City Council last week adopted a change to effectively prohibit residential short-term rentals in the secondary business district.

Council requested the changes to the zoning code that would prohibit short-term rentals in the WB-2 secondary business zone.

Planning Director Dave Taylor said in order to make the change it was necessary to update the zoning code so that short-term rentals can still operate in the WB-3 general business district as a permitted use.

While the WB-2 does not allow residential units outside of a PUD, since the permitted uses for the zone lists “hotels, motels, and other hospitality and entertainment uses” short-term rentals could be allowed in existing dwelling units or with a new PUD.

Short-term rentals, or vacation rentals, are considered a residential use under the zoning code.

Prior to the vote, Council asked if the planned unit development overlay regulation should be modified to prohibit creating short-term rentals with a PUD in the WB-2 zone. Taylor said it would not be possible to eliminate short-term rentals from the list of what can be created using a PUD because those regulations apply to all zoning districts including those where short-term rentals are allowed.

“Anyone could use a PUD and ask for [short-term rentals] while making a case for why it’s needed,” he said. “We’re eliminating it as a use by right and making it known that short-term rentals aren’t going to fly in the WB-2.”

Changes to the code also include modifications to the definitions hospitality and entertainment, hotel and residential short-term rental.

The definition of “hospitality” will be amended making it clear that short-term rentals would not be allowed as a type of commercial “lodging” use.

The definition of hotel is planned to be changed to say that a hotel must be under single management and advertised as a hotel, and that short-term rental units do not qualify to be a hotel even if they have more than five units.

The WB-3 zone will also be modified to say that permitted and conditional residential uses in that zone include short-term rentals.

Short-term rentals are a permitted use in the resort residential and the resort business zones.