City Council defers vote on new short-term vacation rental rules

photo Councilman Russell Gilbert
photo Cynthia Stanley-Cash speaks during a meeting about the Wilcox Tunnel at the Eastdale Youth and Family Development Center Monday, Feburary 1, 2016.
photo Chattanooga City Council member Ken Smith speaks as a committee discusses a proposed change in the city's sound ordinance Tuesday, Aug. 12, 2014, in Chattanooga.

The Chattanooga City Council wants to get more input from the public before voting on new rules for short-term vacation rentals.

The proposed legislation calls for allowing short-term vacation rental operations within R1 residential zones, the standard designation for single-family dwellings in neighborhoods, by means of a certification process instead of through current rezoning procedures. Current zoning rules require a property planning to operate a short-term vacation rental to be zoned R3 or R4, which also allow apartments and offices.

On Tuesday, the body voted 9-0 in support of a request made by Councilman Russell Gilbert to postpone the evening's scheduled vote on short-term vacation rentals untilOct. 11. The body also agreed to hold a second public hearing on the matter on Sept. 27.

"I have had a lot of constituents who have asked questions about this and want a better understanding on this, so they could feel more comfortable with it," Gilbert said.

While the new regulations received positive responses during an Aug. 30 public hearing, some Chattanooga residents still have concerns.

Homeowners Cynthia Stanley-Cash of North Brainerd and Jane Pardue of Bal Harbor, who both spoke at that hearing, voiced concerns in phone interviews Tuesday.

"We don't feel represented," Pardue said. "Homeowners are the majority of the people, but they are not representing the majority. They are representing a minority of people in R1."

Pardue cited concerns with safety and falling property values during the first public hearing.

Both said the City Council has not really heard from homeowners yet.

"Since this is citywide, you've got to hear from homeowners," Stanley-Cash said.

Comments from the initial public hearing primarily focused on the merits of short-term vacation rental operations in general, Councilman Ken Smith said.

"I've got a lot of feedback from people in my district - some in favor, some not - but a lot of it is questioning how this exactly will be implemented," Smith said.

A guided discussion will help clarify matters, he said.

A short-term vacation rental is a single-family detached dwelling unit rented in part or entirely on a daily or weekly basis for up to 30 days, as defined by current regulations.

In other business, several members of the citizen group Accountability for Taxpayer Money asked the Council to consider making changes to a proposed housing payment-in-lieu-of tax program up for a vote on Sept. 20. The program offers tax abatement to developers, stipulating a certain percentage of housing should be affordable for low-income families.

The issue came before the council on Sept. 6, but members agreed to delay the vote following an outcry from the citizens group over a lack of public discussion.

Group member Tresa McCallie asked the body to consider shifting the burden of PILOT application and administrative costs on developers, citing policies adopted by Knoxville and Memphis.

In a written request submitted to the council, the group calls for the program to demand increased housing affordability, stronger "clawback" options to hold developers accountable for providing affordable housing and public hearings for proposed housing PILOT deals.

Contact staff writer Paul Leach at 423-757-6481 or pleach@timesfreepress.com. Follow on Twitter @pleach_tfp.

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