Getting it right

Proposed STA changes sent back to staff

After a three-hour-long meeting last Thursday evening, council decided it needs more time to ‘get it right’ and referred the proposed list of short term accommodation changes back to staff for investigation and a report.

Earlier this year, staff brought forward a report concerning the STA study by Dr. David Wachsmuth, which stated that the STA industry in Prince Edward County is responsible for a portion of medium-term housing price growth. As a result, staff brought forward a number of recommendations to improve the STA licensing program. On June 15, a lengthy meeting was filled with concerns regarding legal non-conforming (grandfathered) status being lost by the proposed changes. Namely, there was concern that STAs would have a grandfathered status under the Planning Act, yet should an owner sell their STA, the new owner would have to comply with requirements that could restrict them from operating an STA.

In his report to Council, County Planner James Griffin outlined staff’s recommendations to restrict the STAs from the Urban Residential Type 3 zone and remove certain provisions from the zoning bylaw and place them into the new STA bylaw. This included the density portion of the file. Staff reviewed the submissions from the June 15 meeting and revised the proposed changes to the zoning by-law to make it clear that no removal of legal non-confirming rights is intended with the proposed zoning change.

Richard Elliot is a Wellington resident who owns two STA properties, one of which is zoned commercial. He was concerned that the proposed changes could see him lose his licence should he sell or pass it onto his daughter. “Commercial properties have always been an afterthought with respect to STAs,” said Elliot. “Our vacation rental business on a commercial property is now de fined as a secondary residence STA.” Elliot explained that the proposed changes show a limit of one secondary residence STA license to be issued per person. “There is nothing in the report that explains any rationale why you would limit who the purchaser on a commercial property is. Once again, the notion of what to do with commercial properties is an afterthought in this whole regime,” he said.

Anthony Lemke shared Elliot’s concerns. He agrees with trying to migrate STAs towards the commercial zone. “If a corporation owns a property on Main Street, how can it take an otherwise conforming residence and turn it into an STA?” asked Lemke. In the draft, all new STAs would have a “natural person” requirement, which refers to humans, not numbered companies and corporations. It also states that no further secondary residence STA licences will be issued to persons or corporations already in possession of at least one secondary residence STA licence. “Currently, the corporation can’t. But it’s pretty common for a corporation to own commercial properties,” added Lemke.

Mike Amos spoke and referenced a report from past Director of Community Services, Programs and Initiatives Todd Davis. Amos explained that in 2017, tourism contributed $200 million to the County’s economy and provided 35 to 40 per cent of all employment. He also noted that according to the report, folks staying in roofed accommodations spend five times more than day trippers “We don’t need to be rocket scientists to do the actual cause and effect of dismantling STAs and understanding what would happen to our friends and neighbours who have jobs here,” said Amos.

Karen Orme runs the Runaway Rooster B&B in Bloomfield and told council Bed and Breakfast establishments should be categorized differently. “We endorse staff’s recommendations to create a separate licensing stream for Bed and Breakfast establishments rather than categorize them in the primary residence STAs. It has been our recommendation since licensing was implemented in 2018 that B&Bs be recognized as distinct and in a category of its own,” said Orme.

Emily Cowan, Director of Community Services, Programs and Initiatives, provided a presentation of proposed changes to the licensing bylaw. She noted the changes came as a result of feedback from the public and stakeholders. “We are proposing a primary residence STA owner can rent out all or part of their residence as an STA,” said Cowan, who added that primary STAs do not have to meet density requirements, but noted when renting an entire primary residence STA, the owner can only do so for no more than 180 days per year.

For secondary residence STAs, it is proposed they be considered a dwelling unit, which is not a primary residence. “Secondary residence STAs are restricted to one licence only, and they must comply with density requirements,” said Cowan. This means that an owner could still hold a primary residence STA licence in the home that they reside in.

County Bed and Breakfasts regulations will remain unchanged from the current licensing bylaw. This is due to them being located in a single detached dwelling where the operator occupies the dwelling and provides no more than four guest rooms, and offers daily meals to accommodated guests.

Cowan explained that owners with a grandfathered status will not lose it should they sell “Within the STA bylaw, we are proposing to include that new owners of properties with legal non-conforming status as an STA may apply for a licence to continue that use if they meet all other eligibility provisions and meet the requirements regarding proof of showing they are purchasing what was an active STA, and that they continue to establish that they have a legal nonconforming use,” said Cowan.

Councillor Stewart Bailey said he was being asked by constituents why there can’t be a cap on licences. “Because other communities such as Toronto, Ottawa and Blue Mountain can in fact restrict or limit the number of licences, can you explain for transparency purposes why we cannot do that in our community?” asked Bailey.

Cowan explained that the crux is the fact that secondary residence licences are already included in the program. “The municipalities you refer to, when they began their licensing program, they only created licences for primary residence STAs. I know Toronto has its own act, so that is separate to how any other municipality can control any sort of licencing program. But Brampton, Hamilton and Ottawa, they did not ever create a whole home or secondary residence licence. Because we have created a secondary residence licence we can’t arbitrarily take it away without some very good reason and usually that is to do with health and safety or if they are operating without a licence,” said Cowan.

The administrative penalties bylaw proposed changes including adding fines to an STA operating without a licence to include a first offence fine of $1,000, second offence fine of $2,000 and a third offence fine of $4,000. Proposed fines for those advertising an STA without a licence number would be $100 for the first offence, $200 for the second offence and $400 for the third offence.

According to Director of Corporate and Legislative Services Arryn McNichol, there are currently 224 applications in the STA application process and another eight with overdue payments in the collection process. There are 66 applications waiting for more information, five awaiting zoning approval, and 12 waiting for building and fire approval. There have also been 73 inspections conducted in last 30 days.

McNichol also explained that prior to this year, only three unlicensed STAs were fined. This year, there have already been 14. “If we continue on, we will be at about 30 to 35 fines, so a 10-fold increase over previous years. We are moving in the right direction,” he said.

Councillor Jamie Forrester suggested it might be ideal to allow some more time to look the proposed changes over. “There are a lot of things that need to be tidied up here, and we need to get this right,” said Forrester.

Councillor Janice Maynard agreed, saying if it takes extra time, then that is what Council needs to do. “I really want to make sure that this time we have a good comprehensive view of exactly what we are doing and what the fallout or the consequences of all or any potential changes might be,” said Maynard.

CAO Marcia Wallace told Council staff could take another look at the file, but that they can’t just need another report with options, they need direction. “I think there are some things that we heard that really merit some review of the bylaw. Some are administrative, some are mechanical and some are substantive,” she said. Wallace asked for a motion for the bylaw be ammended to reflect the comments heard tonight so the whole report doesn’t come back, just the bylaw and any other amending motions.

The report was referred back to staff to investigate higher fines, stronger restrictions, reducing the 180- day limit for partial license to 45 to 60 days, allowing primary residences with secondary units to operate year-round, flexibility for commercial properties, removing natural persons restrictions and the removal of secondary residence STAs. A special committee of the whole meeting is to be called for early August to bring this item back to Council for final review and approval.