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2021-01-14 - Agendas - FinalD'Andre Jones Council Member Matthew Petty Council Member Ordinance Review Committee Meeting Agenda Thursday 5:30 p.m. on January 14, 2021 By Zoom 1. Quorum Established Sloan Scroggin Council Member Holly Hertzberg Council Member City Attorney Kit Williams will call the roll to determine whether a quorum (three members) is present. 2. Election of Chair for 2021 Any member may nominate a member including himself or herself to be Chair. Any member may make comments concerning who should be elected Chair. After all comments are finished, the members of the Ordinance Review Committee shall vote for their preference of Chair by stating his or her name. A majority of those members present is required for the election of the Chair for 2021. 3. An Ordinance to Amend § 161.22 Community Services and § 161.24 Urban Thoroughfare. 4. Review of Planning Commission's recommended Short -Term Rental Regulation Ordinance. 113 W. Mountain Fayetteville AR 72701 (479) 575-8313 www.fayetteville-ar.V 113 West Mountain Street City of Fayetteville, Arkansas Fayetteville, AR72701 (479) 575-8323 Legislation Text File #: 2020-1067, Version: 1 AMEND §161.22 COMMUNITY SERVICES AND § 161.24 URBAN THOROUGHFARE: AN ORDINANCE TO AMEND § 161.22 COMMUNITY SERVICES AND § 161.24 URBAN THOROUGHFARE BY CHANGING CERTAIN PERMITTED USES TO CONDITIONAL USES WHEREAS, the City Council adopted City Plan 2040 with objectives to promote context sensitive corridor planning and prioritize multi -modal street designs that treat walkability and cycling as core functions (Goal 3); and WHEREAS, City Plan 2040 includes a growth concept map designating areas of the city intended to develop into pedestrian -Friendly mixed -use nodes served by current or future transit service; and WHEREAS, the Community Services zoning district is often applied to areas where mixed -use development is desirable because its stated purpose is to encourage a mixture of residential and commercial uses in a traditional urban form; and WHEREAS, recent examples of development in Community Services districts utilizing only Use Unit 8 "Single Family Dwellings" in patterns indistinguishable from neighboring residential zones have failed to produce the intended variety of housing types or reserve space for future commercial development; and WHEREAS recent proposals for Community Services zones have drawn public criticism about the safety of traffic associated with Use Unit 18 "Gasoline service stations and drive-in/drive through restaurants" in areas with high pedestrian traffic or the compatibility of these uses with nearby residential areas; and WHEREAS, the Conditional Use Permit process allows the Planning Commission to apply a higher level of discretion to ensure development of these uses is safe, compatible, and appropriate. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby amends § 161.22 Community Services by removing Unit 8, Single-family dwellings; Unit 9, Two-family dwellings; and Unit 18, Gasoline service stations and drive-in/drive-through restaurants from subsection (13)(1) Permitted Uses and adding them to subsection (13)(2) Conditional Uses. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby amends § 161.24 Urban Thoroughfare by removing Unit 8, Single-family dwellings and Unit 9, Two-family dwellings from subsection (13)(1) Permitted Uses and adding them to subsection (13)(2) Conditional Uses. City of Fayetteville, Arkansas Page 1 of 2 Printed on 1/8/2021 powered by LegiStarTM File M 2020-1067, Version: Section 3: That the City Council of the City of Fayetteville, Arkansas hereby recognizes the vested rights of property owners who have purchased property for development based on existing zoning standards, and hereby exempts all unexpired large scale developments, small site improvement plans, large site improvement plans, preliminary plats, final plats, concurrent plats, and building permits approved within 6 months following the enactment of this ordinance. This exemption shall include any approved renewals or extensions pursuant to § 166.20 of the Unified Development Code and all subsequent phases of plats subject to this exemption. City of Fayetteville, Arkansas Page 2 of 2 Printed on 1/8/2021 powered by LegistarT^' ORDINANCE NO. AN ORDINANCE TO AMEND § 166.22 COMMUNITY SERVICES AND § 166.24 URBAN THOROUGHFARE BY CHANGING CERTAIN PERMITTED USES TO CONDITIONAL USES WHEREAS, the City Council adopted City Plan 2040 with objectives to promote context sensitive corridor planning and prioritize multi -modal street designs that treat walkability and cycling as core functions (Goal 3); and WHEREAS, City Plan 2040 includes a growth concept map designating areas of the city intended to develop into pedestrian -friendly mixed -use nodes served by current or future transit service; and WHEREAS, the Community Services zoning district is often applied to areas where mixed -use development is desirable because its stated purpose is to encourage a mixture of residential and commercial uses in a traditional urban form; and WHEREAS, recent examples of development in Community Services districts utilizing only Use Unit 8 "Single Family Dwellings" in patterns indistinguishable from neighboring residential zones have failed to produce the intended variety of housing types or reserve space for future commercial development; and WHEREAS recent proposals for Community Services zones have drawn public criticism about the safety of traffic associated with Use Unit 18 "Gasoline service stations and drive-in/drive through restaurants" in areas with high pedestrian traffic or the compatibility of these uses with nearby residential areas; and WHEREAS, the Conditional Use Permit process allows the Planning Commission to apply a higher level of discretion to ensure development of these uses is safe, compatible, and appropriate. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby amends § 161.22 Community Services by removing Use Unit 8, Single-family dwellings and Use Unit 9, Two- family dwellings from subsection (B)(1) Permitted Uses and adding them to subsection (B)(2) Conditional Uses. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby amends § 161.22 Community Services by removing Use Unit 18, Gasoline service stations and drive-in/drive- through restaurants from subsection (B)(1) Permitted Uses and adding them to subsection (B)(2) Conditional Uses. Section 3: That the City Council of the City of Fayetteville, Arkansas hereby amends § 161.24 Urban Thoroughfare by removing Use Unit 8, Single-family dwellings and Use Unit 9, Two- family dwellings from subsection (B)(1) Permitted Uses and adding them to subsection (B)(2) Conditional Uses. Section 4: That the City Council of the City of Fayetteville, Arkansas hereby recognizes the vested rights of property owners who have purchased property for development based on existing zoning standards, and hereby exempts all unexpired large scale developments, small site improvement plans, large site improvement plans, preliminary plats, final plats, concurrent plats, and building permits approved within 6 months following the enactment of this ordinance. This exemption shall include any approved renewals or extensions pursuant to § 166.20 of the Unified Development Code and all subsequent phases of plats subject to this exemption. PASSED and APPROVED this 19th day of January. APPROVED: LIONELD JORDAN, Mayor ATTEST: KARA PAXTON, City Clerk/Treasurer +CAP"' g4eAk4*(-T ORDINANCE NO. AN ORDINANCE TO AMEND § 118.01 APPLICABILITY OF CHAPTER 118 BUSINESS REGISTRY AND LICENSES, CHAPTER 151 DEFINITIONS, CHAPTER 161 ZONING REGULATIONS, § 162.01 ESTABLISHMENT/LISTING OF CHAPTER 162 USE UNITS, AND CHAPTER 163 USE CONDITIONS OF THE UNIFIED DEVELOPMENT CODE TO CLASSIFY THE TYPES OF SHORT-TERM RENTALS AND CREATE REGULATIONS TO PERMIT AND INSPECT THE RENTALS WHEREAS, in July of 2019 the City Council adopted Resolution 172-19 requesting the study and development of an ordinance for short-term rentals for their consideration; and WHEREAS, it is estimated that there are approximately 500-600 short-term rental units in Fayetteville; and WHEREAS, the Fayetteville City Code does not have specific rules for short-term rentals and they have been treated as hotels/motels in the zoning code which prevents them from legally operating in any residential single-family zoning district. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby amends § 118.01 Applicability of Chapter 118 Business Registry and Licenses, Chapter 151 Definitions, Chapter 161 Zoning Regulations, § 162.01 Establishment/Listing of Chapter 162 Use Units, and Chapter 163 Use Conditions of the Unified Development Code by adopting the changes as shown on Exhibit 1 attached hereto and made a part hereof classifying the types of short term rentals and creating regulations to permit and inspect short term rentals in the City of Fayetteville. PASSED and APPROVED this 1" day of December, 2020. APPROVED: By: _ LIONELD JORDAN, Mayor ATTEST: WE KARA PAXTON, City Clerk/Treasurer 02-24-20 PLANNING COMMISSION FAYETTEVILLE TITLE XI — BUSINESS REGULATIONS/ CHAPTER 118: STR EDITS IN STRIKEOUT -UNDERLINE CHAPTER 118: - BUSINESS REGISTRY AND LICENSES 118.01 -Applicability (A) General Businesses. (1) All businesses, institutions, corporations, LLCs, LLPs, partnerships, non-profit associations or corporations, sole proprietorships or other non -governmental entities with a physical address or which operates either a legally permitted home occupation or a short-term rental within the Fayetteville city limits shall be required to file for the City of Fayetteville Business Registry and License. A covered business or entity with multiple physical addresses in Fayetteville must obtain a separate business license for each such business address. (2) In addition, any person or non -governmental entity who has or should have a sales tax permit and operates out of a physical address within Fayetteville shall be required to file for the City of Fayetteville Business Registry and License. (3) In addition, any person or non -governmental entity who is engaged in any trade or occupation which requires federal or state licenses and who operates out of a physical address within Fayetteville shall be required to file for the City of Fayetteville Business Registry and License. (B) Religious Entities. Churches and other religious institutions are exempt from this chapter unless they are performing functions like daycare that must be licensed by the state or that generate revenue upon which state sales or use taxes must be paid. The city business license shall not be required for the religious entity but only for those functions that require a state license or upon which state sales or use taxes must be paid. (C) Minors Exempt. No individual under eighteen (18) years of age shall be required to register or obtain a business license. (D) Individual Landlords Renting Less Than Three (3) Dwelling Units Exempt. An individual landlord, not operating as a corporation, LLC, LLP, or other business entity, who rents out less than three (3) dwelling units, and no commercial, industrial, or institutional unit, site or building shall be exempt from this chapter. However, a landlord that operates a short-term residential rental shall not be exempt and must apply for and obtain a business license for each individual short-term rental. E Short-term rentals. A residential dwel I i ng unit port ion of a dwel ri nq unit. or room within a residential dwelling unit leased and/or rented to aquest(s) fora period of less than thirt consecutive (30) days. 1 Shod -term rental. Type 1. A short-term rental where the principal use of the prop-erty remains as a full-time residence. The occupants or owner rent their Primary residence as a short-term rental. A copy of the Homestead Tax Credit or long-term lease agreement for the sub ect property is required to be classified as aType 1 rental. Accessory dwelling units ADUs as defined in Unified Development Code Chapter 151 shall be considered a Type 1 short-term rental. 2 Short-term rental Type 2. A short-term rental that is not occu ied by a permanent resident. The owner lists this property full-time as a short-term rental and has no intention of having ermanent residents livingin the pro ert . A conditional use permit is re uired for a Type 2 short-term rental nor to the Q ity issuin q a business license except as defined in 118,01E 4 . 