Some changes will affect properties in the historic district

The Fredericksburg City Council on Monday voted unanimously to approve amendments its zoning ordinances regarding short-term rentals.

The vote changes the criteria for special exceptions, adds consideration of schools for the Zoning Board of Adjustment, and removes the requirement to post an outward facing physical permit, all effective Jan. 1, 2024.

Linda McDonald, who has owned three historic properties in Fredericksburg, supported the special exception density criteria change from 75% to 50%, and said a bar should be “…reasonable so that it can be attainable.”

At this point, properties have applied and were unable to qualify for a conditional-use permit with the 75% threshold under the 2022 ordinance, according to City Attorney Rachel Raggio and Director of Development Anna Hudson.

The provision for special exceptions is essentially a valve, Raggio said, and is the first bar when a property applies for a special exception. Special exceptions cannot set precedents, she emphasized.

“If we use the 75% threshold, nothing is going to make it to ZBA. if we use the 50% threshold, ZBA will be able to use its discretion to determine when it’s appropriate to allow this use,” Raggio said, reiterating a point Councilmember Emily Kirchner made earlier in the meeting.

Mike Mahoney expressed concern of changing the special exception density within a 200-foot radius from 75% to 50%, and told the council, “you’re going to let a lot more in the door.

“Why would the council adopt a policy now that we know is going to expand the pool of STR potential properties, when you don’t know with any certainty how big that pool is?” he asked.

The Nov. 7 vote was tabled last month for more discussion and comes exactly a year after the STR task force first met in 2022.

Homes in the historic district

The City council and Planning & Zoning Commission (P&Z) have considered about a dozen of R2 historic properties for a CUP, Shelley Becker said, and three or four of those were new because owners failed to renew the previous STR permit.

According to comprehensive plan data, there are about 400-450 short-term rentals in the historic district.

In the city, as of Nov. 7, there were 1,055 active STR permits, 29 needed to be processed and 79 needed corrected information before being processed.

“My wife Bethany and I,” commented John Ellis, “are privileged to have a historic property here in Fredericksburg, that we’ve leased to tenants on a short-term basis when we’re not able to use it.”

Since the last meeting, the ability for a property owner within the R-2 section of the historic district to seek a special exception was removed. Ellis said that classification should continue because of STR owners’ preservation efforts and that because of their age, the buildings are more fit for short-term stays, rather than full-time residency.

He said owners should be allowed to consider developing an STR facility for multiple dwelling units if the property is of sufficient size and character. He said that would be a good use of the properties.

“I think our historic properties are a wonderful gateway for our visitors to come and experience our town and our community and see what is special about it,” McDonald said.

“I take issue with the fact that only STR owners are able to own old homes and live and have a place that is small,” Councilmember Emily Kirchner said. “It’s okay to live in a small home and not be wealthy.”

She acknowledged that there are people who do that here, but said, “we do not want a hollowed-out downtown (from non-residents).”

“It’s a discussion we need to have in Fredericksburg because fair housing is an issue here,” City Attorney Mick McKamie said. “It’s not just affordable housing or low-income housing — it’s the entire market…you don’t want to be there.”

“We are a unique community,” Mayor Jeryl Hoover said, “outbalanced with a number of properties that are STRs that are not available to people for residential use.”

He recognized that residents might not be able to afford those STRs if they were available for residential use, but said they were built and intended to be residencies.

Transfers of STR permits are allowed within 90 days of the sale of a house, only if they are automatic transfers permitted by right.

This does not apply to STRs in zoning districts where they are no longer permitted by right.

The mayor also proposed removing the posting of STR signage, mainly for reasons of staff workload and because law enforcement and first responders have means of identifying STRs. They will still be required to keep an interior posting.

All councilmembers agreed and Fredericksburg Police Chief Brian Vorauer confirmed that patrol cars regularly receive updated lists of active STRs.

The council also:

• Approved giving the City Manager the authority to enter into a Hotel Occupancy Tax Grant Agreement for the 2023-2024 year between the City of Fredericksburg and the Fredericksburg Convention and Visitor Bureau, Inc.

• Approved a sidewalk construction contract, leaving about $10,730 of the budget remaining.

• Approved the Water and Sewer Main Replacement Construction Contract, totaling to $6,000. The project began on the west side of the city, and is working toward Llano Street, Kris Kneese said.

• OK’d the amendment to the Lower Colorado River Authority Electric Easement.

• Appointmented K.K. Welch for a term, Chris Perrenoud and David Shields to the Convention and Visitor Bureau board of directors with terms expiring Sept. 30, 2025.

• In executive session, the council discussed the annual evaluation of City Manager Clinton Bailey.