City Council Study Session Agenda and Packet 2015 11 10

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SUBJECT: RECREATION CENTER EXPANSION AND AQUATIC CENTER OPTIONS DATE: NOVEMBER 10, 2015 PAGE 3 OF 5 owners pay a lodging and sales tax on every room rental. Single family short - term rentals do not pay taxes and do not comply with health and safety regulations. This creates an unfair playing field with motels and hotels that are complying with the law. 3. Public Safety. The growing number and diversity of short -term rentals makes it very difficult to assure compliance with minimum standards of health and safety and policing if a crime would occur. 4. Impact on Availability of Housing. Housing that shifts to permanent short term rental is taken out of the pool of units available for residential use. In some communities, it is common for investors to purchase a home for the purpose of short term rental. Each house dedicated to short term rental is one less house available for residential use. Such a trend could negatively affect the City's already challenging housing market. Pros 1. Generating Income for Residents. Short -term renting a residential property appears to be a way for Louisville residents to earn a little extra income. Living in Louisville can be very expensive. 2. Economic Activity. According to the Boulder Communication, Airbnb has done studies of its economic impact on the following eight cities: San Francisco, New York, Paris, Amsterdam, London & Edinburgh, Sydney and Barcelona. The following is a summary of the San Francisco results (click here for the full report http: / /blog.airbnb.com /airbnb- economic - impact /): • The average San Francisco hotel guest visits for 3.5 days and spends $840. The average San Francisco Airbnb guest visits for 5.5 days and spends $1,045. • 56 percent of Airbnb hosts in San Francisco said they use their Airbnb income to help pay their mortgage or rent. • 72 percent of Airbnb properties in San Francisco are located outside the central hotel district. • 42 percent of hosts in San Francisco use their Airbnb income to pay for regular living expenses. There has been no study of economic impacts on Boulder, Louisville or any similarly situated community. RESEARCH The following is a summary of the provisions of some municipal ordinances addressing residential vacation rentals. The City of Boulder's February 10th City Council Study Session was the source of this research. CITY COUNCIL COMMUNICATION 10