Council schedules public hearing, puts temporary pause on bed‑and‑breakfast permits while it reviews preapproved‑plan program

Planning staff presented concerns that Leavenworth's preapproved‑plan program — which streamlines permits for certain accessory units — can be used to create units that later operate as short‑term rentals, running counter to the city's affordable‑housing objectives.

"The current vector that we have works against increasing affordable housing stock in this community," the planner said, pointing to examples where discounted permitting created a path to STR use. Staff also noted ambiguity in the city's method for calculating the 4% cap on BNB permits and presented alternative counts based on assessor and census data.

Council debated options including acquiring ownership rights to preapproved plans, attaching title notices limiting short‑term use, instituting a moratorium while policy and code changes are drafted, or proposing a council policy to govern future uses. A councilmember emphasized incentives and outreach to hotels to reduce wastewater loads in parallel to housing work.

Council moved and seconded a motion to set a public hearing and a temporary moratorium on bed‑and‑breakfast conditional‑use permits. The hearing was scheduled for April 14, 2026, at 7 p.m. Staff said a moratorium would buy time to draft code changes (including revising how the 4% cap is calculated) and to investigate options for making preapproved plans subject to title restrictions or other conditions.

The motion passed; meeting minutes record one councilmember as refusing/opposing on the recorded vote. Council directed staff to return with a code‑change proposal, options for plan ownership or title restrictions, and clarifying data on housing‑stock counts.