Supporting Documents - Short Term Rental - City of Wilmington

ITEM PH4
OFFICE OF THE CITY MANAGER

(910) 341-7810 | FAX (910)341-5839
TDD (910)341-7873
6/19/2018
City Council
City Hall
Wilmington, North Carolina 28401
Dear Mayor and Councilmembers:
Attached for your consideration is an ordinance amending the Land Development Code (LDC) to
provide regulations for homestay lodging in residential districts and homestay and whole-house lodging
in some commercial and mixed-use districts. This ordinance also deletes “guest lodging” as a
permitted use. Consistent with the direction from City Council at the April 30, 2018 work session, the
proposed amendment addresses only homestays in residential districts and whole-house and homestay
lodging in commercial and mixed-use districts and it does not address whole-house lodging in
residential districts. Staff anticipates bringing forward proposed regulations for whole-house lodging
in residential districts at a future City Council meeting. A case summary follows the ordinance.
The proposed amendment would allow homestay lodging in all of the residential, multifamily, and
historic districts as a use permitted with prescribed conditions. Whole-house lodging and homestays
would be permitted in most commercial and mixed-use districts as uses permitted with prescribed
conditions. The current code does not specifically address such uses. If the proposed amendment is
approved, specific regulations would be created for these uses. If the proposed amendment is not
approved, these uses would continue to fall within the scope of the definitions of “housing unit” and
“family.” As this proposal does not address whole-house lodging within residential districts,
whole-house lodging within those districts would not be permitted.
There were four work sessions with the planning commission on this issue between June and October
2017. The planning commission held a public hearing on the proposed changes on December 6, 2017
and voted to continue the item to the January 2018 meeting. Despite reaching a general consensus on
the matter of homestays in residential districts, the planning commission was unable to reach consensus
on a recommendation. A joint work session with the planning commission and City Council was held
on March 16, 2018 to review the draft changes and the recommendations of the planning
commissioners.
Staff finds that the requested amendment would be consistent with the City of Wilmington
Comprehensive Plan, and therefore, recommends approval of the amendment.
Passage of the attached Ordinance is recommended.
Respectfully submitted,
Sterling B. Cheatham,
City Manager
City Council
Ordinance City of Wilmington
North Carolina
Introduced By: Sterling B. Cheatham, City Manager Date: 6/19/2018
Ordinance Amending The Land Development Code Chapter 18, to Allow Homestay
Lodging in Residential, Historic, and Multi-family Districts as a Use Permitted with
Prescribed Conditions, to Add Whole-house Lodging and Homestay Lodging in Some
Commercial and Mixed-use Districts as Uses Permitted with Prescribed Conditions, to
Add and Amend Definitions, to Delete Guest Lodging as a
Permitted Use (LDC-1-717A)
LEGISLATIVE INTENT/PURPOSE:
WHEREAS, NCGS Section 160A-385 authorizes local governments to amend ordinances

regulating land use within their jurisdiction; and
WHEREAS, the amendment set out below is made in accordance with NCGS Section 160A-364
and Article 3, Section 18-117 of the Land Development Code; and
WHEREAS, the amendment set out below is intended to promote the public health, safety, and
welfare by amending the Land Development Code to include regulations for short-term lodging.
THEREFORE, BE IT ORDAINED:
SECTION 1: Chapter 18, Article 5 of the Land Development Code, Section 18-177. R-20.
Residential District (c) is hereby amended to add:
(11) Homestay lodging
Residential District (c)(8) is hereby amended to read as follows:
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Residential District (c) is hereby amended add:
SECTION 7: Chapter 18, Article 5 of the Land Development Code, Section 18-184.
Multifamily Residential Districts (c) is hereby amended to add:
SECTION 8: Chapter 18, Article 5 of the Land Development Code, Section 18-185. MX,
Mixed Use District (c)(1)(e) is hereby amended to add:
viii. Homestay lodging by prescribed conditions

ix. Whole-house lodging by prescribed conditions
SECTION 9: Chapter 18, Article 5 of the Land Development Code, Section 18-187. HD,
Historic District (c) is hereby amended to add:
SECTION 10: Chapter 18, Article 5 of the Land Development Code, Section 18-187. HD,
Historic District (d)(7) is hereby amended as to read as follows:
(7) reserved
SECTION 11: Chapter 18, Article 5 of the Land Development Code, Section 18-188. HD-MU,
Historic District-Mixed Use (d) is hereby amended add:
SECTION 12: Chapter 18, Article 5 of the Land Development Code, Section 18-188. HD-MU,
Historic District-Mixed Use (e)(9) is hereby amended as to read as follows:
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(9) reserved
SECTION 13: Chapter 18, Article 5 of the Land Development Code, Section 18-189. HD-R,
Historic District-Residential (d) is hereby amended to add:
SECTION 14: Chapter 18, Article 5 of the Land Development Code, Section 18-190. O&I-1,
Office and Institutional District 1 (c) is hereby amended to add:
Homestay lodging
Whole-house lodging
Office and Institutional District 1 (d)(2) is hereby amended to read as follows:
(2) reserved
Office and Institutional District 2 (c) is hereby amended to add:
Homestay lodging
Whole-house lodging
Office and Institutional District 2 (d)(5) is hereby amended to read as follows:
(5) reserved
SECTION 18: Chapter 18, Article 5 of the Land Development Code, Section 18-193. MSMU,
Main Street Mixed-use District (c)(2) is hereby amended to add:
l. Homestay lodging
m. whole-house lodging
SECTION 19: Chapter 18, Article 5 of the Land Development Code, Section 18-193. MSMU,
Main Street Mixed-use District (d)(2) is hereby amended to read as follows:
(2) reserved
SECTION 20: Chapter 18, Article 5 of the Land Development Code, Section 18-194. CB,
Community Business District (c) is hereby amended to add:
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(28) Whole-house lodging
SECTION 21: Chapter 18, Article 5 of the Land Development Code, Section 18-194. CB,
Community Business District (d)(6) is hereby amended to read as follows:
(6) reserved
SECTION 22: Chapter 18, Article 5 of the Land Development Code, Section 18-195. RB,
Regional Business District (c) is hereby amended to add:

SECTION 23: Chapter 18, Article 5 of the Land Development Code, Section 18-195. RB,
Regional Business District (d)(6) is hereby amended to read as follows:
(6) reserved
SECTION 24: Chapter 18, Article 5 of the Land Development Code, Section 18-196. CBD,
Central Business District (c) is hereby amended to add:

SECTION 25: Chapter 18, Article 5 of the Land Development Code, Section 18-200. AI,
Airport Industrial District (f) is hereby amended to add:
Homestay lodging
Whole-house lodging
SECTION 26: Chapter 18, Article 5 of the Land Development Code, Section 18-202. RFMU,
Riverfront Mixed-use District (c)(1)(e) is hereby amended to add:
ix. Homestay lodging, provided the requirements of Sec. 18-329 are met
x. Whole-house lodging, provided the requirements of Sec 18-329 are met
SECTION 27: Chapter 18, Article 5 of the Land Development Code, Section 18-203. RO,
Residential Office District (d)(6) is hereby amended to read as follows:
(6) reserved
SECTION 28: Chapter 18, Article 5 of the Land Development Code, Section 18-204. UMX,
Urban Mixed-use District (b)(2) amended to add:
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j. Homestay lodging
k. Whole-house lodging
SECTION 29: Chapter 18, Article 6 of the Land Development Code, Section 18-267.
Dormitory, private (f) is hereby amended to read as follows:
(f) In the districts where permitted, a proposed private dormitory shall not locate closer than a
one-mile radius from any existing permitted private dormitory, fraternity house, sorority house,
family care home, group home supportive small, group home supportive, medium, group home
supportive, large, and group home residential in a residential district. The distance between the
proposed use and the existing permitted private dormitory, fraternity house, sorority house,
family care home, group home supportive small, group home supportive, medium, group home
supportive, large, and group home supportive residential shall be measured by following a
straight line from the nearest point of the lot line of the proposed use to the nearest point of the
lot line of the lot on which the existing permitted use is located.
SECTION 30: Chapter 18, Article 6 of the Land Development Code, Section 18-277, Guest
Lodging shall be amended to read as follows:
Sec. 18-277. Reserved
SECTION 31: Chapter 18, Article 6 of the Land Development Code, Section 18-289,
Multifamily District Mixed Use (MFMU) within the MF-M, MF-MH, and MF-H Districts
(k)(8) shall be amended to read as follows:
8. reserved
SECTION 32: Chapter 18, Article 6 of the Land Development Code, Section 18-305, Special
uses in the historic districts, with the exception of the Historic District-Mixed Use (HD-MU)
and the Central Business District-Historic District Overlay (CBD-HDO) (d) shall be amended to
read as follows:
(d) reserved
SECTION 33: Chapter 18, Article 6 of the Land Development Code, Sections 18-329 and
18-330 shall be amended to read as follows:
Sec. 18-329. Whole-house Lodging and Homestay Lodging in the O&I.-1, O&I-2, CB, RB,
CBD, AI, RFMU, MX, MSMU, and UMX Districts.
(a) Registration.
1. Property owners shall register each establishment annually with the city of Wilmington.
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2. A registration number shall be assigned to each registered establishment, which shall be
clearly noted along with any advertisement for lodging.
(b) Any use for which there are three (3) final determinations of violations of the City Code
and/or criminal convictions related to the parcel (on, adjacent to, or within the property) by a
property owner, tenant, guest, host, lessee, or individual otherwise related directly to the
property within any rolling three hundred sixty five (365) day period, shall constitute a
violation of the terms of registration and shall terminate registration. For any registration
that is terminated due to code/criminal violations, a property owner shall be ineligible for
registration for a period of three (3) years.
(c) A property owner, as well as any host/operator, shall be responsible for ensuring compliance
with all federal, state, and local laws, including, but not limited to tax code, building code,
fire code, and environmental health regulations for the level of occupancy of the short-term
lodging.
(d) Property owners shall be responsible for keeping in full force and effect during all times the
unit is used as a short-term lodging or homestay commercial general liability insurance with
a total limit of not less than $500,000 each occurrence for bodily injury and property
damage.
(e) Written notice shall be conspicuously posted inside each short-term lodging unit setting
forth the following information:
1. The name and telephone number of the host/operator.
2. The address of the lodging, the maximum number of overnight occupants, and the day(s)
established for garbage collection.
3. The non-emergency phone number of the city of Wilmington Police Department.
4. The annual registration documentation.
5. That parties events, classes, weddings, receptions, and other large gatherings are not
permitted.
(f) The host/operator shall ensure that all refuse is stored in appropriate containers and set out
for collection on the proper collection day(s) and the carts removed from the street or alley
on the scheduled collection day, in accordance with Section 10-14 of the City Code.
(g) Preparation and service of food by host/operators for guests shall be prohibited. No
cooking shall be permitted in individual bedrooms.
(h) Within the CBD, short-term lodging uses shall be prohibited on the ground floor of
street-facing facades, excluding alleys.
Sec. 18-330. Homestay lodging in residential, multifamily, and historic districts.
Homestay uses are permitted in single-family zoning districts, including all of the R districts,
the HD, HD-R, HDMU districts, and in all of the MF districts.
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Homestay lodging uses shall only be allowed in lawfully permitted dwelling units serving as the
principal residence of a host. Only a property owner may register a homestay lodging; however,
the principal resident may act as a host. Homestay lodging uses do not include bed and breakfast
lodging uses.
1) Registration.
(a) A property owner shall register each establishment annually with the city of
Wilmington.
(b) Registration is restricted to a property owner, who shall provide proof of possession of
the registered premises, and to natural persons only. A host may be the property owner
or another principal resident.
(c) A registration number shall be assigned to each registered establishment, which shall
be clearly noted along with any advertisement for lodging.
(d) Active registrations shall not expire, provided that a property owner shall renew
registration on an annual basis. If a property owner fails to renew a registration, the
registration shall be considered terminated by the property owner.
(e) Registration does not vest the premises or property owner with any rights.
Registration terminates upon transfer of the property to another owner.
(f) Any bedroom rentals for periods of twenty-nine (29) days or less not properly
registered as a bed and breakfast shall register as a homestay.
2) The maximum number of guest rooms allowed shall be one less than the total number of
bedrooms in the dwelling unit, not to exceed three (3) guest rooms.
3) In the R-20, R-15, R-10, R-7, R-5, R-3, HD, HD-R, and HDMU districts:
(a) The host shall issue a parking placard to each guest parking on site.
(b) Guest parking shall be restricted to behind the plane of the front façade of the home,
except on an existing improved parking surface existing at the time of the adoption of
this ordinance.
(c) No more than three (3) motor vehicles owned or operated by patrons shall be parked
onsite at any time.
4) The use provisions of this section are not subject to variance by the board of adjustment.
5) If there are three (3) final determinations of violations of the City Code and/or criminal
convictions related to the parcel (on, adjacent to, or within the property) by a property
owner, tenant, guest, host, lessee, or individual otherwise related directly to the property
within any rolling three hundred sixty five (365) day period, shall constitute a violation of
the terms of registration and shall terminate registration. For any registration that is
terminated due to code/criminal violations, the owner(s) of the property shall be ineligible
for registration for a period of three (3) years.
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6) Any property owner registering a homestay lodging, as well as any host, shall be
responsible for ensuring compliance with all federal, state, and local laws, including, but
not limited to tax code, building code, fire code, and environmental health regulations for
the level of occupancy of the homestay.
7) Property owners registering a homestay lodging are responsible for keeping in full force
and effect during all times the dwelling unit is used as a homestay lodging commercial
general liability insurance with a total limit of not less than $500,000 each occurrence for
bodily injury and property damage.
8) Homestay lodging registrants and hosts shall maintain records demonstrating that the
home is a host’s primary residence, the dates of rental for the previous three hundred sixty
five (365) days, and the number of renters. Such records shall be made available, upon
request, to the City Manager.
9) The definition of “family” and the restriction of a minimum thirty (30)-day rental period
in the MF districts shall not apply to properly registered homestay lodging.
10) Written notice shall be conspicuously posted inside each short-term lodging unit setting
forth the following information:
(a) The name and telephone number of the host.

(b) The address of the lodging, the maximum number of overnight occupants, and the
day(s) established for garbage collection.
(c) The non-emergency phone number of the city of Wilmington Police Department.
(d) The annual registration documentation.
(e) That parties, events, classes, weddings, receptions, and other large gatherings are not
permitted.
SECTION 34: Chapter 18, Article 9 of the Land Development Code, Section 18-532, Parking
Schedule shall be amended to strike the entire row containing Guest Lodging from the table.
Definitions, shall be amended to strike the definition of Guest Lodging.
Definitions, shall be amended to add the following, in alphabetical order:
Homestay lodging - The business engaged in the rental of individual bedrooms within a
dwelling unit that serves as the host’s principal residence, that provides lodging for pay, for a
maximum continuous period of twenty-nine (29) days, that does not include serving food, and to
which the definition of family does not apply.
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Homestay Host: a permanent, full-time resident of a property who is present during the
homestay term for the entire time lodgers are staying on the property. The host may be
temporarily absent from the property for purposes related to normal residential activities, such
as shopping, working, attending classes, etc.; however, a host must be at the property overnight
when lodgers are present.
Whole-house lodging - A business engaged in the rental of an entire dwelling unit that provides
lodging for pay, for a maximum continuous period of twenty-nine (29) days and does not
include the include serving of food. Whole-house lodging uses are exempt from the definition of
“family” and specifically excludes events, classes, parties, large gatherings, and other
non-lodging uses.
Definitions, shall be amended to change the definition of Housing Unit to read as follows:
Housing unit (dwelling unit): One (1) or more rooms together, constituting a separate,
independent housekeeping establishment for owner occupancy, or rental or lease, and physically
separated from any other housing unit which may be in the same structure, and containing
independent cooking and sleeping facilities for not more than one (1) family.
Definitions, shall be amended to change the definition of Principal Residence to read as follows:
Principal residence: The domicile where an individual has a true, fixed, permanent home and
principal establishment, and to which place, whenever absent, the individual has the intention of
returning. A principal residence is the one a person: 1) uses as his/her voting address; and 2)
uses as the address on one of the following: his/her federal and state tax returns, military
purposes, passport, vehicle registration, insurance policy, driver’s license, bank account, or any
other bill or item that requires a response; and 3) occupies for at least one hundred eighty-three
(183) days during a calendar year.
SECTION 39: That any short-term lodging establishment existing at the time of the adoption of
this ordinance shall be brought into compliance with this ordinance on or before the effective
date of this ordinance.
SECTION 40: That any person violating the provisions of this ordinance shall be subject to the
penalties set forth in Article III, Section 18-52 of the Land Development Code.
SECTION 41: That all ordinances or parts of ordinances in conflict with this ordinance are
hereby repealed to the extent of such conflict.
SECTION 42: That if any section, subsection, paragraph, sentence, clause, phrase or portion of
this ordinance is for any reason held invalid or unconstitutional by any court of competent
jurisdiction, such portion shall be deemed severable and such holding shall not affect the
validity of the remaining portions hereof.
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SECTION 43: That this ordinance shall be effective October 1, 2018.
Adopted at a ________________ meeting

on ____________________ 2018
Bill Saffo, Mayor
ATTEST: APPROVED AS TO FORM:
Penelope Spicer-Sidbury, City Clerk City Attorney
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LAND DEVELOPMENT CODE
AMENDMENT
Case: LDC-1-717-A
Staff Contact: Christine Hughes; christine.hughes@wilmingtonnc.gov; 910-341-5885
Staff Recommendation: Approval
Planning Commission No recommendation

