Category: Uncategorized

The following is supplementary information to presentations made by concerned residents on September 22, 2021 and by STR owners on October 13, 2021

1) ZONING

As you are aware, our Municipality has two zoning bylaw documents: Bylaw 1311 is specific to the Onanole area. The Residential General Zone provides for low density one-family residential development as well as two-family and moderate density multi-family residential development as a conditional use. The central issue to the debate regarding STRs is clearly zoning. Ultimately, they violate the essence of residential zoning bylaws.

The Urban Use Table outlines permitted and conditional uses in the Urban Area Zone. Table 7-1 found on page 27 in Part 7 lists some of the commercial businesses not permitted in a residential zone: such as bakeries, cafes, retail stores, automotive shops, hotels and motels. Some businesses may operate in a residential zone such as bed and breakfasts (conditional use) or home-based businesses as an accessory use (permitted or conditional depending on the zone).

The interpretation of hotels is found on page 62 of the document: it “means a building wherein accommodation is provided to transient lodgers, in any room or individual suite, with or without cooking facilities…”. This best describes short-term rental operations. According to the bylaw they should be restricted to commercial zones.

2) INCREASING TAX BASE?

Current STR owners have alleged that their operations somehow increase the tax base of the municipality. How? When they purchase existing properties, the tax paid remains the same. When they build new structures, the tax paid reflects the value of the new structure, which, in many cases, is a low-cost structure yielding less taxes than what a higher quality structure would provide. One need only observe the significant investments made by legitimate residents in both new and renovated homes to see that they are the real contributors to new additional taxes for the municipality.

Regarding the overall trend in increasing property market values, it is common knowledge that when overall values go up, mill rates come down, leaving taxes collected the same.

3) DOLLAR FLOWS INTO THE COMMUNITY?

The dollar flow created by STRs goes primarily to the owners collecting their short-term rent.

Whether it is groceries, fuel, hardware, restaurants, or coffee shops, regular residents are more likely to support local businesses than STR renters who are likely to bring plenty of supplies with them, party and leave.

Most “visitors” to the area are likely to spend their spare dollars in Wasagaming rather than in the Municipality of Harrison Park. And we know that the visitations to the Riding Mountain National Park
are already growing exponentially. STR renters outside the National Park represent a very small number relative to total visitor counts.

4) CREATING LOCAL EMPLOYMENT?

The busiest time of the year for services in this area is the summer months when local employers are already extremely short staffed.

For much of the year, many regular residents, especially some busy people who have limited time at their vacation home, employ gardeners, landscapers, yard maintenance businesses, cleaners, and the like. Most local residents need plumbers, electricians, carpenters, painters, arborists and septic services. General contractors are backed up with work. STRs might supplement those jobs, but by no means are they a sole or primary source of such work. In fact, some STR owners either do the work themselves or use individuals/businesses outside the Municipality. Moreover, STRs mainly require cleaning staff, who are part time workers.

5) PROVIDING YEAR-ROUND ACCOMMODATIONS & THE COTTAGE EXPERIENCE?

People who do not want to own a vacation property or cannot afford one, have many options in this area: camping at many sites in the area, mobile home and trailer parks, the old campground in Wasagaming, chalets and cottages in Elkhorn Resort, small cottages in the many commercial establishments in Wasagaming, plus lodges and hotels. There are full time legitimate bed and breakfast facilities in the Onanole area. In addition, some local residents have opted to rent out their bunk houses while they maintain occupancy of their main residence. That works too. But there is no need to insert commercial STRs into residential areas.

On the other hand, those who would like to rent a cottage home for a portion of the season, to achieve that “cottage experience”, should have the option to rent anywhere for periods over 30 days, including in our residential areas.

Ironically, based on the very high rates charged for some STRs on a per night basis, anyone wanting to rent a place for a month would potentially need to pay upwards of $12,000.00 for that privilege.

6) A GROWING INDUSTRY SERVING TOURISM?

STRs do not bring tourism to a community. It would be like saying STRs / hotels bring people to Winnipeg. Art festivals, concerts, pro sports, restaurants, parks and zoos, etc. bring the people, not hotels. RMNP is a tourist attraction, and the golf courses, restaurants, shops, trails, boating, and gatherings for weddings and events bring tourists to our community. STRs do not.

