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Planning commission recommends council not adopt 165-permit short-term rental cap; urges alternatives
Summary
After a legislative hearing with dozens of public commenters, the Cannon Beach Planning Commission voted to recommend that city council decline the proposed 165-unit cap on 14-day short-term rental permits and consider alternatives such as density buffers, percentage-based limits, or zoning-based exclusions.
The Cannon Beach Planning Commission on July 27 held a Type 4 legislative hearing on proposed zoning text amendments to chapter 17.84 that would cap 14-day short-term rental (STR) permits at 165. After staff presentation and more than an hour of public testimony, the commission voted to recommend that the city council not adopt the ordinance as written and instead examine alternative approaches.
Staff told the commission the city currently issues about 200 STR permits in total with roughly 155 of those being 14‑day permits; staff said a cap of 165 would represent an approximate 17.5% reduction over time as lifetime permits expire. The staff packet and addendum included a county housing-supply inventory and other materials; staff also noted recent public comments were added to the record.
Public testimony was mixed. Sandy Dawson, general manager of Beachcomber Vacation Homes and acting president of the Cannon Beach Chamber (S10), urged caution and asked that, if a cap is adopted, it be set at 200 permits to protect local jobs and businesses that rely on tourism. "If the city determines a cap is necessary, I respectfully ask that you consider setting that cap at 200 permits," Dawson said. Opponents, including Jeff Shutt (S11), argued staff materials do not demonstrate 14‑day STRs are causing documented harms and recommended a percentage-based approach and directing STR tax revenue toward workforce housing; Shutt cited staff figures that STRs generate roughly $700,000 annually in tax revenue (about $3,500 per permitted unit).
Commissioners discussed alternatives during deliberations, focusing on density and proximity buffers (100 to 150 feet) as more targeted tools, equity concerns about excluding neighborhoods east of Highway 101, and an option to convert a 14‑day limit to a "twice-a-month" allowance to reduce the number of visits while maintaining owner flexibility. Commissioner (S3) moved that the commission recommend denial of the 165-cap ordinance and instead ask council to consider other restrictions; the motion passed. The commission's recommendation is advisory; the city council will consider the ordinance and any recommendation when it takes up the matter.