Recommendation:
City Council Action: Scheduled for public hearing 6/19/18
Request
Code Section(s) Amend City Code Chapter 18 to add “whole-house lodging” and “homestay
lodging” as uses permitted with prescribed conditions, delete “guest
lodging” as a use, to add, revise, or delete several definitions, and to delete
references to “guest lodging”
Request To create standards for homestay lodging and whole-house lodging
Applicant City of Wilmington
** This report has been amended since the March 16 City Council/Planning Commission work
session **
BACKGROUND / ANALYSIS
In late 2015, the City Manager directed planning staff to review the existing code regulations related
to short-term lodging, operating as peer-to-peer rentals via online platforms, and to review
benchmark cities that have recently addressed or are addressing the issue of short-term lodging.
Since that time, City Council has been presented with a detailed review of best practices from
across the country, including an in-person presentation from planners from Asheville, Raleigh, and
Cornelius, North Carolina.
What is included in this draft amendment reflects months of research, discussion among City
Council members, three Planning Commission work sessions, public input, best practices, and the
most recent assessment of legal issues. The proposed amendment addresses two types of short-
term lodging: “homestay” lodging, or the rental of rooms while the principal resident is onsite during
the lodging period, and “whole-house” lodging, whereby there may not be a principal resident on the
property during the lodging period. Homestay lodging and whole-house lodging are presented as
uses permitted by prescribed conditions in several commercial and mixed-use districts. Homestay
lodging is also presented as a use permitted with prescribed conditions in the residential districts.
This proposed amendment does not address whole-house lodging within residential districts.
The proposed amendment, in summary, would:

 Amend existing and provide relevant new definitions
 Require registration for all types of short-term lodging
 Allow homestay lodging in the R, H, MHP, and MF districts
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LDC-1-717 Short-term Lodging
 Allow homestay and whole-house lodging in the O&I-1 and 2, CB, RB, CBD, AI, RFMU, MX,
MSMU, and UMX districts
 Delete guest lodging as a permitted use
The following table is a very brief summary of the proposed code changes.
Commercial and Mixed-use Residential Districts
Districts
STLs Permitted Whole house and homestay Homestay
Districts permitted O&I-1, O&I-2, CB, RB, CBD, R-20 – R-3, HD, HDR,
AI, RFMU, MX, MSMU, UMX HDMU, MHP, MFL-MFH
Registration required Yes Yes; Only property
owner may register
Separation None None
requirement
Insurance, Required Required
inspections and life
safety
Off-street parking No No
required
Maximum number of None 3
bedrooms
Based on research supplied by AirDNA.com, staff believes there are roughly 400 active whole-
house lodging and homestay uses within the city limits. The map following is captured from AirDNA
and represents data current through September 2017.
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Benchmark Cities Research – Updated May 2018
The benchmark research shows that there are no clear best practices or standards for addressing
the issue of peer-to-peer rentals. While many cities are working towards developing regulations,
other cities have adopted standards and are working on amendments to those standards.
Alexandria, VA Not regulated

Annapolis, MD  Regulations adopted in 2011
 Whole-house rentals allowed
 Rental of bedrooms is considered a boarding house and not
permitted
 License required ($100 fee)
 Units rented for up to 6 months/year
 No minimum rental period
 Registration exception for certain specific events
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Asheville  Regulations adopted November 2015; amendments approved

in January 2018
 Homestay permitted – up to 2 guest rooms
 Whole-house rentals prohibited in residential zoning and
downtown (January 2018 amendment); allowed in districts
where lodging is a permitted use
 No grandfathering with exception of 11 historic vacation
cottages and those operating downtown prior to 2018
 Full-time staff position added to handle compliance
Carolina Beach Not regulated
Chapel Hill Not regulated; the definition of “dwelling unit” is used to govern
duration of stay of one week or longer
Charleston, SC  Regulations adopted in 2012; amendments adopted April 2018
(effective July, 2018)
 Rental period between 1 and 29 days
 Two types – residential STR (owner required to live on site in a
homestay-type arrangement) and commercial STR (no
resident, whole-house rental)
 Permit required
 Bed and breakfast use deleted and replaced with “residential
short-term rentals”
 Each residential STR permittee allowed to rent/list only one
unit
 Three categories of residential STRs (category 1 – in the Old
and Historic District, category 2 – within the Old City District but
outside the Old and Historic District, category 3 – off the
peninsula)
 Off-street parking required
 Commercial type only allowed within the single overlay district
and not permitted in any unit designated as workforce housing
unit
Charlotte Not regulated; B&B and boarding houses regulated
Chattanooga. TN  Regulations adopted in 2009; amendments adopted 2017 (the
Tennessee General Assembly is currently considering a ban
on local regulation of short-term lodging)
 Registration required
 Owner-occupied rentals allowed in an overlay district
 Non-owner occupied (including rentals while the owner is away
from home) allowed in overlay district and upon request for
registration, a sign is posted on the property and letters sent to
councilmembers and neighbors within 300 feet and a 30-day
waiting period is required – if opposition is received, the
property owner must appeal to city council for approval
 Allowed in a primary dwelling unit and/or an accessory dwelling
unit
 Rental period of 1 – 29 days
 Natural person must be designated to be responsible for daily
operations, must be customarily present at a location within the
county, and must be responsive to contact at all times
Durham Not regulated; decided not to pursue regulations
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New Bern Not regulated

Raleigh Regulations under consideration since 2014; to date, the city council
has rejected all proposed regulations brought forward for consideration
Task force created to study issue and draft ordinance; City Council
declined to vote on task force recommendation in June 2017.
St. Augustine, FL  Regulations adopted in 2010
 One or two-family dwelling units rented for a period of one
week or more, but less than 3 months
 Permitted in 2 residential zoning districts
 Large gatherings prohibited
 No grandfathering of nonconforming uses
 Enforcement staff dedicated specifically to short-term rentals
 Florida legislature currently considering state-wide preemption
regulations
San Francisco,  Regulations adopted in 2014
CA  Rental of all or a portion of a dwelling unit for 1-30 nights
 Only permanent residents (owners/tenants who spend at least
275 nights/year in the unit) permitted to rent short term
 Within multi-unit buildings, only the unit within which the
registered host resides can be used for short-term rentals
(cannot live in one unit and rent out another)
 Registration as a business and as a certified host required
 Life safety inspection and liability insurance required
 If a unit in a multi-tenant building is used for STR, the entire
property, including all other dwelling units, must be code
compliant and not subject to code enforcement
 Quarterly reports required to be filed with city
 Created office of Short-term Rentals with staff of 6
Santa Fe, NM  Regulations adopted in 2009; amended in 2016
 Cap of 1,000 residential permits citywide
 Rental period of up to 30 days; only one rental period every 7
days
 Requires a business registration and a short-term rental permit
or registration
 Permit required within residentially-zoned area; registration
required within a non-residentially zoned area – both are non-
transferable
 Requires applicant to notify neighbors within 200 feet with
owner/operator contact information, contact information for the
code enforcement staff person for that area
 Requires proof of property ownership, proof of insurance, site
plan showing parking and buildings, and proof of compliance
with accessory dwelling unit regulations (if applicable)
 Zoning and water conservation inspection required
Savannah, GA  Regulations adopted 2014; amendments adopted 2017
 Rental period of up to 30 days
 20% per ward cap applicable to non-owner occupied parcels in
the historic district in the conservation and residential zoning
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districts (no cap for owner-occupied properties) and non-owner

occupied parcels within the Victorian district located in the 1-R,
2-R, and 3-R districts (owner-occupied properties exempt from
cap); waiting list for capped wards
 Limited to 2 adults per bedroom
 Rental agent required (must be natural person able to appear
on the premises within 2 hours)
 Permitted in limited business, mixed-use, historic, and
residential districts (caps only within historic districts)
 All adjacent property owners must be notified before issuance
of a permit
 3 strikes/you’re out for code violations
 Permitted in accessory dwelling units within one district,
provided that the principal dwelling unit is owner occupied
Wrightsville Not regulated
Beach, NC
PROPOSED AMENDMENT
Due to the extensive nature of the proposed amendments, the full text is included as an attachment
to this report.
Definitions Code Proposed Changes (additions underlined, deletions in

Section strikethrough)
Add definition of homestay 18-812 (in Homestay lodging – The business engaged in the rental of
alphabetical individual bedrooms within a dwelling unit that serves as
order) the host’s principal residence, that provides lodging for
pay, for a maximum continuous period of twenty-nine (29)
days, that does not include serving food, and to which the
definition of family does not apply.
Add definition for homestay 18-812 (in Homestay host: a permanent, full-time resident of a
host alphabetical property who is present during the homestay term for the
order) entire time lodgers are staying on the property. The host
may be temporarily absent from the property for purposes
related to normal residential activities, such as shopping,
working, attending classes, etc.; however, the host must
be at the property overnight when lodgers are present.
Amend definition of principal 18-812 (in Principal residence: The residence domicile where an
residence alphabetical individual has a true, fixed, permanent home and principal
order) establishment, and to which place, whenever absent, the
individual has the intention of returning. A principal
residence is the one a person: 1) uses as his/her voting
address; 2) uses as the address on his/her federal and
state tax returns, military purposes, passports, vehicle
registrations, insurance policies, driver’s license and bank
accounts, insurance, or any other bill or item that requires
a response; 3) occupies for at least one hundred eighty-
three (183) days during a calendar year.
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Amend definition of housing 18-812 (in Housing unit (dwelling unit): One (1) or more rooms
unit alphabetical together, constituting a separate, independent
order) housekeeping establishment for owner occupancy, or
rental or lease on a weekly or longer basis, and physically
separated from any other housing unit that may be in the
same structure, and containing independent cooking and
sleeping facilities for not more than one (1) family.
Uses – add regulations for Code Proposed Changes (additions underlined, deletions in
homestay lodging Section strikethrough)
(residential districts)
Add regulations for 18-330 Sec. 18-330. Homestay lodging in residential, multifamily,
homestay lodging in the and historic districts.
residential and historic
districts Homestay uses are permitted in single-family zoning
districts, including all of the R districts, the HD, HD-R,
HDMU districts, and in all of the MF districts. Such uses
shall only be allowed in lawfully permitted dwelling units
serving as the principal residence of the host. Only the
property owner may register a homestay lodging; however,
the principal resident may act as a host. Homestay lodging
uses do not include bed and breakfast lodging uses.
1) Registration.
a. A property owner shall register each

establishment annually with the city of
Wilmington.
b. Registration is restricted to the property owner,
who shall provide proof of possession of the
registered premises, and to natural persons
only. The host may be the property owner or
another principal resident.
c. A registration number shall be assigned to
each registered establishment, which shall be
clearly noted along with any advertisement for
lodging.
d. Active registrations shall not expire, provided
that the property owner shall renew registration
on an annual basis. If a property owner fails to
renew a registration, the registration shall be
considered terminated by the property owner.
e. Registration does not vest the premises or the
property owner with any rights. Registration
terminates upon transfer of the property to
another owner.
f. Any bedroom rentals for periods of twenty-nine
(29) days or less not properly registered as a
bed and breakfast shall register as a homestay.
2) The maximum number of guest rooms allowed

shall be one less than the total number of
bedrooms in the dwelling unit, not to exceed three
PH4-18
8
(3) guest rooms.
3) In the R and H districts:
1. The host shall issue a parking placard to each

guest parking on site.
2. Guest parking shall be restricted to behind the
plane of the front façade of the home, except
on an existing improved parking surface
existing at the time of the adoption of this
ordinance.
3. No more than three (3) motor vehicles owned
or operated by patrons shall be parked onsite
at any time.
4) The use provisions of this section are not subject to

variance by the board of adjustment.
5) If there are three (3) final determinations of

violations of the City Code and/or criminal
convictions related to the parcel (on, adjacent to,
or within the property) by the property owner,
tenant, guest, host, lessee, or individual otherwise
related directly to the property within any rolling
three hundred sixty five (365) day period, shall
constitute a violation of the terms of registration
and shall terminate registration. For any
registration that is terminated due to code/criminal
violations, the property owner shall be ineligible
for registration for a period of three (3) years.
6) Any property owner registering a homestay

lodging, as well as any host, shall be responsible
for ensuring compliance with all federal, state, and
local laws, including, but not limited to tax code,
building code, fire code, and environmental health
regulations for the level of occupancy of the
homestay.
7) Property owners registering a homestay lodging

are responsible for keeping in full force and effect
during all times the dwelling unit is used as a
homestay lodging commercial general liability
insurance with a total limit of not less than
$500,000 each occurrence for bodily injury and
property damage.
8) Homestay lodging registrants and hosts shall

maintain records demonstrating that the home is
the host’s primary residence, the dates of rental for
the previous three hundred sixty five (365) days,
and the number of renters. Such records shall be
PH4-19
9
made available, upon request, to the City Manager.
9) The definition of “family” and the restriction of a

minimum thirty (30)-day rental period in the MF
districts shall not apply to properly registered
homestay lodging.
10) Written notice shall be conspicuously posted inside

each short-term lodging unit setting forth the
following information:

(b) The address of the lodging, the maximum
number of overnight occupants, and the day(s)
(c) The non-emergency phone number of the city
of Wilmington Police Department.
(e) That parties, events, classes, weddings,
receptions, and other large gatherings are not
permitted.
Add homestay as a use 18-177 Add homestay lodging under “uses permitted under
permitted with prescribed 18-178 prescribed conditions” in the R-20, R-15, R-10, R-7, R-5,
conditions 18-179 R-3, MF, HD, HD-R, and HDMU districts
18-180
18-181
18-182
18-184
18-187
18-188
18-189
Uses – add regulations for Code Proposed Changes (additions underlined, deletions in
whole-house and homestay Section strikethrough)
lodging (commercial and
mixed-use districts)
Add definition of whole- 18-812 (in Whole-house lodging – A business engaged in the rental
house lodging alphabetical of an entire dwelling unit that provides lodging for pay, for
order) a maximum continuous period of twenty-nine (29) days
and does not include the include serving of food. Whole-
house lodging uses are exempt from the definition of
“family” and specifically excludes events, classes, parties,
large gatherings, and other non-lodging uses.
Add homestay and whole- 18-185 Add homestay and whole-house lodging under “uses
house lodging in some 18-190 permitted under prescribed conditions” in the O&I-1, O&I-
commercial and mixed-use 18-191 2, CB, RB, CBD, AI, RFMU, MX, MSMU, and UMX
districts 18-193 districts
18-194
18-195
18-196
18-200
PH4-20
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18-202
18-204
Add regulations for whole- 18-329 Sec. 18-329. Whole-house Lodging and Homestay
house lodging and Lodging in the O&I-1, O&I-2, CB, RB, CBD, AI, RFMU,
homestay lodging in some MX, MSMU, and UMX Districts.
commercial and mixed-use
districts (a) Registration.
a. Property owners shall register each
establishment annually with the city of
Wilmington. The property owner shall provide
proof of possession of the registered premises.
b. A registration number shall be assigned to
each registered establishment, which shall be
clearly noted along with any advertisement for
lodging.
(b) Any use for which there are three (3) final
determinations of violations of the City Code and/or
criminal convictions related to the parcel (on, adjacent
to, or within the property) by the property owner,
tenant, guest, host, lessee, or individual otherwise
related directly to the property within any rolling three
hundred sixty five (365) day period, shall constitute a
violation of the terms of registration and shall
terminate registration. For any registration that is
terminated due to code/criminal violations, the
property owner shall be ineligible for registration for a
period of three (3) years.
(c) A property owner, as well as any host/operator, shall

be responsible for ensuring compliance with all federal,
state, and local laws, including, but not limited to tax
code, building code, fire code, and environmental
health regulations for the level of occupancy of the
short-term lodging.
(d) Property owners shall be responsible for keeping in full

force and effect during all times the unit is used as a
short-term lodging or homestay commercial general
liability insurance with a total limit of not less than
$500,000 each occurrence for bodily injury and
property damage.
(e) Written notice shall be conspicuously posted inside

each short-term lodging unit setting forth the following
information:
1. The name and telephone number of the
host/operator.
2. The address of the lodging, the maximum
number of overnight occupants, and the day(s)
3. The non-emergency phone number of the city
PH4-21
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of Wilmington Police Department.