In fact, when the Covid 19 pandemic subsides and travel restrictions are eased/lifted, there may be times when legitimate local hotels and lodges and cabins may see a decline in localized tourism as people venture to further destinations. At that point, STRs would only be making business challenges worse.

In the end, many businesses serve tourism. They operate in appropriately zoned areas but short-term rentals do not.

7) LACK OF ALTERNATE PROPERTY FOR INVESTORS?

STRs are commercial investors who have found residential areas to pursue their business of being hotel owners. Why? If they want to engage in the accommodation industry, then build a hotel, motel, condo development, etc. in the appropriate zone. We know that some commercial short-term rental properties in Wasagaming are ripe for renewal and renovation. Do that.

Outside the Park, the Municipality of Harrison Park needs to identity and set aside commercial or multi family residential zones or condominium projects where STRs are fully permitted and internally regulated by the owners. That has happened in numerous urban zones. Yes, these are long term projects, but all good urban planning takes time and patience.

8) WHAT HAPPENS TO CURRENT STR “INVESTMENTS”?

Our understanding is that owners of current STRs did not seek permission from the Municipality of Harrison Park to operate their businesses in residential zones. As such, they took a risk. Should the Municipality decide to prohibit STRs in residential zones, current owners would not lose their investment. Rather, as mentioned in our first presentation, those owners could choose one of the following options:

• occupy their properties as homes, just like other residents
• sell their property to individuals intending to use it as a home or vacation property
• rent their properties for periods exceeding 30 days.

9) WHY CONSIDER RENTING FOR PERIODS EXCEEDING 30 DAYS?

Renting a residence for periods exceeding 30 days (conditional use):

• could provide accommodations for seasonal workers and long-term vacationers
• allows renters to become part of the neighbourhood and if any issues arise, they could be resolved quickly as with any neighbours

10) WHY NOT JUST “REGULATE” THE INDUSTRY?

If the Municipality tried to regulate these personal hotels, their numbers could potentially double or triple and the essence of our community would be negatively impacted to a higher degree.

Other jurisdictions that have tried licensing and regulating STRs have found that it is a bureaucratic nightmare, costly, and essentially unworkable.

We are a rural/urban small municipality that totally lacks the personnel to perform that task.

Condominium developments that are built for the purpose of allowing STRs do work. They exist in many vacation destinations.

And of course, the construction of hotels, lodges, and rental cabins in appropriately zoned areas would better serve the accommodation industry than STRs.

11) OFFER TO PAY COMMERCIAL TAXES?

That proposition has been put forward by current STR owners. It is ironic and duplicitous. If STRs are indeed commercial enterprises, they have no right to exist in residential zones. Yes, pay commercial property taxes when you locate in commercial zones.

12) WHAT ABOUT GRANDFATHERING EXISTING STRS?

Based on current bylaws, STRs are essentially illegal in residential zones. If new bylaws clarify that fact, so much the better for all. But, if anything should be grandfathered, the priority should be the entire group of residential property owners who have made this community their home. They are entitled to the protection of their major investments in their homes, whether they be part time or permanent residents. They never signed up to live in a hotel/commercial zone.

13) RESIDENTIAL NEIGHBOURHOODS

Everyone understands the concept of having “good neighbours”. They may not be your best friends, but they live next to you. You know each other. You sometimes exchange favours and needed assistance, watch out for one another and share your love of the neighbourhood you live in. Residents take great pride in their community by promoting it and showing support in a variety of ways. ie. volunteering, backing local events, etc.

An STR next to your home meets none of those criteria. In fact, it is the opposite. The continuous turnover of strangers never stops. They want to fully enjoy their rental with maximum number of guests to make their stay affordable at the expense of the residents in that neighbourhood.

It is noteworthy that STRs can create environmental concerns. In residential areas where septic fields are still allowed, the amount of sewage created is far in excess of normal family usage. Furthermore, the larger use of well water by STRs may contribute to the depletion of scarce water supplies, especially in times of drought.

Finally, and contrary to what has been stated by one of the STR owners, we have no problem with conventional home-based businesses operating in residential areas. Those kinds of businesses are outlined in current bylaws.