3 License Required: No dwelling unit in the City shall be used as a short-term rental unless: a The owner of the dwelling unit or o erator of the short-term rental possess a valid and current business license for the dwelling unit and fully complies with all legal requirements and duties 'imposed herein with respect to each and every short-term rental: and 02-24-20 PLANNING COMMISSION FAYETTEVILLE TITLE XV - UDC/ CHAPTER 163: STR EDITS IN STRIKEOUT -UNDERLINE 3 Occupancy- Maximum of two 2 people per bedroomplus two 2 with a maximum of ei ht 8 people regardless of the number of bedrooms for the entire unit. 4 Parking. Parking is limited to the maximum number of vehicles as allowed by the underl in zoning district for the residential building on the property. ice^ 5 ecial events are not germitted in a short-term rental. Example of special events include but are not limited to weddings, rece tions anniversaries rivate parties, fundraisers and business seminars. 5 Short-term rental units are ermitted in any,structure established as a ermanent residential dwellingincludin an accesso dwellin unit. No recreational vehicle trailer other vehicle or structure not classified as a permanent residential dwelling may be used as a short-term rental - EL 6 Month Start-up Period. After the enactment of the short-term rental ordinance existing short- term rental operators shall have 6 months to obtain a business license and be considered in compliance. After the &month start-up eriod all short-term rentai units must have a business license to be considered in compliance, To clualify for this exemption as a re -existing short- term rental satisfactoCy proof of o eration rior to the enactment date shall be rovsded to the city includin-g a copy of a back -dated advertisement listing the unit and a copy of a transaction prior to the adoption date documentin that the unit was utilized as a short-term rental. Short- term rentals must also successfully ass an inspection as described in 118.01E 9 e . The City has complete discretion in determining whether such submitted proof is sufficient and satisfactory. a Type 2 short-term rentals seeking a business license or germit under the 6-month start- up period will not be re aired to obtain a conditional use permit. Any Type 2 short-term rentals submitting a business license or permit after the 6-month grace period shall be rectuired to obtain a conditional use permit prior to the City issui ng a business license. 8 Exceptions. Exce ttons to the short-term rental standards except ro osals that would exceed the city-wide density maxmum may be granted by the Planning Commission as a conditional use permit. 9 Short-term rentals must cam ply with all applicable codes under Q ity Code Section 118.01 and successfully obtain a business license prior to operation. 02-24-20 PLANNING COMMISSION FAYETTEVILLE TITLE XV - UDC/ CHAPTER 163: STR EDITS IN STRIKEOUT -UNDERLINE CHAPTER 163: - USE CONDITIONS 163.01- Listing The use conditions set forth in this chapter are the following: Bed and breakfast facilities Carnival, circus, amusement park or similar temporary open-air enterprise Child care, nursery school Dance halls Facilities emitting odors and facilities handling explosives Home occupations Manufactured homes T Outdoor music establishments Sexually oriented businesses Short-term rentals Tandem lot development Wireless communications facilities 163.18 -- Short-term rentals A Generai Standards. (1) Residential Zoning Districts Short-term rentals may be Permitted in all zoning districts where residential uses are allowed by -right. 2 Commercial and Mixed Use Zoning Districts. Short-term rentals may be permitted in all zonin districts where hotel/motel uses are permitted by right and shall not count towards the Type 2 short-term rental density cap in these districts except in multi -family buildings ass ecified in Chapter 118 of the Fayetteville City Code. FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE CHAPTER 161: - ZONING REGULATIONS 161.02 - Zoning Compliance And Business License (A) Required. It shall be unlawful to use or occupy or permit the use or occupancy of any building or premises, or both, or part thereof hereafter created, erected, changed, converted, or wholly or partly altered, or enlarged in its use or structure until a business license has been issued by the Zoning and Development Administrator stating that the proposed use of the building or land conforms to the requirements of this chapter. (B) Conforming Uses. Uses permitted within the underlying zoning district shall be eligible for a business license, subject to §118 of the Fayetteville Code. (C) Nonconforming Uses. (1) Except for short-term rental units sub ect to chapter 163 of the UDC. uses within the following use unit categories established prior to September 7, 2010 and operating in a zoning district that does not currently allow the use, are for the purposes of zoning compliance determined to be an existing nonconforming use, may continue to operate and are eligible to obtain a city business license. The exemption shall not be construed as relieving the owner or operator of such business from the regulations of the business license ordinance, including grounds for suspension and revocation, or from any other applicable federal, state, or city regulations. Use Units Public protection facilities -ultural and recreational facilities Government facilities Agricultural Animal husbandry Limited business Eating places Neighborhood shopping goods Home occupation ffices, studios, and related services 02-24-20 PLANNING COMMISSION FAYETTEVILLE TITLE XI — BUSINESS REGULATIONS/ CHAPTER 118: STR EDITS IN STRIKEOUT -UNDERLINE (b) The owner has designated an agent, where said agent full complies with all legal requirements and duties imposed herein with respect to every short-term _rental. The owner may serve as their own agent. (4) 6 Month Start-up Period. After the enactment of the short term rental ordinance existing short term rental operators shall have 6 months to obtain a business license and be considered in tom liance. After the 6 month start-up period, all short term rental units must have a business pt license to be considered in compliance. To qualify for this exemion as a pre-existin g short- term rental satisfactory —proof _o-f_operation _prior to the enactment date shall be provided to the city -including a copy of a back -dated advertisement listing the unit and a copy of a transaction prior to the adoption date_ documenting that the unit was utilized as a short-term rental. Short- term rentals must also s uccessfully pass an inspection as described in § 118.01E 9 e . The City has complete_ discretion in determining whether such submitted proof is sufficient and satisfactory. T (a) Type 2 short-term rentals seeking a business license or permit under the 6-month start-up period will not be_reguired to obtain a conditional use permit. Any Type 2 short-term rentals submitting a business license or permit after the 6-month grace period shall be required to obtain a conditional use permit prior to the City issuing a business license. 5 No hosting platform shall facilitate or conduct any booking transaction for a short-term rental in the City without the short-term rental first obtaining and maintaining possession of the requisite business license. (6) A separate business license shalt be required for each dwelling unit used as a short-term rental. 7 Any change in ownership requires a new or amended business license. $ If any required contact information changes for the associated business license the person to whom the license was issued shall immediately notify the Development Services Department in writing. 9 License Ap2lication. The application for a business license shall include at minimum the following information from applicants. (a) The owners information including legal name. mailing address, _immediate contact phone number. and immediate contact E-mail address. (b) Information for the dwelling unit subject to the application, inclusive of the ;physical street address assigned by the City. (c) The type and total number of dwelling units located on the lot of record containing the dwelling unit subject to the application. M If the owner is not their own aoent. the owner desionated aoent's information includin legal name, mailing address, immediate contact phone number and immediate contact E- mail address. (e) Documentation of approval of a life safety and egress inspection by the City Building Safety Division for the dwelling unit subject to the application. (f) Proof of application for remittance of Hotel, Motel and Restaurant tax to the City of Fayetteville, and verification that all sales use, and Hotel, Motel and Restaurant taxes are current. (g) Any additional data as deemed necessary or desirable for permit approval by the Zoning and Development Administrator. License Renewals. Business licenses for short-term rentals shall be renewed in accordance with Chapter 118 of the Business Regulations (Business Registry and Licenses). 02-24-20 PLANNING COMMISSION FAYETTEVILLE TITLE XI — BUSINESS REGULATIONS/ CHAPTER 118: STR EDITS IN STRIKEOUT -UNDERLINE 11 Le al Duties of License Holders. An owner Rossessinq_a short-term rental license shall comply at all times with the following requirements: a Occu anc . Short-term rentals shall be subject to and may not exceed the occupancy limits approved with the business license. Exceptions to the occu anc standards for short- term rentals may be granted by the Planning Commission as a conditional usepermit- (b) Advertisements. A short-term rental shall not be advertised if it violates occupancy. density. safety, and any of the other provisions of the Fayetteville Code. No short-term rental unit shall be advertised prior to having obtained a business license and the business license number shall be included in the advertisement listing. No hosting platform or owner/agent may offer advertise book, facilitate or engage in short-term rental activity or advertisement that violates an rovision of the short-term rental code. c Information and Postin . Business licensees shall provide to guests and post conspicuously in the common area of the short-term rental unit the Cit hone number to report_a safety complaint. 12 Owner orAgent Accessibility. The property owner shall ensure that they or a designated agent are available at all times during —,quest occupancy, including nights and weekends in order to facilitate compliance with this section. For the PUrposes of these regulations, 'availability' means that the owner or agent is accessible by telephone, and able to be physically present at the short-term rental within one 1 hour of being contacted. 13 Guest records. The owner shall maintain summary quest registration records which shall contain the actual dates of occupancy,total number of guests per party per stay,and the rate(s) charged, but shall not contain any personall identifiable information about nests. Such records shall be maintained for three ears and shall be provided to the City upon request. 14 Health arrd safety. The owner shall ensure that each dwelling unit governed by this section complies with the applicable provisions of the Unified Development Code Chapter 173: Buildin Regulations. 15 Criminal activity- The owner shall timely report an known or reasonably suspected criminal activity by a guest to the Fayetteville Police Department, 16 Taxes and fees. Except for those instances in which a hosting platform hears the responsibility for collecting and remitting taxes and fees applicable to short-term rentals the property owner shall timely remit in full Fayetteville Hotel Motel and Restaurant tax and other applicable local state and federal taxes and City fees owed in connection with anV short-term rental. The failure of a hosting platform to collect and remit taxes and fees shall not relieve an owner of the obligation to pay taxes and fees owed pursuant to this section. (17) Ac►tl�ariza[ior to OccupyLUse, and Operate. Authorization to operate a short-term rental may be granted by the Zoning and Development Administrator through the issuance of a City of Fayetteville Business Registry and License business license). 