John Scarffe, Nederland. An ordinance extending a temporary moratorium on the submission, acceptance, processing and approval of accessory dwelling unit applications received approval during a regular meeting of the Nederland Board of Trustees at 7 p.m. on Tuesday, April 2, 2019, in the Nederland Community Center. The board also approved an ordinance imposing a temporary medical and recreation marijuana dispensary moratorium.

Initially listed as an action item on the agenda, the board moved to the consent agenda consideration of an ordinance extending a temporary moratorium on accessory dwelling unit (ADUs) applications and then approved it. The moratorium was originally set to go into effect on November 17, 2018, six months after its original adoption.

On May 17, 2018, the board established a new section of the Nederland Municipal Code permitting and regulating ADUs. The trustees met with the Planning Commission in a joint work session on August 22, 2018, to discuss ADUs and short-term rentals (STRs) and directed staff to make changes to the zoning code and to enact regulations concerning short-term rentals, which has been discussed by the town board and worked on by staff for years.

The board decided that it makes the most sense from a policy perspective, as well as for clarity to homeowners, to look at both the ADU and STR regulations concurrently, so an ordinance was adopted imposing a moratorium on the submission, acceptance, processing and approval of applications for ADUs to allow town staff and the board to collectively develop and implement consistent regulations concerning ADUs and STRs.

During public comment, area residents addressed their need for STRs. Karen Cobble owns property in Nederland but lives in Boulder and has had a host of short-term guests. People in Boulder come to stay, including the ice queen of Frozen Dead Guy Days. Her guests spend money in town, and she purchases everything from Ace Hardware, Cobble said. She has a constitutionally protected property right to use the property as a vacation rental.

SRTs are not to blame for the housing shortage, and Boulder has a license application that comes with regulations. Cobble has conversations with business owners about how their businesses are supported by the tourists.
“I hope we can work together to address complaints and avoid a class-action law suit against the town,” Cobble said.

Dana added that if STRs are not allowed in Nederland, retail businesses, workers and constructors will be impacted. Dana asked the town to quantify the activity tourists are bringing through here and asked that the town look into a 7 or 9 percent tax the town is missing. People wouldn’t mind paying that, or people will be forced to move to Boulder.

Scott Messersmith, of Gilpin County, said he has been a part of this community for 20 years. He feels very strongly that STRs are an honest, good business that support this town in many ways including hiring electricians and cleaners, and he buys material in town and has guests from all over the world.

On a four to one vote, with two trustees absent, the board approved an ordinance imposing a temporary medical and recreation marijuana dispensary moratorium. During public comment at two recent board meetings, area residents have stated that they oppose the addition of another medical or recreational dispensary in town, according to background. The trustees discussed the situation at their March 19, 2019, meeting and directed staff to include this item on an April meeting agenda.

A local jurisdiction may impose a separate local licensing requirement as a part of its restrictions on time, place, manner and the number of marijuana businesses, according to background. Nederland has four licensed marijuana businesses. The town code doesn’t provide a cap on how many licensed marijuana businesses will be allowed in Nederland.

Mayor Pro-Tem Julie Gustafson said this discussion was reactionary to hearing about the closure of Happy Trails and the use of that building. The town has no application in play at this time.

“We have to look at what our role is when we permit licenses, and we have to be totally objective. Unless the applicants have legal problems, we don’t have legal standing to deny these applications, so we should treat them the same way as liquor licenses. I don’t think the reason in front of us tonight is a good one.”

Trustee Kristen Conrad disagreed. Space for a marijuana business is at a premium. Prices have been driven up by a small amount of space in a tiny town on a major highway. “We should at least take six months to look at it because it is exceptional and different,” Conrad said.

Gustafson said that one of the most important things the board is responsible for is to pass this moratorium and discuss this issue. “It is reaction, but that’s what gains energy, so it’s not a reason not to look into it. Putting a moratorium on this is easy to do because I don’t think we know what our options are,” she said. Six months is a reasonable time, but she wouldn’t want it to go on indefinitely.

During public comment, David Ween, of Boulder, who has owned the former Happy Trails building on Highway 119 for 18 years, said that he has tried hard to keep the business. On the guidance of town staff, a dispensary isn’t allowed there, but a local Boulder-County owned marijuana business with local ties is very interested in being there, and he just found out about it through the rumor mill.

He asked if they could be allowed to go through the process even if a moratorium passes. A Big Springs resident for seven years, and an employee of Terrapin Care Station, in Boulder, said the company is a self-funded cannabis company and has been a member of business and neighborhood communities.

The company provides critical medicine to patients and has provided donations to five different nonprofits. Terrapin uses LE lights and helps clean up after large events. “We will continue to set a positive example in Nederland,” he said.

Apt suggested that Terrapin be allowed to proceed with the application, but he supports the moratorium. Most of the board agreed that the community has strong support for a moratorium.

Masters said he is not in favor of a moratorium. “It is just bad policy. What happens when a business goes out? Who gets the spot? The town doesn’t have control over what kind of business goes in.”
If another marijuana business comes in, and if the market doesn’t support it, it will go out of business, so Masters will not vote for the moratorium or put a cap on the business. Gustafson said that to her this just makes sense.

The board approved the moratorium with Masters voting against it. The board met on April 16, 2019.

(Originally published in the April 18, 2019, print edition of The Mountain-Ear.)