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Photo by Christopher Lugo/Staff 121 comments were submitted to Town Clerk Gibby Shaheen.
In a meeting that lasted an hour and 45 minutes, with more than 30 people speaking, the Highlands Town Board of Commissioners got a chance to hear what the public’s thoughts were on the planning board’s recommendations on short-term rentals.
Along with spoken comments, the town allowed residents to send their comments to Town Clerk Gibby Shaheen to be added to the record after the meeting.
A total of 121 comments were sent to Shaheen and in those comments, 82 were against short-terms rentals (68 percent) and 39 were for short-term rentals (32 percent.)
To start off the meeting, Derek Allen, the attorney representing the Save Highlands group that has a pending lawsuit on the town, said that this type of dialogue is important.
“If you can’t get fired up about something that you think is going to impact your biggest investment that you are going to make in your life, which is your home, then I don’t think you’re alive,” Allen said. “It is no secret that we have a lawsuit that is out there. Our clients are members of this community. There are a lot of people that are similar on both sides of the issue, and I hope that this communication and sort of dialogue will produce an outcome that everybody can live with.”
Allen said to his group, the Aug. 24 proclamation banning short-terms rentals was completely out of the blue.
“It felt like an attack on their private property rights,” Allen said. “We sent out an extensive complaint and we did that because we felt like the complaint was our only choice considering the stakes that were involved and what was set to happen on Jan. 3. We think that the actions of the commissioners were wrong because it was beyond their authority. We think that the UDO does not prohibit STRs in any form, shape or fashion. We think that prior town representation has confirmed that, and we think that there are constitutional issues that are out there.”
Allen said maybe the biggest issue in regard to short-term rentals is the idea of grandfathering.
“To be clear, there is a principle in land-use, in private property rights that’s facing constitutionality and says that if you are doing something on your property that is a valid, authorized use, and a town or county comes in afterwards and says that’s now illegal, you’re permitted to keep doing that. It’s a valid, non-conforming use, it’s a grandfathered use, that’s what we are talking about when we are talking about vesting. What I’m talking about is valid, nonconforming use and that is what these folks felt like was in jeopardy at the time.”
With the town hiring attorney Craig Justice, Allen said that Justice provided correct council in saying that the town cannot take away vested rights for STR owners.
“That lawsuit now sits out there with a motion to dismiss,” Allen said. “We let that sit and the town has let that sit to let this ordinance process play out. We think that is the right thing to do.”
Looking at the planning board’s recommendations, Allen said it was not a terrible first draft, but he did have some comments on it.
In section 6.5 of the planning board’s draft, Allen said that N.C. Face Law has already determined that STRs are not commercial use. Allen also said that when it comes to zoning certificates there are several times it is mentioned in the planning draft, and they should be prohibited.
“That issue is currently in the court of appeals,” Allen said. “We think, under the current state of the law, is not allowed.”
Charlie Nalbone with the Highlands Neighborhood Coalition represented several residents that are against STRs.
Nalbone spoke about what is expected to be heard from both sides of the issue.
“We expect that tonight, in addition to hearing from the neighbors and neighborhoods, you will also hear from the investors and businesspeople who own, operate, or otherwise profit from short-term rentals in our single-family neighborhoods,” Nalbone said. “We expect that we will hear from these short-term rental investors will be some version of either the law should be changed so that, ‘I can operate my STRs to make as much money as possible,’ or ‘I have to be allowed to operate my STR business because I can’t afford the property otherwise.’
“What you will hear from the neighbors and residents of our town is quite different. None of us are doing anything different with our homes than what we have done for decades – simply living in and trying to enjoy our homes and what until recently were the peaceful quiet residential neighborhoods that made Highlands such a special town. A successful town uses its zoning laws to encourage and balance growth in the community while protecting its residential neighborhoods. Our current UDO designates places for commerce, hotels and other overnight accommodations, and shops while giving residential areas commerce free environments for homeowners to enjoy living in Highlands without being forced to live next to a business. All we ask is that the long term, close to 50-year prohibition on the commercial activity of overnight accommodations be maintained and enforced so that we as neighbors can once again go back to enjoying Highlands and our neighborhoods.”
