YOUR BUSINESS AUTHORITY
Springfield, MO
An often-discussed topic by Springfield City Council reared its head again at the body’s Aug. 5 meeting, with one member suggesting tweaks to the city’s short-term rental ordinance are needed.
Up for debate were three resolutions calling on council to grant permission for Type 2 short-term rental permits, which allow residences to be rented out on sites like Airbnb with the owner not living on the property. The properties at 603 E. McGee St., 1131 W. Whiteside St. and 2649 E. Loren St. ultimately were granted by votes of 8-1, 6-3 and 7-2, respectively. Councilmember Craig Hosmer, who has been vocal about his opposition to short-term rentals, voted against all three, with Councilmember Brandon Jenson joining him on the Whiteside and Loren votes and Mayor Ken McClure also opposing the Whiteside permit.
City staff said that all three of the properties were identified by city software as operating without the licensure required in the ordinance governing short-term rentals that went into effect in early 2019; and that two required appeals because of signature requirements and one needed a variance due to the block size. The properties additionally were subject to the 5% occupancy tax on hotels that voters last year added to short-term rentals. Staff said in applying for the licenses, the property owners had paid taxes owed.
Hosmer pointed to problems that exist with the current system, notably that the city relies on the property owners to submit their rental records.
“All they have to do is just tell us how much they think? There’s no penalty, there’s no interest, there’s no any consequences for operating illegally in the city of Springfield?” Hosmer asked city staff.
Springfield Finance Director David Holtmann said the city charges a 5% penalty for back taxes.
“That is the only provision there,” he said.
In response to further questioning by Hosmer, Holtmann said the city conducts two to three annual audits of hotels to confirm room nights, and that the municipality could look into doing the same with short-term rentals.
Hosmer suggested the city’s short-term rental rules could be changed to include a provision requiring property owners to submit official records through sites like Airbnb and Vrbo.
“If Kansas City’s looking at that, other jurisdictions are doing it, we shouldn’t be having this argument day after day after day after day because we’re going to have more short-term rentals,” Hosmer said. “Self-regulation is a lot better than us trying to chase people because we don’t do a very good job of primary enforcement.”
Springfield City Attorney Jordan Paul said council would have an opportunity to review short-term rental regulations at an upcoming committee meeting.
“I think you’ve kind of got a choice in how you wish to pursue the occupancy tax,” Paul said.
Appearing as speakers at the council meeting were mother and son Ana Ortiz and Esteban Goyes, who spoke as the owners of the Whiteside and Loren properties, respectively.
Both spoke of the connections they have to the community, and Ortiz said property ownership is part of her American dream after emigrating from Ecuador.
“This is a family investment. We are dreamers,” she said, noting the Whiteside property is often rented to traveling health care workers.
Following questioning of Ortiz, Councilmember Abe McGull said the question before council is a property rights issue.
“The city has decided to pass this ordinance that gives every citizen an opportunity to maximize their potential with their own property. Springfield should be a place where citizens are able to find and follow their dreams,” McGull said. “This is their property. If there was a problem with the short-term rental, of course you address that issue, but not allowing someone to monetize their success, not allowing someone to maximize their potential, I don’t know what that sounds like in this country.”
Hosmer said he believes it’s a community and neighborhood rights issue, and council is in charge of determining whether a property operating as a short-term rental benefits the community and neighborhood.
Jenson said short-term rentals also are not the only way to monetize real estate.
“A denial of this permit would not render the property completely void of any financial opportunity or gain for the property owner,” he said. “It would simply be stating that in a very stable neighborhood ... that rather than having a destabilizing business located within their community, that it returns this property to the use of housing for the people who live here.”
Goyes, who said he lives in Olathe, Kansas, noted he has been trying to register the property since learning of the ordinance.
“In the past, there wasn’t a clear expectation ... of what to do,” he said.
Sales tax
Council members unanimously passed a bill forwarding a decision on a sales tax to voters in the Nov. 5 general election.
Council at its July 22 meeting held a public hearing on the plan to replace a three-quarter-cent city sales tax that has been used since its original passage in 2009 to support the city’s Police and Fire Pension Fund. Voters will be asked to pass a new three-quarter-cent tax, with one-quarter of a cent to continue to go toward the pension fund – now 91% funded – along with other safety initiatives, including police officer and firefighter pay, as well as projects that are consistent with the city’s Forward SGF comprehensive plan such as capital improvements, community and neighborhood initiatives, and park projects.
Mayor Pro Tem Matthew Simpson spoke in favor of the bill at council’s Aug. 5 meeting.
“I think that this bill is probably the most important thing that we will do as a council,” he said. “The current tax that we have is a success story.”
Park sponsorship
Toward the end of the latest council meeting, members learned the Springfield-Greene County Park Board has reached a new naming-level sponsorship agreement for the Jordan Valley Ice Park.
Ron Schneider, who started as director of parks and recreation last month, told council that internet service provider Brightspeed LLC has penned a 10-year contract for the naming rights at $150,000 annually, with an option to renew after the term completes.
“We’re excited for this opportunity that will provide some needed financial resources for the ice park and overall park operations,” Schneider told council members.
Council is scheduled to vote Aug. 19 on the bill that would amend the Park Board’s 2024-25 budget by increasing revenues in the amount of $175,000. Schneider said Brightspeed additionally would reimburse expenses to implement co-branded signs and logo placements at Jordan Valley Ice Park, with 50% to be paid in 2024 and the remainder in the second year of the contract.
The Jordan Valley Ice Park has not had a naming-level sponsor since 2019, when Mediacom Communications Corp. chose not to extend its contract with the Park Board.
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