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HomeMy WebLinkAboutPC Minutes 012424MINUTES PLANNING COMMISSION Hybrid Meeting- ln Person and Virtual CityCouncilChambers:321 E 5m Stree! PortAngeles, Washington 98362 January 24, 2024, aI 6:00 P. M. REGULAR MEFflNG CALL TO ORDER Chair Stanley opened the meeting at 6:01 P.M. ROLL CALL Commissioners Present: Benjamin Stanley (Chair) Richie Ahuja Tammy Dziadek Marolee Smith James Taylor Colin Young Commissioners Absent: None City Staff Present: Public Present: Pat B arthol ick (S eni o r D ev e I opmen t S e rv i c e s Sp e ci al i s t) Shannen Cartmel (Deputy Director of Community Services) Calvin Goings (Deputy City Manager) Ethan Walker Qfousing Administrator) Zach T revino (A s s o c i a t e P I ann e r) Francisco Alvarez, Ashlyn Ameliani, Dan Anderson, Dan Beam, Charisse Bennett, Tom Butler, Gail Cripe, Laurel Cripe, Holly Decker, Alex Fermanis, Jason Fisher, Holden Fleming, Leslie Forsberg, Mike French, Dan Green, Jim Haguewood, Jim Halberg, Brian Heberling, Donnette Hope, Stanley Hope, D' Hutchins, Costan Ivga, Kelly Johnson, Carl Krauskoff, David Mattem, Greg Maust, Ellen Menshew, Lorrie Mittman, Matthew Moore, Steven Pelayo, Jake Purvis, John Ralston, Ron Richards, Andy Rowlson, Sarah, Carole Scholl, David Squires, Stacy, Peter Stedman, Stephanie, Caitlin Sullivan, Bruce Swenson, Karen Swenson, Shawna Turner, Joyce Underwood, Shawn Washburn, David Wegener, Tim Wheeler, Carolyn Wilcox, Justin Williamson, chelsea winfield, Marvin witherow, additional unidentified members of the public PUBLIC COMMENT Planning Commission Minutes January 24, 2024 Page 2 chair stanley opened the meeting to general public comment. The following individual provided comment: o John Ralston explained that he submitted a development application to the City that had not been accepted and will follow up by submitting written comments pertaining to the situation. He is unhappy about having to pay an increased fee for the application' chair stanley closed the meeting to general public comment. VAL OF Commissioner Taylor noted that the draft minutes from the Decembet 27,2023 tegular meeting mention Chair Stanley's discussion with staff about agenda topics' He requested information about what transpired at the meeting between staff and the Chair that other Commissioners did not attend. No changes to the minutes were proposed' MOTION: Commissioner Young moved to approve the minutes from the December 27' 2023 regular meeting of the Planning Commission. The motion was seconded by Commissioner Dziadek and passed unanimously (6-0) through a consent vote' PUBLIC HEARING 1. Short-Term Lodging - Title 17 Port Angeles Municipal code Amendment Chair Stanley introduced the item by stating that the Commission was not given the opportunity to provide input in the process that led to the development of the draft short-term lodging (STL) regulations' Deputy City Manager Goings provided a comprehensive overview ofthe proposed municipal code amendment using a slide presentation. He explained the options that are being presented to the Commission arrO tne putiic for consideration, noting that the staff report summarizes the proposal and detailing the public engagement that occurred prior to the hearing. He provided Luclg.ornd of short--term rental (STR) regulations beginning with the 2017 adoption of a definition of .,short-term rental" to the present. The presentation also included explanations of the proposal's development process, data collection, community survey results' and anticipated next steps. The four months between the anticipated City Council decision in February and the licensing system's launch date allows time for staff to carefully implement the process based on which alternative is chosen. At the end of the presentation, he explained the staff recommendations for the Commission' s consideration' Chair Stanley provided each Commissioner the opportunity to provide brief comments following Deputy City Manager Goings' presentation. Each Commissioner provided a statement about the topic in response to the presentation' Chair Stanley opened the public hearing to comments at6:45 PM and limited comment time to two minutes per individual' The following individuals provided comments: P I anning Commiss ion Minute s January 24, 2024 Page 3 a o a o o a o o a Holden Fleming noted that the Commission's bylaws allow for five minutes of public cornment per person. He stated that he is a resident of the City and pointed out that l\Yo percent of survey respondents reported they were struggling to find adequate housing. He provided comments on the divergent survey results that demonstrate the need to make careful decisions. He noted that "strongly disagree" was a common response to each alternative in the survey. David Squires is a local resident who owns an STR on Cherry Hill. He explained that City staff advised his realtor in 2017 that the City was planning to amend regulations to allow for more VRBOs. He explained that his STR was closed after receiving a cease-and-desist letter from the City. He stated that he is angry and believes all STR zoningregulations in the 2017 version of the PAMC are null and void. He urged the Commission to stop the punitive fees. Brian Heberling expressed hope that the Commission does not simply regurgitate the 2017 PAMC regulations. He stated that staff misled residents