- May 2, 2024
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Before city commissioners discussed expanding the vacation rental ordinance citywide on Monday, they heard from City Attorney Robert Fournier about potential legal challenges to the existing ordinance applied to the barrier islands.
The owners of three vacation rental homes, all under separate limited liability corporations, allege loss of property values because of occupancy restrictions in the ordinance. All three have a principal address of 1144 Tallevast Road, Suite 109-110. Authorized parties are John Hutchins of Casto Vacation Properties of Lakewood Ranch, and Adam Mott and Jennifer Mott of Bradenton.
The challenge falls under the Bert Harris Act, the 1995 legislation that created a cause of action for aggrieved property owners who demonstrate that governmental action “inordinately burdens” property and provided a formal process for resolving differences between land owners and governments.
All three homes are on Lido Key. Two of them — 234 Grant Drive and 209 Garfield Drive — are zoned multifamily, which under the ordinance caps overnight occupancy at 12 people or two per bedroom, whichever is less, plus two additional persons. One home at 24 N. Polk Drive is zoned single family, where occupancy is limited to 10 people or two per bedroom, plus two additional persons.
All three properties can accommodate 16, and the restrictions, the owners claim, have resulted in diminished property value — collectively $4.56 million. Those valuations are based on private appraisals.
Commissioners voted unanimously to defend the ordinance, if it comes to that.
“There could be some basis for an argument that there's no loss of value,” Fournier said. “I can't get into what that is and I'm not qualified to say. I’m just aware that potentially there is some basis for that.”
Fournier told commissioners their options include a settlement agreement brought forth by the owners that will permit them to operate at their capacity in exchange for a higher level of scrutiny; let the matter go to court; or offer a settlement to allow them to operate at capacity with a step-down over three years until meeting ordinance compliance.
“I would want to defend it. At the same time, I don't know if there's been any research on the pricing models and the valuation models for a six-bedroom house on Lido,” said Commissioner Debbie Trice.
Vice Mayor Liz Alpert offered a contrarian viewpoint.
”I think that the best regulation is what we're doing in terms of having them register and having somebody to call if there is a problem,” she said. “I don't know how the difference between whether you have four more people or two more people is going to change that fact. They still would have to follow all of those regulations.”
Fournier suggested commissioners consider a counter-offer that would demonstrate a good-faith negotiation should the matter go to court. That could go a long way toward shielding the city from opposing counsel fees, or even allow the city to recover its own fees should it prevail.
Commissioners agreed to offer operating for three years at their capacity of 16, under the additional scrutiny measures, before coming into compliance with the ordinance.
