A contentious debate over short-term rental regulations unfolded at the Lexington Board of Adjustment meeting on June 9, 2025, as the board considered an application for a conditional use permit for a property in the Agricultural Residential (AR) zone. The applicant, Chad Walker, seeks to operate a short-term rental on his 20-acre property, which has been in operation since 2019 but was halted due to zoning compliance issues.
Walker’s attorney, Chris Clendenin, argued that the property had been legally used as a short-term rental prior to a zoning ordinance amendment earlier this year, which now allows such rentals in the AR zone. Clenden emphasized that Walker had not abandoned the rental use but was instead instructed by government staff to cease operations pending a decision on the zoning regulations. He contended that Walker's application should be approved based on his successful operation of four other rentals in the area, all without compliance issues.
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Subscribe for Free However, the Rural Land Management Board raised significant concerns regarding a Purchase of Development Rights (PDR) agreement tied to the property, which they argue prohibits commercial uses, including short-term rentals. Beth Overman, the PDR director, clarified that the easement is a perpetual agreement that runs with the property and includes strict prohibitions against commercial activities. She noted that the federal government, through the Natural Resources Conservation Service (NRCS), also supports this interpretation, stating that short-term rentals are not allowed under the easement.
The board faced a complex legal landscape, with Clendenin arguing that the interpretation of the PDR agreement should not influence their decision on the rental permit. He insisted that the board should focus solely on whether Walker meets the criteria for a short-term rental permit, separate from the ongoing dispute over the easement.
As discussions continued, board members expressed concerns about the implications of approving a permit that might conflict with existing easement restrictions. The meeting highlighted the challenges local governments face in balancing property rights with regulatory frameworks designed to protect agricultural land and community interests.
The board is expected to deliberate further on the application, weighing the legal arguments presented against the backdrop of community standards and zoning laws. The outcome could set a precedent for future short-term rental applications in similar zones, as the city navigates the evolving landscape of rental regulations.