CB vacation rental license adjustments close to wrapping up

CB looking at keeping about 200 STRs but distilling concentration

[  By Mark Reaman  ]

It appears the path to make some relatively minor but noticeable changes to Crested Butte’s Vacation Rental licensing process will end at the next council meeting. The council discussed the issue and took some public comment at the November 7 meeting and will hold an official public hearing and vote on November 21.

Under the current proposal, changes include allowing those with the “primary” vacation rental license to rent their units up to 90 nights instead of the current maximum of 30 nights. Those with the “unlimited” licenses will be mandated to rent at least 30 nights. Currently there is no minimum rental associated with that license. 

Council is leaning toward lessening the concentration of impacts of short-term rentals by limiting the number of unlimited licenses to just two per “block face” in the currently permitted 10 zones. This is meant to balance the concentration of STRs within each block to reduce nuisance potential and improve neighborhood compatibility. Because anyone with a current vacation rental license would be “grandfathered in” and not have to meet the new regulations as long as they meet the new performance standards of not receiving three nuisance violations and renting the unit at least 30-days in a calendar year, it is estimated that over time and through attrition a total of 198 unlimited vacation rental licenses would be allowed in the permitted zones in town. Aside from those currently with multiple licenses, going forward, each license will have to be issued to an individual and only one license per person will be allowed.

Licenses are not transferrable. If a house with a license is sold, the new owner would have to apply for a new license. All license applicants would be considered in the fall and the town would conduct a lottery in December to award licenses in the available slots. The lottery is clearly meant to “create some uncertainty” to reduce the incentive of purchasing a home with the primary motivation of using it as a vacation rental. 

The new changes would also address nuisance enforcement through a so-called “three strike” policy. While town marshals are expected to continue using a small town, light touch approach when dealing with nuisance issues, if a property is ultimately cited, it would be recorded and if three citations were issued the license could be revoked. Fees will be adjusted to pay for further enforcement and a software program is being purchased to better track town contact with STR properties that receive complaints.

Local property manager Steve Ryan said mandating 30 days of rental activity on the unlimited licenses makes more sense than the original proposal to mandate 90 days. He said only about half the STRs he manages in town might get close to 90 days of renting since most owners like to come and use the house themselves. 

Martha Keene said she was in favor of not allowing dense STR concentrations of vacation rental properties. “I am living in the heart of it,” she told the council. “Don’t make me live in a business district instead of a neighborhood. I’m in hell sometimes where I live. Make your decisions on this for your community. And I think all licenses should be tied to a local property management connection so they can deal quickly with any issues.”

Council was split on how to address the concentration issue but four of the seven, mayor Ian Billick and councilmembers Gabi Prochaska, Beth Goldstone and Jason MacMillan, expressed support for the “block face” limitation recommendation of staff. Councilmember Anna Fenerty preferred an alternative that allowed a lower concentration of STRs in residential zones and a higher concentration in mixed residential/business zones. That would ultimately lower the unlimited licenses to 148. Councilmember Mallika Magner and Chris Haver preferred keeping the status quo and that currently allows 212 unlimited licenses. 

“I live next to an STR and for a while I wasn’t sure if I preferred it empty or with people,” said Magner. “I like it better with people in it.”

“It is important to make decisions for the community we have here now,” said Goldstone. “I think spreading out the concentration will help bring down the nuisance complaints.”

“With the grandfathering it will take a while to get there but I like the statement that makes about the concentration,” said Billick.

The council will continue the discussion and listen to more public comment at the November 21 meeting.

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