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Home My WebLink About11-12-2013 ac juran ss1Goodwin, Heather From: Sent: To: Subject: Attachments: Mejia, Anthony Wednesday, October 30, 2013 5:04 PM Goodwin, Heather FW: Short term rental prohibition Ltr to SLO Mayor and Council.docx RECET\iTÐ OcT 3 1 2013 AGENDA CORRESPONDENCE Anthony J. Mejia I City Clerk <.".T{.\ r}f. S¿vt lü¡$ (ì1ì,l.9ll('} 99o Palnt Slrecl San Luis ûhispo, CÅ q.14ot tel lSc5 7fl:.7soz From: Max, Jan Sent: Wednesday, October 30, 2013 2:46 PM To: Mejia, Anthony Subject: FW: Short term rental prohibition -----Ori ginal Message----- From: Maureen Juran liuran.maureen@gmail.com] Sent: Tuesday, October 29,2013 01:57 AM Pacific Standard Time To: Marx, Jan; Smith, Kathy; Christianson, Carlyn; Carpenter, Dan; Ashbaugh, John Cc: ro COITì Subject: Short term rental prohibition Dear Mayor Marx and Members of Council, Attached please find a letter from me addressing the proposed amendment to your City Code to repeal the prohibition on short term renters. I thank you for your service and attention. Maureen Juran Wlo¡reRMrcuow&Cox,,, ATf ORNIYS AT LAW Mayor Jan Marx Vice Mayor Kathy Smith Council Member Carlyn Christianson Council Member Dan Carpenter Council Member John Ashbaugh October 29,2013 via e-mail via e-mail via e-mail via e-mail via e-mail imarx@slocitv.orq ksmith@slocitv.orq cchristi@slocitv.orq dcarpent@slocitv.orq iashbauq@slocitv.orq Dear Mayor Marx and Council members, I understand that you are being asked to consider a policy change to allow short term rentals in SLO. I recently stayed with a host in SLO and wanted to write you about my experience and why a policy change would be good for your community. I have a daughter who is a freshman at Cal Poly and we reside out of state. As you can imagine, we look forward to several years of visits to your beautiful part of the country. I also practice law in Colorado exclusively in the area of local government and own a second home in Colorado ski country that we rent to short term renters, so I am familiar with the concerns that you may be hearing. On my recent visit to SLO, which was around Cal Poly's parent's weekend, I was so delighted to come across the Airbnb website. I struggled with whether to make the trip at all as I decided last minute that I could clear my schedule and visit my daughter if I could find reasonable airfare and accommodations. Frankly, the opportunity to rent from that host tipped me over to deciding to come. The hotels were booked and I was looking at needing to stay outside of SLO at more expensive accommodations. ln the end, since I was renting from a SLO host, I spent my money at SLO restaurants and at SLO shops. As with any community, this tax revenue is no doubt critical to your ability to support and improve infrastructure and municipal programs in your City. Rather than prohibit short term rentals, it makes economic sense to permit them, tax the lodging, and address any nuisance concerns by separate legislation that gets at the root of the issue. To outright prohibit short term rentals is too broad a prohibition when the nuisance objections are usually more specific. lf noise is an issue, enforce a noise ordinance. lf parking is a concern, enforce your parking restrictions. lf loud parties are a concern, set up a permit program that limits the number of guests based on available rooms and requires that the property owner or manager be on site or able to be on site within a set timeframe. While this undoubtedly would cost the City some upfront program money, you can ensure that the permitting program and tax revenue generates sufficient revenue to cover such costs. As an example, I am aware that Pacific Grove changed its policy to start allowing short term rentals despite a ban that had been in place since 1993. The leaders of that city recognized that the activity was occurring illegally despite the ban so they amended their municipal code and established a license for transient residential use. Opponents in that city argued the ordinance would attract too many vacationers who might use homes in quiet neighborhoods to throw large parties and cause other disturbances. City leaders wisely recognized that a licensure program with strict guidelines, like requiring a 13133 Eost Aropohoe Rood . Suite 100 . Centenniol, CO B0l l2 Tel 303.754.3399 . Fox 303,754,3395 . www.wmcotiorneys.com Document Name Date Page 2 of 2 property manager who can respond to a vacation rental in the event of an emergency within 30 minutes, can adequately address opponents' issues. At its inception, Pacific Grove leaders were estimating that the fees and tax would generate approximately $200,000 for the city, which, like so many municipalities, was facing a long{erm budget gap. I would also like you to consider that: 1. More available accommodations in SLO means more sales/lodging tax generated in SLO and the business community continues to thrive with increased visitors to restaurants, shops, etc. 2. Chain hotels in town are usually owned by out-of-town interests. Local accommodations benefit your residents who then spend the moneys they receive in your city, This is an advantageous economic cycle that would be shameful to break. 3. There is a growing international trend toward these types of accommodations for travelers rather than conventional lodging as evidenced by the prolific growth of web sites such as Airbnb. You will eventually have to spend money and human resources to address this issue by enforcing against otheruvise prohibited rentals or enforcing the nuisance concerns. lt is always better policy to be proactive and set up a sensible licensing and taxing program to ensure funds are available through the permitting and tax process to control nuisance concerns. 4. This change would allow your city to get more economic benefit out of your existing development while supporting your local tourism economy, 5. The nuisance objections voiced are just as likely, and maybe more likely, to occur with a 31 day renter as with a 3 day renter. ln fact, shorter term renters are less likely to establish the ties within a community that could result in excessive gatherings, parking, noise, etc. 6. The revenue raised by property owners decreases the chances that responsible owners will lose their homes, etc. and increases their revenue which they necessarily will put into property maintenance and upgrades so as to attract renters. This can only maintain or increase property values in your neighborhoods. 7. Secondary economic benefit to your community is also seen in that support services to the rental industry will see increases in revenue. Your local service and goods providers such as housecleaning, dry-cleaning, upholstery, taxi and limo, restaurant, winery, tasting room, retail, grocery, home repair and improvement, nursery and landscaping, household supplies and soft goods will all benefit.L You are surrounded by other communities such as Arroyo Grande and Morro Bay where there is a growing residential short term rental presence. Visitors that prefer the residential lodging experience will go these communities and spend their funds there if the City does not amend its ordinance. lf the City chooses not to repeal its prohibition on short term residential rentals, l, and undoubtedly other, will look for them in nearby communities that do allow it, such as Arroyo Grande. That would be a shameful loss of revenue for your magnet community, I respectfully request that you repeal your existing prohibition. Sincerely, /s/ Maureen Juran 13133 Eosl Aropohoe Rood . Suite 100 . Centenniol, CO B0ll2 Tel 303,254,3399 . Fox 303.254.3395 . www,wmcottorneys,com