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HomeMy WebLinkAbout9.0 BOCC Staff Report 11.16.2015Board of County Commissioners — Public Hearing Exhibits Short Term Rentals - Text Amendment Applicant is Garfield County Board of County Commissioners November 16, 2015 (File TXTP-09-15-8386) LETTER EXHIBIT 1 Proof of Publication 2 Public Hearing Notice Information Form 3 Garfield County Land Use and Development Code of 2013, as amended 4 Garfield County Comprehensive Plan 2030, as amended 5 Application 6 Staff Report 7 Staff Presentation Ape/ �.s ✓ PCc Fi��P� " �� PROJECT INFORMATION TYPE OF REVIEW: Text Amendment to the Garfield County Land Use and Development Code Short -Term Rental of Residential Dwelling Units FILE NUMBER: TXTP-09-15-8386 APPLICANT: Board of County Commissioners DATE: November 16, 2015 I. PROPOSAL DESCRIPTION BACKGROUND Over the past several years, short-term rentals (aka vacation rentals) of residential housing units have become widely popular. With the advent of the "sharing economy", websites such as VRBO, FlipKey, Home Away, Craigslist and airbnb have expanded the choice of nightly accommodations available to visitors through the nightly rental of otherwise single-family or multi -family long-term dwelling units. While the nightly rental of residential properties has been occurring for years, it has been primarily limited to highly visible tourist destinations and the units have been managed by local companies. The sharing economy has democratized this market and has allowed property owners in less tourist oriented locations and with less resources available to pay a management company to rent their otherwise typically unused properties to visitors on a nightly basis. Such democratization and a "sharing" of resources possess new challenges from a governmental and community perspective, however. The Garfield County Land Use and Development Code (LUDC) currently does not contemplate the use of short-term rentals. The closest use that is identified in the LUDC is a Lodging Facility. A Lodging Facility is defined as follows: An accommodation for a temporary stay that includes, but is not limited to, a resort lodge, guest ranch, overnight shelter, motel, hotel, boarding house, and bed and breakfast establishment. Lodging Facilities exclude seasonal or Temporary Employee Housing on premises; contracted employee housing off premises; seasonal rental of homes; and lock- outs,- or portions of homes, consisting of 2 or fewer independent lodging units whether managed by a lodging management agency or not. The second sentence of the definition identifies uses that are excluded, which consists of "lock -outs, or portions of homes, consisting of 2 or fewer independent lodging units whether managed by a lodging management agency or not." This type of use, which would include a "short-term rental" of a residential property, is neither further defined nor an allowed use within the Code. In addition, this use is not specifically allowed within Section 3-403, Use Table. Division 4 of the LUDC states that "Development or use of a property for any other use not specifically allowed in the use table and approved under the appropriate process is prohibited." As a result, short-term rentals of residential properties is currently a prohibited use within unincorporated Garfield County. In 2011, the National Association of Realtors (NAR) commissioned a White Paper on "Short -Term Housing Restrictions". The definition of a Short -Term Rental within this paper is excerpted below. It is worth noting that while some websites facilitate the rental of individual rooms or even beds within residential units, 1 which also occurs throughout the County, this Memo and below definition addresses only the rental of an entire residential dwelling unit. The term "short-term rental housing" typically means a dwelling unit that is rented for a period of less than thirty consecutive days. In general, short term rental housing differs from bed & breakfasts, hotels, motels, and other "lodging" uses by providing complete, independent living facilities for one or more persons, including permanent provisions for living, sleeping, eating, cooking and sanitation. Although bed & breakfasts often are similar in appearance and location to many short-term rentals, they are distinguishable by the presence of the owner/operator onsite. Boarding houses differ from short-term rentals by having multiple rooms or units for rent and common