HomeMy WebLinkAbout2013-01-22 Planning PACKET
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ASHLAND PLANNING COMMISSION
SPECIAL MEETING
JANUARY 22, 2013
AGENDA
1. CALL TO ORDER: 7:00 PM, Civic Center Council Chambers, 1175 E. Main Street
II. ANNOUNCEMENTS
III. PUBLIC FORUM
IV. UNFINISHED BUSINESS
A. Approval of Findings for PA-2012-01511, Transportation System Plan Update.
V. DISCUSSION ITEMS
A. Potential Code Amendments Related to the Establishment & Operation of Short-Term Vacation
Home Rentals.
VI. ADJOURNMENT
CITY OF
S L A AW&I
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ADA Title 1).
BEFORE THE PLANNING COMMISSION
City of Ashland, Jackson County, Oregon
December 11, 2012
IN THE MATTER OF PLANNING ACTION 42012-01511, A REQUEST FOR )
A PROPOSAL TO ADOPT AN UPDATED TRANSPORTATION SYSTEM )
PLAN (TSP) AS A SUPPORTING DOCUMENT TO THE ASHLAND )
COMPREHENSIVE PLAN, AND TO AMEND THE STREET DEDICATION ) RECOMMENDATION
MAP. )
APPLICANT: City of Ashland )
RECITALS:
1) The application is to adopt an updated Transportation System Plan (TSP) as a supporting document to
the Ashland Comprehensive Plan, and to amend the Street Dedication Map.
2) The requirements for a Legislative Amendment are described in 18.108.170 and 18.08.345 as
follows:
18.108.170 Legislative Amendments
A. It may be necessary from time to time to amend the text of the Land Use Ordinance or make other legislative
amendments in order to conform with the comprehensive plan or to meet other changes in circumstances and
conditions. A legislative amendment is a legislative act solely within the authority of the Council.
B. A legislative amendment may be initiated by the Council, by the Commission, or by application of a property
owner or resident of the City. The Commission shall conduct a public hearing on the proposed amendment at its
earliest practicable meeting after it is submitted, and within thirty days after the hearing, recommend to the Council,
approval, disapproval, or modification of the proposed amendment.
C. An application for amendment by a property owner or resident shall be filed with the Planning Department thirty
days prior to the Commission meeting at which the proposal is to be first considered. The application shall be
accompanied by the required fee.
D. Before taking final action on a proposed amendment, the Commission shall hold a public hearing. After receipt of
the report on the amendment from the Commission, the Council shall hold a public hearing on the amendment.
Notice of time and place of the public hearings and a brief description of the proposed amendment shall be given
notice in a newspaper of general circulation in the City not less than ten days prior to the date of hearing.
E. No application of a property owner or resident for a legislative amendment shall be considered by the
Commission within the twelve month period immediately following a previous denial of such request, except the
Commission may permit a new application if, in the opinion of the Commission, new evidence or a change of
TSP Update/Street Dedication Map Amendment December 11, 2012
PA 2012-01511 Page 1
circumstances warrant it.
SECTION 18.08.345. Legislative amendment.
An amendment to the text of the land use ordinance or the comprehensive plan or an amendment of the zoning
map, comprehensive plan maps or other official maps including the street dedication map described in section
18.82.050, for land involving numerous parcels under diverse ownerships.
3) The Planning Commission, following proper public notice, held a public hearing on December 11, 2012,
at which time testimony was received and exhibits were presented. The Planning Commission held their
deliberations and recommended to the City Council approval of the proposal to adopt the updated TSP and
to amend the Street Dedication Map.
Now, therefore, The Planning Commission of the City of Ashland recommends as follows:
SECTION 1. EXHIBITS
For the purposes of reference to this recommendation, the attached index of exhibits, data, and
testimony will be used.
SECTION 2. RECOMMENDATION
2.1 The Planning Commission finds that it has received all information necessary to make a
recommendation based on the Staff Report, public hearing testimony and the exhibits received.
2.2 The Planning Commission finds that the planning process made efforts to include a wide
range of people including neighbors, property owners, business owners, community groups, and the
general public, and to provide a variety of ways to learn about the project, participate in the plan
development and provide comments. Additionally, the Planning Commission finds that the public
hearing on December 11, 2012 was properly noticed in the newspaper in accordance with
18.108.170.D and by mail to property owners impacted by the proposed amendments to the Street
Dedication Map in accordance with ORS 227.186.
The draft TSP document is the product of a two and a half year planning process that began in
June 2010, with a general timeline as follows.
• System Analysis and Evaluation of Options: The first year was used for analysis of the
existing system, projecting the transportation demand 20 years in the future, and developing
a series of technical memos and white papers addressing the various needs and options for
the different modes of transportation. During this time there was a concurrent series of
meetings in which the Technical Advisory Committee (TAC), Transportation Commission
(TC) and Planning Commission (PC) reviewed the technical memos and white papers.
• Draft Preferred and Financially Constrained Plan: The next three months involved
compiling the draft plan, and joint meetings of the TC and PC to review the materials.
TSP Update/Street Dedication Map Amendment December 11, 2012
PA 2012-01511 Page 2
• Plan Refinement: The TC and PC held a series of joint meetings to review and refine the
draft plan over the following year.
• Final Edits and Application: After the joint TC and PC meetings, the final edits were
made, and the formal application was submitted on October 26, 2012.
In addition to the joint TC and PC meetings held throughout the project, four additional public
meetings were spaced throughout the project - a TSP Update Workshop in March 2011, a
Temporary Road Diet TC Special Meeting in March 2011, a Temporary Road Diet Public
Meeting in June 2011, and a Transportation Forum in October 2012. Three briefings were given
on the TSP to the City Council, and these meetings were open to the public. Similarly, all of the
joint meetings of the TC and PC were open to the public, and included time for public
participation and comments.
2.3 Chapter 18.108 allows for legislative amendments "in order to conform with the
comprehensive plan or to meet other changes in circumstances or conditions." The process of
updating the TSP is primarily intended to address changes in conditions that have occurred
during the 15 years since the previous TSP was adopted and project needs based on that updated
analysis. The amendment of the Street Dedication Map is for consistency with the updated TSP,
and therefore also is to address changes in conditions.
The Planning Commission finds that the proposed plan and map amendments are consistent with
local goals and policies included in the Ashland Comprehensive Plan. Community-wide needs
include addressing the City's long range land use and transportation goals such as making streets
convenient, safe, accessible and attractive for users, and accommodating transportation needs
due to future population and employment growth. A variety of Ashland Comprehensive Plan
goals and policies, as detailed below, support the proposed TSP update and Street Dedication
Map amendment.
Housing
Goal Ensure a variety of dwelling types and provide housing opportunities for the total cross-
section of Ashland's population, consistent with preserving the character and appearance of the
city.
Policy 3) Regulation of residential uses shall be designed to complement, conserve and
continue the aesthetic character to of Ashland through use of the following techniques:
d) Street design and construction standards shall promote energy efficiency, air
quality, and minimal use of land. To this end, the City shall:
1) Adopt a master conceptual plan of future streets by size and use category.
2) Adopt minimum street width standards which provide only what is need for
adequate traffic flow and parking.
3) Incorporate bicycle and pedestrian traffic planning in street design.
4) Limit street slopes, requiring curvilinear streets along contours in steeper areas.
Economy
Goal To ensure that the local economy increases in its health, and diversifies in the number, type
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PA 2012-01511 Page 3
and size of businesses consistent with the local social needs, public service capability and the
retention of a high quality environment.
