The planning commission for the City of Saugatuck passed an amendment to its zoning ordinance on Thursday that would allow the city to enforce its new cap on short-term rentals.
In a 4-2 vote, commissioners sent the amendment to the city council. The amendment would permit the city to set limits on the number of short-term rentals (STRs) allowed in its R1 Residential neighborhoods, establish how current STRs are affected by the cap and how available STR licenses are issued and also provide a mechanism to allow for changes to the cap.
"I think we have to look for the greater good," said Holly Anderson, a commissioner who voted in favor of the zoning amendment. "The greater good is to preserve a neighborhood feel in our neighborhoods."
Residents filled the seats of the second floor meeting room on Thursday, often coming to the microphone during public comment with sharp criticism.
"Let free enterprise happen," said Ethan Barde, a real estate agent who called the cap a "mistake": "Let’s address the issues and not punish the town."
"“You’re going to get empty houses. You’re going to get devalued houses," said Tammy Kerr, also in the real estate business. "That's a shame. It saddens me."
In July, the Saugatuck City Council passed the cap, restricting short-term rentals to 20% of the housing supply in each of its six, R1 Residential districts.
Notably, current STRs were grandfathered in.
READ MORE: Saugatuck passes short-term rental cap, current STRs grandfathered in
"We welcome visitors. We want them to come," City Manager Ryan Cummins said in a previous interview with FOX 17. "But it’s about finding the right finding the right balance, and similar to other communities across the state and the country and even the world, we're wrestling with that exact thing as well."
Representing Saugatuck Neighbors, a newly-formed nonprofit, Seth Arthur, an attorney at Varnum Law, spoke of conflicts of interest on the city council.
The attorney alleged that council members owned short-term rentals in the city's R2 Residential District (not affected by the cap) and planned to sell their properties for a higher price created by the cap.
In a statement to FOX 17, City Manager Ryan Cummins said, "Given the importance of this topic, the City vetted potential conflicts of interest in advance. One conflict of interest was identified, and that Council member abstained from voting and deliberation."
"While the rest of the Council may have indirect connections to the proposed regulations (they all live in districts that will be subject to or exempt from STR caps), none of those connections arise to a conflict."
"In a community as small and as vibrant as Saugatuck, it is often typical that new regulations will have tangential effects on members of the Council because they too live and reside in the community."
"However, remote and indirect impacts do not create a conflict of interest. If that was the case, the entire Council would frequently be disqualified from voting on matters of general applicability to its constituents."
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