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HomeMy WebLinkAboutStudy Session Agenda Packet 10-21-19STUDY SESSION AGENDA CITY COUNCIL CITY OF WHEAT RIDGE, COLORADO 7500 W. 29th Ave. Wheat Ridge CO October 21, 2019 6:30 p.m. Individuals with disabilities are encouraged to participate in all public meetings sponsored by the City of Wheat Ridge. Call Sara Spaulding, Public Information Officer 303-235-2877 at least one week in advance of a meeting if you are interested in participating and need inclusion assistance. Citizen Comment on Agenda Items 1.Preferred Concept Design for “The Green” on 38th Avenue 2.Short Term Rentals – City Council Survey Update and Discussion 3.Staff Report(s) 4.Elected Officials’ Report(s) ADJOURNMENT Memorandum TO: Mayor and City Council FROM: Patrick Goff, City Manager Ken Johnstone, Community Development Director DATE: October 15, 2019 (for October 21, 2019 study session) SUBJECT: Preferred Concept Design for “The Green” on 38th Avenue ISSUE: One of the top five priorities in City Council’s 2018/2019 Strategic Plan is to finalize a design for the 38th Avenue Streetscape. While the proposal for The Green does not directly implement that priority, it is a logical first step in extending streetscape improvements from the West 38 mixed-use project, which is nearing completion directly to the west. The 2019 Neighborhood Revitalization Strategy Update also recommends that the City continue to prioritize additional streetscape investments along 38th Avenue. A consensus was reached by City Council in 2018 to engage a designer to develop conceptual designs for The Green. Architerra Group was hired by the City in August 2018 through the City’s established procurement process. Architerra Group, representatives from the Jefferson County School District and City staff will present the preferred concept design for The Green to City Council at the October 21, 2019 study session. PRIOR ACTIONS: •At the April 2, 2018 study session, a consensus was reached by City Council to engage adesigner to develop conceptual designs for The Green. •City Council approved an appropriation of $900,000 in the 2019 Open Space Fund Budget, as a transfer from General Fund reserves, for redevelopment of The Green. •City Council reauthorized an appropriation of $900,000 in the 2020 Open Space FundBudget for redevelopment of The Green. BACKGROUND: The 2005 Neighborhood Revitalization Strategy (2005 NRS) focuses on the repositioning of Wheat Ridge as a vibrant community. In particular, the NRS urges the City to pursue policies that encourage redevelopment and to promote 38th Avenue as a destination main street and pedestrian- oriented place. Strategy 6 specifically calls to “accelerate and shape the development along 38th Avenue” because “Wheat Ridge is a community that lacks a defined center.” The NRS emphasizes the need to attract strong households, and ultimately the provision of an appealing, pedestrian-oriented destination such as 38th Avenue helps to create that household demand. In 2009, this vision of a main street on 38th was reinforced in the City’s comprehensive plan, Envision Wheat Ridge. The plan specifically describes the future of the 38th Avenue corridor from Item No. 1 Preferred Concept Design for The Green October 21, 2019 Page 2 Wadsworth to Pierce as “a transit and pedestrian friendly ‘main street’ that features an extension of streetscape and urban design improvements that have been completed between Sheridan Boulevard and Harlan Street.” Enhancing community character and design is one of six key values on which the comprehensive plan is based. This includes a call to enhance the image of the City’s commercial corridors and specifically “to coordinate, fund, develop, and maintain streetscape improvements.” The 38th Avenue Corridor Plan, adopted October 2011, refines the main street vision and outlines specific action steps for revitalization. The plan addresses a wide range of recommendations related to branding, signage, housing, private development, public improvements, art, zoning, and community events all of which contribute to a feeling of place. Specifically, the plan recommended the following actions items pertaining to the Jefferson County School District property: Guiding Principle Action Vitality Work with Jefferson County School District to consider utilizing the large surface parking lot that abuts 38th Avenue for non-school events such as farmer’s markets, family or youth bike rodeos, overflow parking or civic functions. Guiding Principle Action Vitality Work with Jefferson County School District to consider long