After hours of testimony, Dunmir council tables proposed 7.5% short‑term rental cap

The Dunmir City Council heard more than two hours of public testimony April 2 on a Planning Commission proposal to cap short‑term rentals (STRs) at a proportional 7.5% of the city’s housing stock, but delayed a final decision until staff can provide more data and after the city secures a permanent city manager and a contracted city planner.

Planning Commissioner Michael Sanchez described the commission’s unanimous 7–0 recommendation for a proportional cap and said the city’s small housing stock means a modest number of STR permits can have outsized local effects. He noted that at the time of the commission discussion there were roughly 75–78 registered STRs and that the proposed cap would adjust upward if the city’s housing stock grows.

Public comment was lengthy and sharply divided. Teachers, local business owners and many long‑term residents urged a cap to preserve housing for families and workers. "If kids are moving and families are moving out of this town, it's crucial for the town's health that we have this cap," said Brenda Montano, a teacher at Dunmar Elementary. Several business owners and an STR manager countered that STRs support local employment, pay local transient occupancy taxes, and can make otherwise vacant or deteriorated houses economically viable to repair and maintain. Sandra Hogan, who said she manages 11 STRs in the city, said her properties generated tens of thousands of dollars in local tax revenue and supported local housecleaners and contractors.

Council members expressed mixed views. Council Member Brian said he favored a cap in principle but raised concerns that public notice of an impending cap prompted a rush of new registrations and could have pushed the total temporarily above the proposed threshold; staff confirmed registrations had risen into the low‑80s after recent permit activity. Some councilors said they want a zoning‑aware approach, transferability rules for permits on sale, and clearer counts that distinguish boutique hotels from individually operated STRs.

After debate Council Member Brian moved, and Council Member Claro seconded, a motion to table the proposal and send the matter back to the Planning Commission for further study after the city contracts a new planner and hires a permanent city manager. The motion passed on a roll call of 3–1 (Brian, Claro and Vice Mayor Sebring in favor; Mayor Lucazi opposed).

Council directed staff to return with robust data — including a clear, consistent STR inventory, distinctions between commercial lodging and owner‑operated STRs, permit transfer rules, and analysis of vacancy patterns — and to incorporate the item into the housing element and Planning Commission work once staffing is in place.