by giving them permission to operate STRs in prior years and then going back on their word' Costan Ivga grew up under communist rule and came to the United States of America thirty-five years ago. He emphasizedthattaking money from someone to give to others has never improved anyone's lives. He related the idea that transferring wealth from some to others will not help the situation to the STR issue in the City. Leslie Forsberg believes the City is on the wrong track with the proposed STR regulations. The focus has been taken off much more important issues. She claimed that the 2017 emailfrom staff makes the current code null and void' STRs have nothing to do with affordable housing. The solution is dealing with the large numbers of dilapidated homes in the City. She also stated that STRs are a business and should pay the same fees as any other business. Ron Richards explained that STRs affect the whole county. The procedure is flawed because the proposal should be considered by the City Council before a recommendation is made by the Commission. Laurel Cripe handed the Commissioners a sunmary of the STL feedback that the city has received since June. She noted that 38% offeedback indicated a desire to put strict limits on STRs. Caitlin Sullivan stated that the proposed alternatives are flawed' The2017 regulations were unenforceable, and the proposed set of replacement regulations is too complex. The City should start with enforcement of the existing simpler code and explore other options than what is being considered. Bruce Swensen urged the City to register all preexisting STRs and all newly established STRs, establish a reasonable licensing program, and allow transfer of existing STR licenses. He stated that the City should not require any inspections of STRs because insurance companies will require inspections if they deem it appropriate and necessary. He also encouraged the City not to require a site plan for STR uses' P I annin g Co mmis s io n Minute s January 24, 2024 Page 4 . Karen Swensen operates an Airbnb and feels that STRs should be allowed. She explained that STRs provide a unique experience in the neighborhood distinct from hotels. She is pleased to pay lodging and occupancy taxes and noted that the City is dependent on tourism now more than ever. Chair Stanley called a break beginning at7:10 PM. The break ended at7:16 PM and the hearing resumed. o Chelsea Winfield has been a resident of the City for 30 years and owns a company' She states that she was told she could start an STR. She explained that the proposed fees are outrageous, and the community has felt intimidated by the City Council. o Matthew Moore is a City resident and stated that there is a mention of STRs having an impact on renters but was disappointed by a lack of analysis in the proposal. He stated that there appears to be a bias toward the property owner class. Renters have a difficult time finding housing. Workers are not a commodity, and the Commission should consider how the policies will impact non-owners and their access to permanent housing in Port Angeles' o Holly Decker is a City resident who purchased a home in Port Angeles but was relocated to the east coast on a work assignment. She wants to know what success looks like and how metrics are being used to evaluate success. She wants to know how the City is thinking about the big picture in relation to the tourism economy rather than reacting. . Andy Rowlson owns a rental home in the City of Bellingham and explained that Bellingham has a licensing program and inspection system that causes 100% of the homes to be inspected every three years. Doing a $500 safety inspection each year on a home is excessive. He explained that STRs are good for the housing stock by causing dilapidated residences to be purchased, fixed up, and then used. o Tim Wheeler lives near Sequim and stated that the County is affected by the STL issue. The homelessness and affordable housing situations are affected by STRs. STRs drive up home prices. Elderly people are living in their cars because they cannot find housing. Olympic Medical Center employees are not able to find housing in the City that is affordable to them. Teachers and other professionals are in the same position. STRs must be regulated if they cause a negative effect on the availability of affordable housing. o Ellen Menshew lives in Clallam County and has seen a lot of transition in the City over time. She is far more concerned about making housing available for those who live in our community than facilitating tourism. She checked with the school district and there are 144 unhoused students in the Port Angeles School District. The City cannot allow students to be unhoused. If a fraction of STRs were put back on the market, they could be affordable to people who want to move here. o Dan Anderson operates an STR in the R7 zone. He is hopeful that there will be an opportunity for him to achieve compliance. He noted that preventing houses valued Pl anning Commis s ion Minute s January 24,2024 Page 5 a a a a a o around $500,000 from being used as STRs will not help people who have housing challenges. He stated that many people knowingly break the law because it is unenforced. Hospitality and toufism are important to a community because they result in wages. He expressed support for some derivation of Alternative #1' Steven Pelayo