City Council Study Session Agenda and Packet 2015 11 10

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LCityof , Louisville COLORADO • SINCE 1878 CITY COUNCIL COMMUNICATION AGENDA ITEM 111 SUBJECT: DATE: SHORT -TERM RENTALS NOVEMBER 10, 2015 PRESENTED BY: TROY RUSS, PLANNING DIVISION PENNEY BOLTE, FINANCE DEPARTMENT DAVE HAYS, POLICE DEPARTMENT SUMMARY: Online companies like VRBO (Vacation Rental by Owner) and AirBnB, along with others, have increased the likeliness of short -term rentals occurring in Louisville. Staff has documented an increase in calls from concerned residents regarding these web - sites and how short -term rentals are interpreted in the Louisville Municipal Code (LMC). Specific concerns raised have been related to neighborhood compatibility, equal competition, lodging tax revenues, supplemental household income, and building safety. Short -term rentals are common in vacation communities like Breckenridge and Aspen as well as larger urban communities like Boulder and Denver. However, short -term rentals, in more suburban communities like Louisville, historically, have been far less common. A recent look at the AirBnB website by the Louisville Police Department showed 18 addresses advertising short -term rentals in Louisville while a similar investigation in Boulder found 1,800 listings. Louisville's current code was drafted long before such rentals became popular. There is nothing in the code that addresses such rentals directly. This study session is intended to discuss the City's current regulations and enforcement policies related to short -term rentals and explore options, if appropriate, in addressing emerging online short -term rental businesses in Louisville. BACKGROUND Louisville Municipal Code - Zoning Despite dated language, the Louisville Municipal Code (LMC) does provide rules for short -term rentals. Staff interprets the LMC to allow short -term rentals in the Residential Medium Density (RM) and Residential High Density (RH) Zone Districts. Staff interprets short -term rentals as Use Group #6 - Boarding and Lodging Houses, in Section 17.12.030 (use table) of the LMC. Use Group 6 is an allowed use by right in the RM and RH Zone Districts. Section 17.08.030 defines a boardinghouse to mean "a building other than a hotel, cafe or restaurant where, for direct or indirect compensation, lodging and /or meals are provided for three or more boarders and /or roomers exclusive of the occupant's family ". The renting of dwelling units for time periods longer than 30 -days is allowed in all residential zone districts. However, short -term rentals (less than 30 -days) are not CITY COUNCIL COMMUNICATION 8