HomeMy WebLinkAbout2024 05 01 Short Term Rental Staff Report + Meeting Notes + Ordinance_FINAL1
JEFFERSON COUNTY
PLANNING COMMISSION
Staff Report
TO: Honorable Chair and Members of the Planning Commission
FROM: Brent A. Butler, AICP, Chief Strategy Officer
DATE: May 1, 2024
SUBJECT: Workshops on regulations governing rentals for less than 30 days
STATEMENT OF ISSUE:
In consultation with the Planning Commission, the Chief Strategy Officer (“CSO”) scheduled three
workshops with community members in different geographic areas of the county. The goal of these
workshops was to explain the existing regulations and obtain community input on how to craft a better
short-term rental (STR) ordinance.
STRs are defined as those rentals that are for less than 30 days and cover a broad range of housing types
commonly known among other terms as short-term rentals, transient accommodations, HIP Camp,
Glamping, Arbnb, VRBO, and home sharing. The first workshop attended by Commissioner Kate Dean
and Planning Commissioner Cynthia Koan occurred on March 12, 2024 at the Cape George Fire Station;
the second workshop attended by Commissioner Heidi Eisenhour and Planning Commissioners Schultz
and Koan occurred on March 13, 2024 at the Tri-Area Community Center, and the third one attended by
Commissioner Brotherton and Planning Commissioner Koan occurred on March 14, 2024 at the Quilcene
Community Center. Attendance varied with approximately 40 people at the Cape George workshop, 20 to
30 people at the Tri-Area, and between 5 and 10 participants at the Quilcene workshop. A summary of the
first two meetings is included in the packet, (see Attachment 1 – March 12th workshop notes) & (see
Attachment 2 – March 13th workshop notes); however, due to time constraints, the third workshop, which
occurred on March 14, 2024 will be provided as a handout at the planning commission meeting.
As outlined in the Comprehensive Plan the Comprehensive Plan’s Housing Action Plan contains Exhibit
3-7 which states:
•Evaluate short-term rentals using available local and state data sources.
Determine if a registration program and limits on numbers, zones, or
locations are appropriate to help ensure a sufficient housing supply for year-
round residents.
•Evaluate short-term rentals. To ensure such uses do not further restrict the
housing supply for year-round residents, the County could examine the
prevalence of short-term rentals and determine if a registration program and
limits on numbers, zones, or locations are appropriate.
2
Consistent with the Housing Action Plan, a goal of these workshops was to work with the community to
gather ideas and to review them with the Planning Commission so that short-term rental regulations may
be revised as directed by the Board of County Commissioners (“BoCC” or “Board”). This process has the
ongoing support of Commissioner Kate Dean who is the CSO’s liaison to the BoCC on this planning
topic. In the interim period, a moratorium has been adopted by the BoCC (see Attachment 3 – Ordinance
01-0408-24 Short Term Rental Moratorium).
BACKGROUND:
Significant distinctions exist between transient rentals in structures for which a septic permit was
designed and properly permitted and HIP Camp or glamping type accommodations, which may not
include septic permit approvals unless permitted in accordance with the conditional use provisions of the
Jefferson County Code (JCC). For purposes of this agenda item, HIP Camp type of short-term rentals are
considered separately, and identified as transient rentals without structures.
Considerations Affecting Both Types of Short-Term Rentals
The municipal research service center has broadly discussed the concerns associated with these types of
uses and writes:
1. Lack of lodging and sales tax collection on these short-term rental stays;
2. Unregulated traffic, parking, and noise impacts on the surrounding neighborhood; and/or
3. Non-compliance with life/safety standards that are commonly applied to other types of lodging
establishments (such as hotels, motels, and bed-and-breakfasts)?”
You can access more information on this topic by going to: https://mrsc.org/stay-informed/mrsc-
insight/february-2016/local-government-catching-up-with-airbnb
Transient Rentals without Structures (TRWS)
Community issues surrounding short term rentals of existing housing units is similar to but somewhat
different than the issues surrounding the renting of properties in open space areas without structures
which, as stated, are currently permitted through the conditional use permit process. Generally, such uses
are considered for approval under the “small-scale recreation” requiring a conditional use permit after
public notice, a written public comment period and, at the discretion of the administrator, a public hearing
procedure. While there has been significant concern raised by abutting neighbors in Marrowstone Island
and the Tri-Area about unauthorized HIP camps or glampers in the past year, staff generally sees the
existing conditional use permit process as working. Staff has, however, looked at ways to streamline this
process and in the analysis, identifies the potential pitfalls.
