning ordinances:
This suggests that restrictions on STRs may affect only a small portion of the housingsupply and suggests that if these units were not permitted to be rented as STRs, theywould not become affordable long-term rentals or homes for sale without additionalsubsidy or support.
The report – contrary to the stated purpose of the legislation proposed by the City –undermines the goals of reducing houselessness and other livability concerns while operatingto erode a careful investment by the city's other residents. Converting a few hundred short-term rentals to long-term rentals will fail to decrease affordable housing stock. In fact, there isno real discernable relationship between the current proposal and placing individuals inaffordable housing. The city’s report proves this:
So, while hotel rooms still make up the majority of Bozeman’s bed base, STRs play an
important role in the ability of the city to accommodate visitors.
The city’s own report proves this legislation is a bad idea.
Best,
Greg Nyhus and Alanna Woods