In a recent city council meeting, officials discussed an appeal from Ex Management, LLC regarding a substantial $55,000 civil penalty imposed for violations of short-term rental ordinances at a property located at 4413 Exposition Avenue. The appeal was presented by property owner Jonathan Folks, who argued that the fines were excessive and claimed that the tenants were actually timeshare owners, thus exempting him from compliance with short-term rental regulations.

Deputy City Attorney John Curtis outlined the case, emphasizing that the city had previously determined that the property was being used for short-term rentals without the necessary licenses. The city’s code enforcement manager, Eric McCoy, detailed the timeline of inspections and violations, noting that the property had been advertised for rentals of less than 31 days on multiple occasions, leading to the fines being assessed for 110 days of violations.

Folks acknowledged during the meeting that he had operated the property as a short-term rental but claimed he was misinformed about the legality of using an LLC structure to circumvent regulations. He expressed concern that the hefty fine could lead to foreclosure on the property, stating, “$55,000 on top of my mortgage is putting the place into basically foreclosure.”

Council members discussed the implications of the fine, with some expressing sympathy for Folks’ situation while also stressing the importance of enforcing city regulations to maintain community standards. Councilman Knutson highlighted the need for a consistent approach to penalties, noting that previous cases had resulted in fines exceeding $100,000.

The council ultimately indicated a willingness to consider a payment plan for Folks, allowing him to manage the financial burden without risking bankruptcy. The discussion underscored the city’s commitment to regulating short-term rentals while also recognizing the challenges faced by property owners in compliance with these laws.