term re-investment of their underutilized land along 38th Avenue (vacant land fronting 38th and parking lot) for mixed use development and community functions such as community gardens and corridor parking Guiding Principle Action Appeal Create public plazas or gathering places along the corridor at activity nodes for public gatherings Subsequent to the adoption of the 38th Avenue Corridor Plan, the City hired a design firm to design conceptual streetscape improvements to 38th Avenue. As part of Phase II of that scope of work, Entelechy, the consultant urban designer, also designed conceptual designs for modifications to the schools vacant property along 38th, generally referred to as “The Green”. Already used for many City events such as the Criterium and Brewfest, Friday Night Live, RidgeFest, and the Holiday Celebration, in partnership with the School District, the improvements would be intended to improve its functionality for these and other special events and for community passive uses. As noted earlier, a primary recommendation in the 2019 Neighborhood Revitalization Strategy (2019 NRS) Update is to reinvest in the City’s primary corridors including 38th Avenue. It suggest the City complete “funding, final design and construction” of 38th Avenue streetscape improvements. In August 2018, with Council’s direction from the April 2018 study session, staff engaged with Architerra Group, a local landscape design firm, to develop conceptual designs for The Green. Architerra developed multiple options and those were presented to focus groups of interested stakeholders, including various school district representatives, Stevens Elementary parents, Localworks and 38th Avenue businesses. Some of the designs maintained the current footprint of Preferred Concept Design for The Green October 21, 2019 Page 3 The Green, while others altered that orientation such that it would occupy the entire frontage along 38th Avenue and relocate the school’s parking and student drop-off area to be a buffer between 38th Avenue, The Green and the school. This preferred concept design orientation has several advantages: • Meets the School District’s security/safety goals by providing a parking lot and circulation area that is protected from the street, more convenient to the building entry and will be perceived as being safer by providing a buffer between the elementary school and its outdoor playground and the various activities that occur on The Green. • Provides a more efficiently designed parking lot, while maintaining the same number of spaces. • Gives The Green a stronger street presence and visibility, furthering the City’s goal of highlighting 38th Avenue as the City’s “main street.” • Provides a logical extension of streetscape improvements that are being installed as part of the private development immediately to the west – West 38. The City and the School District have an existing agreement that allows for shared use of The Green, which has been in place for the last several years. The School District continues to be very supportive of this redesign and continued shared use, which as noted above, meets important goals for both the City and District. City staff have inquired of the District whether they would be interested in deeding The Green to the City after completing these improvements, and the answer thus far has been ‘no.’ Because of that, staff acknowledges the importance of getting a solid long-term agreement that memorializes both parties intent for this to be a shared use facility between the City and School District. We have similar shared-use and maintenance agreements at several of our schools. The District also has a recent example of a long-term use agreement with the City of Arvada, which can serve as a template for a long-term agreement on this property. ATTACHMENTS: 1. Preferred Concept Design for The Green on 38th Avenue 2. IGA between City of Arvada and Jefferson County School District THE GREEN AT 38TH Conceptual Site Plan 10-17-19ATTACHMENT 1 ATTACHMENT 2 Memorandum TO: Mayor and City Council FROM: Kenneth Johnstone, Community Development Director THROUGH: Patrick Goff, City Manager DATE: October 21, 2019 SUBJECT: Short Term Rentals – City Council Survey Update and Discussion ISSUE: Short terms rentals (STRs) have been a discussion topic in the community for several years. Based on anecdotal evidence and monitoring of some of the umbrella providers (Airbnb, VRBO, etc.) they do exist in the City. Municipal Code is currently silent to the topic; however, interpreting various sections of existing codes, staff’s interpretation has