Permitting pathway for TRWS
As stated, Jefferson County established a permitting process for short term rentals such as HIP Camps,
which involve a conditional use permit as set forth in JCC 18.15.040 Categories of land use.
Significantly, this is similar to how Clallam County also known as a tourist destination permits these
types of uses.
3
Short Term Rentals in Structures (STRS)
Short term rentals, alternatively, are broadly permitted throughout the county in the zoning districts
abbreviated as AG, CF, RF,IF, RR:1:5,RR1:10,RR1:20 & RVC and also in the Port Ludlow Master
Planned Resort’s RC/CF Zone. Additionally, the county code requires that at least 65% of the
accommodations in the Pleasant Harbor Master Planned Resort consist of short-term rentals, as it is
envisioned as a tourist destination (see JCC 17.60.070 Resort cap and residential use restrictions and JCC
18.15.123 Allowable uses, where subsection (2) clearly states that short term visitor accommodations,
including, but not limited to, hotels, motels, lodges, and other residential uses…constitute no less than
65%). It is also more broadly discussed in the definitions as permissible in Master Planned Resorts (see,
18.10.130 M definitions “Master Planned Resort”, and JCC 18.15.126 Requirements for master planned
resorts)
ANALYSIS
At this point, the scope of review is limited to short term rentals in structures, as more fully set forth in the
title of the moratorium, and the accompanying workplan submitted as section 6 of Ordinance No. 01-0408-
24 (see Attachment 3 – Ordinance Relating to Development Regulations for Short-Term Rentals,
Declaring an Emergency and Establishing a Moratorium). The scope of work is based on uses identified in
Jefferson County Code (JCC) Section 18.20.210(3), which specifies: Transient Residence or Transient
Guest House (Accessory Dwelling Unit).
4
As stated in this section of the JCC, the moratorium therefore applies “to all short-term (less than 30 days)
transient rentals of single-family residential units and guest houses (ADUs) or portions thereof:”
During this planning session, staff recommends commencing with step 1 by identifying the thematic areas
that should be considered based on comments received at the March 12, 13 and 14th workshops, and as part
of the May 1st comments and discussion.
WORKPLAN
Step 1 – Study the issues concerning short term rentals
Step 2 – Prepare a draft Ordinance with appropriate revisions to Jefferson County’s zoning and land
use regulations and if necessary, the comprehensive plan
Step 3 - Perform State Environmental Policy Act (SEPA_ review of the draft ordinances, and
Step 4 – Conduct a public review process for the amendments, which includes public hearings before
Jefferson County’s Planning Commission and Board of County Commissioners, if required.
RECOMMENDATION:
After the presentation, consider the thematic areas which should be the focus of revisions and provide
direction.
ATTACHMENTS:
Attachment 1 - Meeting Notes – March 12, 2024
Attachment 2 – Meeting Notes - March 13, 2024
Attachment 3 – Moratorium Adopted by the Board of County Commissioners
ATTACHMENT 1 – March 12, 2024 Meeting Notes
DEPARTMENT OF COMMUNITY DEVELOPMENT
621 Sheridan Street, Port Townsend, WA 98368
Tel: 360.379.4450 | Fax: 360.379.4451
Web: www.co.jefferson.wa.us/communitydevelopment
E-mail: dcd@co.jefferson.wa.us
DATE: April 23, 2024
FROM: Brent A. Butler, Chief Strategy Officer
TO: Attendees of Short-Term Rental Workshop # 1
RE: March 12, 2024 meeting notes
------------------------------------------------------------------------------------------------------------------------------
At the March 12, 2024 workshop in the Cape George Fire Station, the Chief Strategy Officer (CSO)
summarized existing regulations as outlined in the attached PowerPoint presentation (see Attachment 1
– PowerPoint Presentation) and accepted community members’ comments, ideas and concerns. As part
of this workshop, participants shared several examples to illustrate problems with short term rentals, and
asked several questions. These examples and questions along with their respective answers appear
below.
Using real life examples of practices, participants shared concerns as set forth below.
Example 1 - A workshop participant shared his experience in Sedona, Arizona. In his example, which
was more fully discussed in a newspaper article, see Jefferson County/Port Townsend Leader,
https://www.ptleader.com/stories/short-term-rental-options-under-review,162565, the former Sedona
resident who now lives in Cape George shared that his particular Sedona neighborhood with
approximately 190 homes went from zero short term rentals (STR) in 2016 (when the governor signed
legislation restricting local government’s ability to regulate STR) to about 72% in 2023, approximately
6 years later (see, https://azcapitoltimes.com/news/2016/06/01/governor-signs-bill-that-could-turn-
neighborhoods-into-vacation-rental-zones/), a change so drastic that he no longer desired to live there.
Of these, many were owned by corporations and individuals living elsewhere. This law was largely
reversed in 2022 (see, https://www.axios.com/local/phoenix/2022/11/21/arizona-cities-regulations-short-
term-rentals), per Senate Bill 1168 (see, https://www.azleg.gov/legtext/55leg/2R/laws/0343.pdf).
Example 2 – A workshop participant shared the concern about a short-term rental practice that is
harmful to families. In this instance, a homeowner rents his home to a long-term tenant, a family, in the
slow season, typically the winter and winter’s shoulder seasons. Then the tenant, a low-income family,
was required to move every summer to enable the homeowner to rent out the home to short term tenants.
Example 3 – A participant shared Seaside’s example where the number of vehicles became problematic,
and the regulations were crafted to limit the number of vehicles through the short-term rental provisions,
and used the police to enforce provisions.
Example 4 – One workshop participant suggested that the county address enforcement by imposing a
penalty immediately borrowing from the Coast Guard’s practice, and removing the penalty once
compliance is achieved.
DEPARTMENT OF COMMUNITY DEVELOPMENT
621 Sheridan Street, Port Townsend, WA 98368
Tel: 360.379.4450 | Fax: 360.379.4451
Web: www.co.jefferson.wa.us/communitydevelopment
E-mail: dcd@co.jefferson.wa.us
Questions and Answers –
1) What does the Comprehensive Plan (Comp Plan) say about Short Term Rentals?
Answer: A search of “short term rentals” in the Jefferson County Comprehensive Plan
documents that the term appears ten times.
The Comp Plan’s Housing Element (HE) in page 3-3 says:” While short-term rentals support
tourism and provide income for homeowners, they reduce year-round housing supply for
permanent residents contributing to rising rent.” HE goes on to share on page 3-10 that “Another
challenge to housing supply and attainability may include short term rentals…. The almost 25%
of vacant units are likely occupied by second-home owners, and a share is used as short-term
rentals. Use of housing for short-term rentals can help the homeowner with their mortgage costs;
however, if homes are purchased with the primary purpose to rent them on a short-term basis,
that can lower the supply of housing and increase costs for permanent residents. Other
communities have developed polices and regulations designed to ensure short-term rentals are
registered and located in areas that are less disruptive to year-round residents. (MRSC, 2016).
Transient housing includes hotels, bed and breakfasts, boarding homes, rooming homes, and
short-term rentals (e.g., AirBnB/VRBO) see page 3-10. In conclusion, the HE says: “Evaluate
short-term rentals and consider policies to ensure a sufficient housing supply for year-round
residents.”
In the Action Plan on page 3.5, Exhibit 3-7, it says:
• “Evaluate short-term rentals using available local and state data sources. Determine if a
registration program and limits on numbers, zones, or locations are appropriate to help
ensure a sufficient housing supply for year-round residents.”
• “Evaluate short-term rentals. To ensure such uses do not further restrict the housing
supply for year-round residents, the County could examine the prevalence of short-term
rentals and determine if a registration program and limits on numbers, zones, or locations
are appropriate.
2) What does the HOA for Cape George say regarding Short Term Rentals?
Answer: While the CSO neither reviewed the Cape George HOA nor found a copy of it on the
Cape George website for review, according to the workshop discussion, the Cape George
subdivision HOA allows short term rentals. If the Cape George community’s HOA allows short
term rentals, the applicable standards would be governed by the existing county provisions as
outlined in the PowerPoint presentation (see, Attachment 1 – PowerPoint Presentation).
However, since the county neither reviews HOAs nor enforces the provisions, if a HOA
prohibition on Short Term Rentals were adopted by Cape George, it would not be regulated or
enforced by the county. It would be a private party agreement.
Nonetheless, according to the Municipal Research Service Center, Homeowners’ Associations
must abide by the regulations in Chapter 64.38 Revised Code of Washington (RCW) (see,
DEPARTMENT OF COMMUNITY DEVELOPMENT
621 Sheridan Street, Port Townsend, WA 98368
Tel: 360.379.4450 | Fax: 360.379.4451
Web: www.co.jefferson.wa.us/communitydevelopment
E-mail: dcd@co.jefferson.wa.us
https://mrsc.org/research-tools/ask-mrsc-archives/planning#Can-a-city-ordinance-that-allows-
accessory-dwellin). A quick review suggests that not only does state law regulate HOA, it also
places some limitations on what an HOA can privately regulate. The law prohibits an HOA’s
governing documents (i.e., CCRs) from excluding solar panels, certain types of drought resistant
landscaping, and adult family homes. See RCW 64.38.055 thru 060. Under the law, the
governing documents may not prohibit the display of flags or political signs.
3) What can we do about unpermitted short-term rentals?
Answer: If you are concerned that a structure is rented for less than 30 days and that it is
unpermitted, please go to the county GIS. https://www.co.jefferson.wa.us/293/GIS. Once there,
depress Tax Parcel Viewer, and then search by address or parcel number. Short term rental
permits issued prior to December 6, 2022 are available online. If you cannot find a permit, please
e-mail DCD at: dcd@co.jefferson.wa.us. We respond faster by e-mail. You could alternatively
visit county offices at 621 Sheridan Street. If it is an illegal short-term rental, please fill out a
complaint form by going to: https://www.co.jefferson.wa.us/formcenter/dcd-11/complaint-form-
70. Please be aware that the county’s enforcement process places life-safety at the top of any
enforcement. Other complaints not creating a life-safety hazard are best addressed through
nuisance complaints. If this is the case, please contact the Sherriff Department’s dispatch at
1.360.344.9779 and you will be put in touch with a Sherriff’s Deputy.
4) How do I know if someone is renting out their home legally versus illegally?
Answer: Please follow the steps above in the answer to question number three. Jefferson County
is in the process of updating the county’s new permitting software on July 1, 2024 with a
customer service portal, which we envision shall enable you to go online to determine if a short-
term rental permit exists. Since this feature is not yet available, please follow the steps above or
visit county offices at 621 Sheridan Street.
5) We have a high level of non-compliance – what can be done?
Answer: It appears that there are approximately 75 permitted Short-Term Rentals (in structures),
and that nearly 500 STR were identified by one of the platforms, Granicus, which assists
governments develop regulations and enforce existing short term rental provisions. Several ways
to manage this include: (1) third-party contracts with a provider such as Granicus to conduct
enforcement on behalf of the county. A downside of this would be cost. Other enforcement
approaches include: (2) revising the county code to require platforms to post only those short-
term rentals with a valid permit which a participant said is comparable to Seattle’s approach, see
https://www.seattle.gov/business-regulations/short-term-rentals. This approach would also be
comparable to Washington State’s regulations that set forth five provisions governing short term
rental platforms, as more fully set forth in RCW 64.37.040 – short term rental platforms.
6) Could we consider a cap (maximum) for someone living in the housing?
DEPARTMENT OF COMMUNITY DEVELOPMENT
621 Sheridan Street, Port Townsend, WA 98368
Tel: 360.379.4450 | Fax: 360.379.4451
Web: www.co.jefferson.wa.us/communitydevelopment
E-mail: dcd@co.jefferson.wa.us
Answer: Yes. Several ideas were presented as to how we could determine what would be a
reasonable cap including: (1) population size, (2) availability of water, (3) geography and
population; (5) someone also suggested a novel approach which requires those leasing short term
rentals also have a long-term rental available.
A brief discussion regarding recently adopted STR regulations elsewhere, namely the City of Port
Angeles highlighted their cap of 200 permits or 2% of housing units. They also define two types: Type 1
is for the owner’s or lessee’s principal residence and Type 2, is for others. In the PowerPoint
presentation, the CSO shared the San Juan and Chelan counties examples, among others.
7) What options exist for reducing corporate or investor interest in short term rentals?
Answer: Several ideas were proposed, including: (1) prohibiting short term rentals for the 1st
two years of ownership, (2) requiring a carbon-based life form, (3) requiring an annual permit
process.
Of the ideas presented, one ensures equitable access to STR permits such as requiring an annual
permitting process. This also would likely decrease the interest of corporate investors.
8) What about trailers and campers – are they going to be counted as short-term rentals?
Answer: Currently anything that is not in an approved structure, would need to obtain a
conditional use permit to establish a campground. There are some limited exceptions to this rule.
ATTACHMENT 2 – March 13, 2024 Meeting Notes
DEPARTMENT OF COMMUNITY DEVELOPMENT
621 Sheridan Street, Port Townsend, WA 98368
Tel: 360.379.4450 | Fax: 360.379.4451 Web: www.co.jefferson.wa.us/communitydevelopment
E-mail: dcd@co.jefferson.wa.us
DATE: April 24, 2024 FROM: Brent A. Butler, Chief Strategy Officer
TO: Attendees of Short-Term Rental Workshop # 2 RE: March 13, 2024 meeting notes ------------------------------------------------------------------------------------------------------------------------------
At the March 13, 2024 workshop in the Tri-Area Community Center, the Chief Strategy Officer (CSO) summarized existing regulations as outlined in the attached PowerPoint presentation (see Attachment 1 – PowerPoint Presentation) and accepted community members’ comments, ideas and concerns. As part of this workshop, participants shared several examples to illustrate problems with rentals and asked
several questions. These examples and questions along with their respective answers appear below.
Using real life examples of practices, participants shared concerns as set forth below. Example 1 – A workshop participant shared the example of short-term rental(s) in a treehouse in
Canada. In this example, the owner dedicated half of the proceeds to some other entity that helped the
local community. Example 2 - A workshop participant shared his experience in the community with long term rentals, and helping 13 others obtain their first home. He prefers not to rent to any long-term renters due to problems.
However, he shared that he has had no problems with short term rentals. Rights of long-term renters was
identified as a problem; one of the highlighted problems occurred during the pandemic when renters who had failed to pay their rent couldn’t be evicted. Example 3 – A community member shared that the procedures of Cayucos California may be worth
investigating because they address the impacts on residential communities. In reviewing the regulations,
we see that in all residential land use categories, no residential vacation rental shall be located within a 100-foot radius and/or within 200 linear feet of a parcel on the same block on which is located any residential vacation rental or other type of visitor serving accommodation (i.e., Bed and Breakfast or Homestay) that is outside of the Commercial land use category. Distances are measured from the closest
property line of the existing residential vacation rental unit or other visitor serving accommodation to
the closest property line of the proposed residential vacation rental unit. Example 4 – A planning commissioner recommended reviewing Portland’s regulations. And, the CSO, reviewed both Portland Maine’s and Portland Oregon’s short term rental policies, as they are both
relevant to this discussion. First, Portland, Oregon regulations vary if you’re renting two bedrooms or
you’re renting to five or less guest it’s an allowed use in residential areas that requires (1) land use review, so you apply Type A permit, (2) pay a $180 application fee, (3) notify neighbors, (4) self-attest to proper entrance and exits, and (5) also attest that you have smoke and carbon monoxide detectors in place. Finally, (6) you have to renew the permit every couple of years.
DEPARTMENT OF COMMUNITY DEVELOPMENT
621 Sheridan Street, Port Townsend, WA 98368
Tel: 360.379.4450 | Fax: 360.379.4451 Web: www.co.jefferson.wa.us/communitydevelopment
E-mail: dcd@co.jefferson.wa.us
If you have more than two bedrooms, the process requires (1) a Type B land-use review, (2) payment of the city fee of $7,700, (3) complete a traffic study, (4) supply architectural drawings, (5) explain how the use of this house is compatible with the area., and (6) the license doesn’t expire. See, https://www.portland.gov/bds/astr-permits/before-you-apply
Unlike jurisdictions in Washington, Portland, Maine is permitted to establish rent controls, and embedded its short-term rental provisions within their rent control ordinance. The ordinance states that short-term rentals are (1) subject to the same annual rent increase caps that long-term rentals are, (2) must submit information annually and follow other rules of the new ordinance. Exempt from the rules,
for both short-term and long-term rentals, are landlord-occupied buildings with fewer than five units.
Questions and Answers – 1) What happens if you are denied a short-term rental if there’s a cap? Is it a competition? Does it
go underground?
Answer: By cap, we assume you mean a limit on the number of short-term rentals (STR), and what happens if you apply after that is limit reached. There are several ways jurisdictions handle this which include: (1) one has to wait until the number of STR fall below the cap, (2) once the
cap is reached one has to wait until the next year if there’s an annual permitting process, (3) once
the cap is reached, and it falls below the number that number, a jurisdiction may offer a rental to the next name on the waitlist, if one is maintained by the local government. Let us know your ideas as to what may work best.
Regarding a competition – a cap creates a first come first serve approach, which isn’t actually a
competition as we are not comparing one rental against another. After enforcement issues are addressed, and depending upon the approach used, homeowners who illegally rent out their properties may face step fees, and penalties, assuming this is Planning
Commission’s recommendation that’s accepted by the Board of County Commissioners.
2) Someone stated that the cap should be based on density. Answer/Discussion: A community member suggested that the STR should be based on the
density of short-term rentals within the local community. This is similar to how the State of
California approves alcohol permits by determining the density of existing permits under their public necessity and convenience provisions. In this instance, when California’s Alcoholic Beverage Control Board (ABC) finds that there is an oversaturation of alcohol beverage outlets in a particular census tract, state law prohibits ABC from issuing or transferring alcohol licenses.
Comparable regulations could be adopted. If the density of short-term rentals is below a certain
threshold in a specific area such as a census tract, then the local government may issue a permit. The converse would be the no STR permit would be issued if the existing number already exceeds a certain threshold.
3) Someone commented that Airbnb increases housing values. Is this true?
DEPARTMENT OF COMMUNITY DEVELOPMENT
621 Sheridan Street, Port Townsend, WA 98368
Tel: 360.379.4450 | Fax: 360.379.4451 Web: www.co.jefferson.wa.us/communitydevelopment
E-mail: dcd@co.jefferson.wa.us
Answer: A survey of peer reviewed literature appears below. The CSO could not find any studies to support the finding that housing values or rents decline in markets with unregulated short term rentals such as Arbnb. Granicus, however, states that there is a positive economic
impact insofar through increased tax revenue, guests spending money in other visitor related
amenities such as restaurants, bars and museums. See, https://granicus.com/blog/six-ways-that-short-term-vacation-rentals-are-impacting-communities/. This summary also finds that short term rentals leads to less long-term rentals available, neighborhood changes, increased tourism activity, unfair playing field for traditional lodging partners, and lost tax revenue.
In one study, entitled Evidence from Airbnb, the authors found that “Airbnb has a positive impact on house prices and rents. This effect is stronger in zip codes with a lower share of owner-occupiers, consistent with non-owner-occupiers being more likely to reallocate their homes from the long- to the short-term rental market. At the median owner-occupancy rate zipcode, we find
that a 1% increase in Airbnb listings leads to a 0.018% increase in rents and a 0.026% increase in
house prices. Finally, we formally test whether the Airbnb effect is due to the reallocation of the housing supply. Consistent with this hypothesis, we find that, while the total supply of housing is not affected by the entry of Airbnb, Airbnb listings increase the supply of short-term rental units and decrease the supply of long-term rental units.” See,
https://marketing.wharton.upenn.edu/wp-content/uploads/2019/08/09.05.2019-Proserpio-Davide-
Paper.pdf Another study entitled The Impact of Airbnb on residential property values and rents: Evidence from Portugal finds that “on average a 1pp increase in a municipality Airbnb share results in a
3.7% increase in house prices. “ See,
https://www.sciencedirect.com/science/article/abs/pii/S0166046221000272 And finally, the Economic Policy Institute, a nonpartisan policymaking organization completed a study entitled, The economic costs and benefits of Airbnb. This study concludes in its summary
that “s that the costs of Airbnb expansion to renters and local jurisdictions likely exceed the
benefits to travelers and property owners. Thus there is no reason policymakers should reverse long-standing regulatory decisions simply to accommodate the rise of a single company.” See, https://files.epi.org/pdf/157766.pdf
DEPARTMENT OF COMMUNITY DEVELOPMENT
621 Sheridan Street, Port Townsend, WA 98368
Tel: 360.379.4450 | Fax: 360.379.4451 Web: www.co.jefferson.wa.us/communitydevelopment
E-mail: dcd@co.jefferson.wa.us
4) Weigh economic benefit versus impacts. How much is coming in by VERBO or Airbnb? Answer/Discussion: The commenter also stated that for every person who doesn’t live here, there
are impacts on the local economy and that caps may or may not work. While we can neither
share information on specific businesses such as VERBO or Airbnb beyond what is publicly available nor whether a business reported the amount of their sales or sales tax pursuant to RCW
82.32.330, the Office of the Treasurer reports information on Special Hotel-Motel Sales Tax. See insert below and on the next page.
DEPARTMENT OF COMMUNITY DEVELOPMENT
621 Sheridan Street, Port Townsend, WA 98368
Tel: 360.379.4450 | Fax: 360.379.4451 Web: www.co.jefferson.wa.us/communitydevelopment
E-mail: dcd@co.jefferson.wa.us
By looking at the Special Hotel/Motel & Transient Rental Sales Tax -Fund 125, and the local distribution of the income received, we budgeted nearly $735,000 to be generated in 2024. All of this revenue goes to Fund 125 and is used to promote tourism in Jefferson County and overnight lodging. Overnight lodging also pays sales tax that funds basic county services, including
affordable housing and mental health programs. The impact of short-term rentals in private
residences other than hotels and motels on the local economy is hard to determine without extensive research or partnering with a third party. By looking specifically at supply and demand, we realize that short term rentals increase supply of short-term housing for tourists, and therefore reduces the demand for hotel and motel units. According to the Oxford Economics
Analysis, https://www.ahla.com/sites/default/files/SOTI_report_Oxford_Data_Occupancy.pdf,
Washington State had a projected 2023 local occupancy rate of 66.3% which appears to be one of the top seven occupancy rates after Hawaii (78.7%), Alaska (71.2%), Florida (70.5), District of Columbia (68.7%), Arizona (67.9%), and New York (67.5%). According to Hotel Tech, this suggests that while the hotel occupancy rate is good, it’s not ideal. Ideal is 70% and 95%. See,
https://hoteltechreport.com/news/occupancy-rate.
This suggests that the short term rentals in private residences may negatively impact local hotel and motel revenue but not sufficiently to reduce interest in new hotel construction, see https://www.ptleader.com/stories/new-hotel-proposed-for-downtown-port-townsend,126339.
Nonetheless, a shortage of hotel, motel and other accommodations was identified as a reason that
THING didn’t return for a fourth year. (see, https://www.ptleader.com/stories/thing-fest-leaves-pt,148934). In conclusion, a firm understanding of the impact on the local economy of regulating short term rentals in private business will be unanswered without more extensive analysis.
5) Is a Campsite limited to five acres?
Answer: Based on the Jefferson County Code, campsites must be on a minimum of five acres. This finding is pursuant to JCC 18.20.350 Small-scale recreation and tourist uses subsection (6) which states: (a)The use of any parcel for an RV/campground park and any modifications to an existing
RV/campground park shall comply with the following standards and requirements: (i) The minimum
parcel area for an RV/trailer park or commercial campground shall be five acres. The maximum area of any parcel devoted to the principal RV/travel trailer or commercial campground use shall not exceed 20 acres.
6) Is it possible to limit certain activities, e.g., fireworks, parties, etc.
Answer: Yes. Many communities include conditions in the permit approval such as Jefferson County’s permit, which requires annual fire inspections similar to other commercial lodgings
DEPARTMENT OF COMMUNITY DEVELOPMENT
621 Sheridan Street, Port Townsend, WA 98368
Tel: 360.379.4450 | Fax: 360.379.4451 Web: www.co.jefferson.wa.us/communitydevelopment
E-mail: dcd@co.jefferson.wa.us
7) Could we reduce impacts by allowing unlimited short-term rentals in commercial zones, and restricting them elsewhere?
Answer: Yes. This would be a classic function of zoning. The zoning table could be redesigned to
limit short term rentals in certain zones.
8) Is there a point in having regulations if they are not enforced? This shouldn’t be retroactive. Answer: Yes. The county’s enforcement ability is dependent upon resources, and other factors. For
example, we learned as part of this review process that local governments could amend their short-
term regulations by adopting a new ordinance to require platforms to self-enforce short term rentals, meaning advertising on a platform would be prohibited without a permit number. The CSO assumes that the commenter means that the enforcement should not be retroactive.
Generally speaking, enforcement retroactively is difficult if not impossible as the county’s voluntary
compliance process is designed to offer community members an opportunity to correct the violation before penalizing. This is typically done by notifying the party who is in violation of the concern, and giving them a specific time to correct this violation. If not corrected, penalties could be imposed.
ATTACHMENT 3 - Moratorium – Short Term Rentals