Tweaking the rules

Council approves changes to STA regulations

At Tuesday evening’s meeting, Council approved changes to the Short- Term Accommodation Licensing Program as well as an Official Plan amendment. Key changes included increasing fines for operating without a licence, higher penalties for not posting an STA licence number, no longer allowing secondary residence STAs, and the refusal or revocation of a licence for non-compliance.

Anthony Lemke, a Wellington commercial property owner, provided a deputation, which reiterated the role STAs in commercial properties can play in sharing and maintaining a thriving downtown core. He told Council that it is already hard enough to make a living as a small business owner, and having an STA on the property helps to keep commercial rents reasonable. “It’s really hard to make a living as a retail establishment in Wellington. Your season is really short. Unlike when we purchased the properties a long time ago, prices have gone bananas,” said Lemke. “Since the pandemic, office space has tanked.As landlords, we are the guys that give small businesses their first shot. And I can tell you we have given a bunch of small businesses their first or second shot. By eliminating the possibility of an STA on the second floor or on a larger property in the back, you are narrowing a landlord’s choice in ways of generating revenue,” he added.

Lemke told Council with these changes comes the risk of forcing small businesses out. “New buildings won’t transition to affordable, small-retail rental. They will be purchased by owner-occupied businesses who can afford them, shutting out young businesses that can’t afford a non-”subsidized” space. Or the buildings will remain residential in use,” said Lemke. “Our few commercial properties are supposed to be our engines. That is where we are supposed to be making money. Where people are being encouraged to invest. They should have the options to make good on those investments and also encourage the direction that I think the whole community would like to see, which is more storefront commercial.”

Lemke also worried about the grandfathered status that will now be attached to some properties. “When we are saying lets shut off STAs, I get it. I saw the residential neighbourhood shift. I remember that we were all hoping that this process would lead to less STAs in the residential parts of our neighbourhood. And I fear the exact opposite will happen. They will be protected sort of like super businesses where no one else will be able to compete with them. Not even in commercially zoned environments,” he said.

Sheryl Herle provided a deputation on behalf of the Licensed Short-Term Accommodators of Prince Edward County. She noted the group was relatively pleased with most decisions made, but noted there was still room for improvement. Herle’s request was for existing density requirements to be maintained, but to interpret density calculations to include both secondary and primary residences in the numerator of the calculation. “I think where we landed was there was a decision of no density caps on primary licences. To us that just sounds like it is a bit of a Wild West. Everyone who is a primary resident can now go out and apply for a primary resident status,” said Herle. She then put forward on idea for creation of a Prince Edward County STA operational committee with STA owners and associated business owners as stakeholders.

CAO Marcia Wallace explained to Council that removal of any new secondary residence STAs will require an Official Plan amendment and zoning bylaw change. “Our Official Plan as approved by the Minister had a two-year moratorium for opening it. The Planning Act does allow Council to open it early if it is municipally initiated by Council,” said Wallace.

Mayor Steve Ferguson told Council it should be cautious tinkering with a document that is so new. “We have been down this road for so long. I am challenged by an Official Plan amendment within the two-year time period. I think it is something we have to think about very carefully because of any other possible implications,” said Ferguson.

The secondary residence STA portion of the STA licensing program is to come before the Planning Committee at its September 7 meeting. Both the licensing bylaw and the planning bylaw would be ratified at the September 13 meeting. That is the date that the program would begin under the new arrangement.