HomeMy WebLinkAboutPACKET Town Board Study Session 2025-04-08
Town of Estes Park
TOWN BOARD STUDY SESSION
April 8, 2025 from 4:45 p.m. – 6:45 p.m.
Town Hall Board Room
170 MacGregor Ave, Estes Park
Accessing Meeting Translations (Accediendo a las Traducciones de la Reunión) can be
found on the Town website at www.estes.org/boardsandmeetings
Public comment is not typically heard at Study Sessions, but may be allowed by the Mayor
with agreement of a majority of the Board. This study session will be streamed live and
available at www.estes.org/videos
AGENDA
4:45 p.m. Annual Review of Vacation Home Cap.
(Town Clerk Williamson)
5:00 p.m. Vacation Home Waitlist.
(Town Clerk Williamson)
5:45 p.m. Hosted Short-Term Rentals.
(Town Clerk Williamson)
6:30 p.m. Trustee & Administrator Comments & Questions.
6:40 p.m. Future Study Session Agenda Items.
(Board Discussion)
6:45 p.m. Adjourn for Town Board Meeting
Informal discussion among Trustees and staff concerning agenda items or other Town matters may occur before this
meeting at approximately 4:30 p.m.
TOWN CLERK OFFICE
MEMO
To: Mayor Hall
Town Board of Trustees
Through: Travis Machalek, Town Administrator
From: Jackie Williamson, Town Clerk
Date: April 8, 2025
RE: Annual Review of Vacation Home Cap
Purpose of Study Session Item:
Review the residential vacation home cap as required by the Municipal Code on an
annual basis.
Town Board Direction Requested:
Staff requests direction on changes to the residential cap of 322 for vacation homes.
Present Situation:
During the development and adoption of the vacation home regulations in 2016, the
Town Board requested the residential cap be reviewed on an annual basis. The
Municipal Code states the cap will be reviewed on or around April of each year.
Proposal:
The presentation outlines the history and current vacation home license numbers to
assist with a discussion on the current vacation home cap for residentially zoned
properties.
Advantages:
• Review of the vacation home cap to meet the requirements outlined in the Municipal
Code.
Disadvantages:
• Increase in the vacation home cap could further impact residential neighborhood
character.
Finance/Resource Impact:
Staff time depending on the direction received by the Board.
Level of Public Interest
Low at this time for the general community but high for those interested in operating a
vacation home in a residential zoning district.
Attachments:
1. Presentation.
TOWN CLERK OFFICE
MEMO
To: Mayor Hall
Town Board of Trustees
Through: Travis Machalek, Town Administrator
From: Jackie Williamson, Town Clerk
Date: April 8, 2025
RE: Vacation Home Waitlist
Purpose of Study Session Item:
The current vacation home waitlist is almost exhausted; therefore, a discussion is need
to determine next steps in addressing available licenses for residentially zoned vacation
homes under the current cap of 322.
Town Board Direction Requested:
Staff requests direction on how to move forward with vacancies for residentially zoned
vacation homes once the waitlist is exhausted.
Present Situation:
In October 2021, the Town Clerk’s office had 60 applications on the residentially zoned
vacation home waitlist with the number of applications increasing weekly. The Clerk’s
office at that time was processing on average eight applications per year. This led staff
to the conclusion that the waitlist was a minimum five – six year waitlist at that time.
With that understanding, staff requested the Town Board consider a moratorium on the
acceptance of any additional applications.
Ordinance 16-21 was passed by the Board to place a moratorium on the list. During the
past year, staff has seen an increase in the number of applications being removed from
the list. From the information gathered by staff, the primary reasons for applicants not
securing a license once removed from the list were due to the property selling and no
longer owned by the applicant, no longer interested as plans had changed, no longer
interested due to the non-transferability of the license, or the applicants did not
complete the licensing process within the timeframes allocated in the code.
The Clerk’s office removed 20 applications in 2024 in order to fill the vacancies
available during the year. This was 2.5 times the number of applicants pulled from the
list in previous years. The waitlist was 16 at the beginning of 2025 with eight
applications removed in March for processing, leaving 8 on the waitlist
Proposal:
The presentation provides a high-level overview of three options for the Board to
consider to address how the Town wants to move forward with available residential
vacation home licenses.
