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HomeMy WebLinkAboutOrdinance #4288 - Amending the Zoning Code to Regulate the Operation of Short-Term Rentals within the City ORDINANCE NO. 4288 AN ORDINANCE AMENDING THE ZONING CODE TO REGULATE THE OPERATION OF SHORT-TERM RENTALS WITHIN THE CITY WHEREAS, the City of Canton, Fulton County, Illinois (the "City"), is a non-home rule unit of government; and WHEREAS, the City has established municipal zoning regulations for the purpose of improving and protecting the public health, safety, comfort, convenience and general welfare of the people; and WHEREAS, "Short-Term Rentals" ("STRs") are part of a relatively new and developing market, which allows persons to rent a guestroom or entire structure, building, or dwelling for a duration not to exceed thirty (30) consecutive days; and WHEREAS, STRs offer advantages to the City by providing temporary accommodations to guests, which also allows for property owners within the City to utilize their real property in a manner which provides for an economical benefit on the City and the property owner; and WHEREAS,the corporate authorities of the City,in the interest of the public health, safety and welfare have determined that it is appropriate to regulate STRs by use of the City's zoning authority due to the STRs' impact, both from an economical and a public welfare standpoint; and WHEREAS, due to the foregoing, the corporate authorities of the City requested that the Joint Planning and Zoning Commission (the "Commission") make recommendations regarding proposed textual amendments to the City's Zoning Code as set forth herein regarding STRs; and WHEREAS, public hearings on the requested textual amendments were held before the Commission on March 14, 2022 and April 18, 2022 in the manner prescribed by the City's Municipal Code and by Illinois law; and WHEREAS, after holding such public hearings, the Commission has recommended the adoption of the textual amendments as requested by the corporate authorities; and WHEREAS,the corporate authorities of the City have determined that it is necessary and in the best interest to amend the Zoning Code to allow for STRs and to establish zoning rules and regulations relative to such STRs; and NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CANTON, FULTON COUNTY, ILLINOIS AS FOLLOWS: Section 1. The City of Canton hereby finds as fact the recitals set forth above and are incorporated herein as though fully set forth; 1 i Section 2. That Section 10-17-15 of the Canton Municipal Code is hereby added to Title 10, Chapter 17, and said Section shall state as follows: "10-17-15: SHORT-TERM RENTALS: (A)Purpose: Short-term rentals, as that term is defined herein, are relatively new and part of a developing market, which is ever evolving and marketed predominantly through e- commerce. Such short-term rentals offer economic advantages and benefits to the City and to property owners in the City who seek to operate such short-term rentals. In order to fulfil said benefit and alleviate any potential adverse impacts in the City,the City has determined that it is reasonable and necessary to regulate short-term rentals in the interest of public health, safety, and the welfare of the City's residents. (B)Definitions: As used in this Section, unless a different meaning clearly appears from the context, the following terms shall have the meanings ascribed as follows: GUEST: A person or persons staying in a short-term rental overnight and having a permanent residence at an address other than the address of the short-term rental temporarily occupied. GUESTROOM: A room or group of rooms within a structure, building, or dwelling that is kept, used, maintained as or advertised or held out to the public to be a short-term rental, as defined herein, where sleeping or room accommodations are furnished for payment. HOTEL/MOTEL TAX: The tax as imposed by Title 3, Chapter 23, "Hotel/Motel Tax," of the Canton Municipal Code. OPERATOR: The owner of the short-term rental or the owner's agent who operates the short-term rental by renting out guestrooms to guests, as provided herein. OWNER: Any natural person, partnership, corporation, or association that is the legal, record owner of the property where the short-term rental is operated thereon. SHORT-TERM RENTAL: A structure,building,or dwelling,including,but not limited to, an apartment, house, cottage, condominium, duplex, or other furnished accommodation where no more than 5 guestrooms are rented to public guests for no more than twenty-nine (29) consecutive days. The City's Joint Planning and Zoning Commission (the "Commission") may recommend allowing more than five (5) guestrooms upon majority vote of the Commission. All such accommodations are to be reserved in advance, via any method, including e-commerce. Short-term rentals shall include the rental of a single guestroom and even the rental of the entire structure,building,or dwelling to such reserved public guests. (C)Conditional Use Permit Required. 