Staff propose capped, lottery‑based STR licensing and a low‑barrier owner option to protect local homeowners

County staff and consultants from Economic & Planning Systems presented an STR impact study to the Board on Aug. 18 that analyzes the county inventory, fiscal effects and policy options and proposes a three‑tier licensing framework to preserve local homeowners while limiting growth.

"We are here to present this report. We would like to ... get direction from the board to bring forth an ordinance, with code amendments to reflect what's in this report," said Nicole Rebecca Stout, describing staff's requested next step. EPS reported there are 73 STR units in the unincorporated county and estimated roughly $14.3 million in bookings and related expenditures tied to those units.

Key recommendations in the report include: maintain a cap on total STRs but replace the 2017–22 historic‑use requirement with geographic caps allocated by Master Plan Area (MPA); distribute new available licenses via a lottery; create three license types — a general license (up to 120 nights), a low‑intensity owner license (type 2, up to 30 nights, lower fee) to help legacy local owners avoid displacement, and an STRR license preserving Redstone’s current, more permissive rules. The report also suggests enabling fees structured to cover program administration (example fees: $400 per unit plus $200 per bedroom for general STRs; $200 for low‑intensity owner licenses).

EPS and staff identified mitigation measures and application requirements to reduce negative impacts: proof of adequate well capacity for properties on shared wells, septic inspection records, wildfire defensible‑space compliance and a continued 'good neighbor' guide with quiet‑hours and wildlife‑safe trash rules. The consultants recommended a lodging excise tax as the preferred revenue tool (2–6% options modeled) to fund workforce housing and offset STR‑generated housing pressure; estimates applied to current bookings show potential annual revenues in the low‑hundreds of thousands to under $1 million depending on the rate chosen.

The board discussed trade‑offs — neighbors’ tolerance for new STRs, lottery mechanics, program administration and carve‑outs for employer or event housing (music school or festival accommodations). Several commissioners asked staff to return with more modeling and to consider district‑level impacts before code drafting.

What’s next: staff asked for direction to prepare ordinance language and implementation details (cap by MPA, lottery rules, application proof requirements, enforcement and fee schedules) and to bring a draft back for public hearings.