Option 1 – No Action
Option 2 – Annual Lottery
Option 3 – Waitlist with Cap
The presentation will outline each option and provide additional thoughts on the
advantages and disadvantages.
Advantages:
• Provides staff and the those interested in residential vacation home license with
direction on how to move forward.
Disadvantages:
• None.
Finance/Resource Impact:
Staff time depending on the direction received by the Board.
Level of Public Interest
Low at this time for the general community but high for those interested in operating a
vacation home in a residential zoning district.
Attachments:
1. Presentation.
Business/Short Term Rental
License Renewal Annual Report
Town Board of Trustees
April 8, 2025
ATTACHMENT 1
Why Are We Here?
To review the 2024-2025 Annual License Renewal
process
Discuss residential vacation home cap per the
requirements of the Municipal Code
Discuss future changes/issues
Waitlist Update and Future
2025 Business License Renewal
Business Licenses
2024 Renewals
1604 licenses
26 in Town licenses were delinquent
0 Citations were issued for
businesses which did not renew
2025 Renewals
1462 licenses as of today
39 in Town licenses were delinquent
as of 02-01-2025
4 Citations were issued for
businesses which did not renew by
02-15-2025 (two remain outstanding)
500
600
700
800
900
1000
1100
1200
1300
1400
1500
1600
1700
500
600
700
800
900
1000
1100
1200
1300
1400
1500
1600
1700
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Business Licenses-2012-2025
Total Licensed In Town Out of Town
2025 Vacation Home Renewal &
Residential Cap Review
Vacation Home Licenses
Current Cap 322
0
50
100
150
200
250
300
350
400
450
500
550
0
50
100
150
200
250
300
350
400
450
500
550
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Vacation Homes –2012-2025
Total Registered
Town Limits
Residential Commercial
Year
Total Registered
Town Limits Residential Commercial
2012 122 104 18
2013 143 122 21
2014 162 139 23
2015 191 163 29
2016 267 203 64
2017 377 282 95
2018 423 319 104
2019 424 308 116
2020 463 322 141
2021 480 322 158
2022 506 321 185
2023 524 322 202
2024 538 322 216
2025 551 314 237
Vacation Home Transferability
Transfers
by Year
Applications
Processed
Not
eligible to
transfer
2018 38 n/a
2019 42 n/a
2020 34 n/a
2021 12 4
2022 16 9
2023 14 18
2024 32 23*
0
5
10
15
20
25
30
35
40
45
2018 2019 2020 2021 2022 2023 2024
Transfers per Year
Applications
Process
Residential Commercial
Currently allow license to be transferred if commercially
zoned or the license has been maintained since 10/18/2021
*As of 3/31/2025 with 8 new applications being processed.
Lapsed Vacation Home Licenses
Reasons licenses have gone inactive
Workforce Housing Regulatory
Linkage Fee
Increase in lodging tax – Ballot
Issue 6E
Too many regulations
Not actively used
Overdue transfer
Expired license
Incomplete Application
Year Total Lapsed
Licenses
Incomplete
Applications
Residential Commercial
2017 38 10 27 11
2018 39 0 25 14
2019 26 1 20 6
2020 28 2 19 9
2021 23 3 15 8
2022 35 3 10 25
2023 6 0 5 1
2024 11 4 10 1
2025 13 1 8 5
Residential Vacation Home Cap
Waitlist by Year Applications
Processed
2018 8
2019 16
2020 15
2021 14
2022 8
2023 11
2024 9
Waitlist 8
Moratorium 10/2021
Next Application on Waitlist
Received 08/2021
Reasons for waitlist attrition
Withdrawals
Transfer of ownership
Loss of interest due to length of time on waitlist
Long-term renter
Incomplete application process
Residential Vacation Home Waitlist
Waitlist History
Residential Vacation Home Cap
Ordinance 29-16 set regulations including cap
Initial cap was met May 2018 and waitlist began
By October 2021 the list had reached 60 applications
Ordinance 16-21 placed a moratorium on the waitlist with no
new applications being accepted
At the beginning of 2024 the waitlist was at 36 with an average
of 8 units per year being removed and processed
As of the end of 2024 the residential vacation home waitlist stood
at 16
8 applications were pulled in March 2025 to begin processing
leaving 8 applications on the waitlist
Waitlist History
January 2017
Registration of all VHs.