18 Densitz For Noe 2 Snort -term Rentals. A city-wide density cap of two ercent 2% of all dwelling units in the Fayetteville city limits may be utilized as Type 2 rentals. Total dwelling units are determined from current United States Census Bureau and/or American Community Survey numbers whichever number is higher- A conditional use permit may notpermit: a] More Type 2 short-term rentals than what is allowed by the city-wide densitv ca b More than two 2 dwellin s units as Type 2 rentals within a multi-familydwelling complex, (cj Individual 2-family. 3 and 4-family buildings that are not a part of a multi -family complex shall have no more than one (1 ) Type 2 short term rental unit per building complex. d Type 2 short-term rentals in commercial and mixed -use zoning districts where hotel/motels are permitted by right shall not count towards the citywide density cap. 02-24-20 PLANNING COMMISSION FAYETTEVILLE TITLE XI — BUSINESS REGULATIONS/ CHAPTER 118: STR EDITS IN STRIKEOUT -UNDERLINE (19) Suspension and Revocation. If the Zoning and Development Administrator has reason to believe that any of the grounds specified in §118,03A] of the Fayetteville Code exist, or that any rental unit was rented for less than one full night —or to more than one part of quests for the same period of time or otherwise failed to comply with all terms and conditions of this section the Zonin and Develo meat Administrator m ay suspend or revoke the short-term rental's business license pursuant to the proGedures detailed in 118.03 and in 118.04 of the Fayetteville Code. (20) Short-term rentals must comply with all applicable codes under Unified Development Code Chapter 163.18 and successfully obtain a business license prior to operation. FAYETTEVILLE TITLE XV - UDC/ CHAPTER 151: STR EDITS IN STRIKEOUT -UNDERLINE CHAPTER 151: DEFINITIONS A-cient, Owner-Desi nated. A person designated by the owner of a property, where designee has a physical address within the City of Fayetteville, is accessible 24-hours a day, and otherwise in compliance with the UDC re uirements for short-term rentals. The owner may serve as their own agent. Bedroom. A fully enclosed portion of a building designed or intended to be used principally for slee in purposes• Booking transaction. Any contractual agreement between a quest and an owner relative to a short-term rental. Dwelling unit (zoning). One (1) room, or rooms connected together, constituting a separate, independent housekeeping establishment for owner occupancy, or rental or lease on a weekly, monthly, or longer basis, and physically separated from any other rooms or dwelling units which may be in the same structure, and containing independent cooking and sleeping facilities. Guest Shan[ -temp rental. Any person who occu ies a short-term rental. fora eriod of less than 3D consecutive days, pursuant to a short-term rental lease term andlor other like a reement for the purposes of temporary l_od ig ng. Host Sl7ort-term rental. The owners of a short-term rental who has authority to offer the dwellIng unit onion thereof, or a room within the dwelling unit as a legal short-term rental. Owner. A person who owns at least a 50 percent interest in a dwelling unit used for short-term rentals. Permanent residential dwelling- A structure that has been legally ermitted or is a legal, non -conforming structure allowed for permanent occupancy as a residential dwellin-CL. Hostinq Platfomi- A person or entity that participates in the short-term rental business by providingand collecting or receiving a fees for facilitatinq bookinci transactions throw h which a short-term rental host may offer a short-term rental to a short-term rental quest, Hosting platforms typically, though not always. facilitate booking transactions through an on line Platform that allows a short-term rental host to advertise the short-term rental through a website provided by the hosting platform and the hosting Lplatform conducts a transaction by which potential short-term rental quest reserve a uestroom s and arrange ogyment, whether the short-term rents! west a s rent d irectl to the 5f�ort-term rental host or to the hostin latform. Short-term rental. A residential dwelling unit -portion of a dwelling unit or room within a residential dwellin unit leased and/or rented to a uest s fora penod of less than thirty consecutive 30 da s. 5hart-term rental Ty ge I. A short-term rental where the principal use of the property remains as a full-time residence. The occupants or owner rent their prmaa residence as a short-term rental. A copy of the Homestead Tax Credit ar Inn -term lease a reement for the sub ect ra ert is re aired to be classified as a Type 1 rental. Accessory dwelling units ADUs as defined in Unified Development Code Chapter 151 shall be considered a TVpe 1 short-term rental. Shoil-term rental T c 2. A short-term rental that is not occupied b a ermanent resident. The owner lists this property fu11-time as a short-term rental and has no intention of h avi ng permanent residents fivi ng in the property. A conditional use permit is re wired for a Type 2 short-term rental prior to the City issuing a business license. FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE 161.06 - District RSF-2, Residential Single -Family - Two (2) Units Per Acre (B) Uses. (C) Permitted Uses. Unit 1 City-wide uses by right Unit 8 Single-family dwellings Unit 41 Accessory dwellings Unit 46 i _ Short-term rentals 161.07 - District RSF-4, Residential Single -Family - Four (4) Units Per Acre (B) Uses. (1) Permitted Uses. Unit 1 t City-wide uses by right Unit 8 1 Single-family dwellings Unit 41 ! Accessory dwellings Unit 46 Short-term rentals 161.08 - District RSF-7, Residential Single -Family - Seven (7) Units Per Acre (B) Uses. (1) Permitted Uses. Unit 1 City-wide uses by right Unit 8 Single-family dwellings Unit 41 Accessory dwellings r- Unit 46 Short-term rentals FAYETTEVILLE TITLE XV - UDC/ CHAPTER 162: STR EDITS IN STRIKEOUT -UNDERLINE Unit 36 Wireless communications facilities Manufactured homes Mini -storage units Unit 37 Unit 38 Unit 39 Auto salvage and junk yards Unit 40 Sidewalk Cafes Unit 41 + Accessory dwellings I Unit 42 Clean technologies Unit 43 Animal boarding and training Unit 44 Cluster Housing Development Unit 45 Small scale production Unit 46 Short-term rental i (0) Unit 14. Hotel, Motel, and Amusement Facilities. (1) Description. Unit 14 consists of hotels, motels, and certain types of amusement facilities. (2) Included Uses. Hotel Membership lodge Motel Motion picture theater Night club, not providing dancing or outdoor music l Tavern, not providing dancing or outdoor music Use Unit46 Short-term rental I&ailso nermitted within Use FAYETTEVILLE TITLE XV - UDC/ CHAPTER 162: STR EDITS IN STRIKEOUT -UNDERLINE CHAPTER 162: - USE UNITS 162.01- Establishment/Listing The various use units referred to in the zoning district provisions are herein listed in numerical order. Within the use units, the permitted uses are ordinarily listed in alphabetical order. In these use units where there is a preliminary descriptive statement (which may mention specific uses) in addition to the detailed list of uses, the detailed list shall govern. Unit 1 City-wide uses by right Unit 2 City-wide uses by conditional use permit Unit 3 Public protection and utility facilities Unit 4 Cultural and recreational facilities Unit 5 1 Government facilities Unit 6 ' Agriculture Unit 7 Animal husbandry I Unit 8 Single-family dwellings Unit 9 ; Two-family dwellings Unit 10 Three (3) and four (4) family dwellings Unit 11 Manufactured home park Unit 12a i Limited business Unit 12b I General business Unit 13 1 Eating places Unit 14 ' Hotel, motel and amusement facilities Unit 15 1 Neighborhood shopping goods Unit 16 1 Shopping goods FAYETTEVILLE TITLE XV - UDC/ CHAPTER 162: STR EDITS IN STRIKEOUT -UNDERLINE � - - - --- - Unit14 (UU) Unit 46 . Short-term rental. 1 ❑escri Lion. Unit 46 is proVided to allow a Permanent residential dwellino unit onion of a residential dwelling unit or room within a residential dwelling unit to be ]eased and/or rented to a nests fora triad of less than thin 30consecutive days. (2) Included Uses. LShort-term rentals 02-24-20 PLANNING COMMISSION FAYETTEVILLE TITLE XV - UDC/ CHAPTER 163: STR EDITS IN STRIKEOUT -UNDERLINE CHAPTER 163: - USE CONDITIONS 163.01- Listing The use conditions set forth in this chapter are the following: Bed and breakfast facilities Carnival, circus, amusement park or similar temporary open-air enterprise Child care, nursery school Dance halls Facilities emitting odors and facilities handling explosives Home occupations Manufactured homes Outdoor music establishments Sexually oriented businesses Short-term rentals Tandem lot development Wireless communications facilities 163.18 — Short-term rentals (A) General Standards. 1 Residential Zoning Districts. Short-term rentals may be permitted in all zonin districts where residential uses are allowed by_riS�ht. 2 Commercial and Mixed Use Zoning Districts. Short-term rentals may be germitted in all zoning districts where hotel/motel uses are permitted by right and shall not count towards the Type 2 short-term rental density car) in these districts exce t in multi -family buildings ass ecified in Chaoter 118 of the Fayetteville City Code. 02-24-20 PLANNING COMMISSION FAYETTEVILLE TITLE XV - UDC/ CHAPTER 163: STIR EDITS IN STRIKEOUT -UNDERLINE (3) Occupancy. Maximum of two (2)_people per bedroom, plus two , with a maximum of eight LZ people regardless of the number of bedrooms, for the entire unit. 4 Parking. Parking is limited to the maximum number of vehicles as allowed by the under) in zoning district for the residential building on the property. (5) Special events are not permitted in a short-term rental. Example of special events include, but are not limited to, weddings, receptions. anniversaries. private parties, fundraisers and business seminars. 6 Short-term rental units are permitted in any structure established as a permanent residential dwelling including an accessory dwelting unit. No recreational vehicle trailer. other vehicle or structure not classified as a permanent residential dwelling may be used as a short-term rental. (7) 6 Month Start -tin Period. After the enactment of the short-term _rental _ordinance, existing short- term rental operators shall have 6 months to obtain a business license and be considered in compliance- After the 6-month start-up period, all short-term rental units must have a business license to be considered In Compliance. To qualify for this exemption as a pre-existing short- term rental, satisfactory proof of operation prior to the enactment date shall be provided to the city including a copy of a back -dated advertisement listing the unit and a copy of a transaction prior to the adoption date documenting that the unit was utilized as a short-term rental. Short- term rentals must also successfully pass an inspection as described in 118.01 9 e . The City has com iete discretion in determining whether such submitted pFcof is sufficient and satisfactory. (a) Type 2 short-term rentals seeking a business license or permit under the 6-month start- up period wNl not be required to obtain a conditional use permit. Any Type 2_ short-term rentals submitting a business license or permit after the 6-month race period shall be re uired to obtain a conditional use permit prior to the City issuing a business license. 8 Exceptions. Exception to the short-term rental standards except proposals that would exceed the city-wide density maxmum may be granted by the Planning Commission as a conditional use permit. 9 Short-term rentals must comply with all applicable codes under City Code Section 118.01 and successfully obtain a business license prior to operation. 