HomeMy WebLinkAbout2023-09-18 Business and Economic Development Committee Minutes BUSINESS & ECONOMIC DEVELOPMENT COMMITTEE
Monday, September 18, 2023 @ 5:15 PM
City Council Chambers
MEETING MINUTES
City Councilors Present: Davitt, Leonard, Schaefer, Sprague, Tremble,
Yacoubagha.
City Staff Present: Collette, Krieg, Laurie, Stanicki.
Chair Sprague called the meeting to order at 6:25 P.M.
1. REPORT ON COMMUNITY DEVELOPMENT BLOCK GRANT
SPENDING PROJECTS, No action requested
Community Development Officer Robyn Stanicki presented to the Committee.
Reported that staff looked at the next four quarters of the CDBG budget to meet
timeliness requirements in regards to award expenditures. Reported that
benchmarks will now be met by the first quarter rather than by the third quarter as
previously projected. Staff is also completing the reporting from FY22 on
expenses, projects, and accomplishments. This information has been updated on
the City website.
Councilor Davitt expressed appreciation. Noted that it has been helpful to split
grant expenditures between CDBG funds and ARPA funds.
Councilor Yacoubagha stated that this seems to be the best way to invest this
amount of money in the community, especially in regards to housing efforts.
Chair Sprague outlined the various housing projects that have been funded.
Stanicki added that $872,000 was invested in housing projects during FY22.
2. HOUSING DISCUSSION, Action requested to review and edit
Development Director Anne Krieg presented to the Committee. Stated that staff
took Chair Sprague's draft of the housing action plan and created two
supplementary documents—an FAQ for the public, and a table for staff to compare
and track projects and tasks.
Chair Sprague stated that it is helpful to have concrete documents reflecting the
City's plan. Asked for a timeline on the projects/tasks outlined by staff in the table.
Krieg responded that the table is an early draft and intended to be a rough outline
at this point in time, and that staff capacity will dictate next steps and project
assignments.
Councilor Yacoubagha stated that Sprague's action plan was a helpful outline to
start the conversation, and that it is helpful to now see a coinciding outline of
specific actions.
Chair Sprague requested that a final draft with timelines be brought back to this
Committee and to the full City Council. Also noted that it may need review by the
Planning Board. Krieg responded that any actions that pertain to zoning would
require Planning Board review, but that otherwise it would depend on the specific
action whether it requires their review or not.
Chair Davitt asked if the Advisory on Committee on Racial Equity, Inclusion and
Human Rights would also be asked to review the plan. Krieg responded that it will
be brought to their meeting next week.
City Manager Debbie Laurie asked that Committee members submit their edits to
staff before it is posted on the City's website and social media for the public. Chair
Sprague responded that this will likely be helpful for the public and that staff may
want to highlight the data on approved housing projects that are pending
development. Councilor Davitt asked if these numbers include the individual units
in multi-dwelling projects. Krieg confirmed that they do. Councilor Schaefer asked
if they include projects that are presently being challenged legally. Krieg confirmed
that they do.
3. SHORT-TERM RENTALS, Action requested to provide staff direction
Planning Analyst Anja Collette presented to the Committee. Noted that the primary
questions presented by the Committee previously were in regards to the caps
instituted in other municipalities, how licenses would be issued, and the enactment
of a grace period for existing short-term rentals (STRs) vs. a sunset clause.
Reported that staff looked at the ordinances in four other municipalities— Portland,
Kittery, Kennebunkport, and Bar Harbor. Portland only instituted a cap on non-
hosted properties, and determined it by using the number of existing STRs at the
time of adoption and adding an additional amount to allow for growth. Noted that
their cap has consistently been met since the time of adoption and that they
presently have a waiting list for further licenses. Kittery used the same formula, but
instituted their cap on all STRs, hosted and non-hosted. Kennebunkport also
instituted their cap across all STRs, but determined it by using the ratio of existing
STRs at the time of adoption to the total number of housing units. They establish
a new cap number annually. Bar Harbor instituted their cap on non-hosted
properties only, and determined the number as 9% of their total dwelling units.
Their cap is also met consistently. All four municipalities issue their licenses on a
first-come, first-serve basis. Staff spoke with a consultant in New Hampshire who
advised that it is standard practice to enact a grace period at the time of policy
adoption. Staff is currently proposing a 6-month grace period. The drafted
ordinance presented to the Committee includes language for both a first-come,
first-serve issuance of licenses, as well a lottery method. The current data in
Bangor shows that there are 129 STRs total, 52 that are non-hosted, 28 that are
hosted, and 49 that are unknown. Staff recommends using the number of unknown
plus the number of non-hosted as a baseline for determining the cap. There are
several options included in the drafted ordinance.
Councilor Davitt stated support for a cap on non-hosted properties only, a 6-month
grace period, first-come, first-serve issuance of licenses, and that licenses be non-
transferrable upon the sale of a property. Asked if staff had a recommendation on
which formula should be used for determining the cap, and how this cap would be
increased over time. Development Director Krieg responded that 5% might be an
advisable growth rate.
