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HomeMy WebLinkAbout2013-0917 Documents Submitted JM4 AdM* ROGUE VALLEY ASSOCIATION OF P•H, Ste} {u^^ REALTORS The Voice For Real Estate® In The Rogue Valley 629 Franquette St. ♦ Medford, OR 97501-7831 ♦ (541) 779-9421 ♦ Fax (541) 770-7111 ♦ www.somis.com September 12, 2013 City of Ashland Attn: Mayor John Stromberg 20 East Main Street Ashland, OR 97520 Dear Mayor Stromberg and City Council, I am writing to you on behalf of the Board of Directors and the almost 800 members of the Rogue Valley Association of REALTORS@ regarding short-term rentals and the City's consideration of the issue. REALTORS@ are strong proponents of personal property rights, and we are fully aware that without reasonable local regulation, property rights and values can be negatively impacted. We commend you for taking a public approach to reviewing this issue, which impacts both residential and commercial properties and the consumers who use them. As representatives for many of the property owners and consumers of real estate services in Ashland, we ask that we be granted standing in this public process. The marketplace clearly demands more short-term rentals than can be provided under the current ordinance structure, but we recognize that some of those providing short-term rentals are not complying with current ordinances or paying business license fees or accommodation taxes. It is important that any modifications to current ordinances regarding short-term rentals be clear, understandable and enforceable, that the rights of property owners in ALL zoning districts and neighborhoods be taken into account, and that any changes properly reflect the needs of a tourist-oriented community like Ashland. We have and will continue to closely monitor the discussions and proposals being made related to short term vacation rentals. We ask that any ordinance revisions proposed balance the needs of those who are complying with current ordinances with a need to bring reasonable regulation to those who are not. We ask that whatever decision gets made is as fair as possible to everyone, from the person who doesn't rent their property to the homeowner renting a single room up to the professional bed and breakfast establishment. We also ask that there be a clear and concise explanation of the decision with enough lead time prior to its effective date that all impacted will be prepared for any adjustments and will have time to properly comply. As you review the current ordinances, please consider us as a resource, willing to offer our assistance and insights about how proposed change might impact property rights. As REALTORS®, we are intimately acquainted with both residential and commercial properties and the rights and usage expectations that the owners of those properties have. We would be privileged to assist in any way necessary and to answer questions you may have. If you have questions or would like additional perspectives about this issue, please contact our Legislative Committee Chair, Krista Laulainen (541-482-5590 or krista (cDashlandorowest.com) or our Executive Officer, Tina Grimes (541-770-7060 or tinaaroguevallevrealtors.ora). They will be pleased to offer whatever assistance is needed. e Don Livingoo 013 President jln,Lj rni}I'c~ Staff ~ P, L, - S T l-f F~, Urals `I CITY OF ASHLAND Memo DATE: 2/27/2013 TO: Honorable Mayor and City Council FROM: Ashland Planning Commission RE: Preliminary feedback on potential code amendments related to vacation home rentals Summary The Planning Commission discussed zoning regulations for short term vacation rentals at two meetings in January and February. All public comment received was from owners of existing legal travellers accommodations and emphasized the need for compliance with current regulations. Discussion addressed the question of whether there was increased demand that warranted extending access to travellers' accommodation permits to additional categories or areas and the potential impacts of changing regulations. The Commission concluded that they had not heard convincing evidence that there is more demand for travellers' accommodations than can be met by current supply. However there is a type of demand that is not being met within our current regulations, that is the desire for a short term rental of a single unit, complete home without owners on the premises. These travellers are seeking greater privacy or a place to host family-style events. The Commission decided to recommend that Ashland expand our regulations to allow for some single unit, non-owner occupied, short term home rentals with the following restrictions: • must be located in a multi-family zoning district; and • must be within walking distance of the downtown area It was further suggested that Ashland may wish to set a limit on the total number of such units that are available and can be given such permits, similar to the limit on drive-up window use permits. The Commission also recommends adopting language that prohibits the advertising of non-permitted short term rentals. The Commission supports maintaining the existing requirement that a conditional use permit be obtained in order to operate a Bed and Breakfast as well as an individual vacation home rental. The Commission does not propose removing the current prohibition of operating short term, overnight rentals in single family zoning