[Proclamation for the Billie Jean King Cup Event]
[00:01:51]
OFFICIALS AND FANS CELEBRATING THE SPIRIT OF RESILIENCE, EXCELLENCE AND SPORTSMANSHIP THAT UNIFIES US ALL OR UNITES US ALL. NOW, THEREFORE, I, GEORGE FULLER, BY THE POWER VESTED IN ME AS MAYOR OF THE CITY OF MCKINNEY, TEXAS, DO HEREBY PROCLAIM NOVEMBER 16TH AS BILLIE JEAN KING CUP DAY IN MCKINNEY, TEXAS, CALLING UPON ALL CITIZENS TO WELCOME BOTH UKRAINE AND AUSTRIA. PLAYERS, COACHES AND VISITORS COMING TO PARTICIPATE IN THE BILLIE JEAN CUP. WITNESS MY HAND AND SEAL THIS FIFTH DAY OF NOVEMBER 2024. SECOND. GREAT. THANK YOU FOR GIVING US A MINUTE HERE. BUT YEAH, WE JUST WANT TO SAY WE'RE CERTAINLY REALLY EXCITED THAT THE CITY HAS BEEN BEHIND THIS TENNIS CENTER SINCE DAY ONE. AND IF IT WASN'T FOR THE SUPPORT OF THE CITY COUNCIL, THE PARKS AND RECS AND ALL THE COMMUNITY, WE WOULDN'T HAVE ONE OF COME TO TOWN, BUT ALSO ONE THAT'S COMING FOR SUCH A GOOD CAUSE AS YOU MENTIONED. SO THANK YOU ALL VERY MUCH. AND THAT'S I. THANK GOD. THANK YOU. THANK YOU. THANK YOU. THANK YOU. SHE GETS NERVOUS AND LEAVING. THANK YOU. ALL RIGHT. NEXT IS AGENDA ITEMS FOR THE CITY COUNCIL TO DISCUSS.
[PUBLIC COMMENTS ON AGENDA ITEMS]
ACTUALLY, PUBLIC COMMENTS. I'M SORRY. AND WE DO HAVE. FLOW. IF YOU WOULD COME UP.JUST TALK. TALK. HELLO. MY NAME IS LOREEN HENRY. I LIVE AT 905 SOUTH MARY STREET HERE IN MCKINNEY, TEXAS. I CAME TO COMPLAIN ABOUT MY HOME. I FILLED OUT AN APPLICATION FOR THE CITY TO GET SOMEONE TO DO MY HOUSE. MY HOUSE IS DESTROYED. THE PEOPLE WHO DID IT IS A HUGE HOLE. THE HOUSE IS FALLING IN. YOU HAVE PICTURES THERE THAT YOU CAN LOOK AT TO SEE HOW THE WALLS ARE COMING APART. MY HOUSE IS DESTROYED. SO YOU ALL GOT TO DO SOMETHING ABOUT THAT. BECAUSE THIS IS THE CITY. HIRED THESE PEOPLE TO FIX MY HOUSE, AND THEY DIDN'T DO IT. AND I'M GETTING UPSET. I'M GOING TO THE NEWSPAPERS. IF THEY DON'T DO SOMETHING, I'M GOING TO THE WORLD. I'M TELLING YOU, BECAUSE I WORKED HARD FOR THAT HOUSE. IT'S JUST ME. NOBODY BUT ME. AND I WORKED HARD FOR THAT HOUSE. I PAID FOR MY HOUSE AND MY CAR, AND THEY YOU CAN LOOK AT IT. I DON'T KNOW WHAT TO DO ABOUT IT. I MEAN, THE HOLE IS HUGE AND THE WALLS ARE CRACKING. I DON'T KNOW WHAT TO DO. I DON'T TELL MY SON. MY SON DON'T KNOW IT. AND WHEN HE DO,
[00:05:04]
HE GOING TO BLOW OUT. HE DOESN'T EVEN LIVE HERE. AND I HAVEN'T. HE DON'T KNOW WHAT I'M GOING THROUGH NOW BECAUSE HE'S GOT HIS OWN PROBLEMS. BUT I'M ASKING YOU ALL TO PLEASE HELP ME FIX MY HOUSE BACK. THEY HAVE DESTROYED MY HOME, AND I CAN'T HARDLY TAKE IT ANYMORE. I'LL BE 90 ON MY BIRTHDAY AND I'M TIRED. I'M 61 YEARS. AND I KNOW PEOPLE. THEY CAN DO BETTER THAN THIS. AND I'M BEGINNING TO GET ANGRY. IT'S NOT GOOD FOR ME TO GET ANGRY. I'VE TAKEN A LOT, AND I'M NOT GOING TO TAKE ANY MORE. I'M GOING TO GO TO WHOEVER I NEED TO. SO I'M MISSING YOU ALL. PLEASE HELP ME GET SOMEBODY IN THERE AND FIX MY HOME. THIS IS MY HOME. I WORKED HARD FOR THAT HOUSE BY MYSELF.MY HUSBAND THE FACT THAT I DON'T WANT TO CRY BECAUSE I'M GETTING ANGRY.
BUT THIS IS I'M NOT FUSSING AT YOU. I'M JUST LETTING YOU KNOW HOW I FEEL. AND I KNOW I CAN DO IT CAN BE DONE BETTER. I HAD A GOOD HOUSE. MY FOUNDATION WAS GOOD. THE HOLE IS HUGE. HE WAS TALKING TO ME IN MY LIVING ROOM WHILE SOMEONE WAS DIGGING THAT BIG HOLE IN MY WINDOW. YOU GOT PICTURES UP THERE? I GAVE YOU PICTURES. THERE'S PICTURES OF SOME OF US. SOME OF MY HOUSE.
