include conditional use triggers. Mr. Zenner noted that this could be an outcome
and questioned if applying conditions similar to those in Tier 1 within Tier 2 was
really needed given dwellings in these zones are often considered a “holding” use
of the property. He further noted that to do so would significant alter the intent of
Tier 2 (presently Tier 3).
After lengthy discussion about the proposed Tier structure and discussion of
potentially reintroducing present Tier 1 with modifications on the maximum
number of allowable nights of usage, the Commissioners concluded that leaving
the M-OF, M-N, M-C, and M-DT districts in the proposed Tier structure was
acceptable. Commissioners acknowledged the potential for some operators to seek
a Tier 2 licensure when their dwelling was in M-N and M-C zoning to avoid
triggering a CUP could occur, but also noted that a 365-day STR in the M-OF district
within that Tier 2 already requires a CUP. Given this provision coupled with the
added CUP criteria within proposed Tier 1 there was a sense that possible
incompatibilities could be addressed. It was further acknowledged that the M-OF
district had the greatest likelihood of having dwelling, any kind, seeking licensure
as an STR versus the M-N, M-C, or M-DT districts.
Having resolved if the office and commercial districts needed to remain in both
proposed Tiers, Mr. Zenner noted that the Commission needed to complete its
discussion the proposed CUP “triggers”. There were several Commissioner
questions with respect to items “a” and “b”.
Mr. Zenner explained the reason for choosing “approved and/or fully licensed”
short-term rental dwellings within 300-feet and not simply the presence of an STR
within 300-feet was made in light of the fact that an unlicensed STR may cease to
operate once found and notified as being non-compliant. The language proposed
does not penalize an operator seeking to become legal by those STRs operating
illegally. The unlicensed STR operator would be the one negatively impacted when
they came to obtain a license given their complacency. Furthermore, Mr. Zenner
noted that based on information being provided by Neighborhood Services staff
who have contact regularly with rental/STR operators, many operators have stated
that they intend on ceasing their STRs operations following the June 1 licensure
deadline and would be converting their dwellings to “mid-term” rentals.
With respect to what staff meant by “STR operational complaints” within item “b”,
Mr. Zenner responded that this was intended to include noise, trash, occupancy or
other complaints typically filed with the City with respect to dwelling units. These
types of complaints are what staff is currently reporting out within its CUP staff
reports, but given the changes in the proposed Tier structure evaluating these
factors to determine if a future licensure should or should not be “administrative”
is why the “trigger” was added. It was noted that the term being used was
confusing. It was recommended that it be changed to simply “code violations”. Mr.
Zenner indicated the change was being made as part of the Commission present
review.
Finally, the Commissioners considered the final CUP “trigger” which dealt with the
issue of proximity to a school. There was significant discussion this matter and it
was expressed that retaining it may result in it not being considered acceptable
once the amendments were forwarded to City Council given its potential for being
seen as not necessarily serving a legitimate governmental purpose. There was
discussion on how having such a trigger would potentially eliminate significant
portions of the housing stock from being capable of obtaining an STR license. There
was also discussion about what types of evaluation would the Commission expect
to be provided by staff with respect to the matter.
Commissioners noted that what was being considered was just a “trigger” for a CUP
not a final determinative factor that would result in approval or denial of a CUP
request. Commissioners expressed concerns that if the provision were left out
there may be unintended impacts upon why the school was located where it was.