Short-Term Rental Standards Amendment (G 1-23)

Docket# G 1-23 - Proposed amendments to the McMinnville Zoning Ordinance, adopting amended standards for Short-Term Rentals

The moratorium on the issuance of Short-Term Rental permits was officially lifted as of June 13, 2023. The approved ordinance amendments have been updated, which you can find in the
Zoning Ordinance under 17.12.010(P).

You can find the current 500-foot buffer map here, along with the application and corresponding fees on our Applications & Fees page.

Please keep in mind that before you can officially apply with us, you must complete the Neighborhood Meeting Requirement.

The proposed amendment would amend the standards for Short-Term Rentals in the Residential zones R-1, R-2, R-3, R-4, R-5, and O-R (Office/Residential) zones. 

Short-Term Rentals are listed as a permitted use in these zoning districts, subject to the standards provided in Section 17.12.010(P) of the Zoning Ordinance. The proposed amendment would amend the standards in Section 17.12.010(P). Also, to amend the off-street parking provisions for Short-Term Rentals in Chapter 17.60 of the Zoning Ordinance to provide internal consistency with the amended standards. 

The Planning Commission held its first evidentiary public hearing on March 16, 2023 to consider the proposed amendments. In this meeting, Planning Commission made the recommendation for City Council to approve the proposed amendments with revisions:

Amended Proposal with Planning Commission Revisions

City Council held their first meeting reviewing the proposed amendments on May 23, 2023. They requested additional time to go over the information, the next meeting with City Council was held on June 13, 2023 were the amendments were approved. 

Background

On July 12, 2022, the McMinnville City Council adopted Ordinance No. 5118, establishing a moratorium on the issuance of short-term rental permits from September 1, 2022 to December 29, 2022. 
See Docket G 2-22 for Short-Term Rental Re-Evaluation.  The following issues were noted: 

• McMinnville is experiencing severe constraints in housing land supply which is leading to a deficit in housing units being built in the community to meet housing demand. With a lack of supply and significant demand, housing prices have escalated exponentially in the past couple of years.
   
• At the same time, tourism has increased in McMinnville exponentially as well. Increased housing prices and increased demand for tourism lodging has led to a greater-than-normal demand on housing to be leveraged as short-term rentals.
   
• Residential neighborhoods are experiencing an increasing amount of short -term rentals causing residents to become concerned about the quality of life, health, safety, and community interaction within the neighborhoods.
   
• McMinnville's zoning ordinance currently has a spacing separation of 200' between short-term rentals. This has proven to be too much density of short-term rentals in some neighborhoods. The City would like to evaluate the impacts of short-term rentals on residential neighborhoods during the moratorium and recommend solutions for moving forward. 

During the moratorium, the Planning Commission held a series of work sessions to review best practices for regulation of Short-Term Rentals and evaluate the McMinnville Municipal Code to mitigate the negative impact of short-term rentals on McMinnville's housing supply and quality of life in McMinnville's residential neighborhoods. 

On November 22, 2022, the City Council adopted Ordinance 5127 extending the moratorium for an additional six months to June 29, 2023.  The following additional issues were noted: 

• The Planning Commission has researched best practices in ten other communities and hosted a series of work sessions to evaluate the McMinnville Municipal Code as it pertains to short-term rentals and their negative impact on McMinnville's housing supply and residential neighborhoods.
   
• The McMinnville City Council found that the issues that established the initial moratorium on the issuance of short-term rental permits still existed. 
   
• The Planning Commission needed more time to evaluate the McMinnville Municipal Code to mitigate the negative impact of short-term rentals on McMinnville's housing supply and quality of life in McMinnville's residential neighborhoods. 

The Planning Commission worked through issues during the series of work sessions.  At the January 19, 2023 work session, the Planning Commission considered proposed amendments to the Zoning Ordinance for regulation of Short-Term Rentals.  The voted to initiate the formal public hearing process for consideration of the proposed amendments. 

The draft proposal has been assigned Docket Number G 1-23, closing the prior G 2-22 Short Term Rental Re-Evaluation docket.