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[00:00:45]

>> CLERK:

>> CLERK: MAYOR, WE DO HAVE A QUORUM TODAY.

>> MAYOR NIRENBERG: ALL RIGHT.

GOOD AFTERNOON, EVERYONE.

THE TIME IS 2:11 P.M.

WELCOME TO OUR CITY COUNCIL B SESSION.

AS AN ASIDE, IF ANYONE WANTS CAKE, THERE IS CAKE TO THE SIDE.

[1. Briefing on an Ordinance amending Chapter 16, Licenses and Business Regulations, and Chapter 35, Unified Development Code, of the City Code of San Antonio, Texas, relating to Short Term Rentals. [Roderick Sanchez, Assistant City Manager; Michael Shannon, Director, Development Services] ]

>> HAPPY BIRTHDAY.

>> MAYOR NIRENBERG: THANK YOU.

WE HAVE ONE ITEM ON THE AGENDA TODAY I'LL TURN IT OVER TO OUR DEPUTY CITY MANAGER ERIK WALSH

>> THANK YOU, MAYOR.

THIS AFTERNOON WE'VE GOT AN ITEM ON THE AGENDA REGARDING THE SHORT TERM RENTAL ORDINANCE, THE ORDINANCE IS A RESULT OF AN ISSUE ISSUED BY FORMER COUNCILMAN GALLAGHER ON 2015.

THE CCR REQUESTED THAT THE STAFF REVIEW MUNICIPAL CODES IN OTHER CITIES, RESEARCH THE REMITTANCE OF HOTEL OCCUPANCY TAXES.

DEVELOPMENT SERVICES DEPARTMENT HAS TAKEN THE LEAD ON THIS EFFORT AND CREATED A TASK FORCE MADE UP OF SHORT-TERM RENTAL OPERATORS, NEIGHBORHOOD ASSOCIATION LEADERS, REAL ESTATE PROFESSIONALS AND THE HOTEL AND APARTMENT ASSOCIATIONS TO PROVIDE STAKEHOLDER INPUT THROUGH THE PROCESS.

BETWEEN MARCH AND NOVEMBER OF 2017, THE STAFF FROM DEVELOPMENT SERVICES AND FINANCE MET WITH THE TASK FORCE A TOTAL OF 16 TIMES.

THE TASK FORCE AND THE CITY STAFF REVIEWED THE SHORT-TERM ORDINANCES FROM OTHER CITIES AND AROUND TEXAS, AND THROUGHOUT THE NATION IN ORDER TO IDENTIFY BEST PRACTICES.

THE TASK FORCE PROPOSED AN ORDINANCE THAT BALANCES THE RIGHTS OF SHORT-TERM PROPERTY -- SHORT-TERM RENTAL PROPERTY OWNERS WITH A CHARACTER OF EXISTING NEIGHBORHOODS, SOMETHING THAT MANY COMMUNITIES ACROSS THE COUNTRY HAVE CONTINUED TO TRY TO BALANCE.

IN ADDITION THE TASK FORCE, THE PROPOSED ORDINANCE WAS REVIEWED AND CONSIDERED BY THE BOARD OF ADJUSTMENT, THE PLANNING COMMISSION, THE ZONING COMMISSION, WHOSE BOARD RECOMMENDATIONS ARE INCORPORATED INTO WHAT WILL BE PRESENTED TO YOU TODAY.

WITH THAT, I'LL TURN IT OVER TO MIKE SHANNON, AND HE'LL WALK US THROUGH THE PRESENTATION.

>> SHANNON: THANK YOU, ERIC.

GOOD AFTERNOON, MAYOR AND COUNCIL.

AS ERIC INDICATED I'M HERE TO TALK A LITTLE BIT ABOUT SHORT-TERM RENTALS AND A PROPOSED ORDINANCE THAT WE HAVE WORKED WITH A LARGE NUMBER OF OUR COMMUNITY, INCLUDING THE STAKEHOLDER TASK FORCE AND THE GENERAL PUBLIC, SO I WANT TO WALK YOU THROUGH THAT TODAY.

THERE WE GO.

ALL RIGHT.

SO WE TALKED A LITTLE -- IN AUDIO] -- WITH DIRECTION FROM FORMER COUNCILMAN, I'LL WALK YOU THROUGH THAT.

AND THEN I'LL WALK YOU THROUGH WHAT THE TASK FORCE, CITY STAFF AND BOARD AND COMMISSIONS WANT TO PROPOSE AN AS AN OPTION FOR US TO CONSIDER IN SAN ANTONIO THAT WE DO THINK PROVIDES A BALANCED ORDINANCE APPROACH TO THE SHORT-TERM RENTAL MARKET AND THEN WE CAN ALSO TALK ABOUT THE NEXT STEPS MOVING FORWARD.

SO A LITTLE BIT OF BACKGROUND ON THIS IS -- I THINK WE'RE ALL AWARE THAT ONLINE SERVICES AND THE SHARING ECONOMY HAS REALLY EXPLODED OVER THE LAST DOZEN OR SO YEARS, MAYBE EVEN THE LAST FIVE YEARS, WHERE A LOT OF PEOPLE IN OUR COMMUNITY AND AROUND THE WORLD ARE USING THINGS LIKE HOME AWAY, AIRBNB, THE SHORT-TERM RENTAL MARKETPLACE TO FIND SHORT-TERM RENTALS TO GO VISIT NEW AREAS, DESTINATIONS LIKE SAN ANTONIO AND AROUND THE WORLD, BUT IT'S NOT UNCOMMON IN OTHER AREAS.

WE TALK ABOUT TNCS AND THE UBERS AND LIFTS, SO THIS SHARING ECONOMY IS JUST GROWING EXPONENTIALLY.

SO WHAT HAPPENED A YEAR AGO WHEN WE WERE ASKED TO TAKE A LOOK AT THIS, WE STARTED LOOKING AT IT, THERE'S NO CURRENT STATE OR LOCAL REGULATION SPECIFIC TO SHORT-TERM RENTALS.

A YEAR AGO, THE STATE, THROUGH THAT LEGISLATIVE PROCESS, THERE

[00:05:01]

WERE PROPOSALS TO REGULATE THROUGH THE STATE ON HOW CITIES CAN REGULATE SHORT-TERM RENTALS.

THOSE ACTUALLY DIDN'T PASS, SO THERE'S A SENATE BILL AND A HOUSE BILL THAT WAS DISCUSSED.

SO WE FULLY EXPECT THAT TO BE DISCUSSED AT THE NEXT LEGISLATIVE SESSION AS WELL.

WE CAN TALK MORE ABOUT THAT.

BUT THINK OF OUR OWN LOCAL RULES, OUR CURRENT LOCAL RULES IN OUR UNIFIED DEVELOPMENT CODE, IT HAS A LOT OF SIMILAR-TYPE USAGE.

SHORT-TERM RENTALS ARE RENTING OUT YOUR HOME OR PROPERTY FOR LESS THAN 30 DAYS, A WEEKEND, A NIGHT, A WEEK, VERY COMMON.

BUT WE HAVE RULES AND REGULATIONS IN OUR CODE RIGHT NOW AND DEFINITIONS FOR THINGS LIKE SINGLE FAMILY RESIDENCES, SO WE ALL KNOW WHAT THOSE ARE.

WE ALSO HAVE BED AND BREAKFASTS, WE KNOW WHAT THOSE ARE.

AND WE HAVE HOTELS. AND A LOT OF THOSE DEFINITIONS OVERLAP TO SOME EXTENT, TALKING ABOUT TEMPORARY LODGING, CHARGING FOR A FEE, THOSE TYPE OF THINGS, BU, IT DOESN'T ADEQUATELY OR SPECIFICALLY ADDRESS WHAT WE'RE SEEING NOW, AND THAT'S ALSO SOMETHING THAT A LOT OF OTHER JURISDICTIONS AND STATES ARE LOOKING AT AS WELL.

SO WE STARTED TACKLING THIS, REALLY STARTING IN MARCH OF LAST YEAR, BUT IF YOU LOOK, AGAIN, THE FORMER COUNCILMAN GALLAGHER OF COUNCIL DISTRICT 10 IN JANUARY OF 2017 REALLY THROUGH A CCR ASKED CITY STAFF TO LOOK AT THIS AND FIGURE OUT -- LOOK AT SEVERAL THINGS.

THERE ARE REALLY FIVE ELEMENTS OF THAT CCR THAT THEY ASKED US TO LOOK AT.

WE WENT TO THE GOVERNANCE COMMITTEE AT THAT TIME SAID WE'RE GOING TO PUT A TASK FORCE TOGETHER, GO THROUGH A LARGE PROCESS TO SEE WHAT IS OUT THERE IN OTHER JURISDICTIONS, WHAT ARE THE PUBLIC SAFETY IMPLICATIONS OF THESE SHORT-TERM RENTALS IN OUR COMMUNITY AND AROUND THE NATION.

WE WANTED TO RESEARCH THINGS LIKE THE HOT TAX AND HOW THOSE ARE AFFECTED, OR SHOULD THEY BE PAYING OR ARE THEY PAYING? AND SOME OTHERS.

SO WE DID THAT, WE STARTED IN MARCH, AND WE PUT TOGETHER A TASK FORCE THAT REALLY SPENT A LOT OF TIME -- CONSIDERABLE AMOUNT OF TIME DEBATING, RESEARCHING, LOOKING AT WHAT CAN AND SHOULD BE DONE.

SO GO BACK TO A YEAR AGO, MARCH OF 2017, DEVELOPMENT SERVICES INVITED A LOT OF PEOPLE TO OUR DEPARTMENT AND WE SAID, HEY, LET'S START TALKING ABOUT THIS.

SO WE PUT TOGETHER A TASK FORCE.

WE PUT TOGETHER A PROCESS WHERE WE ASKED ABOUT 24 OR SO PEOPLE THAT ARE REALLY HEAVY INVOLVED WITH SHORT-TERM RENTAL CONCERNS NO MATTER WHAT YOUR OPINION IS OF THEM, BUT WE HAD -- WE WANTED A REAL BALANCED APPROACH, A BALANCED REPRESENTATION ON THIS COMMITTEE, THIS TASK FORCE TO START TALKING ABOUT THIS AND LOOKING AT THAT CRR AND THE SHORT-TERM RENTAL INDUSTRY AND ANY REGULATIONS THAT WE COULD LOOK AT.

WE WANTED TO BE TRANSPARENT SO THESE ARE ALL OPEN MEETING, WE PUT ALL OUR STUFF ON THE WEBSITE OF COURSE AS WE WENT ALONG.

BUT IF YOU LOOK AT THIS SLIDE HERE, WHAT WE'RE KIND OF SUMMARIZING WE HAD NEIGHBORHOOD LEADERSHIP, A LOT OF NEIGHBORHOODS THAT HAVE EXPRESSED SOME CONCERN THAT SHORT-TERM RENTAL OR HAVING THEM IN YOUR NEIGHBORHOOD OR A LOT OF THEM IN YOUR NEIGHBORHOOD STARTS COMMERCIALIZING YOUR RESIDENTIAL NEIGHBORHOOD AND THE NEGATIVE IMPACTS OF THAT.

WE ALSO HAD A LOT OF SHORT-TERM OPERATORS, WE INVITED THEM IN BECAUSE THEY'RE THE ONES THAT ARE USING RESIDENCES THAT THEY OWN AND RENTING THEM OUT, SO WE WANTED TO HEAR FROM THEM EXACTLY WHAT WAS GOING ON, WHAT THEY FELT ABOUT A PROPOSED ORDINANCE AND WHAT THEY MIGHT LOOK LIKE AND WE ALSO HAD SOME INDUSTRY INVOLVED WITH IT.

THE LODGING ASSOCIATION OF SAN ANTONIO, HOTEL LODGING ASSOCIATION, APARTMENT ASSOCIATION, REAL ESTATE COUNCIL, WE ASKED THOSE ORGANIZATIONS -- AUDIO] -- REALLY ALL THE DATA THAT WE CAN SO WE CAN MAKE AN INFORMED DECISION AND PRESENT SOMETHING TO YOU-ALL ON HOW TO MOVE FORWARD IN OUR CITY.

SO JUST TALK A LITTLE BIT ABOUT THE CCR THAT REALLY INSTIGATED THIS PROCESS.

AGAIN, THERE WERE FIVE FOCUS AREAS.

WE WANTED TO LOOK AT THE IMPACT OF PROPERTY VALUES AND SAFETIES, A LOT OF QUESTIONS AND CONCERNS, REALLY ON ALL SIDES OF THE DEBATE, WHAT ARE OTHER CITIES AND JURISDICTIONS AND STATES DOING AROUND THE COUNTRY, NOT ONLY TEXAS AND OUR LOCAL AREAS AROUND US, BUT AROUND THE COUNTRY.

AGAIN, I MENTIONED THE HOT TAX.

AND THEN IF WE WERE TO GO, WHAT WOULD REGISTRATION AND PERMITTING LOOK LIKE? WHAT COULD IT LOOK LIKE IF -- WHAT ARE THE OPTIONS THERE? AND THEN, AGAIN, ANY POLICIES AND PROCEDURES TO ENHANCE PUBLIC SAFETY.

SO THAT WAS SPECIFICALLY TAKEN FROM THE CCR.

THAT'S HOW WE KIND OF MODELED OUR PROCESS.

WE WANTED TO MAKE SURE WE AT LEAST ADDRESSED WHAT WE WERE ASKED TO DO, AND WE DID THAT.

SO I'LL PRESENT THAT TO YOU.

SO FIRST AND FOREMOST, PUBLIC SAFETY, PROPERTY VALUES AND SAFETY, VERY IMPORTANT TO ANYBODY THAT HAS ONE OF THESE, THAT THEY'RE USING AS A SHORT-TERM RENTAL, BUT ALSO A NEIGHBORHOOD OR COMMUNITY THAT HAS THESE IN THEIR NEIGHBORHOOD.

SO THE FIRST THING I ASKED OUR STAFF TO DO WAS TO RESEARCH WHAT STUDIES HAVE BEEN DONE, IF ANY,

[00:10:01]

WHAT DATA IS OUT THERE THAT HAS TACKLED THIS.

I MENTIONED THAT THE SHORT-TERM RENTAL PHENOMENON WHILE PEOPLE HAVE BEEN RENTING PORTIONS OF THEIR HOMES OR THEIR HOMES FOR A LONG TIME, THIS SHORT-TERM INDUSTRY IS RELATIVELY NEW, AND ANY ORDINANCES THAT CITIES HAVE HAD ARE RELATIVELY NEW SPECIFIC TO THE TERM "SHORT-TERM RENTALS." SO LOOKING AT THAT, THERE WERE NOT A LOT OF RESEARCH OUT THERE.

BUT WE DID FIND A FEW.

WE FOUND THREE.

I LISTED THEM UP HERE, CORNELL, WILLIAMS, THE MIT, ULC COMBINED STUDY, THEY TRIED TO TACKLE WHAT'S GOING ON, WHAT ARE THE IMPACTS ON SHORT-TERM RENTAL ON THE NATIONAL COMMUNITIES OR COMMUNITIES.

REALLY WHILE THERE'S A LOT OF DATA, THESE RESEARCH REPORTS ARE PRETTY IMPRESSIVE, I THINK THEY SPENT A LOT OF HOURS RESEARCHING, BUT ALL THREE OF THESE STUDIES THAT WE COULD FIND CONCLUDED THAT EITHER PROTECT OR SLIGHTLY INCREASE PROPERTY AREAS IN THAT AREA, THAT THERE WASN'T A LOT OF DATA THAT SHOWED THAT THEY DECREASED THE PROPERTY VALUES, SO THAT WAS KIND OF THEIR SUMMARY CONCLUSION, BUT IT WASN'T SIGNIFICANT INCREASE OF PROPERTY VALUES EITHER, SO... SO THAT'S WHAT THEY SAID.

WE ALSO WANTED TO LOOK AT SAFETY, RIGHT? THERE ARE PLENTY OF SHORT-TERM RENTALS IN OUR -- SAN ANTONIO RIGHT NOW.

THEY ARE HAPPENING, THERE'S BEEN ARTICLES ABOUT THEM, THE FINAL FOUR RECENTLY HAD AN ARTICLE TALKING ABOUT PEOPLE UTILIZING SHORT-TERM RENTALS TO COME AND EXPERIENCE SAN ANTONIO'S FINAL FOUR, BUT -- SO WHAT -- ARE THERE ANY SAFETY STATISTICS THAT WE CAN LOOK AT TELLING US THEY'RE MORE SAFE, LESS SAFE, THEY'RE CAUSING HARM? AND SO WHAT WE DID, WE LOOKED AT THOSE THAT WE KNOW, WE ACTUALLY GOT THE DATA FROM THE FINANCE DEPARTMENT, I THINK THE MIDDLE OF LAST YEAR, THERE WAS ABOUT 150 OR SO THAT WERE ALREADY LISTED PAYING THE HOT TAX, SO WE TOOK THAT, THOSE PROPERTIES, WE PULLED THREE YEARS OF POLICE AND CODE ENFORCEMENT DATA TO TRY TO SEE IF THERE WAS ANY TREND ON THAT, AND THERE WAS NO SIGNIFICANT -- OR NO REAL -- NO TREND THAT THEY SAID, HEY, THERE'S MORE OR LESS POLICE OR CODE ENFORCEMENT DATA THAT SUGGESTS THERE ARE PROBLEMS OR THEY'RE WORSE OR ANYTHING LIKE THAT.

SO NO MEASURABLE DIFFERENCES IS REALLY WHAT CAME OUT OF THAT.

SO, AGAIN, I THINK I MENTIONED THIS, WE HAD TO DO SOME RESEARCH AS TO WHAT OTHER CITIES ARE DOING, AND IF YOU JUST -- YOU GO ON GOOGLE, YOU DO ANY KIND OF RESEARCH FOR A SMALL AMOUNT OF TIME THIS IS SOMETHING THAT A LOT OF COMMUNITIES ARE STRUGGLING, AT LOCAL LEVELS LIKE SAN ANTONIO OR STATE LEVELS.

AND NOT JUST UNITED STATES, IT'S ACTUALLY AROUND THE WORLD.

SO WHAT WE -- I JUST PUT A SNAPSHOT UP HERE.

WE HAVE A MUCH BIGGER SPREADSHEET OF A LOT MORE CITIES, WHAT WE WERE HOPING FOR WAS -- TO MAKE MY LIFE EASIER -- WAS TO JUST FIND THAT BEST PRACTICE ORDINANCE RG RIGHT, THAT WE CAN JUST PULL OFF THE SHELF AND MAYBE APPLY TO SAN ANTONIO AND IT HAS -- THIS ONE WORKS AND IT BALANCES EVERYTHING WELL AND IT'S GOOD.

BUT, OF COURSE, THAT'S VERY RARELY THE CASE.

WHAT WE FOUND WAS THERE'S A WIDE VARIETY OF ORDINANCES OUT THERE, SOME THAT HAVE VERY MINIMAL REGISTRATION PERMITTING REQUIREMENTS, SOME THAT HAVE A MUCH MORE RESTRICTIVE REGULATION, IF YOU WILL, WHERE SHORT-TERM RENTALS CAN BE, SHOULD BE, AND THAT'S PROBABLY THE WAY IT SHOULD BE.

YOU KNOW, LAST YEAR WHEN WE WERE UP TESTIFYING AGAINST THE PROPOSED STATE LEGISLATION, WE WERE ACTUALLY TALKING ABOUT HOME RULE, RIGHT? WE WANTED CONTROL -- WE WANT SOMETHING THAT'S GOOD FOR SAN ANTONIO.

I THINK THAT'S WHAT A LOT OF OTHER JURISDICTIONS HAVE DONE FOR THEIR COMMUNITIES.

EVERY COMMUNITY IS A LITTLE BIT DIFFERENT.

SO WE JUST LIST THERE, YOU KNOW, THE YEARS THEY WERE DONE, SOME -- THEY CATEGORIZE THEM, WHERE THEY'RE ALLOWED, THOSE TYPE OF THINGS.

BIG CITIES, SMALL CITIES, THERE'S A WIDE VARIETY OF OPTIONS OUT THERE.

SO I'LL TALK A LITTLE BIT ABOUT THE HOT, RIGHT, THE HOTEL OCCUPANCY TAX BECAUSE THAT WAS SOMETHING THAT WAS, YOU KNOW, VERY QUICKLY -- WE HAD TO ADDRESS.

THE CCR REALLY ASKED US TO LOOK AT, ONE, VERY BASIC QUESTION: SHORT-TERM RENTALS, AGAIN, IF I'M GOING TO RENT OUT A PIECE OF MY PROPERTY, A ROOM OR THE WHOLE PROPERTY FOR LESS THAN 30 DAYS, BUT IT'S MY HOUSE OR ACCESSORY DWELLING IN THE BACKYARD OR SOMETHING LIKE THAT, OR JUST A HOUSE I OWN, I LIVE SOMEWHERE ELSE, DO I -- AM I REQUIRED TO PAY THE HOT, RIGHT? AND VERY SIMPLE ANSWER IS YES, BY BOTH STATE AND LOCAL STATUTE, VERY SIMPLE.

AND EVEN OUR STAKEHOLDER TASK FORCE, THE SHORT-TERM RENTAL OPERATORS IN THE ROOM, IT WAS A VERY QUICK UNDERSTANDING THAT, YEAH, EVERYBODY NEEDS TO PAY IT.

THAT DOESN'T MEAN EVERYBODY LIKES TO PAY IT IF THEY HAVE A SHORT-TERM RENTAL RENTAL.

THAT DOESN'T MEAN EVERYBODY IS PAYING IT.

CLEARLY THEY'RE NOT.

THE NUMBER IS 290ISH, ALMOST 300 SHORT-TERM RENTALS WITH SAN ANTONIO THAT ARE REGISTERED

[00:15:01]

WITH FINANCE.

THERE EASIEST MATS OUT THERE OF -- ESTIMATES OF 2,000 OUT THERE OPERATING AT ANY GIVEN TIME IN SAN ANTONIO.

THERE'S A BIG DELTA, RIGHT, THAT PEOPLE AREN'T PAYING THE TAX.

SO THAT'S A CONCERN.

THE ANSWER IS VERY SIMPLY, THEY SHOULD BE PAYING THE TAX.

AND THIS SLIDE HERE SHOWS A LITTLE BIT ABOUT OUR HOTEL OCCUPANCY TAX, I KNOW YOU GUYS PROBABLY SEE THIS EVERY BUDGET SESSION, BUT THE HOT RATE RIGHT NOW COMBINED IS 16.75%.

7% OF THAT IS CITY, ANOTHER 2% FOR CONVENTION CENTER, THE REST IS COUNTY AND STATE TAXES.

YOU BREAK THAT DOWN OVER TO THE 7% CITY HOT RATE, IT'S BROKEN DOWN HERE ON HOW WE CAN SPEND THAT.

I HAVE TROY HERE IF YOU HAVE ANY DETAILED QUESTIONS ON THAT FOR ME.

SO REALLY WHY WE'RE HERE TODAY: SO THAT KIND OF DEFINES THE PROCESS.

SOME OF THE QUESTIONS WE WERE CHARGED TO ANSWER AND YOU'LL SEE A LOT OF OUR SHORT-TERM RENTAL TASK FORCE MEMBERS AND A LOT OF THOSE THAT WEREN'T MEMBERS BUT VERY PART OF THE PROCESS THROUGH GENERAL MEETINGS AND SUCH, THEY'RE HERE TODAY, SO THANK YOU GUYS AND GALS FOR ALL YOUR TIME, ENERGY AND EFFORT.

THAT PROCESS WAS 16 MEETINGS PLUS THE BOARD'S, WE KIND OF TALLIED IT UP, IT WAS ALMOST SEVEN OR 800 HOURS OF PERSON, TIME, JUST IN MEETING SETTINGS, DEBATING WHAT THIS COULD AND SHOULD LOOK LIKE.

SO THIS IS WHERE WE LANDED.

I'M GOING TO TALK ABOUT OUR PROPOSED ORDINANCE, AND THE WHOLE KEY THAT WE FEEL IS APPROPRIATE, AND EVEN THE TASK FORCE MEMBERS AS THEY STRUGGLED WITH VERY DIFFERENT OPINIONS AS TO WHAT THE REGULATIONS COULD LOOK LIKE IS WE NEED TO HAVE SOMETHING THAT'S BALANCED, RIGHT? WE KNOW THAT THERE'S SOME THAT WANT NO OR VERY MINIMAL REGULATION OF THIS INDUSTRY AND THEY THINK THAT'S THE RIGHT WAY TO GO.

WE THINK OTHERS -- THERE'S A LARGE GROUP OF OTHERS THAT FEEL LIKE WE NEED, YOU KNOW, FAIRLY STRONG REGULATION OF WHERE THESE CAN BE TO PROTECT THE CHARACTER OF NEIGHBORHOODS AND OTHER ISSUES, SO WE WORKED THROUGH THAT.

WE BELIEVE THAT THIS PROPOSED ORDINANCE IS KIND OF BALANCED SOMEWHERE IN THE MIDDLE, NOT EVERYBODY'S HAPPY WITH EVERYTHING, BUT THAT'S USUALLY WHERE WE END UP WHEN WE GO THROUGH AND TRY TO CREATE A BALANCED APPROACH.

SO THE PROPOSED ORDINANCE WOULD DO A FEW THINGS.

FIRST AND FOREMOST, SHORT-TERM RENTALS APPLY THROUGH DSD, GET REGISTERED, OKAY, WE'LL TALK ABOUT THE FEE AND PERMITTING PROCESS, BUT WE WOULD THEN KNOW, YOU KNOW, IF YOU'RE A SHORT-TERM RENTAL, THERE WILL BE A CHECKS AND BALANCE FOR THE HOT TAX THAT YOU'LL BE REGISTERED WITH FINANCE, A LITTLE APPLICATION PROCESS, AND WE'LL GO THROUGH THAT.

BUT -- AND THEN WHAT QUICKLY DID COME OUT OF THE TASK FORCE WAS THERE'S REALLY TWO TYPES OF SHORT-TERM RENTALS, AND SOME CAN ARGUE THERE'S THREE OR FOUR TIMES BUT LET'S JUST BOIL IT DOWN TO THE TWO. IT'S EITHER OWNER OCCUPIED OR NOT OWNER OCCUPIED IF YOU WILL.

SO WE DEFINED TWO TYPES OF SHORT-TERM RENTALS AS OTHER ORDINANCES ASHED -- AROUND THE NATION HAVE.

TYPE ONE IS HOSTAGE SHARING OR OWNER OCCUPIED, THAT'S WHERE YOU, YOUR PRIMARY RESIDENCE, YOUR HOMESTEAD, AND YOU EITHER RENT OUT A ROOM OR YOUR ACCESSORY DWELLING UNIT IN THE BACK OR MAYBE YOU JUST RENT IT OUT WHILE YOU'RE ON VACATION, BUT IT'S YOUR HOME.

THAT'S YOUR NEIGHBORHOOD, SO THAT'S ONE TYPE.

AND WE HAVE SOME RULES AND REGULATIONS FOR THOSE.

AND THEN TYPE TWO IS THE NONHOSTED OR THE NONOWNER OCCUPIED, MAYBE ITS A PROPERTY YOU OWN AND YOU'RE GOING TO RENT IT OUT ON THE PLATFORMS, THE STR PLATFORMS, BUT YOU DON'T LIVE THERE.

YOU MAINTAIN IT OR YOU HAVE IT MAINTAINED, BUT -- AND THERE WAS A LOT OF CONCERN.

I WILL TELL YOU FROM THE TYPE ONES AND TYPE TWOS, THE CONCERNS ARE SHORT-TERM RENTAL WHILE THEY'RE -- THERE WERE MANY EXPRESSED, TYPE 2S WERE ACTUALLY THE ONES WHERE MOST OF THE VOCAL CONCERNS WERE, WHERE SOMEONE WASN'T LIVING THERE OR HAD DIRECT CONTROL OF THE PROPERTY, AND SOME OF THOSE STORIES OR CONCERNS CAME UP.

SO THOSE WERE PROBABLY MORE OF THE CONCERNS.

SO ONE OF THE THINGS WE IDENTIFIED WAS THAT TYPE 1S, THE PROPOSED ORDINANCE SAYS THEY'RE ALLOWED BY RIGHTS IN RESIDENTIAL NEIGHBORHOODS OR COMMERCIAL.

