Centre Wellington defers short-term rental bylaw, zoning amendment until after election

ELORA – Centre Wellington council wrestled with a proposed zoning amendment and licensing bylaw to regulate short-term rentals (STR) and bed and breakfasts in Centre Wellington at its April 27 meeting.

But ultimately, it decided to defer its decision and leave it to the new council to decide after the municipal election in October.

A long line of residents delegated to council pointing out shortcomings of the two proposals, which are separate but work hand-in-hand in addressing STRs and the problems they have created for residents.

Anthea Fisher, a local resident, owns residential space above commercial buildings in downtown Elora. She said the bylaw, as written, would require her to have half of a parking space to be legal.

“It (the half parking spot) has to be owned by us in the C1 zone and that’s impossible,” she said. “Right now, I am legal non-conforming without parking.”

She urged council to defer its decision until such matters have been addressed.

Will Feenstra and his wife own Inner Joy Getaways, a bed and breakfast on rural property outside of Elora.

He was concerned with the extra costs he’ll have to incur due to required inspections and licensing, after already operating the B&B for seven years with no complaints.

“I feel I’m being penalized for being good stewards because of a few bad apples,” he said.

Feenstra also worried the zoning amendment limiting “occasional use” events to 28 per year would mean he couldn’t hold a birthday party for his kids or an anniversary party for him and his wife on their own property.

“If I didn’t have a B&B licence I could do parties. If I get a license, I can’t,” he said.

Erika Montero appreciates some of the changes suggested since the last public meeting on the matter. Limiting STRs to one licence per property, defining a hotel as having six rooms,and grandfathering existing STRs were positive changes, she said.

But she worried the zoning proposal would inadvertently encourage the conversion of long-term rentals to hotels and reduce the rental housing supply.

She said that in the C1 zone, any request to convert a property to a hotel use should automatically require a public meeting and approval by council.

“I’m asking council to follow through on their promise to protect housing,” she said.

Glenn Rumbell has an STR in Fergus and noted the licensing bylaw doesn’t include the fee, which he worries would be too high to be worth it.

And he said there is no renewal process, “and the licence fees are non-refundable, even if I (am denied and) don’t get the licence.”

Elora resident Darcy Saunders said he didn’t like the grandfathering aspect of the proposed bylaw.

“I have houses around me that have turned houses into six-bedroom suites. And they get to carry on, if passed, even if they are not compliant now.

“The zoning amendment deems them all as compliant.”

He also wondered what the distinction was between a six-bedroom home and a hotel.

Council dealt with the proposed licensing bylaw and zoning amendment in the same discussion, raising questions asked by delegations as well as their own.

At first council leaned toward pressing forward with the licensing bylaw and “tweaking” it as issues arose.

But when managing director of planning and development Brett Salmon reminded council that changing a zoning amendment was a different matter from changing a licensing bylaw – the former has legislative requirements like holding public meetings, while the latter does not – council changed its tune.

While councillors didn’t want to punt the issue to a new council, they also didn’t want to force it through without due consideration.

And so, they deferred the decision until after the October municipal election, giving staff time to consider the comments they have heard to date.

“This has been quite the process, but this is how good councils work,” Mayor Shawn Watters said in his summation.

“We are not quite there yet, and I hope the new council will continue this.”