4 DEPARTMENTAL CORRESPONDENCE OFFICE OF THE CITY ATTORNEY TO: Mayor Jordan City Council CC: Susan Norton, Chief of Staff Garner Stoll, Development Services Director Mary McGetrick, Long Range Planner FROM: Kit Williams, City Attorney" I DATE: December 1, 2020 RE: Amendments to short-term rental proposal needed Kit Williams City Attorney Blake Pennington Assistant City Attorney Jodi Balker Paralegal Most owners, landlords, or operators of existing short-term rental units in Fayetteville will be allowed to continue to operate their short-term rentals without having to appear before and request the Planning Commission issue them an individualized short-term rental conditional use permit. Instead, these owners or operators only need to request and pass an inspection of the short-term rental premises. During this six month start-up period, the City's approval of this initial inspection will justify the Planning Division to issue to the owner, landlord, or operator a business license upon proof of previous operation of the short-term rental and payment of the license fee. In order to ensure that none of these owners, landlords, or operators of short-term rentals become a problem for their neighbors, I believe that we need to clearly authorize the Planning Commission to review the compatibility and lawful behavior of short-term guests and operators if the Planning Department determines that a citizen complaint against the short-term rental is substantiated. The proposal currently does not provide this suspension/revocation authority to the Planning Commission of the ordinance - created conditional use permits, but relies upon the business license procedure which contains no initial public hearing nor requirement that a short-term rental must be and remain compatible with its neighborhood. To accomplish this right to review these Code -authorized conditional use permits in the future for existing short-term rentals, some amendments are needed for §118.01 Applicability (E)(4) and other sections. I have attached a proposed amendment of (E)(4) to this memo. Other sections, especially the Definition section for Type 2 short-term rentals, also need amendment. This proposed ordinance needs to be left on its first reading tonight so staff can present the exhibit with all the needed changes for your consideration at your next meeting. PROPOSED AMENDMENT TO SECTION 118.01 APPLICABLITIY (E)(4) OF THE UDC (4) Six Month Start-up Period. (a) After the enactment of the short-term rental ordinance, existing short-term rental operators may temporarily continue to operate and shall have up to six months to obtain a business license and be considered in compliance. After the six month start-up period, all short- term rental units must have a business license to operate and be considered in compliance. To qualify for this exemption from having to petition the Planning Commission to obtain an individualized conditional use permit as a pre-existing short-term rental, satisfactory proof of operation within the last three years and prior to the enactment date must be provided to the City such as a copy of an advertisement listing the unit and a copy of a transaction documenting that the unit was utilized as a short-term rental within the applicable time period. Short-term rentals must also successfully pass an inspection as described in § 118.01(E)(9)(e) of the Unified Development Code to the City's satisfaction. (b) Existing Type 2 short-term rentals seeking a business license or permit within this six month start-up period will not be required to first obtain an individualized conditional use permit from the Planning Commission. However, all such conditional use permits authorized by this section shall be treated as a normal conditional use permit subject to review by the Planning Commission pursuant to § 163.14 of the Unified Development Code for continued validity, suspension or revocation for issues of compatibility, code or law violations if the Planning Department determines a violation complaint against a short-term rental is substantiated and refers it to the Planning Commission for review and determination. (c) All Type 2 short-term rentals submitting an application for a business license or permit after the six month grace period has expired shall be required to obtain an individualized conditional use permit from the Planning Commission and pass the City's premises inspection prior to the City being able to issue a business license. 41 DEPARTMENTAL CORRESPONDENCE OFFICE OF THE CITY ATTORNEY TO: Mayor Jordan City Council CC: Susan Norton, Chief of Staff Paul Becker, Finance Director Mary McGetrick, Long Range Planner Jonathan Curth Develo t M Kit Williams City Attorney Blake Pennington Assistant City Attorney Amen anager FROM: Kit Williams, City Attorney— __ DATE: January 12, 2021 RE: Planning Commission's Proposal for Short-term Rental Regulation Jodi Batker Paralegal Legal Dangers Of Authorizing Much Higher Occupancy Levels for Short -Term Rentals Than for Normal, Legal 30 Day Plus Rentals Some Short -Term Rental representatives or operators have demanded that the City grant even more density than the eight (8) persons per house proposed by the Planning Commission for short-term rental occupancy. As you know, in a single family zoning district, the number of not -all -related persons allowed to reside in a house is THREE (3). However, the proposal before you would almost TRIPLE this occupancy authorization to EIGHT (8) for a short-term rental. The City has sometimes had to prosecute owners who rented (as a normal long-term rental) their house to more than three (3) unrelated persons. This would have been as a response to neighborhood problems from over -occupancy of such house. If this Short -Term Rental ordinance is passed as proposed, every regular long-term rental landlord could challenge the decades old definition of "Family' that was examined and approved by the United States Department of Housing and Urban Development. I would hate to lose the protection that previous review and approval of our "Family" definition has given us. How could the City explain to a Judge or jury that it is rational to prohibit more than three unrelated persons in a normal long-term rental while the City allows as many as eight unrelated persons in a short-term rental? Can we prove that long-term tenants are inherently more disruptive to a neighborhood than short-term tenants? Common sense would probably place more concern about disruptive behavior on tenants only occupying the house for a day or two as opposed to tenants occupying a residence for at least a month and usually a year or longer. The City would probably lose such an Equal Protection of the Laws complaint from owners with long-term tenants. The likely result of such suit would not only be some Court ordered monetary damages and attorney fees to be paid by the City, but also the invalidity of the City's longstanding definition of "Family" for zoning considerations which has successfully resolved much of the over -occupancy problems for our neighborhoods during the last two decades. Risking that loss of over -occupancy protection for our neighborhoods so Short -Term Rental operators can make more money does not seem to be in our citizens' best interests. The City Council Members have the policy -making power to make such a change regardless of any legal cautions from me. However, please remember that because of the Private Property Protection Act, once the Council has increased the allowed density for a single-family residence, the Council probably cannot later go back to the former allowed density even if substantial problems are being caused to our neighborhoods. An owner/ operator could certainly allege such substantial reduction in the allowed number of "guests" had devalued the property of an operator of a rental house more than 20%. To maintain the reduction back to our current levels, the City would have to pay for the claimed losses of so many home and apartment owners that it would "break the bank." Thus, any change by the City Council to increase allowed density for rentals, short-term or otherwise, would probably have to be permanent. Definitions Need to be Changed to Clearly Distinguish Between Type 1 and Type 2 Short -Term Rentals I need to present proposed changes in Type 1 and Type 2 definitions to clarify what the Planning Commission probably intended, but did not express accurately enough to withstand possible legal challenges. Since such regulations will be interpreted by a Court in favor of the property owner/ operator of a Short - Term Rental and against the City if there is any ambiguity, we need to ensure the definitions are very clear and not susceptible to any confusion as to whom they apply. z Proposed Changes to Definitions of Type 1 and Type 2 Short -Term Rentals "A Type 1 short-term rental is where the owner occupies and lives at the residence for at least ten (10) months every calendar year, but may rent the residence as a short-term rental not more than two (2) months any calendar year. An owner who occupies and lives at a residence at least ten (10) months a year may use the residence's bedroom or Accessory Dwelling Unit(s) as short-term rental(s) for the entire year. This new privilege to operate a Type 1 short-term rental may be revoked by the City Council if the short-term rental's operation causes neighborhood problems or inconvenience. All occupancy limits shall be as prescribed by the UDC based upon the zoning district." If the City Council wants to authorize Type 2 short-term rentals, then its definition needs to be changed as follows: "A Type 2 short-term rental includes any short-term rental that does not qualify as a Type 1 short-term rental and is not a hotel, motel, campground, RV park, Bed and breakfast or similar commercial lodging entity in a properly zoned district. A conditional use permit (subject to revocation by the Planning Commission for causing neighborhood problems or inconvenience) is required for any Type 2 short-term rental to legally operate in Fayetteville. All occupancy limits shall be as prescribed by the UDC based upon the zoning district." 3 TO: FROM: MEETING DATE: CITY ❑F FAYETTEVILLE ARKANSAS City of Fayetteville City Council CITY COUNCIL MEMO Mary McGetrick, Long Range Planning Manger January 1311, 2021 SUBJECT: ADM 20-7000 Administrative Item (Amend Fayetteville Code of Ordinances: Short-term Residential Rentals): Submitted by the Development Services Department for revisions to the Fayetteville Code of Ordinances for short-term residential rentals. RECOMMENDATION: Staff recommends forwarding the proposed code change to the City Council with a recommendation for approval. RECOMMENDED MOTION: "I move to approve ADM 20-7000 as recommend by City staff." BACKGROUND: The short-term rental code amendments were approved by Planning Commission at the **** meeting. Staff presented a recommended code change along with alternatives. There were several members of the public at the meeting and a variety of perspectives were shared about how the city should handle short-term rentals. The recommended code amendments in this report have been revised to incorporate the legal recommendations from the City Attorney's office. The primary revisions from the City Attorney's office included relocating many of the short-term rental requirements from Chapter 163 into Chapter 118, Business Licenses, changing enforcement staff to the Development Services Director, replacing "shalls" in certain places with "mays", removing the requirement for liability insurance, and clarifying what is required for building inspection. A short-term rental (STR) is the leasing out of a furnished residential dwelling on a short-term basis, generally less than a month. It is estimated that there are approximately 500-600 STR units in Fayetteville. However, Fayetteville's codes do not have specific rules for STRs and they are classified as hotels/motels in the zoning code. This prevents them from legally operating in a single-family district and there are numerous STRs currently in violation. In July 2019 the City Council adopted Resolution 172-19 directing staff to study and develop an ordinance for STRs for their consideration. Public Input: As the first step in studying STRs, the City hosted a focus group on August 19, 2019. The focus group represented various perspectives including neighborhood representatives, concerned citizens, rental owners and managers, and hotel owners. The group was guided by a professional facilitator to identify key issues and recommendations in moving forward with local rules for STRs. On September 30, 2019, the city hosted an open public input meeting which allowed all attendees to provide input in writing and verbally on the issues identified by the focus group. The city staff continued to take comment from the public and elected officials over the last Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 few months. After reviewing the public comment and completing extensive research on many cities' short-term rental codes, the City's consultant on the project, Garver LLC, completed a first draft of revisions to the Fayetteville Code of Ordinance for STRs. This first draft was presented to the same focus group on January 15, 2020 for