Council grants CUP for Airbnb over objections

Is an Airbnb just another type of rental property or does the short-term nature of its stays make it more akin to a motel?

Greybull Town Council members have been wrestling with that question and others since their September meeting, when Ian Crouse’s request for conditional use permit to operate an Airbnb at 700 N. Third St. generated arguments on both sides of the issue.

The property is in an established residential area. While a dozen or so of Crouse’s neighbors supported the conditional use permit, three property owners voiced strong opposition, including Crouse’s next-door neighbors to the west in Larry and Kathy Mayland, to the north in Vic Strube and to the northeast and across the street in John Coyne II.

All of them consider an Airbnb to be a commercial venture, which is not allowed in low-density residential areas. At the September meeting and in follow-up correspondence with the town, they cited concerns about Crouse operating the Airbnb before obtaining a conditional use permit and the transient nature of guests arriving one day and leaving the next, believing long-term renters with roots or jobs here to be a better fit for their neighborhood.

Crouse countered that far more of his neighbors supported the granting of the conditional use permit, that he has the right to use the property as he sees fit and that an Airbnb would spin off economic development for the town with guests paying for gas, shopping in stores, eating in restaurants, etc.

The conversation resumed at Monday night’s meeting.

Town Attorney Kent Richins began by offering a  compromise, telling the council it could approve the conditional use permit but with the stipulation that it come up for review after one year.  If issues arise and it’s clearly not working, the council could reconsider, he said.

Richins admitted that the town code is “ambiguous” when it comes to Airbnbs and said Greybull isn’t the only municipality struggling with it.  “Part of the problem is that (Airbnbs) are sort of a new thing — they’ve been happening, but they haven’t been on the map,” he said. “Now everybody’s trying to feel their way around the whole concept.”

The council ultimately 4-1 in support of the conditional use permit, with Councilman Gerald Crist casting the dissenting vote.  In September and again on Monday night, Crist said he considers an Airbnb to be a commercial use and that the town’s zoning ordinance prohibits commercial uses in low-density residential areas. 

“We could be opening the door to what Cody’s going through — they approved something that wasn’t allowed in their ordinances and got a lot of lawsuits as a result,” he said. “My other concern is, we have three of (the petitioner’s) closest neighbors who strongly object.  For me, that trumps the CUP.  We don’t want to start a war between neighbors.”

Mayor Myles Foley and Councilmen Chris Dooley, Jeremy Kottman and Blaine Jolley ultimately voted to approve the conditional use permit.  

Foley said other communities are viewing Airbnbs as short-term rentals, not commercial properties.  He added that if the property sells, the CUP wouldn’t be grandfathered; the new owner would also have to request a CUP to operate an Airbnb.

Foley also reminded the council that Airbnb conducts background checks as part of the registration process.  “You’re more likely to get bad people in a rental than in an Airbnb,” he said.

Jolley agreed. “Very seldom do you see an Airbnb in disarray,” he said.

At different points in the discussion, Dooley and Kottman said an Airbnb more closely resembles long-term rental than it does a commercial property.   “We don’t allow anyone to rent a house out?” asked Dooley. “So what’s the difference between a month at a time or a day or a weekend at a time?”

Kottman echoed that moments later, saying, “I understand the traffic they bring, but what’s the difference between what they do and me backing out in the morning, going to work and coming home for lunch?”

In other business Monday night:

• The council supported a proposal from Carrie Hunt, the town’s administrator/finance director, to begin requiring a $500 deposit of anyone wishing to proceed with the purchase of lots in the town’s business park.  

The issue arose after a recent sale of business park land to Koch Properties fell through. Koch Properties wanted to use it as a base of operations, including deliveries, while it worked on the Leavitt Reservoir expansion project.

Hunt said each of the sales comes with up-front costs that the town must pay, regardless of whether the deal closes.  By requiring the $500 deposit, the purchaser — and not the town — would be responsible for those expenses.   If the sale closes, the $500 would be subtracted from purchase price.