SO IN NEIGHBORHOODS, IF YOU'RE TYPE 1 IN THIS PROPOSED ORDER, YOU'RE FINE.

YOU DON'T HAVE TO DO ANYTHING SPECIAL, COME IN AND APPLY, FOLLOW THE RULES AND YOU'LL GET YOUR PERMIT.

TYPE 2, THE NONOWNER OCCUPIED, THERE ARE A LOT OF COMMERCIAL PROPERTIES BUT IF YOU WANT TO BE IN A RESIDENTIAL PROPERTY, MEANING A NEIGHBORHOOD-SCENED PROPERTY OR ANYTHING LIKE -- ZONED PROPERTY YOU'LL HAVE TO GO THROUGH THAT.

THAT'S WHAT'S PROPOSED TODAY IN THE ORDINANCE.

SO LET'S TALK ABOUT THAT, BECAUSE THIS WAS A HOTLY DEBATED ITEM THROUGH THE TASK FORCE AND WE'VE HEARD A LOT OF OPINIONS ON WHICHEVER SIDE OF THE -- I HATE TO SAY THAT, THE SIDE OF THE AISLE, BUT ZONING VERSUS SPECIAL EXCEPTION.

YOU ALL ARE VERY FAMILIAR WITH ZONING, ZONING HAPPENS, IT GOES THROUGH A PROCESS, SOMEONE CHANGES THEIR ZONE FROM

[00:20:01]

RESIDENTIAL TO COMMERCIAL.

ONCE IT'S ZONED, IT'S PERMANENT UNTIL REZONED, RIGHT? SO IT'S PERMANENT WITH THE LAND, IT DOESN'T EXPIRE WHEN A NEW OWNER COMES IN, IT DOESN'T NEED TO BE RENEWED EVERY SO MANY YEARS, RIGHT? AND FOR SOME, THAT'S GOOD.

FOR SOME, THAT'S NOT SO GOOD BECAUSE ONE OF THE CONCERNS THAT THE TASK FORCE AND CITY AS WELL WAS WHAT ABOUT BAD ACTORS? WE ALWAYS TALK ABOUT THE BAD ACTORS? WHAT ABOUT THE SHORT-TERM RENTAL PROPERTY OWNERS THAT JUST LET THOSE -- THEY HAVE NO CONTROL OF THEIR PROPERTY, IF YOU WILL.

PARTY HOUSES, DISRUPTIVE TO THE COMMUNITY, NUISANCE PROPERTIES OR WHAT HAVE YOU, SO THAT WAS A CONCERN, SO OWNERSHIP GENERALLY DICTATES HOW WELL THEY MAINTAIN THEIR PROPERTY AND HAVE CONTROL OF THAT.

SO WITH ZONING, ONCE IT'S ZONED, IT'S THERE FOR NEW OWNER AVENUE OWNER.

SO SPECIAL EXCEPTIONS, THOUGH, ARE THROUGH THE BOARD OF ADJUSTMENT PROCESS, THEY'RE NOT PERMANENT WITH THE LAPPED, -- LAND, THEY CAN EXPIRE WITH OWNERSHIP, SO IN OUR PROPOSAL IT'S EVERY THREE YEARS OR NEW OWNERSHIP WOULD REQUIRE A NEW APPLICATION FOR SPECIAL EXCEPTION AND BOTH CAN HAVE CONDITIONS IF WE NEED TO.

THAT'S -- SOME WANTED NO ZONING REGULATION, OTHERS WANTED VERY EITHER COMMERCIAL OR NONRESIDENTIAL ZONING.

THIS IS SOMEWHERE IN THE MIDDLE AND IT'S WHAT WE CAME UP WITH THROUGH THE TASK FORCE.

THE PROPOSED ORDINANCE ALSO IDENTIFIES SOME DENSITY LIMITATIONS.

SO ONE OF THE CONCERNS THAT WAS ADDRESSED A LOT THROUGH OUR DISCUSSION WITH THE TASK FORCE AND THE COMMUNITY WAS, WELL, WHAT IF A SHORT-TERM RENTAL TAKES OVER THE WHOLE NEIGHBORHOOD, EVERY SINGLE PROPERTY, NO ONE LIVES THERE, THEY JUST RENT OUT TYPE 2S, NOT OWNER OCCUPIED, IS THAT NOW A BUSINESS DISTRICT OR A HOTEL DISTRICT, THAT WAS ONE OF THE QUESTIONS.

SO ONE OF THE WAYS TO KIND OF WORK THROUGH THAT IS TO CREATE SOME DENSITY REQUIREMENTS FOR THE TYPE 2S.

AND SO THE TASK FORCE WRESTLED WITH THIS, WE ACTUALLY COPIED A LITTLE BIT OF WHAT'S OUT OF THE EXISTING BED AND BREAKFAST ORDINANCE SAYING THAT WE'RE GOING TO HAVE SOME SPACING CRITERIA.

SO IF, YOU KNOW, EVERY TYPE 2 SHORT-TERM RENTAL, IF YOU HAVE ONE, THE NEXT ONE HAS TO BE AT LEAST 300 FEET DOWN THE STREET, SO WE CREATE SOME SPACING OF THESE NONOWNER OCCUPIED, AND THEN 150 FEET IF -- AUDIO] -- THERE WERE SOME OTHERS DISCUSSED AND WE MAY TALK ABOUT THEM TODAY, BUT THAT WAS PROVIDED IN THE ORDINANCE.

A LITTLE NOTE ON THE BOTTOM OF THIS IS THE PLANNING COMMISSION ACTUALLY WENT THROUGH THEM, THEY ADDED THAT WE SHOULD INCLUDE EXISTING BED AND BREAKFASTS IN OUR CITY THAT ARE ALREADY OUT THERE.

THERE'S ABOUT 30 OF THEM IN OUR CITY RIGHT NOW.

THEY SHOULD BE USED AS ONE OF THESE PINPOINTS TO HAVE SOME DENSITY LIMITATIONS.

SO THAT'S IN THE PROPOSED ORDINANCE TODAY WITH THE RECOMMENDATION OF THE PLANNING COMMISSION.

ONE OTHER THING THERE, PARKING WAS ADDRESSED, ONE OF THE CONCERNS WAS IF YOU INVITE ALL THESE PEOPLE INTO YOUR HOUSE, IS THERE ENOUGH PARKING? IS IT GOING TO LITTER THE STREET AND EVERYTHING? AND THAT WAS WRESTLED, BUT REALLY IT LANDED ON THE SAME PARKING REQUIREMENTS THAT YOU MAY HAVE ON YOUR HOUSE.

AT LEAST ONE OFF-STREET PARKING SPACE PER A DWELLING UNIT IS WHAT'S PROPOSED.

SO I'LL TALK ABOUT A COUPLE OTHER TOP ISSUES THAT WE DISCUSSED THAT ARE IN THE ORDINANCE.

SO LEGAL NONCONFORMING USE.

THE CONCEPT OF GRANDFATHERING IS SOMETHING YOU MAY HEAR OR YOU HAVE HEARD, THIS COMES UP WITH JUST ABOUT EVERY NEW ORDINANCE THAT WE PASS, EVERY TIME WE UPDATE THE UNIFIED DEVELOPMENT CODE, THE BUILDING AND FIRE CODES, THE IDEA OF LEGALLY NONCONFORMING USE.

SO IF YOU'RE CURRENTLY DOING IT LEGALLY NOW AND WE PASS AN ORDINANCE THAT SAYS YOU HAVE TO DO SOMETHING DIFFERENT, THERE IS A STATE REQUIRE LEVEL OF PROTECTION FOR THAT LEGAL REQUIRED USE.

SO, AGAIN, THAT'S BUILT INTO THIS ORDINANCE.

I MENTIONED IT EARLIER.

SO IF YOU'RE LEGAL TODAY, WHICH THERE'S NO REGISTRATION OR PERMIT REQUIREMENT, BUT YOU'RE PAYING THE HOT TAX, DOING THINGS LEGALLY, THERE'S A GOOD CHANCE THAT YOU'LL GET GRANDFATHERED OR LEGAL NONCONFORMING RIGHTS FOR THAT ZONE ISSUE IF IT'S RESIDENTIAL OR COMMERCIAL.

IF YOU'RE NOT, YOU WILL NOT GET GRANDFATHERED.

I WILL MEN SEAN THAT EVEN THE GRANDFATHER OR NONCONFORMING PROPERTIES WILL STILL HAVE TO COME THROUGH THE PERMITTING PROCESS LIKE WE TALKED ABOUT AND GET INSPECTIONS AND WHAT HAVE YOU.

THE OTHER KEY ISSUE THAT WE BUILT INTO THE ORDINANCE, VERY, VERY -- WELL, I THINK NOT EVERYBODY AGREED 100% WITH ANYTHING, THIS HAD A HIGH LEVEL OF CONSENSUS WAS NO ONE REALLY WANTED TO ADVOCATE FOR THAT BAD ACTOR PROPERTY OWNER THAT REALLY CAN'T CONTROL THEIR SHORT-TERM RENTAL THAT CREATES THIS PUBLIC NUISANCE IN A NEIGHBORHOOD.

SO WE HAVE ENFORCEMENT TOOLS FOR THOSE TYPE OF BAD ACTORS, SO WE BUILT IN LANGUAGE IN THE ORDINANCE THAT SAYS IF WE HAVE MULTIPLE CONFIRMED VIOLATIONS, LIKE PUBLIC NUISANCE, PD, CODE ENFORCEMENT, VIOLATIONS AT THAT PROPERTY, THREE WITHIN SIX MONTHS, THE CODE OFFICIAL, THAT WOULD BUTS, CAN REVOKE YOUR PERMIT.

[00:25:01]

SO THAT'S AN INCENTIVE FOR PEOPLE TO MAKE SURE THAT THEIR SHORT-TERM RENTAL, AND THERE ARE A LOT OF THEM THAT ARE GOOD FOR THE COMMUNITY, GOOD FOR THAT NEIGHBORHOOD, NOT A PUBLIC ARE,E GOING TO REVOKE YOUR PERMIT.

THERE IS A DUE PROCESS ON THAT, DON'T WORRY, THAT THEY CAN APPEAL THAT, BUT WE WOULD HAVE THE EVIDENCE THERE THROUGH CONFIRMED VIOLATIONS.

THAT WAS REALLY A KEY COMPONENT I THINK FOR MOST OF THE PEOPLE, EVEN THE SHORT-TERM OPERATORS SAID I WANT -- AUDIO] -- SO THAT WAS REALLY IMPORTANT.

SO I'LL TALK A LITTLE BIT ABOUT THE PERMIT APPLICATION.

I I'VE TOUCHED ON THEM ALREADY.

THINK OF A PERMIT APPLICATION, YOU'LL COME IN, APPLY TO DSD, SHOW US EVIDENCE THAT YOU'RE ALREADY LINKED UP WITH FINANCE, REGISTERED TO PAY YOUR HOT TAX, YOU'LL GIVE US SOME INFORMATION, LIST OF OWNERS OR OPERATORS WITH 24 HOUR ADDRESS -- OR CONTACT INFORMATION SO WE CAN GET IN TOUCH WITH THEM QUICKLY IF ANYTHING COMES UP.

THERE ARE MINIMUM INSURANCE REQUIREMENTS, BASIC -- IN CASE ANY -- ANYTHING HAPPENS ON THAT PROPERTY, YOU'VE GOT TO SHOW US THAT YOU HAVE SOME INSURANCE.

WE WANT A SITE PLAN, A FLOOR PLAN.

WE ARE PROPOSING AN INSPECTION PROCESS, WHERE CITY STAFF WILL ACTUALLY GO OUT AND CHECK THINGS LIKE FIRE SAFETY, SMOKE DETECTORS OR CARBON MONOXIDE, FIRE EXTINCTERS, EXITING, THAT LIFE SAFETY ELEMENT BECAUSE YOU'RE BRINGING A GUEST INTO YOUR HOME WE TALKED ABOUT THE ENFORCEMENT REQUIREMENTS AND WHICH ALREADY TALKED ABOUT THE SPECIAL EXCEPTION FOR TYPE 2S.

SO, OF COURSE, WE HAD TO TALK ABOUT FEES.

WHAT IS THIS GOING TO COST? WHAT IS IT GOING TO COST THE SHORT-TERM RENTAL OPERATOR IF THEY HAVE TO APPLY FOR A PERMIT AND GET THIS REGULATION, THIS SERVICE, THIS OVERSIGHT? SO WE LANDED ON FEES THAT ARE VERY -- THEY'RE BASICALLY THE FEES THAT WE USE TODAY FOR OTHER PER PERMITTING AND CERTIFICATES OF OCCUPANCY.

WHAT'S PROPOSED IS AN INITIAL REGISTRATION FEE OF $200.

YOU HAVE TO REAPPLY EVERY THREE YEARS OR WHEN YOU CHANGE OWNERSHIP.

THE RENEWAL FEE WILL BE $100.

NOW, IF WE GO OUT AND INSPECT AND WE HAVE TO FAIL YOU BECAUSE YOU'RE MISSING ALL THESE SAFETY ELEMENTS, AND, AGAIN, YOU'RE GOING TO HAVE THAT, YOU'RE GOING TO HAVE A CHECKLIST TO -- DON'T CALL US OUT THERE UNTIL YOU'RE READY, BUT WE'LL GO OUT THERE AND WE'LL VERIFY EVERYTHING, BUT IF NOT, IF WE HAVE TO GO BACK OUT, THERE'S A REINSPECTION FEE OF 51.50, WHICH IS THE CURRENT FEE WE HAVE, AND THE SPECIAL EXCEPTION FEE, THAT PROCESS OF GOING THROUGH THE BOARD OF ADJUSTMENT, THAT FEE IS $400.

THOSE ARE THE FEES PROPOSE.

SOME WANTED MUCH LESS, IF NOT ANY.

OTHERS UKS AND I'LL SHOW YOU HERE, OTHERS THOUGHT MORE WOULD BE APPROPRIATE TO 100% COST RECOVER, WE'LL TALK ABOUT THAT.

SO WE ALREADY TALKED ABOUT GOING THROUGH THE BOARDS AND COMMISSIONS, BOARD OF ADJUSTMENT, PLANNING COMMISSION, ZONING COMMISSION.

THEY ALL HEARD THIS AND THEY HEARD WHAT THE TASK FORCE CAME UP WITH, THE PROPOSED ORDINANCE, WHAT WE'RE -- THEY ALL RECOMMENDED WE GO FORWARD AND PRESENT THAT TO YOU-ALL TODAY.

THERE WAS A COUPLE TWEAKS TO THAT.

FOR EXAMPLE, THE BOARD OF ADJUSTMENT ADDED SOME LANGUAGE TO ENSURE THAT SPECIAL EXCEPTION PROCESS WOULD INCLUDE A REVIEW OF THE COMPATIBILITY WITH THE CHARACTER OF THE NEIGHBORHOOD.

THE PLANNING COMMISSION ASKED US TO LOOK AT POSSIBLY BANNING THEM FROM HISTORIC DISTRICTS, ESSENTIALLY I'M SUMMARIZING THERE.

WE'VE ACTUALLY LOOKED AT THAT WITH THE CITY ATTORNEY'S OFFICE AND THE RULES AND REGULATIONS AT THE STATE LEVEL THAT ARE GIVEN TO US, THE POWERS GIVEN TO A CITY THROUGH THE HISTORIC CHAPTER WE'RE NOT ALLOWED TO DO THAT, BECAUSE HISTORIC -- THE HISTORIC CHAPTER IN THE STATE CODE REALLY TALKS ABOUT THE ARCHITECTURAL FEEL AND LOOK OF THOSE STRUCTURES, IF YOU WILL, NOT NECESSARILY THE USE.

SO IF WE WANTED TO PROHIBIT THAT, WE COULDN'T JUST USE AN H DESIGNATION TO QUOTE, UNQUOTE, BAN THEM.

SO WE DID GO TO COMMUNITY HEALTH AND EQUITY ON JANUARY 25TH, WE GAVE A BRIEFING AND HAD SOME COMMENTS, THANK YOU THOSE THAT WERE THERE, BUT NO ACTION WAS TAKEN, OF COURSE.

AND THEN ON FEBRUARY 6TH, THE ZONING COMMISSION, THEY'RE THE ONES WHO ADDED SOME OF THAT BED AND BREAKFAST LANGUAGE AND DENSITY REQUIREMENTS.

SO WE'VE BEEN THROUGH THAT.

NOW WE TALK ABOUT WHAT IT WOULD TAKE FOR US, WE'RE GOING TO CHARGE SOME FEES, WHAT WILL WE NEED THE STAFFING LEVEL TO PROPERLY REGULATE THIS.

IF YOU LOOK ON THE LEFT SIDE OF YOUR PRESENTATION, THOSE ARE DSD STAFF, SO YOU'RE THINKING OF AN INSPECTOR, A CODE OFFICER, A PLANNER TO GUIDE THEM THROUGH THE BOA PROCESS, AND DSD SPECIALIST THAT'S GOT LIKE A PERMIT, SOME OF THE PROCESSES OF THE PERMITS FOR US, SO THAT WILL BE FOUR STAFF.

AND THEN FROM THE FINANCE DEPARTMENT STAFF, YOU KNOW, A COMPLIANCE OFFICER, WE THINK THERE'S GOING TO BE CERTAINLY, YOU KNOW, WE'RE GOING TO HAVE THESE PEOPLE THAT ARE GOING TO HAVE TO PAY THE HOT TAX AND WE HAVE TO, YOU KNOW, MAKE SURE WE GET COMPLIANCE ON THAT, SO THERE'S TWO STAFF MEMBERS THERE, SENIOR COMPLIANCE ANALYST AND COLLECTION SPECIALIST AND TROY CAN ACTUALLY TALK ABOUT IF NEEDED, BUT WE'RE ALSO LOOKING TO OUTSOURCE THROUGH A COMPANY THAT WILL HELP US TRACK THIS.

THEY WILL SCRUB THE PLATFORMS, THERE'S REALLY A LOT OF PLATFORMS OUT THERE, EVEN THOUGH THERE'S TWO R 03 BIG ONES AND FIND THESE THAT ARE RUNNING

[00:30:01]

SHORT-TERM RENTALS BUT MAYBE NOT COMING IN TO GET PERMITTED OR PAYING THE HOT TAX.

SO THERE'S A CONTRACTUAL SERVICE FUND THERE.

AND WHAT THAT WOULD LOOK LIKE IS THE ESTIMATED COST -- IT'S A THREE-YEAR PROGRAM, EVERY THREE YEARS YOU NEED TO RENEW, SO IN YEAR 1 WE ANTICIPATE REVENUES ABOUT 285,000 WITH EXPENDITURES ABOUT 314,000, SO THERE'S CERTAINLY A NET NEGATIVE THERE OF 29,000, SO NEVER GOOD.

YEAR 2 AND 3, THE REVENUE WE WOULD PREDICT WOULD BE A LOT LOWER, BECAUSE ONCE YOU GET YOUR INITIAL FEE YOU DON'T HAVE TO REAPPLY FOR ANOTHER THREE YEARS.

THE EXPENDITURES STAY ABOUT THE SAME IN THIS PROPOSAL AND YOU'LL SEE THE NET NEGATIVE OF ABOUT 230,000.

THAT'S FOR THE DSD PERMITTING SIDE.

THOSE MONIES WOULD HAVE TO BE PICKED UP BY THE DSD ENTERPRISE FUND AND/OR THE GENERAL FUND CODE ENFORCEMENT PIECE THAT WE TALKED ABOUT, WE'D WORK THROUGH BUDGET ON THAT.

AND THEN THE OTHER SIDE OF THE SLIDE IS REALLY THE FINANCE, AND THEIR REVENUES, THEY'RE PREDICTING 175 TO 190,000 OF REVENUES THAT WOULD OFFSET THE COST OF THEIR STAFF AND CONTRACTUAL SERVICES.

SO THAT'S THE PROPOSED ORDINANCE.

VERY SUMMARIZEED, YOU'VE ALL READ THROUGH THE WHOLE THING AND UNDERSTAND IT WELL, BUT WE WANT TO ALSO THROW OUT SOME OTHER OPTIONS, BECAUSE THAT'S WHAT WE'VE HEARD.

WHAT ARE THE OTHER OPTIONS THAT WERE DISCUSSED THAT YOU COULD STILL CONSIDER? AND, AGAIN, WE THINK WE HAVE -- REGULATION OVER HERE OR A LITTLE STRONGER ON THE REGULATION OVER HERE.

HERE ARE A FEW OPTIONS THAT WE CAN CONSIDER -- OR THAT YOU CAN CONSIDER.

SO WE CERTAINLY REMOVE THE NEED FOR THE INITIAL CITY INSPECTION, OKAY? SO THERE ARE SOME JURISDICTIONS THAT ARE DOING A SELF-CERTIFICATION ON SOME OF THOSE SAFETY ITEMS WHERE -- THROUGH THE PERMIT APPLICATION, THEY WOULD CERTIFY, THEY HAVE THE FIRE EXTINGUISHER THERE, CERTIFY THEY HAVE THE PROPER EGRESS, THE CARBON MONOXIDE DETECTORS IF APPLICABLE.

WE COULD HANDLE REACTIVE COMPLAINTS IF THAT CAME ABOUT.

CERTAINLY THAT WOULD BE A LITTLE EASIER ON THE OPERATOR.

IT WOULD ALSO REDUCE THE AMOUNT OF RESOURCES WE WOULD NEED, MAYBE WE DIDN'T NEED THAT INITIAL DSD INSPECTOR.

THE ZONING CASE, WE TALKED ABOUT THAT, THAT'S ANOTHER ONE, YOU COULD ALLOW SHORT-TERM RENTALS TO BE BY RIGHT IN ANY OF THE DISTRICTS, RESIDENTIAL OR COMMERCIAL, THAT'S KIND OF HOW IT IS TODAY, BUT THAT, AGAIN, THE CONCERNS THAT WE HEARD THROUGHOUT THE PROCESS, THAT'S NOT WHERE OUR PROPOSAL LANDED, BUT THAT IS SOMETHING YOU COULD DO.

IT WOULD REMOVE THE TYPE 2 SPECIAL EXCEPTION PROCESS AND THE COST ASSOCIATED WITH THAT FOR SHORT-TERM RENTALS.

ON THE OTHER SIDE OF IT, THIS COULD MAYBE NOT BE EVERY THREE YEAR SYSTEM PROCESS, IT COULD BE AN EVERY YEAR OR TWO YEARS, RIGHT, MAKING SURE THAT WE GO OUT AND TAKE A LOOK AT THESE YEARLY.

ALL RIGHT, IF WE FEEL THAT EVERY THREE YEARS MAY BE TOO LONG TO NOT BE ON THE LOOKOUT FOR THESE.

ANOTHER ONE WOULD BE MAYBE LIMIT TYPE 2 TO ONLY COMMERCIAL PROPERTIES, DO TOTALLY ZONING, IT HAS TO BE COMMERCIAL BECAUSE IT FEELS OR LOOKS MORE LIKE A HOTEL THAN A RESIDENCE AT THAT POINT ANYWAY.

SO THOSE, AGAIN, WOULD BE KIND OF THE OTHER END OF THE SPECTRUM AND, AGAIN, THINGS THAT WE DEBATED THROUGHOUT THE PROCESS.

SO OUR STAFF RECOMMENDATION, JUST FINISHING IT UP, AGAIN, OUR STAFF RECOMMENDATION WOULD BE TO, -- YOU KNOW, WE'RE FORWARDING YOU WHAT WE THINK THE TASK FORCE AND US BEING PART OF THAT AS WELL AND GOING TO THE BOARDS AND COMMISSIONS WE RECOMMENDATION MACHINED THAT AS OUR PROPOSED ORDINANCE FOR SAN ANTONIO BUT CERTAINLY OPEN TO ALL YOUR COMMENTS AND QUESTIONS AND SUGGESTIONS.

SO WE EVENT CHEWLY WANT TO GET TO COUNCIL FOR FINAL CONSIDERATION OF THE ORDINANCE, AN ORDINANCE AND I DO WANT TO SAY AGAIN THANK YOU TO NOT ONLY -- I KNOW MY STAFF WORKED A LOT OF HOURS BUT MORE IMPORTANTLY THE COMMUNITY PEOPLE THAT CAME AND GAVE THEIR TIME AND ENERGY, SOME HAVE BEEN AT EVERY MEETING DAY ONE, TASK FORCE, GENERAL MEETINGS.

OTHERS HAVE BEEN INVOLVED VERY PASSIONATELY A LITTLE LATER IN THE PROCESS, STILL A LOT OF GOOD INPUT, GOOD DEBATE, VERY PROFESSIONAL EVEN THOUGH THEY ALL DISAGREED AND WE ALL DISAGREED ON SOME PRETTY SIGNIFICANT TOPICS, I WANT TO THANK THEM THOSE THAT ARE HERE AND THOSE THAT ARE WATCHING.

WITH THAT, THAT'S THE END OF MY PRESENTATION.

I'LL BE HAPPY TO ANSWER ANY QUESTIONS.

>> MAYOR NIRENBERG: THANK YOU, MIKE, FOR THE PRESENTATION AND THANK YOU TO ALL THE MEMBERS OF THE COMMUNITY WHO HAVE COME OUT OR WRITTEN IN AND ATTENDED MEETINGS ON THE SUBJECT.

THIS IS A VERY DIFFICULT ISSUE AND IT'S PROBABLY ONE OF THE MORE IMPORTANT ONES THAT WE'LL TACKLE WITH REGARD TO NEIGHBORHOOD POLICY, BECAUSE PEOPLE PURCHASE A HOME AND THEY WANT TO ENJOY THAT HOME AS THEIR SANCTUARY AND EXPECT A CERTAIN LEVEL OF PREDICTABILITY.

AT THE SAME TIME, THIS IS BRAND-NEW INDUSTRY AND IF WE'VE LEARNED ANYTHING FROM OUR EXPERIENCE WITH RIDESHARE, IT TAKES SOME TIME AND CARE TO FIND THE RIGHT BALANCE OF REGULATION THAT WOULD SUIT A CITY LIKE

[00:35:03]

SAN ANTONIO.

SO GIVEN THIS IS THE FIRST TIME THAT THE COUNCIL AS A BODY HAS SEEN THE ORDINANCE, I DOUBT WE'RE GOING TO HAVE A CONSENSUS TODAY, SO I'M LOOKING FORWARD TO HEARING THE COMMENTS.

I WILL SAY THAT IT HAS OCCURRED TO ME THAT WE -- AS WE'VE OUTLINED SA TOMORROW AND ONE OF THE IMPORTANT VALUES THAT WE'VE UNDERSCORED IN SA TOMORROW IS THAT WE WANT TO MAINTAIN THE INTEGRITY OF NEIGHBORHOODS, AND THIS IS ONE OF THE LIGHTNING RODS OF POLICY MAKING, I THINK, THAT WE WILL HAVE COME TO ALONG THE WAY.

SO I WANT TO THANK AND COMPLIMENT COUNCILMAN TREVINO FOR TRYING TO STRIKE A BALANCE WITH SOME OF THE PROPOSALS THAT HE PUT FORWARD ON THAT, SO LET ME TURN IT OVER TO HIM FIRST TO TALK ABOUT THOSE AND THEN WE CAN GO AROUND WITH COUNCIL COMMENTARY.

COUNCILMAN?

>> TREVINO: THANK YOU, MAYOR.

I THINK YOU'RE SPOT ON.

THE FACT THAT WE'VE INVESTED SO MUCH IN OUR SA TOMORROW PLAN AND REALLY FORTIFIED THE VALUES WITHIN THOSE NEIGHBORHOOD PLANS IS SOMETHING THAT WE WANT TO MAKE SURE IS PARAMOUNT AS WE CREATE POLICY THAT CAN AFFECT THOSE PLANS.

AND SO THANK YOU FOR HIGHLIGHTING THAT.

I WANT TO THANK YOU, MIKE, FOR ALL YOUR HARD WORK ON THIS, YOU AND YOUR STAFF, THE TASK FORCE, AS YOU MENTIONED AND, OF COURSE -- BE A PART OF THIS, I WANT TO THANK CHRISSY MCCAIN FROM MY OFFICE FOR REALLY, REALLY HANDLE LING THIS IN MY OFFICE.

