ALEXANDRIA PLANNING COMMISSION MINUTES Monday, August 15, 2011

A regular Planning Commission meeting was called to order at 7:00 p.m. by Vice Chairperson Elroy Frank.

The following members were present: Jewett, Parrott, Frank, Senesac The following members were absent: Ryan, Zimny, Nielson The following advisory members were present: Tank

Under the procedures established by the Commission on October 1, 1973, the minutes of the July 18, 2011 meeting were approved.

1. Public Hearing – City of Alexandria – Zoning Text Amendment

The City of Alexandria is requesting a Zoning Text Amendment to regulate the licensing, location, and operation of short-term (up to thirty (30) days) residential rentals. The property affected is City- wide.

Karin Tank, Assistant City Planner, reviewed the application with the Commission.

In the past year the City has received a number of inquiries and complaints about the licensing, location and operation of short-term (less than thirty day) residential rentals, primarily of the vacation rental type. During the recently completed legislative session a bill was introduced which would have required cities to allow all such short-term rentals as permitted uses in the relevant zoning districts. That bill was not passed out of committee, but it did generate interest statewide, since it appeared that at least some of the intent of the legislation was to restrict or prohibit local control over some land uses.

Information from Sandy Tubbs, Douglas County Public Health (the local agency charged with licensing some, but not all of these short-term rentals) was furnished. (See attachment). In addition, hearing notices were mailed to the owners of all licensed short-term vacation rentals located within the City limits, as well as the owners of property within 350’ of those locations.

The intent with the public hearing is to solicit input on this matter from owner/operators of these short-term rentals, as well as from property owners/neighbors in the areas surrounding those rentals. No action is sought at this time. Following the hearing the Commission may direct staff to prepare a draft ordinance to address any outstanding issues. The draft language could be ready as early as the September Commission meeting.

Vice Chairperson Frank opened the hearing for public comment.

Phyllis & Lamont Mounsdon, 715 Van Dyke Road NW, feels the location of Michael McCabe’s vacation rental property does not belong in a residential area. They have nothing against their neighbor and feel it would be better to have this business located outside of city limits. This vacation rental property has definitely affected the value of our property. They would like to sell their home soon but feel the value has been lowered with all the activity next door. They never received notification that this property was going to be turned into a rental home. It would have been nice to be able to voice our opinion before it happened but nothing was ever mentioned. The activity over the past three years has grown substantially. Mickey also has an 8-page advertisement for this rental property on the internet.

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We have paid lakeshore taxes for over 64 years and enjoyed living in a quiet, peaceful neighborhood; until three years ago. There is way too much activity on the lake in front of our property. We realize we don’t own the lake, but it is directly in front of our property. Lamont used to enjoy going out on the lake to do some pan fishing, but not anymore. There are jet skis, speed boats, water skiers, canoes, racing boats, and more. One night they looked outside the window and saw sparks flying into the air at 1:00 am. She mentioned it to Mickey but nothing ever happened. It’s scary when the renters don’t take care of their fires. There is a row of pine trees and either property could have burnt down during the dry season. At many times they hesitate to leave their home because of all the activity. One night some of the renters were in Lamont’s garden. Granted most people are very good, but there is always a bad apple in a group. It’s just too close for comfort.

Phyllis called Council Member Virgil Batesole. He wasn’t home and his wife said she would have him call back immediately. That was four weeks ago. We definitely won’t be voting for him again. He is supposed to represent our ward.

Mickey is a hard worker. The property is well maintained and he and his wife have made a lot of improvements. It’s just not the right location for this type of business. They also believe the owner of the property should be on the premises at all times; much like a property manager. Mickey said he would be renting to family and friends. But when the ad appeared on the internet listing a vacation home for rent, it changed our opinion. It was no longer just to family and friends; it was now open to anyone. It is not what we expected. Mickey even advertises spaces for RV rentals. Our quality of life has definitely changed; and not for the better.