With the planning board’s recommendation, Nalbone said his group has been following it and they “simply got it wrong.”
“The Planning Board’s proposal overturns decades of Highlands land use policy that, with the exception of customary home ocupations in the R-2 and R-3 zones and highly regulated Tourist Homes in the R-2 zone, which by the way includes that the owner or operator be on site, kept all commercial activities, including overnight accommodations such as STRs, tourist homes, hotels, motels, inns, and bed and breakfasts out of Highlands single family neighborhoods.”
Opposed to Allen, Nalbone said that overnight accommodations are defined in the town’s UDO as a commercial use.
“Tourist homes are a commercial use, bed and breakfasts are a commercial use, hotels and motels are a commercial use, and even though it has been Highlands’ long-term policy that these commercial activities create an intensity of use that is not compatible with our single-family neighborhoods, the Planning Board’s proposal opens up every single one of Highlands’ neighborhoods to these commercial activities,” Nalbone said. “One of the arguments that we’re likely to hear tonight from the short-term rental investors is that the UDO doesn’t specifically say short-term rental – it doesn’t have to. STRs are overnight accommodations and overnight accommodations are designated as a commercial use and are prohibited. Any claim that a short-term rental is not an overnight accommodation is simply absurd.”
Nalbone continued that in the planning board’s proposal, it opens up all of Highlands to whole house short term rentals, allows tourist homes in the R-1 zone for the first time and grants vested rights status to STR investors.
“Picture the chaos in our R-1 neighborhoods if even just half the homes in Shelby Place or Little Bear Pen or any other neighborhood were turned into Tourist Homes hosting weekend renters every weekend for the latest downtown festival or destination wedding,” Nalbone said. “Picture the chaos in all of Highlands’ neighborhoods if even just half of the homes in every neighborhood were rented every other weekend by short-term renters attending the latest downtown festival or yet another wedding. The planning board’s proposal grants vested rights status to the STR investors who, contrary to the existing laws, have been operating overnight accommodations in Highlands residential neighborhoods. This is not legally required; it rewards unlawful behavior and it punishes Highlands’ law-abiding homeowners.”
Nalbone said the Planning board’s proposal is completely contrary to the clear and unequivocal desire of the vast majority of Highlands residents that STRs should be eliminated from Highlands residential neighborhoods.
“Most recently, the residents and voters’ opposition to short-term rentals was clearly expressed in the municipal election results where the candidates opposed to STRs won by overwhelming landslide majorities,” Nalbone said. “This position was also clearly expressed in the response to the Community Plan survey, where more than 62 percent of the respondent’s expressed opposition to STRs, and remember, since this survey was also open to the business community, the 62 percent opposed to STRs is likely an underrepresentation of the actual level of resident’s opposition. We don’t know how it happened, but the Planning Board’s recommendation does not reflect the will of the residents and the voters of Highlands. Their proposal should be, and we are asking the Board of Commissioners to reject it in its entirety. Respectfully, we ask that the town honor its obligation to the residents of our single-family neighborhoods and enforce the existing prohibition on short-term rentals now.”
At the end of the meeting, Justice applauded the residents that commented.
“I thought it was a well done, very polite, hearing,” Justice said. “You should be proud of yourselves. You were very articulate, and I very much enjoyed it.”
Highlands Mayor Patrick Taylor agreed.
“This was a very positive, civil and informative public hearing,” Taylor said. “I appreciate all of the people who attended and participated in the hearing.”
Moving forward, the board of commissioners will hold several meetings in the coming months to look over the comments. The next board of commissioners meeting is scheduled for March 10, but according to Taylor, STRs will not be on the agenda.
- By Christopher Lugo