5. That parties, events, classes, weddings,
receptions, and other large gatherings are not
permitted.
(f) The host/operator shall ensure that all refuse is

stored in appropriate containers and set out for collection
on the proper collection days and the carts removed from
the street or alley on the scheduled collection day, in
accordance with Section 10-14 of the City Code.
(g) Preparation and service of food by host/operators for

guests shall be prohibited. No cooking shall be permitted
in individual bedrooms.
(h) Within the CBD, short-term lodging uses shall be

prohibited on the ground floor of street-facing facades,
excluding alleys.
CONSISTENCY WITH ADOPTED PLANS
While the Create Wilmington Comprehensive Plan does not address short-term lodging specifically,
there are several relevant policies and considerations. The plan is designed to provide a framework for
considering the “big picture,” looking beyond a parcel-by-parcel approach to a broader framework. The
current reliance on a 1980s, suburban-style separation of uses forces inefficient development patterns
and a heavy reliance on motor vehicle mobility. The use of “zoning districts with highly specific land uses
has fallen out of sync with desired development patterns and Wilmington’s modern development needs”
and does not align neatly with the modern sharing economy (Policies, Chapter 1, p 3-16). The following
analysis examines the proposal relative to the policies of the City’s Comprehensive Plan. Policies that
most pertain to the proposed amendment are provided below. Not all policies carry equal weight, and
depend on the specifics of the proposal.
Strong Support Modest Support Modest Non-support Strong Non-support
Policies 1 Development & City Building

Neighborhood Conservation, Infill, and Redevelopment
1.7.1 Growth should be accommodated in the city through mixed-use neighborhoods
with a variety of housing types and price points.
1.7.2 Revitalization and stabilization of neighborhoods at risk should be facilitated
through grants, loans, housing rehabilitation efforts, commercial investment
programs, capital improvements, public-private partnerships, and other
actions.
1.7.3 The need to increase housing supply, neighborhood commerce, and to mature
as a city should be balanced with the need to protect desired neighborhood
character, preserve historic resources, and protect the natural environment.
1.7.4 Unique character areas that have become marked by vacant or abandoned
buildings, underutilized older buildings, and low occupancy rates should be
PH4-22
12
priority areas for rehabilitation and adaptive reuse.

1.7.5 Historic and unique neighborhoods with an abundance of desired character
should be protected and conserved through the use of zoning, reinvestment,
and other tools.
Policies 3 Housing
Diversity of Housing Options
3.1.5 The preservation of existing housing units, rather than demolition, should be
encouraged, especially structures of historic significance.
Fair Housing, Universal Design, and Aging in Place

3.4.1 Universal design and lifecycle housing should be encouraged to facilitate the
ability of homeowners and neighborhood residents to age in place in their
homes and neighborhoods.
3.4.3 Housing rehabilitation programs that assist elderly homeowners to repair,
modernize, and improve the energy efficiency of their homes should be
supported.
Policies 5 Economic Development
Neighborhood Reinvestment
5.2.1 In partnership with neighborhood groups, focused reinvestments to make safe,
attractive, and walkable neighborhoods and attract skilled workers to
Wilmington should be encouraged. A mix of housing types and price points
should be encouraged to diversify neighborhoods, particularly around business
clusters and schools.
Business Development
5.3.5 In collaboration with businesses and neighborhoods, issues and conflicts that
inhibit economic growth and neighborhood development should be addressed
in order to help grow and expand job opportunities and provide a healthy
economic base.
5.3.10 Low-impact, home-based businesses and “cottage industries” should be
supported, where appropriate.
Tourism and Hospitality
5.6.3 Diverse and accessible lodging and accommodations to support tourism
growth should be supported through partnerships with developers, investors,
and other local organizations.
Policies 11 Historic Preservation
Wilmington’s Historic Identity
11.1.2 The city’s historic resources and heritage should be recognized and promoted
as an economic asset. As the city grows and redevelops, stewardship of
neighborhoods, places, landmarks, historic districts, and landscapes should be
fostered.
Housing, Adaptive Reuse, and Rehabilitation
11.3.1 Adaptive reuse of historic buildings and sites should be encouraged to support
the goals of housing diversity and affordability, economic development,
environmental sustainability, parks and recreation, and urban design,
particularly in areas with a strong historic context.
11.3.4 Reuse and rehabilitation of existing dilapidated homes should be encouraged
and supported for use as scatter-site workforce housing units. The minimum
housing code should be applied in a manner that ensures historic preservation.
PH4-23
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The issue of regulating uses that have become increasing popular in the new sharing economy has
been difficult for cities all over the world to navigate and requires an understanding that these uses
require a different regulatory response than more traditional uses. Allowing an entire segment of the
economy to remain illegal “forces that economic activity underground, where it is more difficult to
understand that nature of the economic activity. Instead, regulations must be “reimaged to achieve
the same purpose of the regulations first written for the traditional industry, as well as the new
markets created by the sharing economy1.”
The goals of this proposal are to:

1. Ensure the safety, welfare and convenience of renters, owners and neighboring property
owners throughout Wilmington.
2. Balance the legitimate livability concerns with the rights of property owners to use their
property as they choose.
3. Recognize the need to limit short-term rental options within the neighborhoods to ensure
compatibility, while recognizing the benefits of short-term rentals in economic
development, business, film, hospital-related short stays, and transitional housing.
4. Help maintain the city’s needed housing supply for residential use, balanced with the
need to evolve with current economic realities.
5. Protect the character of the neighborhoods by limiting the number and concentration of
short-term rentals in residential zones. The transient rental of dwelling units has the
potential to be, but is not necessarily, incompatible with surrounding residential uses.
6. To balance the regulation of dwellings listed for transient occupancy necessary to ensure
that these uses will be compatible with surrounding residential uses, will not materially
alter the neighborhoods in which they are located and in a manner that is enforceable
and equitable.
CONCLUSION / RECOMMENDATION
The matter of short-term lodging is one of diverse opinions, options, regulations, and courses of
action. Staff acknowledges there are strong opinions on all sides of the issue. While there are no
clear planning best practices, staff believes the proposed amendment represents regulations that
best meet the needs of the city, best support the Create Wilmington Comprehensive Plan and is in
the public interest. Registration of such uses will aid in code enforcement and the time-limited nature
of registration allows for evaluation and reassessment to determine persistent types of violations and
repeat offenders so that specific, targeted solutions may be developed in the future. Staff
recommends approval of the amendment to the Land Development Code as proposed.
NEIGHBORHOOD CONTACT
Planning Commission City Council
Advertisement Date(s) 12/29/17 / 1/25/18 6/8/18 & 6/15/18
The Planning Commission held work sessions to discuss proposed amendments on July 12 and
August 23, 2017 and a third work session in October 18, 2017, where public input was heard.
Public input meetings were held on March 17, 2016 and March 14, 2017. Online and paper surveys
were conducted in March 2016.
Staff presented the issue to City Council in May, June, October, and November 2016 and again in
February, April, May 2017 and November 2017.
1
Miller, Stephen R., First Principles for Regulating the Sharing Economy, University of Idaho College of Law, 2015
PH4-24
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Detailed information from public input meetings, surveys, and presentations to City Council can be
found online at www.wilmingtonnc.gov/rentals
ACTIONS TO DATE
City Council Scheduled for public hearing 6.17.18

Work session – 4.30.18
Joint work session with PC and CC – 3.16.18
Planning Commission Continued to 1/3/18 meeting
Public hearing on 12/6/17
Work sessions were held with the Planning Commission on
6/7/17, 7/12/17, 8/23/17, and 10/18/17
Information from the April 30, 2018 City Council work session:
Staff presented the proposed amendments in three parts. Part A was homestays in residential
districts, Part B was homestays and whole-house lodging in commercial and mixed-use districts, and
Part C was whole-house lodging in residential districts. Council’s discussion focused on parts A and
B, and directed staff to schedule those two components for public hearing, with part C to follow
shortly thereafter.
There was some discussion about using the university area parking overlay standards as a model
for the homestay off-street parking standards. That section of the code is included as an attachment.
Information from the March 16, 2018 joint Planning Commission and City Council work
session:
Staff reviewed the proposed amendments as presented to Planning Commission at their January 29,
2018 meeting. After extensive discussion, points on which there appeared to be general agreement
were outlined, including allowing homestays as proposed and allowing whole-house lodging in
commercial and mixed-use districts. Council directed staff to separate the proposed amendments
into three parts (homestays in residential districts, homestays and whole-house lodging in
commercial and mixed-use districts, and whole-house lodging in residential districts) and to present
the revised draft at a future work session.
Information from the January 29, 2018 Planning Commission meeting:
After a lengthy discussion, a motion was made to recommend approval of the proposed amendment,
striking the off-street parking requirements. That motion failed 2-4. A second motion was made to
recommend approval of the proposed amendment, striking the off-street parking requirements, the
400/650-foot separation requirements between type II whole-house rentals, and striking the limit on
registration for whole-house lodging to natural persons. That motion failed 3-3. A third motion was
made to recommend approval, striking the off-street parking requirements and the 400/650-foot
separation requirements for type II whole-house lodging. That motion also failed 3-3. Because no
motion was approved, no recommendation was made.
PH4-25
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Information from the December 6, 2017 Planning Commission meeting:
Twenty-seven people elected to speak during the public hearing. Citizens spoke about the proposed
separation requirements being too onerous, against allowing whole-house rentals in any residential
districts, in support of allowing whole-house rentals with more flexibility, the lack of data to support
the proposed amendments, and the potential negative impacts of allowing or disallowing whole-
house rentals in residential districts. Overall, there seemed to be general support for the proposed
allowance of homestay lodging and whole-house lodging within the commercial and mixed-use
districts, while the issue of whole-house lodging within residential districts remained contentious.
The public hearing was closed. After some discussion, the commission voted 7-0 to continue the
item to the January 3 meeting, with a special start time of 4:00 PM.
Information from the October 18, 2017 Planning Commission work session:
Following a presentation from staff, the Planning Commission heard public input on the issue. There
were several speakers in favor of and in opposition to short-term lodging. Following the public input
session, the Planning Commission directed staff to make revisions to the July draft ordinance and to
schedule the proposed ordinance for public hearing at the December Planning Commission meeting.
Information from the August 23, 2017 Planning Commission work session:
Following a presentation from staff, the Planning Commission continued to discuss specific issues
related to enforcement, on-site supervision, increased flexibility for homestay lodging, and
separation requirements for whole-house lodging.
Information from the July 12, 2017 Planning Commission work session:
Following a presentation from staff, the Planning Commission discussed parking issues, separation
requirements, grandfathering, and the distinctions between allowing short-term lodging in
commercial districts versus residential districts.
Information from the June 7, 2017 Planning Commission work session:
Following a presentation from staff, the Planning Commission discussed enforcement issues,
alternative way to limit the number of short-term lodging uses (such as allowing one per every 20
homes rather than one per 650 feet), the possibility of allowing homestays without restriction, and
what is driving the need for a code amendment at this time. It was suggested that whole-house
rentals be permitted without a separation requirement if there is proximate supervision.
ATTACHMENTS
1. Minutes from the Planning Commission work sessions and meetings

2. Complete draft of proposed code changes
3. Planning Commission recommendation form (dated 1/29/18)
4. University Area Parking on Residential Lots (Sec. 5-89.1 of the City Code)
5. Ordinance (dated 6/19/18)
PH4-26
LDC-1-717A Attachment 2 – Draft code changes
PROPOSED AMENDMENT
Following are the proposed amendments to the Land Development Code. Additions are
underlined, deletions are in strikethrough.
Chapter 18, Article 5. Division II. District Regulations.
***
Sec. 18-177. R-20 Residential District.
(c) Uses permitted under prescribed conditions. The following uses are permitted
provided that they meet all requirements of this section and all other applicable
requirements established in these regulations:
***
Sec. 18-178. R-15, Residential District.
provided that they meet all requirements of this section, Article 6, and all other applicable
requirements established in these regulations:
***
(8) Reserved Homestay lodging
requirements established in these regulations.
***
***
PH4-27
***
***
Sec. 18-184. Multifamily Residential Districts (MF-L, MF-M, MF-MH, MF-H)
(c) Uses permitted under prescribed conditions. The following uses are permitted provided that
they meet all requirements of this section, Article 6, and all other applicable requirements
established in these regulations.
***
Sec. 18-185. MX, Mixed Use District.

(c) Permitted uses
(1) Principal uses
***
(e) Entertainment and lodging category
***
viii. Homestay lodging by prescribed conditions
ix. Whole-house lodging by prescribed conditions
Sec. 18-187. HD, Historic District.
***
PH4-28
(d) Permitted by special use permit. The following uses are permitted subject to the issuance
of a special use permit and provided that they meet all requirements of this section, Article 6, and
all other applicable requirements established in these regulations.
***
(7) Guest lodging reserved
Sec. 18-188. HD-MU, Historic District-Mixed Use.
(d) Uses permitted under prescribed conditions. The following uses are permitted
***
(e) Permitted by special use permit. The following uses are permitted subject to the issuance
***
***
Sec. 18-189. HD-R, Historic District-Residential.
(d) Uses permitted under prescribed conditions. The following uses are permitted provided
that they meet all requirements of this section, Article 6, and all other applicable
***
Sec. 18-190. - O&I-1, Office and Institutional District 1.
provided that they meet all requirements of this section, Article 6, and all other
applicable requirements established in these regulations.
***
***
PH4-29
***
***
Sec. 18-191. - O&I-2, Office and Institutional District 2.
***
***
***
***
Sec. 18-193. MSMU, Main Street Mixed-use District.
***
l. Homestay lodging
m. Whole-house lodging
***
***
Sec. 18-194. CB, Community Business District.
PH4-30
***
***
***
Sec. 18-195. RB, Regional Business District.
***
***
***
Sec. 18-196. CBD, Central Business District.
***
Sec. 18-200. - AI, Airport Industrial District.
PH4-31
(f) Uses permitted under prescribed conditions. The following uses are permitted
***
Sec. 18-202. RFMU, Riverfront Mixed-use District.
e. Entertainment and lodging category.
***
ix. Homestay lodging, provided the requirements of Sec. 18-329 are met
x. Whole-house lodging, provided the requirements of Sec. 18-329 are met
Sec. 18-203. RO, Residential Office District.

***
***
Sec. 18-204. UMX, Urban Mixed-use District.

(2) Uses permitted under prescribed conditions. The following uses are permitted provided
that they meet all requirements of this section, Article 6, and all other applicable requirements
established in these regulations.
***
j. Homestay lodging
k. Whole-house lodging
Article 6. Division I. Prescribed Conditions, Special Use Prerequisites, and Accessory

Uses and Structures.
Sec. 18-267. - Dormitory, private.
***
(f) In the districts where permitted, a proposed private dormitory shall not locate
closer than a one-mile radius from any existing permitted private dormitory, fraternity
house, sorority house, guest lodge, family care home, group home supportive small, group
home supportive, medium, group home supportive, large, and group home residential in a
residential district. The distance between the proposed use and the existing permitted
private dormitory, fraternity house, sorority house, guest lodge, family care home, group
home supportive small, group home supportive, medium, group home supportive, large,
and group home supportive residential shall be measured by following a straight line from
PH4-32
the nearest point of the lot line of the proposed use to the nearest point of the lot line of the
lot on which the existing permitted use is located.
Sec. 18-277. - Guest lodging. Reserved
Guest lodging shall comply with the following:
(a) The minimum lot size shall be three thousand (3,000) square feet.
(b) There shall be a floor plan showing the number of lodging units along with the
residential quarters provided as a principal residence.
(c) There shall be no more than two (2) residents occupying a bedroom, and the
usable floor space shall be no less than two hundred fifty (250) square feet per resident,
except that a child may also occupy the bedroom of the child's parents.
(d) There shall be a management plan submitted with the application for a special
use permit that includes at a minimum the following:
(1) A plan of supervision that includes adequate supervision provided twenty-four