Policy 2) The City shall design the Land Use Ordinance to provide for:
b) Controlled access along Ashland Street to ensure limited points of common access
to businesses that are developing or undergoing development in this area.
c) Specific development guidelines which will ensure that:
2) Development along Siskiyou Boulevard and Ashland Street will not primarily
be automobile-oriented, but will also include attractive landscaping and designs
that encourage pedestrian, bicycle, and mass transit forms of travel.
Parks, Open Space and Aesthetics
Goal To provide the people of Ashland with a variety, quantity and quality of parks, park
facilities, open space, trails and visual resources sufficient for their needs.
Policy 13) Require street trees in all new residential, commercial and industrial development.
Policy 16) Develop an urban forest plan for the City including a street tree and a non-street
tree section, a tree resource inventory, a plan for preservation and renewal of trees of stature
and native species, long range maintenance plan, a plan to promote the greater use of trees
and shrubs on both public and private land, and plan to educate the public regarding the
benefits of trees on public right-of-ways.
Transportation
Street System Goal To provide all citizens with safe and convenient transportation while
reinforcing the recognition of public rights-of-way as critical public spaces.
Policy 28) Periodically assess future travel demand and corresponding capacity requirements
of street network. Choose a comprehensive transportation system approach to address any
capacity insufficiency that is consistent with the goals, polices and philosophy of the
Transportation Element of the Comprehensive Plan.
Pedestrian and Bicycle Goal To raise the priority of convenient, safe, accessible and attractive
walking and bicycling networks.
Policy 5) Target walkways and bikeway improvements that link neighborhoods, schools,
retail and service areas, employment centers and recreation areas.
Public Transit Goal To create a public transportation system that is linked to pedestrian, bicycle
and motor vehicle travel modes, and is as easy and efficient to use as driving a motor vehicle.
Policy 1) Develop pedestrian and bicycle networks that are linked to the public transportation
routes.
Commercial Freight and Passenger Goal To provide efficient and effective movement of
goods, services and passengers by air, rail, water, pipeline and highway freight transportation
while maintain the high quality of life of Ashland.
Policy 4) Maintain boulevard and avenue street facilities adequate for truck travel within
Ashland.
Energy, Air and Water Conservation
Goal The city shall strive, in every appropriate way, to reduce energy consumption within the
community.
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Policy 3) New Housing
e) The City shall address overall energy usage of new developments instead of just
looking at houses on an individual basis. Areas to be considered could be
transportation energy, recycling, composing, communal gardens, water usage and solar
access protection.
2.4 The Planning Commission finds that the adoption of the updated TSP and amended Street
Dedication Map is consistent with relevant Statewide Land Use Planning Goals as described
below.
Oregon Statewide Planning Goal 1 - Citizen Involvement requires a citizen involvement
program that insures the opportunity for citizens to be involved in all phases of the planning
process. Joint TC and PC meetings that were open to the public were held throughout the TSP
update and included public comment. Three briefings were given on the TSP to the City
Council, and these meetings were also open to the public. A public workshop was held in March
2011, a Transportation Forum was held in October 2012, as well as two public meetings on the
temporary road diet for North Main Street. A project website was in place throughout the
duration of the project and was updated with the latest project news, meetings and documents.
Additionally, comments could be submitted electronically via this site throughout the project.
Oregon Statewide Planning Goal 2 - Land Use Planning requires a land use planning process
and policy framework as a basis for all decision and actions related to use of land and to assure
an adequate factual base for such decisions and actions. Through Technical Advisory
Committee meetings, representative from the City, County, State (ODOT) and other stakeholders
conducted a review and evaluation of existing plans, polices, standards and laws that are relevant
to local transportation planning. In addition, a variety of data and projections including
population and employment data and forecasts, buildable lands information and transportation
data was used in the development of the plan.
Oregon Statewide Planning Goal 9 - Economic Development requires cities and counties to
address providing adequate opportunities for a variety of economic activities for residents. The
TSP includes projects and system adjustments to serve existing and planned commercial and
employment uses.
Oregon Statewide Planning Goal 10 - Housing requires cities and counties to provide for the
housing needs of citizens of the state, including a range of types and price/rent levels, and
allowing for flexibility of housing location, type and density. Existing and planned population
density and land use patterns were taken into consideration when developing the TSP to plan for
transportation facilities for future development of housing. The TSP was developed accounting
for growth in future residential trips, and the implementation measures were created to benefit all
users in the city.
Oregon Statewide Planning Goal 11 - Public Facilities and Services requires cities and counties
to provide for and develop a timely, orderly and efficient arrangement of public facilities and
services to serve as a framework for development. The TSP documents existing conditions and
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PA 2012-01511 Page 5
future needs for the transportation system in Ashland, and proposed improvements and
implementation measures are tailored to meet those future needs. The Street Dedication Map
identifies streets that will be needed in the future to connect the street network and provide
access to undeveloped areas within the Urban Growth Boundary (UGB).
Oregon Statewide Planning Goal 12 - Transportation, as well as OAR 660-012-0000 the
"Transportation Planning Rule," require cities and counties to provide a safe, convenient and
economic transportation system, and requires transportation planning to be in coordination with
land use planning. The TSP is an important component in the set of tools used to integrate land
use and transportation planning because the plan identifies the physical improvements to the
transportation system along with supporting studies and programs that will need to be funded and
built in the planning period ending in 2034. Existing and future conditions were analyzed to
create the final plan which addresses safety, mobility and accessibility as they relate to various
modes of transportation available in Ashland.
SECTION 3. DECISION
3.1 The updated TSP plans for a balanced city wide transportation system, with an emphasis on active
transportation, improving pedestrian and bicycle facilities, and enhancing transit service. The TSP is a
key component of implementing the vision of retaining Ashland's small-town character by planning for
"a transportation system that is integrated into the community and enhances Ashland's livability,
character and natural environment" as expressed in the Ashland Comprehensive Plan. In addition, the
TSP is an important resource that outlines the physical improvements to the transportation system along
with supporting studies and programs that will need to be funded and built in the planning period ending
in 2034.
Based on the record of the Public Hearing on this matter, the Planning Commission recommends approval
of the proposal to adopt the updated TSP and to amend the Street Dedication Map as described in Planning
Action 42012-0151, and recommends the following revisions to the final TSP document prior to the
second reading of ordinances adopting the TSP.
1. That references to the TSP serving as the Transportation Element of the Comprehensive Plan shall
be deleted from the document. The following sentence in the introduction on page 2 of the plan
shall be amended as follows: It also serves as the tr-anspor-tation element, tua as a supporting
document; of the Ashland Comprehensive Plan as required by state law." The following sentence
under Ashland Comprehensive Plan on page 34 of the plan shall be amended as follows: The
Comprehensive Plan was is the bedrock of goals, policies, and land use designation for updating the
TSP.
2. That the recently updated and adopted Jackson County coordinated population projection for
Ashland shall be included along with the "Historical and Project Ashland Population" chart in
Exhibit 2-3 on page 7.
3. That the Population Density by Census Block Group in Figure 2-4 on page 8 shall be update to
include the 2010 Census information.
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4. That the descriptions of pedestrian facility types on page 94 and bicycle facility types on pages 102-
103 shall be revised to reference the adopted Ashland Street Standards.