explained that the City indicated to people that they could operate STRs and never enforced the 2017 code. He expressed agreement with Commissioner Ahuja that data is important when considering STR regulations. He stated that tourism has replaced the loss of mills and other industry in the City's economy. He expressed agreement with Commissioner Young that lodging is crucial for economic growth' Sequim is ahead of Port Angeles in many ways, including in the matter of STLs' Gail Cripe stated that staff assigned itself the role of drafting code and enforcing the code through inspections. She noted that the survey was only about the five proposed alternatives and did not offer the chance for freeform comments. The survey responses constitute a nonrandom self-selecting sample of Port Angeles residents' Donnette Hope move to Port Angeles almost 30 years ago, started working for the school district, and has watched economic drivers in this town disappear. She explained that limiting tourism in the City is not going to help anyone' The same people who cannot afford housing now would not be able to afford housing once STR units become available on the real estate market. She stated that the City does not lack housing, but lacks affordable housing. Stanley Hope is a City resident who operates an STR that would need to be rented for approximately $2500 a month for him to break even flnancially as a long-term rental owner. Charging more would need to be a part of any long-term rental situation' If his house were sold it would be priced at $500,000. He noted that the City's infrastructure is strained, which poses a challenge to developing more housing' He mentioned that buying an apartment complex and turning it into an STR would be an investment opportunity. Jake Purvis lives just outside of the City and repaired several blighted properties in the R7 zone. He was told by staff that he can operate a by-appointment only rental business. He believes STRs should be permitted in all zones' He proposes a low-cost permit system. Many people operating STRs already possess a business license from the Washington State Department of Revenue. He stated that it may be necessary to reconsider the 2017 code and suggested a simplistic framework incorporating a business license fee for STRs consistent with what is required for other businesses' Kelly Johnson is a local realtor and explained that short-term rentals are not the reason that the city has no affordable housing. She states that record low interest rates were the most significant factor in the market ftet:uy in20l9. She explained that people purchasing STRs have turned blighted properties into beautiful homes to the delight of their neighbors. Planning Commission Minute s January 24, 2024 Page 6 a o a a a a a David Mattern believes the Planning Commission should have the opporhrnity to help in the drafting the STL regulations. There are some instances where senior citizens depend on an STR income, so he proposes an alnnesty plogram allowing those people to stay in their homes and use them as STRs. He raised the example of Chelan County as a jurisdiction with a program that allows money to stay in the community' Charisse Bennett stated that she operates an STR in a commerci al zone. She suggested ending the conditional use permit (CUP) requirement for STRs in the CO zone because it is redundant to require a CUP in addition to the licensing' Carol Scholl identified herself as one of the only people present who does not run an STR or bed and breakfast. She sees the impact of unregulated STRs on neighborhoods. It is difficult to have community when people are constantly renting out homes. Many small towns cannot keep employees because housing costs are so high. She raised the example of Sedona and noted that many cities are dealing with the STR problem. She agrees that20I7 code is a mess because it was never enforced. She wants to hear from more homeowners who do not operate STRs' Mike French thanked Planning Commission, City Council, and staff for their service. port Angeles is the most innovative small town in the state. He believes that the City has not been hearing from tourism policy professionals because the professionals say that the need for cities like Port Angeles is to enable service industry workers to afford housing. Housing shortages are created in part by an excess of tourism. Sustainable tourism is the goal, not more tourism. He noted that STR guests are less likely to eat at local restaurants because they have a kitchen. Sarah explained that she owned a business for 43 years and advocated for STRs as a way for self-employed people to supplement their income. She noted that STLs incentive property owners to keep buildings maintained. She disagrees with those who say that STLs are not a viable part of the Port Angeles community. Carl Krauskoff is a full-time multi-family developer in Washington who owns property in the City. He has spent money on local contractors in the City and has had more than 34 families stay in the STR he operates. He advocated for 506(c)s, expressed support for STRs, and stated that he would love to see the code more thoughtfully put together. Jason Fisher lives in Cherry Hill. He described the neighborhood, stating that next door to his mother's house was a party house that created lower property values. Another neighbor is an STR that has helped