Host Compliance assist
in identifying VHs &
Code Compliance
May 2018
Reached residential cap
and waitlist established
October 2021
60 applications on
waitlist
October 2021
Ordinance 16-21
p laced moratorium on
waitlist (Est. 6 Years)
Jan
2017
May
2018
Oct
2021
Dec
2024
April
2025
April 2025
8 applications on
waitlist
December 2024
16 applications on
waitlist
Waitlist Options
No
Action
Annual
Lottery
Waitlist
with
Cap
Waitlist – Options
No Action
Allow the waitlist to be exhausted
No new residential licenses issued
Reduction in the number of residentially zoned
vacation homes through attrition
Focus vacation homes in commercial zones
Waitlist – Options Detailed Cont’d
Annual Lottery
Administered once a year after renewal process
Recommend an application and fee
Reduces administrative costs overall throughout the year
Provides annual opportunity and limits stacking of multiple
properties by one owner on a waitlist
No guarantee on if or when a license may be made available
Challenges: Determine eligibility, how many application per
individual, business, etc.
Method used for licensing in other municipalities
Waitlist – Options Detailed Cont’d
Waitlist with Cap
Waitlist with a reasonable cap
List would close when cap is met
A list of no more than two-to-three-year period
(approximately 8 per year)
Provides owner with certainty of being on the list
A property owner may stack the list with multiple
properties
Creates a rush to get your application in first
Option 1:
No Action
Exhaust
Waitlist
No Further Action
Option 2:
Annual Lottery
Standard Method
Equal Opportunity
Limits application
processing
No Guarantee
Annual Reapplication
Option 3:
Waitlist with Cap
Reasonable Cap 2-3
Years
Provides Owner with
Timeframe
Limits application
processing
Multiple Properties per
Owner
Rush to Apply
Impact on Existing Licensees
Discussion Items
Consider adjustments to the residential vacation home cap
Board direction on waitlist
Board Discussion/Direction &
Questions
TOWN CLERK’S OFFICE
REPORT
To: Mayor Hall
Town Board of Trustees
Through: Travis Machalek, Town Administrator
From: Jackie Williamson, Town Clerk
Date: April 8, 2025
RE: Hosted Short-Term Rentals
Purpose of Study Session Item:
Continue the discussion the Town Board had at their November 12, 2024 study session
in which the Board reviewed options on how to define hosted short-term rentals and
provided comment and feedback to staff.
Town Board Direction Requested:
Staff requests the Board provide guidance on the following:
- Should staff move forward to draft an ordinance for Option 2 as favored by four of
the Board members?
- Should currently licensed B&Bs be offered the opportunity to apply for a vacation
home with Option 2 and exceed the residential cap in 2025?
Present Situation:
At the November 12, 2024 Town Board study session, the Board discussed three main
options: Option 1 – a new, separate hosted category, Option 2 – removing the
prohibition on residency in a vacation home and allow a property to be a hosted
vacation home, and Option 3 - no action. The Board further discussed the need to
determine how the current nonconforming B&B properties would be addressed on a
case-by-case basis if the Board moved forward with a hosted option.
Four of the seven Board members favored Option 2. They further recommended the
current B&B licensed properties be afforded the opportunity to apply for a vacation
home license under Option 2 and be allowed to exceed the residential cap in 2025.
Proposal:
The current presentation will highlight Board comments for both Option 1 and Option 2.
Staff will review the advantages, disadvantages and enforcement concerns as they
relate to each option. Direction from the Town Board will be used to draft an ordinance
for the Town Board’s review at an upcoming Town Board meeting.
Advantages:
• Changes to the current Municipal Code definition to allow the owner/primary
resident to occupy the home and to allow more than one party to be present could
increase housing opportunities and affordability of homeownership in Estes Park.
• May provide current B&B owners that do not or cannot meet the new B&B
regulations a viable option for continued operation by applying for a vacation home
license.
Disadvantages:
• May expand the number of short-term rental units and negatively impact other
accommodation businesses and/or the local neighborhood character.
