‘Flawed’ Airbnb consultations blasted at public hearing

Saskatoon city administrators “seriously misrepresented” the potential cost of running an online short-term housing rental under a proposed set of regulations, according to a landlord who spoke at a marathon public hearing Monday night.

Lloyd Beazley said city hall’s consultation efforts amounted to a presentation of three predetermined options, and suggested the cost of a discretionary use application — which many operators using platforms like Airbnb and VRBO would require under the new rules — was $1,050.

During its budget deliberations days later, Beazley said, city council voted to raise the cost of the application, a case-by-case process required for some property uses in different zoning districts, to $2,500. No other major cities use discretionary use for short-term rentals, he said.

“Simply put, the public engagement needs a redo,” said Beazley, who also outlined a host of other concerns with the city’s preferred set of regulations — a proposal that the municipal planning commission (MPC), in an unusual move, recommended be reworked by administrators.

Other speakers also expressed frustration with the city’s engagement efforts. Keith Pearson said he was asked for his thoughts on several proposed options, but had no way to express displeasure with all of them. He called the process “flawed.”

Former MPC chair and Airbnb host Jeff Jackson said city hall’s consultation efforts were “misleading ” and should be disqualified because the cost of discretionary use applications for rentals in some residential zoning districts was subsequently changed.

“Discretionary use permits are arduous, with a mandatory public hearing. It pits neighbours against one another, and in 2020 the fee is $2,500 and overly expensive,” Jackson told the public hearing, adding the increased cost was only sent out after the consultations.

“If it’s a high cost for short-term rentals, they won’t be able to afford it,” Airbnb host Michelle Pexa added.

There are more than 600 Airbnb rentals in Saskatoon, and likely more on other platforms. It is not clear how many of those would require the discretionary use application if the new rules are enacted.

Mark Wilson, the city’s licensing and permitting manager, told the meeting a set of rules without the discretionary use requirement was not put forward because it would be “inconsistent” with zoning rules for commercial operations in residential areas.

City council was reduced to seven members for Monday’s debate. Coun. Troy Davies was absent, while Coun. Darren Hill, Coun. Cynthia Block and Coun. Zach Jeffries recused themselves after declaring conflicts of interest — all three operate short-term online property rentals.

The public hearing, after which council is expected to make a decision, was still in progress at press time. The marathon meeting attracted around 60 observers — an unusually large number.

Under the recommended rules, most people offering short-term rentals would be required to pay $125 for a city business licence while those renting properties in low- and medium-density residential zoning districts would also have to obtain discretionary use approval.

The same regulations would apply to those renting out rooms in their primary residence or secondary suite, which the city refers to as “homestays,” except in cases where there are never more than two guests at a time. All shortterm rentals would be capped at six guests.

The city’s efforts to come up with a regulatory scheme for shortterm rentals dates back to 2015, when 10 local bed and breakfast owners complained that Airbnb operators did not face the same licensing requirements as their business.