Have thoughts about short term rental caps in Saugatuck? Come to this public hearing

SAUGATUCK — Saugatuck will hold a public hearing on a proposed 20% cap for short-term rentals in the coming weeks.

The hearing will take place at 7 p.m. Thursday, Aug. 15, before the Saugatuck Planning Commission — and plenty of speakers are expected to show.

Saugatuck has tackled regulations, fines and fees for short-term rentals in earnest over the past year, including the formation of a task force that spent six months developing recommendations.

In February, the city approved an updated zoning and police powers ordinance with increased fees for annual licenses, clear occupancy and visitor limits, and a guide addressing noise, trash disposal and parking. But the planning commission, and council, had yet to decide on caps — a maximum number of STRs per neighborhood or zoning district.

Earlier this month, council agreed to limit six districts labeled R-1 to 20% STRs , based on the number of dwelling units currently in that district. The change would include a provision grandfathering all existing STR licenses until the property changes ownership or the license is revoked or lapses.

What's left available will be issued by a lottery system.

More: Saugatuck votes in favor of 20% cap on STRs in residential districts

But the decision isn't a done deal. Saugatuck City Manager Ryan Cummins told The Sentinel his staff will prepare ordinance and resolution language consistent with council’s direction. It will involve both a zoning text amendment and a police powers ordinance.

“The zoning text amendment will go to the planning commission, which will require a public hearing. The police powers ordinance and resolution ... will go to city council for review and a decision on the actual language."

That's why the planning commission scheduled a public hearing during its meeting last Thursday.

Kyle Konwinski, representing the nonprofit Saugatuck Neighbors, spoke Thursday about possible conflicts of interest on council.

“Because of the fact that it treats districts differently, in my opinion, in review of the city charter, it sets up councilmembers who are going to vote for this to have an automatic conflict of interest,” Konwinski said.

Konwinski said a cap on STRs in the R-1 district would increase housing values in other districts, particularly in the R-2 district. He said there are members on council who live in that district.

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“They will have higher property values,” he said. “Undoubtedly, they are going to be able to sell their property for a higher value than someone in R-1.”

Cummins and Mayor Lauren Stanton responded to the concern in the days following the meeting.

Stanton said potential conflicts of interest are taken seriously and were discussed and disclosed. One councilmember recused himself, and the city's legal counsel felt no other members had disqualifying relationships to the proposed change.

"Understanding the sensitivity of this topic and the importance of STRs to our community, the city has pursued a regulatory solution that is as narrowly tailored as possible," Stanton wrote in an email. "Consistent with the planning commission’s recommendation to council, only the city’s R-1 districts were selected for the proposed cap because they are the most susceptible to the negative impact associated with unchecked STR growth.

"The R-2 district was not considered as susceptible, as it includes a number of existing commercial rental uses, such as hotels, motels and motor courts. The city’s R-3, R-4 and commercial districts were also not included in the cap for similar reasons."

— Contact reporter Austin Metz at ametz@hollandsentinel.com.

This article originally appeared on The Holland Sentinel: Have thoughts about short term rental caps in Saugatuck? Come to this public hearing