kitchen and dining facilities that are shared by the occupants. Boarding houses also tend to be less transient than short-term rentals. Similarly, hotels and motels are distinguishable from short-term rentals by having separate entrances and an on-site management office. In some communities, short-term rental housing may be referred to as vacation rentals, transient rentals, or resort dwelling units. Although the exact number of residential units available for rent within unincorporated Garfield County is difficult to specifically identify, a search of just the above noted websites indicates that the number of units available for rent at some point during a given year number over one -hundred (100). The geographic distribution of these units is heavily weighted to the east end of the County with many inside the City of Glenwood Springs and the Town of Carbondale as well as throughout the unincorporated area. The number of units listed for rent west of New Castle drops significantly to near zero around Parachute and Battlement Mesa. While some of the impacts from short-term rentals are easy to understand, the NAR commissioned White Paper outlines some of the general impacts and ways in which communities across the country have tried to deal with these impacts. According to the Paper, there are five major impact areas jurisdictions attempt to address through regulation, as outlined below. - Protection of Neighborhood Environment - noise, late night parties, trespassing, increased traffic, and visitors generally not being neighborly. - Protection of Physical Characteristics — absentee property owners can be Tess attentive to routine maintenance such as painting, lawn maintenance, tree and shrub punning and trash removal. Revenue — if the property owner does not obtain a State sales tax license, this can mean lost revenue for the County. - Fairer Competition with Licensed Lodging — it has been argued that a lack of regulation for short- term rentals results in unfair competition for hotels, motels and bed and breakfasts that must pay higher taxes and abide by more stringent site development and building codes. Protection of Renter Safety — while commercial establishments must be constructed to comply with the building code regulations for a hotel, residential units for rent are unlikely to have been built to such standards. As a result, health and safety concerns may be present in residential units which are rented like a commercial establishment. 2 Staff has reviewed the land use codes and zoning ordinances of 26 jurisdictions throughout Colorado including all 6 municipalities within the County. A detailed summary of these findings is attached. Of the municipalities in Garfield County, only Glenwood Springs and New Castle address short term rentals while the use is generally undefined in Carbondale, Silt, Rifle and Parachute. The range of regulatory permissiveness among the jurisdictions surveyed generally corresponded with the major types of short-term rental restrictions outlined within the NAR White Paper. According to the Paper, there are four main types of restrictions, as outlined below. Prohibition—of the 26 jurisdictions reviewed by Staff, only one, the City of Boulder, has an outright prohibition on short-term rentals. And even in this case, the prohibition is only until the issue of taxation of the units can be brought to the voters. Although an example may exist, Staff found no cases in Colorado where a prohibition on short-term housing exists for any of the impacts outlined previously. Geographically -Based Restrictions — geographically -based restrictions were common among the jurisdictions reviewed by Staff. The vast majority of these restrictions only allowed short-term rentals in specific zone districts. The City of Glenwood Springs utilizes this form of restriction. Other examples include the use of an overlay zone in the Town of Avon and the use of a minimum lot size of one acre in Jefferson County. As a variation on geographically based restrictions, Boulder County employs a tiered review system based on lot size and the number of nights per year the unit is rented. Quantitative and Operational Restrictions — While quantitative limits were only found in the City of Durango, where short-term rentals are limited to one per street segment and a maximum number within certain zone districts, operational limits were the most common form of restriction. The NAR White Paper identifies 8 general areas