Whitefish OKs rental amnesty for rental violators

The Whitefish City Council on Monday approved a resolution to give temporary amnesty to violators of the city's short-term rental regulations - with a few caveats.

Amnesty extends only to rentals made prior to Oct. 1, and rentals can't extend beyond Sept. 7, 2008. After that, no rentals of less than 30 days will be allowed in residential zones, as defined in existing zoning laws.

The resolution doesn't allow short-term rentals in areas where they're already prohibited by covenants. That means covenants in developments such as Monterra and Birch Hill, where violations have been prevalent, would take precedence over the new law, and violators would be prosecuted.

Whitefish zoning doesn't allow rentals of less than 30 days in residential zones.

When it came to the city's attention a few months ago that various property management firms and others were chronically violating the 30-day limit, the city notified the violators and the council directed the city staff to develop a plan to provide temporary amnesty for violators to allow the city to explore solutions.

THE DILEMMA for City Council members was finding a way to accommodate both sides - residents who want their quiet neighborhoods kept intact and visitors who drive the local tourist economy.

But for Birch Hill resident Joe Malletta, the solution was black and white.

"This resolution defies logic," he said. "I can't imagine that OKing the breaking of the law is something the city should do."

Malletta accused the city of "picking and choosing" which laws it enforces, and said absentee ownership is a cancer that is degrading traditional neighborhoods.

Property management agents have a different take.

"Vacation rentals don't cost the community money, they make the community money," Susan Calkins of Hideaway Resorts wrote in a letter to the council. "When a town promotes tourism, it assures tourists that there will be ample places for them to stay to enjoy the 'Whitefish experience.'"

Calkins maintained the zoning department's estimate of 100 complaints about short-term rentals this year was misleading because the majority were from the Monterra development, where people were illegally using the clubhouse.

Jill Zignego of Five Star Rentals also wrote to the council, saying professional property managers screen potential renters and monitor properties, thereby helping to retain neighborhood integrity.

The bottom line for opponents of the amnesty resolution, though, is the law on the books.

Council member Nick Palmer wondered if the city legally can grant amnesty, but City Attorney John Phelps said it's lawful for the council to direct city staff not to prosecute violators.

"I think we can do it without losing any lawsuits," Phelps said.

Even so, council member Velvet Phillips-Sullivan said she wasn't comfortable with treating some people differently in terms of law enforcement.

"Not enforcing our laws doesn't protect neighborhoods," Phillips-Sullivan said. "We don't know what we're putting in place" with the new resolution.

Council member Jan Metzmaker said she, too, was nervous about proceeding with the amnesty deal, and pointed out that the city doesn't know how many short-term rental properties there are in Whitefish.

But council member Nancy Woodruff countered that the amnesty period gives the city time to figure it out.

"We are dealing with it. It's not that we're not enforcing our laws," Woodruff said. "We are trying to deal with it in a way that makes sense."

Council member Shirley Jacobson said it's a matter of being practical.

"If we come up with 400 people who need to be prosecuted right away, it won't happen," Jacobson said. "This is the only way we can go forward."

Malletta said relying strictly on covenants to enforce zoning laws will be difficult.

Developments such as Wildwood Condominiums, which have historically conducted short-term rentals even though they're not zoned for it, will have to go through the planning process to ask for a zoning text amendment.

The council vote on amnesty was 4-1, with Phillips-Sullivan casting the lone dissenting vote.

Features editor Lynnette Hintze may be reached at 758-4421 or by e-mail at lhintze@dailyinterlake.com