HomeMy WebLinkAbout10-10-23 Public Comment - G. Nyhus - Comments opposing Proposed City Ordinance 2131From:greg nyhus
To:Agenda
Subject:[EXTERNAL]Comments opposing Proposed City Ordinance 2131
Date:Sunday, October 8, 2023 8:31:23 AM
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Bozeman City Commission, Greetings.
My wife, a Montana native, and I write to oppose City Ordinance 2131 and the
elimination of Type-3 Short Term Rentals. Such rentals contribute directly to the local
economy, providing jobs 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 is in an area targeted for revitalization and urban re-design by the City, an
effort underway for nearly a decade. The Midtown improvement and revitalization
efforts included tax incentives, technical assistance grants, and urban zoning
changes to improve the quality of life for residents and businesses in the Midtownarea. 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)
provides direct and tangible contributions to the City’s urban diversification and
improvement efforts. With only two hotels in the area, local Short Term Rentals
provide direct 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 patronize those 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
Rental provided local, urban lodging for guests for 120 nights last year and 120 nights
this year, usually for more than two or more guests each stay. Nearly every visitor
commented about the fun, urban environment, walking distance to Downtown, and
the restaurants in the same building. Given the number of diverse visitors in our Short
Term Rental and others nearby, giving life to new businesses in the area, Midtownseems to have become its own economic zone, with music nightly at Bourbons (which
we promote to our guests and where they eat) at the Ponderosa Social Club (which
we promote to our guests and where they eat), coffee shops across the street 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
the most transient and likely most impactful of short-term rentals. The September 27
report from Erin George and Anna Bentley, claiming that “[t]he proposed prohibition of
Type 3 short term rentals in all zoning districts would decrease annual STR permit fee
revenues,” is, therefore, kindly, short-sighted. As a threshold, each guest pays a tax,roughly $50 for a three-night stay - more than the license fee. Three-night stays for
40 guests (120 nights) at $50 in tax each yields $2,000, far greater than the
fee. Further, with Midtown as an example, sales taxes from local and out-of-area
patrons flood city and state coffers, and businesses employ local individuals whoreinvest or spend their money locally. Jobs that depend on that flow will likely suffer
with a decrease in traffic. And like so many others, we also pay not just the “fees” but
also local companies to manage, improve, and clean.
The City’s own revitalization plan is also impacted – of which short-term rentals were
part of the investment effort. From the Midtown Urban Renewal Action Plan, this
revitalization and investment effort was key:
Investors are wisely seizing this authentic quality and adapting existing uses
into modern amenities that are highly desired and provide significant activity and
energy along the corridor. Rainbow Hotel developer Dean Folkvord understands
that “one thing happens at a time, and it might take 10 years, but the
investment is going to happen on North 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 read completely, fails to support the City’s efforts here. Short-term rentals
comprise about 2.5 percent of the city’s overall housing stock. It's more than likely
that the Type-3 housing is merely a fraction of this number, given the restrictive
zoning ordinances:
This suggests that restrictions on STRs may affect only a small portion of the
housing supply and suggests that if these units were not permitted to be rented
as STRs, they would not become affordable long-term rentals or homes for sale
without additional subsidy or support.
The report – contrary to the stated purpose of the proposed legislation – undermines
the goals of reducing houselessness and other livability concerns while operating to
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 is no real discernable relationship between the current proposal and
placing individuals in affordable 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 study proves this legislation is a bad idea.
Best,
Greg Nyhus