East Lyme officials move closer to long-term plan for short-term rentals
May 16—EAST LYME — While cities and towns across the state await guidance from the Connecticut Supreme Court on the legal implications of putting restrictions on short-term rentals, a local panel of volunteers charged with examining the issue have laid out their preliminary findings for the Board of Selectmen.
The Ad Hoc Short-Term Rental Committee on Wednesday presented a status report to selectmen after almost eight months of research, discussion and expert advice. Members were initially given a January deadline to come up with recommendations about "whether and to what extent" local government should get involved, but have held off on making a final recommendation pending the landmark Supreme Court decision expected this summer.
There are currently no state laws regulating short-term rentals, which represent a growing market for online platforms like Airbnb and VRBO that connect anyone who wants to rent out space with anyone who wants to stay there.
The phenomenon as of February accounted for 171 online listings in East Lyme, according to data compiled by the committee through the government services company Granicus. The median nightly rate was $254.
Town attorney Mark Zamarka told selectmen it's unclear how the state's highest court will come down on the fight by Frances Wihbey, a Branford homeowner, to bring in guests for brief stays despite a revised beach association regulation preventing short- term rentals.
Zamarka said the lower court decisions in the case cited an "undisputable right" to rent out one's property.
"And anything that hampers that must be done very, very carefully and very circumspectly," he said.
The committee's status report emphasized the ruling from the state's highest court is likely to impact, to some extent, the validity of any regulations recommended for East Lyme.
Differing viewpoints
But committee co-chairman Gary Cicchiello said the uncertainty doesn't change the fundamental question put before the committee, which he put this way: "Do we want short-term rentals? Do they benefit the community?"
Cicchiello, an injury attorney, presented for selectmen the competing views put forth by members of the public in hearings and written testimony over the past several months.
First, he pretended to be a short-term rental host opposed to regulation.
"My five star short-term rental guests don't only benefit me, they benefit East Lyme," he said. "They pay me money so I can pay my outrageous taxes on time. I maintain my property in better condition so the town looks better. They patronize our local stores and shops. Our restaurants sell more fried clams, pizza slices and ice cream. They pay room occupancy taxes. They promote tourism. They create memories of East Lyme and then promote East Lyme."
Then he represented the argument of those in favor of regulation.
"There are those in town who wish to preserve the small town charm of East Lyme," he said. "These people value community over profits: profits by entities who buy beach communities and rent them out as motels."
Noise and parking
Co-chairwoman Anne Santoro said there is growing consensus within the committee that some level of regulation is warranted.
Committee members include those like Paul Formica, a former state senator and first selectman who owns short- and long-term rental properties in town, and Greg McIntire, a resident of one of the beach communities where residents have been most vocal about short-term rental concerns.
"It's clear there are issues in town," she said. "It's not terrible. I don't think it's overwhelming as it might be in some other communities, but clearly there were complaints: noise and parking and inappropriate use of the land."
An attorney for a short-term rental owner in town earlier this year warned the committee that any restrictions that don't apply uniformly to all residential properties in town could result in lawsuits.
The report said area towns have taken different approaches. Short-term rentals are banned in Ledyard and Noank, subject to a moratorium in Preston, and regulated in the Town of Groton, Bozrah and Lyme.
While the committee awaits word from the state Supreme Court, they recommended selectmen consider changes to the town's noise and parking ordinances so they are easier to enforce.
"These ordinances apply town-wide, can directly contain noise and parking issues associated with short-term rentals and will remain unaffected by the final ruling in Wihbey," the report said.
Selectwoman Candice Carlson welcomed the suggestion as something officials could do now rather than just waiting.
Selectman Don MacKenzie emphasized the need for regulations "with teeth" to counteract a problem he said was evident this week when he saw a golf cart with 11 people on it.
First Selectman Dan Cunningham thanked the committee for its thorough update.
"There's a lot to consider, a lot to think about," he said. "We've got to keep an open mind as we work our way through it."
