New ordinance aims to regulate events at North County vacation rentals

San Luis Obispo County supervisors closed a loophole this week that has allowed owners of vacation rentals in some parts of the county to use their properties as event venues for weddings and other occasions.

The supervisors voted 3-2 to adopt an ordinance for the North County’s Adelaida area that prevents vacation rentals from holding temporary events unless they obtain a permit to do so.

Supervisors Debbie Arnold and Lynn Compton voted against the ordinance, both expressing concern that the new rules would unfairly punish existing rental owners who had been operating in good faith under the rules — or lack of them — that existed when they started their businesses.

But the other supervisors said the potential health and safety issues of having a number of event venues in a concentrated area with narrow roads and fire dangers outweighed the economic concerns.

“This isn’t easy, but this is clear: We have an issue of commercial use versus residential areas,” said Supervisor Frank Mecham, whose district includes the Adelaida area. “I don’t hear anyone that’s opposed to vacation rentals. It’s just what’s taking place on these and the cumulative effects (that) we’re starting to see.”

He added: “Over time, I’ve seen a change in that area in terms of traffic and the incidents that have taken place. We’ve got to respect, in my opinion, the people who live in these areas.”

The ordinance covers about 71,640 acres in the larger Adelaida area and is bounded by the Salinas River sub-area boundary to the west; Highway 46 to the south; Santa Rosa Creek Road, Cypress Mountain Road, and Chimney Rock Road to the east; and Nacimiento Lake Drive to the north, according to a staff report.

At last count, the area contained 51 wineries/tasting rooms, 10 bed-and-breakfasts, 30 vacation rentals, and another 27 sites advertised as venues for weddings and other temporary events, according to the county.

With 500 homes in the area, there is the possibility of significantly more vacation rentals being established, according to a staff report from the Oct. 13 county Planning Commission meeting.

A similar ordinance already covers vacation rentals in Avila Beach, Cambria and Cayucos. An ordinance to cover the rest of the inland areas of the county is on hold.

Supporters say the new rules will protect the rural and agricultural character of the Adelaida area and ensure health and safety issues are addressed while still allowing private property owners to host events.

“With no ordinance, each of the 500 homes here could become an unregulated event venue offering 52 events per year,” resident Diane Burkhart said. “We need this.”

Vacation rental owners and others business owners who rely on weddings and other events urged the supervisors to reduce the area affected by the new ordinance and grandfather existing vacation rentals, or deal with concerns on an individual basis rather than through new regulations.

There also was concern about the fee to obtain a minor use permit, which ranges from $2,000 to $10,000, not including the cost of any studies that might have to be done and any upgrades needed to bring event venues, such as older barns, into compliance with current codes.

“What’s missing is there are people who have invested financially, personally, under policies that were clearly OK,” said Jamie Kirk, a land-use planner representing some of the affected businesses. “It’s a supplemental income, but their livelihood depends on it.”

The supervisors approved the new ordinance as recommended by the county Planning Commission, while also asking staff to help vacation rental owners who have been holding events get through the permitting process as quickly as possible.

The new rules limit daytime visitors to a vacation rental to 18 people. Vacation rental owners would need to get a permit to hold larger events. The proposed ordinance also requires vacation rental owners to send 24-hour contact information to all neighbors within a 1,500-foot radius, and requires new rentals to be at least 1,500 feet away from existing ones.

Sonja Lockshaw, one of the vacation rental owners affected by the new ordinance, said she would go through the permit process to continue holding weddings and other events to supplement her and her husband’s income.

Lockshaw has offered her property, Vintage Ranch, as a vacation rental since 2006. In 2011, she started offering event space at the 66-acre property, which includes a barn built in 1912 and 40 acres of vineyards.

“We’ll move forward and see where it goes,” she said. “We are respectful of our neighbors ... and we put a lot of effort into safety.”

This story was originally published November 16, 2016 at 4:48 PM with the headline "New ordinance aims to regulate events at North County vacation rentals."