Planning commission backs new short-term rental limits, sends ordinance to city council 6-1

Planning and Zoning Commissioners on an extended agenda item voted 6-1 to recommend amendments to the Unified Development Code that define “short-term rental unit,” add distance and density rules and repeal a prior interim prohibition. The commission’s recommendation will go to City Council for final action.

The revisions proposed by city staff would add a 1,000-foot minimum spacing between short-term rentals (STRs), limit STRs in multifamily buildings to 3% of units or two units (whichever is greater), and remove the expired interim one-year prohibition from the UDC. Staff said existing permitted STRs would be treated as legal nonconforming uses and could continue to operate and renew under current rules.

City planning staff noted outreach over nearly two years, including a ZenCity survey with 602 responses and in-person open houses. The presenter told the commission that the city currently has about 120 active STR permits and applications and that the 130-unit cap adopted earlier by council was based on single-family units; staff said they are considering raising that cap slightly toward 150 to allow limited multifamily participation. "We are getting very close to that cap on short term rentals," a staff presenter told the commission.

Commission discussion ranged from favoring strict limits to preserving property-owner rights. Commissioners acknowledged the rule package is an initial regulatory framework and said they expect to revisit it after implementation. Commissioners Ansley moved approval; Jack seconded. The motion passed 6-1.

Public speakers reflected the same split. Several residents urged protections for housing affordability and neighborhood character, including comments that STRs can raise rents. One resident asked the commission to prevent automatic transfer of STR permissions when a permitted property is sold; a speaker who identified himself as an STR owner defended existing hosts and said the current 130 cap already restricts density. Another member of the public, speaking in favor of stricter limits, asked that permits not be transferable to new owners because that could create a de facto permanent entitlement.

Staff clarified implementation details during questions: the registration fee is $400 per year (which includes inspection); STRs are required to remit hotel occupancy taxes; the cap is tracked separately from the UDC text and is in the municipal code; and the city maintains a waiting list and will offer openings to the next applicant if a permit expires or is revoked. Staff also said recorded calls for service tied to STR addresses have increased since permitting began, though they acknowledged better data availability may account for part of that rise.

The commission’s recommendation directs the ordinance forward to City Council, with a second and final public hearing anticipated at the council meeting on Aug. 18. Staff told commissioners the UDC amendment does not itself change the numerical cap; any changes to the cap would be handled in the city’s ordinances outside the UDC.