I WANT TO SHOW YOU THAT GIVEN DISTRICT 1 REALLY SEES THIS -- SIX PAGES OF STRS JUST IN MY OFFICE AND WE HAVE WORKED REALLY HARD TO MAKE SURE WE HAVE MET AND LISTENED TO AS MANY SIDES AS POSSIBLE ON THIS.

WE HEAR ABOUT THIS ALMOST EVERY OTHER DAY.

JUST YESTERDAY I'LL TELL YOU ABOUT A PHONE CALL I RECEIVED ABOUT SOMEONE WHO IS VERY CONCERNED ABOUT THEIR BLOCK, THEIR PARTICULAR CITY BLOCK BEING COMPLETELY TRANSFORMED WITH PEOPLE THAT ARE NO LONGER LIVING ON THAT CITY BLOCK.

AND IT TRANSFORMS A NEIGHBORHOOD, IT TRANSFORMS THE CHARACTER AND FEEL OF THE ABILITY FOR PEOPLE TO KNOW THEIR NEIGHBORS.

AND AT THE HEART OF THIS, THAT'S WHAT A NEIGHBORHOOD IS, IS REALLY GETTING TO KNOW YOUR NEIGHBORS, UNDERSTANDING HOW WE'RE ALL IN THIS TOGETHER AND WORKING TO HELP SAFEGUARD THE CHARACTER AND INTEGRITY OF THOSE NEIGHBORHOODS IS SO IMPORTANT TO A LOT OF OUR CONSTITUENTS.

WE ALSO WANT TO MAINTAIN SOME LEGAL CLARITY, AS YOU MENTIONED, THERE ARE SOME ISSUES REGARDING THE USE OF DESIGN OVERLAYS TO RESTRICT SOME OF THESE CONCERNS, BUT I -- AND I DO WANT TO POINT OUT THAT AT THE SAME TIME, THEY DO PROVIDE THAT ATTRACTION, RIGHT? SO WHILE IT MAY NOT BE NECESSARILY LEGAL, IT DOES CREATE AN INCENTIVE OR A WAY TO ENTICE PEOPLE TO START UP SOME OF THESE IN CERTAIN NEIGHBORHOODS.

DISTRICT 1 HAS NO SHORTAGE OF THOSE.

I ALSO PASSED AROUND SOME AMENDMENTS THAT I WANT TO TALK ABOUT.

EVERY ONE OF MY COUNCIL COLLEAGUES SHOULD HAVE THESE, SO I WANT TO TALK A LITTLE BIT ABOUT THAT BECAUSE I THINK, MIKE, YOU'VE DONE A GOOD JOB OF EXPLAINING SOME OF THE GREAT WORK OF THE TASK FORCE, BUT I DO WANT TO TALK A LITTLE BIT ABOUT SOME OF THE -- SOME ADDITIONAL AMENDMENTS I WANT ALL OF US TO REALLY CONSIDER, AND I WANT TO SPEND SOME TIME WITH MY COLLEAGUES MOVING FORWARD BEFORE WE GET THIS TO COUNCIL VOTE TO REALLY TALK MORE IN DEPTH, IF YOU HAVE ANY QUESTIONS, PLEASE, LET'S TALK SOME MORE ABOUT IT.

LET ME GO THROUGH SOME OF THESE.

SO THERE ARE ESSENTIALLY FOUR PROPOSED AMENDMENTS TO THE ORDINANCE, AND THAT'S THE BED AND BREAKFAST, ADDITION OF BED AND BREAKFAST TO THE CLAUSE CONSIDERING DENSITY TYPE 2 AND I THINK YOU MENTIONED THAT THE PLANNING COMMISSION AGREES WITH THAT.

WE THINK THAT THIS IS AN IMPORTANT ADDITION TO THAT WE WANT TO MAKE SURE THAT THAT AMENDMENT IS PUT IN PLACE.

THE SECOND IS THAT THE DENSITY CLAUSE, AMENDING THE DENSITY MEASUREMENTS FROM LINEAR TO PRO POSITIONAL, AND THIS IS --

[00:40:01]

PROPORTIONAL, THIS IS, I THINK, A VERY GOOD COMPROMISE IN THAT BY GOING TO PROPORTIONAL, WE CAN -- WE DON'T CREATE SOME UNINTENDED CIRCUMSTANCES WHERE WE FORCE SOMETHING TO HAPPEN IN THE MIDDLE OF A BLOCK, BUT RATHER ALLOW THE OPPORTUNITY FOR, YOU KNOW, SOME OF THESE TO BE LOCATED CLOSER TO A CORRIDOR.

AND SO BY GOING TO A PROPORTIONAL SYSTEM, I THINK THIS IS A MUCH BETTER APPROACH AND CERTAINLY HAPPY TO TALK TO MY COLLEAGUES ABOUT THAT.

IT'S -- IT ALLOWS FOR THE SA TOMORROW PLAN TO HELP GUIDE US THROUGH SOME OF THIS AS WELL.

AND, OF COURSE, PERMITS WILL BE AWARDED PER UNIT AND NOT PER PROPERTY, AND THAT'S ALSO VERY IMPORTANT TO US.

THE NEXT IS INCENTIVES.

ADDITION OF LANGUAGE PROHIBITING UNITS WHICH ARE BEING FUNDED WITH CITY-DEVELOPMENT INCENTIVES TO BE USED -- AUDIO] -- THIS IS ESPECIALLY RELATIVE FOR HOUSING INCENTIVE FUNDS, AND OBVIOUSLY WE WANT TO HELP PRESERVE THE HOUSING STOCK THAT WE DO HAVE, AS WE KNOW, WE'RE PUTTING A LOT OF EFFORT BEHIND AFFORDABLE HOUSING AND WOULD LIKE TO ADD THIS PARTICULAR AMENDMENT IN THE ORDINANCE.

AND THEN LASTLY, EVENT USES, ADDITIONAL LANGUAGE THAT PROHIBITS EVENT USES UNDER THE STR ORDINANCE, THIS INCLUDES WEDDING VENUES AND LARGE ENTERTAINMENT OR MEETING SPACES, WHILE THEY'RE ADVERTISED ON THE STR WEBSITES THEY SHOULD BE PROPER ZONED FOR THOSE USES.

OF COURSE, PROPER ZONING WOULD INCLUDE PARKING AND TRAFFIC REQUIREMENTS UNDER THE REQUIRED ZONING AS WELL.

THESE ARE SOME AMENDMENTS I THINK WOULD BE A VERY GOOD ADDITION TO THIS PARTICULAR ORDINANCE, AND AS I MENTIONED, THERE'S NO SHORTAGE OF THIS HAPPENING IN DISTRICT 1.

WE'RE CERTAINLY PROUD OF THE GROWTH AND THE MOMENTUM THAT THE INNER CITY IS SEEING BUT WE WANT TO BE THOUGHTFUL ABOUT PROTECTING OUR NEIGHBORHOODS AND PROTECTING THE CHARACTER THAT IS MAINTAINED BY SIMPLY HAVING A NEIGHBOR, KNOWING YOUR NEIGHBOR AND I THINK WE CAN STRIKE A BALANCE -- THE COMMUNITY, AGAIN, CHRISSY AND YOU, MIKE, FOR HELPING US STRIKE THAT BALANCE.

I LOOK FORWARD TO TALKING TO MY COUNCIL COLLEAGUES ABOUT THESE -- THIS VERY ISSUE, BECAUSE AS YOU CAN SEE, THERE'S A LOT OF FOLKS HERE THAT ARE VERY ENGAGED IN THIS AND I GET A LOT OF CALLS, E-MAILS AND VISITS FROM CONSTITUENTS THAT ARE INCREDIBLY CONCERNED ABOUT THEIR NEIGHBORHOOD AND THE INCREDIBLE CHANGE THAT THIS IS APPLYING TO THOSE NEIGHBORHOODS.

CERTAINLY WANT TO LISTEN TO EVERY SINGLE ONE OF OUR CONSTITUENTS REGARDING WHAT THEIR EXPERIENCING AND THAT EXPERIENCE IS VERY REAL, SO I JUST WANT TO SAY THANK YOU, AGAIN, AND THANK YOU MAYOR FOR THE OPPORTUNITY TO POINT -- OUTLINE SOME OF THESE AMENDMENTS THAT I THINK WOULD BE -- WOULD SERVE US VERY WELL.

LASTLY, I JUST WANT TO SAY, IF WE CAN REMEMBER THAT AT THE HEART OF THIS IS -- IS WHAT WE ALL HAVE BEEN FOLLOWING IN THE COMPREHENSIVE PLANNING AND SA TOMORROW TO HELP PROVIDE A FRAMEWORK IN WHICH WAS ALL STARTED WITH NEIGHBORHOOD PLANS, SO CERTAINLY HOPE WE CAN ALL RESPECT THAT AND HOPE TO HEAR FROM ALL OF YOU SOON.

THANK YOU, MAYOR.

>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN TREVINO.

COUNCILWOMAN VIAGRAN?

>> VIAGRAN: THANK YOU, MAYOR.

THANK YOU, MIKE, ROD, AND FOR EVERYONE FOR ALL OF YOUR WORK AND TO EVERYONE WHO IS ON THE STAKEHOLDER GROUP, I HAVE TO SAY AS THE MAYOR -- AS THE MAYOR SAID, THIS IS OUR FIRST TIME TO REALLY LOOK AT THIS ORDINANCE -- WELL, MYSELF, BECAUSE I HAVEN'T BEEN IN THE MEETINGS -- IN AUDIO] -- YOUR E-MAILS AND YOUR LETTERS BECAUSE I AM SO PROUD OF THE LEVEL OF ENGAGEMENT THAT PEOPLE HAVE TAKEN ON THIS -- IN THIS STR ORDINANCE, BECAUSE I THINK IT'S THAT, THAT WE CAN -- WE'RE WORKING TOGETHER AND HOW WE CAN FIND THIS HAPPY MEDIUM FOR EVERYONE THAT WILL ALSO RESPECT THE CITY AND ALLOW PEOPLE TO DO WHAT THEY WANT AS WELL WITH THEIR PROPERTY THAT THEY OWN.

I DO HAVE SOME QUESTIONS IN PARTICULAR RIGHT NOW, AND THE FIRST ONE IS WITH THE PROCESS AND THE -- HERE WE HAVE THE -- I'M SORRY, IT'S THE STAKEHOLDERS GROUPS RIGHT HERE, THE APARTMENT ASSOCIATION, REAL ESTATE COUNCIL AND THE NEIGHBORHOOD ASSOCIATIONS.

I KNOW I WANT TO ALSO THANK MY NEIGHBORHOOD ASSOCIATIONS, ALL

[00:45:02]

THE STAKEHOLDERS, ROOSEVELT PARK NEIGHBORHOOD ASSOCIATION, THE MISSION SAN JOSE NEIGHBORHOOD ASSOCIATION, EVERYONE'S SENDING ME LETTERS AND E-MAILS BECAUSE -- AND I'VE BEEN SHARING THIS WITH ALL OF MY NEIGHBORHOOD MEETINGS THAT I'VE HAD FOR THIS ENTIRE YEAR, GIVING PEOPLE SOME UPDATES AND I'VE GOTTEN SOME GREAT IDEAS THAT I'M GOING TO SHARE WITH YOU RIGHT NOW.

I THINK WE'RE CLOSE, BUT WE'RE NOT THERE YET, AND I APPRECIATE THE AMENDMENTS THAT COUNCILMAN TREVINO JUST BROUGHT FORWARD, TOO.

FOR THIS, ONE OF THE CONVERSATIONS THAT WE'VE BEEN HAVING, ESPECIALLY AROUND THE AREAS WHERE WE SEE THE VULNERABILITY IN THE HOUSING STOCK AND IN OUR NEIGHBORHOODS, IN PARTICULAR AROUND THE MISSIONS, AND ONE OF THE THINGS THAT WE WANT TO MAKE SURE IS THAT -- ARE WE GOING TO BE CAPTURING ALL THE OPPORTUNITY THAT WE CAN FOR OUR LEGACY HOMEOWNERS AND OUR LEGACY HOMEOWNERS THERE IN AND AROUND THE AREA, AS WELL AS WITH MAYBE SOME OF OUR SENIORS? BECAUSE WE'RE SEEING AN INCREASE IN THEIR APPRAISALS AT THEIR HOMES, BUT IF THERE IS A WAY THAT WE CAN EVEN WORK WITH OUR SENIORS IN AND AROUND THE AREA TO TEACH WHAT STRS ARE TO HELP WITH CATCHING UP WITH THE APPRAISALS AND THE PAYMENTS OF THE APPRAISALS.

BECAUSE WE KNOW THAT WE'RE NOT RAISING OUR TAX RATE BUT THE APPRAISALS ARE GOING UP IN AND AROUND THE AREA.

SO WHERE -- AND IF SO, ONE OF MY -- ONE OF MY MEMBERS OF MY NEIGHBORHOOD, MR. WISAD, AND I TOLD HIM I WAS GOING TO GIVE HIM CREDIT FOR THIS, BECAUSE HE CAME UP WITH AN IDEA IF WE'RE LOOKING FOR THE PERMITTING AND WE HAVE LEGACY HOMEOWNERS WHERE IT IS A HOMESTEAD FOR THEM, AND MAYBE THEY HAVE HOUSES THAT HAVE BEEN IN THE -- IN THEIR HOMES FOR GENERATIONS AND THEY HAVE TWO STORIES BUT THEY'RE NOT USING ALL TWO STORIES, THEY JUST WANT TO USE ONE AND BE A PART OF AN STR, IT WOULD BE A TYPE 1, AN OWNER OCCUPIED, IS THERE A WAY THAT WE CAN DO SOME SORT OF EXEMPTION OF A PERMITTING FEE THERE, OR REDUCE THE PERMITTING FEE, THAT IF WE CAN PROVE THAT IT'S A SENIOR, THAT IT IS A LEGACY HOME, THAT THERE'S A CERTAIN, I GUESS, THRESHOLD OF FINANCES FOR THAT, I THINK THAT WOULD BE SOMETHING THAT I WOULD LIKE TO MAYBE TAKE BACK AND TAKE A LOOK -- ALSO DON'T SEE BNB REPRESENTATIVES HERE IN THIS.

WAS MR. STINSON THE PRESIDENT OF THE BNB PART OF THIS AND HE'S AWARE OF THIS.

>> SHANNON: THEY WERE INVITED TO ATTEND THE MEETINGS AND THEY JUST CHOSE NOT TO.

>> VIAGRAN: OKAY.

>> SHANNON: WE REACHED OUT TO THEM SEVERAL TIMES, SENT THEM INFORMATION, TOLD THEM WHERE ALL THE INFORMATION IS, THROUGHOUT THE PROCESS, BEGINNING, MIDDLE AND END.

>> VIAGRAN: SO I'M SURE THEY'RE GOING TO --

>> SHANNON: BECAUSE WE DIDN'T COMBINE THE ORDINANCES.

I DON'T KNOW EXACTLY WHY THEY DIDN'T ATTEND, THE D & B ORDINANCE, HOW IT'S DIFFERENT, HOW THIS WILL AFFECT IT, SHOULD WE MERGE THEM TOGETHER.

>> VIAGRAN: SO NOW I THINK IT'S AN OPPORTUNITY TO REENGAGE WITH THEM AND LET THEM KNOW THAT.

>> SHANNON: SURE.

>> VIAGRAN: THAT IF WE'RE LOOKING AT MERGING OR WE'RE LOOKING AT BOTH OF THEM, THAT THEY NEED TO BE ENGAGED, A PART OF THIS, BECAUSE IF THEY DON'T, THEN WE WON'T HAVE THAT OPPORTUNITY -- WE WON'T HAVE THAT OPPORTUNITY THERE.

>> SHANNON: AND I WILL ADD, THOUGH, WE DID HAVE, YOU KNOW, ONE OR MORE B & B OWNERS OR OPERATORS ATTEND SOME OF THE MEETING.

>> VIAGRAN: SURE, SURE.

>> SHANNON: AND SPEAK TO SEVERAL OF THE PROPOSALS SO THERE WAS SOME INVOLVEMENT.

>> VIAGRAN: OKAY.

SO FOR SLIDE NO. 8, HERE CODE AND ORDINANCES AND OTHER CITIES.

SO HOUSTON HAS NOTHING?

>> SHANNON: SORRY.

I'M GOING TO GET THERE, I PROMISE.

>> VIAGRAN: THEY JUST USE THE B & B AND HOTEL REGULATIONS.

>> SHANNON: YES.

SO RIGHT NOW THEY DON'T HAVE A SHORT-TERM RENTAL REGULATION ORDINANCE.

THEY CHOSE TO USE B & B REGULATIONS AND HOTELS AND CLASSIFY THESE AS A B AND B AND/OR HOTEL.

SO SOME OF THE JURISDICTIONS THAT WE FOUND SAID, HEY, DON'T CREATE SOMETHING NEW, JUST CALL THEM, HEY, IT'S MORE OF A COMMERCIAL HOTEL OR A B & B, USE AN EXISTING ORDINANCE, SO HOUSTON IS ONE OF THOSE.

>> VIAGRAN: AND SO ARE THEY COLLECTING HOT REVENUE? DO THEY KNOW HOW MANY?

>> SHANNON: I DON'T KNOW THAT ANSWER OFF THE TOP OF MY HEAD.

BUT I KNOW HOUSTON COLLECTS HOT REVENUE.

>> VIAGRAN: WELL, YEAH.

>> SHANNON: WHETHER IT'S SPECIFIC TO THAT, WE'D HAVE TO FOLLOW UP ON THAT.

>> VIAGRAN: I KNOW I'VE MENTIONED THIS BEFORE IN ANOTHER CAPACITY, BUT I THINK WHAT'S IMPORTANT, TOO, MAYOR, IS THE INPUT -- HAS THIS BEEN DISCUSSED WITH THE MAYOR'S HOUSING TASK FORCE, TOO, AND IF THEY'RE TAKEN INTO ACCOUNT? BECAUSE WE'VE GOTTEN SOME GREAT DATA.

I TELL YOU THE RESEARCH THAT WE'VE RECEIVED FROM PEOPLE OUT IN THE COMMUNITY HAS BEEN INCREDIBLE ABOUT THE SHORTAGE OF HOUSING STOCK THAT COULD BE CREATED WITH THE STRS OR WITH PROLIFERATION OF STRS.

AND YOU ALSO TALKED ABOUT THE

[00:50:01]

SAFETY AND THE IMPACTS -- PROPERTY VALUES AND SAFETY.

SO HOW MANY DO YOU HAVE RIGHT NOW REGISTERED WITH THE CITY?

>> SHANNON: AS OF LAST WEEK, THE NUMBER WAS APPROXIMATELY 290 THAT WE KNOW OF THAT ARE PAYING THE HOT TAX.

>> VIAGRAN: YEAH, IT'S DEFINITELY INCREASED SINCE THE FIRST TIME WE TALKED ABOUT IT AND SAID -- TALKED ABOUT GRANDFATHERING, SO IT LOOKS LIKE EVERYBODY'S BEEN SIGNING UP FOR THAT, WHICH IS FINE.

I MEAN, WHICH IS GOOD, BUT THEN, YOU KNOW, AIRBNB ALSO SENT US INFORMATION THAT SAID THE AIRBNB COMMUNITY IN SAN ANTONIO IN 2017 HAS 1300 HOSTS.

>> SHANNON: UH-HUH.

>> VIAGRAN: SO TO KNOW THAT WE'RE COLLECTING 290 WITH THE HOT TAX, BUT THERE ARE 1300 HOSTS IN THE CITY LAST YEAR IN 2017, SO I THINK THAT'S -- THERE'S A BIG GAP THERE.

WE'RE MISSING A BIG GAP RIGHT THERE.

>> SHANNON: ABSOLUTELY.

AND THAT WAS DISCUSSED AT LENGTH, WHICH CLEARLY AN ORDINANCE THANKS THAT WOULD REQUIRE -- ORDINANCE THAT WOULD REQUIRE SOME SORT OF REGISTRATION OR PERMITTING AND VERIFICATION OF HOT PAYMENT OR HOT REGISTRATION AND COLLECTION OF THE HOT TAXES, THIS WOULD INCREASE OUR COMPLIANCE RATE WITH THAT, I THINK BOTH CERTAINLY DSD, THE FINANCE DEPARTMENT, EVERYBODY AGREES THAT THIS WOULD CLEARLY INCREASE OUR COMPLIANCE RATE WITH THAT.

>> VIAGRAN: SO THESE FEES THAT ARE WITH THE DIFFERENT CITIES, ARE THOSE AN ANNUAL BASIS OR DO THEY VARY.

>> SHANNON: THEY VARY.

IT'S ALL OVER.

I'VE TRIED TO SUMMARIZE SOME OF THEM, ANNUAL, EVERY TWO YEARS, SO IT'S... WE DIDN'T FIND TOO MANY THAT WERE CONSISTENT THROUGHOUT.

>> VIAGRAN: OKAY.

ALL RIGHT.

AND SO YOU'RE SAYING -- ONE OF THE THINGS ALSO THAT WE RECEIVED IS THE PERMITTING PROCESS, AND I THINK THAT'S SOMETHING THAT COUNCILMAN TREVINO PUT FORWARD, TOO, WITH MORE OF AN EASE OF PERMITTING, BECAUSE YOU'RE ASKING EVERYBODY TO COME DOWN TO DSD TO DO THE PERMITTING? IS THERE SOME WAY THAT WE COULD DO IT MORE EFFICIENTLY, IF IT IS THAT -- I THINK YOU HAD THE OPTION THERE WITH SELF-CERTIFICATION, TOO?

>> SHANNON: YEAH, I MEAN, OVERALL, AND, YOU KNOW, I THINK WE HAVE I.T. HERE, KEVIN GOOD WIN, SO CLEARLY WE'VE ALREADY STARTED THAT DISCUSSION AS TO WE REALLY DON'T WANT EVERYBODY TO HAVE TO PHYSICALLY WALK DOWN TO OUR BUILDING, NOT JUST WITH SHORT-TERM RENTAL, BUT WITH BUILDING SYSTEMS SO PEOPLE CAN ONLINE APPLY FOR PERMITS OR APPS OR WHATEVER IT IS, SO WE ANTICIPATE THAT WHATEVER WE DECIDE TO DO, WE WILL CERTAINLY BUILD VERY QUICKLY SOME SORT OF ONLINE PERMITTING TO MAKE IT EASY FOR -- IF YOU THINK ABOUT IT, THIS WORLD -- AUDIO] -- SIMPLE.

GO ON, LOOK IT, CLICK IT, BOOK THE NIGHT, PAY THE FEE, AND YOU'RE DONE.

WE WANT TO BUILD THE CITY SYSTEM THAT'S VERY SIMILAR TO THAT, AND NOT ONLY IN THE INTERIM, BUT, YOU KNOW, WE'RE WORKING ON OUR BUILD SA PRODUCT IN DSD WHICH IS GOING TO TAKE ALL OF OUR PERMIT APPLICATIONS TO THAT EVENTUALLY IN THE NEXT COUPLE OF YEARS.

SO, AGAIN, YEAH, WE WANT IT TO BE R VERY STREAMLINED AND EASY FOR ANYBODY TO COME DOWN AND PERMIT WITH US THROUGH THIS.

>> VIAGRAN: OKAY.

PART OF -- SLIDE NUMBER 14, AND I THINK YOU'RE GOING TO HAVE TO EXPLAIN THIS TO ME AGAIN, BECAUSE THIS IS THE FIRST TIME I'M REALLY DIGGING INTO THIS.

>> SHANNON: SURE.

>> VIAGRAN: THE SPECIAL EXCEPTION FOR TYPE 2 IN RESIDENTIAL AREAS FOR THE PERMIT APPLICATION.

>> SHANNON: ALL RIGHT.

>> VIAGRAN: THAT'S SLIDE 14.

>> SHANNON: I KNOW.

I'M GOING TO GET THERE.

I PROMISE.

ROD WILL HELP ME.

>> VIAGRAN: OR MAYBE YOU CAN ANSWER THIS ONE AS YOU'RE GETTING THERE, THE PROPOSED ORDINANCE, WHERE YOU'RE TALKING ABOUT THE DENSITY AND THE PARKING, ONE PARKING SPACE PER STR UNIT, IS THAT JUST TYPE 2, OR IS THAT ALSO TYPE 1?

>> SHANNON: ON THE DENSITY.

>> VIAGRAN: YEAH.

>> SHANNON: THE PROPOSAL RIGHT NOW IN THE PROPOSED ORDINANCE IS TYPE 2S AND BSBS, WE WOULD REGULATE THE DENSITY OF THOSE IN THE NEIGHBORHOOD.

TYPE 1S WOULD NOT BE COUNTED IN THE DENSITY MEASUREMENTS.

>> VIAGRAN: OKAY.

>> SHANNON: I'D HAVE TO CHECK WITH COUNCILMAN TREVINO, I KNOW NOT THE LINEAR ONE, THE PROPOSALS, YOURS IS TALKING ABOUT UNITS AND WE WOULD HAVE TO DETERMINE THAT.

>> VIAGRAN: OKAY.

SO THE SPECIAL EXCEPTION FOR TYPE 2 IN RESIDENTIAL AREAS.

>> SHANNON: SURE.

SO THE BOARD OF ADJUSTMENT ALREADY HAS A PROCESS FOR SPECIAL EXEMPTIONS WHERE THERE ARE -- IT'S NOT REZONING BUT IT'S GRANTING AUTHORITY TO DO SOMETHING THAT'S NOT ALLOWED BY RIGHT IN A PARTICULAR ZONE.

SO THE PROCESS WOULD BE IF YOU'RE A TYPE 2 AND YOU'RE NOT LEGALLY NONCONFORMING TODAY, SO YOU'RE GOING TO START ONE AFTER WE DO THE ORDINANCE, YOU WOULD APPLY TO THE CITY SAYING I WANT TO DO A TYPE 2 NONOWNER OCCUPIED, IT'S NOT MY HOMESTEAD.

I WANT TO START THAT UP IN -- IT'S ALREADY IN THE RESIDENTIAL NEIGHBORHOOD, IT'S AN R ZONE OR AN MF ZONE OR SOMETHING TO THAT EFFECT, SO IT'S A RESIDENTIAL ZONING DISTRICT, YOU WOULD APPLY TO THE BOA AND YOU WOULD STATE WOULD STILL BE ABLE TO MAINTAIN THE CHARACTER OF THE NEIGHBORHOOD WITH ALL THE FACTORS, AND THE BOA WOULD RULE ON THAT.

THEY WOULD EITHER GRANT THE

[00:55:01]

SPECIAL EXCEPTION OR NOT.

IT IS A SUPER MAJORITY NEEDS THROUGH BOA, LIKE EVERY BOA CASE, AND THEN IF YOU WERE GRANTED IT, IT'S A PUBLIC OPEN PROCESS, SO THERE WOULD BE -- THE NEIGHBORS WOULD ALL BE NOTIFIED JUST LIKE A VARIANCE REQUEST OF BOA OR ANYTHING LIKE THAT.

THERE WOULD BE TESTIMONY FOR OR AGAINST, IF YOU WERE TO GET IT, WE COULD ISSUE YOU A SHORT-TERM RENTAL PERMIT FOR UP TO THREE YEARS, OR IF YOU SELL IT TO SOMEONE ELSE, THAT PERMIT'S NOT TRANSFERABLE, THEY'D HAVE TO GO THROUGH THE SAME PROCESS.

AND THEN THERE'S LANGUAGE IN THE PROPOSED ORDINANCE CHANGES THAT INCLUDED DIRECTION TO THE BOA AS TO WHY OR HOW THEY COULD APPROVE THAT BOA SPECIAL EXCEPTION.

THEY CAN'T JUST SAY, WELL, I LIKE COUNCILWOMAN VIAGRAN, SHE'S REALLY NICE, I WANT TO GIVE IT TO HER.

WE ALL KNOW THAT'S TRUE, BUT -- OR I DON'T LIKE -- I'LL SAY ROD, I DON'T LIKE ROD BECAUSE HE'S REALLY MEAN.

[LAUGHTER]

>> SHANNON: OKAY.

YOU CAN SAY THAT, IT'S YOUR BIRTHDAY.

SO -- BUT I WON'T GIVE IT TO HIM.

THERE ARE FINDINGS OF FACT JUST LIKE WE HAVE WITH ALL OF OUR CASES.