Thomas Golden, 738 Van Dyke Road NW, is also concerned about the comings and goings with the rental property across the road from him. One of the reasons they bought their house is because of the beautiful property across the road. But there is lots of traffic and that makes me nervous. We too are uneasy when leaving our home, but we have a cabin up north that we like to enjoy. It is definitely a high-end property and the renters are probably not going to steal from me, but you never know who the renters bring with them and that makes me nervous. There are also lots of kids playing along the drainage ditches. They could get hurt or get wild with the rocks and break windows. Also, we make sure we clean up after our dog, but it is obvious that we are cleaning up after more than just ours lately. It is a nice piece of property and they do an excellent job of keeping it up, but he wishes the owners lived there instead.

Michael McCabe, 803 Van Dyke Road NW, believes it is primarily his property that is under discussion at tonight’s meeting. He’s not sure if there are any other properties involved. He has great neighbors and is respectful of them. He clarified that he does not allow RV’s on the property. This is the third year he has rented out the property. It started out for financial reasons; mainly medical expenses for his wife. Since they were unable to come up as much as they wanted to, he sent out an email to some of his friends opening up the property for them to rent. He had a few takers and it worked out good and they took good care of the house. Then college expenses came up for his son and more medical expenses and once again extra cash was needed so they decided to place the ad on the internet to drum up more business.

They have registered the property with the City of Alexandria and after inspections, are in complete compliance. Every precaution is taken to find the right people to rent to who will respect not only our property, but the neighbors as well. He is surprised to hear these comments from Lamont and Phyllis.

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He had heard second had the story about the garden, but thought it was an isolated incident. He agrees the renters shouldn’t have been there and because of that, it is now part of the written regulations.

In addition, we take every precaution to make sure we rent only to people that we feel will respect our property and not cause any incidents with our neighbors. I have spoken with my neighbor Lamont on several occasions and he has told me that noise has never been an issue for him. One of my cabin rules states that the renter’s damage deposit will be forfeited if the police are ever called due to a noise disturbance. In addition, it states that cars may not be parked in the street, to stay out of Lamont’s garden, and to be respectful of the neighbors.

What we mainly look for in potential renters if families with children. 90% of our renters consist of families with 3 generations in attendance and are usually booked a year in advance. As we complete our third year, many of our renters have already stayed with us more than once and most of our bookings for 2012 are repeats as well.

If you look on my VRBO website at www.vrbo/299755 you will see that all of my renters have written very positive reviews about their stay in Alexandria and at my home. If you read them, you will see that they are very grateful for having the opportunity to stay at a clean, well kept home that is walking distance to downtown and all of the amenities that Alexandria has to offer. A lot of them are visiting Alexandria for the first time, and leave with a very positive impression of the city. In addition, when they leave they are usually leaving behind many thousands of dollars at local restaurants, the municipal liquor store and other merchants.

While we take precaution and implement rental rules to alleviate any issues between renters and neighbors, I understand why short term rentals could become a problem for the surrounding neighbors. I would welcome some reasonable regulations that may even require a greater fee than the current $20 rental license. In other cities, landlords are notified when the police are called to any of their properties, with the possibility of fines if the landlord continues to rent to problem tenants. I think it would be reasonable to have a provision such as this as part of some regulations on short term rentals.

To prevent property owners from renting out their homes, if they so choose, would be a great infringement on the rights of all property owners. Every summer, Saturday evening, as I listen to the races begin at the fairgrounds, I am reminded about the rights of property owners. Sometimes the races will last until after 10:30, even though they are supposed to end at 10, and I still do not complain, because I realize that the races have a history in Alexandria. They also have a positive economic impact that I am sure is being measured against any possible negative impact that the noise of those raises is causing to thousands of neighbors within hearing distance.

In closing, I would urge the city council not to amend the zoning laws of the city with respect to short term rentals, and instead, address the situation in the rental licensing guidelines with some nuisance tenant rules that would protect surrounding neighbors while still allowing the property owners to exercise their property rights. I have included a copy of a letter that landlords in Minneapolis receive when their properties are subject to complaints. Thank you for considering my opinion in this matter.