• Regulations would need to be developed to ensure the homes are truly “hosted”
short-term rentals and not a vacation home if Option 1 is considered.
• The workforce housing regulatory linkage fee may be impacted pending further
discussion and regulations developed.
• Code enforcement may increase depending on code requirements for hosted
vacation rentals.
Finance/Resource Impact:
Staff time depending on the direction received by the Board.
Level of Public Interest
Medium for those interested in operating and for those impacted by a third category
such as homeowners, other accommodation owners, and future homeowners.
Attachment(s)
1. Presentation
1
Hosted Short-Term Rentals
April 8, 2025
2
Approval of Ordinance 11-24 bed and breakfast regulations on July 9, 2024.
Current bed and breakfast licenses to be compliant with new regulations by January 1, 2026
Town Board requested a review of a new rental category -Hosted Short-term Rental-1st discussion at study session August 27, 2024
2nd Town Board discussion held November 12, 2024.
Why Are We Here?
3
Reviewed three options:
-Option 1
Three in favor of a separate
hosted category
-Option 2
Four in favor of on category
with the removal of owner
occupancy prohibition in
current code
-No change
No discussion
Outcome of November 12,
2024 Study Session
4
-Review Board discussion on options:
-Option 1: New, Separate Category
-Option 2: Remove Prohibition on Residency in Vacation Homes
-Board Discussion
Objective
5
Estes Park Municipal Code -Vacation Home
Section 5.20.110(e)(8)a Additional Provisions
Number of parties: Vacation homes in residential zone districts as those
districts are defined in Subsection (b) above shall be rented, leased or
furnished to no more than one (1) party at a time, occupying the vacation
home as a single group. Owners of the vacation home shall not occupy
the vacation home while a party is present.
Option 1: Separate Hosted Vacation Home Category
The new category will allow the “resident” to occupy a portion of the
home while a portion of the home is rented out nightly.
Favored by three Board members with the following comments:
•Support separate category with a primary resident as host
•No cap
•Rental to multiple parties
•No workforce housing regulatory linkage fee
Option 1: Separate Hosted Vacation Home Category,
continued
Significant Issues:
•May create an incentive to identify as hosted rather than un-hosted
based on no cap or workforce housing regulatory linkage fee
•Staff (Town Clerk’s Office/Code Enforcement) does not have the
resources to verify the individual listed as the “resident” is actually
living on the premises and present during the short-term rental
•Residency is challenging to enforce, especially without a budget to
hire a contractor to monitor compliance
•Without a clear enforcement mechanism to ensure the “resident” on
file with the application is present during the rental, staff cannot
recommend this option
Option 1: Separate Hosted Vacation Home Category
Pros:
•Allow the “resident” to occupy a portion of the home while a portion of
the home is rented out nightly to one (1) party
Cons:
•Enforcement to ensure the property is hosted
•Incentive to become hosted if the linkage fee or cap does not apply
•May encourage the development of non-permitted uses in single-
family zoning districts
Option 1: Separate Hosted Vacation Home Category
Increase in administrative process and monitoring of primary resident
•Require a map of the home outlining the areas to be used by the host/guests
•Reviewing advertisement to ensure the property remains hosted
•Requiring and updating permanent resident information throughout the year
•In home notice update and database management
•Impacts to continuous operation with primary resident changes
•Notification of neighbors with a change in primary resident
Enforcement
•Confirming home is hosted while licensed and rented
•Enforcement could be time consuming and difficult
•Complaint based
Option 2: Remove Prohibition on Residency
Update Municipal Code to allow the primary resident to occupy the home
while it is being rented.