5. That the Updated City of Ashland Street Functional Classification Map in Figure 6-1 on page 87
shall be corrected to include a Neighborhood Street classification consistent with the Ashland
Comprehensive Plan and Street Standards (i.e. green lines appear to be mislabeled in legend as
Neighborhood Street).
6. That Table 10-3 Preferred Plan Intersection and Road Projects on page 138 shall include a notation
that the location of the connection from Clay Street to Tolman Creek Road shall be determined at the
time of redevelopment of the manufactured home park.
7. That Project (R44) Tolman Creek-Mistletoe Road Streetscape Enhancements in Table 10-3 Preferred
Plan Intersection and Road Projects on page 138 shall be revised to reflect the Phase I improvements
to Mistletoe Road described in the Croman Mill District Standards.
Planning Commission Approval Date
TSP Update/Street Dedication Map Amendment December 11, 2012
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Planning Commission Communication
January 22, 2013 Study Session
Potential Code Amendments Related to the Establishment
& Operation of Short-Term Vacation Home Rentals
FROM:
Bill Molnar, Community Development Director, molnarb@ashland.or.us
SUMMARY
City Code Compliance has seen a dramatic increase in the number of illegal short-term vacation
home/rentals being operated without zoning approval. In all cases, these illegal, short term
accommodations are avoiding paying local transient occupancy taxes, licensing fees and commercial
utility rates normally associated with the guest accommodation industry. The Council held a study
session in August 2012 in order for staff to provide an overview of the problem, explain the advantages
and disadvantages commonly related to short-term rentals and summarize code provisions that are
currently applied to these establishments by other Oregon communities. The Council requested that the
Planning Commission evaluate the existing code requirements, identify potential opportunities for
increasing flexibility and forward a recommendation for possible code amendments to the Council for
their direction.
Possible alternatives have been suggested for Commission consideration. Each will increase the
number of properties eligible to request a conditional use permit to operate a short term rental. Under
the first alternatives (Alternative B &C.), staff has suggested the possibility of expanding the
geographic area where vacation rentals are allowed to include all property within R-2 and R-3 multi-
family zoning districts, not only those properties located within 200-feet of a major street (i.e.
boulevard or collector). Under the second alternative (Alternatives D & E), lands eligible for short
term rental operations could be expanded to include properties within a single-family zoning district,
but only within 200-feet of a major city street. Lastly, the other variation among the two alternatives is
the question of whether or not to require the property/business owner to live on the property, or allow
an on-site property manager employed by the property owner/business owner.
BACKGROUND AND POLICY IMPLICATIONS:
Ashland's Travelers' Accommodation ordinance, which allows for short-term, overnight
accommodations within multi-family zones with approval of a conditional use permit, was established
in the early 1980s. The ordinance was intended to provide an opportunity for the owner of an existing
and preferably historic structure to gain additional income by offering overnight accommodations. In
turn, a portion of the revenue would be reinvested into improvements to the historic structure and site.
Most take the form of a Bed & Breakfast or Inn, nestled into an existing residential neighborhood.
Ashland limits short-term accommodations to multi-family districts throughout the city, while
specifically prohibiting the use in single-family zones. A conditional use permit is required before
short-term accommodation can be established and individual rooms made available to lease for short
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periods of time. Additionally, the existing ordinance limits eligibility to those multi-family properties
within 200 feet of a major street, arterial or collector. Finally, the property or business owner is
required to reside on the travelers' accommodation site, as a means of managing the accommodation as
well as providing a link between the neighborhood and this quasi-business establishment. It is
estimated that there are over 70 approved short-term accommodation establishments in the City,
including both residential and commercial zoning districts, accounting for approximately 1300 rooms.
More Recent Trends
Over the past several years, City Code Compliance staff has witnessed a substantial increase in the
number of short-term vacation rentals operating without the requisite land use approval and, as a
consequence, are not paying the city's transient occupancy taxes or obtaining a city business license.
These primarily include individual homes advertised as available for short stays on the increasingly
popular Vacation Rentals by Owner (VRBO) website. Many of these homes are being offered and
operated in single-family zoning districts, which prohibit the operation of short term (less than 30-
days) rentals. In June of 2012, approximately 40 letters were mailed to property owners believed to be
offering short term vacation rentals without the required land use approval, or within areas of the town
not zoned for short-term accommodations.
Summary of Issues and Concerns - Vacation Home Rentals
A review of information on this topic including phone interviews with other communities reveals that
many cities and counties are dealing with the issues and impacts related to short-term vacation home
rentals. While the values and politics of each community ultimately influences the approach and
eventual code language proposed to deal with short-term vacation home rentals, the following issues
and concerns commonly highlight local discussion and debate.
Protection of Neighborhood Character
A common municipal purpose for regulating short-term rental housing is to protect the character of
existing residential neighborhoods. Tension between permanent residents and operators of short-term
vacation home rentals arise due to increased traffic, noise, impacts to available on-street parking and
other potentially disruptive activities (e.g. late night celebrations). Another concern cited, yet often
difficult to measure, is the perception that too many short-term vacation rentals in an a neighborhood
could lead to a decreased sense of "localness," based on the idea that permanent residents often hold a
greater attachment to local social networks and community involvement.
2010 Census data estimates the average household size of Ashland at 2.03 persons, while an informal
survey of short-term vacation rentals in Ashland listed on the VBRO website offers accommodations
for an average of seven persons. Similarly, statistics compiled by the North Carolina Vacation
Managers Association estimates that the average number of people utilizing a vacation rental per night
is six persons. The impact of six people in a household per night versus the average Ashland household
of two can be quite significant in terms of noise generation, traffic, water and wastewater usage, solid
waste generation and road maintenance.
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Effects on Housing Supply and Affordability
The local housing market likely may be impacted by the proliferation of illegal, short-term vacation
home rentals. According to the 2010 Census, 357 or 3.4% of all housing units in the City of Ashland
are for seasonal, recreational, or occasional use. This is an increase of 140% from the 2000 census that
showed 150 seasonal, recreational, or occasional use units, making up only 1.7% of the City's total
housing stock. The economic benefits to property owners from the conversion of existing residences to
short-term vacation homes can potentially drive up prices of existing homes. Additionally, an increase
in short-term vacation homes can lead to a reduction in the availability in the number of long-term,
single-family home rentals. This is because the economic benefits to the property owner from
operating a short-term vacation home are potentially much greater than that of a longer term, year
round home rental.
Physical Impacts
While not necessarily the case in Ashland, some communities cite the need for restrictions on short-
term vacation home rentals in order to protect the character of their residential neighborhoods. The
underlying rationale is that short-term home rentals in single-family zones generally are not owner-
occupied and therefore are less likely to be cared for to the same degree as permanent residences.
Other communities note, however, that it is in the best interest of the owners of short-term vacation
homes to take good care of their property in order to have a successful business and, therefore, have a
strong incentive to select guests who are respectful of their properties.
Site Management
The City's Travelers Accommodation code provisions for licensed establishments within a multi-
family residential district require the property owner or business owner to reside on the property. This
reflects a more traditional innkeeper model. In carrying out compliance on unlawful vacation home
rentals within Ashland, it is clear that few if any have a property owner or property management
representative living on the property. A property management presence provides neighbors or the City
an ability to readily access an individual should complaints or concerns arise.
