Vacation rentals may find loophole

By Melissa Domsic
mdomsic@record-eagle.com

March 18, 2008 04:00 am

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TRAVERSE CITY -- City commissioners banned vacation home rentals from residential districts, but a proposed zoning amendment could provide a loophole.

The main part of the amendment clarifies that the rentals are permitted in commercial zones, but it also includes a definition that would allow a homeowner to rent out their house for up to two weeks a year in residential neighborhoods.

"The importance of having the definition is essentially that it basically provides a bright-line rule for the planning department to determine whether a particular use is a vacation home rental or not," city Attorney Karrie Zeits said.

Commissioners will hold a public hearing on the amendment tonight, and they could end up removing the 14-day provision.

It was included because the Internal Revenue Service allows homeowners to rent out their houses for a total of 14 days a year without reporting it as income.

Zeits interpreted the zoning ordinance last year and concluded weekly rentals are illegal in residential districts. Vacation homeowners spoke out and city staff crafted amendments to permit them in residential and commercial districts.

Commissioners rejected the changes in January after residents overwhelmingly urged against allowing the rentals in their neighborhoods.

Also scheduled for city commission consideration:

•An ordinance that would prohibit the feeding of waterfowl and seagulls within 100 feet of the shoreline, downtown or city parks, as well as pigeons downtown. The rule aims to reduce E. coli levels in Grand Traverse Bay.

•A parks policy to limit and regulate events on the city's parks; also an ordinance to enforce its provisions. The National Cherry Festival is provided special allowances and otherwise exempt from the policy. Commissioners will consider exempting the Traverse City Film Festival and give it priority over park use second to the Cherry Festival.

•A request from the Cherry Festival to provide food, beverages and entertainment on the Open Space one day early since the Fourth of July falls on the Friday immediately preceding the festival's opening day. The Grand Traverse Area Veterans Coalition will sponsor a fireworks show over the bay on the holiday.