City seeks comments on short-term rentals

Public input that will inform regulations the city develops for short-term residential rental businesses will be solicited Tuesday at Horner Hall in the Hot Springs Convention Center.

The 6 p.m. listening session will be held 68 days prior to the start of the more than four-month moratorium on the issuance of business licenses for short-term rentals. The Hot Springs Board of Directors established the pause to give the city time to develop a regulatory scheme for an industry not specifically addressed in the city’s zoning and taxation codes.

The city said there will be no question-and-answer segment at Tuesday’s session.

“It’s strictly for us to hear those who have a vested interest or concerns about short-term rentals and distill those down and get those back to the board,” City Manager Bill Burrough said at the board’s March 16 business meeting. “We’d love to hear what your concerns are as we move forward with this very important regulation process.”

Speakers will be given three minutes each to make comments. Written comments emailed to STRcomments@cityhs.net will be accepted through Wednesday.

“The lack of regulations associated with short-term residential rentals results in the potential for health, safety and welfare concerns for those occupying same, along with the potential for parking and traffic congestion, disproportionate solid waste accumulation for once-a-week residential services and perceived nuisance to adjacent full-time residents,” said the recitals section of the ordinance the board adopted March 2.

In addition to initiating a pause on business licenses, the ordinance defined short-term residential rentals as accommodations offered for periods of less than 30 days and established an annual tax of

$50 per bed. It was adopted on a

6-1 vote, with District 4 Director Carroll Weatherford opposing it.

Existing short-term rentals have until May 30 to apply for a business license, the price of which will increase by 5% next year and 2% in 2023. The annual fee a business pays is based on the economic sector assigned to it by the North American Industry Classification System.

Several real estate professionals who spoke against the pause on business licenses at the March 2 meeting said short-term rentals are the only way many older downtown homes and buildings can generate a return on investment. Millions of dollars of real estate transactions currently under contract involve short-term rentals, they said, and can’t be closed before the May 30 start of the moratorium.

Short-term rentals are a proposed use for two dozen cabins and homes developers are planning to build off Buena Vista Road. The Hot Springs Planning Commission unanimously recommended the city board grant the 20 acres between Aberina Street and Five Points Road a specialty zoning designation allowing short-term rentals on the property.

An ordinance ratifying the planning commission’s recommendation was on the board’s March 2 agenda, but the board didn’t suspend the rule requiring ordinances be read at three different meetings. The rule wasn’t suspended at the March 16 meeting either, requiring the ordinance to be read for a third and final time at the April 6 meeting.

Several people who live near the property came to the March 16 meeting to speak against the ordinance. Because no action was taken, they weren’t allowed to address the board.

“In April, we’ll bring this item back up,” Mayor Pat McCabe told the residents. “You’ll have an opportunity to speak. I’m always sorry when people come out and are not able to address the board.”

City Attorney Brian Albright told the board action will be taken on the ordinance at the next business meeting.