IT'S BAD. AND I CAN'T TALK ANYMORE. JUST TRY TO GET SOMEBODY TO HELP ME FIX MY HOUSE, PLEASE. THANK YOU. SO, SO, YOU KNOW, WE HAD AN INSPECTION COMPANY GO OUT YESTERDAY, AND WE DON'T HAVE THE RESULTS BACK YET, BUT WE DO HAVE AN INSPECTION COMPANY THAT'S GONE OUT THAT THE CITY, THE GUY THAT CAME OUT THERE YESTERDAY, THEY WERE THERE YESTERDAY TO INSPECT. AND JUST ONE. WHAT'S THAT? ANNOUNCE THE RESULTS. MAYBE TODAY. ANY TIME NOW. AND WE WILL ABSOLUTELY LOOK AT IT. AND BECAUSE THEY HAVEN'T GONE TO THE CITY, HAVEN'T GONE TO THE NEWSPAPERS, THEY HAVEN'T GONE ANYWHERE. BUT I'M READY TO START BLASTING. LET US GET THE REPORT AND WE'LL. AND WE'LL GET WITH YOU. ALL RIGHT. THANK YOU VERY MUCH. THANK YOU ALL FOR BEING NICE AND FOR LISTENING. THAT'S ALL I HAVE. THAT'S SIGNED UP NOW. REGULAR AGENDA. IS THERE ANYTHING THAT ANYONE WOULD LIKE TO DISCUSS WITH STAFF EITHER
[Informational Update Regarding Short-Term Rentals in McKinney]
HERE? IF NOT, WE'LL MOVE ON TO OUR WORK SESSION. ITEM 24. 2133 INFORMATIONAL UPDATE REGARDING SHORT TERM RENTALS IN MCKINNEY. GOOD AFTERNOON, CAMERON CHRISTIE PULSE. SO WE'RE GATHERED HERE TODAY TO TALK ABOUT SHORT TERM RENTALS, WHICH HAVE INCREASED PRECIPITOUSLY IN THEIR PREVALENCE OVER THE PAST 5 TO 10 YEARS. AND WE WANT TO TAKE A CLOSER LOOK TO SEE WHAT THE CURRENT STATE OF THEM IN THE CITY OF MCKINNEY IS. SO FIRST, DEFINING SHORT TERM RENTALS HARDER THAN YOU MIGHT THINK, BECAUSE THE CITY OF MCKINNEY DOES NOT ACTUALLY CURRENTLY HAVE A DEFINITION FOR SHORT TERM RENTALS IN OUR ZONING CODE. THAT SAID, FOR A SORT OF A COMMON LANGUAGE DEFINITION, A GOOD ONE WOULD BE THAT SHORT TERM RENTALS ARE RESIDENTIAL UNITS THAT ARE RENTED OUT ON A SHORT TERM BASIS, USUALLY LASTING LESS THAN A MONTH. AND THAT'S A DEFINITION THAT IS MORE OR LESS IN LINE WITH THE ONE THAT OUR SISTER CITIES USE RENTALS IS THAT WE DO NOT CONSIDER THEM DIFFERENT FROM THE RESIDENTIAL USE THAT THEY RECEIVED A BUILDING PERMIT FOR. SO IF YOU WERE TO SAY, USE A SHORT TERM OR EXCUSE ME, USE A DUPLEX UNIT AS A SHORT TERM RENTAL. AS FAR AS ADMINISTRATION AND REGULATION GOES. A DUPLEX IS A DUPLEX IS A DUPLEX. WHETHER IT IS A OWNER OCCUPIED UNIT, LONG TERM RENTER OCCUPIED, OR SHORT TERM RENTAL. THE ONE EXCEPTION TO THAT IS THAT SHORT TERM RENTALS ARE REQUIRED TO PAY THE HOTEL OCCUPANCY TAX. NUISANCE ISSUES FOR SHORT TERM RENTALS ARE HANDLED THROUGH CODE ENFORCEMENT, AND AGAIN, BECAUSE THEY ARE NOT ANY DIFFERENT FROM OTHER RESIDENTIAL USES, THEY'RE HANDLED IN THE EXACT SAME WAY. AND KIND OF THE CONTEXT FOR WHY WE'RE HERE TODAY. BACK IN 2016.STAFF WAS DIRECTED TO MONITOR NUISANCE FOR A KIND OF 30,000 FOOT.
