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HomeMy WebLinkAbout2013-0305 Documents Submitted at Mtg /3 From: carolynshafferl <carolynshafferl @gmail.com> Subject: Ashland City Council - my comments re vacation rental challenges (Copy of msg sent via City of Ashland website) Date: March 5, 2013 3:34:27 PM PST To: carolynshafferl @gmail.com Reply-To: carolynshafferl <carolynshafferl @gmail.com> Dear Councilors: I plan to request time to comment tonight during the public comment time on the vacation rental agenda item. In case I don't get a chance to speak, below is the text of my comments. Thanks for listening, Carolyn Shaffer 234 - 7th Street Ashland, OR 541-488-0058 From Evemote: Ashland City Council my comments re B&B and other vacation- rental challenges WIN-WIN APPROACH TO MEETING B&B / VACATION-RENTAL CHALLENGES IN ASHLAND I'm a great lover of B & Bs and I want the full-service B & Bs in Ashland to continue to thrive. They are an essential part of the economy and of the charm and soul of this small town. They go hand in hand with the Shakespeare Festival in keeping Ashland on the map as a destination city. To use a trite phrase, some of my best friends are B & B owners. They work extremely hard, jump through lots of regulatory hoops and pay the hotel tax on top of all the other taxes business owners pay. They need to be treated fairly. I'm also a supporter of the ways in which the Internet is helping people who have experienced a sudden loss of income--and many have right here in Ashland--to continue to live in place, make a modest living, and contribute to their community. Some are doing this by selling products on EBay, others by renting out their car or even their driveway space, and still others by renting out an extra room in their house. And this house is often their only real asset. As I understand it, B & Bs originated in a big way in England and other European countries after World War II when so many women became war widows, had very little income and the way they survived was by renting out the extra bedrooms in their home to travelers. Today in Ashland there a lot of widows and widowers. Many women whose husbands have died have seen their household income plummet to a quarter of what it was. I'm one of those so I can relate. Others are what I call "economic" widows. They are experiencing the same kind of steep loss of household income because the primary breadwinner in the family has lost his or her job and there is no replacement job anywhere on the horizon. For many of these actual and economic widows lucky enough to own a home, this home is their only significant asset. And turning a bedroom in this home into a travelers accommodation is one way to be able to keep their head above water and stay in the community where they have put down roots. We as Ashlanders can say to these fellow citizens "Tough cookies, that's illegal. Why don't you move to Mexico or somewhere else where it's cheaper to live." Or we can say, hey, maybe there's a way we can rethink the city regulations to accommodate two very different kinds of B & B aimed at two very different markets of travelers. One is a high-end, full service B & B that accommodates dozens of people every night, serves them great breakfasts in the morning and tea and pastries in the afternoon and that attracts customers ready to pay for this premium service. The other is the low-end, bedroom in the home that provides maybe a coffeemaker and a microwave and says to the customer, you're on your own. This low-end travelers accommodation has little or no impact on the residential neighborhood. It's no different than a recently widowed woman inviting a couple of friends or family members to come visit. To the City Councilors of Ashland, I say: Air B & B and other services like it are not going to go away. Think about it: Are Amazon, iTunes and Craig's List going away? All of these are part of a massive shift in business models underway in this country and around the world. You can fignt these major new business models and turn a big chunk of Ashland's otherwise law-abiding, tax-paying, civically engaged citizens into scofflaws and criminals--and, by the way, turn citizen against citizen in an unnecessary mini-civil war--or you can take on, with citizen input, the creative task of re-imagining how to regulate citizens and businesses in this new era. I believe that with all the intelligence, compassion and dedication in this room and in the city, we can find fair and just ways of helping high-end, full-service B & Bs continue to, thrive side by side with low-end, minimal-service rentals of bedrooms in people's homes. In taking on this challenging task, we will put Ashland on the map for yet another reason. It will be a model for other destination cities facing this same dilemma. I find this challenge an exciting one. I'm convinced it can be a win-win. And I'm willing to help. t 131s/L-3 UM&t A46~w PETITION -ftrni Active Enforcement of Unlicensed Vacation Rentals in the City of Ashland To Ashland Mayor and Councilors: Despite the recent recession, record numbers of tourists are visiting Ashland and requiring lodging. Interestingly, in recent years, Ashland's transient occupancy tax (TOT) yield has decreased and occupancy in licensed lodging businesses has declined. This