Councilors spent an extended portion of their Oct. 27 meeting reviewing recommendations from a Short‑Term Rental Working Group and weighing two implementation options under consideration: a 24‑month phase‑out for nonresident operators and a grandfathering approach for existing units.

Counsel David summarized the options, saying the working group had focused on option 3 (grandfathering) but also reviewed option 2, a phase‑out allowing nonresident operators 12 or 24 months to transition. David told the council the town likely has about 150 short‑term rental units and estimated that roughly 100 might be operated by nonresident owners. “The revenues that staff is estimating could come from those 100 units is between 70 and a $100,000 a year in terms of the occupancy taxes,” he said, describing an anticipated disparity between whole‑house rentals and owner‑occupied listings.

Councilmember Leighton framed the debate around housing goals. “Do we want Princeton’s housing market to serve investors, or do we want it to serve people, families, teachers, and workers who want to call this community home?” he asked. Leighton said he supports Option 2: “The 24 month phase out remains the clearest, most enforceable and most equitable path to restoring that balance.” He warned that permanent grandfathering could create “private monopolies” that freeze inequity by giving lifetime operating rights to existing nonresident owners.

Other councilmembers raised related concerns. Councilmember Perron Lambros said she wanted a clearer breakdown of current unit types and suggested a two‑step approach where tax and registration rules could be established first while owner‑occupancy requirements be considered after more data is collected. Councilmember Newland and others asked about timing and process; the group agreed another work session and a draft ordinance review prior to formal introduction would be preferable.

Members of the working group described outreach to other municipalities and noted administrative tradeoffs. Jeff Bandy said the group had spoken with Jersey City and reviewed pros and cons for each approach. “These are the final two primary approaches to implement, or at least get the ordinance introduced,” he said.

During public comment, Dom Kanonica, a partner at a local property management firm, urged the council to hold STRs to the same safety inspection standards and lodging‑tax structure as other accommodations and said responsible hosts contribute to local businesses. He cautioned against perpetual grandfathering but said there are local hosts who depend on STR income.

Next steps: councilmembers asked staff and the working group to circulate a draft ordinance to the governing body for another detailed work session before formal introduction and public hearing. No final policy was adopted at the meeting.