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HomeMy WebLinkAboutminutes.apz.20110816 City Planning & Zoning Meeting — Minutes — August 16, 2011 Comments 2 Conflicts of Interest 2 Miscellaneous Code Amendments — vacation rentals 2 Miscellaneous Code Amendments — impact fees & school lands dedication 10 1 City Planning & Zoning Meeting — Minutes — August 16, 2011 Stan Gibbs opened the regular meeting of the Planning & Zoning Commission in Council Chambers Meeting Room at 4:30. Jim DeFrancia, Cliff Weiss and Michael Wampler were excused. Commissioners present: Bert Myrin, LJ Erspamer, Jasmine Tygre and Stan Gibbs. Staff in attendance: Jim True, Special Counsel; Kathy Yang, Finance; Don Taylor, Finance Director; Chris Bendon, Community Development Director; Jennifer Phelan, Deputy Community Development Director; Sara Adams, Drew Alexander, Community Development; Jackie Lothian, Deputy City Clerk. Comments Jennifer Phelan noted there was a special meeting next Tuesday, August 23` for the continued hearing for Lift One Lodge. Conflicts of Interest Bert Myrin stated that he was a realtor but had no conflict on this Code Amendment. Jasmine Tygre and LJ Erspamer were also realtors. Stan Gibbs stated that he lived in the West End. CONTINUED PUBLIC HEARING (07/05/11 and 07/19/11): Miscellaneous Code Amendments — Vacation Rentals Stan Gibbs opened the continued public hearing for Miscellaneous Code Amendments, vacation rentals. Sara Adams introduced Kathy Yang from the Finance Department. Sara said Vacation Rentals were short term rentals of residential uses; they don't include hotels, lodges or timeshare lodges. Sara said that Vacation Rentals are prevalent in Aspen; if you do a Google search for the terms "Aspen luxury rentals" you get more than 7 pages of Websites that popup. VRBO (Vacation Rentals by Owner) database has over 300 properties listed for Aspen so there are a lot of properties that are out of compliance with zoning and with tax remittance. The current code defines short term rentals of residences as less than 6 months in duration. Sara said that it allows rentals in the lodge zone district, which is generally at the base of Aspen Mountain in our tourist area. Sara said all the other zone districts are restricted to 2 rentals per year so this creates some problems in issuing business licenses and also some compliance problems. Sara stated that they have had 2 work sessions with City Council to discuss the current situation and possible code amendments; there are really 3 options; amend the code to prohibit short term rentals; enforce our current code; amend the code to allow rentals or some version of that. Council has directed staff to propose amendments more along the lines of the 3` option. Sara said they have met with members of 2 City Planning & Zoning Meeting — Minutes — August 16, 2011 the community and polled the CAST (Colorado Association of Ski Towns) to determine some appropriate language that balances both the preservation of neighborhood character but minimizes the application process for Vacation Rental Owners. Sara said staff proposes a revocable permit program that allows rentals in all districts that permit residential uses. The specific standards of review proposed are summarized on page 3 of the packet and listed specifically on page 7 of the draft resolution (3 of 19). The revocable permit with the same time as a business license application, the question for the Planning & Zoning Commission tonight is not should vacation rentals pay taxes or how much is it going to cost to implement this program, the question for P &Z is about land use. The question is does P &Z recommend Council allow rentals as a permitted use throughout Aspen; does P &Z recommend a revocable permit process and review standards if you do want to open the door to allow vacation rentals in Aspen. Staff finds that vacation rentals are an asset to Aspen by contributing to a diverse lodging community or lodging inventory; planning staff feels very strongly that all properties in Aspen need to comply with the land use code and find that the proposed code amendment is consistent with the Aspen Area Community Plan as outlines in Exhibit A. Staff recommends P &Z recommend approval to Council. Sara sent out informative emails about this meeting to the Aspen Board of realtors, the lodging association and anyone who has emailed her. Sara distributed emails that she received from Scott Davidson, 2 from Johanna Payne and ABOR from Bert Myrin. Jasmine Tygre asked if taxes could be collected without changing the land use code. Sara Adams replied that we could; the issue is residences in the West End that are outside the lodging zone districts are only allowed 2 short term rentals per year that are less than 6 months; the code defines short term as less than 6 months. Jasmine said looking at vacation rentals and allowing them in every zone district as a permitted use so that there is no public hearing for a particular