been that they are generally not allowed and that is communicated to persons inquiring of their permissibility. Staff has been monitoring their prevalence in the City, as well as monitoring what regulatory approaches (if any) other cities have taken, both locally, statewide and nationally. Based on staff resources and the ambiguity in the Code, staff is not currently pursuing enforcement actions to prohibit them. PRIOR ACTIONS: City Council has identified the establishment of a policy on STRs as a top priority in your 2018/2019 Strategic Plan. City Council was briefed on the topic at a March 18, 2019 study session meeting. That briefing included the following: 1) an overview of what STRs are; 2) a description of how current Code does and does not address them; 3) a summary of the results on the 2018 Citizen Survey, which had questions discussing how STRs might be regulated; and 4) an overview of how other cities are regulating this use. Council consensus at that meeting directed staff to prepare a survey for City Council to take that would gauge policy direction on various regulatory approaches for STRs. The City Council survey was forwarded to Council in July and staff compiled the results in early-September. Those results are attached, as well as a staff summary of where there was and was not Council consensus. FINANCIAL IMPACT: The financial impact of regulating STRs is difficult to measure without additional policy direction from Council on a regulatory approach. Regulating them in any manner will require staff resources, and depending on the approach, likely additional staff resources. It is possible to Item No. 2 Short Term Rentals October 21, 2019 Page 2 generate revenue to offset all or a portion of those staff costs, through the imposition of a lodger’s tax (or equivalent) or a STR licensing/registration fee. Staff impacts/costs would vary based on two primary factors: 1) the complexity of the licensing system; and 2) the level of enforcement desired. BACKGROUND: Short term rentals are accommodations for the overnight lodging of fee-paying guests, typically for less than 30 consecutive days in duration and typically out of town visitors. STRs can range from the rental of a single room to the rental of an entire dwelling unit. STRs do not typically include the provision of meals or other on-site services, which is common in more traditional bed and breakfasts. Bed and breakfasts are currently regulated in municipal code and are allowed in all residential zone districts as a “special use” and require a special use permit. Bed and breakfasts also have certain performance standards, relative to minimum lot size, a maximum of 4 total guest rooms, minimum parking requirements, etc. STRs have existed in one form or fashion for decades; though they have become much more prevalent as a land use phenomenon in the last 10 years. As noted previously, they have been identified as likely existing in Wheat Ridge for at least the last several years. RECOMMENDATIONS: Staff requests direction from City Council whether, and if so how, to regulate short term rentals in the Wheat Ridge. ATTACHMENTS: 1. September 9, 2019 Memo from Scott Cutler summarizing the Council survey results 2. Council Survey results 3. March 18, 2019 staff report and attachments Memorandum TO: Kenneth Johnstone, Community Development Director Lauren Mikulak, Planning Manager FROM: Scott Cutler, Planner II DATE: September 9, 2019 SUBJECT: Short-Term Rental Survey Summary – July 2019 In July of this year, a survey was sent to the Mayor and City Council obtain feedback on a variety of issues related to Short-Term Rentals (STRs). The 22-question survey covered a variety of topics, including licensing, occupancy regulations, enforcement, STR location, and some free-response questions. All members of Council and the Mayor responded to the survey. On some issues, there was clear consensus, but for many topics there was no consensus. In general, Council is supportive of regulating STRs and collecting taxes, but is not unified on the substantive issues of how to regulate or where to allow them. This memo summarizes the findings and themes found in the provided survey answers. The full survey results are also provided for your reference which include answers to the free-response questions. Consensus Council is highly supportive of regulating Short-Term Rentals and collecting taxes. They were also supportive of allowing a registration grace period, dedicating additional staff resources, and allowing “partial home” STRs. This is evidenced by the following survey questions and responses: •STRs should be regulated under a separate short-term rental license (8 of 9 respondentsselected this answer) •STRs should have an annual short-term rental license fee (7 of 9 respondents selected this answer, and 1 additional respondent wanted to use the existing business license fee) •All agreed a Lodger’s Tax should be collected. There was no consensus, however, overwhether the existing model for hotel lodger’s tax should be used, or a customized model/rate should be used for STRs. •“Partial home” STRs should be allowed (7 of 9 were supportive or somewhatsupportive, with 1 opposed and 1 unsure) •A grace period for existing short-term rentals to register prior to any potential enforcement (7 of 9 respondents were supportive) •Additional staff resources should be dedicated to enforcing STR regulations (8 of 9 ATTACHMENT 1 respondents were “very willing” or “somewhat willing” to dedicate additional resources) Generally supportive • Occupancy requirement for owner or primary resident to use the property as their primary residence. (6 were supportive or somewhat supportive, 2 were opposed, 1 was unsure) No Consensus While Council was supportive of regulating and taxing STRs, there was no consensus on where they should be allowed, if “whole home” STRs should be allowed, and what limits should be placed on STRs. • Allowing “whole home” STRs (4 were supportive, 3 were opposed, 2 not sure) • Allowing STRs in all or some residential zone districts (5 were supportive, 3 were opposed for both questions) • Prohibiting STRs in R-1 zone districts (5 were opposed, 3 were supportive) • Allowing STRs in commercial/mixed-use (5 were supportive, 3 were opposed, 2 were not sure) • Limit on number of days (4 said no for various reasons, 3 said limit number of days) • Primary enforcement concerns were relatively equally mixed between noise, registration/compliance, exceeding occupancy limits, and parking Unsure • Buffer/spacing requirements (4 of 9 were unsure). More information may be necessary. 66.67%6 22.22%2 11.11%1 Q1 Have you stayed in a short-term rental? If so, which service/website did you use to rent the unit? Answered: 9 Skipped: 0 TOTAL 9 #SERVICE DATE 1 AirBnB 8/27/2019 4:10 AM 2 B and Bs 7/30/2019 2:30 AM 3 VRBO & airnb 7/22/2019 2:18 PM 4 Air bnb 7/22/2019 9:37 AM 5 VRBO 7/22/2019 3:36 AM Yes No Not Sure 0%10%20%30%40%50%60%70%80%90%100% ANSWER CHOICES RESPONSES Yes No Not Sure 1 / 22 Short-Term Rentals ATTACHMENT 2 77.78%7 22.22%2 0.00%0 0.00%0 Q2 How familiar are you with the concept of short-term rentals? Answered: 9 Skipped: 0 TOTAL 9 Very familiar Somewhat familiar Somewhat unfamiliar Very unfamiliar 0%10%20%30%40%50%60%70%80%90%100% ANSWER CHOICES RESPONSES Very familiar Somewhat familiar Somewhat unfamiliar Very unfamiliar 2 / 22 Short-Term Rentals 88.89%8 0.00%0 0.00%0 0.00%0 0.00%0 11.11%1 Q3 Should short-term rentals be licensed in Wheat Ridge? Answered: 9 Skipped: 0 TOTAL 9 #OTHER (PLEASE SPECIFY)DATE 1 Not Allowed. Period.7/31/2019 7:12 AM Yes – under a separate... Yes – underthe existing... No – but they should be... No – no required... Don’t know Other (please specify) 0%10%20%30%40%50%60%70%80%90%100% ANSWER CHOICES RESPONSES Yes – under a separate short-term rental license Yes – under the existing business license application No – but they should be registered in some other way with the City No – no required registration with the City Don’t know Other (please specify) 3 / 22 Short-Term Rentals 77.78%7 11.11%1 0.00%0 0.00%0 11.11%1 Q4 Should there be a license fee to register a short-term rental? Answered: 9 Skipped: 0 TOTAL 9 #OTHER (PLEASE SPECIFY)DATE 1 open to recommendations of staff on process 7/22/2019 2:20 PM Yes – an annual... Yes – underthe existing... No – the application... Don’t know Other (please specify) 0%10%20%30%40%50%60%70%80%90%100% ANSWER CHOICES RESPONSES Yes – an annual short-term rental license fee should be applied Yes – under the existing business license application fee No – the application should be free Don’t know Other (please specify) 4 / 22 Short-Term Rentals 66.67%6 33.33%3 0.00%0 0.00%0 0.00%0 Q5 Should the City collect a lodger’s tax similar to hotels for short-term rentals? Answered: 9 Skipped: 0 TOTAL 9 #OTHER (PLEASE SPECIFY)DATE There are no responses. Yes – use the existing mod... Yes – use a customized... No – no additional tax Don’t know Other (please specify) 0%10%20%30%40%50%60%70%80%90%100% ANSWER CHOICES RESPONSES Yes – use the existing model for hotels Yes – use a customized model or rate for short-term rentals No – no additional tax Don’t know Other (please specify) 5 / 22 Short-Term