their review and comment. Staff presented the final draft ordinance, for comment, to the focus group on November 5th, 2020 DISCUSSION: The Development Services Department and their consultant, Garver LLC, have drafted amendments to the Fayetteville Code of Ordinances for short-term residential rentals. The primary issues proposed in the previous revisions include the following: • Location: STRs would be allowed by right in all zoning districts where residential dwellings and hotel/motel uses are allowed. • Type 1 and Type 2 STRs: There are two types of STRs. Type 1 is a full-time residence and Type 2 is a full-time STR. Type 1's are not subject to density limitations, Type 2's are subject to density limitations. • Residency: A permanent resident does not have to live in the STR dwelling. • Occupancy: Maximum of 2 people per bedroom plus 2, with a maximum ^f Q people regardless of the nurvmhor of bedr,,,,A definition of bedroom is included. • Permit: a business license must be obtained prior to operation. • Inspection: prior to approval of a business license the rental unit must pass a safety and egress inspection conducted by the Fayetteville Building Safety Division. A life safety and egress inspection will verify the basic life safety requirements like fire alarms and basic egress requirements like a door. The requirement for an inspection every three years has been removed; an inspection is only required for the initial license. • Grace period: 6 months for existing STRs to obtain inspection and business license. After the enactment of the short-term rental ordinance, existing short-term rental operators may temporarily continue to operate and shall have up to six months to obtain a business license and be considered in compliance. After the six month start-up period, all short- term rental units must have a business license to operate and be considered in compliance. To qualify for this exemption from having to petition the Planning Commission to obtain an individualized conditional use permit as a pre-existing short- term rental, satisfactory proof of operation within the last three years and prior to the enactment date must be provided to the City such as a copy of an advertisement listing the unit and a copy of a transaction documenting that the unit was utilized as a short- term rental within the applicable time period. Short-term rentals must also successfully pass an inspection as described in §118.01 (E)(9)(e) of the Unified Development Code to the City's satisfaction. Type 1 and 2 short-term rentals seeking a business license or permit under the 6-month start-up period which are currently operating in 2, 3 and 4 unit buildings in which more than 1 unit is being used as a short-term rental may obtain a business license for all currently operating short-term rentals. All Type 2 short-term rentals submitting an application for a business license or permit after the six month grace period has expired shall be required to obtain an individualized conditional use permit from the Planning Commission and pass the City's premises inspection prior to the City being able to issue a business license. G:\ETC\Development Services Review\2020\Development Services\20-7000 ADM Amend Code of Ord. - Short Term Residential Rentals Special events: No parties or special events allowed in STIRS by right. Parking: Parking is limited to the maximum number of vehicles as allowed by the underlying zoning district for the residential building on the property. Density limitations: Density limitations only apply to Type 2 STIRS. A city-wide density cap of one percent (2%) of all dwelling units in the Fayetteville city limits may be utilized as Type 2 rentals. Total dwelling units are determined from current United States Census Bureau and/or American Community Survey numbers, whichever number is higher. A conditional use permit may not permit the following: o (a) More Type 2 short-term rentals than what is allowed by the city-wide density cap. o (b) More than ten percent (10 %) dwellings units as Type 2 rentals within a multi- family dwelling complex o (c) Individual 2-family, 3 and 4-family buildings that are owned by the same person or entity are not a part of a multi -family complex shall have no more than one (1) Type 2 short term rental unit per building complex. o (d) Type 2 short-term rentals in commercial and mixed -use zoning districts where hotel/motel are permitted by right shall not count towards the city-wide density cap. o (e) Short-term rentals may be permitted in all zoning districts where hotel/motel uses are permitted by right and shall not count towards the Type 2 short-term rental density cap in these districts except in multi -family buildings as specified in Chapter Fees: STIRS would only be subject to the typical business license and occupancy inspection fees. Exceptions: Exceptions to the short-term rental code are subject to review as a conditional use permit. Request: Staff requests that the City Council amend chapter 118 of the Business Regulations and chapters 151, 161, 162, and 163 of the Unified Development Code for short-term rentals. The code changes are described above and shown in the attached strikeout -highlight version of the code. STAFF RECOMMENDATION: Staff recommends that the City Council approve the code changes as outlined above and in the attached ordinance. BUDGET/STAFF IMPACT: N/A Attachments/website: Proposed code changes shown in strikeout — Updated 1/10/21 City of Fayetteville short-term rental website http://www.favetteville-ar.gov/3801/Short-Term-Rentals G:\ETC\Development Services Review\2020\Development Services\20-7000 ADM Amend Code of Ord. - Short Term Residential Rentals 02-24-20 PLANNING COMMISSION FAYETTEVILLE TITLE XI — BUSINESS REGULATIONS/ CHAPTER 118: STIR EDITS IN STRIKEOUT -UNDERLINE CHAPTER 118: - BUSINESS REGISTRY AND LICENSES 118.01 -Applicability (A) General Businesses. (1) All businesses, institutions, corporations, LLCs, LLPs, partnerships, non-profit associations or corporations, sole proprietorships or other non -governmental entities with a physical address or which operates either a legally permitted home occupation or a short-term rental within the Fayetteville city limits shall be required to file for the City of Fayetteville Business Registry and License. A covered business or entity with multiple physical addresses in Fayetteville must obtain a separate business license for each such business address. (2) In addition, any person or non -governmental entity who has or should have a sales tax permit and operates out of a physical address within Fayetteville shall be required to file for the City of Fayetteville Business Registry and License. (3) In addition, any person or non -governmental entity who is engaged in any trade or occupation which requires federal or state licenses and who operates out of a physical address within Fayetteville shall be required to file for the City of Fayetteville Business Registry and License. (B) Religious Entities. Churches and other religious institutions are exempt from this chapter unless they are performing functions like daycare that must be licensed by the state or that generate revenue upon which state sales or use taxes must be paid. The city business license shall not be required for the religious entity but only for those functions that require a state license or upon which state sales or use taxes must be paid. (C) Minors Exempt. No individual under eighteen (18) years of age shall be required to register or obtain a business license. (D) Individual Landlords Renting Less Than Three (3) Dwelling Units Exempt. An individual landlord, not operating as a corporation, LLC, LLP, or other business entity, who rents out less than three (3) dwelling units, and no commercial, industrial, or institutional unit, site or building shall be exempt from this chapter. However, a landlord that operates a short-term residential rental shall not be exempt and must apply for and obtain a business license for each individual short-term rental. (E) Short-term rentals. A residential dwelling unit, portion of a dwelling unit, or room within a residential dwelling unit, leased and/or rented to a guest(s), for a period of less than thirty consecutive (30) days. (1) Short-term rental, Type 1. A short-term rental where the principal use of the property remains as a full-time residence. The occupants or owner rent their primary residence as a short-term rental. A copy of the Homestead Tax Credit or long-term lease agreement for the subject property is required to be classified as a Type 1 rental. Accessory dwelling units (ADUs) as defined in Unified Development Code Chapter 151 shall be considered a Type 1 short-term rental. (2) Short-term rental, Type 2. A short-term rental that is not occupied by a permanent resident. The owner lists this property full-time as a short-term rental and has no intention of having permanent residents living in the property. A conditional use permit is required for a Type 2 short-term rental prior to the City issuing a business license, except as defined in �118.01(E)(4). (3) License Required: No dwelling unit in the City shall be used as a short-term rental unless: (a) The owner of the dwelling unit or operator of the short-term rental possess a valid and current business license for the dwelling unit, and fully complies with all legal requirements and duties imposed herein with respect to each and every short-term rental; and 02-24-20 PLANNING COMMISSION FAYETTEVILLE TITLE XI — BUSINESS REGULATIONS/ CHAPTER 118: STIR EDITS IN STRIKEOUT -UNDERLINE (b) The owner has designated an agent, where said agent fully complies with all legal reauirements and duties imposed herein with respect to every short-term rental. The owner may serve as their own agent. (4) 6 Month Start-up Period. After the enactment of the short term rental ordinance, existing short term rental operators shall have 6 months to obtain a business license and be considered in compliance. After the 6 month start-up period, all short term rental units must have a business license to be considered in compliance. To qualify for this exemption as a pre-existing short- term rental, satisfactory proof of operation prior to the enactment date shall be provided to the city including a copy of a back -dated advertisement listing the unit and a copy of a transaction prior to the adoption date documenting that the unit was utilized as a short-term rental. Short- term rentals must also successfully pass an inspection as described in §118.01(E)(9)(e). The City has complete discretion in determining whether such submitted proof is sufficient and satisfactory. (a) After the enactment of the short-term rental ordinance, existing short-term rental operators may temporarily continue to operate and shall have up to six months to obtain a business license and be considered in compliance. After the six month start-up period, all short-term rental units must have a business license to operate and be considered in compliance. To qualify for this exemption from having to petition the Planning Commission to obtain an individualized conditional use permit as a pre- existing short-term rental, satisfactory proof of operation within the last three years and prior to the enactment date must be provided to the City such as a copy of an advertisement listing the unit and a copy of a transaction documenting that the unit was utilized as a short-term rental within the applicable time period. Short-term rentals must also successfully pass an inspection as described in §118.01(E)(9)(e) of the Unified Development Code to the City's satisfaction. (b) Type 1 and 2 short-term rentals seeking a business license or permit under the 6-month start-up period which are currently operating in 2, 3 and 4 unit buildings in which more than 1 unit is being used as a short-term rental may obtain a business license for all currently operating short-term rentals. (c) All Type 2 short-term rentals submitting an application for a business license or permit after the six month grace period has expired shall be required to obtain an individualized conditional use permit from the Planning Commission and pass the City's premises inspection prior to the City being able to issue a business license. No hosting platform shall facilitate or conduct any booking transaction for a short-term rental in the City without the short-term rental first obtaining and maintaining possession of the requisite business license. A separate business license shall be reauired for each dwellina unit used as a short-term rental Any change in ownership requires a new or amended business license. If any required contact information changes for the associated business license, the person to whom the license was issued shall immediately notify the Development Services Department in writina (9) License Application. The application for a business license shall include at minimum, the following information from applicants: (a) The property owner's information including legal name, mailing address, immediate contact phone number, and immediate contact E-mail address. (b) Information for the dwelling unit subject to the application, inclusive of the physical street address assigned by the City. 02-24-20 PLANNING COMMISSION FAYETTEVILLE TITLE XI — BUSINESS REGULATIONS/ CHAPTER 118: STIR EDITS IN STRIKEOUT -UNDERLINE (c) The type and total number of dwelling units located on the lot of record containing the dwelling unit subject to the application. (d) If the owner is not their own agent, the owner designated agent's information including legal name, mailing address, immediate contact phone number and immediate contact E- mail address. (e) Documentation of approval of a life safety and egress inspection by the City Building Safety Division for the dwelling unit subject to the application. Proof of application for remittance of Hotel, Motel and Restaurant tax to the City of Fayetteville, and verification that all sales, use, and Hotel, Motel and Restaurant taxes are current. (g) Any additional data as deemed necessary or desirable for permit approval by the Zoning and Development Administrator. 