Peru council talks about short-term rental guidelines

A little more than a month after the Peru City Council received a special-use permit request for a short-term rental property, aldermen are considering the guidelines for them.

Corporate Counsel Scott Schweickert on Monday provided the council with a draft of a proposed ordinance pertaining to short-term rental properties and bed-and-breakfast establishments. No rules have been set as of yet, but conversations continued at Monday’s meeting.

The proposed ordinance identifies short-term rentals as “a dwelling unit that is offered for rent to guests for a period of less than 30 consecutive days at a time.” The most common short-term rentals include Airbnb and Vrbo.

The proposed ordinance outlines numerous requirements for an operator to obtain a license to run a short-term rental or B&B, including a $250 application fee, a $50 deposit for a lawn sign for notice of a public hearing, and at least $500,000 of liability insurance through a provider or a hosting platform.

Alderman Mike Sapienza said the council should look at where the city will allow rentals rather than where it will forbid them.

Alderman Jim Lukosus asked whether a regulation identifying an area where short-term rentals and bed-and-breakfasts was prohibited would be considered discriminatory.

Schweickert said it could be susceptible to a challenge.

After an operator submits an application to the city, he or she will be referred to the city’s Planning and Zoning Commission, and a date for a public hearing will be set, according to the draft ordinance. Once the public hearing is scheduled, the city will mail a notice to the properties within 200 feet of the subject property.

Sapienza said the council may want to consider stretching the notice to 300 feet because of the potential noise. Mayor Ken Kolowski said the most important consideration to him is to protect the residents and the city.

“The mayor and I are in agreement with protecting the citizens, and [short-term rentals] are No. 1 to bring something new and change [residents’] environment,” he said. “Maybe we need to look at 300 feet and give those people a real definite say, and think about the percentage of people to say yes.”

If the application is approved, the operator will be required to pay a $150 inspection fee every year before license renewal.

Alderman Jason Edgcomb said the people who have reached out to him would like the see the council try to push the rentals into business districts in the area.

Kolowski asked the council on April 24 to table a special-use permit request sought by Francisco Sandoval concerning a property at 4 Center Place. He said he wanted the aldermen to do research and speak with their constituents.

On May 22, Schweickert provided the council with a rough draft of a proposed ordinance right before the meeting for the aldermen to review. He said other communities were struggling with regulating short-term rentals and told the council the ordinance will require time and effort.