necessary to increase processing time efficiencies with STR requests given the
volume of applications that have not been received. Mr. Zenner noted that the last
review of existing STRs within city stood at approximately 475-500 of which only
approximately 50 have sought licensure.
There was significant discussion with respect to each proposed revision. Concerns
were expressed that eliminating Tier 1 may be premature given the regulation
were not in “full” enforcement mode and that the tier was potentially not well
understood. There was discussion that this tier was intended to be the least
restrictive and allow the “broadest” opportunity for residents (owner/long-term
occupant) to participate in the STR market. Mr. Zenner explained that while this
was what was desired by the Commission, it was not in fact what was created with
the adoption of the regulations for zoning or other areas of the City Code dealing
with STRs. All application, inspection, and licensing requirements applied (with the
exception of parking) to each Tier equally. He noted that no one has chosen Tier 1
based on the fact that a Tier 2 status with 120-nights requires the same level of
effort and regulatory steps.
Commissioner expressed concern that this was not what was adopted. After
lengthy discussion on the merits of the Tier, Commissioners ultimately concluded
that regardless if the STR standards were in “full” compliance mode or not that
retaining the Tier really made limited sense given the other inspection and
licensure processes that were required outside of the zoning provisions.
Commissioners reluctantly indicated support of removing this Tier from the STR
regulations and the renumbering of the remaining Tiers.
Mr. Zenner then proceeded to explain the remaining changes proposed. He noted
the first significant change would be the consolidation of the number of nights
available for STR use in the new Tier 1 (former Tier 2). This change was based on the
fact that most applications submitted were seeking 210-nights even if they were
submitted by the “long-term resident”. Mr. Zenner reiterated that the inspection
and licensure standards were the same for a 120-night or 210-night STR and that
having two levels of STR usage based on who was operating the STR was not seen as
efficient. He further noted that having the structure this way was confusing to
applicants, requires additional staff time to respond to application questions, and
creates additional demands for processing CUP applications for the Commission
and Council. Mr. Zenner further stated, that there was nothing prohibiting an
operator who wanted to “self-limit” there dwelling for STR purposes to do so and
asked if that was really something that the City needed to be significantly
concerned about given the structure of the remaining STR regulations were not
proposed for changes.
Commissioners discussed this revision and noted that by making this change the
idea of differentiating between an “accessory” and “primary” use of a dwelling as
an STR would be altered. There was Commission discussion on what effects this
would have given their current pattern of decision making and if the Commission
wanted to continue to 3+ hour meetings to address the likely future licensure
needs given only about 10% of the currently identified STRs had come forward.
There was general Commission agreement that simplifying this aspect of the
regulations was potentially valuable; however, several Commissioners were
reluctant given the ordinance was not in “full” enforcement yet.
With respect to these reservations, some Commissioners noted that most
applications reviewed were not operating presently for more than 120-nights and
that applicants were simply seeking the greatest flexibility to operate and were
therefore seeking the 210-night CUP. There were comments offered that
suggested once the STR regulations became “fully” enforceable there could be an
increase in submittals seeking an “administrative 120-night” licensure just to avoid
the CUP process. Several Commissioners acknowledged these outcomes were a