Increased Choice
Short-term vacation home rentals in existing neighborhoods can offer a greater sense of freedom and
choice to visitors. In general, short-term vacation home rentals differ from bed & breakfasts, hotels,
motels, and other "lodging" uses by providing complete, independent living facilities for one or more
persons, including permanent provisions for living, sleeping, eating, cooking and sanitation. Although
Ashland's bed & breakfasts often are similar in appearance and location to many short-term vacation
home rentals, they are distinguishable by the requirement that the property or business owner reside
onsite. This standard ensures that the person(s) responsible for the daily operations of the
accommodation and compliance with the conditions of the land use application are housed on the
property, while also being integrated into and accessible to the immediate neighborhood should
concerns arise.
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Fairer Competition with Licensed Lodging
Existing B&B's owners/operators with valid land use approvals have complained to Code Compliance
staff about the unfair advantage the illegal, unlicensed vacation homes pose. This is primarily due to
the fact that these unlicensed homes have not had to incur a variety of expenses, such as a land use
permit (i.e. conditional use permit), city business license, transient occupancy tax and commercial
utility rates, and building code issues related to safety inspections.
Impacts to the Local Economy
For Ashland with its robust tourist industry, short-term vacation home rentals represent a potential
additional source of tax revenue. In addition to Ashland's Transient Occupancy Tax (TOT),
establishments offering overnight accommodation are required to hold and annually renew a business
license, as well as have a valid land use approval (i.e. conditional use permit and other applicable
permit fees).
As a tool for economic growth, short-term vacation home rentals can create considerable economic
benefits within a community through the creation of jobs, and attracting visitors who spend money in
local shops and restaurants. Many of the jobs created by short-term vacation home rentals, however,
often are low skilled, low paying and seasonal or part time. This can create a drain on the local
workforce and exacerbate issues related to continuing a cycle of lower paying jobs in a community
with an expensive housing market.
Studies have identified both negative and positive property tax impacts from an increase in short-term
vacation rentals on small, medium and large communities. In some instances, the increased value of
vacation rental properties has driven the price of property up and therefore property taxes. This can
have the effect of raising the property tax rate on year round citizens and in some communities have
driven lower income residents out of the community altogether.
Summary of Potential Impacts - Short Term Rentals in Single-Family zones
Positive Impacts
• TOT, business license and miscellaneous permit fees
• Increased choice of accommodation types, especially for families
• Income source for individual property owners
• Employment opportunities
Negative Impacts
• Neighborhood Impacts - noise, traffic, physical changes to site, etc.
• Reduced housing and long-term rental availability for residents
• Decreased sense of localness
• Increased stress on infrastructure and services
FISCAL IMPLICATIONS:
A review a other communities indicate that expanding short-term rental restrictions to include other
areas of Ashland (i.e. single family neighborhoods) may put additional administrative burdens on the
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local government, including the processing of land use and building permits, licensing and registration
applications and code compliance. Building officials are likely to be faced with an increased volume of
required inspections. Code Compliance personnel and the police officers may need to assume
additional enforcement duties under a short-term rental ordinance. Down the road, this could lead to a
discussion about the potential reinstatement of the citywide Code Compliance position that was
eliminated in January 2009.
STAFF RECOMMENDATION AND SUGGESTED COMMISSION ACTION:
Changes to land use requirements related to short-term vacation home rentals should be undertaken
with caution and an understanding of the potential effects to longstanding community goals for
maintaining strong neighborhoods, and a diverse, permanent housing inventory designed to serve a
wide range of households representing a variety of household incomes.
The City Council will have a study session on March 4, 2013 to discuss this item. The Commission has
been asked to forward a recommendation onto the Council. If the Commission suggests amending the
language in the current ordinance to increase options for the operation of short term home rentals, the
Council could initiate that a code amendment be prepared by staff. At the March 4, 2013 Council
Study Session, Staff would like to provide a summary of the Planning Commission recommendation
on this topic. I few questions have been attached to assist the Commission in forwarding an opinion to
Council on this subject.
ATTACHMENTS:
■ Possible Alternatives Code Changes
■ Discussion Questions
■ Informal Survey of Other Cities - Matrix
■ Map of Ashland - Identification of areas zoned for Travelers' Accommodations (Hotel, Motels,
and Bed & Breakfasts)
■ Document submitted by Mark Dennett
■ Document submitted by Ashland Bed & Breakfast Network
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Possible Ordinance Changes
1. Clarification of Definitions
Chapter 18 of the Ashland Municipal Code, Land Use Ordinance, includes the following
definition for Travelers Accommodations. These establishments are commonly known
as Bed and Breakfasts or Inns, are located within multi-family residential zoning
districts, often consist of multiple accommodation units and require the property owner
or business owner to reside on the property.
98.08.795 Traveler's Accommodations
Any establishment in a residential zone having rooms or dwellings rented or kept for
rent to travelers or transients for a charge or fee paid or to be paid for rental or use
of such facilities for a period of less than thirty (30) days.
The proposed code changes are intended to address the commercial use of a single,
individual residence by renting the home for a period of time less than 30 consecutive
days, by advance reservation or arrangement. The following is an example of a
definition for a vacation home rental:
Vacation Home Rental means an individual dwelling unit rented for the purpose of
overnight lodging for a period of not less than one night and not more than 29 days
other than ongoing month-to-month tenancy granted to the same renter for the same
dwelling.
2. Expanding the areas in which Vacation Home Rentals are permitted - Possible
alternatives
Alternative A - No Changes: Maintain the existing ordinance language and evaluate
more aggressive enforcement efforts. Short term vacation home rentals are currently
permitted and approved through a conditional use process, but only for eligible
properties located in R-2 and R-3 multi-family zoning districts, within 200 feet of a
collector or arterial. The property/business owner is required to live on site.
Alternative B - Multi-Family zoning districts: Expand the geographic area where
short term vacation home rentals are permitted to include all property within R-2 and R-
3 multi-family zoning districts. The property/business owner would be required to live on
site, even in cases involving the operation of an individual "vacation home rental". The
number of units is determined by the existing formula. A conditional use permit would be
required.
Neighborhood Impacts - Addressed through conditional use permit. Some impact can be expected
due to other permitted and conditionally allowed uses in the zone. Over concentration likely would be
disruptive to the existing neighborhood character.
Needed Housing - Could reduce the amount of available rental and/or ownership housing
01.22.13 Commission Study Session
Staff Exhibit 1 - Page 1
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CITY OF
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Choice - Increases the number of properties eligible to operate vacation rentals
Management - Resident management required
Additional Permits & Licenses - Business license, TOT tax, commercial utility rates, county health
department, etc.
Alternative B. (1): Expand the geographic area where vacation rentals are
permitted to include all property within R-2 and R-3 multi-family zoning districts.
In the case of an application to operate an individual "vacation home rental", the
property/business owner would not be required to live on site (or an onsite
manager could be required). The number of vacation home rental units is
determined by the existing formula. A conditional use permit would be required.
Neighborhood Impacts - Addressed through conditional use permit. Some impact can be expected
due to other permitted and conditionally allowed uses in the zone. Over concentration likely would be
disruptive to the existing neighborhood character.
Needed Housing - Could reduce the amount of available rental and/or ownership housing
Choice - Increases the number of properties eligible to operate vacation rentals
Management - Resident management not required
Additional Permits & Licenses - Business license, TOT tax, commercial utility rates, county health
department, etc.
Alternative C: Expand the geographic area where vacation home rentals are permitted
to include R-1, single- family zoning districts, but only for properties within 200-feet of a
major street (i.e. arterial, collector, or neighborhood collector). The number of vacation
home rental units cannot exceed one per tax lot. The property/business owner or tenant
manager would be required to live on site. A conditional use permit would be required.