improve the neighborhood. He noted that people have invested money in their neighborhood through STRs. Tom Buger lives just outside the City but has been here for 30 years He tried to operate as a STR in another town and the neighbors begged him to stop because of the noise, so he stopped. He believes the government's responsibility is to provide for the residents of the community, so the City should let STR owners operate and focus on o P lanning Commis s ion Minute s January 24, 2024 Page 7 a a a a a a the majority of property owners instead. He is an investor and explained that money ls not circulating in the community when investors own properties. Dan Green claimed that the talk about affordable housing is a joke' He stated that what is not being addressed is the issue of those who operate STRs and live on the property. He is a registered nurse and retired from Olympic Medical Center. He was diagnosed with prostate cancer and his family has operated an STR since 2020. Since 2020, they have been super hosts and seven months out of the year they are renting to doctors, nurses, and other professionals. Jim Halberg is a business owner and City resident. He explained that the STL situation does not need to be so difficult. The key issue is affordable housing and there has not been a huge effect on affordable housing by STRs. Palm Springs had to shut things down because they had a large volume of STRs. A simplified plan involving registration and platform compliance is needed so the STR situation does not get out of control. He noted that he operates an STR that happens to be legal. Greg Maust explained that housing is for living in, not making profit and money' He noted that sustainable affordable housing is not even close to being realized' Travelling employees are bankrupting Olympic Medical Centerbecause they cannot hire full-time employees. He noted that the second homeowner class is well-represented. He reiterated that residences are primarily intended to be lived in. Shawna Turner stated that a lack of cost-benefit analysis in staff s presentation is a flaw. She believes the whole STL proposal should be scrapped and made part of the Comprehensive Plan. She noted that an STR is not defined clearly in the draft code. She is confused as to why the City allows ADUs in an attempt to increase affordable housing stock but then allows them to be used as STRs' Carolyn Wilcox stated that the discussion has been robust and has been more balanced at this meeting. In December when attending a City Council meeting, she only heard from those with a financial interest in this issue. She stated that the disruption began with the founding of Airbnb in 2008 and that the technology companies are unregulated. The City needs to determine who housing is intended to be for. In Irvine California, the long-term rental market decreased in cost after their STR ordinance was passed. She explained that using a program named Host Compliance could help the City enforce the STL code. Jim Haguewood is a resident of the City and clarified that he is not operating an STR' He recommends allowing residential rentals of 30 days or less in all zones in the City. The STR situation presents an unprecedented disruption to the community' The evidence shows that $8 million in economic value will be lost with the proposed regulations. A new ordinance should clean up the compliance issue and allow time for a more constructive discussion. Ashlyn Ameliani is a City resident who operates an owner-occupied STR but received a cease and desist letter. She looked into renting to long-term tenants but received no o Planning Commission Minutes January 24, 2024 Page 8 interest for a maximum rental period of 90 days. She is not planning to turn her residence into a long-term rental and relied upon STR revenue for her retirement. She finds it frustrating that the community is going to tell her how her house should operate' r Lorrie Mittman is a City resident who operates an owner-occupied STR' She called the City in 2018 and asked about STR regulations. She was told that there were no regulations atthattime but that there probably would be in the future' She appreciates that there is a pathway to compliance. She claimed that the City receives $300,000 a year from noncompliant STRs and accepted the money knowingly. She accused the City of hypocrisy for taking money from noncompliant STRs. She stated that long term rentals are being used to make money too, but she will not rent her residence on a long- term basis. o John Ralston is a City resident who does not own STRs. He attended the 2017 meetings and mentioned that staff would have problems at that time. He states that the city has provided incomplete information and the GovOS data should be fully released. The City should state that the number of dwelling units is an estimate and that tax revenue generated by STRs is closer to $400,000. The City should clearly state what GovOS is going to be charging. He also mentioned that the survey should have included ananative explaining the rationale for the proposed alternatives. . Stacy is a City resident who lives in a mixed density neighborhood. She stated that affordable housing is not the issue. STRs bring drug use, noise, and other disruptions. She explained that nurses cannot find housing in the City of Port Angeles. . Marvin Witherow cannot believe that