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City studying vacation rental dwellings; staff cites 120-day moratorium and about 60 approved VRDs
Summary
Staff said the city is under a 120‑day moratorium on new vacation rental dwelling (VRD) permits while it separates datasets and reviews policy options; commissioners noted roughly 60 approved VRDs of which about 45 predate an October 2018 transferability change and remain transferable.
City staff told the planning commission it is conducting research on vacation rental dwelling (VRD) policy while a 120-day moratorium on issuing new VRD permits remains in effect. Staff said one of the key analysis tasks is separating transient-occupancy-tax (TOT) revenue generated by short-term rentals from TOT that comes from hotels and other lodging.
Staff outlined potential ordinance approaches, including capping VRDs at current levels, imposing lower saturation thresholds inside overlays (for example reducing the current 30% cap in a 250-foot radius), or shrinking overlay areas that allow VRDs. Commissioner Frey said the city has "approximately 60 approved VRDs" and that "45 of those are legally permitted to continue operating as VRDs with change of ownership," referencing a code change made in October 2018. Staff added that a VRD's conditional-use permit can lapse (and be revoked) after one year of inactivity, and that code enforcement remains an avenue for addressing violations.