is primarily due to the fact that unlicensed vacation rentals are taking business away from licensed lodging establishments and are not paying TOT to the city and state. In addition to cheating the city and state of TOT dollars, these illegal operations are endangering the lives of visitors by not being properly licensed and inspected; as well as not carrying proper liability insurance. This practice has been going on for a long time with the full knowledge of city administration. The number of properties operating illegally has mushroomed as can be seen by advertising on VRBO.com, Airbnb.com, homeaway.com, craigslist.com and other web sites. There are now as many if not more unlicensed operations in the city as the licensed establishments. The city of Ashland is losing at a minimum $100,000 and potentially up to $200,000 annually in TOT by allowing these unlicensed operations to continue. These figures do not include additional loss of revenues by the city in business license fees and commercial utility rates. Enough is enough! It has been over nine months since the last time this issue was brought to the attention of the City Council and City staff and nothing has been done to fix it. As a licensed and legally operating lodging business in the city of Ashland, I urge you to abandon any effort to accommodate these unlicensed operations. Instead, actively enforce the current rules and regulations on the book and shut down these illegal operations. Sincerely; (2013 gnature Date Jc1Hn F 5-(, 4y, ~utd12F Business//O1wner/Opeeratorr Name r L L J{2Y~cz e-l d fa1G~45l- Business Name nL3~ ©~iC ~apCP~ 0~ ~7S,2d Business Address I ~U ,O aA6O eoXA114 nfe?- PETITION tyW Active Enforcement of Unlicensed Vacation Rentals in the City of Ashland To Ashland Mayor and Councilors: Despite the recent recession, record numbers of tourists are visiting Ashland and requiring lodging. Interestingly, in recent years, Ashland's transient occupancy tax (TOT) yield has decreased and occupancy in licensed lodging businesses has declined. This is primarily due to the fact that unlicensed vacation rentals are taking business away from licensed lodging establishments and are not paying TOT to the city and state. In addition to cheating the city and state of TOT dollars, these illegal operations are endangering the lives of visitors by not being properly licensed and inspected; as well as not carrying proper liability insurance. This practice has been going on for a long time with the full knowledge of city administration. The number of properties operating illegally has mushroomed as can be seen by advertising on VRBO.com, Airbnb.com, homeaway.com, craigslist.com and other web sites. There are now as many if not more unlicensed operations in the city as the licensed establishments. The city of Ashland is losing at a minimum $100,000 and potentially up to $200,000 annually in TOT by allowing these unlicensed operations to continue. These figures do not include additional loss of revenues by the city in business license fees and commercial utility rates. Enough is enough! It has been over nine months since the last time this issue was brought to the attention of the City Council and City staff and nothing has been done to fix it. As a licensed and legally operating lodging business in the city of Ashland, I urge you to abandon any effort to accommodate these unlicensed operations. Instead, actively enforce the current rules and regulations on the book and shut down these illegal operations. Sincerely; 3/~(zo13 Signatui Date a " R4fi~ Bu ' ess O er/Ope ator Name -rm Business Name POW Ig9I IV 9 3b Business Address 07. sw taa~ PETITION Active Enforcement of Unlicensed Vacation Rentals in the City of Ashland To Ashland Mayor and Councilors: Despite the recent recession, record numbers of tourists are visiting Ashland and requiring lodging. Interestingly, in recent years, Ashland's transient occupancy tax (TOI) yield has decreased and occupancy in licensed lodging businesses has declined. This is primarily due to the fact that unlicensed vacation rentals are taking business away from licensed lodging establishments and are not paying TOT to the city and state. In addition to cheating the city and state of TOT dollars, these illegal operations are endangering the lives of visitors by not being properly licensed and inspected; as well as not carrying proper liability insurance. This practice has been going on for a long time with the full knowledge of city administration. The number of properties operating illegally has mushroomed as can be seen by advertising on VRBO.com, Airbnb.com, homeaway.com, craigslist.com and other web sites. There are now as many if not more unlicensed operations in the city as the licensed establishments. The city of Ashland is losing at a minimum $100,000 and potentially up to $200,000 annually in TOT by allowing these unlicensed operations to continue. These figures do not include additional loss of revenues by the city in business license fees and commercial utility rates. Enough is enough! It has been over nine months since the last time this issue was brought to the attention of the City Council and City staff and nothing has been done to fix it. As a licensed and legally operating lodging business in the city of Ashland, 1 urge you to