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HomeMy WebLinkAboutMINUTES Town Board Special Study Session 2022-03-01RECORD OF PROCEEDINGS Town ofEstesPark Larimer County,Colorado,March 1,2022 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 said Town of Estes Park on the JSt day of March,2022. Board:Mayor Koenig,Trustees Bangs,Cenac,MacAlpine, Martchink,Webermeier and Younglund Attending:All Also Attending:Town Administrator Machalek,Assistant Town Administrator Darnweber,Attorney Kramer,Director/Town Clerk Williamson Absent:None Mayor Koenig called the meeting to order at 5:00 p.m. VACATION HOME RENTAL (SHORT-TERM RENTAL)FEE STUDY Town Clerk Williamson began the meeting by clarifying the term “vacation home”, stating the term has been used in both the Development Code and Municipal Code to refer to short-term rentals of less than 30 days,and in this context does not include second homes owned and used by property owners for vacationing or long-term rentals. A brief review of the origin of the study was provided which began on June 8,2021 with Mayor Pro Tern Martchink inquiring on the possibility of instituting a use tax or fee on vacation home rentals.This led to the approval of a fee study at the Board meeting on August 24,2021.The Town engaged the services of Root Policy Research to conduct a fee study to quantify the relationship between the operation of vacation home rentals and the cost and availability of workforce housing.It was noted a fee would be one element of a multi-prong strategy to address workforce housing. Mollie Fitzpatrick/Roots Policy Research presented the final draft of the fee study.She reviewed the methodology used,the market trends,the impact analysis,direct impact of Estes Park STRs on workforce housing supply,and a fee calculation using an “affordability gap”methodology.She noted,the study does not presume that every short-term rental equates to a lost opportunity for workforce housing,rather determines the degree to which short-term rentals have an impact on housing.The study found that for every 100 short-term rentals in Estes Park the community sustains a loss of 3-9 rental units and 9 ownership units that would otherwise be occupied by local residents (total resident housing loss of 7-18 units),an $11 increase in monthly rent of resident units,and a $6,500 increase in home prices.The study found that the amount of the fee justified by the data to mitigate the impact on the availability of workforce housing units in Estes Park would be an annual fee of up to $1,390 per unit or a nightly rental fee of up to $8.32 per unit,based on the average rental days per year of 167.On average,this would equate to as much as 2.5%or 2.6%of gross receipts from the rental of these units. Discussion was heard and summarized:questioned how a fee would be utilized and stated the Town should have a plan for how the funds would be used;what fund would the fees reside;could the funds be placed in the workforce housing fund established in 2021;questioned the validity of the fee as it relates to lABOR;questioned if the funds could be provided to the Estes Park Housing Authority (EPHA)to leverage other resources at their disposal;the report demonstrates short-term rentals have an impact on workiorce housing and those causing the impact should be assessed the fee;the fee would be most likely a pass through to the rentals of the properties;the Town has been planning for workiorce housing through the creation of the workforce housing policy; stated the current AMI in the housing policy should be reconsidered and focused on the lower 80 —100 AMI rather than the current level of up to 175 AMI;the fee would impact RECORD OF PROCEEDINGS Town Board Study Session —March 1,2022—Page 3 expenditure of funds,and the Town can require additional stipulations on a case-by- case basis.Board discussion was heard and summarized:questioned if a deed restriction could be placed on a property to ensure childcare continues;the stipulations should be on a case-by-case basis;suggested a six-month report for completed projects rather than 12 months;and overall Board consensus with the addition of stipulations. Staff would prepared a policy for the Board’s consideration at an upcoming meeting based on the feedback received. There being no further business,Mayor Koenig adjourned the meeting at 8:15 p.m. ckie Williamson,Town Clerk