Midway council OKs conditional permit for nightly rental at 26 S. 200 W.; limits occupancy and parking

The Midway City Council approved a conditional use permit on Tuesday to allow short-term nightly rentals at 26 South 200 West, with conditions that limit occupancy to six people and require parking to be off the street. Councilmember Craig made the motion, seconded by Councilmember Jeff Jury; the council voted to approve the permit.

The issue came before the council as a public hearing after the property — which the council rezoned into the city’s transient rental overlay district two years ago — applied for the conditional use permit required by the code before it may receive a transient rental license. The discussion tied the specific permit request to broader concerns voiced by residents about parking, parties, enforcement and Midway’s reliance on resort-tax revenue.

Katie (city planner) presented the application and staff findings, saying the house is in a residential R-17 zone but lies adjacent to the commercial zone and Town Square and that letters were mailed to property owners within 600 feet of the lot. Per the application, the three-bedroom, one-bath home has a driveway that fits four vehicles and the owner proposed a maximum occupancy of six. The planning commission recommended approval with a condition allowing up to eight occupants or the maximum set by the building official/fire marshal, whichever was lower.

Chad Marsing, the applicant, told the council the family intends to use the house for visits and did not want it to become a “party house.” “We don't want it to be a nuisance to anybody,” Marsing said. Several nearby residents urged the council to deny or tighten the permit, citing repeated crowding, illegal nightly rentals on other streets and safety concerns. Resident Jody Nagness described multiple weekends with “15 cars in front of our house” and said the neighborhood has become disruptive. Lynette Woodson and Claire Provost said they worry about community character and traffic if more properties operate as short-term rentals.

Brad (city staff) explained the fiscal context the council repeatedly returned to: Midway’s resort tax — collected on transient lodging and counted by rentable rooms — brings roughly $1 million a year to the city and helps keep property taxes lower. He told the council that losing resort-tax eligibility would force the city to consider substantial revenue offsets, including raising the Midway property-tax line.

Council discussion addressed enforcement and code options. Staff said the city requires transient rental units to obtain a transient-unit license, register with the state for tax purposes, and pass building and fire inspections; property managers must maintain a local presence, per code. Councilmembers and residents also discussed illegal (unlicensed) rentals and described repeated enforcement efforts; city staff said the planning department is actively pursuing unlicensed operations and sending notices.

For this permit the council adopted conditions that set maximum occupancy at six people (as proposed by the applicant), limited parking to two off-street spaces (garage plus one driveway parking in effect), and noted that violations of the transient-rental licensing requirements can lead to enforcement actions that may include revocation of the rental license and could affect the approved conditional use permit. Councilmembers said they will also revisit the city’s zoning boundaries and transient-rental code in coming months to address broader neighborhood concerns.

The council repeatedly stressed that its action was constrained by current zoning and code: because the lot lies within the city’s transient rental overlay district (TROD) and R-17 zone, a conditional use permit is the process required under existing law. Several councilmembers asked staff to research options for longer-term changes to the overlay district and conditional-use rules to give voters and the council clearer policy choices in future meetings.

The council directed staff to return with code revisions and enforcement clarifications at a future meeting; staff said a revised transient-rental licensing code is scheduled for the next council meeting for further review.