The selection criteria that will help Sechelt council determine which unhosted short-term rentals can operate in the district has now been endorsed by council.
At the Jan. 11 council meeting, staff presented the matrix for short-term rentals (STRs) that require temporary use permits (TUPs) for the first time.
The five criteria centre around neighbourhood fit, the management plan and designated responsible person, past compliance history, public comments, and proximity to existing STRs or other STR applications. Each category can receive a maximum score of 20, totalling 100 points.
But before those criteria can be considered, there are mandatory requirements each application must meet: the zoning allows for an STR; if Type 3, the STR is one single-dwelling unit; the applicant has provided a management plan, a guest safety plan and a parking plan.
Staff said they have been collaborating with the Town of Gibsons and that that local government is about four to six weeks ahead of Sechelt in its own STR regulation process. Staff also reviewed the District of Squamish, Tofino, and the industry standards in B.C. When Coun. Darren Inkster asked whether staff looked at any communities with fewer than 15,000 residents and whether they were considered tourism communities — keeping in mind bylaw enforcement capabilities — staff said that none are an identical match to Sechelt, but all are located in seaside communities in southwest B.C.
Coun. Dianne McLauchlan raised water conservation concerns, and said it would be nice to ask operators to include low flow fixtures, such as for showers. Mayor John Henderson disagreed with this point, saying, “I don't think we shouldn't go down the road of trying to enforce low flow fixtures in one part of our community unless we're prepared to do it with everybody in the community.” Coun. Inkster said he thinks weighted consideration or preference should be given to units that are conserving water by making it part of the decision criteria.
Staff noted the operator’s guide that applicants are encouraged to read does emphasize and encourage water restrictions. Staff said water conservation could be added for next year, since current applicants would not have known how much emphasis to put on that subject.
Temporary use permits (TUPs) are required in Sechelt for short-term rentals (STRs) that are on secondary residential properties (Type 3) or principal residential properties (Type 2) with more than two units. As Sechelt council adopted in October, there will be a limit of 15 Type 3 STRs, also known as unhosted STRs. The staff report in the Jan. 11 agenda says the Type 2 STRs that contain more than two self-contained units will be considered in addition to the limit of 15 TUPs.
Staff said it was too early to give an exact number of how many applications fit into the Type 2 category that requires a TUP as they are still reviewing applications, although 50 Type 1 and Type 2 applications have been submitted and 12 approved as of the Jan. 11 meeting. Almost all of those applications have been contacted about missing information, staff added.
While applications for Type 3 closed Jan. 10, the day before the meeting, applications for Type 1 and Type 2 rentals and business licences are open throughout 2023. The application fee for a three-year TUP is $1,800 and unsuccessful applications will be refunded 20 per cent of that fee, $360. The business licence fees are $3,000 for Type 3 and $900 for Type 2. The program is designed to fully recover costs associated with the application, monitoring and a full-time bylaw enforcement staff member.
Henderson asked about the fairness of the refund amount of 20 per cent, to which staff said the TUP is part of the district’s fees and charges bylaw and the procedure bylaw.
The applications are expected to be presented as a batch to council in February.