>> VIAGRAN: SURE.

>> SHANNON: THAT'S THE PROPOSED PROCESS.

I THINK THE MAIN ISSUE THERE IS THAT IT'S ON YOU, THE OWNER, TO HAVE GOOD CONTROL OF YOUR SHORT-TERM RENTAL SO THAT IT DOESN'T BECOME A PUBLIC NUISANCE TO THE NEIGHBORHOOD AND YOU HAVE TO DEMONSTRATE HOW YOU'RE GOING TO DO THAT, AND THEN YOU HAVE TO MAINTAIN THAT, BECAUSE YOU'RE GOING TO BE BACK IN FRONT OF THE BOA IN UP TO THREE YEARS.

>> VIAGRAN: SO ARE -- IF THAT WERE TO MOVE FORWARD, ARE WE GOING TO HAVE LIKE A VALVE ON THAT, SAY THAT EVERYONE STARTS JUST A FLOOD OF PEOPLE START COMING TO BOA FOR THESE EXCEPTIONS?

>> SHANNON: YEAH, CERTAINLY IT'S A WORKLOAD ISSUE FOR US, RIGHT, BECAUSE WE HAVE TO ANTICIPATE HOW MANY THAT COULD BE.

>> VIAGRAN: RIGHT.

>> SHANNON: WE'VE USED SOME ESTIMATES IN WORKING WITH NOT ONLY MY CURRENT BOA TEAM THAT HANDLES THOSE CASES, THAT'S ONE OF THE REASONS WE WOULD NEED ADDITIONAL STAFF TO COVER THAT, RIGHT, THAT PROCESS, AND ALSO TO OUR BOA.

THEY -- THEY WOULD SEE MORE CASES.

WE BELIEVE IT'S DOABLE WITH AN ADDITIONAL STAFF MEMBER UTILIZING WHETHER IT'S BE A CONSENT AGENDAS IF THERE'S REALLY NO OPPOSITION OR THOSE TYPE OF THINGS.

SO WE THINK IT'S DOABLE, EVEN THOUGH IT'S A LIFT.

>> VIAGRAN: BUT THEN -- I MEAN, I GET THAT PART, I THINK IT'S DOABLE TO GO THROUGH, BUT THEN WE HAVE AN OVERAT TOUR RAITION OF TYPE 2S IN THE NEIGHBORHOOD BECAUSE THEY'RE ALL GETTING EXEMPTIONS.

>> SHANNON: WELL, IT ALL DEPENDS ON THE DECISIONS OF THE BOA.

CERTAINLY THE BOA DECISIONS ARE BASED ON FINDING OF FACT, THEY'RE SUPER MAJORITYIES.

>> VIAGRAN: SURE.

>> SHANNON: THEY'RE GOING TO LOOK AT -- IF YOU'RE THE FIFTH STR ON THAT BLOCK, SHOULD WE REALLY BE GRANTING THAT SPECIAL EXCEPTION OR NOT? AGAIN, THIS WOULD BE OUR FIRST TIME DOING IT, SO WE'VE TRIED TO ANTICIPATE A LOT OF THAT, BUT THOSE ARE THE GOOD QUESTIONS, I THINK, THAT WE EVEN DISCUSSED WITH THE BOA.

>> VIAGRAN: RIGHT.

AND IT IS JUDICIAL, AND SO WE WOULD HAVE NO -- THE CITY WOULD NO HAVE RECOURSE ON THAT EITHER.

>> SHANNON: CORRECT, IT'S NOT LIKE ZONING WHERE IT WOULD BE A RECOMMENDATION TO TO YOU ALL THROUGH THE ZONING PROCESS.

THAT DECISION WOULD BE LEGAL, GIVE THEM A PERMIT THROUGH DSD IF THEY MEET ALL THE OTHER STUFF AS WELL.

>> VIAGRAN: SO THOSE ARE SOME OF MY CONCERNS, TOO, IN THAT I WOULD HAVE CONCERNS ON THAT WITH THE EXCEPTIONS THAT WE MOVE FORWARD WITH.

AND, AGAIN, FOR SLIDE NUMBER 15 WITH THE APPLICATION FEES, I DO WANT TO TRY AND LOOK AT MORE TO SEE WHAT THOSE HOMESTEADS OR THOSE WITH LEGACY HOMES AND SENIORS, IF THEY'RE TRYING TO GET IN ON THE GAME OF THE STRS, WHAT CAN WE DO TO HELP MITIGATE THE REGISTRATION FEES AS WELL IN THAT AREA.

>> SHANNON: SURE.

>> VIAGRAN: AND THEN I THINK -- I DID HAVE -- SO ON SLIDE NUMBER 18, SO WE HAVE THE HOT FUND -- SO ALL OF THESE, IF AIRBNB IS REPORTING THAT THEY HAVE, WHAT IS THE NUMBER THAT THEY HAD? 1300 HOSTS IN SAN ANTONIO IN 2017 AND 15.1 MILLION TOTAL HOSTS EARNINGS, SO IS THAT MONEY THEN -- IF THEY'RE -- DOES THAT MONEY FROM THE AIRBNB, IS AIRBNB COLLECTING HOT TAX TO GIVE TO THE CITY.

>> SHANNON: NO.

>> VIAGRAN: OR TO THE STATE OR WHAT.

>> SHANNON: TO THE STATE, THEY ARE.

AIRBNB IS ONE OF THE PLATFORMS. THE OTHER LARGE ONES VMBO, HOME AWAY, THERE'S A MULTITUDE OF OTHERS.

THOSE ARE THE MOST POPULAR ONES.

AIRBNB, ACTUALLY, I THINK IT WAS A YEAR, MAYBE TWO YEARS AGO, THEY ENTERED INTO AN AGREEMENT WHERE IF YOU USE AIRBNB TO BOOK YOUR ROOM, THEY'LL COLLECT THE

[01:00:02]

FEES, A PORTION OF THAT WILL AUTOMATICALLY BE SENT TO THE STATE TO COVER THEIR PORTION OF THE HOT, THEY DO NOT HAVE THAT AGREEMENT WITH THE CITY RIGHT NOW, BUT OTHER PLATFORMS DO NOT.

MEANING THE OWNER COLLECTS THE MONEY AND THEY'RE REQUIRED TO PAY TAXES.

>> VIAGRAN: SO THE STATE IS GETTING ALL THIS HOT TAX BUT THE CITY'S NOT.

>> SHANNON: NO, NO, NO, I'M SORRY.

AIRBNB IS TRANSMITTING THEIR PORTION OF THE TAX, THEIR -- I'D HAVE -- 6%, SO AS AN OWNER, IF I OWNED THE SHORT-TERM RENTAL, I OWE 16-POINT 7% TOTAL.

BUT 6% GOES TO THE STATE -- REALLY 9% GOES TO THE STATE, SEVEN TO THE CITY, 2 TO THE CONVENTION, RIGHT? BUT AIRBNB IS TAKING THE 6% STATE AND AUTOMATICALLY GIVING IT TO THEM AND THAT'S AN AGREEMENT THEY'VE HAD.

SO CERTAINLY IF WE WANTED TO LOOK AT THOSE AVENUES AS A CITY, I DON'T BELIEVE THERE'S -- LAST WE LOOKED AT, I DON'T THINK THERE WAS ANY TEXAS CITIES THAT HAD THAT THING, THAT AGREEMENT, BUT OTHERS DO.

WE CAN LOOK TOWARDS THAT.

>> VIAGRAN: OKAY.

I'M -- THE 7%, SO IS THE CITY COLLECTING ANY OF THAT, THE HOT TAX THEN?

>> SHANNON: YES.

THERE ARE ACTUALLY, AGAIN, APPROXIMATELY -- I THINK LAST WEEK WE HAD 290 IN OUR SYSTEM IN SAN ANTONIO THAT ARE ALREADY REGISTERED WITH TROY AND HIS GROUP IN FINANCE.

>> VIAGRAN: OKAY, OKAY, I GOT THAT.

SO THIS 1300 THAT AIRBNB COLLECTED IN 2017, THAT MONEY THAT'S NOT NECESSARILY ALL REGISTERED WITH THE CITY, SO WHO IS -- WHERE IS THAT HOT TAX MONEY GOING?

>> SHANNON: THEY'RE NOT PAYING THEIR TAXES, IS BASICALLY WHAT THE ANSWER IS.

>> VIAGRAN: ALL RIGHT.

>> SHANNON: IF YOU USE THAT NUMBER, AIRBNB SAYS IT'S 1300, BUT WE ONLY HAVE APPROXIMATELY 300, SO THERE'S 1,000 OF THOSE SHORT-TERM RENTALS, IF WE USE THOSE NUMBERS, THAT AREN'T PAYING OUR CITY TAXES.

>> VIAGRAN: IF WE'RE USING THOSE NUMBERS, THEY'RE NOT PAYING THE CITY'S TAXES, BUT ARE THEY PAYING THE STATE TAXES.

>> SHANNON: BASED ON AIRBNB'S DATA, BECAUSE THEY COLLECT IT AUTOMATICALLY FOR THE OWNERS AND THEY DISTRIBUTE IT.

>> VIAGRAN: OKAY.

THAT'S JUST WHAT I NEEDED CLARIFICATION ON.

SO IN YOUR ESTIMATED PROGRAM COST RIGHT HERE, YOU'RE SAYING THAT IF WE WERE TO COLLECT THIS MONEY, THE FINANCE WERE TO COLLECT ALL OF IT, THEN ALL OF THE MONEY THAT WE RECEIVE FROM HOT WOULD JUST GO STRAIGHT TO EXPENDITURES?

>> SHANNON: WELL, WE ARE ESTIMATING HOW MANY -- YOU KNOW, BECAUSE WE'RE USING A NUMBER OF UPWARDS OF 2,000 SHORT-TERM RENTALS IN OUR CITY -- AUDIO] -- WE'RE GOING TO PLAN FOR FOR THAT.

THAT MONEY THAT WE ARE ESTIMATING -- BECAUSE IT'S ACTUALLY BASED ON -- THERE'S NOT A FIXED FEE ON HOW MUCH TAX YOU OWE, IT'S HOW MANY NIGHTS YOU RENT, HOW MUCH MONEY YOU TAKE AND IT'S A PERCENTAGE OF THAT.

SO WE HAVE ESTIMATED THAT THE HOT REVENUE THAT WILL COME IN BASED ON THIS PROGRAM WILL COVER WHAT TROY AND HIS STAFF NEED FOR COMPLIANCE, AND THAT MONEY IS HOT TAXED THAT IS ALLOWED TO BE USED FOR COMPLIANCE, RIGHT? SO YOU HAVE A COMPLIANCE OFFICER, AN ANALYST AND EVEN OUTSOURCE SOME OF THE HOW DO WE FIND THESE.

SO THAT ESTIMATE IS ABOUT NET NEUTRAL.

>> VIAGRAN: OKAY.

SOME OF THE OTHER POINTS THAT I WANTED TO MAKE FROM MY NEIGHBORHOOD ASSOCIATION THAT THEY WERE SHARING SOME RECOMMENDATIONS IS ONE THAT I THINK IS REALLY IMPORTANT LOOKING AT THE PERMIT APPLICATION AND FOR THE TYPE 1S.

THIS IS TO RECOMMEND USING LOOKING AT USING A HOMESTEAD EXEMPTION CLASSIFICATION TO HELP BETTER DEFINE STR ONES LOOKING AT THAT OR IF Y'ALL ALREADY DID.

>> SHANNON: WE DID.

>> VIAGRAN: OKAY.

AND THEN ALSO RECOMMENDING THAT ST R-1S BE EXEMPT FROM SUBMITTING FLOOR PLANS.

THE FLOOR PLAN OF THEIR HOUSES ON PUBLIC DOMAINS SO THEY COULD -- AS PUBLIC RECORD.

THEY WERE CONCERNED I ALSO HAVE QUESTIONS ABOUT IS THE MULTI-FAMILY UNITS, APARTMENTS AND IF THEY ARE OWNER OCCUPIED OR NOT.

WHAT IS THE STATUS ON THE MULTI-FAMILY UNIT AND STR ONES?

>> CERTAINLY IF YOU OWN IT AND LIVE THERE NORMALLY BUT YOU'RE GOING TO RENT IT OUT -- I'M SORRY, IF IT'S NOT YOUR HOMESTEAD, IT'S NOT A TYPE ONE.

WITH MULTI-FAMILY YOU'RE LOOKING AT EITHER A TYPE TWO, UNLESS YOU'RE MAYBE A CONDO UNIT.

THE NEXT QUESTION IS CONDO MULTI-FAMILY WHERE YOU

[01:05:02]

PHYSICALLY OWN YOUR SPACE.

THAT COULD BE YOUR HOMESTEAD, IF YOU WILL, BUT THOSE HELP DEFINE IF IT'S TYPE ONE OR TWO AND WHERE THEY WILL BE ALLOWED OR NOT.

BUT IF YOU'RE IN AN APARTMENT COMPLEX OR MULTI-FAMILY COMPLEX, YOU HAVE HAD SOME MULTIPLE UNIT DESIGNATIONS BUT OUR ORDINANCES DOES COVER THAT.

BECAUSE APARTMENTS, PROBABLY NOT YOUR HOMESTEAD, YOU ARE CONSIDERED A TYPE TWO AND YOU HAVE TO GO THROUGH THAT PROCESS.

CONDOS, THOUGH, BECAUSE YOU OWN IT, IT COULD BE YOUR HOMESTEAD, THAT COULD BE A TYPE ONE, IF THAT'S WHAT THEY WANT TO DO.

>> VIAGRAN: SO ANOTHER QUESTION WAS PROPERTIES MANAGED BY STR BROKERS WHO LONG-TERM RENT FROM A HOMEOWNER AND OPERATE THE PROPERTY AS A FULL TIME SHORT-TERM RENTAL, ARE Y'ALL WORKING ON THAT WITH THESE PROPERTY MANAGEMENT GROUPS? HAVE Y'ALL LOOKED AT THAT IN THE ORDINANCE?

>> I DON'T THINK WE HAVE LOOKED AT ANY PROPERTY MANAGEMENT GROUPS SPECIFICALLY, BUT OUR ORDINANCE ALLOWS FOR -- IT'S KIND OF LIKE COMING IN SUBLEASING.

IF THAT'S ALLOWED BY THE OWNER AND THE ORIGINAL TENANT, THE FIRST LESSEE, I GUESS, OUR ORDINANCE ALLOWS THAT.

I GUESS I WOULD HAVE TO LOOK TO SEE WHERE THAT FALLS UNDER THE DEFINITION.

IS THAT TYPE TWO? THAT WOULD BE TYPE TWO IN OUR CURRENT PROPOSED ORDINANCE.

>> VIAGRAN: AND I THINK PART OF THE CONCERNS ALSO TALKED ABOUT THE MULTI-FAMILY PROPERTIES AND THE ALLOWABLE NUMBERS OF TYPE TWO UNITS PER LOT TO CONTINUE TO TAKE A LOOK AT THAT TOGETHER HERE.

AND THEN SOMETHING THAT -- BECAUSE AT THE BEGINNING AND THE END OF THE DAY WE ARE TRYING TO PROTECT OUR HOUSING STOCK IN OUR NEIGHBORHOODS BECAUSE WE KNOW THAT WE NEED AFFORDABLE HOUSING.

WE NEED JUST HOUSING STOCK TOO IN OUR COMMUNITIES.

AND WE NEED TO MAKE SURE THAT THE CHARACTER AND THE IDENTITY OF THE NEIGHBORHOODS CAN BE MAINTAINED.

AND SO I THINK THAT'S VERY, VERY IMPORTANT.

AND ESPECIALLY IN MY AREA THAT ARE VULNERABLE, THAT ARE CONTINUING TO SEE THE SHIFT.

IT'S GREAT WHEN WE SEE SOME OF THE OLD ABANDONED HOUSES THAT ARE BEING FLIPPED BUT WE ALSO NEED TO MAKE SURE THAT WE'RE NOT GOING TO CREATE ANOTHER GENERE ECONOMIC SEGREGATION THAT'S GOING TO BE EXISTING IN OUR COMMUNITY.

THAT'S WHERE I WANT TO MAKE SURE THAT WE GET THIS RIGHT.

AND I WOULD LIKE TO GET IT DONE EVEN BEFORE THE LEGISLATIVE SESSION BECAUSE I KNOW WE'RE ALREADY GOING TO HAVE A TARGET ON OUR BACKS FOR THE LEGISLATIVE SESSION ON THIS ITEM TOO.

SO I KNOW EVERYBODY WANTS TO AND THEY HAVE AN EXTRA ROOM OR AN EXTRA FLOOR THAT THEY WANT TO USE, I GET THAT.

I COMPLETELY UNDERSTAND THAT.

BUT I THINK WE'RE ALMOST THERE, SO THANK YOU FOR ALL OF YOUR WORK.

I REALLY APPRECIATE IT.

THANK YOU, MAYOR.

>> MAYOR NIRENBERG: THANK YOU, COUNCILWOMAN VIAGRAN.

COUNCILMAN PELAEZ.

>> PELAEZ: THANK YOU.

I WORRY ABOUT US GETTING INVOLVED IN PEOPLE'S PROPERTY RIGHTS, AND I THINK THERE'S A LOT OF FOLKS WHO ARE WORRIED TOO, RIGHT, THAT WE'RE GETTING INTO POSSIBLY REGULATING THIS NEW THING THAT JUST DIDN'T EXIST BEFORE AND USING OUR OLD TOOLS -- I MEAN, THE OLD BLUNT FORCE TOOL OF REGULATION TO SOLVE SOMETHING.

SO I'M LOOKING AT YOUR SLIDES.

CAN YOU MOVE IT TO SLIDE 7, PLEASE? I'M HEARING THAT ONE OF THE MOST COMMON COMPLAINTS IS THAT THESE STRS MIGHT NEGATIVELY IMPACT PROPERTY VALUES AND NEIGHBORS.

YOU HAVE FOUND NO EVIDENCE OF THAT, RIGHT? YOU FOUND THE OPPOSITE TO BE TRUE?

>> YEAH, THE STUDIES I REFERENCED HERE, WHEN WE DO THE DATA RESEARCH, INDICATE THAT IT'S NOT PROPERTY VALUES GOING DOWN, IT IS THEY ARE MAINTAINED OR SLIGHTLY GOING UP.

BUT IT'S STILL A RELATIVELY NEW PHENOMENON, IF YOU WILL, NOT A LOT OF STUDIES OUT THERE.

>> PELAEZ: SO THE OTHER WAY TO PUT THAT IS YOU HAVE DATA TO SHOW US THAT WE NEED TO SOLVE FOR DECREASING PROPERTY VALUES?

>> THAT IS CORRECT.

>> PELAEZ: AND YOU HAVE ABSOLUTELY NO DATA TO SUGGEST THAT STRS INCREASE SAFETY PROBLEMS, RIGHT?

>> WELL, I THINK WE HAVE SOME ISOLATED STRS THAT YOU COULD SAY THEY HAD SOME ISSUES OR SOME SAFETY CODE ISSUES, NUISANCE ISSUES.

BUT THE DATA SUGGESTS NO MEASURABLE DIFFERENCE.

WE HAVE SOME OF THAT IN REGULAR NEIGHBORHOODS THAT ARE REGULAR TENANTS OR HOMEOWNER OCCUPIED.

>> PELAEZ: NO MEASURABLE

[01:10:01]

DIFFERENCE IS THREE FANCY WORDS FOR I HAVE NO DATA, RIGHT?

>> WELL, I HAVE DATA.

>> PELAEZ: I HAVEN'T SEEN IT.

>> THE DATA TELLS ME THERE'S NO MEASURABLE DIFFERENCE.

>> PELAEZ: GOT IT.

YOU KNOW, I HAVE HEARD TWO OF MY COLLEAGUES TODAY INVOKE THE S.A.

TOMORROW PLAN AND MENTIONING THE INTEGRITY OF NEIGHBORHOODS.

SO I WENT AHEAD AND PULLED THE 330-PAGE PLAN AND LOOKED FOR THE WORDS INTEGRITY OF NEIGHBORHOODS IN IT.

IT ONLY APPEARS ONCE.

I'M GOING TO READ TO YOU WHERE IT APPEARS.

LET'S MAKE SURE WE ARE ON THE SAME PAGE.

IT APPEARS ONE TIME AS ONE OF THE CORE PRINCIPLES.

IT SAYS THAT THE GOAL IS TO MAINTAIN THE CHARACTER AND INTEGRITY OF EXISTING NEIGHBORHOODS, PARKS, OPEN SPACES, AND TRAILS.

THEN IT SAYS HOW? BY FOCUSING GROWTH IN MIXED USE ANYWHERE ELSE IN THE S.A.

TOMORROW PLAN SEEN ANY MENTION OF STRS OR INTEGRITY OF NEIGHBORHOODS MENTIONED IN CONNECTION WITH TO WHOM WE SHOULD OR SHOULDN'T RENT PROPERTIES OR HOW LONG THOSE PROPERTIES SHOULD BE RENTED?

>> NO.

>> PELAEZ: ME NEITHER.

I LOOKED TOO, MIKE.

THE OTHER TIME I LOOKED IN THERE IN THE SUPPORTING DOCUMENTS FOR S.A. TOMORROW, THERE WAS THE WORD INTEGRITY USED ONE MORE TIME.

AND THAT WAS DURING A SEPTEMBER 12TH MEETING THAT THE PLANNING DEPARTMENT PUT ON WHERE YOU GUYS DISCUSSED THE DOWNTOWN REGIONAL CENTER PLAN AND THE WORD INTEGRITY CAME UP WHEN THE GROUP, THE FIVE DIFFERENT FOCUS GROUPS, DECIDED TO KEEP ENVIRONMENTAL INTEGRITY AS ONE OF THE POLICY DRIVERS BEHIND THE DOWNTOWN REGIONAL PLAN.

BUT NOT ONCE DID THEY EVER SAY OR HAS ANYBODY EVER SAID, YOU KNOW, INTEGRITY OF NEIGHBORHOODS WITH REGARDS TO THE S.A.

TOMORROW PLAN, UNTIL TODAY.

TODAY WAS THE FIRST TIME I HEARD BOTH OF THOSE THINGS BEING BROUGHT TOGETHER.

NOW THAT WE HAVE ESTABLISHED THAT YOU HAVE NO DATA TO PROVE THAT THERE'S PROPERTY DAMAGE -- I'M SORRY.

PROPERTY VALUE NEGATIVE IMPACTS OR SUPPORT THE ARGUMENT THAT SOMEHOW STRS IMPERIL A NEIGHBORHOOD SAFETY, AND WHY IS IT THAT I'M SITTING HERE AND WHY IS IT WE HAVE DEDICATED HUNDREDS OF HOURS TO COME UP WITH REGULATIONS? I HAVE HEARD OTHER ARGUMENTS, WELL, WE HAVE NOISE ISSUES OR PARKING ISSUES.

MIKE, WE HAVE ORDINANCES FOR THAT ALREADY IN THE BOOKS, RIGHT?

>> CORRECT.

>> PELAEZ: HOW MANY COMPLAINTS HAVE YOU RECEIVED TO DATE ON STRS THAT HAVE NOTHING TO DO WITH NOISE OR PARKING?

>> I WOULD HAVE TO LOOK.

I DON'T KNOW IF I HAVE THAT.

>> PELAEZ: YEAH.

I MEAN, THAT'S KIND OF ONE OF THOSE IMPORTANT THINGS YOU WOULD WANT TO SHOW US BEFORE YOU ASK US TO PASS AN ORDINANCE TO REGULATE AND SOLVE FOR SOMETHING LIKE THAT.

THE OTHER THING TOO IS I WORRY THAT WE'VE GOT THIS THING CALLED THE CONSTITUTION, WHICH IS ALL ABOUT PRIVATE PROPERTY RIGHTS, AND THAT'S SOMETHING THAT REALLY HASN'T COME UP.

AND I REALLY HAVE DONE SOME SOUL SEARCHING ON THIS ONE AND I CAN'T THINK OF ANYTHING LESS TEXAN THAN TELLING PEOPLE WHO THEY CAN RENT THEIR PROPERTY TO.

AND TAKE THAT, PLEASE, AS AN IMPORTANT ADMISSION FROM A GUY WHO GETS ACCUSED QUITE OFTEN OF BEING A HIPPY DIPPY LIBERAL.

WHAT WE'RE DOING OFFENDS ME AS A PERSON WHO IS LOOKING FORWARD TO ONE DAY BEING ABLE TO AFFORD A PIECE OF PROPERTY TO INVEST IN AND HELP, YOU KNOW, ME PUT MY KIDS THROUGH COLLEGE, MAYBE.

SO IF I'M NOT TELEGRAPHING IT CLEARLY ENOUGH, LET ME TELL YOU QUITE PLAINLY I HAVE SEEN NOTHING TODAY THAT I WANT TO SUPPORT AND IF PRESENTED TO ME TOMORROW THIS IS THE THING I WILL PROBABLY VOTE NO ON.

THANK YOU, MAYOR.

>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN PELAEZ.

COUNCILWOMAN GONZALES.

>> GONZALES: THANK YOU, MAYOR AND THANK YOU, COUNCILWOMAN, FOR SO MANY IMPORTANT QUESTIONS THAT YOU ADDRESSED WITH THIS POTENTIAL ORDINANCE.

THIS IS ONE WHERE WE HAVE HEARD A LOT FROM OUR CONSTITUENTS ABOUT HOW WE HOPE TO MOVE FORWARD.

AND I GUESS I JUST HAVE A FEW QUESTIONS.

I GUESS THE ORDINANCE CAME UP BECAUSE THERE WAS SOME CONCERN, PRIMARILY ABOUT AN OVERABUNDANCE OF THESE STRS IN A PARTICULAR AREA.

IS THAT HOW WE CAME TO THIS?

>> WELL, AS I INDICATED, I KNOW -- AND SPEAKING WITH

[01:15:02]

COUNCILMAN GALLAGHER OVER A YEAR AGO, THERE WAS SOME CALLS AND CONCERNS.

AND WE HAD RECEIVED OVER THE YEARS A FEW IN OUR OFFICE, IS IT LEGAL TO DO THIS AND THAT? WHAT DOES THE CODE SAY? I'M CONCERNED THAT SOMEONE IS RUNNING A HOTEL IN MY NEIGHBORHOOD.

WE KNOW COMMERCIAL ZONING IS NOT ALLOWED IN RESIDENTIAL, GENERALLY.

SO THOSE CONVERSATIONS HAVE STARTED OVER THE YEARS, BUT I THINK IT REACHED A POINT WITH COUNCILMAN GALLAGHER AND SOME OF THE COLLEAGUES THAT SIGNED THE CCR AT THAT TIME -- THEY'RE NOT HERE ANYMORE -- BUT THEY ASKED US TO TAKE A LOOK AT THIS.

IT WAS ALSO SOMETHING THAT OTHER CITIES WERE ALSO TACKLING THROUGHOUT THE NATION.

THAT IN AND OF ITSELF WOULD BE THE NUMBER OF CALLS HE WAS HEARING OR THE GENERAL LACK THAT OUR CURRENT CODES AND ORDINANCES ADDRESSED THIS AT ALL.

SAID, HEY, I THINK IT'S SOMETHING IMPORTANT FOR THE CITY TO LOOK AT AND LEARN ABOUT AND PUT SOMETHING TOGETHER THAT WE COULD OR SHOULD PROPOSE FOR OUR CITY.

>> GONZALES: AND THE COUNCILWOMAN MENTIONED LEGISLATIVE SESSION.

IS JEFF HERE?

>> WE DON'T KNOW FOR NEXT SESSION.

WE KNOW WHAT HAPPENED LAST SESSION, WHICH WAS THE BILL MADE IT ALL THE WAY THROUGH THE SENATE AND ULTIMATELY DIED IN THE HOUSE THAT WAS, FRANKLY, PUSHED BY THE AIRBNBS AND PLATFORMS. AND IT WAS VERY BROAD LANGUAGE THAT ADMITTEDLY A LOT OF CITIES HAD DIFFICULTY UNDERSTANDING EXACTLY WHAT THE IMPLICATIONS WERE.