10) License Renewals. Business licenses for short-term rentals shall be renewed in accordance with Chapter 118 of the Business Regulations (Business Registry and Licenses). 02-24-20 PLANNING COMMISSION FAYETTEVILLE TITLE XI — BUSINESS REGULATIONS/ CHAPTER 118: STIR EDITS IN STRIKEOUT -UNDERLINE 11) Leoal Duties of License Holders. An owner oossessina a short-term rental license shall com at all times with the following requirements: (a) Occupancy. Short-term rentals shall be subject to, and may not exceed, the occupancy limits approved with the business license. Exceptions to the occupancy standards for short- term rentals may be aranted by the Plannina Commission as a conditional use permit. Advertisements. A short-term rental shall not be advertised if it violates occupancy, density, safety, and any of the other provisions of the Fayetteville Code. No short-term rental unit shall be advertised prior to having obtained a business license and the business license number shall be included in the advertisement listing. No hosting platform or owner/agent may offer, advertise, book, facilitate, or engage in short-term rental activity or advertisement that violates any provision of the short-term rental code. c) Information and Postina. Business licensees shall provide to auests and post uously in the common area of the short-term rental unit the City phone number to report a safety complaint. (12) Owner or Agent Accessibility. The property owner shall ensure that they or a designated agent are available at all times during quest occupancy, including nights and weekends, in order to facilitate compliance with this section. For the purposes of these regulations, `availability' means that the owner or agent is accessible by telephone, and, able to be physically present at the short-term rental within three (3) hour of being contacted if required and at the sole discretion of by emergency services or the Zoning and Development Administrator. (13) Guest records. The owner shall maintain summary guest registration records, which shall contain the actual dates of occupancy, total number of guests per party per stay, and the rate(s) charged, but shall not contain any personally identifiable information about guests. Such records shall be maintained for three years and shall be provided to the City upon request. (14) Health and safety. The owner shall ensure that each dwelling unit governed by this section complies with the applicable provisions of the Unified Development Code Chapter 173: Building Regulations. (15) Criminal activity. The owner shall timely report any known or reasonably suspected criminal activity by a quest to the Fayetteville Police Department. (16) Taxes and fees. Except for those instances in which a hosting platform bears the responsibility for collecting and remitting taxes and fees applicable to short-term rentals, the property owner shall timely remit in full Fayetteville Hotel, Motel and Restaurant tax and other applicable local, state, and federal taxes and City fees owed in connection with any short-term rental. The failure of a hosting platform to collect and remit taxes and fees shall not relieve an owner of the obliaation to pav taxes and fees owed pursuant to this section. (17) Authorization to Occupy, Use, and Operate. Authorization to operate a short-term rental may be aranted by the Zonina and Development Administrator throuah the issuance of a Citv of Fayetteville Business Registry and License (business license). (18) Density For Type 2 Short-term Rentals. A city-wide density cap of one percent (2%) of all dwelling units in the Fayetteville city limits may be utilized as Type 2 rentals. Total dwelling units are determined from current United States Census Bureau and/or American Community Survey numbers. whichever number is hiaher. A conditional use permit may not permit: (a) More Type 2 short-term rentals than what is allowed by the city-wide density cap. (b) More than ten (10) percent of total dwelling units as Type 2 rentals within a multi -family dwelling complex. c) Individual 2-family, 3 and 4-family buildings that are owned by the same person or entity_ and are not a part of a multi -family complex shall have no more than one (1) Type 2 2 short-term rentals in commercial and mixed -use zonina districts where hotel/motels are permitted by right shall not count towards the city-wide density cap. 02-24-20 PLANNING COMMISSION FAYETTEVILLE TITLE XI — BUSINESS REGULATIONS/ CHAPTER 118: STIR EDITS IN STRIKEOUT -UNDERLINE 19) Suspension and Revocation. If the Zoninq and Development Administrator has reason to believe that any of the grounds specified in §118.03(A) of the Fayetteville Code exist, or that any rental unit was rented for less than one full night, or to more than one part of guests for the same period of time, or otherwise failed to comply with all terms and conditions of this section, the Zoning and Development Administrator may suspend or revoke the short-term rental's business license pursuant to the procedures detailed in §118.03 and in §118.04 of the Fayetteville Code. (20) Short-term rentals must comply with all applicable codes under Unified Development Code Chapter 163.18 and successfully obtain a business license prior to operation. FAYETTEVILLE TITLE XV - UDC/ CHAPTER 151: STIR EDITS IN STRIKEOUT -UNDERLINE CHAPTER 151: DEFINITIONS Agent, Owner -Designated. A person designated by the owner of a property, where designee has a physical address within the City of Fayetteville, is accessible 24-hours a day, and otherwise in compliance with the UDC reauirements for short-term rentals. The owner may serve as their own aaent. Bedroom. A fully enclosed portion of a building designed or intended to be used principally for sleeping purposes. Booking transaction. Any contractual agreement between a quest and an owner relative to a short-term rental. Dwelling unit (zoning). One (1) room, or rooms connected together, constituting a separate, independent housekeeping establishment for owner occupancy, or rental or lease on a weekly, monthly, or longer basis, and physically separated from any other rooms or dwelling units which may be in the same structure, and containing independent cooking and sleeping facilities. Guest, Short-term rental. Any person who occupies a short-term rental, for a period of less than 30 consecutive days, pursuant to a short-term rental lease term and/or other like agreement, for the purposes of temporary lodging. Host, Short-term rental. The owner(s) of a short-term rental who has authority to offer the dwelling unit, portion thereof. or a room within the dwellina unit as a leaal short-term rental. Owner. A person who owns at least a 50 percent interest in a dwelling unit used for short-term rentals. Permanent residential dwelling. A structure that has been legally permitted or is a legal, non -conforming structure allowed for permanent occupancy as a residential dwelling. Hosting Platform. A person or entity that participates in the short-term rental business by providing and collecting or receiving a fee(s) for facilitating booking transactions through which a short-term rental host may offer a short-term rental to a short-term rental guest. Hosting platforms typically, though not always, facilitate booking transactions through an on line platform that allows a short-term rental host to advertise the short-term rental through a website provided by the hosting platform and the hosting platform conducts a transaction by which potential short-term rental guest reserve a guestroom(s) and arrange payment, whether the short-term rental guest pays rent directly to the short-term rental host or to the hosting platform. Short-term rental. A residential dwelling unit, portion of a dwelling unit, or room within a residential dwelling unit, leased and/or rented to a quest(s), for a period of less than thirty consecutive (30) days. Short-term rental, Type 1. A short-term rental where the principal use of the property remains as a full-time residence. The occupants or owner rent their primary residence as a short-term rental. A copy of the Homestead Tax Credit or long-term lease agreement for the subject property is required to be classified as a Type 1 rental. Accessory dwelling units (ADUs) as defined in Unified Development Code Chapter 151 shall be considered a Type 1 short-term rental. Short-term rental, Type 2. A short-term rental that is not occupied by a permanent resident. The owner lists this property full-time as a short-term rental and has no intention of having permanent residents living in the property. A conditional use permit is required for a Type 2 short-term rental prior to the City issuing a business license. FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE CHAPTER 161: - ZONING REGULATIONS 161.02 - Zoning Compliance And Business License (A) Required. It shall be unlawful to use or occupy or permit the use or occupancy of any building or premises, or both, or part thereof hereafter created, erected, changed, converted, or wholly or partly altered, or enlarged in its use or structure until a business license has been issued by the Zoning and Development Administrator stating that the proposed use of the building or land conforms to the requirements of this chapter. (B) Conforming Uses. Uses permitted within the underlying zoning district shall be eligible for a business license, subject to §118 of the Fayetteville Code. (C) Nonconforming Uses. (1) Except for short-term rental units subject to chapter 163 of the UDC, uses within the following use unit categories established prior to September 7, 2010 and operating in a zoning district that does not currently allow the use, are for the purposes of zoning compliance determined to be an existing nonconforming use, may continue to operate and are eligible to obtain a city business license. The exemption shall not be construed as relieving the owner or operator of such business from the regulations of the business license ordinance, including grounds for suspension and revocation, or from any other applicable federal, state, or city regulations. Use Units 3 Public protection facilities 4 Cultural and recreational facilities 5 Government facilities 6 Agricultural 7 Animal husbandry 12a Limited business 13 Eating places 15 Neighborhood shopping goods 24 Home occupation 25 Offices, studios, and related services FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE (2) Except for short-term rental units subject to chapter 163 of the UDC, uses within the following use unit categories established prior to July 15, 2003 and operating in a zoning district that does not currently allow the use, are for the purposes of zoning compliance determined to be an existing