(24) hours per day by full-time, compensated, on-premises resident supervisory
personnel associated with the facility and said personnel shall be of a level sufficient
to adequately supervise the residents and to monitor and enforce the other
requirements of this section. Adequate supervision shall also be provided in
accordance with any licensing requirement. If a license is not required or does not
require adequate supervision, then the guest lodging shall have written operating
procedures or manual and a structured system of management. Any more than three
(3) final determinations of violations of the City Code and/or criminal convictions
related to the premises within one (1) month, or six (6) within one (1) year shall
constitute inadequate supervision and a violation of the special use permit. Offenders
shall include property owners as well as lessees, tenants, residents, and occupants.
(2) A plan for noise and solid waste management approved as part of the
management and site plan.
(3) Adequate provision for the recreation and laundry needs of the guests.
(4) Projected maximum number of residents/guests and any resident supervisory
personnel.
(5) Hours of operation.
(6) Delivery hours.
(7) On-site food preparation or dining facilities are for residents and lodging guests
only. Continental breakfast may be catered by external vendors.
(8) No liquor license.
(9) No amplified sound shall emanate from the premises.
(e) In the HD and HDMU zoning districts a proposed guest lodge shall not locate
closer than a one (1) mile radius from any existing permitted guest lodge, private
dormitory, fraternity or sorority house, family care home, group home supportive small,
group home supportive, medium, group home supportive, large, and group home
residential in a residential district. The distance between the proposed use and the existing
permitted private dormitory, fraternity house, sorority house, guest lodge, family care
home, group home supportive small, group home supportive, medium, group home
supportive, large, and group home supportive residential shall be measured by following a
PH4-33
straight line from the nearest point of the lot line of the proposed use to the nearest point of
the lot line of the lot on which the existing permitted use is located.
(f) For new construction, the facade of the structure shall be designed to be
architecturally compatible with the streetscape for the district in which it is located. Any
proposed change to the facade of an existing structure shall be architecturally compatible
with the surrounding neighborhood.
(g) The guest lodge shall not be established, constructed, expanded, altered,
changed, operated, or occupied, except in accordance with the Minimum Housing Code
and Abandoned Structures Ordinance, and all applicable federal, state, and local
regulations, including, but not limited to, any licensing requirements.
(h) In historic districts, all signs shall be nonilluminated and shall not exceed four (4)
square feet in area.
***
Sec. 18-289. - Multifamily District Mixed Use (MFMU) within the MF-M, MF-MH, and MF-H
Districts.
***
(k) Commercial uses shall be limited to the following:
***
8. Guest lodging Reserved
***
Sec. 18-305. - Special uses in the Historic Districts, with the exception of the Historic District-
Mixed Use (HD-MU) and the Central Business District-Historic District Overlay (CBD-HDO).
***
(d) Applications for guest lodging shall include a management plan. Reserved
***
Sec. 18-329. Whole-house Lodging and Homestay Lodging in the O&I 1, O&I-2, CB, RB,
CBD, AI, RFMU, MX, MSMU, and UMX Districts.
(a) Registration.
a. Property owners shall register each establishment annually with the city of
Wilmington.
b. A registration number shall be assigned to each registered establishment, which
shall be clearly noted along with any advertisement for lodging.
(b) Any use for which there are three (3) final determinations of violations of the City Code
and/or criminal convictions related to the parcel (on, adjacent to, or within the property) by
the property owner, tenant, guest, host, lessee, or individual otherwise related directly to
the property within any rolling three hundred sixty five (365) day period, shall constitute a
violation of the terms of registration and shall terminate registration. For any registration
that is terminated due to code/criminal violations, the property owner shall be ineligible for
PH4-34
registration for a period of three (3) years.
(c) A property owner, as well as any host/operator, shall be responsible for ensuring
compliance with all federal, state, and local laws, including, but not limited to tax code,
building code, fire code, and environmental health regulations for the level of occupancy of
the short-term lodging.
(d) Property owners shall be responsible for keeping in full force and effect during all times the
unit is used as a short-term lodging or homestay commercial general liability insurance with
a total limit of not less than $500,000 each occurrence for bodily injury and property
damage.
(e) Written notice shall be conspicuously posted inside each lodging unit setting forth the
1. The name and telephone number of the host/operator.
2. The address of the lodging, the maximum number of overnight occupants, and the
3. The non-emergency phone number of the city of Wilmington Police Department.
5. That parties events, classes, weddings, receptions, and other large gatherings are
not permitted.
(f) The operator shall ensure that all refuse is stored in appropriate containers and set out
for collection on the proper collection and the carts removed from the street or alley on the
scheduled collection day, in accordance with Section 10-14 of the City Code.
(g) Preparation and service of food by host/operators for guests shall be prohibited. No
cooking shall be permitted in individual bedrooms.
(h) Within the CBD, short-term lodging uses shall be prohibited on the ground floor of street-
facing facades, excluding alleys.
Sec. 18-330. Homestay lodging in residential, multifamily, and historic districts.
Homestay lodging uses shall only be allowed in lawfully permitted dwelling units serving as the
principal residence of the host. Only the property owner may register a homestay lodging;
however, the principal resident may act as a host. Homestay lodging uses do not include bed
and breakfast lodging uses.
1) Registration.
(a) A property owner shall register each establishment annually with the city of
Wilmington.
(b) Registration is restricted to the property owner, who shall provide proof of
possession of the registered premises, and to natural persons only. The host may be
the property owner or another principal resident.
(c) A registration number shall be assigned to each registered establishment, which
shall be clearly noted along with any advertisement for lodging.
(d) Active registrations shall not expire, provided that the property owner shall renew
registration on an annual basis. If a property owner fails to renew a registration, the
registration shall be considered terminated by the property owner.
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(e) Registration does not vest the premises or the property owner with any rights.
Registration terminates upon transfer of the property to another owner.
(f) Any bedroom rentals for periods of twenty-nine (29) days or less not properly
registered as a bed and breakfast shall register as a homestay.
2) The maximum number of guest rooms allowed shall be one less than the total number of
bedrooms in the dwelling unit, not to exceed three (3) guest rooms.
3) In the R-20, R-15, R-10, R-7, R-5, R-3, HD, HD-R, and HDMU districts:
(a) The host shall issue a parking placard to each guest parking on site.
(b) Guest parking shall be restricted to behind the plane of the front façade of the home,
except on an existing improved parking surface existing at the time of the adoption of
this ordinance.
(c) No more than three (3) motor vehicles owned or operated by patrons shall be parked
onsite at any time.
4) The use provisions of this section are not subject to variance by the board of adjustment.
5) If there are three (3) final determinations of violations of the City Code and/or criminal
convictions related to the parcel (on, adjacent to, or within the property) by the property
owner, tenant, guest, host, lessee, or individual otherwise related directly to the
property within any rolling three hundred sixty five (365) day period, shall constitute a
violation of the terms of registration and shall terminate registration. For any
registration that is terminated due to code/criminal violations, the property owner shall
be ineligible for registration for a period of three (3) years.
6) Any property owner registering a homestay lodging, as well as any host, shall be
responsible for ensuring compliance with all federal, state, and local laws, including, but
not limited to tax code, building code, fire code, and environmental health regulations for
the level of occupancy of the homestay.
7) Property owners registering a homestay lodging are responsible for keeping in full force
and effect during all times the dwelling unit is used as a homestay lodging commercial
general liability insurance with a total limit of not less than $500,000 each occurrence for
bodily injury and property damage.
8) Homestay lodging registrants and hosts shall maintain records demonstrating that the
home is the host’s primary residence, the dates of rental for the previous three hundred
sixty five (365) days, and the number of renters. Such records shall be made available,
upon request, to the City Manager.
9) The definition of “family” and the restriction of a minimum thirty (30)-day rental period in
the MF districts shall not apply to properly registered homestay lodging.
10) Written notice shall be conspicuously posted inside each lodging unit setting forth the

(b) The address of the lodging, the maximum number of overnight occupants, and the
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(c) The non-emergency phone number of the city of Wilmington Police Department.
(e) That parties, events, classes, weddings, receptions, and other large gatherings are
not permitted.
Article 9. Off-street Parking and Loading; Driveways
Sec. 18-532. Parking Schedule

(Strike from the table)
Guest lodging 1 per guest room and 1 per supervisor and staff person
Article 15. Definitions.
Sec. 18-812. Definitions.
***
Guest lodging: A premises in which rooms are rented, with or without board, on a fee basis to
permanent or transient guests; provided all accessory services, such as dining rooms, shall be
available to such guests only and not open to the general public.
***
Homestay lodging – The business engaged in the rental of individual bedrooms within a dwelling
unit that serves as the host’s principal residence, that provides lodging for pay, for a maximum
continuous period of twenty-nine (29) days, that does not include serving food, and to which the
definition of family does not apply.
Homestay host: a permanent, full-time resident of a property who is present during the homestay
term for the entire time lodgers are staying on the property. The host may be temporarily absent
from the property for purposes related to normal residential activities, such as shopping, working,
attending classes, etc.; however, the host must be at the property overnight when lodgers are
present.
***
Housing unit (dwelling unit): One (1) or more rooms together, constituting a separate, independent
housekeeping establishment for owner occupancy, or rental or lease on a weekly or longer basis, and
physically separated from any other housing unit which may be in the same structure, and containing
independent cooking and sleeping facilities for not more than one (1) family.
***
Principal residence: The residence domicile where an individual has a true, fixed, permanent home
and principal establishment, and to which place, whenever absent, the individual has the intention
PH4-37
of returning. A principal residence is the one a person: 1) uses as his/her voting address; 2) uses as
the address on his/her federal and state tax returns, military purposes, passports, vehicle
registrations, insurance policies, driver’s license and bank accounts, insurance, or any other bill or
item that requires a response; 3) occupies for at least one hundred eighty-three (183) days during a
calendar year.
***
Whole-house lodging – A business engaged in the rental of an entire dwelling unit that provides
lodging for pay, for a maximum continuous period of twenty-nine (29) days and does not include the
include serving of food. Whole-house lodging uses are exempt from the definition of “family” and
specifically excludes events, classes, parties, large gatherings, and other non-lodging uses.
PH4-38
LDC-1-717A Attachment 4
DIVISION 7. - UNIVERSITY AREA PARKING ON RESIDENTIAL LOTS
Sec. 5-89.1. - Area identified.
For purposes of this Division 7, the area in which these parking regulations shall be enforced shall be
defined as the lots used for residential purposes located on the streets listed in Section 16 of the Traffic
Control Schedules.
(Ord. No. 0-2007-61, § 1, 8-7-07)
Sec. 5-89.2. - Prohibited activity.
No owner or tenant of property located within the identified area shall park, stand or allow to park or
stand more than two (2) vehicles in the front yard of a dwelling other than those vehicles belonging to or
being operated by the owner or a tenant of the dwelling located thereon.
(Ord. No. 0-2007-61, § 1, 8-7-07)
Sec. 5-89.3 - Presumption of violation.
The owner or tenant of property located within the identified area will be presumed to have violated
this division when vehicles in excess of those allowed under section 5-89.2 are present and observed by
a Code Enforcement Officer or the designee of the City Manager on more than two (2) occasions within a
thirty-day period. This presumption shall not include any designated North Carolina state holidays. An
owner of any premises subject to this division who is not also an occupant of the premises shall be
responsible for any actions by tenants, guests, or other licensees that constitute second or subsequent
violations of this division; provided, that no absentee owner shall be liable unless notified of first or
previous violations of the division, and further provided that such first or previous violations shall have
occurred within the previous twelve-month period. Notice of any first or previous violations pursuant to
this paragraph shall be effected by registered or certified mail. No absentee owner may be subjected to
criminal liability under this chapter, but shall be subject to civil penalties and equitable relief as provided in
section 5-122. This section shall in no way relieve any other person from responsibility for violations of
this division.
(Ord. No. 0-2007-61, § 1, 8-7-07)
PH4-39
1
CITY OF WILMINGTON
PLANNING COMMISSION MEETING MINUTES
June 7, 2017
A special called work session of the Wilmington Planning Commission was held on June 7,
2017 at 4:00 p.m. in the City Council Chambers, City Hall Wilmington, North Carolina.
Members Present: Members Absent:

Chairman Deb Hays None
Vice-Chairman Richard Collier
Mr. Bruce McGuire
Mr. Kemp Roberts
Mr. Jeff Hovis
Ms. Laura Miller
Mr. Bruce Bowman
Staff Present:
Glenn Harbeck, Director
Ron Satterfield, Assistant Director
Meredith Everhart, Deputy City Attorney
Christine Hughes, Senior Planner
Kathryn Thurston, Zoning Administrator
Tamara Mercer, Planning Coordinator
Chairman Hays called the special work session to order at 4:00 p.m.
1. SHORT TERM RENTALS/SHORT TERM LODGING: The Planning Commission will

hold a SPECIAL called work session for discussion of short term rentals/short
term lodgings. Christine Hughes, Senior Planner 910.341.5885
christine.hughes@wilmingtonnc.gov
Senior Planner, Christine Hughes reviewed the staff’s timeline for addressing the issue
which has been: benchmarking and key issues, public input session in March of 2016, an online
survey in spring 2016, presentations to Council; May, June, October, November 2016, and
February 2017, a public input session in March 2017, and the subsequent presentations to
Council in April and May 2017.
She said in early 2017, HostCompliance.com identified approximately 514 distinct

locations currently operating in Wilmington. This count does not differentiate between whole-
house and homestay rentals, nor does it indicate the zoning of each location. Staff notes that it
is difficult to discern the type of rental (hosted or whole house), the address, or the zoning of the
various locations.
Ms. Hughes reviewed the proposed definition of “short-term lodging” as: An

establishment in a private home that provides lodging for pay, for a period of seven days or less,
where the primary use is for tourism rather than a residential dwelling unit that does not serve
meals. Such a use shall be subject to applicable General Statutes, including but not limited to
NCGS 130A-247 and 143-138(b2)(2) which is consistent with NCGS.
The proposed definition of “Homestays”: A type of home occupation that involves the
rental of individual bedrooms in a dwelling unit that provides lodging for pay, for a maximum
continuous period of 29 days or less, that does not include serving food, and to which the
definition of “family” does not apply. Homestays in Commercial Districts are proposed as: O&I-
1, O&I-2, CB, RB, CBD, RFMU, AI, UMX, and MX. She noted these districts allow hotels and
motels. She discussed the possible requirements for registration, violations and compliance.
Ms. Hughes reviewed “Homestays” in Residential Districts would be permitted as a

home occupation in the R, H, and MF districts which would follow the current B & B regulations.
Home occupations are allowed as: operator’s principal residence, incidental to the use of the
dwelling unit as a home, no exterior changes to the appearance of the premises, and only one
per dwelling unit. She noted they would be allowed only in a single-family dwelling or in an
accessory unit. She discussed the possible requirements for registration, violations and
compliance. Registration would be required on annual basis, must be a primary residence, 650
PH4-40
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feet or one block from any homestay, B&B, or STL, Inactive registrations would expire. Ms.
Hughes explained peer to peer rentals.
There was a lengthy question and answer period. Commissioner Bowman pointed out
that code requirements for commercial businesses need a sprinkler system and he asked about
fire safety requirements in this case. Commissioner Bowman asked for statistics on the harm
that these businesses do to a community. He questioned the logistics of enforcing the
regulations. Ms. Hughes replied enforcement would be conducted the same as all the city’s
zoning regulations.
Chairman Hays asked to review the home occupation regulations in the code and Ms.
Hughes reviewed the home occupation allowances. Ms. Hughes explained that the city staff
views the regulations as uniform across the city in order to maintain fair regulations in all
districts. There was further discussion regarding the reasons for separation of the historic
district from the rest of the city.
Commissioner Bowman moved to adjourn the work session at 5:17 p.m. and the motion
was seconded by Commissioner McGuire.
The motion carried 7 – 0, unanimously.
Tamara Mercer
Planning Coordinator
PH4-41
1
CITY OF WILMINGTON
PLANNING COMMISSION WORK SESSION MINUTES
July 12, 2017
A special work session of the Wilmington Planning Commission was held on July 12, 2017 at
4:00 p.m. in the City Council Chambers, City Hall Wilmington, North Carolina.