BUT THE GIST OF IT WAS IT WOULD PREVENT CITIES FROM HAVING LOCAL ORDINANCES PROHIBITING A PROPERTY FROM BEING USED FOR SHORT-TERM RENTAL PURPOSES UNLESS IT WAS ORDINANCES THAT RELATED TO HEALTH AND SAFETY, FIRE CODES, TRAFFIC CONTROL.

IT WASN'T ABOUT THE USE OR THE CHARACTER OF NEIGHBORHOODS.

IT ALSO LIMITED THE PERMITTING FEE TO $100.

IT WAS ESSENTIALLY A STATEWIDE PREEMPTION OF LOCAL ORDINANCES TO SAY YOU CAN'T DO THESE THINGS AT THE LOCAL LEVELS.

A LOT OF CITIES RAISED A LOT OF CONCERN ABOUT IT AND WHEN IT GOT TO THE HOUSE IT DIED THERE.

THE INDUSTRY DID COME AND MEET WITH ALL THE CITIES AND THERE WERE A LOT OF QUESTIONS AND THERE HAD BEEN VERY LITTLE DIALOGUE UP TO THAT POINT, AND IT WENT AWAY.

WE SUSPECT THAT THAT CONVERSATION WILL BE CONTINUED THIS SESSION.

>> GONZALES: SO BOTTOM LINE IS IT TAKES OUR AUTHORITY AWAY TO DO ANYTHING.

>> IT SEVERELY LIMITS IT IS HOW I WOULD PUT IT.

>> GONZALES: THANK YOU FOR THAT.

I THINK THAT'S IMPORTANT, BECAUSE IT'S NOT THE ONLY ISSUE THAT COMES UP THAT RESTRICTS OUR ABILITY TO MAKE ANY DECISIONS AS A CITY.

WHILE I HAVE SOME OPINIONS ABOUT THIS, ONE THING I DO FEEL STRONGLY ABOUT IS OUR ABILITY TO MAKE OUR OWN DECISIONS ABOUT OUR OWN COMMUNITIES AND HOW THEY OPERATE.

I KNOW JUST SPEAKING FROM A COMMUNITY THAT HAS A LOT OF VACANCIES, THE HIGHEST VACANCY OF ANY DISTRICT.

WE WERE LOOKING AT SOME DATA, NOT REGARDING THIS, BUT JUST REGARDING SOME OF THE PLANNING, AND DISTRICT 5 HAS ABOUT 11% VACANCIES BASED ON THAT INFORMATION, VERSUS 8% FOR THE REST OF THE CITY.

AND ESPECIALLY ON THE WEST SIDE WE HAVE A LOT OF VACANT PROPERTIES AND I WOULD WELCOME ANY INVESTMENT IN THOSE PROPERTIES, WHETHER THEY WERE SHORT-TERM RENTAL, LONG-TERM RENTAL, HOMEOWNERS.

WE KNOW THAT THE SORT OF GRANNY FLAT MODEL IS SOMETHING WE HAVE BEEN USING FOR A LONG TIME, NOT JUST TO SUPPLEMENT INCOMES OF PEOPLE ON FIXED INCOMES, BUT ALSO TO GIVE OPTIONS FOR PEOPLE THAT WERE NOT ELIGIBLE FOR SECTION 8 HOUSING OR ELIGIBLE FOR EITHER PROBABLY MUCH MORE RESTRICTED OPTIONS.

AND SOMETIMES THAT MEANT THAT THE PROPERTIES WERE NOT REALLY UP TO CODE AND THEY WERE NOT THE BEST LIVING CONDITIONS.

AND SO I ALSO FEEL -- AND I ALSO APPRECIATE ALL THE TIME PEOPLE HAVE SPENT ON THIS, ESPECIALLY THE COMMUNITY PEOPLE WHO ARE NOT PAID BUT WHO ARE JUST COMING TO INVEST IN THEIR COMMUNITIES.

THEY WANT TO HAVE A SAY IN HOW THEIR NEIGHBORHOODS EVOLVE.

BUT AS THE DISCUSSION HAS CONTINUED, I JUST FEEL MORE CONFLICTED AND NOT REALLY PREPARED AT THE MOMENT TO MAKE ANY STRONG DECISIONS ABOUT IT, ESPECIALLY BECAUSE IN A COMMUNITY LIKE MINE WE NEED SO MUCH INVESTMENT.

AND I WOULD WELCOME ANY KIND OF INVESTMENT THAT MEANT THAT WE COULD BRING OUR HOMES UP TO CODE, THAT WE COULD ENCOURAGE PEOPLE TO STAY LONG TERM, SHORT TERM, IMPROVE THE TAX BASE FOR OUR NEIGHBORHOODS.

[01:20:01]

I KNOW THAT JUST TODAY I RECEIVED TWO MESSAGES FROM NEIGHBORS COMPLAINING ABOUT VACANT PROPERTIES AND WHAT HAPPENS IN VACANT PROPERTIES.

AND AS SOON AS THOSE PROPERTIES BECOME VACANT THEY ARE OVERRUN BY HOMELESS AND BY DRUG ADDICTS AND BY ILLICIT ACTIVITY.

THERE WAS A STORY ON THE NEWS, PROBABLY EVERYBODY SAW, ABOUT -- WELL, IT WAS A VERY NEGATIVE STORY ABOUT SEXUAL ACTS OCCURRING IN THE OPEN IN VACANT PROPERTIES IN MY DISTRICT.

AND SO I FEEL LIKE I HAVE A MUCH DIFFERENT CONCERN AND WOULD LIKE TO SEE, I THINK AT THIS MOMENT, NOTHING THAT WOULD RESTRICT DEVELOPMENT OF SINGLE-FAMILY HOMES IN MY NEIGHBORHOOD.

I'M RELUCTANT TO SUPPORT ANYTHING THAT WOULD DO THAT, ESPECIALLY WHEN WE JUST NEED SO MUCH HELP.

YOU KNOW, I'M NOT REALLY PREPARED TO MAKE A STRONG RECOMMENDATION OR OPINION BECAUSE IN MY NEIGHBORHOOD WE WOULD WELCOME THAT.

SO I THINK I'LL JUST SORT OF RESERVE ANY MORE COMMENTS AS WE FLESH THIS OUT.

I KNOW THAT THE COUNCILMAN MADE SOME RECOMMENDATIONS TODAY BUT THERE SEEMS LIKE THERE'S TOO MUCH UP IN THE AIR.

AND JUST REGARDING -- IT WAS MENTIONED THAT THERE WERE FEES ASSOCIATED WITH DIFFERENT -- WHETHER YOU ARE A TYPE ONE OR TYPE TWO.

BUT IF YOU'RE THE HOMEOWNER AND YOU'RE COLLECTING RENT, YOU'RE PAYING TAXES ON THAT ANYWAY.

YOU PAY TAXES ON THE PROPERTY THAT YOU OWN.

YOU PAY TAXES ON THE RENT THAT YOU COLLECT.

YOU'RE CONTRIBUTING, YOU KNOW, THE PEOPLE WHO COME AND VISIT ARE ALSO CONTRIBUTING TO THE ECONOMY.

SO I FEEL LIKE ANY REGULATION AT THE MOMENT THAT WOULD BE NEGATIVELY IMPACTED TO THE PROPERTY OWNER I WOULDN'T SUPPORT BECAUSE I THINK WE'RE TRYING TO STILL GAIN SOME ADVANTAGES IN THE NEAR WEST SIDE FOR IMPROVING THE QUALITY OF OUR HOMES.

AND SOME OF THE FEEDBACK I HAVE GOTTEN WAS IT'S EQUALLY EXPENSIVE TO RUN SHORT-TERM RENTALS.

BUT MOST OF THE PEOPLE I HAVE HEARD FROM THAT OPERATE SHORT-TERM RENTALS ALSO CAME BY THE PROPERTY, NOT AS AN INVESTMENT, BUT EITHER BY INHERITANCE, BY NECESSITY, OR WITH THE INTENT TO RENT IT LONG TERM AND THEN FOR WHATEVER REASON IT HASN'T WORKED OUT.

THAT WAS MENTIONED A COUPLE OF TIMES AND THE DIFFICULTY SOMETIMES IN DEALING WITH LONG-TERM RENTALS AND THE DAMAGE THAT CAN OCCUR.

SO I'LL PASS IT ON RIGHT NOW BUT I DON'T FEEL THAT WE'RE REALLY PREPARED TO MAKE ANY DECISIONS ABOUT THIS RIGHT NOW, SO THANK YOU.

>> MAYOR NIRENBERG: THANK YOU, COUNCILWOMAN GONZALES.

COUNCILMAN COURAGE.

>> COURAGE: THANK YOU, MAYOR.

YOU KNOW, IT'S JUST OBVIOUS TO ME LISTENING THAT WE HAVE DIFFERENT AREAS IN THE COMMUNITY THAT HAVE DIFFERENT WAYS THIS CAN AFFECT THEM.

WHAT YOU JUST EXPLAINED ABOUT DISTRICT 5 IS SOMETHING IMPORTANT FOR US TO RECOGNIZE.

WE DO WANT TO DEVELOP MORE HOUSING, MORE AFFORDABLE HOUSING IN MANY AREAS OF THE CITY.

THEN AGAIN YOU LOOK AT, YOU KNOW, AREA ONE DOWNTOWN AND EVERYBODY WANTS TO GO AHEAD AND BUILD AN STR DOWN THERE AND, YOU KNOW, WHAT DOES THAT DO TO THE QUALITY OF LIFE FOR THE PEOPLE WHO HAVE BEEN LIVING THERE FOR 20, 30, 40, 50 YEARS AND THE CHANGE IT MAKES TO THEIR COMMUNITY? AND THEN YOU CAN TAKE A LOOK AT THE NORTH SIDE, MY AREA.

IN DISTRICT 9 WE'VE GOT HOMEOWNERS ASSOCIATIONS, RESIDENT ASSOCIATIONS, PROPERTY ASSOCIATIONS THAT HAVE COVENANTS AND RESTRICTIONS.

LITERALLY HALF OF DISTRICT 9 COULDN'T HAVE THESE KINDS OF THINGS POP UP OR BE BUILT THERE BECAUSE OF RESTRICTIONS PUT IN AT THE TIME THESE NEWER SUBDIVISIONS WERE BUILT.

SO WE'RE KIND OF LOOKING AT A LOT OF DIFFERENT AUDIO].

I HAVE BEEN KIND OF LOOKING AT THIS FROM THE POINT OF VIEW OF HOW DO THESE NEIGHBORHOODS DEVELOP? AND I SUPPOSE THE PROCESS IS -- AND YOU CAN HELP ME WITH THIS, MIKE, IF A DEVELOPER WANTS TO DEVELOP A RESIDENTIAL NEIGHBORHOOD OR A COMMERCIAL PROJECT, THEY HAVE TO COME TO THE CITY WITH A PLAT, IS THAT RIGHT?

>> THAT'S CORRECT.

>> COURAGE: DOES THAT PLAT USUALLY SAY IT'S GOING TO BE COMMERCIAL OR RESIDENTIAL?

>> YEAH, IT DOES.

[01:25:02]

THEY TELL US VERY EARLY ON THAT IT HAS TO BE THAT.

BECAUSE WE APPLY DIFFERENT REGULATIONS TO THAT, WHETHER YOU'RE A RESIDENTIAL SUBDIVISION OR COMMERCIAL.

>> COURAGE: RIGHT.

SO THERE ARE DIFFERENT REGULATIONS.

IF THEY DECIDE THEY ARE GOING TO RESIDENTIAL THEN THEY LET YOU KNOW THAT AND THEN IT HAS TO INCLUDE ZONING AND IT HAS TO BE RESIDENTIAL ZONING, ALTHOUGH I SUPPOSE YOU COULD HAVE SOME COMMERCIAL AROUND THE EDGES TO BUILD SOME BUSINESSES TO SUPPORT THE RESIDENTIAL COMMUNITY.

>> SURE.

>> COURAGE: ONCE THEY ARE STARTING TO BE DEVELOPED, THAT ZONING IS IN PLACE AND YOU KNOW WHICH AREAS ARE GOING TO BE RESIDENTIAL, WHICH AREAS ARE GOING TO BE COMMERCIAL.

IS IT EASY TO CHANGE THAT?

>> IT'S A LONG PROCESS CERTAINLY TO APPLY FOR A ZONING CHANGE.

YOU GO THROUGH THE ZONING COMMISSION, PUBLIC OPEN PROCESS AND WE COME TO COUNCIL ON THURSDAY AFTERNOONS AND PROPOSE.

>> COURAGE: THAT'S WHAT WE DO TODAY MOST OF THE TIME.

I USED TO LIVE IN LOS ANGELES HEIGHTS AND WHEN I LIVED THERE ONE STREET OVER WAS RIGHT ON I-10.

AND SO SLOWLY AND GRADUALLY ALL OF THE RESIDENTIAL PROPERTY ALONG THERE GOT SOLD, GOT CHANGED TO COMMERCIAL, AND ALL OF A SUDDEN ALL ALONG I-10 IN THAT AREA, IT'S ALL COMMERCIAL.

AND THEN A LOT OF THAT STARTED TO BECOME COMMERCIAL AND ALL OF A SUDDEN THAT NEIGHBORHOOD THAT I USED TO LIVE IN IS HALF COMMERCIAL, HALF RESIDENTIAL.

THE RESIDENTIAL PROPERTIES ARE NOWHERE NEAR WHAT THEY WERE WHEN I LIVED THERE OVER 30 YEARS AGO NOW.

AND THAT'S WHAT I SEE AS WHAT WE'RE FACING IN THIS KIND OF A SITUATION.

THE COMMUNITIES THAT MOST OF THE PEOPLE ARE TALKING ABOUT TODAY, THE ONES THAT HAVE COME AND SPOKEN AT THE COMMITTEE MEETINGS, MOST OF THEM LIVE IN RESIDENTIAL NEIGHBORHOODS AND THEY BOUGHT THOSE HOMES BECAUSE THEY WANTED TO LIVE IN A RESIDENTIAL NEIGHBORHOOD.

WE BUILD THESE COMMUNITIES FOR THE WORKING MEN AND WOMEN IN OUR CITY TO HAVE A PLACE TO GO HOME TO AWAY FROM WORK, AWAY FROM THE PROBLEMS THEY HAVE THERE TO HAVE PRIVACY OR TO HAVE THEIR FAMILY GROW UP IN A SAFE AREA WITHOUT A LOT OF COMMERCIAL INTERESTS.

THEY WANT TO KNOW THEIR NEIGHBORS, SHARE WITH THEIR NEIGHBORS, HAVE A SOCIAL LIFE AWAY FROM COMMERCIAL.

AND I THINK THAT'S THE WAY IT SHOULD BE.

AND SO WHEN WE START SAYING, WELL, WE COULD PICK AND CHOOSE A FEW OF THESE HOUSES ALONG HERE AND WE CAN TURN THEM INTO COMMERCIAL PROPERTIES, WHICH IS EXACTLY WHAT WE'RE DOING, I THINK WE'RE REALLY UNDERMINING THE INTEGRITY OF THOSE NEIGHBORHOODS THAT PEOPLE MAY HAVE BEEN LIVING IN FOR MANY, MANY YEARS.

NOW, I SOLD REAL ESTATE IN THIS CITY FOR 12 YEARS.

FROM 1978 TO 1990 SO I UNDERSTAND ABOUT PROPERTY RIGHTS.

I HAVE ALWAYS BEEN AN ADVOCOOT FOR PROPERTY RIGHTS.

BUT WHEN PEOPLE BUY RESIDENTIAL HOMES IN RESIDENTIAL AREAS THEY SHOULD HAVE RESIDENTIAL PROPERTY RIGHTS, NOT COMMERCIAL PROPERTY RIGHTS.

I THINK THAT'S SOMETHING THAT WE REALLY NEED TO GIVE MORE CONSIDERATION TO.

BECAUSE THAT'S WHAT WE'RE DOING.

WE'RE CREATING COMMERCIAL PROPERTY RIGHTS IN SOMEONE'S RESIDENTIAL HOME.

NOW I'LL ALSO SAY THIS.

MY OPINION IS IF I WERE IN A SITUATION WHERE I WAS LIVING IN MY HOME AND I WAS RETIRED, I WAS ON A FIXED INCOME, MY CHILDREN HAD MOVED AWAY BUT I WANT TO MAINTAIN MY HOME.

I WANT TO LIVE WITH MY NEIGHBORS.

I LOVE MY COMMUNITY, I WOULD RENT OUT A ROOM.

I WOULD RENT OUT A COUPLE OF ROOMS. I WOULD RENT OUT MAYBE AS OFTEN AS I COULD.

BUT I WOULD STILL LIVE IN MY HOME AND LIVE IN MY COMMUNITY.

AND THE ONLY REASON I WOULD DO THAT IS BECAUSE I LOVE WHERE I LIVE AND I WANT TO STAY THERE AND I WANT TO ENJOY THAT COMMUNITY.

AND I WANT TO HAVE CONTROL OVER THAT.

AND MY NEIGHBORS WOULD UNDERSTAND WHY I WAS DOING THAT AND WOULD UNDERSTAND THAT I AM STILL THE HOMEOWNER.

I CONTROL WHO COMES INTO MY HOUSE, WHO COMES TO MY NEIGHBORHOOD AND I'M GOING TO LOOK OUT FOR MY NEIGHBOR BECAUSE THEY HAVE BEEN LOOKING OUT FOR ME FOR YEARS THAT I HAVE BEEN LOOKING THERE.

THE TYPE ONE SHORT-TERM RENTAL TO ME IS A DIFFERENT CATEGORY OF AN OPPORTUNITY FOR SOMEBODY TO SUPPORT THEMSELVES AND CONTINUE LIVING IN THEIR HOME AND LIVING THE LIFESTYLE THEY HAVE BEEN USED TO LIVING AT TIMES WHEN THEY DON'T HAVE THE JOB OR INCOME THEY USED TO HAVE.

IT'S MUCH DIFFERENT TO ME THAN SOMEBODY GOING INTO AN AREA AND BUYING A PROPERTY SPECIFICALLY FOR MAKING MONEY OFF OF IT, NOT REALLY CARING ABOUT THE COMMUNITY OR THE NEIGHBORHOOD.

OH, SURE, THEY'RE GOING TO PUT MONEY INTO THE HOUSE BECAUSE THEY WANT TO MAKE IT LOOK GOOD SO THEY CAN RENT IT OUT.

AND THAT'S A POSITIVE.

[01:30:01]

BUT STILL THE EFFECT THAT IT HAS ON THE SOCIAL FABRIC OF THAT NEIGHBORHOOD IS DEFINITELY GOING TO BE IMPACTED, PARTICULARLY WITHOUT REGULATIONS THAT ALLOW MORE AND MORE AND MORE.

HAVING, FOR EXAMPLE, ANY OF YOU, HOW WOULD YOU FEEL IF YOU HAD A SHORT-TERM RENTAL THAT WAS AN OWNER OCCUPIED LIVING NEXT TO YOUR HOUSE.

HOW DO YOU THINK IT WOULD IMPACT THE QUALITY OF LIFE FOR YOUR FAMILY? YOU MIGHT SAY I COULD LIVE WITH ONE BUT NOW 300 FEET DOWN THE STREET THERE'S GOING TO BE ANOTHER ONE.

AND MAYBE BEHIND YOU 150 FEET AWAY THERE'S ANOTHER ONE.

AND SO WHAT DOES THAT MEAN TO YOUR NEIGHBORHOOD OVER TIME? I'M NOT AFRAID OF WHAT THE STATE LEGISLATURE IS GOING TO DO.

WE HAVE BEEN FIGHTING WITH THEM.

WE'RE GOING TO HAVE TO CONTINUE TO FIGHT WITH THEM.

WHAT I CARE ABOUT IS THE QUALITY OF LIFE FOR PEOPLE IN THIS CITY.

AND I WANT EVERYBODY TO ENJOY THEIR NEIGHBORHOODS THE WAY THEY INTENDED WHEN THEY BOUGHT IN THERE.

AND I THINK THE OTHER BIG CONCERN WE NEED TO REALLY GIVE THE MOST CONSIDERATION TO IS IF WE DO THIS AND IF WE ENABLE MORE AND MORE, LET'S SAY ANOTHER 2,000 OR 3,000 PRIVATE PROPERTIES TO BE TURNED INTO SHORT-TERM RENTALS -- AND I'M TALKING ABOUT NON-OWNER OCCUPIED, WHAT ARE WE DOING FOR THE AFFORDABLE HOUSING STOCK IN OUR CITY? ALL OF A SUDDEN THE HOUSE THAT YOU MIGHT BE ABLE TO RENT FOR $850, $900, $1,000 A MONTH, THAT SOMEONE COULD AFFORD WHO EARNS $40,000 IS OFF THE MARKET BECAUSE THEY HAVE CUT IT UP INTO FOUR OR FIVE ROOMS SO THEY CAN MAKE $5,000 A MONTH OR $10,000 A MONTH, BUT THAT'S ONE LESS HOME FOR ONE LESS WORKING FAMILY.

CAN WE AFFORD SEVERAL THOUSAND MORE OF THOSE IN OUR COMMUNITY WHEN WE'RE STRUGGLING TO FIND AFFORDABLE HOUSING FOR THE PEOPLE THAT WE HAVE WHO WANT TO LIVE IN A NEIGHBORHOOD AND ENJOY THEIR LIVES? WHAT IS IT GOING TO DO TO OUR SCHOOL DISTRICTS WHEN THERE ARE FEWER STUDENTS LIVING THERE.

I KNOW IT WILL HURT SAISD IF THEY LOSE 2,000 STUDENTS BECAUSE 1,000 HOMES BECOME OCCUPIED BY VISITORS ALL THE TIME.

THEY LOSE ANOTHER 2,000 STUDENTS.

THAT MEANS THEY LOSE MILLIONS OF DOLLARS FOR THAT SCHOOL.

OR SOUTH SAN OR EAST CENTRAL OR ANY OF THOSE.

SO, YOU KNOW, WE HAVE TO BE REAL CAREFUL FOR THE UNEXPECTED CONSEQUENCES OF PURSUING A FREE MARKET FOR TYPE TWO STR, IN PARTICULAR, IN OUR CITY.

SO I HOPE EVERYONE WILL CONSIDER SOME OF THOSE OTHER ASPECTS OF WHAT WE'RE TALKING ABOUT BEFORE WE COME TO ANY FINAL DECISION.

THANK YOU, MAYOR.

>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN COURAGE.

COUNCILMAN SALDANA.

>> SALDANA: THANK YOU, MAYOR.

I JUST WANT TO AT FIRST, MICHAEL, PLEAD IGNORANCE ON NOT KNOWING A LOT ABOUT THIS PARTICULAR ISSUE.

IN FACT, I THINK I WAS IGNORANT IN ASSUMING THIS WAS GOING TO BE THAT INTERESTING TODAY.

I HEARD AS THIS WAS GOING THROUGH THE PROCESS ABOUT A YEAR AGO THAT THERE WAS SOME COMPROMISE HAPPENING BETWEEN THE B&BS OF THE WORLD, THE STAKEHOLDERS USING AIRBNB OR HOMEAWAY HAD COME UP WITH A COMPROMISED SOLUTION THAT I THOUGHT WE WERE GOING TO REVIEW TODAY.

IS THAT NOT THE CASE? ARE FOLKS ON DIFFERENT SIDES STILL?

>> YES.

THE PROPOSED ORDINANCE WE HAVE IS OUR BEST ATTEMPT, NOT ONLY CITY STAFF BUT THE TASK FORCE, TO GET AS CLOSE TO CONSENSUS AS WE CAN.

BUT AS YOU'LL HEAR NOT ONLY AMONGST YOURSELVES BUT EVEN THE STAKEHOLDERS THAT ARE SPEAKING OUT, INCLUDING AIRBNB AND OTHERS, THERE'S STILL A WIDE VARIETY OF OPINION AS TO WHAT COULD OR SHOULD BE DONE.

SO WHILE WE THINK THIS IS A GOOD MIDDLE GROUND TO START WITH, THERE'S STILL A LOT OF PEOPLE THAT DON'T LIKE IT FOR VARIOUS REASONS.

>> SALDANA: GOTCHA.

I'LL JUST ADVISE THEN THAT I AM NOT PREPARED AS A COUNCIL MEMBER TO TAKE ON ANYTHING JUST YET.

AND I HAD THOUGHT THAT WE WERE PRETTY CLOSE TO GETTING SOMETHING THAT WE WERE GOING TO SUPPORT, EVEN AS CLOSE AS NEXT MONTH.

BUT I DON'T THINK THAT'S WHAT I'M HEARING.

THE REASON I'M PLEADING IGNORANCE ON IT IS BECAUSE THIS IS ONE OF THOSE ISSUES THAT COMES TO THE FULL COUNCIL WHERE NOT ALL COUNCIL DISTRICTS ARE CREATED EQUAL.

I HAVE TO ADMIT I DON'T SEE OR HEAR IT FROM MY NEIGHBORHOOD ASSOCIATIONS AS MUCH AS COUNCILMAN TREVINO DOES IN DISTRICT 1, FOR A VARIETY OF REASONS.

BUT A NUMBER OF WHICH WE CAN JUST TICK OFF AROUND WHERE TOURISTS WHO COME TO SAN ANTONIO WANT TO STAY.

AND THEY WANT TO STAY CLOSE ENOUGH TO VENUES LIKE THE ALAMO, RIVER WALK, OR ALAMODOME.

THE FACT THAT COUNCILMAN TREVINO HAS OFFERED AMENDMENTS TO US FOR REVIEW IS GOING TO WEIGH VERY HEAVILY FOR ME IN TERMS OF

[01:35:01]

UNDERSTANDING THAT, COUNCILMAN, YOU SORT OF LEAD FOR ME ON THIS ISSUE BECAUSE I THINK YOU HEAR ABOUT IT MORE OFTEN.

BUT JUST TO ZOOM OUT A LITTLE BIT MORE, THIS IS NOT SOMETHING THAT THE CITY COUNCIL SAID, HEY, I HAVE BEEN HEARING ABOUT AIRBNBS AND SHORT-TERM RENTALS AND HOMEAWAY, LET'S GO REGULATE THEM.

THAT'S NOT HOW THIS HAPPENED.

AND, IN FACT, THIS WAS IN DISTRICT 10, FORMER COUNCILMAN GALLAGHER WAS GETTING SOME QUESTIONS FROM RESIDENTS WHO WERE TELLING HIM THAT THEY WERE SEEING A SURPLUS OF FOLKS WHO WERE NOT ONLY USING AIRBNB BUT THIS TENDENCY THAT ENTIRE HOMES WERE BEING BOUGHT UP, NOT BY THE FOLKS LIVING THERE, BUT BY NEW INVESTORS.

WHEN COUNCILMAN GALLAGHER CAME TO ME AND ASKED ME WHETHER WE SHOULD SIGN THE CCR TO START THE STUDY, IT MADE A LOT OF SENSE TO ME TO BE ABLE TO PUT OUR HANDS AROUND THIS ISSUE.

WE DON'T WANT TO BE THE ONES TO COME UP WITH THE RULES OF THE GAME.

WE'LL OFFER FEEDBACK AT THIS POINT BUT I HAD TRULY ASSUMED WE WERE AT A CLOSER POINT OF COMPROMISE WITH THE FOLKS WHO WANT TO USE IT AS AN OPPORTUNITY TO SUPPLEMENT THEIR INCOME, SUPPLEMENT THEIR ABILITY TO PAY THEIR MORTGAGE OR, YOU KNOW, AT THE SAME TIME LISTENING TO THOSE FOLKS WHO DON'T WANT TO FEEL LIKE THEIR NEIGHBORHOOD IS CHANGING TOO QUICKLY.

WHICH YOU HAVE TO ADMIT HAS TO BE TRUE IN SOME OF THESE NEIGHBORHOODS THAT COUNCILMAN TREVINO REPRESENTS.

WHETHER IT'S KING WILLIAM OR LAVACA, AND EVEN THE AREAS AROUND THE ALAMODOME, AS YOU ARE WALKING THROUGH TO THE FINAL FOUR, PARKING WAS TOUGH SO YOU HAD TO PARK FAR ENOUGH.

MY OWN EXPERIENCE WAS I WAS WALKING THROUGH AND SAW A NUMBER OF FOLKS WHO WERE OUTSIDE THEIR AIRBNBS ALONG THE WALKWAY.

IT IS CHANGING NEIGHBORHOODS.