Rentals 77.78%7 0.00%0 0.00%0 0.00%0 22.22%2 Q6 How supportive are you of allowing existing short-term rentals to have a grace period to register prior to any potential enforcement? Answered: 9 Skipped: 0 TOTAL 9 Supportive Somewhat supportive Neutral / not sure Somewhat opposed Opposed 0%10%20%30%40%50%60%70%80%90%100% ANSWER CHOICES RESPONSES Supportive Somewhat supportive Neutral / not sure Somewhat opposed Opposed 6 / 22 Short-Term Rentals 44.44%4 22.22%2 11.11%1 22.22%2 0.00%0 Q7 Are you supportive of an owner or primary resident occupancy requirement? This requirement typically means that an owner or primary resident (long-term renter with landlord approval) must use the property as their primary residence, living there at least half the year. Answered: 9 Skipped: 0 TOTAL 9 Supportive Somewhat supportive Neutral / not sure Somewhat opposed Opposed 0%10%20%30%40%50%60%70%80%90%100% ANSWER CHOICES RESPONSES Supportive Somewhat supportive Neutral / not sure Somewhat opposed Opposed 7 / 22 Short-Term Rentals 22.22%2 22.22%2 22.22%2 11.11%1 22.22%2 Q8 Should “whole home” short-term rentals be allowed? This is when an owner or primary resident rents out the entire dwelling unit and is not on- site during the stay. Answered: 9 Skipped: 0 TOTAL 9 Supportive Somewhat supportive Neutral / notsure Somewhat opposed Opposed 0%10%20%30%40%50%60%70%80%90%100% ANSWER CHOICES RESPONSES Supportive Somewhat supportive Neutral / not sure Somewhat opposed Opposed 8 / 22 Short-Term Rentals 55.56%5 22.22%2 11.11%1 0.00%0 11.11%1 Q9 Should “partial home” short-term rentals be allowed? This is when an owner or primary resident rents out a portion of a dwelling unit, such as a bedroom or basement, but not the entire dwelling unit. Answered: 9 Skipped: 0 TOTAL 9 Supportive Somewhat supportive Neutral / notsure Somewhat opposed Opposed 0%10%20%30%40%50%60%70%80%90%100% ANSWER CHOICES RESPONSES Supportive Somewhat supportive Neutral / not sure Somewhat opposed Opposed 9 / 22 Short-Term Rentals 22.22%2 11.11%1 11.11%1 33.33%3 0.00%0 22.22%2 Q10 Should there be a limitation on the amount of days a property owner or primary resident can operate a short-term rental? Answered: 9 Skipped: 0 TOTAL 9 #OTHER (PLEASE SPECIFY)DATE 1 I would think 30 days... since we are looking to that for hotels, however open 7/22/2019 2:21 PM 2 a 7/19/2019 8:16 AM No – limits property rig... No – difficult to enforce No – because an... Yes – limit to a specific... Yes – limit based on typ... Other (please specify) 0%10%20%30%40%50%60%70%80%90%100% ANSWER CHOICES RESPONSES No – limits property rights of owner or operator No – difficult to enforce No – because an owner/primary resident occupancy requirement already limits it to 180 days Yes – limit to a specific number of days Yes – limit based on type of rental (whole home vs. partial home) Other (please specify) 10 / 22 Short-Term Rentals Q11 What are your enforcement concerns associated with short-term rentals? Rank the following items, 1 being the highest concern and 5 being the least concern. If you do not have enforcement concerns, leave this question blank. Answered: 7 Skipped: 2 28.57% 2 14.29% 1 14.29% 1 42.86% 3 0.00% 0 7 3.29 0.00% 0 0.00% 0 0.00% 0 57.14% 4 42.86% 3 7 1.57 42.86% 3 42.86% 3 0.00% 0 0.00% 0 14.29% 1 7 4.00 28.57% 2 28.57% 2 0.00% 0 0.00% 0 42.86% 3 7 3.00 0.00% 0 14.29% 1 85.71% 6 0.00% 0 0.00% 0 7 3.14 Noise Trash Registration and complian... Exceeding occupancy... Parking 0 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 TOTAL SCORE Noise Trash Registration and compliance with local/regional taxes Exceeding occupancy limits Parking 11 / 22 Short-Term Rentals Q12 Do you have any other enforcement concerns not identified in Question 11? Answered: 6 Skipped: 3 #RESPONSES DATE 1 No 8/27/2019 4:14 AM 2 Who are the renters?7/31/2019 7:15 AM 3 Life/safety compliance; enforcement mechanisms and sanctions 7/30/2019 2:43 AM 4 The companies police themselves 7/22/2019 2:22 PM 5 No 7/22/2019 9:41 AM 6 Zoning laws- multifamily vs single family, complaint process, amenities required 7/22/2019 5:28 AM 12 / 22 Short-Term Rentals 55.56%5 33.33%3 11.11%1 0.00%0 0.00%0 Q13 Enforcement against potentially illegal STRs can be challenging and resource intensive and would almost certainly require additional staff/financial resources. How willing are you to dedicate additional staff resources for enforcement? Answered: 9 Skipped: 0 TOTAL 9 Very willing Somewhat willing Neutral / not sure Somewhat unwilling Very unwilling 0%10%20%30%40%50%60%70%80%90%100% ANSWER CHOICES RESPONSES Very willing Somewhat willing Neutral / not