||| FROM SAN JUAN ISLAND BUSINESSES (SEE BELOW) |||
Dear County Council,
We are strongly opposed to the recent moratorium that you have recently enacted on New Vacation Rental Applications for the following reasons:
- Less than 3 years ago San Juan County Council adopted updated Vacation Rental standards with Ordinance 02-2018. (18.40.275 of the Unified Development Code). Within this ordinance are “rules of conduct” that address environmental impacts, safety, noise, trespass, a required 24/7 local representative for each VR and public health.
- There are “teeth” in the ordinance if there is non-compliance (paragraph J): “Vacation rental permits vested or approved after the effective date of the ordinance codified in this section shall expire two years after the date of approval unless the annual certificates of compliance meeting the requirements of subsection (K)(4) of this section are on file with the administrator. Clearly the county council, planning staff and the planning commission put a lot of thought into creating an enforceable set of standards to manage potential impacts from the VR businesses.
- Ord. 02-2018 requires that a VR application goes through the Conditional Use Permit (CUP) process. Under the former rules, VRs could be permitted under a much easier “Provisional Use Permit”. The CUP process can be lengthy and expensive. There is ample opportunity for public comment and an appeal process. In fact, it is not a given that a VR applicant will be successful in getting through the existing process. We feel there has been no justification for the County Council to have adopted the Vacation Rental Moratorium.
We, as San Juan Island business owners, have all struggled together through the historic COVID 19 pandemic. We have been told “we are all in this together.” We strongly feel that you as our County Council, by enacting the Moratorium on Vacation Rental applications, has acted in a damaging and unnecessary manner in the midst of an already difficult time for most island businesses.
We respectfully ask you to REPEAL the Vacation Rental Moratorium immediately. We need our elected officials to support local businesses and jobs!
Crystal Seas Kayaking, San Juan Property Management, Wes Edholm Photography, Spring Street Deli, Island Boat Rental, San Juan Excursions, Homes For Islanders, Tucker House / Harrison Suites, Haley’s Sports Bar and Grill, Appliance Repair by Bruce, Tom Brown Construction, Starr Excavating and Septic, DNR Consulting LLC, Snug Harbor Marina and Resort, Sears Hometown Store Friday Harbor, A1 Mobile Lock and Key, Island Heating and Mechanical, San Juan Safaris Mike’s Café and Wine Bar, Island Heating and Mechanical, Inter Island Propane, Island Roots, San Juan Island Outfitters, Northwest Plumbing and Waterworks, King Realty, Inc. Deer Hazel, Island Pets, Island Life Concierge, Isles Tiles, D.A. West Inc., Be Chic Boutique, Lorne Paulson Construction, The Bait Shop, Wild West Dec LLC, KAVU, Transformation Church, 40 Spring Street LLC, Harvey’s Excavating, 1027 LLC, West Valley Holdings LLC, On Point Barber Shop, Mike Carlson Enterprises, Inc., China Pearl, Downriggers Restaurant, San Juan Island Hostel, Sunshine Laundry, Blue Water Grill, Pacific Northwest Retreats, Mager Properties, Bison Builders, San Juan, Vineyard, Midas Real Estate, Pinnacle Pursuits LLC, CRB LLC, Maya Legacy Whale Watching, Wendy’s Automotive
It’s refreshing to hear from such a broad and valuable slice of our business community. Those who are under the illusion that we can all do without them (those living on investments, social security and other outside income while purchasing off-island “because it’s cheaper” are trying to have it both ways.
While I personally support the moratorium, it is important that (1) it be short and (2) that departments responsible for prompt enforcement of existing regulations be fully funded. The lack of funding leads to slow or ineffective enforcement which in turn makes people seek new (also underfunded) laws or more draconian steps like moratoria or outright prohibition. But think about it: even a tourniquet needs to be relaxed from time to time to keep the vulnerable bodypart alive.
The Council needs to understand that there is a lot at stake here. This is not a PR issue. Businesses we need and who are not at fault are getting hurt. There is absolutely no time to be lost, including putting together a tourism plan (long overdue) of which this problem is an integral part.
Wouldn’t it be interesting if all of these businesses staged a 3-day closure so that islanders can experience what it would really be like to not have these businesses that rely on tourism? A more realistic view of what the community would really look like without tourism could be eye-opening.
Correct me if I”m wrong, but the moratorium does not withdraw permits from vacation rentals that are already permitted; but for the time being, ceases to issue new vacation rental permits. Thus, the businesses that have depended upon tourism are still afforded the tourists that have been present up until now (covid-19 restrictions excepted). I recall that prior to covid-19, businesses had to close some days each week during the high tourist season because they could not find sufficient employees to work all of the days they wanted to be open – in no small measure due to lack of affordable housing for minimum-wage workers. I’m supportive of businesses in a vibrant community but examining the ever-increasing number of vacation rentals and the impact on the islands as a whole, seems prudent before it’s too late.
I take Bill Appel’s point about enforcement VERY seriously. The County likes to tout the $100,000 gleaned from enforcement so far, but from what I’ve read and heard, that amount derived from people operating transient rentals WITHOUT permits. What about those who actually have permits but are found to be remiss in enforcing the mandated provisions? This is crucial. The County has to hold their feet to the fire or, failing that, void their permits. Unless this happens, we cannot have any trust that County officials are doing their jobs.
I do not understand how the moratorium is “damaging” to any existing island business. The level of visitation (pre covid) has sustained these businesses, and a short-term moratorium does nothing to change that. There may be a small number of vacation rentals which close and are not replaced during the moratorium, but I don’t believe it will be significant. Meanwhile, VR’s in residential neighborhoods are having a real and negative impact on many island residents. VR’s owned by outside interests siphon money away from the islands. If businesses rely on an ever increasing level of tourism — that is clearly unsustainable. I strongly support the moratorium.
I agree with Bill Appel on several points, the first being that it is refreshing to hear from our business community. In fact, it is refreshing to hear from those on all sides of this important issue. Opportunities to be a part of the discussion have, in my experience, been discouraged and the information that has been offered is often misleading, skewed or incorrect, resulting in an effort to solve real problems with entirely the wrong approach. At the outset of the meetings on vacation rentals, as a vacation rental owner, I, and other owners, asked several times and in several ways if we could share our perspectives, including concerns about the inaccuracy of much of the data being presented,. We were flatly denied. Those who were at the meeting might remember when we put those dots on the solutions we supported. I asked that there be included choices that precluded limiting VRs. I was ignored. Consider the “data” that there is a Change.org “petition” with over 3,000 signatures supporting the moratorium. I looked at those signatures. 2,322 of those signatures are not from San Juan! County! They are from other locations, including 22 from countries other than the United States! When information is sought and presented in such disingenuous ways, one might question the message.
I urge the community to ask the council to lift this moratorium for several reasons. Janice asks that she be corrected if she’s wrong about the moratorium having no current impact because current permits are not being revoked. I would respectfully submit that she is wrong. During the February 23 council meeting, we heard the heartbreaking stories from individuals who had invested thousands in the purchase and improvement of a home here on Orcas, purchased with the understanding that they could use the home as a seasonal VR in order to make their mortgage and other expenses and with the dream to move here themselves when they could. In one case, the moratorium took effect only a day or two before the permit was approved, leaving them in financial ruin. Others found themselves in similar situations. That is an immediate impact of this moratorium. Lifting it on March 9 would restore their financial future. And there is no reason to delay a revocation of this misguided moratorium as I shall prove.
Some argue vacation rentals steal affordable housing from our community. This is false. A study of the homes currently used as a vacation rental reveals that the average price, if re-entered into the market, would be $750K and the mortgage at current rates averaging above $3,000. This is not affordable. Neither would these homes turn into affordable rentals. If rented, they would still need to rent for at least that amount so the owner could make payments, insurance, repairs and more. The moratorium as well as future limits on vacation rentals will do nothing to increase the availability of much needed affordable housing. Janice Wiemeyer further recalls businesses closing because of a lack of affordable houses for minimum wage workers. Though I don’t know about businesses that closed, assuming she recalls correctly, she also nails the real cause. Minimum wage workers. Even the studies designed to show the impact vacation rentals have on available affordable housing end up proving that the increases in rental rates and decrease in inventory of affordable housing parallel the rise in vacation rentals but not that they CAUSE these things. Instead, they point to the problem of low wages. Indeed, workers on Orcas cannot and should not be expected to work here for minimum wage. Rather, let’s consider paying them what they are worth. Further, the studies point out that building multiple affordable dwelling units have not kept up with demand. One could argue we are wasting our time focusing on further regulation of vacation rentals. Let’s change our focus to finding ways to finance the building of more affordable housing. Lastly, Jeff claims that VR’s are having a negative impact on island residents. While I agree that neighborhoods are changing, I would suggest this is a result of growth, not vacation rentals. If what Jeff is talking about are neighborhoods, I would suggest vacation rentals would be far more desirable than unregulated residences. After all, because of the 2018 regulations, vacation rentals may only house a few guests at a time, while unregulated homes can grow in numbers of relatives and children and so on without restriction. Vacation rental owners are required to hold their guests to rules regarding water use, trespassing, garbage and debris, quiet hours and are required to have a 24 hour complaint contact person who is on the island to respond. If one thinks neighborhoods with vacation rentals are a problem, begin to imagine what could happen if those homes became unregulated. If one argues the regulations aren’t being enforced, then how will more regulations help? The county is underway in enforcing those regulations and making progress. They need more time. Let’s support that effort rather than passing more regulations. On March 9, let’s reverse the terrible financial damage the council has done to those future neighbors facing financial ruin from this misguided moratorium,. Let’s shift our focus from this useless attack on vacation rentals and give our considerable talents and compassion to creating affordable housing, raising wages, and supporting the county’s efforts to enforce regulations already wisely established in 2018.
I am disheartened to see the VR discussion get thrown off track by deflections, distractions, and misinformation. In fact, the issues are quite simple and are the driving force behind the current – and badly needed – moratorium on the issuance of new permits.
The San Juan Island business owners above rightfully underscore the business-legitimacy of VRs in our community. But the inescapable truth is that island residents have painfully learned that some VR properties and their customers are simply not good neighbors. It is sad, but true. County residents suffer noise, neighborhood disruption, trespass, property damage, stress on local water and septic, excess trash left behind, and much more. More than 3,000 islanders signed a petition begging for relief.
If the 2018 regulations had been adequate, we would not be having this conversation today. But despite, or maybe because of, the 2018 regs, there are currently no limits on the number or location of Vacation Rental Permits allowed in the county. If the moratorium is not maintained and new regulations crafted before it is lifted, the current unrestricted growth of VRs and their attendant set of problems will continue.
We are indeed all in this together. There is no business logic for the VR owners and building trades to be anything but good neighbors in San Juan County. Literally no business operators in America would see it any other way. The moratorium simply levels the field, giving all stakeholders an equal motivation to set aside their differences and decide what we can accomplish together.
3000 signatures?? How many from SJC, Toby?
The misrepresentation seems to be from the Anti-vacation rental working group. They never allowed any open discussion from VR owners. I have seen very little
Data and facts. The noise disturbance? Did you file a complaint? Try to contact the owner? Vacation rentals are subject to a variety of rules and regulations and it is always in our best interest to put our best foot forward. We rely on exceptional reviews from our clients, as well as being committed to the good of our community. That’s why we keep in constant contact with our neighbors to ensure that the neighborhood is peaceful and respected by our clients. We contribute sales and lodging tax to our community. Can you say the same for long-term rentals? And homes that are used 365 days a year put way more stress on water usage and sewer than a vacation rental which is usually a seasonal rental.
You know, the thing about VRs is that we don’t know with any certainty a darn thing. For example: Do VRs impact affordable housing in the islands? How do they affect our neighborhoods and the quality of life therein? What impact do they have on the island’s natural resources? How do they affect other hospitality establishments? Does holding a VR permit increase a properties market value and is that increase in valuation taken in to account by the County? Conversely, is the market value of properties adjacent to VRs reduced due to their presence? Should tax rates be higher for VRs? Lower for those who live next to them?
Extending the moratorium would at least provide the time to address these questions. If not we fly blind into the future.
It is reiterating for the umpteenth time that the moratorium has absolutely no impact on existing VR permits. None, nada, zilch.
A complicated topic for certain. I support the moratorium, and as others have pointed out, it has no effect on existing vacation rentals. The real estate we purchased in 2015 as a rental (to family and our small business) for $305k was re-appraised by the County at double that cost two or three years later, as were a lot of other properties in that range, as the VR market was heating up. I favor continuing to allow those of us who live here full time to use their existing VRs, and I do not at all favor continuing to have investors who don’t live here full time to continue to buy up real estate as pure investments.
So, as a longtime full-time local resident, I would favor maintaining the moratorium indefinitely, while continuing to allow those with current permits to keep them, though perhaps with some caveats, such as discontinuing the permit when a property is sold.
I think it is disingenuous of these businesses and the opposers to the Moratorium to claim the moratorium on NEW permits as the culprit of their business woes- and not covid-19. The couple cited was ONE couple on SJI who bought their “dream home” and was going to use VRBO as a way to pay their obscenely high mortgage until they could retire – but should this be encouraged, and is it wise for people to be lured into a false sense of security by low interest rates (just before a crash) to live beyond their means? Didn’t this same thing happen in 2008 with the sub-prime mortgage fiasco and the banks seizing homes from millions and millions of Americans?
A huge concern being ignored in all the arguing, wrangling, and blaming the other “side” on the VRBO debate is WATER. Almost no one is discussing the impacts to our finite and precious water supply and quality. Water and climate change need to be the TOP drivers of this and any other discussion -not profit. Yet, we continue to act as though these are not grave realities and we are failing to address them.
The real question here is, what is making our costs of living so obscenely high? I know this is going to piss some people off and they will “take” offense – but to my mind, but it’s the travel/tourism/real estate industry as the many-headed hydra that it is; disguised to look like many small, “separate” businesses.
Now is the perfect time for this moratorium, as we face the Covid-19 pandemic that is changing everything about how we will work and live in the future – like it or not – and it’s far from over if we don’t address the environmental causes of pandemics and plagues (wars and deforestation.)
Meanwhile, there is a glut of feeding-frenzy bidding wars on real estate as speculative investment commodity – it’s a buyer’s market for those who can pay, and the middle class loses again. Sorry to break it to ya, but for the 40 years I’ve been here it’s been the travel/tourism/real estate industry that has created and sustained the housing crisis.
Over $100K in fines enacted in the past year sounds like big $ numbers for the county, until you realize that many of us have been asking for decades for fines for repeat violators. We have asked for many decades for the County to consider augmenting the tourism industry with other more sustainable forms of economy -it never happened- for all the reasons stated above. Now, it’s time.
And I will repeat that the moratorium is not a ban on vacation rentals. It does not affect existing vacation rentals. The moratorium will not destroy the economy.
It is a relatively short pause to consider facts and decide on the a fair and reasonable way forward for the immediate future. It will provide time to consider multiple points of view.