2 I. No person, partnership, corporation, or association, either as owner or operator, or in any other capacity, shall operate or allow to be operated a short-term rental without having first obtained a conditional use permit to do so for each location. If a location has more than one (1) unit at that location (e.g. more than one apartment or condominium), then only one conditional permit for that location is required. The use of any property as a short-term rental without a conditional use permit is expressly prohibited. 2. Conditional use permits shall be issued for a period of one (1) year from the date of issuance, unless revoked sooner. The permit is non-transferable and non-assignable. 3. No conditional use permit shall be issued or renewed annually for a short-term rental that is delinquent in its payment of the hotel/motel tax due to the State of Illinois or the City as provided for in Title 3, Chapter 23,"Hotel/Motel Tax,"of the Canton Municipal Code. 4. If a conditional use permit was issued for the prior year, the approval for a renewed permit shall be obtained from the Director of Commercial Planning & Zoning, or his/her designee, provided that the previously issued permit was not revoked or suspended and the rental is current on the hotel/motel tax and all necessary fees. Every renewal application shall satisfy all requirements set forth in this Section 10-17-15. 5. No conditional use permit shall be initially issued unless a public hearing is held, the Application is reviewed by the Joint Planning and Zoning Commission for its findings and recommendations, and it is then authorized by the City Council. 6. The City requires a nonrefundable one-hundred-dollar ($100.00) processing fee to be paid at the time of application for the conditional use permit. Said processing fee will also apply to all renewal applications. (D)Districts Short-Term Rentals Are Permitted: The operation of a short-term rental in the City is permitted in any and all Districts that allow one-family residential dwellings, two- family residential dwellings, multiple dwellings, bed and breakfasts, hotels, and/or motor hotels. (E)Application: Applications for short-term rental conditional use permits shall be filed with the City Clerk and Planning and Zoning Department and processed in the same manner as that is required for special uses as set forth in Sections 10-17-7(B) of this Chapter. Said applications shall be of such form, accompanied by such information, as shall be established from time to time by the Joint Planning and Zoning Commission. An initial form of the application may be prepared by the City Attorney until same is amended by the Joint Planning and Zoning Commission. 3 (F) Standards: The Joint Planning and Zoning Commission shall not recommend a short-term rental conditional� use permit to the City Council for approval unless the following requirements have been met: 1. The owner and/or operator has obtained a necessary special use permit, if the property where the short-term rental is proposed to be operated at would fall within a "Special Use Exception" within such particular District; 2. The short-term rental will be operated in a manner so that the public health, safety and welfare will be protected; 3. The short-term rental shall not cause appreciable injury to the value of other property in the neighborhood in which it is located; 4. The short-term rental complies with all building standards applicable to a "dwelling," as that term is defined, in the Building Codes set forth in Section 4-1-1 of the Canton Municipal Code; 5. The short-term rental complies with all applicable state and local fire standards; 6. The short-term rental has been inspected by the Director of Commercial Zoning and Planning or his/her designee; 7. The operator of the short-term rental provides the City with an insurance certificate indicating that the Owner, Operator, and the property are covered by commercial liability insurance with limits of not less than one million dollars ($1,000,000.00) per occurrence, for bodily injury and property damage arising from and after the issuance of the conditional use permit; a. The insurance policy shall be issued by an insurer duly authorized to provide insurance policies within the State of Illinois. Furthennore, any such insurance policy must include a provision requiring at least thirty (30) day advance notice to the City prior to a cancellation or lapse of the policy. Any such policy shall remain in fiill force and effect for the duration of the conditional use. 8. The short-term rental complies with all hotel/motel tax requirements, including but not limited to all reporting requirements, of the Illinois Department of Revenue and the City for the operation of a short-term rental; and 9. The short-term rental complies with all other requirements of the City Municipal Code and applicable State and Federal laws and regulations. Upon recommendation by the Joint Planning and Zoning Commission, the City Council may refer the application back to the Commission for additional review, or, by motion, may approve, approve with conditions, or disapprove, an application for a conditional use permit utilizing the same standards set forth above. 