HomeMy WebLinkAboutInfor Report - Short-term Rental Properties in Palm Desert CITY OF PALM DESERT
DEPARTMENT OF COMMUNITY DEVELOPMENT
STAFF REPORT
REQUEST: INFORMATIONAL REPORT REGARDING SHORT-TERM RENTAL
PROPERTIES IN PALM DESERT
SUBMITTED BY: Tony Bagato, Principal Planner
DATE: March 11, 2010
Recommendation
By Minute Motion, that the City Council receive and file the informational
report regarding short-term rentals.
Discussion:
On May 19, 2009, the Planning Commission, on a 4-1 vote, denied a CUP application
by a homeowner on Utah Circle to operate her second home as a-short-term rental in
an R-1 zone. The majority of the Commissioners expressed the opinion that short-term
rentals are not compatible with single-family neighborhoods. The applicant appealed
the decision, and on June 25, 2009, the City Council denied the appeal, with several
Council members also expressing the opinion that short-term rentals are incompatible
with single-family neighborhoods.
On January 19, 2010, staff requested direction from the Planning Commission on how
to deal with short-term rentals in an R-1 zone, because short-term rentals are allowed in
R-1 zones with a Conditional Use Permit (CUP), but members of both the Planning
Commission and City Council stated that short-term rentals are not compatible with
single-family neighborhoods. After the discussion, Commissioner Tanner asked staff to
study the Planned Residential (PR) gated communities and the R-1 gated communities
to determine . the number of gated R-1 properties that require CUPs; in addition,
Commissioner Schmidt asked for a possible ordinance.
Staff researched the different gated and non-gated R-1 communities and prepared a
Zoning Ordinance Amendment (ZOA 10-68) that would prohibit short-term rentals in
non-gated communities. On April 6, 2010, a public hearing was held and there were
many property owners with short-term rentals at the hearing who expressed opposition
to a prohibition. After the discussion, staff was directed to form a subcommittee
comprised of two City Council members, Planning Commission members and
P
Staff Report 41
Short-Term Rentals
December 9, 2010
Page 3 of 3
Environmental Review
This-staff-report-is currently-for-informational- u r oses-and therefore requires-no-further
environmental analysis at this time.
Fiscal Analysis
There is no financial impact from this informational staff report. A change in the
ordinance regulating short-term rentals will effect a change in the amount of transient
occupancy tax collected from the short-term rental of vacation properties and second
homes. For reference purposes, it is noted that during the fiscal year 2009/10, the City
received approximately $245,000 in transient occupancy tax from short-term rental
properties.
Submitted by: Department Head:
-a Tony Bagato Lauri Aylaian
U1r Principal Planner Director of Community Development
Approval:
CITY COUNCIL ACTION'
APPROVED ___ DENIED
•
J n M. Wohlmuth, City Manager R EIVI r' ' �` OTHER
MEETING DATE -�� .r, a
AYES:
NOES: .
ABSENT: •
ABSTAIN:
VERIFIED BY:
Original on File with City crri s Office
G:\PIanning\Tony Bagato\Word Files\Formats\Stall Reports\ZOA\10.68 Short-Term Rentals\Hearing\Informational CCSR(2).doc