14) PINAWA

We previously offered some relevant examples of jurisdictions that have developed specific bylaws to deal with STRs. Those examples continue to increase.

But one that is noteworthy is the community of Pinawa, Manitoba. They recently passed an amendment to their zoning bylaws: “Short-term rentals of less than 30 days duration shall not be permitted in residential zones.” Period. Simple and effective. Page 20 DownloadDocument (pinawa.com)

We understand the municipality of Pinawa based their bylaw on the happiness of their residents, their quality of life, and the neighbourhood. We ask the Municipality of Harrison Park to follow the same course of action regarding short-term rentals.

Good evening reeve and councillors, thank you for allowing us to present information on short-term rentals. My name is Ralph Clark and I along with some others are a group of volunteer neighbourhood representatives from each identifiable neighbourhood in Onanole. We are sponsoring this presentation. We represent the vast majority of local single family residential homeowners. A list of the representatives is attached at the end of the presentation notes. Please note Perry Au residential area should read “Poplar Avenue”.

Does everyone remember their first home and how excited they were to move in? Personally, my wife and I have fond memories of that time and remember the connections we soon made with our neighbours. They became an extension to our family. Councillors present today will know that local residents view their property as their special place. Whether it is their weekend and/or vacation retreat, or their eventual retirement home, or their place to work and raise a family, it is their special place.

The phenomenon of short-term vacation rentals is relatively new to our area. They are commonly referred to as Airbnb’s, VRBO’s, Home To Go, etc. They were intended as temporary use of extra space in someone’s primary residence.

The number of short-term rentals (STR’s) in our municipality has increased significantly in the past years, particularly in the Onanole area. Most are now established in single family residential neighbourhoods. Just recently, we have seen a single owner/operator of STR’s acquire three properties on one neighbourhood street. One residential owner in the Onanole area stated, “In 2010 I chose to move from
Winnipeg and invest all in this community, to live year-round in a zoned residential area. As of this past winter/summer, I’m now surrounded on all sides by Airbnb’s. This personal and community impact is untenable but reversable.” STR’s violate the essence of single-family residential zoning. They are commercial enterprises (open 24 hours a day, 7 days a week, and 365 days a year) which are totally inappropriate and unanticipated. This is no different than opening up a business such as a repair shop in a residential area. Both are unacceptable. Communications from one local Airbnb operator tells the tale when he describes his properties as being part of this new “industry” serving tourism.

STR’s are frequently overcrowded with excess numbers of guests, sometimes involving travel trailers, motorhomes, ATVs, boats, and extra passenger vehicles parked at the same address.

STR’s often have absentee owners who are unavailable to address immediate problems such as excess noise and inappropriate behaviour of guests, which can also include outdoor fires during a fire ban, and leaving out garbage that attracts wildlife such as bears, skunks, and racoons.

STR’s can have a negative impact on the character of a neighbourhood when taking into account that the people occupying the residence are entirely transient. Likewise, the absentee owners have no commitment to the community, and may neglect the appearance and care of the property and neighbourhood as it is not their permanent residence or vacation home.

Unlike commercial bed and breakfast establishments, and hotels and lodges, STR’s do not pay commercial property taxes, hotel taxes and other such levies. They are essentially “underground” commercial enterprises that are unregulated and unmonitored. Likewise, when compared to legitimate commercial operations providing short term accommodations, STR’s circumvent the many rules and regulations pertaining to health and safety. For instance, legitimate bed and breakfast establishments with four or more rooms collect PST and GST, have regular on-site inspections, must provide adequate parking, and otherwise have full-time on-site supervision.

STR’s can seriously undermine the value of adjoining properties. Few legitimate residents would care to live next door to an STR property. So, resale values of legitimate residential properties are very negatively affected. More importantly, the quality of life of adjoining owners is negatively affected. They are legally and morally entitled to “quiet enjoyment” of their residential property. On the other hand, investors in STR’s compete with legitimate single home buyers for available properties, which can result in individual home buyers being pushed out of the market by these commercial enterprises which will pay excessively high prices for properties based on their commercial value rather than residential value.

When legitimate residential home buyers are pushed out of the market, it becomes difficult for families to establish homes. These homes are for those who own or work for local businesses and for government workers. These residents may have children who attend local schools. Many can be involved in the community as volunteers. It is well known that this area has become the home for many
active and involved retired people. All of these people are passionate about their community and give generously of their time to make our community a special place to call home.