of operational restriction found nationwide, 7 of the 8 were found among the Colorado jurisdictions that were reviewed. The observed operational restrictions are outlined below. o Maximum Occupancy Limits — occupancy limits were found in 6 of the 26 surveyed jurisdictions. These restrictions range from a simple numerical limit, such as Estes Park which limits occupancy to 8, to relying on the limits imposed by the building code, which is utilized by the City of Glenwood Springs. Other examples are San Miguel County which limits to 2 people per bedroom unless a greater occupancy is permitted by the Onsite Wastewater Treatment System (OWTS) or Boulder County which imposes a limit of 2 people per bedroom with a maximum of 8, unless approved by the director. o Rental Period Restrictions — rental period restrictions was not a common operational restriction. The Town of Telluride has the most notable rental period restrictions of the surveyed jurisdictions. The Town allows short-term rentals as a use -by -right in residential zone districts as long as the unit is rented no more than three times for a maximum of 30 days per year. o Parking Requirements — parking requirements were found in 8 of the 26 surveyed jurisdictions. The type of parking restrictions ranged from the location where tenants may 3 park, such as the City of Glenwood Springs which prohibits parking on grass or sidewalks, to a minimum number of parking spaces required. In the case of Estes Park, a restriction is employed that limits the number of cars that can be parked at a short-term rental unit to three and prohibits on -street parking. o Noise Level Limits — the most common method for jurisdictions to apply noise restrictions is to require the short-term rental units to abide by all State and local noise statutes and ordinances. The Town of Basalt has the most nuanced regulations prohibiting all amplified music or other outdoor devices after 10 PM. Other jurisdictions that have specific language related to noise are Colorado Springs, Grand County, the Town of Telluride and Lake County. o Required Posting — required posting was found in 5 of the 26 surveyed jurisdictions. While these postings are to be located within the residence to provide the visitor with information about the local laws and regulations, occupancy limits, trash collection, parking, etc., the City of Aspen also recommends an outdoor posting of the property which provides contact information for the local manager of the property. o Mandatory Designated Representative —the requirement for a designated representative located within the local area and available 24 -hours per day is common among the surveyed jurisdictions, including the City of Glenwood Springs. o Trash and Recycling Facility Storage—trash and recycling storage can be an issue for short- term rental units. This is because the timeframe for guests at the unit may not correspond with trash and recycling pick up days. As a result, trash and recycling can end up being stored outdoors for several days before it is picked up. In response, the Town of Ridgway, Town of Telluride, Lake County, and San Miguel County all require that garbage be stored in bear proof containers or a bear proof structure. - Registration/Licensing Requirements — the primary theme among the regulations reviewed by Staff is the requirement for short-term rentals to obtain local and State sales tax licenses. For towns such as New Castle, Avon and Vail where no land use or zoning permits are issued for short- term rentals, the only requirement is that a sales -tax license be obtained with the State and town. Counties tended to be less concerned with sales tax collection than municipalities, which often have local lodging taxes. Boulder County, for instance, has one of the most extensive and nuanced land use review processes yet does not mention the collection of sales tax. Meanwhile, the City of Boulder has determined short-term rentals to be illegal until the issue a taxation can go on the ballot for popular vote. Beyond the application of the LUDC to short-term rentals, the building code possess an additional regulatory challenge. While the building code can adapt to short term rentals, certain items need to be addressed with each of the short term rental units. Specifically, the occupancy rate should not exceed the capacity rating for the unit as defined by the International Building Code (IBC) or the capacity of Onsite Wastewater Treatment System (OWTS). In addition, smoke and carbon monoxide detectors need to be in place and operational and emergency egress doors, windows, stairs and routes need to meet the IBC requirements. Many communities have dealt with these issues by requiring posting of the occupancy limit, providing a checklist of the items that need to be maintained in the home (e.g. alarms), and some 4 go as far as requiring an inspection of the home to ensure these building code issues are addressed. Meanwhile, other jurisdictions such as the Town of Vail, Town of Avon and Pitkin County consider the use to remain residential in regards to the Building Code, even if it is being rented on a night►y basis, and do not require any additional inspections or standards. Code enforcement related to these units are also a challenge due to variable use by different people over time. In addition, the units can be very quickly made available for rent or removed from the marketplace. Historically, the County has only pursued code enforcement in regard to these units if there is a complaint filed. For example, Staff has over the past two years received complaints and issued Notices of Violation (NOV) for four short term rentals of which one was located in Cheyln Acres and three where located in Elk Springs; a subdivision that prohibits short-term rentals in the covenants. Even as the popularity of these rental units have increased over the past 15 years, very few complaints have been filed with the County. II. SUMMARY OF RECOMMENDED CHANGES On September 10, 2015 Staff presented the issues surrounding Short -Term Rentals to the Board of County Commissioners (BOCC) in a Work Session. As a result of the discussion, the BOCC directed Staff to begin the process of amending the Land Use and Development Code (LUDC) to permit the short-term rental of residential dwelling units throughout the County as a Use -By -Right without Standards. PLANNING COMMISSION RECOMMENDATION On October 14, 0215, the Planning Commission held a public hearing regarding amending Articles 3 and 15 of the Garfield County LUDC to allow the short-term rental of residential dwelling units in all zone districts without standards added to Article 7. By a vote of 6 to 0, the Planning Commission recommends that the Board approve amendments to the LUDC which would allow the short-term rental of residential dwelling units in all zone district without standards, as proposed. 5 Below is the proposed Use Table 3-403, identifying Short Term Rentals as a Use -by -Right without Use Specific Standards. Iii a NV/i .. F Table Review R 3-403: RS RU Use RM HP Table , ,, PL Exempt RL P RL F from RL TS County Rt Gti Review and Standards L CG IIIIIIIIIIIIIIIIIIIIIIIIIIIIMIM=IMII. IIII III 1.1 Household Living Unit per 1c -gal Ict) P P P P P• P � P Dwelt,ng, 2-Unrt A A A A A A • •••• Dwelling. Multi -Unit LL AL L L L • •• Dwelling Unit, Accessory A A A A A A A • A A A A 7-701 Cabin P ■....■. P P Short Temi Rentals PP P P P P P • P P P P -_ Manufactured Home Park MMM AM • .-.. 7-703 Office Home OfficeTBusiness PP P P P P P • P P P P 7-702 Group Living Foster Home PP P P P P P • ...--■'. Group Home Facilities 1 LLLP ■■ • ■■■ L 7-704 Temporary Employee Housing Faaiity Ia or MMMMMMM • 1 1 L L 7-705 Employee Housing Facility, Minor A' Al A' A' A' A' • Al A' A' A' 7-706 Employee Housing Faunty, S,ma11 PP PPP PP • P P P P 7-707 A review of the current definition for a Lodging Facility includes "Seasonal Rental of Homes", which is also not defined in the LUDC. Staff proposes a definition that is inclusive of both Short Term and Seasonal Rentals. Below is the proposed definition for Short Term Rentals as well as the modified definition for Lodging Facilities. Short -Term Rentals. A residential dwelling unit that is rented for a period of one (1) year or less including uses such as nightly, weekly, monthly or seasonal rental of homes, lock- outs, and portions of homes consisting of 2 or fewer independent lodging units whether managed by a lodging management agency or not. Lodging Facility. An accommodation for a temporary stay that includes, but is not limited to, a resort lodge, guest ranch, overnight shelter, motel, hotel, boarding house, and bed and breakfast establishment. Lodging Facilities exclude Short Term Rentals, seasonal or and Temporary Employee Housing on premises, and contracted employee housing off premises. ; seasonal rental of homes; and lock outs, or portions of homes, consisting of 2 or fewer independent lodging units whether managed by a lodging management agency or not. 6 III. STAFF ANALYSIS — LUDC CRITERIA FOR A TEXT AMENDMENT Section 4-114 outlines the procedures and criteria for consideration of a Land Use Code Text Amendment request to the LUDC. The criteria for approval of a Land Use Code Text Amendment are as follows: 1. The proposed text amendment is in compliance with any applicable intergovernmental agreements; and There are no intergovernmental agreements impacted by the proposed text amendment. 