OVERVIEW. THIS IS A SNAPSHOT OF SHORT TERM RENTAL LISTINGS IN AND AROUND MCKINNEY IN APRIL
[00:10:01]
2024. AGAIN, THIS IS JUST A SNAPSHOT. IT'S NOT A DEFINITIVE LIST OR ANYTHING, BUT NOTABLY, THAT'S UP FROM JUST A I THINK IT WAS LIKE 201 IN SEPTEMBER 21ST. SO A PRETTY SIGNIFICANT INCREASE. AND AS YOU CAN SEE, THEY ARE HEAVILY CONCENTRATED IN OUR HISTORIC DISTRICT. WHEN IT COMES TO SHORT TERM RENTALS, THERE ARE A COUPLE SPOTS THAT ARE WORTH TAKING A REALLY CLOSE LOOK AT. ONE IS HOW THEY INTERFACE WITH TOURISM IN THE CITY OF MCKINNEY, WHAT THEIR IMPORTANCE IS, ANY POTENTIAL NUISANCE ISSUES THAT CAN ARISE BECAUSE OF THEM. AND WE REALLY WANT TO DISCUSS THE UNCERTAIN LEGAL AND BUT BEFORE WE GET TO THAT, I WANT TO TALK ABOUT WHAT WE USE THAT HOTEL OCCUPANCY TAX FOR. SO IT HELPS FUND CONSTRUCTING AND IMPROVING CONVENTION CENTERS. IT FUNDS THE MCKINNEY CONVENTION AND VISITORS BUREAU, WHICH DOES INCLUDE VISIT MCKINNEY. IT CAN BE USED FOR PROMOTION OF THE ARTS AS WELL AS HISTORIC PRESERVATION AND RESTORATION. THESE ARE THE JUST ABOUT THE ONLY THINGS THAT CAN BE USED TO FUND, AND THAT IS BY STATE LAW. BUT ALL OF THESE IMAGES HERE ARE OF PROJECTS OR EVENTS THAT WERE IN PART FUNDED EITHER DIRECTLY OR INDIRECTLY THROUGH THE HOTEL OCCUPANCY TAX. AS FAR AS COLLECTING, SAID TAX, THE CITY'S CURRENT APPROACH IS WE WORK WITH HOTEL OCCUPANCY TAX AS A LUMP SUM COLLECTED AS A LUMP SUM. THEY DON'T GIVE US DATA ON HOW MANY PEOPLE OR WHERE THEY ARE, ETC. IT'S JUST THE AMOUNT. WE DON'T HAVE A DATABASE OF SHORT TERM RENTALS AND BECAUSE OF THAT, IT'S HARD TO JUDGE THE GAP BETWEEN THE POTENTIAL HOTEL OCCUPANCY TAX WE COULD BE COLLECTING AND WHAT WE'RE ACTUALLY COLLECTING. AND COMPLIANCE IS RELIANT ON PROPERTY OWNERS TO REMIT GOING FORWARD. HOWEVER, THE CITY IS GOING TO BE WORKING WITH OTHER VENDORS TO HELP COLLECT THAT HOTEL OCCUPANCY TAX. MOST VENDORS ARE RIGHT NOW HESITANT TO COLLECT AND REMIT HOTEL OCCUPANCY TAX. I KNOW FINANCE IS WORKING ON A PROPOSAL TO CHANGE ORDINANCE TO HELP FACILITATE THAT, AND FINANCE IS ALSO CURRENTLY CONTRACTING WITH A VENDOR CALLED GOV OS TO HELP OVER TIME, RATHER THAN JUST THAT SNAPSHOT, IT WOULD LIST ALL THE ADDRESSES AND DETERMINE WHEN THEY'VE LIKELY BEEN OCCUPIED. SO WE HAVE AN IDEA OF WHAT THE DIFFERENCE BETWEEN POTENTIAL AND ACTUAL HOTEL OCCUPANCY TAX IS. AND THEN DEPENDING ON HOW THAT SHAKES OUT, THERE IS THE POTENTIAL TO EXPAND THE CONTRACT TO INCLUDE A CENTRALIZED PAYMENT PORTAL THROUGH GOV OS FOR HOTEL OCCUPANCY TAX. BUT THAT'S NOT SET IN STONE OR ANYTHING, JUST AN OPTION. DESPITE GROWING IN PREVALENCE, DEFINITELY AND PRECIPITOUSLY OVER THE PAST FIVE YEARS, IT SHOULD BE MENTIONED THAT SHORT TERM RENTALS STILL ONLY PLAY A RELATIVELY SMALL PART IN THE HOTEL OCCUPANCY TAX REVENUE. THE BLUE IS TRADITIONAL HOTELS, THE ORANGE BEING SHORT TERM RENTALS, SO DEFINITELY ON THE RISE. BUT THEY'RE STILL JUST A IN COMPARING HOTELS AND SHORT TERM RENTALS AND HOW THEY WORK TOGETHER IN TANDEM TO FACILITATE TOURISM IN MCKINNEY. THE GIST OF IT IS THAT WE HAVE MORE HOTEL ROOMS OVERALL, AND MORE PEOPLE ARE STAYING IN HOTELS, BUT THE PEOPLE WHO STAY IN SHORT TERM RENTALS TEND TO STAY IN THEM LONGER AND PROVIDE MORE REVENUE PER STAY. ANOTHER INTERESTING QUIRK IS THAT PEOPLE TEND TO BOOK HOTELS CLOSER TO THEIR VACATION, WHEREAS SHORT TERM RENTALS TEND TO BE BOOKED FURTHER IN ADVANCE. BOTH OF THEM DO PEAK IN DEMAND IN APRIL, AND MAY. NOT COINCIDENTALLY, AROUND BYRON NELSON. MOVING ON TO NUISANCE LAW AND HOW IT'S ENFORCED REGARDING SHORT TERM RENTALS. WE DO NOT HAVE ANY CODE SPECIFIC TO SHORT TERM RENTALS CURRENTLY. AGAIN, NUISANCE LAWS ARE JUST ENFORCED THE SAME THEY WILL RESPOND TO SAID COMPLAINT. THE ONLY EXCEPTION TO THAT IS AFTER HOURS NOISE COMPLAINTS, WHICH ARE DONE THROUGH POLICE DEPARTMENT. WHEN TALKING ABOUT REGULATION IN MCKINNEY, AS WE CURRENTLY HAVE NO DEFINED USE, WE DON'T HAVE[00:15:09]
REGULATIONS SPECIFIC TO SHORT TERM RENTALS. SO ANYWHERE THAT CAN ACCOMMODATE A RESIDENCE CAN USE THAT RESIDENCE AS A SHORT TERM RENTAL. THAT SAID, OUTSIDE THE CITY AUTHORITY, MANY HOMEOWNERS ASSOCIATIONS DO HAVE RESTRICTIONS THAT PREEMPT THE USE OF HOMES AS SHORT TERM RENTALS. MCKINNEY HOUSING COMMUNITY DEVELOPMENT DOES MAINTAIN OPEN LINES OF COMMUNICATION WITH ALL OF OUR HOAS. AND ANECDOTALLY, HCD DID SAY THAT THE VAST MAJORITY OF COMPLAINTS THEY GET REGARDING SHORT TERM RENTALS NOW I WANT TO TAKE A STEP BACK AND LOOK AT HOW OTHER CITIES ARE APPROACHING SHORT TERM RENTALS. FIRST, WE WANT TO LOOK AT FRISCO FOR THEIR ORDINANCE FOR SHORT TERM RENTALS. THEIR PRIMARY ADMINISTERING DEPARTMENT IS THEIR CODE ENFORCEMENT DEPARTMENT. THEY DO HAVE A SPECIFICALLY DEFINED USE IN THEIR CODE, BUT THEY DON'T RESTRICT LOCATION THROUGH THEIR ZONING CODE. THEY DO REQUIRE REGISTRATION DONE THROUGH A THIRD PARTY VENDOR. THEY HAVE A PERMIT THAT THEY MADE SPECIFICALLY FOR SHORT TERM RENTALS. THAT NEEDS TO BE APPLIED FOR, AND THAT'S DONE THROUGH THE CITY'S ONLINE PORTAL. THEY DON'T REQUIRE ANY SORT OF INSPECTION, THOUGH THEY DO REQUIRE THAT EACH SHORT TERM RENTAL HAVE A 24 HOUR AVAILABLE CONTACT. MOVING ON TO PLANO.LIKEWISE, THEY ADMINISTER IT THROUGH THEIR CODE ENFORCEMENT DEPARTMENT. THEY DO HAVE A DEFINED USE IN THEIR CODE, BUT UNLIKE FRISCO, THEY DO PLANO. THEY ARE RESTRICTED TO NONRESIDENTIAL DISTRICTS, WITH THE EXCEPTION OF THEIR OFFICE DISTRICT. YOU CAN HAVE SHORT TERM RENTALS IN PLANO IN THEIR RESIDENTIAL DISTRICTS, BUT ONLY IF THEY'RE IN A HERITAGE DISTRICT, WHICH IS LIKE SIMILAR TO OUR HISTORIC DISTRICT. AND ANOTHER CAVEAT WITH THOSE IS THEY REQUIRE LIVE IN MANAGEMENT. SO MORE LIKE A TRADITIONAL BED AND BREAKFAST RATHER THAN THE SHORT TERM RENTALS WE'VE GENERALLY BEEN DISCUSSING, LIKE FRISCO. THEY REQUIRE REGISTRATION THROUGH A THIRD PARTY VENDOR. BUT PLANO DOESN'T HAVE LIKE A SPECIFIC SHORT TERM RENTAL PERMIT LIKE FRISCO DOES. THEY REQUIRE A SELF-INSPECTION PRIOR TO APPROVAL, AND LIKE FRISCO, THEY ARE. EXCUSE ME? THEY REQUIRE THAT 24 HOUR CONTACT BE AVAILABLE. FINALLY, DALLAS. DALLAS USE IN THEIR CODE. AND LIKE PLATO, THEY RESTRICT LOCATION BASED ON ZONING. THEY RESTRICT IT TO THEIR OFFICE, MULTIFAMILY AND CENTRAL AREA DISTRICTS. THE CENTRAL AREA BEING ESSENTIALLY THEIR DOWNTOWN. THEY REQUIRE REGISTRATION, BUT IT'S DIRECTLY THROUGH THEIR CODE COMPLIANCE DEPARTMENT RATHER THAN A THIRD PARTY VENDOR. THEY HAVE A PERMIT SPECIFICALLY FOR SHORT TERM RENTALS, AND THEY REQUIRE NOT JUST A SELF-INSPECTION, BUT A FULL INSPECTION BY CITY STAFF. AND LIKE THE OTHERS, THEY DO REQUIRE THAT 24 HOUR CONTACT.
THE LEGAL ENVIRONMENT IN WHICH THESE OTHER CITIES HAVE COME UP WITH THEIR ORDINANCES IS VERY COMPLEX, AND IT HAS BEEN CHANGING FREQUENTLY. UNFORTUNATELY, MUCH OF WHAT CITIES CAN AND CANNOT DO IN REGARDS TO SHORT TERM RENTALS IS DEVELOPING. IT IS WE KNOW THAT CITIES CANNOT BAN SHORT TERM RENTALS CITYWIDE, AND CITIES CANNOT REQUIRE THEM TO BE OWNER OCCUPIED OR OWNED BY A CITY RESIDENT. AND CITIES ALSO CANNOT RETROACTIVELY ENFORCE NEW RULES ON EXISTING SHORT TERM RENTALS. CITIES CAN REQUIRE THEM TO BE REGISTERED AND LICENSED OR PERMITTED. LOOKING TO RECENT CASES, HIGNELL VERSUS THE CITY OF NEW ORLEANS WAS A FEDERAL CASE THAT FOUND THAT REQUIRING SHORT TERM RENTALS TO BE OWNER OCCUPIED IS UNCONSTITUTIONAL. AN ONGOING CASE STARTED IN DECEMBER 2023 IS DALLAS SHORT TERM RENTAL ALLIANCE VERSUS THE CITY OF DALLAS. WE EXAMINED JUST A BIT AGO SOME OF THE FEATURES OF DALLAS ORDINANCE THAT CANNOT CURRENTLY BE IN ADDITION TO WHAT WE DISCUSSED, THEY LIMITED SHORT TERM RENTALS TO ONE PER DWELLING UNIT, HAD MINIMUM STAY LENGTHS REQUIRED A FULL CERTIFICATE OF OCCUPANCY, SO CURRENTLY THEY ARE UNABLE TO ENFORCE THEIR ORDINANCE AND THE RESULT OF THAT