STR’s are essentially prohibited in neighbouring Wasagaming, as they violate the terms of the long-term land leases which are established by Parks Canada.

My wife and I purchased our cabin back in 2005. Initially the intent was to use it during the summer and for the odd weekend while we were still working in Brandon. We fell in love with the neighbourhood and community for all the reasons outlined in the Municipality of Harrison Park mission and vision statements.

It was welcoming and safe. As years passed, our casual use on weekends evolved into returning to the cabin every weekend. In 2018 it became our permanent home. We had no regrets until this past summer. There is nothing more disturbing than having an adjacent property become a turnstile of transient party goers. This has certainly deprived us of a quiet enjoyment of our home. In an eleven-week period starting June 19thof this year, we have contacted the owner on seven different occasions and the RCMP twice. Prior to this summer including the time we purchased our property in Onanole and the thirty years we lived in Brandon, we have never had a reason to contact anyone regarding a residential disturbance.

Proponents of STR’s may argue that they are good for tourism, good for property values, and good for providing a strong resale market. We believe the facts that have already been outlined refute those positions. Rather, we suggest that those who wish to invest in short term rental accommodations should do so on appropriately zoned property, should build multi unit accommodations with on site management, and should operate like all other commercial enterprises. If “investors” wish to own revenue property in this area, they should serve the needs of the long-term renters, not compete with commercial short-term rental business.

PROPOSALS TO CONSIDER:

STR’s have become a major problem for communities throughout the world, especially for those that are vacation destinations. The problem, as outlined above, centres around the destruction of residential neighbourhoods and the loss of available properties for legitimate residential homes in areas that tend to be high-cost housing. That includes the loss of long-term rental properties. Some jurisdictions have tried to “regulate” the STR industry. That has tended to be unworkable and bureaucratically costly. Moreover, the main problems still exist. But the one common thread that has been adopted by many communities is the prohibition of STR’s in single family residential zones.

STR’s are not:

• homeowners renting for long terms (30 days plus),
• homeowners in residence who welcome guests,
• homeowners who rent their bunkhouse,
• legitimate bed and breakfast establishments,
• lodges with on site management,
• condos in a condo development that set their own rules for STR’s,
• multi family residential developments in appropriately zoned areas.

We offer examples of two communities that have effectively dealt with this matter.

Canmore, Alberta is a community very much like Onanole, as it adjoins a national park and is growing as a destination for vacationers and for full time residents. For all the same reasons as our very own Onanole, it has had to deal with STR’s. A link to the bylaw provisions is found in your presentation notes. They appear fair and effective. STR’s are prohibited in single family residential zones. Where they are allowed, it is under specific rules.
https://canmore.ca/municipal-services/residents-development-planning/building-development/vacation-rentals

Palm Desert, California is one of five cities adjoining Palm Springs. All of those cities, being part of a hugely popular destination area for vacation/permanent residence properties, have had to deal with the influx of STR’s that did not exist only a few decades ago. Palm Desert’s bylaws are succinct and well accepted by the population for all of the same reasons we are here today. The latest version of their bylaws that apply to planned communities have been challenged in court and upheld as valid. Similar bylaws have taken effect in adjoining cities. One city even held a plebiscite on the issue. Voters were in full support of controls for STR’s.
https://www.cityofpalmdesert.org/our-city/departments/planning/vacation-rental-moratorium

Questions
What happens to current STR’s should the Municipality choose to prohibit them in residential zones? We suggest that current owners can choose to:

• remain owners of the properties that they have acquired
• live in them as vacation or full-time homes like the rest of their neighbours do.
• hold them for long term rentals
• place the properties back onto the resale market

We would be ready and willing, should council wish to call on us, to participate in formulating appropriate bylaws.

Short-term rentals are somewhat unique to this municipality compared to others in the province of Manitoba, including other municipalities with resort destinations in them. We are adjacent to a national park and the housing development in our area is expanding in an unprecedented way. Your council has the opportunity to set a positive precedent which will protect the residents in this municipality from short-term rentals located in single family residential zones and to provide affordable housing for all.

The challenge is yours.