2. The proposed text amendment does not conflict with State law. There are no State Statutes that would be in conflict with the proposed text amendment. IV. STAFF RECOMMENDATION Staff recommends that the Board of County Commissioners approve of the text amendments as recommended by the Planning Commission and as outlined in this memo. 7 a a 00 << m4 loc 0 v � m ?_;.c m o n m O g..• a w u w o a a` 0 0 Municipalities in Garfield County Yes — Only in Residential and Comm Zones Counties Jefferson Yes For Rent Yes— Yes— Yes Yes No Fire No — No Yes Yes Yes Yes — County 30 days County Notice Extinguisher, Unless Limited to or less BOA and to Smoke Alarm whole certain Sales Tax adjacent and CO property zone License property Detector; All is used districts owners applicable for Short and building Term j properties codes Rental , over 1 acre Yes — Limited to specific zones o9 IATI E a c }• o' H To C '- m C 01 a.) a U E t c N > m W. N 0 0a 0�° c v 1 .a-' N ` • a, E5 > .0.Y aas m > m > v > v > m > m > w > Yes — Not on grass or sidewalk o z E o 0 a 0 I > o i m > wal > > a > o z 0 z Yes — With ,inspection Yes — fire extinguisher, smoke alarms, CO detector a v$ r 0 U Lei c a 0 1v c o E v „n=0,0"2 9 v x E! o » 1« a m v E t m v Q a a 0 a c o u m x E; v LL LLI VI 0 Yes — Per International Property Maintenance Code (IPMC) 0 z O -c > u >• v ,, a O u w N an v `w 0 °1 v 3 d a c -0 N > a « m o N '^ O E� 0.430 a m> N r I E N r It' 0 > E L y Emo 0 0 E i 000 .N -i v >- W- N 0- N >1- z z° ua) I . .0 > ,sitz0 3 oiz u m m01 I '- N g C C m a E or E $$ ao oiz al w L- l '-' 0' 3 ° ao x w i E 'c ~ c T, ow°u >U0V1JZF� y '^ c x a 1 E m E c E> a }UDLJ 1 E cE YE> a c U0mJ 1 cc., 8c x a >UmFJ d p 0 t+l ? '� LL 2 m 2 W p 0 M T )52.2-3 d o> v� N lei N O W> z m a Y. M O a N K z a LL M O i > 0 .0 0 a Ca .0)C MM c c > 7 Undefined Undefined > i i Glenwood Springs New Castle Carbondale Silt Rifle Parachute > a C Om 20 L 0 b0 > C O Vf U > C C 2 O (Du )\ /\co cc \\ al X { CC\ ; eze {)`�® - , Dz Municipalities Outside Garfield County Avon Yes For Rent No — No Yes No Permit Install CO No No No Yes Yes — Only less than Need Detectors in Overlay 31 days Sales Tax Zone License 0 }_``@ \}2 )}( ]z.. ƒE0I8le a3 al il aE /{ Eg 0 0. z 1C. 5(00 >- ro 0. .0ƒ '�/) 0 8 6 /6{' k 70 _ T. So K2 ).2\f))J%§«3 0- .0 ('a C 0) )/ƒ{§;\ (i/ > &27222 ƒ7§tAa = E' -5,-' .9c ; \ EX/\\)i} J .E= a9 °! @ 43 E■k,��� _}/\} 0. �§\�/��r\0. �! _ j}\\ . j}\\ , /\)\\ \\\ j}\ Undefined Undefined )/ ƒj . //kj 3 § c LE' u a � c 0 0 0 m o m a p a a` c O t .c o 0, O 0 i- 3 v46 c m ai ._ T 1 N '� m 0 E T., c N '7, r. v E 0 0 c m z z E ,. y y u 1 E o o 3 v y 'c y y c N +„ o- y N >a._ vmmz vz o o z 0 0 y . c 0 .41-0- '^ y 'm E E ...-0.� I. u al •c v E. c a, o m.7 y E a N Yn E a t4 E c.2" c N t » v' . =o. vrn._. v Z y 1 E ; 0+ o. m v v c 2 2 2 a` > > T } Y v Z _Xy > Z } }Z 0 z 0 Z o Z a > a } 0 Z v 0 0 m 0 4 z ,n o z y >- o z O Z u .c u n Nu I 'a'c 0 Z 0 Z 0 Z 0} Z c N 0 O I'j v 0, O' _ n N ac E 4= t ,n _ c a) Yes — Per Building and Fire Codes O Z O z 0 z 0 0 O -0 O E > 1 2 y U _ y y ,p L » a 3 0 z 0 Z 0 Z 0 Z 0 Z 0 Z > > > .`43 `,13 iii0 z 0 z 0 z o z m r o z x i- 24 1 v c 0 001 N u Z Z VI J 0 Z 0 1 0 c 0 W u Z Z m J 0 a, 1 o c c 0 a01 0 Z Z m m} E ,ca 0 0,, I s c E 0 al U n co . 0 ,0n 1.0 c c al a1 Z Z a7 . c y .c T 1' O ,n LL d M 0 T 0, cc N 0 LLL m 0 W > ,n cC of •0 W LL rfl 0 aa) > ,n C N ` V a/ LL e.-1 0 y > ,n C m `0 al LL 0l 0 N > . K N ` 0 LL M O } } } } } } 0 v ot''. U N 0 -c 2m F Frisco D 0 m 0 N 3 p K 0 O a c 0 c .= Lg a 0. z a 0 Q Q 0 0. 