The Planning Commission held a special meeting last week to discuss tourist lodging in residential areas. Lacking a quorum, the commissioners could only discuss a proposed ordinance and set another special meeting.
The commission has heard increasing complaints about intrusions into previously quiet neighborhoods. Chair Ann Tandy-Sallee read a draft ordinance to prohibit tourist lodging in residential zones. The ordinance also would clarify the description of tourist lodging.
Tourist lodging in R-1 has been prohibited since 2001. The ordinance states that “tourist lodging is an incompatible and inconsistent use” in R-2 and R-3 zones. The ordinance says this action would protect “the health, welfare, and safety of citizens and guests of Eureka Springs.” The ordinance would preserve the historic neighborhoods that tourists come to see and would also further the city’s master plan.
In response to a question from the floor about fines, commissioners said the new ordinance would increase fines from $150 per day to $250. Commissioner Melissa Greene said she would like to see those fines imposed for violators.
If city council passes the ordinance, those holding valid Conditional Use Permits will have to go to city hall and sign their applications again. Some tourist lodging establishments operated before the city issued CUPs, and those businesses can continue to operate under the grandfather clause. They will have to register at city hall, however.
Greene balked at the language regarding grandfathered establishments. She said that owners of those properties have an asset that would survive the sale of the property, and that the city could encounter legal trouble interfering in that situation. “We can already review it if neighbors complain,” she said.
The draft included a carefully drawn definition of tourist lodging as “a dwelling in which sleep accommodations are furnished to transient guests on a short-term rental basis.” The ordinance also included a list of all CUPs currently extended in R-2.
The ordinance set a standard of 29 days or fewer for tourist lodging. By comparison, a long-term arrangement “affords a tenant exclusive right to a property for an agreed length of time.”
In addition to prohibiting further tourist lodging in residential areas, the ordinance would also restrict grandfathered properties from expanding.
An audience member said an Airbnb in his neighborhood had begun advertising as a 30-day rental to avoid regulations, although people often stay for less than 30 days. Tandy-Sallee said the property would still need a business license to collect the taxes required by the state, and a CUP would be required for that business license.
In response to a question about a property on Oakridge Drive, City Historic Preservation Officer Kylee Hevrdejs said the building inspector has visited the property to advise the owner of violations. She said Mayor Butch Berry is also following the situation.
Another special meeting was planned for 4:30 p.m. on Wednesday, Sept. 1, to allow for a formal vote to send the draft ordinance to council.