Council directs staff to draft targeted short‑term‑rental rules for major regional events; pilot parameters set

At the April 28 meeting staff presented a draft approach to allow limited short‑term rental (STR) use tied to major regional events. The draft mirrored Boulder’s special‑event licensing approach: a short‑term Type B license valid only for a defined event window, intended to expand available visitor lodging during peak demand while placing guardrails on long‑term STR conversions.

Council debated four principal policy questions: whether Type B should be resident‑only or open to nonresident property owners; whether properties with multiple dwelling units (ADUs, duplexes) should be eligible for multiple event licenses; whether apartment complexes should be allowed to license vacant units for the event period; and whether tenant subletting should be allowed and, if so, what proof of owner consent is required.

Key council guidance (staff direction passed unanimously): impose a resident‑first pilot (start restricting Type B to city residents for the first year), allow ADU inclusion, permit multiple licenses on a property where appropriate, prohibit licensing deed‑restricted affordable units, require owner consent for sublets (documented), set a fee tier to recover staff processing costs (staff to recommend exact fee), consult with Visit Longmont and the Longmont Tourism Improvement District (LTID) before second reading, and require a program review after one year or after two covered events (whichever comes first). Council also asked staff to include a revocation pathway tied to public‑safety calls and to design a public reporting/complaint mechanism.

Council emphasized this would be a pilot to assess whether event‑linked licensing relieves pressure on hotel supply during major events without degrading neighborhood livability. Staff will return with ordinance language that reflects council guardrails and the requested stakeholder consultation.