06-26-2017 Council Work Session Packet

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To: Chair Leskinen and Planning Commission Members Jessica Loftus, City Administrator From: Jeremy Barnhart, Community Development Director Date: November 16, 2015 Subject: #15-37S% City of Orono, Text Amendment: Vacation Rentals Public Hearing PC Exhibit D ApplioWon Summary. The rental of private property for vacationers may impact existing neighborhoods due to increases in traffic, noise, and activity during irregular hours. Stc#Rewmmendatlon: Staff requests review of issues and direction prior to Proceedina. Vst of Exhibits Draft Ordinance Background The use of property for short term rentals appears to have been growing over the past several years, in part due to the proliferation of AirBnB, VRBO, and Home -away websites, where travelers can search for homes based on local amenities, including Lake Minnetonka. Identified concerns with the rental of rooms or houses in residential areas include absentee owners, loud parties, traffic, parking, overcrowding, and safely of renters. The City has received some complaints; vacationers host events at late hours that conflict with neighbors not on vacation; renters park in the street or have parties that spill off of the property, depositing trash and similar items in the yard. When this issue was originally raised, staff identified 8 homes in the city listed on the VRBO website. A notice was sent to these owners, posted on the website, and the city newsletter reminding owners to "be a good neighbor". The City does not have a rental ordinance, a mechanism to Inspect property annually to verify life safety requirements of the building code are met, therefore, the safety of vacationers in private homes Is not verifiable. The attached first draft is intended to Initiate discussion of the issues and possible solutions. Staff suggests regulating this issue through a business licensing process, where a license is required annually. The Planning Commission is asked to review the ordinance, and identify other concerns not addressed. With Planning Commission direction, staff will prepare appropriate changes, to be reviewed at a future meeting.