John Scarffe, Nederland. The Nederland Board of Trustees listened to 27 area residents discuss a proposed ordinance regarding short-term rentals (STRs) during a regular meeting at 7 p.m. on Tuesday, June 4, 2019, in the Nederland Community Center. The board also approved the consent agenda, which included allowing the Nederland Downtown Development Authority (NDDA) to borrow $16,400 from the town, to be paid back from 2017 debt authorization funds, for the 2019 beautification project.  

The scope and budget requests authorization of NDDA TIF funds to be provided to Elizabeth Allen dba Coloring Colorado in Fiscal Year 2019. The board approved $10,000 for the beautification project in 2018, plus an additional $1,800 for the flower basket addendum project. Trustee Kristen Conrad said she is excited the town will have beautiful flowers again this year.

The board discussed STRs during a work session at 6 p.m. before the regular meeting and decided that staff will bring back another STR draft and will also look at zoning regulations. During the regular meeting, Mayor Kristopher Larsen said the board won’t be voting on STRs tonight, even though it was listed as an action item. The trustees are finding things they agree on that need work.

“The Nederland Municipal Code (Code) contains a regulation related to rental of residential property,” according to the agenda information memorandum. This regulation requires property owners to apply for a rental license for certain residential rentals. 

The rental licensing section of the code was last revised in 1999, and since that time, the town has seen significant growth of the economy and the expansion of short-term rental housing. It is believed that the expansion of short-term rental housing has created an adverse impact to the health, safety and welfare of the community, including an increase in housing costs and depletion of residential housing opportunities for persons seeking full-time accommodations, according to the memo.

The board has received significant public comment expressing a desire to preserve the residential character of the town and to preserve the long-term housing stock. The proposed short-term rental ordinance reasonably regulates short-term rentals of residential property, according to the memo. 

The regulation of short-term rentals preserves the residential character of the town and establishes operating standards for short-term rentals, according to the memo. The trustees and other town boards have participated in discussions related to the regulation of short-term rentals since 2016, according to the memo. 

“Short-term rental means the rent or lease for any form of consideration of a dwelling, dwelling unit, accessory dwelling unit, or portion of any dwelling unit to a particular person or persons for periods of time less than thirty days. Short-term rental does not apply to or include commercial hotels or motels. A short-term rental is a use that is accessory to such dwelling or dwelling unit."

In December 2018, the board appointed an advisory committee comprised of trustees, town staff and planning commissioners to further research modifications to the Nederland Municipal Code and then presented their findings to the board in February, according to the memo. During the March 19, 2019, regular meeting, the board again discussed adopting short-term rental regulations, and staff was directed to draft a short-term rental ordinance to meet four regulations. 

(1) Only the primary residence may be licensed as a short-term rental. (2) A whole-house short-term rental is capped at 30 days per year. (3) If the primary resident is present, a portion of the house may be short-term rented without a cap. (4) The Board is considering potentially allowing existing accessory dwelling units that are detached to be rented as a short-term rental, and the Trustees agreed that long-term rentals would be permitted in all structures. Long-term rental means a rental of 30 or more consecutive days.  

Based on this direction, staff presented a draft short-term rental ordinance for the board’s consideration and additional discussion at the April 16, 2019, regular meeting, and later the board directed staff to bring back the short-term rental ordinance for an action item on May 7, 2019, when the trustees took public comment related to the draft ordinance. The meeting adjourned at 11 p.m. without discussion or action on the draft short-term rental ordinance, and the board then directed staff to place the draft short-term rental ordinance on the work session and regular meeting agendas for June 4. 

At the regular June 4, 2019,  meeting, Mayor Larsen said that during the work session the trustees agreed to send the draft back to staff to consider the number of days an STR can be rented by a person who isn’t present and how zoning regulations could be incorporated. Staff should also consider what to do with properties operating as whole-house STRs and are not owned by Nederland residents.

Trustees summarized their comments during the work session. Alan Apt said STRs definitely have benefits for people who want to earn extra money, but he also is concerned about people who live next to them as STRs can have negative impacts. They must find a balance between those who need the income by reducing the negative impacts. 

Mayor Pro-Tem Julie Gustafson said she added a requirement in the list of things expected to include information about living in bear country, which could curb problems before they happen if people understand they can’t leave their coolers and trash outside. She also sees the benefit of adding enforcement in the ordinance, so neighbors feel less of a responsibility to call the police with problems. 

“We have a lot of ordinances that could address problems, but it doesn’t always feel good to be the neighbor who has to call that in,” Gustafson said. The enforcement piece would lay out the number of violations and would provide a reason to revoke the license if necessary. 

Jonathon Baumhover said he discussed the importance of not being restrictive, and the idea of looking at it as a land-use issue to explore various interests. He is interested in different classes of licenses for a primary residence and non-primary residence. 