nonconforming use, may continue to operate and are eligible to obtain a city business license. The exemption shall not be construed as relieving the owner or operator of such business from the regulations of the business license ordinance, including grounds for suspension and revocation, or from any other applicable federal, state, or city regulations. Use Units 2 City-wide uses by conditional use permit 14 Hotel, motel and amusement facilities 16 Shopping goods 17 Transportation trades and services 18 Gasoline service stations & drive in/drive through restaurants 191 Commercial recreation, small sites 201 Commercial recreation, large sites 211 Warehousing and wholesale 221 Manufacturing 231 Heavy industrial Wholesale bulk petroleum storage 27 facilities with underground tanks 28 1 Center for collecting recyclable materials 291 Dance halls 30' Extractive uses FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE 31 Facilities emitting odors/handling explosives 32 Sexually oriented businesses 33 Adult live entertainment club or bar 341 Liquor stores 351 Outdoor music establishments 361 Wireless communications facilities 381 Mini -storage units 391 Auto salvage and junk yards 401 Sidewalk cafes 421 Clean technologies 431 Animal boarding and training 161.3 - District R-A, Residential -Agricultural (B) Uses. (1) Permitted Uses. Unit 1 City-wide uses by right Unit 3 Public protection and utility facilities Unit 6 I Agriculture Unit 7 I Animal husbandry Unit 8 Single-family dwellings FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE Unit 9 Two-family dwellings Unit 37 Manufactured homes Unit 41 1 Accessory dwellings Unit 43 1 Animal boarding and training Unit 46 Short-term rentals 161.4 -District RSF-.5, Residential Single -Family -One Half (%) Unit Per Acre (B) Uses. (1) Permitted Uses. Unit 1 City-wide uses by right Unit 8 Single-family dwellings Unit 41 Accessory dwellings Unit 46 Short-term rentals 161.5 - District RSF-1, Residential Single -Family - One (1) Unit Per Acre (B) Uses. (C) Permitted Uses. Unit 1 City-wide uses by right Unit 8 Single-family dwellings Unit 41 Accessory dwellings Unit 46 F Short-term rentals FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE 161.6 -District RSF-2, Residential Single -Family -Two (2) Units Per Acre (B) Uses. (C) Permitted Uses. Unit 1 City-wide uses by right Unit 8 Single-family dwellings Unit 41 Accessory dwellings Unit 46 Short-term rentals 161.7 - District RSF-4, Residential Single -Family - Four (4) Units Per Acre (B) Uses. (1) Permitted Uses. Unit 1 City-wide uses by right Unit 8 Single-family dwellings Unit 41 Accessory dwellings Unit 46 Short-term rentals 161.8 - District RSF-7, Residential Single -Family - Seven (7) Units Per Acre (B) Uses. (1) Permitted Uses. Unit 1 City-wide uses by right Unit 8 Single-family dwellings Unit 41 Accessory dwellings Unit 46 Short-term rentals FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE 161.9 - District RSF-8, Residential Single -Family - Eight (8) Units Per Acre (B) Uses. (1) Permitted Uses. Unit 1 City-wide uses by right Unit 8 Single-family dwellings Unit 41 Accessory dwellings Unit 46 Short-term rentals 161.10 - District RSF-18, Residential Single -Family - Eighteen (18) Units Per Acre (B) Uses. (1) Permitted Uses. Unit 1 I City-wide uses by right Unit 8 I Single-family dwellings Unit 41 I Accessory dwellings Unit 46 Short-term rentals 161.11- District RI-12, Residential Intermediate, Twelve (12) Units Per Acre (B) Uses. (1) Permitted Uses. Unit 1 City-wide uses by right Unit 8 Single-family dwellings Unit 9 Two (2) family dwellings Unit 10 Three (3) and four (4) family dwellings FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE Unit 41 Accessory dwellings Unit 44 Cluster Housing Development Unit 46 Short-term rentals 161.12 - District RI-U, Residential Intermediate - Urban (B) Uses. (1) Permitted Uses. Unit 1 City-wide uses by right Unit 8 Single-family dwellings Unit 9 Two (2) family dwellings Unit 10 Three (3) and four (4) family dwellings Unit 41 Accessory dwellings Unit 44 Cluster housing development Unit 46 Short-term rentals 161.13 - District RMF-6, Residential Multi -Family - Six (6) Units Per Acre (B) Uses. (1) Permitted Uses. Unit 1 City-wide uses by right Unit 8 Single-family dwellings Unit 9 Two-family dwellings FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE Unit 10 Three (3) and four (4) family dwellings Unit 26 Multi -family dwellings Unit 41 Accessory dwellings Unit 44 Cluster Housing Development Unit 46 Short-term rental 161.14 - District RMF-12, Residential Multi -Family - Twelve (12) Units Per Acre (B) Uses. (1) Permitted Uses. Unit 1 City-wide uses by right Unit 8 Single-family dwellings Unit 9 Two-family dwellings Unit 10 Three (3) and four (4) family dwellings Unit 26 Multi -family dwellings Unit 41 Accessory dwellings Unit 44 Cluster Housing Development Unit 46 Short-term rental 161.15 - District RMF-18, Residential Multi -Family - Eighteen (18) Units Per Acre (B) Uses. (1) Permitted Uses. FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE Unit 1 City-wide uses by right Unit 8 Single-family dwellings Unit 9 Two-family dwellings Unit 10 Three (3) and four (4) family dwellings Unit 26 Multi -family dwellings Unit 41 Accessory dwellings Unit 44 Cluster Housing Development Unit 46 Short-term rental 161.16 - District RMF-24, Residential Multi -Family - Twenty -Four (24) Units Per Acre (B) Uses. (1) Permitted Uses. Unit 1 City-wide uses by right Unit 8 Single-family dwellings Unit 9 Two-family dwellings Unit 10 Three (3) and four (4) family dwellings Unit 26 Multi -family dwellings Unit 41 Accessory dwellings Unit 44 Cluster Housing Development Unit 46 Short-term rental FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE 161.17 - District RMF-40, Residential Multi -Family - Forty (40) Units Per Acre (B) Uses. (1) Permitted Uses. Unit 1 City-wide uses by right 'I Unit 8 Single-family dwellings Unit 9 Two-family dwellings Unit 10 Three (3) and four (4) family dwellings Unit 26 Multi -family dwellings Unit 41 Accessory dwellings Unit 44 Cluster Housing Development Unit 46 Short-term rental 161.18 - NS-L, Neighborhood Services - Limited (B) Uses. (1) Permitted Uses. Unit 1 City-wide uses by right Unit 8 Single-family dwellings Unit 9 Two (2) family dwellings Unit 10 Three (3) and four (4) family dwellings Unit Limited Business 12a Unit 24 Home occupations FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE Unit 40 Sidewalk cafes Unit 41 Accessory dwelling units Unit 44 Cluster housing development Unit 46 Short-term rental 161.19 - NS-G, Neighborhood Services - General (B) Uses. (1) Permitted Uses. Unit 1 1 City-wide uses by right Unit 8 1 Single-family dwellings Unit 9 1 Two-family dwellings Unit 10 I Three (3) and four (4) family dwellings Unit 12b I General business Unit 24 1 Home occupations Unit 40 Sidewalk cafes Unit 41 Accessory dwelling units Unit 44 Cluster housing development Unit 46 Short-term rental 161.20 - District R-O, Residential Office (B) Uses. FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE (1) Permitted uses. Unit 1 I City-wide uses by right Unit 5 I Government facilities Unit 8 I Single-family dwellings Unit 9 I Two-family dwellings Unit 12a . Limited business Unit 25 I Offices, studios, and related services Unit 41 I Accessory dwellings Unit 44 Cluster Housing Development Unit 46 Short-term rental -I 161.22 - Community Services (B) Uses. (1) Permitted Uses. Unit 1 City-wide uses by right Unit 4 Cultural and recreational facilities Unit 5 Government facilities Unit 8 Single-family dwellings Unit 9 Two-family dwellings Unit 101Three (3) and four (4) family dwellings Unit 13 Eating places FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE Unit 15 Neighborhood Shopping goods Gasoline service stations and drive - Unit 18 in/drive through restaurants Unit 24 Home occupations Unit 25 Offices, studios and related services Unit 26 Multi -family dwellings Unit 40 Sidewalk Cafes Unit 41 Accessory dwellings Unit 44 Cluster Housing Development Unit 45 Small scale production Unit 46 Short-term rental 161.24 - Urban Thoroughfare (B) Uses. (1) Permitted Uses. Unit 1 I City-wide uses by right Unit 4 1 Cultural and recreational facilities Unit 5 1 Government facilities Unit 8 I Single-family dwellings Unit 9 I Two (2) family dwellings Unit 10 Three (3) and four (4) family dwellings FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE Unit 13 I Eating places Hotel, motel and amusement Unit 14 services Unit 16 I Shopping goods Unit 17 I Transportation trades and services Gasoline service stations and drive - Unit 18 in/drive through restaurants Unit 19 Commercial recreation, small sites Unit 24 Home occupations Offices, studios, and related Unit 25 services Unit 26 Multi -family dwellings Unit 34 I Liquor store Unit 40 I Sidewalk cafes Unit 41 I Accessory Dwellings Unit 44 I Cluster Housing Development Unit 45 Small scale production Unit 46 Short-term rental 161.25 - District C-3, Central Commercial (B) Uses. (1) Permitted Uses. FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE Unit 1 I City-wide uses by right Unit 4 1 Cultural and recreational facilities Unit 5 1 Government facilities Unit 13 1 Eating places Unit 14 Hotel, motel, and amusement facilities Unit 16 I Shopping goods Gasoline service stations & drive-in Unit 18 restaurants Unit 19 Commercial recreation, small sites Unit 25 1 Offices, studios, and related services Unit 26 1 Multi -family dwellings Unit 34 1 Liquor stores Unit 40 1 Sidewalk Cafes Unit 44 1 Cluster Housing Development Unit 45 Small scale production Unit 46 Short-term rental 161.26 - Downtown Core (B) Uses. (1) Permitted Uses. Unit 1 City-wide uses by right FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE Unit 4 1 Cultural and recreational facilities Unit 5 I Government facilities Unit 8 I Single-family dwellings Unit 9 I Two-family dwellings Three (3) and four (4) family Unit 10 dwellings Unit 13 I Eating places Hotel, motel, and amusement Unit 14 facilities Unit 16 I Shopping goods Unit 17 I Transportation trades and services Unit 19 I Commercial recreation, small sites Unit 24 I Home occupations Offices, studios, and related Unit 25 services Unit 26 1 Multi -family dwellings Unit 34 Liquor stores Sidewalk Cafes Accessory dwellings Cluster Housing Development Small scale production Short-term rental Unit 40 Unit 41 Unit 44 Unit 45 Unit 46 FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE 161.27 - Main Street/Center (B) Uses. (1) Permitted uses. Unit 1 I City-wide uses by right Unit 4 1 Cultural and recreational facilities Unit 5 1 Government facilities Unit 8 1 Single-family dwellings Unit 9 1 Two-family dwellings Unit 10 I Three (3) and four (4) family dwellings Unit 13 1 Eating places Unit 14 Hotel, motel, and amusement facilities Unit 16 Shopping goods Unit 17 I Transportation trades and services Unit 19 Commercial recreation, small sites Unit 24 Home occupations 1 Unit 25 Offices, studios, and related services I Unit 26 Multi -family dwellings Unit 34 Liquor stores Unit 40 Sidewalk Cafes Unit 41 Accessory dwellings FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE Unit 44 Cluster Housing Development Unit 45 Small scale production Unit 46 Short-term rental 161.28 - Downtown General (B) Uses. (1) Permitted Uses. Unit 1 City-wide uses by right Unit 4 Cultural and recreational facilities Unit 5 Government facilities Unit 8 Single-family dwellings Unit 9 Two-family dwellings Unit 10 Three (3) and four (4) family dwellings Unit 13 Eating places Unit 15 Neighborhood shopping goods Unit 24 Home occupations Unit 25 Offices, studios, and related services Unit 26 Multi -family dwellings Unit 40 Sidewalk Cafes Unit 41 Accessory dwellings Unit 44 Cluster Housing Development FAYETTEVILLE TITLE XV - UDC/ CHAPTER 161: STR EDITS IN STRIKEOUT -UNDERLINE Unit 45 Small scale production Unit 46 Short-term rental 161.29 - Neighborhood Conservation (B) Uses. (1) Permitted Uses. Unit 1 City-wide uses by right Unit 8 Single-family dwellings Unit 41 Accessory dwellings Unit 46 Short-term rental I FAYETTEVILLE TITLE XV - UDC/ CHAPTER 162: STIR EDITS IN STRIKEOUT -UNDERLINE CHAPTER 162: - USE UNITS 162.01 - Establishment/Listing The various use units referred to in the zoning district provisions are herein listed in numerical order. Within the use units, the permitted uses are ordinarily listed in alphabetical order. In these use units where there is a preliminary descriptive