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Committee forwards small change to short-term rental rules in downtown tax districts

Planning and Economic Development Committee · March 26, 2026
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Summary

A staff-supported text amendment would allow one unit per multifamily or mixed-use property within the city's primary/secondary tax districts to be used as a traditional short-term rental; the committee forwarded the change to City Council with a recommendation for approval.

The committee forwarded a zoning-text amendment that would allow one dwelling unit per multifamily or mixed-use property in the primary/secondary special taxation districts (the walkable downtown B-1 area) to operate as a traditional short-term rental.

Staff explained the change, proposed by Paul Richardson, is limited to primary/secondary tax districts and would continue to require proof of owner occupancy for home-shares outside those districts. "This specific amendment would ... allow for up to a maximum of 1 unit to be used as a traditional short term rental," the presenter said, noting grandfathering for existing units.

Councilors asked whether the change would prompt a flood of applications and whether condo or large mixed-use properties could exploit the rule; staff said the amendment limits STRs to one unit per building or property and suggested a first-come, first-served administrative approach. Committee members voted to forward the amendment to City Council with a recommendation for approval.