Planning Commission recommends conditional use for short‑term rentals, more storefronts at 39 North Walnut

The Planning Commission recommended approval of a conditional use permit for 39 North Walnut LLC, allowing the building at 39 North Walnut Street to increase first‑floor commercial tenant spaces from seven to 10 and to permit the four second‑floor units to operate as short‑term rentals.

City staff opened the March public hearing by describing the request as a conditional use under the downtown C‑2 Central Business District zoning. Staff cited two sections of the municipal code: chapter 230‑13(C)(1), which groups short‑term lodging under motel/hotel uses, and chapter 230‑45, which treats mixed uses in any zoning district as conditional uses requiring council approval. Public notice for the hearing was published March 2, 2025, and properties within 200 feet were mailed notices.

Applicant representative Zach King told the commission the building currently contains seven commercial spaces on the first floor and four apartments above. He said recent interior reconfigurations split a larger ground‑floor office into multiple retail spaces and that the owners have operated short‑term rentals elsewhere since 2016. "It's a really good way to get travelers into town. I would say 90% of them go out to eat," King said, adding that the property has a fire suppression and alarm system and that the owner prefers downtown retail at street level.

Commissioners asked about parking and housing impacts. King said the property has no assigned off‑street parking and relies on shared city lots and on‑street spaces; he estimated a typical day needs parking for 20–30 cars and said parking becomes an issue about once a year during the Freedom Festival. A commissioner raised concerns that converting long‑term housing to short‑term rentals can reduce local housing stock and increase rental pressure; King responded that three of the four upstairs units currently are on 12‑month leases and that the owners would adjust to market demand.

After hearing no public speakers for or against the application, the commission voted to recommend adoption based on the staff analysis and compliance with the cited code sections. Commissioners Purcell, DeCassano, DeCotezazo, Sauls, Redden, Wright, Hammond and Sharp voted in favor; the motion carried.

The recommendation will go to city council for final action. The commission record shows the conditional use finding rested on the code criteria in chapter 230‑48 and the specific zoning sections cited by staff; any final council approval would be expected to reference those same provisions.