regulations are going to be placed on his home. The people who would need to rent would not rent his house. He believes the owner of a property should be able to do what they want with their own property' o Shawn Washburn is a local real estate agent and lifelong resident of the City. He explained that the issue at hand is much larger than STRs. Homes are being transformed into offices and they can no longer be used as a residence. He asked where the City would be if the energy put toward STL regulations had been put into working on the blighted homes and utility issues in the City. o Justin Williamson stated that STRs are not the reason people come out to the Olympic peninsula. The natural resources are the reason people come to the Peninsula' o Stephanie is a new resident who works as an RN at Olympic Medical Center. She is familiar with the trouble that local healthcare profes'sionals face in finding housing. She is a noncompliant STR operator in the City. She wants everyone else to be economically sound. She noted that STRs are not automatically going to be transitioned into long-term rentals if STRs are limited. STR owners should not have choice taken away from them. chair stanley closed the public hearing to comments at 8:55 PM. He clarified that the function of the Planning Commission is help focus the City Council by making a recommendation. Detailed discussion by the Commission followed the public P lanning Commis sion Minute s January 24, 2024 Page 9 comment period. Staff answered questions from the Commissioners about the proposal' Several motions were made, as follows: o Commissioner Taylor suggested a motion to recommend that no fines be imposed upon any STRs operating before fiscal year 2025. Commissioner Smith proposed amending the motion to recommend no fines for STL operations based on the 2017 Port Angeles Municipal code requirements. commissioner Taylor expressed agreement with this amendment and moved to recommend that the City Council adopt a suspension of fines associated withviolations of the STL regulations in the2017 Pott Angeles Municipal Code. Further discussion and refinement of the motion's language ensued. Commissioner Smith moved that the Planning Commission recommends that the city council pass an ordinance to amen d the 2017 ordinance to allow sTRq in all zones of the city. commissioner Taylor seconded the motion. The motion failed (5-L) through a roll call vote, with commissioner smith voting yes. Commissioner Ahuja moved that the Planning Commission recommends that the City Council: o Amend the existing ordinance in such a manner that supports enforcement of the 2017 Port Angeles Municipal Code and provides a timeJimited exception option for existing nonconforming short-term rentals; and o Pursue platform-based enforcementl and o Pursue a comprehensive assessment of an ideal short term rental process in the CifY of Port Angeles. Commissioner Young seconded the motion. The motion passed (5-l) through a roll call vote, with Commissioner Smith voting no' Commissioner Smith moved to recommend that the Planning Commission become more proactive, explore govemment subsidized supportive housing to low- and middle-income residents, identify financial institutions that can help the City work better with builders in the community, and find vacant and abandoned properties that can be developed to devise an incentive program for promoting their development' Commissioner Taylor seconded the motion. After further discussion, Commissioner Smith withdrew the motion before a vote occurred' a a commissioner Taylor moved that the Planning commission recommends that the city council cap the registration fee for sTR owners at $25. Commissioner smith seconded the motion. The motion failed (4-2), with Commissioners Smith and Taylor voting yes. Planning Commis s ion Minute s January 24, 2024 Page 10 STAFF UPDATES City staff did not provide updates to the Commission' REPORTS FROM COMMISSION MEMBERS o Chair Stanley raised the issue of transparency, stating that the Commission had no input on the work plan for the Planning commission going forward. o Commissioner Ahuja stated that he would like to have agenda topics decided upon through coordination with the Chair. Staff assured the Commission that staff will continue to work jointly with Commission Chairs to develop meeting agendas through a collaborative process. o Commissioner Ahuja stated that there is a lack of strategic alignment between the City Council and the Planning Commission. He recommends the establishment of an ad hoc standing committee to focus on strategic alignment between City bodies' o Commissioner Young noted that there was a joint City Council and Planning Commission meeting in June, which was insufficient to accommodate necessary discussion. He .,rgg"rt"d holding a joint meeting at least twice a year. Chair Stanley expressed frustration with staff s presentation at the joint meeting that occurred in June because it took up most of the meeting time. o Commissioner Smith believes that the Commissioner emails should be publicly available to facilitate open communication. ADJOURNMENT Chair Stanley moved to adjourn the meeting. Commissioner Smith seconded the motion. The motion passed unanimously (6-0) through a consent vote' The meeting was adjourned at 10:58 PM. Benjamin Stanley, MINUTES PREPARED BY: Zach Trevino, Secretary Signed date: