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HomeMy WebLinkAbout2023-08-08 Business and Economic Development Committee Minutes BUSINESS & ECONOMIC DEVELOPMENT COMMITTEE Tuesday, August 8, 2023 @ 5:15 PM City Council Chambers MEETING MINUTES City Councilors Present: Fournier, Hawes, Leonard, Pelletier, Schaefer, Sprague, Tremble. City Staff Present: Collette, Krieg. Chair Sprague called the meeting to order at 5:15 P.M. 1. SHORT-TERM RENTAL DISCUSSION, Action requested to provide staff policy direction Development Director Anne Krieg presented to the Committee. Reported that staff is still working on updating proposal language to be in-line with Committee's recommendations re: hosted vs. non-hosted property definitions and regulations. Two public hearings have been held — one at the public library and one during the most recent Planning Board meeting. Significant public feedback received at both hearings indicating support for allowance of STRs in the City. Krieg noted that feedback also indicated there are many more traveling workers who stay for 28 days or less than was originally surmised. Also noted feedback reflecting opposition to STR allowance, primarily in regards to the potential for neighborhood erosion. Currently, staff is discussing the idea of a potential cap on the number of STR units, although Krieg noted that she is not generally in favor of this kind of policy. Several cap options currently being proposed are (1) a cap on the number of STRs per zoning district, (2) a cap on the number of non-hosted STRs City- wide, and (3) a cap on the number of the whole-house STR permits issued per person/entity (likely two). Krieg noted that after preparing the Committee's memo regarding these suggestions, staff also had a meeting with a consultant who provided the suggestion of allowing non-hosted STRs as a Conditional Use. Noted that the purpose of a Conditional Use is to assess whether the use in question is appropriate for the particular location where it is being proposed, and these applications go in front of the Planning Board for approval. Planning Board would then be able to apply heightened scrutiny to these proposals, and be able to ask questions such as how many people can be accommodated at the property, potentially even applying a limit as a requirement of the permit. Council Schaefer echoed the concerns of neighborhood erosion and the transient nature of STR use. Asked where there would be a cap involved in the Conditional Use proposal? Krieg clarified that there would not be a cap, but it would provide City staff with more awareness of these properties, and she repeated that increased oversight in the application process that would be part of the Planning Board approval process. Council Leonard also noted that he is not generally in favor of caps, though feels it may be useful in this circumstance, and asked what number of STRs would hypothetically be sustainable in the City, per staff's assessment. Krieg responded that a City-wide cap could be addressed two ways: (1) acceptance of the approx. 150-160 pre-existing STR properties, with a growth allowance of x-%, or (2) assessing the City's whole housing inventory and deciding on a percentage of that number that could be allowed as STRs. Councilor Tremble expressed his thoughts that property owners should have the right to use their homes as they wish in regards to renting, but did note concerns re: non-hosted properties. Suggested that there should not need to be limits on properties where the owner resides, even if they only reside there part-time, but that limits should be put in place for properties that are not the owner's primary residence. Krieg responded that it may be helpful to include a sub-definition under non-hosted properties reflecting allowances for seasonal property owners, such as those who live at their Bangor property in the summer but live elsewhere in the winter. Noted that this has been done in other coastal communities where these situations are especially common. Council Schaefer asked if ADUs would be considered hosted or non-hosted, if they are on the same property as the owner's primary residence. Krieg responded that they would be considered hosted. Councilor Leonard brought up the example of a policy instituted in the city of Atlanta, in which a limit was placed on the number of properties that can be owned by individuals who are not citizens of Atlanta. Suggested that Bangor may want to look into something similar, as he is concerned with maintaining fairness of property availability/ownership for local citizens. Krieg responded that staff will look into this. Councilor Fournier also commented that he is not generally in favor of caps, but also expressed support in this circumstance. Noted that his primary concern is the displacement of long-term housing when there is already a shortage. Krieg asked the Committee how they felt about a cap based on