O-18. Amending the Land Development Code by Modifying the Short Term Vacation Rental Regulations

Palisade Board of Trustees
Date of Vote: Tue, Jul 11th 2017
Polls (closed):
Yay (0)    Nay (0)

Summary

                    An Ordinance of the Town of Palisade, Colorado, Amending the Land Development Code for the Town of Palisade by Modifying the Short Term Vacation Rental Regulations.

At the meeting of March 6, 2017, the Planning Commission recommended that the Board consider placing a temporary moratorium on applications for short term vacation rentals to give staff time to define possible new limits on the number of rentals. Although the issue was considered with the amendments in 2016, no limits were placed on the number of rentals that could operate in the Town.
                
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                    The Planning Commission requested the moratorium so that possible applications that might come before the Planning Commission would not be affected by any new limitations. A two-month moratorium was approved by the Board of Trustees at its regular meeting of March 28 for the period between April 3, 2017 and July 3, 2017.

The Planning Commission considered changes to the short term vacation rentals at meetings held in May and June. During its consideration, the Commission discussed the most recent approvals for two rentals that shared a property line. A consensus of the Commission was that the close proximity of rentals to other rentals was not detrimental to the viability or sustainability of neighborhoods. The Commission did, however, support placing a maximum limit on the number of short term vacation rentals that could operate in the Town. The Planning Commission asked staff to bring the an ordinance back for consideration with a limit of no more than 3 percent of the single family housing stock. A three percent maximum would establishe a maximum of 20 rentals, based on a current estimate of 666 single family housing units in the Town (2015 American Community Survey Estimates). At present, a total of eleven homes are currently operating with business licenses. Two homes are in the process of obtaining licenses after approvals were granted in March. Finally, an application for a rentals that was considered at the regular meeting in April is pending future consideration by the Planning Commission. Assuming all licenses are obtained, the 3% limit would allow for six more applications for short term vacation rentals. The Planning Commission indicated that it would like staff to monitor the impact of the limit on future approvals and applications, and any adjustments could be considered in the future if necessary. 

The commission requested that staff also make two other minor adjustments to the regulations. The first change was to prevent short term rentals from offering food service to over-night guests. The commission determined that the offering of food service was not the intent of the short term rentals and that if food service was offered, the use should be considered a bed and breakfast. Finally, the commission requested that staff add language to prevent re-applications for rentals that were denied no sooner than six months after the denial. This change would allow for adequate time for property owners to address the basis for denials before returning to the Planning Commission for any reconsiderations.

 WHEREAS, pursuant to 31-23-305, C.R.S., the Board of Trustees may adopt, alter or amend zoning and regulations; and

WHEREAS, on November 11, 2014 the Board of Trustees adopted an ordinance adding short term vacation rentals and the use standards to the Land Development Code; and

WHEREAS, on August 9, 2016 the Board of Trustees adopted an ordinance strengthening the regulations governing short term vacation rentals; and

WHEREAS, since the ordinance and amendment have been in effect, the Town has received sixteen applications for short term vacation rentals and the expectation is that the Town will receive additional applications; and

WHEREAS, the Town’s Planning Commission has recommended to the Board of Trustees that the amendments to the Land Development Code contained in this Ordinance be adopted; and

WHEREAS, in accordance with Section 7.3 of the Palisade Land Development Code, and Section 31-23-306, C.R.S., on July 10, 2017 a public hearing was held before the Planning Commission of the Town of Palisade to consider recommendation of the amendment of the Land Development Code to the Board of Trustees as set forth herein, following public notice as required by law; and

WHEREAS, in accordance with Section 7.3 of the Palisade Land Development Code, and Section 31-23-304, C.R.S., on July 11, 2017 a public hearing was held before the Board of Trustees of the Town of Palisade to consider the amendment of the Land Development Code as set forth herein, following public notice as required by law; and

WHEREAS, the Board of Trustees of the Town of Palisade finds and determines that the amendments to the Land Development Code, as contained herein, are necessary and designed for the purpose of promoting the health, safety, convenience, order, prosperity and welfare of the present and future inhabitants of the Town of Palisade, and is consistent with the Town’s Comprehensive Plan and the Town’s other goals, policies and plans.

NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF TRUSTEES OF THE TOWN OF PALISADE, COLORADO:

Section 1. That the supplemental residential use standards of the Town of Palisade Land Development Code Section 3.3.14 Short Term vacation rentals is hereby amended with the following additions as follows:

    Q. The number of short term vacation rentals that may operate at any one time, shall be no more than 3 percent of the total number of single family housing units in the Town. The number of single family housing units shall be based on the most recent data available from the U.S. Census Bureau and the State of Colorado Demographer’s office.

    R. No food service shall be offered to overnight guests by the owner or operator of the short term vacation rental.

    S. If a short term vacation rental is denied either by the Planning Commission or upon an appeal by the Board of Trustees, a request for a short term vacation rental for the same property may not be made until at least six months from the date of denial.
                

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