Zoning board recommends city council consider text amendment to allow small inns across contiguous buildings

GALENA, Ill. — The Galena Zoning Board of Appeals on Wednesday voted to forward a positive recommendation to the City Council for a text amendment to Section 154-406(d)(8) of the municipal code to allow “small inns” to be sited in multiple buildings on common, contiguous property.

The change, if adopted by the council, would not automatically allow any business to expand; it would change the ordinance language and leave actual approvals to later special‑use permit reviews, board members said. Proponents said the amendment would update zoning language to reflect how several long‑standing inns already operate and would make it easier for historic, owner‑occupied inns to adapt and expand. Opponents said the change could be used to create de facto short‑term rentals, bypass the city’s existing waitlist and affect residential neighborhoods.

Matthew Carroll, the applicant and owner of Jail Hill Inn, told the board the amendment is intended to reflect what has been done in practice and to allow owner‑operated inns with multiple buildings to continue operating under the “small inn” rules rather than under short‑term rental regulations. "Small inns operating under more than 1 building are not vacation rental properties," Carroll said, adding that service levels (breakfast, daily housekeeping and on‑site management) would remain the same. He said he currently operates six guest rooms and cited an ADA‑accessible space that was approved in 2021 but has been used for other guest services rather than as a seventh overnight room.

Local business owners and hospitality operators gave the board nearly unanimous public support. Brian Taylor, who owns downtown retail space, said Carroll’s inn draws higher‑spending visitors who shop Main Street and described the inn as distinct from short‑term rental platforms. "He's not running an Airbnb. He's running an inn," Taylor said.

Speakers representing the Galena Chamber of Commerce and several other business owners said allowing thoughtfully regulated, owner‑operated expansion would support local investment and help preserve historic buildings. Craig Brown and Jack Dieter told the board the proposed amendment would recognize long‑standing, successful uses and encourage continued restoration and spending in the downtown economy.

Several neighbors and other residents testified in opposition. Bill Grossas, whose property abuts a building Carroll purchased at 411 Meeker Street, said the amendment would allow what he described as a "short term vacation rental disguised as a 2 room extension" of a small inn and raised concerns about neighborhood character, parking and enforcement. Grossas also cited the city’s limit on short‑term rental licenses and a residential waitlist he said should not be circumvented. "This proposed text amendment has legal serious legal health serious legal and health and safety concerns," he told the board.

Opponents pointed to provisions in the city code limiting short‑term rentals in certain areas, the city’s waitlist for residential short‑term rental licenses, and ongoing comprehensive‑plan work that several board members said was relevant to long‑term zoning policy.

Members of the board spent extensive time discussing the amendment against the ordinance’s approval criteria. Some members argued the ordinance language as written — which has long defined a “small inn” as a single building — was intentionally adopted that way and should not be relaxed lightly. Others said the written code has not always fit Galena’s varied historic properties and that the board should have the flexibility to consider singular, site‑specific cases at later special‑use hearings.

Board members repeatedly emphasized that the amendment would not itself grant the right to operate multiple buildings as one inn; it would only permit the council to change the definition so future applicants could seek a special‑use permit. Any such permit, board members noted, would still be subject to the city’s site‑plan and special‑use criteria, including compatibility with adjoining properties, parking, life‑safety and ADA requirements.

At the meeting’s close, a motion to forward a positive recommendation to the City Council for the proposed text amendment (agenda item 25A‑01) was made, seconded and advanced by the board. The board’s recommendation sends the ordinance change to the next step of the municipal process; the City Council will consider the amendment and can accept, modify or reject it. No council action has occurred yet.

The application will return if and when the applicant seeks a special‑use permit to operate multiple buildings as a single small inn. Neighbors and business groups who testified said they will follow the City Council review and any subsequent special‑use proceeding closely.