the current known number of STRs in the City. Councilor Schaefer responded that she would be in favor of this. Schaefer also asked if an STR permit would be attached to the property owner or to the address — Krieg responded that it would be attached to the address to prevent issues such as property owners selling permits to one another. Chair Sprague commented that he would like to have a better understanding of the breadth of the STR "problem" before instituting a cap. Also concurred with the comments provided from Planning Board Don Meagher re: addressing short- and long-term rental policies comprehensively. Noted that there seems to be a general lack in the understanding of Bangor's overall housing needs. Krieg responded that Bangor is in the unique position of being able to implement an STR policy before it becomes a problem. Noted that the suggested cap based on the current STR units and an associated growth percentage may be best, as it would then allow for continual monitoring to assess how things are progressing and if the number of STRs is becoming problematic. Sprague also expressed a desire for research to be done on what types of housing are needed in the City, and what numbers are currently existing vs. needed. Krieg responded that the primary concern with STRs has less to do with the type of housing and more to do with displacement of potential long-term housing inventory. Sprague brought up the public comments re: usage of STRs for travelling workers, and wondered if there would be a way to differentiate between work use vs. recreational use in policy-making. Also asked if there would be potential tax policy implications for property owners if based on how their STRs are used. Suggested following up with the City Assessor. Krieg responded that STRs are not taxed differently in other communities, but that she will follow up with Tax Assessor Phil Drew. Councilor Tremble concurred with Chair Sprague's comments on differentiating between work and recreational uses of STRs. Commented that he would be open to a cap on the number of properties that are being used primarily commercially (i.e. most or fully non-hosted, with consistent STR usage). Councilor Pelletier asked if STR platforms such as Airbnb apply the same state lodging tax as hotels do. Krieg responded that they do not, but the platform does collect a tax fee that gets paid federally. Property owners are responsible for any associated state taxes themselves. Chair Sprague asked if the taxes are different for hosted vs. non-hosted properties. Krieg responded that she was not sure. Councilor Schaefer asked whether the lodging tax gets paid to the State or to the City. Krieg responded that it gets paid to the State, and that state licensing is also required for lodging properties where 2+ bedrooms are being used as individual lodging units. No further questions/comments from the Committee. Krieg stated that staff will fine-tune these proposed options for the next discussion. 2. SOFTWARE PURCHASE FOR COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM, Action requested to accept staff recommendation Development Director Krieg reported that Community Development Officer Robyn Stanicki has been working with City's IT department and HUD to propose usage of a software program that is presently used by many other CDBG professionals. Staff is requesting that the Committee approve purchase of said software. Councilor Schaefer asked if the software could be purchased using CDBG funds. Krieg responded that this would be an allowed use. Councilor Schaefer moved acceptance of the staff recommendation, seconded by Councilor Leonard. Chair Sprague asked if this software would allow for tracking housing inventory. Krieg responded that it would. Councilor Leonard commented that he seconded Councilor Schaefer's motion before realizing that he could not do so because he is not a member of this Committee. Councilor Schaefer moved again for acceptance of the staff recommendation, seconded by Councilor Tremble. Vote unless doubted, no doubt. 3. UPDATES A. COMMERCIAL KITCHEN Development Director Krieg reported that staff is currently interviewing architects. Consultant Caroline Paras is currently preparing a report that will likely be included on the Committee's next meeting agenda. Councilor Tremble requested that this report be sent to the Committee as early as possible for review prior to the next meeting. B. COMPREHENSIVE PLAN Krieg reported that the State has received the City's final draft of the Comprehensive Plan for review, to ensure compliance with State laws and policies and that the adoption procedure was carried out according to State regulations. Will likely have an update on its acceptance in the fall. Councilor Schaefer moved to go into Executive Session, seconded by Councilor Tremble. Meeting adjourned at 5:41 P.M. Meeting minutes respectfully submitted, Sarah Pritchard Admin. Asst. C&ED