4 i Regardless of the Joint Planning and Zoning Commission's findings on any or all of the foregoing standards, the City Council may deny a conditional use permit upon an express finding that such denial is in the public interest. An operator that is granted a conditional use permit under this Section shall continue to comply with all of the above standards, as well as any other requirements set forth in this Section or the Canton Municipal Code, throughout the term of any permit granted hereunder. (G) Posting of Conditional Use Permit: Every operator shall post, in a conspicuous place within the short-term rental, the conditional use permit along with the name and telephone number of the operator or his/her/its authorized agent. (H)Applicability of Hotel/Motel Tax:All short-term rentals are subject to the Hotel/Motel Tax as set forth in in Title 3, Chapter 23, "Hotel/Motel Tax," of the Canton Municipal Code. All short-term rentals are required comply with the same requirements set forth in said Title 3, Chapter 23 as "hotels," including the Collection and Payment of Tax set forth in Section 3-23-5 of the Canton Municipal Code and are further subject to all penalties set forth in such Title 3, Chapter 23 of the Canton Municipal Code for failure to comply with those requirements. (I) Inspections: The City reserves the right to inspect any short-term rentals or request documentation from an owner or operator of a short-term rental for purposes of determining compliance or continued with any of the standards or requirements of this Section or the Canton Municipal Code. (J) Minimum/Maximum Stay: 1. No guest may stay in an authorized short-terns rental for less than twenty-four (24) hours. 2. No guest may stay in an authorized short-term rental for more than twenty-nine (29) consecutive days. (K)Penalty; Violations; Revocation or Suspension of Conditional Use Permit: 1. Violations of this Section shall be governed by Title 1, Chapter 27, "General Penalty," of the Canton Municipal Code and the fee schedule that is adopted by the City Council from time to time, if applicable. 2. Any conditional use permit may be revoked or suspended by the Mayor if the Mayor finds: a. That the operator has violated and/or fails to comply with any of the provisions of this Section regulating short-term rentals; 5 i b. The operator knowingly furnished false or misleading information or withheld relevant information on any application for a permit required by this Section or knowingly caused or suffered another to furnish or withhold such information on his, her, or its behalf; c. The operator fails to pay any applicable State or City tax or fee; or d. The owner, operator, or their guests, violate any local, state or federal law relating to the property and/or the occupation and/or operation thereof. Any illegal conduct being conducted on the premises may be considered grounds for suspension or revocation of a conditional use permit granted hereunder. The Mayor, or his or her authorized designees, before revoking or suspending any permit for a period of more than fourteen (14) days, shall give the operator at least ten (10) days' written notice of the charges against him, her, or it and the opportunity for a public hearing before the Joint Planning and Zoning Commission and the Mayor, at which time the operator may present evidence bearing upon the question. In such cases, the charges shall be specific and in writing.The Joint Planning and Zoning Commission shall make a recommendation to the Mayor regarding the revocation and/or suspension; however, the Mayor is not bound to accept such recommendation in his final determination. 3. In addition to the foregoing provisions, the proper authorities of the City may institute any appropriate action or proceedings, including the obtaining of an injunction to prevent a violation of this section. The defendant in any such action shall be responsible for the reasonable costs of such action,which shall include,but not limited to,the City's court costs and attorney fees. Such sums shall be made a part of any judgment entered and shall be enforceable as part of the final_judgment." Section 3. This Ordinance shall be in full force and effective immediately upon its passage by the City Council of the City of Canton and approval by the Mayor thereof. PASSED AND APPROVED THIS 19th day of April, 2022. AYES: Alderperson Andra Chamberlin, Justin Nelson, John Lovell, Craig West, Angela Hale, Jeff Fritz, Angela Lingenfelter, Greg Gossett NAYS: None ABSENT: None APPROVED: By: Va �X Kent Mc owell, ayor 6