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HomeMy WebLinkAbout05192026 Planning & Zoning Work Session NotesWORK SESSION NOTES PLANNING & ZONING Called by: Clare Sullivan Time: 6:00 P.M. Date: 5/19/2026 Purpose: Short -Term Rental Regulations Present: Daniel Meuninck Courtney Bringhurst Jamie Crocker Commission Members Present: Rhonda Hubbard Vanessa Verhey Nathaniel Charbonneau Brenan Hornseth Clare Sullivan Meeting Called to order at 6:00 P.M. Purpose • Prepare Planning & Zoning for a joint work session with City Council on: o Short-term rental (STR) regulations o Possible caps o Whole -house STRs o STRs in commercial zoning districts • Goal: clarify issues, policy options, and trade-offs; collect commission and public perspectives. Existing Code & Background • 2022 P&Z recommendations (not adopted by Council): o Require owner -occupancy for STRs in single-family dwellings in commercial zones. o Require 4-year wait before converting commercial multifamily to STRs. • 2023 ordinance (current code): o Defined STR and owner -occupied. o Added STR application fees and insurance requirement. o Required owner -occupied STRs in all residential zones (UR, R3 no longer allow whole - house STRs). o Reduced allowed STR bedrooms in residential zones (50% of bedrooms, max 3). o Clarified that whole -house STRs are allowed in commercial zones. Current STR Snapshot • 98 properties, 168 STR units. • 41 STRs in residential zones; 24 are nonconforming (grandfathered whole -house STRs). • Enforcement: o City uses Granicus to identify unpermitted STRs. o Community Development follows up; compliance is generally good. Key Issues Discussed • Caps on STRs • Pros: o Clear limit on total STRs. o Simpler than many small rules. • Cons/risks: o Can inflate value of existing STRs/permits. WORK SESSION NOTES PLANNING & ZONING o Might block new mixed projects that rely on some STR units for feasibility. • Implementation ideas: o Permit tied to owner (returns to pool on sale). o Owner -occupied and some mixed -use projects could be exempt or treated differently. o Use a harbor -style waitlist; allow STR count to shrink over time as permits lapse. • Commercial Zones vs Residential Character o Many commercially zoned areas function as neighborhoods (notably auto commercial). o Council concern: STRs in these commercial -but -residential areas. o Some support letting STRs continue freely in Central Business District, where units are often more hotel -like and support tourism. • Mixed -Use / Percentage Models o Idea: allow or favor STRs where owners also provide long-term units in the same building/property (e.g., 50% or more long-term). o Goal: tie STR permission to net long-term housing gain, especially in expensive -to -build contexts. • Incentives vs Restrictions o Strong sentiment that restrictions alone (2022+ changes) have not reduced STR numbers or "solved" housing. • Ideas: o Tax or fee incentives for new long-term rentals (property, utility, sales/bed tax approaches). o Expanded use of tools like developer reimbursement. o Pre -approved plans, reduced permit fees for multifamily/long-term housing. • Role of STRs in Housing Crisis • Mixed views: o Some see STRs and out-of-town buyers as key drivers. o Some realtors argue STRs are not the main cause, pointing instead to land constraints, costs, and employer housing needs. Direction for Joint Work Session • Possible items to bring to Council: • Options, not a single proposal: o Revisit prior P&Z recommendations. o Discuss cap structures (with exemptions for owner -occupied and mixed -use projects). • Consider different rules by zone: o More flexibility in Central Business District. o Tighter focus on single-family dwellings in AC and other residential -feeling commercial areas. • Highlight the need for incentive -based tools for long-term housing (tax, fees, DRP-type programs). • Emphasize that STRs are one part of a broader housing strategy (zoning, incentives, infill, employer housing). Follow -Up & Data Needs • Confirm July joint work session date (July 13 or 27) via email and City Manager coordination. • Zoning analysis: count single-family dwellings in key commercial zones (Central Business, Auto Commercial, Office Residential). WORK SESSION NOTES PLANNING & ZONING • Engage realtors and other stakeholders (e.g., employers, developers) to participate in the joint session. Meeting adjourned at 7:04 P.M.