The Solvang City Council made suggestions for an amended short-term rental ordinance for the second time in a month and a half during its Monday, Sept. 22, regular meeting.
In Discussion Item 8a, in an approximately 50-minute talk, councilmembers and Community Development Director Rafael Castillo went over the parameters of a new ordinance laying out policy for STRs, also known by some as Airbnbs, in residential area.
At its Aug. 11 meeting, the City Council directed staff to produce two draft ordinances for revisions to the short-term rental ordinance. One ordinance would allow short-term rentals (STR) only within the Village Mixed-Use (VMU) zoning district (formerly TRC zone), while grandfathering in certain existing permitted STR outside the VMU. A second draft ordinance would allow for STRs throughout the City in any zone that allows residential use, except for high-density residential zones. The current situation has most of the STRs in the downtown Solvang area, know as the Village Mixed-Use (VMU) are, with a few located in the R-3 area, a small region cut out in the eastern end of town.
Castillo reminded council that the main thing they were looking to decide was whether to have all the STRs limited to the VMUs or allow them in any part of the city. Council seemed to agree to keep them in the VMU
City Councilmember Mark Infanti said that he noticed that of the so-called STRs in the VMU, there were “22 or 23” (later re-estimated as 25 or 26) of the STRs that didn’t have permits. “We need to chase these people down and get them to obtain permits,” he said.
Fellow Councilmember Elizabeth Orona agreed: “We don’t have any kind of fine, no repercussions. Should we bring back fines for some consequences?”
Castillo answered, “We withheld going after them, because we want to be sure what their intentions are; maybe we can get them to turn in paperwork to make it legal.” It should be noted that STRs are subject to the Transit Occupancy tax, so if the city succeeds in getting the property owners to get permitted, that would mean tax dollars for Solvang.
City Manager Randy Murphy also noted that City Council Chelea O’Sullvian and the staff were working on a new code enforcement policy.
During Public Comment for the item, Solvang Chamber of Commerce Executive Director Tracy Beard spoke out against the STRs and the policy allowing them.
“As a representative of the business community; this is a poor decision [to allow the STRs],” she said.
“We need to have more clarity; it’s not compatible with the business community.
“With STRs, you’re taking away from hotels,” Beard continued. “STRs do not comply with ADA standards ([or the disabled. This is a bigger deal than what we think it is.”
Going back to council, Councilmember Claudia Orona said that while he understood the concerns for hotels, the STRs have been established in the VMU, and many of those property owners have been compliant with the city for those properties and shouldn’t be penalized.
“There would be a lot of angry people in the VMU if we told them they can’t do that anymore,” she said. “Rationale people have been compliant for years; it’s tough to suddenly tell them no.”
Council member Louise Smith, meanwhile, said tenants deserve the right to use STRs if that’s their prerogative.
“I don’t want to take away TOT from hotels, but STRs are a better option for some,” Smith said. “We need to look at how to expand, but only if we have a way to control it. We need to look at visitors who may need something other than hotel room.”
Ultimately, the council decided to give staff direction on bringing back an ordinance where the STRs are limited to the VMU, and to just 30 permitted STRs in that zone. Also, the councils agreed that they would not permit “homestays,” STRs where the property owner resides in the house at the same time as the tenants.
In another discussion item, Castillo introduced a report on the possibility of chain retailers in the city, especially the downtown area.
In his report, Castillo said that at the March 24 meeting, the City Council requested information on chain retailers, whether it was a problem, or it might be anticipated as a problem. Additionally, it was requested that information be brought forth regarding “ghost retail stores,” referring to the businesses that take up storefronts, but are more the “fulfillment center” or warehouse for filling online orders.
In discussion, the council determined that it doesn’t foresee a problem with chain stores moving in. National brands have minimal representation downtown as just Subway and Domino’s have location along Mission Drive, and a lesser-known clothing chain, Kahuna’s, took over the space on Alisal Road that housed Rasmussen’s
Claudia Orona even played what she termed as “devil’s advocate,” in expressing support for a story like Kahuna’s in Solvang.
“I’v been in town since 2008, and I’ve seen different chain retailers; they come and go. I’d caution against making regulations,” she said. I’d much rather have a Kahuna’s store or similar retailer than another cheap trinket store. If someone wants to try opening a chain store , let them and see how it goes.”
The item ended without action or directive to staff.
The next regular Solvang City Council meeting will be Monday, Oct. 13, at 6:30 p.m.