Mr. Bruce McGuire
Mr. Kemp Roberts
Mr. Richard Collier
Mr. Jeff Hovis
Ms. Laura Miller
Mr. Bruce Bowman
Staff Present:
Amy Schaefer, Assistant City Attorney
Nicole Smith, Associate Planner
Chairman Hays called the special work session to order at 4:00 p.m.
1. WORK SESSION TOPIC- (please note this is not a Public Hearing) Short Term
Rentals/Short Term Lodging: Christine Hughes, Senior Planner 910.341.5885
christine.hughes@wilmingtonnc.gov
Senior Planner Christine Hughes said in late 2015, the City Manager directed planning
staff to review the existing code regulations related to short-term lodging, operating as peer-to-
peer rentals via online platforms, and to review benchmark cities that have recently addressed
or are addressing the issue of short-term lodging. Since that time, City Council has been
presented with a detailed review of best practices across the country, including an in-person
presentation from planners from Asheville, Raleigh, and Cornelius, North Carolina.
Ms. Hughes noted that this amendment reflects months of research, discussion among
City Council members, public input, best practices, and the most recent assessment of legal
issues. The amendment references “short-term lodging,” or whole-house rentals, whereby there
is no host onsite during the time of the rental, and “homestays,” or the rental of rooms (as a
home occupation in the residential districts) while the permanent resident is onsite during the
rental period. Both homestays and short-term lodging are presented as conditional uses in the
residential and commercial districts. Staff notes that deleting the proposed addition of “short-
term lodging” to the residential districts but not the commercial districts would effectively allow
the use only in the identified commercial districts (those where hotel/motel is currently a
permitted use) and prohibit them in the residential districts. “Guest lodging” is proposed to be
deleted as a use, as the definition of this use potentially conflicts with the new uses proposed.
Staff believes there is currently only one guest lodging establishment legally permitted, and it
would be allowed to continue to operate as a grandfathered, non-conforming use.
In early 2017, HostCompliance.com identified approximately 514 distinct locations

currently operating in Wilmington. This count does not differentiate between whole-house and
homestay rentals, nor does it indicate the zoning of each location. Staff notes that it is difficult to
discern the type of rental (hosted or whole house), the address, or the zoning of the various
locations. The code enforcement implications of this approach to regulating homestays and
short-term lodging in the manner proposed are twofold: First the allowance of a limited number
of uses at defined locations enables code enforcement staff to readily identify which locations
are operating outside of the parameters of the code. It does not require staff to try to determine
whether a stay is within a prescribed timeframe or number of nights and second the time-limited
nature of registration allows for evaluation and reassessment to determine persistent types of
violations and repeat offenders and to develop specific, targeted solutions.
PH4-42
2
Ms. Hughes said the benchmark research shows that there are no clear best practices
or standards for addressing the issue of peer-to-peer rentals. While many cities are working
towards developing regulations, other cities have adopted standards and are working on
amendments to those standards.
Ms. Hughes said the proposed amendment, in summary, would:

 Allow homestay as a home occupation in the R, H, and MF districts with a separation
requirement
 Allow short-term lodging as a use permitted by prescribed conditions in the R, H, and MF
districts with a separation requirement
 Allow homestay and short-term lodging in the same commercial districts where
hotel/motel is permitted
 Delete guest lodging as a permitted use and remove all references to guest lodging
Ms. Hughes reviewed the current regulations and the proposed changes to address this
issue and she asked for the Planning Commission to direct staff in policy making. She said the
public input thus far was on both extremes of the spectrum either for or against crafting code
regulations. There has been a diverse collection of opinions which can be reviewed on-line on
the city’s website for short-term lodging/short-term rentals.
Commissioner McGuire asked about on-street parking availability as addressed on page

16 paragraph c. Ms. Hughes clarified how it would be determined. She said the language
which is taken from the code regulations, asks the applicant if they are an operator and to
demonstrate that there is adequate on-street parking available. She discussed the hours for
those parking without a permit. She noted the difficulty with enforcement on some blocks as to
residents who live there and visiting vehicles trying to park in the limited spaces.
In response to an inquiry by Commission McGuire regarding the requirements for

separation in commercial districts, Ms. Hughes noted that on page 14, section 18-329 in the
code, the definition is clarified under prescribed conditions in commercial districts.
Commissioner Bowman submitted his recommendations, addressing the topic as

follows:
1. Add definition for Transient Boarding House per NC Building Code containing more than
one “family” (see exist. definition).
2. Allow Transient Boarding Houses in Single Family residential districts meeting
supplemental provisions in the same fashion as Bed and Breakfasts. Provisions would
be similar to those currently outlined in staff’s “Homestay” definition.
3. Add definition for “Short Term Rental with On-Site Supervision” in which two or more
dwelling units are located on the same parcel with one dwelling unit used as a principal
residence and the other(s) rented on a weekly basis including principal residence and
compliant accessory apartment (whether attached or detached), garage apartment,
duplex, triplex, or quadraplex. Compliant dwelling units must satisfy land area and
Article 6 requirements or be historic and grandfathered.
4. Allow “Short Term Rental with On-Site Supervision” by right in single-family districts.
5. Add definition for “Short Term Rental with Off-Site Supervision” where one or more
dwelling units on the same parcel are rented on a weekly basis without on-site
supervision. Similar to staff’s definition of Short Term Lodging.
6. Allow Short Term Rental with “Off-Site Supervision” in Single Family residential zones
meeting supplemental provisions. Short Term Rentals with Off-Site Supervision in
residential historic districts shall only be allowed by special use permit.
7. Allow three or fewer unrelated people residing in one dwelling unit offering weekly room
rentals if supervised by a resident that is using the dwelling as their principal residence.
Short-term registration is required but not regulated other than enforcing nuisance
complaints.
8. Enforce nuisance complaints within residential zones in a robust fashion for short and
long term rentals as well as owner occupied residences.
9. Periodic assembly events involving tents or outdoor amplified music to be handled by
permit including restriction on frequency per year for any one address.
10. All Short Term Rentals shall require annual registration and shall be subject to
revocation based on nuisance complaints.
11. All Short Term Rentals up to 90 days shall be applicable subject to room occupancy
taxes.
Commissioner Bowman continued and explained his reasons for his suggestions. He
said his notes defined homestays as rented beds in a dwelling and defined accessory
apartments separate from the whole house. Most double dwelling units are supervised,
although his main concern was for properly supervised short term rentals. He was concerned
with the definition of three or fewer un-related persons. He said people are room-mates and it
doesn’t make sense to enforce housing between room-mates. He discussed the regulations for
PH4-43
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boarding houses. He noted what the NC building code requirements for units that need to
install a sprinkler system such as hotels and multi-units. The city’s definition should be
consistent with NC building code. He stated that permit requirements already address regulating
special events such as weddings, tent rentals and events with music.
Commissioner McGuire said the historic district is unique and the houses are close and
guest users are unfamiliar with the district. He was concerned with a short term rental with off-
site supervision. Ms. Hughes pointed out the requirements in Article 6, in which that situation
could be addressed under the special use permit process. Mr. McGuire believed the historic
district needed additional code restrictions.
Homestays in commercial districts were discussed. Short term rentals in commercial

districts were less of a concern, Mr. McGuire said when a home becomes a business that is
different. On-site and off-site supervision was discussed and separation requirements was
further discussed. Units that might be considered ‘grandfathered’ were considered. Noise and
nuisances happen whether it is a rental or an owner occupied stated Commissioner Bowman.
Commissioner Bowman asked what the reason was for restricting them other than to collect tax
or privilege license revenue.
Ms. Thurston, Zoning Administrator explained the zoning requirements for owner
occupied businesses and those businesses considered a ‘grandfathered’ unit.
Chairman Hays discussed her concerns with VRBO, Airbnb and when the minimum
housing code is violated and the difference between staying for one night versus a longer term
stay. She mentioned adequate on-street parking and inquired about permitting on the regulated
blocks downtown which required an on-street residential permit. Commissioner Bowman was
concerned the rules might create a heavy burden and then the business goes underground to
defy regulations. He was concerned this would create a need for more staff for code
enforcement if they are over-regulated.
Ms. Hughes said the requirement is one parking space per bedroom and there are the
blocks which are registered with the parking manager. She noted there is a whole process to
become a permitted block for parking.
Chairman Hays reviewed the benchmark city and the research conducted thus far and
requested additional benchmark city information. She asked for Charleston and Ashville’s LDC
amendments. She discussed software resources to identify the short term rentals. She noted
enforcement remedies for citizen complaints for parking, noise and for trash violators.
Ms. Hughes reviewed the discussion topics and the next procedure for addressing the
issue. Mr. Hovis believed a public hearing would currently be premature as they are not ready to
move forward with the issue. It was determined that another work session would be scheduled.
Commissioner Hovis moved to adjourn the work session and the motion was seconded
by Commissioner Miller.
There being no further business the work session adjourned at 5:52 p.m.
Tamara Mercer
PH4-44
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CITY OF WILMINGTON
SPECIAL MEETING
August 23, 2017
A special work session of the Wilmington Planning Commission was held on August 23, 2017 at
4:00 p.m. at 115 North 3rd Street, 5th floor, Harrelson Conference Room, Wilmington, NC.

Chairman Deb Hays Mr. Richard Collier- excused
Mr. Bruce McGuire Ms. Laura Miller- excused
Mr. Jeff Hovis Mr. Kempt Roberts
Mr. Bruce Bowman
Staff Present:
Chance Dunbar, Parking Manager
Chairman Hays called the meeting to order at 4:00 p.m.
1. SHORT TERM RENTALS/SHORT TERM LODGING: Work session and discussion

regarding Short Term Rentals/ Short Term Lodging. Christine Hughes, Senior
Planner 910.341.5885 christine.hughes@wilmingtonnc.gov
Chairman Hays noted that all received emails from citizens were shared with the entire
Commission. She noted that Vice-Chairman Collier and Commissioner Miller had given prior
notice that they could not attend and their absence was excused.
Chairman Hays introduced Chance Dunbar, the City of Wilmington Parking Manager for
the downtown parking program, and Mr. Dunbar explained the parking program for the
downtown area for Residential Parking Permit (RPP) holders and how they formed the program.
Along the participating streets in the program, Mr. Dunbar said parking is by permit only from
11pm to 3 am, 7 days a week, as well as other restrictions for non-permitted vehicles. He said a
neighborhood would have to identify a parking need in order to qualify for a Residential Parking
Permit. The area or block would submit a petition of 2/3 of the property homeowners on the
block. Then a week long study assessing the vehicle counts would be conducted which must
yield that there is 70% of the parking spaces are occupied. Of those occupied spaces, 30-50%
of the vehicles are outside licensed and registered vehicles that are registered out of the area.
Then a neighborhood vote by the property owners and/ or registered vehicle residents would be
completed in order to implement the Residential Parking Permit block.
The cost is $25.00 per year, per vehicle and there are three vehicles allowed per
residence and one annual visitors pass is also allowed. Mr. Dunbar noted that the city cannot
force a block into the RPP program. The program must be requested by its residents, however
the City can limit the number of vehicles.
Commissioner McGuire suggested the home-stay or short-term rental could be restricted

to two vehicles. Ms. Hughes explained the rules for a home occupation and the parking
requirements for the vehicles for a home occupation.
Chairman Hays reviewed the definitions as presented in the staff report. Ms. Hughes
clarified the definitions for a hosted homestay and the provisions for allowing rentals with an
accessory use the code regulations. She then reviewed the definition for an un-hosted or
unoccupied whole house short-term rental.
Zoning Administrator, Kathryn Thurston reviewed the sizes of lots in the historic district,
and said due to the discrepancies in sizes, that some lots are considered grandfathered
nonconforming. She said there is not a minimum dimension for a single residence but for a
duplex the lot must have a minimum of 4,500 square feet. Commissioner Bowman was
concerned with nuisance enforcement and on-site monitoring. He noted that a dwelling unit
exists and they won’t increase as they already exist. He suggested that for regulating new
PH4-45
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permits, that could include the larger lot area and to address vacant lots that are buildable
through permitting.
Commissioner Mcguire suggested the city could regulate short-term rentals similar to the
regulations for downtown Bed and Breakfasts, and determine how many should be allowed per
block. Commissioner Bowman questioned how that monitoring would be determined.
Ms. Hughes reviewed the definition of short-term lodging as: Rental of an entire housing
unit that provides lodging for pay, for a maximum continuous period of 29 days, that does not
include serving food, and to which the definition of ‘family’ does not apply. This definition is
limited to lodging uses and excludes events and any other non-lodging uses. She explained
there could be a general consensus within the vetting process, through a percentage of
neighbors agreeing, which houses would allow short-term rentals with the issuance of a Special
Use Permit. That strategy was based upon the regulations in Portland, Oregon.
Commissioner Hovis had concerns with that approach. He explained why he disagreed
with polling the neighbors to regulate themselves. It would be over regulating. Commissioner
Bowman added that some people are doing this to pay their mortgage and maintain their home.
Commissioner McGuire believed that one short-term rental per block would alleviate
issues on a block. There was a discussion on the process of recommending regulations with
the citizen’s input and vetting the process before submitting to the City Council. Ms. Hughes
reviewed the definitions and conditions which were suggested in the ordinances from the
benchmark cities researched. Impacts to neighborhoods were discussed. Commissioner
McGuire said the business use would impact parking, noise, trash and safety in a residential
neighborhood.
Commissioner Bowman said we need a few rules that can be enforced but not a myriad
of rules and regulations to which the code then can’t be enforced. He said collecting taxes and
complying with the privilege license should be priority. Ms. Hughes reviewed the
commissioners concerns and she suggested she draft another proposal and utilize the software
to track the properties which are listed on the short-term rental platforms such as Airbnb, VRBO,
and Homeaway.
Chairman Hays believed the neighbors as a community should participate in the

process. She added if 75% of neighbors approve a listing, who is not the same owners, those
STRs could receive compliance and take into account the distances between properties. Ms.
Hughes felt more comfortable working with the Attorneys Office, to draft such regulations. Mr.
McGuire added that this was concerning whole house rentals without an owner supervising on-
site.
Ms. Thurston reviewed the ‘principal residence’ existing definition: The residence of a
person who: 1) uses as his/her voting address; 2) uses as the address on his/her driver license
and at least one other form of identification determined acceptable by the NHC Board of
Adjustment of Elections as proof of residence (including but not limited to a current utility bill,
bank statement, government check, paycheck, or other document) and 3) occupies the
residence for at least 183 days during a calendar year.
There was a lengthy discussion regarding the logistics of monitoring the STRs.
It was determined that the Planning Commission would schedule another special
meeting in order to receive public input on the topic. Attorney Everhart noted that the
Commission would formally waive rules for opening a discussion to the public and could set a
time limit for the public comment portion. Ms. Hughes will request the Commissioners via email
for available dates to hold the special meeting for public input.
Commissioner Hovis moved to adjourn the work session and the motion was seconded
by Commissioner Miller.
There being no further business the work session adjourned at 5:55 p.m. Please note this in not
a verbatim record of the proceedings.
Tamara Mercer
PH4-46
1
CITY OF WILMINGTON
Special work session
October 18, 2017
A special called work session of the Wilmington Planning Commission was held on October 18,
2017 at 4:00 p.m. in the City Council Chambers, City Hall Wilmington, North Carolina.

Mr. Bruce McGuire
Mr. Kemp Roberts
Mr. Jeff Hovis
Ms. Laura Miller
Mr. Bruce Bowman
Staff Present:
Glenn Harbeck, Director PDT
Ron Satterfield, Assist. Director PDT
Chairman Hays called the special work session meeting to order at 4:00 p.m.
1. SHORT TERM RENTALS/SHORT TERM LODGING: Open discussion and public

input meeting regarding short-term rentals. Christine Hughes, Senior Planner
910.341.5885 christine.hughes@wilmingtonnc.gov
Senior Planner, Christine Hughes noted that there were no revisions added to the staff
report since the continued work session of August 23. Ms. Hughes reviewed the definition of a
homestay, which is the rental of individual bedrooms within a dwelling unit that provides lodging
for pay, for a maximum continuous period of 29 days, that does not include serving food, and to
which the definition of ‘family’ does not apply.
The definition of short-term lodging or whole-house rental would be the ‘Rental of an

entire housing unit that provides lodging for pay, for a maximum continuous period of 29 days,
that does not include serving food, and to which the definition of ‘family’ does not apply. This
definition is limited to lodging uses and excludes events and any other non-lodging uses.
Ms. Hughes said staff proposes to strike and remove the definition of guest lodging and
to remove it as a permitted use to avoid conflicts to the proposed new uses. A housing unit is
defined as, (existing) one or more rooms together, constituting a separate, independent
housekeeping establishment for owner occupancy, or rental or lease and physically separated
from any other housing unit which may be in the same structure, and containing independent
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cooking and sleeping facilities for not more than one family.
The existing principal residence would remain as: The residence of a person who: 1)
uses as his/her voting address; 2) uses as the address on his/her driver license and at least on
their form of identification determined acceptable by the NHC Board of Adjustment of Elections
as proof of residence 3) occupies the residence for at least 183 days during a calendar year.
She noted the added language to the definition.
The proposed Homestay regulations by prescribed conditions, as a home occupation in

