Public hearing scheduled March 9
SOMERS POINT — Operating a short-term rental property soon may become more expensive in Somers Point, where City Council proposed adding a tax, increasing a fee and instituting financial penalties for code violations.
The three measures proposed Feb. 23 are intended to increase oversight of the properties, which are booked through an online marketplace such as Airbnb for a limited time, as well as implement penalties for violations of noise and nuisance rules as a deterrent to appease concerned neighbors.
Ordinance 7 amends registration and inspection rules, adding a section that requires the owner or manager of a property be within a 10-mile radius of it 24 hours a day to respond to any issues that may arise. It also sets the minimum number of nights at three.
The ordinance establishes penalties for violations of between $250 and $1,000. Significantly, it defines “sustained complaint” as any credible complaint regarding a code violation whether or not charges result. Anyone receiving a second sustained complaint within one week is subject to a fine of $1,500.
The ordinance is broad regarding license revocation, stating a violation of any single regulation is grounds. It specifically states that three sustained complaints in one year could lead to loss of license.
Ordinance 7 also sets the maximum number of visitors at two per bedroom plus two and prohibits the renting of individual bedrooms, basements, attics, trailers, campers, yards and swimming pools.
Ordinances 8 and 9 concern finances. The former sets the cost of an annual mercantile license, which all short-term rental owners must obtain, at $150, while the latter adds the entities to those subject to the hotel and motel room occupancy tax of 3 percent.
Some still opposed
Councilman Sean McGuigan, who has steadfastly maintained his opposition to the city allowing short-term rentals, read a letter he received from city residents Rex and Barbara Granus.
The letter accurately depicts the sentiment of members of the public who have spoken out against the practice at meetings over the past two years.
“I write to you today to ask that you take action and stop short-term rentals. Somers Point residents, both young families and retirees, choose to put down roots in this City by the Bay. They should not be forced to contend with rowdy parties, excessive cars on the streets, increased trash, and increased noise due to short-term rentals and an influx of strangers every week or weekend,” the letter states.
“By allowing short-term rentals to continue multiplying, you are encroaching on the property rights and sense of stability in the Somers Point neighborhoods.
“A stable neighborhood with familiar neighbors shouldn’t be a luxury, but something citizens can count on when picking a community to settle down in. A revolving door of strangers at a short-term rental does not create the sense of community that our citizens deserve.”
All three measures passed, with McGuigan casting the only no vote for ordinances 7 and 8, while 9 passed unanimously.
Residents speak out
During public comment, James Oswald said he is not opposed to short-term rentals but is against them operating unregulated. He also said more needs to be done to keep multiple cars from clogging up the neighborhoods.
Oswald said the homes are being operated as businesses, comparing them to restaurants that have to have a set number of off-street parking spaces to operate. He would like to see a limit on the number of cars at each rental.
Bruce Lonergan said he was concerned that the proposals were falling short, citing the reduction from the previously proposed 6 percent tax to 3 percent and the minimum stay from four days to three days.
Lonergan also said he thinks the $150 fee for a mercantile license is too little, suggesting it be raised to $1,000. He said short-term rentals would bring more people to the city and put a strain on its infrastructure and that the operators should be footing the bill instead of the taxpayers.
Susan Modica said she is against the three-day minimum stay, noting she grew up in Margate where neighbors were strangers because of the constant turnover of vacationers. She said neighbors look out for one another in Somers Point and that “we are going to lose that.”
Citing the letter McGuigan read into the record, Frank Fontana said he agrees with the writer and asked how many short-term rentals would be allowed.
Solicitor Tom Smith addressed most of the issues raised by those present, including by telling Fontana that there is no limit.
Smith said the city could not prohibit anyone from parking in a designated spot anywhere in the city and could not require off-street parking unless the state changed its policy to treat short-term rentals as businesses.
Regarding the tax, he said there are several reasons why 6 percent is untenable, the most important of which is keeping it equitable with the city’s hotel and motel room tax.
Addressing another issue raised during public comment, Smith said short-term rentals are required to have liability insurance coverage in order to obtain a mercantile license.
Smith also said the mercantile license fee cannot be arbitrarily increased but instead must reflect the cost of the service provided.
A public hearing and final vote on the ordinances are expected during City Council’s next meeting, scheduled for 7 p.m. March 9.
By CRAIG D. SCHENCK/Sentinel staff