[00:20:05]
CASE IS NOT YET CLEAR. SO BRING IT AROUND. TO SUMMARIZE, CODE DOES ACTIVELY ENFORCE NUISANCE LAW, THOUGH IT IS JUST NO DIFFERENT FROM HOW THEY ENFORCE IT FOR ANY RESIDENCE. WE DO COLLECT HOTEL OCCUPANCY TAX WHERE ABLE STAFF IS CONTINUING TO MONITOR, MONITOR REGULATORY ENVIRONMENT CHANGES. AND WE'RE GATHERING MORE PRECISE DATA SPECIFIC TO SHORT TERM RENTALS IN MCKINNEY. WITH THAT, I'LL STAND FOR ANY QUESTIONS. THERE'S A THERE'S ALSO A TREND RIGHT NOW I KNOW SEVERAL IN THIS COMMUNIT, PEOPLE THAT ARE DOING SHORT TERM RENTALS OF THEIR POOLS, OF THEIR BACKYARDS. HAVE YOU IDENTIFIED ANY OTHER CITIES? REGULATING THAT? TO ANY EXTENT OR NOT? FROM OUR SISTER CITIES, ESPECIALLY THE ONES THAT WE TOOK A DEEP DIVE ON, WE DIDN'T REALLY FIND ANYTHING SPECIFIC TO THOSE KIND OF RENTALS. AND THERE'S THE OTHER ONES, LIKE THE PET WATCHING, RENTALS AND THE LIKE. IT WAS HARDER TO FIND EXAMPLES OF ORDINANCES REVOLVING AROUND THOSE AND THE CASE LAW AROUND THOSE IS EVEN LESS CLEAR THAN FOR REGULAR SHORT TERM RENTALS. HOW OFTEN ARE NUISANCE CALLS? HOW OFTEN ARE NUISANCE ISSUES CALLED INTO THE CITY? LIKE IF YOU LOOK OVER THE PAST YEAR, DO WE HAVE A FIGURE THAT TELLS US HOW OFTEN IT'S A PROBLEM THAT WE GET A NOISE COMPLAINT BECAUSE OF A SHORT TERM RENTAL SITUATION? I'LL LET CODE SPEAK ON GOOD AFTERNOON, MR. MAYOR AND COUNCIL. I'M CHRIS SMITH, THE CODE COMPLIANCE MANAGER. WE SINCE WE DON'T ACTUALLY TRACK SHORT TERM RENTALS, WE DON'T KNOW EXACTLY HOW MANY NOISE COMPLAINTS ARE RELATED TO THEM. WE DO HAVE A COUPLE THAT WE GET FREQUENT COMPLAINTS ABOUT. SOME OF YOU MAY BE AWARE OF SOME OF THOSE. IN GENERAL. WE GET VERY FEW NOISE COMPLAINTS OVERALL, SO THEN VERY FEW RELATED TO WHAT WE BELIEVE MIGHT BE AN STR, BUT HISTORICALLY WE HAVEN'T TRACKED THOSE PROPERTIES AS AN STR. SO IT'S REALLY HARD TO SAY AT THIS POINT. SO IF WE REQUIRED PERMITTING FOR OUR SHORT TERM RENTALS AND WE GOT REPEAT OFFENDERS, WHAT CAN WE LEGALLY DO? GENERALLY OTHER CITIES ARE COULD REVOKE THAT PERMIT. I'M NOT SURE IT WOULD DEPEND REALLY ON IF MCKINNEY ADOPTED ANY ORDINANCE RELATED TO SHORT TERM RENTALS AND WHAT THE DETAILS WERE. WHEN DISCUSSING THE ABILITY OR THE EXTENT EAGLE TEAM. THE CASES THAT ARE CURRENTLY ONGOING IN DIFFERENT COURTS OF APPEALS. NOT ONLY ARE THEY UNRESOLVED, BUT SOME OF THE ONES THAT ARE HAVE CONFLICTING RESULTS. SO WE REALLY DON'T HAVE A CLEAR PICTURE ON THE EXTENT OF WHAT WE COULD DO. AND YOUR LAST SLIDE, YOU MENTIONED THAT HOTEL OCCUPANCY TAXES ARE COLLECTED WHERE ABLE. COULD YOU EXPLAIN THAT TO ME? AND HOW MANY OF THESE ARE ACTUALLY PAYING THOSE TAXES? I THINK THAT'S PART OF THE ISSUE. WE DON'T KNOW FOR SURE WHAT THE DIFFERENCE IS BETWEEN WHAT WE'RE ACTUALLY COLLECTING AND WHAT WE COULD BE COLLECTING. THAT'S PART OF THE REASON WHY FINANCE IS COLLECTING MORE DATA AND HAVE A REPRESENTATIVE FROM FINANCE HERE. IF YOU WANT TO TALK JUST A LITTLE MORE ABOUT I.GOOD AFTERNOON. CHANCE. MILLER COUNTY MANAGER. SO KIND OF YOU SAW THE DATA? I DON'T KNOW IF WE CAN GO BACK A FEW SLIDES. I CAN AT LEAST GIVE YOU A LITTLE BIT MORE INFORMATION ON THIS OR LOOK AT THE NUMBERS. SO THAT LITTLE ORANGE BAR THAT SHOWS THAT WE COLLECTED 360,000 SO FAR IN THIS FISCAL YEAR, ABOUT 95% OF THAT IS AIRBNB, WHO WE HAVE A CONTRACT WITH THAT LEGALLY EVERY MONTH HAS TO REMIT TO US THE LUMP SUM OF THEY THEY'LL COLLECT IT FROM THE HOMEOWNERS AND THEN THEY'LL REMIT IT TO US. WE DO NOT HAVE THAT AGREEMENT WITH ANY OTHER COMPANY THAT DOES SHORT TERM RENTALS OR ANYTHING LIKE THAT, WHICH IS WHAT WE'RE PURSUING. AND WE'LL HAVE SOME RECOMMENDATIONS HERE SOON ABOUT THAT. IF THEY DON'T DO IT THAT WAY, WE GET VERY LITTLE PEOPLE THAT ARE SELF-REPORT, YOU KNOW, SENDING US IF THERE'S ANYTHING ELSE I CAN, I'LL HAPPILY ANSWER THEM IN MORE DETAIL. BUT OUR BIGGEST LIKE I SAID, 360,000, ABOUT 355,000 OF THAT IS FROM ACTUALLY AIRBNB. SO I'LL BE HAPPY TO ANSWER ANY OTHER QUESTIONS THOUGH THAT YOU
