Planning Commission

RECORD OF PROCEEDINGS OF THE PLANNING COMMISSION CITY OF BELLINGHAM, WASHINGTON Thursday 7:00 PM March 22, 2018 City Council Chambers Video Recorded www.cob.org Call to Order / Roll Call Ali Taysi (Chair); Mike Estes (Vice-Chair); Garrett O'Brien; Steve Crooks; Phyllis McKee; Lisa Anderson and Iris Maute-Gibson Approval of Minutes The minutes for March 1, 2018 and March 15, 2018 were submitted for consideration and approved by general consensus. Public Comment Period Opportunity for citizens to speak informally to the Planning Commissioners on any subject not listed on the agenda. Speakers are allowed a MAXIMUM of three (3) minutes to address the Commission. Speakers will not be required to disclose their address. No testimony given. WORK SESSION A work session to tentatively finalize a recommendation to City Council on the draft short-term rental ordinance. STAFF PRESENTATION Lisa Pool reviewed the proposed minor modifications that occurred in response to Planning Commission questions / comments, as well as some of the comments received from the public. COMMISSIONER COMMENTS / QUESTIONS There was a brief discussion about short-term rentals in the multi-residential areas of the city. Staff explained that the proposed ordinance would, in effect, make some regulations stricter in some cases and less strict in others. There was a brief discussion about the 90-day limit for Type I and Type II permits in residential areas. It was pointed out that this may be too restrictive for property owners who rent a bedroom and still remain in the home. It was also pointed out that this would keep the rentals "short term", which is the intent. Staff explained that a third-party agency would help monitor the 90 days for compliance. There was a conversation about the fees that would be associated with the applications, and staff reminded the Commission that City Council sets the fees. There was a suggestion to include language that would indicate when the ordinance should be reviewed for effectiveness. MOTION: Garrett O'Brien / Phyllis McKee moved to add language to the short-term rental ordinance recommending that City Council review the program two years from the date of adoption. VOTE: CARRIED 7-0. Staff requested Commissioner feedback on item 12d of the staff memo regarding whether Type II permits in residential areas should include both primary and non-primary residences. There was a brief discussion about the pros and cons, as well as the idea of allowing only one non-primary short-term rental per owner in residential areas. MOTION: Iris Maute-Gibson / Mike Estes moved to accept staff's minor modification regarding "12d" language, with the exception that only one non-primary short-term rental will be allowed per owner. VOTE: CARRIED 5-2. (Opposed: Anderson, O'Brien) There was a conversation encompassing the different fees being charged for existing permits that are similar to what the short-term rental application could look like. Staff explained that the fee structure would be set up to recover the costs of doing the work to process the permit, not for profit. A suggestion was made that Council consider setting fees based on a price per unit. There was concern expressed about setting a precedence by introducing the idea of progressive fees. MOTION: Iris Maute-Gibson / No Second - Motion died There was concern expressed about how the age of the renter could be enforced by the property owners. Staff stated that it is part of the rules, and the owners, the City or the monitoring system will catch those who are not compliant. MOTION: Garrett O'Brien / Phyllis McKee moved to adopt the findings of fact, conclusions and recommendations included in the March 1st staff report and forward a recommendation of approval for the draft short-term rental ordinance, including the amendments proposed through staff's minor modifications outlined in the March 22nd memo and the Commission's discussion. Commissioner Anderson spoke to the reasons that she will not be supporting the motion. She stated that she supports the Type I and Type II processes being proposed; however, she is not in favor of whole houses being on the market for short-term rentals. She explained that she would have rather the Type III-A process be introduced at a later date when the vacancy rate was at a more acceptable level. She indicated her support for some of the limitations that were included; however, availability of housing is still a very strong concern. Commissioner Crooks spoke to the reasons that he will not be supporting the motion. He stated that he would have preferred to vote on the Types separately, as he is in favor of Type I and Type II. He expressed concern over commercial businesses in residential neighborhoods that are allowed to exist indefinitely. He spoke to the public comment that has been submitted and noted that, in his opinion, none of their suggestions have been taken seriously or addressed through the ordinance. Commissioner Maute-Gibson stated that she believes many homes will be returned to the market given that several people probably own more than one home that they are using as a short-term rental. She pointed out that this ordinance will not only benefit the homeowner through the potential supplemental income, it will also benefit the City and State Tourism fund. Commissioner Estes stated this ordinance reflects the reality of our community. He pointed out the behaviors of our community are changing and this is a great compromise. Commissioner McKee noted that the Type III-A process will help to mitigate some of the neighborhood concerns. Commissioner Taysi stated that he is in support of the motion. He noted that rather than saying yes to everything, or no to everything, the Commission produced a balanced ordinance that addresses the needs of the community today. He pointed out that this work supports several of the goals outlined in the Comprehensive Plan. Commissioner O'Brien pointed out the number of short-term rentals (300) in relation to the number of homes in Bellingham (20,000) is very small. He stated the larger issue is the less than 2% vacancy rate and the fact that housing is not being developed and instead the land that could be used for development is being taken away for another purpose or left vacant. VOTE: CARRIED 5-2. (Opposed: Anderson, Crooks) Presentation Update on the approaches to unsheltered housing (tent encampments, tiny homes, shelters and safe parking). Rick Sepler briefed the Commission on the work that will be coming before them related to permanent unsheltered zoning regulations. He provided an overview of four housing options and stated that a draft ordinance would be coming before the Commission in the Spring for consideration. Old/New Business Adjournment Minutes prepared by: ____________________________________________ Heather Aven, Recording Secretary Minutes edited by Planning Commission members and various Planning Staff.