the R, HD, MF districts and by prescribed conditions in the same commercial districts where
hotel/motel is allowed would be for O&I, CB, RB, CBD, AI, MX, UMX, RFMU.
Within the residential districts a home occupation would be permitted as incidental to use
as a residence. Homestays would be permitted in single-family detached dwelling units or in
accessory apartments. An annual registration would be required. The registration number must
be posted with any advertisement. This must be the principal residence of the owner or
occupant. There must be proof of eligibility and this would be allowed as one per block or 650'
of separation. An inactive registration would be terminated. Homestays would be limited to
three guestrooms with a permanent resident residing on premises. No off-street parking is
required if it can be demonstrated that there is adequate on-street parking. No more than one
vehicle per guest bedroom and Ms. Hughes noted that no variance from the proposed
amendment from the Board of Adjustment would be allowed. Three code violations and /or
criminal convictions terminates the registration. All building code regulations must be in
compliance as the operator is responsible for compliance with federal, state and local
regulations. She added that the registration is not transferable.
Ms. Hughes reviewed the commercial district regulations for homestays which followed
the regulations as listed above. She then stated that for Short-term lodgings in Residential
Districts for single-family detached units and accessory apartments in all R, HD, and MF
districts would eligible to operate. An annual registration would be required. There must be proof
of eligibility. The registration number must be posted with any advertisement. This must be the
principal residence of the owner or occupant. There must be proof of eligibility. It is allowed as
one per block or 650 ' of seperation. An inactive registration would be terminated. Homestays
would be limited to three guestrooms with a permanent resident residing on premises. No off-
street parking is required if it can be demonstrated that there is adequate on-street parking. No
more than one vehicle per guest bedroom and Ms. Hughes noted that no variance from the
Board of Adjustment is allowed. Three code violations and /or criminal convictions terminates
the registration. All building code regulations must be in compliance as the operated is
responsible for compliance with federal, state and local regulations. She added that the
registration is not transferable.
The local operator is defined as living within 20 miles of the property. The Short-term
lodging registration must provide the name and contact information for the local operator. The
address and maximum number of occupants, days listed for trash collection shall be posted
along with the Wilmington Police Department non-emergency number. The annual registration
number must be posted and parties, events, and large gatherings are prohibited.
Ms. Hughes reviewed the proposed language for Short-term lodging in the Commercial
Districts which followed the previously listed restrictions as noted above. Ms. Hughes pointed
out that there would not be a separation requirement of one per block nor the 650’ of separation
between listings as noted in the residential districts.
Ms. Hughes reviewed the information provided from AirDNA which located the total
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active short-term rentals which are operating within the city limits. She cautioned that the data
may fluctuate in its accuracy. The data only addressed those found on Airbnb and did not
include all of the platforms such as Craigslist or VRBO or Homeaway. She pointed out the
rentals, revenue and active hosts by zip code on the charts and maps.
Commissioner Miller moved to waive the rules to allow for public comments and the
motion was seconded by Commissioner Bowman.
Chairman Hays opened up the public comment section of the work session.
Mr. Terry Bragg of 410 South Front Street was called to speak. Mr. Bragg said he was
the Director of the Battleship North Carolina and he was concerned with the unregulated rentals.
Mr. Bragg said visitors and travelers to Wilmington should be safe. He noted that hotels have
standards and he did not know the quality of untrained hosts and unregulated houses. His
concerns were regarding risk management, inspections, lighting, predators, illegal businesses,
background checks, personal risk, and safety in the community. Mr. Bragg was opposed to the
short-term rentals.
Mr. Michael Smith of 211 South 2nd Street was called to speak and he said he was
speaking in opposition to short-term rentals. Mr. Smith was concerned with the commercialized
neighborhoods and the integrity of neighborhood. He was concerned with on-street parking and
problems in Historic District. He said residents don’t have on street parking. The residential
parking program is not 24/7 and he said the residents have to enforce the code.
Mr. Gene Merritt of 3 Queen Street was called to speak. Mr. Merritt reviewed his
developments and said he promoted historic preservation in the Historic Districts. He reviewed
his history living in the area. He was opposed to the short-term rentals. Mr. Merritt said the
success of his investments and building projects depends on the support by full time residents.
Mr. Merritt believed the short-term rentals should be highly regulated.
Mr. Michael McGinty of 313 Ann Street was called to speak. Mr. McGinty was opposed
to the short-term rentals and he reviewed the history of them in New Orleans. He said the STRs
are destructive to homeowners and are operating illegally.
Mr. Chockey Kassum of 420 Kaywoody Court was called to speak. Mr. Kassum was in
favor of short-term rentals as he has operated two since 2004. He said tourists spend money in
Wilmington. Mr. Kassum was confused with the proposed regulations. He did not think there
were major incidents so he questioned how he can operate his short-term rentals.
Ms. Jennifer Moranne of 221 North 7th Street was called to speak she said a military
person bought the house next door, and they rent it out for parties. Ms. Moranne was concerned
with noise as she has called the police. She was concerned with parking, as cars have parked
in her neighbors’ driveway. She lives with a nightmare and she asked the Commission to pass
the proposed ordinance. She is against an unsupervised STR but would be in favor of a hosted
(supervised) rental.
Ms. Susan Bondront of 2105 Plaza Drive was called to speak and she explained her
neighbor restored a garage apartment and that they were not selective of renters. The garage
apartment destroyed her privacy. They should put up a screen. Ms. Bondront said short-term
rentals should be allowed in commercial districts only.
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Mr. Bob Wallen of 302 Jeb Stuart Drive was called to speak. Mr. Wallen read a letter
and the Realtor code of ethics. Mr. Wallen said that short-term rentals are a material fact and is
an unpermitted use in residential neighborhoods.
Ms. Phoebe Bragg of 410 South Front Street was called to speak. Ms. Bragg only
supports whole house STRs in business/commercial districts. Ms. Bragg was concerned with
protecting her home investment. She was concerned with drugs, prostitution and murder.
There is no inspections or licensure and believes in regulations.
Mr. Don Britt of 401 South Front Street was called to speak. Mr. Britt was opposed to
unregulated STRs as they are illegal businesses in the historic districts.
Mr. Joe Pawlik of 302 South 2nd Street was called to speak. Mr. Pawlik is adamantly
opposed to hotels operating as a business out of single family homes. Mr. Pawlik reviewed the
history of downtown where two houses were turned into whole house rentals by his residence.
He said wedding groups are the worst. He was concerned with noise and parking from STRs.
Ms. Elizabeth Wright of 512 South 2nd Street was called to speak. Ms. Wright was
opposed to VRBOs as there is a loss of community. Families have a connection but with short-
term rentals there is parties and drinking.
Mr. Travis Gilbert of 104 South 4th Street was called to speak. Mr. Gilbert is the
manager of the Lower Cape Fear Historical Society and he works with out of town guests. Mr.
Gilbert said guests come to the historic district for experience and connection. He explained the
downtown short-term rentals in the downtown grid. He spoke of the French Quarter in New
Orleans. Mr. Gilbert is against STRs in the historic districts.
Mr. Denis McGarry of 326 South 3rd Street was called to speak. Mr. McGarry said whole
rental investments ruin and erode neighborhoods. He was concerned with them downtown and
the growing segment of STRs are for a whole house rental. The whole house rentals are owned
by investors and are operated by a leasing agent. He reviewed statistics throughout the United
States from other cities. Mr. McGarry is against these rentals in residential districts.
Ms. Susan Francy of 1919 Pender Avenue was called to speak. Ms. Francy said she
lives in her home and rents her space out on Airbnb. She noted it is important to have an
ordinance limiting and regulating rentals. She gave examples of operations which were
disruptive. Ms. Francy asked for an ordinance that allows a priority registration for owners who
live in North Carolina.
Ms. Ginger Gerrard of 108 Nun Street was called to speak. Ms. Gerrard read a letter
from her neighbor in the HD-R who could not be present. Some comments in the letter stated
that in New Orleans, Airbnbs are not allowed. Due to the STRs, people can’t afford to live there.
She was concerned that with absent investors, people cannot afford to live in Wilmington.
Ms. Barbara McKenzie of 215 Ann Street was called to speak. Ms. McKenzie read a
neighbor’s letter who could not be present. The comments were against short-term rentals in
residential districts. Ms. McKenzie reviewed Venice, Ca. statistics. She said it is no longer a
reasonable place to live with 12 -15% of the Venice population homeless. Ms. McKenzie is
opposed to STRs in Wilmington as they decrease affordable housing, there is no accountable
oversight as they don’t follow the laws.
Mr. George Edwards, Executive Director of the Historic Wilmington Foundation 2011
Market Street was called to speak. As the board’s representative he spoke in opposition to
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short-term rentals in the historic neighborhoods. Mr. Edwards reviewed the benefits of the
National Register Historic Districts as it protects our architectural historic resources and
strengthens neighborhoods. He reviewed the tax values in zoning districts and the reasons for
standard regulations which create stability. A residential neighborhood does not want a
business in their district and is therefore opposed to allowing them in residential.
Mr. Tyler Newman representative for B.A.S.E. (Business Alliance for a Sound Economy)
was called to speak. Mr. Newman said he advocates for businesses and said this is a complex
property rights issue, and there are unanswered questions regarding the law and the Vacation
Rental Act. He said that there has not been input from the School of Government, the General
Assembly, or the NC Real Estate Commission, so there is a policy challenge and the path is
unclear. He noted the complaints he heard were more about the behavior of the rental
occupants. The issue is one of enforcement of noise, trash and traffic parking and he
suggested crafting new language for the existing ordinance to address this until the new Land
Development Code is rewritten for the Create Wilmington Comprehensive Plan.
Mr. Dave Billito of 415 South Front Street was called to speak. Mr. Billito categorized
the residents in opposition to the short-term rentals saying the residents against the STRs are
from downtown and he believed the issue is not about downtown. Mr. Billito spoke about
perceived fear and was in favor of the STRs in the city overall. He asked about the difference
between residential and asked what is commercial as a home can have a long term or short-
term guest living in it. The nature of residential is changing as people travel and staying with
strangers is non-traditional. People want to be in Wilmington. Mr. Billito questioned the study
data and property rights.
Mr. Richard White of 200 Tennessee Avenue was called to speak. Mr. White is
investing a half million in downtown Wilmington for his tenants. He explained the market for
rentals and said people are staying with others just like a bed and breakfast. He did not believe
short-term rentals are responsible for the housing shortage. Short-term home owners are able
to live in their homes and need the extra money to rehab their houses. Mr. White is for allowing
short-term rentals and disagreed that crimes occur at a STR and he agreed that if there were
violations at an STR then the registration should be revoked by the city. He agreed with the
proposed regulations.
Mr. Mike Thompson of 2204 Brandon Road was called to speak. Mr. Thompson agreed
with Mr. Newman, Mr. Bilitto and Mr. White. He embraces the new technology. New
technology makes Uber available so he embraces Airbnb and VRBO software. He agreed with
planning for this new technology.
Mr. Terry Espy of 103 South Front Street was called to speak. Ms. Espy represented
the Downtown Business Alliance and she is a commercial real estate broker. She said her
organization surveyed the downtown district and they cautioned that restricting whole house
rentals will negatively impact restaurants and downtown businesses. She said many families
want a whole house rental. The DBA wants a compromise to benefit downtown and they should
not be completely restricted. Ms. Espy reviewed her history as an historic property investment
owner of both a short-term rental and a long term rental. With a long term rental there is no
access to the property, no rents were collected for months and after gaining access to the
property it was damaged. She described her business issues with changing the rental to a
short-term rental. There have been no problems the short-term rental is positive.
Mr. Harry Smith of 402 North 7th Street was called to speak. Mr. Smith said he spent
200K to renovate a house in the historic district. He reviewed his surrounding area in his
neighborhood. He said the long term renters do not mow the lawn. His STR must mowed every
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week. He stated were piles of trash have been abandoned on the street from renters across the
street from him. He said there are no restrictions or responsibilities for the long term rentals.
Mr. Smith is in favor of STR as he can afford to live there because of the short-term rental.
Mr. Tom Harris of 319 South Front Street was called to speak. Mr. Harris reflected on
the character of the neighborhoods. He said he does not see wild parties. He questioned the
four speakers who spoke of the three addresses on Ann Street. He discussed how the websites
for STRs worked and the proposed regulations could proceed. Mr. Harris was in favor of
allowing short-term rentals. The city can track any problems with STRs and rescind the owners’
registration.
Ms. Sylvia Kochler 502 South Front Street was called to speak. Ms. Kochler is a
business attorney and she reviewed her history of serving with ROW, Vision 2020, and WDI.
Ms. Kochler has attended every work session on the STR topic and she said harmful
unintended consequences can occur from bad zoning decisions. The proposed regulations
include unlimited short-term rentals in commercial and mixed use districts and the proposed
regulations limit short-term rentals to 1 (one) per block in residential districts. She said the staff
proposal is a good start and she requested short-term rentals to be strictly limited in the HD-R
as did Mr. Edwards. She added one off-street parking space should be required in the HD-R.
Most cities prohibit STRs in residential neighborhoods for fewer than 30 days. Ms. Kochler listed
the cities which ban short-term rentals.
Ms. Sara Sabliski of 317 Kenwood Avenue was called to speak. Ms. Sabliski was in
favor of short-term as she is a short-term rental owner, she used to rent to roommates. She
presented facts regarding STRs from the city of Raleigh. Ms. Sabliski was in favor of STRs.
Ms. Kaki Pearson of 407 South 2nd Street was called to speak. Ms. Pearson is an STR
owner, and the guests are happy with up-to-date photos of the structure and she receives
satisfied reviews guests. The guests are families and they have no issues paying 13% taxes.
Ms. Pearson said in the same block there are long term rentals and there is no up-keep around
those houses. It would not be possible for her to be a homeowner without the STR. Ms.
Pearson is in favor of STRs and smart regulations.
Mr. Hunter Ford of owner of the surf shop on North Front Street was called to speak. He
owns four businesses and he reviewed his investments. Mr. Ford is in favor STRs as hotels are
not affordable or convenient for families. Mr. Ford said employees don’t have access to parking
in the downtown and that adds to the parking issues downtown.
Ms. Rachel de Fart of 1916 Wolcott Street was called to speak. Ms. De Fart is a realtor
and is in favor of short-term rentals. She works with families and they now live in these
neighborhoods. She reviewed her business and said she is concerned with her clients who
need flexibility to rent.
Mr. Jeff Williams of 3425 Chalmers Drive was called to speak. Mr. Williams is in favor of
STRs. He said he uses STRs and is thinking about trying to operate an STR for the income.
Mr. Ned Irvine of 109 Church Street was called to speak. He said it is important to
preserve the historic downtown. He operates a STR. He pays taxes on it and the income has
been wonderful. Short-term rentals should be regulated not prohibited.
An unnamed person submitted some materials on STRs.
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Mr. Michael Lardreri of 406 North 5th Avenue was called to speak. Mr. Lardreri travels
and said he owns long term rentals. He explained how VRBOs operate in Europe and the
economic effect on the communities are long-lasting. He added the economy is cyclical. The
STRs maintain the character of neighborhoods as houses are fixed up. Mr. Lardreri was in
favor of STRs.
Ms. MaryAnn Keiser of 215 North 6th Street was called to speak. Ms. Keiser was
concerned with short-term rentals as she restores historic houses and owns long term rentals.
She was concerned with parking issues and said one per block seems reasonable.
All those given an opportunity to speak, Chairman Hays closed the public comment
section of the meeting.
Commissioner Hovis was concerned with enforcement of regulations by staff. To which

Commissioner Bowman agreed and he added he struggled with the difference between a short-
term rental and a long-term rental. On-site supervision is supervised by the home-owner and he
was concerned with unfair regulations.
Commissioner Miller noted all the discussion and public input thus far in the process of
focusing on short-term rentals.
Commissioner Bowman was uncomfortable with the one per block rule when there is on-
site supervision.
Commissioner Hovis noted the impacts to the downtown area was receiving most of the
concern by the public. He said the decision was difficult as we cannot regulate only one area
vs. the entire community in all fairness. The current regulation has a 7 day minimum stay so
therefore all operations are illegal so he disagreed with the minimum and the maximum should
be regulated. In the Central Business District hotels are allowed therefore there doesn’t need to
be added discussion for the CBD. He suggested they focus on the residential impacts in
Wilmington and how to strike a balance.
There was a consensus that the Commission was comfortable with the CBD regulations.
Ms. Hughes said Main Street Mixed Use does not include residential and currently the zoning
does not permit ‘hotels/motels’. She pointed out that for short-term lodging by prescribed
conditions in the commercial districts where hotels/motels are allowed in O&I, CB, RB, CBD, AI,
MX, UMX, and RFMU. Commissioner Bowman disagreed and suggested that Main Street
Mixed Use should be added to the list of commercial districts to allow STRs to which
Commissioner McGuire agreed as well.
Attorney Schaefer pointed out the Commission is guiding the staff into the direction
which has been vetted thru the process.
Commissioner Bowman noted that the issue can be handled as nuisance or complaint
based and reported to staff. Police, code enforcement or criminal violations address the issues
discussed and Ms. Hughes said there are about 50 cases of violations of those properties who
are not compliant with the minimum 7 day-stay. The noise and on-street parking violations and
disorderly behavior are handled by the police. The minimum housing code, junk vehicle and
animal complaints are addressed by code enforcement. Ms. Hughes noted that without a
registration process for short-term rentals it is difficult to tie the violations or complaints STRs.
After a short recess and further discussion about the process, it was determined the item
was placed on the December meeting agenda.
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Commissioner Hovis moved to adjourn the meeting and the motion was seconded by
Vice-Chairman Collier.
There being no further business the meeting adjourned at 7:11 p.m.

The next scheduled regular Planning Commission meeting is Wednesday, November 1, 2017.
Please note the minutes are not a verbatim record of the proceedings.
Tamara Mercer
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CITY OF WILMINGTON
December 6, 2017
A regular meeting of the Wilmington Planning Commission was held on December 6, 2017 at
6:00 p.m. in the City Council Chambers, City Hall Wilmington, North Carolina.