[00:25:03]
KNOW OF. THAT'S ABOUT $1,000 A UNIT. OKAY. I'M SORRY I DIDN'T HEAR YOU. THE CURRENT INVENTORY YOU'VE IDENTIFIED OF 355 UNITS. SO IT'S ROUGHLY A THOUSAND DOLLARS A I WOULD SAY. SO THAT'S IT. YEAH, NO, I UNDERSTAND. JUST ANECDOTALLY, YES. THANK YOU. YEP. NO PROBLEM. SO ARE YOU ASKING US FOR A DIRECTION AT THIS POINT IN TIME? THIS IS REALLY JUST MEANT TO BE AN UPDATE WHERE WE'LL COME BACK LATER WHEN WE HAVE ALL OF THAT DATA. AND AT THAT POINT WE'LL WANT DIRECTION ON WHERE TO GO. BUT WE HAD A COUPLE COUNCIL MEMBERS REQUESTED THAT WE BRING THIS ITEM. IT'S BEEN SOME YEARS SINCE WE ACTUALLY LAST VISITED THE STR DISCUSSION. MIGHT GO MIGHT GO BACK TO 2017 COUNCIL. NOBODY ON THIS DAIS I DON'T THINK WAS PRESENT WHEN THE LAST CONVERSATION WE HAD. WE'VE WE'VE GROWN OBVIOUSLY AND WE WANTED TO BASICALLY EXPLAIN TO THE COUNCIL WHAT'S OUR POLICY STANCE TODAY, WHAT'S OUR APPROACH HAS BEEN RELATIVELY LAISSEZ FAIRE, RELATIVELY ARMS LENGTH. AND THE QUESTION FOR THE COUNCIL IS BASED ON THE INFORMATION YOU'VE BEEN GIVEN, DO YOU IS THERE ANY INTEREST IN CHANGING ANYTHING BE GIVEN WITHIN THE CONSTRAINTS THAT WE HAVE WITH STATE LAW? WE'D WANT TO KNOW THAT. SO WE COULD BRING THAT BACK. IF YOU CHOOSE NOT TO MAKE THAT DECISION TODAY, THAT'S FINE. WE'LL COME BACK WITH SOME ADDITIONAL INFORMATION AS WE GET IT, AND YOU CAN MAKE THAT DECISION LATER. BUT THE MAIN THING IS THAT THIS COUNCIL'S BEEN APPRIZED OF WHAT'S OUR CURRENT POSITION WITH RESPECT TO STRS. I THINK WE SHOULD PROBABLY TO MAKE ANY POLICY THAT'S GOING TO BE OVERTURNED WITH A COURT CASE THAT'S PENDING RIGHT NOW. YEAH, I WOULD I WOULD THINK THAT TO BE TRUE ON REGULATION, BUT ON ON COLLECTING. AND WHAT WE CAN DO TO BETTER CAPTURE. AND I STARTED TO GO DOWN THE ROAD ASKING A MINUTE AGO ABOUT, YOU KNOW, AGAIN, ANECDOTALLY, $1,000 A UNIT. AND MY SECOND FOLLOW UP QUESTION WAS GOING TO BE, DO WE HAVE AN UNDERSTANDING OR I'M SURE THERE IS A, A THERE'S DATA OUT THERE THAT WOULD IDENTIFY IN THE PRICE MARKET THAT WE ARE FOR SHORT TERM RENTALS. WHAT AN ANNUALIZED ESTIMATED HOT TAX WOULD BE FOR A UNIT. I'M TRYING TO GAUGE WHAT WE WHAT THE QUESTION WAS ASKED BEFORE. WE DON'T KNOW WHAT THE DELTA IS BETWEEN WHAT WE'RE COLLECTING AND WHAT WE COULD BE COLLECTING. SO WE KNOW THERE'S 355 UNITS RIGHT NOW. WE KNOW AGAIN, AVERAGE WISE, WE'RE COLLECTING 1000. WOULD WOULD THE EXPECTATION BE 2000, 5000, AWARE OF ANY BALLPARK ESTIMATES. CHANCE. DO YOU? I MEAN, WE WOULD WE WOULD BE ABLE TO IDENTIFY. THERE'S A NATIONAL AVERAGE ON HOW MUCH SHORT TERM RENTALS ARE RENTED. WE CAN EVEN YOU CAN BREAK THAT DOWN BY REGION. THEN WE ALSO CAN IDENTIFY WHAT'S THE AVERAGE PRICE HERE. SO THAT WOULD THEN GIVE US A FAIRLY WRITE, A FAIRLY GOOD GUESS AS TO WHAT HOT TAX COULD BE. I KNOW WE HAVEN'T DONE IT YET, BUT WE COULD DO THAT. I HAVEN'T FROM WHAT I'VE HEARD FROM, WE WERE OBVIOUSLY CONTACTED OR CONTRACTING WITH A COMPANY THAT IS GOING TO BE SCRAPING THE DATA OF ALL THE SHORT TERM RENTAL RENTAL COMPANIES, AND IT'S ABLE TO SEE WHICH DAYS ARE BOOKED AND GIVING US A GOOD ESTIMATE OF WHAT WE WHAT WE COULD BE COLLECTING IN THE CITY. AND WE'LL COMPARE THAT TO WHAT WE ACTUALLY ARE AND SEE WHAT WE'RE MISSING AND WHERE THAT GAP IS. NOW, HOW WE COMPARE TO OTHER, YOU