Planning Commission backs provisional-permit requirement for vacation rentals in East Sound and Lopez Village

The San Juan County Planning Commission voted unanimously Dec. 20 to approve findings and forward recommendations to county council to change how the county regulates vacation rentals in East Sound and Lopez Village.

Planner Sofia (San Juan County Department of Community Development) told the commission the amendments would change the land-use tables so vacation rentals in the two village commercial designations require a provisional use permit rather than being allowed outright. "Without vacation rental permits, it's really difficult to keep track of how many vacation rentals... are happening," she said, adding staff received only seven certificates of compliance in East Sound village commercial and two in Lopez Village in the last year.

Commissioners concentrated discussion on how the rule would treat properties already operating as vacation rentals. Sofia said existing operations would be "legally nonconforming" and could continue to operate but that staff needs reliable evidence—such as prior certificates of compliance, receipts or other records—to verify a site's preexisting status. She said: "Anyone who has been doing it would be a legally nonconforming use and would be able to continue to do the activity." Commissioner Steve Smith and others urged the findings and subsequent recommendation to make explicit whether those existing operations must apply for permits to be counted in the system and whether one-time application fees should be waived.

County staff and the commission agreed that council retains authority over fee schedules and any fee waivers; Mark Tompkins (county staff) said the commission could recommend a waiver for council consideration. Commissioners settled language clarifying that: existing vacation rentals legally operating prior to Dec. 20, 2024, that wish to continue operating should be allowed to apply for provisional use permits that staff will accept regardless of existing cap limits, and that the commission may recommend waiving one-time application fees while still requiring annual compliance fees.

The commission approved the package of findings and recommendations by roll call (Darcy, Sheila, Serena, Steve, Gary and Chair Rick all voted yes) and closed the public hearing. The commission's recommendation will be transmitted to county council, which will hold its own public hearing and make final decisions on ordinance wording, effective dates and any fee changes.

The planning commission also asked staff to bring explicit, draft language clarifying the cutoff date for counting existing operations, verification criteria for nonconforming status, and an explanation of how permits awarded to previously unpermitted but operating rentals would be treated with respect to the county's permit cap. The council review is expected in late January or early February; any adopted ordinance would take effect according to the council's specified effective date.