sure Somewhat unwilling Very unwilling 13 / 22 Short-Term Rentals 33.33%3 22.22%2 11.11%1 0.00%0 33.33%3 Q14 How supportive are you of allowing short-term rentals in all residential zone districts? Answered: 9 Skipped: 0 TOTAL 9 Supportive Somewhat supportive Neutral / not sure Somewhat opposed Opposed 0%10%20%30%40%50%60%70%80%90%100% ANSWER CHOICES RESPONSES Supportive Somewhat supportive Neutral / not sure Somewhat opposed Opposed 14 / 22 Short-Term Rentals 33.33%3 22.22%2 11.11%1 11.11%1 22.22%2 Q15 How supportive are you of allowing short-term rentals in some, but not all, residential zone districts? Answered: 9 Skipped: 0 TOTAL 9 Supportive Somewhat supportive Neutral / not sure Somewhat opposed Opposed 0%10%20%30%40%50%60%70%80%90%100% ANSWER CHOICES RESPONSES Supportive Somewhat supportive Neutral / not sure Somewhat opposed Opposed 15 / 22 Short-Term Rentals 22.22%2 11.11%1 11.11%1 33.33%3 22.22%2 Q16 How supportive are you of prohibiting short term rentals in the Residential-One (R-1) zone district? Answered: 9 Skipped: 0 TOTAL 9 Supportive Somewhat supportive Neutral / not sure Somewhat opposed Opposed 0%10%20%30%40%50%60%70%80%90%100% ANSWER CHOICES RESPONSES Supportive Somewhat supportive Neutral / not sure Somewhat opposed Opposed 16 / 22 Short-Term Rentals 33.33%3 11.11%1 22.22%2 11.11%1 22.22%2 Q17 How supportive are you of allowing short-term rentals in commercial, industrial, and mixed-use zone districts where hospitality uses are already allowed (such as bed and breakfasts and hotels)? Answered: 9 Skipped: 0 TOTAL 9 Supportive Somewhat supportive Neutral / notsure Somewhat opposed Opposed 0%10%20%30%40%50%60%70%80%90%100% ANSWER CHOICES RESPONSES Supportive Somewhat supportive Neutral / not sure Somewhat opposed Opposed 17 / 22 Short-Term Rentals 22.22%2 11.11%1 44.44%4 11.11%1 11.11%1 Q18 How supportive are you of are buffer requirements between properties that operate short-term rentals? Answered: 9 Skipped: 0 TOTAL 9 Supportive Somewhat supportive Neutral / not sure Somewhat opposed Opposed 0%10%20%30%40%50%60%70%80%90%100% ANSWER CHOICES RESPONSES Supportive Somewhat supportive Neutral / not sure Somewhat opposed Opposed 18 / 22 Short-Term Rentals Q19 In general, how supportive of you are allowing short-term rentals in Wheat Ridge? Why? Answered: 8 Skipped: 1 #RESPONSES DATE 1 Supportive because it provides needed short housing relief, and flexibility to the homeowners. It is a reality in our greater marketplac, so we should manage it. 8/27/2019 4:21 AM 2 Not at all. We have hotels, use them. Residential neighborhoods are not business districts.7/31/2019 7:19 AM 3 Generally supportive provided a robust regulatory environment is in place.7/30/2019 3:13 AM 4 I believe it should be allowed and taxed 7/22/2019 2:32 PM 5 Supportive,7/22/2019 9:44 AM 6 Short-term rentals are a reality within our community and ought to be regulated in some form to allow for enforcement. It's better to address and regulate the market than have our city be silent with little to no ability to ensure that STRs are a net benefit to and for the community. 7/22/2019 5:41 AM 7 I think they can be a valuable service both for renters and operators. Many of the negative impacts are not necessarily STR-specific and can be addressed through code enforcement. Finally, enforcement of a ban would be difficult if not impossible. 7/22/2019 3:44 AM 8 Based on sufficient regulatory oversight, taxation, health and safety standards, and land-use constraints I would be supportive of limited days, owner on site, short-term rentals in non R1 zone districts, based on current occupancy standards. 7/19/2019 5:23 AM 19 / 22 Short-Term Rentals Q20 Regardless of your support level for short-term rentals, what opportunities, if any, do you think they could provide to the community or property owners? Answered: 8 Skipped: 1 #RESPONSES DATE 1 Tax revenue and visitation for City and supplemental income for owners.8/27/2019 4:21 AM 2 NONE!7/31/2019 7:19 AM 3 STRs can be a valuable income asset for property owners and may provide a way for homeowners to continue residency as income and occupancy levels change over time. 7/30/2019 3:13 AM 4 I think it does allow affordable housing if there are people renting a room. Honestly I think better regulated if this happens vs. trashy long term rentals. Supports property owner rights, and I think a safer option than long term 7/22/2019 2:32 PM 5 ?7/22/2019 9:44 AM 6 Primarily, a second income that could benefit residents. Respecting property rights within appropriate zoning. Attracting tourism within Wheat Ridge, which is outside the hustle/bustle of downtown but close enough to it and the mountains to be appealing to travelers. The mainstream industry is also fairly well regulated itself lending to high quality services but locally we need to be able to address the outliers. 