KNOW, MAYBE OTHER CITIES THAT ARE IN A SIMILAR SITUATION AS US. I HAVEN'T DONE THAT DATA. FROM WHAT I HEAR, IT VARIES A LOT BY, YOU KNOW, JUST A MILLION THINGS THAT FIGURE OUT WHAT IS POSSIBLE, WHAT WE SHOULD BE COLLECTING COMPARED TO WHAT WE'RE ACTUALLY COLLECTING. AND WE'RE HOPING TO HAVE THAT DATA IN THE NEXT, YOU KNOW, THREE MONTHS OR SO, AND THEN WE'LL HAVE A BETTER IDEA OF WHAT WE CAN DO MOVING FORWARD TO CLOSE THAT GAP. AND ON THE ON THE COURT CASES THAT ARE PENDING THAT IDENTIFY WHAT A CITY CAN AND CAN'T REGULATE. I DON'T REMEMBER IF ONE OF THOSE THINGS WAS OUR ABILITY TO REQUIRE REGISTRATION, WHICH. THAT IS PERMITTED. THAT'S THE SAFE HARBOR, MR. MAYOR. AND COUNCIL. THE REGISTRATION, WHICH WOULD ALLOW THE DATA TO BE GATHERED MUCH EASIER. YEAH. SO CERTAINLY I WE COULD MAKE. AND I'M NOT ADVOCATING ONE WAY OR THE I AGREE WITH THAT BECAUSE THAT WOULD ALSO HELP US. IF THEY REGISTER AND THEY'RE NOT PAYING TAXES, THEN WE CAN PRETTY MUCH ASSUME THEY'RE NOT ON AIRBNB, RIGHT? THE OTHER THING THAT I WOULD LIKE TO SEE IS THE 24 HOUR CONTACT BE MANDATED TO. I THINK THAT WOULD GIVE NUISANCES BECAUSE CHANCES OF THEM GETTING WOKE UP AT TWO IN THE MORNING ARE ABOUT 100%. IF THERE'S NOISES. SO THEY MAY BE. SO TO ME, I'D HAVE AN APPETITE FOR AT LEAST THOSE TWO THINGS. IF, MARK, YOU DON'T THINK WE'RE GOING IN LEGAL JEOPARDY WITH[00:30:01]
THOSE TWO THINGS, I THINK WAITING HAS COUNCIL MEMBER JONES SAID. ON SOME OF THE OTHER ISSUES REGARDING REGULATION IS THE SMART COURSE, BUT THE REGISTRATION WOULD BE A WAY TO BEGIN GATHERING THE DATA. BUT A REGISTRATION, WE COULD REQUIRE A NUMBER, RIGHT? I MEAN, JUST TO CONTACT NUMBER. CORRECT. CAN. THERE WAS ONE SLIDE WHERE IT WAS YOU CAN'T PUT RULES ON EXISTING.CORRECT. SO IF THEY'RE OPERATING THAT CAN YOU MAKE THEM. CAN YOU REQUIRE THEM TO REGISTER IF THEY'RE OPERATING AS AN STR. YE. BUT YOU CAN'T. YOU KNOW SOME OF THOSE CITIES ARE PUTTING RESTRICTIONS ON WHERE THEY CAN BE LOCATED. CAN BE. AND THOSE SORT OF THING. BUT YOU CAN DO THE WE'RE GOING TO REQUIRE YOU TO REGISTER. YES. AND FROM A DIFFERENT DESIGNATION. THE THRESHOLD IS NOT THAT WE NECESSARILY WANT THE USE OUT OF CERTAIN AREAS. WE'RE MORE LOOKING FOR A BETTER CAPTURING OF HOT PACKS, A BETTER UNDERSTANDING OF COMPLIANCE ISSUES OR NUISANCE ISSUES. I THINK THE LAND USE ISSUES ARE UP FOR GRABS IN THE COURTS RIGHT NOW AS TO WHAT YOU CAN DO AND WHEN AND HOW MANY PEOPLE AND ALL THOSE THINGS. BUT THE HOT TAX ISSUE, I THINK, IS MORE OF A SAFE HARBOR BECAUSE THERE'S BY REQUIRING THE REGISTRATION, WE'RE NOT PLACING ANY BURDEN ON THEM NECESSARILY. WE'RE JUST WANTING YOU TO PAY THE TAXES THAT ARE, THAT YOU'RE RESPONSIBLE FOR BECAUSE YOU'RE A TAXPAYER IN MCKINNEY AND ENSURING THAT THAT YOU'RE YOU'RE COMPLYING WITH OUR CODE, CORRECT. OUR CODE ISSUES. WE DO HAVE A DESIGNATION FOR LIKE A BED AND BREAKFAST, RIGHT? IN OUR CODE. I DON'T THEM USED, AND IT DOES REQUIRE THAT LIVE IN MANAGEMENT. SO IT DOESN'T REALLY CAPTURE. WHAT WE'RE REALLY TALKING ABOUT TODAY WITH THESE SHORT TERM RENTALS. RIGHT. BUT WHAT WOULD BE THE WHAT'S THE THRESHOLD THAT ONE WOULD IF YOU CAN DO A SHORT TERM RENTAL WITHOUT DOING THE BED AND BREAKFAST. SUP, I ASSUME IT'S AN SUP. WHY WOULD YOU DO THE BED AND BREAKFAST? SUP? ONE REASON I CAN THINK OF IS THAT THE OWNER DOESN'T ACTUALLY LIVE HERE. I THINK THAT'S A PRETTY FREQUENT OCCURRENCE. SO THEY COULDN'T EVEN IF THEY DID WANT TO. BUT I THINK JENNIFER HAS TELL ME FOOD PREPARATION WOULD BE ONE OF THEM. YEAH, I THINK THE BIG ANSWER TO YOUR QUESTION IS THERE REALLY IS NOT MUCH OF AN INCENTIVE FOR SOMEBODY TO DO THE BED AND BREAKFAST ANYMORE, OR BED AND BREAKFAST ANYMORE, UNLESS THEY ARE WANTING TO TRULY OBVIOUSLY NOT PART OF AN AIRBNB.
