Council delays STR decisions

COEUR d’ALENE — The Coeur d’Alene City Council on Tuesday delayed several decisions on proposals for tougher regulations on short-term rentals.

The council declined to pass a one-year moratorium, starting March 1, on issuing new permits for STRs.

It took no action on repealing a municipal code that provides a permit exemption for STRs rented fewer than 14 days in a year.

It also declined to act on an amendment to impose stiffer penalties — $1,000 for the first offense, $2,000 for the second, and $5,000 for the third — for operating an STR without a permit.

It did approve a fee increase to the annual STR renewal permit of $84 for a total of $180.

A line of STR owners filled the Library Community Room and for nearly two hours objected to the changes.

They argued vehemently against a moratorium and said it could hurt their livelihood. They said higher fees were not necessary and a “huge burden,” and also said they wanted the code continued that allows someone to rent their home for two weeks without a permit, as that was big business come Ironman time in June.

They argued STRs are not the source of problems, such as noise, litter and parking, and instead provide income and economic benefits to the city.

Many were critical of the City Council for approving an agreement in November of nearly $40,000 with Granicus, based in St. Paul, Minn., for short-term rental host compliance services.

Since last year, the city has discussed ways to get a handle on the rise of STRs accused of adversely affecting neighborhoods.

The city has issued 615 STR permits in its current calendar year, many of those recently as word spread of proposed larger penalties and a moratorium.

It is estimated there are hundreds of STRs operating without permits, and that some downtown areas have heavy concentrations of them, which harms neighborhood integrity.

But most council members said they were not prepared to make a decision on the STR proposals.

They said they needed to find a balance to protect neighborhoods and still allow property owners to utilize their property.

“I think we can achieve both,” said Councilwoman Amy Evans.

Councilors noted that Granicus has not finished its report on STRs in the city, and that information was needed to determine their impact.

They also voiced concerns that proposed violation fees might be too excessive.

“We’re going from zero to 60 on fines,” Councilwoman Christie Wood said.

Councilors also said they wanted to hear more from the public.

“We left the community out of the discussion,” said Councilman Dan Gookin.

Evans said there was no easy answer.

“This might be one of the most difficult issues that’s come before us,” she said.