0 m 0 T'O X a g w p 2 a a v d E C a z E 0 O I— '0 O .0 o ino Yes — Limited to specific zones c O N I m E o al > '- C N m illY O Y vY Recommended 00 Z Z N ''"1 L I c 0 > E z W Y W 0- 0 0 Z 0 Z 1 E C 1 E>' wp > u o m-(> t1,1' l 0 C 0 a a -0 .L, c m= E a u C a T v. O0 0 KI `o C a 0. on O ° m `o ill Y ril Y >.ov 1- u 0 c `m c — ro o 0 I v no as` K Z u 2, 0'a ate' L City of Aspen 0 a N v 0 V co N 0 "0 > O 11 00 Ad Name: 11617945A Customer: Garfield County Building Your account number is: 1008693 PROOF OF PUBLICATION THE RIFLE CITIZU1 TELeR M STATE OF COLORADO, COUNTY OF GARFIELD I, Michael Bennett, do solemnly swear that I am Publisher of The Rifle Citizen Telegram, that the same weekly newspaper printed, in whole or in part and published in the County of Garfield, State of Colorado, and has a general circulation therein; that said newspaper has been published continuously and uninterruptedly in said County of Garfield for a period of more than fifty-two consecutive weeks next prior to the first publication of the annexed legal notice or advertisement; that said newspaper has been admitted to the United States mails as a periodical under the provisions of the Act of March 3, 1879, or any amendments thereof, and that said newspaper is a weekly newspaper duly qualified for publishing legal notices and advertisements within the meaning of the laws of the State of Colorado. That the annexed legal notice or advertisement was published in the regular and entire issue of every number of said weekly newspaper for the period of 1 consecutive insertions; and that the first publication of said notice was in the issue of said newspaper dated 10/22/2015 and that the last publication of said notice was dated 10/22/2015 the issue of said newspaper. In witness whereof, I have here unto . y hand this 11/03/2015. Michael Bennett, Publisher Publisher Subscribed and sworn to before me, a notary public in and for the County of Garfield, State of Colorado this 11/03/2015. PAMELA J. SCHULTZ NOTARY PUBLIC STATE OF COLORADO NOTARY ID #19954030875 .thi Commission Expires November 1, 2019 .14 Pamela J. Schultz, Notary Public My Commission expires: November 1, 2019 PUBLIC NOTICE Take Notice that the Board of County Commission- ers has requested to amend multiple articles of the Land Use and Development Code including, but not limited, to Articles 3 and 15, in regard to short term residential rentals. Permit/File Number TX - TP -09-15-8386. The Application can be viewed at htto://www.garfield-county. com/comm u nity-devel- ooment/olanning-Project-information.asox - (go to "File Cabinet" and enter Permit/File Number). All persons affected by the proposed text amend- ment are invited to appear and state their views, protests or support. If you cannot appear person- ally at such hearing, then you are urged to state your views by letter, as the Board of County Com- missioners will give consideration to all comments received, in deciding whether to approve, modify or deny the proposed text amendments. The applica- tion may be reviewed at the office of the Commu- nity Development Department located at 108 8th Street, 4th Floor, Garfield County Administration Building, Glenwood Springs, Colorado between the hours of 8:30 a.m. and 5:00 p.m., Monday through Friday. A public hearing before the Board of County Com- missioners on this request has been scheduled for the 16th day of November at 1:00 p.m. in the County Commissioners Meeting Room, Garfield County Administration Building, 108 8th Street, Glenwood Springs, Colorado. Published in the Citizen Telegram October 22, 2015. (11617945) EXHIBIT EXHIBIT 1 Garfield County PUBLIC HEARING NOTICE INFORMATION Please check the appropriate boxes below based upon the notice that was conducted for your public hearing. In addition, please initial on the blank line next to the statements if they accurately reflect the described action. ❑ My application required written/mailed notice to adjacent property owners and mineral owners. Mailed notice was completed on the day of , 2015. All owners of record within a 200 foot radius of the subject parcel were identified as shown in the Clerk and Recorder's office at least 15 calendar days prior to sending notice. All owners of mineral interest in the subject property were identified through records in the Clerk and Recorder or Assessor, or through other means [list] ■ Please attach proof of certified, return receipt requested mailed notice. My application required Published notice. Notice was published on the 22 day of October , 2015. ■ Please attach proof of publication in the Rifle Citizen Telegram. 1--] My application required Posting of Notice. Notice was posted on the day of , 2015. Notice was posted so that at least one sign faced each adjacent road right of way generally used by the public. testify that the above information is true and accurate. Name: David Pesnichak, Senior Planner Date: October 22, 2015