I'M NOT JUDGING WHETHER THOSE ARE GOOD OR BAD WAYS THAT THEY'RE CHANGING, THEY'RE JUST CHANGING.

WE DON'T WANT TO PUT ANYBODY IN A POSITION, CERTAINLY IN THE NEXT MONTH, TO MAKE A DECISION ON SOMETHING WE DON'T FEEL LIKE WE HAVE A FIRM GRASP ON, ESPECIALLY WITH THE PARTIES WHO WANT TO CONTINUE TO DO AIRBNB OR THOSE WHO WANT TO HAVE SOME CONTROL AS TO HOW THE NEIGHBORHOOD CONTINUES TO FORM OUT.

I WILL PLEASE IGNORANCE ON THE POLICY SPECIFICS BUT COUNCILMAN COURAGE MENTIONED HOW WOULD YOU LIKE IT IF YOUR NEIGHBOR HAD AN AIRBNB? MY NEIGHBOR DOES HAVE AN AIRBNB.

IT'S ONE THEY LIVED IN BUT WHEN THEY RENT IT OUT THEY RENT THE WHOLE HOME.

FOR ME IT'S THE EXPERIENCE WE HAVE NEW NEIGHBORS EVERY WEEK OR WEEKEND.

MOST OF THEM ARE FOLKS WHO ARE WATCHING THEIR SON OR DAUGHTER GRADUATE FROM LACKLAND AIR FORCE BASE, WHICH MAKES A LOT OF SENSE.

SO THE EXPERIENCE HASN'T BEEN A BAD ONE.

JUST A QUICK ANECDOTE.

I DON'T MAKE DECISIONS BASED ON ANECDOTES.

I DON'T FEEL TERRIBLE ABOUT IT CUT THE GRASS MORE OFTEN NOW THAT IT IS MARKETED AS AN AIRBNB THAN THEY DID PREVIOUS.

I THINK COUNCILWOMAN GONZALES HAS A POINT AROUND SOME OF THE FEATURES THAT WE DON'T REALLY TALK ABOUT IN TERMS OF THE CHARACTERISTICS THAT CHANGES THE WAY SOMEBODY ACTUALLY TAKES CARE OF THEIR HOME AND INVESTS IN THEIR HOME, WHICH MAY BE TRUE FOR SOME OF OUR OLDER COMMUNITIES.

NEVERTHELESS I WILL SUBMIT NOT ALL COUNCIL DISTRICTS ARE CREATED EQUAL IN THIS ISSUE AND I WILL GIVE MORE WEIGHT TO COUNCILMAN TREVINO IN DISCUSSING SOMETHING LIKE THIS.

HE BRINGS UP A POINT THAT I WILL SUPPORT, WHICH IS THE IDEA THAT WE HAVE INCENTIVIZED SOME DOWNTOWN HOUSING TO BE BUILT FOR THE PURPOSES OF FOLKS LIVING THERE, SPECIFICALLY BECAUSE IN THE DOWNTOWN AREA WE INCENTIVIZED THOSE PLACES TO BECOME RESIDENTIAL SO THEY DON'T BECOME HOTELS.

BECAUSE IT'S EASY TO BUILD HOTELS DOWNTOWN.

THE MARKET BEARS THAT OUT.

YOU GET MORE MONEY FOR THAT.

WE HAVE INCENTIVIZED THESE PROJECTS.

THIS IS WHAT I JUST HEARD.

I DON'T KNOW IF IT IS TRUE.

AN ENTIRE FLOOR BECOMES A SHORT-TERM RENTAL.

FOR TWO REASONS, ONE OF WHICH IS THERE ARE, LIKE THE MAVERICK, FOR EXAMPLE, SLOTS WITHIN THOSE UNITS THAT ARE SET ASIDE FOR FIRST-YEAR TEACHERS OR FOLKS WHO MIGHT HAVE OPPORTUNITIES TO BE INCENTIVIZED.

TO THINK THAT MIGHT BE TRADED OUT FOR SOMETHING USING THIS AS AN STR BOTHERS ME AS A POLICYMAKER THAT THE OBJECTIVE WAS TO HAVE DOWNTOWN HOUSING OF RESIDENTIALS AND NOT ANOTHER HOTEL ASPECT.

THAT'S ONE I CAN SUPPORT AND I THINK THE REST WE NEED TO HAVE MORE TIME TO STEW ON SO WE CAN FULLY BAKE IT.

I'M WILLING TO LOOK AT COUNCILMAN TREVINO, AS HE GETS TO HEAR IT MORE OFTEN AND HIS RESIDENTS ARE TELLING HIM A LITTLE BIT MORE ABOUT IT.

THANK YOU, MAYOR.

>> MAYOR NIRENBERG: THANK YOU,

[01:40:01]

COUNCILMAN SALDANA.

COUNCILWOMAN SANDOVAL.

>> SANDOVAL: THANK YOU, MAYOR.

THANK YOU, MIKE, FOR YOUR WORK ON THIS, TO ALL YOUR TEAM.

I REALLY APPRECIATE THE WORK OF THE TASK FORCE.

I KNOW THEY MET FOR MONTHS AND I'M SURE IT WASN'T EASY AND I REALLY RESPECT THAT THEY WERE ABLE TO NEGOTIATE SOMETHING.

LIKE THE COUNCILMAN SAID, WE KIND OF DEFERRED TO THEM.

I WOULD LOVE FOR US TO ACCEPT WHAT THEY CAME UP WITH BUT IT'S NOT THAT EASY BECAUSE THE PASSIONS ARE FLARING AROUND THE DAIS RIGHT NOW.

AND I THINK YOU MENTIONED THAT YOU HAD TAKEN THIS TO COMMUNITY HEALTH AND EQUITY AND I THINK ALL OF YOU CAN UNDERSTAND WHY I WAS RELUCTANT TO TAKE ACTION IN THAT COMMITTEE BECAUSE THIS IS REALLY AN ISSUE THAT I THINK ALL THE COUNCIL DISTRICTS NEED TO WEIGH IN ON BEFORE WE HAVE A RECOMMENDATION.

AND WE DON'T HAVE THAT ON ANY ONE PARTICULAR COMMITTEE.

IT WAS REALLY IMPORTANT, I FELT, THAT THIS COME TO B SESSION.

THANK YOU FOR MAKING THAT PRESENTATION TWO TIMES.

SO A FEW COMMENTS.

YOU TALKED ABOUT STRIKING A BALANCE, AND I DO THINK THAT'S WHERE WE NEED TO GO WITH THIS.

IT'S KIND OF A GOOD SIGN THAT WE HAVE THIS PROBLEM TO SOLVE, RIGHT? WE'RE EXPERIENCING GROWING PAINS BUT, I MEAN, THEY'RE GREAT.

IT MEANS PEOPLE LIKE SAN ANTONIO AND WE'RE GROWING AND GOOD THINGS ARE HAPPENING HERE.

BUT AS SOME OF MY COLLEAGUES SAID, YOU KNOW, NOT ALL DISTRICTS, NOT ALL NEIGHBORHOODS ARE CREATED EQUALLY.

SO IT IS UNFORTUNATE THAT WE HAVE TO COME UP WITH A BLANKET REGULATION, BUT MAYBE WE DON'T.

SO I WOULD LIKE TO POSE THAT FOR CONSIDERATION IS THAT WE HAVE MAYBE SPECIAL DISTRICTS CUT OUT OR AREAS CUT OUT FOR DIFFERENT TYPES OF DIFFERENT REGULATION.

I'M EXTREMELY SENSITIVE TO THE COMMENTS OF COUNCILWOMAN GONZALES WHERE SHE DOES WANT INCENTIVES.

SORRY.

SHE DOES WANT INVESTMENT.

SORT OF A REVERSE INCENTIVE MIGHT BE LESS REGULATION IN THAT AREA SO WE CAN REALLY DRIVE IN THE WEST SIDE.

I WOULD LOVE TO SEE IT THRIVE AS WELL.

I DO JUST WANT TO SAY I AM NOT 100% OPPOSED TO STR TYPES TWO.

I HAVE USED THEM IN OTHER CITIES THAT I TRAVEL TO.

THEY ARE EXTREMELY CONVENIENT.

THEY ALLOW YOU TO PRETEND YOU'RE A LOCAL AND YOU GO TO THE COFFEE SHOP THAT'S ON THE CORNER.

OR YOU EXPERIENCE LIFE AS A RESIDENT.

AND THEY ALLOW YOU SOME PRIVACY BUT I COULD UNDERSTAND IF YOU HAVE TOO MANY OF THOSE THEN YOUR NEIGHBORHOOD STARTS TO FEEL LIKE A HOTEL OR A THEME PARK AT THAT POINT.

SO I THINK STRIKING A BALANCE IS ABSOLUTELY KEY HERE.

AND I THINK THE DENSITY STIPULATION IS AN ATTEMPT AT STRIKING THAT BALANCE, RIGHT? I ALSO AGREE THAT STR, WHETHER THEY ARE TYPE ONE OR TYPE TWO, SOMETIMES THEY ARE GOOD FOR THE NEIGHBORHOOD BECAUSE THOSE HOMES LOOK BEAUTIFUL COMPARED -- PROBABLY COMPARED TO MY HOME.

BUT THEY MOW THEIR LAWN IN AUDIO].

I THINK THEY CAN BRING SOMETHING GOOD TO A NEIGHBORHOOD.

BUT THE REALITY IS IS THAT THAT BUSINESS MODEL, IT'S UNIFORM THROUGHOUT THE COUNTRY, OR THE WORLD, IN FACT, BUT IT DOESN'T EXIST IN A VACUUM ONCE IT EXISTS IN A GIVEN CITY.

LET'S TALK ABOUT SAN ANTONIO.

WE ARE TALKING ABOUT A CITY THAT HAS AN AFFORDABLE HOUSING SHORTFALL SO WE HAVE TO TAKE THAT INTO CONSIDERATION.

LIKE THE COUNCILMAN SAID, EVERY STR THAT'S NOT AVAILABLE FOR A LONG -- EVERY STR THAT'S OUT THERE IS NOT AVAILABLE FOR LONG-TERM RENTALS.

SOMEONE IS TELLING ME THAT'S NOT TRUE.

BUT A TYPE TWO STR THAT'S USED AS AN STR FULL TIME IS NOT AVAILABLE FOR A LONG-TERM RENTAL.

IN THE CASE OF THE COUNCILMAN'S NEIGHBORS, THAT'S GREAT.

YOU HAVE THE STABILITY OF HAVING YOUR NEIGHBORS COMING BACK, SO YOU HAVE THAT STABILITY.

BUT WHAT WOULD IT BE LIKE IF YOU NEVER HAD THOSE NEIGHBORS THERE? WHO ARE YOU GOING TO CALL IF YOU LOCK YOURSELF OUT OF YOUR HOUSE? WHO IS GOING TO HOLD THAT KEY? ALL RIGHT.

MAYBE YOU GO TWO DOORS DOWN, BUT YOU GET THE POINT.

THE OTHER THING IS WE ALSO HAVE

[01:45:01]

A REALLY HIGH PROPERTY TAX BURDEN HERE, AND WE KNOW THAT.

I MET A GENTLEMAN ON A PLANE AND HE SAID BEFORE I LIVED IN SAN ANTONIO I LIVED IN -- I DON'T KNOW, I THINK D.C.

HE SAID I PAID $6,000 IN INCOME TAX AND $6,000 IN PROPERTY TAX.

NOW I LIVE IN SAN ANTONIO, TEXAS AND NOW THERE'S NO INCOME TAX BUT I STILL PAY $12,000 A YEAR.

IT'S JUST IN PROPERTY TAX.

SO I UNDERSTAND WANTING TO USE AN STR TO HELP WITH THAT PROPERTY BURDEN.

BECAUSE IT'S A HUGE BURDEN.

BUT WHAT'S HAPPENING, THOUGH, WHAT I SEE HAPPENING IS WE INVEST IN THE STR THAT DRIVES UP PROPERTY VALUES AND THEN THE APPRAISALS GO UP.

SO WE'RE KIND OF CAUGHT IN THIS CIRCLE.

SO I JUST THINK THAT'S ANOTHER THING WE NEED TO CONSIDER GOING FORWARD.

WE'RE ALSO IN AN ECONOMICALLY SEGREGATED CITY.

ALSO NEEDS TO BE CONSIDERED.

WHERE CAN YOU AFFORD TO LIVE, WHERE CAN YOU NOT AFFORD TO LIVE? AND STRS MAY DRIVE THAT.

AND WE ALSO HAVE RAPIDLY-CHANGING NEIGHBORHOODS.

DISTRICTS 1, DISTRICTS 3.

SUFFICE IT TO SAY THAT THE STRS AND THE HOME RENTAL PLATFORM JUST DOESN'T EXIST IN A VACUUM.

CERTAINLY NOT IN OUR CITY.

SO I DO SUPPORT THE COUNCILMAN'S SUGGESTIONS THAT HE'S BROUGHT FORWARD, IN PARTICULAR THE ONES ABOUT HAVING STRS OPERATE IN LOCATIONS THAT HAVE BEEN INCENTIVIZED FOR RESIDENTIAL DEVELOPMENT.

THAT ALSO GIVES ME SOME HEARTBURN AS WELL.

AND THOSE ARE MY COMMENTS BUT I DO WANT TO POSE THAT WE IDENTIFY AREAS FOR LESS REGULATION, TO MAKE IT A LITTLE BIT EASIER TO HAVE REGULATION IN SOME AREAS WHERE WE DO NEED TO FIND THAT BALANCE.

SO EVEN IN MY OWN DISTRICT IF YOU LOOK AT SOME OF THE MAPS THAT SHOW YOU WHERE THERE'S STRS, THERE'S A CLUSTER OF THEM IN MONTICELLO PARK CLOSER TO I-10 AND FREDERICKSBURG.

BEAUTIFUL NEIGHBORHOOD.

WHEN I WAS A KID I WAS HOPING I WOULD GROW UP AND BUY A HOME IN THAT NEIGHBORHOOD.

TODAY I WOULDN'T BE ABLE TO, EVEN THOUGH I HAVE A JOB AND A CAREER -- WELL, AN INCOME.

I CAN'T AFFORD A HOME THERE BECAUSE PROPERTY VALUES HAVE GONE UP SO MUCH.

AND IF A LOT OF THOSE HOMES ARE BEING USED UP AT STR TYPE TWOS THEN THE PRICES GO UP EVEN MORE.

THE DEMAND IS THERE.

THAT'S GREAT FOR THAT NEIGHBORHOOD, BUT THAT'S SOMETHING TO KEEP IN MIND.

THAT'S WHAT YOU ARE EXPERIENCING TOO, COUNCILMAN TREVINO, IS SOME PLACES ARE JUST HARDER TO GET INTO.

WITH THAT, I'LL GO AHEAD AND YIELD THE FLOOR.

THANK YOU, MAYOR.

>> MAYOR NIRENBERG: THANK YOU, COUNCILWOMAN SANDOVAL.

COUNCILMAN BROCKHOUSE.

>> BROCKHOUSE: THANK YOU, MAYOR.

THANKS, SHANNON.

GOOD STUFF.

I LIKE THE WAY YOU STOOD UP THERE STONE FACED.

YOU GOT IT GOING ON.

I APPRECIATE THE WORK YOU'RE DOING.

THANK YOU FOR THAT.

I REALLY DO.

YOU KNOW, I'LL JUST KIND OF TAKE OFF SOME THOUGHTS.

INITIALLY MY GUT INSTINCT IS TO NOT BE VERY SUPPORTIVE OF THIS.

I THINK MORE TIME TO CHEW IT UP AND TALK ABOUT IT AND TO LISTEN TO COUNCILMAN TREVINO'S CONCERNS AND HIS AMENDMENTS.

LOOK, I FALL ON IT STRAIGHT UP ON A PERSONAL PROPERTY RIGHT ISSUE.

THOSE ARE WHERE MY CONCERNS KIND OF BEGAN.

THESE FOLKS PURCHASED THESE PROPERTIES, THEY OWN THEM.

I'M LEERY OF OVERREGULATING AND CREATING AN ENVIRONMENT WHERE CITY HALL OR NEIGHBORS ARE DICTATING OTHER NEIGHBORS' PROPERTY RIGHTS.

NOW THAT BEING SAID, I DO HAVE CONCERNS ABOUT LEGISLATING ACROSS THE CITY TO PROTECT ONE DISTRICT.

A BLANKET-TYPE POLICY IS DIFFICULT FOR ME.

I MAYBE RECEIVED ONE COMMENTARY ON SHORT-TERM RENTALS IN DISTRICT 6 AND IT WAS AN ISOLATED ISSUE THAT WE NEEDED TO CONTROL SOME PARKING STUFF ON.

LO AND BEHOLD THE CODE PROTECTED IT.

WE HAVE THE LAWS IN PLACE TO MANAGE A GREAT MAJORITY OF THE ISSUES WITH REGARDS TO SHORT-TERM RENTALS.

ORDINANCES? WE GOT THAT.

PARKING? WE HAVE THAT.

LAWNS AND CODE COMPLIANCE.

SO THERE ARE ALREADY A LOT OF LAWS ON THE BOOKS THAT PROTECT NEIGHBORHOODS WITH REGARDS TO SHORT-TERM RENTALS.

SO I'M MORE LOOKING FORWARD TO A PATH ON HELPING, AS I CAN SEE IT, HISTORIC NEIGHBORHOODS.

I DON'T KNOW WHAT THAT ANSWER IS BUT I THINK THE COUNCILWOMAN SANDOVAL KIND OF ALLUDED TO IT, COUNCILWOMAN GONZALES DID.

I USED TO WORK IN DISTRICT 1 AS

[01:50:02]

A COUNCIL AIDE.

I WORKED THROUGH A LOT OF THOSE NEIGHBORHOODS.

WHILE I DON'T THINK IT APPLIES TO DISTRICT 6 I WOULD WANT TO FIND A PATH FORWARD TO PROTECTING THE CULTURE AND INTEGRITY OF THEIR NEIGHBORHOODS.

I'M OKAY WITH THAT.

I DON'T KNOW IF THAT'S EVEN POSSIBLE WITH LAND USE AND ZONING RIGHTS AND THAT WHOLE THING, BUT THE CREATION OF OPPORTUNITIES FOR A NEIGHBORHOOD TO CHOOSE THAT AND TO MAYBE DO THAT AND MEET CERTAIN CRITERIA, I WOULD BE OPEN TO THAT DISCUSSION SO THAT WAY NOBODY DRIVES DOWN MADISON AND ALL YOU SEE ARE CARS FROM NEW YORK CITY.

THAT COULD BE A PROBLEM, RIGHT? I GET THAT, AND THEY HAVE WORKED AND CULTIVATED THEIR NEIGHBORHOOD FOR A LONG PERFECT.

PERIOD OF TIME.

DIGNOWITY HILL AS WELL ARE LOOKING FOR OPPORTUNITIES.

I CAN SEE A PATH FORWARD ON PERHAPS REGULATING IN THERE TO PROTECT THE WISHES OF THE GREATER MAJORITY OF THAT COMMUNITY.

THIS CAN'T BE JUST A FEW PROPERTY OWNERS.

I MEAN, KING WILLIAM, IF YOU LOOK AT THEIR HISTORY, AS FAR AS I KNOW, IT'S A VERY ORGANIZED LARGE ORGANIZATION THAT REPRESENTS THE ENTIRE COMMUNITY.

THAT NEIGHBORHOOD IS ALL IN, AND THEY HAVE BEEN FOR DECADES, RIGHT? SO THAT IS A WELL-ORGANIZED TEAM OF INDIVIDUALS THAT ARE LOOKING FOR LAWS AND REGULATIONS TO PROTECT THE NEIGHBORHOOD.

IT'S NOT LIKE IF I CAME INTO ONE OF MY COMMUNITIES AND IT WAS ONE OR TWO HOMEOWNERS THAT WAS UPSET BECAUSE THE YARD LOOKED BETTER NOW BECAUSE THERE'S AN STR TYPE TWO THERE.

I WOULD ASK THAT WE, YOU KNOW, OPEN UP OPPORTUNITIES AND MAKE SURE THAT WE DON'T INHIBIT OTHER DISTRICTS' OPPORTUNITIES TO CREATE THIS TYPE OF GROWTH.

I HAVE SEEN ONE OF THE NEIGHBORHOODS THAT DOES RECEIVE COMPLAINTS, WE HELD THEM ACCOUNTABLE AND THEY MOVED ON.

THEY COULDN'T PARTY LIKE THAT IN THE FRONT.

WE OFTEN HEAR STRS ARE PARTY HOUSES.

TRUTH BE TOLD, I'M AN STR OPERATOR MYSELF.

I DO IT MYSELF IN NEW ORLEANS, NOT IN SAN ANTONIO.

AND NEW ORLEANS, AND PERRY IS LOOKING AT ME NOW BECAUSE HE HAS A PARTY HOUSE.

HE IMMEDIATELY WANTS THE COUNCIL MEMBER DISCOUNT.

>> BROCKHOUSE: I THINK WHAT CAUSED PROBLEMS WAS OVERREGULATION AND IT TURNED NEIGHBOR ON NEIGHBOR.

PEOPLE WERE TAKING PICTURES OF EACH OTHER.

IT BECAME A VERY TOUGH ENVIRONMENT IN MY PIECE OF IT.

THEY ACTUALLY BANNED IT IN THE FRENCH QUARTER.

THE ENFORCEMENT PIECES OF IT AREN'T WORKING AT ALL.

THE ONLY WAY IT IS ENFORCED IS IF RESIDENTS ARE TURNING ON RESIDENTS, TAKING PICTURES.

TRUST ME, THAT'S WHAT IT TURNED INTO.

IT WAS A VERY DIFFICULT ENVIRONMENT.

I ASK THAT YOU LOOK AT WHAT THE LAWS ARE ELSEWHERE BUT WHAT HAPPENED AFTER THEY IMPLEMENTED IT.

WHAT WAS THE IMPACT OF THEIR IMPLEMENTATION OF ONEROUS REGULATION, BRAND NEW REGULATION THAT COMES OVER THE TOP.

I THINK WE HAVE TO BE CONSIDERATE OF GOOD IDEAS WANTING TO PROTECT NEIGHBORHOODS AND THE IMPACT OF THOSE DECISIONS.

I WOULD ASK THAT ANY PROCESS BE ONLINE AND EASY FOR ANYBODY TO APPLY.

IT SHOULD NOT BE PAPER-DRIVEN.

SOMEBODY TOLD ME IT MAY BE A PAPER APPLICATION.

EVERYTHING IS GOING TO BE ONLINE?

>> WE WILL HAVE TO WORK WITH I.T., BUT THAT'S THE GOAL.

WE DON'T WANT TO CREATE A PAPER PROCESS.

WE WANT SOMETHING THAT THEY CAN ONLINE REGISTER, SUBMIT ALL THEIR FORMS. I THINK THAT'S WHAT OUR SHORT-TERM RENTAL OPERATORS DEMAND AS WELL.

>> BROCKHOUSE: PERFECT.

EVERYTHING ONLINE AND MINIMAL INSPECTIONS.

I DIDN'T HAVE TO GET INSPECTED WHEN WE DID IT.

HERE'S THE OTHER FACT FOR PEOPLE WHO AREN'T REALLY -- TRUST ME [INDISCERNIBLE].

THE INTERESTING FACT IS THAT THE MARKET WEEDS OUT BAD OPERATORS.

THAT'S THE BEAUTY OF THE STR PROGRAM AND THE RATING SYSTEMS AND EVERYTHING THAT THEY HAVE IS THAT THEY ARE STARRED, THERE'S COMMENTS, AND YOU SEE WHO THE BAD ACTORS ARE AND THEY ARE WEEDED OUT AND THEY ARE NOT SUCCESSFUL.

I THINK YOU ALREADY HAVE A TIGHT LAYER OF RESTRICTION AROUND THE SHORT-TERM RENTAL TYPE TWOS.

I THINK MINIMAL INSPECTIONS AND FEES THAT MATCH EVERYTHING ELSE WE DO IS IMPORTANT.

WE DON'T WANT TO SINGLE THESE FOLKS OUT FOR LARGER FEES.

IF WE DO IMPLEMENT SOMETHING I WOULD STRONGLY CONSIDER WE GRANDFATHER EVERYBODY.

IF YOU'RE OPERATING IN IT RIGHT NOW YOU'RE GOING TO GET A PASS BECAUSE WE ARE COMING IN AND LAYERING IN ADDITIONAL REGULATION.

I WOULD WANT TO SEE HOW FAR WE CAN STRETCH A GRANDFATHER FOR ANY TYPE OF REGULATION WE IMPLEMENT.

PROTECTING HISTORIC DISTRICTS.

THERE ARE A LOT OF POSITIVES THAT DON'T GET MENTIONED.

NEIGHBORHOOD IMPROVEMENTS, THE TAXES THAT ARE A RESULT OF THIS.

WHAT IT DOES FOR THE UPKEEP OF YARDS, LAWNS, AND THE GOOD FOLKS OPERATING STRS, I DEAL WITH A LOT OF THEM IN NEW ORLEANS AND IT IS A FANTASTIC GROUP OF PEOPLE.

ARE THERE BAD ONES?

[01:55:01]

YES.

NOBODY SAYS AT THE BAD ONES.

DO INCLUDE THOSE.

THE BOARD OF ADJUSTMENT STUFF I THINK IS OVERREACH.

THAT IS ONEROUS AS ALL GET OUT.

I MEAN, APPLYING, ATTESTING TO SAFETY MEASURES, MAYBE AN INSPECTION INITIALLY, THERE'S A PATH FORWARD ON THAT, PERHAPS, BUT WE SHOULD LOOK INTO MAKING SURE WE DON'T HAVE TO PUT THEM IN FRONT OF THE BOA TO USE SOMETHING THEY ALREADY OWN THAT'S THEIR PROPERTY RIGHTS.

AND I THINK THAT WILL WRAP UP MY POINTS.

ON THE INCENTIVES PIECE, IT'S A GOOD POINT.

I NEVER THOUGHT ABOUT IT.

IT DIDN'T POP INTO MY MIND UNTIL I SAW THE COUNCILMAN'S NOTES HERE.

BUT THE PERSON WHO PURCHASES ISN'T NECESSARILY THE ONE RECEIVING THE INCENTIVES.

THE DEVELOPER IS GETTING THE BULK OF THOSE INCENTIVES AND THE PROPERTY OWNER IS COMING IN.

ARE THEY GETTING SOMETHING CHEAPER? WE HAVE TO EXAMINE THAT.

IF I COME IN AND PURCHASE SOMETHING THAT HAS RECEIVED AN INCENTIVE, I OWN IT AT THAT POINT.

I GUESS BANNING THAT -- I DON'T KNOW.

I'M OPEN FOR A DISCUSSION ON HOW INCENTIVES PERHAPS A LITTLE MORE CLEAR AS TO WHAT THEY CAN OR CANNOT DO WITH THE PROPERTY.

I DON'T WANT TAX DOLLARS, YOU KNOW, NOT ONLY ARE THEY REAPING THE BENEFITS OF THE INCENTIVES -- I DON'T KNOW.

WE GOT TO DIG A LITTLE DEEPER.

I DON'T WANT TO PENALIZE THE OWNER IF THEY PURCHASE SOMETHING THAT RECEIVED AN INCENTIVE AND THEY CAN'T TURN AROUND AND DO ANYTHING WITH IT.

ON THE WHOLE I THINK WE NEED TO BE VERY CAREFUL WITH THIS TYPE OF REGULATION.

THE MORE LAWS WE PASS AND OVERREGULATE, I THINK THE MARKET ECONOMY REALLY DRIVES THIS.

SAME THING WITH AN UBER PIECE, RIGHT? THIS COUNCIL A COUPLE OF YEARS AGO WORKED UP AND DOWN TO MAKE UBER AS EASY AS POSSIBLE ON THIS APP-BASED TYPE LIFESTYLE WE'RE LIVING IN.

THAT WEEDS OUT A LOT OF BAD DRIVERS.

WE HAVE SEEN SUCCESS IN THERE.

I GET IN A LOT OF BAD UBER CARS AND THE RATING SYSTEM AND ALL THESE THINGS POP UP.

THERE'S A LOT OF TOOLS WITH AIRBNB, VRBO THEY ARE HOLDING PEOPLE TO THE LINE.

