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Salida council sets Feb. 17 public hearing for short-term rental code changes after extended debate
Summary
The Salida City Council scheduled a second reading and public hearing for Ordinance 2026-06 (short-term rental licensing rules) for Feb. 17, 2026, after an extended first‑reading debate about lifting residency requirements in the Mixed‑Use Center zone, area caps, displacement risks and affordable housing revenue.
The Salida City Council voted to set a second reading and public hearing for Ordinance 2026-06, a rewrite of the city’s short‑term rental (STR) licensing rules, for Feb. 17, 2026. The ordinance — introduced at first reading — would amend chapter 6, article 6 of the Salida Municipal Code and includes a proposed change to section 6‑6‑20G7, which governs residency requirements in the Mixed‑Use Center (MC) zone.
Council Member Papenfort moved to set the second reading and public hearing on Feb. 17, 2026; Council Member Martin seconded the motion. "I would like to move to set a second reading and public hearing for ordinance 2026-06 for February 17, 2026," Papenfort said. The motion carried by roll‑call vote.
Why it matters: council members said the residency rule in the MC zone could affect the character of newer mixed‑use projects (for example, Two Rivers Commons and the Mayfly condominium project), local investment opportunities and the city’s primary mechanism to raise revenue for an affordable housing fund. Council members asked staff for more detailed metrics before deciding whether to lift residency limits in MC areas and asked the finance committee to consider multi‑metric analyses.
What council discussed: members debated several tradeoffs. Some said allowing nonresident owners to operate STRs in MC could increase short‑term rental permit counts and boost revenue flowing into the affordable housing fund. Others warned that bringing in outside investors could increase local property values and displace long‑term renters. Council members asked staff for a broader set of metrics — not just permit counts — including localized permit and revenue projections, likely displacement indicators and vacancy-rate information for shoulder seasons.
Staff context: city planning staff described zoning differences between downtown and the MC area and noted that MC currently contains relatively few finished residential units; several units were under construction and more certificates of occupancy were expected in coming months. Staff also reminded council that the planning commission recommended the zoning adjustments now reflected in the draft ordinance.
Next steps: the council is scheduled to hear public testimony at the Feb. 17 public hearing and will take further action at that meeting. The ordinance remains at first reading until that hearing and a possible subsequent vote.
