County of Prince Edward Short Term Accommodation (STA) - Prince Edward County
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County of Prince Edward Short Term Accommodation (STA) Planning and Licensing PUBLIC OPEN HOUSE JULY 17 & 18, 2018 Welcome! 1. Please sign in. 2. Feel free to review the boards. 3. Fill out the comment sheet following the presentation to let us know what you think. 4. Staff are available to answer questions and hear your comments.
1. Study Overview Purpose of this Public Open House • Inform residents about Short Term Accommodations (STAs). • Obtain input regarding the opportunity to regulate STAs in the County. Why now? • Airbnb and other new services are becoming significant sources of accommodation for visitors. • Other municipalities have taken the initiative to regulate STAs. The County needs to develop a local approach that is appropriate to ensure these commercial uses are properly integrated and that any negative impacts may be mitigated. What has been done to date? • In January 2017, the Chamber of Commerce in partnership with the County’s Community Development Department struck a committee to begin looking into whether STAs should be regulated. • In September 2017, Council directed the Planning department to consult and consider policy / regulation on STA’s. • According to an Airbnb report on Wine Country destinations: • The average Airbnb host in the County earned more than $10,000 in 2017. • Total host earning in Prince Edward County was more than $6.3 million. • Nearly 40,000 guests have visited the County using Airbnb. • The average visit was 2.5 days Short Term Accommodation (Planning and Licensing) Public Open Houses (July 17-18, 2018)
2. Why Regulate Short Term Accommodations? In recent years the County has seen significant increases in visitation, bringing both benefits and challenges. A lack of traditional hotels and motels combined with limited B&B availability and shifting consumer preferences has increased STAs in the market. As of July 2018, Airbnb and VRBO show hundreds of listings for the County. Traditionally, only waterfront areas and B&B’s were used. Now, STAs are increasingly established throughout the County and complaints from the public are on the rise. Minimal guidance, through the County’s by-laws, is available to offer an appropriate response. Clarity is needed regarding related land use and operational issues, including where STAs should be or not be permitted and suitable licensing requirements. Many municipalities are confronting the challenges of STAs as part of their housing stock, and we want a made-in-the-County solution that balances our desires to promote visitation while ensuring our neighbourhoods remain intact for residents. Short Term Accommodation (Planning and Licensing) Public Open Houses (July 17-18, 2018)
3. Why Regulate Short Term Accommodations? Pros & Cons of Having STAs • Pros: • More visitors help the economy • Helps homeowners with a new income stream • Provides visitors with non-traditional accommodation • STAs like B&Bs and cottage rentals were an important part of the economy long before Airbnb • Cons: • Fewer year-round rentals for residents and “dark streets” when neighbourhood homes are not rented • Can create concerns about parking, fire, garbage, safety and insurance if not properly controlled • Not necessarily appropriate in all rural and urban neighbourhoods • Need to be fairly regulated as other similar uses What Could Regulations Look Like? • A combination of legal tools can be used to achieve the desired balance, including a Licensing By-law and/or amendments to the Official Plan and Zoning By-law. • Official Plan and Zoning By-law Amendments can describe what areas and types of neighbourhoods may permit STAs. • A Zoning By-law could also include specific definitions of different kinds of accommodations with unique sets of rules about everything from how close STAs can be to one another to how many parking spaces they must provide. • A licensing by-law could require owners to register their properties and set out a range of details including a maximum number of people permitted in an STA. Short Term Accommodation (Planning and Licensing) Public Open Houses (July 17-18, 2018)
4. What We’ve Heard So Far As STAs availability has increased across the County, we have heard about the problems residents are confronting, as well as the needs of those renting out homes and rooms. We need to find the right mix of policies and regulations to balance the County’s housing and livability needs, while continuing to promote appropriate economic growth. Survey Results Issues to Consider • Earlier this summer we conducted a survey that received 1,500 • Should STAs be permitted and regulated? responses. We learned that: • 63% of 407 respondents said STAs provided an important • Where in the County should they be permitted? Only in rural or urban areas? source of annual income. Or in certain zones? • Only 199 out of 1,369 responses (14%) said they rent out properties other than their primary residence and 738 out of • Should we limit how many STAs can operate within a certain radius i.e., 1,359 (54%) said they have no plans to turn any part of their 500m? property into an STA. 26% said they do