The URL can be used to link to this page

Home My WebLink AboutPACKET Town Board Study Session 2023-04-11 April 11, 2023 5:30 p.m. – 6:45 p.m. Board Room 5:15 p.m. Dinner No public comment will be heard This study session will be streamed live and available on the Town YouTube page at www.estes.org/videos 5:30 p.m. Business/Short Term Rental License Renewal Annual Report. (Town Clerk Williamson) 6:00 p.m. SB23-213 Land Use. (Town Attorney Kramer) 6:35 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 concerning agenda items or other Town matters may occur before this meeting at approximately 5:15 p.m. AGENDA TOWN BOARD STUDY SESSION Page 1 Page 2 TOWN CLERK’S OFFICE Report To: Honorable Mayor Koenig Board of Trustees Through: Town Administrator Machalek From: Jackie Williamson, Town Clerk Date: April 11, 2023 RE: Business/Short Term Rental License Renewals Annual Report. Purpose of Study Session Item: To provide an overview of the 2022/2023 renewal process for business, bed & breakfast, and vacation home licenses. Town Board Direction Requested: Direction on the residential cap and other potential regulation changes to vacation homes and bed & breakfasts the Board would like to address. Present Situation: Renewals for 2023 were issued via email for all licensed businesses and short-term rentals on December 1, 2022, with a deadline of renewing by January 31, 2023. Reminders were sent on December 30, 2022, January 13, 2023, and January 27, 2023. Currently the Town has 1406 business licenses, 14 bed & breakfast licenses, and 511 vacation home licenses with 322 residentially zoned under the current cap The municipal code states the cap shall be reviewed annually by the Town Board, in or near the month of April. Since the end of 2022, the Town has received a number of inquiries in relation to the licensing of residentially zoned properties as a bed & breakfast in lieu of a vacation home license. This appears to be a method to licensing the properties and circumventing the vacation home license cap. Questions from property owners revolve around ways in which their property can be improved to rent out the entire home yet have a separate area for the owner to reside such as adding breezeways to connect buildings, owner occupation in accessory dwelling units, building owner suites separated from the main house by a garage, etc. Proposal: Staff requests Board direction on maintain the residential vacation home cap, bed & breakfast regulation clarifications, and interest in any other potential regulation changes to be brought forward at an upcoming Town Board meeting. Advantages: Page 3 •Reviewing the cap would meet the requirements set forth in the municipal code. •Additional clarifying language for bed & breakfast would provide staff and property owners with a clear understanding of the use. Disadvantages: •The Board would not meet its obligation under the municipal code to review the residential vacation home cap on an annual basis. •A lack of clarity on the use of a residential property as a bed and breakfast may continue. Finance/Resource Impact: The item would require staff time to review and propose additional code language and if approved the cost to codify. Level of Public Interest Low however there is likely a strong interest from residential property owners wishing to operate a vacation home in a residential zoning districts. Attachments: 1. Presentation – To be provided during the Study Session. Page 4 4/12/2023 Business/Short Term Rental License Renewal Annual Report Town Board of Trustees April 11, 2023 Why Are We Here? To review the 2022-2023 Annual License Renewal process. Discuss residential vacation home cap per the requirements of the Municipal Code. Discuss current status of Vacation Home and Bed & Breakfast Licenses. Review the Workforce Housing Regulatory Linkage Fee. Discuss future changes/issues. 