The Dalles council directs staff to tighten short‑term rental rules, backs larger buffer and phased compliance

The Dalles City Council spent the bulk of its Oct. 14 meeting reviewing proposed changes to the municipal short‑term rental (STR) licensing code and gave staff direction to revise the draft ordinance.

Community Development Director Joshua Chandler presented the amendments as a package intended to address neighborhood concerns: a cap tied to 1% of housing inventory (a staff reference to the 2023 housing needs assessment), a lottery system for new licenses, stronger transient lodging tax compliance, a proposed 300‑foot buffer and increased notification distance, parking tied to guest rooms, annual relicensing, and new enforcement tools that can ban noncompliant operators for up to 12 months.

Why it matters: Residents from multiple neighborhoods told the council that clusters of STRs have changed neighborhood character, contributed to parking and noise issues and eroded the sense of community. Councilors said they want rules that reduce the chance of new clusters forming while minimizing legal exposure for the city.

Chandler told the council the package includes a 300‑foot proximity restriction and new notice and parking rules. "We are proposing a cap of 1% of the total housing inventory," he said, explaining how staff built the proposal to balance neighborhood concerns and legal constraints. He also described the lottery and relicensing mechanics and said the city would tighten transient lodging tax tracking and documentation for enforcement.

Residents pushed for stronger measures. Sally Carpenter said neighbors often lack the contact information needed to reach STR operators and questioned reliance on smartphone evidence for enforcement: "Not everybody has cell phones. That's insulting to a number of people who choose not to have them or maybe can't afford them," she told the council, urging clearer, resident‑friendly complaint routes.

City Attorney Jonathan Cara cautioned about legal risk for outright grandfathering but said a phased amortization could be designed to reduce property‑interest claims. "There is a path to do that," Cara said, outlining how a multi‑year activation or amortization could be structured to phase in compliance while reducing the risk of successful legal challenge.

Council direction and next steps: After extended discussion and public testimony, councilors expressed support for increasing the proposed buffer beyond 300 feet; several explicitly favored 500 feet, with some members open to a larger figure up to 1,000 feet. Councilors also asked staff to:

- Clarify the code definition of "room" so building‑code definitions limit misuse (for example, to avoid closets being counted as bedrooms); - Change the required local contact response from 24 hours to 1 hour for reported problems; - Develop an amortization or phased compliance plan (5–7 years was discussed) for existing nonconforming units to reduce litigation risk; - Return with a revised ordinance, suggested fee and notice calculations, and a proposed timeline; staff indicated the revised draft could return at the council's next meetings and recommended a six‑ to 12‑month review after implementation.

The council also discussed whether to extend the existing moratorium on new STRs to prevent additional operators from locating in clusters while the ordinance is finalized. Staff warned extending notice distances will increase administrative workload and mailing costs and may require fee adjustments to cover program administration.

The council did not adopt the ordinance at the meeting; instead it gave staff the requested direction and asked for a revised draft for future consideration.