Restrictions on length of stay for condo hotels were back in front of council again last week.
Deep Powder Properties has proposed a direct control district with a new land use that would see the 30-day restriction on visitor accommodation removed as an attempt to deal with the resistance of banks to provide mortgage financing on properties that limit length of stay.
The direct control district would apply only to the 100-unit Lodges at 101 Montane Road and would add a visitor accommodation – extended stay as a land use and require units be part of a managed rental operation.
Mayor Ron Casey expressed concerns that the change will see units turn into full-time residences and erode the number of hotel rooms available in the community into the future.
“If we are going to maintain (Canmore) as a tourist town, we need visitor accommodation,” Casey said, adding he is doubtful the two major resort centres of Silvertip and Three Sisters Mountain Village will ever become a reality.
Casey also questioned changing land use for the financial benefit of a landowner, saying the application sets off “alarm bells” for him.
“The caution to me is the long-term view of this and the suggestions we should adjust long-term land use planning in order to get financial benefits for landowners,” he said.
Councillor John Borrowman said he would support the motion, but was cautious about what message it sends to other landowners.
“I would want the message to be as clear as possible to other landowners that council considers this a trial land use change and is not open to future applications until the area redevelopment plan on Bow Valley Trail is complete,” Borrowman said.
A previous application by the developer to address the issue by adding a discretionary use to the entire Bow Valley Trail district was defeated by council last year.
Development planner Alaric Fish explained the current application is different from the one prior and addresses a number of concerns expressed by council.
He said changes include restricting the zoning change to one property and requiring units to be part of a rental pool as one concern was that changing length of stay would see units turn into full-time accommodation.
“The intent here is extended stay – visitor accommodation would still be for short-term rental, not permanent occupancy,” Fish said. “The intent here is that it is a hotel, but you can stay as long as you want.”
He added there is no mechanism to ensure that is how units are being used and it would be difficult to track.
Fish said administration is at this point open to the idea of trying the new use on a site-specific basis.
“This is a way to consider a small change, see how it works and its results,” he said. “It gives an inch, but it doesn’t give a mile.”
Coun. Hans Helder expressed concern there are already 29 direct control districts in Canmore and the one proposed would make it 30.
“It seems to me this is a process that is used for one-off situations,” Helder said. “There are ways we could deal with this that would not require another direct control district.”
Coun. Gordie Miskow said his concern is that owners will want to see their taxes reduced and was the only one to vote against first reading.
Fish, however, said the definition of the use is clearly defined as commercial for the purpose of taxation.
He said the applicant understands it is a commercial use and is trying to come up with a definition that will address a reluctance of banks to finance mortgages for these types of units.
Coun. Jim Ridley recused himself from the vote due to a perceived conflict of interest. As a realtor, Ridley has several properties listed on Kananaskis Way, the value of which could be affected by the bylaw change.