SO THOSE ARE THE MAJOR THRESHOLDS. BUT WHAT WE'VE SEEN IN THE LAST EIGHT YEARS IS, I THINK NEXT TO NONE COMING IN FOR THE BED AND BREAKFAST BECAUSE PEOPLE ARE MOVING TO THAT NEWER MODEL. YEAH, I THINK WE HAVE A FEW. AND THE ONLY REASONS I KNOW WE HAVE THEM IS BECAUSE I HEAR THE COMPLAINTS ON THE NUISANCE THAT'S ASSOCIATED WITH THEM FOR THE FOR THE BED AND BREAKFAST.
BED AND BREAKFAST, BECAUSE THEY KNOW THEY'RE BED AND BREAKFAST. THEY KNOW THEIR GUESTS AND PEOPLE GET IRRITATED WITH THEM. AND I'LL GET AN EMAIL THAT'S SAYING, HEY, BED AND BREAKFAST DOWN THE STREET WAS TOO LOUD. YEAH, YEAH. BUT THEY'RE NEVER GOING TO DO THAT WITH AN STR BECAUSE, YEAH, WE AGREE. AND THAT'S WHAT REALLY WHAT WE'RE SEEING NOW IS MORE OF THE AIRBNBS. CAMERON CHASE, THANK YOU FOR THE INFORMATION. I WOULD LIKE TO ASK THAT YOU COORDINATE WITH THIS AN ANALYSIS FROM THE DEFINITION OF HOTEL, WHETHER OR NOT THAT EXISTS IN OUR CODE IN RELATION TO THE HOTEL OCCUPANCY TAX, EX POST FACTO LEGISLATION, GOVERNMENT TAKING A PRIOR RIGHTS HAVE A WHOLE BORING LIST. I COULD SHARE WITH YOU TODAY, BUT I'D LIKE TO HEAR IT ALL JOINTLY WHEN THESE GUYS COME BACK WITH THEIR INFORMATION. YEAH, ABSOLUTELY. WE'LL WORK WITH CHAIRMAN. THANK YOU. THANKS FOR THE GOOD WORK. THANK YOU SIR.
ANY OTHER QUESTIONS. SO I THINK YOU HAVE DIRECTION WITH REGARD TO REGISTRATION THAT TYPE OF THING. AND WE'LL WAIT ON THE OTHER. UNDERSTOOD. WE WILL GET ON IT. THANK YOU. THANKS, CAMERON. THANK YOU. ANY COUNCIL LIAISON UPDATES MOVE INTO EXECUTIVE SESSION.
[EXECUTIVE SESSION]
ACCORDING TO TEXAS GOVERNMENT CODE SECTION 55 1071, CONSULTATIONS WITH AN ATTORNEY ON ANY WORK SESSION, SPECIAL SESSION, OR REGULAR SESSION AGENDA ITEM REQUIRE CONFIDENTIAL ATTORNEY CLIENT ADVICE NECESSITATED BY THE DELIBERATION OR DISCUSSION OF SAID ITEM.[00:35:01]
SECTION 551071 PENDING OR CONTEMPLATED LITIGATION. 310 EAST UNIVERSITY DRIVE AND 1020 NORTH MCDONALD STREET. LOT ONE, R BLOCK A OF THE HYZON MOTORS USA EDITION AND BEING 11.034 ACRES OUT OF THE WILLIAMS DAVIS SURVEY. ABSTRACT NUMBER 248. CITY OF MCKINNEY, COLLIN COUNTY, TEXAS. SLC MCKINNEY PARTNERS LP VERSUS CITY OF MCKINNEY, TEXAS. DEFENDANT. CIVIL CITATION NUMBER 493019862024. IN THE 43RD DISTRICT COURT OF COLLIN COUNTY, TEXAS. SECTION 551072 DELIBERATIONS ABOUT REAL PROPERTY DOWNTOWN. CITY OWNED PROPERTY REDEVELOPMENT WILL BE ACTION AFTER POTENTIAL NO. OH, HERE HE IS. THANKS. OKAY. ARE WE RECORDING? YES, SIR. THANK YOU.[ACTION ON EXECUTIVE SESSION]
SIR. I THINK WE HAVE ACTION ON EXECUTIVE SESSION. MR. MAYOR, I'D LIKE TO MAKE A MOTION THAT WE APPROVE THE SETTLEMENT AGREEMENT IN REGARDS TO 310 EAST UNIVERSITY DRIVE, AS DISCUSSED IN EXECUTIVE SESSION. SECOND, ALL IN FAVOR? I OPPOSED I DE. COME FORWARD. PLEASE. WAS THAT? I THINK I THINK NAY NAY NAY. MR. MAYOR, I'M GOING TO STRADDLE THE POLITICAL FENCE THERE TO MAKE A MOTION. WE ADJOURN. SECOND. ALL IN FAVOR? AYE, AYE. ADJOURNED. WE'LL TAKE ABOUT FIV* This transcript was compiled from uncorrected Closed Captioning.