John Scarffe, Nederland.  About 30 people attended the regular meeting of the Nederland Board of Trustees meeting at 7 p.m. on Tuesday, July 17, 2018, in the Nederland Community Center to discuss an ordinance regarding a proposed Short-Term Rental Licensing Program. They had to wait about three hours before the agenda item came up for discussion.

“Short-term rentals (STR’s) have been in existence for years in the Nederland area, despite a lack of associated regulations to address impact to neighborhoods and infrastructure,” states background information. The Nederland Planning Commission (PC) continued a hearing to consider a draft ordinance for a Short-Term Rental Licensing Program on June 27, 2018.

The Commission voted to send a revised draft ordinance to the Board of Trustees for consideration. The Commission previously discussed short-term rentals at meetings on January 24 and April 25, 2018. Before that, the Commission discussed the item in 2017 at the Joint Work Session on October 25 and April 26, and previously at the Joint Work Session in August 2016.

In the interim, the STR market proliferated exponentially, with associated impacts for housing affordability and availability, according to background. The Commission opened a public hearing regarding the consideration of an STR ordinance at its May 23, 2018, meeting.

After considerable public input and then a subsequent discussion by commissioners, a vote was taken to approve the continuation of the public hearing to the June 27 meeting. After considerable public comment followed by a discussion by the commissioners at the June meeting, the PC voted to remove the primary residence requirement from STRs and directed staff to change the language to allow only one STR per licensee/applicant described as an individual/family/legal entity.

The draft STR ordinance includes language in Sec.6-292 (10) requesting a completed Short-Term Rentals Self-inspection form, which will be provided by the Town Clerk, based on the stipulations in the ordinance, according to background. “The PC also recommends that a ‘Good Neighbor Guideline’ be included in the applicant packet.”

“Short-term rental” means a residence or portion thereof used for lodging accommodations for transients for a period of less than thirty consecutive days per transient renter, according to background. Legal review noted that STR regulations are typically contained in the Business License section of the Municipal Code, as seen across Colorado.

On May 17, 2018, the Board of Trustees adopted an amendment to municipal codes to permit and regulate accessory dwelling units (ADUs). “’Accessory dwelling units’ means a second dwelling unit created on a lot with an existing residential structure such as a house, attached house or manufactured home, or within said existing principal residential structure, which shall be a distinct and separate housekeeping unit.”

The process to gain approval for an ADU will be similar to a land use application. The ordinance will go into effect November 17, 2018, which gives staff adequate time to finalize the process and paperwork.

“Since the draft STR ordinance has been publicly posted, input from the community suggests that the ordinance is confusing. Staff recommended removal of the phrase ‘or other detached accessory structures’ for clarity.

“To state that ADUs are not eligible for short-term rentals is redundant since this language is included in the definition of ADUs in Ordinance 785. Other concerns expressed by community members include limiting the density of STRs in neighborhoods and limiting the number of STR occupants allowed.”

After a brief introduction during the meeting, the Board allowed public comment. Laura King said she exchanged email with Town Administrator Karen Gerrity to clarify terminology. “I think there is a miscommunication. If a person has a secondary residence, they will need to get a license like a business in town.”

“A person would have to choose between ADU as a long term. That’s up to you to clarify whether you are trying to regulate rentals in people’s homes,” King said. “Are we talking about two different things the whole time? I think that’s a major problem. Is everyone on the same page?”

Atashnaa Medicine Shield Werner said she is a 40-year veteran of the Nederland area. “I support the recommendations of the Planning Commission, and I’m asking you to take into consideration my comments.”

From public comments, she has heard three concerns, including the quality of long-term renters and the reason to support short term over long term. “You’re taking a risk as a private property owner. It’s up the owner to do their due diligence.”

Werner knows of three rental properties, which had excellent tenants, but when they left it was totally trashed. “A big issue is the term ‘primary residency,’ which I support.” Regarding ownership of family cabins in Old Town, the solution would be to grandfather those in.

Kelly Hess asked for stricter regulations. In her neighborhood, two houses are full-house rentals composing 12 percent of houses on the street, and it’s only going to grow.

Many towns are finding the need to regulate STRs, she said. Zoning laws allow you to know what you can do with your property. On any weekend you can have four or five cars. “Why are my rights as a property owner being denied?”

Planning Commission Chair Roger Cornell said that the best thing the Board did is to continue this discussion. The Planning Commission has worked with the idea that they are here and should be part of the community.

The very good points of the draft ordinance include licensing, inspection and the biggest point was the residency requirement, Cornell said. The Town has not had enforcement for ADUs recently, making it hard to correct the issue and start over again.

For people who had cabins up here and came in the summer, then did short-term rental, one option is that if you make the residency requirement, then others would become a non-conforming use. “We should think about a bed tax.”

Comments against the ordinance included the following. Kim said: “There were no laws when we came here. If the town does this, we would have to move out and that would destroy our family’s dream.”

“It’s not big enough for a long-term rental and by nature they leave. If you have a bad experience with a long-term renter, you have to go through the process to evict them.”

“We’ve never had an issue with noise. We buy, eat and recreate locally and recommend the same to renters. Short-term renters are not the cause of the shortage. Shift the focus to marijuana grow houses, the real elephant in the room.”

Kim’s husband Mike said they bought their home nine years ago and there were no ordinances, and their rental was a major contributing factor to purchase the home. “If this ordinance is passed, that’s changing the rules in the middle of the game.”

“We won’t be able to pay our mortgage any more, and we will have to sell. I assume any person purchasing the home would be interested in renting.”

“If the aim of the board is to find more long-term rentals in the town, this isn’t the way to do it. The Town assumes no risk with this. The town’s not going to help, but Air B&B reviews renters.”

Sharon Thompson said her ADU can accommodate someone with a suit case but not a long-term renter. The only units being excluded are ADU, and she has been living on STR income since 2011 and wants to know if she can get a severance package from the Town. “It will make me unable to pay my bills.”

Teresa Crush-Warren said that in 2004, when she was the president of Chamber in town, they did a study, and 2.4 million cars drove through Nederland. The first recommendation was to form a Downtown Development Authority to allow businesses to tax themselves and provide more and better infrastructure.

In the first seven years, new sidewalks were built, traffic patterns changed and now tourism is the greatest tax generator for Nederland, Warren said. “Everyone wants to stop and check out our little town.”

“More and more people are visiting Nederland, and more than ever new jobs are available, but not all visitors want to leave at night,” Warren said. “People want to stay here for a variety of reasons.”

Air B&B owners are working hard, and she had more than 300 guests in her homes over the last few years. It is nice to have a little extra investment money, but it takes an investment to get set up”, Warren said.

Travis Brock lived in Nederland for 14 years but recently moved to Longmont and works at Eldora. When his children get older, he and his wife would like to be able to come back to Nederland.

He supports the regulation but appreciates the removal of the primary residence clause. Employees rent short-term rentals in the winter. The ordinance could also increase rent. Loss of revenue could increase the rents and, therefore, have unintended consequences.

The Board discussed the comments and resources for other solutions to the STR issue and then continued the discussion to a future meeting.

(Originally published in the July 26, 2018, print edition of The Mountain-Ear.)