Councilor Tremble asked what figure would be the baseline for determining the
cap. Councilor Yacoubagha asked how the "unknown" properties would be
factored in. Collette responded that staff recommends treating these properties as
non-hosted.
Councilor Schaefer asked to clarify the purpose of the grace period. Collette
responded that STR owners would be given 6 months to become compliant with
the regulations. Schaefer asked to confirm that a lottery system of license issuance
would not allow for this same grace period. Krieg responded that this would be the
case. Schaefer asked if staff has yet considered that individuals could join the
lottery with the intent of taking a license that they do not intend to use, with the
purpose of reducing the number of STRs in the City. Krieg responded that this has
been a problem in other municipalities, such as Bar Harbor, but that the
requirement of a life-safety inspection of one's property may deter individuals from
doing this. Schaefer expressed support on capping non-hosted properties at 1%
of the City's total dwelling units. Feels it would be beneficial to be able to say to
the public that 99% of the City's dwelling units are not being used for this. Asked
for clarification on whether accessory dwelling units (ADUs) and duplexes would
be considered hosted or not — staff confirmed that they would be considered
hosted as long as the property owner uses either the primary dwelling unit or half
of the duplex as their permanent residence.
Krieg noted that feedback has indicated that most hosted properties belong to
those who wish to supplement their income and that they have had fewer issues
and complaints due to the presence of supervision.
Councilor Schaefer expressed support for the current draft, issuing licenses on a
first-come, first-serve basis, and defining STRs as being used for 28 days or less.
Chair Sprague asked Councilor Schaefer for an opinion on whether there should
be an expiration date on the use of a license. Schaefer responded that she has not
considered it. Sprague suggested that this may be a way of preventing abuse of
the system by those who wish to apply for a license without the intent of ever using
it. Schaefer responded that this also coincides with the City's discussion of
handling vacant properties.
Chair Sprague asked if there has been any differentiation between workforce and
non-workforce housing for this use. Asked if it may be useful to grant licenses
based on documented need for these two uses. Schaefer responded that this may
be too complicated and that these two uses could be hard to define. Krieg noted
that an evaluation of the regulations will be conducted at the end of each year and
presented to City Council.
Chair Sprague noted that the upcoming Housing Production Study may help hone
in on an appropriate cap percentage.
Councilor Schaefer asked if there would a cap on the number of licenses issued
to one individual/entity. Collette responded that there would be a cap of no more
than 5 licenses per individual/entity, and that the language in the ordinance also
addresses possible loopholes related to LLCs. Noted that there is also a cap of
50% in multi-unit dwellings. Also noted that the lottery method may be better for
preventing "hoarding" of licenses.
Councilor Yacoubagha expressed concern that the lottery method had not
previously been recommended due to its being contested legally in other
municipalities. Chair Sprague added that it would be best to choose the method
that will expose the City to the least amount of legal issues.
Councilor Tremble asked to clarify the annual license renewal process. Does not
feel that it should be necessary for property owners to renew their licenses and
stated that he would not be in support of this requirement. Also stated support for
licenses being transferrable to new ownership upon the sale of a property. Collette
responded that the license renewal requirement is primarily for the sake of
inspections, to ensure property safety.
City Manager Laurie clarified Tremble's feedback. Upon the initial issuance of a
license, renewal and inspection should be required annually, but property owners
should not need to apply for a new license annually. Councilor Schaefer and Chair
Sprague expressed agreement with this. Collette clarified that this is how the
proposal is presently written. Noted that the lottery method would not be able to
allow for this, however. Tremble responded that he would support a first-come,
first-serve method.
Councilor Schaefer asked if licenses would be able to be revoked if there were
repeated issues with a property. Collette confirmed that they would be.
Councilor Davitt expressed agreement with Tremble's points regarding the
renewal process. Asked to clarify his support of licenses being transferrable upon
the sale of a property. Tremble confirmed that this is what he would like to see but
that it is not as important to him as other aspects.
Collette asked to clarify the Committee's direction on the institution of a cap.
Committee members confirmed their direction that the cap be on non-hosted
properties, determined by 1% of the total number of dwelling units city-wide.
4. PROPOSED ORDINANCE CHANGE TO DOWNTOWN PARKING
ADVISORY COMMITTEE, Action requested to provide staff direction or
recommend proposed changes to City Council
Development Director Krieg presented to the Committee. Stated that the current
ordinance requires that any recommendations from the Downtown Parking
Advisory Committee be forwarded to City Council for recommendation to a Council
committee. Recommends that this be amended to allow for Parking Committee
recommendations to be forwarded directly to a Council committee.
Councilor Schaefer moved acceptance of staff recommendation to amend the
Downtown Parking Advisory Committee ordinance, seconded by Councilor Davitt.
Vote unless doubted, no doubt.
5. OTHER BUSINESS
Development Director Krieg introduced new Economic Development Officer,
Stefanie MacLagan.
Meeting adjourned at 7:01 P.M.
Meeting minutes respectfully submitted,
Sarah Maquillan
Admin. Asst.
C&ED