WE HAVE THOSE LAWS ON THE BOOKS BUT I THINK WE SHOULD FIND A PATH FORWARD TO PROTECT KING WILLIAM, LAVACA, AND THE DISTRICTS THE COUNCILMAN IS MOST CONCERNED ABOUT BUT I DO NOT WANT TO OVERREGULATE THE CITY.

LET'S SEE IF WE CAN GET SPECIFIC TO HELP HIM AND THE NEIGHBORHOODS THAT MAKE THE MOST SENSE IN THAT DISTRICT, AND DISTRICT 2, DIGNOWITY HILLS.

AND DISTRICT 3.

AND JOHN COURAGE AND CLAYTON PERRY.

THANK YOU, MIKE.

I APPRECIATE THE GOOD WORK.

>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN BROCKHOUSE, COUNCILMAN PERRY.

>>.

>> PERRY: THANK YOU, SIR.

WHEN IS THE NEXT AVAILABLE DATE? THANK YOU VERY MUCH.

I JUST WANT TO SAY THAT YOU AND DEVELOPMENT SERVICES SHOULD BE THE MODEL OF HOW TO DO THIS.

YOU KNOW, THE PROCESS THAT YOU USE TO TAKE THIS FROM BASICALLY NOTHING TO WHERE WE ARE TODAY.

THE PROCESS WAS GREAT AND I APPRECIATE THE UPFRONT INFORMATION YOU PROVIDED TO THE COUNCIL FOLKS HERE AND PLENTY OF TIME TO DIGEST IT, LOOK AT IT, AND COME BACK TO YOU WITH COMMENTS.

AND HERE WE ARE AT THE B SESSION AND DISCUSSING IT A LITTLE BIT FURTHER.

SO I APPRECIATE THE PROCESS THAT YOU WENT THROUGH AND YOUR STAFF TO GET TO THIS POINT.

SO HAVING SAID THAT, YOU KNOW, I THINK ABOUT THIS AND I'M A PROPERTY RIGHTS TYPE OF PERSON ALSO.

BUT, YOU KNOW, WE DO HAVE TO CONSIDER NEIGHBORHOODS AT SOME LEVEL.

BUT ALL IN ALL, YOU KNOW, IT'S A PROPERTY RIGHTS ISSUE.

TO ME, THAT'S THE OVERRIDING ISSUE ON THIS.

I THINK ABOUT, LIKE, DOWN AT THE COAST.

YOU KNOW, IT'S NOTHING BUT BED AND BREAKFAST OR SHORT-TERM RENTALS ALL ALONG THE COAST.

AND THEY'RE DOING GREAT.

YOU KNOW, I HAVE GONE THERE QUITE A FEW TIMES AND USED THOSE.

THIS IS A CHANGING WORLD AND THIS IS A CHANGING OPPORTUNITY.

I THINK WE NEED TO LOOK AT THIS AS AN OPPORTUNITY HOW BEST WE CAN USE THIS TO OUR ADVANTAGE HERE IN SAN ANTONIO.

AND CHECKING BACK WITH MY STAFF, SINCE DISTRICT 10 WAS THE ONE WHO STARTED THIS CCR PROCESS, WHAT WAS THE REAL REASON TO DO THIS? WELL, THE REAL UNDERLYING ISSUE HERE WAS, YOU KNOW, DISTRICT 10 DIDN'T HAVE AN ISSUE.

WE DIDN'T HAVE AN ISSUE WITH IT.

I THINK WE HAD ONE BAD RENTER THAT WAS TAKEN CARE OF IN DISTRICT 10 THROUGH EXISTING ORDINANCES TO MOVE THROUGH THAT

[02:00:05]

ISSUE.

BUT, YOU KNOW, WE LOOKED AT THAT AND HOW IT WAS THE UNFAIRNESS ABOUT THEM BEING ABLE TO RENT OUT AT MUCH CHEAPER PRICES AND AVOIDING THOSE TAXES, THE TAX REQUIREMENTS.

SO THAT WAS THE REAL UNDERLYING ISSUE.

IT ALWAYS COMES BACK TO THE MONEY, FOR SOME REASON.

THAT'S WHAT IT -- TO ME, THAT'S WHAT IT COMES BACK TO.

BUT SPEAKING OF THE HOT TAX, IN OUR EXISTING ORDINANCES THERE'S NOTHING REQUIRING THEM TO PAY THAT TAX AT THIS POINT, IS THAT HOW THEY GET BY WITHOUT DOING IT? ARE THEY VIOLATING SOMETHING?

>> THEY'RE VIOLATING.

IT'S VERY CLEAR AT THE STATE AND LOCAL ORDINANCES REGARDING THE HOT THAT THEY SHOULD BE PAYING IT.

IF YOU OPERATE AN STR RIGHT NOW YOU SHOULD BE PAYING THE TAXES THAT I HAD PUT UP HERE.

IF THERE'S ANY SPECIFIC QUESTIONS, I'LL ASK TROY TO COME UP.

BUT THAT REALLY HASN'T BEEN DEBATABLE THROUGH THE TASK FORCE PROCESS.

VERY EARLY ON THAT WAS A QUESTION WE POSED AND EVERYBODY, INCLUDING THE SHORT-TERM OPERATORS THAT CAME TO OUR MEETINGS THAT SAID, NO, WE'RE SUPPOSED TO BE PAYING IT.

OR I KNOW OTHERS THAT AREN'T, I WANT A SYSTEM TO LEVEL THE PLAYING FIELD, ESPECIALLY ON THE HOT ISSUE.

>> PERRY: OKAY.

IF THEY'RE NOT PAYING THEM NOW AND THEY ARE VIOLATING SOMETHING OUT THERE, WHAT'S THIS -- I MEAN, IS THIS GOING TO MAKE THEM PAY IT? I MEAN, WHAT BETTER SUCCESS RATE ARE WE GOING TO GET OUT OF THIS ORDINANCE VERSUS WHAT THEY ARE VIOLATING NOW?

>> SURE.

WELL, IF WE WERE TO CREATE AN ORDINANCE THAT REQUIRES YOU TO COME INTO THE CITY AND AT LEAST REGISTER THROUGH PERMITTING, THAT ITSELF IS A REGULATION.

IF YOU DON'T DO THAT THAT'S PUNISHABLE BY CLASS C MISDEMEANORS.

BUT YOU WOULDN'T GET THE PERMIT THROUGH US UNLESS WE VALIDATE WITH THEM AND FINANCE THAT THEY HAVE STARTED PAYING, REGISTERED.

WE WILL START COLLECTING.

IT IS A COMPLIANCE TOOL THAT WE WILL USE FOR THE HOT, EVEN THOUGH THE ORDINANCE IS, YOU KNOW, THE SAFETY OF THE GUESTS, SAFETY OF THE NEIGHBORHOOD.

BUT THAT'S HOW IT WILL WORK.

WE BELIEVE IT WILL INCREASE OUR COMPLIANCE RATES EFFORTS ON THE HOT TAX.

>> PERRY: BUT AT THE END OF THE DAY THEY STILL DON'T HAVE TO COME IN AND REGISTER.

EVEN IF WE HAVE THIS ORDINANCE, THEY CAN STILL GET BY WITHOUT PAYING THE TAX?

>> WELL, THEY WOULD BE IN VIOLATION OF NOT ONLY THE HOT TAX BUT THE PERMITTING.

WE WOULD GO AND USE THAT ADDITIONAL TOOL TO GET THEM IN LINE.

>> PERRY: BUT THEY ARE VIOLATING THINGS NOW.

>> SURE.

YEAH, WHENEVER WE DO THAT.

THAT IS PART OF THE CONCERN.

THERE'S ALWAYS GOING TO BE SOMEONE WHO WANTS TO GO UNDER THE SYSTEM AND TRY TO BEAT THE SYSTEM.

>> PERRY: YEAH.

I'M JUST ASKING BECAUSE I'M SAYING, WELL, IS THIS GOING TO -- IS THIS REALLY GOING TO BE THAT MUCH OF A DIFFERENCE TO GET THEM TO COME IN AND PAY THOSE TAXES?

>> YEAH, WE BELIEVE SO AND CERTAINLY TIME WILL TELL.

BUT WE BELIEVE SO.

>> REPORT THEM TO THE I.R.S.

>> PERRY: AND THE B&B, HAS THAT NOT ALWAYS CONSIDERED A SHORT-TERM RENTAL? WHY ARE WE TALKING B&B SEPARATELY.

>> THE B&B ORDINANCE IN THE LATE '90S, ALMOST 20 YEARS OLD, CERTAINLY CATERED TO WHAT WAS HAPPENING AT THAT TIME.

AND CERTAINLY THERE ARE SOME OF THEM TODAY.

THOSE ORDINANCES, IT DEFINES A BED AND BREAKFAST -- I HAVE THE DEFINITION HERE.

AN ESTABLISHMENT THAT SUPPLIES TEMPORARY ACCOMMODATION TO OVERNIGHT GUESTS FOR A FEE.

BUT IT DOESN'T GO FAR ENOUGH IN THE DIFFERENT CATEGORIES.

WHAT IS TEMPORARY? IT'S NOT DEFINED.

IS IT TWO DAYS, TEN DAYS, 30 DAYS, 60 DAYS? WE HAVE THAT.

THE HOTEL DEFINITION WE HAVE IN OUR CODE IS ALSO VERY SIMILAR TO THAT IN TERMS OF PROVIDING ROOMS WITH TRANSIENT GUESTS, IE TEMPORARY GUESTS, THAT PROVIDE FOOD OR LODGING.

BED AND BREAKFAST SEEMS TO IMPLY THAT YOU BRING THEM IN, LET THEM STAY, PROVIDE THEM SOME FOOD.

SOME SHORT-TERM RENTALS, THAT'S ACTUALLY NOT THEIR MODEL.

WHILE THERE ARE VERY GOOD SIMILARITIES WE DON'T BELIEVE IT ADDRESSES WHAT WE ARE SEEING THERE.

AND YOU HAVE HEARD STORIES ABOUT HOW SHORT-TERM RENTALS HAVE GROWN.

WE HAVE 30 BED AND BREAKFASTS IN THE CITY RIGHT NOW AND NOW WE ARE TALKING ABOUT 1300, 2,000 PEOPLE RENTING OUT ROOMS OR THEIR WHOLE HOUSE.

IT JUST DOESN'T ADEQUATELY CAPTURE WHAT WE'RE SEEING AND WHAT WE NEED TO HAVE ON THE BOOKS.

I THINK THAT'S THE DISCUSSION.

[02:05:01]

BUT THERE WAS A LOT OF DEBATE ON THAT ISSUE.

NOT ONLY THROUGH THE TASK FORCE -- AND THAT'S WHY WE UTILIZED SOME OF THE B&B LANGUAGE ABOUT DENSITY REQUIREMENTS AND STUFF, BECAUSE THERE ARE SOME SIMILARITIES.

>> PERRY: OKAY.

THE WHOLE LEGALITY ISSUE OF THIT WHAT THE STATE WILL COME OUT WITH THAT WILL NEGATE A LOT OF THIS TIME AND EFFORT THAT WE'VE SPENT ON THIS PARTICULAR ISSUE.

SO I'M CONCERNED ABOUT THAT IN THIS NEXT LEGISLATURE.

I JUST, YOU KNOW, I'M CONCERNED ABOUT THAT THAT WE ALIGN OURSELVES AGAINST THE STATE ON A LOT OF ISSUES.

HAVING SAID THAT, BUT HASN'T AUSTIN GONE THROUGH SOME LEGAL BATTLES ALREADY?

>> YES.

SO AUSTIN PASSED AN ORDINANCE SEVERAL YEARS AGO, MAYBE 2013.

IT'S BEEN AROUND FOR FIVE OR SIX YEARS.

SO THEY HAVE GONE THROUGH A COUPLE ITERATIONS BECAUSE THEY HAVE BEEN CHALLENGED IN COURT.

I THINK THEY ARE CURRENTLY IN COURT, I BELIEVE, ON THE CURRENT ORDINANCE.

SO, YOU KNOW, THAT'S ONE OF THE FEARS OF ANY ORDINANCE THAT WE PASS, CERTAINLY WITH OUR LEGISLATURE AND WHAT WE HEARD LAST YEAR AT THE STATE PROCESS WAS THEY THOUGHT SOME CITIES WERE OVERREGULATING SOME OF THAT PROPERTY RIGHTS ISSUES, AND THEY ARE BEING CHALLENGED.

IT ISN'T FULLY RESOLVED AT THE COURT LEVEL.

AUSTIN AND SOME OTHER CITIES AROUND THE COUNTRY WITH DIFFERENT PROPERTY LAWS.

YEAH, THEY'RE GOING THROUGH SOMETHING SIMILAR.

>> PERRY: SO HOW MANY LAWSUITS HAVE THEY GONE THROUGH TO DATE?

>> IS IT TWO? I'M SORRY.

I'M GOING TO LOOK TO ED FOR THAT, OR ANDY.

>> GOOD AFTERNOON, COUNCILMAN.

AUSTIN HAD REGULATIONS GOVERNING STRS THAT HAD MORE LAYERS TO IT THAN OURS DID.

THEY WERE SUED.

THEY WON IN DISTRICT COURT BUT THAT WAS NOW APPEALED AND ONE OF THE PEOPLE THAT HAVE NOW PARTICIPATED IN THAT APPEAL IS THE STATE OF TEXAS.

SO THAT'S WHERE THEY'RE AT RIGHT NOW.

IT'S IN THE APPELLATE PROCESS.

THEY WON AT THE DISTRICT COURT LEVEL.

OR THEIR STATUTE WAS HELD VALID.

>> PERRY: ANDY, IS THERE ANY REASON TO BELIEVE THAT IF WE COME UP WITH -- LET'S SAY WE PASS THIS NOW, THAT WE WOULDN'T FIND OURSELVES IN THE SAME BOAT?

>> WELL, IF WE STRIKE THE BALANCE THAT WE HAVE BEEN TALKING ABOUT, OBVIOUSLY WE WOULD EXPECT THAT WE WOULD STRIKE THE RIGHT BALANCE.

OBVIOUSLY IT DOESN'T COST MUCH TO FILE A LAWSUIT, COUNCILMAN, SO I CAN'T GUARANTEE THERE WON'T BE ANY CHANGES.

BUT BEFORE WE WOULD PASS OR RECOMMEND ANY ORDINANCE WE WOULD FEEL CONFIDENT THEY WOULD PASS MUSTER.

>> PERRY: MY PREDICTION IS, YES, WE WILL GO DOWN THAT SAME ROUTE.

MY PREDICTION.

WITH THE -- YOU KNOW, THERE WAS A COMMENT EARLIER ABOUT UNINTENDED CONSEQUENCES.

WHAT I HAVE SEEN IN THE PAST IS THAT YOU GET MORE UNINTENDED CONSEQUENCES BY PASSING ORDINANCES AND MORE REGULATION THAN WHAT YOU SEE NOT DOING THOSE TYPES OF THINGS AUDIO].

SO, YEAH, I'M CONCERNED ABOUT THE UNINTENDED CONSEQUENCES GOING THE OTHER WAY.

AND IT'S JUST ANOTHER LAW, ANOTHER REGULATION THAT WE HAVE TO LIVE WITH.

IF THIS CONTINUES TO GO THROUGH AND THESE AMENDMENTS AND EVERYTHING ELSE THAT WE'VE BEEN TALKING ABOUT, WILL THEY GO BACK TO THE COMMITTEE AGAIN AND START THROUGH THE COMMITTE PROCESS?

>> WELL, OUR GOAL TODAY WAS WE'LL LIKELY HAVE TO TAKE THIS BACK AND DO SOME MORE WORK.

THE NEXT AVENUE WOULD LIKELY BE A COMMITTEE OR WHATEVER YOU SO CHOOSE, THIS BODY.

BUT WE WOULD LOOK FOR THAT GUIDANCE FROM YOU ALL.

>> PERRY: SO CAN YOU SUMMARIZE WHAT THE MAIN STICKING POINTS RIGHT NOW AT THE COMMITTEE LEVEL IS.

WHAT ARE THE MAIN STICKING POINTS?

>> YOU'RE REFERRING TO IF WE GO TO A COUNCIL COMMITTEE? IS THAT WHAT YOU'RE TALKING ABOUT?

>> NO, IN YOUR WORKING GROUP.

>> SURE.

I THINK I HIGHLIGHTED -- THE HIGHLIGHTS OF THE ORDINANCE THAT WE TALKED ABOUT, CERTAINLY THE ZONING PIECE, BOA, SHOULD THEY BE ALLOWED BY RIGHT EVERYWHERE OR SHOULD THEY BE REGULATED IN

[02:10:02]

CERTAIN NEIGHBORHOODS JUST IN GENERAL.

WE'LL CALL THAT THE ZONING ISSUE, IF YOU WILL.

THAT'S CERTAINLY ONE OF THE KEY HIGHLIGHTS.

AND WE'VE TRIED TO PUT FORWARD THAT MIDDLE GROUND BOA EXCEPTION PROCESS THAT'S NOT REALLY ZONING BUT IT'S NOT ALLOWING EVERYTHING BY RIGHT.

DENSITY, RIGHT? HOW MANY IN A CERTAIN NEIGHBORHOOD, ESPECIALLY THE TYPE TWOS AND BED AND BREAKFAST AND THOSE TYPES OF THINGS.

CLEARLY A BIG ISSUE THAT WAS STILL DEBATED.

THE WHOLE PERMITTING PROCESS AND FEES.

THERE ARE MANY WHO FEEL THE FEES THAT WE ARE PROPOSING, EVEN THOUGH THEY ARE SIMILAR TO OTHER PERMITTINGS INSPECTIONS ARE TOO MUCH FOR SOMEBODY WHO WANTS TO RENT OUT A ROOM.

I THINK THOSE ARE SOME OF THE HIGHLIGHTS OF WHAT WE'RE LOOKING AT RIGHT NOW.

>> PERRY: IF THIS GOES THROUGH S PROPERTY RIGHTS, BUT IF THIS CONTINUES TO GO THROUGH I'M CERTAINLY FOR THE SELF-INSPECTION PORTION AND REDUCING THOSE FEES.

>> SURE.

>> PERRY: YOU KNOW, WERE YOU ABLE TO FIND OTHER CITIES THAT HAVE A SELF-INSPECTION? DID THEY HAVE PROBLEMS?

>> WE MIGHT HAVE SUBMITTED THAT TO YOUR OFFICE, BUT THERE ARE SOME THAT DO IT.

THEY DIDN'T REPORT ANY PROBLEMS. STILL RELATIVELY NEW ORDINANCES BUT THEY HAVEN'T HAD ANY PROBLEMS WITH THE IDEA OF SELF-REPORTING.

IT'S A PRETTY SIMPLE CHECKLIST.

YOU CERTIFY, YOU DON'T HAVE TO BE AN ENGINEER OR ANYBODY TO KNOW IF YOU HAVE A SMOKE DETECTOR OR BASIC SAFETY ITEMS WE HAVE IN OUR HOME.

SO YOU WOULD CERTIFY THAT AND YOU ACKNOWLEDGE YOU HAVE TO MAINTAIN THEM.

AND THE UNDERSTANDING BEING THAT IF WE GET CALLED WITH A COMPLAINT THEN THE CITY INSPECTOR WITH A CODE OFFICER WOULD GO IN AND VERIFY TO CORRECT.

WE DID FIND A COUPLE OF CITIES, I WANT TO SAY NEW ORLEANS MIGHT HAVE BEEN ONE OF THEM, OR DENVER.

THAT'S RIGHT, COUNCILMAN, YOU MENTIONED THAT.

IT WAS PRETTY EFFECTIVE.

>> PERRY: I'M CERTAINLY IN FAVOR OF A SELF-INSPECTION OPPORTUNITY VERSUS SENDING INSPECTORS INTO ALL THESE PLACES AND BEING INTRUSIVE INTO PEOPLE'S HOMES, THAT KIND OF THING.

IF THIS CONTINUES TO MOVE FORWARD.

THANK YOU VERY MUCH, MIKE.

APPRECIATE IT.

THANK YOU, SIR.

APPRECIATE THE OPPORTUNITY.

>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN PERRY.

COUNCILMAN SHAW.

>> SHAW: THANK YOU, MAYOR.

I'LL KEEP THIS BRIEF.

I HAVE READ THE ORDINANCE SEVERAL TIMES.

I HAVE DISSECTED IT FROM COMMITTEE TO TODAY.

I HAVE A HARD TIME WITH IT IN TERMS OF PROPERTY RIGHTS.

YOU KNOW THAT.

WE HAD A CONVERSATION ABOUT THAT.

I HONESTLY FEEL THAT SOMEONE LIVING IN THEIR HOME THEY CAN DO WHAT THEY WANT WITH IT AS LONG AS IT IS LEGAL.

THAT'S WHAT TYPE ONE DOES.

EVEN IF IT'S A TYPE ONE OR TWO, IT IS STILL RESIDENTIAL.

IT DOESN'T CHANGE THE ZONING USE CURRENTLY.

>> CORRECT.

CORRECT.

>> SHAW: I THINK IT WAS BROUGHT UP WITH MY COLLEAGUES, BECAUSE WE HAVE A LOT OF THESE IN D2.

WE HAVE A LOT, ESPECIALLY IN THE DIGNOWITY AREA, BECAUSE OF THE PROXIMITY TO THE ALAMODOME AND AT&T CENTER.

A LOT OF THESE HOMES WERE AT ONE TIME VACANT LOTS OR DISTRESSED HOMES AND NOBODY WAS LIVING IN THEM.

PEOPLE CAME IN AND PURCHASED THEM AND RENOVATED AND NOW THEY LOOK GREAT.

SO I UNDERSTAND MY COLLEAGUE'S PERSPECTIVE IN DISTRICT 5, COUNCILWOMAN GONZALES, REGARDING THAT.

BECAUSE IT'S REALLY TURNING AROUND COMMUNITIES.

I LIVE NEXT DOOR TO A QUOTE, UNQUOTE TYPE TWO.

WHAT'S REALLY COOL ABOUT IT IS WE MEET NEW PEOPLE ALL THE TIME.

IT'S MEETING DIFFERENT PEOPLE.

I REALLY DON'T HAVE A PROBLEM WITH THE TYPE TWO.

ALSO WITH THE TYPE TWO WHAT I REALIZED IS THAT MANY TIMES THEY ARE INHERITED PROPERTIES.

SO SOMEONE INHERITS THE PROPERTY AND CAN'T AFFORD TO PAY THE TAXES ON THE PROPERTY, THEREFORE THEY AIRBNB JUST TO KEEP IT IN THE FAMILY.

WE WANT TO PROTECT THOSE LEGACY HOMES, THOSE LEGACY HOMEOWNERS.

BUT THEY CAN MAINTAIN THAT OWNERSHIP.

I THINK THAT'S VERY IMPORTANT TO KEEP IN CONSIDERATION.

HAVE WE EVER DISCUSSED WITH AIRBNB TO ESTABLISH THEM BEING IN CONTROL OF THE HOT TAX, LIKE THEY DO IN OTHER CITIES AND STATES?

>> YEAH, I REMEMBER WHEN WE TALKED WITH THEM AT THE STATE AND THEY DID TALK TO US SAYING WE COULD LOOK AT THAT WITH CITIES IF YOU GET TO THAT ROUTE, YOU WANT TO GO THAT.

WHILE WE DIDN'T TAKE IT MUCH FURTHER THAN THAT BECAUSE WE DIDN'T KNOW WHAT WE WERE GOING TO DO HERE.

I THINK THAT'S SOMETHING THAT AIRBNB AND MAYBE SOME OTHER PLATFORMS OUT THERE ARE WILLING TO DO TO MAKE IT EASY FOR PEOPLE NOT ONLY TO PAY BUT TO REMIT THOSE, AS THEY DO WITH THE STATE, BUT THE CITY.

WE WOULD WANT TO FURTHER

[02:15:01]

INVESTIGATE THAT WITH OUR FINANCE AND HOT COLLECTIONS.

I THINK THEY WOULD BE OPEN TO IT.

THEY HAVE DONE IT WITH OTHER CITIES OUTSIDE OF TEXAS.

I THINK RIGHT NOW ONLY TEXAS STATE IS INSIDE TEXAS, THEIR CONNECTION TO DO THAT.

AND THAT'S AIRBNB-SPECIFIC.

>> SHAW: I THINK THAT'S A BETTER WAY TO HANDLE THIS THING BECAUSE IT KEEPS US OUT OF IT.

WE ALSO WANT TO PROTECT THOSE NEIGHBORHOODS.

WE CAN DO THAT THROUGH DEED RESTRICTIONS.

WHEN SOMEONE SELLS THEIR HOME THEY CAN PUT INTO A DEED RESTRICTION CERTAIN LANGUAGE THAT PROTECTS THOSE HOMES OR NEIGHBORHOODS.

I'M VERY HESITANT OF US GETTING INVOLVED.

ANOTHER QUESTION, I GUESS FOR THE LEGAL TEAM.

SO ARE WE -- SO CAN A DEED RESTRICTION, EITHER THROUGH THE HOMEOWNERS ASSOCIATION OR THE SELL OF THE HOME GOVERN OR DICTATE THE LAND USE OF THAT PROPERTY?

>> THAT IS SOMETHING THAT DEED RESTRICTIONS CAN ENCOMPASS.

WE, THE CITY, DON'T IMPOSE THOSE, BUT INDIVIDUAL PROPERTY OWNERS OR IF A NEIGHBORHOOD ASSOCIATION CAN GET THE NEIGHBORHOOD TO JOINTLY COME TOGETHER AND CREATE -- CLEARLY IN THE NEWER NEIGHBORHOODS THEY ARE IN PLACE.

THAT IS ONE AREA THAT'S BEING CONTESTED IN SOME OF THE STR LITIGATION WHETHER OR NOT IT'S CLEAR.

BUT IF THEY CREATE THE CLEARED DEED RESTRICTIONS, THAT WOULD TAKE CARE OF IT.

SOME OF THE OLDER DEED RESTRICTIONS THAT ARE UNCLEAR, THAT'S WHERE THE PROBLEMS ARE.

>> SHAW: SECONDLY, I HEARD A GOOD IDEA ABOUT REGULATING CERTAIN AREAS, MAYBE HISTORIC TO NON-HISTORIC.

IS THAT ENFORCEABLE?

>> IT'S NOT.

THE STATE STATUTE FOR ZONING REQUIRES THAT EVERY ZONING DISTRICT BE THE SAME.

WHICH MEANS THAT ALL R-6 ZONING DISTRICTS HAVE TO HAVE THE SAME REGULATIONS.

SO YOU CAN SAY NO STRS IN R-6 BUT YOU CAN ALLOW THEM IN R-5.

WHAT YOU CANNOT DO IS SAY CITY COUNCIL DISTRICT 1, NO STRS.

BUT YOU CAN ALLOW THEM IN DISTRICT 2.

BECAUSE YOU HAVE THOSE SAME ZONING DISTRICTS OVERLAPPING.

BUT THROUGH THE ECONOMIC INCENTIVES, DEFINITELY WHERE WE ARE GOING TO INCENTIVIZE WE CAN DO THAT.

>> I THINK IT'S A GOOD IDEA WHEN WE INCENTIVIZE ANY CONSTRUCTION, WHAT DOES THAT LOOK LIKE.

I WOULD LIKE TO SEE THAT HAPPEN INSTEAD OF US INDIVIDUALLY TACKLING THIS ISSUE.

THIS IS A VERY COMPLICATED TOOL AND OUR NEIGHBORHOODS ARE CHANGING ALL THROUGHOUT THE CITY.

WE NEED TO MAKE SURE WE MAKE THE RIGHT STEP.

LIKE I SAID, I HAVE A HARD TIME DIGESTING THIS JUST BECAUSE OF PROPERTY RIGHTS.

YOU KNOW, PEOPLE WANT TO OWN THEIR HOME AND THEY CAN OWN SEVERAL HOMES.

AIRBNB IS THE WAY THEY PAY THEIR BILLS, WHATEVER.

THAT'S THEIR RIGHT TO DO.

I THINK WE SHOULD HAVE FURTHER DISCUSSION IN TERMS OF POLICY AND HOW WE DIRECT CITY STAFF, BUT I'M DEFINITELY NOT READY TO MOVE FORWARD WITH THIS TODAY.

THANK YOU, MAYOR.

>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN SHAW.