statement (which may mention specific uses) in addition to the detailed list of uses, the detailed list shall govern. Unit 1 City-wide uses by right Unit 2 City-wide uses by conditional use permit I Unit 3 Public protection and utility facilities Unit 4 Cultural and recreational facilities Unit 5 Government facilities Unit 6 Agriculture Unit 7 1 Animal husbandry Unit 8 1 Single-family dwellings Unit 9 1 Two-family dwellings Unit 10 1 Three (3) and four (4) family dwellings Unit 11 1 Manufactured home park Unit 12a I Limited business Unit 12b General business Unit 13 Eating places Unit 14 I Hotel, motel and amusement facilities Unit 15 I Neighborhood shopping goods Unit 16 Shopping goods -I FAYETTEVILLE TITLE XV - UDC/ CHAPTER 162: STIR EDITS IN STRIKEOUT -UNDERLINE Unit 17 Transportation Trades and services Unit 18 Gasoline service stations and drive-in/drive through restaurants Unit 19 Commercial recreation, small sites Unit 20 I Commercial recreation, large sites Unit 21 I Warehousing and wholesale Unit 22 I Manufacturing Unit 23 1 Heavy industrial Unit 24 1 Home occupation Unit 25 1 Offices, studios, and related services Unit 26 1 Multi -family dwellings Wholesale bulk petroleum storage facilities Unit 27 with underground storage tanks Unit 28 I I Center for collecting recyclable materials Unit 29 I Dance halls Unit 30 I Extractive uses Facilities emitting odors & facilities Unit 31 handling explosives Unit 32 I Sexually oriented business Unit 33 I Adult live entertainment club or bar � Unit 34 I Liquor stores Unit 35 'I Outdoor music establishments FAYETTEVILLE TITLE XV - UDC/ CHAPTER 162: STIR EDITS IN STRIKEOUT -UNDERLINE Unit 36 Wireless communications facilities Unit 37 Manufactured homes Unit 38 Mini -storage units Unit 39 Auto salvage and junk yards Unit 40 Sidewalk Cafes Unit 41 Accessory dwellings Unit 42 Clean technologies Unit 43 Animal boarding and training Unit 44 Cluster Housing Development Unit 45 Small scale production Unit 46 Short-term rental (0) Unit 14. Hotel, Motel, and Amusement Facilities. (1) Description. Unit 14 consists of hotels, motels, and certain types of amusement facilities. (2) Included Uses. Hotel Membership lodge Motel Motion picture theater Night club, not providing dancing or outdoor music I Tavern, not providing dancing or outdoor music Use Unit 46, Short-term rental is also permitted within Use FAYETTEVILLE TITLE XV - UDC/ CHAPTER 162: STIR EDITS IN STRIKEOUT -UNDERLINE Unit 14 (UU) Unit 46. Short-term rental. Unit 46 is provided to allow a permanent residential dwelling unit, portion of a ailing unit, or room within a residential dwelling unit, to be leased and/or rented to a guest(s) Tor a penoa oT iess Included Uses. Short-term rentals 02-24-20 PLANNING COMMISSION FAYETTEVILLE TITLE XV - UDC/ CHAPTER 163: STIR EDITS IN STRIKEOUT -UNDERLINE CHAPTER 163: - USE CONDITIONS 163.01 - Listing The use conditions set forth in this chapter are the following: Bed and breakfast facilities Carnival, circus, amusement park or similar temporary open-air enterprise Child care, nursery school Dance halls Facilities emitting odors and facilities handling explosives Home occupations Manufactured homes Outdoor music establishments Sexually oriented businesses Short-term rentals Tandem lot development Wireless communications facilities 163.18 —Short-term rentals (A) General Standards. Residential Zoning Districts. Short-term rentals may be permitted in all zoning districts where residential uses are allowed by riaht. (2) Commercial and Mixed Use Zoning Districts. Short-term rentals may be permitted in all zoning districts where hotel/motel uses are permitted by right and shall not count towards the Type 2 short-term rental density cap in these districts except in multi -family buildings as specified in Chapter 118 of the Fayetteville City Code. 02-24-20 PLANNING COMMISSION FAYETTEVILLE TITLE XV - UDC/ CHAPTER 163: STIR EDITS IN STRIKEOUT -UNDERLINE (3) Occupancy. Maximum of two (2) people per bedroom, plus two (2), w4h a ga*ir- , ,m r,f�� ^^^^I^ regardless ^f the number ^f bedrooms for the entire unit. (4) Parking. Parking is limited to the maximum number of vehicles as allowed by the underlying zoning district for the residential building on the property. (5) Special events are not permitted in a short-term rental. Example of special events include, but are not limited to, weddings, receptions, anniversaries, private parties, fundraisers and business seminars. (6) Short-term rental units are permitted in any structure established as a permanent residential dwelling including an accessory dwelling unit. No recreational vehicle, trailer, other vehicle or structure not classified as a permanent residential dwelling may be used as a short-term rental. (7) 6 Month Start-up Period. After the enactment of the short-term rental ordinance, existing short- term rental operators shall have 6 months to obtain a business license and be considered in compliance. After the 6-month start-up period, all short-term rental units must have a business license to be considered in compliance. To qualify for this exemption as a pre-existing short- term rental, satisfactory proof of operation prior to the enactment date shall be provided to the city including a copy of a back -dated advertisement listing the unit and a copy of a transaction prior to the adoption date documenting that the unit was utilized as a short-term rental. Short- term rentals must also successfully pass an inspection as described in §118.01(E)(9)(e). The City has complete discretion in determining whether such submitted proof is sufficient and satisfactory. After the enactment of the short-term rental ordinance, existing short-term rental operators may temporarily continue to operate and shall have up to six months to obtain a business license and be considered in compliance. After the six month start-up period, all short-term rental units must have a business license to operate and be considered in compliance. To qualify for this exemption from having to petition the Planning Commission to obtain an individualized conditional use permit as a pre- existing short-term rental, satisfactory proof of operation within the last three years and prior to the enactment date must be provided to the City such as a copy of an advertisement listing the unit and a copy of a transaction documenting that the unit was utilized as a short-term rental within the applicable time period. Short-term rentals must also successfully pass an inspection as described in §118.01(E)(9)(e) of the Unified Development Code to the City's satisfaction. (b) Type 1 and 2 short-term rentals seeking a business license or permit under the 6-month start-up period which are currently operating in 2, 3 and 4 unit buildings in which more than 1 unit is being used as a short-term rental may obtain a business license for all currently ooeratine short-term rentals. (c) All Type 2 short-term rentals submitting an application for a business license or permit after the six month grace period has expired shall be required to obtain an individualized conditional use permit from the Planning Commission and pass the City's premises inspection prior to the City being able to issue a business license. (8) Exceptions. Exceptions to the short-term rental standards, except proposals that would exceed the city-wide density maximum, may be granted by the Planning Commission as a conditional use permit. (9) Short-term rentals must comply with all applicable codes under City Code Section 118.01 and successfully obtain a business license prior to operation. Real Estate Investors NWA — Arkansas Short Term Rental Alliance Position Paper: Fayetteville Short Term Rental Ordinance December 17, 2020 In an effort to provide input for further consideration and revision regarding the proposed Short Term Rental Ordinance suggested at the December 1st City Council meeting, Real Estate Investors NWA and Arkansas Short Term Rental Alliance has drafted a Position Paper to present our views. Below are the Issues we find challenging and recommendations for further discussion. 1. Conditional Use Permit and Inspections We find the Conditional Use Permit too onerous for Type 2 STR owners and suspect it will also be burdensome to city officials charged with enacting the process. Most Type 2 owners are small investors unfamiliar with this process and we believe a blanket regulation such as this would lead to confusion, filing errors and ultimately noncompliance. SUGGESTED REVISION: We recommend this regulation be eliminated or alternatively with implementation only after the 2% Density Cap has been reached. A general Fire Inspection for each unit seems reasonable and would address any safety concerns while identifying possible code violations. The inspection process is already in place and would be the least burdensome on city officials. 2. 8-Person Cap on STR We find this regulation to be particularly burdensome. STR are neither residential owners nor hotels. We fall somewhere in between and are actually a separate business category. We understand the intent of both the Planning Commission and City Council is to make STRs legal without diminishing the beneficial aspects for entertainment, short term training/educational programs, prospective new residents and many other legitimate uses of temporary housing. Placing an 8-person cap on STR eliminates a large portion of our market, particularly the higher end housing so desired by event visitors, professionals exploring our "funky" city prior to a move and other social purposes. The harm this cap imposes includes unnecessarily restricting Highest and Best use for our properties, eliminating potential users of STR housing and lower revenue for both owners and the city SUGGESTED REVISION: We recommend the regulation remain 2 people per bedroom plus 2 and that the 8-person cap be eliminated. 3. Cap of 1 STR Unit Per Multi -Family Property We find this item to be an unwarranted over -regulation with no foundation, cause or need. It hampers our ability to efficiently maintain our units and is a gross interference in the ability to run our businesses as we see fit. Ultimately, we feel this will be deemed unconstitutional and again limit our capacity to operate our property in the Highest and Best use possible. SUGGESTED REVISION: We recommend this restriction be eliminated entirely. 4. Permanent Structure Requirement Part of the value and desirability of STRs is for renters to experience new, different and creative accommodations. Currently, there are many examples in Fayetteville including recreational vehicles, houseboats and even a Tree House. We believe these alternative housing options to be of great benefit and a major attraction to visitors of our unique city. SUGGESTED REVISION: We feel this requirement would benefit from further study and propose a 1-year review of STR uses and accommodations. At the end of the year, if there is deemed to be a problem, further action can be taken at that time. S. Owner or Agent Accessibility We feel the 24-7 availability and particularly the requirement of an agent to be physically present at the STR within one hour is unreasonable and probably unworkable. SUGGESTED REVISION: The availability requirement should be no different than that of any landlord or personal residential owner. 6. Special Events Prohibition We find this restriction unnecessary and confusing. Special events or temporary housing related to special events are the main purpose for STRs. Weddings at luxury accommodations, anniversaries, family reunions and other private parties are the reason renters seek STRs. Weekend corporate training events serve a beneficial and legitimate purpose for STRs. All these events and others not listed bring visitors, revenue and goodwill to Fayetteville. SUGGESTED REVISION: We find no reason or need for this restriction and recommend it be removed. If there is some foundational cause the planners were trying to accomplish, it should be more clearly defined and open to further discussion. It is our desire that this Position Paper be used to facilitate more dialogue resulting in an Ordinance beneficial to all parties. We hope the experience will foster additional collaboration among our members as stakeholders in providing a vibrant, fun and beneficial short term rental market within our beloved City of Fayetteville. Respectfully submitted, Real Estate Investors NWA Arkansas Short Term Rental Alliance