A few years ago, Pacific Grove city officials set out into uncharted territory and attempted to do something neighboring cities haven't been so willing to tackle. They decided to legalize and regulate short-term rentals, many of which advertise on platforms like VRBO and Airbnb.
But the policy—and subsequent changes to it—have stirred emotions on both sides of the issue. A group called Pacific Grove Neighbors United is gathering signatures to put an initiative on the Nov. 6 ballot that would restrict short-term rentals, phasing them out of residentially zoned neighborhoods over the course of 18 months.
Partly to appease residents' concerns over the proliferation of such rentals, in February City Council voted to amend its earlier ordinance, aiming to restrict the density of short-term rentals.
The city's new rule calls for a lottery for existing license holders, and not all could be able to keep their legal rentals—and the income such units generate.
In response, a group of short-term rental owners and operators are suing the city of Pacific Grove. The group, calling itself STRONGpg (Short-term Rental Owners Neighborhood Group), filed a lawsuit April 5 in Monterey County Superior Court.
They're asking a judge to issue a restraining order or injunction to stop P.G.'s lottery plan, calling it arbitrary and discriminatory.
In effect, they claim they invested in their properties based on existing law, and the changes unfairly undermine their rights.
"In reasonable and good-faith reliance upon [the city's] legislation, policies, practices and representations, the petitioners made long-term retirement planning, real estate purchase and other investment decisions," the lawsuit states.
The plaintiffs—Joy Colangelo, Kevin Delaney, William Harder, Alka Joshi, Kathryn Kranen and Spencer Tall—own and rent property in Pacific Grove.
They also claim that reducing the number of rentals violates state and local law that guarantees access to the coast.
A case management conference is scheduled for Aug. 7.
Pacific Grove City Attorney David Laredo says the city will defend itself in court.
"I believe that the city has carefully crafted its regulations in a manner to protect the interests of property owners, both who choose to rent their properties for short-term purposes, and those who choose not to," Laredo says.
(4) comments
Local motels and hotels are very expensive and many of them are downright old, not well maintained and are uncomfortable. I've always said if a hotelier in an out of way place like Needles, ran their property the way some of the PG motels are run, they'd be out of business within six months. PG hotels (especially the older, ratty ones) take advantage of visitors by charging rates that are completely out of line with what is being offered. No wonder visitors look to alternatives like STR's.
Why not allow STR's if the they're only owner-occupied? This would seem to solve many of the noise and bad actor problems that generate many of the complaints against STR's.
People can't do just anything with their properties. IE: How many would stand for someone opening a restaurant in their home in a residential neighborhood? Or what if someone decided to raise egg-laying hens in a residential neighborhood - the noise and the stench would be unbearable. So, no I don't believe people have the right to do "anything" with their property they want. Neighbors and fellow homeowners have some rights as well. Balancing those rights and needs is where the city and the residents must come to an agreeable solution.
We have owned a house in PG for 4 years. In that time we have let friends stay in our house on weekends when we are not using it, probably 4 times a year. We were happy to structure these visits as rentals and make contributions to the City of PG knowing that PG needs all the financial help it can get. The revisions in the program and negativity expressed by some in the community have led us to stop participating in the program. We expect to continue to welcome friends to use the house when we are away. Pacific Grove is lovely and is a place many people love to visit. But the City of Pacific Grove won't get the small amount of revenue we have been happy to pay. It isn't clear to us how this helps the Pacific Grove community.
People have the rights to use their property the way they see fit. If they do not cut the lawn, paint the house or cause problem to the community, then the city should step in. Just because a few individuals feel that this is hurting their community and stand in front of the PO asking for signatures is also not right. I can see people driving around looking for free parking and filling up spaces that are in front of residents houses.. now are you going to require parking permits next? Where does this stop? Government making rules without people being fairly represented? That was why we fought the British in the 1700's. Putting leans on people houses, fining $2500.00 a day if they don't comply, what kind of government is this? I believe some people would have lost their house when this recession hit a few years ago, but renting saved them. Not everyone is rich in PG and there are people out there trying just to keep their head above water. So stop this madness and be fair, discuss the problem openly and with both sides coming to an agreement.
Every time I leave my home in P.G. and see the Anti-short term vacation rental signs in peoples yards I get nauseated. Could P.G. represent itself as a more unfriendly community? I don’t see how. Pall is right, homeowners should have the right to use and rent out their homes as they please. They are paying the mortgage after all! Short term rentals fill a much-needed void by enabling travelers, many of which are families, the ability to take a vacation which, without STR’s probably would not be affordable for them. STR’s offer a home away from home where guests can enjoy meals together rather than being forced to eat out every meal as is required when staying in a hotel/motel which is a huge factor when budgeting for a trip. Another fact is that there simply are not enough hotel and motels available during peak events such as Concours and Pro-Am. P.G. businesses are benefitting from the patronage of visitors as well as businesses in the surrounding towns. Stop the whining or change the slogan to “America’s most unfriendly town”. The behavior and unwelcoming attitude is beyond embarrassing and I for one, don’t want to be clumped together with the P.G. Haters!!
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