Kristen Conrad said the 30-day limit is out, and it’s not viable. It would cost too much to be in that business. She is concerned about primary residents and depending on this income to stay in this town and not putting them in a position to have taken away from them what brought them here. 

The town must be very clear on how many strikes will be allowed. It should try to empower people on both sides, Conrad said. The town has a very small enforcement force, so she is concerned where on the priority list that is going to be. We must protect primary residents and find a two-step process for investment on STRs. 

James Rawthorne said he would like rules to apply to long-term rentals too. They have been a problem with neighbors who have trash and garbage.

During public comment, six area residents supported the ordinance or incorporating zoning regulations into the ordinance. Some of the rentals in Big Springs are regular family houses, and residents have been asking for regulations, especially in residential areas. School teachers and staff have trouble finding places to live.

Most of the summer weekends, they have three to six cars coming up the drive at night. “A lot to our town will be hurt if we don’t limit STRs.”

One STR is empty. The investors are not looking at the big picture. Little bits of town are dying like Happy Trails and Sundance.

It makes sense to allow STRs in commercial areas, and 30 days is very important in residential areas. “I support zoning for STRs.” Address noise, parking and enforcement. 

Two Nederland residents supported finding the right balance. One regularly meets with people who can’t find housing but wants her neighbors to be part of the community and volunteer. She likes the idea of balance and accommodating people who need to rent out their house to stay in the community.

Part of the common welfare of the town is individual rights, but cities that don’t regulate STRs may see continued growth in STRs. Is this benefiting the culture of the community, or is it just picking on people who are using STRs? Keep looking at this to find that balance.

Seventeen members of the public opposed the ordinance, although most agree that STRs need some regulation. Comments included that for the last year town staff has been telling people STRs are illegal. This is untrue. STRs were permitted in town codes in 1976 and updated in 1999.

The town requires residents to apply for a license, and 36 applications were submitted. They were told that the town didn’t have a fee set up. The board subcommittee members said they would never take anything away from residents.

One resident has been running an STR for 15 years, and relies on the income, but doesn’t want to lose the culture of Nederland. The negatives can be mitigated. Long-term rentals have been the problem houses. The ordinance is getting closer to something that is reasonable.

It would be a bad idea to eliminate whole-house STRs now and would have unintended consequences. The board must be careful doing anything about primary residences.

We’re still hearing a lot of assumptions. You’re getting money spent in this town by STR owners, and we feel like we are a part of the community, said one homeowner.

Renters want to ski, shop and have fun in this town. The shortage of housing is blamed on STRs, but they’re paying property taxes to this town. That is the fundamental ambiguity. 

I love this town and would appreciate that we feel welcomed, which I don’t, now, stated one resident.

A resident bought a second home in Nederland five years ago, and nothing was in place prohibiting STRs. He wouldn’t have bought the property if he couldn’t use it for an STR. He recommended grandfathering in one STR per family. 

He lives in Boulder and comes up on weekends, and then uses Air B&B. We wouldn’t be able to have these business establishments in town without tourism. He is open to regulating both short-term and long-term rentals.

A resident who owns general commercial real estate and has a long-term and a short-term rental, said, “What I hear from most people is that you shouldn’t limit it to 30 days. I don’t feel like the board should be regulating it. You’re telling me I can’t do a vacation rental? That’s insane to me.” 

A man’s salary just barely covers the rent for his house, so he started renting out a whole- house STR, and he is putting his son through college. “I don’t want Nederland to change radically.” 

In the next eight years, two million people are going to move into Colorado. He rents out his STR for 130 days a year. “The 30 days was killing me. If I croak, can I give my license to my son? I appreciate what you guys are doing.”

Another resident said they don’t want to be treated as second-hand residents because they don’t live here full time. They want their children, friends and family to come up here and don’t want nosy neighbors. 

“We want to be regulated and have a property manager in town and won’t rent to anyone who is a partier. We would like the opportunity to have someone living in our house in the winter when we’re not here.” 

Trustee Dallas Masters quoted studies and reports that show depletion of housing due to STRs. The report was finally found, and it contradicts the whole premise of the draft ordinance. The report from Iceland concluded that part-time residents do not take away from the supply of housing. 

A long-term renter who manages STRs said: “It is imperative for you to know we are the community, and this is how I make my living, and I hope you will continue to work with us. We want to find necessary regulations that feel fair to everybody.”

Following public comment, Mayor Larsen said he will work with town staff on enforcement, number of days, zoning options and occupancy limits. He will target two weeks from now as a discussion item and an action item in July. 

The board had a public forum on June 11, 2019, on the Intergovernmental Agreement with Boulder County. 

(Originally published in the June 13, 2019, print edition of The Mountain-Ear.)