property like a site specific review that applies to a conditional use. Sara replied that was correct. Jasmine said that she couldn't see any limit to the number of vacation rentals that would be allowed. Sara said that was correct there was no limitation. Jasmine asked if by granting a license to an owner of a private home is there any additional liability that would attach to the City. Jim True answered that the City issues business licenses to all businesses in town and do not accept any liability associated with that. Jasmine asked if a homeowners association is applicable; who decides whether the notice is applicable or not. Sara responded that if you 3 City Planning & Zoning Meeting — Minutes — August 16, 2011 have a homeowners association then it is applicable; if you are a single family home and there is no HOA then it does not apply. LJ Erspamer said the August 2 memo said with the popular and prevalence of VRBO.com were they all non - conforming. Sara Adams replied she went through every property that was in the City of Aspen on VRBO and about 50% of those properties were out of compliance in terms of zoning and how many properties have business licenses for short term rentals. Kathy Yang replied about 75. LJ asked what action did Community Development take when you found out. Sara replied it was part of gathering information for this code amendment, so we didn't take any action other than use that information. LJ asked if anyone opposed this. Sara answered that many of the realtors in town don't feel that this is necessary. LJ asked how do you determine adequate parking. Sara replied on page 7 of the draft resolution under vacation rentals #3 Parking or under our code in the parking section to obtain a guest parking permit. LJ asked who she spoke to on this. Sara replied that she spoke with Telluride, Crested Butte, she would have to go through her notes but she tried to focus on communities that were similar to ours. Jim True said there was an IRS provision that has certain exceptions for 2 weeks rental but the code does say 2 short term rentals per year and what we were finding that people were renting for longer than 2 terms in residential areas so we were faced with the dilemma of whether they were required to have business licenses. Jim said they were receiving money for a business so we would typically require somebody in that situation to obtain a business license. Jim said they could enforce the code and try to recognize that you are not allowed to do this in this residential district or go through a process where you approve it then you can require a business license and the lodging tax. Bert Myrin said there were 150 rentals out of compliance. Sara Adams replied that was just VRBO. Kathy Yang stated that on VBRO there were 300 and 150 out of compliance and the other 150 were submitting the appropriate taxes to the City. Kathy said that about 20% said that they were going to pull their property off of VBRO because it was too much trouble to go through or they were going to do long term rental. Bert said that they could ignore the tax question because we were focused on land use. Sara replied that was correct. Bert said the outreach Section 2 talks about meetings with lodge representatives; were there meetings with homeowners that were complaining as well. Sara responded that she sent many emails to the Aspen Board of Realtors; she did not call the properties listed on VRBO. Bert said they are having a meeting without the people who might be up- zoned or neighbors. Sara replied there was notice in the newspaper and coverage in newspapers. Sara said that they exempted single family residences within the 4 City Planning & Zoning Meeting — Minutes — August 16, 2011 lodge districts from notice, the ones that were allowed to short term rent now because it is in the core area. Jim True said the West End would have to notice their neighbors but if you are multifamily you only have to go to your association. Bert said that he would like to see continuity so the notice was the same. Bert inquired about parking and trash. Jim True said there was a procedure in the code that allows a hearing officer to make certain determinations. Bert asked if carbon monoxide detectors or smoke alarms will be checked; a person is paying a fee so it is a safe place to stay. Jim replied that we are not anticipating a further building code review of a property that is applying for this; a building code requires carbon monoxide detectors; we are not trying to overlay that kind of requirement onto this procedure. Jennifer Phelan stated once you get your CO you get it for what was built and inspected; if you apply for a remodel that's where you would get your re- inspection. Bert asked about the renting of a house like they do in Europe and then rent out rooms. Kathy Yang and Sara Adams had not experienced that. Don Taylor said that was done in Breckenridge. Stan Gibbs said that staff was trying to get rid of the term "short term ". Sara replied yes, it was changed to "vacation rentals ". Stan noted on page 9 and 10 still had the old term in there. Stan asked if rentals in the West End would be required to have a business license and collect taxes. Kathy Yang said if an individual wants to short term rent they are required to have a business license and then finance signs off on it and community development also signs off on it and they can have 2 rentals a year and pay taxes. Stan asked what is unattractive in the current code. Sara stated that you were allowed 2 rentals per year, get your business license, sign a piece of paper saying I understand that I can only rent twice a year for less than six months and I will do that; there is no way to tell if people actually obey the rules. Stan wanted to know what community development didn't feel too workable. Chris Bendon replied that was fundamental with their conversation with City Council; looks like from research that they are going to have to do enforcement or code amendments. Chris said the question to Council was do you want our code to be amended to reflect what is happening or do you want what is happening out there to be pulled back and restricted for what the code allows for now. Stan asked what is different with the code amendment and trying to enforce what we have now. Sara responded the proposal includes a revocable permit that recognizes specific review standards that need to be met where right now that is not; other than a business license and pay taxes and there is no recognition of trash, parking or a local representative. Stan asked how a rental in R -6 was different if they wanted to run a restaurant. Sara answered the zoning may not be permitted in that district. Don Taylor replied the differences are the impacts to the neighborhood; if it were a restaurant there would be traffic, 5 City Planning & Zoning Meeting — Minutes — August 16, 2011 deliveries and more action than a short term residential rental which is much more compatible with the neighborhood. Jim True said under the definition of business they both required a business license. Jasmine asked about a lodging study that she read about in the paper. Jennifer replied there is a discussion from Council's retreat. Bert asked if this would allow every property in Aspen to become a bed and breakfast. Sara answered bed and breakfast is defined differently than vacation rental. Bert asked what was going to be the difference. Jennifer replied there was an onsite manager at a bed and breakfast and it more of a hotel with a cap on the number of rooms. Stan Gibbs opened the public comments portion for the public hearing. PUBLIC COMMENTS: 1. Johanna Sazian Payne, public, said that their company gets a business license and have several hundred homes that we represent but they are not a property management company. Johanna said they would be the person to contact not the property management company because sometimes it is the homeowner who is out of town. Johanna said they collect the taxes and update their taxes as the code requires and it is redundant for the homeowner to get a business license and still use them. They are already doing this and lots of the other companies that do the same. 2. Norma Dolle, public, owns the Snow Queen Bed and Breakfast and has operated it for 40 years; it is very different this year and we have paid tax. 3. Ziska Childs, public, said she owned 2 Fifth Avenue Condos and those condos were purchased by her family in 1968 and one is a long term rental but was not able to do that from 2008 because of the crash. Ziska said she went to VRBO and went to short term rentals; she had always done long term rentals. Ziska asked if they have exempted Timeshares within the downtown rental district why are you trying to change the by -laws of her condominium which allows her long and short term rental without having to notify the HOA. Ziska said she pays taxes and has a business license. Jennifer Phelan asked to respond to some of the possible misinformation. Jennifer said this will not require her to get a property manager it just requires a property representative with a contact number in case someone needs to call about an issue. Kathy Yang said if a property manager seeks rentals for 100 properties those individual owners are not required to have a business license. 