districts (R-1). AsIdand Planning Commission 20 E Main street Ashland, Oregon 97520 P=, w ashiand orm Page 1 52 r Backeround On August 6, 2012, the Council requested that the Commission evaluate the issue about the growth in numbers of unlicensed vacation home rentals. The Housing Commission was also asked to weigh in on the issue and forward their thoughts to the Council. The Planning Commission held a public meeting on January 22, and again on February 12, 2013 to review and make refinements to their recommendation. Additionally, the Community Development Director introduced the item at the Housing Commission's meeting on October 24, 2012, with the Housing Commission again discussing the issue at their January 27, 2013 meeting where they provided a recommendation to the Commission and Council. The Planning Commission discussed the appropriateness and potential implications of amending the Land Use Code so that additional opportunities for short term home rentals could be increased. Overall, there appears to be general consensus that the current standards regulating short term vacation rentals have been effective in providing accommodations quite different from traditional hotel or motels, while fitting in well with multi-family residential areas. Recommendation In order to facilitate our discussion on this matter, the Commission was provided with a few basic options to consider. Our recommendation or suggestions for possible code amendments have been described below. 1. Should changes to the Land Use Ordinance be considered that provide more opportunity for property owners to operate vacation home rentals? Since the initial adoption of Ashland's Travelers' Accommodation Ordinance in the early 80's, the code has been amended as a way to adjust to new conditions and concerns. Given the measurable increase in non-licensed, individual vacation home rentals, the Commission feels it is timely to consider whether travellers' needs are being met by current permitted accommodations. Testimony was given by operators of current permitted travellers accommodations that vacancy rates indicate the ability to meet current demand, however travellers may be choosing non- permitted offerings that are lower in price and close enough to the downtown area to walk. Testimony indicated the belief that non-compliant rentals can offer a lower price because they are not burdened with the costs associated with maintaining compliance. Commissioners concluded that Ashland should find ways to enforce compliance with regulations, but also expand the types of accommodations to include some single units in the downtown area that are non-owner-occupied. 2. Currently, vacation home rentals are permitted as a conditional use in multi-family zoning districts (R-2 and R-3) on properties abutting or located within 200 feet of an arterial or collector street. Should the area eligible for establishing a vacation home rental be increased to include: a. All land within Ashland's multi-family zoning districts? and !Ashland Planting Commission 20 E Main Street Ashland, Oregon 97520 w ashland or us Page 2 53 The Commission strongly considered allowing all properties within multi-family zoning districts (R-2 & R-3) to be eligible to submit a land use application for short term vacation rentals. Currently, only properties abutting or within 200 feet of a major street, such as an arterial and collector, are eligible to request a conditional use permit. While the intent of the 200-foot rule was likely to direct the additional traffic from vacation rentals to a limited area adjacent to or within a block of streets designed and anticipated to accommodated greater loads, this may not be a significant factor given the proximity of much of the city's multi-family lands to major streets with our network. An evaluation of this recommendation shows that this would result in 600 additional properties being eligible to operate vacation rentals, an approximately 40 percent increase above the current number of properties. The Commission believes that this approach may draw the least neighborhood notice as the city's multi-family zoning districts already allow a wide variety of uses. They noted that the Comprehensive Plan supports economic uses in multi-family zoning where it does not impact the primary residential use. This could also be the option, however, most likely to impact more existing and future rental housing, since those are generally located in the R-2 and R-3 zones. b. Should a property owner/business-owner/manager be required to live on site in the case of a property where only one vacation home rental is in operation? The Commission believes that it would not create significantly greater impacts if we did not require the propertylbusiness owner or site manager to reside on the property in cases where the use of the site consists only of a single, individual vacation home rental in the downtown area. If the Council chooses to make this change, it is recommended that the code be amended to require that 24-hour contact information be posted in the home, as well as made available to surrounding neighbors within a specified distance from the property. As part of the discussion, a commissioner expressed concern about the potential impacts of having too many individual vacation homes without an on-site owner/manager concentrated in a given area. "Could we run the possibility of certain neighborhoods taking on a character more like Sunriver, Oregon?" Another commissioner expressed concern for neighbors in the area and the need for them to readily contact the property owner or property management should major problems arise. Another commissioner proposed limiting the total number of units of this type that would be permitted. 