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Home My WebLink AboutMINUTES Town Board Study Session 2025-04-08RECORD OF PROCEEDINGS Town ofEstes Park, Larimer County, Colorado April 8, 2025 Minutes of a Study Session meeting of the TOWN BOARD of the Town of Estes Park, Larimer County, Colorado. Meeting held at Town Hall in the Board Room in said Town of Estes Park on the 8th day of April, 2025. Board: Mayor Hall, Mayor Pro Tem Cenac, Trustees Brown, Hazelton, Igel, Lancaster, and Younglund Attending: All Also Attending: Town Administrator Machalek, Deputy Town Administrator Damweber, Attorney Kramer, Director Fetherston, Police Chief Stewart, Deputy Town Clerk Beers Absent: None Mayor Hall called the meeting to order at 4:45 p.m. ANNUAL REVIEW OF VACATION HOME CAP. Town Clerk Williamson stated there are 314 residentially zoned (eight applications are in progress) and 237 commercially zoned licensed vacation homes. The Estes Park Municipal Code requires the residential vacation home cap be reviewed by the Board on an annual basis. She reviewed the history and current vacation home license cap of 322 for residentially zoned properties, transferability, and reasons licenses have been marked inactive. The Board requested clarification on the previous Board decision to allow transferability. It was requested and determined staff would bring forward code changes related to vacation homes owned by a limited liability company transferring interest percentages. VACATION HOME WAITLIST. 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. Due to the approximate number of applications processed each year, staff anticipated the waitlist would take a minimum of five-six years to process. Staff requested the Town Board consider a moratorium on the acceptance of any additional applications which was approved through Ordinance 16-21 effective November 2021. During the past year, staff have seen an increase in the number of applications being removed from the list. The primary reasons for applicants not securing a license once removed from the list were due to the property selling, no longer interested in a license, no longer interested due to non-transferability, or the applicant did not complete the licensing processes within the deadlines outlined in the code. The waitlist was 16 at the beginning of 2025 with eight applications removed in March for processing, leaving eight remaining. Options provided to the Board included Option 1 - no action, Option 2 - an annual lottery process for openings within the cap or Option 3 - reinstitute the waitlist with staff recommending a cap on applications received. She reviewed pros and cons of each option and requested Board direction. Board discussion ensued and has been summarized: If staff knew the number of instances a single owner had multiple properties on the waitlist; impacts on staff time for each option; timing considerations; how the cap was originally set, potentially requesting local realtor input on options; and the importance for careful consideration on the design of the lottery system and the potential for combining a lottery and waitlist. Discussion ensued regarding implications of an application period for available licenses in the future, public engagement on the process and options for carryover value for consecutive yearly applications. A majority of the Board were in support directing staff to bring forward a code amendment combining both Options 2 and 3. HOSTED SHORT TERM RENTALS. At the November 12, 2024 study session the Board reviewed options on how to define hosted short-term rentals. The Board discussed three main Options: Option 1 - a new separate hosted category, Option 2 - RECORD OF PROCEEDINGS Town Board Study Session - April 8, 2025 - Page 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. Four of the seven Board members favored Option 2 and recommended the current bed & breakfast (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. Town Clerk Willamson reviewed Options 1 and 2 including pros/cons and enforcement implications for each option. Staff requested Board guidance on the following: should staff move forward to draft an ordinance for Option 2 as favored by four of the Board members; and 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. Staff highlighted Option 1 enforcement concerns including who is the primary resident and the potential of development of non- permitted uses. The Board questioned whether the currently licensed B&Bs are all residential; concerns option 2 may turn properties into illegal duplexes and asked how staff would ensure properties are operating within the regulations. A majority of the Board were in support of Option 2 and directed staff to draft code changes for consideration and provisions allowing existing B&Bs to apply for a vacation home license over the 322 cap which would then come back down through attrition. TRUSTEE & ADMINISTRATOR COMMENTS & QUESTIONS. None. FUTURE STUDY SESSION AGENDA ITEMS. It was requested and determined the Stanley Park Master Plan Implementation item would occur through the annual Capital Improvement Plan process, the Bed & BreakfasWacation Home License Transition would be removed and the Electric Rate Study would be scheduled for April 22,2025. COMMENTS & QUESTIONS, None. There being no further business, Mayor Hall adjourned the meeting at 6:19 p.m. ^^^BUrmy'Victoria Beers, Deputy Town Clerk