6 City Planning & Zoning Meeting — Minutes — August 16, 2011 4. David Ledingham, public, said he was the manager at the Snow Queen Victorian Bed and Breakfast. David voiced concern about the impact to the lodging community and they have two condos next door that he has listed in VRBO because of the competition. David said they compete with the Timeshares as rentals and he is for enforcing some of the code or something that requires them to pay tax. 5. Mark Ronee, public, with Aspen Real Estate and the Aspen Board of Realtors, said that Sara has done a good job of contacting the Board of realtors in getting information out and making herself available to brokers and rental companies to voice their concerns. Mark said about 90% of his clients came back and said how much is this going to cost to regulate and if there are too many restrictions then maybe they won't rent their properties out. 6. Jeff Shoaf, public, thanked the staff and P &Z for the communication and handout. Jeff said that he was in favor of this because it makes a situation legal which is now quasi - illegal. Jeff asked if the county was tracking this stuff as well; is there any crossover between the city and the county. Sara replied that she received a call from Snowmass Village that they are interested in what we are doing but not from the county. 7. Jason Lasser, public, said that he knew a lot of people that were interested in this. Jason said he didn't know if the process was going to make the city the money that they want out of this. Jason asked how much is the permit fee; what is the staff time to process. 8. Tracy Sutton, owner of Aspen Signature Properties, asked for clarification issue and VRBO does need to pay taxes who rent out their home. Tracy said that many of her homes will rent for 30 days in the summer, 2 weeks at Christmas; she asked about the clarification of zoning. 9. Bill Tomsich, public, president of Stay Aspen Snowmass, said that he was in favor of the intent and concept of this. Staff reached out early in the process to him and he sees it as a win -win situation. 10. Patricia McIntyre, Aspen Luxury Rentals, said that this is a win -win as well; it is great that it will be in writing. Patricia asked as a rental agency can we pay for the permits and get them. Sara replied sure that is acting on their behalf. Stan Gibbs closed the public comments section of the meeting. Jennifer Phelan said they currently review business licenses and we are looking at zoning; she did not think it would be much more time than what they are spending on business licenses that come in now. Jennifer said there was a minimum of 6 7 City Planning & Zoning Meeting — Minutes — August 16, 2011 month rental and then you could rent 2 shorter occupancy periods. Sara said the trash requirements are met for wildlife and this would bring properties into compliance so that is why that is added in there. Stan asked if someone who rents a house with a year's lease are they required to have a business license and pay taxes. Jennifer replied no. Stan asked what was different with that and 3 weeks. Jim True said if you are renting your property you should have a business license. Kathy said that technically they should have a business license but currently it is not being enforced. Jasmine said that Sara was clear about P &Z's role of whether or not these taxes should be collected but should we amend the land use code according to what is proposed in the ordinance. Whether we should allow these vacation rentals as a permitted use in every zone district in the City and she says no. Jasmine said that you are changing the use without going through any kind of site specific review so we are getting a change in use without a change in use review and that is not fair to landowners. Jasmine said she didn't think the non - renters were really aware of the potential implications that happen under this particular ordinance; the "quote letitgitimzing it" is a bad excuse; our code defines zone district as an orderly way to put legal reliance on. LJ agreed with Jasmine; we approved a multi -unit building in a residential neighborhood recently and that isn't built yet and those people are going to start the HOA rules themselves and they are going to make this a lodge now instead of a long term rental or owned units. LJ said that in the AACP it says to preserve the environment and social quality of life and this doesn't agree with the growth management plan changes the character of the neighborhood and reduces parking. The short term rentals will have a direct competition with lodging; this tells the lodging community that we don't want any more lodging we are going to put lodging in the residential area. LJ said the parking review was vague and we need to redo it. LJ stated we need to revitalize the permanent community; this does not revitalize it just brings these homeowners some money. This ordinance is destroying the community one neighborhood at a time and he will respectfully be voting no on this. Stan said what he was hearing from both of you was that you actually want a different proposal that outlines the changes the current code. Jasmine replied that we should stay with the current code and enforce it. Stan asked how that was different. Jasmine answered because you only are allowed 2 short term rentals per year, not 20 weeks of short term rentals. Stan said can't we just change the 8 City Planning & Zoning Meeting — Minutes — August 16, 2011 number not leaving it unlimited; he would propose 3 less than 3 month rentals. Stan said the reality was already here, we really aren't changing fundamental usage because we already have the situation where you can already rent your property out. Stan said he agrees living in the West End that he agrees with the renter education because he knows numerous people just leave their trash in the alleyway and have no idea what those big brown boxes are because no one ever told them by the way there a bears here and that brown box is where you put your trash. Stan said there also have been barking dogs and the only people he knew to call were the police and he would have much preferred to call the representative for that property because it is a much more orderly to do that. Stan said it was a very small change in use and there were a lot of benefits to this; he didn't like the unlimited and would like to see it crafted more conservatively. Stan said that if we could try to come to a consensus on the number of times we may deal with all of concerns that way. Bert echoed everything that Jasmine said and part of it was the certainty when you buy a single family home in the lodge zone you would be able to rent nightly and it does not make sense to him is to extend that beyond the lodge zone to the entire town and turn the entire town into a nightly rental. Bert said he does one rental a year for 3 months and he said that he may never do it again. Bert said that he somewhat agreed with Stan because this was handed to us by 2 city councils over a couple of years; it is our role as P &Z to figure this out with every tool; maybe we can go through the resolution and point out what the problems are and he didn't think that we would have a solution tonight. Bert said on page 6 some clarity on trying to distinguish a hotel from a bed and breakfast; the intent would make him more comfortable was that everyone was on a level playing field for taxes and on page 7 under C he would delete 1 and 3. Bert said on page 8 he would delete the last sentence and he would strike the Notice because he said the notice was different for each property. Bert said D he would keep e and that was it on that section because he liked that idea and D 3 he would also eliminate. Bert supported everything in the lodge zone. Bert said the current code seems fairly generous with 2 rentals and it was an obligation to find a solution. Sara said the concern seemed to be around the super short vacation rentals; one night here turning these homes into lodges and right now it says rental less than 30 days; you can say it has to be between 7 and 30 days or some way to control that through a duration that other communities do. LJ said his problem with that it was in the code elsewhere; any rental less than 30 days has a tax. Jasmine said to limit to a 7 day rental is not going to work with the practically of the marketplace is 9 City Planning & Zoning Meeting — Minutes — August 16, 2011 now; many years ago rentals in Aspen were Saturday through Saturday; every lodge, every condominium rented that way but not anymore. Stan asked if staff had enough to make changes. Sara noted all of Bert's changes; does everyone agree with those. The commissioners replied no. Jennifer said that she almost preferred that you call the question and go onto Council and staff could make some changes. Stan asked if we left vacation rentals as defined as short term rentals for non lodge zones like 2 times a year less than 6 months and that is already in the code; how does it help the. enforcement. Sara said the proposal includes review standards that are not in the code right now and it opens up the duration issue that we keep talking about, those are the main changes. Sara said when someone comes in for a business license we go through this review process. Bert said that if you rent for less than 30 days you can't be taxed on it. Chris Bendon said the question in front of P &Z is not a tax question; this is a use question. Chris said do you want to expand the concept of short term rentals into the neighborhoods and whether you do or don't just want to keep it in the lodge zone or do you want to implement this vacation rental permit as a monitoring system that could be revoked if there was an issue and that could apply to the lodge zone and the 2 short term periods in the other zones. Chris asked do you want to expand or broaden the vacation rental into the residential zones and do you want to use this permit regime to recognize and regulate it. MOTION: Bert Myrin moved to continue the meeting on vacation rentals to August 23'", seconded by Jasmine Tygre. Approved 3 -1 (LJno) Discussion prior to the vote on continuing vacation rentals: Chris said we have continued Lift One Lodge to the 23` next Tuesday; they have concluded with the substantive discussion and at the last meeting along with the Code Amendment on impact fees. MOTION: LJErspamer moved to continue the Miscellaneous Code Amendments to August 23 seconded by Bert Myrin. All in favor, APPROVED. Adjourned at 7:05 pm. 4 J ackie Lothian, Deputy City Clerk 10