Neighborhood Impacts - Addressed through conditional use permit. A relatively small number of
frequently in use short term rentals could be disruptive to the existing neighborhood character.
Needed Housing - Could reduce the amount of available rental and/or ownership housing
Choice - Increases the number of properties eligible to operate vacation rentals
Management - Resident management required
Additional Permits & Licenses - Business license, TOT tax, commercial utility rates, county health
department, etc.
Alternative C. (1): Expand the geographic area where vacation rentals are
permitted to include R-1, single- family zoning districts, but only for properties
within 200-feet of a major street (i.e. arterial, collector or neighborhood collector).
The number of vacation home rental units cannot exceed one per tax lot. The
property owner is not required to live on site. The code would allow for an
additional residential unit (i.e. accessory residential unit) in conjunction with the
vacation home, but only to house the property owner/business owner or tenant
manager. If the property/business owner/manager does not reside on the
property, an additional residential unit (i.e. accessory residential unit) could still
be permitted in combination with the vacation rental unit, or not. A conditional
use permit would be required.
01.22.13 Commission Study Session
Staff Exhibit 1 - Page 2
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CITY OF
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Neighborhood Impacts - Addressed through conditional use permit. A relatively small number of
frequently in use short term rentals could be disruptive to the existing neighborhood character.
Needed Housing - Could reduce the amount of available rental and/or ownership housing
Choice - Increases the number of properties eligible to operate vacation rentals
Management - Resident management not required
Additional Permits & Licenses - Business license, TOT tax, commercial utility rates, county health
department, etc.
3. Additional recommended requirements
A. Definitions
• Add definition - Primary Residence
The property that the taxpayer uses a majority of the time during the year
ordinarily will be considered the taxpayer's principal residence. In addition to the
taxpayer's use of the property, relevant factors in determining a taxpayer's
principal residence, include, but are not limited to
(i) The taxpayer's place of employment,
(ii) The principal place of abode of the taxpayer's family members;
(iii) The address listed on the taxpayer's federal and state tax returns, driver's
license, automobile registration, and voter registration card;
(iv) The taxpayer's mailing address for bills and correspondence;
(y) The location of the taxpayer's banks; and
(vi) The location of religious organizations and recreational clubs with which the
taxpayer is affiliated.
(Note: Take from IRS definition for primary residence)
B. Additional CUP criteria for Vacation Home Rentals:
• Added requirement: Business License and Transient Occupancy Tax
registration required prior to operation of the Traveler's Accommodation.
• Added Requirement: Maximum Occupancy
Two (2) persons per bedroom with a maximum of 10 persons
• Added Requirement: Off-street parking
Two off-street parking spaces (cannot be reduced through the use of on-
street credits)
• Added Requirement: Maximum length of operation
01.22.13 Commission Study Session
Staff Exhibit 1 - Page 3
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CITY OF
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Vacation Home may be leased for a maximum of # consecutive days with
a minimum 3-day vacancy between rental bookings
• Added Requirement: Concentration
Vacation home rental properties must be separated from other vacation home
properties by a minimum distance of feet. (Note: This could lead to
competition among single family property owners to get approval sooner in
order to not preclude their ability to operate a vacation home at a later date)
• Added requirement: Required care, upkeep, and appearance of property
No more objectionable noise, smoke, dust, litter or odor shall be emitted from
the Traveler's Accommodation than a typical neighborhood dwelling.
Dwellings used for traveler's accommodations shall be maintained at or
above the level of the surrounding dwellings in the neighborhood, including
landscaping, signage, and exterior maintenance.
Provisions for regular garbage removal from the premises shall be provided
and documentation of such provisions shall be included in the City of Ashland
files.
• Added requirement: Onsite manager or post 24-hour local contact (within 20
miles)
There shall be a designated local management person immediately available
to handle complaints and problems. The name and contact information of the
designee shall be provided to the City of Ashland Community Development
Department, the City of Ashland Police Department and to all properties
within 200-feet of the Traveler's Accommodation.
• Added requirement: Expiration, transfer of ownership, etc.
If the Traveler's Accommodation activities cease for a period of six months as
determined by transient occupancy tax receipts, the Traveler's
Accommodation becomes void with no operation without approval of a
conditional use permit.
That documentation of the transfer of ownership and evidence of knowledge
of regulations shall be provided to the City of Ashland Community
Development.
• Added requirement: Prohibit advertisement of invalid establishments
01.22.13 Commission Study Session
Staff Exhibit 1 - Page 4
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CITY OF
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Advertising a Traveler's Accommodation or Vacation Home rental without a
valid Conditional Use Permit approval, current business license, and
Transient Occupancy Tax registration shall be subject to citation into
municipal court.
01.22.13 Commission Study Session
Staff Exhibit 1 - Page 5
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CITY OF
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Discussion Questions
1. Should changes to the Land Use Ordinance be considered that provide more
opportunity for property owners to operate vacation home rentals? If yes...
2. Currently, vacation home rentals are permitted as a conditional use in multi-
family zoning districts (R-2 and R-3) on properties 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?
b. Should a property owner/business owner/manager be required to live on
site in the case of a property where only one, individual vacation home
rental is in operation?
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? If yes,
a. Should the area be limited to those properties within a specified distance
from an arterial or collector street?
b. Should a property owner/business owner/manager be required to live on
site in the case of a property where only one, individual vacation home
rental is in operation?
c. In addition to operating an individual vacation home rental on a property
within a single family zoning district (R-1), should the property be eligible
for an additional accessory residential unit?
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?
01.22.13 Commission Study Session
Staff Exhibit 2 - Page 1
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VACATION HOME ORDINANCE
CITY COUNCIL STUDY SESSION
BACKGROUND BRIEF
What Is The Size of the Vacation Home Rental Market?
National research (Phocus Wright) shows that today there are four lodging choices
that are considered individual visitors markets-
• Staying with friends and relatives
• Motels/Hotels/Resorts
• Bed & Breakfast Inns
• Extended-Stay - Vacation Home Rentals
Staying with friends and relatives and motels/hotels/resorts remain the two largest.
But the next two are equal in size: B&B's and vacation home rentals both control
11 % of the national market. The fastest growing demand is for extended-stay style
lodging, such as suites, cottages, cabins and vacation homes.
According to a 2010 HomeAway study by Radius Global Market Research, the
vacation rental industry generated more than $85 billion in 2010 in the U.S. and
Europe.HomeAway's LeisureLink Demand IndexTM shows that overall vacation
home lodging demand grew more than 200% between 2008 and 2010. This
demand is reflected in the explosive growth of vacation home rental websites:
• HomeAway, Inc. - Is the worldwide leader in vacation home rentals with
735,000 paid listings. HomeAway owns the three major vacation home
websites in the U.S.:
HomeAway.com
VRBO.com
Vacation Rentals.com
The pioneer site was Vacation Rentals by Owner (VRBO.com) founded 15
years ago. It was acquired by HomeAway in November
2006.VacationRentals.com became part of HomeAway in May 2007.
In addition, HomeAway also operatesBedandBreakfast.com, the most
comprehensive global site for finding bed-and-breakfast properties. Google
Ventures purchased HomeAway shares from existing investors in November
2010 to provide major search support for all the sites.
2
• FlipKey - Majority-owned by TripAdvisor* - the largest travel site in the world -
is promoted on TripAdvisor.com and other TripAdvisor media sites and is the
other major online player with 160,000 vacation homes located in over 7,000
cities throughout the world.
