After more than two months of discussion by members of the Waukegan City Council, along with suggestions from the public, regulations governing short-term rentals of residential real estate are getting closer to reality.
Starting in early November, the council’s Community Development Committee discussed a proposal originated by city officials to keep such rental properties at least 1,000 feet from each other, require off-street parking and mandate security cameras, among other requirements.
Many of the original requirements were scratched as council members heard from the public, including rental property owners, and took a deeper dive into the impact on an industry that has operated in the city for years.
The committee Monday unanimously recommended a simplified version of the original proposal for consideration by the full council, modifying yet another streamlined version.
After city officials modified the original version with less stringent requirements for discussion, Ald. Victor Felix, 4th Ward, offered an alternative simplifying the process further. Suggestions from Ald. Lynn Florian, 8th Ward, and Ald. Thomas Hayes 9th Ward, finalized the effort.
As currently proposed, owners of short-term rental property would have to register with the city, obtain a license and pay the hotel/motel tax. A two-night stay would be required, but security cameras would not.
The City Council is scheduled to vote on the Community Development Committee’s suggested ordinance at 7 p.m. on Jan. 21 at City Hall.
When the committee discussed the proposed legislation again on Dec. 2, city officials reduced the distance separating short-term rentals from 1,000 to 500 feet. It also removed a maximum number of licenses that would be allowed, and removed the off-street parking requirements.
Eventually city officials took out the distance requirement altogether. Felix’s alternative proposal eliminated the security camera mandate, and suggested the tax be collected through the online rental platform rather than directly from the property owner.
Todd Johnson, a resident who owns a number of houses he rents on a short-term basis, said at the meeting the only businesses currently required to install security cameras are nightclubs and “adult entertainment establishments.”
“Security cameras are required for all entrances, and they are not required for long-term rentals,” Johnson said. “I do believe security cameras are a good thing, and I also believe they should be at the discretion of the property owner and not mandated by the city.”
Florian said either the restrictions should be very stringent and loosened as the industry evolves, or keep it simple and add more restrictions if they became necessary. Regardless, the city must make a decision.
“We have to be the one to set the standard,” Florian said. “I suggest we make it as restrictive as possible and then if things get better, we can back off, or we just do the minimum right now and see how it goes.”
Eventually Florian opted for simplicity, which was in sync with Felix’s alternative ordinance. She said if there were problems with less restrictions, they could be remedied at a later time.
“Make them be registered, licensed and tax them,” Florian said. “Do those three things, and let’s see what we have. Let’s see who has a problem. Let the neighbors say this has been here for years and it’s not a problem, or yes it is a problem.”
Hayes said he was opposed to security cameras, but the two-night stay requirement was important to him. With those additions, he said he liked the rest of Felix’s proposal.
“We have to make sure this isn’t just a glorified hotel,” Hayes said.
