Planning Commission

CITY OF COLONIAL HEIGHTS, VIRGINIA MEETING OF THE PLANNING COMMISSION City Hall, Council Chambers, 201 James Avenue Tuesday, May 2, 2023 6:00 p.m. AGENDA I. Call to Order II. Roll Call III. Determination of Quorum IV. Approval of Minutes for April 4, 2023 meetings • April 4, 2023 Work Session meeting • April 4, 2023 Regular meeting V. Approval of Agenda VI. Hearing of Citizens Generally VII. Work Session and Action item • Staff Report of Research on Short-Term Rental Ordinances • Planning Commission Recommendation VIII. Old Business IX. New Business/Reports Reports 1. Chairman – Mr. Hartson 2. Planning and Community Development - Director – Mr. Carter 3. City Engineer or Designee –Asst. Director of Public Works – Mr. Campbell 4. Others, as necessary or appropriate a. City Manager – Mr. Smith b. City Attorney – Mr. Fisher X. Adjournment  MINUTES CITY OF COLONIAL HEIGHTS, VIRGINIA Special Meeting of the Planning Commission Tuesday, April 4, 2023 5:00 p.m. I. Call to Order The meeting was called to order at 5:00 p.m. II. Roll Call Present: Mr. Hartson Mrs. Schiff Mrs. Hamilton Mrs. Levenson-Melvin Mr. Kohan Absent: Mr. Kwiek Mr. Wade III. Determination of Quorum A quorum was determined. IV. Work Session Item City’s proposed FY2024-2028 Capital Improvements Plan (CIP) Mr. Smith made an overview presentation of the CIP saying the CIP has a total of $213.67 million in project costs that include both funded and unfunded sections. The projects proposed for funding FY24- FY 28 is $22.26 million which is slightly higher than the number indicated in the CIP document shared earlier with the Commissioners. Local match funds for Boulevard Spur of $79,901 need to be added to FY23-24 appropriations which change the overall FY23-24 funded value to $2,653,559. This will reflect some changes to the totals of certain line items in the document. Mr. Hartson asked Mr. Smith to what extent the increase in the interest rate has impacted the City’s ability to borrow. Mr. Smith said that the prevailing rate of interest would be of interest to the City if it chooses to borrow in the coming year. Mrs. Rhodes, the Director of 1 Finance shared that the agents that the City has been consulting on these matters have said that the rates should settle down in a year or two which would be the timeframe that the City might be considering for borrowing. Mr. Smith added that the City would re-evaluate the situation at the time it chooses to officially borrow. Mr. Smith presented a summary of the first-year (FY 24) projects and related costs. He said the Auxiliary City Hall parking lot project is to build an expansion of the City Hall parking. The houses that existed on 218 Highland and 211 James have been removed. The Engineering Department is working on the design of the parking area which will take a few months. He added that these parcels will come back before the Planning Commission for rezoning to RO (Residential Office) to match City Hall from its current Zoning which is RL- Low density residential. The Ridge Road Culvert Replacement project has been prioritized early in the CIP because the City has been awarded revenue-sharing funds from VDOT for a reconstruction project of a portion of the Ridge Road. The drainage culvert at Ridge Road is at the same location where the work is planned. Hence this culvert replacement needs to be done at the same time. The Boulevard at Westover was a part of the previous CIP but it is back on the current one with an increased cost estimate. The City’s share is $39,313 which could allow the City to get increased funding of $250,000 from VDOT. Mr. Flippen added that though no assurances have been obtained from VDOT on their part of the funding, it is promising that the funds would come through once the Council approves the drawings and plans. Mr. Hartson inquired if the litigation was resolved. Mr. Fisher responded that it has been resolved in concept, but the Truist Bank trust holder needs to be still satisfied. Mr. Fisher added that the City has the authority to do the work. Some of the other important projects that Mr. Smith shared are Branders Bridge right turn lane extension which shows external funding, the Lakeview Avenue modernization, Phase 1 which is going on currently, Colonial Heights High School sidewalks showing additional City match funds, Boulevard Spur Appomattox Greenway Trail, White Bank Park & Fort Clifton Asphalt Path Renovation to replace the paths in the two parks, and the Gateway Roundabout improvements is an addition to previous $50,000 City funding. The Gateway Roundabout project was discussed at the City Council retreat. The idea is to put flag poles at the center island with lights, landscape, additional stamped concrete, and a City sign which requires VDOT approval. Lastly, the CHHS fine arts renovation, the CHHS front entrance, and administration area projects of the school were also discussed. Mr. Smith shared that there are other projects in the funded section in the CIP for the later years which have to be appropriated year by year. Mr. Smith said the Stormwater transfer would be for the Total Maximum Daily Load project which needs to be done in order for the City to meet the environmental requirements to reduce the Chesapeake Bay impact. The City has been purchasing credits towards this and this year will be the last to meet the 2023 goal. The 2028 goal is not reflected in the plan currently and will have to be worked into the upcoming CIPs. Mr. Kohan asked if there were any legal implications if the City did not meet the requirements and if there was a deadline 2 by which the City needs to meet this requirement. Mr. Flippen responded that the City needs to meet sequences which are 5% by 2018 and up to 40% by 2023 and 100% by 2028. Back in 2018, the City met the requirements through street sweeping but since the strategy changed, the City switched to buying credits. He explained that the City was initially planning to invest this money in projects like stream restoration within the City. But the study showed an investment requirement of $7 million to meet the 40% target as opposed to the purchase of credits which requires an investment of $ 1.6 million. Technically it has been referred to as an unfunded mandate. Mr. Smith congratulated Mr. Flippen’s team for their efforts which have resulted in the City getting a grant of $311,000 reimbursing the City for the previous funds paid. Mr. Hartson requested Mrs. Schiff to present her ideas from the position paper to the Commissioners. Mrs. Schiff said the Post office at Pickwick is a privately-owned building of historical significance that is not kept well and suggested that the City consider purchasing the building and putting it to good use like creating additional office spaces. Since the building is located in the Historic District, grants would be available for the revitalization of the building. Mr. Hartson asked if there was currently overcrowding in the City Hall. Mr. Smith responded that the City offices could use some additional space in the building. He added that once the Health Department moves out of their current building, some of the city offices will be reallocated to reduce overcrowding in City Hall. Mr. Hartson asked the Commissioners if they saw merit in Mrs. Schiff’s proposal. The Commissioners discussed that the renovation cost would be substantial and agreed that the idea was visionary, had merit, and was worthy of consideration. The Commissioners discussed the possibilities of the project being eligible for historic tax credits. Mr. Fisher asked Mrs. Schiff what her source of information was for the property assessment value of the Post Office of $450,000 that she shared in her paper as the 2022 assessment value that he had was $196,000. Mrs. Schiff and the other Commissioners agreed that the lower assessment value was good news if the City would like to consider purchasing the property. Mrs. Schiff said she would like the idea investigated by the City. Mr. Smith suggested that the Staff have an opportunity to take a look at it and discuss it with the City Council. He added that knowing where it is located and tax credits being available, a developer may be interested in restoring the property and keeping it in its existing use and may have something attractive to bring people to it. Mrs. Schiff shared the idea of repairing and repaving Hamilton Avenue and Meridian Avenue. Mr. Hartson shared that there is an unfunded project in the CIP to pave Hamilton Avenue. Mrs. Schiff remarked that the lighting at the east end of Temple Avenue is almost non- existent. The part of Temple Avenue from Conduit Road to the bridge going to Prince George County is very dark and should be evaluated. Also, the corner of Temple Avenue and Conduit Road has a stream with old trees and bushes ruining the potential for a scenic spot. 3  This could be cleared and grass sewn on the banks of the stream. It would provide a nice view at very little cost. She also proposed the concerned department check the feasibility of a project to paint the fire hydrants to make them more visible. A copy of the position paper prepared by Mrs. Schiff is annexed as Annexure 1. Mr. Hartson asked Mr. Smith why projects #4-8 in the funded portion of the CIP do not show any money assigned to them. Mr. Smith responded that they are shown in the further out year time periods. Mr. Hartson asked Mr. Smith if the Gateway Roundabout project was approved by the Council based on the recommendation by the Planning Commission, and if it would be implemented in the next budget year. Mr. Smith responded that if it is approved then it would be implemented earlier than that. Mr. Hartson and Mr. Kohan asked if the power and water facilities are available for lighting the flag pole and watering the landscape. Mr. Skalak responded that both power and water were available in the roundabout. Mr. Hartson suggested installing a four-sided monument sign that is lit at the roundabout. Mr. Kohan asked Mr. Hoover, the Fire Chief, which one was a higher priority - the building improvement works for Stations 1 and 2 or the replacement of equipment. Mr. Hoover responded that the department has a 15-year vehicle rotation program. The department has Six EMS vehicles, four of which are usually staffed, one remains in maintenance and one is used for rotation. Currently, the top priority for the department would be EMS vehicles. He added that architecture and engineering studies are being conducted on the stations and in the future, the priority would be to make improvements to Station 1. Mr. Hartson shared that he liked the idea of having another station in the Southpark area. The Chairman and the Commissioners agreed to continue the discussions during the regular meeting at 6:00 PM. V. Adjournment Mrs. Schiff made a motion to adjourn and Mr. Kohan seconded the motion with all Commissioners in favor. The meeting was adjourned at 5:45 pm. Mitchell Hartson Joseph Carter Jr. Chairman Secretary 4 Annexure 1: Position Paper by Mrs. Schiff Pickwick Shopping Center was the only shopping area in Colonial Heights in the 1950’s and 1960’s. Our first post office was built in 1949 and remained in use until the new facility was built on the Boulevard. Since Colonial Heights does not have a true “old town” area other than Pickwick because of the nature of the Boulevard, it would only seem logical to preserve and revitalize Pickwick to recapture some of our history. It is in the Chesterfield Highlands Historic District, which was the first designated in the City, therefore, making it eligible for grant funding. Currently, the Pickwick area is lacking continuity. There is a new, modern CVS, a historic post office, updated attorney's offices, an art gallery, beauty shop, and a new party venue that is available for rentals. On the front side facing our main corridor is a blight-ridden, dark rental area that is not maintained and has no identity. Homeless people have begun using the bench in front of CVS and the alley between the front of Pickwick and the back of Pickwick as a place to sleep, etc. In the late 1990’s, the roads were paved, lighting installed, and an attempt to improve drainage, etc., was completed in hopes that merchants would open small businesses and offices making an attractive area to enhance our history. That did not work as the majority of the properties belonged to an owner who was not interested in participating. The building that housed the old post office is stately and brick with a copula on the high-pitched roof containing a potentially beautiful light, I have attached a copy of the city assessment for the post office building which indicates that it is assessed at $196,000. The property is not for sale at this time. I respectfully request that the Planning Commission make a recommendation in the Capital Improvement Projects to purchase the old post office building and appropriate additional funds for needed repair and restoration. The City could use this building to house the Voter Registration Office and provide the needed storage for all of our voting equipment or for any other City office that needs more space. It would preserve our history, provide needed space and begin a positive trend for this area to help contribute to the longtime vision of a better south end of our City. When Southpark Mall opened in 1988, the mayor formed a Beautification Committee to ensure that the Boulevard was not ignored. Awards of recognition were given to businesses along that corridor who maintained or bettered their business properties. A lighting ordinance was also adopted to require new buildings to include front lighting to match the existing lighting. My point being, we have started the process of making things better, but it seems to die on the vine so to speak. So much needs to be done to improve the property south of Temple Avenue Additionally, many have come to me about repairing and repaving Hamilton Avenue and Meridian Avenue. Both are in very bad shape. I would also recommend that these two streets be included in the paving area. The lighting at the east end of Temple Avenue is almost non-existent. The part of Temple Avenue from Conduit Road to the bridge going to Prince George County is very dark and should be evaluated. Also, the corner of Temple Avenue and Conduit Road has a stream with old trees and brush ruining the potential for a scenic spot. This could be cleared and grass sewn on the banks of the stream. It would provide a nice view at very little cost. 5 Believe it or not, many various citizens have approached me about painting the fire hydrants to make them more visible and to enhance the appearance of our community. I would also like to propose that the appropriate department director look into this request to determine if it is feasible. We also have learned that there are great things proposed for the intersection of I-95 and Temple Avenue. We thank those responsible for that project. In conclusion, as the old saying goes “one thing leads to another” if we start the cleanup and revitalization process, perhaps it will catch on and we can recapture the beauty and integrity of our community. 6  MINUTESCITY OF COLONIAL HEIGHTS Regular Meeting of the Planning Commission Tuesday, April 4, 2023 I. Call to Order The meeting was called to order at 6:05 p.m. II. Roll Call Present: Mr. Hartson Mrs. Schiff Mrs. Hamilton Mrs. Levenson-Melvin Mr. Wade (present via telephone) Mr. Kohan Absent: Mr. Kwiek III. Determination of Quorum A quorum was determined. Mr. Wade was unable to attend the meeting in person due to a personal matter as he was on a vacation in Myrtle Beach, South Carolina. Mr. Hartson called for a vote of Commissioners to allow Mr. Wade to participate virtually. All Commissioners were in favor. This is the first time in 2023 that Mr. Wade has participated remotely in a Planning Commission meeting. IV. Approval of Minutes for the March 7, 2023 meeting Mr. Kohan asked for clarification from Mr. Fisher about a reference in the March 7 minutes to a Planning Commission member serving on the Board of Zoning Appeals. Since the minutes read that the Planning Commission will select a member of the Board of Zoning Appeals (BZA) to serve on the Planning Commission if Mr. Kohan chooses to not continue as a member of the BZA, will he cease to be a member of the Planning Commission as well? Mr. Fisher confirmed that Mr. Kohan’s understanding was correct. 1  Mrs. Schiff made a motion to approve the March meeting minutes, and Mrs. Levenson- Melvin seconded the motion and all Commissioners voted to approve the minutes as written. V. Approval of Agenda The applicants with plans of development on the agenda requested the Chair to revise the agenda, and move Item No. VIII, Subdivision/ Plan of Development, before Item No. VII. Mrs. Schiff made a motion to approve the revised agenda which included putting Item No. VII behind No. VIII; and Mrs. Levenson-Melvin seconded the motion, and all Commissioners voted to approve the motion. VI. Hearing of Citizens Generally No citizens spoke. VII. Subdivision/Plan of Development A. PD 22-08 Southlake Park Pond Fill Property Owner, Roslyn Farms Corporation, requests approval of a preliminary plan of development/site plan for the development of approximately 5.30 acres of land at the intersection of South Avenue and East Roslyn Avenue. The purpose of the application is to fill portions of the existing stormwater management pond on the property to create two (2) developable lots. The property is identified as Tax Parcel 69011100003, which is zoned GB – General Business. All Planning and Zoning review comments have been addressed by the Applicant. Staff recommends that Planning Commission approve PD 22-08 subject to the application receiving final plan approval meeting all City requirements. The applicant was represented by Mr. Nicholas Walker. Mr. Kohan asked how would the stormwater drain off from the surrounding areas and streets be taken care of when the pond is filled? Mr. Walker responded that the pond is oversized and can hold the stormwater run-off even after filling as per the proposed design. The design meets the standards and specifications of the DEQ. A portion of the pond will be filled and not the entire pond. Mr. Hartson asked Mr. Walker what percentage of the existing pond would be filled up to convert as developable land. Mr. Walker responded that he would get the numbers to the Commissioners later as he did not have that information handy. Mr. Hartson also asked if the existing fountain would be removed and Mr. Walker responded that the fountain would be not be removed, however, it will be moved. Mrs. Hamilton asked Mr. Walker if there were any negative effects of the project. Mr. Walker responded that he had none to report as the design meets all the specifications and requirements of the DEQ and the Engineering Department. Mr. Wade asked Mr. Walker if there would be a retaining wall built. Mr. Walker responded that there will be no retaining wall constructed but the ground would be graded and topped with a layer of vegetation to prevent soil erosion. 2  Mrs. Schiff made a motion that the Planning Commission approve PD 22-08 subject to the application receiving final plan approval meeting all City requirements; Mrs. Levenson- Melvin seconded the motion; and all Commissioners voted to approve the motion. Approved 6-0 B. PD 23-02 Temple Avenue Storage; 801 Temple Avenue Property owners, Stallings Oil Company and Boddie-Noell Enterprises, Inc., have submitted a preliminary site plan/plan of development for a fully enclosed self-storage mini-warehouse facility, containing a total of 119,900 square feet for the use to be located on 1.89 acres. The property is identified as Tax Parcel 68035600003, which is zoned GB – General Business. Staff recommends Planning Commission approve PD 23-02 subject to the Applicant receiving final plan approval meeting all City and VDOT requirements. The Applicant was represented by Mr. Krolewski, the Engineer for the project. Mr. Hartson asked Mr. Krolewski how many parking places were provided in the proposed design, and Mr. Krolewski said 19 parking spaces. Mr. Hartson asked what interest VDOT has in this property and Mr. Krolewski said that the proximity of the property to Interstate 95 requires VDOT approvals. Mr. Kohan recollected the project being approved by the Planning Commission as well as the City Council earlier and asked why it was before the Planning Commission again for approval. Mr. Fisher clarified that the earlier approval by the Planning Commission was to allow this particular use on this property by granting a Special Use Permit. The current approval is for the Preliminary Plan of Development. Mrs. Schiff made a motion that the Planning Commission approve PD 23-02 subject to the application receiving final plan approval meeting all City and VDOT requirements, Mrs. Hamilton seconded the motion; and all Commissioners voted to approve the motion. Approved 6-0 VIII. Public Hearings A. PC RESOLUTION NO. 23-02; Ordinance Number 23-8 City’s proposed FY2024-2028 Capital Improvements Plan (CIP) Mr. Smith made a summary presentation of the CIP. He said the CIP document is a planning tool used to match anticipated major facility, equipment, infrastructure, and technological improvements with the funding available to meet those needs. To be included in the CIP, a project must meet specific criteria. A capital improvement project is defined by the City as: a) Construction and/or acquisition of new assets, including buildings, land, vehicles, equipment, or hardware/software where the costs of construction or acquisition (including 3 incidental costs) meet or exceed $50,000 for a specific project or unit and the useful life of the asset exceeds one year. b) Upgrades, improvements, or additions to existing buildings, equipment, or other assets that increase the value or greatly extend the estimated useful life of the asset where the cost of the upgrade or addition exceeds $50,000. c) Remodeling or repair of existing assets where the costs of the remodel or repair will exceed $100,000. Mr. Smith said the projects proposed for funding FY24- FY 28 is $22.26 Million which is slightly higher than the number indicated in the CIP document shared earlier with the Commissioners. Local match funds for Boulevard Spur of $79,901 need to be added to FY23-24 appropriations which change the overall FY23-24 funded value to $2,653,559. This will reflect some changes to the totals of certain line items in the document. Mr. Wade asked Mr. Smith if the exclusion of funds for the Boulevard Spur project in the initial CIP was due to an oversight or if funds are being taken from other projects to include it now. Mr. Smith clarified that the fund was shown in the initial document as a local match, but it was not reflected in the summary sheet. Mr. Hartson referred to the methane extraction system included in the CIP document on page 83 and asked if DEQ mandates methane extraction monitoring. Mr. Flippen responded in the affirmative. Mr. Hartson asked Mr. Flippen if VDOT would partially fund the project I-95 South Park Boulevard interchange of Roslyn Road. Mr. Flippen said the project is included in the CIP to see if VDOT will partner with the City. Mr. Hartson asked about the payback period for the Shepard Stadium Field Lights Replacement project which shows a reduction in energy of maintenance cost by up to 85%. Mr. Skalak responded that he would provide that information later as he did not have it with him. Mrs. Hamilton remarked that the asphalt path renovation at Fort Clifton Park and White Bank Park was great and asked if Mr. Skalak would consider adding the walkway at Flora Hill Park. She pointed out that the trail is cracked and uneven and shared pictures showing the condition of the walkway with the Commissioners. Mr. Skalak agreed and said the numbers could be worked out and considered for a future project. Mrs. Hamilton shared some project ideas that she thought were worthy of consideration. She would like the installation of Anti-Littering Signs placed strategically in the City of Colonial Heights to educate the public and be of a positive nature. She would also like to have a fine included to establish accountability if the law permits. Mrs. Hamilton said she was happy to see the inclusion of a walkway in Flora Hill Park in the CIP. 4  Mrs. Hamilton said another idea that she has been sharing a few times with the Planning Commission is the installation of security cameras in heavy throughways like the Boulevard, Ellerslie Avenue, and Temple Avenue. She shared that the City of Richmond is using cameras that can read license plates and is helping law enforcement tremendously. Mr. Smith responded that the City has received a grant of $10,000 and is procuring four license plate reading cameras that will be installed in strategic locations. The neighboring cities either have such cameras installed or are in the process of doing so. There will be a collaborative effort led by the Police Department to share data from our cameras with the neighboring cities and vice versa. Mrs. Hamilton shared that more green pockets should be established in the City in the form of small parks which would make the City more appealing and environmentally healthier. She would also like a goal-oriented tree-planting program for the City. This program will have to be overseen by an Arborist, may be part-time, as the City’s Horticulturist has limited resources. Mrs. Levenson-Melvin asked about the status of the Lakeview Dam project. Mr. Smith responded that the City has been working with the City Council on this project. A construction bid has been received and Mr. Flippen shared that the dam is licensed through the Federal Emergency Resource Commission (FERC). The City has submitted the Plans to FERC which is under review. Most of the plans are approved and construction approval should be issued soon. Once the improvements are made to the dam upon receiving the approvals, it should secure the surrounding areas and make them safe against flooding. Mr. Flippen said that the construction time projected is about four months and the work should be completed before the hurricane season in August of this year. Mrs. Levenson-Melvin asked if the City has planned to fix the damage caused to the signage “Welcome to Colonial Heights” at the Chesterfield entrance. Mr. Smith responded that a new branding logo has been developed for the City. Once the new branding has been approved by the City Council, this signage along with the one on the Prince George’s entrance would be redone using the new logo. Mr. Kohan made a motion that the Planning Commission approve PC Resolution No. 23-02 and the City’s proposed FY2024-2028 Capital Improvements Plan with an amendment suggested by the City Manager; Mrs. Schiff seconded the motion, and all Commissioners approved the motion. IX. Old Business Mrs. Levenson- Melvin shared the information sent by the Planning Department about the tax auction of the Swim Club property being scheduled for April 11, 2023, at the Colonial Heights Circuit Courthouse. Mrs. Schiff asked Mrs. Levenson-Melvin if she knew of any interested parties, to which Mrs. Schiff responded that there have been a few inquiries and that there is also a Facebook string of communications going around about the property. 5  Mr. Fisher shared that the former President of the Swim Club contacted the City Attorney’s Office inquiring about the property’s financial liability to the City. Mr. Fisher said that his office referred the former President to the attorney in charge of the foreclosure process, as he would have the updated figure. Mr. Kohan asked Mr. Fisher how much the swim club owed the City in taxes. Mr. Fisher said the amount was $30,000. Mrs. Levenson-Melvin said that at a future meeting, she would like to discuss the fees charged for food trucks in the City sponsored by non-profits. X. New Business/Reports Reports 1. Chairman – Mr. Hartson None. 2. Planning and Community Development – Designee – Mrs. Payne, Asst. Director Mrs. Payne informed the Commissioners that the Planning Department would present the research that the Staff has compiled on the Short-Term Rental Ordinance in the Planning Commission meeting in May. This meeting would be like a work session in nature. 3. City Engineer or Designee –Director of Public Works – Mr. Flippen Mr. Flippen reported that the leaf collection program for 2022-23 is complete. The City’s focus now is grass-cutting. Mr. Flippen reported that the asphalt plant in Petersburg was no longer operable. The other plant located near Chester is also going through some operational issues which is delaying the asphalt work needed in the City. The department is working with Mr. Melvin from the Purchasing Department to determine other options for plants to contract for the asphalt work. Mrs. Schiff thanked the Department for the street sweeping work. Mr. Kohan asked Mr. Flippen and Dr. Cox, Interim Superintendent of Colonial Heights Public Schools, if the school construction work was on schedule. Dr. Cox responded that the school construction work was progressing very well and was on schedule. He also invited the Commissioners for a tour of the school. 4. Others, as necessary or appropriate a. City Manager – Mr. Smith Mr. Smith gave a few updates on new businesses in the City. He mentioned that the building permits for Popeyes have been issued and “Popshelf” has opened a new store in the City. Mr. Smith updated the Commissioners on the Violet Bank Cameron Foundation grant criteria. Currently, the Foundation has some restrictions on the bond-funded 6  projects which made the project ineligible for funding. Mr. Smith said he had discussions with the new President of the Foundation who has agreed to speak with their Board to make the criteria more flexible, in which case the project may be eligible to reapply for funding. This timeline, he said will also help align with the best-suited season for construction activities based on the inputs from the architects. Mrs. Schiff asked Mr. Smith if the lot next to the Violet Bank would be made a parking lot. Mr. Smith responded that he was not sure if that is something that could be done now; however, it could be considered sometime in the future. b. City Attorney – Mr. Fisher Mr. Fisher gave an overview of the new comprehensive ordinance on tall grass, reducing the time for compliance after being given notice, simplifying the method of serving the notice of violation on property owners, and the stringent penalties. He also mentioned that the changes to the Code grant more enforcement power to regulating exterior objects inappropriately left outside. The term Clutter is being added to the new ordinance, which will give some authority to regulate objects outside which formerly would have been legal. Mrs. Hamilton asked Mr. Fisher to clarify that the new clutter ordinance would apply to objects placed anywhere in the yard that are visible to the code enforcement officers. Mr. Fisher replied that was correct. XI. Adjournment Mrs. Schiff made a motion to adjourn the meeting, Mrs. Levenson- Melvin seconded the motion, and all Commissioners voted to adjourn the meeting. The meeting was adjourned at 7:45 pm. Mitchell Hartson Joseph Carter Jr. Chairman Secretary 7  Planning Commission Short Term Rental Ordinance Research Report Request Staff requests the Planning Commission to consider Staff’s research findings on “Short Term Rentals” and recommend action for specific topics to be addressed via an ordinance amendment. Background Short Term Rentals, the renting of real property (portions thereof or in whole) for a period of less than 30 days, has become a national phenomena in the real estate market. Short Term Rentals impacts the real estate market of communities and the operations of local governments in different ways. Localities across the nation have written ordinances to address the benefits and impacts of Short Term Rentals within their community. There is no “one size fits all” ordinance that can apply, but with deliberate attention and discussion, an ordinance can be crafted to meet the needs of Colonial Heights. Recent bills introduced to the state legislature, HB1362 and HB2271, both presented legislation that would restrict the City’s ability to regulate Short Term Rentals that were “managed” by a licensed VA realtor since the City does not currently have a specific ordinance or regulation for the use. The primary objective of this task is to have an ordinance adopted by City Council to regulate Short Term Rentals. As of April 21, 2023, there are approximately 7 listings of Short Term Rentals on the Airbnb platform and 1 listing on the vrbo platform. The Department of Planning and Community Development (DP&CD) receives about 1 to 2 inquiries a month about the regulations that apply to Short Term Rentals. As a primer for discussion, a document entitled “How to Regulate Airbnb – A Guide for Local Governments” is attached. While this document is intended to persuade local governments to consider using OpenGOV software to address this issue, which is not the intent of this staff report, there are several key issues discussed within the OpenGOV document you may find educational and beneficial when considering your recommendation. Scope and Timeline for Ordinance Adoption Planning Commission’s recommendation will serve as a framework for the drafting of a governing ordinance. The discussion will not be the ordinance itself but rather serve as a recommendation for City Council to consider and ultimately direct staff to proceed. Planning Commission’s recommendation will be presented to the City Council, tentatively scheduled for June, where City Council can act on the recommendation so that Staff has clear guidance on the Short Term Rental Research Report Planning Commission May 2, 2023 Page 2 of 9 desired outcome. Upon action by Council, Staff will begin preparing the ordinance using sample ordinance language and ordinance language from other Virginia localities. Staff will collaborate with other key City agencies that may be impacted by the use, such as Police Department, Utilities, Engineering and Public Works, Finance and Commissioner of Revenue to gain their input for the ordinance. Once general consensus is reached, a draft will be forwarded to the City Attorney for review. Prior to adoption, public hearings are required to be held before the Planning Commission and City Council, which is anticipated to be held late summer. Similarities to Other Uses In many ways STRs are similar to a Hotel or a Bed and Breakfast depending on whether the host resides on the premises, the amenities provided, and the scale of the operation. However, in many ways, Short Term Rentals where the property owner resides on the premises also resembles Accessory Apartments with the exception being the duration of the stay is shorter, i.e. less than 30 consecutive days. The City’s definition of a Hotel, Bed and Breakfast and an Accessory Apartment are attached to this report (Attachment 1). Bed and Breakfast uses are allowed in the RM (by SEP), RH, and BB zoning districts. Hotels are allowed in BB and GB zoning districts. Accessory Apartments are currently allowed by City Code in all residentially zoned districts (RL, RM, RH and RO) so long as it meets certain criteria for the use. Such criteria specify the Accessory Apartment must be within the confines of the existing principal dwelling; if so, the use is allowed with zoning approval. If the Accessory Apartment is proposed to be located in an accessory structure, such as a garage, mother-in-law suite, etc., then the property owner must obtain approval from City Council in the form of a Special Exception Permit (SEP). Key Definitions and Terminology The following are keyword definitions from State Code regarding this subject matter: • “Short-term rental" means the provision of a room or space that is suitable or intended for occupancy for dwelling, sleeping, or lodging purposes, for a period of fewer than 30 consecutive days, in exchange for a charge for the occupancy. • "Operator" means the proprietor of any dwelling, lodging, or sleeping accommodations offered as a short-term rental, whether in the capacity of owner, lessee, sublessee, mortgagee in possession, licensee, or any other possessory capacity. For ease of reference, Short Term Rental may be abbreviated as “STR” within this document and presentation materials. There are generally two (2) types of STRs: (i) “hosted” and (ii) “non- hosted”. 1. “hosted” STR - A hosted STR is one where the homeowner resides on the premises during its operation as an STR 2. “non-hosted STR” - A non-hosted STR is a dwelling that is not occupied by the owner when rented to users. Typically these are managed by an off-site owner. Short Term Rental Research Report Planning Commission May 2, 2023 Page 3 of 9 Other localities use different terms for a “hosted” STR (such as homestays, home sharing, etc.) to distinguish the difference between a “hosted” or “non-hosted” STR. These terms apply to “hosted” STRs to distinguish the difference between the two types of operations and to emphasize the expectation that the owner must reside on the premises for the type of short term rental. Key State Code Provisions Chapter 15.2-983 of State Code outlines some key provisions on what jurisdictions can specifically regulate for Short Term Rentals outside of the normal land use and zoning regulations; below are some key summary points: • The locality is allowed to create a required registry of short-term rentals (STR). • The locality can charge a fee to be on the registry. • If an STR is not on the registry, a locality can charge a penalty of $500 to the operator of the non-registered STR. • If the operator continues to use the non-registered STR, the locality can prohibit that property for STR (at least 3x violations). • A real estate agent (and others) who operates an STR doesn’t have to sign up for the registry. • The authority for short-term rental is through general land use and zoning. • This section does not supersede or limit agreements or contracts (ex. Agreements pursuant to the Va. Condo Act, HOA’s) Several other Chapters of State Code address the appropriate means to tax STRs that include §58.1-3510.4., §58.1-3510.6., and §58.1-605. A locality is authorized to adopt regulations regarding the processing and approval of the use in accordance with the authority to enact zoning provisions of State Code. Key Benefits from STRs Below are some of the most common benefits cited by proponents of STRs: • Supplemental income for homeowners who host • Supplemental income can help make homeownership more affordable • Generates additional tax revenue from transiency taxes • Provides a different type of lodging from typical hotels that can meet different demands/needs • Additional lodging can encourage tourism of the City and region • Can serve to attract future residents if visitors enjoy their stay Key Impacts from STRs Below are some of the most common impacts presented by the community regarding STRs and a few questions to consider: • Parking for the use o is there enough off-street parking or will it rely on on-street parking? o Is there sufficient on-street parking? Short Term Rental Research Report Planning Commission May 2, 2023 Page 4 of 9 • Parties in residential neighborhoods o If unruly how do neighbors and police address with a non-resident owner? • Allowing non-hosted units spurs investors to acquire residential properties in neighborhoods and operate as a commercial revenue generating use, which can lead to a reduction of affordable housing for owner residents. • Competition for non-hosted units can lead to bidding wars that can price out owner residents due to an increase in prices in comparison quotes for nearby dwellings. • Excessive occupancy that may exceed safety ratings for structures intended for residential use. • Change in demand for City services, such as police patrols, garbage disposal and recycling services, water and sewer usage o City Code requires the City to provide waste management services (§244-13 (A) The attached Discussion Outline (Attachment 2) is intended to help facilitate feedback on many of these key issues. Key Points to Remember Adding the STR use does not exempt the use from other City requirements. The property will remain subject to all City Codes and quality of life ordinances that apply to the property: • Building Code • Tall Grass Ordinance • Property Maintenance Code • Exterior Storage and Clutter • Zoning Ordinance Ordinance • Noise Ordinance Trends and Oddities Among Other Jurisdictions Staff researched several localities and ordinances with a focus on Virginia localities due to the Dillon Rule that applies to Virginia jurisdictions. Staff researched the City of Charlottesville, City of Virginia Beach, City of Williamsburg, City of Richmond, City of Norfolk, City of Hopewell, Chesterfield County, Henrico County, York County, and Fairfax County. The following are a few common observations from the localities researched: • All localities require written consent from the property owner in some form (via letter, signature on permit application, etc.). • Many localities allow STRs in neighborhoods where the property owner resides at the STR (“hosted STR”). • Many localities allow hosted STRs by an administrative process (home occupation permit, zoning permit, short term rental application, etc.). • All localities impose taxes on the use. • All localities require some sort of zoning approval that must be obtained prior to operation regardless of hosting status. • All localities enforce penalties for not obtaining approval for an STR or for repeated violations of Code of Conditions of Approval (includes prohibition to operate as an STR). Short Term Rental Research Report Planning Commission May 2, 2023 Page 5 of 9 • Not all of localities mention the use of a registry or a registry fee (this may be because of the exemption for licensed realtors). However, many localities do charge an annual fee for the STR use. o Either by registry or by annual permit. • For localities that allow non-resident STRs, many require the equivalent of a Special Exception Permit and contact information for the operator/authorized agent for the STR to be provided to the locality. In addition to the trends, there were a few localities with unique regulations: • Fairfax restricts activities allowed onsite by STRs and restricts types of structures allowed to be STRs. o Link to Fairfax County STR webpage • VA Beach requires the equivalent of a Special Exception Permit for all non-hosted STRs and limits the neighborhoods allowed to have STRs. VA Beach has taken several legislative actions recently to include banning all new STRs in July 2021 except when 75% of the neighborhood supports the property to be a STR (excluding the Sandbridge neighborhood). Then in Sept. 2021, VA Beach City Council adopted new safety regulations that allowed the Oceanfront Resort District to have STRs with the approval of the equivalent of a Special Exception Permit. VA Beach’s regulations were spurred by safety concerns involving a collapsing deck and unruly parties. o Link to VA Beach STR webpage o July 2021 media report o Sept. 2021 media report • Williamsburg limits STRs to only single-family detached homes with approval of a SEP, limits the area of the home allowed to operate as an STR, and limits the occupancy for the STR. o Link to Williamsburg STR webpage • York County considers Short-Term Rentals as either Tourist homes or Bed-and-Breakfast Inns (B&Bs). B&Bs require the owner to reside on the premises and provide breakfast. Colonial Heights does not require breakfast to be provided for a Bed-and-Breakfast. The equivalent of a Special Exception Permit is required for all non-hosted STRs. o Link to York County STR Webpage Staff Recommendations Staff’s research revealed a few consistencies between the many different localities that Staff recommends be implemented within the ordinance. Staff recommends Planning Commission recommend to City Council a requirement for the following: • Written permission from property owner for property to operate as a Short-term Rental • Zoning approval prior to operation of the STR; • An inspection of the premises prior to operation; • Tax collection for the use; and • Penalties for non-compliance with City Code. Short Term Rental Research Report Planning Commission May 2, 2023 Page 6 of 9 Key Issues to Discuss The following are key issues Staff is seeking Planning Commission feedback and recommendation to City Council. Staff has prepared at Discussion Outline for ease of reference and discussion as Attachment 2: • Should the City distinguish between a homeowner operating a STR and living onsite? o If so, how should that use being allowed? ▪ Should it be an administrative process with certain requirements to meet? ▪ Or should it be a Special Exception Permit that requires public hearings, Planning Commission review and recommendation followed by City Council action for approval? ▪ If you have specific issues, please identify those so that Staff can research appropriate safeguards with any recommendation. o If not, how should the use be allowed? ▪ Should it be an administrative process with certain requirements to meet? ▪ Or Should it be a Special Exception Permit that requires public hearings, Planning Commission review and recommendation followed by City Council action? ▪ If you have specific issues, please identify those so that Staff can research appropriate safeguards with any recommendation. • Should there be a limit on how many STRs are allowed within a specific residential neighborhood? • Should there be an inspection process prior to approval? • Any Planning Commission concerns with the proximity of STRs to other uses? • Should advertising signage be allowed for STRs? • Should there be a limit to the number of guests? • Should there be regulations for pets with guests? • Should STRs be allowed in commercially zoned districts? Draft Motion Below is a draft motion for the Planning Commission consider for Recommendation: • I move that the Planning Commission adopt a resolution recommending City Council amend the Zoning Ordinance Chapter 286 of City Code that will define the use known as Short Term Rental, and establish regulations that govern the operation of said use with the following recommendations: [proceed to list recommendations previously discussed]. Attachments: 1. City Code Definitions of Similar Uses 2. Discussion Outline for PC Recommendation 3. Document: How to Regulate Airbnb – A Guide for Local Government produced by OpenGOV Short Term Rental Research Report Planning Commission May 2, 2023 Page 7 of 9 Links The following are links to webpages regarding the STR discussion: LIS > Bill Tracking > HB2271 > 2023 session (virginia.gov) LIS > Bill Tracking > HB1362 > 2023 session (virginia.gov) Fairfax County STR webpage VA Beach STR webpage Williamsburg STR webpage York County STR Webpage City of Norfolk STR Webpage Henrico County STR Webpage City of Charlottesville STR Webpage Short Term Rental Research Report Planning Commission May 2, 2023 Page 8 of 9 Attachment 1 - City Code Definitions of Similar Uses COMMERCIAL USE TYPES: §286-202.10: HOTEL/MOTEL/MOTOR LODGE: A building or group of attached or detached buildings containing lodging units available for rental or lease to transients for periods of less than 30 consecutive days. Such uses generally provide additional services such as daily maid service, restaurants, meeting rooms, and/or recreation facilities. Allowed in ZONING DISTRICTS: Boulevard Business (BB), General Business (GB) §286-518.18 PARKING FOR Hotel/motel/motor lodge: 1 space per guest room plus 1 space per employee, plus spaces as may be required for other uses on site §286-202.10: BED AND BREAKFAST A dwelling, occupied by the owner, in which not more than five bedrooms are provided for overnight guests for compensation, on daily or weekly basis, with or without meals. Allowed in ZONING DISTRICTS: Residential Medium Density (RM) by SEP, Residential High Density (RH) §286-410.24 Bed-and-breakfast. (1) The owner or owner's family shall reside on the same parcel occupied by the bed-and- breakfast establishment. (2) No more than five guest sleeping rooms shall be utilized for a bed-and-breakfast establishment. The maximum number of guest occupants shall not exceed 16 guests. These limits may be exceeded provided a special exception permit is approved by City Council. (3) Any building erected, enlarged, or modified to accommodate a bed-and-breakfast shall maintain the appearance of a single-family residence. (4) Guests may stay no more than 30 consecutive nights in any one calendar year. (5) Meals shall be provided only to overnight guests and no cooking shall be permitted in guest rooms. (6) Required parking areas for guests and employees shall be provided on-site. §286-518.18 Minimum Parking required. Bed-and-breakfast 1 space per sleeping room available for guests RESIDENTIAL USE TYPES: § 286-202.04 ACCESSORY APARTMENT A second dwelling unit within a detached single-family dwelling or within an accessory structure on the same lot as the detached single-family dwelling, which is clearly incidental and subordinate to the main dwelling unit. Short Term Rental Research Report Planning Commission May 2, 2023 Page 9 of 9 § 286-404.04 Accessory apartments. A. Intent. Accessory apartments afford an opportunity for the development of small dwelling units designed to meet the housing needs of single persons, persons with fixed or limited income, and/or extended families who live or desire to live with a degree of privacy and independence. Accessory apartments provide a degree of flexibility for home owners with changing economic conditions and/or family structure, while providing a reasonable degree of protection for existing property values and neighborhood character. B. General standards. (1) Adequate parking, as determined by the Administrator, shall be provided. C. Additional standards in the RL, RM and RH Districts. (1) An accessory apartment shall only be considered as an accessory use to a detached single- family dwelling and no accessory apartment shall be located in any structure other than the principal structure on the lot, unless a special exception permit is approved for the accessory apartment. (2) Only one accessory apartment shall be allowed on any one lot or parcel, and the owner of the property shall reside on the premises, and only members of the owner's family shall reside in the accessory apartment. (3) No new exterior entrances to an accessory apartment within a detached single-family dwelling shall be allowed. Access to the accessory apartment must be through an existing exterior entrance. (4) Upon completion of the construction, the accessory apartment shall not contain more than 50% of the finished floor area of the principal dwelling unit located on the same lot, but in no case shall the accessory apartment exceed 1,000 square feet. D. Additional standards in the RO District. (1) The accessory apartment shall be allowed only in the same structure as, and in conjunction with, an associated civic, office or commercial use type. (2) The civic, office or commercial use type must occupy at least 50% of the gross floor area of the structure. Attachment 2 – Discussion Outline Q. Questions that need PC feedback to draft a STR ordinance. Responses No. Yes No 1 Should the City distinguish between a homeowner operating a STR and living onsite? 1A If YES, how should that use being allowed? i Should it be an administrative process with certain requirements to meet? Or should it be a Special Exception Permit that requires ii public hearings, Planning Commission review and recommendation followed by City Council action for approval? iii If you have specific issues, please identify those so that Staff can research appropriate safeguards with any recommendation. 1B If NO, how should the use be allowed? i Should it be an administrative process with certain requirements to meet? Or Should it be a Special Exception Permit that requires ii public hearings, Planning Commission review and recommendation followed by City Council action? iii If you have specific issues, please identify those so that Staff can research appropriate safeguards with any recommendation. 2 Should there be a limit on how many STRs are allowed within a specific residential neighborhood? 3 Should there be an inspection process prior to approval? 4 Any Planning Commission concerns with the proximity of STRs to other uses? Attachment 2 – Discussion Outline 5 Should advertising signage be allowed for STRs? 6 Should there be a limit to the number of guests? 7 Should there be regulations for pets with guests? 8 Do you have any concerns of proximity of STRs to other uses? 5 STEPS TO Effective Short-Term Rental Regulation A Simple Guide on Balancing the Interests and Well-being of Diverse Stakeholders Reserved! Introduction With the rise of Airbnb and other online rental platforms, short-term rental regulation has become an evolving and complex area for local governments. While some may think it’s only an issue in larger cities or tourist destinations, there are over 2,700 U.S. cities and counties with more than 50 short-term rental (STR) listings.* It’s a divisive issue for many communities, with clear arguments for both the benefits and costs of allowing more STRs. While some celebrate the additional income for residents and a boon to the local economy, others fear the degradation of their neighborhoods and lack of affordable housing. 5 Steps to Effective Short-Term Rental Regulation 2  Local government responses have ranged from no regulation to completely banning STRs. However, most communities have not yet figured out the best way to approach the issue. In a survey of 800 local government officials, only a quarter had rules in place, 53% stated having no rules, 16% were actively adopting new rules, and 6% were unsure. Where Are Local Governments on Short-Term Rental Regulation Have Regulation Have No Regulation Actively Adopting Regulation Unsure 0% 15% 30% 45% 60% Source: Jeffrey B. Goodman and Host Compliance, Survey of Local Governments presented in “Webinar: The Best Practice Guide to Crafting a Short-Term Rental Ordinance/Bylaw” If you are looking to develop and implement effective short-term rental regulation in your community, here is where to start. *All cited statistics taken from Host Compliance and Jeffrey B. Goodman‘s presentation in:“Webinar: The Best Practice Guide to Crafting a Short-Term Rental Ordinance/Bylaw. Hosted by: iCompass 5 Steps to Effective Short-Term Rental Regulation 3 STEP #1 Research Before making decisions, you need to understand the context for your regulation. While easy to overlook, comprehensive research will be the foundation for successful short-term rental regulation. Local Context Begin the research process by getting a sense of the short-term rental market in your area. Here are questions to consider while conducting this research: ? How many listings are there in your community? ? Where are current listings located? Where are the areas of concentration, if any? ? Where are the most bookings happening? ? What type, size, and occupancy levels of housing are offered? ? What are the range and average listing prices? 5 Steps to Effective Short-Term Rental Regulation 4 STEP #1 The website insideairbnb.com is a helpful resource for up-to-date data on current listings in larger cities. Smaller communities can gather data directly from airbnb.com and other online rental platforms. It’s also important to look at the local context indirectly related to short-term rental regulation. ? What is the picture of housing availability and affordability in your community? ? What are the other existing lodging options? ? How are socioeconomic demographics spread throughout the city? Once you have a landscape of the STR market and pertinent local factors, you can start diving into other research areas. Map of current Airbnb listings in Seattle - insideairbnb.com 5 Steps to Effective Short-Term Rental Regulation 5 STEP #1 Qualitative Data As any local government official knows, research gets more complicated when you start gathering data from local stakeholders. Creating effective policy for a controversial issue like short-term rentals means managing this complexity, and ultimately coming out with a better understanding of your community’s values. Start by identifying the stakeholders: ? Who is concerned about the issue? ? Who might not know what’s going on, but be inadvertently affected? ? What are their motivations? What are their fears? 5 Steps to Effective Short-Term Rental Regulation 6 STEP #1 Public comment forums will help get a pulse on residents’ opinions. But frame the issue around planning objectives. When you make STRs a yes or no issue—are you for or against them?—it’s too easy for stakeholders to hold opinions without considering compromise or community goals. After you’ve identified relevant stakeholders, get a baseline on each group’s motivations and fears. ? How are they currently affected by short-term rentals? ? What are they most concerned about— housing availability, neighborhood preservation, economic development? Discussions will evolve throughout the regulation process, so initial conversations do not need to cover every concern. You will return to do a deeper stakeholder analysis after the initial research phase. 5 Steps to Effective Short-Term Rental Regulation 7 STEP #1 Policy Research Do your due diligence on existing STR, bed and breakfast (B&B), and motel laws in your municipality. It’s likely that at least some of the laws are outdated, and you’d be surprised at what you might find. As an example, one city had banned B&B’s from serving breakfast due to the influence of a “brunch lobby”. Look at the state level as well. There are currently 10-15 states that regulate hotels and/or STRs. This changes the value for cities looking to invest in creating and enforcing new policies. If the money collected from fees and permits goes back to the state, it might not be worth the investment at a local level. Additionally, some states have said municipalities cannot regulate STRs based on certain criteria (e.g. length of stay), and many states are changing laws rapidly, so keep up-to-date. Lastly, in doing policy research, look beyond your local neighbors and your state. How are communities of similar Amsterdam, size (or other important factors) around the country and one of Airbnb’s closest around the world effectively addressing Airbnb regulation? partners, is currently discussing major reforms to their short-term rental regulations, trying to balance tourism and housing availability for residents. 5 Steps to Effective Short-Term Rental Regulation 8 STEP #1 Enforcement Capabilities Your policies will largely be shaped by what you can enforce. Take this into account early in the process, before you start publicly proposing things you don’t have the capacity to enforce. Consider these questions: ? What types of regulations do we have the ability to enforce with our current resources? ? What are we willing to spend on new resources? ? What kind of regulatory environment do we want to impose on our community? ? What is the input from those who would be responsible for enforcing new laws? Are you thinking of requiring every rental unit to get an inspection with only one part-time inspector on staff? Is the police department willing to enforce a policy prohibiting excessive noise after a certain hour? 5 Steps to Effective Short-Term Rental Regulation 9 STEP #1 Access to data can also limit certain types of regulation. For example, San Francisco has outlawed STRs being rented more than 90 days of the year. This type of policy would be hard to enforce without reliable access to booking data. On top of your government’s enforcement capabilities, consider what kind of environment you want to create in your community. ? How will residents feel if the police begin making extra rounds in residential areas? ? Will additional inspections be invasive to surrounding residents? Considering these scenarios will help you know what kinds of regulation options are realistic to bring to the table. 5 Steps to Effective Short-Term Rental Regulation 10 STEP #2 Framing the Issue Framing the issue for productive discussion is key to managing diverse opinions and producing successful compromises. Stakeholder Analysis Public opinion matters, but so does the input of elected officials, relevant government departments, and local businesses. Think about which government departments/ responsibilities will be affected by new regulations (e.g. code enforcement, planning and zoning, permitting and licensing, finance, tax collection, police department, etc.). 5 Steps to Effective Short-Term Rental Regulation 11 STEP #2 Here are some basic questions to get you started: ? How will an increase in STRs affect each government department? ? Will any departments need new resources? Can the cost of new resources be covered by estimated increases in permitting and licensing fees? ? How many residents are actively concerned about the issue? ? Where do their fears and motivations overlap? ? Which businesses are for and against more STRs? How would an increase or decrease affect them? ? Where are areas of centralized commerce, entertainment, and tourism? How do we want STRs to affect their development? Once you can map out the motivations, fears, and priorities for each interest group, you can move forward with the process. Understanding how policy changes may affect stakeholders and anticipating their reactions will help you judge the externalities of new regulation. More importantly, community voices will inform which planning objectives you choose to prioritize with short-term rental regulation. 5 Steps to Effective Short-Term Rental Regulation 12 STEP #2 Messaging A stakeholder analysis will also help you come up with effective messaging, so people aren’t surprised by new policy proposals. Remember to frame the issue beyond a simple yes or no. Most communities will not impose full bans nor leave STRs unregulated, there will likely be a solution somewhere in between. Making sure stakeholders know they must be open to compromise will make discussion more productive. Here are some foundational questions to help frame the issue: ? What problems are STRs actively causing in our community? ? What do we love and want to preserve about our community? ? How can STRs help us support our goals? ? How can policies address these issues and support these goals? Allow anecdotes in public comment, but remain aware of biases. Most importantly, look for underlying patterns and the root causes of stakeholders’ concerns. 5 Steps to Effective Short-Term Rental Regulation 13 STEP #3 Defining Planning Objectives Some people will never compromise, and you must move past those voices to produce viable policies. The result of research and stakeholder analysis is a clear set of priorities to inform your planning objectives and therein your policy tactics. Context and Values Community context and values will vary. For some, housing availability is a main concern, while for others it may be neighborhood preservation and safety. It’s important to communicate clearly about how you came to prioritize certain planning objectives, avoiding confusion and frustration with the process moving forward. The table on page 16 shows a list of common STR policy objectives and corresponding regulation tactics. 5 Steps to Effective Short-Term Rental Regulation 14 STEP #3 Enforcement Capabilities Remember that the ability to enforce a policy is the litmus test for what is realistic. Always ask yourself: ? Can you enforce it legally and physically? ? Would it cause undue burden on the government’s resources? Use local context and community values to decide on planning objectives, and then check corresponding policy measures against enforcement capabilities. This will give you a tailored, realistic set of policy measures specific to your community. 5 Steps to Effective Short-Term Rental Regulation 15 STEP #3 Best Practices for Addressing Common Planning Objectives These best practices were developed from Jeffrey B. Goodman’s and Host Compliance’s research on STR regulations in municipalities across the country. They are a good starting point, but no one knows the unique context of your community like you do. Don’t be afraid to brainstorm creative policies that might work better in your area. Common STR Policy Objectives Best Regulatory Practices · Only allow permanent residents to operate STRs Housing Availability · Disallow rentals in subsidized housing · Set neighborhood quotas Neighborhood Preservation · Ban signs · Require adequate parking and garbage disposal Protecting Quality of Life · Require hosts to post noise ordinance · Require a local contact person Economic Development · Encourage hosting in certain areas and time frames Safety · Require physical safety and habitability inspections 5 Steps to Effective Short-Term Rental Regulation 16 STEP #4 Ordinance Drafting Once you’ve done the research and prep work, it’s time to dig into the details. Planning discussions might happen in broader strokes, while ordinance drafting requires final decisions and precise language. This is a good time to refer back to the laws already on the books, as well as example Airbnb policies from other municipalities you’ve gathered in your research. 5 Steps to Effective Short-Term Rental Regulation 17 STEP #4 Short-term Rental Definition You will need to specifically define short-term rentals beyond a “unit rented for less than 30 or 14 days.” In addition to length of stays, the definition should speak to: ? Who is allowed to host (this can have significant implications for planning objectives)? Owners, renters, management companies, etc. ? What types of units are allowed to be STRs (consider safety implications)? Homes, bedrooms, accessory units, yards, etc. ? What type of insurance is required for a STR property (this is to protect both the municipality and host)? Effective short-term rental regulation is grounded in a clear definition. You want to avoid future questions in the enforcement process over whether something qualifies as a STR. If you are going to change your existing definition, take into account how current Airbnb listings rental operations might change in status (e.g. will Airbnb listings be subject to the same range from full houses regulations as traditional B&Bs?). to “camping in the backyard.” 5 Steps to Effective Short-Term Rental Regulation 18 STEP #4 Land Use and Zoning Use your STR land use and zoning policies to target your top planning objectives, like housing availability or economic development. For instance, if you want to preserve long- term housing options in certain areas, you can control density levels (i.e. only so many listings allowed in this area) or create buffers around units (i.e. no units within x distance of each other). Neighborhoods with a tight rental market may require harsher controls. You also need to consider how to balance traditional lodging options with STRs. ? Should STRs populate the same areas as traditional lodging options? How will this affect businesses in those areas? ? How “commercial” does an STR have to be to reside in a commercial zone? Should STRs be allowed in residential areas? ? Should different types of STRs be zoned differently? Prioritizing certain objectives means accepting tradeoffs. Ashland, Oregon prioritized neighborhood preservation in their Airbnb regulation, so they decided to keep all STRs near busy streets to avoid bothering residents. This might have the added effect of boosting the economy for local businesses. However it also precludes many homeowners from being able to earn extra income through online rental platforms. 5 Steps to Effective Short-Term Rental Regulation 19 STEP #4 Unit Characteristics Requiring units to have certain characteristics is not necessary, but it can help divert unwanted behaviors. Imposing bedroom/ occupancy limits and providing adequate trash and parking can help prevent large groups and parties from disturbing neighbors. Building, safety, and ADA codes help ensure listings are in legal compliance and in accordance with insurance policies. Remember that including specific unit characteristics will require additional inspections. Permit fees can also help create the right balance of supply and demand for different types of units. Portland, Oregon requires different permits for rentals depending on the number of bedrooms (above 3 bedrooms is $3,000, and units with more than 5 bedrooms are not allowed). Scaling permit fees also helps the city collect revenue proportionate to the amount earned by hosts’ listing prices. 5 Steps to Effective Short-Term Rental Regulation 20 STEP #4 Host Operation Some communities impose host operation regulations to keep hosts accountable and to keep neighbors apprised of STRs in their area. Examples of this include: Requiring hosts to notify neighbors and allow a certain time period for neighbor input before booking a listing Requiring a host contact person to be available in case of emergency Requiring a host contact person might affect who and how hosts are able to operate their STRs. If the contact has to be within a specific range of the listing, it might prevent homeowners from renting their houses while on vacation. Alternatively, the policy might specify that the host contact could be someone other than the property owner (e.g. a relative or property manager), allowing hosts more flexibility around units (i.e. no units within x distance of each other). Neighborhoods with a tight rental market may require harsher controls. 5 Steps to Effective Short-Term Rental Regulation 21 STEP #4 Guest Requirements Many communities also include guest requirements in Airbnb regulation, especially in residential areas. Common areas to address include: Noise limits Pools & Spas (time restrictions for usage) Traffic limits Guest registration Guests may also need to know community-specific information. For example, in one small Florida beach town, leaving the lights on at night is confusing for baby sea turtles looking for the ocean. So, short-term rental owners need to inform guests about lighting at night. While this is a rare example, many communities will have unique considerations for new guests. 5 Steps to Effective Short-Term Rental Regulation 22 STEP #4 Permitting Process Permitting is one of your most powerful tools in implementing effective short-term rental regulation and collecting revenue for your government. If you do not currently require permits or licenses for STRs, writing this part of your policy will probably be the most time- consuming. Incorporate feedback from government departments that will be involved in the permitting process, and remain realistic about your processing capabilities. Ask these questions: ? Will short-term rentals rentals require a permit, license, or both? ? What are the main categories of STRs in your community (e.g. single homeowners, commercial properties, full-time vs. part-time listings)? Will these require different permits or licenses? ? Do you want to affect the supply and demand for STRs in the area? Is permitting the appropriate way to accomplish this goal? ? What is the range of listing prices, and how does that correspond with the way current lodging options are being taxed? Do you want to use flat or percentage fees? ? How easy are your permit applications to navigate and do you have the software to allow people to apply and pay online? ? Are you willing to invest in new permitting technology to increase your processing capacity? 5 Steps to Effective Short-Term Rental Regulation 23 STEP #4 Always consider the capacities of your permit office and staff before including permit requirements that will inundate them with more applications than they can handle. Maybe some use types will require permits, while others will be exempt or have lower fees. For example, listings with bookings over a certain number of days per year may require a license, while occasional hosts only need a permit. Some communities may decide to affect supply and demand by distributing a limited amount of STR permits. If you take this route, consider which types and listing locations will be willing to pay higher permitting and licensing fees. Always remember to refer back to your planning objectives as your guide. 5 Steps to Effective Short-Term Rental Regulation 24 STEP #4 Enforcement Process Short-term rental regulation should include clear, actionable consequences to listing violations. This might involve imposing fees and suspending or rescinding permits. Violation fees should be proportionate to the amount charged on average listings in the area—if hosts are making $1,000/night they will not be discouraged by a $50 fee. Think carefully about what consequences are appropriate for what kind of violations, and how consequences might affect the supply and demand of STRs in the long-term. See the table below for example violations and corresponding consequences. 5 Steps to Effective Short-Term Rental Regulation 25 STEP #4 Short-Term Rental Violation Examples Violation Consequences 2+ Noise complaints $50 fine Failure to provide host contact $75 fine Improper insurance policy $200 fine 3+ Violations Permit suspension (6 months) 5+ Violations Permit revocation Make sure you have an accessible violation reporting process. Maybe this means creating a specific hotline or email address and advertising it on your website and social media. The ordinance—particularly violation consequences—should be clearly accessible for all hosts and residents, so everyone knows what the rules are. Creating a digestible regulation guide for hosts will save you headaches down the road. There are countless contextual factors that will inform the right enforcement process for your community. As with all regulatory aspects, if you have having trouble deciding the right course of action on a topic, use your planning objectives and enforcement capabilities to guide you. 5 Steps to Effective Short-Term Rental Regulation 26 STEP #5 Incorporate Feedback With any new policy, you will probably need to make adjustments as you see it play out in real time. Provide channels for feedback from the stakeholders in your research. Additionally, some community members might have been unaware of early discussions, but have important input now that short-term rental regulation is directly affecting them. Similarly, you can guess how the influx of permit and license applications will affect your departments, but you won’t really know until they start coming in. Continuous lines of communication will help you know if you need additional resources (e.g. more staff, new software or hardware, etc.). 5 Steps to Effective Short-Term Rental Regulation 27 STEP #5 Advice for eliciting productive feedback: ? Remember to frame the policy around the planning objectives — avoid black and white stances ? Stay on topic ? Reference other comments so stakeholders understand they are compromising with other community members, not just the government Depending on local laws, your ordinance might have a built-in expiration date, but you may want to make changes before the sunset. Keeping a record of stakeholder feedback and updating your research will help you reassess and make your ordinance more effective in addressing your community’s goals. Goodman emphasizes that there is no silver bullet to effective short-term rental regulation. Every community will need to assess their own local context and values before diving into this process. However, you are not in this alone. Use peer governments and expert research like Goodman’s to help guide your process. 5 Steps to Effective Short-Term Rental Regulation 28 STEP #5 Steps to Effective Short-Term Rental Regulation 1. Research 2. Frame the Issue 3. Define Planning 4. Draft the Ordinance 5. Incorporate Feedback Objectives · Local STR market · Stakeholder analysis · Community values · Defining STRs · Provide channels · Local context · Tailored messaging · Matching planning · Land use & zoning · Keep constructive objectives with policy · Identifying · Unit characteristics · Adjust regulations measures stakeholders accordingly · Host operations · Existing policies · Guest requirements · Enforcement · Permitting process capabilities · Enforcement process By thoughtfully tackling this regulation area you are not only helping your residents achieve their goals as a community, but also paving the way for other governments looking to do the same thing. As technology and the sharing economy evolve, local governments will need to continue creating effective, adaptable regulation to match it. 5 Steps to Effective Short-Term Rental Regulation 29 Regulation can be difficult - we’d like to help. OpenGov is the leader in modern ABOUT OPENGOV cloud software for our nation’s cities, OpenGov Citizen Services modernizes counties, and state agencies. If you’re community development and other looking to launch a program like this complex civic services through highly configurable workflows replete with one, let us help you design an efficient digital forms, signatures, and payments. process that is easy-to-use by both Featuring a user-friendly constituent portal seamlessly integrated with backend citizens and staff. data collection and approval rules, OpenGov Citizen Services delivers an all-in-one cloud solution to streamline processes from intake through issuance. With OpenGov Citizen Services, REQUEST DEMO governments can decrease turnaround times by 50%, save staff hours, drive increased revenue, and delight citizens without compromising the administrative controls their teams need. OPENGOV.COM (650) 336-7167 • contact@opengov.com 5 Steps to Effective Short-Term Rental Regulation 30