abandon any effort to accommodate these unlicensed operations. Instead, actively enforce the current rules and regulations on the book and shut down these illegal operations. Sincerely; ~Sign3 re //,A Date BusessTOwner/~ OperAtot Name :ELW- \I(c-fo~► flr~1 o Q u~~ V&CA76O~rJ Business Name Business Address destinatioHiM ND Chamber of Commerce March 1, 2013 Dear Mayor and City Council, It has come to our attention that a number of unlicensed lodging rentals exist within the City of Ashland who do not carry business licenses, insurance or collect appropriate taxes to operate as legal businesses. These unlicensed rentals are offering unfair competition to licensed operations abiding by the law, and the City is not collecting the revenue from their operations. The Ashland Chamber of Commerce Board of Directors unanimously voted to encourage the City Council to enact an ordinance requiring the owners of all dwelling units, including single family homes, that are rented by the day or the week, to comply with all of the requirements applicable to overnight accommodations, including but not limited to the requirement of obtaining a business license and payment of the Transient Occupancy Tax, and provide a penalty of $250 per day for each day that the ordinance is violated. We also recognize and support the need to hire a code enforcement officer with the authority to issue citations for municipal code violations. Thank you for your consideration of this important issue for our lodging and tourism sector. Sincerely, Lisa Beam President Board of Directors Ashland Chamber of Commerce 110 East Main St • PO Box 1360 • Ashland OR 97520 (541) 482-3486 Fax: (541) 482-2350 www. ashlandchambencom JULIA NVOOSNAM Textile &.Surface Design 252 Amesport Landing Half Moon Bay; California 4ta 726-8614 E February 25, 2013 RECEIVED To: The Mayor; City Council, and Bill Molnar, City of Ashland Community Development Department NAR Q 1 2(113 Greetings, It has come to my attention that there is to be a study session to address the long standing difficulty of city codes pertaining to land use within Ashland city limits. I wish to give some input in writing to the adjustments needed to fit the actual land use situation in residential zones. I am aware I can only speak for myself, buts know that there are many other citizens in.the same, or nearly the same position as 1, who for years have wanted this issue to be resolved through action of the city council.. I believe that in order for city government to run responsibly there needs to be focused logic on thegoals.to be achieved with an eye to the best win-win solution to problems: 1 am.again urging.you to provide specific code's in the land use plamto allow private homes to be rented short term without the owner occupancy clause so absolutely necessary to income properties operating as B&B's. Need I mention thata B&B and a self catering unit are two.different options, with two different market shares. People wanting the B&B experience are so very, very fortunate that n,Ashland we,have some of the finest places to stay for that experience that you can find anywhere, in the US or Europe. Obviously Ashland also has many options. for motel/hotel stays, and very acceptable camping options. There is, however, a large group of visitors whose main desire when staying in Ashland is generally not met. Check the demographics of this group. They do not want to be bothered in the morning. They want to get up, fix their own breakfasts at their own,pace, and not have to get dressed or, have strangers in their vicinity. Are they grumpy people, well maybe sometimes, but these people usually do not have a happy stay in Ashland unless a self catering unitis available in-a quiet neighborhood. This.group 1s not usually willing or able to eat out three times a day; having the choice is whatmost appeals, though most often lunches and dinners are taken outside the, home. Impact on restaurants is minimal as many would not even visit the town at all without the eat-in option to stretch the budget, so it could be considered a_postive - more individuals possibly choosing a night out or brunch somewhere. i z My family is actually a part of this group - we travel frequently and always look for self catering because it suits our need for relaxation and the ability to provide for our dietary restrictions, not always easily met at formal establishments. Self catering facilities are usually not in a downtown business district with difficult parking and noisy atmosphere, homes which welcome visitors as if they are a part of a family. Due to my husband's employment, I have had to live in CA for a considerable period of time and will until retirement. As a result I have had to rent my home in Ashland full time through several different professional managers. Mostly it's been a very difficult thing to do as long term renters are very hard on property, and sadly mine has suffered greatly from the experience, even to the extent of having to have the sheriff evict some tenants. The cost and worry involved in this is surprising, never covering the expenses, and the cleanup and reconstruction of my family home and historic garden is extremely upsetting. Renting on a monthly basis is also legal and slightly better from the standpoint of having the option