process was becoming complicated.
Commissioners brought up executive rentals which are a private arrangement not
advertised through a third party such as AirBnB. These private agreements are
discussed in the by-laws of some Home Owner Association’s (HOA) covenants and
are often brought forward to HOAs for approval.
Commissioners reiterated to the group that focus should be on regulation that can
be reasonably and practically enforced. In discussing potential tiers, it was
proposed that thresholds could be set for number of days rented per year as it may
be required that operators of STRs report on their operations annually to the City.
Commissioner Geuea-Jones moved to discuss three STR tiers which was seconded
by Commissioner Kimball and passed unanimously. Tier 3 was roughly outlined as a
principal, commercial use driven by investors. The Permitted Use Table was
displayed up for reference and comparisons were made to the ‘Bed and Breakfast’
use and its treatment by the UDC. The use was noted for its definition and
use-specific standard that requires that the establishment be owner-occupied and
managed. This use is conditional in the R-2, R-MF, and M-OF districts but permitted
by-right in M-N, M-C and M-DT. Some commissioners felt that tier 3 STRs should be
allowed in the mixed-use districts but not residential districts. For discussion
purposes, Commissioners Carroll made a motion to make Tier 3 STRs conditional in
M-OF and permitted in M-N, M-C, and M-DT. Motion was seconded by
Commissioner Rushing and passed unanimously.
Moving back to the in-between use, tier 2 was outlined as a STR operated out of a
primary residence not affiliated with investors. The Commission generally felt that
this tier would need the most consideration by the group and discussed in which
zones it should be a conditional use. There was disagreement over what would
define a primary residence. Staff relayed information for definitions of
owner-occupied STRs in Ann Arbor, MI as had been discussed on prior occasions.
Relating to bad actors and regulation that is enforceable, some commissioners
noted that the STR operations would become complaint driven. Commissioners
inquired as to whether there is a gap between tier 2 and 3 in terms of definitions or
With time left for one more motion, Commissioner Geuea-Jones moved to require
all tiers of STRs to submit quarterly audits giving some City department the ability
to review the audits for compliance. Motion was seconded by Kimball and passed
unanimously. Mr. Zenner thanked the Commission for their time highlighting that
progress has been made on the ordinance during recent work sessions. He
indicated that the next work session would take a break from STRs and return to
familiar topics of UDC text changes or public outreach regarding updating the