and 20% said either “Maybe” or that they’ve considered it. • Should there be a maximum number of permitted rental days? • About 21% of 204 respondents said they have more than 1 rental property. • Should temporary use permits be used to control how long a unit can be • STA locations were very spread out with 50% of 199 used as an STA, which may be renewed by the County? respondents indicating their properties were in rural areas, 40% in settlement areas, and 10% elsewhere. • Do we need to identify different categories of STA’s or include B&Bs? • Similarly, the majority of 1,299 respondents wanted STAs to operate in residential, waterfront and rural areas as well as • How can we ensure compliance? commercial areas. • Displacement of affordable housing was the most cited • If regulations are introduced, how might existing STA operators be affected concern, followed by parking, noise and garbage. Nearly 30% or transitioned to the new standards? said they had no concerns. Short Term Accommodation (Planning and Licensing) Public Open Houses (July 17-18, 2018)
5. Frequently Asked Questions Hotels/Motels Does the County have any plans to attract more hotel and motel businesses to reduce the STA demand? In 2017, the County conducted an accommodations feasibility study which determined that year-round occupancy rates may support a larger (60-100 rooms) traditional branded hotel or resort-type hotel. Staff has been working with various interested resort and hotel developers since then. A number of smaller inns, motels and boutique accommodations have opened in the County over the past 3 years. Given the changing preferences of visitors to the County, additional hotel accommodations may have a limited impact on STA demand. Bed and Breakfasts How might Bed and Breakfast establishments be addressed under new regulations? A bed and breakfast establishment is generally a permitted use in most residential zones subject to certain zoning by-law provisions. If new regulations are introduced for STAs, such as licensing, a consistent and fair approach across all residentially based tourist accommodations will be important. Appropriately treatment of the various forms of an STA (owner-operator, B&B, whole home, etc.) regarding any potential impacts onto adjacent properties or neighbourhoods is also needed. What would happen to existing Bed and Breakfasts? Any new regulations will need to address transitional provisions. Legal and inoffensive uses are generally ‘grandfathered’. Inappropriate uses may be prohibited. Are there existing by-laws pertaining to Bed and Breakfasts? The County’s Comprehensive Zoning By-law currently applies to Bed and Breakfast establishments: 3.21 BED AND BREAKFAST ESTABLISHMENT Shall mean a single detached dwelling in which the owner and operator occupies the dwelling and which provides no more than three guest rooms for the temporary accommodation of the traveling public. Section 4.4 of the By-law provides specific provisions that establish the following: shall be limited to a maximum of three (3) guest rooms per establishment; not be established or operated in an accessory building; one parking space shall be provided per guest room; shall not detract from the general character of the neighbourhood nor be a nuisance in terms of noise, traffic, parking and visual character Short Term Accommodation (Planning and Licensing) Public Open Houses (July 17-18, 2018)
6. Frequently Asked Questions Short Term Accommodations - General Do existing by-laws permit Short Term Accommodations? Current by-laws are silent on the definition or use of Short Term Accommodations. No distinction is made between a cottage that is occasionally rented versus homes that have been converted to commercial accommodation rentals. Are Short Term Accommodations required to register their business with The County? Are they licensed, and do they pay an annual fee? There is currently no business licensing by-law in place for Short Term Accommodations, therefore, there are also no licensing fees at this time. A licensing by-law and corresponding fee is one of many options available to the County for the regulation of Short Term Accommodations, but these options are still being reviewed with the County’s consultant. Draft regulations for public comment are anticipated in August of 2018. Are Short Term Accommodations taxed as a commercial business? If a commercial business owns Short Term Accommodations, are they or will they be taxed as a commercial business? Some Short Term Accommodations, like hotels or inns, are taxed as commercial properties, while those that are located in single family homes and/or apartments would be taxed at a residential rate even if used for Short Term Accommodations. The County is considering various options for regulating Short Term Accommodations. Examining the tax classes of these properties is largely a responsibility of the Municipal Property Assessment Corporation (MPAC) and not part of the current review from a licensing/zoning standpoint. Licensing and Regulations How would licensing and enforcement work? Licensing would typically address the following matters: Zoning By-law Compliance, Fire Safety Plan, Responsible Person Declaration form, Liability Insurance, Property