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Clayton staff proposes narrow downtown short-term rental rules; board gives preliminary support
Summary
City staff proposed a narrowly tailored short-term rental policy for downtown Clayton on May 5 that would allow dedicated short-term units only, limit eligibility to small buildings, and require both a conditional-use permit and an annual short-term occupancy permit with operational rules and inspections.
City planning staff on May 5 presented a proposal to allow and regulate short-term rentals in a limited downtown area of Clayton as a tool to encourage reuse of older small office buildings. The staff presentation framed the proposal as a narrowly tailored pilot to balance reuse options for difficult-to-lease office properties with neighborhood impacts reported in other cities.
Staff recommended allowing only "dedicated" short-term rentals (units not occupied by a primary resident), with a minimum 24-hour rental term, limited to buildings with up to four dwelling units and capping the total number of eligible downtown properties at four. Conversions from office to residential would require a conditional-use permit (CUP) and then an annual short-term occupancy permit that triggers an annual inspection and operational requirements.
Operational requirements staff suggested include on-site posting of permit information, a local 24-hour contact for complaints, liability insurance, trash and recycling instructions, small-event prohibitions, and requiring booking platforms (e.g., Airbnb, VRBO) be informed of local regulations. Staff also recommended occupancy limits based on code (bedroom-size calculations) with a cap of eight occupants per unit (whichever is less) and a baseline parking requirement of one off-street parking space per unit, subject to modification through the CUP when the location warrants it.
Board members generally supported exploring the change but raised questions about parking, the risk of converting street-level commercial space, enforcement and hotel competition. Commissioner Bob Denlow said the approach could boost downtown vibrancy and provide lodging for visitors at different price points. Others asked staff to ensure short-term rentals do not replace active street-level commercial uses and suggested allowing alternative compliance for parking by arranging spaces at nearby garages. Staff said they will draft a text amendment and bring it back for a public hearing, providing written code language and details for review.