Katie & Phil Halstron, 811 Van Dyke Road NW, live two houses away. In regards to Phyllis and Lamont’s comment about the additional traffic on the lake, we are probably partly to blame for that. We live on the lake; and therefore, we have parties every weekend with friends and family. That’s

3 ALEXANDRIA PLANNING COMMISSION MINUTES Monday, August 15, 2011 one of the reasons people live on the lake and that’s why they buy lake homes. We have camp fires and go fishing and skiing and like to have fun. That’s just part of the lake experience. Those are the experiences our family and friends remember. Yes, there have been times the renters have gotten loud and out of control, but we have addressed these times with Mickey and he has taken care of it. But that was a year or so ago. Since then they haven’t had any problems with the renters, and our properties are quite close to each other. They are glad that Mickey addresses the problems quickly and promptly.

We are not here to advocate one way or the other; this is just what we have experienced. We are all neighbors on the Van Dyke block and plan to be here for several years and want to see everyone be happy. The cliental that Mickey rents to are very high-end and respectful. There’s nothing better than hearing kids having a good time with their families; it’s called making memories. There are times we have over 60 people during the day. That’s the beauty of living on the lake. We need to just remember to take care of our resources without infringing on the rights of others. Maybe the City needs to establish quiet times or set perimeters for all to abide to.

Vice Chairperson Frank interjected that the zoning text amendment is not just about Mickey’s property tonight. There are other properties out there as well. This is a fact-finding, information gathering time to help the City decide on whether more regulations need to be in place or if things should just be left alone. He recommended changing the discussion so it wasn’t directed at the McCabe property. As far as a noise ordinance, the City already has one which runs until 11:00 pm at night.

Bruce Pohlig, 5388 E Lake Carlos Drive NE, has several single-family rental units throughout the City of Alexandria. He also has a short-term rental located at 401 S Le Homme Dieu Drive NE with 360 feet of lakeshore with a small cabin. The area of this cabin was formally township property that was annexed into the city. Through the various annexations that have occurred, several of these rental properties have come into the City. At this time he asks the Commission to carefully consider doing nothing.

In reference to the people who have spoken here this evening, these neighbors need to work things out. He has rented this cabin to out-of-towners for over 20 years. They like coming here. We don’t need more regulations placed. The former township areas that were annexed into the City have a different set of regulations then historical to the City. He is a 35-year resident of Carlos Township and a strong proponent in the community for City annexation. This is a great opportunity to have input from the community, deliberate, and then do nothing.

Frank Jackson, 2117 Rosewood Lane SE, has lived in the community for over 40 years. He also happens to live next door to one of these vacation rentals. He thanked the Commission for allowing him to speak tonight. He has seen the people who rent next door to him. They start coming in June and continue on through August. These are families with children. Nearly all of them have spoken to him. They are polite and rarely cause trouble. Several families rent together and share the expenses. They can’t afford this, but are determined to take a family vacation. They spend hours on the lake tubing, boating, fishing, and having fun. The other day he watched a grandfather how his grandchild how to fish for the first time. They are making memories. They come from all walks of life. They spend money within the community at the grocery stores, liquor stores, gas stations, museums, etc. They are enjoying what we have to share. The landlord also gave me his cell phone number if there are any problems. They also screen their renters in advance. They have a well-maintained yard. He

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agrees that no changes should be made at this time. These additional costs will be passed on to the landlord and then to the renters. The owners are not getting rich. The government does not need to control and regulate everything.

Vice Chairperson Frank recessed the meeting until September 19, 2011, leaving the public hearing open.

Vice Chairperson Frank confirmed violations are happening. But also restated this is not about individual properties. Again, this is a fact-finding, information gathering meeting.

Ms. Tank clarified that rentals of less than one week are regulated by the County (Food & Lodging License) and not the City. It is her understanding that property owners received notifications from Douglas County Public Health. No properties are being singled out. No action is being taken at this time and the public hearing will remain open for further comments. The public will be notified of further action as it occurs.

Vice Chairperson Frank asked for a motion to adjourn and direct City staff to report the Planning Commission recommendations to the City Council A motion was made by Jewett and seconded by Senesac to adjourn the August 15, 2011 meeting and to direct City staff to report the Planning Commission recommendations to the City Council. The motion carried by the following vote: YES: Jewett, Parrott, Frank, Senesac NO: None ABSENT: Ryan, Zimny, Nielson The meeting was adjourned at 7:45 p.m.

______Brenda Johnson, Secretary Elroy Frank, Vice Chairperson

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