CC 2014-05-27_09.a. Ordinance Vacation Rentals and Homestays PresentationItem 9.a.
Consideration of Development Code Amendment Case No. 14-002 – Establishing regulations for vacation rentals and homestays
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Project Background
Staff has received numerous inquiries from interested participants and concerned neighbors regarding the regulation of vacation rentals and homestays
With increasing tourism and interest
in the City, these inquiries have increased
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Project Background
On March 4, 2014, the Planning Commission reviewed draft Ordinance modeling regulations for vacation rentals and homestays after existing Bed and Breakfast Inn regulations
The Planning
Commission provided direction to staff on modifications to the Ordinance, including:
Separate homestay regulations from bed and breakfast regulations
Determine administrative permitting
process instead of Conditional Use Permit
Limit homestays to a maximum of two (2) rooms
Do not allow on-site advertising of homestays
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Project Background
On March 18, 2014, the Planning Commission reviewed a revised Ordinance and recommended the City Council adopt the Ordinance with a modification to the annual noticing requirements for
vacation rentals
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Minor Use Permit-Plot Plan Review
Plot Plan Review is most applicable existing administrative permit
Approval certifies the use will satisfy provisions of Development Code
Code amendment requires property owner notification
of decision regarding vacation rental applications; not required for homestays
Currently $416 processing fee
Staff anticipates permit processing to take some time initially as the process
becomes familiar, but anticipates full cost recovery of staff time and resources
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Additions to Code Definitions
“Bed and breakfast inn” means an owner occupied dwelling unit where three (3) or more short-term lodging rooms and meals are provided for compensation or onsite signage is desired.
“Homestay”
means an owner-occupied dwelling unit where a maximum of two (2) short-term lodging rooms are provided for compensation.
“Vacation rental” means a structure being rented for less than
thirty (30) days without concurrently being occupied by the owner/operator where the short-term lodging is provided for compensation.
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Additions to Residential and Commercial Use Tables
Additions are proposed to the residential and commercial use tables of the AGMC
Tables 16.32.040-A and 16.36.030(A)
Based on Commission feedback, uses are proposed to be allowed in Residential
Estate (RE) district
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General Plan
Policies for vacation rentals and homestays not identified in General Plan. However, two Economic Development Element policies address tourism:
ED6-3: “Capitalize on development opportunities
to increase lodging facilities”
ED6-4: “Expand the City’s tourism potential through the internet and social media”
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General Plan
Land Use Element policies address protection of residential neighborhood characteristics:
LU12-10: “Ensure that residential accessory uses and buildings are consistent with the primary
residential character of the area, as well as the overall small town character of Arroyo Grande”
LU12-10.1: “Prohibit accessory uses or hobbies that would create additional traffic or
need for signage or parking, and ensure that the primary use of garage areas is for parking cars”
Staff does not think regulations in conflict with LU policies due to requirements to
minimize impacts on area and similarity of uses with visiting friends and relatives
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Community Meetings
Staff held community meetings on April 17 and May 1, 2014
Several main points emerged from meetings:
Need to consult General Plan and Municipal Code to navigate tough issues, as unscientific
neighborhood surveys are easily influenced
Safety is a major concern for operators and neighbors
Having regulations in place may be beneficial if use increases frequency, but may be
too early to tell if regulations are adequate for increase
Surrounding neighborhood should be minimally impacted by results of any regulations
Addressing potential overconcentration
might be necessary
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Concentration Limits
Concentration limits are implemented by some jurisdictions. Ex. SLO County
Intended to protect character and integrity of residential neighborhoods
Limit total number of permits issued
Limit
number of permits issued per year
Limit number of permits based on linear distance from existing operations
Limit number of permits based on linear distance from existing operations
on the same street
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Environmental Review
Staff determined project to be categorically exempt pursuant to Section 15061(b)(3) and 15308 of the California Environmental Quality Act (CEQA) Guidelines
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Public Notice and Comment
On Friday, May 16, 2014, a notice of public hearing was published in the Tribune, posted at City Hall, and on the City’s website
The agenda was posted at City Hall on Thursday, May 22,
2014 and the agenda and staff report were posted on the City’s website on Friday, May 23, 2014.
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Public Notice and Comment
Staff has received considerable public comment from individuals on both sides of the issue
Proponents of the regulations argue they provide lodging options for travelers, raise tax revenue
and commerce to the City, supplemental income for homeowners, and property investments that benefits the neighborhood
Opponents of the regulations argue that the commercial operations
increase traffic, on street parking demands, and noise in residential neighborhoods, as well as allowing strangers easier access into these neighborhoods
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Public Notice and Comment
Staff received one comment regarding the ability for the Plot Plan Review for a vacation rental or homestay to be transferred to a subsequent owner, and potentially advertised as a permitted
operation
Land use entitlements do run with the land and would be transferrable with the ordinance written as proposed
New owner would be required to obtain a business license to continue
operation
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Public Notice and Comment
Staff utilized the Community Voice feature of the new City Website to allow for further discussion on the proposed regulations
Three comments were received from the public, all in support
of the proposed Ordinance
Two of these were received later Friday, May 23 after agenda preparation
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Recommendation
The Planning Commission recommends the Council introduce the proposed Ordinance regulating vacation rentals and homestays
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