Mr. Bruce McGuire
Mr. Kemp Roberts
Mr. Jeff Hovis
Ms. Laura Miller
Mr. Bruce Bowman
Staff Present:
Brian Chambers, Senior Planner
Jeff Walton, Associate Planner
Eryn Futral, Associate Planner
Chairman Hays called the meeting to order at 6:00 p.m. and after the Pledge of
Allegiance, Chairman Hays read the procedure and appeals statement.
Approval of Minutes
Commissioner Hovis moved to approve the November 1, 2017 meeting minutes and the
motion was seconded by Vice-Chairman Collier.
6. Land Development Code Amendment: Amend City Code Chapter 18 to add

“whole-house lodging” and “homestay lodging” as uses permitted with
prescribed conditions, delete “guest lodging” as a use, to add, revise, or delete
several definitions, and to delete references to “guest lodging” throughout the
code. Christine Hughes, Sr. Planner (LDC-1-717)
Senior Planner, Christine Hughes reviewed the amendment and said the Planning
Commission held work sessions on this matter in June, July, August and October and the draft
that was presented is representative of the public input discussions and includes researched
best practices.
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Ms. Hughes noted that the City is unsure of the exact number of short‑term rentals in
the city but it is estimated there to be between 400 and 500 active homestay and whole house
rentals within the city. She reviewed the staff report wherein Staff is proposing to add three
definitions: the first is whole house lodging type 1, this would be the rental of an entire dwelling
unit for a period of 29 days or less, while the permanent resident is away from the home or one
unit within a duplex, triplex or quadraplexes where the permanent resident lives in one of the
units or rents out for short‑term one of the other units.
The second definition is type 2 whole house lodging and this would be the rental of an
entire dwelling unit where there is no principal resident resigning residing on the premise, for a
period not to exceed 29 days and neither definitions would include the serving of food. The third
definition proposed is homestay which would be the rental of individual bedrooms within a
dwelling unit, it serves as the principal resident or renting rooms while the principal resident is
there on the premise. Ms. Hughes clarified the definition of a principal residence and said the
proposed change would align with the New Hanover County Board of Elections determination
for principal residence. She added the definition would be modified to strike the weekly or longer
term of stay.
Ms. Hughes pointed out the proposed language would make changes in all of the
districts for homestay type 1 and type 2 house lodging. Throughout the presentation those
standards would be consistent among all three types of lodging and in all zoning districts.
She reviewed the annual registration procedure and said that would come with a
registration number that would be required to be posted with any advertisement: Three code or
criminal violations would revoke the renewal for a period of three years; Required compliance
with federal, state and local code, and include liability insurance; No food service or cooking in
individual bedrooms; Each unit would be required to post the name and number of the operator,
address of the lodging, maximum number of occupants; An annual registration number posted;
The operator would be required to ensure that trash is properly stored and the carts rolled in
and out on the assigned day. Ms. Hughes noted that those would carry through all of the
districts and all of the use types, and lodging types.
She then narrated how these uses are proposed to be permitted, starting with homestay
lodging in residential districts. Staff proposes to add it to the R‑20, R‑15, R‑10, R‑7, R‑5, R‑3,
multi‑family, and HDR districts. Homestay lodging would be permitted in single-family zoning
districts including all of the residential districts and multi‑family districts. Again it would be the
dwelling unit that serves as the principal residents of the host. If you have a long‑term tenant
that person could act as the host and it would not include a bed and breakfast establishment.
An active registration would not expire though it would have to be renewed annually. The
maximum number of guest rooms would be one fewer than the total number of bedrooms but no
more than three. And no more than three motor vehicles owned or operated by patrons could be
parked on the site at any time.
Ms. Hughes reviewed the definition of whole house lodging, in the residential districts
which it is the R‑20, R‑15, R‑10, R‑7, R‑5, R‑3, multi‑family, and HDR districts. Type 1 would
be permitted in single-family detached dwelling units, duplex, triplex and quadraplex units.
In the attached units only one unit would be permitted for whole house lodging per parcel or if
there was an accessory dwelling unit. In type 2, whole house lodging would be permitted in
single-family detached and multi‑family dwelling units.
Ms. Hughes noted the separation requirement proposed would be 400 feet within the
1945 corporate limits and 650 feet outside of the corporate limits. In the 1945 corporate limits,
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the separation would be measured from the parcel lines and if it were a multi‑family
development, that distance will be measured from the parent parcel lines. She said this would
require a local operator within 20 miles of the property and a maximum of three guest rooms.
Both type 1 and type 2 would require annual registration. Registration would be limed to
a maximum of one person in residential districts. Active registrations would not expire but would
need to be renewed annually. Registrations not renewed would be considered terminated by
the property owner and only one registration would be issued per property for either type 1, type
2 or a bed and breakfast. She added there could not be more than one on an individual parcel
and for type 1 and type 2 whole house lodging one off‑street parking space per rented bedroom
would be required. So if you had three bedrooms you would have to have three off‑street
parking spaces. In the historic districts no curb cuts would be permitted to accommodate that
parking. The parking may be provided off‑site with proper approval. Registration would be
revoked if the parking could not be provided. The registration would terminate if the use was
discontinued for 180 days or if the registration was not renewed by the appropriate owner or the
property was transferred.
Ms. Hughes said that summarized the whole house and home stay lodging in the
residential districts. In the special use permit mixed use districts whole house and homestay
lodging would be added in the O&I -1, O&I -2, CB, RB, CBD, Airport Industrial, Riverfront Mixed
Use and Main Street Mixed Use and IMX Districts.
Ms. Hughes pointed out this proposal would eliminate ‘guest lodging’ as a use in the
code to delete the entire prescribed condition section for guest lodging, to delete the definition
and delete specific references to the guest lodging in the code where it appears in other
sections as well as in the parking schedule.
In response to Commissioner Bowman’s question, Ms. Hughes clarified how the

separation requirements of 400 feet and 650 feet would be measured from property lines. The
1945 Corporate Limits were defined on the map. Ms. Hughes clarified the CBD and HD-O
(Historic District Overlay) zoning as separate zoning districts. The definition of a transient
boarding house was explained as five or more unrelated persons living in a house. Building
code inspections and sprinkler systems were addressed.
In response to Commissioner McGuire’s question regarding the definition of a principle

residence, Ms. Hughes said it is where you occupy/live in a residence that is for at least 183
days during the year which is a person’s voting address, so that would be the standard we
would use in issuing that registration. Registration is restricted to one property per one person
per year.
Chairman Hays opened the public hearing and explained the next procedures to the
public.
Mr. Terry Bragg of 410 South Front Street, Executive Director of the Battleship North
Carolina, said he represents the travel and tourist industry. He said he has an obligation to keep
visitors safe. As the manager of the battleship, it meets all federal state and local inspections
and safety requirements. Professionally managed hotels with over a thousand hotel rooms,
contains the inventory to meet occupancy and the tourist market. Short-term rentals are
operated by untrained individuals, and this is putting our visitors and travel industry at risk. Mr.
Bragg welcomes short-term rentals operated in the Mixed-use Commercial, the Central
Business District or at the beaches but he does not support short-term rentals or whole house
rentals in his neighborhood.
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Mr. Bragg does not support the delays coming from the planning process as it is
jeopardizing its mission to keep visitors safe. As a community we have an ever-growing number
of unregulated and uninspected illegal short-term rentals.
Mr. Gene Merritt of 3 Queen Street said short-term rentals are potentially destroying the
integrity of single-family residential zoning downtown area and the entire city. Mr. Blair was
concerned with the sustainability of our growing convention center industry and in the city of
Wilmington neighborhoods. They only belong where businesses are permitted. They should be
highly regulated and they should pay occupancy taxes. They are currently operating illegally.
The zoning ordinance exists in an effort to provide quality of life for various uses on both
residential and commercial districts. Mr. Merritt does not agree with them.
Mr. Sean Dougherty of 807 North 5th Avenue said every homeowner is required to carry
insurance and it is covered thru their liability policy. He said taxes are automatically paid and
deducted when someone books through Airbnb or VRBO. Mr. Doherty is a member of the
Wilmington Historic Foundation and has renovated 15 historic homes downtown. He is not in
favor of 650 foot separation requirement because it abolishes short-term rentals completely. On
the north side 650 feet or 400 feet would only be two houses in the entire area. He suggested
there should be a task force to address this difficult issue and it should not be rushed.
He was confused with the parking requirements for one-bedroom. Mr. Dougherty has a
33’ x 100’ lot and he wanted to know if the two spaces in front of his house did not count
towards the three space requirement. He recommended that there should be a five-bedroom
maximum per linear block on street with the parking requirement the same as long-term parking.
There should be no difference between long-term rentals and short-term rentals. He said the
duplex in front of him which is basically two houses, has nine cars and the long-term rental
adjacent to him has five cars parked there. He said there is no difference between short and
long-term rentals. Mr. Doherty agreed with requiring short-term rentals be registered.
Ms. Celeste Smith of 211 South 2nd Street was concerned that short-term rentals
reduce the availability of affordable housing. Ms. Smith said investors purchase residential
houses and turn homes into vacation rentals for tourists. Is because there is more money as a
short-term rental use. Ms. Smith was concerned as there is a shortage of existing affordable
housing. Teachers, nurses, firefighters, the elderly, and young people starting out are hurt by
this economy. Ms. Smith discussed the economy in Sonoma County California, Charleston and
Asheville which strictly prohibit short-term rentals in residential districts. Ms. Smith was not in
favor of short-term rentals.
Mr. Bob Wallen of 302 Jeb Stuart Drive and a Realtor, said an STR must be disclosed
and as a Realtor, they are bound by a code of ethics, fair housing guidelines and disclosure of
material facts. Material facts must be conveyed to clients that may impact the value of the
property. Mr. Wallen consulted with a local appraiser who claims that he would have to deduct
value from a property adjacent to a short‑term rental in a residential district. Upon contacting
the legal department of the North Carolina Real Estate Commission, it was confirmed that an
adjacent short‑term rental would be considered as a material fact and must be disclosed to a
potential buyer. Mr. Wallen asked for a list of registered short‑term rentals where realtors could
access the addresses and this would at least help us to confirm to our buyers and sellers that
the value of their property has been diminished by the ongoing illegal activity of their neighbor.
Mr. Michael McGinty of 313 Ann Street discussed New Orleans and the impact of STRs
and the decrease in real estate property values. Mr. McGinty was opposed to short-term
rentals.
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Ms. Karen Morn Germ of 106 and 110 Ann Street said that she owns two short-term
rentals. Mostly they are utilized by people who want to relocate to the Wilmington community.
Her renters are usually people in their 60s or 70s looking to enjoy this beautiful historic city, stay
for a week and decide to relocate here. They maintain their properties and carry a million-dollar
liability policy on both of them pay their taxes and are in favor of short-term rentals.
Mr. Phil Gates of 20 South 8th Street operates an STR and was in favor of STRs and
requiring the registration and regulation. Mr. Gates was concerned with the density regulations
and said they have plenty of parking. Mr. Gates was concerned with the distance requirement
because it creates arbitrary winners and losers and he disagreed with that enforcement.
Mr. George Edwards, Executive Director of The Historic Wilmington Foundation at 2011
Market Street and spoke on behalf of the board of trustees. Mr. Edwards said they oppose
short-term rentals in the historic districts. He said the districts are comprised of Brookwood,
Carolina Heights, Carolina Place, Sunset Park, Ardmore and the Historic Downtown where
there are more than 6000 buildings included in the National Register. Wilmington has been the
beneficiary of strong preservation movement and enforcing and strengthening residential zoning
protections in the land-use development code allows Wilmington to foster as a beautiful vibrant
city. Mr. Edwards was against short-term rentals in historic districts and wanted to preserve
Wilmington as a desirable place to live and raise a family, and historic districts contribute
significantly to property values, property tax base, and attracts tourism.
The weakening of residential zoning regulations in historic neighborhoods over time

would result in a reversal of the preservation gains that we've seen. Currently we are seeing a
trend towards younger families, younger professionals, and people with children moving to our
historic districts. We need to protect that movement going forwards. The City Council has
recognized over time that to protect this residential character you have to have certain zoning
decisions in place that present encroachments into our neighborhood, with the proliferation of
bed and breakfasts, so we're urging you to take the same approach by preventing short‑term
rental businesses in historic neighborhoods. This policy is consistent with our past standards on
zoning.
Ms. Phoebe Bragg of 410 South Front Street said she only supported whole house
short-term rentals in the business or mixed use districts and then they must be regulated and
inspected to ensure health, safety and the comfort of guests. Ms. Bragg believes in zoning laws
that protect the residential property owner’s rights and there should not be a business next to
residential. Ms. Bragg submitted a BBC news article where there are brothels occupying
Airbnb’s in London. She is opposed to short term rentals.
Ms. Christine Beck of 5618 Greenville Loop Road has had long term renters who were
the worst tenants. Ms. Beck explained her problems with long-term rentals. There is no access
to the property when you rent long-term. Ms. Beck is in favor of short term rentals.
Mr. Tom Harris of 319 South Front Street stated that there are according to the staff 400
short-term rentals in Wilmington that have been here for a while or at least for two years and he
asked where was the data which showed what problems they are causing. The allegations go
from noise complaints to murder and prostitution to affordable housing issues and Mr. Harris
asked staff for that data. Mr. Harris disagreed with the spacing requirement between short-term
rentals. He believed the distance separation and the parking requirements were erroneous. He
asked where one would find a house downtown which would rent a bedroom for $500-$650 a
month. He believed the facts don’t support that short term rentals are creating the housing
problem and he asked for the facts and data which supported the problems that short term
PH4-59
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rentals create. Mr. Harris said he was concerned with the spacing requirement as someone will
get lucky and get the permit while other people are not going to be lucky.
Mr. David Hendrickson of 213 Castle Street was concerned that there is not enough
parking spaces and that his neighborhood should remain a residential neighborhood without
people coming and going. He did not want wedding parties staying in his neighborhood.
Ms. Rebecca Kelley with Turnkey Vacation Rentals said she is a hospitality property
manager for Airbnb, VRBO and other technology enabled full service property management
company. Ms. Kelley explained her security procedures and noise abatement for decibel
monitoring in the home. She was in favor of short-term rentals and the registration process.
Mr. Joe Powlick of 302 South 2nd Street was against short-term rentals as they will
replace long-term neighbors with transient hotel stays and increase crime. Use adamantly
opposed to the hotel business is operating from single-family homes and residential districts and
he did not support staffs recommendation of the regulations.
Ms. Jennifer Moran of 221 South 7th Street said she was opposed to short-term rentals
as they have disrupted her residential neighborhood.
Mr. David Fisher of 310 Greenfield Street reviewed his history of using Uber and renting
out a short term rental and said he is in favor of STRs.
Ms. Susan Bondurant of 2105 Plaza Drive is opposed to STRs and she was concerned
with how the illegal short term rentals were contributing to the neighborhood. Ms. Bondurant
reviewed her history of living in her neighborhood and said she did not want to short-term rental
adjacent to her.
Mr. Travis Gilbert of 104 South 4th Street agreed with Mr. Edwards’ points and said he
was against the proposals as STR’s are a detriment to the historic districts. Mr. Gilbert was
concerned with preserving the character of the downtown street grid and with parking
requirements. Mr. Gilbert agreed with the separation requirements due to the dense nature of
downtown.
Mr. David Billito of 415 South Front Street noted that he owns short term rentals and
long term rentals. Mr. Billito said the proposed amendment to the ordinance has conflicting
language which contradicts the State Statute for individuals and corporations. He disagreed with
20 mile restriction for ownership of the property as it does not account for life events, disability,
or protected class issues. He said it is not a commercial use if he changes his house from a
short-term rental to long-term rental it is still a residential use the issue was just a length of time.
He was concerned with the infringement on property rights with the proposed ordinance.
Mr. Michael Smith of 211 South 2nd Street reviewed his history of living in his
neighborhood. Mr. Smith was concerned with the commercialization of residential
neighborhoods and off-street parking issues in the HDR. Mr. Smith explained the problems with
parking in his area. He was against short-term rentals.
Mr. Harry Smith of 402 North 7th Street was in favor of short-term rentals. Mr. Smith said
he is renovated a property that was almost going to be condemned. He invested over $200,000
in the house. Because of short-term rentals is been able to afford renovating historic homes.
Mr. Denise McGary of 326 South 3rd Street was opposed to STRs and asked to prohibit
whole house short‑term rentals in the downtown resident area now and the future.
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Ms. Pennie Coussit of 1120 Sheryl Lane said she owns property at 118 Dock Street, and
she said that she works in the film business and owns rentals units in the city which are long
term. Ms. Coussit was advised to form an LLC and she wondered why she would have to get
registered as a person and not her LLC. She agrees to the registration for safety and
inspections but wondered how the new requirements would affect her condos in the district with
the distance requirement. She was concerned some of the restrictions would destroy short-term
rentals in Wilmington.
Ms. Ginger Gerard of 108 Nun Street said she opposes STRs in residential and she
shared examples of fines in Venice California.
Mr. Patrick Mills of 316 Red Cross Street said he owns property on the northside and he
is in favor of short-term rentals as this money has helped him re-invest in other projects in the
city.
Mr. Tony Kirkegard of 20 South 5th Avenue said he was opposed to short-term rentals as
they will ruin the social fabric of the community.
Ms. Sylvia Kochler of 502 South Front Street said she was opposed to whole house
rentals in residential neighborhoods. She said voters citywide do not want short-term rentals in
their residential neighborhoods and they want short-term rentals regulated. They can be
permitted in business districts and in mixed-use districts.
All those given an opportunity to speak, Chairman Hays closed the public hearing.
Ms. Hughes wanted to clarify where there was misstatements regarding the proposal.
She said, as proposed, there is no separation requirement proposed in the commercial and
mixed use districts, only between the type 1 and type 2 whole house lodging. There was a
question as to whether you could rent for what would be considered a long‑term period and
there is nothing that would prohibit a long‑term rental, the holding of a registration for a short‑
term rental would not prohibit use of the property as a long‑term rental.
Ms. Hughes acknowledged that the data as presented is limited as there are answers
and research which support both or all sides of the issue. The data shows where the Airbnb’s
are located. In terms of noise violations, the research states that there were approximately 20
noise violations with short term rentals since 2013 and all but one was located in the CBD.
There was a lengthy discussion regarding the input from the staff and the citizens.
Commissioner Hovis moved to continue the case no. (LDC-1-717) for a Land
Development Code Amendment to amend City Code Chapter 18 to add “whole-house lodging”
and “homestay lodging” as uses permitted with prescribed conditions, delete “guest lodging” as
a use, to add, revise, or delete several definitions, and to delete references to “guest lodging”
throughout the code which was continued to the January 3, 2018 Planning Commission meeting
at 4:00 p.m. and the motion was seconded by Commissioner McGuire.
7. Items from the Commission
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It was announced that election of officers would be placed on the February agenda.
8. Items from the staff- 2018 Planning Commission meeting calendar
Commissioner Hovis moved to approve the 2018 Planning Commission meeting

calendar with the dates as listed and the motion was seconded by Commissioner Bowman.
Commissioner Laura Miller had submitted her resignation due to other pressing duties.
Laura Millers tenure on the Commission was acknowledged for all her diligent hard work and
service to the community.
Commissioner Miller moved to adjourn the meeting and the motion was seconded by
Commissioner Hovis.
There being no further business the meeting adjourned at 12:10 a.m. December 13, 2017. The
next scheduled regular Planning Commission meeting is Wednesday, January 3, 2018.
Tamara Mercer
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1
CITY OF WILMINGTON
January 29, 2018
RESCHEDULED MEETING
DUE TO INCLEMENT WEATHER
A rescheduled meeting of the Wilmington Planning Commission was held on January 29, 2018
at 6:00 p.m. in the City Council Chambers, City Hall Wilmington, North Carolina.

