DATE: March 3, 2015
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Catherine Powers, Director of Planning and Sustainability
Chris Bridgewater, Director of Building and Neighborhood Services
Andy King, Deputy Fire Chief/Fire Marshal
Molly Pike, Zoning Administrator
Subject
Consideration of Ordinance 2014-28 Amending Table 3-2 of the Zoning Ordinance: Permitted Uses and Chapter 8 Definitions, to Allow Short-Term Vacation Rentals in Various Zoning Districts (10/23/14 FMPC 7-0: 4-14-15 BOMA 1st Reading 8-0; 5-26-15 BOMA 2ND Reading 7-0); THIRD AND FINAL READING
Purpose
The purpose of this memorandum is to provide information to the Franklin Municipal Planning Commission (FMPC) concerning a Zoning Ordinance amendment that would amend the use table to allow Short Term Vacation Rentals, also known as VRBO's, in certain residential base zoning districts.
Background/Staff Comments
Some Franklin property owners are using websites such as Airbnb and VRBO to rent their single family and accessary dwellings for short periods of time. Our Zoning Ordinance limits this type of transient occupancy to either bed and breakfasts or hotels. Williamson County and is pursuing the collection of hotel/motel taxes from these property owners who are renting their homes on a short-term basis and is asking that the owners comply with all local ordinances. Currently in the State Legislature a bill is pending that clarifies the business license requirement. Franklin issues business licenses for the purpose of complying with State law and collecting revenue, but staff cannot provide approval (Certificate of Use and Occupancy) for property owners to use their single family dwelling for transient rentals since the City's Zoning Ordinance does not allow this type of use. City staff is aware that Short Term Vacation Rentals (STVR) are operating, and recently approached the BOMA for input on possible approaches prior to pursuing any type of enforcement. The BOMA indicated that they favored allowing the use in the same Zoning Districts as Bed and Breakfasts.
Many tourist-oriented communities, such as Franklin, permit this type of activity. Currently, Building and Neighborhood Services is not receiving complaints about STVR's unless the dwelling is also used as an event venue for weddings and parties.
Operating a Short Term Vacation Rental requires a business license and registering to pay Hotel/Motel taxes. The State Fire Marshal's Office has communicated to the City of Franklin Fire Marshal and other official in communities across that state that fire sprinklers are also required in Short Term Vacation Rentals in accordance with the 2012 International Building Code for Short Term Vacation Rentals established after October 2010. Upon approval of the proposed ordinance amendment, staff will begin contacting the owners/operators of STVRs and issue a Plan of Corrective Action that includes a timeline to bring buildings into compliance. The businesses will be allowed to continue to operate as long as progress is being made by the owner/operator to bring their building into compliance within the agreed upon timeframe and a new Certificate of Use and Occupancy is issued.
Recommendation
Approval of the modification the City's Zoning Ordinance to include Short Term Vacation Rentals is recommended.