Following a public hearing earlier this week, West Kelowna City Council has given third reading to amendments to the zoning bylaw in light of new short-term rentals (STR) regulations.
The changes, which were first discussed at the end of February, include things like adopting the name short-term rental instead of using short term accommodation (STA) and creating new definitions for STRs to provide clarity.
The amendments will see the Bed and Breakfast regulations merged with the current STA regulations along with the creation of two categories, which include short-term rentals and short-term rental (Bed and Breakfast).
Revisions to the principal operator requirements now require the operator to reside in the home when operating a STR, which falls in line with provincial mandates.
In addition, STRs and STRs (Bed and Breakfast) are allowed in the R2 – Duplex Residential zone but only in single detached dwelling forms.
During the public hearing, two residents told council they wanted STRs allowed in the RC3 – Compact Single Detached Residential zone.
On Tuesday Chris Oliver, planning manager, said they avoided including STRs in the RC2 and RC3 lots because they include forms where the city has not contemplated STRs, like duplexes.
Oliver said Bill 44 and other provincial changes, like additional density up to four units, will “dramatically” change the landscape of planning, including the RC3 zone. They say allowing STRs would complicate things.
In February, council opted out of the principal residency requirements, which is allowed for municipalities over 10,000 with a rental vacancy of 3%.
That exemption is only for purpose-built tourism and resort developments like Barona Beach, Boucherie Beach, Paradise Estates, The Cove Lakeside Resort and Casa Loma Resort.
Coun. Rick de Jong asked what would happen if the city dipped below that 3% vacancy rate.
Staff said once a city opts out of those principal residency requirements, it is written into the legislation and stays there indefinitely. They said it will only change if the city opts back in.
Council was told that 263 operators are waiting for their licences to either be reviewed or issued, which include the 2023 renewals (245) and the new licence applications (18) for 2024.
Staff’s recommendation was to move the matter along as quickly as possible to address this backlog of licence applications and to give residents clarity in advance of the May 1 deadline.
“We have a very short time line to actually review those applications and notify the folks who are going to have to get out there and get their business licences,” Oliver said.
Coun. de Jong acknowledged the request from the members of the public who wanted the RC3 zone included, however, Oliver told him that including those parcels into the STR bylaw would trigger another public hearing, which would only delay staff addressing the backlog of licences.
“I’m certainly going to support third reading tonight. Simply, we’ve got a backlog that needs to be dealt with and delaying it further is just going to increase a bigger backlog and create problems for all those people that are already in the system,” coun. De Jong said.
Coun. de Jong said he’d like to see a review of the STR regulations to include the RC3 zone.
However, Oliver said staff were under a lot of pressure with other provincial housing legislation and said they could not commit to anything at this time. Interim CAO Ron Mattiussi said a potential review could happen in 2025.
Coun. Stephen Johnston said he was disappointed RC3 lots could not be included at this time.
“For me to leave this sort of undone and unaddressed and push it down the road for another year, I just don’t like it,” coun. Johnston said, questioning why the public hearing was even held.
Mayor Milsom said the bylaw amendments discussed at the public hearing did not specifically address the RC3 zone and that he could have directed the focus of the public’s comments.
Regardless, coun. Johnston said he wanted the RC3 zone in the STR policy.
Coun. Jason Friesen said he acknowledged the desire to include the RC3 zone in the STR bylaw, however, he said he was cautious about the matter.
“There are so many changes that are coming down that will affect our community,” he said.
“If somebody can now put four units on a lot in the R1 zone, what’s that going to do? The impact that could potentially come our way and to our community, just through the statutory zoning changes, I’m cautious on.”
Ultimately, West Kelowna City Council gave third reading to the zoning bylaw amendments for the STR definitions.
They also directed staff to prepare a report outlining the scope required for the implementation of the RC3 to the STR policy.
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