Favored by four Board members with the following comments:
•Simplicity
•No new caps, categories, or fee changes –maintain linkage fee
•Rent to no more than one party –primary resident and one other party
•Reduces enforcement by allowing flexibility to host/un-host throughout the year
•Continuous operation
•No protection of residential neighborhoods with Option 1 and no cap
•Allow current B&Bs to apply over the current cap
•Provides additional housing within the community
Option 2: Remove Prohibition on Residency
Pros:
•Flexibility to rent the entire home or a portion of the home throughout the
year and allows continuous operation
•No restriction on a “resident” occupying the home during a short -term rental
•Workforce housing regulatory linkage fee applicable whether hosted or not
•No incentive to become a hosted rental to avoid linkage fee
•Could be included in the current residential cap, no separate cap needed
•Enforcement of occupancy status not an issue
Cons:
•May encourage the development of non-permitted uses in single-family
zoning districts
Common Elements
•All other vacation home regulations would apply with identified exceptions:
•Allow more than one party to occupy the home
•Allow home occupations
•Occupancy limits would apply
•Hosted properties would include residents within the limit
•Number of rooms rented would be limited by occupancy
•Inspections to ensure compliance with the municipal, development and
building codes
•Allow current B&B licensed properties to convert and exceed current
residential cap
Hosted Example
Hosted Example
Hosted Example
16
Board Discussion
Aleta Kazadi
755 Elm Road, Unit 10
Estes Park, CO 80517 April 8,2025
Honorable Town Council Members
Estes Park Town Hall
170 Macgregor Ave,
Estes Park, CO 80517
Dear Town Council Member:
I am writing to ask the Town Council to amend Ordinance 16-21 to exempt lower-
income, senior homeowners from the 2020 cap on short-term residential licenses and the 2021
moratorium of joining the waiting list.
Rationale for Request
Many Estes Park lower-income senior homeowners are struggling financially. Prices are rising
much faster than their retirement income and many lower-income seniors are unable to join the
workforce due to age and health limitations. However, their homes can be a source of income.
Estes Park should allow these lower-income seniors to use their primary asset—their home—to
generate revenue to supplement their retirement income by exempting them from the cap or limitations
on short-term residential licenses.
Allowing lower-income seniors who wish to rent out their home within Estes would be good for those
seniors who wish to take part in such a program. Many seniors visit their families for extended times
and being able to rent out their homes this will allow them the extra money they need that will make
their lives more comfortable.
Impact on Estes Park
Given Estes Park’s robust tourism industry, it is likely that adding additional short-term
rentals to the market will not substantially impact present rentals, motels, or hotels and it will allow
seniors who choose to participate in this program a way to augment their income during the heavy
tourist season.
Eligibility Requirements: Estes Park Homeowner, Lower Income Senior Homeowners interested
in this method to augment their income must be:
Age 65 or older by January 1 of application year
Homeowner within the Estes Park town boundaries
-Lower-Income defined as at or below Area Median Income (AMI) for Larimer County
Thank you for your consideration.
Sincerely,
Aleta Kazadi
(See back for statistical information)
PUBLIC COMMENT RECEIVED
BY 12:00 PM 2025-04-08
The number of lower-income Seniors living in Estes Park………..250-500
The number of lower-income Seniors who are Homeowners……...160-320
Individual homes owned by lower-income Seniors………………..85-170
Lower income Senior Homeowners who may want a Short-term rental license….25%-50%
Additional Short-term rental units from lower income Seniors……………….21-85
(Numbers above based on census data. High end of range calculated by doubling the low-end estimate)
-----------------------------------------------------------------
Estes Park Population (2023)……………………………………...5,824
Population over age 65………………………………………40% pr 2370
Persons in poverty…………………………………………...9.9% or 577
Apply poverty percentage to population over 65…………...2370 * 9.9%=234
Number of lower income seniors……………………………..250-500
Percent of homes that are owner occupied……………………..69%
Home Owners over age 65 and low income…………………..1635 * 9.9%= 162
Lower income Seniors who live alone or in a couple
Persons per household = 1.9 …………162/1.9 =85
April 22, 2025
• Annexation Policy
• Bed & Breakfast/Vacation Home License
Transition
May 13, 2025
• OHV/Golf Carts on Roads
• Noise Ordinance Enforcement
• Flock Safety Cameras
May 27, 2025
• High Impact Project Process
• Outside Entity Funding (Policy 671) Edits
June 10, 2025
• State Wildfire Code
• Cleave Street Redevelopment Update
Items Approved – Unscheduled:
• Estes Park Health Update
• Overnight Parking
• Police Department Facility Financing
• Police Department Facility Update
• Curb and Gutter Philosophy
• Liquor License Process
• Stanley Park Master Plan Implementation
Items for Town Board Consideration:
• None
Future Town Board Study Session Agenda Items
April 8, 2025