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Residents urge council to cap short-term rentals as city reviews comp plan changes
Summary
Speakers told the City of Chelan council the draft 2026 comprehensive plan appears to have removed a policy that managed short-term rentals (STRs) and urged the council to adopt a cap; city staff said an official response will be provided by the end of the week.
Annette Grandetz urged the council to cap short-term rentals, saying Chelan County adopted a 6% STR cap in September 2021 and arguing STRs are commercial uses that reduce housing inventory.
"Please cap STRs," Grandetz said, adding that the city’s draft 2026 comprehensive plan had removed language that previously committed to managing STRs to protect long-term housing.
Why it matters: Grandetz told the council that unchecked STR growth harms year-round housing and workforce availability in a small resort city that relies heavily on lodging-tax revenue. She estimated the city currently has "approximately 14%" of housing units in STR use and pointed to neighborhood examples of mixed commercial and residential development that she said undermined stable residential blocks.
City response: The presiding official said city staffer John would prepare an official response for council consideration this week and that further discussion about STR policy would be forthcoming. The presiding official emphasized the need to base any regulatory changes on data and to anticipate possible reactions in neighboring jurisdictions.
What was said: Grandetz reviewed the county cap and Chelan Municipal Code provisions and asked the council to restore the earlier comprehensive-plan policy language aimed at concentrating STR growth in visitor-accommodation zones. Another commenter, Sydney Marks, asked the council not to approve a conditional‑use permit for a proposed bed-and-breakfast on Grace Street, calling the permit proposal inconsistent with the surrounding single‑family character.
Next steps: Staff said the city will provide an official written response and that the council will continue public deliberations, including planned public hearings tied to the comprehensive-plan update. The transcript did not record a council vote or ordinance adopting an STR cap at this meeting.
Ending: Council members asked for deliberation and patience, noting the potential for unintended consequences from regulation and the need for public engagement and data-driven analysis before regulatory changes are proposed.