1 2 Page 5 4/12/2023 Outline 1.Business Licenses 2.Vacation Home Licenses 3.Bed & Breakfast Licenses 4.Workforce Housing Regulatory Linkage Fee 5.Board Questions/Discussion Business Licenses 2022 Overview 1516 licenses as of 12-01-2022 171 (67 in Town) licenses inactive throughout 2022 3 in Town licenses relocated in 2022 22 in Town licenses transferred ownership 2023 Renewals 1397 licenses as of today 29 in Town licenses were delinquent as of 02-01-2023 6 Citations were issued for businesses which did not renew by 02-15-2023 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 Business Licenses- 2012-2022 Total Licensed In Town Out of Town 3 4 Page 6 4/12/2023 Vacation Home Licenses Current Cap 322CommercialResidentialTotal Registered Town Limits Year 181041222012 211221432013 231391622014 291631912015 642032672016 952823772017 1043194232018 1163084242019 1413224632020 1583224802021 185321*5062022 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 Vacation Homes – 2012-2022 Total Registered Town Limits Residential Commercial *1 license became inactive in 12/2022 Residential Vacation Home Cap Applications Processed Waitlist by Year 82018 162019 152020 142021 82022 92023 Waitlist 36 Decreased by 24 since moratorium 10/2021 Next Application on Waitlist Received 02/2021 Waitlist 36 Decreased by 24 since moratorium 10/2021 Next Application on Waitlist Received 02/2021 Reasons for waitlist attrition Withdrawals, transfer of ownership, loss of interest, long-term renter Board direction/discussion on residential cap 5 6 Page 7 4/12/2023 Vacation Home Transferability Not eligible to transfer Applications Processed Transfers by Year n/a382018 n/a422019 n/a342020 4122021 9162022 1822023*0 5 10 15 20 25 30 35 40 45 2018 2019 2020 2021 2022 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 04/11/2023 Inactive Vacation Home Licenses Reasons licenses have gone inactive Workforce Housing Regulatory Linkage Fee Increase in lodging tax – Ballot Issue 6E Too many regulations No longer operating Not actively used New owner Overdue transfer Expired license CommercialResidentialTotal Inactive Licenses Year 1127382017 1425392018 620262019 919282020 815232021 2510352022* *Shift due to incomplete applications (1 Res, 13 Com) 7 8 Page 8 4/12/2023 Bed & Breakfast Licenses 0 5 10 15 20 0 5 10 15 20 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Vacation Homes – 2012-2022 Total Registered Town Limits Residential Commercial CommercialResidentialTotal Registered Town Limits Year 0002012 0112013 2242014 1342015 1452016 1672017 0442018 017172019 015152020 014142021 015152022 Bed & Breakfast Licenses Increased Interest in Bed & Breakfast licenses A result of the cap and waitlist moratorium. How property improvements can maximize renting options: Owner suites Owner occupation in ADUs Breezeways to connect buildings A need to clarify the difference between Bed & Breakfasts and Vacation Homes for both owner and staff More direction on owner residency Commercial Property Tax Rates State requirements C.R.S. 39-1-102 Lodging accommodations for a fee Minimum 1 meal provided per day* Maximum 13 sleeping rooms Has an Innkeeper on/near property** Mixed-use property classification Based on square footage of rental area Must meet the State requirements *Not currently addressed in Town regulations ** Town regulations are more restrictive 9 10 Page 9 4/12/2023 Workforce Housing Regulatory Linkage Fee 8 Exemptions were requested and granted. Properties must be zoned CO Outlying Commercial, license was issued when allowed in the CO zoning district, has not been used for household living prior/since being licensed. 15-20 Complaints/comments were received regarding the Workforce Housing Regulatory Linkage Fee through the renewal process. 1 license expired for failure to remit the fee. Discussion Items Consider adjustments to the residential vacation home cap. Consider refining definitions for short term rentals and updating terminology to align with other jurisdictions, as well as alleviate confusion with owner occupied vacation homes. Any additional refinement to vacation home requirements, i.e. sales tax requirement, minimum usage, reporting during renewal, etc. Consider aligning the Town’s bed and breakfast definition with the State definition for consistency. If so… Require additional application requirements such as a drawing. Require a meal to be served Require full time residency rather than only when occupied – primary residence 11 12 Page 10 4/12/2023 Board Discussion/Direction & Questions Issues: - No true onsite management interacting with guests - No meals provided - Linkage fee does