Lubec's proposed short-term rental plan sparks debate

Of the two ordinances discussed at the well‑attended July 15 public hearing in Lubec, the Short‑term Rental (STR) Ordinance that would require registration of all qualifying STRs and an annual flat fee of $100 raised the most concerns. The second ordinance was to modify the Intent to Build/Demolition Notification form by replacing the $20 flat fee with a municipal fee schedule set by the select board.

Code Enforcement Officer (CEO) Alex Henry and some members of the ad‑hoc STR Committee, Martha Howell, Eugene Gaffey and Wayne Carreiro, were in attendance. Several short‑term rental owners were represented on the entire ad‑hoc committee. The committee was appointed by the select board to look into STRs, in part due to the increasing number of rentals in recent years, a desire to generate tax‑offsetting revenue and to assist public services planning.

Those in attendance expressed concerns about the ordinance, not the least of which being the question: "What problem does it solve?"

The purpose, according to the ordinance, "is to gain information on the volume and types of short‑term rental units in Lubec and to obtain relevant contact information about the owners." If adopted, the ordinance would go into effect on January 1 and make the CEO responsible for enforcement.

Board member Martha Howell said, "We are trying to get our arms around how many of the dwellings in town are available for workers who need a place to live as opposed to being held for short‑term summer rentals."

One non‑resident from Virginia who is thinking of moving to the area said she found more than 100 rentals but she couldn't find any longer-term ones.

Another resident suggested the committee focus on other ways to increase housing by talking to large landowners who want to subdivide "but don't want to be responsible for the taxes."

Others argued the fee would generate income that would offset taxes. However, not being able to direct where the money is spent was a concern for others.

Select board member Daniel Wagner pointed out that STRs bring people in who spend a lot of money, saying, "It adds to people coming to the town and wanting to move here." Others noted that a lot of people are renting them out to pay their taxes.

In support of the ordinance, Howell added, "The information can be applied to Lubec's comprehensive plan."

Gaffey recounted how a burst pipe at an STR in Stonington drained their water supply. Others countered that "the same can be true of people from away that own houses," with many not being in Lubec during the winter months.

Other questions from attendees were how the committee decided on the $100 fee. Henry explained that the ordinance is mirrored on the intent-to-build form and that the $100 fee came about by the committee looking at similar ordinances, discussing a sliding scale, considering different charges for residents and non‑residents and then deciding a flat fee would be fairest.

He also explained that the tax database does not track short‑term rentals and there are limitations in getting the information from Airbnb or VRBO. Henry will obtain an initial STR list from AirDNA, an STR data analytics website to cross‑reference with town rolls.

The ordinance covers only short‑term rentals and excludes motels, hotels, inns, bed and breakfasts, boarding houses and licensed campgrounds. The ordinance also does not include a lodging house, boarding house, rooming house, co‑living dormitory, bed and breakfast, hotel or inn, motel, tent lean‑to, dormitory, fraternity or sorority house or tourist cabin.

The definition of an STR is "the advertising, offering for rent, use, control, management or operation of a dwelling unit in whole or in part, for dwelling, sleeping or lodging purpose for a period of less than 30 consecutive days, for compensation, directly or indirectly."

One attendee recommended a more specific definition of "dwelling" to avoid confusion, given questions about what is a tourist cabin and what constitutes a lean‑to.

Some questioned the $100 fee, saying, "It is high for just collecting information." Another asked about a future moratorium, which would require a town vote to put in place.

Henry stated, "This ordinance has fewer regulations than Stonington's, which separates residents from non-residents, and has restrictions depending on which category. We didn't feel we had the justification for something like that. So we're starting with collecting data and keeping track of what we have going on in the community for short-term rentals."

The proposed changes to the Intent to Build/Demolition form met with comparatively less resistance. The revised ordinance removes the $20 fee and replaces it with a municipal fee schedule, subject to change no more than 10% a year by the select board, likely calculated on square footage.

This change was at the request of the select board. "It allows the board to set the fee schedule," said Henry, to provide a means of notifying the town for assessment and taxing purposes.

Henry made the case that it would be less than $20 for a structure smaller than 200 square feet, while others pointed out that most houses are a lot larger than that. For example, a 2,000 square-foot house at $.20 per square foot would lead to a $400 fee.

Henry noted that most towns charge by the square foot and "Lubec is at the bottom of what others are charging to build." Others noted that the majority of new residences are built by non-residents and that people from away have the money.

Dana Bradley offered a counterpoint, saying, "I'm all in favor of this to provide the means to notify the town for assessment and tax purposes, but we are just taxing ourselves right to death. There are people out there that are trying to build a house, paycheck to paycheck, and this is just one more thing thrown on top. And we don't need it."

The town will vote on both ordinances at the town business meeting on Wednesday, August 12, at 6 p.m. at the Lubec school.