COUNCILWOMAN SANDOVAL.

>> SANDOVAL: THANK YOU, MAYOR.

I WILL BE BRIEF.

I REALIZE THIS IS MY SECOND TIME AT THE PLATE HERE.

JUST REAL QUICK, MIKE, HOW MUCH TIME IS THE BOA SPENDING IN MEETINGS RIGHT NOW, WOULD YOU SAY?

>> IT CERTAINLY VARIES DEPENDING ON HOT CASES OR NOT.

BUT, YOU KNOW, AVERAGE, THREE, FOUR HOURS EASY.

>> SANDOVAL: A WEEK? A

>> SHANNON: WE HAD ONE JUST THE OTHER DAY THAT WENT THROUGH DINNER.

SOME ARE A LOT OF CONSENT AGENDA ITEMS AND, YOU KNOW, TYPE OF THING, SO.

>> SANDOVAL: SO I GUESS I'D WANT TO ALSO AT SOME POINT WHEN WE GET A FUTURE UPDATE THINK ABOUT WHAT KIND OF ADDITIONAL BURDEN WE'LL BE PUTTING ON THE BOA WITH THESE COMING FORWARD BECAUSE I IMAGINE IT'S GOING TO BE A LOT UP FRONT BEFORE IT DIES DOWN.

>> SHANNON: YEP.

>> SANDOVAL: REAL QUICK, I WOULD LIKE TO -- IS THERE A DISTINCTION AMONG THE TYPE 2S DEPENDING ON HOW -- HOW MUCH OF THE TIME OF A GIVEN YEAR OR MONTH THEY ARE RENTED OUT?

>> SHANNON: NOT IN OUR PROPOSED ORDINANCE.

SO SOME OF THAT WAS DISCUSSED, THE DIFFERENCE BETWEEN SOMEONE THAT -- FOR EXAMPLE, IF IT'S MY HOUSE AND I GO ON VACATION FOR TWO WEEKS, COUPLE TIMES A YEAR, IS THAT DIFFERENT THAN SOMEONE DOING IT 26 OR 28 OR 50 WEEKENDS A YEAR, WHETHER IT'S MY HOUSE OR NOT.

I MEAN, RIGHT NOW, IT DOESN'T DISTINGUISH.

SOME OF THE CHALLENGES ARE ENFORCEMENT AND HOW DO YOU REGULATE THAT TO SOME EXTENT, BUT THE PROPOSAL RIGHT NOW IS IF IT'S YOUR HOMESTEAD, IT'S A TYPE 1.

IF IT'S NOT, IT'S A TYPE 2, THAT KIND OF SIP -- SIMPLE.

>> SANDOVAL: OKAY.

SO I COULD RENT OUT MY WHOLE HOME FOR THREE WEEKS AND IT WOULD BE CONSIDERED A TYPE 1.

>> SHANNON: YEAH, I THINK I MISSPOKE ON THE FIRST ONE.

IT'S YOUR HOMESTEAD, IT WOULD STILL BE A TYPE 1 IN OUR PROPOSED ORDINANCE.

[02:20:01]

>> SANDOVAL: OKAY.

AND THE LAST THING I WOULD LIKE TO REITERATE, I WOULD LIKE TO SEE SOME SORT OF PROPOSAL COME BACK THAT DOES TREAT AREAS DIFFERENTLY.

I REALIZE THERE ARE SOME LIMITATIONS WITH ZONING, BUT I HOPE YOU'LL BE CREATIVE ABOUT WHETHER IT'S REGULATORY OR WHETHER IT'S INCENTIVE-BASED, BUT, YOU KNOW, THERE ARE DIFFERENT NEEDS IN DISTRICT 1 FROM DISTRICT 5 AND I THINK WE WANT TO TRY TO MEET THOSE NEEDS.

THANK YOU.

>> SHANNON: SURE.

>> MAYOR NIRENBERG: THANK YOU, COUNCILWOMAN SAN SANDOVAL, COUNCILMAN BROCKHOUSE.

>> BROCKHOUSE: THANK YOU, I HAD ONE ADDITIONAL QUESTION FOR ANDY, THE CITY ATTORNEY.

YOU AND I TALKED ABOUT THIS, I JUST WANT TO DISCUSS THE REGULATION VERSUS THE RISK TO THE CITY.

SO CAN YOU WALK US THROUGH THE CONVERSATION YOU AND I HAD ABOUT THE MORE REGULATION WE PUT, THE EXPOSURE FOR THE CITY, AND ANY CONCERNS YOU MAY HAVE WITH THAT.

>> AS WE LOOKED, I MEAN, WE LOOKED AT LOOKING AT THE OTHER CITIES AND LEGAL CHALLENGES THEY FACE, IT WAS PRETTY CLEAR THAT TO THE EXTENT THAT WE'RE MORE LAYERS OF REGULATION, IN OTHER WORDS, THE MORE, FOR LACK OF A BETTER TERM ONEROUS THE REGULATION WAS, THE MORE LIKELIHOOD THAT THEY FACED SOME LEGAL CHALLENGE, WHICH IS WHAT WE'RE LOOKING TO DO, COUNCILMAN, IS STRIKE THE RIGHT BALANCE.

CLEARLY, THE MORE YOU LAYER ON THE RISK OF IT BEING CHALLENGED GOES UP AS WELL.

>> BROCKHOUSE: I APPRECIATE THAT, ANDY.

I JUST WANTED TO MAKE SURE THAT THE REST OF MY COLLEAGUES HAD HEARD THAT -- YOU KNOW, THE MORE LAYERING ON HERE, THE MORE WE COME AT THIS, THE MORE SUSCEPTIBLE WE ARE TO LITIGATION.

IT'S HAPPENED IN OTHER CITIES, AND I THINK IT'S WORTH NOTING AND BEING MINDFUL OF THOSE COSTS ASSOCIATED WITH THE LITIGATION AND MAKING SURE THAT BALANCE DOESN'T GET US SUED.

WE GET SUED FOR POTHOLES, A BUNCH OF DIFFERENT STUFF, BUT THIS HAS -- THIS IS A MONEY-MAKING VENTURE, IT'S A PROFIT VENTURE FOR A LOT OF FOLK, SOMETIMES IT'S THE DIFFERENCE OF MAKING THEIR PAYMENTS OR NOT, AND IT REALLY CUTS TO THE CORE OF AN OPERATOR'S ABILITY, SO I WOULD ASK THAT WE STRIKE A GOOD BALANCE ON REGULATION AND DON'T FORGET THE RISK ASSOCIATED WITH US GETTING INTO LITIGATION OVER THIS.

I APPRECIATE IT.

THANK YOU, SIR.

>> MAYOR NIRENBERG: THANK YOU COUNCILMAN BROCKHOUSE.

COUNCILMAN TREVINO.

>> TREVINO: THANK YOU, MAYOR, AND, AGAIN, MIKE, THANKS AGAIN.

I THINK YOU'VE DONE A GOOD JOB UP THERE.

I THINK THE ONLY CRITICISM IS THAT THOSE ROOFS ARE BLACK.

[LAUGHTER] INSIDE JOKE.

>> TREVINO: YOU KNOW, I JUST WANT TO SAY -- I WANT TO THANK MY COLLEAGUES, TOO, BECAUSE EARLIER BEFORE THE MEETING I WAS MENTIONING TO SOME OF THE FOLKS THAT ARE HERE THAT ARE VERY CONCERNED AND -- IN MY DISTRICT THAT THIS WAS GOING TO KIND OF GIVE US THE TEMPERATURE OF WHERE THE QUESTIONS ARE AND WHAT ARE SOME OF THE CONCERNS, AND WHAT I CAN SAY IS IT'S -- I'M VERY HOPEFUL THAT WE CAN -- THAT WE CAN GET PAST THESE HURDLES IN TALKING WITH MY STAFF.

WE'VE BEEN DEALING WITH THIS FOR QUITE SOME TIME NOW AND I THINK THAT WE CAN REALLY ANSWER A LOT OF THESE QUESTIONS BECAUSE WE'VE ASKED A LOT OF THE SAME QUESTIONS.

SO I LOOK TO GET ON YOUR CALENDARS AND TALK TO YOU ONE ON ONE WITH MY STAFF AND HAVE MY STAFF TALK TO YOUR STAFF ABOUT WHAT -- HOW WE'RE SEEING THESE CONCERNS.

WE CERTAINLY APPRECIATE THE ISSUES THAT ARE IMPACTING THE ENTIRE CITY.

AND IT'S THE WAY WE SEE DISTRICT 1 IS -- IF IT'S GOING TO HAPPEN IN THE CITY, IT STARTS IN DISTRICT 1.

AND SO ONE OF THE -- YES, AND IT WILL GO TO -- I CAN ALMOST GUARANTEE IT, THE ISSUES THAT WE SEE ARE -- WE'RE TRYING TO BE RESPONSIBLE IN TRYING TO APPLY THEM IN A WAY THAT REALLY MAKES SENSE FOR THE ENTIRE CITY, AS WAS STATED.

WE CAN'T APPLY THIS THROUGH A -- RIGHT NOW.

SO WE'RE HAVING TO LOOK AT THE FRAMEWORK THAT WE DO HAVE.

YOU KNOW, IT WAS MENTIONED, WE DID TALK A LOT ABOUT THE SA TOMORROW PLAN, AND I WANT TO POINT OUT THAT THE GUIDING PRINCIPLES, AND SOMETHING THAT REALLY I -- I THINK WE CAN'T TALK MORE ABOUT, WAS REALLY SOMETHING THAT IT WAS VERY IMPORTANT TO MY DISTRICT, MAKING SURE THAT NEIGHBORHOOD PLANS WERE NOT JUST WORDS ON A PIECE

[02:25:02]

OF PAPER, INTENTION AND A MEANINGFUL GESTURE, A MEANINGFUL PLAN THAT WAS GOING TO HELP SET THE COURSE.

I'LL READ FROM THE GUIDING PRINCIPLES.

THE FOLLOWING PRINCIPLES ESTABLISH A HIGHER ORDER OF DECISION-MAKING FRAMEWORK TO GUIDE THE GROWTH AND EVOLUTION OF SAN ANTONIO FOR THE NEXT 25 YEARS.

AND THE FIRST GUIDING PRINCIPLE OF THE NINE GUIDING PRINCIPLES IS TO MAINTAIN THE CHARACTER AND INTEGRITY OF EXISTING SAN ANTONIO NEIGHBORHOODS.

THAT IS SOMETHING THAT I DEFINITELY WANT TO TALK WITH ALL MY COLLEAGUES ABOUT BECAUSE THIS IS ABOUT ALL NEIGHBORHOODS, THIS PLAN IS WANTING TO CERTAINLY BRING UP AREAS ON THE WEST SIDE AS MY COLLEAGUE COUNCILMAN GONZALES MENTIONED IN TERMS OF AFFORDABLE HOUSING AND WE WANT TO BRING MORE OPPORTUNITIES AND MAKE SURE WE'RE DOING THINGS THAT ARE NOT ADVERSING AFFECTING THAT.

SO CERTAINLY THE PLAN IS TRYING TO HELP US FOCUS ON SOME OF THOSE THINGS.

SO I DO WANT TO SIT DOWN AND MAKE SURE WE'RE NOT CREATING SOMETHING THAT IS ONEROUS, WE DO WANT TO RESPECT EVERY CORNER OF THE CITY, AND SO THERE WAS CONCERNS ABOUT THE DEFINITIONS.

AND WE CAN TALK ABOUT EXACTLY WHAT -- HOW THOSE DEFINITIONS WERE DISCUSSED AT LENGTH WITH THE TASK FORCE, WITH THE COMMUNITY MEMBERS.

THIS IS SOMETHING THAT I HOPE WE CAN HAVE A REAL ROBUST -- IN AUDIO] -- MORE AT LENGTH AND THEN KICK IT TO A GOVERNANCE MEETING SO THAT WE CAN THEN PREPARE FOR ANOTHER B SESSION WHERE I THINK WE CAN HAVE A MORE COMPLETE DISCUSSION ABOUT SOME OF THESE CONCERNS IMPACTING OUR CITY.

THANKS.

THANKS, MAYOR.

>> MAYOR NIRENBERG: THANK YOU COUNCILMAN TREVINO.

AND THAT'S EVERYONE'S COMMENTS, MIKE, THANK YOU FOR YOUR -- THE PRESENTATION.

AND, AGAIN, EVERYONE WHO'S CONTRIBUTED TO THIS DIALOGUE.

CLEARLY THIS IS AN ISSUE THAT CAN'T BE SIMPLIFIED.

IT'S EXTRAORDINARILY COMPLEX, IT'S GOT PASSIONATE ARGUMENTS ON BOTH SIDES AND TRYING TO FIND CONSENSUS WHEN WE HAVE SUCH A WIDE VARIETY OF EXTREMES OF THE CONVERSATION HAPPENING RIGHT NOW DESERVES SOME MORE ATTENTION.

SO LET'S TAKE THIS TO GOVERNANCE AFTER THE COUNCILMAN AND THE STAFF HAVE WORKED WITH OUR COLLEAGUES WITH FINDING OUT IF THERE'S SOME CONSENSUS ON THIS OR COMMON GROUND ON SOME OF THE ELEMENTS OF A POLICY.

WE'LL TAKE A LOOK AT IT AT GOVERNANCE AND SEE IF IT'S READY TO COME BACK TO ANOTHER B SESSION.

THANK YOU FOR EVERYONE FOR CONTRIBUTING TO THIS.

IT'S GOING TO BE A LITTLE BIT OF A POLICY SLOG FROM NOW AND THEN

[Executive Session]

BUT THANKS FOR BEING WILLING TO TAKE IT UP.

>> SHANNON: THANK YOU, MAYOR.

>> MAYOR NIRENBERG: THE TIME IS NOW 4:38 P.M. PURSUANT TO THE AUTHORITY GRANTED BY CHAPTER 551 OF THE TEXAS GOVERNMENT CODE BTCS THE TEXAS OPENS MEETING ACT THE CITY COUNCIL WILL NOW RECESS INTO EXECUTIVE SESSION TO DISCUSS ECONOMIC DEVELOPMENT NEGOTIATIONS PURSUANT TO SECTION 551.087 ECONOMIC DEVELOPMENT AND THE PURCHASE, EXCHANGE, LEASE OF REAL PROPERTY PURSUANT TO TEXAS GOVERNMENT CODE SECTION 551.072 REAL PROPERTY.

>> MAYOR NIRENBERG: GOOD

[2. Public Hearing for Substantial Amendment to the Housing and Urban Development FY 2018 Budget and Action Plan to reprogram • Community Development Block Grant Funds in an amount not to exceed $908,000.00; • HOME Investment Partnerships Program Funds in an amount not to exceed $1,820,000.00; and • Neighborhood Stabilization Program Funds in an amount not to exceed $465,000.00 to eligible activities consistent with the Five Year Consolidated Plan; authorizing the modification, close-out, and cancellation of affected projects and the creation of new projects and project budgets. [Peter Zanoni, Deputy City Manager; Verónica R. Soto, Director, Neighborhood and Housing Services]]

EVENING, EVERYONE.

WELCOME TO OUR ANNEXATION HEARING.

WE HAVE A -- EXCUSE ME, OUR HUD PREPROGRAMMING HEARING.

WE ALSO HAVE CITIZENS TO BE HEARD AT 6:00 P.M.

CITY COUNCIL HAS RECONVENED FROM ITS EXECUTIVE SESSION.

NO ACTION WAS TAKEN.

WE'LL BEGIN NOW WITH OUR PUBLIC HEARING.

>> YES, SIR, AND THE PUBLIC HEARING IS FOR THE SUBSTANTIAL AMENDMENT TO THE HOUSING AND URBAN DEVELOPMENT FISCAL YEAR 2018 BUDGET AND ACTION PLAN TO REPROGRAM VARIOUS FUNDS.

>> MAYOR NIRENBERG: OKAY.

I WILL CALL NAMES, AND I'LL ALSO CALL THE NEXT IN LINE.

IF YOU COULD BE PREPARED TO COME UP.

THE FIRST ITEM ON -- OR EXCUSE ME, THE FIRST CITIZEN SIGNED UP TO SPEAK FOR THE HUD REPROGRAMMING PUBLIC

[02:30:01]

HEARING IS PAUL GISHIDO, FFOLLOWED BY MARK PEREZ.

>> ACTUALLY [INAUDIBLE].

>> MAYOR NIRENBERG: OKAY, YOU'RE PAUL GISHADO? YOU WANTED TO BE SIGNED UP ON CITIZENS TO BE HEARD? OKAY.

MARK PEREZ.

LANE WOODS.

>> [INAUDIBLE].

>> NARARITE RUBEN FLORES PEREZ? FOLLOWED BY LORRAINE ROBLES.

>> AS YOU KNOW, MY NAME IS NAZARITE RUBEN FLORES PEREZ AND ONCE AGAIN YOU KNOW THAT I'M UNDER THE LAW OF LOVINGKINDNESS, THE LAW OF HEAVEN.

NOW, I HEARD SPEAKING AND I THOUGHT I'D BETTER SPEAK IN BEHALF, ON THIS SUBJECT ABOUT HUD.

I'M ALL FOR HELP AND -- HELPING PEOPLE AROUND US, BECAUSE IT'S JUST -- IT'S ONLY PROPER TO HELP OUT AND PUT SOME FOOD OR FUNDS TO, YOU KNOW, MAKE IT MULTIPLY AND GET PEOPLE TO LIVE THERE, AND MAKE UP -- HAVE A BETTER LIFE IN THE FUTURE.

AND I KNOW A LOT OF PEOPLE ARE FOR IT, SO I'M HERE TO FAVOR IT, AND I HOPE YOU ALL MAKE A GOOD DECISION.

I DO THANK YOU.

>> MAYOR NIRENBERG: THANK YOU, MR. PEREZ.

LORRAINE ROBLES, FOLLOWED BY MICHAEL TAYLOR.

>> GOOD EVENING, I'M LORRAINE ROBLES WITH THE SAN ANTONIO HOUSING AUTHORITY AND I'M HERE TO SPEAK IN SUPPORT OF SUBSTANTIAL AMENDMENT NO. 2.

THIS PARTICULAR AMENDMENT WOULD PROVIDE 1.5 MILLION IN REPROGRAM HOME FUNDS TOWARDS THE FINAL PHASE OF THE REDEVELOPMENT OF THE FORMER WHEELIE COURTS, WHICH IS NOW KNOWN AS EAST MEADOWS SO IT'S OUR EAST MEADOWS 2 PROJECT, WHICH HAD BEEN DELAYED DUE TO A FINANCIAL GAP.

WE REACHED OUT TO OUR PARTNERS AT THE CITY AND THEY ARE RECOMMENDING A 1.5 MILLION IN HOME FUNDS TO HELP CLOSE THAT GAP SO THAT WE CAN GET TO A JUNE CLOSING.

ANY FURTHER DELAY WOULD HARM THE PROJECT.

SO AGAIN, WE'RE SPEAKING IN SUPPORT OF THE SUBSTANTIAL AMENDMENT NO. 2.

>> MAYOR NIRENBERG: THANK YOU, MS. ROBLES.

MICHAEL TAYLOR, FOLLOWED BY NATALIE GRIFFITH.

>> GOOD EVENING, MAYOR AND COUNCIL.

MY NAME IS MICHAEL TAYLOR AND I'M THE EXECUTIVE DIRECTOR OF CROSS TIMBER HOMES.

I DO HAVE SOME PHOTOS HERE, IF WE CAN DISPLAY THOSE.

SO I'M HERE TODAY TO SPEAK IN SUPPORT OF STAFF'S RECOMMENDATION OF $455,000 IN NSP FUNDING FOR CROSS TIMBER HOMES.

SO CROSS TIMBER HOMES WAS LAUNCHED IN 2017 BY HABITAT FOR HUMANITY OF SAN ANTONIO TO EXPAND HOME OWNERSHIP OPPORTUNITIES TO SERVE MODERATE INCOME FAMILIES.

AND MODERATE INCOME FAMILIES ARE THOSE THAT ARE MAKING BETWEEN 40,000 AND $76,000 A YEAR.

THIS INCLUDES TEACHERS, POLICE OFFICERS, RESTAURANT MANAGERS BECAUSE WHAT WE FOUND IS THAT WE ARE SEEING AN INCREASE IN THE NUMBER OF APPLICANTS THAT WERE OVER INCOME AND REALLY HAD NO PLACE TO GO.

AND THE CITY'S STATISTICS REALLY CONFIRM WHAT WE WERE SEEING AND THAT THIS IS A GROWING PROBLEM.

SO TO ADDRESS THIS PROBLEM WE'RE BUILDING HIGH-QUALITY ENERGY-EFFICIENT HOMES, AND WE'RE SELLING THEM FOR UNDER $150,000 TO MODERATE INCOME FAMILIES.

THE PICTURES DEFINITELY DO NOT DO IT JUSTICE.

THESE ARE REALLY FANTASTIC HOMES, AND REALLY AN EXCEPTIONAL VALUE.

SO WE'VE COMPLETED FOUR OF THESE HOME SO FAR, AND WE PLAN TO CONTINUE TO [INAUDIBLE] PRODUCTION FOR THE NEXT FEW YEARS.

THE ADDED BENEFIT IN ADDITION TO PROVIDING THESE HOME OWNERSHIP OPPORTUNITIES TO MODERATE INCOME FAMILIES WHO OTHERWISE WOULDN'T HAVE THEM IS THAT WE'RE REINVESTING IN DISTRESSED NEIGHBORHOODS.

SO RIGHT NOW WE'RE BUILDING IN JEFFERSON HEIGHTS, IN DENVER HEIGHTS, RIGHT NEAR ST. PHILIP'S COLLEGE IN DISTRICT 2.

WE'LL SOON BE MOVING OVER TO PROSPECT HILL IN DISTRICT 5, RIGHT BY OUR LADY OF THE LAKE UNIVERSITY.

BUT UNFORTUNATELY SINCE WE STARTED THIS PROGRAM WE'VE SEEN ALREADY AN INCREASE IN LAND COSTS AND THE COST OF BRINGING INFRASTRUCTURE, EXISTING INFRASTRUCTURE UP TO CODE.

SO WE'VE REQUESTED THIS NSP FUNDING, WHICH WILL ALLOW US TO EXPAND HOME BUILDING TO OTHER PARTS OF DISTRICT 2, OTHER PARTS OF DISTRICT 5, BUT ALSO BRING OUR HOMES TO THE OTHER DISTRICTS, DISTRICTS 1, 3, 4, 7 AND 9, THAT ALSO INCLUDE THESE NSP TARGET AREAS.

AND NSP FUNDS WILL ALLOW US TO CONTINUE SELLING THESE

[02:35:01]

HOMES FOR AROUND $150,000.

SO WE UNDERSTAND THERE'S A REQUEST TO DELAY ACTION ON THIS ITEM, AND WE'RE -- WE ARE REQUESTING THAT IF YOU DO POSTPONE THE ITEM, THAT YOU DO MOVE FORWARD WITH THE REQUEST FOR NSP FUNDING AND VOTE TOMORROW.

POSTPONING THIS VOTE WOULD BE VERY DETRIMENTAL TO OUR PROGRAM.

WE'RE SCHEDULED TO START TWO NEW HOMES LATER THIS MONTH, AND ANY DELAY WOULD MEAN THAT WE WOULD HAVE TO EITHER DELAY THE START OF THE HOMES OR PERHAPS INCREASE THE SALES PRICE.

SO -- AND EITHER OF THESE OPTIONS WOULD BE VERY DETRIMENTAL TO OUR FAMILIES THAT WE HAVE IN OUR PIPELINE ALREADY.

SO AGAIN, WE REQUEST YOUR SUPPORT AND YOUR VOTE TOMORROW, AND THANK YOU AGAIN.

>> MAYOR NIRENBERG: THANK YOU, MR. TAYLOR.

NATALIE GRIFFITH?

>> IT'S NICE TO SHOW THE FANCY PICTURES AND YOU GUYS DON'T HAVE TO ALL LOOK AT ME.

HI, I AM HERE ALSO TO SPEAK IN FAVOR OF THE RECOMMENDATION TO PROVIDE NSP FUNDING TO CROSS TIMBER HOMES.

THIS IMPORTANT PROJECT IS ALSO IMPACTED BY ANOTHER MATTER THAT YOU ALL ARE GOING TO HEAR ON TOMORROW'S SPECIAL MEETING AGENDA ABOUT SAWS IMPACT FEES.

ON TUESDAY EACH OF YOU SHOULD HAVE RECEIVED A LETTER FROM ME ABOUT THE DIFFICULTIES THAT SAWS' CURRENT IMPACT FEE ASSESSMENT METHODOLOGY CAUSES IN TRYING TO DEVELOP AFFORDABLE HOUSING ON VACANT AND NUISANCE LOTS IN OUR CITY'S DISTRESSED NEIGHBORHOODS.

IN THAT SAME LETTER I ALSO REPORTED THE SIGNIFICANT FINANCIAL BARRIER THAT CURRENT CITY POLICY IMPOSES BY REQUIRING US TO REPAIR, REPLACE OR IMPROVE PUBLIC INFRASTRUCTURE IN THE PUBLIC RIGHT-OF-WAY THAT THE CITY HAS ALLOWED TO DETERIORATE.

I'M HOPEFUL THAT THE CITY'S CURRENT ATTENTION TO THE NEED AND VALUE OF AFFORD -- AFFORDABLE HOUSING PROVIDES WILL RESULT IN POLICY CHANGES THAT WILL GAP] WILL ALLEVIATE SOME OF THE CURRENT BARRIERS GAP] STRUCTURE REPAIRS REQUIRED TO TO ALLOWING THIS INITIATIVE TO CONTINUE AND WILL BE A GOOD INVESTMENT FOR THE CITY.

THERE WILL BE ABOUT TEN PRIVATE DOLLARS FOR EVERY ONE CITY DOLLAR INVESTED IN THE PROJECT, AND EARLIER TODAY I LEARNED THAT THERE WAS A REQUEST FOR YOU TO POSTPONE TOMORROW'S VOTE ON THE ENTIRE AMENDMENT NO. 2, BECAUSE OF CONCERNS ABOUT THE RENTAL ASSISTANT PROGRAM RECOMMENDATION.

THIS REQUEST TO POSTPONE IS COMPLETELY UNRELATED TO CROSS TIMBER HOMES' PROJECT, AND I RESPECTFULLY AND EMPHATICALLY ASK YOU NOT TO DELAY THIS VOTE, BECAUSE IT WOULD BE SIGNIFICANTLY DETRIMENTAL TO THE CROSS TIMBER HOMES PROJECT.

FOR THE INFORMATION I'VE RECEIVED FROM THE ORGANIZATION ASKING FOR A VOTE POSTPONEMENT, THEIR OBJECTION IS SOLELY RELATED TO THE IMPLEMENTATION CONCERNS ABOUT THE RENTAL PROGRAM AND NOT THE AMOUNT PROPOSED FOR FUNDING.

THERE ALSO IS NO OBJECTION TO THE CITY FUNDING CROSS TIMBER HOMES PROJECT OR ANY OTHER PROJECT BEING RECOMMENDED.

THEY DO NOT HAVE A COMPETING FUNDING APPLICATION PROPOSING AN ALTERNATE USE OF THE FUNDS RECOMMENDED FOR CROSS TIMBER OR ANY OF THE OTHER IMPORTANT PROJECTS.

BECAUSE OF THESE FACTS AND THE HARM THAT A DELAY WILL CAUSE TO THE CROSS TIMBER PROJECT, I WOULD ASSUME OTHER PROJECTS ALSO, I IMPLORE YOU TO NOT DELAY THE ACTION ON THIS IMPORTANT AND MUCH NEEDED PLEASE VOTE TO PASS THIS AMENDMENT.

THANK YOU.

>> MAYOR NIRENBERG: THANK YOU, MS. GRIFFITH.

THAT IS EVERYONE WHO SIGNED UP FOR THE PUBLIC HEARING, THE PUBLIC HEARING ON HUD REPROGRAMMING IS HERE BY CLOSED.

WE'LL MOVE NOW TO CITIZENS TO BE HEARD NORMALLY SCHEDULED, BEGINNING WITH PAUL GISHIDO.

PAUL WILL BE FOLLOWED BY LANE WOODS.

* This transcript was compiled from uncorrected Closed Captioning.