I am writing in regard to John Hoeppner’ s letter to the editor of March 23, 2023.
John, I believe that the short term rental legislation before Council can be a win-win for the Town. Our task is to regulate rentals as well as to develop a revenue stream for the town.
The town’s business model is to pay fixed expenses with variable revenues. You won’t find that business model in any business school in America. We are a municipality and we’re stuck with that model. So, let’s find additional revenue opportunities.
The Municipal Association of Governments in Maricopa County published a report that stated Cave Creek had 4.3% of its housing stock as rentals – well over 100 units. The highest percentage in the state of Arizona. Rentals in Cave Creek are here to stay.
John, you caution that “there is a risk that a watered down second version of the amendment may be approved. The watered-down version may not include the necessary provisions to protect residents from the negative effects of short-term rentals.”
The first reading contained provisions that were impractical and did not guarantee the welfare of the community. One such provision would require background checks for sex offenders. In that case who would conduct the background check? The local Marshal? MCSO? The FBI? Who would evaluate the report?
Another provision would require the property owner to have insurance business licenses. It is not the Town’s responsibility to ensure that the property owner is insured. Additional requirements of the first reading were pest inspections, sales tax permits, notification of neighbors, regular inspections and maintenance etc.
I hope the second reading of the amendment removes these draconian requirements. The remaining measures would give the Town much needed control over rentals. A property owner who rents must have a business license, a sales tax license, register with the County, register with the AZ Dept. of Revenue, file TPT payments, etc. Finally, the property owner must provide complete information on who to contact in case of an emergency. Once we know who is renting, we can enforce ordinances against loud noise, trash, etc. There are specified penalties for non-compliance.
Best regards,
Reg Monachino
