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Midway council moves to enforce illegal short‑term rentals and work on TROD licensing amid resort‑tax pressure
Summary
After a lengthy staff presentation, council directed staff to enforce unlicensed nightly rentals outside the Transient Rental Overlay District (TROD), develop a TROD‑specific business license form with bedroom and advertised capacity data, and study shrinking TROD boundaries as part of a broader zoning review to protect residential neighborhoods and preserve resort‑tax eligibility.
The Midway City Council devoted substantial time to the Transient Rental Overlay District (TROD) and short‑term rental policy after a staff presentation and public comments. Planning staff outlined the TROD’s history and map, explained how the resort zone and commercial zones intersect with the overlay, and presented unit counts and resort‑tax implications.
Michael, the planning staff member leading the presentation, said there are about 313 transient rental units within the TROD (many hotel rooms at Zermatt) and that 59 units are licensed. He reported 36 units outside the TROD that are presently illegal under city code and 61 units within residential zones. "If we did enforce all of that, we'd still be in compliance," Michael said, referring to state resort‑tax thresholds.
Staff also reported an "excess capacity" calculation based on bedroom counts: 1,110 bedrooms counted as transient capacity, equivalent to about 78 standard two‑bedroom units under the city’s reporting method. Michael warned that several developments under construction (Homestead, Amialla, Swiss Haven and the last phase of Zermatt) include multi‑bedroom rental units that could change the city’s resort‑tax calculation.
Councilors expressed strong support for a stepped approach: immediate enforcement against nightly rentals operating outside the TROD, development of a detailed business license form to capture bedroom counts and advertised capacity, and a strategic, city‑wide zoning review before making permanent boundary changes. Several members cautioned that a sudden rezoning could trigger a rush of applications seeking vesting; a moratorium or a pending‑ordinance hold was suggested as a tool while staff prepares code revisions.
Council direction included the following actions: staff should proceed with enforcement on known unlicensed units outside the TROD; staff should draft a TROD business‑license application collecting bedroom counts, advertised capacity and a local Midway contact; and staff should return with options to reduce TROD coverage as part of a comprehensive zoning review, including an analysis of impacts on resort‑tax eligibility. No ordinance was adopted at the meeting; council asked staff to prepare materials for future public hearings.
