SFR initiative goes to Special Election

With only Council member Jo Bacon dissenting, Mammoth’s Town Council approved sending the single family rental (SFR) ballot initiative to a Special Election vote in September or October of this year.

Proponents Kathy Cage, Michael Agnitch, and Tom Gaunt filed the initiative in February with the stated intent to require Town Council to seek voter approval before changing the laws regarding transient rentals of homes in residential zones.

Illegal rentals of SFR have grown in recent years with the advent of rental sites like VRBO and Airbnb (both companies are valued in the billions of dollars). Proponents of SFR have argued that the Town should expand its current SFR zoning so it can reap the financial benefits of legal single family home rental, rather than spending the money to catch illegal renters and compel them to pay back Transient Occupancy Tax (TOT).

Opponents of SFR have argued that illegal rentals are already degrading residential neighborhoods, and that expanding SFR would not only negatively impact quality of life in Town, but would also affect condo and hotel businesses that already struggle to bring their occupancy above 50 percent.

On June 3, Town Clerk Jamie Gray certified 835 valid signatures in favor of the SFR ballot initiative, leaving Council with the decision of whether or not to adopt the initiative, or to allow Mammoth’s 2,000 other registered voters to weigh in during a Special Election.

A Special Election will cost the Town about $50,000.

Town Attorney Andy Morris noted that if the SFR initiative passes, and if future proposed changes to zoning to allow for SFR go to General Election, each General Election will cost the Town about $20,000.

Council instead chose to request a 9212 report on the effects and impacts of the initiative measure. Staff prepared the report for the July 1 meeting. The report outlines the fiscal impact of the initiative, as well as its effect on the Town’s General Plan and Zoning Code.

The report notes that changes to both the General Plan and Zoning Code require a “lengthy and interactive process … involving public participation.” The report asserts that by substituting voter approval for this public process, voting on whether or not to change zoning to allow SFR “may exclude property owners who would otherwise be involved in the typical public process, as there are a significant number of owners who are not registered voters.”

The report goes on to state that the initiative will not effect the use of land,

availability and location of housing, funding for infrastructure, or business employment. It will impact uses of vacant parcels of land by requiring voter approval for any rezoning which would result in allowing transient rental on a property.

Council heard a number of comments from both proponents and opponents of the SFR ballot initiative—and SFR in general—at Wednesday night’s meeting.

Tim Flynn argued that “the power [to decide whether or not to allow SFR] needs to remain with Town Council.” He argued, as did others, that the issue in Town is enforcement, and that SFR represents a chance for the Town to get back on its feet financially.

Meanwhile a resident of South Lake Tahoe said her community is watching Mammoth’s SFR initiative closely in the hopes that South Lake Tahoe can reverse the effects of unrestricted SFR. She said there are currently 1,806 licensed vacation home rentals in South Lake Tahoe, and hundreds more illegal home rentals.

“Neighborhoods are now the equivalent of hotel districts,” she said.

She acknowledged that the unfortunate effect of a ballot initiative is that “it pits Council against the public,” but said that “the decision tonight hopefully won’t be about winning or losing, but about listening to your community.”

Michael Agnitch and Kathy Cage urged Council to simply adopt the initiative to spare the Town the expense of a General Election. Agnitch asserted that with 835 signatures, the initiative would likely pass, considering voter turnout for Special Elections is typically around 1,000 or less.

But Danna Stroud argued that, considering the initiative was spearheaded by a “Let Mammoth Decide” campaign, initiative proponents should let Mammoth voters decide by voting.

“There are more than 835 people who live in Town; when do their voices get heard?” she said. “Let the entire public engage in it.”

Stroud expressed frustration that voter initiatives “are not an efficient way for government to function,” and that going to a vote on zoning changes will “bypass the public process.”

Meanwhile Kevin Green argued that the initiative was the result of a knee-jerk reaction to Town Council prioritizing a discussion of SFR. “The reason it ended up on the priority list is because you guys [initiative proponents] wanted it,” he said. “… We never did have the chance to get up and talk about it, though.”

Mayor Pro-Tem Shields Richardson agreed. “It’s too bad the cart got before the horse,” he said. “… Quite honestly, that’s been a little hurtful.”

“I sometimes question myself and how we ever got here,” said Mayor Michael Raimondo. “… It’s never been that three out of five Councilmembers are approving a blanket change to the Town ordinance [to allow SFR] … I think this is a waste of taxpayer dollars, and I think Council is more than capable of vetting this issue.”

Faced with the choice of either adopting the initiative or sending it to Special Election, all Councilmembers but Jo Bacon voted in favor of a Special Election.

“I support the idea of letting Mammoth decide,” said Council member John Wentworth. “I support putting this question to the voters.”

The Special Election will be held Sept. 29 or Oct. 6.