not apply - Fire pits and other solid fuel devices allowed with onsite management - Confusion with neighbors – Vacation Home vs Bed & Breakfast 13 14 Page 11 Page 12 4/12/2023 SB 23-213 – Land Use Town Board of Trustees Study Session April 11, 2023 Outline 1.Introduction 2.Scope of the Bill 3.Effect on Town Codes 4.Board Direction 1 2 Page 13 4/12/2023 Introduction Land use has traditionally been an aspect of local control. Bill development in 2023. Bill’s Classification of Cities Urban Municipalities: within a metropolitan planning organization Rural Resort Job Center Municipalities: jobs and population requirements, plus current regional transit service with at least 20 trips per day Non-Urban Municipalities: others with over 5000 in population 3 4 Page 14 4/12/2023 Bill’s Classification of Cities Bill’s Classification of Cities 5 6 Page 15 4/12/2023 Impacts Inapplicable to the Town Middle Housing Transit-Oriented Development Key Corridors Local Housing Needs Plan Requirements Greenfield Development Analysis Impacts on the Town Accessory Dwelling Unit Regulations Model Code Minimum Standards Occupancy Limits Water Loss Audits 7 8 Page 16 4/12/2023 Impacts on the Town: Accessory Dwelling Units Introduced Bill: Minimum Standards Current Development Code Anywhere a single-family home is allowed (Adds R-2, RM, A, A-1, CD, O) RE, E-1, E, R, R-1 (Not R-2, RM, Nonresidential) Use by Right Only the same as apply to single family units in the zone Same as principal unitsDesign standards generally 800 s.f. or 50% of the primary, whichever is greater 800 s.f. or 49% of the primary dwelling, whichever is less Size No side or rear setbacks over 5 feet can be required, except for health or safety. Depends on zone district. Front (15-50 ft.) Side (10-50 ft.) Rear (15-50 ft.) Setbacks Same as single-family homeFamily, or up to 4 unrelatedOccupancy Limit Impacts on the Town: Accessory Dwelling Units Introduced Bill: Minimum Standards Current Development Code No local laws that “cumulatively create unreasonable costs or delays” or that make the ADU “infeasible” Must meet Town standards and processes Cost and Time “Feasibility” No local laws that “interfere with the intent” of the bill. Must meet Town standards and processes “Interference” with statute DOLA has discretion to make more rules to “update” the minimum standards. Must meet Town standards and processes Further rules, undefined and unlimited. 9 10 Page 17 4/12/2023 Impacts on the Town: Accessory Dwelling Units Introduced Bill: Minimum Standards Current Development Code No impact (only Urban Municipalities) 1 space for each bedroomOff-street parking If a single family home could be built there, an ADU would be allowed as a use by right and under the same design standards. If does not meet minimum lot size for zone, allowed as a conditional use (or, if at least 70% of required size, allowed with a housing covenant) Lot area No impactProhibited in ADUsVacation Homes Impacts on the Town: Other Introduced BillCurrent Code No limits that differ based on the relationships of the occupants Household living defined as a family unit or 8 or fewer unrelated individuals Occupancy Limits No impact2 per room, plus 2, and no more than 8 without further process Occupancy Limits for Vacation Homes Cannot treat differentlyNot treated differentlyManufactured housing 11 12 Page 18 4/12/2023 Impacts on the Town: Other Water Loss Audits: Would be required, but already conducting one. Additional elements within new comprehensive plans. Board Direction: Options Take no position. Direct staff to advocate on the bill. Support Support with amendments Oppose Oppose unless amended Direct staff to bring back a resolution for the Town to take a formal position. 13 14 Page 19 4/12/2023 Questions & Discussion 15 Page 20 April 25, 2023 • Joint Study Session with Estes Park Housing Authority on 6E Funds. May 9, 2023 • Electrical Vehicle Infrastructure and Readiness Update Items Approved – Unscheduled: • Planning Fee Schedule • Proposition 123 Introduction • Governing Policies Updates • Stanley Park Master Plan Implementation • Downtown Loop Updates as Necessary Items for Town Board Consideration: None Future Town Board Study Session Agenda Items April 11, 2023 Page 21 Page 22