The city of East Peoria is imposing a six month moratorium on new short-term rentals while the city re-evaluates its rules and regulations around the properties.
This comes as the neighbors of two short-term rental properties up for council approval on Tuesday night came out en force to oppose them.
Current city code requires property owners to seek a special use from the Zoning Board of Appeals and City Council to operate a short-term rental in a residential neighborhood.
Tom Pemble sought a special use for a short-term rental for his property at 310 Oakbrook Dr., and Huskins LLC wanted a green light for a short-term rental at 108 Carroll St.
But neighbors said the property owners aren't abiding by the rules and their short-term tenants are creating nuisances and safety concerns. Documents drafted by city director of planning and community development Ty Livingston said both properties began operating as short-term rentals before applying for special uses.
Livingston noted one owner said he wouldn't continue booking people until the application process was complete, but has apparently continued doing so regardless. The other owner had previously paid a $500 fine. The city presented the operation to a hearing officer to initiate the zoning process.
Neither applicant made an appearance at Tuesday's city council meeting. It was a point repeatedly raised by commissioners who said it reflected poorly upon them.
East Peoria Mayor John Kahl voted against both applications, and supported the moratorium.
"Who enforces all this? We put forward the ordinance and we don't enforce jack shit. I'm just being honest with you. We just don't," he said. "We've got an epic fail going on here. And it's time to reset, regroup, reevaluate, and get it right if we're going to allow this moving forward."
City attorney Scott Brunton noted the city could issue cease and desist orders against short-term rental operators violating East Peoria's rules. He said the city could also ask a court to impose hefty daily fines for violations.
"That can usually dissuade people pretty quickly. Some people you got to take them to court to get them to stop, but the city does have teeth, does have a legal means to stop it," he said.
Commissioner Mark Hill voted in favor of the moratorium, but he also said there is "misinformation" floating around that Airbnb's are taking over the city.
"They come and go. We've got 11, and according to the census, you know, there's 9600 households in the city of East Peoria," Hill said. "So currently it's less than 1/10 of 1% of the households that are currently occupied."
But Kahl said East Peoria has older housing stock and limited room for new residential growth. He said he's concerned by how the proliferation of short-term rentals could eventually impact the housing market, particularly if many of the properties are bought up by LLCs.
"My concern is where this leads if we don't do something now, to further either restrict it or not allow them moving forward," he said.
Commissioner Dan Decker noted he's stayed in Airbnb's before, but they're usually in tourist locations. He said he's also concerned how short-term rentals could impact the hotels that the city has previously invested in.
"I'm just grateful that we're having this moratorium and hopefully we can come up with some concrete guidance on what we do in the future," Decker said.
Hill was the only commissioner to vote in favor of approving both short-term rental applications before the council on Tuesday night. The council unanimously approved the moratorium.