to be able to live in my home on a part time basis for occasional local work and for our family holidays, but there are few visitors wanting monthly accommodation. Allowing my home to sit empty is an invitation for crime. We have had trouble doing this in the past, and I am concerned for my neighbors when there's no one. occupying my home. We have a neighborhood watch group, but it's better not to have an'attractive nuisance' situation. I am fortunate that my neighbors are all really great people and friends with whom I enjoy a great life when 1 am living and working in town. When 1 am not in town, being able to rent to friends, relatives, and friends of both on a nightly basis would be such a relief in that the worry of how the place is being treated would be alleviated. The upkeep would be covered financially so neither I nor the city would need to be concerned about fire hazard due to un-mown grass, no maintenance and as noted before, empty houses draw pests of the animal and human persuasion. In the past I have several times spoken to individuals in the planning dept. regarding the need to have a separate designation for nightly rentals in the residential zones. To be fair, they have encouraged me to speak to this problem of adapting the codes (not up to me or it would have been done long ago!) And to save my time and money, I was advised not to apply for a conditional use permit since 1 would never get one because I don't live there full time, neither would I get my hefty payment for the consideration returned from the city for my efforts to obtain the impossible CUP. i i 3 The thing that bothers me the most about this is why the city doesn't seem to want to accept additional bed tax money. I hear all the grief about under funded services, poor oversight of urban areas, downturn in the economy..... I would be so grateful to be able to have a license to provide a lovely experience to responsible guests, not just friends, be able to better afford the taxes and maintenance on my home during my absence, and give city tax money to my hometown. What's the problem here? This is a classic win-win situation. Changing one code requirement would give the city a very large boost from the taxes collected, and homes would be saved from foreclosure, dereliction or both. Don't condue to raise utility rates, allow some funds to flow in from a new source. Run the numbers -1 hear that there are many 'illegal' units being rented. Consider the change of fortune for the city and for the owners if this one small change is made. Other people I know in town have looked into this and it would seem to amount to an estimated $400K to $500K in tax revenue to the city each year. Personally I'm baffled why the council hasn't acted on this sooner. Is there some unacknowledged anti-business feeling in the city government? Special interests" more profitable in some way to the city? Are other regulations bogging down progress? What? What are the real reasons the City will not provide suitable codes for self catering? Once we know, I'm certain things will change for the betterment to both citizens and city government. First - be clear, this is my home, = an investment property, and it will never be for sale. Other owners may have other reasons, but the facts remain the same; looking at the real 'on the ground' situation, there are obvious pro and con facts. Let me list those as I have experienced them: Long term renters damage property, sometimes unalterably. Monthly renters are not so careful and appreciative of personal property as nightly renters, small deposits are easily relinquished as a sort of cleaning payment, this way they don't bother with basic maintenance and the mess left is worse. Nightly renters have a vested.interest in maintaining the property, they don't settle in long enough to feel a proprietorial attitude and are appreciative of the surroundings as get to know them briefly. Any renters are in need of vetting, and if you get bad ones, it's better if they are only I affecting the property for a short time. Most nicer homes are in the historical districts, and if not operating as a B&B they should not be expected to conform to the same assumed use as a B&B, i.e. they shouldn't have to undergo unnecessary major remodeling of home or garden. i i 4 I believe that any self catering unit should be subjected to the approval of the immediate neighbors. If the house is not rented frequently, it will sit empty, have no continued maintenance, draw pests and transients, become a fire hazard, and the overall value of the property and the neighboring properties will decrease. If my house must sit empty for a majority of days, this means not only does the city lose revenue from lack of utility payments, lowering valuations, the neighborhood loses visual upkeep, and I lose both my family home and chosen future retirement residence? It has been good to see that the money coming in from 'outside' the valley, the tourist dollars, have kept most of the homes in town used for B&B's in good shape, those owned by families who can afford to have two or three investment homes are able to keep up their properties, what about the home owner's in the gap between these two groups? One would think it is an easy fix. Thank you for your consideration, Sincerely, a)04 I)DLO~