Of course, this review doesn't even touch on the explosive growth of Craig's List,
which is now the prime source of classified advertising in America.
These vacation home websites have almost 60 million visits per month. With all
due respect, Ashland simply can't control this exploding lodging segment by
enforcing a 30-year old hotel/motel ordinance on a few select homeowners.
How Do Vacation Home Rentals Differ From
The Hotel/Motel And B&B Market?
While B&Bs and Hotels/Motels occasionally compete with Vacation Home Rentals,
homes attract a very different clientele based on psychographic research.
• In America, B&B clients desire a luxurious, historic, and personalized
experience with the owners in a neighborhood setting.
• Hotel/Motel clients desire more amenities (spas, pools, workout rooms,
restaurants, bars), convenience to major attractions, and they often look for
package deals.
• Vacation rental home clients desire the inherent value of renting a home, with
extra space, privacy, and home-style amenities (kitchen) with are ideal for
longer stays. Homes particularly appeal to extended families, small groups (two
couples), visitors traveling with pets, and foreign travelers that can stay a longer
period of time.
The LeisureLink Demand IndexTM found that travelers are using vacation rentals
for everything from weekend getaways (38 percent) to multi-week vacations (21
percent). In addition to flexible lengths of stays, travelers agree that the use of
vacation rentals allows them to enjoy a range of value-related benefits. In fact,
nearly 74 percent said they are able to travel with more friends and family. Fifty
percent said vacation rentals allow them to take longer vacations; 49 percent said
they can take more upscale vacations; and 35 percent said vacation rentals allow
them to travel more frequently.
What Is The Estimated Size Of This Market In Ashland?
This is hard to determine since Ashland's current enforcement policy has driven
the majority of vacation homeowners underground. Based on informal discussions
with numerous property owners and reviewing online resources, it is estimated that
3
there are 150 properties that are being marketed as vacation rentals.Of course, not
all of these are illegal. HomeAway research reveals that the national average for
vacation home rentals is20 weeks (140 days), so this represents a potential of
21,000 room nights that could be taxed.
The City of Ashland is in a position to estimate potential Transient Occupancy Tax
(TOT) from these homes. But the potential to significantly increase TOT collection
by creating a Vacation Home Rental ordinanceis significant.
What Are The Key Reasons For Changing This Ordinance?
1. It increases the supply of taxable lodging. Ashland needs more lodging
capacity and more TOT revenue, especially with the closing of a large portion
of the Windmill Inn of Ashland (Ashland Hills).
The city, given its "no growth" policy and limited land for development, cannot
easily increase lodging capacity by building more hotels and resorts. An
updated ordinance to regulate vacation home rentals in all zones, including R1,
would not only increase lodging capacity, it would support the city's "in fill"
philosophy and allow Ashland to better serve a distinct segment of the lodging
industry.
2. Vacation home rentals fulfill a known visitor need. In reviewing past guest
records with a variety of vacation home owners, the typical Ashland vacation
home renters are extended families, two couples, or someone looking to
relocate. They want to "test drive" living in an Ashland neighborhood, and they
can't do this with a B&B or motel/hotel experience. Home rentals especially
appeal to foreign visitors that may be here for longer periods. Also, more and
more visitors want to travel with their pets, and this eliminates many current
Ashland lodging choices.
3. Vacation home rentals strengthen Ashland's economy. Because vacation
home visitors typically stay longer, a week or more, there are more
opportunities for tourism dollars to reach deeper into the community.
By staying longer, these visitors support more local businesses: wineries,
culinary attractions, shopping, local artists, golf, etc. The longer someone stays
the more likely they are to shop in local stores, buy groceries and gas,
purchase fresh produce at the farmer's market, go to the movies, ski Mt.
Ashland, and support the more than 80 restaurants and numerous galleries in
Ashland.
4
4. Vacation home rentals protect neighborhoods and provide supplemental
income for homeowners. Many aging or retired property owners, who had
planned to sell their homes as part of their retirement income plan, cannot
afford to do so at current market values, even though they may no longer live
full-time in Ashland because of family commitments, health issues or a desire to
travel.
Many homeowners also rely on this supplemental income to pay their property
taxes and mortgages in the face of layoffs or other economic issues. Many are
at risk of losing their homes if they are denied this income source. If these
owners are forced into foreclosures and loan defaults, how will this help the
City, Jackson County, or our Ashland economy?
One of the key factors in studying this issue is that the vast majority of Ashland
vacation home rentals are not owned by corporations or companies. They are
owned by local residents that live in them, so they are focused on protecting
their investment and that means protecting their neighborhoods.
In reviewing other cities that have had successful vacation home rental policies
in R1 zones, there is no evidence that vacation home rentals will negatively
impact the residential feel of a neighborhood.
What Is The Challenge With Enforcing Current Regulations?
The city's current "crack down" on vacation home rentals, driven by a complaint
by the local B&B industry, places the city in a questionable legal environment
called "rent-seeking."
In economics, rent-seeking is an attempt to obtain economic control by
manipulating the social or political environment in which economic activities
occur. The simplest definition of rent-seeking is to gain wealth by increasing
one's share of existing wealth, i.e. market share, instead of trying to create new
wealth. The City of Ashland, by favoring one lodging segment over another
could be accused of doing this.
Of course, this doesn't touch on the legal issue of selective enforcement, where
the City has not applied their enforcement efforts equally. Easily identified
vacation rentals have been targeted, while the vast majority that are flying
under the radar have not. If this ordinance is to be enforced, it must be done so
across the board and in a manner that is fair to all vacation homeowners.
As outlined, given the explosive growth of this segment over the past decade,
the City has placed their hard-working and dedicated planning staff in a position
where they have to spend time scouring websites, instead of simply updating
and revising a vacation home ordinance that would make vacation home
rentals a positive economic and community asset for everyone involved.
5
How Difficult Will It Be To Establish A Vacation Home Ordinance?
An ordinance specifically for vacation homes is nothing new. Numerous Oregon
cities have embraced the vacation home rental segment for years and made
money by developing sensible regulations that can address neighborhood issues
while collecting TOT from everyone.
It should be relatively easy to obtain copies of existing regulation that have proven
very successful. I have already provided a copy of a 20 year old Gold Beach
ordinance that is working well for their community.
Will Ashland B&Bs SupportThis Change?
In my informal discussions with B&B owners, if an ordinance change creates a
level playing field and stops giving illegal rentals a competitive advantage; I believe
they would be supportive.
As a former B&B owner, I believe Ashland's B&B industry deserves a level playing
field. Although there is no hard research that vacation home rentals offer inferior
accommodations or directly compete with B&B's for longer stays, Ashland visitors
certainly need to be assured that home vacation rentals are regulated and the city
needs to collect TOT from all visitor accommodations.
Will Ashland Residents Support This Change?
In talking to numerous residents, home owners, B&B operators, and neighbors, I
believe this change will be positively received by the community. But only an
independent, scientific study can answer that question. I would urge the council to
consider conducting a quantitative study that would provide the City with input from
the entire community. Below are a few of the comments I have received by
Ashland homeowners:
Longterm property owner, resident (30 years)and business owner
"1 chose to list my own home with VRBO because 1 saw it as the most
beneficial way to make ends meet. 1 have experienced a dramatic increase in
expenses over the last few years and no additional revenue.
1 have lived in the same neighborhood for over 30 years. 1 have seen many
changes in property owners and new construction. The neighborhood has only
improved and shows a real pride of ownership. It is a mix of single family owner
occupied properties and higher density rental properties.
