City committee recommends permitting short-term rentals in all zoning districts

Shown above is the main entrance to the John G. Christy Municipal Building, commonly known as City Hall, at 320 E. McCarty St. in Jefferson City.
Shown above is the main entrance to the John G. Christy Municipal Building, commonly known as City Hall, at 320 E. McCarty St. in Jefferson City.

Despite residents' concerns regarding short-term rentals, the Jefferson City Planning and Zoning Commission unanimously recommended approval of making these type of rentals permitted uses within all zoning districts.

City staff requested amending the zoning code Thursday to establish short-term rentals as permitted uses in residential and industrial zones. Short-term rentals are already permitted in commercial and mixed-use zoning districts.

Under the city code, a property owner could rent out a house to someone for less than one month. A property owner also could rent out a lodging room where someone rents a single room or basement for less than a month. Short-term lodging room rentals cannot have multiple rentals in the same residence.

Currently, property owners who want to operate short-term rentals in residential or industrial districts must acquire a special exception use permit. That process involves a public hearing before the Planning and Zoning Commission and Jefferson City Council.

The special exception use permit process is supposed to help city staff identify and address potential negative impacts, Jefferson City Planning Manager Eric Barron said.

City staff is having difficulties identifying negative externalities that have a higher impact on surrounding properties compared to other permitted uses within residential districts, Barron added.

For example, home day cares can have up to 10 children, which usually means there is an increase in activity at the home. That can lead to a higher level of impact on the residential area compared to a short-term rental, Barron said.

"In comparison, most short-term rentals have a very low level of impact," Barron said. "They're fairly benign in terms of visibility and not a whole lot of disruption to a neighborhood."

Since the city adopted a short-term rental ordinance in 2017, there have been nine special exception permits requested, with eight being approved by the City Council, Barron said.

In many of those cases, there have been several concerns from neighbors. Barron said many of those concerns were already addressed within the city's specific use standards of short-term rentals.

The special standards in city code would still apply to short-term rentals even if they are permitted in all zoning districts, Barron said. These standards include the number of guests permitted, required signage and provisions related to accessory structures.

A maximum of five unrelated people or an unlimited number of related individuals can stay in a Jefferson City short-term rental at a time, according to city code.

Last month, the Planning and Zoning Commission requested city staff present an amendment to move short-term rentals from a special exception use to a permitted use in the city's zoning code.

Resident Carla Kessell spoke in favor of the proposed amendment Thursday, adding short-term rentals sometimes provide more amenities, like full-sized kitchens and laundry facilities, as well as more privacy for families.

On average, short-term rental property owners have eight to 10 rentals a month and guests normally rate those owners online, Kessell said. This means short-term rental property owners are more likely to maintain their properties, she added.

Kessell said she wants to operate a short-term rental on the east side of Jefferson City.

"Being on the historic end, there was a lot of damage in May and we lost a lot of buildings," she said. "It's a way to have traveling tourism and to showcase how nice the east end is."

No one spoke in opposition of the proposed amendment during Thursday's meeting.

Under the ordinance, property owners renting out one room have to pay the city's 7 percent lodging tax.

They will also need business licenses to operate short-term rentals.

If city staff receives a complaint about a short-term rental, Barron said, they will investigate the complaint. If the property owner is in violation of the city code, city staff will give him or her a warning.

If the property owner does not comply, Barron added, city staff may summon him or her to municipal court.

The City Council will have a public hearing regarding the proposed amendment Nov. 18.

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