Garfield planners talk STRs

Jul. 25—TRAVERSE CITY — Proposed changes to Michigan law could stop local governments from banning short-term renting, and Garfield Township planning commissioners want to be ready.

Commissioners agreed Wednesday with Deputy Planning Director Stephen Hannon's suggestions that short-term renting be allowed in three commercial districts within the township. They also backed a draft licensing ordinance that would impose standards, while requesting a few clarifications or changes.

Hannon told the planning board about a bill in the House of Representatives that, while allowing local governments to regulate short-term rentals, would prevent them from completely banning them. While the bill's passage didn't seem imminent, it's not the first proposal of its kind.

Along with drafting a definition of short-term renting that would match the state's, Hannon suggested planners consider where to allow STRs. General commercial, highway commercial and planned shopping center zones already allow for housing and hotels.

"I think one of the main concerns has been the potential impacts of having short-term rentals in residential, and that's what most people are worried about and I think there are a lot of valid concerns," he said.

Commissioner Molly Agostinelli said she thought the current proposed law is better than past ones that would have declared short-term renting a use by right. Township residents widely opposed allowing them in Garfield's residential areas when past bills were discussed, but allowing them in those commercial districts could spur development at Cherryland Center and others like it.

"Those are areas that it would fit," she said. "We might see some new construction there, and we might see some really innovative uses there, and I think that that idea is a good start."

Commissioner Chris DeGood said he liked a provision that would allow the township to revoke the license of a rental with a "pattern of patron conduct" that causes disturbances in the neighborhood. While that would subject neighbors to those problems until a pattern is established, it would also protect rental owners from losing their license over a bad incident or two.

DeGood asked Hannon for more information on the zones where STRs might be allowed under the draft proposal, including property that could be developed for the practice and existing homes that could be converted.

Along with questions about the draft ordinance's definition of "licensee" and what a local agent would be tasked with, DeGood also asked about what degree of inspections STRs would have to undergo. He noted there are several decades-old vacation rentals in the region that wouldn't meet current building or fire codes.

"This is a complicated, hairy issue, and we've been able to avoid it for a long time by kind of digging gin our heels and saying, 'No,' and we just got to look at all the different aspects, and you guys got a great start," he said, referring to Hannon and Township Planner John Sych.

Agostinelli agreed the rental properties would have to undergo some type of inspection for electrical systems and others.

Commissioner Robert Fudge said the licensing requirement could create a "paper nightmare," and would likely require more employees to keep track of STRs in the township. Agostinelli noted that small townships have needed to hire more people to regulate STRs.

Hannon said the proposed legislation would allow municipalities to limit the number of STRs, and Commissioner Joe Robertson wondered if the township should adopt one. Planners recently approved a housing development that could, in theory, be turned completely into vacation rentals.

Hannon agreed that the Garfield ordinance could limit STRs to something like 25 percent of any building or development, for example.

Lawmakers for years have suggested curbing or eliminating local control over short-term renting, citing a patchwork of regulations creating an uneven playing field. It's a practice that stirs controversy throughout the globe, with rental owners and vacationers praising it and some neighbors clamoring for limits or bans.

The latest proposal, HB 5438, is pending in the House's Local Government and Municipal Finance Committee since February, records show. It's tie-barred to nine others that would subject STRs to several tourism assessments.

Hannon said Wednesday's discussion aimed to prepare township officials should the bill pass, and Commissioner Joe McManus agreed discussing the topic early was better than a "knee-jerk reaction later."