3. Currently, vacation home rentals are prohibited as a use in single family zoning districts (R-1). Should lands within Ashland's single family zoning districts be eligible for - establishing a vacation home rental through the conditional use procedure? The Commission recommended that Council continue to prohibit short term vacation rentals in single family (R-1) zoning districts. In general, the Commission would prefer to make small changes initially and evaluate the effectiveness of those changes, rather than opening up larger areas of the city to be eligible when not fully understanding the potential impacts. Ashland Planning Commission 20 E Main street Ashland, Oregon 97520 waw.ashland or us Page 3 54 1 4. In all cases above, should establishing a vacation home rental be subject to a land use application, such as a conditional use permit, with public notice providing to surrounding neighbors? The Commission suggests that the decision of whether to permit short term vacation home rentals should be handled through the conditional use permit process, as currently required. This process allows for surrounding property owners to be notified and key impacts addressed through conditions of approval. Operation of a short term vacation rental in a residential zone represents a quasi-commercial use in the form of providing an overnight accommodation for travelers and visitors. The Housing Element of Ashland's Comprehensive Plan states that mixed uses often create a more interesting neighborhood environment and should be considered wherever they will not disrupt existing residential area. The Plan states this policy should be implemented through the list of Conditional Uses in multi-family zones and the adopted approval procedures. We believe the recommendation for maintaining the requirement that these operations, regardless of scale, require a conditional use permit is consistent with existing Plan policies. Other Considerations 1. Code Compliance The Commission did not feel that concerns raised by citizens concerning the need for city staff to be more diligent in their efforts to seek compliance with existing city codes was within their scope of action. Historically, compliance with provisions related to travelers' accommodations in the Ashland Land Use Ordinance (ALUO) has been enforced on a case by case basis, initiated by written neighbor complaints as well as owners of approved visitor accommodations. The Commission wished to draw attention to the fact that noncompliant vacation rentals go beyond being out of conformance with the ALUO, and are also not paying commercial utility rates, transient occupancy taxes or business licensing fees. It seems unlikely that simply expanding the number of properties eligible to request land use approval for a vacation home rental will solve the compliance problem. Enforcement would ultimately depend on more aggressive actions that may necessitate a new approach and very likely additional resources. The Commission also believed that there are some proactive alternatives to code compliance that should be explored. This would include making a list of approved accommodations readily available to traveler's seeking to visit Ashland, as well as evaluating a formal certification process that assists to clearly identify licensed and approved overnight accommodations. 2. Limitation on Concentrations Individual members expressed concerns over possible adverse impacts that a concentration of legitimately approved vacation rentals may have upon a neighborhood. Other code provisions for possible consideration might include a limitation on total number of vacation homes; a limitation on new vacation homes to be added each year and/or a limitation on numbers of vacation homes Ashland Planning Commiselon 20 E Main street , Ashland, Oregon .97520 v ashlandof us Page 4 55 within a certain distance of each other. While uncertain of the level of success, these represent examples of requirements employed by other communities. Ashland Planning Commission 20 E Main Street Ashland, Oregon 97520 w ashland or us Page 5 56 SJbMAk-A-b can+~1.~Y&- pica-&- 0(x,+1-N Cynthia Brown 171 Church Street Ashland (for 40 years) Ashland City Council I'm here tonight to give the council my impressions of the colors selected for the information booth: The drab and uncomely gray pavers need a color to offset the cold and unfriendly feel the entire plaza projects. Out of the two color choices, I would choose a variation of the green and gold, which are warmer colors than the blue. In the past I was co-owner of an art gallery on the Plaza and am disappointed with the "professional designers" for their choice of thousands of dark gray pavers that devastated a large area that could have be welcoming. Involve the community to come up with ideas (and I have heard of some great one) to trade out the gray pavers with a cheerful pattern and add more green by way of ground cover. It's not that hard to admit a mistake and correct it, you will be respected and I just might vote for you.