Chairman Deb Hays Open Vacancy
Mr. Bruce McGuire
Mr. Kemp Roberts
Mr. Jeff Hovis
Mr. Bruce Bowman
Staff Present:
Brian Chambers, Senior Planner
Megan Crowe, Associate Planner
Megan Upchurch, Associate Planner
Gilbert Combs, Associate Planner
Nicole Smith, Associate Planner
Chairman Hays called the meeting to order at 6:00 p.m. and after the Pledge of
Allegiance, Chairman Hays read the procedure and appeals statement.
OLD BUSINESS
1. Land Development Code Amendment: Amend City Code Chapter 18 to add

"whole-house lodging" and "homestay lodging" as uses permitted with
prescribed conditions, delete "guest lodging" as a use, to add, revise, or delete
several definitions, and to delete references to "guest lodging" throughout the
code. Christine Hughes, Sr. Planner (LDC-1-717) CONTINUED agenda item from
12-06-2017
Senior Planner, Christine Hughes reviewed the request and noted that at the last
meeting on December 6th there was general agreement among the Commissioners on the
issue of home stays being allowed in residential and commercial districts requiring registration
for all short term lodging. There was general agreement that for the rule that ‘three strikes and
you're out’ for code and criminal violations and whole house lodging would be allowed in the
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commercial and mixed use districts.
Ms. Hughes noted that where there did not seem to be a consensus was the definitions
of whole house lodging. She said there are two directions or possibilities to go, either to keep
whole house lodging type 1 and type 2 as they are, or to consolidate those in some way into a
single definition.
Ms. Hughes said while there was some agreement that density should be limited for
whole house lodging in residential districts, how that happens wasn't clear. The city could keep
the 400’ and the 650’ separation requirement. We could eliminate the separation requirement
entirely, or eliminate the one per person registration restriction. Alternatively we could ban
whole house rentals entirely, allowing them only in commercial and mixed use districts and
prohibiting them in single-family and multi-family districts.
She said there was some disagreement on the proposed parking requirements of one
space per one bedroom. The city could require off street parking, keep it the same, we could
eliminate the parking requirement altogether, the off street parking requirement altogether, or
reduce the number of required parking spaces. Type 1 whole house rental is classified as
minimal supervision, where an owner lives on one side of a duplex and is renting the other side.
Type 2 is where there is no permanent owner/resident in the home and it is just a full-time short
term rental.
Ms. Hughes concluded with presenting a map showing the known Airbnb addresses for
reference and said those are the issues on which the Commission did not seem to have an
agreement regarding the proposal.
In response to Commissioner McGuire’s question regarding the reason for the 400 foot
separation in the 1945 corporate limits rather than 650 foot throughout the entire city, Ms.
Hughes replied that the 1945 corporate limits is a much denser area of development. There is a
block structure which does help move traffic throughout so there is a little bit of cushion there in
terms of having that multiple ways in and out of a place, but we do give a lot of allowances for
other things in the 1945 corporate limits, such as reduction in setbacks. She added some of the
development requirements are a little bit different because it's a different development pattern.
In response to Commissioner Bowman’s question regarding the list of violations for short
term rentals, Ms. Hughes said that staff only recently had known addresses of STRs from the
Airbnb data collected. She said we can't readily align the short term rental information collected
with the code violation data except for what we know happened in 2017, because that's the
point in time where we have the Airbnb known addresses. In 2017 there were no noise
violations that are known for the short term rental locations.
In response to Chairman Hays’ question, Ms. Hughes reviewed the onsite supervision
for the two types of short term rentals. She said there is no minimum stay requirement and the
definition for a maximum stay would be 29 days. If an occupant were to stay longer then it is
not considered a short term but a long term rental. She added that having a short term rental
would not preclude one from having a long-term rental. Chairman Hays noted that there was a
general consensus that a homestay rental could be allowed in both the residential and
commercial districts. She added that that was without a separation requirement or a parking
requirement but would require a registration. There was further discussion as to STRs in the
historic district and using the parking permit program for certain neighborhoods.
Chairman Hays noted there was a general consensus that whole house rentals in
commercial districts would be allowed without separation requirements and would also have to
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register. Commissioner Hovis stated that there seemed to be issues with parking and safety but
confusion regarding the data on that. The separation regulation seemed to create an undue
hardship on a property owner as someone has one and then another person can’t have another
one, it eliminates another person from operating one. Commissioner McGuire strongly
disagreed. Commissioner McGuire said the home stay and whole house are two entirely
different animals and they definitely need to be treated separately. He said the whole house
does need to have separation requirements to keep blocks of our city from becoming a hotel
block.
Commissioner Hovis addressed the issue of turning neighborhoods into hotels. He cited
one argument used was that of affordable housing. He inquired into the definition of affordable
housing. The definition is that housing costs must be 30 percent of ones’ income. Median
income for affordable housing in Wilmington is $42,000, for an individual it is $29,000 and the
family median income is a little bit higher, approximately $52,000. He noted those are ballparks.
The discussions that people are worried about is that we are going to turn these houses into
rentals where the city is then not going to have affordable housing. Commissioner Hovis said
the rents have to be below a thousand dollars a month in these districts where this is happening
and that's not happening now. There are other ways to keep the integrity of neighborhoods but
people should be allowed to use their property. We need to comply with the restrictions in the
historic districts. Preservation restrictions exist with what one is allowed to do but if we want to
regulate how people invest in that, then Commissioner Hovis said he disagreed with the
separation requirements. For many people in Wilmington this could actually add vibrancy to
some neighborhoods that don't have the funds for investing.
Chairman Hays was concerned that in Wilmington we could reach a saturation point as
she wondered if there is a natural ceiling were we don’t have to place onerous regulations on
the industry. Whether historic districts or outside of the districts, the neighborhoods cannot be
denigrated. So we must preserve and protect the neighborhoods. She wondered if there would
be too many STRs and we should establish the ceiling with the number of allowed permits and
cap the number of them.
Commissioner McGuire agreed and said we would have to cap the number as does
Austin, Texas were they have established a maximum of 3% of whole house rentals per area,
like our historic district or the 1945 corporate limits. Ms. Thurston, Zoning Administrator said it
is possible to establish a limit in the Historic District, the HDR from other districts. There was a
lengthy discussion of having separation distances versus a percentage cap in an area versus
allowing one per block.
Commissioner Bowman did not agree with having separation rules or parking rules and
said he could not distinguish between short term rental and long term rentals as there is a lack
of evidence or data purporting violations on record officially for the year of 2017. He agreed
with staff’s recommendations on the definitions and registration requirements and the three
strike rule should apply. He suggested not starting out with too many restrictions and then a
year later try to figure out how to reverse some of that like some of these other municipalities
have. He would rather ease into it with some logical definitions and then maybe bring more to
bear if it is determined to have real negative impact.
Commissioner Bowman asked Ms. Thurston which method of regulation was easier to
enforce; a separation requirement between STRs or a percentage of permits with a cap on it for
the city. Ms. Thurston said either of those methods would be easily implemented. At issue is
the enforcement for those who don't come in to register their locations. The city routinely treats
ordinances the same. As far as the difficulty in figuring out if a location meets the separation
requirements, whatever that may be, that would not be difficult enforce. Ms. Thurston noted that
PH4-65
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it more the illegal uses and the staff resources that we currently have to enforce those so the
city would need additional people to enforce those illegal uses. We currently have three
dedicated zoning officers and they could probably all be occupied with their 40 hours a week in
identifying illegally used properties.
Vice-Chairman Collier stated that the staff had done a herculean effort to gather data.
The data is out there in such a wide variety of formats and on different web sites and then
there's people that don't even go on these web sites, they just put an ad in the paper or an ad
on Craig's List and it is almost impossible to gather that data. It is almost impossible to gather
accurate information without having some sort of registration process.
Commissioner Bowman suggested a robust registration, no space restriction or a

percentage restriction. Have them all pay room occupancy tax, collect the data, see how many
three strikes have actually reached three outs and cannot re-apply for three years? This would
keep the process aboveboard. If there is a restriction on how many or how far apart, regardless
of what type you are talking about, that is going to drive it underground. Somebody is going to
continue to rent out. They may be put off of Airbnb but they can go on Craig’s List, or Facebook,
or whatever new platform is out there. It's just going to go underground.
Chairman Hays reviewed the procedures suggested and discussed having a six month
study period wherein the staff reported back if there are trash issues, noise issues, or parking
issues, etc. then we determine if we need a separation distance. She added utilizing the data
whether we need to cap the registrations. The proposals were reviewed in detail with some
agreement and other dissention among commissioners.
Vice-Chairman Collier moved to approve the Land Development Code Amendment to

amend City Code Chapter 18 to add "whole-house lodging" and "homestay lodging" as uses
permitted with prescribed conditions, delete "guest lodging" as a use, to add, revise, or delete
several definitions, and to delete references to "guest lodging" throughout the code for the
definitions as presented by staff but to eliminate the off street parking requirements for any of
the three definitions for short term rentals and to include the separation requirements as written
for whole house rentals type 2 of 400' inside the 1945 corporate limits and 650' outside of the
1945 corporate limits as the proposal is consistent with the polices of the City of Wilmington, the
Create Wilmington Comprehensive Plan and focus areas and the Planning Commission finds
this reasonable meets the findings of fact and in the public interest because it meets the need
provided to us by the citizens of Wilmington and the staff and it seems to be one of the more fair
solutions for the short term rental issue that has been on-going.
The motion was seconded by Commissioner McGuire.
The motion failed 2 – 4, with Vice-Chairman Collier and Commissioner McGuire who
voted ‘aye’ and Chairman Hays, Commissioner Bowman, Commissioner Hovis and
Commissioner Roberts who voted ‘nay’.
Commissioner Bowman moved to approve the Land Development Code Amendment to

amend City Code Chapter 18 to add "whole-house lodging" and "homestay lodging" as uses
permitted with prescribed conditions, delete "guest lodging" as a use, to add, revise, or delete
several definitions, and to delete references to "guest lodging" throughout the code for the
definitions as presented by staff but to eliminate the parking requirement listed as Section
18:331 (e) and eliminate the minimum distance separation for whole house type 2 listed as
Section 18:331 (b) 1) and to remove the ‘natural person’ clause so there is no restriction for an
individual person as the proposal is consistent with the objectives and policies of the City of
Wilmington, the Create Wilmington Comprehensive Plan and focus areas and the Planning
PH4-66
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Commission finds this reasonable meets the findings of fact and in the public interest because it
meets the need provided to us by the citizens of Wilmington and the staff and there needs to be
more data collected on this issue. Commissioner Bowman included a one (1) year review
clause, staff shall review the data after its annual adoption. To which Commissioner Hovis
amended the motion to remove the review period to which Commissioner Bowman agreed to
the amendment.
The motion was seconded Commissioner Hovis.
There was further discussion and clarification regarding the individual person, a corporation, a
LLC and a trust operating and registering.
The motion failed, 3 - 3 with Commissioner Bowman, Commissioner Hovis and

Commissioner Roberts who voted ‘aye’ and Vice-Chairman Collier, Commissioner McGuire and
Chairman Hays who voted ‘nay’.
Attorney Schaefer discussed the procedures for the vote and motions and moving the
process along.
Commissioner Bowman moved to approve moved to approve the Land Development

Code Amendment to amend City Code Chapter 18 to add "whole-house lodging" and "homestay
lodging" as uses permitted with prescribed conditions, delete "guest lodging" as a use, to add,
revise, or delete several definitions, and to delete references to "guest lodging" throughout the
code for the definitions as presented by staff but to eliminate the parking requirement listed as
Section 18:331 (e) and eliminate the minimum distance separation for whole house type 2 listed
as Section 18:331 (b) 1) but to keep in place the staff restriction of one individual per registration
as approval is consistent with the objectives and policies of the City of Wilmington, the Create
Wilmington Comprehensive Plan and focus areas and the Planning Commission finds this
reasonable meets the findings of fact and in the public interest because it meets the need
provided to us by the citizens of Wilmington and the staff as evidence-based findings.
The motion was seconded by Commissioner Hovis.
The motion failed 3 – 3 with Commissioner Bowman, Commissioner Hovis and

Chairman Hays who voted ‘aye’ and Vice-Chairman Collier, Commissioner McGuire and
Commissioner Roberts who voted ‘nay’.
It was determined by the Chairman to forward the stalemate decisions to City Council.
Chairman Hays excused Commissioner McGuire who had to be excused and he left the
meeting.
Approval of Minutes
Commissioner Hovis moved to approve the meeting minutes for the Special Work
Session October 18, 2017 and the motion was seconded by Vice-Chairman Collier.
The motion carried 5 - 0.
13. Items from the Commission- PLEASE NOTE: This is a RESCHEDULED meeting due
to the inclement weather on 01-03-2018.
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Commissioner Hovis moved to adjourn the meeting and the motion was seconded by
Commissioner Collier.
There being no further business the meeting adjourned at 11:47 p.m.

The next scheduled regular Planning Commission meeting is Wednesday, February 7, 2018.
Tamara Mercer
PH4-68
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Supporting Documents - Short Term Rental - City of Wilmington

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ITEM PH4

OFFICE OF THE CITY MANAGER

Dear Mayor and Councilmembers:

Passage of the attached Ordinance is recommended.

Introduced By: Sterling B. Cheatham, City Manager Date: 6/19/2018

WHEREAS, NCGS Section 160A-385 authorizes local governments to amend ordinances

(11) Homestay lodging

(8) Homestay lodging

(11) Homestay lodging

(11) Homestay lodging

(11) Homestay lodging

(10) Homestay lodging

(12) Homestay lodging

viii. Homestay lodging by prescribed conditions

(4) Homestay lodging

(6) Homestay lodging

(4) Homestay lodging

(27) Homestay lodging

(27) Homestay lodging

(15) Homestay lodging

Sec. 18-277. Reserved

Sec. 18-330. Homestay lodging in residential, multifamily, and historic districts.

(a) The name and telephone number of the host.

Adopted at a ________________ meeting

ATTEST: APPROVED AS TO FORM:

Penelope Spicer-Sidbury, City Clerk City Attorney

Staff Recommendation: Approval

Planning Commission No recommendation

The proposed amendment, in summary, would:

Benchmark Cities Research – Updated May 2018

Alexandria, VA Not regulated

Asheville  Regulations adopted November 2015; amendments approved

New Bern Not regulated

districts (no cap for owner-occupied properties) and non-owner

Definitions Code Proposed Changes (additions underlined, deletions in

a. A property owner shall register each

2) The maximum number of guest rooms allowed

(3) guest rooms.

3) In the R and H districts:

1. The host shall issue a parking placard to each

4) The use provisions of this section are not subject to

5) If there are three (3) final determinations of

6) Any property owner registering a homestay

7) Property owners registering a homestay lodging

8) Homestay lodging registrants and hosts shall

made available, upon request, to the City Manager.

9) The definition of “family” and the restriction of a

10) Written notice shall be conspicuously posted inside

(a) The name and telephone number of the host.

(c) A property owner, as well as any host/operator, shall

(d) Property owners shall be responsible for keeping in full

(e) Written notice shall be conspicuously posted inside

of Wilmington Police Department.

(f) The host/operator shall ensure that all refuse is

(g) Preparation and service of food by host/operators for

(h) Within the CBD, short-term lodging uses shall be

CONSISTENCY WITH ADOPTED PLANS

Strong Support Modest Support Modest Non-support Strong Non-support

Policies 1 Development & City Building

priority areas for rehabilitation and adaptive reuse.

Fair Housing, Universal Design, and Aging in Place

The goals of this proposal are to:

City Council Scheduled for public hearing 6.17.18

Information from the January 29, 2018 Planning Commission meeting: