Council pulls away from idea of limits on short-term rentals in Crested Butte

Licensing, regulations and cap discussion to continue November 14

by Mark Reaman

The expected long, contentious discussion about whether the Crested Butte Town Council should impose caps on the percentage of short-term rentals (STRs) allowed in town ended up being a relatively short debate at last Monday’s council meeting. The five present council members made it clear they did not want to put a limit on STRs in town at this time.

Somewhat surprisingly, the long discussion came over proposed rules governing health, safety and licensing of STRs, the so-called “low hanging fruit” of the issue. In front of a full council chamber on Monday, October 17, the present council members went over details and listened to public comment on many issues associated with regulating STRs in a proposed ordinance that deals with the upgrading of regulations and licensings. While the latter turned into a long discussion to be continued on November 14 (see page 14 for details), the council relatively quickly arrived at a consensus regarding caps.

The council had appointed a citizens committee last summer to study and make recommendations to the council on the issue. Given the controversial nature of putting a limit on STRs, that aspect of the committee recommendation was selected for separate discussion from the other recommendations dealing primarily with licenses and safety regulations. The committee ultimately recommended placing caps on STRs, stating, “The unfettered licensing of short-term rentals at some point is detrimental to the community, housing availability and the culture of Crested Butte.”

The idea of caps brought some harsh public response from local homeowners, some businesses and property managers in town. Lawyers were hired and letters in opposition written to the council.

When it came time to talk about placing hard caps on such rental properties, the council was quick to walk away from the idea Monday evening.

“I think it has been difficult,” admitted councilman Roland Mason. “I think some of the things we are putting forward with licenses and regulations and inspections will have some people evaluating if it is worth it. I think what we currently have in place through zoning could keep the amount down without formal caps. I’m saying we don’t need caps right now.”

“I think it is appropriate for council to set limits on things in residential areas,” said councilmember Jim Schmidt, who also served on the citizens committee. “We do it all the time right now. We don’t allow pig farms in residential zones. And people talk about ‘takings’ with their property. There is also the taking of pleasure from neighbors when the noise or parking is out of hand. If every other house were a short-term rental in town, it would definitely take away from the pleasure of people living in town. Really, there is more than just ‘takings’ in this discussion. The town has given a lot to the people and property owners of this community.

“I’ve gone around and around on this aspect from the beginning,” continued Schmidt. “I don’t think we will gain much, if anything, by putting limits on it. I think we would end up with more dark houses. I also think people would cheat and find a way around it. At this time, I am not comfortable with putting a cap on it. I know that is different from the committee recommendation.”

“I think this needs a lot more discussion and research,” added councilperson Paul Merck. “We already have parking and noise ordinances to address those issues. As for the caps themselves, I don’t think they’re fair and the non-transfer of the licenses is not fair to anyone. When people say they are concerned about the look of the town, I look out there and think it looks pretty good.”

“I fear a cap wouldn’t produce the results we want and we all want to preserve what is special about this community,” said councilperson Chris Ladoulis. “There are other ways to preserve the community we like. We need to be respectful of each other and the reasons we all moved here and the things we love about the place.”

“A big discussion of a council a long time ago was ‘Who are we saving the place for?’ when we make decisions,” said Schmidt. “Are we making decisions for the people here now or for those who haven’t yet arrived?”

Mayor Glenn Michel said it was obvious with four council members drawing a hard line against STR caps that, “The council is not willing to impose caps on STRs on town at this time.”

Council members Erika Vohman and Laura Mitchell were not at the meeting.

Given the late hour of the meeting, Michel and the council chose to not take further public comment on the issue but Michel said he would allow comments at the November 14 meeting from people for and against the cap.

“The discussion is not over,” guaranteed Mason. “We want to hear from people. And we as a council need to talk about enforcing the current zoning.” There are presently zones in town that do not technically allow STRs but where people are actively short-terming homes and even have town business licenses related to STRs.

“We will give ample time for comment at the next meeting,” assured Michel.

That special meeting will start at 6 p.m. on November 14 and be dedicated solely to the STR issue.

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