SILOAM SPRINGS -- The Planning Commission approved a code change Feb. 14, placing a cap on the number of short-term rentals allowed in the city.
Commissioners voted unanimously to approve the code change, which will go before the city's Board of Directors on Tuesday. If approved by the board, the code change will cap the number of short-term rental permits and/or business licenses to 64 within the city, according to senior planner Ben Rhoads.
"We are capping both special use permits and business licenses, whichever gets to 64," Rhoads said.
The city presently has 27 short-term rentals, Rhoads said in a staff report he prepared Feb. 6. Once the 64 cap is met no other permits or licenses for short-term rentals will be issued unless one or more should cease operation, Rhoads said.
Currently the city has more special use permits than business licenses, Rhoads said. Staff has provided a process for previously approved short-term rentals by special use permits and/or business licenses to be canceled by the applicant and are no longer required, Rhoads said.
This will open spots for additional permits after unused ones are canceled, Rhoads said. With only 27 short-term rentals, the cap will not happen right away, Rhoads said.
Part of the requirements include having a valid business license or remittance of the hotel/motel tax limiting only to overnight accommodations and limiting occupancy to no more than three guests per bedroom, Rhoads said.
Audience members chose not to speak during the public comment portion. Several commissioners posed questions to Rhoads.
Commissioner Ted Song asked Rhoads to explain the difference between the permit and a business license.
Rhoads said special use permits are used for short-term rentals in residential areas in conjunction with a business license, while the business license is used for anyone operating a business.
A question about grandfathering was asked by Commissioner Katie Rennard. Rennard asked about a short-term rental on Jefferson Street that is rented out by the day or half-day, which would be grandfathered in, wondering how to monitor the location.
Rhoads told her that one way is to look at the sales tax receipts to see if it is in operation, but as to duration of rental agreements it would have to go on a case-by-case basis. He also said if the property is not used in one year's time, the permit is canceled.
Commissioner Kevin Williams asked if the number will change as more homes are built. Rhoads said since the number is based on the 2020 census, the number will stay the same until 2030.
After more discussion, the commissioners voted to approve the code change.
The Planning Commission also:
Approved a special use permit for 411 N. Broadway St. This item will go before the city board on Tuesday.
Approved a special use permit for 315 W. Harvard St. This item will go before the city board on Tuesday.
Approved a rezoning development for the 21000 block of South Arkansas 16. This item will go before the city board on Tuesday.
Approved a significant development permit for 1750 S. Lincoln St.
Tabled a preliminary plat development permit for 2270 Dawn Hill Road until the March 14 meeting of the Planning Commission.
Approved a final plat development permit for 650 W. U.S. 412.
Amending city code concerning mini storage units. This item will go before the city board on Tuesday.