Management Plan (e.g. parking, waste containerization, etc.), Site Servicing Brief (i.e. adequate sanitary services and potable water services), Etc. Enforcement would involve fines in the event of the absence of a license or a failure to comply with licensing provisions. The amount of the fine would be established within the licensing by-law, if passed. When would regulations or licensing take effect? The timing for implementation of any approved regulations or licensing has yet to be determined. What can I do if I have concerns about a nearby Short Term Accommodation? The County’s current by-laws are silent on the definition or use of Short Term Accommodations; however, things like burn permits/restrictions, noise by-law requirements, property standards by-law and other local regulations apply to all properties in The County, regardless of use. Short Term Accommodation (Planning and Licensing) Public Open Houses (July 17-18, 2018)
7. Who Else Regulates STAs? Town of the Blue Mountains (Pop: 7,000) • Thanks in large part to a popular ski resort and proximity to Georgian Bay, the Town’s population is increased greatly by tourists, particularly in the summer and winter. Concerns were increasingly raised about parking, garbage, nuisance, mischief and vandalism in neighbourhoods. • The Town currently has 278 recognized STAs, including 82 grandfathered. • Zoning and Licensing By-laws were implemented in 2011, following a significant Ontario Municipal Board (OMB) ruling that established municipalities can use Official Plan and Zoning regulations for STAs to ensure they achieve compatibility with existing neighbourhoods. The Town is currently updating its 7-year-old regime. • Identified types of accommodations, established where each could be located and regulated occupant loads, landscaping, garbage and other requirements. Town of Niagara-on-the-Lake (Pop: 18,000) • Similar to the County, Niagara-on-the-Lake has a tourism base driven largely by wineries and accommodations that are primarily smaller-scale inns and B&Bs • Instituted Official Plan, Zoning and Licensing changes, including an application process for STAs, in 2013 • Identified four categories of STAs, the most common of which are Bed & Breakfasts. • Maintains a list of more than 250 licensed properties. Licenses must be displayed and require submission of a floor plan, site plan, certificate of insurance and inspection by the Town City of Stratford (Pop: 32,000) • Another Ontario municipality with largely seasonal tourism, driven primarily by its theatre festival, also largely accommodated by inns and B&Bs. • The City is undertaking consultation on proposed regulations aimed at ensuring visitors have adequate safety, parking etc. and that STAs are not nuisances to neighbourhoods. • The suggestions include that STA owners are required to obtain a license, demonstrate adequate liability, limit rooms based on available parking and to display the license. Other Ontario municipalities looking at regulating STAs include the Cities of Ottawa, Kingston, Vaughan and Markham. Short Term Accommodation (Planning and Licensing) Public Open Houses (July 17-18, 2018)
8. Who Else Regulates STAs? District of Tofino, BC (Pop: 2,000) • The Vancouver Island District’s by-law differentiates between both Bed and Breakfasts and STAs. STAs are permitted in certain residential zones, all rural zones and one waterfront development zone. • Owners and operators of STAs are required to register their business and display their license. • By-law enforcement staff are actively engaged in inspections and investigations to ensure compliance. Alberni-Clayoquot Regional District, BC (Pop: 31,000) • Located on the west coast of Vancouver Island, the District found itself inundated with complaints about STA uses increasing in neighbourhoods where they were not permitted. • They decided to legalize STAs, with a detailed Temporary Use Permit that is good for up to 3 years (at the discretion of the Regional Board), which can be renewed once before a new application is required. • There are certain zones and neighbourhoods in which STAs are not permitted. Short Term Accommodation (Planning and Licensing) Public Open Houses (July 17-18, 2018)
9. Next Steps • We look forward to receiving your input on the County More Information of Prince Edward’s initiative to regulate Short Term • For more information and to download Accommodations. materials presented today, please visit: http://www.thecounty.ca/county- government/municipal-projects/short- • You can talk to staff here tonight, fill out the comment term-accommodations/ sheet, or get in touch with us afterwards • Please provide your input on the information Contact presented in this meeting by August 3, 2018. • To submit comments or request additional information, please contact: • Based on the input we receive, the goal is to produce Paul Walsh, draft by-laws and present them to the community for Manager of Planning feedback prior to bringing them to Council. 332 Picton Main Street Picton, Ontario, K0K 2T0 Email: pwalsh@pecounty.on.ca Telephone: 613.476.2148 ext. 2025 Short Term Accommodation (Planning and Licensing) Public Open Houses (July 17-18, 2018)
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