During the Boulder City Council meeting on September 18, 2025, significant discussions centered around the introduction of a new ordinance aimed at establishing a festival lodging rental license. This initiative is in response to Boulder being designated as the host city for the Sundance Film Festival starting in 2027, which is expected to increase demand for temporary lodging during large events.

The proposed ordinance, presented by Brad Mueller, the director of planning and development services, seeks to create a streamlined process for property owners to rent out their homes during festival periods. The key goals of the ordinance include maintaining the primary residential use of properties while allowing for additional lodging options during major festivals. The ordinance is designed to be simple, building on existing short-term rental regulations but with specific modifications to accommodate festival needs.

One of the notable changes is that the new festival lodging rental license will allow non-principal residences to be eligible for rental, expanding the types of properties that can participate. This is a shift from the current short-term rental license, which is restricted to the owner's primary residence. The festival license will not require annual recertification, although property owners must still comply with safety and occupancy standards.

The ordinance stipulates that the festival lodging rental license can only be used during designated festival periods, specifically 10 days before and 9 days after a festival event. This limitation aims to prevent properties from being held vacant for extended periods solely for profit during festival times. The application fee for the license is set at $190, valid for four years, which translates to an annual cost of approximately $47.50.

Council members raised concerns about the potential for property owners to prioritize festival rentals over long-term housing needs. Discussions highlighted the risk that some owners might choose to leave properties vacant for most of the year to capitalize on higher festival rental rates. However, city officials expressed confidence that the economic feasibility of such a strategy would be limited, based on current market analyses.

Another point of contention was the definition of a "festival," which is still under development. The proposed working definition includes events lasting five or more consecutive days with expected attendance exceeding 50,000, which would surpass the capacity of local hotels. This definition aims to ensure that only significant events qualify for the festival lodging rental license.

The council is set to review amendments to the ordinance before a third reading scheduled for October 9, 2025. If approved, the ordinance will take effect on November 8, 2025, with the first licenses expected to be issued in early December. The city plans to launch a webpage to provide further information and updates for interested property owners.

In conclusion, the Boulder City Council's discussions reflect a proactive approach to managing the anticipated influx of visitors during major festivals while balancing the need for long-term housing stability in the community. The outcome of this ordinance could significantly shape the local rental landscape as Boulder prepares for its role as a festival host city.