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Concerns raised about impact of vacation rentals on housing

Katheryn Houghton Daily Inter Lake | Hagadone News Network | UPDATED 8 years, 4 months AGO
by Katheryn Houghton Daily Inter Lake
| September 21, 2016 7:15 AM

Kalispell City Council has asked for another work session to discuss zoning for short-term vacation rentals after public comment Monday illuminated a new concern tied to the recent controversial topic — a fear short-term rentals could remove long-term housing possibilities.

During a Sept. 12 work session, council asked city staff to look for unintended consequences connected to proposed zoning amendments aimed at regulating vacation rental operations. While the city’s current zoning rules prohibit property owners from providing the rentals, recent estimates from web-based tracking services found 102 short-term rentals in the greater Kalispell area and 50 within city limits, according to planning staff.

At the Sept. 12 work session, council agreed city staff should continue to adjust the proposed ordinance before bringing it forward as an action item.

However, during the regular meeting Monday evening, City Manager Doug Russell told councilors the city had received public concerns touching on an issue the city hadn’t largely focused on during research.

“What some of the communities are talking about are the removal of a significant number of houses from the housing market and the impact on affordable housing,” Russell said. “We have seen some communities take action to limit that.”

During public comment, Village Greens resident Fred Zavodny approached the council holding a petition with 355 signatures asking to exempt the residential neighborhood from any action permitting short-term vacation rentals. Zavodny rehashed concerns that vacation rentals could create a feeling of instability in the residential neighborhood and negatively impact property values. He also addressed a new concern city planners had been hearing for days.

“Even though I’m advocating for Village Greens, any zoning text amendment that allows short-term rentals throughout the city is in opposition to the intention … of the adopted growth policy,” Zavodny said. “Removing living units off the rental market in favor of [vacation rentals] is contrary to everything that local government and advocacy groups are working toward in terms of affordable and available housing.”

City Attorney Charles Harball said residential neighborhoods could amend their homeowner covenants to restrict the use of short-term rentals instead of relying on city zoning. However, some council members thought the newest concern was worth further conversation.

Councilor Wayne Saverud said he would like to see the issue go to another work session. Council member Phil Guiffrida agreed.

“Whenever there’s more information presented after the fact, we owe it to due diligence to go through it, and look at what other jurisdictions have done,” Guiffrida said. “Especially [since] low-income property has been mentioned now by the City Manager from his research and a member of the public.”

Mayor Mark Johnson added that there was no rush to create bad policy.

The next council work session will take place in October.

DURING Monday’s meeting, council also adopted a resolution calling for a public hearing over a proposed update for development in south Kalispell.

Public Works Director Susie Turner said the South Kalispell Facility Plan Update is a supplement to the adopted 2008 Water and Wastewater Facility Plan which would provide more room for the area to grow.

“There’s an increasing potential for new developments in the south Kalispell area,” Turner said.

She said the next process for adoption would be the public hearing scheduled for Oct. 17.

For more information regarding the Wastewater Facility Plan Update, visit http://www.kalispell.com/mayor_and_city_council/documents/H1.Reso5782-ROI-FacilityPlanUpdate.pdf.

Reporter Katheryn Houghton may be reached at 758-4436 or by email at khoughton@dailyinterlake.com.

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