7/22/2019 5:41 AM 7 In a time of high housing costs, they can be a valuable source of income for home owners.7/22/2019 3:44 AM 8 Increase in local economic activity. Increase in visitors to Wheat Ridge.7/19/2019 5:23 AM 20 / 22 Short-Term Rentals Q21 Regardless of your support level for short-term rentals, what concerns, if any, do you have about them in regards to the community as a whole? Answered: 8 Skipped: 1 #RESPONSES DATE 1 Getting owners signed up and compliant, and supporting the enforcement.8/27/2019 4:21 AM 2 It downgrades the community as a whole.7/31/2019 7:19 AM 3 STRs generally increase neighborhood occupancy and density and bring both desirable and undesirable impacts to the neighborhood: parking and noise issues; additional late night/early morning activity; additional “strangers” in the neighborhood; additional guests to visit local retail and restaurant establishments; income potential for local residents; tax and license income for the city; 7/30/2019 3:13 AM 4 I think better regulated than long term rentals. I think the parking concern is ridiculous. do we regulate long term rentals and or property owners 7/22/2019 2:32 PM 5 Fees must pay for the cost of regulation, limiting the # per block, limit the # of licenses to 2, one the is not owner occupied and and additional one if it is owner occupied, annual inspections and fee renewal required 7/22/2019 9:44 AM 6 Turning a single family zoning area into multi-family. Neighborhood issues...traffic, noise, trash.7/22/2019 5:41 AM 7 I don't see real issues with the community as a whole. I think the negative impacts are largely localized, and can hopefully be ameliorated at that level. 7/22/2019 3:44 AM 8 Short term rentals in part derive their value from being situated in a quiet residential neighborhood, which is in turn disrupted by the activities associated with short term rentals. Lack of appropriate taxation to recover both administrative and environmental costs/impacts associated with this program. Identification of Short term rentals maybe hindered by the number of online services to conduct a short term rental. 7/19/2019 5:23 AM 21 / 22 Short-Term Rentals Q22 Any additional thoughts? Answered: 4 Skipped: 5 #RESPONSES DATE 1 Thank you!8/27/2019 4:21 AM 2 no 7/31/2019 7:19 AM 3 STRs should balance fairly private property rights and community rights and desires. To allow these income features in a residential setting is an entitlement granted by the community to engage in commerce where people live. The economic benefit accrues almost primarily to the renter at (whatever) expense to the community. The community has the right to mitigate that expense (impacts) with a robust regulatory scheme that seeks to address the negative impacts (noise, parking, safety issues (both guest and neighbors), etc. and not be a resource drain for the municipality (indeed, slightly revenue positive). Most of these comments are also applicable to ADUs, also. 7/30/2019 3:13 AM 4 See 21 7/22/2019 9:44 AM 22 / 22 Short-Term Rentals Memorandum TO: Mayor and City Council FROM: Ken Johnstone, Community Development Director Marianne Schilling, Assistant to the City Manager DATE: March 18, 2019 SUBJECT: Short-Term Rental Overview ISSUE: City Council requested that Staff provide information regarding short-term rentals. BACKGROUND: Addressing short-term rentals (STRs) is a 2018/2019 Strategic Priority for City Council based upon the 2018 Strategic Plan. STRs are increasingly prevalent nationwide, largely due to the emergence of websites such as AirBnB and VRBO. Regulations for STRs are inconsistent and are nonexistent in many communities. The information below details an overview of STRs, the City’s current regulatory status regarding lodging, and a review of peer cities’ approach to and experience with STRs. Short-Term Rental Overview STRs are accommodations for the lodging of fee-paying guests for less than 30 consecutive days in duration. STRs fall under the umbrella definition of shared housing—unrelated people living in one dwelling unit or co-op—but are also distinct from shared housing because of the shorter rental duration and because occupants of STRs typically do not pool resources with the operators. Some communities, and the American Planning Association, also refer to STRs as “home sharing.” STRs can range from rental of a single room to rental of