1 understand the City's concerns relating to short term vacation stays in these
neighborhoods. Based on a previous experience renting out a property thru VRBO
1 knew my clientele would be a sophisticated and moneyed group.
6
My maximum occupancy was 4 adults, no more than the occupancy of a longer
term rental. The traffic, noise, and presence would be no more than a longer term
rental. My guests paid a significant security deposit and 1 had an on-site manager
in another rental on-site.
To date 1 havenever had a problemwith short term quests, but 1 have had to
respond to many noise, parking, damage and other issues with long term tenants.
My neighbors have all commented on how pleasant and effectively unchanged the
neighborhood has been since the visitor season began.
The City should begin to develop with home owners under no penalty, a
comprehensive review and plan of action to license shortterm vacation stays.
Tourism is the life blood of this city. We must be forward thinking and create the
most vibrant tourism economy possible. The City and Municipalities would
generate new revenue with a revised ordinance. The trickle-down effect for the
overall economy would improve. The City needs to prioritize this issue. A plan for
guidelines, licensing etc. must be put into action for the 2093 Season.
Jeff and Melody Jones - Long term property owners
As a vacation rental owner, 1 feel privileged to be able to share our space with
people who choose to stay with us rather than a hotel. We have made close friends
with guests who return year after year.
All of our guests are here to see Shakespeare plays, attend weddings, and mostly,
to live in a neighborhood to get the feel of Ashland to retire or relocate in. These
people are intelligent, kind, and very respectful of our property and our
neighborhood. Everyone recycles and we only ever have ONE can of garbage per
week.
Because of our guests, 1 am SURE our yard and environment is much cleaner and
presentable, like cleaning one's house before having dinner guests. Our guests
don't pick up children, drive to and from work every day, go to appointments or do
daily errands, they seldom get in their cars.
There is definitely a shortage of housing for Ashland visitors as people often
comment that EVERY PLACE is totally booked and they are so grateful there is an
alternative place to stay.
1 hope the council understands the importance of vacation rentals. 1 see this as
being nothing but a win win for the City of Ashland, our visitors and us vacation
rental owners who need this extra income to pay for the high cost of living in this
lovely place.
7
Visitor's comments:
"We were fortunate to have stayed at this lovely cottage in June 2092 and we
would like to thank Melody, Jeff and Julian for their hospitality. Their place has a
beautiful, large garden with 3 seating areas, a BBQ area, a vegetable garden and a
hammock - all of which were offered for our use. We were in town for a family
wedding, and were encouraged to invite people over to enjoy their amenities. Over
the course of the month we were there, we were able to invite our relatives and
friends over - and ended up having some wonderful evenings with them. The
cottage is within walking distance to Lithia Park, the Shakespearian Theatre, the
Cinema and several restaurants and shops. You won't be able to find a better place
to stay in Ashland. We are looking forward to going back next year".
Char and Gerry -Vancouver Island, Canada
Diane Paulson - Long-time property owner
In reviewing my past tenants, we have had three people who lived in Annie's
Cottage and came back from where they lived and bought homes in Ashland.
We housed the temporary/interim Fire Chief, people attending the United Bicycle
Institute (UBI), overseas visitors (Korea) and people as far away as New York City.
All of these guests have infused more money into the Ashland economy than just
their rent. And a good number of grandparents who want a large enough space to
have their grandkids stay over, cook for them, babysit for their kids, absolutely
would not work with a B&B or a motel room.
We've also had other VRBO ownersfrom other cities stayed because they wanted
the same experience that they were offering, more privacy, less noise, more
amenities like cooking at home, bringing their pets, more feelings like you are a
local and NOT a Tourist. They love that they can meld into the local culture more.
Some of the people wanted to come for a week, some for a few months. We had to
tell the weekly ones, that the we had to charge them a monthly rate and they came
anyway... staying as long as they could to get their money's worth.
Our neighbors do not have any complaints that 1 am aware of, they see our guests
as a vehicle for friendship and adventure, thru getting to know them and what their
stories were.
AUTHOR OF THIS BRIEF - Mark Dennettis a former B&B owner, a former operator of vacation
rentals in Sun River, Jacksonville and the Oregon coast, and a long-time tourism consultant who
has worked for various local hotels, resorts and B&B's. In developing this background brief he has
had extensive conversation with local Ashland property owners and has reviewed a variety of
secondary research. Dennett is owner of the Ashland based Dennett Consulting Group and DCG
Research.
Ashland's Bed & Breakfast Network (ABBN) Position Paper on Unlicensed Vacation Rentals
To: Ashland City Council Members
From: Ashland's Bed & Breakfast Network
Date: August 2, 2012
In anticipation of the Ashland City Council's upcoming Study Session to discuss unlicensed
lodging operations throughout the city, the Ashland's Bed & Breakfast Network (ABBN) Board,
the only organized lodging association in Ashland, met on July 30, 2012 and respectfully
presents its position for your consideration.
Our View: As long-established business people and residents of Ashland, the most important
considerations for the city in responding to the request for revisions of the Travelers'
Accommodation Ordnance are the protection of city neighborhoods and permanent residents,
and to provide visitors to Ashland a first rate experience with safe, clean and environmentally-
sound lodging. Appropriate living, sleeping and adequate parking must be provided and the
city's taxing laws should be evenly enforced. Only then should consideration be given to the
sometimes competing interests of various segments of the lodging industry.
As for legalizing Vacation Home Rentals in any R-1 zone, it is critically important that the
integrity of the R-1 residential neighborhoods is maintained and the city solicits residents'
input.
You should be aware that the city's recent enforcement of the city's 30-day rental ordinance on
unlicensed lodging operations was not initiated at the request of ABBN or any of its 22
members. Moreover, ABBN, which represents the most highly-regulated segment of the
lodging industry, does not necessarily oppose updating/amending the city's Travelers'
Accommodations Ordinance (18.24.030.K). However, we hope that the Council would not
apply a different set of standards and regulations for Vacation Rentals versus other lodging
establishments such as B&Bs. Nonetheless, if a lower set of standards and regulations are
proposed, then in the interest of fairness, we expect the same is applied equally to all lodging
establishments in order to provide an equal playing field.
To that end, should the city decide to update/amend the ordinance, we would like to make sure
that at a minimum the following requirements are met by all applicants:
a. Obtain Conditional Use Permit;
b. Obtain Business License;
c. Comply with Jackson County lodging requirements;
d. Comply with the City of Ashland and State of Oregon Transient Occupancy Tax;
e. Provide adequate and required off-street parking;
f. Conversion to city's commercial utility rate for all services;
g. Obtain Commercial liability insurance for guest safety;
h. Require annual fire-safety inspection;
Page 2
Ashland City Council August 2, 2012
ABBN Position Paper on Unlicensed Vacation Rental
It is worth noting that as more rental units are taken off the long-term rental market to rent as
short-term Vacation Rentals, the Ashland rental housing market will be negatively impacted
both in term of supply and price.
As the city budget reflects, the city's Transient Occupancy Tax has decreased in recent years.
This not only indicates unlicensed Vacation Rentals are taking business from licensed lodging
establishments, it indicates that sufficient room vacancies exist within the current licensed
lodging establishments. Members of ABBN will be present at the Council's Study Session and
will be happy to answer any questions you might have.
Sincerely;
ABBN Board of Directors
• A Midsummer's Dream Bed & Breakfast
• A-Dome Studio
• Abigail's Bed & Breakfast Inn
• Anne Hathaway's B&B and Cottages
• Ashland Black Swan Inn
• Ashland Creek Inn
• Ashland Mountain House B&B
• Ashland Royal Carter
• Ashland Tudor House
• Bayberry Inn
• Blue Moon Bed & Breakfast
• Chanticleer Inn B&B
• Coolidge House Bed & Breakfast
• Country Willows Bed & Breakfast
• Iris Inn
• McCall House
• Oak Hill Bed & Breakfast
• Oak Street Station
• Romeo Inn
• Shrew's House Bed & Breakfast
• TouVelle House Bed & Breakfast
• Winchester Inn Restaurant & Wine Bar
CC: Dave Kanner, City Administrator
Bill Molnar, Community Development Director
,Amy Gunter
From: M.E."Jack" Swisher [swisher.jack@gmail.com]
Sent: Wednesday, December 05, 2012 3:57 PM
To: Emily Smith
Subject: VRBO
Hi Amy,
This probably should not be for the record. If you want an abbreviated version to use in public hearings or
public deliberations, let me know.
As an Ashland lodging owner for the last couple of decades, I have been pleased with the checks and controls
the Ashland Department of Planning and the City Council have placed on growth within the city. For the most
part, your offices have taken a proactive role in planning for growth. Growth has been fairly orderly, unlike in
some other areas of the country where it has been explosive and seems unplanned. Ashland businesses are sited
in commercial districts for the most part, and residences are located in residential neighborhoods, mostly. There
is some overlap and some conflicts, to be sure. Zoning has played a key role in guiding certain kinds of
activities into some areas while excluding it from other areas of the city. It is not a perfect system, the zoning
overlays, but it seems to be the best we have at the moment, and it is approved by the state zoning bodies that
mandated our zoning plans in the first place.
The Internet has allowed new advertising opportunities for businesses. In many ways it has improved our
businesses' ability to reach out to new customers and retain customers. But in Ashland the VRBO.com and
Ashlandvacations.com websites have also created problems for lodging owners like me. Now, anybody with a
digital camera and some flowery text can place an ad on these websites. Suddenly, they're a lodging business
that rents out rooms or houses by the night. It doesn't seem to matter to these newcomers that they have no
business license, commercial liability insurance policy, conditional use permits, or bonds. Inspections by
Jackson County Health Department are not required. No city official gets to check their off-street parking plan.
The city fire department never gets to review their site for fire engine access. And Jackson County Health
Department never gets to inspect their premises for public health hazards or code violations.
I urge the Ashland planning zoning officials to work with your colleagues in Salem and Medford to put the
clamps on these fly-by-night businesses in Ashland. Share concerns and information with Oregon Department
of Revenue. Contact Bret Thomas at Jackson County Health Department. Reach out to Oregon Department of
Land Conservation and Development in Medford and Salem to share strategy and goals for enforcing the zoning
laws in Ashland. Use all the tools and partners at your disposal to make businesses compliant, or shut them j
down.
It is hard being in business in Ashland if our city officials do not curb the non-compliant Internet lodging
businesses we compete with. Competition for customers is fierce. Having pirates in the mix who collect no
taxes, pay no license fees, suffer no inspections, and skirt around the conditional use permit process adds to our
difficulties. Powerful people in the community would wish you do nothing, some of them on the boards and
councils that run the city.
Thanks for all you do.
Mark E. "Jack" Swisher
Oak Street Cottages
1 i.
April Lucas
From: Melanie Mindlin [sassetta@mind.net]
Sent: Friday, August 24, 2012 8:49 AM
To: anita isser
Cc: April Lucas
Subject: Re: Vacation Rentals
Hi Anita,
Thanks for your thoughtful suggestions. I hope you will come and speak when we have this scheduled at the Planning
Commission. I have forwarded your letters to our staff so they can be part of the record in this matter.
Melanie
On Aug 24, 2012, at 7:29 AM, anita isser wrote:
> Melanie,
> Thanks for responding to our email. I think it's timely that the
> Planning Commission will soon take a new look at regulations for
> Vacation Rentals. Some of the conditional use requirements are out of date.
> Being responsible for the local taxes and a business license as
> well as being properly insured and inspected is appropriate.
> Providing off-street parking and requiring the business owner to
> live on site is correct.
> Why the residence must beat least 20 years old makes no sense. Why
> can't a newer house be a vacation rental?
> The requirement that the travelers accommodation be located within
> 200 feet of a collector or arterial street is equally ridiculous. When
> we inquired about a variance several years ago we were told that the
> distance requirement was for travelers to be able to catch the bus.
> REALLY? Short term visitors walk or drive; they don't take the bus.
> Furthermore, the bus isn't available much and it doesn't circulate on
> all the collector streets (East Main for example). We were further
> informed back then that there was no chance the Council would grant a
> variance, because if they gave us one they'd have to give one to
> everyone in town who wanted one and they didn't want to do that. So,
> apparently, the point of the 200 feet requirement was to control the number of vacation rentals.
> I've read that some R-1 neighborhood residents object to vacation
> rentals in their neighborhoods. The concern seems to be traffic and noise.
> Our experience is that if anything there's less noise and less traffic
> than with a longterm rental.
> Thanks for taking our views into account. We're eager for
> improvements in the travelers accommodation code.
> Sincerely,
> Steve and Anita isser
i
i
April Lucas
From: Melanie Mindlin [sassetta@mind.net]
Sent: Monday, August 20, 2012 1:01 PM
To: anita isser
Cc: April Lucas; John Stromberg
Subject: Re: Vacation Rentals
Dear Anita and Steve,
I understand that we may have an opportunity to discuss this issue at the Planning Commission in the near future. Thank you
for writing me about your personal situation. Of course, in order to get a variance you need to show unique or unusual
circumstances.
I am curious to know what you would consider reasonable rules or guidelines applied throughout the City, not just in your
specific situation.
Thanks,
Melanie Mindlin
Chair, Planning Commission
On Aug 20, 2012, at 12:50 PM, anita isser wrote:
> August 20, 2012
> Ashland Planning Commission
> Hi Melanie
> We have lived in our house on Garfield Street for 34 years. The
> upstairs has a separate entrance, kitchen, bath, and electrical meter.
> For many years we rented the apartment full time. But we no longer
> rent it year round, because we want the space for our visiting adult
> children and extended family and friends. A vacation rental is the
> most appropriate use for this apartment.
> We would like to create a legal vacation rental. We meet most of the
> current required criteria-we live on the site, there is adequate
> off-street parking, and we live in a multi-family residential zone. There
> is one exception. We are not 200 feet from an arterial street. We are
> approximately 500 feet from East Main. This means that we would have
> to apply for a variance.
> We were told these are the steps we must take: fill out a pre-app
> form ($125), get a Conditional Use Permit ($963), and apply for a
> variance and have a hearing ($1928). And then there is no guarantee
> that we would get the variance and could expect no financial refund if
> the variance was denied. We, and everyone in town we have spoken to, thinks this is absurd.
> We could be running a lovely vacation rental that would benefit the
> city, tourists, and ourselves. The city would receive lodging tax
> revenue, tourists would have another good option for their visit, and
> we would be supplementing our income as we approach our retirement
> with very limited funds. Seems like it could be a win-win situation.
ii
> We believe it's time for the planning commission to revisit this issue
> and create some reasonable rules and guidelines.
> Sincerely,
> Anita and Steve Isser
> 84 Garfield Street
> Ashland
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