an entire dwelling unit. Accessory dwelling units, or ADUs, are additional dwelling units that may be attached to or within an existing single family detached dwelling, or may be built as a separate accessory structure on the same lot as the primary dwelling. Typically, ADUs are small structures behind a primary house or in a basement, attic space or above a garage. While an ADU could be used as a short-term rental, STRs are typically not required to be separate or independent dwellings. Over the past year, the City has not received any complaints regarding short-term rentals. However, on average, approximately three residents or prospective residents call the City on a monthly basis to ask about the process to become licensed as a STR owner. While the City does not currently regulate STRs, research from the website Host Compliance shows that there are approximately 140 STRs operating within city boundaries. This number makes up approximately one percent of the households in Wheat Ridge. ATTACHMENT 3 Short-Term Rental Overview March 18, 2019 Page 2 Current Code The City does not specifically address STRs in its code, but they are generally not permitted. The primary reasons they are not permitted are: • Code does allow for the “rooming and boarding” in all residential districts; however, it is only for a maximum of two individuals and for a period of not less than seven days, and • Code also requires that to rent the entirety of a dwelling, it must be for a period of not less than 30 days. Additionally, enforcement is challenging because of the two current provisions which allow renting rooms for a minimum of seven days and renting of entire dwellings for a minimum of 30 days. It would require significant staff resources to proactively monitor, document and successfully enforce an alleged STR over the course of those time periods, in order to be able to prove that the operator was violating those provisions. In the 2018 Citizen Survey, residents provided their level of support for or opposition to a number of policies that could be enacted regarding STRs in Wheat Ridge. The survey questions asked details regarding potential policies, but did not ask if residents supported the allowing for STRs in general. Overall, residents provided mixed reviews about policies related to short-term rentals in Wheat Ridge. Three policies regarding short-term rentals in Wheat Ridge garnered greater support than opposition among residents: • Allowing ADUs to be used as STRs • Requiring residents to apply for a City license to rent their property • Allowing single family homes, apartments or condos to be used as short-term rentals Short-Term Rental Overview March 18, 2019 Page 3 Renters were more supportive of the City allowing single family homes, apartments or condos to be used as STRs, while homeowners were more likely to support requiring the property owner to live in the house and only rent rooms. Peer review The City reached out to neighboring cities to find out how they are addressing STRs. Of the 14 cities and counties reviewed, nine are currently regulating STRs. Five either do not address STRs in their code or ban them explicitly. For the communities allowing STRs, if approved, the applicants paid a median cost of approximately $130 for a license and remitted both sales and lodger’s tax to their municipality. In general, there was no consistent strategy for regulating STRs. Some cities require that the rental is the owner’s primary residence while others allow for the property to be a non-primary residence. Cities require STRs to be located in residential zones (Colorado Springs), zones that allow hotel/motels for non-primary owners (Fort Collins), and/or no less than 500 feet from other STRs (Manitou Springs). As part of the research, Staff asked neighboring communities for feedback regarding the STR regulation process. The primary lessons learned are included below: • Adequate staff is necessary to administer a STR ordinance • Consider the enforcement strategy prior to rolling out the licensing process • If primary residence is required, consider the kind of documentation necessary to use as proof • Manage expectations of the process; STR homeowners may expect an online, seamless process • STR license owners may be more “high touch” than typical business licenses and require more staff time than usual Next Steps The purpose of the March 18 study session is to provide information regarding short-term rentals. Council may provide direction for Staff regarding next steps. ATTACHMENTS: 1. STR Peer Review Table 2. STR excerpt from 2018 Citizen Survey